UNIT I INTRODUCTION

Defnition of Quality:
The dictionary has many defnitions of quality! " short defnition that has achie#ed
acce$tance is : Quality is Customer %atisfaction! &itness for use is an alternati#e
short defnition! 'ere( customer means anyone )ho is im$acted *y the $roduct or
$rocess!
Quality is a $redicta*le de+ree of uniformity and de$enda*ility( at lo) cost and
suited to the mar,et!
Quality is a relati#e term( +enerally used )ith reference to the end-use of a $roduct!
Quality should *e aimed at the needs of the consumer( $resent and future!
"ccordin+ to I%O ./01( quality is the totality of features and characteristics of a
$roduct or ser#ice that *ear on its a*ility to satisfy stated or im$lied needs!
2roadly quality is:
a3 &itness for use
*3 4rade
c3 De+ree of $reference
d3 De+ree of e5cellence
e3 Conformity to requirements
Dimensions of Quality :
The follo)in+ are the com$onents re#eal the dimensions of quality!
6anufacturin+ Industries %er#ice Industries
7roduct &eatures "ccuracy
7erformance Timeliness
Relia*ility Com$leteness
Dura*ility &riendliness and courtesy
8ase of use "ntici$atin+ customer needs
%er#icea*ility 9no)led+e of ser#er
8sthetics 8sthetics
"#aila*ility Re$utation
Re$utation
Quality 7lannin+ :
Quality $lannin+ is the $re determined acti#ities in order to achie#e conformation to
the requirements! 6any or+ani:ations are fndin+ that strate+ic quality $lans and
*usiness $lans are inse$ara*le! The quality $lannin+ $rocedure +i#en *y
;ose$h!"!;uran has the follo)in+ ste$s:
< Identify the customers
< Determine their needs
< Translate those needs into our lan+ua+e!
< De#elo$ a $roduct that can res$ond to those needs
< O$timi:e the $roduct features to meet our and customer needs
Quality Costs :
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"ll or+ani:ations ma,e use of the conce$t of identifyin+ the costs needed to carry
out the #arious functions $roduct de#elo$ment( mar,etin+( $ersonnel( $roduction
etc!(
Until the ?>A0Bs this cost conce$t had not *een e5tended to quality function( e5ce$t
for the de$artmental acti#ities of ins$ection and testin+!
Durin+ the ?>A0Bs the conce$t of Quality Cost emer+ed! DiCerent $eo$le assi+ned
diCerent meanin+s to the term! %ome $eo$le equated quality cost )ith the cost of
attainin+ qualityD some $eo$le equated the term )ith the e5tra incurred due to $oor
quality! 2ut( the )idely acce$ted thin+ is Quality cost is the e5tra cost incurred due
to $oor or *ad quality of the $roduct or ser#ice!
Cate+ories of Quality Cost :
6any com$anies summari:e quality costs into four *road cate+ories! They are(
a3 Internal failure costs - The cost associated )ith defects that are found $rior
to transfer of the $roduct to the customer!
*3 85ternal failure costs - The cost associated )ith defects that are found after
$roduct is shi$$ed to the customer!
c3 "$$raisal costs - The cost incurred in determinin+ the de+ree of
conformance to quality requirement!
d3 7re#ention costs - The cost incurred in ,ee$in+ failure and a$$raisal
costs to a minimum!
%ome times )e can also include the hidden costs ie!( im$licit costs!
Traditional Quality cost model
8mer+in+ Quality Cost 6odel
!!! yes( hi+her quality quality doesnEt mean hi+her costs
The com$anies estimate quality costs for the follo)in+ reasons :
a3 To quantifyin+ the si:e of the quality $ro*lem in the lan+ua+e of money im$ro#es
communication *et)een middle mana+ers and u$$er mana+ers!
*3 To identify maFor o$$ortunities for cost reduction!
c3 To identify the o$$ortunities for reducin+ customer dissatisfaction and associated
threats to $roduct sala*ility!
"nalysis Techniques for Quality Costs :
Refer the recommended te5t *oo,!
