Total Quality

Management

Anubha Maurya

Total Quality Management

A Brief History of Quality
Management
 Historical uses of quality management
include the precision involved in building
of Egyptian pyramids, interchangeable
parts during Industrial Revolution, and
statistical tools used for quality control
during World War II.
 Dr. Joseph Juran and Dr. W. Edwards
Deming were pioneers in the field (more
later on these two quality gurus).
 The Japanese integrated quality ideas and
methods throughout their organizations
and developed a culture of continuous
improvement.
CURRENT DEMANDS FROM ORGANISATIONS

• To understand what customer wants

And to provide it , immediately on demand ,
At lowest cost

• To provide products & services of high quality and

reliability consistently

• To keep up with pace of change , technological as well

as political and social

• To be one step ahead of the customer’s needs ; that is ,

to predict what the customer will want one year or
ten years from now

Customer means internal customer as well

 What is Quality?
Continuous Satisfaction of
Customer Requirements

A ‘Customer-Centric’ View
Quality
 Quantified as
 Q Quantity
 P Performance
 E Expectation

 Q=P/E i.e Q has to be > 1

What is
Quality
Management?
Achievement of Quality
at Low Cost.
QUALITY MANAGEMENT TRIANGLE
COMMITMENT
TO NEVER-ENDING QUALITY IMPROVEMENT

INVOLVEMENT SCIENTIFIC
KNOWLEDGE
What is
Total Quality
Management?
Attainment of
Total Quality
Through Everyone’s
Commitment on a Daily Basis
SO …..
Quality is a state in which value
entitlement is realized for the customer
and provider in every aspect of the
business relationship.

Business quality is highest when the

costs are at the absolute lowest for both
the producer & consumer and is most
readily attained when the entirety of
Understanding Quality
 Quality can be a confusing concept,
partly because people view quality in
relation to differing criteria based on their
individual roles in the value chain, such
as:
 perfection,
 delighting or pleasing the customer,
 eliminating waste,
 doing it right the first time, and/or
 consistency.
Understanding Quality
• Fitness for use is the ability of a
good or service to meet customer
needs.
• Quality of conformance is the
extent to which a process is able to
deliver output that confirms to
design specifications.
• Specifications are targets and
tolerances determined by designers
of goods and services.
Understanding Quality
• Quality Control means ensuring
consistency in processes to achieve
conformance.
• Service Quality is consistently
meeting or exceeding customer
expectations (external focus) and
service delivery system performance
criteria (internal focus) during all
service encounters.
Traditionally Quality has 3 main dimensions

• Performance
• Price
• Promptness

In present context , following more dimensions

should be added to Concern for Quality –

• Global competitiveness
• Concern for environment
• Concern for safety ( for Transport Orgn. )
 QUALITY GURUS ….

JURAN – QUALITY TRILOGY

•QUALITY PLANNING , QUALITY IMPROVEMENT
PROJECTS , QUALITY CONTROL

CROSBY – QUALITY IS FREE

•ZERO DEFECTS , DO IT RIGHT FIRST TIME , ASSIGN
MONEY VALUE TO NON – CONFORMANCE TO
QUALITY

TAGUCHI - LOSS FUNCTION

LOSS TO SOCIETY IS PROPORTIONAL TO SQAURE OF
DEVIATION FROM THE TARGET
Why TQM?
Ford Motor Company had operating losses
of $3.3 billion between 1980 and 1982.
Xerox market share dropped from 93% in
1971 to 40% in 1981.
Attention to quality was seen as a way to
combat the competition.

Total Quality Management

TQM
 Total - made up of the whole
 Quality - degree of excellence a product or service

provides
 Management - act, art or manner of planning,

controlling, directing,….

Therefore, TQM is the art of managing the whole

to achieve excellence.
excellence

Total Quality Management

What does TQM
mean?
Total Quality Management means that
the organization's culture is defined by
and supports the constant attainment of
customer satisfaction through an
integrated system of tools, techniques,
and training. This involves the
continuous improvement of
organizational processes, resulting in
high quality products and services.
Total Quality Management
Six Basic Concept

1- Committed and Involved management

2-Focus on Customer
3-Involvement
4-Continous Improvement
5-Suppliers as partner
6-Est performance measure for process

Total Quality Management

What’s the goal of
TQM?

“Do the right things right the

first time, every time.”

Total Quality Management

Another way to put
it
 At it’s simplest, TQM is all managers
leading and facilitating all contributors in
everyone’s two main objectives:
✔ (1) total client satisfaction through
quality products and services; and
✔ (2) continuous improvements to
processes, systems, people, suppliers,
partners, products, and services.
Total Quality Management
Intangible Benefits of Implementing
TQM
• Image of the organization has improved.
• Reduction in inventory.
• Shorter lead time in design, manufacturing, procurement
service etc.,
• Reduction in rejections and complaints.
• Customer satisfaction.
• Quality cost % to turnover reduction.
• Reduction in deviation.
• Continuous improvement.
• Drastic reduction in defectives and number of defects.
 Scope of TQM
• Commitment by senior management and all employees
• Meeting customer requirements
• Reducing development cycle times
• Just In Time/ Flow Manufacturing
• Improvement teams
• Reducing product and service costs
• Systems to facilitate improvement
• Employee involvement and empowerment
• Recognition and celebration
• Challenging quantified goals and benchmarking
• Focus on processes / improvement plans
Productivity and
TQM
 Traditional view:
• Quality cannot be improved without
significant losses in productivity.

TQM view:
• Improved quality leads to improved
productivity.

Total Quality Management

Old Vs New Culture
Quality Elements Previous TQM

Definition 
Product Oriented
 Cm Oriented

Priorities 
2nd to Service & cost
 First

Decision 
Short term
 Long term
Emphasis  Prevention
 
Detection
Errors
 System
 
Operation
Responsibility 
 Everyone

Quality Control
Problem solving
 Teams

Managers  Life cycle cost

Procurement  Price  Delegate,
 Manager Role  Plan Assign control coach, facilitate
enforce
Total Quality
Management
and Continuous
Improvement
TQM is the management process used to make
continuous improvements to all functions.
 TQM represents an ongoing, continuous
commitment to improvement.
 The foundation of total quality is a management
philosophy that supports meeting customer
requirements through continuous improvement.

