introduction tototal quality management

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INTRODUCTION

Deming and Juran introduced statistical quality control

to Japanese workers after WW II, as a part of General

Mc. Arthurs rebuilding programme. Although this was

not much different from what was being done in

America, there was one vital difference. They

convinced top Japanese managers that quality

improvement would open new world markets and was

necessary for survival of their nations. The managers

believed and fully supported the concept of quality

improvement.

The Japanese were in ideal position to embrace

this philosophy. The country was devasted from the

war, and they had few natural resources with which to

compete, except their people. During the next 20

years, while the Japanese were improving quality at an

unprecedented rate, quality levels in the west

remained stagnant. Western Manufacturers had little



need to focus on quality. America had a virtual

monopoly in Manufacturing, and the Post war

economy was hungry for nearly any kind of consumer

good. Top managers focused their efforts on

Marketing, Production quantity and financial

performance.

Definition and Meaning :-

Total Quality Management is defined as an

integrated approach in delighting the customer (both

internal & external) by meeting their expectations on

a continuous basis, through every one involved with

the organization, working on continuous

improvement along with proper problem solving

methodology.

The term Customer refers to all those to whom we

supply a product, service or information. Thus apart



from the ultimate users, the retailers, stockists and

transporters become the external customers to the

company. Departments within the company become

internal customers to each other. Thus the Production

department is a customer to the Purchase department

and the supplier to the sales and Dispatch

departments.

Total = Quality involves everyone and all activities

in the company.

Quality = Conformance to requirements (meeting

customer requirements)

Management = Quality can and must be managed.

TQM = a process for managing Quality; it must be a

continuous way of life; a philosophy of perpetual

improvement in every thing we do.

TQ M compared to ISO 9000 :-



y Meeting Customers Requirements

y Reducing Development Cycles Times

y Just In Time/Demand Flow Manufacturing

y Improvement Teamsy Reducing Product and Service Cost

y Improving Administrative Systems Training

Principles of TQ M :-

The Principles of TQM are as follows:

1. Quality can and must be managed.

2. Everyone has a customer and is a supplier.

3. Processes, not people are the problem.

4. Every employee is responsible for quality.



5. Problems must be prevented, not just fixed.

6. Quality must be measured.

7. Quality improvements must be continuous.

8. The quality standard is defect free.

9. Goals are based on requirements, not negotiated.

10. Plan and organize for quality improvement.

Elements of TQ M :-

Focus on Q uality and Prevention of Problems

Many definitions of quality exist. Quality can be

defined as consistently producing what the customer

wants while reducing errors before and after delivery



to the customer. More importantly, however quality is

not so much an outcome as a never-ending process of

continually improving the quality of what your

computer produces.

Encourage the Proper Climate, Empower Employees

For continuous improvement to work, management

must empower employees, so they are willing to

innovate and act in an atmosphere of trust and

respect. All of the other components can be in place,

and TQM still fail. Employees motivated to improve

service to their customers with the climate allowing

them to do so is a potent combination.



ACKNOWLEDGEMENT

I would like to express my gratitude for the people who

were part of this Project Report, directly or indirectly

people who gave unending support right from thestage the idea was conceived.



TOTAL QUALITY MANAGEMENT

Total= Made up of whole Quality= Degree of excellence a

product/service provides Management= Act/art ( manner of

handling, controlling, directing, etc..). TQM is an art of

Managing the whole to achieve excellence. The basis of TQM

is to reduce the errors produced during the manufacturing or

service process, increase customer satisfaction, streamline

supply chain management, aim for modernization of

equipment and ensure workers have the highest level of

training. One of the principal aims of TQM is to limit errors to

1 per 1 million units produced. Total Quality Management is

often associated with the development, deployment, and

maintenance of organizational systems that are required for

various business processes.



TQM focuses on quality at every level. An organization

that adopts TQM should be ready to implement

change. QUALITY is the BUZZ word in the domestic and

International markets. Organizations should review its

policies, practices and procedures in all areas of

management, keeping in mind that Quality is the way

of life and not a magic formula.

Q uality management can be considered to have three

main components: quality control, quality assurance

and quality improvement. Quality management is

focused not only on product/service quality, but also

the means to achieve it. Quality management

therefore uses quality assurance and control of

processes as well as products to achieve quality.



