TQM EXAM NOTES

RASHMI.S
PAPER 1
 PART A - 1. GOALS OF TQM
• There are 5 goals of TQM.
• 1. Customer Delight- Customer Needs
• Customer & supplier relationship – customer pays
salary – idea.
• 2. Continuous Improvements – value additions .
• 3 .Total employee involvement & empowerment – team
work – Motorola, Ford teams , TVS – Sundaram Iyengar.
• 4 .Optimization of resources – all resources optimum –
no extras.
• 5 .Do Right At First Time – collect data, check suitability
& see how the knowledge is useful to u & use it for
competitive adv.
 2. QUALITY COST
• Quality cost is the sum of all costs a company invests to ensure that there is
release of a quality product. They are associated with preventing, finding, and
correcting defective work
• There are 3 types of quality costs, viz;
• Prevention Cost
• Appraisal Cost
• Failure Cost

Prevention Cost: involved in ensuring that faulty or defections / rejections are not
produced in very first instance.

Design Reviews/Checking
Documents Checking
Supplier Evaluation/Education
Capability Studies
Tool Inspection
Operator Training
Inspection
Quality Audit/Education/
Zero Defect Programme
Customer Inspection
Appraisal Cost: Costs involved in carrying out the actual inspection.

Prototype Inspection
Design Evaluation
Qualification Tests
Purchase Surveillance
Incoming Inspection
Product Inspection
Calibration

Failure Cost : Direct / indirect costs incurred on those products/

services which fail to comply with the prescribed standards.

Redesign Effort
Engineering Changes
Scrape, Rework,
Unplanned Purchase
Corrective Action/NCR
Warranty/After Sales Service
Product Liability
 3. TQM GURUS - DEMING
• DEMING: William Edwards Deming (October 14, 1900 – December 20, 1993)
was an American statistician, professor, author, lecturer, andconsultant.

• Deming made a significant contribution to Japan's reputation for innovative high-

quality products and its economic power. He is regarded as having had more
impact upon japanese manufacturing and business than any other individual not
of Japanese heritage. he taught top management how to improve design (and
thus service), product quality, testing and sales (the last through global markets)
[1]
 through various methods, including the application of statistical methods.
• His 14 principles, known widely as Deming’s 14 principles are;

1. Consistency of Purpose : Top Management should follow vision, Mission and

objectives to be achieved

2. Learn a new Philosophy : Learn new techniques-challenge the working

3. Do not depend on Mass Inspection : Use sampling methods for inspection

4. Reduce the number of vendors – Indian corporates – more; Japanese – 1 vendor
only- Educate vendor & make him understand responsibility.
5. Recognize two sources of namely
a ) Management and production systems : Integrate all process. 85% of quality
with mgmt.
b) Production workers
6. Improve on the job Training : Training for best results – continuous improvement –
assess training needs – in local Lang, - measure every 3 months.
7. Improve supervision for continuous improvement: existing process – inventory,
WIP….
8. Drive out fear : Self sustaining- new methods for process, proactive
9. Improve communication: proper, crisp communication – in local lang & reach in
shortest time – notice boards, feedback , daily meeting….
10. Eliminate fear : wrong decisions – experience, eliminates fear – Reliance –
individual decisions.
11. consider work standards carefully – tolerance – not important, usage – important
; no overdesign..- cheaper cost @ same quality.
12. Teach statistical Methods : SPC-for process capability ,machine capability,
13 .Encourage new skills-Innovation -continuous improvement
14 . Use statistical knowledge- 6 sigma – statistics excellent…
 4. TQM AWARDS – DEMING
AWARD
• Deming’s Prize is the Japanese quality award for individuals
and groups that have contributed to the field of quality control.
• Established in 1951 by Japanese Union of Scientists and
Engineers (JUSE) to recognise those who excel in quality control
and as a way of driving quality control.
• It was also established to thank Dr. Deming for his
accomplishments and impact in the Japanese industry.
• There are 4 categories of the Deming awards;
• 1 . Deming Prize for individuals – individuals – outstanding
contribution in tqm and statistical methods in tqm .
• 2. The Deming distinguished service awards for dissemination
& Promotion Overseas – individuals – activities outside Japan.
• 3. Deming Application Award – org that achieve distinctive
performance through tqm throughout the yr.
• 4. the Quality control award for operations business units:
operation business units achieved distinctive performance
through tqm in a designated yr.
• The Deming Application Prize is an annual award presented to a company
that has achieved distinctive performance improvements through the
application of TQM.
• Regardless of the types of industry, any organization can apply for the
Prize, be it public or private, large or small, or domestic or overseas.
Provided that a division of a company manages its business autonomously,
the division may apply for the Prize separately from the company.
• There is no limit to the number of potential recipients of the Prize each
year. All organizations that score the passing points or higher upon
examination will be awarded the Deming Application Prize.

