Conformance to requirements or specifications – Crosby(1979)

Quality is fitness for use – Juran(1974) Quality of Product or Service is the fitness

of that product or service for meeting or exceeding its intended use as required by the Customer

Totality of features and characteristics of a product or service that can bear on its ability to satisfy stated or implied needs – ISO 9000

Hence, Quality is Customer Centric.NOV 2011 KRR TQM/SESSION2

Structural/ Abstract/Sensory Physical characteristics Characteristicseg., Length,Weight,Strength eg., taste,smell, Viscosity,etc. fragrance,beauty,

etc.Quality = Perceived Value /Cost

NOV 2011 KRR TQM/SESSION2

Old Quality is Technical About Products Led by experts For Inspectors High grade About Control About

Specifications

New Quality is Strategic About organisations Led by Management For everyone Appropriate grade About Improvement About Customer

Satisfaction

NOV 2011 KRR TQM/SESSION2

Shop floor activity Production engineer Inspection Production department Quality Department SQC Engineering domain HR domain Change

Mgt Top Management initiative. 3rd party

QANOV 2011 KRR TQM/SESSION2

Competition Changing Customer Changing Product Mix Product Complexity Higher levels of Customer expectations Consumerism and emergence of

Quality Assurance

NOV 2011 KRR TQM/SESSION2

PRODUCT FEATURES(increases Perceived

Value) Performance Reliability Durability Ease of use Serviceability Esthetics Availability of

options and expandability

Reputation

FREEDOM FROM DEFECIENCY

(reduces Cost) Product free

from defects and errors at delivery, during use,and during servicing

Sales, billing and other business processes free of errors

NOV 2011 KRR TQM/SESSION2

Service features (increases Perceived Value) Accuracy Timeliness Completeness Friendliness and

Courtesy Anticipating

customer needs Knowledge of

server Esthetics Reputation

Freedom from Deficiencies (Reduces Cost)

Service free of errors during original and future service transactions

Sales, billing and other business processes free of errors

NOV 2011 KRR TQM/SESSION2

A Defect is a departure of a quality characteristic from its intended level or state that occurs with a severity sufficient to cause an

associated product or service not to satisfy intended normal or reasonably foreseeable usage requirements- ANSI(American National Standards Institute)

SUITABILITY DURABILITY DEPENDABILITY, RELIABILITY SAFE WORKABILITY AFFORDABILITY APPLICABILITY

NOV 2011 KRR TQM/SESSION2

ROI

Variables- Characteristics that are measurable and are expressed on a numerical scale. Example: Diameter of a bearing expressed in ‘mm’., density of liquid in gm/cm3

Attributes-Characteristics that is classified as either conforming or nonconforming to a stipulated specification(it can’t be measured on a numerical scale)Example: Smell of a cologne

NOV 2011 KRR TQM/SESSION2

Total quality management (TQM) is a management philosophy and strategy designed to involve all members of an organization in the process and responsibility for producing quality products and services.

TQM is not a Jargon or Slogan. It is an Umbrella of various quality ‘initiatives’ . It is a philosophy that bonds together the use

of quality improving effects It is an Organizational effort towards ‘Customer

Delight’

NOV 2011 KRR TQM/SESSION2

Quality is never an accident, it is always the result of untiring and intelligent effort.

Quality is like a prayer to God, which never comes out without hard work and devotion

Quality is everybody’s business Quality begins with the cleanliness of the

workplace Take care of Quality, Quantity will take care of

itself Make it right for first time and every time Quality is achieved through teamwork Document is dependable but not the memory Quality begins and ends with education Quality is the attribute that a customer uses to

evaluate a product or service

NOV 2011 KRR TQM/SESSION2

Total quality management is an approach to doing business that attempts to maximize the competitiveness of an organization through the continual improvement of the quality of its products, services, people, processes and environments.

NOV 2011 KRR TQM/SESSION2

TQM consists of continuous improvement activities involving everyone in the organization – Managers and Workers – in a totally integrated effort toward improving performance at every level.

NOV 2011 KRR TQM/SESSION2

Customer External

Customers:Consumer,Intermediate processors, Merchants,Govt. regulatory bodies etc.

Internal Customers: Co. divisions providing components for assembly,other departments that are effected(eg, purchasing which receives specification from engineering)

NOV 2011 KRR TQM/SESSION2

An American automobile company and a Japanese auto company decided to have a competitive boat race on the Detroit River. Both teams practiced hard and long to reach their peak performance. On the big day, they were as ready as they could be.

The Japanese team won by a mile.

NOV 2011 KRR TQM/SESSION2

The American team became discouraged by the loss and their morale sagged. Corporate management decided that the reason for the crushing defeat had to be found. A Continuous Measurable Improvement Team of "Executives" was set up to investigate the problem and to recommend appropriate corrective action. The team hired a consultant.

Their conclusion: The problem was that the Japanese team had 8 people rowing and 1 person steering, whereas the American team had 1 person rowing and 8 people steering. The American Corporate Steering Committee immediately hired a consulting firm to do a study on the management structure.

NOV 2011 KRR TQM/SESSION2

After some time and billions of dollars, the consulting firm concluded that "too many people were steering and not enough rowing." To prevent losing to the Japanese again next year, the management structure was changed to "4 Steering Managers, 3 Area Steering Managers, and 1 Staff Steering Manager" and a new performance system for the person rowing the boat to give more incentive to work harder and become a six sigma performer. "We must give him empowerment and enrichment." That ought to do it.

The next year the Japanese team won by two miles!!

The American Corporation laid off the rower for poor performance, sold all of the paddles, cancelled all capital investments for new equipment, halted development of a new canoe, awarded high performance awards to the consulting firm, and distributed the money saved as bonuses to the senior executives.

NOV 2011 KRR TQM/SESSION2

1 Kg (1000 gm) Pack of Nandini Ghee = Rs. 400/-To please customer and improper quality controlEach pack contains 20 gm extra.1 Mini Nandini van carries 25 boxes of ghee, with each box= 100 1kg packs. Capacity of van is 26 Boxes.Nandini distributes ghee in Udupi district with 15 vans going in different areas.Loading & Unloading charges = Rs. 30/BoxMaterial charges(container) = Rs. 8/KgCalculate additional cost due to higher grade.

NOV 2011 KRR TQM/SESSION2