TQM Master Notes

EINSTEIN
COLLEGE OF ENGINEERING
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DEPARTMENT OF
MANAGEMENT STUDIES
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AN OVERVIEW OF
TOTAL QUALITY MANAGEMENT
Einstein College of Engineering

TOTAL QUALITY MANAGEMENT
 This note will just cover the overview of various topics
 This material does not cover all the topics of the syllabus
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 Problematic portions are not covered in this material
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 This material is just to guide not enlighten
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 Students are advised to follow prescribed text book along with
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this material
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UNIT – I
Definition of quality, dimensions of quality, quality planning, quality costs – Analysis Technique
for quality costs, Basic concept of TQM, Historical review, Principles of TQM, Leadership –
Concept, role of senior management, quality council, quality statements, strategic planning, Deming
Philosophy, Barriers of TQM implementation.
Unit Overview – This unit is introduction to the concept of TQM and how the top management has
to approach and understand the concept. TQM must come from the top management and also deals
the basic philosophy and difficulties of TQM
Total – Whole, entire, complete Quality – Excellence, class, meeting expectation

Management – organising, administering, art of getting things done
TQM is defined as both philosophy and a set of guiding principles that represent the foundation of
continuously improving organisation. It is the application of quantitative methods and human
resources to improve all the process within the organisation and exceed customer needs now and in
the future.
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TQM Basic Concepts
1. Management Involvement – Participate in quality program, develop quality council, direct
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2. Focus on customer – who is the customer – internal and external, voice of the customer, do it
right first time and every time.
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3. Involvement and utilisation of entire work force – All levels of management
4. Continuous improvement – Quality never stops, placing orders, bill errors, delivery, minimise
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wastage and scrap etc.

5. Treating suppliers as partners – no business exists without suppliers.
6. Performance measures – creating accountability in all levels
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Barriers in TQM Implementation

1. Lack of commitment from top management – avoiding training for self and employees, meetings
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2. Lack of employee involvement – particularly at managerial level, supportive attitude, trust

3. Lack of team work – Co-operation and co-ordination within workers.
4. Lack of customer oriented approach – Know the customer need, demand, taste, shortcomings
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5. Lack of attention to feedback and complaints –

6. Supplier control – in terms of materials, cost, quality, delivery etc
7. Review quality procedures – up gradation, correct past errors. Learn from experience
Historical Review of TQM

Industrialisation led to mass production in which it led to the concept of one product at a time to the
assembly line of production. Though workmanship was affected but mass production led to more
job and reduction in cost of the product and increase in quality, reduction of defects etc.
1924 – After WWI, W.A. Sherwat of Bell Telephone statistical chart for the control of various.
Concept of sample tests were followed. It was a failure in the initial stages.
1946 – ASQC American Society for Quality Control, now ASQ. Frequent meetings, conferences
and publications were made to public.
1950 – W.Edwards Demings his guidance and lecture to Japan engineers transformed quality
concepts in the organisation. His cycle ACT-PLAN-DO-CHECK
1954 – Joseph M.Juran Concept of efficient and productive. Juran Trilogy
Quality planning – Quality Control – Quality Improvement
1960 – Quality control circles was formed. Zero defects concepts
1970 – Reactive approach to proactive approach. Shift from Japan to USA
1980 – SPC – Statistical Process Control. Concepts of parameter and tolerance. Experiments
1990 – Concepts of certification of ISO, CMM etc
2000 – six sigma concept - Six Sigma stands for Six Standard Deviations (Sigma is the Greek letter
used to represent standard deviation in statistics) from mean. Six Sigma methodology provides the
techniques and tools to improve the capability and reduce the defects in any process.
Demings 14 Points Summarised
1. Create constancy of purpose and continual improvement

2. Adopt the new (Japanese) philosophy – by management and workers alike.
3. Do not depend on (quality) inspection – build quality into the product and process
4. Choose quality suppliers
5. Improve constantly – to reduce variation in all aspects
6. Training on the job – for workers and management.
7. Leadership not supervision – to get people to do a better job, not just meet targets.
8. Eliminate fear – encourage two-way communication, encourage employees
9. Break down internal barriers – department’s are “internal customers”
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10. Eliminate slogans (exhortations) – processes make mistakes not people.
11. Eliminate numerical targets – management by objectives not numbers
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12. Remover barriers to worker satisfaction – including annual appraisals
13. Encourage self improvement and education for all
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14. Everyone is responsible for continual improvement in quality and productivity –
particularly top management
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Quality – When a product or service meets or exceeds expectation considering the intended use and
the selling price.
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Quality = performance / expectation
Definition by ISO 9000:2000 It if defined as the degree to which a set of inherent characteristics
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fulfils requirement.
Degree – good, excellent, bad
Inherent – existing, within, natural
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Requirement – need or expectation

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Dimensions of quality
1. Performance - Fulfilment of primary requirement
2. Features - Additional things that enhance performance
3. Conformance - Meeting specific standards set by the industry
4. Reliability - Consistence performance over a period of time
5. Durability - Long life and less maintenance
6. Service - Ease of repair, guarantee, and warranty
7. Response - Dealer customer relationship, human interface
8. Aesthetics - exteriors, packages
9. Reputation - Past performance, ranking, branding
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
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 organisation 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.
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Pareto Analysis
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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
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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
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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
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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,
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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
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significance. Its objective is to separate the 'vital few' from the 'useful many.'
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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
 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)

TQM UNIT II
Customer satisfaction – Customer perception of quality, customer complaints, service quality, customer
retention, employee involvement – Motivation, Empowerment, Teams, recognition and rewards,
Performance appraisal, benefits, continuous process improvement – Juran trilogy, PDSA Cycle, 5S,
Kaizen, supplier partnership – Partnering, sourcing, supplier selection, supplier rating, relationship
development, Performance measures - Basic concepts, strategy, Performance measure
Unit Overview – This unit deals with the customer in focus what they expect in terms of quality and
their attitude towards a product or service. Then how a organization must focus and appraise the
employees in satisfying customers. Few commonly adopted process improvement like Juran, PDSA, 5S
and Kaizen. Last how the external suppliers contribute towards quality and an organization is mutually
dependent on suppliers.
Customer Satisfaction
Customer – A person who buys the product or service or even a consumer who may become future
customer
Customer Satisfaction
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1. Understanding customer needs
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2. Defining quality
3. Teboul Model – Penetration
Who is the customer

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4. Customer satisfaction is a process never ending
1. External customer – user of product or service, buyer and influencer

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2. Internal customer – for his personal use only
Basic Requirement of Internal and External Customers

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1. High level of quality – meeting all his needs

2. High degree of flexibility – product flexibility
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3. High levels of service – maximum service

4. Low costs – value for money, customers pride is that he has bought for the lowest cost
5. Quick response – Less waiting period, demo, billing, packing, delivery
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6. Little of no variability – minimum deviation from the target and expectation
Customer perception of quality

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Before 1988 – Performance, Prize and service

After 1989 – Performance, service and prize
ASQ – American Society for Quality
1. Performance – availability (ready for use), reliability (free from failure), maintainability
2. Features – psychological and technical. Added feature along with main usage
3. Service – intangible, made up of many small things
4. Warranty – Vs guarantee. Customer feels comfortable with this
5. Price – value for money, ready to pay at the same time comparative study to be done
6. Reputation – Branding merges with quality. Good exp reaches 6 bad reaches 15
Features of Feedback
Finds dissatisfaction – dissatisfied customer normally tend to report and register complaint
Priority for quality – Match between organization perceptions of quality to that of customer
Comparison with competitors – Evaluation by customers who would have known the competitors
Customer needs – The real needs of customers is known directly from the customer
Scope for improvement – Future enhancement in terms of quality

