Unit 1. introduction to quality

TOTAL QUALITY MANAGMENT
By: Mudit M. Saxena
Dept. of Mech. Engineering
IITE, Indus University

UNIT 1. INTRODUCTION
Contents
• Introduction – Need for quality – Evolution of quality –
Definitions of quality
• Dimensions of product and service quality – Basic concepts of
TQM
• TQM Framework – Contributions of Deming, Juran and Crosby –
Barriers to TQM
• Customer focus – Customer orientation, Customer satisfaction,
Customer complaints, and Customer retention.
2
By: Mudit M. Saxena; Dept. of Mech. Engg.,IITE, Indus University

Need / Importance for quality
Producing superior quality products / service is vital to the
continued growth success of a company, therefore benefits of
quality are given below.
1. It gives a positive company image
2. It improves competitive ability both nationally and
internationally
3. It increases market share, which translates into improved
profits
4. Overall it reduces costs which also results in profits
5. It reduces problems & avoids unnecessary costs
6. It creates an atmosphere for high employee morale,
which improves productivity .
3

Evolution of Quality
4

CONCEPTS OF QUALITY
Q- Quest for excellence
U- Understanding customers’ needs
A- Action to achieve customer’s appreciation
L- Leadership-determination to be a leader
I- Involving all people
T- Team spirit to work for a common goal
Y- Yardstick to measure progress
5

INTRODUCTION TO TQM
TQM is the integration of all functions and processes
within an organization in order to achieve continuous
improvement of the quality of goods and services. The
goal is customer satisfaction.
6

TQM FRAMEWORK
TQM framework gives the overall structure of the organization.
7

TQM FRAMEWORK
• The Total Quality Management (TQM) framework is a
technique based on the premise that employees
continuously work on their ability to provide value to
customers.
• Importantly, the word “total” means that all employees are
involved in the process – regardless of whether they work
in development, production, or fulfillment.
8

TQM FRAMEWORK
8 principles of Total Quality Management
o1. Customer-focused
o2. Employee engagement
o3. Process approach
o4. System integration
o5. Strategic and systematic approach
o6. Continual improvement
o7. Decision-making based on facts
o8. Communication
9

TQM framework
• The TQM framework was developed by management consultant William
Deming, who introduced it to the Japanese manufacturing industry. Today,
Toyota is perhaps the best example of the TQM framework in action. The
carmaker has a “customer first” focus and a commitment to continuous
improvement through “total participation”.
• Indeed, the focus of the TQM framework is the continual improvement of
all processes with an organization – regardless of whether they have a
direct or indirect impact on customer satisfaction.
• Improvement comes from identifying and then removing or reducing errors.
Errors commonly occur in supply chain management, manufacturing,
employee training, and customer experience.
• Regardless of the cause, all employees must work toward problem-solving
and adding value to the customer experience.
10

• While there is no universal approach to implementing a
TQM framework, many businesses use the following eight
principles.
• Many of these are evergreen principles that can be applied
to any industry and are incorporated in more modern
management techniques.
11

1. Customer-focused
• The TQM framework acknowledges that the customer is the
final determiner of whether company processes are
sufficiently high quality. If the customer is not satisfied,
then the company must refocus its efforts on understanding
consumer needs and expectations on a deeper level.
2. Employee engagement
• Engaged employees are empowered employees who are
not fearful of their jobs. As a result, they have the
confidence and experience to suggest and implement
continuous improvement across many systems.
12

3. Process approach
Refining process is a fundamental component of the TQM framework.
Here, refinement means processes are followed in a logical order to
ensure consistency and increased productivity. Flowcharts and visual
action plans can be produced so that employees understand their
responsibilities.
4. System integration
System integration means that every single employee in a given
company has a reasonable understanding of policies, standards, and
objectives. It is vital that employees understand their roles and how
they contribute to the greater success of the company – no matter
how indirect these roles may seem.
13

