TQM Notes

Total Quality Management
Notes
UNIT I INTRODUCTION 9
Introduction - Need for quality - Evolution of quality - Definition of quality - Dimensions of
manufacturing and service quality - Basic concepts of TQM - Definition of TQM TQM
Framework - Contributions of Deming, Juran and Crosby Barriers to TQM.
Introduction
The definition of quality depends on the role of the people defining it. Most
consumers have a difficult time defining quality, but they know it when they see it.
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For example, although you probably have an opinion as to which manufacturer of
athletic shoes provides the highest quality, it would probably be difficult for you to
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define your quality standard in precise terms. Also, your friends may have different
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opinions regarding which athletic shoes are of highest quality. The difficulty in
defining quality exists regardless of product, and this is true for both manufacturing
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and service organizations. Think about how difficult it may be to define quality
for products such as airline services, child day-care facilities, college classes, or even
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textbooks.
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Today, there is no single universal definition of quality. Some people view quality as
performance to standards.Others view it as meeting the customers needs or satisfying
the customer. Lets look at some of the more common definitions of quality.
Need for Quality Management :
By definition of ISO (Int'l Org. for Standardization) - TQM is a mgmt approach for an org.
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which is centered on quality and is based on the participation of all members to aim at long-term
success thru customer satisfaction (main) and also to its members and the society in whole.
TQM in Large-scale industries:
- Reduction in wastage: TQM ensures things are done rite the 1st time, so this reduces wastage
and defects.
- Quality Assurance: TQM guarantees that all the products and even operations in the org. are of
a certain quality standard. This promotes trust to the consumers and also maintains a healthy
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environment for employees.
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- Customer-based: TQM focuses on the needs of the customers and can be used effectively, o
make changes to the existing product design to meet such needs.
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Failure Analysis: TQM is a statistical tool also. Hence provides a learned person with the faults
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and failures in various process. This in turn can be used to make corrective progress.
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Definition of quality
Today, there is no single universal definition of quality. Some people view quality as
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performance to standards.Others view it as meeting the customers needs or satisfying

the customer. Lets look at some of the more common definitions of quality.
Conformance to specifications measures how well the product or servic meets the targets and
tolerances determined by its designers. For example, the dimensions of a machine part may be
specified by its design engineers as 3.05 inches. This would mean that the target dimension is 3
inches but the dimensions can vary between 2.95 and 3.05 inches. Similarly, the wait for hotel
room service may be specified as 20 minutes, but there may be an acceptable delay of an
additional 10 minutes. Also, consider the amount of light delivered by a 60 watt light bulb. If the
bulb delivers 50 watts it does not conform to specifications. As these examples illustrate,
conformance to specification is directly measurable, though it may not be directly related to the
consumers idea of quality.
Fitness for use focuses on how well the product performs its intended function or use. For
example, a Mercedes Benz and a Jeep Cherokee both meet a fitness for use definition if one
considers transportation as the intended function. However, if the definition becomes more
specific and assumes that the intended use is for transportation on mountain roads and carrying
fishing gear, the Jeep Cherokee has a greater fitness for use. You can also see that fitness for use
is a user-based definition in that it is intended to meet the needs of a specific user
group.
Value for price paid is a definition of quality that consumers often use for product or service
usefulness. This is the only definition that combines economics with consumer criteria; it
assumes that the definition of quality is price sensitive. For example, suppose that you wish to
sign up for a personal finance seminar and discover that the same class is being taught at two
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different colleges at significantly different tuition rates. If you take the less expensive seminar,
you will feel that you have received greater value for the price.
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Support services provided are often how the quality of a product or service is judged. Quality
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does not apply only to the product or service itself; it also applies to the people, processes, and
organizational environment associated with it. For example, the quality of a university is judged
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not only by the quality of staff and course offerings, but also by the efficiency and accuracy of
processing paperwork
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Psychological criteria is a subjective definition that focuses on the judgmental evaluation of what
constitutes product or service quality. Different factors contribute to the evaluation, such as the
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atmosphere of the environment or the perceived prestige of the product. For example, a hospital
patient may receive average health care, but a very friendly staff may leave the impression of
high quality. Similarly, we commonly associate certain products with excellence because of
their reputation; Rolex watches and Mercedes-Benz automobiles are examples.
Dimensions of Manufacturing and Service quality :

Defining quality in manufacturing organizations is often different from that of services.
Manufacturing organizations produce a tangible product that can be seen, touched, and directly
measured. Examples include cars, CD players, clothes, computers, and food items. Therefore,
quality definitions in manufacturing usually focus on tangible product features. The most
common quality definition in manufacturing is conformance, which is the degree to which a

product characteristic meets preset standards. Other common definitions of quality in
manufacturing include
performancesuch as acceleration of a vehicle;
reliabilitythat the product will function as expected without failure;
featuresthe extras that are included beyond the basic characteristics;
durabilityexpected operational life of the product; and serviceabilityhow readily a product
can be repaired. The relative importance of these definitions is based on the preferences of each
individual customer. It is easy to see how different customers can have different definitions in
mind when they speak of high product quality.
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In contrast to manufacturing, service organizations produce a product that is intangible. Usually,

the complete product cannot be seen or touched. Rather, it is experienced. Examples include
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delivery of health care, experience of staying at a vacation resort, and learning at a university.
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The intangible nature of the product makes defining quality difficult. Also, since a service is
experienced, perceptions can be highly subjective. In addition to tangible factors, quality of
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services is often defined by perceptual factors. These include responsiveness to customer needs,
courtesy and friendliness of staff, promptness in resolving complaints, and atmosphere. Other
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definitions ofquality in services include timethe amount of time a customer has to wait for the
service; and consistencythe degree to which the service is the same each time For these
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reasons, defining quality in services can be especially challenging. Dimensions of quality for
manufacturing versus service organizations are shown in below Table 5-1.
MANUFACTURING ORGANISATION
SERVICE ORGANIZATION
Conformance to specifications
Tangible factors
Performance
Consistency
Reliability
Responsiveness to customer needs
Features
Courtesy/friendliness
Durability
Timeliness/promptness
Serviceability
Atmosphere
Evolution of quality :
Evolution of quality provides high degree of assurance that manufacturer will consistently
produce medical devices that:Are safe
Perform as intended
Comply with customer requirements
Comply with regulatory requirements
Have the appropriate degree of quality
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BASIC CONCEPTS OF TOTAL QUALITY MANAGEMENT :
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The concept of has existed for many years, though its meaning has changed and evolved over
time. In the early twentieth century, quality management meant inspecting products to ensure
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that they met specifications. In the 1940s, during World War II, quality became more statistical
in nature. Statistical sampling techniques were used to evaluate quality, and quality control
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charts were used to monitor the production process. In the 1960s, with the help of so-called
quality gurus, the concept took on a broader meaning. Quality began to be viewed as
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something that encompassed the entire organization, not only the production process. Since all
functions were responsible for product quality and all shared the costs of poor quality, quality
was seen as a concept that affected the entire organization. The meaning of quality for businesses
changed dramatically in the late 1970s. Before then quality was still viewed as something that
needed to be inspected and corrected. However, in the 1970s and 1980s many U.S. industries lost
market share to foreign competition. In the auto industry, manufacturers such as Toyota and
Honda became major players. In the consumer goods market, companies such as Toshiba and
Sony led the way. These foreign competitors were producing lower-priced products with
considerably higher quality. To survive, companies had to make major changes in their quality
programs. Many hired consultants and instituted quality training programs for their employees. A
new concept of quality was emerging. One result is that quality began to have a strategic
meaning. Today, successful companies understand that quality provides a competitive advantage.
They put the customer first and define quality as meeting or exceeding customer expectations.
Since the 1970s, competition based on quality has grown in importance and has generated
tremendous interest, concern, and enthusiasm. Companies in every line of business are focusing
on improving quality in order to be more competitive. In many industries quality excellence has
become a standard for doing business. Companies that do not meet this standard simply will not
survive. As you will see later in the chapter, the importance of quality is demonstrated by
national quality awards and quality certifications that are coveted by businesses.
The term used for todays new concept of quality is total quality management or TQM. Figure 53 presents a timeline of the old and new concepts of quality. You can see that the old concept is
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reactive, designed to correct quality problems after they occur. The new concept is proactive,
designed to build quality into the product and process design. Next, we look at the individuals
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who have shaped our understanding of quality.
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CONTRIBUTIONS BY QUALITY GURUS
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To fully understand the TQM movement, we need to look at the philosophies of notable
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individuals who have shaped the evolution of TQM. Their philosophies and teachings have
contributed to our knowledge and understanding of quality today.
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Walter A. Shewhart Walter A. Shewhart was a statistician at Bell Labs during the 1920s and
1930s. Shewhart studied randomness and recognized that variability existed in all manufacturing
processes. He developed quality control charts that are used to identify whether the variability in
the process is random or due to an assignable cause, such as poor workers or miscalibrated
machinery. He stressed that eliminating variability improves quality. His work created the
foundation for todays statistical process control, and he is often referred to as the grandfather
of quality control.
W. Edwards Deming is often referred to as the father of quality control. He was a statistics
professor at New York University in the 1940s. After World War II he assisted many Japanese
companies in improving quality. The Japanese regarded him so highly that in 1951 they
established the Deming Prize, an annual award given to firms that demonstrate outstanding
quality. It was almost 30 years later that American businesses began adopting Demings
philosophy. A number of elements of Demings philosophy depart from traditional notions
of quality. The first is the role management should play in a companys quality
Dr. Deming's famous 14 Points, originally presented in out of the Crisis, serve as management
guidelines. The points cultivate a fertile soil in which a more efficient workplace, higher profits,
and increased productivity may grow.
Create and communicate to all employees a statement of the aims and purposes of the
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company.
Adapt to the new philosophy of the day; industries and economics are always changing.
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Build quality into a product throughout production.
End the practice of awarding business on the basis of price tag alone; instead, try a long-
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term relationship based on established loyalty and trust.
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Work to constantly improve quality and productivity.

Institute on-the-job training.
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Teach and institute leadership to improve all job functions.

Drive out fear; create trust.
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Strive to reduce intradepartmental conflicts.

Eliminate exhortations for the work force; instead, focus on the system and morale.
(a) Eliminate work standard quotas for production. Substitute leadership methods for
improvement.
(b) Eliminate MBO. Avoid numerical goals. Alternatively, learn the capabilities of
processes, and how to improve them.
Remove barriers that rob people of pride of workmanship
Educate with self-improvement programs.
Include everyone in the company to accomplish the transformation.
Comments on some of Dr. Deming's points:

The first of the 14 Points charges management with establishing continual improvement through
the redefinition of the company's purposes. Quite simply, the company must survive, compete
well, and constantly replenish its resources for growth and improvement through innovation and
research.
In the fifth point, Dr. Deming states that only a commitment to a process of continual
improvement truly rewards. A company cannot expect to ignite and feed a quality revolution
from which it will prosper for all time. Instead, it must adopt an evolutionary philosophy; such a
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philosophy prevents stagnation and arms the company for the uncertain future. Part of the
evolutionary mentality is to abandon practices that, despite their obvious short term benefits,
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ultimately detract from the company's effectiveness.
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Point number four specifically warns against this scenario: the purchasing department of a
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company consistently patronizes those vendors who offer the lowest prices. As a result, the
company often purchases low quality equipment. Dr. Deming urges companies to establish loyal
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ties with suppliers of quality equipment.
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Point five condemns mass inspection procedures as inefficient; a product should be monitored by
the workers, throughout the assembly process, to meet a series of quality standards. In the long
term, the use of better equipment and a more intense worker-oriented method of inspection will
markedly improve productivity and lower costs. In order to accomplish these goals, a company
must develop a consistent, active plan that involves its entire labor force in the drive toward total
quality.
Cooperation- Dr. Deming based his new business philosophy on an ideal of cooperation. In order
to fulfill its own potential, a company must harness the power of every worker in its
employment; for that reason, the third point bars shoddy workmanship, poor service, and
negative attitudes from the company.
Theory of Profound Knowledge -- In order to promote cooperation, Deming espouses his Theory
of Profound Knowledge. Profound knowledge involves expanded views and an understanding of
the seemingly individual yet truly interdependent elements that compose the larger system, the
company. Deming believed that every worker has nearly unlimited potential if placed in an
environment that adequately supports, educates, and nurtures senses of pride and responsibility;
he stated that the majority--85 percent--of a worker's effectiveness is determined by his
environment and only minimally by his own skill.
A manager seeking to establish such an environment must:

employ an understanding of psychology--of groups and individuals.
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eliminate tools such as production quotas and sloganeering which only alienate workers from
their supervisors and breed divisive competition between the workers themselves.
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form the company into a large team divided into sub-teams all working on different aspects of
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the same goal; barriers between departments often give rise conflicting objectives and create
unnecessary competition.
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spread profit to workers as teams, not individuals.
eliminate fear, envy, anger, and revenge from the workplace.
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employ sensible methods such as rigorous on-the-job training programs.