• Some of the Indian Co’s that have got the Deming Prize are;

• Sundaram-Clayton Limited, Brakes Division ;(1998)

• Sundaram Brake Linings Ltd.(2001)
• TVS Motor Company Ltd. (2002)
• Mahindra and Mahindra Ltd., Farm Equipment Sector (2003)
• Lucas-TVS Ltd. (2004)
• Krishna Maruti Limited, Seat Division (2005)
• Asahi India Glass Limited, Auto Glass Division (2007)
• Tata Steel Limited (2008)
Assessment model of the DAP
1 Policy-Management and quality policy
Policy creation-consistency of
policies-Review-Relation ship
between policy and plans.
2 Organizations and Management
3 Education and dissemination
4 Quality information management
5 Analysis
6 Standardization
7 Control/Management
8 Quality Assurance
9. Results/effects
10 Future plans
 5. ISO 9001 SERIES
• ISO 9001 is by far the world’s most established quality framework,
currently being used by around 897,000 organizations in 170 countries
worldwide, and sets the standard not only for quality management
systems, but management systems in general.
It helps all kinds of organizations to succeed through improved customer
satisfaction, staff motivation and continual improvement.
• ISO 9001 is one of a series of quality management system standards. It
can help bring out the best in your organization by enabling you to
understand your processes for delivering your products/services to your
customers. The ISO 9001 series of standards consist of:
• ISO 9000 – this introduces the user to the concepts behind the
management systems and specifies the terminology used.
• ISO 9001 – this sets out the criteria you will need to meet if you wish to
operate in accordance with the standard and gain certification.
• ISO 9002 - primarily deals with production operations and assembly
• ISO 9003- primarily deals with final inspection and testing to assure
quality in the products that the company receives from other companies
• ISO 9004 – Guidelines for performance improvement: based upon the eight quality
management principles, these are designed to be used by senior management as a
framework to guide their organizations towards improved performance by
considering the needs of all interested parties, not just customers.
• gives guidance to organizations that provide services to customers that may or may
not have a product to offer
• Some software organizations usually support the products they supply instead of
designing or manufacturing the products.
• ISO 9001:2008-It gives the requirements for quality management systems. It is
firmly established as the globally implemented standard for providing assurance
about the ability to satisfy quality requirements and to enhance customer satisfaction
in supplier-customer relationships.
• Revised from ISO 9001:1994
• Requires organizations that are already certified to update their quality systems to
comply with the new standards
• Differs from ISO 9001:1994 in terms of quality models (e.g. 20 elements are no
longer required)
• Emphasizes continual improvement, management responsibility, and resources
management
• Is broader so that more industries can apply the quality standards to their areas
 6. IMPORTANCE OF
•
TAGUCHI’S LOSS FN
Rather than designing defects, lets design quality into the product right
from the beginning .
• Simply put, the Taguchi loss function is a way to show how
each non-perfect part produced, results in a loss for the
company. Deming states that it shows
• L(y) = K (y-m)2 = Loss at a point
• where,
k = loss coefficient
x = measured value
t = target value

• The Taguchi Loss Function is a graphical depiction of loss developed

by the Japanese business statistician Genichi Taguchi to describe a
phenomenon affecting the value of products produced by a company.
• Concept : quality does not suddenly plummet when, for instance, a
machinist exceeds a rigid blueprint tolerance. Instead "loss" in value
progressively increases as variation increases from the intended
condition. This was considered a breakthrough in describing quality, and
helped fuel the continuous improvement movement that since has
become known as lean manufacturing

• The Taguchi Loss Function is important for a number of reasons.

