Total Quality

Management

Dr Vikas Madhukar
Professor
Amity Business School,
 Fundamental Concern of
Management Worldwide

 Quality
 Cost, and
 Productivity
 Meaning of Quality

 Webster’s Dictionary
 degree of excellence of a thing
 American Society for Quality
 totality of features and
characteristics that satisfy needs
 Consumer’s and Producer’s
Perspective
 What is Quality?

•Quality is “fitness for use” (Joseph M Juran)

•Quality is “conformance to requirements” (Philip B. Crosby)
•Quality of a product or services is its ability to satisfy the needs
and expectations of the customer
•‘WOW’ your customers
•Producing with ‘Zero Defect’
•The totality of features and characteristics of a product or
service that bear on its ability to satisfy stated or implied need of
customers. (ISO 8402: Quality Vocabulary)
 Defining Quality – 5
Ways
 Conformance to specifications
 Does product/service meet targets and
tolerances defined by designers?
 Fitness for use
 Evaluates performance for intended use
 Value for price paid
 Evaluation of usefulness vs. price paid
 Support services
 Quality of support after sale
 Psychological
 e.g. Ambiance, prestige, friendly staff
 Evolution of Quality Management

Inspection Salvage, sorting, grading, blending, corrective

actions, identify sources of non-conformance
Develop quality manual, process performance
Quality data, self-inspection, product testing, basic
Control quality planning, use of basic statistics,
paperwork control.
Quality systems development, advanced quality
Quality
planning, comprehensive quality manuals, use of
Assurance quality costs, involvement of non-production
operations, failure mode and effects analysis, SPC.

TQM Policy deployment, involve supplier & customers,

involve all operations, process management,
performance measurement, teamwork, employee
involvement.
Evolution of TQM – New
Focus
 Dimensions of
Quality:
Manufactured


Products
Fitness for use
how well product or
service does what it is
supposed to
 Quality of design
 designing quality
characteristics into a
product or service
 A Mercedes and a Ford are
equally “fit for use,” but
with different design
dimensions
 Dimensions of
Quality:
Manufactured
 Performance Products
 basic operating characteristics of a
product; how well a car is handled or its
gas mileage
 Features
 “extra” items added to basic features,
such as a stereo CD or a leather interior in
a car
 Reliability
 probability that a product will operate
properly within an expected time frame;
that is, a TV will work without repair for
about seven years
Dimensions of Quality:
Manufactured Products
(cont.)
 Conformance
 degree to which a product meets pre–
established standards
 Durability
 how long product lasts before replacement
 Serviceability
 ease of getting repairs, speed of repairs,
courtesy and competence of repair person
 Dimensions of Quality:
Manufactured Products
 Aesthetics (cont.)
 how a product looks, feels, sounds,
smells, or tastes
 Safety
 assurance that customer will not
suffer injury or harm from a product;
an especially important consideration
for automobiles
 Perceptions
 subjective perceptions based on
brand name, advertising, and the like
 Dimensions of
Quality:
Service
 Time and Timeliness
 How long must a customer wait for
service, and is it completed on time?
 Is an overnight package delivered
overnight?
 Completeness:
 Is everything customer asked for
provided?
 Is a mail order from a catalogue company
complete when delivered?
 Dimensions of
Quality:
Service (cont.)
 Courtesy:
Courtesy:
 How are customers treated by employees?
 Are catalogue phone operators nice and are
their voices pleasant?
 Consistency
 Is the same level of service provided to
each customer each time?
 Is your newspaper delivered on time every
morning?
 Dimensions of Quality:
Service (cont.)
 Accessibility and convenience
 How easy is it to obtain service?
 Does a service representative answer you calls quickly?
 Accuracy
 Is the service performed right every time?
 Is your bank or credit card statement correct every
month?
 Responsiveness
 How well does the company react to unusual situations?
 How well is a telephone operator able to respond to a
customer’s questions?
Meaning of Quality:
Producer’s
Perspective
 Quality of Conformance
 Making sure a product or service is
produced according to design
 if new tires do not conform to specifications,
they wobble
 if a hotel room is not clean when a guest
checks in, the hotel is not functioning
according to specifications of its design
Meaning of Quality:
A Final Perspective
 Consumer’s and producer’s
perspectives depend on each
other
 Consumer’s perspective
 Producer’s perspective
 Consumer’s view must dominate
What is TQM?
 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.
 How Work Gets Done in an
Organization?
 Inputs Delivered by suppliers

