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Total Quality Management

1. Main concerns of Manufacturers and Customers


Manufacturer
Customer
Quality
Quality
Cost
Price
Productivity
Availability
Concerns of manufacturer and customer are
generally not the same. Customer usually has no
concern for company productivity and cost.
Quality is the only common concern

Total Quality Management


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

Total Quality Management


3. Quality target is 100%, not even 99.9% because even

99.9% might mean many dissatisfied customers every


year, defective components entering assembly, accidents
etc.
Quality definition
Old view : Quality relates to products manufactured
exactly to specifications.
New view : Total Quality relates to products that
totally satisfy our customer needs and expectations in
every respect on a continuous basis. Quality then is to
satisfy customer needs....it is in fact to delight
customers.

Total Quality Management


4. Who is our customer
The next person(individual or functional group) in the
workplace; the receiver of output and the next to act
on it. A customer may be either external or internal.
Example :
Next in process customer
Marketing
Design
Manufacturing
Machine Shop
Assembly
Testing

Design
Manufacturing
Sales
Assembly
Testing
Despatch

Sales

Product user

Total Quality Management


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

Total Quality Management


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

Total Quality Management


7.

Elements of TQM
7.1 Top management commitment

Management responsibility
Support all TQM activities
Appointment of management representative
Customer feedback and complaints
Quality reviews
Shareholder delight

7.2

Delight the customer

Customer satisfaction, customer delight


Internal customers
Customer focus, customer orientation

Total Quality Management


7.

Elements of TQM
7.3 People based management

Total Employee Involvement


Employee delight
Team work
People make quality
Education and Training
Effective communication
Internal audits
Review of non conformities

Total Quality Management


7.

Elements of TQM
7.4 Management by fact
Process orientation
Measurement, Observation, Experimentation

7.5

Continuous improvement

Continuous improvement cycle (PDCA)


Kaizen
5S
Prevention of repetitive occurrence

PDCA Cycle

4. Act
Institutionalize
improvement;
continue cycle.

How to improve
next time?

1. Plan
Identify problem
and develop
plan for
improvement.

What to do?
How to do?

3. Study/Check

2. Do

Assess plan; is it
working?

Implement plan
on a test basis.

Things as per plan?

Do as planned

Problem Solving Cycle

PDCA for problem solving


What
Plan
Why
How

Do

Definition of
problem
Analysis of
Problem
Identification
Of causes
Planning
Countermeasures
Implementation

Check

Confirmation
Of result

Action

Standardization

Total Quality Management


7.

Elements of TQM
7.6 Appropriate technology

JIT
Automation
Fool proofing
TPM

7.7

Statistical process control


7.8 Problem solving tools/techniques including
Seven QC tools
7.9 Benchmarking

Total Quality Management


7.

Elements of TQM
7.10 Quality Function deployment
Identify customer expectations
Derive measurable parameters
Set standards for these
7.11 Monitor

variability in parameters
7.12 Move towards zero variability

Total Quality Management

7. Elements of TQM
7.13 Institute all pervasive system
ISO 9001:2000
TS 16949
ISO 14000 series, ISO 14001

7.14

Supplier Control

Approval of supplier for purchase


Technical support and vendor development
Supplier delight
Qualify suppliers and certify for direct line feed

Total Quality Management


7.

Elements of TQM
7.15 Reduce cost of quality
Internal failure
External failure
Appraisal
Prevention
7.16 Developing a quality culture
Change in mind set
Being proactive
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Cost of

uality

Measurement of a Companys Health


Financial Data
Sales
Operation Costs
Material Costs
Overhead Costs
Gen. & Admin. Costs

%
50
40
30
20
10

Factory Data

Defect Reports
Labor Hours
Recode/Redesign
Customer Complaints
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Percentage of
Sales Dollar

Cost of

uality

Iceberg
Bugs
Returned Goods
Recode
Defects
Warranty
Costs
Product Liability

Quotation Errors

Missed Deadlines
Complaint Handling
Bad Market Reviews

Interface
Errors

Configuration Errors
Help Desk

Process Slowdown
Poor Documentation

Training

Field Service
Lost Market Share

Software Patches
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Cost of

uality

Element Decision Flow


Is Cost related to
Prevention of NonConformance ?

YES

PREVENTION

YES

APPRAISAL

NO
Is Cost related to
Evaluating the
Conformance ?

NO
Is Cost related to
Non-conformance ?

NO
Not a Quality Cost

INTERNAL FAILURE

YES

Is Non-Conformance
found prior to
Shipment ?

YES

NO
EXTERNAL
FAILURE
J.M.Pant, Faculty

Cost of

uality

Examples of
Elements

PREVENTION
Design Quality Progress Reviews
Requirements Documentation
QA Training
Process Engineering

INTERNAL FAILURE
Recode/Repair Labor
Defect Tracking & Reports
Requirement Changes
Down Equipments

APPRAISAL
Unit Testing
Regression Testing
Automated Test Tools
User Interface Reviews
EXTERNAL FAILURE
Returned Goods
Liability Costs
Help Desk
Lost Sales/Market Share

J.M.Pant, Faculty

Cost of

uality

Strategy Premise
The Strategy is based on the premise that:

For each failure there is a root cause.

