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Total Quality Management

Definition: Quality

Degree of excellence of a thing
Totality of features and characteristics that satisfy needs

Consumers Perspective

Fitness for use: how well product or service does what it is supposed to.
Quality of design: designing quality characteristics into a product or service.

Producers Perspective

Quality of Conformance
Making sure a product or service is produced according to design
if new tires do not conform to specifications, they wobble
if a hotel room is not clean when a guest checks in, the hotel is not functioning
according to specifications of its design

Value Based Approach

Quality is viewed in context of price
Quality is satisfactory, if it provides desired performance at an acceptable price
Customer looks at the total value proposition and not the price alone
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Meaning of Quality: The degree of excellence of a thing.

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Quality is conformance to specifications
"Quality is conformance to requirements
"Quality is fitness for purpose
"Quality is synonymous with customer needs and expectations

o Conformance quality - conforming to specifications; having a product or service
that meets predetermined standards.
o Requirements quality - meeting total customer requirements; having perceived
attributes of a service or product that meet or exceed customer requirements.
o Quality of kind - quality so extraordinary that it delights the customer; having
perceived attributes of a product or service that significantly exceed customer
expectations, thereby delighting the customer with its value.

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Dimensions of Quality: Manufactured Products

Performance : Basic operating characteristics of a product; how well a car is
handled or its gas mileage.
Features : Extra items added to basic features, such as a stereo CD or a
leather interior in a car.
Reliability : Probability that a product will operate properly within an expected
time frame; that is, a TV will work without repair for about seven
years.
Conformance : Degree to which a product meets preestablished standards.
Durability : How long product lasts before replacement.
Serviceability : Ease of getting repairs, speed of repairs, courtesy and competence of
repair person.
Aesthetics : How a product looks, feels, sounds, smells, or tastes.
Safety : Assurance that customer will not suffer injury or harm from a
product; an especially important consideration for automobiles.
Perceptions : Subjective perceptions based on brand name, advertising, and the
like.

Dimensions of Quality: Service

Time and
Timeliness
: How long must a customer wait for service, and is it completed
on time?
Is an overnight package delivered overnight?
Completeness : Is everything customer asked for provided?
Is a mail order from a catalogue company complete when
delivered?
Courtesy : How are customers treated by employees?

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Are catalogue phone operators nice and are their voices pleasant?
Consistency : Is the same level of service provided to each customer each time?
Is your newspaper delivered on time every morning?
Accessibility and
convenience
: How easy is it to obtain service?
Does a service representative answer you calls quickly?
Accuracy : Is the service performed right every time?
Is your bank or credit card statement correct every month?
Responsiveness : How well does the company react to unusual situations?
How well is a telephone operator able to respond to a customers
questions?

Differences between Manufacturing and Service Organizations

Defining quality in manufacturing organizations is often different from that of services.
Manufacturing organizations produce a tangible product that can be seen, touched, and
directly measured. Examples include cars, CD players, clothes, computers, and food
items. Therefore, quality definitions in manufacturing usually focus on tangible product
features.

The most common quality definition in manufacturing is conformance, which is the
degree to which a product characteristic meets preset standards. Other common
definitions of quality in manufacturing include performancesuch as acceleration of a
vehicle; reliabilitythat the product will function as expected without failure;
featuresthe extras that are included beyond the basic characteristics; durability
expected operational life of the product; and serviceabilityhow readily a product can
be repaired. The relative importance of these definitions is based on the preferences of
each individual customer. It is easy to see how different customers can have different
definitions in mind when they speak of high product quality. In contrast to
manufacturing, service organizations produce a product that is intangible. Usually, the

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complete product cannot be seen or touched. Rather, it is experienced. Examples
include delivery of health care, experience of staying at a vacation resort, and learning
at a university. The intangible nature of the product makes defining quality difficult.
Also, since a service is experienced, perceptions can be highly subjective. In addition to
tangible factors, quality of services is often defined by perceptual factors. These include
responsiveness to customer needs, courtesy and friendliness of staff, promptness in
resolving complaints, and atmosphere. Other definitions of quality in services include
timethe amount of time a customer has to wait for the service; and consistencythe
degree to which the service is the same each time. For these reasons, defining quality in
services can be especially challenging