2asic Conce$ts of Total Quality 6ana+ement :
Defnition of TQ6:
Total Quality 6ana+ement is a mana+ement a$$roach that tries to achie#e and
sustain lon+ term or+ani:ational success *y encoura+in+ em$loyee feed*ac, and
$artici$ation( satisfyin+ customer needs and e5$ectations( res$ectin+ societal
#alues and *eliefs( and o*eyin+ +o#ernmental statutes and re+ulations!
&i#e 7illars of TQ6 are(
< 7roduct
< 7rocess
< %ystem
< 7eo$le
< Geadershi$
Total Quality 6ana+ement is an eCecti#e system for inte+ratin+ the quality
de#elo$ment( quality maintenance and quality im$ro#ement eCorts of #arious
+rou$s in an or+ani:ation continuously( so as to ena*le mar,etin+( en+ineerin+(
$roduction and ser#ice at the most economic le#els )hich allo) for full customer
satisfaction!
The TQ6 is a$$lied to many sta+es of Industrial Cycle )hich are listed *elo) :
?! 6ar,etin+
1! 8n+ineerin+
H! 7urchasin+
/! 6anufacturin+
A! 6echanical
@! %hi$$in+
I! Installation and $roduct ser#ice!
J stron+K&undamental factors aCectin+ Quality : L > 6Bs3
?! 6ar,et
1! 6oney
H! 6ana+ement
/! 6en
A! 6oti#ation
@! 6aterials
I! 6achines and 6echani:ation
.! 6odern Information 6ethods
>! 6ountin+ 7roduct Requirements
2enefts of TQ6 :
Customer satisfaction oriented *enefts :
?! Im$ro#ement in $roduct quality
1! Im$ro#ement in $roduct desi+n
H! Im$ro#ement in $roduction Mo)
/! Im$ro#ement in em$loyee morale and quality consciousness
A! Im$ro#ement in $roduct ser#ice
@! Im$ro#ement in mar,et $lace acce$tance
8conomic im$ro#ement oriented *enefts :
?! Reduction in o$eratin+ costs
1! Reduction in o$eratin+ losses
H! Reduction in feld ser#ice costs
/! Reduction in lia*ility e5$osure
'istorical Re#ie) :
The history of quality control is undou*tedly as old as industry itself!
In ?>1/( N!"! %he)hart of 2ell Tele$hone Ga*oratories de#elo$ed a statistical chart
of the control of $roduct #aria*les! This chart is considered to *e the *e+innin+ of
statistical quality control! Gater in the same decade( '!&!Dod+e and '!4!Romi+( *oth
of 2ell Tele$hone Ga*oratories( de#elo$ed the area of acce$tance sam$lin+ as a
su*stitute of ?00O ins$ection!
In ?>/@( the "merican society for Quality Control )as formed! Recently the name
)as chan+ed into "mericn %ociety for Quality L"%Q3!
In ?>A0Bs N!8d)ards Demin+ em$hasi:ed a*out the mana+ementBs res$onsi*ility to
achie#e quality!
In ?>@0Bs the frst quality control circles )ere formed for the $ur$ose of quality
im$ro#ement!
In the late ?>.0Bs the automoti#e industry *e+an to em$hasi:e statistical $rocess
control!
"fter ?>>0Bs the I%O *ecame the model for a quality mana+ement system )orld
)ide!
Quality 6o#ement in India:
2efore Inde$endence in India( quality has *een a tradition *ut not in a consolidated
form!
Nalter %he)hart( the father of %tatistical Quality Control( #isited India for a short
$eriod of three months durin+ ?>/I-/. and initiated the %QC mo#ements in Indian
com$anies!
The quality mo#ement )as consolidated in the ?>.0s in the Indian Industries to
*rin+ out syner+y of resources *y the $ioneerin+ eCorts of Confederation of Indian
Industries LCII3
Dr!N!8d)ard Demin+( the father of Quality Control ( )ho tau+ht ;a$anese a*out
a$$lyin+ 7DC" cycle LDemin+ Cycle3 came to India in early ?>A0s!
The TQ6 mo#ement in U%" in ?>.0s tri++ered quality mo#ement in India in the year
?>.1 and Quality Circle )as *orn!
7rof! Ishi,a)a ( the founder of quality mo#ement in ;a$an )as in#ited *y CII to come
to India to address Indian Industry in ?>.@!
