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MMZG 522 Total Quality

Management
Rajiv Gupta
BITS Pilani
August 2014
Lecture 1

Session 1
Module 1
Introduction to Dr. Rajiv Gupta, faculty for MMZG 522
Introduction to the course and guidelines to the course

Module 2
Understanding Quality

Module 3
Total Quality Management

Module 4
Quality Gurus

Module 5
Summary

Session 1
Begin Module 1
Introduction to Dr. Rajiv Gupta, faculty for
MMZG 538
Introduction to the course and guidelines for
the course

Dr. Rajiv Gupta


Education:
B.Tech. M.E. I.I.T. Delhi
M.S. I.E. North Carolina State University
Ph.D. I.E. Purdue University
Taught at The State University of New York at
Buffalo, General Motors Institute, and the University of
Michigan, Dearborn in the U.S.
S.P. Jain Institute in Singapore and Dubai, FORE School of
Management, School of Inspired Leadership and BITS,
Pilani
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Worked at Mahindra Logistics as Head of Solution


Design and Automotive Operations
Started and ran own Consulting Company as an
International Associate of Tompkins Associate of
Raleigh, North Carolina

Course Outline
We will cover the topics related to Total Quality
Management
Text book: Total Quality Management, 3rd ed. By
Dale Besterfield, et. al., 2011
Method of instruction: Taped lectures, live online recitation sessions. In addition there will be
additional taped material that will be available
Neither the text book, nor the lecture notes, nor
the lectures substitute for each other. You need
all three to learn about the subject.
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It is the responsibility of the student to watch the


taped lectures, attend the recitations (or watch
taped), read the relevant chapters from the book
and other material that is made available.
For any questions, doubts pertaining to the
subject matter, please send me an email at
gupta.rm@wilp.bits-pilani.ac.in. For all
administrative questions, please call or write the
WILPD office at BITS Pilani. If you do not get a
satisfactory response please let me know.
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Assessment: There will be 2 exams and 2


on-line quizzes. The point breakdown will
be as follows:
Mid-term exam (closed book) 35%
Final exam (open book) 50%
2 on-line quizzes (open) 15%

I expect you to keep regular with the


material covered in class and with the
readings as assigned. This is your
responsibility.

Session 1
End of module 1

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Session 1
Begin Module 2
Understanding Quality

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Quality

What is quality?
Who determines what is quality?
Who is responsible for quality?
How has quality evolved?

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Definition of Quality
Quality is the totality of features and
characteristics of a product or service that bear
on its ability to satisfy stated or implied needs
now and in the future. (From: ANSI/ASQC A31987 Quality Systems Terminology)
Quality = Customer Satisfaction and
Loyalty; Customer Focused.

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Definition of Quality
Quality= Q = P/E
Q = Performance/Expectations
Quality has two sides:
- Objective quality that can be measured
easily (by physical instruments).
- Subjective quality depends upon each
individuals perception. (Quality is a
subjective term for which each person
has his or her own definition).
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Definition of Quality
Manufactured product quality dimensions

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Definition
of Quality

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Who Determines Quality?


In the old days, (and in some cases, even
today), the design and the quality
departments determined what is quality
Conformance to specification
Conformance to design
Conformance to need??

Today the ultimate customer who pays


for the product or service determines what
is quality
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Who Determines Quality?


Example of the U.S. auto industry
Considered the effect of imports from Japan as an
aberration and limited to low cost vehicles
Did not take into consideration the changing
consumer needs
Blamed the customer for not understanding the effort
and cost going into the manufacture of costs and for
not buying American cars
Almost went out of business

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Who is Responsible for Quality?


In the days of craft production, the craftsman inspected
the product for non-conformities and defects and
corrected for them
With mass production, we saw the growth of the
inspection department. In the Hawthorne plant of
Western Electric Co., there were 40,000 employees and
5,200 in the inspection department
During World War II, we saw a growth of Statistical
Quality Control. But this was discontinued after the war
due to the tremendous increase in demand and the lack
of top management understanding and commitment
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Who is Responsible for Quality?


In Japan, after World War II, there was a tremendous
shortage of good quality radios and the U.S. occupation
forces requested the services of Dr. Deming and Joseph
Juran to train the Japanese manufacturing companies in
the fundamentals of quality and statistical quality control.
Dr. Deming insisted, and got all the top management of
the Japanese companies to attend the training on quality
Dr. Deming taught the Japanese, and later, the
American companies that quality is the responsibility of
top management. Without their understanding and
commitment, quality is not possible.
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How Has Quality Evolved?


Inspection

Statistical Process Control

Understanding Customer
Needs

Anticipating Customer
Needs

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Session 1
End of module 2

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Session 1
Begin Module 3
Total Quality Management

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TQM- Total Quality Management


TOTAL
-- Whole- Everyone involved
-- All parts of the organization involved
How do you see your role in creating or ensuring
quality in your organization?
Think of areas such as design, purchasing,
manufacturing, warehousing, maintenance, etc.

