20ME35 TOTAL QUALITY MAMANGE MENT

B.Tech. (VIISem.) 20ME35-TOTALQUALITY MANAGEMENT

3 - - 3

PRE-REQUISITES: Nil
COURSEEDUCATIONALOBJECTIVE:
The main objective of this course is to familiarize the concepts of quality management
techniques in industries.
COURSEOUTCOMES: At the end of the course, the student will be able to
CO1:Comprehend the principles and strategies of quality control.(Understanding -L2)
CO2:Apply the principles of total quality management to improve the quality of the product.
(Applying-L3)
CO3:Choose the appropriate statistical quality control tool to check the process capability.

(Applying-L3)
CO4:Examine various TQM techniques for industrial applications.(Applying-L3)
CO5:Interpret ISO quality standards in an organization. (Understanding - L2)

UNIT-I
INTRODUCTION: Evolution of total quality management, Definition of Quality, Quality
costs,Quality Council, Strategic Planning, Deming Philosophy, Barriers to TQM Implementation.

UNIT-II
TQM PRINCIPLES: Customer satisfaction- Types of Customers, customer supply chain,customer
perception of quality, customer feedback, customer retention, Service quality. Employee Involvement,
Motivation, Maslow’s hierarchy of needs, Herzberg theory, Empowerment and Team work,
Performance appraisal, Benefits.
CONTINUOUS PROCESS IMPROVEMENT: Continuous process improvement- Juran Trilogy,
PDSA cycle, 5S, Kaizen, Supplier Partnership- Partnering, sourcing, supplier selection,Performance
Measures-Basic Concepts, Strategy, Performance Measure.

UNIT-III
STATISTICAL PROCESS CONTROL: The seven tools of quality, Statistical Fundamentals,
Population and Sample, Normal curve, Control charts for variables and attributes, Process Capability.

SIX SIGMA:
Introduction to six sigma, indicators of six sigma, principle, elements, process, advantages, limitations,
applications.

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UNIT-IV
TQM TOOLS: Benchmarking, Benchmarking Process, Quality Function Deployment
(QFD), House of Quality, QFD Process, Taguchi Quality Loss Function, Total Productive
Maintenance- Concept, improvement needs, FMEA- Stages of FMEA.

UNIT-V
QUALITY SYSTEMS: Need for ISO 9000 and other Quality systems, ISO 9000:2000
Quality System, Implementation of Quality system, Documentation, Quality Auditing, TS
16949, ISO 14000- concepts.

TEXT BOOK
1. DaleH.Besterfiled, etal., TotalQuality Management,Pearson Education,3rd Edition 2010.

REFERENCES
1. JamesR.Evans&WilliamM.Lidsay,TheManagementandControlofQuality,South-
Western (Thomson Learning), 2002.
2. Feigenbaum.A.V,Total QualityManagement,MCGraw-Hill,2005.
3. NarayanaV.andSreenivasan,N.S,QualityManagement-ConceptsandTasks,NewAge
International, 2006.
4. Zeiri,TotalQualityManagementforEngineers, WoodHeadPublishers,2009.

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UNIT I – INTRODUCTION

TQM is defined as both philosophy and a set of guiding principles that represent the
foundation of continuously improving organization. It is the application of quantitative
methods and human resources to improve all the process within the organization and exceed
customer needs now and in the future.

Definition of quality

Total Quality Management (TQM) refers to management methods used to enhance

quality and productivity in business organizations. TQM is a comprehensive management
approach that works horizontally across an organization, involving all departments and
employees and extending backward and forward to include both suppliers and
clients/customers. Total Quality Management (TQM) refers to management methods used to
enhance quality and productivity in business organizations. TQM is a comprehensive
management approach that works horizontally across an organization, involving all
departments and employees and extending backward and forward to include both suppliers
and clients/customers. Total Quality Management (TQM) refers to management methods
used to enhance quality and productivity in business organizations. TQM is a
comprehensive management approach that works horizontally across an organization,
involving all departments and employees and extending backward and forward to include
both suppliers and clients/customers.

One of the important issues that business has focused on in the last two decades is
quality. The other issues are cost and delivery. Quality has been widely considered as a
key element for success in business in the present competitive market. Quality refers to
meeting the needs and expectations of customers. It is important to understand that quality
is about more than a product simply working properly.

Quality refers to certain standards and the ways and means by which those standards
are achieved, maintained and improved. Quality is not just confined to products and
services. It is a homogeneous element of any aspect of doing things with high degree of
perfection. For example Business success depends on the quality decision making.

EVOLUTION OF QUALITY

Time Until 1960s Events

Quality is an art
Prior to the 20th century Demands overcome potential production
An era of workmanship
The scientific approach to management
F.Taylor
resulting in rationalization of work and its
1900s
break down leads to greater need for

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standardization, inspection and

supervision
Statistical beginnings and study of quality
Shewart control. In parallel, studies by R A Fisher
1930s on experimental design; the beginning of
control charts at western Electric in USA
Late Quality standards and approaches are
1930s introduced in France and Japan.
Beginning of SQC, reliability and
maintenance engineering
Seminal work by Deming at the ministry
of war in USA on quality control and
sampling
1942 Working group setup by Juran and Dodge
on SQC in US army
Concepts of acceptance sampling devised
Daodge and Deming carried out seminal
1944
research on acceptance sampling
Founding of the Japan standard
1945
association
1946 Founding of the ASQC
Visit of Deming in Japan at the invitation
1950
of K Ishikawa
1951 Quality assurance increasingly accepted
1954 TQC in Japan ; Book published 1956
Founding of European organization for the
1957
control of quality
After 1960s
The Martin Co in USA introduces the zero
defects approach while developing and
1961 producing Pershing Missiles. Quality
motivation is starting in the US and
integrated programmes begun
1962 Quality circles are started in Japan

Define Quality .

 Predictable degree of uniformity and dependability at low cost and suited

to the market -Deming
 Fitness for use-Juran
 Conformance to requirements - Crosby

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 Minimum loss imparted by a product to society from the time the

product is shipped - Taguchi
 A way of managing tile organization -Feigenbaum
 Correcting and preventing loss, not living with loss - Hosffin .

 The totality of characteristics of an entity that bear on its ability to satisfy

stated and implied needs – ISO

QUANITIFICATION OF QUALITY
Q= P / E

P = Performance
E = Expectations
Q = Quality

DIMENSION OF QUALITY

Quality has 2 dimensions. These dimensions are product and service quality.

Dimensions of product quality:

1. Performance: primary product characteristics, e.g. picture brightness in TV.

2. Features: secondary characteristics, added features, e.g. remote control, picture-in-picture.
3. Usability: ease of use with minimum training.

4. Conformance: meeting specifications, industry standards,. (E.g. ISI specs., emission norms)
5. Reliability: consistency of performance over a specified time period under specified
conditions.
6. Durability: extent of useful life, sturdiness.
7. Maintainability/Serviceability: ease of attending to maintenance, repairs.
8. Efficiency: ratio of output to input. E.g. mileage, braking distance, processing time.

9. Aesthetics: sensory characteristics, e.g. appearance, exterior finish, texture, color, shape,
etc.

10. Reputation: subjective assessment based of past performance, brand image, industry
ranking.
11. Safety: in items like pressure cookers, electrical items, toys, cranes, etc.

Dimensions of service quality:

1. Time: how much time a customer must wait / undergo service.
2. Timeliness: whether service will be performed when promised.
3. Completeness: whether all items in the order are included.

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4. Consistency: consistent service every time, and for every customer. Reliability of
service.
5. Accessibility/Convenience: ease of obtaining the service.
6. Accuracy: absence of mistakes.
7. Responsiveness: quick response, resolution of unexpected problems.
8. Courtesy: cheerful, friendly service.
9. Competency/Expertise: In professions like doctors, lawyers, mechanics, etc.

DIMENSION OF QUALITY
Product quality Service quality
Performance Time
Features Timeliness
Usability Completeness
Conformance Consistency
Reliability Accessibility/Convenience
Durability Accuracy
Maintainability/Serviceability Responsiveness
Efficiency Courtesy
Aesthetics Competency/Expertise
Reputation
Safety

TQM BASIC CONCEPTS

1. Management Involvement – Participate in quality program, develop quality council,

direct participation

2. Focus on customer – who is the customer – internal and external, voice of the customer,
do it right first time and every time.
3. Involvement and utilization of entire work force – All levels of management

4. Continuous improvement – Quality never stops, placing orders, bill errors, delivery,
minimize wastage and scrap etc.
5. Treating suppliers as partners – no business exists without suppliers.
6. Performance measures – creating accountability in all levels

Quality Council

A Quality Council is a crucial component of Total Quality Management (TQM) that oversees and
coordinates quality-related activities across an organization. Its primary objective is to foster a
culture of quality and continuous improvement.

Typical responsibilities of a Quality Council include:

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1. Setting quality vision and goals

2. Developing and implementing quality policies and strategies
3. Monitoring and reviewing quality performance metrics
4. Identifying and prioritizing improvement opportunities
5. Allocating resources for quality initiatives
6. Providing training and awareness programs
7. Recognizing and rewarding quality achievements
8. Facilitating communication and collaboration across departments
9. Ensuring alignment with industry standards and best practices
10. Reporting to top management on quality performance and progress

The Quality Council typically comprises representatives from various departments, including:

1. Senior leadership
2. Quality assurance
3. Operations
4. Customer service
5. Engineering
6. Manufacturing
7. Supply chain management
8. HR and training

By having a diverse representation, the Quality Council ensures a holistic approach to quality
management, driving organization-wide commitment to TQM principles and continuous
improvement.

Cost of Quality

Cost of Quality Definition: Cost of Quality can be termed as the process that measures and determines
where and how organizations’ resources are utilized to maintain quality and prevent poor outputs. It can
be regarded as a method of process improvement and quality assurance and prevents internal and
external audit failures.

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Incurring this cost is, of course, important as when firms spend on improving the quality of products and
services, it helps them enhance their brand name in the market. However, keeping this expense of
maintaining quality assessment tools active controlled without compromising on the product quality is
also a great attempt. This is because in such a scenario, the amount saved is yet again used to improve the
quality of the products.

Table of contents

 Cost of Quality Definition

o Cost of Quality Explained
o Types
o Formula
o Examples
o How To Reduce?
o Importance
o Benefits
o Cost of Quality vs Cost of Poor Quality (COPQ)
o Recommended Articles

Cost of Quality Explained

The cost of quality model signifies the costs the business has to bear to utilize its resources to maintain
qualitative outputs to its targeted customers. If the business does not employ its resources to adhere to
quality metrics, it will lose out on its competitive advantage. Furthermore, if the cost of quality is not
incorporated, it can severely impact the business’s bottom line.

It discusses the organization’s costs while trying to achieve and maintain quality output. The companies
determine the cost of quality to derive a competitive advantage in the industry. By investing a fixed
amount towards this cost, the business ensures that the failures are reduced and defects are eliminated.

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The quality cost ensures that the business maintains a positive bottom line. If the company does not
incorporate this cost, the business can incur high failure costs in the form of product returns and warranty
costs, which can, in turn, dampen the bottom line altogether.

Types

There are four broad components: prevention costs, internal failure costs, external failure costs, and
appraisal costs.

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#1 – Prevention Costs

The prevention costs can be regarded as the costs the business incurs to reduce and minimize defects. The
prevention costs are determined at the start of every new process step. The prevention costs are highly
regarded as saving organized labor and manufacturing costs. If the business does not undertake the
prevention costs, it could result in high defect costs at a later stage, which could prove to be expensive for
the business.

#2 – Appraisal Costs

The appraisal costs can be regarded as the costs that the business incurs when it works towards
identifying defective items. It is done before any product has to be shipped to the end consumer. The
quality checks professional inspect finished goods in the process inventory and raw materials.
#3 – Internal Failure

Internal failure costs are the cost that the business or corporate entity has to bear once the defective items
are identified before proceeding with the shipment. These costs signify the direct material,
manufacturing overhead, and direct labor consumed by each defective item.
#4 – External Failure

The external failure costs are costs the business has to bear on account of defective items shipped to the
customers. These costs are often regarded as expensive as they would cause the business to incur high
warranty and return costs along with already incurred manufacturing overheads.
Formula

The mathematical expression to help one learn about how to calculate cost of quality is:

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Cost of quality = CoGQ + CoPQ

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It can further be expressed as displayed below: –

Cost of Quality = P C + A C + IFC + EFC

Here,

 The cost of good quality is represented as CoGQ.

 The cost of poor quality is represented as CoPQ.
 The prevention cost is represented as a PC.
 AC represents the appraisal costs;
 IFC represents the internal failure costs.
 EFC represents the external failure costs.

