Project Report On PRODUCTIVITY IMPROVEMENT THROUGH TOTAL QUALITY MANAGEMENT Submitted in partial fulfilment of requirements For the award of the Degree of BACHELOR OF ENGINEERING IN PRODUCTION ENGINEERING By ABHINANDAN KUMAR Under the guidance of Prof. KAPIL DEV PRASAD Department of Production Engineering DEPARTMENT OF PRODUCTION ENGINEERING BIRLA INSTITUTE OF TECHNOLOGY, MESRA, RACHI 2014

1. Project Report
On
PRODUCTIVITY IMPROVEMENT
THROUGH TOTAL QUALITY
MANAGEMENT
Submitted in partial fulfilment of requirements
For the award of the Degree of
BACHELOR OF ENGINEERING
IN
PRODUCTION ENGINEERING
By
ABHINANDAN KUMAR
Under the guidance of
Prof. KAPIL DEV PRASAD
Department of Production Engineering
DEPARTMENT OF PRODUCTION
ENGINEERING
BIRLA INSTITUTE OF TECHNOLOGY,
MESRA,RACHI

2. 2014
DECLARATION CERTIFICATE
This is to certify that the project entitled “PRODUCTIVITY
IMPROVEMENT THROUGH TOTAL QUALITY MANAGEMENT”
submitted by ABHINANDAN KUMAR in partial fulfilment for the
award of the degree of B.E in Production Engineering of Birla
Institute of Technology, Mesra, Rachi is the record of the student
own work carried out under my guidance and supervision.
No part of this project has been submitted to any other
university/institute for the award of this or any other degree.
DATE: Prof. KAPIL DEV PRASAD
(Department of Production Engineering)

3. CERTIFICATE OF APPROVAL
This project entitled “PRODUCTIVITY IMPROVEMENT
THROUGH TOTAL QUALITY MANAGEMENT” is here by
approved as a creditable engineering study carried out and
presented in a satisfactory manner to narrate its acceptance as
prerequisite to the degree for which it is being submitted.
(Internal Examiner)
(External Examiner)
Head of Department
Department of Production Engineering

4. ACKNOWLEDGMENT
Working on this project on “PRODUCTIVITY IMPROVEMENT
THROUGH TOTAL QUALITY MANAGEMENT” was a source of
immense knowledge to me. We would like to express my sincere
gratitude to Prof. Kapil Dev Prasad for his guidance and valuable
support thought out the course of this project work. We
acknowledge with a deep sense of gratitude, the encouragement
and inspiration received from our faculty members and
colleagues. We would also like to thank our parents for their love
and support.
ABHINANDAN KUMA

5. ABSTRACT
My project argues that the Total Quality Management concept and its
implementation is the critical need for the survival of industries. In the meantime,
lean manufacturing and constraint management could work together to improve
productivity, efficiency and quality. The article discusses the environment in which
businesses are operating, the effect of the total quality management on
productivity and presents some of the benefits that were realized by implementing
total quality management. Direct benefits from combining the concepts of lean
manufacturing and constrained management during the productivity improvement
process by using automation reduce production cycle times by more effectively
designing and scheduling the movement of robots. The ultimate goal is to satisfy
customer’s demand. My project discusses how constrained management
substantially increases production.

6. PRODUCTIVITY
IMPROVEMENT THROUGH
TOTAL QUALITY
MANAGEMENT

7. 1. How to increases productivity of an
Industry?
2. General methods used in Industry to
increases productivity.
3. What is TQM?
4. How TQM helps to improve productivity
of an Industry?
5. Total Quality Management model and
productivity.
6. TQM, Constraint management, Lean
production, six sigma – comparison,
relationships &competitive advantage.
7. Conclusions
8. Bibliography:

8. TQM companies/organisations in India
Practices and work culture in these TQM
companies
TVS, Sundram Fasteners, TATA,
INTRODUCTION
Intense global competition and
diminishing trade barriers are making
it more and more difficult for
companies to maintain their market
share. Competition from companies
operating in different markets has
increased as advancements in
telecommunications and information
technology have broken down
traditional barriers to entry.

