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Ability of a product or service to meet customer requirements Conformance to standards, both stated or implied at a given time, over a period of time and at a price the customer can afford to pay or is willing to pay

Dimensions of Quality
Performance Reliability Conformance Durability Serviceability Features Aesthetics Perceived Quality Time to serve Timeliness Completeness Consistency Courtesy Responsiveness Accuracy Convenience

Quality Evolution
Proactive Approach
Prevention Stop defects at source. Zero defects

Total Quality Management

Incorporates QC/QA activities into a company-wide system aimed at satisfying the customer. (involves all organizational functions)

Quality Assurance

Planned and systematic actions to ensure that products or services conform to company requirements

Reactive Approach
Detection Finding & Fixing mistakes
1 2

Quality Control

Operational techniques to make inspection more efficient & to reduce the costs of quality. (example: SPC) Inspect products


A quest for quality that involves everybody in the organization A philosophy that involves everyone in the organization in a continual effort to improve quality and achieve customer satisfaction

Key Philosophies in TQM

Never ending push to improve (continuous improvement or Kaizen in Japanese) Goal of customer satisfaction (meeting or exceeding customer expectations)

TQM - Definition
Process of integration of all activities, functions and processes within an organization in order to achieve continuous improvement in cost, quality, function and delivery of goods and services for customer satisfaction

Approach Management led Scope Company wide Scale Everyone is responsible for quality Philosophy Prevention and not detection Standard Right first time Control- Cost of quality Theme Ongoing improvement

Infrastructure, Practices and Tools

Infrastructure basic management systems necessary to function effectively : CR mgmt, HR mgmt,
Leadership, Process mgmt, Info. mgmt

Practices activities that occur within each element of infrastructure to achieve high performance Tools graphical and statistical methods to plan work activities, data collection and analysis etc.

Pillars of TQM

T. Q. M.
Customer Focus Process Employee Training Management & Empowerment Continuous Improvement
(through measurement and analysis)

Reduce rework activities Shorter development cycle Increased customer satisfaction

(Cost reduction) (Cost reduction) (Quality improvement)

Eight Key Elements of TQM

For a company to be successful in implementing TQM they need to concentrate on these eight key elements. These eight elements include
Ethics Integrity Trust Training Teamwork Leadership Recognition Communication.

Continuous Improvement versus Traditional Approach

Traditional Approach
Continuous improvement

Market-share focus Individuals Focus on who and why Short-term focus Status quo focus Product focus Innovation Fire fighting

Customer focus Cross-functional teams Focus on what and how Long-term focus Continuous improvement

Process improvement focus

Incremental improvements
Problem solving


Quality Gurus
W Edwards Deming Joseph Juran Philip Crosby

Shigeo Shingo Kaoru Ishikawa Yoshio Kondo Taiichi Ohno


Gurus of TQM
Walter.A.Shewhart -TQC &PDSA W.Edwards Deming- 14 Points & PDCA Joseph.M.Juran-Jurans Trilogy A.Feiganbaum-Customer requirement,CWQC,Employee Involvement, TQC.


Gurus of TQM
Kaoru Ishikawa-Disciple of Juran & Feigenbaum. TQC in Japan, SPC, Cause &Effect Diagram,QC. Philips.B.Crosby. Four AbsolutesQuality-Req, Prevention of NC,Zero Defects & Measure of NC. Taguchi.G-Loss Function.


Total Quality Models

A tentative plan and system of implementing TQM principles and practices in an organization for achieving all the known benefits of TQM. Primary purpose is to assure proper implementation of TQ practice and provide adequate system of measurement for assessing performance

Any quality system model should address the following characteristics of TQM process

Should be a systems approach Must show strong focus on customers Transparent role of management and leadership Should incorporate systems for employee participation Provide training and development of employees Usage of tools for continuous improvement and TQ practice

The various TQM models available to industry and businesses are based on Qlty Award Models like

Malcolm Baldrige National Quality Award (MBNQA), US Deming Application Prize Award, Japan European Forum for Quality Management (EFQM) Award Australian Quality Awards Canadian Awards for Business Excellence

The simplest model of TQM is shown in this diagram


The model consists of seven categories

Leadership Strategic Planning Customer & Market Focus Measurement, Analysis & Knowledge Management Workforce Focus Process Management Business Results


The model consists of nine categories

Leadership Policy and Strategy People Partnerships and Resources Processes Customer Results People Results Society Results Key Performance Results








Deming Prize
Dr. Demings teachings had an impact on the Japanese quality movement and, consequently, the Deming Prize was established in his honour in 1951.

