Total Quality Management

R. KESAVANAsst. Professor,

Dept. of Production Technology,MIT, Anna University,

Chennai - 600 044.

C. ELANCHEZHIANAsst. Professor,

Dept. of Mechanical Engineering,Sri Sai Ram Engineering College,

Chennai - 600 044.

B. VIJAYA RAMNATHSenior Faculty,

Dept. of Mechanical Engineering,Sri Sai Ram Engineering College,

Chennai - 600 044.

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NEW DELHI • BANGALORE • MUMBAI

Published by

I.K. International Publishing House Pvt. Ltd.S-25, Green Park ExtensionUphaar Cinema MarketNew Delhi–110 016 (India)E-mail: info@ikinternational.comWebsite: www.ikbooks.com

ISBN: 978-81-89866-86-0

© 2008 I.K. International Publishing House Pvt. Ltd.

Reprint 2012

All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or any means: electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission from the publisher.

Published by Krishan Makhijani for I.K. International Publishing House Pvt. Ltd., S-25, Green Park Extension, Uphaar Cinema Market, New Delhi–110 016 and Printed by Rekha Printers Pvt. Ltd., Okhla Industrial Area, Phase II, New Delhi–110 020.

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This edition of “TOTAL QUALITY MANAGEMENT” is based on the latestsyllabus for B.E/B.Tech of Anna University and other Universities. This is alsoa valuable asset for Industrial Engineers and Beginners in the area of QualityManagement.

This book provides all necessary information about Quality, Leadership,TQM Principles, SPC, TQM Tools and Quality Systems.

The subject matter has been presented in a simple and systematic manner.To familiarise the student about expected type of questions in the examinations,review questions have been provided at the end of each chapter. Also, importantshort questions with answers are provided for the benefit of the students.

Suggestions for further improvement of this book are most welcome andwould be incorporated in the next edition.

Dr. R. KESAVANC. Elanchezhian

B. Vijaya Ramnath

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Unit - 1 Quality 11.0 Introduction 11.1 Evolution of Quality Management 11.2 Definitions of Quality 41.3 Dimensions of Quality 4

1.3.1 Dimensions of Service Quality 51.4 Quality Planning 7

1.4.1 Definition 71.4.2 Activities of Quality Planning 71.4.3 Opportunities for Quality Improvement 8

1.5 The Cost of Quality 91.6 Classification of Quality Costs 10

1.6.1 Prevention Costs 101.6.2 Appraisal Costs 101.6.3 Internal Failure Cost 111.6.4 External Failure Cost 11

1.7 Establishing Cost of Quality Reporting Systems 111.8 Quality Costs in Service Organisations 131.9 Basic Concepts of TQM 14

1.9.1 Four Pillars of TQM 151.9.2 TQM Models 16

1.9.2.1 TQM Pyramid 161.9.2.2 Integrated Model of TQM 171.9.2.3 TQM: The Building Blocks of TQM 171.9.2.4 3-Dimensional Quality Model 191.9.2.5 TQM Wheel 201.9.2.6 Overview of TQM 20

1.10 Historical Preview 211.11 Evolution of TQM (Quality Movement from Inspection to TQM) 231.12 Total Quality Control 23

1.12.1 What is Total Quality Control? 231.12.2 Evolution of TQC 241.12.3 Steps in Development of Quality Field Period 24

1.13 Principles of TQC 241.14 Scope of Total Quality Control (TQC) 25

1.15 Introduction—Total Quality Management 261.15.1 Definition of TQM 26

1.16 Scope of Total Quality Management 291.17 Features of TQM 291.18 Elements of TQM 301.19 Principles of TQM 31

1.19.1 Seven Underlying Principles of TQM 331.19.2 Necessity for Total Quality Management 34

1.20 Major Elements of Total Quality Management Concept 341.20.1 Major Axioms of TQM 35

1.21 Leadership Role in TQM 371.21.1 Identify and Encourage Employee Potential 371.21.2 Accept the Responsibility 371.21.3 To Play a Role Model 371.21.4 Remove Roadblocks 37

1.22 Leadership Commitment 381.22.1 Role of the Chief Executive 381.22.2 Role of Top Management 381.22.3 Role of Middle Management 391.22.4 Leadership Accountability 39

