Total Quality Management

• Inspection
• Quality Control
• Quality Assurance

• What is Quality?
• It is an individuals perception.
• ISO defines Quality is, “When something can
fulfill the stated and Implied needs of a customer,
it is said to be Quality.” such as :
 What is Quality?
1. Conformance to Specifications:
How well a product or service meet the targets and
tolerances determined by its designers.

2. Fitness for Use:

Evaluating how well the product performs for its
intended use

3. Value for price paid:

Its Usefulness as against the price paid for it.
4. Support Services:
After sales services provided after the purchase.

5. Psychological Criteria
It is the judgmental evaluation of what constitutes
product or service excellence.
 What is Cost of Quality
• It is the realization that the Organizations have
gained over a period of time that poor quality
affects all aspects of the organizations and that it
has dramatic cost implications such as:
Dissatisfied customers resulting into loss of business.
There are two types of costs:
1. Quality Control Costs
* Prevention Costs : Preventing poor quality from
occurring.
* Appraisal Costs : Uncovering the defects
2. Quality failure Costs:

* Internal failure Costs: Cost associated with the

poor product quality before it reaches the
customer.

* External failure Costs: Cost associated with quality

problems that occur at the customer site.
 The Philosophy of TQM
• The philosophy of TQM is almost the same as that
of Quality Assurance.
• TQM encompass the entire organization and
stresses that Quality is customer driven.
• TQM attempts to embed quality in every aspect of
the organization may it be:
• Technical aspects
• Involvement of people, employees, customers &
suppliers. ( Further explanation next )
 The Concepts of TQM Philosophy
• Customer Focus: To identify & meet Customer needs
• Continuous Improvement: Philosophy of never ending
improvements
• Employees empowerment: They must identify and correct
quality problems. Employees are encouraged and rewarded
for identifying the quality problems rather than punishing as
in the olden days.
• Use of Quality Tools: Ongoing employees training in the
use of Quality Tools.

( Further explanation in later slides)

 The Concepts of TQM Philosophy
• Product Design: It needs to be designed to
meet customer expectations.
• Process Management: Quality be built
into the product. (The QA concept)
• Managing Supplier Quality: Quality
concepts must extend to company’s
suppliers i.e, the suppliers need to be
trained to be able to meet the company’s
quality requirements.
 The Japanese Concept Of
Continuous Improvement
• The Japanese Concept, “Kaizen” which
means that the company continuously
strives to be better through learning and
problem solving. It is based on the fact that
we can never achieve perfection so we must
always evaluate our performance and take
measures to improve it.
 Continuous Improvement
Approaches
1. PDSA ( Plan – Do - Study - Act ) ,
2. Benchmarking
Plan: Evaluate the current process and make plans based on the
problems found.
Document all current procedures,
Collect data and Identify problems.
This info be studied and used to develop a plan for improvement
and specific measures to evaluate performance.
Do: Implement the Plan and
Document all changes made and collect data for
evaluation.
• Study: Study the data collected in the last step “Do” and
evaluate to see if the Plan is achieving the goal established
in the Plan phase.
• Act: Act on the basis of the results of the first three steps.
Communicate the results to other members of the
company and implement the new procedure if it has been
successful. AND
Repeat the cycle again for achieving Continuous
Improvement.
PDSA Cycle
 Continuous Improvement
Approaches

2. Benchmarking: Studying business

practices of companies considered,
“best in class” for the purpose of
comparison and keeping its
achievements as the Benchmark.
 Team Approach
TQM stresses that
• Quality is an organizational effort
• Two heads are better than one & therefore
• Team work culture must be fostered
( A team of volunteer production employees and their
supervisors, 8 – 10 members who meet regularly to solve
quality problems, known as “Quality circle”)
Quality circles must be encouraged to use techniques like brain
storming, open discussions and quality control tools to correct
problems.
Companies must set aside time in the workday for the team
meetings because contributions of these teams are considered
vital to the success of the company
 STATISTICAL
QUALITY CONTROL
SQC Meaning!

