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LESSON PLAN GE 2022-Total Quality

Management (TQM)
Presented by:Gnanasekharan
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TOPICS Total Quality Management


INTRODUCTION TQM

PRINCIPLES TQM TOOLS & TECHNIQUES I TQM TOOLS & TECHNIQUES II QUALITY SYSTEMS
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TOPICS: Details
INTRODUCTION Need for

TQM

PRINCIPLES TQM TOOLS & SYSTEMS I TQM TOOLS & SYSTEMS II QUALITY SYSTEMS

quality Evolution of quality Definition of quality Dimensions of manufacturing and service quality

TOPICS: Details
INTRODUCTION Basic

concepts of

TQM

PRINCIPLES TQM TOOLS & SYSTEMS I TQM TOOLS & SYSTEMS II QUALITY SYSTEMS

TQM Definition of TQM TQM Framework Contributions of Deming, Juran and Crosby Barriers to TQM.
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TOPICS: Details
INTRODUCTION Leadership Strategic

TQM

PRINCIPLES TQM TOOLS & SYSTEMS I TQM TOOLS & SYSTEMS II QUALITY SYSTEMS

quality planning Quality statements Customer focus Customer orientation Customer satisfaction
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TOPICS: Details
INTRODUCTION Customer

TQM

PRINCIPLES TQM TOOLS & SYSTEMS I TQM TOOLS & SYSTEMS II QUALITY SYSTEMS

complaints Customer retention Employee involvement Motivation Empowerment


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TOPICS: Details
INTRODUCTION Team

TQM

PRINCIPLES TQM TOOLS & SYSTEMS I TQM TOOLS & SYSTEMS II QUALITY SYSTEMS

and Teamwork Recognition and Reward Performance appraisal Continuous process improvement
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TOPICS: Details
INTRODUCTION PDSA

cycle

TQM

PRINCIPLES TQM TOOLS & SYSTEMS I TQM TOOLS & SYSTEMS II QUALITY SYSTEMS

5S
Kaizen Supplier

partnership Partnering Supplier selection Supplier Rating


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TOPICS: Details
INTRODUCTION The

TQM

PRINCIPLES TQM TOOLS & SYSTEMS I TQM TOOLS & SYSTEMS II QUALITY SYSTEMS

seven traditional tools of quality New management tools

TOPICS: Details
INTRODUCTION Six-sigma:

TQM

PRINCIPLES TQM TOOLS & SYSTEMS I TQM TOOLS & SYSTEMS II QUALITY SYSTEMS

Concepts, methodology, applications to manufacturing, service sector including IT

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TOPICS: Details
INTRODUCTION Bench

TQM

PRINCIPLES TQM TOOLS & SYSTEMS I TQM TOOLS & SYSTEMS II QUALITY SYSTEMS

marking Reason to bench mark, Bench marking process FMEA Stages, Types.

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TOPICS: Details
INTRODUCTION Quality

TQM

PRINCIPLES TQM TOOLS & SYSTEMS I TQM TOOLS & SYSTEMS II QUALITY SYSTEMS

circles Quality Function Deployment (QFD) Taguchi quality loss function TPM Concepts, improvement needs
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TOPICS: Details
INTRODUCTION Cost

TQM

PRINCIPLES TQM TOOLS & SYSTEMS I TQM TOOLS & SYSTEMS II QUALITY SYSTEMS

of Quality Performance measures

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TOPICS: Details
ISO 9000 INTRODUCTION and other quality systems TQM PRINCIPLES ISO 9000:2000 TQM TOOLS & Quality SystemSYSTEMS I elements TQM TOOLS & Implementation of SYSTEMS II Quality System QUALITY SYSTEMS Documentation
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Need for

TOPICS: Details
INTRODUCTION Quality

TQM

PRINCIPLES TQM TOOLS & SYSTEMS I TQM TOOLS & SYSTEMS II QUALITY SYSTEMS

auditing QS 9000 ISO 14000concepts, requirements and benefits

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TOPICS: Details
INTRODUCTION Case

TQM

PRINCIPLES TQM TOOLS & SYSTEMS I TQM TOOLS & SYSTEMS II QUALITY SYSTEMS

studies of TQM implementation in manufacturing and service sectors including IT.

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TQM
"Do

you know what the largest room in the world is?... The room for improvement
- Anonymous

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Need for quality awareness


The

importance of quality can be stated as follows: No quality, no sales. No sale, no profit. No profit no job.

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Need for quality awareness


The

construction industry often expresses this concept as the 1-10-100 Rule. This widely used rule of thumb suggests that a quality problem costing Rs.100 to resolve in the field would cost only Rs.10 to correct if discovered during in-house design review and only Rs.1 to prevent in the first place.
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Need for quality awareness

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Need for quality awareness


Pre Industrial Revolution, quality did not pose any problem; emphasis was on individual craftsmanship, workmanship and skills. Era of mass production initiated the industrial revolution and quality started getting attention Quality has progressed from stages of playing a purely reactive role (inspection) to its present prominence in shaping the competitive strategy of business Question of survival in an intense competitive environment.

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Need for quality awareness


Due to globalization, barriers, which existed in many world economies, have broken down and the whole world, economy-wise, has shrunk as one big market allowing almost free exchange of goods and services. Suppliers now not only face competition from domestic suppliers but also from the international ones. We are in the era of intense competition. Just conforming to specifications and satisfying the needs of the customer is no more enough. The emphasis now is on delighting and winning over customers

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Need for quality awareness


Increasing customer consciousness. Customers want value for money. Government laws and regulations for protection of consumer's interests. The needs of the customers also keep on changing fast. Unless the suppliers are fast enough and are capable of satisfying the changed needs, they just lose the customers, ultimately resulting in a reduction in their market share.

