Professional Documents
Culture Documents
Management
TQM
Managing the entire organization so that it excels in all
dimensions of products & services that are important to
the customer
Philosophical Element
Customer Driven quality
Leadership
Continuous improvement
Employee participation &
development
Quick response
Design quality & prevention
Management by fact
Partnership development
Corporate responsibility & citizenship
Generic Tools
SPC Tools
Process flow charts
Check sheets
Pareto analysis &
histogram
Cause & effect (or fish
bone) diagrams
Run charts
Scatter diagrams
Control charts Quality
function deployment
Pareto Analysis
Pareto was an Italian economist who discovered
a universal relationship between value and
quantity. He used this technique for assessing
uneven distribution of wealth. Pareto analysis
helps in identification of the vital few from the
trivial many at a glance. Pareto diagram is
drawn after data collection for two purposes as
follows:
1. Differentiating
the
major
factors
that
contribute the most to the unsatisfactory
situation, from other trivial factors.
2. Tackling the major factors responsible for any
problem.
The use of Pareto Charts have given rise to the 80-20 rule
which suggests that 80 per cent of an organisations
problems come from 20 per cent of its tasks. A Pareto
Diagram can be constructed using the following steps:
1. Use a checklist or brainstrome to obtain data.
2. Arrange the data in descending order starting from the
largest category to the smallest.
3. Calculate the total.
4. Compute the percentage of the total that each category
represents.
5. Compute the cumulative percentages.
6. Scale the vertical axis for frequency from zero to hundred.
7. From left to right construct a bar for each category with
height indicating the frequency. Start with the largest
category and add them in descending order (combine the
categories containing the fewest items into an other
category and put it on the extreme right as the last bar).
8. Draw a vertical scale on the right and add a percentage (0 to
100 per cent) scale.
9. Plot a cumulative percentage line.
100
Critical few
75
81 %
96 %
100 %
80%
75 %
61 %
Trivial many
50
50%
38 %
Cumulative Customer
Complaints
25
a
Invoicing
Quality
performance
25%
d
e
Personnel
0
Delivery
Pa
Method
People
Wrong
Jobs
assigned
Lack
Training
Manual
Work
Fault in
Price
very high setting
Faulty
material
Material
Price setting
not proper Products not
as per
customers
requirements
Ill maintained
Machines
Performance
Features
Conformance
Reliability
Durability
Service
Response
Aesthetics
Reputation
primary
parts
Design
Development
Procurement
Production
ISO
9003
ISO
9002
ISO 9001
Installation
Servicing
TQM
1. Definitely customer focused.
2. Integral to company strategy.
3. Philosophy, concepts, tools and
techniques focused.
4. Emphasis is on employee
involvement and empowerment.
5. Continuous improvement and TQM is
a never-ending journey.
6. Organization-wide focus on all
departments, functions and levels.
7. Everyone is responsible for quality.
8. Involves process and culture change.
9. Customer satisfaction and economic
cost are TQM two distinguishing
features.
10.TQM is a philosophy where the
approach is behavioral and human.
Benefits of QFD
TQM GURUS
A TQM Guru is an expert thinker who communicates his
thoughts through verbal and written expressions and
thus contributes to the field of TQM. Starting just after
World War II a number of philosophers and thinkers
have made their contributions to the movement of
Total Quality Management. In the summer of 1985
the name Total Quality Management was first
suggested by Nancy Warren, a behavioural scientist in
the US Navy, thereafter, a number of TQM Gurus have
made their significant contributions. Many of the TQM
Gurus are Americans and a very few of them have their
origin in Japan. Some of the major contributors towards
the thought of TQM are:
i. W. Edwards Deming,
ii. Joseph M.Juran,
iii.Philip B.Crosby,
iv.Armand V.Feigenbaum,
v. Bill Conway,
vi.Kauru Ishikawa,
vii.GenichiTaguchi
viii.Shigeo Shingo,
ix.W.G. Ouchi,
x. Vilfredo Peters,
xi.Tom Peters,
xii.S.R.Udpa,
xiii.Stephen Covey, and
xiv.J.S. Oakland.
