A Course Material on

TOTAL QUALITY MANAGEMENT

Mrs. S.S Kayalvizhi

ASSISTANT PROFESSOR
DEPARTMENT OF BUSINESS ADMINISTRATION
RAAK ARTS AND SCIENCE COLLEGE

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Subject Code : 23PMBA E37/1
Subject: TOTAL QUALITY MANAGEMENT

Class : MBA II - YEAR

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Name: S.S Kayalvizhi

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 TOTAL QUALITY MANAGEMENT
UNIT– 1
TOTAL QUALITY MANAGEMENT (TQM)
Total quality management (TQM) is the continual process of detecting and reducing or
eliminating errors in manufacturing. It streamlines supply chain management, improves the customer
experience, and ensures that employees are up to speed with training.
Total quality management aims to hold all parties involved in the production process accountable
for the overall quality of the final product or service.

TQM FRAMEWORK:
Total Quality Management (TQM) is a framework revolving around the principle that quality
needs to be maintained in every aspect of a company’s operations.
This means that everyone in the organization is accountable for the quality of the output, leading
to fewer errors and continual improvement of operations. Simply put, the end goal of TQM is doing the
right things, right the first time, every time.
Total Quality Management (TQM) is a management framework based on the belief that an
organization can build long-term success by having all its members -- from low-level workers to its
highest-ranking executives -- focus on improving quality and, thus, delivering customer satisfaction.
This management approach is used to simplify supply chain management, as well as to detect,
reduce or remove errors. TQM requires organizations to focus on continuous improvement, or Kaizen.
TQM focuses on continual internal and process improvements over the long term, thereby enhancing the
quality of produced products or services.

Total Quality Management (TQM) is a framework that focuses on improving quality and customer
satisfaction by involving all employees in an organization. The framework is based on the idea that
quality should be maintained in every aspect of a company's operations. The goal of TQM is to do the
right thing, right the first time, every time.
BENEFITS OF TOTAL QUALITY MANAGEMENT
Total Quality Management (TQM) offers several benefits for an organization, including:
1. Increased Productivity:
Consistent process improvement, enhanced worker engagement, and decreased inefficiencies can yield
increased productivity in businesses' goods and/or services.
2. Removal of Defects and Waste:
Continuous improvement and a strategic approach eliminate inefficiencies, waste, and defects that
degrade products. This approach helps in the efficient manufacturing of high-quality products.
3. Strengthen Competitive Position:
Businesses rise if they generate high-quality goods and/or services in the market. This consistency in
providing quality products increases competencies with rivals by attracting more customers and
strengthening the position in the market.
4. Enhanced Profitability:
The higher the quality of the products, the higher their value in the market. Consistent satisfaction with
the quality of products builds trust among consumers, leading them to stay loyal to the products. This
leads to an increase in profitability and higher revenues.
5. Greater Market Share:
The more satisfied the customers are with the higher quality of the goods and/or services, the higher the
reliability, revenue growth, and market share through word-of-mouth marketing or upselling by the
consumers.
6. Adaptability to Change:
Total Quality Management promotes agility and adaptability through consistent improvement in the
process. Continuous learning makes organizations susceptible to changes in technology, market, and
customer demands.
7. Higher Job Security:
One of the benefits of TQM is increasing job security through efficiently establishing the organization in
the business market. This stability of the organization with improved work culture and increased
opportunities ensures higher job security for employees.
8.Improved Customer Satisfaction:
Consumer satisfaction motivates organizations to keep delivering high-quality products in the market.
One of the key benefits of TQM is that it prioritizes the customer’s requirements and expectations and
encourages innovation, leading to enhanced satisfaction and loyalty of the consumers for a longer
duration.
9. Upgraded Processes:
Monitoring processes and keeping them updated according to the regulatory bodies, market trends, and
patterns contributes to the success of the products. Once the goods and/or services meet the business
goals, the business remains competitive.
otal Quality Management (TQM) awareness is a process of improving one's knowledge, skills, and
attitude about TQM. It also involves changing behaviors to perform tasks more effectively and
efficiently.
AWARENESS OF TQM:
• Management commitment: For TQM to succeed, management needs to be committed to the
process and provide the necessary time and resources.
• Communication: The purpose of TQM needs to be clearly communicated to all personnel.
• Training: Training and education should be an ongoing process for everyone in the
organization.
• Customer focus: TQM is customer-oriented and focuses on continuous improvement.
• Leadership: Managers at all levels need to provide consistent, active, and enabling leadership.
• Culture: Changing an organization's culture can be difficult, but management needs to
understand and use the basic concepts of change.
• Feedback: An effective feedback mechanism is necessary to understand the changing needs and
expectations of customers.

