Total Quality Management PDF

Total Quality Management A01_TOTAL-QUALITY-M03_SE_XXXX_FM.indd 1 11/10/2016 4:58:52 PM This page is intentionally left blank Total Quality Management Third Edition Poornima M. Charantimath Karnataka Law Society’s Institute of Management Education and Research, Belgaum A01_TOTAL-QUALITY-M03_...

Total Quality Management A01_TOTAL-QUALITY-M03_SE_XXXX_FM.indd 1 11/10/2016 4:58:52 PM This page is intentionally left blank Total Quality Management Third Edition Poornima M. Charantimath Karnataka Law Society’s Institute of Management Education and Research, Belgaum A01_TOTAL-QUALITY-M03_SE_XXXX_FM.indd 3 11/10/2016 4:58:53 PM Copyright © 2017 Pearson India Education Services Pvt. Ltd Published by Pearson India Education Services Pvt. Ltd, CIN: U72200TN2005PTC057128, formerly known as TutorVista Global Pvt. Ltd, licensee of Pearson Education in South Asia. No part of this eBook may be used or reproduced in any manner whatsoever without the publisher’s prior written consent. This eBook may or may not include all assets that were part of the print version. The publisher reserves the right to remove any material in this eBook at any time. ISBN 978-93-325-7939-2 eISBN 978-93-325-8698-7 Head Office: A-8 (A), 7th Floor, Knowledge Boulevard, Sector 62, Noida 201 309, Uttar Pradesh, India. Registered Office: 4th Floor, Software Block, Elnet Software City, TS 140, Block 2 & 9, Rajiv Gandhi Salai, Taramani, Chennai - 600 113, Tamil Nadu, India. Fax: 080-30461003, Phone: 080-30461060 www.pearson.co.in, Email: [email protected] Total Quality Management, 3e.indd 1 12/5/2016 2:49:47 PM To my in-laws, Late Sri. N. C. Charantimath and Late Smt. Lalita Devi Charantimath A01_TOTAL-QUALITY-M03_SE_XXXX_FM.indd 5 11/10/2016 4:58:53 PM About the Author Poornima M. Charantimath is a professor in the area of total quality management and entrepreneurship development at Karnataka Law Society’s Institute of Management E ­ ducation and Research, Belgaum. Dr. Charantimath has been actively involved in teaching, research, consultancy and administration in a distinguished career spanning more than 25 years. She received her master’s degree in management studies from the U ­ niversity of the West of England, Bristol, the United Kingdom, and her Ph.D. in management from the Department of Management Studies, Karnataka University, Dharwad. Dr. Charantimath has served as Deputy Director at the Indian Institute of Materials Management, Bangalore, and Director at KLS Institute of Management Education and Research, Belgaum. She is a fellow of the Institution of Engineers (India) and a member of the Board of Studies at Visvesvaraya Technical University, Belgaum. She is also a Ph.D. guide for the research ­students of Jawaharlal Nehru Technological University, Hyderabad and Rani Chennamma University at Belagavi. She is the author of Entrepreneurship Development and Small Business Enterprises (Pearson Education, 2014). She has also contributed text, case studies and entrepreneurial profiles to eleventh Global Edition of book titled “Entrepreneurship and Effective Small Business Management” authored by Norman M Scarborough and Jeffrey R Cornwall published by Pearson Education. She has been awarded as a pioneering faculty member by Deshpande Foundation’s entrepreneurship academy for promoting entrepreneurship education in sandbox region. She is also teaching a module on international entrepreneurship an Indian Perspective at Leeds University, UK. She is also a member governing body of S.G. Balekundri Institute of Technology, Belagavi, Karnataka. Dr. Charantimath has been awarded the Association of Overseas Technical Scholarship (AOTS) and has attended a workshop on TQM and Strategic Management at Osaka, Japan. A recipient of the Distinguished Engineer Award from the Institution of Engineers, Belgaum, and the Achiever of the Year Award from Round Table India, she is also an assessor for the CII-EXIM Bank Award for Business Excellence and the Ramakrishna Bajaj National Quality Award. Dr. Charantimath has also conducted executive development programmes and consultancy services for several organizations such as Tata Motors, the Aditya Birla group, Hindustan Latex Limited and G5 Solution in the areas of TQM and strategic management. She may contacted at [email protected] A01_TOTAL-QUALITY-M03_SE_XXXX_FM.indd 6 11/10/2016 4:58:54 PM Contents Forewordxii Prefacexiii Reviewersxx 1 2 Quality Concepts Quality Natural Foods Limited 1 Introduction 2 Definitions of Quality 3 Garvin’s Approaches to Defining Quality 4 Quality Management 5 Important Quality Terms 6 Importance of Quality 7 Quality and Profit 8 Types of Quality 9 Three Levels of Quality 10 The Five Paradigms of Quality 11 Dimensions of Product Quality 12 Dimensions of Service Quality 12 Old Quality versus New Quality 14 Cost of Quality (COQ) 15 Quality Cost Indices 22 Summary 24 Key Terms 25 Case Study 25 Exercises 27 Short-answer Questions 28 Match the Following 28 Discussion Questions 29 Projects 29 End Notes 29 Quality Gurus Eliyahu M. Goldratt 31 Introduction 32 Walter Shewart 32 W. Edwards Deming 33 Joseph Juran 38 Armand Feigenbaum 40 Philip Crosby 41 Kaoru Ishikawa 42 Genichi Taguchi 43 A01_TOTAL-QUALITY-M03_SE_XXXX_FM.indd 7 1 31 Quality Characteristic 49 Dr Shingo Shigeo 52 Masaaki Imai 56 Summary 56 Key Terms 57 Case Study 58 Short-answer Questions 59 Match the Following 59 Discussion Questions 59 Projects 60 End Notes 60 3 The Philosophy of Total Quality Management61 TVS Motor Company 61 Introduction 62 Definitions of TQM 63 The Total Quality System 63 The Evolution of TQM—From Inspection to Total Quality Management 64 Seven Phases in the Development of TQM 68 Principles of Total Quality Management 69 The Key Elements of TQM 71 Core Concepts of TQM 74 Total Quality Management Excellence Model (TQMEX) 77 Traditional Organization versus TQM Organization 79 Common Barriers to the Implementation and Development of a TQM Programme 80 Prerequisites for TQM 80 TQM Implementation 81 Benefits of TQM 82 Summary 83 Key Terms 84 Case Study 84 Short-answer Questions 86 Match the Following 87 Discussion Questions 87 Projects 87 End Notes 87 11/10/2016 4:58:54 PM viii 4 5 Contents Leadership and Strategic Planning Quality Leader Venu Srinivasan 89 Introduction 90 Defining Leadership 90 Quality Leadership 91 Leadership Functions 91 Visionary Leadership 92 Six Natural Levels of Leadership Competencies Corporate Social Responsibility 95 Strategic Quality Management 104 Balanced Scorecard 111 Quality Culture 113 Change Management: Leading the Change to Quality Culture 116 Summary 121 Key Terms 122 Case Study 122 Short-answer Questions 127 Match the Following 127 Discussion Questions 127 Projects 128 End Notes 128 TQM Kitemarks Tata Business Excellence Model (TBEM) 130 Introduction 131 Japan’s Deming Prize 132 Malcolm Baldrige National Quality Award (MBNQA) 134 IMC Ramakrishna Bajaj National Quality Award (IMC RBNQA) 140 The European Quality Award 142 CII-EXIM Bank Award for Excellence 145 Maturity Models 149 Capability Maturity Model Integration (CMMI) Summary 161 Key Terms 162 Case Study 162 Short-answer Questions 165 Match the Following 165 Discussion Questions 165 Projects 165 End Notes 166 89 93 7 130 152 6 Statistical Concepts in Quality Management167 Quality Assurance at Apollo Hospitals 167 Introduction 168 A01_TOTAL-QUALITY-M03_SE_XXXX_FM.indd 8 Variation 168 Probability Distributions 