Quality & TQM

1. Quality & TQM By S.Pragash Date : 29th Sept 2013

2. What is Quality???? • Quality means different things to different people and in different situations. This • list gives some of the informal definitions of quality: • 1) Quality is not a program; it is an approach to business. • 2) Quality is a collection of powerful tools and concepts that are proven • to work. • 3) Quality is defined by customers through their satisfaction. • 4) Quality includes continual improvement and breakthrough events. • 5) Quality tools and techniques are applicable in every aspect • of business. • 6) Quality is aimed at perfection; anything less is an improvement • opportunity. • 7) Quality increases customer satisfaction, reduces cycle time and costs, • and eliminates errors and rework. • 8) Quality is not just for businesses. It works in nonprofit organizations • such as schools, healthcare and social services, and government • agencies.

3. What is Quality????

4. Formal definition of Quality???? • Quality is excellence that is better than a minimum standard. It is conformance to standardsand ‘fitness of purpose’ • ISO 9000:2000 definition of quality- It is the degree to which a set of inherent characteristics fulfills requirements. • Quality is ‘ fitness for use ‘ of the product – Joseph Juran.

5. History of Quality Evolution….. • Quality in articles and artefacts produced by skilled craftsmen and artisans from the B.C. era eg. goldsmiths,silversmiths, blacksmiths, potters,etc. • Artists & Artisans Guilds in the Middle ages spent years imparting quality skills and the worksmen had pride in making quality products. • Industrial Revolution brought factory manufacturing where articles were mass-produced and each worker made only a part of the product,and did not sense the importance of his contribution to the quality of the product • In 1924, W.A.Shewhart of Bell Telephone Labs developed a statistical chart for the control of product variables – the beginning of SQC and SPC. • In the same decade, H.F.Dodge and H.G.Romig of Bell Telephone Labs developed statistical acceptance sampling instead of 100% inspection. • In 1946,the American Society for Quality Control was formed. • In 1950, W. Edwards Deming,who learnt SQC from Shewhart,taught SPC & SQC to Japanese engineers and CEO’s

6. History of Quality Evolution….. • In 1954,Joseph M.Juran taught Japanese managements their responsibility to achieve quality . • In 1960, the first quality control circles were formed. SQC techniques were being applied by Japanese workers. • 1970’s US managers were learning from Japan Quality implementation miracles. • In 1980’s TQM principles and methods became popular.(also in auto industry) • In 1990’s ,the ISO 9000 model became the world-wide standard for QMS.

7. Evolution of Quality Management • 1924 - Statistical process control charts • 1930 - Tables for acceptance sampling • 1940’s - Statistical sampling techniques • 1950’s - Quality assurance/TQC • 1960’s - Zero defects • 1970’s - Quality assurance in services

8. The Quality Gurus • Walter Shewhart • “Father of statistical quality control” • W. Edwards Deming • Joseph M. Juran • Armand Feignbaum • Philip B. Crosby • Kaoru Ishikawa • Genichi Taguchi

9. Quality & Customer expectation • Quality is also defined as excellence in the product or service that fulfills or exceeds the expectations of the customer. • There are 8 dimensions of quality that may be found in products that produce customer-satisfaction. • Quality is not fine-tuning your product at the final stage of manufacturing , before packaging and shipping . • Quality is in-built into the product at every stage from conceiving –specification & design stages to prototyping –testing and manufacturing stages.

10. 8 Dimension of Quality • Performance - main characteristics of the product/service • Aesthetics - appearance, feel, smell, taste • Special features - extra characteristics • Conformance - how well product/service conforms to customer’s expectations • Reliability - consistency of performance • Durability - useful life of the product/service • Perceived Quality - indirect evaluation of quality (e.g. reputation) • Service after sale - handling of customer complaints or checking on customer satisfaction

11. 8 Dimension of Quality • Performance - First on the list is performance, which refers to the primary operating characteristics of a product. For an automobile, these would be traits like acceleration, handling, cruising speed, and comfort; for a television set, they would include sound and picture clarity, color, and ability to receive distant stations. • Aesthetics - how a product looks, feels, sounds, tastes, or smells — is clearly matters of personal judgment, and reflections of individual preferences. In fact, the marketing concept of “ideal points” — those combinations of product attributes that best match the preferences of a specified consumer — was originally developed to capture just this dimension of qualityServiceafter sale - handling of customer complaints or checking on customer satisfaction

