Total Quality Management

[Q 1.] Quality is never an accident, it is the result of intelligent efforts. Explain with classification of Product Quality. Ans:
Quality is a combination of characteristics pertaining to the manufacture of the product. A good quality item is one which conforms to some standard specification. These specifications are determined by the specifications of the consumers and also by the availability and costs of processes and materials. To most people quality is variable. It is subjectively judged bcoz it deals with the relative goodness of a product. Quality is thus subjective and vaguely measurable. The late Dr. W Edwards Deming said: Good quality does not necessarily mean high quality. It means a predictable degree of uniformity and dependability with a quality suited to the market. According to Philip Crosby, Quality is defined as Conformance to requirements Quality What it stands for? 1. 2. 3. 4. 5. 6. 7. Q U A L I T Y : Quest for excellence : Understanding customers needs : Action to achieve customers appreciation : Leadership determination to be a leader : Involving all people : Team spirit to work for a common goal : Yardstick to measure progress

QUALITY CLASSIFICATION Quality is a relative term. It is generally stated with reference to the end use of a product. A product is said to be a good quality if it works well in a particular situation for which it is meant. Quality may be classified on following: 1. Performance 2. Features steering 3. Reliability 4. Conformance 5. Durability 6. Serviceability 7. Aesthatics sound. : How well the product performs the customers intended use. : The special characteristics appeal to customers. Ex. Power : The likelyhood of breakdown, or malfunction : Meeting the customers expectations : The length of time before needing to be repaired or replaced. : The speed, cost and convenience of repairs and maintenance. : The effect on human senses the look, feel, taste, smell or

[Q 2.] Treat Customer like a King. Explain with the dimensions of the quality of service? Ans: Dimensions of Service Quality
1. Reliability 2. Responsiveness 3. Competence 4. Access 5. Courtesy 6. Communication 7. Credibility 8. Understanding 9. Security 10.Tangibles QUALITY CONTROL Places emphasis on inspection and checking. Take out the scrap. The role of the inspector is to check the work of others. FOCUS: The amount of work. QUALITY ASSURANCE Work to systems and procedures. Design quality in where possible and follow a particular method. This helps consistency and conformance. FOCUS: The way work is done. QUALITY MANAGEMENT Everyone is responsible for the quality of their own work, i.e.; check own work before passing the work on. This implies doing the right thing and doing it right first time. (PS the customer sets the standard.) FOCUS: The results of what is done.

 How to get right quality As per Dr Edward Deming : Quality comes not from inspection but from improvement of the process i.e. Right at first time. If products are of high quality then there should not be a need of inspection. Therefore inspection of finished goods means just a rework. The problem can be eliminated at first stage then it is possible that the final product will be defect free. ALSO TRY THESE !! For continuous improvement

PLAN ACT CHECK DO

WHAT YOU MEASURE.. Try this!!

Whatever gets measured, gets improved

Leads to QUALITY PRODUCTIVITY COSTS

Always aim to satisfy all three.

[Q 3.] Define the term productivity. Explain Productivity with a concept of Basic Work Content. Ans: Productivity: (diagram Chpt. 2) Work Content gets added to Basic work content by :
A: Inefficient Design and Specifications. A 1. Bad design of product. Prevents use of most economic processes A 2. Lack of Standardisation Prevents use of high production processes A 3. Incorrect Quality Standards. Cause unnecessary work A 4. Excess Material Design demands removal of Excess Material B : Inefficient Methods of manufacture or operations. B 1. Wrong Machine used B 2. Process not operated correctly or in bad condition B 3. Wrong Tools used. B 4. Bad Layout. Causing wasted movements B 5. Operative's bad working methods C . Inefficient ways of managing Human Resource. Indicators of poor management Rate of Absentism Rate of Attrition Stress & Conflict Rate of Accidents Rate of Rejections Poor customer service Poor team development Poor Job fit and employee hiring practices

[Q 4.] Explain in detail the concept of Total Quality Management with the Pillars of TQM Ans:
TQM is a technique developed by Edward Deming and other management experts to improve the efficiency of flexible work teams. Total quality management is defined as an integrated approach in delighting customers (both internal and external) by meeting their expectations on a continuous basis, through everyone involved with the organization, working on continuous improvement along with proper problem solving methodology. 1. Broad Goal of TQM is continuous improvement. 2. Aims to impress upon workers the importance of continuously improving the efficiency of the production process in order to a) Reduce Cost b) Improve Quality c) Reduce Waste 3. Workers in a TQM system are expected to make suggestions for improving all aspects of the work process and are expected to share their specialized knowledge with management so that it can be communicated through out the organization. TQM is a rational technique which is driven by hard statistical data on the need for improvement. Pillars of TQM: 1. 2. 3. 4. 5. 6. 7. Customer Satisfaction Continuous improvement Company-wide quality culture Leadership & strategic planning Employee involvement and focus Stakeholder involvement and Focus Top management commitment

