SUBMITED BY:

Hafsa Khan Rada Khan

Uzma Chandio

Department of Public Administration

University of Sindh jamshoro

OUR TOPIC IS

Contents:QualityCost Of QualityThe Evolution Of Total Quality Management

The Philosophy Of Total Quality Management

Quality Awards & StandardsTotal Quality Management Across The Organization

QUALITY:The standard of something as measured against other things of a similar kind; the degree of excellence of something.Quality can be quantified as:Q = P/EWhere:Q = QualityP = PerformanceE = Expectations

Dimensions Of Quality

Manufacturing Organizations Service Organizations

DIMENSIONS OF QUALITY:The Dimensions of Quality is divided into two categories:Manufacturing Organizations

Service Organizations

DIMENSIONS OF MANUFACTURING ORGANIZATIONS:

The Dimensions of Manufacturing Organizations is divided into 8 dimensions which are as follows:1) Performance2) Reliability3) Durability4) Serviceability5) Aesthetics6) Features7) Perceived Quality8) Conformance to Standards

PERFORMANCEPerformance refers to a

product's primary operating characteristics. This

dimension of quality involves measurable attributes;

brands can usually be ranked objectively on individual

aspects of performance. The performance of a product

often influences the profitability or reputation of

the end user.

RELIABILITYReliability is the likelihood that a product will not fail within a specific time period. This is a key element for users who need the product to work with out fail. This dimensions reflects the profitability of a product malfunctioning or failing within a specific time period.

DURABILITYDurability measures the length of a product life. When the product can be repaired, estimating durability is more complicated.

SERVICEABILITYThe speed with which

the product can be put into service when it breaks down as well as the competence & behavior of the service person.

AESTHETICSAesthetics referring to how the products looks. For instance, the painted finish on a piece of furniture.

FEATURESFeatures are additional

characteristics that enhance the appeal of the product or service to the user. Similar thinking can be

applied to features, it is a dimension of quality that is often a secondary aspects of performance.

PRECIEVED QUALITYPerceived Quality is the quality attributed to a good or service based on indirect measures. An equally important dimension of quality is the perception of the quality of the product in the mind of the consumer.

CONFORMANCE TO

STANDARDSThe dimension of Conformance depicts to what extent a product design & operating characteristics meet established standards.

DIMENSIONS OF SERVICE

ORGANIZATIONS There are 5 Dimensions of Service Organization or Quality which are as follows:1)Reliability2)Responsiveness3)Assurance4)Empathy5)Tangibles

RELIABILTYIt is the ability to perform the promised service dependably and accurately. Reliability means that the company delivers on its promises-promises about delivery, service provision, problem resolutions and pricing. Customers want to do business with companies that keep their promises, particularly their promises about the service outcomes and core service attributes. All companies need to be aware of customer expectation of reliability. Firms that do not provide the core service that customers think they are buying fail their customers in the most direct way.

RESPONSIVENESSIT IS THE WILLINGNESS TO HELP CUSTOMERS AND PROVIDE PROMPT SERVICE. THIS DIMENSION EMPHASIZES ATTENTIVENESS AND PROMPTNESS IN DEALING WITH CUSTOMER'S REQUESTS, QUESTIONS, COMPLAINTS AND PROBLEMS. RESPONSIVENESS IS COMMUNICATED TO CUSTOMERS BY LENGTH OF TIME THEY HAVE TO WAIT FOR ASSISTANCE, ANSWERS TO QUESTIONS OR ATTENTION TO PROBLEMS. RESPONSIVENESS ALSO CAPTURES THE NOTION OF FLEXIBILITY AND ABILITY TO CUSTOMIZE THE SERVICE TO CUSTOMER NEEDS.

ASSURANCEIt means to inspire trust and confidence. Assurance is defined as employees' knowledge of courtesy and the ability of the firm and its employees to inspire trust and confidence. This dimension is likely to be particularly important for the services that the customers perceives as involving high rising and/or about which they feel uncertain about the ability to evaluate. 

EMPATHYIt means to provide caring individualized attention the firm provide its customers. In some countries, it is essential to provide individual attention to show to the customer that the company does best to satisfy his needs. Empathy is an additional plus that the trust and confidence of the customers and at the same time increase the loyalty.

TANGIBLESSINCE SERVICES ARE TANGIBLE,

CUSTOMERS DERIVE THEIR PERCEPTION OF SERVICE QUALITY BY

COMPARING THE TANGIBLE ASSOCIATED WITH THESE SERVICES PROVIDED. IT IS THE APPEARANCE

OF THE PHYSICAL FACILITIES, EQUIPMENT, PERSONNEL AND

COMMUNICATION MATERIALS. IN THIS SURVEY, ON THE

QUESTIONNAIRE DESIGNED, THE CUSTOMERS RESPOND TO THE

QUESTIONS ABOUT THE PHYSICAL LAYOUT AND THE FACILITIES THAT

THE FIRM OFFERS TO ITS CUSTOMERS.

