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INTRODUCTION
Deming and Juran introduced statistical quality control
to Japanese workers after WW II, as a part of General
Mc. Arthurs rebuilding programme. Although this was
not much different from what was being done in
America, there was one vital difference. They
convinced top Japanese managers that quality
improvement would open new world markets and was
necessary for survival of their nations. The managers
believed and fully supported the concept of quality
improvement.
The Japanese were in ideal position to embrace
this philosophy. The country was devasted from the
war, and they had few natural resources with which to
compete, except their people. During the next 20
years, while the Japanese were improving quality at an
unprecedented rate, quality levels in the west
remained stagnant. Western Manufacturers had little
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need to focus on quality. America had a virtual
monopoly in Manufacturing, and the Post war
economy was hungry for nearly any kind of consumer
good. Top managers focused their efforts on
Marketing, Production quantity and financial
performance.
Definition and Meaning :-
Total Quality Management is defined as an
integrated approach in delighting the customer (both
internal & external) by meeting their expectations on
a continuous basis, through every one involved with
the organization, working on continuous
improvement along with proper problem solving
methodology.
The term Customer refers to all those to whom we
supply a product, service or information. Thus apart
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from the ultimate users, the retailers, stockists and
transporters become the external customers to the
company. Departments within the company become
internal customers to each other. Thus the Production
department is a customer to the Purchase department
and the supplier to the sales and Dispatch
departments.
Total = Quality involves everyone and all activities
in the company.
Quality = Conformance to requirements (meeting
customer requirements)
Management = Quality can and must be managed.
TQM = a process for managing Quality; it must be a
continuous way of life; a philosophy of perpetual
improvement in every thing we do.
TQ M compared to ISO 9000 :-
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y Meeting Customers Requirements
y Reducing Development Cycles Times
y Just In Time/Demand Flow Manufacturing
y Improvement Teamsy Reducing Product and Service Cost
y Improving Administrative Systems Training
Principles of TQ M :-
The Principles of TQM are as follows:
1. Quality can and must be managed.
2. Everyone has a customer and is a supplier.
3. Processes, not people are the problem.
4. Every employee is responsible for quality.
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5. Problems must be prevented, not just fixed.
6. Quality must be measured.
7. Quality improvements must be continuous.
8. The quality standard is defect free.
9. Goals are based on requirements, not negotiated.
10. Plan and organize for quality improvement.
Elements of TQ M :-
Focus on Q uality and Prevention of Problems
Many definitions of quality exist. Quality can be
defined as consistently producing what the customer
wants while reducing errors before and after delivery
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to the customer. More importantly, however quality is
not so much an outcome as a never-ending process of
continually improving the quality of what your
computer produces.
Encourage the Proper Climate, Empower Employees
For continuous improvement to work, management
must empower employees, so they are willing to
innovate and act in an atmosphere of trust and
respect. All of the other components can be in place,
and TQM still fail. Employees motivated to improve
service to their customers with the climate allowing
them to do so is a potent combination.
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ACKNOWLEDGEMENT
I would like to express my gratitude for the people who
were part of this Project Report, directly or indirectly
people who gave unending support right from thestage the idea was conceived.
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TOTAL QUALITY MANAGEMENT
Total= Made up of whole Quality= Degree of excellence a
product/service provides Management= Act/art ( manner of
handling, controlling, directing, etc..). TQM is an art of
Managing the whole to achieve excellence. The basis of TQM
is to reduce the errors produced during the manufacturing or
service process, increase customer satisfaction, streamline
supply chain management, aim for modernization of
equipment and ensure workers have the highest level of
training. One of the principal aims of TQM is to limit errors to
1 per 1 million units produced. Total Quality Management is
often associated with the development, deployment, and
maintenance of organizational systems that are required for
various business processes.
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TQM focuses on quality at every level. An organization
that adopts TQM should be ready to implement
change. QUALITY is the BUZZ word in the domestic and
International markets. Organizations should review its
policies, practices and procedures in all areas of
management, keeping in mind that Quality is the way
of life and not a magic formula.
Q uality management can be considered to have three
main components: quality control, quality assurance
and quality improvement. Quality management is
focused not only on product/service quality, but also
the means to achieve it. Quality management
therefore uses quality assurance and control of
processes as well as products to achieve quality.
