GE3752 Total Quality Management UNIT 1 Notes.pptx

TQm

1. GE3752 TOTAL QUALITY MANAGEMENT

2. GE3752 TOTAL QUALITY MANAGEMENT L T P C 3 0 0 3 COURSE OBJECTIVES:  Teach the need for quality, its evolution, basic concepts, contribution of quality gurus, TQM framework, Barriers and Benefits of TQM.  Explain the TQM Principles for application.  Define the basics of Six Sigma and apply Traditional tools, New tools, Benchmarking and FMEA.  Describe Taguchi's Quality Loss Function, Performance Measures and apply Techniques like QFD, TPM, COQ and BPR.  Illustrate and apply QMS and EMS in any organization.

3. UNIT I INTRODUCTION 9 Introduction - Need for quality - Evolution of quality - Definition of quality - Dimensions of product and service quality –Definition of TQM-- Basic concepts of TQM - Gurus of TQM (Brief introduction) -- TQM Framework- Barriers to TQM –Benefits of TQM. UNIT II TQM PRINCIPLES 9 Leadership - Deming Philosophy, Quality Council, Quality statements and Strategic planning- Customer Satisfaction –Customer Perception of Quality, Feedback, Customer complaints, Service Quality, Kano Model and Customer retention – Employee involvement – Motivation, Empowerment, Team and Teamwork, Recognition & Reward and Performance Appraisal-- Continuous process improvement – Juran Trilogy, PDSA cycle, 5S and Kaizen - Supplier partnership – Partnering, Supplier selection, Supplier Rating and Relationship development. UNIT III TQM TOOLS & TECHNIQUES I 9 The seven traditional tools of quality - New management tools - Six-sigma Process Capability- Bench marking - Reasons to benchmark, Benchmarking process, What to Bench Mark, Understanding Current Performance, Planning, Studying Others, Learning from the data, Using the findings, Pitfalls and Criticisms of Benchmarking - FMEA - Intent , Documentation, Stages: Design FMEA and Process FMEA. UNIT IV TQM TOOLS & TECHNIQUES II 9 Quality circles – Quality Function Deployment (QFD) - Taguchi quality loss function – TPM – Concepts, improvement needs – Performance measures- Cost of Quality - BPR. UNIT V QUALITY MANAGEMENT SYSTEM 9 Introduction-Benefits of ISO Registration-ISO 9000 Series of Standards-Sector-Specific Standards - AS 9100, TS16949 and TL 9000-- ISO 9001 Requirements-Implementation-Documentation- Internal Audits-Registration-ENVIRONMENTAL MANAGEMENT SYSTEM: Introduction—ISO 14000 Series Standards—Concepts of ISO 14001—Requirements of ISO 14001-Benefits of EMS. TOTAL: 45 PERIODS

4. COURSE OUTCOMES: CO1: Ability to apply TQM concepts in a selected enterprise. CO2: Ability to apply TQM principles in a selected enterprise. CO3: Ability to understand Six Sigma and apply Traditional tools, New tools, Benchmarking and FMEA. CO4: Ability to understand Taguchi's Quality Loss Function, Performance Measures and apply QFD, TPM, COQ and BPR. CO5: Ability to apply QMS and EMS in any organization. TEXT BOOK: 1. Dale H.Besterfiled , Carol B.Michna,Glen H. Bester field,MaryB.Sacre , HemantUrdhwareshe and RashmiUrdhwareshe , “Total Quality Management”, Pearson Education Asia, Revised Third Edition, Indian Reprint, Sixth Impression,2013. REFERENCES: 1. Joel.E . Ross, “Total Quality Management – Text and Cases”,Routledge.,2017. 2. Kiran.D.R , “Total Quality Management: Key concepts and case studies, Butterworth – 193 Heinemann Ltd, 2016. 3. Oakland, J.S. “TQM – Text with Cases”, Butterworth – Heinemann Ltd., Oxford, Third Edition, 2003. 4. Suganthi,L and Anand Samuel, “Total Quality Management”, Prentice Hall (India) Pvt. Ltd., 2006 .

5. UNIT I INTRODUCTION 9 UNIT I INTRODUCTION 9 Introduction - Need for quality - Evolution of quality - Definition of quality - Dimensions of product and service quality –Definition of TQM-- Basic concepts of TQM - Gurus of TQM (Brief introduction) -- TQM Framework- Barriers to TQM –Benefits of TQM.

