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Finish Line & Beyond
Definitions & Dimensions
Planning
Quality Costs
TQMHistory
Barriers to TQM
This chapter contains introduction of quality andTotal Quality Management (TQM).
There are following topics :
Definitions & DimensionsPlanning
Quality Costs
TQMHistory
Barriers to TQM Implementation
Quality is a very subjective thing. Sometimes it is
easily visible, sometimes you require an expert to tell
the difference. In the given picture it is easier to tell
that a hygienic burger is of better quality than non-hygienic samosa made of spurious raw-material.
Definitions
ISO 9000: "Degree to which a set of
inherent characteristics fulfillsrequirements."
The standard defines requirement as
need or expectation.
Six Sigma: "Number of defects permillion opportunities."
Philip B. Crosby: "Conformance to
requirements." The requirements may
not fully represent customerexpectations; Crosby treats this as a
separate problem.
There are various definitions of quality given by
various authorities and organizations. Every
definition gives a unique perspective about quality.
These definitions talk about quality meeting pre-set
criteria. It is all about conforming to known
requirements.
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Definitions
Joseph M. Juran: "Fitness for use."
Fitness is defined by the customer.
Noriaki Kano and others, present atwo-dimensional model of quality:
"must-be quality" and "attractive
quality."
Following definitions talk about consumers
perspective. And a consumers top priority is always
to get some functionality from the product.
Definitions
Robert Pirsig: "The result of care."
Genichi Taguchi, with two
definitions:
a. "Uniformity around a target
value."
b. "The loss a product imposes onsociety after it is shipped."
Taguchi talks about lack of variations against set
parameters. As attaining 100% perfection is
impossible in real life situations, so Taguchi talksabout getting as closer to perfection as possible.
Moreover, Taguchi harps on the issue of cost to the
society in the long run if there is bad quality in a
product or service.
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Definitions
American Society for Quality:
"A subjective term for which eachperson has his or her own definition.
In technical usage, quality can havetwo meanings:
a. The characteristics of a product or
service that bear on its ability to
satisfy stated or implied needs;b. A product or service free of
deficiencies."
The definition by American Society talks aboutsubjectivity of quality. For a rural person traveling in
a rickety bus can mean comfort, while for the jet-set
people an AC taxi will give the bare minimumcomfort.
Definitions
Quality of a product or service refers
to the perception of the degree to
which the product or service meetsthe customer's expectations.
Quality has no specific meaningunless related to a specific function
and/or object. Quality is a perceptual,
conditional and somewhat subjective
attribute.
In totality quality means conformance to pre-set
criteria as well as ability to satisfy the end user. If a
pen is unable to write then the diamond studded on it
is of no use.
Dimensions of Quality
Performance: Basic FunctionalAspect
Features: Cant give core benefit
Aesthetics: Look, finish, etc.
Reliability: Lineage
Durability: Optimum life span
The top most dimension of quality is the functionality
of a product. For example a mixer grinder should be
able to grind the hard turmeric, otherwise three speedgear box is of no use to the end user.
Features are like add on benefits, like fancy
attachments provided with the mixer grinder.
A pleasant look will always add value to the product.
If the mixer is from USHA or PHILIPS then it willhelp the customer in buying decision.
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Dimensions of Quality
Serviceability: Ease of getting
servicedSafety: Air Bags
User-friendliness: Windows Vs Linux
Customizability: Lens attachmentNikon
Environmental-friendliness
Take the example of Maruti service centre advt whichtalks about the possibility of finding one in the
remotest corner of India.
The product should be safe and can be handled with
kids globes. Popularity of Windows over other
operating systems is a good example of userfriendliness winning over customers.
Apple i-Pod has options of changing skin which is
ideal for the target group.
Quality Planning
1. Set quality objectives and targets
2. Take into account customers
wants3. Plan about marketability of the
products.
Planning quality starts with setting quantifiable and
measurable targets. While doing this the organization
needs to keep customers wants in mind. Once the
quality objective is decided it is important to thinkabout the market feasibility of the product.
TATA Nano can prove if Ratan Tata was wrong orright when he planned for the peoples car of India.
Quality Planning
Carry out pre-productionprocess capability or quality
deliverability studies.
Once everything is planned the organization needs to
asses its capability to deliver the target quality. If
there is gap in capability then the organization needsto fill that gap by upgrading to the required
technology and skill sets.
Before planning for Chandrayan ISRO must have
thought about its capabilities to build and deliversuch a spacecraft.
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Quality Planning
Establish the relative importance
of the quality characteristics andSpecifications.
Communicate to the productionline people and vendors supplying
the raw materials.
