1.introduction to quality & total quality management

TOTAL
QUALITY
MANAGEMENT
By: -
Hakeem–Ur–Rehman
Certified Six Sigma Black Belt (SQII – Singapore)
IRCA (UK) Lead Auditor ISO 9001
MS–Total Quality Management (P.U.)
MSc (Information & Operations Management) (P.U.)
IBIT–PU
T MQ
UNDERSTANDING QUALITY & TQM CONCEPTS
1

WHAT IS TQM?
 TOTAL: Everyone associated with the company is involved
in CONTINUOUS IMPROVEMENT (including its customers &
suppliers if feasible)
 QUALITY: Customer’s expressed and implied needs and
requirements are met fully
 MANAGEMENT: Executives are fully committed.
TQM is a system approach for the continuous improvement of
all organizational processes through total participation of all
employees, resulting in high quality products and services to
attain customer satisfaction.
2
TQM: PHILOSOPHY
“DO THE RIGHT THINGS, RIGHT THE FIRST TIME, EVERY TIME”

Marketing
Total Quality
Management
System
Design
Purchasing
Production
Warehousing
Distribution / Service
Learning & Knowledge Mngt.
DELIGHTED CUSTOMER
TOTAL QUALITY MANAGEMENT (TQM)
&
TOTAL ORGANIZATIONAL EXCELLENCE (TOE)
3

WHO DETERMINES QUALITY?
THE CUSTOMER
“Any one who receive or is affected by the
product, service, or process.”
CUSTOMER IS GOD
(CHINESE SAYING)
CUSTOMER IS KING
(JAPNESSIES SAYING)
4

CUSTOMERS’ NEEDS
• EXPECTED NEEDS
– Are typically what one gets by just asking customers
what they want.
• STATED NEEDS
– Are the obvious / compulsory requirements. For example,
if meal is served hot, customers hardly notice it. If it's
cold or too hot, dissatisfaction occurs. Expected
requirements must be fulfilled.
• LATENT NEEDS
– Beyond the customer's expectations.
– If provided , customer would be excited
– If not ,they would hardly complain

TQM: A “CULTURAL” CHANGE
 Responsibility is pushed down to “empower” the
people who know the most about the job,
process or service.
 TQM focus is on the process;
 TQM separates the improvement process from
people personalities and egos. “Top-down”
management styles disappear.
 Reporting levels are reduced/streamlined.
 Management’s role shifts to more emphasis on
coaching.
 Jobs are not eliminated, but job content may
change
6

PROCESS IMPROVEMENT CYCLE
7
PDCA
CYCLE
PLAN
DO
CHECK
ACT
DEVELP AN IMPROVEMENT PLAN
 Define the problem
 Formulate critical success factors
related to the vision
 Formulate objectives
Define performance measures &
targets
IMPLEMENTANT THE
IMPROVEMENT PLAN
ON THE LIMITED
SCALE
 Collect data
 Train those involved
 Describes the business
processes
 Formulate project teamCHECK IF IT WORKS
 Evaluate the trail project
 Provide Feedback
 What have we learned?
IMPLEMENT THE
VERIFIED
IMPROVEMENTS
 Document them in
standard procedures
 Train those involved
 Repeat the cycle
PDCA CYCLE

THE
DEMING
CHAIN
REACTION
8
Improve Quality
Costs decrease
because of less rework, fewer
mistakes, fewer delays, snags,
better use of machine-time and
materials Productivity Improves
Productivity Improves
Capture the market
with better quality and lower price
Stay in business
Provide jobs and more jobs

QUALITY CONTROL VS. INSPECTION
PRODUCTION
TESTING
LABS
ADMIN,
QA
PROCESS
MAINT.
FINANCEPROCESS
MIXED
PRODUCT
C/A
Process and/or
Systems
Fixing
Cycle B
PRODUCT/
SERVICE
FIXING
Cycle A
Not
OK
Measu-
rement
OK
Standard
CORRECTIVE ACTIONS: Action taken to
eliminate the cause of a detected nonconformity or
other undesirable situation. (ISO 9000:2000)
 The operational techniques and activities that are used to fulfill the requirements for
quality. (ISO–9000)
 This general area may be divided into two main sub areas:
– Statistical Process Control
– Acceptance Sampling Plans
 INSPECTION + Corrective action

Product
Fixing
OK
Not
OK
PRODUCT
Performance
PROCESSES
Product, Process or
Systems Fixing &
Improvement
Customers
QUALITY CONTROL & QUALITY ASSURANCE
data
PROCESS
Performance
dataActions
Actions
DESIGN
Market
Customer
Legal
Benchmarks
Process
Financial
PREVENTIVE ACTIONS: Action
taken to eliminate the cause of a
potential nonconformity or other
potentially undesirable situation.
(ISO 9000:2000)
 Quality Assurance addresses the entire life cycle of a product, starting from the initial
product identification to final inspection, reliability in use and customer satisfaction.
 QUALITY ASSURANCE: All those planned and systematic activities implemented to provide
adequate confidence that an entity will fulfill requirements for quality.

