TOTAL QUALITY MANAGEMENT

UNIT- I
Definition:
 Total – Whole, entire, complete
 Quality – Excellence, class, meeting expectation
 Management – organising, administering, art of getting things done.

TQM is defined as both philosophy and a set of guiding principles that

represent the foundation of continuously improving organisation. It is
the application of quantitative methods and human resources to improve
all the process within the organisation and exceed customer needs now
and in the future.

Total Quality Management is an effective system for integrating the

quality development, quality maintenance and quality improvement
efforts of various groups in an organization continuously, so as to enable
marketing, engineering, production and service at the most economic
levels which allow for full customer satisfaction.

Historical Review of TQM

Industrialization led to mass production in which it led to the concept
of one product at a time to the assembly line of production. Though
workmanship was affected but mass production led to more job and
reduction in cost of the product and increase in quality, reduction of
defects etc.
1924 – After WWI, W.A. Sherwat of Bell Telephone statistical chart for
the control of various. Concept of sample tests were followed. It was a
failure in the initial stages.
1946 – ASQC American Society for Quality Control, now ASQ. Frequent
meetings, conferences and publications were made to public.
1950 – W.Edwards Demings his guidance and lecture to Japan engineers
transformed quality concepts in the organisation. His cycle PLAN-DO-
CHECK - ACT
1954 – Joseph M.Juran Concept of efficient and productive. Juran Trilogy
Quality planning – Quality Control – Quality Improvement
1960 – Quality control circles was formed. Zero defects concepts
1970 – Reactive approach to proactive approach. Shift from Japan to USA
1980 – SPC – Statistical Process Control. Concepts of parameter and
tolerance. Experiments 1990 – Concepts of certification of ISO, CMM etc

1
2000 – six sigma concept - Six Sigma stands for Six Standard Deviations
(Sigma is the Greek letter used to represent standard deviation in
statistics) from mean. Six Sigma methodology provides the techniques and
tools to improve the capability and reduce the defects in any process.

TQM Basic Concepts

1. Management Involvement – Participate in quality program,
develop quality council, direct participation
2. Focus on customer – who is the customer – internal and external,
voice of the customer, do it right first time and every time.
3. Involvement and utilisation of entire work force – All levels of
management
4. Continuous improvement – Quality never stops, placing orders,
bill errors, delivery, minimise wastage and scrap etc.
5. Treating suppliers as partners – no business exists without suppliers.
6. Performance measures – creating accountability in all levels

Barriers in TQM Implementation

1. Lack of commitment from top management – avoiding training for self
and employees, meetings
2. Lack of employee involvement – particularly at managerial level,
supportive attitude, trust
3. Lack of team work – Co-operation and co-ordination within workers.
4. Lack of customer oriented approach – Know the customer need, demand,
taste, shortcomings
5. Lack of attention to feedback and complaints –
6. Supplier control – in terms of materials, cost, quality, delivery etc
7. Review quality procedures – up gradation, correct past errors. Learn from
experience

Five Pillars of TQM are,

· Product
· Process
· System
· People
· Leadership

2
Benefits of TQM :
Customer satisfaction oriented benefits :
1. Improvement in product quality
2. Improvement in product design
3. Improvement in production flow
4. Improvement in employee morale and quality consciousness
5. Improvement in product service
6. Improvement in market place acceptance

Economic improvement oriented benefits :

1. Reduction in operating costs
2. Reduction in operating losses
3. Reduction in field service costs
4. Reduction in liability exposure

Principles of TQM :
 Visionary leadership
 Customer-driven excellence
 Organizational and personal learning
 Valuing employees and partners
 Agility
 Focus on the future
 Managing for innovation
 Management by fact
 Public responsibility
 Focus of results and creating values
 Systems perspective

Quality – When a product or service meets or exceeds expectation

considering the intended use and the selling price.

Quality = performance / expectation

Definition by ISO 9000:2000 It if defined as the degree to which a set of
inherent characteristics fulfils requirement.
Degree – good, excellent, bad Inherent – existing, within, natural
Requirement – need or expectation

3
 Dimensions of quality
1. Performance - Fulfilment of primary requirement
2. Features - Additional things that enhance performance
3. Conformance - Meeting specific standards set by the industry
4. Reliability - Consistence performance over a period of time
5. Durability - Long life and less maintenance
6. Service - Ease of repair, guarantee, and warranty
7. Response - Dealer customer relationship, human interface
8. Aesthetics - exteriors, packages
9. Reputation - Past performance, ranking, branding
Quality Policy:
The Quality Policy is a guide for everyone in the organization as to how
they should provide products and service to the customers. The common
characteristics are :
 Quality is first among equals.
 Meet the needs of the internal and external customers.
 Equal or exceed the competition.
 Continually improve the quality.
 Include business and production practices. Utilize the entire work
force

Quality Cost Analysis

The main language of corporate management is money, so the concept of
studying quality-related costs is essential. The quality guru, Joseph Juran has
been advocating the analysis of quality-related costs since 1951. He give his
theory of quality improvement which is commonly known as Juran Trilogy.

Quality costs: The costs that are associated with preventing, finding, and
correcting defective work are Quality Costs. Normally, these costs are running
at 20% – 30% of sales.
Many of these costs can be significantly reduced or completely avoided. One of
the key functions of a Quality Analysis / Engineer is the reduction of the total
cost of quality associated with a product / service.

