Wollo University

Kombolcha Institute of Technology

School of Mechanical and Chemical Engineering
Department of Industrial Engineering

Total quality management (MEng5243)

Instructor: Moges M.(Msc)

 OBJECTIVES OF THE COURSE
1. Be familiar with quality and total quality
management philosophies and approaches.
2. Compare and contrast TQM and ISO 9000.
3. Familiar with statistical process control
techniques.
4. Familiar with how to implement total
quality management and review quality
system.
5. Familiar with quality process monitoring
and control tools.
 CHAPTER –ONE

INTRODUCTION TO
QUALITY
What Is Quality?

Which one is quality for you?

 INTRODUCTION
What Is Quality?
Different people interpret quality differently.
 Few can define quality in measurable terms that can be
operationalized.
 When asked what differentiates their product or
service, the banker will answer “service,” the
healthcare worker will answer “quality healthcare,” the
hotel or restaurant employee will answer “customer
satisfaction,” and the manufacturer will simply answer
“quality product.”

There is no single, universal definition of quality.

 Conti…
Quality is a measure of the customer’s experience with the product or
service with respect to specifications, requirements and expectations.
Quality connotes different meaning to different people.
 Quality is degree of excellence. (Oxford American Dictionary)
 Quality is fitness for use. (Juran)
 Quality is conformance to requirements / specifications. (Crosby)
 Quality should be aimed at the needs of the customer, present and
future. (Deming)
 Conti…

 Quality means best for certain customer conditions. These

conditions are: the actual use and the selling price of the
product – it is what the customer says.(Fegenbaum)
 Quality is providing our customers with products and services
that consistently meet their needs and expectations - Boeing
Company
 Quality is doing the right thing right the first time, always
striving for improvement, and always satisfying the customers
-U.S.A. Department of Defense
 Conti…
Therefore, Different scholars give different interpretations
to the term quality:
 for engineers it is conformance to specifications,
 for users it is fitness for use,
 for marketing it is the degree of excellence at an acceptable
price that will influence the market share.
 for customer service a quality product is that with less
customer complaint
A comprehensive definition of quality is: Exceeding Customers
Expectation Or product or service which fulfils an aggregate
requirement of customers, in all aspects, at present and in the
future and which customers can buy it.
Thus the closer this conformation indicates the higher the degree of
quality.
Conti…
We see from the foregoing discussion that quality is
indeed a multifaceted entity. Consequently, a simple
answer to questions such as “what is quality?” or what
is quality improvement?” is not easy. The traditional
definition of quality is based on the viewpoint that
products and service must meet the equipment of
those who use them.
 To produce products/services that consumers will buy happily;
 Quality dimensions,
 Costs (i.e. sales price and profit),
 Delivery (i.e. production volumes and sales volumes), and
 Safety (including social and environmental factors) must be
comprehensively controlled.
Conti…
Main concerns of Manufacturers and Customers
Manufacturer Customer
 Quality Quality
 Cost Price
 Productivity Availability
Concerns of manufacturer and customer are generally
not the same. Customer usually has no concern for
company productivity and cost.
Quality is the only common concern
Conti…
 Improving Quality has lead to Waste is a failure to use
something wisely, properly,
 Eliminate waste; fully, or to good effect.

 Improve customer satisfaction;

 Increase productivity;
 Enhance profitability; and
 Increase competitiveness.
 Lower rework and scrap costs
Lower cost
 Lower warranty costs
 Dimensions of Quality
The "official" definition of quality by the American
National Standards Institute (ANSI) and the American
Society for Quality Control (ASQC) is "the totality of
features and characteristics of a product or service that
bears on its ability to satisfy given needs."
The dimensions of quality primarily for manufactured
products a consumer looks for in a product include the
following:
• Functionality, - Durability,
• Performance, - Serviceability or Maintainability,
• Reliability, - Aesthetic, and
• Conformance, - Perceived quality.
 Conti…
Functionality Ability of the products to perform the necessary functions to
meet customer requirements.

 Performance : (will the product do the intended job).

