Total Quality

Management

Presented By:
Suman
Lecturer (ECE Deptt.)
Contents
 Quality
Chapter 1

Quality
What is Quality
What is excellence?
Factors of Excellence
 Strategy and Excellence
 Creative insight, innovation
 Adaptive to changes
 Customer orientation, employees participation,
and their recognition
 Team work
 Continuous improvement, prevention oriented
 TQM Oriented
Dimensions of Quality
 Performance - main characteristics of the
product/service
 Aesthetics - appearance, feel, smell, taste
 Special features - extra characteristics
 Conformance - how well product/service conforms to
customer’s expectations
 Safety - Risk of injury
 Reliability - consistency of performance
Dimensions of Quality (Contd)
 Durability - useful life of the product/service
 Perceived Quality - indirect evaluation of
quality (e.g. reputation)
 Service after sale - handling of customer
complaints or checking on customer
satisfaction
Why do we need quality?
 Quality makes customer happy
• Companies exist to “delight the customer”
 Poor Quality reduces productivity and increases costs.
• “It is not quality that costs, it is all the things you do because you do
not have quality in the first place.” [Crosby 1979]
 Quality is no longer an order winner, it is merely an order
qualifier.
 High technology and complicated products make quality a
necessity. Computerization and automation increases
standardization and quality levels.
• “What technology makes possible today, it makes necessary
tomorrow.” [Kolesar 1991]
The Consequences of Poor Quality
 Loss of business: Customer quietly stops buying. Customer
complaints rarely reach to the upper management.

 Liability: Due to damages or injuries resulting from poor

quality (design, conformance, ease of use, service)

 Low productivity: Rework or scrap. More input but does not

increase the output.

 High costs
Costs of Quality
 Failure Costs - costs incurred by defective
parts/products or faulty services.
• Internal Failure Costs
• Costs incurred to fix problems that are detected before the
product/service is delivered to the customer.

• External Failure Costs

• All costs incurred to fix problems that are detected after the
product/service is delivered to the customer.
Costs of Quality (continued)
 Appraisal Costs
• Product and/or service inspection costs.
• EX: Time and effort spent for course evaluations
 Prevention Costs
• Quality training, planning, customer assessment,
process control, and quality improvement costs to
prevent defects from occurring
• EX: Instructor training for better course
presentation
Responsibility for Quality
 Top management, past vs. current
 Design teams
 Procurement departments, standard input
 Production/operations, processes conform to standards
 Quality assurance
 Packaging and shipping, damaged in transit
 Marketing and sales, customer wishes
 Customer service, quality feedback
Chapter 2

TQM
Evolution of Quality Management
 1924 - Statistical process control charts
 1930 - Tables for acceptance sampling

 1940’s - Statistical sampling techniques

 1950’s - Quality assurance/TQC

 1960’s - Zero defects

 1970’s - Quality assurance in services

TQM Definition
 Total Quality Management (TQM) is a management
strategy aimed at embedding awareness of quality in all
organizational processes.

 Definition
 TQM is composed of three paradigms:
 Total : Organization wide
 Quality: With its usual Definitions, with all its complexities
(External Definition)
 Management: The system of managing with steps like Plan,
Organize, Control, Lead, Staff, etc.
Total Quality Control (TQC)
 “ An effort of continuous quality improvement
of all processess, products and services
through universal participation that results in
increasing customer satisfaction and loyalty
and improved business results.”
Basic Approach of TQM
 A committed and involved management to provide long-term top - to -
bottom organizational support.
 An unwavering focus on the customer, both internally and externally.
 Effective involvement and utilization of the entire work force.
 Continuous improvement of the business and production process.
 Treating supplier as partners.
 Establish performance measures for the processes.
Elements of TQM
 Continual improvement: Kaizen
 Competitive benchmarking
 Employee empowerment
 Team approach
 Decisions based on facts
 Knowledge of tools
 Supplier quality
 Champion
 Quality at the source: The philosophy of making each worker
responsible for the quality of his or her work.
 Suppliers
TQM Model
 The model begins with understanding customer needs.
Developing an intimate understanding of customer
needs allows TQM organizations to predict future
customer behavior.
 The final element of the TQM model is total
participation. In TQM organizations, top management
takes personal responsibility for implementing,
nurturing, and refining all TQM activities. Management
and employees work together to create an empowered
environment where people are valued.
Oakland Model
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.
Obstacles to Implementing TQM
 Lack of:
• Company-wide definition of quality
• Strategic plan for change
• Resistance to a change
• Customer focus
• Real employee empowerment
• Red tape
• Strong motivation
• Time to devote to quality initiatives
• Leadership
Advantages and Disadvantages of TQM
 Advantages:
 Improves reputation- faults and problems are spotted and sorted
quicker (zero defects)
 Higher employee morale– workers motivated by extra responsibility,
team work and involvement in decisions of TQM
 Lower costs – Decrease waste as fewer defective products and no
need for separate
 Quality Control inspectors
 Disadvantages:
 Initial introduction costs- training workers and disrupting current
production whilst being implemented
 Benefits may not be seen for several years
 Workers may be resistant to change – may feel less secure in jobs
Chapter 3