Needs of TQ M :

Needs of TQM Rising Customer Expectations Increasing

Competitive Pressure Changing perceptions of customers

Internal pressure for improvement Managers and workforce

perceptions To survive in market.



What does TQ M cover :

What does TQM cover: Makes an organization more

effective Establishes a new culture , which enables

growth and longevity. Provides a working environment

in which everyone can succeed. Reduces stress,

wastes. Build teams, partnerships and cooperation.

Basic Concepts of TQM :

Basic Concepts of TQM Set the goals and achieving

them. Customer satisfaction (unwavering focus)

Workforce participation. JIT, efficiency. Quality

orientation Quality improvement.

Success of TQ M :

Success of TQM Reduction in complaints Involvement



of all the work force Recognition by the customers

Improved attitudes at & to work Reduction in errors

Increases productivity Problem solving tool.



QUALITY

QUALITY Excellent product that fulfills or exceeds our

expectations. Degree of excellence a product provides.

The result of care. It is what the customer gets out & is

willing to pay for. The product free of

deficiencies/defects. Superior or high rank.

QUALITY Quality= Performance/Expectation. If

Quality > 1 (customer has good feeling about the

product) .

Performance/Expectation are based upon perception.

Dimensions of Q uality :

Dimensions of Quality Performance (Primary Product

Characteristic) Features (Secondary Product

Characteristic) Durability Service Response Reputation

Conformance Aesthetics Reliability



PRINCIPLES

Quality management adopts a number of management

principles[2]

that can be used by upper management to

guide their organisations towards improved

performance. The principles cover:

Customer focus

Leadership Involvement of people

Process approach

System approach to management

Continual improvement

Factual approach to decision making

Mutually beneficial supplier relationships

Customer & TQ M :

Customer & TQM The word Customer derives from

CUSTOM meaning habit. (needs, requirements,

wants, desires) as how to fulfill these.. TQM does not

occur overnight, there are no quick remedies. TQM



focuses on quality at every level. An org. that adopts

TQM should be ready to implement change An orgs

success depends on how many customers it has, how

much they buy & how often they buy.



Service Quality Gap Model

1.CUSTOMER EXPECTATION (UNDERSTANDING HE

CUSTOMER) (GAP 1)

2. MANAGEMENT (TRANSFORMING THE CUSTOMER

EXPECTATION/PERCEPTION = SERVICE DESIGN) (GAP 2)

3.SERVICE STANDARDS ( CONFORMANCE) (GAP 3)

4.SERVICE DELEIVERY (COMMUNICATION) (GAP 4)

5.CUSTOMER PERCEPTION (CUSTOMER SATISFACTION)

(GAP 5) SERVICE = to carry out the orders of customers



The five gaps that organizations should measure,

manage and minimize:



y Gap 1 is the distance between what customers

expect and what managers think they expect

Clearly survey research is a key way to narrow this

gap.

y Gap 2 is between management perception and the

actual specification of the customer experience

Managers need to make sure the organization isdefining the level of service they believe is needed.

y Gap 3 is from the experience specification to the

delivery of the experience - Managers need to

audit the customer experience that their

organization currently delivers in order to make

sure it lives up to the spec.

y Gap 4 is the gap between the delivery of the

customer experience and what is communicated

to customers - All too often organizations

exaggerate what will be provided to customers, or

discuss the best case rather than the likely case,



raising customer expectations and harming

customer perceptions.

y Finally, Gap 5 is the gap between a customer's

perception of the experience and the customer's

expectation of the service - Customers'

expectations have been shaped by word of mouth,

their personal needs and their own pastexperiences. Routine transactional surveys after

delivering the customer experience are important

for an organization to measure customer

perceptions of service.



Costs of Q uality

1.COST OF CONFORMANCE (UNAVOIDABLE COST) :- It

is an unavoidable cost such as prevention and appraisal

cost.

Prevention Cost = to investigate, prevent or reduce

errors etc.e.g. cost of planning, training..

Appraisal Cost = cost of assessing the quality achieved.

e.g. cost of inspection/testing, audit..

2. COST OF NON-CONFORMANCE (AVOIDABLE COST)

:- It is avoidable cost which can be avoided during

tests, manufacturing etc. It is of two types internal and

external failure cost.

Internal Failure Cost = Cost arising within the

manufacturing. e.g. re-inspection, scrap, re-work,re-



design, modification, overtime.

