TQM - Unit 2

Total Quality Management
Unit: 2
Contribution of Quality Gurus
Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
Contents of the unit
▪ Deming’s Contribution to quality
▪ Deming’s 14 points of quality Management
▪ Deming’s chain reaction
▪ Ishikawas fish bone diagram
▪ Taguchi’s loss function
▪ Jurans contribution
▪ Jurans quality trilogy
▪ Future of TQM
Learning Objectives
At the end of the class one should be able to
▪ Understand Deming’s contribution to quality
▪ Describe Deming’s 14 points of quality management
▪ Deming’s Chain reaction
Who is guru?
▪ “A Guru is a guide who is considered to have attained
complete insight.”
▪ “A guru is a good person, a wise person and teacher.
▪ A quality guru should be all of these, plus have a concept
and approach to quality within business that has made a
major and lasting impact.”
Quality Gurus
▪ W Edwards Deming
▪ Joseph Juran
▪ Philip Crosby
▪ Shigeo Shingo
▪ Kaoru Ishikawa
▪ Yoshio Kondo
▪ Taguchi
Three groups of gurus
Who was W. Edwards Deming
• Dr. W. Edwards Deming is known as the father of the Japanese
post-war industrial revival and was regarded by many as the
leading quality guru in the United States. He was born on 14-10-
1900 and he passed away in 20-12-1993.
• His expertise was used during World War II to assist the United
States in its effort to improve the quality of war materials
Who was W. Edwards Deming
- He got his BS degree from University of Wyoming
- He got his MS degree from University of Colorado
- He got his PHD in Mathematical Physics from Yale University
- Get his first employment chance in an electricity company in
Chicago
- He taught physics , mathematics , statistics and quality in Japan .
* Deming is best known for his management philosophy ,
establishing quality , productivity and competitive position .
Deming’s contribution to quality
Deming key contributions
1. Deming’s 14 points of quality management
2. Deming’s Chain Reaction
3. PDCA cycle
Deming’s 14 points of Total Quality Management
Point #1
Create constancy of purpose for continual
improvement of product and services:
▪ Plan for quality in the long term direction (values, mission,
vision)
▪ Don’t just do the same things better-find better things to do.
▪ Invest in innovation, training and research
Point #2
Adopt the new philosophy:
▪ Embrace quality throughout the organization
▪ Create your quality vision, and implement it
Point #3
Cease dependency on inspection to achieve
quality:
▪ Inspections are costly and unreliable- and they don’t
improve quality, they merely find a lack of quality.
Point #4
End the practice of awarding business on price alone;
instead, minimize total cost by working with a single
supplier:
▪ Look at suppliers as your partners in quality.
▪ Encourage them to spend time improving their own quality
(decrease expenses for inspection, scrap and rework,
inventory to replace defective items and employee frustration).
Point #5
Improve constantly and forever the system of
every process of planning, production and
services:
▪ Improve both design (customers needs, Market survey,
feedbacks) and production (reduce causes of variation)
▪ Constant improvement of quality and productivity
decrease costs
Point #6
Institute training on the job:
▪ Build a foundation of common knowledge
▪ Allow workers to understand their roles in the “big picture”
Point #7
Adopt and institute modern methods of supervision
and leadership:
▪ Don’t simply supervise - provide support and resources so
that each staff member can do his or her best.
▪ Be a coach, provide guidance instead of just overseeing
them
Point #8
Drive out fear:
▪ Fear: Obstacle to improve efficiency and effectiveness (failure, unknown,
weakness, losing control, change)
▪ Create an environment that encourages people to ask questions, report
problems, can share their ideas and try new ideas
▪ Allow people to perform at their best by ensuring that they’re not afraid to
express ideas or concerns.
▪ Make workers feel valued, and encourage them to look for better ways to
do things.
Point #9
Break down barriers between departments and
individuals (staff areas):
▪ Interdisciplinary team can enhance quality and effectiveness of
effort to design and build product and services
▪ Team work helps to breakdown barriers between departments
and individuals
▪ People in research, design, production and sales
Point #10
Eliminate the use of slogans, posters, exhortations and
targets for the workforce:
▪ Let people know exactly what you want - don’t make them
guess.
▪ Motivational methods overlooks the sources of many problem.
▪ Quality problems comes from limits in current system
▪ Urge workers to work harder, train them, provide required
resources
Point #11
Eliminate work standards and numerical quotas:
▪ Look at how the process is carried out, not just numerical
targets
▪ Measure the process rather than the people behind the
process
Point #12
Remove barriers that rob hourly worker of the
right to pride workmanship:
▪ Analyze contribution of employee (degree of skill with which
a product is made or a job done)
▪ Provide proper circumstances not odd one
(target/tasks/machines/tools/materials/job
tenure/performance appraisal).
Point #13
Institute a vigorous program of education and
retraining :
▪ Improve the current skills of workers
▪ Self-improvement for everyone
▪ Encourage people to learn new skills to prepare for future
changes and challenges
Point #14
Define top management’s permanent commitment
to ever-improving quality and productivity:
▪ Transformation is everybody’s job
▪ Put everybody in the company to work accomplishing the
transformation
▪ Improve overall organization by having each person take a
step toward quality
The Deming Cycle or PDCA Cycle (process improvement )
▪ Problem-solving process- Continuous Improvement (CI)

