2. UNIT I
Definitions – TQM framework, benefits, awareness
and obstacles. Quality – vision, mission and policy
statements. Customer Focus – customer perception
of quality, Translating needs into requirements,
customer retention. Dimensions of product and
service quality. Cost of quality.
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4. QUALITY: DEFINITIONS
(CONCISE OXFORD DICTIONARY,
1979)
Degree of Excellence
Faculty, Skill, Accomplishment
High rank or social standing
(logic) Being affirmative or negative
Distinctive character (of sound, voice etc.)
Concerned with maintenance of
high quality (quality control)
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The fitness for use or purpose at the
most economical level
MEANING OF QUALITY
5. QUALITY: DEFINITION
1.Quality is a predictable degree of uniformity and
depend ability, at low cost and suited to the market.-
Deming
2. Quality is fitness for use.-Juran
3. Quality is conformance to requirements-Crosby
4.Quality is the (minimum) loss imparted by a product to
society from the time the product is shipped. -
Taguchi
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6. 5. Quality is in its essence, a way of managing the
organization. – Feigenbaum
6.Quality is correcting and preventing loss , not living
with loss. – Hoshin
7. The university accepted definition of quality which
is provided by ISO, is as follows “Quality is the
totality of characteristics of an entity that bear
on its ability to satisfy stated and implied
needs”.- ISO
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7. QUALITY CAN BE QUANTIFIED AS
FOLLOWS:
Q = P / E
Q=Quality
P=Performance
E=Expectations
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9. KEY WORDS
1. product - a product is the output of any process.
(goods and services)
2. Product features – quality of design
3. Customer - A customer is anyone who receives or
is affected by the product or process.(external
customer and internal customers)
4. Customer satisfaction – is a state of affairs in
which customers feel that their expectations have
been met by the product features.
5. Customer dissatisfaction – is a state of affairs in
which deficiencies (in goods or service) result in
customer annoyance, complaints, claims, and so
on.
6. Deficiencies – quality of conformance
(errors,defects,failures)
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17. TQM
Total – Made up of whole
Quality – Degree of Excellence of product
Management – Act, art or manner of handling
POSDCORB
Definition
“TQM is the management approach of an
organization, centered on quality, based on the
participation of all its members and aiming, at
long term success through customer satisfaction,
and benefits of all members of the organization
and to society.” - ISO
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18. CHARACTERISTICS OF TQM
1. TQM is a customer oriented
2. TQM required a long term commitment for
continuous improvement of all processes.
3. TQM is a teamwork.
4. TQM requires the leadership of top management
and continuous involvement
5. TQM is a strategy for continuous improving
performing at all levels and in all areas of
responsibility.
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19. BASIC CONCEPTS OF TQM
Top management Commitment
Focus on the customer
Effective involvement and utilization of the
entire work force.
Continuous improvement.
Treating suppliers as partners.
Establish performance measures for the
processes.
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20. ELEMENTS / FRAMEWORK OF TQM
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21. THREE ELEMENTS OF TQM
The philosophical elements of TQM stress the
operation of the company using quality as the
integrating element.
The Generic Tools consists of various
statistical process control(SPC) methods that are
used for problem solving and continuous
improvement by quality teams.
Tools of the QC department consists of
statistical quality control (SQC) methods such as
sampling plan, process capability and taguchi
methods
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23. HISTORICAL REVIEW OF TQM
Time Events
Prior 20th
century Quality is an art
1900 –F.Taylor The scientific approach to
management resulting .
(standardization, inspection and
supervision)
1930 – Shewart Statistical Beginnings and study
of quality control.
Late 1930 Quality standards and
approaches are introduces in
france and japan
1942 Concepts of acceptance sampling
revised
1944 Dodge and deming carried out
seminar research on acceptance
sampling
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24. Time Events
1945 Founding of the japan standard
association
1946 Founding of the ASQC (american
society for quality control)
1950 Visit of deming in japan at the
invitation of K.Ishikawa
1951 Quality assurance increasingly
accepted
1954 TQC in Japan by Feigenbaun
and juran – Book Published 1956
1957 Founding of European
organization for the control of
quality
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25. AFTER 1960
Time Events
1961 The Martin Co in USA
introduces the Zero-defects
‘approach’.
