B.E/B.TECH DEGREE EXAMINATION - Nov/Dec 2010

Seventh Semester

Electrical and Electronics Engineering

MG1401-TOTAL QUALITY MANAGEMENT

Time: 3 hours Maximum: 100 marks

Answer ALL the questions.

PART A-(10X2=20 marks)

1. What are the seven faces of Quality?

Seven Tools:

1. Pareto Diagram 2. Process Flow Diagram 3. Cause and Effect diagram 4. Check sheets 5. Histogram 6. Scatter diagram v Control charts

2. Define Strategic planning.

It sets the long term direction of the organization in which it wants to proceed in future.Can be

defined "As the process of deciding on objectives of the organization, on changes onthis

objective, on the resource used to obtain these objectives and on the policies that are to

govern the acquisition use and disposition of these resources"

3. Why do the business people measure customer satisfaction?

The Customer is the King - Emphasized by Today's Buyers Market. TQM's Purpose ismeeting

or exceeding customer expectations, so that the customers are delighted. The

customersatisfactions must be the primary goal of any organization.

4. What are the strategic goals of performance measure?

PERFORMANCE APPRAISAL

It is a systematic and objective assessment or evaluation of performance and contribution of

individual

Needs

Identifying employees for salary revision, promotion, transfer, demotion, lay off

To determine training needs of employee

To take organizational inventory of people

To know personal strength and weakness of individuals

To validate the selection procedure

5. Mention the ways to reduce variability.

6. Mention the uses of Control chart.

A statistical tool to determine if a process is in control. Reasons for using Control Charts:

Improve productivity

Make defects visible Determine what process adjustments need to be made Determine if process is in orout of control

7. What are the goals of TPM?

To develop a conceptual understanding of the basic principles and

methods associated with TQM;

To develop an understanding of how these principles and methods have been put into effect in a variety of organizations;

To develop an understanding of the relationship between TQM principles and the theories and models studied in traditional management;

To do the right things, right the first time, every time.

8. List out various techniques adopted for JIT.

JIT is a Japanese technique, which means Just-intime technique. The primary goal of JIT is to achieve Zero inventory in an organization as well as throughout the entire supply chain.

Just-in-time is not a jargon term for a new concept. It represents a goal. That goal is the ultimate total elimination of inventory.

9.Define environmental policy.

10.What are the elements of a Quality Systems? The key processes of Software Quality

Management fall into the following three

categories: 1) Quality Planning 2) Quality Assurance 3) Quality Control The Software

PART B-(5X16=80 marks)

11.(a)What are the different definitions given for quality?Explain how it got evolved and

what are its pirme concerns.(16)

QUALITY DEFINITION

1. Predictable degree of uniformity and dependability at low cost and suited to the market

-Deming

2. Fitness for use-Juran

3. Conformance to requirements - Crosby

4. Minimum loss imparted by a product to society from the time the product is shipped -

Taguchi

5. A way of managing tile organization -Feigenbaum

6. Correcting and preventing loss, not living with loss - Hosffin .

7. The totality of characteristics of an entity that bear on its ability to satisfy stated and implied

needs ISO

Quality can be quantified as

Q = P/E Where Q=Quality P=Performance E=Expectations

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

Or

(b)(i)Discuss the management techniques for establishing quality costs.(8)

COST OF QUALITY

Quality costs are defined are those costs associated with the non-achievement of product or

service quality as defined by the requirements established by the organization and its contracts

Simply stated, quality cost is the cost of poor products or services.

CATEGORIES & ELEMENTS OF QUALITY COST

Costs are incurred in the accumulation and continued evaluation of customer and use quality

needs and perceptions affecting user satisfaction with the organizations product or

Costs are incurred to translate customer and user needs in to reliable quality standards and

requirements and to manage the quality of new product or service.

Costs are incurred to assure conformance requirements of supplier parts, materials or processes

and to minimize the impact of supplier non conformance on the quality of delivered products

or

Costs are incurred in assuring the capability and readiness of operations to meet quality

standards and requirements and to impart quality education to operating personnel.

Costs are incurred in the overall administration of the quality management function.

Purchasing appraisal costs can generally be considered the costs incurred for the inspection and

test of purchased supplies or service to determine acceptability to use.

