Unit 1 Introduction

Unit 1IntroductionQualityQuality is an attribute of a product or service that fulfils or exceeds human expectationAs per ISO 9000:2000 Quality means The degree to which a set of inherent characteristics fulfils requirementsOxford dictionary Quality is the degree of excellenceFitness for use, fitness for purpose, customer satisfaction or conformance to requirementsQ = P/E,Where, Q- Quality, P Performance, E ExpectationQ >1, SatisfactionNeed/Importance of QualityProvides competitive edgeReduces cost due to return, rework & scrapIncreases profit, productivity, brand image, product image & company good willGenerates satisfied customersHigh employee morale & improves productivityEvolution of Quality1924 W.A. Sehwart of Bell Telephone Laboratories chart for control of product variables1942 Statistical Quality Control1946 ASQ American Society for Quality Control1950 Edward Deming Lectures at Japan about quality1954 Joseph Juran at Japan Managements responsibility to achieve quality1960 Quality control circles1970 US managers went to Japan to learn qualityContinued1980 Concepts of TQM introduced1990s Rankings based on customer satisfactionISO 9000 world wide Quality Management SystemISO 14000 Environmental Management SystemDefinitionTQM Enhancement of traditional way of doing businessProven technique to survive in world class competitionTotal made up of the wholeQuality degree of excellence a product or service producesManagement Act, art, or manner of handling, controlling, directing, etc.

The Range From Services to ProductsDimensions of QualityPerformance primary product characteristics. Eg Usage, gamingFeatures Secondary characteristics. Eg Camera, etcConformance - meeting specific standardsReliability Consistency of performance over a periodDurability Useful life including repairService Resolution of problems, serviceResponse Human to human interfaceAesthetics Sensory characteristics Exterior finishReputation - Past performanceDimensions of Service QualityReliabilityResponsivenessAssuranceEmpathyTangiblesOther Dimensions Time, completeness, courtesy, consistency, accessibility, etc.Characteristics of TQMManagement philosophy guide to changeCustomer oriented management systemStarts at the top needs management commitmentTeamworkCalls for planningContinuous performance improvement at all levelsAchieving results by process based approachRecognizes customer supplier relationshipConsiders supplier as a partnerEmphasizes importance of measurementInterlinks various sub systems of the organizationAims at meeting the dynamic needs of the customerAims to instil prevention not an inspection ethicBasic concepts of TQMTop management commitmentFocus on the customerEffective involvement & utilization of entire workforceContinuous improvementTreating suppliers as partnersEstablishing performance measures for the processes

TQM Framework

Principles of TQMCustomer requirements should be metAgreed requirements from internal & external customersEverybody should be involved from all levelsRegular two way communication between allIdentifying training needs & relating them with individual capabilitiesTop managements participation & commitmentCulture of continuous improvementEmphasis on purchase & supply managementEvery job must add valueEliminate waste & reduce total costsFocus on prevention of problemsCulture of promoting creativityPerformance measures mustFocus on team workBarriers to implement TQMLack of management commitmentLack of faith & support to TQM among management personnelInability to change organizational cultureMisunderstanding concepts of TQMImproper planningLack of employee commitmentLack of effective communicationLack of continuous training & educationLack of interest or incompetence of leadersIneffective measurement techniquesNon application of proper tools & techniquesInadequate use of empowerment & team workInadequate attention to internal & external customersDelay or non improvement of quality teams recommendationPotential benefits of TQMTangible benefitsImproved product qualityImproved productivityReduced quality costsIncreased market & customersIncreased profitabilityReduced employee grievancesIntangible benefitsImproved employee participationImproved team workImproved working relationshipsImproved customer satisfactionImproved communicationEnhancement of job interestEnhanced problem solvingBetter company image

