UNIT I INTRODUCTION 9 Introduction - Need for quality - Evolution of quality - Definition of quality - Dimensions of manufacturing and service quality

- Basic concepts of TQM - Definition of TQM TQM Framework - Contributions of Deming, Juran and Crosby Barriers to TQM.

Introduction The definition of quality depends on the role of the people defining it. Most consumers have a difficult time defining quality, but they know it when they see it. For example, although you probably have an opinion as to which manufacturer of athletic shoes provides the highest quality, it would probably be difficult for you to define your quality standard in precise terms. Also, your friends may have different opinions regarding which athletic shoes are of highest quality. The difficulty in defining quality exists regardless of product, and this is true for both manufacturing and service organizations. Think about how difficult it may be to define quality for products such as airline services, child day-care facilities, college classes, or even textbooks.

Today, there is no single universal definition of quality. Some people view quality as
performance to standards.Others view it as meeting the customers needs or satisfying

the customer. Lets look at some of the more common definitions of quality.

Need for Quality Management :

By definition of ISO (Int'l Org. for Standardization) - TQM is a mgmt approach for an org.

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which is centered on quality and is based on the participation of all members to aim at long-term success thru customer satisfaction (main) and also to its members and the society in whole.

TQM in Large-scale industries:

- Reduction in wastage: TQM ensures things are done rite the 1st time, so this reduces wastage and defects. - Quality Assurance: TQM guarantees that all the products and even operations in the org. are of a certain quality standard. This promotes trust to the consumers and also maintains a healthy environment for employees. - Customer-based: TQM focuses on the needs of the customers and can be used effectively, o make changes to the existing product design to meet such needs. Failure Analysis: TQM is a statistical tool also. Hence provides a learned person with the faults and failures in various process. This in turn can be used to make corrective progress. Definition of quality Today, there is no single universal definition of quality. Some people view quality as
performance to standards.Others view it as meeting the customers needs or satisfying

the customer. Lets look at some of the more common definitions of quality. Conformance to specifications measures how well the product or servic meets the targets and tolerances determined by its designers. For example, the dimensions of a machine part may be specified by its design engineers as 3.05 inches. This would mean that the target dimension is 3 inches but the dimensions can vary between 2.95 and 3.05 inches. Similarly, the wait for hotel room service may be specified as 20 minutes, but there may be an acceptable delay of an additional 10 minutes. Also, consider the amount of light delivered by a 60 watt light bulb. If the bulb delivers 50 watts it does not conform to specifications. As these examples illustrate, conformance to specification is directly measurable, though it may not be directly related to the consumers idea of quality.
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 Fitness for use focuses on how well the product performs its intended function or use. For example, a Mercedes Benz and a Jeep Cherokee both meet a fitness for use definition if one considers transportation as the intended function. However, if the definition becomes more specific and assumes that the intended use is for transportation on mountain roads and carrying fishing gear, the Jeep Cherokee has a greater fitness for use. You can also see that fitness for use is a user-based definition in that it is intended to meet the needs of a specific user group. Value for price paid is a definition of quality that consumers often use for product or service usefulness. This is the only definition that combines economics with consumer criteria; it assumes that the definition of quality is price sensitive. For example, suppose that you wish to sign up for a personal finance seminar and discover that the same class is being taught at two different colleges at significantly different tuition rates. If you take the less expensive seminar, you will feel that you have received greater value for the price. Support services provided are often 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 organizational environment associated with it. For example, the quality of a university is judged not only by the quality of staff and course offerings, but also by the efficiency and accuracy of processing paperwork Psychological criteria 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 and Mercedes-Benz automobiles are examples.

Dimensions of Manufacturing and Service quality : Defining quality in manufacturing organizations is often different from that of services. Manufacturing organizations produce a tangible product that can be seen, touched, and directly measured. Examples include cars, CD players, clothes, computers, and food items. Therefore, quality definitions in manufacturing usually focus on tangible product features. The most
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common quality definition in manufacturing is conformance, which is the degree to which a product characteristic meets preset standards. Other common definitions of quality in manufacturing include performancesuch as acceleration of a vehicle;
reliabilitythat the product will function as expected without failure; featuresthe extras that are included beyond the basic characteristics;

durabilityexpected operational life of the product; and serviceabilityhow readily a product can be repaired. 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.