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Need for quality awareness


Need for earning profit instead of making profit: Earlier a companys selling price was decided by adding margin to its cost thus ensuring a healthy profit. Now due to competition prices are determined by the market forces and not by the supplier. At the same time the prices of materials, energy and labour are ever increasing. The only way a company could hold its price and make profits is by reducing quality cost, i.e. not making nonconforming products

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Need for quality awareness


Organizational issues forcing need of TQM: The quality of an organization is largely influenced by the quality of its leader. Skilled Human resource is receiving increasing attention. The advent of IT has an impact on the total quality.

It intensifies

the need for everyone in the organization to be computer literate. The speed, directness and immediacy of information exchange, at all levels and between organizations and key external stakeholders (suppliers and customers), is redefining business 25 relationship and responsibilities.

Evolution of Quality awareness


Identifying characteris tics
Inspection Statistical Quality Control Quality Assurance Total Quality Management

Primar y concer n Empha sis Metho ds

Detection

Control

Co-ordination

Strategic

Product uniformity (PU)

PU with reduced inspection

Entire production change

Market & consumer needs

Gauging & measurement

Statistical tools & techniques

Programmes & systems

Strategic planning & goal setting


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Evolution of Quality awareness (cont..)


Identifying characteris tics
Role of Quality profession als Responsibi lity for quality Orientation & approach
Inspection Statistical Quality Control
Troubleshoot ing & application of statistical techniques
Manufacturing Engineering Departments

Quality Assurance

Total Quality Management

Inspection, sorting, grading

Quality measurement planning

Goal setting education, training & consultation

Inspection Department

All Departments

Everyone in the organization

Inspects in quality

Controls in quality

Builds in quality

Manages in quality

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BENEFITS OF QUALITY TO A FIRM:

It gives a positive company image


It improves competitive ability both nationally and internationally It increases market share, which translates into improves profits Overall, it reduces costs which translate into improved profits. It reduces or eliminates product liability problems avoiding unnecessary costs. It creates an atmosphere for high morale which improves productivity.

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BENEFITS OF QUALITY TO A FIRM:


QUALITY now stands for

Q- Quest for excellence; U- Understanding customers needs; A-Action to achieve customers appreciation; L Leadership- determination to be a leader; I- Involving all people; T- Team spirit to work for a common goal; Y- Yardstick to measure progress
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Evolution of Quality Management


1900s Frederick Winslow Taylor adopted scientific methods by observing the best way to do a job. He insisted on quality through product inspection. 1924 W Shewhart introduced statistical charts to monitor production. 1930 H F Dodge and H G Romig introduced sampling

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Evolution of Quality Management (cont.)


1950s W Edward Deming introduced Statistical Quality Control (SQC) to Japanese manufacturers to help the Japanese rebuild their economy. Joseph Juran began his cost of quality approach. Mid 1950s the concept of Total Quality Control was introduced. The concept of quality was enlarged from manufacturing to include product design and incoming raw material

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Evolution of Quality Management (cont.)


1960s Philip Crosby introduced the concept of zero defects 1970s Quality Assurance methods were introduced in the services industries viz. Banking, Health care, etc.

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Evolution of Quality Management (cont.)


Late 1970s the approach of finding and correcting defects was changed to a more pro-active approach of focusing on preventing defects from taking place. This approach linked quality to productivity and profits. It is at this stage that the concept of quality took a total view. It focused on customer satisfaction and involved all levels of the management including the workers.

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Evolution of Quality Management (cont.)


Between the 1970s and 1980s consumers noticed the difference in the quality of goods manufactured from Japan. The reason that Japan made big strides in the field of quality was primarily due to the guidance of W Edwards Deming. From the 1980s and through the 1990s interest in quality grew rapidly. Today quality management and control is recognized as the foundation of business competition.

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What is quality?
The

word 'quality' is the most commonly used but is one of the most difficult words to define properly. We usually think quality in terms of an excellent product or service that fulfills or exceeds our expectations.

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What is quality?
When

a product surpasses a customers expectations that is considered as quality. Though quality is based on perception, it can be quantified as follows:

Q= P / E
where Q= quality P= performance E= expectations
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What is quality?
Quality

is a predictable degree of uniformity and dependability, at low cost and suited to the market (Deming) Quality is fitness for use (Juran) Quality is conformance to requirements (Crosby) Quality is the (minimum) loss imparted by a product to society from the time the product is shipped (Taguchi)
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What is quality?
Quality

is, in its essence, a way of managing the organisation (Feigenbaum) Quality is correcting and preventing loss, not living with loss (Hoshin) Each of the above definitions (and several others by various authors) holds a strong but limited vision of quality.
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What is quality?
The

universally accepted definition of 'quality', which is provided to us by ISO is as follows: "Quality is the totality of characteristics of an entity that bear on its ability to satisfy stated and implied needs

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Seven faces of Quality


Performance Features Reliability Conformance Durability

Serviceability
Aesthetics

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Dimensions of Quality
David

Garvin identified his nine dimensions of quality which he maintained covered the meaning of quality to managers, operators and customers. By accepting that customers have a different perception of quality than that of a manager, quality effort can be focused.
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Dimensions of Quality Product


(slide projector) Performance: Primary product characteristics viz.
brightness of the picture

Features: Secondary characteristics, added features viz.


remote control

Conformance: Meeting specifications or industry standards,


workmanship

Reliability: Consistency of performance over time, average


time for a unit to fail

Durability: Length of life, toughness in use, service


frequency etc.

Service: Resolution of problems & complaints; ease and cost


of service.
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Dimensions of Quality - Product


Performance (will the product do the intended job?) Features (what does the product do?) Conformance to std. (whether the product meets

the specifications?)

Reliability (how often the product fails?) Durability (how long does the product last?) Serviceability (how easy it is to repair the product?) Response (how quick is the response to

complaints?)

Aesthetics (what does the product look like?)

