UNIT – I

INTRODUCTION
Topics;
Introduction - Need for quality - Evolution of quality - Definitions of quality -
Dimensions of product and service quality - Basic concepts of TQM - TQM Framework -
Contributions of Deming, Juran and Crosby - Barriers to TQM - Quality statements -
Customer focus - Customer orientation, Customer satisfaction, Customer complaints,
Customer retention - Costs of quality.

1. Introduction To Quality:-

 One of the important issues that business has focused on in the last two decades is
“Quality”. The other issues are cost and delivery.
 As markets have become much more competitive ‘Quality’ has been widely
considered as a key element for success in business in the present competitive market.
 Quality has become the prime focus of business attention because of the impact it has
on sustained performance and customer satisfaction.
 The quality movement has been growing throughout the world for many years now.
 Quality refers to meeting the needs and expectations of customers.
 It is important to understand that quality is about more than a product simply working
properly.
 Quality refers to certain standards and the ways and means by which those standards
are achieved, maintained and improved.
 Quality is not just confined to products and services. It is a homogeneous element of
any aspect of doing things with high degree of perfection.
 For example Business success depends on the quality decision making.

“Quality is defined as the fitness for use / purpose at the most economical level”

Some definitions that are accepted in various organizations:

– “Quality is customer satisfaction,”
– “Quality is Fitness for Use.”
 What is a customer?
Anyone who is impacted by the product or process delivered by an organization.
External customer: The end user as well as intermediate processors. Other external
customers may not be purchasers but may have some connection with the product.
Internal customer: Other divisions of the company that receive the processed product.

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What is a product?
The output of the process carried out by the organization. It may be goods (e.g.
automobiles, missile), software (e.g. a computer code, a report) or service (e.g. banking,
insurance)

How is customer satisfaction achieved?

Two dimensions: Product features and Freedom from deficiencies.
• Product features – Refers to quality of design.
Examples in manufacturing industry: Performance, Reliability, Durability, Ease of use,
Esthetics etc.
Examples in service industry: Accuracy, Timeliness, Friendliness and courtesy, Knowledge
of server etc.
• Freedom from deficiencies – Refers to quality of conformance.
Higher conformance means fewer complaints and increased customer satisfaction. (This is
related to free from defects.)

1.1 NEED FOR QUALITY:-

Here are some of the reasons for quality becoming a cardinal priority for most
organizations:
 Competition – Today’s market demand high quality products at low cost. Having
`high quality’ reputation is not enough! Internal cost of maintaining the reputation
should be less.

 Changing customer – The new customer is not only commanding priority based on
volume but is more demanding about the “quality system.”

 Changing product mix – The shift from low volume, high price to high volume, low
price have resulted in a need to reduce the internal cost of poor quality.

 Product complexity – As systems have become more complex, the reliability

requirements for suppliers of components have become more stringent.

 Higher levels of customer satisfaction – Higher customer’s expectations are getting

spawned by increasing competition.

 Relatively simpler approaches to quality viz. product inspection for quality control
and incorporation of internal cost of poor quality into the selling price, might not
work for today’s complex market environment.
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 1.2 EVOLUTION OF QUALITY
Time Events
Until 1960s
Prior to the Quality is an art
20th century Demands overcome potential production
An era of workmanship
The scientific approach to management resulting in rationalization of work and its
F.Taylor 1900s break down leads to greater need for standardization, inspection and supervision
Statistical beginnings and study of quality control. In parallel, studies by R A
Shewart 1930s Fisher on experimental design; the beginning of control charts at western Electric
in USA
Quality standards and approaches are introduced in France and Japan. Beginning
Late 1930s of SQC, reliability and maintenance engineering
1942 Seminal work by Deming at the ministry of war in USA on quality control and
sampling Working group setup by Juran and Dodge on SQC in US army Concepts
of acceptance sampling devised
1944 Daodge and Deming carried out seminal research on acceptance sampling
1945 Founding of the Japan standard association
1946 Founding of the ASQC
1950 Visit of Deming in Japan at the invitation of K Ishikawa
1951 Quality assurance increasingly accepted
1954 TQC in Japan ; Book published 1956
1957 Founding of European organization for the control of quality
After 1960s
The Martin Co in USA introduces the zero defects approach while developing and
1961 producing Pershing Missiles. Quality motivation is starting
in the US and integrated programmes begun
1962 Quality circles are started in Japan
1964 Ishikawa publishes book on Quality management
1970 Iskiawa publishes the book on the basics of quality circles and the concept
of Total Quality is affirmed and devised in Japanese industries
Just – in –Time and quality become crucial for competitiveness. A large number of
1970 to 1980 US and European corporations are beginning to appreciate the advance of Japan’s
industries. Taguchi popularizes the use of environmental design to design robust
systems and products

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 Facing the rising sun challenge in quality management Development and
1980+ introduction of FMSs and greater dependence on supplier contracts. Growth of
economic based on quality control, information software packages
The management of quality has become a necessity that is recognized at all levels
1990+ of management Increasing importance is given to off line quality management for
the design of robust manufacturing processes and products. The growth of process
optimization

Evolution of TQM
The TQM philosophy has evolved from the quality in the sequence as shown in the figure;

Quality Control Statistical Quality Control

Quality
(QC) (SQC)

Quality Assurance Total Quality Control

TQM
(QA) (TQC)

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1.3 QUALITY – DEFINITION

Quality can be defined in various ways. Some of the important definitions of quality
are;