In the resulting company, workers better understand their jobs--the specific tasks and techniques
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as well as their higher value; thus stimulated and empowered, they perform better. The expense
pays for itself.
The ideas of W. Edwards Deming may seem common or obvious now; however, they've become
embedded in our culture of work. Dr. Deming's ideas (and personal example) of hard work,
sincerity, decency, and personal responsibility, forever changed the world of management. "It is
not enough to just do your best or work hard. You must know what to work on."- W. Edwards
Deming
Biography As the sun rose on the 20th century, a baby was born to the Deming family in a small
town in Iowa. W. Edwards Deming would become a colossus of modern management thinking.
He would live through most of the century, and have a tremendous impact on its second half.
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The Demings moved from Iowa to Wyoming, and in 1917, Edwards entered the University of
Wyoming. To fund his education, he worked as a janitor. He graduated in 1921, and went on to
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the University of Colorado, where he received a M.S. in physics and mathematics. This led
towards a doctorate in physics from Yale University.
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From physics, Dr. Deming gravitated towards statistics. The U.S. Census Bureau hired Dr.
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Deming in 1940, just at the time that the Bureau shifted its procedure from a complete count to a
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sampling method. Upon completion of the 1940 census, Deming began to introduce Statistical
Quality Control into industrial operations. In 1941, he and two other experts began teaching
Statistical Quality Control to inspectors and engineers.
Dr. Deming started his own private practice in 1946, after his departure from the Census Bureau.
For more than forty years his firm served its clientele--manufacturers, telephone companies,
railways, trucking companies, census takers, hospitals, governments, and research organizations.
As a professor emeritus, Dr. Deming conducted classes on sampling and quality control at New
York University. For over ten years, his four-day seminars reached 10, 000 people per year.
The teachings of Dr. Deming affected a quality revolution of gargantuan significance on

American manufacturers and consumers. Through his ideas, product quality improved and, thus,
popular satisfaction. His influential work in Japan--instructing top executives and engineers in
quality management--was a driving force behind that nation's economic rise. Dr. Deming
contributed directly to Japan's phenomenal export-led growth and its current technological
leadership in automobiles, shipbuilding and electronics. The Union of Japanese Science and
Engineering (JUSE) saluted its teacher with the institution of the annual Deming Prize for
significant achievement in product quality and dependability. In 1960, the Emperor of Japan
bestowed on Dr. Deming the Second Order Medal of the Sacred Treasure.
Stateside, the American Society for Quality Control awarded him the Shewhart Medal in 1956.
In 1983, Dr. Deming received the Samuel S. Wilks Award from the American Statistical
Association and election to the National Academy of Engineering. President Reagan honored
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him with the National Medal of Technology in 1987, and, in 1988, the National Academy of
Sciences lauded him with the Distinguished Career in Science award. He was inducted into the
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Automotive Hall of Fame in 1991.
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Dr. Deming was a member of the International Statistical Institute. He was elected in 1986 to the
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Science and Technology Hall of Fame in Dayton. From the University of Wyoming, Rivier
College, the University of Maryland, Ohio State University, Clarkson College of Technology,
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Miami University, George Washington University, the University of Colorado, Fordham

University, the University of Alabama, Oregon State University, the American University, the
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University of South Carolina, Yale University, Harvard University, Cleary College, and
Shenandoah University, Dr. Deming received the degrees L.L.D. and Sc.D. honorius causa.
From Yale University, he won the Wilbur Lucius Cross Medal, and the Madeleine of Jesus from
Rivier College.
Dr. Deming authored several books and 171 papers. His books, Out of the Crisis (MIT/CAES,
1986) and The New Economics (MIT/CAES, 1994) have been translated into several languages.
Myriad books, films, and videotapes profile his life, his philosophy, and the successful
application of his worldwide teachings.
BARRIERS TO QUALITY MANAGEMENT :

To fully understand the TQM movement, we need to look at the philosophies of notable
individuals who have shaped the evolution of TQM. Their philosophies and
teachings have contributed to our knowledge and understanding of quality today.
One idea may be to look at new industry philosophies around continuous improvement.
The adoption of 'way of working' philosophies and 'lean' philosophies and how they tie in
with TQM.
buzzwords such as 'empowerment', 'training' and 'knowledge-sharing' may be useful in
researching seminars on such topics.
look at how attitudes of employees are improved with 'growth involvement'
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An interesting was the 'Fish Philosophy'.
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I appreciate that this does not directly answer your question, but may help you to find
research alternatives.
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Definition of TQM:
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Total Quality Management is a management approach that tries to achieve and sustain long term
organizational success by encouraging employee feedback and participation, satisfying customer
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needs and expectations, respecting societal values and beliefs, and obeying governmental statutes
and regulations.
Five Pillars of TQM are,
Product
Process
System
People
Leadership
Total Quality Management is an effective system for integrating the quality development, quality
maintenance and quality improvement efforts of various groups in an organization continuously,
so as to enable marketing, engineering, production and service at the most economic levels
which allow for full customer satisfaction.
The TQM is applied to many stages of Industrial Cycle which are listed below:
1. Marketing
2. Engineering
3. Purchasing
4. Manufacturing
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5. Mechanical
6. Shipping
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7. Installation and product service.
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<Strong>Fundamental factors affecting Quality: (9 Ms)
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1. Market
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2. Money
3. Management
4. Men
5. Motivation
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6. Materials
7. Machines and Mechanization
8. Modern Information Methods
9. Mounting Product Requirements
Benefits of TQM:
Customer satisfaction oriented benefits:
1. Improvement in product quality

2. Improvement in product design
3. Improvement in production flow
4. Improvement in employee morale and quality consciousness
5. Improvement in product service
6. Improvement in market place acceptance
Economic improvement oriented benefits:
1. Reduction in operating costs

2. Reduction in operating losses
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3. Reduction in field service costs

4. Reduction in liability exposure
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Historical Review:
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The history of quality control is undoubtedly as old as industry itself.
In 1924, W.A. Shewhart of Bell Telephone Laboratories developed a statistical chart of the
control of product variables. This chart is considered to be the beginning of statistical quality
control. Later in the same decade, H.F.Dodge and H.G.Romig, both of Bell Telephone
Laboratories, developed the area of acceptance sampling as a substitute of 100% inspection.
In 1946, the American society for Quality Control was formed. Recently the name was changed
into Americn Society for Quality (ASQ).

In 1950s W.Edwards Deming emphasized about the managements responsibility to achieve
quality.
In 1960s the first quality control circles were formed for the purpose of quality improvement.
In the late 1980s the automotive industry began to emphasize statistical process control.
After 1990s the ISO became the model for a quality management system world wide.
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Quality Movement in India:
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Before Independence in India, quality has been a tradition but not in a consolidated form.
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Walter Shewhart, the father of Statistical Quality Control, visited India for a short period of three
months during 1947-48 and initiated the SQC movements in Indian companies.
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The quality movement was consolidated in the 1980s in the Indian Industries to bring out
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synergy of resources by the pioneering efforts of Confederation of Indian Industries (CII)
Dr.W.Edward Deming, the father of Quality Control , who taught Japanese about applying
PDCA cycle (Deming Cycle) came to India in early 1950s.
The TQM movement in USA in 1980s triggered quality movement in India in the year 1982 and
Quality Circle was born.
Prof. Ishikawa , the founder of quality movement in Japan was invited by CII to come to India to
address Indian Industry in 1986.
CII organized a first major seminar with Joseph Juran in 1987.
CII provided a focus and an impetus to the quality movement by forming a TQM division in
1987. By then the focus was shifted from quality circles to quality management.
CII set up the TQM division with the help of 21 companies who agreed to support the journey of
TQM in India. The chief executives of these companies formed a National Committee on
Quality.
CII also launched the first newsletter on Quality.
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The year 1987 brought the ISO 9000 standards into reality and visible strategies emerged.
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CII organized training programmes in ISO 9000 quality systems for international standards and
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certification in the year 1989.
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From the year 1991, Indian companies started to get the ISO 9000 certifications.
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The concept of TQM spread over the service sector and technology apart from engineering
applications.
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CII organized and launch of National Quality Campaign in 1992, led by the Prime Minister of
India and the Quality Summit organized by CII has now become an annual feature across the
country.
The future thrust on quality movement in India would be based on:
Application Research (Industry and Academics)

Experience Sharing
ISO certifications
Environmental protection, safety and consumer protection for quality enhancement.
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UNIT II TQM PRINCIPLES 9
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Leadership Strategic quality planning, Quality statements - Customer focus

Customer orientation, Customer satisfaction, Customer complaints, Customer retention -
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Employee involvement Motivation, Empowerment, Team and Teamwork, Recognition

and Reward, Performance appraisal - Continuous process improvement PDSA cycle,
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5s, Kaizen - Supplier partnership Partnering, Supplier selection, Supplier Rating.

40
Strategic Planning:
There are seven basic steps to strategic quality planning.
a) Customer needs
b) Customer positioning
c) Predict the future
d) Gap analysis
e) Closing the gap
f) Alignment
g) Implementation
Strategic planning can be performed by any organization. It can be highly effective, allowing
organizations to do the right thing at the right time, every time.
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Quality Planning:
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Quality planning is the pre-determined activities in order to achieve conformation to the
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requirements. Many organizations are finding that strategic quality plans and business plans are
inseparable. The quality planning procedure given by Joseph.A.Juran has the following steps:
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Identify the customers

Determine their needs
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Translate those needs into our language.

Develop a product that can respond to those needs
Optimize the product features to meet our and customer needs
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1. it is far from simple.
2. it is not an objective statistic, but more of feeling and attitude.
3. therefore like people's opinion
Quality Costs:
All organizations make use of the concept of identifying the costs needed to carry out the various
functions product development, marketing, personnel, production etc.,

Until the 1950s this cost concept had not been extended to quality function, except for the
departmental activities of inspection and testing.
During the 1950s the concept of Quality Cost emerged. Different people assigned different
meanings to the term. Some people equated quality cost with the cost of attaining quality; some
people equated the term with the extra incurred due to poor quality. But, the widely accepted
thing is Quality cost is the extra cost incurred due to poor or bad quality of the product or
service.
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Categories of Quality Cost:
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Many companies summarize quality costs into four broad categories. They are,
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a) Internal failure costs - The cost associated with defects that are found prior
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to transfer of the product to the customer.
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b) External failure costs - The cost associated with defects that are found after
product is shipped to the customer.
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c) Appraisal costs - The cost incurred in determining the degree of

conformance to quality requirement.
d) Prevention costs - The cost incurred in keeping failure and appraisal

costs to a minimum.
Sometimes we can also include the hidden costs i.e., implicit costs.
Traditional Quality cost model
Emerging Quality Cost Model
Higher quality doesn't mean higher costs
The companies estimate quality costs for the following reasons :
a) To quantifying the size of the quality problem in the language of money improves
communication between middle managers and upper managers.
b) To identify major opportunities for cost reduction.
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c) To identify the opportunities for reducing customer dissatisfaction and associated threats to
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product salability.
Analysis Techniques for Quality Costs:

i. Trend Analysis
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ii. Pareto Analysis
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CUSTOMER SATISFACTION
Customers are important asset to the organization, satisfied customers will buy more, and buy
more frequently, and pay their bill promptly.
In a manufacturing and service organization, customer satisfaction is considered as a measure of
quality.TQM implies an organizational drive with meeting or exceeding customer
needs.Understanding the customer's needs and expectations is essential to winning new business.
To attain this level, the organization should examine their quality system to respond to their ever
changing customer's needs.
A simple definition of customer satisfaction is illustrated below
Teboul model
Characteristics of customer satisfactionand feeling, it is subjective by nature.

4. because of this subjective nature, it is difficult to measure.
5. the measurement of customer satisfaction is not precise.
6. the customer satisfaction should not be viewed in vacuum, i.e., it should be compared with the
level of satisfaction they have with competitor's product are service.
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Types of customers.
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1. Internal customers - each of them receives a product or service and in exchange, providers a
product or service.
2. external customers - one who uses the product or service, the one who purchase the product, or
the who influences the sale of theproduct.
One basic concept of TQM is focus on customers, both internal and external.
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CUSTOMER RETENTION
Customer retention represents the activities that produces the necessary customer satisfaction
which in turn creates the customer loyalty.
customer retention moves customer satisfaction to the next level by determining what is truly
important to the customers and making sure that the customer satisfaction system focuses valuble
resources on things that are important to the customer. Customer rettention is the connection
between customer satisfaction and the bottom line.
World-class companiesknoe that continuous improvement and customer satisfaction should go
hand-in-hand.
Improved service to the customer is a costlier affair, so an organization must determine its return
on the service invesment. For this the important service elements that significantly improve
revenues and market share shuld be determined.
One survey indicates, it requires five times of effort to win a new customer than retaining a
present customer. In this context customer retention is important for organizational sucess.
CUSTOMER COMPLAINTS
Unlike the customer's feedback the customer complaints are reactive, and they are important in
gaining data on customer perceptions.
A disatisfied customer can easily become a lost customer because of their frustrations.This
customer dissatisfaction become a measure for organizational process improvement measures.
Every single complaint should be accepted, analyzed, and acted upon to again win over
customer's confidence.Since more than 50% of the dissatisfied customers will buy again if they
are complaint has been heard and resolved. By adopting a positive approach the complaints can
be seen as an oppurtunity to obtain information and provide a positve service to the customer.
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Handling the customer complaints
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1.investigaste customer's experiences by actively receiving the customer feedback and then
acting promptly.
2. develop procedures for complaint resolution that include empowering front-line employee.
3. analyze complaints, try to put them in a category for speedy response.
4. Work to identify process and materuial variations and then eliminaste the root cause.'more
inspection' is not a corrective action.
5. Afetr receiving the response, a senior manager should contact the customer and strive top
resolve the concern
6. Establish customer satsfaction measures and constantly monitor them
7. Communicate complaint information, as well as the results of all inquiries and solutions, to all
people in the organization.
8. provide a monthly complaint report to the quality council for their evalution and if needed, the
assignment of process im[provement teams.
9. identify customer's expectations in advance rather than afterward through complaint analysis.
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Three key elements to a partnering relationship
i. Long-term commitment
ii. Trust
iii. Shared vision
Three types of sourcing
a) Sole sourcing
b) Multiple sourcing
c) Single sourcing
Ten conditions for the selection and evaluation of suppliers
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I. The supplier understands and appreciates the management philosophy of the organization.
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II. The supplier has a stable management system.
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III. The supplier maintains high technical standards and has the capability of dealing with future
technological innovations.
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IV. The supplier can supply precisely those raw materials and parts required by the purchaser,
and those supplied meet the quality specifications.
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V. The supplier has the capability to produce the amount of production needed or can attain that
capability.
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VI. There is no danger of the supplier breaching corporate secrets.