Below are the main Quality Costs:

 Prevention Costs
 Appraisal Costs
 Failure Costs
 Internal Failure Costs
 External Failure Costs

4
Total Cost of Quality can be calculated as the sum of costs:
Prevention + Appraisal + Internal Failure + External Failure
Prevention Costs: Costs of activities that are specifically designed to prevent
poor quality which include
 Coding errors
 Design errors
 Mistakes in the user manuals
 Deadly documented or unmaintainably complex code
Most of the prevention costs don’t fit within the Testing Group’s budget. This
money is spent by the programming, design, and marketing staffs.
Appraisal Costs: Costs of activities designed to find quality problems, such as
code inspections and any type of testing.
Design reviews are part of prevention and part appraisal. Please note the
following two points:
1. To the degree that you’re looking for errors in the proposed design itself
when you do the review, you’re doing an appraisal.
2. To the degree that you are looking for ways to strengthen the design, you are
doing prevention.
Failure Costs: Costs that result from poor quality, such as the cost of fixing
bugs and the cost of dealing with customer complaints.
Internal Failure Costs: Failure costs that arise before your company supplies
its product to the customer. Along with costs of finding and fixing bugs are
many internal failure costs borne by groups outside of Product Development. If
a bug blocks someone in your company from doing his or her job, the costs of
 the wasted time
 the missed milestones
 and the overtime to get back onto schedule
are all internal failure costs.
The UI issues / bugs / defects – the ones that will be fixed later – can make it
hard for these staff members to take accurate screen shots. Delays caused by
these minor design flaws, or by bugs that block a packaging staff member from
creating or printing special reports, can cause the company to miss its printer
deadline.

External Failure Costs: External failure costs are much higher. The costs that
arise after your company supplies the product to the customer such as
- Customer service costs
- Cost of patching a released product distributing the patch
It is much cheaper to fix problems before shipping the defective product to
customers.

5
Examples of Prevention Costs:
- Fault-tolerant design
- Defensive programming
- Usability analysis
- Clear specification
- Staff training
- Requirements analysis
- Early prototyping
- Accurate internal documentation
- Evaluation of the reliability of development tools

Examples of Appraisal Costs:

- Training testers
- Beta testing
- Test automation
- Usability testing
- Design review
- Code inspection
- Glass box testing
- Black box testing

Examples of Internal Failure Costs:

- Training testers
- Beta testing
- Test automation
- Usability testing
- Design review
- Code inspection
- Glass box testing
- Black box testing

Examples of External Failure:

- Lost sales
- Lost customer goodwill
- Discounts to resellers to encourage them to keep selling the product
- Warranty costs
- Liability costs
- Penalties
- Technical support calls
- Preparation of support answer books

6
 - Investigation of customer complaints
- Refunds and recalls
- Coding / testing of interim bug fix releases
- Shipping of updated product
- All other costs imposed by law

Customer perception of quality

Before 1988 – Performance, Prize and service After 1989 – Performance,
service and prize ASQ – American Society for Quality
1. Performance – availability (ready for use), reliability (free from
failure), maintainability
2. Features – psychological and technical. Added feature along with
main usage
3. Service – intangible, made up of many small things
4. Warranty – Vs guarantee. Customer feels comfortable with this
5. Price – value for money, ready to pay at the same time comparative
study to be done
6. Reputation – Branding merges with quality. Good exp reaches 6 bad
reaches 15
Service Quality
Shift in focus from manufacturing industry to service industry and the
services involved in manufacturing organization.
Customer service is the set of activities an organization uses to win, attract
and retain customers. It can be provided before, during and after the sale
of the product.

Elements of customer service

Organization
1. Identify each segment – where the organization needs to concentrate on
quality
2. Write down requirement – Proper documentation of quality policy in the
form of a handbook
3. Communicate requirements – Inform its importance to all levels in the
organisation
4. Organize process – create a systematic process as it is ongoing and never
ending process
5. Organize physical spaces – aesthetics, atmosphere, room space,
recreation, wifi etc

7
Customer Care – Henry Ford – The boss just handles the cash it is
the customer who pays your salary
1. Meet the customers expectation – treat all customers alike, respond
quickly
2. Get the customer‘s point of view – think in the point of view of a customer
3. Deliver what is promised – keep up promise at any cost
4. Make the customer feel valued – customer must feel that due respect and
importance is given to him
5. Respond to all complaints – minimize complaints and eradicate similar
and repeated complaints.
6. Over-respond to customer – make him feel he is cloud nine
7. Provide clean and comfortable reception area – cleanliness, spacious,
dress code, weather etc

Communication – All forms of communication written, verbal, advt,

web site must prove quality
1. Optimize trade off between time and personal attention
2. Minimize the number of contact points – channels and levels
3. Provide pleasant and knowledgeable enthusiastic employees
4. Write document in customer friendly language – simple and point blank

Front-line people – The people who have first and direct contact or
interaction with the customer
1. Hire people who like people – train groom them
2. Challenge them to develop better methods – small changes in packing,
billing etc
3. Give them authority to solve problems – give discounts, free gifts etc
4. Serve them as internal customers
5. Make sure they are adequately trained – written and oral communication,
body language etc
6. Recognize and reward performance - Nordstorm example obsess with the
customer

Customer Retention
- It is the final result of customer satisfaction and customer loyalty
- Most cases what customer says or feels may vary from actual
consumption or purchase
- Customer must refer more customers and increase the revenue
- External research must be done to feel the pulse of the customer
- Employee retention is proportional customer retention

8
Quality cost:
During the 1950‘s the concept of ―Quality Cost‖ emerged. Different
people assigned different meanings to the term. Some people equated
quality cost with the cost of attaining quality; some people equated the
term with the extra incurred due to poor quality. But, the widely
accepted thing is ―Quality cost is the extra cost incurred due to poor
or bad quality of the product or service‖.