JIT
Just-In-Time (JIT)
JIT is an integrated set of activities designed to
achieve high-volume production using minimal
inventories of raw materials, finished goods & work
in process.
 Management philosophy…Nothing produce until
needed.
 Encompasses the successful execution of all
production activities required from design to delivery
of products.
Just-In-Time (JIT) Benefits
 Minimize waste of time, energy, material & errors
 Minimize waste…in both factories: Manufacturing product &
“Hidden”
 Attack/eliminate waste
 Value added to the final product philosophy … from
customer’s point of view
 Expose problems
 Continuous improvement/change
 Enforced problem solving approach
When is JIT a suitable system to use?
JIT is a suitable production system when:
 The engineering manufacturer has a standard product that is steadily
produced in practical amounts.
 The product is of high value.

 The workforce producing the product is a disciplined one.

 Flexible working practices are maintained.

 Machinery does not demand lengthy set up times.

 Quality can be guaranteed through either a cost penalty for defects or

good working practices.
Advantages JIT system?
 Products are of a better standard.
 Less waste and, in turn, less rework.
 Set up times are reduced.
 Production flow is improved.
 Less stock.
 Overall savings.
 Efficiency is increased.
 Relations with suppliers are enhanced.
 Plus many more…
What is kanban?
 Developed at Toyota 1950s to manage line material flows.
 Kanban ( Kan=card, Ban= signal )
 simple movement system
• “cards” to signal & communicate reorder information
• boxes/containers to take “lots” of parts from one work station to another
(client-server).
 Server only delivers components to client work station as & when needed
(called/pulled).
 Minimise storage in the production area.
 Workstations only produce/deliver components when called (they receive card
+ empty container).
 The work-station produces enough to fill the container
 Kanban = an authorization to produce more inventory
 We thus limit the amount of inventory in process.
Minimizing Waste: Kanban Control
System
withdrawal kanban

Bin Bin
Machine Part A Part A Assembly
Center
Line

production Material Flow

kanban
Card (signal) Flow
Kanban Limitations
 Repetition of demand is required Why?
 Demand must be (relatively) smooth Especially in
terms of overall volume
 Some change in mix OK if setups are quick
 Direct Kanban links and smooth demand
Collaborating customers (customer development)
Otherwise an assembly schedule is usedthe
MPS/assembly schedule uses levelled scheduling to
minimise variability may require customer-facing
stock to damp fluctuation.
Wastes
Waste in operations from
overproduction
waiting time
transportation
inventory waste
processing
motion/movement
product defects
Waste Elimination
 Production should be done in small
batches.
 Training of employees

 Improving the design and processes.

 Better maintenance of machinery.

 Get rid of obsolete materials.

Chapter 4

Customer
Customer Satisfaction
 TQM purpose is customer satisfaction to
a degree that his/her expectations are to
be not only met but also exceeded. So
delight the customers.
 As business cannot survive without
satisfied customers.
Customer Satisfaction Surveys
 Post Purchase Survey: through response
cards

 Post Installation Survey: through mail,

telephone method

 Customer Satisfaction Survey: done by

specialist agencies who conduct third party
survey.
 Kano’s Model of Customer Satisfaction
Satisfaction

Satisfier
Delighters One Dimensional
Attractive Desired Quality
Excited Quality

Service Service
Performance Performance
Dissatisfier
Must Be
Expected Quality

Dissatisfaction
 Chapter 5
Planning Process
What is planning
Outcomes of Planning
 Basic understanding of TQM to
management team
 An agreed company mission statement