6. INTRODUCTION Competition is getting harder and becoming global. Companies may now have to be more responsive, offer a better product and keep improving. TQM increases customer satisfaction by boosting quality. It does this by motivating the workforce and by improving the way the company operates. In an increasingly competitive market, firms with a continuous improvement culture and external focus are more likely to survive and prosper. TQM is considered as an important catalyst in this context.

7. Definitions of Quality Dependent on the people defining it No single, universal definition of quality Quality means different to different people: 1. Customer-Based: Fitness for use, meeting customer expectations. 2. Manufacturing-Based: Conforming to design, specifications, or requirements. Having no defects. 3. Product-Based: The product has something that other similar products do not that adds value. 4. Value-Based: The product is the best combination of price and features. 5. Transcendent: It is not clear what it is, but it is something good...

8. Introduction Total Quality Management (TQM) is an enhancement to the traditional way of doing business. Total - Made up of the whole Quality - Degree of Excellence a Product or Service provides. Management - Art of handling, controlling, directing etc. TQM 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.

9. Need for quality Quality is an essential factor to be considered in every product or service. For the survival of any industry/ business, quality is an essential requirement. Inadequate quality, it is not possible be any industry/ business to compete in the market. It should be noted that the future of an industry/ business is driven by customers . Quality is critical to satisfying your customers and retaining their loyalty so they continue to buy from you in the future. Quality products make an important contribution to long-term revenue and profitability. They also enable you to charge and maintain higher prices. TQM - Unit 1

10. Evolution of quality There is evidence that the quality of products have been monitored for a long time back in history. Even in the stone age, man used stone tool for survival by hunting, survival depended on the quality of his tool. Today also quality is very essential for survival. The only difference between past and present is that the method of attaining and sustaining quality has improved over the year and has attained to the level seen today. TQM - Unit 1

11. Antecedents of Modern Quality Management Guilds of Medieval Europe (From the end of 13 th Century to Early 19 th Century) The Industrial Revolution (From the end of 17 th Century to 1800s) The World War II (From 1938 to 1945) Post World War Era (After 1945)

12. Total Quality Management (TQM) Guilds of Medieval Europe (From the end of 13 th Century to Early 19 th Century)

13. Total Quality Management (TQM) Guilds of Medieval Europe (From the end of 13 th Century to Early 19 th Century)

14. Total Quality Management (TQM) Antecedents of Modern Quality Management The Industrial Revolution (From the end of 17 th Century to 1800s) Craftsmanship The Factory System The Taylor System (Science, not rule of thumb. Harmony, not discord.  Cooperation, not individualism. Development of each and every person to his/her greatest efficiency .)

15. Total Quality Management (TQM) Industrial Revolution: The Craftsmanship

16. Total Quality Management (TQM) World War II

17. Total Quality Management (TQM) Post World War II The Birth of Total Quality Management The birth of the Total Quality Control in US was in direct response to a quality revolution in Japan following WW-II as Japanese manufacturers converted from Producing Military Goods for internal use to producing civilian goods for trade. At first Japan had a widely held reputation for shoddy exports, and their goods were shunned by international markets. This led Japanese organizations to explore new ways of thinking about quality. And from here starts the era of “Quality Gurus”!

18. History of quality management When top managers in USA focused on marketing, production quantity and financial performance, Japanese managers improved quality at an unprecedented rate. Market started preferring Japanese products and American companies suffered immensely. America woke up to the quality revolution in early 1980s. Ford Motor Company consulted Dr. Deming to help transform its operations. (By then, 80- year- old Deming was virtually unknown in USA. Whereas Japanese government had instituted The Deming Prize for Quality in 1950.) Managers started to realize that “quality of management” is more important than “management of quality.” Birth of the term Total Quality Management (TQM) . TQM – Integration of quality principles into organization’s management systems .

