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Introduction to Quality
TQM concept evolved in Japan - World war II
Edward Deming - use of statistical methods.
RM……………… …...
Quality movement in India
Quality movement in India
No competition - Public sector, one or two players
Top Management - sold, cost, awareness & inte...
Significance of LPG – World
L - Liberalization - Trade barriers
Removing license raj
Freeing Economy From Government Contr...
1991 LPG era …competition, car, Marketing concept,
customer is the God.
……………………….
6
Introduction to TQM cont…
Globalisation - Mindset change
 South Indian Companies - TVS,
Sundram Fasteners - China.
Ind...
“COMPETITION CAUSES PERFORMANCE”
8
Benefits of Quality efforts
Benefits of Quality efforts
 Increased Customer Satisfaction
 More efficient processes
 Higher productivity
 Lower cos...
Total Quality Management
Total Quality Management
 TQM is a Management Approach - originated -1950’s.
 Become more popular since early 1980’s.
 ...
TQM cont..
TQM is associated with ..doing right things right, first
time.
Method by which management and employees
invol...
WHAT IS QUALITY ?
What is Quality?
Juran (1974)…. “Fitness for use”
Crosby (1979) VP of International Telephone &
Telegraph (ITT)…
“Conforma...
Quality Cont…
Walter A Shewhart
Pioneer of Modern Quality Control
 “Founder of the control chart” (e.g. X-bar and R char...
Quality cont…
In ISO 9000 : a more definitive definition of quality is given.
“degree to which a set of inherent character...
Quality Cont…
Quality can be quantified as follows: Q =P / E
Where Q - Quality, P - Performance, E - Expectations.
Quality...
Quality Cont…
Excellence in everything.
Stakeholder Expectations
Customers - Product Quality
Employees - Career / Work Satisfaction
Owners - Investment Perform...
Evolution of Quality
1920’s - QC - Process control;
- Acceptance sampling
1930’s - Great depression after world war
- Defe...
New and old culture of Quality
Q Elements Prior to TQM With TQM
Definition Product oriented Customer
Decisions Short term ...
Requirements of - A good Quality process
A good Quality process
 Driving the business from customer needs
 Setting a clear vision which is deployed down
into coo...
Dimensions of quality
Dimensions of quality
Performance: Also called Functionality or Operationality.
It is the main operating characteristics o...
Dimensions of quality cont..
Conformance: The extent to which the product’s design and
operating characteristics satisfy t...
Principles of TQM
Management commitment
Customer Focus
Continuous Improvement
Employee Empowerment
Edwards Deming had
proposed fourteen principles
towards quality achievement.
These principles are summarized
as follows:
1. Create and Publish the Aims and Purposes of the Organization:
 Long range goals, resource allocation for innovation,
...
4. Stop Awarding Business Based on Price Alone:
End the practice of selecting the suppliers, based solely on
price.
 Pri...
6. Institute training on the job.
Each employee is to be trained in quality improvement skills,
communication skills, stat...
8. Drive out Fear, Create Trust, and Create a climate for Innovation:
 Fear is caused by lack of job security, performanc...
10. Eliminate slogans, exhortations and numerical targets for the
workforce:
Goals - achievable and the methods are known ...
12.Remove barriers that rob people of their right to pride of
workmanship;
Loss of pride in workmanship occurs in organiza...
14. Put everyone in the company to work to
accomplish the transformation.
Create a structure in top management that will
e...
Barriers to TQM implementation
Barriers to TQM implementation
Lack of Management commitment
Inability to change Organisation culture
Improper planning...
Quality Management
Quality Management - coordinated activities to direct and
control an
organization with regard to qualit...
Quality Management
Quality Planning: Planning process to meet the customer
requirements
Define Q. Policy, Objectives and r...
Strategic Planning to functional planning
Quality Audit
Quality Cost
Quality Cost
Cost incurred by the firm because of producing poor
quality products.
Cost associated with non achievement ...
Quality Cost
Appraisal cost
Inspection and Testing of incoming material, In-process
inspection, Final inspection,
Produc...
Quality Cost cont..