Plan:
▪ Goal select process that needs / for improvement Action plan/ways
to achieve goal assess the benefits and costs Plan
Do:
▪ Implement plan monitor progress continuous data collection to
measure improvements in the process changes if any, in the process,
are documented further revisions are made as needed
Check:
▪ Team analyses the data collected during the “DO” step
▪ To find out major shortcomings and existing problems
▪ Assess the outcome or result
▪ Re-evaluate the plan continue/stop the project
Act:
▪ If results are successful, the team documents the revised process
▪ It becomes the standard procedure for all who may use it
The Deming Cycle or PDCA Cycle (process
improvement )
PLAN
Plan a change to the process. Predict the effect this
change will have and plan how the effects will be
measured
ACT DO
Adopt the change as a
permanent modification to the Implement the change on a
process, or abandon it. small scale and measure the
effects
CHECK
Study the results to learn what
effect the change had, if any.
Deming’s Chain Reaction
Design and Consumer

redesign Research
C
O
Suppliers N
of Receipt Production Assemble Inspection Distribution S
materials and test U
and of M
equipment materials E
A,B,C,D R
Tests of processes,
machines, methods,
costs
Deming’s Chain Reaction
▪ Efforts should be directed towards complete satisfaction and delight of the
customer
▪ Customer is the most important part of a process
▪ Process is a series of interdependent functions that works together towards
achievement of goal
▪ System covers every stage from procurement of incoming materials to final
distribution of product/services
▪ Everything starts and finishes with the customers
Deming’s Chain reaction
Improve Quality
Costs decrease because of less rework, fewer mistakes, fewer delays and
snags and better use of time and materials
Productivity improves
Capture the market with better quality and lower price
Stay in business
Provide jobs and more jobs
Deming’s 7 deadly Diseases and Sins
1. Lack of constancy of purpose

2. Emphasis on short-term profits
3. Over reliance on performance appraisals
4. Mobility of management
5. Overemphasis on visible figures
6. Excessive medical costs for employee health care
7. Excessive costs of warranty and legal costs
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Dr. Kaoru Ishikawa
▪ Ishikawa Kaoru, July 13, 1915 – April 16, 1989) was

a Japanese organizational theorist, Professor at the
Faculty of Engineering at The University of Tokyo,
noted for his quality management innovations. He is
considered a key figure in the development of quality
initiatives in Japan, particularly the quality circle. He
is best known outside Japan for the Ishikawa or
cause and effect diagram (also known as fishbone
diagram) often used in the analysis of industrial
processes.
Biography
▪ He graduated TATIUC with an engineering degree in applied chemistry.

