MS 494 TQM Spring 2023 Lectures

Total Quality Management
MS 494 – Service Course

Spring 2023
GIKI School of Management Sciences,

Hassaan Tariq
Hassaan Tariq - MS 494 - GIKI - Fall 2023 1
Assessment
• Final 40%
• Mid Term 30%
• Project 20% (Quality Audit)
• Quizzes 10%

Course Contents and Books
See Course outline Document

What is Quality
• To understand total quality, we must first understand quality . Customers
that are businesses will define quality very clearly using specifications,
standards, and other measures. This makes the point that quality can be
defined and measured.
• Quality is defined as ‘performance to the standard expected by the

customer’ Or
• ‘meeting the customer’s needs the first time and every time’ or
• ‘providing our customers with products and services that consistently
meet their needs and expectations’ or
• ‘doing the right thing right the first time, always striving for
improvement, and always satisfying the customer’
What is Quality?
• Quality is a dynamic state associated with products, services, people,

processes, and environments that meets or exceeds expectations and
helps produce superior value.

Total Quality Management - TQM
• Total quality consists of the continual improvement of people,
processes, products (including services), and environments.
• With total quality anything and everything that affects quality is a
target for continual improvement.
• When the total quality concept is effectively applied, the end results
can include organizational excellence, superior value, and global
competitiveness.

Principles of TQM

History of Quality Management -
Milestones

Milestones

Milestones

Important Terms in Quality
• • Quality improvement can be distinguished from quality control in that
quality improvement refers to purposeful change of a process to improve the
reliability of achieving an outcome.
• • Quality control is the ongoing effort to maintain the integrity of a process to
maintain the reliability of achieving an outcome.
• • Quality assurance is the planned or systematic action necessary to provide
enough confidence that a product or service will satisfy the given
requirements of quality.
• i.e. QA is focusing on preventing defect while QC is focusing on identifying the

defect
QA vs QC
• Quality control is product-oriented and focuses on defect identification. It deals
with adherence to requirements. It refers to quality-related activities associated
with the creation of project deliverables and are performed after the product is
developed. Quality control is used to verify pf deliverables are of acceptable
quality and that they are complete and correct. Examples of quality control
activities include inspection, deliverable peer reviews, and testing process.
• Quality assurance is process-oriented and focuses on defect prevention. It is
generic and does not concern the specific requirements of the product being
developed. It refers to the process used to create the deliverables, and can be
performed by a manager, client, or even a third-party reviewer. Quality assurance
activities are determined before production work begins and these activities are
performed while the product is being developed. Examples of quality assurance
include process checklists, project audits and methodology, and standards
development. Hassaan Tariq - MS 494 - GIKI - Fall 2023 13
QA vs QC

QA vs QC

Quality, Productivity and Profit

Types of Quality
• 1. Quality of design  Quality of design is the quality which the
producer or supplier is intending to offer to the customer.
•
• 2. Quality of conformance  Quality of conformance is the level of
the quality of product actually produced and delivered through the
production or service process of the organization as per the
specifications or design. When the quality of a product entirely
conforms to the specification (design), the quality of conformance is
deemed excellent.
• 3. Quality of performance  Quality of performance can be

assessed through measurements of physical products, statistical
sampling of the output of processes, or through surveys of purchasers
of goods or services. Hassaan Tariq - MS 494 - GIKI - Fall 2023 17
Quality and Profit

Levels of Quality

8 Dimensions of Product Quality by Garwin

Dimensions of Quality of Service - SERVQUAL

Costs of Quality

Costs of Quality
• Cost of Quality = Cost of Conformance + Cost of Non-conformance
• Prevention costs are incurred to prevent or avoid quality problems. These costs are associated with
the design, implementation, and maintenance of the quality management system.
• Appraisal costs are associated with measuring and monitoring activities related to quality. These
costs are associated with the suppliers’ and customers’ evaluation of purchased materials, processes,
products, and services to ensure that they conform to specifications.
• Internal failure costs are incurred to remedy defects discovered before the product or service is
delivered to the customer. These costs occur when the results of work fail to reach design quality
standards and are detected before they are transferred to the customer.
• External failure costs are incurred to remedy defects discovered by customers. These costs occur
when products or services that fail to reach design quality standards are not detected until after
transfer to the customer Hassaan Tariq - MS 494 - GIKI - Fall 2023 23
Costs of Quality

