TQM

Total Quality Management

H. Ramasubramanian
(HRS)

Introduction
•
•

Everyone has had experiences of poor quality when dealing with product or service.
These experiences might involve
– an airline that has lost a passenger’s luggage,
– a dry cleaner that has left clothes wrinkled or stained,
– a purchased biscuit that tastes or smells bad,
– a product purchased does not work or broken or damaged, or
– poor course offerings and scheduling at college.

TQM - 2013 Nov - This is a compilation of available information in Internet & Books

2

Introduction ……..
•

•

•

The poor quality could be the result of employee
– Not notice quality lapse or
– Do not bother about it or
– Not empowered to correct quality inadequacies.
Today, we come across service employees do not care quality service.

The consequences of such an attitude are lost customers and opportunities for
competitors to take advantage of the market need.


3

Introduction ……..
•
•
•
•
•
•

•
•

Successful companies understand the powerful impact of customer-defined quality
to stay in their business.
For this reason many competitive firms continually increase their quality standards.
For example, both the Ford Motor Company and the Honda Motor Company have
announced that they are making customer satisfaction their number one priority.
The slow economy of 2003 impacted sales in
the auto industry.
Both firms believed that the way to rebound is through improvements in quality, and
each has outlined specific changes to their operations.
Ford focused on tightening already strict standards
in their production process and implementing a
quality program called Six-Sigma.
Honda, on the other hand, focused on improving
customer-driven product design.
Although both firms have been leaders in implementing
high quality standards, they believe that customer
satisfaction is still the top most priority.


4

Lecture objective
To know,
•

Need for Quality

•

Evolution of Quality

•

What is TQM

•

Basic concepts of TQM

•

Leadership

•

Strategic Quality Planning

•

Supplier partnership

•

Supplier selection, supplier rating and Partnering

•

TQM practices in Indian Industries


5

Lecture objective
To know,
•

Need for Quality

•


•

What is TQM

•


•

Leadership

•


•


•


•



6

Need for Quality
•

Definition of quality
– There is no single definition of quality.
• Conformance to specification
• Fitness to use
• Value for money
• After sale service support
• Psychological criteria
• Meeting customer needs
• Satisfying Customer
• and so on………..


7

Need for Quality …..
•

Definition of quality
– Conformance to specification
• measures how well the product or service meets the targets and
tolerances determined by its designers.
• conformance to specification is directly measurable, though it may not be
directly related to the consumer’s idea of quality.
– Fitness to use
• focuses on how well the product performs its intended function or use.
• fitness for use is a user-based definition in that it is intended to meet the
needs of a specific user group or location where it is used.


8

•

Definition of quality …..
– Value for money
• It is a definition of quality that consumers often use for product or service
usefulness for the money they paid.
• This is the only definition that combines economics with consumer
criteria; it assumes that the definition of quality is price sensitive.

– After sale service support
• How the quality of a product or service is judged.
• Quality does not apply only to the product or service itself; it also applies
to the people, processes, and organisational environment associated
with it.

9

•

Definition of quality ……….
– Psychological criteria
• It is a subjective definition that focuses on the judgmental evaluation of
what constitutes product or service quality.
• Different factors contribute to the evaluation, such as the atmosphere of
the environment or the perceived prestige of the product.
• For example, a hospital patient may receive average health care, but a
very friendly staff may leave the impression of high quality.
• Similarly, we commonly associate certain products with excellence
because of their reputation; Rolex watches, Mercedes-Benz, Saravana
Bhavan, Inox…..are examples.


10

Differences Between Manufacturing and Service Organisations
• Defining quality in manufacturing organisations is often different from that of services.
• Manufacturing organisations produce a tangible product that can be seen, touched, and
directly measured.
• Examples include cars, mobiles, clothes, computers, and food items. Therefore, quality
definitions in manufacturing usually focus on tangible product features.
• The most common quality definition in manufacturing is conformance, which is the degree
to which a product characteristic meets pre-set standards.
• Other common definitions of quality in manufacturing include
– performance—such as acceleration of a vehicle or pickup, mileage
– reliability—that the product will function as expected, all the time, without failure
– features—the extras that are included beyond the basic characteristics
– durability— expected operational life of the product

and

– serviceability—how readily a product can be repaired and how expensive it is.
•

The relative importance of these definitions is based on the preferences of each
individual customer. It is easy to see how different customers can have different
definitions in mind when they speak of high product quality.


