ME-381

Total Quality Management

By-
Dr. Niharika Gupta
Assistant Professor,
Department of Mechanical Engineering,
NIT Hamirpur
Contact no. 9958114561
 Course Objectives
• To understand the concept of Quality in Manufacturing and Service Units
• To understand the implication of Quality in Business
• To understand how to implement Quality Programs in an Organization
• To have exposure to challenges in Quality Improvement Programs

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 Course Content
1. Introduction
2. Conceptualization of TQM
3. Organization structure in TQM
4. Tools and Systems for Quality Management
5. Quality Assurance
6. Implementation and Need of ISO 9000

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Book and References:
1. Total Quality Management by Dale H Bersterfilled, PHI Publication.
2. Total Quality Management by N.V.R Naidu, G. Rajendra, New Age international
Publication.
3. Total Quality Management by L. Sugandhi and Samuel Anand, PHI Publication.
4. Total Quality Management by R.S Naagarazan, New Age International
Publication.

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Learning Objectives
• Define the term quality.
• Explain why quality is important and the consequences of poor
quality.
• Identify the determinants of quality.
• Describe the costs associated with quality.
• Describe the quality awards.

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Introduction
What does the term “quality” mean?
Quality is the ability of a product or service to consistently meet or exceed customer
expectations.
OR
It may refer to the Quality of the process (i.e., men, material, machines) and even that
of management. Whereas the quality of manufactured product referred as or defined as
‘‘Quality of product as the degree in which it fulfills the requirement of the customer.
✓It is not absolute, but it judged or realized by comparing it with some standards’’.
✓It is usually determined by some characteristics namely design, size, material, chemical
composition, mechanical functioning workmanship, finish and other properties.
✓In the final analysis, the Quality standards for the products are established by the
customer.
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 Evolution of Quality Management
• 1924 - Statistical process control charts
• 1930 - Tables for acceptance sampling
• 1940’s - Statistical sampling techniques
• 1950’s - Quality assurance/TQC
• 1960’s - Zero defects
• 1970’s - Quality assurance in services

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 Quality Assurance vs. Strategic Approach
• Quality Assurance
• Emphasis on finding and correcting defects before reaching market
• Strategic Approach
• Proactive, focusing on preventing mistakes from occurring
• Greater emphasis on customer satisfaction

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 The Quality Gurus
• Walter A Shewhart-“Father of statistical quality control”
• W. Edwards Deming Contributor Known for
• Joseph M. Juran Deming 14 points; special & common causes of
variation
• Armand Feignbaum
Juran Quality is fitness for use; quality trilogy
• Philip B. Crosby
Feignbaum Quality is a total field
• Kaoru Ishikawa
Crosby Quality is free; zero defects
• Genichi Taguchi
Ishikawa Cause-and effect diagrams; quality
circles

Taguchi Taguchi loss function

Ohno and Continuous improvenment

Quality
Shingo

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 Dimensions of Quality
• Performance - main characteristics of the product/service
• Aesthetics - appearance, feel, smell, taste
• Special Features - extra characteristics
• Conformance - how well product/service conforms to customer’s
expectations
• Reliability - consistency of performance
• Durability - useful life of the product/service
• Perceived Quality - indirect evaluation of quality (e.g. reputation)
• Serviceability - service after sale

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 Examples of Quality Dimensions
Dimension (Product) (Service)
Automobile Auto Repair
1. Performance Everything works, fit & All work done, at agreed
finish price
Ride, handling, grade of Friendliness, courtesy,
materials used Competency, quickness
2. Aesthetics Interior design, soft touch Clean work/waiting area

3. Special features Gauge/control placement Location, call when ready

Cellular phone, CD Computer diagnostics
player

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 Examples of Quality Dimensions (Cont’d)
Dimension (Product) (Service)
Automobile Auto Repair
5. Reliability Infrequency of breakdowns Work done correctly,
ready when promised

6. Durability Useful life in miles, resistance Work holds up over

to rust & corrosion time

7. Perceived Top-rated car Award-winning service

quality department

8. Serviceability Handling of complaints and/or Handling of complaints

requests for information

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 Service Quality
• Convenience
• Reliability
• Responsiveness
• Time
• Assurance
• Courtesy
• Tangibles

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 Examples of Service Quality
Dimension Examples
1. Convenience Was the service center conveniently located?

