B.E/B.

TECH DEGREE EXAMINATION - Nov/Dec 2010

Seventh Semester
Electrical and Electronics Engineering
MG1401-TOTAL QUALITY MANAGEMENT
Time: 3 hours

Maximum: 100 marks

Answer ALL the questions.
PART A-(10X2=20 marks)

1. What are the seven faces of Quality?

Seven Tools:
1. Pareto Diagram
2. Process Flow Diagram
3. Cause and Effect diagram
4. Check sheets
5. Histogram
6. Scatter diagram v Control charts
2. Define Strategic planning.
It sets the long term direction of the organization in which it wants to proceed in future.Can be
defined "As the process of deciding on objectives of the organization, on changes onthis
objective, on the resource used to obtain these objectives and on the policies that are to
govern the acquisition use and disposition of these resources"

3. Why do the business people measure customer satisfaction?

The Customer is the King - Emphasized by Today's Buyers Market. TQM's Purpose ismeeting
or exceeding customer expectations, so that the customers are delighted. The
customersatisfactions must be the primary goal of any organization.
4. What are the strategic goals of performance measure?
PERFORMANCE APPRAISAL
It is a systematic and objective assessment or evaluation of performance and contribution of
individual
Needs
Identifying employees for salary revision, promotion, transfer, demotion, lay off
To determine training needs of employee
To take organizational inventory of people
To know personal strength and weakness of individuals
To validate the selection procedure
5. Mention the ways to reduce variability.
6. Mention the uses of Control chart.
A statistical tool to determine if a process is in control. Reasons for using Control Charts:
Improve productivity

 Make defects visible

Determine what process adjustments need to be made Determine if process is in orout of
control
7. What are the goals of TPM?
To develop a conceptual understanding of the basic principles and
methods associated with TQM;
To develop an understanding of how these principles and methods have been put into effect
in a variety of organizations;
To develop an understanding of the relationship between TQM principles and
the theories and models studied in traditional management;
To do the right things, right the first time, every time.

8. List out various techniques adopted for JIT.

JIT is a Japanese technique, which means Just-intime technique. The primary goal of JIT is
to achieve Zero inventory in an organization as well as throughout the entire supply chain.
Just-in-time is not a jargon term for a new concept. It represents a goal. That goal is the
ultimate
total
elimination
of
inventory.
9.Define environmental policy.
10.What are the elements of a Quality Systems? The key processes of Software Quality
Management fall into the following three
categories: 1) Quality Planning 2) Quality Assurance 3) Quality Control The Software
PART B-(5X16=80 marks)
11.(a)What are the different definitions given for quality?Explain how it got evolved and
what are its pirme concerns.(16)
QUALITY DEFINITION
1. Predictable degree of uniformity and dependability at low cost and suited to the market
-Deming
2. Fitness for use-Juran
3. Conformance to requirements - Crosby
4. Minimum loss imparted by a product to society from the time the product is shipped Taguchi
5. A way of managing tile organization -Feigenbaum
6. Correcting and preventing loss, not living with loss - Hosffin .
7. The totality of characteristics of an entity that bear on its ability to satisfy stated and implied
needs ISO
Quality can be quantified as
Q = P/E Where Q=Quality P=Performance E=Expectations

If Q is greater than 1.0, then the customer has a good feeling about the product or service.
Or
(b)(i)Discuss the management techniques for establishing quality costs.(8)
COST OF QUALITY
Quality costs are defined are those costs associated with the non-achievement of product or
service quality as defined by the requirements established by the organization and its contracts
Simply stated, quality cost is the cost of poor products or services.
CATEGORIES & ELEMENTS OF QUALITY COST
Costs are incurred in the accumulation and continued evaluation of customer and use quality
needs and perceptions affecting user satisfaction with the organizations product or
Costs are incurred to translate customer and user needs in to reliable quality standards and
requirements and to manage the quality of new product or service.
Costs are incurred to assure conformance requirements of supplier parts, materials or processes
and to minimize the impact of supplier non conformance on the quality of delivered products
or
Costs are incurred in assuring the capability and readiness of operations to meet quality
standards and requirements and to impart quality education to operating personnel.
Costs are incurred in the overall administration of the quality management function.
Purchasing appraisal costs can generally be considered the costs incurred for the inspection and
test of purchased supplies or service to determine acceptability to use.
2. Operations (Manufacturing or service) Appraisal Costs:
Operations appraisal costs can generally be considered the costs incurred for the test or audit
required to determine and assure the acceptability of product or service.
External appraisal costs are incurred for field set up or installation and check out for the
Costs are incurred for regular reviewing inspection and test data, prior to release of the product
Costs involved in quality audits to assure continued ability to provide acceptable support to
1. Product or Service Design Failure Costs (Internal):
Design failure costs are the unplanned costs that are incurred because of inherent design
Costs which are incurred due to the rejects of purchased items.
3. Operations (Product or Service) Failure Costs:
The costs associated with nonconforming product or service discovered during the operations
process. It is categorized in to three distinct areas: material review and corrective action, rework