 Processes Steps to transform inputs

 Outputs Goods and Services valued by

customers

Quality of outputs depends on the correct

execution of FIRST two steps. A mistake
anywhere in the process affects everyone in one
way to another.
 Concept of Internal
Customers
Improveme Improveme
nts nts

External Interna Interna Extern

Supplier l l al
s Suppli Suppli Custo
ers ers mer

Requireme Requireme
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
“TQM is a management philosophy
embracing all activities through
which the needs and expectations of
the customer and the community
and the objectives of the
organisation are satisfied in the most
efficient and effective way by
maximising the potential of the
employees in a continuous drive for
improvement”
 Total Quality
Management
TQM is integrated organisational
approach in delighting customers
(both internal and external) by
meeting their expectations on a
continuous basis through everyone
involved in the organisation, working
on continuous improvement in all
products, services, and processes
along with proper problem solving
methodology.
 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
and Continuous
 TQM is the management process
Improvement
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
 Continuous Improvement
versus Traditional
Approach
Traditional Approach Continuous Improvement
 Market-share focus  Customer focus
 Individuals  Cross-functional teams
 Focus on ‘who” and  Focus on “what” and
“why” “how”
 Short-term focus  Long-term focus
 Status quo focus  Continuous
 Product focus improvement
 Fire fighting  Process improvement
focus
 Problem solving
 Quality Throughout
 “A Customer’s impression of quality begins
with the initial contact with the company
and continues through the life of the
product.”
 Customers look to the total package - sales,
service during the sale, packaging, deliver, and
service after the sale.
 Quality extends to how the receptionist
answers the phone, how managers treat
subordinates, how courteous sales and repair
people are, and how the product is serviced
after the sale.
 “All departments of the company must
strive to improve the quality of their
 The TQM System
Objective Continuous
Improvement

Principles Customer Process Total

Focus Improvement Involvement

Top Management Commitments

Elements
Customer Focus
Employees Involvement and Empowerment
Process Focus and improvement
Continuous improvement
Measurement of performance
Education and Training Supportive structure
Communications Reward and recognition
Manufacturing Quality
vs. Service Quality
 Manufacturing quality focuses on
tangible product features
 Conformance, performance, reliability, features
 Service organizations produce
intangible products that must be
experienced
 Quality often defined by perceptional factors
like courtesy, friendliness, promptness, waiting
time, consistency
 TQM Philosophy – What’s
Different?
 Focus on Customer
 Identify and meet customer needs
 Stay tuned to changing needs, e.g. fashion
styles
 Continuous Improvement
 Continuous learning and problem solving, e.g.
Kaizen, 6 sigma
 Quality at the Source
 Inspection vs. prevention & problem solving
 Employee Empowerment
 Empower all employees; external and internal
 TQM Philosophy– What’s
Different? (continued)
 Understanding Quality Tools
 Ongoing training on analysis, assessment, and
correction, & implementation tools
 Team Approach
 Teams formed around processes – 8 to 10
people
 Meet weekly to analyze and solve problems
 Benchmarking
 Studying practices at “best in class”
companies
 Managing Supplier Quality
 Certifying suppliers vs. receiving inspection
 What is TQM?
Concern for
Constant drive Management employee
for continuous by Fact involvement and
improvement and development
learning.
Organisation
Passion to deliver response
Result Focus customer value / ability
excellence

Actions not just Partnership

perspective
words (internal /
Process
(implementation) external)
Management
BASIC PRINCIPLES/APPROACHES OF TQM