In contrast to manufacturing, service organizations produce a product that is intangible. Usually, the complete product cannot be seen or touched. Rather, it is experienced. Examples include delivery of health care, experience of staying at a vacation resort, 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. Other definitions ofquality in services include timethe amount of time a customer has to wait for the service; and consistencythe 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 organizations are shown in below Table 5-1.

MANUFACTURING ORGANISATION Conformance to specifications Performance Reliability Features -

SERVICE ORGANIZATION Tangible factors

Consistency Responsiveness to customer needs Courtesy/friendliness

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Durability Serviceability Evolution of quality :

Timeliness/promptness Atmosphere

Evolution of quality provides high degree of assurance that manufacturer will consistently produce medical devices that:Are safe Perform as intended Comply with customer requirements Comply with regulatory requirements Have the appropriate degree of quality

BASIC CONCEPTS OF TOTAL QUALITY MANAGEMENT :

The concept of has existed for many years, though its meaning has changed and evolved over time. In the early twentieth century, quality management meant inspecting products to ensure that they met specifications. In the 1940s, during World War II, quality became more statistical in nature. Statistical sampling techniques were used to evaluate quality, and quality control charts were used to monitor the production process. In the 1960s, with the help of so-called

quality gurus, the concept took on a broader meaning. Quality began to be viewed as something that encompassed the entire organization, not only the production process. Since all functions were responsible for product quality and all shared the costs of poor quality, quality was seen as a concept that affected the entire organization. The meaning of quality for businesses changed dramatically in the late 1970s. Before then quality was still viewed as something that needed to be inspected and corrected. However, in the 1970s and 1980s many U.S. industries lost market share to foreign competition. In the auto industry, manufacturers such as Toyota and Honda became major players. In the consumer goods market, companies such as Toshiba and Sony led the way. These foreign competitors were producing lower-priced products with considerably higher quality. To survive, companies had to make major changes in their quality programs. Many hired consultants and instituted quality training programs for their employees. A new concept of quality was emerging. One result is that quality began to have a strategic
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meaning. Today, successful companies understand that quality provides a competitive advantage. They put the customer first and define quality as meeting or exceeding customer expectations. Since the 1970s, competition based on quality has grown in importance and has generated tremendous interest, concern, and enthusiasm. Companies in every line of business are focusing on improving quality in order to be more competitive. In many industries quality excellence has become a standard for doing business. Companies that do not meet this standard simply will not survive. As you will see later in the chapter, the importance of quality is demonstrated by national quality awards and quality certifications that are coveted by businesses.

The term used for todays new concept of quality is total quality management or TQM. Figure 5-3 presents a timeline of the old and new concepts of quality. You can see that the old concept is reactive, designed to correct quality problems after they occur. The new concept is proactive, designed to build quality into the product and process design. Next, we look at the individuals who have shaped our understanding of quality.

CONTRIBUTIONS BY QUALITY GURUS

To fully understand the TQM movement, we need to look at the philosophies of notable individuals who have shaped the evolution of TQM. Their philosophies and teachings have contributed to our knowledge and understanding of quality today.

Walter A. Shewhart Walter A. Shewhart was a statistician at Bell Labs during the 1920s and 1930s. Shewhart studied randomness and recognized that variability existed in all manufacturing processes. He developed quality control charts that are used to identify whether the variability in the process is random or due to an assignable cause, such as poor workers or miscalibrated machinery. He stressed that eliminating variability improves quality. His work created the foundation for todays statistical process control, and he is often referred to as the grandfather

of quality control.