External Failure Cost = Cost arising outside the

manufacturing. e.g.replacement, equipment failure,

loss of goodwill.



Historical Review & Japanese Success / Indian

success :

Historical Review & Japanese Success / Indian success

History of Quality Control is as old as industry itself The

concept of specialization was introduced during

Industrial Revolution, as a result a worker no longer

made the entire product, only a portion. In 1924, W.A.

Shewart developed a Statistical Chart for the control of

product variables. In 1946, the American Society for

Quality Control was formed. Recently the name was

changed to American Society for Quality (ASQ). This

organization through publications, conferences,

training, sessions, lectures etc.. Has promoted the use

of quality for all types of production. Japanese set the



quality standards for the rest of the world. In 1960,

Quality Improvement Techniques were applied by

Japanese workers. 1970s & 1980s = American

managers, engineers.. Visited Japan to learn about the

Japanese Miracle. 1990 onwards ISO ( International

Organization for Standardization) is gaining popularity

for its Quality Management System.

Historical Review & Japanese Success / Indian success

World renowned TQM expert Prof. Washio has

predicated that the quality of Indian manufacturing will

overtake that of Japan in 2020. Indian companies are

good at quality, its time they formulate strategies.

Many Indian companies have got Deming prize (In

1951 JUSE=Japanese Union of Scientists & Engineers,



started the DEMING PRIZE because Dr. Deming

donated the earnings from the sale of his papers to

JUSE).. So far China has not even entered the DEMING

Radar.



MANAGEMENT TECHNIQUES

1. NOMINAL GROUP TECHNIQUE (NGT)

2. BRAIN STORMING

3. DELPHI METHOD

1. Nominal Group Technique (NGT) :It is a Group

Creativity Technique. Issues/ Ideas from every

member of the team is put for effective decision. It

takes 2 hours or so to complete the activity. E.g. A

team wants to decide which problem to work

upon, every members writes on a piece of paper

the problem they think is most important. All the

papers are collected and all the problems are

listed on the chart, then each member of the team

uses another piece of paper to rank the problem



from least important to most important. 1 for Min.

Points for each problem are totaled and the item

with highest no. of points is considered to be the

most important.

2. Brain Storming :It is a Group Creativity

Technique designed to generate a large no. of

ideas for the solution of the problem. It takes less

time. Brain Storming is most effective with group

of 8-12 people and should be performed in a

relaxed environment. Brain Storming session tries

to extract max. no. of ideas in a shortest possible

time.

4 Basic rules in Brain Storming :



Brain Storming Focus on Quantity, Withhold Criticism

Welcome Unusual Ideas, Combine and Improve Ideas.

Steps of Brain Storming

Define a problem as a creative CHALLENGE Give a time

limit, say 25 minutes to think solution for the problem

Once the Brain Storming starts, participants shout out

solutions/ideas & then write them on white board etc.,

for all to see. Criticism is not to be encouraged,

Laughing /jokes is to be encouraged.. No cross

questioning, no interpretations, no judgments, no

evaluations etc.. Make sure everyone involved in Brain

Storing Session is in agreement Finding which

idea/solution best solves the problem, score each

idea/solution from least important to most important.



1 for Min. The Idea/Solution with the highest score will

best solve the problem. But should keep record of

other best ideas/solutions as well, in case the best

idea/solution does not work.

DELPHI METHOD :

The procedure is same as that of Brain Storming but

with the inclusion of an EXPERT, who puts his/her

opinions/ findings in front of the members of the

group.



7 MANAGEMENT TOOLS :

1. Affinity Diagram

2. Interrelationship Diagraph

3. Tree Diagram

4. Prioritization Matrix

5. Matrix Diagram

6. Process Decision Program Chart (PDPC)

7. Activity Network Diagram

1. Affinity Diagram :Unstructured to useful way

Generates large number of ideas/issues & then

logically group them for problem understanding &

possible break through solution. Large groups to be

divided into smaller groups with appropriate

headings. This tool takes large amounts of



disorganized data and information and enables one

to organize it into groupings. It was created in 1960

by Japanese Jiro Kawakita.

2. Interrelationship Diagraph : It is a visual display

that maps out the cause (links among complex

problems, identifies to focus on the desired

outcomes.) This tool displays all the interrelated

cause-and-effect relationships and factors involved

in a complex problem and describes desired

outcomes. The process of creating an

interrelationship diagraph helps a group analyze

the natural links between different aspects of a

complex situation.