170 Measurement System Analysis (MSA) 172 Process Capability 176 Sampling 183 Quality Assurance 191 Summary 196 Key Terms 197 Case Study 198 Exercises 200 Short-answer Questions 201 Match the Following 201 Discussion Questions 202 Projects 202 End Notes 202 8 Six Sigma Lean Six Sigma 204 Introduction 205 Key Six Sigma Concepts 206 The Six Sigma Quality Level 206 Six Sigma versus Three Sigma 207 Shifts and its Role 208 Defects Per Million Opportunities (DPMO) Six Sigma Strategy 214 Implementing Six Sigma 215 Define, Measure, Analyse, Improve and Control (DMAIC) 216 Define, Measure, Analyse, Design and Verify (DMADV) 219 Six Sigma Training Programmes 221 Summary 224 Key Terms 225 Case Study 225 Short-answer Questions 231 Mutiple-choice Questions 232 Match the Following 235 Discussion Questions 236 Projects 236 End Notes 236 Quality Improvement Tools Seven QC Tools 237 Introduction 238 The Pareto Chart 238 Cause-and-effect Diagram 240 Check Sheet 241 Histogram 242 204 212 237 11/10/2016 4:58:54 PM Contents Scatter Diagram 243 Control Charts 246 Graphs 262 Applications of the Seven Quality Control Tools in Six Sigma 263 The Seven New Management and Planning Tools 264 Summary 276 Key Terms 276 Case Study 277 Short-answer Questions 280 Match the Following 280 Discussion Questions 280 Projects 281 End Notes 281 9 10 Kaizen—Continuous Improvement 282 Kaizen Participation Index 282 Introduction 283 Concepts of Kaizen 284 Lean 286 What is the 5 S? 292 Kaizen versus Innovation 297 Company-wide Quality Control (CWQC) 298 Kaizen—The Practice 299 Quality Function Deployment (QFD) 301 Quality Control Circles (QCC) 304 The Suggestion System 312 Poka-yoke 314 Quality of Work Life 316 Summary 319 Key Terms 321 Case Study 321 Short-answer Questions 323 Match the Following 323 Discussion Questions 323 Projects 324 End Notes 324 Breakthrough Improvement 325 Breakthrough Improvements at Apple Inc. 325 Introduction 326 Invention and Innovation 327 Creativity 328 Brainstorming 333 Innovation 336 The Theory of Inventive Problem Solving (Teorija Rezbenija Izobretatelashib Zadach, TRIZ) 341 A01_TOTAL-QUALITY-M03_SE_XXXX_FM.indd 9 ix Value Analysis/Value Engineering 346 Summary 351 Key Terms 352 Case Study 352 Short-answer Questions 354 Match the Following 354 Discussion Questions 355 Projects 355 End Notes 355 11 Benchmarking Benchmarking at Xerox Corporation 356 Introduction 357 Benchmarking: What Is It? 357 An Overview of Benchmarking 358 The Evolution of Benchmarking 358 Advantages of Benchmarking 360 Types of Benchmarking 361 Designing the Benchmarking Process 363 Prerequisites for Benchmarking 367 Summary 371 Key Terms 372 Case Study 372 Short-answer Questions 375 Match the Following 375 Discussion Questions 376 Project 376 End Notes 376 356 12 Business Process Re-engineering 377 BPR at Mahindra & Mahindra Limited 377 Introduction 378 When Is BPR Used? 379 Key Concepts of BPR 379 The 3 R’s of Re-engineering 380 Emergence of BPR 381 Requirements of the Re-engineering Process 383 Rules of BPR 384 Benefits of BPR 385 Business Process Re-engineering Methodologies 387 Consolidated Methodology 389 Implementation of BPR 392 Re-engineering in the Service and Manufacturing Industry 395 Re-engineering Structure 397 Limitations and Issues in BPR 401 The Relationship between BPR and TQM 402 11/10/2016 4:58:54 PM x Contents Summary 403 Key Terms 404 Case Study 405 Discussion Questions 406 Short-answer Questions 407 Match the Following 407 Discussion Questions 407 Projects 408 End Notes 408 13 Business Process Management BPM at General Electric 409 Introduction 410 Designing Processes for Quality 412 Process Mapping 415 The BPM Implementation Framework 424 Summary 428 Key Terms 428 Case Study 429 Short-answer Questions 432 Match the Following 433 Discussion Questions 433 Project 433 End Notes 433 409 14 Total Productive Maintenance TPM at Toyota Kirloskar Auto Parts Private Limited 434 Reliability 435 Failure Mode and Effect Analysis (FMEA) 440 Total Productive Maintenance (TPM) 445 Eight Pillars of TPM 449 Summary 458 Key Terms 459 Case Study 460 Exercise 462 Short-answer Questions 462 Match the Following 463 Discussion Questions 463 Projects 463 End Notes 463 434 15 Customer-driven Quality 464 Customer-driven Quality at Wal-Mart Inc. 464 Introduction 465 Who Is a “Customer”? 466 Customer Perceptions of Quality 468 Need for Customer Focus 468 A01_TOTAL-QUALITY-M03_SE_XXXX_FM.indd 10 Buyer–Supplier Relationships 468 Customer Relationship Management (CRM) 470 CRM Defined 470 Emergence of CRM 471 Schools of Thought on CRM 473 Purpose/Objectives of CRM 473 Components of CRM 474 The Ladder of Loyalty 475 Levels of Relationship Strategies for Bonding Customer Relationship 477 Customer Defections 480 Customer Retention Programmes 481 Economics of Customer Relationship Management 482 Creating Relationship Value (Lifetime Value of Customers) 483 Customer Acquisition and Segmentation 487 Framework for Building CRM Strategy 489 Ten Tips to Build Customer Loyalty 490 Models of CRM 491 CRM in B2B and B2C Context 495 CRM Scorecards 496 Role of IT in CRM 496 Different Levels of e-CRM 497 CRM Future 498 Summary 499 Key Terms 501 Case Study 502 Short-answer Questions 503 Match the Following 504 Discussion Questions 504 Projects 504 End Notes 505 16 TQM in Services 506 Quality Services at Housing Development Finance Corporation Limited 506 Introduction 507 Service Industry and Quality 508 Value in the Service Industry 508 Classification of Services 510 Defining Service Quality 511 The SERVQUAL Model 518 Hospitality Sector 523 Improving the Service Quality 525 Summary 527 Key Terms 528 Case Study 528 Short-answer Questions 530 11/10/2016 4:58:54 PM Contents Match the Following 530 Discussion Questions 530 Projects 531 End Notes 531 17 Quality Management System 532 Integrated Management System 532 Introduction 533 Occupational Health and Safety Management Systems 554 Institutions Promoting Quality Movement in India 533 Development of the ISO 9000 Standards 535 Quality Management Systems: An Introduction 537 Process Approach 538 ISO 9001:2015 Quality Management Systems Requirements 540 ISO 14000 Series 550 Summary 560 Key Terms 561 Case Study 562 Short-answer Questions 564 Match the Following 564 Discussion Questions 564 Projects 565 End Notes 565 A01_TOTAL-QUALITY-M03_SE_XXXX_FM.indd 11 18 xi Management Audit 566 National Accreditation Board for Certification Bodies 566 Introduction 567 ISO 19011:2011 Versus ISO 19011:2002 568 ISO 19011:2011 Versus ISO IEC 17021:2015 570 Guidelines for Auditing Management Systems ISO 19011:2011 571 ISO/IEC 17021:2015 594 Certification 597 Summary 602 Key Terms 603 Case Study 604 Short-answer Questions 606 Match the Following 606 Discussion Questions 607 Projects 607 End Notes 607 Index    609 11/10/2016 4:58:54 PM Foreword Traditionally, manufacturers and retailers lowered prices to clear inventory. Today, they’re cutting prices because consumers are demanding it. The recent global meltdown and recession has put great pressure on the organizations to produce the best quality products at the most affordable prices. Nano has already hit the market. The car has redefined the meaning of quality. It is not just a car—it is the automobile revolution. Novatium has come out with a PC for just Rs 3,000. Real estate now promises to give the best quality homes at previously unimagined prices. Telecom companies are reducing the cost of talk