Venjie D. Menchavez
Quality is free declares Philip Crosby. He continues to believe
that quality means getting it right the first time, rather than
merely laying down acceptable levels of quality. The 14 steps
of quality improvement declared by Crosby are:
Focus
Inspection
Sampling schemes
Quality control
SPC
SQC
QC Teams
Quality Assurance
Quality Engineering
TQC
Self-control
Performance of the job right the first time and every time
CWQC
TQM
Steering Council
HRD
Quality Audits
CONCEPT OF KAIZEN
KAIZEN
Customer
orientation
Kanban
TQM
Quality
improvement
Robotics
Just in
time
Quality Circles
ZeroDefect
Suggestion
schemes T PM
Small Group
Activities
Cooperative
Labour Management
Relation
Productivity
Improvement
COST OF QUALITY
The cost of quality (COQ) is defined as the sum of the
costs of everything that would not have been
necessary if everything else was done right the first
time.
Types of quality costs
The cost of quality (COQ) can be classified into three
major categories as given below:
1. Cost of conformance,
2. Cost of non-conformance,
3. Basic operational costs.
Basic
Operating
Cost (BOC)
Cost of
NonConformance
(CONC)
Cost of
Conformance
(COC)
Heightened
Efficiency
Cost of
Quality
Reduced
Cost of
Qualify
(COQ)
Improved Customer
Satisfaction
Lower
Operating Cost
Quality
BENCH MARKING
If you know your enemy and know yourself, you need
not fear the result of a hundred battles.
According to Kehoe (1996) benchmarking can be
defined as measuring the performance of processes
within
your
organization,
comparing
these
performance levels with the best in class companies
and where deficiencies exist, using the information on
the best practices to improve your organisations own
business processes.
Benefits of Benchmarking
1. Best practices from any industry to be creatively
incorporated into the processes of the benchmarked
function.
2. Identify a technological breakthrough
3. It permits the individuals to broaden their background
and experience.
4. It helps in meeting more effectively the end-user or
customer requirements.
5. It supports in establishing goals (target setting) based on
a concerted view of external conditions.
6. It helps in determining true measures of productivity and
effectiveness.
7. It assists in attaining a competitive position.
8. It helps in becoming aware of and searching for
industrys best practices.
9. Benchmarking allows individuals to see outside the box.
It provides for accelerating change and managing
change.
Pitfalls of Benchmarking
Statistics show that 70 percent of all process
improvement initiatives fail. The most common reasons
of these failures are:
i. Lack
ii. Lack
iii.Lack
iv.Lack
v. Lack
of
of
of
of
of
Obstacles to Benchmarking
The following are the most typical causes and
obstacles
preventing
the
smooth
and
fast
implementation of benchmarking practices:
1. Management not buying into the idea.
2. No clear owner of the programme.
3. Failure to consider customer-requirements.
4. Change of sponsor before completion of the
programme.
5. Programme taking too long and leading to loss of
interest.
6. Not involving right staff in the programme.
7. Team not measuring issues it agreed to address.
8. Programme causing too much disruption of work
and not seen relevant to work.
9. Conflicting objectives of the organization and those
of its benchmarking partners.
Objectives of Benchmarking
The following are the three main objectives of
benchmarking;
1. It aims at a goal setting process to facilitate
comparison with the best.
2. It aims at motivating and stimulating company
employees by continuously working for improved
performance and turn their entire energy towards
single focus.
3. It aims at external orientation of the company.
The
Implement
recommendations
Define process
& problems
4.Act
1. Plan
Pareto diagrams
Scatter diagrams
Runcharts
Control charts
3.Check
Group
&
Value
2. Do
Collect Data
Deming Wheel
Flow Chart
Cause & effect
Define Problem
Suggest possible
causes
QUALITY CIRCLES
A quality circle is a group of employees from the same
work area and doing similar type of work voluntarily
meet for an hour periodically either every week or
fortnightly to identify and analyze
Analysis
(By circles)
Communication to circle
(By mgt.) circle)
Solution (By
circle
(g)Implementation
(a) Problem
Identification
(e)Presentation to
management
Quality circle
operation cycle
(b) Problem
selection by
members
(d) Arrive at best
solution
(c1) Problem analysis and
discuss alternatives
Executive committee
Steering committee
Facilitator
Quality circle
Facilitator
Quality circle
Facilitator
Quality circle
Leader
Dy. Leadear
Manager
Member
Member
Member
RE ENGINEERING
The fundamental rethinking and radical re-design of
business
processes
to
achieve
dramatic
improvements of performance in cost, quality, service
& speed
Re engineering not for incremental increase in
improvements but for making Quantum Leaps
Visualizing and stream-lining any or all Business
processes
through
combining,
eliminating
or
restructuring
It is a top down programme since lower down;
perspective to visualize changes may not be there.