1) Quality is a Predictable degree of uniformity and dependability at low cost and suited

to the market - Deming

2) Quality is Fitness for use - Juran

3) Quality is Conformance to requirements - Crosby

4) Quality is the Minimum loss imparted by a product to society from the time the

product is shipped - Taguchi

5) Quality is in its essence, A way of managing tile organization -Feigenbaum

6) Quality is Correcting and preventing loss, not living with loss - Hosffin

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 7) Quality is the totality of characteristics of an entity that bear on its ability to satisfy

stated and implied needs – ISO

QUANITIFICATION OF QUALITY

𝐏
Q=
𝐄

P = Performance

E = Expectations

‘P’ depends on the product performance and service

‘E’ expectation of the customers

1.4 DIMENSIONS OF PRODUCT AND SERVICE QUALITY:

PRODUCT QUALITY:

Dimension Meaning and Example

Performance - Primary product requirements, such as the brightness of the picture

Features - Secondary characteristics, added features, such as remote control

Conformance - Meeting specifications or industry standards, workmanship

Reliability - Consistency of performance over time, average time of the unit to fail

Durability - Long life and less maintenance

Service - Resolution of problems and complaints, ease of repair, guarantee and

warranty

Response - Human – to – human interface, such as the courtesy of the dealer

Aesthetics - Sensory characteristics, such as exterior finish, packages, appearance

Reputation - Past performance and other intangibles, such as ranking, branding

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SERVICE QUALITY:

Dimension Meaning and Example

Reliability - Refers to the dependability of the service providers and their

ability to keep their promises.

Responsiveness - Refers to the reaction time of the service.

Assurance - Refers the level of certainty a customer has regarding the

quality of the service provided.

Empathy - Being able to understand the needs of the customer as an

individual.

Tangibles - Similar to the physical characteristics of quality of products.

Other Dimensions - Time, Courtesy, Timeliness, consistency, accuracy, credibility

and security.

TOTAL QUALITY MANAGEMENT (TQM):

TQM is defined as both philosophy and a set of guiding principles that
represent the foundation of continuously improving organization. It is
the
application of quantitative methods and human resources to improve all
the process
within the organization and exceed customer needs now and in the
future.
Total Quality Management is an effective system for integrating the
quality
development, quality maintenance and quality improvement efforts of
various
groups in an organization continuously, so as to enable marketing,
engineering,
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production and service at the most economic levels which allow for full
customer
satisfaction.
BASIC CONCEPTS OF TQM:
1. Management Involvement – Participate in quality program, develop
quality
council, direct participation.
2. Focus on customer – who is the customer – internal and external,
voice of
the customer, do it right first time and every time.
3. Involvement and utilisation of entire work force – All levels of
Management.
4. Continuous improvement – Quality never stops, placing orders, bill
errors, delivery, minimize wastage and scrap etc.
5. Treating suppliers as partners – no business exists without suppliers.
6. Performance measures – creating accountability in all levels.

DIMENSIONS OF QUALITY:

Dimension Meaning and Example

Performance - Primary product characteristics, such as the brightness of the picture

Features - Secondary characteristics, added features, such as remote control

Conformance - Meeting specifications or industry standards, workmanship

Reliability - Consistency of performance over time, average time of the unit to fail

Durability - Useful life, includes repair

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Service - Resolution of problems and complaints, ease of repair

Response - Human – to – human interface, such as the courtesy of the dealer

Aesthetics - Sensory characteristics, such as exterior finish

Reputation - Past performance and other intangibles, such as being ranked first

QUALITY PLANNING
The following are the important steps for quality planning.
1. Establishing quality goals.
2. Identifying customers.
3. Discovering customer needs.
4. Developing product features.
5. Developing process features.
6. Establishing process controls and transferring to operations.

Quality Planning Identifying customers both internal and external and determining the need
and developing product features. Setting goals and objective – Goals are long term objectives
are short term Steps to Quality planning
1) Customer Needs – Who, will they change, their wants
2) Customer positioning – Retain, reduce or expand customer base
3) Predict the future – update product or service to the latest trends and needs
4) Gap Analysis – identify gap between current state and future actions
5) Closing the gap – establish goals and responsibilities
6) Alignment – align to the vision and mission of the orgn. Plan without align will fail.
7) Implementation – resource allocation, design changes, overcome resistance,
monitoring etc

IMPORTANT POINTS TO BE NOTED WHILE QUALITY PLANNING:

1) Business, having larger market share and better quality, earn returns much higher than
their competitors.
2) Quality and Market share each has a strong separate relationship too profitably.
3) Planning for product quality must be based on meeting customer needs, not just
meeting product specifications.

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 4) For same products. We need to plan for perfection. For other products, we need to
plan for value.

Quality Costs – Quality leads to profit, more quality more profit. It is defined as those costs
associated with non achievement of product or service quality as stated in the requirements
established by the organization and with its association to the customers and society.
Analysis technique for Quality Cost The term "trend analysis" refers to the concept of
collecting information and attempting to spot a pattern, or trend, in the information. In some
fields of study, the term "trend analysis" has more formally-defined meanings. Although
trend analysis is often used to predict future events, it could be used to estimate uncertain
events in the past, such as how many ancient kings probably ruled between two dates, based
on data such as the average years which other known kings reigned.
Pareto Analysis This fact gave rise to the Pareto effect or Pareto’s law: – ‘the vital few and
the trivial many’. The Pareto effect is named after Vilfredo Pareto, an economist and
sociologist who lived from 1848 to 1923. Originally trained as an engineer he was a one time
managing director of a group of coalmines.