1. Complaint Investigations of Customer or User Service:

It includes the total cost of investigating, resolving and responding to individual customer and
Costs incurred in evaluating, repairing and replacing goods.

Retrofit and recall costs are those costs required to modify or update products or field
servicefacilities to a new design change level, based on major redesign due to design
deficiencies.
Warranty costs include the total costs of claims paid to the customer or user after acceptance
tocover expenses, including repair costs, such as removing defective hardware from a system,
orcleaning costs, due to food or chemical service accident.
Liability costs are organization-paid costs due to liability claims, including the cost of product
or Penalty costs are those costs incurred because less than full product or service performance
is achieved as required by contracts with customers or by government rules and regulations.
This category involves costs incurred that customers are not satisfied with quality of delivered
product or service because the customers quality expectations were greater than the quality
they Lost sales comprise the value of the contribution to profit that is lost due to sales reduction
because of quality problems.

(ii)Describe the various Quality Statements.Give examples.(8)

QUALITY STATEMENTS
VISION STATEMENT: It is a short declaration of what an organization aspires to be
tomorrow. It is an ideal state which may never be achieved.
Example: To continuously enrich knowledge base of practioners in mobility industry and
institutions in the service of humanity SAE
MISSION STATEMENT: Describes the function of the organization. It provides the clear
statement of purpose for the employees, customers and suppliers.
Example: Facilitating world class technical education through high quality institutions,
academic excellence and innovative research and development programmes, technology
forecasting and global manpower planning, promoting industry institute interaction,
inculcating entrepreneurship AICTE
QUALITY POLICY STATEMENT: It is a guide for everyone in the organization as to how
they provide products and services to the customer. Written by the CEO feedback from
workforce and approved by quality council.
Example: Xerox is a quality company. Quality is the basic business principle for Xerox.
Quality means providing our external and internal customers with innovative products and
service that fully satisfy their requirements. Quality is the job of every employee Xerox
12.(a)(i)Explain
the
key
elements
of
(ii)Explain the conditions for selection and evaluation of suppliers.(8)

partnering.(8)

SUPPLIER PARTNERSHIP
A commitment to continuous quality improvement cannot be translated into reality without
treating supplier as partner
PRINCIPLES OF CUSTOMER / SUPPLIER RELATION

Both the customer and the supplier are fully responsible for the control quality
Both the customer and the supplier should be independent of each other and respect each
others independence The customer is responsible for providing the supplier with clear and
sufficient requirements so that the supplier can know precisely what to produce
Both the customer and the supplier should enter into an non adversarial contract with respect
to quality, quality, price, delivery method and terms of payments
The supplier is responsible for providing the quality that will satisfy the customer and
submitting necessary data upon the customers request
Both the customer and the supplier should decide the methods to evaluate the qualityof the
product or service to the satisfaction of both parties
Both the customer and the supplier should establish in the contract the method by which they
can reach an amicable settlement of any disputes that may arise.
Both the customer and the supplier should continually exchange information, sometimes using
multifunctional teams, in order to improve the product or service quality
Both the customer and the supplier should perform business activities such as
procurement, production and inventory planning, clerical work and system so that anamicable
and satisfactory relationship is maintained
When dealing with business transactions both the customer and the supplier should always
have the best interest of the end user in mind
SUPPLIER PARTNERING
It is defined as a continuing relationship, between a buying firm and supplying firm,involving
a commitment over an extended time period, an exchange of information,
andacknowledgement of the risks end rewards of the relationship.
BENEFITS OF SUPPLIER PARTNERING
Improved Quality
Reduced cost
Increased Productivity
Increased efficiency
Increased market share
Increased opportunity for innovation
Continuous improvement of products/services. .
JAPANES REVIEW OF PARTNERING
The Japanese partnering concept is KELRESTU developing long term relationshipswith a
few key suppliers rather than having short term relationship with many suppliers.
Key elements to Partnering
Long term Commitment

