Total Quality Management

1. GE6757-TOTAL QUALITY
MANAGEMENT

2. OBJECTIVES
• To understand the Quality Management
principles and process.

3. SYLLABUS
UNIT I
INTRODUCTION
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 -
Quality statements - Customer focus - Customer orientation,
Customer satisfaction, Customer complaints, Customer
retention - Costs of quality.

4. UNIT II
TQM PRINCIPLES
Leadership - Strategic quality planning, Quality Councils -
Employee involvement – Motivation, Empowerment, Team
and Teamwork, Quality circles Recognition and Reward,
Performance appraisal- Continuous process improvement -
PDCA cycle, 5S, Kaizen-Supplier partnership– Partnering,
Supplier selection, Supplier Rating.

5. UNIT III
TQM TOOLS AND 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.

6. UNIT IV
TQM TOOLS AND TECHNIQUES II
Control Charts - Process Capability - Concepts
of Six Sigma - Quality Function Development
(QFD) -Taguchi quality loss function - TPM -
Concepts, improvement needs - Performance
measures.

7. UNIT V
QUALITY SYSTEMS
Need for ISO 9000 - ISO 9001-2008 Quality
System - Elements, Documentation, Quality
Auditing -QS 9000 - ISO 14000 - Concepts,
Requirements and Benefits - TQM
Implementation in manufacturing and service
sectors..

8. TEXTBOOK:
1.Dale H. Besterfiled, et at., "Total quality Management",
Pearson Education Asia, Third Edition,Indian Reprint
2006.
REFERENCES:
1.James R. Evans and William M. Lindsay,"The
Management and Control of Quality", 8th Edition,First
Indian Edition, Cengage Learning, 2012.
2.Suganthi.L and Anand Samuel,"Total Quality
Management", Prentice Hall (India) Pvt. Ltd., 2006.
3.Janakiraman. B and Gopal .R.K., "Total Quality
Management - Text and Cases", Prentice Hall (India) Pvt.
Ltd., 2006.

9. UNIT – I
What is Quality ?
• Quality is the degree to which a commodity meets
the requirements of the customer .
• Quality is in its essence a way of management of
the organization.
• A distinctive attribute or characteristic possessed
by someone or something.

10. What is Quality ?
• Quality is conformance to customer requirements
• Quality is about meeting the minimum standard
required to satisfy customer needs.
• Quality is fitness for use
• Quality is the totality of features and
characteristics of a product or service that bear on
its ability to satisfy stated and implied needs of
customer.

11. Quality in management
• A quality management system (QMS) is a
collection of business processes focused on
achieving quality policy and quality objectives
to meet customer requirements
Quality In manufacturing
• a measure of excellence or a state of being free
from defects, deficiencies and significant
variations.

12. Quality in education
• Quality in education is a dynamic concept. It
evolves with time and is subject to social,
economic and environmental conditions.
• However, international human rights law
provides a general legal framework that
guarantees quality education.

13. QUANITIFICATION OF QUALITY
Q= P / E
P = Performance
E = Expectations
Q = Quality

14. Need for quality
• Changing customer – The new customer
everytime.
• Changing product nature – The shift from low
volume, high price to high volume, low price
have resulted in a need to reduce the internal
cost of poor quality.

15. Need for quality
• Product complexity – As systems have become
more complex, the reliability requirements for
suppliers of components have become more
stringent.
• Competition – Today’s market demand high
quality products at low cost. Having `high quality’
reputation is not enough! Internal cost of
maintaining the reputation should be less

16. Need for quality
• Higher levels of customer satisfaction – Higher
customers expectations are getting spawned by
increasing competition.
• The quality of your work defines you- Whoever
you are, whatever you do, I can find the same
products and services cheaper somewhere else.
But your quality is your signature.

17. Evolution
• Inspection
• QC
• QA
• TQM

18. INSPECTION
• Tool to check Q - But how…??
• Inspection department
• End of pipe approach – considered
• Result
• More wastage
“END JUSTIFIES MEANS”

19. QC
• Process imp
• Performance data
• Statistical tech for control
“IF THE MEANS IS RIGHT, THEN THE END
SHOULD ALSO BE RIGHT”
What about people outside…???

