MMZG 522 Total Quality Management Rajiv Gupta BITS Pilani August 2014 Lecture 1
Session 1
• Module 1 – Introduction to Dr. Rajiv Gupta, faculty for MFGO 635
– Introduction to the course and guidelines to the course
• Module 2 – Understanding Quality
• Module 3 – Total Quality Management
• Module 4 – Quality Gurus
• Module 5 – Summary
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Session 1
• Begin Module 1
– Introduction to Dr. Rajiv Gupta, faculty for
MMZG 538
– Introduction to the course and guidelines for
the course
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• Dr. Rajiv Gupta
Education:
B.Tech. M.E. I.I.T. Delhi
M.S. I.E. North Carolina State University
Ph.D. I.E. Purdue University
Taught at The State University of New York at
Buffalo, General Motors Institute, and the University of
Michigan, Dearborn in the U.S.
S.P. Jain Institute in Singapore and Dubai, FORE School of
Management, School of Inspired Leadership and BITS,
Pilani
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Worked at Mahindra Logistics as Head of Solution
Design and Automotive Operations
Started and ran own Consulting Company as an
International Associate of Tompkins Associate of
Raleigh, North Carolina
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Course Outline
• We will cover the topics related to Total Quality
Management
• Text book: Total Quality Management, 3rd ed. By
Dale Besterfield, et. al., 2011
• Method of instruction: Taped lectures, live on-
line recitation sessions. In addition there will be
additional taped material that will be available
• Neither the text book, nor the lecture notes, nor
the lectures substitute for each other. You need
all three to learn about the subject. 6
• It is the responsibility of the student to watch the
taped lectures, attend the recitations (or watch
taped), read the relevant chapters from the book
and other material that is made available.
• For any questions, doubts pertaining to the
subject matter, please send me an email at
[email protected],ac.in. For all
administrative questions, please call or write the
WILPD office at BITS Pilani. If you do not get a
satisfactory response please let me know.
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• Assessment: There will be 2 exams and 2
on-line quizzes. The point breakdown will
be as follows:
– Mid-term exam (closed book) – 35%
– Final exam (open book) – 50%
– 2 on-line quizzes (open) – 15%
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• I expect you to keep regular with the
material covered in class and with the
readings as assigned. This is your
responsibility.
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Quality
• What is quality?
• Who determines what is quality?
• Who is responsible for quality?
• How has quality evolved?
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Definition of Quality
• Quality is the totality of features and
characteristics of a product or service that bear
on its ability to satisfy stated or implied needs
now and in the future. (From: ANSI/ASQC A3-
1987 “Quality Systems Terminology”)
• Quality = Customer Satisfaction and
Loyalty; Customer Focused.
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Definition of Quality
• Quality= Q = P/E
Q = Performance/Expectations
• Quality has two sides:
- Objective quality that can be measured
easily (by physical instruments).
- Subjective quality depends upon each
individual’s perception. (Quality is a
subjective term for which each person
has his or her own definition).
Who Determines Quality?
• In the old days, (and in some cases, even
today), the design and the quality
departments determined what is quality
– Conformance to specification
– Conformance to design
– Conformance to need??
• Today – the ultimate customer who pays
for the product or service determines what
is quality
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Who Determines Quality?
• Example of the U.S. auto industry
– Considered the effect of imports from Japan as an
aberration and limited to low cost vehicles
– Did not take into consideration the changing
consumer needs
– Blamed the customer for not understanding the effort
and cost going into the manufacture of costs and for
not buying American cars
– Almost went out of business
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Who is Responsible for Quality?
• In the days of craft production, the craftsman inspected
the product for non-conformities and defects and
corrected for them
• With mass production, we saw the growth of the
inspection department. In the Hawthorne plant of
Western Electric Co., there were 40,000 employees and
5,200 in the inspection department
• During World War II, we saw a growth of Statistical
Quality Control. But this was discontinued after the war
due to the tremendous increase in demand and the lack
of top management understanding and commitment
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Who is Responsible for Quality?
• In Japan, after World War II, there was a tremendous
shortage of good quality radios and the U.S. occupation
forces requested the services of Dr. Deming and Joseph
Juran to train the Japanese manufacturing companies in
the fundamentals of quality and statistical quality control.
Dr. Deming insisted, and got all the top management of
the Japanese companies to attend the training on quality
• Dr. Deming taught the Japanese, and later, the
American companies that quality is the responsibility of
top management. Without their understanding and
commitment, quality is not possible.
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How Has Quality Evolved?
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Inspection
Statistical Process Control
Understanding Customer
Needs
Anticipating Customer
Needs
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TQM- Total Quality Management
• TOTAL
-- Whole- Everyone involved
-- All parts of the organization involved
• How do you see your role in creating or ensuring quality in your organization?