12. 8 Dimension of Quality 3. Special features - . Features are the “bells and whistles” of products, those secondary characteristics that supplement the product’s basic functioning. Examples include free drinks on a plane flight, permanent press as well as cotton cycles on a washing machine, and automatic tuners on a color television set. In many cases, the line separating primary product characteristics (performance) from secondary characteristics (features) is difficult to draw. Features, like product performance, involve objective and measurable attributes; their translation into quality differences is equally affected by individual preferences. The distinction between the two is primarily one of centrality or degree of importance to the user 4. Conformance - A related dimension of quality is conformance, or the degree to which a product’s design and operating characteristics match pre-established standards. Both internal and external elements are involved. Within the factory, conformance is commonly measured by the incidence of defects: the proportion of all units that fail to meet specifications, and so require rework or repair

13. 8 Dimension of Quality 5. Reliability - It reflects the probability of a product’s failing within a specified period of time. Among the most common measures of reliability are the mean time to first failure (MTFF), the mean time between failures (MTBF), and the failure rate per unit time. Because these measures require a product to be in use for some period, they are more relevant to durable goods than they are to products and services that are consumed instantly. Japanese manufacturers typically pay great attention to this dimension of quality, and have used it to gain a competitive edge in the automotive, consumer electronics, semiconductor, and copying machine industries. 6. Durability - Durability, a measure of product life, has both economic and technical dimensions. Technically, durability can be defined as the amount of use one gets from a product before it physically deteriorates 7. Perceived Quality - indirect evaluation of quality (e.g. reputation) 8. Service after sale - handling of customer complaints or checking on customer satisfaction

14. What is ISO all about? What is ISO? ISO stand for International Organization for Standardization and is the most established quality framework in the world. ISO is a Non-profit Organization and established in 1947. The head office is base on Geneva, Switzerland, total over 170 member countries in the world. ISO 9001 helps you to run your business more efficiently and effectively as well as meet your customers requirements. It also help to control company in more systematic way and ensure continual improvement through the corrective and preventive actions. Virginia EMS Conference

15. What is ISO all about? Why implement ISO 9001:2008? Experience shows that business that lead in quality are no longer dependent on competing on price. in the customer's eyes, achievement of the ISO 9001 standard add value to the company and services. It is a testimony that saves one having to prove the quality standards to discriminating customers Virginia EMS Conference

16. Quality trends -TODAY ISO 9000:2005 refers to both a family of three related standards and to one of the standards in that family. The purpose of this family is “to assist organizations, of all types and sizes, to implement and operate effective quality management systems” and consists of three standards: quality management vocabulary, requirements, and guidelines for performance. • ISO 9000: Quality management systems—Fundamentals and vocabulary, provides the fundamentals and terminology of quality management systems. • ISO 9001: Quality management systems—Requirements, specifies the needed requirements for an organization to provide products that aim to enhance customer satisfaction. • ISO 9004: Quality management systems—Guidelines for performance improvements, suggests ways to improve organizational performance

17. Benefits of Quality • Higher customer satisfaction • Reliable products/services • Better efficiency of operations • More productivity & profit • Better morale of work force • Less wastage costs • Less Inspection costs • Improved process • More market share • Spread of happiness & prosperity • Better quality of life for all.

18. Effects of Poor Quality • Low customer satisfaction • Low productivity, sales & profit • Low morale of workforce • More re-work, material & labour costs • High inspection costs • Delay in shipping • High repair costs • Higher inventory costs • Greater waste of material

19. Cost Of Poor Quality • Prevention costs are the costs of all activities specifically designed to prevent poor quality in products or services. Examples are the costs of quality planning, training programs, and quality improvement projects. • Appraisal costs are the costs associated with measuring, evaluating, or auditing products or services to assure conformance to quality standards and performance requirements. These include the costs of inspection, testing, product or service audits, process audits, and calibration of measuring and test equipment. • Failure costs are those costs resulting from products or services not conforming to requirements or customer needs. They are usually divided into two types, internal and external. a) Internal failure costs occur prior to delivery or shipment of the product or furnishing of a service to the customer, such as the costs of scrap, rework, material review, and so on. b) External failure costs occur after delivery of the product and during or after furnishing of a service to the customer. Examples include the costs of processing customer complaints, customer returns, warranty claims,andproduct recalls.