W. Edwards Deming is often referred to as the father of quality control. He was a statistics professor at New York University in the 1940s. After World War II he assisted many Japanese Powered by TSS (Techno Script Solution) www.technoscriptz.com & www.notesengine.com Page 6

companies in improving quality. The Japanese regarded him so highly that in 1951 they established the Deming Prize, an annual award given to firms that demonstrate outstanding quality. It was almost 30 years later that American businesses began adopting Demings philosophy. A number of elements of Demings philosophy depart from traditional notions of quality. The first is the role management should play in a companys quality

Dr. Deming's famous 14 Points, originally presented in out of the Crisis, serve as management guidelines. The points cultivate a fertile soil in which a more efficient workplace, higher profits, and increased productivity may grow. Create and communicate to all employees a statement of the aims and purposes of the company. Adapt to the new philosophy of the day; industries and economics are always changing. Build quality into a product throughout production. End the practice of awarding business on the basis of price tag alone; instead, try a longterm relationship based on established loyalty and trust. Work to constantly improve quality and productivity. Institute on-the-job training. Teach and institute leadership to improve all job functions. Drive out fear; create trust. Strive to reduce intradepartmental conflicts. Eliminate exhortations for the work force; instead, focus on the system and morale. (a) Eliminate work standard quotas for production. Substitute leadership methods for improvement. (b) Eliminate MBO. Avoid numerical goals. Alternatively, learn the capabilities of processes, and how to improve them. Remove barriers that rob people of pride of workmanship Educate with self-improvement programs. Include everyone in the company to accomplish the transformation.

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Comments on some of Dr. Deming's points: The first of the 14 Points charges management with establishing continual improvement through the redefinition of the company's purposes. Quite simply, the company must survive, compete well, and constantly replenish its resources for growth and improvement through innovation and research.

In the fifth point, Dr. Deming states that only a commitment to a process of continual improvement truly rewards. A company cannot expect to ignite and feed a quality revolution from which it will prosper for all time. Instead, it must adopt an evolutionary philosophy; such a philosophy prevents stagnation and arms the company for the uncertain future. Part of the evolutionary mentality is to abandon practices that, despite their obvious short term benefits, ultimately detract from the company's effectiveness.

Point number four specifically warns against this scenario: the purchasing department of a company consistently patronizes those vendors who offer the lowest prices. As a result, the company often purchases low quality equipment. Dr. Deming urges companies to establish loyal ties with suppliers of quality equipment.

Point five condemns mass inspection procedures as inefficient; a product should be monitored by the workers, throughout the assembly process, to meet a series of quality standards. In the long term, the use of better equipment and a more intense worker-oriented method of inspection will markedly improve productivity and lower costs. In order to accomplish these goals, a company must develop a consistent, active plan that involves its entire labor force in the drive toward total quality.

Cooperation- Dr. Deming based his new business philosophy on an ideal of cooperation. In order to fulfill its own potential, a company must harness the power of every worker in its employment; for that reason, the third point bars shoddy workmanship, poor service, and negative attitudes from the company.
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Theory of Profound Knowledge -- In order to promote cooperation, Deming espouses his Theory of Profound Knowledge. Profound knowledge involves expanded views and an understanding of the seemingly individual yet truly interdependent elements that compose the larger system, the company. Deming believed that every worker has nearly unlimited potential if placed in an environment that adequately supports, educates, and nurtures senses of pride and responsibility; he stated that the majority--85 percent--of a worker's effectiveness is determined by his environment and only minimally by his own skill.

A manager seeking to establish such an environment must: employ an understanding of psychology--of groups and individuals. eliminate tools such as production quotas and sloganeering which only alienate workers from their supervisors and breed divisive competition between the workers themselves. form the company into a large team divided into sub-teams all working on different aspects of the same goal; barriers between departments often give rise conflicting objectives and create unnecessary competition. spread profit to workers as teams, not individuals. eliminate fear, envy, anger, and revenge from the workplace. employ sensible methods such as rigorous on-the-job training programs. In the resulting company, workers better understand their jobs--the specific tasks and techniques as well as their higher value; thus stimulated and empowered, they perform better. The expense pays for itself.

The ideas of W. Edwards Deming may seem common or obvious now; however, they've become embedded in our culture of work. Dr. Deming's ideas (and personal example) of hard work, sincerity, decency, and personal responsibility, forever changed the world of management. "It is not enough to just do your best or work hard. You must know what to work on."- W. Edwards Deming

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Biography As the sun rose on the 20th century, a baby was born to the Deming family in a small town in Iowa. W. Edwards Deming would become a colossus of modern management thinking. He would live through most of the century, and have a tremendous impact on its second half.

