TQM Unit 1 Lecture Notes PDF

RAGHU ENGINEERING COLLEGE Autonomous (Approved by AICTE, New Delhi, Accredited by NBA (CIV, ECE, MECH, CSE), NAAC with ‘A’ grade...

RAGHU ENGINEERING COLLEGE Autonomous (Approved by AICTE, New Delhi, Accredited by NBA (CIV, ECE, MECH, CSE), NAAC with ‘A’ grade & Permanently Affiliated to JNTU-GV Vizianagaram) Dakamarri, BheemunipatnamMandal, Visakhapatnam Dist. – 531 162 (A.P.) Ph: +91-8922-248001, 248002 Fax: + 91-8922-248011 e-mail: [email protected] website: www.raghuenggcollege.com Total Quality Management Lecture Notes UNIT I Syllabus INTRODUCTION Introduction - Need for quality - Evolution of quality - Definition of quality - Dimensions of manufacturing and service quality - Basic concepts of TQM - Definition of TQM – TQM Framework - Contributions of Deming, Juran and Crosby – Barriers to TQM. INTRODUCTION Liberalization and Globalization: With the opening up of the economy multinational companies, theworld over, are setting up organizations in India. Also, Indian Government has liberalized and many products that were previously manufactured by the public sector and government organizations are nowbeing manufactured by Private organizations. The opening up of the economy has brought to the advantage of the customers many benefits  Sellers market to Buyers market: Previously, Customers had to depend on only a few products. They are now able to choose whatever the product they want. So organizations have to be agile and introduce many variants of the same product and that too in a very short period of time.  Awareness: With the connectivity increasing, the world has become very small and even remote places are now connected through internet and mobile phones, not to mention the connectivity through road and rail.  Increased Competition: More and more organizations are setting up industries in India to produce products and services. Also, any product produced anywhere in the world can be sold in any part of the world. Indian companies have come under lot of pressure under the present circumstances because  Freedom to produce: Many products that were under the domain of the cottage industry are now being manufactured by multinational companies (ex: chips, soft drinks).  Organizational Systems and Culture: These multinational companies that enter the Indian  market bring with them proven systems through which they have a great advantage over many of the Indian organizations that still need to think in terms of progressive systems. In view of the above circumstances organizations in India need to look ahead to be competitive to surviveand succeed. One of the best ways of taking the first step forward is to  Improve productivity of all activities, inside the organization and in the delivery process i.e., they need to respond faster to the environmental requirement and produce products and services at continually reduced costs.  Secondly, organizations need to process information and products at a faster rate, For this to happen managers in such organizations need to be provided with updated, timely and strategic information  All the departments in the organization need to work in unison to serve the ultimate customer. Customer is the king in the present age and he will not pay for the producers’ inefficiency.  Product costs have to continually decrease. All these things should happen in a situation in which employee salary, interests on loans, insurance costs electricity charges, to name a few, keep on increasing as expenses to the organization. QUALITY Quality has been the most exploited word but at the same time most mis-understood word. Quality is an off shoot of the work we do. It is a bi-product of an act. It shows the level of commitment in doing our activity. Examples such as: High quality at low price, Quality Hawaii chappal, High class quality etc., are being mentioned. Definition: The Quality is defined in many ways: Quality is Excellence: When quality is defined as excellence, it loses its measurability. Each person understands to the level of his own excellence and involves in his work. It is often misunderstood that high cost is high quality. Judgmental in nature. Ex. (Rolex watches, BMW automobiles). Quality is Value: With this definition the performance and features or the usefulness of the products are compared to only the cost of price of the product. Many a times the utility/ possession value is more than the value of the product. Ex: the features of the product are compared to the cost of the product. Quality is Conformance to Requirements: This definition has a manufacturing orientation. It requires that the customer gives the specification and the products are manufactured to that requirement. Quality is degree to which the inherent capabilities of the product satisfy(implicit and explicit) Requirements (Customer driven). Need for Quality  Good quality of goods and services can provide an organization with competitive edge.  Good quality reduces costs due to product returns, rework and scrap.  Good quality increases productivity, profits and other measures of success such as brand image, product image and company goodwill.  Most importantly, good quality generates satisfied customers today and tomorrow.  Good quality creates an atmosphere for high employee morale, which improves productivity. Evolution of Quality Before the concepts and ideas of TQM were formalised, much work had taken place over the centuries to reach this stage. This section charts the evolution, from inspection through to the present day concepts of total quality. From inspection to total quality Inspection Inspection involves measuring, examining, and testing products, process and services against specified requirements to determine conformity. In the late Middle Ages, special measures were taken to inspect the work of apprentices and journeymen in order to guard the Guild against claims of makeshift or shoddywork. During the early years of manufacturing, inspection was used to decide whether a worker’s job or a product met the requirements; therefore, acceptable. It was not done in a systematic way, but worked well when the volume of production was reasonably low. However, as organisations became larger, the need for more effective operations became apparent. In 1911, Frederick W. Taylor helped to satisfy this need. He published ‘The Principles of Scientific Management’ which provided a framework for the effective use of people in industrial organisations. Oneof Taylor’s concepts was clearly