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Needs of TQ M :
Needs of TQM Rising Customer Expectations Increasing
Competitive Pressure Changing perceptions of customers
Internal pressure for improvement Managers and workforce
perceptions To survive in market.
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What does TQ M cover :
What does TQM cover: Makes an organization more
effective Establishes a new culture , which enables
growth and longevity. Provides a working environment
in which everyone can succeed. Reduces stress,
wastes. Build teams, partnerships and cooperation.
Basic Concepts of TQM :
Basic Concepts of TQM Set the goals and achieving
them. Customer satisfaction (unwavering focus)
Workforce participation. JIT, efficiency. Quality
orientation Quality improvement.
Success of TQ M :
Success of TQM Reduction in complaints Involvement
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of all the work force Recognition by the customers
Improved attitudes at & to work Reduction in errors
Increases productivity Problem solving tool.
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QUALITY
QUALITY Excellent product that fulfills or exceeds our
expectations. Degree of excellence a product provides.
The result of care. It is what the customer gets out & is
willing to pay for. The product free of
deficiencies/defects. Superior or high rank.
QUALITY Quality= Performance/Expectation. If
Quality > 1 (customer has good feeling about the
product) .
Performance/Expectation are based upon perception.
Dimensions of Q uality :
Dimensions of Quality Performance (Primary Product
Characteristic) Features (Secondary Product
Characteristic) Durability Service Response Reputation
Conformance Aesthetics Reliability
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PRINCIPLES
Quality management adopts a number of management
principles[2]
that can be used by upper management to
guide their organisations towards improved
performance. The principles cover:
Customer focus
Leadership Involvement of people
Process approach
System approach to management
Continual improvement
Factual approach to decision making
Mutually beneficial supplier relationships
Customer & TQ M :
Customer & TQM The word Customer derives from
CUSTOM meaning habit. (needs, requirements,
wants, desires) as how to fulfill these.. TQM does not
occur overnight, there are no quick remedies. TQM
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focuses on quality at every level. An org. that adopts
TQM should be ready to implement change An orgs
success depends on how many customers it has, how
much they buy & how often they buy.
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Service Quality Gap Model
1.CUSTOMER EXPECTATION (UNDERSTANDING HE
CUSTOMER) (GAP 1)
2. MANAGEMENT (TRANSFORMING THE CUSTOMER
EXPECTATION/PERCEPTION = SERVICE DESIGN) (GAP 2)
3.SERVICE STANDARDS ( CONFORMANCE) (GAP 3)
4.SERVICE DELEIVERY (COMMUNICATION) (GAP 4)
5.CUSTOMER PERCEPTION (CUSTOMER SATISFACTION)
(GAP 5) SERVICE = to carry out the orders of customers
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The five gaps that organizations should measure,
manage and minimize:
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y Gap 1 is the distance between what customers
expect and what managers think they expect
Clearly survey research is a key way to narrow this
gap.
y Gap 2 is between management perception and the
actual specification of the customer experience
Managers need to make sure the organization isdefining the level of service they believe is needed.
y Gap 3 is from the experience specification to the
delivery of the experience - Managers need to
audit the customer experience that their
organization currently delivers in order to make
sure it lives up to the spec.
y Gap 4 is the gap between the delivery of the
customer experience and what is communicated
to customers - All too often organizations
exaggerate what will be provided to customers, or
discuss the best case rather than the likely case,
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raising customer expectations and harming
customer perceptions.
y Finally, Gap 5 is the gap between a customer's
perception of the experience and the customer's
expectation of the service - Customers'
expectations have been shaped by word of mouth,
their personal needs and their own pastexperiences. Routine transactional surveys after
delivering the customer experience are important
for an organization to measure customer
perceptions of service.
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Costs of Q uality
1.COST OF CONFORMANCE (UNAVOIDABLE COST) :- It
is an unavoidable cost such as prevention and appraisal
cost.
Prevention Cost = to investigate, prevent or reduce
errors etc.e.g. cost of planning, training..
Appraisal Cost = cost of assessing the quality achieved.
e.g. cost of inspection/testing, audit..
2. COST OF NON-CONFORMANCE (AVOIDABLE COST)
:- It is avoidable cost which can be avoided during
tests, manufacturing etc. It is of two types internal and
external failure cost.
Internal Failure Cost = Cost arising within the
manufacturing. e.g. re-inspection, scrap, re-work,re-
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design, modification, overtime.
