Topic : Total Quality Management

Group no. 6th

Subject: OPM Teacher : Muhammad Bilal

Group members:
1. Shahryar Jalil
2. Mubashir Hayat
3. Saifullah
4. Ayesha
5. Asad Rehman
MBA 3.5 4th semester
QUALITY MANAGEMENT:
What is Quality?
Why Quality?
 Cont...

Product complexity:
As systems have become more complex, the
reliability requirements for suppliers of components have become more
stringent.

Higher levels of customer satisfaction:

Higher customers
expectations are getting spawned by increasing competition.
Relatively simpler approaches to quality viz. product inspection for
quality control and incorporation of internal cost of poor quality into
the selling price, might not work for today’s complex market
environment.
 Why is it so Important?
 Meeting Customer Expectations:
Quality is critical to satisfying your customers and
retaining their loyalty so they continue to buy from you in the future.

 Revenue & Profitability:

Quality products make an important contribution
to long-term revenue and profitability. They also enable you to charge and
maintain higher prices.

 Managing A Reputation:
Quality influences your company’s reputation.
The growing importance of social media means that customers and prospects can
easily share both favorable opinions and criticism of your product quality on
forums, product review sites and social networking sites, such as Facebook and
Twitter.
Cont...
Diagnosing Quality Problems:
Cont...
 Efficiency Problem:
In this problem customer is satisfied from the product.
Customer accepts it gleefully but for the manufacturer its an
unacceptable because of an excess of cost or health hazard for
company workers so it is unacceptable for producers.

Process design:
It means how you should process
new design or how to process a design and make it
standardize. Sometimes we have problem in processing and
input.
•Product Design:
 If you cannot improve or design new product and survive with old
product without an improvement and innovation so it means there is a
problem in product design.
For example:
Dentonic or Bio Amla hair oil and shampoo.

Conformance Problem:
Conformance is meeting specification
or industries standards. There is also problems in conformance sometimes.
for examples. USB plugin but not acceptable. (I phone)
Sometimes product doesn’t follow industry standard.
Improvement Strategies:
Repair:
Fixing something broken.
It is short term strategy. You must work on repair.
two levels of application

1. If a customer receives a damage product then FIX IT

(Temporary solution)

2. Eliminate the root cause of problem (Long Term)

Refinement
It means marginally improve your product. e.g milk pack or nestle
fruita vitals packing.
Doing things just a bit quicker, better, easier or with less waste.

Renovate:
 Major break through improvements.
 innovation and technology advancement are the key factors of
in this approach.
 Output may appear to be the same.
 More expensive.
 E.g: Black and white T.V to colour full
REINVENTION
When you make the complete new
solution for the product.
 Thinking process: Current approach will never
statisfy customer requirements.
 A new output (product, services or activity) might be
developed.
 start with the imagination that previous system
doesn’t exist.
FOR EXAMPLE: CAR TO AIROPLANE
Plan-Do-Study-Act (PDSA)
Plan-Do-Study-Act (PDSA)
PDSA is a four step quality model that focuses on
achieving continous improvement…