19. Modern History of Quality Management Frederick W. Taylor wrote Principles of Scientific Management in 1911. Walter A. Shewhart used statistics in quality control and inspection , and showed that productivity improves when variation is reduced ( 1924); wrote Economic Control of Manufactured Product in 1931. W. Edwards Deming and Joseph M. Juran, students of Shewhart, went to Japan in 1950; began transformation from “shoddy” to “world class ” goods. In 1960, Dr. K. Ishikawa formalized “quality circles” - the use of small groups to eliminate variation and improve processes. In the late ‘70’s and early ‘80’s: Deming returned from Japan to write Out of the Crisis , and began his famous 4- day seminars in the United States Phil Crosby wrote Quality is Free NBC ran “If Japan can do it, why can’t we?” Motorola began 6 Sigma

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21. Evolution of TQM – New Focus 5 10/28/2022

22. Total Quality Management (TQM) What is a quality guru? A guru, by definition, is a good person, a wise person and a teacher. A quality guru should be all of these, plus have a concept and approach to quality within business that has made a major and lasting impact. These gurus have done, and continue to do, that, in some cases, even after their death.

23. Quality Gurus 12

24. The Era of Quality Gurus There have been three groups of gurus since the 1940’s: Early 1950’s : Americans who took the messages of quality to Japan Late 1950’s: Japanese who developed new concepts in response to the Americans 1970’s-1980’s: Western gurus who followed the Japanese industrial success

25. Three of the Quality Gurus Compared

26. Three of the Quality Gurus Compared (cont’d) Source: Modified from John S. Oakland, Total Quality Management (London: Heinemann Professional Publishing Ltd., 1989), pp. 291–92.

27. Three of the Quality Gurus Compared (cont’d)

28. Four historical stages of TQM Total quality management (TQM) has evolved over four stages:  1) quality inspection, 2) quality control, 3) quality assurance, 4) TQM

29. Definition of quality The term quality means, to produce the excellent product or service that fulfills (or) exceeds our expectations. These expectations are based on intended use and the selling price. E.g. Customer except gear used in the wrist watch is of better quality than a gear used in automobile gear boxes. Quality can be quantified as follows, Q = P / E Where Q= Quality, P= Performance, E= Expectations. If Q is greater than 1.0, then the customer has a good feeling about the product (or) service. Therefore, to give more performance (p) than expectations (E) TQM - Unit 1

30. Defining the Dimensions of Quality Quality in Goods Performance Features Reliability Durability Conformance Serviceability Aesthetics Perceived quality Quality in Services Reliability Tangibles Responsiveness Assurance Empathy

31. Dimensions of Quality (Product) Dimension Meaning and Examples i. Performance - Primary product characteristics. E.g. Brightness of the picture. ii. Features - Secondary characteristics, added features. E.g. Remote controls. Conformance – Meeting specification (or) Industrial standards, workmanship. Reliability - Consistency of performance over time, average time for the unit to fail. Durability - Useful life includes repair. TQM - Unit 1

32. Cont., vi. Service Resolution of problems and complaints, ease of repair. Human- to human interface such as the courtesy of the dealer. vii. Response Aesthetics - Sensory characteristics. E.g. Exterior finish. Reputation - Past performance and other intangibles. E.g. Being ranked first. TQM - Unit 1

33. Dimensions of Quality (Service)

34. Dimensions of Quality (Service) Dimension Definition Example RELIABILITY Differs from the product reliability in that it relates to the ability of the service provider to perform the promised service dependably and accurately Achieving delivery times stated on the website ASSURANCE The knowledge and courtesy of employees and their ability to inspire trust and confidence – creating trust and confidence will gain the customers’ loyalty The excellent reputation and high levels of trust based on previous experiences with the company TANGIBLES Includes the physical appearance of the physical service facilities, the equipment, the personnel who do the servicing, the communication materials and all tangible elements of service provider facilities or surroundings Cleanliness of the environment; personnel uniform; vehicles; flight EMPATHY Caring, individual attention paid to customers by the service firm to meet each customer’s demands properly. Employees’ high emphasis on customer requests to achieve higher satisfaction RESPONSIVENESS The willingness of the service provider to be helpful, be prompt in providing services, and to respond to customers’ requests, problems or complaints The speed of helping customer online or by telephone

35. Definition of TQM Total Quality Made up of whole Degree of Excellence a product or service. Act, art or manner of handling, controlling, directing etc. Management Therefore, TQM is the art of managing the whole to achieve excellence. It is defined as both a philosophy and a set of guiding principles that represent the foundation of a continuously improving organization. TQM - Unit 1