Categories of Quality Cost :

Many companies summarize quality costs into four broad categories. They
are,
a) Internal failure costs - The cost associated with defects that are found
prior to transfer of the product to the customer.
b) External failure costs - The cost associated with defects that are
found after product is shipped to the customer.
c) Appraisal costs - The cost incurred in determining the degree of
conformance to quality requirement.
d) Prevention costs - The cost incurred in keeping failure and appraisal
costs to a minimum.

9
Advantages of TQM:
(i) Sharpens Competitive Edge of the Enterprise:
TQM helps an organisation to reduce costs through elimination of waste,
rework etc. It increases profitability and competitiveness of the enterprise; and
helps to sharpen the organisation’s competitive edge, in the globalized economy
of today.
(ii) Excellent Customer Satisfaction:
By focusing on customer requirements, TQM makes for excellent customer
satisfaction. This leads to more and more sales, and excellent relations with
customers.
(iii) Improvement in Organisational Performance:
Through promoting quality culture in the organisation, TQM lead to
improvements in managerial and operative personnel’s performance.
(iv) Good Public Image of the Enterprise:
TQM helps to build an image of the enterprise in the minds of people in society.
This is due to stress on total quality system and customers’ requirements,
under the philosophy of TQM.
(v) Better Personnel Relations:
TQM aims at promoting mutual trust and openness among employees, at all
levels in the organisation. This leads to better personnel relations in the
enterprise.

10
1) Emphasizing the needs of the market:
QM helps in highlighting the needs of the market. Its application is universal
and helps the organization to identify and meet the needs the market in a
better way.
2) Assures better quality performance in every sphere of activity:
Adverse and non-participative attitudes of the employees are the biggest
obstacles in the organization success, growth and advancement.
TQM stresses on bringing attitudinal changes and improvements in the
performance of employees by promoting proper work culture and effective team
work
3) Helps in checking non-productive activities and waste:
Every organization aims at improving productivity as well as reduction in cost
so as to result in increase in profitability.
Under TQM, quality improvement teams are constituted to reduce waste and
inefficiency of every king by introducing systematic approach.
4) Helpful in meeting the competition:
TQM techniques are greatly helpful in understanding the competition and also
developing an effective combating strategy. Due to the cut throat competition,
the very survival of many organizations has become very vital issue.
5) It helps in developing an adequate system of communication:
Faulty and inadequate communication and improper procedures act as
stumbling blocks in the way of proper development of an organization.
It results in misunderstanding, low- productivity, poor quality, duplication of
efforts and low morale. QM techniques bind together members of various
related sections, departments and levels of management for effective
communication and interaction.

11
Limitations of TQM:
1) Production Disruption
Implementing a Total Quality Management system in a company requires
extensive training of employees and these requires them to take some time of
their day to day work duties.
While the improvements do reduce lead time, eliminate waste and improve
productivity, the beginning stages of implementing Total Quality Management
in an organization can reduce worker output.
2) Employee Resistance
Total Quality Management requires change in mindset, attitude and methods
for performing their jobs. When management does not effectively communicate
the team approach of Total Quality Management, workers may become fearful,
which leads to employee resistance. When workers resist the program, it can
lower employee morale and productivity for the business.
3) Quality is Expensive
TQM is expensive to implement. Implementation often comes with additional
training costs, team-development costs, infrastructural improvement costs,
consultant fees and the like.
4) Discourages Creativity
TQM focus on task standardization to ensure consistency discourages
creativity and innovation. It also discourages new ideas that can possibly
improve productivity

Barriers to TQM.
There are a number of common potential setbacks in the introduction
and implementation of a total quality management system. These can arise due
to the commitment of senior management, the existing culture within an
organization, the number and focus of teams, the ability and desire to truly
engage all employees, the focus of the TQM effort and commitment to
continuous education and training.

12
 1. Senior Management commitment.
The biggest single reason for a total quality program to fail to deliver
significant benefits to an organization is poor leadership by senior
management. Senior management must lead by example and systematically
seek to implement and continually improve all the required elements of TQM.
Senior management cannot stand back and delegate the TQM effort, they must
enthusiastically demonstrate an understanding, appreciation and buy-in for
total quality in their daily actions. Where problems arise on a daily basis,
senior management must insist on fact based analysis. They must consistently
recognise positive team performance. They must encourage all employees to
participate and contribute to organizational performance improvement. Failure
by senior management to live TQM on a daily basis, will send a clear message
to employees that total quality is not truly valued within the organization.

TQM Tools and Techniques. Information and Training presentation.

2. Culture.
The existing culture within an organization is critical to the effective
implementation of a positive, effective, total quality approach to improvement.
A culture of mistrust, them versus us, change resistance, etc., will stall and
ultimately stop the implementation of TQM. The culture within an organization
must be supportive of positive change and encourage open two-way
communications. TQM may force management to plan efforts towards culture
change.

13
3. Team Mania.
Teamwork is a critical part of TQM, however putting people in teams
before the TQM culture has been developed can result in poor results. Too
many teams can also be a real problem. Team attendance needs to be carefully
monitored, as often the same people end up on a range of teams, will little time
left in their working day to truly contribute to the team, while in parallel, many
other employees, never sit on a team nor or asked to contribute. The objective
must be to harness the capabilities of all employees. Therefore, as many
employees as possible must in some way contribute to improvement activities.
This may be via partaking on teams. However, all teams must be carefully
considered, with clear objectives, properly considered membership, clear end
goals and appropriate recognition for positive efforts where positive results are
delivered.
4. Deployment Process.
It is important to get all key groups on board (e.g. all managers,
employees, suppliers) before rolling out TQM projects. No single group of
stakeholders can deliver total quality performance, nor can TQM be achieved
while missing a key stakeholder group.
5. Taking too narrow or too broad an approach.
Unless the quality program is tailored to fit the organization, problems
will arise during implementation. Careful consideration needs to be given to
the scope of the TQM program, where does the organization see the status of
TQM in say one, two, five years time? TQM is a long term project. It is entirely
reasonable to commence TQM via small steps. Maybe the first starting point
will be to develop the use of analytical tools such as cause and effect, fault
tree analysis, hazop analysis, etc.. Then when these start to get applied, the
next step may be to introduce employee recognition, then improvement teams,
etc.. The plan for TQM should be developed with all employees and shared with
all employees, along with the planned milestone targets.

