Professional Documents
Culture Documents
INTRODUCTION
Total Quality Management (TQM) is customer oriented management philosophy and strategy.
The word Total implies that all members of the organization make consistent efforts to achieve
the objective of customer delight through systematic efforts for improvement of the organization.
TQM addresses the concepts of product quality, process control, quality assurance and quality
improvement , all of which are aimed at customer delight. Therefore, it is important to get the
right meaning, interpretation and understanding of the term quality and related terms. This will
provide a strong foundation for TQM. We will discuss various dimensions of quality in the
following paragraphs.
DEFINITION OF QUALITY
The word quality is often used indiscriminately for many different meanings. Quality can be
defined as fitness for use, customer satisfaction, doing things right the first time, or zero
defects. These definitions are acceptable because quality can refer to degrees of excellence.
Websters dictionary defines quality as an inherent characteristic, property or attribute.
The definition of quality as per the ISO 9000 standard is, The totality of features and
characteristics of a product or service, that bear on its ability to satisfy a given or implied need.
Thus, the standard definition of quality is common both to products and services. It is essentially
satisfying the customer needs, both stated and unstated (implied).
CHAIN REACTIONS
The importance of quality will be clear from the chain reaction on account of quality envisaged
in Japan in the 1950. The chain reaction' is depicted in Fig.1.1 as follows.
Improve Quality
better bb Productivity
Improved
Stay in business
DIMENSIONS OF QUALITY
Quality has many dimensions. The dimensions of quality are nothing, but the various features of
a product or service. We will discuss some of them briefly.
Product quality
1. Functionality: It refers to the core features and characteristics of a product. It may be defined
as, a set of attributes that bear on the existence of a set of functions and their specified
properties. The functions are those that satisfy stated or implied needs.
2. Reliability: Reliability is an indicator of durability of products. It is measured by mean
(average) time between failures.
3. Usability: A product should be easily usable. The customer should be able to use the product
easily without the help of experts. Usability can also be measured by the time taken for training
an operator for error-free operation of a system.
4. Maintainability: Maintainability refers to the ease with which a product can be maintained in
the original condition. Product may become defective while in use or in transit. It should be
repairable so as to retain the original quality of the product at the lowest cost at the earliest
possible time. Maintainability may be defined as, A set of attributes that bear on the effort
needed to make specified modifications.
5. Efficiency: It is the ratio of output to input. It is applicable to most products.
6. Portability: It is defined as , a set of attributes that bear on the ability of software to be
transferred from one environment to another. The environment may be organizational,
hardware or software environment. This is more important in the context of software.
Service Quality: The service quality has additional features. The quality of service depends to
an large extent on understanding the correct requirements of the customer through such
interactions. Each service has to be designed specifically for the customer. Thus, the additional
features of service quality are:
1. Quality of customer service
2. Quality of service design
3. Quality of service delivery
1. Quality of customer service: Customer service is important in every business. In a service
industry, meeting customers and finding out their implied requirements is more challenging.
Therefore, ability to satisfy customer depends on the quality of customer service.
2. Quality of service design: It is important that the service is designed as per the requirements
of the specific customer. Quality of service design in turn depends on the quality of customer
service.
3. Quality of Delivery: Quality of delivery is important in any sector, but more crucial in case of
services. Defects on delivery should be zero to satisfy the customers.
Additional attributes of quality, which are applicable to both products and services, are given
below:
1. Timeliness: It is critical for many products and services. Delay in arrival of aircrafts or
trains are instances of poor quality of the services encountered in day-to-day life. Delivery on
schedule as per requirements of the customer is a must both in the product sector as well as in
service sector.
2. Aesthetics: A product or service should not only perform well but also appear attractive.
Therefore, aesthetics is an important element of quality.
3. Regulatory requirements: It is stipulating by the local and federal governments should be
fulfilled by the product or service.
4. Requirements of society: The products should fulfill both the stated and implied
requirements imposed by society. The customer requirement should not violate society or
regulatory requirements.
5. Conformance to standards: Product or service should conform to the stated and implied
requirements of customers. Where applicable, they should conform to applicable standards such
as national standards, international standards and industry standards.
BASIC TERMS RELATED TO QUALITY TO UNDERSTAND TQM
Quality Control: It may be defined as, the operational techniques and activities that are used
to fulfill the requirements for quality. In simple terms, QC is inspection or appraisal of products
and services to ensure that the stated requirements are fulfilled. This was the only techniques
practiced during World War II. Since it was found that QC was essential but not sufficient.
Quality assurance technique were developed after the second world war.
Joseph Juran the father of quality guru gives 3steps of QC
1. Evaluate actual operating performance
2. Compare actual performance to goals.
3. Act on the difference
Quality Assurance (QA): The definition of quality assurance is all the planned and systematic
activities implemented within the quality system, and demonstrated as needed, to provide
adequate confidence that an entity will fulfill the requirements for quality.
The purpose of QA is to fulfill the quality requirements of an entity, i.e. product or service, with
adequate confidence by the supplier. This requires implementation of all the activities planned
for building quality into the product. Building quality into the products requires the following.
Quality of Design
Quality of Conformance
Quality of performance
Quality of service
Quality of design: It refers to how well the product or service has been designed to meet the
current and future requirements of customers and add value to all the stakeholders. The
stakeholders for any organization are customers, suppliers, employees owners, society etc.
Quality of design involves all activities that will result in a successful design.
Quality of conformance: This indicates the consistency in delivering the designed product.
Product quality in turn depends on the quality of all processes in the organization.
Quality of performance: It is an indicator of the performance of the product.
Quality of service: Selling a product is not the end of the business. It is the quality of associated
services rendered that adds value to the product.
Thus quality assurance, is much more involved activity than mere inspection or QC. In fact QC
is one of the activities of QA.
Quality Planning: In order to consistently meet customer requirements, the quality of 4Ms
namely, Man, Machine ,Material and Methods need to be ensured. The requirements of the 4Ms
are to be identified in the form of quality objectives. The objectives should be established for all
the function. The functions include suppliers, purchase, product design, engineering,
production, in process inspection, final inspection, after sales services etc.
It refers to the activities that establish the objectives and requirements for quality. It involves
planning for the following with regard to a product or service or project or a contract.
i. Quality objectives to be met
ii. Specific of QA/QC practices
iii. Resources needed
iv. Sequence of QA/QC activities
The QC activities include testing, inspection, examination and audit at various stages of product
or service life cycle.
Quality improvement: This process aims at attaining unprecedented levels, of performance,
which are significantly better than the past level.
STRATEGIC PLANNING: Strategic planning is important for any business. It involves
making plans for the following, in particular:
Business value
Investment in machinery and equipment
Manpower to be hired
Budget
Product diversification
Markets to be served
Strategies for improving profits, etc.
Strategic planning is carried out generally at annual intervals and is carried out using a formal
structured approach. The strategic planning is kept confidential due to obvious reasons. Usually
organizations treat strategic planning and quality planning as separate and isolated activities. The
quality improvement planning should focus on the needs of current and future customers and
support the strategic and business goals of the organization.
The strategic quality planning is the formulation of strategies to achieve TQM in the
organization.
Some strategies for TQM implementation are:
1.Training for top management-members of quality council, senior management- executives,
employees.
2.Forming improvements teams for specific problems.
3.The consultant can train the quality council members. The TQM facilitator can also undergo
the training along with the quality council members. Thereafter, the TQM facilitator should
taken the lead and conduct training for as many employees as possible on TQM principles and
how to go about TQM.
Quality Management:
According to ISO 9000 standards, Quality management comprises, All activities of the overall
management function that determine the quality policy, objectives and responsibilities and
implement them by means such as quality planning, quality control, quality assurance and
quality improvement within the quality system.
The quality system consists of the organizational structure, procedures, processes and resources
needed to implent quality management.
The company must have an objective and policy for quality of the products and services.
The organization should plan for meeting the objectives.
The plan should include QA,QC and methodology for improvement.
There must be a clear organizational structure for building quality into the products
and services with necessary resources.
The quality management should be implemented formally with well-defined processes
and procedures and trained resources.
Total quality management: This concept is known in Japan as company Wide Quality
Control(CWQC).In1985, the Americans came up with the term Total Quality Management to
represent essentially the Japanese way of quality management.
QUALITY COSTS
The top management looks at every activity in the organization in terms of return on direct and
indirect investment. However, this does not mean that they are looking for short-term gains
only. Top management will adopt ISO 9000 or TQM if it is going to help the organization. In
fact, many companies have adopted ISO9000, TQM, Six Sigma, etc, for growth coupled with
profits. TQM was evolved to satisfy customers in the most economical way. Quality means cost
effectiveness. It reducing expenditure by eliminating wastes through systematic quality
management approach.
Quality cost is a tool to demonstrate cost of poor quality to the top management as well as the
entire organization. It will also highlight the importance of TQM activities to the top
management clearly.
TQM aims at gradual reduction of wasteful expenditure and eventually their total elimination.
Quality costs should be accounted separately so as to know how much the organization is loosing
on account of poor quality.
Cost of Quality
Cost of quality is the sum of costs incurred by an organization in preventing poor quality. There
are essentially three types of quality costs as given below:
1.Prevention Costs, 2.Appraisal costs and 3.Failure costs
This is called PAF model. Any quality cost which arises in an industry can be classified intone of
the above three categories.
The prevention costs are the planned costs incurred by an organization to ensure that no defects
occur in any of the stages such as design, development, production and delivery of a product or
service. Prevention costs include education and training of employees, process control, market
research, product qualification, field testing, audit, quality assurance staff etc.
The appraisal costs are incurred in verifying, checking or evaluating a product or service at
various stages during manufacturing or delivering. They are incurred due to lack of confidence in
the quality of the product or service either due to the incoming material or due to the process.
The failure costs are incurred by an organization because the product or service did not meet the
expected requirements and the product had to be fixed or replaced or the service had to be
repeated. The failure costs are due to the incurred failure of the organization to control defects in
the product.
Basic concepts of TQM
TQM Requires six basic concepts
1. A committed and involved management to provide long-term top-to-bottom
organizational support.
2. An unwavering focus on the customer, both internally and externally.
3. Effective involvement and utilization of the entire work force.
4. Continuous improvement of the business and production process.
5. Treating suppliers as partners.
6. Establish performance measures for the processes.
Management must participate in the quality program. A quality council must be established 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 established and involves input
form the entire work force. TQM is a continual activity that must be entrenched in the culture.
It must be communicated to all people.
TQM program is its focus on the customer. An excellent place to start is by satisfying internal
customers. We must listen to the Voice of the customer. Do it right the first time and every
time, for customer satisfaction is the most important consideration.
TQM is an organization-wide challenge that is everyones responsibility. All personnel must be
trained in TQM, statistical process control, and other appropriate quality improvement skill so
they can effectively participate on project teams.
Quality improvement projects, such as on time delivery, order entry efficiency, billing error rate,
customer satisfaction, cycle time, scrap reduction, and supplier management , are good places to
begin. Technical techniques such as SPC, benchmarking, quality function deployment,
ISO9000, and designed experiments are excellent for problem solving.
The focus should be on quality and life-cycle costs rather than price. Suppliers should be few in
number so that true partnering can occur.
Performance measures such as uptime, percent nonconforming, absenteeism, and customer
satisfaction should be determined for each functional area. Quantitative data are necessary to
measure the continuous quality improvement activity.
HISTORICAL REVIEWS
A BRIEF HISTORY OF QUALITY
1916 - Ford Motor Company developed systematic material handling, machine tool design,
factory layout and final inspection. Automobile production went from ten thousand cars
in 1909 to sixty thousand in 1916. The price decreased from $850 to $350 per car.
1917 - The first published use of the term Control of Quality appeared in Industrial
Management in an article by G. S. Radford.
1922 - G. S. Radford published the first book on Quality Control: The Control of Quality of
Manufacturing.