[Q 5.] What is Cost of Poor quality (COPQ)? Explain in detail what is Good cost, Bad cost and Ugly cost. Ans:
There are many definitions for COPQ from various perspectives, but a simple way would be defined as :Cost incurred due to a defect which is known or has become repeatable or not attended , including the wastage of resources associated with it.

Cost Components 1) Good Cost - PREVENTION COSTS 2) Bad Cost - APPRAISAL COSTS 3) Ugly Cost - FIELD FAILURE COSTS - Internal / External 1) Prevention Costs:
These are the good costs since such expenditures are meant to prevent errors from being made or help employees do their jobs right every time. Actually they are more like investments rather than costs. Types of Prevention Costs Preventive action Proactive in nature Implementing improvement process Quality related Training Job related training Development and implementation of a data collecting and reporting system Vendor surveys Process capability studies Design concept reviews Process control and in process inspection

2) Appraisal Costs:
These are the bad costs, expended to determine if an activity was done right every time. Appraisal costs are incurred just to segregate bad products from good ones. These do not however prevent the errors from recurring. Types of Appraisal Costs Cost of running an inspection set-up Inspection /quality assurance related training.

Product inspection Field performance testing Customer satisfaction audit Approval signatures on a document Second level managers review of first level management decision.

3a) Internal Field Failure Costs:

These are the costs borne by a company as a result of error detected before the output reaches the customer. In other words , it is the cost the company incurs in rectifying and error before the product or service is accepted by the customer. These costs are incurred because someone/ everyone did not do their jobs properly every time. Types of Internal Field Failure Costs Cost of In process scrap and rework Re-typing of letter and re-doing of reports Trouble shooting and repairing Engineering changes Down grading products due to non conformance to original specification Additional inventory required to support process yields and rejected lots Overtime.

3b) External Field Failure Costs:

These are the costs incurred by a manufacturer because the external customer has been supplied with an unacceptable product or service. It is the cost incurred by the company in the field because the appraisal system did not detect all the errors before delivery to the customer Types of External Field Failure Costs: Cost of the customer rejected service or product Product liability suits Complaint handling Warranty administration Maintenance of field service centers Training of repair personnel Stocking spare parts to support field repair

IND IRE
COST OF DOING RIGHT THINGS RIGHT 1ST TIME, EVERYTIME

COST OF NOT DOING PREVENTION COSTS APPRAISAL COSTS DOING (GOOD ) (BAD ) RIGHT THINGS RIGHT

FIELD FAILURE COSTS INTERNAL FAILURE COSTS COSTS L

EXTERNAL

DIRECT - INCURRED BY COMPANY

[Q 6.] Define Quality Circle and explain its objectives in detail. Ans: Quality Circles:
Quality Circle is a small group of employees doing similar work who work in different departments. They voluntarily meet together on a regular basis to identify improvements in their respective work areas using proven techniques. They analyze and solve work related problems coming in the way of achieving and sustaining excellence leading to mutual improvement of employees as well as

the organization. It is a way of capturing the creative and innovative power that lies within the work force. Quality Circles can be a most powerful method in solving problems and effecting significant efficiencies in an organizations operations. Dramatic gains will result by putting these people on a team.

Basic Idea
1. 2. 3. 4. 5. 6. It is a form of participative management. It is a TQM as well as HRD technique. It improves productivity of departments as well as organizations. It is a problem solving technique. It will improve quality of the product. It improves the level of motivation of employees.

Philosophy of Quality Circle

Respects human dignity and motivates employees at grass root levels to use their brain power along with their physical power.

Definition
A group of workers from the same area, who usually meet for an hour each week to discuss problems at work areas, investigate causes, recommend solutions, and take corrective actions when authority is divested in them.

Objectives of Quality Circles

1. 2. 3. 4. 5. 6. Change in attitudes of the participants as well as management. Self development of the employees. Development of team spirit and participative attitude. Improvement in organizational culture Quality is constantly in everyones mind. Improvement in Productivity.