5. Strategic and systematic approach
A business must develop strategies that are quality-centric. Company
mission statements and their associated goals and values should also
reflect the quality-first approach to customer satisfaction.
6. Continual improvement
Continual improvement is important in developing a competitive
advantage and also in meeting stakeholder expectations. Toyota’s
model for continual improvement places a high emphasis on
employee participation, eliminating waste and reducing bureaucracy.
These factors increase innovation and reduce costs, which ultimately
flow to the consumer.
14
By: Mudit M. Saxena; Dept. of Mech.
Engg.,IITE, Indus University

7. Decision-making based on facts
Informed decisions are derived from a deep understanding of a
business’s market and their target audience. Wherever possible, data
should be collected to support employee experience and intuition
concerning creating value for consumers.
8. Communication
Communication is an often overlooked yet vitally important part of
any successful company. It plays a key role in clarifying expectations
while also increasing employee morale and motivation. It also
increases collaboration and innovation between previously separate
departments in a single company.
15

TQM Six Basic Concepts
1. Leadership
2. Customer Satisfaction
3. Employee Involvement
4. Continuous Process Improvement
5. Supplier Partnership
6. Performance Measures
16

TQM Six Basic Concepts
In order to achieve excellence, six basic concepts of
TQM:
1. Top management should be aware of currect situation and
needs to be commited towards TQM implementation.
2. Focus customer requirements and product/service
expectations.
3. Involve employees in understanding the quality aspects and
make them accountable
4. Continuous improvement in the process is required
5. Treat suppliers as your partners
6. Develop tracking mechanism for processes and improve it as
per business requirements
17

The Three Quality Gurus
Deming: the best known of the “early” pioneers, is credited
with popularizing quality control in Japan in early
1950s.Today, he is regarded as a national hero in that
country and is the father of the world famous Deming prize
for quality.
According to Deming:
• Good quality means a predictable degree of uniformity
and dependability with a quality standard suited to the
customer.
18

JURAN
Juran, like Deming was invited to Japan in 1954 by
the union of Japanese Scientists and engineers.
Juran defines quality as fitness for use in terms of
design, conformance, availability, safety and field
use. He focuses on top-down management and
technical methods rather than worker pride and
satisfaction.
19

Philip Crosby:
• Quality is defined as conformance to requirements, not “goodness”
• The system for achieving quality is prevention, not appraisal.
• The performance standard is zero defects, not “that’s close enough”
• The measurement of quality is the price of non-conformance, not
indexes.
20

Commonality of Themes of Quality Gurus
• Inspection is never the answer to quality improvement, nor is
“policing”.
• Involvement of leadership and top management is essential to the
necessary culture of commitment to quality.
• A program for quality requires organization-wide efforts and long term
commitment, accompanied by the necessary investment in training.
• Quality is first and schedules are second.
21

DIFINITION OF QUALITY
Different people interpret quality differently.
Few can define quality in measurable terms that can be proved
operationalized. When asked what differentiates their product or service;
• The banker will answer” service”
• The healthcare worker will answer “quality health care”
• The hotel employee will answer “customer satisfaction”
• The manufacturer will simply answer “quality product”
22
By: Mudit M. Saxena; Dept. of Mech.
Engg.,IITE, Indus University

DEFINITION OF QUALITY
Quality can be quantified as
• Q = P/E
Where Q=Quality
P=Performance
E=Expectations
If Q is greater than 1.0, then the customer has a good
feeling about the product or service.
23

DIMENSIONS OF MANUFACTURING AND SERVICE QUALITY
The various dimensions of product and service
quality are:
– Performance
– Features
– Conformance
– Reliability
– Durability
– Service
– Response
– Aesthetics
– Reputation
24

• Performance - Primary product characteristics,
such as the brightness of the picture
• Features - Secondary characteristics, added
features, such as remote control.
• Conformance - Meeting specifications or industry
standards, workmanship.
• Reliability – Consistency of performance over time,
average time for the unit to fail.
25

• 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.
26

Quality in different areas of society
Area Examples
Airlines On-time, comfortable, low-cost service
Health Care
Correct diagnosis, minimum wait time,
lower cost, security
Food Services
Good product, fast delivery, good
environment
Postal Services fast delivery, correct delivery, cost
Academia
Proper preparation for future, on-time
knowledge delivery
Consumer Products Properly made, defect-free, cost effective
Insurance Payoff on time, reasonable cost
Automotive Defect-free, Reliable service
Communications Clearer, faster, cheaper service 27