Hidden Costs of Poor Quality

Optimum Cost of Quality

Quality Cost Indices
• Cost Ratio = Total Quality Cost/Cost of Operation
• Sales Ratio = Total Quality Cost/Net Sales
• Labour Ratio = Total Quality Cost/Direct Labour Costs
• Unit Ratio = Total Quality Cost/Units Produced

Practice Question
• Reed
Engineering Ltd
• Compare all the
3 Models. Find
• 1. Total Cost of
Quality
• 2. Labor , Sales
and Unit Ratio
• 3. Analyze the
Results and pick
the Best Product
Practice Question
• ABC Company reported the following costs for a one-month period.
• Find?
• a. How much was spent on external failure costs?
• b. How much was spent on internal failure costs?
• c. How much was spent on non-conformance costs?
• d. How much was spent on appraisal costs?
• e. How much was spent on preventive costs?
• f. What were the total quality costs of ABC Company for the month?
Practice Question
• Identify the following types of Cost, in terms of Preventive, Appraisal,
Internal Failure and External Failure Cost
a) Scrap  IFC
b) Re-Work  IFC
c) Defective Product  IFC
d) Machine Downtime  IFC
e) Product Design PC
f) Simulation for Designs  PC
g) Documentation for Quality AC
h) Quality Control  AC
i) Staff Training  PC
j) Tolerance Analysis before Design release  PC
k) Computer Aided Designs  PCHassaan Tariq - MS 494 - GIKI - Fall 2023 30
Practice Question
• Identify the following types of Cost, in terms of Preventive, Appraisal,
Internal Failure and External Failure Cost
a) Performance Testing by the Customer  AC
b) Calibration of the Gauges  AC
c) Inspection of Parts and Finished Goods  AC
d) Material Selection for more reliable Product  PC
e) Premium Logistics Costs to meet Sudden Demand  IFC
f) Complaints Handling  EFC
g) Product Recalls  EFC
h) Penalty  EFC
i) Insurance Claims  EFC
j) Voltage Fluctuations and Penalties  EFC
Toyota Production System
• https://www.youtube.com/watch?v=P-bDlYWuptM

Quality Guru’s
Chapter 1

Walter Shewhart
• 1930s – USA
• Control Charts & PDCA

Joseph Juran
• 1940s – Time of World War 2

• Pareto Principle

Juran’s Quality Trilogy

Juran’s Formula for Quality
• 1. Build an awareness regarding the need and offer an opportunity for
improvement
• 2. Set goals for improvements
• 3. Organize paths to reach the goals (establish a quality council, identify
problems, select projects, appoint teams, designate facilitators, etc.)
• 4. Provide training
• 5. Carry out projects to solve problems
• 6. Report progress
• 7. Give recognition
• 8. Communicate results
• 9. Keep score
• 10. Maintain momentum by making annual improvements part of the
regular systems and processes of the company
Kaoru Ishikawa
• 1940s – Japan  Country Culture
• Fish Bone Diagram / Cause & Effect Diagram / Root Cause Analysis
• 7 Tools of Quality

W. Edwards Deming
• 1950s - Post World War -USA and Japan
• Deming’s 14 Points
1. Create constancy of purpose for improvement of product and service
2. Adopt the new philosophy
3. Cease dependence on mass inspection
4. End the practice of awarding business on price tag alone
5. Constantly and forever improve the system of production and service.
6. Institute modern methods of training on the job
7. Institute modern methods of supervision
8. Drive out fear
9. Break down barriers between staff areas
10. Eliminate numerical goals for the work force
11. Eliminate work standards and numerical quotas
12. Remove barriers that hinder the hourly worker
13. Institute a vigorous program of education and training
14. Create a situation in top management that will push every day on the above
points Hassaan Tariq - MS 494 - GIKI - Fall 2023 39
5 Deadly Diseases by Deming
• 1. Lack of constancy of purpose to plan product and service that will
have a market and keep the company in business, and provide jobs
• 2. Emphasis on short-term profits: short-term thinking (just the
opposite from constancy of purpose to stay in business), fed by fear
of unfriendly takeover
• 3. Evaluation of performance, merit rating, or annual review – You
reward Results not Process Improvement
• 4. Mobility of management; job hopping
• 5. Management by use only of visible figures, with little or no
consideration of figures that are unknown or unknowable