Total Quality Management

Continuous
Improvement versus
Traditional Approach
Traditional Approach Continuous
Continuous Improvement
Improvement

Market-share focus 
Customer focus

Individuals 
Cross-functional teams

Focus on ‘who” and “why”  Focus on “what” and “how”

Short-term focus 
Long-term focus

Status quo focus 
Continuous improvement

Product focus 
Process improvement
 Innovation focus

Fire fighting

Incremental improvements
 Problem solving

Total Quality Management

The TQM System
Objective Continuous
Improvement

Principles Customer Process Total

Focus Improvement Involvement

Leadership
Elements Education and Training Supportive structure
Communications Reward and recognition
Measurement

Total Quality Management

OBSTACLES
• Lack of Management Commitment
• Inability to change org culture
• Improper Planning
• Lack of Continuous Training and Education
• Ineffective Measurement technique and
lack of access of data and result
• Paying inadequate attention to Internal and
External customer
• Failure to continually improve
W. Edwards Deming
• Focus on bringing about improvements in
product and service quality by reducing
uncertainty and variability in goods and
services design and associated processes
(the beginning of his ideas in 1920s and
1930s).
• Higher quality leads to higher productivity
and lower costs.
• “14 Points” management philosophy.
• Deming Cycle – Plan, Do, Study, and Act.
W. Edwards Deming 14 Points
Point 1: Create a Vision and Demonstrate
Commitment
Point 2: Learn the Philosophy
Point 3: Understand Inspection
Point 4: Stop Making Decisions Purely on
the Basis of Cost
Point 5: Improve Constantly and Forever
Point 6: Institute Training
Point 7: Institute Leadership
 Chapter 15 Influential Leaders in Quality
Management

W. Edwards Deming 14 Points

Point 8: Drive Out Fear
Point 9: Optimize the Efforts of Teams
Point 10: Eliminate Exhortations
Point 11: Eliminate Numerical Quotas
Point 12: Remove Barriers to Pride in Work
Point 13: Encourage Education and Self-
Improvement
Point 14: Take Action
COST OF QUALITY
 Failure costs -costs caused by defective
parts, products, or faulty services .
Internal -failures discovered during
production (e.g. rework, problems,
material/product losses, downtime) .
External -failures discovered after
delivery (e.g. warranty, returned goods,
liability claims, penalties)
COST OF QUALITY
 Appraisal costs -costs of activities designed
to ensure quality or uncover defects (e.g. in-
line inspection, final inspection, field testing,
crash test dummies, crumpled cars)

Prevention costs -costs of preventing defects
from occurring (e.g. training, working with
vendors, quality control procedures, quality
improvement programs, extra attention in
design and production)
Total Quality
Management

Anubha Maurya

Total Quality Management

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Total Quality Management (TQM) can be seen as a continuously evolved management system, consisting of values, methodologies and tools. The
aim of the system is to increase external and internal customer satisfaction with a reduced amount of resources. It is important to note, that the
techniques and tools in the figure are just examples and not a complete list. In the same way the values may also vary a little between different
organisations and over time. (From Hellsten & Klefsjö, 2000.)
A STRATEGY FOR
PERFORMANCE
EXCELLENCE
 Continuous Improvement

Is the continuous elimination

of waste
 What Does Kaizen
Mean?

KAI + ZEN
To modify, to change Think, make good, make
better

= KAIZEN
Make it easier by studying it, and making the improvement
through elimination of waste.
 Why Kaizen CPI (Continual Performance Improvement)
Process
Improvement Project
• Data Driven Methodology to Magnify Impact of
Implemented
Process Improvement
Savings

• Apply Control Techniques to Eliminate Erosion of

Improvements
Maintenance of
Process
Performance
• Proceduralize/Standardize Improvements for
Improved Maintenance of Critical Process Parameters

Time
CPI Project
Savings CPI Projects Emphasize
Control and Long Term
Maintenance

Kaizen Time Kaizen

Savings
• Use Small Teams to Optimize Process Performance
CPI
by Implementing Incremental Change
• Apply Intellectual Capital of Team Members Intimate
with Process
Kaizen Projects
Emphasize Incremental
Improvements Time
Kaizen
• Total focus on a defined process to create
radical improvement in a short period of
time
• Dramatic improvements in productivity,
quality, delivery, lead-time, set-up time,
space utilization, work in process, workplace
organization

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Continous Process
Improvement

What is Process? – Activity of an
organisation (business / production)

All non conformance can represent
opportunity.

It is the interaction of some combination
of people, material, equipment, method,
measurment
 All process should have one owner
 What is improvement ? –

 Reduce resources (distributed to more people)

 reduce error (typing error, print??)
 meet expectation, (delighting the cm)
 make process safer (fewer accident)
 make the process more satisfying to the person who
is using it. (satisfying worker, eg change of chair)
 The Deming Cycle

• Plan: study current situation

• Do: implement plan on trial basis
• Study: determine if trial is working
correctly
• Act: standardize improvements
PDCA Cycle

P-Identify opportunity (brainstoring, pareto, alarming, complaints)

 P-Analyse the process (Current status, flow chart, 5W1H)


P-Develop the optimal solution (create new process, or
combine different process, modify existing )


D-Implement (Why, how when, who where)


C-Study the result (montior and evaluate)


A-Standardize the solution (Institutionalize, ownership)


A-Plan of the future
Observe the Current
Process
• Crucial first step in process improvement
• Deep understanding of the existing
processes and dependencies
• Identify all the activities currently involved in
developing a new product
• Observe the process first hand
• Flowchart the process
• Take measurements – time, yield, travel
• distance
Identify Value Added (VA), Non-Value Added
Required (NVA-R), and Non-Value Added
• (NVA)
Generally creates more questions than
answers
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Difference b/w Kaizen and
Innovation

