Productivity and Quality Management

Question Bank 

What is TQM? State the objectives and benefits of TQM What are Quality management systems? State eight building blocks of TQM  


State 10 steps of TQM
What is TPM and explain TPM awards 14 points of Deming s philosophy 14 points of Crosby s philosophy Explain eight Principles of TQM What is Juran s Triology

Question Bank 

are Quality circles and how do they differ from Kaizen?  What are 5 S practices?  What is BPR? Why is it necessary to initiate this before we start ISO 9000?  What is COQ? How do we bring down the COQ?  What is six sigma?

Question Bank 

Malcolm Baldrige award  what are the Techniques used in TQM  State the factors affecting product and service Quality seperately

Improve Profit  Increase Sales Volume (Increase Market share)  Increase Sale Price  Reduce Purchase cost of Input  Reduce cost of production  Improve quality (Reduce cost of Quality)  Improve productivity .

Productivity and Quality Mgmt Differentiate  Production and Productivity  Inspection and Quality Control  System. Procedures and Processes  Quality Control and Total Quality Mgmt (TQM)  TQM and Six Sigma .

‡ Number of products / No. equipment.Definition (Productivity is a ratio) The amount of output per unit of input (labor. and capital).ProductivityProductivity. of hours taken to produce them ‡ Revenue generated by employee / Salary of employee .

Procedure and Process  System is a set of interactive elements corresponding to the given inputs to produce the desired output is a set of activities which have to follow in a systematic format without taking any shortcuts is a set of activities/operations which follow the procedures and systems with right RM and intermittent checking to avoid any lapses.  Procedure  Process .System.

storage. inspection. delays. transportation and everything else that happens between the beginning and the end of the process .Process  Process is a summation of activities such as operations.

TQM and Zero Defect When a process attains six sigma level it means that there is no room for the product to fail Six sigma is professionalizing of the Quality Management functions . which helps the organization in the improvement of their Quality Six Sigma is a systematical process which helps the organization to eleminate the defects which prevent it from reaching perfection Six Sigma ensures the QC.(The statistical Representation) is a Sigmaprocess of Quality measurement.Six Sigma      Six Sigma.

999943 45500 2700 63 0.9937 99.15% 6 99.999999 8 0.002 Less than 1% .25% 5 .Sigma Level % Good PPM/DP MO Cost of Quality as % of Sales 2 3 4 5 95.45 99.40% 15 .57 Over 40% 25 .73 99.

hospitals. government. TQM has been widely used in manufacturing. as well as NASA space and science programs .What is TQM ?  Total quality management (TQM) is a TQM) business management strategy aimed at embedding awareness of quality in all organizational processes. education. and service industries. call centers.

What is TQM ?  Total Quality Management (TQM) is a structured system for meeting and exceeding customer needs and expectations by creating organization-wide organizationparticipation in the planning and implementation of improvement (continuous and breakthrough) processes .

mission and values to all employees and creating continuous improvement culture   .Total Quality Management  Total: Total: Involve all functions to have customer focus and give reliable delivery of product+service in line with customer s expectations at lowest cost Quality: Quality: Design and manufacture the product+service to achieve zero defect and 100% customer satisfaction Management: Management: Lead to achieve quality for customers by communicating the vision.

understand the processes critical to quality (CTQ)   . Quality Circles. ISO 14000. ISO 9000.Techniques for TQM  Total Employee Involvement : Kaizen. customer satisfaction surveys. SGA. Training Just in Time/ Waste Elemination : TPM. use of 7 QC Tools. Six Sigma. Zero Defect. supplier Partnership Total Quality Control: TQC is applicable to all Control: functions. use of SPC/SQC and PDCA. KBP/BPR.

employees. costeffective. product and service. This means that products must not only meet customer¶s community needs for value.Why TQM ? In a global marketplace a major characteristic that will distinguish those organizations that are successful will be the quality of leadership. innovative. timely. management. work processes. and productive manner . they must be provided in a continuously improving.