VII. The price is right and the delivery dates can be met. In addition, the supplier is easily
accessible in terms of transportation and communication.
VIII. The supplier is sincere in implementing the contract provisions.
IX. The supplier has an effective quality system and improvement program such as ISO/QS
9000.
X. The supplier has a track record of customer satisfaction and organization credibility.
Definition of Quality:
The dictionary has many definitions of quality. A short definition that has achieved acceptance
is: Quality is Customer Satisfaction. Fitness for use is an alternative short definition. Here,
customer means anyone who is impacted by the product or process.
Quality is a predictable degree of uniformity and dependability, at low cost and suited to the
market.
Quality is a relative term, generally used with reference to the end-use of a product. Quality
should be aimed at the needs of the consumer, present and future.
According to ISO 8402, quality is the totality of features and characteristics of a product or
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service that bear on its ability to satisfy stated or implied needs.
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Broadly quality is:
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a) Fitness for use
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c) Degree of preference
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d) Degree of excellence
e) Conformity to requirements
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Dimensions of Quality :
The following are the components reveal the dimensions of quality.
Manufacturing Industries Service Industries

Product Features Accuracy
Performance Timeliness
Reliability Completeness
Durability Friendliness and courtesy
Ease of use Anticipating customer needs
Serviceability Knowledge of server

Esthetics
Availability Reputation
Reputation
EMPLOYEE INVOLVEMENT
Japanese management emphasizes the need to consider employee as a valuble resources
rather than treating them as a mere tools for production.
Employee involvement is one approach to improve quality and productivity. It is not an
replacement for management nor is it the final word in quality improvement, it aims at better
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meeting of organizational goals at all levels.
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Motivation
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Knowledge fo motivation helps us to understand the utilization fo employee involvement to

achieve process improvement.
THEORIES OF MOTIVATION
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He explained the motivation interms of a heirarchy of needs and that there were five levels.
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These are survival, security, social, esteem, and self-actualization.

It is important to note that as employees move up the heirarchy, they will immedietly revert back
to the previous level if they feel threatned.
HERZBERG'S TWO FACTOR THEORY
Herzberg extends the Maslow's theory by using empirical research oin employee motivation.
He found that people were motivated by the motivators ( intrinsic factors) like recognition,
responsibility, achievement, advancement and the work itself.
In addition he found that bad feelings were associated with preventable dissatisfiers or hygiene
factors (extrinsic factors) like low salary, minimal fringe benefits, poor working conditions, illdefined organizational policies and mediocre(ordinary) supervision.
He also explained that the presence of extrinsic factors( for example good working condition)
does not produce any motivation but their absence will create dissatifaction among employees.
In a same manner the absence of intrinsic factors ( for example advancement) does not produce
any dissatisfaction but their presence will provide strong level of motivation.
Mcgregor's Theory X and Theory Y
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How to motivate work force
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1. Know thyself
2. Know your employees
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3. Establish a positive attitude

4. Share the goals
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6. Develop intersting work
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7. Communicate
8. Celebrate sucess
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EMPOWERMENT
The dictionary meaning of the term empowerment is to invest people with authority.Its purpose
is to tap the enourmous potential that lies within every worker.
An operational definition is as follows:
Empowerment is an environment in which people have the ability, the confidence, and the
commitment to take the responsibility and ownership to improve the process and initiate the
necessary steps to satisfy customer requirements within well defined boundaries in order to
achieve organizational values and goals.
Empowerment is nothing unusual, people generally want to be more in charge of their own jobs
and carrers. afterall, they do that sucessfully in their personal lives every day. Most people
appreciate and value the trust and respopnsibility.This empowerment helps greatly in eliminating
resistence to changes.
Empowerment is different from delegation or job enrichment, which means distributing or
entrusting work to others.In empowerment employee is held responsible for accomplishing a
whole task.i.e., employee becomes process owner, thus not only responsible but also
accountable.
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Three conditions are necessary for empowering employees
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1. Everyone must understand the need for change
2. The system needs to change to the new paradigm( model/standard)
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3. The organization must enable its employees.
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TEAMS
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Teams are very effective in solving all quality and productivity problems.
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Team is defined as a group of peopleworking together to achieve common objectives or goals.

Teamwork is the cumulative actions of the team during which each member of the team
subordinates his interests and opinions to fulfill the objectives or goals of the group.
Many heads are better than one, especially in meeting ever-changing customer needs.
Each member of the team have special ability that can be used for the problem.Many processes
are so complex that one person cannot able solve completely.
Based on the synergic effect, whole is greater than sum of its parts.Team work is better than sum
of its member contribution.
Team builds a rapport with each other that allows everyone to do a better job.
Teams provide the vehicle for improved communication.
Types of teams
Process improvement teams

cross-functional teams
natural work teams
self-directed/ self managed teams
Characteristics of successful teams
Sponsor
Team charter
Team competition
training
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ground rules
clear objectives
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accountability
well-defined decision procedures
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resources
trust
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open communication
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appropriate leadership
balanced participation
cohesiveness.
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CONTINUOUS PROCESS IMPROVEMENT

The basic ways for a continuous process improvement are
Reduce resources
Reduce errors
Meet or exceed expectations of downstream customers
Make the process safer
Make the process more satisfying to the person doing it.
Phases of a Continuous Process Improvement Cycle are

a) Identify the opportunity
b) Analyze the process
c) Develop the optimal solutions
d) Implement
e) Study the results
f) Standardize the solution
g) Plan for the future
JURAN TRILOGY
Three components of the Juran Trilogy are
i. Planning
ii. Control
iii. Improvement
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PDSA CYCLE
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The steps in the PDSA cycle are

The basic Plan-Do-Study-Act is an effective improvement technique.
1st. Plan carefully what is to be done
2nd. Carry out the plan
3rd. Study the results
4th. Act on the results by identifying what worked as planned and what didnt.
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The Demings PDSA cycle is a well-known model for continual process

improvement. It teaches organizations to plan an action, do it, study to see how it
conforms to the plan and act on what has been learned.
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The terms are defined below.

Step 1: Plan Recognize an opportunity, and plan the change.
Step 2: Do Implement the change.
Step 3: Study Review the implementation, analyze the results and identify
learnings.
Step 4: Act Take action based on what you learned in the step 3. If the
change was successful, incorporate the learnings from the test into wider
changes. If not, go through the cycle again. The PDSA cycle for sustainable
development of TQM shown in Fig. 1 is made up of four steps.
Step 1: Plan for TQM
Quality having become one of the twentieth centurys most important
management ideas, has exorcised driven out the traditional business as well
as graduate management school notion that a companys success means making

products and offering services quicker and cheaper, selling them hard, and
providing a product service net to try to catch those that do not work well
(Feigenbaum, 1999). TQM has replaced this notion with the business principle
that making products better is the best way to make them quicker and cheaper
and that what you do to make quality better anywhere in an organization makes it
better everywhere in the organization. The evolution of TQM into and a full blown
management took shape through the works of Crosby (1979), Deming (1986),
Feigenbaum (1983) and Juran (1986). The primary focus of TQM philosophy is on
the hands and minds that employ the tools and techniques rather than the tools
and techniques themselves (Antony et al., 2002).
ISO 9000: 2000 versions adopt TQM philosophy with stronger focus on
customer satisfaction and an effective process-oriented approach emphasizing on
continual performance improvement. Clearly the new revised standard is a step
forward towards TQM, customer satisfaction and does not just achieve product
quality assurance (Magd et al., 2003). Those companies wishing to remain
competitive and improve their quality systems are recommended the use of ISO
9000 as a foundation for a much broader system of TQM. This is based on the
fact that ISO 9000 is an important part of TQM, and the implementation of both
the approaches will lead to organizational success and competitive advantage.
Rao et al. (1997) conducted a four nation study (US, China, India and Mexico) and
concluded that ISO 9000 registered companies have better quality management
practices and enjoy better quality results than companies that are planning to get
registered and are not interested in registration. The adoption of TQM in an
organization has to start from a strategy for implementation involving the planning
and preparation of document detailing the way forward (Yusof & Aspinwall 2000a).
The preparation of such a document may constitute:
1. Creation of a co-ordination body;
2. Development of a vision, mission and policy statements;
3. Education for the top management and coordinating body members on
total quality principles and philosophy;
4. Selection and trial run of the first improvement project;
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Appraising the companys current level of quality management

Implementation
Step 2: Implement TQM
Taylor and Wright (2003) conducted a longitudinal study of TQM implementation
for a cohort of 109 firms in UK over a 5-year period and found that 42 firms,
predominantly small in size, had discontinued with TQM, while the remaining 67
firms reported varying degree of success. The study concluded that the size of the
firm, the nature of the customer base and the holding of ISO 9000 series
certification has had no significant effect on TQM outcomes for this cohort. The
research has highlighted some necessary antecedents for TQM success. In
particular, managers need to understand the nature and purpose of TQM, its
relationship to ISO 9000, and the potential benefits that can accrue from its
implementation. Antony et al. (2002) conducted an empirical study in Hong Kong
and developed an instrument by using the perceptions and experiences of TQMbased
companies. The authors concluded that the training and education is the
most critical success factor for the successful implementation of TQM in Hong
Kong organizations.
Step 3: Study and measure the level of TQM implementation
Regardless of which TQM model is adopted, the CSFs must be
operationalized for effective TQM implementation. Manifestation of CSFs results
in generation of Quality-related Action Programs (QAPs). The measurement of
TQM involves selecting a list of QAPs to measure each CSF, providing a
measurement scale for the QAPs, and then testing the instrument for reliability
and validity. For each CSF the actual level of TQM practice is represented by the
average of the QAPs ratings for that CSF. A vector of the averages for all the
CSFs represents the level of TQM implementation for the organization as a whole
(Saraph et al., 1989). Saraph et al. (1989) study was replicated by Badri et al.
(1995) in United Arab Emirates and Quazi et al. (1998) in Singapore. The TQM
implementation level in Singapore organizations was at a medium level and in the
organizations in the United Arab Emirates was found to be low.
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5S
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5S Philosophy focuses on effective work place organization and standardized work procedures.
5S simplifies your work environment, reduces waste and non-value activity while improving
quality efficiency and safety.
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Sort (Seiri) the first S focuses on eliminating unnecessary items from the workplace.
Set In Order (Seiton) is the second of the 5Ss and focuses on efficient and effective storage
methods.
Shine: (Seiso) Once you have eliminated the clutter and junk that has been clogging your work
areas and identified and located the necessary items, the next step is to thoroughly clean the work
area.
Standardize: (Seiketsu) Once the first three 5Ss have been implemented, you should concentrate
on standardizing best practice in your work area.
Sustain: (Shitsuke) This is by far the most difficult S to implement and achieve.
Once fully implemented, the 5S process can increase morale, create positive impressions on
customers, and increase efficiency and organization.
Kaizen
Kaizen is a Japanese word for the philosophy that defines managements role in continuously
encouraging and implementing small improvements involving everyone. It is the process of
continuous improvement in small increments that make the process more efficient, effective,
under control and adaptable.
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The objectives of Performance measures
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i. Establish baseline measures and reveal trends.

ii. Determine which processes need to be improved.
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iii. Indicate process gains and losses.

iv. Compare goals with actual performance.
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v. Provide information for individual and team evaluation.
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vi. Provide information to make informed decisions.

vii. Determine the overall performance of the organization.
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The characteristics used to measure the performance of a particular process

i. Quantity
ii. Cost
iii. Time
iv. Accuracy
v. Function
vi. Service
vii. Aesthetics
The criteria to evaluate the performance measures
Simple _
Few in number
Developed by users
Relevance to customer
Improvement
Cost
Visible
TimelyAligned
Supplier Rating :
It depends on the characteristics used to measure the performance of a particular process
i. Quantity
ii. Cost
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iii. Time
iv. Accuracy
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v. Function
vi. Service
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vii. Aesthetics
The criteria to evaluate the performance measures
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Few in number
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Developed by users
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Relevance to customer
Improvement
Cost
Visible
Timely
Aligned
UNIT III TQM TOOLS & TECHNIQUES I 9

