Total Quality Management

TQM
Who pays your salary ?
 My boss !

Accounts department !!
Owner

Customer !!!
It is the customer who pays our
salary

So

She is the person you have to

keep happy !
If it is the customer who pays your
salary,

If it the customer that you have to

keep happy,

we have to know what she wants

The customer wants a

good product at

good price at

the time she wants it

The Triad of Customer Expectation

Quality

Cost / Delivery
Price
Profit = Quantity sold (Unit Price – Unit Cost)

Profit = Q (P – C)

Cost Profit

Volume Price
• Quality is the factor which can influence all
the three
– Quantity
– Cost
– Price
Quality is not a pursuit of ego

Quality is an imperative for

Survival, Growth, Prosperity
 Quality is not a pursuit of ego

Quality is an imperative for Survival,

Growth, Prosperity

Far more than that,

Quality is for better living

Quality is for better living
The view of an organisation
 SUPPLIERS

Systems Finance

Design Purchase Mfg Logistics Distribution Marketing Service

Support HR MANUFACTURING
PPC
HR Stores
Recruitment Safety
Training Maintenance
IR Production
Welfare Quality control
Safety
• There was a time when businesses could
prosper with poor quality
• Then came a time when you could be
thrown out due to poor quality
• Now you can’t even enter the business if
you have poor quality
• And you may have good quality but if
some one else gives a better product, or
your product quality goes down, you could
be out of business
• Watches – Titan, Timex, HMT
• Two wheelers –
• Cell phones
• Cars
Quality
 Common definitions of quality
• The totality of features and characteristics of a
product or service that bear on its ability to
satisfy given needs

• Quality is fitness for use or purpose – J M Juran

• Conformance to requirements

• Quality = Performance / Expectations ( P / E )

 Dimensions of Quality
• Performance
• Features
• Conformance
• Reliability
• Durability
• Serviceability
• Responsiveness
• Aesthetics
• Reputation
• Safety
The Quality Revolution
 Broad timelines

Statistical methods Increased Deming assists Japan emerges TQC emerges in

emphasis on McArthur as world quality US
Walter Shewhart process leader
improvement 1950s
1920s Deming, Deming, Juran,
Deming, Juran Ishikawa, Taguchi Feigenbaum

1940s 1960s - 70s 1960s

Zero defects TQM emerges

movement
In US Deming, Juran
Taguchi, Crossby
Crossby
1980s-90s
1960-70s
 The Japanese Juggernaut
• Steel
• Ships
• Motorbikes
• Cars
• Medical equipment
• Transistors
• Audio products
• TVs
• Office Automation products – Fax, Copiers, Scanners
• Musical instruments
• Heavy machinery
• Measuring instruments
• Walter A Shewart
– Economic control of manufactured product
• Dr. W E Deming
– Out of crisis
• Dr. Joseph M Juran
– The Quality control Handbook
– The Quality trilogy
• Dr. Ishikawa
– Cause Effect Diagram
• Armand Feigenbaum
• Philip Crossby
– Quality is free
• JUSE – Union of Japanese Science and engineering
• Taguchi
– Design of experiments
 Dr.W Edwards Deming

• First arrived in Japan in 1947 to help

McArthur prepare for a Census.
Out of the crisis
 Out of the Crisis
• Management in some companies in Japan observed in 1948 and 1949 that
improvement in quality begets naturally and inevitably improvement of
productivity
• Consumer is the most important part of the production line. Quality should
be aimed at the needs of the consumer, present and future.
• Quality begins with the intent ,which is fixed by management. The intent
must be translated by engineers and others into plans specifications, tests,
products
• Improvement of quality became at once with total commitment
– Companywide – all plants, management, engineers, production workers,
suppliers, everybody
– Nationwide
– Embracing every activity in production & Service
• In the state of statistical control ,action initiated on appearance of a defect
will be ineffective and will cause more trouble. What is needed is
improvement of the process, by reduction of variation or by change of level,
or both.
– Dr.Nelson
• Director of statistical methods, Nashua corporation
 The virtuous circle of Quality

Cost decreases Productivity Capture the

Improve quality because of less improves market with
rework, fewer better quality
mistakes, fewer and lower price
delays, snags,
better use of
machine time
and materials
Stay in
business