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Evans and Lindsay list of 8 service dimensions


Time

Timeliness
Completeness Courtesy Consistency Accessibility

& Convenience

Accuracy
Responsiveness
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The most important dimensions of service quality include the following; you may remember the most important ones by RATER:
Reliability: How much reliable is the service provider? Accessibility and convenience: Is the service easy to obtain? Timeliness: Will a service be performed when promised? Completeness: Are all items in the order included? Consistency: Are services delivered in the same fashion for every customer, and every time for the same customer? Tangibility: after the service is over, is there any thing to take home to remind the service experience? Empathy or Courtesy: Do frontline employees greet each customer cheerfully? Responsiveness: Can service personnel react quickly and 45 resolve unexpected problems?

Dimensions of Quality - Service


Reliability

Responsiveness
Competence

Courtesy
Communication

Credibility
Security
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Definition of TQM
International Organization for

Standardization (ISO) TQM is a "management approach of an organization, centered on quality, based on the participation of all its members and aiming at longterm success through customer satisfaction, and benefits to all members of the organization and to society".

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Definition of TQM

An organizationwide commitment to infusing quality into every activity through continuous improvement

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Definition of TQM
TQM

covers all parts of the organization. For an organization to be truly effective, every single part of it, each department, each activity, each person and each level must work properly together, because every person and every activity affects and in turn is affected by others. A Muhlemann and J Oakland
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Therefore, TQM is..


TQM

is defined as both a philosophy and a set of guiding principles that represent the foundation of continuously improving organization. It is the application of quantitative methods and human resources to improve all the processes within an organization and exceed customer needs now and in the future.
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Basic approach of TQM ..


1.

2.

3.

4.

5.

A committed and involved management to provide long-term top-to-bottom organizational support. An unwavering focus on the customer, both internally and externally Effective involvement and utilization of the entire work force Continuous improvement of the business and production process Treating suppliers as partners

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New and old cultures ..


Quality element Definition Priorities Decisions Emphasis Errors Responsibility Previous state
Product-oriented Second to service & cost Short-term Detection Operations Quality Control Managers

TQM
Customer-oriented First among equals of service & cost Long-term Prevention System Everyone Teams

Problem Solving Procurement


Managers role

Price
Plan, assign, control and enforce

Life-cycle costs, partnership


Delegate, coach, facilitate and 52 mentor

Shewhart, Deming Juran Feigenbaum Ishikawa Crosby Taguchi

TQM Framework

Gurus Principles & practices


People & relationship: Leadership Customer Satisfaction Employee Involvement Supplier Partnership

Tools & techniques Product or service realization

Benchmarking Information Technology Quality Management Systems Environmental Mgt. Systems Quality Function Deployment Quality by Design Failure Mode & Effect Analysis Product & Service Liability Total Productive Maintenance Management Tools Statistical Process Control Experimental Design Taguchi Quality Engineering

Customer
Approach: Continuous Process Improvement Measure: Performance measures
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Customer Focus

Total participation

TQM Model

Planning Process

Process Improvement

Process Management
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Contributions by Walter Edwards Deming

Dr. W. Edwards Deming: (1900-1993) is considered to be the Father of Modern Quality His contributions can be grouped under the following four topics:

1.
2.

3.
4.

Demings 14 points on route to quality Deming Cycle (PDCA Cycle) Seven deadly diseases of Management System of profound knowledge
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Contributions by Deming
Deming, an American, worked in the 1930s with Walter A. Shewhart at Bell Telephone Company. Shewhart, a statistician who had the theory that product control could best be managed by statistics. He developed a statistical chart for the control of product variables. Deming developed a process, based on Shewhart's, using statistical control techniques that alerted managers of the need to intervene in the production process.

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Contributions by Deming
Deming utilized

the statistical control techniques during World War II while working on government war production. In 1947 Douglas MacArthur sent Deming to Japan to help the war-devastated Japanese manufacturing plants. He introduced these "statistical process control" methods in a series of lectures on statistical methods to Japanese businessmen and engineers.
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Contributions by Deming
Demings philosophy went

beyond statistical quality control and encouraged building quality into the product at all stages. Japanese realized that: quality improves, costs go down and productivity goes up; this leads to more jobs, greater market share, and long-term survival. Deming stressed worker pride and satisfaction and considered it management's job to improve the process, not the worker.
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Contributions by Deming
Quality

circles, introduced by Deming, whereby employees meet regularly in groups to comprehensively discuss product quality. The GDP in Japan rose steadily from 1960s by more than 10 percent per year. By 1951 the Japanese had named their quality prize in his honor.
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Contributions by Deming
Deming emphasized improving quality of

the product as more important than short-term financial goals. He de-emphasized quantity, and emphasized quality Deming believed that "statistical process control" was an invaluable instrument in the quest for quality
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Contributions by Deming
create ACE, improve BID, eliminate ERIA (rhyming like area)

1.

2.
3. 4. 5.

6.
7. 8.

Create constancy of purpose Adopt the new philosophy Cease dependence on inspection to achieve quality: End the practice of awarding business on the basis of price tag Improve constantly and forever the system of production and service Break down barriers between departments Institute training on the job. Institute leadership.

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Contributions by Deming
create ACE, improve BID, eliminate ERIA (rhyming like area)

9.

10.
11.

12.
13.

14.

Drive out fear, create trust & create climate for innovation Eliminate slogans, exhortations and targets for the workforce Eliminate work standards (quotas) on the factory floor Remove barriers to pride of workmanship Institute a vigorous program of education and selfimprovement for everyone Take action to accomplish the transformation.

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Contributions by Deming
1. 2. 3. 4.

5.

6.

Create constancy of purpose Adopt the new philosophy Cease dependence on inspection to achieve quality: End the practice of awarding business on the basis of price tag Improve constantly and forever the system of production and service Breakdown barriers between departments

An organization must define its values, mission and vision of the future to provide long term direction for its management and employees. Organizations should constantly improve the design of their products and services.
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7.

Institute training on the job.

Contributions by Deming
1. 2. 3. 4.

5.

6.

7.