1962 Quality Circles are started in
japan
1964 Ishikawa publishes book on
Quality management
1970 Ishikawa publishes the book on
the basis of quality circles and
the concept of total quality is
affirmed and devised in Japanese
industries.
1970-1980 Just in Time
1980 + Growth of economic based on
quality control information
software packages
1990+ The growth of process
optimization
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27. BARRIERS / AWARENESS AND OBSTACLES OF
TQM
Lack of management commitment
Lack of faith in and support to TQM activities among
management personnel
Failure to appreciate TQM as a cultural revolution other
words, inability to change organizational culture
Misunderstanding about the concept of TQM
Improper planning
Lack of employee commitments
Lack of effective communication
Lack of interest or incompetence of leaders
Ineffective measurement techniques and lack of access to
data and results
Non application of proper tools and techniques
Inadequate use of empowerment and team work
Delay or non implementation of quality improvement
team’s recommendation
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29. QUALITY STATEMENT
Quality statement are established by a quality
council to provide overall directions for achieving
the total quality culture.
The three elements of Quality Statements are
Vision statement – Desired future state of
organisation
Mission Statement – what business we are in
Quality policy statement - commitment to
customer
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30. VISION
The vision statement is a short declaration of
what an organization aspires to be tomorrow
Vision statement should define the benefits a
customer, an employee, a shareholder, or society
at large can expect from the organisation.
Example : “ To be the leading consumer battery
company in the world” – Duracell
International
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Product type
Batteries and Smart
Power Systems
Owner Berkshire Hathaway
Country United States
Introduced 1964
32. MISSION
The mission statement should clarify the
organization's purpose or reason for existence
The mission statement answers the following
questions: who we are ? who are the customers?
What we do? And how we do it?
Example : “The Ritz-Carlton hotel is a place
where the genuine care and comfort of our guests
is our highest mission” – Ritz-Carlton Hotel
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33. QUALITY POLICY STATEMENT
The Quality policy is a guide for everyone in the
organization as to how they provide products and
service to the customers.
It is used as a guide to managerial action.
Example:” Xerox is a quality company. Quality is
the basic business principle for Xerox. Quality
means providing our external and internal
customers with innovative products and services
that fully satisfy their requirements. Quality is
the job of every employee.” – Xerox
Corporation
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34. CUSTOMER FOCUS
Who are Customer ?
1. The most important people in the business
2. Not dependent on the orgn
3. People who come with their needs and jobs
4. Doing favour when they seek business and not
vice versa
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35. CUSTOMER SATISFACTION
1. ‘The customer is king’.
2. ‘Quality is what customer wants’.
3. ‘Quality is a measure of customer
satisfaction’.
Therefore it is essential that
every employee in the organization
understands the importance of the
customer.
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38. Internal customer
The customer inside the company are called internal
customers.
1. Flow of work
2. Product and service in the orgn
3. Each department
External customer
The customer outside the company are called external
customers.
1. Purchaser
2. End User / ultimate customer
3. Merchants
4. Processors
5. Suppliers
6. Potential customers
7. Hidden customers
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39. CUSTOMER PERCEPTION OF
QUALITY
Quality is what customer perceives it to be. However as the
customer go on changing their needs, the quality level are
to be improved continuously to meet the customers
demand.
An American Society for Quality (ASQ) survey ranked the
customer perceptions in the following order
1. Performance
a) Availability
b) Reliability
c) Maintainability
2. Features
3. Service
4. Warranty
5. Price
6. Reputation
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BUY?
40. FACTORS INFLUENCING CUSTOMERS
PERCEPTION OF QUALITY
Before purchase At point of
purchase
After purchase
Company's brand
name and image
Performance
specifications
Ease of installation
and use
Previous experience Comments of sales
people
Handling of repairs,
claims, warranty
Opinions of friends Warranty provisions Spare parts
availability
Store reputation Service programs Service effectiveness
Published test
results
Support programs Reliability
Advertised price fro
performance
Quoted price for
performance
Comparative
performance
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41. IDENTIFYING CUSTOMER NEEDS
Customer surveys focus groups, and market
research programs and studies.