2. Operations (Manufacturing or service) Appraisal Costs:

Operations appraisal costs can generally be considered the costs incurred for the test or audit

required to determine and assure the acceptability of product or service.

External appraisal costs are incurred for field set up or installation and check out for the

Costs are incurred for regular reviewing inspection and test data, prior to release of the product

Costs involved in quality audits to assure continued ability to provide acceptable support to

1. Product or Service Design Failure Costs (Internal):

Design failure costs are the unplanned costs that are incurred because of inherent design

Costs which are incurred due to the rejects of purchased items.

3. Operations (Product or Service) Failure Costs:

The costs associated with nonconforming product or service discovered during the operations

process. It is categorized in to three distinct areas: material review and corrective action, rework

1. Complaint Investigations of Customer or User Service:

It includes the total cost of investigating, resolving and responding to individual customer and

Costs incurred in evaluating, repairing and replacing goods.

Retrofit and recall costs are those costs required to modify or update products or field

servicefacilities to a new design change level, based on major redesign due to design

deficiencies.

Warranty costs include the total costs of claims paid to the customer or user after acceptance

tocover expenses, including repair costs, such as removing defective hardware from a system,

orcleaning costs, due to food or chemical service accident.

Liability costs are organization-paid costs due to liability claims, including the cost of product

or Penalty costs are those costs incurred because less than full product or service performance

is achieved as required by contracts with customers or by government rules and regulations.

This category involves costs incurred that customers are not satisfied with quality of delivered

product or service because the customers quality expectations were greater than the quality they Lost sales comprise the value of the contribution to profit that is lost due to sales reduction

because of quality problems.

(ii)Describe the various Quality Statements.Give examples.(8)

QUALITY STATEMENTS

VISION STATEMENT: It is a short declaration of what an organization aspires to be

tomorrow. It is an ideal state which may never be achieved.

Example: To continuously enrich knowledge base of practioners in mobility industry and institutions in the service of humanity SAE

MISSION STATEMENT: Describes the function of the organization. It provides the clear

statement of purpose for the employees, customers and suppliers.

Example: Facilitating world class technical education through high quality institutions, academic excellence and innovative research and development programmes, technology

forecasting and global manpower planning, promoting industry institute interaction,

inculcating entrepreneurship AICTE

QUALITY POLICY STATEMENT: It is a guide for everyone in the organization as to how

they provide products and services to the customer. Written by the CEO feedback from

workforce and approved by quality council.

Example: Xerox is a quality company. Quality is the basic business principle for Xerox.

Quality means providing our external and internal customers with innovative products and

service that fully satisfy their requirements. Quality is the job of every employee Xerox

12.(a)(i)Explain the key elements of partnering.(8)

(ii)Explain the conditions for selection and evaluation of suppliers.(8)

SUPPLIER PARTNERSHIP

A commitment to continuous quality improvement cannot be translated into reality without

treating supplier as partner

PRINCIPLES OF CUSTOMER / SUPPLIER RELATION

Both the customer and the supplier are fully responsible for the control quality

Both the customer and the supplier should be independent of each other and respect each

others independence The customer is responsible for providing the supplier with clear and sufficient requirements so that the supplier can know precisely what to produce

Both the customer and the supplier should enter into an non adversarial contract with respect

to quality, quality, price, delivery method and terms of payments

The supplier is responsible for providing the quality that will satisfy the customer and

submitting necessary data upon the customers request

Both the customer and the supplier should decide the methods to evaluate the qualityof the

product or service to the satisfaction of both parties

Both the customer and the supplier should establish in the contract the method by which they

can reach an amicable settlement of any disputes that may arise.

Both the customer and the supplier should continually exchange information, sometimes using

multifunctional teams, in order to improve the product or service quality

Both the customer and the supplier should perform business activities such as

procurement, production and inventory planning, clerical work and system so that anamicable

and satisfactory relationship is maintained

When dealing with business transactions both the customer and the supplier should always

have the best interest of the end user in mind

SUPPLIER PARTNERING

It is defined as a continuing relationship, between a buying firm and supplying firm,involving

a commitment over an extended time period, an exchange of information,

andacknowledgement of the risks end rewards of the relationship.