CII or+ani:ed a frst maFor seminar )ith ;ose$h ;uran in ?>.I!
CII $ro#ided a focus and an im$etus to the quality mo#ement *y formin+ a TQ6
di#ision in ?>.I! 2y then the focus )as shifted from quality circles to quality
mana+ement!
CII set u$ the TQ6 di#ision )ith the hel$ of 1? com$anies )ho a+reed to su$$ort
the Fourney of TQ6 in India! The chief e5ecuti#es of these com$anies formed a
National Committee on Quality!
CII also launched the frst ne)s letter on Quality!
The year ?>.I *rou+ht the I%O >000 standards into reality and #isi*le strate+ies
emer+ed!
CII or+ani:ed trainin+ $ro+rammes in I%O >000 quality systems for international
standards and certifcation in the year ?>.>!
&rom the year ?>>?( Indian com$anies started to +et the I%O >000 certifcations!
The conce$t of TQ6 s$read o#er the ser#ice sector and technolo+y a$art from
en+ineerin+ a$$lications!
CII or+ani:ed and launch of National Quality Cam$ai+n in ?>>1( led *y the 7rime
6inister of India and the Quality %ummit or+ani:ed *y CII has no) *ecome an
annual feature across the country!
The future thrust on quality mo#ement in India )ould *e *ased on:
"$$lication Research L Industry and "cademics3
85$erience %harin+
I%O certifcations
8n#ironmental $rotection( safety and consumer $rotection for quality enhancement!
LIn addition $lease refer the ta*le +i#en in class notes3
7rinci$les of TQ6 :
Pisionary leadershi$
Customer-dri#en e5cellence
Or+ani:ational and $ersonal learnin+
Paluin+ em$loyees and $artners
"+ility
&ocus on the future
6ana+in+ for inno#ation
6ana+ement *y fact
7u*lic res$onsi*ility
&ocus of results and creatin+ #alues
%ystems $ers$ecti#e
Geadershi$ :
Geadershi$ $lays a central $art in understandin+ +rou$ *eha#ior( for it is the leader
)ho usually $ro#ides the direction to)ard +oal attainment! Therefore( a more
accurate $redicti#e ca$a*ility should *e #alua*le in im$ro#in+ +rou$ $erformance!
Ne can defne leadershi$ as the a*ility to inMuence a +rou$ to)ard the
achie#ement of
+oals!
< The source of this inMuence may *e formal! " $erson may assume a leadershi$ role
sim$ly *ecause of his=her $osition!
< Not all leaders are mana+ers( nor( for that matter( are all mana+ers leaders!
< Non-sanctioned leadershi$Qthe a*ility to inMuence that arises outside the formal
structure of the or+ani:ationQis often as im$ortant as or more im$ortant than
formal inMuence!
< Geaders can emer+e from )ithin a +rou$ as )ell as *y formal a$$ointment to lead
a +rou$!
Or+ani:ations need stron+ leadershi$ and stron+ mana+ement for o$timum
eCecti#eness!
Geaders must challen+e the status quo( create #isions of the future( and ins$ire
or+ani:ational mem*ers!
%i5 traits on )hich leaders tend to diCer from non leaders are:
a! "m*ition and ener+y
*! Desire to lead
c! 'onesty and inte+rity
d! %elf-confdence
e! Intelli+ence
f! ;o*-rele#ant ,no)led+e!
Characteristics of Quality Geaders:
They continuously e#aluate the chan+in+ customer needs!
They em$o)er( rather than control su*ordinates!
They em$hasi:e im$ro#ement rather than maintenance
They em$hasi:e $re#ention!
They encoura+e colla*oration rather than com$etition!
They train and coach rather than direct and su$er#ise!
They learn from the $ro*lems!
They continuously im$ro#e communication!
They continuously committed to quality!
They choose su$$liers in the *asis of quality not $rice!
They esta*lish or+ani:ational system to su$$ort quality eCort!
They encoura+e and reco+ni:e team eCort!
Quality Council :
In order to *uild quality in the culture( a quality council is esta*lished to $ro#ide
o#erall direction! It is the dri#er for the TQ6 en+ine!