1.23 Establishing Strategic Quality Management (SQM):The Quality Council 40

1.24 Strategic Quality Management (SQM) 411.24.1 The Concept of Strategic Quality Planning 411.24.2 Subject Matter of Quality Goals 421.24.3 Identify the Needed Actions and Resources 431.24.4 Leadership and Strategic Planning 441.24.5 Foundation for Strategic Planning 451.24.6 Seven Steps to Strategic Planning 451.24.7 The Role of Quality in Strategic Planning 461.24.8 Leading Practices for Strategic Quality Planning 471.24.9 Strategy Development 481.24.10 Strategy Deployment 481.24.11 The Purpose of Strategic Quality Planning 49

1.25 Quality Statements 491.25.1 Vision Statement 491.25.2 Mission Statement 501.25.3 Quality Policy 50

1.26 W. Edwards Deming Philosophy 511.26.1 Strengths and Weaknesses of Deming Philosophy 53

1.27 Claus Moller’s Theory 531.28 Common Message from Gurus 541.29 Benefits of TQM 541.30 Barriers to TQM 54

viii CONTENTS

1.31 Economic Justification of TQM 55Two Marks Questions and Answers 56Review Questions 58

Unit - 2 TQM Principles 592.0 Introduction—Principles of TQM 592.1 Introduction: Customer Satisfaction 602.2 Customer Satisfaction Index 60

2.2.1 Customer and Other Departments 602.2.2 Customer Service 602.2.3 Customer Complaints 602.2.4 Quality Measurement by Customer 612.2.5 Customer Attitude 622.2.6 Who is Customer? 622.2.7 Identification of Customers 622.2.8 Customer Satisfaction: How can I Measure it?

Yoshio Kondo 622.3 Types of Customer 63

2.3.1 External Customer 632.3.2 Internal Customer 642.3.3 Delighted Customer 64

2.4 American Customer Satisfaction Index (ACSI) 642.5 Customer Perception of Quality 65

2.5.1 Performance 652.5.2 Features 652.5.3 Service 662.5.4 Warranty 662.5.5 Price 662.5.6 Reputation 66

2.6 Service Quality 672.6.1 Service Quality 67

2.7 Customer Retention 682.7.1 Focus Areas of Customer Retention 682.7.2 Customer Retention and Profitability 69

2.8 Employee Involvement 692.9 Motivation 71

2.9.1 Applying Motivation Theories to TQ 712.9.2 Theories of Motivation 71

2.10 Empowerment 722.10.1 Phases of Employee Involvement 732.10.2 Two Steps to Empowerment 73

2.11 Teamwork and Team Building 742.11.1 Types of Teams 752.11.2 Characteristics of Successful Teams 75

CONTENTS ix

2.11.3 Developing Successful Teams 762.12 Recognition and Reward 772.13 Performance Appraisal 772.14 Continuous Process Improvement Strategies 792.15 Juran Trilogy 79

2.15.1 Quality Planning 792.15.2 Quality Control 792.15.3 Quality Improvement 792.15.4 Quality Planning 80

2.16 Determinants of Quality 812.17 PDSA 81

2.17.1 PDSA Cycle 822.18 5-S System 83

2.18.1 Introduction: 5-S System 832.18.2 The 5-S in Detail 832.18.3 What is Organisation (Seiri)? 832.18.4 What is Neatness (Seiton)? 832.18.5 What is Cleaning (Seiso)? 852.18.6 What is Standardisation (Seiketsu)? 862.18.7 What is Discipline (Shitsuke)? 872.18.8 Usefulness of 5-S Practice 87

2.19 Kaizen 872.19.1 Kaizen Foundations 882.19.2 Kaizen Tools 882.19.3 Kaizen Requirements 89

2.20 Supplier Selection and Development 892.21 Supplier Partnership 89

2.21.1 Principles of Customer/Supplier Relations 902.21.2 Types of Sourcing 92

2.22 Supplier Selection 932.22.1 Supplier Certification 932.22.2 Eight Criteria for Certification 932.22.3 Supplier Rating 94

2.23 The General Problems of Vendor Quality 942.23.1 A Framework for Vendor Quality Survey 962.23.2 Some Successful Situations Observed 1002.23.3 Vendor Certification Programme 1012.23.4 For Achieving Self-inspection, the Following

