Ba9203 – TOTAL QUALITY Management

Question Paper with Solution

UNIT 1
PART – A

1. Differentiate Vision and Mission Statements (April / May 2011 )

Definition:
A short declaration of what an
organization aspires to be in the
future. It is an ideal that an
organization continually strives
to achieve. It is timeless,
inspirational and becomes deeply
shared with the organization.
Eg: To continuously enrich
knowledge base for practioners in
mobility industry and institutions
in the service of
humanity.(Society of Automotive
Engineers.
Definition:
The mission statement answers the following questions:
• Who we are?
• Who are our customers?
• What we do?
• How we do it?
The mission gives the guide map, milestones for achieving the vision.
Eg Mission statement of ITC ltd:
• Concern for the ultimate customers- millions of customers
• Concern for the intermediate customers- the trade
• Concern for the suppliers – the sources of raw materials and ancillaries
• Concern for the employees – the most valued asset.
• Concern for the competitors – wishing them well as healthy competition
ultimately benefits the customers
• Concern for the shareholders- the investing public
• Concern for the national aspiration –India ‘s future.

2. State the Critical dimensions of Service Quality (April / May 2011 )

Service Dimensions
a. Reliability
b. Responsiveness
c. Competence
d. Access
e. Courtesy
f. Communication
g. Creditability
h. Understanding
i. Security
j. Tangibles

3. What is Quality Policy (June 2010)

Quality Policy Statement
It’s a guide for everyone in the organization as to how they provide products and service to the
customers. It is written by the CEO with the feedback from the workforce and be approved by the
quality council. It is important requirement of ISO 9000 quality systems
Eg : Quality policy of Xerox Company.
Xerox is a quality company. Quality is the basic business principle for Xerox. Quality means
providing our external and internal customers with innovative products and services that fully satisfy
their requirements. Quality is the job of every employee.

4. What are the Obstacles of Total Quality Management (January 2011)

a. Lack of Management commitment
b. Inability to change organizational culture
c. Improper Planning
d. Lack of continuous training and Education

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 e. Incompatible organizational structure and isolated individuals and departments
f. Ineffective measurement techniques and lack of access to data and results
g. Paying inadequate attention to internal and external customers
h. Inadequate use of empowerment and teamwork
i. Failure to continually improve

5. Is Quality a source of value ?(Nov / Dec 2011)

Value-based view. Quality depends on the amount the customer is willing to pay for it
• It is Sustained Performance and Customer Responsiveness ( Microsoft)
• Thus Quality is “ The ability of a product or service to meet the customer needs.”

6. What is quality control (June 2010)

Quality Control (QC) is a system of routine technical activities, to measure and control the
quality
of the inventory as it is being developed. The QC system is designed to:
(i) Provide routine and consistent checks to ensure data integrity, correctness, and
completeness;
(ii) Identify and address errors and omissions;
(iii) Document and archive inventory material and record all QC activities.

7. What is a mission statement?

Definition:
The mission statement answers the following questions:
• Who we are?
• Who are our customers?
• What we do?
• How we do it?
The mission gives the guide map, milestones for achieving the vision.

8. What do you mean by customer perceived Quality( January 2011)

Manufacturing Dimensions
a. Performance
b. Features
c. Reliability
d. Conformance
e. Durability
f. Serviceability
g. Aesthetics
h. Perceived quality

9. What is cost of quality(January 2012)

Quality cost are defined as those costs associated with the non-achievement of products / service
quality as defined by the requirements established by the organization and its contract with the
customer.
Quality cost is the cost of poor products or services

10. Define Quality

• Fitness for intended use(Joseph Juran)
• Conformance to specifications. (Philip Crosby).
ISO definition of quality is as follow
“Quality is the totality of characteristics of an entity that bear on its ability to satisfy stated and
implied needs.”