Trust
Shared vision - To satisfy the end users is the common goal of both supplier andcustomer.

SUPPLIER SOURCING
Sole sourcing - only one supplier for the entire organization. This may be forced. tohappen
because of patent, technical specification, raw material location, monopolisticsupplier
Multiple sourcing - For a single item having two or more supplier, resulting in bette r quality,
better service at lower cost
Single sourcing- use of one supplier to one item when several sources are available leading to
long-term partnering relationship.
BASIS OF SUPPLIER SELECTION
Cost, Quality, Delivery, Reliability, Management compatibility, Goal congruence and Strategic
direction of supplier firm.
STAGE IN SUPPLIER SELECTION & EVALUATION
Survey stage, enquiry stage, negotiation and selection stage, experience stage.
The supplier should understand and appreciate the management philosophy of the organization
The supplier should have a stable management system
The supplier should maintain high technical standards and have the capability of dealing with
future technological innovation
The supplier should provide those raw materials and parts required by the purchaser andthose
supplied meet the quality specifications
The supplier should have the capability to produce the amount of production needed
The supplier should not breach the corporate secrets
The supplier should be easily accessible in terms of transportation and communication
The supplier should be sincere in implementing the contract provisions
The supplier should have an effective quality system and improvement program such as ISO /
QS 9000
The supplier should have a track record of customer satisfaction and organization credibility
SUPPLIER RATING
Also referred as score card system, is used to obtain and overall rating of supplier performance
based on quality, price, performance and production capability
OBJECTIVES OF SUPPLIER RATING
Obtain an overall rating of supplier performance ensure completer communication with
suppliers - provide each supplier about the details of problems for corrective action and -

maintain and improve the partnering relationship between the customer and the supplier.
Or
(b)(i)Compare Deming and Juran approaches.(8)
DEMINGS 14 POINTS
1. Create constancy of purpose for improvement of products and service.
2. Adopt a new philosophy: we are in a new economic age.
3. Cease dependence upon inspection as a way to achieve quality.
4. End the practice of awarding business based on price tag.
5. Constantly improve the process of planning, production, and service- this system includes
people.
6. Institute training on the job.
7. Institute improved supervision (leadership)
8. Drive out fear.
9. Break down barriers between departments.
10. Eliminate slogans/targets asking for increased productivity without providing methods
11. Eliminate numerical quotas.
12. Remve barriers that stand between workers and their pride of workmanship.
13. Institute programs for education and retraining.
14. Put all emphasis in the company to work to accomplish the transformation.
JURAN TRILOGY
Dr. Joseph Moses Jurans major contribution to the world has been in the field of quality
management.
Dr.Joseph Juran was also called as father of Quality. He was a professor and Quality consultant
and conceptualized the Pareto principle where many Industries depends on it. The American
society for quality have proposed to rename the Paretos principle as JuransPrinciple. Its
universal application makes it one of the most useful concepts and tools of modern day
management.
Dr. Joseph Moses Juran has written many books on Quality. One of his book
namelyStandard reference work on Quality control is one of the reference handbook used by
quality departments in most of the organizations.
This handbook on quality gives more useful information to improve the performance of the
organization by improving the quality of goods and services. One of his classic book namely
Managerial Breakthrough presents more general theory of quality management
The book Managerial Breakthrough is the first book to describe a step by step sequence for
breakthrough improvement. Today this process has evolved in to six sigma and it act as a basis
for quality initiatives world wide.

