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Unit I: Introduction to Quality Concepts Unit I: Introduction to Quality Concepts - Definition of Quality, Dimensions of Quality, Quality Planning, Quality

costs - Analysis Techniques for Quality Costs , Basic concepts of Total Quality Management, Historical Review, Principles of T QM, Leadership Concepts, Role of Senior Management, Quality Council, Quality Sta tements, Strategic Planning, Deming Philosophy, Barriers to TQM Implementation. Quality is synonymous with innate excellence. This approach claims that quality ca nnot be defined precisely; we learn to recognize quality only through experience . For example, Mercedes Benz and Rolls-Royce as products of the automobile industr y that have achieved this level of excellence. Product based definitions view quality as a precise and measurable variable. Differences in quality reflect differences in the quality of some ingredient or attribute possessed by a product. For example High quality ice cream has a high butter fat content. In the user-based approach , the goods or services that best satisfy individual consumers different wants or needs are regarded as having the highest quality. Th is view of quality is personal i.e perceived quality. It is highly subjective and focuses on issues of fitness for use by the individual consumer. A value-based approach defines quality in terms of costs and prices. The earlier introduced quality management concept is now taken over by Total qua lity management. To have effective TQM the first requirement is strong internal motivation and em otional involvement for implementation. So the concept of TQM talks about adopting the new policy, creating quality prod ucts, eliminate defects, estimate for breakdown, accidents etc . Hence TQM should be purpose driven so first the whole organization should be wil ling to accept the change then only TQM can actually affect the organization in a positive way. It builds quality into the culture. Determine and continually monitor the cost o f poor quality. Quality and production are assigned to each customer segments. Benefits of quality to a firm 1. It gives a positive company image 2. It improves competitive ability both nationally and internationally. 3. It increases market share, which translates into improved profits. 4. Overall it reduces costs, which also translate into improved profits . 5. It reduces or eliminates product liability problems , avoiding unnecessa ry cost. 6. It creates an atmosphere for high employee morale, which improves produc tivity. Types of quality Indifferent quality is the quality that the customer does not notice or apprecia te. Indifferent quality evokes a response like , That is fine , but who cares? for exa mple , a garnish on a dinner plate or finger bowl , while nice, would probably not seem very important. Expected quality is the quality that the customer expects and demands. for examp le , people expect cars to be safe and reliable , hotel rooms to be clean and qu iet and coffee to be hot . People notice expected quality only when it is missing. One-dimensional quality is the quality that the customer expects , but that does not necessarily result in lots of order or displeased customer , when lacking. For example , a restaurant server who is rude and slow may not cause customer to leave , though they might leave smaller tips. However, customers would leave if they find an insect in the food served to them. The restaurants slow service is an one-dimensional quality .

Exiting quality is the quality that exceeds the customer expectations, attractin g favorable attention of customers. It is the quality that pleasantly surprises customers, perhaps creating an order winner. For example, quality experienced by owners of Mercedes-Benz and BMW cars while d riving these cars. It has to a great extent surpassed their expectations. DIMENSIONS OF SERVICE QUALITY (i) Reliability consistency of performer and dependability. (ii) Responsiveness willingness or readiness to provide service , timeliness (iii) Competence possession of skills and knowledge required to perform the se rvice (iv) Access approachability and ease of contact. (v) Courtesy politeness , respect , consideration for property, clean and ne at appearance. (vi) Communication educating and informing customer in language they can unde rstand , listening to customers. (vii) Credibility trustworthiness , belief , having customer s best interest at heart. (viii) Understanding needs , learning the specific requirement , providing in dividualized attention, recognizing the regular customers. (ix) Security freedom from danger, risk or doubt. (x) Tangibles the physical evidence of service (facilities , tools and equip ment). (xi) Performance : How well the product or service performs the customer inte nded use. For example , the speed of a laser printer. (xii) Features : The special characteristics that appeal to customers. For exa mple, power steering and central locking system of an automobile. (xiii) Serviceability: The cost and convenience of repairs and maintenance. (xiv) Durability : The length of time or amount of use before needing to be r epaired or replaced. (xv) Appearances : The effect on human senses- the look feel , taste, smell o r sound. (xvi) Customer service : The treatment received by customer before, during and after the sale (xvii) Safety : How well the product protect users before, during and after the use. The role of senior management Senior management, executive management, or management team is generally a team of individuals at the highest level of organizational management. Who have the day-to-day responsibilities of managing a company or corporation; t hey hold specific executive powers conferred onto them with and by authority of the board of directors and/or the shareholders. There are most often higher levels of responsibility, such as a board of directo rs and those who own the company (shareholders), but they focus on managing the senior or executive management instead of the day-to-day activities of the busin ess. In Project Management, senior management is responsible for authorizing the fund ing of projects. They are sometimes referred to, within corporations, as executive management, to p management, upper management, higher management, or simply seniors management These responsibilities include: They has responsibility for establishing the policies and practices that i) faci litate a flexible workplace and ii) are appropriate to the Centres work, workforc e and geographic locations. Establishing a flexible workplace policy that accommodates the differing work en vironments of the Centres headquarters and regional and country stations; Ensuring that new appointees are introduced to the policy during their induction ; and Ensuring that line managers live up to their responsibilities to approve flexibl