3. Tree Diagram : This tool is used to breakdown

broad categories into finer and finer levels of detail

Tree Diagram starts with 1 item that becomes into

2 or more branches and so on (so as to accomplish

the goal or task) It can map levels of details of

tasks that are required to accomplish the goal or

task. Procedure: a) Develop a statement of goal b)

What tasks must be done to accomplish them c) Do

a necessary & sufficient check. d) Try to reach to

the root cause Tree Diagram is used in strategic

decision making.

4. Prioritization Matrix : This tool is used to

prioritize items and describe them in terms of

weighted criteria. Generates a set of criteria for

quality decision. It aids in selecting which



problems/ issues to pursue. Helps to rank problems

( Brain Storming/GD

s). Each member votes 3

times for each criteria (Frequency, Importance,

Feasibility) 3-Max & 1- Min. i.e. total

votes/person= 9 -The problem with maximum

points is taken first (prioritize) .

5. Matrix Diagram : This tool shows the

relationship between items. Facilitates the

strength (relationship) between 2 or more

elements/variables. It consists of table where rows

& cols.are interrelated . Useful in Decision Making.

Matrix Diagram shows the relationship and

encourages the team to think in terms of their

strengths. It allows the comparison of



the tasks involved in completing a given project. It

is a method to analyze the involved tasks in

completing a given project, especially the TIME

needed to complete each task & to identify the

min. TIME needed to complete the total project. It

was developed primarily to simplify the planning &

scheduling of large and complex projects., e.g.

Railway Projects, Bridges, Airports, Flyovers etc



STATISTICAL TOOLS

The word Statistics play an essential role in TQM. They

provide the raw materials to TQM, these materials

must be processed to be useful, just as crude oil must

be refined into petrol before it can be used by an

automobile engine.

MEAN :

It is obtained by adding all the terms and thus dividing

the result by no. Of terms

MEDIAN :

A median is described as the numeric value separating

the higher half of a sample, a population, or

a probability distribution, from the lower half.

Themedian of a finite list of numbers can be found by

arranging all the observations from lowest value to

highest value and picking the middle one. If there is an



even number of observations, then there is no single

middle value; the median is then defined to be

the mean of the two middle values.

MODE :

Value that occurs in larger frequency

RANGE :

Measure of variation of items.

STANDARD DEVIATION :

In probability theory and statistics, the standard

deviation of a statistical population, a data set, or

a probability distributionis the square root of

its variance. Standard deviation is a widely used

measure of the variability or dispersion, being

algebraically more tractable though practically

less robust than the expected deviation or average

absolute deviation

CORELATION ANALYSIS :

Relationship between two variables.

SIMPLE REGRESSION :

In statistics, simple linear regression is the least

squares estimator of a linear regression model with a



single predictor variable. In other words, simple linear

regression fits a straight line through the set of n points

in such a way that makes the sum of

squared residuals of the model (that is, vertical

distances between the points of the data set and the

fitted line) as small as possible.

PROBAB

ILITY DISTRIBUTION :

In probability theory and statistics, a probability

distribution identifies either the probability of each

value of a random variable (when the variable

is discrete), or the probability of the value falling within

a particular interval (when the variable

is continuous).[1]

The probability distribution describes

the range of possible values that a random variable can

attain and theprobability that the value of the random

variable is within any (measurable) subset of that



range.

NORMAL DISTRIBUTION :

In probability theory and statistics, the normal

distribution, or Gaussian distribution, is an absolutely

continuous probability distribution whose cumulants of

all orders above two are zero. The graph of the

associated probability density function is bell-

shaped, with peak at the mean, and is known as

the Gaussian function or bell curve:

BINOMIAL DISTRIBUTION :

It is frequently used to model number of successes in a

sample of size n from a population of size N. Since the

samples are not independent (this is

sampling without replacement), the resulting

distribution is a hypergeometric distribution, not a

binomial one. However, for N much larger than n, the



binomial distribution is a good approximation, and

widely used.



DEMINGs PHILOSOPHY

DEMINGs PHILOSOPHY No Individual had more

influence on quality management than Deming FATHER

of Quality Revolution.

The Deming Chain Reaction :

The Deming Chain Reaction :- Improve Quality Costs

Decreases Productivity.

Increases Capture the market with better quality.

Stay in Business Provide Jobs & more jobs.

