This document provides an overview of total quality management (TQM). It defines TQM and discusses its key concepts, including its focus on customer satisfaction, commitment from management, and involvement of the entire workforce. The document also summarizes the contributions of quality gurus such as Deming, Juran, and Crosby to the development of TQM principles and techniques. Barriers that can prevent successful implementation of TQM are also mentioned.

1. GE6757-TOTAL QUALITY MANAGEMENT
UNIT I INTRODUCTION
UNIT I
Introduction - Need for quality - Evolution of quality - Definition of quality -
Dimensions of manufacturing and service quality - Basic concepts of TQM -
Definition of TQM Framework - Contributions of Deming, Juran and Crosby –
Barriers to TQM.
1.1 INTRODUCTION
The definition of quality depends on the role of the people defining it. Most consumers
have a difficult time defining quality, but they know it when they see For example, although
you probably have an opinion as to which manufacturer of athletic shoes provides the highest
quality, it would probably be difficult for you to define your quality standard in precise terms.
Also, your friends may have different opinions regarding which athletic shoes are o f highest
quality. The difficulty in defining quality exists regardless of product, and this is true for both
manufacturing and service organizations. Think about how difficult it may be to define quality
for products such as airline services, child day-care facilities, college classes, or e textbooks.
Today, there is no single universal definition of quality. Some people view
quality―performance
to standards. Others view it as ―meeting the customer‘s needs‖ or ―the customer. Let‘s look at
some of the more common definitions of quality.
Total Quality Management (TQM) is an enhancement to the traditional way of doing
business.
Total - Made up of the whole
Quality - Degree of Excellence a Product or Service
provides. Management - Art of handling, controlling, directing etc.
TQM is the application of quantitative methods and human resources to improve all
the processes within an organization and exceed CUSTOMER NEEDS now and in the future.
1.2 NEED FOR QUALITY MANAGEMENT

2. By definition of ISO (Int'l Org. for Standardization) - TQM is a mgmt approach for an
org.which is centered on quality and is based on the participation of all members to aim at long-term
success thru customer satisfaction (main) and also to its members and the society in whole.
TQM in Large-scale industries
- Reduction in wastage: TQM ensures things are done rite the 1st time, so this reduces
wastage
and defects.
- Quality Assurance: TQM guarantees that all the products and even operations in the org. are
of
a certain quality standard. This promotes trust to the consumers and also maintains a
healthy environment for employees.
- Customer-based: TQM focuses on the needs of the customers and can be used effectively,
to make changes to the existing product design to meet such needs.
-Failure Analysis: TQM is a statistical tool also. Hence provides a learned person with the
faults
and failures in various processes. This in turn can be used to make corrective
progress.
1.3 EVOLUTION OF QUALITY
Evolution of quality provides high degree of assurance that manufacturer will
consistently produce medical devices that:
• Are safe Perform as intended
• Comply with customer requirements
• Comply with regulatory requirements
• Have the appropriate degree of quality
1.4 DEFINING QUALITY:
Quality can be quantified as
follows
Q = P / E
where,
Q = Quality
P = Performance
E = Expectation
Today, there is no single universal definition of quality. Some people view quality as
performance to standards. Others view it as ―meeting the customer‘s need or satisfying the
customer. Let‘s look at some of the more common definitions of quality.
• Conformance to specifications measures how well the product or service meets
the targets and tolerances determined by its designers. For example, the dimensions of a
machine part may be specified by its design engineers as 3.05 inches. This would mean

3. that the target dimension is 3 inches but the dimensions can vary between 2.95 and 3.05
inches. Similarly, the wait for hotel room service may be specified as 20 minutes,
but there may be an acceptable delay of an additional 10 minutes. Also, consider the
amount

4. of light delivered by a 60 watt light bulb. If the bulb delivers 50 watts it does not
conform to specifications. As these examples illustrate, conformance to specification is
directly measurable, though it may not be directly related to the consumer‘s idea of
quality.
• Fitness for use focuses on how well the product performs its intended function or use.
For example, a Mercedes Benz and a Jeep Cherokee both meet a fitness for use
definition if one considers transportation as the intended function. However, if the
definition becomes more specific and assumes that the intended use is for transportation
on mountain roads and carrying fishing gear, the Jeep Cherokee has a greater fitness
for use. You can also see that fitness for use is a user-based definition in that it is
intended to meet the needs of a specific user group.
• Value for price paid is a definition of quality that consumers often use for product
or service usefulness. This is the only definition that combines economics with
consumer criteria; it assumes that the definition of quality is price sensitive. For
example, suppose that you wish to sign up for a personal finance seminar and discover
that the same class is being taught at two different colleges at significantly different
tuition rates. If you take the less expensive seminar, you will feel that you have
received greater value for the price.
• Support services provided are often how the quality of a product or service is judged.
Quality does not apply only to the product or service itself; it also applies to the people,
processes, and organizational environment associated with it. For example, the quality
of a university is judged not only by the quality of staff and course offerings, but also by
the efficiency and accuracy of processing paperwork.
Psychological criteria are a subjective definition that focuses on the judgmental
evaluation of what constitutes product or service quality. Different factors contribute
to the evaluation, such as the atmosphere of the environment or the perceived prestige of
the product. For example, a hospital patient may receive average health care, but a very
friendly staff may leave the impression of high quality. Similarly, we commonly
associate certain products with excellence because of their reputation; Rolex watches
and Mercedes-Benz automobiles are examples.
1.5 DIMENSIONS OF MANUFACTURING AND SERVICE QUALITY
DIMENSIONS OF QUALITY:
----------------------------------------------------------------------------------------------------------------
Dimension Meaning and Example
----------------------------------------------------------------------------------------------------------------
Performance Primary product characteristics, such as the brightness of the
picture Features Secondary characteristics, added features, such as remote control

5. Conformance Meeting specifications or industry standards, workmanship
Reliability Consistency of performance over time, average time of the unit to
fail Durability Useful life, includes repair
Service Resolution of problems and complaints, ease of repair
Response Human – to – human interface, such as the courtesy of the dealer
Aesthetics Sensory characteristics, such as exterior finish
Reputation Past performance and other intangibles, such as being ranked first
----------------------------------------------------------------------------------------------------------------
Dimensions of Manufacturing and Service quality
Defining quality in manufacturing organizations is often different from that of services.
Manufacturing organizations produce a tangible product that can be seen, touched, and directly
measured. Examples include cars, CD players, clothes, computers, and food items. Therefore,
quality definitions in manufacturing usually focus on tangible product features.
The mostcommon quality definition in manufacturing is conformance, which is the degree to
which a product characteristic meets preset standards. Other common definitions of quality in
manufacturing include
performance—such as acceleration of a vehicle;
reliability—that the product will function as expected without failure;
features—the extras that are included beyond the basic
characteristics; durability—expected operational life of the product
serviceability—how readily a product can be repaired.
The relative importance of these definitions is based on the preferences of each
individual customer. It is easy to see how different customers can have different definitions in
mind when they speak of high product quality.
In contrast to manufacturing, service organizations produce a product that is intangible.
Usually, the complete product cannot be seen or touched. Rather, it is experienced. Examples
include delivery of health care, experience of staying at a vacation resort, and learning at a
university. The intangible nature of the product makes defining quality difficult. Also, since a
service is experienced, perceptions can be highly subjective. In addition to tangible factors,
quality of services is often defined by perceptual factors. These include responsiveness
to customer needs, courtesy and friendliness of staff, promptness in resolving complaints, and
atmosphere. Other definitions of quality in services include time—the amount of time a
customer has to wait for the service; and consistency—the degree to which the service is the
same each time For these reasons, defining quality in services can be especially challenging.
1.6 BASIC CONCEPTS OF TOTAL QUALITY MANAGEMENT

6. The concept of has existed for many years, though its meaning has changed and
evolved over time. In the early twentieth century, quality management meant inspecting
products to ensure that they met specifications. In the 1940s, during World War II, quality
became more statistical in nature. Statistical sampling techniques were used to evaluate quality,
and quality control charts were used to monitor the production process.
In the 1960s, with the help of so-called ―quality gurus,the concept took on a broader
meaning. Quality began to be viewed as something that encompassed the entire organization,
not only the production process. Since all functions were responsible for product quality and all
shared the costs of poor quality, quality was seen as a concept that affected the entire
organization. The meaning of quality for businesses changed dramatically in the late 1970s.
Before then quality was still viewed as something that needed to be inspected and corrected.
However, in the 1970s and 1980s many U.S. industries lost market share to
foreign competition. In the auto industry, manufacturers such as Toyota and Honda
became major players. In the consumer goods market, companies such as Toshiba and Sony led
the way. These foreign competitors were producing lower-priced products with considerably
higher quality. To survive, companies had to make major changes in their quality programs.
Many hired consultants and instituted quality training programs for their employees. A
new concept of quality was emerging. One result is that quality began to have a
strategic meaning. Today, successful companies understand that quality provides a competitive
advantage. They put the customer first and define quality as meeting or exceeding customer
expectations.
Since the 1970s, competition based on quality has grown in importance and has generated
tremendous interest, concern, and enthusiasm. Companies in every line of business are focusing
on improving quality in order to be more competitive. In many industries quality excellence has
become a standard for doing business. Companies that do not meet this standard simply will
not survive. As you will see later in the chapter, the importance of quality is
demonstrated by national quality awards and quality certifications that are coveted by
businesses.
The term used for today‘s new concept of quality is total quality management or TQM.
Figure 5-3 presents a timeline of the old and new concepts of quality. You can see that the old
concept is reactive, designed to correct quality problems after they occur. The new concept is
proactive, designed to build quality into the product and process design. Next, we look at the
individuals who have shaped our understanding of quality.
Definition of TQM
Total Quality Management is a management approach that tries to achieve and sustain long
term organizational success by encouraging employee feedback and participation, satisfying
customer needs and expectations, respecting societal values and beliefs, and obeying
governmental statutes and regulations.
Five Pillars of TQM are,
• Product
• Process

7. • System
• People
• Leadership
Total Quality Management is an effective system for integrating the quality development,
quality maintenance and quality improvement efforts of various groups in an organization
continuously, so as to enable marketing, engineering, production and service at the most
economic levels which allow for full customer satisfaction.
The TQM is applied to many stages of Industrial Cycle which are listed
below:
1. Marketing
2. Engineering
3. Purchasing
4. Manufacturing
5. Mechanical
6. Shipping
7. Installation and product
service.
Fundamental factors affecting Quality: (9
M’s)
1. Market
2. Money
3. Management
4. Men
5. Motivation
6. Materials
7. Machines and Mechanization
8. Modern Information
Methods
9. Mounting Product
Requirements
1.7 TQM FRAMEWORK
QUALITY PLANNING
The following are the important steps for quality
planning.
1. Establishing quality goals.

8. 2. Identifying customers.
3. Discovering customer needs.
4. Developing product features.

9. 5. Developing process features.
6. Establishing process controls and transferring to operations.
7.
IMPORTANT POINTS TO BE NOTED WHILE QUALITY PLANNING:
1. Business, having larger market share and better quality, earn returns much higher than
their competitors.
2. Quality and Market share each has a strong separate relationship to profitably.
3. Planning for product quality must be based on meeting customer needs, not just
meeting product specifications.
4. For same products. We need to plan for perfection. For other products, we need to plan
for value.
QUALITY COSTS
1. PREVENTION COST
 Marketing / Customer / User.
 Product / Service / Design Development.
 Purchasing
 Operations (Manufacturing or Service)
 Quality Administration.
2. APPRAISAL COST
 Purchasing Appraisal Costs.
 Operations Appraisal Costs
 External Appraisal Costs
 Review of Test and Inspection Data
 Miscellaneous Quality Evaluations
3. INTERNAL FAILURE COST
 Product or Service Design Failure Costs (Internal)
 Purchasing Failure Costs
 Operations (Product or Service) Failure Costs
4. EXTERNAL FAILURE COST
 Complaint Investigations of Customer or User Service
 Returned Goods
 Retrofit and Recall Costs
 Warranty Claims
 Liability Costs
 Penalties
 Customer or User Goodwill
 Lost Sales

10. ANALYSIS TECHNIQUES OF QUALITY COST
 The purpose of quality cost analysis is to determine the cost of maintaining a certain level
of quality.
 Such activity is necessary to provide feedback to management on the performance of
quality assurance and to assist management in identifying opportunities.
INDEX NUMBERS
Index Numbers are often used in a variety of applications to measure prices, costs (or) other
numerical quantities and to aid managers in understanding how conditions in one period
compare with those in other periods.
 A simple type of index is called a RELATIVE INDEX.
QUARTER COST IN RS.
1 2000
2 2200
3 2100
4 1900
Cost Index in quarter t = (Cost in quarter t / Base period cost) x 100
QUARTER COST RELATIVE INDEX
1 (2000/2000) x 100 = 100
2 (2200/2000) x 100 = 110
3 (2100/2000) x 100 = 105
4 (1900/2000) x 100 = 95
TREND ANALYSIS:

11.  Good visual aids are important communication tools.
 Graphs are particularly useful in presenting comparative results to management.
Trend Analysis is one where Time-to-Time comparisons can be made which illustrates the
changes in cost over time.
TREND ANALYSIS - WATCHES
8.5
7
1.4
.6
60.7
50
10.7
87.5
6
5
60
42.5
7.5
3
8
100
95
90
85
80
75
70
65
60
55
50
45
40
35
30
25
20
15
10
5
103.3
60
33.3
10
1 2 3 4
PARETO ANALYSIS:
 Joseph Juran observed that most of the quality problems are generally created by only a
few causes.
 For example, 80% of all internal failures are due to one (or) two manufacturing problems.

