TOTAL QUALITY

MANAGEMENT &
COST OF QUALITY

What is Quality?
Quality is fitness for use
(Joseph Juran)
Quality is conformance to requirements
(Philip B. Crosby)
Quality of a product or services is its ability to
satisfy the needs and expectations of the
customer
Evolution of Quality Management
Inspection
Quality
Control
Quality
Assurance
TQM
Salvage, sorting, grading, blending, corrective
actions, identify sources of non-conformance
Develop quality manual, process performance
data, self-inspection, product testing, basic
quality planning, use of basic statistics,
paperwork control.
Quality systems development, advanced quality
planning, comprehensive quality manuals, use of
quality costs, involvement of non-production
operations, failure mode and effects analysis, SPC.
Policy deployment, involve supplier & customers,
involve all operations, process management,
performance measurement, teamwork, employee
involvement.
Why care about quality
Increase productivity
Expand market share
Raise customer loyalty
Enhance competitiveness of the firm
At a minimum, serve as a price of entry
Why Quality is so difficult to do?
Quality can only be defined in terms of an
agent (a judge of quality).

One has to translate future needs of the user
into measurable characteristics
Service Industries are
particularly Difficult
Reasons:
High volume of transaction
Immediate consumption
Difficult to measure and control
More labor intensive
High degree of customization required
Image is a quality characteristic
Behavior is a quality characteristic
Quality Gurus
Deming: The father of the quality movement.
Scientific approach to quality
Joseph M. Juran: Quality by design/fitness for
use
Philip B.Crosby: Quality is free
Karou Ishikawa : Participative approach,
Quality circle
Shigeo Shingo : Poka Yoke Mistake proofing
Genichi Taguchi Three Stage Design Process
8
Application of quantitative methods and human
resources to improve all the processes within an
organization and exceed customer needs now
and in the future.
Total Quality Management
What is TQM?
Constant drive
for continuous
improvement
and learning.
Concern for
employee
involvement and
development
Management
by Fact
Result Focus
Passion to deliver
customer value /
excellence
Organisation
response -
ability
Actions not just
words
(implementation)
Process
Management
Partnership
perspective
(internal /
external)
BASIC PRINCIPLES OF TQM
Approach Management Led
Scope Company Wide
Scale Everyone is responsible for Quality
Philosophy Prevention not Detection
Standard Right First Time
Control Cost of Quality
Theme On going Improvement
Elements of Total Quality
Management
Commitment
of
Top
Management
Employee
Involvement
Training
Requirement
Quality
managements
Tools
Quality Management Tools Tools
Highlighting
Quality
Problems

Control
Charts
Identifying
Improvement
Opportunities
Histogram
Check Sheets
Scatter Diagram
Pareto Diagram
Graphs
Analyzing
Problems and
Their Root
cause
Fishbone
Diagram
Cause and
Effect Diagram
with Action card
(CEDAC)


Tools for
Operational
Planning
Tree
Diagram
Matrix
Diagram
Process
decision
program
Chart
Poka Yoka
Arrow
diagram
Tools For
Strategic
Planning
PDCA
Quality
Function
Deployment
(QFD )
Quality Cost

PLAN
CHECK
DO
ACT
The Deming Cycle or PDCA Cycle
Plan a change to the process. Predict the effect
this change will have and plan how the effects
will be measured
Implement the change on a
small scale and measure the
effects
Adopt the change as a
permanent modification to
the process, or abandon it.
Study the results to learn
what effect the change had,
if any.
Cost of Quality
Quality
Cost
Control
Cost
Prevention Appraisal
Failure
Cost
Internal External
Quality Certifications and
Awards
The Deming Prize
The Malcom Baldrige national Quality
Awards
European Quality Award
CII- EXIM Business Excellence award
Rajeev Gandhi National Quality
Award
Quality
Awards
ISO9000 Series
ISO14000 Series
QS9000 Series
TL9000 Series
OHSAS 18001
Quality
Certifications