A presentation on

TQM
 What should we know
 Quality, Quality Control and Quality Assurance
 The philosophy of TQM
 TQM frame work
 Roadblocks for TQM
 Benefits
 Quality gurus
 Features of TQM
 Tools & Techniques
 Quality Improves Profitability

Sales Gains
– Higher sales.
– Higher prices.
– Improved reputation. Increased
Improved
Quality Profits
Reduced Costs
 Increased productivity.
 Lower rework and scrap costs.
 Lower warranty costs.

6-3
 Definitions of Quality
 Totality of features & characteristics that
bears on a product or services ability to
satisfy customer needs. (American Society
for Quality)

 User-Based: What consumer says it is.

 Manufacturing-Based: Degree to which a

product conforms to design specification.

6-4
 What is quality
 Quality is performing better than
expectations
 As per ISO9000-2000 quality is the degree
to which a set of characteristics fulfills
requirements
 Dimensions of quality
Performance, Features, Conformance,
Reliability, Durability, Service, Response,
Aesthetics, Reputation
 Quality Control
 Choosing the control subject… what to control
 Choosing unit of measure
 Setting the target of the control subject
 Creating a sensor which can measure the control
subject
 Measuring actual performance
 Interpreting the difference between target and
actual
 Taking action on the difference
Cost control or inventory control or quality control
 The philosophy of TQM

 Total Quality Management is an

enhancement to the traditional way of
doing the business
 Total Whole
 Quality Degree of Excellence
 Management Controlling/directing
 TQM – A philosophy or set of guiding
principles
 Definition of TQM
 TQM is the application of quantitative
techniques and human resources to
continually improve all the processes
within an organization and exceed
customer needs.
 An integration of fundamental
management principles and techniques,
improvement efforts and technical tools.
 WHAT IS TQM
Quality gives the competitive advantage
TQM is a philosophy featuring
 Customer driven quality
 Strong quality leadership
 Continuous improvement
 Action based on facts, data & analysis
 Employee participation
 Improved two way communication
 Foundation of TQM
 A committed and involved management to
provide long term top to bottom
organizational support
 An unwavering focus on the customer
 Effective involvement and utilization of all
the employees
 Continuous improvement efforts
 Supplier partnership
 Performance measures of all processes.
 Comparison of new and old cultures
Element Old TQM
By Definition Product oriented Customer oriented
Priority After cost On par to cost
Time frame Short Term Long Term
Emphasis Detection Prevention
Errors Operations Systems
Responsibility Quality Control Everyone
Problem solving Managers Teams
Procurement Price Life-cycle costs
Manager’s Role Plan, assign Delegate, coach,
Control facilitate
 TQM Framework

Tools &
Gurus Techniques

Product or
Principles &
Service Customer
practices
realization
 Awareness
The starting point
 Quality of product or service must be
improved
 Quality and productivity go hand in hand
 Customer is god
 It is better customer’s views are given
value
 TQM is not a overnight journey but long
one
 Profits follow quality
 Roadblocks for TQM
 Lack of management commitment
 Inability to change org. culture
 Improper planning
 Lack of continuous training and Education
 Lack of data & results or access to data or
ineffective measurement
 Inadequate attention to customer (I&E)
 Inadequate use of empowerment &
teamwork
 Incompatible org structure , individualistic
 History of TQM
 Dr. Shewart began using statistical control
at the Bell Institute in 1930s
 Military standards developed in 1950s
 After World War II, Japanese Union of
Scientist and Engineers began consulting
with Deming
 Deming Prize introduced in Japan in 1950
 History of TQM continued
 Juran writes “Total Quality Control” 1951
 Juran makes first trip to Japan in 1954
 “Quality” Japan’s national slogan in 1956
 First quality circles created in 1957
 10,000 quality circles by 1966
 100,000 quality circles by 1977
 First U.S. quality circle 1974
 History of TQM continued
 No. of QC’s in Japan - 4 million.