11

Differences Between Manufacturing and Service Organisations …..
•
•
•

•
•
•
•

In contrast to manufacturing, service organisations produce a product that is
intangible. Usually, the complete product cannot be seen or touched.
Rather, it is experienced.
Examples include
– treatment in a hospital,
– experience of staying at a holiday resort / Hotel, and
– learning at a university.
The intangible nature of the product makes defining quality difficult.
Also, since a service is experienced, perceptions can be highly subjective.
In addition to tangible factors, quality of services is often defined by perceptual
factors.
These include
– responsiveness to customer needs,
– courtesy and friendliness of staff,
– promptness in resolving complaints, and
– atmosphere.

TQM - 2013 Nov - This is a
compilation of available

12

Differences Between Manufacturing and Service Organisations …..
•

•

Other definitions of quality in services include
– time—the amount of time a customer has to wait for the service; and
– consistency—the degree to which the service is the same each time.
For these reasons, defining quality in services can be especially challenging.

Dimensions of quality for manufacturing versus service organisations are shown
below
Manufacturing Organisations

Service Organisations

• Conformance to specifications

• Tangible factors

• Performance

• Consistency

• Reliability

• Responsiveness to customer needs

• Features

• Courtesy / friendliness

• Durability

• Timeliness / promptness

• Serviceability

• Atmosphere


13

Lecture objective
To know,
•

Need for Quality

•


•

What is TQM

•


•

Leadership

•


•


•


•



14

• The quality movement can trace its roots back to medieval Europe, where
craftsmen began organising into unions called guilds in the late 13th century.
• Until the early 19th century, manufacturing in the industrialised world tended
to follow this craftsmanship model.
• The factory system, with its emphasis on product inspection, started in Great
Britain in the mid-1750s and grew into the Industrial Revolution in the early
1800s.
• In the early 20th century, manufacturers began to include quality processes
in quality practices.
• After the United States entered World War II, quality became a critical
component of the war effort:
– Bullets manufactured in one state, had to work consistently in
rifles made in another state.
– The armed forces initially inspected virtually every unit of product.
– Then to simplify and speed up this process without compromising
safety, the military began to use sampling techniques for inspection,
– Military-specification standards were published.
– Training courses were conducted in statistical process control techniques.

15

Evolution of Quality…….
• The birth of Total Quality in the United States came as a direct response to the quality
revolution in Japan following World War II.
• The Japanese welcomed the input of Americans
Joseph M. Juran and W. Edwards Deming.
• People started focusing on improving all organisational processes through the people
who used them, rather than concentrating on product inspection.
• By the 1970s, U.S. industrial sectors such as automobiles and electronics had been
affected by Japan’s high-quality competition.
• The U.S. insisted on the approach of involving the entire organisation, not only the
statistics. This became known as Total Quality Management (TQM).
• By the last decade of the 20th century, TQM was considered as an intense and widely
shared enthusiasm by many business leaders.
• In the few years since the turn of the century, the quality movement seems to have
matured beyond Total Quality.


16

Evolution of Quality ……..
•

New quality systems have evolved from the foundations of Deming, Juran and
the early Japanese practitioners of quality, and quality has moved beyond
manufacturing into
– service,
– healthcare,
– education and
– government sectors too.

•

Now, more than ever before, processing costs and problems of repeatability can
stall new programs at the start.

•

Marginal improvements in the control of manufacturing processes,
– although useful in the short term,
– will not provide the required levels of quality, reliability, or economy of
production.


17

Evolution of Quality ……

Improvement in Product Quality

Figure depicts the shift in approaches used to ensure product quality as a function of time.

Quality
Through
Design

Inspection
1920

Statistical
Process
Control

Integrated
Design and
Manufacturing

Improved
Designs

1940
1960
Evolution of Quality Control


1980

2000
18

Evolution of Quality……..
•

Taguchi methods belong to the class of approaches that attempt to ensure
quality through design, in this case through the identification and control of
critical variables (or noises) that cause deviations to occur in the
process/product quality.

•

Taguchi methods, developed by Dr. Genichi Taguchi,
refer to techniques of quality engineering that makes both
statistical process control (SPC) and new quality related management
techniques as part of the system.
• Most of the attention and discussion on Taguchi methods has been focused on
the statistical aspects of the procedure; it is the conceptual framework of a
methodology for quality improvement and process robustness that needs to be
emphasised.
The entire concept can be described in two basic ideas:
1. Quality should be measured by the deviation from a specified target value,
rather than by conformance to pre-set tolerance limits
2. Quality cannot be ensured through inspection and rework, but must be built
in through the appropriate design of the process and product

19

Evolution of Quality ……
The basic difference between Taguchi methods and the SPC methodology.
• SPC methods emphasize the attainment of an attribute within a tolerance range
and are used to check product/process quality.
• Taguchi methods emphasize the attainment of the specified target value and the
elimination of variation
Upper Specification

100% Loss
SPC

Target

Lower Specification

100% Loss

Upper Specification

Taguchi
100% Loss

Target
100% Loss
Lower Specification

Comparison of methodologies


20

Cost of Quality
•
•
•

Organisations have gained an understanding of the high cost of poor quality.
Quality affects all aspects of the organisation and has dramatic cost
implications.
Poor quality creates dissatisfied customers and eventually leads to loss of
business.