The seven traditional tools of quality New management tools Six-sigma: Concepts,
methodology, applications to manufacturing, service sector including IT Bench marking
Reason to bench mark, Bench marking process FMEA Stages, Types.
The seven tools of quality
i. Pareto Diagram
ii. Process Flow Diagram
iii. Cause and Effect Diagram
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iv. Check Sheets
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v. Histogram
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vi. Control Charts
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vii. Scatter Diagrams
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The new seven management tools
i. Affinity Diagram
ii. Interrelationship Digraph
iii. Tree Diagram
iv. Matrix Diagram
v. Prioritization Matrices
vi. Process Decision Program Chart
vii. Activity Network diagram
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Benchmarking
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Benchmarking is a systematic method by which organizations can measure themselves against

the best industry practices. The essence of benchmarking is the process of borrowing ideas and
adapting them to gain competitive advantage. It is a tool for continuous improvement.
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BENCHMARKING PROCESS
1.
2.
3.
4.
5.
Planning
Analysis
Integration
Action
Maturity
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Six Sigma
Define - improvement opportunity with an emphasis on increasing customer satisfaction.
Measure - determine process capability
Analyze - identify the vital few process input variables that affect key product output variables
(Finding the knobs).
Improve - Make changes to process settings, redesign processes, etc. to reduce the number of
defects of key output variables.
Control - Implement process control plans, install real-time process monitoring tools, standardize
processes to maintain levels.
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SERVICE QUALITY
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Customer service is the set of activities anorgaqnization uses to win and retain customers'
satisfaction. it can be provided before, during, and after the sale fo the product.
Elements of customer service are:
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1. identify each market segment
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2.write down the requirements

3.communicate the requirements
4.organise processes
5.organize the physical spaces
Customer care
6. meet the customer's expectations

7. get the customer point of view
8. deliver what is promised
9. make the customer feel valued
10.respond to all complaints
11.over respond to the customer.
12.provide a clean and comfortable customer reception environment.
Communication
13.optimize the trade fo between time and personal attention
14. minimize the number of contact points.
15 provide pleasant, knoweledgble, and enthusiastic employees.
16. write documents in customer friendly language.
front-line people
17. hire people who like people
18. challenge them to develop better methods.
19. give them a authority to solve problems
20. serve them as internal customers
21. be sure they are adequetly trained.
22. recognize and reward performance.
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Leadership
23.lead by example
24. listen to the front line employee
25. strive for continuous process improvement.
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The three key elements to a partnering relationship

Long-term commitment
Trust
Shared vision
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The three types of sourcing

Sole sourcing
Multiple sourcing
Single sourcing
UNIT IV TQM TOOLS & TECHNIQUES II 9

Quality circles Quality Function Deployment (QFD) Taguchi quality loss function
TPM Concepts, improvement needs Cost of Quality Performance measures.
QFD
Quality Function Deployment is a planning tool used to fulfill customer expectations. It is a

disciplined approach to product design, engineering, and production and provides in-depth
evaluation of a product.
Quality Function Deployment (QFD) was developed to bring this personal interface to
modern manufacturing and business. In today's industrial society, where the growing
distance between producers and users is a concern, QFD links the needs of the
customer (end user) with design, development, engineering, manufacturing, and service
functions.
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QFD is:
1. Understanding Customer Requirements
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2. Quality Systems Thinking + Psychology + Knowledge/Epistemology
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3. Maximizing Positive Quality That Adds Value
4. Comprehensive Quality System for Customer Satisfaction
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5. Strategy to Stay Ahead of The Game
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As a quality system that implements elements of Systems Thinking with elements of

Psychology and Epistemology (knowledge), QFD provides a system of comprehensive
development process for:
Understanding 'true' customer needs from the customer's perspective
What 'value' means to the customer, from the customer's perspective
Understanding how customers or end users become interested, choose, and are
satisfied
Analyzing how do we know the needs of the customer
Deciding what features to include
Determining what level of performance to deliver
Intelligently linking the needs of the customer with design, development,
engineering, manufacturing, and service functions
Intelligently linking Design for Six Sigma (DFSS) with the front end Voice of
Customer analysis and the entire design system
QFD is a comprehensive quality system that systematically links the needs of the
customer with various business functions and organizational processes, such as
marketing, design, quality, production, manufacturing, sales, etc., aligning the entire
company toward achieving a common goal.
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It does so by seeking both spoken and unspoken needs, identifying positive quality and
business opportunities, and translating these into actions and designs by using
transparent analytic and prioritization methods, empowering organizations to exceed
normal expectations and provide a level of unanticipated excitement that generates
value.
The QFD methodology can be used for both tangible products and non-tangible
services, including manufactured goods, service industry, software products, IT
projects, business process development, government, healthcare, environmental
initiatives, and many other applications.
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Categories of Quality Cost:
Many companies summarize quality costs into four broad categories. They are,
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a) Internal failure costs - The cost associated with defects that are found prior
to transfer of the product to the customer.
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b) External failure costs - The cost associated with defects that are found after
product is shipped to the customer.
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c) Appraisal costs - The cost incurred in determining the degree of

conformance to quality requirement.
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d) Prevention costs - The cost incurred in keeping failure and appraisal

costs to a minimum.
Sometimes we can also include the hidden costs i.e., implicit costs.
Traditional Quality cost model
Emerging Quality Cost Model

Higher quality doesn't mean higher costs
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The companies estimate quality costs for the following reasons :

a) To quantifying the size of the quality problem in the language of money improves
communication between middle managers and upper managers.
b) To identify major opportunities for cost reduction.
c) To identify the opportunities for reducing customer dissatisfaction and associated threats to
product salability.
Total Productive Maintenance ( TPM ):
It can be considered as the medical science of machines. Total Productive Maintenance (TPM) is
a maintenance program which involves a newly defined concept for maintaining plants and
equipment. The goal of the TPM program is to markedly increase production while, at the same
time, increasing employee morale and job satisfaction.
TPM brings maintenance into focus as a necessary and vitally important part of the business. It is
no longer regarded as a non-profit activity. Down time for maintenance is scheduled as a part of
the manufacturing day and, in some cases, as an integral part of the manufacturing process. The
goal is to hold emergency and unscheduled maintenance to a minimum.
Why TPM ?
TPM was introduced to achieve the following objectives. The important ones are listed below.
Avoid wastage in a quickly changing economic environment.

Producing goods without reducing product quality.
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Reduce cost.
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Produce a low batch quantity at the earliest possible time.

Goods send to the customers must be non defective.
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Similarities and differences between TQM and TPM :
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The TPM program closely resembles the popular Total Quality Management (TQM) program.
Many of the tools such as employee empowerment, benchmarking, documentation, etc. used in
TQM are used to implement and optimize TPM.Following are the similarities between the two.
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1. Total commitment to the program by upper level management is required in both

programmes
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2. Employees must be empowered to initiate corrective action, and

3. A long range outlook must be accepted as TPM may take a year or more to implement
and is an on-going process. Changes in employee mind-set toward their job
responsibilities must take place as well.
The differences between TQM and TPM is summarized below.
Category
TQM
TPM
Object
Quality ( Output and effects )
Equipment ( Input and cause )
Mains of attaining goal
Systematize the management. It is

software oriented
Employees participation and it

is hardware oriented
Target
Quality for PPM
Elimination of losses and

wastes.
Types of maintenance :
1. Breakdown maintenance :
It means that people waits until equipment fails and repair it. Such a thing could be used when
the equipment failure does not significantly affect the operation or production or generate any
significant loss other than repair cost.
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2. Preventive maintenance ( 1951 ):
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It is a daily maintenance ( cleaning, inspection, oiling and re-tightening ), design to retain the
healthy condition of equipment and prevent failure through the prevention of deterioration,
periodic inspection or equipment condition diagnosis, to measure deterioration. It is further
divided into periodic maintenance and predictive maintenance. Just like human life is extended
by preventive medicine, the equipment service life can be prolonged by doing preventive
maintenance.
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2a. Periodic maintenance ( Time based maintenance - TBM) :
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Time based maintenance consists of periodically inspecting, servicing and cleaning equipment
and replacing parts to prevent sudden failure and process problems.
2b. Predictive maintenance :
This is a method in which the service life of important part is predicted based on inspection or
diagnosis, in order to use the parts to the limit of their service life. Compared to periodic
maintenance, predictive maintenance is condition based maintenance. It manages trend values,
by measuring and analyzing data about deterioration and employs a surveillance system,
designed to monitor conditions through an on-line system.
3. Corrective maintenance ( 1957 ) :
It improves equipment and its components so that preventive maintenance can be carried out
reliably. Equipment with design weakness must be redesigned to improve reliability or
improving maintainability
4. Maintenance prevention ( 1960 ):

It indicates the design of a new equipment. Weakness of current machines are sufficiently
studied ( on site information leading to failure prevention, easier maintenance and prevents of
defects, safety and ease of manufacturing ) and are incorporated before commissioning a new
equipment.
TPM - History:
TPM is a innovative Japanese concept. The origin of TPM can be traced back to 1951 when
preventive maintenance was introduced in Japan. However the concept of preventive
maintenance was taken from USA. Nippondenso was the first company to introduce plant wide
preventive maintenance in 1960. Preventive maintenance is the concept wherein, operators
produced goods using machines and the maintenance group was dedicated with work of
maintaining those machines, however with the automation of Nippondenso, maintenance became
a problem as more maintenance personnel were required. So the management decided that the
routine maintenance of equipment would be carried out by the operators. ( This is Autonomous
maintenance, one of the features of TPM ). Maintenance group took up only essential
maintenance works.
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Thus Nippondenso which already followed preventive maintenance also added Autonomous
maintenance done by production operators. The maintenance crew went in the equipment
modification for improving reliability. The modifications were made or incorporated in new
equipment. This lead to maintenance prevention. Thus preventive maintenance along with
Maintenance prevention and Maintainability Improvement gave birth to Productive maintenance.
The aim of productive maintenance was to maximize plant and equipment effectiveness to
achieve optimum life cycle cost of production equipment.
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By then Nippon Denso had made quality circles, involving the employees participation. Thus all
employees took part in implementing Productive maintenance. Based on these developments
Nippondenso was awarded the distinguished plant prize for developing and implementing TPM,
by the Japanese Institute of Plant Engineers ( JIPE ). Thus Nippondenso of the Toyota group
became the first company to obtain the TPM certification.
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TPM Targets:
P
Obtain Minimum 80% OPE.
Obtain Minimum 90% OEE ( Overall Equipment Effectiveness )
Run the machines even during lunch. ( Lunch is for operators and not for machines ! )
Q
Operate in a manner, so that there are no customer complaints.
C
Reduce the manufacturing cost by 30%.
D
Achieve 100% success in delivering the goods as required by the customer.
S
Maintain a accident free environment.
M
Increase the suggestions by 3 times. Develop Multi-skilled and flexible workers.
1. Adoption of life cycle approach for improving the overall
performance of production equipment.
Motives of TPM
2. Improving productivity by highly motivated workers which is

achieved by job enlargement.
3. The use of voluntary small group activities for identifying the
cause of failure, possible plant and equipment modifications.
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Uniqueness of TPM
The major difference between TPM and other concepts is that the
operators are also made to involve in the maintenance process. The
concept of "I ( Production operators ) Operate, You ( Maintenance
department ) fix" is not followed.
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1. Achieve Zero Defects, Zero Breakdown and Zero accidents in all

functional areas of the organization.
TPM Objectives
2. Involve people in all levels of organization.
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3. Form different teams to reduce defects and Self Maintenance.
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Direct benefits of TPM
1. Increase productivity and OPE ( Overall Plant Efficiency ) by 1.5

or 2 times.
2. Rectify customer complaints.
3. Reducethe manufacturing cost by 30%.
4. Satisfy the customers needs by 100 % ( Delivering the right
quantity at the right time, in the required quality. )
5. Reduce accidents.
6. Follow pollution control measures.
Indirect benefits of TPM
1. Higher confidence level among the employees.

2. Keep the work place clean, neat and attractive.
3. Favorablechange in the attitude of the operators.
4. Achieve goals by working as team.

