Finish Line & Beyond
Definitions & Dimensions
Planning
Quality Costs
TQM
History
Barriers to TQM
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 fully represent customer
expectations; Crosby treats this as a
separate problem.
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This chapter contains introduction of quality and
Total Quality Management (TQM).
There are following topics :
Definitions & Dimensions
Planning
Quality Costs
TQM
History
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.
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.
 Finish Line & Beyond

Definitions Following definitions talk about consumer’s

Joseph M. Juran: "Fitness for use." perspective. And a consumer’s top priority is always
Fitness is defined by the customer. to get some functionality from the product.
Noriaki Kano and others, present a
two-dimensional model of quality:
"must-be quality" and "attractive
quality."

Definitions Taguchi talks about lack of variations against set

Robert Pirsig: "The result of care."
Genichi Taguchi, with two
definitions:
a. "Uniformity around a target
value."
parameters. As attaining 100% perfection is
impossible in real life situations, so Taguchi talks
about 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.

b. "The loss a product imposes on

society after it is shipped."

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Definitions The definition by American Society talks about

American Society for Quality: subjectivity of quality. For a rural person traveling in
a rickety bus can mean comfort, while for the jet-set
"A subjective term for which each people an AC taxi will give the bare minimum
person has his or her own definition. comfort.

In technical usage, quality can have

two 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."

Definitions In totality quality means conformance to pre-set

Quality of a product or service refers criteria as well as ability to satisfy the end user. If a
to the perception of the degree to pen is unable to write then the diamond studded on it
which the product or service meets is of no use.
the customer's expectations.

Quality has no specific meaning

unless related to a specific function
and/or object. Quality is a perceptual,
conditional and somewhat subjective
attribute.

Dimensions of Quality The top most dimension of quality is the functionality

of a product. For example a mixer grinder should be
Performance: Basic Functional able to grind the hard turmeric, otherwise three speed
Aspect gear box is of no use to the end user.

Features: Can’t give core benefit
Aesthetics: Look, finish, etc.
Reliability: Lineage
Durability: Optimum life span
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 will
help the customer in buying decision.

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Dimensions of Quality
Serviceability: Ease of getting
serviced
Safety: Air Bags
User-friendliness: Windows Vs Linux
Customizability: Lens attachment
Nikon
Environmental-friendliness
Quality Planning
1. Set quality objectives and targets
2. Take into account customer’s
wants
3. Plan about marketability of the
products.
Quality Planning
Carry out pre-production
process capability or quality
deliverability studies.
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Finish Line & Beyond
Take the example of Maruti service centre advt which
talks about the possibility of finding one in the
remotest corner of India.
The product should be safe and can be handled with
kid’s 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.
Planning quality starts with setting quantifiable and
measurable targets. While doing this the organization
needs to keep customer’s wants in mind. Once the
quality objective is decided it is important to think
about the market feasibility of the product.
TATA Nano can prove if Ratan Tata was wrong or
right when he planned for the people’s 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.
Before planning for Chandrayan ISRO must have
thought about its capabilities to build and deliver
such a spacecraft.
 Finish Line & Beyond

Quality Planning A ranking chart should be developed to finalize the

Establish the relative importance
of the quality characteristics and
Specifications.
Communicate to the production
line people and vendors supplying
the raw materials.
most 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 Plan to monitor the progress of quality programme is

Establish statistical control important. This can be done by devising ways and
techniques, charts and means to monitor progress and finding deviations.
sampling plans.

Establish training
programmes.

Costs of Quality: The ultimate goal of an organization is to earn profits.

Maintaining the quality at least So keeping the cost at minimum possible level is
possible cost. important. Otherwise the higher input cost may not
permit the ultimate aim of the organization.

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 Finish Line & Beyond

Cost of quality involves following aspects:

1. Cost of Appraisal
2. Cost of Prevention
3. Cost of Failure

Costs of Quality: This is about assessing the current situation. This will
Costs of Appraisal: involve manhour and resources.
Inspection,
Testing,
Monitoring
Control

Costs of Prevention: Prevention requires manhour as personnel need to be

deployed to inspect the raw material and finished
Prevent bad quality output. goods.
Plan Precautions
Prevent Bad Raw Material
Prevent Wrong Sampling

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 Finish Line & Beyond

Costs of failure: Cost of failure needs to be planned out in advance as

no matter how much precautions are taken failures
Rejects, rework, spoilage, are part of life.

Customer complaints

Product service

Analysis of Costs of Quality The comparative analysis of cost of quality can give
Category to category comparison: an idea about where to focus more to improve further.
Comparing the relative amounts spent
on each of the above mentioned cost
categories.
Time to time comparison:
Comparing one quarter’s operations
with the previous quarter’s
operations.

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 Quality Management
Addressing all aspects of dimensions
of quality
Addressing the quality aspect in
everything – products, services,
processes, people, resources and
interactions.
Satisfying all customers – internal as
well as external
Total Quality Management
Addressing the total organizational
issue of retaining customers and
Improving profits, as well as
generating new business for the
future.
Involving everyone in the
organization in the attainment of the
said
objective.
Demanding total commitment from
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Finish Line & Beyond
Total means 100%, so TQM is about managing all
aspects 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.
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 will
tarnish the image of the company.
An ill tempered receptionist can turn away potential
customers from a nice 5-star hotel.
A satisfied employee will always bring a satisfied
customer, so internal customers are also important.
Retaining internal customer is important for better
knowledge management and continuity of the
process. Retaining external customer is important to
get repeat sales.
Everybody, right from the shopfloor employee to the
top management, should have total commitment to
the predetermined quality goals.
 Finish Line & Beyond

all in the organization towards the

achievement of the objective.

HISTORY Think about quality concept which a road side trinket

• 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.
seller may be having.
Think about the quality concept your neighbourhood
barber may be having.
Think about the quality concept which the nearby
Domino’s may be having.
One can get every bit of history in a wonderful
country like India.

• 1946 American Society for

Quality Control formed later
changed to American Society
for Quality

• 1960s Japanese management

started quality control circles.

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 Finish Line & Beyond

Barriers to TQM Implementation If the top management takes quality as a form of

window dressing then the organization is not going to
Lack of Management Commitment attain the desired goal.

Inability to Change Culture It is difficult but important to change the culture of

the organization. Paradigm change is needed to force
Improper Planning people to strive for the new quality goal.

Lack of Continuous Training As quality is a continuous and never ending process,

so is the training.

Barriers to TQM Implementation
Incompatible Organizational
Structure
Isolated Individuals and departments
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. This
will reduce the throughput time. Obviously
accountability is important along with empowerment.

Ineffective Measurement Techniques

Lack of Access to Data

Inadequate Attention to External &

Internal
Customers

Inadequate Empowerment and

Teamwork

Failure to Continually Improve

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