Unit 3 Total Quality Management: Objectives

Total Quality Management
UNIT 3 TOTAL QUALITY MANAGEMENT

Objectives
After going through this unit, you should be able to understand:
Quality is a qualifier
How TQM emerged
Difference between QC, QA, TQC and TQM
The various terms and their relationships
Voice of the customer
Quality function deployment (QFD)
House of quality (HOQ) Identifying the process
Measuring processes Cost of quality
Organized problem solving Improving the process
Process capability studies o Importance of employee participation and

empowered decision making in TQM
What a quality systems standard means
Structure
3.1
Introduction
3.2
TQM: A Historical Perspective
3.3
Quality Terminology
3.4
Understanding the Customer
3.5
Understanding and Improving the Process
3.6
Employee Involvement and Empowerment
3.7
ISO 9000: The International Quality System Standard
3.8
Summary
3.9
Self-Assessment Exercises
3.10
Further Reading
3.11
Appendix: ISO 9000 Quality System Standards
3.1
INTRODUCTION
Total Quality Management (TQM) is a systems approach to ensuring quality in an

organization. TQM is not just quality control or quality assurance. Nor is it limited to
the boundaries of a Total Quality Control system. It is a dynamic process with a
strong philosophical base which incorporates many of the concepts upon which Total
Quality Control Systems are based. The emphasis is on involving everyone in the
organization in activities which provide for continuous never-ending improvements.
Quality activities are planned and managed into the system and are oriented towards
the achievement of complete customer satisfaction. The liberalized economy is
forcing Indian companies to establish Total Quality Management Systems. It is a
struggle which has just begun and Indian companies will continue to do so just to be
in the race - lest they perish. Quality will be just a qualifier, not a competitive
advantage anymore.
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Issues in Production/
Operations Management
TQM ettorts are led by top management by involving everyone in the company with
the prime objective of satisfying the external customer. This focuses the
organizational efforts towards satisfying the internal customer with the help of a
quality management system for ' doing things right the first time. The traditional
approach of post-production detection of defects is discouraged and a prevention
philosophy is adopted to bring down the nonconformances. The organization seeks
continuous never-ending improvements which are tracked with the help of
appropriate measurement systems.
In this chapter the focus will be on understanding the customer and the process and
then satisfying the customer by improving the process through total involvement of
employees. After a brief historical perspective on. TQM and its relevance to Indian
organizations (Section 3, 2), we will define the various terms relevant to quality
management (Section 3.3).
TQM organizations focus on understanding and responding to the needs of the
customer. The voice of the customer is clearly identified and then deployed
throughout the organization with minimum of distortions. In section 3.4, we will
discuss the techniques used to identify customer satisfaction and their expectations.
We will understand what Quality Function Deployment (QFD) means and what is a
house of quality.
In most organizations there are different functions which are geared towards
supporting the core manufacturing (or service) process. Functions, such as, design,
engineering, marketing, finance, systems, R&D, administration, health care and so
on. All these functions can be seen as processes which are designed to satisfy
customer needs. All processes have variations which need to be controlled and then
improved in a never ending cycle of efforts aimed at continuous improvement. In
section 3.5, we will discuss how to get into the path of continuous improvement.
Various problem solving tools will be presented. Procedures will be explained for
identifying major nonconformances and therefore the major problem areas. Since we
are aiming for continuous improvement, measurement systems for monitoring the
quality performance will be discussed. We sketch out a measurement framework for
identifying nonconformances. We will also understand what cost of quality means
and how to establish a measurement system.
Even though customers are the driving force behind the process, without total
employee involvement (in terms of alignment, motivation and empowerment) and top
management leadership, the TQM efforts become futile. Methods need to be adopted
to stimulate total involvement and move toward the common goals of systematic and
continuous improvement with the ultimate aim of satisfying customers, employees
and stakeholders. These aspects will be discussed in section 3.6.
Before concluding, in section 3.7, we will introduce an International quality systems
standard called ISO 9000. Even though a TQM organization is beyond ISO 9000, the
exercise undergone for getting the quality systems certification brings in the
discipline much needed for a organization practicing TQM:
3.2
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TQM: A HISTORICAL PERSPECTIVE
Quality management systems have evolved through quality control (QC), quality
assurance (QA), and total quality control (TQC) systems to total quality management
(TQM) systems. We will briefly sketch out each of these systems.
Quality control is concerned with defect detection by using post-production
inspection procedures. Statistical quality control techniques are used while inspecting
the finished goods. Main focus is on the product i. co what is wrong with the product
(or part). Techniques such as acceptance sampling, control charts, control by
attributes and control by variables are typically used by the QC inspectors while
controlling the quality of goods manufactured. The extent of employee involvement
is minimal. Only few inspectors from the QC department are involved in quality
control activities. It takes a real short time (within days) to install a QC system.
However, such systems do not help identify problems.
Quality assurance systems aim to produce as per design specifications and emphasize
defect prevention. Quality is built into the system (that produces the product) by using
production and operations management principles. Statistical process control techniques
are used to monitor the process by allowing random variations and eliminating non
random variations. Main focus is on the process -i.e., what is wrong with the process
which manufactures the product. Quality system standards (such as ISO 9000) are
adopted to assure quality in the process. ISO 9000 is an International systems
standard which shows how an organization can establish, document and maintain an
effective quality system. It helps demonstrate to the customer that the organization is
committed to quality and has the ability to meet their requirements. The employee
involvement is limited within the centralized-staff function of the QA department. It
takes between six to twelve months to install such a system. The main theme her is to
document (with well defined procedures) what you do and do what you document.
Total quality control systems are concerned with cost reduction efforts as a drive
towards continual improvement. Here quality is organized into the system. These
systems take off once the cost of quality is calculated. Problem areas are identified
and problem solving techniques are used extensively during the continuous
improvement cycle. Performance is monitored with the help of the COQ system.
These efforts enhance the product quality. Here waste identification and removal is
an important benefit. Philip Crosby's zero defects program (Table 3.1) is a TQC
approach. So is the Taguchi methodology which emphasizes the importance of a
robust design to take care of all downstream fluctuations. In TQC systems we have
more involvement in the form of various quality circles working towards improving
the processes. Time to install is between one to three years. It may be noted that QA
standards form the basis for a TQC or TQM approach.
Total quality management systems manage quality in. They have a strong
philosophical base that incorporates several important concepts of TQC systems.
Management efforts are oriented towards the achievement of complete customer
satisfaction. Here we find an organization wide responsibility for quality. Time to
install is three to five years. The evolution shows a culture change in the organization
which achieves customer orientation through various stages of development that
progress through a systems oriented to an improvement oriented to a prevention
oriented state.
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Figure 3.1 and Table 3.1 show how TQM emerged over the century and who were
the quality gurus who were responsible for the status this philosophy commands
today. The progress from quality control to quality assurance to total quality control
to total quality management took almost a century of concerted efforts from quality
gurus, such as, Walter Shewhart, W. Edwards Deming, Joseph Juran, Kaoru
Ishikawa, Genichi Taguchi, Armand Feigenbaum, and Philip Crosby. The quality
movement was initiated in Japan by Deming and Juran. It was later picked up by the
Japanese who have made the quality movement a big success story. Around the 80s
Japanese companies, on a continuous cycle of never-ending improvements, surpassed
the west. They captured the markets with their consistent: quality products and have
now shifted their priorities on to satisfying customers with products having high
quality at low price.
We will take a. brief look into the Indian scenario. According to the World
Competitiveness Report (1994) Indian companies lag far behind their global
competitors in terms of customer orientation, time to innovate, time to market and, in
general, in terms of TQM practices. Under the liberalized scenario, it is more of a
concern because the global players are now entering the Indian market. We may be
having global capacities in some cases but we fail in terms of global quality For us it
is a Catch 22 with a difference-if we don't practice TQM we die; If we practice TQM
we struggle to survive (vie may not surpass but we do survive and may be succeed). I
used the word survive because our competitors are already much superior to us in
terms of quality practices. For example global players may be having component
rejection rates of I in 10,000 while Indian companies are struggling with rejection
rates of I in 100. A case in point is the US based company Motorola, which has made
the slogan six sigma quite famous by targeting 99.99997% defect free manufacturing.
According to a 1995 Business Today survey, Indian plants have trouble achieving
even 95% defect free manufacturing. In most cases the burden of high rejection is
passed on to the customer. But with liberalization becoming a reality the customer
has a choice. And companies have to listen to the voice of the customer to drive their
quality initiatives. With mass customization becoming a goal of most quality
programs, there is a lot of pressure on the Indian companies. There is a need, in most
sectors, for instant translation of new designs into finished products with no defects.
3.3
24
QUALITY TERMINOLOGY
In this section we will define some of' the terms which are normally used in TQM
classes. We will try to understand the meaning of quality , customer, product, quality of
design and
quality of conformance (relationship between product and customer through quality)

