Total Quality Management

-BIJAY LAL PRADHAN

2

Introduction

Total – Made up of the whole(or) Complete.

Quality – Degree of Excellence a product or service

provides to the customer in present and future.

Management – Act , art, or manner of handling ,

controlling, directing, etc.

TQM is the art of managing the whole to achieve

excellence.

Quality and process

Quality in all function.

For an organization to be truly effective,

each component of it must work properly

together. Each part, each activity, each

person in the organization affects and is in

turn affected by others. Errors have a way

of multiplying, and failure to meet the

requirements in one part or area creates

problems elsewhere, leading to yet more

errors, yet more problems, and so on.

Managements that rely heavily on exhortation of the

workforce to ‘do the right job right the first time’, or

‘accept that quality is your responsibility’, will not

only fail to achieve quality but may create division

and conflict. These calls for improvement infer that

faults are caused only by the workforce and that

problems are departmental or functional when, in

fact, the opposite is true – most problems are

interdepartmental. The commitment of all members

of an organization is a requirement of ‘organization-

wide quality improvement’. Everyone must work

together at every interface to achieve improved

performance and that can only happen if the top

management is really committed.

COST OF QUALITY Quality costs are defined as costs associated with

non-achievement of product/service quality. In simple terms, quality cost is the cost of poor products/services.

The price of nonconformance (Philip Crosby) or the cost of poor quality (Joseph Juran), is 'Cost of Quality’ [refers to the costs associated with providing poor quality product or service.]

6

Customers will

seek out the

highest quality

product.

Improved quality that

exceeds customer

expectations will generate

more revenues that exceed

the cost of quality.

Therefore,

quality is

“free”.

Quality if Free

7

Total Quality Management (TQM)

W. Edwards Deming

proposed that improving

quality reduces cost and

improves profitability.

Quality can be and

should be improved

continuously.

Quality

Tota

l R

evenues &

Costs

Revenues

Cost

Max Profit

Max Quality

8

Cost of Quality

Cost of Achieving Good Quality

– Prevention costs

• costs incurred during product design

– Appraisal costs

• costs of measuring, testing, and analyzing

Cost of Poor Quality

– Internal failure costs

• include scrap, rework, process failure, downtime, and

price reductions

– External failure costs

• include complaints, returns, warranty claims, liability,

and lost sales

9

Prevention Costs

Quality planning costs– costs of developing and

implementing quality management program

Product-design costs– costs of designing

products with quality characteristics

Process costs– costs expended to make

sure productive process conforms to quality specifications

Training costs

– costs of developing and putting on quality training programs for employees and management

Information costs

– costs of acquiring and maintaining data related to quality, and development of reports on quality performance

10

Examples of prevention Cost

– Application screening

– Capability studies

– Controlled storage

– Design review

– Equipment maintenance

& repair

– Field testing

– Fixture design and

fabrication

– Forecasting

– Housekeeping

– Job descriptions

– Market analysis

– Procedure reviews

– Quality incentives

– Safety reviews

– Time and motion studies

– Survey

– Quality training

– Suppliers evaluation and training

– Quality Audit

– Zero Defect Program

11

Appraisal Costs

Inspection and testing– costs of testing and inspecting materials, parts, and

product at various stages and at the end of a process

Test equipment costs– costs of maintaining equipment used in testing quality

characteristics of products

Operator costs– costs of time spent by operators to gather data for

testing product quality, to make equipment adjustments to maintain quality, and to stop work to assess quality

12

Examples of appraisal cost

Document checking

Diagram checking

Equipment calibration

Final inspection

In-process inspection

Laboratory test

Personnel testing

Procedure testing

Receiving inspection

Shipping inspection

13

Internal Failure Costs

Scrap costs– costs of poor-quality

products that must be discarded, including labor, material, and indirect costs

Rework costs– costs of fixing defective

products to conform to quality specifications

Process downtime costs

– costs of shutting down

productive process to fix

problem

Price-downgrading costs

– costs of discounting poor-

quality products—that is,

selling products as

“seconds”

14

External Failure Costs

Customer complaint costs– costs of investigating and

satisfactorily responding to a customer complaint resulting from a poor-quality product

Product return costs– costs of handling and

replacing poor-quality products returned by customer

Warranty claims costs– costs of complying with

product warranties

Product liability costs

– litigation costs resulting from product liability and customer injury

Lost Market Share

– costs incurred because customers are dissatisfied with poor quality products and do not make additional purchases

Service After Sales– costs of associated with

the service after the product sales if found defective.

15

Classifying Quality Costs

16

17

Qual

ity R

elat

ed C

ost

Quality awareness and improvement

Failure

Appraisal

Prevention

Preventing Poor Quality (Comparison)

Failure Costs

• Internal

• ExternalFailure Costs

Repair Costs

Repair Costs

Appraisal Costs

Appraisal Costs

Prevention Costs

Prevention

Costs

Before Quality

Cost Alignment

Benefit

18

Cost of Quality (other version)

1. Like all things there is a price to pay for quality. This total cost can be split into two fundamental areas:

a. Non Conformance. This area covers the price paid by not having quality systems or a quality product. Examples of this are:

(1) Rework. Doing the job over again because it wasn't right the first time.