Sources of Feedback
1. Comment Card – card attached with the warranty to get the basic information. Asking reasons for
the purchase of product or service.
2. Questionnaire – Most popular. Mostly close ended and few open questions. Time consuming.
Analyze and interpret data.
3. Focus Group – Select few customer, call for a meeting and discuss and collect data from them.
Also ask them what their expectation is. Incentive for participation is assured in advance so that the
customer is comfortable and not forced to participate.
4. Toll Free Numbers – Free telephone customer can call for assistance, register complaints
5. Customer Visit – It is very effective as customer is put on top priority but at the same time
consuming, costly and customer interest.
6. Report Card – giving a grading sheet to the customer regarding the organization. Very effective,
customer is at pride that he could evaluate the product or service.
7. Internet – Online and email feedback. Though easy but not 100% reliable source and lot of
misrepresentation and lags seriousness on the part of the consumer.
8. Employee feedback – Untapped source of effective information. Customer says what is
happening employees say why it is happening. Reactive to proactive approach
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9. Mass Customization – make instant changes to the requirement of the customer. Dress materials,
computer, furniture etc.
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Complaints – Feedbacks are proactive complaints are reactive.
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Organization must take complaints as a proactive device for the future.
All complaints must be acknowledge as early as possible
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3. The complainant must get the information about the progress of the complaint
4. Dissatisfied customers complaints not adhered tend to move to the competitors
5. Small organization has the advantage of being in direct contact with the customer
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6. Frontline staffs get the direct complaint they must be trained to handle and take
decisions
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Handling complaints
1. Investigate the complaint promptly both positive and negative
2. Develop procedure for complaints, recording, actions to be taken, inform the staffs
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3. Categories the complaints – product, service, cost, ambience etc

4. Senior managers must have direct involvement
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5. Communicate the process of handling the complaints to all staffs

6. Provide regular complaints reports – complaints received, decisions taken etc
7. Identify customer expectations before hand
Service Quality
Shift in focus from manufacturing industry to service industry and the services involved in
manufacturing organization.
Customer service is the set of activities an organization uses to win, attract and retain customers. It can
be provided before, during and after the sale of the product.
Elements of customer service
Organization
1. Identify each segment – where the organization needs to concentrate on quality
2. Write down requirement – Proper documentation of quality policy in the form of a handbook
3. Communicate requirements – Inform its importance to all levels in the organisation
4. Organize process – create a systematic process as it is ongoing and never ending process
5. Organize physical spaces – aesthetics, atmosphere, room space, recreation, wifi etc
Customer Care – Henry Ford – The boss just handles the cash it is the customer who pays your
salary
1. Meet the customers expectation – treat all customers alike, respond quickly
2. Get the customer’s point of view – think in the point of view of a customer
3. Deliver what is promised – keep up promise at any cost
4. Make the customer feel valued – customer must feel that due respect and importance is given to him
5. Respond to all complaints – minimize complaints and eradicate similar and repeated complaints
6. Over-respond to customer – make him feel he is cloud nine
7. Provide clean and comfortable reception area – cleanliness, spacious, dress code, weather etc
Communication – All forms of communication written, verbal, advt, web site must prove
quality
1. Optimize trade off between time and personal attention
2. Minimize the number of contact points – channels and levels
3. Provide pleasant and knowledgeable enthusiastic employees
4. Write document in customer friendly language – simple and point blank
Front-line people – The people who have first and direct contact or interaction with the
customer
1. Hire people who like people – train groom them
2. Challenge them to develop better methods – small changes in packing, billing etc
3. Give them authority to solve problems – give discounts, free gifts etc
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4. Serve them as internal customers
5. Make sure they are adequately trained – written and oral communication, body language etc
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6. Recognize and reward performance - Nordstorm example obsess with the customer
Leadership
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1. Lead by example – spend time with all level, dealers and suppliers. Like having food , using co
product
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2. Listen to front line people
3. Strive for continuous process improvement
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Customer Retention
- It is the final result of customer satisfaction and customer loyalty
- Most cases what customer says or feels may vary from actual consumption or purchase
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- Customer must refer more customers and increase the revenue

- External research must be done to feel the pulse of the customer
- Employee retention is proportional customer retention
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Five S
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Seiri – Sorting, Seiton – Straighten, in Order, Seiso – Sweep, Seiketsu -Standardizing Shitsuke
Sustaining
Kaizen is defined as making ―continuous improvement‖ - slow, incremental but constant.

Western way of pragmatic approach ―why-fix-it-if-it-ain’t-broke‖ Kaizen extends a more optimistic
philosophical view: ―Everything—even if it ain’t broke—can be made better!‖
"kai― > Means "change" or "the action to correct" "zen― > means "good―
Importance is given to the process not the results, as Japanese believe that good process will deliver
good results.
Juran Trilogy
The Trilogy consists of three sequential and logical groups of activities:
– Quality Planning
– Quality Control
– Quality Improvement
All three processes are universal
– Applied to a particular process
– Performed by top management or by middle management
Juran Trilogy: A systematic and comprehensive system for break-through quality improvements
Quality Defined: meet customer needs and freedom from deficiencies
Trilogy Components
– Quality Planning – discover customer needs and deficiencies and design adequate
processes
– Quality Control -- compare actual performance to goals and take action on the
differences
– Quality Improvement -- the attainment of unprecedented levels of performance
PDCA Cycle – PLAN > DO > CHECK > ACT
The PDCA (or PDSA) Cycle was originally conceived by Walter Shewhart in 1930's, and later adopted
by W. Edwards Deming.
 The model provides a framework for the improvement of a process or system.
 It can be used to guide the entire improvement project
 It can be used to develop specific projects once target improvement areas have been identified.
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 Plan - a change or a test, aimed at improvement.
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 In this phase, analyze what you intend to improve, looking for areas that hold opportunities for
change.
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 The first step is to choose areas that offer the most return for the effort you put in-the biggest
bang for your buck.
 To identify these areas for change consider using a Flow chart or Pareto chart
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 Do - Carry out the change or test (preferably on a small scale).
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 Implement the change you decided on in the plan phase.

 Document the procedure and observation
 Use tools to collect information
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 Check or Study - the results. What was learned? What went wrong?
 This is a crucial step in the PDCA cycle. After you have implemented the change for a short
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time, you must determine how well it is working.

 Is it really leading to improvement in the way you had hoped? You must decide on several
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measures with which you can monitor the level of improvement.

 Run Charts can be helpful with this measurement.
 Act - Adopt the change, abandon it, or run the cycle again.
 After planning a change, implementing and then monitoring it, you must decide whether it is
worth continuing that particular change.
 If it consumed too much of your time, was difficult to adhere to, or even led to no
improvement, you may consider aborting the change and planning a new one.
 However, if the change led to a desirable improvement or outcome, you may consider
expanding the trial to a different area, or slightly increasing your complexity.
 This sends you back into the Plan phase and can be the beginning of the Ramp of
Improvement.
Supplier Partnership
Ten Principles of Customer/Supplier Relationship
1. Customer and supplier fully responsible for quality control
2. Customer and supplier must be independent and interdependent
3. The customer must provide clear information to the supplier
4. Proper understanding in quality, quantity, price, delivery and payments
5. Supplier must satisfy the customer need
6. Both must accept the evaluation in terms of quality and service
7. Contracts must be signed so the disputes can be settled amicably
8. Both must have exchange of information to improve quality and service
9. Both should strive for mutual satisfaction and good relationship
10. Both should think in the shoes of the end user.
Partnering
Benefits
1. Improved Quality
2. Increase efficiency
3. Lower cost
4. Increase the opportunity for innovation
5. Continuous improvement of product and service
Key Elements in Partnering

1. Long-term commitment
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2. Trust
3. Shared vision
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Performance Measures – It is systematic examination of quality performance. Performance measure
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helps to check the course of action and enhance the performance to the required standard.
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Objectives
1. Reveal trends
2. Identifies which process to be improved
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3. Indicates process gains and losses

4. Helps to compare performance with plan
5. Source of information to the individual and team
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6. Helps to decide the overall performance
Typical Measurements – What should be measured

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1. Human resource – loss of time by accident, late, absent. Training and its cost and effect etc
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2. Customer – complaints, delivery, warranty, replacement

3. Production – inventory, scraps, output etc
4. R & D – new product, redesign,
5. Suppliers – delivery, service, billing, accuracy etc
6. Marketing and sales – ad and its return, promotions, sales target
7. Administration – revenue, cost of quality, receipts and payments
Criteria – How to set measurements

1. Simple – easily understandable to all
2. Few in Number –
3. Developed by users – user input in measuring
4. Relevance to customers – measure must seek to benefit of the customer
5. Importance – focus on improvement, prevention, safety
6. Cost – measure must help in cost reduction and increase in profit
7. Visible – The measuring procedure must be known to all
8. Timely – Processing of data, creation of report etc

