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Ba9203 TOTAL QUALITY Management

Question Paper with Solution


UNIT 1
PART A
1. Differentiate Vision and Mission Statements (April / May 2011 )
Definition:
A short declaration of what an
organization aspires to be in the
future. It is an ideal that an
organization continually strives
to achieve. It is timeless,
inspirational and becomes deeply
shared with the organization.
Eg:
To continuously enrich
knowledge base for practioners in
mobility industry and institutions
in the service of
humanity.(Society of Automotive
Engineers.

Definition:
The mission statement answers the following questions:

Who we are?

Who are our customers?

What we do?

How we do it?
The mission gives the guide map, milestones for achieving the vision.
Eg Mission statement of ITC ltd:

Concern for the ultimate customers- millions of customers

Concern for the intermediate customers- the trade

Concern for the suppliers the sources of raw


materials and ancillaries

Concern for the employees the most valued asset.

Concern for the competitors wishing them well as healthy competition


ultimately benefits the
customers

Concern for the shareholders- the investing public

Concern for the national aspiration India s future.

2. State the Critical dimensions of Service Quality (April / May 2011 )


Service Dimensions
a. Reliability
b. Responsiveness
c. Competence
d. Access
e. Courtesy
f. Communication
g. Creditability
h. Understanding
i. Security
j. Tangibles
3. What is Quality Policy (June 2010)
Quality Policy Statement
Its a guide for everyone in the organization as to how they provide products and service to the
customers. It is written by the CEO with the feedback from the workforce and be approved by the
quality council. It is important requirement of ISO 9000 quality systems
Eg : Quality policy of Xerox Company.
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 services that fully satisfy
their requirements. Quality is the job of every employee.
4. What are the Obstacles of Total Quality Management (January 2011)
a. Lack of Management commitment
b. Inability to change organizational culture
c. Improper Planning
d. Lack of continuous training and Education

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e.
f.
g.
h.
i.

Incompatible organizational structure and isolated individuals and departments


Ineffective measurement techniques and lack of access to data and results
Paying inadequate attention to internal and external customers
Inadequate use of empowerment and teamwork
Failure to continually improve

5. Is Quality a source of value ?(Nov / Dec 2011)


Value-based view. Quality depends on the amount the customer is willing to pay for it
It is Sustained Performance and Customer Responsiveness ( Microsoft)
Thus Quality is The ability of a product or service to meet the customer needs.
6. What is quality control (June 2010)

Quality Control (QC) is a system of routine technical activities, to measure and control the
quality
of the inventory as it is being developed. The QC system is designed to:
(i) Provide routine and consistent checks to ensure data integrity, correctness, and
completeness;
(ii) Identify and address errors and omissions;
(iii) Document and archive inventory material and record all QC activities.
7. What is a mission statement?
Definition:
The mission statement answers the following questions:
Who we are?
Who are our customers?
What we do?
How we do it?
The mission gives the guide map, milestones for achieving the vision.
8. What do you mean by customer perceived Quality( January 2011)
Manufacturing Dimensions
a. Performance
b. Features
c. Reliability
d. Conformance
e. Durability
f. Serviceability
g. Aesthetics
h. Perceived quality
9. What is cost of quality(January 2012)
Quality cost are defined as those costs associated with the non-achievement of products / service
quality as defined by the requirements established by the organization and its contract with the
customer.
Quality cost is the cost of poor products or services
10. Define Quality
Fitness for intended use(Joseph Juran)
Conformance to specifications. (Philip Crosby).
ISO definition of quality is as follow
Quality is the totality of characteristics of an entity that bear on its ability to satisfy stated and
implied needs.
11. Distinguish between internal customer and external customer.

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An external customer exists outside the organization and can be defined in many ways- user, buyer and
influencer. He generally falls into one of these three categories: current, prospective or lost customer.
Every function within the organization- engineering, production, order processing etc; has an internal
customer. Every person is considered a customer of the preceding operation. For example, manufacturing
is a customer for purchasing and dispatching is a customer for packaging.
12. What are the three levels of quality in the Kano model of customer satisfaction?
Basic quality
Performance quality
Excitement quality
The products corresponding to these three levels were termed as Dissatisfies, satisfiers and
delighters/ exciters respectively in Kanos model.
13. What is the importance of customer retention?
It costs a company six times more to sell a product to a new customer than to sell to an existing
one.
Loyal customers generate more revenue and are also cheaper to maintain.
Customer loyalty facilitates cross selling/ up selling of a companys other products and services
and also acts as an effective barrier to the entry of competition.
14. What are the major dimensions of product quality?
Performance
Features
Usability
Conformance to standards/ specifications
Reliability
Durability
Maintainability etc;
15. What is Quality Equation ?
Quality can be quantified as follows
Q=P/E
Where Q is quality
P is Performance
E is Expectations
Q 1.0 then the quality of the product is good.

