MMZG 522 Total Quality

Management

Rajiv Gupta

BITS Pilani

August 2014

Lecture 1

Session 1

• Module 1 – Introduction to Dr. Rajiv Gupta, faculty for MFGO 635

– Introduction to the course and guidelines to the course

• Module 2 – Understanding Quality

• Module 3 – Total Quality Management

• Module 4 – Quality Gurus

• Module 5 – Summary

2

Session 1

• Begin Module 1

– Introduction to Dr. Rajiv Gupta, faculty for

MMZG 538

– Introduction to the course and guidelines for

the course

3

• Dr. Rajiv Gupta

Education:

B.Tech. M.E. I.I.T. Delhi

M.S. I.E. North Carolina State University

Ph.D. I.E. Purdue University

Taught at The State University of New York at

Buffalo, General Motors Institute, and the University of

Michigan, Dearborn in the U.S.

S.P. Jain Institute in Singapore and Dubai, FORE School of

Management, School of Inspired Leadership and BITS,

Pilani

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Worked at Mahindra Logistics as Head of Solution

Design and Automotive Operations

Started and ran own Consulting Company as an

International Associate of Tompkins Associate of

Raleigh, North Carolina

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Course Outline

• We will cover the topics related to Total Quality

Management

• Text book: Total Quality Management, 3rd ed. By

Dale Besterfield, et. al., 2011

• Method of instruction: Taped lectures, live on-

line recitation sessions. In addition there will be

additional taped material that will be available

• Neither the text book, nor the lecture notes, nor

the lectures substitute for each other. You need

all three to learn about the subject. 6

• It is the responsibility of the student to watch the

taped lectures, attend the recitations (or watch

taped), read the relevant chapters from the book

and other material that is made available.

• For any questions, doubts pertaining to the

subject matter, please send me an email at

gupta.rm@wilp.bits-pilani,ac.in. For all

administrative questions, please call or write the

WILPD office at BITS Pilani. If you do not get a

satisfactory response please let me know.

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• Assessment: There will be 2 exams and 2

on-line quizzes. The point breakdown will

be as follows:

– Mid-term exam (closed book) – 35%

– Final exam (open book) – 50%

– 2 on-line quizzes (open) – 15%

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• I expect you to keep regular with the

material covered in class and with the

readings as assigned. This is your

responsibility.

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Session 1

• End of module 1

10

Session 1

• Begin Module 2

– Understanding Quality

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12

Quality

• What is quality?

• Who determines what is quality?

• Who is responsible for quality?

• How has quality evolved?

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Definition of Quality

• Quality is the totality of features and

characteristics of a product or service that bear

on its ability to satisfy stated or implied needs

now and in the future. (From: ANSI/ASQC A3-

1987 “Quality Systems Terminology”)

• Quality = Customer Satisfaction and

Loyalty; Customer Focused.

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Definition of Quality

• Quality= Q = P/E

Q = Performance/Expectations

• Quality has two sides:

- Objective quality that can be measured

easily (by physical instruments).

- Subjective quality depends upon each

individual’s perception. (Quality is a

subjective term for which each person

has his or her own definition).

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Definition of Quality

• Manufactured product quality dimensions

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Definition

of Quality

Who Determines Quality?

• In the old days, (and in some cases, even

today), the design and the quality

departments determined what is quality

– Conformance to specification

– Conformance to design

– Conformance to need??

• Today – the ultimate customer who pays

for the product or service determines what

is quality

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Who Determines Quality?

• Example of the U.S. auto industry

– Considered the effect of imports from Japan as an

aberration and limited to low cost vehicles

– Did not take into consideration the changing

consumer needs

– Blamed the customer for not understanding the effort

and cost going into the manufacture of costs and for

not buying American cars

– Almost went out of business

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Who is Responsible for Quality?

• In the days of craft production, the craftsman inspected

the product for non-conformities and defects and

corrected for them

• With mass production, we saw the growth of the

inspection department. In the Hawthorne plant of

Western Electric Co., there were 40,000 employees and

5,200 in the inspection department

• During World War II, we saw a growth of Statistical

Quality Control. But this was discontinued after the war

due to the tremendous increase in demand and the lack

of top management understanding and commitment

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Who is Responsible for Quality?

• In Japan, after World War II, there was a tremendous

shortage of good quality radios and the U.S. occupation

forces requested the services of Dr. Deming and Joseph

Juran to train the Japanese manufacturing companies in

the fundamentals of quality and statistical quality control.

Dr. Deming insisted, and got all the top management of

the Japanese companies to attend the training on quality

• Dr. Deming taught the Japanese, and later, the

American companies that quality is the responsibility of

top management. Without their understanding and

commitment, quality is not possible.

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How Has Quality Evolved?

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Inspection

Statistical Process Control

Understanding Customer

Needs

Anticipating Customer

Needs

Session 1

• End of module 2

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Session 1

• Begin Module 3

– Total Quality Management

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TQM- Total Quality Management

• TOTAL

-- Whole- Everyone involved

-- All parts of the organization involved

• How do you see your role in creating or ensuring quality in your organization?

• Think of areas such as design, purchasing, manufacturing, warehousing, maintenance, etc.