Steps are Taken 1022.23.5 A Model for Vendor Development 106

2.24 Performance Measures 1082.24.1 Key Quality Measurements a Manufacturing Industry 1092.24.2 Developing Effective Performance Measurements

and Indicators 110

x CONTENTS

2.24.3 Examples of Attributes and Variable Measurements 111Case Study 112Two Marks Questions and Answers 113Review Questions 116

Unit - 3 Statistical Process Control (SPC) 1183.0 Introduction 1183.1 Need for SPC 1183.2 SPC Implementation 1193.3 Limitations of SPC 1193.4 Seven Quality Control Tools 119

3.4.1 Process Flow chart 1203.4.2 Check Sheet (Tally Chart) 1203.4.3 Histogram 122

3.4.3.1 Histogram Shapes 1223.4.3.2 Steps in Constructing a Histogram 123

3.4.4 Pareto Analysis 1243.4.5 Cause and Effect Analysis (Fish Bone Diagram) 1253.4.6 Scatter Diagram 1273.4.7 Control Charts 127

3.5 Statistical Fundamentals 1283.5.1 SPC Implementation and Benefits 131

3.6 Statistical Process Control—Concept 1323.6.1 SPC Refers to a Control of a Process

During Manufacturing 1323.7 Acceptance Sampling 1333.8 Benefits of SPC 1333.9 Data Types and Applications 1343.10 Frequency Distribution 1363.11 Introduction to Control Charts 141

3.11.1 Variation 1413.11.2 Run Chart 1423.11.3 Control Chart Example 143

3.11.3.1 Constructing a Control Chart 1453.11.3.2 Uses of Control Charts 145

3.11.4 Control Charts for Variables 1453.11.4.1 Quality Characteristic 1483.11.4.2 Subgroup Size and Method 148

3.12 Control Charts for Attributes 1493.12.1 Objectives of the Chart 1503.12.2 Uses of the Chart (P Chart) 1513.12.3 Subgroup Size 1513.12.4 Data Collection 1513.12.5 Trial Central Lines and Control Limits 151

CONTENTS xi

3.12.6 Scatter Diagrams 1533.13 Process Capability 156

3.13.1 Process Capability Studies 1573.13.2 Reasons for Conducting a Process Capability Study 1573.13.3 Six Steps in a Process Capability Study 1573.13.4 Process Capability Ratio 1583.13.5 Process Capability Indices 1583.13.6 Upper and Lower Capability Indices 1583.13.7 The Cpk Index 159

3.14 Six Sigma Quality 1603.14.1 How Six Sigma Works? 1623.14.2 Six Sigma Implementation 1643.14.3 Six Sigma Advantages 166

3.15 New Seven Management Tools 1663.15.1 Affinity Diagram 1663.15.2 Inter-relationship Diagram 1673.15.3 Tree Diagram 167

3.15.3.1 Construction Steps 1673.15.4 Matrix Diagrams 1693.15.5 Process Decision Program Charts (PDPC) 170

3.15.5.1 Process Decision Program Chart (PDPC) 1703.15.6 Arrow Diagram 1723.15.7 Prioritisation Matrices 172

Solved Problems 173Two Marks Questions and Answers 192Review Questions 194

Unit - 4 TQM Tools 1964.0 Introduction 1964.1 Benchmarking 1974.2 Objectives of Benchmarking 1984.3 Benchmarking Cycle 198

4.3.1 Benchmarking Cycle 1994.4 Benchmarking Guide 1994.5 Reasons to Benchmarking 2004.6 Need for Benchmarking 2004.7 Benchmarking Metrics 2004.8 Benchmarking Steps 201

4.8.1 Phases of Benchmarking Process 2014.9 Five Stages of Benchmarking 2024.10 Types of Benchmarking 2034.11 Benchmarking, Leadership and Management Process 2044.12 The Role of a Benchmarking Centre 2054.13 Training for Benchmarking 205

xii CONTENTS

4.14 Advantages of Benchmarking 2054.15 Limitations of Benchmarking 2054.16 Benchmarking Pitfalls 2064.17 Quality Function Deployment (QFD) 206

