GE8077 –Total Quality Management

Text Book:
• 1. Dale H.Besterfiled, Carol B.Michna,Glen H. Besterfield,Mary
B.Sacre,Hemant Urdhwareshe and
• Rashmi Urdhwareshe, “Total Quality Management”, Pearson
Education Asia, Revised Third Edition, Indian Reprint, Sixth
Impression, 2013.
Reference Book:
• 1. James R. Evans and William M. Lindsay, "The Management and
Control of Quality", 8th Edition, First Indian Edition, Cengage
Learning, 2012.
• 2. Janakiraman. B and Gopal .R.K., "Total Quality Management -
Text and Cases", Prentice Hall (India) Pvt. Ltd., 2006.
 Unit-1:Introduction
Introduction – TQM 1880s
Control
Need for quality
Evolution of quality Technology

Definitions of quality
Management
Dimensions of product and service quality
21st Century
Basic concepts of TQM - TQM Framework
Contributions of Deming, Juran and Crosby
Barriers to TQM
Customer focus - orientation, satisfaction, complaints, retention.
TQM: Its a (MINDSET )philosophy that regards the competitive thrust
for improvements in all aspects of an industry / organization -----
Improvement of quality of performance in a)product b)process
c)design d) service of an organization that exceeds the prime objective,
So called, CUSTOMER SATISFACTION

Quality ensures
1. Confidence –Growth and Unique Competitive Edge
2. Sustainability
3. Functional Reliability
4. Consistency
5. International / National Brand Equity
6. Market Capitalization
7. Benchmarking Status
8. Goodwill and Reputation
9. Global Recognition -MNC
 Need and Evolution of QUALITY -TQM

Industrial Revolution -1880s to 1930s -USA –Steel Industries –Till

1980s and subsequently taken over by JAPAN
World war II -1939-1945 (Think about JAPAN !!) –TOYOTA
Industrialization – a great impetus after 1945 (Germany)
Prime Sectors : Defence / Automotive / Aerospace / Space
Since 1990s – Medical and other Industries

1980s –TQC (conceptualized jointly by USA and JAPAN)

SQC –TQC-TQM-TPM(1990s)
TQM is treated as a ROBUST methodology that ensures quality right from design

to services of a product (inception to end customer and, after sales market)

 Why TQ-Management?
TOYOTA Motor Corporation –Japan - Toyota Production Systems-(TPS) and
TS16949 automotive standard

BIG -3 : FORD / GM / Chrysler (ISO Standards)

European Automotive Companies-Volkswagen, BMW Group, Daimler

EADS –European Air Defence Consortium

AIRBUS –Netherland (European Consortium)

BOEING -USA
Management Factors:
Safety
Cost Reduction
Efficiency
Service Quality
Morale
 What is Quality?

Quality is defined as follows;

a) P / E = Performance of a product / Expectations of customers

a) Workmanship of the product / service and its performance

a) Quality is the degree to which an object or entity

(process/product/service) satisfies a specific set of requirements or
characteristics or metrics and measured for consistency assuring
confidence among different stakeholders ( end customer/ intermediate
customer /country/environment)
 Transition of the Quality Concepts
1950s Fitness to the Standard (Post World war 2)

1960s Fitness to use (Functional / Reliability concepts)

1970s Fitness to the cost (Cost Management)

1980s Fitness to the requirements (customer satisfaction)

1990s Fitness to the latent requirement (customer delight / ecstasy)

2000s Fitness to the needs of all stakeholders (even environment

(ISO-14000 Standards for environment protection)

2010s Modular / Integrated Technology / Multi-functional / Use and throw

products / cycle economy –reuse and recycle / environmentally safe

TQM Evolved during 1980s

 TQM -Total Quality Management

PDCA Cycle: PLAN DO CHECK ACT

Reference: HB for TQM and QCC-Volume-1 by a team of the Development Bank of Japan (DBJ) and Japan Economic Research Institute (JERI), under contract with the
Japan Program of the InterAmerican Development Bank (IDB).
Reference: HB for TQM and QCC-Volume-1 by a team of the Development Bank of Japan (DBJ) and Japan Economic Research Institute (JERI), under contract with the
Japan Program of the InterAmerican Development Bank (IDB).
 3 Principles of TQM

Reference: HB for TQM and QCC-Volume-1 by a team of the Development Bank of Japan (DBJ) and Japan Economic Research Institute (JERI), under contract with the
Japan Program of the InterAmerican Development Bank (IDB).
 TQM in Global Product Manufacturing TQM in Service Industries:
Industries

FORD Singapore Airlines

Chrysler Major Banks
Toyota Hospitals
Fuji XEROX Hotels and Hospitality Sectors
Philips
Panasonic
Nissan
TVS Motors