9. In a competitive environment, a
business must persuade a customer to
buy its products rather than those of
competitors at a price that is more
than its cost of production. A
rational customer, however, would like
to maximize value for his money.
Therefore, a successful producer must
enhance the total value of his
products so that the price is
acceptable to the customer while his
own costs are low enough to allow him
to make a profit.
Total quality management (TQM) is all
about fostering a culture that is
continuously oriented towards
increasing customer satisfaction while
minimizing the real cost of
production.
Total Quality Management is a
management approach that originated in
the 1950's and has steadily become
more popular since the early 1980's.
Total Quality is a description of the
culture, attitude and organization of
a company that strives to provide
customers with products and services
that satisfy their needs. The culture

10. requires quality in all aspects of the
company's operations, with processes
being done right the first time and
defects and waste eradicated from
operations.
―Total Quality Management, TQM, is a
method by which management and
employees can become involved in the
continuous improvement of the
production of goods and services. It
is a combination of quality and
management tools aimed at increasing
business and reducing losses due to
wasteful practices.‖
Some of the companies who have
implemented TQM include Ford Motor
Company, Phillips Semiconductor, SGL
Carbon, Motorola and Toyota Motor
Company.
• Productivity is usually taken in
isolated scenario and cases.
• This usually lacks the holistic
system approach of a productivity
improvement project starting from its
vision till operational tasks.

11. • As such, the benefit gained at one
part of a system in time is eaten by
the sluggishness performance at
another part of the same system.
• The focus of discussion here is at
the holistic approach of
productivity; starting from:
Its basic concept,
Associated factors affecting it,
The TQM tools and techniques used
in productivity improvement program
and
Measurement in all types of
industries, social and academic
fields.
• Due to sever impact of productivity
on national economy, it is at the top
of national agenda of industrialized
countries to have good monitoring and
assessment system of performance of
individuals and organizations.
• Underdeveloped and developing
courtiers can take great advantage out
of productivity implementation as the
huge gap for productivity improvement
in these economies.

12. • Higher productivity can be linked to
national prosperity and socioeconomic
development and balancing system.
BASIC DEFINITION
STATISTICS
Statistics means a good amount of data
to obtain reliable results. The
science of statistics handles this
data in order to draw certain
conclusions. Statistical techniques
find extensive applications in quality
control, production planning and
control, business charts, linear
programming, etc.
QUALITY
Quality is a relative term and is
generally explained with reference to
the end use of the product.
A componentise said to be of good
quality if it works well in the
equipment for which it is meant.
Quality is thus defined as fitness for
purpose.

13. Plant Manager
Superintendents
Accounting Design and Production
Quality Plant Procurement
Industrial
Development
Engineering Relations
Engineering
Assistant superintendent
of Quality
Department Head, Parts Department Head,
Product
Quality Control Quality Control
Quality General foremanQuality
General Foremen or
Enguneers Foreman Engineers Foremen
of
` of
Inspection Inspection
and
Testing Labs
Organization of an Inspection Department
In manufacturing, a measure of
excellence or a state of being

14. free from defects, deficiencies and si
gnificant variations. It is brought
about by strict
and consistent commitment to certain
standards that achieve uniformity of
a product in order to satisfy
specific customer or user requirements
. ISO 8402-
1986 standard defines quality as "the
totality
of features and characteristics of a
product or service
that bears its ability to satisfy
stated or implied needs." If
an automobile company finds a defect
in one of their cars and makes a
product recall,
customer reliability and
therefore production will decrease
because trust will be lost in the
car's quality.
CONTROL
Control is a system for measuring and
checking (inspecting) a phenomena.
It suggests
When to inspect
How often to inspect
How much to inspect.

15. In addition, it incorporates a
feedback mechanism which explores the
cause of poor quality and takes
corrective action.
What is TQM? : Basic
Concepts
Total Quality Management / TQM is
an integrative philosophy of
management for continuously improving
the quality of products and processes.
TQM is based on the premise that the
quality of products and processes is
the responsibility of everyone
involved with the creation or
consumption of the products or
services which are offered by an
organization, requiring the
involvement of management, workforce,
suppliers, and customers, to meet or
exceed customer expectations.