BENEFITS OF SUPPLIER PARTNERING

Improved Quality

Reduced cost

Increased Productivity

Increased efficiency

Increased market share

Increased opportunity for innovation

Continuous improvement of products/services. .

JAPANES REVIEW OF PARTNERING

The Japanese partnering concept is KELRESTU developing long term relationshipswith a few key suppliers rather than having short term relationship with many suppliers.

Key elements to Partnering

Long term Commitment

Trust

Shared vision - To satisfy the end users is the common goal of both supplier andcustomer.

SUPPLIER SOURCING

Sole sourcing - only one supplier for the entire organization. This may be forced. tohappen

because of patent, technical specification, raw material location, monopolisticsupplier

Multiple sourcing - For a single item having two or more supplier, resulting in bette r quality,

better service at lower cost

Single sourcing- use of one supplier to one item when several sources are available leading to

long-term partnering relationship.

BASIS OF SUPPLIER SELECTION

Cost, Quality, Delivery, Reliability, Management compatibility, Goal congruence and Strategic

direction of supplier firm.

STAGE IN SUPPLIER SELECTION & EVALUATION

Survey stage, enquiry stage, negotiation and selection stage, experience stage.

The supplier should understand and appreciate the management philosophy of the organization

The supplier should have a stable management system

The supplier should maintain high technical standards and have the capability of dealing with

future technological innovation

The supplier should provide those raw materials and parts required by the purchaser andthose

supplied meet the quality specifications

The supplier should have the capability to produce the amount of production needed

The supplier should not breach the corporate secrets

The supplier should be easily accessible in terms of transportation and communication

The supplier should be sincere in implementing the contract provisions

The supplier should have an effective quality system and improvement program such as ISO /

QS 9000

The supplier should have a track record of customer satisfaction and organization credibility

SUPPLIER RATING

Also referred as score card system, is used to obtain and overall rating of supplier performance

based on quality, price, performance and production capability

OBJECTIVES OF SUPPLIER RATING

Obtain an overall rating of supplier performance ensure completer communication with

suppliers - provide each supplier about the details of problems for corrective action and -

maintain and improve the partnering relationship between the customer and the supplier.

Or

(b)(i)Compare Deming and Juran approaches.(8)

DEMINGS 14 POINTS

1. Create constancy of purpose for improvement of products and service.

2. Adopt a new philosophy: we are in a new economic age.

3. Cease dependence upon inspection as a way to achieve quality.

4. End the practice of awarding business based on price tag.

5. Constantly improve the process of planning, production, and service- this system includes

people.

6. Institute training on the job.

7. Institute improved supervision (leadership)

8. Drive out fear.

9. Break down barriers between departments.

10. Eliminate slogans/targets asking for increased productivity without providing methods

11. Eliminate numerical quotas.

12. Remve barriers that stand between workers and their pride of workmanship.

13. Institute programs for education and retraining.

14. Put all emphasis in the company to work to accomplish the transformation.

JURAN TRILOGY

Dr. Joseph Moses Jurans major contribution to the world has been in the field of quality management.

Dr.Joseph Juran was also called as father of Quality. He was a professor and Quality consultant

and conceptualized the Pareto principle where many Industries depends on it. The American

society for quality have proposed to rename the Paretos principle as JuransPrinciple. Its universal application makes it one of the most useful concepts and tools of modern day

management.

Dr. Joseph Moses Juran has written many books on Quality. One of his book

namelyStandard reference work on Quality control is one of the reference handbook used by quality departments in most of the organizations.

This handbook on quality gives more useful information to improve the performance of the

organization by improving the quality of goods and services. One of his classic book namely

Managerial Breakthrough presents more general theory of quality management

The book Managerial Breakthrough is the first book to describe a step by step sequence for

breakthrough improvement. Today this process has evolved in to six sigma and it act as a basis

for quality initiatives world wide.

In 1979 Juran founded Juran Institute, an organization aimed at providing Research and

pragmatic solutions to enable organizations from any Industry to learn the tools and techniques

for managing Quality.

Juran describes Quality from the customer perspective as having two aspects.

Higher quality means greater number of features that meet customer needs.