Armand Feigenbaum
• Founder of TQM
• Quality leadership: This is evident when the management
emphasizes on sound planning rather than reacting to failures. The
management must maintain a constant focus and lead the quality
effort.
• Modern quality technology: The traditional quality development
processes cannot resolve 80 to 90 per cent of quality problems. This
task requires the integration of office engineers as well as the shop-
floor workers who continually evaluate and implement new
techniques to satisfy customers in the future.
• Organizational commitment: Continuous training and motivation of
the entire workforce as well as an integration of quality in business
planning stage indicates the importance of quality and provides the
means for including it in allHassaan
respects of the organization’s activities 41
Tariq - MS 494 - GIKI - Fall 2023
Quality Circles and Kaizen
Shiego Shingo
• 1960s
• Poke Yoke (Error Proofing)
• SMED (Single Minute Exchange of
Die)
• Formation of JIT Manufacturing
• More focused towards Mass

Production , but with Statistical
tools and Do-It-Right-the First
Time.
7 Types of Wastes - JIT
• Just-in-time (JIT) manufacturing, also known as just-in-time
production or the Toyota production system (TPS), is a methodology
aimed primarily at reducing flow times within production as well as
response times from suppliers and to customers.
• Waste from overproduction

• Excess transportation
• Excess inventory
• Waiting time
• Processing waste
• Wasted motion
• Waste from production defects
Theory of
Constraints

Genichi Taguchi
• 1970s – Customer Satisfaction
• Quality Loss Function
• Loss of Quality is an Exponential Feature
• Robust Design Focus Less Effected by Noise

Philip Crosby
• 1980s – Increased Customer

Satisfaction
• Zero Defects (Continuous
Improvement)
• Quality is Free (Quality Cost
concept was developed by
Armand Feigenbaum)

Crosby’s 4 Absolutes of Quality
• The definition: Quality is conformance to requirements, not
goodness.
• The system: Prevention, not appraisal.
• The performance standard: Zero defects.
• The measurement: The price of non-conformance to requirements,
not quality indices.

Crosby’s 14 Steps
• 1.Management commitment: To clarify the management’s stand on quality.
• 2. Quality improvement team: To run the quality improvement programme.
• 3. Quality measurement: To display current and potential non-conformance
problems in the manner that permits objective evaluation and corrective action.
• 4. Cost of quality: To define the ingredients of the cost of quality, and explain its
use as a management tool.
• 5. Quality awareness: To provide a method of raising personal concern among
the personnel in the company towards the conformance of the product and
service, and the reputation of the company on the issue of quality.
• 6. Corrective action: To provide a systematic method of resolving the problems
identified through actions taken previously.
• 7. Zero defects planning: To examine the various activities that must be
conducted in preparation for formally launching the zero defects programme.

Crosby’s 14 Steps
• 8. Supervisor training: To define the type of training that supervisors need in order
to actively carry out their roles with regard to the quality improvement
programme.
• 9. Zero defects day: To create an event that will let all employees realise, through
a personal experience, that there has been a change.
• 10. Goal setting: To turn pledges and commitments into action by encouraging
individuals to establish improvement goals for themselves and their groups.
• 11. Error cause removal: To give individual employees a method of communicating
to the management, the situations that make it difficult for employees to meet the
pledge to improve.
• 12. Recognition: To appreciate those who participate.
• 13. Quality councils: To bring together professionals in the domain of quality for
planned communication on a regular basis with the workforce and management
alike.
• 14. Do it over again: To emphasize that the quality improvement programme
never ends. Hassaan Tariq - MS 494 - GIKI - Fall 2023 50
Kano Model
• 1980s Kano Model

Leadership
Chapter 2

TQM Kitemarks/Awards
Chapter 3

TQM 3 Top Awards
• Japan’s Deming Prize
• USA’s Malcolm Baldrige National Quality

Award (MBNQA)
• The European Quality Award (EQA)

Deming’s Prize
• The Deming Prize is a global quality award that recognizes both

individuals and organization for their contributions to the field of Total
Quality Management (TQM) and businesses that have successfully
implemented TQM.

Categories of the Deming’s Prize

5 Effects of Deming’s Prize
• 1. New product development and launch will be
promoted
• 2. New technology can be obtained
• 3. Sales target will be achieved continuously
• 4. Become capable of following a policy and fulfilling
an objective
• 5. Organisation’s functionality will be enhanced
Deming’s Prize Checklist



