What is Quality?

Quality is “fitness for use”

(Joseph Juran)

Quality is “conformance to requirements”

(Philip B. Crosby)

Quality of a product or services is its ability to satisfy the needs and expectations of the customer

What is TQM?

Constant drive for continuous

improvement and learning.

Concern for employee

involvement and development

Management by Fact

Result FocusPassion to deliver customer value /

excellence

Organisation response ability

Actions not just words

(implementation)Process

Management

Partnership perspective (internal / external)

TQM is an integrated organisational approach in delighting customers by meeting their expectations on a continuous basis through everyone involved with the organisation working on continous improvement in all services, products and processes along with proper problem- solving methodology.

TQM is built on a foundation of ethics, integrity and trust. It fosters openness, fairness and sincerity and allows involvement by everyone. This is the key to unlocking the ultimate potential of TQM

Communication is a strong mortar of TQM. Communication means a common understanding of ideas between the sender and the receiver. The success of TQM demands communication with and among all the organization members, suppliers and customers

Evolution of TQM

The concept of Total Quality Management (TQM) was developed by an American, W. Edwards Deming, after World War II for improving the production quality of goods and services. Mr. Deming is regarded as “The quality Guru who never gave up.”

But it was the Japanese who adopted TQM more seriously in 1950 to resurrect their postwar business and industry, used it to dominate world markets by 1980.

Contd.

The 1980’s saw an explosion in the use of statistical methods and quality methodology in both manufacturing and non-manufacturing organisations.

Mr. Subodh Bhargava, Chief Executive of Eicher, recently revealed an interesting fact that TQM is not new to India and its roots in Indian ancient scriptures like the Upanishads and the Srimad Bhagavadgita.

Importance of TQM for services sector Total Quality Management is the key mantra for the manufacturing industry, but its benefits have been better realized by intense customer-oriented service industries — be it fast moving consumer goods (FMCG), retail, hospitality, telecom or banking.

In service organisations, the TQM challenge lies in establishing smooth connectivity between business processes so as to retain the customer.

A quality control approach to cover all processes would be beneficial to every Organisation.. Since in a service industry every aspect of quality is associated with every employee, quality Control department has a key and a very important role to play.

Putting in place an effective TQM mechanism in a service industry requires patience and commitment on the part of the management and the workforce to satisfy the customer.

Contd.

Over 60 % of the organization's future revenue will come from the existing customers.

A 2 percent increase in customer retention has an equivalent impact upon profitability as a 10 percent reduction in operating costs.

Upto 96% of unhappy customers do not in fact complain, but they are three times more likely to communicate a bad experience to other customers than a good one

If a customer complains and the organization responds effectively to the product or service failure, then the loyalty of the customer can actually increase

It costs 5 times as much to attract a new customer as it costs to keep an old one.

“ In the future there will be two kinds of companies – those who have implemented Total Quality and those who have gone out of business; you do not have to do this since survival is not compulsory”

-Dr. Edward Deming

The Principles of Total Quality Management (TQM) are now recognised characteristic of most of the successful businesses world over.

Learning

LEARNING AND TQM

Process Improvement

Quality Improvement

Customer Satisfaction

Shareholder Satisfaction

Employee Satisfaction

TOTAL QUALITY MANAGEMENT

Continuous Improvement or Kaizen

Quality Circles

Benchmarking

Just-in-Time (JIT)

Taguchi Concepts

Knowledge of TQM Tools

Kaizen Practice

Kaizen programme can be divided into three segments depending upon the complexity.

1.Management- oriented Kaizen

2.Group- Oriented Kaizen

3.Individual- Oriented Kaizen

Kaizen Movement or 5S movement

Seiri – straighten up

Seiton means putting things in order

Seiso means to clean up

Seiketsu means personal cleanliness

Shitsuke means discipline

Quality CircleQuality Circle

QC is a small group of employees in the same workarea QC is a small group of employees in the same workarea or doing a similar type of work who voluntarily meet or doing a similar type of work who voluntarily meet regularly to identify, analyze and resolve work- related regularly to identify, analyze and resolve work- related problems , leading to improvement in their total problems , leading to improvement in their total performance and enrichment of their worklifeperformance and enrichment of their worklife

Bharat Heavy Electricals Limited (BHEL), an engineering company was the first one to initiate quality circles in India.

Some organisations in India give different Individual to quality Circles .. For instance

Air India- Jet Quality Circles, 7 Aces, Safe Air Quality Circles, Quality Brothers etc..

BHEL call Quality circles by their serial numbers like QC1, QC2, QC3, QC4 etc..

Madras Motors- Vallavar, Ganga, Bharthi etc..

BenchmarkingBenchmarking

Benchmarking is the systematic comparison of Benchmarking is the systematic comparison of elements of performance of an organisation elements of performance of an organisation against those of other organizations, usually with against those of other organizations, usually with the aim of mutual improvement.the aim of mutual improvement.

