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Introduction to Total Quality Management
Definition of Quality
Dimensions of Quality
Quality Planning
Quality Costs
Basic concepts of Total Quality Management
Historical Review
Need for ISO 9000 and Other Quality Systems
ISO 9000:2008 Quality System- Elements
Implementation of Quality System
Quality Auditing
Introduction to TS 16949, QS 9000
ISO 14000, ISO 18000
ISO 20000, ISO 22000





Made up of whole

Degree of excellence a product
or service provides

Act , art or manner of handling,
controlling, directing , etc.


TQM-Art of managing the whole
to achieve excellence
Definition of TQM:
It is defined as
both a philosophy
and set of guiding
principles that
represent the foundation of a continuously improving



Effective involvement and utilization of entire work force.Focus on customer (internally and externally) 3.7/23/2015 SIX BASIC CONCEPTS OF TQM 1.Establish performance measures for the processes 7/23/2015 5 6 GURUS OF 1: Deming 2: Juran 3: Feigenbaum 7/23/2015 4 :Ishikawa 5: Crosby 6: Shewhart 6 3 .Treating suppliers as partners 6. 4.Commitment and Involvement 2.Continuous improvement (Business and Production) 5.

7/23/2015 DEFINITION OF QUALITY QUALITY Excellent product or service that fulfills or exceeds our expectations Quality can be quantified as follows: If Q>1. Degree .poor . good and excellent(quality) Inherent – permanent characteristic Characteristics – qualitative or quantitative Requirement – need or expectation 7/23/2015 8 4 .Customer has a good feeling about the product or service Q= Quality P= Performance Q=P/E E= Expectations 7/23/2015 7 DEFINITION OF QUALITY IN ISO 9000:2000 It is defined as the degree to which a set of inherent characteristics fulfills requirements.

Features Secondary characteristics.Reputation Past performance and other intangibles. such as exterior finish 9. average time of the unit to fail 5. such as the courtesy of the dealer 8. such as the brightness of the picture 2.Conformance Meeting specifications or industry standards.Reliability Consistency of performance over time. includes repair 6.Service Resolution of problems and complaints. such as remote control 3. Performance Primary product characteristics. such as being ranked first -------------------------------------------------------------------------------------------7/23/2015 9 QUALITY PLANNING The following are the important steps for quality planning.Durability Useful life. ease of repair 7.--------------------------------------------- Dimension Meaning and Example ---------------------------------------------------------------------------------------------------------------1. Establishing quality goals Identifying customers Discovering customer needs Developing product features Developing process features Establishing process controls and transferring to operations 7/23/2015 10 5 .Aesthetics Sensory characteristics. added features.7/23/2015 DIMENSIONS OF QUALITY ---------------------------------------------------------------------------------------------------------------.Response Human – to – human interface. workmanship 4.

we need to plan for perfection. Supervisory and worker level(self-control & triple role concept) 2. not just meeting product specifications. we need to plan for value. For same products . Multifunctional systems(MIS. Major programmes 7/23/2015 12 6 . Planning for product quality must be based on meeting customer needs.7/23/2015 IMPORTANT POINTS TO BE NOTED WHILE QUALITY PLANNING Business. earn returns much higher than their competitors. Functional level(marketing) 3. For other products. Quality and Market share each has a strong separate relationship to profitably. having larger market share and better quality. 7/23/2015 11 QUALITY PLANNING ROAD MAP It can be applied to the following: 1.HR) 4.

7/23/2015 JURAN’S QP ROAD MAP 7/23/2015 13 QP MAPPING 7/23/2015 14 7 .

. Cost of conformance (Cost of achieving good quality) Cost of non .7/23/2015 QUALITY COSTS QUALITY COSTS Falls into two categories….conformance (Cost associated with poor quality) 7/23/2015 15 CATEGORIES OF QUALITY COSTS 7/23/2015 16 8 .

design.receiving or incoming inspection . Continuous improvement efforts. quality administration. production and shipping  Prevention Costs . development. checking or evaluating a product or service at various stages during the delivery process of that product or service to the customer.7/23/2015 COST OF GOOD QUALITY PREVENTION COSTS:  Planned cost by an organization – to ensure no errors are made at any of the various stages during the delivering process of that product or service to the customer  Delivery process . inspection activities . market . field testing and preventive maintenance. quality administration salaries . internal product audit .  Appraisal Costs. process control. inventory counts . 7/23/2015 17 COST OF GOOD QUALITY APPRAISAL COSTS:  Cost of verifying . supplier evaluation and audit reports 7/23/2015 18 9 .

