TOTAL QUALITY MANAGEMENT-unit 1
TOTAL QUALITY MANAGEMENT-unit 1
Dr.GOWTHAMI T
QUALITY
Quality has been the most exploited word but at the same time most mis-understood word.
Quality is an off shoot of the work we do. It is a bi-product of an act. It shows the level of
commitment in doing our activity.
Examples such as: High quality at low price, Quality Hawaii chappal, High class quality
etc., are being mentioned.
Definition: The Quality is defined in many ways:
Quality is Excellence: When quality is defined as excellence, it loses its measurability. Each
person understands to the level of his own excellence and involves in his work. It is often
misunderstood that high cost is high quality. Judgmental in nature. Ex. (Rolex watches, BMW
automobiles).
Quality is Value: With this definition the performance and features or the usefulness of the
products are compared to only the cost of price of the product. Many a times the utility/ possession
value is more than the value of the product. Ex: the features of the product are compared to the
cost of the product.
Quality is Conformance to Requirements: This definition has a manufacturing orientation. It
requires that the customer gives the specification and the products are manufactured to that
requirement.
Quality is degree to which the inherent capabilities of the product satisfy (implicit and
explicit) Requirements (Customer driven).
Good quality of goods and services can provide an organization with competitive edge.
Good quality reduces costs due to product returns, rework and scrap.
Good quality increases productivity, profits and other measures of success such as
brand image, product image and company goodwill.
Most importantly, good quality generates satisfied customers today and tomorrow.
Good quality creates an atmosphere for high employee morale, which improves
productivity.
Evolution of Quality
Before the
concepts and ideas
of TQM were
formalized, much
work had taken
place over the
centuries to reach
this stage. This
section charts the
evolution, from
inspection through
to the present day
concepts of total
quality.
From inspection to total quality
Inspection
Inspection involves measuring, examining, and testing products, process and services
against specified requirements to determine conformity. In the late Middle Ages, special measures
were taken to inspect the work of apprentices and journeymen in order to guard the Guild against
claims of makeshift or shoddy work.
During the early years of manufacturing, inspection was used to decide whether a worker’s
job or a product met the requirements; therefore, acceptable. It was not done in a systematic way,
but worked well when the volume of production was reasonably low. However, as organisations
became larger, the need for more effective operations became apparent.
In 1911, Frederick W. Taylor helped to satisfy this need. He published ‘The Principles of
Scientific Management’ which provided a framework for the effective use of people in industrial
organisations. One of Taylor’s concepts was clearly defined tasks performed under standard
conditions. Inspection was one of these tasks and
was intended to ensure that no faulty product left the factory or workshop;
focuses on the product and the detection of problems in the product;
involves testing every item to ensure that it complies with product specifications;
is carried out at the end of the production process; and relies on specially trained inspectors.
More technical problems occurred, requiring specialised skills, often not possessed by
production workers
The inspectors lacked training
Inspectors were ordered to accept defective goods, to increase output
Skilled workers were promoted into other roles, leaving less skilled workers to
perform the operational jobs, such as manufacturing
This movement led to the emergence of a separate inspection department. An important
new idea that emerged from this new department was defect prevention, which led to
quality control.
Quality Control and Statistical Theory
Quality Control was introduced to detect and fix problems along the production line to prevent the
production of faulty products. Statistical theory played an important role in this area. In the 1920s, Dr W.
Shewhart developed the application of statistical methods to the management of quality. He made the first
modern control chart and demonstrated that variation in the production process leads to variation in product.
Therefore, eliminating variation in the process leads to a good standard of end products.
Statistical Quality Control:
focuses on product and the detection and control of quality problems;
involves testing samples and statistically infers compliance of all products;
is carried out at stages through the production process; and
relies on trained production personnel and quality control professionals.
Shewart’s work was later developed by Deming, Dodge and Roming. However, manufacturing
companies did not fully utilise these techniques until the late 1940s.
