The document outlines topics on total quality management, including definitions of internal and external customers, concerns regarding product pricing, and improvement strategies like the Juran Trilogy and PDSA cycle. It also addresses building supplier relationships, performance measures for various organizations, and the purpose of ISO 9000 quality systems. Additionally, it explores customer requirements and attributes for product development in quality by design initiatives.

1. AEREN FOUNDATION’S Maharashtra Govt. Reg. No.: F-11724
SUBJECT : TOTAL QUALITY MANAGEMENT
Total Marks : 80
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Case Study -1
AN ISO 9001 : 2008 CERTIFIED INTERNATIONAL B-SCHOOL

2. 1. Define the terms internal customer and external customer?
Answer: A customer is some person or organization that uses an output from a different person or
organization. Customers are defined as internal and external to an organization. External customers are
most common in sales where a company sells a product to a customer. Internal customers are persons
or departments who rely on output from another department of the same organization to accomplish
their own function. A typical example of an external customer is a grocery shopper who goes to a
market to buy goods. This person is from outside
2. Is the main concern of most consumers the price bf the product or service? Explain?
Answer: Resolving disputed invoices costs some industries (for example, the consumer packaged goods
industry) a great deal of time and money. Customers deduct disputed invoices from payments and staff
members spend valuable time investigating and researching the reasons for the disputed payment. In
addition, prolonged disputes can endanger supplier-customer relations. The extended pricing functions
introduced in Release 2.2 enable you to take into account the customer's expected price. By entering
the expected price during sales order
Case 2
Questions
1) List various techniques to sustain continuous improvement.
Answer: Some experts agree that successful and sustainable continuous improvement teams should be
staffed with high potential individuals and the leaders of the organization. Both a position leader and
more importantly the person who drives and inspires other people—they are the ones who other
people listen to. Some think it’s neat to have a
2) Working as an individual or in a team of three or more people, evaluate one or more of the
following organizations concerning their use of the Juran Trilogy.
(a) Large bank
(b) Health-care facility
(c) University academic department
(d) Ur1iversly academic department
(e) Large department store

3. (f) Grade school
(g) Manufacturing facility
(h) Large grocery store
Answer: Quality management for macro processes is carried out by use of the Juran Trilogy, which
basically consists of three steps
Large department store
In most organizations there is a great focus on the Quality Control process, with little or no emphasis on
the other two processes; however the well-established and customer focused organizations do have
clearly defined and robust process for all
Quality Planning: The quality planning phase is the activity of developing products and processes to
meet customers' needs. It deals with setting goals and establishing the means required to reach the
goals. The various steps in the quality
Quality Control: This process deals with the execution of plans and it includes monitoring operations so
as to detect differences between actual performance and goals. It consists of three steps:
 Evaluate actual quality

Quality Improvement: The process is for obtaining breakthrough in quality performance, and it consists
of several steps:
 Establish the infrastructure needed to secure annual quality improvement
 Identify the specific needs for improvement- the improvement projects
 Establish project teams

3) Using a product such as a house, machine, or car, give an example of the four improvement
strategies.
Answer: Product strategy amounts to a strategic marketing plan based on price, product, placement and
promotion. Each decision you make about the price, product, placement or promotion will affect the
overall product strategy. If a product is not selling
4) Give an example of the use of the PDSA cycle in your personal life and in your work experiences.
Answer: In the business world, PDSA — Plan, Do, Study, Act — are steps toward continuous
improvement of processes and products. The PDSA Cycle is also called the Deming Cycle, honoring the
man who put together a smart plan for Total Quality Management, American statistician W. Edward
Deming.

4. Deming believed in the value of making things better with constant effort over time, rather than
churning out quick profits with cheaper materials,
5) Select a problem in one of the processes of your daily life and use the seven phases to solve it.
 Answer: All of us are involved in some kind of problem solving everyday, both in our personal
and professional lives. In our families and our work environments we are faced with a multitude
of issues that require making decisions made with others. Some of these decisions are small
and do not have a long term impact on our lives. Examples of these might be where we will go
to dinner tonight, what program we will watch on television, or what movie we will see. Other
decisions are significant and require
Case 3
Questions
1) Working as ‘“. individual or in a team of two or three people, develop the to building a better
supplier relationship with one of the following organizations
(a) Large bank
(b) Health-care facility
(c) University academic department
(d) University nonacademic department
(e) Large department store
(f) Grade school
(g) Manufacturing facility
(h) Large grocery store
Answer: Relationships between distributors and suppliers range from highly tactical to extremely
strategic. A wise distributor constantly attempts to calibrate the relationship with each supplier and
makes adjustments to the energy it applies to each relationship. Personnel at all levels of a distributor
must be able to describe the current relationship with its suppliers and simultaneously understand how
the distributor is attempting to reshape the relationship in
2) Working as an individual or in a team of two or three people, evaluate one or more of the
organizations in Exercise 1 to determine if they are using do Ishikawa’s ten principles.

