TOTAL QUALITY

MANAGEMENT (ME-445)
NEED OF QUALITY

Quality is key to surviving tough competition. Consequently

business needs technically competent people who are well
versed in statistical quality control and improvement.
Evolution of Quality Control

The quality of good produced and services rendered has been

monitored, either directly or indirectly, since time immemorial.
However, using a quantitative base involving statistical principles to
control quality is modern concept.
Evolution of Quality Control

The ancient Egyptians demonstrated a commitment to quality in the

construction of their pyramids. The Greek set high standards in art and
crafts. The quality of Greek architecture of the fifth century B.C. was so
envied that it profoundly affected the subsequent architectural
constructions of Rome. Roman-built cities, churches, bridges, and roads
inspire us even today.
Evolution of Quality Control

During Middle Ages and up to the nineteenth century, the production

of goods and services was confined predominantly to single person or a
small group. This phase, comprising the time period upto 1900, has
been labeled by Feigenbaum the operator quality control period.
Evolution of Quality Control

Starting in the early twentieth century and continuing of about 1920, a

second phase evolved, called the foreman quality control period.

The period from 1920 to 1940 saw the saw the next phase in the
evolution of quality control. Feigenbaum calls this the inspection
quality control period. During this period the foundations of statistical
aspects of quality control were being developed.
Evolution of Quality Control

In 1924, Walter A.Shewhart of Bell Telephone Laboratories proposed the use of

statistical charts to control the variables of a product. These came to be known as
control charts (sometimes referred to as Shewhart control charts).

In the late 1920s H.F. Dodge and H.G. Roming also from Bell Telephone
Laboratories, pioneered work in the area of acceptance sampling plans. These
plans were to become substitutes for 100% inspection.
Evolution of Quality Control

The 1930s saw the application of acceptance sampling plans in industry, both
domestic and abroad. Walter shewhart continued his efforts to promote to industry
the fundamentals of statistical quality control.

Interest in the field of quality control began to gain acceptance in England at this
time. The British Standards Institution 600 dealt with applications of statistical
methods to industrial standardization and quality control.
Evolution of Quality Control

The next phase in the evolution process, called the statistical quality control phase
by Feignbaum, occurred between 1940 and 1960. Production requirements
escalated during Word War II. Since 100% inspection was often not feasible, the
principles of sampling plans gained acceptance.

The American Society for Quality Control (ASQC) was formed in 1946, subsequently
renamed the American Society for Quality (ASQ)
Evolution of Quality Control

Although suffering wide spread damage during World War II, Japan embraced the
philosophy of statistical quality control wholeheartedly. When W. Edwards-Deming
visited Japan and lectured on these new ideas in 1950, Japanese engineers and top
management became convinced of the importance of statistical quality control as a
means of gaining competitive edge in the world market.
Evolution of Quality Control

J.M. Juran, another pioneer in quality control, visited Japan in 1954 and further
impressed on them the strategic role that management plays in the achievement of
quality program. The Japanese were quick to realize the profound effects that these
principles would have on the future of business, and they made strong
commitment to a massive program of training and education.
Evolution of Quality Control

In 1958, the Department of Defense (DOD) developed the Quality Control and
Reliability Handbook H-107.

Revised in 1959, this book became the Quality Control and Reliability Handbook H-
108.

The next phase total quality control took place during the 1960s.

The advent of 1970s brought the total quality control organization wide phase.

As this notion continues in the 1980s, it was termed as the total quality system.
Evolution of Quality Control

In total quality system A quality system is the agreed on companywide and

plantwide operating work structure, documented in effective, integrated technical
and managerial procedures, for guiding the coordinated actions of the people, the
machines, and the information of the company and plant in the best and most
practical ways to assure customer quality satisfaction and economical costs of
quality.
Evolution of Quality Control

In Japan, the 1970s marked the expanded use of graphical tool known as cause and
effect diagram. This tool was introduced in 1943 by K.Ishikawa and is sometimes
called an Ishikawa diagram. It is also called a fishbone diagram because of its
resemblance to a fish skeleton.