7. 4. 2. 6. 8. 5. CustomerCustomer-Focused Organisation Leadership Involvement of People Process Approach System Approach to Management Continual Improvement Factual Approach to Decision Making Mutually Beneficial Supplier Relationships .Principles of TQM 1. 3.

Measure customer satisfaction & act on results. price. Ensure a balanced approach among customers and other stake holders (owners. dependability. Manage customer relationships .Customer Focussed Organization      Understand customer needs and expectations for products. delivery. people. Communicate these needs and expectations throughout the organisation.1. suppliers. local communities and society at large) needs and expectations. etc.

Understand and respond to changes in the external environment. encourage and recognise people's contributions.2. train and coach people. suppliers. Establish a clear vision of the organisation's future. local communities and society at large. Inspire. Establish shared values and ethical role models at all levels of the organisation. people. Build trust and eliminate fear. Leadership             Be proactive and lead by example. and Implement a strategy to achieve these goals and targets. Consider the needs of all stake holders including customers. Promote open and honest communication. Provide people with the required resources and freedom to act with responsibility and accountability. owners. Set challenging goals and targets. Educate. .

Actively seek opportunities to make improvements. and enhance competencies. knowledge and experience. Help people derive satisfaction from their work. Freely share knowledge & experience in teams. . Be innovative in furthering the organisation s objectives. Focus on the creation of value for customers. local communities and society at large. Improve the way of representing the organisation to customers. and Make people enthusiastic and proud to be part of the organisation. Involvement of People         Accept ownership and responsibility to solve problems.3.

consider process steps. equipment. Identify the interfaces of the process with the functions of the organisation. control measures. materials and other resources to achieve the desired result. methods. activities. flows. Establish clear responsibility. Evaluate possible risks. authority. and accountability for managing the process. training needs.4. Process Approach        Define the process to achieve the desired result. consequences and impacts of processes on customers. suppliers and other stake holders of the process. Identify internal and external customers. . Identify and measure the inputs and outputs of the process. suppliers and other stake holders of the process When designing processes. information.

Continually improve the system through measurement and evaluation. . Understand the interdependencies among the processes of the system. Structure the system to achieve the objective in the most efficient way.5. and Estimate the resource requirements and establish resource constraints prior to action. System Approach to Management      Define the system by identifying or developing the processes that affect a given objective.

process re-engineering.and Recognise improvements. reEstablish measures and goals to guide and track improvements. on the methods and tools of continual improvement such as the Plan-Do-Check-Act cycle . Promote prevention based activities. Continual Improvements         Make continual improvement of products. Apply the basic improvement concepts of incremental improvement and breakthrough improvement.6. Use periodic assessments against established criteria of excellence to identify areas for potential improvement. . processes and systems an objective for every individual in the organisation. Continually improve the efficiency and effectiveness of all processes. Provide every member of the organisation with appropriate education and training. and process innovation. problem Plan-Do-Checksolving .

Analyse the data and information using valid methods. Ensure that the data and information are sufficiently accurate. Understand the value of appropriate statistical techniques. and Make decisions and take action based on the results of logical analysis balanced with experience and intuition. . reliable and accessible. Factual Approach to Decision Making      Take measurements and collect data and information relevant to the objective.7.

8. Supplier Relationship        Identify and select key suppliers. and Recognise supplier improvements and achievements. Share information and future plans. Jointly establish a clear understanding of customers' needs. Establish supplier relationships that balance short-term shortgains with long-term considerations for the longorganisation and society at large. . Create clear and open communications. Initiate joint development and improvement of products and processes.

7. 2. 8. 10.Ten Steps to TQM 1. 9. Set company strategy. 5. 3. 6. 4. values and culture Identify the customers and understand their expectations Define their specific needs Build the quality in the process from the begining(advocate prevention & not correction) Reduce chronic waste Reduce variation All levels of the organization must be involved/trained Continually improve the quality of product or service Use structured methodology for process improvement Use a balanced approach .