The second aspect is that the product should be free from troubles.

The Juran Trilogy, published in 1986, was accepted world wide as the basis for quality

management.

The Juran Trilogy describes three basic components or processes required to manage quality

in the organization. They are

Quality Planning

Quality improvement

Quality Control

Quality Trilogy model was developed by Juran at Juran Institute. Quality Trilogy provides a

model of how an organization can improve from the bottom line by better understanding the

relationship between the processes that plan , control and improve quality.

(ii)Explain the importance of customer satisfaction.(8)

Customer satisfaction

The Customer is the King - Emphasized by Today's Buyers Market. TQM's Purpose is meeting

or exceeding customer expectations, so that the customers are delighted. The

customersatisfactions must be the primary goal of any organization.

CUSTOMER SATISFACTION MODEL

Tebouls Model of customer satisfaction as shown in figure

From the above diagram it is understood that the company should strive for increasing th e

intersection portion i.e. Customer Satisfaction.

THE CUSTOMERS ARE

The most important people in the business

Not dependent on the organization, but the organization depends on them.

Not an interruption to work but are the purpose of it.

Doing a favor when they seek business and not vice-versa.

A part of business, not outsiders and they are life blood of the business

People who come with their needs and jobs

Deserve the most courteous and attentive treatment.

TYPES OF CUSTOMERS

Internal Customer: The customer inside the company are called internal customers

External Customers: An external customer is the one who used the product or service or

whopurchase the products or service or who influences the sale of the product orservice.

CUSTOMER SUPPLY CHAIN

CUSTOMER COMPLAINTS (FEEDBACK)

Customer feedback must be continuously solicited and monitored to reduce the

dissatisfied customers as much as possible.

CUSTOMER FEEDBACK OR CUSTOMER COMPLAINT IS REQUIRED

To discover customer dissatisfaction

To identify customers needs

To discover relative priorities of quality

To compare performance with the competition

To determine opportunities, for improvement

TOOLS USED FOR COLLECTING CUSTOMER COMPLAINTS

Comment card - Low cost method, usually attached to warranty card

Questionnaire - Popular tool, costly and time consuming - by mail or telephone

preferably multiple choice questions or a point rating system (1 to 5) or (1 to 10)

Customer Focus groups - Meeting by a representative of the company with the group

of customers. Imprint analysis is an emerging technique to obtain intrinsic feelings using

customer meetings, word associations, discussion, relaxation techniques etc.

Phone - Toll free Telephone numbers

Customer visits - Visit customer's place of business.

Report cards - Usually, send to customer on a quarterly basis.

The internet and computer - It includes newsgroups, electronic bulletin board mailing

lists,Employee feedback.

Mass Customization - Capturing the voice of customers using data of what customer want

instead of what customer is thinking about buying and manufacturing exact what they want.

STEPS TO SOLVE CUSTOMER COMPLAINTS

Complaints can be collected from all sources (letters, phone -calls, meetings and verbinputs)

Develop procedures for complaint resolution, that include empowering front-linepersonnel.

Analyze complaints, but understand that complaints do not always fit into new

categories

Work to identify process and material variations and then eliminate the root cause.and strive to

resolve the concern.

Establish customer satisfaction measures and constantly monitor them.

solution, to all people in the organization. .

Provide a monthly complaint report to the quality council for their evaluation andneeded, the

assignment of process improvement teams.

Identify customer's expectations beforehand rather than afterward through complaint analysis.

CUSTOMER RETENTION

More powerful and effective than customer satisfaction

It is the process of retaining the existing customer

Customer care can be defined as every activity which occurs within the organization that

ensures that the customer is not only satisfied but also retained.

SIGNIFICANCE OF CUSTOMER RETENTION

60% of organizations future revenue will come from exiting customers

2% increase in customer retention has 10% decrease in operating cost.

96% of unhappy customers do not complain but 3 times likely to convey to other customers

about their bad experience.

91% of unhappy customers never purchase goods and services from you.

It costs 5 times more to attract the customer than retaining the existing customer.

Customer retention creates customer loyalty and moves customer satisfaction to a nextlevel

called customer delight.