It is different from OD, particularly with respect to
minimal participation of employees at various levels.
A. Those who look for OD-Type values and processes can look for
avenues for meaningful involvement of employees
B. People with OD skills can help emerging new teams to be more
effective for successful implementation of re-engineering (Re-Engg.
Teams, steering committee, Process teams to replace functional
deptts.)
C. OD. knowledge about how to design parallel structures is relevant
to re-engineering.
D.When large scale systems changes affecting number of organizational
units, number of people affected, the number of org systems altered
and /or depth of cultural changes are involved, multiple types or O.D.
interventions are utilized.
e.g
Evolutions of Quality
Total quality is not a revolutionary but an evolutionary concept. It
has evolved over the years as shown
1975
1990
Quality
Circle
Quality of
Work life
OPERATIONS
1980
1985
1995
2000
Productivity
Quality
Employees
Involvement
Total
Quality
SelfDirected
Teams
CUSTOMERS
The Evolution of Quality Means and Focus
Total Quality
Control /
Management
INNOVATIONS
Evoluation
Total Quality
Management TQM
Statistical
Quality
Control
Inspection
Foreman
Operator
Years
900
1920
1940
1960
1980
1990
2000
Definition of Quality
experts.
1. Quality is fitness for use or purpose.
- Joseph M. Juran
2. Quality is conformance to requirements.
- Philip B. Crosby
3.A predictable degree of uniformity and dependability at
low cost and suited to market.
W. Edwards Deming
4.development,
manufacture,
administration
and
distribution of consistently low cost products and services
that customers need and want.
- Bill Conway
5.Total composite of product and service characteristics of
marketing, engineering, manufacturing and maintenance
through which the product and service in use will meet
the expectations of the customer.
- Armand V.Feigenbaum
development
and
improvement efforts of various groups in an
organization so as to enable marketing, engineering,
production and service at the most economical levels
which allow for full customer satisfaction.
Q Factor
Managers must appreciate the broader meaning of
quality. They should know the difference between big
Q quality and little quality. Big Q quality is
important because it encompasses cost, delivery and
safety as well as the traditional view of
conformance quality. Big Q factor is commonly used
in various terms of Total quality Management, for
example, TQM, TQC, SQC, QA, etc.
Dimensions of Quality (Kanos Model)
Noriaki Kano and others have proposed the concept
of two dimensions of product quality:
Must be (expected and performance) quality and
Attractive (excitement) quality. Kano gives the
following three features of quality.
Expected Features
CUSTOMER SATISFACTION
CUSTOMER FOCUS
It is said that in an organization quality begins and ends with
customers. The most coveted Baldrige Quality Award also stresses
on customer related issues. Out of 1000 pts, about 300 pts are
attributed to customers,
Customer Window
Customers decisions are mostly controlled by perception. There
can be a gap between what is perceived to be good and what is
important to the customer. The customer window highlights the
relationship between the perception of the customer about the
product attributes and the importance of those attributes from
technical point of view. The priority of focus is indicated in the
customer window. Many a times survey among the customers
reveal that factors in the top left quadrant of the customer
window are significant. Organizations attempt to focus on this,
without realizing that these attributes can only have short term
dividends. Attributes in the top right quadrant needs to be
focused first. Some important factors will have very poor
perception among customers. These are critical ones.
Very good
III
IV
II
Customer
Perception
Poor
Not at all
Importance to customer
Very much
Delighted
Customers
Type B Customers
Customer
Without expectations
Value addition
available
Type A customers
Customer
With expectations
Dissatisfied customers
Step II:
Step IV:
Structure
Strategy
Systems
Structure
Values
Styles
Skills
Staff
Corporate Culture
Kohoe (1996) defines organization culture as the shared
values and norms of behaviour of the individuals within
the organisation.
Values are the building blocks of a culture. Values are stable, long-term
beliefs that are hard to change. They define what is right or wrong; good
or bad; and correct or incorrect.
Hierarchical Style
information
Participative style
Top down
flow
Functional Focus
Process focus
Short-term planning
Episodic improvement
Comprehensive
improvement
Empower
Direct Counsel
Integrated functions
Enforcement
and
upward
Continuous
Acceptance Sampling
Acceptance sampling is frequently used
in a purchasing or receiving situation,
while process control is used in a
production situation of any type.