 No. of Projects/QC/Year - 50+

 No. of QC Conferences - 200+ (National)

 Attendance in each - 50,000+

 Case studies in each Conf. - 4,000+

 Five Steps in TQM
 Determine what customers want
 Develop products and services
 Develop production system
 Monitor the system
 Include customers and suppliers
 New Responsibilities of
Quality Control Department
 Training employees how to control quality
 Conducting random quality audits
 Consulting on quality problems
 Determining cost of quality
 Helping implement quality control ideas
 Overseeing final test of finished goods
 Quality Advocates
 U.S. Quality Innovators
 Walter Shewhart (1920s -1940s)
 W. Edwards Deming (post WWII through
1980s)
 Joseph M. Juran (consultant post WWII
through 1980s)
 Philip Crosby (1980s)
 Japanese Quality Innovators:
 Kaoru Ishikawa (post WWII - 1980s)
 Genichi Taguchi (1960s - 1980s)
cavorite-lis
n
-fGET
tg/stores/d
communit
rate-item
cust-rec
just-say-no
true
m/justsay

Economic Control of Quality of Manufactured Product (1931)

 Walter A Shewhart
 Dr. W.A. Shewhart , the first person to
give thrust to Quality by recognizing that
variability is a fact of industrial life.
 Identified acceptable and unacceptable
variations.
 Pioneer of modern quality control
recognized the need to separate variation
into assignable and un-assignable causes
(defined “in control”.)
 Walter A Shewhart
 Introduced the concept of Control Chart
(e.g. X-bar and R chart).
 Originator of the plan-do-check-act cycle.
 Perhaps the first to successfully integrate
statistics, engineering, and economics.
 Walter A Shewhart
defined quality in terms of objective and
subjective quality
– objective quality: quality of a thing
independent of people.
– subjective quality: quality is relative to
how people perceive it. (value)
 W. Edwards Deming

 Dr. Deming introduced the

concept of Deming’s Plan
Action
Wheel.
 According to Dr.Deming
Quality is as defined by the Check Do
desires and needs of
customers
 W. Edwards Deming

 Studied under Shewhart at Bell Laboratories

 Contributions: – well known for helping
Japanese companies apply Shewhart’s statistical
process control.
 Major source of poor quality is variation
 Quality improvement the responsibility of top
management
 All employees should be trained in use of
problem solving tools and especially statistical
techniques
 Deming’s 14 Points

 Create constancy of purpose

 Adopt the new philosophy
 Cease dependence on mass inspection
 End practice of awarding business on basis of
price tags
 Improve constantly and forever
 Institute modern methods of training
 Institute modern method of supervision
 Deming’s 14 Points continued

 Drive out fear

 Breakdown organizational barriers
 Eliminate arbitrary numerical goals
 Eliminate work standards and quotas
 Remove barriers that reduce pride of
workmanship
 Institute a vigorous program of education and
training
 Push the other 13 points everyday
The Deming Chain Reaction
Costs Decrease:
Improve (Less rework, Productivity
Quality fewer mistakes, Improves
less scrap)

Achieve Greater
Provide Jobs Market Share
Stay in
and (higher quality
Business
More Jobs products at less cost)
Joseph Juran
 QUALITY
 Dr. J.M.Juran , Juran’s Quality triology
introduced the  Planning
concept of Business  Control
Process Quality  Improvement
Management.
 Author of Quality
 As per Juran Quality is
Control
fitness for use.
Handbook(1951)
 Need to place more
emphasis on planning
and improvement
 Juran
Quality Planning Quality Control

40
Cost of Poor Quality

20

0
Time
 Joseph M. Juran

 Contributions
– also well-known for helping improve
Japanese quality.
– directed most of his work at executives
and the field of quality management.
- developed the “Juran Triology” for
managing quality:
– Quality planning, quality control, and
quality improvement.
 Joseph Juran continued

 Organizations move through 4 phases

1.Minimize prevention and appraisal costs –
results in increased external failure costs
2.Increase appraisal costs – finds defects
sooner and raises internal costs
3.Process control introduced increasing
appraisal costs but lowering internal and
external failure costs
4.Prevention costs increased in effort to lower
total quality costs
 Quality Costs

 Two primary sets of costs involved in quality

– Control costs
– Failure costs
 These costs are often as high as 15 to 35% of
sales
 Costs often broken down into four categories
 Category 1:
Prevention Costs
 Costs associated with trying to prevent defects
and errors
– Training for quality
– Educating suppliers
– Designing product for quality
– Designing production system for quality
– Preventive maintenance
 Category 2:
Appraisal Costs
 Costs of determining current quality
– Measuring and testing parts
– Running special test laboratories
– Acquiring special testing equipment
– Conducting statistical process control
– Inspecting incoming materials
 Category 3:
Internal Costs of Defects
 Costs incurred when defects are found before
shipment/delivery to customer.
– Labor and materials going into scrap
– Reworking and retesting to correct defects
– Downtime of equipment and labor while
waiting for repairs
– Yield losses
 Category 4:
External Costs of Defects
 Costs of trying to correct defects after receipt
by customer.
– Lost of customer goodwill
– Recalls to correct problem
– Warranty, insurance, and legal suit
settlements
 Feigenbaum

 Developed the concept of Total Quality Control.

