tqm

1. Total Quality Management
By
Muruganantham.G
MBA, M.Phil, UGC-NET, Ph.D.
Assistant Professor - DOMS - NITT

2. MB 722 Total Quality Management
Objectives:
• To provide a basic understanding about the various aspects of quality tools and
techniques to enhance the productivity of an organization.
Unit 1 Introduction
• Principles and Concepts of Quality - Dimensions of Quality - The Deming
Philosophy - Quality Management Systems - Quality Planning - Functional planning
deployment from Strategic plans - Benefits of TQM.
Unit 2 Continuous Improvement
• Benchmarking - Quality Costs - Quality Audits - Product, Process and System -
Supplier Evaluation - Continuous Process Improvements - 5S Concepts.
Unit 3 Process Capability
• Six Sigma concepts - New Seven tools of Quality, Business Process Reengineering,
Quality Function Deployment - Failure Mode and Effect Analysis.

3. Unit 4 Business Excellence
• Business Excellence Awards (EFQM, Deming, Malcolm Balridge), Indian Quality
Awards and Case Studies - Human Resource Management in TQM environment.
Unit 5 HR Aspects
• Employee Involvement - Motivation - Teams - Reward System, Quality circles -
Introductory aspects of ISO 9000 series Standards and ISO 14000.
Text Books
• Dale H. Besterfield, Carol Besterfield, Glen H Besterfield and Mary Besterfield,
Total Quality Management, Pearson, New Delhi.
• Subburaj Ramasamy, Total Quality Management, Tata McGraw Hill, New Delhi.
• Janakiraman and Gopal, Total Quality Management, PHI, New Delhi.
Reference Books
• Juran, Gryna and Bingham, Quality Control Hand Book, McGraw Hill, New Delhi.
• Howard, Alan, Rosa and David, Quality Management, Tata McGraw Hill, New Delhi.
• Poornima M.Charantimath,Total Quality management, Pearson Education, New Delhi.

4. Introduction to TQM
Quality Concept Evolved in USA.
TQM concept evolved in Japan - world war II.
Edward Deming - use of statistical methods
RM…..Consumer research
TQM set a new trend in the Japanese industry by shifting the management’s
focus from profits to quality).
During 1980’s American….. Ford Motors, Xerox
Mfu Companies - Industrial Revolution
Q in India
No competition - Public sector, one or two players
Top Management - sold, cost, awareness & interest level - selling concept
1991 LPG era …competition, car, Marketing concept, customer is the king

5. Introduction to TQM cont…
COMPETITION CAUSES PERFORMANCE
Globalisation - Borderless world, Export - local Q, To succeed …
South Indian Companies
Mindset change
Indian brands - global market
Pharma, Sundaram, Six sigma, Tata steel
ISO
Survival ……
Customer Satisfaction
Competitiveness is measured by three parameters – Quality, price
and delivery.

6. Benefits of Quality efforts
• Increased Customer Satisfaction
• More efficient processes
• Higher productivity
• Lower costs
• Increased market share
• Higher Profits
• High employees morale

7. Total Quality Management
 TQM is a Management Approach - originated -1950’s. Become more
popular since early1980’s
 Description of the culture, attitude of the Org
 Act of managing the whole org, its suppliers and buyers to achieve
excellence.
Union of Japanese Scientists and Engineers(JUSE)
Defines TQM
“a set of systemic activities carried out by the entire organisation to
effectively and efficiently achieve company objectives to provide
products and services with a level of quality that satisfies customers,
at the appropriate time and price”.

8. TQM cont..
TQM is associated with ..doing right things right, first time.
Method by which management and employees involved in
the continuous improvement.

9. WHAT IS QUALITY ?
Juran(1974)…. “Fitness for use”
Crosby(1979) VP of International Telephone & Telegraph
(ITT)…
“Conformance to requirements or specifications”
Deming(1900 – 1993) statistician worked in western
Electric company….
“Quality should be aimed at the needs of the consumer,
present and future”.

10. Quality Cont…
Walter A Shewhart
• Pioneer of Modern Quality Control
• “founder of the control chart” (e.g. X-bar and R chart).
• originator of the plan-do-check-act cycle. (PDCA Cycle)
• perhaps the first to successfully integrate statistics, Engineering, and
economics.
• defined quality
objective quality: quality of a thing independent of people.
subjective quality: quality is relative to how people perceive it. (value)

11. Quality cont…
In ISO 9000 : a more definitive definition of quality is given.
“degree to which a set of inherent characteristics fulfills
Requirements”.
Degree - quality can be used with adjectives such as poor, good
and excellent.
Inherent - something, especially as a permanent characteristics.
Characteristics can be quantitative or qualitative.
Requirement is a need or expectation that is stated; customers,
and other interested parties.
The term quality is perceived differently by different people.

