Total Quality Management

December 2023 Examination

Ans 1

Introduction
Total Quality Management (TQM) is a management technique where keeping the customer in
mind the process of continuous improvement in the organization is done. It is to ensure that
the customer expectations are met or exceeded. The philosophy of TQM is to get the right
things at the very first time and every time. The Aim of TQM is the error should be 1 per
million produced.

Discussion:
1. The important aspect of TQM I think should consist of below:
2. Customer-driven Quality
3. TQM Leadership from Top Management
4. Continuous Improvement
5. Fast Response
6. Action Based on facts.
7. Employee participation
8. A TQM culture.

Let us discuss these in detail.

1. Customer-driven Quality: In the implementation of TQM, the customer is on top priority
rather than the internal activities. The customer satisfaction is above all. In TQM the
company stays close to the customer and responds to the feedback of the customer. It is
not only to improve the product and services to keep customers happy and reduce the
complaints but also enhance it and give value to the customer. Here external as well as
internal customers should be kept in mind.

2. TQM Leadership from Top Management: TQM should be the heart and soul of the
company and it should flow from the top management to the last link of the company.
TQM fails if the management fails to live the TQM processes. Only the involvement of
employees will not fulfil the purpose of TQM. There should be performance-linked
indicators for the employees as well as the top management and the feedback should be
both ways.

3. Continuous Improvement: Kaizen- continuous improvement is the soul of the TQM.

Once it is identified that continuous improvement only can make customers happy. It
should be an ongoing process and continuous improvement in the product and the services
should be done to keep the customer engaged and happy.

4. Fast Response: TQM talks about resolving the queries of the customer on top priority. To
keep the customer retained it is important to respond rapidly to the customer issues.
Taking feedback from the customer and developing the product and services accordingly.
The development process should be simple. Simplicity can be attained through continuous
product development. Efficiencies can be attained by removing non-value-adding efforts.

5. Actions based on Facts: TQM talks about facts and analysis-based processes. It provides
the details about the flaws and standing and performance against the products of the
competitor. It is based on the data and talks about facts rather than sentiments. The flaws
are identified whether in the system or employee-based. After replacing these with
efficient replacement the error can be minimized, and high-quality products and services
may be developed.
6. Employee Participation:

TQM culture can be developed only if the workforce is well trained and has full interest in
participating in the TQM activities. To reinforce the values in the employee a reward and
recognition system to be developed to encourage the employee of doing the continuous
improvement. Also, there should be remunerations linked to customer happiness indices
for the employee.

7. A TQM Culture:

A TQM culture cannot be implemented without the involvement of management, they

have to make feel every employee that the customer's happiness is above all and we need
to strive hard for that. Everyone must participate in the process. Also, there should be a
match in saying and doing by the management.

Conclusion:
Hence by implementing the above aspects of TQM, I will be able to increase the satisfaction
level of the customer continuously and hence keeping the business profitable and benefiting
internal as well as external stakeholders.

Ans 2.

Introduction

Total Quality Management (TQM) may be defined as the management system for a
customer-focused organization that strives for the continual improvement of all employees. It
utilizes the data, effective ways of communication and strategies to integrate the quality
culture and activities and imbibe them in the organizations:

Below is the 8 major principle of total quality management which has to be kept in mind
while designing TQM systems for businesses.

1. Customer-focused

2. Total employee involvement

3. Process-centred

4. Integrated system

5. Strategic and systematic approach

6. Continual improvement

7. Fact-based decision making

8. Communications

Discussion:
My advice to eliminate the defects in the design phase or production would be to try to
eliminate them from the inception of the product and carefully check at each stage.
The steps will be followed as below:
1. Audit potential suppliers’ quality management systems
2. Set the right price for your quality level when negotiating with suppliers.
3. Establish a golden sample to set quality expectations.
4. Set your tolerances for quality defects in a quality manual.

1. Audit potential suppliers’ quality management systems: I would suggest auditing

the potential suppliers who comply with the certain certification standards set by the
government agencies such as ISO 9001-2015 certifications and do not rely on the
certifications only. Do a self-audit of the facility of the suppliers. During the audit
check whether their personnel are trained, what process they follow, process controls
and safety measures. Whether they are checking defects and labelling them as or
when required or not. Whether they are following the quality records and statistics
etc. Supplier audits can help to limit the risk of working with a bad supplier incapable
of living up to our standards. Also, the internal audit control process should be robust
to identify poor-quality suppliers. Also, the quality management should be superior.
Audit should not be limited to the selection of suppliers; it can be done at any stage.