▪ After graduating he worked as a naval technical officer from 1939-1941.
▪ Between 1941-1947 Ishikawa worked at the Nissan Liquid Fuel Company.
▪ In 1947 Ishikawa started his academic career as an associate professor at the
University of Tokyo.
▪ In 1949, Ishikawa joined the Japanese Union of Scientists and Engineers
(JUSE) quality control research group.
▪ After becoming a full professor in the Faculty of Engineering at The University
of Tokyo (1960) Ishikawa introduced the concept of quality circles (1962) in
conjunction with JUSE.
▪ He undertook the presidency of the Musashi Institute of Technology in 1978.
Contributions to improvement of quality
▪ User Friendly Quality Control

▪ Fishbone Cause and Effect Diagram - Ishikawa diagram
▪ Implementation of Quality Circles
▪ Emphasized the Internal customer
▪ Shared Vision
Awards and recognition
▪ 1972 American Society for Quality's Eugene L. Grant

Award
▪ 1977 Blue Ribbon Medal by the Japanese Government for
achievements in industrial standardization
▪ 1982 Walter A. Shewhart Medal
▪ 1988 Awarded the Order of the Sacred Treasures, Second
Class, by the Japanese government.
Kaoru Ishikawa
▪ Dr. Ishikawa believed that everyone in the company needed to be united
with a shared vision and a common goal
▪ He stressed that quality initiatives should be pursued at every level of the

organization and that all employees should be involved
▪ Dr. Ishikawa was a proponent of implementation of quality circles, which

are small teams of employees that volunteer to solve quality problems
External Customer
Internal Customers
Customer who uses your
company's products or services
directly connected to an organization
but is not part of your
organization
internal to the organization
e.g. If you own a retail store, an
e.g. stakeholders, employees, or
external customer is an
shareholders
individual who enters your store
and buys merchandise
Ishikawa’s Fish Bone Diagram
▪ Ishikawa diagrams (also called fishbone diagrams, herringbone

diagrams, cause-and-effect diagrams, or Fishikawa) are causal
diagrams created by Kaoru Ishikawa that show the causes of a specific
event.
▪ Created in 1943 by Professor Kaoru Ishikawa of Tokyo University
▪ A common use of the Ishikawa diagram is in product design, to identify
desirable factors leading to an overall effect
▪ A graphic tool used to explore and display opinion about sources of
variation in a process
If root cause(s) are not identified
properly, any countermeasures
could not be come up with…
The problem
will never be
solved!!
Basic Use of the Cause Effect Diagram
The Cause Effect Diagram

is basically used to
investigate a problem,
exploring, identifying, and
displaying the possible
causes
▪ The defect is shown as the fish's head, facing to the right, with
the causes extending to the left as fishbones; the ribs branch off the backbone
for major causes, with sub-branches for root-causes, to as many levels as
required.
▪ Ishikawa diagrams were popularized in the 1960s by Kaoru Ishikawa, who
pioneered quality management processes in the Kawasaki shipyards, and in
the process became one of the founding fathers of modern management.
▪ Mazda Motors famously used an Ishikawa diagram in the development of
the Miata (MX5) sports car.
▪ https://www.miata.net/news/nc_debut.html
Cause-Effect diagram (Fish bone diagram)
Cause Cause
Effect
Cause Cause
• Connects “effect” and “cause(s)” systematically with line

• Clarification of relations between effect and cause(s)
Advantages
▪ Highly visual brainstorming tool which can spark further examples of root
causes
▪ Quickly identify if the root cause is found multiple times in the same or different
causal tree
▪ Allows one to see all causes simultaneously
▪ Good visualization for presenting issues to stakeholders
Disadvantages
▪ Complex defects might yield a lot of causes which might become

visually cluttering
▪ Interrelationships between causes are not easily identifiable
Purpose of the Cause Effect Diagram
To arrive at a few key sources that contributes most
significantly to the problem being examined
These sources are then targeted for improvement
The diagram also illustrates the relationships among the wide

variety of possible contributors to the effect
Cause-Effect diagram
(Fish bone diagram)
Caus
Cause
e
Effect
Cause Cause
• It is developed by Prof. Kaoru Ishikawa