In a ty$ical or+ani:ation the quality council is com$osed of the chief e5ecuti#e
oRcer LC8O3D the senior mana+ers of the functional areas( such as desi+n(
mar,etin+( fnance( $roduction( and qualityD and a Coordinator or consultant!
Duties of the quality council:
a3 To de#elo$ the #ision( mission and quality statement of the or+ani:ation( )ith the
in$ut from all the $ersonnel!
*3 To de#elo$ strate+ic lon+-term $lan )ith +oals and annual quality im$ro#ement
$ro+ram )ith o*Fecti#es!
c3 Create a total education and trainin+ $lan!
d3 Determine and continuously monitor the cost of $oor quality!
e3 Determine the $erformance measures of the or+ani:ation and monitor!
f3 Continuously determine those $roFects that im$ro#es and aCect e5ternal and
internal customer satisfaction!
+3 8sta*lish multifunctional $roFect and )or, +rou$ teams and monitor their
$ro+ress!
h3 8sta*lish and re#ise the reco+nition and re)ard system to account for the ne)
)ay of doin+ *usiness!
The ty$ical quality council meetin+ a+enda of a )ell esta*lished TQ6 or+ani:ation :
a3 7ro+ress re$orts on teams
*3 Customer satisfaction re$ort
c3 7ro+ress on meetin+ +oals
d3 Ne) $roFect teams
e3 Reco+nition dinner
f3 2enchmar,in+ re$ort
Quality %tatements :
Core #alues and conce$ts $ro#ide the unity of $ur$ose! In addition to that( the
quality statements include the #ision statement( mission statement and quality
$olicy statement! They are the $art of the strate+ic $lannin+ $rocess!
Pision %tatement:
It is a short declaration of )hat an or+ani:ation as$ires to *e tomorro)! It is the
ideal state that mi+ht ne#er reached *ut )hich you continuously stri#e to achie#e!
85am$le :
Ne )ill *e the $referred $ro#ider of safe( relia*le( and cost-eCecti#e $roducts and
ser#ices that satisfy the electric-related needs of all customer se+ments!
&GORID" 7ON8R S GI4'T CO67"NT
6ission %tatement :
The mission statements ans)ers the follo)in+ questions :
Nho )e are U Nho are the customers U Nhat )e do U and 'o) )e do it U
It is the usually a one $ara+ra$h statement )hich descri*es the function of the
or+ani:ation! It $ro#ides a clear statement of $ur$ose for em$loyees( customers and
su$$liers!
85am$le :
To meet customersB trans$ortation and distri*ution needs *y *ein+ the *est at
mo#in+ their +oods on time( safely and dama+e free!
C"N"DI"N N"TION"G R"IGN"T%
%trate+ic 7lannin+ :
There are se#en *asic ste$s to strate+ic quality $lannin+!
a3 Customer needs
*3 Customer $ositionin+
c3 7redict the future
d3 4a$ analysis
e3 Closin+ the +a$
f3 "li+nment
+3 Im$lementation
%trate+ic $lannin+ can *e $erformed *y any or+ani:ation ! It can *e hi+hly eCecti#e(
allo)in+ or+ani:ations to do the ri+ht thin+ at the ri+ht time( e#ery time!
Demin+ 7hiloso$hy :
N! 8d)ards Demin+( an "merican quality e5$ert( *ecome a 7arama-4uru in ;a$an
*ecause he $reached the $hiloso$hical *asis of quality and $roducti#ity( )hich )ere
acce$ted( a*sor*ed and im$lemented )ith sustained $ositi#e results *y the
;a$anese!
The 'i+hest ")ard in the ;a$anese Industrial Circles is the Demin+ $ri:e for quality!
Dr! Demin+ introduced the 7lan Do-%tudy-"ct cycle to the ;a$anese decades a+o!
" Com$any $lans a chan+e( does it( chec,s the results and de$endin+ u$on the
results( acts either to standardi:e the chan+e or to *e+in the cycle of im$ro#ement
a+ain )ith ne) information!
Continuous or ne#er endin+ im$ro#ement requires such a circular a$$roach!