Causes are preventable.

Prevention is always cheaper.

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Cost of

uality
Appraisal
Prevention

Total Sales

Internal
Failures

Cost of
Quality%

External
Failures

TOTAL SALES

C O Q (Rs.Rs.Rs.)

J.M.Pant, Faculty

COST OF QUALITY
OPTIMUM QUALITY COST MODEL
COST/ GOOD UNIT

OPTIMAL
POINT
TOTAL
COST
FAILURE
COSTS

PREVENTION & APPRAISAL COSTS


0

% GOOD
J.M.Pant, Faculty

100

Target Specification Example


A study found U.S. consumers preferred Sony TVs made
in Japan to those made in the U.S. Both factories used
the same designs & specifications. The difference in
quality goals made the difference in consumer
preferences.
Freq.

Japanese factory
(Target-oriented)

LSL

Target

USL
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U.S. factory
(Conformanceoriented)

Benchmarking
How

do today's business leaders sustain their


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

Benchmarking
Benchmarking

concept
What are others
Performance levels?
How did they get there?

What is our
Performance level?
How do we do it?
Creative
Adaptation

Breakthrough
Performance
J.M.Pant, Faculty

Benchmarking
Implicit

in benchmarking are two key elements:


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

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

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Benchmarking Process
Decide

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

Benchmarking Process
Decide

what to benchmark
Think about the critical success factors and the
mission.
Which processes are causing the most trouble?
Which processes contribute most to customer

satisfaction and which are not performing up to


expectations?
What are the competitive pressures impacting the
organization the most?
What processes have the most potential for
differentiating our organization from the competition?
J.M.Pant, Faculty

STANDING IN THE
MARKETPLACE

<Example>Rating for each attribute and weighted rating to


be entered in the cells for company X and the competitors
Attribute

Weight

Company X

Competitor A

Safety
Performance

Quality
Service
Ease of
Use
Reliability

J.M.Pant, Faculty

Competitor B

STANDING IN THE
MARKETPLACE

<Example>For a service unit


Satisfaction with Weightage
..

Company X

Greeting with a
smile
Processing
transactions
without error
Easy to read and
understand bank
statements
Prompt response
J.M.Pant, Faculty

Competitor
A

Competitor B

STANDING IN THE
MARKETPLACE

<Example>automobile manufacturer experiencing a drop in market


share
Attribute

Weightage

Comparison to competition %
Superior

Quality of
equipment
Quality and
availability of
spare parts
Quality of field
repair service
J.M.Pant, Faculty

Competitive

Inferior

Types Of Benchmarking
Internal

1.

Comparison within the organization of similar


activities.
Data easy to obtain

Competitive

2.

Organizations survival depends on its performance


relative to competition
Through surveys, reports, customers, suppliers,
buying customers product to take apart and test.

J.M.Pant, Faculty

Types Of Benchmarking
3.

Process.

Many processes are common across industry


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

Types Of Benchmarking
3.

Process.
<Examples>
Southwest Airlines benchmarked turnaround

time with auto racing pit crews.


Motorola looked to Dominos Pizza and
Federal Express for the best ways to speed up
delivery systems.

J.M.Pant, Faculty

Benchmarking Process
Identifying

the best firms to benchmark

There is no existing magic list of best-in-class

companies.
Hierarchy of best practices
World Class
Any organization, India
Industry-wide, Sector-wide
Competitor
Internally

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Benchmarking Process
Studying

Others

Information available internally


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

Benchmarking Process
Learning

from the data

Is

there a gap between the organizations


performance and the performance of the best-inclass organizations?
What is the gap? How much is it?
Why is there a gap? What does the best-in-class
do differently that is better?
If best-in-class practices were adopted, what
would be the resulting improvement?
J.M.Pant, Faculty

Benchmarking Process
Using
Two

the findings

groups must agree on the change

The process owners-people who will run the process


Top management-who will enable the process and

provide the necessary resources


If

best-in-class practices were adopted, what


would be the resulting improvement?
Current practices cant change the best-in-class
results but changing the process can.
J.M.Pant, Faculty

Benchmarking Process
Using

the findings

When acceptance is gained, new goals based on the


benchmark findings are set.
The generic steps for the development and execution of
action plans are:

Specify tasks
Sequence tasks
Determine resource needs
Establish task schedule
Assign responsibility for each task
Describe expected results
Specify methods for monitoring results
J.M.Pant, Faculty

Quality Function Deployment


Dr

Mizuno of Tokyo Institute of


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

Quality Function Deployment


Benefits

of QFD:
Improves customer satisfaction
Defines requirements in a set of basic needs and

compares it to all competitive information.