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Total Involvement

• Market research -- must discover quality needs of the users.

• Product Development -- must create designs that are responsive to their needs.

• Manufacturing and Operations Planning -- must regulate these processes capable of executing the product designs.

• Purchasing -- must obtain adequate materials.

• Inspection and test -- must prove the adequacy of the product through simulated use.

• Marketing -- must sell the product for the proper application.

• Customer Service-- must observe the usage, remedy failures, and report opportunities for improvement.

• Administrative and Support Activities-- must meet the needs of their customers, both internal and external.

• Management -- must take leadership in quality activities.

• Suppliers – must provide the right part at the right time, quality and cost

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TQM - Total Quality

Management • QUALITY

-- Degree of excellence of a product

or service

-- Customer Satisfaction

• Building quality versus weeding it out

• Deming’s “pride in work”

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TQM- Total Quality Management

• MANAGEMENT

-- Act, art, or manner of handling,

controlling, directing, etc.

• Reactive versus Proactive

• Anticipate Requirements

• Leadership

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TQM is both a philosophy and a

set of guiding principles • Of clear vision and mission for the organization

• To apply formal and quantitative methods

• To fully exploit human potential

• To continuously improve all processes within an

organization

• To meet and exceed customer needs for now

and in the future

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TQM requires five basic

concepts: 1. Visionary leadership

2. An unwavering focus on customers

3. Effective involvement and utilization of the

entire workforce

4. Treating suppliers as true partners.

5. Data based performance measurement and

continuous improvement of business and

operational processes.

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New and Old Cultures

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• Traditional = q =Little Q

• Modern concept of Quality = Q = Big Q

Traditional vs. TQM

q Q

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Quality is a Business Issue

• It is no longer only a quality manger’s job.

• Quality relates to everything in an organization.

• Quality demands specialized knowledge, training and tools.

• TQM approach leads to successful organizations.

• Organization MUST have a well-developed Quality Management System (Study, Implement and Improve)

• Quality Certifications and Awards

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TQM Framework

Session 1

• End of module 3

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Session 1

• Begin Module 4

– Quality Gurus

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Quality Gurus

• Walter Shewhart

• W.E. Deming

• Joseph Juran

• Philip Crosby

• Feigenbaum

• Ishikawa

• Taguchi

• Kano

Walter Shewhart

• Considered the father of Statistical Quality

Control and the Shewhart Cycle

• The Shewhart Cycle evolved into the

current PDCA/PDSA cycle

• Worked at Western Electric Co.

• Dr. W. E. Deming learned about Statistical

Quality Control, the Control Chart and the

Shewhart Cycle from Walter Shewhart

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W.E. Deming

• Taught the Japanese companies basics of

SQC and the importance of quality at the

end of World War II

• Evolved the Shewhart Cycle into the

current PDSA/PDCA cycle

• 14 Points

• System of profound knowledge

• Predictable degree of uniformity

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Joseph Juran

• Quality is fitness for use

• Quality is defined by product features and

absence of deficiencies

• Juran Trilogy

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Quality–

Features

and

Freedom from

Deficiencies

Juran Trilogy

• Quality Planning

• Quality Control

• Quality Improvement

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Juran Trilogy

• Quality Planning

– Identify who are the customers.

– Determine the needs of those customers.

– Translate those needs into our language.

– Develop a product that can respond to those

needs.

– Optimise the product features so as to meet

our needs and customer needs.

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Juran Trilogy

• Quality Control

– Evaluate actual quality performance

– Compare actual performance to quality

goals

– Act on the difference

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Juran Trilogy

• Quality Improvement – Establish the infrastructure needed to secure annual quality

improvement.

– Identify the specific needs for improvement -the improvement

projects

– For each project establish a project team with clear responsibility

for bringing the project to a successful conclusion

– Provide the resource, motivation, and training needed by the

team to:

• Diagnose the cause

• Stimulate establishment of remedies

• Establish controls to hold the gains

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Philip Crosby

• The definition of quality is conformance to requirements

(requirements meaning both the product and the

customer's requirements)

• The system of quality is prevention

• The performance standard is zero defects (relative to

requirements)

• The measurement of quality is the price of

nonconformance

• Quality is free

• Do It Right The First Time

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A.V. Feigenbaum

• Total Quality Control

• Includes both planning and control

• Quality system to provide managerial

procedures to assure customer

satisfaction and an economical cost of

quality

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Kaoru Ishikawa

• Use of quality tools to solve problems

• Ishikawa diagram

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Genichi Taguchi

• Quality is loss to society

• Quality loss function

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Kano Model

Goal: Customer Satisfaction

Kano Model of Quality suggests relationships of dissatisfiers (unspoken wants), satisfiers (Give more of), and delighters (Wows) to customer satisfaction (CTS=Requirements Critical to Customer Satisfaction).

Session 1

• End of module 4

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Session 1

• Begin Module 5

– Summary

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Summary of Session 1

• Quality is the responsibility of top management

but requires the involvement of everyone

• Total Quality Management is a systems

approach to manage quality in an organization

• Quality has evolved over the years to where the

focus today is on customers and not on the

manufacturers

• Significant advances have been made in quality

in the twentieth century

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Session 1

• End of module 5

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