quality cost, quality measurement (relationship between quality and cost), value
addition, small q, big Q, non-conformances and rework' (relationship between quality
and productivity).
Quality: There are several definitions of CK word. For example:

"Quality is customer satisfaction"
"Quality means meeting customer requirements"
"Quality means fitness for use"
"Quality is conformance to specifications"
"Totality of features and characteristics of a product or service that bear on
its ability to satisfy stated or implied needs"
Customer: "Anyone who is impacted by the product or service". By this definition
we find that there are several customers waiting down the line when a product is
being processed through several stages in an organization before it reaches the final
consumer. Thus we have people who are impacted within the organization and also
people impacted outside the organization. Thus we have two type of customers - the
internal customers and the external customers.
External customer: One who purchases a commodity or service. External customers
are the driving forces behind an organizations business. Figure 3.2 below shows the
external customer.
Internal customer: Any individual (or group or organization) who receives and uses
what an individual (or group or organization) provides (see Figure 3.2). Should
section I meet the needs of section 2? What happens to section 2, if the section 2
requirements (in terms of quality specifications) are not met by section l? What if
section 1 is not capable of meeting section 2 needs? Should the section I work in that
case be outsourced? That would mean making section 1 redundant Taking another
example, manufacturing departments are internal customers of product design and
development departments. If the design department supplies engineering designs that
are not producible by the manufacturing department then the internal supplier
customer relationship suffers. The supplier here is unable to satisfy its internal
customer. Should manufacturing somehow produce it over-riding the design
specifications? How would it affect the overall quality of the product in that case? Or
should design sensitize itself to manufacturing capabilities before developing
products intended for satisfying the external customer?
Hence, almost everyone in an organization has a customer. Satisfying the customer
(either extanal or internal) involves defining their needs and expectations and also
meeting them. Dissatisfied customers are lost opportunities. Studies have indicated
that dissatisfied customers express their dissatisfaction to other potential customers.
Moreover; developing new customers to replace dissatisfied ones is costlier than
retaining satisfied customers. Hence organizations must try their best to satisfy
customers by listening to their dissatisfaction and deploying their voice through the
organization so that the situations
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causing the dissatisfaction are remedied. A proactive stance is necessary in

identifying sources of dissatisfaction because when there are no complaints it does
not necessarily mean that there are no dissatisfactions. Typical methods used are
surveys, questionnaires, follow-up phone calls and so on.
Product: Output of any process. Classified into goods, software and services.
Quality and Customer Satisfaction: We achieve customer satisfaction with the help
of several product features. Or through products that are free from deficiencies.
Products having good features meant to attract customers are said to have good
quality of design. The various dimensions of design quality could be performance,
reliability, durability, ease-of-use, serviceability, aesthetics, availability of options
(additional features and expandability), and reputation. In a service setup the
dimensions are accuracy, timeliness, completeness, friendliness, anticipating
customer needs, knowledge of server, aesthetics and reputation. Hence they have the
capabilities of commanding high price and share and therefore earning higher
revenue. On the other hand products having less deficiencies are said to have good
quality of conformance. Lower deficiencies are achieved through waste reduction
leading to lower costs thereby yielding higher profits. Freedom from deficiencies or
conformance to standards are necessary at delivery, during use and during servicing.
In addition, other supporting business processes such as sales and billing should be
free from errors. Higher conformance means fewer complaints which implies greater
customer satisfaction. The net effect of improved quality of design and conformance
is increased profits (Figure 3.3).
Quality and Productivity: The focus of productivity is now shifting. The old
factory-oriented definition of productivity is "product (or service) output per unit of
resource input". The new market-oriented concept is "salable, good quality product
(or service) output per unit of resource input." The higher the value the better is the
productivity. Figure 3 uses the new definition of productivity.
Quality and Profitability: Profitability is driven by quality.
We know, profit = revenue - cost
and
revenue = price * quantity sold
Profit increases if revenue increases or cost decreases.

Revenue increases if price increases (quantity sold remaining constant)
or
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if quantity sold increases (price remaining fixed)
Quality and Cost: There are two debatable viewpoints regarding this relationship.
Both the views are justified depending on the frame of reference. Viewpoint 1:
Improved quality requires more expensive materials, additional labor, more precise
machines and therefore lead to higher costs. Viewpoint 2 : Improved quality is
possible through savings in rework, scrap and warranty expenses leading to decrease
in costs.
Value Addition: When raw material is processed in an organization, at each stage

