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Unit II ASPECTS OF TQM

Introduction

• Total Quality Management (TQM) is introduced and led by top management.

• It is a management approach which is focused on quality.

• Its long term success is based on the quality culture of the organization, the
participation & commitment of the employees and the consistent delivery of quality
products and services.

• With the help of TQM philosophy, the management manages an organization in

such a way that enables to meet stakeholder needs and expectations consistently in terms
of quality.

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 Management covers the soft issues such as ethics, attitude and culture through
TQM.
 Generally, the management apply Quality Management System (QMS) to
achieve the success of the total quality programme.
 Simple statistics and random sampling were used to get the results from the
production line in early days of Quality Management Systems (QMS).

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 ▪ By the 20th century, the importance was shifted to team cooperation and dynamics
due to the labour inputs as the most costly inputs.
▪ In the 21st century, the quality issues and customer satisfaction were become as
important part of the QMS and considered as the primary task of it because of
the sustainability and transparency initiatives.
▪ In this regime, the ‘ISO 9000 family of standards’ as well as ‘quality audit’ are used
extensively worldwide for quality up-gradation.
▪ Besides this, it is assumed that other quality problems can be reduced as result of the
systematic as well as analytical thinking, transparency in the processes, standard
documentation and problem solving environment in the organization.

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 According to the American Society for Quality (ASQ), Quality Management System (QMS)
is
“the organizational structure, processes, procedures and resources needed
to implement, maintain and continually improve the management of
quality.
▪ It is also considered as a set of coordinated activities to direct and control an organization
in order to consistently improve the effectiveness and efficiency of its performance.”
▪ An effective quality management system (QMS) helps the organization in
terms of implementation of total quality management as it covers quality
policy, quality objectives, goals, documentation of information, business processes
focused on consistently meeting customer requirements and enhancing their
satisfaction.
▪ Its success dependent upon its alignment with company's strategic
planning.
▪ It is expressed as the total sum of organizational quality policies,
standards/processes, objectives and goals, documented information, quality
tools and resources needed to implement and maintain it.

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ELEMENTS OF QUALITY MANAGEMENT SYSTEM

The quality management system consists of the following elements as under:

o Quality Policy
o Quality Objectives
o Quality Manual
o Organizational Structure and Responsibilities
o Understanding customers and fulfilling their satisfaction
o Continuous improvement of processes
o Facilitate employees’ education and quality training
o Using quality tools, techniques and parameters
o Data/Record management through standard documentation
o Quality control

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QUALITY POLICY
“Quality policy is the top management's expression of its intentions,
direction, and aims regarding quality of its products and processes.”
(www.businessdictionary.com)

▪ Quality Policy is a written statement coined by the top management of an

organization with regard to manufacture or supply of quality product/service
that meet the customer’s expectations.
▪ The written quality policy is very much helpful to demonstrate that its internal
quality controls are effective and to assure the stakeholders regarding the
management of quality.
▪ It assures all the stakeholders that the organization can produce and deliver the
desired quality product or services with standard specifications on time and
within budget.

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ELEMENTS OF QUALITY MANAGEMENT POLICY STATEMENT

The major elements described in quality policy are aimed at the following:
▪ To describe managements’ commitment to maintaining standards of
the company’s product or service.
▪ To identify the ownership and involvement within the organization
of all staff and specifically those with key roles in maintaining the
quality of the company’s product or service.
▪ To state how the company’s product or service is monitored to
ensure that it continues to meet customer and market place needs.

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 ▪ To state how the importance of meeting the customers’ needs it
communicated within the organization.
▪ To state how the company ensures customer satisfaction is achieved.

▪ To detail how the company provides adequate resources to enable the

above to happen.
▪ To state that the company systems or processes will be reviewed
periodically to ensure that they remain effective in delivering customer
satisfaction.

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EXAMPLES OF THE QUALITY POLICY

▪ Goodyear’s quality policy is “our mission is constant improvement in products and services to
meet our customers’ needs. This is the only means to business success for Goodyear and
prosperity for its investors and employees.”
▪ Motorola’s quality policy is “Doing the right thing. Every day. No excuses.”

