Learning

Objectives
What is Quality?

Purpose of TQM

What is TQM

TQM Evolution

Major Contributors to TQM

TQM Principles

TQM Applications / Tools

Current Global Scenario

TQM
Total Made up of the whole

Quality Degree of excellence a

product or service
provides

Art of Planning,
Management Organizing,
Controlling etc.

Therefore, TQM is the art of managing

the whole to achieve excellence.
excellence
 BASIC PRINCIPLES OF TQM

Approach Management Led

Scope Company Wide

Scale Everyone is responsible for Quality

Philosophy Prevention not Detection

Standard Right First Time

Control Cost of Quality

Theme On going Improvement

What is Quality
FEIGENBAUM (1983) DEFINED QUALITY AS FOLLOWS
 Quality is total composite product (goods and services)
characteristics, through which the product in use will meet
the needs and expectations of the customers.
 Concept of quality must start with identification of customer
quality requirements and must end only when the finished
product is placed into the hands of the customer who remains
satisfied through various stages of relationship with the seller

American Society of Quality Control (ASQC) and

American National Standard Institute (ANSI) defined
 Quality is totality of features and characteristics of product
(goods and services) that bears on its ability to satisfy given
needs”
Business Purposes

● By materializing permanent, continuous

customer satisfaction, ensure long-term,
healthy profit for the business and
promote the growth
● The “purposes” include the satisfaction
of employees, convenience to the
societies, and improved profits to
business associates, shareholders and all
other parties related to the business.
Competitive Advantage
The ability of a firm to win consistently over the long
term in a competitive situation.
Competitive advantage is created through the
achievement of five qualities

 Superiority  Non-substitutability
 Inimitability  Appropriability
 Durability
Why TQM is Required
1 Production of perfect, defect-free products
2 Development of new products/new technologies
3 Reduction of production costs
4 Labor-saving via introduction of advanced production technologies

5 Consumption of less material and energy in production

6 Elevation of customer satisfaction (CS)
7 Prevention of product-liability (Warranties)
8 Improvement of financial structure
9 Environmental protection, pollution prevention
10 Tributes to mankind, elevation of employee satisfaction (ES )

Competitive Advantage
Approaches to define Quality
Transcendent Approach
 Quality is absolute and universally recognisable.
 It is common notion used by laymen
 There is a subjective judgement and is estimated by looking
at the product

Product Based Approach

 Attributes of a particular product in a specific category
 These attributes are accepted as bench of quality by the
industry
 Others in the same industry try to produce close to this
quality
Approaches to define Quality
User Based Approach
Defined as “Fitness for use”
Viewed from user’s perspective and is dependent on
how well does the product meet needs of the consumer.
Also known as Customer Oriented Approach

Production Based Approach

An outcome of engineering or operational excellence
and is measured in terms of quality of conformance
The producer has specifications and produces the
product as per the specifications
Approaches to define Quality
Value Based Approach
Quality is viewed in context of price
Quality is satisfactory, if it provides desired performance
at an acceptable price
Customer looks at the total value proposition and not
the price alone

Benefits
Value 
Pr ice
Quality

 Quality is conformance to requirements or

specifications (Crosby 1979)

 Quality is fitness for use (Juran 1988)

 Quality should be aimed at the needs of

the consumer, present and future (Deming,
1986)
David Garvin Attributes of
Quality
Performance
Product’s primary operating characteristics
Features
Augmented product – The “bells & whistles” of the
product
Reliability
Ability of the product to function at the specified level
of performance
Conformance
Degree to which characteristics of the product meet pre-
established standards
Attributes of Quality
Durability
Length of time a product can be used before it
deteriorates or becomes non functional
Serviceability
Speed, competence & courtesy of providing ASS
Aesthetics
Look, feel sound, taste, smell
Perceived Quality
Resulting from advertisement, image, brand name,
earlier use, hearsay
Evolution of Quality Management
TQM Evolution