Objectives of TQM  100%  Zero Customer Satisfaction Defects Improvement Culture  Continuous .

3. 2. 7. 4. Ethics Integrity Trust Training Teamwork Leadership Recognition Communication . 5. 8. 6.Eight Building Blocks of TQM 1.

Benefits of TQM  Ability to be more competitive  Improved market share  Cost reduction  Increased flexibility and responsiveness  Simplified processes  Improved communications  More satisfaction among the workforce .

4. 3. 2. 5. Seiri : separate out needed items Seiton: Seiton: organize workplace for faster retrieval (fix place for each item) Seison: Seison: sweeping/cleaning around work area Seiketsu: Seiketsu: keep everything clean for constant state of readiness Shitsuke: Shitsuke: Everyone must understand and practice the rules in the plant .5 S Practices 1.

Breakdown maintenance (unplanned) 2. Predictive maintenance ( High tech analysis )  Maintenance . Preventive maintenance (planned) 3.Maintenance is done on the equipments to keep them running as efficiently as possible for as long as possible  There are three types of maintenance : 1.

is a scientific company wide approach in which every employee is concerned about the maintenance . developed in Japan.Total Productive Maintenance     TPM . quality and efficiency of the equipment The objective is to reduce the whole life cost of equipment through more efficient maintenance management and to integrate the maintenance and manufacturing functions Teamwork is a key element of TPM Analysis of each equipment focuses on reduction of manufacturing losses and costs .

Total Productive Maintenance  TPM aims to achieve improvements in cost. quality and speed (productivity)  This is equivalent to TQM (reduces variations due to automation)  TPM addresses six big losses reduced yield process defects reduced speed idling and minor stoppages setup and adjustment equipment failure .

the factories which displayed remarkable achievement in plant maintenance were given this award  Effective 1989. the factories which have achieved company-wide efficiency & companyproductivity by adopting company-wide companyTPM are given this award .TPM Awards  Effective 1971.

Autonomous Maintenance (military like) 4. New Equipment Management (design) 3.Five Pillars of TPM 1. Quality Integration (Process capability. Planned Maintenance (reduce unplanned) 5.Cpk) capability2. Equipment Improvement (productivity) .

7. 6. 5. Lack of consistency of purpose Emphasis on short term profits MBO and performance Appraisal system Job hopping by managers Using only visible data for decision making Excessive medical costs Excessive cost of liability .TQM Deming1. 3.Seven Deadly Disasters Dr Deming. 4. 2.

Deming Application Prize  For organizations or divisions of organizations that manage their business autonomously  Given to organizations or divisions of organizations that have achieved distinctive performance improvement through the application of TQM in a designated year .

Deming Wheel  Sales Production I I  Research Design I I  Design Research I I  Production>>>>>>>>>>>SALES <<<<<<<< < .

Create and publish statement of the aims and purpose for improvements Adopt new philosophies Do not depend on inspection for quality End the practice of contract to lowest bidder Continuously improve the system of production and service Institute training on the job Teach and institute leadership . 2. 3. 5.Dr Deming ( 1900-1993) 190014 points 1. 6. 7. 4.

Estimate targets for workforce 11.Dr Deming s 14 points 8. Encourage education and self improvement 14. create trust and climate for innovation 9. 10. Action to accomplish the transformation . Drive out fear. Direct all efforts to aims and purposes of co. Eliminate quotas and institute methods of improvements 12. Eliminate annual rating and merit system 13.

5. 3. 6. Commitment of top Management Quality improvement teams Establish Quality measurement Estimate Cost of quality Spread Quality Awareness Identify opportunities for improvement Committee for Zero defect monitoring . 4.Crosby s 14 steps (Born 1926) 1. 2. 7.