2. Reliability Was the problem fixed?

3. Responsiveness Were customer service personnel willing and able to

answer questions?
4. Time How long did the customer wait?

5. Assurance Did the customer service personnel seem

knowledgeable about the repair?
6. Courtesy Were customer service personnel and the cashier
friendly and courteous?
7. Tangibles Were the facilities clean, personnel neat?

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Challenges with Service Quality
• Customer expectations often change
• Different customers have different expectations
• Each customer contact is a “moment of truth”
• Customer participation can affect perception of quality
• Fail-safing must be designed into the system

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 Determinants of Quality

Ease of
Design
use

Conforms
to design Service

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 Determinants of Quality (cont’d)
Quality of design
• Quality of design is a technical term.
• It can be regarded as a composite of 3 separate terms or steps in a common
progression of activities.
i. Identification of what constitutes fitness for use to the user (Quality of
market research).
ii. Choice of concept of product or service to be responsible to the
identified needs of the user (Quality of concept).
iii. Translation of the chosen product concept into a detailed set of
specifications which is faithfully executed, will then meet the user’s
need (Quality of specification).
The total progression composed of these three activities is called ‘‘Quality
of Design’’ and it may be said to consist of Quality of market research:
Quality of concept and Quality of specification.

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 Quality of conformance
• The design must reflect the needs of fitness for use, and the products
must also confirm to the design.
• The extent to which the product does confirm to the design is called
‘‘Quality of conformance’’.
• This extent of conformance is determined by variables as :
i. Choice of process i.e., whether they are able to hold the tolerances.
ii.Training of the supervision and the work force.
iii.Degree of adherence to the program of inspect, test, audit etc.
motivation for quality.
• Higher quality of conformance can be attained with an accompanying
reduction in cost.

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 Consequences of Poor Quality
• Loss of business
• Liability
• Productivity
• Costs

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 Responsibility for Quality
✓ Top management
✓ Design
✓ Procurement
✓ Production/operations
✓ Quality assurance
✓ Packaging and shipping
✓ Marketing and sales
✓ Customer service
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 Costs of Quality
• Cost of quality (COQ) is defined as a methodology that allows an
organization to determine the extent to which its resources are used
for activities that prevent poor quality, that appraise the quality of
the organization’s products or services, and that result from internal
and external failures.
• Having such information allows an organization to determine the
potential savings to be gained by implementing process
improvements.
• This is done by identifying and defining the following categories of
costs which are associated with making, finding, repairing or avoiding
(preventing) defects.

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Costs of Quality

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 Costs of Quality
• Failure Costs - costs incurred by defective parts/products or faulty services.
• Internal Failure Costs
• Costs incurred to fix problems that are detected before the product/service is
delivered to the customer.
• External Failure Costs
• All costs incurred to fix problems that are detected after the product/service
is delivered to the customer.
• Appraisal Costs
• Costs of activities designed to ensure quality or uncover defects
• Prevention Costs
• All TQ training, TQ planning, customer assessment, process control, and quality
improvement costs to prevent defects from occurring
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 Ethics and Quality
• Substandard work
• Defective products
• Substandard service
• Poor designs
• Shoddy workmanship
• Substandard parts and materials

Having knowledge of this and failing to correct and report it in a

timely manner is unethical.