5. Answer: Merrill Lynch Credit Corporation (MLCC) offers real estate and securities-based consumer credit
products-including home financing, personal credit, investment financing, and commercial real-estate
financing-to primarily affluent individuals. About
Case 4
Questions
1. Working in a team of three or more people. What performance measures would you recommend
for the following organizations?
(a) Answer: Large bank: Successful bank operation requires managers to weigh complex trade-offs
between growth, return, and risk. In recent years banks increasingly have adopted innovative
performance metrics based on the concept of economic profit, rather than accounting earnings, to assist
managers in making such difficult and complex decisions. Banks hope in this way to elicit better
decision-making by managers and also to align
(b) Answer: Health-care facility: The quality of health care impacts patients in many ways. High-quality
care can speed your recovery from illness or procedures, improve your ability to stay well, and improve
your quality of life. Before choosing a healthcare provider, you should look for information about the
provider’s performance, visit or call the facility, if possible, and ask your family and friends about their
experiences.The Office of Facilities Regulation inspects healthcare facilities to ensure that they adhere
to state and federal standards.
(c) Answer: University academic department: Measuring the performance of academic departments
received little attention compared to other industries due to their complex nature and difficulty in
measuring their outputs. However, measures of performance are needed to assess whether they meet
their set objectives and foster an
(d) Answer: University nonacademic department: Ryerson University makes extensive use of
performance indicators and statistics to gauge success in achieving goals and objectives and to foster
improvement. Several sets of indicators have been
(e) Answer: Large department store: The luxury department stores are more sensitive to an economic
cycle, and all department stores in this study demonstrated higher performance in recent years, except
for one discount department store that

6. (f) Answer: Grade school: A significant accountability and support mechanism for any strategic plan is
the identification of a set of coherent and connected data measures that are indicative of the
organization’s ability to accomplish its stated goals
(g) Answer: Manufacturing facility: Effectively measuring, analyzing, and improving manufacturing
metrics is not as simple as it may appear. While there are certain metrics that work well for specific job
roles, it’s often the case that there are multiple combinations of metric indicators needed to ensure that
a larger business objective is being met.
 On-Time Delivery to Commit

(h) Answer: Large grocery store: A marketing strategy is a method by which a firm attempts to reach its
target markets. Marketing strategy starts with market research, in which needs and attitudes and
competitors' products are assessed and continues through into advertising, promotion, distribution and
where applicable, customer servicing,
2. Working as an individual or in a team of three or more people. Evaluate the strategy used by one of
the organizations listed in Exercise 1.
Answer: As part of the Business Planning Process, each July senior managers translate the strategic
imperatives into the company’s Critical Few Objectives, key performance measures for their CFOs, and
Specific targets for the next one and three years. For example, a CFO to increase process productivity
with an aim of increasing shareholder value is measured by the number of days to approve applications,
with specific, ambitious, and measurable goals. In turn, these CFOs provide the basis for determining
partner performance management plans.
Case 5
Questions
1) Briefly describe the purpose of an ISO 9000 quality system.
Answer: The International Organization for Standardization is the world's leading organization for
standards development. The organization developed the 9000 standard to set the bar for quality
management. According to the ISO website, the ISO
2) What is a quality policy statement?