(2) Scrap. Throwing away the results of your work because it is not up to the required standard.

(3) Waiting. Time wasted whilst waiting for other people.

(4) Down Time. Not being able to do your job because a machine is broken.

b. Conformance. Conformance is an aim of quality assurance. This aim is achieved at a price. Examples of this are:

(1) Documentation. Writing work instructions, technical instructions and producing paperwork.

(2) Training. On the job training, quality training, etc.

(3) Auditing. Internal, external and extrinsic.

(4) Planning. Prevention, do the right thing first time and poka yoke.

(5) Inspection. Vehicles, equipment, buildings and people.

19

Cost of Quality (other version)

2. These two main areas can be split further as shown below:

FIGURE 1.3

20

Total Quality Management - Spring

2010 - IUG

1-10-100 Rule

$

$

$

$

$

$

$

$

$

$

1

10

10

0

Prevention

Correction

Failure

21

Total Quality Management - Spring

2010 - IUG

The 1:10:100 rule:

Re.1 spent on prevention will save Rs.10 spent on appraisal and Rs.100 on failure costs.

This rule helps one to prioritize expenditure on prevention, which is sure to bring in greater returns.

“The earlier you detect and prevent a defect the more you can save. If you catch a Rs. two resistor before you use it and throw it away, you lose two Rupees. If you don’t find it until it has been soldered into a computer component, it may cost Rs 50 to repair the part. If you don’t catch the component until it is in the computer user’s hands, the repair will cost hundreds of Rupees. Indeed, if a Rs. 5000 computer has to be repaired in the field, the expense may exceed the manufacturing cost.”

22

Total Quality Management - Spring

2010 - IUG

Taguchi Fundamental Concept

Quality should be designed and built into

the product and not inspected into it.

Quality is best achieved by minimizing

the deviation from target.

The cost of the quality should be

measured as a function of deviation from

the standard and loss should be measured

system wise

Taguchi’s Vs Traditional Approach

Taguch’s Traditional

When a product

moves from its

Target will cause the

loss even if the

product lies or not

within Limits

There is Good or

Bad Products only

as per Limits

Taguchi Loss Function

Taguchi suggested that the deviation of a

product from an optimum performance might

be described by a "quality loss function"

which can be selected with monetary value.

The objective of an organization should be to

minimize the quality loss function of its

product/ service. A quality loss function

indicates the relationship between production

effort and quality.

Taguchi’s Quadratic Quality Loss Function

Quality Loss Occurs when a product’s

deviates from target or nominal value.

Deviation Grows, then Loss increases.

Taguchi’s U-shaped loss Function Curve.

Taguchi Loss Function

Customer Tolerance

Unacceptable

Poor

Good

Best

Customer customer customerLower control quality upper control

Limit standard Limit

Loss

Quality loss function is a simple

quadratic formula

L=D2C where

L = Loss in rupees (any

measurable value)

D = Deviation from the target

quality standard value and

C = Cost of deviation

Maintenance and reliability

Maintenance refers to keeping equipment in a

good working condition through regular check

up and repair for its day-by-day operation.

It is very crucial to produce reliable product

continuously as per the requirement.

Under maintenance management, planning and

scheduling of maintenance, record keeping and

analysis, training to employees, parts

inventory, lubricating and inspection of

machine are to be performed.

Major Elements of Maintenance

Planning and scheduling of maintenance

Recording and analysis

Inspection and checks

Training to employers

Lubrication

Storage of spare parts

In order to establish a competitive strength and to

provide good customer service, companies must

have reliable equipment that will respond to

customer when it is needed. Thus, equipment

reliability can be maintained and improved in two

ways:

a) By improving engineering design.

b) By managing inventory level.

Objective of Maintenance

To ensure product and service quality and

satisfaction to customers.

To increase reliability and life of machines

and equipments to ensure plan safety and

minimize industrial accident.

To minimize operating cost.

To ensure continuity in production.

To maximize the utilization of capacity.

Importance of Maintenance

To be safe from inevitable losses due to

breakdown of the equipment.

To maintain proper functioning of the

machine

To prevent the loss due to plant breakdown

To ensure effective utilization of capacity

To prevent from the unexpected accident

.

If not done Maintenance…..

Loss in production time

Rescheduling in production plan

Spoilt the material due to sudden stoppage

Need for overtime

Needs for subcontracting work

Temporary work shortage

1. Direct cost:▪ Regular

maintenancecost

▪ Labor cost▪ Equipment &

parts cost▪ Stock

managementcost

▪ Training &technologicalcost

2. Indirect cost:

▪ Loss of production and

service

▪ Alternation of quality of

product and service

▪ Loss of potential sales

▪ Idle indirect labor

▪ Deterioration in workshop

and environment

▪ Delivery delays

▪ loss of goodwill

▪ Depression in employers

Cost of Maintenance

Types of Maintenance

Preventive maintenance

Corrective (Breakdown maintenance)

Predictive maintenance:

(a) Time based maintenance: It is a routine maintenance,

according to a specific time schedule prepared for each

machine and equipment on the basis of experience

and suggestions of manufactures. It contains

lubrication (oiling), cleaning, overhauling etc.