12. Quality Cont…
Quality is what the customer say, it is.
Excellence in everything.

13. Quality Cont…
Quality can be quantified as follows:
Q =P / E
Where Q - Quality, P - Performance, E - Expectations.
Quality of the product is decided by customer….
conformance to specifications, assured performance
level, safety, effective packaging, on - time delivery,
efficient technical service and caring for the
customer’s feedback.

14. Quality cont…
Quality is both a user oriented and a production oriented
expression.
Quality, therefore is
 Defined by the customers,
 A measure of achievement of customer satisfaction
 Value for money
 Keeping one’s word
 Ensuring no defects
 A precise and measurable variable
 Utility to the society.

15. Stakeholder Expectations
• Customers - Product Quality
• Employees - Career / Work Satisfaction
• Owners - Investment Performance
• Vendors - Continuing Business Opportunity.

16. Evolution of Quality
1920’s - QC - Process control;
- Acceptance sampling
1930’s - Great depression after world war
- Defense role in quality
1950’s - TQC, - Japanese QC
1960’s - QA in new product development
1970’s - Worldwide management of Quality
1980’s - Quality systems and standards
1990’s - Quality as a main winning point
2000’s - Continual improvement.

17. A good Quality process
 Driving the business from customer needs
 Setting a clear vision which is deployed down
into coordinated action
 Managing processes to their optimal capability
 Using the contribution of every person to the full
 Managing well beyond company boundaries
 Developing workers to manage and mangers to lead
 Becoming faster, leaner and more responsive to
market opportunities.

18. Dimensions of quality
Performance: Also called Functionality or Operationality.
It is the main operating characteristics of a product.
Example: Crystal clear picture, for clear sound etc., in a TV set.
Enhancement or Additional Features: It represents the additional
features supplementing the product’s basic function.
Example: Auto power off when not in use, Telephone directory
storage, In built videogames, child lock facility etc.,
Reliability: Probability that a product is performing its intended
function over its intended life and under the stated conditions.

19. Dimensions of quality cont..
Conformance: The extent to which the product’s design and
operating characteristics satisfy the pre . determined standards.
Durability: Measure of products. useful life,
Serviceability: Time consumed in servicing, Courtesy, Competence
and ease of repair or reconditioning of a product.
Aesthetics: Should appeal to senses. It is Human response to a
product . how it looks, feels, sounds, tastes or smells..
Reputation: Past performance, Brand image

20. New and old culture of Q
Q Elements
Definition
Decisions
Responsibility
Problem solving
Procurement
Emphasis
Manager’s Role
Prior to TQM
Product oriented
Short term
With TQM
Customer
Long term
Quality control
Managers
Price
Every one
Teams
Life cycle cost & partnership
Detection
Plan, assign
Prevention
Delegate, coach, facilitate
and mentor

21. Quality Management
Quality Management - coordinated activities to direct and control an
organization with regard to quality
QM = QP + QA + QC + QI
• Quality Plan-focuses on setting quality objectives
• Quality Assurance- providing confidence that quality requirements
will be fulfilled
• Quality Control - focused on fulfilling quality requirements
• Quality Improvement - focused on increasing the ability to fulfill
quality requirements

22. Quality Management
Quality Planning: Planning process to meet the customer
requirements
Define Q. Policy, Objectives and requirements.
Statement describes an org commitment to Q..
Guides everyone in the org.
Plan about the resources.
Identify your customer, Determine their needs, Translate them into
your language, Develop a product.
Juran’s Q Planning..

23. Principles of TQM
 Management commitment
 Customer Focus
 Continuous Improvement
 Employee Empowerment

24. Deming Philosophy
Edwards Deming had
proposed fourteen principles
towards quality achievement.
These principles are summarized
as follows:

25. 1.Create and Publish the Aims and Purposes of the Organization:
 Long range goals, resource allocation for innovation,
 R&D, training and continuous education for the employees.
2. Adopt new philosophy :


Focus on the customer satisfaction,
prevention of non - conformance, rather than detection and correction,
3. Understand the Purpose of Inspection:

 Eliminate the need for mass inspection by building quality into the product.
 Mass inspection is costly and unreliable.
 Mass inspection is managing for failure and Defect prevention is managing for
success
To improve the process and reduce its cost, use of statistical techniques should
be adopted.

26. 4. Stop Awarding Business Based on Price Alone:
 End the practice of selecting the suppliers, based solely on price.
 Price is meaningless, without quality.
 Minimize total cost by working with a single supplier, thereby
developing a long term ethical and economical relationship,
loyalty and trust with the suppliers.
5. Improve constantly and forever - the system of production and
service to improve quality and productivity and to decrease
cost.