11. Distinguish between ‘internal customer’ and ‘external customer’.

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 An external customer exists outside the organization and can be defined in many ways- user, buyer and
influencer. He generally falls into one of these three categories: current, prospective or lost customer.
Every function within the organization- engineering, production, order processing etc; has an internal
customer. Every person is considered a customer of the preceding operation. For example, manufacturing
is a customer for purchasing and dispatching is a customer for packaging.

12. What are the three levels of quality in the Kano model of customer satisfaction?
• Basic quality
• Performance quality
• Excitement quality
The products corresponding to these three levels were termed as ‘Dissatisfies’, ‘satisfiers’ and
‘delighters’/ ‘exciters’ respectively in Kano’s model.

13. What is the importance of customer retention?

• It costs a company six times more to sell a product to a new customer than to sell to an existing
one.
• Loyal customers generate more revenue and are also cheaper to maintain.
• Customer loyalty facilitates cross selling/ up selling of a company’s other products and services
and also acts as an effective barrier to the entry of competition.

14. What are the major dimensions of product quality?

• Performance
• Features
• Usability
• Conformance to standards/ specifications
• Reliability
• Durability
• Maintainability etc;

15. What is Quality Equation ?

Quality can be quantified as follows
Q=P/E
Where Q is quality
P is Performance
E is Expectations
Q › 1.0 then the quality of the product is good.

16. What are the elements of Quality Cost?(April / May 2011)

Cost area Description

Costs of control (Costs of Prevention Arise from efforts to keep defects from
conformance) costs occurring at all
Appraisal Arise from detecting defects via inspection,
costs test, audit
Costs of failure of control Internal failure Arise from defects caught internally and dealt
(Costs of non-conformance) costs with by discarding or repairing the defective
items
External Arise from defects that actually reach
failure costs customers

17. What are internal failure costs?

These are the costs required to identify, repair, replace or dispose off defective products/ services prior to
delivery to the customer.

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 18. What is appraisal cost ? give examples.

“ The Cost incurred in assessing that the products / services conform to the requirements”
Appraisal cost relate to testing, execution and examination to assess whether the specified quality is being
maintained

19. Why should suppliers be treated as partners?

Costs due to inferior materials/components from suppliers increase costs in the later stage of production.
Suppliers themselves are part of the whole system and hence should be treated as long-term partners.

PART – B

1. Explain the basic concepts and Characteristics of TQM?

ISO -
Total Quality Management (TQM) is the management approach of an organization,
centered on quality, based on the participation of all its members and aiming at long term success
through customer satisfaction and benefits to all members of the organization and society.

Indian Statistical Institute –

TQM is the integrated organizational approach in delighting customers both
internal and external by meeting their exceptions on a continuous basis through everyone
involved with the organization working on continuous improvements in all products, services and
process along with proper problem solving methodology
Characteristics of TQM
1. TQM is customer oriented
2. TQM is long term commitment for continuous improvement of all process
3. TQM is team work
4. TQM requires the leadership of the top management and continuous involvement.
5. TQM is a strategy of continuous improving performance at all levels and in all areas of
responsibility.

6 Basic Concepts of TQM

• Top Management commitment – Participation, Complete involvement and
communication of the TQM Programme.
• Focus on customer – Achieving Cust Satisfaction is the heart of TQM.
• Effective involvement and utilization of the entire work force – “Principle of employees
involvement "or “ Respect for People” Each person is responsible for the quality of the
work they do.
• Continuous Improvement : TQM is based on progress and improvement. It is the way to
make better use of the company ‘s total quality resources.
• Treat suppliers as partners
• Establishing performance measures for the processes:
• Quantitative data to measure to the continuous quality improvement.
• Performance measures like Productivity, sales turnover, Absenteeism, customer
satisfaction etc.

2. Discuss in detail the benefits of TQM?

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 ISO - Total Quality Management (TQM) is the management approach of an
organization, centered on quality, based on the participation of all its members and
aiming at long term success through customer satisfaction and benefits to all members of
the organization and society.