Evolution of Quality Management

Mass Inspection Inspecting, Salvaging, Sorting, Grading, Rectifying, Rejecting
Quality Control
(Acceptance
Sampling)
Quality Manuals , Product Testing using SQC, Basic Quality
Planning
Quality
Assurance
Emphasis on Prevention, Proactive approach using SPC,
Advance Quality Planning
Total Quality
Control
All aspects of Quality of inputs, testing equipments, Control on
Process.
Company Wide
Quality Control
Measured in all functions connected with production such as
R&D, Design, Engineering, Purchasing, Operations, etc.,
Total Quality
Management
Measured in all aspects of Business Top management
Commitment, Continuous Improvement, Involvement &
Participation of Employees

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Mass Inspection:

An inspection is, most generally, an organized examination or formal evaluation
exercise. It involves the measurements, tests, and gauges applied to certain
characteristics in regard to an object or activity. The results are usually compared to
specified requirements and standards for determining whether the item or activity is in
line with these targets. Inspections are usually nondestructive.

Objective of Inspection:

The major objective of inspection is the prevention of defects.
Detect defects as they occur in processing.
Detect trends in the process which might lead to defects.
Remove defective parts from production to stop further handling and processing
costs.
Remove defective parts to prevent poor performance of finished product.
Inform all levels of management on the performance of manufacturing
departments or units.
Provide records for evaluation of individual machine or worker performance,

Quality Control:

Quality control is a process by which entities review the quality of all factors involved
in production. This approach places an emphasis on three aspects.

Elements such as controls, job management, defined and well managed
processes, performance and integrity criteria, and identification of records.
Competence, such as knowledge, skills, experience, and qualifications

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Soft elements, such as personnel integrity, confidence, organizational culture,
motivation, team spirit, and quality relationships.

Quality Assurance:

Quality assurance, or QA for short, is the systematic monitoring and evaluation of the
various aspects of a project, service or facility to maximize the probability that
minimum standards of quality are being attained by the production process. QA cannot
absolutely guarantee the production of quality products.

Two principles included in QA are: "Fit for purpose" - the product should be suitable
for the intended purpose; and "Right first time" - mistakes should be eliminated. QA
includes regulation of the quality of raw materials, assemblies, products and
components, services related to production, and management, production and
inspection processes.

There are many forms of QA processes, of varying scope and depth. The application of
a particular process is often customized to the production process.

A typical process may include:

test of previous articles
plan to improve
design to include improvements and requirements
manufacture with improvements
review new item and improvements
test of the new item

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Total Quality Control

"Total quality control" is a measure used in cases where, despite statistical quality
control techniques or quality improvements implemented, sales decrease. If the original
specification does not reflect the correct quality requirements, quality cannot be
inspected or manufactured into the product. For instance, the parameters for a pressure
vessel should include not only the material and dimensions, but also operating,
environmental, safety, reliability and maintainability requirements.

Company Wide Quality Control

Elements such as controls, job management, defined and well managed processes,
performance and integrity criteria, and identification of records,. Competence, such as
knowledge, skills, experience, and qualifications, . Soft elements, such as personnel
integrity, confidence, organizational culture, motivation, team spirit, and quality
relationships. The quality of the outputs is at risk if any of these three aspects is
deficient in any way.

Total Quality Management

Total - Made up of the Whole
Quality - Degree of Excellence a Product or Service Provides
Management - Act, Art or Manner of Planning, Controlling, Directing,

Therefore, TQM is the art of managing the whole to achieve excellence.

Total Quality Management means that the organization's culture is defined by and
supports the constant attainment of customer satisfaction through an integrated system

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of tools, techniques, and training. This involves the continuous improvement of
organizational processes, resulting in high quality products and services.

Definition - TQM is a process and philosophy of achieving best possible outcomes
from the inputs, by using them effectively and efficiently in order to deliver best value
for the customer, while achieving long term objectives of the organization

The core of TQM is the customer-supplier interfaces, both externally and internally, and
at each interface lie a number of processes. This core must be surrounded by
commitment to quality, communication ofthe quality message, and recognition of the
need to change the culture of the organisation to create totalquality. These are the
foundations of TQM, and they are supported by the key management functions
ofpeople, processes and systems in the organisation.

Goal of TQM: Do the right things right the first time, every time.

Total client satisfaction through quality products and services; and
Continuous improvements to processes, systems, people, suppliers, partners,
products, and services.