– System for managing the entire value-chain
connecting supplier to customer.
 “If you want to find out about your quality, go
out and ask your customer.”
 Quality control staff = Facilitators.
Phillip Crosby
 Philip Crosby
Quality Management advocate, consultant,
and author Quality is Free

The Four absolutes of quality including:

#1- quality is defined by conformance to
requirements, not “goodness”.
#2 - system for causing quality is
prevention not appraisal.
#3 - performance standard is zero defects,
not “that’s close enough.”
#4 - measurement of quality is the price of
nonconformance, not indexes.
 Philip Crosby

•Quality is conformance to requirements,

not elegance
•Better to produce item right the first
time than to try to inspect quality.
•Quality at the source - responsibility
shifted from quality control department
to workers
 Crosby
Cost of Conformance

Prevention

Low High
Quality
 FATHER OF JAPANESE QCs

QUALITY BEGINS WITH EDUCATION AND ENDS WITH

 Kaoru Ishikawa
Contributions
Developed concept of true and substitute quality
characteristics
true characteristics are the customer’s view
substitute characteristics are the producer’s
view
degree of match between true and substitute
ultimately determines customer satisfaction.
Advocate of the use of the 7 tools (e.g., cause-
and-effect diagram)
Advanced the use of quality circles (worker
quality teams).
Respect for humanity as a management
 QUALITY
Machine Material Measurement

 Dr. Ishikawa,known
as the father of
Quality Circles ,
Introduced the
casue and effect Effect

diagram, the famous

fish bone diagram. Man Method
 Genichi Taguchi
 Contributions:
 Taguchi methods emphasize consistency of
performance and reduced variation
 Quality loss function (deviation from target is a
loss to society).
 Parameter design (robust engineering) which is
an application of Design of Experiments.
– Identify key variables
– Reduce variation on the important variables
– Open up tolerances on unimportant variables
 Taguchi Methods
 Design for Manufacturability (DFM)
 Procedure for statistical testing to determine best
combination of product and transformation
system design that will make output relatively
independent of normal fluctuations in the
production system
 Taguchi

Loss

Lower Upper
specification Target specification
limit limit
 Leadership
 Quality Control leadership at all levels
and all functions of the organization
 Senior Management must practice the
philosophy of MBWA. Get out of office.
Visit customers, suppliers, departments
 Push problem solving and decision
making to the lowest appropriate level by
delegating authority and responsibility
 Leadership
 Senior Mangers must stay informed on
quality improvement by reading books,
attending seminars and talking to others.
 Celebrate the organizations quality
efforts.
 Be visible as leaders in quality initiatives
 Communicate, communicate,
communicate about need for TM
 Leadership
1. Leaders develop the Vision, Mission, Values and
Ethics and are role models of a culture of
excellence
2. Leaders are personally involved in ensuring the
organization’s management system is developed,
implemented and continuously improved
3. Leaders interact with customers, partners, and
representatives of society
4. Leaders reinforce a culture of excellence with the
organization’s people
5. Leaders identify a champion, organizational
change
 Customer perception of Quality

Conforming
Offer

Performance, Customer
Needs
features, service,
warranty, price,
reputation
 Customer perception of Quality

Conforming
Offer

Customer
Needs
Performance,
features, service,
warranty, price,
reputation
 Customer perception of Quality
Conforming
Offer

Customer
Needs

Performance,
features, service,
warranty, price,
reputation
 Customer Satisfaction Diagram

Inputs from
Output to
External
Internal Customer External
Customer
Customer

Satisfied Employee Satisfied Customer

 Customer Feedback
 Internal Customer Survey
 External Customer Survey
 Survey Instrument
 Customer needs/wants
 Customer feedback card
 Customer Visits
 Toll free Telephones
 Customer Complaints
 Employee Involvement
 Motivation
 Maslow’s Hierarchy of needs
 Herzberg Two Factor Theory
 How to motivate workforce
 Know Yourself
 Know your employees
 Establish a positive attitude
 Share the goals
 Monitor progress
 Develop interesting work
 Communicate effectively
 Celebrate Success
 Employee Surveys
 Survey Instrument
 Administer
 Compile
 Analyze
 Empowerment
 Everyone must understand the need to
change
 System needs to change
 Organization to enable employee through
information, education, skills
 Teamwork
 Process Improvement Team
 Cross-functional Teams
 Self Managed Teams
 Suggestion System
Ground rules
 Be progressive by regularly asking employees for
suggestions
 Remove fear by focusing on the process not on
the person
 Simplify the process
 Respond quickly to suggestions with a time
frame
 Reward the idea with published recognition
 Recognition and Reward
 Recognition is a form of motivation
 Acknowledge publicly the positive
contributions of an individual or team
both in verbal and written form
 Employees to be involved in the planning
and implementation of the reward system
 Valid and genuine recognition without any
rankings
 Continuous Process Improvement
1. Identify the opportunity
2. Analyze the current Process
3. Develop the optimal solutions
4. Implement Changes
5. Study the results
6. Standardize the solution
7. Plan the future
Continuous Process Improvement Cycle