Obstacles of TQM
TQM is not just another fashionable management theory. It is not a quick fix to solve the
problems overnight. There are many barriers to implementing Total Quality Management. They show
themselves in all business sectors-manufacturing, services, government and even education. Therefore, it
is important for all organizations to understand and avoid these barriers both before and during TQM
implementation. It takes a long time to build the appropriate emphasis and techniques into the culture.
Overemphasis on short-term results and profits has to be avoided. These barriers can be divided into two
categories:
1. Organizational barriers
2. Behavioral barriers
Organizational Barriers
These are the most visible barriers of TQM implementation and are spread all over organization.
1. Lack of Commitment by Top Management:
The primary responsibility of TQM rests with the top management. Therefore, there must be
substantial commitment by top management for TQM. This commitment must be manifest by the
management time and organizational resources they keep for implementation of TQM. In some
organizations, the quality initiative is delegated to an outside expert. When top management
commitment is missing, it passes on to other levels easily. All such organizations experience employee
participation and interest in TQM programs.
2. Lack of continuous Training and Education:
Lack of training is the next most important obstacle. This gives rise to confusion about the
various aspects of the program. This is like building walls and ceiling without laying the foundation.
Naturally, such a structure would collapse. Training and education is an ongoing process for everyone in
the organization. When senior management conducts the training on the principles of TQM, its
effectiveness increases.
3. Improper Planning:
Planning accounts for more than 50% of the job. Planning works well when all the concerned
people are involved. TQM is no exception. TQM is about empowerment of people and participative
management. All constituents of the organization should be the goal. Financial or sales goals take a back
seat.
4. Inadequate use of empowerment and teamwork:
TQM is all about teamwork, participative management and empowerment of employees.
However, working in teams is an approach that has to be learned. The Team members need to have
proper training. Supervision must learn how to be effective coaches. Further employees need to be
empowered to take decisions that affect the efficiency of their process. The lacks of these result in
frustration.
5. Inability to change organizational culture:
The organization must undergo cultural change before teamwork can succeed. Individuals resist
change. The resistance has to be overcome. It is very difficult to change an organization’s culture and it
takes time. It may take around five years for individuals to unlearn the old ways and learn the new ways.
Once they are accustomed to doing a particular process it becomes the preferred way. People change
only when they want to and only to meet their own needs. Nobody would change for the organization
unless adequate reason is given and accepted by him or her. Management must understand and utilize
these basic concepts of change. Further people must be moved from a state of fear to trust for accepting
a change. Lack of effective communication and emphasis on short-term results are the main reasons for
this. Sufficient time has to be spent by organizations for planning for the cultural aspects of
implementing a TQM program.
6. Incompatible Organizational Structure and Isolated Individuals and Departments:
More often, the organizational structure may not be conducive to team building. It can create
differences between various departments and between individuals. These differences may create
implementation problems. Use of multifunctional terms can help to rectify this. The whole organization
has to be made customer oriented to make it more responsive to customer needs. The organization will
have to be structured for the same.
7. Ineffective Measurement Techniques and Lack of Access to Data and Results:
Effective Measurement acts as a booster to the improvements made. It would also inspire and
encourage the participants to achieve more on the hand and to rectify and improve on the other hand. It
is equally important that the progress is known within a reasonable period of time. Otherwise people
lose interest and become frustrated. Access to relevant and quick retrieval is necessary for this. Effective
decisions cannot be made in their absence.
8. Paying inadequate attention to internal and external Customers:
The needs and expectations of customers will be changing over time. There are internal suppliers
and internal customers. If we want to take care of the ultimate external customer, it is essential that the
internal customer’s en route have to be properly attended to. Organization needs to understand this
through effective feedback mechanisms.
9. Failure to Continually Improve:
One of the cardinal principles of TQM is continuous improvement. This continuous
improvement is a journey and not a destination. A lack of continuous improvements of the process,
product, and/or service is bound to make the implementation a failure.
10. Apparent lack of business experience and knowledge:
This aspect of continuous improvement in all the activities of an organization implies continuous
learning and improving knowledge and experience. Every mistake is a valuable lesson in experience.
People have to upgrade not only their knowledge about the product and process but also about
customer’s perception changes.
11. Taking narrow dogmatic approach:
Some organizations are determined to follow the Deming approach or Juran approach or Crosby
approach, etc. It must be remembered that the each of the quality gurus and other experts have made
valuable contribution. For TQM to be successful, it is imperative that organization has to assimilate from
all these philosophies and create a blue print for their success.
WHAT IS PURPOSE, MISSION, AND VISION STATEMENTS?
Purpose, Mission, and Vision Statements explain why a company exists, how it plans to achieve its
goals, and what the business will ultimately achieve.
A Purpose Statement is an explanation of the company’s motivations and reasons for being, and why
it works the way it does.
A Mission Statement is a definition of the company’s business, who it serves, what it does, its
objectives, and its approach to reaching those objectives.
A Vision Statement is a description of the desired future state of the company. An effective vision
inspires the team, showing them how success will look and feel.
 A quality policy statement, vision statement, and mission statement are all part of a business's quality
management system and strategic planning process:
• Quality policy statement
A brief document that outlines the organization's quality standards and processes for meeting
them. It's used internally to establish a quality baseline for employees, and is often shared with
customers, suppliers, investors, and regulators.
• Vision statement
A short declaration of what the organization wants to be in the future. It's a source of inspiration and
should be set far enough into the future so it doesn't need to be revisited every year.
• Mission statement
A statement of purpose that describes the organization's purpose, who its customers are, and how it
operates.
Together, these statements provide strategic direction for an organization and inform current and
future business strategies.

