TOTAL QUALITY MANAGEMNET

ASSIGNMENT QUESTION BANK (TOTAL MARKS: 100)

Note: 1) Attempt any 10 questions 2) All questions carry equal marks.

Q1. What do you mean by quality circle ? Explain the functioning of quality circles.

Ans A Quality Circle (QC) , also known as Quality Control Circle(QCC) is a volunteer group composed of workers who meet together to discuss workplace improvement, and make presentations to management with their ideas. Typical topics are improving safety, improving product design, and improvement in manufacturing process. Quality circles have the advantage of continuity, the circle remains intact from project to project.The philosophy is that everyone will take more interest and pride in their work if they have a share in the decision-making process or have a say in how their work should be conducted. Quality Circle gives employees greater satisfaction and motivation. Quality Circles aim to inculcate effective team dynamics through communication, trust, shared vision,commitment, involvement, empowerment, and a learning culture among the staff.

The concept of Quality Circle is primarily based upon recognition of the value of the worker as a human being, as someone who willingly activists on his job, his wisdom, intelligence, experience, attitude and feelings. It is based upon the human resource management considered as one of the key factors in the improvement of product quality & productivity. Quality Circle concept has three major attributes:

a. Quality Circle is a form of participation management.

b. Quality Circle is a human resource development technique.

c. Quality Circle is a problem solving technique.

Objectives Of Quality CirclesThe objective of Quality Circle is to improve and upgrade quality of work through:

(a) The problem solving capability of the workers;

(b) Team work;

(c) The cultivation and assimilation of positive values and work ethics;

(d) Involvement and interest in work;

(e) High motivation for work; and

(f) Awareness of responsibility towards oneself, the group, the department/office and the nation.

Basic Principles Of QCQuality Circle is based on the following basic principles;

(a) Workers are recognized as the most valuable resource along with other management resources;

(b) Development of workers as useful members of the department/officer;

(c) participation and support from all levels;

(d) Team-work;

(e) Constant encouragement of creativity; and

(f) The projects are related to daily work.

ORGANISATIONAL STRUCTURE

A Quality Circle has an appropriate organisational structure for its effective and efficient performance. It varies from industry to industry, organisation to organisation. But it is useful to have a basic framework as a model. The structure of a Quality Circle consists of the following elements.

1. Steering Committee: It is a group of people with representation from all functions in the organization, usually drawn from management levels, chartered to develop and monitor a quality improvement process in their own functions. This group is often responsible for deciding which improvement projects or work processes will be addressed and in what priority. It establishes policy, plans and directs the program and meets usually once in a month. The duties of the Quality Circles Steering Committee include the allocation of resources to Quality Circle training and their activities; decisions regarding the rate of development in the organization; accepting or rejecting the recommendations made by the Quality

Circle leader during their group presentations; the appointment of the Facilitator; and the relationship between Quality Circles and other groups.

2. Coordinator: He may be a Personnel or Administrative officer who co-ordinates and supervises the work of the facilitators and administers the programme.

3. Facilitator: Facilitators are chosen from among Heads of Divisions or workers selected by the Management. These facilitators are responsible for one or more QC. The roles of the facilitators are as follows:

(i) Communicating with all levels of management and obtaining their support and assistance;

(ii) Providing training to QC leaders and assisting in training of QC members where required;

(iii) Maintaining an open and supportive environment;

(iv) Ensuring QC members direct their activities to work-related problems;

(v) As a mediator in problem-solving;

(vi) As a resource person to the Circle; and

(vii) Evaluating the costs and benefits of the QC programme and reporting to the Management.

4. Circle leader: Leaders may be from lowest level workers or Supervisors. A Circle leader organizes and conducts Circle activities. The Quality Circle leader acts as default spokesperson for the team, he can calls and cancels meetings, he makes sure people are following through on commitments and also he proposes a process for approaching problems and improvement projects.

5. Circle members : They may be staff workers. Without circle members the porgramme cannot exist. They are the lifeblood of quality circles. They should attend all meetings as far as possible, offer suggestions and ideas, participate actively in group process, take training seriously with a receptive attitude.The roles of Steering Committee, Co-0rdinator, Facilitator, Circle leader and Circle members are well defined.

QC STRUCTURE

QCC Steering Committee | |

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Facilitator Facilitator | | | |

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Circle Circle Circle Circle Leaders Leaders Leaders Leaders

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Members

Process Of Operation

The operation of quality circles involves a set of sequential steps as under:

1. Problem identification: Identify a number of problems. 2. Problem selection : Decide the priority and select the problem to be taken up first. 3. Problem Analysis : Problem is clarified and analysed by basic problem solving methods. 4. Generate alternative solutions : Identify and evaluate causes and generate number of possible alternative solutions. 5. Select the most appropriate solution : Discuss and evaluate the alternative solutions by comparison in terms of investment and return from the investment. This enables to select the most appropriate solution.

6. Prepare plan of action : Prepare plan of action for converting the solution into reality which includes the considerations "who, what, when, where, why and how" of solving problems.

7. Present solution to management circle members present solution to management fore approval.

8. Implementation of solution : The management evaluates the recommended solution. Then it is tested and if successful, implemented on a full scale.

Benefits Of Quality Circles.

Numerous benefits can be obtained through the implementation ofQC. Among these are:

(a) Closer relationship between the workers and Management;

(b) Cultivation of cooperation among workers;

(c) Job satisfaction;

(d) Increased motivation to work;

(e) Building of self-confidence;

(f) Development of leadership among workers;

(g) Encouragement of creativity among workers; and

(h) Improvement of systems and work procedures..

CONCLUSION

The Quality Circle itself is a completely voluntary body. Nobody is paid to join, nobody is forced to join, and nobody is penalized for not taking part. The motivation is solely the desire to do a constructive job of' work and to find satisfaction in seeking the results of effort. The Quality Circle, once formed sets its own terms of reference; selects for itself the problems that it wishes to tackle; and in due course, presents its recommendations for their solution. In other words, it functions organically - according to its own perceived needs - rather than compulsively in response to externally determined criteria. It means that all people in an organisation must be regarded as caring responsible employees, who, given the opportunity and recognition will make contributions to the success of the organisation consistent with their sense of' responsibility and need for identification. This usually goes far beyond anything regarded as possible with incentive schemes and other carrot-and-stick methods.

Proper organization for quality is extremely important for successful implementation of quality management concepts. Quality Circles are not limited to manufacturing firms only. They are applicable for variety of organisations where there is scope for group based solution of work related problems. Quality Circles are relevant for factories, firms, schools, hospitals, universities, research institutes, banks, government offices etc.

Q.2 Explain the various levels of SEI-CMM in detail.

Ans The Software Engineering Institute (SEI) is an independent body in the US, which promotes advancement of software process technology. SEI has developed a framework called the Capability Maturity Model (CMM) to access the maturity of the software process capability of an organization and constantly improve it. The CMM categorizes software process maturity into five levels: from level 1 (the lowest) to level 5 (the highest). For each level, the CMM specifies some key process areas (KPA), which represent the areas on which an organization should focus if it wants to move to a particular level. Each Key Process Area is associated with goals that represent the requirements to be satisfied by the process for that Key Process Area. The Key Process Areas for different maturity levels can be used for assessing the capability of the existing process, as well as for identifying the areas that need to be strengthened so as to move the process from a lower level of maturity to a higher level.

The SEI's goals in developing CMMs include: Addressing software and disciplines that have an impact on software Providing integrated process improvement reference models Building broad community consensus Harmonizing with standards Enabling efficient improvement across disciplines

Structure of CMM

Maturity Levels A layered framework providing a progression to the discipline needed to engage in continuous improvement (It is important to state here that an organization develops the ability to assess the impact of a new practice, technology, or tool on their activity. Hence it is not a matter of adopting these, rather it is a matter of determining how innovative efforts influence existing practices. This really empowers projects, teams, and organizations by giving them the foundation to support reasoned choice.)

Key Process Areas Key process area (KPA) identifies a cluster of related activities that, when performed collectively, achieve a set of goals considered important.

Goals The goals of a key process area summarize the states that must exist for that key process area to have been implemented in an effective and lasting way. The extent to which the goals have been accomplished is an indicator of how much capability the organization has established at that maturity level. The goals signify the scope, boundaries, and intent of each key process area.

Common Features Common features include practices that implement and institutionalize a key process area. These five types of common features include: Commitment to Perform, Ability to Perform, Activities Performed, Measurement and Analysis, and Verifying Implementation.

Key Practices The key practices describe the elements of infrastructure and practice that contribute most effectively to the implementation and institutionalization of the key process areas.

Structure Of CMM

Level 1 - The Initial LevelAt the Initial Level, the organization typically does not provide a stable environment for developing and maintaining software. When an organization lacks sound management practices, the benefits of good software engineering practices are undermined by ineffective planning and reaction-driven commitment systems. During a crisis, projects typically abandon planned procedures and revert to coding and testing. Success depends entirely on having an exceptional manager and a seasoned and effective software team. Occasionally, capable and forceful software managers can withstand the pressures to take shortcuts in the software process; but when they leave the project, their stabilizing influence leaves with them. Even a strong engineering process cannot overcome the instability created by the absence of sound management practices. The software process capability of Level 1 organizations is unpredictable because the software process is constantly changed or modified as the work progresses (i.e., the process is ad hoc). Schedules, budgets, functionality, and product quality are generally unpredictable. Performance depends on the capabilities of individuals and varies with their innate skills, knowledge, and motivations. There are few stable software processes in evidence, and performance can be predicted only by individual rather than organizational capability.