TQM UNIT III
Statistical Process Control – The seven tools of quality, Statistical Fundamentals – Measures of central
tendency and dispersion, Population and sample, Normal curve, control charts for variables and
attributes, Process capability, concept of six sigma, New seven management tools
Unit Overview: This unit deals in statistical ways to measure and calculate the impact of quality. Any
thing has to be measured and analyzed for which statistics plays a major role. The unit also gives idea of
new and old tools to analyze quality. The modern quality concept six sigma is also discussed here.
Statistics is a mathematical science pertaining to the collection, analysis, interpretation or explanation,

and presentation of data. It is applicable to a wide variety of academic disciplines, from the natural and
social sciences to the humanities, government and business.
The word statistics is also the plural of statistic (singular), which refers to the result of applying a
statistical algorithm to a set of data, as in economic statistics, crime statistics, etc.
Seven tools of Quality
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I - Pareto chart: Italian economist Vilfredo Pareto
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Shows on a bar graph which factors are more significant.
This method helps to find the vital few contributing maximum impact.
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Purpose: The purpose of the Pareto chart is to prioritize problems No company has enough resources
to tackle every problem, so they must prioritize.
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Pareto Principle: The Pareto concept was developed by the describing the frequency distribution of
any given characteristic of a population. Also called the 20-80 rule, he determined that a small
percentage of any given group (20%) account for a high amount of a certain characteristic (80%).
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Conclusion: The most important thing in improving quality is to start somewhere, doing
something. As you begin using the Pareto chart to decide where your problems are, you will discover
many things about your processes and will come because you will know where to improve.
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II - Flowchart: A technique that separates data gathered from a variety of sources so that patterns can
be seen (some lists replace "stratification" with or "run chart").
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Purpose: Flow Charts provide a visual illustration of the sequence of operations required to complete
a task.
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A picture of the steps the process undergoes to complete it's task.

Every process will require input(s) to complete it's task, and will provide output(s) when the task is
completed.
Flow charts can be drawn in many styles.
Flow charts can be used to describe a single process, parts of a process, or a set of processes. There is
no right or wrong way to draw a flow chart. The true test of a flow chart is how well those who create
and use it can understand it.
Input ---------------------Process----------------Output
III - Cause-and-Effect Diagrams - 1943 by Mr. Kaoru Ishikawa at the University of Tokyo
Purpose: One important part of process improvement is continuously striving to obtain more
information about the process and it's output. Cause-and-effect diagrams allow us to do not just that,
but also can lead us to the root cause, or causes, of problems.

Constructing the Cause-and-Effect Diagram:
Step 1: Select the team members and a leader. Team members knowledgeable about the quality. Team
members focus on the problem under investigation.
Step 2: Write the problem statement on the right hand side of the page, and draw a box around it with
an arrow running to it. This quality concern is now the effect.
Step 3: Brain-storming. The team members generate ideas as to what is causing the effect.
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Step 4: This step could be combined with step 3. Identify, for each main cause, its related sub-causes
that might affect our quality concern or problem (our Effect). Always check to see if all the factors
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contributing to the problem have been identified. Start by asking why the problem exists.
Step 5: Focus on one or two causes for which an improvement action(s) can be developed using other
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quality tools such as Pareto charts, check sheets, and other gathering and analysis tools.
Conclusion: Improvement requires knowledge. The more information we have about our processes
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the better we are at improving them. Cause-and-effect diagrams are one quality tool that is simple yet
very powerful in helping us better understand our processes.
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IV - Check Sheets
Purpose: Check sheets allow the user to collect data from a process in an easy, systematic, and
organized manner.
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Data Collection: Before we can talk about check sheets we need to understand what we mean by data
collection.
This collected data needs to be accurate and relevant to the quality problem.
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The first is to establish a purpose for collecting this data.

Second, we need to define the type of data that is going to be collected. Measurable data such as length,
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size, weight, time,...etc., and countable data such as the number of defects.
The third step is to determine who is going to collect that data and when it should be collected.
V- Histograms
Purpose: To determine the spread or variation of a set of data points in a graphical form. It is always a
desire to produce things that are equal to their design values.
Histograms: A histogram is a tool for summarizing, analyzing, and displaying data. It provides the
user with a graphical representation of the amount of variation found in a set of data.
Constructing a Histogram: The following are the steps followed in the construction of a histogram:
Data collection: To ensure good results, a minimum of 50 data points, or samples, need to be collected
Calculate the range of the sample data: The range is the difference between the largest and smallest
data points. Range = Largest point - smallest point.
Calculate the size of the class interval. The class interval is the width of each class on the X axis. It is
calculated by the following formula: Class interval = Range / Number of classes.
Calculate the number of data points (frequency) that are in each class. A tally sheet is usually used to
find the frequency of data points in each interval.
Conclusion: Histogram is simple tools that allow the user to identify and interpret the variation found
in a set of data points. It is important to remember that histograms do not give solutions to problems.
VI - Scatter Diagrams
Purpose: To identify correlations that might exist between a quality characteristic and a factor that
might be driving it.
Scatter Diagrams: A scatter diagram is a nonmathematical or graphical approach for identifying
relationships between a performance measure and factors that might be driving it. This graphical
approach is quick, easy to communicate to others, and generally easy to interpret.
Interpreting the Results: Once all the data points have been plotted onto the scatter diagram, you are
ready to determine whether their exists a relation between the two selected items or not. When a strong
relationship is present, the change in one item will automatically cause a change in the other. If no
relationship can be detected, the change in one item will not effect the other item. Their are three basic
types of relationships that can be detected to on a scatter diagram:
1. Positive relationship
2. Negative relationship
3. No relationship
Conclusion: Scatter diagrams allow the user to graphically identify correlations that could exist
between a quality characteristic and a factor that might be driving it. It is a quality tool that is simple,
easy to communicate to others, and generally easy to interpret.
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VII - Control Charts
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Purpose: Process is in control and to monitor process variation on a continuous basis. Identifying the
tolerance level in the variations. Control charts is one SPC tool that enables us to monitor and control
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process variation. Types of variation Common and Special Cause Variation
Control charts: Developed in the mid 1920's by Walter Shewhart of Bell labs. There are two basic
types of control charts, the average and range control charts. The first deals with how close the process
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is to the nominal design value, while the range chart indicates the amount of spread or variability
around the nominal design value. A control chart has basically three line: the upper control limit UCL,
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the center line CL, and the lower control limit LCL. A minimum of 25 points is required for a control
chart to be accurate.
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Measure of Central Tendency and Dispersion

Step 1: Do you want to measure the disperison with in the data?
Yes: Calculate the range ( Highest value - Lowest Value )
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Step 2: Do you want to know more about other observations in the data sets by avoiding the extreme
values?
Yes: Calculate the interquartile range (Q3-Q1)
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Step 3: Do you want a better measure of the dispersion that takes every observation in to account:
Yes: Calculate the variance of the population (to calculate Population variance each item in the
population by the total number of items in the population. By squaring each distance we are converting
the -ve values to the positive values and at the same time assigning more weightage to to the large
deviations).
Step 4: Do you want to a measure of dispersion with more convenient units?
Yes: Calculate the standard deviations where the standard deviation of the population is the square root
of population variance.
Step 5: Do you want to know how many standard deviation a particular observation lies below or
above the mean:
Yes: Calculate the standard score of the population
Step 6: Do you want to know a relative measure of magnitude of the standard deviation as compared to
the magnitude of the mean for use in comparing two distributions?
Yes: Calculate the coefficient of variation
Measure Central Tendency

The arithmetic mean is found by adding the numbers and dividing the sum by the number of numbers
in the list. This is what is most often meant by an average.
The median is the exact middle number. Place them in order from least to greatest and see which
number is in the middle.
The mode is the most frequently occurring value on the list.
Measure of Dispersion
Range = highest observation in a series – lowest observation in that series
Standard deviation
It measures the spreading tendency of the data
The smaller the deviation better the quality
Formula for SD
S = sample SD X = observed value X = average N = number of observed value
Population and Sample

