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TOTAL QUALITY MANAGEMENTTOTAL QUALITY MANAGEMENT

MUST KNOW CONCEPTS FOR ENGINEERSMUST KNOW CONCEPTS FOR ENGINEERS

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Sequence of presen!"onSequence of presen!"on

IntroductionIntroduction

Three Quality GurusThree Quality Gurus

Commonality of Themes of Quality GurusCommonality of Themes of Quality Gurus

DIFINITION OF QUALITY Fie A!!roaches of Definin" QualityFie A!!roaches of Definin" Quality

#ystem A!!roach for TQ$#ystem A!!roach for TQ$

Trian"le of %isdomTrian"le of %isdom

TQO &'$TQO &'$ Customer #atisfactionCustomer #atisfaction

Indicators for Customer #atisfactionIndicators for Customer #atisfaction

Cost of QualityCost of Quality

(enefits of TQ$(enefits of TQ$ Conclusion

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INTRO#UCTION TO TQMINTRO#UCTION TO TQM

W$! "s TQM%W$! "s TQM%

TQ$ is the inte"ration of all functions and !rocesses %ithin anTQ$ is the inte"ration of all functions and !rocesses %ithin an

or"ani)ation in order to achieeor"ani)ation in order to achiee continuous im!roementcontinuous im!roement ofofthe *uality of "oods and serices+ Thethe *uality of "oods and serices+ The "oal is customer"oal is customer

satisfaction+satisfaction+

No dou,t - humans are al%ays deficient.No dou,t - humans are al%ays deficient.

/Al0Quran1/Al0Quran1

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T$e T$ree Qu!&"' GurusT$e T$ree Qu!&"' Gurus

#e("n)*#e("n

)* the ,est 2no%n of the early. !ioneers- isthe ,est 2no%n of the early. !ioneers- iscredited %ith !o!ulari)in" *uality control in 3a!an in earlycredited %ith !o!ulari)in" *uality control in 3a!an in early

4567s+Today- he is re"arded as a national hero in that4567s+Today- he is re"arded as a national hero in thatcountry and is the father of the %orld famous Demin" !ri)ecountry and is the father of the %orld famous Demin" !ri)e

for *uality+for *uality+

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+URAN+URAN

3uran- li2e Demin" %as inited to 3a!an in 4568 ,y the3uran- li2e Demin" %as inited to 3a!an in 4568 ,y theunion of 3a!anese #cientists and en"ineers+union of 3a!anese #cientists and en"ineers+

3uran defines *uality as fitness for use in terms of desi"n-3uran defines *uality as fitness for use in terms of desi"n-conformance- aaila,ility- safety and field use+ &e focusesconformance- aaila,ility- safety and field use+ &e focuseson to!0do%n mana"ement and technical methods rather thanon to!0do%n mana"ement and technical methods rather than%or2er !ride and satisfaction+%or2er !ride and satisfaction+

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P$"&"p Cros,'P$"

&"p Cros,'** author of !o!ular ,oo2 Qualityauthor of !o!ular ,oo2 Quality

is Free+ &is a,solutes of *uality are9is Free+ &is a,solutes of *uality are9

Quality isQuality is -ef"ne--ef"ne- as conformance to re*uirements- notas conformance to re*uirements- not

"oodness."oodness.

TheThe s'se(s'se( for achiein" *uality is !reention- notfor achiein" *uality is !reention- nota!!raisal+a!!raisal+

The !erformanceThe !erformance s!n-!r-s!n-!r-is )ero defects- not that:s closeis )ero defects- not that:s close

enou"h.enou"h.

TheThe (e!sure(en(e!sure(en of *uality is the !rice of non0of *uality is the !rice of non0conformance- not inde;es+conformance- not inde;es+

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Co((on!&"' of T$e(es of Qu!&"' GurusCo((on!&"' of T$e(es of Qu!&"' Gurus

Ins!ection is neer the ans%er to *uality im!roement- norIns!ection is neer the ans%er to *uality im!roement- noris !olicin".+is !olicin".+

Inolement of leadershi! and to! mana"ement is essentialInolement of leadershi! and to! mana"ement is essentialto the necessary culture of commitment to *uality+to the necessary culture of commitment to *uality+

A !ro"ram for *uality re*uires or"ani)ation0%ide effortsA !ro"ram for *uality re*uires or"ani)ation0%ide efforts

and lon" term commitment- accom!anied ,y the necessaryand lon" term commitment- accom!anied ,y the necessaryinestment in trainin"+inestment in trainin"+