The prize has two categories: The Deming Prize for Individuals: An annual award is

given to individuals that have made outstanding contributions to the study of TQM or statistical methods used for TQM, or to individuals that have made outstanding contributions in the dissemination of TQM; presented to an organisation that has achieved distinctive performance improvements through the application of TQM. The prize is open to organisations in all sectors - public or private, large or small, or domestic or overseas. Furthermore, a division of a company that manages its business autonomously may apply for the prize separately from the company.

The Deming Application Prize: An annual award is


Main vehicle in a TQM system for achieving highest level of performance May take any one of several forms
Enhancing value to the customer through new and improved products and services Reducing errors, defects, wastes and related costs Increasing productivity and effectiveness in the use of all resources Improving responsiveness and cycle time performance for processes like resolving customer complaints, new product introduction

Continuous improvement refers to both incremental changes and breakthrough changes Incremental small and gradual Breakthrough large and rapid


Six sigma is a business improvement approach that seeks to find and eliminate causes of defects and errors in manufacturing and service processes by focusing on outputs that are critical to customers and results in a clear financial return for the organization. Six sigma equates to at most 3.4 dpmo An ultimate stretch goal of all organizations that adopt this philosophy is to have all critical processes at a six sigma level of capability- a level of near zero defects.

Project selection for 6 sigma

Conformance problems unsatisfactory performance by a well specified system Unstructured performance problemsunsatisfactory performance by a poorly specified system Efficiency problems-unsatisfactory performance from from stakeholders (other than customer) standpoint Product design problems- designing new products to better satisfy user needs Process design problems- designing new processes or substantially revising existing processes.

Six Sigma Methodology

D Define priorities of customer with respect to quality M Measure the processes and the defects arising in the product due to the process A Analyze the process to determine the most likely causes of defects I Improve the performance of the process and remove the causes of defects C Control performance to ensure that improvements are maintained over time

Roles in Six Sigma


Represents a set of tools and methodologies used in the product development process to ensure that goods and services will meet customer needs and achieve performance objectives and that the processes used to make and deliver them achieve six sigma capability.

The activities of DFSS

Concept Development Design development Design Optimization Design verification

Concept Development:
determining product functionality based on customer requirements, technological capabilities and economic realities

Design Development:
Focuses on product and process performance issues necessary to fulfill product and service requirements in mfg or delivery

Design optimization:
Minimizing the impact of variation in production and use, creating a robust design

Design verification:
Ensuring that the production system is capable of producing within the specifications


QFD is an approach developed by the Japanese to meet customers requirements throughout the design process and also in the design of production systems. QFD is a planning process to guide the design, manufacturing and marketing of goods by integrating the voice of the customer throughout the organization.

House of quality
A set of matrixes used to relate voice of customer to a products technical requirements, component requirements, process control plans and manufacturing operations

Interrelationshi ps Technical requirements

Voice of the customer

Relationships between customer and technical requirements

Priorities of customer requirement s

Competitiv e evaluation

Priorities of technical requirements


Design FMEA
Aids in design process by identifying known and foreseeable failure modes and ranking failures according to relative impact on product Helps establish priorities based on expected failures and severity of those failures and helps find out misjudgments and errors that may have been made.

Design FMEA
Reduces development time and cost of manufacturing processes by eliminating many potential failure modes before operation of the process

In FMEA, failures are prioritized according to

how serious their consequences are (severity) how frequently they occur (occurrence) inability to detect them (detection) o The overall risk of each failure is given by Risk Priority Number (RPN) which is the product of Severity (S), Occurrence (O), and Detection (D)


Cost of quality is the amount of money a business loses because its product or service was not done right in the first place.
Cost of quality attempts to measure the costs associated with poor quality or lack of fitness for success.

