TQMVIT-2
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Transcript of TQMVIT-2
UNIT- IPRINCIPLES OF QUALITY
MANAGEMENT
What you will know… Definitions of Quality Theories of Deming, Moeller and Crosby Service and Product Quality Customer Orientation Evaluation of TQM- Inspection & QC TQM System Human component
Definitions of Quality Conformance to specification Fitness for use Customer satisfaction Delighting the customer Enchanting the customer
Theories of
Deming, Moeller and Crosby
Deming’s Theory Deming's 14 Points
1. Create constancy of purpose to improve product and service.
2. Adopt new philosophy for new economic age by management learning responsibilities and taking leadership for change.
3. Cease dependence on inspection to achieve quality; eliminate the need for mass inspection by building quality into the product.
4. End awarding business on price; instead minimise total cost and move towards single suppliers for items.
Contd…5. Improve constantly and forever the system of
production and service to improve quality and productivity and to decrease costs.
6. Institute training on the job.
7. Institute leadership; supervision should be to help do a better job; overhaul supervision of management and production workers.
8. Drive out fear so that all may work effectively for the organisation.
9. Break down barriers between departments; research, design, sales and production must work together to foresee problems in production and use.
Contd…10. Eliminate slogans, exhortations and numerical targets for the
workforce, such as 'zero defects' or new productivity levels. Such exhortations are diversory as the bulk of the problems belong to the system and are beyond the power of the workforce.
11. Eliminate quotas or work standards, and management by objectives or numerical goals; substitute leadership.
12. Remove barriers that rob people of their right to pride of workmanship; hourly workers, management and engineering; eliminate annual or merit ratings and management by objective.
13. Institute a vigorous education and self-improvement programme.
14. Put everyone in the company to work to accomplish the transformation.
Moeller’s theory Claus Moeller – Concept of personal quality
1. Set personal quality goals2. Establish own personal quality account3. Check how satisfied others are with your efforts4. Regard the next link as a valued customer5. Avoid errors6. Perform tasks more effectively7. Utilize resources well8. Be committed9. Learn to finish what you start10. Control your stress11. Be ethical12. Demand quality
Crosby’s theoryPhilip Crosby- “Quality is free”
Establish management commitment Form quality improvement teams Establish quality measurements Evaluate the cost of quality. Raise quality awareness Take action to correct problems Zero defects planning Train supervisors and managers Hold a zero defects day Encourage the setting of goals for improvement Obstacle reporting Recognition for contributors Establish Quality councils Do it all over again
Service and Product Quality
Customer satisfaction and service quality are related terms
How to we ensure that our customers are having a good experience?
Measuring service quality:
ServiceQuality
ServiceQuality
ReliabilityReliability
ResponsivenessResponsiveness
AssuranceAssurance
EmpathyEmpathy
TangiblesTangibles
Contd…
Reliability dependability delivering on promises accuracy consistency
Responsiveness promptness helpfulness
Get it right the first time!
and on time!
Assurance competence courtesy credibility security
Empathy easy access good communication customer understanding personalised attention
Tangibles physical evidence
I feel safe
They listen to me
People look smart
The Gaps Model of Service Quality
ConsumerPast
experience
Past experience
Expected serviceExpected service
Perceived servicePerceived service
Service delivery (including pre- and post-
contacts)
Service delivery (including pre- and post-
contacts)
External communications
to consumers
External communications
to consumers
Translations of perceptions into service
quality specifications
Translations of perceptions into service
quality specifications
Management perceptions of consumer expectations
Management perceptions of consumer expectations
GAP 5
GAP 3
GAP 2
GAP 1
GAP 4
Personal needsPersonal needs
Word-of-mouth communications
Word-of-mouth communications
Marketer
Closing the gaps
Learn what customers expect Establish the right service quality
standards Ensure that service performance
meets standards Ensure that delivery matches
promises
Learn what customers expect Use research, complaint
analysis, customer panels Increase direct interactions
between managers and customers
Improve upward communications
Act on information and insights
listen to customers
Establish the right service quality standards Top management commitment to providing
service quality Set, communicate, and reinforce customer-
oriented service standards Establish challenging and realistic service
quality goals Train managers to be service quality leaders Be receptive to new ways to deliver service
quality Standardise repetitive tasks
Prioritise tasks Gain employee acceptance of
goals and priorities Measure performance of service
standards and provide regular feedback
Reward managers and employees for achievement of quality goals
Service Quality AwardsService Quality Awards
Ensure that service performance meets standards
Attract the best employees Select the right employees Develop and support
employees train employees provide appropriate technology
& equipment encourage and build teamwork empower employees internal marketing
Can I take your
order?
Retain good employees measure and reward
service quality achievements
develop equitable and simple reward systems
You are a
Star Service
Provider
Performance Features Reliability Conformance Durability Serviceability Aesthetics Perceived Quality
Eight Dimensions of Product Quality
Eight Dimensions of Product Quality 1. Performance
the primary operating characteristics of the product or service.
2. Features the characteristics that supplement the basic functioning of
the product or service. 3. Reliability
probability of the product or service failing within a specified period of time.
4. Conformance the degree to which a product or service meets
acknowledged standards
5. Durability a measure of product life (both technical and economic).
6. Serviceability the speed, courtesy, competence, and ease of repair or
recovery. 7. Aesthetics
how a product or service looks, feels, sounds, tastes, or smells.
8. Perceived Quality various tangible and intangible aspects of the product from
which quality is inferred.