45
Number of Cases
40
35
30
25
20
15
10
5
0
0.995
Size in Inches
1.005
Advantages of SQC in
industry
1. Through SQC an objective check is maintained
on the quality of the product
2. Through SQC, it can be known whether the
manufacturing process is under control or not
and if it has gone out of control, remedial
measures can be applied.
Preventive measures can also be initiated if
there is a signal that the process is soon going
to be out of control. Thus, waste of material,
etc. is avoided
3. SQC system, if adopted & strictly followed,
increases industrys goodwill since users may
rely on its products with greater confidence.
Control Charts
The control of quality in the manufactured
product through process control is achieved
through control charts.
Based on theory of probability and sampling, the
presence of assignable causes of erratic
variations are detected in the process. These
causes are identified, eliminated & process is
stabilized & controlled at desirable
performances.
A typical control chart consists of following
three horizontal lines on the graph
1. A control line to indicate the desired standard of the control
level of the process.
2. An upper control limit indicating the upper limit of tolerance.
3. A lower control limit indicating the lower limit of tolerance.
Out of Control
Quality Scale
3 Sigma
Central Line (Average)
3 Sigma
Under Control
2 3 4
5 6
7 8
9 10 11 12 13 14 15 16
Sample Numbers
3.
Acceptance Sampling
Acceptance Sampling is performed on
goods that already exist to determine what
percentage of products confirm to
specifications. These products may be
items received from another company and
evaluated by the receiving deptt or they
may be components that have passed
through a processing step and evaluated
by company personnel either in production
or later in warehousing function.
Acceptance Sampling is executed through
a sampling plan.
Random Sample
A random sample is one in which each
unit in the lot has an equal chance of
being included in the sample and the
sample is likely to be representative of
the lot.
Variables are quality characteristics
that can be measured on a continuous
scale. E.g. Diameter of a shaft
Attributes are quality characteristics
which can be classified in one of the two
categories namely good or bad; defective
or non-defective
Producers Risk ()
The probability associated with rejecting
a high quality lot is denoted by and is
termed the Producers Risk.
This is the risk of getting a sample which
has a higher proportion of defectives than
the lot as a whole and thereby rejecting a
good lot based on sample evidence i.e. a
lot as good as AQL will be rejected by is
of a particular sampling plan. While using
acceptance sampling plans, producers
hope to keep this risk as low as 5%.
Consumers Risk ()
The probability associated with accepting a low
quality lot is denoted by and is termed as
consumers risk.
This is the risk of getting a sample which has a
lower proportion of defectives than the lot as a
whole and thereby accepting a bad lot as a good
lot i.e. it is the probability that a lot with a
percentage of defective equal to LTPD will be
accepted by the sampling plan. While using
sampling plans, consumers want to keep this risk
() as low as 10%.
The selection of particular values for AQL, , LTPD
and is cost tradeoff or more typically, on
company policy or contractual requirements.
Operating Characteristic
Curve (O.C. Curve)
The following can happen when we go for
acceptance sampling plans.
1.
2.
3.
4.
We
We
We
We
Producers
risk () 5 %
1.00
0.95
Probability of accepting
the lot (pa)
n = sample size
c = acceptance number(Maximum
number of defection in a
sample to accept the lot)
0.10
Consumers
risk () 10 %
1
AQL
5
LTPD
10
Ideal OC Curve
N = 100 units. If
defectives < 2%,
lot accepted &
if 72%, lot is rejected
Probability of
acceptance (pa)
Accept
Reject
1% 2%
%age of defectives (p)
p = Fraction defective
p = Total number of defects from all samples
Number of samples X Sample size
Sp = p (1-p)
n
UCL = p + zsp
LCL = p zsp
p = central or control line of p chart
Sp = Standard deviation
n = sample size
z = number of standard deviations for a specific confidence
z = 3 (99.7% confidence)
z = 2.58 (99.0 % confidence)
z = 1.96 (95% confidence level)
__
Central Line (p)
LCL
Sample Size
X Chart
If the standard deviation of the process
distribution is known, the X chart may be
defined as
UCL X = X + zsx
LCL X = X - zsx
Where:
sx = S = standard deviation of sample means
n
s = standard deviation of the process distribution
n = sample size
x = Average of sample means or a target value set
for the process
z = number of standard deviations for a specific
confidence (typically z = 3)
R - Chart
An R Chart is the plotting of the Range
within each sample.
