TQM (Total Quality Management)

UNIT I

Dr. Sandeep Naga

Ph.D., MBA, BE (Mechanical), PGDGC, PGDEMA, PGD (PPIM)
 TQM (Total Quality Management)
UNIT I
• Introduction: Concept of quality, Definition, Dimensions of quality, Evolution of TQM,
Components of TQM, Developing quality Culture. Customer Focus and Satisfaction: Meeting
Customer needs and Expectations, Translating customer needs into requirements (Kano
Model) using customer complaints.
UNIT II
• Philosophy of TQM: Philosophies of Deming, Crosby, Juran and Taguchi, PDSA Cycle, Costs of
Quality, Measuring quality costs, Criteria for Malcolm Baldrige Quality Award.
UNIT III
• Prerequisite for TQM: Quality Orientation, Leadership, Employee Involvement, Role of
ISO9000 QMS , Organizing for quality.
UNIT IV
• Quality by Design: Production and product development tools, Taguchi methods, Design of
Experiments, Orthogonal Arrays. Benchmarking: Evolution, Process of benchmarking,
Understanding current performance, Types of Benchmarking, issues in Benchmarking.
UNIT V
• Tools of TQM: Management Tools, Design review, Pokayoke, Force field analysis, FMEA, FTA,
DRM and 5S Principles.
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UNIT I
Introduction:
• Concept of quality,
• Definition,
• Dimensions of quality,
• Evolution of TQM,
• Components of TQM,
• Developing quality Culture.

Customer Focus and Satisfaction:

• Meeting Customer needs and Expectations,
• Translating customer needs into requirements (Kano Model) using customer
complaints.
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Quality – Quality, as it applies to an object (product, service, process), is defined as the “degree
to which a set of inherent characteristics (attributes) of the object satisfies a set of
requirements.” Therefore, the quality of an object is determined by comparing a predetermined
set of characteristics against a set.
Dictionary has many definitions: “Essential characteristic,” “Superior,” etc.
Some definitions that are accepted in various organizations:
 “Quality is customer satisfaction,”
 “Quality is Fitness for Use.”

Concept of quality:
1. Perfection
2. Consistency
3. eliminating waste
4. Speed of delivery
5. Compliance with policies and procedures
6. Providing a good, usable products
7. Doing it right the first time
8. Delighting or pleasing customers
9. Total customer service and satisfaction
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Quality is a complex phenomenon based on perceptions by individuals with different
perspectives on products and services. These perceptions have been built up through the past
experience of individuals and consumption in various contexts. Consequently, quality
encapsulates time and other contextual dimensions that add to the complexity of what is
essentially a subjective evaluation of the quality of good and/or service by the consumer.

There are varied definitions of quality. Few of these are:

 “Quality is conformance to specifications.” —British Defense Industries Quality Assurance Panel

 “Quality is conformance to requirements.” —Philip Crosby
 “Quality is fitness for purpose.” —Dr Juran
 “Quality is synonymous with customer needs and expectations.” —R J Mortiboys
 “Quality is a predictable degree of uniformity and dependability, at low cost and suited to the market.”
—Dr Edward Deming
 “Quality is meeting the (stated) requirements of the customer – now and in the future.” —Mike
Robinson
 “Quality is the total composite product and service characteristics of marketing, engineering,
manufacturing and maintenance through which the product and service in use will meet the
expectations by the customer. “ —Armand Feigenbaum
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Dimensions of quality:
Eight dimensions of quality include
 Performance,
 Performance has to do with the expected operating characteristics of a product or service. Does a service or
product do what it’s supposed to do? The primary operating characteristics involve measurable elements, which
makes it easier to objectively measure the performance.

 Some of the performance requirements are related to subjective preferences, but when they are the preference
of almost every consumer they become as powerful as an objective requirement.

 Features,
 What the dimension ‘performance’ doesn’t focus on are the features, the characteristics that decide how
appealing a product or service is to the consumer.

 Such features are the extras of a product or service and complement its basic functioning. This means that the
ones designing a product or service should be familiar with the end-users and should be updated on
developments in consumer preferences. Often it’s difficult to see a clear line between primary performance
attributes and additional features.

 An example of features in service is offering free drinks on a plane. An example of features in products is adding a
drink cooler in the car.
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Dimensions of quality:
Eight dimensions of quality include
 Reliability,
 Reliability is usually closely related to performance. The focus of the dimension reliability is more on how long a
product will perform consistently according to the specifications of that product. This is important to customers
who need the product to work without any errors and contributes to a brand or company’s image.

 The dimension reliability shows the probability of the product having signs of error within a specific time of
period. For measuring reliability you should measure the time to the first failure, how much time there is
between failures, and the failure rate per a specific time of period.

 These measures are usually applied to products that are expected to last for a longer time and not so much for
products that are meant to be used directly and for a shorter time period. Usually when the costs for
maintenance or downtime increase, reliability as a dimension of quality becomes more important to consumers.

 For example, for parents with children who depend on a car, the reliability of the car becomes an important
element. Also for most farmers, reliability is a key attribute.

 This group of consumers is sensitive to downtime, especially during the shorter harvest seasons. For a farmer,
reliable equipment can be crucial in preventing spoiled crops. Also, the reliability of computers is key for many
consumers.
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Dimensions of quality:
Eight dimensions of quality include
 Conformance,
 This dimension is closely related to the dimensions performance and features. The dimension of conformance is
about to what extent the product or service conforms to the specifications. Does it function and have all the
features as specified? Every product and service has some sort of specifications that comes with it.
 For example, the materials used or the dimensions of a product can be specified and set as a target specification
for the product. Something that can also be defined in the specification is the tolerance, which states how much a
product is allowed to deviate from the target. Problematic with this approach is that it makes it easier for
producers to focus less on if the specifications have been met as long as they’ve met the tolerance limits.
 When it comes to service businesses, conformance is measured by focussing on the accuracy, the number of
processing errors, unexpected delays and other common mistakes.

