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TOTAL QUALITY MANAGEMENT GIT DME

INTRODUCTION

1.1 Meaning of Quality

Before we get into the deeper insights of “Total Quality Management”, we must know what
quality is and what significance it has in the field of modern industrial processes. So we have to
get to know the origin and meaning of term “QUALITY”.

The industries are basically of two types. One is The Manufacturing Industry and the other is
said to be The Service Industries. Both the industries have customers who desire products which
fulfil all the needs of the customer and give satisfaction to the customer. The modern customer
gives emphasis on buying the product which actually gives him value for money. So, in general
sense, the basic need that a product must have to satisfy a customer is called Quality.

But this actually isn’t the perfect definition of the term “Quality”. The Quality of any particular
product might be evaluated in many different ways. To seek out the perfect definition of quality,
we must set up a discussion which enlightens us about the basic dimensions of quality.

1.1.1 Dimensions of Quality

According to Garvin (1987), Quality of any product has following 8 dimensions.

1.1.1.1 Reliability

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The Reliability of a product is the extent to which a product can be relied upon. It is how often
the product fails. The complex products, such as many appliances, automobiles, airplanes, will
usually require some repair over their service life. For a car, if it requires repairs after a fixed
period. So till that period is over, that car is said to be reliable. The more frequent a product fails
to deliver the work or service it was supposed to deliver; the lesser is the product’s reliability.

1.1.1.2 Performance

The motive to make any specific product is either to solve a problem or to improve efficiency of
something by doing the job it was made for. Performance of the product is good if it does the job
it was aimed for. If any screwdriver is not able to open or close any screw, it is having no
performance. So, for a product to be a quality product, it must do the intended job.

1.1.1.3 Aesthetics

It is the visual appeal of the product. The visual appeal generally consists of the look, style,
colour, shape, size etc. Everything that contributes to the attractiveness of any product is
classified under the aesthetics dimension of quality. For example, some beverages like coffee,
soft drinks are given an aesthetic appeal to attract customers.

1.1.1.4 Durability

Every product is intended to last for a long time. The longer any product lasts for, the higher is
said to be its durability. The simple example of durability can be taken in the case of automobile
and aircraft tyres. If an automobile tyre has all the looks that makes the customer buys it, but it is
not having durability as its characteristic, the customer is not fool to but it again. So durability of
any product plays an important role in judging any product’s quality.

1.1.1.5 Serviceability

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Every product needs service and repairs after a particular interval. In that specific repair, if the
product is quite hard to repair, then the product is said to have low serviceability. The higher is
the ease with which any product can be repaired, the higher is expected to have serviceability.
The serviceability of a product is also an important dimension of quality of any product.

1.1.1.6 Features

The more things a product can do or the more advantages that a product provides other than the
usual intended job of the product are said to be the features of the product. Usually customers
associate quality with the product which has added features, i.e. those that have features beyond
the basic performance of the competition. For example, a car with good interior looks better than
the car with a moderate one.

1.1.1.7 Conformance to Standards

Every product is made under a specific set of class and every class a set of standards that the
product must fulfil to enter into the market and to pass any examination. The conformance to
standards argues whether a product is made exactly as the maker intended or not. A product
which meets the requirements placed on it is perceived to have a higher level of quality.

1.1.1.8 Perceived Quality

The perceived quality of any product may be interpreted as the reputation that the marketer or the
manufacturer possesses in the mind of the potential customer. This is a very important point if a
new product is introduced in the market by the same company. For example, a Smartphone
manufacturing company called Samsung possesses good reputation in the Indian market. If it
launches a new product in it, the quality of the product perceived in the market will be higher
than the firm that has lesser reputation in the same market.

1.2 Definition of Quality

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The traditional definition of Quality of any product is based on the viewpoint that products and
services must meet the requirement of those who use them.

So the term Quality might be defined as; the fitness of any product for its intended use.

1.3 Aspects of Quality

The quality of any product is generally said to have two aspects namely: quality of design and
quality of conformance. To understand it, let’s discuss something.