36. Basic concept of TQM A Committed and involved management to provide long term top to bottom organizational support. An unwavering focus on the customer , both internally and externally. Efficient involvement and utilization of the entire workforce. Continuous improvement of the business and production process. Treating suppliers as partners . Establish performance measure for the processes . TQM - Unit 1

37. Management Commitment Customer Focus ( customer satisfaction ) Involvement and utilization of entire work force ( total employee involvement) (Continuous education and training) Continuous Improvement Treating Suppliers as Partners Establish Performance Measures for the processes ( total quality control) SIX BASIC CONCEPTS OF T O T w A w w L . QUALITY MANAGEMENT TQM - Unit 1

38. Gurus Tools and Techniques Product or service realization Principles and practices Customer People and relationship: Leadership Customer satisfaction Employee involvement Supplier partnership Approach: Continuous process improvement. Measure: Performance measures. Benchmarking Information technology Quality management system Environment mgt system Quality function deployment Quality by design FMEA Product & process liability Total productive maintenance Management tools Statistical process control Experimental design Taguchi’s quality function Shewhart Deming Juran Figenbaum Ishikawa Crossby Taguchi TQM framework TQM - Unit 1

39. PILLARS OF TQM Problem solving discipline Interpersonal skills Teamwork Quality improvement process. TQM - Unit 1

40. PRINCIPLES OF TQM Customer’s requirements must be met the first time, every time. There must be agreed requirements, for both internal and external customers. Everybody must be involved, from all levels and across all functions. Regular communication with staff at levels is must. Two way communication at all levels must be promoted. Identifying training needs and relating them with individual capabilities and requirements is must. Top management’s participation and commitment is must. TQM - Unit 1

41. PRINCIPLES OF TQM A culture of continuous improvement must be established. Emphasis should be placed on purchasing and supplier management Every job must add value. Quality improvement must eliminate wastes and reduce total cost. There must be a focus on the prevention of problems. A culture of promoting creativity must be established. Performance measure is a must at organization, department and individual levels. It helps to asses and meet objectives of quality. There should be focus on team work. TQM - Unit 1

42. Total Quality Management (TQM) W. Edward Deming Deming, who had become frustrated with American managers when most programs of statistical quality control were terminated once the war and government contracts came to an end, was invited to Japan in 1954 by the Union of Japanese Scientists and Engineers (JUSE). Deming was the main figure in popularizing quality control in Japan and regarded as national hero in that country. He believes that quality must be built I into the product at all stages in order to achieve a high level of excellence. His thoughts were highly influenced by Walter Shwartz who was the proponent of Statistical Quality Control (SQC). He views statistics as a management tool and relies on statistical process control as means in managing variations in a process.

43. CONTRIBUTION OF DEMING He was a statistician and business consultant whose methods helped hasten Japan's recovery after the Second World War and beyond. He derived the first philosophy and method that allowed individuals and organisations to plan and continually improve themselves, their relationships, processes, products and service He also helped share the PDCA (Plan-Do-Check-Act) cycle which resulted in improved quality of wartime production. Although the original creator of the PDCA cycle was Walter A. Shewhart . Edwards Deming promoted its use for process improvement and later changed it to the PDSA cycle (Plan-Do-Study-Act)

44. W. EDWARDS DEMING’S 14 POINTS Create constancy of purpose for improving products and services. Adopt the new philosophy. Cease dependence on inspection to achieve quality. End the practice of awarding business on price alone; instead, minimize total cost by working with a single supplier. Improve constantly and forever every process for planning, production and service. Institute training on the job. Adopt and institute leadership. Drive out fear.

45. 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.