 Allocation of roles and responsibilities

 Implementation of TQM plan together with

the work force.
 Dates for series of review meetings.
The Term Hoshin Planning (Kanri)
 The
word Hoshin results from the
combination of two Japanese words:

• Ho means course or direction

• Shin means needle
• Hoshin means direction needle (or
compass)
The Term Hoshin Planning (Kanri)
 The word Kanri results from the combination of
two Japanese words
• Kan means control
• Ri means reason or logic

 The process of Hoshin Kanri can be understood

as an effort to manage or control change in
order to facilitate organizational effectiveness
Hoshin Planning Definition
‘Hoshin Planning is an approach to planning for
breakthrough improvements towards an
organization’s vision. Hoshin Planning draws on
systems thinking, teamwork, the PDCA cycle, and a
series of creative and logical tools designed to
accelerate the achievement of the ‘Hoshin’
objectives.’
The Hoshin Kanri Process
PLAN IMPLEMENTATION

 DEFINE THE FOCUS—WHAT DO YOU WANT TO IMPROVE?

 ENVISION POSSIBLE SOLUTIONS BY BRAINSTORMING
 RANK THE SUGGESTIONS
 IMPLEMENT THE TOP SUGGESTIONS
• 1–3
• 1–5
• 1 – 10
 ASSESS THE RESULTS
 REPEAT THE PROCESS UNTIL QUALITY IS MAXIMIZED
Steps of policy Development
 Step One: Define the Issue or Problem
 The process of policy development begins with recognizing the need
for written policy.
 The board is not alone in identifying policy needs. Parents, students,
teachers, local taxpayers, the superintendent, the state or federal
government, and pressure groups are all sources of policy issues
and problems.
 Step Two: Gather Necessary Information on the Issue
 Sample policy language and analysis from your state association
and NSBA
 Experience from other districts
 Education research
 Local input
 State association seminars
 State or federal laws and regulations
Steps of policy Development (Contd…)
 Step Three: Secure Recommendations from Superintendent
 Once facts are available, the board listens to recommendations
for handling the policy issue.
 Step Four: Discuss and Debate at the Board Level (include
input of affected parties)
 Is the content within the scope of the board’s authority?
 Is it consistent with local, state, and federal law? The U.S. and
the state’s constitution?
 Does it support the school district’s goals or objectives?
 Is it good educational (personnel, business) practice?
 Does it adequately cover the subject?
 Is it limited to one policy topic?
 Is it consistent with board’s existing policies?
 Can it be administered? Is it practical? How much will it cost?
Steps of policy Development (Contd…)
 Step Five: Draft Policy
 After the board has reached consensus on policy content, the board’s
policy writer goes to work. This person must be able to write clearly,
directly, and succinctly. Policy must be broadly stated with room for
adjustment to fit special circumstances.
 Step Six: Hold First Reading
 Once in writing, the policy draft is placed on the board’s agenda for a
first reading, giving notice to everyone interested that the board has a
specific policy under consideration.
 Step Seven: Make Revisions
 Revise the policy based on the information gained form the questions,
comments and suggestions obtained after the first reading.
 Step Eight: Hold Second Reading
 The period between the first and second reading allows time for all
concerned persons to ask questions, make comments, and offer
suggestions for changes and improvements.
Steps of policy Development (Contd…)
 Step Nine: Adopt the Policy
 Step Ten: Distribute to the Public
Seeing the policies are distributed as widely as possible is one way to
ensure implementation.
 Step Eleven: Oversee Policy Implementation
Policy oversight is a dynamic process that includes an evaluative
component. Oversight is intended to make sure that the policy
accomplishes its goal. Policy oversight can provide guidance on whether
to continue or modify the policy and to determine future courses of
action.
 Step Twelve: Policy Evaluation and Revision or Modification
Policies should be reviewed on a regular basis as a part of the board’s
standard operating principles. They can become out of date, unclear, or
even contrary to the way in which the school district is operating. When
any of this occurs the policy needs modification or elimination. The policy
amendment process is the same as the policy adoption process.
 Chapter 6
Process
Management
 What is a Process?
 A process is a set of successive operations
targeting a specific result.
 It involves input (data, materials, products in various
stages of completion) from suppliers or previous
processes, which it transforms and transmits either
to a process downstream, or to a customer.
 In other words, a process is a series of tasks
performed with specific resources.
Process Improvement and Tools
 Process improvement - a systematic approach
• Process mapping, flowchart
• Analyze the process, too few steps, too many steps
• Redesign the process
 Tools

