Women Empowerment PDF

10/21/2011
M.B.A. I Year – 2011‐12
Total Quality Management
Unit I
Prepared By S.Nagarajan / Professor / MBA
1
/ Sudharsan Engineering College
Internal Assessment Scoring Pattern
Marks
Assignments 2 5
U it T t
Unit Tests 5 5
Cycle Test I & II + 5
Model Exam
Attendance 5
Prepared By S.Nagarajan / Professor / MBS
2
1
10/21/2011
In percentage Marks
Assignments 50‐59 1
60‐69 2
70‐79 3
80‐89 4
90‐100 5
U it T t
Unit Test 50 59
50‐59 1
60‐69 2
70‐79 3
80‐89 4
90‐100 5
Cycle Tests & Model Exam 50‐59 1
60‐69 2
70‐79 3
80 89
80‐89 4
90‐100 5
Attendants 75‐80 1
81‐85 2
86‐90 3
91‐95 4
96‐100 5
3
BA9103 TOTAL QUALITY MANAGEMENT LT P C 3003
Syllabus- Unit I
UNIT I INTRODUCTION TO QUALITY MANAGEMENT 9
a. Definitions
b. TOM framework, benefits, awareness and obstacles.
c. Quality – vision, mission and policy statements.
d. Customer Focus – customer perception of quality, Translating needs into
requirements, customer retention.
e. Dimensions of product and service quality. Cost of quality.
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UNIT I INTRODUCTION
Unit I
Subject No of
Hrs.,
1
Definitions
1
TQM framework, benefits, awareness and
obstacles
1
Quality – vision, mission and policy statements
1
Customer Focus – customer perception of
quality
1
Translating needs into requirements
1
Customer retention
1
Dimensions of product and service quality
1
Cost of quality.
1
Review & Test
5
REFERENCE
1 Total Quality management – V.Jayakumar & Dr.R.Raju- Lakshmi
Publications – Chennai
TEXT BOOKS
1. Dale H.Besterfield et al, Total Quality Management, Third edition,
Pearson Education (First Indian Reprints 2004).
2
2. Shridhara Bhat K,
K Total Quality Management – Text and Cases,Cases
Himalaya Publishing House, First Edition 2002.
REFERENCES
1. Douglas C. Montgomory, Introduction to Statistical Quality Control, Wiley
Student Edition, 4th Edition, Wiley India Pvt Limited, 2008.
2. James R. Evans and William M. Lindsay, The Management and Control
of Quality, Sixth Edition, Thomson, 2005.
3. Poornima M.Charantimath, Total Quality Management, Pearson
Education, First Indian Reprint
p 2003.
4. Indian standard – quality management systems – Guidelines for
performance improvement (Fifth Revision), Bureau of Indian
standards, New Delhi.
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1. Define Total Quality?
1. TQM is an enhancement to the traditional way of doing business. It is the

art of managing the whole to achieve excellence.
2 It is defined both a philosophy and a set of guiding principles that

2.
represent the foundation of a continuously improving organization.
3. It is the application of quantitative methods and human resources to

improve all the processes within an organization and exceed customer
needs now and in the future.
4. It integrates fundamental management techniques, existing improvement

efforts, and technical tools under a disciplined approach.
7
Definitions:‐‐‐
Quality is the totality of characteristics of an entity
that bear on its ability to satisfy stated and
that bear on its ability to satisfy stated and
implied needs. (ISO)
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Benefits due to introduction of TQM

Tangible Benefits Intangible Benefits
Improved product quality Improved employee participation
Improved productivity
Improved productivity Improved teamwork
Improved teamwork
Reduced quality costs Improved working relationship
Increased market and customer Improved customer satisfaction
Increased Profitability Improved communication
Reduced employee grievances
educed e p oyee g e a ces Enhancement of job interest
a ce e t o job te est
Enhancement of problem‐ solving capacity
Better company image
9
Give the Obstacles associated with TQM Implementation?