External Failure Cost = Cost arising outside the
manufacturing. e.g.replacement, equipment failure,
loss of goodwill.
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Historical Review & Japanese Success / Indian
success :
Historical Review & Japanese Success / Indian success
History of Quality Control is as old as industry itself The
concept of specialization was introduced during
Industrial Revolution, as a result a worker no longer
made the entire product, only a portion. In 1924, W.A.
Shewart developed a Statistical Chart for the control of
product variables. In 1946, the American Society for
Quality Control was formed. Recently the name was
changed to American Society for Quality (ASQ). This
organization through publications, conferences,
training, sessions, lectures etc.. Has promoted the use
of quality for all types of production. Japanese set the
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quality standards for the rest of the world. In 1960,
Quality Improvement Techniques were applied by
Japanese workers. 1970s & 1980s = American
managers, engineers.. Visited Japan to learn about the
Japanese Miracle. 1990 onwards ISO ( International
Organization for Standardization) is gaining popularity
for its Quality Management System.
Historical Review & Japanese Success / Indian success
World renowned TQM expert Prof. Washio has
predicated that the quality of Indian manufacturing will
overtake that of Japan in 2020. Indian companies are
good at quality, its time they formulate strategies.
Many Indian companies have got Deming prize (In
1951 JUSE=Japanese Union of Scientists & Engineers,
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started the DEMING PRIZE because Dr. Deming
donated the earnings from the sale of his papers to
JUSE).. So far China has not even entered the DEMING
Radar.
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MANAGEMENT TECHNIQUES
1. NOMINAL GROUP TECHNIQUE (NGT)
2. BRAIN STORMING
3. DELPHI METHOD
1. Nominal Group Technique (NGT) :It is a Group
Creativity Technique. Issues/ Ideas from every
member of the team is put for effective decision. It
takes 2 hours or so to complete the activity. E.g. A
team wants to decide which problem to work
upon, every members writes on a piece of paper
the problem they think is most important. All the
papers are collected and all the problems are
listed on the chart, then each member of the team
uses another piece of paper to rank the problem
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from least important to most important. 1 for Min.
Points for each problem are totaled and the item
with highest no. of points is considered to be the
most important.
2. Brain Storming :It is a Group Creativity
Technique designed to generate a large no. of
ideas for the solution of the problem. It takes less
time. Brain Storming is most effective with group
of 8-12 people and should be performed in a
relaxed environment. Brain Storming session tries
to extract max. no. of ideas in a shortest possible
time.
4 Basic rules in Brain Storming :
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Brain Storming Focus on Quantity, Withhold Criticism
Welcome Unusual Ideas, Combine and Improve Ideas.
Steps of Brain Storming
Define a problem as a creative CHALLENGE Give a time
limit, say 25 minutes to think solution for the problem
Once the Brain Storming starts, participants shout out
solutions/ideas & then write them on white board etc.,
for all to see. Criticism is not to be encouraged,
Laughing /jokes is to be encouraged.. No cross
questioning, no interpretations, no judgments, no
evaluations etc.. Make sure everyone involved in Brain
Storing Session is in agreement Finding which
idea/solution best solves the problem, score each
idea/solution from least important to most important.
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1 for Min. The Idea/Solution with the highest score will
best solve the problem. But should keep record of
other best ideas/solutions as well, in case the best
idea/solution does not work.
DELPHI METHOD :
The procedure is same as that of Brain Storming but
with the inclusion of an EXPERT, who puts his/her
opinions/ findings in front of the members of the
group.
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7 MANAGEMENT TOOLS :
1. Affinity Diagram
2. Interrelationship Diagraph
3. Tree Diagram
4. Prioritization Matrix
5. Matrix Diagram
6. Process Decision Program Chart (PDPC)
7. Activity Network Diagram
1. Affinity Diagram :Unstructured to useful way
Generates large number of ideas/issues & then
logically group them for problem understanding &
possible break through solution. Large groups to be
divided into smaller groups with appropriate
headings. This tool takes large amounts of
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disorganized data and information and enables one
to organize it into groupings. It was created in 1960
by Japanese Jiro Kawakita.
2. Interrelationship Diagraph : It is a visual display
that maps out the cause (links among complex
problems, identifies to focus on the desired
outcomes.) This tool displays all the interrelated
cause-and-effect relationships and factors involved
in a complex problem and describes desired
outcomes. The process of creating an
interrelationship diagraph helps a group analyze
the natural links between different aspects of a
complex situation.