Internal Failure Costs
Scrap, Rework, Retest, Failure Analysis
Down time, Yield Losses.
 External ...
Benchmarking
Benchmarking
Concept of Benchmarking taken the new meaning since
1970s.
Companies compared the performance CY… LY
Paramete...
Benchmarking
Systematic method by which organisations can measure
themselves against the best in class org in order to ac...
Benchmarking
Reasons to Benchmark:
 Helps to set new goals and adopts the best practices
 Helps to develop the strengths...
Camp - 1989
Re-engineering
Reverse engineering
…Product Benchmarking (Reverse engineering)
Benchmarking process
Benchmarking process:
a) Identify what function is to be benchmarked
(Critical Success Factor - CSF)
…..PROCESS that causi...
Benchmarking – Process…
d) Analyse the data to arrive at the current performance gap.
e) Communicate the benchmark finding...
Benefits of Benchmarking:
Company will become competitive
Customer requirements can be taken care of
Helps in continuou...
Case Study - Tata Indica
 December 1998 – created history – within seven days of its
launch, an astonishing 1,15,000 orde...
Indian Railways
Xerox – Case analysis
Xerox - Case analysis
 Xerox 914 - First plain copier - 1959….New industry
 During 1960’s high growth….selling all it co...
Xerox –Case analysis
 Rework, scrap, excessive inspection, lost business costing more than
20 per cent of revenue, Compar...
Theodore Roosevelt – (26th President of the United States, 1901 –1909)
Continuous Process Improvement
Total quality management
Total quality management
Total quality management
Total quality management
Total quality management
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Total quality management

TQM

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Total quality management

  1. 1. Introduction to Quality TQM concept evolved in Japan - World war II Edward Deming - use of statistical methods. RM……………… ………………….Consumer research TQM set a new trend in the Japanese industry by shifting the management’s focus from profits to quality. During 1980’s American….. Ford Motors, Xerox. Mfu Companies - Industrial Revolution.
  2. 2. Quality movement in India
  3. 3. Quality movement in India No competition - Public sector, one or two players Top Management - sold, cost, awareness & interest level "let's stay home, let's copy or imitate, and let's compete on price". 1991 -
  4. 4. Significance of LPG – World L - Liberalization - Trade barriers Removing license raj Freeing Economy From Government Control 350 %.............20% P - Privatization - Reducing Government stake G – Globalization (Integrating the economy of a country with the world economy. WTO, Quota System) “One world – One Market” (Single Market - Borderless World). 5
  5. 5. 1991 LPG era …competition, car, Marketing concept, customer is the God. ………………………. 6
  6. 6. Introduction to TQM cont… Globalisation - Mindset change  South Indian Companies - TVS, Sundram Fasteners - China. Indian brands - global market Pharma, Six sigma, Tata steel Quality awards - Deming Award To succeed and to Survival …… 7
  7. 7. “COMPETITION CAUSES PERFORMANCE” 8
  8. 8. Benefits of Quality efforts
  9. 9. Benefits of Quality efforts  Increased Customer Satisfaction  More efficient processes  Higher productivity  Lower costs  Increased market share  Higher Profits  High employees morale.
  10. 10. Total Quality Management
  11. 11. Total Quality Management  TQM is a Management Approach - originated -1950’s.  Become more popular since early 1980’s.  Description of the culture, attitude of the Organisation.  Act of managing the whole organisation, its suppliers and buyers to achieve excellence. Union of Japanese Scientists and Engineers (JUSE) Defines TQM: “A set of systemic activities carried out by the entire organisation to effectively and efficiently achieve company objectives to provide products and services with a level of quality that satisfies customers, at the appropriate time and price”.
  12. 12. TQM cont.. TQM is associated with ..doing right things right, first time. Method by which management and employees involved in the continuous improvement.
  13. 13. WHAT IS QUALITY ?
  14. 14. What is Quality? Juran (1974)…. “Fitness for use” Crosby (1979) VP of International Telephone & Telegraph (ITT)… “Conformance to requirements or specifications” Deming(1900 – 1993) statistician worked in Western Electric company…. “Quality should be aimed at the needs of the consumer, present and future”.
