1. Total Quality Management
Faculty: J.M.Pant
Management Consultant, Trainer and Visiting Professor
For any query, contact Mob: ;
J.M.Pant, Faculty

2. Total Quality Management
1. Main concerns of Manufacturers and Customers
Manufacturer Customer
Quality Quality
Cost Price
Productivity Availability
Concerns of manufacturer and customer are generally not the same. Customer usually
has no concern for company productivity and cost.
 Quality is the only common concern
J.M.Pant, Faculty

3. Total Quality Management
2. What is Total Quality Management (TQM)
  The elements of TQM as the name suggests are :
Total
Quality
Management
  Total implies -
Complete - 100%
All areas and functions
All activities
All employees - everyone
All time - always
J.M.Pant, Faculty

4. Total Quality Management
3. Quality target is 100%, not even 99.9% because even 99.9% might mean many dissatisfied customers every year, defective components entering assembly, accidents etc.
  Quality definition
Old view : Quality relates to products manufactured exactly to specifications.
New view : Total Quality relates to products that totally satisfy our customer needs and expectations in every respect on a continuous basis. Quality then is to satisfy customer needs....it is in fact to delight customers.
J.M.Pant, Faculty

5. Total Quality Management
4. Who is our customer
The next person(individual or functional group) in the workplace; the receiver of output and the next to act on it. A customer may be either external or internal.
  Example :  Next in process customer
  Marketing Design
Design Manufacturing
Manufacturing Sales
Machine Shop Assembly
Assembly Testing
Testing Despatch
Sales Product user
J.M.Pant, Faculty

6. Total Quality Management
5. Management implies :
  Quality does not happen on its own. It requires to be planned and managed. It is a management function, though it involves everyone. Therefore it needs a systematic approach.
  TQM = Sum of TOTAL + QUALITY + MANAGEMENT
J.M.Pant, Faculty

7. Total Quality Management
6. TOTAL QUALITY MANAGEMENT is a thought revolution in management where the entire business is operated with customer orientation in all activities all the time by every one in the organization. TQM is an integrated system and methodology throughout the organization that help to design, produce and service quality products or services which are most economical for their value, most useful and always satisfactory to the customer.
J.M.Pant, Faculty

8. Total Quality Management
7. Elements of TQM
7.1 Top management commitment
Management responsibility
Support all TQM activities
Appointment of management representative
Customer feedback and complaints
Quality reviews
Shareholder delight
7.2 Delight the customer
Customer satisfaction, customer delight
Internal customers
Customer focus, customer orientation
J.M.Pant, Faculty

9. Total Quality Management
7. Elements of TQM
7.3 People based management
Total Employee Involvement
Employee delight
Team work
People make quality
Education and Training
Effective communication
Internal audits
Review of non conformities
J.M.Pant, Faculty

10. Total Quality Management
7. Elements of TQM
7.4 Management by fact
Process orientation
Measurement, Observation, Experimentation
7.5 Continuous improvement
Continuous improvement cycle (PDCA)
Kaizen 5S
Prevention of repetitive occurrence
J.M.Pant, Faculty

11. PDCA Cycle How to improve next time? What to do? How to do?
1. Plan
Identify problem and develop plan for improvement.
2. Do
Implement plan on a test basis.
3. Study/Check
Assess plan; is it working?
4. Act
Institutionalize improvement; continue cycle.
How to improve next time?
What to do?
How to do?
Things as per plan?
Do as planned
J.M.Pant, Faculty

12. Problem Solving Cycle PDCA for problem solving Definition of problem
What
Plan
Analysis of
Problem
Why
Identification
Of causes
How
Planning
Countermeasures
Implementation Do
Confirmation
Of result
Check
Standardization
Action
J.M.Pant, Faculty

13. Total Quality Management
7. Elements of TQM
7.6 Appropriate technology
JIT
Automation
Fool proofing
TPM
7.7 Statistical process control
7.8 Problem solving tools/techniques including Seven QC tools
7.9 Benchmarking
J.M.Pant, Faculty

14. Total Quality Management
7. Elements of TQM
7.10 Quality Function deployment
Identify customer expectations
Derive measurable parameters
Set standards for these
7.11 Monitor variability in parameters
7.12 Move towards zero variability
J.M.Pant, Faculty

15. Total Quality Management
7. Elements of TQM
7.13 Institute all pervasive system
ISO 9001:2000
TS 16949
ISO series, ISO 14001
7.14 Supplier Control
Approval of supplier for purchase
Technical support and vendor development
Supplier delight
Qualify suppliers and certify for direct line feed
J.M.Pant, Faculty

16. Total Quality Management
7. Elements of TQM
7.15 Reduce cost of quality
Internal failure
External failure
Appraisal
Prevention
7.16 Developing a quality culture
Change in mind set
Being proactive
J.M.Pant, Faculty