7. Answer: It is the Policy of the Company to provide services of a consistently high quality to our
customers and to establish objectives and processes necessary to deliver results in accordance with
customer and legal requirements.
3) Describe the four tiers of quality documentation.
Answer:A quality system is the method used to ensure that the quality level of a product or service is
maintained.All documentation moves from one level to the next in a descending order. If the system is
properly structured, changes at one level will seldom affect the level above it, but may affect those
below.
4) Determine which element of ISO 9001 is referenced in each of the following situations:
(a) An audit found that no supplier reviews were being performed.
Answer: Perception: The ISO 9001 system is a quality system (belongs in the quality department or is the
responsibility of the quality manager), or many organizations feel they need to hire somebody full time
to manage the ISO 9001 system (for example, internal audit coordinator, corrective action coordinator,
ISO coordinator).
Third-party auditors are there to perform an audit to measure conformance to the company’s
documented management system and to the requirements of ISO 9001. It does not matter if they agree
or disagree with how a company decides to
5) What are the basic differences among the quality systems discussed in the text?
Answer: Quality assuarance is process oriented and it refers to all the planned and systematic activities
implemented within the quality system that can be demonstrated to provide confidence that a product
will fulfill requirements for quality while quality control is product oriented and is the operational
tecnics and activities used to fulfill requirements for quality
ISO 9000 quality management (QM) standards have
6) Why is it important to have element owners?
Answer:In the earliest stages of business model development, it’s often most helpful to start with the
first four elements at the heart of most businesses.
Using the Customer Development process along with the business model canvas first developed by
Alexander Osterwalder, it’s possible to assemble a far more detailed version of your “vision” that

8. includes the nine most important elements of any successful business (we’ll get to what those are
below). With that in hand, you can validate your
7) Why is documentation the most common reason for noncompliance?
Answer:When a patient misses (unplanned) three or more consecutive scheduled sessions or has not
been to a session in a month (whichever comes first), and you have not been able to contact him/her,
consider sending a formal note to the patient acknowledging his/her apparent decision not to attend or
resume MM treatment sessions and/or take medication. Your note should encourage the patient to
return to MM treatment and/or to resume
8) Prepare a list of internal audit questions for three elements.
Answer:The internal audit function plays a key role in assessing and reporting on an organization’s risk
management, internal controls and management information systems. Directors of companies that have
an internal audit function should have a general understanding of its role and contribution. In addition,
the audit committee should confirm that the
9) Working as an individual or in a team of three or more people. perform an internal audit and write
a report on three elements at a local organization.
Answer: The role of internal audit is to provide independent assurance that an organisation's risk
management, governance and internal control processes are operating effectively. Internal auditors deal
with issues that are fundamentally important to the survival and prosperity of any organisation. Unlike
external auditors, they look beyond financial risks and statements to consider wider issues such as the
organisation's reputation, growth, its impact
10) Describe how a two-party audit system works.
Answer: ISO 9000 is not a product registration standard; it in no way measures or recognizes the quality
of a company's product, nor does it mean that two companies with ISO 9000 registrations are
equivalent.

9. Case 6
Questions
1. Working individually or in a team, list four or more primary customer requirements for one or more
of the following production items or service industries.
Also, refine the primary customer requirements to a second level.
Answer: Customers' needs for accommodation change because of many factors. The main factors are
changes in new technology, demands of health and safety, stricter legislation and the need to respond
to different working patterns. Businesses have to find solutions quickly to keep up to date. They also
need to allow for further changes in the future.
(c) Pizza
2. Working individually or in a team, list six or more primary technical descriptors for one or more of
the selections used in Exercise 1. Make an attempt to address all the customer requirements from
Exercise 1 and refine the secondary technical descriptors to a second level.
Answer: The needs of External Customers are - To receive good quality customer service. - To receive
useful and professional advice. - To be kept up-to-date with recent promotions & Products The needs of
internal customers are - To have a good
3. Working individually or in a team, form an L-shaped matrix and complete the relationship matrix,
including weights, for one or more of the selections used in Exercises I and 2.
Answer:Relationship matrix is a new business development analysis matrix used to analyze the market
to find new business opportunity in difficult times.
The matrix operation is very simple like traditional excel
Case 7
Quesstions

10. 1. Briefly describe the difference between sequential engineering and quality by design (or
concurrent) engineering.
Answer: Sequential engineering is the term used to describe the method of production in a linear
format. The different steps are done one after another, with all attention and resources focused on that
one task. After it is completed it is left alone and
2. List 15 general attributes that a quality’ by design team should consider during the product design
phase of product development.
Answer: Central to the concept of “employability” is the acquisition of the right attributes, knowledge,
skills, attitudes, and competencies in order to increase the likelihood of graduates successfully gaining
meaningful employment and fulfilling their potential in their chosen occupations. In the past
employability was narrowly defined as the proportion of graduates from an institution that were
employed after graduation. But clearly employability is not just a quality of the graduates, or the
outcome of their training and education, but also
3. Select members of a quality by design team for the development and production of two or more of
the following products. If possible the team should be limited to ten members of different disciplines.
(a) Ballpoint pen
(b) Car windshield sunscreen
(c) Manual can opener
(d) Computer keyboard
(e) Clothes iron
4. Design the workspace for two or more of the items you used in Exercise 3.
Answer: The concept of service design has been evolving through the past decade. Service design is a
truly interdisciplinary field. With one foot planted in the realm of management consulting and process
design, service design takes its other cues from software development, risk management and supply
chain management, to name only a few fields that