CUSTOMER FOCUS:

What is customer focus?

Customer-focused businesses are built around customers’ needs. Becoming one involves
concentrating on how every interaction helps the customer, rather than how it helps your
business.
Putting customers at the heart of everything you do as a business places you in a better
position to build relationships, help customers to achieve their goals, and increase
customer satisfaction.
Yet many companies are falling at the first hurdle, as they fail to understand customers’ needs and
expectations, or to adapt to their actions and behaviors.
According to Salesforce’s “State of the Connected Customer” report, 73% of customers expect
companies to understand their needs and expectations, but only 51% believe companies generally do.
Similarly, 62% of customers expect companies to adapt based on their actions and behaviors, but just
47% believe companies generally do.
pirate ship. In another, the MRI is a spaceship transporting the patient into space. Since the redesign, the
number of children needing sedation has fallen dramatically and patient satisfaction scores have
increased to 90%.
How do you build a customer-focused culture?
To build a truly customer-focused culture, you first need to ensure you understand your customers
and their needs. This involves collecting disconnected sources of customer data into a single, 360-degree
view of your customer and, of course, being able to put that data into action to deliver better
experiences.
These six tips will get you started:
• 1. Listen to your customers
• 2. Make space for ideas
• 3. Break down internal barriers
• 4. Unlock your data
• 5. Appoint a customer-focused advocate
• 6. Create opportunities for learning
1. Listen to your customers
To really get to know your customers, put yourself in their shoes and ask:
• What are their needs?
• What’s driving their decision-making?’
• What are their goals?
• What are they feeling?
For example, knowing that a customer’s primary goal is to save time at work and spend more time
with family can help you find them the right solution.