What is Quality?
• Conformance to specifications (British Defense Industries
Quality Assurance Panel)
• Conformance to requirements (Philip Crosby)
• Fitness for purpose or use (Juran)
• A predictable degree of uniformity and dependability, at low
cost and suited to the market (Edward Deming)
• Synonymous with customer needs and expectations (R J
Mortiboys)
• Meeting the (stated) requirements of the customer- now and
in the future (Mike Robinson)
28

29
Definitions of Quality
• Transcendent definition: excellence
• Product-based definition: quantities of product
attributes
• User-based definition: fitness for intended use;
meeting or exceeding user expectations
• Value-based definition: quality vs. price
• Manufacturing-based definition: conformance
to specifications

More about Quality
• Realistic but demanding STANDARDS;
• Getting things RIGHT FIRST TIME; ‘It costs less to prevent a
problem than it does to correct it’
• Influences the relationship with CUSTOMERS;
• Influences how COMPLAINTS are dealt with;
• Something to do with how things LOOK and FEEL.
30

Deming’s 14 Principles.
1. Create a constant purpose toward improvement.
• Plan for quality in the long term.
• Resist reacting with short-term solutions.
• Don't just do the same things better – find better things to do.
• Predict and prepare for future challenges, and always have the
goal of getting better.
2. Adopt the new philosophy.
• Embrace quality throughout the organization.
• Put your customers' needs first, rather than react to competitive
pressure – and design products and services to meet those needs.
• Be prepared for a major change in the way business is done. It's
about leading, not simply managing.
• Create your quality vision, and implement it.
31

Deming’s 14 Principles
3. Stop depending on inspections.
• inspections are costly and unreliable – and they don't
improve quality, they merely find a lack of quality.
• Build quality into the process from start to finish.
• Don't just find what you did wrong – eliminate the
"wrongs" altogether.
• Use statistical control methods – not physical
inspections alone – to prove that the process is
working.
32

Deming’s 14 Principles.
4. Use a single supplier for any one item.
• Quality relies on consistency – the less variation you have in the input, the
less variation you'll have in the output.
• Look at suppliers as your partners in quality. Encourage them to spend
time improving their own quality – they shouldn't compete for your
business based on price alone.
• Analyze the total cost to you, not just the initial cost of the product.
• Use quality statistics to ensure that suppliers meet your quality standards.
5. Improve constantly and forever.
• Continuously improve your systems and processes. Deming promoted the
Plan-Do-Check-Act approach to process analysis and improvement.
• Emphasize training and education so everyone can do their jobs better.
• Use kaizen as a model to reduce waste and to improve productivity,
effectiveness, and safety.
33

6. Use training on the job.
• Train for consistency to help reduce variation.
• Build a foundation of common knowledge.
• Allow workers to understand their roles in the "big picture."
• Encourage staff to learn from one another, and provide a culture and
environment for effective teamwork.
7. Implement leadership.
• Expect your supervisors and managers to understand their workers and the
processes they use.
• Don't simply supervise – provide support and resources so that each staff
member can do his or her best. Be a coach instead of a policeman.
• Figure out what each person actually needs to do his or her best.
• Emphasize the importance of participative management and transformational
leadership.
• Find ways to reach full potential, and don't just focus on meeting targets and
quotas.
34

8. Eliminate fear.
• Allow people to perform at their best by ensuring that they're not afraid to express
ideas or concerns.
• Let everyone know that the goal is to achieve high quality by doing more things
right – and that you're not interested in blaming people when mistakes happen.
• Make workers feel valued, and encourage them to look for better ways to do things.
• Ensure that your leaders are approachable and that they work with teams to act in
the company's best interests.
• Use open and honest communication to remove fear from the organization.
9. Break down barriers between departments.
• Build the "internal customer" concept – recognize that each department or function
serves other departments that use their output.
• Build a shared vision.
• Use cross-functional teamwork to build understanding and reduce adversarial
relationships.
• Focus on collaboration and consensus instead of compromise.
35