16. What are the elements of Quality Cost?(April / May 2011)


Cost area
Costs of control (Costs of
conformance)

Costs of failure of control


(Costs of non-conformance)

Description
Prevention
Arise from efforts to keep defects from
costs
occurring at all
Appraisal
Arise from detecting defects via inspection,
costs
test, audit
Internal failure Arise from defects caught internally and dealt
costs
with by discarding or repairing the defective
items
External
Arise from defects that actually reach
failure costs
customers

17. What are internal failure costs?


These are the costs required to identify, repair, replace or dispose off defective products/ services prior to
delivery to the customer.

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18. What is appraisal cost ? give examples.


The Cost incurred in assessing that the products / services conform to the requirements
Appraisal cost relate to testing, execution and examination to assess whether the specified quality is being
maintained
19. Why should suppliers be treated as partners?
Costs due to inferior materials/components from suppliers increase costs in the later stage of production.
Suppliers themselves are part of the whole system and hence should be treated as long-term partners.
PART B
1. Explain the basic concepts and Characteristics of TQM?
ISO Total Quality Management (TQM) is the management approach of an organization,
centered on quality, based on the participation of all its members and aiming at long term success
through customer satisfaction and benefits to all members of the organization and society.
Indian Statistical Institute
TQM is the integrated organizational approach in delighting customers both
internal and external by meeting their exceptions on a continuous basis through everyone
involved with the organization working on continuous improvements in all products, services and
process along with proper problem solving methodology
Characteristics of TQM
1. TQM is customer oriented
2. TQM is long term commitment for continuous improvement of all process
3. TQM is team work
4. TQM requires the leadership of the top management and continuous involvement.
5. TQM is a strategy of continuous improving performance at all levels and in all areas of
responsibility.
6 Basic Concepts of TQM
Top Management commitment Participation, Complete involvement and
communication of the TQM Programme.
Focus on customer Achieving Cust Satisfaction is the heart of TQM.
Effective involvement and utilization of the entire work force Principle of employees
involvement "or Respect for People Each person is responsible for the quality of the
work they do.
Continuous Improvement : TQM is based on progress and improvement. It is the way to
make better use of the company s total quality resources.
Treat suppliers as partners
Establishing performance measures for the processes:
Quantitative data to measure to the continuous quality improvement.
Performance measures like Productivity, sales turnover, Absenteeism, customer
satisfaction etc.
2. Discuss in detail the benefits of TQM?

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ISO - Total Quality Management (TQM) is the management approach of an


organization, centered on quality, based on the participation of all its members and
aiming at long term success through customer satisfaction and benefits to all members of
the organization and society.
Tangible Benefits

Intangible Benefits

Improved Product Quality

Improved Employee Participation

Improved Productivity

Improved team work

Reduced quality costs

Improved Working relationships

Increased market and customers

Improved Customer satisfaction

Increased profitability

Better company image

Reduced employee grievances

Enhancement of job interest


Enhanced problem solving capacity

Obstacles to TQM
Lack of Management commitment
Inability to change organizational culture
Improper Planning
Lack of continuous training and Education
Incompatible organizational structure and isolated individuals and departments
Ineffective measurement techniques and lack of access to data and results
Paying inadequate attention to internal and external customers
Inadequate use of empowerment and teamwork
Failure to continually improve
3. What is vision, mission & policy statement? Give examples each(January 2011)
Quality statements
Three elements of quality statements.
Vision statement
Mission statement
Quality Policy statement
Vision statement
It is the short declaration of what an organization aspires to be tomorrow
The vision should be coined in such a way that the leaders and employees working in the
organization should work towards the achievements of vision statements
Eg:
To continuously enrich knowledge base for practioners in mobility industry and
institutions in the service of humanity.(Society of Automotive Engineers.
Mission statement
It describes the functions of the organization. The mission statement answers the following
question
1. Who we are ?

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2. Who are the customers?