QUALITY CONTROL
VS
QUALITY ASSURANCE
Quality Control
• Product
• Reactive
• Line function
• Find Defects
Quality Assurance
 Process
 Proactive
 Staff function
 Prevent defects
12

Product
Fixing
OK
Not
OK
PRODUCT
Performance
PROCESSES
Product, Process or
Systems Fixing &
Improvement
Customers
INSPECTION,
QC , QA & QM
data
FIELD
Performance
Product , Process or
Systems Fixing
& Improvement
data
Actions
PROCESS
Performance
dataActions
Actions
DESIGN
Market
Customer
Legal
Benchmarks
Process
Financial
An ongoing effort to provide Products / services that meet or exceed customer
expectations through a structured, systematic process for creating organizational
participation in planning and implementing quality improvements.

EIGHT QUALITY
MANAGEMENT PRICINIPLES
8 QUALITY
MANAGEMENT
PRINCIPLES
Mutually beneficial
supplier relationship
Customer-focus
Factual Approach
to Management
Leadership
Involvement of
People
Process Approach
System approach to
management
Continual
Improvement
14

WHAT IS QUALITY ?
 Fitness for Use or purpose
 Juran
 Quality is conformance to the requirements.
 Crosby
 Q=P/E
– Q= Quality
– P= Performance
– E= Expectations
 Q<1 Performance does not meet expectations
 Q=1 Performance equals expectations
 Q>1 performance is better than expectations

WHAT IS GRADE?
Category or rank given to different
quality requirements for products,
processes, or systems having the
same functional use.
16

WHAT IS QUALITY?
 David Garvin found that most definitions of quality were
either TRANSCENDENT, PRODUCT–BASED, USER–
BASED, MANUFACTURING–BASED, or VALUE–BASED.
 TRANSCENDENT:
 “Level of Excellence”
 PRODUCT BASED:
 “Product Attributes”
 USER BASED:
 “Fitness for intended use”
 VALUE BASED:
 “Quality Vs Price”
 MANUFACTURING BASED:
 “Conformance to specifications” 17

QUALITY PERSPECTIVES
Distribution
Customer
products
and
services
needs Marketing
Design
Manufacturing
TRANSCENDENT &
PRODUCT-BASED USER-BASED
MANUFACTURING-
BASED
VALUE-BASED
Information flow
Product flow
18

EIGHT DIMENSIONS
OF PRODUCT QUALITY
19
 Garvin (1987) provides eight components or dimensions of
quality
1 Performance Will the product do the intended job?
2 Reliability How often does the product fail?
3 Durability How long does the product last?
4 Serviceability How easy is it to repair the product?
5 Aesthetics What does the product look like?
6 Features What does the product do?
7 Perceived Quality What is the reputation of the company or
its product?
8 Conformance to
Standards
Is the product made exactly as the
designer intended?

SERVICE QUALITY DIMENSIONS
Parasuraman, Zeithamel, & Berry: Three marketing professors from Texas A
& M University, published a widely recognized set of service quality
dimensions.
 Tangibles
 Service Reliability
 Responsiveness
 Assurance
 Empathy
 Availability
 Professionalism
 Timeliness
 Completeness
 Pleasantness
20
TIME

WHAT IS QUALITY?
Differing Functional Perspectives on Quality
Functional Perspectives include:
 Supply Chain
 Engineering
 Operations
 Strategic Management
 Marketing
 Financial
 Human resource
21

ORGANIZATION’S
OUTPUT Vs OUTCOME
COMPANY
Quality of Sales
Quantum
of Sales
OUTCOME
OUTPUT

EXAMPLE
POST OFFICE  Number of Letters
 Number of Post Offices
 Number of Transactions
 Delivery Rate
 Damage Rate
 Transactions/day/person
UNIVERSITY  Number of Students
 Number of Teachers
 Number of Programs
 Number of Branches
 Graduate Competency Rate
 Job Placement Rate
 Difference in Market Salary
 % of Satisfied Graduates
 % of Satisfied Employers
PRODUCTION
DEPT.
 Number of items Produced
 Types of Product Produced
 % Defectives / Rejected
 Cost of Production/item
 Number of items/unit time
TESTING
DEPT.
 Number of tests
 Types of Tests
 Measurement Error %
 Delays of tests
 Cost of unit test
HRD  Number of persons hired
 Number of Trainings
 Core Competence
 Duration of vacant posts
 % of Poor Hiring
OUTPUT OUTCOME
Quality
Objectives

1.introduction to quality & total quality management

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