there is a value addition taking place until it comes out as finished product (see Fig
3.2). In TQM organizations the value addition does not stop here. Rather it continues
right up to the customer. Figure 3.4 shows the definition of value.
Small q vs Big Q: The above discussions indicate a need for broadening the scope of
the quality function. The traditional approach which used to be product oriented was
based on the post-production defect detection philosophy. It used to serve well under
monopolistic situations where both the organization and the market were treated as
black boxes. But the big Q focus has a much larger scope with a strong customer
orientation that enhances the product quality by improving the process. The customer
is the driving force which provides the feedback for error free product development
and production. Error prevention philosophy is adopted and there is a high degree of
organizational learning which helps the organization to satisfy customers in a highly
competitive market.
Total Quality Management: Like quality there are several definitions of TQM. A
couple of them collected, from different texts are stated below. These definitions
summarize most of what we have been discussing so far.
TQM is the system of activities directed at achieving delighted
customers, empowered employees, higher revenues and lower costs.
Total quality is performance superiority directed at delighting the customers.
The means used are people, committed to employing organizational resources
to provide value to customers, by doing the right things right the first time,
every time
Note user-based definitions ought to be translated into product-based definitions
which are be supported by manufacturing based definitions.
Activity A
Describe how increased market share and profitability might result from improved
quality in your organisations.
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Activity B
Select one staff department (e.g. accounting, finance, marketing services, human
resources) and describe how this department can deliver quality service to its internal
customers.
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Activity C
How would an organisation's commitment to quality facilitate or improve the
following:
- The planning Process
- Organisation
- Control
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3.4
UNDERSTANDING THE CUSTOMER
We have seen how customers are the driving force behind big Q efforts. We also
noted that virtually everyone has a customer. Understanding the stated and implied
needs of the customer is vital for any organization practicing TQM. We have to
translate the user based definitions of quality into product-based definitions. One
method of translating the voice of the customer into design specifications of a
product is quality function deployment (QFD). In this section we try to understand
what QFD is and how it is used by TQM organizations.
Quality Function Deployment
QFD is a method used to identify critical customer attributes and to create a specific
link between customer attributes and design parameters. It helps marketing and
design to answer three primary questions:
1.
What Attributes are critical to our customers?
2.
What design parameters are important in driving those attributes?
3.
What should the design parameter targets be for the new design?
Market driven companies having a sharp customer focus produce designs that are
responsive to customer needs and expectations. Most importantly these designs must
be producible with minimum of inter-departmental conflicts. We therefore need
procedures for listening to the customer and translating them into finished product
realities. QFD provides a cross functional approach which uses a planning tool called
"House of Quality" for organizing and linking the customer survey information with
the product design attributes and later deploying it in stages throughout the
organization. Customer feedback is used by the QFD team to make engineering,
marketing and design decisions. Each step in the QFD process involves building up a
section in the house of quality matrix thereby simplifying the presentation of a large
amount of data. The steps involved in building the house of quality are: (i)
identifying customer needs through market survey, (ii) identifying, customer
counterpart product characteristics, (iii) relating the customer attributes to product.
characteristics; (iv) evaluating product characteristics and developing targets, (v)
evaluating products of competitors by performing internal as well as external
comparisons, and (vi) determining which product features to deploy throughout the
production process. The matrix comprises of the following sections (see Figure 3.5):
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A WHAT section
A HOW section
A WHAT - HOW relationship section
A HOW MUCH section
A CORRELATION section (roof of the matrix)
IMPORTANCE RATINGS section
A CUSTOMER ASSESSMENT section
An ENGINEERING ASSESSMENT section
The process of developing the House of Quality involves :

a)
b)
c)
d)
e)
Establishing critical customer attributes for the product based on their

expectations and give them weights according to their importance (i.e., filling
the what section along with the importance rating column). This specifies the
voice of the customer. The importance to customer is shown alongside each
what in a scale of 1 to 10.
Establishing critical design parameters that drive system performance (i.e.,
filling the how section). Here product features are defined in measurable terms.
These are the operating characteristics that are likely to affect the customer
attributes. The how much section is also filled up to give the target values and
other technical specifications for each design attribute which are believed to
fulfill the desired customer attributes.
Establishing the relationship between the customer wants and the design
parameters (i.e., filling the body of the central relationship matrix). Each cell in
this matrix shows a relationship (either strong/weak or positive/negative)
between the customer attributes and design parameters. These relationships are
shown in the form of symbols. Importance weighting section shows the
significance of each design attribute as it is linked with the customer attributes
through the relationship matrix.
Identifying the inter-relationships between the various design parameters to
establish trade-offs (i.e., filling the roof matrix). There, may be either
strong/weak or positive/negative correlationships between the design features. If
there are strong negative correlations between features, we redesign the product
to eliminate such trade-offs.
Focusing on customer perceptions of the company's existing product compared
to its competitors. Here we fill in the customer assessment section. It
corresponds to the what column. These comparisons help in identifying our
strengths and weaknesses and can focus our attention to areas where we can get
a competitive advantage. This is external benchmarking which helps us study
the customers perception.
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f)
Focusing on the internal assessment by filling in the engineering assessment

section. It corresponds to the how column. Here we benchmark ourselves with
our competitors.
g)
Analyzing the matrix and choosing priority items. For example, if there is a
mismatch between the engineering assessment and the customer assessment, we
follow it up by revising the design requirements to meet the true customer
requirements. A mismatch may occur in situations where the internal assessment
puts us iii a superior position (as compared to our competitor), while the
customer assessments have rated us inferior on that particular requirement.
Several houses of quality are required in deploying-the voice of the customer. Figure
3.6 shows an example of how the voice of the customer can be deployed. QFD will be
most effective if we take a systems-approach to implementing quality practices in the
organization. Thus early involvement in the product development process with the help
of cross-functional teams is an absolute necessity to prevent problems downstream.
3.5
UNDERSTANDING AND IMPROVING TIME

PROCESS
In the previous sections we discussed who is a customer and what the voice of the
customer means to the company. In this section we will try to understand and identify
processes that can be aligned to<satisfy the customer needs. We will establish a
system to measure the performance of the process. We will present the seven QC
tools that will help us in identifying and solving major problems. We will understand
what process variability means and how to strive for continuous improvement by
reducing variability. We will then define the voice of the process by undertaking
process capability studies.
Identifying the .Process
In Section 3:3 we saw how organizational inputs are transformed through a series of
stages involving man, machine, method, materials and other resources into value added
outputs that are meant to satisfy customer needs. Figure 3.2 shows an organized series
of sequential stages representing a process that can convert a certain measurable input
into measurable outputs. The concept of a process is further defined in the Appendix
(see Fig A 1 and Fig A2). An important element here is the feedback that is essential
for process monitoring and improvement. These figures also identify the various groups
that are involved in the process namely customers suppliers and process owners. All of
them are responsible for the quality performance of the process.
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In TQM we try to identify the key processes on -which the success of the
organization depends. Key processes could be (a) processes that produce the most
important products wanted by customers, (b) processes having high visibility with
customers, or (c) processes having well defined problem areas indicating a high
potential for improvement. Once the processes have been identified the ownership
has to be assigned to fix authority and responsibility for maintaining, operating and
improving the process. Quality improvement is achieved through systematic and
continuous improvement of these key processes.
A framework for measuring the process
To know whether a system is improving or not we need to have a measurement framework