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3. Tree Diagram : This tool is used to breakdown
broad categories into finer and finer levels of detail
Tree Diagram starts with 1 item that becomes into
2 or more branches and so on (so as to accomplish
the goal or task) It can map levels of details of
tasks that are required to accomplish the goal or
task. Procedure: a) Develop a statement of goal b)
What tasks must be done to accomplish them c) Do
a necessary & sufficient check. d) Try to reach to
the root cause Tree Diagram is used in strategic
decision making.
4. Prioritization Matrix : This tool is used to
prioritize items and describe them in terms of
weighted criteria. Generates a set of criteria for
quality decision. It aids in selecting which
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problems/ issues to pursue. Helps to rank problems
( Brain Storming/GD
s). Each member votes 3
times for each criteria (Frequency, Importance,
Feasibility) 3-Max & 1- Min. i.e. total
votes/person= 9 -The problem with maximum
points is taken first (prioritize) .
5. Matrix Diagram : This tool shows the
relationship between items. Facilitates the
strength (relationship) between 2 or more
elements/variables. It consists of table where rows
& cols.are interrelated . Useful in Decision Making.
Matrix Diagram shows the relationship and
encourages the team to think in terms of their
strengths. It allows the comparison of
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the tasks involved in completing a given project. It
is a method to analyze the involved tasks in
completing a given project, especially the TIME
needed to complete each task & to identify the
min. TIME needed to complete the total project. It
was developed primarily to simplify the planning &
scheduling of large and complex projects., e.g.
Railway Projects, Bridges, Airports, Flyovers etc
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STATISTICAL TOOLS
The word Statistics play an essential role in TQM. They
provide the raw materials to TQM, these materials
must be processed to be useful, just as crude oil must
be refined into petrol before it can be used by an
automobile engine.
MEAN :
It is obtained by adding all the terms and thus dividing
the result by no. Of terms
MEDIAN :
A median is described as the numeric value separating
the higher half of a sample, a population, or
a probability distribution, from the lower half.
Themedian of a finite list of numbers can be found by
arranging all the observations from lowest value to
highest value and picking the middle one. If there is an
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even number of observations, then there is no single
middle value; the median is then defined to be
the mean of the two middle values.
MODE :
Value that occurs in larger frequency
RANGE :
Measure of variation of items.
STANDARD DEVIATION :
In probability theory and statistics, the standard
deviation of a statistical population, a data set, or
a probability distributionis the square root of
its variance. Standard deviation is a widely used
measure of the variability or dispersion, being
algebraically more tractable though practically
less robust than the expected deviation or average
absolute deviation
CORELATION ANALYSIS :
Relationship between two variables.
SIMPLE REGRESSION :
In statistics, simple linear regression is the least
squares estimator of a linear regression model with a
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single predictor variable. In other words, simple linear
regression fits a straight line through the set of n points
in such a way that makes the sum of
squared residuals of the model (that is, vertical
distances between the points of the data set and the
fitted line) as small as possible.
PROBAB
ILITY DISTRIBUTION :
In probability theory and statistics, a probability
distribution identifies either the probability of each
value of a random variable (when the variable
is discrete), or the probability of the value falling within
a particular interval (when the variable
is continuous).[1]
The probability distribution describes
the range of possible values that a random variable can
attain and theprobability that the value of the random
variable is within any (measurable) subset of that
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range.
NORMAL DISTRIBUTION :
In probability theory and statistics, the normal
distribution, or Gaussian distribution, is an absolutely
continuous probability distribution whose cumulants of
all orders above two are zero. The graph of the
associated probability density function is bell-
shaped, with peak at the mean, and is known as
the Gaussian function or bell curve:
BINOMIAL DISTRIBUTION :
It is frequently used to model number of successes in a
sample of size n from a population of size N. Since the
samples are not independent (this is
sampling without replacement), the resulting
distribution is a hypergeometric distribution, not a
binomial one. However, for N much larger than n, the
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binomial distribution is a good approximation, and
widely used.
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DEMINGs PHILOSOPHY
DEMINGs PHILOSOPHY No Individual had more
influence on quality management than Deming FATHER
of Quality Revolution.
The Deming Chain Reaction :
The Deming Chain Reaction :- Improve Quality Costs
Decreases Productivity.
Increases Capture the market with better quality.
Stay in Business Provide Jobs & more jobs.