In 1979 Juran founded Juran Institute, an organization aimed at providing Research and
pragmatic solutions to enable organizations from any Industry to learn the tools and techniques
for managing Quality.
Juran describes Quality from the customer perspective as having two aspects.
Higher quality means greater number of features that meet customer needs.
The second aspect is that the product should be free from troubles.
The Juran Trilogy, published in 1986, was accepted world wide as the basis for quality
management.
The Juran Trilogy describes three basic components or processes required to manage quality
in the organization. They are
Quality Planning
Quality improvement
Quality Control
Quality Trilogy model was developed by Juran at Juran Institute. Quality Trilogy provides a
model of how an organization can improve from the bottom line by better understanding the
relationship between the processes that plan , control and improve quality.
(ii)Explain the importance of customer satisfaction.(8)
Customer satisfaction
The Customer is the King - Emphasized by Today's Buyers Market. TQM's Purpose is meeting
or exceeding customer expectations, so that the customers are delighted. The
customersatisfactions must be the primary goal of any organization.
CUSTOMER SATISFACTION MODEL
Tebouls Model of customer satisfaction as shown in figure
From the above diagram it is understood that the company should strive for increasing th e
intersection portion i.e. Customer Satisfaction.
THE CUSTOMERS ARE
The most important people in the business
Not dependent on the organization, but the organization depends on them.
Not an interruption to work but are the purpose of it.
Doing a favor when they seek business and not vice-versa.
A part of business, not outsiders and they are life blood of the business
People who come with their needs and jobs
Deserve the most courteous and attentive treatment.

TYPES OF CUSTOMERS
Internal Customer: The customer inside the company are called internal customers

External Customers: An external customer is the one who used the product or service or
whopurchase the products or service or who influences the sale of the product orservice.
CUSTOMER SUPPLY CHAIN
CUSTOMER COMPLAINTS (FEEDBACK)
Customer feedback must be continuously solicited and monitored to reduce the
dissatisfied customers as much as possible.
CUSTOMER FEEDBACK OR CUSTOMER COMPLAINT IS REQUIRED
To discover customer dissatisfaction
To identify customers needs
To discover relative priorities of quality
To compare performance with the competition
To determine opportunities, for improvement
TOOLS USED FOR COLLECTING CUSTOMER COMPLAINTS
Comment card - Low cost method, usually attached to warranty card
Questionnaire - Popular tool, costly and time consuming - by mail or telephone
preferably multiple choice questions or a point rating system (1 to 5) or (1 to 10)
Customer Focus groups - Meeting by a representative of the company with the group
of customers. Imprint analysis is an emerging technique to obtain intrinsic feelings using
customer meetings, word associations, discussion, relaxation techniques etc.
Phone - Toll free Telephone numbers
Customer visits - Visit customer's place of business.
Report cards - Usually, send to customer on a quarterly basis.
The internet and computer - It includes newsgroups, electronic bulletin board mailing
lists,Employee feedback.
Mass Customization - Capturing the voice of customers using data of what customer want
instead of what customer is thinking about buying and manufacturing exact what they want.
STEPS TO SOLVE CUSTOMER COMPLAINTS
Complaints can be collected from all sources (letters, phone -calls, meetings and verbinputs)
Develop procedures for complaint resolution, that include empowering front-linepersonnel.
Analyze complaints, but understand that complaints do not always fit into new
categories
Work to identify process and material variations and then eliminate the root cause.and strive to
resolve the concern.

Establish customer satisfaction measures and constantly monitor them.

solution, to all people in the organization. .
Provide a monthly complaint report to the quality council for their evaluation andneeded, the
assignment of process improvement teams.
Identify customer's expectations beforehand rather than afterward through complaint analysis.

CUSTOMER RETENTION
More powerful and effective than customer satisfaction
It is the process of retaining the existing customer
Customer care can be defined as every activity which occurs within the organization that
ensures that the customer is not only satisfied but also retained.
SIGNIFICANCE OF CUSTOMER RETENTION
60% of organizations future revenue will come from exiting customers
2% increase in customer retention has 10% decrease in operating cost.
96% of unhappy customers do not complain but 3 times likely to convey to other customers
about their bad experience.
91% of unhappy customers never purchase goods and services from you.
It costs 5 times more to attract the customer than retaining the existing customer.
Customer retention creates customer loyalty and moves customer satisfaction to a nextlevel
called customer delight.
EMPLOYEE INVOLVEMENT
It is the total involvement from every person at all levels in the organization
ASPECTS OF EMPLOYEE INVOLVEMENT
1. Employee motivation
When a survey response is received, a senior manager should contact the customer
Communicate complaint information, as well as the result of all investigation
2. Employee Empowerment
3. Teams and Team work
4. Recognition and Reward Schemes
5. Performance Appraisal

13.(a)Explain the different types of control charts available for problem

solving.Enumerate on the different patterns commonly noticed in control charts.(16)

CONTROL CHART: A statistical tool to determine if a process is in control.