Level 2 - The Repeatable LevelAt the Repeatable Level, policies for managing a software project and procedures to implement those policies are established. Planning and managing new projects is based on experience with similar projects. An objective in achieving Level 2 is to institutionalize effective management processes for software projects, which allow organizations to repeat successful practices developed on earlier projects, although the specific processes implemented by the projects may differ. An effective process can be characterized as practiced, documented, enforced, trained, measured, and able to improve. Projects in Level 2 organizations have installed basic software management controls. Realistic project commitments are based on the results observed on previous projects and on the requirements of the current project. The software managers for a project track software costs, schedules, and functionality; problems in meeting commitments are identified when they arise. Software requirements and the work products developed to satisfy them are baselined, and their integrity is controlled. Software project standards are defined, and the organization ensures they are faithfully followed. The software project works with its subcontractors, if any, to establish a strong customer-supplier relationship.The software process capability of Level 2 organizations can be summarized as disciplined because planning and tracking of the software project is stable and earlier successes can be repeated. The project's process is under the effective control of a project management system, following realistic plans based on the performance of previous projects.

Level 3 - The Defined LevelAt the Defined Level, the standard process for developing and maintaining software across the organization is documented, including both software engineering and management processes, and these processes are integrated into a coherent whole. This standard process is referred to throughout the CMM as the organization's standard software process. Processes established at Level 3 are used (and changed, as appropriate) to help the software managers and technical staff perform more effectively. The organization exploits effective software engineering practices when standardizing its software processes. There is a group that is responsible for the organization's software process activities, e.g., a software engineering process group, or SEPG [Fowler90]. An organization-wide training program is implemented to ensure that the staff and managers have the knowledge and skills required to fulfill their assigned roles.

Projects tailor the organization's standard software process to develop their own defined software process, which accounts for the unique characteristics of the project. This tailored process is referred to in the CMM as the project's defined software process. A defined software process contains a coherent, integrated set of well-defined software engineering and management processes. A well-defined process can be characterized as including readiness criteria, inputs, standards and procedures for performing the work, verification mechanisms (such as peer reviews), outputs, and completion criteria.

Because the software process is well defined, management has good insight into technical progress on all projects. The software process capability of Level 3 organizations can be summarized as standard and consistent because both software engineering and management activities are stable and repeatable. Within established product lines, cost, schedule, and functionality are under control, and software quality is tracked. This process capability is based on a common, organization-wide understanding of the activities, roles, and responsibilities in a defined software process.

Level 4 - The Managed LevelAt the Managed Level, the organization sets quantitative quality goals for both software products and processes. Productivity and quality are measured for important software process activities across all projects as part of an organizational measurement program. An organization-wide software process database is used to collect and analyze the data available from the projects' defined software processes. Software processes are instrumented with well-defined and consistent measurements at Level 4. These measurements establish the quantitative foundation for evaluating the projects' software processes and products. Projects achieve control over their products and processes by narrowing the variation in their process performance to fall within acceptable quantitative boundaries. Meaningful variations in process performance can be distinguished from random variation (noise),

particularly within established product lines. The risks involved in moving up the learning curve of a new application domain are known and carefully managed. The software process capability of Level 4 organizations can be summarized as predictable because the process is measured and operates within measurable limits. This level of process capability allows an organization to predict trends in process and product quality within the quantitative bounds of these limits. When these limits are exceeded, action is taken to correct the situation. Software products are of predictably high quality.

Level 5 - The Optimizing LevelAt the Optimizing Level, the entire organization is focused on continuous process improvement. The organization has the means to identify weaknesses and strengthen the process proactively, with the goal of preventing the occurrence of defects. Data on the effectiveness of the software process is used to perform cost benefit analyses of new technologies and proposed changes to the organization's software process. Innovations that exploit the best software engineering practices are identified and transferred throughout the organization. Software project teams in Level 5 organizations analyze defects to determine their causes. Software processes are evaluated to prevent known types of defects from recurring, and lessons learned are disseminated to other projects. The software process capability of Level 5 organizations can be characterized as continuously improving because Level 5 organizations are continuously striving to improve the range of their process capability, thereby improving the process performance of their projects. Improvement occurs both by incremental advancements in the existing process and by innovations using new technologies and methods.

The Key Process Areas of the CMM

Figure 1 The Key Process Areas by Maturity Level Figure 1 lists the key process areas for each maturity level in the CMM. Each key process area identifies a cluster of related activities that, when performed collectively, achieve a set of goals considered important for enhancing process capability. The key process areas have been defined to reside at a single maturity level. The key process areas are building blocks that indicate the areas an organization should focus on to improve its software process. Key process areas identify the issues that must be addressed to achieve a maturity level.

The key process areas at Level 2 focus on the software project's concerns related to establishing basic project management controls. Descriptions of each of the key process areas for Level 2 are given below:

The purpose of Requirements Management is to establish a common understanding between the customer and the software project of the customer's requirements that will be addressed by the software project. This agreement with the customer is the basis for planning and managing the software project. Control of the relationship with the customer depends on following an effective change control process .

The purpose of Software Project Planning is to establish reasonable plans for performing the software engineering and for managing the software project. These plans are the necessary foundation for managing the software project . Without realistic plans, effective project management cannot be implemented.

The purpose of Software Project Tracking and Oversight is to establish adequate visibility into actual progress so that management can take effective actions when the software project's performance deviates significantly from the software plans.

The purpose of Software Subcontract Management is to select qualified software subcontractors and manage them effectively. It combines the concerns of Requirements Management, Software Project Planning, and Software Project Tracking and Oversight for basic management control, along with necessary coordination of Software Quality Assurance and Software Configuration Management, and applies this control to the subcontractor as appropriate.

The purpose of Software Quality Assurance is to provide management with appropriate visibility into the process being used by the software project and of the products being built. Software Quality Assurance is an integral part of most software engineering and management processes.

The purpose of Software Configuration Management is to establish and maintain the integrity of the products of the software project throughout the project's software life cycle. Software Configuration Management is an integral part of most software engineering and management processes.

The key process areas at Level 3 address both project and organizational issues, as the organization establishes an infrastructure that institutionalizes effective software engineering and management processes across all projects. Descriptions of each of the key process areas for Level 3 are given below:

The purpose of Organization Process Focus is to establish the organizational responsibility for software process activities that improve the organization's overall software process capability. The primary result of the Organization Process Focus activities is a set of software process assets, which are described in Organization Process Definition. These assets are used by the software projects, as is described in Integrated Software Management.

The purpose of Organization Process Definition is to develop and maintain a usable set of software process assets that improve process performance across the projects and provide a basis for cumulative, long-term benefits to the organization. These assets provide a stable foundation that can be institutionalized via mechanisms such as training, which is described in Training Program.

The purpose of Training Program is to develop the skills and knowledge of individuals so they can perform their roles effectively and efficiently. Training is an organizational responsibility, but the software projects should identify their needed skills and provide the necessary training when the project's needs are unique.

The purpose of Integrated Software Management is to integrate the software engineering and management activities into a coherent, defined software process that is tailored from the organization's standard software process and related process assets, which are described in Organization Process Definition. This tailoring is based on the business environment and technical needs of the project, as described in Software Product Engineering. Integrated Software Management evolves from Software Project Planning and Software Project Tracking and Oversight at Level 2.

The purpose of Software Product Engineering is to consistently perform a well-defined engineering process that integrates all the software engineering activities to produce correct, consistent software products effectively and efficiently. Software Product Engineering describes the technical activities of the project, e.g., requirements analysis, design, code, and test.

The purpose of Intergroup Coordination is to establish a means for the software engineering group to participate actively with the other engineering groups so the project is better able to satisfy the customer's needs effectively and efficiently. Intergroup Coordination is the interdisciplinary aspect of Integrated Software Management that extends beyond software engineering; not only should the software process be integrated, but the software engineering group's interactions with other groups must be coordinated and controlled.

The purpose of Peer Reviews is to remove defects from the software work products early and efficiently. An important corollary effect is to develop a better understanding of the software work products and of the defects that can be prevented. The peer review is an important and effective engineering method that is called out in Software Product Engineering and that can be implemented via Fagan-style inspections , structured walk throughs, or a number of other collegial review methods .

The key process areas at Level 4 focus on establishing a quantitative understanding of both the software process and the software work products being built. The two key process areas at this level, Quantitative Process Management and Software Quality Management, are highly interdependent, as is described below:

The purpose of Quantitative Process Management is to control the process performance of the software project quantitatively. Software process performance represents the actual results achieved from following a software process. The focus is on identifying special causes of variation within a measurably stable process and correcting, as appropriate, the circumstances that drove the transient variation to occur. Quantitative Process Management adds a comprehensive measurement program to the practices of Organization Process Definition, Integrated Software Management, Intergroup Coordination, and Peer Reviews.

