Introduction to Quality

Dr. Hima Gupta

Session 1

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TQMTQM

• Total - Made up of the whole

• Quality - degree of excellence a product or service provides

• Management - Act, art or manner of planning, controlling, directing,….

Therefore, TQM is the art of managing the Therefore, TQM is the art of managing the whole to achieve excellencewhole to achieve excellence.

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WHAT IS QUALITY ?

EVERYTHING WHICH MATTERS TO THE CUSTOMER

WHAT IS POTENTIAL OF AN ORGANISATION ? ( INCLUDING THE EFFECT OF SYNERGY )

WHAT IS PRESENT LEVEL OF PERFORMANCE ?

QUALITY MANAGEMENT ATTEMPTS TO FILL THIS GAP

REVENUE-EARNING PER STAFF PER ANNUM FOR IR

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What is Quality?• There are so many definitions for

Quality.• Quality is…..

– Based on judgments by an individual or organisation

– Fitness for purpose– Corresponds to a rating– Based on acceptable performance– Meeting goals– Meeting requirements

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Traditionally Quality has 3 main dimensions

• Performance• Price• PromptnessIn present context , following more dimensions should be added to Concern for Quality –

• Global competitiveness• Concern for environment• Concern for safety ( for Transport Orgn. ) 5

New & Old CultureQuality Element Previous State New State-----------------------------------------------------------------------

Definition Pdt oriented Cust. Oriented

Priorities Second to service & cost First among equals of service & cost

Decisions Short – term Long term

Emphasis Detection Prevention

Errors Operations System

Responsibility QC Everyone

Pblm solving Managers Teams

Procurement Price Life – cycle costs, partnership

Manager’s Role Plan, assign, control Delegate, coach, facilitate and enforce and mentor

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Why TQM?Why TQM?

Ford Motor Company had operating losses of $3.3 billion between 1980 and 1982.

Xerox market share dropped from 93% in 1971 to 40% in 1981.

Attention to quality was seen as a way to combat the competition.

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• What is Quality?Quality is the ability of your product to be able to satisfy your users

• What is Quality Assurance?Quality Assurance is the process that demonstrates your product is able to satisfy your users

What is Quality Assurance?

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What is Quality Control?• Quality Control (QC) is the

implementation of regular testing procedures against your definitions of quality and more specifically the refinement of these procedures – Formal use of testing– Acting on the results of your tests– Requires planning, structured tests, good

documentation– Relates to output - Quality Circle– Standards - ISO 9000 & BS5750

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The Quality Cycle

RefineProduct

QualityControl

QualityAssurance

Qualityoutput

input

Test results

CreateProduct

TestProduct

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Dimensions of Quality

Product- TVPerformance - Primary Characteristics, such as brightness

Features –Secondary Characteristics, Remote Control

Conformance-Meeting Specifications or Standards

Reliability –Consistency of Performance over time-fail

Durability- Useful life ,include Repair Service

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Defining Quality

Perfection

ConsistencyEliminating waste

Fast delivery

Compliance with policies and procedures

Providing a good, usable product

Doing it right the first time

Delighting or pleasing customers

Total customer service and satisfaction

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Formal Definitions of QualityFormal Definitions of Quality

• Transcendent definition: excellence

• Product-based definition: quantities of product attributes

• User-based definition: fitness for intended use

• Value-based definition: quality vs. price

• Manufacturing-based definition: conformance to specifications

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Quality PerspectivesQuality Perspectives

CustomerCustomer

DistributionDistribution

productsproducts and and servicesservices

needsneeds

transcendent &transcendent &product-basedproduct-based user-baseduser-based

manufacturing-manufacturing- basedbased

value-basedvalue-based

MarketingMarketing

DesignDesign

ManufacturingManufacturing

Information flowInformation flowProduct flowProduct flow 14

Customer-Driven QualityCustomer-Driven Quality

• “Meeting or exceeding customer expectations”