 Effect is long term  Effect is Short


Small step pace 
Big Step

Continous 
Intermittent
 Gradual, constant  Abrupt


Everybody 
Champions

Group effort  Individual idea

 Small investment 
Large investment
Focus on
 Value added and Non value added

MUDA refers to seven waste
• The waste of Overproduction ,The waste of
Processing The waste of Time , The waste
of Inventory , The waste of Motion , The
waste of Unacceptable items (defects), The
waste of Movement (transportation)
 Principle of motion handling, material

handling.
 Documentation of SOP

FIVES- Seiko, seition, seiketso, seiso,
shitsuke

Visual Management

JIT
 Poka Yoke


Team Dynamics
FIVE s
 Sorting

Systematic Arrangement

Spic and Span
 Standardization


Self discipline
Introduction
• 5S is a method to improve and sustain workplace
organization
• 5S represents 5 disciplines for maintaining a visual
workplace (visual controls and information
• systems).
These are foundational to continual improvement
and a manufacturing strategy based on "Lean
Manufacturing" (waste removing) concepts.
• Reduces clutter
• Reduces the time it takes to look for tools and
• equipment
“A place for everything and everything in its place”
• Improves how the operation appears to customers –
always be “tour ready”
• Creates pride in the workplace

• Many companies have a standard that any tool

must be able to be found within 60 seconds.
Components and
Implementation
• Elements of 5S
– Sort
– Straighten
– Shine
– Standardize
– Sustain
– Safety

• Visual Factory
• Implementation plan

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Elements of 5S
• Sort
– Remove all unnecessary materials and equipment
• Straighten
– Make it obvious where things belong
• Shine
– Clean everything, inside and out
• Standardize
– Establish policies and procedures to ensure 5S
• Sustain
– Training, daily activities
• Safety (often called “6S” or “5S + 1”)
– A safety commitment in all activities
The Good, Bad and
the Ugly

• First the Bad and the Ugly - Life Without 5S

 Examples – Sort and
Straighten

See the difference?

• Sort - All unneeded tools, parts and supplies are removed from the
• area
Straighten - A place for everything and everything is in its place

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 5S Implementation
1. Begin reviewing your areas for 5S
2. Discuss 5S with each of your groups (brief
group meeting)
3. Red tag sorting process (one time)
4. Brief, simple daily 5S individual activity
(“just look around”)
5. Brief 5S checklist or procedure for each
6. area
Monthly 5S audit beginning __________
• Area Lead plus at least one person from outside that
area
• Post results (I will look for them!)
• Review results with your group
• Take corrective action
56
Red Tag Process
• One-time activity to remove or disposition
• clutter
To be started within two weeks of this
training
1. Identify clutter, unused equipment, etc
2. Fill out and attach red tag
3. Note in red tag log
4. Red tags must be dispositioned within 30
days

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 Visual Control & the Workstation

To Sort To Straighten
Ensure space for each
Eliminate what’s thing, and a thing for
not absolutely each space. No more
necessary searching.

The To Sustain

5S Maintain
continuous effort.
This is a way of
life. To Sweep
To Sanitize Maintain a clean and
orderly space to
Improvement of make problems easily
the workstation. identifiable.
Be organized to Eliminate rejects and
reduce clutter. scrap..
 Visual Control & the Workstation

Ergonomics
•Adapt the workstation to the
employee
- more security
- more comfort
•Reduce waste
- excessive fatigue
- useless efforts and movement
- less physical constraints
JIT
 Based on supplier relation
 It calls for raw material and component to

reach the production operation in small

quantities when they are needed and not
before
 Inventory cost are kept minimum

 Procurement lots are small and deliver is

frequent
JIT goals
 Flexible enterprise;
 Only produce products needed;
 Reducing the inventory in process,
 finished goods and raw materials;
 Reduce costs of manufacturing;
 Creating space in the factory;
 Minor "lead time" in manufacturing;
 Better customer service;
 Less waste;
 Greater return on investment.
Poka Yoke
 Mistake Proofing device

Automatic continous inspection and
abnormility arises feedback is given and
action is taken
 Low cost


Example
 Chapter 15 Quality Management

Poka-Yoke Examples
 Machines have limit switches connected
to warning lights that tell the operator
when parts are positioned improperly on
the machine.
 Fast food restaurants use automated
french-frying machines that can only be
operated one way; the french fries are
prepackaged and the equipment
automated to reduce the chance of
human error.
Introduction
• Mistake proofing and poka yoke is the use of
process or design features to prevent errors
or their negative impact.
• The term Poka yoke is Japanese slang for
“avoiding inadvertent errors” which was
formalized by Shigeo Shingo.
• Inexpensive.
• Very effective.
• Based on simplicity and ingenuity.

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 Background and
History
Shingo suggested a solution that became
the first poka yoke device:
– In the old method, a worker began by taking
two springs out of a large parts box and then
assembled a switch.
– In the new approach, a small dish is placed in
front of the parts box and the worker's first
task is to take two springs out of the box and
place them on the dish. Then the worker
assembles the switch. If any spring remains
on the dish, then the worker knows that he or
she has forgotten to insert it.
– The new procedure completely eliminated the
problem of the missing springs.
Everyday Examples
3.5 inch diskettes cannot be inserted
unless diskette is oriented correctly.
This is as far as a disk can be inserted
upside-down. The beveled corner of
the diskette along with the fact that
the diskette is not square, prohibit
incorrect
Fueling areaorientation.
of car has three error-proofing
devices:
1. insert keeps leaded-fuel nozzle from being
inserted
2. tether does not allow loss of gas cap
3. gas cap has ratchet to signal proper tightness
New
andlawn mowers are required to have a
safety bar on the handle that must be pulled
prevent overtightening.
back in order to start the engine. If you let
go of the safety bar, the mower blade stops
in 3 seconds or less.