Provide more
jobs
• Quality is not fine tuning your product at
the final stage of manufacturing
• Quality is in-built into the product at every
stage from conceiving – specification &
design stages to prototyping – testing and
manufacturing stages
 Thinking on variation
• Any instabilities can help to point out specific
times or locations of local problems. Once these
local problems are removed, there is a process
that will continue until somebody changes it.
Changing the process is managements’
responsibility
• “If I had to reduce my message to managers to
just few words, I’d say it all had to do with
reducing variation” He believed that quality and
productivity always increased as variability
decreased.
The Bell Curve
 Demings’ 14 Points
1. Create constancy of purpose toward improvement of
product and service, with the aim to become competitive
and to stay in business, and to provide jobs
2. Adopt the new philosophy. We are in a new economic
age. Western management must awaken to the challenge,
must learn their responsibilities, and take on leadership for
change.
3. Cease dependence on inspection to achieve quality.
Eliminate the need for inspection on a mass basis by
building quality into the product in the first place
4. End the practice of awarding business on the basis of
price tag. Instead minimise total cost. Move towards a
single supplier for any one item, on a long term
relationship of loyalty and trust
5. Improve constantly and forever the system of production
and service, to improve quality and productivity, and thus
constantly decrease costs
 Demings’ 14 Points Contd…
6. Institute training on the job
7. Institute leadership. The aim of supervision should be to
help people and machines and gadgets to do a better
job. Supervision of management is in need of overhaul.
As well as supervision of production workers
8. Drive out fear, so that everyone may work effectively for
the company
9. Break down barriers between departments. People in
research, design, sales and production must work as a
team, to foresee problems of production and in use that
may be encountered with the product or service
10.Eliminate slogans, exhortations, and targets for the work
force asking for zero defects and new levels of
productivity. Such exhortations only create adversarial
relationships, as the bulk of the causes of low quality and
low productivity belong to the system and thus lie
beyond the power of work force.
 Demings’ 14 Points Contd…
11.a Eliminate work standards on the factory floor.
Substitute leadership
b Eliminate management by objective. Eliminate
management by numbers, numerical goals. Substitute
leadership.
12 a Remove barriers that rob the hourly worker of his right
to pride of workmanship. The responsibility of
supervisors must be changed from sheer numbers to
quality
b Remove barriers that rob people in management and
in engineering of their right to pride of workmanship. This
means, inter alia, abolishment of the annual or merit
rating and of management by objective
13. Institute a vigorous program of education and self
improvement
14. Put everybody in the company to work to accomplish
the transformation. Transformation is everybody’s job
Dr. Joseph M Juran
 Ten steps
• Create awareness of the need and the opportunity for quality improvement
• Set goals for continuous improvement
• Build an organisation achieve goals by establishing a quality council,
identifying problems, selecting a project, appointing teams and choosing
facilitators
• Give everyone training
• Carry out projects to solve problems
• Report progress
• Show recognition
• Communicate results
• Keep a record of successes
• Incorporate annual improvements into the company's regular systems and
processes and thereby maintain momentum

• Jurans Trilogy
– Planning
– Control
– Improvement
Prof. Kaoru Ishikawa
1915 - 89
• Known as ‘Father of Quality Circles’
• His ‘Fishbone diagram’ which bears his name
(Ishikawa Diagram) was invented in 1943 as a
management problem solving tool
• He developed the idea of bringing craftsmanship
to groups rather than to individuals
• In his book, What is Total Quality Control?
Ishikawa said that seven basic tools were
indispensable to quality control.
• His quality circles were first piloted at Nippon
Telegraph and Cable Co. in 1962. By 1978,
there were one million quality circles with 10
million people, mostly in manufacturing.
Philip Crossby
 Quotes - Crossby
• Zero defects is the battle cry of defect
prevention. It means ‘do the job right, the
first time, every time’
• It is much less expensive to prevent errors
than to rework, scrap or service them
• Inside every organisation, every employee
has a customer
• There is no substitute to the words ‘Zero
defects’ they are absolutely clear
• Quality is free. It is not a gift, but it is free
TQM
 TQM

• Total – Involves everyone in the

organisation – every function, every
activity
• Quality - Focuses on improving the quality
of all the functions, systems and
processes.
• Management – Actions involved in
applying TQM principles and techniques to
all activities.
Fundamental principles
 Philosophy
1. Customer focus
2. Continuous improvement
3. Management commitment
4. Involvement of all (Including suppliers)
5. Prevention better than cure
6. Internal customer
7. Management by facts
8. Results through processes
 Customer focus
1. Customer expectations are a integral part of
the Quality Planning process.
2. In the TQM approach the entire organisation is
like a satellite revolving around the customer.
All the activities in the organisation have to be
tuned to the customer requirements and
expectations
3. Tools like QFD and Benchmarking, help us in
understanding the customer requirements right
at the beginning
 Continuous improvement

1. Quality is not a end, it is a journey

2. Competitors are continuosly catching up

3. Our goal is ‘zero defects’

4. There are numerous aspects of quality

5. Consumer needs are changing

 Management commitment

1. Total commitment from the top is a must

2. The Japanese revolution was triggered
and fuelled only by total commitment and
involvement from the management
3. It is a journey which requires unwavering
priority to Quality and only top
management can bring that.
 Involvement of all (Including suppliers)