The purpose of Software Quality Management is to develop a quantitative understanding of the quality of the project's software products and achieve specific quality goals. Software Quality Management applies a comprehensive

measurement program to the software work products described in Software Product Engineering.

The key process areas at Level 5 cover the issues that both the organization and the projects must address to implement continuous and measurable software process improvement. Descriptions of each of the key process areas for Level 5 are given below:

The purpose of Defect Prevention is to identify the causes of defects and prevent them from recurring. The software project analyzes defects, identifies their causes, and changes its defined software process, as is described in Integrated Software Management. Process changes of general value are transitioned to other software projects, as is described in Process Change Management.

The purpose of Technology Change Management is to identify beneficial new technologies (i.e., tools, methods, and processes) and transfer them into the organization in an orderly manner, as is described in Process Change Management. The focus of Technology Change Management is on performing innovation efficiently in an ever-changing world.

The purpose of Process Change Management is to continually improve the software processes used in the organization with the intent of improving software quality, increasing productivity, and decreasing the cycle time for product development. Process Change Management takes the incremental improvements of Defect Prevention and the innovative improvements of Technology Change Management and makes them available to the entire organization.

Q3. Explain the service quality model and various service quality dimensions.

Ans. The PZB model or `gap theory' drawn up by Parasuraman et al. (1985) is a straightforward and appropriate way of identifying quality differences between providers and consumers. There are five possible service gaps that can exist, all of which are illustrated in Figure 1 below. This study focused on the fifth gap, which can occur between customer's expectation and the perceived service. The expected service is based to a large degree on what consumers' know already, word of mouth and past experiences. A goal of an organization should be to close this ‘gap’ between expectations and perceptions. Considerations of service quality provide the foundation to the Gaps approach to service marketing. A critical point to understand in relation to this is that the perception of quality is held in the mind of the consumer. It is not appropriate for the service provider to believe it can set the level of service quality based on its assumptions about consumer perceptions. The Gaps Model identifies five key areas for the diagnosis of gaps in service quality:

Gap 1 – The Expectations Gap – not knowing what customers expect; Gap 2 – The Design and Specifications Gap – not selecting the right service

designs and standards; Gap 3 – The Service Delivery Gap – not delivering to service standards;

Gap 4 – The Communication Gap – not matching performance to promises;

Gap 5 – The discrepancy between customers' expectations of the service and their perceptions of the service performance

Gap 1 – The Expectations Gap This gap relates to the difference between customer expectations of service quality and a company’s understanding of those expectations. Gap 1 may stem from any combination of the following factors:

Lack of marketing research orientation within the organization. This occurs when managers fail to make an effort to understand customers’ needs either through lack of formal or informal information gathering activities. Formal market research activities may help managers focus on gathering data about service quality issues and from that data, gain an understanding of which features are most important to customers, which levels of these features customers expect, and what customers think the company can and should do when service delivery problems occur.

Inadequate use of research findings. This is a common problem because managers may be too busy with day-to-day operations to interpret and/or utilize the data in a meaningful way.

Infrequent management interaction with customers. This problem can be addressed by having managers participate in the most basic of marketing research activities: mingling with customers to learn what they are really thinking. One formal mechanism to address this is to rotate managers periodically through the front-line.

Inadequate upward communication. Gaps in service also occur when top management fails to seek, stimulate and facilitate the flow of information from employees at lower levels. These employees are often the most valuable source of real and relevant information about customer service. Related to this, Gap 1 may also occur when too many levels separate top managers, who make critical decisions, from those responsible for dealing with and serving customers.

Gap 2 – The Design and Specifications Gap Gap 2 can arise through poor service design and a lack of customer-defined standards for processes. This emphasizes the need to understand customer perceptions so that service designs and standards are set at levels that reflect customer requirements. This gap will include considerations of the environment in which the service is delivered.

Gap 3 – The Service Delivery Gap Gap 3 might be described as the ‘people gap’. Not delivering agreed service standards can be caused through employees not meeting the required standards due to a range of HR-related issues including recruitment, inappropriate support and reward systems and a lack of empowerment and teamwork. Gap 3 is frequently the most difficult gap to close.

Intermediaries can also have an adverse impact on service quality for a variety of reasons including channel conflict, poor central quality control and issues regarding costs and rewards. This is why franchisers will generally have strict quality standards and monitoring processes to ensure franchisees deliver services to the required quality standards.

Customers too have impact upon service quality. If they are unaware of the role they are expected to play in service delivery (for example, preparatory work in advance of attending a training course), they are more likely to find fault with the service. Similarly, customers will expect to receive goods and services when they want them (for example, the provision of ‘just in time’ training to meet immediate learning requirements), and not have to wait due to poor capacity management.

Gap 4 – The Communication Gap Gap 4 can arise through a lack of integration and consistency in internal and external communications and through over-promising in communications and personal selling. If a customer is promised specific product or service features and benefits that are not delivered, there is clearly a difference between promise and performance

The Gaps Model provides a comprehensive diagnostic approach to evaluating the quality of an organization’s service delivery that builds upon the elements of the service marketing mix. However, further consideration of service quality introduces routes to evaluating customer expectations and perceptions of services.

Measuring service quality Gaps Model is the recognition that customers do not perceive service quality as a one-dimensional concept. Five dimensions of assessment for service quality have been identified. Sometimes customers will use all of the dimensions to determine service quality perceptions, and at other times any possible permutation of the dimensions. The five dimensions of service quality, as identified by Parasuraman, Zeithaml and Berry are:

1. Reliability – Performing the promised service dependably and accurately. Reliability has strong implications for brand perceptions due to the importance of producing the ‘brand experience’ consistently on repeated occasions.

2. Responsiveness – Helping customers and providing prompt service.

3. Assurance – Employees’ knowledge and courtesy and their ability to inspire trust and confidence in the customer. This dimension is likely to be particularly important for services where customers perceive purchases as involving high risk and/or where they feel uncertain about their ability to evaluate outcomes.

4. Empathy – The caring, individualized attention provided by employees to customers, whether face-to-face, by telephone, letter or online.

5. Tangibles – The appearance of an organization’s physical facilities, equipment, people and published materials.

The five dimensions of service quality in relation to service delivery can be measured through the SERVQUAL instrument or questionnaire, where the gaps between customer perceptions and expectations of service quality can be measured and related to the five dimensions. The SERVQUAL approach is still used in research relating to service quality, as are adaptations of it.

Conclusion

Gaps can be found in any process of an organization’s operations. Tools like SERVQUAL, Two-Dimensional Analysis, and ISO 9001 2000 can all be used to perform gap analysis. Gap Analysis is one of the best procedures to help lead a company to not only improve their processes, but recognize which processes are in need of improvement.

Q.4 What are the various clauses of IS0 9001:2000 ? Explain Product realization clause in detail.

Ans. ISO 9001:2000 specifies requirements for a quality management system where an organization:

i. needs to demonstrate its ability to consistently provide product that meets customer and applicable regulatory requirements, and

ii. aims to enhance customer satisfaction through the effective application of the system, including processes for continual improvement of the system and the assurance of conformity to customer and applicable regulatory requirements.

All requirements of this International Standard are generic and are intended to be applicable to all organizations, regardless of type, size and product provided.

Scope of ISO 9001-2000ISO 9001-2000 specifies requirements for a quality management system when an organization needs to demonstrate its ability to consistently provide products that meet the requirements of customers and regulatory agencies. It also addresses customer satisfaction through the requirements for continual improvement and the prevention of nonconformities.

Quality Management System RequirementsISO 9001-2000 begins with an introduction containing a general clause followed by a clause describing the process approach to quality management including its relationship to the familiar "plan, do, check, act" concept. This is followed by a discussion of the relationship of ISO 9001 and 9004 and other management system standards, specifically the ISO 14001 standard. The introduction is followed by Clause 1, Scope. This includes a clause on application of the standard including some comments regarding requirements that may be deleted in some situations.

The next two clauses are "Normative References" and "Terms and Definitions." Clause 4 of ISO 9001-2000 presents some general requirements of the quality management system. These include requirements for the identification and management of the processes in the system. General documentation requirements are also discussed in this clause. These include requirements for documented procedures, work instructions, manuals, and records and the control of these documents. This clause uses the verb "shall" for the first time, indicating a requirement, on the first line of Subclause 4.1. The use of this verb occurs eleven times in this clause and a total of 140 times in the standard.

The actual, detailed requirements of the standard are stated in the next four clauses entitled:

Management Responsibility

Resource Management

Product Realization

Measurement, Analysis and Improvement

The requirements found in each of these clauses will be discussed briefly.

4.1 Management Responsibility Clause 5 of the standard is entitled "Management Responsibility." It designates a requirement for a highly visible management commitment to high quality. This is done by the establishment of a quality policy, the setting of quality objectives, and the establishment of a quality system that emphasizes problem prevention rather than dependence on detection after a problem occurs. Management must develop and state its corporate policy as it relates to quality. This policy must be consistent with all other corporate policies. It is the responsibility of management to ensure that its quality policy is understood, implemented, and maintained. The policy contains management's definition of good quality and its goals for quality improvement.