Create constancy of purpose Adopt the new philosophy Cease dependence on inspection to achieve quality: End the practice of awarding business on the basis of price tag Improve constantly and forever the system of production and service Breakdown barriers between departments Institute training on the job.

Old methods of management built on adversial relationship will not work in todays global environment. Companies must take a customer-driven approach based on mutual cooperation between labour and management and a never-ending cycle of improvement.
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Contributions by Deming
1. 2. 3. 4.

5.

6.

7.

Create constancy of purpose Adopt the new philosophy Cease dependence on inspection to achieve quality End the practice of awarding business on the basis of price tag Improve constantly and forever the system of production and service Breakdown barriers between departments Institute training on the job.

Quality must be designed and built into the processes. Prevent defects rather than attempt to fix after occurence. Workers must take responsibility for their work rather than leave the problems for the inspectors. Managers must understand the concept of variance and seek to reduce the common 65 cause of variation.

Contributions by Deming
1. 2. 3. 4.

5.

6.

7.

Create constancy of purpose Adopt the new philosophy Cease dependence on inspection to achieve quality End the practice of awarding business on the basis of price tag Improve constantly and forever the system of production and service Breakdown barriers between departments Institute training on the job.

Cost minimization without regard to quality would lead to additional expenses by way of rework, replacement, scrap, etc. Deming urged businesses to establish long term relationships with a few suppliers leading to loyalty and opportunities for mutual improvement.
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Contributions by Deming
1. 2. 3. 4.

5.

6.

7.

Create constancy of purpose Adopt the new philosophy Cease dependence on inspection to achieve quality End the practice of awarding business on the basis of price tag Improve constantly and forever the system of production and service Breakdown barriers between departments Institute training on the job.

Improvements are necessary in both design and production. Improved design comes from understanding customer needs through continual market surveys and other sources of feedback. To build a system that can consistently produce a quality product, managers and employees must search continuously ways to improve quality and productivity.
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Contributions by Deming
1. 2. 3. 4.

5.

6.

7.

Create constancy of purpose Adopt the new philosophy Cease dependence on inspection to achieve quality End the practice of awarding business on the basis of price tag Improve constantly and forever the system of production and service Breakdown barriers between departments Institute training on the job.

Interdisciplinary teams can enhance quality and effectiveness of efforts to design and build products as compared with a strictly functionally oriented process. Team work helps to break down barriers between departments and individuals. To overcome the barriers between individuals, managers must encourage team work by assigning people to teams and changing the performance measurement system to reward group performance rather than individual 68 results.

Contributions by Deming
1. 2. 3. 4.

5.

6.

7.

Create constancy of purpose Adopt the new philosophy Cease dependence on inspection to achieve quality End the practice of awarding business on the basis of price tag Improve constantly and forever the system of production and service Breakdown barriers between departments Institute training on the job.

For continuous improvement, both management and workers require proper tools and knowledge. Providing training not only brings about improvement in quality and productivity but also improves the workers morale. Training at all levels is a necessity not optional.
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Contributions by Deming
8.

9.
9. 10. 11.

12.
13.

Institute leadership. Drive out fear Eliminate slogans, exhortations and targets for the workforce Eliminate work standards (quotas) on the factory floor Remove barriers to pride of workmanship Institute a vigorous program of education and self-improvement Accomplish the transformation.

The job of managers is leadership, not supervision. Superiors and managers must see themselves as teachers, coaches and facilitators who support the activities in immediate contact with process problems.

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Contributions by Deming
8.

9.
10. 11. 12.

13.
14.

Institute leadership. Drive out fear Eliminate slogans, exhortations and targets for the workforce Eliminate work standards (quotas) on the factory floor Remove barriers to pride of workmanship Institute a vigorous program of education and self-improvement Accomplish the transformation.

Deming identified fear as a major obstacle to improve efficiency and effectiveness and a major barrier to change and survival. Workers are afraid to report quality problems because they might not meet their quotas or they might be blamed for the problems in the system. Managers must create an environment that encourages people to ask questions, report problems and try new ideas.
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Contributions by Deming
8. Institute leadership
9.
10. 11. 12.

13.
14.

Quality problems usually come from limits in the current system. Drive out fear Eliminate slogans, exhortations Rather than using promotional and targets for the workforce messages designed to urge Eliminate work standards workers to work harder, managers (quotas) on the factory floor should give them the tools and Remove barriers to pride of training they need to work smarter. workmanship Motivation can be better achieved Institute a vigorous program of from trust and leadership than education and self-improvement from slogans and goals. Accomplish the transformation.

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Contributions by Deming
Standards and quotas are born in 8. Institute leadership short-term perspectives and create 9. Drive out fear fear of punitive action for 10. Eliminate slogans, exhortations achieving them. and targets for the workforce Workers may short-cut quality to 11. Eliminate work standards reach the numerical quotas. (quotas) on the factory floor 12. Remove barriers to pride of Unreasonable quotas cause fear workmanship and frustration and leave room for 13. Institute a vigorous program of improvement. education and self-improvement TQM sets one ultimate task for 14. Accomplish the transformation. any employee: i.e. to produce 73 quality products.

Contributions by Deming
Employees are often not recognized as 8. Institute leadership valuable human resources of the 9. Drive out fear organization. 10. Eliminate slogans, exhortations Workers are given monotonous tasks, and targets for the workforce provide with inferior machines, tools or materials, asked to work at odd hours 11. Eliminate work standards and on holidays to make up for the (quotas) on the factory floor production delays and so on 12. Remove barriers to pride of Under these circumstances many workmanship individuals cannot take pride in their 13. Institute a vigorous program of education and self-improvement work. Deming believed that one of the barriers 14. Accomplish the transformation. to pride in workmanship is performance 74 appraisal which destroys teamwork.

Contributions by Deming
8. Institute leadership
9.
10. 11. 12.

13.
14.

Drive out fear Eliminate slogans, exhortations and targets for the workforce Eliminate work standards (quotas) on the factory floor Remove barriers to pride of workmanship Institute a vigorous program of education and self-improvement Accomplish the transformation.