5. Horizontaldeployment of a new concept in all areas of the
organization.
6. Share knowledge and experience.
7. The workers get a feeling of owning the machine.
OEE ( Overall Equipment Efficiency ) :
OEE = A x PE x Q
A - Availability of the machine. Availability is proportion of time machine is actually available
out of time it should be available.
A = ( MTBF - MTTR ) / MTBF.
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MTBF - Mean Time Between Failures = ( Total Running Time ) / Number of Failures.
MTTR - Mean Time To Repair.
PE - Performance Efficiency. It is given by RE X SE.
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Rate efficiency (RE) : Actual average cycle time is slower than design cycle time because of
jams, etc. Output is reduced because of jams
Speed efficiency (SE) : Actual cycle time is slower than design cycle time machine output is
reduced because it is running at reduced speed.
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Q - Refers to quality rate. Which is percentage of good parts out of total produced sometimes
called "yield".
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Steps in introduction of TPM in a organization :

Step A - PREPARATORY STAGE :
STEP 1 - Announcement by Management to all about TPM introduction in the organization :
Proper understanding, commitment and active involvement of the top management in needed for
this step. Senior management should have awareness programmes, after which announcement is
made to all. Publish it in the house magazine and put it in the notice board. Send a letter to all
concerned individuals if required.
STEP 2 - Initial education and propaganda for TPM :
Training is to be done based on the need. Some need intensive training and some just an
awareness. Take people who matters to places where TPM already successfully implemented.
STEP 3 - Setting up TPM and departmental committees :

TPM includes improvement, autonomous maintenance, quality maintenance etc., as part of it.
When committees are set up it should take care of all those needs.
STEP 4 - Establishing the TPM working system and target :
Now each area is benchmarked and fix up a target for achievement.
STEP 5 - A master plan for institutionalizing :
Next step is implementation leading to institutionalizing wherein TPM becomes an
organizational culture. Achieving PM award is the proof of reaching a satisfactory level.
STEP B - INTRODUCTION STAGE
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This is a ceremony and we should invite all. Suppliers as they should know that we want quality
supply from them. Related companies and affiliated companies who can be our customers, sisters
concerns etc. Some may learn from us and some can help us and customers will get the
communication from us that we care for quality output.
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STAGE C - IMPLEMENTATION
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In this stage eight activities are carried which are called eight pillars in the development of TPM
activity.
Of these four activities are for establishing the system for production efficiency, one for initial
control system of new products and equipment, one for improving the efficiency of
administration and are for control of safety, sanitation as working environment.
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STAGE D - INSTITUTIONALISING STAGE

By all there activities one would has reached maturity stage. Now is the time for applying for PM
award. Also think of challenging level to which you can take this movement.
Organization Structure for TPM Implementation :
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Pillars of TPM
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PILLAR 1 - 5S :
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TPM starts with 5S. Problems cannot be clearly seen when the work place is unorganized.
Cleaning and organizing the workplace helps the team to uncover problems. Making problems
visible is the first step of improvement.
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Japanese Term
English Translation
Equivalent 'S' term
Seiri
Organisation
Sort
Seiton
Tidiness
Systematise
Seiso
Cleaning
Sweep
Seiketsu
Standardisation
Standardise
Shitsuke
Discipline
Self - Discipline
SEIRI - Sort out :

This means sorting and organizing the items as critical, important, frequently used items, useless,
or items that are not need as of now. Unwanted items can be salvaged. Critical items should be
kept for use nearby and items that are not be used in near future, should be stored in some place.
For this step, the worth of the item should be decided based on utility and not cost. As a result of
this step, the search time is reduced.
Priority
Frequency of Use
How to use
Low
Less than once per year, Once per

year<
Throw away, Store away from the

workplace
Average
At least 2/6 months, Once per month,

Once per week
Store together but offline
High
Once Per Day
Locate at the workplace
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SEITON - Organise :
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The concept here is that "Each items has a place, and only one place". The items should be
placed back after usage at the same place. To identify items easily, name plates and colored tags
has to be used. Vertical racks can be used for this purpose, and heavy items occupy the bottom
position in the racks.
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SEISO - Shine the workplace :
This involves cleaning the work place free of burrs, grease, oil, waste, scrap etc. No loosely
hanging wires or oil leakage from machines.
SEIKETSU - Standardization :
Employees has to discuss together and decide on standards for keeping the work place /
Machines / pathways neat and clean. This standards are implemented for whole organization and
are tested / Inspected randomly.
SHITSUKE - Self discipline :
Considering 5S as a way of life and bring about self-discipline among the employees of the
organization. This includes wearing badges, following work procedures, punctuality, dedication
to the organization etc.
PILLAR 2 - JISHU HOZEN ( Autonomous maintenance ) :

This pillar is geared towards developing operators to be able to take care of small maintenance
tasks, thus freeing up the skilled maintenance people to spend time on more value added activity
and technical repairs. The operators are responsible for upkeep of their equipment to prevent it
from deteriorating.
Policy :
1. Uninterrupted operation of equipments.
2. Flexible operators to operate and maintain other equipments.
3. Eliminating the defects at source through active employee participation.
4. Stepwise implementation of JH activities.
JISHU HOZEN Targets:
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1. Prevent the occurrence of 1A / 1B because of JH.
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2. Reduce oil consumption by 50%

3. Reduce process time by 50%
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4. Increase use of JH by 50%

Steps in JISHU HOZEN :
1. Preparation of employees.
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2. Initial cleanup of machines.

3. Take counter measures
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4. Fix tentative JH standards

5. General inspection
6. Autonomous inspection
7. Standardization and
8. Autonomous management.
Each of the above mentioned steps is discussed in detail below.
1. Train the Employees : Educate the employees about TPM, Its advantages, JH advantages
and Steps in JH. Educate the employees about abnormalities in equipments.
2. Initial cleanup of machines :
o
Supervisor and technician should discuss and set a date for implementing step1
Arrange all items needed for cleaning
On the arranged date, employees should clean the equipment completely with the
help of maintenance department.
Dust, stains, oils and grease has to be removed.
Following are the things that has to be taken care while cleaning. They are Oil
leakage, loose wires, unfastened nits and bolts and worn out parts.
After clean up problems are categorized and suitably tagged. White tags is place
where problems can be solved by operators. Pink tag is placed where the aid of
maintenance department is needed.
Contents of tag is transferred to a register.
Make note of area which were inaccessible.
Finally close the open parts of the machine and run the machine.
3. Counter Measures :
o
Inaccessible regions had to be reached easily. E.g. If there are many screw to open
a fly wheel door, hinge door can be used. Instead of opening a door for inspecting
the machine, acrylic sheets can be used.
To prevent work out of machine parts necessary action must be taken.
Machine parts should be modified to prevent accumulation of dirt and dust.
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4. Tentative Standard :
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JH schedule has to be made and followed strictly.
Schedule should be made regarding cleaning, inspection and lubrication and it

also should include details like when, what and how.
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5. General Inspection :
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The employees are trained in disciplines like Pneumatics, electrical, hydraulics,

lubricant and coolant, drives, bolts, nuts and Safety.
This is necessary to improve the technical skills of employees and to use

inspection manuals correctly.
After acquiring this new knowledge the employees should share this with others.
By acquiring this new technical knowledge, the operators are now well aware of
machine parts.
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6. Autonomous Inspection :
o
New methods of cleaning and lubricating are used.
Each employee prepares his own autonomous chart / schedule in consultation

with supervisor.
Parts which have never given any problem or part which don't need any
inspection are removed from list permanently based on experience.
Including good quality machine parts. This avoid defects due to poor JH.
Inspection that is made in preventive maintenance is included in JH.
The frequency of cleanup and inspection is reduced based on experience.
7. Standardization :
o
Upto the previous stem only the machinery / equipment was the concentration.
However in this step the surroundings of machinery are organized. Necessary
items should be organized, such that there is no searching and searching time is
reduced.
Work environment is modified such that there is no difficulty in getting any item.
Everybody should follow the work instructions strictly.
Necessary spares for equipments is planned and procured.
8. Autonomous Management :
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OEE and OPE and other TPM targets must be achieved by continuous improve
through Kaizen.
PDCA ( Plan, Do, Check and Act ) cycle must be implemented for Kaizen.
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PILLAR 3 - KAIZEN :
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"Kai" means change, and "Zen" means good ( for the better ). Basically kaizen is for small
improvements, but carried out on a continual basis and involve all people in the organization.
Kaizen is opposite to big spectacular innovations. Kaizen requires no or little investment. The
principle behind is that "a very large number of small improvements are move effective in an
organizational environment than a few improvements of large value. This pillar is aimed at
reducing losses in the workplace that affect our efficiencies. By using a detailed and thorough
procedure we eliminate losses in a systematic method using various Kaizen tools. These
activities are not limited to production areas and can be implemented in administrative areas as
well.
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Kaizen Policy :
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1. Practice concepts of zero losses in every sphere of activity.

2. relentless pursuit to achieve cost reduction targets in all resources
3. Relentless pursuit to improve over all plant equipment effectiveness.
4. Extensive use of PM analysis as a tool for eliminating losses.
5. Focus of easy handling of operators.
Kaizen Target :
Achieve and sustain zero loses with respect to minor stops, measurement and adjustments,
defects and unavoidable downtimes. It also aims to achieve 30% manufacturing cost reduction.
Tools used in Kaizen :

1. PM analysis
2. Why - Why analysis
3. Summary of losses
4. Kaizen register
5. Kaizen summary sheet.
The objective of TPM is maximization of equipment effectiveness. TPM aims at maximization
of machine utilization and not merely machine availability maximization. As one of the pillars of
TPM activities, Kaizen pursues efficient equipment, operator and material and energy utilization,
that is extremes of productivity and aims at achieving substantial effects. Kaizen activities try to
thoroughly eliminate 16 major losses.
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16 Major losses in a organisation:

Loss
Category
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1. Failure losses - Breakdown loss
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2. Setup / adjustment losses

3. Cutting blade loss
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4. Start up loss
5. Minor stoppage / Idling loss.
Losses that impede equipment efficiency
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6. Speed loss - operating at low

speeds.
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7. Defect / rework loss
8. Scheduled downtime loss

9. Management loss
10. Operating motion loss
11. Line organization loss
Loses that impede human work efficiency
12. Logistic loss

13. Measurement and adjustment loss
14. Energy loss
15. Die, jig and tool breakage loss
Loses that impede effective use of production

resources
16. Yield loss.
Classification of losses :
Aspect
Sporadic Loss
Chronic Loss
Causation
Causes for this failure can be

easily traced. Cause-effect
relationship is simple to trace.
This loss cannot be easily

identified and solved. Even if
various counter measures are
applied
Remedy
Easy to establish a remedial

measure
This type of losses are caused

because of hidden defects in
machine, equipment and
methods.
Impact / Loss
A single loss can be costly
A single cause is rare - a

combination of causes trends to
be a rule
Frequency of
occurrence
The frequency of occurrence is

low and occasional.
The frequency of loss is more.
Corrective action
Usually the line personnel in

the production can attend to
this problem.
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Specialists in process
engineering, quality assurance
and maintenance people are
required.
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PILLAR 4 - PLANNED MAINTENANCE :

It is aimed to have trouble free machines and equipments producing defect free products for total
customer satisfaction. This breaks maintenance down into 4 "families" or groups which was
defined earlier.
1. Preventive Maintenance
2. Breakdown Maintenance
3. Corrective Maintenance
4. Maintenance Prevention
With Planned Maintenance we evolve our efforts from a reactive to a proactive method and use
trained maintenance staff to help train the operators to better maintain their equipment.
Policy :
1. Achieve and sustain availability of machines
2. Optimum maintenance cost.
3. Reduces spares inventory.
4. Improve reliability and maintainability of machines.
Target :
1. Zero equipment failure and break down.
2. Improve reliability and maintainability by 50 %
3. Reduce maintenance cost by 20 %
4. Ensure availability of spares all the time.
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Six steps in Planned maintenance :
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1. Equipment evaluation and recoding present status.

2. Restore deterioration and improve weakness.
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3. Building up information management system.
4. Prepare time based information system, select equipment, parts and members and map
out plan.
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5. Prepare predictive maintenance system by introducing equipment diagnostic techniques

and
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6. Evaluation of planned maintenance.
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PILLAR 5 - QUALITY MAINTENANCE :

It is aimed towards customer delight through highest quality through defect free manufacturing.
Focus is on eliminating non-conformances in a systematic manner, much like Focused
Improvement. We gain understanding of what parts of the equipment affect product quality and
begin to eliminate current quality concerns, then move to potential quality concerns. Transition is
from reactive to proactive (Quality Control to Quality Assurance).
QM activities is to set equipment conditions that preclude quality defects, based on the basic
concept of maintaining perfect equipment to maintain perfect quality of products. The condition
are checked and measure in time series to very that measure values are within standard values to
prevent defects. The transition of measured values is watched to predict possibilities of defects
occurring and to take counter measures before hand.
Policy :
1. Defect free conditions and control of equipments.
2. QM activities to support quality assurance.
3. Focus of prevention of defects at source
4. Focus on poka-yoke. ( fool proof system )
5. In-line detection and segregation of defects.
6. Effective implementation of operator quality assurance.
Target :
1. Achieve and sustain customer complaints at zero
2. Reduce in-process defects by 50 %
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3. Reduce cost of quality by 50 %.