time every day. The price of white goods is coming down every day. In the economy, struggling to come out of the recession, low price rules. The challenge is not just to produce great quality, but to provide the best quality in the most efficient and cost-effective manner. This book will enable organizations to maximize their quality of products and services through application of various quality improvement tools and minimize the cost by adoption of many proven techniques. It is important to know that quality is a “disciplined approach” and while lot of attention is paid to the technical side of quality, the human side of quality should not be forgotten. Quality is a passion to make a valuable contribution to the world we live in. We are also in a world where today’s breakthrough product is tomorrow’s undifferentiated ­commodity. Innovation will drive the economy in the future and the companies have to play a proactive rule. Organizations must establish innovation as a mainstream business process with defined people, responsibilities and targets, failing which innovation will be rhetoric (lucky accident). Quality is completely linked to the present and the future needs of the customers, and hence innovation has become integral to quality—two sides of the same coin. In this world of fast-changing expectations, innovation is the only insurance against irrelevance and the antidote to margin crushing competition. Besides providing the best quality at the most affordable prices, the companies will have to innovate new products, services, business models, sources of raw materials and delivery mechanisms. They must understand unmet customer needs and have the ability of translating unperceived and unarticulated needs of the customer into development of new products and services in the fastest possible time. Time is of essence and the companies must reduce their innovation cycle time to be present in the market before the competition. Innovation is the only way for high growth and sustainable competitive advantages. This book on quality covers an extensive compilation of topics. I am sure the students of management and engineering, academicians and organizations will benefit a great deal from the extensive topics of Kaizen, breakthrough improvements, value analysis, TRIZ mechanism, TPM, quality management system and quality models given in this book. I wish the readers great success in their quality and innovation journey through the third edition of this rich treasure of quality by Ms. Poornima Charantimath. Pravin Rajpal Indian Management Expert, FICCI Quality Forum www.pravinrajpal.com A01_TOTAL-QUALITY-M03_SE_XXXX_FM.indd 12 11/10/2016 4:58:54 PM Preface Total quality management (TQM) is an approach to business that looks critically at the products and services a company provides in relation to the processes it employs to create them. It also focuses on the workforce to ensure that outputs fully satisfy customer requirements. Organizations that follow the TQM approach consistently meet or exceed customer requirements. TQM can, therefore, be referred to as a journey with the sky as the limit for excellence. The first edition of Total Quality Management was written to help students develop a basic appreciation of quality concepts and learn the tools and techniques of TQM. The second edition of the book was updated and enlarged to conform to TQM’s goal of continuous improvement. The third edition of the book has now been updated and enlarged based on changes happening in the industry. Changes in the Third Edition The third enlarged and revised edition of Total Quality Management comprises of 18 chapters which embraces the art of managing the whole to achieve excellence. We all agree completely – the war for better quality must continue – which is why we continue to update and improve this book. The significant changes in the third edition include: • Chapter opening vignettes with a Picture: Each chapter begins with a picture serve as ice-breakers and narrate the key concepts of the chapter through a powerful story around a customer or company for better understanding of the chapter. • Marginal additions: Each page has provided with marginal additions to enhance learning. • Balanced coverage of the manufacturing and service sectors: The manufacturing and service sectors have been covered in greater detail by showcasing real-world practices from the Indian and global scenarios. • Updated QMS ISO 9001:2015: The revised version of Quality Management System (QMS) ISO 9001:2015 is explained is more compatible with other management systems such as ISO 14001:2015 Environmental Management System (EMS) and ISO 45001:2016 Occupation Health and Safety Management System, making it more effective and efficient to integrate with various other management systems. • Introduction to Integrated Management System: Chapter 17 introduces an integrated management system (IMS) which combines all related components of a business into one system for easier management and operations. Quality (QMS), Environmental (EMS), and Occupation Health and Safety Management Systems (OHSMS) are often combined and managed as an IMS. This chapter also provides information on institutions supporting quality movement in India. • Updated ISO Management audit ISO 19011:2011 and ISO IEC 17021:2015: Chapter 18 provides the revised version of ISO audit: ISO 19011: 2011 first and second party audit and ISO IEC 17021:2015 third party audit. • Comprehensive supplement package: A complete supplement package comprising an instructors’ manual, PowerPoint lecture slides and multiple-choice questions support interactive teaching and learning.  Structure of the Book Total Quality Management (3/e) comprises 18 chapters, which focus on understanding the TQM philosophy, quality planning, statistical quality control, quality improvement and customer-driven quality. The key concepts discussed in each chapter are as follows: Chapter 1 explains the various definitions of quality, importance of quality, different types and levels of quality, paradigms of quality, dimensions of product and service quality. A01_TOTAL-QUALITY-M03_SE_XXXX_FM.indd 13 11/10/2016 4:58:54 PM xiv Preface Chapter 2 focuses on the contributions made by American and Japanese quality gurus in the area of TQM. Chapter 3 provides an insight into the evolution of TQM, identifies the common barriers to the implementation of TQM and also discusses the steps in implementing TQM & Total Quality Management Excellence (TQMEX) Model. Chapter 4 explains leadership and corporate social responsibility (CSR), strategic quality management and also describes the importance of managing change in organizations. Chapter 5 discusses the Deming Prize, the Malcolm Baldrige National Quality Award, the Ramakrishna Bajaj National Quality Award, the European Quality Award, the CII-EXIM Bank Award for Business Excellence, Tata Business Excellence model (TBEM), Rajiv Gandhi National Quality award, the International Quality Maturity Model and Capability Maturity Model Integration (CMMI). Chapter 6 explains the important statistical concepts in quality management. It also describes process capability, sampling plans, quality assurance, quality policy and quality manual. Chapter 7 discusses Six Sigma, Lean Six Sigma and the steps in implementing Six Sigma (DMAIC, DMADV and DFSS) and discusses various Six-Sigma training programmes. Chapter 8 