• Manufacturer uses Statistical techniques in

controlling the quality of goods.
• It is the means of establishing & achieving
quality specifications, which requires use of
tools & techniques of statistics.
 SQC Definition
• SQC can be simply defined as an economic
& effective system of maintaining &
improving the quality of outputs throughout
the whole operating process of specification,
production & inspection based on
continuous testing with random sampling.
 Characteristics of S.Q.C
• Designed to control quality of goods
produced for marketing.
• Exercise by the producers during the
production to assess the quality of goods.
• Carried out with the help of certain
statistical tools for collecting and analyzing
data.
• Designed to determine the variations in
quality of the goods & limits of tolerance.
Causes of Variation in Quality
• Assignable Causes:- Changes in the quality
of the products which can be assigned or
attributed to any particular causes like
defective materials, defective labour etc.
• Chance Causes:- These causes take place as
per chance or in a random fashion as a
result of the commulative effect of a
multiplicity of several minor causes which
cannot be identified. These causes are
inherent in every type of production.
 Methods of S.Q.C
• Process Control:- Under this the quality is
controlled while the products are in the
process of production.
• The process control is secured with the
technique of Control Charts. Control charts
are also used in the field of advertising,
packing etc. The ensure whether the
products conform to the specified quality
standards or not.
• (Upper & Lower control limits)
 Acceptance Sampling
• It is concerned with the inspection of
manufactured products. The items are
inspected to know whether to accept a lot of
items conforming to standards of quality or
reject a lot as non- conforming.
• However this process may create a risk for
either the consumer or the producer.
• Single and Double or Multiple sampling
Plan.
 Single Sampling Plan

Under single sampling plan, a sample of

‘n’ items is first chosen at random from
a lot of N items. If the sample contains,
say, ‘c’ or few defectives, the lot is
accepted, while if it contains more than
‘c’ defectives, the lot is rejected (‘c’ is
known as ‘acceptance number’).
Single Sampling Plan
Count the no. of
defectives,
‘d’ in the sample of size
‘n’

Is ‘d’ ≤ ‘c’

If yes, than accept the

If no, then reject the lot
lot
 Double Sampling Plan

• Under this sampling plan, a sample of ‘n1’ items is

first chosen at random from the lot of size ‘N’. If the
sample contains, say, ‘c1’ or few defectives, the lot is
accepted; if it contains more than ‘c2’ defectives, the
lot is rejected. If however, the number of defectives in
the sample exceeds ‘c1’, but is not more than ‘c2’, a
second sample of ‘n2’ items is take from the same lot.
If now, the total no. of defectives in the two samples
together does not exceed ‘c2’, the lot is accepted;
otherwise it is rejected. (‘c1’ is known as acceptance
no. for the first sample & ‘c2’ is the acceptance no. of
both the samples taken together)
Double Sampling Plan
Count the no. of
defectives, d1in the
first sample of size n1

Is d1 ≤ c1 ?

If yes, accept the lot

If No, then check

If c1 ≤ d1 ≥ c2 ?

Draw another sample

of size n2

Count the no. of

defectives d2 in this
sample

Is d1 + d2 ≤ c2

If yes, then accept the

If No, reject the lot
lot.
 Advantages of S.Q.C
• Helpful in controlling the quality of a
product.
• Eliminate assignable causes of variation
• Better quality at lower inspection cost
• Useful to both producers and consumers.
• It makes the workers Quality conscious.
• Help in earning goodwill/ repute.
 Limitations of S.Q.C
• Does not serve as a solution for all quality
evils.
• It cannot be used to all production process.
• It involves mathematical & Statistical
problems in the process of analysis &
interpretation of variations in quality.
• Provides only an information services.
 Quality Tools
• TQM stresses that employees must be able to identify
and correct quality problems and that the must be
trained for assessing quality b using different quality
tools.
• There are variety of Quality Control Tools like:
1. Cause and effect diagram
( also known as Fish Bone Diagram)
2. Flow chart
3. Check list / Check sheet
4. Pareto chart
5. Histogram etc;
Cause- and- effect Diagram
Check Sheet
Histogram
Flow Chart
Pareto Chart