*TOTAL QUALITY MANAGEMENT

Prof. (Dr.) Satish Ailawadi

*FUNDAMENTAL CONCEPTS OF TQMTotal quality management is both a philosophy and a set of guiding principles that represent the foundation of a continuously improving organization.Encompasses mobilizing the entire organization to satisfy the demands of the customers.TQM is focused on routine involvement and participation of everyone in the organization in the systematic improvement of quality. It involves each individual and group within all parts of the organization.

*TQM provides a way of life to constantly improve performance at every level and at in every activity, by creating a positive environment for continuous improvement based onTeam workTrust and RespectExamining the processes in a systematic mannerApplication of quantitative methods and analytic techniques

*Demings Chain Reaction

Improve quality Decrease costs due to less rework, fewer mistakes, fewer delays and snags, and better use of time and materialsImprove productivityCapture the market with better quality and lower pricesStay in businessProvide steady jobs and more jobs.

*A shift from traditional approaches to quality QUALITY CONTROLQuality standards -Statistical quality techniquesProcess performance -Treating quality problemsQUALITY ASSURANCE-Quality systems (ISO 9000) -Quality planning - Quality policy- Quality costing - Problem solving

INSPECTION-Error detection- Rectification

TOTAL QUALITY MANAGEMENT Involvement of all employees, customers and suppliers - Empowered employees Teamwork - Quality strategy based upon a common mission and visionProcess oriented

*TQM can be perceived as being concerned with the followingMeeting the needs and expectations of customers. Covering all parts of the organizationExamining all costs which are related to qualityDoing things right the first time i.e. quality designing rather than inspecting.Developing the systems and procedures which support quality and improvementsDeveloping a continuous process of improvement

*TQM concerns incremental and ongoing improvement of yourself, your work, and your organization.The Kaizen philosophy is imbedded in the TQM concept and encompasses the continuous and gradual improvement of all employees in the organization.Leads to improvement in employees personal output on a daily basisKaizen Philosophy

*Important Kaizen RulesWork with and according to guidelinesProblems are opportunities for improvementsRetrieve information where it happensConsider the factsWork according to the planAvoid wasteOrder and neatnessKeep appointments

*Deming Wheel- focal point in Kaizen ApproachIn the Kaizen approach Deming Wheel is central, consisting of a cycle of activities necessary for effective quality improvement.The cycle consists of Plan, Do, Check, and Act.PlanDefine the problem, analyze the causes and draft an action plan for solving the problem.Determine the quality objectives, and critical success factors.Define performance indicators, collect and analyze the process data, generate the possible solutions.Select the most feasible solution and work it out.

2. DoImplement the plan on a limited scale or conduct an experiment to test the proposed improvement.Train all involved employees in the use of quality improvement methods and techniques.Describe the process which is considered for improvement and form project teams to lead the process.3. CheckEvaluate the trial project with performance indicators.Verify whether the improvement has been successful.What have we learnt?

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*4. ActImplement proven improvements.The improvements are documented in standard procedures so all employees involved are well informed on how to handle in future.Usually the cycle gets repeated under different circumstance and conditions to test how consistent the results are.

ACT PLAN

CHECK DO

Quality PrinciplesCustomer focus and customer involvementEmployees regularly visit their customers.Customers are known and understood Customers needs are integrated in the activities.More is being done than the customer expectsSatisfied customers are priority number one.Changing customer needs are systematically collected and lead to improvement.*

*B. Involvement of all employeesVoluntary total involvement of everyone.Teamwork that leverage the knowledge and provides synergy based on open communication, respect and trust.Skills are developed on the basis of Learning by doing. Decisions on the basis of consensus.The present situation is open for discussion.Investing in knowledge.Empowered employeesEntrepreneurial approach and leadership skills at all business levels.

*C. Consistency of purposeAn inspiring mission and vision is developed and communicated to all organizational levels.SMART- goals are formulated and preserved.(Specific, Measurable, Achievable, Realistic, and Time specific).Managers are consistent in their behaviour regarding these goals.Guidance is given to quality improvement process.There is commitment at top management.

*D. Act according to factsWork according to facts and not based on rumours or feelings.The causes and consequences of problems are analyzed according to measuring is knowing.Goal oriented data is gathered and interpreted accordingly.Measurements are based on figures; verify everything with data.Quality costs are analyzed.

*E. Process orientedInternal customers are also satisfied.The process is more important than the results; address the means of work accomplishment and not the outcomes.The effectiveness of process is measured.The output is standardized.The processes are documented in schemes and standard working procedures.Suppliers are regarded as partners and long term relationships are established.The TQM culture is expanded to suppliers.Reduction of process variations occurs continuously.

*F. Focus on continuous improvement.Employees improve themselves and their work and help others improve themselves and their organization.Problems are regarded as a means for improvement and a chance to improve processes.Emphasis on problem prevention instead of correction.Improvements are based on cross-functional, structured, and holistic approach, and are continuously documented.

*Multidisciplinary improvement teams are established. There is a working climate in which continuous improvement is a way of life.Improvement of whole and not just the parts.

*Demings and Crosby's 14 points for quality improvement

S.No.DemimgCrosby1.Create constancy of purpose towards improvement of product and service .Establish management commitment2.Adopt the new philosophyForm interdepartmental quality improvement teams.3,Cease dependence on inspectionEstablish quality measurement.4.End awarding business on the basis of price tagEvaluate the cost of quality.5.Improve constantly the system of production and service.Establish quality awareness.6.Institute training on the job.Instigate corrective action.7.Institute leadership.Ad hoc committee for the zero defects programme.

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S.No.DemingCrosby8.Drive out fear, so that everyone may work effectively for the company.Supervise employee training.9.Break down barriers between departments.Hold a zero defects day to let all employees realize that there has been a change.10.Eliminate slogans and exhortations.Encourage individuals to establish improvement goals for themselves and their groups. 11.Eliminate quotas or work standards.Error cause removal. 12.Give people pride in their job.Recognize and appreciate those who participate.13.Institute education and a self-improvement programme.Establish quality councils to communicate on a regular basis.14.Put everyone to work to accomplish it.Do it over again to emphasize that the quality improvement programme never ends.

*Total quality management is a common method to improve the whole organization stepwise, structured and systematically according to hard work, discipline, intensive training, and consistent implementation of techniques and resources.The quality principles form the foundation of TQM and are expressed in the four pillars of the TQM-house, namelyProblem solving DisciplineInterpersonal skillsTeamworkQuality improvement process.

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Employee involvement, Structured, Stepwise, Discipline, Consistency.

Problemsolvingdiscipline

InterpersonalSkills.

Teamwork

Qualityimprovement process Total Quality Management

*The success of TQM improves proportionately in conjunction with the percentage of employees within the organization who master this quality attitude, mentality, and skills,TQM covers all parts of the organization.For an organization to be truly effective, every single part of it, each department, each activity, each person and each level must work properly together, because every person and every activity affects and in turn is affected by others.

*What is Quality?Degree to which a set of inherent characteristics fulfills requirements.Many of us tend to equate quality with lluxury and expense.If asked to rank, for qualityA Rolls RoyceA Formula One racing car orA compact family saloonMost people would choose the Rolls Royce as possessing the highest quality of the three.

*To use the definition of quality given earlier and to arrive at a ranking decision we need to examine another definition of quality Grade.Grade is defined as category or rank given to given to different quality requirements for objects having the same functional use.For example, classes of airline ticket or categories of hotels.When planning the quality requirement for an object, the grade for quality requirement must be known.

*The examples of Rolls Royce, Formula One racing car and a compact family car have very different functional uses and it becomes necessary to compare each one of them with vehicles having the same functional use.This promotes an alternative definition of Quality as Fitness for Purpose.The problems this raises are Who is to judge the fitness for purpose?Should it be the customer?Should it be the manufacturer or provider of service?Should it be an independent auditor?Fitness for Purpose provides an element of subjectivity.

*Working effectively to achieve qualityA common agreement is required on what quality means.It does not mean that all products need to be gold plated.It does not mean when buying a family saloon car that all luxuries of a Rolls Royce need to be built into achieve quality.The basic quality objective is to provide products and services that meets the needs of the customers.

*Individuals, based on their experience with the products, form an opinion about quality.From varying ideas and suggestions for defining quality one idea becomes clear in all cases-the need for customer satisfaction. The multitude of suggestions make it appear that quality is a moving target and is difficult to achieve.In fact, it is not so.

*Quality is Conformance to Specifications Conformity is Fulfillment of a requirementThe Rolls Royce that meets all its specified requirements is a quality product.The family saloon that meets all its specified requirements is equally a quality product.Dr. Deming defines quality as the need to provide customers with what they need, when they need it and at a higher perceived value and lower cost than anyone else.

*Prevention rather than detection to achieve qualityTraditional methods include inspection, tests, audits to detect errors and eliminating them by scrapping or reworking products to conform to specification.This system of appraisal is commonly categorized as Quality Control.Inspection is the king.During late 1950s and early 1960s the principle of achieving quality by inspecting-out reject products was challenged.

*It was realized that quality is inherent within the product and cannot be introduced once the product is made.The philosophy of prevention rather than detection provides the opportunity for eliminating the potential for error.It involves identifying opportunities for error and taking actions to eliminate those opportunities before a problem arises.It results in the contemporary quality expression of Quality Assurance- Right First Time

*Prerequisites of TQM and Possible Actions1. Know your customers, both external and internal:Who they are, their current needs, and their future requirements. Respond to their changing needs.Do not forget the users.1.1 Possible ActionsCustomer surveysFunctional analysis Quality cost analysisQuality function deployment

*Know your competitors2.1 Possible ActionsCustomer surveysCompetitor analysisBench marking3. Know the cost of non-conformance (CONC)3.1 Possible ActionsQuality cost analysisFunctional analysis4. Measure performance against key customer driven parameters4.1 Possible ActionsCustomer surveysCompetitor analysisBench marking

*5. Make sure that each employee understands and commits themselves to the quality objectives of the business.5.1 Possible ActionsFunctional analysisEducation and trainingCommunication6. Management commitment to the continual improvement of quality within the business.

*6.1 Possible ActionsQuality cost analysisFunctional analysisEducation and trainingCommunication.7. Define the purpose of each department and activity in terms of satisfying external and internal customer requirements.7.1 Possible Actions- Functional analysis

8. Enable the employees to fulfill their commitment to quality by influencing the programme of continuous improvement. 8.1 Possible ActionsEducation and trainingCommunicationCorrective action task force, corrective actions group.Error cause removal schemes.Quality circlesProblem solving

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Statistical process controlRecognition of performanceSuggestion programmesSelf inspection programmes.9. Wherever possible replace the inspection and correction techniques of quality control with effective preventive actions.9.1 Possible ActionsQuality cost analysisFunctional analysis

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Quality Management SystemsError Cause removal schemesQuality CirclesProblem solvingSuggestion programmes.Never accept a non-conforming output in the form of a product for external or internal customer.10.1 Possible ActionsQuality Cost Analysis

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*Functional AnalysisEducation and TrainingCommunication.11. Plan effectively before undertaking any actions.11.1 Possible ActionsQuality Improvement Team Apparently, there is no end to improvement.The recognition of the necessity to continuously revise the quality thinking is essential to the ultimate success of business venture.

5 S of HousekeepingHousekeeping is given a lot of importance in the total quality management system.It reduces the wastage of time and improves the efficiency and effectiveness of work.Improper housekeeping may lead to accidents, dull working environment and other work related problems.*

Seiri- OrderlinessThe orderliness of manufacturing aids, proper arrangement of raw materials near the machines and keeping the files and drawings in order to make working fast, effective and efficient without wastage of the effort or time and material.2. Seiso- ClarityThe clarity of work process, flow process charts, arrangement of raw materials, finished goods and intermediary services make the work place more efficient and effective.

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3. Seiton-TidinessTidiness ensures adequate space for machines and movement of manpower is made easy.Tidiness avoids mixing of different materials and it makes product identification easy.The chances of rejection and rework gets minimized.4. SeiketsuThe cleanliness of the shop floor and the office are mandatory for good working environment, good product quality and elimination of accidents.

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This also helps an organization to put up a decent appearance of the organization before the visitors. 5. Shitsuke-Discipline Recommends discipline in all the four housekeeping practices together to enhance the effectiveness of housekeeping.It ultimately leads to the self discipline of the organization.

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*Total Quality Management Pioneers1.Walter ShewartFounder of P-D-C-A CycleOriginator of statistical process control at AT&T Bell Labs in 1930.2. W.Edward DemingLed quality revolution in Japan during the post-world war II period.Quality is a key competitive advantage.Deming quality award by Japan is the most prestigious quality award.

*Demings fourteen points for excellence.Demings seven diseases.3. Joseph M.JuranLed quality revolution in Japan during the post-world War II period.He defined quality as fitness for use by customer.Jurans triology of quality, quality control, and quality improvement.Started Jurans Institute in USA.Introduced cost of poor quality.