PLAN:
Recognize or identify an opportunity and plan for a
change.
Analyze the opportunity.
Design the optimal solution.
DO:
 Implement:
Implement the solution you made for the product and
make a prototype for the solution.
STUDY THE RESULT:
Note the result of your
product by applying different experiments on it.
FOR EXAMPLE: Heat, Light, Temperature etc.
In this there is a review of result for success and
needed adaptation.
 ACT:
Standardize the solution:
What product you have
made it must be standardize. Wherever you manufacture your
product it must required the same material and technology, it
should not depend on time, place ,and speed.
 Plan in the future:
How much improvement can we
bring in our product.
For example: Innovation or realiabilty etc.
Evolution of Total Quality Management
Total quality management originated in the industrial sector
of Japan (1954). Since that time the concept has been
developed and can be used for almost all types of
organizations such as schools, motorway maintenance,
hotel management and churches. Nowadays, Total Quality
Management is also used within the e-business sector and it
perceives quality management entirely from the point of
view of the customer. The objective of total quality
management is doing things right the first time over and
over again. This saves the organization the time that is
needed to correct poor work and failed product and service
implementations (such as warranty repairs).
 Total quality management
Total quality management is an
extensive and structured
organization approach that focuses
on continuous improvement of
product and services by using
continuous feed back...
Principles Of Total Quality Management:
1) Focus on customer.
2) Employees involvement.
3) Process centered.
4) Integrated system.
5) Strategic and Systematic approach.
6) Decision making based on facts.
7) Communication.
8) Continuous Improvement.
1) Focus on customer:
When using total quality
management it is of crucial importance to
remember that only customers determine the level
of quality. Whatever efforts are made with respect
to training employees or improving processes, only
customers determine, for example through
evaluation or satisfaction measurement, whether
your efforts have contributed to the continuous
improvement of product quality and services.
2) Employees involvement

Employees are an organization’s internal

customers. Employee involvement in the development
of products or services of an organization largely
determines the quality of these products or services.
Ensure that you have created a culture in which
employees feel they are involved with the organization
and its products and services.
3)Process centered:
Process thinking and process
handling are a fundamental part of total quality
management. Processes are the guiding principle and
people support these processes based on basis
objectives that are linked to the
mission, vision and strategy.
4) Integrated system:

Following principle Process

centred, it is important to have an integrated
organization system that can be modelled for example
ISO 9000 or a company quality system for the
understanding and handling of the quality of the
products or services of an organization.
5) Strategic and systematic approach:

A strategic plan must embrace the

integration and quality development and the development or
services of an organization.
6) Decision-making based on facts:

Decision-making within
the organization must only be based on facts and not
on opinions (emotions and personal interests). Data
should support this decision-making process.
7) Communication:
A communication strategy
must be formulated in such a way that it is in line with
the mission, vision and objectives of the organization.
This strategy comprises the stakeholders, the level
within the organization, the communications
channels, the measurability of effectiveness,
timeliness, etc.
8) Continuous improvement:

By using the right

measuring tools and innovative and creative thinking,
continuous improvement proposals will be initiated
and implemented so that the organization can develop
into a higher level of quality.
Conformance To Specification
Conformance

Specification Conformance Clause

Conformance Testing Testing suite, Testing Tool

Validation Process, Report

Certification Certificate , Brand

Conformance :
Conformance is the degree to which a
good or service meets certain design
standards determined by the
producers.
Conformance Quality:
Producers of goods and
services develop certain benchmarks for products
based on what they think are the needs of their
customers. These benchmarks serve as expectations
against which subsequent goods and services will be
compared once they are produced. If a product closely
matches target specifications, it is said to have
excellent conformance quality.
Cont…
On the other hand, if the product
deviates greatly from the intended design, that
product is said to have poor conformance quality.
Since it is difficult to match target values exactly,
producers allow for tolerances. These tolerances
express how much a product or service can deviate
from the target while still having what is considered to
be an acceptable conformance quality.
 Specification
Requirements

Implementation
Conformance Tests

Test programs

100% ????
non conforming conforming
Example:
Jim is the owner of a shuttle service in
Orlando. Part of his business involves picking up
tourists at the airport and driving them to their
intended destinations. In order to maximize the
number of pickups, Jim wants to ensure that his
shuttles are available at the airport during certain peak
time windows. Jim gives drivers a daily schedule which
tells them what time they should arrive at the airport.
Since unexpected things can happen on the road, Jim
allows for a tolerance of ± 15 minutes.
Cont….
Today, a peak time is 12:35PM. Due to a
lunch rush, one of Jim’s drivers doesn’t arrive at the
airport until 12:47PM. How should this driver’s
conformance quality be rated? Although the driver
missed the target time, he was off by an acceptable
amount of time. Therefore, his conformance quality is
still considered to be good.