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Ex: Whose signature is
required?
Before:

After:

67
 Ten Types of Human
Mistakes
• Forgetfulness
• Misunderstanding
• Wrong identification
• Lack of experience
• Willful (ignoring rules or procedure)
• Inadvertent or sloppiness
• Slowliness
• Lack of standardization
• Surprise (unexpected machine operation,
• etc.)
Intentional (sabotage)
3 Rules of Poka Yoke
• Don’t wait for the perfect poka yoke. Do it
now!
• If your poka yoke idea has better than 50%
chance to succeed…Do it!

• Do it now….improve later!

69
 Think Break

Exercise 1: Wastes
Identification
Identifyo
neexample P
ossib
leca
use P
ropose
d Me
thodo
f
ofea chtypeo
fwaste Ac
tio
n m
easu
rement
belo
w
O
ver
p r
odu
ctio
n

D
ela
ys

T
ran
spo
rta
tio
n

P
roc
ess

In
vento
rie
s

M
otio
ns

D
efec
tiv
epr
odu
cts

Unta
pped
r
esourc
es

M
isu
sedr
eso
urc
es
Statistical Tool
 Check sheet
 Affinity Diagram
 Relations diagrm

Histogram
 Tree Diagrm

Pareto Chart  Matrix Diagrm
 Cause & Effect
 Matrix Data anal

Scatter Diagram  Arrow Diagram

Control Chart  Process decision
 Graph prog chart
 Control tools are born with variability

Cause of variation is cue to chance or
assignable cause
 Variation due to Chance are difficult to

trace and control even under best

condition
 Assignable cause can be traced and

occurs due to difference in workers,

material, machine..
 Chapter 15 Seven Tools of Quality
Management

The “Seven QC Tools”

1. Flowcharts: process mapping to identify the
sequence of activities or flow of materials/
information in a process.
2. Run Charts and Control Charts: a run chart
is a line graph with data plotted over time;
control charts include control limits.
3. Checksheets: simple tools for data
collection, ensure completeness.
4. Histograms: graphically represent
frequency of values within a specified
group.
The Structure of a Control Chart
Exhibit Defective Item Checksheet
15.4

Source: K. Ishikawa, Guide

to Quality Control (Tokyo:
Asian Productivity
Organization, 1982), p. 33.
 Chapter 15 Seven Tools of Quality
Management

The “Seven QC Tools”

5. Pareto Diagrams: separate the vital few
from the trivial many causes; provide
direction for selecting projects for
improvement.
6. Cause-and-Effect Diagrams: represent
chain of relationships; often called a
fishbone diagram.
7. Scatter Diagrams: graphical component
of regression analysis.
Exhibit
15.5
Use of Pareto
Diagrams for
Progressive Analysis

Source: Small Business Guidebook to Quality Management,

Office of the Secretary of Defense, Quality Management
Office, Washington, DC (1988).
Exhibit Cause-and-Effect Diagram for Hospital Emergency
15.6 Admission
TQM:Tools,QFD
Quality Function
Deployment:History
 The concept of QFD was developed in the
early 1970 in Japan.
 Initially, Kobe Shipyard, Mitsubishi Heavy

Industry ltd.introduced this concept.

 Toyota Conceived this idea only in 1977.

 Due to energy crisis and economic

problems, the QFD began to adopted in

the American auto industries in the mid
1980s.
QFD - Q
 A tech or discipline for optimizing the process of developing and
producing new pdt on the basis of customer need
 QFD is a five stage process
-Identifying customer needs or wants. These are usually characteristics directly
attributable to the pdt or service, such as looks, feel, how long it last,
comparison with competition
- These reqt are translated into technical specification called critical with tech
expert
- These technical specification are then turned into end product specifications.
These are called critical path characteristics
- Design the process to deliver the pdt or service i.e hw to turn into design into
reality
- The final stage is to plan the activities necessary to produce the reqd o/p
Quality Function
Deployment:
Introduction

QFD is a systematic and a planning tool
to motivate business to success by
integrating the quality related of products
and customer expectations and
requirements( Voice of Customer)

QFD deploys the voice of customer
through the product’s
design,production,marketing,delivery and
service.
 QFD translates the voice of customer into
engineering or technical characteristics and
finally into design requirements (voice of
engineer)
 This can be deployed through

-Product planning
-Product development
-Process Planning
-Production Planning
-Service Industries.
Benefits of QFD
 QFD was originally intended to reduce start
up costs, but helped the organization to
reduce cycle time of the product.
 QFD meets the customer satisfaction.

 Helps management to plan its resources to

improve the quality of product.

 Early identification of bottlenecks in

technology, and resolving them helps to

release the product into market first.
 Helps to develop a structured format about information gathered on
customer needs, competitive product, and bottlenecks. Even a new
employee can be fit into a particular project.
 Identification of conflicting design requirements results in reduction in
retooling,training,and quality control measures. It reduces cycle time f
product.
 Since inputs are required from marketing,design,engineering and sales,
horizontal communication channels has to be ensured. This Promotes
teamwork resulting in improved efficiency and productivity.
 Organization will have proper documentation system. This acts as a future
database for future design process identification.
Exhibit The House of Quality
6.8
 Chapter 6 Goods and Service Design

Quality Function Deployment (House of

Quality)
• Quality function deployment (QFD) is both
a philosophy and a set of planning and
communication tools that focus on
customer requirements in coordinating the
design, manufacturing, and marketing of
goods or services.
• QFD fosters improved communication and
teamwork among all constituencies in the
design process.
 Chapter 6 Goods and Service Design

The House of Quality

• QFD translates customer wants and needs into
technical requirements of a product or service.
• Building the House of Quality:
 Determine customer requirements through
the voice of the customer (VOC).
 Define technical requirements of the product.
 Determine interrelationships between the
technical requirements.
 The relationship matrix defines what technical
requirements satisfy VOC needs.
 Customer priorities and competitive
evaluation help select which VOC
requirements the product should focus on.
Exhibit Extra
The House of
Quality for
Building a Better
Pizza
Taguchi