Tangible Benefits Intangible Benefits

Improved Product Quality Improved Employee Participation

Improved Productivity Improved team work

Reduced quality costs Improved Working relationships

Increased market and customers Improved Customer satisfaction

Increased profitability Better company image

Reduced employee grievances Enhancement of job interest

Enhanced problem solving capacity

Obstacles to TQM
• Lack of Management commitment
• Inability to change organizational culture
• Improper Planning
• Lack of continuous training and Education
• Incompatible organizational structure and isolated individuals and departments
• Ineffective measurement techniques and lack of access to data and results
• Paying inadequate attention to internal and external customers
• Inadequate use of empowerment and teamwork
• Failure to continually improve

3. What is vision, mission & policy statement? Give examples each(January 2011)
Quality statements
Three elements of quality statements.
• Vision statement
• Mission statement
• Quality Policy statement
Vision statement
It is the short declaration of what an organization aspires to be tomorrow
The vision should be coined in such a way that the leaders and employees working in the
organization should work towards the achievements of vision statements
Eg: To continuously enrich knowledge base for practioners in mobility industry and
institutions in the service of humanity.(Society of Automotive Engineers.

Mission statement
It describes the functions of the organization. The mission statement answers the following
question
1. Who we are ?

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 2. Who are the customers?
3. And how we do it?
Eg Mission statement of ITC ltd:
• Concern for the ultimate customers- millions of customers
• Concern for the intermediate customers- the trade
• Concern for the suppliers – the sources of raw materials and ancillaries
• Concern for the employees – the most valued asset.
• Concern for the competitors – wishing them well as healthy competition ultimately
benefits the customers
• Concern for the shareholders- the investing public
• Concern for the national aspiration –India ‘s future.

Quality Policy Statement

It’s a guide for everyone in the organization as to how they provide products and service to the
customers.
It is written by the CEO with the feedback from the workforce and be approved by the quality
council
It is important requirement of ISO 9000 quality systems
Eg : Quality policy of Xerox Company.
Xerox is a quality company. Quality is the basic business principle for Xerox. Quality means
providing our external and internal customers with innovative products and services that fully
satisfy their requirements. Quality is the job of every employee.
4. Explain the various techniques used to analyse quality cost. (January 2012)
Quality cost are used by management in its pursuit

o Quality Improvement
o Customer Satisfaction
o Market Share
o Profit Enhancement.
o Helps to Identify the hidden and buried cost
When Quality Cost is too high, It is sign of management ineffectiveness, which affects the
organization competitive position.
Analysis
1) The most common used technique for analyzing the quality cost are trend and pareto analysis.
2) The objective of these techniques to determine opportunities for quality improvements.

Trend Analysis
1. A trend analysis or a trend graph is a planning tool that provides information for a long range
planning . It also provides information for the investigation and assessment of quality
improvement programmes.
2. In this context trend analysis compares the present quality cost levels to past levels.

Characteristic of Trend Analysis

1) Trend analysis can be established by cost category , by sub category, by product, by measurement
basis, by department and by combinations.
2) Depending on the purpose of the analysis, time scales of this trend graphs may be by graph by
month or quarter.
3) Input data for trend analysis compares the present quality cost levels to past levels

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 Pareto Analysis
It is method of classifying items, events or activities according to the relative importance.
A Pareto Diagram is a diagnostic tool commonly used for separating the vital few causes the
account for a dominant share of quality loss.
It was named after Wilfredo pareto who devised the tool.
It is based on the Pareto Principle , Which states that a few of defects accounts for the most of the
effects.
It is otherwise called as 80/20 rule or ABC analysis .It means only 20%of defects amounts to 80%
of its effects.

How to use
1. A wide range of situations where one need to priorities problems based on its relative importance.
2. It is Cost analysis tool.
3. Pareto Diagrams can be established for quality cost by operator, by machine, by product line, by
non conformity , by category, by element etc.
4. It is risk management technique.

Construction of the Pareto Diagram

1. Obtain the data.

2. Arrange them in ascending order.( largest to smallest).
3. Calculate the percentages
4. Compute the cumulative percentage
5. Draw the bar chart with two vertical axes
6. Draw the bar above each item represents the causes of each categories
7. Plot the cumulative percentage line.