Data requirements :
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Quality defects are classified as customer end defects and in house defects. For customer-end
data, we have to get data on
1. Customer end line rejection
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In-house, data include data related to products and data related to process
Data related to product :
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1. Product wise defects
2. Severity of the defect and its contribution - major/minor

3. Location of the defect with reference to the layout
4. Magnitude and frequency of its occurrence at each stage of measurement
5. Occurrence trend in beginning and the end of each production/process/changes. (Like
pattern change, ladle/furnace lining etc.)
6. Occurrence trend with respect to restoration of breakdown/modifications/periodical
replacement of quality components.
Data related to processes:
1. The operating condition for individual sub-process related to men, method, material and
machine.
2. The standard settings/conditions of the sub-process

3. The actual record of the settings/conditions during the defect occurrence.
PILLAR 6 - TRAINING :
It is aimed to have multi-skilled revitalized employees whose morale is high and who has eager
to come to work and perform all required functions effectively and independently. Education is
given to operators to upgrade their skill. It is not sufficient know only "Know-How" by they
should also learn "Know-why". By experience they gain, "Know-How" to overcome a problem
what to be done. This they do without knowing the root cause of the problem and why they are
doing so. Hence it become necessary to train them on knowing "Know-why". The employees
should be trained to achieve the four phases of skill. The goal is to create a factory full of
experts. The different phase of skills are
Phase 1 : Do not know.
Phase 2 : Know the theory but cannot do.
Phase 3 : Can do but cannot teach
Phase 4 : Can do and also teach.
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Policy :
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1. Focus on improvement of knowledge, skills and techniques.
2. Creating a training environment for self learning based on felt needs.
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4. Training to remove employee fatigue and make work enjoyable.
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Target :
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1. Achieve and sustain downtime due to want men at zero on critical machines.
2. Achieve and sustain zero losses due to lack of knowledge / skills / techniques
3. Aim for 100 % participation in suggestion scheme.
Steps in Educating and training activities :
1. Setting policies and priorities and checking present status of education and training.
2. Establish of training system for operation and maintenance skill up gradation.
3. Training the employees for upgrading the operation and maintenance skills.
4. Preparation of training calendar.
5. Kick-off of the system for training.
6. Evaluation of activities and study of future approach.
PILLAR 7 - OFFICE TPM :
Office TPM should be started after activating four other pillars of TPM (JH, KK, QM, PM).
Office TPM must be followed to improve productivity, efficiency in the administrative functions
and identify and eliminate losses. This includes analyzing processes and procedures towards
increased office automation. Office TPM addresses twelve major losses. They are
1. Processing loss
2. Cost loss including in areas such as procurement, accounts, marketing, sales leading to
high inventories
3. Communication loss
4. Idle loss
5. Set-up loss
6. Accuracy loss
7. Office equipment breakdown
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8. Communication channel breakdown, telephone and fax lines

9. Time spent on retrieval of information
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10. Non availability of correct on line stock status

11. Customer complaints due to logistics
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12. Expenses on emergency dispatches/purchases
To support functions e.g. Head of Finance, MIS, Purchase etc should be heading the subcommittee. Members representing all support functions and people from Production & Quality
should be included in sub committee. TPM co-ordinate plans and guides the sub committee
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Failure Mode and Effective Analysis(FMEA) is a systematic tool for identifying:

effects or consequences of a potential product or process failure.
Methods to eliminate or reduce the chance of a failure occurring.
FMEA generates a living document that can be used to anticipate and prevent failures
from occurring.
o
o
o
o
o
o
o
o
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Basic and Secondary Functions - verb~noun

descriptions of what product (process) does.
Basic Function: ingress to and egress from vehicle
Secondary functions - protect occupant from noise
Failure Mode - physical description of a failure.
noise enters at door-to-roof interface
Failure Effects - impact of failure on people,
equipment
driver dissatisfaction.
o Failure Cause - refers to cause of the failure.

o insufficient door seal.
Severity is a rating corresponding to the seriousness of an effect of a
potential failure mode. (scale: 1-10. 1: no effect on output, 5:
moderate effect, 8: serious effect, 10: hazardous effect)
Occurrence is a rating corresponding to the rate at which a first level
cause and its resultant failure mode will occur over the design life of
the system, over the design life of the product, or before any additional
process controls are applied. (scale: 1-10. 1: failure unlikely, 5:
occasional failure, 8: high # of failures likely, 10: failures certain)
Detection is a rating corresponding to the likelihood that the detection
methods or current controls will detect the potential failure mode
before the product is released for production for design, or for process
before it leaves the production facility. (scale: 1-10. 1: will detect
failure, 5: might detect failure, 10: almost certain not to detect failures)
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Analysis Techniques for Quality Costs:
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i. Trend Analysis
ii. Pareto Analysis
The objectives of Performance measures
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i. Establish baseline measures and reveal trends.
ii. Determine which processes need to be improved.
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iii. Indicate process gains and losses.
iv. Compare goals with actual performance.
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v. Provide information for individual and team evaluation.

vi. Provide information to make informed decisions.
vii. Determine the overall performance of the organization.
Quality improvement teams focus on . . .

In establishing quality improvement teams, a smaller company might assign one quality
improvement team. Larger firms might assign several, possibly with one quality lead team as a
guide for the other teams. Areas where quality improvement teams could begin investigating for
possible improvement are:
Increased Employee Value
Informed Employees
Technical Training
Quality Training
Employee Suggestions
Employee Participation
Higher Quality of Artistry
Personal Development
Good QIT member qualities are . . .
Representatives who are selected to be quality-lead team members should possess the following
attributes:
commitment to quality, customer satisfaction, and the success of the organization
good communication and interpersonal skills
a big picture view of the organization and of the industry
a strong commitment to learning and change
representation of a different area and level of the organization
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They are statistical methods developed by Genichi Taguchi to improve the quality of products.
Where as statisticians before him focused on improving the mean outcome of a process, Taguchi
recognized that in an industrial process it is vital to produce a product on target , and that the
variation around the mean caused poor manufactured quality. For example, car windshields that
have the target average mean are useless if they each vary significantly from the target
specifications.
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What are the losses to society from poor quality?
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Taguchi's key argument was that the cost of poor quality goes beyond direct costs to the
manufacturer such as reworking or waste costs. Traditionally manufacturers have considered
only the costs of quality up to the point of shipping out the product. Taguchi aims to quantify
costs over the lifetime of the product. Long term costs to the manufacturer would include brand
reputation and loss of customer satisfaction leading to declining market share. Other costs to the
consumer would include costs from low durability, difficulty interfacing with other parts, or the
need to build in safety margins.
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Great, so what is the actual loss function?

Think for a moment about how the costs of quality would vary with the products deviation on
either side of the mean. Now if you were to plot the costs versus the diameter of a nut, for
example, you would have a quadratic function, with a minimum of zero at the target diameter.
We expect therefore that the loss (L) will be a quadratic function of the variance (, or standard
deviation) from the target (m). The squared-error loss function has been in use since the 1930's,
but Taguchi modified the function to represent total losses. Next we will walk though the
derivation of the Taguchi Loss Function.
Loss function for one piece of product:
Where:
L = Loss in Dollars
y = Quality Characteristic (diameter, concentration, etc)
m = Target Value for y
k = Constant (defined below)
The cost of the counter measure, or action taken by the customer to account for a defective
product at either end of the specification range, Ao, is found by substituting y = m + 0 into the
loss function:
Now we can solve for the constant k,
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Since we are not usually concerned with only one piece of product, the loss function for multiple
units is
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The process capability index (Cp) is used to forecast the quality level of non-defective products
that will be shipped out. The Cp has been used in traditional quality control and is defined rather
abstractly as:
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where
represents the tolerance of the product.
Substituting k into the loss function and then rearranging in terms of Cp,
Taguchi Loss Function:
The Taguchi quality loss function is a way to assess economic loss from a deviation in quality
without having to develop the unique function for each quality characteristic. As a function of
the traditionally used process capability index, it also puts this unitless value into monetary units.
Quality Loss Function for Various Quality Characteristics

There are three characteristics used to define the quality loss function:
1. Nominalthe-Best Characteristic
2. Smaller-the-Better Characteristic
3. Larger-the-Better Characteristic
Each of these characteristic types is defined by a different set of equations, which is different
from the general form of the loss function equation.
NominalDefined upper and lower boundries
For a nominal characteristic, there is a defined target value for the product which has to be
achieved. There is a specified upper and lower limit, with the target specification being the
middle point. Quality is in this case is defined in terms of deviation from the target value. An
example of this characteristic is the thickness of a windshield in a car.
The equation used to describe the loss function of one unit of product:
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Where:
L = Loss in Dollars
y = Output Value
m = Target Value of Output
k = Proportionality Constant
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The proportionality constant (k) for nominal-the-best characteristics can be defined as:
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Where:
A0 = Consumer Loss (in Dollars)
0 = Maximum Deviation from Target Allowed by Consumer
When there is more than one piece of product the following form of the loss function is used:
= Mean Squared Deviation
A graphical representation of the Nominal Characteristic is shown below. As the output value (y)
deviates from the target value (m) increasing the mean squared deviation, the loss (L) increases.
There is no loss when the output value is equal to the target value (y = m).
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Smaller-the- Better
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In the case of Smaller-the-Better characteristic, the ideal target value is defined as zero. An
example of this characteristic is minimization of heat losses in a heat exchanger. Minimizing this
characteristic as much as possible would produce a more desirable product.
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Where:
y = Output Value
The proportionality constant (k) for the Smaller-the-Better characteristic can be determined as
follows:
A0 = Consumer Loss (in Dollars)

y0 = Maximum Consumer Tolerated Output Value
A graphical representation of the Smaller-the-Better characteristic is below. The loss is
minimized as the output value is minimized.
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Larger-the-Better
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The Largerthe-Better characteristic is just the opposite of the Smaller-the-Better characteristc.

For this characteristic type, it is preferred to maximize the result, and the ideal target value is
infinity. An example of this characteristic is maximizing the product yield from a process.
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Where:
y0 = Minimum Consumer Tolerated Output Value
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The proportionality constant (k) for the Larger-the-Better characteristic can be calculated by
using the equation given for the Smaller-the-Better proportionality constant. The only difference
between the two is the deffinition of y0.
A graphical representation of the Larger-the-Better characteristic is shown below. This
characteristic is the opposite of the Smaller-the-Better characteristic, as the loss is minimized as
the output value is maximized.
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Specifying Tolerances for a Process
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A manufacturer is responsible for only shipping products that meet certain specifications.
Products that do not meet these determined specifications are defective and cannot be shipped for
sale, resulting in a loss to the company. In aiming to meet these specifications, manufacturers
have a determined level of tolerance for deviation from the desired target specification. The
problem that often occurs is products that barely meet specifications are shipped and fail after
customer purchase. This causes negative feedback from customers, which results in losses to the
manufacturer and ultimately society. The standard to fix this problem is to tighten up the
tolerances. More stringent tolerances would result in fewer products failing on customers,
reducing losses in the market, but they would also result in increased costs to manufacturers.
Before Taguchi, there was no set method for determining optimal tolerances for a given process.
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Since it is very difficult to quantify the loss to society for a defective product after customer
purchase, Taguchi predicts the quality level. The quality loss function is the basis for
determining tolerances for a process. In quality engineering, tolerance is defined as the deviation
from the target, not the deviation between products. Taguchi's method determines tolerances that
aim for a balance between losses to the manufacturer and the customer. To do determine these
tolerances, the quality loss function can be used to determine how much it costs the manufacturer
to fix the defective product before shippment, and compare that value to the cost that the
defective product would have on the customer (society).
Worked out Example 1
Suppose you are manufacturing green paint. To determine a specification for the pigment, you
must determine both a functional tolerance and customer loss. The functional tolerance, 0 is a
value for every product characteristic at which 50% of customers view the product as defective.
The customer loss, A0, is the average loss occuring at this point. Your target is 200g of pigment
in each gallon of paint. The average cost to the consumer, HomePainto, is $10 per gallon from
returns or adjusting the pigment. The paint becomes unsatisfactory if it is out of the range
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Calculate the loss imparted to society from a gallon of paint with only 185g of pigment.
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dollars/ gallon of paint
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This figure is a rough approximation of the cost imparted to society from poor quality.
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Worked out Example 2
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Expanding on the first paint example, lets decide what the manufacturing tolerance should be.
The manufacturing tolerance is the economic break-even point for reworking scrap. Suppose the
off-target paint can be adjusted at the end of the line for $1 a gallon. At what pigment level,
should the manufacturer spend the $1 to adjust the paint?
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The manufacturing tolerance is determined by setting L = $1.

dollars/ gallon of paint
As long as the paint is within

of pigment, the factory should not spend $1 to
adjust the pigment at the end of the line , because the loss without the rework will be less than
$1. The manufacturing tolerance represents a break-even point between the manufacturer and the
consumer and sets limits for shipping the product. If the paint manufacturer ships the product
from example 1 with 185g of pigment, they are saving 1$ of reworking costs but imparting a cost
of $22.50 on society. These additional costs will surface through loss of customer satisfaction
and thus brand reputation, loss of marketshare and returned products.
Multiple Choice Question 1
How do Taguchi's methods differ from traditional ways of calculating losses due to poor quality?
A) They average losses over a 12 month period of time
B) They include not only losses to the manufacturer up to the point of shipping, but also losses to
society
C) They put the losses in Yen instead of Dollars
D) They calculate the cost per product
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UNIT V QUALITY SYSTEMS 9
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Need for ISO 9000- ISO 9000-2000 Quality System Elements, Documentation, Quality
auditing- QS 9000 ISO 14000 Concepts, Requirements and Benefits Case studies
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of TQM implementation in manufacturing and service sectors including IT.
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NEED FOR ISO