17. Cost of uality Measurement of a Company’s Health
Financial Data 50 40 30 20 10 5 %
Sales
Operation Costs
Material Costs
Overhead Costs
Gen. & Admin. Costs
Percentage of Sales Dollar
Factory Data
Defect Reports
Labor Hours
Recode/Redesign
Customer Complaints
J.M.Pant, Faculty

18. Cost of uality Iceberg Bugs Recode Defects Warranty Costs
Quotation Errors
Product Liability
Missed Deadlines
Configuration Errors
Complaint Handling
Bad Market Reviews
Process Slowdown
Field Service
Lost Market Share
Software Patches
Returned Goods
Interface
Errors
Help Desk
Poor Documentation
Training
J.M.Pant, Faculty

19. Cost of uality Element Decision Flow YES NO PREVENTION APPRAISAL
Is Cost related to
Prevention of Non-
Conformance ?
Evaluating the
Conformance ?
Non-conformance
Is Non-Conformance
found prior to
Shipment ?
YES NO
PREVENTION
APPRAISAL
INTERNAL FAILURE
EXTERNAL FAILURE
Not a Quality Cost
J.M.Pant, Faculty

20. Cost of uality Examples of Elements
PREVENTION Design Quality Progress Reviews Requirements Documentation QA Training Process Engineering
üINTERNAL FAILURE Recode/Repair Labor Defect Tracking & Reports Requirement Changes Down Equipments
APPRAISAL Unit Testing Regression Testing Automated Test Tools User Interface Reviews
EXTERNAL FAILURE Returned Goods Liability Costs Help Desk Lost Sales/Market Share
J.M.Pant, Faculty

21. Cost of uality Strategy Premise
The Strategy is based on the premise that:
For each failure there is a root cause.
Causes are preventable.
Prevention is always cheaper.
J.M.Pant, Faculty

22. Cost of uality Appraisal Prevention Internal Failures Cost of Quality%
External
Total Sales
Cost of
Quality%
TOTAL SALES
C O Q (Rs.Rs.Rs.)
J.M.Pant, Faculty

23. COST OF QUALITY OPTIMUM QUALITY COST MODEL
TOTAL
COST
OPTIMAL
POINT
COST/ GOOD UNIT
FAILURE
COSTS
PREVENTION & APPRAISAL COSTS
100
% GOOD
J.M.Pant, Faculty

24. Target Specification Example
A study found U.S. consumers preferred Sony TV’s made in Japan to those made in the U.S. Both factories used the same designs & specifications. The difference in quality goals made the difference in consumer preferences.
Japanese factory (Target-oriented)
This slide probably deserves some discussion. Some students will probably question whether consumers could tell the difference between the two. You should stress that they can tell the difference and that this will have an impact on their buying decisions.
U.S. factory (Conformance-oriented)
J.M.Pant, Faculty

25. Benchmarking
How do today's business leaders sustain their competitive edge?
By staying abreast of the latest, best practices and learning to apply them to every aspect of their organization.
Whether you work in accounts payable, travel & entertainment, planning & budgeting, inventory management or payroll, learning about, customizing and implementing the best practices is the surest way to enhance the efficiency and effectiveness of your work.
J.M.Pant, Faculty

26. Benchmarking Benchmarking concept What are others’ What is our
Performance levels?
How did they get there?
What is our
Performance level?
How do we do it?
Creative
Adaptation
Breakthrough
Performance
J.M.Pant, Faculty

27. Benchmarking Implicit in benchmarking are two key elements:
Measuring performance in numerical terms (metrics). Requires some sort of units of measure.
The numbers achieved by the best in class benchmark are the target.
Organization seeking improvement plots its own performance against the target.
Think of measures of performance in your manufacturing unit? service unit? For HR processes?
J.M.Pant, Faculty

28. Benchmarking
Benchmarking requires that managers understand why their performance differs.
Bench markers must develop a thorough and in-depth knowledge of both their own processes and the processes of the best-in-class organization.
An understanding of the differences allows the managers to organize their improvement efforts to meet the goal.
Benchmarking is about setting goals and about meeting them by improving processes.
J.M.Pant, Faculty

29. Benchmarking Process Decide what to benchmark
Understand current performance
Plan
Study others
Learn from the data
Use the findings
J.M.Pant, Faculty

30. Benchmarking Process Decide what to benchmark
Think about the critical success factors and the mission.
Which processes are causing the most trouble?
Which processes contribute most to customer satisfaction and which are not performing up to expectations?
What are the competitive pressures impacting the organization the most?
What processes have the most potential for differentiating our organization from the competition?
J.M.Pant, Faculty

31. STANDING IN THE MARKETPLACE
<Example>Rating for each attribute and weighted rating to be entered in the cells for company X and the competitors
Attribute
Weight
Company X
Competitor A
Competitor B
Safety
Performance
Quality
Service
Ease of
Use
Reliability
J.M.Pant, Faculty