Demin+Bs 7hiloso$hy is +i#en in his ?/ $oints of quality mana+ement! 6ost of these
$oints )ere +i#en in a seminar for 1? $residents of leadin+ ;a$anese industry in
?>A0! The rest )ere de#elo$ed and the ori+inal ones modifed o#er a $eriod of three
decades!
?!Create and $u*lish the aims and $ur$oses of the or+ani:ation!
1!Gearn the ne) $hiloso$hy!
H!Understand the $ur$ose of ins$ection!
/!%to$ a)ardin+ *usiness *ased on $rice alone!
A!Im$ro#e constantly and fore#er the system!
@!Institute trainin+!
I!Teach and institute leadershi$!
.!Dri#e out fear( create trust and create a climate for inno#ation!
>!O$timi:e the eCorts of teams( +rou$s and staC areas!
?0!%tri#e to eliminate intrade$artmental conMicts
??8liminate e5hortations for the )or, force!
a3 8liminate numerical quotas for the )or, force!
*3 8liminate 6ana+ement *y O*Fecti#e!
?1!Remo#e *arriers that ro* $eo$le of $ride of )or,manshi$!
?H!8ncoura+e education and self-im$ro#ement of e#eryone!
?/!Ta,e action to accom$lish the transformation!
In addition he also $ointed out the I deadly diseases that aCectin+ the a*o#e
transformation
The %e#en Deadly Diseases
?! Gac, of constancy of $ur$ose!
1! 8m$hasis on short-term $rofts!
H! 8#aluation *y $erformance( merit ratin+( or annual re#ie) of $erformance!
/! 6o*ility of mana+ement!
A! Runnin+ a com$any on #isi*le f+ures alone!
@! 85cessi#e medical costs!
I! 85cessi#e costs of )arranty( fueled *y la)yers that )or, on contin+ency fee!
" Gesser Cate+ory of O*stacles
?! Ne+lect of lon+-ran+e $lannin+!
1! Relyin+ on technolo+y to sol#e $ro*lems!
H! %ee,in+ e5am$les to follo) rather than de#elo$in+ solutions!
/! 85cuses such as VOur $ro*lems are diCerentV!
A! Others!
2arriers to TQ6 Im$lementation :
Gac, of mana+ement commitment
Ina*ility to chan+e or+ani:ational culture
Im$ro$er $lannin+
Gac, of continuous trainin+ and education
Incom$ati*le or+ani:ational structure and isolated indi#iduals and de$artment
IneCecti#e measurement techniques and lac, of access to data and results
7ayin+ inadequate attention to internal and e5ternal customers
Inadequate use of em$o)erment and team )or,
&ailure to continually im$ro#e
$osted *y 6ani,andan!4 W H:1A "6
I than, #ery much the follo)in+ commenter( in encoura+in+ and moti#atin+ me to
ta,e this )e* $ostin+!
?? Comments:
6ani,andan!4 said!!!
Dear PIe)er( this notes mainly ta,en from the $rescri*ed te5t *oo,!
In no)ay this is a re$lacement for the *oo,!
&e*ruary 0H( 100A
6ani,andan!4 said!!!
Dear PIe)er( this notes mainly ta,en from the $rescri*ed te5t *oo,!
In no)ay this is a re$lacement for the *oo,!
&e*ruary 0H( 100A
"nonymous said!!!
Dear 6ani,andan
+reat Fo*( and its a +ood start )here )e can share thou+ht and e5chan+e!
Incidentally in the cam$us )e are in the $rocess of settin+ u$ a corse contnet
module!
r+ds
a!rama,rishnan
&e*ruary 1.( 100A
"nonymous said!!!
+ood Fo*! no need to *uy a *oo, for this su*Fect and also no need to attent the
classes for this!
6arch 01( 100A
"nonymous said!!!
&rom #!durai raF S ,!,!srihari
e5actly ta,en from te5t *oo,! no ne) idea is *een incro$rated! it is e5actly a
re$lacement of the te5t *oo,! *ut a +reat )or, done *y you!
6arch 01( 100A
"nonymous said!!!
8an intha $ola$$u ,etta #elai sei,ireer,al!
