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TABLE OF CONTENTS
LECTURE 1:INTRODUCTION TO QUALITY MANAGEMENT ................................ 3
INTRODUCTION .................................................................................................................. 3
VIEWS ABOUTQUALITY................4
DIMENSIONS OFQUALITY.6
LECTURE 2 TOTAL QUALITY MANAGEMENT ....................................................... 10
DIFFERNCE BETWEEN TQM AND TRADITIONAL MANGEMENT......14
COST OF QUALITY .15
LECTURE3: CUSTOMER QUALITY19
MEANING OF CUSTOMER...19
CUSTOMER FEEDBACK...21
SERVICE QUALITY....21
LECTURE 4: CONTINOUS PROCESS IMPROVEMENT..26
MEANING OF CONTINOUS PROCESS IMPROVEMENT.26
HOW TO MAKE IMPROVEMT......27
KAIZENPHILOSOPY..30
LECTURE 5: LEADERSHIP AND TOTAL QUAL I TY M ANAGEM ENT.....33
INTRODUCTION AND QUALITIES OF QUALITY LEADERS..32
MISSION AND QUALITY POLICY...36
EMPLOYEE INVOLVEMENT39
LECTURE 6: PROPONENTS OF TOTAL QUAL I TY M ANAGEM ENT...41
CONTRIBUTIONS OF DR EDWARD DEMING........43
CONTRIBUTIONS OF DR JOSEPH JURAN......46
KORU ISHIKAWA..50
Customer satisfaction
This requires management of all activities of the organization in an effective and efficient way
the definition of quality depends on the role of the people defining it. Most consumers have a
difficult time defining quality, but they know it when they see it.
Think about how difficult it may be to define quality for products such as airline services, child
day-care facilities, college classes,
Today, there is no single universal definition of quality. Some people view quality as
performance to standards. Others view it as meeting the customer s needs or satisfying the
customer.
Fitness for use
This is a definition of quality that evaluates how well the product performs for its intended use.
Value for price paid
Quality defined in terms of product or service usefulness for the price paid.
Support services
Quality defined in terms of the support provided after the product or service is purchased.
Conformance to specifications Fitness for purpose Customer satisfaction
Quality = Performance x Expectations
Producer s view
conformance to requirements (Crosby)
Government s view
products should be safe
not harmful to environment
Determinants of quality
Manufacturing quality supply chain
Tangible quality products starts at conception and continues as the product moves from design
to production packaging , transportation to outlets purchase and use by final consumers . Abreak
in the link of chain affects the quality of the final product
Development and design
The first point to consider quality is at the point at which the product is conceived and designed.
It is difficult to rectify a poorly conceived product at the production stage
Design determines the products reliability, durability and how the product is offered
Purchase of law materials
Raw materials must be according to specification and if not it will impact the quality of the final
product
Manufacturing
Employees at the work floor must be conscious about quality of the in a product. If a defect is
detected, an employee has the responsibility of to stop the production line until the cause of the
defect is detected
Finished products
Quality must include the packaging, shipping and if necessary the installation of products
Service quality chain
This chain exist in services and it s often shorter because the company s personnel deal directly
with clients than in the case of manufacturing
Communication
Poor communication between concerned parties in an operation can result in perceived poor
quality.
1.3.3 DIMENSIONS OF QUALITY
Dimension 1: Performance
Does the product or service do what it is supposed to do, within its defined tolerances?
Performance is often a source of contention between customers and suppliers, particularly when
deliverables are not adequately defined within specifications.
The performance of a product often influences profitability or reputation of the end-user. As
such, many contracts or specifications include damages related to inadequate performance.
Dimension 2: Features
Does the product or services possess all of the features specified, or required for its intended
purpose?
While this dimension may seem obvious, performance specifications rarely define the features
required in a product. Thus, it s important that suppliers designing product or services from
performance specifications are familiar with its intended uses, and maintain close relationships
with the end-users.