20. QA
• Assurance for stakeholders
• Quality manual----- Y…??
for share holders
• Documentation important
“SAY WHAT YOU DO AND DO WHAT YOU SAY”
• Audit

21. TQM
• Customer focus
• Q based on customers
• Made a philosophy
• What type of work.?

26. DIMENSIONS OF QUALITY
• Quality has 2 dimensions.
These dimensions are
1. Product Quality
2. Service Quality

27. Product Quality
• Performance
• Features
• Usability
• Conformance
• Usability
• Durability
• Serviceability

28. Product Quality (cont.)
• Safety
• Efficiency
• Reputation
• Aesthetics

29. Service Quality
• Accessible ( factor….? )
• Courtesy
• Response
• Time and Timeliness
• Customer friendly
• Completeness
• Competency
• Consistency

31. INTRODUCTION TO TQM
Why TQM?
• World class competition
• The goal is customer satisfaction.

32. Contnd…
• Total
• Quality
• Management
“TQM is the art of managing the whole to achieve excellence.”

33. CHARACTERISTICS OF TQM
1. TQM is a customer oriented.
2. TQM required a long term commitment for
continuous improvement of all processes.
3. TQM is teamwork.
4. TQM requires the leadership of top
management and continuous involvement.
5. TQM is a strategy for continuous improving
performance at all levels and in all areas of
responsibility.

34. TQM BASIC CONCEPTS
• Management Involvement
• Focus on customer
• Involvement and utilization of entire work
force
• Treating suppliers as partners

35. TQM BASIC CONCEPTS(cont.)
• Performance measures
• Continuous improvement

36. TQM Framework

38. PRINCIPLES OF TQM
• Customer’s requirements must be met the
first time, every time.
• There must be agreed requirements, for both
internal and external customers.
• Everybody must be involved, from all levels
and across all functions.

39. PRINCIPLES OF TQM(cont.)
• Regular communication with staff at levels is
must. Two way communication at all levels
must be promoted.
• Identifying training needs and relating them
with individual capabilities and requirements
is must.

40. PRINCIPLES OF TQM(cont.)
• Top management’s participation and
commitment is must.
• A culture of continuous improvement must
be established.
• Emphasis should be placed on purchasing and
supplier management
• Every job must add value.
• Quality improvement must eliminate wastes
and reduce total cost.

41. PRINCIPLES OF TQM(cont.)
• There must be a focus on the prevention of
problems.
• A culture of promoting creativity must be
established.
• Performance measure is a must at
organization, department and individual
levels. It helps to asses and meet objectives of
quality.
• There should be focus on team work.

42. OBSTACLES (BARRIERS) IN
IMPLEMENTING TQM
 Lack of Management Commitment
 Inability to change Organizational culture
 Improper planning
 Lack of continuous training and education
 Failure to continually improve
Incompatible organizational structure and
isolated individuals and departments

43. OBSTACLES (BARRIERS) IN
IMPLEMENTING TQM(cont.)
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

44. BENEFITS OF TQM
Improved quality
 Employee participation
 Team work
 Working relationships
 Customer satisfaction

45. BENEFITS OF TQM(cont.)
 Employee satisfaction
 Productivity
 Communication
 Profitability
 Market share

46. 46
Guru’s of TQM
• Walter.A.Shewhart - TQC &PDSA
• W.Edwards Deming - 14 Points & PDCA
• Joseph.M.Juran - Juran’s Trilogy
• A.Feiganbaum - Customer
Requirement, Employee Involvement, TQC.

47. W.E.Deming - Biography
• William Edwards Deming (Oct 14,1900-Dec 20,
1993)
• An Engineer (EE)
• B.S - University of Wyoming at Laramie (1921)
• M.S – University of Colorado (1925)
• Ph.D - Yale University (1928)

48. 48
CONTRIBUTIONS OF W. Edward
Deming
• Encouraged the adoption of a systematic
approach to problem solving known as the
Deming or PDCA (Plan Do Check Act) cycle
Plan
DoCheck
Act
- Objectives
- Methods
- Train
- Execute
- Against objectives
- Immediate remedies
- future actions

49. Deming’s 14 Points for
Management
• Create constancy of purpose
• Adopt the new philosophy
• Cease dependence on inspection
i) Acceptance Sampling
ii) Mass inspection
iii) Defect prevention