– Quality Control Cost - The costs necessary to achieve high quality.
- Prevention costs - Costs to prepare and implement a quality plan.
- Appraisal costs - Costs of testing, evaluating, and inspecting quality.
– Quality Failure Cost - The cost - consequences of poor quality
- External failure costs - Costs of failure at customer site, including returns, repairs,
and recalls.
- Internal failure costs - Costs of scrap, rework, and material losses.
•

The first two costs are incurred in the hope of preventing the second two.


21

Cost of Quality …..
•
•
•

When you notice the issue and it costs what?
Companies that consider quality important invest heavily in prevention and appraisal
costs in order to prevent internal and external failure costs.
The earlier defects are found, the less costly they are to correct.


22

Cost of Quality …..
Visible

Testing Cost
Inspection

Warranty

Recalls

Rejects

Scrap

Customer returns

2-3
%

Rework

Complaint Handling

Hidden
Working capital
Unused capacity
Premium Freight
Engineering Changes
Wrong shipment

Long set-ups

Long cycle time
Planning Delay
Excess inventory

Late Delivery
Lost Sales
Excess overtime

20-40
%

Excessive Material orders / planning
Pricing / Billing errors


Lost customer loyalty
23

Evolution of Quality …..
Basic features and keys to the development – in Japan
•

The development effort needs an integrated team
– Depends heavily on team dynamics, procedures
– Even intangibles such as trust & loyalty.

•

Technology advances – software based

•

But development in cultural attitudes plays a major role in the success.

•

Look at the data from American Quality Foundation.

•

Commitment of over 500 companies – automotive, banking, computer & health care –
to five strategic quality elements.

Metric

US

Japan

Germany

Canada

Customer Satisfaction (Primary Consideration)

40

40

20

45

Competitive Benchmarking (Primary importance)

30

30

5

25

Time-based Competition (always Used)

20

55

10

20

Process simplification (always used)

10

50

10

20

Performance Evaluation (at least monthly)

55

70

55

50


24

Development & improvement of products & services, process & systems.

High
Level of technology newness

New to the world

Low

New to the company
&
Local market
Line Extension

Revision or
improvement
Cost reduction &
Repositioning

Low

Level of newness to the market


High
25

Lecture objective
To know,
•

Need for Quality

•


•

What is TQM

•


•

Leadership

•


•


•


•



26

What is TQM?
•

Total Quality Management
– Total quality management or TQM is an integrative philosophy of management
for continuously improving the quality of products and processes.
– TQM is based on the premise that
o Everyone is responsible for the quality of products and processes.
o Everyone involved with the creation or consumption of the products or
services offered by an organisation.
o It requires the involvement of
– management,
– workforce,
– suppliers, and
– customers,
o to meet or exceed customer expectations.

•

TQM is about meeting quality expectations as defined by the customer; this is
called customer-defined quality.


27

Lecture objective
To know
•

Need for Quality

•


•

What is TQM

•


•

Leadership

•


•


•


•



28

Basic Concepts of TQM
In order to achieve excellence, six basic concepts of TQM are as follows:
1. Top management should be aware of correct situation and needs to be
committed towards TQM implementation. A committed and involved
management to provide long-term top-to-bottom organisational support.
2. Focus customer requirements and product/service expectations. Unwavering
focus on the customer, both internally and externally.
3. Effective involvement and utilisation of the entire work force. Involve employees
in understanding the quality aspects and make them accountable.
4. Continuous improvement in the process is required. Continuous improvement
of the business and production process
5. Treat suppliers as your partners
6. Establish performance measures for the process. Develop tracking mechanism
for processes and improve it as per business requirements
These concepts outline an excellent way to operate a business organisation:

29

Basic Concepts of TQM…..
1. Management must participate in the quality program.
– A Quality Council must be organised to develop a clear vision, set long-term
goals, and direct the program.
– Quality goals are included in the business plan.
– An annual quality improvement program is organised and includes input
from the entire work force.
– Managers participate in the quality improvement teams and also act as
advisers to other teams.
– TQM is a continual activity that must be inculcated in the organisational
culture – it is not just a one-shot program.
– TQM must be known and communicated to all workers.

30

2. The key to an effective TQM program must be directed to customer
satisfaction.
– The best way to start is by satisfying customers.
– We must always listen to the “voice of the customer” and emphasize design
quality and defect prevention.
– Does it right the first time and every time, for customer satisfaction is the
most important commitment.