Elements of Quality Cost:

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 Cost area Description

Prevention costs Arise from efforts to keep defects from occurring at all
Costs of control (Costs of
conformance)
Appraisal costs Arise from detecting defects via inspection, test, audit

Internal failure Arise from defects caught internally and dealt with by
costs discarding or repairing the defective items
Costs of failure of control (Costs of
non-conformance)
External failure
Arise from defects that actually reach customers
costs

5. Discuss the TQM frame work for an Indian Manufacturing service industry(January 2011)

Guru
Shewhart
Deming
Juran
Feigenbaum
Ishikawa
Crosby
Taguchi

Tools and Techniques

Benchmarking
Quality Management Systems
Environmental Management Systems
Quality Function Deployment
Quality by design
Failure Mode Effect Analysis

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 Total Productive Maintenance
Statistical Process Control
Taguchi Quality Engineering

Principles and Practices

Approach : Continuous Process Improvement
People and Relationships: Leadership, Customer Statisfaction, Employee Involvement, Supplier
partnership

6. Discuss in detail the eight dimensions of quality with examples.(Nov / Dec 2011)
Explain the factors that influence end user perceptions (June 2010)
Explain the dimensions of Product Quality. (April / May 2011)
Define the Quality based on the following (April / May 2011)
a. Transcendental
b. Product
c. User
d. Manufacturing
e. Value based
f. ASQ
Introduction to Quality
• Conformance to Specifications
• Technique to guarantee survival in world class competition
• Sustained Performance and Customer Responsiveness ( Microsoft)
• Thus Quality is “ The ability of a product or service to meet the customer needs.”
Definitions – Quality

• Deming : Quality is a predictable degree of uniformity and dependability, at low cost and
suited to the market.
• Juran : Quality is fitness for use.
• Taguchi : Quality is the (minimum)loss imparted by a product to society from the time the
product is shipped.
• Feigenbaum :Quality is, a way of managing the organization.
• Philip Crosby : Quality is conformance to requirements.
• ISO definition of quality is as follow
“Quality is the totality of characteristics of an entity that bear on its ability to satisfy stated and
implied needs.”

Dimensions of TQM
• Manufacturing Dimensions
– Performance
– Features
– Reliability
– Conformance
– Durability
– Serviceability
– Aesthetics

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 – Perceived quality

• Performance
– Primary product characteristics or the attributes of the product such as brightness
• Features
– Secondary characteristics of the Product, added features Remote control.

• Conformance
– Meeting the specifications or industry standards.
• Reliability
– Consistency of the performance over time, average for a unit to stop functioning ( fail)
• Durability
– Useful life, includes repair.
• Service
– Resolution of the problems and complaints ease of repair.
• Response
– Human to human interface such as courtesy of the dealer.
• Aesthetics
– Sensory characteristics such as exterior finish.
• Reputation
– Past performance and other intangibles such as being ranked firs

• Service Dimensions
– Reliability
– Responsiveness
– Competence
– Access
– Courtesy
– Communication
– Creditability
– Understanding
– Security
– Tangibles
• Reliability
– Consistency of performer and dependability. Ability to perform the promised service
dependably and accurately
• Responsiveness
– Willingness or readiness to help and provide prompt service
• Competence
– Possession of skills and knowledge required to perform the service.
• Access
– Approachability and ease of contact.
• Courtesy
– Politeness, Respect, Consideration , clean and neat appearances. Caring and
individualized attention.
• Communication &Understanding

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 – Education and informing customers in language they can understand, listening to
customers.
• Credibility
– Trustworthiness, belief, Dependability.
• Security
– Freedom from danger and risk. Providing assurance.
• Tangibles
– The physical evidence of service. Physical facilities, equipment and appearance of
personnel

Five Views of Quality

Garvin (1984) has explored how different people perceive quality. He describes quality from five
different perspectives:
1. Transcendental view. Quality is something we can recognize but not define.
2. User view. Quality is fitness for purpose.
3. Manufacturing view. Quality is conformance to specification.
4. Product view. Quality is tied to inherent product characteristics.
5. Value-based view. Quality depends on the amount the customer is willing to pay for it.

