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    TQM Mod1

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    Ayush Kothari

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    AS PER NEW VTU CBCS SYLLABUS CONTENTS MODULE- 1 PRINCIPLES AND PRACTICE 1-24 41.1 Introduction 1 1.1.1 Definition-Total Quality Management 1 1.2 Basic Approach 2 1.3 Contribution of Quality Gurus 3 1.4 Framework of TQM 8 1.5 Awareness 9 1.6 Definition of Quality 9 1.7 Evolution of Quality Management "1 1.7.1 Implementation of TQM 12 1.8 Obstacles 14 1.9 Benefits of TOM 15 1.10 Advantages of TQM 16 1.11 International organization for Standardization (Iso) 7 1.11.1 Benefits of ISO registration 7 1.11.2 ISO series of standards 18 1.12 ISO 9001 Requirements 18 1.12.1 Implementation of ISO 19 1.12.2 Documentation procedure 20 1.12.3 Internal Audit 22 1.12.4 Registration 22 Review Questions 24 MODULE -2 LEADERSHIP 25 - 44 2. Definition 25 2.2 Characteristics of Quality Leaders ae 2.3 Concept 26 2.4 Principles of Leadership ar 2.5 Leadership Functions e 2.5.1 Characteristics of effective people . 2.5.2 Ethics : - 2.5.3 The root causes of unethical behaviour 31 2.5.4 Ethics management program 31 2.5.5 Need for Business Ethics A 2.6 The Deming Philosophy 2 27 Role of Leaders in TQM 34 2.8 TQM implementation 35 2.9 Core values, concepts and framework. 36 2.9.1 Framework for MBNQA 37 2.9.2 Core values and concepts 38 2.10 Quality Statements 39 2.10.1 Mission statement 40 2.11 Strategic planning at 2.12 Communication 42 2.13 Decision making “4 Review Questions % MODULE - 3 CUSTOMER SATISFACTION & INVOLVEMENT 4S - 84 3.1 Introduction 45 3.2 Customer a 3.2.4 Internal Customers 46 3.2.2 External Customers 2 3.3 Customer Satisfaction Model o 3.4 Customer Perception of Quality ar 3.4.1 Factors influencing customer perception of quality 48 3.5 Customer Feedback 48 3.5.1 Purpose of Feedback 48 3.5.2 Tools for Listening to the voice of the customer 49 3.6 Using Customer Complaints 51 3.8.1 Steps to Solve Customer Complaints 51 3.7 Service Quality 52 3.7.4 Service quality dimensions 52 : cee the Customer Needs into Requirements 53 a id ‘omer Retention - A Strategic Process to Retain Existing Customers 56 c embloyes involvement -Introduction a ; mployee Motivation 57 3.11.4 Importance of Motivation Gr 3.11.2 Motivation is important both to an individual and a business 58 E , : Hg Theories of Motivation ps eke oye Surveys g2 ' efinition of Employee Empowerment 63 : VI a. 2.6 The Deming Philosophy a 2.7 Role of Leaders in TOM u 2.8 TOM implementation cd 2.9 Core values, concepts and framework 8 2.9.1 Framework for MBNOA a 2.9.2 Core values and concepts 8 2.10 Quality Statements ° 2.10.1 Mission statement “0 2.11 Strategic planning “ 2.12 Communication a 2.13 Decision making “4 Review Questions ~ MODULE - 3 CUSTOMER SATISFACTION & INVOLVEMENT 45 - 84 3.1 Introduction « 3.2 Customer 4 3.2.1 Internal Customers “6 3.2.2 External Customers 46 3.3 Customer Satisfaction Model 47 3.4 Customer Perception of Quality @ 3.4.1 Factors influencing customer perception of quality 48 3.5 Customer Feedback 48 3.5.1 Purpose of Feedback 48 35.2 Tools for Listening to the voice of the customer 49 36 Using Customer Complaints 51 3.6.1 Steps to Solve Customer Complaints 51 27 Service Quality 52 3.7.1 Service quality dimensions $2 ne Translating the Customer Needs into Requirements 83 ; oe Retention - A Strategic Process to Retain Existing Customers 56 211 eevee involvement -Introduction a ployee Motivation or ; : i Imoortance of Motivation bd aa Maftvaton is important both to an individual and a business 58 age, Theories of Motivation oe 313 ‘Mployee Surveys 82 of Employee Empowerment 63 vi a, 3.13.1 Advantages of Employee Empowerment 63 3.14 Teams 64 3.14.1 Types of teams 64 3.14.2 Characteristics of successful teams 65 3.14.3 Roles of team members 66 3.14.4 Making a team meeting effective 68 3.15 Suggestion system 68 3.16 Recognition and reward 69 3.17 Gain sharing 69 3.18 Performance Appraisal 70 3.18.1 Objectives of Performance Appraisal 70 3.18.2 Advantages of Performance Appraisal 74 3.19 Unions and Employee Involvement va 3.19.1 Benefits of employee involvement 72 Case Study 1: Regaining Samsung Customers 73 Case Study 2 : Google Employee Engagement 74 Review Questions 84 MODULE -4 CONTINUOUS PROCESS IMPROVEMENT 85 - 138 4.1, Introduction 85 4.1.1 Difference between Continual or Continuous 85 4.1.2 PDCA cycle 86 4.2. Process 86 4.3. The Juran Trilogy 87 4.4, Improvement Strategies 88 4.5. Types of problems in Continuous Process Improvement 89 4.6. PDSA cycle - Problem solving phases of Continuous Process Improvement 90 4.7 Problem solving method ot 4.8. Kaizen 93 4.8.1 Comparison between Kaizen and Innovation 94 4.9 Reengineering 95 4.10 Six Sigma 95 4.10.1 Six Sigma Methodology 98 4.11 STATISTICAL PROCESS CONTROL 100 4.12 Pareto chart 100 4.13 Process Flow Diagram 101 VIL 4.14 Cause and effect diagram an 4.15 Check sheets 104 4.16 Histogram 104 4.17 Scatter diagram 106 4,18 Statistical fundamentals 107 4.18.1 Measures of central tendency 108 4.18.2 Measures of dispersion 108 4.18.3 Population and sample 110 4.18.4 Normal curve 110 4.19 Introduction to control charts 112 4.19.1 Types of Variance 113 4.19.2 Sources of variation 113 4.19.3 State of Control 113 4.19.4 Out of control process 114 4.19.5 Classification of control charts 116 4.19.6 Development of a variable control chart 116 4.20 Control chart for attributes 119 4.20.1 Control chart for non conformities or defects 121 4.21 Process capability 123 Case Study 1 : On Six Sigma Process 126 Review Questions 137 MODULE-5 — TOOLS AND TECHNIQUES 139 -172 5.1 Tools and Techniques 139 5.2 Benchmarking 139 5.2.1 Types of benchmarking 139 5.2.2 Process of benchmarking 140 5.2.3 Approacl.2s to Benchmarking 141 5.3 Information technology 142 a Management Systems 146 ronmental Management System 146 5.5.1 180 14000 series of standards 146 5.5.2 Organizational evaluation standards 147 5.5.3 Product evaluation standards 147 554 Concepts of SO 14001 147 5.55 Benefits of EMS 5.8.6 Comparison between ISO 9000 and ISO 14001 149 Vill 5.5.7 Final words 5.6 Quality Function Deployment (QFD) 5.6.1 Definition and concept of Quality Fur.stion Deployment 5.6.2 History of QFD 5.6.3 Benefits of QFD 5.6.4 Voice of the customer 5.6.5 House of Quality (HoQ) 5.6.6 The Process of QFD 5.7 Quality by Design 5.7.1 Sequential Engineering 5.7.2 Concurrent Engineering 5.7.3 Rationale for implementation 5.7.4 Benefits of Quality by Design 5.7.5 Misconceptions and Barriers 5.8 Failure Mode and Effect Analysis (FMEA) 5.8.1 Stages of FMEA 5.8.2 Design / process FMEA document 5.9 Product Liability 5.10 Total Productive Maintenance 5.10.1 Eight pillars of TPM 5.10.2 Introduction to OEE REVIEW QUESTIONS Appendix - 1 (Statistical Value Tables) Appendix - 2 (Cumulative Standard Normal Distribution) Model Question Paper - 4 Model Question Paper - 2 Ix 150 150 150 150 152 152 154 155, 156 156 187 157 158 158 159. 160 164 169 169 174 172 473 474 4q7 419 — Principles and Practice Principles and Practice: Definition, basic approach, gurus of TQM, TQM Framework, awareness, defining quality, historical review, obstacles, benefits of TQM. Quality Management Systems: Introduction, benefits of ISO registration, ISO 9000 series of standards, [SO 9001 requirements 1.41 Introduction Quality as a discipline is seen as a measure of commitment to delivering the best possible products to the customer. As a customer, you try to purchase products or services that meet your expectations of quality. You compare the quality of a product with the quality of other similar products in the market. This kind of expectations and availability of variety of products has forced the business sectors to deliver quality products and services. Thus quality has become the critical aspect for any organisation. ‘The meaning of the term ‘quality’ is relative and can be perceived differently by different people. For customers, quality is all about how a product or service meets their requirements and expectations, such as functionality of the product, durability, timely delivery, service, and so on. On the other hand, from the perspective of manufacturers, quality is about the efficiency Total Quality Management (TQM) is an enhancement to the traditi business, jonal way of doing Total - Made up of the whole Quality - Degree of Excellence a Product or Service provides. Management - Art of handling, controlling, directing etc, TOM 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. Kaa Definition-Total Quality Management {otal Quality Management (TQM) involves the application of quality management ig to all aspects of the organization, including customers and suppliers, and their ime not With the key business processes. It is an approach which involves continuous provement by everyone in the organisation, TQM is a principle which involves the Wee 2 Total Quality Management 2 ~~ tual cooperation of everyone that aids the business process of an organisation and it mu f involves all the stake holders of an organisation. TQM is defined as a philosophy embracing all activities through which the needs and expectations of the customer and the community, and the objectives of the organisation are satisfied in most efficient and cost effective way by maximising the potentials of all ‘employees in a continuing drive for improvement,’ Narious Definitions of TQM: TQM as an approach to improve competitiveness efficiently and flexibility for the whole organisation, TOM can be defined as a management system which consist of interdependent unit namely core values, techniques such as process management, bench. marking customer focused planning or improvement teams and tools such as control chart s. TQM as a corporate culture that is characterised by through continuous improvement involving all employees “TQM is the mana the participation of all satisfaction, increased customer satisfaction in the organisation. gement approach of the organization, centred on quality, based on I its members and aiming at long-term success through customer and benefits to all members of the organization and to society”- ISO ~ ¥@ Basic Approach The success of TQM rests with following six concepts, 1. A committed and involved mana organizational support ‘You must remove fear from work pla ‘gement to provide long term top to bottom franagement to implement TQM to convincingly aria firm ‘commitment. 2. An unwavering focus on the customer, both internally and externally | Whatever you do to improve quality, train employees, integrate quality into processes, only customers determine whether your efforts were really worthwhile, Today the Panmes hold the key which open the lock of the fre ‘ 3. Effective involvement and utilization o y manufacturer, e Company Wide Quality Control, means nt Or one part of the Organization. People f the entire work fore Qc- artes TQM is mentioned by Japanese as Cw TOM is not to be restricted to one dep: Principles and Practice L£4> 'y just to do their job but to improve their job through innovative ideas that contribute to the growth of the company. 4. Continuous improvement of the business and production Process Presently, knowledge of using analytical or statistical methods, quality tools, and creative thinking helps organizations to become more efficient and Superior quality/performance is not a luxury, on continuing system’s analysis even when obtained. Improvement needs to be a regula the highest levels of quality and performanc 5. Treating suppliers as partners, Interaction with supplier is seen with each customers. These are “the quality chains”, cither a person or any one piece of equipme Customers or Suppliers. Failure to meet th chain will lead to a series of problems and si Hence, organization's relationship with sup, and internal) requirements, Establish performance measures for the processes, Processes if not measured will not yield the result as anticipated. Hence, quality must be measured in terms of productivity, cost, customer satisfaction, etc. to understand the progress. Establishment of proper metrics is critical to measure performance of Processes, AB Contribution of Quality Gurus Historically, must be encouraged not onl effective. it is essential to survival. Emphasis is a satisfactory solution to a problem is se excellence, of the departments, offices, sections or Which can be broken at any point by ‘nt for not meeting the requirements of le requirements in any part of a quality subsequent failures throughout the chain. pliers is vital to meet customers’ (external Japan has been a front runner in propagating quality management Philosophies and principles. After Japan was defeated in World Wor U1, there was an urgent need to reconstruct the economy. The philosophers, academia, and the government, agreed f0 make quality a Unique Selling Proposition for the Japanese product in the international markets. Management philosophers, mainly from the USA, Edward Deming and Joseph Juran, contributed in a big way for the development of Total Quality Management (TQM) and its implementation in Japan. The demand for Japanese products soared; and by the 1970s during Oil shock, many of such companies, who adopted these quality strategies, dominated the global market. merican and European companies realised that they could no longer ignore the quality Al ‘olution. This is when the business world developed a new appreciation for the effect of yy on production and price. Thus, post-World War II, quality gained an iconic status in the field of manufacturing. This led manufacturers to adapt dynamic strategies to address both mass Production and economic growth inn’ Lully understand the TQM movement, we need to look at the philosophies of notable individuals who have shaped the evolution of TQM. Their philosophies and teachings have contributed to our knowledge and understanding of quality today. Their individual Contributions are summarized in Table below. 7A Total Quality Management SI No Name and Description of Quality Guru Contribution ol Walter A. Shewhart (1891-1967), an American statistician, was also known as the father of statistical quality control Contributed to the understanding of process variability. Introduced statistical control charts. 02 W. Edwards Deming (1900-1993), an American statistician, author, and consultant. He was a proponent of quality management and is best known for his PDCA (Plan-Do-Check-Act) cycle of quality improvement. Laid emphasis on the participation of top management in quality improvement Developed 14 points to guide organisations in quality improvement. These 14 points are steps for implementing quality improvement processes in an organisation. 03 Joseph M. Juran (1904-2008), an American management consultant and engineer, authored a number of books in quality management and also known as an evangelist of quality management Defined quality as ‘fitness for use’. Introduced the ‘cost factor’ associated with quality, improvement Armand V. Feigenbaum (1922present), an American businessman and quality control expert, devised the term ‘TQM’, Introduced the concept of total quality control. 05 Philip B. Crosby (1926-2001), an American author and businessman, contributed significantly in the field of quality management. Coined the phrase “quality is free’. Introduced the concept of zero defects. Kaoru Ishikawa (1915-1989), a Japanese professor and innovator in quality management. Developed cause-and-effect diagrams. dentified the concept of internal customers. 07 Genichi Taguchi (1924-2012), @ Japanese engineer and statistician who applied statistics in quality management. Focused on product design quality. Developed the Taguchi loss function. + 1) Walter A. Shewhart: Walter A. Shewhart was a statistician at Bell Labs during the 1920s and 1930s. Shewhart studied randomness and recognized that variability existed in all manufacturing processes. He developed quality control charts that are used to identify whether the variability in the Process is random or due to an assignable cause, such as poor workers or mis-calibrated machinery. He stressed that eliminating variability improves quality, His work created the foundation for today’s statistical process control, and he is often referred to as the “grandfather of quality control.” 2) W. Edwards Deming: W. Edwards Deming is often referred to as the "father of quality control.” He was & statistics professor at New York University in the 1940s, After World War Il he assisted many Japanese companies in improving qualit proving 'y. The Japanese regarded him so highly that in 1951 they established the Deming Prize, an annual award given to firms that demonstrate Principles and Practice f TF + outstanding quality. It was almost 30 years later that American businesses began adopting Deming’s philosophy. A number of elements of Deming’s philosophy depart from traditional notions of quality. The first is the role management should play in a company’s quality improvement effort Historically. poor quality was blamed on workers—on their lack of productivity, laziness, or carelessness. However, Deming pointed out that only 15 percent of quality problems are actually due to worker error. The remaining 85 percent are caused by processes and systems, including poor ma ement. Deming said that it is up to managemetn to correct system problems and create an environment that promotes quality and enables workers to achieve their full potential. He believed that managers should drive out any fear employees have of identifying quality problems, and that numerical quotas should be eliminated, Proper methods should be taught and detecting and eliminating poor quality should be everyone's responsibility. Deming outlined his philosophy on quality in his famous “14 Points”. These points are principles that guide companies in achieving quality improvement. The principles are based on the idea that upper management must develop a commitment to quality and provide a system to support this commitment that involves all employees and suppliers. Deming stressed that quality improvements cannot happen without organizational change that comes from upper management. 3) Joseph M. Juran: After W. Edwards Deming, Dr. Joseph Juran is considered to have had the greatest impact on quality management. Juran originally worked in the quality program at Western Electric. He became better known in 1951, after the publication of his book "Quality Control Handbook’. In 1954 he went to Japan to work with manufacturers and teach classes on quality. Though his philosophy is similar to Deming’s, there are some differences. Whereas Deming stressed the need for an organizational “transformation,” Juran believes that implementing quality initiatives should not require such a dramatic change and that quality management should be embedded in the organization One of Juran’s significant contributions is his focus on the definition of quality and the cost of quality Juran is credited with defining quality as fitness for use rather than simply conformance to specifications. As we have known that defining quality as fitness for use, takes into account customer intentions for use of the product, instead of only focusing on technical specifications. Juran is also credited with developing the concept of cost of quality, which allows us to measure quality in dollar terms rather than on the basis of Subjective evaluations. Juran is well known for originating the idea of the quality trilogy: quality planning, quality control, and quality improvement. The first part of the trilogy, quality planning, 1s Necessary so that companies identify their customers, product requirements, and overriding business goals. Processes should be set up to ensure that the quality standards can be Met. The second part of the trilogy, quality control, stresses the regular use of statistical control methods to ensure that quality standards are met and to identify variations from Total Quality Mana jement ‘XNA ement. This part j the standards, The third part of the quality trilogy is quality improveme: Part is discussed in detail in continuous process imp ovement. c well as breakthrou, According to Juran, quality improvements should be continuous as Jobim hone Together with Deming, Juran stressed that to implement continuous imp ery herp ; a or bi need to have training in proper methods on a regular basis. 4) Armand V. Feigenbaui Another quality leader is Armand V. Feigenbaum, who tei ine a of tou quality control, In his book Total Quality Control, in 1961, he outlined his qual eo erlaeils in 40 steps. Feigenbaum took a total system approach to quality. He promoted the j lea of a work environment where quality developments are integrated throughout the entire Greanization, where management and employees have a total commitment to improve quality, and people learn from each other's successes. This philosophy was adapted by the Japanese and termed “company-wide quality control.” ‘5) Phillip B. Crosby - Philip B. Crosby is another fecognized guru in the area of TQM. He worked in the area of quality for many years, first at Martin Marietta and then, in the 1970s, as the vice president for quality at International Telegraph and Telephone(!TTeorp). He developed the Phrase “Do it right the first time” and the notion of zero defee ts. He argued that no amount of. defects should be considered acceptable. He rejected the idea that a small number of defects are a normal part of the operating process because systems and workers are imperfect. Instead, he stressed the idea of Prevention. To promote his concepts, Crosby wrote a book titled “Quality is Free’, which was published in 1979. He became famous for coining the Phrase “quality is free” and for Pointing out the many costs of poor quality, which include not only the costs of wasted labor, Squipment time, scrap, rework, and lost sales, but also organizational costs that are hard to quantify. Crosby stressed that, efforts to improve quality Pay more than invested because these costs re prevented. Therefore, quality is free. Like , Crosby stressed the rok fF quality tools called cause-and- ms. These diagrams are used for mmphasize the, em in detail in later modules. He was the pai portance of the “internal Customer,” the next person Pa ita, a" ‘St to stress the i ce of total » SOnKL rather than jus ea jane ot and services. Dr. Is be united with a shared vision and a qtuanization and that all employees shan be involve tt Pursued at every level of the implementation of quality « involved, f ircles, whic 1 Ishikaw: solve quality problems hich are small teams of Falk) pea ne oF Ishikawa diagran first quality guru to e in the production py company qualit believed that ‘4 Was a proponent of Smployees that volunteer to | Principles and Practice Ll 7) Genichi Taguehi Dr. Genichi Taguchi is a Japanese qi expert known for his work in the area of product design. He estimated that as much as 80 percent of all defective items are caused by poor product design, Taguchi stressed that companies should focus their quality efforts on the design stage, as it is much cheaper and easier to make changes during the product design stage than later during the production process, Taguchi is known for applying a concept called design of experiment to product design This method is an engineering approach that is based on developing robust design, a design that results in products that can perform over a wide range of conditions. Taguchi’s philosophy is based on the idea that it is easier to design a product that can perform over a wide range of environmental conditions than it is to control the environmental conditions. Taguchi has also had a large impact on today’s view of the costs of quality. He pointed out that the traditional view of costs of conformance to specifications is incorrect, and proposed a different way to look at these costs. Let's briefly look at Dr. Taguchi’s view of quality costs, Recall that conformance to specification specifies a target value for the product with specified tolerances, say 5.00 +/- 0.20. According to the traditional view of conformance to specifications, losses in terms of cost occur if the product dimensions fall outside the specified limits. This is shown in Figure 1.1. However, Dr. Taguchi noted that from the customer's view there is little difference whether a product falls just outside or just inside the control limits. Cost Loss No Loss Loss Target 5.00 <— tolerances ——> 0.480 0.520 Fig 1.1 : Taguchi’s Conformance to specifications He pointed out that there is a much greater difference in the quality of the product between making the target and being near the control limit. He also stated that the smaller the variation around the target, the better the quality. Based on this he proposed the following: as conformance values move away from the target, loss increases as a quadratic function. This is called the Taguchi loss function and is shown in Figure 1.2. TN Total Quality Management According to the function, smaller differences from the target result in smaller costs: the larger the differences, the larger the cost. The Taguchi loss function has had a significant Target 5.00 Fig 1.2 Taguchi loss function impact in changing the view of quality cost. fa Framework of TQM Figure 1.3 shows the framework for a TQM system. It begins with the knowledge provided by quality gurus-~ Shewhart, Deming, Juran, Figenbaum, Ishikawa, Crosby and Taguchi. As the figure shows, they contributed to the development of principles and practices and/or the tools and techniques. Some of these tools and techniques are used in the product and/or service realization activity. Feedback from internal/external customers or interested parties provides information to continually improve an organization's system, product and/or service, mae Principles | land Practices| Shewhart Deming Juran Feigenbaum / 4 / | | | Products or Service Realization People and Relationships Leadership Customer atisfaction Employee Involvement Supplier Partnership Fig 1.3 Framework of TOM Measure: Performance Measures Approach, Continuous Process Improvement Benchmadking Information Tecisology Quality Management Systems ‘onmental Managem: Quality funcuca Deployment Quality by Design Failure Mode & Effect Analysis Products & Service Liability Total Productive Maintenance Management Tools Stastical Process Control Experimental Design, Taguchi's Quality Engineering | aa Principles and Practice 44 9 41.5 Awareness An organization will not begin the transformation to TQM until it is aware of the fact that the quality of product or service should be improved. Awareness comes when an organization loses market share or realizes that quality and productivity go hand-in-hand. Italso occurs if TQM is mandated by a customer or i management realizes that TQM is a better way to run a business and compete in domestic and world markets. Automation and other productivity enhancements might not help a corporation if it is unable to market its products or services because of their poor quality. The Japanese learned this fact from practical experience. Prior to World War II, they could sell their products only at ridiculously low prices and even then it was difficult to secure repeat sales, Until 1980s, corporations had not recognized the importance of quality. However, a new attitude has cmerged-- quality first among the equals of cost and service. To sum it up, a customer wants value. Recent evidence shows that more and more corporations are recognizing the importance and necessity of quality improvement in order to survive domestic and worldwide competition. Quality improvement is not limited to the conformance of a product or Service to specifications. It also involves an inherent quality in the design of a system. The prevention of product, service and process problems is a more desirable objective than taking corrective action after the product is manufactured or a service rendered. TQM does not occur overnight. There are no quick remedies. It takes a long time to build an appropriate emphasis and technique into culture. Overemphasis on short-term results and profits should be set aside and long-term planning and constancy should be allowed to prevail 1.6 Definition of Quality AS a customer, you always expect to purchase quality products and services, But what do you actually mean by the term “quality’? The term quality can be understood Conformance to specifications: measures how well the product or service meets the largets and tolerances determined by its designers. For example, the dimensions of a machine part may be specified by its design engineers as 3°, inches. This would mean that the target dimension is 3 inches but the dimensions can vary between 2.95 and 3.05 inches. Similarly, the wait for hotel room service may be specified as 20 minutes, but there may be an acceptable delay of an additional 10 minutes. As these examples illustrate, conformance to specification is directly measurable, though it may not be directly related to the consumer’s idea of quality Fitness for use: It focuses on how well the product performs its intended function or use. For example, a Mercedes Benz and a Jeep Cherokee both meet a fitness for use definition ifone considers transportation as the intended function. However, if the definition becomes ‘More specific and assumes that the intended use is for transportation on mountain roads and 77 WN Total Quality Management carrying fishing gear, the Jeep Cherokee has a greater fitness for use. You can also see that fitness for use is a user-based definition in that it is intended to meet the needs ofa specific user group. nsumers often use for product or Value for price paid: It is a definition of quality that co c bines economics with consumer service usefulness. This is the only definition that com criteria; it assumes that the definition of quality is price sensitive. For example, suppose that you wish to sign up for a personal finance seminar and discover that the same class is being taught at two different colleges at significantly different tuition rates. If you take the less expensive seminar, you will feel that you have received greater value for the price. ided are often how the quality of a product or service is judged. Quality does not apply only to the product or service ‘tself; it also applies to she people, processes, and organizational environment associated with it. For example, the quality of a university is judged not only by the quality of staff and course offerings. but also by the efficiency and accuracy of processing paperwork. It is a subjective definition that focuses on the judgmental evaluation of what constitutes product or service quality. Different factors contribute to the evaluation, such as the atmosphere of the environment or the perceived prestige of the product. For example, a hospital patient may receive average health care, but a very friendly staff may leave the impression of high quality. Similarly, we commonly associate certain products with excellence because of their reputation; Rolex watches and Mercedes- Benz automobiles are examples. Today, there is no single universal definition of quality, Various TQM preachers have defined quality as follows Support services: Support services provi Psychological criteria: WwW. “Quality is a predictable degree of uniformity, at low cost and suited to the market Edwards Deming “Quality is fitness for use” - Joseph M. Juran “Quality is conformance to requirement” - Phillip B. Crosby “Quality is the minimum loss imparted by a product to society from the time the products shipped.” - Genichi Taguchi “Quality is a companywide issue and must be an all-pervasive influence on the way every issue of business is conducted” - Kaoru Ishikawa 180 9000:2005 has defined quality as “the degree to which a set of inherent characte fulfils requirements. Degree indicates the extent to which you can rate the quality of # product or services such as poor, moderate, good, excellent, ete.” Thus, you ean say hi quality is obtained when the products or services are able to delight you by fulfilling Yu" needs and expectations. fo et Principles and Practice an 4.7 Evolution of Quality Management Earlier, operational performances were examined and the decision was made whether to acceptor reject the final output. At that time, manufacturers were concerned about producing plenty of products to meet increasing demand. Therefore, they had to prioritise the quantity of products to be produced within the allotted time. As a result, Quality of product and services, Competency level of workers, Product appearance and safety, Durability and conformance were affected, To overcome these issues in manufacturing, a new inspection department was established. It was headed by the chief inspector, who had to report to the works manager. With the initiation of this new department, new concepts, such as standard, quality, training, and documentation came into practice in organisations. Earlier, the chief inspector was responsible for identifying product issues, informing or alerting the concerned people, and taking preventive measures. This gave rise to the quality control department, which was responsible for managing quality issues and the requirements of customers. Year Events Hawthorns studies demonstrated the importance of the social and psychological climate in work. 1924- 32 1924 _ | Shewhart developed statistical process control. (SPC) 1926 _| Bell Telephone began to apply statistical process control methods 1940s __| US army pushed the use of sampling methods during World War Il. Many attempts at work improvement undertaken (e.g. job enrichment, 1950s | work redesign, participative management, quality of work life, worker involvement), 1950 _| Deming’s first visit to Japan. Creation of Deming Application Prize in Japan, First edition of Juran’s Quality Control Handbook published 1951 1954 Juran’s first visit to Japan. Maslow’s theories about human needs Liberalisation of economy in Japan with pressure to improve quality to compete with foreign companies. MeGregor’s X and Y theories, 1961 _ | First edition of Feigenbaum’s Total Quality Control published. 1960 The idea of quality circles appeared in the first issue of the Japanese Journal Quality Control for the Foreman, 1970s _| The pressure of Japanese companies began to be felt in US companies. 1972 _| QFD was developed at Mitsubishi's Kobe shipyard. After the 1973 oil crisis the JIT system was adopted by a vast number of | 1973 | Japanese companies. A small number of US and European companies began to apply this system in the 1980s 1962 Total Quality Management Quality circles began to be widely introduced in the USA the first quality 1974 | circle programme was launched in Lockheed in 1974 and in the UK Rolls. Royce introduced the concept in 1979. - First edition of Crosby’s Quality is free published. Xerox Corp. started to 1979 apply benchmarking concept to processes. Publication of the BS5750 quality management series. go |At NBC television documentary about the “Japanese miracle” proposed 4980 | Deming as.a key element in this miracle, 191 | Ouchi’s Z theory — aimed at increasing loyalty of workers to company by providing them a job for life and focusing on their well being. 1982 _ | First edition of Deming’s Quality, productivity and competitive position published “Quality on the | 1983 | malysed the differ some of the reasons Taguchi's design of ". published by Garvin in Harvard Busines ees between Japanese and US companies, showing for the better performance of the Japanese. A paper about periments Was published in Harvard Business Review yggs_ | Navel System Command named its Japanese- style management approach “otal quality management” 1986 | F Review, irst edition of Deming’s Out of the Crisis published. It became a bestseller 1987 _ | First edition of sO 9000 quality management system series. Publication of the Malcolm Baldrige National Quality Award. The historical development of quality evolution did not occur 5 A management concept demonstrates that its consistent improvement abruptly in management philosophy, but gradually through stable This reflects a series of management innovations that were created during the twentieth century. Therefore, the TQM mov cement was not formulated as 4 Separate philosophy, but derived from previously established scientific management concepts. 1.7.1 Implementation of TQM The implementation of TQM requires significant investments and efforts from an organisation. Therefore, an organisation needs to identify its quality improvement needs before implementing TQM. To do so, it has to follow certain steps. Figure 14 shows the steps involved in TQM implementation Principles and Practice S Gaining top management's ‘commitment Formulating a Identifying nd masterplan for TOM | m3 | pecntzng customers implemen piers ¥ + aud quality level Kg ifving processes to customers demands Teaining and coaching Forming tems for standardizing the |

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