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WHAT IS QUALITY - PowerPoint PPT Presentation

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  1. WHAT IS QUALITY • Conformance to requirements or specifications – Crosby(1979) • Quality is fitness for use – Juran(1974) • Quality of Product or Service is the fitness of that product or service for meeting or exceeding its intended use as required by the Customer • Totality of features and characteristics of a product or service that can bear on its ability to satisfy stated or implied needs – ISO 9000 Hence, Quality is Customer Centric. KRR TQM/SESSION2

  2. QUALITY CHARACTERISTICS Structural/ Abstract/Sensory Physical characteristics Characteristics eg., Length,Weight,Strength eg., taste,smell, Viscosity,etc. fragrance,beauty, etc. Quality = Perceived Value /Cost KRR TQM/SESSION2

  3. Quality: Then and Now Old Quality is • Technical • About Products • Led by experts • For Inspectors • High grade • About Control • About Specifications New Quality is • Strategic • About organisations • Led by Management • For everyone • Appropriate grade • About Improvement • About Customer Satisfaction KRR TQM/SESSION2

  4. Changing domain of TQM • Shop floor activity • Production engineer Inspection • Production department • Quality Department SQC • Engineering domain • HR domain Change Mgt • Top Management initiative. 3rd party QA KRR TQM/SESSION2

  5. Why Quality is important inChanging Business Conditions? • Competition • Changing Customer • Changing Product Mix • Product Complexity • Higher levels of Customer expectations • Consumerism and emergence of Quality Assurance KRR TQM/SESSION2

  6. COMPONENTS OF QUALITY(For Manufacturing industries) PRODUCT FEATURES (increases Perceived Value) • Performance • Reliability • Durability • Ease of use • Serviceability • Esthetics • Availability of options and expandability • Reputation FREEDOM FROM DEFECIENCY (reduces Cost) • Product free from defects and errors at delivery, during use,and during servicing • Sales, billing and other business processes free of errors KRR TQM/SESSION2

  7. COMPONENTS OF QUALITY(For Service industries) Service features (increases Perceived Value) • Accuracy • Timeliness • Completeness • Friendliness and Courtesy • Anticipating customer needs • Knowledge of server • Esthetics • Reputation Freedom from Deficiencies (Reduces Cost) • Service free of errors during original and future service transactions • Sales, billing and other business processes free of errors KRR TQM/SESSION2

  8. DEFECT A Defect is a departure of a quality characteristic from its intended level or state that occurs with a severity sufficient to cause an associated product or service not to satisfy intended normal or reasonably foreseeable usage requirements- ANSI(American National Standards Institute)



  11. Characteristics of Quality • Variables- Characteristics that are measurable and are expressed on a numerical scale. Example: Diameter of a bearing expressed in ‘mm’., density of liquid in gm/cm3 • Attributes-Characteristics that is classified as either conforming or nonconforming to a stipulated specification(it can’t be measured on a numerical scale)Example: Smell of a cologne KRR TQM/SESSION2

  12. TOTAL QUALITY MANAGEMENT • Total quality management (TQM) is a management philosophy and strategy designed to involve all members of an organization in the process and responsibility for producing quality products and services. • TQM is not a Jargon or Slogan. • It is an Umbrella of various quality ‘initiatives’ . • It is a philosophy that bonds together the use of quality improving effects • It is an Organizational effort towards ‘Customer Delight’ KRR TQM/SESSION2

  13. Ten Mantras for Total Quality Management • Quality is never an accident, it is always the result of untiring and intelligent effort. • Quality is like a prayer to God, which never comes out without hard work and devotion • Quality is everybody’s business • Quality begins with the cleanliness of the workplace • Take care of Quality, Quantity will take care of itself • Make it right for first time and every time • Quality is achieved through teamwork • Document is dependable but not the memory • Quality begins and ends with education • Quality is the attribute that a customer usesto evaluate a product or service KRR TQM/SESSION2

  14. TOTAL QUALITY MANAGEMENT • Total quality management is an approach to doing business that attempts to maximize the competitiveness of an organization through the continual improvement of the quality of its products, services, people, processes and environments. KRR TQM/SESSION2

  15. U.S. Department of Defense Definition • TQM consists of continuous improvement activities involving everyone in the organization – Managers and Workers – in a totally integrated effort toward improving performance at every level. KRR TQM/SESSION2

  16. Quality is Customer satisfaction Customer • ExternalCustomers:Consumer,Intermediate processors, Merchants,Govt. regulatory bodies etc. • Internal Customers: Co. divisions providing components for assembly,other departments that are effected(eg, purchasing which receives specification from engineering) KRR TQM/SESSION2

  17. An American automobile company and a Japanese auto company decided to have a competitive boat race on the Detroit River. Both teams practiced hard and long to reach their peak performance. On the big day, they were as ready as they could be.The Japanese team won by a mile. KRR TQM/SESSION2

  18. The American team became discouraged by the loss and their morale sagged. Corporate management decided that the reason for the crushing defeat had to be found. A Continuous Measurable Improvement Team of "Executives" was set up to investigate the problem and to recommend appropriate corrective action. The team hired a consultant.Their conclusion: The problem was that the Japanese team had 8 people rowing and 1 person steering, whereas the American team had 1 person rowing and 8 people steering. The American Corporate Steering Committee immediately hired a consulting firm to do a study on the management structure. KRR TQM/SESSION2

  19. After some time and billions of dollars, the consulting firm concluded that "too many people were steering and not enough rowing." To prevent losing to the Japanese again next year, the management structure was changed to "4 Steering Managers, 3 Area Steering Managers, and 1 Staff Steering Manager" and a new performance system for the person rowing the boat to give more incentive to work harder and become a six sigma performer. "We must give him empowerment and enrichment." That ought to do it.The next year the Japanese team won by two miles!!The American Corporation laid off the rower for poor performance, sold all of the paddles, cancelled all capital investments for new equipment, halted development of a new canoe, awarded high performance awards to the consulting firm, and distributed the money saved as bonuses to the senior executives. KRR TQM/SESSION2

  20. Exercise 1 Kg (1000 gm) Pack of Nandini Ghee = Rs. 400/- To please customer and improper quality control Each pack contains 20 gm extra. • 1 Mini Nandini van carries 25 boxes of ghee, with each box= 100 1kg packs. Capacity of van is 26 Boxes. • Nandini distributes ghee in Udupi district with 15 vans going in different areas. • Loading & Unloading charges = Rs. 30/Box • Material charges(container) = Rs. 8/Kg Calculate additional cost due to higher grade. KRR TQM/SESSION2