1924 - Dr. Walter A. Shewhart of AT&T developed the concept of control charts. Dr. Shewhart
is referred to as the father of statistical quality control.
1931 - Dr. Walter A. Shewhart published Economic Control of Manufactured Product. This was
the first in-depth book on statistical quality control.
1941-1945 - The United States was involved in World War II. The war generated the first
extensive use of statistical concepts. U.S. Government suppliers were required to use
statistical quality control. The government sponsored many statistics and quality control
training classes.
1950 - Joseph M. Juran and W. Edwards Deming taught statistical methods and statistical quality
control to the Japanese.
1951 - Joseph M. Juran published the first edition of Quality Control Handbook.
1970's - The focus was on continuous improvement and employee involvement.
1980's - The emphasis was on quality of design and design for manufacturability. Computers
were used extensively in all aspects of quality.
1987 - The International Organization for Standardization (ISO) establishes ISO 9000 Series
Quality System Standards.
1990's - Quality Concepts were extended to service industries. Emphasis is on total quality
management (TQM) and customer satisfaction.
1994 - ISO 9000 Standards were revised (for clarification?). ANSI/ASQC series standards
renamed from Q90 series to Q9000 series.
1996 - Eight thousand U.S. companies have achieved ISO registration since its inception. Eight
percent of all companies that are ISO registered are located in North America. Forty six
percent are located in the United Kingdom.
1996 - Since the ASQC certification program began, more than 55,000 people have become
certified in one or more of the certification areas.
1997 - The American Society for Quality Control (ASQC) officially changed its name to the
American Society for Quality (ASQ).
PRINCIPLES OF TQM
Total Quality Management (TQM) is a management approach focusing on the improvement of
quality and performance in all functions, departments, and processes across the company to
provide quality services which exceed customer expectations. TQM expands the scope of quality
of every department from top management to lower level employees. It enables management to
adopt a strategic approach to quality and put more effort on prevention rather than on inspection.
Through TQM, all employees are trained in a professional manner and encouraged to make
decisions on their own to improve the overall quality and attain higher standards. This is key to
achieving the TQM results desired, because without your employees on board and feeling
empowered, you might as well be swimming upstream.
Through TQM, companies increase customer satisfaction, reduce costs, and foster team work.
Companies can also gain higher returns on sales and investment. The ability to provide quality
services allow for higher prices to be charged. Total quality means better access to global
markets, greater customer loyalty, wider recognition as a quality brand, etc.
8.Drive out Fear: Employees should be encouraged to suggest improvements and new ideas,
ask questions about the exisiting process, etc. If freedom to express new ideas is curtailed, then
the employees will continue to do what they are doing. Fear is detrimental to improvement of
processes.
9.Break down barriers between staff areas: Every team may prove that it is the best. But
organizations as a whole may be doing poorly due to lack of communications between the
teams. TQM dictates removal of barriers between the departments.
10.Eliminate slogans, exhortations and targets for the work force:
Deming says that barriers to quality and productivity exists with in the organization itself..
Slogans and targets for increasing productivity. Hence to achieve higher productivity the
system has to be improved for which management is responsible.
11.Eliminate Numerical quota for the work force and goals for the people in management:
Setting a target for production, say producing 1000 bolts per shift etc may affect the quality of
workmanship. This forces the worker to ignore quality and concentrate on quantity.
Goals such as growth of business by 15 per cent or reduction quality costs by 5per cent given
in a New Year day will end like new Yea promises. Such improvement should arise out of
improving processes .
12.Remove barriers that rob people of pride of workmanship: The organization should
establish the right processes and proper system for quality management. This will lead to
carrying out jobs correctly, it gives pride to those who did. Removing the obstacles to this pursuit
is the responsibility of the top management.
13.Encourage education and self-improvement for every one: Employees should be
encouraged to pursue higher education and training while in service , for improving the skills or
updating knowledge. If an employee undergoes education or training , it will improve his
ability , which will be beneficial to the organization.
14.Take action to accomplish the transformation: They should have the courage to break the
status quo and improve their employees, processes, system and there by their products
continually. They should identify all the processes in the organization and improve each one of
them using PDSA cycle.
Barriers / Obstacles to TQM Implementation: There could be many barriers to TQM
implementation in an organization. Some of the commonly found barriers are listed below:
1. Lack of top Management Commitment
2. Lack of employee involvement
3. Non-cooperation of first line managers and middle management
4. Lack of clarity in vision
5. Losing track of business performance
6. Not involving customers and suppliers
7. Belief that training leads to employee attrition
8. Resistance to change at all levels
9. Ineffective TQM facilitator
10. Wrong consultant
11. Lack of consistency and persistency by the management
12. Haste and thereby waste
13. Looking for immediate gains
14. Not investing adequate resources
15. Adhoc organization
16. Quick obsolescence of products
17. Loosing confidence in the middle of the journey due to various reasons
18. Working harder than smarter
19. Tough competition leading to frequent price war
20. Unable to find champions within the organization
21. Not properly staffed-too many or too less number of employees.
The barriers can be overcome by dedicated work force with a strong and committed leadership.
TQM is management philosophy that seeks to integrate all organizational functions (marketing,
finance, design, engineering, production, customer etc) to focus on meeting customer needs and
organizational objectives.TQM views an organization as a collection of processes. It maintains
that organizations must always strive to continuously improve these processes by incorporating
the knowledge and experiences of workers.
Implementation of Quality
The implementation of total quality is similar to that of other decentralized control methods. In
developing TQM, companies need to understand how consumers define quality in both goods
and services offered. If a company pays more attention to quality in its production processes,
fewer problems are bound to occur when the product is in the customers hands. Management
should make a commitment to measure the performance of a product relative to its quality
through customer surveys, which can help managers to identify design, manufacturing or any
other process that has a bearing on the quality of a product or service, and therefore provide an
opportunity for continuous improvement.
An obstacle is an object, a thing, an action or a situation that causes an obstruction. Obstacles can
be physical, social, economic, technological or political. There are a number of barriers that face
the process of TQM implementation.
Discussed below are some of the barriers or obstacles that total quality management face during
implementation. Most scholars who have researched on the subject choice to focus on the
specific industries like the construction, Agriculture e.t.c and specific economies. What we came
up with are general barriers that are likely to cut across the economic board.
1. Competitive markets
A competitive market is a driving force behind many of the other obstacles to quality. One of
the effects of a competitive market is to lower quality standards to a minimally acceptable level.
This barrier to quality is mainly a mental barrier caused by a misunderstanding of the definition
of quality. Unfortunately, too many companies equate quality with high cost. Their definition
leads to the assumption that a company cant afford quality. A broader definition needs to be
used to look at quality, not only in the companys product, but in every function of the company.
All company functions have an element of quality. If the quality of tasks performed is poor,
unnecessary cost is incurred by the company and, ultimately, passed to the customer. TQM
should work by inspiring employees at every level to continuously improve what they do, thus
rooting out unnecessary costs. Done correctly, a company involved with TQM can dramatically
reduce operating costs. The competitive advantage results from concentrating resources (the
employees brainpower) on controlling costs and improving customer service.
2. Bad attitudes/abdication of responsibility/management infallibility
The competitive environment, poor management practice, and a general lack of higher
expectations have contributed to unproductive and unhealthy attitudes. These attitudes often are
expressed in popular sayings, such as Its not my job and If I am not broke, dont fix it. Such
attitude sayings stem from the popular notion that management is always right and therefore
employees are only supposed to implement management decisions without questioning.
Lethargy is further propagated through managements failure to train employees on TQM
fundamentals that build better attitudes by involving them in teams that identify and solve
problems. Such training can transform employees from being part of the problem to part of the
solution. This will foster motivation and creativity and build productive and healthy attitudes that
focus employees on basic fundamentals, such as: keep customer needs in mind, constantly look
for improvements, and accept personal responsibility for your work.
3. Lack of leadership for quality
Excess layers of management quite often lead to duplication of duty and responsibility. This has
made the lower employees of an organization to leave the quality implementation to be a
managements job. In addition, quality has not been taken as a joint responsibility by the
management and the employees. Coupled with the notion that management is infallible and
therefore it is always right in its decisions, employees have been forced to take up peripheral role
in quality improvement. As a result employees who are directly involved in the production of
goods or delivery of services are not motivated enough to incorporate quality issues that have
been raised by the customers they serve since they do not feel as part of the continuous process
of quality improvement. Moreover, top management is not visibly and explicitly committed to
quality in many organizations.
The dictionary meaning of customer means , some one who pays for goods and services.
Here are the top six reasons why customer satisfaction is so important:
Customer satisfaction is the best indicator of how likely a customer will make a purchase in the
future. Asking customers to rate their satisfaction on a scale of 1-10 is a good way to see if they
will become repeat customers or even advocates.
Any customers that give you a rating of 7 and above, can be considered satisfied, and you can
safely expect them to come back and make repeat purchases. Customers who give you a rating of
9 or 10 are your potential customer advocates who you can leverage to become evangelists for
your company.
Scores of 6 and below are warning signs that a customer is unhappy and at risk of leaving.
These customers need to be put on a customer watch list and followed up so you can determine
why their satisfaction is low.Thats why its one of the leading metrics businesses use to measure
consumer repurchase and customer loyalty.
Not only can customer satisfaction help you keep a finger on the pulse of your existing
customers, it can also act as a point of differentiation for new customers.
An Accenture global customer satisfaction report (2008) found that price is not the main reason
for customer churn; it is actually due to the overall poor quality of customer service. By
measuring and tracking customer satisfaction you can put new processes in place to increase the
overall quality of your customer service.
4. It increases customer lifetime value
Satisfaction plays a significant role in how much revenue a customer generates for your business.
Successful businesses understand the importance of customer lifetime value (CLV). If you
increase CLV, you increase the returns on your marketing dollar.For example, you might have a
cost per acquisition of $500 dollars and a CLV of $750. Thats a 50% ROI from the marketing
efforts. Now imagine if CLV was $1,000. Thats a 100% ROI! Customer lifetime value is a
beneficiary of high customer satisfaction and good customer retention.
McKinsey found that an unhappy customer tells between 9-15 people about their experience. In
fact, 13% of unhappy customers tell over 20 people about their experience. Thats a lot of
negative word of mouth.
Customer satisfaction is tightly linked to revenue and repeat purchases. What often gets forgotten
is how customer satisfaction negatively impacts your business. Its one thing to lose a customer
because they were unhappy. Its another thing completely to lose 20 customers because of some
bad word of mouth.
To eliminate bad word of mouth you need to measure customer satisfaction on an ongoing
basis. Tracking changes in satisfaction will help you identify if customers are actually happy
with your product or service.
This is probably the most publicized customer satisfaction statistic out there. It costs six to seven
times more to acquire new customers than it does to retain existing customers. If that stat does
not strike accord with you then theres not much else I can do to demonstrate why customer
satisfaction is important. Customers cost a lot of money to acquire. You and your marketing
team spend thousands of dollars getting the attention of prospects, nurturing them into leads and
closing them into sales.
1. Offer Prompt Attention: Everyone wants prompt attention. The longer a caller has to hold,
get passed between departments, wait for someone to find information or have to leave a
voice mail message, waiting in limbo for a response, the more impatient they become. You
need a documented process to ensure callers are routed to a person who can assist them from
the get-go. You also need a way to monitor your service levels so you can take decisive action
if you are seeing delays. The public has been subjected to such awful service levels during
most of their interactions that they are genuinely gratefulto receive good service.
2. Have a helpful Patient Attitude: If your caller thinks that someone doesnt really want to
help them and cant wait to get rid of them, they can go from 0 to 100 on the angryscale in
about one second flat. Genuine caring and patience are the only ways to create a real sense
of satisfaction. Regularly coaching the personnel who handle your calls on how to project the
right attitude and then monitoring their progress is a must.