• It connects “effect” and “cause(s)” systematically with line
• Clarification of relations between effect and cause(s)
Major M’s (cause) behind any problem
Originating with lean manufacturing and the Toyota Production System, the 5 Ms is one of the
most common frameworks for root-cause analysis:
▪ Man / mind power (physical or knowledge work, includes: kaizens, suggestions)
▪ Machine (equipment, technology)
▪ Material (includes raw material, consumables, and information)
▪ Method (process)
▪ Measurement / medium (inspection, environment)
These have been expanded by some to include an additional three, and are referred to as the
8 Ms:
▪ Mission / mother nature (purpose, environment)
▪ Management / money power (leadership)
▪ Maintenance
▪ Analyzing the Cause
▪ Categories causes
▪ Identify problem to be corrected and any possible sub causes
of the problem
▪ the cause of problems in each area, seeking changes that
are deviations from the norm
▪ Repeat for each sub-area
Case: shortening telephone waiting time…
• A bank is employing a call answering service
• The main goal in terms of quality is “zero waiting time”

- customers should not get a bad impression
- company vision is to be friendly and have easy access
• The question is how to analyze the situation and improve quality

The current process
Customer Receiving
Operator
A Party
Customer
B How can we reduce waiting
time?
Fishbone diagram analysis
Receiving party Absent Working system of

operators
Absent Too many phone

calls
Out of office Lunchtime
Not at desk Absent

Makes
customer
Not giving wait
receiving party’s Does not
coordinates Lengthy talk understan
Does not know d
Complaining customer
organization
well
Leaving a Takes too much
message time to explain
Customer Operator
Why students do not participate in extra-curricular activities?
Why students are not interested in studies?
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Joseph M. Juran
▪ Joseph Moses Juran (December 24,

1904 – February 28, 2008) was
a Romanian-born American engineer and
management consultant. He was an
evangelist for quality and quality
management, having written several
books on those subjects.
▪ In 1912, Juran emigrated to America with
his family, settling in Minneapolis,
Minnesota. He excelled in school,
especially in mathematics.
▪ In 1924, with a bachelor's degree in electrical engineering from the University of
Minnesota, Juran joined Western Electric's Hawthorne Works.
▪ His first job was troubleshooting in the Complaint Department.
▪ In 1925, Bell Labs proposed that Hawthorne Works personnel be trained in its
newly developed statistical sampling and control chart techniques.
▪ Juran was chosen to join the Inspection Statistical Department, a small group of
engineers charged with applying and disseminating Bell Labs' statistical quality
control innovations. This highly visible position fueled Juran's rapid ascent in
the organization and the course of his later career.
▪ Juran was promoted to department chief in 1928, and the following year
became a division chief.
▪ He published his first quality-related article in Mechanical Engineering in 1935.
In 1937, he moved to Western Electric/AT&T's headquarters in New York City,
where he held the position of Chief Industrial Engineer.
▪ As a hedge against the uncertainties of the Great Depression, he enrolled
in Loyola University Chicago School of Law in 1931.
▪ He graduated in 1935 and was admitted to the Illinois bar in 1936, though he
never practiced law.
▪ Just before the World war's end, he resigned from Western Electric and his
government post, intending to become a freelance consultant.
▪ He soon joined the faculty of New York University as an adjunct professor in the
Department of Industrial Engineering, where he taught courses in quality control
and ran round table seminars for executives.
▪ When he finally arrived in Japan in 1954, Juran met with executives from ten
manufacturing companies, notably Showa Denko, Nippon Kōgaku, Noritake,
and Takeda Pharmaceutical Company.
▪ Juran—who focused on managing for quality—went to Japan and started
courses (1954) in quality management. The training began with top and middle
management. The idea that top and middle management needed training had
found resistance in the United States.
▪ Juran founded the Juran Institute in 1979.
▪ The Institute is an international training, certification, and consulting company
that provides training and consulting services in quality management, Lean
manufacturing management and business process management, as well as Six
Sigma certification. The institute is based in Southbury, Connecticut.
▪ Their mission statement is to "Create a global community of practice to
empower organizations and people to push beyond their limits.“
▪ Juran began writing his memoirs at 92. They were published two months before
he celebrated his 99th birthday. He gave two interviews at 94 and 97.
▪ In 2004, at age 100, he was awarded an honorary doctorate from Luleå
University of Technology in Sweden. A special event was held in May to mark
his 100th birthday.
Books Published
•Quality Control Handbook, New York, New York: McGraw-Hill,