PDCA CYCLE :

PDCA CYCLE ORGINALLY CALLED SHEWART CYCLE P=

PLAN (FIND OPPURTUNITIES) D= DO (PUT INTO

ACTION) C= CHECK (CHECK THE RESULTS) A= ACT (IF



THE RESULTS ARE POSTIVE, ADOPT THE PROPOSED

PLAN

Demings 14 Points :

1. Create constancy of purpose towards

improvement.

2. Adopt the new philosophy.

3. Cease dependence on mass inspection.

4. End the practice of awarding business on the basis

of price tag.

5. Find problems Institute training Institute modern

methods of supervision.

6. Drive out fear Break down barrier between

departments.

7. Eliminate numerical goals, posters, slogans etc.8. Eliminate numerical quotas.

9. Remove barriers between hourly worker and his

right of pride.

10. Institute a vigorous programmer of education

and retraining.

11. Push everyday on the above 13 points



JURANs Philosophy :

JURANs Philosophy Coined the term FITNESS FOR USE

OF PURPOSE Identified problems in

ORGANIZATION,COMMUNICATION, & COORDINATION

OF FUNCTIONS. BELIEVED in 80-20 Principle

JURANs 10 Points : Build awareness of the need and

opportunity for improvement, set goals for

improvement, organize to reach the goals, provide

training, carry out projects to solve problems, report

progress, give recognition, communicate results, keep

score, maintain momentum



CROSSBYs Philosophy

CROSSBYs Philosophy Best known for the concept of

ZERO DEFECTS DO IT RIGHT THE FIRST TIME Also

known for the concept of QUALITY IS FREE.

CrossBy has 4 absolutes of Q uality :

CrossBy has 4 absolutes of Quality Definition:

Conformance of requirements System.

Prevention Performance standard.

Zero defects Measurement.

Price of non-conformance

CrossBys 14 Points :

Make it clear that management is committed to quality

Form quality improvement teams. Determine where

current and potential problem lie. Evaluate the cost



quality. Raise the quality awareness. Take actions to

correct problems. Establish committee for zero defects

program. Train supervisors. Hold a zero defects day.

Encourage individuals to establish improvement goals

Encourage employees to communicate to

management. Recognize and appreciate those who

participate. Establish quality councils to communicate

on regular basis. Do it all over again so that quality

improvement never ends.

Development of 4 Fitness :

Development of 4 Fitness Evolution of QUALITY

CONCEPT .

THE 4 FITNESSES ARE :

THE 4 FITNESSES ARE:-

FITNESS TO STANDARD (1950s) (company focus)



FITNESS TO USE (1960s) (customer focus)

FITNESS TO COST (1970s) (company focus)

FITNESS TO LATENT REQUIREMENTS (1980s)

(customer focus)

Fitness to Standard :

Fitness to Standard Meeting the requirements of the

customer.

Fitness for Use :

Fitness for Use Effectiveness of a design .

Fitness to cost :

Fitness to cost Measurement and careful

identification of cost.

Fitness to latent requirements :

Fitness to latent requirements Customer delighters

(beyond the imagination of the expectation of the

customer)



7 QC/SPC TOOLS :

The SevenB

asic Tools of Q uality is a designation given

to a fixed set of graphical techniques identified as

being most helpful in troubleshooting issues related

to quality.[1] They are called basic because they are

suitable for people with little formal training in

statistics and because they can be used to solve the

vast majority of quality-related issues.[2]

The tools are:[3]

The cause-and-effect or Ishikawa diagram

The check sheet



The control chart

The histogram

The Pareto chart

The scatter diagram

Stratification (alternately flow chart or run chart)

HISTOGRAM :

A histogram is a graphical display of

tabular frequencies, shown as adjacent rectangles.

Each rectangle is erected over an interval, with an area

equal to the frequency of the observations in the

interval. The height of a rectangle is also equal to the

frequency density of the interval, i.e., the frequency



divided by the width of the interval. The total area of

the histogram is equal to the number of data. A

histogram may also be based on relative frequencies. It

then shows the proportion of cases that fall into each

of severalcategories, with the total area equaling 1.

The categories are usually specified as consecutive,

non-overlapping intervals of a variable. The categories

(intervals) must be adjacent, and often are chosen to

be of the same size

PARETO CHART :

What is it: A special form of a bar chart which seeks

to determine the most important factors in a situation.