12. give a high return for a low money input.
Incomplete
Surfacescars
Cracks
Surfacepits
RoughSurface
Scratches
Lesspolishing
Misssharpen
Others
 Identifying these ―vital few‖ and ignoring the ―trivial many‖ will make the corrective action
VITAL FEW
40 36.4 %
35
30 27.3 %
25 22.7 %
20
15
10
TRIVIAL MANY
5 2% 3%
1% 2%
4% 3%
PARETO DIAGRAM
SIX BASIC CONCEPTS OF TOTAL QUALITY MANAGEMENT
1. Management Commitment
2. Customer Focus
3. Involvement and utilization of entire work force
4. Continuous Improvement
5. Treating Suppliers as Partners
6. Establish Performance Measures for the processes

13. NEW AND OLD CULTURES:
--------------------------------------------------------------------------------------------------------------
Quality Element Previous State TQM
--------------------------------------------------------------------------- -------------------------------------
Definition Product Oriented Customer Oriented
Priorities Second to service First among equals of and
cost service and cost
Decisions Short term Long term
Emphasis Detection Prevention
Errors Operations System
Responsibility Quality control Everyone
Problem Solving Managers Teams
Procurement Price Life cycle costs,
Partnership
Manager‘s Role Plan, assign, control Delegate, coach,
and enforce facilitate and mentor
GURUS OF TQM
SHEWHART - Control chart theory
- PDCA Cycle
DEMING - Statistical Process Control
JURAN - Concepts of SHEWHART
- Return on Investment ( ROI )
FEIGANBAUM - Total Quality Control
- Management involvement
- Employee involvement
- Company wide quality control
ISHIKAWA - Cause and Effect Diagram

14. - Quality Circle concept
CROSBY - “Quality is Free”
- Conformance to requirements
TAGUCHI - Loss Function concept
- Design of Experiments
1.8 CONTRIBUTIONS BY QUALITY GURUS
To fully understand the TQM movement, we need to look at the philosophies of notable
individuals who have shaped the evolution of TQM. Their philosophies and teachings
have contributed to our knowledge and understanding of quality today.
Walter A. Shewhart Walter A. Shewhart was a statistician at Bell Labs during the 1920s
and 1930s. Shewhart studied randomness and recognized that variability existed in all
manufacturing processes. He developed quality control charts that are used to identify
whether the variability in the process is random or due to an assignable cause, such as poor
workers or miscalibrated machinery. He stressed that eliminating variability improves quality.
His work created the foundation for today‘s statistical process control, and he is often referred
to as the grandfather of quality control.
W. Edwards Deming is often referred to as the ―father of quality control.He was a
statistics professor at New York University in the 1940s. After World War II he assisted many
Japanese companies in improving quality. The Japanese regarded him so highly that in 1951
they established the Deming Prize, an annual award given to firms that demonstrate
outstanding quality. It was almost 30 years later that American businesses began adopting
Deming‘s philosophy. A number of elements of Deming‘s philosophy depart from traditional
notions of quality. The first is the role management should play in a company‘s quality Dr.
Deming's famous 14 Points, originally presented in out of the Crisis, serve as management
guidelines. The points cultivate a fertile soil in which a more efficient workplace, higher profits,
and increased productivity may grow.
• Create and communicate to all employees a statement of the aims and purposes of
the company.
• Adapt to the new philosophy of the day; industries and economics are always changing.
• Build quality into a product throughout production.
• End the practice of awarding business on the basis of price tag alone; instead, try a
long- term relationship based on established loyalty and trust.
• Work to constantly improve quality and productivity.
• Institute on-the-job training.
• Teach and institute leadership to improve all job functions.

15. • Drive out fear; create trust.
• Strive to reduce intradepartmental conflicts.
• Eliminate exhortations for the work force; instead, focus on the system and morale.
• (a)Eliminate work standard quotas for production. Substitute leadership methods
for improvement. (b) Eliminate MBO. Avoid numerical goals. Alternatively, learn the
capabilities of processes, and how to improve them.
• Remove barriers that rob people of pride of workmanship
• Educate with self-improvement programs.
• Include everyone in the company to accomplish the transformation.
Comments on some of Dr. Deming's points
The first of the 14 Points charges management with establishing continual improvement
through the redefinition of the company's purposes. Quite simply, the company must survive,
compete well, and constantly replenish its resources for growth and improvement through
innovation and research.
In the fifth point, Dr. Deming states that only a commitment to a process of continual
improvement truly rewards. A company cannot expect to ignite and feed a quality
revolution from which it will prosper for all time. Instead, it must adopt an evolutionary
philosophy; such a philosophy prevents stagnation and arms the company for the uncertain
future.
Part of the evolutionary mentality is to abandon practices that, despite their obvious
short term benefits, ultimately detract from the company's effectiveness. Point
number four specifically warns against this scenario: the purchasing department of a company
consistently patronizes those vendors who offer the lowest prices. As a result, the company
often purchases low quality equipment. Dr. Deming urges companies to establish loyal ties
with supp liers of quality equipment. Point five condemns mass inspection procedures as
inefficient; a product should be monitored by the workers, throughout the assembly process, to
meet a series of quality standards.
In the long term, the use of better equipment and a more intense worker-oriented
method of inspection will markedly improve productivity and lower costs. In order to
accomplish these goals, a company must develop a consistent, active plan that involves its
entire labor force in the drive toward total quality.
Cooperation- Dr. Deming based his new business philosophy on an ideal of
cooperation. In order to fulfill its own potential, a company must harness the power of every
worker in its employment; for that reason, the third point bars shoddy workmanship,
poor service, and negative attitudes from the company.
Theory of Profound Knowledge -- In order to promote cooperation, Deming espouses
his Theory of Profound Knowledge. Profound knowledge involves expanded views and an
understanding of the seemingly individual yet truly interdependent elements that compose the
larger system, the company. Deming believed that every worker has nearly unlimited potential
if placed in an environment that adequately supports, educates, and nurtures senses of pride
and

16. responsibility; he stated that the majority--85 percent--of a worker's effectiveness is determined
by his environment and only minimally by his own skill.
A manager seeking to establish such an environment must: employ an understanding of
psychology--of groups and individuals. eliminate tools such as production quotas and
sloganeering which only alienate workers from their supervisors and breed divisive competition
between the workers themselves. form the company into a large team divided into sub-teams
all working on different aspects of the same goal; barriers between departments often give rise
conflicting objectives and create unnecessary competition. spread profit to workers as teams,
not individuals. eliminate fear, envy, anger, and revenge from the workplace. employ
sensible methods such as rigorous on-the-job training programs.
In the resulting company, workers better understand their jobs--the specific tasks and
techniques as well as their higher value; thus stimulated and empowered, they perform
better. The expense pays for itself. The ideas of W. Edwards Deming may seem common or
obvious now; however, they've become embedded in our culture of work. Dr. Deming's
ideas (and personal example) of hard work, sincerity, decency, and personal responsibility,
forever changed the world of management. "It is not enough to just do your best or work hard.
You must know what to work on."- W. Edwards Deming
Biography As the sun rose on the 20th century, a baby was born to the Deming family
in a small town in Iowa. W. Edwards Deming would become a colossus of modern management
thinking. He would live through most of the century, and have a tremendous impact on its
second half. The Demings moved from Iowa to Wyoming, and in 1917, Edwards entered the
University of Wyoming. To fund his education, he worked as a janitor. He graduated in 1921,
and went on to the University of Colorado, where he received a M.S. in physics and
mathematics. This led towards a doctorate in physics from Yale University.
From physics, Dr. Deming gravitated towards statistics. The U.S. Census Bureau
hired Dr. Deming in 1940, just at the time that the Bureau shifted its procedure from a
complete count to a sampling method. Upon completion of the 1940 census, Deming
began to introduce Statistical Quality Control into industrial operations. In 1941, he and two
other experts began teaching Statistical Quality Control to inspectors and engineers. Dr.
Deming started his own private practice in 1946, after his departure from the Census Bureau.
For more than forty years his firm served its clientele--manufacturers, telephone
companies, railways, trucking companies, census takers, hospitals, governments, and research
organizations. As a professor emeritus, Dr. Deming conducted classes on sampling and
quality

17. control at New York University. For over ten years, his four-day seminars reached 10,
000 people per year. The teachings of Dr. Deming affected a quality revolution of
gargantuan significance on American manufacturers and consumers. Through his ideas,
product quality improved and, thus, popular satisfaction. His influential work in Japan--
instructing top executives and engineers in quality management--was a driving force behind
that nation's economic rise.
Dr. Deming contributed directly to Japan's phenomenal export-led growth and its current
technological leadership in automobiles, shipbuilding and electronics. The Union of Japanese
Science and Engineering (JUSE) saluted its teacher with the institution of the annual Deming
Prize for significant achievement in product quality and dependability. In 1960, the Emperor of
Japan bestowed on Dr. Deming the Second Order Medal of the Sacred Treasure. Stateside, the
American Society for Quality Control awarded him the Shewhart Medal in 1956. In 1983, Dr.
Deming received the Samuel S. Wilks Award from the American Statistical Association and
election to the National Academy of Engineering. President Reagan honored him with
the National Medal of Technology in 1987, and, in 1988, the National Academy of Sc iences
lauded him with the Distinguished Career in Science award. He was inducted into the
Automotive Hall of Fame in 1991.
Dr. Deming was a member of the International Statistical Institute. He was elected in
1986 to the Science and Technology Hall of Fame in Dayton. From the University of
Wyoming,
Rivier College, the University of Maryland, Ohio State University, Clarkson College of
Technology, Miami University, George Washington University, the University of
Colorado, Fordham University, the University of Alabama, Oregon State University, the
American University, the University of South Carolina, Yale University, Harvard University,
Cleary College, and Shenandoah University, Dr. Deming received the degrees L.L.D. and
Sc.D. honorius causa. From Yale University, he won the Wilbur Lucius Cross Medal,
and the Madeleine of Jesus from Rivier College. Dr. Deming authored several books and 171
papers. His books, Out of the Crisis (MIT/CAES, 1986) and The New Economics (MIT/CAES,
1994) have been translated into several languages. Myriad books, films, and videotapes profile
his life, his philosophy, and the successful application of his worldwide teachings.
Historical Review:
The history of quality control is undoubtedly as old as industry itself. In 1924, W.A.
Shewhart of Bell Telephone Laboratories developed a statistical chart of the control of product
variables. This chart is considered to be the beginning of statistical quality control. Later in the
same decade, H.F.Dodge and H.G.Romig, both of Bell Telephone Laboratories, developed the
area of acceptance sampling as a substitute of 100% inspection. In 1946, the American
society for Quality Control was formed. Recently the name was changed into Americn Society
for Quality (ASQ).
In 1950‘s W.Edwards Deming emphasized about the management‘s responsibility to
achieve quality. In 1960‘s the first quality control circles were formed for the purpose of
quality improvement. In the late 1980‘s the automotive industry began to emphasize statistical
process control. After 1990‘s the ISO became the model for a quality management system
world wide. Quality Movement in India: Before Independence in India, quality has been a
tradition but not in