All the goods and the services are produced in various grades or levels of quality. These
variations in grades or levels of quality are intentional, and, consequently, the appropriate
technical term is Quality of design. For example, every automobile has been made to transport
any user from one place to other desired place. Although they have this ability, they differ in
size, appearance and performance. These design differences are intentional and are a part of
Quality of design.

Quality of Conformance is the level to which the product meets the specifications required by
the design. It is influenced by various factors viz. the manufacturing process chosen, the training
and the supervision of the workforce etc.

1.4 Evolution of TQM and the Other Quality Management


Techniques

When we inspect very carefully, it is found that definition of the quality is more associated with
the Conformance aspect of quality than the Design aspect of quality. This is in part due to the
lack of formal education in most of the designers and engineers in the field of quality
engineering methodology. This leads to less focus on customer, and more on conformance-to-
specifications” approach to quality.

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This, eventually, results in the product quality being approached more from the view of
conformance to specifications rather than complete fitness-for-use. This avoids the design aspect
of quality which makes the actual quality level drop, even if the product is produced to standards.

That is why various other studies have been done to dig out the methods to improve the design
aspects of Quality. This is the main reason why TQM, SPC, and many other methods to improve
the both aspects of quality equally.

1.5 Managing for Quality

Quality management is the process of identifying and administering the activities needed to
achieve the quality objectives of an organisation. It mainly encompasses these three parts:

1. Quality Planning

2. Quality Control

3. Quality Improvement

Quality Planning mainly consists of these basic works:

- Establish Quality goals

- Identify customers

- Discover Customer needs

- Develop product features etc.

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Quality Control has following activities:

- Choose control subjects

- Set goals

- Create a sensor

- Measure Actual performance etc.

Quality improvement consists of:

- Prove the need

- Identify projects

- Organize project teams

- Diagnose the causes

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Chapter II

Introduction to Total Quality Management

2.1 TQM Definition

Total Quality Management (TQM) is an enhancement to the traditional way of doing business. It
is a proven technique to guarantee survival in world-class competition. Only by changing the
actions of the management will the culture and actions of an entire organization be transformed.
Tam is for the most part Common Sense. Analyzing the three words, we have

 Total – made up of the whole

 Quality – Degree of excellence a product or service provides

 Management – Act, art, or manner of handling, controlling, directing etc.

Therefore, TQM is the art of managing the whole to achieve excellence. The golden rule is a
simple but effective way to explain it: Do unto others as we would have them do unto us.

TQM is defined as both a philosophy a set of guiding principles that represent the foundation of
a continuously improving organization. It is the application of quantitative methods and human
resources to improve all the process within an organization and exceed customer needs now and
in the future. TQM integrates fundamental management techniques, existing improvement
efforts, and technical tools under a disciplined approach.

Total Quality Management (TQM) is an approach that organizations use to improve their internal
processes and increase customer satisfaction. When it is properly implemented, this style of

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management can lead to decreased costs related to corrective or preventative maintenance, better
overall performance, and an increased number of happy and loyal customers.

However, TQM is not something that happens overnight. While there are a number of software
solutions that will help organizations quickly start to implement a quality management system,
there are some underlying philosophies that the company must integrate throughout every
department of the company and at every level of management.

2.2 Basic Approach of Total Quality Management

TQM basically runs on a six concepts. These concepts are:

1. A committed and involved management to provide long term top-to-bottom


organisational support

2. An unwavering focus on the customer, both internally and externally

3. Effective involvement and utilization of the entire work force

4. Continuous improvement of the business and production process

5. Treating Suppliers as partners

6. Establish performance measures for the processes

These concepts outline an excellent way to run an organisation. A brief paragraph on each of
them is given here.

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1. Management must participate in the quality program. A quality council must be


established to develop a clear vision, set long-term goals and direct the program. Quality
goals are included in the business plan. An annual quality improvement program is
established and involves input from whole work force. Managers participate on quality
improvement teams and also act as coaches to other teams. TQM is a continual activity
that must be entrenched in culture – it is not a one-shot program. TQM must be
communicated to all people.