*4. Philip B. Crosby Started Crosby quality college.Created the concept of zero defect.Defined quality as conformance to requirement.Crosbys 14 steps of quality improvement.5. A.V. FeigenbaumOriginator of QM conceptHis theory of three steps to qualityQuality leadership, modern quality technology and organizational commitment.

*6. Taiichi OhnoFormulated the flexible manufacturing systems (FMS)Father of the just-in-time and kanban manufacturing. Father of TPS or Toyota Production System.7. Sheigo ShingoOriginator of Single minute exchange of diesIntroducing the concept of modular manufacturing.

*8. Kaoru IshikawaOriginator of fish bone or the cause and effect diagramme.Originator of Company Wide Quality Control (CWQC).Responsible for initial deployment of quality circles.Remove the root cause and not the systems.9. Masaaki ImaiPopularized the Kaizen concept of continuous improvement.10. E.GoldratTheory of constraints

*Demings 14 points to reach World Class Performance Standards Achieve constancy of purposeTop management must define the organizations vision, mission and objective with the constancy of purpose .The goal integration between the organization and individuals working there is extremely important for individuals to give their best for the achievement of the organizational objectives.

*2. Learn a new philosophyChallenge the status-quo.Todays management is learning, unlearning and relearning that is relevant to the organization.The speed and frequency with which the organization and its employees learn new philosophy decide its growth rate and market leadership.3. Do not depend on mass inspection (Use statistical sampling technique).Emphasizes heavy deployment of statistical techniques in the area of inspection.

*Deming was of the opinion that the behaviour of the whole group is going to be more or less the same as that of the sample lot taken for the inspection. Therefore, why unnecessarily waste precious resources of manpower and time for 100% inspection.4. Reduce the number of vendors for better control and consistencyVendors need to be treated as part of the organization.There needs to be direct involvement of the organizations in the statistical process control of the vendors.This will lead to improve vendors process capability and there will be no need to do 100% inspection.

*If the vendors are changed frequently for cheaper price, quality of supplies would never stabilize.Hence, number of vendors per component should be either one or two to have a better control and consistency in the supplies.5. Recognize two sources of faults: (a)management and production systems (b) production workers.There are two types of errors or faults.One is due to random causes and other is due to assignable causes.The random causes are due to faulty process design or inadequate machine capability.

*The management alone can solve such problems.The assignable errors are due to workers and occur due to faulty workmanship.This can be eliminated by providing training to the workers and motivating them properly.6. Improve on the job trainingDeming always described on-the-job training as the best method of training where the absorption of knowledge imparted during training is the maximum.Identify the training needs and the skill level required for each operator and employees.Conduct training for best results.

*7. Improve supervisionImprove the supervision at the process level so that not only errors or mistakes are minimized, but also on-the-job training to the operators is strengthened.This will lead to continuous improvement, better productivity and enhanced quality of products, process and services.8. Drive out fearOrganization should be proactive and there should be employee involvement at all levels.Fear should not be the driving force to achieve the end results.

*9. Improve communicationThe majority of the labour problems are due to lack of communication between the workers and the management.Communication should be immaculate in terms of training, learning of new technology, setting of new objectives etc.10. Eliminate slogans and exhortations.This is quite similar to driving out fear and hence gets emphasized.Ensure employees are not exploited.11. Consider work standards carefully and eliminate quotasExamine each standard from functional point of view.

*Do not overdesign or keep tolerances too rigid .If it is not required from customers point of view and not adding any value, why unnecessary incur additional expenditure.12. Teach statistical methodsImplement statistical process control system in manufacturing leading to establishment of process capability This would lead to zero defects in products and services.Results into enhancement of productivity.

*13. Encourage education and a self-improvement programme.A product innovation and development helps in increasing the market share.Innovations in process enhances productivity and quality and reduces the cost of production.Organizations should have systems like suggestion scheme, quality improvement teams to encourage new skills and their implementation.

14. Ensure total employee involvement.Put everyone to work to accomplish it.Involvement should be voluntary.This would enable organization to achieve its objectives in minimum amount of time and cost.

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*Demings Seven Deadly DiseasesLack of consistency of purpose to plan product and services that have a sufficient market to keep the company in business and provide jobs.2. Emphasis on short-term profits; short term thinking that is driven by a fear of unfriendly takeover attempts and pressure from bankers and shareholders to produce dividends.3. Performance appraisals, merit rating, and annual appraisal without providing resources to accomplish objectives.

*Job hoping by managers.

5. Using only visible data and information in decision making with little or no consideration given to what is not known or cannot be known.

6. Excessive medical costs.

7. Excessive cost of liability driven up by lawyers that work on contingency fees.

*What are Quality Costs?A particularly powerful technique in improving quality. Quality costs are incurred in two waysThe costs incurred in the design, implementation, operation and maintenance of quality management systems, andThe costs incurred through failure of product manufacture or services. Quality management systems may range from simple inspection to systems which include consideration of all the management actions affecting the quality of the product or service.

*Production system failures can result in:Production delaysScrapRectification workLate deliveriesDefective products going undetected, and evenObsolete stocksThe outcome of these failures leads in turn to:Warranty and product liability charges.Complaint administration and investigationLate delivery penalty clause paymentsProduct recallLoss of goodwill

*Quality costs can also arise from varieties of activities which may not be connected with the quality of product or service; such asSales and marketingDesign and developmentPurchasingProduction (including planning & control)Handling and storageDelivery, installation and servicing.

*The control of these activities may lie within or outside an organization.The outside influences will come from suppliers, sub-contractors, stockists, agents, dealers or consumers.The quality costs can be summarized as;Cost of appraisalCost of preventionCost of failure Studies have indicated quality costs range from 5% to 25% of companys turnover depending upon the nature of industry, products or services and the level of quality management employed.

*Studies have also indicated that 95% of the costs stem from appraisal and failure.Neither of these costs add value to the product or service and therefore failure costs should be avoidable.If the causes of failure can be eliminated it will lead to a reduction in the need for appraisal with the consequent cost reduction.Studies have indicated that implementation of effective quality management systems can reduce quality costs to one third of their previous levels.

*Categories of Quality Costs Quality Related CostsConformance CostsNon-conformance CostsAppraisal CostsPrevention CostsInternal failureCostsExternal failureCosts

*Appraisal CostsThe cost of assessing the quality achieved.These costs include the costs of inspection and testing carried out during and on completion of manufacture.Prevention CostsThe cost of any action taken to investigate, prevent or reduce defects and failures.These costs include the cost of planning, setting-up and maintaining the quality management system.

*Failure Costs-InternalThe costs arising within the organization of the failure to achieve the quality specified.These costs include the cost of scrap, rework and re-inspection and also the consequential losses that result such as interruption in schedules, idle capacity. Failure Costs- ExternalThe costs arising outside the organization because of failure to achieve the quality specified.

*These include the costs of claims against warranty, replacement, consequential losses, loss of goodwill and penalty clause payouts for late delivery.When a quality costing is carried out, it is necessary to consider appraisal, prevention and failure costs in terms ofSalaries and wageConsumable materialsCapital equipment depreciationVarious other costs directly related to department within the organization. The loss of goodwill resulting from poor quality is difficult to analyze and could be very easily be the most expensive of all the quality costs.

*Crosby's Theory on Quality Management-6 CsWhile Juran propagated that higher quality costs less, Philip Crosby tried to popularize the concept that quality is free.Crosby is famous for his 6 Cs.ComprehensionAbility to understand and absorb the quality related activities, its sustenance and improvements.

*(2) CommitmentsTop management, employees, suppliers and the customers to get committed to work together towards quality management systems.(3) CompetenceFor improving the effectiveness and efficiency of the quality management system and then sustaining the improvement on a long-term basis.(4) Corrections- Fool proofing the quality management systems by rectifying the mistakes and deviations and putting the quality management system back on the track for world-class performance.

*(5) CommunicationsIn order to ensure support to the quality management system from employees, suppliers and customers alike, communication in the organization should be clear without ambiguity.

(6) Continuance- The organizations good performance and its continuous improvement is the essence of a world-class organization and its successful operation.

*Four Absolute Requirements for attainment of quality-Crosby

*QS 9000/TS 16949REQMNT SPCIFIC TO AUTO MFG AND SUPPLIERSSUPPLIERS QLTY ASSURANCE MANUALQS 9000 STDS A SUPERSET OF ISO 9000 AND APPLIES TO ALL SUPPLIERS OF PRODN MATRL, SERVICE PARTS, OR SERVICES CONTENTS OF QS 9000 INCLUDE: -ISO 9000 BASED REQMNTS -SECTOR SPECIFIC REQMNTS -CUSTOMER SPECIFIC REQMNTS

*SECTOR SPECIFIC REQMNTSPRODN PART APPROVAL PROCESS -PPAP IS GRANTED FOR A PART NUMBER ,ENGG CHANGE LEVEL MFG LOCN,MATRL SUBCONTRACTING AND PRODN PROCESS ENVT. CHANGE IN ANY OF THESE REQUIRES CUSTOMER NOTIFICATIONCONTINUOUS IMPROVEMENT THRU TECHNIQUES: -CAPABILITY INDEX -THEORY OF CONSTRAINTS -PPM ANALYSIS -COST OF QLTY ANALYSIS -VALUE ANALYSIS -FAULT TREE ANALYSIS OR FISHBONE DIAGRAM -MISTAKE PROOFING MANUFACTURING CAPABILITIES -FACILITY PLANNING AND EFFECTIVENESS -MAINTENANCE AND REPAIR FACILITYPART TRACKING MECHANISM

*CUSTOMER SPECIFIC REQMNTDEAL WITH SPECIFIC REQMNTS OF CUSTOMER eg MARUTI , TATA MOTORSDEFINE SPECIFIC REQMNTS AND ACCEPTANCE LEVELS FOR SAFETY, EMISSION AND NOISESUBMISSION OF DESIGN FMEA FOR EACH CRITICAL PART BY SUPPLIERS

*OVERVIEW OF ISO 14000ALSO CALLED ENVIRONMENTAL MGT SYSTEMS(EMS)EMS IS A SET OF MGT PROCEDURES THAT ALLOWS AN ORGANIZATION TO IDENTIFY,EVALUATE AND REDUCE THE ENVT IMPACT OF ITS ACTIVITIESWELL IMPLEMENTED EMS HELPS ORGANIZATION ADDRESS ITS REGULATORY DEMANDS IN A SYSTEMATIC MANNER WHICH REQUIRES RISK OF NON COMPLIANCEEMS HELPS ADDRESS ISSUES SUCH AS NOISE,POLLUTION,EFFLUENT,WATER AND ENERGY CONSERVATIONEMS PROMOTES STRONGER OPERATIONAL CONTROLS

*ELEMENTS OF ISO 14000 SYSTEMENVIRONMENT POLICY -ROADMAP FOR IMPROVING BUSINESS ENVIRONMENT PERFORMANCE -POLICY SHOULD INCLUDE COMMITMENT FOR POLLUTION PREVENTION AND ADHERENCE TO REGULATIONS , STANDARDS CODE OF PRACTICE ETC PLANNING -PLANNING TO INCLUDE COMPLIANCE TO LEGAL REQUIREMENTSIMPLEMENTATION -OPERATIONAL PROCEDURES TO IDENTIFY SPECIFIC REQUIRED CONTROLSCONTROL -PROCESSES TO MONITOR AND CONTROL ENVIRONMENTAL REGULATIONS

*BENEFITS OF ISO 14000IMPROVED ENVT PERFORMANCEIDENTIFICATION OF POLLUTION PREVENTION OPPORTUNITIESIMPROVED COMPLIANCECOST SAVINGSREDUCED EHS RISKIMPROVED PUBLIC RELATIONS

*OSHAS 18001PART OF OCCUPATIONAL HEALTH AND SAFETY MGT SYSTEMSTRUCTURED PROCESS TO MINIMIZE POTENTIALS OF WORK RELATED INJURIES AND FATALITIESOBJECTIVITY IS TO INCREASE PRODUCTIVITY THROUGH MINIMIZATION OF ACCIDENT RELATED COSTS AND TIMEA SAFETY AND HEALTH MGT POLICY SHOULD CONTAIN GUIDELINES FOR COMPLIANCE,PREVENTION AND CONTINUAL IMPROVEMENT

*MAJOR ELEMENTS OF OSHAS GUIDELINESIDENTIFICATION OF HAZARDS ASSOCIATED WITH A SITE,OPERATION AND PRECAUTIONS TO BE TAKEN PRIOR TO WORK COMMENCEMENT AND TERMINATION OF WORKMGT COMMITMENT AND EMPLOYEE INVOLVEMENTHAZARD PREVENTION AND CONTROLRISK ANALYSIS OF WKPLACES AND PRECAUTIONS TO BE OBSERVED PRIOR TO START AND TERMINATION OF WORKRISK ANALYSIS OF MATERIAL AND DECLARATION OF SAFE STORAGE PLACESPROCEDURE FOR PERMITS ,CERTIFICATES AND PERSONAL PROTECTIONPERIODIC AUDIT OF SAFETY AND HEALTH PROCEDURESSAFETY AND HEALTH TRG AND PROCEDURE DEFINITION IMPLEMENTATION AND CONTROLDEFINITION OF EMERGENCY PROCEDURE AND CRISIS MGT PLANS AND AUDIT OF PREPAREDNESS SHOULD CONTAIN GUIDELINES FOR COMPLIANCE PREVENTION AND CONTINUOUS IMPROVEMENT