 Durability,
 Out of the eight dimensions of quality, the dimension durability is about how long a product will last or perform
and under what conditions it will perform. Estimating the length of a product’s life becomes complicated when
it’s possible to repair the product.
 For such products, the durability will be counted until it is no longer economically beneficial to use it. This is when
the repairs and the costs of repairing increase.
 Customers then must weigh the costs for future repairs against the costs of investing in a new one together with
its operating expenses. In other cases, durability is measured by the amount someone can use a product before it
stops working and repair is impossible.
 This, for example, is the case when a light bulb burns up and must be replaced by a new one. In this case,
repairing it is impossible.
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Dimensions of quality:
Eight dimensions of quality include
 Serviceability,
 Serviceability is one of the eight dimensions of quality that reflects on if the product is relatively easy to maintain
and repair. This becomes important for consumers who are more focused on the total cost of ownership as
criteria for selecting a product.

 Serviceability reflects on how easy it is for the consumer to obtain repair service, how responsive the service
personnel is, and how reliable the service is. It also focuses on the speed with which a product can be repaired
and also the competence and behaviour of the personnel.

 Customer’s concerns are mainly about the product getting defects, but also how long it takes for the product to
be repaired. It is not only important if a product can be fixed, but also how satisfied the customer is about the
company’s complaint handling procedures.

 This can affect how the customer evaluates the service quality and eventually the company’s reputation. Each
company has a different way of dealing with complaint handling and not every company attaches the same level
of importance to serviceability.

 For example, there are companies that do their best to resolve the complaints they receive, while others don’t
offer any service when it comes to complaints. An example of improving a company’s serviceability is by installing
a cost-free phone number to reach the helplines.
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Dimensions of quality:
Eight dimensions of quality include
 Aesthetics,
 The aesthetics dimension is all about the way a product looks and contributes to the company’s identity or a
brand. Aesthetics is not only about how a product looks but also about how it feels, tastes, smells or sounds.
 This is clearly determined by individual preference and personal judgement, however, there is a way to measure
this dimension. There are some clear patterns found in the way consumers rank products based on personal
taste. Still, the aesthetics of a product is not as universal as the dimension ‘performance’.
 Not all people prefer the same taste or smell, which makes it impossible to please every single customer. For this
reason, companies end up searching for a niche.

 Perceived quality.
 The perception of something is not always reality. Meaning that a product or service can have high scores on each
of the seven dimensions of quality, but still receive a bad rating from customers as a result of negative
perceptions from customers or the public.
 Customers sometimes lack information about a service or product and for comparing brands will rely on indirect
reviews. This is usually the case when it comes to a product’s durability because in most cases it can’t be
observed directly.
 Also, reputation plays a significant role when it comes to perceived quality. It’s easier for a customer to trust the
quality of a company’s new product when the established products received positive reviews.
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Dimensions of quality:
Eight dimensions of quality include
 Competing on the Eight Dimensions of Quality
 For a company to apply all eight dimensions at the same time is not always possible. Some dimensions can
reinforce one another, while others can’t. An improvement in one dimension can result in a decline in the other
dimension.
 Another reason why it’s not always possible to pursue all dimensions is because of the costs of investment, which
could lead to unreasonable prices for the customer. Therefore, understanding which trade-offs among the eight
dimensions are preferred by the customers can lead to a competitive advantage.
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Dimensions of quality:
Eight dimensions of quality include
 Summary
 As a strategic management tool the eight dimensions of quality, as defined by David A. Garvin,
help producers to meet the expectations of its customers. This tool can be applied to products
and services and consists of the following eight dimensions.
 The first one is performance and refers to the primary operating characteristics of a product or
service. The second one, features, focusses on additional elements of a product or service that
improve the customers appeal to it.
 Measuring quality along the lines of reliability is the third dimension. The fourth dimension,
conformance, measures to what extent the product or service meets the standards that are
specified.
 Also measuring the length of a product’s life determines the quality of a product and falls
under the dimension durability. The sixth dimension, serviceability, is all about the service
provided after a product breaks down. For this dimension, quality will be measured by the
speed of the service, the competence and the behaviour of the service providers.
 Aesthetics is the most subjective dimension of the eight and focuses on the individual’s
preference. The last dimension is about the quality ranking that has been given for a product
or service as a result of indirect measures. Using the eight dimensions of quality while
understanding the preferences of the customer can lead to a competitive advantage.
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TQM (Total Quality Management)
A comprehensive, organization-wide effort to improve the quality of products and services,
applicable to all organizations.

Total Quality Management (TQM), a buzzword phrase of the 1980’s, has been killed and
resurrected on a number of occasions. The concept and principles, though simple seem to be
creeping back into existence by “bits and pieces” through the evolution of the ISO9001
Management Quality System standard. “Total Quality Control” was the key concept of Armand
Feigenbaum’s 1951 book, Quality Control: Principles, Practice, and Administration, in a chapter
titled

“Total Quality Control”. Feigenbaum grabs on to an idea that sparked many scholars interest in
the following decades that would later be catapulted from Total Quality Control to Total Quality
Management.

