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Finish Line & Beyond

Definitions & Dimensions

Planning

Quality Costs

TQMHistory

Barriers to TQM

This chapter contains introduction of quality andTotal Quality Management (TQM).

There are following topics :

Definitions & DimensionsPlanning

Quality Costs

TQMHistory

Barriers to TQM Implementation

Quality is a very subjective thing. Sometimes it is

easily visible, sometimes you require an expert to tell

the difference. In the given picture it is easier to tell

that a hygienic burger is of better quality than non-hygienic samosa made of spurious raw-material.

Definitions

ISO 9000: "Degree to which a set of

inherent characteristics fulfillsrequirements."

The standard defines requirement as

need or expectation.

Six Sigma: "Number of defects permillion opportunities."

Philip B. Crosby: "Conformance to

requirements." The requirements may

not fully represent customerexpectations; Crosby treats this as a

separate problem.

There are various definitions of quality given by

various authorities and organizations. Every

definition gives a unique perspective about quality.

These definitions talk about quality meeting pre-set

criteria. It is all about conforming to known

requirements.

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Definitions

Joseph M. Juran: "Fitness for use."

Fitness is defined by the customer.

Noriaki Kano and others, present atwo-dimensional model of quality:

"must-be quality" and "attractive

quality."

Following definitions talk about consumers

perspective. And a consumers top priority is always

to get some functionality from the product.

Definitions

Robert Pirsig: "The result of care."

Genichi Taguchi, with two

definitions:

a. "Uniformity around a target

value."

b. "The loss a product imposes onsociety after it is shipped."

Taguchi talks about lack of variations against set

parameters. As attaining 100% perfection is

impossible in real life situations, so Taguchi talksabout getting as closer to perfection as possible.

Moreover, Taguchi harps on the issue of cost to the

society in the long run if there is bad quality in a

product or service.


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Definitions

American Society for Quality:

"A subjective term for which eachperson has his or her own definition.

In technical usage, quality can havetwo meanings:

a. The characteristics of a product or

service that bear on its ability to

satisfy stated or implied needs;b. A product or service free of

deficiencies."

The definition by American Society talks aboutsubjectivity of quality. For a rural person traveling in

a rickety bus can mean comfort, while for the jet-set

people an AC taxi will give the bare minimumcomfort.

Definitions

Quality of a product or service refers

to the perception of the degree to

which the product or service meetsthe customer's expectations.

Quality has no specific meaningunless related to a specific function

and/or object. Quality is a perceptual,

conditional and somewhat subjective

attribute.

In totality quality means conformance to pre-set

criteria as well as ability to satisfy the end user. If a

pen is unable to write then the diamond studded on it

is of no use.

Dimensions of Quality

Performance: Basic FunctionalAspect

Features: Cant give core benefit

Aesthetics: Look, finish, etc.

Reliability: Lineage

Durability: Optimum life span

The top most dimension of quality is the functionality

of a product. For example a mixer grinder should be

able to grind the hard turmeric, otherwise three speedgear box is of no use to the end user.

Features are like add on benefits, like fancy

attachments provided with the mixer grinder.

A pleasant look will always add value to the product.

If the mixer is from USHA or PHILIPS then it willhelp the customer in buying decision.


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Dimensions of Quality

Serviceability: Ease of getting

servicedSafety: Air Bags

User-friendliness: Windows Vs Linux

Customizability: Lens attachmentNikon

Environmental-friendliness

Take the example of Maruti service centre advt whichtalks about the possibility of finding one in the

remotest corner of India.

The product should be safe and can be handled with

kids globes. Popularity of Windows over other

operating systems is a good example of userfriendliness winning over customers.

Apple i-Pod has options of changing skin which is

ideal for the target group.

Quality Planning

1. Set quality objectives and targets

2. Take into account customers

wants3. Plan about marketability of the

products.

Planning quality starts with setting quantifiable and

measurable targets. While doing this the organization

needs to keep customers wants in mind. Once the

quality objective is decided it is important to thinkabout the market feasibility of the product.

TATA Nano can prove if Ratan Tata was wrong orright when he planned for the peoples car of India.

Quality Planning

Carry out pre-productionprocess capability or quality

deliverability studies.

Once everything is planned the organization needs to

asses its capability to deliver the target quality. If

there is gap in capability then the organization needsto fill that gap by upgrading to the required

technology and skill sets.

Before planning for Chandrayan ISRO must have

thought about its capabilities to build and deliversuch a spacecraft.


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Quality Planning

Establish the relative importance

of the quality characteristics andSpecifications.