Examples

Let us consider the following instances to understand what is cost of quality and also learn how to
calculate it:

Example #1

Let us take the example of a business that generates $1,000,000 in sales. It incurs $10,200 in Quality
checks and inspections. It pays $30,000 for appraising the purchased raw materials. Additionally, it pays
$15,000 for repairs on finished items. It maintains a provision of $5,000 for warranty costs and product
returns. Help the management determine the cost of quality as a percentage of sales.

Solution:

Step 1: Calculation of Total CoGQ

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=$10200+$30000
=$40200

Step 2: Calculation of Total CoPQ

=$15000+$5000
=$20000

Step 3: Calculation of Total CoQ

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=$20000+$40200
=$60200

Step 4: Calculation of cost of quality as the percentage of sales

=$60200/$1000000
=6.02%

The inspection checks and appraisal costs on raw materials account for the CoGQ. The costs of repairs,
warranty, and product returns account for the CoPQ.

Example #2

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In June 2023, John Hopkins researchers published a report on The Volume and Cost of Quality Metric
Reporting whereby they noted that the hospital used major resources for quality reporting and the tools
and methods used to assess the quality of the systems and resources in the hospital are quite expensive.

The researchers, however, inferred that reducing the number of metrics for quality assessment should be
considered by hospital authorities and they must take shifting to electronics metrics seriously. Overall, it
was suggested through the report that the hospital must optimize resources for providing better services
than quality assessment.

How To Reduce?

The cost incurred in maintaining the cost of quality is significant. As a result, firms or entities often think
o implementing ways to reduce this expense. However, reduction in the quality cost is not about
compromising with the product or service quality.

There are multiple ways in which the quality cost can be reduced. Some of them include:

 Identifying the systemic issues beforehand and take early corrective measures so that not much expense is
made to deal with it at a later stage.
 In case entities plan to implement a change, they must consider change management tools to understand
the repercussions of bringing about that change. These tools help figure out if the transition would be
smooth or involve rough transformation for which the entities may have to remain prepared beforehand.
 Identifying operational errors and making sure they do not occur at a later stage. This is because such
errors involve huge damage control cost, thereby making it a huge expense for the firms. Conducting
training programs help entities have professionals who can identify and prevent such errors.
 Implementing various risk management techniques to avoid errors at advanced stages. To achieve this, the
entities can ensure thorough audit management, proper financial reporting, and compliance with
regulatory requirements.
 Enhancing or setting standards for suppliers’ quality is an essential step that one may take to reduce
quality costs. Specifying benchmark performance and enhancing communication with the supplier is a
must to make sure they are providing standard quality supplies based on the quality standards that a firm
ensures for its finished products.

Importance

The determination of the cost of quality remains to be critical and varies for different organizations. If this
cost is not measured and quantified, the organizations working in the competitive industries would never
gain the upper hand and survive the ever-changing dynamic environment. Therefore, measuring it is
necessary as it helps the business maintain a healthy and positive bottom line.

It is a fundamental methodology as it allows the business to derive a competitive edge over its peers
working in the industry. These costs ensure that problems and root causes that can impact the business are
identified very early, and preventive actions can be undertaken.

It also helps the organization devise and determine the corrective actions for any potential failures. It
usually happens when an organization identifies defective products before and after shipping to the
customers.

Benefits

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The cost of quality helps the business derive a competitive edge over its peers working in the industry. It
allows the organization to plan for costs that the business has to incur in maintaining quality costs and
helps the organization make provisions over them, which helps the organization maintain a favorable
bottom line.

Some of the advantages of incurring the cost of quality include:

 It helps the organization to chalk out wrong and poor-quality output.

 It helps in problem-solving, wherein it performs cost and benefits analysis on quality and process
improvement initiatives.
 The model or cost of quality helps in a single-point evaluation of quality performance.
 It further evaluates the costs of failures and appraises them accordingly.

Cost of Quality vs Cost of Poor Quality (COPQ)

Cost of quality and cost of poor quality are two terms that are often used interchangeably, but then they
share a considerable number of differences.

Let us have a look at the distinction between the two below:

 The cost of poor quality (CoPQ) is a subset of the cost of quality.

 The CoPQ is the business cost incurred when the defective products are identified before and after
shipping to customers.
 Therefore, the sum of internal and external failure costs can be termed the CoPQ.
 The CoPQ usually consists of product return costs and warranty costs related to the products.
 On the other hand, the cost of quality is determined by the CoGQ and CoPQ.
 It is determined as the sum of the cost of good quality and poor quality.
 The cost of quality takes into account prevention costs, appraisal costs, internal failure costs, and external
failure costs.
 The prevention and appraisal costs do not constitute the CoPQ as such costs attempt to identify defective
products at the beginning of the production process.
 The CoPQ arises after the end of the production process and on defective finished goods.

Quality costs, OVER VIEW.

Quality costs, also known as cost of quality (COQ), refer to the expenses associated with ensuring a
product or service meets quality standards, as well as the costs of failing to meet those standards. Dr.
Deming famously stated, "Quality is free," meaning that investing in quality upfront saves money in the
long run.

There are four main categories of quality costs:

1. Prevention costs:

- Investments in processes, training, and equipment to prevent defects and errors.

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- Examples: Quality planning, process control, and employee training.

2. Appraisal costs:

- Costs associated with evaluating and testing products or services to ensure they meet quality
standards.

- Examples: Inspection, testing, and certification.

3. Internal failure costs:

- Costs resulting from defects or errors found before delivery to customers.

- Examples: Rework, scrap, and downtime.

4. External failure costs:

- Costs resulting from defects or errors found after delivery to customers.

- Examples: Warranty claims, repairs, replacements, and lost business due to poor reputation.

Examples of quality costs include:

- Inspection and testing costs

- Rework and repair costs

- Warranty and liability costs

- Product recall costs

- Training and education costs

- Quality planning and management costs

- Equipment and tooling costs

- Scrap and waste disposal costs

- Downtime and lost productivity costs

By understanding and managing quality costs, organizations can optimize their quality management
systems, reduce waste, and improve customer satisfaction.

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Here is a detailed breakdown of quality costs, including examples:

Prevention Costs

Quality planning and development

- Creating quality policies and procedures

- Developing quality goals and objectives

Process control and improvement

- Implementing process controls and monitoring

- Conducting process audits and assessments

Training and education

- Providing quality-related training for employees

- Conducting workshops and conferences

- Equipment and tooling

- Purchasing equipment and tools for quality control

- Maintaining and calibrating equipment

Quality management and administration

- Salaries and benefits for quality staff

- Quality department overhead costs

Appraisal Costs

Inspection and testing

- Conducting incoming inspection of raw materials

- Performing in-process inspections

- Conducting final inspections and testing

Certification and compliance

- Obtaining certifications (e.g., ISO 9001)

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- Compliance with regulatory requirements

Quality audits and assessments

- Conducting internal audits

- Hiring external auditors

Laboratory testing and analysis

- Conducting physical and chemical testing

- Analyzing test results

Internal Failure Costs

- Rework and repair

- Correcting defects and errors

- Rebuilding or reworking products

Scrap and waste disposal

- Disposing of scrap materials

- Recycling or reusing materials

Downtime and lost productivity

- Time lost due to equipment failures

- Reduced productivity due to quality issues

Yield losses

- Loss of product due to quality issues

- Reduced yield rates

External Failure Costs

- Warranty and liability costs

- Repairing or replacing products under warranty

- Paying damages or settlements

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Returns and refunds

- Processing returns and refunds

- Handling customer complaints

Reputation and goodwill costs

- Loss of customer loyalty and trust

- Negative publicity and reputation damage

Service and support costs

- Providing support and service for defective products

- Resolving customer issues

By understanding and tracking these quality costs, organizations can identify areas for improvement and
optimize their quality management systems to reduce costs and improve customer satisfaction.

STRATEGIC QUALITY PLANNING

It sets the long term direction of the organization in which it wants to proceed in
future. Can be defined "As the process of deciding on objectives of the organization, on
changes on this objective,

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on the resource used to obtain these objectives and on the policies that are to govern the acquisition
use and disposition of these resources"

Quality statements

VISION STATEMENT: It is a short declaration of what an organization aspires to be

tomorrow. It is an ideal state which may never be achieved.

Example: To continuously enrich knowledge base of practioners in mobility industry and

institutions in the service of humanity - SAE

MISSION STATEMENT: Describes the function of the organization. It provides the clear
statement of purpose for the employees, customers and suppliers.

Example: “Facilitating world class technical education through high quality institutions,
academic excellence and innovative research and development programmes, technology
forecasting and global manpower planning, promoting industry institute interaction,
inculcating entrepreneurship - AICTE

QUALITY POLICY STATEMENT: It is a guide for everyone in the organization as to how

they provide products and services to the customer. Written by the CEO feedback from
workforce and approved by quality council.

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Example: Xerox is a quality company. Quality is the basic business principle for Xerox.
Quality means providing our external and internal customers with innovative products and
service that fully satisfy their requirements. Quality is the job of every employee – Xerox
Corporation

TQM DEFINITION

1. TQM is the management approach of an organization, centered on quality, based on me

participation of all its members and aiming at long-term success through customer
satisfaction. and benefits to all members of me organization and to society.- ISO

2. TQM is an integrated organizational approach in delighting customers (both internal and

external) by meeting their expectations on a continuous basis through everyone involved with
the organization working on continuous improvement in all products, services, and processes
along with proper problem solving methodology.

3. TQM is people - focused management system that aims at continual increase in customer
satisfaction at continually lower cost. TQM is a total system approach (not a separate area of
program), and an integral part of high level strategy. It works horizontally across functions
and departments, involving all employees, top to bottom, and exceeds backwards and forward
to include the supply chain and the customer chain.

TQM Framework

Contributions of Deming, Juran and Crosby

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Deming philosophy
The Deming philosophy, also known as Total Quality Management (TQM), is a management
approach developed by W. Edwards Deming. It emphasizes continuous improvement, customer
satisfaction, and employee involvement to achieve quality and performance excellence. Key
principles include:
1. Quality is the top priority: Focus on quality to build customer loyalty and drive business success.
2. Continuous improvement: Regularly evaluate and improve processes to reduce waste and increase
efficiency.
3. Customer-centricity: Understand and meet customer needs to exceed their expectations.
4. Employee empowerment: Encourage and support employee involvement in improvement efforts.
5. Data-driven decision-making: Use data and statistics to drive decisions, rather than relying on
intuition.
6. Process focus: Manage processes, not just results, to achieve desired outcomes.
7. Collaboration and teamwork: Foster a culture of cooperation and mutual respect.
8. Long-term thinking: Prioritize long-term success over short-term gains.

Deming's philosophy has influenced organizations worldwide, leading to improved quality,

productivity, and customer satisfaction.
The concept of quality is at the core of many of our ideas about effective management and
leadership, and programs like Total Quality Management and Six Sigma have been at the
heart of many companies' success.

Before things like globalization and technological advances became so important,

competitive pressures were typically much lower, and companies were usually satisfied with
focusing their quality efforts on the production process alone.

Now, quality is often thought to start and end with the customer, and all points leading to and
from the customer must aim for high-quality service and interaction.

But to be truly successful, quality needs to be built into every level of a company, and
become part of everything the organization does. From answering the phone to assembling
products and serving the end customer, quality is key to organizational success.

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Deming's 14-Point Philosophy is a great tool you can use to build quality in at every level of
your business. In this article, we'll look at Deming's Philosophy in more detail and how you
can use it.

What Is Deming's 14-Point Philosophy ?

Dr. W. Edwards Deming is largely credited with the focus on quality within business to
achieve success. A statistician who went to Japan to help with the census after World War II,
Deming also taught statistical process control to leaders of prominent Japanese businesses.
His message was this: By improving quality, companies will decrease expenses as well as
increase productivity and market share.

After applying Deming's techniques, Japanese businesses like Toyota, Fuji, and Sony saw
great success. Their quality was far superior to that of their global competitors, and their
costs were lower. The demand for Japanese products soared – and by the 1970s, many of
these companies dominated the global market. American and European companies realized
that they could no longer ignore the quality revolution.

So the business world developed a new appreciation for the effect of quality on production
and price. Although Deming didn't create the phrase "Total Quality Management," he's
credited with starting the movement. He didn't receive much recognition for his work until
1982, when he wrote the book now titled "Out of the Crisis," which summarized his famous
14-point management philosophy. [1]

There's much to learn from these 14 points. Study after study of highly successful companies
shows that following the philosophy leads to significant improvements. That's why these 14
points have since become a standard reference for quality transformation.

Note:

Deming's points apply to any type and size of business. Service companies need to control
quality just as much as manufacturing companies. And the philosophy applies equally to
large multinational corporations, different divisions or departments within a company, or
even single-person operations.