7. Explain the cost of quality (June 2010), (January 2012)

Cost Of Quality.
The Value of Quality must be based on its ability to contribute to profits. Quality related cost are
the cost incurred by an organization to ensure that the products / services it provides conform to
customer requirements .

Definition:
Quality cost are defined as those costs associated with the non-achievement of products / service
quality as defined by the requirements established by the organization and its contract with the
customer.
Quality cost is the cost of poor products or services.
When Quality Cost is too high, It is sign of management ineffectiveness, which affects the
organization competitive position.

Prevention cost:

“ The cost that are incurred on preventing a quality problem from arising.”

• Marketing / Customer/ User

• Product / Service / Design Development
• Purchasing
• Operations
• Quality Administration

Appraisal Cost:

“ The Cost incurred in assessing that the products / services conform to the requirements”

• Purchasing Appraisal Cost

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• Operation ( Manufacturing or Service ) Appraisal Cost
• External Appraisal Cost
• Review of test and inspection data:
• Miscellaneous quality evaluation:

Internal Failure Cost :

“ Cost arise due to internal failures.”

• Product or Service Design Failure Cost:

• Purchasing failure cost
• Operations cost

External Failure Cost

The cost incurred due to the non conformance of the products or services after delivery of
products to the customer.

8. What are the avenues of getting customer feedback? How can a company use these
feedbacks to business improvement? (Nov / Dec 2011)

Customer Feedback :
Customer feedback is required for the following reasons
1. To discover customer dissatisfaction
2. To identify the customer needs
3. To discover relative priories of quality
4. To compare performance with competition
5. To determine opportunities for improvement.

Tools of Customer Complaints:

Customer feedback has to been given importance it drives to the new product development.
Help in identifying and analyzing the errors ,

• Comment card
• Customer Questionnaire
• Focus Groups
• Toll Free telephone
• Customer Visit
• Report Card
• Internet & Computers
• Employee Feedback.
• Mass customization

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 9. Compare Old Quality versus New Quality in the following aspects : Products, Control ,
Inspectors and Technical. (April / May 2011)

Quality Element Old Quality New Quality

Definition Product Oriented Customer oriented

Priorities Second to service and cost First among service and cost
Decisions Short term Long term
Emphasis Detection Prevention
Errors Operations System
Responsibility Quality Control Everyone
Problem Solving Managers Teams
Procurement Price Life cycle cost, partnership
Manager’s Role Plan, assign , control and enforce Delegate, coach , facilitate and
mentor

10. Describe the TQM implementation in a Manufacturing company(April / May 2011)

Total Quality Management

ISO - Total Quality Management (TQM) is the management approach of an organization, centered on
quality, based on the participation of all its members and aiming at long term success through customer
satisfaction and benefits to all members of the organization and society

Characteristics of TQM

1. TQM is customer oriented

2. TQM is long term commitment for continuous improvement of all process
3. TQM is team work
4. TQM requires the leadership of the top management and continuous involvement.
5. TQM is a strategy of continuous improving performance at all levels and in all areas of
responsibility.
6 Basic Concepts of TQM

• Top Management commitment – Participation, Complete involvement and communication of the

TQM Programme.
• Focus on customer – Achieving Cust Satisfaction is the heart of TQM.
• Effective involvement and utilization of the entire work force – “Principle of employees
involvement "or “ Respect for People” Each person is responsible for the quality of the work
they do.
• Continuous Improvement : TQM is based on progress and improvement. It is the way to make
better use of the company ‘s total quality resources.
• Treat suppliers as partners
• Establishing performance measures for the processes:
• Quantitative data to measure to the continuous quality improvement.
• Performance measures like Productivity, sales turnover, Absenteeism, customer
satisfaction etc.

www.stmarysmba.co.cc