Investment in training represents the firms ongoing commitment to its employees. Continual training keeps the work force up-to-date with information about new developments. Developing the worth of the individual employee is a powerful motivation method
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Contributions by Deming
8. Institute leadership
9.
10. 11. 12.

13.
14.

Drive out fear Eliminate slogans, exhortations and targets for the workforce Eliminate work standards (quotas) on the factory floor Remove barriers to pride of workmanship Institute a vigorous program of education and self-improvement Accomplish the transformation.

Top managements action communicate the true importance of quality and TQM throughout the firm. According to Deming 85% of quality problems could be traced to the management while the workers are responsible for the remaining 15%. For TQM to succeed, a firms top managers must publicly demonstrate their vigorous commitments to ensure continuous quality improvement and innovation and they must openly practice what they preach. 76

Contributions by Deming- PDCA Cycle

PLAN

ACT

DO

CHECK
77

Contributions by Deming- PDCA Cycle


PLAN:

Plan ahead for change. Analyze and predict the results. DO IT: Execute the plan, taking small steps in controlled circumstances. STUDY (CHECK): Study the results. ACT: Take action to standardize or improve the process.
78

Contributions by Deming- PDCA Cycle

79

Contributions by Deming- PDCA Cycle

80

PDCA Cycle repeated to create continuous improvement


Performance

Plan Act

Do
Check

Continuous improvement

Time
81

Contributions by Deming- PDCA Cycle

82

Contributions by Deming- PDCA Cycle

83

Contributions by Deming- PDCA cycle

Plan Do Check Act

The team selects a process that needs improvement, documents the selected process, sets qualitative goals for improvements and discusses various ways to achieve the goals. After assessing the benefits and costs of the alternatives, the team develops a plan with quantifiable measures for 84 improvement.

Unit II Contributions by Deming- PDCA cycle The team implements the plan Plan and monitors progress. Do Data are collected continuously to measure improvements in the Check process. Changes if any, in the process Act are documented and further
revisions are made as needed.

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Unit II Contributions by Deming- PDCA cycle The team analyses the data Plan collected during the do step to find out how closely the results Do correspond to the goals of the plan step. Check If major shortcomings exist, the Act team may have to re-evaluate
the plan or stop the project.

86

Unit II Contributions by Deming- PDCA cycle If the results are successful, the Plan team documents the revised process so that it becomes the Do standard procedure for all who may use it. Check Act

87

Unit II Contributions by DemingSeven deadly diseases


(LER- SEE)

Lack of consistency of purpose (1) Emphasis for short term profits (2) Reliance on performance appraisal and merits Reliance on financial figures (4) & (11) Staff mobility Excessive medical costs Excessive legal costs.

(11)

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Unit II Contributions by DemingSystem of Profound Knowledge


Appreciation for

The need for managers to understand the relationships system: between functions and Knowledge of activities. statistical theory The long term aim is for Theory of knowledge everyone to win- employees, shareholders, customers, Knowledge of suppliers and the Psychology environment.

89

Unit II Contributions by DemingSystem of Profound Knowledge


Appreciation for

system: Knowledge of statistical theory Theory of knowledge Knowledge of Psychology

Knowledge and

understanding of variation, process capability, control charts, interactions and loss functions

90

Unit II Contributions by DemingSystem of Profound Knowledge


Appreciation for

system: Knowledge of statistical theory Theory of knowledge Knowledge of Psychology

As

all plans require prediction based on historical information, the theory must be understood before it can be successfully copied

91

Unit II Contributions by DemingSystem of Profound Knowledge


Appreciation for

system: Knowledge of statistical theory Theory of knowledge Knowledge of Psychology

The

understanding of human interactions, how people are motivated and what disillusions them.

92

Deming on Slogans: (useful and constructive announcement)


Better

maintenance Better training Better purchased material More statistical aid Never ending improvement Long-term survival not short-term profits Work smarter, not harder
93

Unit II Contributions by Dr. Juran

Dr. Joseph Juran was born in Romania and emigrated to America. After Deming he has had the greatest impact on the theory and practice of quality management. Like Deming he had taught quality principles to the Japanese in the 1950s. Jurans contributions can be studied under the following six topics
Internal Customer Cost of quality Quality trilogy Jurans 10 steps for quality improvement The breakthrough concept 94

Jurans contributions
Juran,

like Deming, went to Japan in 1954 and assisted the Japanese to achieve quality. Like Deming, Juran emphasized planning, organizing and controlling. However he emphasized customer satisfaction more than Deming did and focused on management and technical methods rather than worker satisfaction.
95

Jurans contributions
Juran

most influential book Quality Control Handbook (later called Juran's Quality Handbook)was published in 1951 and became a best seller.

96

Jurans contributions
Juran

tried to get organisations to move away from the traditional manufacturing-based view of quality as conformance to specification to a more used based approach, for which he created the phrase Fitness for Use. He pointed out that a dangerous product could conform to specification but would not be fit for use.
97

Jurans contributions
Juran

was concerned with management activities and the responsibility for quality, but was also concerned about the impact of individual workers and involved himself to some extent with the motivation and involvement of the work force in quality improvement activities.

98

Jurans contributions INTERNAL CUSTOMER


At

the first level a user may be an internal customer, another unit or person in the organization who is dependent on you to do his or her job. The more we understand the needs of our downstream internal customers, the better our process works.