• There are a number of tools that can be used for problem

solving and process improvement
• Tools aid in data collection and interpretation, and provide
the basis for decision making
The Process Improvement Cycle
Select a
process
Document
Study/document

Evaluate

Seek ways to
Implement the
Improve it
Improved process

Design an
Improved process
Process Management
 According to TQM a quality product comes from a quality process.
This means that quality should be built into the process.
 Quality at the source is the belief that it is far better to uncover the
source of quality problems and correct it than to discard defective
items after production. If the source of the problem is not corrected,
the problem will continue.
 The old concept focused on inspecting goods after they were
produced or
 after a particular stage of production. If an inspection revealed
defects, the defective products were either discarded or sent back
for reworking.
 All this cost the company money, and these costs were passed on to
the customer.
 The new concept of quality focuses on identifying quality problems at
the source and correcting them.
Process Management Roles & Responsibilities
 Process Champion: ensures process efforts are linked with overall
business strategies and goals and advocates process breakthrough
initiatives for at least one QMS process.
 Process Owner: provides process vision, commits to customers’ primary
requirements and is ultimately accountable for results of at least one QMS
process.
 Process Leader: manages process on a daily basis, establishes process-
specific goals, charts PMT activity, manages funding process and
interfaces with customers and suppliers.
 PMT Leader: leads effort to develop and implement initiatives to improve
process capability and achieve process results.
 PMT Member: analyzes and recommends improvements to the process.
 Support Manager: manages the execution of current process and
implements process improvement to achieve process results.
 Process Associate: executes current process and implements process
improvements to achieve process results.
Quality Function Deployment (QFD)
 To produce a product that customers want, we need to translate
customers’ everyday language into specific technical
requirements. However, this can often be difficult.
 A useful tool for translating the voice of the customer into
specific technical requirements is quality function deployment
(QFD). Quality function deployment is also useful in enhancing
communication between different functions, such as marketing,
operations, and engineering.
 QFD enables us to view the relationships among the variables
involved in the design of a product, such as technical versus
customer requirements. This can help us analyze the big picture
—for example, by running tests to see how changes in certain
technical requirements of the product affect customer
requirements. An example is an automobile manufacturer
evaluating how changes in materials affect customer safety
requirements.
Quality Function Deployment (Contd..)
 QFD begins by identifying important customer requirements,
which typically come from the marketing department. These
requirements are numerically scored based on their
importance, and scores are translated into specific product
characteristics.
 Evaluations are then made of how the product compares
with its main competitors relative to the identified
characteristics. Finally, specific goals are set to address the
identified problems. The resulting matrix looks like a picture
of a house and is often called the house of quality.
Quality Assurance
Quality assurance is a wide ranging concept covering all
matters that individually or collectively influence the
quality of a product.

It is the totality of the arrangements made with the

object of ensuring that pharmaceutical products are of
the quality required for their intended use.

QA is the heart and soul of quality control

QA = QC + GMP
Quality Assurance-Highlights
 Quality assurance is independence of
manufacturing

 In process quality is checked during manufacturing

 Validation of facilities, equipments, process,

products and cleaning as per master plan
Quality Assurance-Highlights
 Complaint handling