The Demings moved from Iowa to Wyoming, and in 1917, Edwards entered the University of Wyoming. To fund his education, he worked as a janitor. He graduated in 1921, and went on to the University of Colorado, where he received a M.S. in physics and mathematics. This led towards a doctorate in physics from Yale University.

From physics, Dr. Deming gravitated towards statistics. The U.S. Census Bureau hired Dr. Deming in 1940, just at the time that the Bureau shifted its procedure from a complete count to a sampling method. Upon completion of the 1940 census, Deming began to introduce Statistical Quality Control into industrial operations. In 1941, he and two other experts began teaching Statistical Quality Control to inspectors and engineers.

Dr. Deming started his own private practice in 1946, after his departure from the Census Bureau. For more than forty years his firm served its clientele--manufacturers, telephone companies, railways, trucking companies, census takers, hospitals, governments, and research organizations. As a professor emeritus, Dr. Deming conducted classes on sampling and quality control at New York University. For over ten years, his four-day seminars reached 10, 000 people per year.

The teachings of Dr. Deming affected a quality revolution of gargantuan significance on American manufacturers and consumers. Through his ideas, product quality improved and, thus,
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popular satisfaction. His influential work in Japan--instructing top executives and engineers in quality management--was a driving force behind that nation's economic rise. Dr. Deming contributed directly to Japan's phenomenal export-led growth and its current technological leadership in automobiles, shipbuilding and electronics. The Union of Japanese Science and Engineering (JUSE) saluted its teacher with the institution of the annual Deming Prize for significant achievement in product quality and dependability. In 1960, the Emperor of Japan bestowed on Dr. Deming the Second Order Medal of the Sacred Treasure.

Stateside, the American Society for Quality Control awarded him the Shewhart Medal in 1956. In 1983, Dr. Deming received the Samuel S. Wilks Award from the American Statistical Association and election to the National Academy of Engineering. President Reagan honored him with the National Medal of Technology in 1987, and, in 1988, the National Academy of Sciences lauded him with the Distinguished Career in Science award. He was inducted into the Automotive Hall of Fame in 1991.

Dr. Deming was a member of the International Statistical Institute. He was elected in 1986 to the Science and Technology Hall of Fame in Dayton. From the University of Wyoming, Rivier College, the University of Maryland, Ohio State University, Clarkson College of Technology, Miami University, George Washington University, the University of Colorado, Fordham University, the University of Alabama, Oregon State University, the American University, the University of South Carolina, Yale University, Harvard University, Cleary College, and Shenandoah University, Dr. Deming received the degrees L.L.D. and Sc.D. honorius causa. From Yale University, he won the Wilbur Lucius Cross Medal, and the Madeleine of Jesus from Rivier College.

Dr. Deming authored several books and 171 papers. His books, Out of the Crisis (MIT/CAES, 1986) and The New Economics (MIT/CAES, 1994) have been translated into several languages. Myriad books, films, and videotapes profile his life, his philosophy, and the successful application of his worldwide teachings.

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BARRIERS TO QUALITY MANAGEMENT : To fully understand the TQM movement, we need to look at the philosophies of notable individuals who have shaped the evolution of TQM. Their philosophies and teachings have contributed to our knowledge and understanding of quality today.

One idea may be to look at new industry philosophies around continuous improvement. The adoption of 'way of working' philosophies and 'lean' philosophies and how they tie in with TQM. buzzwords such as 'empowerment', 'training' and 'knowledge-sharing' may be useful in researching seminars on such topics. look at how attitudes of employees are improved with 'growth involvement' An interesting was the 'Fish Philosophy'. I appreciate that this does not directly answer your question, but may help you to find research alternatives.

Definition of TQM:

Total Quality Management is a management approach that tries to achieve and sustain long term organizational success by encouraging employee feedback and participation, satisfying customer needs and expectations, respecting societal values and beliefs, and obeying governmental statutes and regulations.