20. ISO 9001:2008 Requirements This document is the set of requirements that organizations must satisfy in order to achieve ISO 9001 registration. Such registration is required in some industries and very highly regarded in many others. Over 140 countries have ISO 9001 registration programs. Many people inadvertently refer to this key document as “ISO 9000:2008.” (Remember: ISO 9000 refers to a family of three documents, and also to the Vocabulary document; ISO 9001 refers to the requirements document.) The standard has eight major parts, or clauses.

23. ISO 9001:2008 Requirements 1.Scope. This tells what organization(s), location(s), process(es), product(s), and so on, are covered. 2. Normative references. These cite other standards which, by being listed, constitute provisions of the ISO 9001 standard. 3. Terms and definitions. Here, reference is made to ISO 9000, which contains all definitions applicable to ISO 9001. 4. Quality management system 4.1 General requirements 4.2 Documentation requirements 5. Management responsibility 5.1 Management commitment 5.2 Customer focus 5.3 Quality policy 5.4 Planning 5.5 Responsibility, authority and communication 5.6 Management review

24. ISO 9001:2008 Requirements 6. Resource management 6.1 Provision of resources 6.2 Human resources 6.3 Infrastructure 6.4. Work environment 7. Product realization 7.1 Planning of product realization Part II.C 7.2 Customer-related processes 7.3 Design and development 7.4 Purchasing 7.5 Production and service provision 7.6 Control of monitoring and measuring devices

25. ISO 9001:2008 Requirements 8. Measurement, analysis and improvement 8.1 General 8.2 Monitoring and measurement 8.3 Control of nonconforming product 8.4 Analysis of data 8.5 Improvement

26. ISO14001 : 2004 Requirement ISO 14000 is a series of documents relating to the implementation of an Environmental Management System (EMS). ISO 14000 Family of Standards ◦ISO 14001:2004 - The requirements of an EMS ◦ISO 14004:2004 - EMS Guidelines ◦ISO 14005:2010 - Guidance on a phased approach What is an EMS? (Environmental Management System) An Environmental Management System (EMS) determines and continuously improves an organizations' environmental position and performance. It follows an outline and is managed like any other facet of a business; quality, safety, etc, and provides a framework for implementing improvements or to meet regulatory requirements. Ideally, it is built on an existing quality management system. (ISO 9001).

27. ISO 14001: 2004 Requirements

28. ISO 14001: 2004 Requirements Purpose of ISO14001

29. ISO 14001: 2004 Requirements

30. ISO 14001: 2004 Requirements

31. ISO 14001: 2004 Requirements

32. TQM What is TQM??? Is the integration of all functions and processes within an organization in order to achieve continuous improvement of the quality of goods and services. The goal is customer satisfaction. A philosophy that involves everyone in an organization in a continual effort to improve quality and achieve customer satisfaction. T Q M Continuous improving Involvement of everyone Customer satisfaction

33. TQM • TOTAL : Made up of the whole • QUALITY : degree of excellence a product or service provides • MANAGEMENT : Act, Art or manner of planning,controlling,directing….. Therefore, TQM is the art of managing the whole to achieve excellence. TQM goals “Do the Right things right the first time, every time”

34. Evolution of TQM Inspection  Identifying non-conformities. Quality Control  Process performance data, Quality planning, Statistical tools. Control instrumentation. Quality Assurance  Quality manual , system certification, quality costs, documentation.

