Total Quality Management

Definition of Quality
• Fitness for use.
• Ability of product to meet customer’s need.
• Getting what you are pay for.
• Degree of excellence, a product provide.
• Quality can be also express by following
expression
Where
• Q = Quality
• P = Performance
• E = Expectation
• If Q ≥ 1 means P ≥ E, i.e. performance of product
is greater or equal to expectation.
• If Q < 1 means P < E, i.e. performance of product
is less than our expectations.
• Hence Quality can also be defined as,
‘Performance of product / service that
match or exceeds the expectation of customers.
 Total Quality Management
• Total: Made up of the whole.
• Quality: Degree of excellence, a product or
service provides.
• Management: Art of getting things done.

Hence TQM can be defined as “Art of managing

the whole to achieve excellence”
 Cost of Quality (COQ)
• COQ is the cost of doing things wrong i.e. price
of non-conformance.
• The cost of quality is the price of creating a good
quality product or service.
– Example: Quality inspection, process improvement
etc.
• COQ can also defined as the ‘cost of producing
bad quality product’
– Example: Rework, Loss of sales etc.
• Quality Control Cost: Cost necessary for achieving
high quality product.
Example: Training, Quality Improvement Program,
testing of products in lab.
1. Prevention Cost: Cost associated with preventing the
production of poor quality product/ defective product.
Example: Training of employee, Quality improvement
programs, Improvement of manufacturing process.
2. Appraisal Cost: Costs related to testing the product to
identify the defects.
Example: Quality inspections, product testing.
• Quality Failure Cost: Costs consequences of poor
quality of product such as rework, returned goods,
cost to society, loss of customers etc.
1. Internal Failure Cost: Costs that result from the
production of defective product before delivery to
customer.
Example: Rework, scrap, lost of labor and machine
time.
2. External Failure Cost: Costs that occur after delivery
of defective products to customer.
Example: Rework, rejection of products, lost
customer, reduction of sales, lost of sales.
 Philosophies and Tools of TQM
• Total Quality Management can be achieved by
following philosophies and tools of TQM.
• There are 7 principles and 7 tools of TQM.
• These philosophies and tools outline an excellent
way to produce quality product.
• These philosophies and tools are given by
various philosophers and experts.
• These philosophers are called ‘Quality Gurus’ or
‘TQM Gurus’.
 TQM Gurus and Their Contributions
1. Walter Shewhart: Developed Circular model for
quality improvement known as PDCA (Plan, Do,
Check, Act) Cycle.
2. Edwards Deming: He is known as Father of
Quality. He has given 14 Points, which provide a
theory for quality improvement.
3. Joseph Juran: Given Juran Trilogy for managing
quality.
4. Philip Crosby: Introduced the concept of ‘Zero
defects’.
5. Genichi Taguchi: Developed Quality Loss
Function.
6. Kaoru Ishikawa: Developed Cause-and-effect
diagram.
7. Armand Feigenbaum: Introduced the concept of
Total Quality Control.
 TQM Philosophy
• Leadership
• Customer Satisfaction
• Employee Involvement
• Continuous Process Improvement
• Supplier Partnership
• Performance Measures
• Benchmarking
 Tools of TQM
• Cause-and-Effect Diagram
• Check Sheet
• Histogram
• Pareto Analysis
• Scatter Diagram
• Flowchart
• Control Chart
 Customer Satisfaction
• Customer Satisfaction is the customer reaction to
the value received from purchase (utilization) of
product.
• Customer need are represented by circle.
• Square depicts product offered by organization.
• Total satisfaction is achieved
when
o Offer matched the need or
o Circle superimposed on the
square.
• Customer is most important asset of any
organization.
• There are two types of customer
– External Customer
– Internal Customer
• External Customer: External Customer are said
to be those people who purchases the product or
service i.e. end user
• Internal Customer: Internal Customer are the
Vendor, Distributor or Retailers who is a part of
delivering your product to end user.
 Continuous Process Improvement
• Another concept of TQM philosophy is the focus
on continuous improvement of process.
• Continuous improvement is a philosophy of never-
ending improvement.
• There are number of tools and techniques available
for continuous process improvement.
• Example: Six Sigma, Kaizen, Lean Manufacturing,
Toyota Production System.
• Consider example of Car locking system

• Separate button at each door away from

Previously door’s handle.

• Locking button merge with handle.

