Embed Size (px)
DESCRIPTION
TQM concept and quality cost
Citation preview
TOTAL QUALITY MANAGEMENT
O PRESENTED TO:-
Dr. MINNI SINGH
O PRESENTED BY :-
SUDHA
CHIB
M.Sc (h)BT
2
130181107
QUALITY
O Quality is conformance to requirements or
standards or specifications
or
O According to ISO defination given in
1986:-
“Quality is the toatality of features and
characterstics of a product or service that
bears in its ability to satisfy stated or
implied needs”
QUALITY
PRODUCT QUALITY
SERVICE QUALITY
CUSTOMER NEEDS
STATED NEEDS
IMPLIED NEEDS
QUALITY CHARACTERSTICS
O 8 dimentions of product quality
management can be used at a strategic
level to analyze quality characteristics
O The concept was defined by David Garvin
in 1986
CLASSIFICATION OF QUALITY
QUALITY OF DESIGN
QUALITY OF CONFORMANCE
O QUALITY OF DESIGN:- the quality which the
producer is intended to offer to the customer
it is usually indicated by completeness of
drawings catalogues etc
O QUALITY OF CONFORMANCE:- it’s the level of
quality of product actually produced and delivered
as per the specifications or design
TOTAL QUALITY MANAGEMENT
O TQM can be defined as process of achieving
sustaining quality improvement it is
motivational techniques invoving :-
O Commitment
O Communication
O Culture change
O Leadership
O involvement
ACHIEVED BY
QUALITY ASSURANCE
QUALITY CONTROL
QUALITY MANAGEMENT SYSTEM
TOTAL QUALITY MANAGEMENT
O QUALITY ASSURANCE:- It is strategic
management function concerned with
establishment of policies , standards and
systems for the maintanance of quality
O QUALITY CONTROL:- Concerned with the
implementation of quality assurance
programmes
PRINCIPLES OF TQM
O Management commitment:-
O Employee enpowerment
O Continuous improvement
O Customer focus
COST AND ECONOMY OF QUALITY
O According to ISO 8402 quality cost is:-
The expenditure incurred in defect prevention and appraisal activities plus the losses due to internal external failure
or
Simply cost of quality (COQ) equals to the cost of conformance (COC) plus the cost of non conformance (CONC)
COQ = COC + CONC
BENEFITS OF MEASURING QUALITY COST
O Increased opportunity to make objective buisness decisions based on quantitative data
O The identification and prioritisation of areas and aspects of the buisness requiring quality improvement and cost reduction
O To compare the performance of departments and processes
O An increase in the focus of management on quality and quality improvement as an integral part of management responsibilty
COSTS
FAILURE COST
INTERNAL FAILURE
EXTERNAL FAILURE
APPRAISAL COST
PREVENTION COST
PREVENTION COST
O Cost associated with actions taken to investigate , prevent or reduce defects
O It include:-
O Implementing a documental quality system
O Providing management procedure
O Providing work instructions
O Calibrating intruments
O Staff training
O Taking corrective actions
APPRAISAL COSTS
O Cost associated with assessing the levels
of quality achieved
O It includes :-
O Cost of confirming that the raw material,
process, product are in compliance with
specification
O Corrective action
O Indirect costs
FAILURE COST
INTERNAL FAILURE
COST
EXTERNAL FAILURE
COST
INTERNAL FAILURE COST
O Cost arising within the manufacturing
organisation
O It include:-
O Downgraded product costs
O Reworked product costs
O Scrapped product costs
O Associated costs
EXTERNAL FAILURE COST
O cost arising outside the manufacturing
organization
O It includes:-
O Rejection costs
O Replacement costs
O Customer / consumer service costs
O Liability costs
REFERENCES
O Total quality management by Dr. K.C Arora
O Quality management systems for the food industry
O http://www.isixsigma.com/methodology/total-quality-management-tqm/introduction-and-implementation-total-quality-management-tqm/
O http://totalqualitymanagement.wordpress.com/2008/09/12/cost-of-quality/
O http://cc.sjtu.edu.cn/G2S/eWebEditor/uploadfile/20130427091849944.pdf