Five Pillars of TQM are,

Product Process System People Leadership

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Total Quality Management is an effective system for integrating the quality development, quality maintenance and quality improvement efforts of various groups in an organization continuously, so as to enable marketing, engineering, production and service at the most economic levels which allow for full customer satisfaction.

The TQM is applied to many stages of Industrial Cycle which are listed below:

1. Marketing 2. Engineering 3. Purchasing 4. Manufacturing 5. Mechanical 6. Shipping 7. Installation and product service. <Strong>Fundamental factors affecting Quality: (9 Ms)

1. Market 2. Money 3. Management 4. Men 5. Motivation 6. Materials 7. Machines and Mechanization 8. Modern Information Methods 9. Mounting Product Requirements

Benefits of TQM:

Customer satisfaction oriented benefits:

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1. Improvement in product quality 2. Improvement in product design 3. Improvement in production flow 4. Improvement in employee morale and quality consciousness 5. Improvement in product service 6. Improvement in market place acceptance

Economic improvement oriented benefits:

1. Reduction in operating costs 2. Reduction in operating losses 3. Reduction in field service costs 4. Reduction in liability exposure

Historical Review:

The history of quality control is undoubtedly as old as industry itself.

In 1924, W.A. Shewhart of Bell Telephone Laboratories developed a statistical chart of the control of product variables. This chart is considered to be the beginning of statistical quality control. Later in the same decade, H.F.Dodge and H.G.Romig, both of Bell Telephone Laboratories, developed the area of acceptance sampling as a substitute of 100% inspection.

In 1946, the American society for Quality Control was formed. Recently the name was changed
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into Americn Society for Quality (ASQ).

In 1950s W.Edwards Deming emphasized about the managements responsibility to achieve quality. In 1960s the first quality control circles were formed for the purpose of quality improvement. In the late 1980s the automotive industry began to emphasize statistical process control. After 1990s the ISO became the model for a quality management system world wide.

Quality Movement in India:

Before Independence in India, quality has been a tradition but not in a consolidated form.

Walter Shewhart, the father of Statistical Quality Control, visited India for a short period of three months during 1947-48 and initiated the SQC movements in Indian companies.

The quality movement was consolidated in the 1980s in the Indian Industries to bring out synergy of resources by the pioneering efforts of Confederation of Indian Industries (CII)

Dr.W.Edward Deming, the father of Quality Control , who taught Japanese about applying PDCA cycle (Deming Cycle) came to India in early 1950s.

The TQM movement in USA in 1980s triggered quality movement in India in the year 1982 and Quality Circle was born.

Prof. Ishikawa , the founder of quality movement in Japan was invited by CII to come to India to address Indian Industry in 1986.

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CII organized a first major seminar with Joseph Juran in 1987.

CII provided a focus and an impetus to the quality movement by forming a TQM division in 1987. By then the focus was shifted from quality circles to quality management.

CII set up the TQM division with the help of 21 companies who agreed to support the journey of TQM in India. The chief executives of these companies formed a National Committee on Quality.

CII also launched the first newsletter on Quality.

The year 1987 brought the ISO 9000 standards into reality and visible strategies emerged.

CII organized training programmes in ISO 9000 quality systems for international standards and certification in the year 1989.

From the year 1991, Indian companies started to get the ISO 9000 certifications.

The concept of TQM spread over the service sector and technology apart from engineering applications.

CII organized and launch of National Quality Campaign in 1992, led by the Prime Minister of India and the Quality Summit organized by CII has now become an annual feature across the country.

The future thrust on quality movement in India would be based on:

Application Research (Industry and Academics) Experience Sharing ISO certifications Environmental protection, safety and consumer protection for quality enhancement.
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UNIT II TQM PRINCIPLES 9 Leadership Strategic quality planning, Quality statements - Customer focus Customer orientation, Customer satisfaction, Customer complaints, Customer retention Employee involvement Motivation, Empowerment, Team and Teamwork, Recognition and Reward, Performance appraisal - Continuous process improvement PDSA cycle, 5s, Kaizen - Supplier partnership Partnering, Supplier selection, Supplier Rating. 40 Strategic Planning:

There are seven basic steps to strategic quality planning.

a) Customer needs b) Customer positioning c) Predict the future

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d) Gap analysis e) Closing the gap f) Alignment g) Implementation

Strategic planning can be performed by any organization. It can be highly effective, allowing organizations to do the right thing at the right time, every time.