It is based on the idea that a few causes produce a vast

majority of variations. A rule of thumb says 20% of

causes account for 80% of variations.

When to use it: When you want to determine which



corrective actions would yield the greatest quality

payback. A Pareto chart is a good way to set priorities

and to focus your quality efforts.

How to use it: Examine the data indicating the

frequency with which each cause of a problem occurs.

List them from most to least frequent. Plot them on a

bar graph. The left vertical scale indicates thefrequency that each bar represents. The right vertical

scale indicates the percentage of total occurrences that

is covered by the sum of the causes. For each cause,

add the per cent of problems that it accounts for to the

per cent accounted for by the causes to the left to it

and plot points against the right scale that represent

this total. Connect these points with a line.

CHECK SHEET :

The check sheet is a simple document that is used for

collecting data in real-time and at the location where



the data is generated. The document is typically a

blank form that is designed for the quick, easy, and

efficient recording of the desired information, which

can be either quantitative or qualitative. When the

information is quantitative, the checksheet is

sometimes called a tally sheet.

A defining characteristic of a checksheet is that data is

recorded by making marks ("checks") on it. A typical

checksheet is divided into regions, and marks made in

different regions have different significance. Data is

read by observing the location and number of marks

on the sheet.

.



CONTROL CHART :

What is it: A means of monitoring a process according

to tolerance limits. The chart allows you to track the

normal variations that indicate a process is in control

and to determine when it goes out of control. A

control chart is closely related to Statistical Process

Control. Its a visual means of representing whether a

process is within statistical limits.

When to use it: For any process with frequent and

measurable outcomes. A control chart enables you to

ignore changes in a process that are the result of

random variations and to react immediately to changes

that indicate a problem.

How to use it: Take a random sample of outcomes and

use statistical techniques to determine upper and

lower control limits. These are not the same as

specification tolerances. Rather, they are the values



which, if the outcomes exceed them, indicate that the

outcomes are not the result of random variation, but

of some specific cause.

Once the control limits have been determined, plot the

outcomes over time or occurrence. If a value is

obtained that is outside the control limits, its

necessary to investigate the cause. If all the values arewithin the limits, then the process is under control.

FISHBONE DIAGRAM :

Ishikawa diagrams (also called fishbone

diagrams or cause-and-effect diagrams)

are diagrams that show the causes of a certainevent.

Common uses of the Ishikawa diagram are product

design and quality defect prevention, to identify

potential factors causing an overall effect. Each cause

or reason for imperfection is a source of variation.

Causes are usually grouped into major categories to



identify these sources of variation. The categories

typically include:

People: Anyone involved with the process Methods: How the process is performed and the

specific requirements for doing it, such as policies,

procedures, rules, regulations and laws

Machines: Any equipment, computers, tools etc.

required to accomplish the job

Materials: Raw materials, parts, pens, paper, etc.

used to produce the final product Measurements: Data generated from the process

that are used to evaluate its quality

Environment: The conditions, such as location, time,

temperature, and culture in which the process

operates

FLOW CHART :

In statistics, stratified sampling is a method

of sampling from a population.

When sub-populations vary considerably, it is

advantageous to sample each subpopulation(stratum) independently. Stratification is the

process of grouping members of the population

into relatively homogeneous subgroups before



sampling. The strata should be mutually exclusive:

every element in the population must be assigned

to only one stratum. The strata should also becollectively exhaustive: no population element

can be excluded. Then random or systematic

sampling is applied within each stratum. This

often improves the representativeness of the

sample by reducing sampling error. It can produce

a weighted mean that has less variability than

the arithmetic mean of a simple random sample of the

population.

SCATTER GRAPH/DIAGRAM :

A scatter plot or scattergraph is a type

of mathematical diagram using Cartesian

coordinates to display values for two variables for a set

of data.

The data is displayed as a collection of points, eachhaving the value of one variable determining the

position on the horizontal axis and the value of the

other variable determining the position on the vertical



axis.[2]

This kind of plot is also called a scatter

chart , scatter diagram and scatter graph.



Benefits of having TQ M

y Increased customer satisfaction and loyalty

y Gain a competitive advantage

y Large market share

y Elimination of scrap, waste, errors, etc

y Increase employee involvement

y Teamwork and co-operation

y Information sharing

y Enhanced customer requirements knowledge

y Standardized recommended award amounts

y Defined customer satisfaction issues



y Examination of the strategic planning process

Common pitfalls leading to failure of TQ M

Overuse of process action teams

Some organizations treat process action teams like

candy: They want dessert before having dinner.

