Introduction to TQM: Fundamentals of

quality thinking and TQM. Understanding

variation. Control charts and statistical
analysis.
Conformance
Reliability
Durability
Service
Response
Continuous Improvement
Organizational
Management
Quality
The standard of something as measured against other things of a similar
kind; the degree of excellence of something.
fitness for use
fitness for purpose
conformance to the requirements
meeting the needs and expectations of customers
Value for money
Consistency
Quality is the customers' perception of the value of the
suppliers' work output
QUALITY
The standard of something as measured against other things of a
similar kind
Training to be FIT To score RUNS!!!!! and
Give victory to TEAM!!!
Abiding to the RULES of the game!
Meeting REQUIREMENTS of team
and fans
Value for money
Consistency
Total Quality Management
A management approach to longterm success through customer
satisfaction
An integrative philosophy of management for continuously improving
the quality of products and processes
Management philosophy and company practices that aim to harness the
human and material resources of an organization in the most effective
way to achieve the objectives of the organization
Customer-focused Total employee involvement Process-centered
Integrated system Strategic and systematic approach Continual
improvement Fact-based decision making
Aim of TQM is Customer Satisfaction
American Society for Quality:
The characteristics of a product or service that bear on its ability to
satisfy stated or implied needs;
A product or service free of deficiencies
Subir Chowdhury: Quality combines people power and process
power.
Philip B. Crosby: Conformance to requirements. The
requirements may not fully represent customer expectations;
Crosby treats this as a separate problem.
Joseph M. Juran: Fitness for use. Fitness is defined by the
customer.
Six Sigma: Number of defects per million opportunities.
W. Edwards Deming: concentrating on the efficient production
of the quality that the market expects, and he linked quality and
management: Costs go down and productivity goes up as
improvement of quality is accomplished by better management
of design, engineering, testing and by improvement of
processes.
Peter Drucker: Quality in a product or service is not what the
supplier puts in. It is what the customer gets out and is willing
to pay for.
ISO 9000: Degree to which a set of inherent characteristics
fulfills requirements. The standard defines requirement as need
or expectation.
A product or service
free of deficiencies
Crosby -
Conformance to
requirements
Juran - Fitness for use
Deming - concentrating on the efficient
production
The standard defines
requirement as need or
expectation.
Error-free, value-added care and service that meets and/or
exceeds both the needs and legitimate expectations of those
served as well as those within the Medical Center
The word "Quality" represents the properties of products
and/or services that are valued by the consumer.
Quality is a momentary perception that occurs when something
in our environment interacts with us, in the pre-intellectual
awareness that comes before rational thought takes over and
begins establishing order. Judgment of the resulting order is
then reported as good or bad quality value.
There are two definitive types of "quality".
Quality of design
Quality of the process
Whether you are in discrete manufacturing, process manufacturing or a
service related industry you have design issues of usability, comfort, and
tolerance of durability beyond prescribe use and identity of "status" of
design quality. In this regard, you do not have the axiom of "variation is
inherent..."
The ability to live up to the "quality of design" is maintained by the
"quality of the process"

Customer-focused
Total employee involvement
Process-centered
Integrated system
Strategic and systematic approach
Continual improvement
Fact-based decision making
Customer Focus
Total employee involvement
Continual improvement
Continual improvement
Vision Based
Customer Focused
Prevention Oriented
Scientifically
Approached
Emphasis on Process

Data Based Analysis
Continuous
Improvement Strategies
Cost Conscious Attempt
Documentation for
Traceability
Reward Assured
Vision
Customer Focused
Prevention Oriented
Scientifically Approached
Data Based Analysis
Emphasis on Process
Continuous Improvement
Reward Assured
Documentation
1. Fitness to standard
conformance to the specifications
Methods
Standardization;
Statistical quality control;
Inspection.
Drawbacks
Inspectors are "the enemy";
Inspections do not add any value;
Conformance to specifications does not mean conformance to needs
2. Fitness of use
conformance to the expected use
Methods
Market research
Contact customers
Drawbacks
Inspectors are "the enemy";
Inspections do not add any value
3. Fitness of cost
Conformance to the expected use and to the expected price
Methods
Statistical quality control (SQC)
Stochastic process control (SPC);
Providing feedback at each step;
Promote participation of the workers in the design and improvement;
Drawbacks
Everybody can copy
4. Fitness to latent requirement
Conformance to the unexpected needs

