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Finish Line & Beyond

Introduction to Quality and

Total Quality Management(TQM)

Quality is a very subjective thing. Sometimes it is easily visible, sometimes yourequire 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.

QUALITY

This chapter contains following topics:Definitions & Dimensions

PlanningQuality Costs

TQMHistory

Barriers to TQM Implementation

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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 aboutconforming to known requirements.

Following definitions talk about consumers perspective. And a consumers top

priority is always to get some functionality from the product.


DefinitionsJoseph M. Juran: "Fitness for use." Fitness is defined by the customer.

Noriaki Kano and others, present a two-dimensional model of quality: "must-be quality" and

DefinitionsRobert Pirsig: "The result of care."

Genichi Taguchi:

a. "Uniformity around a target value."

b. "The loss a product imposes on society after it is shipped."

Definitions

ISO 9000: "Degree to which a set of inherent characteristics fulfills requirements."

The standard defines requirement as need or expectation.

Six Sigma: "Number of defects per million opportunities."

Philip B. Crosby: "Conformance to requirements." The requirements may not fullyrepresent customer expectations; Crosby treats this as a separate problem.

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User-friendliness: Windows Vs Linux

Customizability: Lens attachment Nikon

Environmental-friendliness: Less pollution from CFC free refrigerators.

The top most dimension of quality is the functionality of a product. For example amixer grinder should be able to grind the hard turmeric, otherwise three speed gear

box is of no use to the end user.

Features are like add on benefits, like fancy attachments provided with the mixergrinder.

A pleasant look will always add value to the product. If the mixer is from USHA or

PHILIPS then it will help the customer in buying decision.

Take the example of Maruti service centre advt which talks about the possibility of

finding one in the remotest corner of India. This is about reliability and serviceability.

The product should be safe and can be handled with kids globes. Popularity of

Windows over other operating systems is a good example of user friendliness

winning over customers.

Apple i-Pod has options of changing skin which is ideal for the target group shows

the power of customizability in winning over customers.

Quality Planning

1. Set quality objectives and targets

2. Take into account customers wants3. Plan about marketability of the products.4. Carry out pre-production process capability or quality deliverability

studies.5. Establish the relative importance of the quality characteristics and

specifications.6. Communicate to the production line people and vendors supplying the

raw materials.7. Establish statistical control techniques, charts and sampling plans.

8. Establish training programmes.

Planning for quality starts with setting quantifiable and measurable targets. Whiledoing this the organization needs to keep customers wants in mind. Once the quality

objective is decided it is important to think about the market feasibility of theproduct. TATA Nano can prove if Ratan Tata was wrong or right when he planned for

the peoples car of India.

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 needs to fill that

gap by upgrading to the required technology and skill sets.


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Before planning for Chandrayan ISRO must have thought about its capabilities to

build and deliver such a spacecraft.

A ranking chart should be developed to finalize the most important aspect of qualityplanning 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 beproperly convinced before starting the new course.

Plan to monitor the progress of quality programme is important. This can be done by

devising ways and means to monitor progress and finding and correcting 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 not permit

the ultimate aim of the organization.

Cost of quality involves following aspects:

1. Cost of Appraisal2. Cost of Prevention

3. Cost of Failure

Costs of Appraisal:

Inspection,Testing,

MonitoringControl

This is about assessing the current situation. This will involve man-hour and

resources.

Costs of Prevention:

Prevent bad quality output.Plan Precautions

Prevent Bad Raw MaterialPrevent Wrong Sampling

Prevention requires man-hour as personnel need to be deployed to inspect the rawmaterial and finished goods. As per an old saying prevention is always better than

cure, so the organization should strive to prevent bad quality product from going

down the supply chain.


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Costs of failure:

Rejects, rework, spoilage,

Customer complaints

Product service

Cost of failure needs to be planned out in advance as no 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 eachof the above mentioned cost categories.

Time to time comparison: Comparing one quarters operations with the previousquarters operations.

The comparative analysis of cost of quality can give an idea about where to focus

more to improve further.

Total Quality Management

Objective:

1. Total customer satisfaction

2. Totality of functions

3. Total range of products and services

4. Addressing all aspects of dimensions of quality

5. Addressing the quality aspect in everything products, services, processes,

people, resources and interactions.

6. Satisfying all customers internal as well as external

7. Addressing the total organizational issue of retaining customers and

8. Improving profits, as well as generating new business for the future.

9. Involving everyone in the organization in the attainment of the said objective.

10. Demanding total commitment from all in the organization towards the

achievement of the objective.

Total means 100%, so TQM is about managing all aspects of quality and ultimate

goal should be the Total Customer Satisfaction.


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Every functional area should stick to the quality plan of the organization and strive toattain the planned quality target.

Each offering from the organization should be of optimum quality. Because, one

rotten apple can spoil the whole basket.

TQM is about addressing all aspects of dimensions of quality. If there is a goodproduct in bad packaging it is not going to give the desired returns to the

organization. A good car with a bad bumper will tarnish the image of the company.

An ill tempered receptionist can turn away potential customers from a nice 5-starhotel. So people and process should match the quality of the product being offered

by the organization.

A satisfied employee will always bring a satisfied customer, so internal customers are

also important. All hygiene factors and motivation factors should be maintained tosatisfy the needs of the internal customer.

Retaining internal customer is important for better knowledge management and

continuity of the process. Retaining external customer is important to get repeatsales. It is always easier to get repeat sales from existing customers than to get

sales from a new customer.

Everybody, right from the shop-floor employee to the top management, should have

total commitment to the predetermined quality goals.

HISTORY

Effect of Industrialisation on workmanship

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 for Quality Control formed later changed to American

Society for Quality

1960s Japanese management started quality control circles.

Think about quality concept which a road side trinket seller may be having.

Think about the quality concept your neighbourhood barber may be having.

Think about the quality concept which the nearby Dominos may be having.

One can get every bit of history of quality in a wonderful country like India.


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Barriers to TQM Implementation

1. Lack of Management Commitment

2. Inability to Change Culture

3. Improper Planning

4. Lack of Continuous Training

5. Incompatible Organizational Structure

6. Isolated Individuals and departments

7. Ineffective Measurement Techniques

8. Lack of Access to Data

9. Inadequate Attention to External & Internal Customers

10. Inadequate Empowerment and Teamwork

11. Failure to Continually Improve

If the top management takes quality as a form of window dressing then theorganization is not going to attain the desired goal. Companies which maintain

quality only during the time of inspection by ISO personnel cant achieve qualitygoals.

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. The way Jack

Welch managed change in GE is a very good example of people involvement inchange management.

As quality is a continuous and never ending process, so is the training. Even thewhole lifetime is not enough for complete learning. So training should go on forever.

This is important because customers preferences keep on changing. SONY can be agood example of an organization keeping pace with customers preference change.

SONY tape-recorder made the gramophone an obsolete product. Later on WALKMANchanged the way for portable music. At present even WALKMAN is an obsolete

product and SONY sells MP3 players by the same brand name.

People should not live in silos. They should come out to facilitate better interactionsto share knowledge.

People should be empowered to sort out issues. This will reduce the throughput time.

Obviously accountability is important along with empowerment. If a frontlinepersonnel is empowered to sort out customers problems then it will save precious

time of the top management.


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SUMMARY:

Quality is having different meanings for different people. In spite of this any

organization aiming for sustainable competitive advantage needs to assesscustomers needs to fix a quality objective. Immaculate planning is required to attain

the pre decided quality goals. Proper monitoring and peoples involvement canultimately enable an organization to achieve the desired results. In the long run the

good quality always wins the customers heart.


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