Quality is first and schedules are second+Quality is first and schedules are second+

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#IFINITION OF QUALITY#IFINITION OF QUALITY

The conce!t and oca,ulary of *uality are elusie+ DifferentThe conce!t and oca,ulary of *uality are elusie+ Different!eo!le inter!ret *uality differently+ Fe% can define *uality!eo!le inter!ret *uality differently+ Fe% can define *ualityin measura,le terms that can ,e !roed o!erationali)ed+in measura,le terms that can ,e !roed o!erationali)ed+

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F".e Appro!c$es of #ef"n"n) Qu!&"'F".e Appro!c$es of #ef"n"n) Qu!&"'

&arard !rofessor Daid Garin- in his ,oo2&arard !rofessor Daid Garin- in his ,oo2Managing QualityManaging Qualitysummari)ed fie !rinci!alsummari)ed fie !rinci!ala!!roaches to define *uality+a!!roaches to define *uality+

TranscendentTranscendent >roduct ,ased>roduct ,ased

User ,asedUser ,ased $anufacturin" ,ased$anufacturin" ,ased ?alue ,ased?alue ,ased

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PRO#UCT 0ASE#PRO#UCT 0ASE#

Quality is ie%ed as a *uantifia,le or measura,leQuality is ie%ed as a *uantifia,le or measura,le

characteristic or attri,ute+ For e;am!le dura,ility orcharacteristic or attri,ute+ For e;am!le dura,ility or

relia,ility can ,e measured and the en"ineer can desi"n torelia,ility can ,e measured and the en"ineer can desi"n to

that ,enchmar2+that ,enchmar2+

Quality is determined o,ectiely+Quality is determined o,ectiely+

Althou"h this a!!roach has many ,enefits- it has limitationAlthou"h this a!!roach has many ,enefits- it has limitation

as %ell+

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USER 0ASE#USER 0ASE#

II is ,ased on idea that *uality is an indiidual matter andis ,ased on idea that *uality is an indiidual matter and!roducts that ,est satisfy their !references are those %ith the!roducts that ,est satisfy their !references are those %ith thehi"hest *uality+ This is rational a!!roach ,ut leads to t%ohi"hest *uality+ This is rational a!!roach ,ut leads to t%o

!ro,lems=!ro,lems= Consumer !reference ary %idely and it is difficult toConsumer !reference ary %idely and it is difficult toa""re"ate these !references into !roducts %ith %ide a!!eal+a""re"ate these !references into !roducts %ith %ide a!!eal+This leads to the choice ,et%een a niche strate"y or aThis leads to the choice ,et%een a niche strate"y or amar2et a""re"ation a!!roach %hich tries to identify thosemar2et a""re"ation a!!roach %hich tries to identify those

!roduct attri,utes that meet the needs of the lar"est num,er!roduct attri,utes that meet the needs of the lar"est num,erof consumers+of consumers+ Another !ro,lem concerns the ans%er to the *uestion AreAnother !ro,lem concerns the ans%er to the *uestion Are

*uality and customer satisfaction the sameB. the ans%er is*uality and customer satisfaction the sameB. the ans%er is!ro,a,ly not+ One may admit that a Lincoln continental has!ro,a,ly not+ One may admit that a Lincoln continental has

many *uality attri,ute- ,ut satisfaction may ,e ,ettermany *uality attri,ute- ,ut satisfaction may ,e ,etterachieed %ith an scort+achieed %ith an scort+

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MANUFACTURING 0ASE#MANUFACTURING 0ASE#

$anufacturin"0,ased definitions are concerned !rimarily$anufacturin"0,ased definitions are concerned !rimarily%ith en"ineerin" and manufacturin" !ractices and use the%ith en"ineerin" and manufacturin" !ractices and use theuniersal definition of conformance to re*uirements.+uniersal definition of conformance to re*uirements.+

'e*uirements or s!ecifications are esta,lished ,y desi"n'e*uirements or s!ecifications are esta,lished ,y desi"nand any deiation im!lies a reduction in *uality+ Theand any deiation im!lies a reduction in *uality+ Theconce!t a!!lies to serices as %ell as !roduct+ ;cellence inconce!t a!!lies to serices as %ell as !roduct+ ;cellence in*uality is not necessarily in the eye of the ,eholder ,ut*uality is not necessarily in the eye of the ,eholder ,utrather in the standards set ,y the or"ani)ation+rather in the standards set ,y the or"ani)ation+