Pareto analysis is a statistical technique in decision making that is used for selection of a
limited number of tasks that produce significant overall effect. It uses the Pareto principle -
the idea that by doing 20% of work you can generate 80% of the advantage of doing the
entire job. Or in terms of quality improvement, a large majority of problems (80%) are
produced by a few key causes (20%). Pareto analysis is a formal technique useful where
many possible courses of action are competing for your attention. In essence, the problem-
solver estimates the benefit delivered by each action, then selects a number of the most
effective actions that deliver a total benefit reasonably close to the maximal possible one.
Use of Pareto principle in prioritizing or ranking a range of items which have different
levels of significance. Its objective is to separate the 'vital few' from the 'useful many.'

Steps to identify the important causes using Pareto analysis

Step 1: Form a table listing the causes and their frequency as a percentage.
Step 2: Arrange the rows in the decreasing order of importance of the causes (i.e, the
most important cause first)
Step 3: Add a cumulative percentage column to the table
Step 4: Plot with causes on x- and cumulative percentage on y-axis
Step 5: Join the above points to form a curve

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 Step 6: Plot (on the same graph) a bar graph with causes on x- and percent frequency
on y-axis
Step 7: Draw line at 80% on y-axis parallel to x-axis. Then drop the line at the point of
intersection with the curve on x-axis. This point on the x-axis separates the important
causes (on the left) and trivial causes (on the right)

QUALITY COSTS:-
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
contracts with customers and society. Quality cost is a cost for poor product of service.

Elements of Quality cost:-

a. Cost of prevention
b. Cost of appraisal
c. Cost of internal failures
d. Cost of external failures.

Analysis of Quality Costs:-

a. Trend analysis
b. Pareto analysis

1. Prevention Cost
 Marketing / Customer / User.
 Product / Service / Design Development.
 Purchasing
 Operations (Manufacturing or Service)
 Quality Administration.

2. Appraisal Cost
 Purchasing Appraisal Costs.
 Operations Appraisal Costs
 External Appraisal Costs
 Review of Test and Inspection Data
 Miscellaneous Quality Evaluations

3. Internal Failure Cost

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  Product or Service Design Failure Costs (Internal)
 Purchasing Failure Costs
 Operations (Product or Service) Failure Costs

4. External Failure Cost

 Complaint Investigations of Customer or User Service
 Returned Goods
 Retrofit and Recall Costs
 Warranty Claims
 Liability Costs
 Penalties
 Customer or User Goodwill
 Lost Sales

ANALYSIS TECHNIQUES OF QUALITY COST

The purpose of quality cost analysis is to determine the cost of maintaining a certain
level of quality. Such activity is necessary to provide feedback to management on the
performance of quality assurance and to assist management in identifying opportunities.
INDEX NUMBERS:
Index Numbers are often used in a variety of applications to measure prices, costs (or)
other numerical quantities and to aid managers in understanding how conditions in one period
compare with those in other periods.
A simple type of index is called a RELATIVE INDEX.

Cost Index in quarter t = (Cost in quarter t / Base period cost) x 100

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TREND ANALYSIS:
 Good visual aids are important communication tools.
 Graphs are particularly useful in presenting comparative results to management.
Trend Analysis is one where Time-to-Time comparisons can be made which illustrates

PARETO ANALYSIS:
 Joseph Juran observed that most of the quality problems are generally created by only
a few causes.
 For example, 80% of all internal failures are due to one (or) two manufacturing
problems.

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  Identifying these “vital few” and ignoring the “trivial many” will make the corrective
action give a high return for a low money input.

Deming’s 14-Point Program for Improving Quality

1. Create constancy of purpose for improvement of product and service.

2. Adopt the new philosophy.
3. Cease dependence on mass inspection.
4. End the practice of awarding business on the price tag alone.
5. Improve constantly and forever the system of production and training.
6. Institute training.
7. Institute leadership.
8. Drive out fear.
9. Break down barriers between staff areas.
10. Eliminate slogans, exhortations, and targets for the workforce.
11. Eliminate numerical quotas.
12. Remove barriers to pride in workmanship.
13. Institute a vigorous program of education and retraining.
14. Take action to accomplish the program.

“A System of Profound Knowledge”

1. Appreciation for a system - A system is a set of functions or activities within an

organization that work together to achieve organizational goals. Management’s job is

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 to optimize the system. (not parts of system, but the whole!). System requires co-
operation.

2. Psychology – The designers and implementers of decisions are people. Hence

understanding their psychology is important.

3. Understanding process variation – A production process contains many sources of

variation. Reduction in variation improves quality. Two types of variations- common
causes and special causes. Focus on the special causes. Common causes can be
reduced only by change of technology.

4. Theory of knowledge – Management decisions should be driven by facts, data and

justifiable theories. Don’t follow the management’s fads!

TOTAL QUALITY MANAGEMENT

Total Quality Management (TQM) is an enhancement to the traditional way of doing
business.
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.

 TQM is the art of managing the whole to achieve excellence.

 TQM is the application of quantitative methods and human resources to improve all the
processes within an organization and exceed CUSTOMER NEEDS now and in the future.

Importance of TQM;
1) It has become a question of survival I the intense competitive environment.
2) Increasing customer consciousness all over the world.
3) Need for earning profit instead of making profit.
4) Crucial role played by organizational issues such as leadership, human resources,
revolution in information technology etc; in quality management.