10. Get rid of unclear slogans.
• Let people know exactly what you want – don't make them guess.
"Excellence in service" is short and memorable, but what does it mean?
How is it achieved? The message is clearer in a slogan like "You can do
better if you try."
• Don't let words and nice-sounding phrases replace effective leadership.
Outline your expectations, and then praise people face-to-face for doing
good work.
11. Eliminate management by objectives.
• Look at how the process is carried out, not just numerical targets. Deming
said that production targets encourage high output and low quality.
• Provide support and resources so that production levels and quality are
high and achievable.
• Measure the process rather than the people behind the process.
36

12 Remove barriers to pride of workmanship.
• Allow everyone to take pride in their work without being rated or compared.
• Treat workers the same, and don't make them compete with other workers for monetary or
other rewards. Over time, the quality system will naturally raise the level of everyone's work to
an equally high level.
13. Implement education and self-improvement.
• Improve the current skills of workers.
• Encourage people to learn new skills to prepare for future changes and challenges.
• Build skills to make your workforce more adaptable to change, and better able to find and
achieve improvements.
14. Make "transformation" everyone's job.
• Improve your overall organization by having each person take a step toward quality.
• Analyze each small step, and understand how it fits into the larger picture.
• Use effective change management principles to introduce the new philosophy and ideas in
Deming's 14 points.
37

QUALITY DOES NOT OCCUR BY ACCIDENT
• What does the customer actually want?
– Identify, understand and agree customer
requirements
• How are you going to meet those requirements?
– Plan to achieve them
38

Deming’s Cycle
Act
A
P
D
C
Pla
n
Do
Check
A
P
D
C
Pla
n
Do
Check
A
P
D
C
What are we trying to
accomplish?
How will we know that a
change is an improvement?
AIM
MEASURE
What change can we make
that
will result in improvement?
Selecting Change
39

Taguchi’s Contribution
• In the early 1980s, Prof. Genechi Taguchi introduced his
approach to using experimental design for
1)Designing products or processes so that they are
robust to environmental conditions.
2)Designing/developing products so that they are robust
to component variation.
3)Minimizing variation around a target value.
• By robust, we mean that the product or process
performs consistently on target and is relatively
insensitive to factors that are difficult to control.
40

Taguchi Philosophy
3 stages in a product’s (or process’s)
development:
1) System design: Uses scientific and
engineering principles to determine
the basic configuration.
2) Parameter design: Specific values for the
system parameters are determined.
3) Tolerance design: Determine the best tolerances
for the parameters.
41

Taguchi Philosophy
• Recommends: statistical experimental
design methods have to be used for
quality improvement, particularly
during parameter and tolerance
design phases.
• Key component: reduce the variability around
the target (nominal) value.
42

Internal and External Benefits of Quality
• Reduces costs
• Increases dependability
• Increases speed
• Boosts moral
• Increases customer retention
• Increases profit
Internal Benefits External Benefits
• Customer gets
correct product or
service
• Correct specifications
• Appropriate
intangibles
• Customer satisfaction
• Customer retention
43

Drawbacks
• Long way to establish in the organisation
• QM design not always fit for purpose (loss of cost
effectiveness)
• Substantial efforts
• Maintain system, otherwise reject it.
44

BARRIERS TO TQM
Lack of Management Commitment
• There must be a substantial management commitment of
management time and organizational resources.
• The purpose must be clearly and continuously
communicated to all personnel
• Management must consistently apply the principles of TQM
45

Inability to change organizational Culture
Basic Concepts
• People change when they want to and to meet their own
needs.
• Never expect anyone to engage in behavior that serves the
organizational values unless adequate reason (why) has been
given.
• For change to be accepted, people must be moved from a
state of fear to trust.
• Speeches, Slogans, Campaigns are effective only for a short
period of time.
• Organization that spend more time on change, only have
chances of success.
46
BARRIERS TO TQM

Improper Planning
• All constituents of the organization must be involved in the
development of the implementation plan and any
modification that occurs as the plan evolves.
• The most important thing is two way communications of
ideas by all personnel during the development of the plan
and its implementation.
• Customer satisfaction should be the goal rather than the
financial or sales goals.
47
BARRIERS TO TQM

