chapter 1 tqm concept

Chapter – 1:

Concept of Quality and Total Quality Management

‘Quality’ is not an option but it is a compulsion of EVERY business organization today.

‘Quality’ is not an option but it is a compulsion of EVERY business organization today.

Prof. Dr. Shyamal Gomes // HRM // XISS 2012

What is Quality?• Aristotle : Quality is not an art it is Habit

• J.M. Juran : Fitness for Use.•• W. Edward Deming : Continuous Improvement.

• Philip Crosby : “Conformance to specifications”• Dr. Kaoru Ishikawa: Most economical, useful and

always satisfactory to the customer / audience.

• Broh: Quality is the degree of excellence at an acceptance price and control of variability at an acceptable cost.


Therefore • Quality is a relative term.

• It is an attribute of a product or service that fulfills or exceeds the human expectations. These expectations are based on the intended use and selling / service price.

• It is somewhat of an intangible character based on perception.


• Quality can be quantified as follows:• Q=P/E• Where, Q = Quality

P = PerformanceE = Expectations

• If Q is greater than 1.0 then the customer has a good feeling about the product or service.

How can we measure Quality?


Key Dimensions of QUALITY: (David A.Garvin-1988)

1. Conformance: Meeting the specifications of the customer.2. Performance: Primary product functions such as clarity of voice

received in Mobile phone, Radio.3. Features: Added functions (secondary functions) to a product such

as recording system in a television set.4. Durability: Lifetime of the products, which include repairs.5. Reliability: The probability of a product performing its intended duty

under stated conditions without failure for a given period of time.6. Service: Ease of repair7. Response: Human interface, such as courtesy of the service

personnel while registering a complaint from customer and while repairing at the customer’s site.

8. Reputation: Customer’s perception about the product which can be understood from a market research survey.

9. Aesthetics: The external finish given to a product to attract the customer.


Juran’s Trilogy

QUALITYCONTROL

QUALITY IMPROVEMENT

QUALITY PLANNING


Quality Planning (05) Quality Control (07)

Quality Improvement (08)

Establish quality Goal

Identify customer & their needs

develop product features

Develop process features

Establish process controls and Transfer to operation

Choose control subjectsChoose units to

measureSet goalsCreate a sensorMeasure actual

PerformanceInterpret the

differenceTake action on

the difference

Prove the needIdentify projectsOrganize project

teamsDiagnose the

causesProvide remediesDeal with the

resistanceChange and

controlHold the gains

The Universal Process for Managing QUALITY: 20 CONSTITUENTS

The Cost of Poor Quality (COPQ)Prevention Cost

Cost related – Market Research, designing, training and perfuming acceptance sampling of raw materials, consultation with suppliers, Six Sigma and others – first run entry product

Appraisal Cost

Costs associated with routine Measuring, evaluating, inspection and auditing cost – during goods to product

Internal Failure Cost

Costs relate to the failure of the products to meet customer specifications prior to its dispatch to the customer, like cost of labour, material, machines per hour, scarp, rework, cost of employee morale etc. – during goods to supply.

External Failure

Costs incurred the defected product by the company after the product has been delivered to the customers and failure of the product take place at the customer’s end like cost of warranty , service charge, cost of loss of consumer good will etc.- after delivering the product.

•• TQM is the art of managing the whole TQM is the art of managing the whole to achieve excellenceto achieve excellence.

• TQM is a Cultural Change

• TQM is an operational Phil. / a smart attempt with primary attentions are Customer/employee care, zero defect and continuous Improvement.

What is Total Quality Management (TQM)?

What is TQM - JUSE?The Japanese Union of scientists and Engineers (JUSE) define that TQM is a set of systematic activities carried out by the entire organization to effectively and efficiently achieve company objectives so as to provide product’s and services with a level of quality that satisfies customers at the appropriate time and price.


Principles and Core values of TQM:

Principles Core Values

Delight the Customers Customer Satisfaction

Internal customers are real partner

Management by Fact All work is process oriented

Management commitment

People-based Management Team work

People make quality

Continuous Improvement Continuous improvement cycle

Prevention

Committed Management AND Scientific Organizational structure for support

Special focus on Customer – both internally and externally

Effective involvement of Entire workforce

Continuous improvement of the business and production Process

Effective Performance Measuring Process

Treating Suppliers as Partners

TQM

Concepts


Quality Element Previous State On TQM

Definition Product Oriented Customer Oriented

Priorities Second to service and cost First among equals of service and costs

Decisions Short term Long term

Emphasis Detection Prevention

Errors Operations System

Responsibility Q.C. Department Every one

Prob. Solver Managers Team

Procurement Price Life – cycle costs, Partnership

Managers Role Plan, Assign, Control and Enforce

Delegate, Coach, Facilitate and Mentoring

Cultural Difference

Obstacles to successful ImplementationAccording to Robert J.Masters, there are 8 common obstacles, these are:

1. Improper planning2. Lack of continuous training and education3. Incompatible organizational structure and isolated

individual and departments4. Ineffective measuring techniques and lack of access of

data and results5. Paying inadequate attention to internal and external

customers6. Inadequate use of empowerment and team work7. Failure to continually improve 8.Inability to change organizational culture


The Road – map to Obtain Total Quality: “Organizational Analysis Model”

Top management commitment and involvementCustomer involvementDesign products for qualityDesign production processes for qualityControl production processes for qualityDevelop supplier partnershipsCustomer service, distribution and installationBuilding teams of empowered employeesBenchmarking and continuous improvement by using the effective tools and techniques like TPM, SIX SIGMA, Team Action through PDCAQuality Audit

Benefits of TQM

• Holistic Development of an Organization

• High productivity in lowest cost• Competitive position in the market• Congenial AND participatory work

environment• Brand Image


TQM in Indian ScenarioStep – 1(1991)

The year 1991 (economic liberalization) brought about a lot of changes in the Indian Economy and over all business environment in our country.

Step – 2(1992 -93)

Lots of Foreign MNCs started operations in India in the form of Joint ventures (JV) like – Hero Honda, Maruti Suzuki, etc.

Step – 3(1996 -97)

Professor Yasutosi Washio, has predicted that the quality of Indian man will overtake that of Japan in 2013.

Step – 4(1998 - 2003)

Mahindra’s Tractor unit is the first tractor unit in the world to win DEMNG Award.

Step – 5(2004-onwards)

Indian industries even small industries interested to evolve themselves under total quality management process by using the tools and techniques like TPM (Total Productive Maintenance) and other standards. Indian Industries started to win TPM and Deming awards as a centre of business excellence.


Project Assignment ( Additional)

1.Browse the websites of any five companies (Multinational) having an explicit mention of quality in their mission, vision, values and or philosophy.

2.Or conduct an empirical survey of companies in your state to find out the number of companies having a strategic focus to Total Quality Management.

Next : Introduction to Major Quality Gurus and their contributions


Thanks …………….

chapter 1 tqm concept

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