PDCA CYCLE :
PDCA CYCLE ORGINALLY CALLED SHEWART CYCLE P=
PLAN (FIND OPPURTUNITIES) D= DO (PUT INTO
ACTION) C= CHECK (CHECK THE RESULTS) A= ACT (IF
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THE RESULTS ARE POSTIVE, ADOPT THE PROPOSED
PLAN
Demings 14 Points :
1. Create constancy of purpose towards
improvement.
2. Adopt the new philosophy.
3. Cease dependence on mass inspection.
4. End the practice of awarding business on the basis
of price tag.
5. Find problems Institute training Institute modern
methods of supervision.
6. Drive out fear Break down barrier between
departments.
7. Eliminate numerical goals, posters, slogans etc.8. Eliminate numerical quotas.
9. Remove barriers between hourly worker and his
right of pride.
10. Institute a vigorous programmer of education
and retraining.
11. Push everyday on the above 13 points
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JURANs Philosophy :
JURANs Philosophy Coined the term FITNESS FOR USE
OF PURPOSE Identified problems in
ORGANIZATION,COMMUNICATION, & COORDINATION
OF FUNCTIONS. BELIEVED in 80-20 Principle
JURANs 10 Points : Build awareness of the need and
opportunity for improvement, set goals for
improvement, organize to reach the goals, provide
training, carry out projects to solve problems, report
progress, give recognition, communicate results, keep
score, maintain momentum
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CROSSBYs Philosophy
CROSSBYs Philosophy Best known for the concept of
ZERO DEFECTS DO IT RIGHT THE FIRST TIME Also
known for the concept of QUALITY IS FREE.
CrossBy has 4 absolutes of Q uality :
CrossBy has 4 absolutes of Quality Definition:
Conformance of requirements System.
Prevention Performance standard.
Zero defects Measurement.
Price of non-conformance
CrossBys 14 Points :
Make it clear that management is committed to quality
Form quality improvement teams. Determine where
current and potential problem lie. Evaluate the cost
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quality. Raise the quality awareness. Take actions to
correct problems. Establish committee for zero defects
program. Train supervisors. Hold a zero defects day.
Encourage individuals to establish improvement goals
Encourage employees to communicate to
management. Recognize and appreciate those who
participate. Establish quality councils to communicate
on regular basis. Do it all over again so that quality
improvement never ends.
Development of 4 Fitness :
Development of 4 Fitness Evolution of QUALITY
CONCEPT .
THE 4 FITNESSES ARE :
THE 4 FITNESSES ARE:-
FITNESS TO STANDARD (1950s) (company focus)
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FITNESS TO USE (1960s) (customer focus)
FITNESS TO COST (1970s) (company focus)
FITNESS TO LATENT REQUIREMENTS (1980s)
(customer focus)
Fitness to Standard :
Fitness to Standard Meeting the requirements of the
customer.
Fitness for Use :
Fitness for Use Effectiveness of a design .
Fitness to cost :
Fitness to cost Measurement and careful
identification of cost.
Fitness to latent requirements :
Fitness to latent requirements Customer delighters
(beyond the imagination of the expectation of the
customer)
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7 QC/SPC TOOLS :
The SevenB
asic Tools of Q uality is a designation given
to a fixed set of graphical techniques identified as
being most helpful in troubleshooting issues related
to quality.[1] They are called basic because they are
suitable for people with little formal training in
statistics and because they can be used to solve the
vast majority of quality-related issues.[2]
The tools are:[3]
The cause-and-effect or Ishikawa diagram
The check sheet
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The control chart
The histogram
The Pareto chart
The scatter diagram
Stratification (alternately flow chart or run chart)
HISTOGRAM :
A histogram is a graphical display of
tabular frequencies, shown as adjacent rectangles.
Each rectangle is erected over an interval, with an area
equal to the frequency of the observations in the
interval. The height of a rectangle is also equal to the
frequency density of the interval, i.e., the frequency
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divided by the width of the interval. The total area of
the histogram is equal to the number of data. A
histogram may also be based on relative frequencies. It
then shows the proportion of cases that fall into each
of severalcategories, with the total area equaling 1.
The categories are usually specified as consecutive,
non-overlapping intervals of a variable. The categories
(intervals) must be adjacent, and often are chosen to
be of the same size
PARETO CHART :
What is it: A special form of a bar chart which seeks
to determine the most important factors in a situation.