TQM Definition:
TQM is a set of systematic activities carried out by the entire organization to effectively and
efficiently achieve company objectives so as to provide products and services with a level of
quality that satisfies customers, at the appropriate time and price.” (TQM committee 2002)

Objective:
Survival and Prosperity
Strategy:
Create – Sustain – Improve - Assess
 The Role of Management / Managers in TQM
As was emphasized by Mr. Jack Welch, former president of General Electric,
a company famous for good quality management, managers should lead
People rather than manage people.
Managers are desired to lead in the following areas:
1. Performance (Functional Reliability)
2. Expertise (Technology & Cost effective Product Development/Manufacturing)
3. Ownerships (Responsibility)
4. Challenge and Visibility (Transparent –Ensure Stakeholders Trust )
5. Mentoring Supporting and Role Model (Morale / Motivation)
6. Global Experience and Cultural Breadth (Outreach and Transformation)

Transforming into a global competitive organization

Reference: HB for TQM and QCC-Volume-1 by a team of the Development Bank of Japan (DBJ) and Japan Economic Research Institute (JERI), under contract with the
Japan Program of the InterAmerican Development Bank (IDB).
 TQM Implementation

Reference: HB for TQM and QCC-Volume-1 by a team of the Development Bank of Japan (DBJ) and Japan Economic Research Institute (JERI), under contract with the
Japan Program of the InterAmerican Development Bank (IDB).
 TQM Framework (Ref: Dale Besterfield)

Ref: Total Quality Management by Dale Besterfield

 TQM Barriers / Hurdles
1. Lack of Management Commitment
2. Inability to Change Organizational Culture (Misunderstanding)
3. Improper Planning and Communication
4. Lack and Continuous Training and Education
5. Incompatible Organizational Structure and Leadership Capability
6. Isolated Individuals and Departments
7. Lack of Access to Data and Results
8. Ineffective Measurement Techniques
9. Inadequate Attention to Internal and External Customers
10. Failure to continually Improve
11. Inadequate use of Empowerment and
12. Lack of Teamwork
 Benefits of TQM

Overall Benefits
a) Improved Quality
b) Employee Participation
c) Teamwork
d) Customer Satisfaction
e) Employee Satisfaction
f) Stakeholders Satisfaction
g) Productivity
h) Profitability
i) Market Share

Financial Benefits
a) Growth in Sales
b) Growth in Operating Income
c) Growth in Total Assets
 Approaches of defining Quality
1. Product based (performance , features and durability)
2. User based (aesthetics and perceived quality)
3. Manufacturing based (conformance and reliability)
4. Value based (worth proposition)
Quality Costs : Quality costs are the cost associated with poor quality of
product or service. CTQ-Cost to (Maintain) Quality
Elements of CTQ:
Appraisal Cost (Testing / Certification/Functional departments appraisal cost)
Prevention Cost (Operational deficiencies / mistake proofing/kaizen)
Internal Failure Cost (rejection/rework)
External Failure Cost (service failures / penalty/warranty claims/lost sales)
Analysis of CTQ: (Metrics / Performance Indices)
Trend and
Pareto Analysis
 Dimensions of Quality (Ref: Dale Besterfield)
Dimension Interpretation
Performance Primary product characteristics
Features Secondary Characteristics
Conformance Meeting specifications / standards
Reliability Consistency of performance over time
Durability Useful life, includes repair and service
Service Ease of repair and service level satisfaction
Response Human to human interface
Aesthetics Sensory characteristics, feel

Note:
These are the generalized dimensions of quality, which can be extended based on the
application or area of implementation
 Dimensions of PRODUCT QUALITY
Dimensions of Product Quality
1. Performance
2. Features
3. Reliability (MTTF and MTBF)
4. Conformance (to Standards)
5. Durability (Technical and Economical from repair point of view)
6. Serviceability
7. Aesthetics
8. Perceived Quality (Reputation)
9. Price
10. Environment
 Dimensions of SERVICE QUALITY
1. Tangibles

2. Credibility

3. Responsiveness

4. Empathy

5. Assurance
Customer Satisfaction
6. Reliability

7. Access Customer Loyalty

8. Communication
Profitability
9. Financial Support

10.Employee Competitiveness
Reference: http://dx.doi.org/10.3390/su11041113
 Quality Guru’s
W. Edwards Deming, PhD, was a protégé of Shewhart. In 1950, he taught statistical
Process control (SPC) and the importance of quality to the leading CEOs of Japanese
industry.

Phillip B. Crosby authored his first book, Quality is Free, in 1979, which was translated
Into 15 languages. It sold 1.5 million copies and changed the way management looked
at quality. He argued that “doing it right the first time” is less expensive than the costs
of detecting and correcting nonconformities.