1. Identify the
opportunity

7. Plan for
the future
2. Analyze
Act Plan the process

6. Standardize Check 3. Develop the

Do
the solution optimal Solution

5. Study
4. Implement
the results
 Supplier partnership
 Sourcing (Sole, Multiple, Single)
 Supplier selection (Produce or Outsource)
 Supplier certification (QR)
 Supplier Rating by customer
 Relationship management (Training, Team
Approach, Recognition)
 Performance Measures
 Simple
 Few in number
 Developed by users
 Relevance to customer
 For Improvement
 Cost
 Visible
 Timely
Examples
 National Semiconductor

 Early proponent of total quality

– Quality circles 1981
– Preventive maintenance 1982
– Statistical process control 1983
– Design of experiment techniques 1984
– Design for manufacturing techniques 1986
 National Semiconductor
continued
 Second stage of quality initiatives
(1990s)
– Focused on customer-supplier relationships
– Customer satisfaction
– Customer score cards
– Process analysis
– Employee empowerment
– Team strategies
– Problem solving techniques
– Visioning
 National Semiconductor
continued
 Third stage
– Personal mastery
– Shared vision
– Systems thinking
– Team learning
Quality Management
Perspectives
 Total Quality Management
(TQM)
 Quality problems do not exist, rather
organizations have functional problems
 Zero defects only meaningful performance
standard
 Cost of quality the only performance
measure
 Quality Circles
 Focus on all problems facing workers
 Composed of natural work groups
 Not limited to shop employees
 Usually spend couple hours per week on
company time analyzing problems
 Quality Tools
 Process analysis  Scatter diagram
 Run chart  Fishbone chart
 Control chart  Presentation skills
 Pareto chart  Analysis skills
 Histogram  Brainstorming
Tools for Quality Control
 Tools for Quality Control
continued
Measurement
Materials
Holes
Curing Vibrations

Finish

Grinding Speed Crane

Scratches
Cutting

Tools
Machines Men Methods
Quality Function Deployment (QFD)
 Tools for helping translate customer
desires directly into product service
attributes.
 Improves customer Satisfaction
 Reduces implementation time
 Voice of the Customer for customer
expectations
 Benchmarking

Comparing an organization’s performance to

performance of other organizations.
 Purposes for Benchmarking
 Comparing an organization’s performance
to the best organization’s performance
 Comparing an organization’s business
processes with similar processes
 Comparing products and services
 Identifying best practices to implement
 Projecting trends
 Steps in Benchmarking
 Preparing for the study
– obtaining top management support
 Collecting data
– published data
– original research
 Using what was learned to improve
organizational performance
 Benchmarking Goals
 Learning from experiences of others
 Determining how organization is
performing relative to the best
 Helping to prioritize improvement efforts
– developing stretch goals
– overcoming complacency within organization
 Quality in Services
 Measuring is difficult
 Training in standard procedures often
used to improve quality
 One way to measure quality of services is
to use customer satisfaction surveys
 J.D. Power and Associates uses surveys to
rate domestic airlines, hotel chains, and
rental car companies.
 Rating the Performance of
Domestic Airlines
 On-time performance (25%)
 Airport check-in (11%)
 Courtesy of flight attendants (11%)
 Seating comfort (11%)
 Service Defections
 Organizations should monitor customer
defections
– feedback from defecting customers can be
used to identify problem areas
– can determine what is needed to win them
back
– changes in defection rate can be used as early
warning signal
 Quality
Awards/Certifications
 Deming Prize Criteria
 Policies and  Standardization
objectives  Control
 Operation of the  Quality assurance
organization  Results
 Education  Future plans
 Information
Management
 Analysis
 2001 Malcolm Baldrige Award
Criteria
 Leadership (120 points)
– organizational leadership
– public responsibility and citizenship
 Strategic planning (85 points)
– strategy development process
– strategy deployment
 Baldrige Framework for
Performance Excellence
Environment, Relationship and Challenges