7/23/2015 COST OF POOR QUALITY Cost incurred by the company because  the product or service did not meet the requirements  the product had to be fixed or replaced  the service had to be repeated 7/23/2015 19 INTERNAL FAILURES COSTS -failures that are found before the product or service reaches the customer -Internal failure costs include: Scrap Rework Extra inventory Process failure Process downtime Process-downgrading 7/23/2015 20 10 .

External failure costs include: Customer complaint costs Customer follow up and field services Product return costs Warranty claims 7/23/2015 21 HIDDEN QUALITY OF COSTS(QOC) Customer dissatisfaction costs Lost reputation costs Customer incurred costs 7/23/2015 22 11 .Occurs when the customer finds the failure .7/23/2015 EXTERNAL FAILURES COSTS .Do not include any customer’s personal costs .

The sum of curves 1 & 2 (Total cost of quality per good unit of product) 7/23/2015 24 12 . cost=0 and rises if perfection is approached) 3. Failure costs (FC=0 if product is 100% good or FC=infinity if product is 100% defective) 2.7/23/2015 TOTAL COST OF QUALITY Prevention + Appraisal + Internal failures + External failures Actual cost of a product or service What reduced cost would be if there were no possibility of service.failures or defects in their manufacture 7/23/2015 23 ANALYSIS OF QUALITY COSTS There are three curves 1. Costs of appraisal + prevention (100% defective .

7/23/2015 Economics of Quality of conformance 7/23/2015 25 ANALYSIS TECHNIQUES FOR QUALITY COSTS Two common techniques: Trend Analysis Pareto Analysis 7/23/2015 26 13 .

Past levels It provides information for: -long range planning -instigation and assessment of quality improvement programs Taken as Quarterly reports 7/23/2015 27 TREND ANALYSIS 7/23/2015 28 14 .7/23/2015 TREND ANALYSIS Present level Vs.

7/23/2015 PARETO ANALYSIS Item values are located as bars in descending order Left – items (substantial amount of the total)-vital few Right – small amount of total-trivial many 7/23/2015 29 BAR CHARTS AND PIE CHARTS To compare similar item of a competing organization 7/23/2015 30 15 .

Man used Sharp Tools to earn his livelihood • Middle age .Romig – Quality of acceptance instead of 100% inspection .7/23/2015 HISTORICAL REVIEW • Stone Age.G.Shewhart in Bell Laboratories.A.US industry managers failed to understand its value 7/23/2015 32 16 . 7/23/2015 31 HISTORICAL REVIEW 1924 . •Industry revolution – concept of specialization of labor was introduced.Skilled craftsman built Pyramids in Egypt and the Craftsman trained family members as Apprentices. 1942 – H.Statistical quality control chart– developed by W.Dodge and H.F.

Juran gave lectures on Statistical methods to Japanese Engineers 1960s – first Quality circle was formed In 1970s – US industries started practicing these concepts 33 HISTORICAL REVIEW 7/23/2015 In middle of 1980 – Concepts of TQM were published In late 1980s – Statistical process control was emphasized MALCOM BALDRIGE NATIONAL QUALITY AWARD – to measure TQM – First award Genichi and Taguchi – Concept of parameter and tolerance design – Design of Experiments(DOE) as important quality tool 34 17 .Edwards Deming and Joseph .ASQ) 1950 –W.M.7/23/2015 HISTORICAL REVIEW 7/23/2015 1946 – American Society for Quality Council was formed (recent name .

processes and services are fit for their purpose..7/23/2015 HISTORICAL REVIEW  Japanese – DEMING AWARD – HIGHEST at global level  In 1996 – Saturn Automobile ranked first in customer satisfaction  ISO 9000 – worldwide model for a quality system  ISO 14000 . guidelines or characteristics that can be used consistently to ensure that materials.document that provides requirements. specifications... 7/23/2015 35 NEED FOR ISO 9000 AND OTHER QUALITY SYSTEMS What is a standard? .worldwide model for environmental management systems & continues with new standards.. 7/23/2015 36 18 .. products..

 Founded on 23 February 1947. the organization promotes worldwide proprietary. industrial and commercial standards.  Head Quarters .International Organization for Standardization 7/23/2015  ISO.Geneva.7/23/2015 NEED FOR A QUALITY SYSTEM Customer needs – Good Quality product at a lower cost An organisation’s role – To satisfy the customer’s needs – proper utilization of resources and ideas with cost reduction in mind QUALITY MONITORING SYSTEM . Switzerland and as of 2013 works in 164 countries  Over 19 500 International Standards 38 are published 19 .sets standards of quality 7/23/2015 37 ISO . is an international standardsetting body composed of representatives from various national standards organizations.

7/23/2015 POPULAR STANDARDS 7/23/2015 39 STANDARDS IN ACTION 7/23/2015 40 20 .