*OVERVIEW OF SA 8000SOCIAL ACCOUNTABILITY REQUIREMENTGLOBAL STANDARD ON CORPORATE SOCIAL ACCOUNTABILITYAIMS TO GUARANTEE BASIC RIGHTS OF WORKERS INVOLVED ESPECIALLY IN INDUSTRIAL UNITSSETS BASIC STANDARDS FOR: -CHILD LABOUR BELOW AGE OF 15 -FORCED LABOUR -HEALTH AND SAFETY -DISCRIMINATION -FREEDOM OF COLLECTIVE BARGAINING -DISCIPLINARY PRACTICES INCLUDING TORTURE AND CORPORAL PUNISHMENT -REGULATED WORKING HOURS NOT EXCEEDING 12 HRS/DAY AND ENFORCED BREAK AFTER EVERY 10 SUCCESSIVE WORK DAYS -COMPENSATION TO MEET MINIMUM WAGES ACT -SYSTEMS TO CONTROL COMPLIANCES TO STANDARDS

*BENEFITS OF SA 8000PUTTING COMPANY VALUES INTO ACTIONENHANCING COMPANY BRAND IMAGEIMPROVING EMPLOYEE RECRUITMENT , PERFORMANCE AND RETENTIONBETTER CORPORATE PERFORMANCEENHANCED EMPLOYEE LOYALTY AND COMMITMENT

*PEOPLE CAPABILITY MATURITY MODELP-CMM MODEL FRAMEWORK FROM CARNEGIE MELLON S/W ENGG INST HELPS ORGS IN DEVELOPING WORKFORCE MATURITY AND ADDRESSING THEIR CRITICAL PEOPLE ISSUESBASED ON BEST PRACTICES IN HR,ORG DEV AND KMP-CMM GUIDES IN IMPROVING PROCESSES FOR MANAGING AND DEVELOPING WORKFORCEENABLES CONTINUOUS WORKFORCE DEVELOPMENT, SETS PRIORITIES FOR IMPROVEMENT ACTIONS INTEGRATES WORKFORCE DEVELOPMENT WITH PROCESS IMPROVEMENT AND ESTABLISHES CULTURE OF EXCELLENCEPROVIDES ROADMAP FOR IMPLEMENTING WORKFORCE PRACTICES THAT CONTINUOUSLY IMPROVE ORG WORKFORCE CAPABILITY

*PEOPLE CAPABILITY MATURITY MODELP-CMM ESTABLISHES AN INTEGRATED SYSTEM OF WORKFORCE PRACTICES THAT MATURE WITH INCREASING ALIGNMENT WITH BUSINESS OBJECTIVES PERFORMANCE AND CHANGING NEEDSP-CMM BASED ON 10 PRINCIPLES

*10 PRINCIPLES OF P-CMM1.WKFORCE CAPABILITY DIRECTLY RELATED TO BUSINESS PERFORMANCE2 CAPABILITY IS A COMPETITIVE ISSUE AND A SOURCE OF STRATEGIC ADVANTAGE3 CAPABILITY MUST BE DEFINED IN RELATION TO STRATEGIC BUSINESS OBJECTIVES4 KNOWLEDGE INTENSE WORK SHIFTS FOCUS FROM JOB ELEMENTS TO COMPETENCES5 CAPABILITY CAN BE MEASURED AND IMPROVED AT MULTIPLE LEVELS INCLUDING INDIVIDUALS,WKGRPS,COMPETENCIES AND ORG

*10 PRINCIPLES OF P-CMM6 INVESTMENT IN CAPABILITY IMPROVEMENT OF WKFORCE COMPETENCES THAT ARE CRITICAL TO CORE COMPETENCES AS A BUSINESS7 OPERATIONAL MGT RESPONSIBLE FOR CAPABILITY OF WKFORCE8 IMPROVEMENT OF WORKFORCE CAPABILITY CAN BE PURSUED AS A PROCESS OF PROVEN PRACTICES AND PROCEDURES9 ORG RESPONSIBLE FOR PROVIDING IMPROVEMENT OPPORTUNITIES WHILE PEOPLE ARE RESPONSIBLE FOR TAKING ADVANTAGE OF THEM10 AS TECHNOLOGIES EVOLVE RAPIDLY ORG MUST CONTINUALLY EVOLVE WKFORCE PRACTICES AND DEVELOP NEW COMPETENCES

*MATURITY LEVELS OF P-CMMFIVE MATURITY LEVELS THAT ESTABLISH FOUNDATIONS FOR CONTINUALLY IMPROVING INDIVIDUAL COMPETENCIES DEVELOPING EFFECTIVE TEAMS MOTIVATING IMPROVED PERFORMANCE AND SHAPING WKFORCE TO ACCOMPLISH ITS FUTURE BUSINESS PLANS EACH MATURITY LEVEL IS A WELL DEFINED STAGE WHICH DISPLAYS NEW CAPABILITIES FOR DEVELOPING WKFORCE

*FIVE STAGES OF MATURITY OF P-CMM1 INITIAL LEVEL-TYPICAL CHARACTERISTICS INCONSISTENCY IN PERFORMING PRACTICES, DISPLACEMENT OF RESPONSIBILITY,EMOTIONALLY DETACHED WORKFORCE2 MANAGED LEVEL-TYPICAL CHARACTERISTICS WORK OVERLOAD,ENVT DISTRACTORS,UNCLEAR PERFORMANCE OBJECTIVES,LACK OF KNOWLEDGE,POOR COMMN,LOW MORALE

*FIVE STAGES OF MATURITY OF P-CMM3 DEFINED LEVEL-BASIC WKFORCE PRACTICES PERFORMED. INCONSISTENCY IN METHOD OF APPLICATION AND NO SYNERGY. OPPORTUNITIES MISSED TO STANDARDIZE PRACTICES BECAUSE KNOWLEDGE REQD TO CONDUCT BUSINESS ACTIVITIES HAS NOT BEEN IDENTIFIED AND IMPARTED4 PREDICTABLE LEVEL-ORG MANAGES AND EXPLOITS CAPABILITY CREATED BY WKFORCE COMPETENCES.ORG IS ABLE TO MANAGE CAPABILITY AND PERFORMANCE QUANTITATIVELY AND PREDICT CAPABILITY FOR PERFORMNG WORK. IT CAN QUANTIFY CAPABILITY OF WKFORCE AND OF COMPETENCE BASED PROCESSES THEY USE IN ASSIGNMENTS5 OPTIMIZING LEVEL-ENTIRE ORG FOCUSED ON CONTINUOUS IMPROVEMENT. IMPROVEMENTS ARE MADE TO CAPABILITY OF INDIVIDUALS AND WKGROUPS ,TO THE PERFORMANCE OF COMPETENCY BASED PROCESSES AND TO WKFORCE ACTIVITIES TREATS CHANGE MGT AS A BUSINESS PROCESS TO BE PERFORMED ON A REGULAR BASIS

*EVOLUTION OF QUALITY MGTCONCEPT OF QUALITY HAS GROWN SINCE THE EARLY DEFINITION OF QUALITY AS PRODUCING OUTPUT IN CONFORMANCE TO CUSTOMER REQUIREMENTEVOLUTION HAS PASSED THROUGH 4 GENERATIONS

*QUALITY BUILDING BLOCK FIRST GENERATION-INSPECTIONPRIMARY CONCERN IS DETECTION OF ERROR AND CORRECTIVE ACTIONS THROUGH INSPECTIONSEMPHASIS IS ON CONFORMITY WITH CUSTOMER REQMNT.RESPONSIBILITY IS INSPECTION DEPARTMENT WHICH INSPECTS AND DOES ACCEPTANCE SAMPLINGKEY OBJECTIVE OF EXERCISE IS TO IDENTIFY AND RECTIFY NON CONFORMITIES.

*QUALITY BUILDING BLOCK SECOND GENERATION-QCPRIMARY CONCERN IS QUALITY CONTROLEMPHASIS ON UNIFORMITY WITH REDUCED INSPECTION USING STATISTICAL TOOLS AND TECHNIQUESRESPONSIBILITY IS MANUFACTURING AND ENGINEERING DEPARTMENTDEVELOP QUALITY MANUAL AND PROCESS PERFORMANCE MEASUREMENT SYSTEMSQUALITY PLANNING IN PLACESELF INSPECTION DONE BY OPERATORS MOTTO IS DO IT RIGHT FIRST TIME

*QUALITY BUILDING BLOCK THIRD GENERATION-QAPRIMARY CONCERN IS QUALITY ASSURANCEEMPHASIS ON PRODUCTION LINE AND QUALITY FROM THE FIRST STAGEQUALITY SYSTEMS DEVELOPMENTIMPLEMENTATION OF QFD, COST OF QUALITY, FMECA, VALUE ANALYSISMOTTO IS DO THE RIGHT THING ALWAYSELIMINATE NON VALUE ACTIVITIES AND FUNCTIONALITIES

*QUALITY BUILDING BLOCK FOURTH GENERATION-SQMEMPHASIS ON MARKET AND CONSUMER NEEDSQUALITY IS A STRATEGIC PLANNING EXERCISE INVOLVE CUSTOMERS, SUPPLIERS AND EMPLOYEESPROCESS PERFORMANCE MEASUREMENT AND MANAGEMENTOBJECTIVES ARE TO IMPROVE RESPONSIVENESS, REDUCE CYCLE TIME, IMPROVE QUALITY

*INSPECTIONINSPECTION IS CONFORMITY EVALUATION BY OBSERVATION AND JUDGEMENT ACCOMPANIED BY MEASUREMENT AND TESTINGUNDER AN INSPECTION BASED SYSTEM ONE OR MORE CHARACTERISTICS OF A PRODUCT PROCESS OR ACTIVITY ARE EXAMINED, MEASURED, TESTED OR ASSESSED AND COMPARED WITH SPECIFIED REQMNT TO ASSESS CONFORMITY WITH SPECS OR PERF. STDS

*INSPECTIONIN SERVICE, SYSTEM IS APPLIED AT KEY POINTS CALLED APPRAILSAL POINTSINSPECTION CARRIED OUT THROUGH SELF INSPECTION OR AT END OF ACTIVITYAFTER EVENT SCREENING PROCESS WITH NO PREVENTION CONTENT OTHER THAN IDENTIFYING NON CONFORMING ENTITIESEMPHASIS IS ON REACTIVE QUICK FIX CORRECTIVE ACTIONS AND THINKING IS DEPARTMENT BASEDDOES NOT INVOLVE SUPPLIERS OR CUSTOMERS

*DIFFERENT WAYS OF PERFORMING INSPECTIONINSPECTION PROCESS - INTERNAL INSPECTION: INSPECTION CONDUCTED AS PART OF THE OPERATION OR WORK PROCESS (E.G. AN ASSEMBLER NOTING HOW WELL PARTS FIT TOGETHER) - EXTERNAL INSPECTION: INSPECTION CONDUCTED SEPARATE FROM THE OPERATION (E.G. AN INSPECTOR MEASURING PARTS FOR TOLERANCE FIT)INSPECTION MEASUREMENT - SENSORY INSPECTION: INSPECTION BY HUMAN SENSES, INCLUDING TOUCH, VISION, HEARING, TASTE, SMELL, OR PERCEPTION (E.G. LOOKING FOR SCRATCHES ON LENSES, GENERAL PERCEPTION OF THE QUALITY OF ROOM SERVICE IN A HOTEL) - PHYSICAL INSPECTION: INSPECTION WITH INSTRUMENTS OR DEVICES (E.G. CALIPERS, LASERS, SCALES, THERMOMETERS)

*DIFFERENT WAYS OF PERFORMING INSPECTIONPOPULATION INSPECTED - 100% INSPECTION: INSPECTION OF EVERY ITEM OR UNIT IN THE POPULATION (WHERE POPULATION REFERS TO A PARTICULAR LOT OR BATCH OF ITEMS OR ITEMS PRODUCED BY A PARTICULAR PROCESS). THIS IS ALSO CALLED SCREENING. - SAMPLE INSPECTION: INSPECTION OF A FRACTION OR SUBSET OF THE POPULATION; THE RESULT IS USED TO MAKE AN INFERENCE ABOUT THE ENTIRE POPULATION.INSPECTION JUDGEMENT - SUBJECTIVE INSPECTION: INSPECTION AND CONCLUSIONS MADE BY THE PERSON WHO ALSO DID THE WORK; ALSO CALLED SELF-INSPECTION. - OBJECTIVE INSPECTION: INSPECTION PERFORMED BY SOMEONE OTHER THAN THE PERSON WHO DIE THE WORK. IT INCLUDES AUTOMATED INSPECTION (MECHANICAL DEVICES) AND SUCCESSIVE INSPECTION (INSPECTION BY DOWNSTREAM WORKERS)