to monitor the system performance. Performance monitoring can be done by recording cost
of quality summaries. Quality costs include costs of assuring and ensuring quality- together
with the losses incurred through failures within and outside the organization. Cost of
quality can be broadly classified into cost of conformance and cost of nonconformance.
Cost of conformance includes costs of prevention and appraisal while cost of
nonconformance includes costs of internal and external failures. Appraisal costs are costs of
inspection, testing, verification and control at any stage in the process meant to ensure
acceptance of the product or process. Prevention costs involve costs of activities undertaken
to prevent or reduce the risk of nonconformity. Prevention activities include identification
of nonconformities, identification of their causes and also actions taken to remove such
causes. Thus prevention costs are incurred in getting things done right the first time.
Internal failure costs are due to defects and nonconformities that-are identified within the
organization. They include costs due to scrap, rework, repair, and re-test. External failure
costs are due to defects passing out of the organization. They include costs such as
warranty claims, loss of customer goodwill, replacement costs and so on. Refer the
recommended texts at the end of this chapter to get an exhaustive list of these quality
related costs. It has been estimated that quality costs account for 20 to 30 percent of a
company's revenue. Cutting down the cost of quality is the goal of TQM organizations. In
organizations implementing TQM prevention costs rise in the initial stages because of
investments in systems, processes, planning and training. Appraisal costs gradually reduce
because post production inspection activities are no longer necessary. As prevention
measures start taking effect the failure costs and the total quality costs start decreasing. This
is in contrast to the traditional quality measurements processes where quality products were
supposed to be delivered at high costs, Figure 3.7 shows the difference between traditional
quality and total quality concepts. Thus having a cost of quality system in place can help a
company track improvements over time.
We can also measure and monitor a systems quality improvement program by identifying
nonconformances. A nonconformance is any deviation from measurable quality specifications
that need to be satisfied. Quality improvement programs are most effective if we identify
nonconformances in terms of quantity and cost, and systematically strive to eliminate
dominant nonconformances. Nonconformance could be in one of the following several forms:
Defects (i.e., work not to specification)
Rework (i.e., work requiring correction)
Scrap (i.e., work thrown away)
Backlogs (i.e., work behind schedule)
Late deliveries (i.e., work after due date) '
Surplus items or over-production (i.e., work not required)
We need a well defined measurement system to capture nonconformances in a database.
Next we sort the data and identify dominant nonconformances (in different sections of
the organization) to prioritize quality improvement actions appropriately. We generate
summaries of : a) nonconformance quantities and costs, (b)scrap, rework and repair
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actions, (c) supplier performance, (d) product performance in the field and (e) cost of
quality. Then we undertake improvement activities to eliminate the nonconformances
as far as possible in a continuous cycle using various problem solving tools.
Activity D
Choose a manufacturing company and a service company. Identify a key activity for
improving quality in each.
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Activity E
Describe the elements of the TQM infrastructure.
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Organized problem solving
Problems have several viewpoint perspectives. Solving the problems in an organized
manner helps realize the maximum benefits. Organized problem solving assists
solvers to. analyze the causes thoroughly before jumping into conclusions. It helps
generate maximum ideas from members in a team.
The problem solving process involves understanding the existing process(es), and
collecting facts, figures and information to help define the problem. A problem well
defined is half solved. Data analysis is done and the assumptions are reexamined.
Techniques are used to generate ideas for developing potential solutions. All the
alternative solutions are evaluated and the best ones are selected and implemented.
Table 3.2 shows the steps involved in creative problem solving along with the
corresponding seven quality control tools.
Table 3.2: Creative Problem Solving and Seven QC Tools
Problem-solving Step
Useful Tools
Understanding the mess
Flowcharts
Finding facts (data collection)
Checksheets
Identifying problems
Pareto diagrams Histograms
Generating ideas
Cause-and-effect diagrams (or

Fishbone or Ishikawa diagrams)
Developing solutions
Scatter diagrams
Source: The Management and Control of Quality by J. R. Evans and W.M.Lindsay