Malcolm Bridge National Quality Award
• It’s a US based award for Companies Operating within US in
the following categories.
• MBNQA award was established by the U.S. Congress in 1987 to raise
awareness of quality management and recognize U.S. companies that
have implemented successful quality management systems.
• MBNQA awards can be given annually in six categories:
• Manufacturing
• Service Company
• Small Business
• Education
• Healthcare
• Non-profit Hassaan Tariq - MS 494 - GIKI - Fall 2023 62
MBNQA (7 Key Criteria’s)
1.Leadership: How upper management leads the organization, and how the
organization leads within the community.
2.Strategy: How the organization establishes and plans to implement strategic
directions.
3.Customers: How the organization builds and maintains strong, lasting
relationships with customers.
4.Measurement, analysis, and knowledge management: How the organization
uses data to support key processes and manage performance.
5.Workforce: How the organization empowers and involves its workforce.
6.Operations: How the organization designs, manages, and improves key
processes.
7.Results: How the organization performs in terms of customer satisfaction,
finances, human resources, supplier and partner performance, operations,
governance and social responsibility, and how the organization compares to its
competitors. Hassaan Tariq - MS 494 - GIKI - Fall 2023 64
• Leadership vs Authority???
• Vision and Values Helicopter View
• Communication
Leadership • Mission and Organization Performance
• Organizational Governance
• Leadership and Ethical Behaviour
• Societal Responsibility (CSR)

• Porters 5 Forces
• SWOT Analysis
Strategy • BCG Matrix
• Strategy Plan, Objectives and
Implementation

Porters 5 Forces
Decision Areas
1. Investments?
2. Potential ROI?
3. Business Model?
4. Achieving Competitiveness (Differ, Cost,
Response)???
5. Product Design?
6. Product Life Cycle?
7. Product Quality?
8. Material Usage?
9. Product Cost?
10. Pricing?
11. Sales and Promotions?
12. Supplier Relationships??(Deep, Broad, Niche)???
13. Long Term Contracts?
14. Information & Knowledge sharing?
15. Branding?
16. Labelling?
17. Colour Choices?
18. Operations ? In-House/Outsourced/Buy/Bulk67Buy?
Hassaan Tariq - MS 494 - GIKI - Fall 2023
19. Demand and Trends??
BCG
Matrix

Customer Satisfaction?
Voice of the Customer? (QFD)
Customer Engagement?
Customer
Customer Support?
Customer Relationship?
Benchmarks!!!! Below , Average or Above

Average

Performance Measurement? KPIs??
Performance Review?
Measurement
, Analysis and Performance Improvement?
Knowledge
Management Data and Info?
Organizational Learning? Tacit Knowledge, Learning,

Roots engraved!

Workforce
ENVIRONMENT? WORKFORCE WORKFORCE

ENGAGEMENT? DEVELOPMENT?

Operations
Capacity and
Product and Process Process
Demand
Design? Improvement?
Management?
Health and Safety &

Supply Chain ? Innovation? Hazard
Identification? FMEA

• Annual Results?
• Product and Process Results?
• Customer Satisfaction Results?
• Supplier, CSR , Governance Results?
Results (Metrics)
• Financial Performance?
• Sustainability Performance?

MBNQA – Model for Business Excellence

Application Area of MBNQA Business Excellence
Tata Business Excellence Model

European Quality Award

Tools of Quality
Chapter 4

7 Traditional Tools of Quality
• Cause-and-effect diagram (also called Ishikawa or fishbone diagrams):
Identifies many possible causes for an effect or problem and sorts ideas into
useful categories.
• Check sheet: A structured, prepared form for collecting and analyzing data; a
generic tool that can be adapted for a wide variety of purposes.
• Control chart: Graph used to study how a process changes over time.
Comparing current data to historical control limits leads to conclusions about
whether the process variation is consistent (in control) or is unpredictable (out
of control, affected by special causes of variation).
• Histogram: The most commonly used graph for showing frequency
distributions, or how often each different value in a set of data occurs.
• Pareto chart: A bar graph that shows which factors are more significant.
• Scatter diagram: Graphs pairs of numerical data, one variable on each axis, to
look for a relationship.
• Stratification: A technique that separates data gathered from a variety of
sources so that patterns can be seen (some lists replace stratification with
flowchart or run chart).
Fish bone Diagram
• Also known as RCA (Root Cause Analysis)
• Used to find the root cause to any problem
• A Group activity which requires Brainstorming session with Cross-
Functional teams
• Key Categories to Look for!
• Methods
• Machines (equipment)
• People (manpower)
• Materials
• Measurement
• Environment
• Use 5 Whys Thinking to get to conclusions!!!

Fish Bone Diagram

Check Sheets • Used to Collect Data from Production process
• Used to Analyse patterns & Frequency of
Defects

Control chart
• The control chart is a graph used to study how a process
changes over time. Data are plotted in time order. A control
chart always has a central line for the average, an upper line for
the upper control limit, and a lower line for the lower control
limit. These lines are determined from historical data.
• Using a Control Chart!