*DIFFERENT WAYS OF PERFORMING INSPECTIONQUALITY CHARACTERISTICS INSPECTED - VARIABLES INSPECTION: INSPECTION OF A FEATURE THAT IS REPRESENTED AND MEASURED WITH A CONTINUOUS NUMBERING SYSTEM OR SCALE (E.G. PHYSICAL DIMENSIONS, AND FEATURES SUCH AS WEIGHT, PRESSURE, AND TEMPERATURE) - ATTRIBUTES INSPECTION: INSPECTION OF A FEATURE THAT FALLS INTO A SIMPLE CLASSIFICATION SCHEME (E.G. CONFORMING OR NONCONFORMING, DEFECTIVE OR NONDEFECTIVE, POOR/AVERAGE/GOOD, HIGH OR LOW)

*ASPECTS OF INSPECTIONINSPECTION ITSELF ADDS NO VALUE AND IS WASTEFULHOWEVER INSPECTION CAN NEVER BE TOTALLY ELIMINATED (EVEN DEFECT FREE PROCESSES REQUIRE INSPECTION TO ENSURE THEY STAY THAT WAYMINIMISE INSPECTION THROUGH ATTENTION TO QUALITY OF DESIGN AND QUALITY OF INPUTSFREQUENCY OF INSPECTION AND PLACES IN THE PROCESS THAT NEED INSPECTION CAN BE REDUCED WHILE QUALITY OF OUTPUT IS INCREASED

*ASPECTS OF INSPECTIONINSPECTION CAN BE CARRIED OUT AS A PART OF AN OPERATION OR WORK PROCESSINSPECTION CAN BE DONE PHYSICALLY OR BY DEVICESQUANTITATIVELY INSPECTION CAN BE 100% OR SAMPLINGINSPECTION IS ALSO DONE BY AN OPERATOR IN THE ASSEMBLY LINE (SUBJECTIVE) OR BY A QUALITY CHECKER AT THE END OF THE LINE (OBJECTIVE)

*CHARACTERISTICS OF INSPECTIONPRIMARY CONCERN IS DETECTIONEMPHASIS IS PRODUCT UNIFORMITYMETHOD IS GAUGING AND MEASUREMENTROLE OF QLTY INSPECTOR IS INSPECTION AND ACCEPTANCE SAMPLINGRESPONSIBILITY IS INSPECTION DEPARTMENT

*QUALITY CONTROLDETAILED PRODUCT SPECIFICATIONS ESTABLISHED AND PROCEDURES AND CONTROL SYSTEMS IN PLACE ALONGWITH STAGEWISE PRODUCT TESTING AND REPORTING ACTIVITIES, LOGGING OF PROCESS PERF. DATA AND FEEDBACK OF PROCESS INFORMATIONWITH QUALITY CONTROL THERE WILL BE A DEVIATION FROM EARLIER INSPECTION METHODS BY WAY OF SELF INSPECTION BY OPERATORS (PREVENTING DEFECTS FROM PASSING DOWN THE LINE), USE OF INFORMATION AND TOOLS TO PREVENT OFF SPECIFICATION PRODUCTS FROM BEING DELIVERED TO CUSTOMERS

*QUALITY CONTROLQUALITY CONTROL MEASURES LEAD TO GREATER PROCESS CONTROL AND LOWER INCIDENCE OF NON CONFORMANCEORGS WHOSE APPROACH TO QLTY IS BASED ON INSP & QLTY CONTROL OPERATE IN DETECTION TYPE MODE (FINDING & FIXING PROBLEMS) IN DETECTION ENVT EMPHASIS IS ON PROCEDURES - IT IS ABOUT GETTING RID OF THE PROJECTS AFTER THEY HAVE OCCURRED - CONSIDERABLE EFFORT IS SPENT ON AFTER THE EVENT INSPECTING, TROUBLESHOOTING, CHECKING, TESTING AND PROVIDING REACTIVE QUICK FIXES - DETECTION WILL NOT IMPROVE QLTY BUT ONLY HIGHLIGHTWHEN IT IS NOT PRESENT - PROBLEMS ARE CONTAINED BUT NOT ELIMINATED AND ARE LIKELY TO REPEATORGS OPERATING IN DETECTION MANNER ARE PREOCCUPIED WITH SURVIVAL

*QUALITY CONTROL MATRIX

AREA OF RESPONSIBILITY PERSON -DETERMINE CUST NEEDS MKTNG -QLTY LEVELS FOR BUSINESS TOP MGT - PRODUCT DESIGN SPECS ENGG -MFG PROCESS DESIGN MFG -PRODUCE QLTY GOODS MFG -DETERMINE PROCESS CAPABILITY QC -QUALIFY SUPPLIERS ON QLTY MATRLS -QLTY SYSTEMS PLANNING TOP MGT + QC -PLAN INSPECTION QC -FEEDBACK QLTY INFO QC -ADDRESSING QLTY COMP[LAINTS QC -CALCULATE QLTY COSTS FINANCE -ANALYZE QLTY COSTS QC -MEASURING QLTY QC

*PROCESSES FOR QLTY CONTROLIDENTIFY CUSTOMERS AND THEIR NEEDSDEVELOP PRODUCT FEATURESESTABLISH QUALITY GOALSDEVELOP PROCESS FEATURESESTABLISH PROCESS CONTROLS

*QUALITY CONTROL FOR TQM CHOOSE UNITS TO MEASURESET GOALSMEASURE ACTUAL PERFORMANCEINTERPRETE THE DIFFERENCETAKE ACTION ON THE DIFFERENCE

*CHARACTERISTICS OF QUALITY CONTROL(SQC)PRIMARY CONCERN IS CONTROLPRODUCT UNIFORMITY WITH REDUCED INSPECTIONWIDE USAGE OF SQC TOOLSRESPONSIBILITY IS MFG AND ENGG

*QUALITY ASSURANCEQUALITY ASSURANCE IS A PREVENTIVE BASED SYSTEM WHICH IMPROVED PRODUCT/ SERVICE BY ELIMINATING THE ROOT CAUSE OF PROBLEMLASTING AND CONTINUOUS IMPROVEMENT IN QUALITY CAN BE ACHIEVED BY DIRECTING ORG EFFORTS TOWARDS PLANNING AND PREVENTING PROBLEMS FROM OCCURING AT SOURCEQA FOCUSES ON PROVIDING CONFIDENCE THAT QLTY REQMNTS WILL BE FULFILED (ISO 9000:2000)

*QUALITY ASSURANCEADDL FEATURES REQD WHEN PROGRESSING FROM QC TO QA ARE QMS TO INCREASE CONFORMITY, SEVEN QLTY CONTROL TOOLS, SPC, FAILURE MODE EFFECT ANALYSIS AND QLTY COSTSACCENT IS ON PREVENTION OF NON CONFORMANCE EMPHASIS IS ON DESIGN IMPROVEMENT, PROCESS CONTROL IMPROVEMENT, ETC.QA IS A PREVENTION BASED SYSTEM WHICH INCREASES PRODUCTIVITY BY EMPHASISING ON DESIGN ASPECTS OF PRODUCT / SERVICE

*QUALITY ASSURANCEBY INTEGRATING QLTY INTO PLANNING & DESIGN STAGE IT STOPS NON CONFORMITY FROM OCCURING PROACTIVE APPROACH WHICH LOOKS AT PROCESS CONFORMITIES RESULTING IN PRODUCT CONFORMITIESSIX SIGMA ADVOCATES A METHODOLOGY CALLED PDCAQLTY CREATED AT DESIGN STAGE CHANGING FROM DETECTION TO PREVENTION REQUIRES NEW OPERATING PHILOSOPHY SUCH AS CROSS FUNCTIONAL TEAMS AND ROOT CAUSE ANALYSIS

* PLANNING FOR QLTY ASSURANCE ACTIVITY OF DEVELOPING PRODUCTS AND PROCESSES REQD TO MEET CUSTOMER NEEDSINVOLVES FOLLOWING STEPS: -ESTABLISH QLTY GOALS AND IDENTIFY CUSTOMERS WHO WILL BE IMPACTED BY EFFORTS TO MEET GOALSDETERMINE CUSTOMER NEEDSDEVELOP PRODUCT FEATURES THAT RESPOND TO CUSTOMER NEEDSDEVELOP PROCESSES TO PRODUCE PRODUCT FEATURESESTABLISH PROCESS CONTROLS AND TRANSFER RESULTING PLANS TO OPERATING FORCES

*CHARACTERISTICS OF QUALITY ASSURANCEPRIMARY CONCERN IS COORDINATIONEMPHASIS IS ON ENTIRE PRODN CHAINMETHODS ARE PROGRAMS AND SYSTEMSQLTY MSRMNT PLANNING DONE BY QLTY PROFESSIONALSALL DEPTS HAVE RESPONSIBILITY

*COMPANYWIDE QUALITY CONTROL(SQM)QLTY INITIATIVE LAUNCHED COMPANYWIDE IS ALSO CALLED COMPANYWIDE QLTY CONTROLAVENUE THRU WHICH KAIZEN PURSUEDBUILDING BLOCKS OF CWQC ARE INFRASTRUCTURE AGILITY, PEOPLE COMPETENCE AND PROCESS CAPABILITYCWQC IS A MEANS TO PROVIDE GOOD AND LOW COST PRODUCTS PASSING ON THE BENEFITS TO THE STAKEHOLDERSCWQC REFERS TO : -QLTY OF HUMAN BEHAVIOUR -QLTY OF WORK DONE -QLTY OF MGT -QLTY OF WORK ENVT -QLTY OF PRODUCT AND SERVICE -QLTY OF TRG -QC ACTIVITIES - CWQC SELF APPRAISAL AUDITS SUCH AS MBNQA -APPLICATION OF STATISTICAL METHODS

*CHARACTERISTICS OF CWQCQUALITY NOT PROFIT FIRSTCONSUMER ORIENTED NOT PRODUCER ORIENTED QCNEXT PROCESS IS THE CUSTOMERWORK WITH FACTS AND DATA AND APPL OF SQC TOOLS

*SALIENT FEATURES OF CWQC TQC WITH ALL EMPLOYEE PARTICIPATIONEMPHASIS ON EDUCATION AND TRGQLTY CTRL CIRCLE ACTIVITIESCWQC AUDITSUSAGE OF INTERNATIONAL QLTY FRAMEWORKS TO ASSESS READINESS OF PROCESSES TO MEET CUSTOMER REQUIREMENTS

*BENEFITS OF CWQCPROVIDE PRODUCTS,SERVICES THAT MEET CUST REQMNTHIGHER PROFITABILITY THRU IMPROVED WORK PROCEDURES FEWER DEFECTS,LESSER COSTSHELP EMPL ACHIEVE CORPORATE GOALSSAVINGS IN ENERGY AND OTHER RESOURCESHIGHER EFFECTIVENESS OF RESOURCESIMPROVEMENT IN PROCESS THRUPUTENHANCED CUSTOMER HAPPINESS

*CHARACTERISTICS OF SQMPRIMARY CONCERN IS STRATEGIC VIEWEMPHASIS ON MKTS AND CUSTOMER NEEDSMETHODS ARE STRATEGIC PLANG GOAL SETTINGQLTY PROFESSIONALS DO GOAL SETTIG TRG AND CONSULTATIONALL EMPLOYEES HAVE RESPONSIBILITY

*LEVELS OF TQM ADOPTIONSIX LEVELS OF TQM ADOPTION -UNCOMMITED -DRIFTER -TOOL PUSHER -IMPROVER -AWARD WINNER -WORLD CLASSLEVELS SIGNIFY CHARACTERISTICS AND BEHAVIOUR WHICH ORG DISPLAYS IN RELATION TO TQM

*LEVEL 1-UNCOMMITTEDNO FORMAL PROCESS OF QLTY IMPROVEMENT AND PROBABLY USE SOME SQC METHODS UNDER CUSTOMER PRESSUREQLTY IMPROVEMENT IS SEEN AS AN EXTERNALLY IMPOSED CONTRACTUAL REQMNT AND AN ADDITIONAL COSTFOCUS ON MAS PRODUCT PRODUCTION NOT PROCESSCORRECTIVE AND PREVENTIVE ACTION TAKEN ONLY IN RESPONSE TO COMPLAINTS

