Unit 2

Achieving, Sustaining and Improving Quality

THE FOUNDATIONS OF MODERN QUALITY MANAGEMENT: THE GURUS

Walter Shewhart.

- Walter Shewhart was a genuine pioneer in the field of quality control, and he became known
as the “father of statistical quality control.”
- He developed control charts for analyzing output of processes to determine when corrective
action was necessary.

W. Edwards Deming

- statistics professor at New York University in the 1940s, went to Japan after World War II to assist
the Japanese in improving quality and productivity.
- The Union of Japanese Scientists, who had invited Deming, were so impressed that in 1951, after
a series of lectures presented by Deming, they established the Deming Prize, which is awarded
annually to firms that distinguish themselves with quality management programs.

Joseph M. Juran

- Juran, like Deming, taught Japanese manufacturers how to improve the quality of their goods,
and he, too, can be regarded as a major force in Japan’s success in quality.
- Juran viewed quality as fitness-for-use. He also believed that roughly 80 percent of quality
defects are management controllable; thus, management has the responsibility to correct this
deficiency.
- He described quality management in terms of a trilogy consisting of quality planning, quality
control, and quality improvement

Armand Feigenbaum

- Feigenbaum was instrumental in advancing the “cost of non-conformance” approach as a

reason for management to commit to quality.
- He recognized that quality was not simply a collection of tools and techniques, but a “total
field.”
- According to Feigenbaum, it is the customer who defines quality.

Philip B. Crosby

- Crosby developed the concept of zero defects and popularized the phrase “Do it right the first
time.” He stressed prevention, and he argued against the idea that “there will always be some
level of defectives.”

Kaoru Ishikawa

- The late Japanese expert on quality was strongly influenced by both Deming and Juran,
although he made significant contributions of his own to quality management.
- Among his key contributions were the development of the cause-and-effect diagram (also
known as a fishbone diagram) for problem solving and the implementation of quality circles,
which involve workers in quality improvement.
- He was the first quality expert to call attention to the internal customer —the next person in the
process, the next operation, within the organization.
Genichi Taguchi

- Taguchi is best known for the Taguchi loss function, which involves a formula for determining the
cost of poor quality.
- The idea is that the deviation of a part from a standard causes a loss, and the combined effect
of deviations of all parts from their standards can be large, even though each individual
deviation is small.

Taiichi Ohno and Shigeo Shingo

- Taiichi Ohno and Shigeo Shingo both developed the philosophy and methods of kaizen, a Japanese
term for continuous improvement (defined more fully later in this chapter), at Toyota. Continuous
improvement is one of the hallmarks of successful quality management.

QUALITY AWARDS

• The Baldrige Award – annual award given by the U.S. government to recognize quality
achievements of U.S. companies.
• The European Quality Award – European award for organizational excellence.
• The Deming Prize - named in honor of the late W. Edwards Deming, is Japan’s highly coveted
award recognizing successful quality efforts.

QUALITY CERTIFICATION

• ISO 9000 – a set of international standards on quality management and quality assurance,
critical to international business.
• ISO 14000 – a set of international standards for assessing a company’s environmental
performance.
• ISO 24700 – a set of international standards that pertains to the quality and performance of
office equipment that contains reused components.

ISO 9000 standards include the following categories:

• System requirements
• Management requirements
• Resource requirements
• Realization of requirements
• Remedial requirements

Eight quality management principles form the basis of the latest version of ISO 9000:

1. A customer focus.
2. Leadership.
3. Involvement of people.
4. A process approach.
5. A system approach to management.
6. Continual improvement.
7. Use of a factual approach to decision making.
8. Mutually beneficial supplier relationships.

The standards for ISO 14000 certification bear upon three major areas:

Management systems —systems development and integration of environmental responsibilities into

business planning.
Operations —consumption of natural resources and energy.

Environmental systems —measuring, assessing, and managing emissions, effluents, and other waste
streams.

Total Quality Management

A philosophy that involves everyone in the organization in a continual effort to improve quality and
achieve customer satisfaction.

