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Unit-5

What do you mean by quality?

• Quality is level of fitness in product/service to be
used –JURAN
• Quality is conformance to specification and
promises -CROSBY
• On comparative basis people see quality in the
product which perform better or offer more
features.
• Making product right in the first time also
indicate quality from manufacturing point of
view.

Criteria used by people to define

quality
• Performance
• Features
• Reliability
• Durability
• Value
• Design
• Brand Image

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Implications of Quality
(Why Quality is important in business?)
• Quality affect Company’s reputation
– Any New Product get advantage due to image of
company
• Focus on quality improve product reliability
– Reduce risk of performance failure
• Quality improve firm’s ability to compete
• Productive employees stay long in an
organization that consider quality at priority.

Evolution of TQM

TQM: Total Quality Management

• TQM is defined as “ managing the entire
organization so that it excels on all dimensions of
product and services that are important to the
customer”
• It has two operational goals:
– Careful design of the product or services
– Ensuring that the organization’s systems can
consistently produce as per design
• To achieve above goals, entire organization has
to oriented towards these goals hence term
“TOTAL” is used.

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Principles of TQM

Customer satisfaction:
• Quality must aim at to prevent customer dissatisfaction and also to
meet customer’s expectations.
Employee Involvement:
• Related to quality at source
• Employee engagement in finding quality improvement areas
• Special purpose teams to address quality issues

Continuous improvements :
• Continuous improvement in quality is a never ending process. The
management should focus on identifying and eliminating causes of
poor quality. Quality should be made the responsibility of everyone in
the organization

Approaches to TQM
• Organisations adopt different approaches to achieve
excellence in TQM has different approaches towards
its achievement.

Approaches used for TQM

Deming
Deming’s 14 Juran’s
Wheel : PDCA KAIZEN Six Sigma
Principles Philosophy
Cycle

Quality Circle 7 QC TOOLS

Deming Wheel: PDCA Cycle

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Deming Wheel: PDCA Cycle

Quality Circle

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Quality Circle

7 QC Tools

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Seven Tools of Quality Control

(7QC tools)
1. Cause-and-Effect Diagrams
2. Flowcharts
3. Checklists
4. Control Charts
5. Scatter Diagrams
6. Pareto Analysis
7. Histograms

1. Pareto Charts - Pareto charts help prioritize by arranging them in decreasing order
of importance. In an environment of limited resources these diagrams help
companies to decide on the order in which they should address problems. The
Pareto analysis can be used to identify the problem in a number of forms.
(a) Analysis of losses by material (number or past number).
(b) Analysis of losses by process i.e., classification of defects or lot rejections in
terms of the process.
(c) Analysis of losses by product family.
(d) Analysis by supplier across the entire spectrum of purchases.
(e) Analysis by cost of the parts.
(f) Analysis by failure mode.
Example: The Figure below shows a Pareto chart of reasons for poor quality. Poor
design will be the major reason, as indicated by 64%. Thus, this is the problem
that the manufacturing unit should address first.
A — Poor Design B — Defective Parts C — Operator Error D — Wrong Dimensions E
— Surface Abrasion F — Machine Calibrations G — Defective Material

Figure – Pareto Chart

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2. Check Sheets - Check sheets facilitate systematic record keeping or data

collection observations are recorded as they happen which reveals patterns or
trends. Data collection through the use of a checklist is often the first step in
analysis of quality problem. A checklist is a form used to record the frequency
of occurrence of certain product or service characteristics related to quality.
The characteristics may be measurable on a continuous scale such as weight,
diameter, time or length.
• Example: The table is a check sheet for an organization’s computer related
problems.

Figure – Checklist

3. Cause And Effect Diagram - It is sometimes called as Fish-bone diagram. It is

first developed by K. Ishikawa in 1943 and is sometimes called as Ishikawa
diagram. The diameter helps the management trace customer complaints
directly to the operations involved. The main quality problem is referred to
Fish-head; the major categories of potential cause structural bones and the
likely specific causes to ribs. It explores possible causes of problems, with the
intention being to discover the root causes. This diagram helps identify
possible reasons for a process to go out of control as well as possible effects on
the process.

4. Scatter Diagram (Scatter Plots) - It often indicates the relationship between

two variables. They are often used as follow-ups to a cause and effect analysis
to determine whether a stated cause truly does impact the quality
characteristics.
• Figure – Scatter Diagram

• Example: The above figure plots advertising expenditure against company sales
and indicates a strong positive relationship between the two variables. As the
level of advertising expenditure increases sales tend to increase.

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• 5. Histogram (Or) Bar Charts - It displays the large amounts of data that are
difficult to interpret in their raw form. A histogram summarizes data measured
on a continuous scale showing the frequency distribution of some quality
characteristics (in statistical terms the central tendency and the dispersion of
the data).
• Figure- Histogram
• Often the mean of the data is indicated on the histogram. A bar chart is a
series of bars representing the frequency of occurrence of data characteristics,
the bar height indicates the number of times a particular quality characteristic
was observed.

• 6. Flow Charts (Or) Graphs - It shows the sequence of events in a process.

They are used for manufacturing and service operations. Flow charts are often
used to diagram operational procedures to simplify the system. They can
identify bottlenecks, redundant steps and non-value added activities. A
realistic flow chart can be constructed by using the knowledge of the person
who are directly involved in the particular process. The flow chart can be
identifies where delays can occur.
• Figure – Flowchart

7. Control Charts - It distinguish special causes of variations from common causes

of variation. They are used to monitor and control process on an ongoing basis.
A typical control chart plots a selected quality characteristic found from sub-
group of observations as a function of sample number. Characteristics such as
sample average, sample range and sample proportion of non-conforming units
are plotted. The centre line on a control chart represents the average value of
characteristics being plotted. Two limits know as the upper control limit (UCL)
and lower control limit (LCL) are also shown on control charts. These limits are
constructed so that if the process is operating under a stable system of chance
causes, the problem of an observation falling outside these limits is quite
small. Figure below shows a generalized representation of a control chart.

