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Finish Line & Beyond

Slide 1 This chapter contains introduction


QUALITY of quality and Total Quality
Management (TQM).
Definitions & Dimensions
Planning There are following topics :
Quality Costs Definitions & Dimensions
TQM
History
Planning
Barriers to TQM Quality Costs
TQM
History
Barriers to TQM Implementation

Slide 2 Quality is a very subjective thing.


QUALITY Sometimes it is easily visible,
sometimes you require an expert to
tell the difference. In the given
picture it is easier to tell that a
hygienic burger is of better quality
than non-hygienic samosa made of
spurious raw-material.

Slide 3 There are various definitions of


QUALITY quality given by various authorities
Definitions
ISO 9000: "Degree to which a set of
inherent characteristics fulfills and organizations. Every definition
requirements."
The standard defines requirement as
need or expectation.
gives a unique perspective about
Six Sigma: "Number of defects per
quality.
million opportunities."

Philip B. Crosby: "Conformance to


requirements." The requirements may
not fully represent customer
expectations; Crosby treats this as a
separate problem.

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Slide 4 These definitions talk about quality


QUALITY meeting pre-set criteria. It is all
Definitions about conforming to known
These definitions talk
about conforming to pre
requirements.
set requirements.

Slide 5 Following definitions talk about


QUALITY consumer’s perspective. And a
Definitions
Joseph M. Juran:
Juran: "Fitness
consumer’s top priority is always to
for use." Fitness is defined by get some functionality from the
the customer.
Noriaki Kano and others, product.
present a two-
two-dimensional
model of quality: "must-
"must-be
quality" and "attractive
quality."

Slide 6 Taguchi talks about lack of


QUALITY
variations against set parameters. As
Definitions
Robert Pirsig:
Pirsig: "The result of care." attaining 100% perfection is
Genichi Taguchi, with two definitions:
impossible in real life situations, so
a. "Uniformity around a target value."
Taguchi talks about getting as closer
b. "The loss a product imposes on
society after it is shipped." to perfection as possible. Moreover,
Taguchi harps on the issue of cost to
the society in the long run if there is
bad quality in a product or service.

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Slide 7 The definition by American Society


QUALITY talks about subjectivity of quality.
Definitions
American Society for Quality: For a rural person traveling in a
"A subjective term for which each
person has his or her own definition.
rickety bus can mean comfort, while
In technical usage, quality can have two
meanings:
for the jet-set people an AC taxi will
a. The characteristics of a product or
service that bear on its ability to satisfy
give the bare minimum comfort.
stated or implied needs;
b. A product or service free of
deficiencies."

Slide 8 QUALITY
In totality quality means
Definitions
conformance to pre-set criteria as
Quality of a product or service
refers to the perception of the
well as ability to satisfy the end
degree to which the product or
service meets the customer's
user. If a pen is unable to write then
expectations.
expectations.
the diamond studded on it is of no
Quality has no specific meaning
unless related to a specific
use.
function and/or object. Quality is
a perceptual, conditional and
somewhat subjective attribute.

Slide 9 The top most dimension of quality


QUALITY
is the functionality of a product. For
Dimensions of Quality

Performance: Basic Functional Aspect


example a mixer grinder should be
Features: Can’
Can’t give core benefit
able to grind the hard turmeric,
Aesthetics: Look, finish, etc.
otherwise three speed gear box is of
Reliability: Lineage
no use to the end user.
Durability: Optimum life span

Features are like add on benefits,


like fancy attachments provided
with the mixer grinder.

A pleasant look will always add


value to the product. If the mixer is
from USHA or PHILIPS then it will
help the customer in buying

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decision.

Slide 10 Take the example of Maruti service


QUALITY
Dimensions of Quality
centre advt which talks about the
Serviceability: Ease of getting serviced
possibility of finding one in the
Safety: Air Bags
User-
User-friendliness: Windows Vs Linux remotest corner of India.
Customizability: Lens attachment Nikon
Environmental-
Environmental-friendliness

The product should be safe and can


be handled with kid’s globes.
Popularity of Windows over other
operating systems is a good example
of user friendliness winning over
customers.

Apple i-Pod has options of changing


skin which is ideal for the target
group.
Slide 11 Planning quality starts with setting
quantifiable and measurable targets.
QUALITY
Quality Planning While doing this the organization
1. Set quality objectives and
targets
needs to keep customer’s wants in
2. Take into account mind. Once the quality objective is
customer’
customer’s wants
3. Plan about marketability of
decided it is important to think
the products. about the market feasibility of the
product.

TATA Nano can prove if Ratan Tata


was wrong or right when he planned
for the people’s car of India.

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Slide 12 Once everything is planned the


organization needs to asses its
QUALITY
Quality Planning capability to deliver the target
quality. If there is gap in capability
Carry out pre-
pre-production
process capability or quality then the organization needs to fill
deliverability studies. that gap by upgrading to the
required technology and skill sets.

Before planning for Chandrayan


ISRO must have thought about its
capabilities to build and deliver such
a spacecraft.

Slide 13 A ranking chart should be developed


QUALITY to finalize the most important aspect
Quality Planning
of quality planning and more focus
Establish the relative importance
of the quality characteristics and
should be given to that aspect.
Specifications.
Specifications.