32. STANDING IN THE MARKETPLACE
<Example>For a service unit
Satisfaction with ..
Weightage
Company X
Competitor A
Competitor B
Greeting with a smile
Processing transactions without error
Easy to read and understand bank statements
Prompt response
J.M.Pant, Faculty

33. STANDING IN THE MARKETPLACE
<Example>automobile manufacturer experiencing a drop in market share
Attribute
Weightage
Comparison to competition %
Superior
Competitive
Inferior
Quality of equipment
Quality and availability of spare parts
Quality of field repair service
J.M.Pant, Faculty

34. Types Of Benchmarking Internal Competitive
Comparison within the organization of similar activities.
Data easy to obtain
Competitive
Organization’s survival depends on its performance relative to competition
Through surveys, reports, customers, suppliers, buying customers product to take apart and test.
J.M.Pant, Faculty

35. Types Of Benchmarking Process.
Many processes are common across industry boundaries, and innovations from other types of organizations can be applied across industries.
It is relatively easy to find organizations with world class operations through published information, suppliers and consultants.
For example, processes of payroll and accounts receivable, order processing, design, logistics etc..
J.M.Pant, Faculty

36. Types Of Benchmarking Process. <Examples>
Southwest Airlines benchmarked turnaround time with auto racing pit crews.
Motorola looked to Domino’s Pizza and Federal Express for the best ways to speed up delivery systems.
J.M.Pant, Faculty

37. Benchmarking Process Identifying the best firms to benchmark
There is no existing magic list of best-in-class companies.
Hierarchy of best practices
World Class
Any organization, India
Industry-wide, Sector-wide
Competitor
Internally
J.M.Pant, Faculty

38. Benchmarking Process Studying Others Information available internally
Public information
Questionnaires
Site visits
Focus groups
Panels of benchmarking partners brought together to discuss areas of mutual interest.(customers, suppliers, members of professional organizations, people with previous benchmarking activity experience, consultants).
J.M.Pant, Faculty

39. Benchmarking Process Learning from the data
Is there a gap between the organization’s performance and the performance of the best-in-class organizations?
What is the gap? How much is it?
Why is there a gap? What does the best-in-class do differently that is better?
If best-in-class practices were adopted, what would be the resulting improvement?
J.M.Pant, Faculty

40. Benchmarking Process Using the findings
Two groups must agree on the change
The process owners-people who will run the process
Top management-who will enable the process and provide the necessary resources
If best-in-class practices were adopted, what would be the resulting improvement?
Current practices can’t change the best-in-class results but changing the process can.
J.M.Pant, Faculty

41. Benchmarking Process Using the findings
When acceptance is gained, new goals based on the benchmark findings are set.
The generic steps for the development and execution of action plans are:
Specify tasks
Sequence tasks
Determine resource needs
Establish task schedule
Assign responsibility for each task
Describe expected results
Specify methods for monitoring results
J.M.Pant, Faculty

42. Quality Function Deployment
Dr Mizuno of Tokyo Institute of Technology is credited with initiating the QFD system.
First application of QFD was at Mitsubishi Heavy Industries in Kobe shipyard in 1972.
After 4 years implemented by Toyota in production of mini-vans.
QFD introduced in U.S in 1984 by Dr Clausing of Xerox.
J.M.Pant, Faculty

43. Quality Function Deployment
Benefits of QFD:
Improves customer satisfaction
Defines requirements in a set of basic needs and compares it to all competitive information.
Management can then place resources where they will be the most beneficial in improving quality.
Reduces implementation time
Fewer engineering changes needed
Critical to quality issues are identified and monitored from product inception to production.
J.M.Pant, Faculty

44. Quality Function Deployment
Benefits of QFD:
Promotes team work
Horizontal deployment of communication channels
Avoids misinterpretation, opinions and miscues.
Provides documentation
Database for future design or process improvements is created.
Serves as a training tool for new engineers.
J.M.Pant, Faculty

45. Quality Function Deployment
QFD is a planning tool used to fulfill customer expectations.
Focuses on Voice of the customer.
Market research attempts to capture the voice of customer but they sometimes conflict, and lack clarity.
This is where voice of the customer gets lost and voice of the organization enters.
J.M.Pant, Faculty

46. Quality Function Deployment
Voice of Customer
Unsolicited
Solicited
Qualitative
Quantitative
Random
Structured
Trade visits
Customer visits
Consultants
Focus groups
Customer Complaint reports; lawsuits
Customer surveys; market surveys; trade trials; customer audits; product purchase (buy back) survey
Sales force; training programs; conventions; trade journals; suppliers; academic; employees
J.M.Pant, Faculty

