Total Quality Management

TQM

Who pays your salary ?

My boss !
Accounts department !!

Naoroji Godrej !!

Customer !!!

It is the customer who pays our

salary
So
She is the person you have to
keep happy !

If it is the customer who pays your

salary,
If it the customer that you have to
keep happy,
we have to know what she wants

The customer wants a

good product at
good price at
the time she wants it

The Triad of Customer Expectation

Quality

Cost /
Price

Delivery

Profit = Quantity sold (Unit Price Unit Cost)

Profit = Q (P C)
Cost

Volume

Profit

Price

 Quality is the factor which can influence all

the three
Quantity
Cost
Price

Quality is not a pursuit of ego

Quality is an imperative for

Survival, Growth, Prosperity

Quality is not a pursuit of ego

Quality is an imperative for Survival,
Growth, Prosperity
Far more than that,
Quality is for better living

Quality is for better living

The view of an organisation

SUPPLIERS

Systems

Design

Purchase

Finance

Mfg

Support

HR

HR
Recruitment
Training
IR
Welfare
Safety

Logistics Distribution Marketing

Service

MANUFACTURING
PPC
Stores
Safety
Maintenance
Production
Quality control

 There was a time when businesses could

prosper with poor quality
Then came a time when you could be
thrown out due to poor quality
Now you cant even enter the business if
you have poor quality
And you may have good quality but if
some one else gives a better product, or
your product quality goes down, you could
be out of business

Watches Titan, Timex, HMT

Two wheelers
Cell phones
Cars

Quality

Common definitions of quality

The totality of features and characteristics of a
product or service that bear on its ability to
satisfy given needs
Quality is fitness for use or purpose J M Juran
Conformance to requirements
Quality = Performance / Expectations ( P / E )

Dimensions of Quality

Performance
Features
Conformance
Reliability
Durability
Serviceability
Responsiveness
Aesthetics
Reputation
Safety

The Quality Revolution

Broad timelines
Statistical methods
Walter Shewhart

Increased
emphasis on
process
improvement

Deming assists
McArthur

Japan emerges
as world quality
leader

TQC emerges in
US

Deming, Juran

Deming,
Ishikawa, Taguchi

Deming, Juran,
Feigenbaum

1940s

1960s - 70s

1960s

1920s

Zero defects
movement
In US

1950s

TQM emerges
Deming, Juran
Taguchi, Crossby

Crossby
1980s-90s
1960-70s

The Japanese Juggernaut

Steel
Ships
Motorbikes
Cars
Medical equipment
Transistors
Audio products
TVs
Office Automation products Fax, Copiers, Scanners
Musical instruments
Heavy machinery
Measuring instruments

 Walter A Shewart
Economic control of manufactured product

Dr. W E Deming
Out of crisis

Dr. Joseph M Juran

The Quality control Handbook
The Quality trilogy

Dr. Ishikawa
Cause Effect Diagram

Armand Feigenbaum
Philip Crossby
Quality is free
JUSE Union of Japanese Science and engineering

Taguchi

Design of experiments

Dr.W Edwards Deming

First arrived in Japan in 1947 to help
McArthur prepare for a Census.

Out of the crisis

Out of the Crisis

Management in some companies in Japan observed in 1948 and 1949 that

improvement in quality begets naturally and inevitably improvement of
productivity
Consumer is the most important part of the production line. Quality should
be aimed at the needs of the consumer, present and future.
Quality begins with the intent ,which is fixed by management. The intent
must be translated by engineers and others into plans specifications, tests,
products
Improvement of quality became at once with total commitment
Companywide all plants, management, engineers, production workers,
suppliers, everybody
Nationwide
Embracing every activity in production & Service

In the state of statistical control ,action initiated on appearance of a defect

will be ineffective and will cause more trouble. What is needed is
improvement of the process, by reduction of variation or by change of level,
or both.
Dr.Nelson
Director of statistical methods, Nashua corporation

The virtuous circle of Quality

Improve quality

Cost decreases
because of less
rework, fewer
mistakes, fewer
delays, snags,
better use of
machine time
and materials

Productivity
improves

Capture the
market with
better quality
and lower price

Stay in
business

Provide more
jobs

 Quality is not fine tuning your product at

the final stage of manufacturing
Quality is in-built into the product at every
stage from conceiving specification &
design stages to prototyping testing and
manufacturing stages

Thinking on variation
Any instabilities can help to point out specific
times or locations of local problems. Once these
local problems are removed, there is a process
that will continue until somebody changes it.
Changing the process is managements
responsibility
If I had to reduce my message to managers to
just few words, Id say it all had to do with
reducing variation He believed that quality and
productivity always increased as variability
decreased.