Also in this decade, G. Taguchi of Japan introduced the concept of quality

improvement through statistically designed experiments.
Evolution of Quality Control

In the 1980s, U.S. advertising campaigns placed quality control in the lime light.
Consumers were bombarded with advertisements related to product quality, and
frequent comparisons were made with those of competitors.

As computer use exploded during the 1980s, an abundance of quality control

software programs came on the market. The notion of a total quality system
increased the emphasis on vendor quality control, product design assurance,
product and process quality audit, and related areas.
Thank You
 Total Quality Management
TQM is a structured system for satisfying the internal and
external customers and suppliers by integrating the business
environments, and continuous improvements and breakthrough
with the development, improvement and maintenance cycles
while changing the organizational culture.

TQM can also be defined as “The act, art or manner of handling,

controlling made up by the whole system to achieve degree of
excellence that a product or service provides for the whole.
 Principles of TQM
• The employees are not just the resources, they are for a purpose.

• A company hires the total man with the body, mind and intellect and not

just the hands.

• The problems are with the system and not with the people

• The variance analysis focuses on what, why and not who.

• The people will be able to improve the system and solve the problems.

• The aim is to utilize the full potential of all the employees.

• The total employees involvement is essential for the customer

satisfaction.
 Comparison of traditional management
approach with TQM approach

Traditional management approach TQM approach

• Productive focus
• Emphasis on output/profit
• Does not ensure Quality
• Emphasizes employee performance
• Post-factor inspection
• Functional compartmentalization
integration
• Suppliers and sub-contractors are
liability
• Work force an expense
• Short term benefits
• Quality focus
• Emphasis on customer’s approach
• Ensures Quality and Productivity
• Emphasizes management role.
• Defect Prevention
• Companywide function
• Suppliers and sub-contractors are
partners in business
• Work force the key asset
• Long range focus
Definitions of Quality
 Definition of Quality

Quality is a dynamic state associated with the product,

services, people, processes and environments that meets or
exceeds the expectations of the customer. Quality is defined
as the ratio of performance to expectations:
Quality (Q) = Performance (P) / Expectations (E)
If Q = 1, customer is satisfied
Q < 1, customer is not satisfied
Q > 1, customer is delighted
 Definition of Quality

According to W.Edward Deming quality can be defined only in

terms of an agent who is judging the quality. In the mind of a
production worker, he produces quality if he can take pride in
his work. Poor quality to him means loss in the business and
perhaps the job.

For a plant manager, quality means to get the numbers out

and meet the specifications.
 Definition of Quality

According to Joseph M. Juran, quality means those features of

products that meet customer needs and thereby provide
customer satisfaction. In this sense, the meaning of quality is
oriented toward income. The purpose of such a high quality is
to provide a greater customer satisfaction and a hope to
increase income.
 Definition of Quality

According to American Society for Quality Control (ASQC),

quality is the totality of features and characteristics of a
product or service that bears on its ability to satisfy implied or
stated needs.
Implied needs, called parameters, are a function of the
market and must be identified and defined-for example, data
transmission rate on the internet in terms of bytes per
second.
 Definition of Quality

The European Organization for Quality Control defines quality

as degree to which it meets the requirement of the customer.
Webster’s International Dictionary defines quality as:
• Peculiar or essential character, a distinct inherent feature,
property, virtue.
• Degree of excellence, degree of conformance to standard.
Inherent or intrinsic excellence of character type, superiority
in kind.
 Definition of Quality

The US Department of Defense (DOD) defines quality as doing

the right thing right the first time, always striving for
improvement, and always satisfying the customer.
Perry L. Johnson says quality encompasses both substance
and image. Quality encompasses every aspect of the firm and
is actually an emotional experience for the customers who
want to feel good about their purchases and feel that they
have got the best value for the product or service.
 Definition of Quality

Giorgio Merli relates quality and customers by saying. “In fact,

customer satisfaction is regarded as the only relevant
objective for ensuring stable and continuously increasing
business.