• Controlling an On-Going Process
• Predicting expected range of outcomes from a Process
• To determine weather a process is stable
• Analyzing patterns of Variation

Control Chart

Histogram
• A histogram is the most commonly used graph to show

frequency distributions.
• To see if a process meets customer Requirements.
• Analysing what output from a suppliers process looks like.
• To analyse what process changes have occurred over time
• To compare and contrast between two various outputs!
• Histogram needs at-least 50 consecutive data points!

Histogram

Types of Distribution in Histogram
e.g. Purity of any particular item ,
Cannot be more than 100% , so Right
Skewed
e.g. Double shifts, with different

Distributions!
e.g. Combination of multiple

shifts, or various Plants!

Pareto chart
• Focused approach
• To analyse broad causes of defects
• 20/80 Rule

Scatter Plot
• To analyse the trends
• Independent (x-axis) and Dependent Variable (y-axis)
• To determine the relationship between two variables

Stratification
• Stratification is defined as the act of sorting data, people, and
objects into distinct groups or layers. It is a technique used in
combination with other data analysis tools.
• Data can be stratified in the following area’s.
• Equipment
• Shifts
• Departments
• Materials
• Suppliers
• Day of the week
• Time of day
• Products

Stratification

7 New Tools of Quality / Management
• Affinity diagram: Organizes a large number of ideas into their natural relationships.
• Interrelationship diagram: Shows cause-and-effect relationships and helps analyze the
natural links between different aspects of a complex situation.
• Tree diagram: Breaks down broad categories into finer and finer levels of detail, helping to
move step-by-step thinking from generalities to specifics.
• Matrix diagram: Shows the relationship between two, three, or four groups of information and
can give information about the relationship, such as its strength, the roles played by various
individuals, or measurements.
• Matrix data analysis: A complex mathematical technique for analyzing matrices, often
replaced by the similar prioritization matrix. A prioritization matrix is an L-shaped matrix that
uses pairwise comparisons of a list of options to a set of criteria in order to choose the best
option(s).
• Arrow diagram: Shows the required order of tasks in a project or process, the best schedule
for the entire project, and potential scheduling and resource problems and their solutions.
• Process decision program chart: Systematically identifies what might go wrong in a plan
under development.
Affinity Diagrams
• The aim to make suitable relationship of various ideas!
• When you have multiple ideas and not sure where to link or relate
any particular idea!
• When you have large issues!
• When a group consensus is necessary!

Affinity Diagram

Affinity Diagram Example

Inter-Relationship Diagram
• To analyse complex issues

and their relationship with
other intermediaries.
• Key Question!
• What is the influence of
this idea on any other
particular idea!
• Identify the Root Cause
to any problem!

Tree Diagram
• Developing actions to carry out a solution
• When probing for Root Cause problem
• When an issue is known, and needs specific details
• For a goal, action plan, or work breakdown structure, ask: "What tasks
must be done to accomplish this?" or "How can this be accomplished?"
• For root-cause analysis, ask: "What causes this?" or "Why does this
happen?"
• For a Gozinto chart, ask: "What are the components?" ("Gozinto"
literally comes from the phrase, "What goes into it?")

Tree Diagram
(Objectives – Activities - Tasks

Matrix diagram

Matrix Diagram Example

Matrix Example

Process Decision program Chart
• Is used before Implementation of a plan!

• Also , when a plan must be completed on Schedule!
• Identify the process through a tree- diagram , Objectives, Activities

and Tasks  Brainstorm for possible Failures  Brainstorm for
possible Counter-measures

PDPC

Matrix Analysis
• QFD is an Example, which will be practised in the class later on!

Arrow Diagram
• To identify a sequence of steps and their connectivity

• Mostly used for Project Scheduling
• Related Concept!!
• Project Management

Critical Path method
• Models the project by clarifying the relationships between activities
diagrammatically.