Apart from these tools we have other
basic tools, such as, brainstorming,
grouping and stratification to help guide
the problem solving process.
Brainstorming is a group process in
which group members express their ideas
in a creative atmosphere. All ideas are
acceptable. The objective is to generate a
lot of ideas which can be further defined
in stages to identify the root causes of
problems.,Grouping.
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.helps in focusing the problem solving efforts. Sometime problems can be slated
in several different forms by different individuals. These can be grouped under
one key topic. This helps in summarizing rather long lists of problems into short
general categories on which problem solving efforts can be focused. Stratification
helps in breaking down data into
levels (for example, data collection by time, shifts, machines, stages etc.). Sometimes
it is more meaningful to analyze stratified data. Figure 3.8 shows an example where
we have a certain process consisting of three machines that are necessary for
processing a product. Suppose the final output has a wide variation in the quality
characteristic that is being measured. To identify the cause of this problem we collect
data at different stages in the production process and analyze them for variations.
Figure 3.9 shows simplified versions of the seven QC tools which can be applied to
almost any practical problem. Flowcharts are used to understand the larger process
and how each stage affects the other. They help identify all customers, activities,
problem areas and redundant operations (if any). Critical quality characteristics that
need to be controlled at the appropriate stages are also identified. Thus flowcharts
help in identifying quality problems and areas of productivity improvement.
Checksheets help collect and report data in a systematic manner. We use special data
collection forms and use tally marks to. collect the frequency of occurrences of
characteristics that affect quality. Figure 3.9 shows a portion of a checksheet where
the frequency data is being collected for a certain quality dimension of a product.
Histograms are graphical representations of the variation in a set of data. In processes
they help identify variations and their patterns. The tally marks in the checksheet are
arranged in the form of a histogram to show the distribution of the data.
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34
While drawing histograms samples have to be designed carefully so that they are
representative of the process (or the population). Pareto diagram is a histogram of data
(e.g. the various types of nonconformances) arranged according to their descending order
of frequencies. Pareto diagrams help segregate the major few problem areas from the
trivial many thereby short-listing potential projects for improvement. When tracked over
time they show the=results of improvement programs taking effect. Cause-and-effect
diagrams help identify causes for a certain problem (the effect) There could be various
categories of causes, such as, man, machine, material environment, method and so on.
Through brainstorming problem causes are listed under the various categories. Once the
various causes have been collected, those having the biggest impact on the problem are
identified. Scatter diagrams help identify the nature of the various cause-effect
relationships. Causes having strong positive and negative correlation with the problems
arc identified for the improvement program. Control charts are graphical tools
representing the state of control of a process. Samples coming out of a process are
collected at frequent intervals, their quality characteristics measured and then plotted on
the appropriate chart for analysis. If the process is in control there is a high probability
the sample will fall between the statistically calculated upper and lower control limits.
Walter Shewhart, in the 1920s at Bell Laboratories, was the first to propose control charts
for distinguishing between common causes (or random variations) and special causes (or
non-random variations). We have control charts both for variable and attribute measures.
Thus organized problem solving involves defining the problem, identifying the root
cause of the problem, identifying the various solutions, selecting the best solution, and
recommending corrective action procedures for either controlling, reducing, or
eliminating problems.
Improving the process
Control means maintaining a
certain level of performance
while improvement means
achieving a higher level of
performance. Figure 3.10
shows the difference between
control and improvement. To
monitor the performance,
processes must be measurable.
We use statistical process
control (SPC) techniques to
measure and analyze variations
in a process. In any process,
the process-performance
measures fluctuate randomly,
due to common causes, around a certain target value (or average value known as
process mean). However, due to some special causes we also have non-random
variations taking place. We use control charts to identify these non-random deviations
in a process caused by the sporadic problems. We get rid of these underlying causes to
bring the process under control. On the other hand, to improve the process we need to
achieve higher performance levels by reducing the random chronic problems (or the
common causes of fluctuation) around new and superior target levels.
Thus we use SPC to detect special causes of process variation from common causes. A
process is said to be in a state of statistical control when the process variations are due to
the inherent, common causes only. Such processes are considered to be stable and
predictable within appropriate limits. A stable process, which also meets the product
specifications, can produce acceptable products. However, attaining stability is not an
end in itself. Rather continuously striving to reduce the random (or natural) variations
in the process is the main objective of any continuous improvement program. SPC is
implemented on the key processes where the sources of variability have been identified.
The operators are trained to gather preliminary data and prepare and use control charts.
Process Capability Studies
Continuous improvement leads to process improvement which means variability
reduction through enhancement of process capability. We will try to understand what
process capability means.
TQM organizations that depend on outside suppliers often expect their suppliers to
provide process capability data along with the parts that are supplied. Process
capability quantifies the amount of variation inherent in the processes producing
these parts thereby helping the customer organization to determine the quality of the
parts supplied. If there is excessive variability in the process, it will have difficulty in
meeting the specifications. Thus the process capability will be low and consequently
there would be lot of defectives in the goods supplied. Similarly within the
organization itself, process capability data of the core processes are necessary
upstream for the designers in determining the design specifications and tolerances.
Designers should not specify tight tolerances if the products are to be manufactured
in processes having excessive variability (i.e., low capability). On the other hand
highly capable processes should not be underutilized (or wrongly utilized) by
specifying loose tolerances.
Figure 3.11 shows processes having
certain natural tolerances (or
variations) and how they are
performing in relation to the design
tolerances (or specifications).
Process A is a highly capable one
because it is well within the design
limits. Process B, however, has
excessive variability and hence is
less capable of producing consistent
quality products. For process B the
natural tolerance is equal to the
design tolerance. This can be translated into .27 defects in 100 parts that are
manufactured. These are the defectives that lie outside the three sigma limits. Does not
seem that bad. But what if we are producing a million parts? It translates into having
2700 defects per million. This is not an insignificant number if the loss per defect is very
high. As some articles report, it could mean 20,000 wrong drug prescriptions a year, or
15000 babies accidentally dropped by nurses each year, or 500 incorrect surgical
operations each week and so on. . Hence having a design tolerance equal to the process
tolerance is not a good idea when we consider the three sigma limits. Now if six sigma
limits correspond with the design limits, then there is a lot of reduction in the variability
of the process. Under such situations we have a highly capable process which, if centered
on the mean, translates into having defectives of only 2 parts per billion. Motorola has
made six sigma famous by focusing on product design and process capability
improvements. Motorola's design limit of six sigma with a slight shift in the process
achieved defectives up to 3.4 parts per million (ppm). Both the processes in Figure 3A I
are centered around the mean value.
Thus, we can improve the process capability either by reducing variations in the process
(thereby changing its natural limits) or by revising the design tolerances (thereby making
changes to the design). To measure the quality of a process (and thereby its products) we
need to know two things: (a) how capable is the process (measured by Cp index) and (b)
how well centered it is (measured by Cpk index). Cp determines what the process is capable
of based on the process standard deviation and the total design tolerance.
Cp =
Tolerance
6
where, tolerance = upper specification limit - lower specification limit

Cpk determines how well the process is centered by comparing the process mean with
the nearest specification limit (NSL).
Cpk =
mean-NSL
3
Note that when the process is centered, Cp = Cpk . For a six sigma company C = Cpk= 2.
Figure 12 shows Process X having a shift in the process average. Even though it is as
capable as Process Y, it has a greater chance of not meeting the USL. Both the processes
are, however, more capable than Process Z. If process Y has a standard deviation equal to
.7 units, and if the design tolerance is specified as 8 units, then the process capability Cp=
35
8 4.2 = 1.9 and Cpk = 4 (3*.7) = 1.9 .

However for process X (having same
standard deviation) the C pk value will be
lower than 1.9 and the C p will be equal to
1.9.
Before discontinuing our discussion on
specification limits and process
performance, let us briefly look at a
traditional approach. According to this
approach all product meeting design
specifications are equally good and those
just missing the design specifications are
equally bad (see Figure 3.13). This is
also known as the goal- post syndrome.
However, according to Taguchi the
target or the nominal specifications (or
the goal -posts). Hence, the farther away
we are from the target value the greater
is the loss in the quality of the part. He
has represented this loss in the form of a
quadratic function. This is known as the
Tauguchi loss function.
In summary, the voice of the customer if translated properly provides the tolerance
specifications needed in satisfying customer requirements. The process control limits
for any stable process, provide the limits to the natural variation of a process. This is
the voice of the process (or the characteristic of that particular process). These natural
variations are due to common (or random) causes. The capability of this process in
meeting the customer requirements can be quantified in the form of a process
capability index (Cp).
Note that higher the index the better is the process capability. It means that the
natural variations are too small and the specified tolerance is large enough for the
process to meet the customer requirements consistently. TQM organizations aim to
improve the process capability index by managing both the numerator and the
denominator of the above ratio (i.e., by making it an organization wide approach).
3.6
36
EMPLOYEE INVOLVEMENT AND

EMPOWERMENT
Processes cannot be improved if employees are either not fully involved or fully
empowered. Employee involvement means each employee contributes toward achieving
the organizational goals. These contributions are valued by the management and they
both recognize that the organization's success depends on total employee involvement.
Employee empowerment means authorization of employees to identify and solve
problems hindering quality efforts. Process owners need to be empowered by the
management to recognize and solve problems. We discussed how non-random variations
in the process lead to root cause identification of the underlying problem. For effective
TQM implementation, the process owners must be empowered to use organizational
resources for eliminating such problems. Similarly without employee involvement we
cannot have process control tools being effectively used for quality improvement.
To facilitate employee involvement we need to recognize the potential value of each

individual, assign work where they can be successful, understand their motivation
and listen to them. TQM organizations can initiate formal suggestion schemes which
can help them in listening to their employees. These schemes can be used for
collecting quality improvement suggestions. Some companies give cash awards and
incentives for suggestions which get approved. Some ideas may not find approval for
implementation. However, it is important for the management to get back to the
employee with the appropriate feedback so that he knows why his ideas got turned
down. Listening to the employee suggestions and getting back to them with a
feedback is a must for ensuring employee involvement.
Employee involvement also requires management's willingness to empower