• Genichi Taguchi states that instead

of constantly directing effort toward
controlling a process to assure
consistent quality, design the
manufactured good to achieve high
quality despite the variations that
will occur in the production line.
Robust Design and the Taguchi Loss
Function
• Taguchi’s loss function explains the
economic value of reducing variation in
manufacturing.
L(x) = k(x – T)2 [6.1]

where:
L(x) is the monetary value of the loss
associated with deviating from the target,
T;
x is the actual value of the dimension;
Exhibit Nominal-Is-Best Taguchi Loss Function
6.3
Exhibit Traditional Goal Post View of Conforming to
6.2 Specifications
 Chapter 6 Goods and Service Design

Solved Problem
Suppose that the specification on a part is 0.500 ± 0.020 cm. A
detailed analysis of product returns and repairs has discovered
that many failures occur when the actual dimension is near the
extreme of the tolerance range (that is, when the dimensions are
approximately 0.48 or 0.52) and costs $50 for repair.
Thus, in Equation 6.1, the deviation from the target, x – T , is 0.02
and L(x) = $50. Substituting these values, we have:
50 = k(0.02)2
or
k = 50/0.0004 = 125,000
Therefore, the loss function for a single part is L(x) = 125000(x –
T)2.
This means when the deviation is 0.10, the firm can still expect an
average loss per unit of:
L(0.10) = 125,000(0.10)2 = $12.50 per part
 Chapter 6 Goods and Service Design

Solved problem (continued)

Knowing the Taguchi loss function helps designers to
determine appropriate tolerances economically. For
example, suppose that a simple adjustment can be
made at the factory for only $2 to get this dimension
very close to the target.

If we set L(x) = $2 and solve for x – T, we get:

2 = 125000(x – T)2
x – T = 0.004

Therefore, if the dimension is more than 0.004 away

from the target, it is more economical to adjust it at
the factory and the specifications should be set as
0.500 ± 0.004.
Exhibit Nominal-Is-Best Taguchi Loss Function
6.3
Taguchi method

 Approach that focuses on a statistical method

that zeros in rapidly on the variations in a
product that distinguish the bad parts from the
good.

Study all factor that can hamper uniformity
between product and their long run stable
performance and build in safeguards at the
product design stage itself.

In other word robust design

Identify main function, side effect and
failure mode.

Identify control factors and alternatives
 Define data analysis procedure


Predict performance

Conduct the verification experiment and
plan future action
TOMEX
 Integrated approach for managing quality
in order to support the transition to
system management.

Conceptual model
 Step by step following recognised

practise
 FIVE S

OM BPR

QCC

QMS

TPM
QM
TQM
Managing for Quality
The Big Man W. Edwards
Deming
 Ph.D. in Physics
 Western Electric in 1920’s, 30’s.
 WWII taught Quality Control for war effort

Ignored after the war

Japan wanted to learn from the US
• Deming went to help with census
• Started teaching them quality control
• 1951 Deming Prize for high level of achievement in
quality practices

1980 NBC “If Japan Can…Why Can’t We?” US discovers
Exhibit Extra The Deming Cycle

• Plan: study current situation

• Do: implement plan on trial basis
• Study: determine if trial is working
correctly
• Act: standardize improvements
Quality Philosophy
 “A product or service possesses quality if it helps
somebody and enjoys a good and sustainable
market.”
 Variation is the cause of poor quality

 The Process

• Product/service design
• Manufacture/service delivery
• Test
• Sales
• Market surveys
• Redesign and improvement
 Improve Quality
Chain
Reaction Costs decrease because of
less rework, fewer mistakes,
delays, better use of time &
materials
Productivity
Improves

Capture market with

better quality and price

Stay in business

Provide jobs and

more jobs
System of Profound
Knowledge
1. Systems
1. Buying at lowest cost ignores everything else
2. Don’t suboptimize performance of one part at the
expense of total performance
2. Understanding variation
1. Variability is inherent in everything
2. Variation from human behavior hurts quality
3. Theory of Knowledge
1. Experience is not enough. You need a theory
4. Psychology
1. Fear and pay are not motivators
If you don’t get it…
 Systems:
• See symptoms, not causes
• Don’t see effects of one part on the others
 Variability
• See trends where there are none, miss others
 Psychology
• Create cynicism, demoralization, guilt, resentment,
burnout, craziness, and turnover

Theory of Knowledge
• Problems remain unsolved, despite best efforts
Deming’s 14 Points
1. Create a vision and demonstrate commitment
1. Long-term vision
2. Companies purpose is to serve their customers and
employees, not simply for profit
3. Invest in innovation, training, research
4. Improve competitive position
5. Top management is responsible for this
6. Effective leadership begins with commitment
14 Points
2. Learn the New Philosophy
1. Quota-driven, adversarial management won’t work
2. That ignores importance of quality improvement
3. Labor and management have to cooperate to improve
the customers’ satisfaction
4. Keep training people – turnover does exist
3. Understand Inspection
1. Routine inspection – let someone else fix it
2. Increases costs in the end (no rework in services)
3. Inspect your own work and fix it
4. Don’t Buy on the
Cost per Part Basis
• Don’t buy from several for competition
• Increases variability
• Work with suppliers in long-term
relationships
• Improve quality with your suppliers
• Also get volume discounts, fewer setups
• Supplier-customer bond
5. Improve Constantly and
Forever
 Reduce causes of variation

Engage all employees
• How to do jobs more efficiently
• More effectively

Continuous Process Improvement now is
mandatory
6. Institute Training
 People are a valuable resource and want to do a good job
 They need training to know how to do a good job
 Invest in their future
 Training should include tools for
• Diagnosing
• Analyzing
• Solving quality problems
• Identify improvement opportunities
7. Institute
Leadership
 The job of management is leadership, not
supervision.
 If supervisors don’t know the job, they

can’t lead
• Focus on getting product “out the door”

Good supervisors are coaches, not prison
guards
8. Drive Out Fear
 Managers and workers must have mutual
respect, 2 way communication
 Pointing out quality problems and will

everybody will work effectively

9. Optimize the Efforts
of Teams

People have to understand what
customers want

No barrires should be there between
R&D, Sales, Admin, Production….