2. Set the right price for your quality level when negotiating with suppliers: It’s
important to select superior raw materials for the superior products. So, negotiating
considerably low prices for raw materials may lead to bad quality of material, which
may lead to bad-performing finished goods.
Suppliers may accept a low rate for raw materials but at the cost of raw material
quality. They may use cheaper alternatives or may rush the process leading to higher
defects and low quality.
The rates could be kept low while maintaining the quality may be done by taking
quotes from multiple suppliers. The rates may be kept under control by comparing
price quotes from different vendors. Asking supplier itemised bills for all raw
materials for components, by material order forecast to take off-season advantage and
modifying the design.

3. Establish a golden sample to set quality expectations: It is important to check the

sample from the supplier to get to know the quality. If they can provide quality
samples, then only they can be trusted.
A golden sample helps to determine the quality and changes that can be made if any
are required before the final production. It is also can be used to check the quality of
parts and materials used, standards followed, functionality, and aesthetic aspects such
as packaging, label and appearance.
While reviewing a sample rigorous testing must be done. such as safety testing,
performance and durability, material composition, performance against the
competitor’s performance, packaging etc.

4. Set your tolerances for quality defects in a quality manual: A golden sample
should not be the standard. There should be a list of a quality checklist which needs to
be followed. They should have a quality manual which needs to be shared with the
suppliers and these need to be followed during the development of the sample. A
good manual includes relevant information about the process and the inspector which
carefully watches for defects in product specs, tolerances for defects allowed, on-site
testing and packaging quality.
 If regular checking by the internal quality team is not efficient then the services of
expert third-party companies may be taken which have stringent protocols like ANSI
ASQ Z1.4 to follow and it should be a neutral entity.

Conclusion:
Hence by implementing the above techniques, the defects can be removed at the beginning of
the designing or production phase. It will help to minimise the error and waste of time and
money after production to minimize the errors. So, keeping the errors at bay may help in
effective production and cost cuttings.

Ans 3a.

Introduction:

Control charts are widely used to find the stability of a process to find its nature such as
whether it is stable or unstable or it is predictable or non-predictable. It helps an organization
to find whether the process qualifies under control, or whether some control measures must
be taken for the control.

Calculation:

Sample 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

p .04 .02 .05 .03 .06 .04 .03 .07 .01 .02 .03 .02 .02 .08 .03

Assume that p is the population.

P is the average value of population (p) by taking the samples of observations. =

∑ of p
no of p
Control Limit: CL = P
Upper Control Limit: UCL = P +zσp
Lower Control Limit LCL = P - zσp

Where,
z = Standard normal variable (usually set as 3)
P= Sample proportion defective
n = Sample size
σp = Standard deviation of average proportion defective = P
√ (1−P)
n

Here,
n =100
P=
∑ of p = 0.55/15= 0.0367
no of p
σp =
√ (1−P)
P
n √
= 0.0367
(1−0.0367)
100
= 0.018794
Let us calculate the limits using the formulae Above,

UCL= P +zσp
= 0.0367+3* 0.018794
= 0.093049

LCL= P - zσp
= 0.0367-3* 0.018794
= (-0.01972)

Conclusion:

So that after the calculation we found the limits as below:

CL= 0.0367
UCL= 0.093049
LCL = (-0.01972)

Ans 3b.
Introduction:
Attributes may be defined as the characteristics which may not be measured by any scale. It’s
a kind of characteristic such as conforming or non-conforming, defective or non-defective,
good or bad.

Basically, there are two types of attributes:

1. Those characteristics where numerical measurements of the quality characteristics are not
possible.
Such as faded colour, scratches, missed parts, damages etc.

2. Those characteristics where numerical measurements are possible, and items may be
categorised as defective or non-defective based on testing.
Such as diameter of a piston can be measured using a Go-No-Go gauge.

The control charts may be classified into two groups:

Control charts for - a) Defectives, and b) Defects.

Control charts for defective may be classified into two types:

Control charts for defectives are mainly of two types as given below:
1. Fraction defective (p-chart), and
2. Number of defectives (np-chart).

Control charts for defects may also be divided into two parts:
1. Number of defects (c-chart), and
2. Number of defects per unit (u-chart).

Discussion:
Let us discuss the two types of control charts for attributes in detail as below:
1. P Chart: It’s a type of control chart which is used for the data which is counted. It is
used to monitor the non-conforming units in a sample. Here binomial theorem is used
for the calculation of the control limits.

The centre line is the average proportion of defective items in the population.
 2. C-Chart: It’s a type of chart used for count type data be it conforming or non-
conforming within a consistent unit size. Here Poisson’s distribution formula is used
for the calculation of the control limits.

Conclusion:
Hence the attributes control charts help us to analyse the data in a graphical form. It shows
how the business changes over time. There are 4 types of charts and depending on the
suitability these are used as per the characteristics of the sample.