Total Quality

Management

Anubha Maurya

Total Quality Management

 SECTION A: TOTAL QUALITY MANAGEMENT

1. INTRODUCTION
 Meaning of quality – orientation to customer satisfaction

Scope of TQM
 Basics and Imperatives of TQM

Cost of quality and its relevance to TQM

Concept of Kaizen and continuous improvement
 2. STATISTICAL QUALITY CONTROL

Concept of SQC
 Acceptance sampling and inspection plans

Statistical process control
 Process capability studies

3. PEOPLES ISSUES IN TQM
 Leadership issues

Total employee involvement
 5 S concept

Quality circles
 4. QUALITY MANAGEMENT SYSTEMS

Quality audits
 Lead assessment & ISO - 9000

5. QUALITY GURUS AND LEARNINGS FROM THEM
 Issues on quality by Demming, Crosby, Taguchi, Juran, and other experts
A Brief History of Quality
Management
 Historical uses of quality management
include the precision involved in building
of Egyptian pyramids, interchangeable
parts during Industrial Revolution, and
statistical tools used for quality control
during World War II.
 Dr. Joseph Juran and Dr. W. Edwards
Deming were pioneers in the field (more
later on these two quality gurus).
 The Japanese integrated quality ideas and
methods throughout their organizations
and developed a culture of continuous
improvement.
CURRENT DEMANDS FROM ORGANISATIONS

• To understand what customer wants

And to provide it , immediately on demand ,
At lowest cost

• To provide products & services of high quality and

reliability consistently

• To keep up with pace of change , technological as well

as political and social

• To be one step ahead of the customer’s needs ; that is ,

to predict what the customer will want one year or
ten years from now

Customer means internal customer as well

 What is Quality?
Continuous Satisfaction of
Customer Requirements

A ‘Customer-Centric’ View
Quality
 Quantified as
 Q Quantity
 P Performance
 E Expectation

 Q=P/E i.e Q has to be > 1

What is
Quality
Management?
Achievement of Quality
at Low Cost.
QUALITY MANAGEMENT TRIANGLE
COMMITMENT
TO NEVER-ENDING QUALITY IMPROVEMENT

INVOLVEMENT SCIENTIFIC
KNOWLEDGE
What is
Total Quality
Management?
Attainment of
Total Quality
Through Everyone’s
Commitment on a Daily Basis
SO …..
Quality is a state in which value
entitlement is realized for the customer
and provider in every aspect of the
business relationship.

Business quality is highest when the

costs are at the absolute lowest for both
the producer & consumer and is most
readily attained when the entirety of
Understanding Quality
 Quality can be a confusing concept,
partly because people view quality in
relation to differing criteria based on their
individual roles in the value chain, such
as:
 perfection,
 delighting or pleasing the customer,
 eliminating waste,
 doing it right the first time, and/or
 consistency.
Understanding Quality
• Fitness for use is the ability of a
good or service to meet customer
needs.
• Quality of conformance is the
extent to which a process is able to
deliver output that confirms to
design specifications.
• Specifications are targets and
tolerances determined by designers
of goods and services.
Understanding Quality
• Quality Control means ensuring
consistency in processes to achieve
conformance.
• Service Quality is consistently
meeting or exceeding customer
expectations (external focus) and
service delivery system performance
criteria (internal focus) during all
service encounters.
Traditionally Quality has 3 main dimensions

• Performance
• Price
• Promptness

In present context , following more dimensions

should be added to Concern for Quality –

• Global competitiveness
• Concern for environment
• Concern for safety ( for Transport Orgn. )
 QUALITY GURUS ….

JURAN – QUALITY TRILOGY

•QUALITY PLANNING , QUALITY IMPROVEMENT
PROJECTS , QUALITY CONTROL

CROSBY – QUALITY IS FREE

•ZERO DEFECTS , DO IT RIGHT FIRST TIME , ASSIGN
MONEY VALUE TO NON – CONFORMANCE TO
QUALITY

TAGUCHI - LOSS FUNCTION

LOSS TO SOCIETY IS PROPORTIONAL TO SQAURE OF
DEVIATION FROM THE TARGET
Why TQM?
Ford Motor Company had operating losses
of $3.3 billion between 1980 and 1982.
Xerox market share dropped from 93% in
1971 to 40% in 1981.
Attention to quality was seen as a way to
combat the competition.

Total Quality Management

TQM
 Total - made up of the whole
 Quality - degree of excellence a product or service

provides
 Management - act, art or manner of planning,

controlling, directing,….

Therefore, TQM is the art of managing the whole

to achieve excellence.
excellence

Total Quality Management

What does TQM
mean?
Total Quality Management means that
the organization's culture is defined by
and supports the constant attainment of
customer satisfaction through an
integrated system of tools, techniques,
and training. This involves the
continuous improvement of
organizational processes, resulting in
high quality products and services.
Total Quality Management
Six Basic Concept

1- Committed and Involved management

2-Focus on Customer
3-Involvement
4-Continous Improvement
5-Suppliers as partner
6-Est performance measure for process

Total Quality Management

What’s the goal of
TQM?