14. Employee education Zero defect day Goal setting Error cause removal Recognition Quality councils Do it all again . 12. 13.Crosby s 14 steps (contd) 8. 9. 11. 10.

prevention quality Performance standard.Crosby s 4 Absolutes of QM philosophy: Do it right the first time The Four absolutes are:  Quality conformance to requirements  System for causing defect standard Measurement of quality.price of nonqualitynonconformance (COQ)  Crosby s .

3. 2.Juran s Philosophy(1904-2008) Philosophy(1904 Quality = fitness for use by the customer Juran s Triology: (Quality oriented Triology: Principles) Quality Planning Quality Control Quality improvement  1. .

Steps of Quality Control  Setting Quality standards conformance to these standards  Apraising  Acting when standards are exceeded for improvements in standards  Planning .

Quality Assurance  Definition : For the customer to buy the product/service with confidence and use it for a long time with ease and satisfaction. the manufacturer has to give assurance and also give evidence that the product will not fail .

Steps of Quality Assurance  Develop quality plans  Carryout vendor quality surveys  Carryout product quality audits  Review disposition of non-conforming nonproducts  Initiate customers future needs  Co-ordinate document control activity Co Upgrade inspection records .

it is an opportunity to improve There is nothing like economics of Quality. the first time The only performance measurement is the cost of Quality The only Performance standard is ZERO DEFECT .it is cheaper to do the job right .Concepts of Quality      Variation is the main reason of poor Quality There is no such thing as Quality Problem.

Cost Of Quality  Prevention Cost  Appraisal Cost  Internal Cost  External Cost and .investment cost Inspection & Analysis Scrap and rework Customer Complaints Product Recalls Returns .

Cost of Quality .

Contribution of Quality Costs  Prevention costs ...initially high.High throughout  Appraisal costs low/same throughout  Internal costs . sharply decline (stability period)  Total Cost . gradually declining  External costs initially high.sharply decline as the product becomes stable .

Economic Balance of Quality and Costs  As we keep improving the Quality. the prevention cost will point. sharply go up and the total cost will also go up  Hence we have to find an economic Balance of Cost and Quality (six sigma) . the Quality. total Cost of Quality keeps coming down  However if we improve the Quality beyond a certain point.

Audit of COQ        Set an annual target of COQ Monitor the actual expenses of COQ All departments to control COQ Evaluate COQ every month/Quarter Compute COQ as a percentage of Sales At the start of TQM activity COQ and COQ as % of Sales is high. but gradually this comes down if TQM is implemented in the scientific manner Revise the annual target of COQ downwards year after year .

Quality. etc Timetable. Railway Timetable. Telephone newspapers.The Customer Delight Customer awareness = keeping customer s requirements in mind These requirements are: Right Quality. . directory. directory.g: e. The customer delight is far beyond customer satisfaction e. Right time & Right Cost Quantity.g: Taxi keeping newspapers. Right Quantity.

Repeat Orders Why customers Quit ?  1% die natural death  3% relocate  5% move away due to friends contact  9% due to competitive reasons  14% poor quality of product  68% indifferent attitude towards customers .

Definition Of TQM  Old Definition of Quality: Quality: Products and services are provided exactly as per the specifications already laid down  New definition of TQM: TQM: Products and services that totally satisfy the customer needs and expectations in every respect. . on a continuous basis respect.

KBP/BPR Just in Time/ Waste Elemination: Elemination: No waiting.Techniques of TQM  Total Employee Involvement : Kaizen. use of 7 QC Tools. material comes in the factory and directly goes for assembly instead of storing in stores Total Quality Control: TQC is applicable to all Control: functions. use of SPC/SQC and PDCA   . Quality Circles. SGA.

Facilitators and other employees Decision Style : Democratic firm decision Vision : Long Term Dream Mission : Short term objectives to achieve vision Quality Policy : Culture to be followed TQM Team Structure : Team Leader.Implementation Process of TQM           Training : Team Leaders. Facilitator Steering Committee : For Pain Areas Shared Leadership : Develop the company objectives collectively Communication : Throughout the organisation Annual Reward Policy : Annual apraisals and recognition to performers .