Team should tackle the problem
10. Eliminate
Exhortations
 Do you work better with a poster on the wall?
 Slogans assume quality problems caused by

people
 Deming thinks the system is responsible for

problems
 Workers demoralized when they cannot fix

defects, and yet are held accountable

 Workers’ attempts to fix problems only cause

more variation
11. Eliminate Numeric
Quotas
 They do not encourage improvement
• If you do improve it, they’ll just raise the quota

Risk of missing quotas
 Once you meet the standard, why try harder?

 Arbitrary (random) goals are demoralizing without

a plan of how you can reach those goals

 Variability in system year-to-year

 Use statistical method to improve quality

12. Remove Barriers
to Pride in
Workmanship
 People are treated like a commodity

Work nights to make up for cut positions

Don’t make your people compete against
each other

Behavior driven by what boss wants, not
Quality
13 Education & Self-
Improvement
 Not job-specific

Many benefits, some specific to job,
others broader

An org not only need good people but
also people who improve with eduction
14. Commitment
from Top
 Accomplish the Transformation

Start the cultural change with top
management

People will be skeptical until they start to
see change
Armand Feigenbaum

Dr. Feigenbaum was a former manager of Manufacturing Operations and Quality
Control at General Electric. He maintained that quality responsibility extends far
beyond the manufacturing department. He said that quality in manufacturing could
not be achieved if the products were poorly designed, inefficiently distributed,
incorrectly marketed and improperly supported at the customer site. Thus
Feigenbaum’s idea that every function within the organization is responsible for
quality was developed and became known as ‘Total Quality Control’.

 Feigenbaum talks about ‘9Ms of Quality’:


Markets
 Money

Management
 Men

Motivation
 Materials

Machines and Mechanization
 Modern Information Methods

Meeting Product requirements


He also originated the concept of ‘cost of quality’ as a means of quantifying
benefits of adopting a total quality management approach.
Kaoru Ishikawa


Ishikawa shaped the Japanese quality movement through his vision and
activities associated with the Union of Japanese Scientists and Engineers
(JUSE). He developed the concept of true and substitute quality
characteristics, the former referring to the customer’s view of product
performance and the latter referring to the producer’s view.

His concept of Quality Control contains six fundamental principles:


Quality first

Consumer orientation

Breaking down the barrier of sectionalism

Utilization of statistical methods

Participatory management

Cross-functional management


Ishikawa has been associated with the development of many quality tools,
primarily the Cause-effect diagram, also called the Fishbone diagram or
the Ishikawa diagram. He also developed the Quality circle concept in the
early 1960s.
Joseph Juran
 Joined Western Electric in 1920s.
 1951 – Quality contol handbook
 Taught quality principles to Japanese in 1950s
• Quality directed by senior management
• Train whole mgt hierarchy in quality
• Strive for evolutionary changes in Quality
• Report progress to executive levels
• Involve the workforce in quality
• Quality part of reward/recognition structure
Difference in Juran
 Not a major cultural shift
• Top management understands money
• Workers understand parts
• Middle management has to translate
 Eliminate defects through statistical study
Views of Quality “Fitness
for Use”
 Quality is related to:
• Product performance that results in customer satisfaction
• Freedom from product deficiencies, which avoids customer
dissatisfaction
 The mission of the firm is to:
• Achieve high design quality
 The mission of each department is to:
• Achieve high conformance quality

• Process have PCI – Budget, expense measurement, cost

reduction (141)
Quality Trilogy
 Quality Planning
• Preparing to meet quality goals, Identify
customer, determine there need, translate
those need into our language, develop a pdt
that can respond those needs and optimize the
pdt feature to meet cm need.
 Quality control
• Meeting quality goals during operations,
Develop a process which is able to produce
pdt, optimise the process
 Quality improvement
• Breaking through to unprecedented levels of
performance, prove that the process can
produce the product under operating
condition and optimize the process
Juran’s Detailed
Program
 Prove the need for improvement
 Identify projects for improvement

 Organize support for the projects

 Diagnose the causes

 Provide remedies for the causes

 Prove remedies are effective under operating

conditions
 Provide control to maintain improvements
Genichi Taguchi


Taguchi delved on the engineering approach to quality. He termed
variation as ‘noise’ and attempted to minimize noise through quality
activities. He proposed the use of optimization theory and techniques,
along with experimental design, with the ultimate focus of minimizing
loss to society.

Taguchi targets design for quality by defining three design levels:
 System design (primary): functional design focussed on pertinent
technology


Parameter design (secondary): means of reducing cost and
improving performance without removing cause of variation

 Tolerance design (tertiary): means of reducing variation by

controlling causes, but at an increased cost


The Taguchi approach to both parameter design and tolerance design
makes use of cost-performance optimization and experimental design
technology.
Shigeo Shingo


Shingo says that statistical based quality control is not conducive
to zero defects. He proposed a poka-yoke system (mistake
proofing) to totally eliminate defects.


The mistake-proofing concept is a human or machine based series
of 100% source inspections, self -checks or successive checks to
detect abnormalities as and when they occur and correct them on
the current unit of production as well as system-wide.

His Zero Quality Control System comprises the following principles:


Use source inspection

Always use 100% source inspection

Minimize time required to carry out corrective actions

Set up poka-yoke devices
Philip Crosby
 Corporate VP for Quality at International
Telephone and Telegraph, ITT for 14 years.
 Quality is Free – 1 million copies sold.