Deming's 14-Point Philosophy

1. Create a Constant Purpose Toward Improvement
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 Plan for quality in the long term.

 Resist reacting with short-term solutions.
 Don't just do the same things better – find better things to do.
 Predict and prepare for future challenges, and always have the goal of getting better .

2. Adopt the New Philosophy

 Embrace quality throughout the organization.

 Put your customers' needs first, rather than react to competitive pressure – and design
products and services to meet those needs.
 Be prepared for a major change in the way business is done. It's about leading, not simply
managing.
 Create your quality vision , and implement it.

3. Stop Depending on Inspections

 Inspections are costly and unreliable – and they don't improve quality, they merely find a
lack of quality.
 Build quality into the process from start to finish.
 Don't just find what you did wrong – eliminate the "wrongs" altogether.
 Use statistical control methods – not physical inspections alone – to prove that the process is
working.

4. Use a Single Supplier for Any One Item

 Quality relies on consistency – the less variation you have in the input, the less variation
you'll have in the output.
 Look at suppliers as your partners in quality. Encourage them to spend time improving their
own quality – they shouldn't compete for your business based on price alone.
 Analyze the total cost to you, not just the initial cost of the product.
 Use quality statistics to ensure that suppliers meet your quality standards.

5. Improve Constantly and Forever

 Continuously improve your systems and processes. Deming promoted the Plan-Do-Check-
Act approach to process analysis and improvement.
 Emphasize training and education so everyone can do their jobs better.
 Use kaizen as a model to reduce waste and to improve productivity, effectiveness, and safety.

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6. Use Training on the Job

 Train for consistency to help reduce variation.

 Build a foundation of common knowledge.
 Allow workers to understand their roles in the "big picture."
 Encourage staff to learn from one another, and provide a culture and environment for
effective teamwork.

7. Implement Leadership

 Expect your supervisors and managers to understand their workers and the processes they
use.
 Don't simply supervise – provide support and resources so that each staff member can do
their best. Be a coach not a policeman.
 Figure out what each person actually needs to do their best. For example, hardware, software,
other tools, and training.
 Emphasize the importance of participative management and transformational leadership .
 Find ways to reach full potential, and don't just focus on meeting targets and quotas.

8. Eliminate Fear

 Allow people to perform at their best by ensuring that they're not afraid to express ideas or
concerns.
 Let everyone know that the goal is to achieve high quality by doing more things right – and
that you're not interested in blaming people when mistakes happen.
 Make workers feel valued, and encourage them to look for better ways to do things.
 Ensure that leaders are approachable and that they work with teams to act in the company's
best interests.
 Use open and honest communication to remove fear from the organization.

9. Break Down Barriers Between Departments

 Build the "internal customer" concept – recognize that each department or function serves
other departments that use their output.
 Build a shared vision.
 Use cross-functional teamwork to build understanding and reduce adversarial relationships.
 Focus on collaboration and consensus instead of compromise.

10. Get Rid of Unclear Slogans

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 Let people know exactly what you want – don't make them guess. "Excellence in service" is
short and memorable, but what does it mean? How is it achieved? The message is clearer in a
slogan like "Always be striving to be better."
 However, don't let words and nice-sounding phrases replace effective leadership. Outline
your expectations, and then praise people face-to-face for doing good work.

11. Eliminate Management by Objectives

 Look at how processes are carried out, not just numerical targets. Deming said that
production targets can encourage high output but result in low quality.
 Provide support and resources so that both production levels and quality are high and
achievable.
 Measure the process rather than the people behind the process.

Tip:
There are situations in which approaches like Management By Objectives are appropriate, for
example, in motivating sales-people. As Deming points out, however, there are many
situations where a focus on objectives can lead people to cut corners with quality.

You'll need to decide for yourself whether or not to use these approaches. If you do, make sure
that you think through the behaviors that your objectives will motivate.

12. Remove Barriers to Pride of Workmanship

 Allow everyone to take pride in their work without being rated or compared.
 Treat workers equally, and don't make them compete with colleagues for monetary or other
rewards. Over time, the quality system will naturally raise the level of everyone's work to an
equally high level.

13. Implement Education and Self-Improvement

 Improve the current skills of workers.

 Encourage people to learn new skills to prepare for future changes and challenges.
 Build skills to make your workforce more adaptable to change, and better able to find and
achieve improvements.

14. Make "Transformation" Everyone's Job

 Improve your overall organization by having each person take a step toward quality.
 Analyze each small step, and ask yourself how it fits into the bigger picture.
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 Use effective change management principles to introduce the new philosophy and ideas in
Deming's 14 points.

Deming’s 14 points for Management:

1. Create and publicize to all employees the aims and purposes of the organization.
2. Adopt the new philosophy (of customer satisfaction, continuous improvement,
defect prevention, management-labour cooperation, etc.).
3. Stop dependence on inspection to achieve quality. (Managers must understand how
variation affects their processes and take steps to reduce the causes of variation.
Workers must take responsibility for their own work).
4. End the practice of awarding business on the basis of price tag alone. (Costs due to
inferior materials/components increase costs in the later stages of production.
Suppliers themselves are part of the whole system and hence should be treated as
long-term partners).
5. Improve constantly and forever the system of production and service .(Aim for small,
incremental, continuous improvements – not merely in the area of production but also
covering transportation, maintenance, sales, service, administration, etc. – all areas of
the organization).
6. Institute training. (Employees need the proper tools and knowledge to do a good job,
and it is management’s responsibility to provide these. Training not only improves
quality and productivity, but also enhances workers’ morale).
7. Adopt modern methods of supervision and leadership. (Managers, Supervisors should
act as coaches, facilitators and not as policemen).

8. Drive out fear. (Fear in work manifests as fear of reprisal, fear of failure, fear of
change, fear of the unknown. Fear encourages short-term, selfish thinking, not long-
term improvement for the benefit of all).
9. Break down barriers between departments and individuals. (Promote teamwork).
10. Eliminate the use of slogans and exhortations. (Workers cannot improve solely
through motivational methods when the system in which they work constrains their
performance. On the contrary, they will become frustrated, and their performance will
decrease further).
11. Eliminate work standards, numerical quotas, and MBO. (Numerical quotas reflect
short-term perspectives and do not encourage long-term improvement. Workers may
shortcut quality to reach the goal. The typical MBO system focuses on results, not
processes, and encourages short-term behavior).
12. Remove barriers to pride in workmanship. (Treating workers as commodities; giving
them monotonous jobs, inferior tools; performance appraisals, management assuming
it is smarter than workers and not using the workers’ knowledge and experience to the
fullest extent).
13. Encourage education and self-improvement for everyone.
14. Take action to achieve the transformation. (The TQ philosophy is a major cultural
change,and many firms find it difficult. Top management must take the initiative and
include everyone in it).

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Contributions of Juran to TQM.

Biographical:

 Joseph M. Juran, Ph.D. (1904- ). Born in Romania. His parents migrated to the USA.
 Worked at Western Electric Co.from 1924 to 1941. There he got exposed to the concepts
of Shewhart.

Contributions:
 In 1951, he published ‘Quality Control Handbook’ which is still a standard reference for
quality control departments in organizations.
 Traveled to Japan in 1954 to teach quality management to the Japanese at the invitation of
the Japanese Union of Scientists and Engineers (JUSE). Juran and Deming introduced the
concept of SQC to the Japanese. Helped the Japanese to improve quality to
unprecedented levels.
 He popularized the concept of Fitness for Quality – comprising of Quality of Design,
Quality of Conformance, Availability (reliability), Safety and Field Service.
 Along with Deming, he introduced the concept of ‘Quality Assurance’.
 He formulated a Quality Planning Roadmap.

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Quality Planning Roadmap.

1. Identify your customers,
2. Find out their needs,
3. Translate them into technical requirements,
4. Develop the product,
5. Develop and validate the process,
6. Translate the resulting plan to the operating personnel.
 He advocated the accounting and analysis of quality costs to focus attention on quality
problems.
 He emphasized that upper management in particular needed training and experience in
managing for quality. At the operational level, his focus was on increasing conformance
to specifications through the elimination of defects, supported by statistical analysis.
 Founded Juran Institute in 1979 to provide training, consulting services for improving
business performance and attaining quality leadership.
 His book ‘Managerial Breakthrough’ (1964) presented the concept of ‘Universal
Breakthrough Sequence (or Breakthrough improvement), which has now evolved
into Six Sigma, the basis for quality initiatives worldwide.
 Juran described quality from the customer perspective as having two aspects:
Higher quality means a greater number of features that meet customers’
needs. Freedom from trouble’ – higher quality consists of fewer defects.
 Juran is recognized as the person who added the human dimension to quality – broadening
it from its statistical origins, and thus helping develop the concept of TQM.

BARRIERS IN TQM IMPLEMENTATION

Many organizations, especially small ones with niche products, are comfortable with
their current state. They are satisfied with their current level of performance and profits.
Organizations with this culture will see little need for TQM until they begin to lose market
share.
Awareness comes about when (a) the organization loses market share or (b) TQM is
mandated by the customer, or (c) management realizes that TQM is a better way to run a
business and compete in domestic and world markets.
Once an organization embarks on TQM, the following are some of the major obstacles
encountered in implementation:
 Lack of management commitment: Management does not allocate sufficient time and
resources for TQM implementation. The purpose is not clearly, consistently
communicated to all personnel. Management’s compensation is not linked to quality
goals such as failure costs, customer complaints, and cycle time reduction.
 Inability to change organizational culture: Even individuals resist change; changing
an organization’s culture is much more difficult and may require as much as 5 years
or more. Exhortations, speeches, slogans are effective only in the short run.
 Improper planning: Absence of two-way communication of ideas during the
development of the plan and its implementation.
 Lack of continuous training and education.
 Inadequate use of empowerment and teamwork.
 Lack of employee involvement.
 Non-cooperation of first-line managers and middle management.
 Lack of clarity in vision.
 Emphasis on short-term results.

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 Setting of unmanageable, unrealistic goals.

 Bureaucratic system.
 TQM is considered as a quick-fix solution to current problems.
 Treating suppliers as adversaries to be manipulated, taken advantage of Adversarial
relationship between workers/unions and management. Motivating employees
through fear of punishment.
 Failure to continually improve. Tendency to sit back and rest on one’s laurels. Rigidly
sticking to one ‘success formula’. Lack of access to data and results. Paying
inadequate attention to internal and external customers. Ineffective measurement
techniques for key characteristics of the organization. Inability to understand the
changing needs and expectations of customers. Absence of effective feedback
mechanism.

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UNIT II TQM PRINCIPLES

LEADERSHIP
The process of influencing others towards the accomplishment of goals. He triggers tile will
to do, shows the direction and guide the group members towards the accomplishment

CHARACTERISTICS OF QUALITY LEADERS

1. Customers first

2. Value people

3. Build suppler partnership

4. Empower people

5. Strive for excellence

6. Demonstrate involvement / commitment

7. Explain & deploy policy

8. Improve communication

9. Promote teamwork

10. Benchmark continuously

11. Establish system

12. Encourage collaboration

LEADERSHIP ROLES

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ROLE OF SENIOR MANAGEMENT

2. Study and investigate TQM concepts and issues

3. Set clear quality policies and provide challenging tasks

4. Establish customer satisfaction as a long term goal

5. To become coaches and cheer leaders for encouraging and supporting the managers during
transition phase of the transformation

6. To stimulate employees to be involved

7. To attend TQM training programs

8. To up hold norms and issues

9. To create a basic of trust, respect and open communication that ensures individual
participation and continuous improvement.

10.To monitor whether quality improvement programs are conducted as planned.

THE CUSTOMERS

• The most important people in the business

• Not dependent on the organization, but the organization depends on them.
• Not an interruption to work but are the purpose of it.
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• Doing a favor when they seek business and not vice-versa.

• A part of business, not outsiders and they are life blood of the business
• People who come with their needs and jobs
• Deserve the most courteous and attentive treatment.

TYPES OF CUSTOMERS

Internal Customer: The customer inside the company are called internal customers
External Customers: An external customer is the one who used the product or service
or who purchase the products or service or who influences the sale of the product or
service.

CUSTOMER SATISFACTION

The Customer is the King - Emphasized by Today's Buyers Market. TQM's Purpose is
meeting or exceeding customer expectations, so that the customers are delighted. The customer
satisfactions must be the primary goal of any organization.

Customer satisfaction model

Teboul‘s Model of customer satisfaction as shown in figure
From the above diagram it is understood that the company should strive for increasing the
intersection portion i.e. Customer Satisfaction.

