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TQM EXAM NOTES

RASHMI.S

PAPER 1

PART A - 1. GOALS OF TQM
• There are 5 goals of TQM. • 1. Customer Delight- Customer Needs • Customer & supplier relationship – customer pays salary – idea. • 2. Continuous Improvements – value additions . • 3 .Total employee involvement & empowerment – team work – Motorola, Ford teams , TVS – Sundaram Iyengar. • 4 .Optimization of resources – all resources optimum – no extras. • 5 .Do Right At First Time – collect data, check suitability & see how the knowledge is useful to u & use it for competitive adv.

QUALITY COST • • • • • Quality cost is the sum of all costs a company invests to ensure that there is release of a quality product. and correcting defective work There are 3 types of quality costs. finding. Design Reviews/Checking Documents Checking Supplier Evaluation/Education Capability Studies Tool Inspection Operator Training Inspection Quality Audit/Education/ Zero Defect Programme Customer Inspection . Prevention Cost Appraisal Cost Failure Cost Prevention Cost: involved in ensuring that faulty or defections / rejections are not produced in very first instance. They are associated with preventing. viz.2.

Rework. Unplanned Purchase Corrective Action/NCR Warranty/After Sales Service Product Liability .Appraisal Cost: Costs involved in carrying out the actual inspection. Prototype Inspection Design Evaluation Qualification Tests Purchase Surveillance Incoming Inspection Product Inspection Calibration Failure Cost : Direct / indirect costs incurred on those products/ services which fail to comply with the prescribed standards. Redesign Effort Engineering Changes Scrape.

Do not depend on Mass Inspection : Use sampling methods for inspection .3. author. Learn a new Philosophy : Learn new techniques-challenge the working 3. Consistency of Purpose : Top Management should follow vision. 1900 – December 20. andconsultant. 1993) was an American statistician.DEMING • DEMING: William Edwards Deming (October 14. lecturer. testing and sales (the last through global markets)[1] through various methods. • • 1. professor. known widely as Deming’s 14 principles are. He is regarded as having had more impact upon japanese manufacturing and business than any other individual not of Japanese heritage. he taught top management how to improve design (and thus service). including the application of statistical methods. Deming made a significant contribution to Japan's reputation for innovative highquality products and its economic power. Mission and objectives to be achieved 2. TQM GURUS . His 14 principles. product quality.

5. b) Production workers 6. Japanese – 1 vendor only. crisp communication – in local lang & reach in shortest time – notice boards. 8. 7.Encourage new skills-Innovation -continuous improvement 14 . 12.Educate vendor & make him understand responsibility.. Improve communication: proper. feedback . Reduce the number of vendors – Indian corporates – more. proactive 9.. consider work standards carefully – tolerance – not important. 10. Teach statistical Methods : SPC-for process capability .4. usage – important .measure every 3 months.new methods for process.machine capability. 85% of quality with mgmt. Drive out fear : Self sustaining. 13 . Improve supervision for continuous improvement: existing process – inventory. no overdesign. Recognize two sources of namely a ) Management and production systems : Integrate all process. Use statistical knowledge.6 sigma – statistics excellent… . WIP…. daily meeting…. .cheaper cost @ same quality. eliminates fear – Reliance – individual decisions. 11. Improve on the job Training : Training for best results – continuous improvement – assess training needs – in local Lang. Eliminate fear : wrong decisions – experience.

Deming Application Award – org that achieve distinctive performance through tqm throughout the yr. TQM AWARDS – DEMING AWARD • • • • • • • • Deming’s Prize is the Japanese quality award for individuals and groups that have contributed to the field of quality control. There are 4 categories of the Deming awards. Established in 1951 by Japanese Union of Scientists and Engineers (JUSE) to recognise those who excel in quality control and as a way of driving quality control.4. 2. 1 . The Deming distinguished service awards for dissemination & Promotion Overseas – individuals – activities outside Japan. It was also established to thank Dr. the Quality control award for operations business units: operation business units achieved distinctive performance through tqm in a designated yr. Deming Prize for individuals – individuals – outstanding contribution in tqm and statistical methods in tqm . 4. . Deming for his accomplishments and impact in the Japanese industry. 3.