▪ Nestle’s Quality Policy is “To sustainably create value and to effectively and efficiently build
customer and consumer trust,
▪ Quality at Nestlé is to:

i. Guarantee food safety and full compliance by respecting our policies, principles and
standards with full transparency,
ii. Ensure preference and consistency to delight consumers and customers by valuing what
they value and by offering products, systems and services that always meet or exceed
their expectations,
iii. Strive for zero defects and no waste by constantly looking for opportunities to apply
our continuous improvement approach to deliver competitive advantage,
iv. Engage everybody’s commitment across our complete value chain and at all levels of
our organization to build the Nestlé quality culture.”

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QUALITY OBJECTIVES
▪ Quality objectives are measurable steps towards achieving the organizational quality policy.

▪ Quality objectives state the answer of what to do to meet the goals fixed in the quality policy?

▪ These can be the best way to spotlight the key elements of the quality policy.

▪ The quality objectives can be to improve on-time deliveries, reduction in internal scrap, lower down the
defects in production, cost reduction through elimination of wastes by 90-95 percent within one year, etc.

▪ The objectives must be controlled by considering them as the part of a procedure and making them part of
the quality manual.

▪ The quality policy is created with the customer requirements/needs in mind, then quality objectives are
linked back to the customer requirements/needs through the quality policy.

▪ These quality objectives would then be communicated to each level of the organization. The quality
objectives should be designed to be specific, measurable, achievable, realistic and time-based.

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QUALITY MANUAL
Quality manual is an official document produced by a business that details how its quality management
system operates.
▪ A typical quality manual will include the company's quality policy and goals, as well as a
detailed description of its quality control system that might include staff roles and
relationships, procedures, systems and any other resources that relate to producing high
quality goods or services.
The purposes of the quality manual are as under:
▪ The quality manual identifies the scope of the Quality Management System. In fact,
it identifies the limits of the QMS.
▪ This is the explanation of what the business is? Is it a fast food chain? Or Is it a
retail store? Or Is it an automotive industry?
▪ The quality manual consists of flowcharts which explains the connectivity of the all
the different processes. This in-depth flowchart may help the employees to better
understand the interactions between processes in the organization.
▪ It includes a top-level management structure so that people can better understand
how the organization is controlled.

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 ▪ The quality manual should be smaller, more graphic, more informative and easier to read and

understand.

▪ The mission and vision statements of the company, quality policy and quality objectives can be a

part of the quality manual.

▪ A good quality manual gives a clear picture about the success of the Quality Management System.

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QUALITY DOCUMENTATION

▪ Quality documentation means the process of documenting the information.

▪ The information is related with each and every process, procedure, quality objective,

checklist, drawing, flowchart, forms, diagram, etc.

▪ These quality documents describe the functioning of the quality management system. It is

also mandatory as per the provisions of ISO 9000 certification as some information /
documents are required to get the quality certificate.

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PILLARS OF QUALITY MANAGEMENT SYSTEM

▪ The quality management strategy will then vary from organization to organization;

however, a set of primary elements should be present in some format.

▪ ISO 9000 (which contains eight quality management principles) and quality audit are

the two important pillars upon which the efficient, effective and adaptable quality
management system is to base.

▪ The eight quality management principles are applicable throughout industry,

commerce and the service sectors.

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ISO-9000 (INTERNATIONAL STANDARDS ORGANISATION)
▪ The ISO-9000 standard was published in 1987.

▪ It had undergone revision in 2000 and 2005.

▪ It covers definitions, requirements, and continual improvements.

▪ ISO-9000 standards are developed to effectively design and implement efficient quality systems.

▪ These provide a framework that can provide guidance for the processes to be made auditable.

▪ These standards help organizations to work effectively.

▪ ISO-9000 standards are market driven designed by experts.

▪ These standards are reviewed once in five years to decide whether to modify, maintained or withdrawn. ISO-9000 is
helpful to show the customers that the organization have adopted quality procedures, quality processes and quality
standards.
▪ It helps external auditors to show that all the internal processes are in place and well documented. ISO-9000 standards
implementation shows that all the processes used for manufacturing products are audited internally and well
documented.
▪ The ISO quality standards are frequently followed for food safety, data security in computers, agriculture, healthcare
industry, education institutions etc.
▪ In fact, Quality Standards developed by ISO impact our lives by giving quality and standard products and raising
standard of living.
▪ The standards are recognized internationally.

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EIGHT PRINCIPLES OF QUALITY MANAGEMENT

ISO standards are based on eight principles of quality management

that can be applied by senior managers to improve their
organization:
i) Customer Focus
o Customers are the backbone of the organization.

o The organizations must have clear understanding of the

customers’ needs and do their best to meet the needs.
Through regular survey the customers’ dissatisfaction
can be known.
ii) Leadership
o Leaders should be ready to take the front positions at
the time of problems.
o Only best leaders can guide their employees the right
vision.