CUSTOMER COMPLAINTS (FEEDBACK)

Customer feedback must be continuously solicited and monitored to reduce the

unsatisfied customers as much as possible.
CUSTOMER FEEDBACK OR CUSTOMER COMPLAINT IS REQUIRED

1. To discover customer dissatisfaction

2. To identify customer‘s needs
3. To discover relative priorities of quality
4. To compare performance with the competition
5. To determine opportunities, for improvement

TOOLS USED FOR COLLECTING CUSTOMER COMPLAINTS

• Comment card - Low cost method, usually attached to warranty card

• Questionnaire - Popular tool, costly and time consuming - by mail or telephone
preferably multiple choice questions or a point rating system (1 to 5) or (1 to
10)
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• Customer Focus groups - Meeting by a representative of the company with the group of
customers. Imprint analysis is an emerging technique to obtain intrinsic feelings using
customer meetings, word associations, discussion, relaxation techniques etc.
• Phone - Toll free Telephone numbers
• Customer visits - Visit customer's place of business.
• Report cards - Usually, send to customer on a quarterly basis.
• The internet and computer - It includes newsgroups, electronic bulletin
board mailing lists,
• Employee feedback.
• Mass Customization - Capturing the voice of customers using data of what customer
want instead of what customer is thinking about buying and manufacturing exact
what they want.

SOLVE CUSTOMER COMPLAINTS

 Complaints can be collected from all sources (letters, phone -calls, meetings and verb
inputs)
 Develop procedures for complaint resolution, that include empowering front-line
personnel.
 Analyze complaints, but understand that complaints do not always fit into new categories
Work to identify process and material variations and then eliminate the root cause.
 When a survey response is received, a senior manager should contact the customer and
strive to resolve the concern.
 Establish customer satisfaction measures and constantly monitor them.
 Communicate complaint information, as well as the result of all investigation solution, to
all people in the organization. .
 Provide a monthly complaint report to the quality council for their evaluation and needed,
the assignment of process improvement teams.
 Identify customer's expectations beforehand rather than afterward through complaint
analysis.

CUSTOMER RETENTION.

 More powerful and effective than customer satisfaction It is the process of retaining the
existing customer

Customer care can be defined as every activity which occurs within the organization that
ensures that the customer is not only satisfied but also retained.
SIGNIFICANCE OF CUSTOMER RETENTION

 60% of organizations future revenue will come from existing customers

 2% increase in customer retention has 10% decreases in operating cost.
 96% of unhappy customers do not complain but 3 times likely to convey to other
customers about their bad experience.
 91% of unhappy customers never purchase goods and services from you.
 It costs 5 times more to attract the customer than retaining the existing customer.
 Customer retention creates customer loyalty and moves customer satisfaction to a next
level called customer delight.
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EMPLOYEE INVOLVEMENT

It is the total involvement from every person at all levels in the organization

ASPECTS OF EMPLOYEE INVOLVEMENT

1. Employee motivation
2. Employee Empowerment
3. Teams and Team work
4. Recognition and Reward Schemes
5. Performance Appraisal

EMPLOYEE MOTIVATION

It is the process of stimulating people or attempting to influence other to do your will or

accomplish desire goals through the possibility of reward
1. Improves employee involvement
2. Reduces absenteeism and increases turn over
3. Promotes job satisfaction

THEORIES OF MOTIVATION
1.Maslow’s Hierarchy of needs

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HERZBERG’S TWO FACTOR THEORY

1. Motivation Factor: People are motivated by recognition, responsibility, achievement,

advancement and the work itself. These are called as motivators
2. Dissatisfies or Hygiene Factor: Low salary, minimal fringe benefits, poor working conditions,
ill defined organizational policy, mediocre technical supervision are dissatisfies which implies
they are preventable.

EMPLOYEE WANTS
1. Good pay factor is normally in the middle of ranking.
2. Normal Wants are interesting work, appreciation, involvement job security, Good pay,
Promotion/growth, Good working conditions, Loyalty to employees, Help with personal
problems arid Tactful Discipline.

EMPLOYEE EMPOWERMENT.
It is an environment in which people have the ability, the confidence and the commitment to
take his responsibility and ownership to improve the process and initiate the necessary steps to satisfy
customer requirements within well-defined boundaries in order to achieve organizational values and
goals.
Job Enrichment: Is expanding content of the Job.
Job Empowerment: Is expanding the context of the job.

GENERAL PRINCIPLES OR CHARACTERISTICS FOR' EMPOWERING EMPLOYEES

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1. Tell people what their responsibilities are.

2. Given the authority equal to the responsibility assigned to them.
3. Set standards of excellence.
4. Give them knowledge information and feedback.
5. Trust them and treat them with dignity and respect.
,,

CONDITIONS TO CREATE THE EMPOWERED ENVIRONMENT

1. Everyone should understand the need to change

2. The system need to change to new paradigm.
3. The organization must provide information, education, and skill to its employees.

TEAMS AND TEAM WORKS

A team can be defined as a group of people working together to achieve common objectives or goals
Team work is the cumulative actions of the team during which each member of the team
subordinates his individual interest and opinions for the fulfilling of objectives of the group.

TYPES OF TEAMS

Process improvement team: Involved in improvement of sub processes or processes. Usually

has 6-10 members. Disbanded when the objective is reached. May include the local supplied and
customer depending on the location

Cross functional teams: 6-10 members temporary team. Members are Top management level
from various functional areas of management. Discuss complex problems and break down into
smaller parts to refer it to various departmental teams for further solution.

Natural work teams: Not voluntary and the total work unit is part of the team. Manager also a
part of the team and the management selects the projects to be improved. Managers must also
ensure that the entire team is comfortable with each other.

Self directed / self managed work team: Extension of natural work teams but here the group of
individuals is empowered not only to do work but manage it. No manger will present but a
coordinator (Which will be normally rotated among members) will be appointed. Additional
responsibilities of the team hiring/ dismissal, performance evaluation, customer relations,
supplier relations, recognition/rewards and training.

CHARACTERISTICS OF SUCCESSFUL TEAMS

1. Sponsor: In order to have effective liaison with quality council, there should be sponsor. The
sponsor is a person from the quality council, he is to provide support to the organization
2. Team Charter: A team charter is a document that defines the team‘s mission boundaries, the
background of the problem, the team‘s authority and duties and resources. It also identifies the
members and their assigned roles – leader, recorder, time keeper and facilitator.

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3. Team Composition: Not exceeding 10 members except natural work team and self managed teams.
4. Training: The team members should be trained in the problem solving techniques team dynamics
and communication skills
5. Ground Rules: The team should have separate rules of operation and conduct. Ground rules should
be discussed with the members, whenever needed it should be reviewed and revised
6. Clear objectives, Accountability : Periodic status report should be submitted to quality council for
review
7. Well defined decision procedure, Resources: Adequate information should be provided
8. Trust by the management, Effective problems solving: Not by hunches or quick fires
9. Open communication, Appropriate Leadership, Balanced participation and Cohesiveness

ELEMENTS OF EFFECTIVE TEAM WORK

Regular scheduling with a fixed time limit, purpose, role and responsibilities, activities,
decision, results and recognition.

TEAM MANAGEMENT WHEEL

To make a lean more effective a team management wheel has been evolved. The activities are
advising, innovating, promoting, developing, organization, producing, inspecting, maintaining
and linking. The roles of wheel are advisor, explore, organizer and controller.

STAGES OF TEAM DEVELOPMENT

 Forming stage- Initial stage with only group of individuals and no team work. Team
purpose, roles are created.
 Storming Stage -Initial agreement roles are challenged. Hostilities, emerge which may
be resolved
 Norming Stage-Formal informal relations get established.
 Performing Stage -Team operates in a successful manner with trust, openness, healthy
conflict and decisiveness among the members.
 Maintenance stage – Functioning should not deteriorate with time Evaluating Stage –
Evaluating team performance

RECOGNITION AND REWARD.

Recognition is a process whereby management shows acknowledgement (Verbal or written) of

an employee outstanding performance. Recognition is a form of employee +ve motivation. Reward is
a tangible one such as increased salaries, commission, cash bonus, gain sharing etc., to promote
desirable behavior. It can be even theatre tickets, dinner for two, a small cash awards, etc., The
employees are recognized to improve their morale, show the company's appreciation for Better
Performance, create satisfied and motivated workplace and stimulate creative efforts.

INTRINSIC VS EXTRINSIC REWARDS

INTRINSIC REWARDS EXTRINSIC REWARDS
Related to feeling of accomplishment or self Related to pay or compensation issues
worth
1. Non monetary forms of recognition to 1. Profit sharing
acknowledge achievement of quality 2. Gain sharing
improvement goals 3. Employment security
2. Celebrations to acknowledge achievement 4. Compensation time
of quality improvement goals 5. Individual based performance systems

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3. Regular expression of appreciation by 6. Quality based performance appraisals

managers and leaders to employees to
acknowledge achievement of quality
improvement goals
4. 360o performance appraisals feedback
from co-workers, subordinates or
customers is incorporated into performance
appraisal
5. Formal suggestion system available
for individuals to make quality
improvementsuggestion
6. Developmental
based performance
appraisals
7. Quality based promotion

STEVE SMITH’S TWENTY DIFFERENT WAYS TO RECOGNIZE THE EMPLOYEES

 Send thank letter whenever possible

 Develop behind the scenes award
 Create the best ideas of the year booklet
 Feature the quality team of the month and put their picture in prominent place
 Honor peers by recognizing them
 Allow people to attend meetings in your name when you are not available
 Involve teams with external customers and suppliers by visiting them
 Invite a team for coffee or lunch whenever possible
 Create a visibility will displaying posters, pictures, to thank the contributions of employee
 Credit the team to higher authorities when their ideas are accepted
 Take interest in employee‘s development
 Get the team picture in company newspaper
 Mention the ideas of others during your meetings, so that they are recognized
 Write a letter of praise to contributed team member and copy to boss
 Ask people to help you with the project which is difficult but challenging
 Send a team to special seminars, workshops to cover topics they are really interested in
 Ask your boss to send a letter of acknowledgement and thanks
 Honor outstanding contribution with awards
 Have a stock of small gifts to give to people on the spot whom you catch doing things
right
 Promote or nominate for promotion, those people who contribute most

PERFORMANCE APPRAISAL.

It is a systematic and objective assessment or evaluation of performance and

contribution of individual
Needs Identifying employees for salary revision, promotion, transfer, demotion, lay
off To determine training needs of employee To take organizational inventory of people To
know personal strength and weakness of individuals To validate the selection procedure

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APPRAISAL FORMATS

Ranking (From highest to lowest), Narrative (Telling strength and weakness),

Graphics (Graphical display of duties by rating), Forced choice (Placing each employee with
a predetermined % like Good 25%, Poor 10% etc) Performance appraisal.

It is a systematic and objective assessment or evaluation of performance and

contribution of individual

Needs Identifying employees for salary revision, promotion, transfer, demotion, lay
off To determine training needs of employee To take organizational inventory of people To
know personal strength and weakness of individuals To validate the selection procedure

APPRAISAL PROCESS

BENEFITS OF PERFORMANCE APPRAISAL

1. Provides a feedback to identify employees for salary revision, transfer, lay-off

2. Helps in determining training needs of employee
3. Provides organization inventory of people

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4. Helps to evaluate personal strength and weakness of individuals

5. To validate the selection procedure.
6. Provide the basis for promotion, demotion etc
7. May provide some information on external factors like family circumstances, health,
financial or personal matters that may be affecting the performance

CONTINUOUS PROCESS IMPROVEMENT (CPI)

TQM has been defined as a philosophy based on quest for progress and continual
improvement in the areas of cost, reliability, quality, innovation, efficiency and
business effectiveness
 It is a continuous learning process which never stops and is cyclic and iterative
 To do CPI, we have different approaches such as Juran Trilogy, PDSA cycle, Kaizen
and 5S concept
Contributions of Juran to TQM.
Biographical:

 Joseph M. Juran, Ph.D. (1904- ). Born in Romania. His parents migrated to the USA.
 Worked at Western Electric Co.from 1924 to 1941. There he got exposed to the concepts
of Shewhart.

Contributions:
 In 1951, he published ‘Quality Control Handbook’ which is still a standard reference for
quality control departments in organizations.
 Traveled to Japan in 1954 to teach quality management to the Japanese at the invitation of
the Japanese Union of Scientists and Engineers (JUSE). Juran and Deming introduced the
concept of SQC to the Japanese. Helped the Japanese to improve quality to
unprecedented levels.
 He popularized the concept of Fitness for Quality – comprising of Quality of Design,
Quality of Conformance, Availability (reliability), Safety and Field Service.
 Along with Deming, he introduced the concept of ‘Quality Assurance’.
 He formulated a Quality Planning Roadmap.