Total Quality Management (TQM) is a management strategy aimed at embedding awareness

of quality in all organizational processes. TQM has been widely used in manufacturing,
education, government, and service industries, as well as NASA space and science programs.
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TQM Guru:
Some of the major contributors towards the thought of TQM are:
1. M. Edwards Deming,
2. Joseph M. Juran,
3. Philip B. Crosby,
4. Armand V. Feigenbaum
5. Bill Conway,
6. Kauru Ishikawa
7. Genichi Taguchi,
8. Shigeo Shingo
9. W.G. Ouchi,
10. Vilfredo Pareto,
11. Tom Peters,
12. S.R. Udpa,
13. Stephen Covey, and
14. J.S. Oakland.
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TQM (Total Quality Management)

Who is the father of TQM, Quality Management?

W Edwards Deming
W Edwards Deming: father of quality management, patient and composer.

William Edwards Deming (October 14, 1900 – December 20, 1993) was an American engineer,
statistician, professor, author, lecturer, and management consultant. Educated initially as an
electrical engineer and later specializing in mathematical physics, he helped develop the
sampling techniques still used by the U.S. Department of the Census and the Bureau of Labor
Statistics. He is also known as the father of the quality movement and was hugely influential in
post-WWII Japan. He is most well-known for his theories of management.
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TQM (Total Quality Management)

Deming has been universally acclaimed as one of the Founding Fathers of Total Quality
Management, if not the Founding Father. The revolution in Japanese manufacturing
management that led to the economic miracle of the 1970s and 1980s has been attributed
largely to Deming.

Dr. W. Edwards Deming's outlook on quality was simple but radical. He asserted that
organizations that focused on improving quality would automatically reduce costs while those
that focused on reducing cost would automatically reduce quality and actually increase costs as
a result.
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W. EDWARDS DEMING’S 14 POINTS FOR TOTAL QUALITY MANAGEMENT
1. Create constancy of purpose for improving products and services.
2. Adopt the new philosophy.
3. Cease dependence on inspection to achieve quality.
4. End the practice of awarding business on price alone; instead, minimize total cost by
working with a single supplier.
5. Improve constantly and forever every process for planning, production and service.
6. Institute training on the job.
7. Adopt and institute leadership.
8. Drive out fear.
9. Break down barriers between staff areas.
10. Eliminate slogans, exhortations and targets for the workforce.
11. Eliminate numerical quotas for the workforce and numerical goals for management.
12. Remove barriers that rob people of pride of workmanship, and eliminate the annual rating
or merit system.
13. Institute a vigorous program of education and self-improvement for everyone.
14. Put everybody in the company to work accomplishing the transformation
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TQM (Total Quality Management)
According to International Organization for Standardization (ISO): “TQM is a management
approach for an organization, centered on quality, based on the participation of all its members
and aiming at long-term success through customer satisfaction, and benefits to all members of
the organization and to society.”

One major aim is to reduce variation from every process so that greater consistency of effort is
obtained.

TQM is composed of three Paradigms:

 Total: Involving the entire organization, supply chain, and/or product life cycle
 Quality: With its usual Definitions, with all its complexities
 Management: The system of managing with steps like Plan, Organize, Control, Lead, Staff,
provisioning and the likes.

TQM is defined as both a philosophy and a set of guiding principles that represent the
foundation of a continuously improving organization. It is the application of quantitative
methods and human resources to improve all the processes within an organization and exceed
customer needs now and in the future. TQM integrates fundamental management techniques,
existing improvement efforts, and technical tools under a disciplined approach.
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 Total Quality Management (TQM) is a management strategy aimed at embedding
awareness of quality in all organizational processes. TQM has been widely used in
manufacturing, education, government, and service industries, as well as NASA space and
science programs.

 Total Quality Management (TQM) is a management approach that seeks to provide long-
term success by providing unparalleled customer satisfaction through the constant delivery
of quality.

 Total quality management consists of organization-wide efforts to “install and make

permanent climate where employees continuously improve their ability to provide on
demand products and services that customers will find of particular value”.

 Total Quality Management (TQM) is a management technique based on the idea that all
“employees continuously improve their ability to provide on-demand products and services
that customers will find of particular value.”

 Total quality management (TQM) has been defined as an integrated organizational effort
designed to improve quality at every level.
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 TQM can be defined as a management technique for improving processes, products, services
and the other approaches associated with the product. It focuses on the entire business and
NOT just on a particular project or process.
 TQM is a management approach for an organization, depending upon the participation of all
its members (including its employees) and aiming for long-term success through customer
satisfaction. This approach is beneficial to all members of the organization and to the society
as well.
 The process to produce a perfect product by a series of measures require an organized
effort by the entire company to prevent or eliminate errors at every stage in production is
called Total Quality Management (TQM).

TQM in computer science:

Total Quality Management (TQM) is a management framework based on the belief that an
organization can build long-term success by having all its members, from low-level workers to its
highest ranking executives, focus on improving quality and, thus, delivering customer
satisfaction.
The role of TQM in software project management:
TQM oversees all activities and tasks needed to maintain a desired level of excellence within a
business and its operations. This includes the determination of a quality policy, creating and
implementing quality planning and assurance, and quality control and quality improvement
measures.
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The concept of TQM
 Produce quality work the first time.
 First-time quality, also known as "first-time yield" and "first time right," is both an approach for completing a
process free of defects on the first attempt and a metric for measuring the extent to which this is successful.
 First time right should be the top-most priority for anything that we expect to deliver (an output, product or
service) to a customer or we would expect to receive as a customer. As a customer we would want to get a
product or service that is built to meet the stated requirement.

 Focus on the customer.

 When you understand what your customer wants or needs, you have a better chance of figuring out how to get
the right materials, people, and processes in place to meet and exceed their expectations. To implement this TQM
principle: Research and understand your customers' needs and expectations.
 It is important that you continually research and understand the needs and demands of the customers. Total
Quality Management helps employees understand their target customers before making any changes in the
processes and systems to deliver better quality products/services for customer satisfaction.

 Have a strategic approach to improvement.