Level 1. Inspection measure the characteristics of a product
and compare them with its specifications;
Level 2. Quality Control inspection performed by the workers
themselves with a feedback loop to the production line;
Level 3. Quality Assurance set of (implemented) predefined
and systematic activities necessary to give confidence in the
process quality;
Level 4. Total Quality Management: Management centered on
quality and based on the participation of everybody which aims
at the customer satisfaction and at the improvement of the
company's personnel, of the company and of the society.
Decisions are taken based on the variations observed
Decisions are based on the interpretation of patterns of
variations in figures supported by relevant data
Causes of variation:
Process: a set of causes and conditions that repeatedly come together to
transform inputs to outputs. Inputs are people, materials or information
and probable outputs are products, services or behavior etc.
A system is an independent group of items, people or processes with a
common output
Quality characteristics of any organization can be defined by viewing
organization as a system

The variation in quality characteristics is of two types:
Common causes: causes that are inherently part of process (or system)
Special causes: these are not part of system but arise due to special
circumstances
Control charts are used to understand the distinction between
Common causes and Special causes
A process or system that has only common causes affecting the
outcomes is called stable process or is said to in state of statistical
control
A process or system that is affected by both common causes and
special causes is called as unstable process and is unpredictable
Special causes are to be identified and removed
Good or bad
performance
Common or special
causes
Focus Outcomes of process Variation in process
Aim Classify outcomes as
acceptable or not
Provide basis for action
on the process
Basis What customer wants
or needs
What the process is
actually delivering
Methods Specifications,
budgets, forecasts,
numerical goals etc.
Control charts
Common causes of variation
Random causes that we cannot identify
Unavoidable
Cause slight differences in process variables like diameter, weight,
service time, temperature, etc.
Assignable causes of variation
Causes can be identified and eliminated
Typical causes are poor employee training, worn tool, machine needing
repair, etc.

A measure of the ability of a process to meet preset
design specifications:
Determines whether the process can do what we are asking it
to do
Design specifications (tolerances):
Determined by design engineers to define the acceptable
range of individual product characteristics (e.g.: physical
dimensions, elapsed time, etc.)
Based upon customer expectations & how the product works
(not statistics!)

Control Charts show sample data plotted on a graph with
Center Line (CL), Upper Control Limit (UCL), and Lower
Control Limit (LCL).

Control chart for variables are used to monitor
characteristics that can be measured, e.g. length,
weight, diameter, time, etc.
Control charts for attributes are used to monitor
characteristics that have discrete values and can be
counted, e.g. % defective, number of flaws in a shirt,
number of broken eggs in a box, etc.
Mean (x-bar) charts
Tracks the central tendency (the average value
observed) over time
Range (R) charts:
Tracks the spread of the distribution over time
(estimates the observed variation)

P-Charts for quality characteristics that are discrete and involve
yes/no or good/bad decisions
Percent of leaking caulking tubes in a box of 48
Percent of broken eggs in a carton

C-Charts for discrete defects when there can be more than one
defect per unit
Number of flaws or stains in a carpet sample cut from a production run
Number of complaints per customer at a hotel

A quality control inspector at the Cocoa Fizz soft drink company has taken
three samples with four observations each of the volume of bottles filled.
If the standard deviation of the bottling operation is .2 ounces, use the data
below to develop control charts with limits of 3 standard deviations for the
16 oz. bottling operation.
Time 1 Time 2 Time 3
Observation 1 15.8 16.1 16.0
Observation 2 16.0 16.0 15.9
Observation 3 15.8 15.8 15.9
Observation 4 15.9 15.9 15.8

Time 1 Time 2 Time 3
Observation 1 15.8 16.1 16.0
Observation 2 16.0 16.0 15.9
Observation 3 15.8 15.8 15.9
Observation 4 15.9 15.9 15.8
Sample means
(X-bar)
15.875 15.975 15.9





x
.2
.1
n 4
| |
= = =
|
\ .