9001:2008 QMS
CERTIFICATION
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Certification to ISO 9001:2008 QMS increases the Customer's confidence in

Supplier's Quality and Delivery Commitments.
ISO 9001:2008 QMS is universally recogonised and hence helps in
penetrating New Markets Globally.
Registration can improve service performance and reduce uncertainty.
Regular assessments ensure the organization continually uses, monitors and
improves their processes.
Worldwide Recogination.
Clearity in Roles, Responsibilities and Authorities among all.
Employee involvement and thus commitment.
Improved Quality awareness throughtout the organisation.
LATEST
NEWS
Neda
Telecommunications,
Kabul, Afghanistan
has achieved ISO
9001 : 2008 Q M S
Certification. With
this, Neda
Telecommunications
becomes the first
company in
Afghanistan to
achieve the
certification to 2008
version of ISO 9001
Quality Management
System Standard.
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Salwan Public
School, Mayur
Vihar, New Delhi,
India has achieved
ISO 9001:2008 QMS
Certification.
District Jail, Rohini,
New Delhi, Delhi,
India has achieved
ISO 9001:2008 QMS
Certification.
Onicra Credit Rating
Agency of India Ltd.,
India has achieved
ISO/IEC 27001
ISMS Certification.
Central Jail No. 1,
Tihar, New Delhi,
Delhi, India has
achieved ISO 9001 :
2000 QMS
Certification.
Drug De-Addiction
Centre at Central Jail
Hospital, Central Jail
No. 3, Tihar, New
Delhi, Delhi, India
has achieved ISO
9001:2000 QMS
Certification.
Central Public
Relation Office,
Tihar Jail, New
Delhi, Delhi, India
has achieved ISO
9001:2000 QMS
Certification.
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District Passport
Center, Asaf Ali
Road, New Delhi,
India has achieved
ISO 9001:2000 QMS
Certification.
Delhi Traffic Police
(Notice Branch),
New Delhi, India has
achieved ISO
9001:2000 QMS
Certification.
Recruitment Cell
working under 4th
Battalion of Delhi
Armed Police, Delhi,
India has achieved
ISO 9001:2000 QMS
Certification.
The Orchid (Hotel),
New Delhi, India has
achieved ISO
14001:2004 EMS
Certification.
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ISO 9000
ISO 9000 is a series of quality management systems standards created by the International
Organization for Standardization (ISO), a federation of 132 national standards bodies. The ISO
9000 quality management systems (QMS) standards are not specific to products or services, but
apply to the processes that create them. The standards are generic in nature so that they can be
used by manufacturing and service industries anywhere in the world. First released in 1987 and
revised in a limited manner in 1994, they underwent a major overhaul in 2000.
The most important revised standard, ISO 9001:2000, uses a simple process-based structure,
which is more generic than the old 20-element structure of ISO 9001:1994, is consistent with the
plan-do-check improvement cycle used in the ISO 14000 environmental management systems
standards, and adopts the process management structure widely used in business today. ISO
9001:2000 addresses an organizations quality management system requirements, in order to
demonstrate its capability to meet customer requirements, and applies to all generic product
categories, such as hardware, software, processed materials and services.
ISO 9001:2000 registration gives the organization the benefit of an objectively evaluated and
enforced quality management system. It is a tangible expression of a firms commitment to
quality that is internationally understood and accepted. ISO 9001:2000 registration is carried out
by registrars, accredited organizations that review the organizations quality manual and other
documentation to ensure that they meet the standard, and audit the firms processes to ensure that
the quality management system described in the documentation is in place and is effective.
ISO 14000
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ISO 14000, released in 1996, is a global series of environmental management systems (EMS)
standards, providing a framework for organizations to demonstrate their commitment to
environmental responsibility.
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An EMS enables an organization to control the environmental aspects and impacts of its
activities, products and services by establishing targets and objectives related to identified
environmental management goals. Once implemented, an EMS will improve compliance with
legislative and regulatory requirements, reduce exposure to liability, prevent pollution, reduce
waste and create a more positive public image.
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Organizations that register to ISO 14001, the most important of the ISO 14000 standards,
demonstrate sound environmental management practices, are able to prevent environmental
disasters and government sanctions, and experience fewer regulatory audits by correcting
environmental problems. ISO 14000 supporting documents include environmental labeling, lifecycle assessment, environmental aspects in product standards, and environmental performance
evaluation.
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ISO/TS 16949
ISO/TS 16949 is the international automotive quality management systems (QMS) standard,
released in 1999 and revised in 2002 to align with ISO 9001:2000. This standard combines ISO
9001:2000 with automotive sector-specific requirements from the American QS-9000, German
VDA 6.1, French EAQF and Italian AVSQ quality standards. British and Japanese automakers
also contributed to its development.
ISO/TS 16949 applies to all internal and external suppliers of production or service parts;
production materials; and heat treating, painting, plating or other finishing services directly
relating to original equipment manufacturer (OEM) customers. International automotive
suppliers no longer have to satisfy multiple national automotive quality standards, which were
often contradictory and led to redundant audits.
Each participating automaker has customer-specific requirements for unique and specific product
needs that could not be harmonized. Applicable customer-specific requirements are audited as
part of ISO/TS 16949 registration and the particular automaker(s) are listed on the suppliers
registration certificate.
TE Supplement
The TE (Tooling and Equipment) Supplement to QS-9000, released in 1996, sets forth quality
system requirements for Big Three tooling and equipment suppliers.
Developed by the Chrysler/Ford/General Motors Supplier Requirements Task Force, it fully
embraces ISO 9001:1994, includes many of the QS-9000 sector-specific requirements, and
contains sector- and customer-specific requirements for manufacturers of tools, dies, molds,
plating, robotics and assembly, along with some coolants and lubricants.
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Big Three tooling and equipment suppliers must conform to the TE Supplement. Chrysler has
mandated that its tooling and equipment suppliers register to this standard.
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VDA 6.1
VDA 6.1, released in 1991, is the quality system standard of the German automobile industry. It
was developed by the Verbrand der Automobilindustrie e.V. (VDA), with input from major
manufacturers and suppliers.
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The majority of VDA 6.1 is based on the ISO 9000 quality management systems standards, but is
organized into a distinct set of elements in two areas: Management, and Product and Process.
These elements incorporate portions of the ISO 9001:1994 quality system model and the ISO
9004-1 quality system guidelines, along with automotive sector-specific requirements.
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VDA 6.1 has also incorporated requirements from QS-9000 and the French EAQF automotive
quality standard. In addition, suppliers with design responsibility must comply with German
Road Traffic Law.
This standard affects companies that manufacture or supply components and other products to
such German automotive manufacturers as Volkswagen, Audi, Mercedes-Benz, BMW, Porsche,
Adam Opel and Ford-Were.
The Volkswagen Group, consisting of Volkswagen, Audi, Seat and Skoda, requires all of its
production and service parts suppliers to register to VDA 6.1.
OHSAS 18001
OHSAS 18001, developed by a group of European standards bodies, is an occupational health

and management systems (OHSMS) standard designed to create a safer workplace. OHSAS
18001 contains requirements in such areas as planning, risk assessment and hazard identification,
consultation and communication, operational control, emergency preparedness and response, and
accidents and incidents.
OHSAS 18001 is ideal for a company that wants to make occupational health and safety a
priority; reduce liability, workers compensation and medical treatment costs; eliminate or
minimize workplace injuries, and increase employee productivity; and decrease absenteeism and
lost work hours by preventing injuries and accidents.
Debate over the International Organization for Standardization (ISO) developing an OHSMS
standard continues. ISO may revisit the matter in the future, with OHSAS 18001 offering a
possible framework for such a standard.
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TQM in IT industries :
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Total Quality Management is a set of philosophy that act like a principles of management. It
has been adopted by many big and small business organizations and government bodies to
perform their bjectives. Within the TQM principles, it deal with elements like Management
Commitment, Customer Satisfaction, Process management. Employee involvement, etc that
are aimed to manage your business in a more holistic manner
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With the same token, the Malcolm Baldrige Criteria is a set of guidelines written and used as a
yardstick to assess if an organization is able to meet a business excellence level. The Baldrige
Criteria has seven categories which of its own clearly states its objectives and guidelines. The
seven categories are listed below:-
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1.
2.
3.
4.
5.
6.
7.
Leadership
Strategic Planning
Customer and Market Focus
Information and Data Analysis
Human Resource Management and Development
Process Management
Business Results
Take a closer look and you may notice that the Baldrige Criteria are build upon a set of values
and concepts as opposed to how TQM Principles are used in Total Quality
Management. There are eleven values and concepts in the Baldrige Criteria listed below:1. Visionary Leadership
2. Customer-Driven Excellence
3. Organizational and Personal Learning
4. Valuing Employees and Partners
5. Agility
6. Focus on the Future
7. Managing for Innovation
8. Management by Fact
9. Public Responsibility and Citizenship
10. Focus on Results and Creating Value
11. Systems Perspective
To ensure the application of these values and concepts, they are embodied in the detail Baldrige
Criteria categories mentioned above. Each category has set up its own criteria to the highest
standard of Business Excellence. While the values and concepts remain quite unchanged over the
years, the detail criteria for each category has changed every year. The objective for a yearly
changes to the criteria is to ensure it is reviewed and kept current to the business and
enviornment changes and needs.
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Hazard Analysis of Critical Control Points (HACCP)

Hazard Analysis of Critical Control Points (HACCP), enforced by such agencies as the US
Department of Agriculture's Food and Safety Inspection Service (FSIS) and the Food and Drug
Administration (FDA), is a scientific process control system for eliminating contaminants at
critical areas in the food production and distribution process.
HACCP helps to prevent, as close to 100 percent as possible, harmful contamination in the food
supply. To ensure safer food, HACCP requires the following seven principles to be followed:
Conduct a hazard analysis