“Do the right things right the

first time, every time.”

Total Quality Management

Another way to put
it
 At it’s simplest, TQM is all managers
leading and facilitating all contributors in
everyone’s two main objectives:
(1) total client satisfaction through
quality products and services; and
(2) continuous improvements to
processes, systems, people, suppliers,
partners, products, and services.
Total Quality Management
Intangible Benefits of Implementing
TQM
• Image of the organization has improved.
• Reduction in inventory.
• Shorter lead time in design, manufacturing, procurement
service etc.,
• Reduction in rejections and complaints.
• Customer satisfaction.
• Quality cost % to turnover reduction.
• Reduction in deviation.
• Continuous improvement.
• Drastic reduction in defectives and number of defects.
 Scope of TQM
• Commitment by senior management and all employees
• Meeting customer requirements
• Reducing development cycle times
• Just In Time/ Flow Manufacturing
• Improvement teams
• Reducing product and service costs
• Systems to facilitate improvement
• Employee involvement and empowerment
• Recognition and celebration
• Challenging quantified goals and benchmarking
• Focus on processes / improvement plans
Productivity and
TQM
 Traditional view:
• Quality cannot be improved without
significant losses in productivity.

TQM view:
• Improved quality leads to improved
productivity.

Total Quality Management

Old Vs New Culture
Quality Elements Previous TQM

Definition 
Product Oriented
 Cm Oriented

Priorities 
2nd to Service & cost
 First

Decision 
Short term
 Long term
Emphasis  Prevention
 
Detection
Errors
 System
 
Operation
Responsibility 
 Everyone

Quality Control
Problem solving
 Teams

Managers  Life cycle cost

Procurement  Price  Delegate,
 Manager Role  Plan Assign control coach, facilitate
enforce
Total Quality
Management
and Continuous
Improvement
TQM is the management process used to make
continuous improvements to all functions.
 TQM represents an ongoing, continuous
commitment to improvement.
 The foundation of total quality is a management
philosophy that supports meeting customer
requirements through continuous improvement.

Total Quality Management

Continuous
Improvement versus
Traditional Approach
Traditional Approach Continuous
Continuous Improvement
Improvement

Market-share focus 
Customer focus

Individuals 
Cross-functional teams

Focus on ‘who” and “why”  Focus on “what” and “how”

Short-term focus 
Long-term focus

Status quo focus 
Continuous improvement

Product focus 
Process improvement
 Innovation focus

Fire fighting

Incremental improvements
 Problem solving

Total Quality Management

The TQM System
Objective Continuous
Improvement

Principles Customer Process Total

Focus Improvement Involvement

Leadership
Elements Education and Training Supportive structure
Communications Reward and recognition
Measurement

Total Quality Management

OBSTACLES
• Lack of Management Commitment
• Inability to change org culture
• Improper Planning
• Lack of Continuous Training and Education
• Ineffective Measurement technique and
lack of access of data and result
• Paying inadequate attention to Internal and
External customer
• Failure to continually improve
COST OF QUALITY
 Failure costs -costs caused by defective
parts, products, or faulty services .
Internal -failures discovered during
production (e.g. rework, problems,
material/product losses, downtime) .
External -failures discovered after
delivery (e.g. warranty, returned goods,
liability claims, penalties)
COST OF QUALITY
 Appraisal costs -costs of activities designed
to ensure quality or uncover defects (e.g. in-
line inspection, final inspection, field testing,
crash test dummies, crumpled cars)

Prevention costs -costs of preventing defects
from occurring (e.g. training, working with
vendors, quality control procedures, quality
improvement programs, extra attention in
design and production)
Total Quality
Management

Anubha Maurya

Total Quality Management

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Total Quality Management (TQM) can be seen as a continuously evolved management system, consisting of values, methodologies and tools. The
aim of the system is to increase external and internal customer satisfaction with a reduced amount of resources. It is important to note, that the
techniques and tools in the figure are just examples and not a complete list. In the same way the values may also vary a little between different
organisations and over time. (From Hellsten & Klefsjö, 2000.)
A STRATEGY FOR
PERFORMANCE
EXCELLENCE
 Continuous Improvement

Is the continuous elimination

of waste
 What Does Kaizen
Mean?

KAI + ZEN
To modify, to change Think, make good, make
better

= KAIZEN
Make it easier by studying it, and making the improvement
through elimination of waste.
 Why Kaizen CPI (Continual Performance Improvement)
Process
Improvement Project
• Data Driven Methodology to Magnify Impact of
Implemented
Process Improvement
Savings

• Apply Control Techniques to Eliminate Erosion of

Improvements
Maintenance of
Process
Performance
• Proceduralize/Standardize Improvements for
Improved Maintenance of Critical Process Parameters

Time
CPI Project
Savings CPI Projects Emphasize
Control and Long Term
Maintenance

Kaizen Time Kaizen

Savings
• Use Small Teams to Optimize Process Performance
CPI
by Implementing Incremental Change
• Apply Intellectual Capital of Team Members Intimate
with Process
Kaizen Projects
Emphasize Incremental
Improvements Time
Kaizen
• Total focus on a defined process to create
radical improvement in a short period of
time
• Dramatic improvements in productivity,
quality, delivery, lead-time, set-up time,
space utilization, work in process, workplace
organization

http://www.managementguides.com. All Rights 38

Continous Process
Improvement

What is Process? – Activity of an
organisation (business / production)

All non conformance can represent
opportunity.