Routine communications, such as sales and
service calls and reports, management reviews,
house publications
Customer meetings
User inference for the end user
Information on competitors' products
Government or independent laboratory data
Employee with special knowledge of the customer
Personal visits to customer locations
Personal experience dealing with the customer
and the product.
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42. TRANSLATING NEEDS INTO
REQUIREMENTS
The identified ‘voice’ of the customer should be
translated into product specification/
requirements
We need a system for translating consumer
needs into appropriate requirements at every
stage, from research through product design and
development, to manufacture, distribution,
installation and marketing, sales and service.
On such systematic and organised approach for
translating customer needs into product
requirements is ‘Quality function deployment’
(QFD).
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43. CUSTOMER COMPLAINTS / FEEDBACK
Customer feedback or customer
complaint is required.
To discover customer dissatisfaction.
To identify customer needs.
To discover relative priorities of quality.
To compare performance with the
competition, and
To determine opportunities for
improvement.
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44. TOOLS USED FOR COLLECTING
CUSTOMER COMPLAINTS / FEEDBACK
1. COMMENT CARD – It is a card ,normally attached to
the warranty card, issued with the product at the time of
sales.
2. CUSTOMER QUESTIONNAIRE – Surveys through
mail, or survey through E-Mail, or Surveys through
telephone
3. FOCUS GROUP –it includes customer meetings ,word
associations, discussions, relaxations techniques, etc
4. TOLL FREE TELEPHONE NUMBERS
5. CUSTOMER VISITS i.e visits to a customer place
6. REPORT CARDS
7. THE INTERNET AND COMPUTER- it includes
newsgroups, electronic bulletin boards, mailing lists, etc
8. EMPLOYEE FEEDBACK
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49. CUSTOMER RETENTION
Customer retention is the process of retaining
the existing customers. It is obvious that
customer retention is more powerful and effective
than customer satisfaction.
Customer care can be defined as every activity
which occurs within an organisation that ensures
that a customer is not only satisfied but also
retained.
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50. COST OF QUALITY
MEANING
Quality cost is the cost of poor products or services.
DEFINITION
Quality costs are defined as those costs associated
with the non – achievement of product/service
quality as defined by the requirements
established by the organization and its contracts
with customers and society.
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51. ELEMENTS OF QUALITY COSTS
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52. ELEMENTS OF QUALITY COSTS
COST OF PREVENTION
Prevention cost - efforts to prevent failures
Cost of prevention includes,
i) cost of quality planning
ii) cost of documenting
iii) process control cost
iv) cost of training
v) costs associated with preventing recurring
defects
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53. COST OF APPRAISAL
Appraisal cost – incurred in assessing that the
products/services conform to the requirements
Cost of appraisal includes:
i) Cost of receiving test and inspection
ii) Cost of laboratory acceptance testing
iii) Cost of installation testing
iv) Cost of installation and commissioning
v) Cost of maintenance and calibration of testing
and inspecting equipments
vi) Cost of test equipment depreciation
vii) Cost of analysis of reporting of tests and
inspection results
viii) Cost of line quality engineering
ix) Cost of vendor rejects
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54. COST OF INTERNAL FAILURES
Internal failure cost arise due to internal failures
(scrap, rejects, adjustments, labour sitting idle
while waiting for repairs, and sales discounts for
inferior products).
Cost of Internal failure includes:
1. Cost associated with scrap and rejects
2. Cost of repair and work
3. Cost of design changes
4. Cost of trouble shooting or defect failure analysis
5. Cost of reinspection and retesting
6. Cost of sales discounts for infetior products
7. Cost of downgrading
8. Cost of downtime
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55. COST OF EXTERNAL FAILURES
External failure costs- the rejection of the
products/services by the customers due to poor
quality
Cost of External failure includes:
1. Cost of processing complaints from customers
2. Cost of commissioning failures
3. Cost of servicing or replacing the defective items
4. Cost of guarantee and warranty claims
5. Cost of lost good ill of customer
6. Cost of product reliability compensation
7. Cost of loss of sales
8. Cost of concessions offered to customers
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