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Total Involvement
Market research -- must discover quality needs of the users.
Product Development -- must create designs that are responsive to
their needs.
Manufacturing and Operations Planning -- must regulate these
processes capable of executing the product designs.
Purchasing -- must obtain adequate materials.
Inspection and test -- must prove the adequacy of the product
through simulated use.
Marketing -- must sell the product for the proper application.
Customer Service-- must observe the usage, remedy failures, and
report opportunities for improvement.
Administrative and Support Activities-- must meet the needs of their
customers, both internal and external.
Management -- must take leadership in quality activities.
Suppliers must provide the right part at the right time, quality and
cost
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TQM - Total Quality


Management
QUALITY
-- Degree of excellence of a product
or service
-- Customer Satisfaction
Building quality versus weeding it out
Demings pride in work

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TQM- Total Quality Management


MANAGEMENT
-- Act, art, or manner of handling,
controlling, directing, etc.
Reactive versus Proactive
Anticipate Requirements
Leadership

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TQM is both a philosophy and a


set of guiding principles

Of clear vision and mission for the organization


To apply formal and quantitative methods
To fully exploit human potential
To continuously improve all processes within an
organization
To meet and exceed customer needs for now
and in the future

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TQM requires five basic


concepts:
1. Visionary leadership
2. An unwavering focus on customers
3. Effective involvement and utilization of the
entire workforce
4. Treating suppliers as true partners.
5. Data based performance measurement and
continuous improvement of business and
operational processes.

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New and Old Cultures

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Traditional vs. TQM


Traditional = q =Little Q
Modern concept of Quality = Q = Big Q
q

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Quality is a Business Issue


It is no longer only a quality mangers job.
Quality relates to everything in an organization.
Quality demands specialized knowledge,
training and tools.
TQM approach leads to successful
organizations.
Organization MUST have a well-developed
Quality Management System (Study, Implement
and Improve)
Quality Certifications and Awards
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TQM Framework

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Session 1
End of module 3

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Session 1
Begin Module 4
Quality Gurus

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Quality Gurus

Walter Shewhart
W.E. Deming
Joseph Juran
Philip Crosby
Feigenbaum
Ishikawa
Taguchi
Kano
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Walter Shewhart
Considered the father of Statistical Quality
Control and the Shewhart Cycle
The Shewhart Cycle evolved into the
current PDCA/PDSA cycle
Worked at Western Electric Co.
Dr. W. E. Deming learned about Statistical
Quality Control, the Control Chart and the
Shewhart Cycle from Walter Shewhart
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W.E. Deming
Taught the Japanese companies basics of
SQC and the importance of quality at the
end of World War II
Evolved the Shewhart Cycle into the
current PDSA/PDCA cycle
14 Points
System of profound knowledge
Predictable degree of uniformity
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Joseph Juran
Quality is fitness for use
Quality is defined by product features and
absence of deficiencies
Juran Trilogy

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Quality
Features
and
Freedom from
Deficiencies

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Juran Trilogy
Quality Planning
Quality Control
Quality Improvement

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Juran Trilogy
Quality Planning
Identify who are the customers.
Determine the needs of those customers.
Translate those needs into our language.
Develop a product that can respond to those
needs.
Optimise the product features so as to meet
our needs and customer needs.
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Juran Trilogy
Quality Control
Evaluate actual quality performance
Compare actual performance to quality
goals
Act on the difference

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Juran Trilogy
Quality Improvement
Establish the infrastructure needed to secure annual quality
improvement.
Identify the specific needs for improvement -the improvement
projects
For each project establish a project team with clear responsibility
for bringing the project to a successful conclusion
Provide the resource, motivation, and training needed by the
team to:
Diagnose the cause
Stimulate establishment of remedies
Establish controls to hold the gains

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Philip Crosby
The definition of quality is conformance to requirements
(requirements meaning both the product and the
customer's requirements)
The system of quality is prevention
The performance standard is zero defects (relative to
requirements)
The measurement of quality is the price of
nonconformance
Quality is free
Do It Right The First Time
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A.V. Feigenbaum
Total Quality Control
Includes both planning and control
Quality system to provide managerial
procedures to assure customer
satisfaction and an economical cost of
quality

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Kaoru Ishikawa
Use of quality tools to solve problems
Ishikawa diagram

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Genichi Taguchi
Quality is loss to society
Quality loss function

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Kano Model
Goal: Customer Satisfaction

Kano Model of Quality suggests relationships of dissatisfiers (unspoken


wants), satisfiers (Give more of), and delighters (Wows) to customer
satisfaction (CTS=Requirements Critical to Customer Satisfaction).49

Session 1
End of module 4

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Session 1
Begin Module 5
Summary

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Summary of Session 1
Quality is the responsibility of top management
but requires the involvement of everyone
Total Quality Management is a systems
approach to manage quality in an organization
Quality has evolved over the years to where the
focus today is on customers and not on the
manufacturers
Significant advances have been made in quality
in the twentieth century
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Session 1
End of module 5

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