TQM Unit-I Notes
TQM Unit-I Notes
TQM Unit-I Notes
UNIT-1
INTRODUCTION
Indian companies have come under lot of pressure under the present
circumstances because
● Freedom to produce: Many products that were under the
domain of the cottage industry are now being manufactured
by multinational companies (ex: chips, soft drinks).
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● Organizational Systems and Culture: These
multinational companies that enter the Indian market bring
with them proven systems through which they have a great
advantage over many of the Indian organizations that still
need to think in terms of progressive systems.
In view of the above circumstances organizations in India need to
look ahead to be competitive to survive and succeed. One of the best
ways of taking the first step forward is to
● Improve productivity of all activities, inside the
organization and in the delivery process i.e., they need to
respond faster to the environmental requirement and
produce products and services at continually reduced costs.
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"TQM is a management approach for an organization, centered on
quality, based on the participation of all its members and aiming at
long-term success through customer satisfaction, and benefits to all
members of the organization and to society."
Total Quality
The term ‘total quality’ was used for the first time in a paper by
Feigenbaum at the first international conference on quality control in
Tokyo in 1969. The term referred to wider issues within an
organisation.
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organization support. Management must participate in the quality
program, establish a council to develop clear vision, set goals and
direct the programs.
2. An unwavering focus on the customer: Customers are the very
purpose of any organization. Key to an effective TQM is orienting all
activities towards the need of the customer, both internally and
externally.
3. Effective involvement and achievement of the entire work
force: Implementing TQM is everyone’s responsibility. Employees
are the future of any organization. All personnel must be trained in
TQM, its tools. They must be empowered to perform processes in an
optimal manner.
4. Continuous improvement of the business and production
processes: All employees must continually strive to improve all
business and production systems.
5. Treating Suppliers as Partners: 40 to 60 % of the product cost is
outsourced. So all supplier organizations have to be treated as
extension of one’s organisations.
6. Establish Performance measures: Measure and prosper.
Measures should be available to note downtimes, nonconformities
and satisfaction of customers, absenteeism etc.
1. Customer-Focused Organisation
2. Leadership
3. Involvement of People
4. Process Approach
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5. System Approach to Management
6. Continual Improvement
7. Factual Approach to Decision Making and
8. Mutually Beneficial Supplier Relationships.
TQM has evolved over a period of time through practice and the
contribution of principles by various gurus. The whole system is focused
towards the customer, who is the basic purpose for which the organization
exists. The products and services are realized by the combination of
various principles and practices based on people and relationships, and
Tools and Techniques, as shown above. The approach to product
realization is by continuously identifying activities and process for
incremental and breakthrough improvement so as to provide the best to
the customer. This happens when at every stage all activities and process
have progressive performance measures which channelize the
performance in the direction of the set goal.
Benefits of TQM:
▪ Improved quality
▪ Employee participation
▪ Team work
▪ Working relationship
▪ Customer satisfaction
▪ Employee satisfaction.
▪ Increased productivity
▪ Communication]
▪ Profitability
▪ Increased market share
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Quality and Business performance :
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They are shaping organizational values and establishing a managerial
infrastructure to actually bring about change.
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Communication:
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Employee training should focus on the integration and appropriate
use of statistical tools and problem solving.
Leaders must exhibit the new desired behaviour and their general
behaviour should be in accordance with slogans based on their vision,
mission and values.
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If the culture is positive, it enables the implementation of new
management strategies or philosophies as well as the smooth functioning of
the organization. The absence of culture in an organization is one of the
main reasons why transformation to TQM fails. An organization‟s culture is
based on the organization‟s mission, vision, values and its requirements for
success, namely high quality, reliability, customer service, innovation, hard
work and loyalty. Changing people‟s beliefs and attitudes is mainly
obtained by means of experience, observation, interaction, participation
and persuasive communication.
Quality has been the most exploited word but at the same time most
mis-understood word. Quality is an off shoot of the work we do. It is a
bi-product of an act. It shows the level of commitment in doing our
activity.
Examples such as: High quality at low price, Quality Hawaii chappal,
High class quality etc., are being mentioned.
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the product. Many a times the utility/ possession value is more than the
value of the product. Ex: the features of the product are compared to the
cost of the product.
Dimensions of Quality
Manufacturing Quality
Dimensions
● Reliability ● Aesthetics
● Performance
● Durability ● Reputation
● Features
● Service ● Respons
● Conformance
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Performance: A product’s primary operating characteristics.
● Automobile- Braking Distance, Acceleration, Steering, Handling, etc.
● Mobile Phone: Clarity, Audibility, Ease of use, etc.
Features: Additional provisions provided in the product
● Automobile: Stereo systems, Antilock Brakes, Air conditioning
● Mobile Phones: MP3, Email facility,
Reliability: Probability of product surviving over a specified period of time
under specified conditions.
● Automobile: Able to start on cold days, Good mileage
● Mobile Phones: Catches even feeble signals, Battery life is good
Conformance: The degree to which physical and performance
characteristics of a product match pre- established standards
● Automobile: No sounds while driving as all components fit well with
each other.
● Mobile: Battery and additional cards fit well into the unit. Battery gets
charged properly
Durability: The amount of use one gets from a product before it
physically deteriorates or until replacement is preferable.
● Automobile: Corrosion resistance, Upholstery wears.