Installation & Servicing ISO 9003  Inspection & Testing ISO 9004  Provides guidelines on the technical. 7/23/2015 42 21 . administrative and human factors affecting the product or services. Development. Production.7/23/2015 STANDARDS IN ACTION 7/23/2015 41 ISO 9000 STANDARDS ISO 9001  Design. Installation & Servicing ISO 9002  Production.

 Value for money.  Increased profitability  Improved corporate image  Access to global market  Growth of the organization  Higher morale of employees 7/23/2015 44 22 .  Higher productivity.  Provide confidence to the purchasers that the intended quality is being or will be achieved in the delivered product or service provided.  Customer satisfaction. 7/23/2015 43 BENEFITS OF ISO 9000 STANDARDS  Achievement of international standard of quality.  Provide confidence to its own management that the intended quality is being achieved.7/23/2015 OBJECTIVES OF ISO 9000 STANDARDS Each organization should:  Achieve and sustain the quality of the product or service produced so as to meet implied needs continuously.

7/23/2015 CLAUSES (ELEMENTS) OF ISO 9000 (During the year 1987) 7/23/2015 45 CLAUSES (ELEMENTS) OF ISO 9000:2008 (During the year 2000) 7/23/2015 46 23 .

Internal Audit 12. Install the New system 11. Preparation of the Document 10. Appoint an Implementation team 5. Pre – Registration 14.Top management Commitment 2. Awareness 4.7/23/2015 IMPLEMENTATION OF QUALITY SYSTEM ISO 9000:2008 Requirements: 1. Review the Present System 9. Training 6. Time Schedule 7. Select Element Owners 7/23/2015 47 IMPLEMENTATION OF QUALITY SYSTEM ISO 9000:2008 Requirements: 8. Management Review 13. Appoint a Management Representative 3. Registration 7/23/2015 48 24 .

7/23/2015                MODULE . ISO 22000 7/23/2015 49 “Whatever you Do . ISO 18000 ISO 20000. Demonstrate ” 7/23/2015 50 25 . Whatever you Document .I OUTLINE Introduction to Total Quality Management  Definition of Quality  Dimensions of Quality  Quality Planning Quality Costs  Basic concepts of Total Quality Management Historical Review  Need for ISO 9000 and Other Quality Systems  ISO 9000:2008 Quality System.Elements  Implementation of Quality System  Documentation Quality Auditing Introduction to TS 16949. Document it. QS 9000 ISO 14000. Do it.

.......Who .....Why .... Where PROCEDURES WORK INSTRUCTIONS RECORDS 7/23/2015 .... When .7/23/2015 DOCUMENT PYRAMID POLICY ............ What .How .Evidence 51 QUALITY SYSTEM AUDITING “A systematic and independent examination to determine whether quality activities and related results comply with planned arrangements and whether these arrangements are implemented effectively and are suitable to achieve the objectives” 7/23/2015 52 26 .......

Reporting the audit results 4. To provide an evidence for effectiveness of the quality system implementation for certification 7/23/2015 53 STAGES OF AUDIT 1. To provide an opportunity to improve the quality systems. To determine the effectiveness of the quality system implemented in achieving quality objectives.Planning and Preparation for the audit 2.Corrective actions and follow up 7/23/2015 54 27 .7/23/2015 OBJECTIVES OF AUDIT 1. 3. 4. 2.Execution of the Audit plan 3. To meet regularity and/or statutory requirements.

Opening meeting Gathering information Record observations and non conformances Evaluate the significance of non conformances Assess the compliance to the requirements Prepare the document for findings Closing meeting and review 7/23/2015 55 TYPES OF AUDITS QUALITY AUDITS INTERNAL AUDIT FIRST PARTY AUDIT 7/23/2015 EXTERNAL AUDIT SECOND PARTY AUDIT THIRD PARTY AUDIT 56 28 .7/23/2015 How to conduct an audit? According to Quality manual.

7/23/2015 TYPES OF AUDITS FIRST PARTY AUDIT • Independent self assessment system looking at its own activities for continuous improvement • Can be carried out within a particular area or function within an organization SECOND PARTY AUDIT • Supplier quality assurance audits • To ensure the purchasing organisations . level of confidence and suppliers capabilities THIRD PARTY AUDIT • Conducted by recognized certifying agency or a statutory body • Certificate of Quality Assurance will be issued 7/23/2015 57 TYPES OF AUDITS(BASED ON THE AREA OF COVERAGE OF AUDIT)  System audit – to evaluate and ensure the quality of the supplied products  Process audit – to inspect the processes involved  Product audit – Conducted before delivery of the product to check specifications and customer needs  Compliance audit – to establish the extent to which the documented system is implemented and followed by the employees 7/23/2015 58 29 .