3. And how we do it?
Eg Mission statement of ITC ltd:
Concern for the ultimate customers- millions of customers
Concern for the intermediate customers- the trade
Concern for the suppliers the sources of raw materials and ancillaries
Concern for the employees the most valued asset.
Concern for the competitors wishing them well as
healthy competition ultimately
benefits the
customers
Concern for the shareholders- the investing public
Concern for the national aspiration India s future.
Quality Policy Statement
Its a guide for everyone in the organization as to how they provide products and service to the
customers.
It is written by the CEO with the feedback from the workforce and be approved by the quality
council
It is important requirement of ISO 9000 quality systems
Eg : Quality policy of Xerox Company.
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 services that fully
satisfy their requirements. Quality is the job of every employee.
4. Explain the various techniques used to analyse quality cost. (January 2012)
Quality cost are used by management in its pursuit
o Quality Improvement
o Customer Satisfaction
o Market Share
o Profit Enhancement.
o Helps to Identify the hidden and buried cost
When Quality Cost is too high, It is sign of management ineffectiveness, which affects the
organization competitive position.
Analysis
1) The most common used technique for analyzing the quality cost are trend and pareto analysis.
2) The objective of these techniques to determine opportunities for quality improvements.
Trend Analysis
1. A trend analysis or a trend graph is a planning tool that provides information for a long range
planning . It also provides information for the investigation and assessment of quality
improvement programmes.
2. In this context trend analysis compares the present quality cost levels to past levels.
Characteristic of Trend Analysis
1) Trend analysis can be established by cost category , by sub category, by product, by measurement
basis, by department and by combinations.
2) Depending on the purpose of the analysis, time scales of this trend graphs may be by graph by
month or quarter.
3) Input data for trend analysis compares the present quality cost levels to past levels

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Pareto Analysis
It is method of classifying items, events or activities according to the relative importance.
A Pareto Diagram is a diagnostic tool commonly used for separating the vital few causes the
account for a dominant share of quality loss.
It was named after Wilfredo pareto who devised the tool.
It is based on the Pareto Principle , Which states that a few of defects accounts for the most of the
effects.
It is otherwise called as 80/20 rule or ABC analysis .It means only 20%of defects amounts to 80%
of its effects.
How to use
1. A wide range of situations where one need to priorities problems based on its relative importance.
2. It is Cost analysis tool.
3. Pareto Diagrams can be established for quality cost by operator, by machine, by product line, by
non conformity , by category, by element etc.
4. It is risk management technique.

Construction of the Pareto Diagram


1.
2.
3.
4.
5.
6.
7.

Obtain the data.


Arrange them in ascending order.( largest to smallest).
Calculate the percentages
Compute the cumulative percentage
Draw the bar chart with two vertical axes
Draw the bar above each item represents the causes of each categories
Plot the cumulative percentage line.

Elements of Quality Cost:

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Cost area

Costs of control (Costs of


conformance)

Costs of failure of control (Costs of


non-conformance)

Description

Prevention costs Arise from efforts to keep defects from occurring at all
Appraisal costs

Arise from detecting defects via inspection, test, audit

Internal failure
costs

Arise from defects caught internally and dealt with by


discarding or repairing the defective items

External failure
Arise from defects that actually reach customers
costs

5. Discuss the TQM frame work for an Indian Manufacturing service industry(January 2011)

Guru
Shewhart
Deming
Juran
Feigenbaum
Ishikawa
Crosby
Taguchi
Tools and Techniques
Benchmarking
Quality Management Systems
Environmental Management Systems
Quality Function Deployment
Quality by design
Failure Mode Effect Analysis

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Total Productive Maintenance


Statistical Process Control
Taguchi Quality Engineering
Principles and Practices
Approach : Continuous Process Improvement
People and Relationships: Leadership, Customer Statisfaction, Employee Involvement, Supplier
partnership

6. Discuss in detail the eight dimensions of quality with examples.(Nov / Dec 2011)
Explain the factors that influence end user perceptions (June 2010)
Explain the dimensions of Product Quality. (April / May 2011)
Define the Quality based on the following (April / May 2011)
a. Transcendental
b. Product
c. User
d. Manufacturing
e. Value based
f. ASQ
Introduction to Quality
Conformance to Specifications
Technique to guarantee survival in world class competition
Sustained Performance and Customer Responsiveness ( Microsoft)
Thus Quality is The ability of a product or service to meet the customer needs.
Definitions Quality
Deming : Quality is a predictable degree of uniformity and dependability, at low cost and
suited to the market.
Juran : Quality is fitness for use.
Taguchi : Quality is the (minimum)loss imparted by a product to society from the time the
product is shipped.
Feigenbaum :Quality is, a way of managing the organization.
Philip Crosby : Quality is conformance to requirements.
ISO definition of quality is as follow
Quality is the totality of characteristics of an entity that bear on its ability to satisfy stated and
implied needs.

Dimensions of TQM
Manufacturing Dimensions
Performance
Features
Reliability
Conformance
Durability
Serviceability
Aesthetics

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Perceived quality

Performance
Primary product characteristics or the attributes of the product such as brightness
Features
Secondary characteristics of the Product, added features Remote control.
Conformance
Meeting the specifications or industry standards.
Reliability
Consistency of the performance over time, average for a unit to stop functioning ( fail)
Durability
Useful life, includes repair.
Service
Resolution of the problems and complaints ease of repair.
Response
Human to human interface such as courtesy of the dealer.
Aesthetics
Sensory characteristics such as exterior finish.
Reputation
Past performance and other intangibles such as being ranked firs
Service Dimensions
Reliability
Responsiveness
Competence
Access
Courtesy
Communication
Creditability
Understanding
Security
Tangibles
Reliability
Consistency of performer and dependability. Ability to perform the promised service
dependably and accurately
Responsiveness
Willingness or readiness to help and provide prompt service
Competence
Possession of skills and knowledge required to perform the service.
Access
Approachability and ease of contact.
Courtesy
Politeness, Respect, Consideration , clean and neat appearances. Caring and
individualized attention.
Communication &Understanding