defined tasks performed under standard conditions. Inspection was one of these tasks and  was intended to ensure that no faulty product left the factory or workshop;  focuses on the product and the detection of problems in the product;  involves testing every item to ensure that it complies with product specifications;  is carried out at the end of the production process; and relies on specially trained inspectors. Accompanying the creation of inspection functions, other problems arose:  More technical problems occurred, requiring specialised skills, often not possessed by production workers  The inspectors lacked training  Inspectors were ordered to accept defective goods, to increase output  Skilled workers were promoted into other roles, leaving less skilled workers to perform the operational jobs, such as manufacturing This movement led to the emergence of a separate inspection department. An important new idea thatemerged from this new department was defect prevention, which led to quality control. Quality Control and Statistical Theory Quality Control was introduced to detect and fix problems along the production line to prevent the production of faulty products. Statistical theory played an important role in this area. In the 1920s, Dr W. Shewhart developed the application of statistical methods to the management of quality. He made the first modern control chart and demonstrated that variation in the production process leads to variation in product. Therefore, eliminating variation in the process leads to a good standard of end products. Statistical Quality Control:  focuses on product and the detection and control of quality problems;  involves testing samples and statistically infers compliance of all products;  is carried out at stages through the production process; and  relies on trained production personnel and quality control professionals. Shewart’s work was later developed by Deming, Dodge and Roming. However, manufacturing companies did not fully utilise these techniques until the late 1940s. Quality in Japan In the 1940s, Japanese products were perceived as cheap, shoddy imitations. Japanese industrial leaders recognised this problem and aimed to produce innovative high quality products. They invited a few quality gurus, such as Deming, Juran, and Feigenbaum to learn how to achieve this aim. In the 1950s, quality control and management developed quickly and became a main theme of Japanese management. The idea of quality did not stop at the management level. Quality circles started in the early 60s. A quality circle is a volunteer group of workers who meet and discuss issues to improve any aspects of workplace, and make presentations to management with their ideas. A by-product of quality circles was employee motivation. Workers felt that they were involved and heard. Another by-product was the idea of improving not only quality of the products, but also every aspect of organisational issues. This probably was the start of the idea, total quality. Total Quality The term ‘total quality’ was used for the first time in a paper by Feigenbaum at the first international conference on quality control in Tokyo in 1969. The term referred to wider issues within an organisation. Ishikawa also discussed ‘total quality control’ in Japan, which is different from the western idea of total quality. According to his explanation, it means ‘company-wide quality control’ that involves all employees, from top management to the workers, in quality control. Total Quality Management: Historical Review (Evolution in short-chronological order )  In the middle ages the concept of quality in the individuals was instilled by long hours of on the job training. The manufacturer would act as the inspector. The concept of business was in the barter system. Even now we see such skilled craftsmen like carpenters, idol makers and others, who make their own product and inspect it.  In the early 20th century, the work of F.W.Taylor, known as the father of scientific management, led to a new philosophy of separating planning function from execution function. During this phase the total work was segmented into specific work tasks for focusing on increased efficiency. The quality assurance of the items/products produced fell into the hands of the inspectors. During manufacturing, defects were present but were removed by inspectors before passing it on to the next stage or to the customer. Eventually organizations formed separate quality departments to pass materials produced. This worked during that period because of lack of  skill and education of the workers. Later on it led to a lot of indifference to quality among production workers thinking that quality personnel were responsible for quality goods produced. o During this period Henry Ford had identified lot of best practices of Total Quality and put it in a book called “My Life and Work”, which people in Ford came to know later when they visited Japan to learn best practices. o During 1920s in the Bell Telephone Laboratories, a team led by Walter Shewart, developed the control chart, which became a popular means of identifying quality problems in production processes and ensuring consistency of output. o During the Second World War sampling tables (MIL STD) were developed for sampling inspection.  During the early 40s and 50s the shortage of civilian goods made production a top priority. Quality was not a priority of top managers and remained the domain of the specialist managers. Edward Deming learned statistical quality control from Shewart and propagated the same to Japanese along with Joseph Juran.  During late 1970s and 1980s US managers were making frequent trips to Japan to see the miracle in Japan on Quality issues.  During late 1980s automotive industry in US began to emphasize SPC. Suppliers and their suppliers were required to use these techniques. Genechi Taguchi introduced his concepts of parameter and tolerance design and brought a resurgence of design of experiments.  The 1990s ISO 9000 became the worldwide model for quality management system. Dimensions of Quality Manufacturing Quality Dimensions  Reliability  Aesthetics  Performance  Durability  Reputation  Features  Service  Response  Conformance  Performance: A product’s primary operating characteristics.  Automobile- Braking Distance, Acceleration, Steering, Handling, etc.  