18. a consolidated form. Walter Shewhart, the father of Statistical Quality Control, visited India for
a short period of three months during 1947-48 and initiated the SQC movements in Indian
companies.
The quality movement was consolidated in the 1980s in the Indian Industries to bring
out synergy of resources by the pioneering efforts of Confederation of Indian Industries
(CII) Dr.W.Edward Deming, the father of Quality Control , who taught Japanese about
applying PDCA cycle (Deming Cycle) came to India in early 1950s. The TQM movement
in USA in
1980s triggered quality movement in India in the year 1982 and Quality Circle was born.
Prof. Ishikawa , the founder of quality movement in Japan was invited by CII to come to
India to address Indian Industry in 1986. CII organized a first major seminar with Joseph Juran
in 1987. CII provided a focus and an impetus to the quality movement by forming a TQM
division in
1987.
By then the focus was shifted from quality circles to quality management. CII set up
the TQM division with the help of 21 companies who agreed to support the journey of
TQM in India. The chief executives of these companies formed a National Committee on
Quality. CII also launched the first newsletter on Quality. The year 1987 brought the ISO 9000
standards into reality and visible strategies emerged. CII organized training programmes in ISO
9000 quality systems for international standards and certification in the year 1989.
From the year 1991, Indian companies started to get the ISO 9000 certifications. The
concept of TQM spread over the service sector and technology apart from
engineering applications. CII organized and launch of National Quality Campaign in 1992, led
by the Prime
Minister of India and the ― Quality Summit ‖ organized by CII has now become an annual
feature across the country. The future thrust on quality movement in India would be based on:
Application Research (Industry and Academics) Experience Sharing ISO certifications
Environmental protection, safety and consumer protection for quality enhancement.
BENEFITS OF TQM
Customer satisfaction oriented benefits:
1. Improvement in product quality
2. Improvement in product design
3. Improvement in production flow
4. Improvement in employee morale and quality consciousness
5. Improvement in product service
6. Improvement in market place acceptance
Economic improvement oriented benefits:
1. Reduction in operating costs
2. Reduction in operating losses

19. 3. Reduction in field service costs

20. 4. Reduction in liability exposure
1.9 BARRIERS TO QUALITY MANAGEMENT
To fully understand the TQM movement, we need to look at the philosophies of notable
individuals who have shaped the evolution of TQM. Their philosophies and teachings
have contributed to our knowledge and understanding of quality today.
• One idea may be to look at new industry philosophies around continuous improvement.
The adoption of 'way of working' philosophies and 'lean' philosophies and how they tie in
with TQM.
• buzzwords such as 'empowerment', 'training' and 'knowledge-sharing' may be useful in
researching seminars on such topics.
• look at how attitudes of employees are improved with 'growth involvement'
• An interesting was the 'Fish Philosophy'.
• I appreciate that this does not directly answer your question, but may help you to find
research alternatives.
OBSTACLES IN IMPLEMENTING TQM:
 Lack of Management Commitment
 Inability to change Organizational culture
 Improper planning
 Lack of continuous training and education
 Incompatible organizational structure and isolated individuals and departments
 Ineffective measurement techniques and lack of access to data and results
 Paying inadequate attention to internal and external customers
 Inadequate use of empowerment and teamwork
 Failure to continually improve
UNIT II TQM PRINCIPLES
UNIT II
Leadership – Strategic quality planning, Quality statements - Customer focus –
Customer orientation, Customer satisfaction, Customer complaints,
Customer retention - Employee involvement – Motivation, Empowerment,
Team and Teamwork, Recognition and Reward, Performance appraisal -
Continuous process

21. improvement – PDSA cycle, 5s, Kaizen - Supplier partnership –
Partnering, Supplier selection, Supplier Rating.
2.1 LEADERSHIP
A leader is one who instills purposes, not one who controls by brute force. He strengthens
and inspires the followers to accomplish shared
goals. Leaders
 Shape the Organization‘s value
 Promote the Organization‘s value
 Protect the Organization‘s value and
 Exemplifies the Organization values
CHARACTERISTICS OF QUALITY LEADERS
1. They give priority attention to external and internal customers and their needs.
2. They empower, rather than control, subordinates.
3. They emphasis improvement rather than maintenance.
4. They emphasis prevention.
5. They emphasis collaboration rather than competition.
6. They train and coach, rather than direct and supervise.
7. They learn from the problems.
8. They continually try to improve communications.
9. They continually demonstrate their commitment to quality.
10. They choose suppliers on the basis of quality, not price.
11. They establish organizational systems to support the quality effort.
12. They encourage and recognize team effort.
LEADERSHIP CONCEPTS:
A leader should have the following concepts
1. People, Paradoxically, need security and independence at the same time.
2. People are sensitive to external and punishments and yet are also strongly self
- motivated.
3. People like to hear a kind word of praise. Catch people doing something right, so
you can pat them on the back.
4. People can process only a few facts at a time; thus, a leader needs to keep things simple.
5. People trust their gut reaction more than statistical data.
6. People distrust a leader‘s rhetoric if the words are inconsistent with the leader‘s actions.
THE 7 HABITS OF HIGHLY EFFECTIVE PEOPLE :

22. 1. Be Proactive
2. Begin with the End in mind
3. Put First Things First
4. Think Win – Win
5. Seek First to Understand, then to Be Understood
6. Synergy
7. Sharpen the Saw (Renewal)
ROLE OF SENIOR MANAGEMENT
1. Management by Wandering Around (MBWA).
2. Strategy of problem solving and decision making.
3. Strong information base.
4. Recognition and Reward system.
5. Spending most of the time on Quality.
6. Communication.
7. Identify and encourage potential employee.
8. Accept the responsibility.
9. To play a role model.
10. Remove road blocks.
11. Study TQM and investigate how TQM is implemented elsewhere.
12. Establish policies related to TQM.
13. Establish ‗priority of quality‘ and ‗customer satisfaction‘ as the basic policy.
14. Assume leadership in bringing about a cultural change.
15. Check whether the quality improvement programmes are conducted as planned.
16. Become coaches and cheer leaders to implement TQM.
17. Generate enthusiasm for TQM activities.
18. Visit other companies to observe TQM functioning.
19. Attend TQM training programme.
20. Teach others for the betterment of society and the surroundings.
QUALITY COUNCIL
A quality council is established to provide overall
direction. The council is composed of
 Chief Executive Officer
 Senior Managers
 Coordinator or Consultant
 A representative from the Union
Duties of the council are

23.  Develop the core values, vision statement, mission statement and quality policy statement
 Develop the strategic long term plan with goals and Annual Quality Improvement
Program with objectives
 Create the total education and training plan
 Determine and monitor the cost of poor quality
 Determine the performance measures
 Determine projects those improve the process
 Establish multifunctional project and work group teams
 Revise the recognition and rewards system
A typical meeting agenda will have the following items
 Progress report on teams
 Customer satisfaction report
 Progress on meeting goals
 New project teams
 Benchmarking report
Within three to five years, the quality council activities will become ingrained in the culture
of the organization.
2.2 STRATEGIC QUALITY PLANNING Goals
– Long term planning (Eg : Win the war)
Objectives – Short term planning (Eg : Capture the
bridge) Goals should
 Improve customer satisfaction, employee satisfaction and process
 Be based on statistical evidence
 Be measurable
 Have a plan or method for its achievement
 Have a time frame for achieving the goal
 Finally, it should be challenging yet achievable
There are seven basic steps to strategic quality
planning. a) Customer needs
b) Customer
positioning c) Predict
the future
d) Gap analysis
e) Closing the gap
f) Alignment
g) Implementation
Quality Planning

24. Quality planning is the pre-determined activities in order to achieve conformation to the
requirements. Many organizations are finding that strategic quality plans and business plans
are inseparable.
The quality planning procedure given by Joseph.A.Juran has the following
steps:
· Identify the customers
· Determine their needs
· Translate those needs into our language.
· Develop a product that can respond to those needs
· Optimize the product features to meet our and customer needs
1. It is far from
simple.
2. It is not an objective statistic, but more of feeling and
attitude.
3. Therefore like people's
opinion
Quality Costs:
All organizations make use of the concept of identifying the costs needed to carry out the
various functions – product development, marketing, personnel, production etc., Until the
1950‘s this cost concept had not been extended to quality function, except for the departmental
activities of inspection and testing.
During the 1950‘s the concept of ―Quality Cost emerged. Different people assigned
different
meanings to the term. Some people equated quality cost with the cost of attaining quality;
some people equated the term with the extra incurred due to poor qualit y. But, the widely
accepted thing is ―Quality cost is the extra cost incurred due to poor or bad quality of the
product or service.
Categories of Quality Cost:
Many companies summarize quality costs into four broad
categories. They are,
a) Internal failure costs - The cost associated with defects that are found prior to transfer of
the product to the customer.
b) External failure costs - The cost associated with defects that are found after product is
shipped to the customer.
c) Appraisal costs - The cost incurred in determining the degree of conformance to
quality requirement.
d) Prevention costs - The cost incurred in keeping failure and appraisal costs to a
minimum.
Sometimes we can also include the hidden costs i.e., implicit
costs.
Traditional Quality cost model
Emerging Quality Cost Model
Higher quality doesn't mean higher costs The companies estimate quality costs for the

25. following
reasons :
a) To quantifying the size of the quality problem in the language of money
improves
communication between middle managers and upper
managers. b) To identify major opportunities for cost
reduction.

26. c) To identify the opportunities for reducing customer dissatisfaction and associated threats
to product salability.
Analysis Techniques for Quality Costs:
i. Trend Analysis
ii. Pareto Analysis
DEMING PHILOSOPHY
1. Create and publish the Aims and Purposes of the organization.
2. Learn the New Philosophy.
3. Understand the purpose of Inspection.
4. Stop awarding business based on price alone.
5. Improve constantly and forever the System.
6. Institute Training.
7. Teach and Institute Leadership.
8. Drive out Fear, Create Trust and Create a climate for innovation.
9. Optimize the efforts of Teams, Groups and Staff areas.
10. Eliminate exhortations for the Work force.
11a. Eliminate numerical quotas for the work force.
11b. Eliminate Management by objectives.
12. Remove Barriers THAT ROB PEOPLE OF PRIDE OF
WORKMANSHIP.
13. Encourage Education and Self-improvement for everyone.
14. Take action to accomplish the transformation.
TQM IMPLEMENTATION:
 Begins with Management Commitment
 Leadership is essential during every phase of the implementation process and particularly
at the start
 Senior Management should develop an implementation plan
 Timing of the implementation process is very important
 Formation of Quality Council
 Active involvement of Middle Managers and First Line Supervisors is essential
 Early discussions with the Union is a must
 Communicate TQM to the entire organization
 Training on quality awareness and problem solving
 Customer, Employee and Supplier surveys must be conducted to benchmark
 The council establishes the project teams and work groups and monitors their progress

27. 2.3 QUALITY STATEMENTS
VISION STATEMENT:
 It is a short declaration of what an organization aspires to be
tomorrow. Example :
Disney Theme Park - Happiest place on earth
Polaroid - Instant photography
 Successful visions provide a guideline for decision making
MISSION STATEMENT:
It answers the following questions
 Who we are?
 Who are the customers?
 What we do?
 How we do it?
It describes the function of the organization. It provides a clear statement of purpose
for employees, customers & suppliers
A simpler mission statement is
―To meet customers transportation and distribution needs by being the best at moving their goods
on time, safely and damage free‖
- National Railways
QUALITY POLICY STATEMENT:
It is guide for everyone in the organization as to how they should provide products and
services to the customers.
Common characteristics are
 Quality is first among equals
 Meet the needs of the internal & external customers
 Equal or exceed competition
 Continuously improve the quality
 Utilize the entire workforce

28. 1. Trash removal
Satisfied
5 4 3 2
Dissatisfied
1
2. Personal hygiene 5 4 3 2 1
3. Romance 5 4 3 2 1
4. Thoughtfulness 5 4 3 2 1
5. Listening skills 5 4 3 2 1
6. Faithfulness 5 4 3 2 1
7. Respect for
Mother – in - law 5 4 3 2 1
8. Overall,how satisfied
are you with your
2.4 CUSTOMER SATISFACTION
CUSTOMER PERCEPTION OF QUALITY:
1. Performance
2. Features
3. Service
4. Warranty
5. Price
6. Reputation
FEEDBACK (INFORMATION COLLECTING TOOLS):
Feedback enables organization to
 Discover customer satisfaction
 Discover relative priorities of quality
 Compare performance with the competition
 Identify customer needs
 Determine opportunities for improvement
Listening to the voice of the customer can be accomplished by numerous information
collecting tools.
1. Comment Card
2. Customer Questionnaire
Highly Neutral Highly

29. marriage? 5 4 3 2 1
To make surveys more useful, it is best to remember eight points
 Clients and Customers are not the same
 Surveys raise customers expectations
 How you ask a question will determine how the question is answered
 The more specific the question, the better the answer
 You have only one chance and only 15 minutes
 The more time you spend in survey development, the less time you will spend in data
analysis and interpretation
 Who you ask is as important as what you ask
 Before the data are collected, you should know how you want to analyse and use the data
3. Focus Groups
These groups are very effective for gathering information on customer expectations
and requirements.
4. Toll – Free Telephone Numbers
5. Customer Visits
6. Report Card
7. The Internet and Computers
8. Employee Feedback
9. Mass Customization
2.5 CUSTOMER COMPLAINTS
Actions an organization can take to handle complaints are as follows
 Investigate customers experiences by actively getting feed back, both positive
and negative, and then acting on it promptly
 Develop procedures for complaint resolution that include empowering front – line
personnel.
 Analyze complaints, but understand that complaints do not always fit into neat categories.
 Work to identify process and material variations and then eliminate the root cause.
―More inspection‖ is not corrective action.
 When a survey response is received, a senior manager should contact the customer
and strive to resolve the concern.
 Establish customer satisfaction measures and constant ly monitor them.
 Communicate complaint information, as well as the results of all investigations and
solutions, to all people in the organization.
 Provide a monthly complaint report to the quality council for their evaluation and, if
needed, the assignment of process improvement teams.
 Identify customers‘ expectations beforehand rather than afterward through complaint
analysis.