1951, OCLC 1220529
Eventually published in six editions: 2nd edition, 1962, 3rd edition, 1974, 4th
edition, 1988, 5th edition, 1999, 6th edition, 2010
•Managerial Breakthrough, New York, New York: McGraw-Hill, 1964
•Management of Quality Control, New York, New York: Joseph M. Juran,
1967, OCLC 66818686
•Quality Planning and Analysis, New York, New York: McGraw-Hill, 1970
•Upper Management and Quality, New York, New York: Joseph M. Juran,
1980, OCLC 8103276
•Juran on Planning for Quality, New York, New York: The Free Press,
1988, OCLC 16468905
Juran’s 10 steps for quality improvement
▪ Build awareness for the need and opportunity for improvement

▪ Set goals for improvement
▪ Organise people to reach the goals
▪ Provide training throughout the organisation
▪ Carryout projects to solve problems
▪ Report progress
▪ Give recognition
▪ Communicate results
▪ Keep score
▪ Maintain momentum by making annual improvement part of the regular system
and processes of the company
Juran’s Definition on Quality
Juran defined quality as:

▪ Product performance that results in customer satisfaction
▪ Freedom from product deficiencies, which avoids customer
dissatisfaction, simply summarised as ‘fitness for use’
Fitness of Use forms major product traits
1. Quality of design
2. Quality of conformance
3. Availability
4. Safety
5. Field use
Contributions of Joseph M. Juran
▪ Compelling definitions of quality and the cost of quality (COQ)

▪ Quality Habit
▪ Quality Trilogy
▪ Universal Breakthrough Sequence
Cost of Quality (COQ)
Definition:
“Quality Costs are defined as those costs associated with the non-achievement of product
/service quality as defined by the requirements established by the organization and its
contract with customer and society”.
The cost associated with product and service quality . Some cost are associated with
preventing poor quality and some costs occur after poor quality occurs. There are four major
costs associated with quality management as follows:
▪ Prevention costs
▪ Appraisal costs
▪ Costs of internal failure
▪ Costs of external failure
Prevention costs
“Prevention costs are the costs that occur when a company is performing activities designed
to prevent quality problems from arising in products or services”.
▪ Cost associated with preventing defects before they happen.
▪ Cost of redesigning the product to make it simpler to produce, redesigning the process to
remove causes of poor quality.
 Quality planning
 New product review
 Training
 Process planning
 Quality data
 Improvement projects
Appraisal costs
“Appraisal costs are associated with measuring, evaluating or auditing products or
services to ensure that they conform to specifications or requirements”.
▪ Cost incurred in assessing the level of quality attained by the operating system.
▪ Cost of detecting the defects
 Incoming materials inspections
 Process inspection
 Final goods inspection
 Quality laboratories
Costs of internal failure

“Internal failure costs are costs associated with product non-conformities (service failure)
found before the product is shipped to the customer”.
▪ Cost of results from defects that are discovered during the production of product and
service.
▪ Product found to be defective while in production must be either scrapped or repaired.
▪ Cost of producing the items that arte scrapped, cost of repairing, reworking and retesting
defective products and all the costs of delays, paperwork, rescheduling etc.
 Scarps
 Rework
 Downgrading
 Retest
Department of Commerce,  Downtime
New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
Costs of external failure