DEFINITIONOF TQM:-

1. TQM is the management approach of an organization, centered on quality, based on me

participation of all its members and aiming at long-term success through customer
satisfaction. and benefits to all members of me organization and to society.- ISO

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2. TQM is an integrated organizational approach in delighting customers (both internal and
external) by meeting their expectations on a continuous basis through everyone involved
with the organization working on continuous improvement in all products, services, and
processes along with proper problem solving methodology - INDIAN STATISTICAL
INSTITUTE ( ISI )
3. TQM is a. people - focused management system that aims at continual increase in
customer satisfaction at continually lower cost. TQM is a total system approach (not a
separate area of program), and an integral part of high level strategy. It works
horizontally across functions and departments, involving all employees, top to bottom,
and exceeds backwards and forward to include the supply chain and the customer chain
– TOTAL QUALITY FORUM OF USA

4. TQM is the control of all transformation processes of an organization to best satisfy

customers needs in the most economical manner – Prof. LEOPLAD S.VASIN
5. TQM is an approach in improving the effectiveness and flexibility of business as a
whole. It is essentially a way of organizing and involving the whole organization, every
department, every activity, every single at every level. – OAKLAND

Definition of TQM:
Total Quality Management is a management approach that tries to achieve and sustain long
term organizational success by encouraging employee feedback and participation, satisfying
customer needs and expectations, respecting societal values and beliefs, and obeying
governmental statutes and regulations.

CHARACTERISTICS OF TQM:

1. Customer Oriented
2. Long term commitment for continuous improvement of all process
3. Team work
4. Continuous involvement of top management
5. Continuous improving at all levels and all areas of responsibility.

BASIC CONCEPTS OF TQM:

A Successful TQM Programme Requires the Following Six Basic Concepts;

1. Top management commitment

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 2. Focus on the customer – Both internal and external
3. Effective involvement and utilization of entire work force
4. Continuous improvement
5. Treating suppliers as partners
6. Establishing performance measures for the processes
These concepts outline an excellent way to run an organization.

1. Top Management Commitment: Top 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 the entire
work force. Managers participate on quality improvement teams and also act as a
coach to other teams. TQM is a continual activity that must be entrenched in the
culture; it is not just a one-short program. TQM must be communicated to all people
in the organization from the top level to the bottom level.
2. Focus on the Customers: The key to an effective TQM program is its focus on the
customers. An excellent place to start is by satisfying the internal customers. We must
listen to the “voice of the customer” and emphasize design quality and defect
prevention. Do it right the first time and every time, for customer satisfaction is the
most important consideration.

3. Effective involvement and utilization of the entire work force: This concept is
sometimes referred as “principle of employee’s involvement” or “respect for people”.
TQM is a team work. Total Quality recognizes that each person is responsible for the
quality of this work and for the work of the group. All persons must be trained in
TQM, Statistical Process Control (SPC) and other appropriate quality improvement
skills so that they can effectively participate on quality terms.

4. Continuous improvement: TQM is based on the quest for progress and improvement.
TQM believes that there is always a better way of doing things, way to make better
use of the company’s total quality resources, a way to be more productive. For this
purpose various quality tools and techniques may be used.

5. Treating suppliers as Partners: Since the suppliers influence the company’s quality,
therefore a partnering relationship should be developed between the management and
the suppliers.

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 6. Establishing performance measures for the processes: As we know, quantitative
data are necessary to measure the continuous quality improvement activity. Therefore
performance measures such as uptime, productivity, sales turnover, absenteeism,
percent non-conforming, customer satisfaction etc; should be determined for each
functional area. These results can be used for further improvement activities.

PRINCIPLES OF TQM:

1. Customers requirements - ( both internal & external) must be met first time & every

time

2. Everybody must be involved

3. Regular two way communication must be promoted

4. Identify the training needs and supply it to the employees

5. Top management commitment is must

6. Every job must add value

7. Eliminate waste & reduce total cost

8. Promote creativity

9. Focus on team work

10. Performance measures (department and individual levels)

TQM FRAME WORK:-

The TQM frame work summarizing the three important elements,

Three elements of TQM includes

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 1. The Philosophical Elements of TQM stress the operation of the company using

quality as the integrating element.

2. The Generic Tools consists of various statistical process control (SPC) methods that

are used for problem solving and continuous improvement by quality teams. Quality

function deployed is typically used by managers to drive the voice of the customers

into the organization.

3. Tools of the QC department consists of statistical quality control (SQC) methods

such as sampling plans, process capability and Taguchi methods.

TQM

Managing the Entire Organization so that it excels in all dimensions of

products and services that are important to the customers

Philosophical Elements Generic Tools Tools of the QC

 Customer driven quality  SPC tools: department
 Leadership 1. Process flow chart  SQC methods:
 Continuous improvement 2. Check sheets 1. Sampling plans
 Employee participation 3. Pareto analysis and 2. Process capability
and development histogram 3. Taguchi methods
 Quick response 4. Causes and effects (or  Benchmarking
 Design quality and fishbone) diagrams  Total preventive
prevention 5. Run charts maintenance
 Management by fact 6. Scatter diagrams
 Partnership development 7. Control charts
 Quality management  Quality function
systems deployment
 Environmental  New seven management
management systems tools
1. Affinity diagram
2. Relationship diagram
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3. Tree diagram
4. Matrix diagram
PILLARS OF TQM:-
There are four important pillars of the TQM house;
1) Problem solving discipline
2) Interpersonal skills
3) Teamwork
4) Quality improvement process.

 TQM is used to improve the whole organization stepwise.

 TQM is structured and systematically according to hard work, discipline, intensive
training and consistent implementation of techniques and resources.
 These quality principles form the foundation of TQM.

ACT PLAN

T M

CHECK DO
ty Improvement Process
lem Solving Discipline

nterpersonal Skills

Team work

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 Total Quality Management is an effective system for integrating the quality development,
quality maintenance and quality improvement efforts of various groups in an organization
continuously, so as to enable marketing, engineering, production and service at the most
economic levels which allow for full customer satisfaction.
The TQM is applied to many stages of Industrial Cycle which are listed below:
1. Marketing
2. Engineering
3. Purchasing
4. Manufacturing
5. Mechanical
6. Shipping
7. Installation and product service.