Mobile Phone: Clarity, Audibility, Ease of use, etc. Features: Additional provisions provided in the product  Automobile: Stereo systems, Antilock Brakes, Air conditioning  Mobile Phones: MP3, Email facility, Reliability: Probability of product surviving over a specified period of time under specified conditions.  Automobile: Able to start on cold days, Good mileage  Mobile Phones: Catches even feeble signals, Battery life is good Conformance: The degree to which physical and performance characteristics of a product match pre- established standards  Automobile: No sounds while driving as all components fit well with each other.  Mobile: Battery and additional cards fit well into the unit. Battery gets charged properly Durability: The amount of use one gets from a product before it physically deteriorates or until replacement is preferable.  Automobile: Corrosion resistance, Upholstery wears.  Mobile: Battery life, Sturdiness of buttons Seviceability: The speed, courtesy and competence of repair work.  Automobile: Ease with which the cables can be replaced.  Mobile: Service expenses Aesthetics: How a product looks, feels, tastes, smells and sounds  Automobile: Colour, ergonomic seats, panel design  Mobile: Sleekness, weight, Colour combination Reputation: The name the supplier has made over time  Automobile: Maruthi Suzuki service.  Mobile: Nokia’s reliability Response: Willingness to help customers and provide prompt service.  Automobile: Replacement of defective parts – TATA Indica, Honda  Mobile: Nokia battery replacement Service Quality Service can be defined as ‘any primary or complimentary activity that does not directly produce a physical product – that is, the non-goods part of the transaction between buyer (customer) and seller (provider). The service sector grew rapidly in the second half of the twentieth century. A service might be as simple as handling a complaint or as complex as getting a housing loan. The service sector began to recognise the importance of quality several years after manufacturing had done so. This lag can be attributed to the fact that service industry had not confronted the same aggressive foreign competition that manufacturing faced. Another factor is the high turnover rate in service industry jobs. Constantly changing personnel makes establishment of a continual improvement process more difficult. Service Quality Characteristics:  Intangibility: inability to assess the value gained from engaging in an activity using any tangible evidence  Perish-ability: capacity cannot be stored for sale in the future.  Inseparability: renders it impossible to divorce the supply or production of the service from its consumption.  Variability: Differences in service in terms of time and person. Dimensions of Service Quality: Five key dimensions of service quality contribute to customer perceptions:  Reliability: The ability to provide what was promised, dependably and accurately. Ex: providing error free invoices, making repairs correctly first time.  Assurance: The knowledge and courtesy of employees, and their ability to convey trust and confidence. Ex: ability to answer questions, having capability to do the necessary work, avoiding possible fraud with the system of operations.  Tangibles: The physical facilities of the equipment, and the appearance of personnel. Attractive front office, well dressed employees, well designed forms etc.  Empathy: The degree of caring and individual attention provided by the customers. Ex: willingness to schedule deliveries at the customer’s convenience, explaining technical jargon in a layman’s language.  Responsiveness: The willingness to help customers and provide prompt service. Ex: acting quickly to resolve problems, promptly crediting returned materials. Improving Service Quality Customer service is the set of activities an organization uses to win and retain customers’ satisfaction. It can be provided before, during, or after the sale of the product or exist on its own. Elements of customer service are: Organization: To ensure the same level of quality of service for all customers, organization must record and communicate to its employees the directions for all tasks. A service quality handbook has to be prepared. Communicating it to all employees would be through formal training, videos, personal coaching, or meetings. The organization shall take into consideration the following 1. Identify each market segment they are serving. 2. Write down the requirements. 3. Communicate the requirements 4. Organise processes 5. Organise physical spaces. Customer Care: The organization should revolve around the customer, because customers are the key to the business. Theissues under customer care are: 1. Meet the customers’ expectations 2. Get the customer’s point of view. 3. Deliver what is promised 4. Make the customer feel valued. 5. Respond to all complaints 6. Over-respond to the customer 7. Provide a clean and comfortable customer reception area. Communication: The organization should be in communication with its customers matching with its level of service quality. A customer will be dissatisfied if what is advertised and what is delivered are not the same. Under communication organizations need to 1. Optimize the trade-off between time and personal attention. 2. Minimize the number of contact points 3. Provide pleasant, knowledgeable, and enthusiastic employees. 4. Write documents in customer-friendly language. Front Line People: Customers are the most valuable assets and should not be left to employees who have not been trained tohandle people and complaints. To attend to customers and their requirements, organizations need to 1. Hire people who like people 2. Challenge them to develop better methods 3. Give them the authority to solve the problems. 4. Serve them as internal customers 5. Be sure they are adequately trained. 6. Recognise and reward performance Quality Planning Before offering any product/service to the market, organizations need to plan upfront, about the level ofquality, the features and the services they are going to offer in the market. They need to decide the customer segment they are going to serve with the products which they are making. The steps for quality planning are as follows:  Identify who are the customers: If a company is making a car, it has to decide which segment of the society it is going to serve. Appropriately requirements have to be met.  Determine the customer needs: An in-depth survey and detailed analysis has to be done to know the requirements of the customer. Customers may ask for an automobile but their actual need to be collected to know whether they are giving value for aesthetics or reliability.  