The Bell Curve

Demings 14 Points
1. Create constancy of purpose toward improvement of
product and service, with the aim to become competitive
and to stay in business, and to provide jobs
2. Adopt the new philosophy. We are in a new economic age.
Western management must awaken to the challenge,
must learn their responsibilities, and take on leadership for
change.
3. Cease dependence on inspection to achieve quality.
Eliminate the need for inspection on a mass basis by
building quality into the product in the first place
4. End the practice of awarding business on the basis of
price tag. Instead minimise total cost. Move towards a
single supplier for any one item, on a long term
relationship of loyalty and trust
5. Improve constantly and forever the system of production
and service, to improve quality and productivity, and thus
constantly decrease costs

Demings 14 Points Contd

6. Institute training on the job
7. Institute leadership. The aim of supervision should be to
help people and machines and gadgets to do a better job.
Supervision of management is in need of overhaul. As
well as supervision of production workers
8. Drive out fear, so that everyone may work effectively for
the company
9. Break down barriers between departments. People in
research, design, sales and production must work as a
team, to foresee problems of production and in use that
may be encountered with the product or service
10.Eliminate slogans, exhortations, and targets for the work
force asking for zero defects and new levels of
productivity. Such exhortations only create adversarial
relationships, as the bulk of the causes of low quality and
low productivity belong to the system and thus lie beyond
the power of work force.

Demings 14 Points Contd

11.a Eliminate work standards on the factory floor. Substitute
leadership
b Eliminate management by objective. Eliminate
management by numbers, numerical goals. Substitute
leadership.
12 a Remove barriers that rob the hourly worker of his right to
pride of workmanship. The responsibility of supervisors must
be changed from sheer numbers to quality
b Remove barriers that rob people in management and in
engineering of their right to pride of workmanship. This
means, inter alia, abolishment of the annual or merit rating
and of management by objective
13. Institute a vigorous program of education and self
improvement
14. Put everybody in the company to work to accomplish the
transformation. Transformation is everybodys job

Dr. Joseph M Juran

Ten steps

Create awareness of the need and the opportunity for quality improvement
Set goals for continuous improvement
Build an organisation achieve goals by establishing a quality council,
identifying problems, selecting a project, appointing teams and choosing
facilitators
Give everyone training
Carry out projects to solve problems
Report progress
Show recognition
Communicate results
Keep a record of successes
Incorporate annual improvements into the company's regular systems and
processes and thereby maintain momentum
Jurans Trilogy
Planning
Control
Improvement

Prof. Kaoru Ishikawa

1915 - 89

 Known as Father of Quality Circles

His Fishbone diagram which bears his name
(Ishikawa Diagram) was invented in 1943 as a
management problem solving tool
He developed the idea of bringing craftsmanship
to groups rather than to individuals
In his book, What is Total Quality Control?
Ishikawa said that seven basic tools were
indispensable to quality control.
His quality circles were first piloted at Nippon
Telegraph and Cable Co. in 1962. By 1978, there
were one million quality circles with 10 million
people, mostly in manufacturing.

Philip Crossby

Quotes - Crossby
Zero defects is the battle cry of defect
prevention. It means do the job right, the
first time, every time
It is much less expensive to prevent errors
than to rework, scrap or service them
Inside every organisation, every employee
has a customer
There is no substitute to the words Zero
defects they are absolutely clear
Quality is free. It is not a gift, but it is free

TQM

TQM
Total Involves everyone in the
organisation every function, every
activity
Quality - Focuses on improving the quality
of all the functions, systems and
processes.
Management Actions involved in
applying TQM principles and techniques to
all activities.

Fundamental principles

Philosophy
1.
2.
3.
4.
5.
6.
7.
8.

Customer focus
Continuous improvement
Management commitment
Involvement of all (Including suppliers)
Prevention better than cure
Internal customer
Management by facts
Results through processes

Customer focus
1. Customer expectations are a integral part of
the Quality Planning process.
2. In the TQM approach the entire organisation is
like a satellite revolving around the customer.
All the activities in the organisation have to be
tuned to the customer requirements and
expectations
3. Tools like QFD and Benchmarking, help us in
understanding the customer requirements right
at the beginning

Continuous improvement
1. Quality is not a end, it is a journey
2. Competitors are continuosly catching up
3. Our goal is zero defects
4. There are numerous aspects of quality
5. Consumer needs are changing

Management commitment

1. Total commitment from the top is a must

2. The Japanese revolution was triggered
and fuelled only by total commitment and
involvement from the management
3. It is a journey which requires unwavering
priority to Quality and only top
management can bring that.