Then

• There is remote locking system for car door,

It is locked by driver only (Called Central
Now locking system)
• Process: Process is a series of activities or steps
used to transform input(s) into output(s).
 Performance Measure
• Performance measure is also one of the TQM
philosophy.
• The objectives of the performance measure are:
– Measure the performance of the process.
– Determine which process need to be improved.
– Do needful action to improve the performance of the
process.
• For performance measure we tools like Quality
awards, ISO etc.
 PDCA Cycle
• It is developed by Walter Shewhart.
• It is circular model, which is a repetitive four-
stage model for continuous improvement.
• The model is implemented to improve the quality
and effectiveness of production processes.
• P = Plan
• D = Do
• C = Check
• A = Act
Plan Do Check Act
Evaluate current Implement the Check whether If plan is working,
process plan for test basis plan is working implement this plan in
or not? process
Identify the Measure the Document the results
problem improvement
Develop the plan Go through cycle once
for improvement again for new problem
 Concept of Zero Defects
• Zero Defects concept is given by Philip Crosby.
• It is a business practice which aims
– To reduce and minimise the number of defects and errors in a
process and
– To do things right the first time.
• But technically it is not possible to attaining zero defects
in any size of manufacturing organization.
• According to Six-Sigma standard, the definition of zero
defects is defined as 3.4 defects per million
opportunities (DPMO)
 Total Quality Control Concepts
• Total Quality Control concepts was introduced by
Armand Feigenbaum.
• According to Feigenbaum 40% of the capacity of the
every factory is wasted.
• So he has given Total Quality Control Concepts to
minimize the waste.
• According to him quality developments are integrated
throughout the entire organization.
• Management and Employee both have total commitment
to improve quality and hence minimizing the waste.
 Lean Management
• Lean manufacturing (lean production) is a
systematic method for waste minimization within
a manufacturing system without sacrificing
productivity.
• Lean means no bad parts, no inventory, only
value-added activities, and no waste.
• Waste: Waste (Muda) means any activity in
process that does not add value to the product.
 There are seven types of waste
1. Defects: Producing defective products, results
rework.
• It requires additional time, resource and money to
fix the issues.
2. Over production: Producing product more than
what customer has order.
• This will add holding cost.
3. Waiting: The act of waiting of machine or worker
due to any reason.
• Wastage of machine and worker time
4. Transport: Unnecessary movement of products
between work stations.
This is the waste caused by moving things around.
5. Excess inventory: Excess raw materials, excess
work-in-progress (WIP) inventory.
6. Motion waste: Unnecessary movement of person
and machine while conducting operation.
7. Excess processing: Conducting operations more
than required.
 Kaizen Approach
• Kaizen is an approach for continuous process
improvement.
• Kaizen is a Japanese term meaning "change for the
better“
• Kaizen is made-up of two character
Kai + Zen

Change Good

• Means ‘change for good’ or you can say ‘change for

better’.
• It means that small change in method, machine and
materials leads to improvement in performance of
product.
• Toyota (the Japanese automobile company) was the one
who started this approach.
• Example: Previously for reverse movement of the Car,
Car driver has to look back or has to look mirror.
• Judgment is difficult, may cause damage to car or
accident.
• But now camera at back side and LED screen in mirror
shows the picture of back side. By this improvement
judgment become easy.
• Possibility of accident and damage reduced.
 Six Sigma
• Six Sigma (6σ) is set of techniques and tools for process
improvement.
• Six Sigma improve the quality of product by identifying
and improving the cause of defects.
• It is started by Motorola in 1986.
• In India Six Sigma approach is followed by companies
such as Cummins India, TCS, BHEL, Tata Motors,
Reliance, Asian Paints.
• Six Sigma allows not more than 3.4 defects per million
opportunities (DPMO), which gives 99.99967% accuracy.
• There are two type of Six Sigma approach
– DMAIC and
– DMADV.
• The Six Sigma DMAIC approach (define, measure,
analyze, improve, control) is an improvement system for
existing processes.
• The Six Sigma DMADV process (define, measure,
analyze, design, verify) is an improvement system used
to develop new processes.
 ISO
• ISO stands for International Organization for
Standardization.
• It is an independent, non-governmental international
organization with a membership of 161 national standard
bodies.
• It was founded in 1946 in Geneva, Switzerland, where it
still based.
• ISO developed a series of international standard for quality
systems. Some of them are as follow:
– ISO: 9001 For Quality Management (Customer Satisfaction)
– ISO: 14001 For Environment Management
– ISO: 5001 For Energy Management
– ISO: 31001 For Risk Management
• ISO provides guidance and tools for organizations who
wants to certify their product and services.
• The ISO doesn't certify organization itself.
• To become certified, you need to contact a third-party,
that will audit your organization and determine whether
or not your process, product and services fulfill ISO
criteria.
• Most company begin with ISO-9001 certification, which
is the basis of for most of other standards.
 Cause and Effect Diagram
• It is developed by Kaoru Ishikawa in 1943.
• It is also called Ishikawa diagram and fishbone
diagram because of its shape.
• It is graphical tool that helps to identify, sort, and
display possible causes of a problem or possible
causes of defective product, so that it can be
corrected.
• The effect (problem) is shown at the right (like
fish’s head), with the causes extending to the left
(as fish-bones).
• Causes can be identify through brain-storming
with a group of people who are familiar with
problem.
• Causes are typically separated in to categories of
people, process, machines, materials.
• Once the all possible cause are identified, they
can be used to developed solution for the
problem.
Consider the example of Car Failure
 Control Chart
• Control Chart is a graph used to monitor the variations
of items produced.
• These are certain specification of each process
characteristics.
• If sample falls outside of the pre-specified limit
(specification) then the process is out of control and
there is need to take action to find the cause of the
problem.
• If sample fall inside the specification then the process is
in control.
• A control chart always has a central line that represents
the mean value for control process.
• Two other horizontal lines, called Upper Control Limit
(UCL) and Lower Control Limit (LCL) are also shown
in figure.
• These controls limits are decided by client and customer
of product.
Types of Control Chart
 Control Chart for Variables
• Control chart for variables means a product characteristic
that can be measured and has a continuum of values
(e.g., height, weight, or volume).
Example:
o Soft drink volume
o Diameter of plastic pipe
o Weight of a bag of sugar
 Control Chart for Attributes
• Control Chart for attributes is used to monitor a product
characteristic that has a discrete value and can be
counted.
• Control chart for attributes are used for quality
characteristic that are counted rather than measured.
• Attributes entail simple yes or no decision.
Example:
o No. of non-functioning bulb
o No. of broken bottle
o No. of defective tiles