TOTAL QUALITY MANAGEMENT

1. INTRODUCTION
2. DEFINITIONS
a) QUALITY
b) TQM
3. FUNDAMENTAL CONCEPTS
4. PROCESS APPROACH
5. COST OF QUALITY
6. 7 QC TOOLS
7. WASTE ELIMINATION
8. TQM MODELS
9. CONCLUSION
 TOTAL QUALITY
MANAGEMENT

S1 C1

S2 C2

Sn Cn

SUPPLIERS BUSINESS PROCESS CUSTOMERS

 QUALITY
1. Conformance to requirements
(specifications)
2. Freedom from deficiencies
3. Prevention of non – conformities
4. Customer satisfaction
5. Fitness for use
6. Value for Money
7. Avoiding loss to society
 TOTAL QUALITY MANAGEMENT
[TQM]
DEFINITION
1. Total Quality Management is an approach for
effective management of a business enterprise
through focus on its people and processes by
company wide customer – driven leadership.

KEY WORDS
1. Waste elimination Q
2.Customer focus
► Internal customer
► External Customer
C D
3. Continual Improvements
4. Data and facts based management
 FUNDAMENTAL
CONCEPTS
1. Commitment.
2. Customer Satisfaction.
3. Quality Losses.
4. Process Measurement.
5. Continuous improvement.
6. Participation by all.
7. Problem identification.
8. Corporate objectives and individual
attitudes.
9. Personal accountability.
10. Personal Development.
 QUALITY MANAGEMENT PRINCIPLES
[As they Appear in ISO 9000:2000]
PRINCIPLE 1:
CUSTOMER FOCUS
PRINCIPLE 2:
LEADERSHIP
PRINCIPLE 3:
INVOLVEMENT OF PEOPLE
PRINCIPLE 4:
PROCESS APPROACH
PRINCIPLE 5:
SYSTEM APPROACH TO MGT
PRINCIPLE 6:
CONTINUAL IMPROVEMENT
PRINCIPLE 7:
FACTUAL APPROACH TO DECISION MAKING
PRINCIPLE 8:
MUTUALLY BENIFICIAL SUPPLIER RELATIONS
 PROCESS

CONTROLS

INPUTS OUTPUTS
PROCESS

RESOURCES
UNIT OF SUPPLY CHAIN

INPUTS OUTPUTS

PROCESS
ADDING CUSTOMER
SUPPLIER VALUE
TO CUSTOMER

FEEDBACK FEEDBACK
 CHANGING ROLE OF PROCESS
OWNER

INPUT FROM AS CUSTOMER

SUPPLIER
PROCESS OWNER
AS CUSTOMER
OUT IN
AS SUPPLIER PUI PUT

PROCESS OWNER

OUTPUT

AS SUPPLIER
TO

CUSTOMER
 PREVENTIVE APPROACH

1 – 10 – 100 RULE

1 2 3

1 10 100
 COST OF QUALITY

ALL EXPENSES INCURRED TO

ENSURE QUALITY AS WELL AS
EXPENSES A COMPANY IS FORCED
TO SPEND AS A RESULT OF FAILURE
TO MEET QUALITY REQUIREMENTS
 QUALITY COSTS
QUALITY COSTS

COST OF FAILURE
COST OF CONTROL OF CONTROL

QUALITY COSTS
SEGMENTS

PREVENTION COSTS

COST OF CONTROL
APPRAISAL COSTS

INTERNAL FAILURE COSTS

COST OF FAILURE OF
CONTROL
EXTERNAL FAILURE COSTS
 7 QC TOOLS

1. Check sheet
2. Flow chart
3. Histogram
4. Controls charts
5. Pareto diagram
6. Cause and effect diagram
7. Scatter diagram
 CHECK SHEET
SL.N TYPE OF DATE TOTAL
O DEFECT DEFEC
1 2 3 4 5 6 - - - - - 30 31 T

1 Dents 1,1,1 1,1 1 - - - - - - - - - - - 18

2 Parts 1 - - 1 - - - - - - - - - - 10
Missing

3 Parts - - 1 - - - - - - - - - - - 8
Broken

4 Paint 1,1 1 1 - - - - - - - - - - - 30
Defects

5 Scratche - 1 - - - - - - - - - - - - 05
s

6 Misc - - 1 - - - - - - - - - - - 03
Defects
 HISTOGRAM
v a ria tio n in s h a ft D ia m e te r

250

225

210
200

Total Number of Analysed : 1103

182
Numbar of shafts (Frequency)

150

160
100
108

90
50

60
46

20
-6 -4 -2 0 2 4 6 8 10
D e v ia ti o n in M ic ro n fro m N o m in a l D i a m e te r
 PARETO ANALYSIS
Sl.No Type of Total
Defects Defects
1 Dents 18
2 Parts Missing 10

3 Parts Broken 8

4 Paint Defects 30

5 Scratches 05
6 Misc Defects 03
 PARETO ANALYSIS

Sl.No Type of Total

Defect Defect
1 Paint Defects 30

2 Dents 18
3 Parts missing 10
4 Parts broken 8
5 Scratches 5
6 Misc defects 3
 PARETO ANALYSIS
Sl.N Type of No of Cause % of Cum %
o Defect Defects No of Total of total
Defects defects defects

1 Paint 30 30 40.54 40.56

Defect
2 Dents 18 48 24.32 64.86
3 Parts 10 58 13.51 78.37
missing
4 Parts 08 66 10.81 89.18
broken
5 Scratches 05 71 6.75 95.95
6 Misc 03 74 4.05 100
defects
 A s s e m b ly D e fe c ts - F in a l In s p e c tio n D a ta
80

