Session – XVI

Chapter No. 2

QUALITY MANAGEMENT

Total quality Management (TQM)

Quality Management is defined as the Co’s Policy to manufacture or

design services, “As per set standards (ISI or ISO) and then verify, if

the products / services conform to those standards of performance.

There are some tolerance limits in these standards, and if the variation

is more than the tolerance limits, corrective action is taken to bring

them in the limits.

TQM - Read 14 points of Deming : Page 61 from Text book.

Total : Total Stands for all employees from top management, middle

and lower levels to adhere to the quality norms as per Co’s Policy. Also

all suppliers have to follow the same norms and other intermediatories

such as transporters, handling agents etc.

Quality : Starts at the source of supply of all inputs, process of

manufacturing and delivery etc.

Management : means training of all stake-holders for quality and

minimizing human errors as for as possible by automation and skill

development.

Quality Circles

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Every Co. has a group of 10-15-20 employees, who monitor the

activities from time to time and suggest improvement to adhere to the

quality standards. Continuous improvement of quality from 3 sigma to

6 sigma is aimed and is called “Kaizen Philosophy”.

Quality Movement :

It was started by “Deming” immediately after World Ward II (1939 to

1945) and he was invited by Japan to manufacture and train people for

quality manufacturing assisted by “Juran” & “Cross by”

Mathematical equation of quality

is Q = Performance of Product

Expectation of Customer as per Std.

= 1 Very Good

> 1 Very Very Good

There are 9 dimensions of quality for products

1. Product must perform as per std.

2. Conform to the Std. as laid down.

3. Reliable at all times and all places.

4. Durable as per life of product.

5. Serviceable – easy to service.

6. Reputation of manufacturer

7. Extra features

8. Aesthetics of product / service.

9. Human touch for delivery of Product and listen to complains.

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Study of Six Basic Concepts of TQM (For Product Quality)

01st : Commitment of Top Management. Top Management is Board

of Directors and they lead the organization for achieving TQM by their

leadership qualities, such as

a) Be proactive to take the responsibilities for TQM.

b) Keep the goal in mind.

c) Manage your time and perform important works. Leave the

urgent works to lower level officers.

d) Go for win-win situation.

e) Understand your employees first and then make them

understand you.

f) Combine the energy of everyone and create “Synergy”

g) Sharpen your skills to achieve better results.

Board of Directors are “decision makers” for the organization and the

leadership system is

Vision

↓

Mission

↓

Develop Strategies for quality

↓

Review them

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↓

Prepare short term & long term plans

↓

Implement the plans

↓

Measure the results manually

2nd Customer Satisfaction

It is a difficult activity to satisfy all customers but good human touch

will ‘straightway satisfy majority of customers.

Front linesalesmen are in direct contact with customers and they have

to convince them about quality of product.

Guarantee & warranty, Reputation of the company, services offered,

extra features and competitive prices etc.

Feedback from customers, listening to complaints, free replacement, if

needed focus on valuable customers, communication with customers

By Ad, P.R. & Road Show.

3rd Employee involvement

a) Training for TQM

b) Motivating them to achieve quality levels by empowering them

and improving their abilities by forming quality teams and quality

circles.

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Practice of suggestion box, recognition of their work, rewarding them

as and when. Profit sharing by Bonus, Take union in confidence.

4th Continuous Improvement (Kaizen Philosophy). Business as usual or

Traditional way of working to quality production Deming’s PDSA cycle.

i.e. Plan, Do, study & Act.

Planning to improve Design of Product and process design

Standardization of quality

3 Sigma 99.7% Good

4 Sigma 99.93% Very Good

5 Sigma 99.99% Very Very Good

6 Sigma 99.999999 Excellent : DPMO (Defects per million of

operations)

Improvement is achieved by problem solving in quality – std. statistical

analysis is carried out to locate the problem areas and take corrective

action.

5th Treating Supply Chain members as Partners for Progress

a) 1st member is Supplier

Suppliers are to be told clearly about your std. of quality and both

std. must match i.e. 3 sigma or 4 sigma etc.

Engineers must visit suppliers premises from time to time.

The supplier must take the responsibility for quality – supplies.

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b) Transporter :

No damage is done during handling and transportation.

c) Ware housing : Minimum time to be taken at warehouse.

d) Quality check at plant to be done at random.

e) Packing and lots in proper size for dispatching finished product.

f) Delivery of product to customers with human touch.

6th World ranking. Once above 1st to 5th concepts are achieved,

organization can achieve world ranking in due course of time, in its

own category of product, such as

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