1. Lack of management commitment
2. Lack of faith.
3. Inability to change organizational culture
4 Misunderstanding
4. Mi d t di about b t conceptst off TQM
5. Improper planning
6. Lack of employee commitment.
7. Lack of effective communication.
8. Lack of interest and incompetent leaders.
9. Non application of proper tools and techniques.
10. Lack of continuous training and education
11. Inadequate use of empowerment and team work.
12 Incompatible organizational structure and isolated individuals and departments
12.
13. Ineffective measurement techniques and lack of access to data and results.
14. Paying inadequate attention to internal and external customers.
15. Delay or non-implementation of quality improvement team’s recommendations.
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The Eight Elements Of TQM- Frame Work
Total Quality Management is a management approach that originated in the 1950's

and has steadily become more popular since the early 1980's.
Total Quality is a description of the culture, attitude and organization of a company
that strives to provide customers with products and services that satisfy their needs.
The culture requires quality in all aspects of the company's operations, with
processes being done right the first time and defects and waste eradicated from
operations.
To be successful implementing TQM, an organization must concentrate on the eight
key
elements:
1. Ethics
2. Integrity
3. Trust
4 Training
4.
5. Teamwork
6. Leadership
7. Recognition
8. Communication
11
The above elements can be divided into four groups according to their
function. The groups are:
I. Foundation - It includes: Ethics, Integrity and Trust.
II. Building Bricks - It includes: Training, Teamwork and

Leadership.
III. Binding Mortar - It includes: Communication.
IV. Roof - It includes: Recognition.
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Give the Basic Concepts of TQM?

• A committed and involved management to provide long-term top-to-bottom
organizational
g support.
pp
• An unwavering focuses on the customer, both internally and externally.
• Effective involvement and utilization of the entire work force.
• Continuous improvement of the business and production process.
• Treating suppliers as partners.
• Establish performance measures for the processes.
13
What are the various quality statements?
1. Vision Statement
2. Mission Statement
3. Quality Policy Statement
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What is a vision statement?

The vision statement is a declaration of what an organization should look
like five to ten years in a future.
What is a mission statement?
The mission statement answers the following questions: who we are,
who are the customers, what we do, and how we do it.
What is a quality policy?

The Quality Policy is a guide for everyone in the organization as to how
they should provide products and service to the customers. The common
characteristics are
• Quality is first among equals.
• Meet the needs of the internal and external customers
customers.
• Equal or exceed the competition.
• Continually improve the quality.
• Include business and production practices.
• Utilize the entire work force.
15
TQM-Frame Work
16
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TQM-Frame Work
17
Customer Focus (satisfaction) –
I. Customer Perception of Quality

p
II. Customer Complaints
III. Service Quality
IV. Customer Retention
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II. Customer Complaints
IV Customer Retention
IV.
1) Performance
2) Features
3) Conformance
4) Aesthetics
5) Reliability
6) Durability
7)) Serviceabilityy
8) Warranty
9) Reputation
10)Perceived Quality
Reference 1 Page 3.3
19
Performance
Performance involves “fitness for use”. It indicates that the product
and service is ready for the customer’s use at the time of sale.
Availability
Reliability
Maintainability
Features
Features are secondary characteristics of the product or serive.
For example, the primary function of a cell phone is for
communication, where as other facilities such as calculator and alarm
are features of the cell phone.
Service
Customer service is intangible in nature. Intangible characteristics are
those traits that are not quantifiable, but contributes greatly to
customer satisfaction.
Organizations objective is to provide good quality of the product to the
customer at the right time, even the customers are not complaining
about their service. Reference 1 Page 3.3
20
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Warranty
The product warranty represents as organizations public promise of a quality
product. In other words it represents as public commitment to guarantee a
level of service sufficient to satisfy the customer.
Price
Customers are willing to pay higher price to obtain value. Also customers
expect high quality products at the lower price
price.
Customers preferring the organizations who are providing the greatest value
their money.
Reputation
It I obvious that customers are willing to buy product or service from a known
trusted and reputed organization. The total customer satisfaction is based on
not only with the product, the entire experience with the organization.
Thus reputation of a firm brings the market to them. So organization should

strive customers fro life.
21
What is Perceived Quality?

Perceived quality can be defined as the customer's perception of the overall
quality or superiority of a product or service with respect to its intended
purpose, relative to alternatives. Perceived quality is, first, a perception by
customers It thus differs from several related concepts
customers. concepts, such as:
a) Actual or objective quality: the extent to which the product or service

delivers superior service
b) Product-based quality: the nature and quantity of ingredients, features,

or services included
c)) Manufacturing
gqquality:
y conformance to specification,
p , the "zero defect"
goal
22
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Concepts of the TQM Philosophy
Prepared By S.Nagarajan / Professor / MBS 23

p
y
II. Customer Complaints (Customer feedback)
24
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Customer Complaint (Customer Feed Back) is necessary because:

To discover customer dissatisfaction.
To identify customer’s needs
To discover relative priorities of quality
To compare performance with the competition and
To determine opportunities, for improvement.
Tools used for collecting customer complaints are:

Comment card
Customer questioner
Focus group
T lF
Tool-Free telephone
t l h numbers
b
Customer visits
Report card
Internet and computer
Employee feedback
25

p
y
26
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What are the Dimensions of product and service Quality?

• Features
• Conformance
• Reliability
• Durability
• Service
• Response
• Aesthetics
• Reputation
27
Dimensions of Service Quality

 RELIABILITY: consistency, error‐free dependability
 RESPONSIVENESS: willingness to help the customer
 TANGIBLES: environment for the service presented
environment for the service presented
 COMPETENCE: the right skills and knowledge required
 COURTESY: supplier’s behavior

 SECURITY: freedom from danger
g or risk
 ACCESS: ease of making contact
 COMMUNICATION: understandable to the customer
 EMPATHY: adopting the customer’s viewpoint
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Give the Objectives of TQM?
To develop a conceptual understanding of the basic principles and methods

associated with
ith TQM;
TQM
• To develop an understanding of how these principles and methods have
been put into effect in a variety of organizations;
• To develop an understanding of the relationship between TQM principles and
the theories and models studied in traditional management;
• To do the right things, right the first time, every time.
29

1) Is the process of retaining existing customers.

2) Customer retention is more powerful than customer satisfaction.
3) Ensure that customer is not only satisfied but also retained.
4) Over 60% of organizations future earnings come from existing customers.
5) A 2% increase in customer retention has an equivalent impact upon profitability
as a 10% reduction in operating cost.
6) Up to 96 % of unhappy customers do not complain. But they are three times
more likely to communicate a bad experience to other customers.
7) 91% of unhappy customers will not buy from you.
8) It costs 5 times to get a new customer as it costs to keep a old one.
30
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Quality Cost / Cost of Quality
Quality related costs are costs incurred by an organization to ensure that the
product / service it provide confirm to customer requirements.
The cost off doing

g things
g wrong
g.
Define Quality Costs?
Quality Costs are defined as those costs associated with the no achievement of
product or service quality as defined by the requirements established by the
organization and its contracts with customers and society.
31
Give the Analysis Techniques for Quality Costs?

i. Trend Analysis
ii. Pareto Analysis
Give the primary categories of Quality cost?

• Preventive cost category
• Appraisal cost category
• Internal failure cost category
• External failure cost category
Give the typical cost bases?

• Labor
• Production
• Unit
• Sales
32
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How will you determine the optimum cost?

• Make comparison with other organizations
• Optimize the individual categories
• Analyze the relationships among the cost categories
State
St t the
th Quality
Q lit IImprovementt St Strategy?
t ?
• Reduce failure costs by problem solving
• Invest in the “right” prevention activities
• Reduce appraisal costs where appropriate and in a statistically sound
manner
• Continuously evaluate and redirect the prevention effort to gain further
quality
improvement.
33
Quality Costs—general description
1. Appraisal Costs
2. Prevention Costs
3. Failure Costs
Internal Failure Costs
External Failure Costs
34
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Prevention Costs.
The costs of all activities specifically designed to prevent poor quality in
products or services.
Examples are the costs of:
•New product review
•Quality planning
•Supplier capability surveys
•Process capability evaluations
•Quality improvement team meetings
•Quality improvement projects
•Quality
Quality education and training
35
Failure Costs
The costs resulting from products or services not conforming to requirements or
customer/user needs. Failure costs are divided into internal and external failure
categories.
Internal Failure Costs
Failure costs occurring prior to delivery or shipment of the product, or the
furnishing of a service, to the customer.
E
Examplesl are ththe costs
t of:f
Scrap
Rework
Re-inspection
Re-testing
Material review
Downgrading
External Failure Costs
Failure costs occurring after delivery or shipment of the product — and during or
after furnishing of a service — to the customer.
Examples are the costs of:
Processing customer complaints
Customer returns
Warranty claims
Product recalls
36
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Appraisal Costs
The costs associated with measuring, evaluating or auditing products or

services to assure conformance to quality standards and performance
requirements.
Th
These include
i l d ththe costs
t of:
f
Incoming and source inspection/test of purchased material
In-process and final inspection/test
Product, process or service audits
Calibration of measuring and test equipment
Associated supplies and materials
37
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Best practices for service delivery: Translating customer needs into

network services
• Translating customer needs into network services is part art and part science.
• Best practices have emerged around identifying customer needs by
developing a checklist to help you define a customer's business requirements,
then translate them into technical requirements and technology solutions.
Aft that,
After th t you needd a project
j t plan
l designed
d i d tto h
help
l you d
drive
i projects
j t tto
completion.
• Finally, understanding the essential steps of a successful implementation
process will keep projects on track and on budget.
• Business requirements drive technology initiatives.
• Gathering requirements is an intensive process. In general there are three
key areas of requirements that need to be addressed. The areas are:
1. Business requirements
q
2. Technology and technical requirements
3. Integration requirements
39
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10/21/2011

Internal Assessment Scoring Pattern

BA9103 TOTAL QUALITY MANAGEMENT LT P C 3003

UNIT I INTRODUCTION TO QUALITY MANAGEMENT 9

1. Define Total Quality?

1. TQM is an enhancement to the traditional way of doing business. It is the

2 It is defined both a philosophy and a set of guiding principles that

3. It is the application of quantitative methods and human resources to

4. It integrates fundamental management techniques, existing improvement

Benefits due to introduction of TQM

Give the Obstacles associated with TQM Implementation?

The Eight Elements Of TQM- Frame Work

Total Quality Management is a management approach that originated in the 1950's

I. Foundation - It includes: Ethics, Integrity and Trust.

II. Building Bricks - It includes: Training, Teamwork and

III. Binding Mortar - It includes: Communication.

IV. Roof - It includes: Recognition.

Give the Basic Concepts of TQM?

• An unwavering focuses on the customer, both internally and externally.

• Effective involvement and utilization of the entire work force.

• Continuous improvement of the business and production process.

• Treating suppliers as partners.

• Establish performance measures for the processes.

What are the various quality statements?

What is a vision statement?

What is a quality policy?

Customer Focus (satisfaction) –

I. Customer Perception of Quality

Customer Focus (satisfaction) –

I. Customer Perception of Quality

Thus reputation of a firm brings the market to them. So organization should

Reference 1 Page 3.3

What is Perceived Quality?

a) Actual or objective quality: the extent to which the product or service

b) Product-based quality: the nature and quantity of ingredients, features,

Concepts of the TQM Philosophy

Customer Focus (satisfaction) –

Reference 1 Page 3.4

Customer Complaint (Customer Feed Back) is necessary because:

Tools used for collecting customer complaints are:

Customer Focus (satisfaction) –

Reference 1 Page 3.4

What are the Dimensions of product and service Quality?

Dimensions of Service Quality

 COURTESY: supplier’s behavior

Give the Objectives of TQM?

To develop a conceptual understanding of the basic principles and methods

Customer Focus (satisfaction) –

1) Is the process of retaining existing customers.

The cost off doing

Define Quality Costs?

Give the Analysis Techniques for Quality Costs?

Give the primary categories of Quality cost?

Give the typical cost bases?

How will you determine the optimum cost?

Quality Costs—general description

The costs associated with measuring, evaluating or auditing products or

Best practices for service delivery: Translating customer needs into

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