31

3. TQM is an organisation-wide challenge that is everyone’s responsibility.
– All workers must be trained in TQM, Statistical Process Control (SPC), and
other appropriate quality improvement skills so that they can effectively
participate in project teams.
– Including internal customers and, for that matter, internal suppliers in project
teams are excellent approach.
– Those affected by the plan must be involved in its development and
implementation.
– They should understand the process better than anyone else.
– Changing behaviour is the goal.
– People must come to work not only to do their jobs but also to think about
how to improve their jobs.
– Personnel must be empowered to perform processes in an optimum manner
at the lowest possible level.

32

4. There must be continuous improvement of all business and production process.
– Quality improvement projects, such as on-time delivery, order entry
efficiency, billing error rate, customer satisfaction, scrap reduction, and
supplier management, are good things to start.
– Technical techniques such as SPC, concurrent engineering, benchmarking,
quality function development, ISO 9000, and Taguchi’s quality design are
excellent for problem solving.

5. A partnering relationship with the supplier rather than an adversarial one must
be developed.
– Both parties have as much to gain or lose based on the success or failure of
the product or services.
– The focus should be on quality and life cycle cost rather than price.
– Suppliers should be few in number so that true partnering can happen.

33

6. Performance measures such as uptime, per cent nonconforming, absenteeism
and customer satisfaction should be determined for each functional area.
– These measures should be posted to everyone to see.
– Quantitative data are necessary to measure the continuous quality
improvement output.

•

The purpose of TQM is to provide a quality product or service to customer,
which will in turn, increase productivity and lower cost.

•

With a higher quality product and service and lower price, competitive position in
the market place will be enhanced.

•

These series of events will allow the business organisation to achieve the
objectives of profit and growth with the great ease.

•

Furthermore, the workers will have the security, which will create a satisfying
environment to work.


34

Quality Guru

Main Contribution

Walter A
Shewhart

Contributed to understanding of process variability
Developed concept of statistical control charts

W Edwards
Deming

Stressed management’s responsibility for quality
Developed “14 points’ to guide companies in quality improvements

Joseph M
Juran

Defined quality as “fitness to use”
Developed concept of cost of quality

Armand V
Feigenbaum

Introduced concept of Total Quality Control

Philip B
Crosby

Coined phrase “ quality is free”
Introduced concept of zero defects

Kaoru
Ishikawa

Identified concept of internal customers
Developed cause and effect diagrams

Genichi
Taguchi

Focused on product design quality
Developed Taguchi loss function


35

Features of TQM Philosophy
TQM Model

Total
Quality
Requirements
Customer
Orientation
Participation
Product /
Services

Training

Process /
Procedure

Customer
Orientation

Motivation

HR Excellence

Information Supplier

Product / Process
Leadership

Culture Planning Communication Accountability

Management
Leadership
36

Features of TQM Philosophy
Customer Focus
– Objective is to identify and meet customer needs
Continuous Improvement – A philosophy of NEVER ENDING improvements
Employee empowerment – Employees are expected to seek out, identify and
correct quality problems
Use of quality tools
– Ongoing employee training in the use of quality tools
Product design
– Products need to be designed to meet customer needs
Process management – Quality should be built into process; source of quality
problem should be identified and corrected
Managing supplier quality – Quality concepts must extend to their suppliers too.
Continuous Improvements:
– PDCA – Plan Do Check Act cycle
– Benchmarking


37

Quality Tools
Cause & Effect Diagram – A chart that identifies potential causes of particular
quality problem
Flow Chart - A schematic representation of sequence of steps involved in an
operation or process or procedure
Check List - A list of common defects and the number of observed occurrences of
those defects.
Control Charts – Charts used to evaluate whether a process is operating within the
set expectations
Scatter Diagram – Graphs that show how two variables are related to each other.
Pareto Analysis – A technique used to identify quality problems based on their
degree of importance
Histogram - A chart that shows the frequency distribution of observed values of a
variable.


38

Lecture objective
•

Need for Quality

•


•

What is TQM

•


•

Leadership

•


•


•


•



39

Leadership
Theory
•

Leadership is "organising a group of people to achieve a common goal".

•

The leader may or may not have any formal authority.

•

Studies of leadership have produced theories involving
– traits,
– situational interaction,
– function,
– behaviour,
– power,
– vision and values,
– charisma, and
– intelligence, among others.

•

Somebody whom people follow:

•

Somebody who guides or directs others.


40

Leadership …..
Early western history …..
•

In Heroes and Hero Worship (1841), Carlyle identified the talents, skills, and
physical characteristics of men who rose to power.