16. Cua, McKone, and Schroeder (2001)
identified nine common TQM practices:
1. cross-functional product design
2. process management
3. supplier quality management
4. customer involvement
5. information and feedback
6. committed leadership
7. strategic planning
8. cross-functional training
9. employee involvement

17.  TQM is an integrated organization
approach in delighting customers
(both external and internal) by
meeting their expectations on a
continuous basis through everyone
involved with the organisation
working on continuous improvement in
all product/processes along with
proper problem methodology.
TQM means activities involving
everyone in a company- Management and
workers in a totally integrated
effort toward improving performance
at every level.
This improved performance is directly
towards satisfying cross-functional
goal as Quality, Cost, Manpower
development, Quality of work life
etc.
There activities ultimately lead to
increased customer and Employee
satisfaction,
Definition

18. Total Quality Management is
formally defined in BS 7850-1,
paragraph 3.1, as management
philosophy and company practices
that aim to harness the human and
material resources of an
organization in the most effective
way to achieve the objectives of
the organization.
In short, the definition says
continuous meeting agreed customer
requirements at the lowest cost by
realising the potential of all
employees.”
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.
A core definition of total quality
management (TQM) describes a
management approach to long–term

19. success through customer
satisfaction. In a TQM effort, all
members of an organization
participate in improving processes,
products, services, and the culture
in which they work.
 In my word, the continuous process
of reducing or eliminating errors
in manufacturing, streamlining
supply chain management, improving
the customer experience and
ensuring that employees are up-to-
speed with their training. Total
quality management aims to hold all
parties involved in the production
process as accountable for the
overall quality of the final
product or service.
Total Quality Management / TQM is
an integrative philosophy of
management for continuously
improving the quality of products
and processes.
The simple objective of TQM is "Do
the right things, right the first
time, every time"

20. Summary of Total Quality
Management
Total quality management can be
summarized as a management system for
a customer-focused organization that
involves all employees in
continualimprovement. It uses
strategy, data, effective
communications and involvement of all
level employees to integrate the
quality discipline into the culture
and activities of the organization.
•Customer-focused: The customer
ultimately determines the level of
quality. No matter what an
organization does to foster quality
improvement—training employees,
integrating quality into the design
process, upgrading computers or
software, or buying new measuring
tools—the customer determines whether
the efforts were worthwhile or not.

21. •Total employee involvement: All
employees participate in working
toward common goals. Total employee
commitment can only be obtained after
fear has been driven from the
workplace, when empowerment has
occurred, and management has provided
the proper environment. High-
performance work systems integrate
continuous improvement efforts with
normal business operations. Self-
managed work teams are one form of
empowerment.
•Process-centred: A fundamental part
of TQM is a focus on process thinking.
A process is a series of steps that
take inputs from suppliers (internal
or external) and transforms them into
outputs that are delivered to
customers (again, either internal or
external). The steps required to carry
out the process are defined, and
performance measures are continuously
monitored in order to detect
unexpected variations in the process.

22. •Integrated system: Although an
organization may consist of many
different functional specialties often
organized into vertically structured
departments, it is the horizontal
processes interconnecting these
functions that are the focus of TQM. ?
Micro processes add up to larger
processes, and all processes aggregate
into the business processes required
for defining and
•Implementing strategy: Everyone must
understand the vision, mission, and
guiding principles as well as the
quality policies, objectives, and
critical processes of the
organization. Business performance
must be monitored and communicated
continuously. ? An integrated business
system may be modelled after the
Baldrige National Quality Program
criteria and/or incorporate the ISO
9000 standards. Every organization has
a unique work culture, and it is
virtually impossible to achieve

23. excellence in its products and
services unless a good quality culture
has been fostered where everyone works
for the quality. Thus, an integrated
system connects business improvement
elements in an attempt to continually
improve and exceed the expectations of
customers, employees, and all other
stakeholders.
•Strategic and systematic approach: A
critical part of the management of
quality is the strategic and
systematic approach to achieving an
organization’s vision, mission, and
goals. This process, called strategic
planning or strategic management,
includes the formulation of a
strategic plan that integrates quality
as a core component.
•Continual improvement: A major thrust
of TQM is continual process
improvement. Continual improvement
drives an organization to be both
analytical and creative in finding