Evolution

TQM
Quality
Assurance
Quality
Control
Foreman
Operator
1900 1918 1920 1940 1980
Evolution of Quality Management
Mass Inspection Quality Assurance
 Inspecting  Emphasis on prevention
 Salvaging  Proactive approach using
 Sorting SPC
 Grading  Advance quality planning
 Rectifying Total Quality Control
 Rejecting  All aspects of quality of
Quality Control inputs
 Testing equipments
 Quality manuals
 Control on processes
 Product testing using SQC
 Basic quality planning
Evolution of Quality Management
Company wide Quality Control
 Measured in all functions connected with production such as
 R&D
 Design
 Engineering
 Purchasing,
 Operations etc
Total Quality Management
 Measured in all aspects of business,
 Top management commitment
 Continuous improvement
 Involvement & participation of employees
Evolution of Quality Management
Gurus of TQM

Dr. W E Deming Dr. J M Juran Dr. Philip Crosby

Gurus of TQM

Dr. Genichi Taguchi Dr. Kaoru Ishikawa Dr. Masaaki Imai

 Gurus of TQM

Dr. Shigeo Shingo Dr. Yoshio Kondo Dr .Armand V. Feigenbaum

Dr. James Harrington
W E Deming
Reduction in process variability by extensive use of
statistics will lead to improvement in quality and
increase in productivity
Talked about New Climate (organisational culture)
Joy in work
Innovation
Co-operation
Win-Win approach
He proposed a 14 point TQM programme
Deming
Statistician by training
Contributions include
 14 points for Management
 The PDCA cycle (Shewhart cycle)
DEMING SAID…

“Reduced variation
is Quality.”
 Deming’s Chain Reaction

Improve Quality
Provide jobs and
more jobs
Stay in business
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
W E Deming – PDCA Cycle
 The Deming Cycle or PDCA Cycle

PLAN
Plan a change to the process. Predict
the effect this change will have and plan
how the effects will be measured
ACT DO

Adopt the change as a Implement the change on a

permanent modification small scale and measure the
effects
to the process, or
abandon it.
CHECK

Study the results to

learn what effect the
change had, if any.
 W. Edwards Deming’s 14 Points

1)
Create constancy of purpose towards improvement
of product and services.
2) Adopt the new philosophy. We can no longer live
with commonly accepted levels of delays,
mistakes, defective workmanship.
Cease dependence on mass inspection. Require,
3)
instead, statistical evidence that quality is built in
.
4) End the practice of awarding business on the basis
of price tag.
 W. Edwards Deming’s 14 Points

5)
Find problems. It is management’s job to work
continually on the system.
6) Institute modern methods of training on the job.
Institute modern methods of supervision of
7)
production workers. The responsibility of foremen
must be changed from numbers to quality.

8) Drive out fear that everyone may work effectively

for the company.
 W. Edwards Deming’s 14 Points

9)
Break down barriers between departments.
10) Eliminate numerical goals, posters and slogans for
the workforce asking for new levels of productivity
without providing methods.
Eliminate work standards that prescribe numerical
11)
quotas.

12) Remove barriers that stand between the hourly

worker and his right to pride of workmanship.
 W. Edwards Deming’s 14 Points

13)
Institute a vigorous programme of education and
retraining.
14) Create a structure in top management that will
push everyday on the above 13 points.
Deming’s System of Profound Knowledge

Appreciation for Knowledge

system about variation

Theory about Knowledge of

knowledge psychology
Seven Deadly Sins
Lack of vision and mission as regards quality &
process improvement
Emphasis on short term profit
Personal performance appraisal systems
Mobility of management
Running a company on visible figures alone
Customer satisfaction level
Employee morale
Relationship with your vendors
Confidence the market has in your company
Seven Deadly Sins
Excess non-productive expenditure
Excessive cost of warranty
Deming’s Prize
Establish in 1950 originally for Japanese companies for
major advances in quality improvement
Deming’s Prize is given under Japanese Union of
Scientists & Engineers
These days Deming’s Prize is awarded to non Japanese
companies and even individuals
2001 – Sundram Brake Linings, the world’s first
friction material company to win
2008 – Tata Steel is the first integrated steel plant in
Asia to win
J M Juran
Developed the idea of trilogy
Quality Planning
Quality Improvement
Quality Control
Conformance to specifications is necessary but not
sufficient requirement of a product.
Fitness for use by the consumer of the targeted market
segment is an essential requirement in addition to
conformance
Juran
Involvement of people within
Quality
 Placed emphasis on training process
supervision and operators
 Primary focus to reduce Cost of
Quality
 Juran suggests a 10 point plan
Quality