46. Contribution of Deming Create and Publish the aims & purpose of the organization. Constant commitment to include everyone such as investors, customers, suppliers, employees community and quality philosophy. To develop a long- term view of at least ten year plan to stay in business by setting long range goals. Resource must be allocated for research, training and continuing education to achieve the goals. Learn the new philosophy. Top management and everyone must learn the new philosophy. Organization ensure never ending improvement and refuse to accept Non- Conformance item. Customer satisfaction is the number one priority because dissatisfied customer will not continue to purchase Non- conforming product & service. The organization must concentrate on defect prevention rather than defect detection . TQM - Unit 1

47. 3. Understand the purpose of inspection. Management must understand that the purpose of inspection is to improve the process and reduce its cost. Mass inspection occurs too late in the process, it is expensive, and it is often ineffective. Quality results from prevention of defectives through process improvement , not inspection. Stop awarding business based on price alone. The organization must stop awarding business based on the low bid, because price has no meaning without quality. To develop long term relationship of loyalty & trust thereby provide improved product & services. Improve constantly and forever the system. Management must take more responsibility to improve quality and productivity, continually and permanently. The focus is on continuous improvement by preventing problems before they happen and thus cost are reduced. Variation is expected, but it should be reduced by using statistical tools and control charts continually. TQM - Unit 1

48. 6. Institute training. To develop the continuous improvement. To train employees to perform their jobs in the best manner. Everyone should be trained in statistical method, because it is used to monitor the need for future training. Teach and institute leadership. Improving supervision is management responsibility. All communication must be clear from top management to supervisor to customers. The main goal of supervisor should be to improve the work system and the product. Drive out fear, create trust and create a climate for innovation. Management should encourage open, team work and drive out fear. Driving fear out of the work place involves managing for success. Hence management should provide adequate training to workers, good supervision, proper tools to do the job, and to remove physical harms. TQM - Unit 1

49. 9. Optimize the efforts of teams, groups and staff area. Breakdown the barrier between the departments, among the levels of management and between all the functional area of the business. When the barriers are removed, the people can work as a team. Team work among different organisation units is essential for effective quality and productivity improvement to take place. Eliminate exhortations for the workforce. Eliminate slogans, exhortations targets and numerical goals for the workforce. A target such as “zero defect” is useless without a plan for the achievement of this objective. Hence, goals should be set that are achievable by the workers. Eliminate numerical quotes for the workforce. Eliminate numerical quotes such as targets for the workforce and numerical goals for management. When goals or target are set, workers may short- cut quality to reach the goals. Quotes should be replaced w T Q i M t h - U s n t it a 1 tistical methods of process control.

50. 12. Remove barrier that rob people of pride of workmanship. Remove the barriers that discourage employees from doing their jobs. Management must listen to employee suggestion, comments and complaints, when workers are proud of their work, they will work to the fullest extent of their job. A barrier for people on salary is the annual rating of their performance. 13. Encourage education and self- improvement for everyone. Institute an ongoing program on training, education and self- improvement for all employees. Unlike point 6, this refer to continuing, broad education for self development. Elevating the general knowledge base of the workforce returns many benefits. Take action to accomplish the transformation. Management should have responsibility to improve quality and productivity after advocating the above 13 points. Management must be committed, involved and accessible for the organization to succeed in implement the new philosophy. –

51. Total Quality Management (TQM) Joseph Juran Juran is a founder of the Juran Institute in Wilton, Connecticut. He promoted the concept known as Business Process Quality, which is a technique of Cross-Functional Quality Improvement. He was invited to Japan in 1954 by the Union of Japanese Scientists and Engineers (JUSE) He predicted the quality of Japanese goods would overtake the quality of goods produced in US by Mid-1970s because of Japan’s revolutionary rate of quality improvement

52. Juran Contribution Dr. Juran has a well-deserved reputation as the founder of a range of quality management techniques. His quality management approach is based on three key principles: the Pareto principle; quality management principles; and the Juran Trilogy – quality planning, quality control, and quality improvement .

53. Juran’s quality Trilogy Juran divides quality management into three parts, they are, Quality planning Quality control and Quality improvement. TQM - Unit 1

54. Quality planning Quality planning is defined as a structured process for defining the methods( i.e, measurements, tests) that will be used in the production of a specific product or family of products TQM - Unit 1

55. Existing product and process – (TV) Identify Customers Discover customer’s needs (good picture and sound) Customer’s needs (in units of measure) (UHD) Establish units of measure –(1080p) Translate Establish measurement Develop product Customer needs (in our languages) (Good pic - High pixel density) Customer needs (in their language) List of Customers Existing product and process Product features Units of measure Optimize product design Develop process Transfer to operations Optimize: prove process capability Process ready to produce Process ready to transfer Product goals i. Quality planning Process features TQM - Unit 1

