GE2022 Total Quality Management Lecture by: S.P.SIVAGNANA SUBRAMANIAN Assistant Professor-Dept. of ECE Sri Venkateswara college of engineering, Sriperumbudur.

UNIT - I INTRODUCTION

Dimensions of manufacturing and service quality Basic concepts of TQM UNIT I INTRODUCTION Introduction Need for quality Evolution of quality Definition of quality Dimensions of manufacturing and service quality Basic concepts of TQM Definition of TQM TQM Framework Contributions of Deming, Juran and Crosby Barriers to TQM.

What is Quality? Degree of excellence, or general excellence (…has quality) Attribute or faculty (…Has many good qualities) Relative nature, character, or property

Definitions of Quality- Quality is conformance to requirements or specifications (Crosby 1979) Fitness for use (Juran 1988) Degree to which a set of inherent characteristics fulfills requirements (As per ISO 9000:2000)

Definitions of Quality-Continued The American National Standards Institute (ANSI) and the American Society for Quality (ASQ) define quality as: “The totality of features and characteristics of a product or service that bears on its ability to satisfy given needs.”

Quality It is the degree to which a set of inherent characteristics fulfills the requirements. Degree means that quality can be used with adjectives like poor, good, and excellent. Inherent is defined as existing in something, especially as a permanent characteristics. Characteristics can be quantitative or qualitative Requirement is a need or expectation that is stated; generally implied by the organization, its customers, and other interested parties. Or obligatory. Quality can be quantified as Q = P / E where Q = Quality, P = Performance and E = Expectation - 7 -

Why Quality? Reasons for quality becoming a cardinal priority for most organizations: Competition – Today’s market demand high quality products at low cost. Having `high quality’ reputation is not enough! Internal cost of maintaining the reputation should be less. Changing customer – The new customer is not only commanding priority based on volume but is more demanding about the “quality system.” Changing product mix – The shift from low volume, high price to high volume, low price have resulted in a need to reduce the internal cost of poor quality.

Why Quality? Product complexity – As systems have become more complex, the reliability requirements for suppliers of components have become more stringent. Higher levels of customer satisfaction – Higher customers expectations are getting spawned by increasing competition. Relatively simpler approaches to quality viz. product inspection for quality control and incorporation of internal cost of poor quality into the selling price, might not work for today’s complex market environment.

Total Quality Management TQM is an enhancement to the traditional way of doing business. It is a proven technique to guarantee survival in world class competition. Only by changing the actions of management will the culture and actions of an entire organization be transformed. Total : Made up of the whole Quality : Degree of excellence a product or service provides Management : Act, art or manner of handling , controlling ,directing etc. So TQM is the art of managing the whole to achieve excellence. It is both a philosophy and a set of guiding principles that represent the foundation of continuously improving the organization. It is the application of quantitative methods and human resources to improve all the processes within the organization and exceed customer needs now and in the near future. TQM integrates fundamental management techniques, existing improvement efforts, and technical tools under a disciplined approach. - 10 -

Why TQM? Ford Motor Company had operating losses of $3.3 billion between 1980 and 1982. Xerox market share dropped from 93% in 1971 to 40% in 1981. Attention to quality was seen as a way to combat the competition.

Why TQM? Ford Motor Company had operating losses of $3.3 billion between 1980 and 1982. Xerox market share dropped from 93% in 1971 to 40% in 1981. Attention to quality was seen as a way to combat the competition.

Quality? Quality is not fine-tuning your product at the final stage of manufacturing,before packaging and shipping . Quality is in-built into the product at every stage from conceiving –specification & design stages to prototyping –testing and manufacturing stages. TQM philosophy and guiding principles continuously improve the Organisation processes and result in customer satisfaction.

TQM Evolution Custom-built Articles/Products having considerable control over Quality. Mass- Produced Products with less control over Quality Quality control Department in Factories. TQM-based Production facility – enhancing the Organization through Quality techniques to better achieve organization’s goals-eg. Productivity and Profitability with min.wastage. ISO Quality Management Systems.

QUALITY IS ….the QUALIFIER! Doing it right first time and all the time. This boosts Customer satisfaction immensely and increases efficiency of the Business operations. Clearing the bar (ie. Specification or Standard stipulated) Excellence that is better than a minimum standard.

What does TQM mean? Total Quality Management means that the organization's culture is defined by and supports the constant attainment of customer satisfaction through an integrated system of tools, techniques, and training. This involves the continuous improvement of organizational processes, resulting in high quality products and services.