The basic operating characteristics of a product; for example, how
well a car handles or its gas mileage. On-time departure of aircraft
Potential customer usually evaluate a product to determine if it will
perform certain specific functions and determine how well it
perform them.
 Reliability: (how often does the product fail?)
Absence of repair during warranty. The probability that a product will
operate properly within an expected time frame; that is, a TV will
work without repair for about seven years. e.g Thirty-minute pizza delivery
Cont…
 Durability: ( how long does the product last).
This is the effective service life of the product
customer obviously want products that perform
satisfactorily over a long period of time.
 Serviceability: (how easy is it to repair a product).
There are many industries where the customer’s
view of quality is directly influenced by how
quickly and economically a repair or routine
maintenance activity can be accomplished.
Conti…
Aesthetics: (what does the product look like?)
This is the visual appeal of the product, often taking
into account factor such as style, color, shape,
packaging alternatives, tactile characteristics, and
other sensory features. For example, soft drink
beverage manufacturers have relied on visual
appeal of their packaging to differentiate their
product from other competitors.
Conti…
Features: (what does the product do?)
Usually, customer associate high quality with products
that have added features: that is, those that have features
beyond the basic performance of the competition.
For example, your mobile has addition features such as
memory, camera audio, TV others mobiles did not
have.
Conti…
Perceived quality: (what is the reputation of the
company or its product?)
In many cases, customer rely on the past reputation of
the company concerning quality of its products. This
reputation is directly influenced by failures of the product
that are highly visible to the public .
e.g. Samsung and techno mobile
Doctor A is better than Doctor B
Conti…
Example:
if you make regular business trips using a particular
airline, and the flight almost always arrives on time and
the airline company does not lose or damage your
luggage, you will probably prefer to fly on that carrier
instead of its competitors.
Conformance to standards: (is the product made
exactly as the designer intended?)
We usually think of a high quality product as are that
exactly meets the requirements placed on it.
 Conti.
For example, how well does the new battery on your mobile?
Manufactured parts that do not exactly meet the designer’s
requirements can cause significant quality problems when they are
used as the components of a more complex assembly. And
automobile consists of several thousand parts. If each one is just
slightly too big or too small, many of the components will not fit
together properly, and the vehicle (or its major subsystems) may
not perform as the designer intended.
CONTI.
CONTI.

WHAT IS THE SECRET

BEHIND THE SUCCESS OF
BUSINESS ORGANIZATIONS?
CONTI.

Quality products & services Customer Satisfaction

Customer satisfaction Survival

Customer satisfaction Competitiveness
Customer satisfaction Excellency
What is quality management system?

What is total Quality management?

What is Quality control?

What is Quality assurance?

Who is responsible to ensure quality?

What are the Quality Costs?

A Quality Management System Is…
A belief in the employee’s ability to solve
problems
A belief that people doing the work are best able
to improve it
A belief that everyone is responsible for quality

It is the continuous, planned and well-targeted

endeavor to improve a service or a product.
Total quality management
Total – Made up of the whole(or) Complete.
„ Quality – Degree of Excellence a product or service
provides to the customer in present and future.
„ Management – Act , art, or manner of handling ,
controlling, directing, etc.
TQM is the art of managing the whole to achieve excellence.
Total Quality Management (TQM) is a management
strategy aimed at embedding awareness of quality in all
organizational processes.
Conti…
 TQM is away of thinking about goals, organizations,
processes and people to ensure that the right things are
done right first time.
 TQM is a management philosophy that seeks to integrate
all organizational functions ( marketing, finance, design,
engineering, and production, customer service, etc.)to
focus on meeting customer needs and organizational
objectives.
 Evolution of Quality
Quality Strategy
Team work involving
. customers & suppliers

TQM Quality Systems,

Problem Solving

Quality Assurance

Statistical Methods,
Quality Control Process Performance

Inspection Error Detection,

Rectification
What is QULITY CONTROL
 Generally, controlling means "defining objectives and
standards, implementing them, verifying the results, and,
if there are deviations, taking corrective measures”.
 On the other hand, Quality Control is a system of
production methods, which economically produces
quality goods or services meeting the requirements of
consumer.
 Quality Control consists of developing, designing,
producing, marketing and servicing products and services
with optimum cost-effectiveness and usefulness, which
customers will purchase with satisfaction. (Ishikawa)
Cont…
Quality control is the engineering & management
activity by which we measure the quality
characteristics of the product, compare them
with specifications or requirements, and take
appropriate remedial action whenever there is a
difference between the actual performance and
the standard.
 If a defective product enters in the market, it will
The Need for Quality Control

cause:
 customer dissatisfaction,
 unnecessary expenditure for warranty, and
 poor product salability.

 Having a quality product increases market share,

resulting in better profits.
Conti…
quality assurance focuses on enhancing and improving
the process that is used to create the end result, rather
than focusing on the result itself.
Among the parts of the process that are considered in
QA are planning, design, development, production and
service.
Quality assurance (QA) refers to the planned and
systematic activities implemented in a quality system
so that quality requirements for a product or service
will be fulfilled.
Two principles included in QA are: "Fit for purpose", the
product should be suitable for the intended purpose;
and "Right first time", mistakes should be eliminated.
Conti…
QA includes management of the quality of raw
materials, assemblies, products and
components, services related to production, and
management, production and inspection
processes.
INSPECTION
 Inspection is the art of determining actual conformity of
product to the specifications laid down for it. It is a tool
to control the quality of a product. Thus, inspection
means checking the acceptability of the manufactured
product. It measures the quality of a product or service in
terms of predefined standards. Product quality may be
specified in terms of strength, hardness, shape, surface
finish, etc.
TYPES OF INSPECTION
 Inspection can be either preventive or corrective.
Preventive inspection is concerned with discovering
defects, the cause of defects, and helping in the removal
of such causes.
 Corrective (remedial) inspection, on the other hand,
deals with sorting out good parts from the bad ones. Its
primary purpose is to discover the defective parts that
have already been manufactured and prevent their use in
the final product. Many firms use both types of
inspection, but the emphasis is often on preventive
inspection. The idea is to prevent the inferior parts from
further processing down the production line. This, in
turn, will reduce the labor cost.
 Who is responsible to ensure quality?

