Unit 1

Introduction

Quality
Quality is an attribute of a product or service that fulfils or
exceeds human expectation
As per ISO 9000:2000 Quality means The degree to which a
set of inherent characteristics fulfils requirements
Oxford dictionary Quality is the degree of excellence
Fitness for use, fitness for purpose, customer satisfaction or
conformance to requirements
Q = P/E,
Where, Q- Quality, P Performance, E Expectation
Q >1, Satisfaction

Need/Importance of Quality
Provides competitive edge
Reduces cost due to return, rework & scrap
Increases profit, productivity, brand image, product image &
company good will
Generates satisfied customers
High employee morale & improves productivity

Evolution of Quality
1924 W.A. Sehwart of Bell Telephone Laboratories chart for
control of product variables
1942 Statistical Quality Control
1946 ASQ American Society for Quality Control
1950 Edward Deming Lectures at Japan about quality
1954 Joseph Juran at Japan Managements responsibility to
achieve quality
1960 Quality control circles
1970 US managers went to Japan to learn quality

Continued
1980 Concepts of TQM introduced
1990s Rankings based on customer satisfaction
ISO 9000 world wide Quality Management System
ISO 14000 Environmental Management System

Definition
TQM Enhancement of traditional way of doing business
Proven technique to survive in world class competition
Total made up of the whole
Quality degree of excellence a product or service produces
Management Act, art, or manner of handling, controlling,
directing, etc.

The Range From Services to Products

Dimensions of Quality
Performance primary product characteristics. Eg Usage, gaming
Features Secondary characteristics. Eg Camera, etc
Conformance - meeting specific standards
Reliability Consistency of performance over a period
Durability Useful life including repair
Service Resolution of problems, service
Response Human to human interface
Aesthetics Sensory characteristics Exterior finish
Reputation - Past performance

Dimensions of Service Quality

Reliability
Responsiveness
Assurance
Empathy
Tangibles
Other Dimensions Time, completeness, courtesy, consistency,
accessibility, etc.

Characteristics of TQM
Management philosophy guide to
change
Customer oriented management
system
Starts at the top needs
management commitment
Teamwork

Recognizes customer supplier relationship

Considers supplier as a partner
Emphasizes importance of measurement
Interlinks various sub systems of the organization
Aims at meeting the dynamic needs of the customer
Aims to instil prevention not an inspection ethic

Calls for planning

Continuous performance
improvement at all levels
Achieving results by process based
approach

Basic concepts of TQM

1. Top management commitment
2. Focus on the customer
3. Effective involvement & utilization of entire workforce
4. Continuous improvement
5. Treating suppliers as partners
6. Establishing performance measures for the processes

TQM Framework

Principles of TQM
Customer requirements should be
met
Agreed requirements from internal &
external customers
Everybody should be involved from
all levels
Regular two way communication
between all
Identifying training needs & relating
them with individual capabilities
Top managements participation &
commitment
Culture of continuous improvement

Emphasis on purchase & supply management

Every job must add value
Eliminate waste & reduce total costs
Focus on prevention of problems
Culture of promoting creativity
Performance measures must
Focus on team work

Barriers to implement TQM

Lack of management commitment
Lack of faith & support to TQM
among management personnel
Inability to change organizational
culture
Misunderstanding concepts of TQM
Improper planning

Lack of continuous training & education

Lack of interest or incompetence of leaders
Ineffective measurement techniques
Non application of proper tools & techniques
Inadequate use of empowerment & team work
Inadequate attention to internal & external customers
Delay or non improvement of quality teams recommendation

Lack of employee commitment

Lack of effective communication

Potential benefits of TQM

TANGIBLE BENEFITS

INTANGIBLE BENEFITS

Improved employee participation

Improved product quality
Improved productivity

Improved team work

Improved working relationships

Reduced quality costs

Improved customer satisfaction

Increased market & customers

Improved communication

Increased profitability

Enhancement of job interest

Reduced employee grievances

Enhanced problem solving

Better company image

Contribution of
Quality Gurus
DEMING, JURAN & CROSBY

W. Edward Deming
Deming American senior quality guru
1928 awarded doctorate in mathematical physics
1946 expertise in SQC was sent to Japan after WWII
1951 after having impressed by his contribution, Japanese established
the Deming Prize annually awarded to firms that distinguish themselves
with QMS
1956 awarded the Shewart medal by American Society for Quality
Control
1960 Awarded by the Japanese Emperor with the Second Order
Published more than 200 books on Quality