ELEMENTS OF TQM

1. Continuous improvement - The philosophy that seeks to improve all factors related to the
process of converting inputs into outputs on an ongoing basis.
Kaizen - refer to continuous improvement.
2. Competitive benchmarking - This involves identifying other organizations that are the best at
something and studying how they do it to learn how to improve your operation.
3. Employee empowerment - Giving workers the responsibility for improvements and the authority
to make changes to accomplish them provides strong motivation for employees.
4. Team approach - The use of teams for problem solving and to achieve consensus takes
advantage of group synergy, gets people involved, and promotes a spirit of cooperation and
shared values among employees.
5. Decisions based on facts rather than opinions - Management gathers and analyses data as a
basis for decision making.
6. Knowledge of tools - Employees and managers are trained in the use of quality tools.
7. Supplier Quality - Suppliers must be included in quality assurance and quality improvement
efforts so that their processes are capable of delivering quality parts and materials in a timely
manner.
8. Champion - A TQM champion’s job is to promote the value and importance of TQM principles
throughout the company.
9. Quality at the source - Quality at the source refers to the philosophy of making each worker
responsible for the quality of his or her work.
10. Suppliers - are partners in the process, and long-term relationships are encouraged.

Obstacles to Implementing TQM

1. Lack of a companywide definition of quality.

2. Lack of a strategic plan for change.
3. Lack of a customer focus.
4. Poor intraorganizational communication.
5. Lack of employee empowerment.
6. View of quality as a “quick fix”.
7. Emphasis on short-term financial results.
8. Inordinate presence of internal politics and “turf” issues.
9. Lack of strong motivation.
10. Lack of time to devote to quality initiatives.
11. Lack of leadership
PRODUCTIVITY - the quantitative relation between what we produce and what we use as a resource
to produce them, i.e., the arithmetic ratio of the amount produced (output) to the amount of resources
(input).
𝑂𝑢𝑡𝑝𝑢𝑡
𝑃𝑟𝑜𝑑𝑢𝑐𝑡𝑖𝑣𝑖𝑡𝑦 =
𝐼𝑛𝑝𝑢𝑡

Factors Influencing Productivity

A. CONTROLLABLE (OR INTERNAL) FACTORS

1. Product factor - In terms of productivity means the extent to which the product meets output
requirements product is judged by its usefulness.
2. Plant and equipment - These play a prominent role in enhancing the productivity. The increased
availability of the plant through proper maintenance and reduction of idle time increases the
productivity.
3. Technology - Innovative and latest technology improves productivity to a greater extent.
4. Material and energy - Efforts to reduce materials and energy consumption brings about
considerable improvement in productivity.
5. Human factors - Productivity is basically dependent upon human competence and skill.
6. Work methods - Improving the ways in which the work is done (methods) improves productivity,
work study and industrial engineering techniques and training are the areas which improve the
work methods, which in term enhances the productivity.
7. Management style - This influence the organizational design, communication in organization,
policy and procedures.
B. UN-CONTROLLABLE (OR EXTERNAL) FACTORS
1. Structural adjustments - Structural adjustments include both economic and social changes.
2. Natural resources - Manpower, land and raw materials are vital to the productivity
improvement.
3. Government and infrastructure - Government policies and programmes are significant to
productivity practices of government agencies, transport and communication power, fiscal
policies (interest rates, taxes) influence productivity to the greater extent

Total Productivity Measure (TPM)

𝑇𝑜𝑡𝑎𝑙 𝑇𝑎𝑛𝑔𝑖𝑏𝑙𝑒 𝑂𝑢𝑡𝑝𝑢𝑡
𝑇𝑜𝑡𝑎𝑙 𝑃𝑟𝑜𝑑𝑢𝑐𝑡𝑖𝑣𝑖𝑡𝑦 =
𝑇𝑜𝑡𝑎𝑙 𝑇𝑎𝑛𝑔𝑖𝑏𝑙𝑒 𝐼𝑛𝑝𝑢𝑡
𝑇𝑜𝑡𝑎𝑙 𝑇𝑎𝑛𝑔𝑖𝑏𝑙𝑒 𝑂𝑢𝑡𝑝𝑢𝑡
= 𝑉𝑎𝑙𝑢𝑒 𝑜𝑓 𝐹𝑖𝑛𝑖𝑠ℎ𝑒𝑑 𝐺𝑜𝑜𝑑𝑠 𝑃𝑟𝑜𝑑𝑢𝑐𝑒𝑑 + 𝑉𝑎𝑙𝑢𝑒 𝑜𝑓 𝑃𝑎𝑟𝑡𝑖𝑎𝑙 𝑈𝑛𝑖𝑡𝑠 𝑃𝑟𝑜𝑑𝑢𝑐𝑒𝑑
+ 𝐷𝑒𝑖𝑣𝑖𝑑𝑒𝑛𝑡𝑠 𝑓𝑟𝑜𝑚 𝑆𝑒𝑐𝑢𝑟𝑡𝑖𝑒𝑠 + 𝐼𝑛𝑡𝑒𝑟𝑒𝑠𝑡 + 𝑂𝑡ℎ𝑒𝑟 𝐼𝑛𝑐𝑜𝑚𝑒
𝑇𝑜𝑡𝑎𝑙 𝑇𝑎𝑛𝑔𝑖𝑏𝑙𝑒 𝐼𝑛𝑝𝑢𝑡
= 𝑉𝑎𝑙𝑢𝑒 𝑜𝑓 (ℎ𝑢𝑚𝑎𝑛 + 𝑚𝑎𝑡𝑒𝑟𝑖𝑎𝑙
+ 𝑜𝑡ℎ𝑒𝑟 𝑖𝑛𝑝𝑢𝑡𝑠) 𝑢𝑠𝑒𝑑. 𝑇ℎ𝑒 𝑤𝑜𝑟𝑑 𝑡𝑎𝑛𝑔𝑖𝑏𝑙𝑒 ℎ𝑒𝑟𝑒 𝑟𝑒𝑓𝑒𝑟𝑠 𝑡𝑜 𝑚𝑒𝑎𝑠𝑢𝑟𝑎𝑏𝑙𝑒.