Communicate to the production


Communicating the target and plan
line people and vendors supplying to frontline people is important
the raw materials.
because they are the people who
will implement everything in the
real life situation. They should be
properly convinced before starting
the new course.

Slide 14 Plan to monitor the progress of


QUALITY quality programme is important.
Quality Planning
Establish statistical control This can be done by devising ways
techniques,
techniques, charts and and means to monitor progress and
sampling plans.
finding deviations.
Establish training
programmes.
programmes.

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Slide 15 The ultimate goal of an organization


QUALITY
is to earn profits. So keeping the
Costs of Quality: cost at minimum possible level is
Maintaining the quality at
least possible cost.
important. Otherwise the higher
input cost may not permit the
ultimate aim of the organization.

Slide 16 Cost of quality involves following


QUALITY aspects:
Costs of Quality: 1. Cost of Appraisal
Cost of
2. Cost of Prevention
Appraisal
3. Cost of Failure
Cost of Cost of
Prevention Failure

Slide 17 This is about assessing the current


QUALITY situation. This will involve manhour
Costs of Quality:
Costs of Appraisal: and resources.
Inspection,
Testing,
Monitoring
Control

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Slide 18 Prevention requires manhour as


QUALITY personnel need to be deployed to
Costs of Prevention: inspect the raw material and
Prevent bad quality output. finished goods.
Plan Precautions
Prevent Bad Raw Material
Prevent Wrong Sampling

Slide 19 Cost of failure needs to be planned


QUALITY out in advance as no matter how
Costs of failure: much precautions are taken failures
are part of life.
Rejects, rework, spoilage,

Customer complaints

Product service

Slide 20 QUALITY The comparative analysis of cost of


Analysis of Costs of Quality
quality can give an idea about where
Category to category
comparison:
to focus more to improve further.
Comparing the relative amounts
spent on each of the above
mentioned cost categories.
Time to time comparison:
Comparing one quarter’
quarter’s
operations with the previous
quarter’
quarter’s operations.

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Slide 21
QUALITY
Base for Analysing Costs of
Quality
 Number of units produced in a
time period
 Net sales for that period
 Total direct labour costs for
that period
 Value added (net sales minus
the direct material cost)

Slide 22 Total means 100%, so TQM is about


QUALITY managing all aspects of quality and
Total Quality Management ultimate goal should be the ‘Total
Objective:
Total customer satisfaction
Customer Satisfaction’.
Totality of functions
Every functional area should stick to
Total range of products and
services
the quality plan of the organization
and strive to attain the planned
quality target.

Each offering from the organization


should be of optimum quality.
Because one rotten apple can spoil
the whole basket.

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Slide 23 TQM is about addressing all aspects


QUALITY of dimensions of quality. If there is
Total Quality Management
Addressing all aspects of dimensions of a good product in bad packaging it
quality
is not going to give the desired
Addressing the quality aspect in
everything – products, services, returns to the organization. A good
processes, people, resources and
interactions. car with a bad bumper will tarnish
Satisfying all customers – internal as well the image of the company.
as external

An ill tempered receptionist can turn


away potential customers from a
nice 5-star hotel.

A satisfied employee will always


bring a satisfied customer, so
internal customers are also
important.
Slide 24 Retaining internal customer is
QUALITY
Total Quality Management
important for better knowledge
Addressing the total organizational
management and continuity of the
issue of retaining customers and

Improving profits,
profits, as well as generating
process. Retaining external
new business for the future.
customer is important to get repeat
Involving everyone in the organization
in the attainment of the said
objective.
sales.
Demanding total commitment from all
in the organization towards the
achievement of the objective. Everybody, right from the shopfloor
employee to the top management,
should have total commitment to the
predetermined quality goals.

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Slide 25 Think about quality concept which a


QUALITY road side trinket seller may be
HISTORY
Effect of Industrialisation on workmanship

having.
•W.A. Shewart (1924) Statistical charts for Bell
Tele

•H. F. Dodge & H.G. Roming:


Roming: Acceptance
sampling as a substitute for 100% inspection in
Think about the quality concept
Bell.

•1946 American Society for Quality Control


your neighbourhood barber may be
formed later changed to American Society for
Quality
having.
•1960s Japanese management started quality
control circles.

Think about the quality concept


which the nearby Domino’s may be
having.

One can get every bit of history in a


wonderful country like India.
Slide 26 If the top management takes quality
QUALITY as a form of window dressing then
Barriers to TQM
Implementation the organization is not going to
Lack of Management Commitment
attain the desired goal.
Inability to Change Culture
It is difficult but important to
Improper Planning
change the culture of the
Lack of Continuous Training
organization. Paradigm change is
needed to force people to strive for
the new quality goal.

As quality is a continuous and never


ending process, so is the training.

Slide 27 People should not live in silos. They


QUALITY
Barriers to TQM Implementation
should come out to facilitate better
Incompatible Organizational Structure interactions to share knowledge.
Isolated Individuals and departments

Ineffective Measurement Techniques

Lack of Access to Data


People should be empowered to sort
Inadequate Attention to External & Internal
Customers
out issues. This will reduce the
Inadequate Empowerment and Teamwork throughput time. Obviously
Failure to Continually Improve
accountability is important along
with empowerment.

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Finish Line & Beyond

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