Demings Contributions
1. Demings 14 points on route to quality
2. Deming cycle or PDCA
3. Seven deadly diseases of Management
4. System of profound knowledge

Demings 14 Points
1. Create constancy of purpose towards improvement of product &
service
2. Adopt the new philosophy
3. Cease the dependence on inspection to achieve quality
4. End the practice of rewarding business based on price tag
5. Improve constantly and forever the system of production &
service
6. Institute training on the job
7. Institute leadership

Continued
8. Drive out fear
9. Break down barriers between departments
10.Eliminate slogans, exhortations and targets on workforce
which ask for zero defects and new levels of productivity
11.Eliminate work standards (quota) on the factory floor
12.Remove barriers to pride of workmanship
13.Institute a vigorous program of education & self improvement
14.Put everybody on the company to accomplish the
transformation

2. Deming Cycle or PDCA Cycle

Systematic approach to
problem solving by Deming
Universal improvement
method idea to constantly
improve
Reduces the difference
between customer requirement
& performance of the process
The cycle repeats itself

3. Seven Deadly diseases of

Western Management
1. Lack of consistency of purpose
2. Emphasis on short term profit
3. Reliance on performance appraisal & merits
4. Reliance on financial figures
5. Staff mobility
6. Excessive medical costs
7. Excessive legal costs

4. System of Profound
Knowledge
According to Deming, the four ingredients of the system of
profound knowledge necessary to learn & practice are:
1. Appreciation for a system
2. Knowledge of statistical theory
3. Theory of knowledge
4. Knowledge of psychology

Joseph M. Juran
Born in Romania (1904) and emigrated to America in 1912
1951 Quality Control Handbook
Mid 1950 Travelled to Japan to conduct seminar on planning,
organizational issues, management responsibility for quality,
etc.
Authored hundreds of papers & books
Awarded 30 medals & fellowships worldwide including Japanese
Second Order of the Sacred Treasure by the Emperor

Jurans Contributions
1. Internal Customer
2. Cost of Quality
3. Quality Triology
4. Jurans 10 step for Quality Improvement
5. The Breakthrough concept

1. Internal Customer
End person alone is not the
customer
Each person along the chain is a
customer from product designer
to final user
The person will be a process
carrying out transformation
activity
Jurans three role model
Each participant played 3 roles

2. Cost of Quality
Juran classified cost of quality into three classes:
i.

Failure costs scrap, rework, corrective actions, warranty

claims, customer complaints, loss of customer

ii. Appraisal costs Inspection, compliance auditing &

investigation
iii. Prevention costs training, preventive audit, & process
improvement implementation

3. Jurans Quality Triology

Juran viewed quality as fitness for use
Divided quality planning into 3 parts:
i.

Quality Planning

ii. Quality Control

iii. Quality Improvement

4. Jurans 10 steps for Quality

Improvement
1. Build awareness of the need
& opportunity for
improvement
2. Set goals for improvement
3. Organize to reach the goals
4. Provide training
5. Carry out projects to solve
problems

6. Report Progress
7. Give recognition
8. Communicate results
9. Keep score
10.Maintain momentum by
maintaining annual
improvement

5. The Breakthrough Concept

Jurans breakthrough concerns with product/service life cycle
It is split into two areas:
i.

Journey from symptom to cause

ii. Journey from cause to remedy

3. Philip Crosby
American quality guru
Best known for Zero Defects & Do it right first time
Written many books Quality is free, Quality without tears,
Lets talk Quality and Leading: the art of becoming an
Executive
Founder of Carrer IV, Philip Crosby Associates Inc & Quality
College

Crosbys Contribution
1. Four absolutes of quality
2. 14 steps to quality management &
3. Crosbys quality vaccine

1. Crosbys Absolutes for Quality

Management

2. Crosbys 14 Steps
Proposed 14 steps to quality improvement process:
1. Establish & ensure management commitment
2. Form quality improvement teams (QIT) for quality
improvement process, planning & administration
3. Establish Quality Measurements
4. Evaluate the cost of quality & explain its use as
management tool to measure waste
5. Raise quality awareness among all employees
6. Take actions to correct problems identified in previous
steps

Continued
8. Train supervisors & managers in their roles &
responsibilities in quality improvement process
9. Hold zero defects day to reaffirm management commitment
10.Encourage individuals & groups to set improvement goals
11.Obstacle reporting
12.Recognize & appreciate all participants
13.Establish Quality Council
14.Do it all over again to demonstrate that improvement is a
never ending process

3. Crosbys Quality Vaccine