Involvement of all (Including suppliers)

1.

Departure from Taylorism

2.

The person on the job knows better than anyone else,

where the shoe pinches

3.

Cross Functional Groups are best way to handle

quality improvement

4.

Tools Quality Circles, Brain storming

Prevention better than cure

Do it right, the first time, every time, time

after time

Errors / defects are costly (eg. Die

casting)

Wastage of material
Wastage of capacity
Wastage of effort
Lost opportunities

Internal customer

1. The organisation is like a chain of processes.

One process feeding into the other.
2. The next process is your customer
3. Output from one process has to be
acceptable for the next process which should
be treated as internal customer

Management by facts

Data has to be collected, organised

No inspection without recording
No records without analysis
No analysis without action

Actions have to guided and supported by

data

Results through processes

1. The belief of TQM is that processes
produce results
2. Any sustained / sustainable improvements
in the results will come only from changes in
the process
3. The process has to be in control
4. Special causes and Common causes have
to be detected and managed through use of
tools n techniques (eg. 7 QC Tools)

PROCESS
In control

Not in control

Desired
state

Not
acceptable

Not Good Partially

there
Need to
work

Not
acceptable

In control
RESULTS

Tools-n-Techniques

1.
2.
3.
4.
5.
6.
7.
8.

Customer focus
Continuous improvement
Management
commitment
Involvement of all
(Including suppliers)
Prevention better than
cure
Internal customer
Management by facts
Management by Process

1. PDCA
2. 7 QC Tools
3. Quality circles
4. SQC
5. 6 Sigma
6. Benchmarking
7. Design of Experiments
8. Quality Function
Deployment
9. Quality systems ISO
9000, MBQA
10.Cost of Quality (COQ)

PDCA

The PDCA cycle

Plan

Do

Act

Check

3
1

3
4

The helix. Continue the cycle, over and over, with never-ending
improvement of quality, at lower and lower cost

7 QC Tools

Flow charts
Check sheets
Pareto diagrams
Histograms
Cause and effect diagrams
Scatter diagrams
Control charts

Culture

Element

Before

After

Definition of quality

Product specification

Customer satisfaction

Emphasis

Fix problems

Prevent problems

Problems result from

Individuals mistakes

Management
practices / systems

Quality responsibility

QA department

Every one

Management climate

Fear and finger

pointing

Continuous
improvement,
innovation

Problem solving is
done by

Those in authority

Empowered
disciplined teams

The human angle

Pride in workmanship
Involvement
Contribution to the company goals
Job satisfaction

In summary

Effects of poor quality

Low customer satisfaction

Low productivity, sales, profit
High costs
Low morale of workforce
Delay in shipping

Costs of poor quality

Losses : Scrap, rework, extra cost, reinspection

Excess inventory
Overtime for schedule misses
Material review
Handling
Redesign costs
Tool & Fixture redesign
Replanning effort
Replacement expediting
Excess capacity

Benefits of quality

High customer satisfaction

Reliable products
Better efficiency
More productivity
More profit
Better morale
Low costs
Better quality of life for all

Quality makes business sense

Lower costs
Reduced rejection, rework

Better prices
Reliable products command higher price

Higher market share

Kill competition

Economics of Quality

Quality and price

Quality and costs
Quality and market share
Costs of Quality
Prevention
Appraisal
Failure
Internal
External

Costs of Quality
Prevention Costs associated with personnel engaged
in designing, implementing, and maintaining the quality
system, including auditing the system
Appraisal Costs associated with measuring measuring,
evaluating, or auditing products, components and
purchased materials to ensure conformance with quality
standards and performance requirements
Internal failure Costs associated with defective
products, components and materials that fail to meet
quality requirements and cause manufacturing losses
External failure Costs generated by defective products
being shipped to customers

Deming Prize

Deming Prize - Indian Companies

Sundaram Brake Linings Ltd. - 2001

TVS Motor Company - 2002
Brakes India Ltd. 2003
Mahindra & Mahindra Ltd. Farm equipment Sector 2003
Rane Brake Linings Ltd. 2003
Indo Gulf Fertilisers Ltd. 2004
Lucas TVS Ltd 2004
SRF Ltd. 2004
Krishna Maruti, Seat Division 2005
Rane Engine Valves Ltd. 2005
Rane TRW steering Systems Ltd 2005
Rane (Madras) Ltd. 2007
Tata Steel Ltd - 2008

Lets capture the Top of Mind

Thanks
Wish you all the best.