3. Listen and Acknowledge: This is second only to food and shelter in the human hierarchy of
needs. We have an overwhelming desire to be understood. It is a great relief when someone
has acknowledged our needs. It is deeply frustrating when you feel that isnt happening.
Good active listening skills require training and practice.
4. Resolve Problems Rather than Placing Blame: We seem to be allergic to blame and our
instant reflex is to come up with lots of excuses for why a situation isnt our fault. Throwing
blame back in a callers lap is sure to provoke the same reaction in them. Then things start to
escalate. Focus your personnel on resolving problems during calls rather than finding fault.
Recording calls is a great teaching tool. You can share best practices and give specific
coaching to representatives with weaker skills.
5. Set Accurate Expectations: If you dont set accurate expectations, you have guaranteed that
you are going to disappoint a customer. One of your most important goals during every call
should be to instill confidence in callers. You may not be able to give them everything they
might have liked, but the focus of your conversations should be about what you can do for
them and specifically how and when important things will happen. This will only occur if you
have trained your employees on how your internal processes actually work and the time
frames they operate within.
Customer complaints
Do you remember when the customer was king--when businesses lived by one simple credo: the
customer is always right? These days customer service is suffering as less qualified individuals
fill jobs out of necessity.
Don't believe me? Listen to this gem that happened this week. My wife was shopping in a local
national discount retailer. She purchased several items but when she got to the car realized that
the clerk had not given her the discounted price of 25% off as was indicated on the yellow
stickers on some of her items.
My wife returned to the store, patiently waited in line again, and when it was her turn politely
explained to the clerk what had happened and simply asked that her card be credited for the
discount that should have been included. To my wife's surprise the clerk looked at her and said
the following:
"No. How do I know you did not just stick these yellow sales stickers on the items yourself?"
Without missing a beat my wife simply smiled and said "You're right, I'll return everything.
Thank you."
Upon seeing this exchange at least one other customer waiting in line put down her items, and
said audibly so that other customers could hear her "I don't need to be treated like that " and
walked out of the store.
So aside from learning never mess with my wife, she always wins, what can we take away from
this on a customer service level?
How you handle a customer complaint is a critical component in the longevity of your business.
If you think about it, in one accusatory sentence the employee 1) failed to listen to a customer's
concern, 2) insulted the customer by effectively calling her a thief, 3) lost the entire sale to that
customer and at least one other customer, and 4) lost the entire future revenue stream from that
customer as the Mrs. will never shop there again. Wow. All that in one misguided response.
Teach all your employees how to handle complaints like a pro:
1. Listen and Understand
First, always listen to the customer. They are concerned about an aspect of your services. Let go
of the temptation to respond in any quick fashion. Take the time to listen and truly understand
what is driving their concern.
2. Empathize
Once you have listened to their concern immediately empathize with their position to create a
bond between you and the customer so that they know you have heard their concern and are
going to work with them to resolve the issue.
3. Offer a Solution
Offer a solution to their problem. In this regard, always focus on what you can do as opposed to
what you cannot. There is always a solution. It may not be exactly what they are asking for, but
if you focus on what you can do versus denying them their requested remedy you have still
offered a solution and often merely having another option is sufficient to remedy the situation.
4. Execute the Solution
Solve their problem be it with their originally requested resolution or an alternative you have
proposed.
5. Follow-Up
Once you have gone through the first four steps, make sure to follow-up with them to make sure
that they are satisfied with the solution and that you have taken care of their concern.
SERVICE QUALITY
Meaning of service
An assessment of how well a delivered service conforms to the client's expectations. Service
business operators often assess the service quality provided to their customers in order
to improve their service, to quickly identify problems, and to better assess client satisfaction.
The definition of service as per the international standard, ISO9000 follows:
The results generated , by activities at the interface between the organization and the customer
and by the organizations internal activites , to meet customer needs.
Service quality(SQ) is a comparison of expectations (E) about a service with performance (P)
SQ=P-E.
A business with high service quality will meet customer needs whilst remaining
economically competitive. Improved service quality may increase economic competitiveness.
This aim may be achieved by understanding and improving operational processes; identifying
problems quickly and systematically; establishing valid and reliable serviceperformance
measures and measuring customer satisfaction and other performance outcomes.
From the viewpoint of business administration, service quality is an achievement in customer
service. It reflects at each service encounter. Customers form service expectations from past
experiences, word of mouth and advertisement. In general, Customers compare perceived service
with expected service in which if the former falls short of the latter the customers are
disappointed.
For example, in the case of Taj Hotels Resorts and Palaces, wherein TAJ remaining the old
world, luxury brand in the five-star category, the umbrella branding was diluting the image of the
TAJ brand because although the different hotels such as Vivanta by Taj- the four star
category, Gateway in the three star category and Ginger the two star economy brand, were
positioned and categorised differently, customers still expected high quality of Taj.
Service quality can be related to service potential (for example, worker's qualifications); service
process (for example, the quickness of service) and service result (customer satisfaction).
Individual service quality states the service quality of employees as distinct from the quality
that the customers perceived.
Customer retention is the activity that a selling organization undertakes in order to reduce
customer defections. Successful customer retention starts with the first contact an organization
has with a customer and continues throughout the entire lifetime of a relationship. A companys
ability to attract and retain new customers is not only related to its product or services, but also
strongly related to the way it services its existing customers, the value the customers actually
generate as a result of utilizing the solutions.
Customer retention is more than giving the customer what they expect, its about exceeding their
expectations so that they become loyal advocates for your brand. Creating customer loyalty puts
customer value rather than maximizing profits and shareholder value at the center of business
strategy.
An assessment of the product or service quality provided by a business that measures how loyal
its customers are. Customer retention statistics are typically expressed as a percentage of long
term clients, and they are important to a business since satisfied retained customers tend
to spend more, cost less and make valuable references to new potential customers.
Employee involvement
The employees are the strength of an organization. They are the prime contributors to success of the
organization. When an organization wants to expands its business or increase its profits, only the
employees can make it happen. Any improvement will happen only because of the employees.
In this chapter , wel will discuss the following TQM PRINCiples and strategies pertaining the to
employee involvement.
.Motivation
Teamiwrok
Training and mentor
Recognistion and Rewards
Feedback and performance Appraisal
Empowerment
Employee motivation
Motivated teams lead to the success of organization. However, the concept of employee mtoviation is
difficult to understand, because human nature is quite complex.However, some behvaioural patterns
have emerged over the years. For instance, in every organization there are three categories of
people.
It is believed that, 10% self actualized employees are self motivated, they contineue to do their
best. They never get demotivataed , even if there are demotivating factors in the organization. The
bottom 10% are the diffuclt to improve people who do not get motivated. However 80% percent of
people are fence sitters. The join the top 10%, if the management is effectivie. Essenally if the
top10% are recognized, rewarded and treated well then the middle 80% are drawn to them.
Sigmund Freud is the author of theory X.Theory X characterizes employees as given below:
.Aviod work
.No ambition
.No initiative
.Need security
*Coerce (Force)
*Punish
This theory assumes that, the employees cannot be truseted and the employees have to be
supervised all the times.
Theory Y: Douglas McGregor is the author of theory Y. McGregors theory of people are given below:
*Want to learn
*Develop themselves
These employees do not get mtotivated as much any reward, butyehy seek freedom to do difficult
and challenging the jobs, all by themselves. If all employees are of this type then there is no need for
supervision
Abraham Maslows:
Maslow
self-actualization needs
Esteem needs
Social/belongingness needs
Safety needs
Physiological Needs
Specific examples of these types are given below, in both the work and home context. (Some of
the instances, like "education" are actually satisfiers of the need.)
According to Maslow, lower needs take priority. They must be fulfilled before the others are
activated. There is some basic common sense here -- it's pointless to worry about whether a
given color looks good on you when you are dying of starvation, or being threatened with your
life. There are some basic things that take precedence over all else.
Or at least logically should, if people were rational. But is that a safe assumption? According to
the theory, if you are hungry and have inadequate shelter, you won't go to church. Can't do the
higher things until you have the lower things. But the poor tend to be more religious than the
rich. Both within a given culture, and across nations. So the theory makes the wrong prediction
here.
Or take education: how often do you hear "I can't go to class today, I haven't had sex in three
days!"? Do all physiological needs including sex have to be satisfied before "higher"
needs? (Besides, wouldn't the authors of the Kama Sutra argue that sex was a kind of self-
expression more like art than a physiological need? that would put it in the self-actualization
box). Again, the theory doesn't seem to predict correctly.
.Achivement
Teamwork: Teams are formed to fulfill theobjectives. It is part of the regular organizational structure
of the organization. The team co-ordinator will coordinate the day-to-day activites of the team.He
may be called a manager, supervisor, team leader, head, team co-ordinator etc. The teams are made
to do more work. A single man, cannot have more knowledge than a group of people. So group of
people have special abilities and expertise in the particular area, then they solve problems quickly
and easily.
It is the responsibility of the management to foster team work amogs the employees. It requires clear
definition of the following:
1.Responsiblity
2.Authority
EMPLOYEE INVOLVEMENT
Some of the most successful companies are those that have achieved a close relationship between
workers and the managers. The policies in these companies fostered teamwork, participation,
continuous learning and flexibility
EMPLOYEE EMPOWERMENT
While the actual practice of employee empowerment varies across organizations, empowerment
is based on the fundamental concepts of job enlargement and job enrichment. Job
enlargement involves changing the scope of the job to include a greater portion of the horizontal
process. Job enrichment involves increasing the depth of the job to include responsibilities that
have traditionally been carried out at higher levels of the organization.
While both employee involvement and employee empowerment are each distinct practices and
are usually mutually exclusive to one another, the benefits of each can be similar. The main
benefits of employee involvement and empowerment are enhanced morale, more productivity,
healthier coworker relationships and creative thinking.
1) Improved Morale. Involving employees in decisions and policy changes that directly affect
their jobs while also empowering employees to be more autonomous, greatly improves company
morale at large. When employees are treated as an asset and their input is given consideration,
confidence increases among every team member, and the organization sees significant gains in
different facets such as productivity and loyalty. Improved morale can also increase employee
longevity with the company, as the longer an employee is associated with the company, the more
experienced they become. This makes them mentors to new employees and therefore
indispensable to managerial staff.
Empowerment:
Empowerment and ownership are synonymous. Empowerment of employees is one of the attest
management techniques deployed to results in continuous improvement in the orgnaisation.
Empowerment means involvement of all the employees for improvement of process on continual
basis. It is just the opposite of strict hierarchical Do what I say approach in the organization.
It is a new concept which matches well with TQM.
Empowerment is an organizational state, where people are aligned with business direction and
understand their performance boundaries, thus enabling them to take responsibility and
ownership while seeking improvement, identifying the best course of action and initiating stpes
to satisfy customer requirements.
A management practice of sharing information, rewards, and power with employees so that they
can take initiative and make decisions to solve problems and improve service and performance.
Performance appraisal
Appraisal is an integral part of system of managing. Knowing how well a manager
plans,organizes,staffs, leads, and controlls is really the only way to ensure that those occupying
managerial positions are actually managing effectively. If a business, a government agency, a
charitable organizations, or even a universally is to reach its goals effectively and efficiently,
ways of accurately measuring management performance must be found and implemented. The
performance appraisal is an essential part of the human resources department's contribution to an
organization. An effective appraisal may not only eliminate behavior and work-quality problems,
it can motivate an employee to contribute more. Often, a company will ask its employees to
perform "360-degree feedback" that assesses peers and subordinates as well as supervisors and
management.
v.Performance appraisal often provides the rational foundation for the payment ofpiece work,
wages, bonuses etc.
vi.Performance appraisal serves as a means for evaluating the effectiveness of devices for the
selection and classification of workers.
