VTU TQM, Module Full sides, for full & authentic information

1. Total Quality Management
Module 2
By Raghavendran Venugopal

2. Guru’s of TQM
NAME: Walter A Shewhart,
Nick Name: Grand Father of TQM
Qualification: PhD Holder
Worked @: western electric & Bell telephone Labs
Contributions to TQM: Developed control charts theories with
control limits, assignable & chances of variation, and rational
subgroups and lastly PDSA cycle
for learning and
improvement.
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Prof. Raghavendran V, MBA TQM 12MBA42

3. Guru’s of TQM
NAME: W. Edwards Deming,
Nick Name: Deming
Qualifications: PhD holder,
Worked @: Scholar and Philosopher
Contributions to TQM: 14 points provides theory for management to
improve quality, productivity and competitive positions.
He has authored many books including out of the crisis and Quality,
Productivity, and competitive positions
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Prof. Raghavendran V, MBA TQM 12MBA42

4. Guru’s of TQM
NAME: Joseph M Juran,
Nick Name: Juran
Qualifications: PhD holder,
Worked @: Western Electric
Contributions to TQM: Efforts on Quality involvement in
all levels & sectors of Management, The Juran’s Trilogy
& published the book titled Juran’s Quality control Hand
book
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Prof. Raghavendran V, MBA TQM 12MBA42

5. Guru’s of TQM
NAME: Armand V Feigenbaum,
Nick Name: Feigenbaum
Qualifications: PhD holder,
Worked @:Scholar & Philosopher
Contributions to TQM: Total Quality Control is necessary for
productivity, market penetration and competitive advantage.
Employee involvement, supervision leadership & company
wide quality control. He published book titled Total Quality
Control.
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Prof. Raghavendran V, MBA TQM 12MBA42

6. Guru’s of TQM
NAME: Kaoru Ishikawa
Nick Name: Ishikawa
Qualifications: PhD holder,
Worked @: Applied scholar
Contributions to TQM: Authored SPC texts in Japanese and
English. Developed Cause & Effect diagram, which is called
Ishikawa diagram. Also developed quality circle concept.
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Prof. Raghavendran V, MBA TQM 12MBA42

7. Guru’s of the TQM
NAME: Philip B Crosby
Nick Name: Crosby
Qualifications: No Idea
Worked @:Philosopher
Contributions to TQM: Authored the book titled “ Quality is free” & translated to 15 languages.
He argued that “ do it right the first time”. He again authored titled known as Quality without
tears which has 4 absolutes. And they are
Quality is conformance to requirements
Prevention of nonconformance is objective not appraisal
The performance standard is zero defects not “ that’s close enough” &Measurement of quality
is the cost of nonconformance
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Prof. Raghavendran V, MBA TQM 12MBA42

8. Guru’s of TQM
NAME: Genichi Taguchi,
Nick Name: Taguchi
Qualifications: PhD holder,
Worked @: Philosopher
Contributions to TQM: Developed Loss function which
includes Cost, target & Variation into one variable/ metric.
Because loss function are reactive. It is built on simplification
& use of traditional design of experiments.
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Prof. Raghavendran V, MBA TQM 12MBA42

9. All Guru’s
Guru’s
Principles &
Practices
Tools &
Techniques
Product or
Service rendered
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
Benchmarking
Information Technology
QMS
EMS
QFD
FMEA
Products & Service
TPM
Management Tools
SPC
Experimental Design
Taguchi’s Quality Engg
TQM Framework
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Prof. Raghavendran V, MBA TQM 12MBA42
Customer

10. Deming’s Philosophy
According to Deming's definition Quality is
the predictable degree of uniformity and
dependability, at low cost and suited to the
market.
 As per his teaching 96% of the variations
have common causes and 4% has special
variations.
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Prof. Raghavendran V, MBA TQM 12MBA42

11. Deming’s Philosophy
He viewed that statistic has management tool and relied
on SPC as mean of variations in a process.
Deming’s chain reaction: As quality improves, cost
decreases and productivity increase resulting in more
jobs, greater market share and long term survival.
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Prof. Raghavendran V, MBA TQM 12MBA42