COST OF QUALITYCost of quality Cost of quality = Cost of conformance + Cost of non-

conformance

• Cost of conformance is the cost of providing products or services as per the required standards. This can be termed as good amount spent. (Prevention & Appraisal costs)

• Cost of non-conformance is the failure cost associated with a process not being operated to the requirements. This can be termed as unnecessary amount spent.( Internal & External failure costs)

DEFINITION OF COQ

Cost of quality is a methodology that

allows an organization to determine the

extent to which its resources are used

for activities that prevent poor quality,

that appraise the quality of the

organization’s products or services, and

that result from internal and external

failures. Having such information allows

an organization to determine the

potential savings to be gained by

implementing process improvements.

CATEGORIES OF COQCOST OF QUALITY

CONFORMANCE NON-CONFORMANCE

PREVENTION COST APPRAISAL COST INTERNAL FAILURE EXTERNAL FAILURE

PREVENTION COST“Prevention cost support activities

whose purpose is to reduce a number of defects”

The costs incurred to avoid or minimize the number of defects at first place are known as prevention

costs.The most effective way to manage

quality costs is to avoid having defects in the first place. Much

less costly to prevent a problem from ever happening than it is to find and correct the problem after

it has occurred.

EXAMPLES OF PREVENTION COSTMarket survey Quality Audit

Process control Process planning

Training andeducation

Design review

APPRAISAL COST “Appraisal costs support activities

categories whose purpose is to determine the of quality degree of

conformance to the quality requirements.”

Appraisal costs (also known as inspection costs) are those cost that are incurred to identify defective products before they are shipped to customers. All costs associated

with the activities that are performed during manufacturing processes to ensure required quality

standards are also included in this category. Identification of defective products involve the maintaining a team of inspectors. It may be very costly for some organizations.

EXAMPLES OF APPRAISAL COST

Internal auditDocument

review

Balancing

Equipmentcalibration

Laboratorytesting

Vendorsurveillance

INTERNAL FAILURE COST “ The costs of deficiencies discovered before delivery which are associated with the failure

(nonconformities) to meet explicit requirements or implicit needs of external or internal customers.”

Internal failure costs are those costs

that are incurred to remove defects

from the products before shipping them

to customers. Also include avoidable losses and

inefficiencies that occur even when

requirements and need are meet.

EXAMPLES OF INTERNAL FAILURE COSTSCRAP Excess inventory

Lost or missinginformation

Downtime

Rejection inmanufacturing

EXTERNAL FAILURE COST“ The costs associated with the deficiencies that is found after

product is received by the customer.”These are the costs incurred by a business due to failure of product or service at the customer end.

These costs results into warranty claims and loss of reputation.

It is also includes the lost opportunities for sales revenue.If defective products have been shipped to customers, external

failure costs arise.

EXAMPLES OF EXTERNAL FAILURE COST

Warranty costCustomer

dissatisfaction

Allowances Restockingcost

Other penalties

THE EVOLUTION OF TOTAL QUALITY MANAGEMENT

Total Quality Management (TQM) comprehensive and structured approach to organizational management that seeks to

improve the quality of products and services through ongoing refinements in response to

continuous feedback.

QUALITY GURUS & THEIR CONTRIBUTION

The quality GURUS have made a significant impact on the world through their contributions to improving not only business but all organizations including state & national government military organizations educational institutions health care organizations & many other establishments & organizations. There are main seven GURUS of Total Quality Management (TQM) which are as follows: Walter A. Shewhart W. Edwards Deming Dr. Joseph M. Juran Armand V. Feiganbaum Kaoru Ishikawa Philip B. Crosby Dr. Genichi Taguchi

WALTER A.SHEWART PHD. Spent his professional career at western electric & Bell Telephone laboratories. In 1931, he authored Economic control

of quality of manufactured product which is regarded as a complete & thorough work of basic principles of quality control.

WALTER A. SHEWHART

W. EDWARDS DEMINGSEdwards Deming, PHD, was a protégé of shewhart, in

1950, he taught statistical process control & the importance of quality to the leading CEOs of Japanese

industry, he is credited with providing foundation for the Japanese quality miracle & resurgence as an economic power. Deming is the best-known quality expert in the

world.There are four ideas of Deming which are as follows: Better design for products to improve services. Higher level of uniform product quality. Improvement of products testing in the workplace & in research centers. Greater sales through side (global) marketers.