Quality in Japan
In the 1940s, Japanese products were perceived as cheap, shoddy imitations. Japanese industrial
leaders recognised this problem and aimed to produce innovative high quality products. They
invited a few quality gurus, such as Deming, Juran, and Feigenbaum to learn how to achieve this
aim.
In the 1950s, quality control and management developed quickly and became a main theme of
Japanese management. The idea of quality did not stop at the management level. Quality circles
started in the early 60s. A quality circle is a volunteer group of workers who meet and discuss
issues to improve any aspects of workplace, and make presentations to management with their
ideas.
A by-product of quality circles was employee motivation . Workers felt that they were
involved and heard. Another by-product was the idea of improving not only quality of the products,
but also every aspect of organisational issues. This probably was the start of the idea, total quality.
Quality culture:
Quality culture is an environment where team members genuinely care about the quality of
their works and make decisions based a set of group values that guide how improvements are made to
everyday working practices and consequent outputs.
The term ‘total quality’ was used for the first time in a paper by Feigenbaum at the first
international conference on quality control in Tokyo in 1969. The term referred to wider issues
within an organisation.
Ishikawa also discussed ‘total quality control’ in Japan, which is different from the western idea
of total quality. According to his explanation, it means ‘company-wide quality control’ that
involves all employees, from top management to the workers, in quality control.
Total Quality Management
In the 1980s to the 1990s, a new phase of quality control and management began. This became
known as Total Quality Management (TQM). Having observed Japan’s success of employing
quality issues, western companies started to introduce their own quality initiatives. TQM, developed
as a catchall phrase for the broad spectrum of quality-focused strategies, programmes and techniques
during this period, became the centre of focus for the western quality movement.
Historical Review (Evolution in short-chronological order )
In the middle ages the concept of quality in the individuals was instilled by long hours
of on the job training. The manufacturer would act as the inspector. The concept of
business was in the barter system. Even now we see such skilled craftsmen like
carpenters, idol makers and others, who make their own product and inspect it.
In the early 20th century, the work of F.W.Taylor, known as the father of scientific
management, led to a new philosophy of separating planning function from execution
function. During this phase the total work was segmented into specific work tasks for
focusing on increased efficiency. The quality assurance of the items/products produced
fell into the hands of the inspectors. During manufacturing, defects were present but were
removed by inspectors before passing it on to the next stage or to the customer.
Eventually organizations formed separate quality departments to pass materials produced.
This worked during that period because of lack of skill and education of the workers.
Later on it led to a lot of indifference to quality among production workers thinking that
quality personnel were responsible for quality goods produced.
o During this period Henry Ford had identified lot of best practices of Total
Quality and put it in a book called “My Life and Work”, which people in Ford
came to know later when they visited Japan to learn best practices.
o During 1920s in the Bell Telephone Laboratories, a team led by Walter Shewart,
developed the control chart, which became a popular means of identifying quality
problems in production processes and ensuring consistency of output.
o During the Second World War sampling tables (MIL STD) were developed for
sampling inspection.
During the early 40s and 50s the shortage of civilian goods made production a top
priority. Quality was not a priority of top managers and remained the domain of the
specialist managers. Edward Deming learned statistical quality control from Shewart and
propagated the same to Japanese along with Joseph Juran.
During late 1970s and 1980s US managers were making frequent trips to Japan to see
the miracle in Japan on Quality issues.
During late 1980s automotive industry in US began to emphasize SPC. Suppliers and their
suppliers were required to use these techniques. Genechi Taguchi introduced his concepts
of parameter and tolerance design and brought a resurgence of design of experiments.
The 1990s ISO 9000 became the worldwide model for quality management system.