 Storage of quality record and control samples

 Stability studies

 Registration of documents
 Chapter 7
Total Employees
Empowerment
 Involving and Empowering People
 Employees are a company’s most precious resource and the only
one which can take control of processes and identify and reduce
anything which does not meet the “lean” or “just enough”
standard.
 Fort that reason, people must be involved and empowered and
their value recognized.
 Initiative and creativity must be developed in order to encourage
problem-solving.
 Human resource development involves acquisition of experience
linked with a training component, which must focus on the
importance of cooperation and team work as incentives for better
quality, productivity and safety.
Employee Empowerment
 Part of the TQM philosophy is to empower all employees to
seek out quality problems and correct them.
 With the old concept of quality, employees were afraid to
identify problems for fear that they would be reprimanded.
Often poor quality was passed on to someone else, in order to
make it “someone else’s problem.”
 The new concept of quality, TQM, provides incentives for
employees to identify quality problems. Employees are
rewarded for uncovering quality problems, not punished.
 Workers are empowered to make decisions relative to quality in
the production process. They are considered a vital element of
the effort to achieve high quality. Their contributions are highly
valued, and their suggestions are implemented. In order to
perform this function, employees are given continual and
extensive training in quality measurement tools.
Employee Empowerment (Contd..)
 To further stress the role of employees in quality, TQM
differentiates between external and internal customers.
 External customers are those that purchase the company’s
goods and services.
 Internal customers are employees of the organization who
receive goods or services from others in the company. For
example, the packaging department of an organization is an
internal customer of the assembly department.
 Just as a defective item would not be passed to an external
customer, a defective item should not be passed to an
internal customer.
Team Approach
 TQM stresses that quality is an organizational effort.
To facilitate the solving of quality problems, it places
great emphasis on teamwork. Using techniques such
as brainstorming, discussion, and quality control
tools, teams work regularly to correct problems.
 The contributions of teams are considered vital to the
success of the company. Teams vary in their degree
of structure and formality, and different types of
teams solve different types of problems.
Quality Circles (QC)
 One of the most common types of teams is the quality
circle, a team of volunteer production employees and their
supervisors whose purpose is to solve quality problems.
The circle is usually composed of eight to ten members,
and decisions are made through group consensus.
 The teams usually meet weekly during work hours in a
place designated for this purpose. They follow a preset
process for analyzing and solving quality problems. Open
discussion is promoted, and criticism is not allowed.
 Although the functioning of quality circles is friendly and
casual, it is serious business. Quality circles are not mere
“gab sessions.” Rather, they do important work for the
company and have been very successful in many firms.
Quality Circles
 Team approach
• List reduction
• Choosing a movie with friends on a Friday night
• Balance sheet
• Choosing an apartment to stay, pros and cons of each option
• Paired comparisons
• Eliminate alternatives by comparison
• Portland beats Nicks, Nicks beat Lakers,
• Can Portland beat Lakers?
• Transitivity relation assumed among pairs
 Chapter 8
Problem Solving
Basic Steps in Problem Solving
 Define the problem and establish an improvement
goal
 Collect data
 Analyze the problem
 Generate potential solutions
 Choose a solution
 Implement the solution
 Monitor the solution to see if it accomplishes the goal
• Problem: How to improve free-throw percentage?
 The PDSA / PDCA Cycle
Plan Document process
Collect and analyze data
Develop a plan

Act
Standardize successful method,
revise unsuccessful plan

Do
Implement plan
Collect data for evaluation
Study
Using data to check: results match the goal?
Basic Quality Control Tools
 Flowcharts
 Check sheets
 Histograms
 Pareto Charts
 Scatter diagrams
 Control charts
 Cause-and-effect diagrams
 Run charts
Check Sheet
Billing Errors Monday
Wrong Account

Wrong Amount

A/R Errors

Wrong Account

Wrong Amount
Histograms
A bar chart of the frequency of outcomes
Pareto Analysis Example:
Problems with printing name tags
 Pareto Analysis Example:
Problems with printing name tags
Number of defects

Off Smeared Missing Loose Other

center print label
Pareto Diagram
A Scatter Diagram
100
90
80
70
60
Sales in East
50
40 Sales in West
30
20
10
0
0 2 4 6
Scatter diagram

Determine the correlation between quality and

operations factors
Control Chart
1020
UCL
1010

1000

990
LCL
980

970
0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
Help detect the correctable causes of
variations
Cause-and-Effect Diagram or
Fishbone diagram
Methods Materials
Cause
Cause
Cause
Cause
Cause Cause
Environment Effect
Cause Cause

Cause Cause
Cause Cause

People Equipment
Run Chart
0.58
0.56
Diameter

0.54
0.52
0.5
0.48
0.46
0.44
1 2 3 4 5 6 7 8 9 10 11 12
T im e (Ho urs )
Time (Hours)
 Chapter 9

Benchmarking
Bench Marking (BM)
Benchmarking is a systematic method by which
organization can measure themselves against the best
industry practices.
Essence of BM is the process of borrowing ideas and
adapting them to gain competitive advantage.
Reasons for Bench Marking
 To achieve Business & Competitive Objectives.
 Goals & Objectives Based on External Environment.
 Cost Efficient.
 Continuous Improvement & New Development.
Benchmarking Processes
 Identify a critical process that needs improving
 Identify an organization that excels in this process
• Not necessarily from the same industry
 Contact that organization
• Confidentiality is important
 Analyze the data
 Improve the critical process

Benchmarking numbers is much more common than

benchmarking processes
Bench Marking Process
Phases S.no Steps
Planning 1 Earmark what is to be Bench Marked ?