*LEVEL 1-UNCOMMITTED CHARACTERISTICSEMPHASIS ON RETURN ON SALES AND ASSETS AT THE EXPENSE OF OTHER MEASURED FINANCIAL AND NON FINANCIAL METRICSMEETING OUTPUT AND SALES TARGET WHATEVER THE COSTLACK OF QA REGULATING SYSTEM RESULTING IN QLTY ASPECTS BEING DISCARDED AND HIGH INCIDENCE OF INTERNAL AND EXTERNAL FAILUREEMPLOYEES SEE QLTY AS SOMEBODY ELSES JOB AND DONT FEEL RESPONSIBLE FOR QLTY OF THEIR OUTPUTINEFFECTIVE AND INACCURATE CORRECTIVE ACTION CONTROL PROCEDURESPIECEWORK INCENTIVE REWARDS QTY AND NOT QLTYSAME PROBLEMS RECUR WITH NO FORMAL PROCEDURES FOR PERMANENT FIXESPROCESS ACTIVITY INTRICACIES NOT UNDERSTOODPASS THE BUCK METHODOLY FOR BLAME

*LEVEL 2-DRIFTERSENGAGED IN PROCESS OF CONTINUOUS IMPROVEMENT FOR SOME TIMEMAY BE CONTEMPLATING ONE OF THE QLTY FRAMEWORKS

*LEVEL 2-DRIFTERS CHARACTERISTICSCONTINUOUS IMPROVEMENT NOT INTEGRATED WITH BUSINESS AND DEPARTMENTAL OBJECTIVESTQM NOT PENETRATED TO SHOP FLOOR AND OFFICE LEVELSMGT SUSCEPTIBLE TO LATEST MGT FADSQLTY DEPT HAS LOW STATUS IN ORGINADEQUATE REPORTING OF DEFECTS , FEEDBACK AND LACK OF CLARITY ON WHAT REAL NON CONFORMANCE AND DEFECTS AREGAPS IN PEOPLE UNDERSTANDING OF TQMDRIFT FROM ONE INITIATIVE TO ANOTHER WITHOUT CONSOLIDATING

*LEVEL 3-TOOL PUSHERSHAS MORE OPERATING EXPERIENCE OF QLTY ENVT GENERALLY HAS IMPLEMENTED QMS AND EMPLOYS TOOLS AND TECHNIQUES SUCH AS SQC AND 7 QC TOOLSSEVERAL ORGS AT THIS LEVEL USE EXCELLENCE MODELS

*LEVEL 3-TOOL PUSHERS CHARACTERISTICSIMPLEMENTATION OF SPC,FMEA,DOE AND BENCHMARKINGCONTINUOUS IMPROVEMENT EFFORT CONCENTRATED IN MFG OPERATIONS WITH OTHER DEPTS LES INVOLVED IN IMPROVEMENT EFFORTSDETAILED QLTY PROCEDURES ARE IN PLACE AND FOCUS IS ON CONTROL. EMPHASIS IS ON SOLVING CURRENT PROBLEMSSHORT TERM RESULTS REGARDING PRODUCT OUTPUT AND QLTY RESULTING IN REACTIVE SOLUTIONS AND NEGLECT OF LONG TERM ROOT CAUSE IMPROVEMENT

*LEVEL 4-IMPROVERSENGAGED IN PROCESS OF CONTINUOUS IMPROVEMENT FOR A LONG TIMERECOGNISE THE IMPORTANCE OF CUSTOMER FOCUSED CONTINUOUS IMPROVEMENT

*LEVEL 4-IMPROVERS CHARACTERISTICSPOLICY DEPLOYMENT AND PROBLEM SOLVING INFRASTRCTRE IN PLACE AS WELL AS A PROACTIVE QLTY SYSTEMHIGH DEGREE OF CLOSED LOOP ERROR PREVENTION THROUGH CONTROL OF PROCESSESPROCESS IMPROVEMENT ACTIVITIES EXIST BENCHMARKING STUDIES DONEREAL PROGRESS MADE

*LEVEL 5-AWARD WINNERSWINNERS OF MBNQA,EFQM,DEMING ETCHIGH DEGREE OF REALISED PROCESS CAPABILITY AND EFFECTIVENESS

*LEVEL 5-AWARD WINNERS CHARACTERISTICSBUSINESS PROCESSES ARE EFFICIENT EFFECTIVE RELIABLE AND AGILEPROCESSES RESPONSIVE TO CUSTOMER NEEDSEFECTIVE CROSS FUNCTIONAL PROCESSESTQM VIEWED BY ALL EMPLOYEES AS A WAY OF MANAGING BUSINESS TO SATISFY AND DELIGHT INTERNAL AND EXTERNAL CUSTOMERSPERCEPTIONS OF KEY STAKEHOLDERS ACTED UPON FOR IMPROVEMENT

*LEVEL 6-WORLD CLASSTOTAL INTEGRATION OF CONTINUOUS IMPROVEMENT AND BUSINESS STRATEGY TO DELIGHT CUSTOMER

*LEVEL 6-WORLD CLASS CHARACTERISTICSCOMPANY VALUES UNDERSTOOD BY ALL EMPLOYEES CUSTOMERS SUPPLIERSRIGHT THINGS DONE RIGHT FIRST TIME EVERY TIMEWASTE IS NOT TOLERATEDKEY PROCESSES OF ORG ALIGNED WITH LONG TERM GOALS AND VISION TO CREATE AN ENVIRONMENT CONDUCIVE TO IMPROVEMENTCAPABILITY TO PREDICT AND RESPOND TO CHANGING MKT CONDITIONS, CUSTOMER NEEDS AND REQMNTSCOMPETE AND WIN AGAINST THE BEST WORLD WIDEINDUSTRY LEADERS IN THEIR SPACE

*DEMING PDCAPDCA IS PLAN DO CHECK ACTPLAN -IDENTIFY PROBLEM BY FACTS AND DATA -COLLECT DATA AND DETERMINE GOALS TO BE ACHIEVED -ANALYSE PROBLEM AND POSSIBLE CAUSES AND ISOLATE ROOT CAUSEDO -REMEDIAL STEPS FOR ERADICATION OF ROOT CAUSE OF PROBLEM CHECK -CHECK,MEASURE,ANALYSE AND MONITOR RESULTSACT -STANDARDISE IMPROVEMENTS -CONTINUOUS REVIEW AND IMPROVEMENT

*QUALITY IMPROVEMENT FOR TQMDIAGNOSE THE CAUSES OF POOR QLTYPROVIDE EFFECTIVE REMEDIESEFFECT CONTINUOUS IMPROVEMENT

*QUALITY AUDIT AND REVIEWAUDIT IS THE MEANS BY WHICH MGT DECIDES WHETHER PEOPLE ARE CARRYING OUT DUTIES AS PER MGT PLANREVIEW IS MEANS BY WHICH MGT DETERMINES WHETHER ORG IS EFFECTIVE IN MEETING CORPORATE GOALS(INCR MKT SHARE ETC)

*QUALITY AUDITSSYSTEMATIC AND INDEPENDENT EXAMINATION TO DETERMINE WHETHER QUALITY ACTIVITIES COMPLY WITH PLANNED EXPECTATIONS AND ARE IMPLEMENTED EFFECTIVELY TO ACHIEVE OBJECTIVESQUALITY AUDITS APPLY TO PRODUCTS,PROCESSES AND SERVICESAUDITS CONDUCTED INTERNALLY AND EXTERNALLYAUDITS ARE 1ST PARTY,2ND PARTY OR 3RD PARTY1ST PARTY AUDITS CONDUCTED INTERNALLY2ND PARTY AUDITS CONDUCTED BY CUSTOMER3RD PARTY AUDITS CONDUCTED BY OUTSIDE PARTIES GENERALLY AUTHORIZED TO CERTIFY A CLIENT FOR COMPLIANCE

*TYPES OF AUDITSCOMPLIANCE AUDIT TO STANDARDS SUCH AS ISO 9000,ISO 14000,OSHAS 18000,SA 8000 ,SIGMA,CMM,P-CMM,COMPLIANCE AUDITS TO REGULATORY REQMNTS SUCH AS GAAP,BASEL 2 ETCADEQUACY AUDIT IS AN EXERCISE WHICH DETERMINES THE EXTENT TO WHICH THE QLTY PROCEDURES ADEQUATELY MEET THE REQMNT OF COMPLIANCE STDSCONTROL AUDIT FOR ENSURING ACCURACY AND HONESTY OF FINANCIAL TRANSACTIONS WHICH UPDATE FINANCIAL FIGURES PUBLISHED IN THE BALANCE SHEET EG SOX 404,CLAUSE 49,SAS 300, AAS ETCPROCESS RISK AUDITS WHICH ANALYSE THE VARIOUS RISKS OF EVENTS NOT HAPPENING AND THEIR CONSEQUENCES,IMPACT AND REMEDIESFINANCIAL AUDITS EG INTERNAL AND EXTERNAL COST AUDITS SATISFACTION AUDITS EG IBM REVERSE APPRAISALS

*MAIN FEATURES OF QLTY AUDITENTAILS SYSTEMATIC EVALUATION OF ACTIVITIES RELATED TO QLTY MGTPERSONS NOT ASSOCIATED WITH PROCESS CARRY OUT AUDITPROCESS OF AUDIT DETERMINES WHETHER -DOCUMENTATION MEETS THE DEFINED QLTY OBJECTIVE OF THE ORGANIZATION -ACTIVITIES PERFORMED ARE IN CONFORMITY WITH THE DOCUMENTED SYSTEM -QLTY SYSTEM IS EFFECTIVE WITH RESPECT TO DOCUMENTATION AND ITS IMPLEMENTATION IN MEETING THE DEFINED QLTY OBJECTIVES -STATUTORY AND SAFETY REQMNT ARE BEING FULFILED

*AUDIT OBJECTIVESDETERMINE CONFORMITY OR NON CONFORMITY OF QLTY SYSTEMS ELEMENTS WITH SPECIFIED REQMNTDETERMINE EFFECTIVENESS OF IMPLEMENTED QLTY SYSTEM IN MEETING SPECIFIED QLTY OBJECTIVEAFFORD OPPORTUNITY TO IMPROVE QLTY SYSTEMEVALUATE A SUPPLIER TO ESTABLISH A CONTRACTUAL RELATIONSHIP AND VERIFY THAT SUPPLIERS QLTY SYSTEM MEETS REQMNTDETERMINE ADEQUACY,SUITABILITY AND EFFECTIVENESS OF SYSTEMAID PROBLEM SOLVINGHELP IN ESTABLISHING CAPABILITY OF PROCESSENSURE MEETING STATUTORY REQMNT

*TQM IMPLEMENTATION FRAMEWORKCOMPANY GOALS AND STRATEGIESGOAL TRANSLATION INTO ACTIVITIES AND MEASURESPROCESS MAPPINGPROCESS MEASUREMENTBENCHMARKINGGAP ANALYSISBUSINESS PROCESS AUDIT AND REENGINEERINGMEASURING PROGRESSCONTINUOUS IMPROVEMENT AND FEEDBACK*THESE ACTIVITIES CAN BE CLUBBED INTO 4 CATEGORIES

*TEN POINTS FOR FOUNDATION OF TQM FRAMEWORKLONG TERM COMMITMENT TO CONTINUAL IMPROVEMENTADOPT ZERO DEFECT PROGRAM TO CHANGE CULTURE TO RIGHT FIRST TIMETRAIN PEOPLE TO UNDERSTAND CUSTOMER-SUPPLIER RELATIONSHIPSDO NOT BUY PRODUCTS AND SERVICES ON COST ALONE-LOOK AT THE TOTAL COSTRECOGNIZE THAT IMPROVEMENT OF THE SYSTEMS NEEDS TO BE MANAGEDADOPT MODERN METHODS OF SUPERVISION AND TRAINING AND ELIMINATE FEARELIMINATE BARRIERS BETWEEN DEPTS BY MANAGING THE PROCESSELIMINATE ARBITRARY GOALS WITHOUT METHODS,STANDARDS BASED ON NUMBERS,BARRIERS TO PRICE OF WORKMANSHIP,GET FACTS BY USING CORRECT TOOLSCONSTANTLY EDUCATE AND RETRAIN AND DEVELOP EXPERTS IN THE BUSINESSDEVELOP A SYSTEMATIC APPROACH TO MANAGE THE TQM IMPLEMENTATION

*CATEGORIES OF ACTIVITIES IN FRAMEWORKORGANISING -LONG TERM STRATEGY FOR TQM FORMULATED AND INTEGRATED INTO OTHER STRATEGIES WHICH INCLUDES A QLTY POLICY -CONTINUOUS IMPROVEMENT SCHEME DEVELOPED -STAGES OF IMPROVEMENT ACTIVITIES IDENTIFIED -VISION,MISSION STATEMENTS DEVELOPED -COMMON ORG DEFINITION OF QLTY -ESTABLISHMENT OF FORMAL PROCESSES FOR QLTY ASSESSMENT AND CONTROLS

*CATEGORIES OF ACTIVITIESSYSTEMS AND TECHNIQUES -INVOLVES DEVELOPMENT OF QMS TO PROVIDE CONTROLS -IDENTIFY TOOLS FOR CONTINUOUS IMPROVEMENT -IMPL FORMAL QLTY SYSTEMS - KEY BUSINESS PROCESS ANALYSIS AND IMPROVEMENT BASED ON MEASUREMENT

