T QM - UNIT 1

 What is quality?
 What does quality mean to you? What might
it mean to others?
 How do you describe quality to others? How
do you know quality
 When you see it? What are quality’s
component elements?
 Quality means “features of products which meet
customer needs and thereby provide customer
satisfaction.”
 Quality improvement related to features usually costs
more.
 Quality also means “freedom from deficiencies.”
These deficiencies are errors that require rework
(doing something over again) or result in failures
after a product has been delivered to a customer.
Such failures may result in claims, customer
dissatisfaction, or dire consequences to the user.
 Quality improvement related to deficiencies usually
costs less.
 Juran’s view considers products, defects, and
customers.
RELATIVE IMPORTANCE OF SERVICE QUALITY DIMENSIONS
Quality costs are the costs associated
with preventing, finding, and correcting
defective work.
These costs are huge, running at 20% - 40% of
sales. Many of these costs can be
significantly reduced or completely avoided.
One of the key functions of a Quality
Engineer is the reduction of the total cost of
quality associated with a product.
 Prevention Costs: Costs of activities that are specifically designed to prevent
poor quality. Examples of “poor quality” include coding errors, design errors,
mistakes in the user manuals, as well as badly documented or unmaintainably
complex code.
 Appraisal Costs: Costs of activities designed to find quality problems, such as
code inspections and any type of testing.
 Design reviews are part prevention and part appraisal. To the degree that you’re
looking for errors in the proposed design itself when you do the review, you’re
doing an appraisal. To the degree that you are looking for ways to strengthen the
design, you are doing prevention.
 Failure Costs: Costs that result from poor quality, such as the cost of fixing
bugs and the cost of dealing with customer complaints.
 Internal Failure Costs: Failure costs that arise before your company supplies
its product to the customer. These costs go beyond the obvious costs of finding
and fixing bugs. Many of the internal failure costs are borne by groups outside of
Product Development.
 External Failure Costs: Failure costs that arise after your company supplies
the product to the customer, such as customer service costs, or the cost of
patching a released product and distributing the patch.
 Total Cost of Quality: The sum of all the costs (Prevention + Appraisal +
Internal Failure + External Failure).
Examples
of Quality
Costs
Associated
with
Software
Products

Prevention
Examples
of Quality
Costs
Associated
with
Software
Products

Appraisal
Examples
of Quality
Costs
Associated
with
Software
Products

Internal Failure
Examples
of Quality
Costs
Associated
with
Software
Products

External Failure
These are the types of These are the types of
costs absorbed by the
costs absorbed by the customer who buys a
seller that releases a defective product.
defective product • Wasted time
• Lost data
• Technical support calls • Lost business
• Preparation of support • Embarrassment
answer books • Frustrated employees quit
• Refunds • Failure of demos to customers
and other tasks that could
• Replacement with updated only be done once
product • Cost of replacing product
• PR work to soften drafts of • Cost of reconfiguring the
harsh reviews system
• Cost of recovery software
• Lost customer goodwill
• Cost of tech support
• Costs imposed by law • Injury / death