Essentialsof a good appraisal system: Following are the essentials of a good appraisal system:
iii. The system should fit the organisations operations and structure.
v. The system should have built-in incentives, that is, areward should followsatisfactory
performance.
vi.The system should be periodically evaluated to besure that it is continues to meet its goals.
1.Ranking method: This is oldest and simplest method. This method of performance appraisal
is to compare one man with all other men and place him in a simple rank order. In this way,
ordering is done from best to worst of all individuals comprising the group.The method is both
simple and natural.
2.Rating-scale method: We have seen how ranking methods are unsuitable, both where the
number of persons to be approaised is large and where it is desired to gain information about the
size of absolute differences between the rated individuals. In such cases,rating-scale method may
be used. As the very name implies, these methods provide some kind of a scale for measuring
absolute difference between individuals. The rating scales used are generally of two types. They
are
i.Discrete rating method: Where two or more categories are provided, representing discrete
amount of ability or degrees of the characteristics, the rare can tick mark the category which he
feels best describes the person being rates. For example, the characteristic Job Knowledge may
be divided into five categories on a discrete scale:
ii. Continuous graphic rating method: Where just above the category notations an
uninterrupted line is provided, the rater can tick at any point along its length as shown below.
3.Check listmethod: Sometimes the method used for performance appraisal is a list consisting
of a number of statements about the worker and his behaviour. Each statement on this list is
assigned a value depending upon its importance. Both statements and their values are derived
from preminary research in which the pooled judgements of persons familiar with the job are
used.
2.A separate checklist is needed for each because statements used in one checklist to valuate
one category ofworkers cannot be used in another checklist to evaluate other categories of
workers.
4. Forced choice method: A forced choice rating form consists of a number of statements
which describe an individual being rated. These statements are grouped in twos, threes, or fours.
Sometimes, all groups on the rating form are made of favourable statements only, sometimes all
haveunfaourable statements only and sometimes they have both favourable and unfaourbale
statement in equal number.
1.It is expensive to install because the statements must be custom-tailored to the demands of the
particular job and company.
2.It is resented by the rater because the implicit assumption behind it is that the rater cannot be
trusted to make an impartial evaluation.
Features
Continuous improvement processes feature a systems approach to improving the work flow in an
organization. Typical phases of the model include an analysis phase to identify specific
problems. During this phase, teams conduct brainstorming sessions and interviews to gather
relevant information. In the next phase, the design phase, the project team determines what to do
to remedy the problems. During the implementation phase, the team members responsible for
carrying out the tasks take action. Finally, during the evaluation phase, team members monitor
the outcome and determine if the adjustment to the process has produced the desired result.
Benefits
Continuous improvement processes allow project team members to uncover problems and
determine ways to fix them. Through careful analysis, team members can see how individual
tasks impact a business's overall process. Because project teams work closely together, work
group conflicts can also be resolved as a part of the continuous improvement effort.
Analysis
Project teams examine processes to identify their beginning and end points. The process's
beginning trigger starts when a team member performs an action based on input from a
stakeholder, supplier or other work team. The ending trigger results in the process output passing
on to the customer. Continuous improvement process activities examine each step to determine
where problems exist. For example, an analysis of a sales process may include the following
steps: the identification of customer needs; suggesting of products; convincing of the customer;
negotiating of a price; and closing the sale. Creating a matrix to identify each steps goal and
output allows participants to identify any possible bottlenecks at each point.
Eliminating Root Causes
Not eliminating the root cause of a problem generally causes it to surface elsewhere. By
questioning why things occur, project teams can design a plan to counteract a problem. Plans
usually include a description of the problem and details about what should be done to remedy the
situation. For example, if customer satisfaction rates decrease consistently for several months, a
project team can create an action plan to increase customer satisfaction by 10 percent by the end
of the year. By surveying dissatisfied customers, project members can learn more about the
problem and determine how to fix it. Then, the project team can devise a solution and distribute
it to all customers.
Evaluation
Determining if a continuous improvement process works involves using operational metrics to
gauge success. Metrics include such variables as customer satisfaction, cost per order, defects per
million and the number of people involved the process. Using tools, such as a Pareto chart, to
sort data into a visual chart allows a manager to determine if the biggest problems can be
corrected by improvements. Research has found that 80 percent of the negative effects of a
business tend to originate from only 20 percent of the causes.
Joseph Juran has explained his model of quality improvement on the basis of the basis of three
universal processes which have been popularly named a Juran Trilogy.
1. Quality Planning
In the planning stage, it is critical to define who your customers are and find out their needs (the
voice of the customer). After you know what your customers need, youre able to define the
requirements for your product/process/service/system, etc., and develop it. Additionally, any
plans that might need to be transferred to operators or other key stakeholders should be done
during the planning phase. Planning activities should be done with a multidisciplinary team, with
all key stakeholders represented.
2. Quality Control
During the control phase, determine what you need to measure (what data do you need to know
if your process is working?), and set a goal for your performance. Get feedback by measuring
actual performance, and act on the gap between your performance and your goal. In Statistical
Process Control (SPC), there are several tools that could be used in the control phase of the
Juran Trilogy: Pareto Analysis, flow diagrams, fishbone diagram, and control charts, to name a
few.
3. Quality Improvement
There are four different strategies to improvement that could be applied during this phase:
. The PDSA Cycle is a systematic series of steps for gaining valuable learning and knowledge for
the continual improvement of a product or process. Also known as the Deming Wheel, or
Deming Cycle, the concept and application was first introduced to Dr. Deming by his mentor,
Walter Shewhart of the famous Bell Laboratories in New York.
The cycle begins with the Plan step. This involves identifying a goal or purpose, formulating a
theory, defining success metrics and putting a plan into action. These activities are followed by
the Do step, in which the components of the plan are implemented, such as making a product.
Next comes the Study step, where outcomes are monitored to test the validity of the plan for
signs of progress and success, or problems and areas for improvement. The Act step closes the
cycle, integrating the learning generated by the entire process, which can be used to adjust the
goal, change methods or even reformulate a theory altogether. These four steps are repeated over
and over as part of a never-ending cycle of continual improvement.
Kaizen can be roughly translated from Japanese to mean "good change." The philosophy behind
kaizen is often credited to Dr. W. Edwards Deming. Dr. Demming was invited by Japanese
industrial leaders and engineers to help rebuild Japan after World War II. He was honored for his
contributions by Emperor Hirohito and the Japanese Union of Scientists and Engineers.
In his book "Out of the Crisis," Dr. Deming shared his philosophy of continuous improvement:
1. Create constancy of purpose toward improvement of product and service, with the aim to
become competitive and to stay in business and to provide jobs.
3. Eliminate the need for inspection on a mass basis by building quality into the product in
the first place.
4. End the practice of awarding business on the basis of price tag. Instead, minimize total
cost.
5. Improve constantly and forever the system of production and service to improve quality
and productivity and thus constantly decrease costs.
7. Institute leadership. The aim of supervision should be to help people and machines and
gadgets to do a better job.
8. Drive out fear so that everyone may work effectively for the company.
9. Break down barriers between departments. People in research, design, sales and
production must work as a team to foresee problems of production and use of the product
or service.
10.Eliminate asking for zero defects and new levels of productivity. Such exhortations only
create adversarial relationships as the bulk of the causes of low quality and low
productivity belong to the system and thus lie beyond the power of the work force.
11.Remove barriers that rob the hourly worker of his right to pride of workmanship.
12.Remove barriers that rob people in management and in engineering of their right to
pride of workmanship.
1.Maintenance
2.Improvement
iii. Standardisation
1.Muda -Waste
2.Muri-Strain
3.Mura Discrepancy
5s Practices: The Kaizen tool baox includes the 5s for improving workplace effectivenss. The
5s practices are
(i) Sort
(ii) Straighten
(iii) Scrub
(iv) Systematize
(v) Standardize. 5s practices which are also called 5s tools.
(i) Sort (Seiri) - Separate out all unnecessary things and eliminate them.
(ii) Straighten (Seiton) Arrange the essential things in order , so that they can be easily
accessed.
(iii) Scrub(Seiso)- Keep machinery and working environment clean.
(iv) Systematize (Seiketsu)- Make cleaning and checking as a routine practice
(v) Standardize(Shit sulve) Standardize the previous four step.
Supplier Partnership: Supplier partnership is one of TQM elements. One of the reasons for
success of Toyotao Motors and such other organization is developing and nurturing good
vendors or suppliers of materisl , parts components and sub-assemblies. Hence, supplier
partnership is very essential for every organization.
Importance of suppliers
1.The dynamics of market forces demand every organization to convert itself into a virtual
corporations for cost effectiveness and improved quality.
2.In a virtual organization, the main function of the company is to make the core of the system
and depend on a large network of suppliers for the rest of the sub-assemblise needed for
building the system.
3.A large portion of the work is outsourced. Outsourcing has become the watchword even in
services.
4.Outsourcing enables the the manufacturers to focus their attention in managing their brands
rather than capital equipment required for manufacturing every part.
Supplier selections
Lets discuss the 5 steps you should take in order to make the correct decisions in supplier
selection.
The supplier selection scorecard contains all the important elements you require in a supplier. It
has long been stated, That which does not get measured, does not get done.
Tabulate the information you collect and use the scorecard to rank the potential suppliers.
Depending upon the complexity and/or criticality of the product or service, you may:
Select the highest ranking supplier Recognize that while you are not required to pick the top
scorer, moving too far down the list is a red flag, indicating the process was flawed.
Choose more than one for further qualification May include interviews, site visits, etc.
If all that work did not identify a clear winner, you may need to review your criteria and/or
expand your search.
Step 4 Negotiate
After you have narrowed the list to a manageable number of best options, possibly even one, let
the negotiations begin!
Depending on the critical good or service, you may negotiate with just the top supplier on your
scorecard, even if others remain on the list of potentials.
These others, of course, are not told they are not #1 until after you have completed negotiations
and agreements are completed.
Step 5 Create Contract and Activate Purchasing System
Once an agreement has been reached, a contract is signed. Again, depending upon complexity,
lawyers may be involved. For simpler transactions, the Purchase Order is the contract.
Supplier rating:
Relationships developed through a number of stages. Presented here is a comprehensive
generic model, based on a wide review of other models. Note that it focuses on growth of the
relationship and does not include subsequent breakdown stages. Also note that these stages are
not all sequential. Phases 3 to 5 in particular are likely to have some overlap.
The duration of each phase may vary significantly, from moment to years, based on
opportunity and motivation of the parties.
Phase 1: Before meeting
Before the people in a relationship ever meet, there are a number of activities that may happen,
leading up to the first meeting. If the meeting is by chance (or design of others) then this stage
is effectively skipped.
Knowing about them
The first step is to know that they exist. One person usually knows first and the second person
may not know until the first meeting.
Knowing about them may happen in various ways, for example a man may see a woman in a
bar or a sales person hears of a possible customer from a colleague.
Learning about them
More information is often needed to motivate a desire for contact. This may be done by first-
hand research, where the person actively looks for information by the other party. If there is a
third person helping out, they may volunteer information, for example where a friend is
'match-making' or a company researches prospects for a salesperson.
Wanting to meet
With enough information, the motivation for a relationship begins. This can range from a
cautious interest to early strong desire, such as when a woman sees a man she does not know at
a party and is immediately attracted to him.
Seeking contact
With the motivation to meet, the next (and sometimes difficult) step is figuring out how to get
to meet them. This may be through friends who will enquire if the other person is interested
(and help them through this phase).
Phase 2: Getting to know you
In this phase, contact is made with the other person and early negotiations lead either to
departure or continuation of the relationship.
First contact
First contact with the other person is an important and difficult stage as early impressions are
important although this is easy to get wrong. When we meet others we seek to classify them,
typically using global or personal stereotypes which are often inadequate for the decisions
made at this time.
