Unit – 1Introduction

QualityQuality is an attribute of a product or service that fulfils or exceeds human expectationAs per ISO 9000:2000 Quality means “The degree to which a set of inherent characteristics fulfils requirements”Oxford dictionary – “Quality is the degree of excellence”Fitness for use, fitness for purpose, customer satisfaction or conformance to requirementsQ = P/E,

Where, Q- Quality, P – Performance, E – ExpectationQ >1, Satisfaction

Need/Importance of QualityProvides competitive edgeReduces cost due to return, rework & scrapIncreases profit, productivity, brand image, product image & company good willGenerates satisfied customersHigh employee morale & improves productivity

Evolution of Quality1924 – W.A. Sehwart of Bell Telephone Laboratories – chart for control of product variables1942 – Statistical Quality Control1946 – ASQ – American Society for Quality Control1950 – Edward Deming – Lectures at Japan about quality1954 – Joseph Juran – at Japan Management’s responsibility to achieve quality1960 – Quality control circles1970 – US managers went to Japan to learn quality

Continued1980 – Concepts of TQM introduced1990’s – Rankings based on customer satisfactionISO 9000 – world wide Quality Management SystemISO 14000 – Environmental Management System

Definition TQM – Enhancement of traditional way of doing business

Proven technique to survive in world class competitionTotal – made up of the wholeQuality – degree of excellence a product or service producesManagement – Act, art, or manner of handling, controlling, directing, etc.

The Range From Services to Products

Dimensions of QualityPerformance – primary product characteristics. Eg – Usage, gaming

Features – Secondary characteristics. Eg – Camera, etc

Conformance - meeting specific standards

Reliability – Consistency of performance over a period

Durability – Useful life including repair

Service – Resolution of problems, service

Response – Human to human interface

Aesthetics – Sensory characteristics – Exterior finish

Reputation - Past performance

Dimensions of Service QualityReliabilityResponsivenessAssuranceEmpathyTangiblesOther Dimensions – Time, completeness, courtesy, consistency, accessibility, etc.

Characteristics of TQMManagement philosophy – guide to change

Customer oriented management system

Starts at the top – needs management commitment

Teamwork

Calls for planning

Continuous performance improvement at all levels

Achieving results by process based approach

Recognizes customer – supplier relationship

Considers supplier as a partner

Emphasizes importance of measurement

Interlinks various sub systems of the organization

Aims at meeting the dynamic needs of the customer

Aims to instil ‘prevention not an inspection’ ethic

Basic concepts of TQM1. Top management commitment

2. Focus on the customer

3. Effective involvement & utilization of entire workforce

4. Continuous improvement

5. Treating suppliers as partners

6. Establishing performance measures for the processes

TQM Framework

Principles of TQMCustomer requirements should be met

Agreed requirements from internal & external customers

Everybody should be involved from all levels

Regular two way communication between all

Identifying training needs & relating them with individual capabilities

Top management’s participation & commitment

Culture of continuous improvement

Emphasis on purchase & supply management

Every job must add value

Eliminate waste & reduce total costs

Focus on prevention of problems

Culture of promoting creativity

Performance measures must

Focus on team work

Barriers to implement TQMLack of management commitment

Lack of faith & support to TQM among management personnel

Inability to change organizational culture

Misunderstanding concepts of TQM

Improper planning

Lack of employee commitment

Lack of effective communication

Lack of continuous training & education

Lack of interest or incompetence of leaders

Ineffective measurement techniques

Non application of proper tools & techniques

Inadequate use of empowerment & team work

Inadequate attention to internal & external customers

Delay or non improvement of quality team’s recommendation

Potential benefits of TQMTANGIBLE BENEFITS

Improved product quality

Improved productivity

Reduced quality costs

Increased market & customers

Increased profitability

Reduced employee grievances

INTANGIBLE BENEFITS

Improved employee participation

Improved team work

Improved working relationships

Improved customer satisfaction

Improved communication

Enhancement of job interest

Enhanced problem solving

Better company image

Contribution of Quality Gurus

DEMING, JURAN & CROSBY

W. Edward Deming Deming – American senior quality guru

1928 – awarded doctorate in mathematical physics

1946 – expertise in SQC – was sent to Japan after WWII

1951 – after having impressed by his contribution, Japanese established the Deming Prize – annually awarded to firms that distinguish themselves with QMS