•

In Galton's Hereditary Genius (1869), he examined leadership qualities in the
families of powerful men.

•

After showing that the numbers of eminent relatives dropped off when moving
from first degree to second degree relatives, Galton concluded that leadership
was inherited.

•

In other words, leaders were born, not developed.

•

Both of these notable works lent great initial support for the notion that
leadership is rooted in characteristics of the leader.

Rise of alternative theories
• In the late 1940s and early 1950s, however, a series of qualitative reviews of
these studies prompted researchers to take a drastically different view of the
driving forces behind leadership.

41

Leadership …..
•

The search for the characteristics or traits of leaders has been on going for
centuries.

•

History's greatest philosophical writings from Plato's Republic to Plutarch's Lives
have explored the question
"What qualities distinguish an individual as a leader?"

• Underlying this search was the early recognition of the importance of leadership
and the assumption that leadership is rooted in the characteristics that certain
individuals possess.
• This idea that leadership is based on individual attributes is known as the "trait
theory of leadership".
•

The trait theory was explored at length in a number of works in the 19th century.

•

Most notable are the writings of Thomas Carlyle and

•

Francis Galton, whose works have prompted
decades of research.


42

Leadership …..
•

In reviewing the literature still in existence, Stogdill and Mann found that while
some traits were common across a number of studies,
– the overall evidence suggested that persons who are leaders in one
situation may not necessarily be leaders in other situations.
– Subsequently, leadership was no longer characterised as an enduring
individual trait, as situational approaches posited that individuals can be
effective in certain situations, but not others.
– This approach dominated much of the leadership theory and research for
the next few decades.


43

Leadership …..
•
•
•
•
•

Leadership for TQM
Attitude and Involvement of Top Management
Communication
Culture
Management Systems

Management is doing things right;
Leadership is doing the right things. – Peter Drucker
– A leader is one who introduces by
– gradual and persistent effort the purposes,
not the one who controls by brute force.

– A leader strengthens and inspires the followers to accomplish shared goals.

44

Leadership …..
– The leadership should set direction and create a customer focus.
– Create clear and visible values and high expectations.
– These direction values and expectations should balance the needs of all your
stakeholders.
– Ensure the creation of strategies, systems and methods for achieving
excellence, stimulating innovations and building knowledge and capabilities.
The values and strategies should help guiding all the activities and decisions of
your organisation.
– Inspire and motivate your entire work force. Encourage all employees to
contribute, to develop and to learn to be innovative and to be creative.
– Be a role model through your ethical behaviour.
– Involve personally in planning, communication, coaching to develop future
leaders.
• Getting quality results is not a short term, instant food way to improve
competitiveness.
• Implementing total quality management requires hands-on, continuous
leadership.

45

Leadership …..
Characteristics of excellent leadership
1. Visible, committed and knowledgeable
2. A missionary zeal – Be enthusiastic to persuade others to participate
3. Aggressive targets
4. Strong drivers
5. Communication of values
6. Organisation
7. Customer contact.


46

Leadership …..
1. Visible, committed and knowledgeable
– They promote the emphasis on quality, know the details and how well the
company is doing.
– Personal involvement in education, training and recognition.
– Accessible to and routine contact with the employees, customers and
suppliers.
2. A missionary zeal
– The leaders are trying to effect as much change as possible through their
suppliers, through the government suppliers, and through any other way that
promotes quality.
– Active in promotion of quality outside the company.
3. Aggressive targets
– Going beyond incremental improvements
– Looking at the possibility of making large gains,
– Getting the whole workforce thinking about different processes -not just
improving processes.

47

Leadership …..
4. Strong drivers
– Cycle time, zero defects, six sigma or other targets to drive improvements.
– Clearly defined customer satisfaction and quality improvement objectives.
– Communication of values
– Effecting cultural change related to quality.
– Written policy, mission, guidelines and other documented statements of
quality values, or other bases for clear and consistent communication.
5. Communication of values
– Effecting cultural change related to quality.
– Written policy, mission, guidelines
– Other documented statements of quality values, or
– Other bases for clear quality values, and consistent communication.


48

Leadership …..
6. Organization
– Flat structures that allow more authority at lower
– Empowering employees.
– Managers as coaches rather than bosses.
– Cross-functional management processes
– Functional management processes
– Focus on internal as well as external customers.
– Inter--departmental improvement teams.
7. Customer Contact
– CEO and all senior managers are accessible to customers


49

Leadership …..
Design
Manufacturing

Quality

Service Support

Leader

Marketing

Product Cost
Test
Procurement


50

Leadership …..

Stages of collocation or coordination or collaboration
Stage 1
Department Level

Stage 2
Team Level

Stage 3
Virtual Level

Engineering / Design

Purchase

Manufacturing


51

Leadership …..