explains the seven quality control tools and the seven new management and planning tools. Chapter 9 provides an insight into Kaizen, 5 S, company-wide quality control, quality function deployment, house of quality and the relevance of quality circles. Chapter 10 explains creativity, innovation, the S curve, TRIZ, systematic inventive value augmentation, value analysis and value engineering. Chapter 11 elaborates on the essence of benchmarking, evolution of benchmarking, process of benchmarking, types of benchmarking and the steps in the benchmarking process. Chapter 12 deals with business process re-engineering (BPR), the principles and advantages of BPR, the methodology of BPR, the implementation phases and explains re-engineering in the manufacturing and the service industry. Chapter 13 explains the relevance and importance of business process management. Chapter 14 deals with the concept of total productive maintenance (TPM), the pillars of TPM and overall equipment effectiveness (OEE). Chapter 15 focuses on customer relationship management (CRM), customer value management and CRM in the B2B and the B2C context. Chapter 16 deals with the importance of TQM in the service sector. It introduces the concept of service quality and discusses models used for measuring and improving service quality. Chapter 17 deals with quality management system ISO 9001:2015, EMS ISO 14001:2015, OHSAS ISO 45001:2016 and Integrated Management System. It explains the benefits of ISO certification and discusses the organisations promoting quality movement in India. Chapter 18 discusses the standards for planning and performing management audits ISO 19011:2011 (first and second party audit) & ISO IEC 17021 2015 (third party audit), the standards for selecting auditors and the standards for managing audit programmes. It also explains steps to ISO certification, role of certification bodies and registration requirements. A01_TOTAL-QUALITY-M03_SE_XXXX_FM.indd 14 11/10/2016 4:58:55 PM Preface xv keY features 2 Total Quality Management 1 Chapter opening vignettes with a picture 4 Quality has been the primary consideration in the origin and policy of the business. The commitment to quality required investment in people and equipment, including appropriate facilities for receiving, handling, and storage under safe and hygienic conditions. Strict adherence to, andConcepts implementation of, quality measures assured that products procured and disQuality tributed by the company always matched high quality standards. Products are sourced from suppliers with international standards accreditation such as ISO and with whom ongoing contact was maintained. Quality is closely monitored to the point of the end users. The commitment to customers was ensured with adequate inventory, reliable distribution networks. Total Quality Management and new product offerings. “Quality is not an art, it isFitness a habit.”for use or purpose is a definition of quality that eval performs for its intended use. Aristotle Upon completion of thisQuality chapter, is youthe willconformance be able to: to requirements/specifications. Th find out, definitions how welland a product or service meets the targets and 1. Understand the various the importance of quality 2. Describe the designers. different types and levels of quality QualIty natural foods lIMIted 3. Explain the five paradigms of quality In its broadest sense, quality is a degree of excellence—the extent to which something is fit 4. Understand the eight dimensions productfunction quality and the determinants for its purpose. In the narrow sense, product or service quality is defined as conformance Quality is the lossof(from variation and harmful effects with requirements, freedom from defects or contamination, or simply a degree of customer of service quality satisfaction. A business would have no profits if it failed to create and retain satisfied customafter being shipped, other than any losses caused by its intrinsi ers. Providing products and services which meet customer needs and expectations creates 5. Describe differences between old quality and new quality satisfied customers. Anticipating future needs and expectations retains satisfiedthe customers. Therefore, quality is vital to the survival of any enterprise. 6. Understand the costs of poor quality Quality Natural Foods Ltd is a well-established and reputed food distribution company Quality is meeting and exceeding the present and future requir continuous basis. servicing the ethnic markets of Canada. It is a success story of its founders, Jar nail Singh and Sheila Singh, who understood the need for a high quality supplier of traditional ethnic products to the Asian market in Canada. Over 20 years, the company has acquired institutional ntroductIon knowledge, long-term relationships, and widespread recognition that continue to drive its growth. As a result, the company is now the leader in products and service for Asian ethnic If an in Canada, automobile population serving retailers from coast to coast. Bird’s-eye view: I We are surrounded by quality failures that are appallingly expensive in terms of money lost, opportunities foregone and grief incurred. Poor quality processes at its Bhopal pesticide plant cost the Union Carbide Corporation 420 million pounds in compensation claims in Customer-driven of Quality Concepts 5 Definitions March 1989. More than 3,400Quality people have died since December 1984 after a cloud of deadly Bird’s-eye view: Marginal additions are methyl isocyanate gas leaked out of a storage tank at the Bhopal plant and floated over a city Value for price paid: Quality is defined in terms of the utility Quality is important of 672,000. It was the worst industrial accident in history with over 200,000 people hurt and provided as Bird’s-eye businesses be lasting theinjuries. price paid. 15,000–20,000 suffering The pesticide factory simply lacked the quality and philosophical argue that but the can tranview to provide contents debate. Some say it is of little safety exist in similar pesticide plants in Germany and America, which include Bird’s-eye view: quite hard toprocesses define. Athat good scendent approach is “the fundamentally most important approach totowers thinkingrainabout down neutralizeservices: escaping gases. Support Quality is defined in terms of the support p related to TQM concepts, definition ofthatquality is:foam to ISO 9000 2015 Quality System quality—particularly in the quality of design of breakthrough products and services.” the liberalization the Indianiseconomy, the customer hasManagement gained in terms of better 535 “QualityWith is about meet- ofDefinition service purchased. examples from industry, quality of products and services offeredof byQuality both multinationals and domestic companies. ing the needs and expecThehas widened adjective qualThe competition in the market the choice for customers. Market dynamics have best practices, etc. 2. The Product-based Approach Psychological criteria: A way of defining quality that focuses o tationsalso of moved customers”. ity applies to model objects and marketsoffrom seller’s to a buyer’s market. Quality, •• To encourage development and application third aparty assessment for use in govern-therefore, has become critiwhat constitutes product or serviceand excellence. caland in view ofsociety. the stiff competition for Indian service providment, regulators, organizations, refers