e work practices when possible. The Quality cycle Needs product

Interpretation of needs Specification

The cost of quality Quality costs are the costs associated with preventing, finding, and correcting defective work. These costs are huge, running at 20% - 40% of sales.3 Many of these costs can be significantly reduced or completely avoided. These are certain costs which are associated with product and service quality. Some costs are associated with preventing poor quality and some costs occur afte r poor quality occurs. Most experts on the costs of poor quality estimate losses in the range of 20 to 30 costs associated with quality management are: (i) Prevention cost (ii) Appraisal cost (iii) Cost of internal failure and (iv) Costs of external failure. Prevention costs are associated with preventing defects before they happen. Examples of poor quality include coding errors, design errors, mistakes in the use r manuals, as well as badly documented or unmaintainably complex code. Appraisal costs are incurred in assessing the level of quality attained by the o perating system of all activities aimed at finding products. Internal failure costs result from defects that are discovered during the produc tion of a product or service. Internal failure costs fall into two major costs categories: (i) yield losses wh ich are incurred if a defective item must be scraped and (ii) rework costs which are incurred if the item is re-routed to correct the defects or if the service must be performed again. External failure costs arise when a defect is discovered after the customer has received the product or service. External failure costs erode market share and profits. Examples of Quality Costs Associated with Software Products. Prevention Staff training; Requirements analysis ; Early prototyping; Fault-tolerant design ; Defensive programming; Usability analysis Clear specification; Accurate internal documentation; Evaluation of the reliabil ity of development tools of the product Appraisal Design review; Code inspection; Glass box testing; Black box testing; Training t esters; Beta testing; Test automation Usability testing; Pre-release out-of-box testing by customer service staff Seller: external failure costs These are the types of costs absorbed by the seller that releases a defective pr

oduct. Technical support calls Preparation of support answer books Refunds Replacement with updated product PR work to soften drafts of harsh reviews Lost customer goodwill Customer: failure costs These are the types of costs absorbed by the customer who buys a defective produ ct. Lost data Wasted time Lost business Embarrassment Frustrated employees quit Cost of replacing product Cost of reconfiguring the system Cost of recovery software Cost of tech support Injury / death Quality planning: Steps involved in the quality planning process are: (i) Identify the customer both external and internal (ii) Determine customer needs (iii) Develop product feature that respond to customer needs (iv) Established quality goals that meet the needs of customers and suppliers alike and do so at a minimum combined cost. (v) Develop a process that can produce the needed product features. (vi) Prove process capability. (vii) Quality goals based on meeting the needs of customers and suppliers alik e at a maximum combined cost are then established. (viii) Quality management system is a quality planning. (ix) The planning of the quality management system is carried out in order to meet the requirement. (x) The integrity of the quality management system is maintained when change s to the quality management system are planned and implemented. (xi) Total quality management is a managements approach towards the quality, i t can be in regard to products, customer satisfaction and employees satisfaction . Total Quality Management : The concept of TQM was developed by an American W. Edwards Deming and i.e. why i t is called as Demings concept of TQM . He introduced this concept for improving the quality of various products and ser vices. Earlie r it was just related with the quality of products which a organization i s producing but now other concepts like marketing, finance design, customer serv ice has also joined the area. TQM works on one belief that mistakes can be avoided and defects can be prevente d. And management should believe in watching each and every step. TQM is now a days called as TPM (total productivity management) and an organiza tion needs to consider ABCD for the effective application of TQM. where A stands for accident cure , B stands for breakdown , C stands for cost re duction and D stands for damage. This policy of ABCD is in relation to product and if TQM needs to be introduced a positive attitude from the side of management and employees is required and t hen a collective effort will come up. TQM should give chance for unleashing employees creativity and potential.