Range the range is the difference
between the highest and the lowest
numbers in the sample
An R Chart is the average of the range of
each sample.
X=
________
n
Where:
x = mean of the sample
i = item number
n = total number of items in the sample
X=
m
Upper control limit = UCL x = x + A2R
Lower Control limit = LCL x = x A2R
Upper control limit for R = UCL R = D4R
Lower Control limit for R = LCL R = D3R
Where:
X = the average of the means of the
samples
j = sample number
m = total number of samples
Rj = Difference between the highest &
lowest measurement in the sample
R = Average of measurement differences
R for all samples or
R=
m
Sample
means
(x)
Sample Numbers
Sample
Range
(R)
(Sample Numbers)
C - Chart
This chart applies to the number of nonconformities in samples of constant size.
C is a variable representing the number
of non-conformities (defects) in each
sample. Usually the sample size is
considered to be one. The control limits
of this chart are based on poission
distribution.
Central Line
Mean (c)
Sample Number
C Chart
10
Classification of quality
control techniques
Control Charts are
used to control inprocess quality
Quality Control
Techniques
Acceptance
Sampling
Control Charts
For Variables
Acceptance sampling
aimed to control
quality of incoming
materials
For Attributes
For Variables
For Attributes
Single sampling
X Chart
p Chart
Plan with
Double Sampling
R Chart
C Chart
Multiple Sampling
plan
Cost of
Inspection
Costs
Cost of passing
Defectives
Amount of Inspection
C Chart
(Number of defects per unit)
UCLC = c + 3
c = 3.6 + 3 3.6
= 3.6 + 3 x 1.8974
= 9.2922
LCLC = c 3
c = 3.6 3 x 3.6
= 3.6 5.6922
= - 2.0922 = 0
CLC = c = 3.6
10.00
9.3 (UCL)
9.00
8.00
Number of
defective
units
7.00
6.00
5.00
4.00
3.6 (CL)
3.00
2.00
1.00
LCL = 0
0.00
Sample Numbers
10
2
140
142
142
139
3
142
136
143
141
4
136
137
142
142
5
145
146
146
146
6
146
148
149
144
7
148
145
146
146
8
145
146
147
144
9
140
139
141
138
10
140
140
139
139
11
141
137
142
139
12
138
140
144
138
Solution
Sample
Sample
No.
(1)
1
2
3
4
5
6
7
8
9
10
11
12
Sample Values
Total
(0.0001 inch)
Mean (x)
(2)
139
140
142
136
145
146
148
145
140
140
141
138
140
142
136
137
146
148
145
146
139
140
137
140
145
142
143
142
146
149
146
147
141
139
142
144
Sample
144
139
141
142
146
144
146
144
138
139
139
138
(3)
568
563
562
557
583
587
585
582
558
558
559
560
Total
Range
148.00
147.00
146.00
UCL (145.1)
145.00
144.00
CL (142.12)
143.00
Sample
Mean
(x)
142.00
141.00
140.00
LCL (139.15)
139.00
138.00
1
Sample Number
10
11
12
10
UCL (9.3)
9
8
7
6
5
Sample
Range
CL (4.08)
4
3
2
1
LCL (0)
0
1
Sample Number
10
11
12
2
49
6
3
37
5
4
44
7
5
45
7
6
37
4
7
51
8
8
46
6
9
43
4
10
47
6
52
51
50
49
48
UCL (47.5)
47
46
Sample
mean
(X)
45
44
CL (44.2)
43
42
41
LC (40.83)
40
39
38
37
36
Sample Numbers
10
Range Chart
3 control limits are:
UCL(R) = D4R
= 2.115 x 5.8
= 12.267
LCL (R) = D3R = 0 x 0.58
=0
Central line = R = 5.8
13
12
UCL (12.26)
11
10
Sample
Range
9
8
CL (5.8)
6
5
4
LCL (0)
3
1
Sample Numbers
10
Sample
Size
32
32
50
50
32
80
50
50
32
32
No. of
Defectives
2
3
3
2
1
4
2
0
2
1
Group Number
(Group Number)
1
2
3
4
5
6
7
8
9
10
= 0.47 + 3 x 0.37
= 0.47 + 0.111 = 0.158
LCL = .047 0.111 = 0
(if negative)
For n =50
UCL = 0.047 + 3 .047 x 0.953
50
= 0.047 + 3 x .0299
= 0.047 + .0897 = 0.136
LCL = .047 -- .0897 = -ve = NIL = 0
For n =80
UCL = 0.047 + 3 .047 x 0.953
80
= .047 + 3 x .0236
= 0.047 + .0709 = 0.117
LCL = .047 -- .0709 = -ve = NIL = 0
0.16
UCL (.158)
0.14
UCL (.136)
UCL (.117)
0.12
0.1
Sample
Range
0.08
0.06
CL (.047)
0.04
0.02
LCL (0)
n = 32
n = 50
n = 80
Sample Numbers
10
Solution: p-chart
Fraction defective p = no. of defectives = d
sample size
2000
Sample no.