Dimension 3: Reliability
Will the product consistently perform within specifications?
Reliability may be closely related to performance. For instance, a product specification may
define parameters for up-time, or acceptable failure rates.
Reliability is a major contributor to brand or company image, and is considered a fundamental
dimension of quality by most end-users.
Dimension 4: Conformance
Does the product or service conform to the specification?
Quality Hierarchy
Organizations have been using various ways over a time in assessing the quality of their
products and services. The figure below clearly shows how organizations have been progressing
in assessing quality
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Figure 1
TQM
Prevention
QUALITY ASSURANCE
QUALITY CONTROL
Detection
INSPECTION
Inspection of products
Features of quality
Quality is defined by the customer
Quality is the image of the company and customer confidence of the organization
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Summary
In this lesson we have learnt that:
Quality is important for organizations to succeed
The various definitions of quality and the determinants of quality
The dimensions of quality and the quality hierarchy
Activity
What is the importance of quality management?
As a quality expert in an organization, highlight the characteristics of quality
Define quality and explain the characteristics of quality
Explain the various dimensions of quality
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History of TQM
The concept of quality has existed for many years, though its meaning has changed and evolved
over time. In the early twentieth century, quality management meant inspecting products to
ensure that they met specifications. In the 1940s, during World War II, quality became more
statistical in nature. Statistical sampling techniques were used to evaluate quality, and quality
control charts were used to monitor the production process. In the 1960s, with the help of socalled quality gurus, the concept took on a broader meaning. Quality began to be viewed as
something that encompassed the entire organization, not only the production process. Since all
functions were responsible for product quality and all shared the costs of poor quality, quality
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Principles of TQM
1. Constancy of purpose: short range and long range objectives aligned
2. Identify the customers Customer orientation
3. Identification of internal and external customers
4. Continuous improvement
5. Workflow as customer transactions
6. Empower front-line worker as leader
7. Quality is everybody s business
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Traditional management
Stresses on customers
Quality is conformance to
specifications
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Result oriented
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Returned goods
Why measure costs
In order to measure the effects of the actions taken by the top management
Organizations have a critical role to play in ensuring that TQM to be successful in relations to
cost of quality. They therefore have to perform the following roles
Implement modifications
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TQM as a system
The figure below tries to explain how TQM is regarded as a system. As a system TQM has
objectives which are total quality management. The principles of TQM is customer focus,
continuous improvement
Objective
Principles
Elements
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TOTAL QUALITY
MANAGEMENT
CUSTOMER
FOCUS
PROCESS
IMPROVEMENT
TOTAL
INVOLVEMENT
Leadership
Education and Training,
Suppor tive structure,
Reward and recognition,
Communications,
Measurement techniques
Summary
In this lesson we have learnt that
Total quality management is how organizations manage its quality aspect to satisfy
customes
There is adifference between TOM and traditional management
Its important for organizations to measure cost of quality
Further reading
The importance of quality training
Activity
Clearly explain what you understand by total quality management
What are the obstacles that you are likely to experience in your organization while
implementing total quality management
Discuss the importance of total quality management
Differentiate between traditional management and total quality management
Explain what you understand of TQM as a process
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many small things geared to changing the customer s perception. Organizations emphasizing
on quality never stop and looking for ways of serving their customers better
4. WarrantyRepresents the organizations public promise of quality product backed up by
guarantee of customer satisfaction
5. Price- Today s customers are willing to pay more to obtain value. Customers compare
products of competing firms to determine greatest value providers
6. Reputation.-At times we rate organizations by our overall experience with them.
Today customers are ready to pay a higher price to obtain value. Therefore it becomes
increasingly important for an organization to identify, verify, and update each customer s
perception of value against those of its competitors
3.3.2 CUSTOMER FEEDBACK
Soliciting and monitoring customer feedback is very important for organizations to achieve their
objectives.