This a!!roach has the serious %ea2ness+ The consumer:sThis a!!roach has the serious %ea2ness+ The consumer:s!erce!tion of *uality is e*uated %ith conformance and!erce!tion of *uality is e*uated %ith conformance andhence is internally focused+hence is internally focused+

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1!&ue 0!se-1!&ue 0!se-

It is defined in term of costs and !rices as %ell asIt is defined in term of costs and !rices as %ell asnum,er of other attri,utes+ Thus- the consumer:snum,er of other attri,utes+ Thus- the consumer:s

!urchased decision is ,ased on *uality at an!urchased decision is ,ased on *uality at an

acce!ta,le !rice+ This a!!roach is reflected in theacce!ta,le !rice+ This a!!roach is reflected in the!o!ular!o!ular Consumer ReportsConsumer Reports ma"a)ine %hich ran2sma"a)ine %hich ran2s!roducts and serices ,ased on t%o criteria9 Quality!roducts and serices ,ased on t%o criteria9 Qualityand ?alue+and ?alue+

The hi"hest *uality is not usually the ,est alue+The hi"hest *uality is not usually the ,est alue+That desi"nation is assi"ned to the ,est0 ,uy.That desi"nation is assi"ned to the ,est0 ,uy.

!roduct or serice!roduct or serice..

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MANAGEMENTMANAGEMENT

OF PROCESSOF PROCESS

QUALITYQUALITY

HUMANHUMAN

RESOURCERESOURCE

DEVELOPMENTDEVELOPMENT

ANDAND

MANAGEMENTMANAGEMENT

STRATEGICSTRATEGIC

QUALITYQUALITY

PLANNINGPLANNING

INFORMATIONINFORMATION

AND ANALYSISAND ANALYSIS

CUSTOMERFOCUSAND

SATISFACTION

QUALITYAND

OPERATIONALRESULTS

SENIOR

EXECUTIVELEADERSHIP

S'se( Appro!c$ for TQM

Driver

System

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TOWTOW

Tr"!n)&e of /"s-o(Tr"!n)&e of /"s-o(

LM

#M KM

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C$!r!cer"s"cs of TQM Le!-erC$!r!cer"s"cs of TQM Le!-er

?isi,le- Committed and no%led"ea,le?isi,le- Committed and no%led"ea,le

A $issionary EealA $issionary Eeal

A""ressie Tar"etsA""ressie Tar"ets

#tron" Driers#tron" Driers

Communication of ?aluesCommunication of ?alues Or"ani)ationOr"ani)ation

Customers ContactCustomers Contact

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TQO 2RMTQO 2RM

Fie >rinci!les are9Fie >rinci!les are9

QualityQuality

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Cuso(er S!"sf!c"onCuso(er S!"sf!c"on

Three >art #ystemThree >art #ystem

2u(!n Resource

M!n!)e(enCuso(er E3pec!"ons

Co(p!n' Oper!"ons

4Processes5

Cuso(er S!"sf!c"on

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In-"c!ors for Cuso(er S!"sf!c"onIn-"c!ors for Cuso(er S!"sf!c"on

Frontline em!o%ermentFrontline em!o%erment ;cellent hirin"- trainin"- attitude and morale for front line;cellent hirin"- trainin"- attitude and morale for front line

em!loyeesem!loyees

>roactie customer serice system>roactie customer serice system >roactie mana"ement of relationshi! %ith customers>roactie mana"ement of relationshi! %ith customers Use of all listenin" !ostsUse of all listenin" !osts Quality re*uirements of mar2et se"mentQuality re*uirements of mar2et se"ment

Commitment to customersCommitment to customers Understandin" customer re*uirementsUnderstandin" customer re*uirements #erice standards meetin" customers re*uirements#erice standards meetin" customers re*uirements

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Cos of Qu!&"'Cos of Qu!&"'

T$ree 1"e/s of qu!&"' CossT$ree 1"e/s of qu!&"' Coss

2")$er qu!&"' (e!ns $")$er cos62")$er qu!&"' (e!ns $")$er cos6 Quality attri,utes such as !erformance and features cost more inQuality attri,utes such as !erformance and features cost more in

terms of la,or- material- desi"n and other costly resources+terms of la,or- material- desi"n and other costly resources+