2. . The key to an effective TQM program is its focus on the customer. An excellent place to
start is by satisfying the internal customers. We must listen to the “voice of the customer”
and emphasise design quality and defect prevention. “Do it right the first time’ and then
every other time”, is the best approach to it.

3. TQM is an organisational wide challenge that is everyone’s responsibility. All the


personnel must be trained and knowing every point in TQM, statistical process control
(SPC), and other appropriate quality improvement skills so that they can effectively
participate in the project teams. Including internal customers and for that matter, internal
suppliers on the project teams is an excellent approach. Those affected by the plan must
be involved in its development and implementation. They understand the process more
than anyone else. Changing behaviour is the goal. People must not only come to work to
do their jobs, but also to think about how to improve their jobs.

4. There must be a continual striving to improve all business and production processes.
Quality improvement projects, such as on-time delivery, order entry efficiency, billing
error rate, customer satisfaction, cycle time, scrap reduction, and supplier management,
are good places to begin. Techniques like SPC, benchmarking, quality function
deployment, ISO 9000, and designed experiments, are excellent for problem solving.

5. On the average 40% of the sales dollar is purchased product or service; therefore the
supplier quality must be outstanding. A partnering relationship rather than an adversarial
one must be developed. Both parties have as much to gain and to lose based on the

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success or the failure of the product or the service. The focus should be on the quality and
life cycles rather than price.

6. Performance measures such as the uptime, percent nonconforming, absenteeism, and


customer satisfaction should be determined for each functional area. These measures
should be posted for everyone to see. Quantitative data are necessary to measure the
continuous quality improvement activity.

The table below tells about the changes that must be made to implement the TQM on any
business.

Table 2.1 New and Old Cultures

Quality Element Previous State TQM

Definition Product oriented Customer oriented

Priorities to quality Second to service and cost First among equals of services
and cost

Decisions Short-term Long-term

Emphasis Detection Prevention

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Errors Operations System

Responsibility Quality control Everyone

Problem solving Managers Teams

Manager’s role Plan, assign, control, and enforce Delegate, coach, facilitate,
and mentor

2.2 The 7 Principles of TQM

Whatever other resources we use in our organisation, we should adopt these seven important
principles of Total Quality Management as a foundation for all our activities.

1. Quality can and must be managed

Many companies have wallowed in a repetitive cycle of chaos and customer complaints. They
believe that their operations are simply too large to effectively manage the level of quality. The
first step in the TQM process, then, is to realize there is a problem and that it can be controlled.

2. Processes, not people, are the problem

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If our process is causing problems, it won’t matter how many times we hire new employees or
how many training sessions we put them through. Correct the process and then train our people
on these new procedures.

3. Don’t treat symptoms, look for the cure

If we just patch over the underlying problems in the process, we will never be able to fully reach
our potential. If, for example, our shipping department is falling behind, we may find that it is
because of holdups in manufacturing. Go for the source to correct the problem.

4. Every employee is responsible for quality

Everyone in the company, from the workers on the line to the upper management, must realize
that they have an important part to play in ensuring high levels of quality in their products and
services. Everyone has a customer to delight, and they must all step up and take responsibility for
them.

5. Quality must be measurable

A quality management system is only effective when we can quantify the results. We need to see
how the process is implemented and if it is having the desired effect. This will help we set our
goals for the future and ensure that every department is working toward the same result.

6. Quality improvements must be continuous

Total Quality Management is not something that can be done once and then forgotten. It’s not a
management “phase” that will end after a problem has been corrected. Real improvements must
occur frequently and continually in order to increase customer satisfaction and loyalty.

7. Quality is a long-term investment

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Quality management is not a quick fix. We can purchase QMS software that will help we get
things started, but we should understand that real results won’t occur immediately. TQM is a
long-term investment, and it is designed to help we find long-term success.

2.3 The quality of Total Quality Management

Important aspects of TQM include customer-driven quality, top management leadership and
commitment, continuous improvement, fast response, actions based on facts, employee
participation, and a TQM culture.