EMPLOYEE INVOLVEMENT

It is the total involvement from every person at all levels in the organization

ASPECTS OF EMPLOYEE INVOLVEMENT

1. Employee motivation

When a survey response is received, a senior manager should contact the customer

Communicate complaint information, as well as the result of all investigation

2. Employee Empowerment

3. Teams and Team work

4. Recognition and Reward Schemes

5. Performance Appraisal

13.(a)Explain the different types of control charts available for problem

solving.Enumerate on the different patterns commonly noticed in control charts.(16)

CONTROL CHART: A statistical tool to determine if a process is in control.

CONTROL CHARTS FOR VARIABLES AND ATTRIBUTES VARIABLE CONTROL

CHARTS

1. Deal with items that can be measured. Example

1) Weight 2) Height 3) Speed 4) Volume

Types:

X chart: deals with a average value in a process R chart: takes into count the range of the

MA chart: take into count the moving average of a process 2.ATTRIBUTE CONTROL CHART

v Control charts that factor in the quality attributes of a process to determine if the process is

performing in or out of control.

Types:

P chart C Chart U Chart

P Chart: a chart of the percent defective in each sample set.

chart: a chart of the average number of defects in each sample set.

Reasons for using Control Charts: Improve productivity

Make defects visible

Determine what process adjustments need to be made Determine if process is in orout of control

Or

(b)With a specific application compare the affinity diagram and relationship diagram in

terms of getting highly creative solutions for managerial problems.(16)

Affinity diagram

An affinity diagram is a tool to collect a large amount of verbal expressions (ideas, opinions,

observations, etc) and organize them in group according to natural relationships between

individual items.

Affinity diagram is used:

To provide a visual representation of large amount of

ideas.

To determine logical priorities.

To extract the large amount of useful information from few or scattered

data or from unrelated ideas.

To understand and organize problems that are not clear.

To clear new concepts.

Relationship diagram

The relationship diagram is a tool for fining causes to a problem. The relationship diagram not

only clarifies the relationship between cause and effect but also between the various causes.

Use of relationship diagram

The purpose of the relationship diagram is generate a visual representation of the relations

between an effect and its causes as well as the inter-relationship between the different causes

of the problem.

Tree diagram

A tree diagram systematically breaks down a topic into its components elements, and shows

the logical and sequential links between these elements.

The tree diagram systematically outlines the complete spectrum of paths and tasks that must

be carried out to achieve a goal.

Use tree diagram

The purpose of the tree diagram is to explore the ways and means to achieve the

objective, develop a list of alternative means and to present them in visual

understandable from.

Matrix diagram

A matrix diagram is a tool that is used to systematically organize information that

must be compared on variety of characteristics in order to make a comparison,

selection or choice.

Use matrix diagram

The matrix diagram is used to show relations between individual items in two sets of factors.

Decision tree or process decision programmer chart (PDCA)

A decision tree or PDPC is a planning tool to outline every conceivable and likely occurrence

in any planning.

Use decision tree

The PDPC or decision tree is useful when one wants to plan all possible chains of events that

might occur during a project. This tool is particularly used in new

product development, building and equipment, and data processing programs.

This tool is widely used in decision making when the task is new, complex and

unique.

arrow diagram

An arrow diagram is a graphic description of the sequential steps that must be

completed before a project can be completed. Example: PERT and CPM charts.

use arrow diagram

The main purpose of the arrow diagram are:

i)to show the paths to complete for

the project.

ii)to find the shortest time possible for the project and

iii)to display

graphically simultaneous activities.

The arrow diagram is indispensable for long-term projects, such as the

construction of a plant or development of new products.

Matrix data analysis diagram

A matrix data analysis diagram is very much similar to a matrix diagram with a

difference that numerical data is used instead of symbols indicating the existence and strength

of relationship.

Use matrix data analysis diagram

The purpose of matrix data analysis diagram is to present numerical data about

two sets of factors in a matrix form and analyse it to get numerical output. This

tool is used in principle component analysis where only two characteristics can be studied at a

time.

14.(a)Describe the different benchmarking metrices that can be used in educational

institutions.(16)

Process benchmarking - the initiating firm focuses its observation and investigation of business

processes with a goal of identifying and observing the best practices from one or more

benchmark firms. Activity analysis will be required where the objective is to benchmark cost

and efficiency; increasingly applied to back-office processes where outsourcing may be a

consideration.