Enabling a sense of customer empathy. Take a walk in your customers’ shoes to help
you gain a new perspective on aspects of your business you’re not close to. For example,
you may believe focusing on a product’s high-tech specifications is the best way for a
sales representative to seal a deal. But customers may be more interested in hearing how
it will help make their life easier.
 Although sales and customer service staff are on the front line dealing with
customers, improved customer focus should be a company-wide priority.
Make space for ideas
According to the “State of the Connected Customer” research, 62% of customers
now expect companies to adapt based on their actions and behaviors. This increases to
67% among Millennials and Generation Z.
Many businesses have traditionally left new ideas to a select group, but great ideas
can come from anywhere. In fact, organizations including Unilever, Ikea, and Lego now
actively involve customers in problem-solving and new product development through co-
creation platforms and initiatives.
As organizational consultant Simon Sinek said, “The role of a leader is not to come
up with all the great ideas. The role of a leader is to create an environment in which great
ideas can happen.”

Break down internal barriers

Silos, swim lanes, bubbles. Organizational experts may use different terms, but the
core problem is the same: Customer data lives in multiple systems owned by different
departments, which leads customers to have a disconnected experience when dealing with
your business.
While 78% of customers say they expect consistent interactions across
departments, their expectations are falling short: 59% said it typically feels as though
they’re communicating with separate departments, not one unified organization. About
two-thirds (66%) of customers said they often have to repeat or re-explain information to
different representatives.
Disjointed data is a significant barrier to creating the more valuable, personalized
experiences customers are looking for from businesses these days.
Breaking down silos is easier said than done. But to be truly customer-focused,
businesses need to work toward building a complete 360-degree customer view. In doing
so, they will be able to deliver unified cross-channel customer engagement.
4. Unlock your data
Technologies such as artificial intelligence (AI) and the Internet of Things
(IoT) raise the bar for business. Many consumers and business buyers are prepared to pay
a premium for differentiated, first-to-market products and services, putting businesses
under pressure to get ahead.
Seventy-five percent of customers expect companies to use new technologies to create
better experiences. A similar proportion (74%) expect companies to use existing
technologies in new ways to create better experiences.
This might mean using a customer’s browsing and purchasing history to make
personalized recommendations. Or sending push notifications to a customer’s phone
offering a discount on products they’ve browsed. It could also mean using chatbots to
collect and qualify information so agents have more time to spend solving customers’
problems.
5. Appoint a customer-focused advocate
Customer focus can get lost in the day-to-day business of, well, running a business.
That’s why appointing a chief customer officer (CCO) is a great idea.
The CCO’s role is to be the voice of the customer and ensure that customer focus is
maintained throughout your organization. They use data and research to champion
customers’ needs, help guide the design of products and processes, and identify where
teams need to improve their customer focus skills.
They also ensure that having a strong customer focus results in tangible benefits to
your business, including increased customer satisfaction, less customer churn, and greater
revenue.
6. Create opportunities for learning
Although building a customer-focused culture isn’t something you do overnight,
implementing these strategies will set you on the path for success.
Keep employees updated on progress, invite their ideas and feedback, and provide
access to resources such as Salesforce Trailhead training modules to help them develop
customer-focus skills. Options are many, including the basics of customer journeys and
improving customer service agents’ communication skills.
Ultimately, by creating a culture where customers’ needs are at the heart of every
interaction, businesses create a compelling offer for customers and a significant
competitive advantage. But there is another reason businesses should make customer
focus a priority.
Technologies are disrupting whole industries at an unprecedented pace. Understand
what your customer needs to anticipate disruption, or even drive it. As history has
repeatedly shown, it’s better to disrupt yourself than drag your heels while someone does
it to you. Just ask Blockbuster.
CUSTOMER FOCUS IN SHORT
Customer focus is a business strategy that prioritizes customers' needs and
preferences in all aspects of a company. It's a core value that can help a business build
strong relationships with customers, increase customer satisfaction, and boost the bottom
line.
ways to improve customer focus:
• Understand customers: Understand customers' needs and expectations, and adapt
to their actions and behaviors.
• Build a customer-focused culture: Ensure that every employee, regardless of
their position, focuses on customers.
• Seek feedback: Constantly seek feedback from customers and be willing to make
changes based on it.
• Hire the right people: During the hiring process, gauge candidates' customer
mindset.
• Use customer service tools: Take advantage of customer service tools.
• Create a customer forum: Create a customer forum to listen to customers.
• Bring clients to your people: Bring clients to your employees to meet them in
person.
CUSTOMER PERCEPTION OF QUALITY:
CUSTOMER PERCEPTIONS OF QUALITY BASED ON 6 DYNAMIC FACTORS
There is no fixed rule about quality level. Customer’s needs, values and expectations
are constantly changing and becoming much more demanding. Customer perceptions of
quality are widely affected/controlled by six dynamic factors.
1. Performance
2. Features
3. Services
4. Warranty
5. Price
6. Reputation
PERFORMANCE
Performance is one of the key aspects of customer perceptions of quality can be
further broken down; 1. Availability of the product: A product will operate when needed.
2. Reliability: Freedom from failures over time. 3. Maintainability: Easy to maintain and
keep operatable over time.
FEATURES
In addition to the primary functions of a product or service, customers look for
secondary functions as a feature. The best example to understand is “CAR”, the primary
function is “Transport”, all other functions we get are features.
SERVICES
Most challenging and highly networking factor. Providing the best customer
service is different from achieving product quality. Organizations should find the best
way to provide better service to their customers.
WARRANTY
Warranty is a marketing muscle. This represents the organization’s quality promise
to the customers. Warranty minimizes the risks in the purchasing process and encourages
customers to buy the product or services.
PRICE
The customer’s concept of value is constantly changing. Customers may willing to
pay a higher price to obtain a value. Organizations must keep an eye on customers’
changing trends, and keep competitive prices over the competition.
REPUTATION
Customers are willing to pay a premium for a trusted brand. Customer retention is
an important strategy for any organization. Total customer satisfaction is based on the
entire experience. All together can improve the reputation of the organization over the
period.