JOSEPH M. JURANWorked at western electric from 1924 to 1941.Juran

traveled to japan in 1954 to teach quality management. The Juan trilogy for managing quality is carried out by three

interrelated processes.PLANNING

CONTROL

IMPRO

VEMENT

ARMAND V. FEIGANBAUMPHD argues that total quality control is necessary to achieve productivity, market penetration & competitive advantage. Quality begins by identifying the customer requirements

&ends with a product or service in the hands of a satisfied customer.

KAORU ISHIKAWAKaoru Ishikawa, studied under Deming, Juran & Feigenbaum. He borrowed the total quality control & adopted it for Japanese. He is best known for the development of Cause & Effect diagram which is sometime called an “Ishikawa Diagram” or “Fish Bone Diagram”. He was known for popularizing the seven basic tools of quality & philosophy of tool quality.

PHILIP B. CROSBYPhilip B. Crosby was the quality guru that developed the idea of “Quality is Free” which asserts that implementing quality improvement pays for

itself through the savings from the improvements, increased revenue from greater customer satisfaction & the improved competitive advantage that

results. He popularized “Zero Defects” to define the goal of a quality program as the elimination of all defects & not the education of defects to

an acceptable quality level.

GENICHI TAGUCHIDr. Genichi Taguchi developed his loss function concept that combines

cost target & variation into one metric because the loss function is reactive. He developed the signal to noise ratio as a proactive equivalent.

He developed the “Taguchi Methodology” of robust design which focused on making the design less sensitive to variation in the

manufacturing process, instead of trying to control manufacturing variation. This idea of “Designing in Quality” has become an important

tenant of six sigma today.

THE PHILOSOPHY OF TOTAL QUALITY MANAGEMENT

TQM PHILOSO

PHY

Customer focus

Continuous Improveme

nt

Product Design

Employee Empower

ment

The Philosophy of TQM is based on the following 4 components which are as follows:Customer FocusContinuous

ImprovementEmployee

EmpowermentProduct Design

CUSTOMER

FOCUSCustomer focus is an essential part of any successful business. And that focus has to be integral to the culture of the business, not bolted on. Customer service is a series of activities designed to deliver customer satisfaction. The process of providing customer satisfaction is based on an understanding of what customers want and need.

CONTINUOUS IMPROVEMENTContinuous improvement is an ongoing effort to improve products, services or processes. These efforts can seek “incremental” improvement over time or “breakthrough” improvement all at once.

PDSA CYCLEThe basic Plan- Do-Study-Act (PDSA) Cycle was developed by Shewart & then modified by Deming. This is a 4 step process which is stated as:STEP # 1:Plan carefully what is to be done.STEP # 2:Carry out the Plan (DO IT).STEP # 3:Study the results.STEP # 4:Act on the results by identifying what worked as planned & what didn’t.

EMPLOYEE EMPOWERMENTEmployee empowerment is giving employees a certain degree of autonomy and responsibility for decision-making regarding their specific organizational tasks. Employee empowerment should lead to increased organizational responsiveness to issues and problems.

Products are need to be designed to meet customer expectations. This means a company should structure all of its systems to create products and services that satisfy its customer base.

QUALITY AWARDS AND STANDARD

There are several quality

awards and standards that are

available for organizations to

access. The large majority of

organizations that use these

programs use them as tools to

help improve their quality

processes and move toward

implementing and successfully

practicing TQM.

The Malcolm Baldrige National Quality Award (MBNQA)

The Malcolm Baldrige National Quality Award was established in 1987 when Congress passed the

Malcolm Baldrige National Quality Improvement Act. The award is

named after the former Secretary of Commerce Malcolm Baldrige, and is intended to reward and stimulate

quality initiatives. It is designed to recognize companies that establish

and demonstrate high-quality standards and is given to no more

than two companies in each of three categories: manufacturing, service,

and small business.

MALCOLM BALDRIGE NATIONAL QUALITY AWARD

Malcolm Baldrige Quality Award Malcolm Balridge quality award symbolizes the highest standards of

total quality management. The award is evaluated on the basis of seven sections in attaining global quality

standards . These sections are:-•

1.Leadership2.Information and analysis

3.Strategic quality planning4.Human Resource development and management

5.Management of process quality6.Quality & operational result

7.Customer focus and satisfaction

DEMING PRIZEThe Deming Prize is a global quality award that recognizes both

individuals for their contributions to the field of Total Quality Management (TQM) and businesses that have successfully

implemented TQM.It is the oldest and most widely recognized quality award in the

world.

 It was established in 1951 to honor W. Edwards Deming who contributed greatly to Japan’s proliferation of statistical quality control after World War II.  His teachings helped Japan build its foundation by which the level of Japan’s product quality has been recognized as the highest in the world.

DEMING MEDAL The Deming Medal with Dr.

Deming’s side face image and

his word “THE RIGHT QUALITY &

UNIFORMITY ARE FOUNDATIONS

OF COMMERCE, PROSPERITY &

PEACE” engraved on it designed

by late Yoji Yamawaki, former

professor of the Tokyo National

University of Fine Arts and Music.