“External failure costs arise from the rejection of the products / services by the customers due
to poor quality”.
▪ Cost arise when a defect is discovered after the customer has received the product or
service.
▪ Cost include warranty costs, products liability suits or settlements, the cost of product
returns or recall and lost business and customer goodwill.
 Warranty
 Returned merchandise
 Complaints
 Allowances
Quality Habit
Juran’s ultimate goal for TQM programme for the firm as a whole has to be set on a
process of continuous improvement.
Juran advocated a four stages process to develop the quality habit for any firm,
these stages are:
▪ Establish specific goals that identify what organisation members should do and
why.
▪ Establish plans for reaching those goals with enough detail to guide peoples
actions from beginning to end,
▪ Assign clear responsibilities for meeting the gaols and
▪ Base rewards on results.
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Juran’s Quality Trilogy
▪ Juran broke down the requirement for

successful TQM into three major activities, the
quality trilogy: Quality planning, quality control
and quality improvement.
Juran’s Quality Trilogy
Three basic essential process to improve

quality
Quality Quality
Planning Improvement
Quality
Control
JURAN TRILOGY
Quality trilogy starts with first phase ‘quality planning’ at various

levels of the organization
example
▪ strategic quality planning at top management level
▪ tactical quality planning at middle management level
▪ operational quality planning at junior management level
JURAN TRILOGY
▪ The second phase is ‘quality control’

Phase has a goal to run the process effectively in such a way that
the plans are successfully implemented
▪ The third phase of the trilogy process is ‘quality improvement’
of the product and the process
Phase reflects long term thinking and planning by managers as
part of universal breakthrough sequence.
Juran’s Quality Trilogy Process
Quality Planning
Quality planning involves developing the products, systems & processes needed to
meet customer expectations. The following steps are required for quality planning:
▪ Identify the customer-both external and internal
▪ Determine customer needs
▪ Develop product features that respond to customer needs
▪ Establish quality goals that meet the needs of customers and suppliers alike
and do as at a minimum combined cost
▪ Develop a process that can produce the needed product features
▪ Prove process capability
Quality Control
The control of quality involves the following process :
▪ Choose control subjects
▪ Choose units of measurements
▪ Establish standards of performance
▪ Measure actual performance
▪ Interpret the difference between actual performance and standard performance
▪ Take action on the difference
Quality Improvement
The improvement of quality should be on going & continuous
▪ Prove the need for improvement
▪ Identify the specific projects for improvement
▪ Organize to guide the projects
▪ Organize for diagnosis for discovery of causes
▪ Find the causes
▪ Provide remedies
▪ Prove that the remedies are effective under operating conditions
▪ Provide control mechanism to hold the gains.
Universal Breakthrough Sequence
Juran’s Universal Breakthrough Sequence identifies a set of actions directed

towards achieving major leaps in quality. The following are the steps.
▪ Proof of needs
▪ Project identifications
▪ Organizing for improvements
▪ Diagnostics journey
▪ Remedial action
▪ Resistance to change
▪ Holding onto gains
Strength and Weaknesses of Juran Philosophy
Strength
▪ New understanding of the customer, referring to both internal and external
customer.
▪ Management involvement and commitment is stressed.
Weaknesses
▪ The emphasis on managements responsibility for quality fails to get the grips
with the literature on motivation and leadership.
▪ The contribution that the worker can make undervalued.
▪ The methods advocated are traditional and old fashioned.
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Genichi Taguchi
▪ Genichi Taguchi (January 1, 1924 – June 2,