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Jurans contributions COST OF QUALITY


What

is the Cost of Quality? The cost of ensuring that the job is done right and the cost of not doing the job right. Quality costs are the sum of money spent on ensuring that customer requirements are met and also the costs wasted through failing to achieve the desired level of quality.
100

Jurans contributions COST OF QUALITY


What

is the Cost of Quality? Thus quality cost is the cost of not meeting the customers requirement, i.e. the cost of doing things wrong. Its a term thats widely used and widely misunderstood. The cost of quality isnt the price of creating a quality product or service. Its the cost of NOT creating a quality product or service.
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Jurans contributions COST OF QUALITY


Every time work is redone, the cost of quality increases. Obvious examples include: The reworking of a manufactured item. The retesting of an assembly The rebuilding of a tool The correction of a bank statement The reworking of a service; viz. the reprocessing of a loan The replacement of a food order in a restaurant

102

Jurans contributions COST OF QUALITY


Research shows that

the costs of poor quality can range from 15%-40% of business costs (e.g., rework, returns or complaints, reduced service levels, lost revenue). Most businesses do not know what their quality costs are because they do not keep reliable statistics. Finding and correcting mistakes consumes an inordinately large portion resources.
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Jurans contributions COST OF QUALITY


Typically, the

cost to eliminate a failure in the customer phase is five times greater than it is at the development or manufacturing phase. Effective quality management decreases production costs because the sooner an error is found and corrected, the less costly it will be.

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Jurans contributions COST OF QUALITY


Quality/Cost analysis is a classic tool in quality engineering. Costs are broken into i. Cost of prevention, ii. Cost of appraisal iii. Cost of Internal failures iv. Cost of External failures

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Jurans contributions

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Jurans contributions COST OF QUALITY


1) 2) 3) 4)

Cost of prevention Cost of appraisal Cost of Internal failures Cost of External failures

Costs that are incurred on preventing a quality problem from arising. To prevent failures in the areas of:

Quality planning, Documentation (viz. manuals, procedures, policies) Process control cost Cost of training Costs associated with preventing recurring defects Costs of investigation, analysis and correction of causes of defects by quality control and engineering departments. Cost of quality awareness programme

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Jurans contributions COST OF QUALITY


1) 2) 3) 4)

Cost of prevention Cost of appraisal Cost of Internal failures Cost of External failures

Costs that are incurred in assessing that the products / services conform to the requirements. It includes:

Cost of receiving test and inspection Cost of laboratory acceptance testing Cost of installation testing Cost of installation and commissioning Cost of maintenance and calibration of testing and inspecting equipments Cost of test equipment depreciation Cost of analysis of reporting of tests and inspection results. Cost of line quality engineering Cost of vendor rejects
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Jurans contributions COST OF QUALITY


1) 2) 3) 4)

Cost of prevention Cost of appraisal Cost of Internal failures Cost of External failures

Costs linked to correcting mistakes before delivery of the product viz.

Cost associated with scrap and rejects Cost of repair and rework Cost of design changes Cost of trouble-shooting or defect failure analysis Cost of re-inspection and retesting Cost of sales discounts for inferior products Cost of downgrading Cost of downtime
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Jurans contributions COST OF QUALITY


1) 2) 3) 4)

Cost of prevention Cost of appraisal Cost of Internal failures Cost of External failures

Costs that arise from the rejection of the products/ services by the customers due to poor quality viz.

Cost of processing complaints from customers Cost of commissioning failures Cost of servicing or replacing defective items. Cost of guarantee and warranty claims Cost of lost goodwill of customer Cost of product reliability compensation (voluntary or legal) Cost of loss of sales Cost of concessions offered to customers ( due to substandard products being accepted by customers)
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Jurans contributions JURANS TRILOGY


Improvement

PRODUCT QUALITY
Planning Control
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Jurans contributions JURANS TRILOGY


Quality

planning (determine customer needs, develop product in response to needs). Quality control (assess performance, compare performance with goals, act on differences between performance and goals). Quality improvement (develop infrastructure, identify areas of improvement and implement projects, establish project team, provide teams with what they need).
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JURANS TRILOGY DIAGRAM (cont..)


QUALITY PLANNING:
Creating a process that will be able to meet established goals and do so under operating conditions." (Juran) Discovering customer needs and opportunities for reduction of waste and developing products and processes that would meet those needs and attain to those opportunities. Subject matter
An office process for producing documents An engineering process for designing products A factory process for producing goods A service process for responding to customers requests

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JURANS TRILOGY DIAGRAM (cont..)


QUALITY CONTROL:
The managerial processes used to, Evaluate actual performance, compare actual performance to goals, and take action on the differences. (Gibbons)
Some deficiencies planned Chronic waste Original quality control zone

The job of the operating forces performance should not get worse than planned Sporadic spikes sudden deviations from planned performance Respective measures are taken

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JURANS TRILOGY DIAGRAM (cont..)


QUALITY IMPROVEMENT

The organized creation of beneficial change; the attainment of unprecedented levels of performance. (Gibbons) Purpose -- to reduce and eliminate chronic waste. Achieved through:
Planned actions by upper management

Chronic waste level goes down New quality-control zone is established Closing the loop through Lessons Learned

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JURANS TEN STEPS TO QUALITY IMPROVEMENT


1. 2.

3.
4. 5. 6. 7. 8. 9. 10.

Build awareness of opportunities to improve. Set goals. Organize to reach goals. Provide training. Carry out projects to solve problems. Report progress. Give recognition. Communicate results. Keep score. Maintain momentum by making annual improvement part of the systems and processes of the company. 116

JURANS Breakthrough Concept


Juran

defines a breakthrough as `change, a dynamic, decisive movement to new, higher levels of performance'. This he contrasts with control, which means `staying on course, adherence to standard, and prevention of change'.

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JURANS Breakthrough Concept


Juran

highlighted the importance of managers' understanding of the attitudes, the organization and the methodology used to achieve breakthrough, and of how they differ from those used to achieve control.
(knowledge worker)

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JURANS Breakthrough Concept Breakthroughs in:

Leadership

Organization
Current

performance

Culture
Adaptability

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JURANS Breakthrough Concept Breakthroughs in:


Leadership Organization Current
Helps in

performance Culture Adaptability

achieving goals. Expresses clearly the mission, values and norms expected in the behavior of employees. Mobilizes an organization to achieve goals and to live by its values.
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JURANS Breakthrough Concept Breakthroughs in:


Leadership Organization Current
Establishes an

performance Culture Adaptability

organization's system in such a way that it can deal multi-functional issues. Builds an organization in such a way that every function within it is interrelated with proper authority levels and reporting lines
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JURANS Breakthrough Concept Breakthroughs in:


Leadership Organization Current
Establishes processes to

performance Culture Adaptability

know root causes of problems and methods to eliminate them. Places processes in a state of self control to avoid recurrence of causes.