Partial Productivity Measures (PPM)

𝑇𝑜𝑡𝑎𝑙 𝑂𝑢𝑡𝑝𝑢𝑡
𝑃𝑎𝑟𝑡𝑖𝑎𝑙 𝑃𝑟𝑜𝑑𝑢𝑐𝑡𝑖𝑣𝑖𝑡𝑦 =
𝐼𝑛𝑑𝑖𝑣𝑖𝑑𝑢𝑎𝑙 𝐼𝑛𝑝𝑢𝑡
𝑇𝑜𝑡𝑎𝑙 𝑂𝑢𝑡𝑝𝑢𝑡
𝐿𝑎𝑏𝑜𝑢𝑟 𝑃𝑟𝑜𝑑𝑢𝑐𝑡𝑖𝑣𝑖𝑡𝑦 =
𝐿𝑎𝑏𝑜𝑟 𝐼𝑛𝑝𝑢𝑡
Labour input is measured in terms of man-hour
𝑇𝑜𝑡𝑎𝑙 𝑂𝑢𝑡𝑝𝑢𝑡
𝐶𝑎𝑝𝑖𝑡𝑎𝑙 𝑃𝑟𝑜𝑑𝑢𝑐𝑡𝑖𝑣𝑖𝑡𝑦 =
𝐶𝑎𝑝𝑖𝑡𝑎𝑙 𝐼𝑛𝑝𝑢𝑡
𝑇𝑜𝑡𝑎𝑙 𝑂𝑢𝑡𝑝𝑢𝑡
𝑀𝑎𝑡𝑒𝑟𝑖𝑎𝑙 𝑃𝑟𝑜𝑑𝑢𝑐𝑡𝑖𝑣𝑖𝑡𝑦 =
𝑀𝑎𝑡𝑒𝑟𝑖𝑎𝑙 𝐼𝑛𝑝𝑢𝑡
𝑇𝑜𝑡𝑎𝑙 𝑂𝑢𝑡𝑝𝑢𝑡
𝐸𝑛𝑒𝑟𝑔𝑦 𝑃𝑟𝑜𝑑𝑢𝑐𝑡𝑖𝑣𝑖𝑡𝑦 =
𝐸𝑛𝑒𝑟𝑔𝑦 𝐼𝑛𝑝𝑢𝑡

Productivity Improvement Techniques

A. TECHNOLOGY BASED
1. Computer Aided Design (CAD), Computer Aided Manufacturing (CAM), and Computer
Integrated Manufacturing Systems (CIMS)

CAD refers to the design of products, processes or systems with the help of computers.

CAM is very much useful for design and control manufacturing.

2. Computer integrated manufacturing - is characterized by automatic line balancing, machine
loading (scheduling and sequencing), automatic inventory control and inspection.
B. EMPLOYEE BASED
1. Financial and non-financial incentives at individual and group level.
2. Employee promotion.
3. Job design, job enlargement, job enrichment and job rotation.
4. Worker participation in decision-making
5. Quality Circles (QC), Small Group Activities (SGA)
6. Personal development.
C. MATERAL BASED
1. Material planning and control
2. Purchasing, logistics
3. Material storage and retrieval
4. Source selection and procurement of quality material
5. Waste elimination.
D. PROCESS BASED
1. Methods engineering and work simplification
2. Job design evaluation, job safety
3. Human factors engineering.
E. PRODUCT BASED
1. Value analysis and value engineering
2. Product diversification
3. Standardization and simplification
4. Reliability engineering
5. Product mix and promotion.
F. TASK BASED
1. Management style
2. Communication in the organization
3. Work culture
4. Motivation
5. Promotion group activity