Customers continuously change, they change their mind,, their expectations and their suppliers
Customer feedback is an on-going probing of the customers mind
Importance of customer feedback
i. Discover customers dissatisfaction
ii. Discover relative priorities of quality
iii. Compare performance with competition
iv. Identify customers needs
v. Determine opportunities for improvement
Feedback has become important in services as well and they determine new product
development. Effective organizations listen to the voice of the customers even when the
customers are not complaining
Listening to the voice of the customers can be accomplished by various information collecting
tools. They include
Comment card
This is a low cost method of obtaining feedback from customers. This involves comment card
attached to the warranty card and included in the product at time of purchase. The intent is to get
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simple information such as name address age, occupation and what influenced the customer to
make the purchase. There is little incentives for buyers to respond to this and the quality of the
response may not provide a true measure of customer satisfaction
Customer questionnaire
This is a popular tool for obtaining opinions and perceptions about organizations and its
products and services. This method can be costly and time consuming.
Focus Group
This is a popular way of obtaining feedback but it can be expensive too. This is important in
gathering information on the customers expectations and requirements. It tries to find out what
the customers are thinking a bout
It involves a group of customers assembled in a meeting room to answer a series of questions.
The carefully structured questions are asked by skilled moderators who have a clear
understanding of information needed
Toll free telephone numbers
This is an effective technique of receiving complaint feedback. Organization can respond more
quickly and cheaply to the complaint. Such numbers only reach those who buy particular
products
Customer visits
A visit to the customer s place of business is another way of gathering information. The
performance of the product needs to be monitored to know how it performing. Senior managers
need to be involved in these visits.
Report card
This is also an effective information gathering tool. It s usually sent to each customer on a
quarterly basis data is analyzed to determine areas of improvement
The internet
Some managers monitor discussion taking place in the internet to find out what customers are
saying about their products. Monitoring internet conversation is timely; cost is minimal and can
be a source of creative ideas
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Employee feedback
Employees are untapped source of information. Organizations more often listen to the voice of
the customers ignoring employees.
Employees can offer insights to conditions affecting quality in organizations. They can
brainstorm ideas and come up with solutions to problems identified by customers.
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Summary
In this lesson we have learnt that
Customer is the main focus of total quality management
There are various methods of collectingfeedback from customers
TQM is not only avvailable in products only but can also be applied in services.
Activity
Explain the meaning of customer and how customers influence quality of products
and services
Explain the determinants of service quality
Explain the tools you will use to collect information
Explain the service quality and why its difficult to measure service quality
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Ways of improving
Reduce costs
Reduce errors
Meet or exceed expectations
Make processes safer
Improvement strategies
1. Repair
Short or long term
2. Refinement
3. Renovation
4. Reinvention
Phases of continuous process improvement
Identify opportunity
Analyze the current process
Develop optimal solutions
Implement changes
study the results
Standardize the solutions
Plan for future
There are a number of tools for process improvement. We are going to describe first seven is
known as seven basic quality tools. These are
Check sheets
Flowcharts
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Scatter Diagrams
Histogram
Pareto Analysis
Control Charts
Cause and effect Diagram
4.3.2 KAIZEN
Kaizen is a Japanese philosophy which encourages small improvement day after day
continuously. It is an on-going never ending improvement process
Kaizen is a Japanese workplace philosophy which focuses on making continuous small
improvements which keep a business at the top of its field. Many well-known Japanese
companies such as Canon and Toyota use kaizen, with a group approach which includes
everyone from CEOs to everyone on the factory floor. This group approach has been adopted
successfully in other regions of the world as well, but Japanese workers have refined it to an art
form.
It has been suggested that kaizen works particularly well because Japan is a collective culture,
and kaizen relies on collective values. People in more individualistic cultures may struggle with
some of the basic principles of kaizen. Kaizen also suggests that everything constantly has room
for refinement and improvement, and this value is contrary to the beliefs of some Westerners.
Principles of Kaizen
There are five underpinning principles to kaizen.