*CATEGORIES OF ACTIVITIESMEASUREMENT AND FEEDBACK -ENABLES VOICE OF CUSTOMER TO BE TRANSLATED INTO MEASURE OF PERFORMANCE WHICH ORG NEEDS TO CONTROL AND IMPROVE -DEALS WITH INTERNAL MEASURES OF PERFORMANCE -KEY INTERNAL AND EXTERNAL PERFORMANCE MSRS DEFINED TO ASSESS PROGRESS MADE AND TO ENSURE THAT CUSTOMERS ARE SATISFIED -DEFINE CUSTOMER EXPECTATIONS IN PERFORMANCE -BENCHMARK FOR IMPL , CTRL, IMPR -LINK REWARDS TO IMPR AND RESULTS -ASSESS PROGRESS TOWARDS WORLD CLASS PERFORMANCE eg MALCOLM BALDRIDGE NATIONAL QLTY AWARD -ENSURE THAT GAPS BETWEEN ACTUAL PERFORMANCE AND CUSTOMER EXPECTATION ARE IDENTIFIED,ANALYSED AND ADDRESSED -COMPLAINTS FROM CUSTOMERS ADDRESSED

*CATEGORIES OF ACTIVITIESCULTURE CHANGE -ASSESS CURRENT ORG CULTURE -DEVELOP PLAN FOR CHANGE -CHANGE SHOULD BE PLANNED AND TAKE PLACE IN INCREMENTAL MANNER -FOCUS ON ROLE OF PEOPLE WITHIN ORG -RECOGNISE ONGOING CULTURAL CHANGES -CHANGE PLANS INCREMENTALLY -CONSIDER INTER RELATIONSHIP OF ALL ACTIVITIES IN ORG -IDENTIFY FACTORS WHICH INDICATE CULTURE CHANGE

*HOUSE OF TQMROOF-QLTY PLANNING -WORLD CLASS ORG VISIONPILLARS-STATISTICAL PROCESS AND QLTY CONTROL -MGT CONTROL SYSTEMSFOUNDATION-CONTINUOUS IMPROVEMENT -ADDED VALUE MGT ACTIVITY EMPLOYEE INVOLVEMNTFOUNDATION SYMBOLISES MOTIVATIONAL APPROACH AND QUEST FOR CONTINUOUS IMPROVEMENTROOF IS INDICATIVE OF QLTY ASSURANCE AND CUSTOMER SATISFACTIONPILLARS-SIGNIFY TECHNIQUES AND METHODS USED TO ACHIEVE OBJECTIVES

*PRINCIPLES GOVERNING TQM SYSTEMSCUSTOMER FOCUSED APPROACH THAT ENSURES THAT ALL ACTIVITIES AND PROCESSES ARE FOCUSED TOWARDS ADDRESSING CUSTOMER NEEDSSTRATEGIC PLANNING AND LEADERSHIP NEEDED WITH STRONG CUSTOMER ORIENTATION AND ABILITY TO SATISFY STAKEHOLDERSCROSS FUNCTIONAL HORIZONTAL PROCESSES WITH IDENTIFICATION OF INTERNAL AND EXTERNAL CUSTOMERSCONTINUOUS IMPROVEMENT OF ALL PROCESSES TRAINING AND DEVELOPMENT OF PEOPLEEMPOWERMENT OF PEOPLE

*PERFORMANCE MEASURES FOR TQMORG NEEDS QUANTIFIABLE MEASURES OF QLTYMEASURES SHOULD BE AS SEEN BY CUSTOMERPERFORMANCE MEASURES INCLUDE -FIELD FAILURES MTBF -CUSTOMER RETURNS CUSTOMER COMPLAINTS -LOST BUSINESS -NON CONFORMANCE LEVELS QLTY COSTS -EMPLOYEE SATISFACTION ERRORS IN ORDERS ERRORS IN QUOTE ERRORS IN INVOICES RATIO OF SUCCESSFUL QUOTES TO TOTAL QUOTES AGEING OF DEBTS COST OF CAPITAL IN OVERDUE ACR -%INCORRECT RECRUITS -TIME TO RECRUIT -STAFF COMPLAINTS STAFF TURNOVER -RECRUITMENT COST -%NEGATIVE 360 DEGREE APPRAISALS -%GOODS REJECTED -%GOODS SHORTAGE NO ENGG CHANGES TIME TO RESPOND TO QUOTES TURNAROUND TIME FOR REPAIRS -

*KANOS MODEL OF CUSTOMER SATISFACTIONCLASSIFIES PRODUCT ATTRIBUTES BASED ON HOW THEY ARE PERCEIVED BY CUSTOMERAND THEIR EFFECTS ON CUSTOMER SATISFACTIONCLASSIFICATION USEFUL FOR GUIDING DESIGN DECISIONS

*PROJECT ACTIVITIES IN KANO MODELIDENTIFYING CUSTOMER NEEDSDETERMINING FUNCTIONAL REQUIREMENTCONCEPT DEVELOPMENTANALYSING CXOMPETITIVE PRODUCTS

*TOOLS USED IN KANO MODELQUALITY FUNCTION DEPLOYMENTVALUE ANALYSIS

*FEATURES OF KANO MODELDIVIDES PRODUCT ATTRIBUTES INTO 3 CATEGORIES THRESHOLD,PERFORMANCE AND EXCITEMENTA COMPETITIVE PRODUCT MEETS BASIC ATTRIBUTES,MAXIMISES PERFORMANCE ATTRIBUTES AND INCLUDES EXCITEMENT ATTRIBUTES

*KANO MODEL DIAGRAM

*THRESHOLD ATTRIBUTEEXPECTED ATFOR PRODUCT ATRIBUTES OR MUSTS OF A PRODUCT AND DO NOT PROVIDE AN OPPORTUNITY FOR PRODUCT DIFFERENTIATIONINCREASING PERFORMANCE OF ATTRIBUTES PROVIDES DIMINISHING RETURNS IN TERMS OF CUSTOMER SATISFACTIONPOOR PERFORMANCE OF THESE ATTRIBUTES RESULTS IN EEXTREME CUSTOMER SATISFACTION eg BRAKES IN A CARTHRESHOLD ATTRIBUTES NOT CAPTURED IN QFD AND PRODUCTSNOT RATED ON BASIS OF THRESHOLD ATTRIBUTES

*PERFORMANCE ATTRIBUTESATTRIBUTES WHICH WILL ENHANCE CUSTOMER SATISFACTION ABSENCE WILL REDUCE CUSTOMER SATISFACTIONPRICE CUSTOMER WILLING TO PAY IS CLOSELY TIED TO PERFORMANCE ATTRIBUTES eg PAY EXTRA FOR FUEL ECONOMY CARS

*EXCITEMENT ATTRIBUTESUNSPOKEN AND UNEXPECTED BY CUSTOMER BUT RESULTS IN HIGH LEVELS OF CUSTOMER SATISFACTIONABSENCE DOES NOT LEAD TO DISSATISFACTIONSATISFY LATENT WANTSPROVIDING EXCITEMENT ATTRIBUTES CAN RESULT IN COMPETITIVE ADVANTAGE

*OTHER ATTRIBUTESATTRIBUTES OF LITTLE OR NO CONSEQUENCE TO CUSTOMER AND DO NOT FACTOR IN CUSTOMER DECISION eg ENGINE NUMBER AND MFG DATE OF A CAR

*ZERO DEFECT PROGRAMDOING THINGS RIGHT THE FIRST TIME EVERY TIMEPHILOSOPHY THAT BELIEVES IN DEFECT PREVENTION RATHER THAN FINDING AND FIXING DEFECTSUNDERSTAND BASIC SOURCE OF ERROR AND DEFECTSDEFECTS DUE TO LACK OF KNOW-HOW OF JOB,LACK OF FACILITIES OR LACK OF ATTENTIONPRODUCER NOT INSPECTOR TAKES RESPONSIBILITY FOR ADHERING TO OUTPUT SPECS WITHOUT REWORKBELIEVES THAT PREVENTION IS BETTER THAN DETECTION AND CURE AND THAT CURING MEANS DOING NON VALUE ADD ACTIVITIES WHICH NEEDLESSLY ADD TO COSTSCHALLENGES CONCEPT OF AQL HELPS IMPROVE CORPORATE IMAGEDEFECT ELIMINATION THRU IDENTIFICATION OF WHAT IS WRONG,WHY IT IS WRONG,HOW IT IS WRONGSHOULD BECOME A PERSONAL HABIT

*PREREQUISITES FOR ZD PROGRAMAVOIDING CONVERSION OF ERRORS INTO DEFECTSPOSITIVE ATTITUDE OF EMPLOYEESTRUST BETWEEN MGT AND STAFFORGANIZATIONAL QLTY POLICIES AND STRATEGIES UNDERSTOOD BY ALLELIMINATION OF DEFECTS THRU ANALYSIS RATHER THAN BLAME

*CAUSES OF DEFECTSINAPPROPRIATE WORK PROCESSES OR OPERATIONS PROCEDURES OR INADEQUATE FACILITIES AND ENGG SUPPORTEXCESSIVE VARIATIONS IN OPERATIONSINADEQUATE OPERATING SKILLS OR KNOW HOWDEFECTIVE RAW MATERIALINADVERTENT ERRORS BY WORKERSLACK OF DESIRE TO DO ERROR FREE WORK

*RESOLUTION OF DEFECTSIMPROVING WORK PROCESSES AND PROCEDURESGOOD PM AND CONSTANT MONITORING OF EQPMNTSTD OPERATING ROUTINESCONTINUOUS TRG TO OPERATORSENFORCEMENT OF QLTY ASURANCE STDS WITH SUPPLIERS AND MFG

*COST OF QUALITYMOST IMPORTANT CONSIDERATION IN TQMPROVIDES ABILITY TO ENHANCE CORPORATE PROFITCOST OF QLTY IS CARDINAL FOR JUDGEMENT OF PROCESS EFFECTIVENESSQLTY COSTS ARE DIRECTLY PROPORTIONAL TO THE QLTY CONFORMANCE OF THE PRODUCTMEASUREMENT OF COSTS HELPS TO HIGHLIGHT IMPORTANCE OF PRODUCT QLTY;FORMS BASIS OF DECISION MAKING;IDENTIFIES AREAS NEEDING IMPROVEMENT;MEASURES EFFECTS OF ACTIONS TAKEN;QLTY COSTS ARE CATEGORIZED INTO 4 MAJOR CATEGORIES-PREVENTION COSTS;APPRAISAL COSTS;FAILURE COSTS(INTERNAL AND EXTERNAL)

*APPRAISAL COSTSINCURRED TO MEASURE EXTENT OF CONFORMANCE COSTS INCLUDE MEASURING,INSPECTING,TESTING,AND AUDITING PERFORMANCE TO DETERMINE CONFORMANCE TO ACCEPTABLE QLTY LEVELS,STDS OF PERFORMANCE AND SPECIFICATIONS, EVALUATING PURCHASED MATRLAVOIDABLE ACTIVITY

*APPRAISAL COSTSCOSTS INCURRED TO MEASURE EXTENT OF CONFORMANCE AND INCLUDE COSTS MENTIONED BELOW-MEASURING,INSPECTING,TESTING AND AUDITING PERFORMANCE TO DETERMINE CONFORMANCE WITH STDS-QUALIFICATION TESTS FOR DESIGN REQUIREMENTS-EVALUATING PURCHASED ITEMS AND INSPECTION COSTS OF INCOMING MATERIAL-COST OF STORAGE OF MATERIAL AWAITING INSPECTION-EMPLOYEE AND EQUIPMENT PERFORMANCE-IN PROCESS INSPECTION AND CONTROL-FINAL TESTING AND INSPECTION-PRODUCTION TRIALS-MATERIAL CONSUMED DURING INSPECTION AND TESTING-FIELD PERFORMANCE TESTING-MAINTENANCE AND CALIBRATION OF EQUIPMENT-AUDIT OF PREVENTIVE SYSTEM TO ENSURE EFFECTIVENESS

*PREVENTION COSTSAIMED AT PREVENTING DEFECTS AND BUILDING ACCEPTABLE QLTY INTO PRODUCTS AND SERVICESINCLUDES TRAINING, DESIGNING PROCEDURES, VENDOR ASSURANCE EXERCISES,PROCESS CAPABILITY BUILDING ,TRAINING AND CONSUMER RESEARCH ORIENTED AT IMPROVING QLTY,PLANNING QUALITY ASSURANCEPREVENTION IS AVOIDABLE ACTIVITY AND SHOULD BE REPLACED BY TQM WHICH ADVOCATES COST OF BUILDING ACCEPTABLE QLTY PREVENTIVE COSTS INCLUDE DEVELOPMENT AND MAINTENANCE COSTS AS WELL AS QLTY PLANNING WHICH INCLUDESCOSTS INCURRED IN MFG PROCESS ,PROCESS RELIABILITY, PROCEDURE MANUALS,VENDOR DEVELOPMENT COSTS ,ADMIN COSTS,TRAINING COSTS, AND QLTY AUDIT COSTS