A population is any entire collection of people, animals, plants or things from which we may collect
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data. It is the entire group we are interested in, which we wish to describe or draw conclusions about.
In order to make any generalisations about a population, a sample, that is meant to be representative of
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the population, is often studied. For each population there are many possible samples. A sample
statistic gives information about a corresponding population parameter. For example, the sample mean
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for a set of data would give information about the overall population mean.
It is important that the investigator carefully and completely defines the population before collecting
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the sample, including a description of the members to be included.
A sample is a group of units selected from a larger group (the population). By studying the sample it is
hoped to draw valid conclusions about the larger group.
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A sample is generally selected for study because the population is too large to study in its entirety. The
sample should be representative of the general population. This is often best achieved by random
sampling. Also, before collecting the sample, it is important that the researcher carefully and completely
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defines the population, including a description of the members to be included.
Control Charts
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When the quality controls have to focus on a quality characteristic hard or expensive to measure on a
numerical scale, the control chart for attributes are a useful alternative.
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Attributes concern quality characteristics which are able to be classified in two types, conform
and not conform to specifications. What is called nonconforming means that the unit controlled is not
conformed to standard on one or more of examined quality characteristics.
The goal of control charts for variable is still to control mean and variability of a process but
here, we focus of number of nonconforming units or nonconformities in a population. Three types of
charts exist. Their use depends on the production (which quality characteristic to control, how many to
examine), the characteristic of controls (constant or variable sample size):
 The p-chart: it is a control chart for fraction nonconforming
 The c-chart: it is a control chart for number of defects or nonconformities
 The u-chart: it is a control chart for number of nonconformities per unit
It is so to choose the best adapted control chart to the production.
The p-chart: Control chart for fraction nonconforming

The focus of the chart is the ratio of the number of nonconforming units in a population over
the total number of units in this population. This fraction is called ―p‖.
^ Di
pi 
^
where p : fraction of nonconforming
ni D : number of nonconforming units Einstein College
in the ith of Engineering
sample
n : sample size of the ith sample
In general, m samples of n units are tested but the sample size can be either constant or variable.
In the following, we study both cases.
1. For a constant sample size
Mathematical notions
If the sample size is constant, the formula for the value plotted on the p-chart is:
^ Di
pi 
n
The central line and control limits are computed as shown bellow: ^
i 1 pi
m

Central line p
n
n

 p (1  p)
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Limits UCL  p  3
n
es  
 p (1  p )
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LCL  p  3
n
To construct the p-chart, we plot the fraction nonconforming for each sample.
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The c-chart: Control chart for number of nonconformities observed

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The focus of the chart is the number of nonconformities in a population. This number is called
―c‖ and is directly plotted on a c-chart. In this case again, m samples of n units are controlled and the
sample size can be constant or not.
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For a constant sample size

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The central line and control limits are computed as shown bellow:

m
 c
Central c i 1
line m

Limits UCL  c 3 c

LCL  c  3 c
The u-chart: Control chart for number of nonconformities per unit
The u- chart is often used for controls where the sample size is variable. It consists plotting the
number of nonconformities per unit tested.
xi where u : average nonconformities per unit

ui  Einstein College of Engineering
x : number of total nonconformities in a
ni sample
n : sample size
Here are formulas for control chart characteristics:

m
_ xi
Central line
u  i 1

i m
i 1
ni
_
_
u
Limits UCL  u  3
ni
n
_
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_
u
es LCL  u  3
ni
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The scheme for building a u-chart is the same than the one for other charts.
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Seven New Management and Planning Tools

In 1976, the Union of Japanese Scientists and Engineers (JUSE) saw the need for tools to promote
innovation, communicate information and successfully plan major projects. A team researched and
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developed the seven new quality control tools, often called the seven management and planning
(MP) tools, or simply the seven management tools. Not all the tools were new, but their collection
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and promotion were.

The seven MP tools, listed in an order that moves from abstract analysis to detailed planning, are:
1. Affinity diagram: organizes a large number of ideas into their natural relationships.
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2. Relations diagram: shows cause-and-effect relationships and helps you analyze the natural
links between different aspects of a complex situation.
3. Tree diagram: breaks down broad categories into finer and finer levels of detail, helping you
move your thinking step by step from generalities to specifics.
4. Matrix diagram: shows the relationship between two, three or four groups of information
and can give information about the relationship, such as its strength, the roles played by
various individuals, or measurements.
5. Matrix data analysis: a complex mathematical technique for analyzing matrices, often
replaced in this list by the similar prioritization matrix. One of the most rigorous, careful and
time-consuming of decision-making tools, a prioritization matrix is an L-shaped matrix that
uses pairwise comparisons of a list of options to a set of criteria in order to choose the best
option(s).
6. Arrow diagram: shows the required order of tasks in a project or process, the best schedule
for the entire project, and potential scheduling and resource problems and their solutions.
7. Process decision program chart (PDPC): systematically identifies what might go wrong in a
plan under development.

Affinity Diagram
This tool takes large amounts of disorganized data and information and enables
one to organize it into groupings based on natural relationships. It was created
in the 1960s by Japanese anthropologist Jiro Kawakita.
Interrelationship Diagraph
This tool displays all the interrelated cause-and-effect relationships and factors
involved in a complex problem and describes desired outcomes. The process of
creating an interrelationship diagraph helps a group analyze the natural links
between different aspects of a complex situation.
Tree Diagram
This tool is used to break down broad categories into finer and finer levels of
detail. It can map levels of details of tasks that are required to accomplish a goal
or task. It can be used to break down broad general subjects into finer and finer
levels of detail. Developing the tree diagram helps one move their thinking from
generalities to specifics.
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Prioritization Matrix
This tool is used to prioritize items and describe them in terms of weighted
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criteria. It uses a combination of tree and matrix diagraming techniques to do a
pair-wise evalutaion of items and to narrow down options to the most desired
Matrix Diagram
or most effective. es
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This tool shows the relationship between items. At each intersection a
relationship is either absent or present. It then gives information about the
relationship, such as its strength, the roles played by various individuals or
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measurements. Six differently shaped matrices are possible: L, T, Y, X, C and

roof-shaped, depending on how many groups must be compared.
Process Decision Program Chart (PDPC)
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A useful way of planning is to break down tasks into a hierarchy, using a Tree
Diagram. The PDPC extends the tree diagram a couple of levels to identify risks
and countermeasures for the bottom level tasks. Different shaped boxes are
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used to highlight risks and identify possible countermeasures (often shown as

'clouds' to indicate their uncertain nature). The PDPC is similar to the Failure
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Modes and Effects Analysis (FMEA) in that both identify risks, consequences
of failure, and contingency actions; the FMEA also rates relative risk levels for
each potential failure point.
Activity Network Diagram
This tool is used to plan the appropriate sequence or schedule for a set of tasks
and related subtasks. It is used when subtasks must occur in parallel. The
diagram enables one to determine the critical path (longest sequence of tasks).
(See also PERT diagram.)
Six Sigma has evolved over the last two decades and so has its definition. Six Sigma has literal,
conceptual, and practical definitions.
Features that set Six Sigma apart from previous quality improvement initiatives include –
 A clear focus on achieving measurable and quantifiable financial returns from any project.
 An increased emphasis on strong and passionate management leadership and support. [1]
 A special infrastructure of "Champions," "Master Black Belts," "Black Belts," etc. to lead and
implement the Six Sigma approach.[1]
 A clear commitment to making decisions on the basis of verifiable data, rather than assumptions
and guesswork.[1]
At Motorola University, we think about Six Sigma at three different levels:
 As a metric
 As a methodology
 As a management system
Essentially, Six Sigma is all three at the same time.
Six Sigma as a Metric
The term "Sigma" is often used as a scale for levels of "goodness" or quality. Using this scale, "Six
Sigma" equates to 3.4 Defects Per Million Opportunities (DPMO). Six Sigma started as a defect
reduction effort in manufacturing and then applied to other business processes for the same purpose.
Taking the 1.5 sigma shift into account, short-term sigma levels correspond to the following long-term
DPMO values (one-sided):
 One Sigma = 690,000 DPMO => efficiency 31%
 Two Sigma = 308,000 DPMO => efficiency 69.2%
 Three Sigma = 66,800 DPMO => efficiency 93.32%
 Four Sigma = 6,210 DPMO => efficiency 99.379%
 Five Sigma = 230 DPMO => efficiency 99.977%
 Six Sigma = 3.4 DPMO => efficiency 99.9997%
Six Sigma as a Methodology
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As Six Sigma has evolved, there has been less emphasis on the literal definition of 3.4 DPMO, or
counting defects in products and processes. Six Sigma is a business improvement methodology that
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focuses an organization on:
 Understanding and managing customer requirements
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 Aligning key business processes to achieve those requirements
 Utilizing rigorous data analysis to minimize variation in those processes
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 Driving rapid and sustainable improvement to business processes
At the heart of the methodology is the DMAIC model for process improvement. DMAIC is commonly
used by Six Sigma project teams and is an acronym for:
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DMAIC - The basic methodology consists of the following five steps:

 Define process improvement goals that are consistent with customer demands and the enterprise
strategy.
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 Measure key aspects of the current process and collect relevant data.
 Analyze the data to verify cause-and-effect relationships. Determine what the relationships are,
and attempt to ensure that all factors have been considered.
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 Improve or optimize the process based upon data analysis using techniques like Design of
Experiments.
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 Control to ensure that any deviations from target are corrected before they result in defects. Set
up pilot runs to establish process capability, move on to production, set up control mechanisms
and continuously monitor the process.
DMADV
The basic methodology consists of the following five steps:
 Define design goals that are consistent with customer demands and the enterprise strategy.
 Measure and identify CTQs (characteristics that are Critical To Quality), product capabilities,
production process capability, and risks.
 Analyze to develop and design alternatives, create a high-level design and evaluate design
capability to select the best design.
 Design details, optimize the design, and plan for design verification. This phase may require
simulations.
 Verify the design, set up pilot runs, implement the production process and hand it over to the
process owners.
Implementation roles - One of the key innovations of Six Sigma is the professionalizing of quality
management functions. Prior to Six Sigma, quality management in practice was largely relegated to
the production floor and to statisticians in a separate quality department. Six Sigma borrows martial

arts ranking terminology to define a hierarchy (and career path) that cuts across all business
functions and a promotion path straight into the executive suite.
Six Sigma identifies several key roles for its successful implementation. [12]
 Executive Leadership includes the CEO and other members of top management. They are
responsible for setting up a vision for Six Sigma implementation. They also empower the other
role holders with the freedom and resources to explore new ideas for breakthrough
improvements.
 Champions are responsible for Six Sigma implementation across the organization in an integrated
manner. The Executive Leadership draws them from upper management. Champions also act
as mentors to Black Belts.
 Master Black Belts, identified by champions, act as in-house coaches on Six Sigma. They devote
100% of their time to Six Sigma. They assist champions and guide Black Belts and Green Belts.
Apart from statistical tasks, their time is spent on ensuring consistent application of Six Sigma
across various functions and departments.
 Black Belts operate under Master Black Belts to apply Six Sigma methodology to specific
projects. They devote 100% of their time to Six Sigma. They primarily focus on Six Sigma
project execution, whereas Champions and Master Black Belts focus on identifying
projects/functions for Six Sigma.
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 Green Belts are the employees who take up Six Sigma implementation along with their other job
responsibilities. They operate under the guidance of Black Belts.
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es
at
pd
hu
es
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TQM UNIT IV
TQM Tools
Benchmarking – Reasons to Benchmark, Benchmarking process, Quality Function Deployment QFD –
House of Quality, QFD Process, Benefits, Taguchi Quality Loss Function, Total Productive
Maintenance TPM – Concept and improvement needs FMEA – Stages of FMEA
Unit Over view: This unit covers the new topic of benchmarking wherein an organization has to set
standard with the industry and other similar companies. QFD in keeping in mind of voice of the
customer. Later house of quality which is deals with WHAT the customer wants and HOW the
organization must meet it. Most importantly in this unit deals with loss function, FMEA and TPM
which deals the negative aspects of business.
"Benchmarking is the process of measuring an organization's internal processes then identifying,

understanding, and adapting outstanding practices from other organizations considered to be best-in-
class.
"Benchmarking: A continuous, systematic process of evaluating and comparing the capability of one
organization with others normally recognized as industry leaders, for insights for optimizing the
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organizations processes."
Benchmarking is the process of comparing the cost, time or quality of what one organization does
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against what another organization does. The result is often a business case for making changes in order
to make improvements.
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―The systematic process of comparing an organization’s products, services and practices against those
of competitor organizations or other industry leaders to determine what it is they do that allows them
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to achieve high levels of performance.‖ (Society for Human Resources Management)
Advantages of benchmarking
Benchmarking is a powerful management tool because it overcomes "paradigm blindness."
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Benchmarking opens organizations to new methods, ideas and tools to improve their effectiveness. It
helps crack through resistance to change by demonstrating other methods.
Allows employees to visualise the improvement which can be a strong motivator for change
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Helps to identify weak areas and indicates what needs to be done to improve.
The Benchmarking process
The formal 10-step benchmarking process is shown in outline below.
es
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The benchmarking process consists of following phases:

1. Planning. The essential steps are those of any plan development: what, who and how.
 What is to be benchmarked? Every function of an organization has or delivers a ―product‖
or output. Benchmarking is appropriate for any output of a process or function, whether it’s a
physical good, an order, a shipment, an invoice, a service or a report.

 To whom or what will we compare? Business-to-business, direct competitors are certainly
prime candidates to benchmark. But they are not the only targets. Benchmarking must be
conducted against the best companies and business functions regardless of where they exist.
 How will the data be collected? There’s no one way to conduct benchmarking investigations.
There’s an infinite variety of ways to obtain required data – and most of the data you’ll need are
readily and publicly available. Recognize that benchmarking is a process not only of deriving
quantifiable goals and targets, but more importantly, it’s the process of investigating and
documenting the best industry practices, which can help you achieve goals and targets.
2. Analysis. The analysis phase must involve a careful understanding of your current process and
practices, as well as those of the organizations being benchmarked. What is desired is an understanding
of internal performance on which to assess strengths and weaknesses. Ask:
 Is this other organization better than we are?
 Why are they better?
 By how much?
 What best practices are being used now or can be anticipated?
 How can their practices be incorporated or adapted for use in our organization?
Answers to these questions will define the dimensions of any performance gap: negative, positive or
parity. The gap provides an objective basis on which to act—to close the gap or capitalize on any
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advantage your organization has.
3. Integration. Integration is the process of using benchmark findings to set operational targets for
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change. It involves careful planning to incorporate new practices in the operation and to ensure
benchmark findings are incorporated in all formal planning processes.
Steps include: es
 Gain operational and management acceptance of benchmark findings. Clearly and convincingly
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demonstrate findings as correct and based on substantive data.
 Develop action plans.
 Communicate findings to all organizational levels to obtain support, commitment and
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ownership.
4. Action. Convert benchmark findings, and operational principles based on them, to specific actions
to be taken. Put in place a periodic measurement and assessment of achievement. Use the creative
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talents of the people who actually perform work tasks to determine how the findings can be
incorporated into the work processes.
Any plan for change also should contain milestones for updating the benchmark findings, and an
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ongoing reporting mechanism. Progress toward benchmark findings must be reported to all employees.
5. Maturity. Maturity will be reached when best industry practices are incorporated in all business
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processes, thus ensuring superiority.

Tests for superiority:
 If the now-changed process were to be made available to others, would a knowledgeable
businessperson prefer it?
 Do other organizations benchmark your internal operations?
Maturity also is achieved when benchmarking becomes an ongoing, essential and self-initiated facet of
the management process. Benchmarking becomes institutionalized and is done at all appropriate levels
of the organization, not by specialists.
Types of Benchmarking
Process benchmarking - the initiating firm focuses its observation and investigation of business
processes with a goal of identifying and observing the best practices from one or more benchmark
firms. Activity analysis will be required where the objective is to benchmark cost and efficiency;
increasingly applied to back-office processes where outsourcing may be a consideration.
Financial benchmarking - performing a financial analysis and comparing the results in an effort to
assess your overall competitiveness.
Performance benchmarking - allows the initiator firm to assess their competitive position by
comparing products and services with those of target firms.