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
d
425
430
216
341
225
322
280
306
337
305
356
402
216
264
126
409
193
326
280
389
Ed = 6148
p=d/2000
0.2125
0.2150
0.1080
0.1705
0.1125
0.1610
0.1400
0.1530
0.1685
0.1525
0.1780
0.2010
0.1080
0.1320
0.0630
0.2045
0.0965
0.1630
0.1400
0.1945
p = d(total no.
of defects)
---------------------No of samples
x
Sample size
= 6148
------------------20 x 2000
=0.1537
UCL = p + z sp
Sp = SD = p (1-p)
n
SD = 0.1537 x 0.8463
2000
Assuming z = 3 (number of std deviations)
UCL = 0.1537 + 3 0.1537 x 0.8463
2000
UCL = 0.1537 + 3 0.000065
= 0.1537 + 0.0242 = 0.1779
LCL = 0.1537 - 0.0242 = 0.1295
p = central line = 0.1537
0.25
0.2
UCL (0.1779)
CL (0.1537)
0.15
LCL (0.1295)
0.1
0.05
0
1
10 11 12 13 14 15 16 17 18 19 20
Sample Numbers
1.
2.
3.
Outcomes of Planning
ESTABLISH
DEPLOY
Act
Objective
Systems
Plan
IMPLEMENT
Analysis
Indicators
Targets
Check
Do
Quality Policy
Quality policy is needed to support the mission
statement. The quality policy expounds upon the
principles contained within the mission. The policy will
serve to heighten sensitivity to customer requirements
and introduce the idea of a shared responsibility for
providing first class product or service. Some of the basic
elements of quality policy are:
i. Customer focus.
ii. Company culture.
iii.Quality assurance
iv.Shared values
v. Prevention
vi.Continuous improvement
vii.Staff empowerment
1. Customer satisfaction
2. Stockholders, value
3. Employee Satisfaction
4. Public approval (are the measures)
8. Customer orientation
9. Human resource excellence
10.Product/process leadership
Visionary Executive
1.
1.
2.
2.
3.
3.
4.
4.
5.
5.
6.
6.
1.
N Aspect
o
.
Quality definition
Traditional Management
TQM
(a)
(a)
(b)
Focus on post-production
inspection.
(b)
2.
Customers
Ambiguous understanding of
customer requirements.
3.
Errors
4.
Improvement
emphasis
Gradual
but
continuous
improvement of each function.
5.
Problem solving
Group Dynamic
Scientific
Management
Strategi
c
Planning
Training and
Delvelopment
Total Quality
Management
Achievement
Motivation
Theory
Corporate
Culture
Employees
Involvement
Organizationa
l
Development
SocioTechnical
System
Linking-Pin
Organisation
QUALITY AWARDS
A number of awards are given to individuals, groups and
Companies world over in order to encourage and
motivate them to continue their efforts for quality
improvement. Some of these national, state, and industry
specific awards are listed below:-
The GOALS
The malcolm baldrige national quality award was
created to promote the following four goals:
i. Helping to stimulate american companies to improve quality
and productivity for the pride of recognition while obtaining
a competitive edge through increase.
ii. Recognizing the achivements of those companies that
improve the quality of their goods and service and provide
an examples to others.
iii. Establishing guidelines and criteria that can be used by
businesses, industrial, governmental and other organizations
in evaluating their own quality improvement efforts.
iv. Providing specific guidance to other american organizations
with wish to learn how to manage high quality, by making
available the detailed information on how winning
organiations were able to change their cultures and achieve
eminence.
