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TQM

TQM

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Publicado porbrizbhushan
Definition, cost of control
Definition, cost of control

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Categories:Types, Research
Published by: brizbhushan on Sep 08, 2010
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11/08/2010

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Total Quality Management

Presented By: Brij Bhushan Singh (K - 13) Harjeet Singh (K – 17) Sameer Singh (J – 29)
1

Introduction
n

In today’s world due to insufficient quality or indifference to quality lead to disputes, which imposes serious drain on the financial resources of a company and limits profit potential. To be competitive in today’s market, it is essential for construction companies to provide more consistent quality and value to their owners/customers. It is high time to develop better and more direct relationships with our owners/customers, to initiate more teamwork at the jobsite, and to produce better quality work.
2

n

n

n

Organization wide n Quality – Degree of Excellence a product or service provides to the customer in present and future. n Management – Act , art, or manner of handling , controlling, directing, etc. TQM is the art of managing the whole to achieve excellence.

Total – Made up of the whole(or) Complete i.e.

3

Dimensions of Quality ,include repair. Durability- Useful life
Service-Resolution of problems,ease of repair. Response- Human relations with Customers. Aesthetics-Sensory Features. Reputation- Past performance, Company Image.
4

Definition:
"TQM is a management approach for an organization, centered on quality, based on the participation of all its members and aiming at long-term success through customer satisfaction, and benefits to all members of the organization and to society."

5

BASIC PRINCIPLES OF TQM
Approach Scope Scale Philosophy Standard Control Theme Management Led Company Wide Everyone is responsible for Quality Prevention not Detection Right First Time Cost of Quality On going Improvement

FOUR KEY PRINCIPLES

•Measure quality so you can affect it •Focus on a moving customer •Involve every employee •Think long term - Act short term

Evolution of quality Era Evolution
TQM

TQC & CWQC (Company wide quality control) TQC SQC Inspection Foreman Craftsman

Years
1900 1920 1940 1960 1980 1990 2000 8

Evolution of quality – Means & Focus
1975 1980 1985 1990 1995

2000

Productivity Quality Circle Quality of Work life

Quality

Total Quality

TQC/TQM

Employee Involvement

Self Self Directed Directed/Managed Teams Employees Teams Empowerment

Operation

Customers

Innovations

9

n

Walter Shewart u In 1920s, developed control charts u Introduced the term “quality assurance” W. Edwards Deming u Developed courses during World War II to teach statistical quality-control techniques to engineers and executives of companies that were military suppliers u Gave PDCA Cycle Joseph M. Juran u Followed Deming to Japan in 1954 u Focused on strategic quality planning

Gurus of TQM

n

n

10

The Deming Cycle or PDCA Cycle PLAN

ACT

Plan a change to the process. Predict the effect this change will have and plan how the effects will be measured

DO

Adopt the change as a permanent modification to the process, or abandon it.

Implement the change on a small scale and measure the effects

CHECK
Study the results to learn what effect the change had, if any.

Joseph M. Juran and the Cost Of Quality

n

Prevention Costs: It includes those activities which removes and
It includes activities like: u Quality planning costs
« costs

prevent the defects from occurring in production process.

n

of developing and implementing quality management program

u Product-design
« costs

costs

of designing products with quality characteristics
13

u Process

costs

Cont….

« costs

expended to make sure productive process conforms to quality specifications

u Training

costs

« costs

of developing and putting on quality training programs for employees and management

u Information
« costs

costs

of acquiring and maintaining data related to quality, and development of reports on quality performance

14

Appraisal Costs:
n

These are the cost incurred to measure the quality of product. It includes those activities to reduce the no. of defective products. It includes following activities: u Inspection and testing
« costs

n

n

of testing and inspecting materials, parts, and product at various stages and at the end of a process.

Cont….
u Test

equipment costs
of maintaining equipment used in testing quality characteristics of products

« costs

u Operator

costs

« costs

of time spent by operators to gar data for testing product quality, to make equipment adjustments to maintain quality, and to stop work to assess quality

16

Internal Failure Costs: 
n

These are the cost incurred when the product defects are discovered, prior to the delivery of products to customers. It include following costs u Scrap costs
« costs

n

of poor-quality products that must be discarded, including labor, material, and indirect costs

u Rework

costs

« costs

of fixing defective products to conform to quality specifications.

Cont….
u Process

failure costs

« costs

of determining why production process is producing poor-quality products

u Process

downtime costs

« costs

of shutting down productive process to fix problem

u Price-downgrading
« costs

costs

of discounting poor-quality products— that is, selling products as “seconds”
18

External Failure Costs:
n

These are cost arises when low quality products are delivered to the customers and it results in customer dissatisfaction. It includes following costs: u Customer complaint costs
« costs

n

of investigating and satisfactorily responding to a customer complaint resulting from a poor-quality product

u Product

return costs

« costs

of handling and replacing poor-quality products returned by customer

Cont….
u Warranty

claims costs
of complying with product warranties

« costs

u Product

liability costs

« litigation

costs resulting from product liability and customer injury

u Lost

sales costs
incurred because customers are dissatisfied with poor quality products and do not make additional purchases
20

« costs

Joseph M. Juran and the Cost Of Quality
Prevention & Appraisal Cost

Total Costs

Costs

Point of “Enough quality” Production

Internal & External Failure Cost

Real Life

TQM has being implemented in TVS Group. Boeing Aircraft Reliance Tata L&T HMT ITI

n n n n n n n n

“Gold in the Mine”

22

Obstacles
Top management commitment Changing Organization Culture Improper planning Continuous Training & Education

23

Obstacles
Organization Structure & Departments Data’s & Facts For Effective Decisions Internal & External CustomersDissatisfaction Empowerment & Teamwork Continuous Improvement
24

Benefits
Improved Quality Employee Participation Team Work Internal & External Customer Satisfaction Productivity ,Communication Profitability & Market Share
25

Quality is a Journey, not a Destination

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