 The central objective of Quality is to eliminate waste by cutting

manufacturing variance to the minimum. This is equally applicable to the
manufacturing as well as to the service giving industries.
Manufacturing variance can be generated throughout the whole closed loop of
the company;
 Marketing.
 Engineering
 Purchasing
 Manufacturing Engineering
 Field service and Erection, therefore quality is not one department
responsibilty,it is the responsibility of everyone.
The commitment starts with top management and spreads throughout the
organization. the quality assurance team must evaluate and oversee each
department’s responsibility in producing a quality product or service. The
following are some specific responsibility associated with the various
departments or units with an organization.
Conti.

Fig .responsibilities of different departments in the closed loop of a

company to ensure quality
Conti.
Marketing
 Determines the needs and requirements of the
customer.
 they supply the information on the price that the
customers is willing to pay.
 data obtained here has an impact on the product
quality design.
 means of obtaining information
 market surveys conducted via questionnaires
 feedback from sales representatives
 customer complaints
Conti.
Product design and development(engineering)
 develop product specification
 determine the raw materials to be used
 decide on the performance characteristics of the
product.
Cont…
Purchasing
 Obtains the raw materials and components for the product. it selects
vendors whose products meet certain quality requirements.
Manufacturing engineering
is responsible in determine the details of manufacturing process.
After the design, including the manufacturing drawings, has been reviewed and finalized,
it is time to plan for manufacture. This will include the following steps:
 Deciding on the method of manufacture.
 Providing the necessary machines, plant, tooling and other equipment for
manufacturing process
 Obtaining and training suitable operators.
 Planning inspection and shop floor quality control.
 Manufacturing department is responsible for producing a quality
product.
 It must control the operations, process parameters, and operators
performance to achieve the desired level of quality.
Conti.
 Inspection and test
 Is responsible for appraising the quality of incoming raw materials
and components as well as the quality of the manufactured
product or service.
 It also specifies the type of inspection devices to use and the
procedures to follow to measure the quality characteristics of
interest.
 Packaging and shipping
concerns itself with how the product is packaged and transported
to the customer.
This function serves to protect the quality of the product during the
process of storage and shipment.
Conti.
 Field service and eraction (customer service)

is responsible for installation,maintenance,and repair of products.

Its purpose is to help the consumer get the most out of the product
and to assist the customer when requested.
This department conducts customer training programs about the
product. And it deals with warranty cost and seeks feed backs
from customers on their satisfaction level.
 Quality costs
Every time work is redone, the cost of quality increases. Examples include:

 The reworking of a manufactured item

 The retesting of rework product
 The rebuilding of a process
As a result, quality costs have emerged as a financial control tool for
management and as an aid in identifying opportunities for reducing
quality costs.
Generally speaking, quality costs are those categories of costs that are
associated with producing, identifying, avoiding, or repairing products
that do not meet requirements. Many manufacturing and service
organizations use four categories of quality costs: prevention costs,
appraisal costs, internal failure costs, and external failure costs which
are defined by American society of quality control (ASQC) (1971).
 Cost of Quality
 Cost of Achieving Good Quality
Prevention costs
 costs incurred during product design
Appraisal costs
 costs of measuring, testing, and analyzing

 Cost of Poor Quality

Internal failure costs
 include scrap, rework, process failure, downtime, and
price reductions
External failure costs
 include complaints, returns, warranty claims, liability,
and lost sales
Prevention Costs
Quality planning costs Training costs
 costs of developing and  costs of developing and
implementing quality putting on quality training
management program programs for employees and
Product-design costs management
 costs of designing products Information costs
with quality characteristics  costs of acquiring and
Process costs maintaining data related to
 costs expended to make sure quality, and development
productive process conforms and analysis of reports on
to quality specifications quality performance
Appraisal Costs
Inspection and testing
 costs of testing and inspecting materials, parts, and
product at various stages and at end of process
Test equipment costs
 costs of maintaining equipment used in testing
quality characteristics of products
Operator costs
 costs of time spent by operators to gather data for
testing product quality, to make equipment
adjustments to maintain quality, and to stop work to
assess quality
Internal Failure Costs
Scrap costs Process downtime costs
 costs of poor-quality products  costs of shutting down
that must be discarded, productive process to fix
including labor, material, and problem
indirect costs
Rework costs Price-downgrading costs
 costs of fixing defective  costs of discounting poor-
products to conform to quality quality products—that is,
specifications selling products as “seconds”
Process failure costs
 costs of determining why
production process is
producing poor-quality
products
External Failure Costs
Customer complaint costs Product liability costs
 costs of investigating and  litigation costs resulting
satisfactorily responding to a from product liability
customer complaint resulting and customer injury
from a poor-quality product
Product return costs Lost sales costs
 costs of handling and replacing  costs incurred because
poor-quality products returned customers are
by customer dissatisfied with poor-
Warranty claims costs quality products and do
 costs of complying with product not make additional
warranties purchases