2.3.1 Customer-driven quality

TQM has a customer-first orientation. The customer, not internal activities and constraints,
comes first. Customer satisfaction is seen as the company's highest priority. The company
believes it will only be successful if customers are satisfied. The TQM Company is sensitive to
customer requirements and responds rapidly to them. In the TQM context, `being sensitive to
customer requirements' goes beyond defect and error reduction, and merely meeting
specifications or reducing customer complaints. The concept of requirements is expanded to take
in not only product and service attributes that meet basic requirements, but also those that
enhance and differentiate them for competitive advantage.

Each part of the company is involved in Total Quality, operating as a customer to some functions
and as a supplier to others. The Engineering Department is a supplier to downstream functions
such as Manufacturing and Field Service, and has to treat these internal customers with the same
sensitivity and responsiveness as it would external customers.

2.3.2 TQM leadership from top management

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TQM is a way of life for a company. It has to be introduced and led by top management. This is
a key point. Attempts to implement TQM often fail because top management doesn't lead and get
committed - instead it delegates and pays lip service. Commitment and personal involvement is
required from top management in creating and deploying clear quality values and goals
consistent with the objectives of the company, and in creating and deploying well defined
systems, methods and performance measures for achieving those goals.

These systems and methods guide all quality activities and encourage participation by all
employees. The development and use of performance indicators is linked, directly or indirectly,
to customer requirements and satisfaction, and to management and employee remuneration.

2.3.3 Continuous improvement

Continuous improvement of all operations and activities is at the heart of TQM. Once it is
recognized that customer satisfaction can only be obtained by providing a high-quality product,
continuous improvement of the quality of the product is seen as the only way to maintain a high
level of customer satisfaction. As well as recognizing the link between product quality and
customer satisfaction, TQM also recognizes that product quality is the result of process quality.
As a result, there is a focus on continuous improvement of the company's processes. This will
lead to an improvement in process quality.

In turn this will lead to an improvement in product quality, and to an increase in customer
satisfaction. Improvement cycles are encouraged for all the company's activities such as product
development, use of EDM/PDM, and the way customer relationships are managed. This implies
that all activities include measurement and monitoring of cycle time and responsiveness as a
basis for seeking opportunities for improvement.

Elimination of waste is a major component of the continuous improvement approach. There is


also a strong emphasis on prevention rather than detection, and an emphasis on quality at the
design stage.

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The customer-driven approach helps to prevent errors and achieve defect-free production. When
problems do occur within the product development process, they are generally discovered and
resolved before they can get to the next internal customer.

2.3.4 Fast response

To achieve customer satisfaction, the company has to respond rapidly to customer needs. This
implies short product and service introduction cycles. These can be achieved with customer-
driven and process-oriented product development because the resulting simplicity and efficiency
greatly reduce the time involved. Simplicity is gained through concurrent product and process
development. Efficiencies are realized from the elimination of non-value-adding effort such as
re-design. The result is a dramatic improvement in the elapsed time from product concept to first
shipment.

2.3.5 Actions based on facts

The statistical analysis of engineering and manufacturing facts is an important part of TQM.
Facts and analysis provide the basis for planning, review and performance tracking,
improvement of operations, and comparison of performance with competitors. The TQM
approach is based on the use of objective data, and provides a rational rather than an emotional
basis for decision making. The statistical approach to process management in both engineering
and manufacturing recognizes that most problems are system-related, and are not caused by
particular employees.

In practice, data is collected and put in the hands of the people who are in the best position to
analyze it and then take the appropriate action to reduce costs and prevent non-conformance.
Usually these people are not managers but workers in the process. If the right information is not
available, then the analysis, whether it be of shop floor data, or engineering test results, can't take
place, errors can't be identified, and so errors can't be corrected.

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2.3.6 Employee participation

A successful TQM environment requires a committed and well-trained work force that
participates fully in quality improvement activities. Such participation is reinforced by reward
and recognition systems which emphasize the achievement of quality objectives. On-going
education and training of all employees supports the drive for quality. Employees are encouraged
to take more responsibility, communicate more effectively, act creatively, and innovate. As
people behave the way they are measured and remunerated, TQM links remuneration to
customer satisfaction metrics.