6. Training & Education.

A critical component in any TQM program. What will be the approach to
staff development? This also sits with plans to improve delegation and decision
making. Developing more capable staff, can also motivate the staff, however, as
staff competence is developed, so too must the opportunities available to utilize
new skills be made available to those same staff, otherwise the outcome of
training can actually be lower levels of motivation. Again, there should be a
clear plan for education and training which in integral with the overall TQM
program.

14
The barriers to TQM implementation and Deming Philosophy
 Lack of management commitment
 Inability to change organizational culture
 Improper planning
 Lack of continuous training and education
 Incompatible organizational structure and isolated individuals and
departments
 Ineffective measurement techniques and lack of access to data and
results.
 Paying inadequate attention to internal and external customers.
 Inadequate use of empowerment and teamwork

15
 Unit II
5-S PRINCIPLES

The 5S framework was originally developed by just-in-time expert and

international consultant Hiroyuki Hirano. The 5S framework is an extension
of Hirano's earlier works on just-in-time production systems. The 5Ss
represent a simple "good housekeeping" approach to improving the work
environment consistent with the tenets of Lean Manufacturing System.

It promotes daily activity for continuous improvement. It fosters efficiency

and productivity while improving work flow. It encourages a proactive
approach that prevents problems and waste before they occur. It provides a
practical method for dealing with the real problems that workers face every
day. And it fits with a facility's other efforts, such as total preventive
maintenance, just-in-time manufacturing, pollution prevention, safety
initiatives, and lean manufacturing efforts.

SEIRI / SORT / CLEANUP:

The first step of the "5S" process, Seiri, refers to the act of throwing away all
unwanted, unnecessary, and unrelated materials in the workplace. People
involved in Seiri must not feel sorry about having to throw away things. The
idea is to ensure that everything left in the workplace is related to work.
Even the number of necessary items in the workplace must be kept to its
absolute minimum.
There are two main objectives of Seiri; first is the simplification of tasks and
effective use of space. In performing Seiri, this simple guideline is a must:
1. Separate needed items from unneeded items.
2. Remove unneeded items from working areas.
3. Discard the items never used.
4. Store items not Item not needed now.
5. Remove all excess items from working areas, including work pieces,
supplies, personal items, tools, instruments, and equipment.
6. Use red tag to get rid of unneeded items.
7. Store items needed by most people in a common storage area.
8. Store items only needed by each individual in his/her own working
area.
9. Organize working / storage area.

SEITON / SET IN ORDER / ARRANGING:

Seiton, or orderliness, is all about efficiency. This step consists of putting

everything in an assigned place so that it can be accessed or retrieved
quickly, as well as returned in that same place quickly. If everyone has
quick access to an item or materials, work flow becomes efficient, and the
worker becomes productive. Every single item must be allocated its own

16
place for safekeeping, and each location must be labeled for easy
identification of what it's for.

Its objective includes; the needed items can be easily found, stored and
retrieved, supports efficiency and productivity, First-in first-out (FIFO), and
save space and time.

In performing Seiton, follow these guidelines:

1. A place for everything and everything in its place.
2. Place tools and instructional manual close to the point of use.
3. Store similar items together. Different items in separate rows.
4. Don't stack items together. Use rack or shelf if possible.
5. Use small bins to organize small items.
6. Use color for quickly identifying items.
7. Clearly label each item and its storage areas (lead to visibility).
8. Use see-through cover or door for visibility.
9. Use special designed cart to organize tools, jigs, measuring devices,
etc., that are needed for each particular machine.

SEISO / SHINE / NEATNESS

Seiso, the third step in "5S", says that 'everyone is a janitor.' Seiso consists
of cleaning up the workplace and giving it a 'shine'. Cleaning must be done
by everyone in the organization, from operators to managers. It would be a
good idea to have every area of the workplace assigned to a person or group
of persons for cleaning. Seiso is not just cleaning, but a whole attitude that
includes ensuring everything is in perfect condition. Everyone should see
the 'workplace' through the eyes of a visitor - always thinking if it is clean
enough to make a good impression.

Its objective includes; cleanliness ensures a more comfortable and safe

working place, cleanliness will lead to visibility so as to reduce search time
and cleanliness ensures a higher quality of work and products.
Follow these guidelines in performing Seiso:

1. Use dust collecting covers or devices to prevent possible dirt or reduce

the amount of dirt.
2. Investigating the causes of dirtiness and implement a plan to
eliminate the sources of dirt.
3. Cover around cords, legs of machines and tables such that dirt can be
easily and quickly removed.
4. Operators clean their own equipment and working area and perform
basic preventive maintenance.
5. Keep everything clean for a constant state of readiness.

17
SEIKETSU / SYSTEMIZE / DISCIPLINE:

The fourth step of "5S", or seiketsu, more or less translates to 'standardized

clean-up'. It consists of defining the standards by which personnel must
measure and maintain 'cleanliness'. Seiketsu encompasses both personal
and environmental cleanliness. Personnel must therefore practice 'seiketsu'
starting with their personal tidiness. Visual management is an important
ingredient of seiketsu. Color- coding and standardized coloration of
surroundings are used for easier visual identification of anomalies in the
surroundings. Personnel are trained to detect abnormalities using their five
senses and to correct such abnormalities immediately.