27. 6. Institute training on the job.
Each employee is to be trained in quality improvement skills,
communication skills, statistical methods and problem solving methods.
Management must allocate resource to train employees to perform their
jobs in the best possible manner.
7. Teach and Institute leadership:
Improving Supervision is Management’s responsibility.
Management must provide supervisors with training on analytical methods.
Instead of focusing on a negative, fault-finding atmosphere, Supervisors
should create a positive, supportive climate.
All communications must be clear from top management to supervisors to
operators.

28. 8. Drive out Fear, Create Trust, and Create a climate for Innovation:



 Fear is caused by lack of job security, performance appraisal by
superiors, ignorance of organizational goals, poor supervision and poor
knowledge of the job.
All the employees are to be treated with dignity - Only then, they can
provide ideas and act upon for improvement.
Management must encourage open, effective communication and team
work.
Management can begin by providing workers with adequate training,
good supervision, and proper tools to do the job.
9. Optimize the Efforts of Teams and groups:
Break down barriers between departments, research, design, sales and
production .
must work together to foresee problems in production .

29. 10. Eliminate slogans, exhortations and numerical targets for the
workforce:
Goals - achievable and the methods are known and made available, to all the
employees.
Improvements in the process cannot be made unless the tools and methods are
available.
11. Eliminate quotas or work standards:
 Quota and work standards give importance to quantity, rather than quality.
 They encourage poor workmanship in order to meet their quotas
 Instead of fixing quantity, the management must concentrate on the methods for
improvement and quality.
 Statistical method of Process Control may replace Quotas.

30. 12.Remove barriers that rob people of their
workmanship;
right to pride of
Loss of pride in workmanship occurs in organizations, because
following reasons:
of the
 Workers - unaware how to relate their efforts to the organization’s missions.
 They are blamed for system failure.
 Poor designs leading to waste of product or service.
 Inadequate training.
 Punitive supervision.
 Inadequate or faulty equipments and tools provided for performing the job.
When workers feel proud of their work, they will grow fully and successfully, in
their job and out of their job.
13.Encourage Education and Self-Improvement

31. 14. Put everyone in the company to work to
accomplish the transformation.
Create a structure in top management that will
emphasize the preceding thirteen points every day.
The principles may be aptly called,
“codes of ethics for Quality”.

32. Barriers to TQM implementation
• Lack of Management commitment
• Inability to change Organisation culture
• Improper planning
• Inadequate use of empowerment
• Lack of continuous training and education
• Paying inadequate attention to internal and external
customers.
• Failure to continually improve

33. Strategic Planning to functional planning

34. Benchmarking
Concept of Benchmarking taken the new meaning since 1970s.
Companies compared the performance CY… LY
Parameters like cost, profit, sales volume, expenses, etc…..Target
In a Market driven – hyper competitive – Globalised economy
“The process of identifying, understanding, and adapting
outstanding practices and process from organisations
anywhere in the world to an organisation to improve its
performance”
…….Systematic and continuous measurement process………

35. Benchmarking
Systematic method by which organisations can measure
themselves against the best in class org in order to achieve
the best of the best.
It is the search for the industry best practices that lead to
superior performance.

36. Benchmarking
Reasons to Benchmark:
Helps to set new goals and adopts the best practices
Helps to develop the strengths and reduce the weakness
Benchmarking is time and cost efficient
Types of Benchmarking:
a) Internal
b) Competitive – to improve the performance to the level of the
competitors
c) Functional or process or generic benchmarking – certain
process which are common across the industry
Marketing, Finance, Human Resource, R&D, etc

37. Re-engineering
Reverse engineering
…Product Benchmarking (Reverse engineering)

38. Benchmarking process:
a)Identify what function is to be benchmarked, (CSF)
…..PROCESS that causing most trouble, factors that are not
performing up to the satisfaction level, critical factors that
result in customer satisfaction, areas in which more
competition,
Process or function that would help to achieve Competitive
Advantage.
b)Identify best-in -class company
c) Identify the data that to be collected
d) Analyse the data to arrive at the current performance gap

39. Benchmarking
e) Communicate the benchmark findings to the employees
f) Establish functional goals to achieve objectives
g) Develop action plan, implement and monitor the progress.
Examples:
Benefits of Benchmarking:
 Company will become competitive
 Customer requirements can be taken care of
 Helps in continuous improvement
 Understanding the best industry practices

40. Benchmarking
…..
Reasons for failure of Benchmarking:
Lack of commitment,
wrong selection process,
Not being cost effective,
wrong selection of team members and not positioning the
benchmarking within a larger strategy