INPUT / OUTPUT PROCESS MODEL

The process refers to business and production activities of an organization. Example

Purchasing, Engineering, Marketing and Accounting

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PDSA CYCLE

It is also called as Deming Cycle or Deming Wheel. Developed by Walter A. Shewart and
popularized by Edward Deming

PLAN
• Identify the problem, plan and opportunities
• Observe and analyze
• Isolate the real causes
• Determine corrective actions

DO
• Prepare
• Apply
• Check application

STUDY / CHECK
• Check results
• Compare with goals

ACT
• Standardize and consolidate
• Prepare next stage of planning

BENEFITS OF PDSA CYCLE

• Daily routine management for the individual and or the team
• Problem solving process
• Project management
• Continuous development
• Vendor development
• Human resource management
• New product development
• Process trials

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5S HOUSE KEEPING

This is a house keeping technique used to establish and maintain a productive and quality
environment in an organization. This method is invented in Japan which will give safer, more
efficient and more productive operation results in boosting of morale of workers, job involvement
and satisfaction and ownership of their responsibilities.

JAPANESE TERM MEANING

Cleaning – Throw away all rubbish

SEIRI unrelated materials in the work place

Arranging – Set everything in proper place

SEITON for quick retrieval and storage
Sweeping – Clean the work place, every
SEISO thing with out fail

Maintaining Cleanliness – Standardizing

SEIKETSU the way of maintaining cleanliness

SHISUKE Self Discipline – Practice ‗5S‘ daily. Make

it a way or life. This also means commitment

RELATIONSHIP BETWEEN VARIOUS 5S

OBJECTIVES OF 5S

 Create a neat and clean work place

 Create systemize day to day working
 Improve work efficiency
 Standardize work practice
 Improve work discipline
 Improve the quality of work and products

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FACTORS IN IMPLEMENTING 5S

Participation by all - Should be understood and practiced by all employees

Top management commitment – CEO and Senior management team need personally
commitment practice and supervise the program
Should be self sustaining – Banners, slogan posters and new tutors should be fully utilized to
draw attention of every one
Review the program – Every month group of people from different areas of responsibilities plan
and evaluate each zone

BENEFITS IN IMPLEMENTING 5S

• Work place becomes proud place to work

• Results in good image and- generates business
• Operations become easier and safer in work place
• Disciplined people
• Improve productivity' and morality
• Better quality awareness
• More usable space
• Less Material handling time
• Less production cost
• Preventive maintenance
• High employee involvement
• Less accidents
• More time to improvement.

SUPPLIER PARTNERSHIP

A commitment to continuous quality improvement cannot be translated into reality without

treating supplier as partner

PRINCIPLES OF CUSTOMER / SUPPLIER RELATION

• Both the customer and the supplier are fully responsible for the control quality

• Both the customer and the supplier should be independent of each other and respect each
other‘s independence

• The customer is responsible for providing the supplier with clear and sufficient
requirements so that the supplier can know precisely what to produce

• Both the customer and the supplier should enter into an non adversarial contract with
respect to quality, quality, price, delivery method and terms of payments

• The supplier is responsible for providing the quality that will satisfy the customer and
submitting necessary data upon the customer‘s request

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• Both the customer and the supplier should decide the methods to evaluate the quality of
the product or service to the satisfaction of both parties

• Both the customer and the supplier should establish in the contract the method by which
they can reach an amicable settlement of any disputes that may arise

• Both the customer and the supplier should continually exchange information, sometimes
using multifunctional teams, in order to improve the product or service quality
• Both the customer and the supplier should perform business activities such as
procurement, production and inventory planning, clerical work and system so that an
amicable and satisfactory relationship is maintained
• When dealing with business transactions both the customer and the supplier should
always have the best interest of the end user in mind

SUPPLIER PARTNERING

It is defined as a continuing relationship, between a buying firm and supplying firm,

involving a commitment over an extended time period, an exchange of information, and
acknowledgement of the risks end rewards of the relationship.

BENEFITS OF SUPPLIER PARTNERING

Improved Quality Reduced cost Increased Productivity Increased efficiency Increased market
share Increased opportunity for innovation Continuous improvement of products/services. .

JAPANES REVIEW OF PARTNERING

The Japanese partnering concept is KELRESTU – developing long term relationships with a
few key suppliers rather than having short term relationship with many suppliers.

Key elements to Partnering Long term Commitment Trust Shared vision - To satisfy the end
users is the common goal of both supplier and customer.

SUPPLIER SOURCING
Sole sourcing - only one supplier for the entire organization. This may be forced. to happen
because of patent, technical specification, raw material location, monopolistic supplier
Multiple sourcing - For a single item having two or more supplier, resulting in better quality,
better service at lower cost

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UNIT III TQM TOOLS & TECHNIQUES I

THE SEVEN TRADITIONAL TOOLS OF QUALITY

I - Pareto chart
II - Flowchart
III - Cause-and-Effect Diagrams
IV - Check Sheets
V- Histograms
VI - Scatter Diagrams
VII - Control Charts

Pareto chart:

Italian economist Vilfredo Pareto Shows on a bar graph which factors are more significant. This
method helps to find the vital few contributing maximum impact.

Purpose: The purpose of the Pareto chart is to prioritize problems No company has enough resources
to tackle every problem, so they must prioritize.

Pareto Principle: The Pareto concept was developed by the describing the frequency distribution of
any given characteristic of a population. Also called the 20-80 rule, he determined that a small
percentage of any given group (20%) account for a high amount of a certain characteristic (80%).

Conclusion: The most important thing in improving quality is to start somewhere, doing something.
As you begin using the Pareto chart to decide where your problems are, you will discover many things
about your processes and will come because you will know where to improve.

Flowchart:

A technique that separates data gathered from a variety of sources so that patterns can be seen (some
lists replace "stratification" with or "run chart").

Purpose: Flow Charts provide a visual illustration of the sequence of operations required to complete
a task.

A picture of the steps the process undergoes to complete it's task. Every process will require input(s)
to complete it's task, and will provide output(s) when the task is completed. Flow charts can be drawn
in many styles. Flow charts can be used to describe a single process, parts of a process, or a set of
processes. There is no right or wrong way to draw a flow chart. The true test of a flow chart is how
well those who create and use it can understand it.

Input Process Output

Cause-and-Effect Diagrams

1943 by Mr. Kaoru Ishikawa at the University of Tokyo

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Purpose: One important part of process improvement is continuously striving to obtain more
information about the process and it's output. Cause-and-effect diagrams allow us to do not just that,
but also can lead us to the root cause, or causes, of problems

Constructing the Cause-and-Effect Diagram:

Step 1: Select the team members and a leader. Team members knowledgeable about the quality.
Team members focus on the problem under investigation.

Step 2: Write the problem statement on the right hand side of the page, and draw a box around it
with an arrow running to it. This quality concern is now the effect.

Step 3: Brain-storming. The team members generate ideas as to what is causing the effect. Step 4:
This step could be combined with step 3. Identify, for each main cause, its related sub-causes that
might affect our quality concern or problem (our Effect). Always check to see if all the factors
contributing to the problem have been identified. Start by asking why the problem exists.

Step 5: Focus on one or two causes for which an improvement action(s) can be developed using
other quality tools such as Pareto charts, check sheets, and other gathering and analysis tools.

Conclusion: Improvement requires knowledge. The more information we have about our
processes the better we are at improving them. Cause-and-effect diagrams are one quality tool
that is simple yet very powerful in helping us better understand our processes.

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Check Sheets

Purpose: Check sheets allow the user to collect data from a process in an easy, systematic, and
organized manner.

Data Collection: Before we can talk about check sheets we need to understand what we mean by
data collection. This collected data needs to be accurate and relevant to the quality problem. The
first is to establish a purpose for collecting this data. Second, we need to define the type of data
that is going to be collected. Measurable data such as length, size, weight, time,...etc., and
Countable data such as the number of defects. The third step is to determine who is going to
collect that data and when it should be collected.

Histograms

Purpose: To determine the spread or variation of a set of data points in a graphical form. It is
always a desire to produce things that are equal to their design values.

Histograms: A histogram is a tool for summarizing, analyzing, and displaying data. It provides
the user with a graphical representation of the amount of variation found in a set of data.

Constructing a Histogram: The following are the steps followed in the construction of a
histogram:

Data collection: To ensure good results, a minimum of 50 data points, or samples, need to be
collected

Calculate the range of the sample data: The range is the difference between the largest and
smallest data points. Range = Largest point - smallest point.

Calculate the size of the class interval. The class interval is the width of each class on the X axis.
It is calculated by the following formula:

Class interval = Range / Number of classes.

Calculate the number of data points (frequency) that are in each class. A tally sheet is usually
used to find the frequency of data points in each interval.

Conclusion: Histogram is simple tools that allow the user to identify and interpret the variation
found in a set of data points. It is important to remember that histograms do not give solutions to
problems.

Scatter Diagrams

Purpose: To identify correlations that might exist between a quality characteristic and a factor
that might be driving it.

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Scatter Diagrams: A scatter diagram is a nonmathematical or graphical approach for identifying

relationships between a performance measure and factors that might be driving it. This graphical
approach is quick, easy to communicate to others, and generally easy to interpret.

Interpreting the Results: Once all the data points have been plotted onto the scatter diagram,
you are ready to determine whether their exists a relation between the two selected items or not.
When a strong relationship is present, the change in one item will automatically cause a change in
the other. If no relationship can be detected, the change in one item will not effect the other item.
Their are three basic types of relationships that can be detected to on a scatter diagram: 1. Positive
relationship 2. Negative relationship 3. No relationship

Conclusion: Scatter diagrams allow the user to graphically identify correlations that could exist
between a quality characteristic and a factor that might be driving it. It is a quality tool that is
simple, easy to communicate to others, and generally easy to interpret

Control Charts

Purpose: Process is in control and to monitor process variation on a continuous basis. Identifying
the tolerance level in the variations. Control charts is one SPC tool that enables us to monitor and
control process variation. Types of variation Common and Special Cause Variation

Control charts: Developed in the mid 1920's by Walter Shewhart of Bell labs. There are two
basic types of control charts, the average and range control charts. The first deals with how close
the process is to the nominal design value, while the range chart indicates the amount of spread or
variability around the nominal design value. A control chart has basically three line: the upper
control limit UCL, the center line CL, and the lower control limit LCL. A minimum of 25 points
is required for a control chart to be accurate.

NEW MANAGEMENT TOOLS

Seven New Management and Planning Tools In 1976, the Union of Japanese Scientists and Engineers
(JUSE) saw the need for tools to promote innovation, communicate information and successfully plan
major projects. A team researched and developed the seven new quality control tools, often called the
seven management and planning (MP) tools, or simply the seven management tools. Not all the tools
were new, but their collection and promotion were. The seven MP tools, listed in an order that moves
from abstract analysis to detailed planning, are:

1. Affinity diagram: organizes a large number of ideas into their natural relationships.

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2. InterRelations diagram:

Shows cause-and-effect relationships and helps you analyze the natural links between different
aspects of a complex situation.

3. Tree diagram: breaks down broad categories into finer and finer levels of detail, helping you move
your thinking step by step from generalities to specifics.

4. Matrix diagram: shows the relationship between two, three or four groups of information and can
give information about the relationship, such as its strength, the roles played by various individuals, or
measurements.

5. Matrix data analysis: a complex mathematical technique for analyzing matrices, often replaced in
this list by the similar prioritization matrix. One of the most rigorous, careful and time-consuming of
decision-making tools, a prioritization matrix is an L-shaped matrix that uses pair wise comparisons of
a list of options to a set of criteria in order to choose the best option(s).

6. Arrow diagram: shows the required order of tasks in a project or process, the best schedule for the
entire project, and potential scheduling and resource problems and their solutions

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7. Processdecision program chart (PDPC): systematically identifies what might go wrong in a

plan under development.

SIX SIGMA

Six Sigma has evolved over the last two decades and so has its definition. Six Sigma has
literal, conceptual, and practical definitions. Features that set Six Sigma apart from previous
quality improvement initiatives include – Clear focus on achieving measurable and quantifiable
financial returns from any project.

etc. to lead and implement the Six Sigma approach.

Assumptions and guesswork.

At Motorola University, we think about Six Sigma at three different levels:
As a metric

As a methodology
As a management system
Essentially, Six Sigma is all three at the same time.