30. SERVICE QUALITY
Customer service is the set of activities an organization uses to win and retain
customer‘s satisfaction. It can be provided before, during, or after the sale of the product or
exist on its own. Elements of customer service are
Organization
1. Identify each market segment.
2. Write down the requirements.
3. Communicate the requirements.
4. Organize processes.
5. Organize physical spaces.
Customer Care
6. Meet the customer‘s expectations.
7. Get the customer‘s point of view.
8. Deliver what is promised.
9. Make the customer feel valued.
10. Respond to all complaints.
11. Over – respond to the customer.
12. Provide a clean and comfortable customer reception area.
Communication
13. Optimize the trade – off between time and personal attention.
14. Minimize the number of contact points.
15. Provide pleasant, knowledgeable and enthusiastic employees.
16. Write document in customer friendly language.
Front-Line people
17. Hire people who like people.
18. Challenge them to develop better methods.
19. Give them the authority to solve problems.
20. Serve them as internal customers.
21. Be sure they are adequately trained.
22. Recognize and reward performance.
Leadership
23. Lead by example.
24. Listen to the front-line people.
25. Strive for continuous process improvement.
CHARACTERISTICS AND EXPECTATIONS:
----------------------------------------------------------------------------------------------------------------
Characteristic Expectation

31. ---------------------------------------------------------------------------------------------------------------
- Delivery Delivered on schedule in undamaged condition
Installation Proper instructions on setup, or technicians supplied for
complicated products
Use Clearly-written training manuals or instructions provided on
proper use
Field repair Properly-trained technicians to promptly make quality repairs
Customer Service Friendly service representatives to answer questions
Warranty Clearly stated with prompt service on claims
----------------------------------------------------------------------------------------------------------------
2.6 CUSTOMER RETENTION
It means ―retaining the customer‖ to support the business. It is more powerful and effective than
customer satisfaction.
For Customer Retention, we need to have both ―Customer satisfaction & Customer loyalty‖.
The following steps are important for customer retention.
1. Top management commitment to the customer satisfaction.
2. Identify and understand the customers what they like and dislike about the organization.
3. Develop standards of quality service and performance.
4. Recruit, train and reward good staff.
5. Always stay in touch with customer.
6. Work towards continuous improvement of customer service and customer retention.
7. Reward service accomplishments by the front-line staff.
8. Customer Retention moves customer satisfaction to the next level by determining what
is truly important to the customers.
9. Customer satisfaction is the connection between customer satisfaction and bottom line.
2.7 EMPLOYEE INVOLVEMENT
 Employee involvement is one approach to improve quality and productivity.
 It is a means to better meet the organization‘s goals for quality and
productivity.
2.7.1 MOTIVATION
MASLOW’S HIERARCHY OF NEEDS:

32. Self - Actualization
Esteem
Social
Security

33. EMPLOYEE WANTS Survival
---------------------------------------------------------------------------------------------------------------
- Factor Employee Rating Manager Rating
---------------------------------------------------------------------------------------------------------------
- Interesting work 1 5
Appreciation 2 8
Involvement 3 10
Job security 4 2
Good Pay 5 1
Promotion/ growth 6 3
Good working conditions 7 4
Loyalty to employees 8 7
Help with personal problems 9 9
Tactful discipline 10 6
----------------------------------------------------------------------------------------------------------------
ACHIEVING A MOTIVATED WORK FORCE :
The building of a motivated work force if for the most part an indirect process. Concepts to
achieve a motivated work force are as follows:
1. Know thyself.
2. Know your employees.
3. Establish a positive attitude.
4. Share the goals.
5. Monitor progress.
6. Develop interesting work.
 Job rotation
 Job enlargement
 Job enrichment
7. Communicate effectively
8. Celebrate success.
EMPLOYEE SURVEYS :
Employee surveys help managers assess the current state of employee relations, identify trends,
measure the effectiveness of program implementation, identify needed improvements,
and increase communication effectiveness.
STEP 1 : The Quality Council to create a multifunctional team
STEP 2 : The Team will develop survey instrument
STEP 3 : Administer the survey

34. STEP 4 : Results are compiled and analyzed
STEP 5 : Determine areas for improvement
2.7.2 EMPOWERMENT
Empowerment is investing people with authority. It‘s purpose is to tap the enormous reservoir of
potential contribution that lies within every
worker. The two steps to empowerment are
1. To arm people to be successful through coaching, guidance and training.
2. Letting people do by themselves.
The principles of empowering people are given below.
1. Tell people what their responsibilities are.
2. Give authority.
3. Set standards for excellence.
4. Render training.
5. Provide knowledge and information.
6. Trust them.
7. Allow them to commit mistakes.
8. Treat them with dignity and
respect. Three dimensions of empowerment
are
 Capability
 Alignment and
 Trust
2.7.3 TEAMS
 Employee involvement is optimized by the use of teams.
 A team is defined as a group of people working together to achieve common
objectives or goals.
 Teamwork is the cumulative actions of the team during which each member of the
team subordinates his individual interests and opinions to fulfill the objectives or goals
of the
group.
2.7.4 WHY TEAMS WORK:
1. Many heads are more knowledgeable than one.
2. The whole is greater than the sum of its members.
3. Team members develop a rapport which each other.
4. Teams provide the vehicle for improved communication.
TYPES OF TEAMS:
1. Process improvement team.
2. Cross – functional team.
3. Natural work teams.
4. Self – Directed / Self – Managed work teams.

35. CHARACTERISTICS OF SUCCESSFUL TEAMS:
1. Sponsor 2. Team Charter
3. Team Composition 4. Training
5. Ground Rules 6. Clear Objectives
7. Accountability 8.Well-Defined decision procedure
9. Resources 10. Trust
11. Effective Problem Solving 12. Open Communication
13. Appropriate Leadership 14. Balanced Participation
15. Cohesiveness
TEAM MEMBER ROLES:
TEAM LEADER
 Ensures the smooth and effective operation of the team.
 Facilitates the team process.
 Serves as a Contact Point.
 Organizes the implementation of changes.
 Prepares the meeting agenda.
FACILITATOR
 Supports the leader.
 Focuses on the team process.
 Acts as a resource to the team.
 Provides feedback to the team.
RECORDER
 Documents the main ideas of the team‘s discussion, the issues raise, decisions made,
action items etc.
 Presents the documents and distributes the MOM.
 Participates as a team member.
TIMEKEEPER
 Ensures that the team maintains the schedule.
 Participates as a team member.
TEAM MEMBER
 Contributes best, without reservation.
 Respects other people‘s contributions.
 Listens carefully and asks questions.
 Works for consensus on decisions.
 Supports the decision of the team.
 Understands and is committed to the team objectives.

36.  Respects and is tolerant of individual differences.
 Acknowledges and works through conflict openly.
 Carries out assignments.
DECISION MAKING METHODS:
1. Non-decision.
2. Unilateral decision.
3. Handclasp decision.
4. Minority-rule decision.
5. Majority-rule decision.
6. Consensus.
COMMON BARRIERS TO TEAM PROGRESS:
 Insufficient training.
 Incompatible rewards and compensation.
 First-line supervisor resistance.
 Lack of planning.
 Lack of management support.
 Access to information systems.
 Lack of Union support.
 Project scope too large.
 Project objectives are not significant.
 No clear measures of success.
 No time to do improvement work.
2.7.5 RECOGNITION AND REWARD
Recognition is a process by which management shows acknowledgement of an employee‘s
outstanding performance.
Various ways for Recognition and Rewards are
1. Recognition can be expressed using verbal and written praise.
2. Rewards may be in the form of certificates and plaques.
3. Reward is normally in the form of cinema tickets, dinner for family etc.
4. The financial compensation (for recognition) can be paid in terms of increased
salaries, commissions, gain sharing etc.
5. The efforts of employees can be recognized by promotions, special job assignments etc.
6. A letter of appreciation from the CEO or the Top Management will increase the employee‘s
involvement.
7. Reward may be delayed but recognition should be in a timely basis.
8. Rewards should be appropriate to the improvement level.
9. People like to be recognized than any reward.
10. Special forms of recognition include pictures on the bulletin board, articles in news
letters, letter to families etc.
11. Supervisors can give on-the-spot praise for a job which is done well.
EFFECTS OF RECOGNITION AND REWARD SYSTEM :

37. 1. Recognition and reward go together for letting people know that they are valua ble
members for the organization.
2. Employee involvement can be achieved by recognition and reward
system.
3. Recognition and reward system reveals that the organization considers quality
and productivity as important.
4. It provides the organization an opportunit y to thank high
achievers.
5. It provides employees a specific goal to
achieve.
6. It motivates employees to improve the
process.
7. It increases the morale of the
workers.
2.7.6 PERFORMANCE APPRAISAL
The performance appraisal is used to let employees know how they are performing. The
performance appraisal becomes a basis for promotions, increase in salaries, counseling and
other purposes related to an employee‘s future.
IMPORTANCE OF PERFORMANCE APPRAISALS:
1. It is necessary to prevail a good relationship between the employee and the
appraiser.
2. Employee should be informed about how they are performing on a continuous basis, not
just at appraisal time.
3. The appraisal should highlight strength and weakness and how to improve the
performance.
4. Employee should be allowed to comment on the evaluation and protest if
necessary.
5. Everyone should understand that the purpose of performance appraisal is to have
employee involvement.
6. Errors in performance evaluations should be
avoided.
7. Unfair and biased evaluation will render poor rating and hence should be
eliminated.
BENEFITS OF EMPLOYEE INVOLVEMENT:
Employee involvement improves quality and increases productivity
because
 Employees make better decisions using their expert knowledge of the process
 Employees are better able to spot and pin-point areas for improvement.
 Employees are better able to take immediate corrective action.
 Employee involvement reduces labour / management friction.
 Employee involvement increases morale.
 Employees have an increased commitment to goals because they are involved.

38. 2.8 CONTINUOUS PROCESS IMPROVEMENT
Continuous process improvement is designed to utilize the resources of the organization
to achieve a quality-driven culture.
Improvement is made
by
 Viewing all work as process.
 Making all process effective, efficient and adaptable.
 Anticipating changing customer needs.

39.  Controlling in-process performance using measures such as scrap reduction,
control charts etc.
 Eliminating waste and re-work.
 Eliminating non-value added activities.
 Eliminating non-conformities.
 Using Benchmarking.
 Incorporating learned lessons into future activities.
 Using technical tools such as SPC, benchmarking, experimental design, QFD etc.
PROCESS:
Process refers to business and production activities of an organization.
FEEDBACK
INPUT
Materials,
Money,
Information,
Data, etc.
PROCESS
People,
Equipment,
Method,
Procedures,
Environment,
Materials
OUTPUT
Information,
Data,
Product,
Service, etc.
OUTCOMES
CONDITIONS
There are five basic ways for improvement.
 Reduce resources.
 Reduce errors.
Input / Output Process Model
 Meet or exceed expectations of downstream customers.
 Make the process safer.
 Make the process more satisfying to the person doing it.
THE JURAN TRILOGY
1. PLANNING

40.  Determine internal & external customers.
 Their needs are discovered.
 Develop product / service features.
 Develop the processes able to produce the product / service features.
 Transfer plans to operations.
2. CONTROL
Control is used by operating forces to help meet the product, process and service requirements.
It consists of the following steps
1. Determine items to be controlled.
2. Set goals for the controls.
3. Measure actual performance.
4. Compare actual performance to goals.
5. Act on the difference.
3. IMPROVEMENT
Aims to attain levels of performance that are higher than current
levels. It consists of the following steps
 Establishment of quality council.
 Identify the improvement projects.
 Establish the project teams with a project leader.
 Provide the team with the resources.
2.9 THE PDCA CYCLE:
ACT PLAN
PROBLEM SOLVING METHOD :
1. IDENTIFY THE OPPORTUNITY
 Identify the Problem
 Pareto analysis of external alarm signals.
 Pareto analysis of internal alarm signals.
 Proposals from key insiders.