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JURANS Breakthrough Concept Breakthroughs in:


Leadership Organization Current
Creation of

performance Culture Adaptability

set of behavior standards and social climate that best supports the goals of an organization. Inculcates in all functions and levels the values and beliefs that guide behavior and decision making
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JURANS Breakthrough Concept Breakthroughs in:


Leadership Organization Current
Creation of

performance Culture Adaptability

processes that sense changes. Creation of processes to evaluate information and refer to proper levels. Establishes organization structure in such a way so as to adapt to promising trends.
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JURANS TRILOGY DIAGRAM

Lessons Learned
Source: Adopted from Juran, J. M. (May 1989). Universal Approach to Managing for Quality, Executive Excellence, 6,5, ABI/Inform Global

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126

JURANS Breakthrough concept

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Jurans contributions Paretos principle


Juran noted that when a list of defects was arranged in the order of frequency, relatively few types of defects accounted for the bulk of those found. The idea of `the vital few and the trivial many' was forming. In the 1930s Juran was introduced to the work of Vilfredo Pareto - Italian sociologist and economist who had produced a mathematical model to explain the unequal distribution of wealth

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Jurans contributions Paretos principle


Juran

was, in reality, the first to identify and popularize the 80:20 rule

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Jurans contributions Road map


Juran's `road

map' provides a more detailed approach to the steps within the quality planning element of the trilogy. It is made up of a series of actions with corresponding outputs, and emphasizes the need for measurement throughout. In his book, Juran on Quality by Design,

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Jurans contributions Road map


Juran describes six activities in the road map: 1. establish quality goals; 2. identify the customer 3. determine customer needs 4. develop product features 5. develop process features 6. establish process controls; and transfer to operations.
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Jurans contributions Road map

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Contributions by Crosby

1. 2. 3.

Philip Bayard Crosby (1926 2001) is the third major influence on the management tools of TQM. He is best known for the concepts of Zero Defects and Do it right first time. Crosby contributed three major ideas to TQM Four absolutes of quality Fourteen steps to quality management Crosbys Quality Vaccine
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Contributions by Crosby:
Crosby is

probably best known for his book Quality is Free (1979) and concepts such as his Absolutes of Quality Management, Zero Defects, Quality Management Maturity Grid, 14 Quality Improvement Steps, Cost of Quality, and Cost of Nonconformance. Other books he has written include Quality Without Tears (1984) and Completeness (1994).
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Contributions by Crosby:
Crosby's method

does not dwell on statistical process control and problem solving techniques that the Deming method uses. He stated that quality is free because prevention will always be lower than the costs of detection, correction and failure. Like Deming, Crosby had fourteen points.
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Contributions by Crosby:
Attention

to customer requirements and preventing defects is evident in Crosby's definitions of quality and "non-quality" as follows: "Quality is conformance to requirements; nonquality is nonconformance."

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Contributions by Crosby:
Crosby's response to

the quality crisis was the principle of "doing it right the first time" (DIRFT) He pushed for zero defects He claimed that poor quality costs about 20 percent of the revenue; a cost that could be avoided by using good quality practices. Crosby emphasized meeting customer requirements by focusing on prevention rather than correction.
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Crosbys Four absolutes of Quality:


(1)

Quality is defined as conformance to requirements, not goodness; (2) The system for achieving quality is prevention, not appraisal; (3) The performance standard is zero defects, not that's close enough; and (4) The measure of quality is the price of nonconformance, not indexes.
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Contributions by Crosby:
Crosby's method

does not dwell on statistical process control and problem solving techniques that the Deming method uses. Cosby stated that quality is free because prevention will always be lower than the costs of detection, correction and failure. Like Deming, Crosby had fourteen points:
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Crosby's Fourteen Steps of Quality Improvement

as shown below : Step 1. Management Commitment Step 2. Quality Improvement Teams Step 3. Quality Measurement Step 4. Cost of Quality Evaluation Step 5. Quality Awareness Step 6. Corrective Action Step 7. Zero-Defects Planning

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Crosby's Fourteen Steps of Quality Improvement

(cont..) : Step 8. Supervisory Training Step 9. Zero Defects Step 10. Goal Setting Step 11. Error Cause Removal Step 12. Recognition Step 13. Quality Councils Step 14. Do It All Over Again

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Crosbys 14 points:
1.

2.

3.

4. 5. 6. 7.

Top level management must be convinced and committed and it should be communicated to the entire company. Create Quality improvement teams composed of department heads to oversee improvements. Measure processes to determine current & potential quality issues. Calculate the cost of (poor) quality Raise quality awareness of all employees Take action to correct quality issues Monitor progress of quality improvement establish 143 a zero defects committee.

Crosbys 14 points (cont..):


Train supervisors in quality improvement 9. Hold zero defects days 10. Encourage employees to create their own quality improvement goals 11. Encourage employee communication with management about obstacles to quality 12. Recognize participants effort 13. Create quality councils 14. Do it all over again (i.e., repeat steps one through thirteen)
8.

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Crosbys Quality Vaccine:


"Vaccine" is explained as medicine for management to prevent poor quality

1. 2.

3.

There are three main segments in the vaccine and each of them has components: DETERMINATION EDUCATION IMPLEMENTATION
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Crosbys Quality Vaccine (cont..):


1.

DETERMINATION: The recognition that quality improvement is vital to the growth, prosperity and even the survival of the company. Everyone is for quality but most managers dont do much about it until they realize what it costs in money, reputation and frustration to not have it.
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Crosbys Quality Vaccine (cont..):


1.