24. ways to become more competitive and
more effective at meeting stakeholder
requirements and expectations.
• Fact-based decision making: In order
to know how well an organization is
performing, data on performance
measures are necessary. TQM requires
that an organization continually
collect and analyse data in order to
improve decision making accuracy,
achieve consensus, and allow
prediction based on past history.
•Communications: During times of
organizational change, as well as part
of day-to-day operation, effective
communications plays a large part in
maintaining morale and in motivating
employees at all levels.
Communications involve strategies,
method, and timeliness.
These elements are considered so
essential to TQM that many

25. organizations define them, in some
format, as a set of core values and
principles on which the organization
is to operate.
TQM Principle
(i) Agree customer requirements
(ii) Understand customers/suppliers
(iii) Do the right things
(iv) Do things right first time
(v) Measure for success
(vi) Continuous improvement is the
goal
(vii) Management must lead
(viii) Training is essential
(ix) Communicates as never before
TQM is a process of change in terms
of values, beliefs, style and
activity.
The concepts are essentially simple
to understand and yet are difficult
to implement.

26. Basic Principles of Total
Quality Management (TQM)
The basic principles for the Total
Quality Management (TQM) philosophy of
doing business are to satisfy the
customer, satisfy the supplier, and
continuously improve the business
processes.
Questions you may have include:
How do you satisfy the customer?
Why should you satisfy the
supplier?
What is continuous improvement?
This lesson will answer those
questions.
Satisfy the customer
The first and major TQM principle is
to satisfy the customer--the person
who pays for the product or service.
Customers want to get their money's
worth from a product or service they
purchase.

27. Users
If the user of the product is
different than the purchaser, then
both the user and customer must be
satisfied, although the person who
pays gets priority.
Company philosophy
A company that seeks to satisfy the
customer by providing them value for
what they buy and the quality they
expect will get more repeat business,
referral business, and reduced
complaints and service expenses.
Some top companies not only provide
quality products, but they also give
extra service to make their customers
feel important and valued.
Internal customers
Within a company, a worker provides a
product or service to his or her
supervisors. If the person has any
influence on the wages the worker
receives, that person can be thought
of as an internal customer. A worker
should have the mind-set of satisfying

28. internal customers in order to keep
his or her job and to get a raise or
promotion.
Chain of customers
Often in a company, there is a chain
of customers, -each improving a
product and passing it along until it
is finally sold to the external
customer. Each worker must not only
seek to satisfy the immediate internal
customer, but he or she must look up
the chain to try to satisfy the
ultimate customer.
Satisfy the supplier
A second TQM principle is to satisfy
the supplier, which is the person or
organization from whom you are
purchasing goods or services.
External suppliers
A company must look to satisfy their
external suppliers by providing them
with clear instructions and
requirements and then paying them
fairly and on time.

29. It is only in the company's best
interest that its suppliers provide it
with quality goods or services, if the
company hopes to provide quality goods
or services to its external customers.
Internal suppliers
A supervisor must try to keep his or
her workers happy and productive by
providing good task instructions, the
tools they need to do their job and
good working conditions. The
supervisor must also reward the
workers with praise and good pay.
Get better work
The reason to do this is to get more
productivity out of the workers, as
well as to keep the good workers. An
effective supervisor with a good team
of workers will certainly satisfy his
or her internal customers.
Empower workers
One area of satisfying the internal
suppler is by empowering the workers.
This means to allow them to make
decisions on things that they can

30. control. This not only takes the
burden off the supervisor, but it also
motivates these internal suppliers to
do better work.
Continuous improvement
The third principle of TQM is
continuous improvement. You can never
be satisfied with the method used,
because there always can be
improvements. Certainly, the
competition is improving, so it is
very necessary to strive to keep ahead
of the game.
Working smarter, not harder
Some companies have tried to improve
by making employees work harder. This
may be counter-productive, especially
if the process itself is flawed. For
example, trying to increase worker
output on a defective machine may
result in more defective parts.
Examining the source of problems and
delays and then improving them is what
is needed. Often the process has
bottlenecks that are the real cause of
the problem. These must be removed.