Seat Division Asahi India Glass Limited. • Some of the Indian Co’s that have got the Deming Prize are. Farm Equipment Sector Lucas-TVS Ltd.• The Deming Application Prize is an annual award presented to a company that has achieved distinctive performance improvements through the application of TQM. the division may apply for the Prize separately from the company. Auto Glass Division Tata Steel Limited (2008) (2003) (2004) (2005) (2007) . be it public or private.(2001) TVS Motor Company Ltd.. • There is no limit to the number of potential recipients of the Prize each year. large or small. • • • • • • • • Sundaram-Clayton Limited. any organization can apply for the Prize. Krishna Maruti Limited.(1998) Sundaram Brake Linings Ltd. • Regardless of the types of industry. Brakes Division . or domestic or overseas. All organizations that score the passing points or higher upon examination will be awarded the Deming Application Prize. Provided that a division of a company manages its business autonomously. (2002) Mahindra and Mahindra Ltd.

Assessment model of the DAP 1 Policy-Management and quality policy Policy creation-consistency of policies-Review-Relation ship between policy and plans. 2 Organizations and Management 3 Education and dissemination 4 Quality information management 5 Analysis 6 Standardization 7 Control/Management 8 Quality Assurance 9. Results/effects 10 Future plans .

currently being used by around 897. It can help bring out the best in your organization by enabling you to understand your processes for delivering your products/services to your customers. but management systems in general.primarily deals with production operations and assembly • ISO 9003. staff motivation and continual improvement. • ISO 9002 .000 organizations in 170 countries worldwide. ISO 9001 SERIES • ISO 9001 is by far the world’s most established quality framework.5.primarily deals with final inspection and testing to assure quality in the products that the company receives from other companies . • ISO 9001 – this sets out the criteria you will need to meet if you wish to operate in accordance with the standard and gain certification. • ISO 9001 is one of a series of quality management system standards. and sets the standard not only for quality management systems. It helps all kinds of organizations to succeed through improved customer satisfaction. The ISO 9001 series of standards consist of: • ISO 9000 – this introduces the user to the concepts behind the management systems and specifies the terminology used.

these are designed to be used by senior management as a framework to guide their organizations towards improved performance by considering the needs of all interested parties. not just customers. 20 elements are no longer required) Emphasizes continual improvement. management responsibility.g. ISO 9001:2008-It gives the requirements for quality management systems. gives guidance to organizations that provide services to customers that may or may not have a product to offer Some software organizations usually support the products they supply instead of designing or manufacturing the products. It is firmly established as the globally implemented standard for providing assurance about the ability to satisfy quality requirements and to enhance customer satisfaction in supplier-customer relationships. and resources management Is broader so that more industries can apply the quality standards to their areas . Revised from ISO 9001:1994 Requires organizations that are already certified to update their quality systems to comply with the new standards Differs from ISO 9001:1994 in terms of quality models (e.• • • • • • • • • ISO 9004 – Guidelines for performance improvement: based upon the eight quality management principles.

Rather than designing defects. lets design quality into the product right from the beginning . results in a loss for the company. IMPORTANCE OF TAGUCHI’S LOSS FN • Simply put.6. k = loss coefficient x = measured value t = target value • • The Taguchi Loss Function is a graphical depiction of loss developed by the Japanese business statistician Genichi Taguchi to describe a phenomenon affecting the value of products produced by a company. Deming states that it shows • L(y) = K (y-m)2 = Loss at a point • where. the Taguchi loss function is a way to show how each non-perfect part produced. .

• It was important to the Six Sigma movement by driving an improved understanding of the importance of Variation Management • Finally. • Primarily. Instead "loss" in value progressively increases as variation increases from the intended condition. a business management discipline focused on better understanding the impact of dynamic business conditions (such as sudden changes in demand seen during the 2008-2009 economic downturn) on loss. and helped fuel the continuous improvement movement that since has become known as lean manufacturing • The Taguchi Loss Function is important for a number of reasons. and thus on creating value.• Concept : quality does not suddenly plummet when. a machinist exceeds a rigid blueprint tolerance. This was considered a breakthrough in describing quality. . for instance. It was important to describing the effects of changing variation on a system. which is a central characteristic of Lean Dynamics. to help engineers better understand the importance of designing for variation.