• Customers can be...– Consumers– External customers– Internal customers

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Total Quality

• People-focused management system• Focus on increasing customer satisfaction

and reducing costs• A systems approach that integrates

organizational functions and the entire supply chain

• Stresses learning and adaptation to change• Based on the scientific method

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Learning

LEARNING AND TQM

Process Improvement

Quality Improvement

Customer Satisfaction

Shareholder Satisfaction

Employee Satisfaction

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BASIC PRINCIPLES OF TQM

Approach Management Led

Scope Company Wide

Scale Everyone is responsible for Quality

Philosophy Prevention not Detection

Standard Right First Time

Control Cost of Quality

Theme On going Improvement

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Principles of Total Quality

• Customer and stakeholder focus• Participation and teamwork• Process focus supported by continuous

improvement and learning

…all supported by an integrated organizational infrastructure, a set of management practices,and a set of tools and techniques

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FOUR KEY PRINCIPLESFOUR KEY PRINCIPLES

•Measure quality so you can affect it

•Focus on a moving customer

•Involve every employee

•Think long term - Act short term

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SEVEN DEADLY SINS OF TQMSEVEN DEADLY SINS OF TQM

•Flight to nowhereFlight to nowhere

•One size fits allOne size fits all

•Substituting TQM for leadershipSubstituting TQM for leadership

•Inside - Out indicatorsInside - Out indicators

•Mandatory religionMandatory religion

•Quality kept as a separate activityQuality kept as a separate activity

•Teaching to the testTeaching to the test

Booz-Allen & HamiltonBooz-Allen & Hamilton 21

Essentials of the Quality System 1. Say what you do

By studying the Quality Manual, teams working on a particular process know what the job requires. If in doubt, they can ask team leaders. This process enables everyone involved to understand and state the process and their role within it.

2. Do what you say

Once they understand the process, team members are able to implement it e.g. by constructing a new building for a specific client.

3. Record what you have done

Construction teams record all actions taken, so that all those involved know the current position, what has gone on before and what still needs to be done.

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Essentials of the Quality System 4. Review what you have done

Records are regularly reviewed both to ensure delivery targets can be met and to identify any problem areas.

5. Take remedial action where necessary

If problems or potential problem areas are identified, steps are taken to eliminate or reduce these.

6. Then start the process again

This procedure is followed for each stage in each process to ensure that everyone benefits from solutions to problems, which have already been devised.

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Deming’s View of aProduction System

Suppliers ofmaterials and equipment

Receipt and test of materials

Design and Redesign

Consumer research

ABCD

Production, assembly inspection

Tests of processes, machines, methods

Distribution

Consumers

INPUTS PROCESSES OUTPUTS

Feedback

Receipt and test of materials

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Infrastructure, Practices, and Tools

Leadership Strategic HRM Process Information and knowledgeLeadership Strategic HRM Process Information and knowledge Planning mgt. managementPlanning mgt. management

Performance TrainingPerformance Training appraisalappraisal

Trend chartTrend chartToolsTools

PracticesPractices

InfrastructureInfrastructure

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TQ Infrastructure

• Customer relationship management• Leadership and strategic planning• Human resources management• Process management• Information and knowledge management

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Quality and ProfitabilityQuality and Profitability

Improved quality of design

Higher perceived value

Increased market share

Higher prices

Increased revenues

Improved quality of conformance

Lower manufacturing and

service costs

Higher profitability 27

Three Levels of Quality

• Organizational level: meeting external customer requirements

• Process level: linking external and internal customer requirements

• Performer/job level: meeting internal customer requirements

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Quality and Personal ValuesQuality and Personal Values

• Personal initiative has a positive impact on business success

• Quality begins with personal attitudes

• Quality-focused individuals often exceed customer expectations

• Attitudes can be changed through awareness and effort (e.g., personal quality checklists)

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Key Idea

In the daily attempt to bring about change in the individual parts of the organizational universe, managers, employees, professors, and students can find that personal quality is the key to unlock the door to a wider understanding of what the concept really is all about. Unless quality is internalized at the personal level, it will never become rooted in the culture of an organization. Thus, quality must begin at a personal level (and that means you!).

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Quality is a Journey, not a Destination

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