Six Sigma as a Metric

The term "Sigma" is often used as a scale for levels of "goodness" or quality. Using this scale,
"Six Sigma" equates to 3.4 Defects Per Million Opportunities (DPMO). Six Sigma started as
a defect reduction effort in manufacturing and then applied to other business processes for the
same purpose. Taking the 1.5 sigma shift into account, short-term sigma levels correspond to
the following long-term DPMO values (one-sided):

One Sigma = 690,000 DPMO => efficiency 31% Two Sigma = 308,000 DPMO =>
efficiency 69.2% Three Sigma = 66,800 DPMO => efficiency 93.32% Four Sigma =
6,210 DPMO => efficiency 99.379% Five Sigma = 230 DPMO => efficiency
99.977%

Six Sigma = 3.4 DPMO => efficiency 99.9997%

Six Sigma as a Methodology

As Six Sigma has evolved, there has been less emphasis on the literal definition of 3.4
DPMO, or counting defects in products and processes. Six Sigma is a business improvement
methodology that focuses an organization on:

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Understanding and managing customer requirements

Aligning key business processes to achieve those requirements

Utilizing rigorous data analysis to minimize variation in those

processes Driving rapid and sustainable improvement to business

processes

At the heart of the methodology is the DMAIC model for process improvement. DMAIC is
commonly used by Six Sigma project teams and is an acronym for:

DMAIC - The basic methodology consists of the following five steps:

Define process improvement goals that are consistent with customer demands and the
enterprise strategy.

Measure key aspects of the current process and collect relevant data.

Analyze the data to verify cause-and-effect relationships. Determine what the

relationships are, and attempt to ensure that all factors have been considered.

Improve or optimize the process based upon data analysis using techniques like
Design of Experiments.

Control to ensure that any deviations from target are corrected before they result in
defects. Set up pilot runs to establish process capability, move on to production, set up
control mechanisms and continuously monitor the process.

DMADV
The basic methodology consists of the following five steps:

Define design goals that are consistent with customer demands and the enterprise
strategy.

Measure and identify CTQs (characteristics that are Critical To Quality), product
capabilities, production process capability, and risks.

Analyze to develop and design alternatives, create a high-level design and evaluate
design capability to select the best design.

Design details, optimize the design, and plan for design verification. This phase may
require simulations.

Verify the design, set up pilot runs, implement the production process and hand it
over to the process owners.

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Implementation roles –

One of the key innovations of Six Sigma is the professionalizing of quality management
functions. Prior to Six Sigma, quality management in practice was largely relegated to the
production floor and to statisticians in a separate quality

department. Six Sigma borrows martial arts ranking terminology to define a hierarchy (and
career path) that cuts across all business functions and a promotion path straight into the
executive suite.
UNIT-IV TQM TOOLS

BENCHMARKING

"Benchmarking: A continuous, systematic process of evaluating and comparing the

capability of one organization with others normally recognized as industry leaders, for insights
for optimizing the organizations processes." Benchmarking is the process of comparing the cost,
time or quality of what one organization does against what another organization does. The result
is often a business case for making changes in order to make improvements. The systematic
process of comparing an organization‗s products, services and practices against those of
competitor organizations or other industry leaders to determine what it is they do that allows them
to achieve high levels of performance. (Society for Human Resources Management)

Advantages of benchmarking

Benchmarking is a powerful management tool because it overcomes "paradigm

blindness." Benchmarking opens organizations to new methods, ideas and tools to improve their
effectiveness. It helps crack through resistance to change by demonstrating other methods.
Allows employees to visualise the improvement which can be a strong motivator for change
Helps to identify weak areas and indicates what needs to be done to improve.

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THE BENCHMARKING PROCESS

The formal 10-step benchmarking process is shown in outline below.

1. PLANNING.
The essential steps are those of any plan development: what, who and how.

Every function of an organization has or delivers a product or output.

Benchmarking is Appropriate for any output of a process or function, whether it‗s a physical
good, an order, a Shipment, an invoice, a service or a report.

To whom or what will we compare?

Business-to-business, direct competitors are certainly prime candidates to benchmark.
But they are not the only targets. Benchmarking must be conducted against the best
companies and business functions regardless of where they exist. How will the data be
collected?

There is no one way to conduct benchmarking investigations. There is an infinite

variety of ways to obtain required data – and most of the data you will need are readily and
publicly available. Recognize that benchmarking is a process not only of deriving
quantifiable goals and targets, but more importantly, it is the process of investigating and
documenting the best industry practices, which can help you achieve goals and targets.

2. ANALYSIS.

The analysis phase must involve a careful understanding of your current process and
practices, as well as those of the organizations being benchmarked. What is desired is an
understanding of internal performance on which to assess strengths and weaknesses.

3. INTEGRATION.

Integration is the process of using benchmark findings to set operational targets for
change. It involves careful planning to incorporate new practices in the operation and to
ensure benchmark findings are incorporated in all formal planning processes. Steps include:

Gain operational and management acceptance of benchmark findings. Clearly and

convincingly demonstrate findings as correct and based on substantive data. Develop action
plans.

Communicate findings to all organizational levels to obtain support, commitment and

ownership.

4. ACTION.
Convert benchmark findings, and operational principles based on them, to specific
actions to be taken. Put in place a periodic measurement and assessment of achievement. Use
the creative talents of the people who actually perform work tasks to determine how the
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findings can be incorporated into the work processes. Any plan for change also should
contain milestones for updating the benchmark findings, and an ongoing reporting
mechanism. Progress toward benchmark findings must be reported to all employees. 5.
Maturity. Maturity will be reached when best industry practices are incorporated in all
business processes, thus ensuring superiority. Tests for superiority:

If the now-changed process were to be made available to others, would a knowledgeable

businessperson prefer it?

Do other organizations benchmark your internal operations?

Maturity also is achieved when benchmarking becomes an ongoing, essential and

self-initiated facet of the management process. Benchmarking becomes institutionalized and
is done at all appropriate levels of the organization, not by specialists.

Types of Benchmarking.
Process benchmarking - the initiating firm focuses its observation and investigation of
business processes with a goal of identifying and observing the best practices from
one or more benchmark firms. Activity analysis will be required where the objective
is to benchmark cost and efficiency; increasingly applied to back-office processes
where outsourcing may be a consideration.

Financial benchmarking - performing a financial analysis and comparing the results in

an effort to assess your overall competitiveness.

Performance benchmarking - allows the initiator firm to assess their competitive

position by comparing products and services with those of target firms.

Product benchmarking - the process of designing new products or upgrades to current

ones. This process can sometimes involve reverse engineering which is taking apart
competitors products to find strengths and weaknesses.

Strategic benchmarking - involves observing how others compete. This type is usually
not industry specific meaning it is best to look at other industries.

Functional benchmarking - a company will focus its benchmarking on a single

function in order to improve the operation of that particular function. Complex
functions such as Human Resources, Finance and Accounting and Information and
Communication Technology are unlikely to be directly comparable in cost and
efficiency terms and may need to be disaggregated into processes to make valid
comparison
Implementation in manufacturing
Poka-yoke can be implemented at any step of a manufacturing process where something
can go wrong or an error can be made. For example, a jig that holds pieces for processing might

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be modified to only allow pieces to be held in the correct orientation, or a digital counter might
track

Yhe number of spot welds on each piece to ensure that the worker executes the correct number of
welds.

Shigeo Shingo recognized three types of poka-yoke for detecting and preventing errors in a mass
production system:

1. The contact method identifies product defects by testing the product's shape, size, color, or
other physical attributes.

2. The fixed-value (or constant number) method alerts the operator if a certain number of
movements are not made.

3. The motion-step (or sequence) method determines whether the prescribed steps of the process
have been followed.

Either the operator is alerted when a mistake is about to be made, or the poka-yoke device
actually prevents the mistake from being made. In Shingo's lexicon, the former implementation
would be called a warning poka-yoke, while the latter would be referred to as a control poka-
yoke.

FMEA

Failure modes and effects analysis (FMEA) is a procedure for analysis of potential
failure modes within a system for the classification by severity or determination of the failures'
effect upon the system. It is widely used in the manufacturing industries in various phases of the
product life cycle and is now increasingly finding use in the service industry as well. Failure
causes are any errors or defects in process, design, or item especially ones that affect the
customer, and can be potential or actual. Effects analysis refers to studying the consequences of
those failures.

Step 1: Severity

Determine all failure modes based on the functional requirements and their effects.
Examples of failure modes are: Electrical short-circuiting, corrosion or deformation. It is
important to note that a failure mode in one component can lead to a failure mode in another
component. Therefore each failure mode should be listed in technical terms and for function.
Hereafter the ultimate effect of each failure mode needs to be considered.

A failure effect is defined as the result of a failure mode on the function of the system as
perceived by the user. In this way it is convenient to write these effects down in terms of what the
user might see or experience. Examples of failure effects are: degraded performance, noise or
even injury to a user.

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Each effect is given a severity number(S) from 1(no danger) to 10(important). These
numbers help an engineer to prioritize. If the severity of an effect has a number 9 or 10, actions
are considered to change the design by eliminating the failure mode, if possible, or protecting the
user from the effect. A severity rating of 9 or 10 is generally reserved for those effects which
would cause injury to a user or otherwise result in litigation.

Step 2: Occurrence

In this step it is necessary to look at the cause of a failure and how many times it occurs.
This can be done by looking at similar products or processes and the failures that have been
documented for them. A failure cause is looked upon as a design weakness. All the potential
causes for a failure mode should be identified and documented. Again this should be in technical
terms. Examples of causes are: erroneous algorithms, excessive voltage or improper operating
conditions.

A failure mode is given a probability number (O), again 1-10. Actions need to be
determined if the occurrence is high (meaning >4 for non safety failure modes and >1 when the
severity-number from step 1 is 9 or 10). This step is called the detailed development section of
the FMEA process.

Step 3: Detection

When appropriate actions are determined, it is necessary to test their efficiency. Also
design verification is needed. The proper inspection methods need to be chosen. First, an
engineer should look at the current controls of the system, that prevent failure modes from
occurring or which detect the failure before it reaches the customer.

Hereafter one should identify testing, analysis, monitoring and other techniques that can
be or have been used on similar systems to detect failures. From these controls an engineer can
learn how likely it is for a failure to be identified or detected. Each combination from the
previous 2 steps, receives a detection number(D). This number represents the ability of planned
tests and inspections at removing defects or detecting failure modes. After these 3 basic steps,
Risk Priority Numbers (RPN) is calculated.

Risk Priority Numbers RPN does not play an important part in the choice of an action
against failure modes. They are more threshold values in the evaluation of these actions. After
ranking the severity, occurrence and detectability the RPN can be easily calculated by
multiplying these 3 numbers: RPN = S x O x D .This has to be done for the entire process and/or
design. Once this is done it is easy to determine the areas of greatest concern. The failure modes
that have the highest RPN should be given the highest priority for corrective action. This means it
is not always the failure modes with the highest severity numbers that should be treated first.
There could be less severe failures, but which occur more often and are less detectable.

Uses of FMEA
Development of system requirements that minimize the likelihood of failures.
Development of methods to design and test systems to ensure that the failures have been

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eliminated. Evaluation of the requirements of the customer to ensure that those do not give
rise to potential failures. Identification of certain design characteristics that contribute to failures,
and minimize or eliminate those effects. Tracking and managing potential risks in the design.
This helps avoid the same failures in future projects. Ensuring that any failure that could occur
will not injure the customer or seriously impact a system.

Advantages

 Improve the quality, reliability and safety of a product/process Improve company image
and competitiveness

 Increase user satisfaction Reduce system development timing and cost Collect information
to reduce future failures

 capture engineering knowledge Reduce the potential for warranty concerns

 Early identification and elimination of potential failure modes Emphasis problem

prevention Minimize late changes and associated cost Catalyst for teamwork and idea
exchange between functions

Disadvantages

If used as a top-down tool,

FMEA may only identify major failure modes in a system.

Fault tree analysis (FTA) is better suited for "top-down" analysis. When used as a "bottom-
up" tool FMEA can augment or complement FTA and identify many more causes and failure
modes resulting in top-level symptoms.

It is not able to discover complex failure modes involving multiple failures within a
subsystem, or to report expected failure intervals of particular failure modes up to the upper level
subsystem or system. Additionally, the multiplication of the severity, occurrence and detection
rankings may result in rank reversals,where a less serious failure mode receives a higher RPN
than a more serious failure mode. The reason for this is that the rankings are ordinal scale
numbers, and multiplication is not a valid operation on them. The ordinal rankings only say that
one ranking is better or worse than another, but not by how much. For instance, a ranking of "2"
may not be twice as bad as a ranking of "1," or an "8" may not be twice as bad as a "4," but
multiplication treats them as though they are.

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BENCHMARKING
Benchmarking is a systematic method by which organizations can measure themselves against
the best industry practices.
 Benchmarking is a systematic search for the best practices, innovative ideas, and highly
effective operating procedures.

BENCHMARKING CONCEPT
What is our performance level ? What are others performance levels ?
How do we do it ? How did they get there ?