Joseph M. Juran, PhD worked at Western Electric from 1924 to 1941. There he was
exposed to the concepts of Shewhart. Juran traveled to Japan in 1954 to teach quality
management
Others:
Walter A. Shewhart (Control Charts and Control Limits, PDSA cycle)
Ronald Fisher (DOE and ANOVA)
Armand Feigenbaum (TQC)
Ishikawa (Cause and Effect Diagram)
Genichi Taguchi (DOE, Signal to Noise Ratios)-Studied in Indian Statistical Institute
Edward Deming’s Contributions
1. Deming’s 14 Principles
2. Deming Cycle / PDCA
3. Seven Deadly Diseases of Management
4. System of Profound Knowledge (SPOK)
Seven Deadly Diseases of Management
1. Lack of Constancy of Purpose
2. Emphasis on Short- term Profits
3. Evaluation of Performance / Merit Rating / Annual Review
4. Mobility of Management (Employee Retention Policies in work)
5. Management by using Visible Figures
6. Excessive cost of Liability
7. Crisis Management
System of Profound Knowledge (SPOK)
1. Knowledge of a System
2. Knowledge of a Variation
3. Theory of Knowledge
4. Knowledge of Psychology
1. Create and Publish the Aims and Purposes of the Organization
2. Learn and Adopt the new philosophy.
3. Understand the Purpose of Inspection
4. Stop Awarding the Business based on Price Alone
5. Improve Constantly and Forever the System
6. Institute Training
Deming’s 14 Principles:
7.Teach and Institute Leadership
8.Drive out Fear, Create Trust and Create a Climate for Innovation
9.Optimize the Efforts of Teams, Groups and Staff Areas
10. Eliminate Exhortations for the Workforce
11.Eliminate Numerical Quotas for the Workforce and MBO
12. Remove Barriers that Rob the Pride of the Workforce
13.Encourage Education and Self Improvement for Everyone
14.Take Action to Accomplish the Transformation
Deming’s Cycle / PLAN-DO-CHECK-ACT : PDCA Cycle
JOSEPH.M.JURAN Contributions
1. Internal Customer (First Satisfy your Internal Customer)
2. Cost of Quality (Cost of Poor Quality)
3. Quality Trilogy (Quality : Planning-Control and Improvement)
4. Juran’s 10 Steps for Quality Management
5. The Breakthrough Concept (Continual Improvement)
Improve-Rise –Stabilize –Improve-Rise -Stabilize
 Juran’s 10 Steps for Quality Management

1. Build Awareness of Opportunity to Improve

2. Set goals for Improvement
3. Organize to Reach Goals
4. Provide Training
5. Carryout Projects to Solve Problems
6. Report Progress
7. Give Recognition
8. Communicate Results
9. Keep Score
10.Maintain Momentum
PHILIP CROSBY’S CONTRIBUTION
1. Four Absolutes of Quality
2. 14 Steps to Quality Management
3. Crosby’s Quality Vaccine
Four Absolutes of Quality
1. Quality Conformance to Requirements
2. Quality Prevention
3. Zero Defects
4. Cost to Quality (Critical to Quality-CTQ)

Crosby Quality Vaccine (Crosby’s Triangle)

Integrity and Policies

Communication Systems and Operations

 PHILIP CROSBY’S 14 Steps for Quality Management
1. Management Commitment 8. Train Supervisors
2. Quality Improvement Teams 9. Zero Defects Day
3. Measure Processes 10.Establish Improvement Goals
4. Cost of Quality 11.Remove Fear
5. Quality Awareness 12.Recognise
6. Correct Problems 13.Quality Concepts
7. Monitor Progress 14.Repeat the Cycle
CUSTOMER CENTRIC Approach
1. Orientation (Awareness)
2. Focus (Customer Centric Approach)
3. Satisfaction (Meeting his / her requirements)
4. Complaints (Service / after sales marketing)
5. Retention (Retaining loyal customers)

But, we are following process centric approach ,a standard TS-16949

(TS-Technical Specification) is widely followed in automotive industries.
In this approach, the process is designed with ;
in-built quality / sustainability / eco-friendly---------
 Who is your CUSTOMER ?

ASQ (American Society for Quality) : End-user perception ranking

1. Performance
2. Features
3. Service
4. Warranty
5. Price
6. Reputation (Brand)
 Unit-1:Introduction
Introduction – TQM 1880s
Control
Need for quality
Evolution of quality Technology

Definitions of quality
Management
Dimensions of product and service quality
21st Century
Basic concepts of TQM - TQM Framework
Contributions of Deming, Juran and Crosby
Barriers to TQM
Customer focus - orientation, satisfaction, complaints, retention.