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MMZG 522 Total Quality

Management

Rajiv Gupta

BITS Pilani August 2014

Lecture 1



Session 1

• Module 1 – Introduction to Dr. Rajiv Gupta, faculty for MMZG 522

– Introduction to the course and guidelines to the course

• Module 2

– Understanding Quality• Module 3 – Total Quality Management

• Module 4 – Quality Gurus

• Module 5 – Summary

2



Session 1

• Begin Module 1

– Introduction to Dr. Rajiv Gupta, faculty for

MMZG 538

– Introduction to the course and guidelines for

the course

3



• Dr. Rajiv Gupta

Education:

B.Tech. M.E. I.I.T. DelhiM.S. I.E. North Carolina State University

Ph.D. I.E. Purdue University

Taught at The State University of New York at

Buffalo, General Motors Institute, and the University ofMichigan, Dearborn in the U.S.

S.P. Jain Institute in Singapore and Dubai, FORE School of

Management, School of Inspired Leadership and BITS,

Pilani 4



Worked at Mahindra Logistics as Head of Solution

Design and Automotive Operations

Started and ran own Consulting Company as anInternational Associate of Tompkins Associate of

Raleigh, North Carolina

5



• It is the responsibility of the student to watch the

taped lectures, attend the recitations (or watch

taped), read the relevant chapters from the book

and other material that is made available.• For any questions, doubts pertaining to the

subject matter, please send me an email at

[email protected]. For all

administrative questions, please call or write theWILPD office at BITS Pilani. If you do not get a

satisfactory response please let me know.

7

mailto:[email protected]






• Assessment: There will be 2 exams and 2

on-line quizzes. The point breakdown will

be as follows:

– Mid-term exam (closed book) – 35%

– Final exam (open book) – 50%

– 2 on-line quizzes (open) – 15%

8



• I expect you to keep regular with the

material covered in class and with the

readings as assigned. This is your

responsibility.

9



Session 1

• End of module 1

10



Session 1

• Begin Module 2

– Understanding Quality

11



12

Quality

• What is quality?

• Who determines what is quality?• Who is responsible for quality?

• How has quality evolved?



14

Definition of Quality

• Quality= Q = P/E

Q = Performance/Expectations

• Quality has two sides:- Objective quality that can be measured

easily (by physical instruments).

- Subjective quality depends upon each

individual’ s perception. (Quality is a

subjective term for which each person

has his or her own definition).



15

Definition of Quality

• Manufactured product quality dimensions



16

Definition

of Quality



Who Determines Quality?

• In the old days, (and in some cases, even

today), the design and the quality

departments determined what is quality

– Conformance to specification

– Conformance to design

– Conformance to need??

• Today – the ultimate customer who pays

for the product or service determines what

is quality17



Who Determines Quality?

• Example of the U.S. auto industry

– Considered the effect of imports from Japan as an

aberration and limited to low cost vehicles

– Did not take into consideration the changingconsumer needs

– Blamed the customer for not understanding the effort

and cost going into the manufacture of costs and for

not buying American cars – Almost went out of business

18



Who is Responsible for Quality?

• In the days of craft production, the craftsman inspected

the product for non-conformities and defects and

corrected for them

• With mass production, we saw the growth of the

inspection department. In the Hawthorne plant of

Western Electric Co., there were 40,000 employees and

5,200 in the inspection department

• During World War II, we saw a growth of Statistical

Quality Control. But this was discontinued after the wardue to the tremendous increase in demand and the lack

of top management understanding and commitment

19



Who is Responsible for Quality?

• In Japan, after World War II, there was a tremendous

shortage of good quality radios and the U.S. occupation

forces requested the services of Dr. Deming and Joseph

Juran to train the Japanese manufacturing companies in

the fundamentals of quality and statistical quality control.Dr. Deming insisted, and got all the top management of

the Japanese companies to attend the training on quality

• Dr. Deming taught the Japanese, and later, the

American companies that quality is the responsibility oftop management. Without their understanding and

commitment, quality is not possible.

20



How Has Quality Evolved?

21

Inspection

Statistical Process Control

Understanding Customer

Needs

Anticipating Customer

Needs



Session 1

• End of module 2

22



Session 1

• Begin Module 3

– Total Quality Management

23



24

TQM- Total Quality Management

• TOTAL

-- Whole- Everyone involved

-- All parts of the organization involved

• How do you see your role in creating or ensuringquality in your organization?

• Think of areas such as design, purchasing,manufacturing, warehousing, maintenance, etc.



25

Total Involvement

• Market research -- must discover quality needs of the users.

• Product Development -- must create designs that are responsive totheir needs.

• Manufacturing and Operations Planning -- must regulate theseprocesses capable of executing the product designs.

• Purchasing -- must obtain adequate materials.• Inspection and test -- must prove the adequacy of the productthrough simulated use.

• Marketing -- must sell the product for the proper application.

• Customer Service-- must observe the usage, remedy failures, andreport opportunities for improvement.