made by any process anywhere in the world. • The key phrase in the ISO 9001 standard of "management systems". ISO 9001 is all about management of processes and procedures.4. ISO 9001 – PROCESS OF CERTIFICATION • ISO 9001 is the internationally recognized standard for the quality management of businesses. ISO 9001 does not deal with product or service quality issues. • It applies to the processes that create and control the products and services an organization supplies.PART B. • It prescribes systematic control of activities to ensure that the needs and expectations of customers are met • It is designed and intended to apply to virtually any product or service. • It came into effect as on Dec 2008. . after revision from the ISO 9000: 9004 series.

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The requirement standard. Ensures Consistency in the delivery process. Measurement Analysis and Improvement. for certification and updation includes the following main sections: 1. Resource Management 4. basis for corrective action and continuous process improvements. Better standing in the market. Quality Management System 2. Management Responsibility 3. ISO 9001:2008. . Better implementation and sustaining of procedures/forms introduced as the system is subject to audit. Product Realization 5.• • • • • • • • • • • • • • • • • • BENEFITS Planning each and every activity in the system. Operations will tend to shift towards System orientated from Person oriented. avoids duplication or missed/ delayed actions causing delays / added costs. Documenting the process/ activities generate means for audit. Training new personnel becomes easier with the documented procedures/ instruction. Education delivery service marketed shall be from an ISO 9001 certified Institute.

11.CERTIFICATION. Study existing system. 14. 4. identify the gaps.Pre-assessment audit by certification agency (Optional).Application to the certification agency. 6. 9.Monitor implementation through Management Review meetings. 7. 3. Generation of Quality policy. and Forms/Format) linked to the Process identification. Internal auditors training for reporting non-conformities in Quality System. Quality Manual development and finalization.Conduct Internal Audits and fine-tune the system. analyzing the data and taking actions for improvements 5. 12. Re-define the Resource Management to measure competency of all the staff and demonstrate improvements in the competency through HRD 8. 10.Compliance audit by certification agency. 13. ISO awareness to Management and Senior Staff. 2. Objectives and Measures. Identify Processes carried out in the functions and develop system for the same. Set departmental objectives identify measures and set mechanism for measuring the data. Work Instruction. .• • • • • • • • • • • • • • • • • • • • STEPS TO ISO 9001 1. Quality System Documentation (Procedures. 15.

. The cost of certification charged • by the certification agencies depends on the size and area of operation to be • covered. SAQAS. ISOQAR. There are a number of foreign agencies operating world wide providing • ISO 9001 certification. In principle if we narrow down on the Certification • agencies. etc. BVQI.• ISO 9001 certification is granted after audit by a number of certification • agencies. quotations may be obtained and finalized. TuV. These are DNV. • There are also Indian agencies granting certification. these are BIS and STQC. • Guidance shall be given to client in selecting the certification agencies at appropriate • time of the ISO 9001 activities. KPMG. • The cost of certification fees charges depends from Agencies to agencies and • includes • Registration fees • Certification audit fees • Surveillance audit fees • Based on the activities carried out in the Institute. the scope of certification has to be defined and certificate issued accordingly.

• Effects analysis refers to studying the consequences of those failures.] . or item especially ones that affect the customer. it generally describes the way the failure occurs. function or functionality. FAILURE MODE EVALUATION ANALYSIS (FMEA) • A Failure mode and effects analysis (FMEA) is a procedure for analysis of potential failure modes within a system. design." • Failure effect: The immediate consequences a failure has on the operation. • It is widely used in the manufacturing industries in various phases of the product life cycle and is now increasingly finding use in the service industry as well.3. or status of some item. and can be potential or actual. • [Failure mode: "The manner by which a failure is observed. either for the classification by severity or determination of the failures' effect upon the system. • Failure causes are any errors or defects in process.

• FMEA begins during the earliest conceptual stages of design. later it is used for process control. • FMEA was formally used by the US military and the aerospace / rocket science dept. • It may be used to evaluate risk management priorities for mitigating known threat-vulnerabilities.• The oldest form of the FMEA is the trial and error method. • It is used in many formal quality systems such as QS-9000 or ISO/TS 16949. before and during ongoing operation of the process and continues throughout the life of the product or service. . after which it was introduced by Henry Ford as safety & regulatory consideration & to improve their production and design. • The purpose of the FMEA is to take actions to eliminate or reduce failures. starting with the highest-priority ones. • FMEA helps select remedial actions that reduce cumulative impacts of life-cycle consequences (risks) from a systems failure (fault).