31. Worker suggestions
Workers are often a source of
continuous improvements. They can
provide suggestions on how to improve
a process and eliminate waste or
unnecessary work.
Quality methods
There are also many quality methods,
such as just-in-time production,
variability reduction, and poka-yoke
that can improve processes and reduce
waste.
TQM and Six Sigma
The TQM concept was developed based on
the teachings of American management
consultants, including W. Edwards
Deming, Joseph M. Juran, and Armand V.
Feigenbaum. Originally, these
consultants had short-term success in
the United States. Managers in Japan,
however, embraced their ideas
enthusiastically and even named their
premier annual prize for manufacturing
excellence after Dr. Deming. Based on
Statisticial Process Control (SPC)
techniques, the Six Sigma management

32. strategy was developed in 1986 to
support Motorola’s drive towards
reducing defects by minimizing
variation in processes.
The main difference between TQM and
Six Sigma is the approach. At its
core, Total Quality Management (TQM)
is a management approach to long-term
success through continuous process
improvement and customer satisfaction.
In a TQM effort, all members of an
organization participate in improving
processes, products, services and the
culture in which they work. The
methods for implementing this approach
come from people such as Philip B.
Crosby, W. Edwards Deming, Armand V.
Feigenbaum, Kaoru Ishikawa and Joseph
M. Juran.
Exploring soft versus hard factors for
TQM implementation in small and
medium-sized enterprises
Purpose – This paper aims to rank the
emphasis placed on critical factors
and quality management principles that
determine the success of total quality
management (TQM) as it applies to

33. quality management system
implementation in small and medium-
sized enterprises (SMEs).
Design/methodology/approach – This
paper is a synthesis of the literature
on TQM implementation in SMEs
operating in a developing environment
and identifies critical factors. These
factors are prioritised according to
the frequency in which they appeared
by number of articles. The compliance
requirements of the ISO 9001:2000
standard is mapped to one or a
combination of quality management
principles (QMPs) on which the
standard is based. These principles
are grouped as soft and hard and
ranked in terms of the number of
compliance requirements they
represent.
Findings – The paper identifies
critical factors of TQM implementation
for SMEs operating in a developing
economy. Although exploratory in
nature, evidence shows that, while
researchers have placed more emphasis
on the ―soft‖ factors, the compliance

34. requirements of the ISO 9001:2000
standard stress more on the ―hard‖
factors.
Research limitations/implications –
The paper shows that the possibility
of enriching the theories and
practices of TQM implementation and
extending the knowledge and
applications of ―soft‖ and ―hard‖
factors need to be explored.
Contrasting the eight QMPs of ISO
9001:2000 with the evaluation criteria
of quality excellence awards needs to
be addressed.
Practical implications – This paper
reviews the relative importance of
―soft‖ and ―hard‖ factors, and relates
the QMPs and compliance requirements
of ISO 9001:2000 to TQM implementation
in SMEs. It identifies strengths and
weaknesses of the standard, and
provides a source of information for
top management of SMEs interested in
implementing a quality management
system.

35. Originality/value – The findings in
this paper link the compliance
requirements of ISO 9001:2000 to QMPs,
and point to areas that tend to be
least addressed by the ISO 9001:2000
standard. The paper also advocates a
holistic approach to safeguard proper
TQM implementation and continual
improvement of people, product and
processes in SMEs.
TQM and Performance for SMEs: Research Project
The concept of quality in general and Total Quality
Management (TQM) in particular has been the
subject of several marketing and management
research insofar as it is considered as a means to
understand and meet the expectations of consumers.
For Chin et al. 2001, TQM is an inclusive approach
whose aim is to pursue customer satisfaction.
This purpose has generated a growing interest in
various sectors of economy such as

36. manufacturing, services, Government and education
in different countries around the world.
Dear sir,
I am Abhinandan Kumar, student of production engineering, VIIthsem at Birla Institute of
Technology, Mesra, Rachi extension centre Patna.
Dear sir, I am now working on a project of motor-car at my college. Team of 5 students of my
batch and 3 faculties of our department are also working with me.
We are working on following topics:
1. How to increase efficiency of motor car?
2. Which one is best among diesel engine, petrol engine and CNG in all conduction including
efficiency, maintenance, economical, environmentally-friendly, user-friendly, ergonomic, etc.
3. Authentic design or attractive model of cars.
4.