It is based on the idea that a few causes produce a vast
majority of variations. A rule of thumb says 20% of
causes account for 80% of variations.
When to use it: When you want to determine which
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corrective actions would yield the greatest quality
payback. A Pareto chart is a good way to set priorities
and to focus your quality efforts.
How to use it: Examine the data indicating the
frequency with which each cause of a problem occurs.
List them from most to least frequent. Plot them on a
bar graph. The left vertical scale indicates thefrequency that each bar represents. The right vertical
scale indicates the percentage of total occurrences that
is covered by the sum of the causes. For each cause,
add the per cent of problems that it accounts for to the
per cent accounted for by the causes to the left to it
and plot points against the right scale that represent
this total. Connect these points with a line.
CHECK SHEET :
The check sheet is a simple document that is used for
collecting data in real-time and at the location where
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the data is generated. The document is typically a
blank form that is designed for the quick, easy, and
efficient recording of the desired information, which
can be either quantitative or qualitative. When the
information is quantitative, the checksheet is
sometimes called a tally sheet.
A defining characteristic of a checksheet is that data is
recorded by making marks ("checks") on it. A typical
checksheet is divided into regions, and marks made in
different regions have different significance. Data is
read by observing the location and number of marks
on the sheet.
.
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CONTROL CHART :
What is it: A means of monitoring a process according
to tolerance limits. The chart allows you to track the
normal variations that indicate a process is in control
and to determine when it goes out of control. A
control chart is closely related to Statistical Process
Control. Its a visual means of representing whether a
process is within statistical limits.
When to use it: For any process with frequent and
measurable outcomes. A control chart enables you to
ignore changes in a process that are the result of
random variations and to react immediately to changes
that indicate a problem.
How to use it: Take a random sample of outcomes and
use statistical techniques to determine upper and
lower control limits. These are not the same as
specification tolerances. Rather, they are the values
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which, if the outcomes exceed them, indicate that the
outcomes are not the result of random variation, but
of some specific cause.
Once the control limits have been determined, plot the
outcomes over time or occurrence. If a value is
obtained that is outside the control limits, its
necessary to investigate the cause. If all the values arewithin the limits, then the process is under control.
FISHBONE DIAGRAM :
Ishikawa diagrams (also called fishbone
diagrams or cause-and-effect diagrams)
are diagrams that show the causes of a certainevent.
Common uses of the Ishikawa diagram are product
design and quality defect prevention, to identify
potential factors causing an overall effect. Each cause
or reason for imperfection is a source of variation.
Causes are usually grouped into major categories to
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identify these sources of variation. The categories
typically include:
People: Anyone involved with the process Methods: How the process is performed and the
specific requirements for doing it, such as policies,
procedures, rules, regulations and laws
Machines: Any equipment, computers, tools etc.
required to accomplish the job
Materials: Raw materials, parts, pens, paper, etc.
used to produce the final product Measurements: Data generated from the process
that are used to evaluate its quality
Environment: The conditions, such as location, time,
temperature, and culture in which the process
operates
FLOW CHART :
In statistics, stratified sampling is a method
of sampling from a population.
When sub-populations vary considerably, it is
advantageous to sample each subpopulation(stratum) independently. Stratification is the
process of grouping members of the population
into relatively homogeneous subgroups before
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sampling. The strata should be mutually exclusive:
every element in the population must be assigned
to only one stratum. The strata should also becollectively exhaustive: no population element
can be excluded. Then random or systematic
sampling is applied within each stratum. This
often improves the representativeness of the
sample by reducing sampling error. It can produce
a weighted mean that has less variability than
the arithmetic mean of a simple random sample of the
population.
SCATTER GRAPH/DIAGRAM :
A scatter plot or scattergraph is a type
of mathematical diagram using Cartesian
coordinates to display values for two variables for a set
of data.
The data is displayed as a collection of points, eachhaving the value of one variable determining the
position on the horizontal axis and the value of the
other variable determining the position on the vertical
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axis.[2]
This kind of plot is also called a scatter
chart , scatter diagram and scatter graph.
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Benefits of having TQ M
y Increased customer satisfaction and loyalty
y Gain a competitive advantage
y Large market share
y Elimination of scrap, waste, errors, etc
y Increase employee involvement
y Teamwork and co-operation
y Information sharing
y Enhanced customer requirements knowledge
y Standardized recommended award amounts
y Defined customer satisfaction issues
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y Examination of the strategic planning process
Common pitfalls leading to failure of TQ M
Overuse of process action teams
Some organizations treat process action teams like
candy: They want dessert before having dinner.