• Primarily, to help engineers better understand the importance of
designing for variation.
• It was important to the Six Sigma movement by driving an improved
understanding of the importance of Variation Management
• Finally, It was important to describing the effects of changing variation
on a system, which is a central characteristic of Lean Dynamics, a
business management discipline focused on better understanding the
impact of dynamic business conditions (such as sudden changes in
demand seen during the 2008-2009 economic downturn) on loss, and
thus on creating value.
 PART B- 4. ISO 9001 –
PROCESS OF CERTIFICATION
• ISO 9001 is the internationally recognized standard for the quality
management of businesses.
• It applies to the processes that create and control the products and
services an organization supplies.
• It prescribes systematic control of activities to ensure that the
needs and expectations of customers are met
• It is designed and intended to apply to virtually any product or
service, made by any process anywhere in the world.
• The key phrase in the ISO 9001 standard of "management systems".
ISO 9001 does not deal with product or service quality issues. ISO
9001 is all about management of processes and procedures.
• It came into effect as on Dec 2008, after revision from the ISO
9000: 9004 series.
• BENEFITS
•  Planning each and every activity in the system, avoids duplication or missed/ delayed actions
causing delays / added costs.
•  Ensures Consistency in the delivery process.
•  Documenting the process/ activities generate means for audit, basis for corrective
• action and continuous process improvements.
• Training new personnel becomes easier with the documented procedures/ instruction.
•  Better implementation and sustaining of procedures/forms introduced as the
• system is subject to audit.
•  Operations will tend to shift towards System orientated from Person oriented.
•  Better standing in the market. Education delivery service marketed shall be from
• an ISO 9001 certified Institute.