2 Identify the best competitor

3
Determine the data collection method and
start collecting data

Analysis 4 Determine the current performance GAP

5 Project future performance levels

Bench Marking Process
Phases S.no Steps
Integration 6 Communicate bench mark findings and gain
acceptance

7 Establish Functional Goals

Action
8 Develop Action Plans

9 Implement specific actions and monitor Progress

Bench Marking Process
Phases S.no Steps

Maturity 10 Recalibrate Benchmarks

11 Attain the Leadership position

12 Integrate Practice into the Process

 Generation of Benchmark
10. Self Bench Marking
9. Values Bench Marking
8. Quality of Life Bench Mark

7. Seventh Generation ERP Bench Marking

6. Sixth Generation Intrapreneual Bench Marking

5. Fifth Generation Global Bench Marking

4. Fourth Generation Strategic Bench Marking
3. Third Generation Process Bench Marking
2. Second Generation Competitive Bench Marking
1. Reverse Bench Marking( product)
First Generation
Reasons For Bench Mark
 Defining Customer Requirements
 Establish Goals and Objectives
 Measures of Productivity
 Becoming Competitive
 Industry best practices to be achieved
Types of Bench Mark
 Internal B M
E.g. Eicher Tractor Comparison Between Units
 Competitive B M
Direct Product Competitors
 Functional B M
E.g. Best Logistics from same industries (or) Any industries
 Generic B M
Same process or functions like Customer service, order entry,
regardless of industries .
Benefits of BM
• Best Practices incorporated into the process
• Motivation for creativity & innovation
• Technological Breakthrough in one’s industry
• Better professional growth
• Meet effectively customer requirements
• Assist in attaining competitive position
 Chapter 10

Quality systems
Introduction (ISO)
 Today, more and more business and industry
leaders realize that in order to thrive, or even
survive, in the new global economy, their companies
must become truly world-class.
 And that means quality. Quality in your products and
services. Quality in your practices and procedures.
Quality you maintain and you can prove - because it
is documented.
What does the term "ISO" stand for?
 The term ISO stands for the International
Organization for Standardization. You would
reasonably assume that it ought to be IOS, but it
isn't. Apparently, the term ISO was chosen (instead
of IOS), because iso in Greek means equal, and ISO
wanted to convey the idea of equality - the idea that
they develop standards to place organizations on an
equal footing.
History of ISO
 The International Standards Organization (ISO), in
Geneva, Switzerland, was founded in 1946 to
develop a common set of standards in
manufacturing, trade and communications.
 It is composed of the national standards institutes
and organizations of 97 countries worldwide,
including the American National Standards Institute
(ANSI).
History of ISO (Contd…)
 The ISO publishes thousands of standards, but the
ISO 9000 series is having a major impact on
international trade.
 First published in 1987, the standards have been
rapidly adopted by organizations in Europe, Asia and
North America. In addition, there is a movement by
several industries in the EEC where ISO certification
is now a prerequisite to product certification. And that
trend is growing.
History of ISO (Contd…)
 The standards have been endorsed by the American
Society of Quality Control, the European Standards
Institutes, and by the Japanese Industrial Standards
Committee.
 In the U.S., the American Society for Quality Control
runs the Registrar Accreditation Board (RAB), which
is accountable to ISO when it comes to certification.
The RAB has recognized over 40 certification bodies
that have trained certified auditors.
ISO Standards
ISO standards specify the requirements
 for state-of-the-art products, services,