<Strong>Fundamental factors affecting Quality: (9 M’s)

1. Market
2. Money
3. Management
4. Men
5. Motivation
6. Materials
7. Machines and Mechanization
8. Modern Information Methods
9. Mounting Product Requirements

BENEFITS OF TQM:

Customer satisfaction oriented benefits:

1. Improvement in product quality

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 2. Improvement in product design
3. Improvement in production flow
4. Improvement in employee morale and quality consciousness
5. Improvement in product service
6. Improvement in market place acceptance
Economic improvement oriented benefits:

1. Reduction in operating costs

2. Reduction in operating losses

3. Reduction in field service costs

4. Reduction in liability exposure

GURUS OF TQM:-

SHEWHART - Control chart theory PDCA Cycle

DEMING - Statistical Process Control

JURAN - Concepts of SHEWHART Return on Investment ( ROI )

FEIGANBAUM - Total Quality Control Management involvement Employee

involvement Companywide quality control

ISHIKAWA - Cause and Effect Diagram Quality Circle concept

CROSBY - “Quality is Free” Conformance to requirements

TAGUCHI - Loss Function concept Design of Experiments

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BARRIERS IN IMPLEMENTING TQM:-

There are various roadblocks (obstacles or impediments) in implementing TQM. They are

1. Lack of Management Commitment

2. Inability to change Organizational culture
3. Misunderstanding about the concept of TQM
4. Improper planning
5. Lack of continuous training and education
6. Lack of employees commitment
7. Lack of effective communication
8. Lack of interest or incompetence of leaders
9. Incompatible organizational structure and isolated individuals and departments
10. Ineffective measurement techniques and lack of access to data and results
11. Non – application of proper tools and techniques
12. Paying inadequate attention to internal and external customers
13. Inadequate use of empowerment and teamwork
14. Failure to continually improve
15. Delay or non – implementation of quality improvement teams recommendations.

BENEFITS OF TQM:-

Tangible Benefits Intangible Benefits

 Improved Product quality  Improved Employee participation

 Improved Productivity
 Reduced quality costs
 Increased market and customers
 Increased Profitability
 Reduced employee grievances
 Improved Team work
 Improved Working relationships
 Improved Customer satisfaction
 Improved Employee satisfaction
 Improved Communication
 Enhancement of job interest
 Enhanced problem solving capacity
 Better company image

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CONTRIBUTIONS BY QUALITY GURUS
To fully understand the TQM movement, we need to look at the philosophies of
notable individuals who have shaped the evolution of TQM. Their philosophies and teachings
have contributed to our knowledge and understanding of quality today.
Walter A. Shewhart
Walter A. Shewhart was a statistician at Bell Labs during the 1920s and 1930s.
Shewhart studied randomness and recognized that variability existed in all manufacturing
processes. He developed quality control charts that are used to identify whether the variability
in the process is random or due to an assignable cause, such as poor workers or miscalibrated
machinery. He stressed that eliminating variability improves quality. His work created the
foundation for today’s statistical process control, and he is often referred to as the
―grandfather of quality control.

W. Edwards Deming is often referred to as the ―father of quality control. He was a

statistics professor at New York University in the 1940s. After World War II he assisted
many Japanese companies in improving quality. The Japanese regarded him so highly that in
1951 they established the Deming Prize, an annual award given to firms that demonstrate
outstanding quality. It was almost 30 years later that American businesses began adopting
Deming’s philosophy. A number of elements of Deming’s philosophy depart from traditional
notions of quality. The first is the role management should play in a company’s quality

GURUS OF TQM :
SHEWHART - Control chart theory
- PDCA Cycle
DEMING - Statistical Process Control
JURAN - Concepts of SHEWHART
- Return on Investment ( ROI )
FEIGANBAUM - Total Quality Control
- Management involvement
- Employee involvement
- Company wide quality control
ISHIKAWA - Cause and Effect Diagram
- Quality Circle concept
CROSBY - “Quality is Free”
- Conformance to requirements
TAGUCHI - Loss Function concept
- Design of Experiments

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 CONTRIBUTIONS OF DEMING

Understanding the Deming Management Philosophy

W. Edwards Deming called it the Shewhart cycle, giving credit to its inventor, Walter
A. Shewhart. The Japanese have always called it the Deming cycle in honor of the
contributions Deming made to Japan’s quality improvement efforts over many years. Some
people simply call it the PDCA—plan, do, check, and act—cycle. Regardless of its name, the
idea is well-known to process improvement engineers, quality professionals, quality
improvement teams and others involved in continuous improvement efforts.

The model can be used for the ongoing improvement of almost anything and it
contains the following four continuous steps: Plan, Do, Study and Act. Students, facilitated
by their teacher should be able to complete the following steps using information from a
classroom data center. Building staffs, facilitated by their principal or district quality
facilitators should be able to complete the steps of PDSA using information from a building
data center. Similarly, district level strategic planning committees can use the same process.

In the first step (PLAN), based on data, identify a problem worthy of study to effect
improvement. Define the specific changes you want. Look at the data [numerical
information] related to the current status. List a numerical measure for the future target.

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 In the second step (DO), the plan is carried out, preferably on a small scale. Identify
the process owners who are on the team. Within the action plan and on the storyboard,
explain why new steps are necessary. Collect and chart the baseline data. Form a hypothesis
of possible causes that are related to the current performance results. A quality tool such as a
fish-bone diagram or an affinity diagram would be useful at this stage. Implement the
strategy to bring about the change.

In the third step (STUDY), the effects of the plan are observed. Monitor the data. On
the baseline data chart, continue with the next data points. Explain when and how data
analysis with appropriate people takes place. Explain what is being learned though the
improvement process. Identify trends, if any can be discerned. Conduct a gap analysis. Use
comparisons, and benchmark [best practice] data. If the data result is negative, undergo
another cycle of PDSA.