Communicate to the productionline people and vendors supplying

the raw materials.

A ranking chart should be developed to finalize themost important aspect of quality planning and more

focus should be given to that aspect.

Communicating the target and plan to frontline

people is important because they are the people who

will implement everything in the real life situation.They should be properly convinced before starting

the new course.

Quality Planning

Establish statistical control

techniques, charts and

sampling plans.

Establish training

programmes.

Plan to monitor the progress of quality programme is

important. This can be done by devising ways and

means to monitor progress and finding deviations.

Costs of Quality:

Maintaining the quality at least

possible cost.

The ultimate goal of an organization is to earn profits.

So keeping the cost at minimum possible level is

important. Otherwise the higher input cost may notpermit the ultimate aim of the organization.


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Cost of quality involves following aspects:1. Cost of Appraisal

2. Cost of Prevention

3. Cost of Failure

Costs of Quality:

Costs of Appraisal:

Inspection,

Testing,Monitoring

Control

This is about assessing the current situation. This will

involve manhour and resources.

Costs of Prevention:

Prevent bad quality output.Plan Precautions

Prevent Bad Raw Material

Prevent Wrong Sampling

Prevention requires manhour as personnel need to be

deployed to inspect the raw material and finished

goods.


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Costs of failure:

Rejects, rework, spoilage,

Customer complaints

Product service

Cost of failure needs to be planned out in advance asno matter how much precautions are taken failures

are part of life.

Analysis of Costs of Quality

Category to category comparison:

Comparing the relative amounts spent

on each of the above mentioned costcategories.

Time to time comparison:

Comparing one quarters operationswith the previous quarters

operations.

The comparative analysis of cost of quality can give

an idea about where to focus more to improve further.

Base for Analysing Costs of Quality

Number of units produced in a

time period

Net sales for that period

Total direct labour costs for

that period

Value added (net sales minus

the direct material cost)


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Total Quality Management

Objective:

Total customer satisfaction

Totality of functions

Total range of products and services

Total means 100%, so TQM is about managing allaspects of quality and ultimate goal should be the

Total Customer Satisfaction.

Every functional area should stick to the quality plan

of the organization and strive to attain the planned

quality target.

Each offering from the organization should be of

optimum quality. Because one rotten apple can spoil

the whole basket.


Addressing all aspects of dimensions

of quality

Addressing the quality aspect in

everything products, services,

processes, people, resources andinteractions.

Satisfying all customers internal as

well as external

TQM is about addressing all aspects of dimensions of

quality. If there is a good product in bad packaging it

is not going to give the desired returns to the

organization. A good car with a bad bumper willtarnish the image of the company.

An ill tempered receptionist can turn away potentialcustomers from a nice 5-star hotel.

A satisfied employee will always bring a satisfied

customer, so internal customers are also important.


Addressing the total organizationalissue of retaining customers and

Improving profits, as well as

generating new business for the

future.

Involving everyone in theorganization in the attainment of the

said

objective.

Demanding total commitment from

Retaining internal customer is important for better

knowledge management and continuity of the

process. Retaining external customer is important toget repeat sales.

Everybody, right from the shopfloor employee to the

top management, should have total commitment to

the predetermined quality goals.


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all in the organization towards theachievement of the objective.

HISTORY

Effect of Industrialisation onworkmanship

W.A. Shewart (1924)Statistical charts for Bell Tele

H. F. Dodge & H.G. Roming:Acceptance sampling as a

substitute for 100% inspection

in Bell.

1946 American Society forQuality Control formed laterchanged to American Society

for Quality

1960s Japanese managementstarted quality control circles.

Think about quality concept which a road side trinket

seller may be having.

Think about the quality concept your neighbourhoodbarber may be having.

Think about the quality concept which the nearbyDominos may be having.

One can get every bit of history in a wonderful

country like India.


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Lack of Management Commitment

Inability to Change Culture

Improper Planning

Lack of Continuous Training

If the top management takes quality as a form ofwindow dressing then the organization is not going to

attain the desired goal.

It is difficult but important to change the culture of

the organization. Paradigm change is needed to force

people to strive for the new quality goal.

As quality is a continuous and never ending process,

so is the training.


Incompatible Organizational

Structure

Isolated Individuals and departments

Ineffective Measurement Techniques

Lack of Access to Data

Inadequate Attention to External &

Internal

Customers

Inadequate Empowerment and

Teamwork

Failure to Continually Improve

People should not live in silos. They should come out

to facilitate better interactions to share knowledge.

People should be empowered to sort out issues. Thiswill reduce the throughput time. Obviously

accountability is important along with empowerment.


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