6arch H0( 100A
"nonymous said!!!
i am srihari for mechanical de$artment!
can you *rieMy e5$lain me )hat is the diCerence *et)een I%O and I%I and ho) far
these t)o are related!
you can also send your ans)er in
,X,XsriahriWyahoo!com
6ay H?( 100A
6ani,andan!4 said!!!
Dear %rihari(
Nice to hear from you!
I%O is a quality mana+ement system
I%I is quality standard!
&or e5am$le( in a steel industryI%I standardise youn+ modulus of a steel as
EYE7ascal(
)hereas the I%O loo,s into ho) this VYYV #alue is *uilt into a steel consistently and
certify the same!
;une H0( 100A
6ani,andan!4 said!!!
dear %rihari(
nice to hear from you
the diCerence *et)een I%O and I%I is for e5am$le( In a steel industry
I%I requires say a EY-7ascalE for a ty$e of steel( )hereas the I%O certify the $rocess of
ma,in+ the steel )ith s$ecifed E5-7ascalV #alue!
I%I- standard LTou can call it " Quality standard3
I%O - Quality mana+ement system!
&eel free to as, further questions!
85ce$t for three students( all of you secured +ood $ass mar,s in TQ6 e5am!
Con+rats!!!
0?!0I!100A
;une H0( 100A
"nonymous said!!!
Pery 4ood Fo*!
I am a student from IT! Not e#en one staC from our de$artment )ould ha#e thou+ht
a*out this!
4reat +oin+!
;anuary ?>( 100@
6ani,andan!4 said!!!
Than, you( $lease do comment as a Econstructi#e criticE manner
;anuary ?>( 100@
7ost a Comment
ntroduction to Quality and Total Quality Management (TQM)
Quality is a very subjective thing. Sometimes it is easily visible, sometimes you require an expert
to tell the difference.
This chapter contains following topics:
efinitions ! imensions
"lanning
Quality #osts
TQ$ %istory
&arriers to TQ$ 'mplementation
There are various definitions of quality given by various authorities organi(ations. )very
definition gives a unique perspective about quality.
ISO 9000: *egree to which a set of inherent characteristics fulfills requirements.* The standard
defines requirement as need or expectation+.
Six Sigma: *,umber of defects per million opportunities.*
Philip B. Crosby: *#onformance to requirements.* The requirements may not fully represent
customer expectations- #rosby treats this as a separate problem.
These definitions tal. about quality meeting pre/set criteria. 't is all about conforming to .nown
requirements.
0ollowing definitions tal. about consumer1s perspective. 2nd a consumer1s top priority is always
to get some functionality from the product.
Joseph M. Juran: *0itness for use.* 0itness is defined by the customer. ,oria.i 3ano and
others, present a two/dimensional model of quality: *must/be quality* and *attract efinitions
Robert Pirsig: *The result of care.*
eni!hi "agu!hi:
a. *4niformity around a target value.*
b. *The loss a product imposes on society after it is shipped.*
Taguchi tal.s about lac. of variations against set parameters. 2s attaining 5667 perfection is
impossible in real life situations, so Taguchi tal.s about getting as closer to perfection as
possible. $oreover, Taguchi harps on the issue of cost to the society in the long run if there is
bad quality in a product or service.
8et us ta.e an example of a spurious quality electric iron. The iron may lead to spoiling the cloth,
higher electricity bill, and even electric shoc..
#meri!an So!iety $or %uality: *2 subjective term for which each person has his or her own
definition. 'n technical usage, quality can have two meanings:
a. The characteristics of a product or service that bear on its ability to satisfy stated or implied
needs-
b. 2 product or service free of deficiencies.*
The definition by 2merican Society tal.s about subjectivity of quality. 0or a rural person
traveling in a ric.ety bus can mean comfort, while for the jet/set people an 2# taxi will give the
bare minimum comfort. Quality of a product or service refers to the perception of the degree to
which the product or service meets the customer9s expectations. Quality has no specific meaning
unless related to a specific function and:or object. Quality is a perceptual, conditional and
somewhat subjective attribute. 'n totality quality means conformance to pre/set criteria as well as
ability to satisfy the end user. 'f a pen is unable to write then the diamond studded on it is of no
use.
imensions of Quality "erformance:
Basi! &un!tional #spe!t
&eatures: #an1t give core benefit
#estheti!s: 8oo., finish, etc.