The guidelines include:

1. Removing used, broken, or surplus items from the work area

2. Making safety a prime requirement by paying attention to noise,
fumes, lighting, cables, spills, and other aspects of the workplace
environment
3. Checking that items are where they should be
4. Listening to the "voice" of the process and being alert to things such
as unusual noises
5. Ensuring that there is a place for everything and that everything is in
its place
6. Wearing safe working apparel and using safe equipment
7. Minimizing all waste and the use of valuable resources such as oil,
air, steam, water, and electricity

SHITSUKE / SUSTAIN / ON-GOING IMPROVEMENT:

The last step of "5S", Shitsuke, means 'Discipline.' It denotes commitment

to maintain orderliness and to practice the first 4 S as a way of life. The
emphasis of shitsuke is elimination of bad habits and constant practice of
good ones. Once true shitsuke is achieved, personnel voluntarily observe
cleanliness and orderliness at all times, without having to be reminded by
management.

The characteristic of 5S tends to overlap significantly rather than cover very

different subjects. Rather than worry about what fits into Seiri and what fits
into Seiton, use them to reinforce each other and implement the whole
thing.

18
 QUALITY CIRCLE

Quality Circle is a small group of 6 to 12 employees doing similar work

who voluntarily meet together on a regular basis to identify improvements
in their respective work areas using proven techniques for analysing and
solving work related problems coming in the way of achieving and
sustaining excellence leading to mutual upliftment of employees as well as
the organisation. It is "a way of capturing the creative and innovative
power that lies within the work force".

CONCEPT

The concept of Quality Circle is primarily based upon recognition of the

value of the worker as a human being, as someone who willingly activises
on his job, his wisdom, intelligence, experience, attitude and feelings. It is
based upon the human resource management considered as one of the
key factors in the improvement of product quality & productivity. Quality
Circle concept has three major attributes:

CONTRIBUTIONS OF DEMINGS
Deming's work and writing constitute not so much a technique, as a
philosophy of management, Total Quality Management, that focuses on quality
and continuous improvement but which has had - justifiably - a much wider
influence.

Here we will consider Deming's interest in variation and his approach to

systematic problem solving which led on to his development of the 14 points
which have gained widespread recognition and which are central to the quality
movement and his philosophy of transformational management. Deming’s
seven deadly diseases of management and his use and promotion of the PDCA
cycle, known to many as the Deming Wheel, are described below:

Variation and problem solving

The key to Deming's ideas on quality lies in his recognition of the importance of
variation. In Out of the crisis he states:

'The central problem in management and in leadership is failure to understand

the information in variation'.

19
 Deming was preoccupied with why things do not behave as predicted. All
systems (be they the equipment, the process or the people) have variation, but
he argued that it is essential for managers to be able to distinguish between
special and common causes of variation. He developed a theory of variation -
that special causes of variation are usually easily attributable to quickly
recognisable factors such as changes of procedure, change of shift or operator
etc, but that common causes will remain when special causes have been
eliminated (normally due to design, process or system). These common causes
are often recognised by workers, but only managers have the authority to
change them to avoid repeated occurrence of the problem. Deming estimated
that management was responsible for more than 85% of the causes of
variation. This formed his central message to the Japanese.

Demings 14 Points Summarised

1. Create constancy of purpose and continual improvement
2. Adopt the new (Japanese) philosophy – by management and workers alike.
3. Do not depend on (quality) inspection – build quality into the product and
process
4. Choose quality suppliers
5. Improve constantly – to reduce variation in all aspects
6. Training on the job – for workers and management.
7. Leadership not supervision – to get people to do a better job, not just meet
targets.
8. Eliminate fear – encourage two-way communication, encourage employees
9. Break down internal barriers – department‘s are ―internal customers‖
10. Eliminate slogans (exhortations) – processes make mistakes not people.
11. Eliminate numerical targets – management by objectives not numbers
12. Remover barriers to worker satisfaction – including annual appraisals
13. Encourage self improvement and education for all
14. Everyone is responsible for continual improvement in quality and
productivity – particularly top management

20
 CONTRIBUTIONS OF JURAN TRILOGY
The Trilogy consists of three sequential and logical groups of activities:
– Quality Planning
– Quality Control
– Quality Improvement All three processes are universal
– Applied to a particular process
– Performed by top management or by middle management

Juran Trilogy:
A systematic and comprehensive system for break-through quality
improvements Quality Defined: meet customer needs and freedom from
deficiencies
Trilogy Components
 Quality Planning – discover customer needs and deficiencies and design
adequate processes
 Quality Control -- compare actual performance to goals and take action
on the differences
 Quality Improvement -- the attainment of unprecedented levels of
performance.

CONTRIBUTIONS OF CROSBY
Crosby's approach to quality was unambiguous. In his view, good, bad, high,
and low quality are meaningless concepts in the abstract; the meaning of
quality is "conformance to requirements." What that means is that a product
should conform to the requirements that the company has itself established
based on its customers' needs. He also believed, that the prime responsibility
for poor quality lies with management, not with the workers. Management sets
the tone for the quality initiative from the top.
Nonconforming products are ones that management has failed to specify or
control. The cost of nonconformance equals the cost of not doing it right first
time, and not rooting out any defects in processes.

"Zero defects" does not mean that people never make mistakes, but that
companies should not begin with "allowances" or substandard targets with
mistakes as an inbuilt expectation. Instead, work should be seen as a series of
activities or processes, defined by clear requirements and carried out to
produce identified outcomes. Systems that allow things to go wrong and that
result in those things having to be done again can cost organizations between
20% and 35% of their revenues, in Crosby's estimation. His seminal approach
to quality was set out in Quality is Free.