Quality does not mean performance alone; customer perceptions of quality is different from what
we think. By understanding how your customers perceive the quality, any organization can build a
wonderful customer experience.
In Total Quality Management (TQM), customer perception of quality is the overall experience a
customer has with a business. It's based on how customers compare their expectations to the product or
service's performance. Factors that influence customer perception include:
• Performance: How available, reliable, and maintainable the product is
• Features: The secondary functions of a product or service, in addition to its primary functions
• Services: The quality of customer service
• Warranty: The organization's quality promise to customers
• Price: The price of the product or service
• Reputation: The reputation of the company that produces the product or service
 Customer perception is influenced by both direct and indirect interactions with a business, such
as social media, online reviews, and influencers. Some elements, like the quality of the product or
service and the prices, can be controlled, but others, like reviews and social media posts, can't.

TRANSLATING NEEDS INTO REQUIREMENTS:

Translate Needs into Requirements

1. Identify Customer Needs:

o Gather Feedback: Use surveys, interviews, and focus groups to collect data
on customer expectations.
o Analyze Market Trends: Study industry benchmarks and competitor
offerings to understand broader customer preferences.
2. Define Needs Clearly:
o Use the Voice of the Customer (VoC): Document and prioritize customer
feedback to highlight key needs.
o Categorize Needs: Differentiate between essential needs (must-haves) and
desirable needs (nice-to-haves).
3.Translate Needs into Specific Requirements:
o Develop Specifications: Create clear, measurable specifications based on
the identified needs. For instance, if customers need a faster delivery time,
specify the exact time frame.
o Use SMART Criteria: Ensure requirements are Specific, Measurable,
Achievable, Relevant, and Time-bound.
Engage Cross-Functional Teams:
• Collaborate Across Departments: Involve teams from product development, marketing, and
operations to refine requirements and ensure they are feasible and aligned with business
objectives.
Prioritize Requirements:
• Use Ranking Methods: Evaluate requirements based on factors like cost, impact on customer
satisfaction, and technical feasibility to prioritize what to address first.
Document Requirements:
• Create a Requirements Document: Clearly articulate all requirements in a structured format,
ensuring all stakeholders have access and understand them.
Validate Requirements with Customers:
• Seek Feedback: Share the translated requirements with customers to confirm that they meet
their needs and expectations.
Iterate and Refine:
• Continuous Improvement: Regularly review and update requirements based on new customer
feedback, changes in the market, or technological advancements
CUSTOMER RETENTION:
 Total quality management (TQM) can be used to improve Customer Retention, which is a
company's ability to keep customers over time. Customer retention is important because it's cheaper to
keep existing customers than to acquire new ones.
Here are some ways that TQM can be used to improve customer retention:
• Set expectations: Set expectations early and a little lower than what you can provide.
• Build relationships: Build relationships with customers through shared values and by going
above and beyond.
• Provide value: Provide value with every interaction throughout the customer lifecycle.
• Personalize service: Make interactions tailored and personal.
• Use social media: Use social media to connect and communicate with customers.
• Provide prompt customer service: Resolve customer issues and queries in a timely manner.
• Create a loyalty program: Create a loyalty program or reward system.
Some metrics that can be used to measure customer retention include:
• Revenue churn: The percentage of monthly recurring revenue (MRR) lost over a time period