Prevention costs
Quality planning costs
Salaries of individuals associated

Process control costs

Cost of analyzing production process and implementing process control plans

Information system costs

Cost to develop data requirements and measurements

Training and general management costs

Cost on internal/external training programs Clerical staff expenses Misc supplies

Appraisal costs
Test and Inspection costs
Incoming materials, work-in-process, finished goods Equipment costs and salaries

Instrument maintenance cost

Calibration and repair of instruments

Process measurement and control costs

Time spent by workers to gather and analyze quality measurements

Internal failure costs

Scrap and rework costs
Material, labour, overhead

Cost of corrective action

Time spent determining causes of failure and corrections

Downgrading costs
Revenue lost in selling product at lower price

Process failures
Unplanned machine downtime Unplanned equipment repair

A compelling story was related by a Wal-Mart customer in a letter to Fortune magazine. He had telephoned Wal-Marts headquarters to complain ab In the context of this case, explain how a company should treat its customers and customer complaints. If you are the manager of the store, how would you train front-line employees to handle customer complaints?

External failure costs

Cost due to customer complaints and returns
Rework on returned items Cancelled orders

Product recall costs and warranty claims

Cost of repair or replacement Associated administrative costs

Product liability costs

Resulting from legal actions and settlements


Taguchi Loss Function

Genichi Taguchi states that instead of constantly directing effort toward controlling a process to assure consistent quality, design the manufactured good to achieve high quality despite the variations that will occur in the production line.

Traditional Goal Post View of Conforming to Specifications

Taguchis loss function explains the economic value of reducing variation in manufacturing.

L(x) = k(x T)2


L(x) is the monetary value of the loss associated with deviating from the target, T; x is the actual value of the dimension; k is a constant

Nominal-Is-Best Taguchi Loss Function


Taguchi Methods is a statistical methods developed largely by GENICHI TAGUCHI to improve quality of manufactured goods. The philosophy of off-line quality control. Innovations in the design of experiments.

Taguchi Loss Function Definition

Taguchi defines Quality as the loss imparted by the product to society from the time the product is shipped. LOSS = Cost to operate, Failure to function, maintenance and repair cost, customer satisfaction, poor design. Product to be produced being within specification

Taguchis Vs Traditional Approach

Taguchs Traditional

When a product There is Good or Bad moves from its Target Products only as per will cause the loss Limits even if the product lies or not within Limits

Taguchis Quadratic Quality Loss Function

Quality Loss Occurs when a products deviates from target or nominal value. Deviation Grows, then Loss increases.

Taguchis U-shaped loss Function Curve.

Taguchis U-shaped loss Function Curve.

Taguchi loss Fn

Scrap or Rework Cost.


Measured characteristic LTL Nominal UTL

Formula to find Taguchis Loss Fn Taguchi uses Quadratic Equation to determine loss Curve
L (x) = k (x-T) Where L (x) = Loss Function, k = C/d = Constant of proportionality, where C Loss associated with sp limit d - Deviation of specification from target value x = Quality Features of selected product, T = Nominal Value of the product and (x-T) = Tolerance

Assume that a certain CTQ has a spec 0.500 + 0.020. an analysis of records shows that if the spec exceeds the target by 0.020 on either side, the cost of repair that needs to be incurred is Rs.50. i.e. 50 = k(0.20)2 K=125,000 The loss fn. is L (x) = 125000 (x-T)

Japanese plant variance = 2.78

US plant variance = 8.33

Expected Loss
EL(x) = k (2 + D2) 2 -variance of quality characteristic D2 - square of deviation of mean value from target D2 =(x-T) 2 K=0.16 For San Diego plant, variance was 8.33 For Japanese plant, variance was 2.78

San Diego = 0.16 x 8.33 = USD 1.33 Japanese = 0.16 x 2.78 = USD 0.44

Ability of a product to perform as expected over time

The probability that a product, equipment or system performs its intended function for a stated period of time under standard operating conditions

Four important elements

Probability Time Performance Operating conditions

Reliability measurement
Reliability is measured as the number of failures per unit time under consideration (failure rate).

Failure rate,
= Number of failures/Total unit operating hours = Number of failures/(Units tested) x (Number of hours tested)

Failure Rate
Products follow a pattern of failure. There is no information about the reliability (i.e. Failure) of the product. Failure Rate is a constant in known period of failure can be found out using Exponential Distribution Rt = e t Rt = Reliability of survival Rt = e - t / t = Time for operation without failure
= Failure rate = Mean time to Failure This function represents the probability that the item will not fail within t units of time.

Classification of failures
High failure rate at the initial stages because of inappropriate use or flaws in the design and manufacturing

Failure of the product due to accidents, poor maintenance or limitations on the design

Wear Out