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 ▪ iii) Involvement
o At the time of requirement or problem, the employees can be involved and their talent as
well as skills be utilized.

▪ iv) Process Approach

o Companies activates are managed in the form of processes. The input, transformation
and output are managed as a process.

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v) System approach to management
o At this step, all the processes of the organization are examined thoroughly.

vi) Continuous Improvements

o At this step, the management should try to find the long-term and consistent
solutions of the problems.
vii) Right approach of decision making
o The decision making must be based on the relevant data and information
subsequently.
viii) Long term relationships with Suppliers
o Long term relationships with the suppliers create value.

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Quality Improvement and Statistics

Definitions of Quality

Quality means fitness for use

- quality of design
- quality of conformance
Quality is inversely proportional to variability.

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Quality Improvement and Statistics

• Quality Improvement
Quality improvement is the reduction of variability in
processes and products.

Alternatively, quality improvement is also seen as “waste reduction”.

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What Is A Quality System?
The core concept of quality management is quality planning, quality controlling and
quality improvement.

A framework of management and technical practices that assure that environmental

data used to support decisions are:

• Of adequate quality and usability for their intended purpose

• Defensible

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 Common Steps in Quality System Design
• Prepare an overview of the current organization and its
environmental data operations

• Identify existing Quality System components or tools

• Document existing procedures as appropriate

• Develop procedures where necessary

• Document the Quality System design

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System Overview

Technical
Org. Data Use Responsibility Quality System Tools Used Notes
Activities

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Questions to Ask
• How does your organization use data (data generator, decision maker, regulatory)?
• What is the scope of technical activities within your organization (monitoring, regulatory
actions, inspections, characterizations, program oversight)?
• Who is responsible for planning, implementing, and assessing these technical activities?
• What tools are already in use or are mandated (QAPPs, SOPs,TSAs)?

The terms QAPP, SOP, and TSA are

Quality Assurance Project Plan
Standard Operating Procedure
Technical System Audit

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 Quality Audit
• Quality audit is the process of systematic examination
of a quality system carried out by an internal or
external quality auditor or an audit team.
• It is an important part of an organization's quality There are two types of quality audit in general use throughout the
management system and is a key element in the ISO
quality system standard, ISO 9001. various industries.They are internal and external quality audit.

• Audits are an essential management tool to be used for • Internal quality audits are carried out by a team,
o Verifying objective evidence of processes functionally placed under the top man directly, consisting
o To assess how successfully processes have been of experts grouped together for this function.
implemented
• External quality audits are carried out by independent
o For judging the effectiveness of achieving any
defined target levels organizations with a view to selecting the company with a

o To provide evidence concerning reduction and best quality philosophy and performance.
elimination of problem areas.
For the benefit of the organization, quality auditing
should not only report non-conformances and
corrective actions, but also highlight areas of good
practice.
In this way other departments may share information
and amend their working practices as a result, also
contributing to continual improvement.
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Internal Quality Audit

Internal quality audit can be divided into six different categories as listed below :
a) Quality system audit,
b) Management quality audits
c) Process quality audits,
d) Data processing quality audits
e) Product quality audit
f) Decision sampling audit

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Quality System Audit:
o Quality system audit is an audit of the quality system to determine the effectiveness and
compliance of the system with the pre-determined reference standard.
o Quality system audits evaluate the quality system as it applies to an overall or particular
elements within the organization.
o The reference standard for this type of quality audit is the quality programme of the
organization which defines its policies, procedures and work instructions.
o Conformity to the quality programme indicates a controlled and disciplined operation.
o Non-conformity to the quality programme, of course, indicates a lack of discipline and
control of the operation.

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 EXTERNAL QUALITY AUDIT

External quality audit can be divided into different categories as listed below :
a) Quality system certification
b) Vendor appraisal
c) Regulatory controls
d) Quality system improvement audit
e) Product certification.

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 Vendor appraisal
o The evaluation of the quality program is a joint vendor-vendee activity.
o It is efficiently achieved, it provides mutual benefit for all parties concerned.
o The vendor evaluates his quality program to ensure that the program is
accomplishing its intended functions effectively and economically.
o The vendee appraise his vendor' s quality program to check whether his vendor is
adept to produce the desired quality product.

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