21
1. Management commitment it: the need for quality improvement must be
recognized and accepted by management, who then draw up a quality
improvement program with an emphasis on the need for defect prevention.
Quality improvement equates to profit improvement. A quality policy is needed
which states that "...each individual is expected to perform exactly like the
requirement or cause the requirement to be officially changed to what we and
the customer really need."
2. The quality improvement team: representatives from each department or
function should be brought together to form a quality improvement team. Its
members should be people who have sufficient authority to commit the area
they represent to action.
3. Quality measurement: the status of quality should be determined throughout
the company. This means establishing and recording quality measures for
each area of activity in order to show where improvement is possible and
where corrective action is necessary. Crosby advocated delegation of this task
to the people who actually do the job, thus setting the stage for defect
prevention on the job, where it really counts.
4. The cost of quality evaluation: the cost of quality is not an absolute
performance measurement, but an indication of where the action necessary to
correct a defect will result in greater profitability.
5. Quality awareness: this involves making employees aware of the cost to the
company of defects, through training and information, and the provision of
visible evidence of the results of a concern for quality improvement. Crosby
stresses that this sharing process is a key, or even the key, step in the
progress of an organization toward quality.
6. Corrective action: discussion of problems will result in the finding of solutions
and also bring to light other elements that are in need of improvement. People
need to see that problems are regularly being resolved. Corrective action
should then become a habit.
7. Establishing an ad hoc committee for the zero defects program: zero
defects is not a motivation program: its purpose is to communicate and instill
the notion that everyone should do things right first time.
8. Supervisor training: all managers should undergo formal training on the
Fourteen Steps before they are implemented. Managers should understand
each of the Fourteen Steps well enough to be able to explain them to their
people.
9. Zero defects day: it is important that the commitment to zero defects as the
performance standard of the company makes an impact, and that everyone
gets the same message in the same way. Zero defects day, when supervisors
explain the program to their people, should make a lasting impression as a

22
 "new attitude" day.
10. Goal setting: all supervisors ask their people to establish specific,
measurable goals that they can strive for. Usually, these comprise 30-, 60-,
and 90-day goals.
11. Error cause removal: employees are asked to describe, on a simple, one-page
form, any problems that prevent them from carrying out error-free work.
Problems should be acknowledged and begin to be addressed within 24 hours
by the function or unit to which the begin to grow more confident that their
problems will be attended to and dealt with.
12. Recognition: it is important to recognize those who meet their goals or
perform outstanding acts with a prize or award, although this should not be in
financial form. The act of recognition itself is what is important.
13. Quality councils: the quality professionals and team leaders should meet
regularly to discuss improvements and upgrades to the quality program.
14. Doing it over again: during the course of a typical program lasting from 12 to
18 months, turnover and change will dissipate much of the educational process.
It is important to set up a new team of representatives and begin the program
again from the beginning, starting with zero defects day. This "starting over
again" helps quality to become ingrained in the organization

CONTRIBUTIONS OF MASAAKI IMAI

Masaaki Imai is Founder of KAIZEN Institute (KI), which was established in
Switzerland (1985) to help companies introduce KAIZEN® concepts, systems,
and tools. KI (also now known as KAIZEN Institute Consulting Group- KICG)
has offices in over 30 countries around the globe. Over the last 30+ years, Mr.
Imai has held lectures on KAIZEN, Lean and other related management
subjects, as well as having consulted with global companies (outside of Japan)
and assisting them in their process of introducing change and continual
improvement. KAIZEN Institute dispatches both local and global consultants,
who are corporate managers and academics and considered experts in the
various technicalities of KAIZEN, to various assignments to work closely with
the local KAIZEN consultants. Mr. Imai‘s role has been oneof integrating
various KAIZEN management practices, such as Just-in-time, TQM, and TPM,
into the cultural environment of client companies. KAIZEN Institute regularly
sponsors KAIZEN Tours, within Japan, Europe and other strategic locations

23
 where best practices can be found. .

Kaizen is defined as making ―continuous improvement‖ - slow, incremental

but constant. Western way of pragmatic approach ―why-fix-it-if-it-ain‘t-
broke‖ Kaizen extends a more optimistic philosophical view: ―Everything—
even if it ain‘t broke—can be made better!‖ "kai― > Means "change" or
"the action to correct" "zen― > means "good― Importance is given to the
process not the results, as Japanese believe that good process will deliver good
results.

i. Quality Circle is a form of participation management.

ii. Quality Circle is a human resource development technique.
iii. Quality Circle is a problem solving technique.

TAGUCHI’S CONTRIBUTION
Genichi Taguchi is a Japanese quality expert, known for the Quality Loss
Function and for methodologies to optimise quality at the design stage –
―robust design‖. Taguchi received formal recognition for his work
including Deming Prizes and Awards.

Genichi Taguchi considers quality loss all the way through to the
customer, including cost of scrap, rework, downtime, warranty claims and
ultimately reduced market share.

Genichi Taguchi's Quality Loss Function

The Quality Loss Function gives a financial value for customers' increasing
dissatisfaction as the product performance goes below the desired target
performance. Equally, it gives a financial value for increasing costs as product
performance goes above the desired target performance. Determining the
target performance is an educated guess, often based on customer surveys and
feedback.
The quality loss function allows financial decisions to be made at the
design stage regarding the cost of achieving the target performance.

1. Cause-and-effect diagram (also called Ishikawa or fishbone diagrams): Identifies

many possible causes for an effect or problem and sorts ideas into useful

24
categories.
Cause-and-Effect Diagrams - 1943 by Mr. Kaoru Ishikawa at the University of
Tokyo
Purpose: One important part of process improvement is continuously striving to
obtain more information about the process and it's output. Cause-and-effect
diagrams allow us to do not just that, but also can lead us to the root cause, or
causes, of problems.