70

60

50
Number Of Timers The Defects Occurs

40

30
Three Defects account for 80% of Problem
30

20
20

10

0 9
10

P a in t D e fe c t s D e n t s P a rt s M is s in Pg a rt s B ro k e n S c re t c h e s M is 8c . D e fe c t s 7
T y p e s o f D e fe c ts
 N o n - S ta r tin g o f T w o W h e e le r s
120

100

80
Number ofTimes Problems Occurs

60
Three Causes account for over 82% Problems

40
40

20
30
25
0
Fuel Ig n it io n S p a rk p lu gC a rb u ra t o r C h o k e M a g n e t o E x h a u s t O t h e rs
8
T yp e s o f P ro b le m s 4 3 2 3
 Cause Effect Diagram – Daily Example Unclear TV Picture

Receiver Tuning

Loose contact Not tuned

Picture tube defective

Defective tuner
Booster defective
Poor Scanning

TV picture
Not clear
Defective Stabilizer
Poor Satellite link
Voltage
fluctuation Poor weather

Interference Poor transmission

Power Transmission
 SCATTER DIAGRAM

Material: ABS

10
% Rej Short Mould

1
120C 130C 180 200C 225C

0.1
Temperture
 FIVE WHYS

Problem: Malfunction of digital controller for NC machine

Why Defective printed circuit board

Why Lack of cooling

Why Lack of air

Why Lack of pressure

Why Dust on filter

Solution: Clean filter every month

 CRITICAL ACTIVITY CHART
A simplified Critical Activity chart of a typical pickling section is shown in the example. In fact, to
make it simple only one or two entries are made in each box.

INPUTS WORK ACTIVITY OUTPUTS

► Material ► To Pickle Components ► Pickled components
► Chemicals ► ……………………….. ► Production Reports
► …………… ► ……………………..

SUPPLIERS TASK DETAILS CUSTOMERS

External ► Arrange Material In Bins External
► Chemical Suppliers ►Check Temperature ► None directly
► …………………… ► ……………………..

Internal Internal
► Press Shop ► Paint Shop
► Stores ► …………..
► …………….

PROBLEMS WITH INPUTS PROBLEMS WITH PROCESS PROBLEMS WITH OUTPUTS

► Material too rusty
►Late Receipt of material
► …………………
► Crane not Reliable ► Paint shop not satisfied with rust
► Cages and Bins insufficient removal
►…………………….. ► Progress Section Does not get
reports on time
► ………………………….
 TQM MODEL
CUSTOMER FOCUS PROCESSES
TECHNOLOGY

MACRO

EMPOWERMENT
MGT DRIVEN
INCREMENTAL
TOP DOWN
IMPROVEMENT
EXTERNAL
ENABLERS

INTER
CUSTOMER
CUSTOMER
FOCUS

PEOPLE
FOCUS
[BM]
BOTTOM UP
KEY PROCESS
PEOPLE
DRIVEN
INNOVATION

ENRICHMENT
MICRO

VISION PURPOSE VALUES

 FULLY INTEGRATED QUALITY
STRATEROY
1. LEADERSHIP AND 4. RESOURCE MANAGEMENT
STRATEGIC DIRECTION

 SYSTEMS AND INFORMATION

 DECISION MAKING
 MANAGEMENT LEVELS
 COMMUNICATION
 TOP TEAM
 MARKETING STRATEGY
 TECHNOLOGY
BREAKTHROUGH
 FINANCIAL ESOURCES
 SUPPLIERS, EQUIPMENT ETC.

5. CUSTOMER FOCUS
2. PEOPLE MANAGEMENT
 RELIABILITY
 EMPLOYEE INVOLVEMENT  TEGIBILITY
 COMMUNICATION  RESPONSIVENESS
 PERSONNEL ISSUES
 FLEXIBILITY
 ORGANISATIONAL DESIGN
 ACCESSIBILITY
 MANAGEMENT STYLE
 TRUST
 TRAINING
 RECRUITMENT
 EMPATHY
 STAFF SURVEYS
 REMUNERATION
 PERFORMANCE
MANAGEMENT SUMMARY

3. PROCESS MANAGEMENT
 PEOPLE ARE KEY TO QUALITY
 PROCESS OWNERSHIP  TECHNOLOGY IS THE FACILITATOR
 PROCESS  PROCESSES SHOULD ADD VALUE
IMPROVEMENT  INNOVATIONS KEEPS YOU AHEAD
 RE-ENGINEERING OF THE GAME.
 INTERNAL CUSTOMER-
SUPPLIE RELATIONSHIP
 BUSINESS

PR CU
EN E

FO
IV O M

O S
CE
DR ST

SS
CU
LEADERSHIP

PEOPLE
FOCUS

EFFECTIVENES
S
 EFQM – MODEL FOR
BUSINESS EXCELLENECE

PEOPLE
PEOPLE
SATISFACTION
MANAGEMENT

POLICY CUSTOMER
BUSINESS
LEADERSHIP STRATEGY PROCESSES SATISFACTION
RESULTS

IMPACT ON
RESOURCES SOCIETY

ENABLERS RESULTS
 TQM MODEL OF
ALCOA

MANAGING
FOR QUALITY

CONTINUOUS EMPLOYEE
IMPROVEMENT INVOLVEMENT

CUSTOMER

ALCOA
 TQM MODEL OF AT&T

Supplier Process Management Customer

Partnership And improvement Focus

Supplier Process Customer

People,
Leadership and involvement
 FOCUS ON
CUSTOMER

TQM
ACTIVITIES

CONTINUOUS TOTAL
IMPROVEMENT PARTICIPATION

SOCIETAL
NETWORKING