subordinates. At the same time empowered employees who are not sensitized to the
organizational goals cannot apply their empowerment effectively. It is the
management's responsibility to define the common vision for the organization so that
empowered employees know what their roles are in achieving these objectives.
Empowered employees must be trained properly to take up organized problem
solving initiatives. Organizational resources, if necessary for implementing the
suggestions, must be provided to help them perform better. There could be
improvement concepts that cannot be approved by the management. In such cases the
management must give reasons as to why it cannot be implemented.
Thus employee involvement and empowerment are essential to tap the full potential
of the workforce in attaining organizational objectives. Discretionary efforts of
empowered employees are recognized and tapped for ensuring the success of
continuous improvement programs. Top management must be committed and
involved in setting up systems to support TQM activities. Mechanisms must be in
place so that their subordinates can take up greater responsibility.
Activity F
What effect does employee involvement have on motivation? Explain the effect in
terms of motivational theory.
.........................................................................................................................................
.........................................................................................................................................
.........................................................................................................................................
Activity G
Assume that a company has just committed to change from a traditional style of
management to one based on TQM. What topics would you include for
Shop floor employee
Front-line supervisors
Middle-level managers
.........................................................................................................................................
.........................................................................................................................................
.........................................................................................................................................
Activity H
Decribe how training in problem solving would improve
Process control
Employee motivation
.........................................................................................................................................
.........................................................................................................................................
.........................................................................................................................................
3.7
ISO 9000: THE INTERNATIONAL QUALITY

SYSTEM STANDARD
ISO 9000 is a series of standards agreed upon by the Geneva based International
Organization for Standardization (ISO), It was adopted in 1987. It is a set of written
37
standards laying down a quality system. The basic elements of the system are defined
through documentation. The guidelines ensure universally recognized and uniform
quality systems that are rooted in the customer's requirements. ISO 9000 creates a
discipline required for a TQM organization.
Here are some highlights:
ISO 9000 CERTIFICATION IS ISSUED BY INDEPENDENT ISOCERTIFIED AUDITORS.
REGISTRATION WILL BE INCREASINGLY DRIVEN BY CUSTOMER

REQUIREMENTS & COMPETITIVE PRESSURES, NOT VIA OFFICIAL OR
STATUTORY MANDATE.
CERTIFICATION ONLY VERIFIES THAT YOUR FACTORY, YOUR

LABORATORY, OR YOUR OFFICE MEETS A SET OF PREDETERMINED
(by ISO) QUALITY MANAGEMENT REQUIREMENTS.
DOCUMENTATION IS CENTRAL TO ISO 9000 REQUIREMENTS, FOR

THE PURPOSES OF PLANNING, CONTROLLING, TRAINING &
PROVIDING OBJECTIVE EVIDENCE OF COMPLIANCE.
ISO 9000 IS NOT A PRODUCT STANDARD BUT A QUALITY SYSTEM

STANDARD. IT IS DESIGNED & INTENDED TO APPLY TO VIRTUALLY
ANY PRODUCT OR SERVICE MADE BY ANY PROCESS ANYWHERE IN
THE WORLD.
ISO 9000 REQUIRES THAT THE QUALITY SYSTEM MONITOR

CONFORMANCE TO REQUIREMENTS.
OBLIGATES MANAGEMENT TO IMPLEMENT STATISTICAL

TECHNIQUES WHEN & AS APPROPRIATE.
ISO 9000 helps companies that market their products in the European markets. It is
essential for companies (or vendors) supplying to other companies that demand ISO
9000 certification. It is also necessary for companies whose competitors are certified
or are seeking ISO 9000 certification. Companies with geographically scattered
facilities & global operations find it easier to convince customers about their quality
standards, if they have ISO 9000 certification. It is also meant for companies whose
transnational parents are seeking ISO 9000 certification.
ISO 9000 originated from the U.S. Department of Defense (quality) standards. The
British Standards Institute adopted these standards in 1979 for business processes and
used them as its national standard under the name of British Standard 5750. BS5750
was adopted by ISO in 1987 and called it ISO 9000 series. These series have
undergone revision in 1994.
Here are some harmonized versions of ISO 9000.
HARMONIZED VERSIONS OF ISO 9000
NATION
STANDARD
AUSTRALIA
BELGIUM
CANADA
DENMARK
GERMANY
INDIA
SWEDEN
AS3 900
NBNX50
CSAZ299
DS/EN 29000
DIN ISO 9000
IS 14000
SS ISO 9000
UK
BS 5750
COMPONENTS OF THE ISO 9000 STANDARD
38
ISO 9000 is a misnomer. Companies do not get an ISO 9000 certification.

Instead they get either an ISO 9001, ISO 9002 or ISO 9003 certification.
Quality System Models:
ISO 9001
ISO 9002
ISO 9003
for facilities seeking ISO 9000 registration for "contractual" purposes.
Quality Management Guidelines:

ISO 9004
ISO 9004-2
ISO 9000-3
facilities do not register to these guidelines. These are mainly guidelines for
facilities wishing to implement ISO 9000.
Guidelines for Auditing:

Audits (or Assessments) to obtain evidence about the performance of the system
against specified requirements.
INTERNAL ASSESSMENTS (by OWN FACILITY PERSONNEL)
SECOND-PARTY ASSESSMENTS (by CUSTOMER)
THIRD-PARTY ASSESSMENTS (by an ACCREDITED THIRD PARTY)
ISO 10011 SERIES (GUIDELINES FOR AUDITING QUALITY SYSTEMS)

ISO 10011-1 (1990) "AUDITING"
ISO 10011-2 (1990) "QUALIFICATION CRITERIA FOR QUALITY
SYSTEMS AUDITING"
ISO 10011-3 (1990) "MGMNT OF AUDIT PROGRAMS"
Guidelines for Measuring Equipment:

For many facilities monitoring means taking measurements.
ISO 10012-1 (1992) "QUALITY ASSURANCE REQUIREMENTS FOR
MEASURING EQUIPMENT" (guidance docu)
Supporting Documents:
ISO 9000
"QUALITY MANGMNT & QUALITY ASSURANCE

STANDARDS:
GUIDELINES FOR SELECTION & USE"
ISO 8402
"QUALITY VOCABULARY"
ISO 9000-2
generic guidelines for the application of the contractual

models
ISO 9000 for Quality Management Purposes:

The Guidance Documents
ISO 9004 and ISO 9004-2 provide a clearer & more graphic illustration of an
integrated quality system than do the contractual models.
ISO 9004
for MANUFACTURING & SERVICE SECTOR
ISO 9004-2
for SERVICE SECTOR
ISO 9000-3
A-SPECIALIZED SET OF GUIDELINES FOR APPLYING

ISO 9001 TO FACILITIES WHICH DEVELOP AND
MAINTAIN COMPUTER SOFTWARE
ISO 9000 for Contractual Pureposes:

The Quality System Models
The following are generic models. They apply to virtually any facility producing
any product or service for virtually any market. They mostly encourage the use
of good business practices and time proven quality methods. (see Table 3.3)
39
ISO 9001
ISO 9002
ISO 9003
most comprehensive
covers facilities whose process includes
DESIGN/DEVELOPMENT, PRODUCTION,
INSTALLATION & SERVICING
contains 20 sections describing various elements of

the quality system
more limited
applies to facilities making products which are

designed and serviced by others
includes 18 of the 20 sections found in ISO 9001
most limited
applies only to facilities performing final inspection