Creative Adaptation

REASONS TO BENCHMARK :
Breakthrough Performance
 It is a tool to achieve business and competitive objectives
 It can inspire managers (and Organizations) to compete
 It is time and cost effective
 It constantly scans the external environment to improve the process
 Potential and useful technological breakthroughs can be located and adopted early

PROCESS OF BENCHMARKING

The following six steps contain the core techniques of Benchmarking

1. Decide what to benchmark
 Benchmarking can be applied to any business or production process
 The strategy is usually expressed in terms of mission and vision statements
 Best to begin with the mission and critical factors
 Choosing the scope of the Benchmarking study
 Pareto analysis – what process to investigate
 Cause and Effect diagram – for tracing outputs back

2. Understand current performance

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 Understand and document the current process

 Those working in the process are the most capable of identifying and correcting
problems
 While documenting, it is important to quantify
 Care should be taken during accounting information
3. Plan
 A benchmarking team should be chosen
 Organizations to serve as the benchmark need to be identified
 Time frame should be agreed upon for each of the benchmarking
tasks There are three types of benchmarking
a. Internal
b. Competitive
c. Process
4. Study Others
Benchmarking studies look for two types of information
 How best the processes are practiced
 Measurable results of these practices
Three techniques for conducting the research
are
 Questionnaires
 Site visits
 Focus groups
5. Learn from the data
Answering a series of questions like
 Is there a gap between the organization’s performance and the performance of the best-in-
class organizations?
 What is the gap? How much is it?
 Why is there a gap? What does the best-in-class do differently that is better?
 If best-in-class practices were adopted, what would be the resulting
improvement? Benchmarking studies can reveal three different outcomes
 Negative gap
 Parity
 Positive gap

6. Using the findings

The objective is to close the gap. For this
 Findings must be communicated to the people within the organization
 Action plans must be developed to implement new
processes Groups that must agree on the change
 Process owners
 Upper management
Steps for the development and execution of action plans are
1. Specify tasks
2. Sequence tasks
3. Determine resources needs
4. Establish task schedule

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5. Assign responsibility for each task

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6. Describe expected results

7. Specify methods for monitoring results

PITFALLS AND CRITICISMS OF BENCHMARKING :

 Idea of copying others
 It is not a cure or a business philosophy
 Some process have to be benchmarked repeatedly
 It is not a substitute for innovation

QUALITY FUNCTION DEPLOYMENT

 Quality Function Deployment is a planning tool used to fulfill customer expectations.
 Quality Function Deployment focuses on customer expectations or requirements, often
referred to as voice of the customer.
QFD TEAM :
There are two types of teams namely
1. Team for designing a new product
2. Team for improving an existing product
BENEFITS OF QFD :
1. Improves Customer satisfaction
 Creates focus on customer requirements
 Uses competitive information effectively
 Prioritizes resources
 Identifies items that can be acted upon

2. Reduces Implementation Time

 Decreases midstream design changes
 Limits post introduction problems
 Avoids future development
redundancies Promotes Team Work
 Based on consensus
 Creates communication
 Identifies actions

3. Provides Documentation
 Documents rationale for design
 Adds structure to the information
 Adapts to changes (a living document)

HOUSE OF QUALITY :

Interrelationship Between
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Technical Descriptors (Voice of the organization)

Relationship between

Customer Requirements
(Voice of the customer)
Customer Requirements

Requirements and Descriptors

Prioritized
i
Priortized Technical Descriptors

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THE STEPS IN BUILDING A HOUSE OF QUALITY ARE :

1. List Customer Requirements (WHAT’s)

2. List Technical Descriptors (HOW’s)

3. Develop a Relationship Matrix Between WHAT’s and HOW’s

4. Develop an Inter-relationship Matrix between HOW’s

5. Competitive Assessments
a. Customer Competitive Assessments
b. Technical Competitive Assessments

6. Develop Prioritized Customer Requirements

7. Develop Prioritized Technical Descriptors

TAGUCHI’S QUALITY LOSS FUNCTION

INTRODUCTION
 Taguchi Methods is a statistical methods developed largely by GENICHI TAGUCHI to
improve quality of manufactured goods.
 The philosophy of off-line quality control.
 Innovations in the design of experiments.

Taguchi Loss Function Definition

Taguchi defines Quality as “the loss imparted by the product to society from the time the
product is shipped.”
LOSS = Cost to operate,
Failure to function, maintenance and repair cost, customer satisfaction, poor design.
Product to be produced “being within specification”

Taguchi’s Vs Traditional Approach

Taguchi’s Quadratic Quality Loss Function
Quality Loss Occurs when a product’s deviates from target or nominal value.
Deviation Grows, then Loss increases.
Taguchi’s U-shaped loss Function Curve.

Formula to find Taguchi’s Loss Fn

Taguchi uses Quadratic Equation to determine loss Curve

L (x) = k (x-N)²
Where L (x) = Loss Function,
k = C/d² = Constant of
proportionality, where C – Loss associated
with sp limit

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d - Deviation of specification from target value

x = Quality Features of selected
product, N = Nominal Value of the
product and (x-N) = Tolerance

Problem
A part dimension on a power tool is specified as 32.25±0.25.Company records show±0.25
exceeded & 75% of the returned fo replacement. Cost of replacement is Rs.12,500.Determine k
& QLF.

Solution : Expected Cost of

repair C = 0.75(12500) = Rs
9,375
k = C/d²= 9375/(90.25)² = Rs 1,50,000
QLF =L (x) 1,50,00(x-N)

Taguchi’s Quality Loss Function concept combines cost, target and variation in one metric with
specifications being of secondary importance.
Taguchi has defined quality as the loss imparted to society from the time a product is shipped.
Societal losses include failure to meet customer requirements, failure to meet ideal performance
and harmful side effects.

 CUSTOMERS PERCEIVE QUALITY AS MEETING THE TARGET RATHER THAN

JUST MEETING THE SPECIFICATIONS.

There are three common quality loss functions

1. Nominal - the - best.

2. Smaller - the - better.

3. Larger - the - better.

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4. NOMINAL – THE – BEST : Although Taguchi developed so many loss functions,

many situations are approximated by the quadratic function which is called the Nominal
– the – best type.

LSL USL
Loss

Y
0
τ-∆ Performance τ+∆
Chaτracteristic

Quadratic Loss Function

The quadratic function is shown in figure. In this situation, the loss occurs as soon as the
performance characteristic, y, departs from the target τ.
At τ, the loss is Rs. 0.
At LSL (or) USL, the loss is Rs. A.
The quadratic loss function is described by the equation L = k (y - τ) 2.
Where,
L = cost incurred as quality deviates from the target.
y = Performance characteristic
τ = target
k = Quality loss coefficient.
The loss coefficient is determined by setting ∆ = (y – τ), the deviation from the target. When ∆ is
the USL (or) LSL, the loss to the customer of repairing (or) discarding the product is Rs. A.

Thus,
K = A / (y – τ)2 = A / ∆2 .
SMALLER – THE – BETTER :
The following figure shows the smaller – the – better concepts.
The target value for smaller – the – better is 0. There are no negative values for the performance
characteristic.
The radiation leakage from a microwave appliance, the response time for a computer, pollution
from an automobile, out of round for a hole etc. are the performance characteristics for this
concept.
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LARGER – THE – BETTER :

The following figure shows the concept of the Larger – the – better.

A
Loss

y
0 y
Performance Characteristic

Smaller-the-better

TOTAL PRODUCTIVE MAINTENANCE (TPM)

(6) Define TPM(Total Productive Maintenance). Explain in detail TPM steps.

Total Productive Maintenance (TPM) is defined as keeping the running plant and equipment at its
highest productive level with the co-operation of all areas of the organization.
Predictive and Preventive maintenance are essential to building a foundation for a
successful TPM environment. Predictive Maintenance is the process of using data and statistical

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tools to determine when a piece of equipment will fail. Preventive Maintenance is the process of
periodically performing activities such as lubrication on the equipment to keep it running.

OBJECTIVES OF TPM :
1. To maintain and improve equipment capacity.
2. To maintain equipment for life.
3. To use support from all areas of the operation.
4. To encourage input from all employees.
5. To use teams for continuous improvement.

TPM PHILOSOPHY – CONCEPT OF TPM :

Total Productive Maintenance (TPM) is an extension of the Total Quality Management (TQM)
philosophy to the maintenance function.
TPM has the following steps:
1. Management should learn the new philosophy of TPM.
2. Management should promote the new philosophy of TPM.
3. Training should be funded and developed for everyone in the organization.
4. Areas of needed improvement should be identified.
Loss measurements to identify improvement needs are
 Down time losses
 Reduced speed losses
 Poor quality losses

5. Performance goals should be formulated.

6. An implementation plan should be developed.
7. Autonomous worth groups should be established.

FAILURE MODE AND EFFECTS ANALYSIS (FMEA)

(7) What is FMEA?
FMEA is an analytical technique that combines the technology and experience of people in
identifying foreseeable failure modes of a product or process and planning for its elimination.
FMEA is a “before-the-event” action requiring a team effort to easily and inexpensively alleviate
changes in design and production.
It is a group of activities comprising the following :
1. Recognize the potential failure of a product or process.
2. Identify actions that eliminate / reduce the potential failure.
3. Document the process.
Two important types of FMEA
are
 Design FMEA
 Process FMEA

(8) What are the types of FMEA?

There are several types of FMEA : design FMEA, process FMEA, equipment FMEA,
maintenance FMEA, concept FMEA, service FMEA, system FMEA, environmental FMEA, and
others.

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(9) What Is A Failure Mode?

A Failure Mode is:
⚫ The way in which the component, subassembly, product, input, or process could
fail to perform its intended function
⚫ Failure modes may be the result of upstream operations or may cause
downstream operations to fail
⚫ Things that could go wrong
Why
⚫ Methodology that facilitates process improvement
⚫ Identifies and eliminates concerns early in the development of a process or design
⚫ Improve internal and external customer satisfaction
⚫ Focuses on prevention
⚫ FMEA may be a customer requirement
⚫ FMEA may be required by an applicable
Quality System Standard

INTENT OF FMEA :
 Continually measuring the reliability of a machine, product or process.
 To detect the potential product - related failure mode.
 FMEA evaluation to be conducted immediately following the design phase.

BENEFITS OF FMEA:
 Having a systematic review of components failure modes to ensure that any failure
produces minimal damage.
 Determining the effects of any failure on other items.
 Providing input data for exchange studies.
 Determining how the high-failure rate components can be adapted to high-reliability
components.
 Eliminating / minimizing the adverse effects that failures could generate.
 Helping uncover the misjudgements, errors etc.
 Reduce development time and cost of manufacturing.

(10) Explain the methodology used for

FMEA. FMEA Procedure
1. For each process input (start with high value inputs), determine the ways in which the
input can go wrong (failure mode)
2. For each failure mode, determine effects
⚫ Select a severity level for each effect
3. Identify potential causes of each failure mode
⚫ Select an occurrence level for each cause
4. List current controls for each cause
⚫ Select a detection level for each cause
5. Calculate the Risk Priority Number (RPN)
6. Develop recommended actions, assign responsible persons, and take actions
⚫ Give priority to high RPNs
⚫ MUST look at severities rated a 10

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7. Assign the predicted severity, occurrence, and detection levels and compare RPNs
FMEA Inputs and Outputs
Severity,Occurrence, and Detection
o Severity
 Importance of the effect on customer requirements
o Occurrence
 Frequency with which a given cause occurs and
creates failure modes
o Detection
 The ability of the current control scheme to detect
or prevent a given cause
Rating Scales
⚫ There are a wide variety of scoring “anchors”, both quantitative or qualitative
⚫ Two types of scales are 1-5 or 1-10
⚫ The 1-5 scale makes it easier for the teams to decide on scores
⚫ The 1-10 scale may allow for better precision in estimates and a wide variation in scores
(most common)
⚫ Rating Scales
⚫ Severity
⚫ 1 = Not Severe, 10 = Very Severe
⚫ Occurrence
⚫ 1 = Not Likely, 10 = Very Likely
⚫ Detection
⚫ 1 = Easy to Detect, 10 = Not easy to Detect
⚫ Risk Priority Number (RPN)
⚫ RPN is the product of the severity, occurrence, and detection scores.

Summary
An FMEA:
⚫ Identifies the ways in which a product or process can fail
⚫ Estimates the risk associated with specific causes
⚫ Prioritizes the actions that should be taken to reduce risk
(11) Explain with an example Process FMEA document.
The basic philosophy behind process FMEA document is shown in the following
document. Process FMEA is an analytical Technique utilized by a manufacturing Responsible
Engineering Team as a means to assure that , to the extent possible, potential failure modes and
associated causes /mechanisms have been considered and addressed.

FMEA TEAM :
Engineers from- Assembly- Manufacturing- Materials - Quality - Service- Supplier-
Customer.
FMEA DOCUMENTATION :
The purpose of FMEA documentation is
 To allow all involved Engineers to have access to others thoughts
 To design and manufacture using these collective thoughts (promotes team approach)

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UNIT V – QUALITY SYSTEMS

Overview and evolution of of IS 9000 series of standards .