Management can then place resources where they will
be the most beneficial in improving quality.
Reduces

implementation time

Fewer engineering changes needed


Critical to quality issues are identified and monitored

from product inception to production.


J.M.Pant, Faculty

Quality Function Deployment


Benefits

of QFD:
Promotes team work
Horizontal deployment of communication channels
Avoids misinterpretation, opinions and miscues.

Provides

documentation

Database for future design or process improvements is

created.
Serves as a training tool for new engineers.

J.M.Pant, Faculty

Quality Function Deployment


QFD

is a planning tool used to fulfill


customer expectations.
Focuses on Voice of the customer.
Market research attempts to capture the
voice of customer but they sometimes
conflict, and lack clarity.
This is where voice of the customer gets
lost and voice of the organization enters.
J.M.Pant, Faculty

Quality Function Deployment

Voice of Customer
Unsolicited

Solicited

Qualitative

Quantitative

Random

Structured

Trade visits
Customer visits
Consultants

Focus groups
Customer Complaint reports; lawsuits
Customer surveys; market
surveys; trade trials;
customer audits; product
purchase (buy back) survey

Sales force; training programs;


conventions; trade journals;
suppliers; academic; employees
J.M.Pant, Faculty

Quality Function Deployment


Voice

of customer:
What does the customer really want?
What are the customers expectations?
Are the customers expectations used to
drive the design process?
What can the design team do to achieve
customer satisfaction?
J.M.Pant, Faculty

Quality Function Deployment


Voice

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

Quality Function Deployment


QFD

team

Team

members from Marketing, Design,


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

Quality Function Deployment

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

Mapping the Voice of Customer

Affinity diagram Scrambled ideas


What are the issues involved in
missing shipping dates?
Not enough fork trucks

Engineering changes
Insufficient training
Overcrowded dock
Error on bill of lading
Computer crashes

Teams not used


No place for returns
Inexperienced supervisors
Shipping turnover
J.M.Pant, Faculty

Mapping the Voice of Customer

Affinity diagram Ordered ideas


What are the issues involved in
missing shipping dates?

Facilities
Overcrowded dock
No place for returns

People
Insufficient training
Teams not used
Shipping turnover

Not enough fork trucks


Inexperienced supervisors

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System
Computer crashes
Engineering
changes
Error on bill
of lading

Quality Function Deployment


Prepare

an affinity diagram for:


Improvement of the cafetaria
Reducing equipment downtime
Reducing congestion on roads
Making Delhi more safe
Increasing literacy in India
Improving quality of PG management
/engineering/ medical education
J.M.Pant, Faculty

House of Quality
The

primary planning tool used in QFD is


the house of quality.
The house of quality translates the voice of
the customer into design requirements that
meet specific target values and matches
those against how an organization will meet
those requirements.

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Interrelationship between
technical descriptors

Relationship between
requirements and descriptors

Prioritized technical descriptors


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Prioritized customer
requirements

(Voice of the customer)

Customer requirements

Technical descriptors
(voice of the organization)

Quality Function Deployment


QFD

(Fig A)

J.M.Pant, Faculty

Process
features

Product
features

Customers

Customers
needs

Customers
needs

Product
features

Process
features

Process
Control
features

Quality Function Deployment


Fig

B is a matrix of customer needs (customer


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

Quality Function Deployment

House of Quality (Fig B)

Correlations entered
In squares like:
Strong positive, positive,
Negative,
Strong negative
Technical
requirements

Paper
width

Paper
thickness

Coating
thickness

Tensile
strength

Paper
color

X = Us

Importance
to customer

A = Competitor A
B = Competitor B
( 5 is best)
1 2 3 4 5

Customer
requirements

Relationships
Strong=9
Medium = 3
Small=1

Competitive
evaluation

Paper will
not tear

Consistent
finish

No ink bleed

Prints clearly

A B

A X B

B A

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X AB

Quality Function Deployment

House of Quality (Fig B)

Correlations entered
In squares like:
Strong positive, positive,
Negative,
Strong negative
Technical
requirements

Peper
width

Paper
thickness

Coating
thickness

Tensile
strength

Paper
color

X = Us

Importance
to customer

A = Competitor A
B = Competitor B
( 5 is best)
1 2 3 4 5

Customer
requirements

Relationships
Strong=9
Medium = 3
Small=1

Importance
weighting

27

36

27

Target Values

W:mm

T: mm

microns

Kg per sq
cm

Approved
panel

Technical
evaluation

Competitive
evaluation

5
4
3
2
1

B
X
A

A B
A X B
B A

A
X
B

B
A
X

A
X
B

J.M.Pant, Faculty

X
B
A

X AB

Total Quality Management

Change in mind set for variability reduction

Conventional

TQM way

Meet specifications

Move to target value

High tech machines needed Even with old machines


through better setting,
maintenance and employee
training
Managers think and plan

Managers guide and lead


Workers think, plan and do

MBO

Kaizen (continuous
improvement)

Profit by driving task


completion

Quality is the path of profit


J.M.Pant, Faculty

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