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What is Quality?
Quality is “fitness for use”
(Joseph Juran)
Quality is “conformance to requirements”
(Philip B. Crosby)
Quality of a product or services is its ability to satisfythe needs and expectations of the customer
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What is TQM?
Constant drive
for continuousimprovement and
learning.
Concern for
employee
involvement anddevelopment
Management
by Fact
Result Focus Passion to delivercustomer value /
excellence
Organisation
responseability
Actions not just
words(implementation)
Process
Management
Partnership
perspective(internal /
external)
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TQM is an integrated organisational approach in delighting
customers by meeting their expectations on a continuous basis
through everyone involved with the organisation working on
continous improvement in all services, products and processes
along with proper problem- solving methodology.
TQM is built on a foundation of ethics, integrity and trust. It
fosters openness, fairness and sincerity and allows involvement by
everyone. This is the key to unlocking the ultimate potential of TQM
Communication is a strong mortar of TQM. Communication
means a common understanding of ideas between the sender and
the receiver. The success of TQM demands communication with
and among all the organization members, suppliers and customers
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Evolution of TQM
The concept of Total Quality Management (TQM)
was developed by an American, W. Edwards
Deming, after World War II for improving the
production quality of goods and services. Mr.
Deming is regarded as ―The quality Guru who never gave up.‖
But it was the Japanese who adopted TQM more
seriously in 1950 to resurrect their postwar business
and industry, used it to dominate world markets by
1980.
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Contd.
The 1980‘s saw an explosion in the use of
statistical methods and quality methodology inboth manufacturing and non-manufacturing
organisations.
Mr. Subodh Bhargava, Chief Executive of Eicher,
recently revealed an interesting fact that TQM is
not new to India and its roots in Indian ancientscriptures like the Upanishads and the Srimad
Bhagavadgita.
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Importance of TQM for services sector
Total Quality Management is the key mantra for the manufacturing
industry, but its benefits have been better realized by intense
customer-oriented service industries — be it fast moving consumer goods (FMCG), retail, hospitality, telecom or banking.
In service organisations, the TQM challenge lies in establishing
smooth connectivity between business processes so as to retain the
customer.
A quality control approach to cover all processes would be beneficial
to every Organisation.. Since in a service industry every aspect of
quality is associated with every employee, quality Control department
has a key and a very important role to play.
Putting in place an effective TQM mechanism in a service industry
requires patience and commitment on the part of the management and
the workforce to satisfy the customer.
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Contd.
Over 60 % of the organization's future revenue will come from the existing
customers.
A 2 percent increase in customer retention has an equivalent impact
upon profitability as a 10 percent reduction in operating costs.
Upto 96% of unhappy customers do not in fact complain, but they are
three times more likely to communicate a bad experience to other customers than a good one
If a customer complains and the organization responds effectively to the
product or service failure, then the loyalty of the customer can actually
increase
It costs 5 times as much to attract a new customer as it costs to keep an
old one.
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― In the future there will be two kinds of companies
– those who have implemented Total Quality andthose who have gone out of business; you do not
have to do this since survival is not compulsory‖
-Dr. Edward Deming
The Principles of Total Quality Management
(TQM) are now recognised characteristic of most
of the successful businesses world over.
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Learning
LEARNING AND TQM
Process Improvement
Quality Improvement
Customer
Satisfaction
Shareholder
Satisfaction
Employee
Satisfaction
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TOTAL QUALITY MANAGEMENT
Continuous Improvement or Kaizen
Quality Circles
Benchmarking
Just-in-Time (JIT)
Taguchi Concepts
Knowledge of TQM Tools
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Kaizen Practice
Kaizen programme can be divided into three
segments depending upon the complexity.
1.Management- oriented Kaizen
2.Group- Oriented Kaizen
3.Individual- Oriented Kaizen
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Kaizen Movement or 5S movement
Seiri – straighten up
Seiton means putting things in order
Seiso means to clean up
Seiketsu means personal cleanliness
Shitsuke means discipline
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Quality Circle
QC is a small group of employees in the same workarea
or doing a similar type of work who voluntarily meet
regularly to identify, analyze and resolve work- related
problems , leading to improvement in their total
performance and enrichment of their worklife
Bharat Heavy Electricals Limited (BHEL), an engineering company was
the first one to initiate quality circles in India.
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Some organisations in India give different
Individual to quality Circles .. For instance
Air India- Jet Quality Circles, 7 Aces, Safe
Air Quality Circles, Quality Brothers etc..BHEL call Quality circles by their serial
numbers like QC1, QC2, QC3, QC4 etc..