Productivity and TQM

Traditional view:
Quality cannot be improved without significant losses in productivity.
TQM view:
Improved quality leads to improved productivity

Factors

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The organisation needs a long-term commitment to continuous improvement.
Adopt the philosophy of zero errors/defects to change the culture to right first
time.
Train people to understand the customer/supplier relationships.
Do not buy products or services on price alone look at the total cost.
Recognize that improvement of the systems must be managed.
Adopt modern methods of supervising and training eliminate fear.
Eliminate barriers between departments by managing the process improve
communications and teamwork.
Eliminate goals without methods, standards based only on numbers, barriers to
pride of workmanship and fiction get facts by studying processes.
Constantly educate and retrain develop experts in the organisation.
Develop a systematic approach to manage the implementation of TQM.

Evolution of Quality Approaches

Quality management is a recent phenomenon. Advanced civilizations that supported
the arts and crafts allowed clients to choose goods meeting higher quality standards
than normal goods. In societies where art responsibilities of a master craftsman (and
similarly for artists) was to lead their studio, train and supervise the on, the importance
of craftsmen was diminished as mass production and repetitive work practices were
instituted. The aim was to produce large numbers of the same goods. The first
proponent in the US for this approach was Eli Whitney who proposed (interchangeable)
parts manufacture for muskets, hence producing the identical components and creating
a musket assembly line. The next step forward was promoted by several people
including Frederick Winslow Taylor a mechanical engineer who sought to improve
industrial efficiency. He is sometimes called "the father of scientific management." He
was one of the intellectual leaders of the Efficiency Movement and part of his approach
laid a further foundation for quality management, including aspects like

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standardization and adopting improved practices. Henry Ford also was important in
bringing process and quality management practices into operation in his assembly lines.
In Germany, Karl Friedrich Benz, often called the inventor of the motor car, was
pursuing similar assembly and production practices, although real mass production
was properly initiated in Volkswagen after World War II. From this period onwards,
North American companies focused predominantly upon production against lower cost
with increased efficiency.

Walter A. Shewhart made a major step in the evolution towards quality management by
creating a method for quality control for production, using statistical methods, first
proposed in 1924. This became the foundation for his ongoing work on statistical
quality control. W. Edwards Deming later applied statistical process control methods in
the United States during World War II, thereby successfully improving quality in the
manufacture of munitions and other strategically important products.

Quality leadership from a national perspective has changed over the past five to six
decades. After the Second World War, Japan decided to make quality improvement a
national imperative as part of rebuilding their economy, and sought the help of
Shewhart, Deming and Juran, amongst others. W. Edwards Deming championed
Shewhart's ideas in Japan from 1950 onwards. He is probably best known for his
management philosophy establishing quality, productivity, and competitive position.
He has formulated 14 points of attention for managers, which are a high level
abstraction of many of his deep insights. They should be interpreted by learning and
understanding the deeper insights and include:

Break down barriers between departments
Management should learn their responsibilities, and take on leadership
Improve constantly
Institute a programme of education and self-improvement

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In the 1950s and 1960s, Japanese goods were synonymous with cheapness and low
quality, but over time their quality initiatives began to be successful, with Japan
achieving very high levels of quality in products from the 1970s onward. For example,
Japanese cars regularly top the J.D. Power customer satisfaction ratings. In the 1980s
Deming was asked by Ford Motor Company to start a quality initiative after they
realized that they were falling behind Japanese manufacturers. A number of highly
successful quality initiatives have been invented by the Japanese (see for example on
this page: Taguchi, QFD, Toyota Production System. Many of the methods not only
provide techniques but also have associated quality culture (i.e. people factors). These
methods are now adopted by the same western countries that decades earlier derided
Japanese methods.

Customers recognize that quality is an important attribute in products and services.
Suppliers recognize that quality can be an important differentiator between their own
offerings and those of competitors (quality differentiation is also called the quality gap).
In the past two decades this quality gap has been greatly reduced between competitive
products and services. This is partly due to the contracting (also called outsourcing) of
manufacture to countries like India and China, as well internationalization of trade and
competition. These countries amongst many others have raised their own standards of
quality in order to meet International standards and customer demands. The ISO 9000
series of standards are probably the best known International standards for quality
management.

There are a huge number of books available on quality management. In recent times
some themes have become more significant including quality culture, the importance of
knowledge management, and the role of leadership in promoting and achieving high
quality. Disciplines like systems thinking are bringing more holistic approaches to

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quality so that people, process and products are considered together rather than
independent factors in quality management.

The influence of quality thinking has spread to non-traditional applications outside of
walls of manufacturing, extending into service sectors and into areas such as sales,
marketing and customer service.