Product benchmarking - the process of designing new products or upgrades to current ones. This
process can sometimes involve reverse engineering which is taking apart competitors products to find
strengths and weaknesses.
Strategic benchmarking - involves observing how others compete. This type is usually not industry
specific meaning it is best to look at other industries.
Functional benchmarking - a company will focus its benchmarking on a single function in order to
improve the operation of that particular function. Complex functions such as Human Resources,
Finance and Accounting and Information and Communication Technology are unlikely to be directly
comparable in cost and efficiency terms and may need to be disaggregated into processes to make valid
comparison
IN A NUTSHELL
Quality Function Deployment (QFD) is a way of making the 'voice of the customer' heard
throughout an organization. It is a systematic process for capturing customer requirements and
translating these into requirements that must be met throughout the 'supply chain'. The result is a
new set of target values for designers, production people, and even suppliers to aim at in order to
produce the output desired by customers.
QFD is particularly valuable when design trade-offs are necessary to achieve the best overall
solution, e.g. because some requirements conflict with others. QFD also enables a great deal of
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information to be summarized in the form of one or more charts. These charts capture customer
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and product data gleaned from many sources, as well as the design parameters chosen for the new
product. In this way they provide a solid foundation for further improvement in subsequent
design cycles.
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QFD is sometimes referred to by other 'nicknames' - the voice of the customer (from its use as a
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way of communicating customer needs), or the House of Quality (from the characteristic house
shape of a QFD chart).
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HISTORY
The creation of QFD is generally attributed to Mitsubishi's Kobe shipyard in Japan. The original
approach, conceived in the late 1960's, was adopted and developed by other Japanese companies,
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notably Toyota and its suppliers. In 1986 a study by the Japanese Union of Scientists and
Engineers (JUSE) revealed that 54% of 148 member companies surveyed were using QFD. The
sectors with the highest penetration of QFD were transportation (86%), construction (82%),
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electronics (63%), and precision machinery (66%). Many of the service companies surveyed (32%)
were also using QFD. Specific design applications in Japan range from home appliances and
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clothing to retail outlets and apartment layouts.

In the USA the first serious exponents of QFD were the 'big three' automotive manufacturers in
the 1980's, and a few leading companies in other sectors such as electronics. However, the uptake
of QFD in the Western world appears to have been fairly slow. There has been no survey
comparable to the JUSE study regarding the spread of QFD in North America, and there are
relatively few sources of literature and case studies, compared with other methodologies such as
Benchmarking.
There is also some reluctance among users of QFD to publish and share information - much
more so than with other quality-related methodologies. This may be because the data captured
and the decisions made using QFD usually relate to future product plans, and are therefore
sensitive, proprietary, and valuable to competitors.
BENEFITS OF QFD
The main 'process' benefits of using QFD are:
 improved communication and sharing of information within a cross-functional team
charged with developing a new product. This team will typically include people from a

variety of functional groups, such as marketing, sales, service, distribution, product
engineering, process engineering, procurement, and production
 the identification of 'holes' in the current knowledge of the design team
 the capture and display of a wide variety of important design information in one place in a
compact form
 support for understanding, consensus, and decision making, especially when complex
relationships and trade-offs are involved
 the creation of an informational base which is valuable for repeated cycles of product
improvement
The main 'bottom line' benefits of using QFD are:
 greater likelihood of product success in the marketplace, due to the precise targeting of key
customer requirements
 reduced overall design cycle time, mainly due to a reduction in time-consuming design
changes. This is a powerful benefit: customer requirements are less likely to have changed
since the beginning of the design project; and more frequent design cycles mean that
products can be improved more rapidly than the competition
 reduced overall cost due to reducing design changes, which are not only time consuming but
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very costly, especially those which occur at a late stage.
 reduced product cost by eliminating redundant features and over-design.
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When to use QFD
QFD is a powerful tool that leads to significant improvements in product/process performances.
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However, it is not a short-term answer to product development problems. The method on which QFD
is implemented may have a large impact on benefits derived and companies should take up QFD only
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after getting the consent and commitment of the team members.
QFD provides a systematic approach to build a team perspective on what needs to be done, the best
ways to do it, the best order to accomplish the tasks proposed and the staffing and resources required
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to enhance customer satisfaction. It is also a good format for capturing and recording/documenting
decision making. Applied through the Kaizen philosophy under Total Quality Control, QFD is the
most highly developed form of integrated product and process development in existence.
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Strengths and weaknesses of QFD

Strengths include:
1. Enhanced customer satisfaction
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 Listening to the voice of the customer

 Robust design
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2. Shorter time to market

 Reduced rework during development
 Creates team consensus and commitment
3. Reduced costs
 Competitive benchmarking
 Concurrent Engineering
Weaknesses
 Targets set based only on the House of Quality, may be unrealistic
 Customer requirements are a mix of functional requirements and customer attributes
 Sometimes customer influences may backfire
Success with QFD
Companies using QFD for product development have on the average, experienced:
 50% reduction in costs
 33% reduction in product development time
 200% increase in productivity
Companies that have successfully applied QFD include Toyota, Honda, ICI, Black & Decker,
Integrated Design Control Systems and Rover.

Failure modes and effects analysis (FMEA) is a procedure for analysis of potential failure modes
within a system for the classification by severity or determination of the failures' effect upon the system.
It is widely used in the manufacturing industries in various phases of the product life cycle and is now
increasingly finding use in the service industry as well. Failure causes are any errors or defects in
process, design, or item especially ones that affect the customer, and can be potential or actual. Effects
analysis refers to studying the consequences of those failures.
Step 1: Severity
Determine all failure modes based on the functional requirements and their effects. Examples of failure
modes are: Electrical short-circuiting, corrosion or deformation. It is important to note that a failure
mode in one component can lead to a failure mode in another component. Therefore each failure
mode should be listed in technical terms and for function. Hereafter the ultimate effect of each failure
mode needs to be considered. A failure effect is defined as the result of a failure mode on the function
of the system as perceived by the user. In this way it is convenient to write these effects down in terms
of what the user might see or experience. Examples of failure effects are: degraded performance, noise
or even injury to a user. Each effect is given a severity number(S) from 1(no danger) to 10(important).
These numbers help an engineer to prioritize. If the severity of an effect has a number 9 or 10, actions
are considered to change the design by eliminating the failure mode, if possible, or protecting the user
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from the effect. A severity rating of 9 or 10 is generally reserved for those effects which would cause
injury to a user or otherwise result in litigation.
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Step 2: Occurrence
In this step it is necessary to look at the cause of a failure and how many times it occurs. This can be
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done by looking at similar products or processes and the failures that have been documented for them.
A failure cause is looked upon as a design weakness. All the potential causes for a failure mode should
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be identified and documented. Again this should be in technical terms. Examples of causes are:
erroneous algorithms, excessive voltage or improper operating conditions. A failure mode is given a
probability number(O),again 1-10. Actions need to be determined if the occurrence is high (meaning
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>4 for non safety failure modes and >1 when the severity-number from step 1 is 9 or 10). This step is
called the detailed development section of the FMEA process.
Step 3: Detection
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When appropriate actions are determined, it is necessary to test their efficiency. Also a design
verification is needed. The proper inspection methods need to be chosen. First, an engineer should
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look at the current controls of the system, that prevent failure modes from occurring or which detect
the failure before it reaches the customer. Hereafter one should identify testing, analysis, monitoring
and other techniques that can be or have been used on similar systems to detect failures. From these
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controls an engineer can learn how likely it is for a failure to be identified or detected. Each
combination from the previous 2 steps, receives a detection number(D). This number represents the
ability of planned tests and inspections at removing defects or detecting failure modes.
After these 3 basic steps, Risk Priority Numbers (RPN) are calculated.
Risk Priority Numbers
RPN do not play an important part in the choice of an action against failure modes. They are more
threshold values in the evaluation of these actions.
After ranking the severity, occurrence and detectability the RPN can be easily calculated by multiplying
these 3 numbers: RPN = S x O x D
This has to be done for the entire process and/or design. Once this is done it is easy to determine the
areas of greatest concern. The failure modes that have the highest RPN should be given the highest
priority for corrective action. This means it is not always the failure modes with the highest severity
numbers that should be treated first. There could be less severe failures, but which occur more often
and are less detectable.
QFD – House of Quality
MEANING: The voice of the customer from the market research and various benchmarking is linked
to the technicalities of the design and process of the product both new and existing.