There has been a known case of 3000-person
organization with over 70 current process action teams
(PATs) working on a variety of issues. The organization
avoids measuring their success, provides them little
technical support, and still has not addressed the
systematic changes needed to support them. This
implementation strategy has a high risk of failure, and
TQM will probably not become an integral part of their
culture.
This problem occurs when an organization achieves
successes with its first teams or hears about wild
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successes of other companies.
Not making systematic changes
Management must realize that to fully implement
TQM, satisfy its customers, and promote teamwork in
the entire organization often wrenching systematic
changes must be made: Profit sharing may be
introduced; individual performance appraisals may be
radically changed or eliminated; organizational
structure may be realigned away from functions
(production, quality, engineering) to a customer; more
authority may be given to line employees.
Not making decisions up front
Many organizations need to design the architecture
of their quality effort. If they do not, they risk pouring
time and dollars into an effort that will eventually
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collapse. Among the decisions that should be made up-
front, before implementing a quality effort is: the
measures of success; the degree of employee
involvement; the depth and breadth of
implementation; and the techniques to be used. As
someone once said, If you dont know where you are
going, you may not like getting there.
Xerox Corporation using TQ M
In launching its Total Quality Management
programme, called Leadership through Quality, the
CEO of the company cited the fierce global
competition in the office machine business as the
motivator for making the fundamental changes at
Xerox to Total Quality in a $400 billion business. His
company had enjoyed a near monopoly status for
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the sale and rental of Photocopy machines until
1975. Five years later Xeroxs market share of
Photocopy machines had fallen to below 50% and
the firm had a over a 100 direct competitors for that
core part of their business.
Xerox responded to the serious threat to its
business by taking the following steps:-
y Trimming its costs by about $600 million a year.
Worldwide, Xerox employees were reduced
through redundancy from 120,000 in 1980 to
104,000 three years later.
y Restructuring, led from corporate headquarters
in Stamford, Connecticut, each part of Xerox
reorganized itself for greater efficiency.
y Competitive benchmarking its new Rivals in
terms of products, service and practices.
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y Launching a Total Quality Programme in
February, 1983 based on massive training in the
teachings of Deming and Juran.
The policy statement was simple and direct: Xerox is
a quality company. Quality is the basic business
principle for Xerox. Quality means providing our
external and internal customers with innovative
products and services that fully satisfy their
requirements. Quality is the job of every Xerox
employee.
Conclusion:-
Through TQM a company can win awards like
Malcolm Baldrige quality award and also can gain
recognition from ISO and others like a Deming
Company or Juran Company.
TQM not only helps in improving Productivity but
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also will help the Co. to outstand in todays cut throat
competition.
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BIBLIOGRAPHY
1. Prof. Aswani notes2. The Essence of Total Quality Management
------ John Bank
3. Productivity techniques
----- Dr. Uday Salunkhe
Dr. Srinivas
Gondhalekar
Websites
1. www.skyenet.net
2. www.improve.org
3. www.isixsigma.com
4. www.mazur.net 5. www.wikipedia.org
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DATA ANALYSIS AND INTERPRETATION
Pareto charts:- Frequent production delays
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Cause F
requency % to the total Cumulative Total
Machine Breakdowns 120 51.06% 51.06%
Raw material Shortages 88 37.45% 88.51%
Low quality raw materials 18 07.66% 96.17%
Electricity failures 9 03.83% 100%
Total 235 100%
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1) In the manufacture of 1 kg Mischmetal ingots, the
product weight varies with the batch. Below are a
number of subsets taken at normal operatingconditions (subsets 1-7), with the weight values
given in kg.
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S
e e ve e X A ve e e R A
ve e s ev S A e c e e
s se s e e e c s
s e ce e es e e e =4
X-Bar limits are computed (using ).
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X-Bar limits are computed (using ).
No : Si n n=4 (a a i v y a ub ize), bo h
and can be u ed t o accu atel y calcul ate t he UCL
and LCL.
R-chart limits are computed.
S-chart limits are computed.
The v s s se s 8-11 e e e
e s e how they v y with in comparison with
the control limits
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Figure E-4: S t f b t 8 11.
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2)