& test functions
includes 12 of the 20 sections found in ISO 9001
Let us summarize what we have said so far regarding ISO 9000. Stated simply ISO
9000 guides you to "document what you do and then do what you documented" It
creates an awareness and brings in the discipline much needed for continuous
improvement and TQM. ISO 9000 specifies the way a company operates along with
its quality standards, service levels, delivery performances and so on. It helps a
company to be in a customer company's short-list of supplier firms. The best
certification for a company is through a accredited third party. Certification can take
from six to twelve months or more depending on the companies existing standards,
organization culture and top management commitment.
Table 3.3: ISO 9001 - 9003 CROSS REFERENCE (Section numbers)
SECTION COVERAGE
ISO 9001
ISO 9002
ISO 9003
1
2
3
4
5
6
7
4.1
4.2
4.3
4.4
4.5
4.6
4.7
4.1
4.2
4.3
4.4
4.5
4.6
4.1
4.2
4.3
-
Product Identification
& Traceability
9 Process Control
10 Inspection & Testing
4.8
4.9
4.10
4.7
4.8
4.9
4.4
4.5
11 Control of Inspection,
Measuring & Test Equipment
12 Inspection & Test Status
4.11
4.12
4.10
4.11
4.6
4.7
Management Responsibility
Quality System
Contract Review
Design Control
Document Control
Purchasing
Control of Customer-Supplied Product
13 Control of Nonconforming Product

14 Corrective Action
15 Handling, Storage,
Packaging and Delivery
16 Quality Records
17 Internal Quality Audits
4.13
4.14
4.12
4.13
4.8
-
4.15
4.16
4.17
4.14
4.15
4.16
4.9
4.10
-
18 Training
4.18
4.17
4.11
19 Servicing
20 Statistical Techniques
4.19
4.20
4.18
4.12
Note: The appendix at the end of this chapter gives some more details on ISO 9000.
40
Activity I
Does ISO 9000 contain product standards or standards for operation of a quality
management System? Explain the difference.
.........................................................................................................................................
.........................................................................................................................................
.........................................................................................................................................
3.8
SUMMARY
In this unit we have discussed how TQM gained its importance over the century.
How quality systems evolved from a reactionary post-production defect detection
oriented approach to a more proactive defect prevention approach. To drive TQM
efforts we realize the importance of customers and the need for understanding and
deploying their expectations through the organization. We discussed the need for
orienting our processes to be in line with the quality requirements of our customers.
Process performance measures need to be developed for monitoring improvements.
Organized problem solving techniques were discussed to identify major problem
areas. We also discussed statistical process control techniques and process capability
studies for ensuring continuous improvement. To make TQM implementation
successful. employee participation and empowerment is essential. We also discussed
the importance of ISO 9000 as an International systems standard meant for assuring
quality.
3.9
SELF-ASSESMENT EXERCISES
1.
Illustrate how the TQM concept can integrate design, engineering,

manufacturing and services.
2.
Explain why quality should be better by following the TQM concept them in a
system that depends on final inspection
3.
What common elements or principles can you identify among (1) the Baldridge
criteria and (2) Deming, Jurian and Crosby?
4.
List the characteristics of excellent leadership for TQM
5.
Describe how leadership by top management is the driven quality.
6.
Give an example of a company culture as reflected in a statement of basic

beliefs. Would such a statement help to institutionalise a quality culture? If so
how?
7.
Describe how leadership by top management is the driven of quality.
8.
Choose two functions on activities (market research, R & D, design, production

planning, procurement. human resources) and show how information can serve
to integrate them across functional lines.
9.
How does information technology affect organisational structure? Give an

example of how information technology can facilitate TQM?
10. Why is if important for U.S. firms to comply with ISO 9000?
11. Answer the criticisms that meeting ISO standards will add to production costs.
12. What are the benefits of ISO 9000 certification?
13. Identify the quality cost elements associated with any of the institutions listed
below. Define each of the elements, and suggest how each might be quantified
in practice: (a) a university (b) a hospital (c) the local bus line (d) a bank (e) a
manufacturer of any of these wooden furniture, cotton cloth, men's shoe, glass
bottle casting, drugs, (f) a text book publisher.
14. Based on your on experience, give one or two examples of situations where
pareto analysis might help improve quality or productivity.
15. What are the steps in moving from a system of final inspection to process
control?
16. Choose a non-manufacturing (service) process and show how statistical quality
control would be-appropriate.
41
3.9
SELF ASSESMENT EXERCISES
1.
Illustrate how the TQM concept can integrate design, engineering,

manufacturing and services.
2.
Explain why quality should be better by following the TQM concept than in a
system that depends on final inspection.
3.
What common elements or principles can you identify among (1) the Baldridge
criteria and (2) Deming, Juram, and Crosby?
4.
List the characteristics of excellent leadership for TQM.
5.
Describe how setting targets for quality improvement helps to establish a culture
and climate.
6.
Give an example of a company culture as reflected in a statement of basic

beliefs. Would such a statement help to institutionalise a quality culture? If so,
how?
3.10 FURTHER READING

Berk, J. and Berk, S. (1993) "Total Quality Management: Implementing Continuous
Improvement," Excel Books, New Delhi.
DeToro, I. J. and Teener, A. R. (1992) "Total Quality Management: Three Steps to
Continuous Improvement," Addison-Wesley Publishing Company.
Evans; J. R. and Lindsay, W. M. (1994) "The Management and Control of Quality"
Jaico Publishing House.
Johnson, P. L. (1993) "ISO 9000,"McGraw Hill
Juran, J. M. and Gryna, F. M. (1995) "Quality Planning and Analysis," Tata-McGraw
Hill Publishing Company Limited, New Delhi
Kehoe, D. K. (1996) "The Fundamentals of Quality Management," Chapman & Hall.
J. Ross, J.E. (1999) "Total Quality Management" Kogan Page Limited, London, 2nd
Edition.
3.11 APPENDIX: ISO 9000 QUALITY SYSTEM

STANDARDS
ISO 9000 FAMILY:

ALL THOSE INTERNATIONAL STANDARDS PRODUCED BY THE
TECHNICAL COMMITTEE ISO/TC 176. AT PRESENT THE FAMILY
COMPRISES:
a)
All International Standards numbered ISO 9000 through to ISO 9004,

including all parts of ISO 9000 and ISO 9004.
b)
All International Standards numbered ISO 10001 through 10020, including

all parts; and
c)
ISO 8402
SCOPE OF ISO 9000-1

CLARIFIES PRINCIPAL QUALITY-RELATED CONCEPTS & THE
DISTINCTIONS & INTERRELATIONSHIPS AMONG THEM:
PROVIDES GUIDANCE FOR THE SELECTION & USE OF THE ISO 9000
FAMILY OF INTERNATIONAL STANDARDS ON QUALITY MGMNT &
QUALITY ASSURANCE.
CONCEPT OF A PROCESS is defined.
SOME TERMS & DEFINITIONS TAKEN FROM ISO 8402: 1994
42
QUALITY: Totality of characteristics of entity that bear on its ability to satisfy

stated & implied needs.
CONTRACTUAL ENVIRONMENT -> needs are specified

OTHER ENVIRONMENTS
defined.
-> implied needs should be identified &
QUALITY POLICY: Overall intentions & directions of an organization with

regard to quality; as formally expressed by top management.
QUALITY MANAGEMENT: All activities of the overall management

function that determine the quality policy,_ objectives & responsibilities and
implement them.
Implement by means such as QUALITY PLANNING, QUALITY CONTROL,
QUALITY ASSURANCE and QUALITY IMPROVEMENT within the quality
system.
QUALITY SYSTEM: Organizational structure, procedures; processes &

resources needed to implement duality management.
QUALITY CONTROL: Operational techniques & activities that are used to

fulfill requirements for quality.
QUALITY ASSURANCE: All the planned & systematic activities

implemented within the quality system, and demonstrated as needed, to provide
adequate confidence that an entity will fulfill requirements for quality.
INTERNAL QUALITY ASSURANCE
-> provides confidence to mngmnt
EXTERNAL QUALITY ASSURANCE

-> in contractual or other situations,
quality assurance provides confidence to the customers or others.
QUALITY IMPROVEMENT: Actions taken throughout the organization to

increase the effectiveness & efficiency of activities & processes in order to
provide added benefits to both the organization & its customers.
PRODUCT: Result of activities or processes. The general categories are

SERVICE
HARDWARE
PROCESSED MATERIALS
SOFTWARE
CUSTOMER: Recipient of a product provided by the supplier.

In a CONTRACTUAL SITUATION the customer is called the "purchaser". The
customer may be for example, the ultimate consumer, user, beneficiary or
purchaser. The customer can be either external or internal to the organization.
SUPPLIER: Organization that provides a product to the customer.

In a CONTRACTUAL SITUATION, the supplier is the "contractor". The
supplier may be, for example: the producer. the distributor, importer, assembler
or service organization. Supplier can be either external or internal to the
organization.
PROCESS: Set of interrelated resources & activities which transform inputs

into outputs. Resources may include PERSONNEL, FINANCE, FACILITIES,
EQUIPMENT, TECHNIQUES& METHODS.
CONCEPT OF A PROCESS:
43
PRODUCT-RELATED & INFORMATION-RELATED FLOW

PRODUCT RELATED => Raw Math, Intermediate Products, Final Product, Sampled
Product
INFORMATION RELATED => Product Reqmnts, Product Characteristics & Status
info, Support-Function Communication, Feedback on Product Performance and
Needs, Measurement Data from Sampled Product.
EVALUATING QUALITY SYSTEMS
Three questions to be asked in relation to every process being evaluated:
a)
Are the processes defined and their procedures appropriately documented?
b)
Are the processes fully deployed and implemented as documented?
c)
Are the processes effective in providing the expected results?
QUALITY SYSTEM SITUATIONS

=> guidance for quality management
=> contractual between first and second parties.
=> second party approval (undesirable if there are several customers)
=> third party certification (takes care of logistics)
NOTE: FIRST PARTY AUDIT -> "internal" audit
SECOND PARTY &
THIRD PARTY AUDIT -> "external" audit
WHY DOCUMENTATION IS REQUIRED?
=> To provide permanent reference for
* implementation of Quality Systems
* maintenance of quality systems
=> To avoid differing descriptions
=> To ensure orderliness in operations
=> To train personnel
=> To provide for a system of audits
REGISTERING TO ISO 9000
A FACILITY REGISTERS TO ISO 9000 IN ORDER TO OBTAIN THIRD-PARTY
VERIFICATION THAT ITS QUALITY SYSTEM CONFORMS TO THE ISO 9000
STANDARD.
REASONS FOR REGISTERING
TO REINFORCE QUALITY PROGRAMS & COMMITMENT TO QUALITY
AS A PROACTIVE STEP TO COUNTER COMPETITION
44
TO SECURE NEW BUSINESS
IN RESPONSE TO COMPETITIVE THREAT
IN RESPONSE TO CUSTOMER REQUIREMENTS

IN RESPONSE TO REQUIREMENTS OF A PARENT ORGANIZATION
[NOTE: FACILITIES TEND TO RUSH INTO THE PROCESS OF APPLYING
FOR ISO 9000 BEFORE THEY ARE READY]
PREPARATORY STEPS
HAVING A QUALITY SYSTEM IN PLACE THAT MEETS THE TECHNICAL
REQUIREMENTS OF THE PART OF ISO 9000 QUALITY SYSTEM
STANDARD TO WHICH IT SEEKS REGISTRATION (ISO 9001, 9002 or 9003)
FACILITY MUST HAVE DOCUMENTED IT WITH A QUALITY MANUAL &
SUBORDINATE PROCEDURES, WORK INSTRUCTIONS, AND OTHER
MATERIALS.
FACILITY MUST HAVE OPERATED IT SUCCESSFULLY FOR 3 TO 6 MONTHS
=> ADDITIONAL STEPS:
ESTABLISH A RELATIONSHIP WITH AN ISO 9000 REGISTRAR WHOSE
SCOPE OF ACCREDITATION COVERS THE FACILITY'S FIELD OF
ACTIVITY.
FILE A FORMAL APPLICATION.
UNDERGO AN ASSESSMENT OF DOCUMENTATION. UNDERGO AN ONSITE ASSESSMENT OF QUALITY SYSTEM.
REMEDY NON-CONFORMANCES BY COMPLETING ANY REQUIRED
CORRECTIVE ACTION REQUESTS.
REGISTRATION FOR ISO 9000
1.
Obtain management commitment.
2.
Begin training for some leaders.
3.
Set up a steering team & sub-teams.
4.
Begin internal quality audit.
5.
Conduct in-house training.
6.
Compile quality manual.
7.
Conduct ongoing quality audits & implement corrective action.
8.
Apply to third-party auditors.
9.
Adequacy audit to be conducted.
10. Pre-assessment to be conducted.

11. Implement improvements.
12. Set the date for audit (a later date for real bad pre-audit).
13. Provide more training.
14. Conduct frequent checks.
15. Get plant leaders to conduct audits.
16. Share audit findings.
17. Send revised quality unanu11 for assessment.
18. Assessment to be conducted.
19. Fix minor discrepancies.
20. Registration obtained,
IN SHORT, A REGISTRAR
- IS ACCREDITED BY THE NACCB OR AN EQUIVALENT BODY
- USES ASSESSORS WHOSE CREDENTIALS ARE TRACEABLE TO RBA
45
46
Compiled From:
1. ISO 9000 by Perry L. Johnson (McGraw Hill 1993 Edition)
2. ISO 9000: Concepts, Methods 4 Implementation by T.P.Bagchi (Wheeler
Publishing 1994 Edition)
3. 1994 BIS Standards (IS 14000 Series)
47

Unit 3 Total Quality Management: Objectives

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Unit 3 Total Quality Management: Objectives

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Total Quality Management