52

Characteristics of High-Performing Team
Task related qualities

People related qualities

1.Concern for quality

1.High involvement, work interest and

2.Oriented towards success

energy

3.Committed to the projects / Tasks

2.Capacity to solve conflicts

4.Results oriented attitude

3.Good communication

5.Innovative & creative

4.Good team spirit

6.Willingness to change project plan if

5.Mutual trust

required

6.Self development of team members

7.Ability to predict trends

7.Effective organisational interfacing

8.On-time performance

8.High need for achievement

9.On-budget performance

53

Leadership …..

Executive

Level 5

Effective Leader

Level 4

Competent Manager

Level 3

Contributing Team Member

Level 2

Highly Capable Individual

Level 1


54

Lecture objective
•

Need for Quality

•


•

What is TQM

•


•

Leadership

•


•


•


•



55

Definition:
1. The science and art of using all the forces of a nation to
execute approved plans as effectively as possible during
peace or war. The science and art of military command as
applied to the overall planning and conduct of large-scale
combat operations.
2. A plan of action resulting from strategy or intended to accomplish a specific goal.
3. The art or skill of using stratagems in endeavours such as politics and business.


56

Strategic Quality Planning …..
The relation of Strategic Planning and Total Quality Management
• When an organisations chooses to make quality a major competitive edge
(differentiation), it becomes the central issue in strategic planning.
• This is especially reflected in vision, mission and policy guidelines of an
organisation.
-

Vision statement
Mission Statement
Quality Policy

• An essential idea behind strategic quality planning is that the product is
customer value rather than a physical product or service.
• This feat cannot be achieved unless an organisation creates a culture of quality.
•

No strategy and plan can be worthwhile unless it is carefully implemented.


57


Vision Statement:
• The vision statement
– is a short declaration what an organisation aspires to be tomorrow.
– describes how the future will look if the organisation achieves its mission.
• Successful visions are timeless, inspirational, and become deeply shared within
the organisation.


58

Mission Statement:
A mission statement
• concerns what an organization is all about.
• answers the questions such as:
– who we are,
– who are our customers,
– what do we do and
– how do we do it.
• This statement is usually one paragraph or less in length, easy to understand, and
describes the function of the organization.
• It provides clear statement of purpose for employees, customers, and suppliers.


59

Quality Policy Statement:
The quality policy is
• a guide for everyone in the organization as to how they should provide products
and services to the customers.
• written by the CEO with feedback from the workforce
• A quality policy is a requirement of ISO 9000.


60

How an organization can do strategic quality planning?
•

The process starts with the principles that quality and customer satisfaction are
the centre of an organization’s future.

•

It brings together all the key stakeholders.

•

The strategic planning can be performed by any organization.

•

It can be highly effective, allowing the organizations to do the right thing at the
right time, every time.

•

There are seven steps to strategic Quality Planning:
1.
2.
3.
4.
5.
6.
7.

Discover customer needs
Customer positioning
Predict the future
Gap analysis
Closing the gap
Alignment
Implementation


61

1. Customer Needs:
– The first step is to discover the future needs of the customers.
– Who will they be?
– Will your customer base change?
– What will they want?
– How will they want?
– How will the organisation meet and exceed expectations?
2. Customer Positioning:
– Determine where organisation wants to be in relation to the customers.
– Do they want to retain, reduce, or expand the customer base.
– Product or services with poor quality performance should be targeted for
elimination.
– The organisation needs to concentrate its efforts on areas of excellence.

62

3. Predict the future:
– Predict the future conditions that will affect their product or service.
– Demographics, economics forecasts, and technical assessments or
projections are tools that help predict the future.
4. Gap Analysis :
– Identify the gaps between the current state and the future state of the
organization.
– An analysis of the core values and concepts is an excellent technique for
pinpointing gaps.
5. Closing the Gap:
– The plan can now be developed to close the gap by establishing goals and
responsibilities.
– All stakeholders should be included in the development of the plan.

63

6. Alignment:
• As the plan is developed, it must be aligned with
– the mission,
– vision, and
– core values and concepts.
• Without this alignment, the plan will have little chance of success.
7. Implementation:
• This last step is frequently the most difficult. Resources must be allocated to
– collecting data,
– designing changes, and
– overcoming resistance to change.
• Also part of this step is the monitoring activity to ensure that progress is being
made.
• The planning group should meet at a required frequency to assess progress and
take any corrective action.