Strategic Thinking and Planning:

Many organizations are finding that strategic quality plans and business plans
areinseparable.
The time horizon for strategic planning is three to ten years and short-
termplanning is one year (annual) or less. Both types of planning require goals
andobjectives.

Goals and Objectives

o Goals and objectives have basically the same meaning.
o We will differentiate between the two by using goals for long-term and
objectivesfor short-term planning.
o The goal is to win the war; the objective is to capture the bridge.

Seven Steps to Strategic Planning

1. Customer Needs.
2. Customer Positioning.
3. Predict the Future.
4. Gap Analysis.
5. Closing the Gap.

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6. Alignment.
7. Implementation.

Quality System

A quality management system (QMS) can be expressed as the organizational structure,
procedures, processes and resources needed to implement quality management.

Elements of a Quality Management System
1. Organizational Structure
2. Responsibilities
3. Methods
4. Data Management
5. Processes
6. Resources
7. Customer Satisfaction
8. Continuous Improvement
9. Product Quality

Basic Elements of Quality Systems:

1. Quality Systempersonnel training and qualification;
2. Controlling the product design;
3. Controlling documentation;
4. Controlling purchasing;
5. Product identification and traceability at all stages of production;
6. Controlling and defining production and process;
7. Defining and controlling inspection, measuring and test equipment;
8. Validating processes;

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9. Product acceptance;
10. Controlling nonconforming product;
11. Instituting corrective and preventive action when errors occur;
12. Labeling and packaging controls;
13. Handling, storage, distribution and installation;
14. Records;
15. Servicing;
16. Statistical techniques;

Quality Planning

Systematic process that translates quality policy into measurable objectives and
requirements, and lays down a sequence of steps for realizing them within a
specified timeframe.

Quality planning is responsible for several important functions such as

Examining drawing received from design section.
Preparing inspection and test schedules.
Planning process control.
Determining Quality control and inspection staff requirements.
Scheduling calibration and maintenance of gauges, measuring instruments.


ISO International Organization for Standardization
ISO 9000 Is an International Organized Quality Management System Developed By
International Standard Organization (ISO)

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Standard or series of standards Sector
ISO 9001:2008 Quality Management
ISO 14001:2004 Environmental Management
ISO 26000 Social Responsibility
ISO 31000:2009
ISO/TS 16949:2009 Automotive
ISO 10002:2004, ISO/TS 10004:2010 Customer Satisfaction
IAW 2:2007 Education
ISO 50001, TC 242 Energy
ISO 22000:2005 Food Safety
ISO/IEC 27001:2005 Information Security
IWA 1:2005 Health Care
IWA 4:2009 Local Government
ISO 13485:2003 Medical Devices
ISO/TS29001:2007 Petroleum and Gas
ISO 31000:2009 Risk Management
ISO 30000:2009 Ship Recycling
ISO 28000:2007 Supply Chain Security

ISO 9000

The ISO 9000 family of standards relate to quality management systems and are
designed to help organizations ensure they meet the needs of customers and other
stakeholders.

ISO 9000 deals with the fundamentals of quality management systems, including the
eight management principleson which the family of standards is based. ISO 9001 deals
with the requirements that organizations wishing to meet the standard have to meet.

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It is a set of rules.
It provides guidance to quality management.
It is an excellence tool for developing a strong foundation of good processes and
systems.
A standard of Quality System in which to conduct business.

Need of ISO 9000

Credible suppliers
Major customers
Government agencies
Retailers

ISO 9000 implementation

The way to implement the ISO9000 in quality system by:

Defining all processes.
Quality management training for employees.
Design all procedures.
Produce and Reset quality management documentation.
Scope and measure all determinants of processes.

Benefits of ISO 9000

o Improved Control, Procedures, Documentation, Communication, Dissemination
AndCustomer Satisfaction, Quicker Identification and Resolution of Problems.

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o Reduced Errors, Customer Complaints AndNon-Conforming Products, Services,
Costs and the Retention of Customers.
o Responsibility For Quality Issues Is Placed Firmly Where It Belongs.
o A Better Working Environment

ISO9000 and Quality Management

o ISO9000 Guides Quality Management
o ISO9000 realize quality management processes to its policy.
o Achieves Customer Satisfy by registration to ISO9000.
o Easy to prove the minimum of quality control.
o The preparation of systems, procedures, working instructions, etc., to meet the
requirement of ISO9000 will have a beneficial effect on a companys performance
in term of improve process yields.
o Help quality management to achieve customer satisfaction.
o ISO 9000 support the improvement quality management processes.
o Tuning all quality processes and procedures to meet the minimum requirement
of ISO9000 series.
o ISO 9000 series helped in the process of understanding and agreement between
the source and the consumer even from long distances around the world.