1. Departure from ‘Taylorism’

2. The person on the job knows better than anyone else,

where the shoe pinches

3. Cross Functional Groups are best way to handle

quality improvement

4. Tools – Quality Circles, Brain storming

 Prevention better than cure

• Do it right, the first time, every time, time

after time

• Errors / defects are costly (eg. Die –

casting)
• Wastage of material
• Wastage of capacity
• Wastage of effort
• Lost opportunities
 Internal customer

1. The organisation is like a chain of

processes. One process feeding into the
other.
2. The next process is your customer
3. Output from one process has to be
acceptable for the next process which
should be treated as internal customer
 Management by facts

• Data has to be collected, organised

– No inspection without recording
– No records without analysis
– No analysis without action
• Actions have to guided and supported by
data
 Results through processes
1. The belief of TQM is that processes
produce results
2. Any sustained / sustainable improvements
in the results will come only from changes in
the process
3. The process has to be in control
4. Special causes and Common causes have
to be detected and managed through use of
tools n techniques (eg. 7 QC Tools)
 PROCESS

In control Not in control

In control Desired Not

state acceptable
RESULTS Not Good Partially Not
there acceptable
Need to
work
Tools-n-Techniques
1. Customer focus 1. PDCA
2. Continuous improvement 2. 7 QC Tools
3. Management 3. Quality circles
commitment 4. SQC
4. Involvement of all
5. 6 Sigma
(Including suppliers)
5. Prevention better than 6. Benchmarking
cure 7. Design of Experiments
6. Internal customer 8. Quality Function
7. Management by facts Deployment
8. Management by Process 9. Quality systems – ISO
9000, MBQA
10.Cost of Quality (COQ)
PDCA
 The PDCA cycle

Plan

Do
Act

Check
 2 3

1 1

4 1 2
4
2
3
3
4

The helix. Continue the cycle, over and over, with never-ending
improvement of quality, at lower and lower cost
 7 QC Tools

• Flow charts
• Check sheets
• Pareto diagrams
• Histograms
• Cause and effect diagrams
• Scatter diagrams
• Control charts
Culture
Element Before After
Definition of quality Product specification Customer satisfaction
Emphasis Fix problems Prevent problems
Problems result from Individuals mistakes Management
practices / systems
Quality responsibility QA department Every one
Management climate Fear and finger Continuous
pointing improvement,
innovation
Problem solving is Those in authority Empowered
done by disciplined teams
 The human angle

• Pride in workmanship
• Involvement
• Contribution to the company
goals
• Job satisfaction
In summary
 Effects of poor quality

• Low customer satisfaction

• Low productivity, sales, profit
• High costs
• Low morale of workforce
• Delay in shipping
 Costs of poor quality
• Losses : Scrap, rework, extra cost, reinspection
• Excess inventory
• Overtime for schedule misses
• Material review
• Handling
• Redesign costs
• Tool & Fixture redesign
• Replanning effort
• Replacement expediting
• Excess capacity
 Benefits of quality

• High customer satisfaction

• Reliable products
• Better efficiency
• More productivity
• More profit
• Better morale
• Low costs
• Better quality of life for all
 Quality makes business sense

• Lower costs
– Reduced rejection, rework
• Better prices
– Reliable products command higher price
• Higher market share
– Kill competition
 Economics of Quality

• Quality and price

• Quality and costs
• Quality and market share
• Costs of Quality
– Prevention
– Appraisal
– Failure
• Internal
• External
 Costs of Quality
• Prevention – Costs associated with personnel engaged
in designing, implementing, and maintaining the quality
system, including auditing the system
• Appraisal – Costs associated with measuring measuring,
evaluating, or auditing products, components and
purchased materials to ensure conformance with quality
standards and performance requirements
• Internal failure – Costs associated with defective
products, components and materials that fail to meet
quality requirements and cause manufacturing losses
• External failure – Costs generated by defective products
being shipped to customers
Deming Prize
 Deming Prize - Indian Companies
• Sundaram Brake Linings Ltd. - 2001
• TVS Motor Company - 2002
• Brakes India Ltd. – 2003
• Mahindra & Mahindra Ltd. Farm equipment Sector –
2003
• Rane Brake Linings Ltd. – 2003
• Indo Gulf Fertilisers Ltd. – 2004
• Lucas – TVS Ltd – 2004
• SRF Ltd. – 2004
• Krishna Maruti, Seat Division – 2005
• Rane Engine Valves Ltd. – 2005
• Rane TRW steering Systems Ltd – 2005
• Rane (Madras) Ltd. 2007
• Tata Steel Ltd - 2008
Lets capture the ‘Top of Mind’
 Thanks

Wish you all the best.