Translate the needs into language: Once requirements are noted, then the data has to be analyzed to know the pattern or trend. Accordingly, the features and performance of the product have to be defined.  Develop a product to meet the needs: Once requirements have been translated to needs and parameters, a prototype need to be produced.  Optimize the product so as to meet the company’s as well as the customers’ needs: Matching the customers’ requirement with the organizations capability to produce, it could be decided what features need to be added to the product and how the same could be manufactured. This is done in an organized process by making use of advanced tools and techniques, such as Quality Function Deployment and Failure Mode Effect Analysis.  Develop the Process to produce the product: At this stage the knowledge and record in the earlier step is transferred to technical requirements and the machinery and processes need to produce are added to the organization.  Optimize the Process: The process has to be fine tuned to optimize the working condition in order to minimize wastage and delay.  Prove the processes can a make the product under optimal conditions: Produce products in the setup to ensure that the setting of the process results in cost effective products and improves efficiency of operation. Total Quality Management TQM is composed of three paradigms:  Total: Organization wide  Quality: With its usual Definitions, with all its complexities (External Definition)  Management: The system of managing with steps like Plan, Organize, Control, Lead, Staff, etc. Definition: As defined by the International Organization for Standardization (ISO): "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." Basic Concepts: TQM requires six basic concepts 1. A committed and involved management: TQM is a continual long term activity that must be imbibed in the culture of the organization. Everything begins with the long-term-top-to-bottom-  organization support. Management must participate in the quality program, establish a council to develop clear vision, set goals and direct the programs. 2. An unwavering focus on the customer: Customers are the very purpose of any organization. Key to an effective TQM is orienting all activities towards the need of the customer, both internally and externally. 3. Effective involvement and achievement of the entire work force: Implementing TQM is everyone’s responsibility. Employees are the future of any organization. All personnel must be trained in TQM, its tools. They must be empowered to perform processes in an optimal manner. 4. Continuous improvement of the business and production processes: All employees must continually strive to improve all business and production systems. 5. Treating Suppliers as Partners: 40 to 60 % of the product cost is outsourced. So all supplier organizations have to be treated as extension of one’s organisations. 6. Establish Performance measures: Measure and prosper. Measures should be available to note downtimes, nonconformities and satisfaction of customers, absenteeism etc. Principles of Total Quality Management: The eight principles are: 1. Customer-Focused Organisation System Approach to Management 2. Leadership 6. Continual Improvement 3. Involvement of People 7. Factual Approach to Decision Making and 4. Process Approach 8. Mutually Beneficial Supplier Relationships. 5. Principle 1 - Customer-Focused Organisation "Organisations depend on their customers and therefore should understand current and future needs of the customer, meet customer requirements and strive to exceed customer expectations". Steps in application of this principle are: 1. Understand customer needs and expectations for products, delivery, price, dependability, etc. 2. Ensure a balanced approach among customers and other stake holders (owners, people, suppliers, local communities and society at large) needs and expectations. 3. Communicate these needs and expectations throughout the organisation. 4. Measure customer satisfaction & act on results, and 5. Manage customer relationships. Principle 2 - Leadership "Leaders establish unity of purpose and direction of the organisation. They should create and maintain the internal environment in which people can become fully involved in achieving the organisation's objectives." Steps in application of this principle are: 1. Be proactive and lead by example. 2. Understand and respond to changes in the external environment. 3. Consider the needs of all stake holders including customers, owners, people, suppliers, local communities and society at large. 4. Establish a clear vision of the organization’s future. 5. Establish shared values and ethical role models at all levels of the organisation. 6. Build trust and eliminate fear. 7. Provide people with the required resources and freedom to act with responsibility and accountability. 8. Inspire, encourage and recognise people's contributions. 9. Promote open and honest communication. 10. Educate, train and coach people. 11. Set challenging goals and targets, and 12. Implement a strategy to achieve these goals and targets. Principle 3 - Involvement of People "People at all levels are the essence of an organisation and their full involvement enables their abilities to be used for the organisation's benefit". Steps in application of this principle are: 1. Accept ownership and responsibility to solve problems. 2. Actively seek opportunities to make improvements, and enhance competencies, knowledge and experience.  3. Freely share knowledge & experience in teams. 4. Focus on the creation of value for customers. 5. Be innovative in furthering the organisation’s objectives. 6. Improve the way of representing the organisation to customers, local communities and society at large. 7. Help people derive satisfaction from their work, and 8. Make people enthusiastic and proud to be part of the organisation. Principle 4 - Process Approach "A desired result is achieved more efficiently when related resources and activities are managed as a process." Steps in application of this principle are: 1. Define the process to achieve the desired result. 2. Identify and measure the inputs and outputs of the process. 3. Identify the interfaces of the process with the functions of the organisation. 4. Evaluate possible risks, consequences and impacts of processes on customers, suppliers and other stake holders of the process. 