In the last step (ACT), the results are studied to determine what was learned and what
can be predicted. If positive data result, standardize the process/strategy. Standardize and
keep the new process going. Repeat the cycle starting with PLAN to define a new change you
want.

William Edwards Deming was an American statistician, college professor, author,

lecturer, and consultant. Deming is widely credited with improving production in the United
States during World War II, although he is perhaps best known for his work in Japan. There,
from 1950 onward he taught top management how to improve design (and thus service),
product quality, testing and sales (the latter through global markets).

Deming made a significant contribution to Japan becoming renowned for producing

innovative high-quality products. Deming is regarded as having had more impact upon
Japanese manufacturing and business than any other individual not of Japanese heritage.
After World War II (1947), Deming was involved in early planning for the 1951 Japanese
Census. He was asked by the Department of the Army to assist in this census. While he was
there, his expertise in quality control techniques, combined with his involvement in Japanese
society, led to his receiving an invitation by the Japanese Union of Scientists and Engineers
(JUSE).

JUSE members had studied Shewhart’s techniques, and as part of Japan’s

reconstruction efforts they sought an expert to teach statistical control. During June August

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1950, Deming trained hundreds of engineers, managers, and scholars in statistical process
control (SPC) and concepts of quality. He also conducted at least one session for top
management. Deming’s message to Japan’s chief executives: improving quality will reduce
expenses while increasing productivity and market share. Perhaps the best known of these
management lectures was delivered at the Mt. Hakone Conference Center in August of 1950.

A number of Japanese manufacturers applied his techniques widely, and experienced

theretofore unheard of levels of quality and productivity. The improved quality combined
with the lowered cost created new international demand for Japanese products.

Deming declined to receive royalties from the transcripts of his 1950 lectures, so
JUSE’s board of directors established the Deming Prize (December 1950) to repay him for
his friendship and kindness. The Deming Prize, especially the Deming Application Prize that
is given to companies, has exerted an immeasurable influence directly or indirectly on the
development of quality control and quality management in Japan. In 1960, the Prime Minister
of Japan (Nobusuke Kishi), acting on behalf of Emperor Hirohito, awarded Dr. Deming
Japan’s Order of the Sacred Treasures, Second Class. The citation on the medal recognizes
Deming’s contributions to Japan’s industrial rebirth and its worldwide success.

The first section of the meritorious service record describes his work in Japan:
1. 1947 Rice Statistics Mission member
2. 1950 Assistant to the Supreme Commander of the Allied Powers
3. Instructor in sample survey methods in government statistics

The second half of the record lists his service to private enterprise through the
introduction of epochal ideas, such as quality control and market survey techniques

CONTRIBUTIONS OF JURAN

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 Joseph Juran
Juran expressed his approach to quality in the form of the Quality trilogy. Managing
for quality involved three basic processes:

 Quality Planning: This involves identifying the customer (both internal and external),
determining their needs, design goods and services to meet these needs at the established
quality and cost goals. Then design the process and transfer this to the operators.
 Quality Control: Establish standards or critical elements of performance, identify measures
and methods of measurements, compare actual to standard and take action if necessary.
 Quality Improvement: Identify appropriate improvement projects, organize the team,
discover the causes and provide remedies and finally develop mechanisms to control the new
process and hold the gains. The relationship among the three processes is shown in the
Quality Trilogy figure below:

The errors made during the initial planning result in a higher cost which Juran labeled
Chronic Waste: At the beginning, the process stays within control limits. A quality
improvement project is initiated and succeeds in reducing chronic waste. Juran also created
the concept of Cost of Quality. There are four elements comprising the cost of quality.
 Prevention Costs: Initial design quality, actions during product creation (e.g., marketing
research, establishing product specifications, determining consumer needs, training workers,
vendor evaluation, quality audit, preventive maintenance, etc.)

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 Appraisal Costs: Inspection testing of raw materials, work-in-progress, finished goods,
procedures for testing, training manuals, laboratories.
 External Costs: Returned merchandise, making warranty repairs or refunds, credibility loss,
lawsuits.
 Internal Costs: Scrap, rework, redesign, downtime, broken equipment, reduced yield, selling
products at a discount etc.
The graph in the following exhibit shows that costs of conformance (appraisal and
prevention) increase as defect rate declines. However, the costs of nonconformance (internal
and external failures) decrease. The trade-off leads to an optimal conformance level.

The Quality Trilogy

 Quality Planning: Determine quality goals; implementation planning; resource planning;
express goals in quality terms; create the quality plan.
 Quality Control: Monitor performance; compare objectives with achievements: act to reduce
the gap.
 Quality Improvement: Reduce waste; enhance logistics; improve employee morale; improve
profitability; satisfy customers.
Philosophy
 Management is largely responsible for quality
 Quality can only be improved through planning
 Plans and objectives must be specific and measurable
 Training is essential and starts at the top

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  Three step process of planning, control and action

The Quality Planning Roadmap

Step 1: Identify who are the customers
Step 2: Determine the needs of those customers
Step 3: Translate those needs into our language (the language of the organization)
Step 4: Develop a product that can respond to those needs
Step 5: Optimize the product features so as to meet the company’s needs as well as
customers needs
Step 6: Develop a process, which is able to produce the product
Step 7: Optimize the process
Step 8: Prove that the process can produce the product under operating conditions
Step 9: Transfer the process to operations

Ten Steps to Continuous Quality Improvement

Step 1: Create awareness of the need and opportunity for quality improvement
Step 2: Set goals for continuous improvement
Step 3: Build an organization to achieve goals by establishing a quality council,
identifying problems, selecting a project, appointing teams and choosing facilitators
Step 4: Give everyone training
Step 5: Carry out projects to solve problems
Step 6: Report progress
Step 7: Show recognition
Step 8: Communicate results
Step 9: Keep a record of successes.
Step10: Incorporate annual improvements into the company’s regular systems and
processes and thereby maintain momentum.