64

Lecture objective
•

Need for Quality

•


•

What is TQM

•


•

Leadership

•


•


•


•



65

Supplier Partnership
Definition:
• In quality control, extended relationship between buyers and sellers based on
confidence, credibility, and mutual benefit.
• The buyer, on its part, provides long-term contracts and assurance of only a
small number of competing suppliers.
• In reciprocation, the seller implements customer's suggestions and commits to
continuous improvement in quality of product and delivery.
Vendor

Supplier

Partner

Only see their area

Work together with others
across
Accept innovation from them

Help, own the issues

Clinical Focus Operation
excellence

Strategy focus &
Alignment

Information

Knowledge

Some innovation, if we
ask
Transaction focus
Data

Information

Quarterly Meetings

Knowledge

Annual Supplier Summit


Mutually develop
innovation

Action

Multi-year Alliances
66

Supplier Partnership
An efficient Supply Chain Management, built on strong partnerships will create high
level of people and customer satisfaction.
Ensuring the partnership processes for an organisation is use of QMS Audits,
reviews and action plans.
Partnership are planned and managed, must be in line with overall policies and
strategies.
It should support the operation of the processes.
Speed breakers
• Inter departments stand alone
• Performance guarantees, contacts, processes not in place.
• Poorly defined expectations or strategies
• Skills, time and resources allocation
• Number of vendors
• Ownership, accountability, roles not well defined
• Data quality and aggregation


67

Lecture objective
•

Need for Quality

•


•

What is TQM

•


•

Leadership

•


•


•


•



68

•
•
•
•

Supplier Evaluation & Approval Process
New Part Development Process
Quality Sustenance
Supplier Communication, Support & Rewards


69

•

New supplier evaluation & approval
 Evaluation of Supplier Quality Systems
• New part family approval with existing supplier
 Pre-PPAP Audit
• Supplier Quality System Evaluation will include
– Quality system equivalent to
 ISO 9001
 TS 16949
– Environmental Management System
– Process control
– Management & general aspects
•

Approval criteria - example
– Minimum score of 70% is required
– Supplier should have minimum ISO 9001 certification


70

New Supplier Evaluation Process
Identify the supplier
Collect Supplier datasheet
Evaluate the Datasheet
Study the Feasibility

Audit their Quality System

Decide the
supplier

Discuss Commercial

Not OK

OK

Analyse the Audit gaps and identify actions
Close the action points
Purchase Responsibility

Quality Assurance Responsibility
71

General weak areas at supplier end – New supplier development
Weak area

Action proposed

Traceability

• Route card introduction
• Bar coding
• Computerized batch production
• 2 Bin system or Pull system in stores
• ‘Use me first’ tagging

First In First Out (FIFO)
Online SPC / Cpk trend
monitoring
Process FMEA periodical review

• Introduction of X – Bar & R – Chart
• Monthly monitoring of Cpk using Trend chart
• Fixing of frequency for review of control plan
and PFMEA based on rejections and
changes

Monitoring of Internal rejections

•

Introduction of trend graphs of Internal
rejection on shop floor
• Take actions on Top contributors


72

New part development through existing supplier
•

Review the manufacturing feasibility through Cross Functional Team

•

Approve the Initial Sample for :
 Dimension
 Material
 Protective finish
 Durability

•

Production Part Approval Process -PPAP / Parts Submission Warrant - PSW
sign off with on site Production Trial Run covering both process capability for
Significant Character /Critical Character.

•

Quality plan sign off

•

Safe launch for first 3 months from Start Of Production


73

New part development through existing supplier
Approval through ESQS / Pre PPAP

Manufacturing Feasibility/ Timing plan review
Sample submission
Sample
Inspection

Rejected
Product Correction

Approved
Production trial run @ Supplier end
Pending

Quality plan Documentation and agreement
PSW
Approval

Conditional Approval
Identifying action points

`Review action
points

Completed
Straight approval

Upload in database


74

General weak areas at supplier end – New Product Development
Weak area

Action proposed

First time right

• Manufacturing Feasibility study
• TGW data
• Insisting suppliers on facilitating required
equipment
• Schedule tool maintenance
• Identification of tool cleaning frequency
• Regular visit and periodical audit during safe
launch

Non -availability of Measurement
Equipment
Tool life monitoring
• Non adherence to agreed
process during bulk
production
• Safe launch inspection plan


75

Quality Sustenance
• Receiving Quality Inspection standards
• Supplier Corrective Action Request (SCAR) for quality issues
• Process and Product audit
• Supplier Up-gradation
• Supplier Training
• Supplier change request


76

Partnering
• Guidelines for raw material sources
• Designation of special process suppliers and surface protection
suppliers
• Sub supplier Identification/development
• Expertise support for pressing, machining, heat treatment, surface
coating and gauge design
• Development of Special process sources
• Expertise support by specialists for commodities like
– Casting
– Forging
– Plastics & Rubber
• Providing “Parts specific training” to Supplier