and to the theneed degree to manufacturers Quality is precise and measurable; it can be ranked on various attributes isand an inherers to gain a stronghold in the international arena. Thea common definitions of quality are summarized below: •• Toand promote quality competitiveness India’s enterprises especially through adoption which setMSMEs of inherent ent part of the product. In this regard, quality is “a precise measurable variable”ofwhich twenty-first century can be termed as the century of quality. Quality is a key driver to of and adherence to qualityThe management standards and quality tools. characteristics fulfills a set is a composite of all the attributes that describe the degree of excellence of a product. Conformance to requirements (Crosby, 1979) market share andThis quality will 1. have to be integratedcentre, into all organization. •• To promote the establishment of quality improvement and benchmarking asaspects a reposi-of a successful of requirements. approach is illustrated by a draft of the ISO 8402 standard which that “quality is the Efficient production of quality goods and services is aindustry challenge tory of best stated international/national practices and their dissemination among the in for all most businesses today. 2. Fitness for use (Juran, 1979) mistakea isstated also termed as an error. When found by the tester, it is termed as a defect. A the sectors.necessary toAfulfill degree to which a product possesses a specified set of attributes defect accepted by theinformation development is called a bug, and when the build does not meet 3. Continual improvement (Deming, 1982) •• To facilitate effective functioning of a national andteam enquiry services on standards purpose.” requirements, termed a failure. From the point of view of the producer, a defect is a and quality including anthe appeal mechanismittoisdeal with unresolved complaints. company finds a defect in one of their cars and makes M01_TOTAL-QUALITY-M03_SE_XXXX_CH01.indd 1 a product recall, customer reliability and therefore production will decrease because trust will be lost in to the car’s quality. Others practical utility. 11/10/2016 2:24:08 PM 4. As defined by the customers (Ford, 1984; 1990) Bird’s-eye view: 5. Loss to society (Taguchi, 1987) AnSigma object(Harry is any This is an approach to assure that the customer’s voice is incorporated during product 6. Six and Stewart—Motorola, 1988) Box 17.3 CII Institute of Quality entity that is either conand is reflected in consumer demand curves. While this approach has been practical Each chapterdesign contains 7. Zero defects (Crosby, 1979) M01_TOTAL-QUALITY-M03_SE_XXXX_CH01.indd 2 10/7/2016 4:51:49 PM ceivable or among perceivable CII Institute Quality isvalue the leading authority in quality enhancement organizations and the design of products based on incremental innovations, it is ofoflimited in designing several boxesinthat industries. Over the past century, CII has provided Indianand industries with the support, systems, and an inherent character8. Meeting and exceeding present and future requirements o products based on radical innovations. Products based on radical innovation enter a market tools to make a mark in the competitive world. It is realized that best way that to enhance istic isthe a feature existsan organihighlight innovative basis (Charantimath, 2006) that may not exist and where customers may not be able to articulate their needs. In the case 3. The User-based Approach Source: Adapted from http://www.qcin.org/about-qci.php accessed July 2016 zation’s competitiveness is through the quality route. in an object. practices from TQM started as the Total Management Division (TQMD) of CII in the mid-eighties has of the radical innovation, the transcendent approach may beWhat of more than justQuality philosophical now evolved as CII Institute of Quality. As a champion of the quality movement, CII IQ is powered interest. arena. GarvIn’s approaches to defInInG QualIty by the responsibility of enriching the lives of its members, improving their workplaces, and making the world, at a large, a better place by applying quality tools, techniques, and systems. Bird’s-eye view:CII IQ proGarvin toidentified five major approaches to defining qua vides the best of its kind training and consulting servicesDavid to organizations help improve their The quality of an performance and set a standard of excellence. as follows: Quality is defined as conformance to specifications; reduce costs by reducing the number object can be determined by CII IQ has tied up with several international organizations to bring their best practices to India. of deviations with a focus on engineering and manufacturing practices. W.improve Edwards comparing a setthem of win inherIt has helped several organizations their total QMS besides recognitions Approach 1. helping The Transcendent Deming criticizes this approach as “the absurdity ofsuch meeting specifications.” “Specifias the Deming Prize and the Japan Quality Medal. ent CII IQ opens a world ofagainst opportunities to characteristics improve the quality of workplace, communities, and lives by providing information, contacts, and learning and experience defined Quality is recognized through cations don’t tell you what you need…Just to meet specifications—what you think the a set of requirements. more. It realizes the importance of creating sustainable programs that are critical to an organizaGarvin“quality identifiedis synonymous with ‘innate excellence’ InDavid this view customer requires—no. That won’t keep you in business.” Taguchi argues that the mantion’s QMS. 4. The Manufacturing-based Approach five major approaches This to is the approach which aligns most clo sally recognizable.” ufacturing-based approach is fundamentally flawed. He says that simply meeting speciSource: Adapted from http://www.cii-iq.in/index.php/about-us accessed July 2016 defining quality. The five “What is the fine?” from Greater Hippias. This approach impl fications is not good enough. He developed the quadratic loss function, which showed approaches are: The called quality thatTranis universally applicable. This is the appro that losses increased exponentially as a parameter deviated from its target value. of the Iso 9000 standards scendent approach; The Bird’s-eye view: Others argue that conformance to specifications is d a eveloPment practical approach to defining Product- based approach; The ISO 9000 famquality, if and only if, the specifications are derived Quality from customer (usermanagementrequirements focuses on activities carried out by the organizations to fulfil customThe User- based approach; ily of international quality ers’ quality requirements applicable regulatory requirements, while aiming to enhance based approach). Philip Crosby goes so far as to say that, “we must defineand quality as ‘conmanagement standards The Manufacturing-based customer satisfaction and achieve continual improvement in performance. ISO 9000 series of formance to requirements’ if we are to manage it.” Instead of thinking of quality in terms and guidelines has earned approach and The valuestandards is the internationally recognized standard for Quality Management Systems (QMS). a global reputation as a of goodness or desirability (transcendent approach),It we are atQMS it asstandard a means M01_TOTAL-QUALITY-M03_SE_XXXX_CH01.indd 4 ISO based is the mostlooking widely used in theof world. 