 To implement this TQM principle: Provide your people with the proper training and resources that will help them
complete their individual steps in the process. Continually improve processes and products, and upgrade
equipment as necessary to reach goals.
 Strategic and Systematic Approach: The organization's strategic objectives are not lost with the focus on
processes. In fact, TQM leaders seek to align the organization around strategic goals. Continual Improvement: The
search for perfection is never-ending.
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The concept of TQM
 Improve continuously.
 Continuous process improvement is defined as, “The ongoing improvement of products, services or processes
through incremental and breakthrough improvements.” It doesn't only mean that a business should make
changes along the way when things aren't working smoothly.
 Continuous improvement methodology hinges on four concrete phases: plan, do, check, and act. This is
sometimes called the plan-do-check-act cycle or PDCA cycle, and it reveals the guiding principles of continuous
improvement.
 A continuous (continual) improvement plan is a string of processes and procedures that a company puts in place
to improve its services and products. This plan entails an on-going review of a company's products and services
with a bid to take actions that will improve them.

 Encourage mutual respect and teamwork.

 Encourage mutual respect and teamwork means all employees participate in working toward common goals.
Total employee commitment can only be obtained after fear has been driven from the workplace, when
empowerment has occurred, and management has provided the proper environment.
 With a focus on teamwork, TQM leads to the creation of cross-functional teams and knowledge sharing. The
increased communication and coordination across disparate groups deepens institutional knowledge and gives
companies more flexibility in deploying personnel.
 Teamwork - collaboration between managers and non-managers, between functions, and between customers
and suppliers - is the third TQM principle.
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Origin and Evolution of Quality Management:
Total quality management (TQM) evolved from the Japanese after World War II with the
inspiration from quality experts like Juran and Deming. As it evolved, it changed from process
driven by external controls to a customer oriented process. Quality is achieved through
prevention rather than inspection. The roots of Total Quality Management (TQM) can be traced
back to early 1920s when statistical theory was first applied to product quality control. This
concept was further developed in Japan in the 40s led by Americans.
The history of Total Quality Management (TQM) began initially as a term coined by the Naval
Air Systems Command to describe its Japanese-style management approach to quality
improvement. An umbrella methodology for continually improving the quality of all processes, it
draws on a knowledge of the principles and practices of:
 The behavioral sciences
 The analysis of quantitative and nonquantitative data
 Economics theories
 Process analysis
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Origin and Evolution of Quality Management:
1920s •Some of the first seeds of quality management were planted as the principles of scientific management swept
through U.S. industry.
•Businesses clearly separated the processes of planning and carrying out the plan, and union opposition arose
as workers were deprived of a voice in the conditions and functions of their work.
•The Hawthorne experiments in the late 1920s showed how worker productivity could be impacted by
participation.
1930s •Walter Shewhart developed the methods for statistical analysis and control of quality.

1950s •W. Edwards Deming taught methods for statistical analysis and control of quality to Japanese engineers and
executives. This can be considered the origin of TQM.
•Joseph M. Juran taught the concepts of controlling quality and managerial breakthrough.
•Armand V. Feigenbaum’s book Total Quality Control, a forerunner for the present understanding of TQM, was
published.
•Philip B. Crosby’s promotion of zero defects paved the way for quality improvement in many companies.

1968 •The Japanese named their approach to total quality "companywide quality control." It is around this time that
the term quality management systems arises.
•Kaoru Ishikawa’s synthesis of the philosophy contributed to Japan’s ascendancy as a quality leader.

Today •TQM is the name for the philosophy of a broad and systemic approach to managing organizational quality.
•Quality standards such as the ISO 9000 series and quality award programs such as the Deming Prize and
the Malcolm Baldrige National Quality Award specify principles and processes that comprise TQM.
•TQM as a term to describe an organization's quality policy and procedure has fallen out of favor as
international standards for quality management have been developed. Please see our series of pages
on quality management systems for more information.
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The eight principles of TQM are:
 Customer focus,
 Employee involvement,
 Integrated system,
 Process-centric approach,
 Systematic flow,
 Continual efforts,
 Fact-based decision-making, and
 Relationship management.
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Importance of Total Quality Management
 Customers always seek highest quality in terms of product, service & experience. Every
company focuses on delivering customer needs, and offering a high value product. Hence,
to ensure high customer satisfaction, companies need to provide high quality goods &
services, but also need to make sure it is cost effective & efficient.
 This is where TQM plays a pivotal role in a company’s long-term strategy. Total quality
management is driven by contribution & quality improvements by all functions or
departments. Quality improvements done in production processes, inventory
management, finished goods, work culture etc. all form a part of TQM.
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Components of TQM
The key components of total quality management are:
 Strategic & Systematic Approach
Strategy to improve overall business processes is critical for high quality goods & services. If
the senior management is not involved, TQM will fail. The management should strategize the
processes for all functions. A quality council should be formed comprising of the CEO and
senior management to decide on the core values to help decide the culture of the
organization.
 Customer Priority
A customer expects a company should deliver high quality, high flexibility, high service level,
short lead times, low variability in meeting targets and low cost. The customer expects
improvement on all these parameters, and hence are critical under total quality management.
 Employee Involvement
Providing training to help employees acquire necessary skills, cross functional training,
continuous process improvement and other statistical tools for people driven improvement is
important for TQM. Local ownership is aimed at taking ownership for the processes people
are associated with.
 Continuous Improvement
Despite having business processes in place, there is always a mechanism to improve existing
processes. This can be in terms of cost cutting, process improvements, improving lead times,
increasing efficiency etc.
 Business Centric
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TQM is largely driven by improving business processes. Some performance measures which can
help improve overall business are:
a. Quantity improvement – Increasing the number of units produced during a period of time.
b. Cost – The resources needed to produce given output.
c. Time/Delivery – Ability to deliver the product or service within the mentioned time.
d. Qualitative aspects – Theses focus on functions, aesthetics, accuracy etc.
 Integrated Systems
To ensure there is an overall improvement in business, quality & its processes, it is critical to
have a centralized system as a part of total quality management. Having a centralized
integrated system is beneficial as it empowers the different business verticals & senior
management to monitor, evaluate & improve all different business processes.
 Evaluated Decisions
Quality & processes can be improved only based on systematic understanding through data
collection, measuring output & taking informed decisions. Once a company has collected
enough information of different department & their processes, it can take a decision to
increase overall productivity, quality & efficiency.
 Effective Communication
TQM can be delivered only when all processes, quality standards, minimum requirement
guidelines are well communicated with all the different employees. Also, these qualities can be
used as a USP to sell products & services to customers as well.
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Basic concepts and framework of TQM:
 Management commitment
 Focus on customer (both external and internal)
 Employee involvement, empowerment
 Continuous improvement
 Treating suppliers as partners
 Establish performance measures for processes
 Designing products for quality
 Quality at the source
 Defect prevention
 Root cause corrective action
 Benchmarking
 Training
 Positive motivation
 Team-work
 Management by fact and
 Quick response.
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Quality Circle:
A quality circle or quality control circle is a group of workers who do the same or similar work,
who meet regularly to identify, analyze and solve work-related problems. It consists of
minimum three and maximum twelve members in number.