Quality Planning:

Quality planning is the pre-determined activities in order to achieve conformation to the requirements. Many organizations are finding that strategic quality plans and business plans are inseparable. The quality planning procedure given by Joseph.A.Juran has the following steps:

Identify the customers Determine their needs Translate those needs into our language. Develop a product that can respond to those needs Optimize the product features to meet our and customer needs . 1. it is far from simple. 2. it is not an objective statistic, but more of feeling and attitude. 3. therefore like people's opinion Quality Costs:

All organizations make use of the concept of identifying the costs needed to carry out the various
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functions product development, marketing, personnel, production etc.,

Until the 1950s this cost concept had not been extended to quality function, except for the

departmental activities of inspection and testing.

During the 1950s the concept of Quality Cost emerged. Different people assigned different

meanings to the term. Some people equated quality cost with the cost of attaining quality; some people equated the term with the extra incurred due to poor quality. But, the widely accepted thing is Quality cost is the extra cost incurred due to poor or bad quality of the product or

service.

Categories of Quality Cost:

Many companies summarize quality costs into four broad categories. They are,

a) Internal failure costs - The cost associated with defects that are found prior to transfer of the product to the customer.

b) External failure costs - The cost associated with defects that are found after product is shipped to the customer.

c) Appraisal costs - The cost incurred in determining the degree of conformance to quality requirement.

d) Prevention costs - The cost incurred in keeping failure and appraisal costs to a minimum.

Sometimes we can also include the hidden costs i.e., implicit costs.

Traditional Quality cost model

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Emerging Quality Cost Model

Higher quality doesn't mean higher costs

The companies estimate quality costs for the following reasons :

a) To quantifying the size of the quality problem in the language of money improves communication between middle managers and upper managers.

b) To identify major opportunities for cost reduction.

c) To identify the opportunities for reducing customer dissatisfaction and associated threats to product salability.

Analysis Techniques for Quality Costs: i. Trend Analysis ii. Pareto Analysis

CUSTOMER SATISFACTION

Customers are important asset to the organization, satisfied customers will buy more, and buy more frequently, and pay their bill promptly. In a manufacturing and service organization, customer satisfaction is considered as a measure of quality.TQM implies an organizational drive with meeting or exceeding customer
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needs.Understanding the customer's needs and expectations is essential to winning new business. To attain this level, the organization should examine their quality system to respond to their ever changing customer's needs. A simple definition of customer satisfaction is illustrated below Teboul model

Characteristics of customer satisfactionand feeling, it is subjective by nature. 4. because of this subjective nature, it is difficult to measure. 5. the measurement of customer satisfaction is not precise. 6. the customer satisfaction should not be viewed in vacuum, i.e., it should be compared with the level of satisfaction they have with competitor's product are service. Types of customers. 1. Internal customers - each of them receives a product or service and in exchange, providers a product or service. 2. external customers - one who uses the product or service, the one who purchase the product, or the who influences the sale of theproduct. One basic concept of TQM is focus on customers, both internal and external.

CUSTOMER RETENTION Customer retention represents the activities that produces the necessary customer satisfaction which in turn creates the customer loyalty. customer retention moves customer satisfaction to the next level by determining what is truly important to the customers and making sure that the customer satisfaction system focuses valuble resources on things that are important to the customer. Customer rettention is the connection between customer satisfaction and the bottom line. World-class companiesknoe that continuous improvement and customer satisfaction should go hand-in-hand. Improved service to the customer is a costlier affair, so an organization must determine its return on the service invesment. For this the important service elements that significantly improve revenues and market share shuld be determined.
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One survey indicates, it requires five times of effort to win a new customer than retaining a present customer. In this context customer retention is important for organizational sucess.