Fitness for Use

(Juran 1988)
 JURAN SAID…

“All quality
improvement
occurs on a project-
by-project basis and
in no other way.”
 Principle of iceberg

Iceberg over water surface

10% Visible to managers

Water surface

30% Visible to foremen

60% Visible to workers

Iceberg under water

Juran’s 10 Points
Build awareness of need and opportunities for
improvement
Set goals for improvement
Organise the overall improvement programme
Provide the training
solve problems through project methodology
Report progress
Give recognition
Communicate results
Keep score
Institutionalise the improvement process
J M Juran’s Trilogy
Philip Crosby
Do it right the first time
Zero Defects
Absolutes of QM
 Quality is defined as conformance to requirements, not as
'goodness' or 'elegance'
 The system for causing quality is prevention, not appraisal –
Quality is Free
 The performance standard must be Zero Defects, not "that's
close enough"
 The measurement of quality is the Price of Non-conformance,
not indices.
 Cost of quality is only the measure of operational
performance
Crosby
First to popularize Quality for top management
 Claimed that all Quality improvement pay for
themselves I.e. that Quality is Free
 Defines quality as conformance to requirements
 The only performance indicator is the cost of quality
 The only performance standard is zero defects
Crosby 14 points
Management commitment
Quality improvement team
Quality measurement
Evaluation of cost of quality
Quality awareness
Corrective action
Establish committee for zero defect planning
Supervisor training
Zero Defect Day
Goal Setting
Error cause removal
Recognition
Cost of Quality
Prevention Cost
Cost associated with time spend in planning the quality
system
Consists of the following
 Process control costs
 Information systems costs

 Training Costs

 General Management cost

Cost of Quality
Appraisal Costs
 Cost incurred on measurement & analysis of data in order to
detect & correct problems
 Consist of
 Cost of maintaining, testing & inspection
 Process control costs
Internal Failure Cost
 Incurred due to non-conformance
 Include
 Scrap and rework costs
 Cost of corrective action
 Downgrading costs
Cost of Quality
External Failure Cost
Occur when poor products reach customer
Include
 Costs of customer complaints and returns
 Product recall costs

 Warranty claims costs

 Product liability costs

Genichi Taguchi
His methodologies held ensure customer satisfaction

Taguchi’s Loss Function

Taguchi Method – Design of Experiments

Taguchi’s Loss Function
A quality product is a product that causes a minimal
loss (expressed in money!) to society during it's entire
life. The relation between this loss and the technical
characteristics is expressed by the loss function
Taguchi’s Loss Function
Kaoru Ishikawa
Simplified statistical techniques for QC
Cause and Effect diagrams (Ishikawa Diagrams or Fish
Bone Diagrams)
Company wide quality control
quality does not only mean the quality of product, but
also of after sales service, quality of management, the
company itself and the human life
Ishikawa

Developed several tools and

techniques for application
 Ishikawa cause and effect diagram
 Defined the seven basic tools of quality
management
Ishikawa Diagram
Ishikawa Diagram
Diagrams which show the causes of a certain event
Three sets of causes
6 M’s
Machine
Method
Maintenance
Man
Mother Nature
Ishikawa Diagram
8 Ps 4 Ss
Price Surroundings
Promotion Suppliers
Process Systems
Place/Plant Skills
Policies
Procedures
Product (or Service)
Masaaki Imai
Introduced the concept of Kaizen or continuous
improvement