11. 5. Using trade journals and professional society magazines, list three or more commercially-available
software packages for two of the following quality by design tools. Also, try to compare the software
packages on the basis of cost, attributes, and performance.
Answer:
(b) Computer—aided drafting: Seeing your imaginings materialize and take actual form, now that's
what it's all about, right? And if you can command your PC to perform all the gory drudgeries of that
undertaking, so much the better. Luckily, others have been thinking along that same vein for decades, so
today you can enjoy the culmination of all their toil and sweat. It's called Computer Aided Design. Keep
in mind of course that this sort of software tends
Case 8
Questions
1) Write a warning label or operating instructions for the following products:
Answer:
a) Trampoline:
 Be sure the Trampoline and enclosure is on a level surface before each use.
 Be sure there is enough clearance above the Trampoline before using it. It is necessary to have
at least 24 feet of clear space above the ground. This includes, but is not limited to, wires, tree
limbs, and/or any other possible hazards.
 Lateral (sideways) clearance is imperative. Place the Trampoline a minimum of 6 feet away from
walls, buildings, fences, sidewalks, and other

b) In-line skates:
 Bicyclists, in-line skaters, and non-motorized scooter operators under the age of 14 are required
by law to wear an approved safety helmet.
 Bicyclists and in-line skaters must obey all traffic signals, signs and pavement markings. Bicyclists
must also signal for turns

c) Cars:
1. The Warn Recovery Strap stretches when pulled then retracts to help free a stuck vehicle.
2. Line up the rescue vehicle as directly as possible in front of, or behind the stuck vehicle.
3. Fully uncoil the strap and attach it to the rescue and stuck vehicles. Heavy-duty receiver hitches
and tow hooks are preferred attaching points.

12. d) Power-save:
 Turn off electrical / heat producing equipments when not in use: lights, TVs, computers etc.
 Check and clean the Air conditioner filter every month. This will improve cooling, reduce
compressor running time and save energy.
 Keep the doors and windows closed, while using

e) Fire works:
 The best way to enjoy fireworks is to visit public fireworks displays put on by professionals who
know how to safely handle fireworks.
 If you plan to use fireworks, make sure they are legal in your area.
 Never light fireworks indoors or near dry grass.
 Always have a bucket of water
f) A book of a diet drink:
 Manufacturers and distributors of dietary supplements and dietary ingredients are prohibited
from marketing products that are adulterated or misbranded. That means that these firms are
responsible for evaluating the
g) Electric Curlers:
 Switch the tong on using the power button, the digital screen will light up blue.
 Adjust the temperature using the + and – buttons. The temperature selected will flash until the
tong has reached the selected temperature.
h) Swimming pool:
 Children, especially children younger than five years, are at high risk of drowning.
 Drowning occurs silently and quickly and can occur in as little as 2 in. (5 cm) of water.
 Keep children in your direct sight, stay close,
2) Should the products given alone be marketed, or are they unreasonably dangerous?

13. Answer: Because of product liability lawsuits, many manufacturers have made improvements in the
safety of their products. In the last 2-3 decades, many unreasonably dangerous products have either
been removed from the market, or their designs or warnings have been greatly improved. However,
even today, many defective and unsafe products still
3) Do those who smoke cigarettes or drink alcohol assume the risk of getting lung or lever disease?
Answer:Alcohol and tobacco are among the top causes of preventable deaths in the United States.
Moreover, these substances often are used together: Studies have found that people who smoke are
much more likely to drink, and people who drink are much more likely to smoke. Dependence on alcohol
and tobacco also is correlated: People who are dependent on alcohol are three times more likely then
those in the general population to be smokers, and people who are dependent on tobacco are four
times more likely than the general population to be
4) How can the products given in exercise-1 of this case be designed to prevent or to minimize
customer misuse of the products?
Answer:Product liability refers to a manufacturer or seller being held liable for placing a defective
product into the hands of a consumer. Responsibility for a product defect that causes injury lies with all
sellers of the product who are in the distribution chain. Potentially liable parties include: the product
manufacturer; a manufacturer of component parts; the wholesaler, and the retail store that sold the
product to the consumer.
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