Typically, greeting between strangers is highly formalized, with handshakes, exchange
of names and simple pleasantries such as discussing the weather, local sports or other safe
topics.
Basic exchange
Possibly within the first contact and possibly in subsequent meetings there is an exchange of
information which allows each person to refine their impression of the other person and decide
whether they want to continue with the relationship.
Exchange at this level typically includes a seeking of common factors such as origins, hobbies,
families, friends, work and so on. There is also information exchange which helps with the
next stage of deciding where to take the relationship. A typical question to help this is 'What do
you do?', which effectively translates as 'how could you help me'.
Deciding desired relationship
From the information gained so far, the possibilities for the nature of an ongoing relationship
should be clear, whether it is one of friendship, convenience, exchange or romance.
Acquaintance
If the relationship is not going to get any closer, then its development stops here. This is quite
common and most people have many acquaintances with relatively few good friends.
The state of acquaintance is a safe position whereby there is no obligation between the two
people and it is easy to refuse any request. Interaction is functional with a clear and simple
request/response structure.
Phase 3: Getting close
When both parties want to develop the relationship further, then there is more activity to get to
a stronger closeness.
Seeking more contact
Getting closer means spending more time with the other person. This starts with proposals and
continues with 'dates' in which pre-planned activities are jointly carried out.
Revealing secrets
A common part of developing intimacy is in revealing things about yourself that you would not
easily tell others. This says 'I trust you' and encourages a reciprocal exposure of vulnerabilities.
Dancing to and fro
Coming together is seldom a single movement and often appears as a dance with one
approaching, the other retreating then moving back in and so forth. This tests the determination
and commitment of the other person in seeking a lasting relationship.
Intensifying the relationship
As the people get closer, the things that they do together show increasing commitment and
sharing. The speed and depth of this stage will vary greatly with the relationship.
Romantically, this goes from touching to kissing to petting and intercourse. In sales it would
include courting the customer, serious consideration of products and final sales. After sales the
relationship may well continue with ongoing support and loyalty into referrals and future sales.
Phase 4: Stabilizing
Even when the relationship seems to have reached its peak, there is more work to do to create a
stable, longer-term relationship.
Honeymoon
After first getting together there is often a 'honeymoon' period when everything goes
wonderfully well and each person cannot imagine not being in the relationship.
In studies of romantic relationships, it has been show that can last up to two years. However, in
the end, reality bites, the wings dissolve and the parties either find a working 'normal'
relationship or otherwise drift apart.
Storming
After having a close relationship with someone for a while, those endearing little affections can
turn into annoying habits as the little things that you once forgave become major irritations.
The relationship may also become rather one-sided as one person does much more of the
running and the other sits back and lets it happen. Again, for the person putting in the effort
this can be rather annoying.
The relationship can consequently turn from being relatively harmonious to being marked with
regular disagreement and acrimonious argument.
This is another stage at which the relationship may break up if the challenge to ongoing
stability is not met.
Sometimes relationships can remain in the storming stage for a long period, resulting in a long
journey along a very rocky road which bumps and grinds and wears everyone down.
Stabilizing
If there is still sufficient commitment for the relationship to continue, differences need to be
resolved or at least moved to an acceptably workable footing.
If storming has been particularly acrimonious then the partners may have hurt one another
deeply. This may require deliberate reconciliation with support from a third party mediator or
counselor of some sort.
Acceptance, understanding and heartfelt apology are common in this stage, as is constructive
dialog that works towards an effective long-term relationship in which neither is overly
dominant and where each puts effort into meeting the needs of the other.
Phase 5: Developing commitments
Alongside and within the previous two phases commitments may be made to the relationship
and to one another.
Internal commitment
Along the way and at particular times, the individual person mulls over the relationship and its
importance and makes personal decisions to commit time and effort to making the relationship
work.
Trust is an important driver of this - if I do not trust you, then I would put myself at risk if I
made commitments.
Demonstrating commitment
When a commitment is demonstrated to the other person, it encourages them to also show their
commitment in return and so deepen the relationship. Demonstration of commitment includes
such as:
Giving one's time to the other
Keeping appointments (and arriving on time)
Talking up the partner in conversations with other people
Providing emotional support in times of distress
Giving gifts and otherwise transferring resources to the other
Socializing
Demonstrating commitment also sends a message to other people that this is an important
relationship. When we make something public, it becomes harder to go back on the
commitment.
Formalizing the commitment
There are a number of ways in which a commitment may be formalized, and so making it harder
for either party to renege on the agreement. In a commercial situation, contracts are commonly
used. In romantic relationships, commitments include moving in together, getting married and
having children.
Performance measures quantitatively tell us something important about our products, services,
and the processes that produce them. They are a tool to help us understand, manage, and improve
what our organizations do. Performance measures let us know:
A performance measure is composed of a number and a unit of measure. The number gives us a
magnitude (how much) and the unit gives the number a meaning (what). Performance measures
are always tied to a goal or an objective (the target). Performance measures can be represented
by single dimensional units like hours, meters, nanoseconds, dollars, number of reports. number
of errors, number of CPR-certified employees, length of time to design hardware, etc. They can
show the variation in a process or deviation from design specifications. Single-dimensional units
of measure usually represent very basic and fundamental measures of some process or product.
Most performance measures can be grouped into one of the following six general categories.
However, certain organizations may develop their own categories as appropriate depending on
the organization's mission:
1. Effectiveness: A process characteristic indicating the degree to which the process output
(work product) conforms to requirements. (Are we doing the right things?)
2. Efficiency: A process characteristic indicating the degree to which the process produces
the required output at minimum resource cost. (Are we doing things right?)
3. Quality: The degree to which a product or service meets customer requirements and
expectations.
4. Timeliness: Measures whether a unit of work was done correctly and on time. Criteria
must be established to define what constitutes timeliness for a given unit of work. The
criterion is usually based on customer requirements.
5. Productivity: The value added by the process divided by the value of the labor and capital
consumed.
6. Safety: Measures the overall health of the organization and the working environment of
its employees.
Performance data must support the mission assignment(s) from the highest organizational level
downward to the performance level. Therefore, the measurements that are used must reflect the
assigned work at that level.
A quantifiable indicator used to assess how well an organization or business is achieving its
desired objectives. Many business managers routinely review various performance
measure types to assess such things as results, production, demand and operating
efficiency in order to get a more objective sense of how their business isoperating and
whether improvement is required.
Vendor rating system: Vendors may be rated based on any or all of the following factors.
i.Quality , ii. Price and iii. Delivery
Quality rating (QR) for a lot or consignment is given by
Performance measures: One of the important principles of TQM is to measure for success.
Therefore performance should be measured to know clearly whether an organization is achieving
its objectives and goals.
PDCA for measurement
PDCA cyles may be used for determining performance measures as explained below:
1.Plan Phase: Duringthis phase, the possible measures are identified. The right measure is the
one that can help the organization to prove a point. For instance, we may want to prove or
disprove that customers are satisfied. The performance measures that will clearly lead to such
a conclusion should be selected.
2.Do Phase: The organization collects data in this phase as per approved procedures on a pilot
basis. The procedure will address the following:
*.What will be measured?
*Who will measure?
*When it will be measured?
* How the detailed instruction for measuring?
For instance, we decide to measure customer satisfaction based on feedback forms given to the
customers. Therefore we give feedback forms to select customers and ask them to evalueate our
product or service based on their experience.
3.Check Phase: The feedback obtained from customers through feedback form is compared with
feed back obtained orally thorough telephone. An analysis has to be made validate the
methodology adopted.
4.Act Phase: If the results confirm the reality then the measures can be confirmed during the act
phase. If the feedback obtained thorough forms more or less indicated the perceived quality by
customers, then we confirm the procedure and adopt it for organization wide application.
Measurement Strategy: The quality council is responsible for formulating strategy for
measuring. The measures should be planned after thorough analysis. For each measures the
following questions should be answered.
1.What is the purpose of measuring?
2.How will the measurement result be used?
3.Is it important in determining the acceptance of the process or product?
Prepared by
Dr. S.MARIA ANTONYRAJ
Assistant Professor
General Engineering Department
St. Joseph College of Engineering Technology
Dar-es-salaam
Tanzania(East Africa)
*****
The objective of process control is to control the quality of the processes and ensure that the deliverables
are produced as planned.The process characteristics can be measured, analused , using statistical tools
and controlled. The aim of statistics based process control is to produce products and services with
quality consistently.
Application of statistical process control and quality control tools, which are known as statistical process
control or 7 quality control tools, are therefore very important in the total quality anagement journey.
PROCESS CONTROL: The objective of process control is to produce the delieverables meeting the
specifications by closely monitoring the processes. Each process will have specification as to meet the
end product quality standards. This requires measurement or esmainations during the execution of
tasks in the process.
The seven quality control toosl are very useful for ensuring process quality and thereby end product
quality.
The Seven Basic Tools of Quality is a designation given to a fixed set of graphical techniques identified
as being most helpful in troubleshooting issues related to quality. They are called basic because they are
suitable for people with little formal training in statistics and because they can be used to solve the vast
majority of quality-related issues.[2]
The Seven Basic Tools stand in contrast to more advanced statistical methods such as survey
sampling, acceptance sampling, statistical hypothesis testing, design of experiments, multivariate
analysis, and various methods developed in the field of operations research.
The Project Management Institute references the Seven Basic Tools in A Guide to the Project
Management Body of Knowledge as an example of a set of general tools useful for planning or controlling
project quality.
Tool 1: Process flow chart: A process flowchart is a diagrammatic view of the various steps in sequential order
that form an overall process in an organization.
Flow chart are used in the quality management for depicting the processes in an easily understandable form.
Every organsiaiton has a number of processes each process with a number of sub-processes with clearly
defined inputs and ouputs.The processes involve men, material, machine methods and specifications all used
for providing a service or manufacturing a product.
Steps involved for a making a process flow chart: The various steps involved in formulating a process flow
shcart are given below.
3. Draw the diagram palcing the process stpes in boxes in the order of their sequence and link each other by
arrows
The symbols used for drawing the process flow chart are given.
Flow chart
Before looking at the features of the tool, Newtons law of motion may be recalled. According to Newtons
law, there can be no effect without casue. If the quality (effect) is bad, it is due to many causes both
known and unknown. Casuse and effect diagram helps the user to understand and list out all possible
causes and effect or a desired effect.
The objective of the diagram is to findout ways to reduce the cycle time. While there are many
main causes is employee improvement.
Cause-and-effect diagramefore
Tool 3: Check Sheet: Quality improvement is an information intensive activity. It is necessary to have correct
information about the problems and their causes for enabling quality improvement. Check sheets are a
systematic way of recording data. It is also called a tally sheet. It can be used by even a shop floor level
operator very easily. It is quite suitable for on-line data collection and getting a quick review of the process.
Check sheet
Tool 4 :Scatter diagram: It helps in analyzing the relationship between two variables. For instance, the
relationship between absenteeism and errors committed in a manufacturing or service or administrative
organization can be plotted in a scatter in a scatter diagram. In the X-axis, we plot the variable and in the Y-
axis, the affect of the variable. Such charts can be used for any real life situation.
.
Tool 5 :Pareto chart:Vilfredo pareto, a 19th century Italian economist, observed that a large share of
wealth was owned by relatively few people, a mal distribution of wealth. Juran the father of quality
Guru, defined pareto principle in the year 1950 in a similar manner.
Pareto charts help identify the problems in the organization that cause the greatest loss of profit. The
pareto chart is also a two-dimensional picture and has two axes X and Y. In the Xaxis we plot different
categories of defects and in the axis their % of the total.
A pareto diagram is constructed using the data is as given below:
Pareto chart
Tool 6: Histogram: Histograms are powerful tools for elementary analysis of data that contains variations.
Statistics is concerned with finforatmation about phenomena that vary. Machined parts, whatever may be the
superiority of the machinery,operator, materials etc will have variations. There will always be variations.