The medal is awarded to the

Deming Prize Winner.

ISOISO, founded in 1947, is a worldwide federation of

national standards bodies from some 100 countries, with one standards body representing

each member country. The American National Standards Institute (ANSI), for example, represents

the United States. Member organizations collaborate in the development and promotion of international standards. Among the standards the ISO fosters is Open Systems Interconnection (OSI),

a universal reference model for communication protocols. According to ISO, "ISO" is not an abbreviation. It is

a word, derived from the Greek isos, meaning "equal“

The name ISO is used around the world to denote the organization, thus avoiding the assortment of

abbreviations that would result from the translation of "International Organization for Standardization" into the different national

languages of members. Whatever the country, the short form of the organization's name is always

ISO.

ISO 9000 The ISO 9000 family of standards is related to

quality management systems and designed to help organizations ensure that they meet the needs of customers and other stakeholders while meeting

statutory and regulatory requirements

International standards promote international trade by providing one consistent set of

requirements recognized around the world.

 ISO 9000 can help a company satisfy its customers, meet regulatory requirements and achieve continual improvement. It provides the base level of a quality system, not a complete

guarantee of quality.  Originally published in 1987 by the International Organization for Standardization (ISO), a

specialized international agency for standardization composed of the national

standards bodies of 90 countries.

EIGHT QUALITY MANAGEMENT PRINCIPLES

STANDARDS UNDER ISO 9000 SERIES

ISO 9000

ISO 9001

ISO 9002

Explains fundamental quality concepts and provides guidelines for the selection and

application of each standard

Model for quality assurance in design, development, production, installation and

servicing

Model for quality assurance in the production and installation of

manufacturing systems

ISO 9003

ISO 9004

Quality assurance in final inspection and testing

Guidelines for the applications of standards in quality management and quality

systems.

ISO 9000 and ISO 9004 are guidance standards. They describe what is necessary to accomplish the requirements

outlined in standards 9001, 9002 or 9003.

ISO 14000ISO 14000 is a series of environmental management standards developed and published by the International Organization for

Standardization ( ISO ) for organizations. The ISO 14000 standards provide a guideline or framework for organizations that need to

systematize and improve their environmental management efforts. The ISO 14000 standards are not designed to aid the enforcement of environmental laws and do not regulate the environmental activities

of organizations. Adherence to these standards is voluntary.

STANDARDS UNDER ISO 14000 SERIESISO

14001

ISO 14020

ISO 14010

Is an EMS (environmental management system) standard.

Is about environmental labeling.

Series of standards are about Auditing.

ISO 14030

ISO 14040

Is standard on environmental performance evaluation.

Series are on environmental life cycle assessment (LCA).

TOTAL QUALITY MANAGEMENT ACROSS THE ORGANIZATION

TQM consists of organization-wide efforts to install &make permanent a climate in which an organization continuously improves its ability to deliver high products & services to

customer.

TOTAL QUALITY MANAGEMENT IN MARKETING

Porter’s 1985 description of the value chain of activities (processes or collection of processes) that

an organization performs in order to deliver a valuable product or service for the market

TQM IN FINANCE & ACCOUNTINGTQM is the solution for finance & accounting is to apply holistic thinking to finance applications. The primary measures for a TQM view of finance &

accounting are throughput operating expenses & investment. Throughput is calculated from sales minus “totally variable cost” where totally variable

cost is usually calculated as the cost of raw materials

TQM IN HRMHRM is a function of organization design to maximize employee performance in service of employee strategic objective. HR is primary concerned with the management of people with in organizations focusing on policies on systems. HRM covers these areas which are as follows:

Job design & analysis workforce planning recruitment & selection Training & development performance management Compensation (remuneration) & legal issues. TQM is the help of these areas to developed high quality

TQM IN INFORMATION TECHNOLOGY

Advance the business Information Technology over the years, have changed business processes within & between business

enterprises. In the 1960s operating system holds limited functionality & any workflow. The 1970s-1980s saw the

development of data driven approaches, as data storage & retrieval technologies improved. Data modeling rather than

process modeling was the starting point for system

CONCLUSIONTotal Quality Management

(TQM) is the art of managing the whole to achieve the

excellence. TQM integrates fundamental management

techniques, existing improvements efforts & technical tools under a disciplined approach

REFERENCESBOOKS Operation Management by R. Dan Reid & Nada R. Sanders

3rd Edition © Wiley 2007 Total quality Management by Dale H. Besterfield, Carol

Besterfield-Michna, Glen H. Besterfield & Mary Besterfield-Sacre

WEBSITES www.google.com www.wkipedia.com

www.bizmanualz.com

www.ukessays.com

www.workchron.com