Approach Management Led

Scope Company Wide

Scale Everyone is responsible for Quality

Philosophy Prevention not Detection

Standard Right First Time

Control Cost of Quality

Theme On going Improvement

 LEARNING AND TQM

Learning

Process Improvement

Quality Improvement

Customer Shareholder Employee

Satisfaction Satisfaction Satisfaction
 Cost of Quality
 Cost of Achieving Good Quality
 Prevention costs
 costs incurred during product design
 Appraisal costs
 costs of measuring, testing, and analyzing
 Cost of Poor Quality
 Internal failure costs
 include scrap, rework, process failure,
downtime, and price reductions
 External failure costs
 include complaints, returns, warranty claims,
liability, and lost sales
 Prevention Costs
 Quality planning costs  Training costs
 costs of developing and  costs of developing and
implementing quality putting on quality
management program
training programs for
 Product-design costs employees and
 costs of designing management
products with quality
characteristics
 Information costs
 Process costs  costs of acquiring and
maintaining data
 costs expended to
make sure productive related to quality, and
process conforms to development of reports
quality specifications on quality performance
 Appraisal Costs
 Inspection and testing
 costs of testing and inspecting materials, parts,
and product at various stages and at the end
of a process
 Test equipment costs
 costs of maintaining equipment used in testing
quality characteristics of products
 Operator costs
 costs of time spent by operators to gather data
for testing product quality, to make equipment
adjustments to maintain quality, and to stop
work to assess quality
 Internal Failure Costs
 Scrap costs  Process downtime
 costs of poor-quality costs
products that must be
discarded, including  costs of shutting down
labor, material, and productive process to
indirect costs
fix problem
 Rework costs
 costs of fixing defective
 Price-downgrading
products to conform to costs
quality specifications  costs of discounting
 Process failure costs poor-quality products—
 costs of determining why that is, selling products
production process is
producing poor-quality as “seconds”
products
 External Failure Costs
 Customer complaint costs
 costs of investigating and
satisfactorily responding to
a customer complaint
resulting from a poor-quality
product
 Product return costs
 costs of handling and
replacing poor-quality
products returned by
customer
 Warranty claims costs
 costs of complying with
product warranties
 Product liability
costs
 litigation costs
resulting from
product liability and
customer injury
 Lost sales costs
 costs incurred
because customers
are dissatisfied with
poor quality
products and do not
make additional
purchases
 Quality Gurus
 W Edwards
Deming
 Joseph Juran
 Philip Crosby
 Shigeo Shingo
 Kaoru Ishikawa
 Yoshio Kondo
 Taiichi Ohno
W Edwards Deming (1900-
1993)
the key to quality: reducing
 variation
Electrical Engineering,
University of Wyoming, 1921
 PhD, Yale University
 Western Electric Hawthorne, Chicago
 US census statistician, 1939/40
 Teaching Shewhart methods, 1942
 invited to Japan after the war ....
 Quality, Productivity and Competitive Position,
1982
 Out of the Crisis, 1986/88
 British Deming Association, Salisbury
 W Edwards Deming
 regarded by the Japanese as the
chief architect of their industrial
success
 “all processes are vulnerable to loss
of quality through variation: if levels
of variation are managed, they can
be decreased and quality raised”
 quality is about people, not products
 W Edwards Deming
 Core element is the “management
circle”
 planning
 do/implementation

 check/study

 action

 PDCA (or PDSA) cycle

 Continuous improvement (Kaizen)

 teamwork and competence in problem
solving
 The Deming Cycle or PDCA Cycle

PLAN
Plan a change to the process. Predict the
effect this change will have and plan how
the effects will be measured
ACT DO
Adopt the change as a Implement the change on
permanent modification a small scale and measure
to the process, or the effects
abandon it.
STUDY
Study the results to
learn what effect the
change had, if any.
 W Edwards Deming
 Out of the Crisis (1984)
 having a satisfied customer is not
enough
 profit in business comes from
 repeat customers
 customers that boast about your product
and service
 customers that bring friends with them