Quality objectives must be explicitly stated. These include the key elements of quality such as fitness for use, performance, safety, and reliability.

Management's responsibilities also include the organization and operation of the quality system. They are responsible for ensuring that the quality system functions in such a manner that the system is understood and effective. Confidence must be provided that products and services satisfy customer expectations.

This clause also requires the appointment of a management representative charged with the operation and maintenance of the quality system. This person must have direct access to top management. Top management shall review the quality management system at prescribed intervals to ensure its continuing effectiveness. These reviews shall include results of internal and external audits, customer feedback, process performance, status of corrective and preventive actions, and any changes that could affect the quality management system. Output of these reviews shall include actions related to quality improvement and resource needs.

Strong points of this clause include the formulation and dissemination of a quality policy by top management with dissemination to all levels of the organization, the identification of authority for all work affecting quality, and management's review of the system. On the negative side, although on the surface it might seem beneficial to appoint a management representative, it promotes the quality sins of the past by encouraging management to delegate the quality function. This is in contrast to the lessons learned in the evolution to total quality: that top management leadership is essential to achieve long-lasting and significant benefits in quality management.

4.2 Resource Management Clause 6 of the standard requires the provision of resources needed to maintain the quality management system. These include human resources, requiring the identification of competency needs for personnel, the provision of training to satisfy these needs, evaluation of the effectiveness of this training, and the maintenance of appropriate records of education, training, and qualifications of all personnel. There is also a requirement for the maintenance of a proper infrastructure and work environment.

4.3 Product Realization The last two clauses, 7 and 8, are large and contain a number of subclauses. The first subclause of Clause 7 deals with quality planning. This requires a statement of the quality objectives for the product or service and the processes needed. These plans are to be recorded in the form of quality plans, and they include any inspection or tests needed to verify the product quality. The second subclause, 7.2, requires the organization to determine all customer requirements. These include requirements for availability, delivery, and support as well as those not specified by the customer but necessary for the intended use of the product. The organization is also required to review product requirements before a commitment to produce a product to ensure that the organization is able to meet those requirements.

Clause 7.3 deals with the design and development of a product or service. An appropriate planning activity is required that controls the entire design process. Design input states that input must be defined and documented including all functional, regulatory, and legal requirements. The organization must document that knowledge from prior designs is used when it is available. Design output shall be in a form that makes verification against design input feasible. The output must include necessary requirements for production operations, address product acceptance criteria, and explain how the product may be used safely and correctly. The output documents must be approved before release for production.

The design clause requires reviews at appropriate stages using a review team made up of representatives of all functions associated with the product. There must be a verification stage during which the output is matched with the design input. There must also be a design validation stage during which the final product's performance is compared to requirements. Finally, all design changes must be documented and controlled.

Clause 7.4 covers the control of the purchasing function to ensure that the purchased product meets the specified requirements. Criteria for the selection and periodic evaluation of suppliers shall be defined, and results shall be recorded. The organization shall document and implement all activities necessary for the verification of purchased product. A negative aspect of this clause is that single sourcing of material as suggested in Deming's fourth point to management (see section 2-4.1) is ignored.

Clause 7.5 is entitled "Production and Service Operations." The first subclause in the section requires the control of operations relevant to production and services. This is done by making available information including specifications, work instructions,

devices needed for measuring and monitoring, and instructions for release and postdelivery activities. The second subclause concerns the validation of special processes. These include any processes in which deficiencies become apparent only after the product is in use or the service has been provided. The third subclause requires the product to be identified and traceable throughout production. Clause 7.5.4 requires the organization to protect and control any customer-owned property. This includes customer-owned tooling, shipping containers, and intellectual property that may be provided in confidence. The last subclause, 7.5.5, requires the preservation of the product during internal processing and delivery to the final destination.

Clause 7.6 deals with the control of measuring and monitoring devices. These devices must be controlled, serviced and calibrated at regular intervals, and protected from damage. The results of calibration must be recorded, and corrective action must be taken if a device is found to be out of calibration, including the reassessment of any previous test results. Calibration is to be against national or international standards if they exist. If they do not exist, the basis for calibration must be documented. Any computer software that is used in monitoring or measuring shall be placed under configuration management. ISO 10012 is referenced in this section for guidance purposes.

4.4 Measurement, Analysis, and Improvement Clause 8 contains five subclauses, the first of which, 8.1, is a general clause indicating that the organization must define, plan, and implement the measuring and monitoring activities needed to ensure conformity and product improvement. The second clause, 8.2, is entitled "Monitoring and Measurement." It requires the organization to measure customer satisfaction and conduct internal audits at regular intervals to ensure that the quality management system conforms to its own requirements and those of ISO 9001 and is effectively implemented and maintained. The subclause also requires the organization to measure and monitor all processes and products. The requirement for internal audits has been claimed by many users of the standard to be one of its strong points. Internal quality audits should do the following:

Verify compliance with the organization's quality policy

Determine the effectiveness of the quality management system

Be scheduled with reasonable frequency

Have documented procedures

Involve follow-up actions

Document results

Be brought to the attention of management (of the process audited)

Generate timely corrective actions on any deficiencies that are found

Reference is made to ISO 19011 for guidance in operating the internal auditing process.

Clause 8.3 covers control of nonconforming product. This is a requirement to identify and control any product that is nonconforming and to take appropriate action to see that it does not reach the customer. It also requires the organization to take appropriate action to see that the problem causing the nonconformities is corrected. The next subclause requires data dealing with the quality system to be collected and analyzed. These data include customer satisfaction, conformance to requirements, characteristics of processes, and suppliers.

Clause 8.5 requires the organization to plan for continual improvement "through the use of the quality policy, quality objectives, audit results, analysis of data, corrective and preventive actions, and management review." The last two subclauses in this clause are entitled corrective action and preventive action. These two requirements were a single clause in the 1994 edition of the standard. This caused some confusion among users of the standard as to the difference between them. Corrective action includes the correction of problems that have occurred, whereas preventive action deals with potential problems that may never have occurred.

Model of the process approach of ISO9001

The ‘core’ of ISO 9001:2000, Product RealisationClause 7 of ISO 9001:2000 contains the core processes that most organisations carry out. Any clause or sub-clause in section 7 can be excluded from an organisations quality management system if it can be justifiably excluded. Examples of common exclusions are clause 7.3 design and development, clause 7.5.3 traceability and clause 7.6 the control of monitoring and measuring devices. Clauses can only be excluded if their exclusion does not affect the company’s ability to provide a product or service that meets customer requirements. These core processes should be managed and controlled via the quality management system, and are evaluated for effectiveness and suitability by the internal audits with feed back into the management review.

This is a clear demonstration of one of the key principles of ISO 9001:2000, continuous improvement by critical self-evaluation. The output from the self-evaluation is fed into a planning stage to determine actions needed to improve the system. Following the planning and consultation comes the action phase where the proposed changes are implemented. Then the cycle starts again by checking that the changes are effective and meaningful by self-evaluation.

The sub-clauses of product realization (7) are:

Planning of product realization (7.1). Customer related proceses with sub-sub-clauses as: determination of

requirements related to the product (7.2.1), review of requirements related to the product (7.5.2) and customer communication (7.5.3).

Design and development (7.3) with sub-sub-clauses as: design and development planning (7.3.1), design and development inputs (7.3.2), design and development outputs (7.3.3), design and development review (7.3.4), design and development validation (7.3.6), and control of design and development changes (7.3.7).

Purchasing (7.4) with sub-sub-clauses as: purchasing process (7.4.1), purchasing information (7.4.2) and verification of purchased product (7.4.3).

Product and service provision with sub-sub-clauses as: control of production and service provision (7.5.1), validation of processes for production and service function (7.5.2), identification and traceability (7.5.3), customer property (7.5.4) and preservation of product(7.5.5).

Control of monitoring and measuring devices (7.6).

Q5. Discuss the importance of Leadership and culture for effective TQM implementation in the organizations.