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Education and informing customers in language they can understand, listening to


customers.
Credibility
Trustworthiness, belief, Dependability.
Security
Freedom from danger and risk. Providing assurance.
Tangibles
The physical evidence of service. Physical facilities, equipment and appearance of
personnel

Five Views of Quality


Garvin (1984) has explored how different people perceive quality. He describes quality from five
different perspectives:
1. Transcendental view. Quality is something we can recognize but not define.
2. User view. Quality is fitness for purpose.
3. Manufacturing view. Quality is conformance to specification.
4. Product view. Quality is tied to inherent product characteristics.
5. Value-based view. Quality depends on the amount the customer is willing to pay for it.
7. Explain the cost of quality (June 2010), (January 2012)
Cost Of Quality.
The Value of Quality must be based on its ability to contribute to profits. Quality related cost are
the cost incurred by an organization to ensure that the products / services it provides conform to
customer requirements .
Definition:
Quality cost are defined as those costs associated with the non-achievement of products / service
quality as defined by the requirements established by the organization and its contract with the
customer.
Quality cost is the cost of poor products or services.
When Quality Cost is too high, It is sign of management ineffectiveness, which affects the
organization competitive position.
Prevention cost:
The cost that are incurred on preventing a quality problem from arising.

Marketing / Customer/ User


Product / Service / Design Development
Purchasing
Operations
Quality Administration
Appraisal Cost:
The Cost incurred in assessing that the products / services conform to the requirements

Purchasing Appraisal Cost

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Operation ( Manufacturing or Service ) Appraisal Cost


External Appraisal Cost
Review of test and inspection data:
Miscellaneous quality evaluation:
Internal Failure Cost :
Cost arise due to internal failures.

Product or Service Design Failure Cost:


Purchasing failure cost
Operations cost
External Failure Cost
The cost incurred due to the non conformance of the products or services after delivery of
products to the customer.

8.

What are the avenues of getting customer feedback? How can a company use these
feedbacks to business improvement? (Nov / Dec 2011)
Customer Feedback :
Customer feedback is required for the following reasons
1. To discover customer dissatisfaction
2. To identify the customer needs
3. To discover relative priories of quality
4. To compare performance with competition
5. To determine opportunities for improvement.
Tools of Customer Complaints:
Customer feedback has to been given importance it drives to the new product development.
Help in identifying and analyzing the errors ,

Comment card
Customer Questionnaire
Focus Groups
Toll Free telephone
Customer Visit
Report Card
Internet & Computers
Employee Feedback.
Mass customization

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9. Compare Old Quality versus New Quality in the following aspects : Products, Control ,
Inspectors and Technical. (April / May 2011)
Quality Element
Definition
Priorities
Decisions
Emphasis
Errors
Responsibility
Problem Solving
Procurement
Managers Role

Old Quality
Product Oriented
Second to service and cost
Short term
Detection
Operations
Quality Control
Managers
Price
Plan, assign , control and enforce

New Quality
Customer oriented
First among service and cost
Long term
Prevention
System
Everyone
Teams
Life cycle cost, partnership
Delegate, coach , facilitate and
mentor

10. Describe the TQM implementation in a Manufacturing company(April / May 2011)


Total Quality Management
ISO - Total Quality Management (TQM) is the management approach of an organization, centered on
quality, based on the participation of all its members and aiming at long term success through customer
satisfaction and benefits to all members of the organization and society
Characteristics of TQM
1.
2.
3.
4.
5.

TQM is customer oriented


TQM is long term commitment for continuous improvement of all process
TQM is team work
TQM requires the leadership of the top management and continuous involvement.
TQM is a strategy of continuous improving performance at all levels and in all areas of
responsibility.
6 Basic Concepts of TQM

Top Management commitment Participation, Complete involvement and communication of the


TQM Programme.
Focus on customer Achieving Cust Satisfaction is the heart of TQM.
Effective involvement and utilization of the entire work force Principle of employees
involvement "or Respect for People Each person is responsible for the quality of the work
they do.
Continuous Improvement : TQM is based on progress and improvement. It is the way to make
better use of the company s total quality resources.
Treat suppliers as partners
Establishing performance measures for the processes:
Quantitative data to measure to the continuous quality improvement.
Performance measures like Productivity, sales turnover, Absenteeism, customer
satisfaction etc.

www.stmarysmba.co.cc