41.  Proposals from suggestion schemes.
 Field study of user‘s needs.
 Comments of key people outside the organization.
 Customer surveys.
 Employee surveys.
 Brainstorming by work groups.
 Form the Team
 Team should be selected.
 Goals and milestones are established.
 Define the Scope.
Criteria for a good problem statement is as follows
 It clearly describes the problem.
 It states the effect.
 It focuses on what is known, unknown etc.
 It emphasizes the impact on the customer.
2. ANALYZE THE CURRENT PROCESS
The objective is to understand the process and how it is currently performed.
Step 1 : The team to develop a process flow diagram.
Step 2 : The target performance measures are defined.
Step 3 : Collection of all available data and
information.
Common items of data and information are
1. Customer information 2. Design information
3. Process information 4. Statistical
information5. Quality information 6. Supplier information
3. DEVELOP THE OPTIMAL SOLUTION(S)
This phase has the objective of establishing potential and feasible solutions and
recommending the best solution to improve the process.
 Creativity plays the major role, and brainstorming is the principal technique.
 There are three types of creativity:
 Create new processes
 Combine different processes
 Modify the existing process
4. IMPLEMENT CHANGES
This phase has the objective of preparing the implementation plan, obtaining approval
and implementing the process improvements.
 Approval of the quality council.
 Obtain the advice and consent of departments, functional areas, teams, individuals etc.
 Monitor the activity.

42. 5. STUDY THE RESULTS
This phase has the objective of monitoring and evaluating the change by tracking and
studying the effectiveness of the improvement efforts.
6. STANDARDIZE THE SOLUTION
 Institutionalize by positive control of the process.
 The quality peripherals – the system, environment and supervision must be certified.
 Operators must be certified.
7. PLAN FOR THE FUTURE
The objective is to achieve improved level of process performance.
 Regularly conduct reviews of progress by the quality council.
 Establish the systems to identify area for future improvements.
 Track performance with respective internal & external customers.
 TQM tools and techniques are used to improve quality, delivery and cost.
2.10 5-S : HOUSEKEEPING
5-S MEANS EVERYTHING IN ITS PLACE
SEIRI
SEITON
SEISO
SEIKETSU
SHITSUKE
 There can be no TQM without 5-S.
 A dirty factory cannot produce quality
products.
CLEARING
ARRANGING
SWEEPING
CLEANLINESS
DISCIPLINE
 Clutter hides problems. A neat workplace promotes easy discovery of abnormalities.
5-S
CONTRIBUTES
TO
SAFETY
QUALITY
PRODUCTIVITY

43. 5-S
VISUAL CONTROL

44. The First S : SEIRI : CLEARING
Take out unnecessary items and throw them away
Factory Floor Office Home
Machines to be Used / Broken Broken toys
scrapped pens
Rejected material Useless paper Old clothes
Expired goods Old diaries Broken suitcases
Broken tools, Broken furnitures
pallets, bins,
trolleys.
Old notices
Flow Chart :
Separating the wanted and unwanted
Junk & waste Repairable Wanted items
No use Repair
Discard To next step

45. Consequences of not practicing SEIRI :
 The unwanted clutters up the place and the wanted are hard to find.
 Every place can only hold so much.
 Clutter sometimes causes misidentification.
The Second S : SEITON : ARRANGING
Arrange everything in proper order so that it can be easily picked up for use.
Factory Floor Office Home
Unlabelled tool crib Unlabelled file cabinet Clutter
Cluttered shelves Cluttered drawer, No orderly
lockers etc. shelves, book cases, arrangement in
tables the rooms
Stores – no clear Records & documents
location system. Not arranged well
Things on the floor File heaps and papers
Consequences of not practicing SEITON :
 Things are seldom available when needed.
 Items are ―lost‘ in stores.
 Items – defectives and good ones get mixed up.
 Accidents or near-accidents occur due to clutter.
 Visual control of the shop floor is not possible.
 Sometimes, production is lost because an item required is available but cannot be found.
 In some offices, Critical Excise records or tax records may not be traceable. This can lead to
finance loss, prosecution or embarrassment.
The Third S : SEISO : SWEEPING
Sweep your workplace thoroughly so that there is no dust anywhere.
Factory Floor Office Home

46. Dirty machines Dirty table & furniture Dirty furniture, floor,
Dust on product window, grills,
parts, R.Mtls. bookshelves.
Dirty jigs, fixtures Dirty office equipments
Dirty walls, roofs Littered floor
Littered floor Dirty windows
Consequences of not practicing SEISO :
 Most machines are affected by dust & dirt and hence their performance may go down.
 Dust and dirt on products, materials, packing boxes etc. will affect either their performance
quality or their aesthetic look.
 Unpleasant to work in.
The Fourth S : SEIKETSU : CLEANLINESS
Washing with a strong overtone of keeping things disinfected as well as free of
hazardous chemicals.
Factory Floor Office Home
Handling hazardous Free of pests Pest control
chemicals Personal hygiene Personal hygiene
Control of fumes,
hazardous dust.
Disinfecting, Personal hygiene
Consequences of not practicing SEIKETSU :
 Good health and safety require the practice of Seiketsu.
 Hazardous chemicals, dusty chemicals, fumes etc. can make it a dangerous place to work in.
 Washing thoroughly and cleaning a place makes the workplace pleasant.
 Personal hygiene is essential for healthy workforce.
The Fifth S : SHITSUKI : DISCIPLINE
Discipline especially with regard to safety rules and punctuality.
Consequences of not practicing SEIKETSU :
 If discipline is not practiced, then the first 4-S would backslide.

47.  Lack of Shitsuki means not following the standards. Then, all activities related to safety
and quality will be affected.
IMPLEMENTING 5-S
1. Top Management resolve and training.
2. Formation of a top level team.
3. Understanding current circumstances.
4. Establishing priorities and targets.
5. Forming sub-teams and training.
6. Major cleaning.
7. Establishing improvement plans in each priority area.
8. Implementing the plan.
9. Verifying results.
10. Standardizing.
11. Establishing full control.
12. Looking for further improvements.
2.11 KAIZEN
Kaizen is a Japanese word for the philosophy that defines management‘s roles in
continuously encouraging and implementing small improvements involving everyone.
It focuses on simplification by breaking down complex progress into their sub –
processes and then improving them.
The Kaizen improvement focuses on the use of :
 Value – added and non – value work activities.
 Muda, which refers to the seven classes of waste – over-production, delay, transportation,
processing, inventory, wasted motion, and defective parts.
 Principles of motion study and the use of cell technology.
 Principles of materials handling and use of one – piece flow.
 Documentation of standard operating procedures.
 The five S‘s for workplace organization.
 Visual management.
 Just – in – time principles.
 Poka – Yoke.
 Team dynamics.
RE-ENGINEERING
It is the fundamental rethinking and radical redesign of business processes to achieve
dramatic improvements in critical measures of performance.
2.12 SUPPLIER PARTNERSHIP
The suppliers should be treated as partners to achieve the same quality level as attained within
the organization.

48. The following forces need Supplier Partnership to improve quality, reduce costs and
increase market share.
 Deming Philosophy (Deming‘s 4
th
point)
 Just-in-time
 Continuous process improvement
 ISO 9000
CUSTOMER – SUPPLIER RELATIONS:
Dr. Kaoru Ishikawa has given ten principles of customer-supplier relations. They are
1. Both the customer and supplier are fully responsible for the control of quality.
2. Both the customer and supplier should be independent of each other.
3. The customer is responsible for providing the supplier with clear and sufficient requirements
so that the customer can know precisely what to produce.
4. Both the customer and supplier should enter into a non-adversarial contract.
5. The supplier is responsible for providing the quality that will satisfy the customer.
6. Both the customer and supplier should decide the method to evaluate the quality of the
product or services.
7. Both the customer and supplier should establish in the contract the method by which they can
reach an amicable settlement in case of any dispute.
8. Both the customers and supplier should continually exchange information.
9. Both the customer and supplier should perform business activities.
10. Both the customer and supplier should have the best interest of the end user in mind.
2.13 PARTNERING
Partnering is a relationship between two or more parties based upon trust, dedication to
common goals.
The benefits of partnering are
 Improved quality
 Increased efficiency
 Lower cost
 Increased opportunity for innovation
 Continuous improvement
The three key elements to a partnership relationship are
 Long term commitment
 Trust
 Shared Vision
SOURCING
The three types of sourcing are
 Sole sourcing

49.  Multiple sourcing
 Single sourcing
2.14 SUPPLIER SELECTION
The suppliers should be selected with the following ten conditions
The supplier should understand clearly the management philosophy of the organization.
1. The supplier should have stable management system.
2. The supplier should maintain high technical standards.
3. The supplier should provide the raw materials and parts which meet quality
specifications required by the purchaser.
4. The supplier should have the required capability in terms of production.
5. The supplier should not leak out the corporate secrets.
6. The supplier should quote right price and should meet the delivery schedule. The
supplier should be accessible with respect to transportation and communication.
7. The supplier should be sincere in implementing the contract provisions.
8. The supplier should have an effective quality system such as ISO / QS 9000.
9. The supplier should be renowned for customer satisfaction.
SUPPLIER CERTIFICATION:
A certified supplier is one which, after extensive investigation, is found to supply material
of such quality that is not necessary to perform routine testing.
The Eight criteria for supplier certification are
1. No product related lot rejections for atleast 1 year.
2. No non-product related rejections for atleast 6 months.
3. No production related negative incidents for atleast 6 months.
4. Should have passed a recent on-site quality system evaluation.
5. Having a fully agreed specifications.
6. Fully documented process and quality system.
7. Timely copies of inspection and test data.
8. Process that is stable and in control.
2.15 SUPPLIER RATING:
Supplier Rating is done
 To obtain an overall rating of supplier performance.
 To communicate with suppliers regarding their performance.
 To provide each supplier with a detailed and true record of problems for corrective
action.
 To enhance the relationship between the buyer and the supplier.
RELATIONSHIP DEVELOPMENT :
For establishment of supplier relationship, the following are
necessary. (a) Partnering

50. (b) Supplier selection
(c) Principles of customer / supplier relations
(d) Certification
(e) Periodic rating
For relationship development, the following are necessary.
(a) Inspection
 100% inspection
 Sampling
 Audit
 Identity check
(b) Training
(c) Teams
(d) Recognition and Reward
PERFORMANCE MEASURES
Performance measures are required for the managers for managing an organization
perfectly. Performance measures are used to achieve the following objectives.
 To establish performance measures and reveal trend.
 To identify the processes to be improved.
 To determine the process gains and losses.
 To compare the actual performance with standard performance.
 To provide information for individual and team evaluation.
 To determine overall performance of the organization.
 To provide information for making proper decisions.
WHAT SHOULD BE MEASURED?
Human resources
1. Lost time due to accidents, absenteeism.
2. Employee turnover.
3. Employee satisfaction index.
4. Training cost per employee.
5. Number of grievances.
Customers
1. Number of complaints from customers.
2. Number of on-time deliveries.
3. Warranty data.
4. Dealer satisfaction.
Production
1. Inventory.
2. SPC Charts.

51. 3. Amount of scrap / rework.
4. Machine down time.
Research and Development
1. New product time to market.
2. Design change orders.
3. Cost estimating errors.
Suppliers
1. On-time delivery.
2. Service rating.
3. Quality performance.
4. Average lead time.
Marketing / Sales
1. Sales expense to revenue.
2. New product sales to total sales.
3. New customers.
Administration
1. Revenue per employee.
2. Purchase order error.
3. Billing accuracy.
4. Cost of poor quality.
STRATEGY :
The quality council has the overall responsibility for the performance measures.It ensures that
all the measures are integrated into a total system of measures.
A typical system contains the following function
 Quality
 Cost
 Flexibility
 Reliability
 Innovation
PERFORMANCE MEASURE PRESENTATION:
There are six basic techniques for presenting performance measures. They are
1. Time series graph.
2. Control charts.
3. Capability Index.
4. Taguchi‘s loss function.
5. Cost of poor quality.
6. Malcolm Baldrige National Quality Award.