Certification Structure

International
Accreditation
Forum (IAF)
The IAF is an association of Accreditation Bodies and other interest
parties from around the world, who work together to promote
confidence and consistency in the ISO 9001 accreditation and
certification process.
Accreditation
Body
The Accreditation process provides additional confidence that the

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certification body is competent and has the necessary integrity to
issue an ISO 9001 certificate. Accreditation is usually carried out
by national or regional accreditation bodies, and their accreditation
mark will appear on the certificate.
Certification
body/ registrar
A common way for a supplier to demonstrate conformity to ISO
9001 is via an independent (third party) certification process. A
certification body (sometimes known as a registrar) conducts an
audit of the supplier and if all is ok, they will issue a certificate of
conformity.
The Organization
(your supplier)
If you know your supplier well and have confidence in them, it
may be sufficient for you to accept a supplier declaration of
conformity to ISO 9001 issued by them. Alternatively, you may
choose to audit your supplier yourself or rely on audits that have
been carried out by other reputable customers. These are known
as Second-party audits
The Customer
(You)
You are the one who is buying the goods or the services from your
supplier. You need to make sure you tell them clearly what you
want. Depending on how well you know your supplier, the
confidence you have in their products and the importance of their
products for your own business, you might not even need them to
demonstrate conformity to ISO 9001 at all.


Auditing

Quality Audit is the process of systematic examination of a quality system carried out
by an internal or external quality auditor or an audit team. It is an important part of
organization's quality management system and is a key element in the ISO quality
system standard, ISO 9001. Quality audits are typically performed at predefined time

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intervals and ensure that the institution has clearly-defined internal quality monitoring
procedures linked to effective action. This can help determine if the organization
complies with the defined quality system processes and can involve procedural or
results-based assessment criteria. With the upgrade of the ISO9000 series of standards
from the 1994 to 2000 series, the focus of the audits has shifted from purely procedural
adherence towards measurement of the actual effectiveness of the Quality Management
System (QMS) and the results that have been achieved through the implementation of a
QMS.


Two types of auditing are required to become registered to the standard: auditing by an
external certification body (external audit) and audits by internal staff trained for this
process (internal audits). The aim is a continual process of review and assessment, to
verify that the system is working as it's supposed to, find out where it can improve and
to correct or prevent problems identified. It is considered healthier for internal auditors
to audit outside their usual management line, so as to bring a degree of independence
to their judgments.

The processes and tasks that a quality audit involves can be managed using a wide
variety of software and self-assessment tools. Some of these relate specifically to quality
in terms of fitness for purpose and conformance to standards, while others relate to
Quality costs or, more accurately, to the Cost of poor quality. In analyzing quality costs,
a cost of quality audit can be applied across any organization rather than just too
conventional production or assembly processes.


Under the 1994 standard, the auditing process could be adequately addressed by
performing "compliance auditing":

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Tell me what you do (describe the business process)
Show me where it says that (reference the procedure manuals)
Prove that this is what happened (exhibit evidence in documented records)

The 2000 standard uses a different approach. Auditors are expected to go beyond mere
auditing for rote "compliance" by focusing on risk, status and importance. This means
they are expected to make more judgments on what is effective, rather than merely
adhering to what is formally prescribed. The difference from the previous standard can
be explained thus:

Under the 1994 version, the question was broadly "Are you doing what the manual says
you should be doing? whereas under the 2000 version, the question is more "Will this
process help you achieve your stated objectives? Is it a good process or is there a way to
do it better?"

Advantages

It is widely acknowledged that proper quality management improves business, often
having a positive effect on investment, market share, sales growth, sales margins,
competitive advantage, and avoidance of litigation. The quality principles in ISO
9000:2000 are also sound, according to Wade and also to Barnes, who says that "ISO
9000 guidelines provide a comprehensive model for quality management systems that
can make any company competitive implementing ISO often gives the following
advantages:

1. Create a more efficient, effective operation
2. Increase customer satisfaction and retention
3. Reduce audits
4. Enhance marketing

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5. Improve employee motivation, awareness, and morale
6. Promote international trade
7. Increases profit
8. Reduce waste and increases productivity.