• Net promoter score (NPS): How many customers are likely to recommend your product or
service to someone else
• Repeat purchase rate: The percentage of customers who transact with you again after
completing their first purchase
Customer retention is a measure of how many customers stay with your business for the
long term. It's what demonstrates your business's ability to stimulate customers to make repeat
purchases and spend more money on your products and services over time.
DIMENSIONS OF PRODUCT AND SERVICE QUALITY
Companies can use these dimensions to measure customer expectations versus how the service
was actually delivered. Regular measurement can help companies understand customer perceptions and
areas for improvement.

The dimensions of product and service quality in total quality management (TQM) are:
• Performance: The main characteristics of the product.
• Features: Additional characteristics that enhance the product's appeal.
• Reliability: How well the product can be depended on.
• Conformance: How well the product meets design specifications and industry standards.
• Durability: The length of a product's life.
• Serviceability: How quickly the product can be put into service when it breaks down.
• Aesthetics: The product's appearance, feel, smell, or taste.
• Perceived quality: The quality attributed to a good or service based on indirect measures.
Companies may not be able to pursue all eight dimensions simultaneously. For example, a company
may need to sacrifice reliability in order to pursue higher speed
COST OF QUALITY:

Cost of quality (COQ) is a method for calculating the total cost of a business's
activities to ensure the quality of its products or services.
The goal of calculating COQ is to understand how quality impacts a business's
bottom line. It helps businesses analyze their quality operations and improve them.
The cost of quality equation is COQ = CoGQ + CoPQ, where CoGQ is the cost of
good quality and CoPQ is the cost of poor quality.
Cost of Quality (COQ) is a method for calculating the costs a company incurs to
ensure quality and the costs of producing poor quality products or services. It's a key tool
for understanding how quality affects a company's bottom line.
COQ includes the costs of:
• Conformance
Also known as Cost of Good Quality (COGQ), these are the costs associated with
doing quality work, improving quality, and achieving quality goals. This includes the
costs of audits and maintenance.
• Non-conformance
Also known as Cost of Poor Quality (COPQ), these are the costs associated with
fixing problems and lost revenue due to poor quality. This includes the costs of scrap and
rework.
• External failure
 These are the costs incurred after a product has been sold to customers. These costs
can be destructive to a business because they can lead to angry customers who may not
rebuy or recommend the company.
The goal of COQ is to reduce the total cost of quality, which can lead to increased
profitability and quality. A COQ program can help a company:
• Justify corrective actions and improvement projects
• Identify inefficient processes that result in waste
• Prioritize quality efforts and activities
• Highlight strengths and weaknesses of the quality and manufacturing system
• Expose waste and other opportunities for improvement
COST OF QUALITY IN DETAILED :
How to Measure Cost of Quality (COQ)
The methods for calculating Cost of Quality vary from company to company. In many cases,
organizations like the one described in the previous example, determine the Cost of Quality by
calculating total warranty dollars as a percentage of sales. Unfortunately this method is only looking
externally at the Cost of Quality and not looking internally. In order to gain a better understanding, a
more comprehensive look at all quality costs is required.
The Cost of Quality can be divided into four categories. They include Prevention, Appraisal,
Internal Failure and External Failure. Within each of the four categories there are numerous possible
sources of cost related to good or poor quality. Some examples of typical sources of Cost of Quality are
listed below.
The Cost of Good Quality (CoGQ)