Enablers:
Leadership 10%
People management 9%
Policy and strategy-8%
Resources- 9%
Processors- 14%
Enablers (total)- 50%
Results
People satisfaction 9%
Customer satisfaction-20%
Business result 15%
Impact on society- 6%
Results (Total) 50%
People
Leadership
Policies & strategies
Human resource management
Resource, process
Customer satisfaction
Employee satisfaction
impact on society
Business results
&
Consumer
Summary
A number of countries instituted national quality awards,
state quality awards, industry specific quality award for
promoting total quality management. The three most
conveted international awards given for quality are
Malcolm Baldrige National Quality Award of the USA; the
Deming prize of Japan; and the European quality award
(TEQA). In India-The Golden Peacock National Quality
Award on the pattern of the Malcolm Baldrige Award
criteria of the USA, has been instituted recently under the
quality council of India (QCI) and institution of directors
(IOD). Telco, Phillips, sail, Kirloskar, EIL, BEL, etc. Are
some of the companies who have already got this award
India .
Advising
Maintaining
Prompting
Inspecting
Producing
Developing
Organising
xi) The perception exists that the process takes too long
or that we are already doing that.
xii) There is no perceived change in management
behaviour.
Supportive Organizational Roles and Structures
To establish supportive roles and structures management
should consider three strategy initiatives:
1.Developing and communicating a clear image of future
state.
key
initiative
is
establishing
organizational
8. External Consultants
2. Updating
of
quality
tools
organizational maturity allows.
and
processes
3. Policy recommendations.
as
Quality Assurance
Quality Audit
What is Quality Audit?
Quality audit is an independent review conducted to
compare some aspects of quality performance with a
standard for that performance.
The ISO 8402-1986.
It defines quality audit as a
systematic, independent examination and evaluation to
determine whether quality activities and results comply
with
planned
arrangements
and
whether
these
arrangements are implemented effectively and are
suitable for achieving objectives.
Quality audits are used by companies to evaluate their
own quality performance and the performance of their
suppliers, licensees, agents, and others and by regulatory
agencies to evaluate the performance of organizations
which they are assigned to regulate.
5. Post-audit meeting.
At this meeting, the audit
observations are presented so that the manager can plan
for corrective action. In addition, the manager can point
out to the auditor any mistakes with respect to the facts
that have been collected.
A self-audit and an independent audit can be combined to
provide a two-tier audit.
Audit Reporting
The report may be jointly issued by the auditor and
auditee:
The report should include the following items:
evidence,
Product Audit
Product audit is an independent evaluation of product
quality to determine its fitness for use and conformance
to specifications.
Product auditing takes place after
inspections have been completed.
Concept of Service
A service is any activity or benefit that one party can offer
to another, which is essentially intangible and does not
result in the ownership of anything. Its production may
or may not be tied to a physical product. It is important
that customers needs and wants are appropriately
understood for designing and providing the services
better suited to meet the needs and expectations of
customers.
Characteristics of Services
(i)A service cannot be touched
(ii)Precise standardisation is not possible
(iii)There is no ownership
(iv)A service cannot be patented
(v)Production and consumption are inseparable
(vi)There are no inventories of services
(vii)Middlemen roles are different
(viii)The consumer is part of the production process so the
delivery system must go to the market or vice versa.
Areas of Application
The ISO 9004-2 lists some of the services to which the
international standard can be applied:
Hospitality services (like catering, television, etc.)
Health (like hospitals, medical test laboratories, etc.)
Nature of the
Business
Accomplishments
Behaviour
Products
Fast food
restaurant
Food prepared,
Orders taken.
Tables cleaned
Greet customers,
Ask for orders,
Input orders
Hamburgers,
Fries, Soft
drinks
Accounting firm
Tax payments,
Financial advice,
Audit survey
Gather data,
Interpret, Suggest
improved
procedures
Reports, Forms,
Financial
statements.
Retail store
Display products,
Make sales, Meet
customer needs
Greet customers,
Determine
customer needs
Customers
products
Automobile
dealers service
department
Automobile
space, paints
A Survey Findings
A recent survey of the top ranking organisations in the Europe
provides some useful insights into the importance of total quality
in services. Of those organisations who responded, 89 per cent
said quality was the primary buying argument for the ultimate
customer; 66 per cent believed it was a major means of
reducing costs; 56 per cent thought it was a major means of
improving flexibility and responsiveness; and 40 per cent said
total quality was important to reduce throughput time.
Management
Commitment
T
Q
M
Quality of Worklife