Eight Dimensions of Product Quality …
Customer Orientation
Customer focus Org. focus on
Attracting more customers Making them happy Retaining them
Quality begins and ends with customers
Customer types Type – 1
Knows not what he wants, Knows not that he knows
They are insignificant . But be gentle as he is easy to satisfy
Type – II Knows not what he wants, Knows that he knows not what he wants
Humble, teaching and training will make them knowledgeable; easy to satisfy
Contd… Type – III
Knows what he wants Knows not that he knows what he wants
Sleeping customers; few in number; attractive advertisements will awaken them and make them understand reality
Tough to satisfy
Contd…
Type – IV Knows what he wants Knows that he knows what he wants
Masters of themselves; demanding; large percentage; assume position of king; vital few group
Customer satisfaction model
Delighted customers
Dissatisfied customers
Value addition
Not available Value addition available
Type A customer- without expectations
Type B customers- with expectations
Contd… Customer satisfaction model relates to customer satisfaction
and value addition
TYPE – A Expectations on value addition
No comments when expectations are met Dissatisfied when expectations are not met
TYPE- B No expectations
Normal when expectations are not met Delighted when value addition is provided
Quality strategy: provide value addition not expected by customers
contd… Appropriate strategy would be to
Asses and express the unexpressed customer needs
Train people to be quality conscious Go in for system perfection- ISO Monitor them and look for continuous
improvement Thus C Sat is sure to improve
Holistic approach to customer satisfaction model
3 circle model to explain key factors that constitute customer satisfaction
Human component Efficient
EffectiveRubber bondage
Customer needs
Unaccep
table
System component
Contd… C Sat level depends upon extent of integration of the 3
factors1. Human component
2. System component
3. Customer needs
Human component : Quality consciousness Quality culture among employees
System component: Infrastructure Process perfection
Customer retention model Sustained satisfaction alone will retain customers Customer retention is directly proportional to profits This is called “lifetime retention value” Developed by Joel E Ross Human component need to be in order to retain customers Employee satisfaction is the driver Customer retention is dependent on C Sat. C Sat is proportional to quality
Internal ServiceQuality
C sat
Employeesatisfaction
profitCustomerretention
External service quality
Employee retention
Human component
CUSTOMER RETENTION MODEL
DRIVEROUTCOME
Customer satisfaction Measurement
Helps in planning by revealing the status at every point of time
It tells you where exactly you stand Helps take decisions to prevent or solve
customer dissatisfaction CSM is done using surveys- written or oral
Evaluation of TQM- Inspection & QC
Inspection:
The act of determining conformance or non-conformance of the expected performance is the function of inspection. By inspection, a manager seeks to determine the acceptability or non- acceptability of the parts, products or services. The basis for inspection is usually a specification which is called inspection standard. Inspection is made by comparing the quality of the product to the standard.
When to inspect Inspection is desired at
Finished products and parts to know that correct parts are to be assembled or products are right when shipped,
Before an expensive processing, The out put of automatic machine periodically so
that possible errors are confined to small quantities, and
Before an operation that can’t be undone, for example, in mixing paint.
Frequency of inspection
The challenge is to keep inspection costs minimum, yet realise expected quality. In certain cases every part is inspected, in which case, it is called 100 percent inspection. When it is less than 100 percent , it is called partial or sampling inspection. Parts with high value and those having tendency to run in to large number of rejects are normally subject to 100% inspection.
Quality control
Quality control is a management system for initiating and coordinating: Quality development, quality maintenance and
quality improvement in the various departments of design and manufacturing, for achieving the twin objectives of:
Economical production and customer satisfaction
Objectives of Q C
It is to provide products which are dependable, satisfactory and economical
To ensure economic production of products of uniform quality acceptable to the customer
Aims at preventing the defects rather than detecting the defects
Quality control Techniques
JIT Quality at source Inspection SQC QC TQM
Human component Quality management practices are attempted in
many industries The various factors that contribute to success of
quality practices are Involvement or interest of employers Training on quality practices Top management commitment Conducive work culture Facilities for implementing quality practices
Human factor is very important in the implementation of any process
The top management commitment may be reflected in the following ways
The CEO will initiate quality activities in the organization
Funds will be sanctioned for the quality related activities
Training will be provided for all in the organization including the CEO
The CEO himself will follow quality practices first
Leadership for TQM A leader is expected to posses certain leadership qualities
essential for leadership Leadership is considered as doing right things while
management is doing things right Leadership is influencing the people so that all of them do the
right things, the right way at the right time, willingly. Leaders concentrate on people building and train them to
work as a team. The key word in leadership is “influencing”. The employees
look at the leader’s words through patterns and works and are attracted by it.
A leader is said to be special and have qualities such as cool temperament, maturity, endurance, tact, decisiveness, integrity etc.
Change management Change is the only thing that does not
change Change can be externally imposed or self
imposed Change should come from employees
rather than top management Communication plays a very important role Change one at a time and reap benefits
Drivers of change Competition in market Consumer demand Reduction in profit margin Technological advancements Limited time HR problems/scarcity Quality consciousness Others are doing it National agenda Visionary leader wants it
Resistance to change I don’t understand My workload will be more Old is gold As it is everything is ok Against norms This has failed elsewhere Against my ideals He is new and does not know I am fed up I do not get anything
Ways to change Define the change State why it is needed Tell the benefits Tell success stories Prepare schedule Never accept or expect overnight changes Involve everyone Introduce changes one by one Have meetings and training
End of unit….