 He talked about 4 absolutes of quality (the

definition, the system, the performance

standard and the measurement)
Philip Crosby
 Quality means conformance to requirements,
not elegance
• Either you meet the requirements or not
• Determine requirements up front, and very carefully
 There is no such thing as a “quality” problem
• There are accounting, mfg, design problems
• Quality originates in those depts., not in QC
 There is no “economics of quality”
Crosby Philosophy
 Only quality cost is non-conformance
• 15-20% of sales on quality costs
• Well-run, it can be 2.5%
• Measure & publicize cost of poor quality
• Provides visible signs of improvement
 Zero Defects
• Do it right the first time, prevent defects, don’t fix
them
• Human errors from lack of attention, because we
assume errors are inevitable
 Chapter 15 Influential Leaders in Quality
Management

Philip B. Crosby
• Wrote Quality is Free in 1979, which brought quality to
the attention of top corporate managers in the U.S.
• Crosby’s Absolutes of Quality Management include:
 Quality means conformance to requirements, not
elegance.
 There is no such thing as a quality problem.
 There is no such thing as the economics of quality;
doing the job right the first time is always cheaper.
 The only performance measurement is the cost of
quality, which is the expense of nonconformance.
 The only performance standard is Zero Defects
(ZD).
Crosbys 14 steps
 Management Commitment
 Q Improvement Team
 Q Measurement
 Cost of Quality
 Q Awareness
 Corrective Action
 Zero defect planning
 Supervisor training

ZD Day
 Goal Setting


Error Cause removal
 Recognition


Quality Council

Do it over again
Six Sigma
• Six Sigma is a business improvement
approach that seeks to find and eliminate
causes of defects and errors in
manufacturing and service processes by
focusing on outputs that are critical to
customers and results in a clear financial
return for the organization.
• Used by companies including Motorola,
Allied Signal, Texas Instruments, and
General Electric.
 Chapter 15 Quality Management

Six Sigma
Defects are any mistakes or errors that are
passed on to the customer (many people
also use the term nonconformance).

Defects per unit (DPU)=Number of defects

discovered
Number of units processed
 Chapter 15 Quality Management

Six Sigma
• The Six Sigma concept characterizes
quality performance by defects per
million opportunities (dpmo),
computed as DPU × 1,000,000
opportunities for error (or, as is
often used in services, errors per
million opportunities – epmo).
 Chapter 15 Quality Management

Six Sigma
• A DPU measure might be lost bags per
customer. However, customers may have
different numbers of bags; thus the number of
opportunities for error is the average number
of bags per customer.
• If the average number of bags per customer is
1.6, and the airline recorded 3 lost bags for
8,000 passengers in one month (note: 12,800
opportunities for error in one month), then
epmo = (3/8,000 DPU) × 1,000,000/1.6 =
234.375
 Chapter 15 Quality Management

Six Sigma’s DMAIC Process

1. Define: identify customers and their
priorities; identify and define a suitable
project; identify CTQs (critical to quality
characteristics).
2. Measure: determine how to measure the
process and how it is performing; identify
key internal processes that influence CTQs
and measure current defects.
3. Analyze: determine likely causes of defects
and understand why defects are generated
by identifying key variables that cause
process variation.
 Chapter 15 Quality Management

Six Sigma’s DMAIC Process

4. Improve: identify means to remove
causes of defects; confirm key
variables; modify the process to stay
within acceptable range.
5. Control: determine how to maintain
improvements; put tools in place to
ensure that key variables remain
within acceptable ranges under the
modified process.
 Why is Six Sigma Important?
Cost of Poorly Performing Processes

σ level DPMO CP3

2 308,537 Not Applicable
3 66,807 25%-40% of sales
4 6,210 15%-25% of sales
5 233 5%-15% of sales
6 3.4 < 1% of sales
Each sigma shift provides a 10% net income improvement
Sigma (σ ) is a measure of “perfection” relating to process performance
capability … the “bigger the better.”
A process operating at a “Six Sigma” level produces only
3.4 defects per million opportunities (DPMO) for a defect. Without
dedication of significant and appropriate attention to a process, most
processes in leading U.S. companies operate at a level between 3 and 4
sigma.
 Six Sigma COPIS Model
Outputs Process Inputs

Customers Suppliers

Steps How does Six Sigma Work?

The Voice of the Customer (VOC) is aggressively sought and rigorously

evaluated and used to determine needed outputs and hence the optimal
process configuration needed to yield those outputs and their necessary
inputs for which the best suppliers are identified and allied with.

From Concept to Market: the Voice of the Customer

 Chapter 15 The GAP Model
The GAP model recognizes that there are several
ways to misspecify and mismanage the creation and
delivery of high levels of quality. These “gaps” are
shown in the model in Exhibit 15.2 and explained
below.
• Gap 1 is the discrepancy between customer
expectations and management perceptions of
those expectations.
• Gap 2 is the discrepancy between management
perceptions of what features constitute a target
level of quality and the task of translating these
perceptions into executable specifications.
Exhibit Gap Model of Quality
15.2
 Chapter 15 The GAP Model
 Gap 3 is the discrepancy between quality
specifications documented in operating and
training manuals and plans and their
implementation.
 Gap 4 is the discrepancy between actual
manufacturing and service delivery system
performance and external communications to
the customers.
 Gap 5 is the difference between the
customer's expectations and perceptions. The
fifth gap depends on the other four.
Exhibit Gap Model of Quality
15.2
Cost of Quality Measurements
The cost of quality refers to the costs
associated with avoiding poor quality or
those incurred as a result of poor quality.
• Prevention costs are those expended to
keep nonconforming goods and services
from being made and reaching the
customer.(planning, organising, training,
admin cost)
• Appraisal costs are those expended on
ascertaining quality levels through
measurement and analysis of data to detect
and correct problems.(reports, audit, pdt
review, q engg cost, maintenance,
 Chapter 15 Quality Management
• Failure costs are costs incurred as a
result of unsatisfactory quality that is
found before delivery of good or service
to the customer ie manufacturing and
ususage of product.ie cost of labour,
material, rework, reprocessing, cost of
replacement, goodwill, loss of sale due
to publicity
• Hidden costs are incurred after poor-
quality goods or services reach the
customer. i.e cost of redesign due to
qulaity , change in manuf process, scrap
not reported, software change cost
ISO 9000
 Chapter 15 Quality Management

ISO 9000:2000
• Quality standards were created in 1987 and
revised in 1994 and 2000 to improve product
quality, improve the quality of operation’s
processes, and provide confidence to
organizations and customers that quality
system requirements are fulfilled.
• Internationally recognized (and sometimes
required to do business in certain countries).
• Standardizes key terms in quality and
provides a set of basic principles for initiating
quality management systems.
ISO 9000
 An international set of standards for quality
management.
 Applicable to a range of organisations from

manufacturing to service industries.