Madras Motors- Vallavar, Ganga, Bharthi
etc..
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Benchmarking
Benchmarking is the systematic comparison of
elements of performance of an organisation
against those of other organizations, usually with
the aim of mutual improvement.
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Types of Benchmarking
Internal Benchmarking
Competitive Benchmarking
Functional Benchmarking
Generic Benchmarking
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Just In Time (JIT)
Just- in time is an approach to minimize waste in manufacturingin the form of time, materials, energy and error.
The objectives of JIT are
1) To reduce the set up times and lot sizes2) To achieve ‗zero defects‘ goal in manufacturing
3) To focus on continuous improvement
4) To eliminate waste and all non-value adding activities by systematically
identifying these.
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3M‘s- Muda, Muri & Mura
These 3 Ms should be avoided to implement of JIT
◘Muda means Waste
◘Muri means Excess
◘Mura means unevenness
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Taguchi Concepts
Taguchi Concepts provides an alternative for therelationship between the performance of cost andquality.
Taguchi further maintains that the relationship is quadratic
and the cost varies with the square of the deviation fromthe target . The Taguchi loss function is thereforerepresented by
L(Y) =K(Y-M)2 where
L= Loss associated with parameter YM= target expected
K= Constant
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Capability Maturity Model (CMM)
It is a way to develop and refine an
organization's processes mainly for the
purpose of developing and refining software
development processes.
The model describes the maturity of the
company based upon the project the company
is handling and the related clients.
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The CMM was originally intended as a tool to evaluate theability of government contractors to perform a contracted
software project. Though it comes from the area of
software development, it can be, has been, and continues
to be widely applied as a general model of the maturity of processes
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Pareto Analysis
Pareto, an Italian economist discovered a
universal relationship between value andquantity.
He used this technique for assessing
uneven distribution of wealth.
Pareto charts gave rise to ―80-20 rule‖ which
suggests that 80 percent of an organization's
problems came from 20 percent of its tasks.
Pareto Analysis helps in identification of the
―Vital few‖ from the ―trivial many‖ at a glance.
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Pareto Analysis can be carried out for the
problems of a company which are
contributed by the following:
Working Systems
Operating Costs
Facilities
Manpower
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Uses statistics & control charts to tellwhen to adjust process
Developed by Shewhart in 1920‘s
Involves Creating standards (upper & lower limits)
Measuring sample output (e.g. mean wgt.)
Taking corrective action (if necessary)
Statistical Process Control
(SPC)
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Process Control Chart
Plot of Sample Data Over Time
0
20
40
60
80
1 5 9 13 17 21
Time
S a m p l e V a l Sample
ValueUCL
Average
LCL
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National Awards of Different Countries:
Malcolm Baldrige National Quality Award (United States)
The Deming Prize (Japan)
Golden Peacock National Quality Award (India)
British Quality Award (UK)
Egyptian Quality Award
Turkish Standard Institution Award (Turkey)French National Quality Award
Australian Quality Award
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A list of Awards related to Quality
The Margaret Chase Smith Maine State Quality Award
Shingo Prize for Excellence in Manufacturing
The NASA Excellence Award/ George M. Low Award
The North Corolina Quality Leadership Award
Rajiv Gandhi Foundation Quality Award (India)
The Florida Sterling Award
California‘ s Eureka Award
Siemens and Sun Win Philip Crosby Award for Quality
Connecticut Quality Improvement Award
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The most prestigious Quality Awards in the World are
The Deming Prize
The Malcolm Baldrige National Quality Award and
The European Quality Award
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Some of the Award Winners of Macolm Baldrige National
Quality Award are:
1. Ames Rubber Corporation
2. AT&T
3. Eastman Chemical Company
4. Motorola Inc.
5. Zytec Corporation
6. Xerox Corporation- Business Products &Systems
7. The Ritz-Carlton Hotel Company
8. Marlow Industries
9. Cardillac Motor Car Company
10. IBM Rochester
11. Globe Metallurigical Inc.
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Big Growth of the Service Sector
According to the survey by the Economic Times in 1992, The service
sector is a the threshold of the tremendous growth . Service and
knowledge workers are estimated to constitute 80% of the workforce with
the manufacturing sector contributing to only the rest 20 percent.
According to a recent survey of the top ranking organisation in Europe ,89 percent of the respondents said that quality was the primary buying
argument for the ultimate customer.
TQM is supported and adopted not only by the manufacturing industries
but also by the banks, hospitals, educational institutions, hotels and
community development projects.