5. Establish clear responsibility, authority, and accountability for managing the process. 6. Identify internal and external customers, suppliers and other stake holders of the process, and 7. When designing processes, consider process steps, activities, flows, control measures, training needs, equipment, methods, information, materials and other resources to achieve the desired result. Principle 5 - System Approach to Management "Identifying, understanding and managing a system of interrelated processes for a given objectiveimprove the organisation's effectiveness and efficiency." Steps in application of this principle are: 1. Define the system by identifying or developing the processes that affect a given objective. 2. Structure the system to achieve the objective in the most efficient way. 3. Understand the interdependencies among the processes of the system. 4. Continually improve the system through measurement and evaluation, and 5. Estimate the resource requirements and establish resource constraints prior to action. Principle 6 - Continual Improvement "Continual improvement should be a permanent objective of the organisation." Steps in application of this principle are: 1. Make continual improvement of products, processes and systems an objective for every individual in the organization. 2. Apply the basic improvement concepts of incremental improvement and breakthrough improvement. 3. Use periodic assessments against established criteria of excellence to identify areas for potential improvement.  4. Continually improve the efficiency and effectiveness of all processes. 5. Promote prevention based activities. 6. Provide every member of the organisation with appropriate education and training, on the methods and tools of continual improvement such as the Plan-Do-Check-Act cycle, problem solving, process re-engineering, and process innovation. 7. Establish measures and goals to guide and track improvements, and 8. Recognise improvements. Principle 7 - Factual Approach to Decision Making "Effective decisions are based on the analysis of data and information."Steps in application of this principle are: 1. Take measurements and collect data and information relevant to the objective. 2. Ensure that the data and information are sufficiently accurate, reliable and accessible. 3. Analyse the data and information using valid methods. 4. Understand the value of appropriate statistical techniques, and 5. Make decisions and take action based on the results of logical analysis balanced with experience and intuition. Principle 8 - Mutually Beneficial Supplier Relationships "An organisation and its suppliers are interdependent, and a mutually beneficial relationship enhances the ability of both to create value." Steps in application of this principle are: 1. Identify and select key suppliers. 2. Establish supplier relationships that balance short-term gains with long-term considerations for the organisation and society at large. 3. Create clear and open communications. 4. Initiate joint development and improvement of products and processes. 5. Jointly establish a clear understanding of customers' needs. 6. Share information and future plans, and 7. Recognise supplier improvements and achievements  TQM FRAMEWORK Benchmarking Shewart Information Technology Deming Quality Management system Juran Crosby Environmental management system Quality Function Deployment Gurus Tools & Techniques Quality by Design Failure mode & Effect Analysis Product and Service liability Principles & Practices Product & Customer Service People & Relationship Leadership, Customer Approach: sat, Employee Involvement, supplier Continuous process improvement partnership, etc TQM has evolved over a period of time through practice and the contribution of principles by various gurus. The whole system is focused towards the customer, who is the basic purpose for which the organization exists. The products and services are realized by the combination of various principles and practices based on people and relationships, and Tools and Techniques, as shown above. The approach to product realization is by continuously identifying activities and process for incremental and breakthrough improvement so as to provide the best to the customer. This happens when at every stage all activities and process have progressive performance measures which channelize the performance in the direction of the set goal. Benefits of TQM:  Improved quality  Employee satisfaction.  Employee participation  Increased productivity  Team work  Communication]  Working relationship  Profitability  Customer satisfaction  Increased market share  Implementation of TQM It is very important to implement TQM in an organized manner. Even a good system does not work well nor is accepted by the employees if badly implemented. Leadership is essential in every stage of implementation. The following need to be followed for effective implementation of TQM in organizations: 1. Sr. Management needs to be educated in the TQM concept. In addition to formal education, managers need to visit other organizations where TQM has been implemented. 2. Timing of the implementation is important. Implementation should be postponed when any of the following are happening in the organization a. Reorganization of roles and responsibilities b. Change in Senior Management c. Interpersonal conflicts d. A crisis in the organization e. A time consuming project is underway 3. A quality council has to be formed to take up the implementation activities of TQM. The quality council is responsible for developing core values, a vision, a mission and a quality policy statement with input all concerned. 4. Middle managers should be actively involved in the implementation of TQM only then the commitment percolates to the other levels of the organization. 5. If there is a union, then there should be a clear discussion regarding the purpose, approach and end result of the effort being taken to implement TQM. Their concurrence and cooperation is necessary for a successful implementation. 