47. Quality Function Deployment
Voice of customer:
What does the customer really want?
What are the customer’s expectations?
Are the customer’s expectations used to drive the design process?
What can the design team do to achieve customer satisfaction?
J.M.Pant, Faculty

48. Quality Function Deployment
Voice of customer:
Once the customer expectations and needs have been identified and researched, QFD team processes the information.
The Affinity diagram is ideally suited for most QFD applications.
QFD team:
Designing a new product
Improving an existing product
J.M.Pant, Faculty

49. Quality Function Deployment
QFD team
Team members from Marketing, Design, Quality, Finance and Production.
For existing product, team may have fewer members.
Time commitment and inter team communication is a must.
Regular team meetings.
Team focus on quality management goal.
J.M.Pant, Faculty

50. Quality Function Deployment
Affinity Diagram
Gathers large amount of data and organizes data into groupings based on their natural interrelationships.
Used when thoughts are too widely dispersed or numerous to organize
New solutions are needed
Steps
Phrase the objective
Record all responses
Group the responses
Organize groups in an affinity diagram
J.M.Pant, Faculty

51. Mapping the Voice of Customer
Affinity diagram – Scrambled ideas
What are the issues involved in missing shipping dates?
Not enough fork trucks
Engineering changes
Insufficient training
Overcrowded dock
Error on bill of lading
Teams not used
Computer crashes
No place for returns
Inexperienced supervisors
Shipping turnover
J.M.Pant, Faculty

52. Mapping the Voice of Customer
Affinity diagram – Ordered ideas
What are the issues involved in missing shipping dates?
Facilities
People
System
Computer crashes
Overcrowded dock
Insufficient training
Engineering
changes
Teams not used
No place for returns
Shipping turnover
Error on bill
of lading
Not enough fork trucks
Inexperienced supervisors
J.M.Pant, Faculty

53. Quality Function Deployment
Prepare an affinity diagram for:
Improvement of the cafetaria
Reducing equipment downtime
Reducing congestion on roads
Making Delhi more safe
Increasing literacy in India
Improving quality of PG management /engineering/ medical education
J.M.Pant, Faculty

54. House of Quality
The primary planning tool used in QFD is the house of quality.
The house of quality translates the voice of the customer into design requirements that meet specific target values and matches those against how an organization will meet those requirements.
J.M.Pant, Faculty

55. Technical descriptors (voice of the organization)
Interrelationship between
technical descriptors
Technical descriptors
(voice of the organization)
Customer requirements
(Voice of the customer)
Relationship between
requirements and descriptors
Prioritized customer
requirements
Prioritized technical descriptors
J.M.Pant, Faculty

56. Quality Function Deployment
QFD (Fig A)
Process
Control
features
Process
features
features
Process
Product
features
Customers’
needs
features
Product
Customers
needs
Customers
J.M.Pant, Faculty

57. Quality Function Deployment
Fig B is a matrix of customer needs (“customer requirements”) and product features (“technical requirements”) for paper being supplied to a commercial printer. Note the additional requirements on importance weighting, correlations between requirements, units of target values (e.g millimeters for width and thickness) and competitive evaluations.
Fig B is also called as the House of Quality.
J.M.Pant, Faculty

58. Quality Function Deployment
House of Quality (Fig B)
Correlations entered
In squares like:
Strong positive, positive,
Negative,
Strong negative
Technical requirements
Paper width
Paper thickness
Coating thickness
Tensile strength
Paper color
Competitive evaluation
Importance to customer
X = Us
A = Competitor A
B = Competitor B
( 5 is best)
Customer
requirements
Paper will not tear 3   
X A B
Consistent finish 1
A X B
No ink bleed 2
B A X
Prints clearly
X A B
Relationships
Strong=9
 Medium = 3
 Small=1
J.M.Pant, Faculty

59. Quality Function Deployment
House of Quality (Fig B)
Correlations entered
In squares like:
Strong positive, positive,
Negative,
Strong negative
Technical requirements
Peper width
Paper thickness
Coating thickness
Tensile strength
Paper color
Competitive evaluation
Importance to customer
X = Us
A = Competitor A
B = Competitor B
( 5 is best)
Customer
requirements
Importance weighting 3 27 36 9
X A B
Target Values
W:mm
T: mm
microns
Kg per sq cm
Approved panel
A X B
Technical evaluation 2 1 B
X A B A X
A X A X B
B X B A
B A X
X A B
Relationships
Strong=9
 Medium = 3
 Small=1
J.M.Pant, Faculty

60. Total Quality Management
Change in mind set for variability reduction
Conventional
TQM way
Meet specifications
Move to target value
High tech machines needed
Even with old machines through better setting, maintenance and employee training
Managers think and plan
Managers guide and lead
Workers think, plan and do
MBO
Kaizen (continuous improvement)
Profit by driving task completion
Quality is the path of profit
J.M.Pant, Faculty