The General Services Administrator (GSA) defines quality as

meeting the customer’s needs the first time and every time.
 Definition of Quality

The General Services Administrator (GSA) defines quality as

meeting the customer's needs the first time and every time.
 Definition of Quality

Armand Feigenbaum defines quality as one that is determined

by a customer based on his or her actual experience with a
product or service, measured against his or her requirements-
stated or unstated, conscious or merely sensed, technically
operational or entirely subjective. Quality is always a moving
or variable target in a competitive market.
 Definition of Quality

Peter Senge defines quality as a transformation in the way we

think and work together in what we value and reward and in
the way we measure success. All of us collaborate to design
and operate a seamless value adding system that incorporates
QC, customer service, process improvement, supplier
relationships and good relations with the communities we
serve and in which we operate, all optimizing for a common
purpose.
 Definition of Quality

Boeing Company defines quality as one that provides our

customers with products and services that consistently meet
their needs and expectations.
 Quality Characteristics
1. Structural Characteristics
2. Sensory Characteristics
3. Time oriented Characteristics
4. Ethical Characteristics
5. Functional Characteristics
6. Non-Functional Characteristics
 Dimensions of Quality
1. Performance
2. Aesthetics
3. Special Features
4. Conformance
5. Safety
6. Reliability
7. Durability
8. Perceived Quality
9. Service after sales
 Total Quality Management
TQM is a structured system for satisfying the internal and
external customers and suppliers by integrating the business
environments, and continuous improvements and breakthrough
with the development, improvement and maintenance cycles
while changing the organizational culture.

TQM can also be defined as “The act, art or manner of handling,

controlling made up by the whole system to achieve degree of
excellence that a product or service provides for the whole.
 Deming's Philosophy
1. Create and publish to all employees a statement of the aims
and purposes of the company or other organization. The
management must demonstrate constantly their
commitment to this statement.
2. Learn the new philosophy, top management and everybody.
3. Understand the purpose of inspection, for improvement of
processes and reduction of cost.
4. End the practice of awarding business on the basis of price
tag alone.
5. Improve constantly and forever the system of production and
service
6. Institute training
7. Teach and institute leadership
8. Drive out fear, Create trust. Create a climate for innovation.
 Deming's Philosophy
9. Optimize towards the aims and purposes of the company
the efforts of teams, groups, staff areas.
10. Eliminate exhortations for the workforce.
11. (a) Eliminate numerical quotas for production. Instead
learn and institute methods for improvement.
(b) Eliminate M.B.O. [management by objectives].
Instead, learn the capabilities of processes, and how to
improve them.
12. Remove barriers that rob people of pride of
workmanship.
13. Encourage education and self-improvement for everyone.
14. Take action to accomplish the transformation.
 Juran's Trilogy

• Quality improvement process

• Quality planning process
• Quality Control Process
Quality Costs
Prevention Costs

Prevention costs are incurred in planning, implementing, and

maintaining a quality system to prevent poor quality in products and
services.
Appraisal costs

Appraisal costs are those associated with measuring, evaluating, or

auditing products, components, purchased materials, or services to
determine their degree of conformance to the specified standards.
Internal Failure Costs

Internal Failure costs are incurred when products, components,

materials, and services fail to meet quality requirements prior to the
transfer of ownership to the customer.
External Failure Costs

External Failure costs are incurred when a product, does not perform
satisfactorily after ownership is transferred to the customer or services
offered are nonconforming.
Hidden Failure Costs

A significant segment of failure costs are “hidden”. These include

management and engineering time associated with cause identification
and determination of remedial actions associated with failures.
Measuring Quality Costs

1. Labor based index

2. Cost based index
3. Sales based index
4. Unit based index