12. Deming’s Philosophy
14 principles are listed below:
1. Create consistency of purpose with the plan
2. Adopt the new philosophy of quality
3. Stop dependence on mass production
4. End the practice of choosing the suppliers
based solely on price
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Prof. Raghavendran V, MBA TQM 12MBA42

13. Deming’s Philosophy
5.
6.
7.
8.
9.
13
Identify the problems and work continuously to
improve the system
Adopt modern methods of training on the job
Changes the focus from production number (Quantity
to Quality)
Drive out fear, create trust and create a environment
for individuals
Break down the barriers between the department &
Individual
Prof. Raghavendran V, MBA TQM 12MBA42

14. Deming’s Philosophy
10. Stop requesting improved productivity without
11.
12.
13.
14.
14
providing methods to achieve the same
Eliminate work standards that prescribe numerical
quotas
Remove barrier to pride of workmanship
Institute vigorous education and retraining
Create a structure in top management that will
emphasize on the proceeding above thirteen points
every day.
Prof. Raghavendran V, MBA TQM 12MBA42

15. To memorize these principles
CASE Internal Assessment
CD Bus Stop ERICson
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Prof. Raghavendran V, MBA TQM 12MBA42

16. PDSA or PDCA CYCLE
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Prof. Raghavendran V, MBA TQM 12MBA42

17. PDSA/PDCA Cycle
The basic Plan-Do-Study-Act was first developed by
Shewhart and modified by Deming. It is an effective
improvement technique.
Later it was known Problem
-Solving Technique.
The PDSA Cycle
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Prof. Raghavendran V, MBA TQM 12MBA42

18. Problem- Solving Method
It is the extension of PDSA/PDCA Cycle
with scientific adaption/ approach which
yield great results, but in this method there
are 7 phases and all are integrated upon the
previous phase. These phase are the
framework of the objectives.
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Prof. Raghavendran V, MBA TQM 12MBA42

19. Problem-Solving Method
1) Identify the
opportunity
Plan for the future
2) Analyze the process
Act
6) Standardization the
solution
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5) Study the Results
Plan
Study
Do
3) Develop the optimal
Opportunity
4) Implement

20. JURAN TRILOGY
One of the best approaches developed by Dr. Joseph Juran.
It has 3 components:
Quality Planning
2. Quality Control &
3. Quality Improvement
1.
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Prof. Raghavendran V, MBA TQM 12MBA42

21. Trilogy
Quality Planning: It begins with external customers,
1. Once the customers are identified
2. Their needs are discovered.
3. Develop product or service features that respond to
customer needs.
4. Stabilize and optimize the product features to meet the
organizational & Customer needs
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Prof. Raghavendran V, MBA TQM 12MBA42

22. Trilogy
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Quality Control: it is used by operating forces to help and
meet the product, process and service requirements. It uses
the feedback loop and consist of the following steps:
Determine items to be controlled and their unit of measure.
Set goals for the controls & determine what sensors need to
be put in place to measure the product.
Measure the actual performance,
Compare actual performance to goals.
ActProf. Raghavendran V, MBA TQM 12MBA42
on the difference.

23. Juran’s Categories of Quality costs
Juran’s analytical methods could identify areas needing
improvement & could help make & track changes. They
were mostly Shop floor problems, he advocated a cost of
quality accounting system to make understand Top level
management and they were four distinct types.
 Internal Failure Cost
 External Failure Cost
 Appraisal Cost
 Prevention Cost
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Prof. Raghavendran V, MBA TQM 12MBA42

24.  Internal Failure Cost: Scrap, Rework, Retest, Downtime,
Yield losses and Disposition.
 External Failure Cost: Complaint adjustment, Returned
Material, Warranty Charges and Allowance.
 Appraisal Cost: Incoming material inspection, Inspection &
Test, Maintaining accuracy of test equipment, Material &
Service consumed and Evaluation of Stocks
 Prevention Cost: Quality Planning, New product review,
training, process cost, data acquisition & analysis, reporting
and Improvement projects.
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Prof. Raghavendran V, MBA TQM 12MBA42