2 5
Strategic Human
Planning Resource Focus
1
7
Leadership
Business
Results
3 6
Customer & Process
Market Focus Management
4 Measurement, Analysis and Knowledge Management
 2001 Malcolm Baldrige Award
Criteria continued
 Customer and market focus (85 points)
– customer and market knowledge
– customer relationship and satisfaction
 Information and analysis (90 points)
– measurement and analysis of organizational
performance
– information management
 2001 Malcolm Baldrige Award
Criteria continued
 Human resource focus (85 points)
– work systems
– employee education, training, and
development
– employee well-being and satisfaction
 2001 Malcolm Baldrige Award
Criteria continued
 Process management (85)
– product and service processes
– business processes
– support processes
 2001 Malcolm Baldrige Award
Criteria continued
 Business results (450 points)
– Customer-focused results
– financial and market results
– human resource results
– organizational effectiveness results
 EFQM - MODEL
ENABLERS 50% RESULTS 50%

PEOPLE 9% 2 5

RESULTS 15%
KEY PERFORMANCE
PEOPLE 6
RESULTS 9%
LEADERSHIP 10%

PROCESS – 14%
POLICY &
CUSTOMER 7
3
STRATEGY 8% RESULTS 20%

SOCIETY
1 PARTNERSHIP & 4 RESULTS 6%8 9
RESOURCES 9%

EACH ENABLER CRITERIA IS HAVING EACH OF THE RESULT

FIVE SUB CRITERIA(2 IS HAVING ONLY 4 CRITERIA IS HAVING TWO
SUB CRITERIA), EACH OF THESE SUB SUB CRITERIA, EACH OF
CRITERIA HAVING SEVEN ASPECTS THESE HAVING FIVE
EACH ASPECTS
EFQM Business Excellence Model
 The business excellence model is a non-
prescriptive frame-work that recognizes that
there are many approaches to achieving
sustainable excellence.
 Within this approach, there are some fundamental
concepts which underpin all Business excellence
models. These are broadly-
– Result orientation
– Customer Focus
– Leadership and constancy of purpose
– Management by processes and facts
– People development and involvement
– Continuous learning, innovation and improvement
– Partnership development
– Corporate Social Responsibility
 TQM activities
 ISO, OHSAS, SA systems
 Quality Circles
 Professional Circles
 5S
 Employee Suggestion Scheme
 Business improvement through Benchmarking,
Six –Sigma concepts
 Balanced Score Card
 Kaizen
 ISO/OHSAS
ISO-9000 standards initially published
in 1988 and revised for the first time in
1994 and in 2000 for the second time ,
has been adopted by more than 3,50,000
Companies of 150 countries globally for
improved quality management systems. 91
standardization organizations of various
countries are members of ISO. India is
represented in ISO by Bureau of India
Standards (BIS).
 ISO 9000
 Guidelines for designing, manufacturing,
selling, and servicing products.
 Selecting an ISO 9000 certified supplier
provides some assurance that supplier
follows accepted business practices in
areas covered by the standard
 Elements of ISO 9000
 Management Responsibility
 Quality System  Control of Inspection,
 Contract Review Measuring, and Test
 Design Control Equipment
 Document and Data Control
 Inspection and Test Status
 Purchasing
 Control of Nonconforming
Product
 Control of Customer Supplied 
Product Corrective and Preventive
Action
 Product Identification and
Traceability
 Handling, Storage,
Packaging, Preservation, and
 Process Control Delivery
 Inspection and Testing  Internal Quality Audits
 Training
 Servicing
 Statistical Techniques
  SIX SIGMA
Six Sigma is a business process that allows companies drastically
improve their bottom-line by designing and monitoring everyday
activities in a way that minimize waste ands resources while
maximizing customer satisfaction through a collection of managerial,
Engineering and Statistical Concepts.
Five Phases in Six Sigma

DEFINE MEASURE ANALYZE IMPROVE

CONTROL
 SIX SIGMA IS A POPULAR MANAGEMENT APPROACH FOR IMPROVING
PROCESSES TO REACH ALMOST A ZERO DEFECT STAGE .

Six Sigma teams use

extremely rigorous
data collection and
statistical analysis to
find out sources of
errors and to find ways
to eliminate them. SIGMA DPMO YIELD

1 SIGMA 6,91,500 (30.85%)

2 SIGMA 3,08,500 ( 69.15%)
3SIGMA 66,800 ( 93.32%)
DEFEC
4 SIGMA 6200 (99.38%)
TS 5 SIGMA 230 (99.977%)
6 SIGMA 3.4 (99.9996%)
 SIX SIGMA STRUCTURE

CHAMPION

MASTER BLACK BELT

BLACK BELTS * GREEN BELTS

PROJECT TEAM

SIX SIGMA PROJECTS