Ans. Leadership and TQM

TQM is an approach to improving the competitiveness, effectiveness and flexibility of an organisation for the benefit of all stakeholders. It is a way of planning, organising and understanding each activity, and of removing all the wasted effort and energy that is routinely spent in organisations. It ensures the leaders adopt a strategic overview of quality and focus on prevention not detection of problems. Whilst it must involve everyone, to be successful, it must start at the top with the leaders of the organisation. All senior managers must demonstrate their seriousness and commitment to quality, and middle managers must, as well as demonstrating their commitment, ensure they communicate the principles, strategies and benefits to the people for whom they have responsibility. Only then will the right attitudes spread throughout the organisation.A fundamental requirement is a sound quality policy, supported by plans and facilities to implement it. Leaders must take responsibility for preparing, reviewing and monitoring the policy, plus take part in regular improvements of it and ensure it is understood at all levels of the organisation.Effective leadership starts with the development of a mission statement, followed by a strategy, which is translated into action plans down through the organisation. These, combined with a TQM approach, should result in a quality organisation, with satisfied customers and good business results. The 5 requirements for effective leadership are:

Developing and publishing corporate beliefs, values and objectives, often as a mission statement

Personal involvement and acting as role models for a culture of total quality

Developing clear and effective strategies and supporting plans for achieving the mission and objectives

Reviewing and improving the management system

Communicating, motivating and supporting people and encouraging effective employee participation

Leadership can be defined as a process by which people are imaginatively directed, guided, and influenced in choosing and attaining goals. It is helpful to look at leadership in an organizational setting as a behavior, as something one person does to influence others . leadership is the process by which one person influences others to do something voluntarily rather than out of fear or as a result of coercion. This voluntary aspect is different from other processes such as influence by authority or power. The concept of leadership is of great importance because every organization is

concerned with attracting and developing people who will be effective leaders. Leadership plays an important role in organizational life. It serves many areas not covered by organizational design or manuals by providing greater organizational flexibility, facilitating coordination and personal needs satisfaction, and ultimately making the difference between an effective and an ineffective organization.

It is possibly the most important element in TQM. It appears everywhere in organization. Leadership in TQM requires the manager to provide an inspiring vision, make strategic directions that are understood by all and to instill values that guide subordinates. For TQM to be successful in the business, the supervisor must be committed in leading his employees. A supervisor must understand TQM, believe in it and then demonstrate their belief and commitment through their daily practices of TQM. The supervisor makes sure that strategies, philosophies, values and goals are transmitted down through out the organization to provide focus, clarity and direction. A key point is that TQM has to be introduced and led by top management. Commitment and personal involvement is required from top management in creating and deploying clear quality values and goals consistent with the objectives of the company and in creating and deploying well defined systems, methods and performance measures for achieving those goals.

Culture and TQM

The successful implementation of the Total Quality Management approach is closely related to the review and change of the existing organizational culture. Organizational culture, a concept without a clear definition, is difficult to describe. According to Schein, organizational culture includes a collection of consciously or unconsciously shared ideas, assumptions, and convictions regarding those aspects of reality that are relevant to the organization. He rightly considers the organizational culture to elicit a learning process that gives direction to employee behavior. The organizational culture prescribes which behavior is acceptable, correct, or preferable. It includes what is visible from the outside and the values behind it. Organizational culture also involves the shared behavior of employees with regard to the job, organization, and relationship with, for instance, customers, suppliers, and colleagues. It can be described as the total of shared opinions, ideas, fundamental values, rules, customs, traditions, manners, behavioral patterns, and norms of the people in the organization.

The organizational culture assists in fulfilling the following important functions :

Internal integration:

Alignment and coordination of internal processes.

Streamlining and focusing the manner of cooperation.

Giving meaning and justification for one's own behavior.

Strengthening the we-feeling.

Reducing individual insecurity and fear.

Providing stability, certainty, and security.

Utilizing mutual competition.

External adjustment:

Aligning, sensing, and anticipating surrounding developments.

Identifying with organization goals.

Providing continuity by emphasizing the norms and values that make the organization prepared for survival.

Besides the functions mentioned before, organizational culture also influences motivation, self-guidance, and commitment. It plays an important role in the organization's development because it influences human action within an organization. The organizational culture is expressed in, for instance: the nature of people (good, bad, active, passive, how knowledge is interpreted, customer orientation, respect for the individual, performance focus); the nature of personal relations (teamwork, solidarity, dispute, competition); management style (task-oriented, dominant, human-oriented); formal statements (such as mission and vision statements); organizational structure (bureaucratic or self-guiding teams); HRM policy (such as coaching, appraisal, competence development); communication system (formal, informal, open communication); specific regulations (rules, guidelines, procedures); and organizational traditions. The values and behaviors associated with organization improvement—becoming more customer-oriented, becoming more efficient, cutting costs, becoming more team-oriented, thinking globally—are all aspects of the culture.

A successful culture has several specific characteristics:

1. A successful culture fosters employee development and encourages employees to maximally impact the organization. The culture has programs and processes to help employees take more initiative, set more challenging goals, be more innovative, become better leaders and managers, and in general take more responsibility for the success of their work unit as well as for the organization as whole.

2. The culture provides an avenue for highly competent employees to exercise their talents and impact the organization. If an employee comes up with a good idea to improve production, it will be implemented, and the employee will be recognized for the contribution.

3. The culture creates a work environment in which employees are engaged, challenged, and motivated. Leaders take responsibility for hiring and developing managers who motivate their subordinates. They structure jobs and teams in ways that keep employees stimulated and help them improve their skills and abilities. Work is a source of pride for employees.

4. The culture’s systems of compensation and recognition reward employees for their performance and their contribution to the organization’s success. Compensation may be financial, but it may include other rewards that for many people are at least as important. These rewards include recognition and acknowledgment of their contributions; leadership opportunities; training and development that improve competence; and work opportunities that are challenging, stimulating, and important to the organization. If employees significantly impact the organization and are not rewarded for that impact, expect them to go to other organizations where they will feel more appreciated.

ConclusionTQM can be a powerful technique for unleashing employee creativity and potential, reducing bureaucracy and costs, and improving service to clients and the community. Leadership styles and organizational culture must be congruent with TQM. If they are not, this should be worked on or TQM implementation should be avoided or delayed until favorable conditions exist.

Q6. What are the various tools and techniques used for TQM implementation.

Ans. Total Quality Management (TQM) is a systematic approach to quality improvement that marries product and service specifications to customer performance. TQM then aims to produce these specifications with zero defects. This creates a virtuous cycle of continuous improvement that boosts production, customer satisfaction and profits. In the current competitive world, most companies focus on Total Quality Management (TQM). For a company to remain competitive, quality must remain a priority. To assess the business’s quality health, various tools such as histogram, control chart, or Run chart etc are used. Total quality management (TQM) tools help organizations to identify, analyze and assess qualitative and quantitative data that is relevant to their business. These tools can identify procedures, ideas, statistics, cause and effect concerns and other issues relevant to their organizations.These tools can be classified under various groups. They are:

1. Data collection tools, such as tally charts, run charts.2. Process monitoring and control tools, such as control charts.3. Data analysis or presentation tools, such as Histograms, Pareto analysis diagram,

Flow charts.4. Problem solving tools, such as Brainstorming, Ishikawa (Fishbone) diagram,

group problem solving (7 or 8 discipline method).5. Prevention tools, such as brainstorming followed by the failure mode and effect

analysis.6. Improvement tools such as Benchmarking, project by project improvement with

management by objectives method.

Group1: Data Collection Tools

Tally sheetThe tally sheet is the simplest form of data collection. Each occurrence of some event or situation is tallied as it happens or is detected. The example in Figure 5.4 depicts a collection of data for defects detected in several modules of software being reviewed. Note that this is merely a collection of detected-defects data. Taken by itself, the collection gives little or no information about the modules beyond pure defect counts. It is usually beneficial to chart or graph the numbers for comparison.

Figure 5.4: Tally sheet.

Run ChartRun Chart is a display of data in the order that they occur. Run charts display process variation and can be used to indicate special causes of process variation in the form of trends, shifts, or other non-random patterns. It follows a process over a specific period of time, such as accrual rates, to track high and low points in its run, and ultimately identify trends, shifts and patterns.

Group 2: Process Mon itorin g Tools

Control ChartsControl charts are a method of Statistical Process Control, SPC. (Control system for production processes). They enable the control of distribution of variation rather than attempting to control each individual variation. Upper and lower control and tolerance limits are calculated for a process and sampled measures are regularly plotted about a central line between the two sets of limits. The plotted line corresponds to the stability/trend of the process. Action can be taken based on trend rather than on individual variation. This prevents over-correction/compensation for random variation, which would lead to many rejects.

Steps for constructing a Control Chart:

1. Determine what you want to measure and monitor with time.

2. Decide a time interval to take readings and plot this on the horizontal axis.

3. Control limits are calculated using the mean (X-bar) and the standard deviation of the observations. X-bar = Total of all the readings divided by the number of readings recorded. The standard deviation is a measure of the dispersion of the readings around an average value. Normally the Upper control limit (UCL) is 3 times the standard deviation above the mean and Lower control limit is 3 times the standard deviation below the mean value. These points are plotted on the vertical axis and horizontal lines are drawn from these points, parallel to each other.

4. Go on entering the data points on this chart at regular intervals.

5. Draw straight lines connecting these data points.

All control charts have three basic components:

a) a centerline, usually the mathematical average of all the samples plotted;

b) upper and lower statistical control limits that define the constraints of common-cause variations;

c) performance data plotted over time.

It is from those common points that the different types of control charts flow,dictated by the type of data and format.

These charts are used to: Diagnose problems by raising alarm that the process is going out of control, so

that corrective actions can be taken without a delay. To understand when to let the process continue undisturbed and avoid

unnecessary adjustments In the process, which tends to increase the variability. To determine the inherent capability of the process.