Elements of TQM              Commitment by senior management and all employees Meeting customer requirements Reducing development cycle times Just In Time/Demand Flow Manufacturing Improvement teams Reducing product and service costs Systems to facilitate improvement Line Management ownership Employee involvement and empowerment Recognition and celebration Challenging quantified goals and benchmarking Focus on processes / improvement plans Specific incorporation in strategic planning .

I leave behind What am I providing for my customers beyond product/service product/ If my business could be everything I dreamed how would it be . what do business. Bill Gates:There will be a personal computer on every desk running microsoft software Vision Statement should answer: answer: Why did I start this business When I move on from this business. 4. 2. 3.Vision Statement   1.

The overall purpose of your business 2. it states why your organization is in business and what you are hoping to achieve  Components of Mission Statement: 1. What is important for your businessbusinessthe values your business lives by  . What is your business: product/service 3.Mission Statement Mission statement describes the WHAT of your business.

Expectations from the Mission Statement  Mission draws on your belief statements  Mission must be future oriented and portray your organization as it will be  Mission must focus on one common purpose  Mission must be specific to the organization. not generic  Mission statement must be short. two sentences max .

poorer the quality  Less the variation better the quality  The analysis of variations ( control charts) give direction for the action to be taken to control the variation .Quality Systems ( Quality Mgmt systems)  The quality of the product is checked to see the variation  The control in variation wrt the design spec/dimension is aimed at  More the variation.

quality verification and records to be kept to demonstrate conformity .quality and delivery requirements.Quality Management System  Quality Plan (Quality Assurance Plan) A Quality plan is a document specifying the quality management system elements and the resources to be applied in a specific case Activities to be considered are: Product spec. how the product/service is created and resources required.

Road Map of Quality Plan         Identify who the customers are Determine the needs of those customers Translate those needs into our language Develop a product that can respond to those needs Optimise the product features so as to meet our needs and customer s needs Optimise the process Prove that the process can produce the product under operating conditions Transfer the process to operation .

ISO 9000 Standards  ISO 9000 is a series of International stds  To be used by the cos. wanting to implement in house quality systems  These stds are developed by international organization for standardization (ISO)  These promote international trade by providing one consistent set of requirements recognized around the world .

ISO 9000 Certificate      Any organization in any business field can make application to the certifying agencies e. BVQI for obtaining ISO 9000 certificate They guide the organization to make the quality manual of inhouse procedures and systems Management representatives are appointed to look after ISO requirements Any deviation is termed as NC and recorded in NCR (non conformity report) which needs to be resolved Then the certifying agency awards ISO 9000 certificate .g.

Quality records 11. Storage. Process control 7.Quality Manual This is an important document and covers the following areas of business: 1. Training 13. Control of non conforming products 9. packing and delivery 10. Internal quality audits 12. Statistical techniques . Inspection and test equipments 8. Product identification and traceability 6. Management responsibility 2. Quality system 3. Contract review 4. Purchasing 5.

Mfg. marketing. installation and services 9002 covers Mfg and Mktg 9003 covers installation and testing  ISO  ISO .ISO 9000 Series  ISO 9001 covers product design.

All organizations have to control the impact of their activities. products and services on the environment Most countries have stringent norms for control on pollution The company has to audit to assess their performance and ensure that it is within limits This system needs to be integrated with overall quality management system of the organization .ISO 14000      ISO 14001-1996 is a part of Quality 14001Management system pertaining to environment management.

QS 9000 (Now known as TS 16949)    QS 9000 issued in 1994 is the name given to the Quality System Requirements of the automotive industry which were developed by Chrysler. It does this by filling gaps in the quality systems that can cause problems QS 9000 tells current and potential customers that the product has consistent quality and is manufactured under controlled conditions. Ford & General Motors and the companies having QSQS-9000 are considered to have higher standards and better quality products. QSQS-9000 helps companies to stay ahead of their competition. .