6. It is important, at this stage, to communicate to everyone in the organization about the implementation of TQM. 7. Everyone needs to be trained in the appropriate tools and techniques to learn and apply the same. 8. A survey has to be conducted to assess the level of understanding and commitment of the customers, suppliers and employees. This helps in benchmarking the activities for improvement. Edwards Deming W. Edwards Deming holds a Ph.D. in physics, but is a statistician by experience. He is an educator, lecturer, author, and an internationally renowned consultant, best known for leading Japanese businesses on the course that has made them leaders in quality and productivity throughout the world. His contributions for Deming’s 14 points, Deming’s Triangle, Deming’s Theory of Variance and Deming’s Wheel. Deming’s 14 points:  Point 1: Create constancy of purpose toward improvement of the product and service so as to become competitive, stay in business and provide jobs.  Point 2: Adopt the new philosophy. We are in a new economic age. We no longer need live with commonly accepted levels of delay, mistake, defective material and defective workmanship.  Point 3: Cease dependence on mass inspection; require, instead, statistical evidence that quality  is built in.  Point 4: Improve the quality of incoming materials. End the practice of awarding business on the basis of a price alone. Instead, depend on meaningful measures of quality, along with price.  Point 5: Find the problems; constantly improve the system of production and service. There should be continual reduction of waste and continual improvement of quality in every activity so as to yield a continual rise in productivity and a decrease in costs.  Point 6: Institute modern methods of training and education for all. Modern methods of on-the- job training use control charts to determine whether a worker has been properly trained and are able to perform the job correctly. Statistical methods must be used to discover when training is complete.  Point 7: Institute modern methods of supervision. The emphasis of production supervisors must be to help people to do a better job. Improvement of quality will automatically improve productivity. Management must prepare to take immediate action on response from supervisors concerning problems such as inherited defects, lack of maintenance of machines, poor tools or fuzzy operational definitions.  Point 8: Fear is a barrier to improvement so drive out fear by encouraging effective two-way communication and other mechanisms that will enable everybody to be part of change, and to belong to it.  Fear can often be found at all levels in an organization: fear of change, fear of the fact that it may be necessary to learn a better way of working and fear that their positions might be usurped frequently affect middle and higher management, whilst on the shop-floor, workers can also fear the effects of change on their jobs.  Point 9: Break down barriers between departments and staff areas. People in different areas such as research, design, sales, administration and production must work in teams to tackle problems that may be encountered with products or service.  Point 10: Eliminate the use of slogans, posters and exhortations for the workforce, demanding zero defects and new levels of productivity without providing methods. Such exhortations only create adversarial relationships.  Point 11: Eliminate work standards that prescribe numerical quotas for the workforce and numerical goals for people in management. Substitute aids and helpful leadership.  Point 12: Remove the barriers that rob hourly workers, and people in management, of their right to pride of workmanship. This implies, abolition of the annual merit rating (appraisal of performance) and of management by objectives.  Point 13: Institute a vigorous program of education, and encourage self-improvement for everyone. What an organization needs is not just good people; it needs people that are improving with education.  Point 14: Top management's permanent commitment to ever-improving quality and productivity must be clearly defined and a management structure created that will continuously take action to follow the preceding 13 points.  Deming’s Triangle 1,2,14 Management Commitment Inter-relationships Statistical Methodology 4,7,8,9,10,11,12 3, 5,6,13 Deming’s Theory of Variance: As per Deming, all variance can be categorized into controlled variance and uncontrolled variance. A controlled variance is a variation from standard process that a worker can control.An uncontrolled variance is a variation from the standard process due to the impact of some factor outside the control of the employee.Variances can be corrected by workers or managers by either changing its common causes or removing the special causes. Common causes are systematic issues such as improper product design, equipment malfunctioning, maintenance of equipment, inaccurate routing or improper selection of materials. Specialcauses include lack of skill, worker negligence or incoming bad quality material. Common Cause Special Cause Controlled Management Employee Variance Uncontrolled Management Management variance Deming Wheel or P-D-C-A Cycle Never Ending Improvement P D A C  Joseph Moses Juran Joseph Moses Juran (December 24, 1904 – February 28, 2008) was a 20th century management consultant who is principally remembered as an evangelist for quality and quality management, writing several influential books on those subjects. The relevant things that Dr. Juran did was conceptualized the Pareto Principal to apply it in quality management. He also spent some years with the reengineering concepts. During this time he observed that an organization could work better if they standardized the process and give more importance to the quality. He also developed the "Juran's trilogy," an approach to cross- functional management that is composed of three managerial processes: quality planning, quality control and quality improvement. Dr. Juran’s trilogy defined the three management processes required by every organization to improve: Quality control, quality improvement and quality planning. This Trilogy shows how an organization can improve every aspect by better understanding of the relationship between processes that plan, control and improve quality as well as business results. It was created in the 1950’s and defines managing for quality as three basic quality-oriented, interrelated processes: Quality Planning --- To determine customer needs and develop processes and products required to meet and exceed those of the customer needs. The processes are called Design for Six Sigma or Concurrent Engineering. This can be particularly challenging for a planning team, because customers are not always consistent with what they say they want. The challenge for quality planning is to identify the most important needs from all the needs expressed by the customer.  Identify who are the customers.  