• • • • • • • • • • • • PROCESS OF FMEA: straightforward – 3 phases. Consider both intentional and unintentional uses.hostile environment. Pre – Work: Before starting with an FMEA. Step 1: Severity: Determine all failure modes based on the functional requirements and their effects. Block diagram of the system -major components or process steps and how they are related. If an effect has a number 9 or 10. Examples of failure modes are: Electrical short-circuiting. Describe the system and it’s function. the robustness analysis and past history must be looked into through the Interface Matrices. based on which the engineers prioritize.worksheet created. Each effect is given a severity number(S) from 1(no danger) to 10(important). each failure mode should be listed in technical terms and for function. or protecting the user from the effect. . Which uses are desirable & which are not. corrosion or deformation. actions are considered to change the design by eliminating the failure mode. As a failure mode in one component can lead to a failure mode in another component. if possible. Around this the FMEA can be developed. Boundary Diagrams and Parameter Diagrams. Hereafter the ultimate effect of each failure mode needs to be considered. A severity rating of 9 or 10 is generally reserved for those effects which would cause injury to a user or otherwise result in litigation.

Step 3: Detection When appropriate actions are determined.• • • • • • • • • • Step 2: Occurrence In this step it is necessary to look at the cause of a failure and how many times it occurs. Each combination from the previous 2 steps. After this the Risk Priority No’s ( RPN ) must be calculated. Identify testing. First. analysis. All the potential causes for a failure mode should be identified and documented. that prevent failure modes from occurring or which detect the failure before it reaches the customer. From these controls an engineer can learn how likely it is for a failure to be identified or detected. . an engineer should look at the current controls of the system. Ex: excessive voltage. A failure cause is looked upon as a design weakness. monitoring and other techniques that can have been used on similar systems to detect failures. Again this should be in technical terms. Actions need to be determined if the occurrence is high This step is called the detailed development section of the FMEA process. The proper inspection methods need to be chosen. A failure mode is given a probability number 1-10. receives a detection number (D). it is necessary to test their efficiency. This can be done by looking at similar products or processes and the failures that have been documented for them. Also design verification is needed. This number represents the ability of planned tests and inspections at removing defects or detecting failure modes.

• Tracking and managing potential risks in the design. and minimize or eliminate those effects.• • • • • • • • • • • • • • • The failure modes that have the highest RPN should be given the highest priority for corrective action. recommended actions with targets. • Evaluation of the requirements of the customer to ensure that those do not give rise to potential failures. • Ensuring that any failure that could occur will not injure the customer or seriously impact a system. This helps avoid the same failures in future projects. responsibility and dates of implementation are noted. • Development of methods to design and test systems to ensure that the failures have been eliminated. The FMEA should be updated whenever: • At the beginning of a cycle (new product/process) • Changes are made to the operating conditions • A change is made in the design • New regulations are instituted • Customer feedback indicates a problem Uses of FMEA • Development of system requirements that minimize the likelihood of failures. . • Identification of certain design characteristics that contribute to failures.

• Advantages • • Improve the quality. reliability and safety of a product/process • • Improve company image and competitiveness • • Increase user satisfaction • • Reduce system development timing and cost • • Collect information to reduce future failures. capture engineering knowledge • • Reduce the potential for warranty concerns • • Early identification and elimination of potential failure modes • • Emphasis problem prevention • • Minimize late changes and associated cost • • Catalyst for teamwork and idea exchange between functions • FMEA can be used in diff types for the diff industries. .