Thus elevating efficiency and effectiveness of the processes that exist within and across the organization .Business Process Re-engineering Re(BPR) BPR is a management approach aiming at improvements by identifying and implementing new ways of carrying out work.

time reduction.Steps of BPR      Develop the business Vision and process objectives such as cost reduction. output quality imrovement etc. Identify the business processes to be redesigned (challenge old processes) Evaluate old processes to avoid repetition of old mistakes Identify IT levers: awareness of IT capabilities can influence BPR process Design and build new process .

2. The objectives were : To promote awareness of Quality To understand requirements for Performance Excellence Sharing of successful practices with other companies . This annual award was introduced in US in 1987 to recognize US companies for Business Excellence and Quality achievement. 3.Malcolm Baldrige Award  1.

Improve performance practices and capabilities 2.Malcolm Baldrige Award Important Roles: 1. training and assessment 4. Improvement of overall co. Serve as a working tool for managing performance. performance . planning. Sharing of best practices 3.

Strategic Planning 4. Leadership 2. Information and Analysis 3.Malcolm Baldrige Award Award examines the quality of the organization in 7 categories: (100 marks each) 1. Human Resource Development & mgmt 5. Process Management (Improvements) 6. Business Results (Improvements) 7. Customer Focus and Satisfaction .

Steps for Examination Write the application with the overview of co . 3. strategic plans and trends of improvements in last 5 years in all areas of criteria (categories) The application shall be assessed and marks will be given to individual company The site visits shall be made by the examiners to verify the trends and practices .Malcolm Baldrige Award  1. 2. the vision and mission.

4. 3.Product and Service Quality Factors affecting Product Quality 1. 9. 6. 8. 5. 7. 2. Men Materials Machines Manufacturing conditions Manufacturing process Capability to invest money Management commitment to Quality Product design (Tangible and *Intangible) After sales service (*Safety and Reliability) .

3. Quality Tangibility Reliability Responsiveness Communication 6. 8. Security Competence Courtesy Understanding Access . 10. 2.Product and Service Quality Ten Dimensions of Service Quality 1. 9. 4. 7. 5.

Some examples of Service Quality  Answer the phone  Don t overpromise  Listen to your Customers  Deal with Complaints  Be helpful and knowledgeable  Train the staff to be courteous  Take the extra step  Throw in something extra .

they can not be inventoried.Service Quality  Service quality has high level of intangibility  Most services are intangible as there are performances and not objects  Services are perishable . saved and resold later  The actual performance of service differs from provider to provider .

Quality Circles  


QC is a small group of employees working on similar jobs, mostly at worker level to perform quality control and improvement activities within their workplace These groups work on continuous improvements as a part of company wide activity This was started in Japan in 1962 in line with the conviction of Ishikawa that the workers can significantly contribute to improve quality and productivity Japan attributes phenomenal growth in 196019601970 to QC

Quality Circles 

1. 2. 3.

Basic Objectives: Wider contribution towards improvement and development of the enterprise Respecting humanity and building a happy and cheerful workplace Exploiting human capabilities fully and drawing out infinite possibilities

Quality Circles Components of QC
1. 2. 3. 4. 5. 6. 7. 8. 9. 10.

Decide on the theme Establish the goals Clarify reasons and their importance Access the current situation Probe the causes and analyze them Establish corrective measures Implement the measures Evaluate results Standardize to prevent slipups Reflection of the results

Structure of Quality Circle 

management (monitor progress)  Steering committee (Evaluate progress)  Facilitator (eliminate hurdles)  Leader and Dy Leader (guide members)  Members (study cause and effect)  Non members (give additional inputs)

Sequence of TQM  Operational Management 5 S BPR  Quality Management QC ( Quality Circles) ISO TPM ( Total Productive Maintenance) Six Sigma ( For Processes CTQ ) .

Books For Reference  Quality Mgmt Systems Devendra Kumar Bhatt / Aparna Raj  Productivity and Quality Mgmt Shashikant D Aphale Vipul Prakashan .

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