9001approach. provides a framework and set of basis for establishing effecmeeting requirements. Quality means conformance. No quality is non-conformance. principles that ensure a common-sense approach to the management of your organization to tive and efficient quality A01_TOTAL-QUALITY-M03_SE_XXXX_FM.indd 15 11/10/2016 4:59:05 PM consistently satisfy customers and other stakeholders. In simple terms, it provides the basis for management systems. These principles collectively form a basis for performance improvement and organizational excellence. These principles have been discussed in detail in Chapter 3. Any organization can benefit from implementing ISO 9001, as its requirements are underpinned by the following eight universal management principles: xvi •• Customer-focused organization •• Leadership •• Involvement of people •• Ensuring a process approach •• Systematic approach to management •• Factual approach to decision making •• Mutually beneficial supplier relations •• Continuous improvement Preface The discussion forum tests students’ understanding of key concepts and facilitates interaction and knowledge sharing. The adoption of a QMS should be a strategic decision of an organization. Large and even small companies have gained great benefits from using QMS by discovering cost and efficiency savings. DISCUSSION FORUM 1. What is ISO? 2. How many times were the standards revised? 3. Which is the latest version of ISO and what are the major changes it introduces? 4. What are the quality management principles on which the QMS standards are based? 5. What are the benefits of ISO certification? 6. Identify the organizations providing strategic direction to quality movement in India. Quality Concepts 25 Qmanufacturing, ualIty management systems : an IntroductIon • In quality costs are primarily product oriented; for services, however, they are generally labour dependent, with labour often accounting for up to 75 per cent of The adoption of a QMS should be a strategic decision of an organization. The QMS requirethe total costs. ments specified in this International Standard are complementary to requirements for Key terms enable readers to quickly go through the important concepts discussed in each chapter. Key Terms M17_TOTAL-QUALITY-M03_SE_XXXX_CH17.indd 537 Aesthetics 13 Appraisal Cost Assurance Big Q 15 Performance 13 13 Process Level 10 Conformance 13 Psychological Criteria Durability Reliability 13 14 10 Expected Quality 8 External Failure Cost SERVQUAL Tangibles Indifferent Quality Internal Failure Cost 18 13 4 13 The Manufacturing-based Approach 10 16 The Product-based Approach The User-based Approach 14 One-dimensional Quality Optimum Quality Cost The Value-based Approach 10 18 Total Quality Cost Curve Value for Price Paid 11 5 The Transcendent Approach 14 Total Quality Management 5 The Performer/Job Level/Task Design Level 14 New Quality Old Quality 14 13 Support Services 13 Hidden Quality Cost Little q Serviceability 16 4 13 Responsiveness Exciting Quality Features 10/7/2016 10:51:47 AM 13 Prevention Cost 15 14 Empathy 24 Perceived Quality 4 5 5 18 4 Organizational Level bases: 10 Bases for this type areZone of Indifference 19 • Unit/number the number of units manufactured or sold, the number of direct production hours or the number of employees. Indices formed thus are affected by inflation, which of course is a disadvantage. Number bases are reported in terms of unit ratio, which is the ratio of the cost of quality per unit produced (manufacturing) or provided (service). Case Study The summary recapitulates the main points discussed in the chapter. Unit Ratio = Total Quality Cost/Units Produced Quality SUMMARY is King “While a top manager should be the ideal customer, he should also be the greatest critic of his company’s has many different definitions, ranging from the conventional to those products. •If The the term CEOquality compromises, or is only looking at the margins, then even if he is successful, the that are strategic. Conventional definitions of quality usually describe a quality item as company’s success be short one thatwill wears well, islived.” well constructed and will last for a long time. However, managers —Ratan Tata, Chairman, competing in the fierce international market are increasingly concerned with the strategicTata Group definition of quality—meeting customer requirements. • David Garvin identified five major approaches to defining quality: The transcendent Company approach, the product-based approach, the user-based approach, the manufacturing- based approach and the value-based approach. Tata Motors, previously known as Tata Engineering and Locomotive Co Ltd (TELCO), • Quality of goods and services can provide an organization with competitive edge. The role is one of the largest companies in the Tata Group, and one of India’s largest business of quality needs no emphasis for a firm because it is the key to success in business to achieve customer satisfaction. Today “quality” is the watchword for the survival and growth of any organization in the global business environment. Quality increases profits in addition to enhancing the image of the company. • An organization that is committed to quality must examine quality at three levels: organizational level, process level and the performer/job level/task/design level. • Quality of design, quality M01_TOTAL-QUALITY-M03_SE_XXXX_CH01.indd 25 of conformance and quality of performance are required to produce goods and services of consistent quality and costs. • The five paradigms of quality are custom-craft paradigm, mass production paradigm, statistical quality control paradigm, total quality management paradigm and techno-craft paradigm • David Garvin identified eight dimensions of product quality—performance, features, reliability, conformance, durability, serviceability, aesthetics and perceived quality. SERVQUAL dimensions of service quality are reliability, assurance, tangibles, empathy and responsiveness • Small ‘q’—the symbol for a product focus on quality. Big Q—the symbol for product, process and customer focus. 10/25/2016 2:03:50 PM • Fitness for use is achieved through two components: product features and freedom from deficiencies. There are four categories of quality costs. The first two are prevention and appraisal costs, which are incurred by a company in attempting to improve quality. The last two costs are internal and external failure costs, which are the costs of quality failures that the company wishes to prevent. • The costs associated with poor quality are due to both sporadic and chronic quality problems. A sporadic problem is a sudden, adverse change in the status quo, which requires remedy through restoring the status quo. A chronic problem is a long-standing adverse situation, which requires remedy through changing the status quo. A01_TOTAL-QUALITY-M03_SE_XXXX_FM.indd 16 11/10/2016 4:59:14 PM M01_TOTAL-QUALITY-M03_SE_XXXX_CH01.indd 24 10/7/2016 4:51:58 PM 502 Total Quality Management True Friends 00 Value-added Services 00 Trust 00 Wallet Share 00 Value Discipline Model 00 Zero Defections 00 Preface xvii Case Study A case study at the end of each chapter correlates quality management theories with their actual applications in the industry. Customer Relationship Management at Bharti 200 Bharti Tele-ventures is one of India’s leading private sector telecom operators. Its cellular