There has been a known case of 3000-person

organization with over 70 current process action teams

(PATs) working on a variety of issues. The organization

avoids measuring their success, provides them little

technical support, and still has not addressed the

systematic changes needed to support them. This

implementation strategy has a high risk of failure, and

TQM will probably not become an integral part of their

culture.

This problem occurs when an organization achieves

successes with its first teams or hears about wild



successes of other companies.

Not making systematic changes

Management must realize that to fully implement

TQM, satisfy its customers, and promote teamwork in

the entire organization often wrenching systematic

changes must be made: Profit sharing may be

introduced; individual performance appraisals may be

radically changed or eliminated; organizational

structure may be realigned away from functions

(production, quality, engineering) to a customer; more

authority may be given to line employees.

Not making decisions up front

Many organizations need to design the architecture

of their quality effort. If they do not, they risk pouring

time and dollars into an effort that will eventually



collapse. Among the decisions that should be made up-

front, before implementing a quality effort is: the

measures of success; the degree of employee

involvement; the depth and breadth of

implementation; and the techniques to be used. As

someone once said, If you dont know where you are

going, you may not like getting there.

Xerox Corporation using TQ M

In launching its Total Quality Management

programme, called Leadership through Quality, the

CEO of the company cited the fierce global

competition in the office machine business as the

motivator for making the fundamental changes at

Xerox to Total Quality in a $400 billion business. His

company had enjoyed a near monopoly status for



the sale and rental of Photocopy machines until

1975. Five years later Xeroxs market share of

Photocopy machines had fallen to below 50% and

the firm had a over a 100 direct competitors for that

core part of their business.

Xerox responded to the serious threat to its

business by taking the following steps:-

y Trimming its costs by about $600 million a year.

Worldwide, Xerox employees were reduced

through redundancy from 120,000 in 1980 to

104,000 three years later.

y Restructuring, led from corporate headquarters

in Stamford, Connecticut, each part of Xerox

reorganized itself for greater efficiency.

y Competitive benchmarking its new Rivals in

terms of products, service and practices.



y Launching a Total Quality Programme in

February, 1983 based on massive training in the

teachings of Deming and Juran.

The policy statement was simple and direct: Xerox is

a quality company. Quality is the basic business

principle for Xerox. Quality means providing our

external and internal customers with innovative

products and services that fully satisfy their

requirements. Quality is the job of every Xerox

employee.

Conclusion:-

Through TQM a company can win awards like

Malcolm Baldrige quality award and also can gain

recognition from ISO and others like a Deming

Company or Juran Company.

TQM not only helps in improving Productivity but



also will help the Co. to outstand in todays cut throat

competition.



BIBLIOGRAPHY

1. Prof. Aswani notes2. The Essence of Total Quality Management

------ John Bank

3. Productivity techniques

----- Dr. Uday Salunkhe

Dr. Srinivas

Gondhalekar

Websites

1. www.skyenet.net

2. www.improve.org

3. www.isixsigma.com

4. www.mazur.net 5. www.wikipedia.org



DATA ANALYSIS AND INTERPRETATION

Pareto charts:- Frequent production delays



Cause F

requency % to the total Cumulative Total

Machine Breakdowns 120 51.06% 51.06%

Raw material Shortages 88 37.45% 88.51%

Low quality raw materials 18 07.66% 96.17%

Electricity failures 9 03.83% 100%

Total 235 100%



1) In the manufacture of 1 kg Mischmetal ingots, the

product weight varies with the batch. Below are a

number of subsets taken at normal operatingconditions (subsets 1-7), with the weight values

given in kg.



S

e e ve e X A ve e e R A

ve e s ev S A e c e e

s se s e e e c s

s e ce e es e e e =4

X-Bar limits are computed (using ).



X-Bar limits are computed (using ).

No : Si n n=4 (a a i v y a ub ize), bo h

and can be u ed t o accu atel y calcul ate t he UCL

and LCL.

R-chart limits are computed.

S-chart limits are computed.

The v s s se s 8-11 e e e

e s e how they v y with in comparison with

the control limits



Figure E-4: S t f b t 8 11.



2)

introduction tototal quality management

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