Contribution of Quality GurusDeming, juran & crosby

W. Edward DemingDeming American senior quality guru1928 awarded doctorate in mathematical physics1946 expertise in SQC was sent to Japan after WWII1951 after having impressed by his contribution, Japanese established the Deming Prize annually awarded to firms that distinguish themselves with QMS1956 awarded the Shewart medal by American Society for Quality Control1960 Awarded by the Japanese Emperor with the Second OrderPublished more than 200 books on QualityDemings ContributionsDemings 14 points on route to qualityDeming cycle or PDCASeven deadly diseases of ManagementSystem of profound knowledgeDemings 14 PointsCreate constancy of purpose towards improvement of product & serviceAdopt the new philosophyCease the dependence on inspection to achieve qualityEnd the practice of rewarding business based on price tagImprove constantly and forever the system of production & serviceInstitute training on the jobInstitute leadershipContinuedDrive out fearBreak down barriers between departmentsEliminate slogans, exhortations and targets on workforce which ask for zero defects and new levels of productivityEliminate work standards (quota) on the factory floorRemove barriers to pride of workmanshipInstitute a vigorous program of education & self improvementPut everybody on the company to accomplish the transformation2. Deming Cycle or PDCA CycleSystematic approach to problem solving by DemingUniversal improvement method idea to constantly improveReduces the difference between customer requirement & performance of the processThe cycle repeats itself

3. Seven Deadly diseases of Western ManagementLack of consistency of purposeEmphasis on short term profitReliance on performance appraisal & meritsReliance on financial figuresStaff mobilityExcessive medical costsExcessive legal costs4. System of Profound KnowledgeAccording to Deming, the four ingredients of the system of profound knowledge necessary to learn & practice are:Appreciation for a systemKnowledge of statistical theoryTheory of knowledgeKnowledge of psychologyJoseph M. JuranBorn in Romania (1904) and emigrated to America in 19121951 Quality Control HandbookMid 1950 Travelled to Japan to conduct seminar on planning, organizational issues, management responsibility for quality, etc.Authored hundreds of papers & booksAwarded 30 medals & fellowships worldwide including Japanese Second Order of the Sacred Treasure by the EmperorJurans ContributionsInternal CustomerCost of QualityQuality TriologyJurans 10 step for Quality ImprovementThe Breakthrough concept1. Internal CustomerEnd person alone is not the customerEach person along the chain is a customer from product designer to final userThe person will be a process carrying out transformation activityJurans three role modelEach participant played 3 roles

2. Cost of QualityJuran classified cost of quality into three classes:Failure costs scrap, rework, corrective actions, warranty claims, customer complaints, loss of customerAppraisal costs Inspection, compliance auditing & investigationPrevention costs training, preventive audit, & process improvement implementation3. Jurans Quality TriologyJuran viewed quality as fitness for useDivided quality planning into 3 parts:Quality PlanningQuality ControlQuality Improvement4. Jurans 10 steps for Quality ImprovementBuild awareness of the need & opportunity for improvementSet goals for improvementOrganize to reach the goalsProvide trainingCarry out projects to solve problemsReport ProgressGive recognitionCommunicate resultsKeep scoreMaintain momentum by maintaining annual improvement5. The Breakthrough ConceptJurans breakthrough concerns with product/service life cycleIt is split into two areas:Journey from symptom to causeJourney from cause to remedy3. Philip CrosbyAmerican quality guruBest known for Zero Defects & Do it right first timeWritten many books Quality is free, Quality without tears, Lets talk Quality and Leading: the art of becoming an ExecutiveFounder of Carrer IV, Philip Crosby Associates Inc & Quality CollegeCrosbys ContributionFour absolutes of quality14 steps to quality management &Crosbys quality vaccine1. Crosbys Absolutes for Quality Management

2. Crosbys 14 StepsProposed 14 steps to quality improvement process:Establish & ensure management commitmentForm quality improvement teams (QIT) for quality improvement process, planning & administrationEstablish Quality MeasurementsEvaluate the cost of quality & explain its use as management tool to measure wasteRaise quality awareness among all employeesTake actions to correct problems identified in previous stepsEstablish zero defects committee & programContinuedTrain supervisors & managers in their roles & responsibilities in quality improvement processHold zero defects day to reaffirm management commitmentEncourage individuals & groups to set improvement goalsObstacle reportingRecognize & appreciate all participantsEstablish Quality CouncilDo it all over again to demonstrate that improvement is a never ending process3. Crosbys Quality Vaccine