. manufacturing processes or support requirements. or QFD.2. • QFD works by first identifying and prioritizing customer requirements and expectations. is a tool that helps in improving the existing processes by focusing energy and attention on efforts that will ensure the greatest result. QUALITY FUNCTION DEPLOYMENT • Quality Function Deployment. design features. • This information can be used to focus with greater confidence on the important customer requirements as a starting place to define such things as product requirements. • QFD was developed to bring a personal interface to modern manufacturing and business & bridge the growing distance between producers and users.

development. • QFD provides a system of comprehensive development process for: • • Understanding customer needs • • What 'value' means to the customer • • Understanding how customers or end users become interested. manufacturing. choose. • engineering. and are satisfied • • Analyzing how do we know the needs of the customer • • Deciding what features to include • • Determining what level of performance to deliver • • Intelligently linking the needs of the customer with design. and service functions • • Intelligently linking Design for Six Sigma (DFSS) with the front end Voice of • Customer analysis and the entire design system .• implements elements of Systems Thinking with elements of Psychology and Epistemology (knowledge).

empowering organizations to exceed normal expectations and provide a level of unanticipated excitement that generates value. business process development. • The QFD methodology can be used for both tangible products and non-tangible services. healthcare. . software products. translate these into actions and designs.• QFD helps organizations seek out both spoken and unspoken needs. and focus various business functions toward achieving this common goal. and many other applications. government. environmental initiatives. IT projects. service industry. including manufactured goods.

• Implementation: • Define the project. -compare each customer expectation against list of identified product or • • • • service requirements . Prioritize your requirements Establish targets. Construct the QFD set of matrices .with intended results.. • Develop the first relationship matrix.perceive as the customer will think / expect. ..generates a list of the important process characteristics that must receive special attention to ensure that design features are met. • Create the team – • Get buy-in – commitment from all members • Define customer expectations. Check your work –reality survey with customers. • Define the requirements that will satisfy your customers’ expectations – how to satisfy their requirements.

the Union of Japanese Scientists and Engineers (JUSE) saw the need for tools to promote innovation. or simply the seven management tools. Not all the tools were new. often called the seven management and planning (MP) tools. The seven MP tools.1. but their collection and promotion were. are: Affinity diagram: Relations diagram: Tree diagram: • • • • • • • • Matrix diagram: Matrix data analysis Arrow diagram Process decision program chart (PDPC): . communicate information and successfully plan major projects • . listed in an order that moves from abstract analysis to detailed planning. A team researched and developed the seven new quality control tools. NEW 7 QC TOOLS OF MGMT • In 1976.

• • • • • • • • • • • Affinity dig: Large vol of data are gathered and organized. A sequence / pattern formation is the main aim. Relations diagram: Also called as Inter relationship diagram. Tool for operational planning & initial diagnosis of issues.. Mostly used in addressing customer dissatisfaction issues. final chart shows steps from the initial problem to the final problem in a sequential development. tools for verbal data. . Ideas. Tree Diagram: tool for non – numerical data. Relationships between diff causative factors & main issue are established. shows the relationships between an issue and its component elements. Solves problems on the basis of logical analysis and linkages with the prob. opinions and facts relating to a problem are grouped.identifies causes which cause problems.

• It is a multi variate analysis technique. • ideas are conceived on a 2 dimensional basis. presented in a matrix dig to find general indicators that differentiate & give clarity to a large no of complexly intertwined info. . a prioritization matrix uses pairwise comparisons of a list of options to a set of criteria in order to choose the best option(s). The L-shaped matrix. • Quantifies & arranges data. • Matrix data analysis: Also known as principal component analysis. • The intersection of the rows & columns are checked for determining the nature & strength of the problem • helps in arriving at key ideas & effective way of perusing & solving the issue.• Matrix diagram : consists of a set of rows & columns.

• The sub tasks & the total work are linked together by arrows & a dig is constructed to depict the activities. Qualitative tool . 1. 5. task on hand is new/ unique. • Process decision Program Chart (PDPC): Method which maps out conceivable contingencies & events that can occur in any implementation plan along with appropriate counter measures. It is used when . that needs to occur when the problem / goal is an unfamiliar one. 4.Plans each possible tool of events. • It projects the likely completion time & monitors all sub tasks for adherence to necessary schedule. • The total task/ work is broken down into sub tasks. • • • • • • • .• Arrow diagram : Tool to plan the most appropriate schedule for the completion of a complex task & its related sub tasks. Consequences of failure are severe. 2. – Projects. Implementation plan has sufficient complexity. Contingencies must be planable. 3. Efficiency of implementation is crucial.