56. Key elements of quality planning Establish quality goals – set by the chief Indentify the customer – Internal and external Internal customer : within organization External customer: outside the organization Determine customer needs. Develop products and service t h at respond to customer needs. Develop the process that has ability to produce those product features TQM - Unit 1

57. Key elements of quality planning Establish the quality goals that meet the needs of the customer at minimum cot Establish quality controls Prove the process capability Quality control (QC) is a procedure or set of procedures intended to ensure that a manufactured product or performed service adheres to a defined set of quality criteria or meets the requirements of the client or customer TQM - Unit 1

58. Process capability The ability of a process to meet specifications of the given product. Here we are checking the capability of the process to make a product that satisfies the given specification limits The measurement of process capability Cp – Measure of Potential Capability Cpk - Measure of actual Capability TQM - Unit 1

59. Needs of planning To detect current problems To avoid future problems To reduce the cost of manufacturing To reduce the cost of making prototype TQM - Unit 1

60. Chose control subject decide what to control Control units of measurement Establish standards of performance Measure actual performance Note difference between actual and standard performance Take action to close the p e T r Q f M o r - m U n a it n 1 ce gap ii. Quality control

61. iii. Quality improvement i. Build awareness of the need and opportunity for improvement. Set goals for improvement. Organize to reach the goals. Provide training. Carry out projects to solve problems. Report progress. Give reorganization. viii.Communicate result. Keep store. Maintain momentum by making annual improvement part of the regular systems and processes of the company. TQM - Unit 1

62. Juran’s Trilogy Diagram ` TQM - Unit 1

63. Total Quality Management (TQM) Philip B Crosby Crosby is known for the concepts of “Quality is Free” and “Zero Defects”, and his quality improvement process is based on his four absolutes of quality: Quality is conformance to requirements The system of quality is prevention The performance standard is zero defect The measurement of quality is the price of non-conformance

64. Contribution of Crosby in TQM The major contribution made by Crosby is indicated by the fact that his phrases 'zero defects', 'getting it right first time', and 'conformance to requirements' have now entered not only the vocabulary of quality itself, but also the general vocabulary of management. Philip Crosby is a noted quality professional, author, and consultant who is widely known for promoting the concept of “zero defects” and for attempting to define quality from the viewpoint of conformance to requirements.

65. Crosby devised the principle of  “doing it right the first time”  (DIRFT). He also included four major principles: The definition of quality is conformance to product and customer’s requirements. Prevention is the system of quality. Zero Defects should be the performance standard. Quality measurement is the price of non-conformance

66.   Crosby 14 Steps to Quality Improvement Management’s commitment towards quality should be clear to all in the organization and those outside it. Creation of quality improvement teams with senior representatives from all departments. Continuous measurement of processes to determine current and potential issues related to quality. The cost of poor quality has to be calculated. Quality awareness has to be raised in the organization. Corrective actions should be taken to address quality issues.

67. 7. Establishment of a Zero Defect committee to monitor the progress of quality improvement. 8. Quality improvement training to all the employees. 9. Organize zero defects days in the organization. 10. All employees should be encouraged to set their own quality improvement goals. 11. Obstacles to quality should be discussed with employees in an open communication. 12. Participants’ efforts should be recognized. 13. Quality councils should be created. 14. Quality improvement is a continuous process. It keeps going.

68. Step 1: Management Commitment First of all, management must be committed and dedicated to process improvement and this culture should be passed on to the whole company workforce. Step 2: Quality Improvement Team Secondly, a team specialized in total quality management should be formulated. This team should be solely responsible for process quality. Step 3: Quality Measurement Before you start implement any action plan, you need to measure and assess process quality and identify the areas that need improvement.

69. Step 4: Cost of Quality Evaluation Next, you need to assess the cost that comes along. What is the cost of quality and how does it fall into your company’s overall plan? You can model this as a new business scenario with multiple costs and benefits using our  scenario building  capabilities. Step 5: Quality Awareness At this point you need to spread the importance of quality throughout your entire workforce and embrace it within your business culture.

70. Step 6: Corrective Action Having identified what needs to be improved, you will then need to start implementing a plan so that corrective actions start to roll out. Step 7: Plan for Zero Defects Program It goes without saying that this step is all about eliminating defects. This step not only aims to reduce defects but to entirely eliminate them. Step 8: Supervisor Training In order to achieve process quality you need to have supervisors that are actively embracing this culture; and to do that you need to provide them with the right training.