 necessary to anticipate customer needs

 W. Edwards Deming’s 14
Points
1) Create constancy of purpose towards improvement
of product and services.
2) Adopt the new philosophy. We can no longer live
with commonly accepted levels of delays, mistakes,
defective workmanship.
3) Cease dependence on mass inspection. Require,
instead, statistical evidence that quality is built in.
4) End the practice of awarding business on the basis of
price tag.
 W. Edwards Deming’s 14
Points
5) Find problems. It is management’s job to work
continually on the system.
6) Institute modern methods of training on the job.
7) Institute modern methods of supervision of
production workers. The responsibility of foremen
must be changed from numbers to quality.
8) Drive out fear that everyone may work effectively for
the company.
 W. Edwards Deming’s 14
Points
9) Break down barriers between departments.
10) Eliminate numerical goals, posters and slogans for
the workforce asking for new levels of productivity
without providing methods.
11) Eliminate work standards that prescribe numerical
quotas.
12) Remove barriers that stand between the hourly
worker and his right to pride of workmanship.
 W. Edwards Deming’s 14
Points
13) Institute a vigorous programme of education and
retraining.
14) Create a structure in top management that will push
everyday on the above 13 points.
 Deming’s Chain Reaction

Improve Quality
Provide jobs and Cost decreases because
more jobs of less rework, fewer
mistakes, fewer delays,
snags, better use of
Stay in business machine time and
materials

Productivity improves
Capture the market with
better quality and lower price
 Joseph Juran (b.1904)
company wide quality cannot be
delegated
 Western Electric manufacturing,
1920s
 AT&T manufacturing
 Quality Control Handbook, 1951
 Management of Quality courses
 Juran on Planning for Quality, 1988
 Joseph Juran
 structure CWQM concept:
Company-Wide Quality Management
 essential for senior managers to
 involve themselves
 define the goals

 assign responsibilities

 measure progress
 Joseph Juran
 empowerment of the workforce
 quality linked to
human relations and teamwork
 key elements
 identifying customers and their needs
 creating measurements of quality

 planning processes to meet quality

goals
 continuous improvements
Joseph JURAN
 Quality just not just happen but has to be
planned
 Trilogy of Quality:
 Quality Planning
 Quality Control

 Quality Improvement
Joseph JURAN
Quality PLANNING consists of:
 Identifying customers and their needs

 Establishing optimum quality goals

 Creating measurements of quality

 Plan to meet quality goals under operating

conditions
 Produce continuing results
Joseph JURAN
 Emphasises the importance of internal as well as
external customers
 Concept of ‘fitness for use’ to be applied to the
interim product for all internal customers
 Actions should consist of
 90% substance,
 10% exhortation
(not the reverse)
 Philip Crosby (1926-
2001)
conformance to requirements
 Martin missiles
 QM at ITT, then corporate VP
 1979: Quality is Free
 Philip Crosby Associates Inc.
 1984: Quality without Tears
“Do It Right First Time”
“Zero Defects”
Philip CROSBY
 Quality is defined as conformance to
requirements
 Traditional quality control represent failure

 Manufacturing companies spend 20%

revenues doing things wrong so…
 ‘Do it Right First Time’
 ‘Zero Defects’
Philip CROSBY
 Without reservation senior management is
entirely responsible for quality
 Goal should be to give all staff training and
tools of quality improvement to apply the
concepts of Prevention management
 Quality improvement has to be ongoing
Philip CROSBY
Characteristics of continuing success…
3. People do things right first time
4. Change is anticipated and used to advantage
5. Growth s consistent and profitable
6. New products and services appear when
needed
7. Everyone is happy to work there
Philip CROSBY
Four absolutes of Quality Management
• Quality is conformance to requirements
• Create quality by prevention, not appraisal
• Performance standard should be ‘Zero Defects’
• Measurement of quality is the price of non-
conformance
 Hence ‘QUALITY IS FREE’
Four Absolutes of Quality
Management (Crosby,
1979)

Cost of Quality classified as:

① Prevention costs

① Appraisal costs

① Failure costs
Cost of Quality:
prevention
design reviews
costs
 product qualification
 drawing checking
 engineering quality
orientation
 supplier evaluations
 supplier quality seminars
 specification review
 process capability studies
 tool control
 operation training
 quality orientation
 acceptance planning
 zero defects programme
 Quality Audits
 preventative maintenance
Cost of Quality: appraisal
costs
 prototype inspection and test
 production specification
conformance analysis
 supplier surveillance
 receiving inspection and test
 product acceptance
 process control acceptance
 packaging inspection
 status measurement and reporting
Cost of Quality: failure
costs
 consumer affairs
 redesign
 engineering change order
 purchasing change order
 corrective action costs
 rework
 scrap
 warranty
 service after service
 product liability
Shigeo Shingo (b.1909-
1990)
Poka-Yoke: mistake-proofing
 1930: ME degree from Yamanashi
Tech
 Taipei Railway Factory, Taiwan
 consultant with Japan Management
Assn
 1955: training at Toyota Motor Company
 1959: Institute of Management
Improvement
 1961-64: concept of Poka-Yoke
 Shigeo Shingo

 Poka-Yoke: mistake-proofing
 identify errors before they become
defects
 stop the process whenever a defect
occurs, define the source and prevent
recurrence
 1967: source inspection + improved
PY
 prevented the worker from making
errors
 Kaoru Ishikawa (1915-
1989)
Pareto and cause-and-effect
 1939: engg. graduate of Tokyo Univ
diagrams
 1947: Assistant Professor
 1955-60: Company-wide QC
movement
 1960: Professor
 Kaoru Ishikawa
“quality does not only mean
the quality of the product,
but also of after sales service,
quality of management,
the company itself
and human life”
Kaoru Ishikawa (points 1-7
of 15)
 product quality is improved and
becomes uniform. Defects are
reduced
 reliability of goods is improved

 cost is reduced

 quantity of production is increased,

rational production schedules are
possible
 wasteful work and rework are
reduced
 technique is established and
Kaoru Ishikawa (points 8-
15 of 15)
 rational contracts between
vendor/vendee
 sales market is enlarged

 better relationships between

departments
 false data and reports are reduced

 freer, more democratic discussions

 smoother operation of meetings

 more rational repairs and installation


 Yoshio Kondo (b.1924)
motivation of employees is
important
 1945: graduated from Kyoto
University
 1961: doctorate in engineering &
Prof
 1987 Emeritus Professor
 1989: Human Motivation
- a key factor for management
 1993: Companywide Quality Control
 leadership is central to implementation of
TQM
 Yoshio Kondo
 Human work should include:
 creativity
 the joy of thinking
 physical activity
 the joy of working with sweat on the
forehead
 sociality
 the joy of sharing pleasure and pain with
colleagues
 Yoshio Kondo
 Four points of action
to support motivation
 when giving work instruction,
clarify the true aims of the work
 see that people have a strong sense
of responsibility towards their work
 give time for the creation of ideas

 nurture ideas and bring them to fruition

 Yoshio Kondo
 Leaders must have
 a dream (vision and shared goals)
 strength of will and tenacity of purpose

 ability to win the support of followers

 ability to do more than their followers,

without interfering when they can do it
alone
 successes

 ability to give the right advice

 Taiichi Ohno (1912-1990)
 regarded as the father of
Just-In-Time (JIT) at Toyota.
 graduated with mech eng degree from
Nogoya
 worked for the Toyoda Weaving Company
 1939: transferred to Toyota Motor
Company as a machine shop manager
 1988: Workplace Management ~ just-
in-time and Toyota Production System
(later known as Lean Manufacturing).
 Ohno: seven forms of
waste
 overproduction
 waiting
 transportation
 motion
 inventory
 defects
 overprocessing
Review of Main Ideas of the
Quality Guru
 W. E. Deming - introduced concepts of
variation to the Japanese and also a
systematic approach to problem solving,
which later became know as the Deming,
PDCA or PDSA cycle. Also given 14 points
and has summarized his 70 years
experience in his System of Profound
Knowledge.
 Juran – Quality does not happen by
accident, it must be planned, and quality
planning is part of the trilogy of planning,
control and improvement. There is no
Review of Main Ideas of the
Quality Guru
 Philip Crosby – ‘DO it right first time’ and
‘Zero defects’. He based his quality
improvement approach on four absolutes
of quality management, the cost of quality
and quality improvement process.
 Kaoru Ishikawa’s – 1) 7 tools of Quality
Control, 2) Company Wide Quality Control
(CWQC), 3) Quality Circle Movement.
 Shiegeo Shingo – Poka-Yoke system to
ensure ‘zero-defects’ in production by
preventive measures.
Review of Main Ideas of the
Quality Guru
 Yoshio Kondo – identifies that
quality is more compatible with
human nature than cost and
productivity. He developed a four
point approach to motivation which
makes it possible for work to be
reborn as a creative activity.
 Taiichi Ohno – JIT (Just-in-time),
Lean Manufacturing, Seven form of
WASTE (MUDA)
Seven Problem Solving
Tools
 Pareto Analysis
 Flowcharts
 Checklists
 Histograms
 Scatter Diagrams
 Control Charts
 Cause-and-Effect Diagrams
 PARETO CHART
DEFINITION USES
 to prioritize problems
A Pareto Chart is a
vertical bar chart in
 to analyze a process
which the bars are  to identify root causes
arranged in the  to verify that
descending order whatever
of their height improvement process
starting from the you implement
left and prioritize continues to work
the problems or
issues.
 Pareto Analysis

