Assignment No 

8 (Unit IV)  
 
Dated: 30/06/2021 
Subject Name: Operations Management  
Subject Code: (MS-110) 
Submitted by- ANURAG KUMAR

Enroll- 00712303920

Question-A detail notes on the TQM concept 

A note on continuous improvement and statistical quality control. 

Answer-Total Quality Management is defined as a customer-oriented

process and aims for continuous improvement of business operations. It ensures
that all allied works (particularly work of employees) are toward the common
goals of improving product quality or service quality, as well as enhancing the
production process or process of rendering of services. However, the emphasis
is put on fact-based decision making, with the use of performance metrics to
monitor progress.

Concept of Total Quality Management

While there are some differences in total quality management principles and
their approaches to implementation, the basic concept of total quality
management is common.
Continuous improvement of quality
Foremost among TQM concepts is the idea of continuous improvement of
quality. The underlying aim of total quality management is to improve the
quality of products and services in any organization. By so doing, productivity,
employability and customer service are improved.
When an organization focuses on this concept of total quality management, they
are able to achieve the best.
Focus on the customer
Another TQM concept is a central focus on the customer. The customers are the
internal and external recipients of an organization’s products. Therefore, the
needs of customers and their desires define quality for the organization.
In turn, the organization uses this ‘definition’ to meet and exceed the customer’s
expectations.
Operations improvement
Furthermore, systematic improvement of operations is another concept of total
quality management. Every work done in an organization follows a chain or
process. These processes account for 80-85% of the quality of work and
productivity of employees. This concept establishes that work processes should
be studied, through individuals or teams, to identify lapses or complexities.
As such, solutions can be proffered to prevent them from occurring in the
future, the cost will be reduced and quality achieved.
Humana resources
The concept of human resources development is one of the concepts of total
quality management. Organizations that employ total quality management
principles are committed to employee learning and development. These
principles require that management trust that well-trained staff can do the jobs
assigned to them properly.
In addition, human resource development includes providing the training
required in a quality improvement work environment as well as extensive
education to help employees keep up-to-date on their jobs.
TQM leadership
Similarly, another concept of TQM is about management responsibility for
TQM leadership. Managers are responsible to lead the transformation of an
organization to imbibe the culture of quality. They must accept the
responsibility for continuous quality improvements and be dedicated to
empowering others.
Hence, the goal of management will be to ensure that everyone does a better job
and act as a facilitator and catalyst for total quality in the organization.
Importance of Total Quality Management
There are many disadvantages to a successful implementation of total quality
management principles. However, if an organization practices total quality
management in part, they might inevitably run into trouble.
Therefore, the importance of total quality management cannot be
overemphasised (Powell, 1995). Below are some of the benefits of TQM for the
organisation.
Quality products and services
First and foremost, total quality management is important because it ensures
quality products and services. The quality of a product can be measured by its
performance, durability and reliability. As such, quality differentiates an
organization from its competitors.
Total quality management ensures that necessary changes in the system are
made. These changes, in turn, result to quality products and services that meet
and exceed customer satisfaction.
Customer satisfaction
Similarly, total quality management is also essential for customer satisfaction.
When customers are satisfied, it results in customer loyalty.
Consequently, satisfied and loyal customers introduce new customers to the
organization. Customers only return to an organization if they are satisfied with
the products and services and it fulfils their needs. By so doing, total quality
management ensures that beneficial feedbacks are collected from customers and
carefully monitored.
Also, defects are eliminated, continuous changes and improvements are made
by the organization.
Increased profits
Furthermore, total quality management ensures increased revenues and higher
profitability for the organization. As a result, employees also enjoy prompt
payments of salaries, increased benefits and morale to work. In addition,
employee turnover and cost of hiring and training new staff are reduced. Also,
employees are satisfied and motivated to deliver their responsibilities to the
organization.
Hence, total quality management increases an organization’s profitability by
minimizing cost, waste, errors and inventory. It also ensures close coordination
and teamwork among employees as they all work together to achieve the goals
and objectives of quality in the organization.

Statistical quality control, the use of statistical methods in the monitoring and
maintaining of the quality of products and services. One method, referred to as
acceptance sampling, can be used when a decision must be made to accept or
reject a group of parts or items based on the quality found in a sample. A second
method, referred to as statistical process control, uses graphical displays known
as control charts to determine whether a process should be continued or should
be adjusted to achieve the desired quality.

statistics: Statistical quality control

Acceptance sampling

Assume that a consumer receives a shipment of parts, called a lot, from a

producer. A sample of parts will be taken and the number of defective items
counted. If the number of defective items is low, the entire lot will be accepted.
If the number of defective items is high, the entire lot will be rejected. Correct
decisions correspond to accepting a good-quality lot and rejecting a poor-quality
lot. Because sampling is being used, the probabilities of erroneous decisions
need to be considered. The error of rejecting a good-quality lot creates a
problem for the producer; the probability of this error is called the producer’s
risk. On the other hand, the error of accepting a poor-quality lot creates a
problem for the purchaser or consumer; the probability of this error is called the
consumer’s risk.

The design of an acceptance sampling plan consists of determining a sample

size n and an acceptance criterion c, where c is the maximum number of
defective items that can be found in the sample and the lot still be accepted. The
key to understanding both the producer’s risk and the consumer’s risk is to
assume that a lot has some known percentage of defective items and compute
the probability of accepting the lot for a given sampling plan. By varying the
assumed percentage of defective items in a lot, several different sampling plans
can be evaluated and a sampling plan selected such that both the producer’s and
consumer’s risks are reasonably low.

Statistical process control

Statistical process control uses sampling and statistical methods to monitor the
quality of an ongoing process such as a production operation. A graphical
display referred to as a control chart provides a basis for deciding whether the
variation in the output of a process is due to common causes (randomly
occurring variations) or due to out-of-the-ordinary assignable causes. Whenever
assignable causes are identified, a decision can be made to adjust the process in
order to bring the output back to acceptable quality levels.

Control charts can be classified by the type of data they contain. For instance,
an x̄-chart is employed in situations where a sample mean is used to measure the
quality of the output. Quantitative data such as length, weight, and temperature
can be monitored with an x̄-chart. Process variability can be monitored using a
range or R-chart. In cases in which the quality of output is measured in terms of
the number of defectives or the proportion of defectives in the sample, an np-
chart or a p-chart can be used.
All control charts are constructed in a similar fashion. For example, the centre
line of an x̄-chart corresponds to the mean of the process when the process is in
control and producing output of acceptable quality. The vertical axis of the
control chart identifies the scale of measurement for the variable of interest. The
upper horizontal line of the control chart, referred to as the upper control limit,
and the lower horizontal line, referred to as the lower control limit, are chosen
so that when the process is in control there will be a high probability that the
value of a sample mean will fall between the two control limits. Standard
practice is to set the control limits at three standard deviations above and below
the process mean. The process can be sampled periodically. As each sample is
selected, the value of the sample mean is plotted on the control chart. If the
value of a sample mean is within the control limits, the process can be
continued under the assumption that the quality standards are being maintained.
If the value of the sample mean is outside the control limits, an out-of-control
conclusion points to the need for corrective action in order to return the process
to acceptable quality levels.