  15. 15. Quality Cont… Walter A Shewhart Pioneer of Modern Quality Control  “Founder of the control chart” (e.g. X-bar and R chart).  Originator of the plan-do-check-act cycle. (PDCA Cycle)  Perhaps the first to successfully integrate statistics, Engineering, and economics. defined quality Objective quality: Quality of a thing independent of people. Subjective quality: Quality is relative to how people perceive it. (value) The term quality is perceived differently by different people.
  16. 16. Quality cont… In ISO 9000 : a more definitive definition of quality is given. “degree to which a set of inherent characteristics fulfills Requirements”. Degree - quality can be used with adjectives such as poor, good and excellent. Inherent - something, especially as a permanent characteristics. Characteristics can be quantitative or qualitative. Requirement is a need or expectation that is stated by customers, and other interested parties.
  17. 17. Quality Cont… Quality can be quantified as follows: Q =P / E Where Q - Quality, P - Performance, E - Expectations. Quality, therefore is  Defined by the customers,  A measure of achievement of customer satisfaction  Safety, effective packaging,  On - time delivery,  Efficient technical service, caring for the customer’s feedback.  Keeping one’s word  Ensuring no defects, Utility to the society.  Quality is both a user oriented and a production oriented expression.
  18. 18. Quality Cont… Excellence in everything.
  19. 19. Stakeholder Expectations Customers - Product Quality Employees - Career / Work Satisfaction Owners - Investment Performance  Vendors - Continuing Business Opportunity.
  20. 20. Evolution of Quality 1920’s - QC - Process control; - Acceptance sampling 1930’s - Great depression after world war - Defense role in quality 1950’s - TQC, - Japanese QC 1960’s - QA in new product development 1970’s - Worldwide management of Quality 1980’s - Quality systems and standards 1990’s - Quality as a main winning point 2000’s - Continual improvement.
  21. 21. New and old culture of Quality Q Elements Prior to TQM With TQM Definition Product oriented Customer Decisions Short term Long term Responsibility Quality control Every one Problem solving Managers Teams Procurement Price Life cycle cost & partnership Emphasis Detection Prevention Manager’s Role Plan, assign Delegate, coach, facilitate and mentor
  22. 22. Requirements of - A good Quality process
  23. 23. A good Quality process  Driving the business from customer needs  Setting a clear vision which is deployed down into coordinated action.  Managing processes to their optimal capability Using the contribution of every person to the full  Managing well beyond company boundaries.  Developing workers to manage and mangers to lead  Becoming faster, leaner and more responsive to market opportunities.
  24. 24. Dimensions of quality
  25. 25. Dimensions of quality Performance: Also called Functionality or Operationality. It is the main operating characteristics of a product. Example: Crystal clear picture, for clear sound etc., in a TV set. Enhancement or Additional Features: It represents the additional features supplementing the product’s basic function. Example: Auto power off when not in use, Telephone directory storage, In built videogames, child lock facility etc., Reliability: Probability that a product is performing its intended function over its intended life and under the stated conditions.
  26. 26. Dimensions of quality cont.. Conformance: The extent to which the product’s design and operating characteristics satisfy the pre . determined standards. Durability: Measure of products. useful life, Serviceability: Time consumed in servicing, Courtesy, Competence and ease of repair or reconditioning of a product. Aesthetics: Should appeal to senses. It is Human response to a product . how it looks, feels, sounds, tastes or smells.. Reputation: Past performance, Brand image
  27. 27. Principles of TQM Management commitment Customer Focus Continuous Improvement Employee Empowerment
  28. 28. Edwards Deming had proposed fourteen principles towards quality achievement. These principles are summarized as follows:
  29. 29. 1. Create and Publish the Aims and Purposes of the Organization:  Long range goals, resource allocation for innovation,  R&D, training and continuous education for the employees. 2. Adopt new philosophy :  Focus on the customer satisfaction,  prevention of non - conformance, rather than detection and correction, 3. Understand the Purpose of Inspection:  Eliminate the need for mass inspection by building quality into the product.  Mass inspection is costly and unreliable.  Mass inspection is managing for failure and Defect prevention is managing for success  To improve the process and reduce its cost, use of statistical techniques should be adopted.
  30. 30. 4. Stop Awarding Business Based on Price Alone: End the practice of selecting the suppliers, based solely on price.  Price is meaningless, without quality.  Minimize total cost by working with a single supplier, thereby developing a long term ethical and economical relationship, loyalty and trust with the suppliers. 5. Improve constantly and forever - the system of production and service to improve quality and productivity and to decrease cost.
  31. 31. 6. Institute training on the job. Each employee is to be trained in quality improvement skills, communication skills, statistical methods and problem solving methods. Management must allocate resource to train employees to perform their jobs in the best possible manner. 7. Teach and Institute leadership: Improving Supervision is Management’s responsibility. Management must provide supervisors with training on analytical methods. Instead of focusing on a negative, fault-finding atmosphere, Supervisors should create a positive, supportive climate. All communications must be clear from top management to supervisors to operators.
  32. 32. 8. Drive out Fear, Create Trust, and Create a climate for Innovation:  Fear is caused by lack of job security, performance appraisal by superiors, ignorance of organizational goals, poor supervision and poor knowledge of the job.  All the employees are to be treated with dignity - Only then, they can provide ideas and act upon for improvement.  Management must encourage open, effective communication and team work.  Management can begin by providing workers with adequate training, good supervision, and proper tools to do the job. 9. Optimize the Efforts of Teams and groups: Break down barriers between departments, research, design, sales and production . must work together to foresee problems in production .
  33. 33. 10. Eliminate slogans, exhortations and numerical targets for the workforce: Goals - achievable and the methods are known and made available, to all the employees. Improvements in the process cannot be made unless the tools and methods are available. 11. Eliminate quotas or work standards:  Quota and work standards give importance to quantity, rather than quality.  They encourage poor workmanship in order to meet their quotas  Instead of fixing quantity, the management must concentrate on the methods for improvement and quality.  Statistical method of Process Control may replace Quotas.
  34. 34. 12.Remove barriers that rob people of their right to pride of workmanship; Loss of pride in workmanship occurs in organizations, because of the following reasons:  Workers - unaware how to relate their efforts to the organization’s missions.  They are blamed for system failure.  Poor designs leading to waste of product or service.  Inadequate training.  Punitive supervision.  Inadequate or faulty equipments and tools provided for performing the job. When workers feel proud of their work, they will grow fully and successfully, in their job and out of their job. 13.Encourage Education and Self-Improvement
  35. 35. 14. Put everyone in the company to work to accomplish the transformation. Create a structure in top management that will emphasize the preceding thirteen points every day. The principles may be aptly called, “codes of ethics for Quality”.
  36. 36. Barriers to TQM implementation
  37. 37. Barriers to TQM implementation Lack of Management commitment Inability to change Organisation culture Improper planning Inadequate use of empowerment Lack of continuous training and education Paying inadequate attention to internal and external customers. Failure to continually improve.
  38. 38. Quality Management Quality Management - coordinated activities to direct and control an organization with regard to quality QM = QP + QA + QC + QI Quality Plan-focuses on setting quality objectives Quality Assurance- providing confidence that quality requirements will be fulfilled Quality Control - focused on fulfilling quality requirements Quality Improvement - focused on increasing the ability to fulfill quality requirements.
  39. 39. Quality Management Quality Planning: Planning process to meet the customer requirements Define Q. Policy, Objectives and requirements. Statement describes an org commitment to Q. Guides everyone in the org. Plan about the resources. Identify your customer, Determine their needs, Translate them into your language, Develop a product. Juran’s Q Planning..
  40. 40. Strategic Planning to functional planning
  41. 41. Quality Audit
  42. 42. Quality Cost
  43. 43. Quality Cost Cost incurred by the firm because of producing poor quality products. Cost associated with non achievement of product as defined by the requirements. Any cost associated with correcting failure or reworking the finished product or wastage go into Quality costs. A reduction in Quality cost will lead to increased profit.
  44. 44. Quality Cost Appraisal cost Inspection and Testing of incoming material, In-process inspection, Final inspection, Product Inspection and Testing Maintaining accuracy of test equipment. Prevention Cost Quality Planning & Inspection, New Products Review, Product Process Design Process Control, Quality training, TQM Failure cost Internal Failure Cost External Failure cost.
  45. 45. Quality Cost cont.. Internal Failure Costs Scrap, Rework, Retest, Failure Analysis Down time, Yield Losses.  External Failure cost Complaint Adjustment, Returned Product Warranty Charges, Liability Costs, Indirect Costs.
  46. 46. Benchmarking
  47. 47. Benchmarking Concept of Benchmarking taken the new meaning since 1970s. Companies compared the performance CY… LY Parameters like cost, profit, sales volume, expenses, etc…..Target “The process of identifying, understanding, and adapting outstanding practices and process from organisations anywhere in the world to an organisation to improve its performance” …….Systematic and continuous measurement process………
  48. 48. Benchmarking Systematic method by which organisations can measure themselves against the best in class org in order to achieve the best of the best. It is the search for the industry best practices that lead to superior performance. BM is a tool generally used for continuous improvement. It utilizes a systematic process for improving the performance of product/service, process or an organization as a whole by continuously identifying, understanding, and adapting best practices that are found either inside or outside the organization.
  49. 49. Benchmarking Reasons to Benchmark:  Helps to set new goals and adopts the best practices  Helps to develop the strengths and reduce the weakness  Benchmarking is time and cost efficient Types of Benchmarking: a)Internal b)Competitive c)Functional or process d)Generic benchmarking
  50. 50. Camp - 1989
  51. 51. Re-engineering Reverse engineering …Product Benchmarking (Reverse engineering)
  52. 52. Benchmarking process
  53. 53. Benchmarking process: a) Identify what function is to be benchmarked (Critical Success Factor - CSF) …..PROCESS that causing most trouble, factors that are not performing up to the satisfaction level, critical factors that result in customer satisfaction, areas in which more competition, Process or function that would help to achieve Competitive Advantage. b) Identify best-in-class company c) Identify the data that to be collected
  54. 54. Benchmarking – Process… d) Analyse the data to arrive at the current performance gap. e) Communicate the benchmark findings to the employees f) Establish functional goals to achieve objectives g) Develop action plan, implement and monitor the progress. Examples:  Toyota, ITC, Amul, Arvind, Gillette, Intel, Fevicol,  Mumbai Dabbawallahs,  Sachet.  Tata Indica – “More car per car”
  55. 55. Benefits of Benchmarking: Company will become competitive Customer requirements can be taken care of Helps in continuous improvement Understanding the best industry practices
  56. 56. Case Study - Tata Indica  December 1998 – created history – within seven days of its launch, an astonishing 1,15,000 orders were booked by the company.  It was positioned as a ‘More car per car’  Maruti 800 as an inadequate car.  Prospects were car owners who had a 3-5 year old Maruti 800.
  57. 57. Indian Railways
  58. 58. Xerox – Case analysis
  59. 59. Xerox - Case analysis  Xerox 914 - First plain copier - 1959….New industry  During 1960’s high growth….selling all it could produce  CA.. STRONG PATENT, GROWING MARKET, LITTLE COMPETITION  No focus on customer  During 1970’s IBM, Kodak ,,,, several Japanese companies  High Q Low Volume copiers ……..ignored  Federal Trade commission accused Xerox ..illegally monopolizing the copier business 1700 patents to competitors.  1980 market share fell down by less than 50 per cent. Company would not survive
  60. 60. Xerox –Case analysis  Rework, scrap, excessive inspection, lost business costing more than 20 per cent of revenue, Comparing with competition  In 1983 company president David Kearns …need for long range planning  Team……Quality strategy for Xerox  Benchmarked more than 200 process Customer satisfaction was important  Malcolm Baldrige National Quality award  1989 David Quality is A Race without Finish Line………
  61. 61. Theodore Roosevelt – (26th President of the United States, 1901 –1909)
  62. 62. Continuous Process Improvement

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