• ISO 9001:2008,
• The requirement standard, for certification and updation includes the following main sections:
• 1. Quality Management System
• 2. Management Responsibility
• 3. Resource Management
• 4. Product Realization
• 5. Measurement Analysis and Improvement.
•
• STEPS TO ISO 9001
• 1. ISO awareness to Management and Senior Staff.
• 2. Study existing system, identify the gaps.
• 3. Identify Processes carried out in the functions and develop
system for the
• same.
• 4. Set departmental objectives identify measures and set
mechanism for
• measuring the data, analyzing the data and taking actions for
improvements
• 5. Quality System Documentation (Procedures, Work Instruction,
and
• Forms/Format) linked to the Process identification.
• 6. Generation of Quality policy, Objectives and Measures.
• 7. Re-define the Resource Management to measure competency of
all the staff
• and demonstrate improvements in the competency through HRD
• 8. Quality Manual development and finalization.
• 9. Internal auditors training for reporting non-conformities in
Quality System.
• 10.Conduct Internal Audits and fine-tune the system.
• 11.Monitor implementation through Management Review meetings.
• 12.Application to the certification agency.
• 13.Pre-assessment audit by certification agency (Optional).
• 14.Compliance audit by certification agency.
• 15.CERTIFICATION.
• ISO 9001 certification is granted after audit by a number of certification
• agencies. There are a number of foreign agencies operating world wide
providing
• ISO 9001 certification. These are DNV, BVQI, ISOQAR, KPMG, TuV,
SAQAS, etc.
• There are also Indian agencies granting certification, these are BIS and
STQC.
• Guidance shall be given to client in selecting the certification agencies
at appropriate
• time of the ISO 9001 activities. In principle if we narrow down on the
Certification
• agencies, quotations may be obtained and finalized. The cost of
certification charged
• by the certification agencies depends on the size and area of operation
to be
• covered.
• The cost of certification fees charges depends from Agencies to
agencies and
• includes
•  Registration fees
•  Certification audit fees
•  Surveillance audit fees
• Based on the activities carried out in the Institute, the scope of
certification has to be defined and certificate issued accordingly.
 3. FAILURE MODE EVALUATION
ANALYSIS (FMEA)
• A Failure mode and effects analysis (FMEA) is a procedure for
analysis of potential failure modes within a system, either for the
classification by severity or determination of the failures' effect upon the
system.
• It is widely used in the manufacturing industries in various phases of the
product life cycle and is now increasingly finding use in the service
industry as well.
• Failure causes are any errors or defects in process, design, or item
especially ones that affect the customer, and can be potential or actual.
• Effects analysis refers to studying the consequences of those failures.
• [Failure mode: "The manner by which a failure is observed; it
generally describes the way the failure occurs."
• Failure effect: The immediate consequences a failure has on the
operation, function or functionality, or status of some item.]
• The oldest form of the FMEA is the trial and error method.
• FMEA was formally used by the US military and the aerospace
/ rocket science dept, after which it was introduced by Henry
Ford as safety & regulatory consideration & to improve their
production and design.
• The purpose of the FMEA is to take actions to eliminate or
reduce failures, starting with the highest-priority ones.
• It may be used to evaluate risk management priorities for
mitigating known threat-vulnerabilities.
• FMEA helps select remedial actions that reduce cumulative
impacts of life-cycle consequences (risks) from a systems
failure (fault).
• It is used in many formal quality systems such as QS-9000 or
ISO/TS 16949.
• FMEA begins during the earliest conceptual stages of design,
later it is used for process control, before and during ongoing
operation of the process and continues throughout the life of
the product or service.
• PROCESS OF FMEA: straightforward – 3 phases.
• Pre – Work:
• Before starting with an FMEA, the robustness analysis and past history must be looked
into through the Interface Matrices, Boundary Diagrams and Parameter Diagrams.
• Describe the system and it’s function. Which uses are desirable & which are not.
• Consider both intentional and unintentional uses- hostile environment.
• Block diagram of the system -major components or process steps and how they are
related. Around this the FMEA can be developed- worksheet created.
• Step 1: Severity:
• Determine all failure modes based on the functional requirements and their effects.
Examples of failure modes are: Electrical short-circuiting, corrosion or deformation.
• As a failure mode in one component can lead to a failure mode in another component,
each failure mode should be listed in technical terms and for function. Hereafter the
ultimate effect of each failure mode needs to be considered.
• Each effect is given a severity number(S) from 1(no danger) to 10(important), based
on which the engineers prioritize.
• If an effect has a number 9 or 10, actions are considered to change the design
• by eliminating the failure mode, if possible, or protecting the user from the effect. A
severity rating of 9 or 10 is generally reserved for those effects which would cause
injury to a user or otherwise result in litigation.
• Step 2: Occurrence
• In this step it is necessary to look at the cause of a failure and how many times
it occurs. This can be done by looking at similar products or processes and the
failures that have been documented for them.
• A failure cause is looked upon as a design weakness. All the potential causes for
a failure mode should be identified and documented.
• Again this should be in technical terms. Ex: excessive voltage. A failure mode is
given a probability number 1-10.
• Actions need to be determined if the occurrence is high
• This step is called the detailed development section of the FMEA process.
• Step 3: Detection
• When appropriate actions are determined, it is necessary to test their efficiency.
Also design verification is needed. The proper inspection methods need to be
chosen.
• First, an engineer should look at the current controls of the system, that
prevent failure modes from occurring or which detect the failure before it
reaches the customer. Identify testing, analysis, monitoring and other
techniques that can have been used on similar systems to detect failures. From
these controls an engineer can learn how likely it is for a failure to be identified
or detected. Each combination from the previous 2 steps, receives a detection
number (D). This number represents the ability of planned tests and inspections
at removing defects or detecting failure modes.
• After this the Risk Priority No’s ( RPN ) must be calculated.
• The failure modes that have the highest RPN should be given
the highest priority for corrective action.
• recommended actions with targets, responsibility and dates of
implementation are noted.
• The FMEA should be updated whenever:
• • At the beginning of a cycle (new product/process)