*PREVENTION COSTS QLTY PLANNING COSTS SUCH AS MFG PROCESS COSTS EVALUATION OF QLTY PLANS INSP TEST PLANS RELIABILITY AND OTHER PLANS FOR IMPLEMENTING TQM SYSTEMS COST OF PREPARING PROCEDURE MANUALSVENDOR DEVELOPMENT COSTS WHICH IS IDENTIFICATION SELECTION DEVELOPMENT OF VENDORS AS WELL AS COSTS RELATED TO PLANNING WHICH INCLUDES COSTS OF TESTS REQD TO ACCEPT VENDORS PRODUCTSADMIN COSTS INCURRED IN OVERRAL MGTTQM TRG COSTS WHICH INCLUDE QLTY IMPROVEMENT TRG COSTSQLTY AUDIT COSTS REQD TO MEASURE EFFECTIVENESS OF TQM PERFORMANCE

*FAILURE COSTSTWO CATEGORIES: INTYERNAL FAILURE COSTS AND EXTERNAL FAILURE COSTSINTERNAL FAILURE COSTS ARE COSTS INCURRED BECAUSE OF DEFECTS IN PRODUCT BEFORE SHIPMENT TO CUSTOMER AND INCLUDES COSTS SUCH AS: -COST OF SCRAPPING PRODUCT -COST OF REWORK -COST OF LOSS OF PRODUCTIVE TIME LOSS DUE TO DEFECTS SALE -LIABILITY INSURANCE COST OF OPPORTUNITY LOSS EXTERNAL FAILURE COSTS REPRESENTS COSTS INCURRED AFTER DELIVERY TO CUSTOMER AND INCLUDES HEADS SUCH AS COST OF COMPLAINT HANDLING,COST OF REPLACEMENT,WARRANTY COST OF REPAIRS AND EXTENDED WARRANTY,COST OF ADDITIONAL CLAIMS TO BE PAID TO CUSTOMER TO COVER LITIGATION COSTS AND PENALTY COSTS,LOST CUSTOMERS,BAD DEBT,SALES RETURNS

*

*BREAKUP OF QLTY COSTS ATN ASHOK LEYLANDTOTAL QLTY COST IS 8.2% OF REVEXTERNAL COSTS IS 0.2% QLTY ASSURANCE IS 71.1%QLTY INSPECTION IS 12.8%QLTY CONTROL IS 15.9%

*CASE STUDY OF COST OF NON CONFORMTIYINSTALLED CAPACITY OF PRODN /MTH = 1.1 MILLION MTRSPLANNED PRODN FOR MTH AS PER PRODN PLAN = 0.86 MIL MTRACTUAL PRODN (OWING TO BRKDWN IN BOTTLENECK PROCESS) IS 0.79 MIL MTRAV SALES REALIZATION/MTR OF GOOD QLTY IS RS 100/MTROPPORTUNITY LOSS = 0.79 MIL MTRS/MTH = 0.84 MIL MTRS /YROPPORTUNITY LOSS/YR = 0.84 MIL MTR * 100RS/MTR =RS 8.4 CRPLANNED 1ST QLTY FOR MTH WAS 95% ACTUAL OBTAINED 90%QLTY LOSS = 5% FOR MTR. LOSS/2ND QLTY/ MTR = RS 40 QLTY LOSS/YR = 5% * 0.79 * 40 * 12 = RS 1.896 CRTOTAL COST OF NON CONFORMITY = 8.4 + 1.896 =10.296 CR/YRANNUAL TURNOVER = 135 CR%LOSS OF NON CONFORMITY = 10.296/135 = 7.5% OF SALES

*HIDDEN COST OF QLTY POTENTIAL LOST SALES DUE TO QLTYCOST OF REDESIGN DUE TO QLTY REASONSCOST OF CHANGING MFG PROCESS DUE TO INABILITY TO MEET QLTY REQMNTEXTRA MFG COSTS DUE TO DEFECTSUNREPORTED SCRAPEXCESS PROCESS COSTS OF ACCEPTABLE PRODUCTS

*USE OF QLTY COST INFORMATIONQLTY COST INFO CAN BE USED AS FOLLOWS: -IDENTIFY PROFIT OPPORTUNITIES -IMPROVE PURCHASING AND SUPPLIER RELATED COSTS -IDENTIFY WASTE IN ACTIVITIES -IDENTIFY QUALITY PROBLEMSFEATURES OF QLTY COSTS: -CORPORATE TARGET AND NOT INDIVISUAL -GENERALLY NOT MEASURED AT THE POINT OF CAUSE

*MANAGING NON CONFORMITYDISTINCTION TO BE MADE BETWEEN NON CONFORMING AND DEFECTIVENON CONFORMING IS WHEN INTENDED PURPOSE IS MET BUT SOME SPECIFICATIONS ARE NOT MET EG SECONDSDEFECTIVE IS WHEN INTENDED PURPOSE IS NOT MET AND PRODUCT IS UNFIT TO BE USED FOR INTENDED PURPOSES AND SCRAP IS THE ULTIMATE OF DEFECTIVE GOODS

*DEALING WITH NON CONFORMITYDISCOVERY:- STAGE AT WHICH NON CONFORMITY IS DISCOVERED AND INVESTIGATION DONE TO DECIDE WHAT NEEDS TO BE DONE WITH EXISTING UNITS AND HOW TO PREVENT RECURRENCE IDENTIFICATION:-LABELLING OF NON CONFORMING MATRLSEGREGATION:-SEPARATION OF NONC CONFORMING MATRLANALYSIS:-EXTENT OF DEVIATION FROM SPECS /REASONSAPPROVAL:-ACCEPTANCE OF QLTY MATRL AND RETURN OF REJECTED GOODS TO SUPPLIERS OR CONDEMNATION OF UNFIT GOODSACTION:-RETURN NOTE TO SUPPLIER OR SCRAP NOTE OR CORRECTIVE REWORK WORKORDERTRACKING:-TRACKING DEFECTIVE MATRL TO SUPPLIERS

*QLTY COSTINGQUALITY COSTS ARE INCURRED DURING THE ENTIRE PRODUCT LIFECYCLE eg DESIGNING,IMPLEMENTING,OPERATING,MAINTAINING,COSTS INCURRED IN MAKING CONTINUOUS IMPROVEMENT TO PRODUCT/PROCESS AND SUSTAINING QLTYCOSTS INCURRED IN PRODUCT/SERVICE FAILUREQLTY COSTS CAN RANGE FROM 5% TO 25% OF SALESALMOST 90% TO 95% OF THESE COSTS COME FROM APPRAISAL AND FAILURESREDUCING FAILURE COSTS BY ELIMINATING CAUSES OF FAILURE CAN LEAD TO REDUCTION OF APPRAISAL COSTSUSAGE OF ACTIVITY BASED COSTING THRU COST DRIVERS MAKES IT EASIER TO GATHER QLTY RELATED COSTSABC BREAKS DOWN COSTS INTO ELEMENTS CALLED COST DRIVERS eg m/c set upFOR EACH COST DRIVER AN OVERHEAD RATE IS DETERMINEDCOST DRIVERS RESULT IN MORE ACCURATE COSTING AND ENABLES QLTY COST ASSOCIATED WITH AN ACTIVITY TO BE IDENTIFIED

*QUALITY COST PROGRAMSFOR EACH FAILURE OR NON CONFORMANCE THERE IS A COST AND A CAUSECAUSE SHOULD BE DRILLED DOWN TO THE ROOT CAUSE AND CAUSES STUDIED AND PREVENTEDSTRATEGIES FOR ANALYSING QLTY COSTS INCLUDE: -USING ZERO DEFECT PROGRAM TO ELIMINATE FAILURE COSTS -USE CAUSE EFFECT ANALYSIS TO STUDY PATTERN OF FAILURES -ELIMINATION OF FAILURES THRU EFFECTIVE CORRECTIVE ACTION FOR SUCCESSFUL DEPLOYMENT OF TQM ORG NEEDS TO ADOPT QLTY COST PROGRAMS TO BE MORE PRODUCTIVE AND PROFITABLE

*NEED FOR QLTY COST PROGRAM IDENTIFY AND DEFINE QLTY COST ITEMSDESIGN FORMATS FOR COLLECTING COST DATALINK QLTY COST DATA WITH ACCOUNTING SYSTEMANALYSE AND IDENTIFY COST AREAS REQUIRING IMPROVEMENTDEVELOP CORRECTIVE ACTION PROGRAMSIMPLEMENT CHANGESREVIEW AND RECTIFY

*QUALITY CIRCLEPARTICIPATORY MGT PROCESS IN WHICH A SMALL GROUP OF PEOPLE AT GRASS ROOT LEVEL ARE INVOLVEDQC IS A QLTY,PRODUCTIVITY,SAFETY IMPROVEMENT TECHNIQUE QC IS A HRD AND A PROBLEM SOLVING TECHNIQUE AND IS BASED ON THE FACT THAT SUGGESTIONS AFFECTING WORKPLACE SHOULD BEST COME FROM PEOPLE WHO WORK THEREQC IS A GROUP OF PEOPLE FROM DIFFERENT WORK AREAS WHO MEET ON A REGULAR BASIS FOR RESOLVING PROBLEMS RELATED TO QLTY , PRODUCTIVITY, COST REDUCTION,SAFETY,CUSTOMER SERVICE QC IDENTIFIES PROBLEMS OR OPPORTUNITIES FOR FURTHER IMPROVEMENT THRU ANALYSIS OF DATA RELATED TO WORKPEOPLE EXPERIENCE AUTONOMY AT PLACE OF WORK AND CONTROL DECISIONS THAT AFFECT THEM

*CHARACTERISTICS OF QCSMALL GROUPS FORMED IN WORKPLACE WITH MEMBERSHIP BEING VOLUNTARYMEMBERS TRAINED IN PROVBLEM SOLVING TECHNIQUESENABLES MEMBERS TO USE HIDDEN TALENTS,SKILLSENHANCES JOB SATISFACTION THRU CHALLENGES FACED BY WORKERSQC EFFORTS RECOGNISED BY MGTMINIMISES BOREDOM IN WORKPLACE

*OBJECTIVES OF QCIMPROVE QLTY AND PRODUCTIVITY THUS CONTRIBUTING TO IMPROVING AND DEVELOPING ERNTERPRISEREDUCE COSTS OF PRODUCTS BY WASTE REDUCTION,SAFETY,EFFECTIVE UTILIZATION OF RESOURCES,MINIMIZING DEFECTS AND ELIMINATING NON VALUE ADDED ACTIVITIES IDENTIFY AND SOLVE WORK RELATED PROBLEMSMAXIMIZE CREATIVE INTELLIGENCE OF PEOPLE DEVELOP INDIVISUALS AND ASSISTANCE IN SELF ACTUALIZATIONINCREASE EMPLOYEE COMMITMENT AND LOYALTYSHARING OF IDEAS AND EXPERTISE

*QC OPERATION CYCLEBASIC PURPOSE OF QC IS TO IDENTIFY AND SOLVE WORK RELATED PROBLEMSEACH PROBLEM PASSES THRU STAGES SUCH AS: -IDENTIFICASTION SELECTION ANALYSIS -IDENTIFICATION OF SOLUTION WITH ALTERNATIVES -EVALUATION OF RISKS AND PROBABILITY -SELECTION OF SOLUTION -PREPARE ACTION PLANS WITH DESIRED OUTCOMES AND RETURNS -PREPARE BUDGETS FOR RESOURCES DURING IMPL -ALLOCATE RESOURCES TO PROJECT -IMPLEMENTATION,REVIEW AND FOLLOW UP

*S-S PROBLEM SOLVING METHOD

S-S PROBLEM SOLVING METHOD DECREASES UNCERTAINTY BY OFFERING A PROCEDURE OF DEFINING THE REAL CAUSES OF PROBLEMSPROBLEM IDENTIFICATION RESTS UPON UNDERSTANDING THE UNWANTED EFFECTSS-S METHOD HAS A FOUR STEP PROCESS: -PROCESS FLOW ANALYSIS -PROBLEM DEFINITION -IDENTIFICATION OF REAL CAUSE - IMPLEMENTATION OF CORRECTIVE/PREVENTIVE ACTION

*STRUCTURE OF QCSTEERING COMMITTEE WHICH INCLUDES TOP MGT(CEO,VP,GM,HOD)COORDINATORS(I/F BETWEEN TOP MGT AND LINE OPERATORS)FACILITATORS(SHIFT MGR)CIRCLE LEADERS(SR.FOREMAN)CIRCLE MEMBERS(LINE LEVEL WORKERS)INVITEES AND NON MEMBERS