Types of BenchmarkingTypes of Benchmarking

Internal BenchmarkingInternal Benchmarking

Competitive BenchmarkingCompetitive Benchmarking

Functional BenchmarkingFunctional Benchmarking

Generic BenchmarkingGeneric Benchmarking

Just In Time (JIT)

Just- in time is an approach to minimize waste in manufacturing in the form of time, materials, energy and error.

The objectives of JIT are

1) To reduce the set up times and lot sizes

2) To achieve ‘zero defects’ goal in manufacturing

3) To focus on continuous improvement

4) To eliminate waste and all non-value adding activities by systematically identifying these.

3M’s- Muda, Muri & Mura

These 3 Ms should be avoided to implement of JIT

◘Muda means Waste

◘Muri means Excess

◘Mura means unevenness

Taguchi ConceptsTaguchi Concepts Taguchi Concepts provides an alternative for the Taguchi Concepts provides an alternative for the

relationship between the performance of cost and relationship between the performance of cost and quality.quality.

Taguchi further maintains that the relationship is quadratic Taguchi further maintains that the relationship is quadratic and the cost varies with the square of the deviation from and the cost varies with the square of the deviation from the target . The Taguchi loss function is therefore the target . The Taguchi loss function is therefore represented by represented by

L(Y) =K(Y-M)L(Y) =K(Y-M)22 where where L= Loss associated with parameter YL= Loss associated with parameter YM= target expected M= target expected K= ConstantK= Constant

Capability Maturity Model (CMM)

It is a way to develop and refine an organization's processes mainly for the purpose of developing and refining software development processes.

The model describes the maturity of the company based upon the project the company is handling and the related clients.

The CMM was originally intended as a tool to evaluate the ability of government contractors to perform a contracted software project. Though it comes from the area of software development, it can be, has been, and continues to be widely applied as a general model of the maturity of processes

Pareto Analysis Pareto, an Italian economist discovered a universal relationship between value and quantity.

He used this technique for assessing uneven distribution of wealth.

Pareto charts gave rise to “80-20 rule” which suggests that 80 percent of an organization's problems came from 20 percent of its tasks.

Pareto Analysis helps in identification of the “Vital few” from the “trivial many” at a glance.

Pareto Analysis can be carried out for the problems of a company which are contributed by the following:

Working Systems

Operating Costs

Facilities

Manpower

Uses statistics & control charts to tell Uses statistics & control charts to tell when to adjust processwhen to adjust process

Developed by Shewhart in 1920’sDeveloped by Shewhart in 1920’s

InvolvesInvolves Creating standards (upper & lower limits)Creating standards (upper & lower limits) Measuring sample output (e.g. mean wgt.)Measuring sample output (e.g. mean wgt.) Taking corrective action (if necessary)Taking corrective action (if necessary)

Statistical Process Control Statistical Process Control (SPC)(SPC)

Process Control ChartProcess Control Chart

Plot of Sample Data Over Time

0

20

40

60

80

1 5 9 13 17 21

Time

Sam

ple

Valu

e

SampleValueUCL

Average

LCL

National Awards of Different Countries:

Malcolm Baldrige National Quality Award (United States)

The Deming Prize (Japan)

Golden Peacock National Quality Award (India)

British Quality Award (UK)

Egyptian Quality Award

Turkish Standard Institution Award (Turkey)

French National Quality Award

Australian Quality Award

A list of Awards related to Quality

The Margaret Chase Smith Maine State Quality Award

Shingo Prize for Excellence in Manufacturing

The NASA Excellence Award/ George M. Low Award

The North Corolina Quality Leadership Award

Rajiv Gandhi Foundation Quality Award (India)

The Florida Sterling Award

California’ s Eureka Award

Siemens and Sun Win Philip Crosby Award for Quality

Connecticut Quality Improvement Award

The most prestigious Quality Awards in the World are

The Deming Prize

The Malcolm Baldrige National Quality Award and

The European Quality Award

Some of the Award Winners of Macolm Baldrige National Quality Award are:

1. Ames Rubber Corporation

2. AT&T

3. Eastman Chemical Company

4. Motorola Inc.

5. Zytec Corporation

6. Xerox Corporation- Business Products &Systems

7. The Ritz-Carlton Hotel Company

8. Marlow Industries

9. Cardillac Motor Car Company

10. IBM Rochester

11. Globe Metallurigical Inc.

Big Growth of the Service Sector

According to the survey by the Economic Times in 1992, The service sector is a the threshold of the tremendous growth . Service and knowledge workers are estimated to constitute 80% of the workforce with the manufacturing sector contributing to only the rest 20 percent.

According to a recent survey of the top ranking organisation in Europe , 89 percent of the respondents said that quality was the primary buying argument for the ultimate customer.

TQM is supported and adopted not only by the manufacturing industries but also by the banks, hospitals, educational institutions, hotels and community development projects.

Quality is a Journey, not a Destination