Run chart
Tool 7 Control Chart: Control chart is aimed at monitoring the quality of the process continouly. Walter A
Shewhart proposed this tool in 1924 to identify the common cuase and special cause variations
FUNDAMENTALS OF STATISTICS
Statistics has been defined as the collection, organization, analysis, interpretation and presentation of
data. It is a tool to analyse complex problems and arrive at a conclusion with a high problebility of
accuracy. It is a special discipline of mathematics to provide logical analysis and decision making ability
with sample data.
Statistics is a useful technique in quality control and process control. For instance, A factory may
prodcuicng one million pieces of product per shift. It would not be viable to inspect all one the one
million pieces. On the contrary , fewer examples can be drawn at regular intervals sy onece in an hour
of production and these pieces can be thoroughly inspected and based on the result an interpretation
about the quality of the one million pieces can be made statistically.
Statistic: A numerical data measurement taken from a sample that may be sused to make intereference
about a population. For example, if we want to findout the milk consumption in a city, say Dar-es-
salaam, the measurement of millk consumption in all the households in dar-e-salaam are called
population. This can be estimated or inferred by measuring consumtption in say households. This is
numerical data measurement taken from a sample of 1000 households. This is used to make an
inference about a population, ie., milk consumption in the city of Dar-es-Salaam. Thus, statistic is used
to make in inference about population.
Parameter: The true population value, often unknown, estimated by a statistic. The daily consumption
of milk in Dar-es-salaam is unknown. That is the true population value. It may be difficult and expensive
to measure it direcly. Hence, we dont collect data from a sample households and estimate the
population value. Therefore, parameter refers to true population value not measured directly, but
estimated through statstic.
Measure of Central Tendency: We would like to know the central tendency of the values, ie the central
value of the collection of data. The measure of central tendency are
Mean(Arithmetic): The average of a sample is obtained by dividing the sum of values by the number of
readings.
+ + +
=
Median: It is the value, which divides a series of reading arranged in order of magnitude of their values
so that an equal number of centre or median value.
Mode: The mode is the most frequently occurring data in the collection.
Measures of dispersion: Another paratmert to caharcateise a set of data is spred or dispersion. This
measures of dispersion are
Range: Range is the simplest measure of dispersion, but used in many application such as control
charts. Range is the difference between the leargest value and smallest value in the given data.
Standard deviation: The standard deviation of a poplation ( ) is a measure of the spread of the values
of a lot. If it is computed for samples drawn form a lot, then standard deviation for the smaple is called
sample standard devaiton. Usually denoted by S.
Characteristics of normal distribution curve: When we measure characteristic of a sample and plot
frequency distribution. We get histogram. When we plot the measured values of the population we
get a smooth curve. The population mean is and the population standard deviation is .
2.68.26% of all value is the distribution will occur between 1 over the mean value.
5. The curve never touches the X-axis . The curve extends between + .
This means the job of prediction of quality of a manufactured product a lot easier. If mean () and
standard deviation ( ) are computed then % of values between any two values can be easily calculated.
-3 -2 -1 1 2 3
CONTROL CHARTS
According to Walter A.Shewhart, A phenomenon will besaid to tbe controlled when, through the use
of past experience , we can predict, at least within limits, how the phenomenon may be expected to
vary in future. Deming and others used these techniques during world war II and later for improving
quality in japan and other countries. These techniques are now used in every organization including
software industries.
As we know, the control chart is a plot of process performance with time. This can be used to analyse
two types of data namely.
By Variables
By Attributes
By Variables: The variable data are also known as measurement data. The measurement data will vary
continuously. For instance, a furnace temperacture can vary from 900 and 950 in a continuous scale.
Some of the measurements that can be classified as measurement data are
Voltage, current, ohms, mass, length, Torque, effieicnecy , speed, light, intensity, elapsed time.
By Attributes: Any counting can occur in whole numbers. Number of defects in a software, the number
of parts/products, rejected the number of days an employee was absent etc, are called attributes. Thus,
the attributes are whole numbers or discrete numbers. A control chart can be plotted for studying the
performance of an item either by attributes or variables. In the former case, it is called control chart by
attribute and in the later is a control chart by variables.
III
3 ------------------------------------------------------II
2 --------------------------- I
1 ---------------------------
-1 ----------------------------
-2 --------------------------- I
-3 -------------------------------------------------II
Time
Zone II is between 2
We will study the capability of the process, which has variations only due to common cuasues. The
process capability indices are deduced to find a relationship between variations due to common causes
and tolerance.
Recall the areas under the normal curve. We know that the area under the curve between 2 is
95.45%. This means 4.55% of the curve is outside this total 4 limits. If the tolerance of the process is
equal to 2 ,then 4.55 of the products will be defective. If the tolerance is equal to 3 , then 0.27%
of the products will be defective. The tolerance limits are actually set by customer and what is under
the manufactuere s control is the process performance and satisfied control limits.
Cp
Where
Cp = control process
=R/d2
Cp less than 1: This mean that normal curve extends beyond 3 limits (UCL and LCL). Therefore, the
process is incapable. When Cp greater than 1, it becomes increasingly capable, provided the grand
average is maintained at (USL +LSL)/2.
Cpk: Cp can be applied only when the process is correctly centered about the mid specification since it
takes into account the precision with the total tolerance.
Cpk takes into account both the degree of random variations and accuracy. This is the most popular
process capability index.
When Cpk less than =1, the variation and centering may cuase infringing into one of the tolerance
limits and hence process not capable. If the process means coincides with mid specifications, then both
Cpk and Cp will give the same value.
Cpk gives additional information about the centering. Therefore, it is also called process performance
index. Hence, increasing value of Cpk means that the process is increasingly becoming capable.
World war II gave a new thrust to quality control and statistic process control. During the 1980s,
the lean manufacturing and JIT of Japanese companies gave a threat to Americancompanies. TQM was
born in America to overcome the Japanese competiton. In the 1990s, ISO9000 standards created a new
wave of quality. Thereafter, Motorola in order to give a sharper foucs to TQM embarked on six sigma.
Thus, SIX Sigma is very much in the ongoing tradition of quality control. However, dramatic process
improvement in the goal of six sigma. Some believe that motorolo gave the name six sigma to their
special TQM initiative.
Six sigma is an innovative approach to continous process imporvemnt and a totoa quality
management.
Six sigma can be defined as, a business process that allows organizations to drastically improve their
bottom line by designing and monitoring everyday business activities in ways that minimize waste and
resources while increasing customer satisfaction. Six sigma is a statistical technique.
Sis sigma is a disciplined process, which helps the companies to focus on developing and
deliverying nearly perfects products and services by avoiding variations in the process. Six sigma calls
extremely rigorous data collection and statistical analysis to find sources of errors and find out the ways
to eliminate them.
DMAIC methodology
Step 1:Define: This the first phse of the process improvementeffforts. Dring theis phase, the sig sigma
project is defined. Definition of project requires that information pertaining to the customer requrient is
avalbel. Therefore, it necessitates identifying the customers both (internal and external) and their
crtical to quality isues. Crtical to quality refers to the product or service characteristics which are
defined by the customer.
Step 2: Measure: The team identifies the key inernal process that influence CTQs and measures the
defects currently generated relative to those processes. The appropriate measures for the process have
to be identified. The measures have to be defined unambiguously. Aftethat, to identify the target
performance for the process as deduced from the customer requirements. Measure current
performance and identify the gaps.
Step 3: Analyze: The team discovers the causes for defects. They identify the key variables which cause
the defects or which are most likely to cause or create a process variation. The cause and effect
diagram in this case helps us to under stand the following:
Noise factors (N) While efforts are to be made to reduce the noise, these factors cannot be
eliminated.
Hand soldering
Skill of operator
Bit shape
Purgation of soldering
Experimental factors(X)- These factors can be modified to improve the response . The response or the
quality of soldering is marked Y.
Step 4 Improve: The team identifies maximum permissible ranges of the key variables and propses a
system for measuring deviations of the variables. The process performance has to be monitored and
measured. If it is satisfactory , then it can be institutionalized.
Step 5 Control: In this phase, tools are put in place to ensure that they key variables remain within the
maximum permissible ranges continuously.
Define
Method
ology
Analyze
DMADV: The second model for process improvement is DMADV. It is used for improving the existing
process. DMADV stands for Define, Measure, Analyze , Design and Verify. Six sigma is applied to a new
design by using DMADV.
Define: This is the first phase is similar to DMAIC. Six sigma team gets a character for the new design.
Measure: During this step, the organization may need to use quality function deployment or house of
quality.
Analyze : In this phase, the team has six sigma design the concept or top level design for the new
project.
Detailed Design: At this stage the detailed design of the product or process is carried out. Detailed
design involves identifying the finer details and identifying all the required steps.
Verify: The last step in DMADV is verification. At this stage, the functionality of the process or product is
verified. Full-scale verification of the design is carried out. Lessons learnt are documented and the
product is transferred to regular production.
Six sigma implementation varies from organization to organization. In a larger organization, six sigma is
implemented in three levels as given below:
This also indicates the hierarchy of activities in the organsiation. Six sigma should be implemented in a
seemless manner at all the three levels. Of course, a senior level management person will carry out the
business level improvements. To achieve six sigma, athe business elvel it may take a few years. At the
operations level it may take about 12-18 months and the process level, the Black belts may take about
6-8 weeks to complete the project. There will be a number of projects at process level, but fewer
projects at the higher levels. Therefore, a clear strategy for implementation has to be evolved by the
management.
Six sigma means controlling defects to a very low level, so that the waste is the least and profits are
more. We dont adjust specification limits, but improve the process so that statistical control limits
shrink, or in other words, we reduce variations in the process.
The figure indicates the normal curve of a process with 3 sigma are 6 sigma marked. One can expect
total defects of 0.002 ppm, compare with 2700ppm when we achieve the traditional 3 sigma quality
level. This happens when the mean lies exactly at (USL+LSL)/2. There could be a shift of the mean in the
process due to various reasons. Assume that there is a shift by 1.5 sigma to one side. The number of
defects will go up in such a process. In this case, If a process performance is six sigma, thenactual effect
will be equal to 4.5 sigma. To compensate for the inevitable consequences assoiciated with process
centering errors, the distribution mean is offset by 1.5 standard deviations. This adjustment provides a
more realistic idea of what the process capability will be over repeated cycles of operation of the
process.
Restlessness and discontent are the first necessities of progress- Thomas A. Edison
The Japanese developed seven more tools in their second wave of quality. These tools are called the
New seven management tools. The tools are useful for process, product and system improvement. The
tools can be used by the middle and top management of organizations to find causes of problems and
solutions to the same. In comparison with seven quality control tools, the new seven tools are
qualitative in nature.
In this chapter, we will look at the following new seven management tools.
1. Affinity Diagram
2. Relations diagram
3. Tree diagram
4. Matrix diagram
7.Arrow diagram
1.Affinity diagram:The affinity diagram also known as the KJ method, get the name from its inventor
Kawakita Jiro. This is essential a brainstorming method. It is based on group work. It is a very simple
but powerful technique for grouping and understanding information, wich gathers large amount of data
like opinions, ideas, issues etc.
The affinity diagram can be used in a working environment when participants are expected to work
together in identifying, grouping and discussing issues. This diagram can also be used when large
amount of information is available.
2.Relations Diagram(RD): Relations diagram is also known as inter-relationship diagram. It is a tool for
finding soluations to problems that have a complex casual relationsip. It is a creative process, which
allows for multi-directional rather than linear thinking. It is a graphical representation of all the factors
in a complicated problem, system or situation.
3.Tree Diagram: It is also known as systematic diagram. It is a technique for mapping out full range of
paths and tasks that need to be done to achieve a primary goal and related sub goals. It also helps to
arrive at methods by which to achieve the resutsl.