A group of employees who meet regularly to consider ways of resolving problems and improving
production in their organization.

A quality circle is a participatory management technique that enlists the help of employees in
solving problems related to their own jobs. Circles are formed of employees working together
in an operation who meet at intervals to discuss problems of quality and to devise solutions
for improvements.

Father of the QC Circle: Prof. Kaoru Ishikawa

Kaoru Ishikawa advocated forming “QC Circle” in order to educate and promote Quality Control
for front-line workers in the workplace, on the way to realize Total Quality Control, and strived
to promote it by establishing the QC Circle Headquarters, within JUSE, in 1962 for systemization.

Edwards Deming. While Dr. Juran is often hailed as “the father of quality,” quality management
as we understand it today would likely not exist without the contributions of another key figure
– W. Edwards Deming.
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Quality Circle
 Quality circle is a people building philosophy based on the premise that an employee doing a
particular job is biggest expert of that field and thus is in a better position to identify, analyze
and resolve the work related problems through their innovative and unique ideas.
 It is a voluntary group of employees, who are doing the same or similar type of job, meet
together on a regular’ basis to identify, analyze and solve their work related problems leading to
improvement in their work, performance and- enrichment of their work life. The number of
circle members could vary from 5 to 15 but the ideal size of a circle is 7 or 8 members. The
number of members should be such that the circle is effective.
Set up of Quality Circle:
1. Non-members are the persons who help in implementing the recommendations made by the
quality circle members.
2. Members are the main players in the programme and they participate in the meetings, express
their ideas and develop solutions to the problem.
3. Leader is elected by the members and the line manager may act as the leader of the quality
circle.
4. Facilitator is a link between the quality circle leader and the steering committee and his
duties include co-ordination, training of members, initiating forming of quality circle, provide
feedback to steering committee and act as an evaluator.
5. Steering committee, the apex body operating at plant level, responsible for formulating
objectives and providing resources to quality circle members.
6. Top Management, the decision making body, consisting of chief executive officer, general
managers and other senior managers provides support and encouragement to quality circles.
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Tips to effectively implement a quality circle programme
First, the organisation establishes a steering committee, which usually involves between five and
15 members whose role is to draw up policies and set objectives to develop the quality circle.
The steering committee chooses a coordinator who implements the quality circle under the
guidance of the steering committee. To complete the setup of an effective quality circle,
consider the following tips:
 Name the quality circle: The name usually expresses the goals of the group and gives the
circle credibility.
 Define the purpose of the group: Inform employees of the groups' aims and objectives.
 Choose facilitators: The facilitator has a key role in getting the quality circle started and
overcoming barriers. They often offer advice in the early stages of the programme.
 Select the leaders: Each quality circle needs a leader. The leader attends the meetings and
guides the projects of the circle. They offer solutions and oversee the group.
 Schedule meetings: Circles meet weekly, often at lunchtime or after work. A member of the
circle takes formal minutes to ensure that there is a clear record of discussions, responses
and decisions.
 Review process: The management team oversees the results and progress of the quality
circle and regularly reviews its success. This creates the potential for improvements.
 Unit - I
Why Quality Control Circle?
Workforce knows best about the work area.
With proper support, most of their problems will be solved by themselves.
QC Circle raises morale and team spirit.
Work becomes safer and easier.
Improve quality and efficiency of work

How does the QC circle work?