Reliability: 8ineage
'urability: ;ptimum life span
Ser(i!eability: )ase of getting serviced
Sa$ety: 2ir &ags
)ser*$rien+liness: <indows =s 8inux #ustomi(ability: 8ens attachment ,i.on
,n(ironmental*$rien+liness: 8ess pollution from #0# free refrigerators.
The top most dimension of quality is the functionality of a product. 0or example a mixer grinder
should be able to grind the hard turmeric, otherwise three speed gear box is of no use to the end
user. 0eatures are li.e add on benefits, li.e fancy attachments provided with the mixer grinder. 2
pleasant loo. will always add value to the product. 'f the mixer is from 4S%2 or "%'8'"S then
it will help the customer in buying decision. Ta.e the example of $aruti service centre advt
which tal.s about the possibility of finding one in the remotest corner of 'ndia. This is about
reliability and serviceability. The product should be safe and can be handled with .id1s gloves.
"opularity of <indows over other operating systems is a good example of user friendliness
winning over customers. 2pple i/"od has options of changing s.in which is ideal for the target
group shows the power of customi(ability in winning over customers.
Quality Planning
5. Set quality objectives and targets
>. Ta.e into account customer1s wants
?. "lan about mar.etability of the products.
@. #arry out pre/production process capability or quality deliverability studies.
A. )stablish the relative importance of the quality characteristics and specifications.
B. #ommunicate to the production line people and vendors supplying the raw materials.
C. )stablish statistical control techniques, charts and sampling plans.
D. )stablish training programmes.
"lanning for quality starts with setting quantifiable and measurable targets. <hile doing this the
organi(ation needs to .eep customer1s wants in mind. ;nce the quality objective is decided it is
important to thin. about the mar.et feasibility of the product. T2T2 ,ano can prove if Eatan
Tata was wrong or right when he planned for the people1s car of 'ndia. ;nce everything is
planned the organi(ation needs to asses its capability to deliver the target quality. 'f there is gap
in capability then the organi(ation needs to fill that gap by upgrading to the required technology
and s.ill sets.
&efore planning for #handrayan 'SE; must have thought about its capabilities to build and
deliver such a spacecraft. 2 ran.ing chart should be developed to finali(e the most important
aspect of quality planning and more focus should be given to that aspect. #ommunicating the
target and plan to frontline people is important because they are the people who will implement
everything in the real life situation. They should be properly convinced before starting the new
course. "lan to monitor the progress of quality programme is important. This can be done by
devising ways and means to monitor progress and finding and correcting deviations.
Costs o$ %uality: F$aintaining the quality at least possible cost.+ The ultimate goal of an
organi(ation is to earn profits. So .eeping the cost at minimum possible level is important.
;therwise the higher input cost may not permit the ultimate aim of the organi(ation.
#ost of quality involves following aspects:
5. #ost of 2ppraisal
>. #ost of "revention
?. #ost of 0ailure
Costs o$ #ppraisal: 'nspection, Testing, $onitoring #ontrol This is about assessing the current
situation. This will involve man/hour and resources.
Costs o$ Pre(ention: "revention requires man/hour as personnel need to be deployed to inspect
the raw material and finished goods. 2s per an old saying prevention is always better than cure,
so the organi(ation should strive to prevent bad quality product from going down the supply
chain.
Costs o$ &ailure: #ost of failure needs to be planned out in advance as no matter how much
precautions are ta.en failures are part of life.
#nalysis o$ Costs o$ %uality
Category to !ategory !omparison: #omparing the relative amounts spent on each of the above
mentioned cost categories.
"ime to time !omparison: #omparing one quarter1s operations with the previous quarter1s
operations. The comparative analysis of cost of quality can give an idea about where to focus
more to improve further.
Total Quality Management Objective:
5. Total customer satisfaction
>. Totality of functions
?. Total range of products and services
@. 2ddressing all aspects of dimensions of quality
A. 2ddressing the quality aspect in everything G products, services, processes, people,
resources and interactions.
B. Satisfying all customers G internal as well as external
C. 2ddressing the total organi(ational issue of retaining customers and
D. 'mproving profits, as well as generating new business for the future.
H. 'nvolving everyone in the organi(ation in the attainment of the said objective.
56. emanding total commitment from all in the organi(ation towards the achievement of the
objective.