 processes, materials and systems,

 and for good conformity assessment,

 managerial and organizational practice

What exactly is ISO 9000?
 Documentation is at the core of ISO 9000 conformance. In fact, the
standards have been described as this:
 "Say what you do. Do what you say. Write it down.“
 ISO 9000 is a set of international standards for both quality management
and quality assurance that has been adopted by over 90 countries
worldwide.
 The ISO 9000 standards apply to all types of organizations, large and
small, and in many industries.
What exactly is ISO 9000?
 The standards require:
• A standard language for documenting quality
practices.
• A system to track and manage evidence that these
practices are instituted throughout the organization.
• A third-party auditing model to review, certify and
maintain certification of organizations.
What exactly is ISO 9000?
 The ISO 9000 series classifies products into generic
product categories: hardware, software, processed
materials and services.
• ISO 9000 - Explains fundamental quality concepts and
provides guidelines for the selection and application of
each standard.
• ISO 9001 - Model for quality assurance in design,
development, production, installation and servicing.
• ISO 9004 - Guidelines for the applications of standards
in quality management and quality systems.
What exactly is ISO 9000?
 The ISO 9000 series classifies products into generic
product categories: hardware, software, processed
materials and services.
• ISO 9000 - Explains fundamental quality concepts and
provides guidelines for the selection and application of
each standard.
• ISO 9001 - Model for quality assurance in design,
development, production, installation and servicing.
• ISO 9004 - Guidelines for the applications of standards
in quality management and quality systems.
Basic functions of the ISO 9000
standards
 Simply stated, the ISO 9000 standards define "quality" in
ways that have been recognized and accepted worldwide.
 The goal is to increase customer confidence in the quality
system used by their suppliers. The standards are
designed to:
• Establish consistent language and terminology
• Provide baseline quality practices that are accepted
internationally
• Reduce the need for costly on-site supplier assessments
Purpose
 ISO's purpose is to facilitate international trade by providing a single
set of standards that people everywhere would recognize and
respect.
 The purpose of ISO 9001 is to assure customers that suppliers can
provide quality products and services.
 You need to control the quality of your products and services.
 You need to reduce the costs associated with poor quality.
 Your customers want you to become certified.
 Your markets expect you to be certified.
 Your competitors are already certified
ISO 9000 Quality Management
Principles
A systems approach to management
 Continual improvement
 Factual approach to decision making
 Mutually beneficial supplier relationships
 Customer focus
 Leadership
 People involvement
 Process approach
Why is ISO 9000 Important?
 ISO 9000 is important because of its orientation.
 ISO 9000 is important because of its international
orientation. .
 ISO is also important because of its systemic
orientation.
Need of ISO
 Many manufacturers even have to undergo customer-driven
"quality audits," which can be expensive and time-consuming.
 ISO 9000 practically eliminates the need for many customer-
driven quality programs.
 ISO 9000 certification is a uniform standard, accepted and
recognized internationally. So you save money.
 you begin to accrue benefits even before you achieve ISO 9000
certification.
 The preparation for ISO 9000 registration involves a close
analysis of your existing quality systems.
 ISO 9000 can improve overall business efficiency
Need of ISO (Contd…)
 ISO 9000 can ensure timely, accurate, accessible
information
 ISO 9000 can help you develop "best practices" and
eliminate costly surprises
 ISO 9000 improves the quality of your information
ISO Series
ISO 9001
Design Control and Service

ISO 9002
Purchasing,Contracting
Process control

ISO 9003
Production,
inspection, testing

ISO 14000
Environmental issues
 Chapter 11
Advanced
Techniques of TQM
INTRODUCTION

 Taguchi Methods is a statistical methods

developed largely by GENICHI TAGUCHI
to improve quality of manufactured goods.

 The philosophy of off-line quality control.

 Innovations in the design of experiments.

Taguchi Loss Function Definition

 Taguchi defines Quality as “the loss

imparted by the product to society from the
time the product is shipped.”

 LOSS = Cost to operate, Failure to

function, maintenance and repair cost,
customer satisfaction, poor design.
 Product to be produced “being within
specification”
 Taguchi’s Vs Traditional Approach

Taguch’s Traditional
When a product moves There is Good or Bad
from its Target will cause Products only as per Limits
the loss even if the product
lies or not within Limits
Taguchi’s Quadratic Quality Loss Function
 Quality Loss Occurs when a product’s
deviates from target or nominal value.
 Deviation Grows, then Loss increases.

 Taguchi’s U-shaped loss Function Curve.

Taguchi’s U-shaped loss Function Curve.

Taguchi loss Fn

Scrap or Rework Cost.

Loss

UTL Measured
LTL Nominal
characteristic
Formula to find Taguchi’s Loss Fn

 Taguchi uses Quadratic Equation to determine loss Curve

 L (x) = k (x-N)²

Where L (x) = Loss Function,

k = C/d² = Constant of proportionality, where C – Loss
associated with sp limit
d - Deviation of specification
from target value
x = Quality Features of selected product,
N = Nominal Value of the product and
(x-N) = Tolerance
Thanks