52. In MBNQA, five categories are analyzed. They are Manufacturing,Service,Small
business.Health care,Education.
UNIT III
UNIT III TQM TOOLS & TECHNIQUES I
The seven traditional tools of quality – New management tools – Six-sigma:
Concepts,methodology, applications to manufacturing, service sector including IT
– Bench marking– Reason to bench mark, Bench marking process – FMEA –
Stages, Types.
3.1 TQM TOOLS (SEVEN TOOLS OF QUALITY)
1. PARETO DIAGRAM
2. FLOW DIAGRAM
3. CAUSE AND EFFECT DIAGRAM
CAUSE AND EFFECT DIAGRAM
DRAUGHT
SYSTEM IMPROPER
FUNCTION
FUEL
NON-UNIFORM
IMPROPER
FUNCTION
OF FD FAN
OF SA FAN INCREASED
MOISTURE
CONTENT
FLOW OF FUEL
NATURE OF
BAGASSE
FIBRE
IMPROPER
FUNCTION
OF ID FAN
INCREASED
SUGAR
CONTENT
VARIATION IN
STEAM
GENERATION
VARIATION IN
WATER LEVEL
IN DRUM
VARIATION
IN BOILER
WATER TDS
VARIATION
IN BOILER
WATER pH
VARIATION IN
FEED WATER
TEMPERATURE
WATER BOILER
WATER
QUALITY
STEPS IN CONSTRUCTING A CAUSE & EFFECT DIAGRAM :
a. Define the problem or effect to be analyzed.
b. Form the team to perform the analysis. Often the team will uncover potential causes
through brainstorming.

53. c. Draw the effect box and the centerline.
d. Specify the major potential cause categories and join them as boxes connected to
the centerline.
e. Identify the possible causes and classify them into the categories in step d. Create
new categories, if necessary.
f. Rank order the causes to identify those that seem most likely to impact the
problem. g. Take corrective action.
4. CHECK SHEETS
CHECK SHEET
Product : Bicycle
Nonconformity Type Check Total
---------------------------------------------------------------------------------------------------------------
- Blister IIII IIII IIII IIII I 21
Light spray IIII IIII IIII 15
Drips IIII IIII IIII IIII IIII 25
Others IIII IIII IIII IIII IIII 25
---------------------------------------------------------------------------------------------------------------
- TOTAL 86
----------------------------------------------------------------------------------------------------------------
5. HISTOGRAM
Number of Errors Tally of Number of Errors
------------------------------- -------------------------------------------------------------------
0 1 3 0 1 0 1 0 Number Non Tabulation Freq.
1 5 4 1 2 1 2 0 -conforming
1 0 2 0 0 2 0 1 -------------------------------------------------------------------
2 1 1 1 2 1 1 0 IIII IIII IIII 15
0 4 1 3 1 1 1 1 IIII IIII IIII IIII 20
1 3 4 0 0 0 0 2 IIII III 8

54. 6. CONTROL CHARTS
Samplequalitycharacteristic
1 3 0 1 2 2 3 3 IIII 5
------------------------------- 4 III 3
5 I 1
-------------------------------------------------------------------
20
15
Frequency
10
5
0
0 1 2 3 4 5
Number Non-confirming
Upper control limit
Centre line
Lower control limit
Sample number or time

55. A typical control chart
7. SCATTER DIAGRAM
In scatter diagram, three types of co-relations exist.
1. Positive correlation.
2. Negative correlation.
3. No correlation.
3.2 NEW MANAGEMENT TOOLS
1. WHY, WHY
2. FORCED FIELD ANALYSIS
 Define the objective.
 Determine criteria for evaluating the effectiveness of the improvement action.
 Brainstorm the forces.
 Prioritize the forces from greatest to least.
 Take action.
Objective : Stop Smoking
---------------------------------------------------------------------------------------------------------------
- Promoting Forces Inhibiting Forces
---------------------------------------------------------------------------------------------------------------
- Poor Health Habit
Smelly Clothing Addiction
Poor Example Taste
Cost Stress
Impact on Others Advertisement
----------------------------------------------------------------------------------------------------------------
3. NOMINAL GROUP TECHNIQUE
4. AFFINITY DIAGRAM
5. INTER-RELATIONSHIP DIGRAPH
6. TREE DIAGRAM
7. MATRIX DIAGRAM
8. PRIORITIZATION MATRICES
9. PROCESS DECISION PROGRAM CHART
10. ACTIVITY NETWORK DIAGRAM
STATISTICAL FUNDAMENTALS

56. Statistics is defined as the science that deals with the collection, tabulation, analysis,
interpretation and presentation of quantitative data.Data collected for quality control purposes
are obtained by direct observation and are classified as
1. Variables (Measurable quality characteristics like length measured in
metres)
2. Attributes (Quality characteristic which are classified as either conforming (or)
non- conforming to specifications, such as ―go & no-go‖ gauge.
MEASURES OF CENTRAL TENDENCY AND DISPERSION
There are two important analytical methods of describing a collection of data
as
1. Measures of central tendency.
2. Measures of dispersion.
A measure of central tendency of a distribution is a numerical value that describes how the
data tend to build up in the centre. There are three measures in quality as
1. Average
2. Median
3. Mode
Average is the sum of observations divided by the number of
observations. i = n
Σ X i
Average = X = i = 1
n
where, n = number of observations
X i = observed value
Median is the value which divides a series of ordered observations so that the number of items
above it is equal to the number of items below it.
Mode is the value which occurs with the greatest frequency in a set of numbers. Mode can
again classified as
 No mode
 Uni mode
 Bi mode

57.  Multimode
Measure of dispersion describes how the data are spread out on each side of the
central value.The two measures of dispersion are
1. Range
2. Standard Deviation
Range is the difference between the largest and smallest values of observations in a series of
numbers.Range = R = X h – X l Where, R = Range
X h = highest observation in a
seriesX l = lowest observation in a series
Standard Deviation measures the spreading tendency of the data. Larger the standard deviation,
greater the variability of data.
i = n
Σ (X i – X)
2
S = i = 1
n - 1
where S = sample standard
deviation
X i = observed value
n = number of observations
POPULATION AND SAMPLE
In order to construct a frequency distribution of the outer diameter of shafts, a small portion
(or) sample is selected to represent all the shafts. The population is the whole collection of
shafts.The population may be an hour‘s production, a week‘s production, 10000 pieces and so
on.It is not possible to measure all of the population. Hence, we go for sampling.
Sampling becomes necessary
1. When it is impossible to measure the entire population.
2. When it is more expensive to observe all the data.
3. When the required inspection destroys the product.
4. When a test of the entire population may be too dangerous as in the case of new
medical drug.

58. X is for sample average or sample mean.
µ is for population mean.
S is for sample standard deviation.
σ is for population standard deviation.
NORMAL CURVE
Normal curve is common type of population. The normal curve is symmetrical, unimodal, bell –
shaped distribution with the mean, median and mode all having the same value.
LSL, LCL
SPEC.
MEAN USL, UCL
PROCESS
AVERAGE
6
TOLERANCE
Figure 3.2 : Normal curve tolerance limits
CONTROL CHARTS FOR VARIABLES AND ATTRIBUTES
Variation is a law of nature because no two natural items in any category are the
same. Variations are due to the following reasons.
1. Chance causes or Natural causes.
2. Assignable causes.
Chance causes of variation are inevitable. Chance causes affect almost every production
process and are inherent in the process. They are purely random, unidentifiable sources of
variations.Hence, when only chance causes are present in a process, the process is said to be in
Statistical Control.
Assignable causes result in unnatural variations. The sources of variations may be due
to
 Equipments

59.  Materials
 Environment
 Operator etc.
The Control chart is used to look at variations, seek assignable causes and chance causes. The
control chart is a line chart with control limits. All control charts have three basic components.
1. A centre line, usually the mathematical average of all the samples plotted.
2. Upper and Lower Control Limits that define the constraints of common cause variations.
3. Performance data plotted over time.
A typical control chart is a graphic display of a quality characteristic that has been measured
or
computed from a sample versus sample number or time. If the process is in control, nearly
all of the sample points will fall between Upper Control Limit (UCL) and Lower Control
Limit (LCL).
CONTROL CHART FOR VARIABLES
1. Mean chart – X chart & Range Chart – R
Chart
X
X = ------
N
Where, N = Total number of observations.
R n = Sample size (for finding out the value of A2
R = ------ and D4 and D3 from the table)
N
Control limits for the charts are given by the following equation.
X – Chart R - Chart
CL = X CL = R
UCL X = X + A2. R UCL R = D4. R
LCL X = X - A2. R LCL R = D3. R
2. Mean chart – X chart & Standard Deviation chart – S Chart
X

60. X = ------
N
Where, N = Total number of observations.
S n = Sample size (for finding out the value of A3
S = ------ and B4 and B3 from the table)
N
Control limits for the charts are given by the following equation.
X – Chart S - Chart
CL = X CL = S
UCL X = X + A3. S UCL S = B4. S
LCL X = X – A3. S LCL S = B3. S
CONTROL CHART FOR ATTRIBUTES
1. p chart
2. np chart
3. c chart
4. u chart
3.2.1 SIX SIGMA
Define - improvement opportunity with an emphasis on increasing customer
satisfaction. Measure - determine process capability
Analyze - identify the vital few process input variables that affect key product output variables
(Finding the knobs.
Improve - Make changes to process settings, redesign processes, etc. to reduce the number
of defects of key output variables.
Control - Implement process control plans, install real-time process monitoring tools,
standardize processes to maintain levels.
3.3 BENCHMARKING
Benchmarking is a systematic method by which organizations can measure themselves against
the best industry practices.
 Benchmarking is a systematic search for the best practices, innovative ideas, and
highly effective operating procedures.

61. BENCHMARKING CONCEPT
What is our performance
level ?
How do we do it ?
What are others
performance levels ?
How did they get there ?
Creative
Breakthrough Performance
3.3.1 REASONS TO BENCHMARK:
 It is a tool to achieve business and competitive objectives
 It can inspire managers (and Organizations) to compete
 It is time and cost effective
 It constantly scans the external environment to improve the process
 Potential and useful technological breakthroughs can be located and adopted early
3.3.2 PROCESS OF BENCHMARKING
The following six steps contain the core techniques of Benchmarking
1. Decide what to benchmark
 Benchmarking can be applied to any business or production process
 The strategy is usually expressed in terms of mission and vision statements
 Best to begin with the mission and critical factors
 Choosing the scope of the Benchmarking study
 Pareto analysis – what process to investigate

62.  Cause and Effect diagram – for tracing outputs back
2. Understand current performance
 Understand and document the current process
 Those working in the process are the most capable of identifying and
correcting problems
 While documenting, it is important to quantify
 Care should be taken during accounting information
3. Plan
 A benchmarking team should be chosen
 Organizations to serve as the benchmark need to be identified
 Time frame should be agreed upon for each of the benchmarking tasks
There are three types of benchmarking
a. Internal
b. Competitive
c. Process
4. Study Others
Benchmarking studies look for two types of information
 How best the processes are practiced
 Measurable results of these practices
Three techniques for conducting the research are
 Questionnaires
 Site visits
 Focus groups
5. Learn from the data
Answering a series of questions like
 Is there a gap between the organization‘s performance and the performance of the best
- in-class organizations?
 What is the gap? How much is it?
 Why is there a gap? What does the best-in-class do differently that is better?
 If best-in-class practices were adopted, what would be the resulting
improvement? Benchmarking studies can reveal three different outcomes
 Negative gap
 Parity
 Positive gap
6. Using the findings
The objective is to close the gap. For this
 Findings must be communicated to the people within the organization
 Action plans must be developed to implement new processes

63. Groups that must agree on the change
 Process owners
 Upper management
Steps for the development and execution of action plans are
1. Specify tasks
2. Sequence tasks
3. Determine resources needs
4. Establish task schedule
5. Assign responsibility for each task
6. Describe expected results
7. Specify methods for monitoring results
PITFALLS AND CRITICISMS OF BENCHMARKING:
 Idea of copying others
 It is not a cure or a business philosophy
 Some process have to be benchmarked repeatedly
 It is not a substitute for innovation
3.4 FAILURE MODE AND EFFECTS ANALYSIS(FEMA)
FMEA is an analytical technique that combines the technology and experience of people
in identifying foreseeable failure modes of a product or process and planning for its elimination.
It is a group of activities comprising the following:
1. Recognize the potential failure of a product or process.
2. Identify actions that eliminate / reduce the potential failure.
3. Document the process.
Two important types of FMEA are
 Design FMEA
 Process FMEA
INTENT OF FMEA :
 Continually measuring the reliability of a machine, product or process.
 To detect the potential product - related failure mode.
 FMEA evaluation to be conducted immediately following the design phase.
BENEFITS OF FMEA:
 Having a systematic review of components failure modes to ensure that any
failure produces minimal damage.
 Determining the effects of any failure on other items.