1956 – awarded the Shewart medal by American Society for Quality Control

1960 – Awarded by the Japanese Emperor with the Second Order

Published more than 200 books on Quality

Deming’s Contributions1. Deming’s 14 points on route to quality

2. Deming cycle or PDCA

3. Seven deadly diseases of Management

4. System of profound knowledge

Deming’s 14 Points1. Create constancy of purpose towards improvement of product & service

2. Adopt the new philosophy

3. Cease the dependence on inspection to achieve quality

4. End the practice of rewarding business based on price tag

5. Improve constantly and forever the system of production & service

6. Institute training on the job

7. Institute leadership

Continued8. Drive out fear

9. Break down barriers between departments

10. Eliminate slogans, exhortations and targets on workforce which ask for zero defects and new levels of productivity

11. Eliminate work standards (quota) on the factory floor

12. Remove barriers to pride of workmanship

13. Institute a vigorous program of education & self improvement

14. Put everybody on the company to accomplish the transformation

2. Deming Cycle or PDCA CycleSystematic approach to problem solving by Deming

Universal improvement method – idea to constantly improve

Reduces the difference between customer requirement & performance of the process

The cycle repeats itself

3. Seven Deadly diseases of Western Management

1. Lack of consistency of purpose

2. Emphasis on short term profit

3. Reliance on performance appraisal & merits

4. Reliance on financial figures

5. Staff mobility

6. Excessive medical costs

7. Excessive legal costs

4. System of Profound Knowledge

According to Deming, the four ingredients of the system of profound knowledge necessary to learn & practice are:

1. Appreciation for a system

2. Knowledge of statistical theory

3. Theory of knowledge

4. Knowledge of pshycology

Joseph M. JuranBorn in Romania (1904/0 and emigrated to America in 1912

1951 – “Quality Control Handbook”

Mid 1950 – Travelled to Japan to conduct seminar on planning, organizational issues, management responsibility for quality, etc.

Authored hundreds of papers & books

Awarded 30 medals & fellowships worldwide including Japanese Second Order of the Sacred Treasure by the Emperor

Juran’s Contributions1. Internal Customer

2. Cost of Quality

3. Quality Triology

4. Juran’s 10 step for Quality Improvement

5. The Breakthrough concept

1. Internal CustomerEnd person alone is not the customer

Each person along the chain is a customer – from product designer to final user

The person will be a process carrying out transformation activity

Juran’s “three role model”

Each participant played 3 roles

2. Cost of Quality Juran classified cost of quality into three classes:

i. Failure costs – scrap, rework, corrective actions, warranty claims, customer complaints, loss of customer

ii. Appraisal costs – Inspection, compliance auditing & investigation

iii. Prevention costs – training, preventive audit, & process improvement implementation

3. Juran’s Quality TriologyJuran viewed quality as fitness for use

Divided quality planning into 3 parts:

i. Quality Planning

ii. Quality Control

iii. Quality Improvement

4. Juran’s 10 steps for Quality Improvement

1. Build awareness of the need & opportunity for improvement

2. Set goals for improvement

3. Organize to reach the goals

4. Provide training

5. Carry out projects to solve problems

6. Report Progress

7. Give recognition

8. Communicate results

9. Keep score

10. Maintain momentum by maintaining annual improvement

5. The Breakthrough ConceptJuran’s breakthrough concerns with product/service life cycle

It is split into two areas:

i. Journey from symptom to cause

ii. Journey from cause to remedy

3. Philip CrosbyAmerican quality guru

Best known for ‘Zero Defects’ & ‘Do it right first time’

Written many books – “Quality is free”, “Quality without tears”, “Lets talk Quality and Leading: the art of becoming an Executive”

Founder of Carrer IV, Philip Crosby Associates Inc & Quality College

Crosby’s Contribution1. Four absolutes of quality

2. 14 steps to quality management &

3. Crosby’s quality vaccine

1. Crosby’s Absolutes for Quality Management

2. Crosby’s 14 Steps Proposed 14 steps to quality improvement process:

1. Establish & ensure management commitment

2. Form quality improvement teams (QIT) for quality improvement process, planning & administration

3. Establish Quality Measurements

4. Evaluate the cost of quality & explain its use as management tool to measure waste

5. Raise quality awareness among all employees

6. Take actions to correct problems identified in previous steps

7. Establish zero defects committee & program

Continued8. Train supervisors & managers in their roles & responsibilities in quality improvement

process

9. Hold zero defects day to reaffirm management commitment

10. Encourage individuals & groups to set improvement goals

11. Obstacle reporting

12. Recognize & appreciate all participants

13. Establish Quality Council

14. Do it all over again to demonstrate that improvement is a never ending process

3. Crosby’s Quality Vaccine