CONTROL CHARTS FOR VARIABLES AND ATTRIBUTES VARIABLE CONTROL
CHARTS
1. Deal with items that can be measured. Example
1) Weight 2) Height 3) Speed 4) Volume
Types:
X chart: deals with a average value in a process R chart: takes into count the range of the
MA chart: take into count the moving average of a process 2.ATTRIBUTE CONTROL
CHART

v Control charts that factor in the quality attributes of a process to determine if the process is
performing in or out of control.
Types:
P chart C Chart U Chart
P Chart: a chart of the percent defective in each sample set.
chart: a chart of the average number of defects in each sample set.
Reasons for using Control Charts: Improve productivity
Make defects visible
Determine what process adjustments need to be made Determine if process is in orout of
control
Or
(b)With a specific application compare the affinity diagram and relationship diagram in
terms of getting highly creative solutions for managerial problems.(16)
Affinity diagram
An affinity diagram is a tool to collect a large amount of verbal expressions (ideas, opinions,
observations, etc) and organize them in group according to natural relationships between
individual items.
Affinity diagram is used:
To provide a visual representation of large amount of
ideas.
To determine logical priorities.
To extract the large amount of useful information from few or scattered
data or from unrelated ideas.
To understand and organize problems that are not clear.
To clear new concepts.

Relationship diagram
The relationship diagram is a tool for fining causes to a problem. The relationship diagram not
only clarifies the relationship between cause and effect but also between the various causes.

Use of relationship diagram

The purpose of the relationship diagram is generate a visual representation of the relations
between an effect and its causes as well as the inter-relationship between the different causes
of the problem.
Tree diagram
A tree diagram systematically breaks down a topic into its components elements, and shows
the logical and sequential links between these elements.
The tree diagram systematically outlines the complete spectrum of paths and tasks that must
be carried out to achieve a goal.
Use tree diagram
The purpose of the tree diagram is to explore the ways and means to achieve the
objective, develop a list of alternative means and to present them in visual
understandable from.
Matrix diagram
A matrix diagram is a tool that is used to systematically organize information that
must be compared on variety of characteristics in order to make a comparison,
selection or choice.
Use matrix diagram
The matrix diagram is used to show relations between individual items in two sets of factors.
Decision tree or process decision programmer chart (PDCA)
A decision tree or PDPC is a planning tool to outline every conceivable and likely occurrence
in any planning.
Use decision tree
The PDPC or decision tree is useful when one wants to plan all possible chains of events that
might occur during a project. This tool is particularly used in new
product development, building and equipment, and data processing programs.
This tool is widely used in decision making when the task is new, complex and
unique.

arrow diagram
An arrow diagram is a graphic description of the sequential steps that must be
completed before a project can be completed. Example: PERT and CPM charts.
use arrow diagram
The main purpose of the arrow diagram are:
i)to show the paths to complete for
the project.
ii)to find the shortest time possible for the project and
iii)to display
graphically simultaneous activities.
The arrow diagram is indispensable for long-term projects, such as the
construction of a plant or development of new products.
Matrix data analysis diagram
A matrix data analysis diagram is very much similar to a matrix diagram with a
difference that numerical data is used instead of symbols indicating the existence and strength
of relationship.
Use matrix data analysis diagram
The purpose of matrix data analysis diagram is to present numerical data about
two sets of factors in a matrix form and analyse it to get numerical output. This
tool is used in principle component analysis where only two characteristics can be studied at a
time.