Training on problem-solving tools and techniques like 7 QC tools, 8D, 5Whys, and Poka-Yoke,
etc. must be given to the workforce for effective implementation of QC Circles projects in an
organization. The quality circle steps include:
Step 1: Training on 7 QC tools and Poka-Yoke
Step 2: Forming and naming quality circles-
QC circles are formed with 4 to 6 members.
One member acts as a leader by rotation.
One supervisor acts as a facilitator.
Step 3: Identify Quality Circle themes
Step 4: Select a project based on priority.
Step 5: Find the best solution using standardized methodology.
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Quality Circle Steps:
 Defining the Problem
 Analyzing the Problem
 Identifying the Cause
 Finding out the Root Cause
 Data Analysis on Root Cause
 Developing Solution
 Foreseeing Possible Resistance
 Trail, Implement and Checking Performance
 Regular Implementation
 Follow – up / Review
Quality Circle Tools / Quality Circle Techniques
The workers should be given in-depth exposures to basic 7 qc tools of quality, Poka Yoke and
Kaizen techniques.
The most common QC tools and techniques used in QC Circle projects to analyze the problem,
discover the root causes and helps to implement the effective countermeasures are:
7 QC Tools:
 Check sheet
 Fishbone diagram or Cause and effect diagram
 Pareto chart
 Control Chart
 Histogram or Frequency distribution chart
 Stratification of data
 Scatter diagram
 Unit - I
Quality circle techniques
Quality circles use specific techniques to maximise improvement and solve problems effectively.
They mainly apply the techniques below:
 Brainstorming: This gives all members an opportunity to raise issues and offer ideas. A
member of the group writes down all the ideas for evaluation.
 Mind mapping: This is a helpful system for recording information and collating facts and
ideas. It facilitates the early stages of problem-solving.
 Pareto analysis: An effective method for prioritising tasks and identifying methods that might
deliver the highest impact on the problems.
 Cause and effect analysis: Recording the cause and effect of the problems and solutions on a
fishbone diagram is a simple, reader-friendly way of summarising problems and solutions.
 Data gathering: This is essential for verifying cause and effect. An analysis of the data follows
this step.
 Charts, graphs and drawings: These are effective ways of recording and representing data
relating to problems and solutions.
 Management: They approve the implementation of the project and carry out regular
monitoring and controls.
Many ideas arise from quality circle meetings. Evaluating the ideas and looking at alternative
ideas is usually the next stage before the decision-making process. This step requires critical
thinking and logic. Once the group has decided on a course of action, they commit to it, test its
outcome and present their findings to management. Implementing and evaluating results are
ongoing processes.
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There are some other potential quality tools used in quality circles techniques to analyze and
solve the quality problems effectively:
 Process flow diagram
 Bar graph or charts
 Process mapping tools
 Run Chart
 Why-Why Analysis

Poka-Yoke: Poka yoke is a Japanese term that means Mistake Proofing or Error Proofing. Poka-
yoke techniques help to prevent, detect, and correct the error/defects that occur in the
manufacturing process.

Kaizen: The kaizen principle or objective is the continuous improvement in the product and
process quality by eliminating waste and creating values.
Guidelines for Quality Circles Success
Unit - I
Once the Quality Circles are initiated in any organization, it is the responsibility of the top
management to nurture them and pay attention to all relevant aspects related to QC project.
 The QC member should attend the meeting regularly, punctually, and work in groups in the
desired manner.
 Circle members should participate actively in the discussions and learn the techniques and
new things taught to them.
 Training on 7 QC tools and kaizen must be given to all circle members.
 The circle must select the leader from within its own members.
 A circle must have one facilitator and QC administrator who guide and support QC projects.
 The Quality Circle meeting’s discussion points must be maintained in a record book and
should be verified by the coordinator in the organization for correction and effectiveness.
 Circle follows the agenda without wasting time and listening to others while putting their
points of view and suggestions.
 Quality circle members must maintain proper records about their activities.

The following points must be covered in the QC record book:

 QC Circle theme, section, department, and organization address.
 Meeting date, time, duration, and place of meeting.
 Quality Circle movement start date, when the circle was formed, and date of inauguration.
 The number of problems identified by them since functioning, their classification, and the
number of problems solved so far.
 Unit - I

Developing Quality Culture

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Developing quality Culture
We define a “true culture of quality” as an environment in which employees not only follow
quality guidelines but also consistently see others taking quality-focused actions, hear others
talking about quality, and feel quality all around them.
In concrete terms, quality culture means creating a culture of trust, participation and
communication in which quality goals are underpinned by employee participation. A quality
culture that is sustainably implemented and lived by the workforce also generates a positive
dynamic within the supply chain.

How to develop quality culture in TQM?

In order to achieve a higher level of quality, you can use the following TQM principles as a
starting point:
 Put quality first in your list of priorities.
 Everyone is responsible for the quality as it is integrated into every aspect of the business.
 In a quality culture, quality is not just a department – it’s everyone’s job.
 Involve Top management in your quality management activities.
 Use SMART objectives. (S-Specific, M-Measurable, A-Achievable, R-Realistic/Relevant, T-
Timely)
 Define and fulfill your commitments to customers, teams, and top management.

What are the benefits of quality culture?

Organizations that foster the development of a quality culture usually experience less employee
frustration, less employee turnover, and more successful regulatory inspections.
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What is Quality Culture?
Quality culture is an environment where quality is the top priority. Everyone is responsible for
the quality as it is integrated into every aspect of the business. In a quality culture, quality is
not just a department – it’s everyone’s job. Every member of the company genuinely cares
about their work and performance, making decisions based on achieving the highest level of
quality possible.

Many companies have their quality policy printed and posted on the office walls for everyone
to see. Employees might know what the policy is all about, but an indication of a good quality
culture is when employees truly care about the policy, can truly relate to it, and actually put it
into practice. They don’t just treat it as an obligation that they need to put on memory. Instead,
they actually care and put it to heart about instilling quality within the workplace.

True quality culture serves as the foundation to making safe and effective products to improve
customer lives or solve their problems. A team with that kind of mindset indicates a good
quality culture within their company or organization.

If not, the issue isn’t your company not caring about its target consumers – it’s just that the
quality culture hasn’t been encouraged enough. Looking at the bright side of this situation, it’s
a great opportunity for you to make improvements that will resonate with every aspect of your
business and improve the standard of your operations.
 Unit - I
7 (Seven) Tips For Creating a Quality Culture:

Creating a quality culture can be a challenge, but it’s worth it. A quality culture leads to better
products and services, improved customer satisfaction, and increased profits. Not only that,
but employees who work in a quality culture are also more engaged and have higher job
satisfaction.