CUSTOMER COMPLAINTS Unlike the customer's feedback the customer complaints are reactive, and they are important in gaining data on customer perceptions.
A disatisfied customer can easily become a lost customer because of their frustrations.This customer dissatisfaction become a measure for organizational process improvement measures. Every single complaint should be accepted, analyzed, and acted upon to again win over customer's confidence.Since more than 50% of the dissatisfied customers will buy again if they are complaint has been heard and resolved. By adopting a positive approach the complaints can be seen as an oppurtunity to obtain information and provide a positve service to the customer.

Handling the customer complaints 1.investigaste customer's experiences by actively receiving the customer feedback and then acting promptly. 2. develop procedures for complaint resolution that include empowering front-line employee. 3. analyze complaints, try to put them in a category for speedy response. 4. Work to identify process and materuial variations and then eliminaste the root cause.'more inspection' is not a corrective action. 5. Afetr receiving the response, a senior manager should contact the customer and strive top resolve the concern 6. Establish customer satsfaction measures and constantly monitor them 7. Communicate complaint information, as well as the results of all inquiries and solutions, to all people in the organization. 8. provide a monthly complaint report to the quality council for their evalution and if needed, the assignment of process im[provement teams. 9. identify customer's expectations in advance rather than afterward through complaint analysis.

Three key elements to a partnering relationship

i. Long-term commitment
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ii. Trust iii. Shared vision

Three types of sourcing

a) Sole sourcing b) Multiple sourcing c) Single sourcing

Ten conditions for the selection and evaluation of suppliers

I. The supplier understands and appreciates the management philosophy of the organization. II. The supplier has a stable management system. III. The supplier maintains high technical standards and has the capability of dealing with future technological innovations. IV. The supplier can supply precisely those raw materials and parts required by the purchaser, and those supplied meet the quality specifications. V. The supplier has the capability to produce the amount of production needed or can attain that capability. VI. There is no danger of the supplier breaching corporate secrets. VII. The price is right and the delivery dates can be met. In addition, the supplier is easily accessible in terms of transportation and communication. VIII. The supplier is sincere in implementing the contract provisions. IX. The supplier has an effective quality system and improvement program such as ISO/QS 9000. X. The supplier has a track record of customer satisfaction and organization credibility.

Definition of Quality:

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The dictionary has many definitions of quality. A short definition that has achieved acceptance is: Quality is Customer Satisfaction. Fitness for use is an alternative short definition. Here,

customer means anyone who is impacted by the product or process.

Quality is a predictable degree of uniformity and dependability, at low cost and suited to the market.

Quality is a relative term, generally used with reference to the end-use of a product. Quality should be aimed at the needs of the consumer, present and future.
According to ISO 8402, quality is the totality of features and characteristics of a product or

service that bear on its ability to satisfy stated or implied needs.

Broadly quality is:

a) Fitness for use b) Grade

c) Degree of preference d) Degree of excellence

e) Conformity to requirements

Dimensions of Quality :

The following are the components reveal the dimensions of quality.

Manufacturing Industries Service Industries Product Features Accuracy Performance Timeliness Reliability Completeness Durability Friendliness and courtesy Ease of use Anticipating customer needs
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Serviceability Knowledge of server Esthetics Availability Reputation Reputation

EMPLOYEE INVOLVEMENT Japanese management emphasizes the need to consider employee as a valuble resources rather than treating them as a mere tools for production. Employee involvement is one approach to improve quality and productivity. It is not an replacement for management nor is it the final word in quality improvement, it aims at better meeting of organizational goals at all levels. Motivation

Knowledge fo motivation helps us to understand the utilization fo employee involvement to achieve process improvement. THEORIES OF MOTIVATION

He explained the motivation interms of a heirarchy of needs and that there were five levels. These are survival, security, social, esteem, and self-actualization.

It is important to note that as employees move up the heirarchy, they will immedietly revert back to the previous level if they feel threatned. HERZBERG'S TWO FACTOR THEORY Herzberg extends the Maslow's theory by using empirical research oin employee motivation.