Seller: external failure costs Customer: failure costs

Everyone should be involved

customers should be provided with an uniform

quality product that meets their expectations

the way Total Quality is conducted

1. A committed and involved management to
provide long term top-to bottom
organizational support
2. An unwavering focus on the customer ,
both internally and externally
3. Effective involvement and utilization of the
entire workforce
4. Continuous improvement of the business
and production process
5. Treating Suppliers As Partners
6. Establish performance measures for the
processes
 In the 1920’s statistical theory began to be
applied effectively to quality control, and in
1924 Shewhart made the first sketch of a
modern control chart. His work was later
developed by Deming and the early work of
Shewhart, Deming, Dodge and Romig
constitutes much of what today comprises
the theory of statistical process control
(SPC). However, there was little use of these
techniques in manufacturing companies until
the late 1940’s.
 At that time, Japan’s industrial system was
virtually destroyed, and it had a reputation for
cheap imitation products and an illiterate
workforce.
 The Japanese recognised these problems and set
about solving them with the help of some
notable quality gurus – Juran, Deming and
Feigenbaum.
TQM Leaders
 W. E. Deming
 J. M. Juran
 K. Ishikawa
 A. V. Feigenbaum
 P. B. Crosby
 Central belief:
 94% of problems due to management
 6% ascribed to workers
 Results of Total Quality:
- Higher productivity
- Lower costs
- Increased market share
- Long-term stability
1. Constancy of purpose 8. Drive out fear
2. The new philosophy 9. Break down barriers
3. Cease mass inspection 10. Eliminate exhortations
4. End “lowest price” 11. Eliminate targets
purchasing 12. Permit pride of
5. Constantly improve workmanship
systems 13. Encourage education
6. Train everyone 14. Top management’s
7. Institute leadership commitment
 Management is responsible for quality failure and
quality improvement
 Philosophical trilogy: quality planning,quality
control and quality improvement
 Introduces the term “internal customers”
 7-Step program:
1. Establish quality policies and guides
2. Establish quality goals
3. Design quality plans to reach those goals
4. Assign responsibility for the plans
5. Provide necessary resources
6. Review progress against goals
7. Evaluate manager performance vs. goals
 Control has 4 steps:
1. Setting quality standards
2. Appraising conformance to standards
3. Acting when the standards are exceeded
4. Planning for improvement in the standards
10 benchmarks of Quality:
1. Q is a company-wide process 7. Q is an ethic
2. Q is what the customer says it is 8. Requires continuous improvement
3. Q and cost are a sum not a 9. Is the most cost-effective, least
difference capital intensive route to productivity
4. Requires individual and teamwork 10. Is implemented with a total
5. Q is a way of managing system connected with customers and
6. Q and innovation are mutually suppliers
dependent
 Commitment of everybody in the
organization
 The company’s success depends on the
participation of everybody
 Opportunities for complete participation by
everybody
 Opportunities to do their job properly
LEADERSHIP-Concept
Leading People
Influencing People
Commanding People
Guiding People
Provide Direction
Lead People-----Manage Processes—Happy
Customer
Quality Council
Quality Council of India (QCI) has been set up as a joint
initiative of the Government of India and the Indian
Industry. It is a non-profit autonomous body registered as
a society under the Societies Registration Act.
The objectives of QCI are to:
 Establish an accreditation structure in the country
 Provide information on Quality & related standards
 Spread quality movement in India
 Besides establishing a national accreditation structure, QCI
will provide strategic direction to the quality movement in
the country.
QUALITY STANDARDS
 Quality Standards were developed to assist
companies control quality and maintain a high
standard of customer satisfaction.
 Quality has become a lot more than that ,quality
standards can assist your company with good
management practices, reduce risk and increase
profit margins.
 A good quality system should not be written just
to satisfy the accreditation process, but should
be written with the company's business practices
in mind and to enhance procedures and policies
to ensure sound operation.
QUALITY STANDARDS
 The principles of the ISO Quality System can be
applied to every company, regardless of its size,
type or industry.
 Having a good quality system in place will ensure
that your products, services are of the highest
standards, your customers are happy and the
future of your organisation is heading in the right
direction.
 ISO is the International Organization for
Standardization, based in Switzerland it was
established in 1947 to develop common
international standards. It has members from over
140 countries worldwide.
 ISO published its first standards in 1987 and revised in
1994. ISO 9000 refers to the set of quality
management standards. The 1994 standards are
known as ISO9001. A new set of standards were
released in November 2001, these are known as ISO
9001:2000. The transition from an existing ISO9001
standard to a ISO 2000 standard can be achieved
relatively easily. If you are starting a new Quality
Management System, it would be best to use the new
ISO 2000 standards.
 ISO 9000 is primarily concerned with quality
management----anything that affects a product or
service required by a customer and what that
organisation does to ensure that a certain standard of
quality is achieved and maintained.
 ISO 14000 is primarily concerned with the
environment----what an organisation does to manage
the impact of its activities on the environment.
BARRIERS TO TQM
 Poor Planning
 Lack of Management Commitment
 Resistance of the workforce
 Lack of Proper Training
 Teamwork complacency
 Use of an off-the-shelf program
 Failure to change organizational philosophy
 Lack of resources provided
 Lack of effective measurement of quality
improvement