To help you create a quality culture in your company, here are seven key tips that you should
follow:
1. Define and Outline Company Values
It’s all about defining quality. This may seem like a no-brainer, but it’s important to have a
clear definition of what quality means to your company. Once you have a definition, make
sure it’s communicated to everyone in the company. Employees should be able to recite your
quality policy, and it should be posted in a visible place in the office.

2. Make Quality Everyone’s Responsibility

Train everyone in your company in quality culture and how to stimulate it. Quality culture
starts at the Top, but it’s everyone’s responsibility to uphold quality standards. From the CEO
to the janitorial department (चौकीदार विभाग), quality should be everyone’s top priority. In
addition, training is a worthy investment that pays off in the long run.
 Unit - I
3. Quality Over Compliance
Pursue quality instead of trying to achieve compliance. While quality and compliance go
hand in hand, complying doesn’t mean you’re producing a quality product. For instance, fast
food restaurants are always compliant with regulations. But that doesn’t mean they’re
producing quality-tasting meals. On the other hand, focusing more on quality will let you hit
two birds with one stone: you will have a better product and have fewer issues with
consumers. At the same time, you will also be compliant with every regulation you need to
follow.

4. Encourage Open Communication

To have a quality culture, you need to encourage open communication between employees.
Open communication is key to quality culture. Employees should feel comfortable speaking
up about quality concerns, and management should be open to hearing feedback. Quality
issues should be addressed quickly and efficiently, and no one should be afraid to speak up
about quality concerns. If someone sees a problem, they should feel comfortable speaking
up. Employees should also be encouraged to share ideas on how to improve quality.

5. Integrate Quality Into Every Process

Every process in your company should be quality-focused. From product development to
customer service, quality should be integrated into every aspect of your business. That way,
employees and other levels of your company will become more quality-centric as they try to
achieve the highest possible quality in everything they do.
 Unit - I
6. Encourage Innovation
A quality culture encourages innovation. Employees should feel comfortable suggesting new
ideas, and management should be open to trying new things. Quality improvement is an
ongoing process, and innovation is part of it. Continual improvement is all about finding new
ways to promote a quality culture while improving every part of your business. So always try to
innovate and try out new things.

7. Seek End-User Feedback

We’ve already mentioned the importance of ensuring that your product will positively impact
the lives of your customers. Another great way to enforce a quality culture while ensuring
that your product meets quality standards is by actively seeking feedback from your end
users. After all, they’re the ones who are using your product, so their feedback is invaluable.
 Unit - I

Customer Focus and Satisfaction: Meeting Customer needs

and Expectations, Translating customer needs into
requirements (Kano Model) using customer complaints.
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Customer Focus:
 Customer focus means putting your customers' needs first. Customer-focused businesses
foster a company culture that enhances customer satisfaction and builds strong customer
relationships.
 Customer focus includes good customer service, listening (and implementing) customer
feedback, and building personalized customer experiences.
 To build a truly customer-focused culture, you first need to ensure you understand your
customers and their needs. This involves collecting disconnected sources of customer data
into a single, 360-degree view of your customer and, of course, being able to put that data
into action to deliver better experiences.
 Improving how you measure customer service, speeding up response times, making it easy
for customers to get in touch, and creating a customer-centric culture.
 According to Andrew Gibson there are three main levels of customer service. They are:
 The expected level
 Customer expectations are a set of ideas about a product, service, or brand that a customer
holds in their mind.
 The desired level,
 The type of service that customers hope to receive is termed as desired service. It is a
"wished for" level, a combination of what customers believe can and should be delivered in
the context of their personal needs.
 The unanticipated level.
 Unanticipated value for the customer is receiving a service or purchase experience that the
customer literally does not expect.
 Unit - I
Customer Satisfaction
 Customer satisfaction is defined as a measurement that determines how happy customers
are with a company's products, services, and capabilities.

 Customer satisfaction is defined as a measurement that determines how happy customers

are with a company's products, services, and capabilities. Customer satisfaction
information, including surveys and ratings, can help a company determine how to best
improve or changes its products and services.

 The Three Cs of customer satisfaction: Consistency, consistency, consistency. It may not

seem sexy, but consistency is the secret ingredient to making customers happy.

 The importance of customer satisfaction cannot be overstated. There is a direct correlation

between how happy customers are and how much money a business makes. Your
customer satisfaction score (CSAT) affects repeat purchase rates and customer loyalty,
word-of-mouth referrals, and helps to inform business decisions.

CSAT - Customer Satisfaction Score

 Customer Satisfaction Score, or CSAT score, is a customer experience metric that measures
happiness with a product, service, or customer support interaction through a customer
satisfaction survey that asks: “How satisfied were you with [company]?”
 Good CSAT scores can vary significantly by industry, however, a score above 75% is
typically considered good across most industry types.
 Unit - I
5 Levels of Customer Satisfaction
 Not Satisfied.
 This dissatisfaction will result in the consumer looking to other organizations to meet their
expressed needs.
 The risk with an unsatisfied customer is that they will share their dissatisfaction with other
potential customers in an attempt to protect people they know from a less than satisfactory
experience. No business wants that.
 Slightly Satisfied.
 A slightly satisfied customer may have some expectations that are being met but others are not.
Everything is so, so.
 This customer may return but may go somewhere else if offered a more appealing option.
 Satisfied.
 A satisfied customer is one who gets what they expect. Nothing more. Nothing less.
 There are no wows in the experience and they leave satisfied but not a smiling advocate.
 Very Satisfied.
 A very satisfied customer not only gets their needs met but may experience some unexpected
surprises that enhance their experience. The wow factor or surprise element.
 This is when customer satisfaction gets fun.
 Extremely Satisfied.
 An extremely satisfied customer is the ultimate goal.
 This level of satisfaction is a customer who has an experience that consistently exceeds all
expectations and has wow factors associated with every experience.
 These customers are so excited about the service they received that they become an advocate for
the organization and often recruit new customers because they want to share the positive
experience.
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Translating customer needs into requirements (Kano Model)

 The Kano model addresses the three types of requirements:

 Satisfying basic needs: Allows a company to get into the market.