Constructing the Cause-and-Effect Diagram:

Step 1: Select the team members and a leader. Team members knowledgeable
about the quality. Team members focus on the problem under investigation.
Step 2: Write the problem statement on the right hand side of the page, and draw a
box around it with an arrow running to it. This quality concern is now the effect.
Step 3: Brain-storming. The team members generate ideas as to what is causing
the effect.
Step 4: This step could be combined with step 3. Identify, for each main cause, its
related sub-causes that might affect our quality concern or problem (our Effect).
Always check to see if all the factors contributing to the problem have been
identified. Start by asking why the problem exists.
Step 5: Focus on one or two causes for which an improvement action(s) can be

25
 developed using other quality tools such as Pareto charts, check sheets, and other
gathering and analysis tools.

2. Check sheet: A structured, prepared form for collecting and analyzing data; a
generic tool that can be adapted for a wide variety of purposes.

The check sheet is a simple document that is used for collecting data in real-time
and at the location where the data is generated. The document is typically a blank
form that is designed for the quick, easy, and efficient recording of the desired
information, which can be either quantitative or qualitative. When the information
is quantitative, the check sheet is sometimes called a tally sheet.
A defining characteristic of a check sheet is that data is recorded by making marks
(“checks”) on it. A typical check sheet is divided into regions, and marks made in
different regions have different significance. Data is read by observing the location
and number of marks on the sheet. 5 Basic types of Check Sheets:
 Classification: A trait such as a defect or failure mode must be classified
into a category.
 Location: The physical location of a trait is indicated on a picture of a part
or item being evaluated.
 Frequency: The presence or absence of a trait or combination of traits is
indicated. Also number of occurrences of a trait on a part can be indicated.
 Measurement Scale: A measurement scale is divided into intervals, and
measurements are indicated by checking an appropriate interval.

26
 Check List: The items to be performed for a task are listed so that, as each
is accomplished, it can be indicated as having been completed.

3. Control chart: Graph used to study how a process changes over time. Comparing
current data to historical control limits leads to conclusions about whether the
process variation is consistent (in control) or is unpredictable (out of control,
affected by special causes of variation).
Control charts have long been used in manufacturing, stock trading algorithms,
and process improvement methodologies like Six Sigma and Total Quality
Management (TQM). The purpose of a control chart is to set upper and lower
bounds of acceptable performance given normal variation. In other words, they
provide a great way to monitor any sort of process you have in place so you can
learn how to improve your poor performance and continue with your successes.
The control chart serves to “sound the alarm” when a process shifts (for instance, a
machine suddenly breaking on a factory floor) or if someone has a breakthrough
that needs to be documented and standardized across the larger organization.
Simply put (without taking anomalies into consideration).

4. Histogram: The most commonly used graph for showing frequency distributions,
or how often each different value in a set of data occurs.

27
Usage of histogram:
Let’s see usage of Histogram in context of “Plan Quality Management” and “Control
Quality” for your The Project Management Professional (PMP examination.
 In “Plan Quality Management” a Histogram serves as a preventive approach to
improve processes. We use historical data to identify categories of causes
effecting most. Based on effecting most categories, we select processes to
improve. For example due to higher frequencies in IES, MCC and EDR, we may
select improvements in “Collect Requirement”, and “Define Scope” processes.

28
  Using “Control Quality” we identify causes of poor performance help in
improving processes and their work products. In this way, causes of poor
performance analysis make Histogram a powerful tool to take corrective actions.

5. Pareto chart: A bar graph that shows which factors are more significant.
Pareto analysis is a technique for recording and analysing information relating to a
problem or cause, which easily enables the most significant aspects to be
identified.
A Pareto diagram is a special form of vertical bar chart, or column chart, which
allows the information to be visually displayed.
When to use it
 Separating the 'vital few' from the 'useful many' problems, (80/20 rule).
 Selecting major problem areas
 Identifying major effects and causes
What does it achieve?
“First things first" is the thought behind the Pareto diagram; the properly
constructed diagram should suggest on which error or activity resources should be
used first to make the best improvement.
Very often the simple process of arranging data may suggest something of
importance that would otherwise have gone unnoticed. Selecting classifications,
tabulating data, ordering data, and constructing the Pareto diagram have often
served a useful purpose in problem investigation.
The communication process between people takes on many forms, and Pareto
diagrams are a form of language using a display in a commonly understood format.
The continued use of the Pareto diagram enhances communication between
members of staff and through all levels of management.
Key steps
 List the activities to be analysed
 Calculate totals
 Order totals
 Draw the Pareto diagram
 Interpret results
Pareto Diagram example

29
 Difference between Pareto Chart and Histogram:

Histogram Pareto Chart

A Pareto chart is a specific type of histogram

that represents the causes of problems by
The Histogram is a kind of bar their influence. It is a useful tool to prioritize
chart showing a distribution corrective action as errors with the greatest
of variables or causes of impact displayed in descending order of
problems. frequency.

A histogram represents cause

of a problem as a column
and the frequency of each In Pareto chat, an arc representing the
cause of problem as the cumulative percentage of frequencies of
height of the column. causes also included.