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 Quality Awards
Malcolm Baldrige National Quality Award
❑ The Malcolm Baldrige National Quality Award (MBNQA) is an award
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.
Baldrige Award
❑ The award is the nation's highest presidential honor for performance
Deming Prize
excellence.
❑ Three MBNQA awards can be given annually in six categories:
✓ Manufacturing ✓ Education
✓ Service Company ✓ Healthcare
✓ Small Business ✓ Non-profit

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THE MBNQA CRITERIA CATEGORIES
❑ Organizations that apply for the MBNQA are judged by an independent
board of examiners.
❑ Recipients are selected based on achievement and improvement in
seven areas, known as the Baldrige Criteria for Performance Excellence:
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.

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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.

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Benefits of Baldrige Competition
• Financial success
• Winners share their knowledge
• The process motivates employees
• The process provides a well-designed quality system
• The process requires obtaining data
• The process provides feedback

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European Quality Award
Prizes intended to identify role models
• Leadership
• Customer focus
• Corporate social responsibility
• People development and involvement
• Results orientation
The Deming Prize
• Honoring W. Edwards Deming
• Japan’s highly coveted award
• Main focus on statistical quality
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control
Quality Certification
• ISO 9000:- Set of international standards on quality
management and quality assurance, critical to
international business
• ISO 14000:- A set of international standards for
assessing a company’s environmental performance

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 ISO 9000 Standards
Requirements
• System requirements
• Management
• Resource
• Realization
• Remedial
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 ISO 9000 Quality Management Principles
• Customer focus
• Leadership
• People involvement
• Process approach
• A systems approach to management
• Continual improvement
• Factual approach to decision making
• Mutually beneficial supplier relationships
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 ISO 14000
❑ ISO 14000 - A set of international standards for assessing
a company’s environmental performance
❑ Standards in three major areas
• Management systems
• Operations
• Environmental systems
➢Management systems
• Systems development and integration of environmental
responsibilities into business planning
➢Operations
• Consumption of natural resources and energy
➢Environmental systems
• Measuring, assessing and managing emissions,
effluents, and other waste
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Total Quality Management
A philosophy that involves everyone in an organization in a continual
effort to improve quality and achieve customer satisfaction.

T Q M

• Continuous improving
• Involvement of everyone
• Customer satisfaction

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 The TQM Approach
• Find out what the customer wants
• Design a product or service that meets or exceeds customer wants
• Design processes that facilitates doing the job right the first time
• Pokayoke : fail-safing : foolproofing
• Laptop – projector plug shapes
• Keep track of results
• Extend these concepts to suppliers

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 Elements of TQM
• Continual improvement: Kaizen
• Competitive benchmarking
• Employee empowerment
• Team approach
• Decisions based on facts
• Knowledge of tools
• Supplier quality
• Champion
• Quality at the source: The philosophy of making each worker
responsible for the quality of his or her work.
• Suppliers

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Obstacles to Implementing TQM
• Lack of:
• Company-wide definition of quality
• Strategic plan for change
• Resistance to a change
• Customer focus
• Real employee empowerment
• Red tape
• Strong motivation
• Time to devote to quality initiatives
• Leadership

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 Criticisms of TQM
• Blind pursuit of TQM programs
• Programs may not be linked to strategies
• Quality may not be tied to
• market performance
• profitability
• Failure to carefully plan a program

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 Six Sigma
• A business process for improving quality, reduce cost
and increasing customer satisfaction.
• Statistically
• Having no more than 3.4 defects per million
• Conceptually
• Program designed to reduce defects
• Requires the use of certain tools and techniques
• Exp: Motorola, GE, TI, Kodak

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Six Sigma Programs
• Six Sigma programs
• Improve quality
• Save time
• Cut costs
• Employed in
• Design
• Production
• Service
• Inventory management
• Delivery
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Six Sigma Management components:
• Providing strong leadership
• Defining performance merits
• Selecting projects likely to succeed
• Selecting and training appropriate people
Six Sigma Technical components:
• Improving process performance
• Reducing variation
• Utilizing statistical models
• Designing a structured improvement strategy