2012) was an engineer and statistician. From
the 1950s onwards, Taguchi developed a
methodology for applying statistics to improve
the quality of manufactured goods. Taguchi
methods have been controversial among
some conventional Western statisticians, but
others have accepted many of the concepts
introduced by him as valid extensions to the
body of knowledge.
▪ Taguchi was born and raised in the textile town of Tokamachi, in Niigata
prefecture.
▪ He initially studied textile engineering at Kiryu Technical College with the
intention of entering the family kimono business.
▪ However, with the escalation of World War II in 1942, he was drafted into the
Astronomical Department of the Navigation Institute of the Imperial Japanese
Navy.
▪ After the war, in 1948 he joined the Ministry of Public Health and Welfare,
where he came under the influence of eminent statistician Matosaburo
Masuyama, who kindled his interest in the design of experiments.
▪ He also worked at the Institute of Statistical Mathematics during this time, and
supported experimental work on the production of penicillin at Morinaga
Pharmaceuticals, a Morinaga Seika company.
▪ In 1950, he joined the Electrical Communications Laboratory (ECL) of
the Nippon Telegraph and Telephone Corporation just as statistical quality
control was beginning to become popular in Japan.
▪ He collaborated widely and in 1954-1955 and was visiting professor at
the Indian Statistical Institute, where he worked with C. R. Rao, Ronald
Fisher and Walter A. Shewhart.
▪ While working at the SQC Unit of ISI, he was introduced to the orthogonal
arrays invented by C. R. Rao - a topic which was to be instrumental in enabling
him to develop the foundation blocks of what is now known as Taguchi
methods.
▪ On completing his doctorate at Kyushu University in 1962. In the same year he
visited Princeton University
▪ In 1964 he became professor of engineering at Aoyama Gakuin
University, Tokyo.
▪ Since 1982, Genichi Taguchi has been an advisor to the Japanese Standards
Institute and executive director of the American Supplier Institute, an
international consulting organisation.
Contributions
▪ Taguchi loss function.

▪ The philosophy of ’off-line quality control’.
▪ Innovations in the statistical ’design of experiments’.
Genichi Taguchi
▪ Dr. Genichi Taguchi was a Japanese quality expert known for

product design
▪ Improvement of quality of products begins at design stage:
focus quality efforts on the design stage
▪ It is initial process not later process
▪ cheaper and easier to make changes during the product
design stage than later during the production process
Taguchi quality loss function
Developed by Genichi Taguchi, it is a graphical representation of how an increase

in variation within specification limits leads to an exponential increase in customer
dissatisfaction.
▪ The common thinking around specification limits is that the customer is satisfied
as long as the variation stays within the specification limits.
▪ If the variation exceeds the limits, then the customer immediately feels
dissatisfied.
▪ For example, if the lower limit is 10, and the upper limit is 20, then a measurement
of 19.9 will lead to customer satisfaction, while a measurement of 20.1 will lead to
customer dissatisfaction.
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▪ However, Taguchi states that

any variation away from the
nominal (target) performance will
begin to incur customer
dissatisfaction.
▪ In the previous example, if the
measurement indicated 20.1 the
customer will be dissatisfied as it
has crossed the upper control
limit.
▪ Taguchi states that the specification limits do not cleanly separate satisfaction
levels for the customer.
▪ The goal of a company should be to achieve the target performance with
minimal variation. That will minimize the customer dissatisfaction.
▪ A real life example of the Taguchi Loss Function would be the quality of food
compared to expiration dates.
▪ If you purchase an orange at the supermarket, there is a certain date that is ideal to eat it.
That would be the target date. There will also be limits for when to eat the orange (within
three days of the target date, Day 2 to Day 8).
▪ For this example, Day 5 represents the target date to eat the orange. That is when the
orange will taste the best (customer satisfaction).
▪ You purchase the orange on Day 1, but if you eat the orange you will be very dissatisfied,
as it is not ready to eat. This would fall below the lower limit. On Day 3 it would be
acceptable to eat, but you are still dissatisfied because it doesn’t taste as good as eating
on the target date. If you wait for Day 5, you will be satisfied, because it is eaten on the
ideal date. If you wait until Day 7, you will be slightly dissatisfied, because it is one day
past the ideal date, but it will still be within the limits provided by the supermarket. If you
wait until Day 9, you will be very dissatisfied, as it will be too far past the ideal date.
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▪ You are slightly dissatisfied from Day 2 through 4, and from Day 6 through 8,
even though technically you are within the limits provided by the supermarket.
The least amount of dissatisfaction occurs on the target date, and each day
removed from the target date incurs slightly more dissatisfaction. Contrary to
most discussions around specification limits, you are NOT completely satisfied
from Days 2 through 8, and only dissatisfied on Day 1 and 9.
Taguchi quality loss function
▪ Taguchi estimates that 80 % of all defective items are caused