● Mobile: Battery life, Sturdiness of buttons
Seviceability: The speed, courtesy and competence of repair work.
● Automobile: Ease with which the cables can be replaced.
● Mobile: Service expenses
Aesthetics: How a product looks, feels, tastes, smells and sounds
● Automobile: Colour, ergonomic seats, panel design
● Mobile: Sleekness, weight, Colour combination
Reputation: The name the supplier has made over time
● Automobile: Maruthi Suzuki service.
● Mobile: Nokia’s reliability
Response: Willingness to help customers and provide prompt service.
● Automobile: Replacement of defective parts – TATA Indica, Honda
● Mobile: Nokia battery replacement
Quality Control
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Quality Control can be defined as the entire collection of activities which
ensures that the operation will produce the optimum Quality products at
minimum cost.
Quality Control was introduced to detect and fix problems along the
production line to prevent the production of faulty products. Statistical theory
played an important role in this area. In the 1920s, Dr W. Shewhart
developed the application of statistical methods to the management of
quality. He made the first modern control chart and demonstrated that
variation in the production process leads to variation in product. Therefore,
eliminating variation in the process leads to a good standard of end products.
A Brief History
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and inspect it.
● During the early 40s and 50s the shortage of civilian goods made
production a top priority. Quality was not a priority of top managers
and remained the domain of the specialist managers. Edward
Deming learned statistical quality control from Shewart and
propagated the same to Japanese along with Joseph Juran.
● During late 1970s and 1980s US managers were making
frequent trips to Japan to see the miracle in Japan on Quality
issues.
● During late 1980s automotive industry in US began to emphasize
SPC. Suppliers and their suppliers were required to use these
techniques. Genechi Taguchi introduced his concepts of parameter
and tolerance design and brought a resurgence of design of
experiments.
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● The 1990s ISO 9000 became the worldwide model for quality
management system.
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● Skilled workers were promoted into other roles, leaving less
skilled workers to perform the operational jobs, such as
manufacturing
Process Control
Under this the quality of the products is controlled while the products are in
the process of production.
Process Control consists of the systems and tools used to ensure that
processes are well defined, performed correctly, and maintained so that the
completed product conforms to established requirements. Process Control
is an essential element of managing risk to ensure the safety and reliability
of the Space Shuttle Program. It is recognized that strict process control
practices will aid in the prevention of process escapes that may result in or
contribute to in-flight anomalies, mishaps, incidents and
non-conformances.
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Statistics: Statistics means data, a good amount of data to obtain
reliable results. The science of statistics handles this data in
order to draw certain conclusions.
Relying itself on the probability theory, S.Q.C. evaluates batch quality and
controls the quality of processes and products. S.Q.C. uses three scientific
techniques, namely;
● Sampling inspection
● Analysis of the data, and
● Control charting
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Advantages of SQC
Control Charts
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random sample is drawn from each lot. Control charts detect variations in
the processing and warn if there is any departure from the specified
tolerance limits. These control charts immediately tell the undesired
variations and help in detecting the cause and its removal.
In control charts, where both upper and lower values are specified for a
quality characteristic, as soon as some products show variation outside the
tolerances, a review of situation is taken and corrective step is immediately
taken.
If analysis of the control chart indicates that the process is currently under
control (i.e. is stable, with variation only coming from sources common to
the process) then data from the process can be used to predict the future
performance of the process. If the chart indicates that the process being
monitored is not in control, analysis of the chart can help determine the
sources of variation, which can then be eliminated to bring the process
back into control. A control chart is a specific kind of run chart that allows
significant change to be differentiated from the natural variability of the
process.
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● It warns in time, and if the process is rectified at that time,
scrap or percentage rejection can be reduced.
● It provides information about the selection of process and setting
of tolerance limits.
● Control charts build up the reputation of the organization through
customer’s satisfaction.
Uses:
● (X-Bar) and R charts, for process control.
● P chart, for analysis of fraction defectives
● C chart, for control of number of defects per unit.
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a single decision, such as yes or no, good or bad, acceptable or
unacceptable (e.g., the apple is good or rotten, the meat is good
or stale, the shoes have a defect or do not have a defect, the
lightbulb works or it does not work) or counting the number of
defects (e.g., the number of broken cookies in the box, the
number of dents in the car, the number of barnacles on the
bottom of a boat).
Acceptance Sampling :
Acceptance sampling uses statistical sampling to determine whether to accept
or reject a production lot of material. It has been a common quality control
technique used in industry and particularly the military for contracts and
procurement. It is usually done as products leave the factory, or in some
cases even within the factory. Most often a producer supplies a consumer a
number of items and decision to accept or reject the lot is made by
determining the number of defective items in a sample from the lot. The lot is
accepted if the number of defects falls below where the acceptance number or
otherwise the lot is rejected.
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the working plan of acceptance sampling.
The AQL (Acceptance Quality Level), the maximum % defective that can
be considered satisfactory as a process average for sampling inspection
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In this, a small sample is first drawn. If the number of defectives is less
than or equal to the acceptance number (C1) the lot is accepted. If the
number of defectives is more than another acceptance number (C2) which
is higher, then C1 then the lot is rejected. If in case, the number in the
inspection lies between C2 and C1, then a second sample is drawn. The
entire lot is accepted or rejected on the basis of outcome of second
inspection.
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