TOTAL QUALITY MANAGEMENT

TOTAL QUALITY MANAGEMENT

Total Quality Management (TQM)  is  an  enhancement  to  the  traditional  way  of  doing business.

Total  -  Made up of the whole

Quality  -  Degree of Excellence a Product or Service provides.

Management  -  Art of handling, controlling, directing etc.

TQM  is  the  application  of  quantitative  methods  and  human  resources  to  improve  all the

processes within an organization and exceed CUSTOMER NEEDS now and in the future.

 DEFINING QUALITY

 Quality can be quantified as follows

 Q=P/E

 Where

Q  =  Quality

 P  =  Performance

 E  =  Expectation

 DIMENSIONS OF QUALITY :

 Dimension  Meaning and Example

Performance                            Primary product characteristics, such as the brightness of the picture

 Features                                  Secondary  characteristics,  added  features,  such  as  remote

control

Conformance                          Meeting specifications or industry standards, workmanship

 Reliability                               Consistency of performance over time, average time of the

unit to fail

Durability                                Useful life, includes repair

 Service                                   Resolution of problems and complaints, ease of repair

 Response                                Human – to – human interface, such as the courtesy of the

dealer

Aesthetics                               Sensory characteristics, such as exterior finish

 Reputation                             Past  performance  and  other  intangibles,  such  as  being

ranked first

 QUALITY PLANNING

 The following are the important steps for quality planning.

 1.  Establishing quality goals.

 2.  Identifying customers.

 3.  Discovering customer needs.

 4.  Developing product features.

 5.  Developing process features.

 6.  Establishing process controls and transferring to operations.

 IMPORTANT POINTS TO BE NOTED WHILE QUALITY PLANNING:

 1.  Business, having larger market share and better quality, earn returns much higher than

their competitors.

 2.  Quality and Market share each has a strong separate relationship to profitably.

 3.  Planning  for  product  quality  must  be  based  on  meeting  customer  needs,  not  just

meeting product specifications.

 4.  For same products. We need to plan for perfection. For other products, we need to plan

for value.

QUALITY COSTS 

QUALITY COSTS:-

Quality  costs  are  defined  as  those  costs  associated  with  the  non-  achievement  of product/service quality as defined by the requirements established by the organization and its contracts with customers and society.

Quality cost is a cost for poor product of service.

ELEMENTS OF QUALITY COST:-

C o s t  of prevention

C o s t  of appraisal

C o s t  of internal failures

C o s t  of external failures.

1. PREVENTION COST

Marketing / Customer / User.

Product / Service / Design Development.

Purchasing

Operations (Manufacturing or Service)

Quality Administration.

2. APPRAISAL COST

Purchasing Appraisal Costs.

Operations Appraisal Costs

External Appraisal Costs

Review of Test and Inspection Data

Miscellaneous Quality Evaluations

3. INTERNAL FAILURE COST

Product or Service Design Failure Costs (Internal)

Purchasing Failure Costs

Operations (Product or Service) Failure Costs

4. EXTERNAL FAILURE COST

Complaint Investigations of Customer or User Service

Returned Goods

Retrofit and Recall Costs

Warranty Claims

Liability Costs

Penalties

Customer or User Goodwill

Lost Sales

ANALYSIS OF QUALITY COSTS:-

Index numbers

Trend  analysis

Pareto  analysis

The  purpose  of  quality  cost  analysis  is  to  determine  the  cost  of  maintaining  a certain level of quality. Such activity is necessary to provide feedback to management on the performance of quality assurance and to assist management in identifying opportunities.

INDEX NUMBERS:

Index  Numbers  are  often  used  in  a  variety  of  applications  to  measure  prices,  costs  (or) other  numerical  quantities  and  to  aid  managers  in  understanding  how  conditions  in one period compare with those in other periods.

TREND ANALYSIS:

Good visual aids are important communication tools.

Graphs are particularly useful in presenting comparative results to management.

Trend Analysis is one where Time-to-Time comparisons can be made which illustrates

PARETO ANALYSIS :

Joseph Juran observed that most of the quality problems are generally created by only a few causes. For  example,  80%  of  all  internal  failures  are  due  to  one  (or)  two  manufacturing problems. Identifying these “vital few” and ignoring the “trivial many” will make the corrective action give a high return for a low money input.

BASIC CONCEPTS OF TOTAL QUALITY MANAGEMENT:-

 Top  management committed to quality in all aspects

Customers  focus of the organization

Process  focus and improvement

Measurement of performance

Employee  involvement and empowerment

Continuous  improvement

Bench  marking

Teams  Supplier  teaming

Training  of employees

Inventory management

Communication 

Quality cost.

 PILLARS OF TQM:-

Problem solving discipline

Interpersonal  skills

Teamwork 

Quality improvement process.

SIX BASIC CONCEPTS OF TOTAL QUALITY MANAGEMENT

1.  Management Commitment

2.  Customer Focus

3.  Involvement and utilization of entire work force

4.  Continuous Improvement

5.  Treating Suppliers as Partners

6.  Establish Performance Measures for the processes

OBSTACLES IN IMPLEMENTING TQM :

Lack  of Management Commitment

Inability to change Organizational culture

Improper  planning

Lack  of continuous training and education

In compatible  organizational structure and isolated individuals and departments

In effective  measurement techniques and lack of access to data and results

paying  inadequate attention to internal and external customers

Inadequate  use of empowerment and teamwork

Failure  to continually improve

BENEFITS OF TQM :

Improved  quality

Employee  participation

Team work

Working relationships

Customer satisfaction

Employee satisfaction

Productivity

Communication

Profitability

Market share