by poor product design
▪ Taguchi originated quality engineering approach: helps
combining engineering and statistical method to reduce cost
of the product
▪ Taguchi methods help to improve quality of the product by
optimizing product design and improving manufacturing
process
Characteristics of Taguchi Methods
▪ The ideal value of a product performance characteristic is its

target value
▪ A high-quality product perform near target value consistently
throughout its life span and under all the operating
conditions
▪ Purpose of Taguchi methods is quality improvement and
loss control (quality/process/cost)
▪ Useful during development of product/service designs
Failure of a product to meet its target value for a particular

performance is the loss of
▪ society
(short product life, maintenance, repair cost, stress and regrets
of investment on product) as well as for s
▪ organization
(company’s reputation, loss of market, loss of customer’s trust)
▪ Any deviation from the target value of a quality characteristics

results extra costs and loss to some segment of society
▪ Taguchi defines quality loss in terms of the social loss, loss of
producers and customers
▪ The smaller the value of this social loss, the more desirable is
the product
Thank you

TQM - Unit 2

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TQM - Unit 2

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Total Quality Management

1. Deming’s 14 points of quality management

2. Deming’s Chain Reaction

▪ Problem-solving process- Continuous Improvement (CI)

Design and Consumer

Capture the market with better quality and lower price

Provide jobs and more jobs

1. Lack of constancy of purpose

Dr. Kaoru Ishikawa

▪ Ishikawa Kaoru, July 13, 1915 – April 16, 1989) was

▪ He graduated TATIUC with an engineering degree in applied chemistry.

▪ User Friendly Quality Control

▪ 1972 American Society for Quality's Eugene L. Grant

▪ He stressed that quality initiatives should be pursued at every level of the

▪ Dr. Ishikawa was a proponent of implementation of quality circles, which

▪ Ishikawa diagrams (also called fishbone diagrams, herringbone

The Cause Effect Diagram

• Connects “effect” and “cause(s)” systematically with line

▪ Complex defects might yield a lot of causes which might become

These sources are then targeted for improvement

The diagram also illustrates the relationships among the wide

• It is developed by Prof. Kaoru Ishikawa

• The main goal in terms of quality is “zero waiting time”

• The question is how to analyze the situation and improve quality

Receiving party Absent Working system of

Absent Too many phone

Not at desk Absent

Why students are not interested in studies?

▪ Joseph Moses Juran (December 24,

•Quality Control Handbook, New York, New York: McGraw-Hill,

▪ Build awareness for the need and opportunity for improvement

Juran defined quality as:

▪ Compelling definitions of quality and the cost of quality (COQ)

Costs of internal failure

Costs of external failure

Juran’s Quality Trilogy

▪ Juran broke down the requirement for

Three basic essential process to improve

Quality trilogy starts with first phase ‘quality planning’ at various

▪ The second phase is ‘quality control’

Juran’s Universal Breakthrough Sequence identifies a set of actions directed

▪ Genichi Taguchi (January 1, 1924 – June 2,

▪ Taguchi loss function.

▪ Dr. Genichi Taguchi was a Japanese quality expert known for

Developed by Genichi Taguchi, it is a graphical representation of how an increase

▪ However, Taguchi states that

▪ Taguchi estimates that 80 % of all defective items are caused

▪ The ideal value of a product performance characteristic is its

Failure of a product to meet its target value for a particular

▪ Any deviation from the target value of a quality characteristics

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