CONTRIBUTIONS OF CROSBY

Philip Crosby
Crosby described quality as free and argued that zero defects were a desirable and
achievable goal. He articulated his view of quality as the four absolutes of quality
management:

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 1. Quality means conformance to requirements. Requirements needed to be clearly
specified so that everyone knew what were expected of them.
2. With Quality comes prevention, and prevention was a result of training, discipline,
example, leadership, and more.
3. Quality performance standard is zero defects. Errors should not be tolerated.
4. Quality measurement is the price of nonconformance.

In addition to the above, Crosby developed a quality management maturity grid in

which he listed five stages of management’s maturity with quality issues. These five are
Uncertainty, Awakening, Enlightenment, Wisdom and Certainty. In the first stage,
management fails to see quality as a tool; problems are handled by “firefighting” and are
rarely resolved; there are no organized quality improvement activities. By the last stage, the
company is convinced that quality is essential to the company’s success; problems are
generally prevented; and quality improvement activities are regular and continuing.

Five absolutes of quality management: Philip B. Crosby

 Quality is defined as conformance to requirements, neither as ‘goodness’ nor
‘elegance’
 There is no such thing as a quality problem.
 It is always cheaper to do it right the first time.
 The only performance measurement is the cost of quality.
 The only performance standard is zero defects.

Crosby’s Quality Vaccine

 Integrity
 Dedication to communication and customer satisfaction
 Company-side policies and operations which support the quality thrust

Integrity

Communication Operations
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Fourteen Step Quality Programme: Philip B. Crosby
Step 1 Establish management commitment – it is seen as vital that the whole
management team participates in the programme; a half hearted effort will fail.
Step 2 Form quality improvement teams – the emphasis here is on multidisciplinary
team effort. An initiative from the quality departments will not be successful. It is
considered essential to build team work across arbitrary, and often artificial,
organizational boundaries.
Step 3 Establish quality measurements – these must apply to every activity throughout
the company. A way must be found to capture every aspect, design, manufacturing,
delivery and so on. These measurements provide a platform for the next step.
Step 4 Evaluate the cost of quality – this evaluation must highlight, using the
measures established in the previous step, where quality improvement will be
profitable.
Step 5 Raise quality awareness – this is normally undertaken through the training of
managers and supervisors, through communications such as videos and books, and by
displays of posters etc.
Step 6 Take actions to correct problems – this involves encouraging staff to identify
and rectify defects, or pass them on to higher supervisory levels where they can be
addressed.
Step 7 Zero defects planning – establish a committee, or working group to develop
ways to initiate and implement a zero defects programme.
Step 8 Train supervisors and managers – this step is focused on achieving
understanding by all managers and supervisors of the steps in the quality
improvement programme in order that they can explain it in turn.
Step 9 Hold a ‘Zero Defects’ day to establish the attitude and expectation within the
company. Crosby sees this as being achieved in a celebratory atmosphere
accompanied by badges, buttons and balloons.
Step 10 Encourage the setting of goals for improvement – goals are of course of no
value unless they are related to appropriate time-scales for their achievement.
Step 11 Obstacle reporting – This is encouragement to employees to advise
management of the factors which prevent them from achieving error free work. This
might cover defective or inadequate equipment, poor quality components, etc.
Step 12 Recognition for contributors – Crosby considers that those who contribute to
the programme should be rewarded through a formal, although non-monetary, reward

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 scheme. Readers may be aware of the ‘Gold Banana’ award given by Foxboro for
scientific achievement (Peters and Waterman, 1982).
Step 13 Establish quality councils – these are essentially forums composed of quality
professional and team leaders allowing them to communicate and determine action
plans for further quality improvement.
Step 14 Do it all over again – the message here is very simple – achievement of
quality is an ongoing process. However far you have got, there is always further to
go!

CONTRIBUTIONS OF DEMING:
1. Create and publish the Aims and Purposes of the organization.
2. Learn the New Philosophy.
3. Understand the purpose of Inspection.
4. Stop awarding business based on price alone.
5. Improve constantly and forever the System.
6. Institute Training.
7. Teach and Institute Leadership.
8. Drive out Fear, Create Trust and Create a climate for innovation.
9. Optimize the efforts of Teams, Groups and Staff areas.
10. Eliminate exhortations for the Work force.
11a. Eliminate numerical quotas for the work force
11b. Eliminate Management by objectives.
12. Remove Barriers that rob people of pride of workmanship.
13. Encourage Education and Self-improvement for everyone.
14. Take action to accomplish the transformation.
CONTRIBUTIONS OF JURAN:
THE JURAN TRILOGY
Juran views quality as fitness for use.
Juran Trilogy is designed to reduce the cost of quality over time.
1. QUALITY PLANNING
1. Determine internal & external customers.