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Six Sigma Team
• Top management: essential
• Program champions
• Master “black belts”: tools
• “Black belts”: pivotal role
implement process improvement projects, facility
change convey knowledge to Green belts
• “Green belts”
• Six Sigma Process
• Define Measure Analyze Improve Control

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 Basic Steps in Problem Solving
• Define the problem and establish an improvement goal
• Collect data
• Analyze the problem
• Generate potential solutions
• Choose a solution
• Implement the solution
• Monitor the solution to see if it accomplishes the goal
• Problem: How to improve free-throw percentage?

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 The PDSA Cycle
❑The Shewhart cycle or Deming wheel
which is sometimes known as the plan
do check act (PDCA) methodology, is a
four-step project management tool for
implementing continuous
improvement.
❑It involves systematically testing
possible solutions, assessing the
results, and implementing the ones
that have shown to work.
❑It promotes testing improvements on a
small scale before updating company-
wide procedures and work methods.
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 Process Improvement and Tools
• Process improvement - a systematic approach
• Process mapping, flowchart
• Analyze the process, too few steps, too many steps
• Redesign the process
• Tools
• There are number of tools that can be used for problem solving and
process improvement
• Tools aid in data collection and interpretation, and provide the basis
for decision making

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 The Process Improvement Cycle
Select a
process

Document

Study/document

Evaluate

Seek ways to
Implement the
Improve it
Improved process

Design an
Improved process
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Basic Quality Tools
• Flowcharts
• Check sheets
• Histograms
• Pareto Charts
• Scatter diagrams
• Control charts
• Cause-and-effect
diagrams
• Run charts
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Check Sheet

Billing Errors Monday

Wrong Account

Wrong Amount

A/R Errors

Wrong Account

Wrong Amount

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Histograms
• A bar chart of the frequency of outcomes

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 Pareto Analysis Example:
Problems with printing name tags
80% of the
problems may be
attributed to 20%
of the
Number of defects
causes.

Off Smeared Missing Loose Other

center print label
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Pareto Diagram

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Figure

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A Scatter Diagram
100
90
80
70
60
50 Sales in East Sales in West

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30
20
10
0
0 2 4 6

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Scatter diagram
Determine the correlation between quality and operations factors

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Control Chart
1020
UCL
1010
1000
990
LCL
980
970
0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

Help to detect the correctable causes of variations

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Cause-and-Effect Diagram or Fishbone diagram

Methods Materials
Cause
Cause
Cause
Cause
Cause Cause
Environment Effect
Cause Cause
Cause Cause
Cause Cause

People Equipment

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57
 Run Chart

0.58
0.56
Diameter

0.54
0.52
0.5
0.48
0.46
0.44
1 2 3 4 5 6 7 8 9 10 11 12
T im e (Ho urs )
Time (Hours)
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Tracking Improvements

UCL UCL
UCL

LCL
LCL
Additional improvements
LCL Process centered made to the process
Process not centered and stable
and not stable

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 Methods for Generating Ideas
• Brainstorming
generate a free flow of idea in a group of people
• Quality circles
Group of workers who find ways of improving
• Interviewing:
• Benchmarking: Measure against best
• 5W2H:
what, why, where, when, who, how, how much
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Quality Circles
• Team approach
• List reduction
• Choosing a movie with friends on a Friday night
• Balance sheet
• Choosing an apartment to stay, pros and cons of
each option
• Paired comparisons
• Eliminate alternatives by comparison
• Portland beats Nicks, Nicks beat Lakers,
• Can Portland beat Lakers?
• Transitivity relation assumed among pairs
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 Benchmarking Processes
• Identify a critical process that needs improving
• Identify an organization that excels in this process
• Not necessarily from the same industry
• Contact that organization
• Confidentiality is important
• Analyze the data
• Improve the critical process
Benchmarking numbers is much more common than
benchmarking processes

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