2.

EDUCATION: Each and every employee of the company has to understand their role in the quality improvement process IMPLEMENTATION: Installing the process is a matter of a logical communication and action flow that requires no additional people or equipment
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Crosbys Management Grid:


Philip Crosby in his book Quality is Free advocates the use of a simple tool to show where you are in the quality management spectrum; he calls it the Quality Management Maturity Grid. The grid is a simple 6 x 6 matrix that shows different stages of maturity of the companys quality management against six different quality management categories (management understanding of quality, problem handling, cost of quality, etc).

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Crosbys Management Grid:


The

lowest stage of maturity is called Uncertainty the organization is inexperienced, quality management is a low priority and reactive, etc Then as quality management matures it goes through the stages of Awakening, Enlightenment, Wisdom, then the highest level, Certainty.

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Crosbys Management Grid:


Each

point maturity versus category on the grid has a brief description of how that combination appears in the company; For instance, in the Uncertainty stage, Problem Handling looks like Problems are fought as they occur; no resolution; inadequate definition; lots of yelling and accusations.
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Crosbys Management Grid:

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Recognizing and rewarding Quality


Promotion

of high quality goods and

services
Malcolm Deming

Baldrige National Quality Award (MBNQA) (United States) Prize (Japan) Quality Award (European Union) certification
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European ISO9000

The integrated framework of the Baldrige Award criteria

Source: 2004 Criteria for Performance Excellence, U.S. Dept. of Commerce, Baldrige National Quality Program, National Institute of Standards and Technology, Gaithersburg, MD 20899. (www.quality.nist.gov)

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Continual improvement of the quality management system


Customers (and other interested parties)

Customers (and other interested parties)

Management responsibility

Resource management
Requirements

Measurement, analysis and improvement

Satisfaction

Input
Key: Value adding activity information flow

Product realisation

Output

Product

Source: BS EN ISO 9001:2000

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Overview of the EFQM Excellence Model

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Obstacles to Implementing TQM


Lack of a company-wide definition of quality. Lack of a formalized strategic plan for change. Lack of a customer focus. Poor inter-organizational communication. Lack of real employee empowerment. Lack of employee trust in senior management. View of the quality program as a quick fix. Drive for short-term financial results. Politics and turf issues.

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BENEFITS OF TQM

According to survey of manufacturing firms it was found that TQM had improved
quality,
employee teamwork, working relationships, customer satisfaction, employee

participation,

satisfaction, productivity, communication, profitability and market share.


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BENEFITS OF TQM

The study showed that small organizations outperform larger organizations. Recent studies have shown that only 30% of manufacturing organizations have successfully implemented TQM

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MISSION STATEMENT The Mission statement is usually one paragraph, describes the function of the organization. It is designed to address the question, What business are we in? The Mission statement answers the following questions: Who are we? Who are the customers? What we do? How we do it?

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MISSION STATEMENT (cont..)


According to

ISO 9004, a mission statement explains why an organization exists. It defines its reason for being (its raison d'tre). We exist to create, make and market useful products and services to satisfy the needs of our customers throughout the world Texas Instruments

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VISION STATEMENT
A

vision statement is a short declaration of what an organization aspires to be tomorrow. The vision statement should be coined in such a way that the leaders and the employees working in the organization should work towards the achievements of the vision statement. It is the ideal state that might never be reached; but on which one will work hard continuously to achieve. Successful visions provide a brief guideline for decision-making.
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VISION STATEMENT (cont..)


The

vision statement provides a clear picture of where it is headed and why it is According to ISO 9004, an organization's vision describes what it wants to be and how it wants to be seen by interested parties. To be the leading consumer battery company in the world Duracell International

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QUALITY POLICY
An

organizations quality policy defines top managements commitment to quality. A quality policy statement should describe an organizations general quality orientation and clarify its basic intentions. Quality policies should be used to generate quality objectives and should serve as a general framework for action.
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QUALITY POLICY
Quality

policies can be based on the ISO 9000 Quality ManagementPrinciples and should be consistent with the organizations other policies. 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 employee Xerox Corporation
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QUALITY POLICY
The

Total Quality Philosophy at Procter & Gamble focuses on delivering superior customer satisfaction and has four principles: Really know our customers and consumers Do right things right Concentrate on improving systems Empower people
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QUALITY POLICY at Procter & Gamble


Really

know our customers and consumers Do right things right Concentrate on improving systems Empower people

Know

those who resell our products and those who finally use them and then meet and exceed their expectations.

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QUALITY POLICY at Procter & Gamble


Really

know our customers and consumers Do right things right Concentrate on improving systems Empower people

Improve

the capability of our basic business systems and subsystems.

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QUALITY POLICY at Procter & Gamble


Really

know our customers and consumers Do right things right Concentrate on improving systems Empower people

This

means removing barriers and providing a climate in which everyone in the organization is encouraged and trained to make his or her maximum contribution to business objectives
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QUALITY OBJECTIVES
A

quality objective is a quality oriented goal. A quality objective is something you aim for or try to achieve. Quality objectives are generally based on or derived from the organizations quality policy and must be consistent with it. They are usually formulated at all relevant levels within the organization and for all relevant functions.
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QUALITY OBJECTIVES
A

P&G statement of purpose which captures the what, how and expected results of their quality efforts is stated as: We will provide products of superior quality and value that best fill the needs of the worlds consumers. We will achieve that purpose through an organization and a working environment which attracts the finest people.
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QUALITY OBJECTIVES

P&G statement of purpose (cont..) Through the successful pursuit of our commitment, we expect our brands to achieve leadership share and profit position so that as a result, our business, our people, our shareholders and the community in which we live and work, will prosper
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To my dear students:
Please feel free to share it. If you are making some changes or have some suggestions for improvements, please send me mail which will be greatly appreciated. Gnanasekharan, Agni College of Technology, Thalambur gnana5030@gmail.com

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