NUMBER OF
CAUSE DEFECTS PERCENTAGE

Poor design 80 64 %
Wrong part dimensions 16 13
Defective parts 12 10
Incorrect machine calibration 7 6
Operator errors 4 3
Defective material 3 2
Surface abrasions 3 2
125 100 %
 Percent from each cause

10
20
30
40
50
60
70

0
Po
W or
ro De
ng si
di gn
(64)

m
De en
fe si
ct on
iv s

(13)
M e
ac pa
hi rts
ne
O
ca (10)
pe l ibr
ra at
to io
(6)
r ns
e r
De ro
fe rs
ct
iv
(3)

e
m
Chart

Su
at

Causes of poor quality

Pareto

rfa er
ce ia
(2)

ab ls
ra
si
on
s
(2)
 Flow Charts
Flow charts are nothing but graphical representation of steps involved in a
process. Flow charts give in detail the sequence involved in the material, machine
and operation that are involved in the completion of the process. Thus, they are
the excellent means of documenting the steps that are carried out in a process.

Start/
Finish Operation Operation Decision Operation

Operation Operation

Decision Start/
Finish
 Check Sheet
Check sheets are nothing but forms that can be used to systematically collect data.
Check sheet give the user a place to start and provides the steps to be followed in
Collecting the data

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Transformers ||||
Commands
CRT |
 CHECK SHEET
USES STEPS
 to gather data  team agrees on what
 to test a theory to observe
 to evaluate  decide who collects
alternate solutions data
 to verify that  decide time period
whatever for collecting data
improvement  design Check Sheet
process you  collect data
implement  compile data in the
continues to work Check Sheet
 review Check Sheet
 Histogram
Histograms help in understanding the variation in the process. It also helps in
estimating the process capability.

20

15

10

0
1 2 6 13 10 16 19 17 12 16 2017 13 5 6 2 1
 Scatter Diagram
It is a graph of points plotted; this graph is helpful in comparing two variables.
The distribution of the points helps in identifying the cause and effect relationship
Between two variables.

X
 Control Chart
A control chart is nothing but a run chart with limits. This is helpful in finding the
amount and nature of variation in a process.

24
UCL = 23.35
Number of defects

21
18 c = 12.67

15
12
9

6
3 LCL = 1.99
2 4 6 8 10 12 14 16
Sample number
 Cause and Effect
Diagram
 Developed by Dr Kaoru Ishikawa in 1943. It is also
known by the name of 1) Ishikawa diagram,
2)Fishbone diagram.

 This diagram is helpful in representing the

relationship between an effect and the potential
or possible causes that influences it.