Financial benchmarking - performing a financial analysis and comparing

The results in an effort to assess your overall competitiveness.

Performance benchmarking - allows the initiator firm to assess theircompetitive

position by comparing products and services with those of target firms.

Product benchmarking - the process of designing new products or upgrades

To current ones. This process can sometimes involve reverse engineering which is taking apart

competitors products to find strengths and weaknesses.

Strategic benchmarking - involves observing how others compete. This type

isusually not industry specific meaning it is best to look at other industries.

Functional benchmarking - a company will focus its benchmarking on a

singlefunction in order to improve the operation of that particular function. Complex functions

such as Human Resources, Finance and Accounting and Information and Communication

Technology are unlikely to be directly comparable in cost and efficiency terms and mayneed

to be disaggregated into processes to make valid comparison.

Or

(b)Explain the different steps involved in Failure Mode Effect Analysis with an

example.(16)

Design FMEA is used in the design process by identifying known and

foreseeable failure modes and then ranking failures according to relative impact on the product.

Design FMEA reduces development time and cost of manufacturing process by eliminating

many potential failure modes prior to operation of the process.needed for reference.

FMEA number space is given on the top right corner of the document which is

ITEM space is used for component (or) process to be analysed.

Design Responsibility space is used for the team in-charge of the design or

process , (or) the name and the department of the person responsible for preparing the

document.provided to avoid confusion between similar components.

Model Number / Year of the component should be included in the space

Key date space is used for initial Due date of FMEA.

FMEA date original and FEMA date latest revision should be filled.

In the Core team space, the names of the responsible individuals and

departments having authority to perform tasks should be filled up.

Item / Function:

In this column, the name and code number of the item being analysed is recorded.

This function of the item should be entered.

If the item has more than one function, they should be listed and analysed separately.

The environment (temperature. pressure, humidity etc) in which the system operates should be completely given.

15.(a)List the different types of quality audits available in practice and explain when each

has to be carried out?

This chapter describes the types of audits that government and nongovernmental

auditorganizations conduct and those organizations arrange to have conducted, of government

organizations, programs, activities, functions, and funds. This description is not intended

tolimit or require the types of audits that may be conducted or arranged. In conducting these

types of audits, auditors should follow the applicable standards included and incorporated in

the chapters, which follow.

All audits begin with objectives, and those objectives determine the type of audit to be

conducted and the audit standards to be followed. The types of audits, as defined by their

objectives, are classified in these standards as financial audits or performance audits.

Audits may have a combination of financial and performance audit objectives or may have

objectives limited to only some aspects of one audit type. For example, auditors conduct audits

of government contracts and grants with private sector organizations, as well as government

and nonprofit organizations, that often include both financial and performance objectives.

These are commonly referred to as "contract audits" or "grant audits." Other examples of such

audits include audits of specific internal controls, compliance issues, and computer-based

systems. Auditors should follow the standards that are applicable to the individual objectives

of the audit.The internal audits were carried out by the Managing Director and the quality

system representative, who drew up the audit plan, the audit check-list and the formats for the

audit report and for the reports by the regional office experts on their particular fields. The

Managing Director and the quality system representative audited the local offices in respect of

the quality system and the departments of the regional office in every respect. The experts

audited the local offices in respect of their particular business areas. The objective of the

auditwas to verify that quality activities and related results comply with the definitions given

in operating procedures and work instructions, and to determine the effectiveness of the quality

system. The internal audit was announced several days before it took place, and all the required

records (see the check-list below) were delivered. The first audits focused on documents

control as a basis for the first stage in implementing the ISO norm. We then had to look closely

into the question of whether the operating procedures were in conformity with actual processes

and were appropriate. Nonconformities were noted and recorded, but it was astonishing that

the quality system worked so well despite the short duration of implementation. We made two

audits before the assessment to ensure that corrective action could be taken, and that approach

was effective in ensuring that AMS Salzburg was in good shape to face the assessment.

Or

(b)(i)Explain the requirements of Environmental Management Systems.(8)

(ii)Discuss the benefits of environmental management systems.(8)