Dimensions of Quality
Manufacturing Quality
Dimensions
Reliability Aesthetics
Durability Reputation
Performance Service Response
Features
Conformance
The service sector grew rapidly in the second half of the twentieth century. A service might
be as simple as handling a complaint or as complex as getting a housing loan. The service sector
began to recognise the importance of quality several years after manufacturing had done so. This
lag can be attributed to the fact that service industry had not confronted the same aggressive
foreign competition that manufacturing faced. Another factor is the high turnover rate in service
industry jobs. Constantly changing personnel makes establishment of a continual improvement
process more difficult.
Intangibility: inability to assess the value gained from engaging in an activity using any
tangible evidence
Perish-ability: capacity cannot be stored for sale in the future.
Inseparability: renders it impossible to divorce the supply or production of the service
from its consumption.
Variability: Differences in service in terms of time and person.
Dimensions of Service Quality:
Five key dimensions of service quality contribute to customer perceptions:
Reliability: The ability to provide what was promised, dependably and accurately. Ex:
providing error free invoices, making repairs correctly first time.
Assurance: The knowledge and courtesy of employees, and their ability to convey trust
and confidence. Ex: ability to answer questions, having capability to do the necessary
work, avoiding possible fraud with the system of operations.
Tangibles: The physical facilities of the equipment, and the appearance of personnel.
Attractive front office, well dressed employees, well designed forms etc.
Empathy: The degree of caring and individual attention provided by the customers. Ex:
willingness to schedule deliveries at the customer’s convenience, explaining technical
jargon in a layman’s language.
Responsiveness: The willingness to help customers and provide prompt service. Ex:
acting quickly to resolve problems, promptly crediting returned materials.
Improving Service Quality
Customer service is the set of activities an organization uses to win and retain customers’
satisfaction. It can be provided before, during, or after the sale of the product or exist on its own.
Elements of customer service are:
Organization:
To ensure the same level of quality of service for all customers, organization must record
and communicate to its employees the directions for all tasks. A service quality handbook has to be
prepared.
Communicating it to all employees would be through formal training, videos, personal
coaching, or meetings. The organization shall take into consideration the following
1. Identify each market segment they are serving.
2. Write down the requirements.
3. Communicate the requirements
4. Organise processes
5. Organise physical spaces.
Customer Care:
The organization should revolve around the customer, because customers are the key to the
business. The issues under customer care are:
1. Meet the customers’ expectations
2. Get the customer’s point of view.
3. Deliver what is promised
4. Make the customer feel valued.
5. Respond to all complaints
6. Over-respond to the customer
7. Provide a clean and comfortable customer reception area.
Communication:
The organization should be in communication with its customers matching with its level of
service quality. A customer will be dissatisfied if what is advertised and what is delivered are not the
same.
Under communication organizations need to
1. Optimize the trade-off between time and personal attention.
2. Minimize the number of contact points
3. Provide pleasant, knowledgeable, and enthusiastic employees.
4. Write documents in customer-friendly language.
Quality Planning
Before offering any product/service to the market, organizations need to plan upfront, about the
level of quality, the features and the services they are going to offer in the market. They need to
decide the customer segment they are going to serve with the products which they are making.
The steps for quality planning are as follows:
Identify who are the customers: If a company is making a car, it has to decide which
segment of the society it is going to serve. Appropriately requirements have to be met.
Determine the customer needs: An in-depth survey and detailed analysis has to be
done to know the requirements of the customer. Customers may ask for an
automobile but their actual need to be collected to know whether they are giving
value for aesthetics or reliability.
Translate the needs into language: Once requirements are noted, then the data has to
be analyzed to know the pattern or trend. Accordingly, the features and performance of
the product have to be defined.
Develop a product to meet the needs: Once requirements have been translated to
needs and parameters, a prototype need to be produced.
Optimize the product so as to meet the company’s as well as the customers’ needs:
Matching the customers’ requirement with the organizations capability to produce, it
could be decided what features need to be added to the product and how the same could
be manufactured. This is done in an organized process by making use of advanced tools
and techniques, such as Quality Function Deployment and Failure Mode Effect Analysis.