Determine the needs of those customers.  Translate those needs into our language.  Develop a product that can respond to those needs.  Optimize the product features so as to meet our needs and customer needs. Quality Control --- The purposes of quality control is to ensure the process is running in optimal effectiveness, or to ensure that any level of chronic waste inherent in the process does not get worst. Chronic waste, which is a cost of poor quality that can exist in any process, may exist due to various factors including deficiencies in the original planning. It could cost a lot of money to the company, from rework time to scrap product to overdue receivables. If the waste does get worst (sporadic spike), a corrective action team is brought in to determine the cause or causes of this abnormal variation. Once the cause or causes had been determined and corrected, the process again falls into the zone defined by the “quality control” limits.  Prove that the process can produce the product under operating conditions with minimal inspection. Transfer the process to Operations. Quality Improvement --- Eliminate waste, defects and rework that improves processes and reduces the cost of poor quality. The processes have to be constantly challenged and continuously improved. Such an improvement does not happen of its own accord. It results from purposeful Quality Improvement or “Breakthrough.”  Develop a process which is able to produce the product.  Optimize the process. Examples of use and where it is used One example of Juran quality program was used in patient care program. The Juran center gathered several health care executives from several regions of Minnesota in order to improve several aspects like health care cost, patients safety and worker shortages. The Juran center launched a research project called Leading to Perfect Patient Care or LPPC, to test and implement a plan to eliminate medical errors. This was made for a 90 day period of time, in some important clinics and hospitals. The results expected with this program were an improvement in the safety and other organizational outcomes. The Dr. Juran quality program is also used in benchmarking, change management, design for six sigma, lean techniques, performance improvement, quality management and six sigma deployments. Philip B. Crosby Philip B. Crosby is an internationally known quality expert.He is best known for popularizing the "Zero Defects" concept that originated in the United States at the Martin Marietta Corporation where Crosby worked during the 1960s. The foundation of Crosby's approach is prevention, His approach to quality is best described by the following concepts: (1) "Do It Right the First Time"; (2) "Zero Defetss" and "Zero Defects Day"; (3) the "Four Absolutes of Quality"; (4) the "Prevention Process"; (5) the "Quality Vaccine"; and (6)the Six C's. Four absolutes of quality 1. The definition of quality is conformance to requirements (requirements meaning both the product and the customer's requirements) 2. The system of quality is prevention 3. The performance standard is zero defects (relative to requirements) 4. The measurement of quality is the price of nonconformance Do it Right Firs Time Crosby's approach focuses on doing things right the first time and every time. There is no place in his philosophy for differing levels of quality or categories of quality (e.g., high/low, good/poor). He believes there should be no reason for planning and investing in strategies that are designed in case something does not conform to requirements and goes wrong Zero Defects and Zero Defects Day Ile ultimate goal of his quality improvement process is "Zero Defects" or "defect-free" products and services. Contrary to what is generally believed, "Zero Defects" is not just a motivational slogan, but an attitude and commitment to prevention. "Zero Defects"does not mean that the product has to be perfect. It does mean that every individual in the organization is committed to meet the requirement the first time, every time, and that not meeting the requirements is not acceptable. His approach provides for the establishment of a “Zero Defects Day, “ a day that provides a forum for management to reaffirm its commitment to quality and allows employees to make the same commitment. All the actions necessary to run the organization, produce a product and a service, and deal with customers must be met and agreed. The system that produces quality is prevention (i.e., eliminating errors before they occur). To Crosby, training, discipline, example, and leadership produce prevention. Management must consciously commit themselves to prevention oriented environment. The attitude of ‘close enough’ is not tolerated in Crosby’s approach. Errors are too costly to ignore. Leaders must help others in their pursuit of conforming to requirements by allocating resources for training, providing time, tools etc to employees. Nonconformance is a management tools for diagnosing an organization’s effectiveness and efficiency. Crosby’s fourteen steps 1. Management Commitment: the need for quality improvement must be recognised and adopted by management, with an emphasis on the need for defect prevention. Quality improvement is equated with profit improvement. A quality policy is needed which states that '… each individual is expected to perform exactly  like the requirement or cause the requirement to be officially changed to what we and the customer really need.' 2. Quality Improvement Team: representatives from each department or function should be brought together to form a quality improvement team. These should be people who have sufficient authority to commit the area they represent to action. 3. Quality Measurement: the status of quality should be determined throughout the company. This means establishing quality measures for each area of activity that are recorded to show where improvement is possible, and where corrective action is necessary. Crosby advocates delegation of this task to the people who actually do the job, so setting the stage for defect prevention on the job, where it really counts. 4. Cost of Quality Evaluation: the cost of quality is not an absolute performance measurement, but an indication of where the action necessary to correct a defect will result in greater profitability. 5. Quality Awareness: this involves, through training and the provision of visible evidence of the concern for quality improvement, making employees aware of the cost to the company of defects. Crosby stresses that this sharing process is a - or even - the - key step in his view of quality. 