41. Xerox –Case analysis

42. Xerox –Case analysis
Xerox 914 – First plain copier- 1959….New industry
During 1960’s high growth….selling all it could produce
CA.. STRONG PATENT, GROWING MARKET, LITTLE COMPETITION
No focus on customer
During 1970’s IBM, Kodak,,,,several Japanese companies
High Q Low Volume copiers ……..ignored
Federal Trade commission accused xerox ..illegally monopolizing
the copier business 1700 patents to competitors
1980 market share fell down by less than 50 per cent
Company would not survive

43. Xerox –Case analysis
Rework, scrap, excessive inspection, lost business costing more
than 20 per cent of revenue
Comparing with competition
In 1983 company president David Kearns …need for long range
planning
Team……Q strategy for Xerox
Benchmarked more than 200 process

44. Customer satisfaction was important
Malcolm Baldrige National Q award
1989David Q is
A Race without Finish Line………

45. Quality Cost
Appraisal cost
– Inspection and Testing of incoming material, In-process inspection,
Final inspection,
– Product Inspection and Testing
– Maintaining accuracy of test equipment
Prevention Cost
– Quality Planning & Inspection, New Products Review, Product Process Design
– Process Control, Quality training, TQM
Failure cost
Internal Failure Cost
External Failure cost

46. • Internal Failure Costs
– Scrap, Rework, Retest, Failure Analysis
– Downtime,Yield Losses.
External Failure cost
– Complaint Adjustment, Returned Product
– Warranty Charges, Liability Costs, Indirect Costs

47. 5S Principle
• SEIRI –
• SEITON –
• SEISO –
• SEIKETSU –
• SHITSUKE -

48. THE 5S PRINCIPLES
• SEIRI – Organisation/Sort out
• SEITON – Orderliness/Systemize
• SEISO – The Cleaning/Shining
• SEIKETSU – Standardize
• SHITSUKE - Sustain/Discipline

49. IDEA BEHIND 5S
• The 5S philosophy focuses on effective workplace
organisation, helps to simplify the workplace environment and
reduce waste, while improving quality and safety.
• Developed by the Japanese - Housekeeping System.
• Helps Create a Better Working Environment and a
Consistently High Quality Process.

50. 1. Seiri or sorting
Seiri means sorting through everything in each work area. It
requires keeping only what is necessary.
• Materials, tools, equipment and supplies that are not
frequently used should be moved to a separate, common
storage area. Items that are never used should be discarded.
This makes it easier to find the things needed and frees up
additional space.

51. 2. Seiton or systematise
• This is the next step. It requires organising, arranging and
identifying everything in a work area for efficient retrieval and
return to its proper place.
• Commonly used tools are readily available; storage areas,
cabinets and shelves are properly labeled; and painted to
make it easier to spot dirt, spaces are outlined on the floor to
identify work areas, movement lanes, storage areas, finished
product areas and so on.

52. 3. Seiso or shining
• Once everything from each individual work area to the entire facility is sorted and
organised, Regular cleaning and inspection makes it easy to spot lubricant leaks,
equipment misalignment, breakage, missing tools.
• When done on a regular, frequent basis, cleaning and inspecting does not take a
lot of time and, in the long run, actually saves times.
4. Seiketsu or standardise
• Seiketsu ensures that the first three steps of the 5S programme continue to be
effective.
• The good practices developed in the first three steps need to be standardized.
• Therefore, organisations must develop a work structure that will support the new
practices and turn them into habits.

53. • Shitsuke or self-discipline
• This implies continuous training and maintenance of standards. The
organisation must build a formal system for monitoring the results of the
programme. A follow-up is a must for the above four steps to continue to be
practice.
• There will have to be continuous education about maintaining standards.
When there are changes that will affect the 5S programme -- such as new
equipment, new products or new work rules -- it is essential to make
changes in the standards and provide training.

54. • A good way to continue educating employees and
maintaining standards is to use 5S posters and signs.
• If tools and materials are conveniently located in
uncluttered work areas ----
• Operators spend less time looking for items
• This leads to higher workstation efficiency, a
fundamental goal in mass production

55. • TIME SAVING
• QUICK RETRIEVAL
• ACCIDENTS & MISTAKES MINIMIZED
• INCREASES SPACE
• CREATES WORKPLACE OWNERSHIP
LITMUS TEST FOR 5S
• 30 SECOND RULE
• ONE MUST LOCATE THE ITEM WITH IN 30 SECOND IF 5S IS PROPERLY
IMPLEMENTED

56.  ICICI Bank saved more than Rs 600,000 a year on payments to third-party
warehousing companies, since records can now be stored in the office.
 Another advantage is that Five S could be easily followed by everybody
from the "peon to the president",
 The best thing about Five S is that it is extremely simple and yet powerful.
More importantly, the benefits are visible immediately. "Five S is a
workplace transformation exercise”.