 ISO 9001 applicable to organisations which

design, develop and maintain products.

 ISO 9001 is a generic model of the quality

process that must be instantiated for each

organisation using the standard.
ISO 9001
ISO 9000
certification
 Quality standards and procedures should be
documented in an organisational quality manual.
 An external body may certify that an organisation’s

quality manual conforms to ISO 9000 standards.

 Some customers require suppliers to be ISO 9000

certified although the need for flexibility here is

increasingly recognised.
ISO 9000 and quality
management
ISO 9000
quality models

instantiated as

documents
Organisation Organisation
quality manual quality process

is used to de
velop instantiated as

Project 1 Project 2 Project 3 Project quality

quality plan quality plan quality plan management

Supports
Documentation
standards
 Particularly important - documents are the tangible
manifestation of the software.
 Documentation process standards
• Concerned with how documents should be developed,
validated and maintained.
 Document standards
• Concerned with document contents, structure, and
appearance.
 Document interchange standards
• Concerned with the compatibility of electronic
documents.
Documentation
process
Incorporate
Create Review Re-draft
review
initial draft draft document
comments
Stage 1:
Creation Approved document

Proofread Produce Check

text final draft final draft

Stage 2:
Polishing Approved document

Layout Review Produce Print

text layout print masters copies

Stage 3:
Production
Document
standards
 Document identification standards
• How documents are uniquely identified.
 Document structure standards
• Standard structure for project documents.
 Document presentation standards
• Define fonts and styles, use of logos, etc.

Document update standards
• Define how changes from previous versions
are reflected in a document.
Document
interchange
standards
 Interchange standards allow electronic documents to be
exchanged, mailed, etc.
 Documents are produced using different systems and on
different computers. Even when standard tools are used,
standards are needed to define conventions for their use
e.g. use of style sheets and macros.
 Need for archiving. The lifetime of word processing systems
may be much less than the lifetime of the software being
documented. An archiving standard may be defined to
ensure that the document can be accessed in future.
Quality planning
 A quality plan sets out the desired product
qualities and how these are assessed and
defines the most significant quality attributes.
 The quality plan should define the quality
assessment process.
 It should set out which organisational
standards should be applied and, where
necessary, define new standards to be used.
Quality plans
 Quality plan structure
• Product introduction;
• Product plans;
• Process descriptions;
• Quality goals;
• Risks and risk management.
 Quality plans should be short, succinct
documents
• If they are too long, no-one will read them.
Software quality
attributes
8 QUALITY MANAGEMENT
PRINCIPLES( As per ISO 9000 Standard )
• CUSTOMER FOCUS
• LEADERSHIP
• INVOLVEMENT OF PEOPLE
• PROCESS APPROACH
• SYSTEM APPROACH TO MANAGEMENT
• CONTINUAL IMPROVEMENT
• FACTUAL APPROACH TO DECISION MAKING
• MUTUALLY BENEFICIAL SUPPLIER RELATIONSHIPS
Quality control
 This involves checking the software
development process to ensure that
procedures and standards are being
followed.
 There are two approaches to quality

control
• Quality reviews;
• Automated software assessment and
software measurement.
Quality reviews
 This is the principal method of validating the quality
of a process or of a product.
 A group examines part or all of a process or
system and its documentation to find potential
problems.
 There are different types of review with different
objectives
• Inspections for defect removal (product);
• Reviews for progress assessment (product and
process);
• Quality reviews (product and standards).
Problem Solving
Methodology Phase 1:
Define

Phase 2:
Characterization
Measure

Phase 3:
Breakthrough
Analyze
Strategy

Phase 4:
Improve
Optimization
Phase 5:
Control

Projects are worked through these 5 main

phases of the Six Sigma methodology.
Basic Elements of
Improvement
 Determination – top management must
take Q seriously
 Education – everyone knows the

absolutes
 Implementation – everyone in

management has to understand the

implementation process
Similarities &
Differences
 Quality is imperative for competitiveness

Top management must lead the way

Quality efforts save, not cost, money
 Continuous, never-ending improvement


Importance of understanding the
customer’s needs

Worker / management partnership
Basic Tenets
(belief) of TQM
 1. The customer makes the ultimate
determination of quality.
 2. Top management must provide leadership
and support for all quality initiatives.

3. Preventing variability is the key to
producing high quality.
 4. Quality goals are a moving target, thereby
requiring a commitment toward continuous
improvement.
 5. Improving quality requires the
establishment of effective metrics. We must
speak with data and facts not just opinions.
Total Quality Management
Operation
Management
 Discipline and profession that studies
and practice process of planning,
designing, operating production system
and subsystem
 OM dels with process


Management should be interpreted
broadly to include designing the system
and performing all activites reqd.
Productivity
 Using resources more efficiently thereby
reducing the unit cost of production.
 Org should have strategy to that reflects

mission and defines organsation goal.

Operation Manager
 Design & Planning  Operation & contrl

Product design  Planning
 Capacity planning  Material mgmt

Process design
 Maintenance
 Inventory control
 Facility location
 Scheduling personnel
 Facility design
 Distribution & Logistic
 Job design
 Product Q
Assurance
Tools used in OM
 Forecasting method- Predicting product
demand, Predicting credit card payments,
Predicting material price
 Linear programming- Scheduling

production, Scheduling personnel,

formulating product
 Integer programming – Locating facilities,

scheduling machine
 Heuristic – Scheduling Jobs, Designing
facilities, Designing production process
 Queuing Analysis – Planning capacity,

Configuring & designing process

 Decision Analysis – Planning capacity,

Locating facilities, Selecting new product.

 Simulation – Designing facilities &

processes, Scheduling Operations,

Managing inventories.