Network Diagram

Key Terms
• In all network diagrams where the activities have some parallel
relationships, there will be more than one sequence of activities
which will lead from the start to the end of the project.
These sequences of activities are called paths through the network.
• The path which has the longest sequence of activities is called the
critical path of the network. It is called the critical path because any
delay in any of the activities on this path will delay the whole project.
• The flexibility to change timings of activities in a project is a float. A

float is added in the project to compensate for the flexibility. Using
float we can calculate the Earliest event time and the latest event
time.
Network Diagram with Floats

PERT
(Program Evaluation and Review
Technique)

Use Critical Path Activity on Node
EST= Earliest Start Time
LST=Latest Start Time
EFT=Earliest Finish Time
LFT=Latest Finish Time
Forward Way for EST , Duration
and EFT
Backwards
LST=LFT-Duration
Float = LST-EST

Customer Involvement in TQM
Book Chapter 4 & 5

What is Customer’s Perception
• According to the TQM philosophy, the customer perception
of quality is continuous improvement.
• This concept emphasizes that there is no definite quality

level, because the customer’s needs and expectations
continuously change with time.
• We can say that if a company wants to satisfy its customers,

it needs to change or update according to customer
perception
Essential Characteristics to know Customer
• Who is the Customer?  Age, Gender, Ethnicity
• Customers Occupation? Product lines
• Why they want a product? i.e. What are their needs?
• When they want to purchase?
• Method/Channel of Purchase? Online, Traditional Store, Recharge,
Installments, Pay as you Go
• Budget?
• What delights the Customer?
• Customer Expectations?
• Customers perception about the Company?
• Customers perception about competitors?
Methods to get Customers Input
• Kano Model
• Interviews
• Survey
• Focus Groups
• Customer Feedback  Customer Retention

Service
Quality and
Gaps

Supplier and Employee Involvement
in TQM
Book Chapter 5

Employee Involvement
• Total Employee Involvement (TEI) pertains to teamwork in any
organization. TEI simply promotes a participative culture within the
organization, meaning 100% participation of all.

Methods for Employee Involvement in Quality
Process
• Quality Circles  Mainly use 7 Tools of Quality to produce Results
• Teams Building
• Employees Suggestion System
• Reward and Recognition System  Extrinsic Rewards (Pay Raise, Bonus,

Profit Sharing, Stock Option), Intrinsic Rewards( Feedback, Recognition, Trust)

Supplier Involvement
• Set Expectations
• Quality
• Quantity
• Information Sharing
• Timely Payment
• Knowledge enhancement
• Long-Term relationship vs Short-Term
• Delivery Times
• Volume Variations
• Sustainability
• Certifications Hassaan Tariq - MS 494 - GIKI - Fall 2023 120
Quality Function Deployment
(QFD)
Chapter 12

Introduction
• QFD can be applied to practically any manufacturing or
service industry.
• It has become a standard practice by most leading
organizations, who also require it of their suppliers
• Quality function deployment (QFD) is a planning tool used to
fulfill customer expectations.
• It is a disciplined approach to product design, engineering,
and production and provides in-depth evaluation of a
product.
• An organization that correctly implements QFD can improve
engineering knowledge, productivity, and quality and
reduce costs, product development time, and engineering
changes
Introduction
• Quality function deployment focuses on customer expectations or

requirements, often referred to as the voice of the customer.
• Quality function deployment is a team-based management tool in
which customer expectations are used to drive the product
development process.
• Conflicting characteristics or requirements are identified early in the
QFD process and can be resolved before production
• One of the most important tools in the QFD process is
communication..

Benefits of
QFD

What’s most Important in QFD
• Understand your Customer needs through
• Focus Groups
• Survey
• Complaints
• Consultants
• Standards
• Regulations

Key Questions
• What does the customer really want?
• What are the customer’s expectations?
• Are the customer’s expectations used to drive the design process?
• What can the design team do to achieve customer satisfaction?

Information
gathering from
Customer

House of Quality

How to Build the House of Quality

How to Build
the House of
Quality

Refinement
of Customer
Requirement
s

Refinement
of Technical
Descriptors
Should be aligned with Voice of the Customer i.e.

should impact every bit of Customers needs

Develop a
Relationship
between
How’s and
What’s

Relationship
and Key

Relate How’s with How’s

Customer’s
Competitive
Assessment

Technical Competitive Assessment

Develop Prioritized Customer
Requirements
• Add Weightage/Importance
• Scale 1 – 10
• Identify Target Value’s from Customer’s Competitive Assessment
• Identify Scale Up Factor  Ratio of Target Value/Product Rating
• Higher Values indicate more efforts are required
• Identify the Sales Point  The characteristics that will help in Selling
will have more value 1.5
• Calculate absolute Weightage = (Importance to Customer)*(Scale-up
Factor)*(Sales Point)

Develop Prioritized Customer Requirements

• Degree of Technical Difficulty can be from 1- 10
• Target Value is set in Comparison to Competitors
Develop prioritized • Add all Customer Needs*Technical Descriptors Scores
Technical Descriptors • Calculate Relative Weight by Multiplying Dot product of

Column with Absolute Weight of Customer Requirement and
add them up

Post Mid-Term

Six Sigma and Continuous Improvement

Productivity and Product/Services
Measure

Improving Productivity

Limitations to Productivity and Wastes

Lean Six Sigma

Lean Six Sigma Transformation Process

Business Canvas
• Strategic Lean Tool
• It is a visual and practical business tool to describe, test, implement,

and manage business models during their life cycle
• Business Model describes how Organization creates, develops and

captures value.