*PROBLEM SOLVING TECHNIQUES IN QCTEAM WORK(BRAINSTORMING)DATA COLLECTION METHODSPARETO ANALYSISFISHBONE DIAGRAM

*QC AND EMPLOYEE EMPOWERMENTEMPLOYEES UNDERSTAND WHAT IS REQD OF THEMTOOLS REQD FOR EXECUTION OF A JOB ARE AVAILABLE TO EMPLOYEESPEOPLE KNOW THE GOALS AND CRITICAL SUCCESS FACTORS

*QC IN ASHOK LEYLANDSELECTION OF PROBLEM WITH MATERIAL LOSS IN WKSHOPQC FORMED TO SOLVE PROBLEM AND MINIMIZE MATRL WASTAGE AND CONSUMPTIONFIGURES RELATED TO LOSSES BEFORE/AFTER QC IMPL BEFORE IMPL AFTER IMPLEXP CONS YRLY 105KG 105KG ACTUAL CONS YRLY 210KG 165KGLOSS KG 105KG 60KGLOSS RS 1.785LACS RS 1.02 LAC RS

*QC IN ASHOK LEYLANDUSING QC CAUSES RELATED TO MAN,M/C,MATRL,METHOD DETECTEDCAUSES RELATED TO MAN :- -LACK OF KNOWLEDGE OF MATRL IMPROPER WK INSTR -EXCESS OPER LACK OF KNOWLEDGE OF OPS/TOOLSCAUSES RELATED TO MACHINES -SUB OPTIMUM CONDITIONS FRICTIONAL WEAR OF PARTS -MISALIGNMENT OF PARTSCAUSES DUE TO METHODS -IMPROPER MATRL HANDLING/STORAGE -LACK OF PROPER STD OPER INSTRCAUSES RELATED TO MATERIALS -IMPROPER SPECS TO SUPPLIERS INADEQUATE INSP METHODSREASONWISE % ATTRIBUTABLE FOR LOSS -MAN 35.7% -M/C 28.6% -METHODA 21.4% -MATERIAL 14.3%

*OBSERVATIONS POST QC IN ASHOK LEYLANDIMPROVED INTER PERSONAL RELATIONSHIP AND TEAMWORKENHANCEMENT OF KNOWLEDGE BASE IN WORKERSMINIMIZED MATERIAL WASTAGE RESULTING IN MONETARY GAINS

*QC IN TOYOTAWIDE USAGE OF QCMEETING ONCE A WEEK FOR 1 HR PEOPLE ENCOURAGED TO GIVE SUGGESTIONSPRINCIPLE OF KAIZEN FOLLOWEDPROBLEMS ADDRESSED INCLUDE SAFETY,COST REDN,QLTY,PRODUCTIVITY,EQPT PERFORMANCECERTAIN AREAS ARE OFF LIMIT EG WAGES,COMPANY OPERATING PRINCIPLES,HR POLICIES,SUPPLIER SELECTION,SALES AND MKTNG POLICIES AND PERSONALITIESHOWEVER PRIVATE SUGGESTIONS IN ABOVE AREAS COULD BE OFFERRED AS KAIZENCREATION OF ANGER VENTING ROOM

*TQM IMPLEMENTATIONFIVE PHASE IMPLEMENTATION -PHASE 0 PREPARATION -PHASE 1 PLANNING -PHASE 2 ASSESSMENT -PHASE 3 IMPLEMENTATION -PHASE 4 DIVERSIFICATION

*PHASE 0 - PREPARATIONDECISION TO IMPLEMENT TQMCOMMITMENT OF TOP MGT AND RESOURCES TO TQM PROJECTSTRATEGIC PLANNING WITH VISION STATEMENT, CORPORATE GOALS,CORPORATE QLTY POLICY AND CORPORATE COMMUNICATIONKEY EXECUTIVE TRAINING

*PHASE 1 - PLANNINGLAYS FOUNDATION FOR PROCESS OF CHANGE WITHIN ORGANISATIONDETAILED IMPLEMENTATION PLAN DEVELOPEDRESOURCE REQUIREMENT DRAWNEXPECTED RESULTS AND OBSTACLE TO SUCCESS IDENTIFIEDPRIORITISE PROCESSESSELECT PROCESSES FOR IMPROVEMENTDEVELOP IMPLEMENTATION PLANS AND BUDGET

*PHASE 2 - ASSESSMENTINVOLVES EXCHANGE OF INFO REQD TO SUPPORT PREPARATION, PLANNING,IMPL,DIVERSIFICATION PHASESEVALUATION OF SWOT FACTOR AT ALL LEVELS IN ORGINPUT FROM CUSTOMER VERY IMPORTANT

*DEVELOP CORPORATE GOALSIMPLEMENT TQMCREATE TECHNICAL EXCELLENCE AND IMPROVE QUALITYINCREASE PRODUCTIVITY OF FORCEIMPROVE FINANCIAL MANAGEMENTREDUCE COST OF MATERIALMAINTAIN CAPITAL PLANT REDUCE OVERHEADS

*STEPS IN PLANNINGFORM TEAMIDENTIFY EXPECTATION OF RESULTSIDENTIFY OBSTACLESFORMULATE CORPORATE OBJDECIDE CORPORATE PERFORMANCE MEASUREMENTSPRIORITISE AND SELECT PROCESSES FOR IMPROVEMENTDEVELOP IMPL SCHEDULE AND BUDGET

*APPROACH TO PRIORITISE PROCESSESADOPTION OF IDEAS FROM EMPLOYEES,CUSTOMERS AND SUPPLIERSIDENTIFICATION OF CHRONIC PROBLEMS

*DETAILS OF PHASE 2SELF ASSESSMENTCUSTOMER SURVEYTQM TRAINING AT ALL LEVELS

*PHASE 3 - IMPLEMENTATIONSELECT AND TRAIN PEOPLE WHO WOULD IMPLEMENT TQMSELECT PROCESSES FOR IMPL-GENERALLY CORE PROCESSESTQM IMPLEMENTATION IN PROCESSES USING INITIATIVES SUCH AS BPI,ISO 9000 etcDATA COLLECTION ANAYSIS AND RECOMMENDATIONSCONTINUOUS IMPROVEMENT

*PHASE 4 - DIVERSIFICATIONSELECT STRATEGIC SUPPLIERSSUPPLIER TRAINING AND CERTIFICATION(SAS 70)SUPPLIER STANDARDISATION

*STAGES OF STRATEGIC SUPPLIER DEVELOPMENTSTEP1-CONFRONTATIONAL ATTITUDESTEP2-ARMS LENGTH RELATIONSHIP WHERE CAUTION GOVERNS RELATIONSHIPCOMING TOGETHER WITH CONGRUENCE IN MUTUAL GOALSFULL BLOWN PARTNERSHIP

*TQM IN MARKETINGTQMMAR INVOLVES CONTINUOUS IMPROVEMENT IN THE MARKETING FUNCTIONCOMPANY OPERATIONS MUST BE COORDINATED AND MATCHED WITH NEEDS OF CUSTOMERSEVERYBODY WHO WORKS FOR THE COMPANY MUST PARTICIPATE IN A TOTAL MARKETING ENVIRONMENT

*TQM MARKETING PROCESSCLARIFY THE VISION IN RELATION TO MKT OPPORTUNITIES eg WHAT SORT OF BUSINESS WE WISH TO BE INSET TANGIBLE GOALS TO EXPRESS WHAT THE COMPANY WANTS TO ACHIEVE eg LOW COST PRODUCER CHALLENGEDEVELOP AWARENESS AND KNOW OF WHERE COMPANY IS NOW,HOW SITUATION HAS EVOLVED AND WHAT TRENDS ARE OPEN IN THE FUTURE eg COMPARITIVE PERCEPTION BETWEEN CUSTOMERS AND SALESMENMAINTAIN BUSINESS ACTIVITIES TO ENSURE THAT STRATEGIES AND TACTICS ARE MUTUALLY REENFORCING eg APPLY DEMING PDCA CYCLE IN STRATEGIC PLANNING AND DEPLOYMENTSET DYNAMIC STANDARDS TO CREATE CLEAR AND CONSISTENT OPERATING MILESTONES WHICH ARE RELEVANT TO CHANGING DYNAMICS OF MKTPLACEPLANNED IMPLEMENTATION DESIGNED TO ENSURE STRATEGIES AND POLICIES ARE PUT INTO PLACE THROUGH MARKETING PLANNING SYSTEMS

*TQM MARKETING AREASMARKETING DATAMARKETING RESOURCESMARKETING PRODUCT/SERVICEMARKETING PRICEMARKETING PLACEMARKETING PROMOTIONMARKETING SALES

*MARKETING DATAPURCHASING CRITERIADISTIBUTION/SELLING METHODSRELATIVE PERCEPTIONS

*MARKETING RESOURCESEFFECTIVE UTILISATION OF CURRENT AND FIXED ASSETSACCURACY OF PRODUCT COSTING SYSTEMSINTEGRATION BETWEEN MKTNG AND SALES

*MARKETING PRODUCT/SERVICESCUSTOMER NEEDS AND WANTSPERFORMANCE EXPECTATIONSPERCEIVED BENEFITS OVER COMPETITIONLEVEL OF QLTY REQUIRED

*MARKETING PRICECONSISTENT AND LOGICAL PRICINGPROCESS FOR CHANGECOST/PROFIT RELATIONSHIPVALUE PERCEPTION

*MARKETING PLACEHOW DO CUSTOMERS ACCESS YOUWHAT LEVELS OF SERVICE ARE CUSTOMERS DEMANDINGHOW IS PERFORMANCE MONITORED AND CONTROLLEDWHAT DISTRIBUTION METHODS ARE REQUIRED

*MARKETING PROMOTIONWHAT IS THE PRODUCT IMAGEIS ADVERTISING COST EFFECTIVEIS TIMING FOR PROMOTION RIGHTWHAT IS THE TARGET AUDIENCE DURING PROMOTION

*MARKETING SALESLEVEL OF ITEGRATION OF SALES WITH MKTNG ACTIVITIESSALESMEANS FAMILIARITY OF CUSTOMER NEEDS AND WANTS AND CAPABILITY TO ADDRESS THEMCUSTOMER CARE PROVIDEDCOST EFFECTIVENESS OF SALES CALLS

*CASE STUDY OF LUCAS INDUSTRY USING TQMMARBENEFITS ARISING OUT OF IMPLEMENTING TQMMAR: -SALES UP BY 36% -PROFIT UP BY 20% -ROA UP BY 5%

*TQM IN PURCHASINGORGANIZATIONWIDE PARTICIPATION IN THE IMPROVEMENT OF THE LOGISTIC PROCESS TO MEET THE NEEDS OF THE CUSTOMERIN MFG COMPANIES AROUND 50% OF PRODUCT COST COMES FROM MATERIAL COSTIN SUPPLY CHAIN AREA PURCHASE QLTY IS CONSIDERED PARAMOUNT TO THE PROFITABILITY OF THE BUSINESS AND HENCE ACCENT ON PURCHASE QLTYPURCHASING NEEDS TO BE HENCE CONSIDERED AS A STRATEGIC FUNCTION

*TQM IN PURCHASINGPURCHASING EFFECTIVENESSPURCHASING EFFICIENCY

*PURCHASING EFFECTIVENESSPURCHASING PRICE/COST DIMENSIONPURCHASING QUALITY DIMENSIONPURCHASING LOGISTICS DIMENSION

*PRICE/COST DIMENSIONMATERIAL COSTS/PRICESCOMPARISONCOORDINATIONTRANSPORTATION

*QUALITY DIMENSIONSPECIFICATIONSREJECTSPURCHASING ENGINEERINGREWORKPRODUCTION STOPS

*LOGISTICS DIMENSIONLEAD TIMESORDER QUANTITYINVENTORIESVENDOR PERFORMANCEDELIVERY PERFORMANCES

*PURCHASING EFFICIENCYPURCHASING ORGANIZATION DIMENSION -WORKLOAD ORDERS/QUOTATIONS -PROCEDURES -INFORMATION SYSTEM -MANAGEMENT -EXPERTISE

*CASE STUDY OF TQMPUR AT ASHOK LEYLAND

RATINGS BY USERS BASED ON IMPORTANCE: -QUALITY 17.51% -PRICE 9.42% -RELIABILITY 22.34% -DELIVERY 24.52% -SERVICE 26.21%

*CASE STUDY OF TQM IMPLEMENTATION AT ASHOK LEYLANDASHOK LEYLAND HAS CHOSEN A TQM MODEL WHICH IS BASED ON THE FOLLOWING PILLARS - TOTAL QUALITY CONTROL - JUST IN TIME - TOTAL PRODUCTIVE MAINTENANCEMODEL DESCRIBED IN THEIR PURSUIT OF WORLD CLASS MFG PURSUITSTEPS - CHANGE MGT & WORKER INVOLVEMENT / OWNERSHIP - BENCHMARKING OF