Group 3: Data Analysis And Presentation Tools

Histogram

A Histogram is a graphic summary of variation in a set of data. It enables us to see patterns that are difficult to see in a simple table of numbers. It can be analyzed to draw conclusions about the data set.It is a graph in which the continuous variable is clustered into categories and the value of each cluster is plotted to give a series of bars as in the following figure. The following example reveals the skewed distribution of a set of product measurements that remain nevertheless within specified limits. Without using some form of graphic this kind of problem can be difficult to analyse, recognise or identify.

Method of constructing a histogram :

i. Data or observations are collected. (At least 30 observations make the histogram statistically meaningful.)

ii. Calculate the range of the values observed. This is easily done by subtracting the lowest value observed from the highest value.

iii. Total number of bars is to be taken approximately equal to the square root of the number of observations. In practice the number of bars are kept between 6 to 12.

iv. The range of values is subdivided in the classes of equal width, decided by dividing the range by number of bars decided.

v. Starting point is calculated by subtracting half the unit from the lowest value.

vi. Plot the classes on the horizontal or X-axis, and the frequencies of occurrence of observations on the Y-axis.

vii.Draw the rectangle or the bar representing the height corresponding to the frequency of the class interval using the scale on the Y-axis. The bars should be touching each other.

Pareto Analysis Diagram

In the nineteenth century, economist Vilfredo Pareto determined that approximately 80% of his country's wealth was controlled by about 20% of the population. Thus was born the 80/20 rule. The Pareto diagram is the histogram arranged in (usually) descending order of bar height. Figure 5.8 is the Pareto representation of the tally sheet numbers. Also indicated is the approximate 80% point. The Pareto principle suggests that most effects come from relatively few causes. In quantitative terms: 80% of the problems come from 20% of the causes (machines, raw materials, operators etc.); 80% of the wealth is owned by 20% of the people etc. Therefore effort aimed at the right 20% can solve 80% of the problems. Double (back to back) Pareto charts can be used to compare 'before and after' situations. General use, to decide where to apply initial effort for maximum effect.

Figure 5.8: Pareto diagram.

FlowchartFlowcharts are diagrams that permit users to describe processes. They are not used to represent data, but rather the way in which things are done. Manufacturing, sales, banking, military, software, in fact nearly all processes have been described with flowcharts.

Pictures, symbols or text coupled with lines, arrows on lines show the direction of flow. It enables modelling of processes; problems/opportunities and decision points etc. It develops a common understanding of a process by those involved. It dont have any particular standardisation of symbology, so communication to a different audience may require considerable time and explanation. Figure 5.9 depicts the format for a flowchart.

Group 4: Problem Solving Tools

Cause And Effect, Fishbone, Ishikawa Diagram

Cause-and-effect analysis uses diagramming techniques to identify the relationship between an effect and its causes. Cause-and-effect diagrams are also known as fishbone diagrams. Figure 20-10 demonstrates the basic fishbone diagram. Six steps are used to perform a cause-and-effect analysis.

Figure 20-10: Cause-and-effect diagram.

Step 1. Identify the problem. This step often involves the use of other statistical process control tools, such as Pareto analysis, histograms, and control charts, as well as brainstorming. The result is a clear, concise problem statement.

Step 2. Select interdisciplinary brainstorming team. Select an interdisciplinary team, based on the technical, analytical, and management knowledge required to determine the causes of the problem.

Step 3. Draw problem box and prime arrow. The problem contains the problem statement being evaluated for cause and effect. The prime arrow functions as the foundation for their major categories.

Step 4. Specify major categories. Identify the major categories contributing to the problem stated in the problem box. The six basic categories for the primary causes of the problems are most frequently personnel, method, materials, machinery, measurements, and environment, as shown in Figure 20-10. Other categories may be specified, based on the needs of the analysis.

Step 5. Identify defect causes. When you have identified the major causes contributing to the problem, you can determine the causes related to each of the major categories. There are three approaches to this analysis: the random method, the systematic method, and the process analysis method.

Random method. List all six major causes contributing to the problem at the same time. Identify the possible causes related to each of the categories, as shown in Figure 20-11.

Figure 20-11: Random method.

Systematic method. Focus your analysis on one major category at a time, in descending order of importance. Move to the next most important category only after completing the most important one. This process is diagrammed in Figure 20-12.

Figure 20-12: Systematic method.

Group 5 : Prevention Tools

Prevention tools like Failure mode and effect analysis tries to identify various types of risks and set up controls or minimize their occurrence of impact.Four groups of hazards :

1. Inherent - present in the raw material from outset.2. Contamination - introduced at intermediate stages.3. Multiplication - an opportunity for risk to increase.4. Survival - Hazard or risk may survive a stage designed to remove it.

For each risk / hazard identified, decide :1. Risk it represents based on probability of occurrence.2. Risk on basis of seriousness of consequences if it does occur.

Critical steps identified to control and assure safety.

Levels of RISK are broken down as :1. High concern - imminent risk to consumer or customer.3. Medium risk - needs control to avoid significant risk.4. Low risk - little risk to public/customer or product, but good practice to control

the risk.5. Nil concern - low threat to the consumer.

Wherever high risk identified :Identify "Critical Control Points" and train the concerned people to take care of the controls for a safe operation,

Group 6: Improvement tool in form of "Benchmarking"

Benchmarking is the systematic structured tool for comparison. There are three levels of Benchmarking such as internal Benchmarking, competitive Benchmarking and functional Benchmarking. Means of Benchmarking are products, processes and people.

Internal BenchmarkingIt is comparison against another division or department within the company or another company within the same group. This is the most common way oi Benchmarking and can produce good results.

Competitive Benchmarking It involves assessing the products and processes with respect to leading competitors and accordingly planning for appropriate corrective and preventive actions.

Functional BenchmarkingIt involves, the company Benchmarking ils processes with a company in another field which is the best in that process.

Steps in Benchmarking process :

i. Decide what is to be benchmarked.

ii. Select the companies whose products, processes and people with which the organization wants to measure and improve.

iii. Decide upon parameter to be measured to assess the performance level of the competitor compared with the own company and develop a plan and methodology of gathering the data to make usable and valid comparisons.

iv. Determine competitor's strength and compare with the past history of the organization's performance.

v. Work out an action plan and decide on measurable, quantifiable and specific objectives to achieve and maintain superiority. Action plan is worked out by group participation and responsibilities are assigned and progress towards desired performance level is monitored periodically.

Benefits of Benchmarking:

i. Possibility of major improvements in shorter time by comparing and learning from others.

ii. It yields fast and substantial improvement in business results.

Q.7 How TQM should be aligned with business strategy ? Discuss

Ans. Total Quality Management (TQM) refers to management methods used to enhance quality and productivity in organizations, particularly businesses. TQM is a comprehensive system approach that works horizontally across an organization, involving all departments and employees and extending backward and forward to include both suppliers and clients/customers. TQM provides a framework for implementing effective quality and productivity initiatives that can increase the profitability and competitiveness of organizations.

Specifics related to the framework and implementation of TQM vary between different management professionals and TQM program facilitators, and the passage of time has inevitably brought changes in TQM emphases and language. But all TQM philosophies share common threads that emphasize quality, teamwork, and proactive philosophies of management and process improvement.

There are three characteristics necessary for TQM to succeed within an organization: participative management; continuous process improvement; and the utilization of teams.

Participative management refers to the intimate involvement of all members of a company in the management process, thus de-emphasizing traditional top-down management methods. In other words, managers set policies and make key decisions only with the input and guidance of the subordinates that will have to implement and adhere to the directives. This technique improves upper management's grasp of operations and, more importantly, is an important motivator for workers who begin to feel like they have control and ownership of the process in which they participate.

Continuous process improvement, the second characteristic, entails the recognition of small, incremental gains toward the goal of total quality. Large gains are accomplished by small, sustainable improvements over a long term. This concept necessitates a long-term approach by managers and the willingness to invest in the present for benefits that manifest themselves in the future. A corollary of continuous improvement is that workers and management develop an appreciation for, and confidence in, TQM over a period of time.

Teamwork, the third necessary ingredient for the success of TQM, involves the organization of cross-functional teams within the company. This multidisciplinary team approach helps workers to share knowledge, identify problems and opportunities, derive a comprehensive understanding of their role in the over-all process, and align their work goals with those of the organization.

The six attributes of successful TQM programs:

Customer focus (includes internal customers such as other departments and coworkers as well as external customers)

Process focus Prevention versus inspection (development of a process that incorporates quality during

production, rather than a process that attempts to achieve quality through inspection after resources have already been consumed to produce the good or service)

Employee empowerment and compensation Fact-based decision making Receptiveness to feedback.

It is very important to achieve the business objectives by alinging various business processes. Functions/Activities are performed to achieve business objectives. Departmental objectives are derived from business objectives. Activities are performed in the department to achieve departmental objectives. For each activity there is immediate internal or external Customer and Supplier.

It is necessary for every process owner to think about "My Customers" and "What I provide to them" and about "My Suppliers" and "What They Provide To Me".

It is necessary to identify major business processes in the organization and measurement of process performance. Following are some commonly identified as major business processes in the industry.

