Quality--TQM

1. Quality--TQM

2. History Of Total Quality management Toyota Japan after the WW2

3. In today’s world customer is king. You can ignore him at your own peril. • Gone are the monopolistic days where customer would take whatever the manufacturer dishes out. • Today he wants goods on his own terms and that too if he sees value in it. • Ultimately that means doing things that add value to the product, from customer’s viewpoint. • Which means “meeting or exceeding customer’s expectation” (Juran’s definition), OR • “conformance to requirement” (Crosby’s definition). • These are only some of the words that define quality.

4. And why “Total”? Total means bringing quality into every aspect and not just in product or manufacturing, be it in sales or even a lowly operator punching challans. Every activity has to be viewed from customer’s perspective and hence devoid of waste, and ‘filled ‘ with quality--- “TOTAL”. TQM consists of ………………….. • A committed management • Focus on the customer • Involvement of the total workforce • Continuous Process Improvement • Performance measuring • Based on prevention rather than Inspection Training Organization Local ownership Employee Empowerment

5. The New World Of Work • People who once did only as instructed now make informed decisions • Managers stop acting like supervisors and behave more like coaches • Workers role changes from controlled to empowered

6. Definition of Total Quality Mgt Is defined as the integrated approach in delighting the customer ( both Internal and external) by meeting their expectations on a continuous basis through everyone involved in the organization. Tradeoff between cost and quality Example it cost 10 to make a product . You make 50 units So 500 is the total cost If 10 out of these get rejected then still your cost remains 500 so the per piece cost now is 500/40 = 12.5 Thus poor quality has increased the costs

7. Dimensions of Quality • Performance: Customer expects a certain level of performance from a product. • Features: Features provide additional attributes of enhancing the quality. • Reliability: Denotes the expectation that the product performs satisfactorily for a period of time. • Conformance: Meeting the specifications and standards of design • Durability: How long does the product lasts before it requires a replacement. • Serviceability: The ease with which the product can be serviced. • Aesthetics: Customers also value the aesthetics of the product. • Safety: Safety aspects denote the assurance to the customer that there are no hazards in using the product • Other perceptions: Customers may also have a host of subjective perceptions such as brand name, image, impact of advertising etc. in his/her assessment of quality. • Consistency • Freedom from deficiency • Fitness for Purpose

8. TQM Philosophy means that………………… 1) You will meet your customer requirements each day every day • You will get things done right first time and every time 3) You will understand and control the quality costs 4) You will introduce systems which control quality at all stages of production (or installation). 5) You will train your staff on quality and then empower them control quality in their activities 6) You will plan and implement continuous improvement programs

9. 1) Quality is conformance to standards. • Statistical Process Control (SPC), Poka Yoke (Mistake Proofing), and many Q.C. tools, focus on conformance to standards. 2) Meeting the Need of the customer, example scooter 115 kg and height 42 inches, customer perception 3 ) Quality is fitness for use. • Customers may put the product or service to such multiple uses. • Over period of time, what will be the defects/failures. Health and safety issues

10. Alternative definitions of Quality

11. Quality CostingCategories of Quality Costs Quality Costs Control Costs Failure Costs Appraisal External Prevention Internal

12. Cost of Quality • Quality costs fall into two categories, the cost of failure to control quality and the cost of controlling quality. • Cost of Failure : The cost of failing to control quality are the cost of producing material that do not confirm to quality standards, they are again of two types • ◊ Internal failure costs : The cost of correcting quality problems while the product is in the plant. Generally this cost includes cost of scrap, rework, spoilage etc. • ◊ External failure costs : These are the costs of correcting problem after goods having been delivered to the customer. These are the warranty cost, field servicing cost, cost of replacement and all other costs associated in trying to keep a customer satisfied. In real terms external cost is nothing but a reflection of internal cost. If internally there are so many defects that it becomes humanely impossible to trap, these reflect in high external costs.

13. Cost of Quality • Cost of controlling Quality : These can again be broken down into two parts. • ◊ Preventive costs : This is the cost of doing avoiding trouble by doing job rightthe first time. They include training costs, costs associated with SPC, machine maintenance, and quality planning costs. If any cost is desirable this is it. • ◊ Appraisal costs : The costs associated with checking, auditing quality in an organization. Inspection is a non value added activity, and hence costs added in inspection are also of no value.