2.4 Origins of Total Quality Management

TQM, in the form of statistical quality control, was invented by Walter A. Shewhart. It was
initially implemented at Western Electric Company, in the form developed by Joseph Juran who
had worked there with the method. TQM was demonstrated on a grand scale by Japanese
industry through the intervention of W. Edwards Deming—who, in consequence, and thanks to
his missionary labors in the U.S. and across the world, has come to be viewed as the "father" of
quality control, quality circles, and the quality movement generally.

Walter Shewhart, then working at Bell Telephone Laboratories first devised a statistical control
chart in 1923; it is still named after him. He published his method in 1931 as Economic Control
of Quality of Manufactured Product. The method was first introduced at Western Electric
Company's Hawthorn plant in 1926. Joseph Juran was one of the people trained in the technique.
In 1928 he wrote a pamphlet entitled Statistical Methods Applied to Manufacturing Problems.
This pamphlet was later incorporated into the AT&T Statistical Quality Control Handbook, still
in print. In 1951 Juran published his very influential Quality Control Handbook.

W. Edwards Deming, trained as a mathematician and statistician, went to Japan at the behest of
the U.S. State Department to help Japan in the preparation of the 1951 Japanese Census. The
Japanese were already aware of Shewhart's methods of statistical quality control. They invited

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Deming to lecture on the subject. A series of lectures took place in 1950 under the auspices of
the Japanese Union of Scientists and Engineers (JUSE). Deming had developed a critical view of
production methods in the U.S. during the war, particularly methods of quality control.
Management and engineers controlled the process; line workers played a small role. In his
lectures on SQC Deming promoted his own ideas along with the technique, namely a much
greater involvement of the ordinary worker in the quality process and the application of the new
statistical tools. He found Japanese executive receptive to his ideas. Japan began a process of
implementing what came to be known as TQM. They also invited Joseph Juran to lecture in
1954; Juran was also enthusiastically received.

TQM, in the form of statistical quality control, was invented by Walter A. Shewhart. It was
initially implemented at Western Electric Company, in the form developed by Joseph Juran who
had worked there with the method. TQM was demonstrated on a grand scale by Japanese
industry through the intervention of W. Edwards Deming—who, in consequence, and thanks to
his missionary labors in the U.S. and across the world, has come to be viewed as the "father" of
quality control, quality circles, and the quality movement generally.

Walter Shewhart, then working at Bell Telephone Laboratories first devised a statistical control
chart in 1923; it is still named after him. He published his method in 1931 as Economic Control
of Quality of Manufactured Product. The method was first introduced at Western Electric
Company's Hawthorn plant in 1926. Joseph Juran was one of the people trained in the technique.
In 1928 he wrote a pamphlet entitled Statistical Methods Applied to Manufacturing Problems.
This pamphlet was later incorporated into the AT&T Statistical Quality Control Handbook, still
in print. In 1951 Juran published his very influential Quality Control Handbook.

W. Edwards Deming, trained as a mathematician and statistician, went to Japan at the behest of
the U.S. State Department to help Japan in the preparation of the 1951 Japanese Census. The
Japanese were already aware of Shewhart's methods of statistical quality control. They invited
Deming to lecture on the subject. A series of lectures took place in 1950 under the auspices of
the Japanese Union of Scientists and Engineers (JUSE). Deming had developed a critical view of
production methods in the U.S. during the war, particularly methods of quality control.

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Management and engineers controlled the process; line workers played a small role. In his
lectures on SQC Deming promoted his own ideas along with the technique, namely a much
greater involvement of the ordinary worker in the quality process and the application of the new
statistical tools. He found Japanese executive receptive to his ideas. Japan began a process of
implementing what came to be known as TQM. They also invited Joseph Juran to lecture in
1954; Juran was also enthusiastically received.

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Chapter III

Introduction to Total Quality Management

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