25. Minimizing the Cost of quality
 COQ not only provided Management with a rupee cost
for defective product, it also established the goal of
quality programmes to keep improving quality.
 2 assumptions were made and they are
 Failure cost approached zero as defect became fewer and
fewer.
 Prevention and Appraisal together approach infinity as
defects to lower to lower levels
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Prof. Raghavendran V, MBA TQM 12MBA42

26. Cost Per
Good
unit of
Product
Internal + External
Failure Costs
Total Quality
Cost
To....
Minimal Cost of quality
------------------------------------------------I
I
I
I
I
I
Cost of Prevention
or Appraisal
Defect Rate
100% Defective
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To….
Prof. Raghavendran V, MBA TQM 12MBA42
100% Good
Optimal
Confor
mance
Level

27. Juran’s Breakthrough Sequence:
 Breakthrough in attitudes
 Identify the vital few projects/task
 Organize breakthrough in Knowledge
 Conduct the Analysis
 Determine how to overcome resistance to change
 Institute the change
 Institute controls
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Prof. Raghavendran V, MBA TQM 12MBA42

28. Crosby’s 14 point programme
 Management Commitment
 Q Improvement Team
 Zero defects day
 Q Measurement
 Goal Setting
 Cost of Quality Evaluation
 Error cause removal
 Q Awareness
 Recognition
 Corrective action
 Q Councils
 Zero defect Planning
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 Supervisor Training
 Do it all over again
Prof. Raghavendran V, MBA TQM 12MBA42

29. Taguchi’s Loss Function
 It is a statistical method to improve the Quality of
Manufacturing goods. He has contributed to statistics
are
 Taguchi’s loss function
 Philosophy of Off-Line Quality Control
 Innovation in the Design of Experiments (DOE)
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Prof. Raghavendran V, MBA TQM 12MBA42

30. Taguchi’s Loss Function
 It was shown that if the design intent of the target
value was the value at which the design, whether
product or process, functioned best, then any deviation
from that value meant an incremental deterioration of
performance and incurred a loss.
 This loss was passes to next customer (Internal or External).
 Ultimately both company and society face the loss in some
way.
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Prof. Raghavendran V, MBA TQM 12MBA42

31. Cost
Customer Tolerance
Limit
Customer Tolerance
Limit
A
A B
LL
UL
Parameter
The “Good Enough” Approach
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Cost
Prof. Raghavendran V, MBA TQM 12MBA42
B
LL
UL
Parameter
Taguchi Loss Function

32. Quality Circles
Objectives
 To give an opportunity to employees to use their wisdom &
creativity.
 To reduce errors & enhance quality productivity.
 To encourage team spirit and cohesive culture.
 To promote job involvement & participation.
 Increase employee motivation
 Harness problem solving capability.
 To build an attitude of problem prevention.
 To improve communication.
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Prof. Raghavendran V, MBA TQM 12MBA42

33. Quality circles
 To improve internal house keeping.
 To improve customer service.
 To facilitate achievement of business goals
 To improve & develop of the organization.
 To respect humanity & build happy bright work place
which are meaningful to work in.
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Prof. Raghavendran V, MBA TQM 12MBA42

34. Structure
Top
Management
NonMembers
Steering
Committee
Members
Facilitator
Coordinating
Agency
Leader/
Deputy
Leader
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Prof. Raghavendran V, MBA TQM 12MBA42

35. Steps in formation Quality Circles
1.
Head may call a staff meeting and explain the
following:
1.
2.
3.
Quality circle concept
Objectives of Quality circle
Advantages of Quality circle
Call for members would like to be members of
quality circle.
3. May group depending upon the functions performed.
2.
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Prof. Raghavendran V, MBA TQM 12MBA42

36. 4.
5.
6.
7.
8.
The section head may initiate the employees regarding
their grouping
Call a meeting & declare formation quality circle.
Give a name of quality circle.
Elect leader & deputy leader.
Q circle is over & now consists
1.
2.
3.
9.
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Facilitator
Leader
Members
The details quality circle to be reported to HR department
Prof. Raghavendran V, MBA TQM 12MBA42