Low
Medium
High
Low
Medium
Low
Medium
High
4.Matrix Diagram: It is also called quality functions deployment. A matrix diagram is a tool that is used
to systematically organize information that must be compared on a variety of characteristics in order to
make a comparison, selction or choice.
A matrix diagram consists of a number of colums and rows whose intersection are checked to find the
nature and strength of the problems which help us to arrive at key ideas and analyse the relationship or
its absenxe at the intersection. The intersection points are a so called idea conception points.
The L
R1 R2 R3 R4
L1 1 2 3 4
L3 1 2 3 4
L3 1 2 3 4
L4 1 2 3 4
6.Process decision programme chart: It is a very useful and powerful method to voer come an
unfamiliar problem or a goal. It is a simple graphical tool, which can be used to mitigase risk in virtually
any undertaking. It helps to determine which proceeses to use to obtain desired results by evaluating
the progress of events and the variety of conceivable outcomes. It establishes an implementation plan
for management by objectives(MBO).
7.Arrow Diagram: It is also called activity network diagram of project evaluation and review technique or
criticial path method. It uses a network representation to show the step necessary to implement a
plan. It is a network technique using nodes for events and aroros for activities for project planning,
scheduling and monitoring. It helps implementing plans for new product development and its follow up.
*****
UNIT IV BUSINESS PROCESS BENCHMARKING
The importance of benchmarking for continuous process improvement and TQM. Benchmarking
will help in identifying the current level or performance of the processes in the organization and
bringing them up to the level of the best processes. Benchmarking can be used to compare
product features also. It is one of the tools of TQM.
1.Becnhmarking is carried out to bring out clearly and objectively the real status with regard to
the performance of the organization as well as the processes.
2. After ascertaining the real position, the processes can be improved to the level of the best, so
that the organization performs better than ever before.
4.With time, competition will also improve their performance. Hence, benchmarking has to be
carried out periodically .So as to maintaining leadership position.
BENCHMARKING PROCESS
Benchmarking involves a number of steps, which are to be carried out systematically. The steps
are illustratioed in Fig :
1. Selection of process improvement Team: The management should select a cross functional
team and persons working in the process and constitute a process improvement team for
benchmarking. If the team consists of only outsiders, then it may be difficult to change over to
the new system later on due to non-involvement of the process owners. It is therefore, essential
to involve those engaged in the process in the benchmarking team.
The benchmarking team after its constitution should prepare a project description comprising of
the following:
i. Purpose
iv. Scope
The team after discussing with various employees in the organization, process owners, external
suppliers, customers and other internal experts will prepare a list of benchmarking partners. For
this purpose, they should also carry out an extensive study of public domain information. If
benchmarking databases are available, they could make use of them.
4. Adopt a suitable benchmark process model
A number of model are available for carrying out benchmarking. For instance, Motorola has a
five step model, Westinghouse a seven-step model and Xerox a 10-step model. An organization
should adopt a suitable model.
ACT PLAN
CHECK DO
Plan: Get sponsorship for the management and process owners, Document the process flow,
Measure process performance and record, Plan visits to partner organization
Do: Study partners process, Know partners process performance, Discuss modification to the
process,Carryout brain storming, Evolve modified process, convince process owners,tke
approval or of QC for pilot implementation
Check: Implement on pilot basis, Train the process owners, Carry out improved process
measurements, Fine tune the process based on results, and Finalize the report.
Act: -Submit the report to QC, After approval standardize the process, Carry out
measurements.
Carryout Benchmarking: This is the easiest method of carrying out benchmarking. In the
absence of such a database and non availability of adequate information about the performance
of processes in other industries, the team has to locate a benchmarking partner for carrying out
this activity. If an organization engaged in the same type of manufacturing or service activity is
not abialable for bencmarking , the team has to look for inudstires or service organization
having similar process functions.
Lack of commitment
Quality function Deployment(QFD) was developed to bring this personal interface to modern
industry. In modern industry, many suppliers might not know who of the customer with design,
engineering, production and service functions in the supplier organization.
Productions Controls
The above figure illustrates American Supplier Institutes (ASI) four phase approach, devised on
the basis of QFD. The QFD team uses customer requirements to find product characteristics.
This in turn is converted into component or part characteristics. Then a process is designed to
make the part. The process characteristics decide the characteristics of manufacturing, which
will deliver products meeting customer requriemnts. QFD improves the entire product life
cycle. This technique ensure that the organization solicits both the stated and implied needs of
the customer.
One of the achievements of Toyota was reduction in product development cost by 61%, a
decrease is the development cycle time by one third and near elimination of rust related warranty
problems, all due to QFD.
Yoji Akaos definition of QFD is, a method for developing a design quality aimed at satisfying
the consumer and then translating the consumers demands into design targets and major QA
points to be used throughout the production phase.
Benefits of QFD
HOUSE OF QUALITY
The primary tool for QFD is the house of quality. It is also known as product planning matrix or
matrix diagram. House of quality is an excellent quality planning tool.
2.HOW- After WHAT is known, we have to move to the next level of details by identifying one
or more HOWs for each WHAT. These HOWs are known as substitute quality characteristics or
product specifications to satisfy the WHATs.
3.Relationship between WHAT and HOW- These relationships are the third key element of the
House of quality and are depicted by placing the symbols used at the intersections of WHATs
and HOWs. The strength of relationship are
4. HOW MUCH- These are the measurement for the HOWs. They represent how much good
one has to be to satisfy the customer and not necessarily the current performance levels. This has
to be based on benchmarking.
5.Correlation matrix between each HOW This is a triangular table attached to the HOWS. The
purpose of this is to identify the areas that require either trade-off decisions are research and
development efforts. They type of relationship are:
8.The safety and government regulatory requirements- to design safe products conforming to the
governments regulatory specifications.
9.The past history, if any- to prevent the recurrence of previous failures. The House of Quality
matrix allows for entries of customer complaints vertically opposite customer want. The service
complaint histories are kept in mind while deciding HOW and HOW MUCH.
Interrelationship
betweentechnci
al descriptors
Ttehnical
descriptors
Prioritizrred customer
requirments
FEMA is a before the event action. It requires a team effort to easily and inexpensively
alleviate changes in design and production.
FMEA is defined as , a systematic group of activities intended to : (a) Recognize and evaluate
the potential failure of a product/ process and the effects of that failure, (b) Identify actions that
could eliminate or reduce the chance of the occurrence of potential failure.
Purposes of FMEA
1.Enables structured analysis of the design for identifying potential failure modes.
3.Develop product or process requirements that minimize the likelihood of those failures.
4.Ensure that any failure that could occur will not injure or seriously impact the user.
5.Helps in preparing for unavoidable failures and thus increase the competitiveness for
maintenance of the product.
Benefits of FMEA
Design (Product) FMEA or process FMEA can provide the following benefits:
1.Systematic review of component failure modes ensures minimum damage to the product when
failed.
2.Any failures impact on other items of the product or process can be determined.
3.Detemination of effects on the product as a whole due to the parts that failed is possible.
4.Enables establishing test programme requirements to determine failure mode and rate data that
are not available from other sources.
5.Establsihg test programme to validate the empirical reliability predictions.
7.Determination of adopting high failure rate components of a product or process for high-
reliability components.
8.It helps t uncover oversights, misjudgments and errors that might have cropped up in
designing the product or process.
STAGES OF FEMA
1.Specifying possibilities
i.Functions
iv. Effects
v. Detections/Prevention
i. Probability of cause
ii. Severity of effect
i. Prioritizing work
4.Revaluation of Risk
2.It focuses on potential failure modes associated with the proposed functions of a concept
proposal.
3.This type of FMEA includes the interaction of multiple systems and interaction between the
elements of a system at the concept stages.
1.The Design FMEA is used to analyze products before they are released to production.
3.Design FMEAs are normally done at three levels system, subsystem, and component levels
1.The Process FMEA is normally used to analyze manufacturing and assembly processes at the
system, subsystem or component levels.
2.This type of FMEA focuses on potential failure modes of the process that are caused by
manufacturing or assembly process deficiencies.
3.Although Design FMEAs are used to analyze medical equipment, Process FMEA is commonly
used in regard to patient care, especially
associated with certain types of surgery.
4.This approach is also commonly used in many industries to access certain processes involved
in providing customer care.
1.Nominal-the-best: This loss function is applicable to those parameters, which have a central
value. The target isnot necessarily, the average process performance, but it is the choice of the
customers. It is that value with wich majority of customers will be satisfided.
2.Smaller-the-better: This is useful, for instance, in many day-to-day applications such as:
Waiting time for a bus, and waiting time in a restaurant etc. Here the target will be ideally zero.
L (y)
3.Higher the better: While nominal the best is applicable to product characteristics that have a
central value and tolerances, in the case, where ideal target is zero such as delay at various
places, smaller the better was most appropriate. Higher the better is apt when more energy or
more power is more suitable or there is no upper tolerance limit. This may be applicable to
power generating stations, power generated by an engine etc.
L(y)
This above three types of loss functions will serve most of the applications.
Objectives of TPM:
iv. Achieve 100% success in delivering the goods as required by the customer.
v. Increase the suggestions by 3 times, develop multi-skilled and flexible workers.
Total Productive Maintenance is a modern maintenance strategy aimed at more profits was also
evolved in japan to take care of this important aspect of business. Increased productivity is the
hallmark of TPM and hence TPM is apart of TQM.FMEA IS failure Mode and Effects
Analysis. It is a methodology for analyzing potential reliability problems early in the
development cycle where it is easier to take actions to overcome these issues, thereby enhancing
reliability through design. It is a bottom up approach.
******
Prepared by
Assistant professor
Dar-es-salaam, Tanzania.
Unit 5 TQM QUALITY SYSTEMS
ISO
ISO is the abbreviation for international organization for Standardization. Its head-quatered in
Geneva. This is a world standards body, in which most countires are members. ISO engaged in
formulating standard specifications in a variety of disciplines such as quality management,
information technology, metrology, etc.
After World War II, it was found necessary that there should be specifications or requirements
for the quality management systems in the organizations to ensure production of products
meeting the requrients consistently. ISO 9000:2000 standard defines management systems as
Set of interrelated and interacting elements to establish policy and ojectives and to achieve
those objectives.
The first standard on this subject was issued by the US Military and Known as MIL-Q 9895.
The speicficaitons for the quality system gained importance by the year 1987 when the
International Organisation for Standardization released the first set of ISO9000 series of
standards.
ISO 9001 registration provides confidence to customers and potential customers that an
adequate quality system is in place and that quality and service requirements willlikely be
met. An ISO auditor will gather preliminary information on the company to be audited and
then determine if the company is actually doing what it has documented.
3.The customers get the benefit directly because they improve products and services.
4.The employees also get trained in the latest methodology for managing the organization,
which will directly benefit the organization.
5. The suppliers get to know the exact customer requirements on account of ISO9000
certification.
6.The organization benefits because every contract has to be reviewd before acceptance . This
reduces the waste.
7.Since ISO 9000 is targeted towards practicing TQM, the organization becomes healthy and
prosperous in the long run.
1.Demonstrate ability to consistently provide product that meets customer and applicable
regulatory requirements
The standard has also defined supply chain as given in Fig. 5.1
1.Quality Management: Quality management is the means of implementing and carrying out
quality policy. They perform goal planning and manage quality control and quality assurance
activities. Quality management is responsible for seeing that all quality goals and objectives are
implemented and that corrective actions have been achieved. They periodically review the
quality system to ensure effectiveness and to identify and review any deficiencies.
2.Quality Control: The term quality control describes a variety of activities. It encompasses all
techniques and activities of an organization that continuously monitor and improve the
conformance of products, processes or services to specifications. Quality control may also
include the review of processes and specifications and make recommendations for their
improvement. Quality control aims to eliminate causes of unsatisfactory performance by
identifying and helping to eliminate or at least narrow the sources of variation. Quality control
has the same meaning as variation control of product characteristics.