4.17.1 Quality Function Deployment Process 2074.17.2 Primary Parts of the QFD Matrix 208

4.17.2.1 QFD Starts with Customers 2084.17.2.2 The Technical/Design Portion 209

4.17.3 Benefits Attributed to QFD 2104.18 Houses of Quality 211

4.18.1 Four House of Quality 2134.18.2 Procedure of Constructing QFD 2144.18.3 Planning Documents in QFD 215

4.19 Genichi Taguchi and TQM 2164.19.1 Taguchi’s Quality Loss Function 2174.19.2 Taguchi’s Seven Points 2194.19.3 Strength and Weaknesses of Taguchi’s Ideas 219

4.20 Total Productive Maintenance (TPM) 2204.20.1 Introduction 2204.20.2 The Plan 2204.20.3 Learning the New Philosophy 2214.20.4 Promoting the Philosophy 2214.20.5 Training 2224.20.6 Improvement Needs 2224.20.7 Six Major Loss Areas Tracked for TPM 2234.20.8 Developing Plans 2244.20.9 Autonomous Work Groups 224

4.21 FMEA (Failure Mode Effect Analysis) 2254.21.1 Introduction 2254.21.2 Types of FMEA 2254.21.3 Reliability 2264.21.4 Reliability Requirements 2264.21.5 Failure Rate 2274.21.6 Intent of FMEA 2274.21.7 FMEA Team 2274.21.8 FMEA Documentation 2284.21.9 Block Diagram 2284.21.10 Other Documentation 229

4.22 Stages of FMEA 2294.22.1 The FMEA Document 2304.22.2 FMEA Number 2304.22.3 Design Responsibility 2304.22.4 Core Team 2334.22.5 Potential Failure Mode 233

CONTENTS xiii

4.22.6 Potential Effect(s) of Failure 2334.22.7 Classification (CLASS) 2354.22.8 Recommended Actions 2384.22.9 Resulting RPN 238

4.23 The Process FMEA Document 239Case Study for QFD 240Case Study on FMEA 249Solved Problems 251Two Marks Questions and Answers 253Review Questions 257

Unit - 5 Quality System 2585.0 Introduction—Quality System 2585.1 Need for ISO 9000 and Other Quality Systems 2585.2 What is ISO 9000? 2595.3 ISO 9000 and TQM 2605.4 Objectives of ISO 9000 2605.5 ISO 9000 Series 2605.6 Structure of ISO 9000 Standards 2615.7 Elements of ISO 9000 2625.8 Documentation 266

5.8.1 Document Control 2675.8.2 Benefits of Documentation 267

5.9 Quality Audit 2675.9.1 Definition of Quality Audit 2685.9.2 Types of Quality Audit 2685.9.3 2nd Party Audit 2685.9.4 3rd Party Audit 269

5.10 Procedure of Conducting Quality Audit 2695.11 Benefits of ISO 9000 Certification 2735.12 Other Quality Systems 274

5.12.1 QS 9000 2745.12.2 Change Management 2745.12.3 Success Through Change 2755.12.4 Cultural Change 2765.12.5 Total Quality Culture 2765.12.6 How Organisational Culture is Changed? 2775.12.7 Make the New Culture Permanent 2775.12.8 Work Change 2785.12.9 Facing Change, Facing Progress 2785.12.10 The Six Step Change Process 279

5.13 Concepts of ISO 14001 2805.13.1 Requirements of ISO 14001 281

5.13.1.1 General Requirements 281

xiv CONTENTS

5.13.2 Environmental Aspects 2825.13.3 Legal and Other Requirements 2825.13.4 Objectives and Targets 2825.13.5 Environmental Management Program(s) 2835.13.6 Structure and Responsibility 2835.13.7 Training, Awareness, and Competency 2835.13.8 Communication 2845.13.9 EMS Documentation 2845.13.10 Document Control 2845.13.11 Operational Control 2845.13.12 Emergency Prepareness and Response 2845.13.13 Monitoring and Measuring 285

5.14 Non-conformance and Corrective and Preventive Action 2855.14.1 Records 2855.14.2 EMS Audit 2855.14.3 Management Review 286Case Study 286Two Marks Questions and Answers 287Review Questions 289Appendix 291University Question Paper 307Index 315

CONTENTS xv

Total Quality Management

Publisher : IK International ISBN : 9788189866860Author : R. Kesavan, C.Elanchezhian, B. VijayaRamnath

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