A ranking chart should be developed to finalize themost important aspect of quality planning and more
focus should be given to that aspect.
Communicating the target and plan to frontline
people is important because they are the people who
will implement everything in the real life situation.They should be properly convinced before starting
the new course.
Quality Planning
Establish statistical control
techniques, charts and
sampling plans.
Establish training
programmes.
Plan to monitor the progress of quality programme is
important. This can be done by devising ways and
means to monitor progress and finding deviations.
Costs of Quality:
Maintaining the quality at least
possible cost.
The ultimate goal of an organization is to earn profits.
So keeping the cost at minimum possible level is
important. Otherwise the higher input cost may notpermit the ultimate aim of the organization.
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Cost of quality involves following aspects:1. Cost of Appraisal
2. Cost of Prevention
3. Cost of Failure
Costs of Quality:
Costs of Appraisal:
Inspection,
Testing,Monitoring
Control
This is about assessing the current situation. This will
involve manhour and resources.
Costs of Prevention:
Prevent bad quality output.Plan Precautions
Prevent Bad Raw Material
Prevent Wrong Sampling
Prevention requires manhour as personnel need to be
deployed to inspect the raw material and finished
goods.
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Costs of failure:
Rejects, rework, spoilage,
Customer complaints
Product service
Cost of failure needs to be planned out in advance asno matter how much precautions are taken failures
are part of life.
Analysis of Costs of Quality
Category to category comparison:
Comparing the relative amounts spent
on each of the above mentioned costcategories.
Time to time comparison:
Comparing one quarters operationswith the previous quarters
operations.
The comparative analysis of cost of quality can give
an idea about where to focus more to improve further.
Base for Analysing Costs of Quality
Number of units produced in a
time period
Net sales for that period
Total direct labour costs for
that period
Value added (net sales minus
the direct material cost)
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Total Quality Management
Objective:
Total customer satisfaction
Totality of functions
Total range of products and services
Total means 100%, so TQM is about managing allaspects of quality and ultimate goal should be the
Total Customer Satisfaction.
Every functional area should stick to the quality plan
of the organization and strive to attain the planned
quality target.
Each offering from the organization should be of
optimum quality. Because one rotten apple can spoil
the whole basket.
Total Quality Management
Addressing all aspects of dimensions
of quality
Addressing the quality aspect in
everything products, services,
processes, people, resources andinteractions.
Satisfying all customers internal as
well as external
TQM is about addressing all aspects of dimensions of
quality. If there is a good product in bad packaging it
is not going to give the desired returns to the
organization. A good car with a bad bumper willtarnish the image of the company.
An ill tempered receptionist can turn away potentialcustomers from a nice 5-star hotel.
A satisfied employee will always bring a satisfied
customer, so internal customers are also important.
Total Quality Management
Addressing the total organizationalissue of retaining customers and
Improving profits, as well as
generating new business for the
future.
Involving everyone in theorganization in the attainment of the
said
objective.
Demanding total commitment from
Retaining internal customer is important for better
knowledge management and continuity of the
process. Retaining external customer is important toget repeat sales.
Everybody, right from the shopfloor employee to the
top management, should have total commitment to
the predetermined quality goals.
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all in the organization towards theachievement of the objective.
HISTORY
Effect of Industrialisation onworkmanship
W.A. Shewart (1924)Statistical charts for Bell Tele
H. F. Dodge & H.G. Roming:Acceptance sampling as a
substitute for 100% inspection
in Bell.
1946 American Society forQuality Control formed laterchanged to American Society
for Quality
1960s Japanese managementstarted quality control circles.
Think about quality concept which a road side trinket
seller may be having.
Think about the quality concept your neighbourhoodbarber may be having.
Think about the quality concept which the nearbyDominos may be having.
One can get every bit of history in a wonderful
country like India.
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Barriers to TQM Implementation
Lack of Management Commitment
Inability to Change Culture
Improper Planning
Lack of Continuous Training
If the top management takes quality as a form ofwindow dressing then the organization is not going to
attain the desired goal.
It is difficult but important to change the culture of
the organization. Paradigm change is needed to force
people to strive for the new quality goal.
As quality is a continuous and never ending process,
so is the training.
Barriers to TQM Implementation
Incompatible Organizational
Structure
Isolated Individuals and departments
Ineffective Measurement Techniques
Lack of Access to Data
Inadequate Attention to External &
Internal
Customers
Inadequate Empowerment and
Teamwork
Failure to Continually Improve
People should not live in silos. They should come out
to facilitate better interactions to share knowledge.
People should be empowered to sort out issues. Thiswill reduce the throughput time. Obviously
accountability is important along with empowerment.
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