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SIX SIGMA
Customer Loyalty has been driven by Quality

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Six Sigma Key points

• Six sigma is a systematic and disciplined
process that focuses on process
improvement
• Goal of six sigma is to reduce number of
defects in any process to 3.4 defects per
million opportunities by working on Improvement
processes that lead to variation
• Involve use of statistical, non-statistical,
project management skills, and six sigma
methodology (DIMAC)

Six Sigma
Six sigma

Four sigma

Two sigma

Lower Upper
specification specification

Mean

Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall.

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DEMING’S 14 POINTS

Deming’s 14 Principles

Point 1: Create a Vision and Demonstrate

Commitment
• An organization must define its values,
mission, and vision of the future to provide
long-term direction for its management and
employees.
• Businesses should not exist simply for profit;
they are social entities whose basic purpose is
to serve their customers and employees.

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Point 2: Learn the New Philosophy

• Companies must take a customer-driven

approach based on mutual cooperation
between labor and management and a never-
ending cycle of improvement.

Point 3: Understand Inspection

• Inspection - the principal means of quality control.
• Routine inspection acknowledges that defects are
present, but does not add value to the product.
• Inspection should be used as an information-
gathering tool for improvement, not as a means of
“assuring” quality or blaming workers.

Point 4: Stop Making Decisions Purely on the

Basis of Cost
• Price has no meaning without quality being
purchased so do not make cost the sole
decision factor.
• The aim is to minimize total cost, not merely
initial cost, by minimizing variation.
• This may be achieved by moving toward a
single supplier for any one item, on a long
term relationship of loyalty and trust.

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Point 5: Improve Constantly and Forever

• Improved design of goods and services comes

from understanding customer needs and
continual market surveys and other sources of
feedback.
• Improvements in operations are achieved by
reducing the causes and impacts of variation,
and engaging all employees to innovate.
• Focus on continuous improvement

Point 6: Institute Training

• Training
- results in improvements in quality and
productivity
- adds to worker morale
- demonstrates to workers that the company is
dedicated to helping them and investing in the
future

Point 7: Institute Leadership

• The job of management is leadership, not
supervision.
• Supervision – simply overseeing and directing
work
• Leadership – providing guidance to help
employees do their hobs with less effort.

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Point 8: Drive Out Fear

• Fear is manifested in many ways:
– fear of punishment,
– fear of failure,
– fear of the unknown,
– fear of give up, and
– fear of change
• Fear encourages short-term thinking
• Fear is a cultural issue for all organizations

Point 9: Optimize the Efforts of Teams

Break down barriers
• Teamwork helps to break down barriers between
departments and individuals.

Barriers between functional areas occur occurs when

managers fear they might lose power.

• Lack of cooperation leads to poor quality.

Point 10: Eliminate Exhortations

• Motivational approaches overlook the major

source of many problems – the system
• Causes of variation stemming from the design
of the system are management’s problem, not
the workers’

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Point 11: Eliminate arbitrary numerical targets

• Eliminate management by numbers, Numerical
goals. Substitute aids and helpful leadership in order
to achieve continual improvement of quality and
productivity.
• Replace management by numbers with Never-Ending
Improvement
– Identify process improvements
– Management should provides a roadmap for never-ending
improvement

Point 12: Remove Barriers to Pride in

Workmanship
• Deming believed that one of the biggest barriers to
pride in workmanship is performance appraisal.
• Performance appraisal destroys teamwork by
promoting competition for limited resources, fosters
mediocrity
– because objectives typically are driven by numbers and
what the boss wants rather than by quality, focuses on the
short term and
– discourages risk taking, and confounds the “people
resources” with other resources.

Point 13: Encourage Education and Self-

Improvement
• Institute a vigorous program of education and self-
improvement, because
– What an organization needs is not just good people; it needs people
that are improving with education.
• Educating and retraining everyone:
– Should develop employees for changes in their current jobs
– In the organization’s mission and goals
– Statistical training
– View training as long term for the individual
– In fields related to the employees current job
– The employees personal improvement
– Failure to do this creates loss of resources in the future

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Point 14: Take Action

Top management commitment to action
• Any culture change begins with top management
• Put everybody in the company to work to accomplish
the transformation. The transformation is
everybody‘s job.
• Team-based approach

KAIZEN

If you learn only one word of

Japanese, make it KAIZEN
-Masaaki Imai

Developer of KAIZEN : Masaaki Imai

• Kaizen originated in 1950 in
Japan
• Masaaki Imai introduced and
applied it in 1986 to improve
efficiency, productivity and
competitiveness in Toyota

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KAIZEN TOOLS
3M 5S
• MURA • Sort
• MURI • Set in Order
• MUDA • Shine
• Standardized
• Sustain

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KAIZEN: 3 Types of waste

KAIZEN : Focuses to reduced seven

types of waste found as MUDA

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What is 5S

5S for continuous improvement

1st S = Seiri means SORT

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Seiri =Sort

2nd S = Seiton means Set in Order

3rd S = Seiso means Shine

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4th S = Seiketsu means Standardize

Why Standardize?

5th S= Shitsuke means Sustain

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