64.  Providing input data for exchange studies.
 Determining how the high-failure rate components can be adapted to high-
reliability components.
 Eliminating / minimizing the adverse effects that failures could generate.
 Helping uncover the misjudgements, errors etc.
 Reduce development time and cost of manufacturing.
FMEA TEAM :
Engineers from
- Assembly - Manufacturing - Materials - Quality
- Service - Supplier - Customer
FMEA DOCUMENTATION :
The purpose of FMEA documentation is
 To allow all involved Engineers to have access to others thoughts
 To design and manufacture using these collective thoughts (promotes team approach)
UNIT IV
UNIT IV TQM TOOLS & TECHNIQUES II
Quality circles – Quality Function Deployment (QFD) – Taguchi quality loss
function – TPM – Concepts, improvement needs – Cost of Quality – Performance
measures.
4.2 QUALITY FUNCTION DEPLOYMENT
 Quality Function Deployment is a planning tool used to fulfill customer expectations.
 Quality Function Deployment focuses on customer expectations or requirements,
often referred to as voice of the customer.
QFD TEAM :
There are two types of teams namely
1. Team for designing a new product
2. Team for improving an existing product
BENEFITS OF QFD :
1. Improves Customer satisfaction
 Creates focus on customer requirements

65.  Uses competitive information effectively
 Prioritizes resources
 Identifies items that can be acted upon
2. Reduces Implementation Time
 Decreases midstream design changes
 Limits post introduction problems
 Avoids future development redundancies
3. Promotes Team Work
 Based on consensus
 Creates communication
 Identifies actions
4. Provides Documentation
 Documents rationale for design
 Adds structure to the information
 Adapts to changes (a living document)
HOUSE OF QUALITY :
Interrelationship
Between
Technical Descriptors

66. CustomerRequirements
(Voiceofthecustomer)
Prioritized
CustomerRequirements
Technical Descriptors
(Voice of the organization)
Relationship between
Requirements and
Descriptors
Prioritized
Technical Descriptors
THE STEPS IN BUILDING A HOUSE OF QUALITY ARE :
1. List Customer Requirements
(WHAT‘s)
2. List Technical Descriptors
(HOW‘s)
3. Develop a Relationship Matrix Between WHAT‘s and
HOW‘s
4. Develop an Inter-relationship Matrix between
HOW‘s
5. Competitive
Assessments
a. Customer Competitive
Assessments b. Technical
Competitive Assessments
6. Develop Prioritized Customer
Requirements
7. Develop Prioritized Technical
Descriptors
4.3 TAGUCHI’S QUALITY LOSS FUNCTION

67. Taguchi‘s Quality Loss Function concept combines cost, target and variation in one
metric
with specifications being of secondary
importance.
Taguchi has defined quality as the loss imparted to society from the time a product
is shipped. Societal losses include failure to meet customer requirements, failure to meet
ideal performance and harmful side effects.

68. Loss(Rs)
 CUSTOMERS PERCEIVE QUALITY AS MEETING THE TARGET
RATHER THAN JUST MEETING THE SPECIFICATIONS.
There are three common quality loss functions
1. Nominal - the - best.
2. Smaller - the - better.
3. Larger - the - better.
NOMINAL – THE – BEST :
Although Taguchi developed so many loss functions, many situations are approximated by
the quadratic function which is called the Nominal – the – best type.
The quadratic function is shown in figure. In this situation, the loss occurs as soon as the
L
LSL USL
A
0
τ - ∆ τ
Performance Characteristic
Quadratic Loss Function
Y
τ + ∆
performance characteristic, y, departs from the target
τ. At τ, the loss is Rs. 0.
At LSL (or) USL, the loss is Rs. A.
The quadratic loss function is described by the equation L = k (y - τ)
2
. Where,
L = cost incurred as quality deviates from the
target. y = Performance characteristic

69. Loss(Rs)
τ = target
k = Quality loss coefficient.
The loss coefficient is determined by setting ∆ = (y – τ), the deviation from the target. When ∆ is
the USL (or) LSL, the loss to the customer of repairing (or) discarding the product is Rs. A.
Thus,
K = A / (y – τ)
2
= A / ∆
2
.
SMALLER – THE – BETTER :
The following figure shows the smaller – the – better concepts.
L
A
y
0 y
Performance Characteristic
Smaller-the-better
The target value for smaller – the – better is 0. There are no negative values for the
performance characteristic.
The radiation leakage from a microwave appliance, the response time for a computer, pollution
from an automobile, out of round for a hole etc. are the performance characteristics for this
concept.
LARGER – THE – BETTER :
The following figure shows the concept of the Larger – the –
better.

70. Loss(Rs)
L
A
y
0
y
Performance Characteristic
In the Larger – the – better concept, the target value is ∞ (infinity), which gives a zero
loss. There are no negative values and the worst case is at y = 0. Actually, larger – the – better
is the reciprocal of smaller – the – better. The performance characteristics in Larger – the –
better are bond strength of adhesives, welding strength etc.
4.4 TOTAL PRODUCTIVE MAINTENANCE (TPM)
Total Productive Maintenance (TPM) is defined as keeping the running plant and
equipment at its highest productive level with the co-operation of all areas of the
organization.
Predictive and Preventive maintenance are essential to building a foundation for a
successful TPM environment. Predictive Maintenance is the process of using data and
statistical tools to determine when a piece of equipment will fail. Preventive Maintenance
is the process of periodically performing activities such as lubrication on the equipment to
keep it running.
OBJECTIVES OF TPM :
1. To maintain and improve equipment capacity.

71. 2. To maintain equipment for life.
3. To use support from all areas of the operation.
4. To encourage input from all employees.
5. To use teams for continuous improvement.
TPM PHILOSOPHY – CONCEPT OF TPM :
Total Productive Maintenance (TPM) is an extension of the Total Quality Management
(TQM) philosophy to the maintenance function.
TPM has the following steps:
1. Management should learn the new philosophy of TPM.
2. Management should promote the new philosophy of TPM.
3. Training should be funded and developed for everyone in the organization.
4. Areas of needed improvement should be identified.
Loss measurements to identify improvement needs are
 Down time losses
 Reduced speed losses
 Poor quality losses
5. Performance goals should be formulated.
6. An implementation plan should be developed.
7. Autonomous worth groups should be established.
4.5 COST OF QUALITY
Many companies summarize quality costs into four broad
categories. They are,
a) Internal failure costs - The cost associated with defects that are found prior to transfer
of the product to the customer.
b) External failure costs - The cost associated with defects that are found after product
is shipped to the customer.
c) Appraisal costs - The cost incurred in determining the degree of conformance to
quality requirement.
d) Prevention costs - The cost incurred in keeping failure and appraisal costs to a
minimum. Sometimes we can also include the hidden costs i.e., implicit costs.
Traditional Quality cost model

72. Emerging Quality Cost Model
Higher quality doesn't mean higher costs
The companies estimate quality costs for the following reasons :
a) To quantifying the size of the quality problem in the language of money
improves communication between middle managers and upper managers.
b) To identify major opportunities for cost reduction.
c) To identify the opportunities for reducing customer dissatisfaction and associated threats to
product salability.

73. UNIT V QUALITY SYSTEMS
UNIT V
Need for ISO 9000- ISO 9000-2000 Quality System – Elements, Documentation, Quality
auditing- QS 9000 – ISO 14000 – Concepts, Requirements and Benefits – Case
studies of TQM implementation in manufacturing and service sectors including IT.
5.2 ISO 9000 STANDARDS
ISO 9000
ISO 9001
ISO 9002
ISO 9003
ISO 9001
Design, Development, Production, Installation & Servicing
ISO 9002
Production, Installation & Servicing
ISO 9003
Inspection & Testing
ISO 9004
Provides guidelines on the technical, administrative and human factors affecting the product
or services.
BENEFITS OF ISO 9000 STANDARDS :

74.  Achievement of international standard of quality.
 Value for money.
 Customer satisfaction.
 Higher productivity.
 Increased profitability
 Improved corporate image
 Access to global market
 Growth of the organization
 Higher morale of employees
5.2.1 CLAUSES (ELEMENTS) OF ISO 9000 (During the year 1987)
4.1 Management Responsibility


Adequate resources for the verification
activities
Need for trained personnel

Work and verification activities including audits
A Management Representative to be identified
 Review the Quality System performance
periodically
and customer complaints
4.2 Quality System
4.3 Contract review
4.4 Design Control
4.5 Documents Control
4.6 Purchasing
4.7 Purchaser – Supplied Product
4.8 Product Identification and Traceability
4.9 Process Control
4.10 Inspection and Testing
4.11 Inspection Measuring and Test Equipment
4.12 Inspection and Test Status
4.13 Control of Non – Conforming Product
4.14 Corrective Action
4.15 Handling, Storage, Packaging and Delivery
4.16 Quality Records
4.17 Internal Quality Audits
4.18 Training
4.19 Servicing
4.20 Statistical Techniques
CLAUSES (ELEMENTS) OF ISO 9000 (During the year 2000)
1. Scope
2. Normative Reference
3. Terms and Definitions
4. Quality Management System (QMS)

75. General Requirements
Documentation
5. Management Responsibility
Management Commitment
Customer Focus
Quality Policy
Planning
Responsibility, Authority and Communication
Management Review
6. Resource Management
Provision of Resources
Human Resources
Infrastructure
Work Environment
7. Product Realization
Planning of Product
Realization Customer related
processes Design and
Development Purchasing
Production and Service Provision
Control of Monitoring and Measuring devices
8. Monitoring and Measurement
General
Monitoring and Measurement
Control of Non-Conforming
Product Analysis of Data
Improvement
IMPLEMENTATION OF QUALITY MANAGEMENT SYSTEM :
1. Top Management Commitment
2. Appoint the Management Representative
3. Awareness
4. Appoint an Implementation Team
5. Training
6. Time Schedule
7. Select Element Owners
8. Review the Present System
9. Write the Documents
10. Install the New System
11. Internal Audit
12. Management Review
13. Pre-assessment
14. Registration

76. PITFALLS OF SUCCESSFUL IMPLEMENTATION :
1. Using a generic documentation program or another organization‘s documentation
program
2. Over-documentation or documentation that is too complex
3. Using External Consultants without involvement
4. Neglecting to obtain top management‘s involvement
5. Developing a system that does not represent what actually occurs
5.2.2 DOCUMENTATION
In every organization, the quality system must be documented properly. The documentat ion
of the system can be seen as a hierarchical format as shown.
1 POLICY
2 PROCEDURE
3 PRACTICE
4 PROOF
5.2.3 QUALITY AUDITING
The term Audit refers to a regular examination and checking of accounts or financial
records, settlement or adjustment of accounts.
It also refers to checking, inspection and examination of Production Processes.
PURPOSE OF QUALITY AUDIT :
 To establish the adequacy of the system.
 To determine the effectiveness of the system.
 To afford opportunities for system analysis.
 To help in problem solving.
 To make decision making easier etc.

TYPES OF QUALITY AUDIT :
1. First – Party Audit.
2. Second – Party Audit.
3. Third – Party Audit.