50. Deming’s 14 Points for
Management(cont.)
• Stop business with price
• Improve constantly and forever
• Institute training
• Teach and institute leadership
• Drive out fear
• Break Barriers
• Eliminate exhortations

51. Deming’s 14 Points for
Management(cont.)
• Eliminate numerical quotas for the workforce
and numerical goals for management
• Provide pride of workmanship
• Education and Self-improvement for everyone
• Accomplish transformation.
Eg:- Hillerich & Bradsby Co.,

52. Juran - Biography
• Joseph Moses Juran(December 24, 1904 –
February 28, 2008)
• B.S – University of Minnesota(EE)
“Management Guru”

53. THE JURAN TRILOGY
• Juran views quality as fitness for use.
• Juran Trilogy is designed to reduce the cost of
quality over time.
1. QUALITY PLANNING
2. QUALITY CONTROL
3. QUALITY IMPROVEMENT

54. 1. QUALITY PLANNING
• Determine internal & external customers
• Discover their needs
• Develop the processes able to produce the
product / service features
• Transfer plans to operations

55. 2. QUALITY CONTROL
• Control - used by operating forces
• Determine items to be controlled
• Set goals for the controls
• Measure actual performance
• Compare actual performance to goals
• Act on the difference

56. 3. QUALITY 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.

57. Juran’s Steps to Quality
Improvement
• Repair (Types…Two…)
• Refinement
• Renovation
• Reinvention

59. CONTRIBUTIONS OF CROSBY
• Phillip B. Crosby (1926-2001)
• Degree – Ohio College of Podiatric Medicine
• In Navy
“Quality is free”

60. ABSOLUTES OF CROSBY
The Four absolutes of quality are
• Quality is conformance to requirements.
• Prevention of nonconformance is the
objective (not appraisal)
• The performance is zero defects (Not close
enough)
• Measurement of Quality is the cost of
nonconformance

61. Crosby’s 14 Steps to Quality
Improvement
• Management Commitment
• Quality Improvement Teams
• Measure Processes
• Cost of Quality
• Quality Awareness
• Correct Problems

62. Crosby’s 14 Steps to Quality
Improvement(cont.)
• Monitor Progress
• Train Supervisors
• Zero Defects Day
• Establish Improvement Goals
• Remove Fear
• Recognize
• Quality Councils
• Repeat the Cycle

63. 63
Comparison
Deming Juran Crosby
Definition of
quality
Continuous
improvement
Fitness for use Conformance to
requirements
Emphasis Tools/system Measurement Motivation
(behaviour)
Types of tools Statistical
process control
Analytical, cost-
of-quality
Minimal use
Use of goals and
targets
Not used Significant
emphasis
Posted goals for
workers

64. Quality statements
• What you consider as 'quality' ??
• Outlines the processes

65. Contd..
The statements are
• Vision Statement
• Mission statement
• Policy statement

66. Quality statements
• Vision statement – desired future goal
• Mission statement – a statement of purpose –
who we are, who are our customers, what we
do , and how we do it.
• Quality policy – A guide

67. CUSTOMER
• Who is a customer?
• Types of Customers
• Customer focus

68. Goals of Customer Focus:
End goal of customer focused strategies is the same:
Boosting retention and repurchase =
more sales!!!
Creating Better
Products or
Services
Offering
customer
experience
Building deeper
customer
relationships

69. Customer satisfaction
• Customer is the Boss or ’King’
• Feel
• Can’t measure
• ACSI

70. Norman’s Customer satisfaction model
CustomerQuality C,Q

71. Teboul Model of Customer Satisfaction
•
Customer needs
Company
Product/Service
offer

72. Customer retention
• Next level
• Connection
• NPS

73. CUSTOMER COMPLAINTS
• Customer perceptions
• Survey by ASQ

74. Quality Costs
COST OF QUALITY IS THE INVERSE
COST OF NON QUALITY

75. Types of Quality Costs
The cost of quality is generally classified into
four categories
1. Cost of Prevention
2. Cost of Appraisal
3. Cost of Internal Failure
4. Cost of External Failure

76. Cost of Quality
• Quality affects all aspects of the organization
• Quality has dramatic cost implications of:
– Quality control costs
• Prevention costs
• Appraisal costs
– Quality failure costs
• Internal failure costs
• External failure costs
Early detection/prevention is less
costly

77. Cost of Quality – 4 Categories