77

Lecture objective
•

Need for Quality

•


•

What is TQM

•


•

Leadership

•


•


•


•



78

Changes in social and economic environment
1947-82

India becomes independent, Regulated economy, Slow rate of
economic growth, Very low competition

1983-94

Initial phase of deregulation of economy, Slow growth rate, Imported
kits, Emerging domestic competition

1995-2000

Transition to open economy, Adequate growth rate of economy,
Growing domestic competition, Select international competition

2001-07

Deregulation of economy, High growth of economy, Open competition

2008-

Self-regulated economy, Total integration with global market
(Development of technology for new products), Steady growth
economy


79

Development in quality
1947-82

QC in inspection stage (Identification of defectives)

1983-94
19952000

Quality awareness growing, Attempted use of QC circles
QC in manufacturing stage(prevention of detectives)

2001-07

QC in design stage (making new products to satisfy new customer
requirement)

2008-

QC in research stage
Quality control (QC) tools

1947-82
1983-94
19952000
2001-07
2008-

Inspection
7 tools of QC
Various statistical methods, Design of experiments, Failure mode
effect analysis and fault tree analysis
Multi variant analysis, Weibull probability paper, 7 management tools
Subsystem in managing research programme using a combination of
Q table, process design, and process control


80

Quality assurance (QA)systems
1947-82

Regulation of inspection, Regulation of product audit

1983-94

QA systems, Compliance with ISO9000 quality system requirements

1995-2000
2001-07
2008-

Regulation of process control, QC process chart, control chart, and
check sheet, Quality tables deploying required qualities
Quality tables transforming required qualities to design qualities
Regulation of design review
Change of concepts in policy management

1947-82
1983-94

To attach importance to measures or means in addition to target
To attach importance to coordination to management of all the divisions
1995-2000
in addition to that of each division
2001-07

To attach importance to midterm and long-term policies in addition to
those specified annually

2008-

Transition to strategic management of business by the participant of all
members and all divisions


81

TQM practices in Indian Industries …..
•

•

Finally, it is true that the effort on quality improvement will intensify
– only when It becomes an issue for survival and sustainability and
– that is dependent upon the intensity of fair competition in the market place.
In this context,
– it is high time that the Indian companies follow business excellence model of
survival and growth to face the threat of competition effectively.


82

Reasons to Begin
For Management:
– It provides problem- solving tool
– Drives away negative attitudes
– They become more aware of individual’s work environment.
– Employees motivated due to participation
– Increases efficiency & productivity
–
–
–
–
–
–
–

Reduces turnover rate, sluggishness, cost, errors, wastage, rework……
Improved communication
Develops management skills
Overall company awareness and unity
Builds loyalty
Reveals training requirements
Reduced PPM


83

Reasons to Begin
For Employees
– Opportunity for personal development & growth
– Increases innovation
– They use their knowledge and skill for decision making
– Encourages decision making at the most appropriate level and time
– Increases motivation and new ideas acceptance
– Increases job satisfaction
– Talents are recognised
– Develops mutual respect
– Promotes team works


84

Steps in implementing TQM
Obtain CEO commitment
Educate upper-level management
Create Steering Committee
Release Vision, Mission & Quality Statements
Prepare Flow Diagram for company process
Focus on customer survey
Consider employee as your internal customer

Know the benefits of TQM
Use the tools of TQM
Implement Process Improvement
Establish Quality Improvement
Provide Quality Training
85

Some misconceptions in TQM
Some common misconceptions regarding the implementation continuous
improvements process.
– Every site is different
– Errors and delays are different
– It is a typical jobsite problem
– It costs you more.

It is time to get started on continuous improvements
Your competitor may have started already


86

To be a successful TQM company, ask your customers the following questions
How well we deliver what we promise ?
How often we do things right the first time ?
How often we do things right on time ?
How quickly we respond to your request ?
How accessible are we when you need ?
How helpful and polite we are ?
How well we speak your language ?
How do we listen to you ?
How hard we work to satisfy your needs ?
What is your confidence on our product / service ?


87

PPM Status - An example – How TQM benefitted the organisation

PPM
250
200
150
100
50
0
200102
Line
PPM

02-03

03-04

04-05

05-06

06-07

07-08

08-09

211

112

71

89

48

47

49

47


09-10

30

88

We have seen the benefits of TQM
We discussed TQM in our organisations, Institutions and so on.
How many of us thought that there is a TQM in our living too?
Do we have a quality living?


89

Let us incorporate Quality
in our life,
in our attitude
apart from implementing TQM in
product, service and so on..
THANK YOU &
WISH YOU ALL THE BEST
HRS

90

TQM

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