business, Airtel, is a leading mobile telephony brand. Like any telecom organization, Bharti considers information technology as a key business enabler. According to Amrita Gangotra, vice-president of Information Technology at Bharti, IT works as a support system as well as a key business driver. The company has a wide area network (WAN) in place with a mix of leased lines and E1 and E3 lines. The company extends different applications to its dealers and partners through its extranet. The company also has procured a range of high-end servers from Sun and HP. The company also has a storage area network (SAN) in place because its daily storage requirements are in tetrabytes. Total Quality Management The main data centre is located in Gurgaon, Haryana. Bharti has procured billing, fraud management, revenue assurance and data warehousing software. being their first programme to go from design to full-scale production in a fast and smooth for CRMfor this success has been the implementation of SPC,” Mario manner.The The Case major ingredient said. No blueprint exists for the successful implementation of SPC in a production system. During the initial stages of its operations, the company’s systems were run manually. Only However, the SPC techniques used on the FZU-48 programmed can facilitate a smooth tran40 per centtoof customer issues on were getting resolved. Thearecompany to equip itself sition from design full-scale production other programmes if they performeddecided as tools that would help in resolving 90 per cent of its customer issues. The company early aswith possible prior to production. decided to programme, opt for a CRM solution to manage customer expectations and provide them with On the FZU-48 potential problems were detected using machine/process capability studies, statistically quantified using descriptive statistics and probabilities and innovative products and services. statistically corrected with statistically designed experiments. After implementation, the corrections were statistically validated. The end result was a high-quality output. Oracle CRM Platform Source: Adapted from www.motorola.com, accessed March 2010. Bharti wanted to fulfill its vision of providing the same quality of services anywhere and at any time. The company was particular that its customers should get the same quality of ser- For Discussion 1. Whyvice was no SPCmatter introduced in the fuze initiator programme? which of FZO-48 its call centres he or she contacts. It evaluated many options before 2. Howchoosing did processitscapability studies help tool. the division? centralized CRM The factors considered were proper workflow automa3. Comment on the resultsofgiven in Exhibitsharing 6.1. tion, facilitation knowledge and integration with the billing system. After a thor- ough evaluation exercise, it decided to go ahead with the Oracle CRM platform. Exercises enhance problem-solving skills and facilitate the application of concepts. Exercises Rolling Out 28 1. The standard error of measurement of the mean of measurement of a certain electrical After theofcompany started its operations inADelhi, acquiredofmany circles characteristic a product is determined to be 8 units. sampleitconsisting 42 units of and sought new licensesisin other circles. The CRM tool was implemented it obtained the product taken under consideration. From this information, what isimmediately your estimate whenever of Total Quality theManagement true standard deviation of thethe quality characteristic? a new license. However, company had to put in place a phased migration strategy in the 2. A sampling plan may bewhich specified thisexisting way: subscriber base. The migration had to be done in such acquired circles, hadinan N = customer 200, n = 20, 1. not suffer. The migration was completed in a a manner that the existing basec =did 2. ABC reported the The following for afor one-month phased byCompany the first quarter of 2004. biggestcosts challenge Bharti wasperiod. to have a uniInterpret the manner results. fied process in place. Theyinalso 3. A sampling plan may be specified this faced way: the challenge of imparting training. The company was successfully able to overcome the technical difficulties that it faced during implementation. Sl No. Activity Amount (in Rupees) N = 500, n1 = 20, c1 = 1, n2 = 60, c2 = 4. The Bharti revolves around two aspects—operational CRM and anaInterpret the CRM results.strategy at 1. CRM Design reviews 60,000 lytical CRM. Operational revolves around improving the workflow of call centres and 4. For a sampling plan, N = 1,200,2.n = 64 and c = 1, determine the probability of acceptance Inspection and tests 40,000 of the following lots: 3. Excess inventory 30,000 (a) 0.5 per cent defective (b) 0.8 per cent defective 4. 5. In-house scrap and rework Customer returns 20,000 10,000 M15_TOTAL-QUALITY-M03_SE_XXXX_CH15.indd (c) 502 1 per cent defective 10/5/2016 11:21:55 AM (d) 2 per cent defective a. How much was spent on external failure costs? (e) 4 per cent defective b. How much was spent on internal failure costs? (f) 10 per cent defective c. How Also, draw an OC curve. much was spent on failure costs? d. How muchsampling was spent appraisal costs? 5. Draw an OC curve of a double plan on given that N = 1,000, n1 = 50, c1 = 1, n2 = 25, c2 = 2. e. How much was spent on preventive costs? 6. A manufacturer receives large batches of components daily and decides to institute an f. What were thepossible total quality of ABC for the month? acceptance sampling scheme. Three plans arecosts considered, eachCompany of which requires a sample of 30 components to be tested: Short-answer questions facilitate a review of the concepts discussed in each chapter. M06_TOTAL-QUALITY-M03_SE_XXXX_CH06.indd 200 Short-answer Questions 10/7/2016 10:01:44 AM 1. Define quality. 2. List David Garvin’s five approaches to defining quality. 3. Name the three levels of quality. 4. What are the different types of quality? 5. Mention the five paradigms of quality. 6. What are Garvin’s eight dimensions of product quality? 7. What are the SERVQUAL dimensions of service quality? 8. Differentiate between service quality and product quality. 9. Differentiate between old quality and new quality. 10. What are the four categories of cost of poor quality? Match the Following A01_TOTAL-QUALITY-M03_SE_XXXX_FM.indd 17 a. Appraisal Correcting or replacing products after shipment to the customer b. Prevention Correcting or replacing products that fail to conform to specifications 11/10/2016 4:59:20 PM Quality Gurus 59 Quality Concepts 29 Quality Concepts 29 Short-answer Questions xviii Preface Match the following enables students to match the right terms and facilitates conceptual clarity. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. Define the Deming cycle. Name the components of the “Juran quality trilogy.” What are the three steps to quality suggested by Feigenbaum? What are the four absolutes of quality management? What are the other names for fishbone diagram? Define Taguchi’s quality loss function. Define the term JIT. What is SMED? What is poka-yoke? Who is the founder of the Kaizen Institute? Match the Following a. Walter Shewart Theory of profound knowledge b. W. Edwards Deming Quality trilogy c. Joseph Juran Total quality control d. Armand Feigenbaum Gemba Kaizen e. Philip Crosby Poka-yoke f. Kaoru Ishikawa Design of experiments g. Genichi Taguchi Father of quality circles h. Shigeo Shingo Four absolutes of quality i. Masaaki Imai Grandfather of quality control Discussion Questions 1. c. 2. d. 3. Discussion questions test students’ learning of the subject and provide further opportunities for the application of concepts. Why is Walter Shewart often referred to as the “grandfather of quality control”? Internal failure All activities specifically designed to prevent defects Discuss Crosby’s assertion that “there is no such thing as a quality problem.” External failure checking, or auditing products assure conformance to Deming suggests thatMeasuring, 94 per cent of quality problems are thetoresponsibility of managequality standards ment. Review this statement. 4. Taguchi believes that quality is a societal rather than an organizational issue. Discuss whether this is a reasonable belief. c. Internal failure All activities specifically designed to prevent defects 5.Discussion Explain Juran’s ten steps to quality improvement. Questions d. External failure Measuring, checking, or auditing products to assure conformance to 6. Explain the key elements of Feigenbaum’s philosophy of quality control. quality standards 7. Why Why might is Kaoru Ishikawa known as the circles”? 1. a dictionary definition of“father qualityofbequality inadequate for a quality professional? 8. Which ExplainofShigeo Shingo’sdiscussed contribution to chapter moderndo manufacturing and give an the definitions in this you feel is the practices best? Why? example poka-yoke. 2. Which offor Garvin’s five approaches to defining quality makes the most sense to you and Discussion Questions 9. why? Discuss the concepts introduced by Masaaki Imai for quality improvement. 3. Discuss what the different categories of quality costs might mean to your college and 1. university. Why mightHow a dictionary definition of quality be inadequate for a quality professional? can they be measured? Which of the definitions discussed in this chapter do you feel is the best? Why? 4. Why are cost of quality programmes valuable to managers? 2. Which of Garvin’s five approaches to defining quality makes the most sense to you and 5. Explain why? the three levels of quality and the key issues that must be addressed at each level. 6. 3. 7. How canwhat quality profitability be correlated? Discuss theand different categories of quality costs might mean to your college and university. How can theyand be objective measured? What are the subjective dimensions of quality? M02_TOTAL-QUALITY-M03_SE_XXXX_CH02.indd 59 10/7/2016 12:09:05 PM 4. What Why are of quality programmes to managers? 8. arecost the determinants of service valuable quality? Why is it difficult to measure service qualWhat more critical in hospital service?at each level. 5. ity? Explain thedimension three levelsofofservice qualityquality and theiskey issues that must be addressed 6. How can quality and profitability be correlated? 7. What are the subjective and objective dimensions of quality? 8.Projects What are the determinants of service quality? Why is it difficult to measure service quality? What dimension of service quality is more critical in hospital service? Projects facilitate data collection and enable students to broaden their knowledge of the subject. 1. Visit a service organization and find out the costs associated with the poor quality. Prepare a two-page report. 2. Develop a portfolio of advertisements from newspapers and magazines and illustrate Projects how quality is used in promoting these products. Do the advertisements suggest different definitions of quality? 1. Visit a service organization and find out the costs associated with the poor quality. Prepare a two-page report. 2. Develop a portfolio of advertisements from newspapers and magazines and illustrate how quality is used in promoting these products. Do the advertisements suggest differEnd Notes ent definitions of quality? 1. David A. Garvin, Managing Quality (New York: The Free Press, 1988). 2. Debashis Sarkar, The Managers Handbook for Total Quality Management (Beacon Books, 1998). 3.End Alan P. Brache and Geary A. Rummler, “The Three Levels of Quality,” Quality Progress Notes (October 1988): 46–51. 1. David A. Garvin, Managing Quality (New York: The Free Press, 1988). 2. Debashis Sarkar, The Managers Handbook for Total Quality Management (Beacon Books, 1998). 3. Alan P. Brache and Geary A. Rummler, “The Three Levels of Quality,” Quality Progress (October 1988): 46–51. A01_TOTAL-QUALITY-M03_SE_XXXX_FM.indd 18 M01_TOTAL-QUALITY-M03_SE_XXXX_CH01.indd 29 10/7/2016 4:51:58 PM M01_TOTAL-QUALITY-M03_SE_XXXX_CH01.indd 29 10/7/2016 4:51:58 PM 11/10/2016 4:59:27 PM Preface xix  The Teaching and Learning Package The student and instructor support resources provided with this book make learning and teaching a pleasurable experience. They include: • An Instructors’ Resource Manual that provides an analysis of all the case studies and answers to all the chapter-ending exercises in the book. • PowerPoint lecture slides that outline the main theories discussed in the book and enable instructors to make effective presentations. The instructors’ manual and the PowerPoint slides are available at www.pearsoned.co.in/poornimamcharantimath.  Acknowledgements I thank all those who have helped, encouraged and supported me all through the project. I thank all the members of the Board of Management, Karnataka Law Society, Belgaum, and the Director and all the members of the staff at my institution, the Institute of Management Education and Research, ­Belgaum. The conducive working environment provided by them greatly facilitated my work on this book. My students at IMER have always been a source of motivation. I would like to thank all the authors quoted here whose research and ideas have enriched this book. I am indebted to many practising managers for their valuable comments. My husband Manoj N. Charantimath and my son Amit have been pillars of support and have been very accommodating of my odd routines. My father Late K. M. Veeresh, mother Ganga, sister Ujwala and brother Satish were a source of moral support. My special thanks to my uncle and aunt, Dr Muttu and Dr Jayashree Puranik, the United Kingdom, for their encouragement. My thanks are also due to my publisher Pearson Education, the editorial team and all the reviewers of the book for their constructive suggestions. I acknowledge the efforts of Pradeep Kumar Bhattacharjee and M. Balakrishnan who worked hard to give this book its present form. Readers may please mail their feedback and suggestions to [email protected]. Poornima M. Charantimath A01_TOTAL-QUALITY-M03_SE_XXXX_FM.indd 19 11/10/2016 4:59:27 PM Reviewers Total Quality Management has benefited from an extensive development process, which involved faculty reviewers providing feedback about the accuracy and relevance of the content as well as suggestions for its improvement. While we could not incorporate all suggestions from everyone, we do acknowledge that their feedback was invaluable in our attempt at creating the best possible total quality management textbook. We would like to thank the following people for their time and commitment: K. K. Ganguly KIIT School of Management Studies, Bhubaneswar S. N. Parasnis Maharashtra Institute of Technology, Pune Prashant Gupta Amity Global Business School, Ahmedabad Murthy Pasumarthy Aspen School of Business, Hyderabad Vivek Kumar FORE School of Managemen