71. Step 9: Zero Defects Day Further you need to increase awareness by holding a zero defects day in which are employees are taking part. Step 10: Goal Setting Setting goals for improvement should involve employees from the whole organization. By engaging everyone you are making sure that goals are made out clear to all levels of the organizational structure. Step 11: Error Cause Removal In every quality improvement effort it is important to take a step back and identify any errors that are hindering this process. Engaging all employees in this procedure is vital.

72. Step 12: Recognition: Recognizing employees that excel in the quality improvement efforts and celebrating their success will not only encourage them to continue the good work but it will also inspire others to start participating. Step 13: Quality Council : Bring along specialists and hold quality councils on a regular basis in order to create focused and clearly defined goals. Step 14: Do It Over Again The last step of the model is very simple. Here, you need to do everything all over again from the start. Crosby’s model is not an ad-hoc model but rather a process of continual process. So make sure that you repeat this process over and over again.

73. Barrier to TQM Implementation iii. Lack of management commitment. To manage time and organizational resources. To clearly and continuously communicated to all personnel. Management must consistently apply the principles of TQM. Inability to change organization culture. Changing an organization’s culture is difficult and will require as much as five years. It is not possible to change the organizational culture for individuals. Improper planning. Two- way communication of ideas by all personnel during the development of the plan & its implementation. Customer satisfaction should be the goal rather than financial or sales goals. E.g. Peterson product, a metal stamping firm near chicago, improved on time delivery, which result in a 2.5% increase in sales. TQM - Unit 1

74. iv. Lack of continuous training and education. Training and education (T & E) is an ongoing process for everyone in the organization. Customer needs must be determined and a plan developed to achieve those needs. T & E are most effective when senior management conducts the training on the principles of TQM. Incompatible organizational structure and isolated individuals and departments. Differences between departments and individuals can create implementation problem. Restructuring to make the organization more responsive to customer needs may be need. Individuals who do not embrace the new philosophy can be required to leave the organization. E.g. At Spartan light metal product, Inc. in sparta. Ineffective measurement techniques and lack of access to data and results. Key characteristics of the organization should be measured so that effective decisions can be made. In order to improve a process you to measure the effect of improvement ideas. Access to data and quick retrieval is necessary for effective process. TQM - Unit 1

75. vii. Organizations need to understand the changing needs and expectations of their customers. Effective feedback mechanism that provide data for decision making are necessary for this understanding. One way to overcome this obstacle is to give the right people direct access to the customers. Inadequate use of empowerment and teamwork. Team need to have the proper training and at least in the beginning, a facilitator whenever possible, the team’s recommendations should be followed. Individuals should be empowered to make decision that affect the efficiency of their process (or) the satisfaction of their customer. Failure to continually improve. It is tempting to sit back and rest on your laurels. However, a lack of continuous improvement of the processes, product and services will even leave the leader of pack in the dust. Paying inadequate attention to internal and external customers. TQM - Unit 1

76. Customer Focus The first quality management principle begins with the customer.  Having a customer focus ensures that your customer receives the benefit of a product or service you are offering. This lies at the centre of most organisations , because without customers, your organisation will serve no purpose to exist.  Increasingly, manufacturing and service organizations are using customer satisfaction as the measure of quality. The importance of customer satisfaction is not only due to national competition but also due to worldwide competition. This fact is reflected in Malcolm Baldrige National Quality Award where customer satisfaction has high importance in the criteria

77. Who is the Customer? Two types of customers— External and Internal External customer can be defined in many ways, such as the one who uses the product or service, the one who purchases the product or service, or the one who influences the sale of the product or service. External customer exists outside the organization and generally falls into three categories: current, prospective, and lost customers Engineering, order processing, or production, has an internal custome r—each receives a product or service and, in exchange, provides a product or service.