35. Basic concept of TQM • Customer focus • Continuous Process improvement – Kaizen • Employee Empowerment – Everyone is responsible for quality • Quality is free – focus on defect prevention rather than defect detection for it is always cheaper to do it right the first time • Benchmarking – Legally stealling other people’s ideas • Customer- Supplier Partnerships • Management by fact,..by number…by data…

36. Culture changes for TQM

37. Characteristics of TQM • Is a management philosophy to guide a process change • Is a customer-oriented management system • Starts at the top management; it requires the leadership of top management & continuously involvement • Is a team work; it requires organization wide involvement. • Involve planning • Is a strategy for continuously improving performance at all levels & in all areas of responsibility. • Is about achieving result by produces based approach • Recognizes internal customer-supplier relationships.

38. TQM implementation • Begins with Sr. Managers and CEO’s • Timing of the implementation process • Formation of Quality council • Union leaders must be involved with TQM plans implementation • Everyone in the organization needs to be trained in quality awareness and problem solving • Quality council decides QIP projects.

39. Quality council • The quality council includes CEO and Senior managers of the functional areas -research,manufacturing,finance,sales ,marketing etc. and one co-ordinator. • Duties- To develop the Quality statements eg. Vision, Mission, Quality policy statements, Core values etc. • To develop strategic long-term plans and annual quality improvement programme. • Make a quality training programme • Monitor the costs of poor quality. • Determine the performance measures for the organisation • Always find projects that improve the processes and produce customer satisfaction. • Establish work-group teams and measure their progress. • Establish and review the recognition and reward system for the TQM system

40. TQM implementation

41. Continuous Process improvement FEEDBACK O/P PROCESS People Equipment Method Environment Materials Procedures INPUT Materials Money Data,etc. OUTPUT Information Data Product Service,etc. CONDITIONS

42. Continuous Process improvement Five ways to Improve a Process • Reduce resources • Reduce errors • Meet or exceed expectations of internal/external customers • Make the process safer • Make the process more satisfying to the person doing it.

43. Empowerment • To invest people with authority –to tap the potential in every worker (avoid the wastage of unrealised capacity) • People have the ability,confidence and commitment to take the responsibility and ownership to improve the process, and initiate the necessary steps to satisfy customer requirements within well-defined boundaries in order to achieve organisational goals.

44. Customer Satisfaction Customer Satisfaction Whatever is critical to the customer must be critical to our business. Quality Delivery Price/Value Defects Cycle Time Cost Organization Goal

45. Customer Satisfaction • Customer is the Boss or’King’ • Customer dictates the market trends and direction • Customer not only has needs to be supplied( basic performance functions) • Also he ‘wants what he wants!’( additional features satisfy him and influence his purchase decision) • Hence the Suppliers and Manufacturers have to closely follow at the heel of the customer. What is customer satisfaction????? • Is it due to Product quality? • Is it due to pricing? • Is it due to good customer service ? • Is it due to company reputation? • Is it something more?

46. Customer Satisfaction Organizational Diagram CUSTOMERS Front-line Staff Functional Department Staff Sr. Mgrs CEO

47. Customer Type • External and Internal customers • External – current, prospective and lost customers • Internal – Every person in a process is a customer of the previous operation.( applies to design,manufacturing,sales,supplies etc.) [Each worker should see that the quality meets expectations of the next person in the supplier-to-customer chain ] • TQM is commitment to customer-focus - internal and external customers.

48. Customer/Supplier Chain What is the relationship between Customer & Supplier? • Questions asked by people to their internal customers • What do you need from me? • What do you do with my output? • Are there any gaps between what you need and what you get? • Good team-work and inter-Departmental harmony is required. Also the leaders role in supervising the internal customer-supplier chain.

49. Customer satisfaction/ dissatisfaction feedback • Customer feedback has to be continuously sought and monitored - not one-time only!( Pro-active! Complaints are a reactive method of finding out there is a problem) • Customer feedback can be relayed to Mfgr. • Performance comparison with competitors can be known • Customers needs can be identified • Relative priorities of quality can be obtained from the horses’ mouth! • Areas for improvement can be noted.

50. Customer feedback methods • Comment cards enclosed with warranty card when product is purchased. • Customer survey and questionnaire • Customer visits • Customer focus groups • Quarterly reports • Toll-free phones • e-mail, Internet newsgroups,discussion forums • Employee feedback • Mass customization.