The objective of a quality control program is to define a system in which products meet design
requirements and checks and feedback for corrective actions and process improvements. Quality
control activities should also include the selecting and rating of suppliers to ensure that
purchased products meet quality requirements.
3.Quality Assurance: The term quality assurance describes all the planned and systematic
actions necessary to assure that a product or service will satisfy the specified requirements.
Usually this takes the form of an independent final inspection. The distinction between quality
control and quality assurance is stated in an ANSI/ASQ standard: Quality control has to do with
making quality what it should be, and quality assurance has to do with making sure quality is
what it should be. The quality assurance function should represent the customer and be
independent of the quality control function, which is an integral part of the manufacturing
operation.
The International Organization for Standardization (ISO) was founded in 1946 to develop a
common set of manufacturing, trade, and communications standards. It is based
in Geneva, Switzerland. ISO promotes standards to facilitate international trade. The American
Standards Institute (ANSI) is the United States representative to ISO. ISO has a full time staff
plus technical committees, subcommittees, working groups and ad hoc groups. ISO receives
input from governments, industry and other interested parties. ISO develops and promotes but
does not implement or enforce international standards.
Quality systems or quality programs in one form or another have existed since the beginning of
factories. Companies developed and implemented a quality system that worked for them.
Although there was an abundance of literature on quality system elements, quality tools and
statistical techniques, a standard did not exist until 1987. In that year, an ISO technical
committee developed and published the ISO 9000 series of standards that define the minimum
requirements for an adequate quality system. The ISO 9000 series standards were revised in
1994 and 2000.
Quality Managment system: The ISO9000 standards brings out the requirements for the quality
management system. The requriemnts are convenyed through the various elements form clause
4 to 8.
ISO 9001:2000
A brief outline of the management system requirements per ISO 9001:2000 are listed below.
The organization shall establish, document, implement and maintain a quality management
system and continually improve its effectiveness. The quality management system
documentation shall include documented statements of a quality policy and quality
objectives, a quality manual and records.
Documents required by the quality management system shall be controlled. Records are a
special type of document and shall be established and maintained to provide evidence of
conformity to requirements and of the effective operation of the quality management system.
Records shall remain legible, readily identifiable and retrievable.
The organization shall determine and provide the resources needed to implement and
maintain the quality management system and continually improve its effectiveness, and to
enhance customer satisfaction by meeting customer requirements. The necessary competence
for personnel performing work affecting product quality shall be determined and training
provided or other actions taken to satisfy these needs.
The organization shall plan and develop the processes needed for product realization. In
planning product realization, quality objectives and requirements for the product shall be
determined. Where product requirements are changed, the organization shall ensure that
relevant documents are amended and that relevant personnel are made aware of the changed
requirements. The design and development of product shall be controlled. The organization
shall determine the design and development stages, the review, verification and validation
that are appropriate to each stage, and the responsibilities and authorities involved.
Systematic reviews of design and development shall be performed per planned arrangements.
The organization shall ensure that purchased product conforms to specified purchasing
requirements. Suppliers shall be evaluated and selected based on their ability to supply
product in accordance with the organization's requirements. Purchasing information shall
describe the product to be purchased.
The organization shall plan and implement the monitoring, measurement, analysis and
improvement processes needed to demonstrate conformity of the product, to ensure
conformity of the quality management system, and to continually improve the effectiveness
of the quality management system. The organization shall conduct internal audits at planned
intervals to determine whether the quality management system conforms to the planned
arrangements.
The management responsible for the area being audited shall ensure that actions are taken
without undue delay to eliminate detected nonconformities and their causes. Follow-up
activities shall include the verification of the actions taken and the reporting of verification
results. Suitable methods for monitoring and, where applicable, measurement of the quality
management system processes shall be applied. These methods shall demonstrate the ability
of the processes to achieve planned results. When planned results are not achieved, corrective
action shall be taken to ensure conformity of the product. Product characteristics shall be
monitored and measured to verify that product requirements have been met. Product which
does not conform to product requirements is to be identified and controlled to prevent its
unintended use or delivery. The controls and related responsibilities and authorities for
dealing with nonconforming product shall be defined in a documented procedure.
Appropriate data shall be determined and collected to demonstrate the suitability and
effectiveness of the quality management system and to evaluate where continual
improvement of the quality management system can be made. The organization shall
continually improve the effectiveness of the quality management system through the use of
the quality policy, quality objectives, audit results, analysis of data, corrective and preventive
actions and management review.
2.Quality manaual
4.Documents needed by the organization to ensure the effective planning, operation and
control of its processes
5.Records.
Documentation Style: The documents should be prepared with a clear focus on the
processes. Every document should use a stanadard template. Some of the contents, which
add value to the documents, are:
vii.records to be generated
Companies use first-party audits to evaluate their own performance. Second-party audits are
conducted by a customer on a supplier. Audits conducted by completely separate
companies, with no personal stake in the audited company, are labeled third- party audits.
Auditors in a third-party audit are usually registrars that audit to international standards such
as the ISO 9000 series.
A customer will usually combine a quality system audit with a product-specific audit. Third-
party audits are usually reviews of the management and quality system and not product
specific.
Quality auditing
Definition of a quality audit is given in ISO 9000 standard and reproduced below:
A systematic and independent examination to determine whether quality activities and related
results comply with planned arrangements and whether these planned arrangements are
implemented effectively and are suitable to achieve objectives.
In short, the auditors have to examine whether the quality system has been established as per
the requirements and is effective.
ISO
ISO is the abbreviation for International organsiation for standardization, head quartered in
Geneva.This is a world standards body, in which most countries are members. ISO is engaged
in formulating standard specifications in a variety of disciplines such as quality management,
information technology, metrology etc.
ISO has contributed to the improvement of quality in all spheres of life through the release of
ISO9000 standards.Organisations go for ISO 9000 certification because fo the following
advantages it offers:
3.The customers get the benefit directly because they improve products and services.
4.The employees also get trained in the latest methodlogy for managing the organization, which
will directly benefit the organsiaiton.
5.Since ISO 9000 is targeted towards practicing TQM, the organization becomes healthy and
prosperous in the long run.
Tyepes of documentation
The organization has to identify the set of docuements required to esatablsih and implekent
its quality management sysem. There are five types of docuements as given below:
1.Quality policy and quality objectives
2.Quality manual
3.Documented procedures as required by the standards ISO 9001
4.Documents needed by the organization to ensure the effective planning, operation and
control of its process and
5.Records.
The main thrust for its development came as a result of the Rio Summit on the Environment held
in 1992.
ISO 14001 is the corner stone standard of the ISO 14000 series. It specifies a framework of
control for an Environmental Management System against which an organization can be certified
by a third party.
Of all these, ISO14001 is not only the most well known, but is the only ISO 14000 standard
against which it is currently possible to be certified by an external certification authority.
The benefits of acquiring ISO certification go beyond the satisfaction of doing a good
deed. Adhering to the standard may result in better conformance to environmental
regulations, greater marketability, better use of resources, higher quality goods and
services, increased levels of safety, improved image and increased profits.
The environmental awareness and the documentation that are required by the ISO 14000
standards assist a company in conforming to environmental regulations. This means that
a company, by diligently adhering to the standard, is less likely to violate envir onmental
regulations and is always ready for inspection by a regulatory agency. In addition, the
certification and documentation may aid a company in acquiring capital, in defending
itself during environmental litigation and in receiving insurance or per mits.
A wider market for a company's goods and services may result from certification. Many
corporations and governments will be looking for suppliers that are ISO 14000 certified
in order to maintain their own certification and environment-friendly image. Al though
the European Union claims that ISO 9000 certification is not required to do business in
Europe, that was the message received by many non-European firms and lead to the
amazing success of that standard. If ISO 14000 is similarly successful, the co mpanies
who are already ISO 14000 certified will have an advantage in global markets. Also,
producers of consumer goods may find that many consumers not only try to purchase
goods from environment-friendly companies, but will spend a little more if they feel they
are helping the environment. In order to reap this benefit, a company must make their
environmental efforts known through advertising and labeling.
The process analyses that go along with ISO 14000 certification may result in
streamlining processes and more efficient use of resources and raw materials and
subsequently reduce a company's costs. Finding ways to capture emissions or recycle the
product s may, in the long run, reduce the amount of raw materials and utilities used.
Reducing the amount of potentially dangerous substances in an end product may result in
less use of dangerous chemicals in a plant. This leads to a safer internal environment for
employees and the possibility of reduced insurance premiums. Improved employee
morale may result when employees feel that the workplace is safer and they are
contributing to the environmental effort.
Critics of the ISO 9000 series complain that the certification was expensive and ISO
14000 will prove to be no less expensive. Additional costs occur due to the administrative
costs, increased variable and fixed operating costs. A possible non-tangible c ost is the
negative publicity that could occur if undesirable or hazardous situations are brought to
light during the certification attempt.
Companies that have sought ISO 9000 certification have complained that the extensive
documentation introduces more bureaucracy into a company. Some say that ISO 14000
will build on top of ISO 9000 registration, but others point out that the ISO 14000 doc
umentation requirements will only compound the already burdensome task and that the
extra administrative costs will reduce profit margin. ISO 14000 requires not only
additional personnel to take care of the documentation, but requires knowledgeable perso
nnel with expertise in the technical processes of an organization and the effect they have
on the environment
Investment in fixed capital may rise if a company must implement pollution reduction
equipment. Other costs may rise if more environmentally friendly materials and processes
lead to higher production costs. If a company passes the increase on to custome rs, it
could result in reducing it's share of the market if competitors do not do the same.
Other issues.
It has been several years since ISO 9000 was published and in that time, some concerns
have come to light regarding international quality standards. These have to do with the
quality of process rather than product, multiple registration schemes, the cost vs. the
benefits of certification, and the business of third party certification.
Implicit behind ISO 14000 and ISO 9000 is the assumption that a quality process will
lead to quality products and a clean environment. However, both the ISO 9000 and the
ISO 14000 standards focus on the management processes behind the product. There is no
guarantee that a quality process will yield a quality product or a better environment.
Additionally, despite the claims that these standards will help to reduce costs, there is no
guarantee that certification in either or both will result in increased profits for a company.
The problem of multiple registration schemes is not limited to the United States. Antonio
Silva Mendes, quality chief of the European Union Directorate-General III has also
voiced concern over multiple registration schemes (Zuckerman, Amy "Stanching the flow
of new quality standards." New Steel. Sep 1996 v12 n9 p82.). Despite this, there is
already a movement underway for the development of international occupational health
and safety standards on top of ISO 9000 and ISO 14000.
The whole question of third party certification does not sit well with many US
companies. Some are complaining that third party assessment does not distinguish
between barely meeting the standard and fully meeting or surpassing it. Others note that
ISO 1 4000 certification does not currently reduce any customer or regulatory
requirements. (However, the EPA is investigating how ISO 14000 standards can be
linked to environmental regulations.) Then there is the question of who certifies the third
party as sessment auditors. Standard certification has become a big business and some
critics are now calling for standardization of the certification process.
Finally, many complain that the ISO standards do not reflect the variety of businesses in
the world. For example, small businesses have difficult time dealing with the expense of
certification and fear that they will not be able to compete internationall y. On the other
extreme, some multinational companies which are highly decentralized and diverse
complain that the standards do not coincide with the realities of the ways these companies
function. Under the ISO 9000 and ISO 14000 standards, multisite r egistration of
subsidiaries is permitted only if there is a common management and central control of
each site. This violates the autonomous and decentralized approach taken by many
multinational companies.
******
Aim high. Go for it. Be disciplined. Believe yourself can achieve your goals. Involve
others. Never give up.
Prepared by
Assistant Professor