The aim of TQM is to reduce variations in quality of the products as well as in the working of whole organization. For the successful implementation of TQM, an organization must consider the comm itment from all the level of organization. A concept of Six sigma is a part of TQM. It is a strategy developed by Motorola and it helps to detect the defects and to remove them. TQM talks about the satisfaction of customer, supplier, employees etc. and it re quires continuous improvement. TQM works effectively if the organization works in a family manner. Here management is like a father, employees are the children and manager is like mother and as father and mother takes care for their home collectively the same way , management and managers are supposed to take care for their organizatio n with the help of tool called TQM. Because entire organization is involved, Quality means degree of excellence. And management in literal sense means getting things done by others. In a TQM effort, all members of an organization participate in improving process es, products, services and the culture in which they work. Elements of TQM Leadership:- Top management vision, planning and support. Employee involvement:- All employees assume responsibility for the quality of th eir work. Product/Process Excellence:- Involves the process for continuous improvement. Total quality management stresses on principles: Customer satisfaction Leadership Quality policy Organizational structure Quality cost Supplier selection and development Recognition and reward. Customer satisfaction is a relative concept that varies from one customer to ano ther. Also, a customer maybe satisfied with todays products but not satisfied in the fu ture. For example, while one customer may consider a Ford automobile perfectly satisfa ctory, another may not. Each person defines quality in relation to his or her needs and means at a parti cular point of time. Total quality management on "The Simple Process" WHY TQM PROGRAMS FAIL/ The most common causes for TQM program failure appear to be the following: (i) Lack of commitment from the top management. (ii) Focusing on specific techniques rather than on the system. (iii) Not obtaining employee buy-in and participation. (iv) Program stops with training Principals of TQM Methodology 1) 100% Commitment 2) Customer Driven 3) Detailed Process 4) Improvement Teams 5) Long Term Thinking 6) Management and Monitoring 7) Continual Improvement 8) Frequent Auditing 9) Employee Empowerment

10)

Measuring and Controlling

Concepts of Leadership Leadership = a relationship Selecting talent; Motivating; Coaching; Building Trust. Leadership is a process by which a person influences others to accomplish an obj ective and directs the organization in a way that makes it more cohesive and coherent. Leaders carry out this process by applying their leadership attributes, such as beliefs, values, ethics, character, knowledge, and skills. Leadership is a process whereby an individual influences a group of individuals to achieve a common goal. Leadership differs in that it makes the followers want to achieve high goals, ra ther than simply bossing people around. Leadership differs in that it makes the followers want to achieve high goals, ra ther than simply bossing people around. Four Factors of Leadership There are four major factors in leadership Leadership models help us to understand what makes leaders act the way they do. The ideal is not to lock you in to a type of behaviour discussed in the model, b ut to realize that every situation calls for a different approach or behaviour t o be taken. Two models will be discussed, the Four Framework Approach and the Managerial Gri d. PRINCIPLES OF LEADERSHIP 1. Know yourself and seek self-improvement - In order to know yourself, you have to understand your be, know, and do, attributes. Seeking self-improvement means continually strengthening your attributes. 2. This can be accomplished through self-study, formal classes, reflection, and interacting with others. 3. Be technically proficient - As a leader, you must know your job and have a solid familiarity with your employees tasks. 4. Seek responsibility and take responsibility for your actions - Search fo r ways to guide your organization to new heights. 5. when things go wrong, they always do sooner or later do not blame others . Analyze the situation, take corrective action, and move on to the next challen ge. 6. Make sound and timely decisions - Use good problem solving, decision mak ing, and planning tools. 7. Set the example - Be a good role model for your employees. They must not only hear what they are expected to do, but also see. 8. We must become the change we want to see - Mahatma Gandhi 9. Know your people and look out for their well-being - Know human nature a nd the importance of sincerely caring for your workers. 10. Keep your workers informed - Know how to communicate with not only them, but also seniors and other key people. 11. Develop a sense of responsibility in your workers - Help to develop good character traits that will help them carry out their professional responsibilit ies. 12. Ensure that tasks are understood, supervised, and accomplished - Communi cation is the key to this responsibility. 13. Train as a team - Although many so called leaders call their organizatio n, department, section, etc. a team; they are not really teams...they are just a group of people doing their jobs. 14. Use the full capabilities of your organization - By developing a team sp irit, you will be able to employ your organization, department, section, etc. to its fullest capabilities.