78. Customer focus involves the organization Identify your customers (both internal and external) Ensuring everyone across the organization has a strong grasp on your customers, suppliers, and competitors of the organisation Identify your customer's needs by constantly seeking feedback from them Be willing to make changes based upon this feedback, and respond to customers

79. Customer Perception of Quality Performance Features Service Warranty Price Reputation. TQM Unit 2 84

80. Cus t omer c o mp l a i nts (or) Cus t o mer feedback Customer complaints is reactive whereas the customer feedback is proactive. Customer Complaints when, one is not concentrating on customer feedback or who entirely eliminates the feedback process itself. Customer complaints should be analyzed systematically to eliminate the root cause of problem. 85

81. Systematic way of attending complaints to ensure satisfaction Step 1 : Design o f a n e f f e ctive method t o c ollect customer complaints. Step 2: Quick response to customer complaints. Step 3: Identifying and fixing the problem. Step 4: T aking c orrec t ive measure and prov i ding compensation, if required. Step 5: Data analysis to obtain information from the complaint data. Step 6: T aking preve n tion me a sure t o s t op reappearance of the problem. TQM Uni 1 2

82. Tools used for collecting customer complaints Com m ent ca r d: It i s a card n o r m al l y attac h ed t o the warranty card, issued with the product at time of sales. Customer questionnaire: It includes, Survey through mail, or Survey through E- mail, or Survey through telephone. Focus g r o u p s : It includes cu s t o m er m e etings, word associations, discussions, relaxation techniques etc. Toll- free telephone numbers. Customer visits. i.e., visits to a customer’s place. Report cards. Th e Internet and computer: It i n c ludes n ew s g roup s , bulletin boards, mailing lists etc. 8. Employee feedback. T Q M U nit 2 6

83. Service Quality (or) Customer service Service quality refers to the quality in the service activities in manufacturing (or) service organizations. Higher service quality leads to better customer satisfaction. Unlike product quality, service quality cannot be controlled by scientific method or objectively measured by setting standards. Good service quality means meeting the customer expectations. 7

84. Important aspects of service quality i . Service q u al i ty i s t h e m ost i m por t ant a spects of an o r ganiz a tion t o ensure the s a m e lev e l of qual i ty for all iii. customer (Internal and External). ii. Proper direction for all employees, especially to the front line workforce, is necessary to improve service quality. Information technology is essential for quality in the present system because of high volume of information & customer demand for service at ever increasing speed. iv. Proper customer care measure are necessary to keep up promises made to customers, to respond to customer complaints immediately, to treat customer as the guests of the organization. v. Exec u tive role m odel employees.

85. Ten dimensions of service quality Dimensions i . Reli a bi lity Meanings Consistency of performance and dependability. (i.e.) the ability to provide as per the promise made. Approachability and ease of contact. ii . Access iii. Communication – Education & information customers in language they can understand, listening to customers. Co m petence Courtesy Possession of the skills and knowledge required to perform the service. Politeness, respect, consideration for property clean and neat appearance. TQ Unit 1 9

86. Cont . , Dimensi o ns vi. Credibility Meanings - Trust worthiness, believability having customer’s best interest at heart. vii. Responsiveness – Willingness (or) readiness to provide service, timeliness. viii. Security - Freedom from danger, risk or doubt. ix. Understanding – Making an effort to understand the customer’s needs, learning the specific requirement, provide individualized attention, recognizing the regular customer. x . T an g ib l es - The physical evidence of the service (Facilities, tools, equipment, personnel etc.) 91

87. Components of Service quality Employees. Information technology. iii. Many service, transportation, hotel etc. Elements of Service quality Organization. Customer care. Communication. Front- line people. Leadership.

88. Comparison between product quality & service quality Product quality Products are produced before consumption. Poor products can be recalled(or) replaced. Quality is assessed against design specification. Products are capital intensive. v. The goals is uniformity. Service quality Service are produce and consumed simultaneously. Poor service quality can only be followed up with apologies & compensation. Quality is assessed against customer’s personal & vague expectations. Services are more labour intensive. Require high degree of customization.

89. Customer retention Customer retention is a process of retaining the existing customers. It is more important than customer satisfaction. It is to be noted, “a customer satisfied is not always a customer retained.” Cost of attracting a new customer is much higher than the cost of retaining a old customer . Organization use customer satisfaction data to measure success and to retain customers 94

90. Advantage of Customer retention Retained customers buy more as they become more familiar with the organization. Cost of service as existing customer is very less compared to an entrant. Customer may be willing to pay more for a product (or) service when they are familiar with product (or) service. Word of mouth advertising through long term customers has a great value.