• Administrative and Support Activities-- must meet the needs of theircustomers, both internal and external.

• Management -- must take leadership in quality activities.

• Suppliers – must provide the right part at the right time, quality andcost



26

TQM - Total Quality

Management• QUALITY

-- Degree of excellence of a product

or service

-- Customer Satisfaction• Building quality versus weeding it out

• Deming’s “pride in work”



27

TQM- Total Quality Management

• MANAGEMENT-- Act, art, or manner of handling,

controlling, directing, etc.

• Reactive versus Proactive• Anticipate Requirements

• Leadership



28

TQM is both a philosophy and a

set of guiding principles• Of clear vision and mission for the organization

• To apply formal and quantitative methods

• To fully exploit human potential

• To continuously improve all processes within an

organization

• To meet and exceed customer needs for now

and in the future



29

TQM requires five basic

concepts:1. Visionary leadership

2. An unwavering focus on customers

3. Effective involvement and utilization of the

entire workforce

4. Treating suppliers as true partners.

5. Data based performance measurement and

continuous improvement of business andoperational processes.



30

New and Old Cultures



31

• Traditional = q =Little Q• Modern concept of Quality = Q = Big Q

Traditional vs. TQM

q Q



32

Quality is a Business Issue

• It is no longer only a quality manger’s job. • Quality relates to everything in an organization.

• Quality demands specialized knowledge,training and tools.

• TQM approach leads to successfulorganizations.

• Organization MUST have a well-developedQuality Management System (Study, Implement

and Improve)• Quality Certifications and Awards



33

TQM Framework



Session 1

• End of module 3

34



Session 1

• Begin Module 4

– Quality Gurus

35



36

Quality Gurus

• Walter Shewhart

• W.E. Deming

• Joseph Juran• Philip Crosby

• Feigenbaum

• Ishikawa• Taguchi

• Kano



Walter Shewhart

• Considered the father of Statistical Quality

Control and the Shewhart Cycle

• The Shewhart Cycle evolved into the

current PDCA/PDSA cycle

• Worked at Western Electric Co.

• Dr. W. E. Deming learned about Statistical

Quality Control, the Control Chart and the

Shewhart Cycle from Walter Shewhart

37



38

W.E. Deming

• Taught the Japanese companies basics of

SQC and the importance of quality at the

end of World War II

• Evolved the Shewhart Cycle into the

current PDSA/PDCA cycle

• 14 Points

• System of profound knowledge

• Predictable degree of uniformity



39

Joseph Juran

• Quality is fitness for use

• Quality is defined by product features and

absence of deficiencies

• Juran Trilogy



40

Quality –

Features

andFreedom from

Deficiencies



Juran Trilogy

• Quality Planning

• Quality Control

• Quality Improvement

41



Juran Trilogy

• Quality Planning

– 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.

– Optimise the product features so as to meetour needs and customer needs.

42



Juran Trilogy

• Quality Control

– Evaluate actual quality performance

– Compare actual performance to qualitygoals

– Act on the difference

43



Juran Trilogy

• Quality Improvement – Establish the infrastructure needed to secure annual quality

improvement.

– Identify the specific needs for improvement -the improvement

projects – For each project establish a project team with clear responsibility

for bringing the project to a successful conclusion

– Provide the resource, motivation, and training needed by the

team to:

• Diagnose the cause• Stimulate establishment of remedies

• Establish controls to hold the gains

44



45

Philip Crosby

• The definition of quality is conformance to requirements

(requirements meaning both the product and the

customer's requirements)

• The system of quality is prevention

• The performance standard is zero defects (relative to

requirements)

• The measurement of quality is the price of

nonconformance

• Quality is free

• Do It Right The First Time

http://www.ask.com/wiki/Zero_defects?qsrc=3044

http://www.ask.com/wiki/Quality_costs?qsrc=3044




http://www.ask.com/wiki/Zero_defects?qsrc=3044



46

A.V. Feigenbaum

• Total Quality Control

• Includes both planning and control

• Quality system to provide managerial

procedures to assure customer

satisfaction and an economical cost of

quality



47

Kaoru Ishikawa

• Use of quality tools to solve problems

• Ishikawa diagram



48

Genichi Taguchi

• Quality is loss to society

• Quality loss function

Kano Model



49

Kano Model

Goal: Customer Satisfaction

Kano Model of Quality suggests relationships of dissatisfiers (unspokenwants), satisfiers (Give more of), and delighters (Wows) to customer

satisfaction (CTS=Requirements Critical to Customer Satisfaction).



Session 1

• Begin Module 5

– Summary

51



Summary of Session 1

• Quality is the responsibility of top management

but requires the involvement of everyone

• Total Quality Management is a systems

approach to manage quality in an organization• Quality has evolved over the years to where the

focus today is on customers and not on the

manufacturers

• Significant advances have been made in quality

in the twentieth century

52



Session 1

• End of module 5

53

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