Lack of continuous training and education
• Training and education is an ongoing process for
everyone in the organization.
• Training and education are most effective when
senior management conducts the training on the
principles of TQM.
48
BARRIERS TO TQM

Incompatible Organizational Structure and
Isolated Individuals and Departments.
• Differences between departments and individuals
can create implementation problems.
• The use of multifunctional team will help to break
down long-standing barriers.
• Restructuring the organization to meet
organization needs is important.
• Individuals who do not embrace the new
philosophy can be required to leave the
organization.
49
BARRIERS TO TQM

Ineffective Measurement Techniques and Lack of
Access to Data and Results.
• Key characteristics of the organization should be
measured so that the effective decisions can be
made.
• Access to data and quick retrieval is necessary for
effective processes.
50
BARRIERS TO TQM

Paying Inadequate Attention to Internal and
External Customers
• Organizations need to understand the changing
needs and expectations of their customers.
• Effective feedback mechanisms that provide data
for decision making are necessary for this
nderstanding.
• When an organization fails to empower
individuals and teams, it cannot hold them
responsible for producing results.
51
BARRIERS TO TQM

Inadequate Use of Empowerment and Teamwork
• Teams need to have the proper training and at least in the
beginning a facilitator.
• Individuals should be empowered to make decisions that
affect the efficiency of their process or the satisfaction of
their customers.
Failure to Continually Improve
• A lack of continuous improvement of the processes, product
or service will even leave the leader of the pack in the dust.
52
BARRIERS TO TQM

CUSTOMER FOCUS
The first of the Total Quality Management principles puts the focus
back on the people buying your product or service.
Your customers determine the quality of your product. If your product
fulfills a need and lasts as long or longer than expected, customers
know that they have spent their money on a quality product.
When you understand what your customer wants or needs, you have
a better chance of figuring out how to get the right materials, people,
and processes in place to meet and exceed their expectations.
53

To implement this TQM principle:
• Research and understand your customers’ needs and
expectations.
• Align your organization’s objectives with customer needs.
• Communicate with customers, measure satisfaction, and use the
results to find ways to improve processes.
• Manage customer relationships.
• Find a balance for satisfying customers and other interested
parties (such as owners, employees, suppliers, and investors).
• The benefits of being customer-focused include:
• More sales, increased revenue, market share, and mindshare
• Strong customer loyalty leading to repeat business
• Increased possibility that satisfied customers will tell others
about your products and services
CUSTOMER FOCUS
54

Customer orientation
• Customer orientation is a business approach in which a
company solves for the customer first. It's all about
focusing on helping customers meet their goals.
• Essentially, the needs and wants of the customer are
valued over the needs of the business. For customer service,
this means your support team is focused on meeting
customer needs.
• Rather than implementing a customer orientation approach,
some companies choose to use a sales orientation
methodology. This means that your business would value
the needs and wants of the company over the customer.
55

• With inbound customer service, your support team is focused on
providing helpful, human, and holistic solutions to your customers.
• A customer orientation approach is useful for several reasons. For
one, as mentioned above, it's more cost-effective to retain
customers than it is to acquire new ones.
• Additionally, the happier your customers are, the more likely they
are to become ambassadors for your brand.
• Now, you might be wondering, "How do I implement a customer
orientation approach in my customer support team?"
56

• For example, when you calculate Net Promoter Score,
you're hoping to have as many promoters as possible.
Promoters are loyal to your brand and will tell their friends
about it.
• Plus, in this day and age, customers know what they want.
They're highly knowledgeable and have more resources
than ever before.
57

How To Implement Customer Orientation
• Below we've outlined eight steps to help you get started.
1. Recruit the right people.
• Who you hire is of the utmost importance for your customer
service team. Instead of hiring for skills, which you can
teach, hire for attitude and friendliness. Plus, look for
empathetic people who can problem solve. Finding the right
people can make or break a customer support team.
2. Value your employees.
• Customer support can often be a thankless job. But it
shouldn't be. Don't forget to treat your employees well. If
they're happy coming to work, it makes it easier for them to
focus on the customers.
58