6. Scatter diagram: Graphs pairs of numerical data, one variable on each axis, to
look for a relationship.

30
 Also called: scatter plot, X-Y graph
The scatter diagram graphs pairs of numerical data, with one variable on each
axis, to look for a relationship between them. If the variables are correlated, the
points will fall along a line or curve. The better the correlation, the tighter the
points will hug the line. This cause analysis tool is considered one of the seven
basic quality tools.
WHEN TO USE A SCATTER DIAGRAM
 When you have paired numerical data
 When your dependent variable may have multiple values for each value of
your independent variable
 When trying to determine whether the two variables are related, such as:
 When trying to identify potential root causes of problems
 After brainstorming causes and effects using a fishbone diagram to
determine objectively whether a particular cause and effect are related
 When determining whether two effects that appear to be related both occur
with the same cause
 When testing for autocorrelation before constructing a control chart
SCATTER DIAGRAM PROCEDURE
1. Collect pairs of data where a relationship is suspected.
2. Draw a graph with the independent variable on the horizontal axis and the
dependent variable on the vertical axis. For each pair of data, put a dot or a symbol
where the x-axis value intersects the y-axis value. (If two dots fall together, put
them side by side, touching, so that you can see both.)

31
3. Look at the pattern of points to see if a relationship is obvious. If the data clearly
form a line or a curve, you may stop because variables are correlated. You may
wish to use regression or correlation analysis now. Otherwise, complete steps 4
through 7.
 Divide points on the graph into four quadrants. If there are X points on the
graph:
 Count X/2 points from top to bottom and draw a horizontal line.
 Count X/2 points from left to right and draw a vertical line.
 If number of points is odd, draw the line through the middle point.

4. Count the points in each quadrant. Do not count points on a line.

5. Add the diagonally opposite quadrants. Find the smaller sum and the total of
points in all quadrants.
A = points in upper left + points in lower right
B = points in upper right + points in lower left
Q = the smaller of A and B
N=A+B
 If Q is less than the limit, the two variables are related.
 If Q is greater than or equal to the limit, the pattern could have
occurred from random chance.
7. Stratification (also known as Flow Chart and/or Run Chart)
A technique that separates data gathered from a variety of sources so that
patterns can be seen (some lists replace "stratification" with "flowchart" or "run
chart").
Stratification is a way to organize data, and in particular of separating data into
meaningful groups. Stratification is also known as a flow chart or run chart.
In stratification, you should include each data point in only one group, and you
should leave no data point(s) out.
Below is an example of stratification.
WHEN TO USE STRATIFICATION?
 Before collecting data
 When data come from several sources or conditions, such as shifts, days of
the week, suppliers, or population groups
 When data analysis may require separating different sources or conditions
Here are examples of different sources that might require data to be stratified:
 Equipment
 Shifts
 Departments
 Materials
 Suppliers

32
  Day of the week
 Time of day
 Products
STRATIFICATION PROCEDURE
1. Before collecting data, consider which information about the sources of the data
might have an effect on the results. Set up the data collection so that you collect
that information as well.
2. When plotting or graphing the collected data on a scatter diagram, control
chart, histogram, or other analysis tool, use different marks or colors to
distinguish data from various sources. Data that are distinguished in this way are
said to be "stratified."
3. Analyze the subsets of stratified data separately. For example, on a scatter diagram
where data are stratified into data from source 1 and data from source 2, draw
quadrants, count points, and determine the critical value only for the data from
source 1, then only for the data from source 2.

JIT - JUST IN TIME

Just-In-Time (JIT) Manufacturing is a philosophy rather than a technique.
By eliminating all waste and seeking continuous improvement, it aims at creating
manufacturing system that is response to the market needs. Just-in-time
manufacturing was a concept introduced to the United States by the Ford motor
company.
JIT is a technique in Lean which ensures minimum inventory and naturally
better flow in production. TQM is a philosophy to continuously improve the
processes with the involvement of people to satisfy or delight our customers.
Without the TQM thinking, companies implement JIT and fail in their
journey because any JIT needs a worker involvement, cross functional way of
working and a clear culture of continuous improvement. All these are possible only
in organizations implementing TQM.
Advantages OF Just-in-Time (JIT)
JIT inventory systems have several advantages over traditional models.
Production runs are short, which means that manufacturers can quickly move
from one product to another. Furthermore, this method reduces costs by
minimizing warehouse needs. Companies also spend less money on raw materials
because they buy just enough resources to make the ordered products and no
more.
Disadvantages of Just-in-Time (JIT)
The disadvantages of JIT inventory systems involve potential disruptions in
the supply chain. If a raw materials supplier has a breakdown and cannot deliver
the goods in a timely manner, this could conceivably stall the entire production

33
process. A sudden unexpected order for goods may delay the delivery of finished
products to end clients.
POKA YOKE
Poka-yoke is a Japanese term that means "mistake-proofing" or
"inadvertent error prevention". A poka-yoke is any mechanism in any process
that helps an equipment operator avoid (yokeru) mistakes (poka). Its purpose is
to eliminate product defects by preventing, correcting, or drawing attention to
human errors as they occur. The concept was formalised, and the term adopted,
by Shigeo Shingo as part of the Toyota Production System.

Mistake Proofing: Apply to the process to prevent mistakes from occurring, stop
the error from further processing, and warn that the error has occurred.
Error Proofing: Apply to design to prevent assembly errors.
Zero Defects System
Failure Mode Effects Analysis (FMEA) application into Error Proofing-
Design/Process FMEA
A design FMEA is an analytical technique used by product or process designers
as a means to ensure that, to the extent possible, potential failure modes and
their associated causes have been considered and addressed. The design must be
improved based on the results of the FMEA study. All the design and possible
error proofing should be identified during the development of Design Failure
Mode Effects Analysis (DFMEA) and integrated into design.
Error Proofing Techniques
Design For Manufacturability (DFM): Techniques in designs that cannot be
incorrectly manufactured or assembled. This technique also can be used to
simplify the design and, therefore, reduce its cost for product.
Poka-Yoke System: Set-up devices or inspection techniques that ensure setup is
done correctly; for example, produce 100% good parts from the first piece on.
Design Stage: Best opportunity to impact quality and cost.

34