What’s the goal of TQM? “Do the right things right the first time, every time.”

Another way to put it At it’s simplest, TQM is all managers leading and facilitating all contributors in everyone’s two main objectives: (1) total client satisfaction through quality products and services; and (2) continuous improvements to processes, systems, people, suppliers, partners, products, and services.

Productivity and TQM Traditional view: TQM view: Quality cannot be improved without significant losses in productivity. TQM view: Improved quality leads to improved productivity.

Basic Tenets of TQM 1. The customer makes the ultimate determination of quality. 2. Top management must provide leadership and support for all quality initiatives. 3. Preventing variability is the key to producing high quality. 4. Quality goals are a moving target, thereby requiring a commitment toward continuous improvement. 5. Improving quality requires the establishment of effective metrics. We must speak with data and facts not just opinions.

The three aspects of TQM Tools, techniques, and training in their use for analyzing, understanding, and solving quality problems Counting Customers Culture Quality for the customer as a driving force and central concern. Shared values and beliefs, expressed by leaders, that define and support quality.

Introduction What is a customer? Anyone who is impacted by the product or process delivered by an organization. External customer: The end user as well as intermediate processors. Other external customers may not be purchasers but may have some connection with the product. Internal customer: Other divisions of the company that receive the processed product. What is a product? The output of the process carried out by the organization. It may be goods (e.g. automobiles, missile), software (e.g. a computer code, a report) or service (e.g. banking, insurance)

Introduction to dimensions of quality How is customer satisfaction achieved? Two dimensions: Product features and Freedom from deficiencies. Product features – Refers to quality of design. Examples in manufacturing industry: Performance, Reliability, Durability, Ease of use, Esthetics etc. Examples in service industry: Accuracy, Timeliness, Friendliness and courtesy, Knowledge of server etc. Freedom from deficiencies – Refers to quality of conformance. Higher conformance means fewer complaints and increased customer satisfaction.

Dimensions of Quality-Continued Transcendent definition: excellence Product-based definition: quantities of product attributes User-based definition: fitness for intended use Value-based definition: quality vs. price Manufacturing-based definition: conformance to specifications

Quality and customer expectations Quality is also defined as excellence in the product or service that fulfills or exceeds the expectations of the customer. There are 9 dimensions of quality that may be found in products that produce customer-satisfaction. Though quality is an abstract perception,it has a quantitative measure- Q= (P / E ) , where Q=quality, P= performance(as measured by the Mfgr.), and E = expectations( of the customer).

The 9 Dimensions of Quality Performance Features Conformance ----------------------------- Reliability Durability Service Response- of Dealer/ Mfgr. to Customer Aesthetics – of product Reputation- of Mfgr./Dealer

The Dimensions of Quality MEANING Performance Primary product characteristics Features Secondary characteristics Conformance Meeting specifications or industry standards Reliability Consistency of performance over time Durability Useful life Service Resolution of problems and complaints Response Human-to-human interface Aesthetics Sensory characteristics Reputation Past performance and other intangibles

Value-based Approach Manufacturing Dimensions Service Dimensions Performance Features Reliability Conformance Durability Serviceability Aesthetics Perceived quality Service Dimensions Reliability Responsiveness Assurance Empathy Tangibles

Total Quality Management Total Quality Management is the application of quantitative methods and human resources to improve all the processes within an organization and exceed customer needs now and in the future. TQM has 6 basic concepts: Leadership Customer Satisfaction Employee Involvement Continuous Process Improvement Supplier Partnership Performance Measures 29

Basic concepts of TQM A committed and involved management to provide long term top-to-bottom organizational support : LEADERSHIP An unwavering focus on the customer, both internally and externally : CUSTOMER SATISFACTION Effective involvement and utilization of the entire work force : EMPLOYEE INVOLVEMENT Continuous improvement of the business and production process : CONTINUOUS PROCESS IMPROVEMENT Treating suppliers as partners : SUPPLIER PARTNERSHIP Establish performance measures for the processes : PERFORMANCE MEASURES - 30 -

Responsibility for Quality Customer Service Marketing Quality Product Or Service Packaging and Storage Design Engineering Inspection and Test Procurement Production Process Design

Responsibility for Quality Marketing Help to evaluate the level of product quality that a customer wants, needs… Design Engineering Translate the customer’s requirements into operating characteristics, exact specifications, and appropriate tolerances Procurement Responsible for procuring quality materials and component