Total means 5667, so TQ$ is about managing all aspects of quality and ultimate goal should be
the ITotal #ustomer Satisfaction1. )very functional area should stic. to the quality plan of the
organi(ation and strive to attain the planned quality target. )ach offering from the organi(ation
should be of optimum quality. &ecause, Fone rotten apple can spoil the whole bas.et.+
TQ$ is about addressing all aspects of dimensions of quality. 'f there is a good product in bad
pac.aging it is not going to give the desired returns to the organi(ation. 2 good car with a bad
bumper will tarnish the image of the company. 2n ill tempered receptionist can turn away
potential customers from a nice A/star hotel. So people and process should match the quality of
the product being offered by the organi(ation. 2 satisfied employee will always bring a satisfied
customer, so internal customers are also important. 2ll hygiene factors and motivation factors
should be maintained to satisfy the needs of the internal customer. Eetaining internal customer is
important for better .nowledge management and continuity of the process. Eetaining external
customer is important to get repeat sales. 't is always easier to get repeat sales from existing
customers than to get sales from a new customer. )verybody, right from the shop/floor employee
to the top management, should have total commitment to the predetermined quality goals.
History of TQM
)ffect of 'ndustrialisation on wor.manship
<.2. Shewart J5H>@K Statistical charts for &ell Tele
%. 0. odge ! %.L. Eoming: 2cceptance sampling as a substitute for 5667 inspection in
&ell.
5H@B 2merican Society for Quality #ontrol formed later changed to 2merican Society for
Quality
5HB6s Mapanese management started quality control circles.
Thin. about quality concept which a road side trin.et seller may be having. Thin. about the
quality concept your neighbourhood barber may be having. 8et us assume there are two haircut
salons. ;ne is a roadside one which uses the nearby tree to hang the mirror and gets its own set
of customer. 2nother is a swan.y air/conditioned one, which charges premium on every service.
&oth .inds have their own niches but having a big difference in quality. Thin. about the quality
concept which the nearby omino1s may be having. ;ne can get every bit of history of quality in
a wonderful country li.e 'ndia.
Barriers to TQM Imlementation
5. 8ac. of $anagement #ommitment
>. 'nability to #hange #ulture
?. 'mproper "lanning
@. 8ac. of #ontinuous Training
A. 'ncompatible ;rgani(ational Structure
B. 'solated 'ndividuals and departments
C. 'neffective $easurement Techniques
D. 8ac. of 2ccess to ata
H. 'nadequate 2ttention to )xternal ! 'nternal #ustomers
56. 'nadequate )mpowerment and Teamwor.
11. Failure to Continually Improve
If the top management takes quality as a form of window dressing then the organization
is not going to attain the desired goal. Companies which maintain quality only during the
time of inspection by ISO personnel cant achieve quality goals. It is difficult but
important to change the culture of the organization. aradigm change is needed to force
people to strive for the new quality goal. !he way "ack #elch managed change in $% is
a very good e&ample of people involvement in change management. 's quality is a
continuous and never ending process( so is the training. %ven the whole lifetime is not
enough for complete learning. So training should go on forever. !his is important
because customers preferences keep on changing. SO)* can be a good e&ample of
an organization keeping pace with customers preference change. SO)* tape+recorder
made the gramophone an obsolete product. ,ater on #',-.') changed the way for
portable music. 't present even #',-.') is an obsolete product and SO)* sells
./ players by the same brand name. eople should not live in silos. !hey should
come out to facilitate better interactions to share knowledge. eople should be
empowered to sort out issues. !his will reduce the throughput time. Obviously
accountability is important along with empowerment. If a frontline personnel is
empowered to sort out customers problems then it will save precious time of the top
management.
!"MM#$%: 0uality is having different meanings for different people. In spite of this any
organization aiming for sustainable competitive advantage needs to assess customers
needs to fi& a quality ob1ective. Immaculate planning is required to attain the pre
decided quality goals. roper monitoring and peoples involvement can ultimately
enable an organization to achieve the desired results. In the long run the good quality
always wins the customers heart.