Major Business Proce sses Identified:

1. Customer Service and Supply Chain

Forecasting Customer Orders

Scheduling parts on our suppliers

Planning ourfactory production

Making product in our factory and delivering to our distribution centers

Customer ordering, delivering and invoicing

2. New Product

Interviewing end users and understanding their needs

New Product planning

New product design and manufacturing

New product marketing plans

3. Sales and Marketing

Market Research

Stimulation of end users interest

Excellent marketing execution with our customers

Acquiring new customers

Developing customer partnerships

4. People

Hiring, appraising, training, developing

Communicating

Reward and recognition

Developing organization to meet customers' needs

Every individual working in the organization should understand vital few priorities with respect to these vital few processes. This helps in aligning individual priorities with business priorities. Hence in turn it helps to achieve business objectives efficiently and effectively. Business objectives are derived from business vision. It means TQM helps to implement business strategy.

Q.9 Explain Juran on Quality in detail. Compare it with Deming's principles of quality.

Ans. During the past hundred years, the views of quality have changed dramatically. Previously, quality was viewed predominantly as inspection, sorting out the good items from the bad. Today, emphasis is being placed on strategic quality management, including such topics as:

Quality is defined by the customer.

Quality is linked with profitability on both the market and cost sides.

Quality has become a competitive weapon.

Quality is now an integral part of the strategic planning process.

Quality requires an organization-wide commitment.

Although many experts have contributed to the success of the quality movement, the three most influential contributors are W. Edwards Deming, Joseph M. Juran, and Phillip B. Crosby.

Juran believes that the contractor's view of quality is conformance to specification, whereas the customer's view of quality is fitness for use when delivered and value. Juran also admits that there can exist many grades of quality. The characteristics of quality can be defined as:

Structural (length, frequency)

Sensory (taste, beauty, appeal)

Time-oriented (reliability, maintainability)

Commercial (warrantee)

Ethical (courtesy, honesty)

Dr. Juran also stressed the cost of quality (Section 20.8) and the legal implications of quality. The legal aspects of quality include:

Criminal liability

Civil liability

Appropriate corporate actions

Warranties

Dr. Joseph M. Juran defines quality as a combination of product performance and freedom from product deficiencies.

Product performance means product satisfaction as determined by external customers. Freedom from deficiencies means freedom from product dissatisfaction or customer complaints. The focus of quality is meeting customer needs.Juran identifies a trilogy of “managerial” processes required for quality. They are:

Quality planning. The objective is to provide the operational staff with the means of producing products that can meet customers’ needs. If a process produces a 20 percent level of waste consistently, it indicates that the process was designed to produce waste. Chronic information quality problems are an indication of poor information quality planning and design.

Quality control. Quality control seeks to maintain a specified level of quality within acceptable limits of variability or at least to keep quality from getting worse. It calls for putting out fires caused by processes out of control.

Quality improvement. The purpose of quality improvement is to improve the processes to eliminate scrap and rework and increase the ability of the product to meet customer needs more effectively.

Dr. Juran developed his 10 Steps to Quality Improvement :

1. Build awareness of the need and opportunity for improvement.

2. Set goals for improvement.

3. Organize to reach the goals (establish a quality council, identify problems, select projects, appoint teams, designate facilitators).

4. Provide training.

5. Carry out projects to solve problems.

6. Report progress.

7. Give recognition.

8. Communicate results.

9. Keep score

10. Maintain momentum by making annual improvement part of the regular systems and processes of the company.

Comparison of Juran's and Deming's Principles of Quality

Deming's definition of quality is "continuous improvement." Although variations cannot be entirely eliminated, we can learn more about them and eventually reduce them. The ultimate goal obviously is zero defects, but this error-free work may not be economically feasible or practical.Juran believes that for quality to improve, we must resolve "sporadic" problems and "chronic" problems. Sporadic problems are short-term problems that generate sudden changes for the worse in quality; techniques exist for identifying and controlling them.

"Chronic" problems, on the other hand, may require scientific breakthrough to achieve higher levels of quality. Chronic problems exist because workers may not accept change and refuse to admit that there may be a better way of doing things. Solving chronic problems requires breakthrough projects, specific targets usually established on a yearly basis, strong and visible senior management support, and the use of quality experts to lead the company-wide quality improvement programs. Unlike Deming, who avoids the use of targets and quotas, Juran's objective is to get management to accept the habit of an annual quality improvement program based upon well-defined targets.

Juran's method for determining the cost of quality, therefore, suggests that the pursuit of quality will pay for itself only up to a certain point, and beyond that point costs may rise significantly.

Juran develops 10 points for Quality Improvement as discussed above, whereas Deming's designed 14 Points for Management

1. Create constancy of purpose for improvement of product and service.

2. Adopt the new philosophy.

3. Cease dependence on inspection to achieve quality.

4. End the practice of awarding business on the basis of price tag alone. Instead, minimize total cost by working with a single supplier.

5. Improve constantly and forever every process for planning, production, and service.

6. Institute training on the job.

7. Adopt and institute leadership.

8. Drive out fear.

9. Break down barriers between staff areas.

10. Eliminate slogans, exhortations, and targets for the work force.

11. Eliminate numerical quotas for the workforce and numerical goals for management.

12. Remove barriers that rob people of workmanship. Eliminate the annual rating or merit system.

13. Institute a vigorous program of education and self-improvement for everyone.

14. Put everybody in the company to work to accomplish the transformation.

Table: Comparison of Juran's and Deming's Principles of Quality

Deming Juran

Definition of quality

Continuous improvement

Fitness for use

Application Manufacturing-driven companies

Technology-driven companies

Target audience

Workers Management

Emphasis on Tools/system Measurement

Type of tools Statistical process control

Analytical, decision-making and cost-of-quality

Use of goals and

Not used Used for breakthrough

Q.10 Explain Malcom Balridge National Quality Award and European Quality Award.

Ans. The Baldrige Award is given by the President of the United States to businesses—manufacturing and service, small and large—and to education and health care organizations that apply and are judged to be outstanding in seven areas: leadership; strategic planning; customer and market focus; measurement, analysis, and knowledge management; human resource focus; process management; and results.The purpose of this award program was to help improve quality and productivity by:

(A) helping stimulate American companies to improve quality and productivity for the pride of recognition while obtaining a competitive edge through increased profits,

(B) recognizing the achievements of those companies which improve the quality of their goods and services and providing an example to others,

(C) establishing guidelines and criteria that can be used by business, industrial, governmental and other organizations in evaluating their own quality improvement efforts, and

(D) providing specific guidance for other American organizations that wish to learn how to manage for high quality by making available detailed information on how winning organizations were able to change their cultures and achieve eminence" [House Resolution 812, U.S. Government (1987)].

The act provided that up to two awards could be presented to companies in each of three categories:

Small businesses

Companies or their subsidiaries

Companies that primarily provide services

The act also stated that to be eligible for the award, a company must submit an application in writing. And the company must permit a "rigorous evaluation of the way in which the business and other operations have contributed to improvements in the quality of goods and services."

Some of the well known winners of The Malcolm Baldrige National Quality Award include Motorola, Federal Express and Ritz Carlton.

The Malcolm Baldrige National Quality Award Core ValuesIn creating the Malcolm Baldrige National Quality Award, the first step was to develop the criteria that would be used to evaluate the organizations applying. The director of the National Bureau of Standards selected Dr. Curt Reimann as director of the Malcolm Baldrige National Quality Award. Dr. Reimann immediately began calling on individuals and organizations throughout the United States and the world for their

suggestions and contributions to creating the criteria and the process by which these

criteria would be evaluated. Dr. Reimann and his staff collected much information on other awards, such as the JUSE Deming Prize and the NASA quality award, as background information. They then selected a small team of volunteers to help create the first draft of the criteria. Selected experts from organizations throughout the United States reviewed these draft criteria in intensive focus group sessions.

One of the most important actions taken by the director, his team, and the volunteers at this stage was to create a clear design strategy for the award program. The elements of the strategy were as follows:

To create a national value system for quality

To provide a basis for diagnosis and information transfer

To create a vehicle for cooperation across organizations

To provide for a dynamic award system that would evolve through consensus and be continuously improved

The design strategy has been followed carefully. The award criteria have been improved each year.

The Malcolm Baldrige National Quality Award Criteria are the basis for the awards and providing feedback to the applicants. The criteria also have three other important purposes.

To help raise quality performance standards and expectations

To facilitate communication and sharing among and within organizations of all types based upon a common understanding of key quality and operational performance requirements

To serve as a working tool for planning, training, assessment, and other uses

The Malcolm Baldrige National Quality Award CriteriaThe core values and concepts described above are embodied in seven categories:

1. Leadership

2. Strategic Planning

3. Customer and Market Focus

4. Information and Analysis

5. Human Resource Focus

6. Process Management

7. Business Results

The dynamic relationships among these seven categories are best described by the Figure 4-10,

Figure 4-10: Malcolm Baldrige National Quality Award Relationships

Leadership, Strategic Planning, and Customer and Market Focus represent the leadership triad. These categories are placed together to emphasize the importance of a leadership focus on strategy and customers. Human Resource Focus, Process Management, and Business Results represent the results triad. A company's employees and its supplier partners, through its key processes, accomplish the work of the organization that yields the business results. The Information and Analysis category is critical to effective management and to a fact-based system for improving company performance and competitiveness. It also serves as the foundation for the performance management system.