 This is very much helpful when one want to find

out the solution to a particular problem that could
have a number of causes for it and when we are
interested in finding out the root cause for it.
 Cause-and-Effect
Diagram
Measurement Human Machines
Faulty
testing equipment Poor supervision Out of adjustment

Incorrect specifications Lack of concentration Tooling problems

Improper methods Inadequate training Old / worn

Quality
Inaccurate Problem
temperature
control Defective from vendor Poor process design
Ineffective quality
Not to specifications management
Dust and Dirt Material- Deficiencies
handling problems in product design

Environment Materials Process

Quality
Circles
Organization
8-10 members
Same area
Supervisor/moderator

Training
Presentation Group processes
Implementation Data collection
Monitoring Problem analysis

Problem
Solution Identification
Problem results List alternatives
Consensus
Brainstorming
Problem
Analysis
Cause and effect
Data collection
and analysis
 Six Sigma
 A process for developing and
delivering near perfect products and
services
 Measure of how much a process
deviates from perfection
 3.4 defects per million opportunities
 Champion
 an executive responsible for project
success
 Black Belts and Green
Belts
 Black Belt
 project leader
 Master Black
Belt
 a teacher and
mentor for Black
Belts
 Green Belts
 project team
members
 Six Sigma:
DMAIC
DEFINE MEASURE ANALYZE IMPROVE CONTROL

67,000 DPMO
cost = 25% of
sales 3.4 DPMO
 Pokayoke (Error
Proofing)
 To design an operation in such a way
that specific errors are prevented
from causing major problems to the
customer. It is used when defects
occur and require 100 per cent
inspection, immediate feedback and
action at the 1) source of raw
material 2) start of the production
process 3) production point where an
error may occur.
 Kaizen
 A Japanese term meaning ‘change
for the better’ the concept implies a
CONTINUOS IMPROVEMENT in all
company functions at all levels. It is
more cultural attitude and a life style
rather than techniques.
 5 S Framework for Good
Housekeeping
 Seiri - Reorganisation, get rid of the
unnecessary and keep the necessary.
 Seiton - Arrangements, putting things in
order.
 Seiso - Cleanliness, clean work condition
of work and to get rid of trash and dirt.
 Seiketsu – Personal cleanliness, ‘there is
healthy mind in healthy body’
 Shitsuke - Discipline, follow procedure
in the work place and workshop with
utmost sense of discipline.
 Business Process Re-
engineering (BPR)
 BPR is the fundamental rethinking
and radical redesign of business
processes to achieve dramatic
improvements in critical,
contemporary measures of
performance, such as cost, quality,
and speed.
 Steps in BPR
 Process identification and mapping
 Choosing or selection of process to
re-engineer
 Focus on critical processes
 Feasible processes
 Understanding the process
 Re-design the process.
 Creating TQM Culture
From Traditional Culture
 Hierarchical style
 Top down information flow
 Inward quality focus
 Functional focus
 Short-term planning
 Episodic improvements
 Top down initiatives
 Manage and delegate
 Direct
 Counsel
 Functional and narrow scope
of jobs
 Enforcement
 Fire – fighting with few
individuals/group
To TQM Culture
 Participative style
 Top down, lateral and upward
information flow
 Customer defined quality
focus
 Process focus
 A vision for the future
 Comprehensive/Continuous
improvements
 All staff involved and engaged
 Lead and Coach
 Empower
 Ownership and participation
 Integrated functions
 Promoting mutual trust
 Team initiatives group
focussing on continuous
improvement
 Steps for Creating TQM
Culture
 Management accountability and a deep
sense of responsibility & commitment
towards employees is the starting point.
 Total people involvement and
empowerment
 Communication
 Training to employees
 Management thoughts and action towards
delighting its customers
 Removing organisational boundaries and
internal competition
 Using fact based decision making
 Use of Kaizen
 Benchmarking and
Continuous Improvement
 Benchmarking
 The practice of establishing internal
standards of performance by looking to
how world-class companies run their
businesses
 Continuous Improvement
 The company makes small incremental
improvements toward excellence on a
continual basis
 ISO Standards
 ISO 9000 Standards:
 Certification developed by International
Organization for Standardization
 Set of internationally recognized quality
standards
 Companies are periodically audited & certified
 ISO 9000:2000 QMS – Fundamentals and
Standards
 ISO 9001:2000 QMS – Requirements
 ISO 9004:2000 QMS - Guidelines for
Performance
 ISO 14000:
 Focuses on a company’s environmental
Quality is a Journey,
not a Destination