To Implement Customer Orientation
3. Provide excellent training.
• Your entire team needs to be trained on the customer first
approach. In regards to customer support, training should focus
on product knowledge, troubleshooting, and customer care.
4. Lead by example.
• The entire leadership and management team needs to fully
embrace a customer orientation approach. If they don't, your
team won't feel comfortable to implement this strategy. For
example, you can't punish employees for solving for the
customer. This means that the company culture needs to follow
through on what you say your values are. For instance, support
staff shouldn't get punished for making product suggestions.
59

5. Understand the customer.
• It's important to understand your customer. For customer
support, this means empathizing with customers who are
upset. Listen to them. It's important that your customer
support team truly understands your customers needs.
6. Iterate your process.
• Keep in mind that your customers' needs are always changing
and evolving over time. Your company should evolve and
change with them. With a customer orientation approach, your
business should always be focused on figuring out how you
can accommodate changing needs, and hopefully anticipate
them.
60

7. Empower your staff.
• Your customer support team should have the authority to resolve most customer
complaints. Plus, your support staff should be empowered to suggest changes to
management that would benefit customers in the long run.
8. Receive feedback.
• Since customer needs are always changing, you'll have to talk to your customers
about what they need and want. Customer support is in a unique position to do
this. Your customer support team will have a pulse on what customers are upset
about and what changes can be made.
• Ultimately, you have to be steadfast in your philosophy, teach it, and implement
it. A customer orientation approach only works if you walk the walk.
• In customer service, you can show a customer orientation approach by
responding promptly and respectfully to customer complaints. You can help
customers and solve their problem, even if it doesn't directly benefit your
company.
61

CUSTOMER SATISFACTION
• Customers are important asset to the organization, satisfied
customers will buy more, and buy more frequently, and pay their
bill promptly.
• In a manufacturing and service organization, customer satisfaction
is considered as a measure of quality.
• TQM implies an organizational drive with meeting or exceeding
customer needs. Understanding the customer's needs and
expectations is essential to winning new business.
• To attain this level, the organization should examine their quality
system to respond to their ever changing customer's needs.
62

CUSTOMER COMPLAINTS
• Unlike the customer's feedback the customer complaints are reactive,
and they are important in gaining data on customer perceptions.
• A dissatisfied customer can easily become a lost customer because of
their frustrations. This customer dissatisfaction becomes a measure for
organizational process improvement measures.
• Every single complaint should be accepted, analyzed, and acted upon
to again win over customer's confidence. Since more than 50% of the
dissatisfied customers will buy again if they are complaint has been
heard and resolved.
• By adopting a positive approach the complaints can be seen as an
opportunity to obtain information and provide a positive service to the
customer.
63

CUSTOMER RETENTION
• Customer retention represents the activities that produce the
necessary customer satisfaction which in turn creates the
customer loyalty.
• Customer retention moves customer satisfaction to the next level
by determining what is truly important to the customers and
making sure that the customer satisfaction system focuses
valuable resources on things that are important to the customer.
• World-class companies know that continuous improvement and
customer satisfaction should go hand-in-hand.
• Improved service to the customer is a costlier affair, so an
organization must determine its return on the service investment.
For this the important service elements that significantly improve
revenues and market share should be determined.
• One survey indicates, it requires five times of effort to win a new
customer than retaining a present customer. In this context
customer retention is important for organizational success.
64

Assignment - 1
1. Define quality. Explain in detail about the need for TQM
2. What are the dimensions of quality? Explain the dimensions of
manufacturing and service quality.
3. Elaborate 8 principles of Total Quality Management
4. What is commonality of Themes of Quality Gurus ?
5. Discuss the internal and external benefits of quality.
6. Define the concept of Deming philosophy
7. Define TQM. Explain six basic concepts of TQM.
8. What is quality as per the different quality Gurus?
9. Discuss in detail about the basic concepts of quality.
10. What are terms that affects quality in manufacturing
organization
11. List and Describe the barriers of TQM.
12. Explain the terms customer orientation, Customer complaint
and Customer retention.
65

Unit 1. introduction to quality

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