(b) Work base maintenance: maintenance activity will

be carried out after completion of certain work

(c) Opportunity base Maintenance: maintenance as

opportunity obtained eg. during holidays

(d) Condition base maintenance: condition of

machines and equipment, by regular inspections

and monitoring.

Preventive Maintenance

Causes of breakdown:▪ Failure to replace worn part▪ Lack of lubrication▪ Negligence in cooling if needed▪ Indifference towards minor failure▪ External factors such as voltage, impure fuels

etc▪ Indifference towards unusual sound and

vibrations

Breakdown Maintenance

Advantages of breakdown maintenance:▪ It involves minimum administrative works and

costs▪ Few records▪ Comparatively small staffs are required

Disadvantages of breakdown maintenance:▪ Delay in production▪ Faster plant deterioration▪ Increased chance of accident▪ Less safety to both workers and machines▪ More spoilt materials▪ Direct loss of profit

Breakdown Maintenance

• This is a method in which the service life of

important part is predicted based on inspection

or diagnosis, in order to use the parts to the

limit of their service life.

• Sensitive instruments and human sense is used

to predict troubles and troubles are cured before

the equipment fails.

Predictive Maintenance

Failure Analysis

The failure of any component frequently leads

to disruption.

To avoid reoccurrence of the failure of

component, it is important that whenever

failure occurs, the same is thoroughly

investigated to establish primary factor and

other important factors that lead to failure.

So that suitable recommendations can be

made to avoid failure in future.

Failure Analysis

In general, a component or assembly is

considered to have failed under the following

three condition

Inoperable

Operates but doesn’t perform the

intended function

Operates but safety and reliability is

very poor.

Fundamental Causes of failure

Failure can occur due to large factor related to

Design

Materials

Manufacturing

Handling

Fundamental Causes of failure

Systematic understanding on various factors

that can lead to failure of component under

following headings

Improper design

Improper selection of materials

Improper processing of materials

Poor handling

Poor maintenance

Failure modes & Effect AnalysisTabulation of equipment/components and their

associated single point failure modes, consequences

and safeguards. •Identification/assessment of risk is

derived from looking at each component (or machine

in the case of multi-unit manufacturing).

Item Identifi

cation

Description Failure

modes

Effects Safeguar

d

Actions

1 Car Tire Supports

Weight

Smooth Ride

Flat Stranded

Lose Control

Spare

Tire

Acceptab

le as is

Avoide

It has been observed that on receipt of failed

components failure analyst tend to jump into

conclusions based on half information and

tries to explore the deficiency in materials

This kind of quickness is uncalled for the

process vital clues, evidences and information

can be lost from the surface.

Optimum Maintenance Decisions

Repair versus replacement decision:

Sometimes repairing of some parts becomes

more expensive than replacing it. When

tube of cycle get puncture then repairing it

on or two time may not be expensive but if

it get puncture frequently the it will cost

less in replacing it because repairing tube

frequently may damage the tyre also which

cost very high.

Optimum Maintenance Decisions

Individual versus group replacement:

Replacing individual part may cost low but

the replaced part may not work properly if

the functions of the replaced part do not

match properly with function of the other

parts of the system which will cause the

further complication in the system.

Optimum Maintenance Decisions

Contract versus house maintenance

decision: In case of general, regular and

voluminous type of the maintenance

activities, it will be better to establish a

internal maintenance department. If the

volume of maintenance is less and rare then

it will be better to hire contract a

maintenance team for a certain period of

time.

Optimum Maintenance Decisions

Centralized versus decentralized

maintenance decision: If each department

of the organization requires different

equipment and rapid responses, then it will

more economic to establish separate

maintenance team for different department.

Optimum Maintenance Decisions

Maintenance Activities

Preventive Maintenance Cost

Total Cost

Breakdown Maintenance Cost

Cost

Y

0X

N

Total = All encompassing by maintenance

and production individuals working

together

Productive = Production of goods and

services that meet or exceed customers

expectations

Maintenance = Keeping equipment and

plant in as good as or better than the

original condition at all times.TP

MTotal Productivity Maintenance

TPM

TPM is a partnership between the

maintenance and production

organization to improve product

quality, reduce waste, reduce cost,

increase equipment availability and

improve maintenance state.

OBJECTIVES OF TPM

Improve Equipment Effectiveness

Achieve Autonomous

Plan Maintenance

To Train all staff in maintenance

skills

To Zero Breakdowns

▪ Designing machines that are reliable, easy to operate

and easy to maintain.

▪ Emphasizing total cost of ownership when

purchasing machines so that the service and

maintenance are included in cost.

▪ Developing preventive maintenance plans that

utilize the best practice of operators, maintenance

departments.

Training works to be operate and maintain their own machines

Reduce the variability through employee involvement

and excellent maintenance records. TPM mainly

includes following activities.

T P M

BENEFITS

❖Increased productivity

❖Equipment reliability

❖Reduced down time

❖Increased plant capacity

❖Low production maintenance costs

❖Team work Between Production &

Maintenance People

❖Improved safety & Profit