Steps in creating a Canvas
• 1. Introduction to the methodology
• 2. Current Canvas
• 3. Research environment around the current canvas:
• • Market trends
• • Technology trends
• • Needs Trends
• • Strengths and weaknesses
4. Generate future canvas prototypes
5. Feedback
6. Define Canvas future and following

Hoshin Kanri

Introduction

Key Stages of Hoshin Kanri

Establish a
Company
Philosphy

Establish
Objectives

Develop Strategies

Develop Tactics

• Team formation and Team building is an Essential Par of Lean Six
Sigma
• Teams are built when they ‘Share the pain’

Stages of
Team
Development

5S
5S

Sort
Straighten
Shine
5S in Action

Andon

Introduction

Benefits of Andons
• Improves Quality
• Reduces Costs
• Improves Response Time
• Improves Safety
• Improves Communication
• Provides a way to bring Immediate
attention to a problem
• Offers a simple mechanism to
communicate information
• Improves accountability
• Increases the speed and quality of
decision-making
Standard Work Instructions

Introduction
• Help to achieve better Quality and Productivity

• Consistency in finished Product
• Employee Safety

Elements of Standard Work Instructions

Lean Six Sigma – DMAIC - Explanation
• Define: Select an appropriate project and define the problem, especially in

terms of customer-critical demands.
• Measure: Assemble measurable data about process performance and develop
a quantitative problem statement.
• Analyze: Analyze the causes of the problem and verify suspected root cause(s).
• Improve: Identify actions to reduce defects and variation caused by root
cause(s) and implement selected actions, while evaluating the measurable
improvement (if not evident, return to step 1, Define).
• Control: Control the process to ensure continued, improved performance and
determine if improvements can be transferred elsewhere. Identify lessons
learned and next steps
Lean Six Sigma Approaches – DMAIC Process
• D - Define the goals of the improvement activity. The most important goals are obtained from customers.
At the top level the goals will be the strategic objectives of the organization, such as greater customer
loyalty, a higher return on investment (ROI) or increased market share, or greater employee satisfaction.
At the operation’s level, a goal might be to increase the throughput of a production department. At the
project level, goals might be to reduce the defect level and increase throughput for a particular process.
Obtain goals from direct communication with customers, shareholders, and employees.
• M - Measure the existing system. Establish valid and reliable metrics to help monitor progress toward
the goal(s) defined at the previous step. Begin by determining the current baseline. Use exploratory and
descriptive data analysis to help you understand the data.
• A - Analyze the system to identify ways to eliminate the gap between the current performance of the
system or process and the desired goal. Use statistical tools to guide the analysis.
• I - Improve the system. Be creative in finding new ways to do things better, cheaper, or faster. Use
project management and other planning and management tools to implement the new approach. Use
statistical methods to validate the improvement.
• C - Control the new system. Institutionalize the improved system by modifying compensation and
incentive systems, policies, procedures, MRP, budgets, operating instructions, and other management
systems. You may wish to utilize standardization such as ISO 9000 to assure that documentation is
correct. Use statistical tools to monitor stability of the new systems
Lean Six Sigma Approaches – DMADV Explanation
• Define: Define design goals that are consistent with customer demands.
• Measure: Identify and measure product characteristics that are critical to quality (CTQ).
• Analyze: Analyze to develop and design alternatives, create a high-level design, and
evaluate design capability to select the best design.
• Design: Complete design details, optimize the design, and plan for design verification.
• Verify: Verify the design, set up pilot runs, implement the production process, and hand
it over to the process owners.

Lean Six Sigma Approaches – DMADV Process
• Define the goals of the design activity. What is being designed? Why? Use QFD or the analytic
hierarchical process to assure that the goals are consistent with customer demands and
enterprise strategy.
•
• Measure Determine critical to stakeholder metrics. Translate customer requirements into
project goals.
• Analyze the options available for meeting the goals. Determine the performance of similar best-
in-class designs.
• Design the new product, service, or process. Use predictive models, simulation, prototypes,
pilot runs, etc., to validate the design concept’s effectiveness in meeting goals.
• Verify the design’s effectiveness in the real world.