1.) The first is a heavy reliance on teamwork, in which everyone's opinion is valued and
considered.
2.) Workers also have strong personal discipline, and morale in factories must improve under
kaizen.
3.) Workers should also be confident about offering suggestions for improvement, even
when a system appears to be functioning adequately;
4.) kaizen recognizes that there is always room for improvement.
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5.) Finally, the system uses quality circles, groups of workers who meet and work together
to solve problems and come up with innovative changes.
One of the primary goals of kaizen is eliminating waste, considering both the process and the end
results. In addition, it encourages big picture thinking, with employees considering how their
actions impact the whole. It also fosters a culture of learning and experimentation without
judgment and blame, with all workers understanding that their opinions are important and useful
to the overall system.
Types of Wastes
Overproduction: This is one of the worst wastes. Too much is as bad as not enough
Waiting: Having machines and people and other resources standing idle unutilized
Transportation: Excess movement of people materials and products
Processing: Doing additional process to correct the previous process
Inventory: Includes unfinished products work in process and raw materials. These ties up money
space and labour
Motion: Excess motion takes up excess time. The use of natural limited motion is recommended
Quality defects Tis requires additional resources to redo what not done right the first time. This
results to loss customer satisfaction and loss of business
All Kaizen methods have the following in common
Involvement of all workers who execute the process
Focus on improving the performance of work process
Seeks to make incremental improvement
Improvements are intended to be repeated over a time
Kaizen is constant. Unlike many Western workplace improvement systems, it is not a problem
based approach. Workers come up with new ideas and submit them all the time, and quality
circles meet frequently. Any hiccup on the factory floor results in the meeting of a quality circle
to talk about the issue and discuss changes to implement. As a result, Japanese companies are
continuously becoming more efficient and streamlined, allowing them to effectively compete
with other companies which also integrate the kaizen philosophy into their daily practice.
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Summary
In this lesson we have learnt that
Continous process improvement is critical for TQM to suceed
Kaizen is a japannese philosophy which is concerned with continous improvement
Activity
Continuous process improvement can be regarded as total quality management. Explain
Explain the fundamental principles of Kaizen
Explain the meaning of continuous process improvement
Discuss the wastes that kaizen intends to eliminate
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Meeting these goals might give the company an edge over competitors, eliminate the cost of
correcting mistakes, and increase productivity.
To be effective in total quality management leadership, managers typically write a mission
statement outlining the principles, values, and beliefs of the organization. They ensure the
mission statement is shared and understood by every person employed in the firm. Leaders also
develop strategies for implementing plans to improve customer relations and explain these
techniques to lower-level supervisors.
One factor that determines total quality manager leadership effectiveness centers on the ability to
gain acceptance of these principles from all employees. Senior managers who serve as good role
models for subordinates might see more success in motivating others to embrace a TQM system.
They are responsible for ensuring every employee embraces the concept and commits to change.
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4. They emphasize prevention on anything that can affect the organization from achieving its
objectives
5. They encourage collaboration rather than competition between functional areas,
departments and work groups
6. They train and coach rather than direct and supervise. Leaders know that it is essential to
develop human resources. They help subordinates learn how to do a better job.
7. They learn from problems. When problems exist its treated as an opportunity to learn.
They ask question such as what caused it and how can we prevent it in future.
8. They continually try to improve communication. They disseminate information about
TQM continually. Communication is the glue that holds TQM together
9. They continually demonstrate their commitment to quality. The let the quality statement be
their decision making guide
10. They choose suppliers on the basis of quality and not price. Leaders know that quality
begins with quality raw materials
11. They establish organizational systems to support quality effort. At the senior management
level the quality council is established and at the first line supervisor level work groups
and project teams are organized to improve the process
12. They encourage and recognize team efforts. They encourage, provide recognition and
reward individual teams
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Encourages improvement
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Quality Council:
In order to build quality in the culture, a quality council is established to provide overall
direction. It is the driver for the TQM engine. In a typical organization the quality council is
composed of the chief executive officer(CEO); the senior managers of the functional areas, such
as design, marketing, finance, production, and quality; and a Coordinator or consultant.
