TQM concept and quality cost

1. TOTAL QUALITY
MANAGEMENT
O PRESENTED TO:-
Dr. MINNI SINGH
O PRESENTED BY :-
SUDHA
CHIB
M.Sc (h)BT
2
130181107

2. QUALITY
O Quality is conformance to requirements or
standards or specifications
or
O According to ISO defination given in
1986:-
“Quality is the toatality of features and
characterstics of a product or service that
bears in its ability to satisfy stated or
implied needs”

3. QUALITY
PRODUCT
QUALITY
SERVICE
QUALITY

4. CUSTOMER
NEEDS
STATED
NEEDS
IMPLIED
NEEDS

5. QUALITY CHARACTERSTICS
O 8 dimentions of product quality
management can be used at a strategic
level to analyze quality characteristics
O The concept was defined by David Garvin
in 1986

7. CLASSIFICATION
OF QUALITY
QUALITY OF
DESIGN
QUALITY OF
CONFORMANCE

8. O QUALITY OF DESIGN:- the quality which the
producer is intended to offer to the customer
it is usually indicated by completeness of
drawings catalogues etc
O QUALITY OF CONFORMANCE:- it’s the level of
quality of product actually produced and delivered
as per the specifications or design

9. TOTAL QUALITY
MANAGEMENT
O TQM can be defined as process of achieving
sustaining quality improvement it is
motivational techniques invoving :-
O Commitment
O Communication
O Culture change
O Leadership
O involvement

10. ACHIEVED BY
QUALITY ASSURANCE
QUALITY CONTROL
QUALITY MANAGEMENT SYSTEM
TOTAL QUALITY MANAGEMENT

11. O QUALITY ASSURANCE:- It is strategic
management function concerned with
establishment of policies , standards and
systems for the maintanance of quality
O QUALITY CONTROL:- Concerned with the
implementation of quality assurance
programmes

12. PRINCIPLES OF TQM
O Management commitment:-

13. O Employee enpowerment
O Continuous improvement
O Customer focus

15. COST AND ECONOMY OF
QUALITY
O According to ISO 8402 quality cost is:-
The expenditure incurred in defect
prevention and appraisal activities plus the
losses due to internal external failure
or
Simply cost of quality (COQ) equals to the
cost of conformance (COC) plus the cost of
non conformance (CONC)
COQ = COC + CONC

16. BENEFITS OF MEASURING
QUALITY COST
O Increased opportunity to make objective
buisness decisions based on quantitative data
O The identification and prioritisation of areas
and aspects of the buisness requiring quality
improvement and cost reduction
O To compare the performance of departments
and processes
O An increase in the focus of management on
quality and quality improvement as an integral
part of management responsibilty

17. COSTS
FAILURE
COST
INTERNAL
FAILURE
EXTERNAL
FAILURE
APPRAISAL
COST
PREVENTION
COST

18. PREVENTION COST
O Cost associated with actions taken to
investigate , prevent or reduce defects
O It include:-
O Implementing a documental quality
system
O Providing management procedure
O Providing work instructions
O Calibrating intruments
O Staff training
O Taking corrective actions

19. APPRAISAL COSTS
O Cost associated with assessing the levels
of quality achieved
O It includes :-
O Cost of confirming that the raw material,
process, product are in compliance with
specification
O Corrective action
O Indirect costs

20. FAILURE
COST
INTERNAL
FAILURE
COST
EXTERNAL
FAILURE
COST

21. INTERNAL FAILURE COST
O Cost arising within the manufacturing
organisation
O It include:-
O Downgraded product costs
O Reworked product costs
O Scrapped product costs
O Associated costs

22. EXTERNAL FAILURE COST
O cost arising outside the manufacturing
organization
O It includes:-
O Rejection costs
O Replacement costs
O Customer / consumer service costs
O Liability costs

23. REFERENCES
O Total quality management by Dr. K.C Arora
O Quality management systems for the food
industry
O http://www.isixsigma.com/methodology/total-quality-
management-tqm/introduction-and-implementation-
total-quality-management-tqm/
O http://totalqualitymanagement.wordpress.com/
2008/09/12/cost-of-quality/
O http://cc.sjtu.edu.cn/G2S/eWebEditor/uploadfil
e/20130427091849944.pdf