Lean Processes and
their potential
Application

Define Phase and LSS Tools

Measure Phase and LSS Tools

Analyze Phase and LSS Tools

Improve/Implement/Design Phase and LSS Tools

Control/Verify Phase and LSS Tools

Waste Identification
• Waste appears throughout organizations and is often mixed with non-
waste. There are times and conditions within our organizations where
deciding what is waste versus non-waste can be somewhat of a
moving target.
Categorization for Waste related Activities

9 Types of Waste
• 1. Overproduction
• 2. Excess inventory
• 3. Defects
• 4. Extra processing
• 5. Waiting
• 6. Motion
• 7. Transportation
• 8. Underutilized people
• 9. Employee behavior
Lean vs Traditional Organization

Traditional vs Lean Organization

Traditional Lean

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Total Quality Management

MS 494 – Service Course

GIKI School of Management Sciences,

Hassaan Tariq - MS 494 - GIKI - Fall 2023 2

Hassaan Tariq - MS 494 - GIKI - Fall 2023 3

• Quality is defined as ‘performance to the standard expected by the

• Quality is a dynamic state associated with products, services, people,

Hassaan Tariq - MS 494 - GIKI - Fall 2023 5

Hassaan Tariq - MS 494 - GIKI - Fall 2023 6

Hassaan Tariq - MS 494 - GIKI - Fall 2023 7

Hassaan Tariq - MS 494 - GIKI - Fall 2023 9

Hassaan Tariq - MS 494 - GIKI - Fall 2023 10

Hassaan Tariq - MS 494 - GIKI - Fall 2023 11

• i.e. QA is focusing on preventing defect while QC is focusing on identifying the

Hassaan Tariq - MS 494 - GIKI - Fall 2023 14

Hassaan Tariq - MS 494 - GIKI - Fall 2023 15

Hassaan Tariq - MS 494 - GIKI - Fall 2023 16

• 3. Quality of performance  Quality of performance can be

Hassaan Tariq - MS 494 - GIKI - Fall 2023 18

Hassaan Tariq - MS 494 - GIKI - Fall 2023 19

Hassaan Tariq - MS 494 - GIKI - Fall 2023 20

Hassaan Tariq - MS 494 - GIKI - Fall 2023 21

Hassaan Tariq - MS 494 - GIKI - Fall 2023 22

Hassaan Tariq - MS 494 - GIKI - Fall 2023 24

Hassaan Tariq - MS 494 - GIKI - Fall 2023 25

Hassaan Tariq - MS 494 - GIKI - Fall 2023 26

• Cost Ratio = Total Quality Cost/Cost of Operation

• Sales Ratio = Total Quality Cost/Net Sales

• Labour Ratio = Total Quality Cost/Direct Labour Costs

• Unit Ratio = Total Quality Cost/Units Produced

Hassaan Tariq - MS 494 - GIKI - Fall 2023 32

Hassaan Tariq - MS 494 - GIKI - Fall 2023 33

Hassaan Tariq - MS 494 - GIKI - Fall 2023 34

• 1940s – Time of World War 2

Hassaan Tariq - MS 494 - GIKI - Fall 2023 35

Hassaan Tariq - MS 494 - GIKI - Fall 2023 36

Hassaan Tariq - MS 494 - GIKI - Fall 2023 38

Hassaan Tariq - MS 494 - GIKI - Fall 2023 40

• More focused towards Mass

• Waste from overproduction

Hassaan Tariq - MS 494 - GIKI - Fall 2023 45

Hassaan Tariq - MS 494 - GIKI - Fall 2023 46

• 1980s – Increased Customer

Hassaan Tariq - MS 494 - GIKI - Fall 2023 47

Hassaan Tariq - MS 494 - GIKI - Fall 2023 48

Hassaan Tariq - MS 494 - GIKI - Fall 2023 49

• 1980s Kano Model

Hassaan Tariq - MS 494 - GIKI - Fall 2023 51

Hassaan Tariq - MS 494 - GIKI - Fall 2023 52

Hassaan Tariq - MS 494 - GIKI - Fall 2023 54

• Japan’s Deming Prize

• USA’s Malcolm Baldrige National Quality

• The European Quality Award (EQA)

• The Deming Prize is a global quality award that recognizes both

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Hassaan Tariq - MS 494 - GIKI - Fall 2023 57

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