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2. Their needs are discovered.
3. Develop product / service features.
4. Develop the processes able to produce the product / service features.
5. Transfer plans to operations.
2. QUALITY CONTROL
1. Determine items to be controlled.
2. Set goals for the controls.
3. Measure actual performance.
4. Compare actual performance to goals.
5. Act on the difference.
3. QUALITY IMPROVEMENT
1. Establishment of quality council.
2. Identify the improvement projects.
3. Establish the project teams with a project leader.
4. Provide the team with the resources

Contribution of Crosby
The Four absolutes of quality are
1. Quality is defined as conformance to requirements.
2. The system for causing Quality is prevention.
3. The performance standard must be zero defects.
4. The measurement of Quality is the Price of Nonconformance
Crosby’s Fourteen Points:
1. Management Commitment
2. Quality Improvement Team

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3. Quality Measurement
4. Cost of Quality Evaluation
5. Quality Awareness
6. Corrective Action
7. Establish an Ad Hoc Committee for the Zero Defects Program
8. Supervisor Training
9. Zero Defects Day
10. Goal Setting
11. Error Cause Removal
12. Recognition

13. Quality Councils

14. Do It Over Again
OBSTACLES (BARRIERS) IN IMPLEMENTING TQM:
1. Lack of Management Commitment
2. Inability to change Organizational culture
3. Improper planning
4. Lack of continuous training and education
5. Incompatible organizational structure and isolated individuals and
departments.
6. Ineffective measurement techniques and lack of access to data and
results.
7. Paying inadequate attention to internal and external customers
8. Inadequate use of empowerment and teamwork
9. Failure to continually improve
BENEFITS OF TQM
Customer satisfaction oriented benefits:
1. Improvement in product quality
2. Improvement in product design
3. Improvement in production flow

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4. Improvement in employee morale and quality consciousness
5. Improvement in product service
6. Improvement in market place acceptance
Economic improvement oriented benefits:
1. Reduction in operating costs
2. Reduction in operating losses
3. Reduction in field service costs
4. Reduction in liability exposure
QUALITY STATEMENTS
a. Vision statement,
b. Mission statement, and
c. Quality policy statement
1. The vision statement is a short declaration of what on organization
aspires to be
tomorrow.
2. It is the ideal state that might never be reached; but on which one will
work hard
continuously to achieve. Successful visions provide a brief guideline for
decision
making.
3. The vision statement should be coined in such a way that the leaders
and the
employees working in the organization should work towards the
achievements of
the vision statement.
a) The mission statement describes the function of the organization. It
provides a clear statement of purpose for employees, customers, and
suppliers.
b) The mission statement answers the following questions: who we are?
Who

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are our customers? ; What we do? and how we do it?
i. The quality policy is a guide for everyone in the organization as to
how they
provide products and service to the customers
ii. It should be written by the CEO with feedback from the workforce and
be
approved by the quality council.
iii. A quality policy is a important requirement of ISO 9000 quality
systems.
CUSTOMER FOCUS:
Customer is the King.
“Quality what the customer wants” It emphasis on the customer.
Customer
satisfaction must be the primary goal of any organization, therefore it is
essential
that every employee in the organization understands the importance of
the
customer. A satisfied customer will led to increased profits.
CUSTOMER SATISFACTION MODEL:
Customer satisfaction is not an objective but a feeling or attitude. Since it
is
subjective it is not easy to measure. There are so many facets to a
customer
experience with a product and service that need to be measured
individually to get
the accurate picture of customer satisfaction.
Customer Satisfaction Model – Teboul
Types of Customers:
1. Internal customers
2. External customers

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Internal Customers:
1. The customers inside the organization
2. The flow of work, product and service in the organization, each
department is
dependent on one and another.
3. Every person in a process is considered as the customer of the other
preceding
operation.
External Customers:
1. Uses the product or service
2. Who purchase the product.
3. Who influence the sale of the Product or services.
Kano Model

CUSTOMER COMPLAINTS:
Customer Satisfaction analysis helps the organization in the following
ways:
1. A totally satisfied customer contributes to revenue of the company.
2. A totally dissatisfied customer decrease revenue.
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

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5. To determine opportunities for improvement.
TOOLS OF CUSTOMER COMPLAINTS:
a. Comment card
b. Customer Questionnaire
c. Focus Groups
d. Toll Free telephone
e. Customer Visit
f. Report Card
g. Internet & Computers
h. Employee Feedback.
i. Mass customization
CUSTOMER RETENTION
It means “retaining the customer” to support the business. It is more
powerful and
effective than customer satisfaction.
For Customer Retention, we need to have both “Customer satisfaction &
Customer
loyalty”.
The following steps are important for customer retention.
1. Top management commitment to the customer satisfaction.
2. Identify and understand the customers what they like and dislike
about the
organization.
3. Develop standards of quality service and performance.
4. Recruit, train and reward good staff.
5. Always stay in touch with customer.
6. Work towards continuous improvement of customer service and
customer
retention.
7. Reward service accomplishments by the front-line staff.

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8. Customer Retention moves customer satisfaction to the next level by
determining what is truly important to the customers.
9. Customer satisfaction is the connection between customer satisfaction
and
bottom line.
COST OF QUALITY:
The Value of Quality must be based on its ability to contribute to profits.
Quality related cost is the cost incurred by an organization to ensure that
the
products / services it provides conform to customer requirements.
DEFINITION:
Quality cost is 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.”
a. Marketing / Customer/ User
b. Product / Service / Design Development
c. Purchasing
d. Operations
e. Quality Administration
APPRAISAL COST:
“The Cost incurred in assessing that the products / services conform to
the
requirements”
a. Purchasing Appraisal Cost
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b. Operation ( Manufacturing or Service ) Appraisal Cost
c. External Appraisal Cost
d. Review of test and inspection data:
e. Miscellaneous quality evaluation:
INTERNAL FAILURE COST:
“Cost arises due to internal failures.”
a. Product or Service Design Failure Cost:
b. Purchasing failure cost
c. 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.
Quality Improvement Strategy:
1. Project team:
2. Reduce the Failure cost:
3. Prevention of quality cost.
4. Reducing appraisal cost.

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