Center line (x-double bar):



Control limits for 3 limits (z = 3):

15.875 15.975 15.9
x 15.92
3
+ +
= =
( )
( )
x x
x x
UCL x z 15.92 3 .1 16.22
LCL x z 15.92 3 .1 15.62
= + = + =
= = =
Use this method when sigma
for the process distribution
is not known. Use factor A2
from Table 6.1
Factor for x-Chart
A2 D3 D4
2 1.88 0.00 3.27
3 1.02 0.00 2.57
4 0.73 0.00 2.28
5 0.58 0.00 2.11
6 0.48 0.00 2.00
7 0.42 0.08 1.92
8 0.37 0.14 1.86
9 0.34 0.18 1.82
10 0.31 0.22 1.78
11 0.29 0.26 1.74
12 0.27 0.28 1.72
13 0.25 0.31 1.69
14 0.24 0.33 1.67
15 0.22 0.35 1.65
Factors for R-Chart
Sample Size
(n)

Time 1 Time 2 Time 3
Observation 1 15.8 16.1 16.0
Observation 2 16.0 16.0 15.9
Observation 3 15.8 15.8 15.9
Observation 4 15.9 15.9 15.8
Sample ranges
(R)
0.2 0.3 0.2
0.2 0.3 0.2
R .233
3
+ +
= =





Center line:



Control limits for 3 limits:

( )
( )
2
x
2
x
15.875 15.975 15.9
CL x 15.92
3
UCL x A R 15.92 0.73 .233 16.09
LCL x A R 15.92 0.73 .233 15.75
+ +
= = =
= + = + =
= = =
Center Line and Control Limit
calculations:


4
3
0.2 0.3 0.2
CL R .233
3
UCL D R 2.28(.233) .53
LCL D R 0.0(.233) 0.0
+ +
= = =
= = =
= = =
Factor for x-Chart
A2 D3 D4
2 1.88 0.00 3.27
3 1.02 0.00 2.57
4 0.73 0.00 2.28
5 0.58 0.00 2.11
6 0.48 0.00 2.00
7 0.42 0.08 1.92
8 0.37 0.14 1.86
9 0.34 0.18 1.82
10 0.31 0.22 1.78
11 0.29 0.26 1.74
12 0.27 0.28 1.72
13 0.25 0.31 1.69
14 0.24 0.33 1.67
15 0.22 0.35 1.65
Factors for R-Chart
Sample Size
(n)
Use P-Charts for quality characteristics that are discrete
and involve yes/no or good/bad decisions
Percent of leaking caulking tubes in a box of 48
Percent of broken eggs in a carton

Use C-Charts for discrete defects when there can be more
than one defect per unit
Number of flaws or stains in a carpet sample cut from a production run
Number of complaints per customer at a hotel
A Production manager for a tire company has inspected the number
of defective tires in five random samples with 20 tires in each
sample. The table below shows the number of defective tires in each
sample of 20 tires.
Sample Sample
Size (n)
Number
Defective
1 20 3
2 20 2
3 20 1
4 20 2
5 20 1





Sample Number
Defective
Sample
Size
Percent
Defective
1 3 20 .15
2 2 20 .10
3 1 20 .05
4 2 20 .10
5 1 20 .05
Total 9 100 .09





p
p(1-p) (.09)(.91)
= = =0.064
n 20

CL p .09 = =



Center line (p bar):



Control limits for 3 limits:

( )
( )
p
p
UCL p z .09 3(.064) .282
LCL p z .09 3(.064) .102 0
= + = + =
= = = =
The number of
weekly customer
complaints are
monitored in a large
hotel. Develop a three
sigma control limits
For a C-Chart using
the data table On the
right.
Week Number of
Complaints
1 3
2 2
3 3
4 1
5 3
6 3
7 2
8 1
9 3
10 1
Total 22





Center line (c bar):



Control limits for 3 limits:

UCL c c 2.2 3 2.2 6.65
LCL c c 2.2 3 2.2 2.25 0
z
z
= + = + =
= = = =
#complaints 22
CL 2.2
# of samples 10
= = =
http://net1.ist.psu.edu/chu/course/tqm/t5.htm#Q5
http://www.qualitydigest.com/magazine/2001/nov/article/defini
tion-quality.html#
http://en.wikipedia.org/wiki/Total_quality_management
http://asq.org/learn-about-quality/total-quality-
management/overview/overview.html
And many more