Identify critical control points (CCPs)
Establish critical limits for CCPs
Establish monitoring procedures
Establish corrective actions
Establish verification procedures
Establish record keeping procedures
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HACCP requirements, endorsed by the United Nations Codex Alimentarius, European Union,
Canada, Australia, New Zealand and Japan, apply to meat, seafood and poultry plants; grocery
stores; restaurants; and other food processing and handling facilities.
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AS9100
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AS9100, released in 1999 and revised in 2001 to align with ISO 9001:2000, is the international
ISO 9000 derivative for suppliers to the aerospace industry. AS9100 takes the ISO 9001:2000
quality management systems standard covering every step and department of the manufacturing
process, and inserts aerospace industry-specific requirements. AS9100 also addresses flowdown
of aerospace prime contractors quality management system requirements to suppliers and their
subcontractors. Flowdown includes specifications for parts or assembly designs, characteristics,
inspections, and other process functions and product features.
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The prime aerospace contractors consider AS9100 a major step in the history of quality
management in the aerospace field. Government agencies, such as the Defense Department and
the Federal Aviation Administration (FAA), also support AS9100, though suppliers still have to
meet additional federal requirements. The major difference is a drop in compliance costs and
time for suppliers, due to the elimination of multiple audited governmental standards. This
industry-generated standard also takes the place of programs the government has dropped.
AS9100 is designed to reduce defects in the supplier chain, continually improve quality and
boost customer satisfaction. By becoming registered to AS9100 and ISO 9000, companies
dealing with aerospace prime contractors and the government enjoy a competitive advantage.
The regulatory burden is lightened, so suppliers can spend more time improving the
manufacturing process in an industry that puts a top priority on safety and quality.
CE Marking
The CE Marking is required to sell any product manufactured or distributed under European
Union (EU) New Approach Directives in the European Economic Area (EEA). The EEA
consists of the 27-nation EU. In addition, Switzerland, although part of European Free Trade
Association (EFTA), is not part of EEA. The other 3 non-EU countries in EFTA, Liechtenstein,
Iceland and Norway, are members of the EEA.
The New Approach Directives, designed to eliminate technical barriers to trade in Europe, set
product safety technical requirements. The most important of these apply to medical devices.
Other directives include low voltage, simple pressure vessels, toys, construction products,
electromagnetic compatibility, machinery, personal protection equipment, telecom terminal
equipment, boilers, explosives and recreational craft.
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The CE Marking is affixed to products after they are successfully tested for conformity to
applicable directives.
Current Good Manufacturing Practices (CGMP)
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Manufacturers of medical devices that plan to distribute products in the U.S. are required to
adhere to Food and Drug Administration (FDA) Current Good Manufacturing Practices
(CGMP), under which the company must establish a quality assurance program and its medical
devices must meet specifications and controls to guarantee they are safe and effective for
intended use.
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CGMP covers quality assurance programs and organization, buildings, equipment, components,
production and process controls, packaging and label control, distribution and installation, device
evaluation and records.
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The FDA monitors medical device problem data and inspects the operations and records of
device manufacturers to determine CGMP quality assurance compliance.
ISO/IEC 17025
ISO/IEC 17025, released in 1999, contains all the requirements that testing and calibration
laboratories must meet to demonstrate that they operate quality management systems (QMS), are
technically competent and can generate technically valid results. All ISO 9000 requirements that
are relevant to the scope of testing and calibration laboratory QMS have been incorporated into
ISO/IEC 17025, along with technical competency requirements.
ISO/IEC 17025 covers such matters as quality system; personnel; document control; review of
requests, tenders and contracts; subcontracting of tests and calibrations; purchasing services and
supplies; services to the client; control of records; internal audits; accommodation and
environmental conditions; test and calibration methods and method validation; equipment;
measurement traceability; sampling; handling of test and calibration items; and reporting the
results.
ISO/IEC 17025 accreditation is a more thorough process than ISO 9000 registration because it
recognizes a laboratorys competence to produce technically valid results as well as its QMS
conformance. When a laboratory is part of a larger facility, ISO/IEC 17025 accreditation can
occur at the same time as ISO 9000, QS-9000 or ISO/TS 16949 registration if the auditor is
working for both an accreditation body and a registrar.
BS 7799
BS 7799, developed by the British Standards Institution (BSI), provides a comprehensive set of
information security management systems (ISMS) controls, which apply to information systems
used by organizations in industry and commerce, including information processing technology in
the area of networks and communications.
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There are two parts to the standard. BS 7799-2 is a specification standard that sets ISMS
requirements that can be implemented, audited and used for registration. BS 7799-1 is a guidance
document that is the basis for the international information security guidance standard, ISO/IEC
17799.
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The standard covers such areas as document control, security policy and organization, asset
classification and control, physical and environmental security, communications and operations
management, access control and compliance with legal requirements. Organizations seeking BS
7799 registration must assess security risks, select controls and develop guidelines.
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TL 9000
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TL 9000, released in 1999 and revised in 2001 to align with ISO 9001:2000, is the
telecommunications industry derivative of ISO 9000. This standard harmonizes
telecommunications quality management system (QMS) requirements for the design,
development, production, delivery, installation and maintenance of hardware, software products,
and services. Conformance to TL 9000 decreases time to market and improves the total cost of
ownership throughout the supply chain.
TL 9000s structure contains five levels of QMS requirements and measurements. They are ISO
9001:2000; common telecommunications industry quality system requirements (QSRs);
hardware, software and services specific QSRs; common telecommunications industry
measurements; and hardware, software and services specific quality system measurements.
TL 9000s telecommunications sector-specific QSRs are divided into six categories and marked
accordingly: common (C), hardware (H), software (S), services (V), hardware and software
(HS), and hardware and services (HV). There are no services and software (VS) elements. A
supplier is only required to implement the additional elements that fit its scope of operations.
Only a hardware and software company that offers a service must implement all sector-specific
requirements.
TL 9000 breaks ground by establishing cost and performance based measurements that measure
the reliability and quality performance of hardware, software and services. These performance
measurement tools are important from the customers point of view and include hardware return
rates, system outages, number of problem reports, software update quality, on-time delivery,
invoice accuracy, and the efficiency and level of success of the suppliers business processes and
activities.
TL 9000 registration may encompass an entire company, an organizational unit, a combination
of units, several facilities, an individual facility, or a limited and defined product line. The
registration scope may be for hardware, software, services or any combination thereof.
SA 8000
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Social Accountability (SA) 8000, released in 1997, is the first international standard dealing with
the workplace environment. It requires employers to pay wages sufficient to meet workers' basic
needs, provide a safe working environment, not employ child or forced labor, and not force
employees to regularly work more than 48 hours a week. Other SA 8000 elements address health
issues, freedom of association, discrimination, disciplinary practices and management.
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Developed by the nonprofit Council on Economic Priorities Accreditation Agency (CEPAA),

with the assistance of a wide range of business, industry, labor, human rights, certification and
audit experts, and based on several existing international human rights standards, including the
United Nations Universal Declaration of Human Rights and the Convention on the Rights of the
Child, SA 8000 provides a means to improve working conditions and meet the social challenges
of economic globalization.
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SA 8000 certification enables a company to project a positive image and good reputation to
clients, employees, suppliers, shareholders and consumers. This standard gives the general public
confidence in the ethical production of the products they buy, contains mechanisms for
continuous improvement and provides a marketing edge with better labor practices. Enforcing
humane conditions in factories may also lead to higher quality products on the market.
ISO/IEC 15408
ISO/IEC 15408, released in 1999, is the first international information technology security
evaluation criteria standard, defining Common Criteria (CC) used to evaluate security properties
of information technology (IT) products and systems, such as operating systems, computer
networks, distributed systems, applications and other hardware, firmware and software.
These requirements apply to both security functions of IT products and systems, and assurance
measures used during security evaluation and validation. The CC can also be used as a guide by
IT consumers, developers and evaluators in developing or procuring products or systems with IT
security functions.
During a security evaluation or validation, an IT product or system is known as a Target of

Evaluation (TOE). A set of security requirements and specifications used to evaluate or validate
a TOE is a developer Security Target (ST). An implementation-independent set of security
requirements for a category of TOEs that meet specific consumer needs is a user Protection
Profile (PP). Evaluation and validation is an assessment of a PP, ST or TOE against CC security
requirements.
The ISO/IEC 15408 CC is implemented in the U.S. by the National Information Assurance
Partnership (NIAP) Common Criteria Evaluation and Validation Scheme (CCEVS), which sets
standards; monitors the quality of evaluations; and assures that the Common Evaluation
Methodology (CEM), which addresses evaluation methodology and procedures, is used
consistently across government-accredited, product testing and evaluation facilities.
Information technology security evaluations are conducted by Common Criteria Testing
Laboratories (CCTLs), commercial testing laboratories accredited by National Voluntary
Laboratory Accreditation Program (NVLAP), approved by the NIAP Validation Body and
placed on the NIAP Approved Laboratories List
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Supply Chain Management
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Supply Chain Management recognizes that competition is now across supply chains, not
individual companies. A supply chain is the network of companies linked together in supplier to
customer relationships across a product life cycle from raw material to final consumption.
Supply Chain Management integrates every aspect of product development and design,
producing competitive advantages throughout the product life cycle.
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Supply Chain Management optimizes and synchronizes material, process, information and cash
flow from raw material to final consumption, while driving out excess inventory and unnecessary
costs. The right product gets delivered to the right place, at the right time and at the right price.
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Any organization in the supply chain network can initiate a supply chain program and realize
benefits. However, the closer a company is to the final customer, the better it is positioned to
lead a Supply Chain Management program.
Six Sigma
Six Sigma is a statistically oriented approach to process improvement, designed to reach a
quality level of less than 3.4 Defects Per Million Opportunities (DPMO) for Critical-To-Quality
(CTQ) characteristics in a manufacturing or service process.
Achieving this Six Sigma level reduces the cost of defects from 20-30 percent to 1 percent of
revenues. There is a reduced need for testing and inspection, costs go down, cycle time decreases
and customer satisfaction goes up as companies are able to deliver the highest quality product, on
time and at the right price.
Six Sigma uses a variety of tools, including Statistical Process Control (SPC), Total Quality
Management (TQM) and Design of Experiments (DOE). It can be coordinated with other major
initiatives and systems, such as new product development, Materials Requirement Planning
(MRP)
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UNIT I
PART A
1. Define quality.
2. List the barriers of TQM
3. What are the dimensions of quality?

4. Name the criteria for manufacturing organization.
5. Compare manufacturing and service organization
6. Define the concept of Deming philosophy
7. Define TQM.
8. Factors that helps in improving the quality.
9. What is fitness of use?
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10. What is meant by support service?
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PART-B
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1. Discuss in detail about the basic concepts of quality.
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2. Explain the dimensions of total quality management.
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3. What are terms that affects quality in manufacturing organization
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4. Explain in detail about the need for TQM

5. Describe the barriers of TQM.
UNIT II
PART-A
1. What is quality planning?
2. Differentiate customer satisfaction and retention.
3. Define Employee involvement.

4. What is meant by empowerment?
5. Differentiate recognition and reward.
6. Define 5s concept.
7. How will you measure the supplier rating?
8. How will you retain the customer?
9. Advantages of continuous process.
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10. What is meant by performance appraisal?

PART-B
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1. Describe in detail about 5s Kaizen concepts with example.
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2. How to achieve the best quality through the customer?
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3. Explain the concept of PDSA cycle.
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4. Describe in detail about employee benefits?

5. Write shortnotes on a. Leadership b. Quality statements.
UNIT - III
PART-A
1. List the seven traditional tools.
2. What is meant by six sigma?
3. Define benchmark.
4. Define Affinity diagram
5. Draw Pareto diagram
6. Name the terms in benchmarking process.
7. What is meant by FMEA?
8. List the reasons to benchmark?
9. Differentiate single sourcing and multiple sourcing.
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10. Name any 3 methods in six sigma concepts.

PART-B
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1. Explain the various methods of six sigma with example.
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2. Describe the seven traditional tools of TQM.
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3. What is meant by benchmark process? Explain.
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4. Discuss the various types of diagrams that are used to improve the quality?
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5. Explain how the management tools are used in manufacturing industry?
UNIT - IV
PART-A
1. List the seven traditional tools.
2. What is meant by QFD?
3. Define cost of quality

4. List the performance measures.
5. What is meant by Taguchi Quality loss function?
6. List the points for improvement needs.
7. What is TPM?
8. Give three characteristics used to define the quality loss function
9. What are the requirements of improvement needs.
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10. Use of Taguchi quality loss function.

PART - B
1.
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3.
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Explain Quality Loss Function for Various Quality Characteristics with example.
Describe the concepts of QFD.
Explain the concepts of TPM.
How to measure the cost of quality? Explain with neat diagram.
Write shortnotes on a. traditional tools b. improvement needs
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UNIT-V
1. Why ISO 9000 is needed?
2. Define ISO9000-2000.
3. What is ISO 14000?
4. List 4 benefits of ISO 9000.
5. Advantages of ISO14000.
6. List some IT companies which has ISO standards.
7. What are the requirements for ISO?
8. What is meant by auditing?
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9. Define hazard analysis.

10. What is meant by Malcolm Baldrige Criteria?
PART-B
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1. Describe in detail about ISO9000 and ISO 14000.
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2. Why auditing is required to improve the quality? Explain.
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3. Explain the concept of Malcome Bridge criteria.
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4. Describe in detail about the concept of hazard analysis?

Explain the concepts, requirements and advantages of ISO standards.

TQM Notes

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Total Quality Management

For example, although you probably have an opinion as to which manufacturer of

Need for Quality Management :

TQM in Large-scale industries:

environment for employees.

performance to standards.Others view it as meeting the customers needs or satisfying

Dimensions of Manufacturing and Service quality :

common quality definition in manufacturing is conformance, which is the degree to which a

In contrast to manufacturing, service organizations produce a product that is intangible. Usually,

Responsiveness to customer needs

BASIC CONCEPTS OF TOTAL QUALITY MANAGEMENT :

who have shaped our understanding of quality.

CONTRIBUTIONS BY QUALITY GURUS

Build quality into a product throughout production.

term relationship based on established loyalty and trust.

Work to constantly improve quality and productivity.

Teach and institute leadership to improve all job functions.

Strive to reduce intradepartmental conflicts.

Comments on some of Dr. Deming's points:

ultimately detract from the company's effectiveness.

ties with suppliers of quality equipment.

A manager seeking to establish such an environment must:

spread profit to workers as teams, not individuals.

eliminate fear, envy, anger, and revenge from the workplace.

employ sensible methods such as rigorous on-the-job training programs.

The teachings of Dr. Deming affected a quality revolution of gargantuan significance on

Automotive Hall of Fame in 1991.

Miami University, George Washington University, the University of Colorado, Fordham

BARRIERS TO QUALITY MANAGEMENT :

An interesting was the 'Fish Philosophy'.

Five Pillars of TQM are,

7. Installation and product service.

<Strong>Fundamental factors affecting Quality: (9 Ms)

Customer satisfaction oriented benefits:

1. Improvement in product quality

Economic improvement oriented benefits:

1. Reduction in operating costs

3. Reduction in field service costs

The history of quality control is undoubtedly as old as industry itself.

into Americn Society for Quality (ASQ).

Quality Movement in India:

synergy of resources by the pioneering efforts of Confederation of Indian Industries (CII)

CII organized a first major seminar with Joseph Juran in 1987.

CII also launched the first newsletter on Quality.

certification in the year 1989.

The future thrust on quality movement in India would be based on:

Application Research (Industry and Academics)

UNIT II TQM PRINCIPLES 9

Leadership Strategic quality planning, Quality statements - Customer focus

Employee involvement Motivation, Empowerment, Team and Teamwork, Recognition

5s, Kaizen - Supplier partnership Partnering, Supplier selection, Supplier Rating.

There are seven basic steps to strategic quality planning.

Quality planning is the pre-determined activities in order to achieve conformation to the

Identify the customers

Translate those needs into our language.

functions product development, marketing, personnel, production etc.,

Categories of Quality Cost:

to transfer of the product to the customer.

c) Appraisal costs - The cost incurred in determining the degree of

d) Prevention costs - The cost incurred in keeping failure and appraisal

Traditional Quality cost model

Emerging Quality Cost Model

Higher quality doesn't mean higher costs