The seven categories are further subdivided into eighteen examination items, each focusing on a major requirement. Each item contains one or more areas to address. There are twenty-nine areas to address. The seven categories and the points for each category are shown in Figure 4-10.

The areas to address give specific instructions regarding what information should be contained in the application form. Notes supporting each section give further explanation and clarification. The notes also help the applicant to understand where certain data should be reported when there are several possibilities.

THE EUROPEAN QUALITY AWARD The European Quality Award is awarded annually by the European Foundation for Quality Management to the organisation that is the best proponent in Europe of Total Quality Management.

The European Quality Award is similar to the Baldrige Award- The award is presented annually to the organizations judged to be the most successful exponents of total quality management in Europe.

The European Quality Award (EQA) shares many concepts and criteria elements with the Malcolm Baldrige National Quality Award (MBNQA), but the two awards differ in some important ways. It was established in 1988 by the European Foundation for Quality Management, a consortium of 14 leading Western European companies. The European Foundation for Quality Management has a membership of over 600 European organizations, all of which are committed to improving efficiency and effectiveness and achieving business excellence.

The winners are chosen from four categories

Whole companies

Operational units of companies

Small and Medium sized companies

Public Sector Organizations

The European Quality Awards are designed to recognise organisational performance and improvement across the nine categories of the European Business Excellence Model -

1. leadership;2. people management;3. policy and strategy, 4. resource management,5. process management,6. customer satisfaction,7. people satisfaction (defined as the perception of people toward the organization),8. impact on society, and9. business results.

The logical model of the EQA is quite clear (see Figure 4-13). The first element is leadership that leads people management, policy and strategy, and resources. These in turn promote processes that control people satisfaction, customer satisfaction, and impact on society. These three promote business results.

One of the major differences between the Malcolm Baldrige National Quality Award and the EQA is the emphasis the EQA puts on self-assessment. The EQA makes the principle of self-assessment an entry requirement for companies applying for the award.

A second difference between the EQA and the Baldrige Award is the apparent absence in the EQA of the fundamental internal results category. Some people argue that internal results are implicit in other categories, but it is inadmissible that such an important category should be absent or implicit in some other category.

Another difference between the Baldrige Award and EQA is the way in which the awards are administered. The Baldrige Award is competitive; it is given to a maximum of two companies in each of three categories: manufacturing, service, and small business. So far this has not been a problem, since the maximum number of companies has never been reached. The EQA is essentially noncompetitive; every company that reaches the pass mark receives a "prize." The award is given to the best prize winner. In some ways this makes the EQA even more competitive, since companies have a great desire to win the award, not just a "prize."

Q11. Explain the role of Environmental Management System in TQM.

Ans. The environmental management system concept is based mainly on overall TQM elements.The environmental management system is defined as ‘a set of tools for management, enabling the environmental policy accomplishment and as a consequence adverse environmental impact continual reduction, that should be optimal for both the organisation and environment’.

ISO14001 describes the environmental management system as ‘a part of an overall management system, that includes organisational structure, planning, responsibility, rules, procedures, processes and measures for elaboration, implementation, accomplishment, survey and the environmental policy maintenance.’

Overview Of ISO 14001

A. General Requirements (4.1)· There must be a documented system that meets all the requirements contained in the standard.

B. Environmental Policy (4.2)· Relevant to the organization's activities.· Comply with legislation.· Commits to prevention of pollution.· Commits to continual improvement.· Commits to setting environmental objectives and targets.· Available to all employees and the public.

PLAN

C. Environmental Aspects (4.3.1)· Identified for normal operating conditions, foreseeable deviations and emergencies.

D. Legal and Other Requirements (4.3.2)· Relevant legislation, regulatory and other environmental targets must be available.

E. Objectives and Targets (4.3.3) · Environmental objective and targets must be established that are consistent with the environmental policy.

F. Environmental Management Program (4.3.4)· Programs for the achievement of objectives and targets must be established, and responsibilities must be designated.

DO(IMPLEMENT)

G. Structure and Responsibility (4.4.1) · Adequate human resources and appropriate skills must be provided.· A management representative must be assigned to insure that the EMS is implemented and to report performance to management.

H. Training, Awareness and Competence (4.4.2)· Employees must be aware of environmental objectives.· Employees with responsibility in the area of the environmental objectives must have appropriate training and understand the consequences of the functions.

I. Communication (4.4.3)· A system must be in place for receiving and responding to communications regarding environmental aspects from both internal and external sources.

J. Environmental Management System and Documentation (4.4.4) · There must be a documented description of the environmental management system that relates the policy, objectives and targets, and responsibilities.· It must describe how to access any other associated documentation (i.e.procedures, lists and/or records).

K. Document Control (4.4.5)· There must be a document control system.

L. Operational Control (4.4.6) · Documented procedures must be prepared when they are needed to insure conformance with the requirements of environmental management system.· Suppliers and contractors should be informed of the procedures.

M. Emergency Preparedness and Response (4.4.7)· Foreseeable emergency situations must be identified and appropriate procedure(s) prepared for implementation.· The procedure(s) must be tested periodically.

CHECK

N. Monitoring and Measurement (4.5.1)· There must be documented procedures for monitoring activities that impact on the environment.

· Monitoring equipment must be calibrated.· There must be a procedure for evaluating compliance with relevant environmental legislation and regulations.

O. Nonconformance and Corrective and Preventative Action (4.5.2)· There must be a process in place for handing non conformance(s) based upon investigation and subsequent corrective action.

P. Environmental Management Records (4.5.3)· Record retention and archiving must be specified.

Q. Environmental Management System Audit (4.5.4)· The environmental management system must be audited to insure that it is operating as designed.· The results of the audit must be reported to management.· Non conformance(s) must be addressed.

ACT

R. Management Review (4.6)· Management must review the environmental management system, with special emphasis on the policy and the objectives, to ensure that environmental management system is still effective to the organization's activities.· If the conditions under which the previous environmental aspects were evaluated have changed, the policy and objective(s) and target(s) may need to be reevaluated and modified.

According to the TQM philosophy, the environmental management system is based on cyclic actions for continual improvement, as it is presented in the Deming Cycle. The four following stages of the cycle concern specific actions, as discussed above:

Plan - objectives and targets definition, methods of their accomplishment and procedures development

Do – the plan implementation, accomplishment of actions aiming at achieving the organisation’s objectives and maintaining compliance with assumed procedures

Check – actions, efficiency control and comparing the results with the plan

Act - all mistakes correction, a possible review and the adaptation of a plan and procedures

It should be remembered that the process is continual and cyclic. Each cycle starts with planning the actions for environmental impact reduction. It is based on defining environmental problems and objectives and working on the schedule. Since almost every action in an organisation has or may have an environmental impact, planning the actions should include all aspects of the organisation’s activities, especially outside its location such as waste utilisation and subcontractors’ interactions.

To be effective, the EMS should enable the organisation’s policy objectives achievement, usually defined by the top management. Hence, in the "Do" stage a significant factor of the effective EMS implementation is the top management’s engagement and support. It is also significant to intensify the employees’ engagement through raising their awareness and qualifications.

At the end of each cycle the system’s audit is conducted (Check). Then there is the management review resulting in verification of the system assumptions and adapting them to the present situation (Act). Then the cycle begins again. Such an approach enables the system’s continual improvement and adverse environmental impact reduction. An unattainable objective of each organisation using the EMS should be ‘zero environmental impact’. It is another reference to the TQM, where one of the rules is aiming at the ‘zero defects objective’, meaning the complete elimination of defective products.

As the EMS should be an integral part of the organisation’s management system, it impacts on the following elements:

mission - it should include the compulsory reduction of environmental impact, strategy – environmental issues are included in the whole organisation’s business

plans structure - there is an organisational structure, that precisely defines the range of

the responsibility and competence of the employees engaged in environmental protection actions

systems – practices and procedures for all processes should include environmental protection actions (such as the integration with the present quality management system, occupational health and safety, finance)

employees – appropriate employees are selected and trained to achieve the system’s key targets . All employees’ qualifications and knowledge enable

achieving certain targets the management style – the organisation’s top management’s acts to motivate the

rest of the employees to positive actions

Benefits of implementing an iso 14001 environmental management system

1. Process improvement.

2. Environmental cost reduction.

3. Better relationships with regulators

4. Better relationships with insurers, investors, and financial markets

5. Product improvement

6. Marketing advantages

7. Better control of liabilities

8. Reduced regulatory burden

9. Protection of company image and name

10. Protection of company image and name

11. Demonstration of responsible management

Thus, an Environmental Management System:

Serves as a tool to improve environmental performance Provides a systematic way of managing an organization’s environmental affairs Is the aspect of the organization’s overall management structure that addresses

immediate and long-term impacts of its products, services and processes on the environment

Gives order and consistency for organizations to address environmental concerns through the allocation of resources, assignment of responsibility and ongoing evaluation of practices, procedures and processes

Focuses on continual improvement of the system