Responsibility for Quality Process Design Develops processes and procedures that will produce a quality product/service Production Produce quality products and services Inspection and Test Appraise the quality of purchased and manufactured items and to report the results

Responsibility for Quality Packaging and Storage Preserve and protect the quality of the product Inspection and Test Appraise the quality of purchased and manufactured items and to report the results Service Fully realizing the intended function of the product during its expected life

TQM Framework Gurus Principles and Practices Tools and techniques Product or Service realization Customer - 35 -

Quality Gurus Deming: The father of the quality movement. Scientific approach to quality Juran: Quality by design Crosby: Quality is free

Gurus of TQM Walter A. Shewart Ph.D. : Control Chart Theory, PDSA Cycle - 37 -

Gurus of TQM W. Edwards Deming Ph.D.: 14 points of theory of management to improve quality, productivity and competitive position - 38 -

The Deming philosophy “A System of Profound Knowledge” Appreciation for a system - A system is a set of functions or activities within an organization that work together to achieve organizational goals. Management’s job is to optimize the system. (not parts of system, but the whole!). System requires co-operation. Psychology – The designers and implementers of decisions are people. Hence understanding their psychology is important.

The Deming philosophy Understanding process variation – A production process contains many sources of variation. Reduction in variation improves quality. Two types of variations- common causes and special causes. Focus on the special causes. Common causes can be reduced only by change of technology. Theory of knowledge – Management decisions should be driven by facts, data and justifiable theories. Don’t follow the managements fads!

The Deming Philosophy Create and publish the aims and purposes of the organization Learn the new philosophy Understand the purpose of inspection Stop awarding business based on price alone. Improve constantly and forever the System Institute training Teach and institute leadership

The Deming Philosophy Drive out fear,create trust,and create a climate for innovation Optimize the efforts of teams,groups,and staff areas Eliminate exhortations for the work force Eliminate numerical quotas for the work force Eliminate management by objectives Remove barriers to pride of workmanship Encourage education and self-improvement for all Take action to accomplish the transformation.

Gurus of TQM Joseph M. Juran Ph.D. : Juran Trology - 43 -

The Juran philosophy Pursue quality on two levels: The mission of the firm as a whole is to achieve high product quality. The mission of each individual department is to achieve high production quality. Quality should be talked about in a language senior management understands: money (cost of poor quality). At operational level, focus should be on conformance to specifications through elimination of defects- use of statistical methods.

The Juran philosophy Quality Trilogy – Quality planning: Process of preparing to meet quality goals. Involves understanding customer needs and developing product features. Quality control: Process of meeting quality goals during operations. Control parameters. Measuring the deviation and taking action. Quality improvement: Process for breaking through to unprecedented levels of performance. Identify areas of improvement and get the right people to bring about the change.

The Crosby philosophy Absolute’s of Management Quality means conformance to requirements not elegance. There is no such thing as quality problem. There is no such thing as economics of quality: it is always cheaper to do the job right the first time. The only performance measurement is the cost of quality: the cost of non-conformance. Basic Elements of Improvement Determination (commitment by the top management) Education (of the employees towards Zero Defects (ZD)) Implementation (of the organizational processes towards ZD)

Gurus of TQM Armand V. Feigenbaum Ph.D. : Author of Total Quality Control - 47 -

Gurus of TQM Kaoru Ishikawa Ph.D. : Author of Quality is Free and Quality Without Tears ; Fishbone / Ishikawa diagram for analysing cause and effect - 48 -

Gurus of TQM Genichi Taguchi Ph.D. : Taguchi philosophy - 49 -

Benefits of Quality Higher customer satisfaction Reliable products/services Better efficiency of operations More productivity & profit Better morale of work force Less wastage costs Less Inspection costs Improved process More market share Spread of happiness & prosperity Better quality of life for all.

Conclusion

Total Quality Is… Meeting Our Customer’s Requirements Doing Things Right the First Time; Freedom from Failure (Defects) Consistency (Reduction in Variation) Continuous Improvement Quality in Everything We Do

A Quality Management System Is… A belief in the employee’s ability to solve problems A belief that people doing the work are best able to improve it A belief that everyone is responsible for quality

Elements for Success Management Support Mission Statement Proper Planning Customer and Bottom Line Focus Measurement Empowerment Teamwork/Effective Meetings Continuous Process Improvement Dedicated Resources

End of UNIT - 1