• • Changes are made to the operating conditions
• • A change is made in the design
• • New regulations are instituted
• • Customer feedback indicates a problem
• Uses of FMEA
• • Development of system requirements that minimize the
likelihood of failures.
• • Development of methods to design and test systems to
ensure that the failures have been eliminated.
• • Evaluation of the requirements of the customer to ensure
that those do not give rise to potential failures.
• • Identification of certain design characteristics that contribute
to failures, and minimize or eliminate those effects.
• • Tracking and managing potential risks in the design. This
helps avoid the same failures in future projects.
• • Ensuring that any failure that could occur will not injure the
customer or seriously impact a system.
• Advantages
• • Improve the quality, reliability and safety of a
product/process
• • Improve company image and competitiveness
• • Increase user satisfaction
• • Reduce system development timing and cost
• • Collect information to reduce future failures,
capture engineering knowledge
• • Reduce the potential for warranty concerns
• • Early identification and elimination of potential
failure modes
• • Emphasis problem prevention
• • Minimize late changes and associated cost
• • Catalyst for teamwork and idea exchange
between functions
• FMEA can be used in diff types for the diff
industries.
 2. QUALITY FUNCTION
DEPLOYMENT
• Quality Function Deployment, or QFD, is a tool that helps in
improving the existing processes by focusing energy and
attention on efforts that will ensure the greatest result.
• QFD was developed to bring a personal interface to modern
manufacturing and business & bridge the growing distance
between producers and users.
• QFD works by first identifying and prioritizing customer
requirements and expectations.
• This information can be used to focus with greater
confidence on the important customer requirements as a
starting place to define such things as product
requirements, design features, manufacturing processes or
support requirements.
• implements elements of Systems Thinking with
elements of Psychology and Epistemology (knowledge).
• QFD provides a system of comprehensive development
process for:
• • Understanding customer needs
• • What 'value' means to the customer
• • Understanding how customers or end users become
interested, choose, and are satisfied
• • Analyzing how do we know the needs of the customer
• • Deciding what features to include
• • Determining what level of performance to deliver
• • Intelligently linking the needs of the customer with
design, development,
• engineering, manufacturing, and service functions
• • Intelligently linking Design for Six Sigma (DFSS) with
the front end Voice of
• Customer analysis and the entire design system
• QFD helps organizations seek out both spoken
and unspoken needs, translate these into
actions and designs, and focus various
business functions toward achieving this
common goal, empowering organizations to
exceed normal expectations and provide a
level of unanticipated excitement that
generates value.
• The QFD methodology can be used for both
tangible products and non-tangible services,
including manufactured goods, service
industry, software products, IT projects,
business process development, government,
healthcare, environmental initiatives, and
many other applications.
• Implementation:
• Define the project.- with intended results.
• Create the team –
• Get buy-in – commitment from all members
• Define customer expectations.- perceive as the
customer will think / expect.
• Define the requirements that will satisfy your
customers’ expectations – how to satisfy their
requirements.
• Develop the first relationship matrix. -compare
each customer expectation against list of identified
product or service requirements .
• Check your work –reality survey with customers.
• Prioritize your requirements
• Establish targets.
• Construct the QFD set of matrices - generates a list
of the important process characteristics that must
receive special attention to ensure that design features
are met.
 1. NEW 7 QC TOOLS OF
•
MGMT
In 1976, the Union of Japanese Scientists and Engineers (JUSE) saw the need
for tools to promote innovation, communicate information and successfully
plan major projects
• . A team researched and developed the seven new quality control tools,
often called the seven management and planning (MP) tools, or simply the
seven management tools. Not all the tools were new, but their collection and
promotion were.
• The seven MP tools, listed in an order that moves from abstract analysis to
detailed planning, are:
• Affinity diagram:
• Relations diagram: 
• Tree diagram: 
• Matrix diagram: 
• Matrix data analysis
• Arrow diagram
• Process decision program chart (PDPC):
• Affinity dig: Large vol of data are gathered and organized.
• Ideas, opinions and facts relating to a problem are grouped.
• A sequence / pattern formation is the main aim. Mostly used in addressing
customer dissatisfaction issues.
• tools for verbal data.
• Relations diagram: Also called as Inter relationship diagram.
• Relationships between diff causative factors & main issue are established.-
identifies causes which cause problems.
• Solves problems on the basis of logical analysis and linkages with the prob.
• Tree Diagram: tool for non – numerical data.
• shows the relationships between an issue and its component elements.
• Tool for operational planning & initial diagnosis of issues.
• final chart shows steps from the initial problem to the final problem in a
sequential development.
• Matrix diagram : consists of a set of rows & columns.
• The intersection of the rows & columns are checked for
determining the nature & strength of the problem
• helps in arriving at key ideas & effective way of
perusing & solving the issue.
• ideas are conceived on a 2 dimensional basis.
• Matrix data analysis: Also known as principal
component analysis.
• It is a multi variate analysis technique.
• Quantifies & arranges data, presented in a matrix dig
to find general indicators that differentiate & give
clarity to a large no of complexly intertwined info. The 
L-shaped matrix, a prioritization matrix uses pairwise
comparisons of a list of options to a set of criteria in
order to choose the best option(s).
• Arrow diagram : Tool to plan the most appropriate schedule
for the completion of a complex task & its related sub tasks.
• It projects the likely completion time & monitors all sub tasks
for adherence to necessary schedule.
• The total task/ work is broken down into sub tasks.
• The sub tasks & the total work are linked together by arrows &
a dig is constructed to depict the activities. – Projects.

• Process decision Program Chart (PDPC): Method which

maps out conceivable contingencies & events that can occur in
any implementation plan along with appropriate counter
measures,
• Qualitative tool - Plans each possible tool of events, that needs
to occur when the problem / goal is an unfamiliar one.
• It is used when ;
• 1. task on hand is new/ unique.
• 2. Implementation plan has sufficient complexity.
• 3. Consequences of failure are severe.
• 4. Efficiency of implementation is crucial.
• 5. Contingencies must be planable.