 Satisfying performance needs: Allows a company to remain in the market.

 Satisfying excitement needs: Allows a company to excel, and to be world-class.

 Unit - I
KANO MODEL
It's commonly believed that customers don’t really know what they want; they have to be told.

The truth is customers do know what they want, but they may not be proficient at describing
their needs. By understanding the three types of customer needs and how to reveal them,
you’ll better know your customer’s true needs and how to address them.

The Kano model is useful in gaining a thorough understanding of a customer’s needs. You can
translate and transform the resulting verbatims using the voice of the customer table that,
subsequently, becomes an excellent input as the whats in a quality function deployment
(QFD) House of Quality.

The model involves two dimensions:

1. Achievement (the horizontal axis), which goes from the supplier didn’t do it at all to the
supplier did it very well.
2. Satisfaction (the vertical axis), which goes from total dissatisfaction with the product or
service to total satisfaction with the product or service.

Dr. Noriaki Kano isolated and identified three levels of customer expectations: that is, what it
takes to positively impact customer satisfaction. The figure below portrays the three levels of
need: expected, normal, and exciting.
 Unit - I
The Kano Model of Customer Satisfaction classifies product attributes based on how they are
perceived by customers and their effect on customer satisfaction. These classifications are
useful for guiding design decisions in that they indicate when good is good enough, and
when more is better.

The Kano Model (pronounced “Kah-no”) is an approach to prioritizing features on a product

roadmap based on the degree to which they are likely to satisfy customers.

The Kano Model is an analysis tool to explore and measure customer needs. It’s a way to
identify the basic needs of customers, as well as performance and excitement requirements.
This model is based on the view that functionality is not the only measure of how ‘good’ a
product. Customer emotions should also be taken into account.

The idea is that, as important as the basic functions of products or services are, adding new
attractive features will help with customer satisfaction. For instance, when buying a new car,
you’d expect the car to go faster when you accelerate. However, adding a virtual assistant
feature would increase customer satisfaction and make you stand out from competitors.
 Unit - I
Strengths of Kano Analysis
One of the biggest strengths of Kano is its ability to effectively identify the needs and desires
of customers.
 Kano provides a type of ‘route map’ for product and service development, identifying
priority features for improvement and attention.
 It can also be used for product introduction, as Kano helps us to understand which features
should be included to increase the chances of the product or service being a success.
 The analysis provided from Kano is extremely useful in terms of figuring out customers’
priorities and needs, whatever stage a product or service is at*.
 Kano builds on the Net Promoter Score (NPS), showing you what you need to focus on to
improve satisfaction. This step is often over looked.

Weaknesses of Kano Analysis

 As great as the results we receive are, analysing them is difficult and requires a high level of
knowledge to do it right.
 These surveys can be tedious and dull, there’s not much variety in terms of questions being
asked and depending on the number of features in question, the survey can get quite
exhausting (for this reason it is important to give as much time and effort at the start of the
project as the end).
 Unit - I
EXPECTED NEEDS
 Fully satisfying the customer at this level simply gets a supplier into the market. The entry
level expectations are the must level qualities, properties, or attributes.

 These expectations are also known as the dissatisfiers because by themselves they cannot
fully satisfy a customer. However, failure to provide these basic expectations will cause
dissatisfaction.

 Examples include attributes relative to safety, latest generation automotive components

such as a self-starter, and the use of all new parts if a product is offered for sale as
previously unused or new. The musts include customer assumptions, expected qualities,
expected functions, and other unspoken expectations.

NORMAL NEEDS
 These are the qualities, attributes, and characteristics that keep a supplier in the market.
These next higher level expectations are known as the wants or the satisfiers because they
are the ones that customers will specify as though from a list. They can either satisfy or
dissatisfy the customer depending on their presence or absence.

 The wants include voice of the customer requirements and other spoken expectations (see
table below).
 Unit - I
EXCITING NEEDS
 These are features and properties that make a supplier a leader in the market. The highest
level of customer expectations, as described by Kano, is termed the wow level qualities,
properties, or attributes.

 These expectations are also known as the delighters or exciters because they go well
beyond anything the customer might imagine and ask for. Their absence does nothing to
hurt a possible sale, but their presence improves the likelihood of purchase.

 Wows not only excite customers to make on-the-spot purchases but make them return for
future purchases. These are unspoken ways of delighting the customer. Examples include
heads-up display in a front windshield, forward- and rear-facing radars, and a 100,000 mile
warranty.

 Over time, as demonstrated by the arrow going from top left to bottom right in the Kano
model, wows become wants become musts. For example, automobile self-starters and
automatic transmissions.

 The organization that gets ahead and stays ahead constantly pulses its customers to identify
the next wows. The best wows, plenty of wants, and all the musts are what it takes to
become and remain an industry leader.
 Unit - I
KANO MODEL EXAMPLE: HOME BUYERS' NEEDS

Level of customer need Example related to home buyers

Expected quality I assume it meets all federal, state, and local building codes.
Normal quality — Spokens Three-car garage, three bedrooms, two baths …
Normal quality — unspokens I'll know it when I see it!
Exciting quality — Wow – a lifetime warranty on the roof!
Unit - I

Thanks