Quality council is established to build quality into culture and provide direction
The duties of the quality council:
a) To develop the vision, mission and quality statement of the organization, with the input from
all the personnel.
b) To develop strategic long-term plan with goals and annual quality improvement program with
objectives.
c) Create a total education and training plan.
d) Determine and continuously monitor the cost of poor quality.
e) Determine the performance measures of the organization and monitor.
f) Continuously determine those projects that improve and affect external and internal customer
satisfaction.
g) Establish multifunctional project and work group teams and monitor their progress.
h) Establish and revise the recognition and reward system to account for the new way of doing
business.
The typical quality council meeting agenda of a well-established TQM organization:
a) Progress reports on teams
b) Customer satisfaction report
c) Progress on meeting goals
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working relationships. Each sees the other as mutually benefiting from their working
relationship. In addition, more self-governance in the workplace lessens dependence on
managers and supervisors and redirects that reliance laterally to coworkers.
4. Innovation. Employee empowerment cultivates innovation, as employees that have a stake in
company growth and sustainability will offer more ideas and problem-solving solutions when
obstacles arise. As the employee meets particular challenges or finds improvements in
policies, procedures or products, it will foster growth and more critical and imaginative
thinking. Employees can offer different perspectives thana managers, and be able to offer a
creative solution not otherwise considered by staff
5. Making decisions Employees are better able to make decisions using their expert knowledge
of the process
6. Supporting decisions Employees are more likely to implement and support decisions they
had apart in making
7. Areas of improvement Employees are better able to spot and pinpoint areas of improvement
8. Acceptance of change Employees are able to accept change because they are involved
9. Increased commitment Employees have increased commitment because they are involved
Summary
In this lesson we have learnt that
Quality leaders are important for the sucess of TQM
Quality policy and misision stataments are critical instruments for TQM sucess
Employee involvement enhances total quality management
Activity
Explain the important role of quality leaders
Define quality council and the role they play in an organization
Explain the characteristics of quality leaders
Discus why it is important to involve employees in total quality management
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Theory of Profound Knowledge -- In order to promote cooperation, Deming espouses his Theory
of Profound Knowledge. Profound knowledge involves expanded views and an understanding of
the seemingly individual yet truly interdependent elements that compose the larger system, the
company. Deming believed that every worker has nearly unlimited potential if placed in an
environment that adequately supports, educates, and nurtures senses of pride and responsibility;
he stated that the majority--85 per cent of a worker's effectiveness is determined by his
environment and only minimally by his own skill.
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Deming is popularly known for his fourteen principles of quality. His 14 principles
emphasized on the following
1. Top management strong commitment to quality
2. Process design and control through statistical tools
3. Continuous search for and correction of quality problems
4. Pursuing a policy that emphasizes quality rather than cost
5. Removing of barriers to employee participation and teamwork
6. Effective communication between employees and supervisors
7. Elimination of numerical goals and quotas for employees
8. Companywide training and education quality
9. Education and training managers on the use of statistical techniques
10. Importance of quality design and information syste
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number of suppliers for the same item by eliminating those that do not qualify with
statistical and other evidence of quality. The aim is to minimize total cost, not merely initial
cost, by minimizing variation. This may be achieved by moving toward a single supplier for
any one item, on a long term relationship of loyalty and trust. Purchasing managers have a
new job, and must learn it.
5. Improve every process: Improve constantly and forever every process for planning,
production, and service. Search continually for problems in order to improve every activity
in the company, to improve quality and productivity, and thus to constantly decrease costs.
Institute innovation and constant improvement of product, service, and process. It is
management's job to work continually on the system (design, incoming materials,
maintenance, improvement of machines, supervision, training, retraining).