Develop the Process to produce the product: At this stage the knowledge and
record in the earlier step is transferred to technical requirements and the machinery
and processes need to produce are added to the organization.
Optimize the Process: The process has to be fine tuned to optimize the working
condition in order to minimize wastage and delay.
Prove the processes can a make the product under optimal conditions: Produce
products in the setup to ensure that the setting of the process results in cost effective
products and improves efficiency of operation.
1. Understand customer needs and expectations for products, delivery, price, dependability,
etc.
2. Ensure a balanced approach among customers and other stake holders (owners, people,
suppliers, local communities and society at large) needs and expectations.
3. Communicate these needs and expectations throughout the organisation.
4. Measure customer satisfaction & act on results, and
5. Manage customer relationships.
Principle 2 - Leadership
"Leaders establish unity of purpose and direction of the organisation. They should
create and maintain the internal environment in which people can become fully involved in
achieving the organisation's objectives."
5. Establish shared values and ethical role models at all levels of the organisation.
6. Build trust and eliminate fear.
7. Provide people with the required resources and freedom to act with responsibility
and accountability.
8. Inspire, encourage and recognise people's contributions.
9. Promote open and honest communication.
10. Educate, train and coach people.
11. Set challenging goals and targets, and
12. Implement a strategy to achieve these goals and targets.
TQM FRAMEWORK
TQM has evolved over a period of time through practice and the contribution of principles by
various gurus.
TOOLS AND TECHNIQUES OF TQM :
Benchmarking :
Benchmarking is not simply about what we want to achieve - the benchmarks or the
measurements of best performance, but also how they are achieved i.e. processes in action. Thus,
benchmarking is an ongoing task at all levels of business of finding and implementing the world’s
best practices in the key things that are done to deliver customer satisfaction.
The benchmarking process consists of the following three elements or components:
i)Analysis: breaking down an issue into components
ii) Comparison: component-by-component comparison to find gaps or
differences.
iii) Synthesis: Recombination of components with ideas stimulated from the
differences.
Based on the objects to be benchmarked, benchmarking has been classified into four categories.
These categories are as follows:
• Product Benchmarking
• Performance Benchmarking
• Process Benchmarking
• Strategic Benchmarking
Six Sigma
Six Sigma is a quality management methodology that uses tools and methodologies to
improve business processes by reducing errors and defects, and increasing quality and
efficiency. The goal of Six Sigma is to achieve a level of quality that is almost perfect.
Motorola trademarked Six Sigma in 1993, and it quickly became a widely adopted
standard. The approach spread to other companies after Motorola University began offering Six
Sigma courses to external audiences, including General Electric in 1995.
Improved quality
Employee participation
Team work
Working relationship
Customer satisfaction
Employee satisfaction.
Increased productivity
Communication]
Profitability
Increased market share
Barriers to TQM Implementation
11. Ineffective measurement techniques and lack of access to data and results
QUALITY GURUS
Here are some of the most well-known quality gurus in Total Quality Management (TQM):
1. W. Edwards Deming: Known for his 14 Points for Management and the Plan-Do-Check-Act
(PDCA) cycle.
2. Joseph Juran: Developed the Juran Trilogy (Quality Planning, Quality Control, and Quality
Improvement) and the concept of the "Pareto Principle".
3. Philip Crosby: Introduced the concept of "Zero Defects" and the "Absolutes of Quality
Management".
4. Kaoru Ishikawa: Developed the Fishbone Diagram (Ishikawa Diagram) and emphasized the
importance of employee involvement.
5. Armand Feigenbaum: Introduced the concept of "Total Quality Control" and the "Three Steps to
Quality".
6. Genichi Taguchi: Developed the Taguchi Methods for quality improvement and robust design.
7. Shigeo Shingo: Developed the Single-Minute Exchange of Dies (SMED) method and emphasized
the importance of continuous improvement.
These quality gurus have contributed significantly to the development of TQM principles
and practices, which have been widely adopted across various industries.
*********************************************************************************