77. Quality audit can also be classified on the basis of the area taken into account for the audit
such as
 System Audit.
 Process Audit.
 Product Audit.
 Adequacy Audit.
 Compliance Audit.
5.3 ISO 14000 – ENVIRONMENTAL MANAGEMENT SYSTEM
The overall aim of the Environmental Management systems is to provide protection to
the environment and to prevent pollution.
 The success of ISO 9000 along with increased emphasis on Environmental issues were
instrumental in ISO‘s decision to develop Environmental Management Standards.
 In 1991, ISO formed the Strategic Advisory Group on the Environment (SAGE) which
led to the formation of Technical Committee (TC) 207 in 1992.
 Mission of TC207 is to develop standards for an Environmental Management System
(EMS) which was identified as ISO 14000.
 TC 207 has Established six sub-committees
1. Environmental Management System (EMS)
2. Environmental Auditing (EA)
3. Environmental labeling (EL)
4. Environmental Performance Evaluation (EPE)
5. Life-Cycle Assessment (LCA)
6. Terms & Definitions
Environmental Management System (EMS) :
EMS has two Evaluation Standards. They are
1. Organization Evaluation Standards
2. 2. Product Evaluation Standards
5.3.1 REQUIREMENT OF ISO 14001
There are six elements
1. GENERAL REQUIREMENTS
 EMS should include policy, planning implementation & operation, checking &
corrective action, management review.
2. ENVIRONMENTAL POLICY (Should be based on mission)

78.  The policy must be relevant to the organization‘s nature.
 Management‘s Commitment (for continual improvement & preventing pollution).
 Should be a framework (for Environmental objectives & Targets).
 Must be Documented, Implemented, & Maintained.
3. PLANNING
 Environmental Aspects
 Legal & other Requirements
 Objectives & Targets
 Environmental Management Programs
4. IMPLEMENTATION & OPERATION
 Structure & Responsibility
 Training, Awareness & Competency
 Communication
 EMS Documentation
 Document Control
 Operational Control
 Emergency Preparedness & Response
5. CHECKING & CORRECTIVE ACTION
 Monitoring & Measuring
 Nonconformance & Corrective & Preventive action
 Records
 EMS Audit
6. MANAGENMENT REVIEW
 Review of objectives & targets
 Review of Environmental performance against legal & other requirement
 Effectiveness of EMS elements
 Evaluation of the continuation of the policy
5.3.2 BENEFITS OF ENVIRONMENTAL MANAGEMENT SYSTEM :
GLOBAL BENEFITS
 Facilitate trade & remove trade barrier
 Improve environmental performance of planet earth
 Build consensus that there is a need for environmental management and a common
terminology for EMS
ORGANIZATIONAL BENEFITS
 Assuring customers of a commitment to environmental management
 Meeting customer requirement
 Improve public relation
 Increase investor satisfaction
 Market share increase
 Conserving input material & energy
 Better industry/government relation

79.  Low cost insurance, easy attainment of permits & authorization
CASE STUDIES
Hazard Analysis of Critical Control Points
(HACCP)
Hazard Analysis of Critical Control Points (HACCP), enforced by such agencies as the US
Department of Agriculture's Food and Safety Inspection Service (FSIS) and the Food and Drug
Administration (FDA), is a scientific process control system for eliminating contaminants at critical
areas in the food production and distribution process.
HACCP helps to prevent, as close to 100 percent as possible, harmful contamination in the food
supply. To ensure safer food, HACCP requires the following seven principles to be followed:
Conduct a hazard analysis
Identify critical control points
(CCPs)
Establish critical limits for CCPs
Establish monitoring procedures
Establish corrective actions
Establish verification procedures
Establish record keeping
procedures
HACCP requirements, endorsed by the United Nations Codex Alimentarius, European
Union, Canada, Australia, New Zealand and Japan, apply to meat, seafood and poultry
plants; grocery stores; restaurants; and other food processing and handling facilities.
AS9100
AS9100, released in 1999 and revised in 2001 to align with ISO 9001:2000, is the
international ISO 9000 derivative for suppliers to the aerospace industry. AS9100 takes the
ISO
9001:2000 quality management systems standard covering every step and department of the
manufacturing process, and inserts aerospace industry-specific requirements. AS9100 also addresses
flowdown of aerospace prime contractors‘ quality management system requirements to suppliers
and their subcontractors. Flowdown includes specifications for parts or assembly designs,
characteristics,
inspections, and other process functions and product
features.
The prime aerospace contractors consider AS9100 a major step in the history of quality
management in the aerospace field. Government agencies, such as the Defense Department and the
Federal Aviation Administration (FAA), also support AS9100, though suppliers still have to meet
additional federal requirements. The major difference is a drop in compliance costs and time for
suppliers, due to the elimination of multiple audited governmental standards. This industry-
generated standard also takes the place of programs the government has dropped.

80. AS9100 is designed to reduce defects in the supplier chain, continually improve quality and boost c
ustomer satisfaction. By becoming registered to AS9100 and ISO 9000, companies dealing with
aerospace prime contractors and the government enjoy a competitive advantage. The
regulatory burden is lightened, so suppliers can spend more time improving the manufacturing
process in an industry that puts a top priority on safety and quality.

81. CE Marking
The CE Marking is required to sell any product manufactured or distributed under European
Union (EU) New Approach Directives in the European Economic Area (EEA). The EEA consists of
the 27-nation EU. In addition, Switzerland, although part of European Free Trade
Association (EFTA), is not part of EEA. The other 3 non-EU countries in EFTA, Liechtenstein,
Iceland and Norway, are members of the EEA.
The New Approach Directives, designed to eliminate technical barriers to trade in Europe,
set product safety technical requirements. The most important of these apply to medical devices.
Other directives include low voltage, simple pressure vessels, toys, construction products,
electromagnetic compatibility, machinery, personal protection equipment, telecom terminal
equipment, boilers, explosives and recreational craft.
The CE Marking is affixed to products after they are successfully tested for conformity to
applicable directives.
Current Good Manufacturing Practices (CGMP)
Manufacturers of medical devices that plan to distribute products in the U.S. are required to adhere
to
Food and Drug Administration (FDA) Current Good Manufacturing Practices (CGMP), under which
the company must establish a quality assurance program and its medical devices must
meet
specifications and controls to guarantee they are safe and effective for intended
use.‖
CGMP covers quality assurance programs and organization, buildings, equipment,
components,
production and process controls, packaging and label control, distribution and installation, device
evaluation and records.
The FDA monitors medical device problem data and inspects the operations and records of device
manufacturers to determine CGMP quality assurance compliance.
ISO/IEC 17025
ISO/IEC 17025, released in 1999, contains all the requirements that testing and
calibration
laboratories must meet to demonstrate that they operate quality management systems (QMS), are
technically competent and can generate technically valid results. All ISO 9000 requirements that are
relevant to the scope of testing and calibration laboratory QMS have been incorporated into
ISO/IEC
17025, along with technical competency
requirements.
ISO/IEC 17025 covers such matters as quality system; personnel; document control; review
of requests, tenders and contracts; subcontracting of tests and calibrations; purchasing services and
supplies; services to the client; control of records; internal audits; accommoda tion
and environmental conditions; test and calibration methods and method validation; equipment;
measurement traceability; sampling; handling of test and calibration items; and reporting the results.

82. ISO/IEC 17025 accreditation is a more thorough process than ISO 9000 registration because it
recognizes a laboratory‘s competence to produce technically valid results as well as its QMS
conformance. When a laboratory is part of a larger facility, ISO/IEC 17025 accreditation can occur
at

83. the same time as ISO 9000, QS-9000 or ISO/TS 16949 registration if the auditor is working for both
an accreditation body and a registrar.
BS 7799
BS 7799, developed by the British Standards Institution (BSI), provides a comprehensive set of
information security management systems (ISMS) controls, which apply to information systems
used by organizations in industry and commerce, including information processing technology in
the area of networks and communications.
There are two parts to the standard. BS 7799-2 is a specification standard that sets ISMS
requirements that can be implemented, audited and used for registration. BS 7799-1 is a guidance
document that is the basis for the international information security guidance standard,
ISO/IEC
17799.
The standard covers such areas as document control, security policy and organization, asset
classification and control, physical and environmental security, communications and
operations management, access control and compliance with legal requirements. Organizations
seeking BS 7799 registration must assess security risks, select controls and develop guidelines.
TL 9000
TL 9000, released in 1999 and revised in 2001 to align with ISO 9001:2000, is the
telecommunications industry derivative of ISO 9000. This standard harmonizes telecommunications
quality management system (QMS) requirements for the design, development, production,
delivery,
installation and maintenance of hardware, software products, and services. Conformance to TL
9000 decreases time to market and improves the total cost of ownership throughout the supply chain.
TL 9000‘s structure contains five levels of QMS requirements and measurements. They are
ISO 9001:2000; common telecommunications industry quality system requirements (QSRs);
hardware, software and services specific QSRs; common telecommunications industry
measurements; and hardware, software and services specific quality system measurements.
TL 9000‘s telecommunications sector-specific QSRs are divided into six categories
and marked accordingly: common (C), hardware (H), software (S), services (V), hardware and
software (HS), and hardware and services (HV). There are no services and software (VS) elements.
A supplier is only required to implement the additional elements that fit its scope of operations.
Only a hardware and software company that offers a service must implement all sector-
specific requirements. TL 9000 breaks ground by establishing cost and performance based
measurements that measure the reliability and quality performance of hardware, software and
services. These performance measurement tools are important from the customer‘s point of view and
include hardware return rates, system outages, number of problem reports, software update
quality, on-time delivery, invoice accuracy, and the efficiency and level of success of the supplier‘s
business processes and activities.
TL 9000 registration may encompass an entire company, an organizational unit, a
combination of units, several facilities, an individual facility, or a limited and defined product
line. The registration scope may be for hardware, software, services or any combination thereof.
SA 8000
Social Accountability (SA) 8000, released in 1997, is the first international standard dealing
with the workplace environment. It requires employers to pay wages sufficient to meet workers'
basic needs, provide a safe working environment, not employ child or forced labor, and not
force

84. employees to regularly work more than 48 hours a week. Other SA 8000 elements address health
issues, freedom of association, discrimination, disciplinary practices and management.
Developed by the nonprofit Council on Economic Priorities Accreditation Agency (CEPAA),
with the assistance of a wide range of business, industry, labor, human rights, certification and audit
experts, and based on several existing international human rights standards, including the United
Nations Universal Declaration of Human Rights and the Convention on the Rights of the Child, SA
8000 provides a means to improve working conditions and meet the social challenges of economic
globalization.
SA 8000 certification enables a company to project a positive image and good reputation to
clients, employees, suppliers, shareholders and consumers. This standard gives the general public
confidence in the ethical production of the products they buy, contains mechanisms for
continuous
improvement and provides a marketing edge with better labor practices. Enforcing humane
conditions in factories may also lead to higher quality products on the market.
ISO/IEC 15408
ISO/IEC 15408, released in 1999, is the first international information technology security
evaluation criteria standard, defining Common Criteria (CC) used to evaluate security properties of
information technology (IT) products and systems, such as operating systems, computer networks,
distributed systems, applications and other hardware, firmware and software.
These requirements apply to both security functions of IT products and systems, and assurance
measures used during security evaluation and validation. The CC can also be used as a guide by
IT
consumers, developers and evaluators in developing or procuring products or systems with
IT
security functions.
During a security evaluation or validation, an IT product or system is known as a Target of
Evaluation (TOE). A set of security requirements and specifications used to evaluate or validate
a TOE is a developer Security Target (ST). An implementation-independent set of security
requirements for a category of TOEs that meet specific consumer needs is a user Protection Profile
(PP). Evaluation and validation is an assessment of a PP, ST or TOE against CC security
requirements.
The ISO/IEC 15408 CC is implemented in the U.S. by the National Information Assurance
Partnership (NIAP) Common Criteria Evaluation and Validation Scheme (CCEVS), which
sets
standards; monitors the quality of evaluations; and assures that the Common
Evaluation Methodology (CEM), which addresses evaluation methodology and procedures, is used
consistently across government-accredited, product testing and evaluation facilities.
Information technology security evaluations are conducted by Common Criteria
Testing Laboratories (CCTLs), commercial testing laboratories accredited by National Voluntary
Laboratory Accreditation Program (NVLAP), approved by the NIAP Validation Body and placed on
the NIAP Approved Laboratories List
Supply Chain Management
Supply Chain Management recognizes that competition is now across supply chains, not
individual companies. A supply chain is the network of companies linked together in supplier to
customer relationships across a product life cycle from raw material to final consumption. Supply
Chain Management integrates every aspect of product development and design, producing

85. competitive advantages throughout the product life cycle.

86. Supply Chain Management optimizes and synchronizes material, process, information and cash
flow from raw material to final consumption, while driving out excess inventory and unnecessary
costs. The right product gets delivered to the right place, at the right time and at the right price.
Any organization in the supply chain network can initiate a supply chain program and
realize benefits. However, the closer a company is to the final customer, the better it is pos itioned
to lead a Supply Chain Management program.
Six Sigma
Six Sigma is a statistically oriented approach to process improvement, designed to reach a
quality level of less than 3.4 Defects Per Million Opportunities (DPMO) for Critical-To-Quality
(CTQ) characteristics in a manufacturing or service process.
Achieving this Six Sigma level reduces the cost of defects from 20-30 percent to 1 percent
of
revenues. There is a reduced need for testing and inspection, costs go down, cycle time decreases
and customer satisfaction goes up as companies are able to deliver the highest quality product, on
time and at the right price.
Six Sigma uses a variety of tools, including Statistical Process Control (SPC), Total Quality
Management (TQM) and Design of Experiments (DOE). It can be coordinated with other major
initiatives and systems, such as new product development, Materials Requirement Planning (MRP)