6. Institute training on the job: Institute modern methods of training on the job for all,
including management, to make better use of every employee. New skills are required to
keep up with changes in materials, methods, product and service design, machinery,
techniques, and service.
7. Institute leadership: Adopt and institute leadership aimed at helping people do a better job.
The responsibility of managers and supervisors must be changed from sheer numbers to
quality. Improvement of quality will automatically improve productivity. Management
must ensure that immediate action is taken on reports of inherited defects, maintenance
requirements, poor tools, fuzzy operational definitions, and all conditions detrimental to
quality.
8. Drive out fear: Encourage effective two way communication and other means to drive out
fear throughout the organization so that everybody may work effectively and more
productively for the company.
9. Break down barriers: Break down barriers between departments and staff areas. People in
different areas, such as Leasing, Maintenance, Administration, must work in teams to tackle
problems that may be encountered with products or service.
10. Eliminate exhortations: Eliminate the use of slogans, posters and exhortations for the work
force, demanding Zero Defects and new levels of productivity, without providing methods.
Such exhortations only create adversarial relationships; the bulk of the causes of low
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quality and low productivity belong to the system, and thus lie beyond the power of the
work force.
11. Eliminate arbitrary numerical targets: Eliminate work standards that prescribe quotas for
the work force and numerical goals for people in management. Substitute aids and helpful
leadership in order to achieve continual improvement of quality and productivity.
12. Permit pride of workmanship: Remove the barriers that rob hourly workers, and people in
management, of their right to pride of workmanship. This implies, among other things,
abolition of the annual merit rating (appraisal of performance) and of Management by
Objective. Again, the responsibility of managers, supervisors, foremen must be changed
from sheer numbers to quality.
13. Encourage education: Institute a vigorous program of education, and encourage selfimprovement for everyone. What an organization needs is not just good people; it needs
people that are improving with education. Advances in competitive position will have their
roots in knowledge.
14. Top management commitment and action: Clearly define top management's permanent
commitment to ever improving quality and productivity, and their obligation to implement
all of these principles. Indeed, it is not enough that top management commit themselves for
life to quality and productivity. They must know what it is that they are committed to-that
is, what they must do. Create a structure in top management that will push every day on the
preceding 13 Points, and take action in order to accomplish the transformation. Support is
not enough: action is required
Jurans definition of quality is fitness for use. The fitness can be achieved through quality of
design, quality of conformance, availability and field service
Juran highlighted the managerial responsibility for quality and emphasized that quality is
achieved through people rather than techniques
Juran advocated analysis and synthesis of cost of quality to identify areas of improvement
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Cause-and-Effect Diagrams
Cause-and-effect diagrams are charts that identify potential causes for particular quality
problems. They are often called fishbone diagrams because they look like the bones of a fish. A
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workers
Machines
Poor quality
Environment
Materials
processes
Summary
In this lesson we have learnt that
TQM has not emerged intantly but numerous effort and reserach from various scholars.
Cause and effect as a quality tool can be used in enhancing total quality management
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Activity
Clearly demonstrate how Edward Deming and Joseph Juran have contributed in quality
management
Explain the cause and effect diagram
Explain the fourteen principles of Deming route to quality
Discuss Jurans proposal for quality management
References
Samwel. K. TQM an integrated approach, New Delhi Crest Publishing House
Dale Besterfield, Carol Bersterfield, Glnh Besterfield ,Total Quality Management, New
Delhi New Age International Pvt Ltd, 2004
Aqualino chase Jacobs Operation Management for Competitive Advantage New Delhi Tata
McGraw Hill, 2004
Waller Derrick Operation management, chain supply approach, Italy international Thomson
1999
Smith Steve The quality revolution Jaico publishing house 2002
Greig, York, Adams, Ranney Beyond Total Quality Management, New York Mcgraw
hill,1994
Anand k. kailash, High quality at economic cost, New Delhi, Sage Publications Pvt Ltd, 2003
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