14.(a)Describe the different benchmarking metrices that can be used in educational

institutions.(16)
Process benchmarking - the initiating firm focuses its observation and investigation of business
processes with a goal of identifying and observing the best practices from one or more
benchmark firms. Activity analysis will be required where the objective is to benchmark cost
and efficiency; increasingly applied to back-office processes where outsourcing may be a
consideration.
Financial benchmarking - performing a financial analysis and comparing
The results in an effort to assess your overall competitiveness.
Performance benchmarking - allows the initiator firm to assess theircompetitive

position by comparing products and services with those of target firms.

Product benchmarking - the process of designing new products or upgrades

To current ones. This process can sometimes involve reverse engineering which is taking apart
competitors products to find strengths and weaknesses.
Strategic benchmarking - involves observing how others compete. This type
isusually not industry specific meaning it is best to look at other industries.
Functional benchmarking - a company will focus its benchmarking on a
singlefunction in order to improve the operation of that particular function. Complex functions
such as Human Resources, Finance and Accounting and Information and Communication
Technology are unlikely to be directly comparable in cost and efficiency terms and mayneed
to be disaggregated into processes to make valid comparison.
Or
(b)Explain the different steps involved in Failure Mode Effect Analysis with an
example.(16)
Design FMEA is used in the design process by identifying known and
foreseeable failure modes and then ranking failures according to relative impact on the product.
Design FMEA reduces development time and cost of manufacturing process by eliminating
many potential failure modes prior to operation of the process.needed for reference.
FMEA number space is given on the top right corner of the document which is
ITEM space is used for component (or) process to be analysed.
Design Responsibility space is used for the team in-charge of the design or
process , (or) the name and the department of the person responsible for preparing the
document.provided to avoid confusion between similar components.
Model Number / Year of the component should be included in the space
Key date space is used for initial Due date of FMEA.
FMEA date original and FEMA date latest revision should be filled.
In the Core team space, the names of the responsible individuals and
departments having authority to perform tasks should be filled up.

Item / Function:

In this column, the name and code number of the item being analysed is recorded.
This function of the item should be entered.
If the item has more than one function, they should be listed and analysed separately.
The environment (temperature. pressure, humidity etc) in which the system operates
should be completely given.

15.(a)List the different types of quality audits available in practice and explain when each
has to be carried out?

This chapter describes the types of audits that government and nongovernmental
auditorganizations conduct and those organizations arrange to have conducted, of government
organizations, programs, activities, functions, and funds. This description is not intended
tolimit or require the types of audits that may be conducted or arranged. In conducting these
types of audits, auditors should follow the applicable standards included and incorporated in
the chapters, which follow.
All audits begin with objectives, and those objectives determine the type of audit to be
conducted and the audit standards to be followed. The types of audits, as defined by their
objectives, are classified in these standards as financial audits or performance audits.
Audits may have a combination of financial and performance audit objectives or may have
objectives limited to only some aspects of one audit type. For example, auditors conduct audits
of government contracts and grants with private sector organizations, as well as government
and nonprofit organizations, that often include both financial and performance objectives.
These are commonly referred to as "contract audits" or "grant audits." Other examples of such
audits include audits of specific internal controls, compliance issues, and computer-based
systems. Auditors should follow the standards that are applicable to the individual objectives
of the audit.The internal audits were carried out by the Managing Director and the quality
system representative, who drew up the audit plan, the audit check-list and the formats for the
audit report and for the reports by the regional office experts on their particular fields. The
Managing Director and the quality system representative audited the local offices in respect of
the quality system and the departments of the regional office in every respect. The experts
audited the local offices in respect of their particular business areas. The objective of the
auditwas to verify that quality activities and related results comply with the definitions given
in operating procedures and work instructions, and to determine the effectiveness of the quality
system. The internal audit was announced several days before it took place, and all the required
records (see the check-list below) were delivered. The first audits focused on documents
control as a basis for the first stage in implementing the ISO norm. We then had to look closely
into the question of whether the operating procedures were in conformity with actual processes
and were appropriate. Nonconformities were noted and recorded, but it was astonishing that
the quality system worked so well despite the short duration of implementation. We made two
audits before the assessment to ensure that corrective action could be taken, and that approach
was effective in ensuring that AMS Salzburg was in good shape to face the assessment.

Or
(b)(i)Explain the requirements of Environmental Management
(ii)Discuss the benefits of environmental management systems.(8)

Systems.(8)