Quality Council:- ] 1) A quality council is establishing to provide overall direction. 2) It is the driver for the TQM engine. 3) In organization council is composed of Chief Executive officer, the seni or managers of the functional areas, such as design, marketing, finance, product ion and quality and a coordinator or a consultant. 4) The coordinator will ensure that the team are empowered and know their r esponsibility. 5) The responsibility of the coordinator is to built two way trust, propose team to council, and share council expectation to the team and brief council on team progress. 6) The coordinators activities are to assist the team leaders, share lesson s learned among team, and have regular leaders meetings. In general, the duties of the quality council are to:1) Develop with input from all personnel, the core values, vision statement , mission statement, and quality policy statement. 2) Develop the strategic long term plan with goal and the annual quality im provement program with objectives. 3) Create a total education and training plan. 4) Determine and continually monitor the cost of poor quality 5) Determine the performance measures for the organization approve those fo r the functional area and monitor them. 6) Continually determine those projects that improve the processes, particu larly those that affect external and internal customer satisfaction. 7) Establish multifunctional project and departmental or work group teams a nd monitor their progress. 8) Establish or revise the recognition and reward system to account for the new way of doing business. Quality statements:1) Quality statements include the vision statements, mission statements and quality policy statements. 2) Once developed they are only revived and updated. 3) They are part of strategic planning process. 4) The utilization of these three statements varies from organization to or ganization. 5) In fact small organization use only quality policy statements. 6) The characteristic of quality award winner is that all have a vision of what quality is and how to attain it. Vision statement:1) Vision statements are a short declaration of what an organization is to achieve tomorrow. 2) It is a ideal stage that might never be reached but strive to achieve. 3) Successful visions are timeless, inspirational, and become deeply shared within the organization. 4) These shared vision usually emerge over time. Successful visions provide a succinct guideline for decision making. Common characteristics are as follows:1) Quality is first among equal. 2) Meet the needs of the internal and external customer. 3) Equal or exceed the competition. 4) Continually improve the quality. 5) Include business and production practices. 6) Utilize the entire work force. Strategic Improper Planning:1) All constituents of the organization must be involved in the development of the implementation plan and any modification that occurs as the plan evolves . 2) It should be two-way communication of ideas by all personnel during the

development of the plan and its implementation. 3) Customer satisfaction should be the goal rather than financial or sales goal. Focus on quality and the other goal will follow. Barriers to TQM Implementation Once an organization embarks on TQM, there will be obstacles to its successful i mplementation. This section gives information concerning the obstacle associated with implement ation. The first eight common obstacles to its successful implementation. 1) Lack of management commitment:In order to organizational effort to succeed there must be substantial managemen t commitment of time and organizational resources. 2) Inability to change Organizational culture:Changing an organization culture is difficult task and takes much as five years. Management must understand and utilize the basic concepts of change. They are a. People change when they want to and to meet their own needs. b. Never expect anyone to engage in behaviors that serve the organization v alues unless adequate reason has been given. 3) Successful Implementation of TQM. c. Requires total integration of TQM into day-to-day operations. 4) Causes of TQM Implementation Failures. d. Lack of focus on strategic planning and core competencies. e. Obsolete, outdated organizational cultures. Deming Philosophy (i) On the importance of top managers in TQM. (ii) On the importance of both internal and external customer . (iii) A recognized a crisis of Quality in manufacturing. (iv) Deming is more process oriented. (v) Deming believed that everyone in the firm must contribut e to the successful implementation of TQM. (vi) Deming set a goal of project quality. (vii) Deming who emphasized more subtle indicators of quality. (viii) Deming identified variance as the target of TQM initiative. (ix) Deming advocated a break with traditional and a new approach to quality management.