The additional ,enefits from im!roed *uality do not com!ensateThe additional ,enefits from im!roed *uality do not com!ensatefor additional e;!ense+for additional e;!ense+

T$e cos of "(pro."n) qu!&"' "s &ess $!n $e resu&"n) s!."n)s6T$e cos of "(pro."n) qu!&"' "s &ess $!n $e resu&"n) s!."n)s6 The sain" result from less re%or2- scra! and other direct e;!ensesThe sain" result from less re%or2- scra! and other direct e;!enses

related defects+related defects+ This is said to account for the focus on continuous im!roement ofThis is said to account for the focus on continuous im!roement of

!rocesses in 3a!anese firms+!rocesses in 3a!anese firms+

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Qu!&"' CossQu!&"' Coss

COST OFCOST OF QUALITYQUALITY IS T2E COST OFIS T2E COST OF

NON QUALITYNONQUALITY

9* 9:*9:: Ru&e9* 9:*9:: Ru&e

;;A s"c$ "n "(e s!.es n"neA s"c$ "n "(e s!.es n"ne

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T'pes of Qu!&"' CossT'pes of Qu!&"' Coss

The cost of *uality is "enerally classifiedThe cost of *uality is "enerally classified

into four cate"oriesinto four cate"ories

4+4+ Cost of >reentionCost of >reention

++ Cost of A!!raisalCost of A!!raisal

++ Cost of Internal FailureCost of Internal Failure

8+8+ Cost of ;ternal FailureCost of ;ternal Failure

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Qu!&"' CossQu!&"' Coss

Cos of Pre.en"onCos of Pre.en"on

>reention costs include those actiities %hich remoe and>reention costs include those actiities %hich remoe and!reent defects from occurrin" in the !roduction !rocess+!reent defects from occurrin" in the !roduction !rocess+

Included are such actiities as *uality !lannin"- !roductionIncluded are such actiities as *uality !lannin"- !roductionreie%s- trainin"- and en"ineerin" analysis- %hich arereie%s- trainin"- and en"ineerin" analysis- %hich areincurred to ensure that !oor *uality is not !roduced+incurred to ensure that !oor *uality is not !roduced+

Appr!"s!&Appr!"s!&

Those costs incurred to identify !oor *uality !roducts afterThose costs incurred to identify !oor *uality !roducts afterthey occur ,ut ,efore shi!ment to customers+ e+"+ Ins!ectionthey occur ,ut ,efore shi!ment to customers+ e+"+ Ins!ectionactiityactiity66

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Qu!&"' CossQu!&"' Coss

Inern!& F!"&ureInern!& F!"&ure

Those incurred durin" the !roduction !rocess+Those incurred durin" the !roduction !rocess+ Include such items as machine do%ntime- !oor *ualityInclude such items as machine do%ntime- !oor *ualitymaterials- scra!- and re%or2+materials- scra!- and re%or2+

E3ern!& F!"&ureE3ern!& F!"&ure Those incurred after the !roduct is shi!!ed+Those incurred after the !roduct is shi!!ed+

;ternal failure costs include returns and allo%ances-;ternal failure costs include returns and allo%ances-%arranty costs- and hidden costs of customer dissatisfaction%arranty costs- and hidden costs of customer dissatisfactionand lost mar2et shareand lost mar2et share++

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0enef"s of TQM0enef"s of TQM

Greater customer loyaltyGreater customer loyalty

$ar2et share im!roement$ar2et share im!roement

&i"her stoc2 !rices&i"her stoc2 !rices 'educed serice calls'educed serice calls

&i"her !rices&i"her !rices

Greater !roductiityGreater !roductiity

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Conc&us"onConc&us"on

'emem,er the earth reoles around the'emem,er the earth reoles around the

CU#TO$'+CU#TO$'+ Quality ,e"ets customers andQuality ,e"ets customers and

customers ,e"et *uality+ Let us all hae actioncustomers ,e"et *uality+ Let us all hae action!lans to su!!ort *uality- this %ill ma2e the!lans to su!!ort *uality- this %ill ma2e the

%orld ha!!y and earn us the ,lessin" of God%orld ha!!y and earn us the ,lessin" of God

Almi"hty+Almi"hty+

;;Ac"ons !re -"rec ref&ec"on of one