He found that people were motivated by the motivators ( intrinsic factors) like recognition, responsibility, achievement, advancement and the work itself. In addition he found that bad feelings were associated with preventable dissatisfiers or hygiene
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factors (extrinsic factors) like low salary, minimal fringe benefits, poor working conditions, illdefined organizational policies and mediocre(ordinary) supervision.

He also explained that the presence of extrinsic factors( for example good working condition) does not produce any motivation but their absence will create dissatifaction among employees. In a same manner the absence of intrinsic factors ( for example advancement) does not produce any dissatisfaction but their presence will provide strong level of motivation.

Mcgregor's Theory X and Theory Y How to motivate work force 1. Know thyself 2. Know your employees 3. Establish a positive attitude 4. Share the goals 5. Monitor progress 6. Develop intersting work 7. Communicate 8. Celebrate sucess EMPOWERMENT

The dictionary meaning of the term empowerment is to invest people with authority.Its purpose is to tap the enourmous potential that lies within every worker. An operational definition is as follows:

Empowerment is an environment in which people have the ability, the confidence, and the commitment to take the responsibility and ownership to improve the process and initiate the necessary steps to satisfy customer requirements within well defined boundaries in order to achieve organizational values and goals.
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Empowerment is nothing unusual, people generally want to be more in charge of their own jobs and carrers. afterall, they do that sucessfully in their personal lives every day. Most people appreciate and value the trust and respopnsibility.This empowerment helps greatly in eliminating resistence to changes.

Empowerment is different from delegation or job enrichment, which means distributing or entrusting work to others.In empowerment employee is held responsible for accomplishing a whole task.i.e., employee becomes process owner, thus not only responsible but also accountable. Three conditions are necessary for empowering employees 1. Everyone must understand the need for change 2. The system needs to change to the new paradigm( model/standard) 3. The organization must enable its employees. TEAMS Teams are very effective in solving all quality and productivity problems.

Team is defined as a group of peopleworking together to achieve common objectives or goals. Teamwork is the cumulative actions of the team during which each member of the team subordinates his interests and opinions to fulfill the objectives or goals of the group. Many heads are better than one, especially in meeting ever-changing customer needs. Each member of the team have special ability that can be used for the problem.Many processes are so complex that one person cannot able solve completely. Based on the synergic effect, whole is greater than sum of its parts.Team work is better than sum of its member contribution. Team builds a rapport with each other that allows everyone to do a better job. Teams provide the vehicle for improved communication. Types of teams
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 Process improvement teams cross-functional teams natural work teams self-directed/ self managed teams

Characteristics of successful teams Sponsor Team charter Team competition training ground rules clear objectives accountability well-defined decision procedures resources trust
effective problem solving open communication appropriate leadership balanced participation cohesiveness.

CONTINUOUS PROCESS IMPROVEMENT The basic ways for a continuous process improvement are Reduce resources Reduce errors Meet or exceed expectations of downstream customers Make the process safer Make the process more satisfying to the person doing it.
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Phases of a Continuous Process Improvement Cycle are a) Identify the opportunity b) Analyze the process c) Develop the optimal solutions d) Implement e) Study the results f) Standardize the solution g) Plan for the future JURAN TRILOGY Three components of the Juran Trilogy are i. Planning ii. Control iii. Improvement

PDSA CYCLE The steps in the PDSA cycle are The basic Plan-Do-Study-Act is an effective improvement technique. 1st. Plan carefully what is to be done 2nd. Carry out the plan 3rd. Study the results 4th. Act on the results by identifying what worked as planned and what didnt. The Demings PDSA cycle is a well-known model for continual process improvement. It teaches organizations to plan an action, do it, study to see how it conforms to the plan and act on what has been learned.

The terms are defined below. Step 1: Plan Recognize an opportunity, and plan the change. Step 2: Do Implement the change. Step 3: Study Review the implementation, analyze the results and identify learnings. Step 4: Act Take action based on what you learned in the step 3. If the change was successful, incorporate the learnings from the test into wider changes. If not, go through the cycle again. The PDSA cycle for sustainable development of TQM shown in Fig. 1 is made up of four steps. Step 1: Plan for TQM Quality having become one of the twentieth centurys most important management ideas, has exorcised driven out the traditional business as well
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