The International Organization of Standardization (ISO) was founded in 1946 in
Geneva, Switzerland. The development of International Standards is to facilitate the
exchange of goods and services worldwide. ISO consists of more than 90 country members.
The ISO Technical Committee (TC) developed a series of International Standards for Quality
Systems, which were first published in 1987. The standards (ISO 9000, 9001, and 9004)
were intended to be advisory and developed for use in two-party contractual situations and
internal auditing.
These standards were adopted by European Community and have been accepted
worldwide with emphasis on quality and economic competitiveness.
The fourth edition of ISO 9001 was released in the year 2008 and it replaces the third
edition (ISO9001: 2000), which have been amended to clarify the points in the text and also
to enhance the compatibility with ISO 14001: 2004.
Most countries have adopted ISO 9000 series as their national standards.

(1) Explain briefly the scope and purpose of ISO 9000 Series standards.

The ISO 9000 series Standards is generic in scope. By design, the series can be
tailored to fit any organization’s needs. Whether it is large or small, a manufaturerer or a
service organization. It can be applied to construction, engineering, health care, legal, and
other professional services as well as the manufacturing of anything from nuts and bolts to
spacecraft. Its purpose is to unify quality terms and definitions used by industrialized nations
and use those terms to demonstrate the supplier’s capability of controlling the processes.
In very simplified terms, the standards require an organization to say what it is doing
to ensure quality, then do what it says, and, finally document or prove that it has done what it
said.

The ISO 9000 Series of Standards.

ISO 9000: 2005 - Quality Management Systems (QMS)

Fundamentals and Vocabulary discusses the fundamental concepts related to QMS
and provides the terminology used in the other two standards.
ISO 9001: 2008 – Quality Management Systems (QMS)
Requirements are the standards used registration by demonstrating conformity of the
QMS to customers, regulatory and organization’s own requirements.
ISO 9004 : 2000- Quality Management Systems (qms)
GUIDELINES FOR PERFORMANCE IMPROVEMENT provides guidelines that an
organization can use to establish a QMS focused on improving performance.
ISO 9000
ISO 9001
ISO 9002
ISO 9003

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ISO 9001
Design, Development, Production, Installation & Servicing

ISO 9002
Production, Installation & Servicing

ISO 9003
Inspection & Testing
ISO 9004
Provides guidelines on the technical, administrative and human factors affecting the
product or services.

BENEFITS OF ISO 9000 STANDARDS :

 Achievement of international standard of quality.
 Value for money.
 Customer satisfaction.
 Higher productivity.
 Increased profitability
 Improved corporate image
 Access to global market
 Growth of the organization
 Higher morale of employees

CLAUSES (ELEMENTS) OF ISO 9000 (During the year 1987)

Management Responsibility
 Adequate resources for the verification activities
 Need for trained personnel
 Work and verification activities including audits
 A Management Representative to be identified
 Review the Quality System performance and customer complaints periodically
Quality System
Contract review
Design Control
Documents Control
Purchasing
Purchaser – Supplied Product
Product Identification and Traceability
Process Control
Inspection and Testing
Inspection Measuring and Test Equipment
Inspection and Test Status
Control of Non – Conforming Product
Corrective Action
Handling, Storage, Packaging and Delivery

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Quality Records
Internal Quality Audits
Training
Servicing
Statistical Techniques

CLAUSES (ELEMENTS) OF ISO 9000 (During the year 2000)

1. Scope
2. Normative Reference
3. Terms and Definitions
4. Quality Management System (QMS)
General Requirements
Documentation
5. Management Responsibility
Management Commitment
Customer Focus
Quality Policy
Planning
Responsibility, Authority and Communication
Management Review
6. Resource Management
Provision of Resources
Human Resources
Infrastructure
Work Environment
7. Product Realization
Planning of Product Realization
Customer related processes
Design and Development
Purchasing
Production and Service Provision
Control of Monitoring and Measuring devices
8. Monitoring and Measurement
General
Monitoring and Measurement
Control of Non-Conforming Product
Analysis of Data
Improvement

IMPLEMENTATION OF QUALITY MANAGEMENT SYSTEM :

1. Top Management Commitment

2. Appoint the Management Representative

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3. Awareness
4. Appoint an Implementation Team
5. Training
6. Time Schedule
7. Select Element Owners
8. Review the Present System
9. Write the Documents
10. Install the New System
11. Internal Audit
12. Management Review
13. Pre-assessment
14. Registration

PITFALLS OF SUCCESSFUL IMPLEMENTATION :

1. Using a generic documentation program or another organization’s documentation
program
2. Over-documentation or documentation that is too complex
3. Using External Consultants without involvement
4. Neglecting to obtain top management’s involvement
5. Developing a system that does not represent what actually occurs

DOCUMENTATION
In every organization, the quality system must be documented properly. The
documentation of the system can be seen as a hierarchical format as shown.
1
POLICY

2
PROCEDURE

3
PRACTICE

4
PROOF

Quality Audit
Systematic, independent and documented process for obtaining audit evidence and
evaluating it objectively to determine the extent to which audit criteria are fulfilled.
Types of audit
3 types

o Process audits

o Product audits

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o System audits

Process audits
• Evaluation of the content and effectiveness of specific processes and work
activities

• To confirm the process parameters and improve capability of the process

• To ensure the realization of process quality characteristics

• To ensure improvement of process control during service provision

• Product audits

-To identify opportunities for improvement to establish the quality level of units before final
inspection and testing
-To establish the capability of the inspection function
-To determine the usefulness of inspection/tests
• Audits are distinguished by the party requesting:

• 1st party audit (internal audits) – the auditee audits its own quality system according to
a quality standard.

• 2nd part audits (supplier audits) – the customer audits the supplier’s quality system

• 3rd party audits – these are external certification audits by an independent institution
in order to certify the quality system

Products audits
Investigation of products conformance to specified characteristics
-To obtain additional neutral assessment of product’s level of quality
-To obtain additional assurance that specified quality requirements are met
System audits
• Evaluation all the elements of the quaity system in order to:-

• Verify usefulness, suitability and effectiveness

• Verify adequate documentation

• Verify compliance with requirements

• Determine weak points

Purpose of audits
• Registration / certification audit

• Verify that the organization's QMS meet the requirements of ISO 9001 : 2000

Internal audit
• Identify opportunities for improvement

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• Maintain ISO 9001 certification

(2) What are the objevtives of Internal

audit? Objectives of the Internal audit

• To verify conformance to applicable standards

• To verify conformance to documented procedures

• To verify effectiveness of the processes in the system

• To identify opportunities to improve the system

• Creating and environment for successful audits (1)

QUALITY AUDITING

The term Audit refers to a regular examination and checking of accounts or financial records,
settlement or adjustment of accounts.
It also refers to checking, inspection and examination of Production Processes.

PURPOSE OF QUALITY AUDIT :

 To establish the adequacy of the system.
 To determine the effectiveness of the system.
 To afford opportunities for system analysis.
 To help in problem solving.
 To make decision making easier etc.

TYPES OF QUALITY AUDIT :

1. First – Party Audit.
2. Second – Party Audit.
3. Third – Party Audit.

Quality audit can also be classified on the basis of the area taken into account for the audit such as
 System Audit.
 Process Audit.
 Product Audit.
 Adequacy Audit.
 Compliance Audit.

ISO 14000 – ENVIRONMENTAL MANAGEMENT SYSTEM (EMS)

The overall aim of the Environmental Management systems is to provide protection to the
environment and to prevent pollution.
 The success of ISO 9000 along with increased emphasis on Environmental issues was
instrumental in ISO’s decision to develop Environmental Management Standards.

 In 1991, ISO formed the Strategic Advisory Group on the Environment (SAGE) which led
to the formation of Technical Committee (TC) 207 in 1992.

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 Mission of TC207 is to develop standards for an Environmental Management System

(EMS) which was identified as ISO 14000.

 TC 207 has Established six sub-committees

1. Environmental Management System (EMS)
2. Environmental Auditing (EA)
3. Environmental labeling (EL)
4. Environmental Performance Evaluation (EPE)
5. Life-Cycle Assessment (LCA)
6. Terms & Definitions

Environmental Management System (EMS) :

EMS has two Evaluation Standards. They are

1. Organization Evaluation Standards 2. Product Evaluation Standards

REQUIREMENT OF ISO 14001

There are six elements
1. GENERAL REQUIREMENTS

 EMS should include policy, planning implementation & operation, checking & corrective
action, management review.

2. ENVIRONMENTAL POLICY (Should be based on mission)

 The policy must be relevant to the organization’s nature.

 Management’s Commitment (for continual improvement & preventing pollution).
 Should be a framework (for Environmental objectives & Targets).
 Must be Documented, Implemented, & Maintained.

3. PLANNING

 Environmental Aspects
 Legal & other Requirements
 Objectives & Targets
 Environmental Management Programs

4. IMPLEMENTATION & OPERATION

 Structure & Responsibility

 Training, Awareness & Competency
 Communication
 EMS Documentation
 Document Control
 Operational Control
 Emergency Preparedness & Response

5. CHECKING & CORRECTIVE ACTION

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 Monitoring & Measuring

 Nonconformance & Corrective & Preventive action
 Records
 EMS Audit

6. MANAGENMENT REVIEW

 Review of objectives & targets

 Review of Environmental performance against legal & other requirement
 Effectiveness of EMS elements
 Evaluation of the continuation of the policy

ISO 14000: Environmental Standards

ISO 14000

The International Organization for Standards published its Quality Management System
(ISO9000) in 1987. ISO9000 became an instant worldwide success.

In 1991, ISO formed Strategic Advisory Group on the Environment (SAGE). The purpose of
formation of this group was worldwide increase in emphasis of management of environmental issues
a part of quality management systems. This group proposed the formation of Technical Committee to
develop standards that deal with environmental management system. This technical committee, TC
207 developed the standards called ISO14000.

The EMS is part of a comprehensive management system that addresses with the overall
business activities, including its products and services, affect the environment.

ISO14000SeriesStandards

ISO14000 is a generic standard. When we state the term generic, we mean that- like
ISO9000-it is not an industry specific standard.

The series is divided into two separate areas-the organization evaluation standards and the
product evaluation standards. The first deals with Environmental Management System (EMS),
Environmental Auditing (EA), and Environmental Performance Evaluation (EPE), whereas later deals
with Environmental Aspects in Product Standards (EAPS), Environmental Labeling (EL), and Life-
Cycle Assessment (LCA).

See following figures to understand the division of standards as mentioned above:

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Concepts of ISO 14001:2004Standards

In this post we will particularly discuss ISO 14001:2004 because this standard is the heart of
all the environmental standards. This standard provides organizations with the elements of for
environmental systems, which can be integrated into other management systems to help achieve
environmental and economic goals.

This standard provides guidelines for registration and/or self-declaration of the organization’s
environmental management systems. This standard is written in a manner that it can be applicable to
all types and sizes of organizations. This standard is also capable to accommodate diverse
geographical, cultural, and social conditions.

The demonstration of successful implementation of the system can be used to assure other
parties that an appropriate EMS is in place. The basic approach to Environmental System can be
understood with the help of following diagram:

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EnvironmentalManagement SystemModel

ISO14001:2004worksas follows:

 As stated earlier in this post that ISO14000 is generic in nature. It does not intend to
specify the level of environmental performance of an organization. If that had been the case,
ISO would have written it according to the specific activity of each business.
 However, ISO has developed many other environmental standards that deal with specific
environmental standards. These standards are beyond the scope of ISO14001:2004 standards
at the moment.
 ISO14001:2004 provide a framework to the organizations so that they could communicate
about EMS matters with the other stakeholders including customers, environmental
regulators, the public and so forth.
 It also provides framework to the organizations-irrespective of their current level of
environmental maturity-to remain committed for environmental management and its
continual improvement as well.

BENEFITS OF ENVIRONMENTAL MANAGEMENT SYSTEM :

GLOBAL BENEFITS
 Facilitate trade & remove trade barrier
 Improve environmental performance of planet earth
 Build consensus that there is a need for environmental management and a
common terminology for EMS

ORGANIZATIONAL BENEFITS
 Assuring customers of a commitment to environmental management
 Meeting customer requirement
 Improve public relation
 Increase investor satisfaction

DEPARTMENT OF MECHANICAL ENGINEERING- LBRCE

20ME35 TOTAL QUALITY MAMANGE MENT

 Market share increase

 Conserving input material & energy
 Better industry/government relation
 Low cost insurance, easy attainment of permits & authorization

DEPARTMENT OF MECHANICAL ENGINEERING- LBRCE