DEFINITION: It is kind of conceptual map that provides a means of interfunctional planning and
communication.
FEATURES:
- Concept of matrix and its correlation
- Plan as per the voice of the customer
- Focus on Customers need and technicalities
- WHAT the Customer wants and HOW to do it
- It is base tool for quality planning managers
 WHAT - Customer requirement and priority

 HOW – Technical description and priority
 Relationship with WHAT and HOW the main area
 Interrelationships – Roof the cause of concern and importance
Step I – List customer requirement

―WHAT‖ – Decide Primary and secondary needs of the customer
Step II – List technical descriptions “HOW”
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Again primary and secondary is decided
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Primary – Material and Process
Subdividing materials and process required
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Here current materials and process must be considered
Step III – Relation ship matrix between WHAT & HOW
The crucial stage
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Relating WHAT & HOW
Interlinking both primary and secondary
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No scope for variation

Points and grading is done here
Gives results of WHAT and HOW
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Key elements are discussed

The Management decides the combination
Costing and current process must be considered
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Step IV – Interrelation matrix between HOW’s

The materials and manufacturing is analyzed
Ratings are done
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Enables the decisions in the process

Current process to be considered
Technical knowledge is a must for the analyst
Step V – Our product with others
Analyzing competitors products customer expectation
Difficult to get data
Mismatch in requirements is possible
Helps in identifying customer trend
Step VI – Technical Competitive assessment
Analyzing how the similar companies are handling
To what they give importance.
Impact on technical process to meet the customers request.
Step VII – Prioritize Technical Descriptors
Degree of technical difficulty
Most needed change is decided
Target value
Physical attributes to be considered
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House of Quality Benefits

 Orderly way of obtaining information
 Shorter product development cycle
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 Considerably reduced start up cost

 Fewer engineering changes
 Reduces design process
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 Leads to teamwork
 Consensus decision
 Everything is preserved in writing
Taguchi Quality Loss Function - L(y) = k(y-m)2

L(y) = Loss
k = constant = cost to correct
tolerance2
y = reported value m = mean value (average)
(Taguchi On Robust Technology p. 22)
Timing of FMEA
The FMEA should be updated whenever:
At the beginning of a cycle (new product/process)
Changes are made to the operating conditions
A change is made in the design
New regulations are instituted
Customer feedback indicates a problem
Uses of FMEA
Development of system requirements that minimize the likelihood of failures.
Development of methods to design and test systems to ensure that the failures have been eliminated.
Evaluation of the requirements of the customer to ensure that those do not give rise to potential
failures.
Identification of certain design characteristics that contribute to failures, and minimize or eliminate
those effects.
Tracking and managing potential risks in the design. This helps avoid the same failures in future
projects.
Ensuring that any failure that could occur will not injure the customer or seriously impact a system.
Advantages
Improve the quality, reliability and safety of a product/process
Improve company image and competitiveness
Increase user satisfaction
Reduce system development timing and cost
Collect information to reduce future failures, capture engineering knowledge
Reduce the potential for warranty concerns
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Early identification and elimination of potential failure modes
Emphasis problem prevention
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Minimize late changes and associated cost
Catalyst for teamwork and idea exchange between functions
Disadvantages es
If used as a top-down tool, FMEA may only identify major failure modes in a system. Fault tree
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analysis (FTA) is better suited for "top-down" analysis. When used as a "bottom-up" tool FMEA can
augment or complement FTA and identify many more causes and failure modes resulting in top-level
symptoms. It is not able to discover complex failure modes involving multiple failures within a
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subsystem, or to report expected failure intervals of particular failure modes up to the upper level
subsystem or system.
Additionally, the multiplication of the severity, occurrence and detection rankings may result in rank
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reversals, where a less serious failure mode receives a higher RPN than a more serious failure mode.
The reason for this is that the rankings are ordinal scale numbers, and multiplication is not a valid
operation on them. The ordinal rankings only say that one ranking is better or worse than another, but
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not by how much. For instance, a ranking of "2" may not be twice as bad as a ranking of "1," or an "8"
may not be twice as bad as a "4," but multiplication treats them as though they are. See Level of
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measurement for further discussion.
Total Productive Maintenance

Total = Overall features for production
Productive = production of goods and services that meet expectation
Maintenance = Keeping the equipments and plant as good as new and working condition
Goals of TPM
Maintaining and Improving equipment capacity
Maintaining equipment for longer life
Using support from all areas of operation
Encouraging input from all employees
Continuous improvement
Improvement needs
Machines expected to fail at one point or another – minimise that risk
Employees who use and work that machine give the first hand information

Six major loss areas in terms of time
Downtime loss
1. Planned – i) start ups ii) Shift change iii) tea / lunch breaks iv) planned maintenance
2. Unplanned – i) Equipment breakdown ii) changeovers iii)lack of materials
3. Idling and minor stoppages
4. Slow downs
5. Process change
6. Scraps
Calculating Equipment Effectiveness
Downtime loss measured by equipment availability

A = (T/P) X 100
A – availability, T – operating time (P – D), P – Planned operation time D- Downtime
Performance efficiency
E = (CXN/T) X 100
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E – Performance efficiency, C – Theoretical cycle time, N – Processed amount (qty)
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Rate of quality products
R = (N-Q/N)X 100
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R – Rate of quality products, N = Processed amount Q – nonconformities
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Equipment effectiveness
EE = AXEXR
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UNIT V
Need for ISO, 9000 and other quality systems, ISO 9000:2000 Quality systems – Elements,
Implementation of quality system, Documentation, Quality Auditing, TS 16949, ISO 14000 – Concept,
Requirement and Benefits
Unit overview: This unit mainly focuses on external certification particularly ISO. Why and
organisation needs to go for such certifications. What are the various types of certification and sector
specific certification etc. Concept of QMS is discussed and its need for ISO 9000 series. The lateral part
deals with EMS and ISO certification in regard to Environment that is ISO 14000 series.
History of ISO – International Organisation for Standardisation

Post World War II – BS 5750
ISO founded in 1946 Switzerland, Geneva.
1987 - ISO 9000: 1987 - Three models of quality
ISO 9001: 1987 – Design Development etc
ISO 9002: 1987 – Production, installation, service etc
ISO 9003: 1987 – Quality assurance, inspection, testing etc
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ISO 9000:1994
ISO 9001: 2000 combined the three to one standard.
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ISO 9000: 2008 latest with technical committee
Similar certifications es
ANSI – American National Standard Institute
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EC – European Community
ASQ 9000 – American Society for Quality
DOD – Department of Defence
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FDA – Food and Drug Administration

ISI – Indian Standards Institute
BIS Hallmark – Bureau of Indian Standards
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Basic Requirements of ISO 9001

1. Procedure to cover all processes in the business
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2. Monitoring process to ensure effectiveness

3. Keeping adequate record
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4. Defect verification and appropriate correction

5. Regular review of individual processes
6. Facilitating continual improvement
Benefits of ISO Registration

1. Increase in internal quality – reduction of scrap, rework etc
2. Production reliability – measure of breakdowns, time and shift management etc
3. External quality – acceptance by customers, less claims, return of goods
4. Time performance – marketing, delivery, production time etc
5. Cost of poor quality – scraps and rework
ISO 9000 Family

ISO 9000:2000 QMS – Fundamental and Vocabulary
- Basic QMS
- Guidance document for certification
- Revised in ISO 9000:2005
ISO 9001:2000 QMS – Requirements
- Design, development and installation
- Customer satisfaction through products and service
ISO 9004:2000 QMS – Guidelines for Performance
- Continuous improvement
- Enhance the mature system
Sector Specific Standards

Need – One system may not cover all industry
Sector specific standard work in hand with regular ISO
Work in tandem with certifying bodies of such industry
AS91000
1997 for Aerospace industry. Boeing was the brain behind it.
NASA, DOD, FAA
Common in USA, Europe and Japan
ISO/TS 16949 – March 2002 – Technical Specification

System for Automotive Suppliers
In collaboration with US big 3 – Ford, GM, Chrysler with German, French, Italy and Japan
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Accepted by Asian automakers – they benefit a lot.
Helps in Continuous improvement, defect prevention, variation reduction and supply chain
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Levels – ISO 9000, sector specific and company requirement
TL 9000 - 1998 es
QuEST – Quality Excellence for Supplies of Telecommunications formed TL9000
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Standards designed by Motorola, Lucent, Verizon, Southwest bell, AT&T.
Along with ISO 9001 they have their own standard to deliver the need of customers
Five Layers
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ISO 9001 Requirement