6. Corrective Action: discussion about problems will bring solutions to light and also raise other elements for improvement. People need to see that problems are being resolved on a regular basis. Corrective action should then become a habit. 7. Establish an Ad-hoc Committee for the Zero Defects Programme: Zero Defects is not a motivation programme - its purpose is to communicate and instil the notion that everyone should do things right first time. 8. Supervisor Training: all managers should undergo formal training on the 14 steps before they are implemented. A manager should understand each of the 14 steps well enough to be able to explain them to his or her people. 9. Zero Defects Day: it is important that the commitment to Zero Defects as the performance standard of the company makes an impact, and that everyone gets the same message in the same way. Zero Defects Day, when supervisors explain the programme to their people, should make a lasting impression as a 'new attitude' day. 10. Goal Setting: each supervisor gets his or her people to establish specific, measurable goals to strive for. Usually, these comprise 30-, 60-, and 90-day goals. 11. Error Cause Removal: employees are asked to describe, on a simple, one-page form, any problems that prevent them from carrying out error-free work. Problems should be acknowledged within twenty-four hours by the function or unit to which the problem is addressed. This constitutes a key step in building up trust, as people will begin to grow more confident that their problems will be addressed and dealt with. 12. Recognition: it is important to recognise those who meet their goals or perform outstanding acts with a prize or award, although this should not be in financial form. The act of recognition is what is important. 13. Quality Councils: the quality professionals and team-leaders should meet regularly to discuss improvements and upgrades to the quality programme. 14. Do It Over Again: during the course of a typical programme, lasting from 12 to18 months, turnover and change will dissipate much of the educational process. It is important to set up a new team of representatives and begin the programme over again, starting with Zero Defects day. This 'starting over again' helps quality to become ingrained in the organization. Prevention Process Crosby’s approach addresses prevention rather than inspection and correction of errors. He says that prevention involves thinking, planning and analyzing processes to anticipate where errors could occur, and then taking action to keep them from occurring. Quality Vaccine Crosby sees problems as ‘bacteria of nonconformance’ that must be ‘vaccinated’ with ‘antibodies’ to prevent problems. He has formulated a ‘quality vaccine’ that consists of three distinct management actions- determination, education and implementation.  Determination surfaces when management sees the need to \change and recognizes that change requires management action,  Education is the process of providing all employees with the common language of quality, helping them to understand what their role is in the quality improvement process, as well as helping them to develop a knowledge base for preventing problems.  Implementation consist of resources, and the support of an environment consistent with a quality improvement philosophy. Six C’s To Crosby, education is a multi-stage process that every organization must go through, a process he calls the “Six C’s”. 1. Comprehension: Addresses the importance of understanding what is meant by quality. It must being at the top and eventually include all employees. 2. Commitment: Also begins at the top and represents the stage when managers establish a quality policy. 3. Competence: Developing an education and training plan during this stage is critical to implementing the quality improvement process in a methodical way. 4. Communication: All efforts must be documented and success stories published so that complete understanding of quality of all people in the corporate culture is achieved 5. Correction: Focuses on prevention and performance 6. Continuance: Emphasizes that the process must become a way of life in the organization.  Obstacles to Implementation of TQM  Lack of Management Commitment: Management should commit their time and organizational resources. The purpose must be clearly and continuously communicated to all personnel. Management should consistently apply the principles of TQM.  Inability to Change Organizational Culture: Change in an organizational set up takes lot of time and Management must understand and utilize the basic concepts of change: o People change when they want to and to meet their own needs. o People need to know the reason to change o To change trust has to be built instead of fear.  Improper Planning: All the functions and departments of the organization should involve in planning and implementation of the system. Customer satisfaction should be the goal rather than financial or sales goals.  Lack of Continuous Training and Education: It is an ongoing process for everyone in the organization. Needs must be determined and a plan developed to achieve those needs.  Incompatible organizational structure and isolated individuals and departments: The departments have to be restructured to make the organization more responsive. Differences between departments will make the implementation more difficult.  Ineffective measurement techniques and lack of access to data and results: Whatever is being produced should be checked for the intended purpose of use. This will ensure that we are in the right direction.  Paying adequate attention to internal and external customers: Organizations need to understand the changing needs and expectations of their customers. Effective feedback mechanisms should be devised to convert the needs/feedback of both internal and external customers into tangible product features and actions.  Inadequate use of empowerment and teamwork: Progressive organizations depend on interdisciplinary teams to implement actions and the recommendation of these teams should be followed. Individuals should be empowered to take decisions appropriate to their levels. Failure to continually improve: Products, Processes and services should be continually improved so thatorganizations stay ahead of competition. Even if people are in the right track they get run over if they are slow.