1.
PRODUCTIVITY
&
TQM
UNIT 3

2.
A relationship
between output
generated and
input usedA critical
determinant
of cost
efficiency
A method to
determine
the capacity
utilization
A key source
of economic
growth and
competiveness
Determines what
we produce and
what we have to
spent to produce
Output
Input
WHAT
IS
PRODUCTIVITY

3.
MODESOF CALCULATINGPRODUCTIVITY
A. TOTAL FACTOR PRODUCTIVITY
Productivity = Quantum of Output Produced
Quantum of Input Used
B. INDIVIDUAL FACTOR PRODUCTIVITY
(a) Capital Productivity = Output
Capital Employed
(b) Labour Productivity = Output
Man-Hours Worked

4.
(c)Material Productivity = Output
Raw Material Consumed
(d)Machines Productivity = Output
Machine-Hours Worked
(e) Land Productivity = Output
Area of Land Used

5.
“Qualityisaboutmeetingtheneedsandexpectations
ofcustomers”
Quality management is the act of:
• Overseeing all activities and tasks
needed to maintain a desiredlevel of
excellence.
• Determination of a quality policy
• Creating and implementing quality
planning and assurance
• Quality control and quality improvement

6.
Structural characteristics
Sensory characteristics
Time-oriented characteristics
Ethical characteristics
Variables
Nonconformity
Attribute
Defect
Specification
Standard
Quality of design
Quality of conformance
Quality of performance
CHARACTERISTICS

7.
Importanceof
Quality
Management

8.
Factors
Affecting
Quality
Market
Money
Management
MenMotivation
Machines
Material

9.
PHILOSOPHIES REGARDING QUALITY
– Quality is considered as a ‘never ending’ improvement
– Success of TQM mainly depends on the achievement of internal as well
as external customer satisfaction
– Continuously improve quality as per the expectations of the customers
Design Conformance
Better
performance
Quality

10.
TOTALQUALITY
MANAGEMENT
Focusing on
customers
satisfaction
Provides best quality
product at lowest
possible price
Prevention of
defects, target is
zero defects

11.
TOTAL
Responsibility for
achieving Quality
rests with everyone
Recognises the
necessity to develop
processes across
the business
QUALITY
Prime task is to
understand the
needs of the
customer
This will retain
current customers
and assist in
acquiring new ones
MANAGEMENT
Top management
lead to achieve
quality for
customers
Introducing and
maintaining a
continuous
improvement culture

12.
Customer – oriented Philosophy
Continuous Process
Defect – Free Approach
Commitments from top management
Employee Involvement
Synergy in Teamwork
Training at all Levels
Recognition and rewards
TQM techniques
FEATURESOFTQM

13.
Focus on
Customers
Involvement
of
Employees
Improvement
of
Processes
Creation of
quality
management
envtDevelopment
of
Teamwork
Practice of
quality
control Tool &
Techniques
Bench -
marking
Focus on
Supplier
Relationship
8 PILLARS

14.
– The “cost of quality” isn’t the price of creating a
quality product or service. It’s the cost of NOT
creating a quality product or service
– Every time work is redone, the cost of quality
increases
– Cost of quality refers to the costs that are incurred
to prevent, detect and remove defects from
products
COSTOFQUALITY

15.
Cost of Quality
Cost of
Poor
Quality
Internal
Failure
Costs
External
Failure
Cost
Cost of
Good
Quality
Prevention
Cost
Appraisal
Cost

16.
DEMINGANDHISCONTRIBUTION
William Edwards Deming (1900-1993)
– Leading management thinker in the field of quality
– He was a statistician and business consultant
– His methods helped Hasten Japan’s recovery after the Second
World War
– Credited with having the greatest influence on the quality
management
– Quality philosophy focused on reducing uncertainty and
variability

17.
14PRINCIPLESBYDEMING’s
1 • Create purpose for improvement
2
• Adopt the new philosophy
3
• Cease depending on inspection to achieve quality
4
• Work with one supplier to reduce cost
5
• Continuous improvement
6
• On-The-Job training
7
• Leadership
8 • Drive out fear
9 • Break down silos
10 • No slogans
11 • No quotas or numerical goals
12 • Remove annual ratings or merit system
13
• Institute education and self-improvement
programs
14
• Involve all workers in the transformation

18.
JURAN’S PHILOSOPHY
– Defines quality as fitness for use in terms of design,
conformance, availability, safetyand field use
– This concept incorporates the view point of customer
– Juran’s philosophy involves adapting the existing
management system rather than instituting an entirely
new system
– He believes that 80% or more of the defects produced by
a system are management controllable not operator
controllable

19.
o Establish quality goals
o Identify the customers
o Determine the
customer’s needs
o Develop product
features
o Develop processes
o Establish process
controls and transfer
the resulting plans to the
operating forces
o Evaluate actual
quality
performance
o Compare actual
performance to
quality goals
o Locate deviations
and their cause and
take corrective
actions
o Establish the
infrastructure
o Identify the specific
needs for improvement
o For each project
establish a project team
o Provide the resource,
motivation, and training
needed by the team
QUALITY
PLANNING
QUALITY
IMPROVEMENT
QUALITY
CONTROL
JURANS’S TRILOGY

20.
JURAN’S 10-POINT PROGRAM
1)Build awareness
of opportunity
to improve
2) Set goals for
improvement
3) Organise to
reach goals
4)Provide
training
5) Carryout
projects to
solve problem
6) Report
progress
7) Give
recognition
8) Communicate
results
9) Keeps core
10)Maintain
momentum

21.
PHILIPCROSBYPHILOSOPHY
– “Doing It Right the First Time”, was his answer to the quality
crisis
– He defined quality as full and perfect conformance to the
customer’s requirements
– There is no such thing as quality problem
– The only performance measurement is the cost of quality, which
is the expense of non-conformance
– The only performance standard is “Zero Defects”

22.
14STEPS BY PHILIP CROSBY
• Management CommitmentStep 1
• Quality Improvement TeamStep 2
• Quality MeasurementStep 3
• Cost of Quality EvaluationStep 4
• Quality AwarenessStep 5
• Corrective ActionStep 6
• Establish an Ad Hoc Committee
for the Zero Defects Program
Step 7
• Supervisor TrainingStep 8
• Zero Defects DayStep 9
• Goal SettingStep 10
• Error Cause RemovalStep 11
• RecognitionStep 12
• Quality CouncilsStep 13
• Do It Over AgainStep 14

23.
Gradual Process
5S
Wide Applicability
Less Resistance
Team Building
Less Capital Investment
A Learning Experience
Far – reaching Implications
Quality Control Techniques
FEATURES

24.
Define the
Problem
Define Continuous
Improvement
Objectives
Convert Objectives
into Action
Assign
Teams
Define the
Process
Define the Sources
of Variability
Minimise the
Variability
Implement the
Project and Follow-
up
PROCESS

25.
PRODUCT QUALITY
It isthevalueofa producttocustomers
Performance
Features
Reliability
Conformance
Durability
Serviceability
Aesthetics
Perceived Quality

26.
It measures the
customer perception
of the quality of a
service experience to
customer expectations
for that experience
SERVICEQUALITY
Reliability
Responsiveness
Assurances
Empathy
Tangibles

27.
GAP
Customers’ expectations VS Management
perceptions
Management perceptions VS Service
specifications
Service specifications VS Service delivery
Service delivery VS External communication
The Discrepancy between Customer expectations
and their perceptions to the Service delivered
1
2
3
4
5

28.
QUALITYASSURANCE
– All those planned or systematic actions necessary
to provide adequate confidencethat a product or
service will satisfygiven requirementfor quality
– The objective of quality assuranceis to constantly
monitor the effectiveness of the quality
philosophyof the company

29.
ELEMENTSOF
A QUALITY
ASSURANCE
SYSTEM

30.
QUALITYCIRCLE
– A Quality Circle is a participation management
technique to manage and improve the quality of the
entire organization.
– Quality circles are made of groups of employees
(normally 6 to 12) who perform similar tasks or
share an area of responsibility

31.
Goals
Membership
Organisation
Scope of Problem
Frequency of Meeting
Training and Development
Emphasis on Group Effort
Rewards
Operational cycle
CHARACTERISTICSOF QUALITYCIRCLES

32.
Finding the
problem
Selecting the
Problem
Analysing the
Problem
Locating the
Causes
Collecting and
Analysing the
Data
Generating
Alternative
solutions
Presentation of
the Management
Management
Scrutiny and
Approval
Execution and
Follow-up
PROCESS

33.
INTRODUCTIONTO
ISHIKAWAFISHBONE
DIAGRAM
akaCAUSEANDEFFECT
DIAGTRAM
▪It is named for its resemblance to
a fish backbone and ribs
▪A visualizing tool for categorizing
the potential causes of a problem
in order to identify its root cause

34.
Adopts simple
methodology
Helps determine
the root cause
of problem/
quality
Helps collect
data for
maximal
improvementShows
possible
causes of
variation
Encourages
group
participation
Brainstorming
sessions
ADVANTAGES

35.
Shresti Ande - 03
Sapna Kanojia – 18
Prachi Manik – 22
Vignesh Mohan – 24
Premkumar Raikar – 29
Devangi Rane – 30
Preet Rathod – 31
Prathamesh Sarode – 33
Sakshi Sharma – 37
Manav Thapar – 43
Shivani Thapar – 44
Vishwanathan Pillai – 46
Anchita Betrabet – 50
Raghav Bhamri – 55
Vaibhav Bhatt – 56
Karan Jain - 62
Prathamesh Malunjkar – 66
Muthupandi Nadar – 69
Nikhil Kunder – 72
Akhil Nischal – 73
Sabitha Sailappan – 81
Nami Seghal – 82
PRESENTERS