Common TL9000 Requirement QSR – Quality Standard Requirement
HW Specific SW Specific Service Specific
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Common TL9000 Measurement QSM – Quality Standard Measurement

HW Specific SW Specific Service Specific
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ISO/TS 29001:2007
Petroleum, Petro chemical and Natural gas
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QMS for the above
ISO 14001:2004
Environment Management System – EMS
Focus of Pollution, emission, recycling etc
ISO IEC 9003:2004 – International Electrotechnical Commission

Software products and related service
AS9100 Aerospace industry
ISO/TS 16949 Technical Specification for Automotive Suppliers
TL 9000 – 1998 Telecommunications
ISO/TS 29001:2007 Petroleum, Petro chemical and Natural gas
ISO 14001:2004 Environment Management System – EMS
ISO IEC 9003:2004 Electrotechnical Software products
Implementation of QMS
2. Top management commitment – flow of action starts from the top
3. Appointment of management representative – qualified, trained, eager, participative
4. Awareness – to all employees in the organisation
5. Implementation team – constitute a council from all departments
6. Training – when new things are implemented then training is must
7. Time schedule – process time, change time, implementation, parallel process
8. Review present system – how the new is different and better from current
9. Write documents – step by step process
10. Install new system – implementation, change and acceptance take time
11. Internal audit – inspection, check and review
12. Management review – report to the top management
13. Registration – apply for registration
Documentation
1. Policy
2. Procedure
3. Work instructions
4. Records
5. Document Development
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Internal Audits
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Objectives – determine actual performance, initiate corrective action, follow up, provide continuous
improvement through feedback,
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Auditor – trained profs, ASQ updates training, written and oral comm., honesty, unbiased etc
Techniques – Examine, Observe and interviews.
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Procedure – check list, documentation procedure, priority list etc
Registration – Selecting a Registrar - ASQ member, Registrar Accreditation Board RAB.

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1. Qualification and Experience – Track record, client list, industry specific

2. Certificate of Recognition – authenticity of the registrar, reference, customer check
3. Registration process – structured process, help quality and productivity, efficiency
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4. Time and cost constraints – period of the process, additional fees etc
5. Auditor qualifications – know the industry standard, types of process, knowledge. Interest etc
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Registration process
Application for Registration – Basic process with the authorised registrar. With initial supporting
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docs, fees, time frame etc. Mutuality

Document Review – Scrutiny of docs and QMS, compare with latest ISO standards
Preassessment – overview of docs with the process, identify major flaws
Assessment – Actual doing, certifies audit is compared with internal audit. Less scope for variation
Registration – verbal summary, audit findings, minor non compliances and feedbacks are recorded.
Follow up of surveillance – periodicity of future visit. Random checks, registration valid for 3 years
ISO 14000
The success of ISO 9000 series made the ISO think further and concentrate more on environmental
issues which is a threat to basic living of mankind.
1991 – Formed SAGE – Strategic Advisory Group on the Environment it lead to
1992 – TC207 a Technical Committee
Two different set of standards where formed

Organisational Evaluation Standard Product Evaluation Standard
Environmental Management System – EMS Environmental Aspects in Product Standards – EAPS
14001 – Formal Basic document Guide 64 – consequences, criteria, elements of standards

14004 – Guidelines, Techniques
Environmental Auditing – EA Environment Labelling – EL
14010 – Info of internal and external audit 14020 – Basic principles, goals, benefits
14011 – Audit plan, procedure, implements, reports 14021 – Self declaration, accurate, verifiable
14012 – auditor qualification, training, skills 14022 – Basic symbols for use
14023 – Test and verification. Genuineness
14024 – Multiple criteria, third party labelling etc
Environmental Performance Evaluation – EPE Life Cycle Assessment – LCA
14031 – guidelines, track performance, records, 14040 – Principles, framework. Long range effect
monitoring and measuring 14041 – Definition and scope, preparation guidelines
14042 – Impact assessment, significance of results
14043 – Improvement Assessment. Perfect system
Concept of ISO 14001
Environmental
Policy
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Periodic
Management
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Review
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Continuous
process
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Check and correct Implementation

Action and Operation
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Key words
Environment – Surrounding not just local but global. As air, water, land and natural resources are
universal.
Environment Aspects – In terms of organisations activities by its products, process and service.
Discharge waste management, emission, energy conservation
Environment impact – How the above impacts the environment
Environmental objective – overall policy of the organisation and their plans for protection
Environmental target – Set goals towards protecting the environment
Requirement of ISO 14001
General Requirement – EMS policy and activities

Environment Policy - Top management commitment and direction
- Current activities and future plans
- Policy must be made public
Planning - Environmental Aspects
- Legal and other Requirements
- Objectives and targets
- Environment Management Program
Implementation - Structure and responsibility
and operation - Training, awareness, competency
- Communication
- EMS Documentation
- Document control
- Operational Control
- Emergency preparedness and response
Checking and - Monitoring and measuring
Corrective action - Corrective and preventive action
- Records
- EMS Audit
Management Review - Review objective and targets
- Review performance against legal requirement
Benefits of EMS
Global – trade and barrier removal, improve ems, earth a safe place to live.
Organisational – customers are aware, good image, reduce env hazards, energy conservation
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Health and safety – employees knows ems is good for him, ems leads to safety security and longevity
Not just employees but the society as a whole.
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Quality is not an act. It is a habit Aristotle 384BC-322BC, Greek philosopher
Quality is doing the things right every time
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Quality and education a never ending process
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es
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EINSTEIN

Einstein College of Engineering

 This note will just cover the overview of various topics

Einstein College of Engineering

Total – Whole, entire, complete Quality – Excellence, class, meeting expectation

wastage and scrap etc.

Barriers in TQM Implementation

2. Lack of employee involvement – particularly at managerial level, supportive attitude, trust

5. Lack of attention to feedback and complaints –

Historical Review of TQM

Demings 14 Points Summarised

1. Create constancy of purpose and continual improvement

Quality = performance / expectation

Requirement – need or expectation

Einstein College of Engineering

Quality Costs – Quality leads to profit, more quality more profit.

Analysis technique for Quality Cost

Steps to identify the important causes using Pareto analysis

Einstein College of Engineering

Who is the customer

1. External customer – user of product or service, buyer and influencer

Basic Requirement of Internal and External Customers

1. High level of quality – meeting all his needs

3. High levels of service – maximum service

6. Little of no variability – minimum deviation from the target and expectation

Customer perception of quality

Before 1988 – Performance, Prize and service

Einstein College of Engineering

3. Categories the complaints – product, service, cost, ambience etc

5. Communicate the process of handling the complaints to all staffs

- Customer must refer more customers and increase the revenue

Kaizen is defined as making ―continuous improvement‖ - slow, incremental but constant.

PDCA Cycle – PLAN > DO > CHECK > ACT

 Implement the change you decided on in the plan phase.

time, you must determine how well it is working.

measures with which you can monitor the level of improvement.

Key Elements in Partnering

3. Indicates process gains and losses

6. Helps to decide the overall performance

Typical Measurements – What should be measured

2. Customer – complaints, delivery, warranty, replacement

Criteria – How to set measurements

Einstein College of Engineering

Statistics is a mathematical science pertaining to the collection, analysis, interpretation or explanation,

Seven tools of Quality

A picture of the steps the process undergoes to complete it's task.

Einstein College of Engineering

The first is to establish a purpose for collecting this data.

Measure of Central Tendency and Dispersion

Measure Central Tendency

Einstein College of Engineering

Population and Sample

defines the population, including a description of the members to be included.

The p-chart: Control chart for fraction nonconforming

The c-chart: Control chart for number of nonconformities observed

For a constant sample size

xi where u : average nonconformities per unit

Seven New Management and Planning Tools

and promotion were.

Einstein College of Engineering

measurements. Six differently shaped matrices are possible: L, T, Y, X, C and

used to highlight risks and identify possible countermeasures (often shown as

DMAIC - The basic methodology consists of the following five steps: