OPERATIONS MANAGEMENT AND TOTAL QUALITY  Understanding the chain reaction transformed Japan from a shattered

MANAGEMENT economy to a successful nation challenging the USA after World War
II.
INTRODUCTION TO TQM

 QUALITY DEFINED DIMENSIONS OF QUALITY

 Juran - one of the quality gurus, defined quality as fitness for use.
 Quality does not mean an expensive product; on the
contrary, it is fitness for use of the customer.
 ISO 9000 standard - “The totality of features and characteristics of a
product or service that bear on its ability to satisfy a given or implied
need”.
 In the case of computer software- the ability to deliver the product
within the time schedule, within budget and with the least number of
defects.
CHAIN REACTION
Product Quality
1. Functionality- refers to the core features and characteristics of a product.
2. Reliability - an indicator of durability of products.
 measured by mean (average) time between failures
(MTBF).
3. Usability- A product should be easily usable. The customer should be
able to use the product easily without the help of experts.
 measured by the time taken for training an operator for
error-free operation of a system.

4. Maintainability- refers to the ease with which a product can be

maintained in the original condition.
For software - “A set of attributes that bear on the effort
needed to make specified modifications”

 measured as Mean Time To Repair (MTTR).

5. Efficiency- the ratio of output to input.

 This is applicable to most products.

6. Portability - set of attributes that bear on the ability of software to be

transferred from one environment to another.
 This is more important in the context of software.

Service Quality

1. Quality of Customer Service- meeting customers and finding out

their implied requirements.
This includes but is not limited to:

 How well the customer is received?

 How well the implied requirements are elucidated?
 How well the customer is treated/handled/satisfied?

2. Quality of Service Design - Since services are usually made to order, it

is important that the service is designed as per the requirements of the
specific customer.
  Quality of service design in turn depends on the quality
of customer service.

3. Quality of Delivery- important in any sector, but more crucial in case

of services.
 Defects on delivery should be zero to satisfy the 2. Deming W. Edwards (1900–1993)- An associate of Shewhart, ,
customers. worked in Western Electric Company as a statistician.
a) Timeliness- Delivery on schedule as per requirements of the - modified PDCA cycle of Shewhart to the Plan, Do, Study and
customer is a must both in the product sector as well as in service Act (PDSA) cycle
sector - advocated extensive use of statistics and control charts and
b) Aesthetics - A product or service should not only perform well but focused on product improvement and service conformance by
also appear attractive. reducing variations in the process.
c) Regulatory Requirements- as stipulated by the local and federal - proved that quality control methods could lower costs even in
governments it should be fulfilled by the product or service. an exclusive service organization.
Ex. an automobile has to meet Euro II Standards in respect of 3. Joseph M. Juran (1904)
emission to minimize environmental pollution.
d) Requirements of Society- The products should fulfill both the JURAN’S FITNESS OF QUALITY
stated and implied requirements imposed by society. However,
customer requirement should not violate society or regulatory 1. Quality of Design through market research, product, and
requirements. concept.
e) Conformance to Standards- Product or service should conform to 2. Quality of conformance through management, manpower and
the stated and implied requirements of customers. technology.
- Where applicable, they should conform to applicable standards 3. Availability through reliability, maintainability, and logistic
such as national standards, international standards and industry support.
standards. 4. Full service through promptness, competence, and integrity.

JURAN’S QUALITY PLANNING ROADMAP

EVOLUTION OF QUALITY
Quality Gurus and their Contributions:
1. 1. Dr Walter A Shewhart (1891- 1967)
- father figure of SQC, who developed control charts for
quality assessment and improvement
- advocated Statistical Quality Control (SQC) and Acceptable
Quality Level (AQL).
- AQL is the foundation of today’s Six Sigma.
- developed the Plan, Do, Check, Act (PDCA) cycle for
continuous improvement
He is the author of the following books:
 Identify your customers.
 Determine their needs.
 Translate them into your language.
 Develop a product that can respond to the needs.
 Develop processes, which are able to produce those product
features.
 Prove that the process can produce the product.
 Transfer the resulting plans to the operating forces.
4. Philip B. Crosby (1926)

a. Economic Control of Quality of Manufactured Products CROSBY’S FOUR ABSOLUTES OF QUALITY

b. Statistical Method from the View Point of Quality 1. Quality is conformance to requirements, nothing more or
Control nothing less and certainly not goodness or elegance.
 2.
Quality has to be achieved by prevention and not by 1. Quality of Design It refers to how well the product or service has been
appraisal. designed to meet the current and future requirements of customers and
3. The performance standard must be zero defect and not add value to all the stakeholders.
something close to it.
4. The measurement of quality is the price of non-conformance, 2. Quality of Conformance This indicates the consistency in delivering
i.e. how much the defects in design, manufacture, installation the designed product
and service cost the company. It is not indexes, grade one or
grade two.
5. Armand V. Feigenbaum 3. Quality of Performance Indicate the performance of the end product.
 President of American Society of Quality Control (1961–1963)
 “Quality is in its essence a way of managing the organization”. 4. Quality of Service Selling a product is not the end of the business. It is
the quality of associated services rendered that adds value to the
Feigenbaum’s cycle time reduction methodology product. Quality of services involves all activities that will enable the
customer to procure and use the product without any hassles.
1. Define process.
2. List all activities.
3. Flowchart the process. III. QUALITY PLANNING (QP)
4. List the elapsed time for each activity.  QC activities include testing, inspection, examination and audit
5. Identify non-value adding tasks. at various stages of product or service life cycle. Therefore,
6. Eliminate all possible non-value adding tasks.
quality has to be planned for every product or service and
documented in the form of a quality plan
6. Kaoru Ishikawa (1915–1989)  In order to consistently meet customer requirements, the quality
 A Quality Guru from Japan of 4 Ms namely — Man, Machine, Material and Methods need
 advocated the use of cause and effect diagrams to be ensured.
 He developed Fishbone or Ishikawa diagram for cause and effect
QP involves planning for the following with regard to a product or service or
analysis
project or a contract:
 Other Quality Gurus include James Harrington, Taguchi and
Shingo.  Quality objectives to be met
 Specific of QA/QC practices
 Resources needed
I. QUALITY CONTROL (QC)  Sequence of QA/QC activities.
 The operational techniques and activities that are used to fulfill the
requirements for quality
IV. QUALITY IMPROVEMENT
 Inspection or appraisal of products and services to ensure that the
stated requirements are fulfilled.
 This process aims at attaining unprecedented levels of
performance, which are significantly better than the past level.
II. QUALITY ASSURANCE (QA)
STRATEGIC PLANNING
 All the planned and systematic activities implemented within the
quality system, and demonstrated as needed, to provide adequate  Strategic planning is important for any business. It involves
confidence that an entity will fulfill the requirements for quality making plans for the following, in particular:
1. Business value
2. Investment in machinery and equipment
3. Manpower to be hired
 4. Budget  The word “Total’’ implies that all members of the organization make
5. Product diversification consistent efforts to achieve the objective of customer delight through
6. Markets to be served systematic efforts for improvement of the organization
7. Strategies for improving profits, etc.  It was Feigenbaum who coined the phrase “Total Quality Control
 In 1985, the Americans came up with the term Total Quality
Strategic planning is carried out generally at annual intervals and is carried out Management (TQM) to represent essentially the Japanese way of
using a formal structured approach. The strategic planning is kept confidential Quality Management
due to obvious reasons.
Just-In-Time (JIT)

JIT focuses on right scheduling so as to keep inventory as low as possible. This

V. QUALITY MANAGEMENT (QM)
According to ISO 9000 standards, Quality management comprises “All activities
of the overall management function that determine the quality policy, objectives
and responsibilities and implement them by means such as quality planning,
quality control, quality assurance and quality improvement within the quality
system.”
Chronology of evolution of methodologies for quality assurance.
requires a perfect partnership between supplier and customer.
ISO 9000 Standards
ISO 9000 Standards were released for the first time in the year 1987 to bring in
system for quality in every organization. The standard was revised in 1994 and
later in the year 2000. The standard in the latest version advocates TQM and
continuous process improvement

Deming Award for Quality

To express their gratefulness, Japanese instituted a Quality Award in the name

of Deming in the year 1951. The award is now given not only to companies in
Japan, but even overseas who excel in quality.

 THE CUSTOMER AND PRODUCT

What is a customer?
 Anyone who is impacted by the product or process delivered by an
organization.

a. External customer: The end user as well as intermediate processors.

Other external customers may not be purchasers but may have some
connection with the product.
b. Internal customer: Other divisions of the company that receive the
processed product.

What is a product?

 TOTAL QUALITY MANAGEMENT (TQM)  The output of the process carried out by the organization. It may be
 Total Quality Management (TQM) is customer oriented management goods (e.g. automobiles, missile), software (e.g. a computer code, a
philosophy and strategy. It is centered on quality so as to result in report) or service (e.g. banking, insurance)
customer delight.
How is customer satisfaction achieved?
Two dimensions:  QUALITY PERSPECTIVES
1. Product features
2. Freedom from deficiencies.
Typical responses about the definition of quality would include:
Product features
 Refers to quality of design. Examples in manufacturing industry:
Performance, Reliability, Durability, Ease of use, Esthetics etc.
Examples in service industry: Accuracy, Timeliness, Friendliness and
courtesy, Knowledge of server etc.
Freedom from deficiencies
 Refers to quality of conformance. Higher conformance means fewer a.
complaints and increased customer satisfaction. 5
 WHY QUALITY?
Reasons for quality becoming a cardinal priority for most organizations:
b.
1. Competition – Today’s market demand high quality products
at low cost. Having `high quality’ reputation is not enough!
Internal cost of maintaining the reputation should be less.
2. Changing customer – The new customer is not only c.
commanding priority based on volume but is more demanding
about the “quality system.”
3. Changing product mix – The shift from low volume, high
price to high volume, low price have resulted in a need to
reduce the internal cost of poor quality. d.
4. Product complexity – As systems have become more complex,
the reliability requirements for suppliers of components have
become more stringent.
e.
5. Higher levels of customer satisfaction – Higher customers’
expectations are getting spawned by increasing competition.
Relatively simpler approaches to quality viz. product inspection
for quality control and incorporation of internal cost of poor
quality into the selling price, might not work for today’s
complex market environment.
 Everyone defines Quality based on their own perspective of it.
1. Perfection
2. Consistency
3. Eliminating waste
4. Speed of delivery
5. Compliance with policies and procedures
6. Doing it right the first time
7. Delighting or pleasing customers
8. Total customer satisfaction and service
Judgmental perspective
 “goodness of a product.”
 Shewhart’s transcendental definition of quality – “absolute and
universally recognizable, a mark of uncompromising standards and
high achievement.”
 Examples of products attributing to this image: Rolex watches,
Lexus cars.
Product-based perspective
 “function of a specific, measurable variable and that differences in
quality reflect differences in quantity of some product attributes.”

 Example: Quality and price perceived relationship. 9
User-based perspective
 “fitness for intended use.”
 Individuals have different needs and wants, and hence different
quality standards.
 Example – Nissan offering ‘dud’ models in US markets under the
brand name Datson which the US customer didn’t prefer.
Value-based perspective
 “quality product is the one that is as useful as competing products
and is sold at a lesser price.”
 US auto market – Incentives offered by the Big Three are
perceived to be compensation for lower quality.
Manufacturing-based perspective
 “the desirable outcome of a engineering and manufacturing practice, or
conformance to specification.”
 Engineering specifications are the key!
 Example: Coca-cola – “quality is about manufacturing a product that
people can depend on every time they reach for it.” 11
 To make them work, the management has to do the following:
 QUALITY LEVELS
 Reward
 HISTORY OF TOTAL QUALITY MANAGEMENT  Coerce
 Intimidate
- The TQM philosophy was evolved in Japan after World War II.  Punish

Edwards Deming, -an American quality expert helped the Japanese to apply If this theory is applicable to any employee, then the organization cannot
concepts of TQM. function with such employees. This theory assumes that the employees cannot
be trusted and the employees have to be supervised all the time.

EMPLOYEE INVOLVEMENT Theory Y

Employee motivation is a subject, which is difficult to understand. However, a Douglas McGregor is the author of Theory Y. McGregor’s theory of people are
brief introduction to the same has been given. The behaviour of the employees given below:
in an organization typically follows three patterns—the top-notch, who are self-  Want to learn
actualized, the middle one who are fence sitters, and the bottom most, who do  Work is a natural activity
not want to get motivated. The fence sitters join any one of the other groups
 Have self discipline
depending upon the way in which the organization is managed
 Develop themselves

These employees do not get motivated as much by any reward, but they seek
freedom to do difficult and challenging jobs, all by themselves. If all employees
TQM principles and strategies pertaining to employee involvement.
are of this type, then there is no need for supervision
 Motivation
 Teamwork
 Training and Mentoring
 Recognition and Rewards  MASLOW’S NEED THEORY
 Feedback and Performance appraisal
 Empowerment Theory Z
 Abraham Maslow believes that good qualities are inherent in people, at
 THE NEED FOR EMPLOYEE INVOLVEMENT least at birth; although later on they are gradually lost. He believes that
five basic human needs, motivate the employees:

Theory X

Sigmund Freud is the author of Theory X. Theory X characterizes employees as

given below:

 Avoid work
 No ambition
 No initiative
 Do not take responsibility
 Needs security
 4. Working conditions
5. Interpersonal relations
6. Salary
7. Status
8. Security

B. MOTIVATION
Self-actualizing Needs
 They are the greatest motivators for human beings. He believes that The motivation factors include:
humanbeings are always dissatisfied and they would like to achieve 1. Achievement
more and more. That is the reason forachievements. Thus, Theory Z has 2. Recognition for achievement
some overlapping with Theory Y. 3. Interest in the task
4. Responsibility for enlarged task
Physiological Needs (Lowest) 5. Growth and advancement to higher level tasks
 This is the basic need for any human being. Every human being
wantsto earn a living for himself and his family. When the
physiological needs are satisfied, the safety needtakes over. At this  DEVELOPMENT OF A MOTIVATED WORK FORCE
stage, the human beings look for job security. After this, the need for
love or belonging arises. Every human being wants to belong to a  IMPORTANCE OF TEAMS
reputed organization. When all the above three are satisfied, then the
human being looks for self-esteem and self-respect. He looks for Why teams?
recognition and appreciation. In the next stage, the human beings look  teams are made to do more work, which individuals can’t. However,
for self-actualizing fulfillment. They would like to develop themselves this concept erodes with time. When the organization gets larger,
as creative persons and want job satisfaction. Thus, an employee’s need people start defeating the very purpose of increasing the manpower
rises to the higher level when he attains satisfaction at the current level. and the net output comes down. It is quite logical therefore that team
members have to work together, in the interest of the organization in
fulfilling the basic expectations of the employers.
 HERZBERG’S TWO-FACTOR THEORY
Teamwork Results in a Win-Win Situation
HERZBERG’S THEORY
the team can have the following benefits if they work for a win-win
Frederick Herzberg has divided the motivational aspects of human situation:
beings into the following:
 achieve dramatic results ,which individuals can’t
 Hygiene Theory  make best use of skills of each member of the team
 Motivation  make right decisions
 get more enjoyment and job satisfaction.
A. The hygiene theory
- is the minimum that every employee requires for not being dissatisfied. The problems of win-lose are summarized below:
Without the above, the employee will get dissatisfied. These are the
basic needs. Further efforts are needed to motivate the employees.  wastes time
 creates conflict
The hygiene factors include:  stops people listening
1. The company  spoils happiness and health of team members.
2. Its policies and its administration
3. The kind of supervision which people receive while on the job  BARRIERS TO TEAM PROGRESS
 • Quality Planning
1. Difficulty of Supervisor and Team Members in New Roles • Quality Control
2. Supervisor Resistance • Quality Improvement
3. Misalignment

 DECISION-MAKING METHODS

 BENEFITS OF EMPLOYEE INVOLVEMENT

Teamwork Results in a Win-Win Situation

the team can have the following benefits if they work for a win-win
situation:

 achieve dramatic results ,which individuals can’t

 make best use of skills of each member of the team
 make right decisions
 get more enjoyment and job satisfaction.

The problems of win-lose are summarized below:

 wastes time
 creates conflict
 stops people listening
 spoils happiness and health of team members

CONTINUOUS PROCESS IMPROVEMENT

I. JURAN’S TRILOGY There are three regions, chronic waste, quality improvement and new zone
 good financial results are achieved in an organization through of quality control.
three managerial processes:
 planning (i) Quality planning is completed before the operations begin.
 control
 improvement. (ii) Quality control is helpful to keep the fire under control, namely the
 defects under control. The defects have emanated due to defects in
The quality trilogy consists of the same three managerial processes quality planning.
 (iii) To reduce the high level of defects, the organization initiates quality
improvement which decreases the defect level. Juran’s trilogy
should be applied to improve quality at periodic intervals. Thus, it
is useful for continuous improvement of quality.

Therefore, an organization should initiate quality improvement efforts on a

continuing basis and update the quality planning. Thus, a quality plan is a
living document,revised often.

(iii) Standardization

II. KAIZEN
 a Japanese word.
 It means gradual, orderly and continuous improvement PDCA AND 7 QUALITY TOOLS
 Kaizen does not need any capital investment, but it requires time
and efforts of every employee in the organization  Kaizen advocates usage of seven quality tools for problem solving. It
also calls for using PDCA cycle for improvement of processes. It
encourages forming cross-functional teams for improvement. The team
RESUTS OF KAIZEN should identify improvement opportunities and implement them by
following the PDCA cycle for effectiveness. This will facilitate
1. Productivity improvement of 40 per cent
effective implementation for improvement.
2. Work In Progress (WIP) reduction of 70 per cent
3. Machine set up time reduction of 30 per cent
4. Space reduction for manufacturing by 40 per cent and no
additional capital investment

TWO ACTIVITIES OF KAIZEN

1. Maintenance -activities directed at maintaining current technological,

managerial and operating standards
2. Improvement- aims at revising the current standards.

There are essentially three basic principles of Kaizen.

(i) Work place effectiveness

(ii) Elimination of waste, strain and discrepancy
 Elimation of 3 MUs Muda (waste), Muri (strain), Mura
(discrepancy)
GOAL OF KAIZEN

KAIZEN IMPLEMENTATION

The organizations embrace Kaizen in two ways as given below:

(i) Gradual improvement of processes

(ii) Kaizen Blitz- a quick improvement methodology

5S PRACTICES

 Kaizen is a carefully evolved strategy by Japanese for

improved competitiveness of business. It is more than just a
tactical weapon. It is also a collection of tools. The Kaizen
toolbox includes the 5S for improving workplace
effectiveness. 5S is rather a management tool focused on
fostering and sustaining high quality housekeeping.
l improvement process
using Kaizen
5S PRACTICES

1. Seiri (sort) Separate out all unnecessary things and eliminate

them.
2. Seiton (straighten) Arrange the essential things in order, so that
they can be easily accessed.
3. Seiso (scrub) Keep machinery and working environments clean.
4. Seiketsu (systematize) Make cleaning and checking as a routine
practice.
5. Shitsuke (standardize) Standardize the previous four steps.

5S CERTIFICATION

National Productivity and Competitiveness Council (NPCC) of Mauritius offers

5S Certification.

• was introduced in April 2002.

• It is aimed at developing and assisting the productivity
culture across Mauritius

THE SEVEN DEADLY WASTES

Wastes cannot be totally eliminated but can be reduced to the minimum. Toyota,
the Japanese automobile manufacturer, identified the following seven types of
wastes as the most common in industries.

1. Overproduction Waste
This occurs due to failure of production planning when money is blocked in the
unsold products. When the programming language Java was popular before the
bursting of dot COM bubble, an ambitious book supplier stocked large volume
of Java books. When there was a change in requirement and many copies were
not sold, he had to close down the organization. Therefore, overproduction is
very harmful. Just-InTime (JIT) is the right approach. But practicing JIT needs a
healthy organization practicing Kaizen.
2. Waste due to Waiting
Work-In-Progress (WIP) is a direct measure of quality of the organization. A
product is nearly completed but waiting for a particular part to arrive from
another country. Hence the product cannot be shipped. This is WIP and an
example of waste due to waiting.
3. Transportation
Unnecessary transportation is a waste. Therefore, every assembly line should be
under one roof preferably. The plant layout should be organized such that there
is no back and forth movement anywhere. If there is no conveyor, the goods or
semi-finished products should be transported using trolleys or carts. But the
distance traveled should be kept at the minimum.
4. Processing Waste
The machinery should be kept in smooth working condition by periodic and
preventive maintenance to eliminate processing waste. If a process is held up
due to breakdown of the machinery, money is lost. Furthermore, appropriate
tools and fixtures should be provided so that the time taken for manufacturing is
optimum. The design of the product should be such as to enable easy
manufacturability, testability and maintenance.
5. Inventory Waste
Supply chain management should be such that there are no excess materials.
Similarly, the organization should produce exact number of every part.
Sometimes they produce a little more to take care of eventualities. Even such
extra items can become huge in due course of time, necessitating selling them as
a scrap. In the stores also reorder levels should be fixed for every item on
scientific basis to avoid dead stock. The poor housekeeping can lead to valuable
items lying on some cupboards unnoticed. Every part should be accounted to
avoid inventory waste.
6. Waste of Motion
As Watts Humphrey 6 says, the purpose of driving is to reach the destination on
time and not to spin the wheel. This happens if the person does not have the
map. Similarly, if the workers are not trained in their job properly, there will be
lot of motion but no work. Searching for things, non-availability of the correct
tools, not monitoring the running machine etc. can cause wastage of lot of time.
The objective of the organization should be to add value by every motion of the
employee and machinery.
7. Product Defects
The defective parts or supplies cause loss of money. Not only that, managing the
scrap causes unnecessary work like, safe custody, accounting, disposal as well
as cause strain on the space available for good manufacturing. Thus eliminating
scrap through zero defects is the only solution to the problem.
BUSINESS PROCESS REENGINEERING (BPR)
“the fundamental rethinking and radical redesign of business processes to
achieve dramatic improvement in critical, contemporary measures of
performance, such as cost, quality, service and speed”.
The five phases of reengineering cycle are given below:
1. Planning
2. Process Study
3. Study of the best practices
4. Redesign
5. Implementation
BPR AND TQM
The aim of BPR is to make dramatic improvement in quality. There is a lot of
debate as to whether BPR is an alternative to TQM. Some proponents feel that
TQM is outdated and BPR will replace TQM altogether. There are a lot of
misconceptions about BPR, vis-a-vis TQM. TQM is not only continuous
improvement, but, has many other facets as given in the various chapters. BPR
is one of the tools to achieve TQM as discussed in this section

THREE OF THE QUALITY GURUS COMPARED

A. SHEWH
A RT
 • Statistician at Bell Laboratories
• Developed statistical control process methods to distinguish
between random and nonrandom variation in industrial processes
to keep processes under control.
• Developed the “plan-do-check-act” (PDCA) cycle that emphasizes
the need for continuous improvement.
• Strongly influenced Deming and Juran.
 SHEWART’S PDSA CYCLE
SHEWHART’S PLAN-DO-CHECK-ACT (PDCA) CY CLE WALTER A.
 CONTINUOUS PROCESS IMPROVEMENT CYCLE
B. W. EDWARDS DEMING
 Advocated Statistical Process Control (SPC)
• Methods which signal shifts in a process that will
likely lead to products and/or services not meeting
customer requirements.
• Emphasized an overall organizational approach to
managing quality.
• Demonstrated that quality products are less costly
than poor quality products.
• Identified 14 points critical for improving quality.
 The Deming Prize
• Highest award for industrial excellence in Japan.
• DEMING’S PDCA CYCLE
 The Deming cycle: Originally developed by Walter Shewart,
but renamed in 1950s because Deming promoted it
extensively.
 Plan – Study the current system; identifying problems; testing
theories of causes; and developing solutions.
 Do – Plan is implemented on a trial basis. Data collected and
documented.
 Study – Determine whether the trial plan is working correctly by
evaluating the results.
 Act – Improvements are standardized and final plan is
implemented
 DEMING’S 14-POINT PHILOSOPHY
C. KAORU ISHIKAWA
1. Create constancy of purpose for improvement of product and service. • Developed problem-solving tools such as the cause-and-effect
2. Adopt the new philosophy. (fishbone) diagram.
3. Cease dependence on mass inspection. • Called the father of quality circles.
4. End the practice of awarding business on the price tag alone.
5. Improve constantly and forever the system of production and training.
6. Institute training.  KAORU ISHIKAWA’S DIAGRAM
7. Institute leadership.
8. Drive out fear.
9. Break down barriers between staff areas.
10. Eliminate slogans, exhortations, and targets for the workforce.
11. Eliminate numerical quotas.
12. Remove barriers to pride in workmanship.
13. Institute a vigorous program of education and retraining.
14. Take action to accomplish the program.

EX.

14 points for management:

1. Create and publish to all employees a statement of the aims and

purposes of the company. The management must demonstrate their
commitment to this statement.
2. Learn the new philosophy. D. JOSEPH
3. Understand the purpose of inspection – to reduce the cost and improve M. JURAN
the processes. • Emphasized the importance of producing quality products through
4. End the practice of awarding business on the basis of price tag alone. an approach focused on quality planning, control, and
5. Improve constantly and forever the system of production and service. improvement.
6. Institute training • Defined product quality as “fitness for use” as viewed by the
7. Teach and institute leadership. customer in:
8. Drive out fear. Create an environment of innovation. - Quality of design
9. Optimize the team efforts towards the aims and purposes of the - Quality of conformance
company. - Availability
10. Eliminate exhortations for the workforce. - Safety
11. Eliminate numerical quotas for production. - Field use
12. Remove the barriers that rob pride of workmanship.
13. Encourage learning and self-improvement. • Categorized the cost of quality as:
14. Take action to accomplish the transformation. - Cost of prevention
- Cost of detection/appraisal
- Cost of failure
  Supervisors can direct their attention more on improvement than
supervision, which will facilitate communication.

 JURAN’S TRILOGY

 QUALITY IMPROVEMENT STRATEGIES

 KAI ZEN AS UMBRELLA FOR CONTINUOUS IMPROVEMENT

 Japanese for gradual and orderly continuous improvement over a long

period of time with minimum financial investment, and with
participation by everyone in the organization.
 Improvement in all areas of business serves to enhance quality of the
firm.
 Three things required for successful kaizen program: operating
practices, total involvement, and training.
 Operating practices expose opportunities for improvement. JIT reveals
waste and inefficiency as well as poor quality.
 Every employee strives for improvement. Top management views
improvement as part of strategy and supports it. Middle management
can implement top management’s improvement goals by establishing,
maintaining, and upgrading operating standards. Workers can engage
through suggestions, small group activity.
 Middle management can help create conducive environment for
improvement by improving cooperation amongst departments, and by
making employees conscious of their responsibilities for improvement.
 Kaizen is defined as ongoing improvement involving everyone in the
organization.
 Kaizen is the umbrella concept that covers most of the uniquely
Japanese management practices that have helped Japanese companies
start from zero in the 1950s to become world class competitors in the
1980s. The graphic illustration below conveys the ideas
 THE 5 S
1. Seiri (sort) Separate out all unnecessary things and eliminate
them.
2. Seiton (straighten) Arrange the essential things in order, so that
they can be easily accessed.
 3. Seiso (scrub) Keep machinery and working environments clean. constructed with a base length equal to the range of values in that specific
4. Seiketsu (systematize) Make cleaning and checking as a routine group, and an area proportional to the number of observations falling into
practice. that group.
5. Shitsuke (standardize) Standardize

MANAGEMENT AND PLANNING TOOLS

 THE ISHIKAWA DIAGRAM OR FISH BONE DIAGRAM

 Also called fishbone diagrams (because of their shape) or Ishikawa

diagrams.
 Helps in identifying root causes of the quality failure. (Helps in the
diagnostic journey.)

 SCATTER DIAGRAM

• Scatter Diagrams are used to present measurements of two or more related

variables. A Scatter Diagram does not specify dependent or independent
variables. Either type of variable can be plotted on either axis. Scatter
 I Diagrams represent the association (not causation) between two variables.
shikawa
Diagram
is also
called
Cause-
and-
Effect
Diagram. 
Often are C
four
generic
heading used: 4 M´s!

 HISTOGRAM

• A histogram divides up the range of possible values in a data set into

classes or groups.
For each ONTROL CHART
group, a
rectangle A control chart consists of the following:
is
a. A Centre Line (CL) drawn at the process mean value.

b. Lower and Upper Control Limits that indicate the threshold at

which the process output is considered statistically unlikely.
  It can be noted that the 3 defects of out-of-dimension, poor surface
finish and loose joints account for 75% of the rejections.  

• PAR
ETO DIAGRAM

 The purpose of the Pareto Diagram is to highlight the most important

set of factors among a typically large amount of causes for a problem

 In order to develop the Pareto Diagram for a specific process, the

knowledge of Frequncy, Relative Frequency, Cumulative Frequency
and Percentage Frequency is needed.