• Think of areas such as design, purchasing, manufacturing, warehousing, maintenance, etc.
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Total Involvement
• Market research -- must discover quality needs of the users.
• Product Development -- must create designs that are responsive to their needs.
• Manufacturing and Operations Planning -- must regulate these processes capable of executing the product designs.
• Purchasing -- must obtain adequate materials.
• Inspection and test -- must prove the adequacy of the product through simulated use.
• Marketing -- must sell the product for the proper application.
• Customer Service-- must observe the usage, remedy failures, and report opportunities for improvement.
• Administrative and Support Activities-- must meet the needs of their customers, both internal and external.
• Management -- must take leadership in quality activities.
• Suppliers – must provide the right part at the right time, quality and cost
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TQM - Total Quality
Management • QUALITY
-- Degree of excellence of a product
or service
-- Customer Satisfaction
• Building quality versus weeding it out
• Deming’s “pride in work”
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TQM- Total Quality Management
• MANAGEMENT
-- Act, art, or manner of handling,
controlling, directing, etc.
• Reactive versus Proactive
• Anticipate Requirements
• Leadership
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TQM is both a philosophy and a
set of guiding principles • Of clear vision and mission for the organization
• To apply formal and quantitative methods
• To fully exploit human potential
• To continuously improve all processes within an
organization
• To meet and exceed customer needs for now
and in the future
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TQM requires five basic
concepts: 1. Visionary leadership
2. An unwavering focus on customers
3. Effective involvement and utilization of the
entire workforce
4. Treating suppliers as true partners.
5. Data based performance measurement and
continuous improvement of business and
operational processes.
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Quality is a Business Issue
• It is no longer only a quality manger’s job.
• Quality relates to everything in an organization.
• Quality demands specialized knowledge, training and tools.
• TQM approach leads to successful organizations.
• Organization MUST have a well-developed Quality Management System (Study, Implement and Improve)
• Quality Certifications and Awards
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Quality Gurus
• Walter Shewhart
• W.E. Deming
• Joseph Juran
• Philip Crosby
• Feigenbaum
• Ishikawa
• Taguchi
• Kano
Walter Shewhart
• Considered the father of Statistical Quality
Control and the Shewhart Cycle
• The Shewhart Cycle evolved into the
current PDCA/PDSA cycle
• Worked at Western Electric Co.
• Dr. W. E. Deming learned about Statistical
Quality Control, the Control Chart and the
Shewhart Cycle from Walter Shewhart
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W.E. Deming
• Taught the Japanese companies basics of
SQC and the importance of quality at the
end of World War II
• Evolved the Shewhart Cycle into the
current PDSA/PDCA cycle
• 14 Points
• System of profound knowledge
• Predictable degree of uniformity
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Joseph Juran
• Quality is fitness for use
• Quality is defined by product features and
absence of deficiencies
• Juran Trilogy
Juran Trilogy
• Quality Planning
– Identify who are the customers.
– Determine the needs of those customers.
– Translate those needs into our language.
– Develop a product that can respond to those
needs.
– Optimise the product features so as to meet
our needs and customer needs.
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Juran Trilogy
• Quality Control
– Evaluate actual quality performance
– Compare actual performance to quality
goals
– Act on the difference
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Juran Trilogy
• Quality Improvement – Establish the infrastructure needed to secure annual quality
improvement.
– Identify the specific needs for improvement -the improvement
projects
– For each project establish a project team with clear responsibility
for bringing the project to a successful conclusion
– Provide the resource, motivation, and training needed by the
team to:
• Diagnose the cause
• Stimulate establishment of remedies
• Establish controls to hold the gains
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Philip Crosby
• The definition of quality is conformance to requirements
(requirements meaning both the product and the
customer's requirements)
• The system of quality is prevention
• The performance standard is zero defects (relative to
requirements)
• The measurement of quality is the price of
nonconformance
• Quality is free
• Do It Right The First Time
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A.V. Feigenbaum
• Total Quality Control
• Includes both planning and control
• Quality system to provide managerial
procedures to assure customer
satisfaction and an economical cost of
quality
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Kano Model
Goal: Customer Satisfaction
Kano Model of Quality suggests relationships of dissatisfiers (unspoken wants), satisfiers (Give more of), and delighters (Wows) to customer satisfaction (CTS=Requirements Critical to Customer Satisfaction).
Summary of Session 1
• Quality is the responsibility of top management
but requires the involvement of everyone
• Total Quality Management is a systems
approach to manage quality in an organization
• Quality has evolved over the years to where the
focus today is on customers and not on the
manufacturers
• Significant advances have been made in quality
in the twentieth century
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