It is the interaction of some combination
of people, material, equipment, method,
measurment
 All process should have one owner
 What is improvement ? –

 Reduce resources (distributed to more people)

 reduce error (typing error, print??)
 meet expectation, (delighting the cm)
 make process safer (fewer accident)
 make the process more satisfying to the person who
is using it. (satisfying worker, eg change of chair)
 The Deming Cycle

• Plan: study current situation

• Do: implement plan on trial basis
• Study: determine if trial is working
correctly
• Act: standardize improvements
PDCA Cycle

P-Identify opportunity (brainstoring, pareto, alarming, complaints)

 P-Analyse the process (Current status, flow chart, 5W1H)


P-Develop the optimal solution (create new process, or
combine different process, modify existing )


D-Implement (Why, how when, who where)


C-Study the result (montior and evaluate)


A-Standardize the solution (Institutionalize, ownership)


A-Plan of the future
Observe the Current
Process
• Crucial first step in process improvement
• Deep understanding of the existing
processes and dependencies
• Identify all the activities currently involved in
developing a new product
• Observe the process first hand
• Flowchart the process
• Take measurements – time, yield, travel
• distance
Identify Value Added (VA), Non-Value Added
Required (NVA-R), and Non-Value Added
• (NVA)
Generally creates more questions than
answers
http://www.managementguides.com. All Rights 44
Difference b/w Kaizen and
Innovation

 Effect is long term  Effect is Short


Small step pace 
Big Step

Continous 
Intermittent
 Gradual, constant  Abrupt


Everybody 
Champions

Group effort  Individual idea

 Small investment 
Large investment
Focus on
 Value added and Non value added

MUDA refers to seven waste
• The waste of Overproduction ,The waste of
Processing The waste of Time , The waste
of Inventory , The waste of Motion , The
waste of Unacceptable items (defects), The
waste of Movement (transportation)
 Principle of motion handling, material

handling.
 Documentation of SOP

FIVES- Seiko, seition, seiketso, seiso,
shitsuke

Visual Management

JIT
 Poka Yoke


Team Dynamics
FIVE s
 Sorting

Systematic Arrangement

Spic and Span
 Standardization


Self discipline
Introduction
• 5S is a method to improve and sustain workplace
organization
• 5S represents 5 disciplines for maintaining a visual
workplace (visual controls and information
• systems).
These are foundational to continual improvement
and a manufacturing strategy based on "Lean
Manufacturing" (waste removing) concepts.
• Reduces clutter
• Reduces the time it takes to look for tools and
• equipment
“A place for everything and everything in its place”
• Improves how the operation appears to customers –
always be “tour ready”
• Creates pride in the workplace

• Many companies have a standard that any tool

must be able to be found within 60 seconds.
Components and
Implementation
• Elements of 5S
– Sort
– Straighten
– Shine
– Standardize
– Sustain
– Safety

• Visual Factory
• Implementation plan

http://www.ManagementGuides.com. All Rights 50

Elements of 5S
• Sort
– Remove all unnecessary materials and equipment
• Straighten
– Make it obvious where things belong
• Shine
– Clean everything, inside and out
• Standardize
– Establish policies and procedures to ensure 5S
• Sustain
– Training, daily activities
• Safety (often called “6S” or “5S + 1”)
– A safety commitment in all activities
The Good, Bad and
the Ugly

• First the Bad and the Ugly - Life Without 5S

 Examples – Sort and
Straighten

See the difference?

• Sort - All unneeded tools, parts and supplies are removed from the
• area
Straighten - A place for everything and everything is in its place

http://www.ManagementGuides.com. All Rights 53

 5S Implementation
1. Begin reviewing your areas for 5S
2. Discuss 5S with each of your groups (brief
group meeting)
3. Red tag sorting process (one time)
4. Brief, simple daily 5S individual activity
(“just look around”)
5. Brief 5S checklist or procedure for each
6. area
Monthly 5S audit beginning __________
• Area Lead plus at least one person from outside that
area
• Post results (I will look for them!)
• Review results with your group
• Take corrective action
54
Red Tag Process
• One-time activity to remove or disposition
• clutter
To be started within two weeks of this
training
1. Identify clutter, unused equipment, etc
2. Fill out and attach red tag
3. Note in red tag log
4. Red tags must be dispositioned within 30
days

http://www.ManagementGuides.com. All Rights 55

 Visual Control & the Workstation

To Sort To Straighten
Ensure space for each
Eliminate what’s thing, and a thing for
not absolutely each space. No more
necessary searching.

The To Sustain

5S Maintain
continuous effort.
This is a way of
life. To Sweep
To Sanitize Maintain a clean and
orderly space to
Improvement of make problems easily
the workstation. identifiable.
Be organized to Eliminate rejects and
reduce clutter. scrap..