1. Prevention Costs – costs incurred from activities intended to keep failures to a minimum. These can
include, but are not limited to, the following:
o Establishing Product Specifications
o Quality Planning
o New Product Development and Testing
o Development of a Quality Management System (QMS)
o Proper Employee Training
2. Appraisal Costs – costs incurred to maintain acceptable product quality levels. Appraisal costs can
include, but are not limited to, the following:
o Incoming Material Inspections
o Process Controls
o Check Fixtures
o Quality Audits
o Supplier Assessments

3. Internal Failures – costs associated with defects found before the product or service reaches the
customer. Internal Failures may include, but are not limited to, the following examples:
o Excessive Scrap
o Product Re-work
o Waste due to poorly designed processes
o Machine breakdown due to improper maintenance
o Costs associated with failure analysis
4. External Failures – costs associated with defects found after the customer receives the product or
service. External Failures may include, but are not limited to, the following examples:
o Service and Repair Costs
o Warranty Claims
o Customer Complaints
o Product or Material Returns
o Incorrect Sales Orders
o Incomplete BOMs
o Shipping Damage due to Inadequate Packaging
 These four categories can now be applied to the original Cost of Quality equation. Our original
equation stated that the Cost of Quality is the sum of Cost of Good Quality and Cost of Poor Quality.
This is still true however the basic equation can be expanded by applying the categories within both the
Cost of Good Quality and the Cost of Poor Quality.

• The Cost of Good Quality is the sum of Prevention Cost and Appraisal Cost (CoGQ = PC + AC)
• The Cost of Poor Quality is the sum of Internal and External Failure Costs (CoPQ = IFC + EFC)

By combining the equations, Cost of Quality can be more accurately defined, as shown in the
equation below:
COQ = (PC + AC) + (IFC + EFC)
One important factor to note is that the Cost of Quality equation is nonlinear. Investing in the
Cost of Good Quality does not necessarily mean that the overall Cost of Quality will increase. In fact,
when the resources are invested in the right areas, the Cost of Quality should decrease. When failures
are prevented / detected prior to leaving the facility and reaching the customer, Cost of Poor Quality
will be reduced.

Cost of Quality or Quality Costs Prevention costs are the cost incurred by an organization in
implementing a Quality Management System. They include costs such as hiring an outside consultant,
providing training to employees, creating the infrastructure for calibration, inspection and testing, etc.
 UNIT – II
PRINCIPLES AND PHILOSOPHIES OF QUALITY MANAGEMENT
Deming’s Theory is a management philosophy based on systems theory, originally
prototyped for use in the automotive industry with Toyota. It turned out that this systems-
focused improvement framework translated well to many other industries, including
healthcare.
According to The W. Edwards Deming Institute, Deming’s Theory is a system-
based management philosophy framework that “represents a holistic approach to
leadership and management.” Deming outlined what he found to be the managerial
changes necessary to improve quality. These changes are illustrated through four main
areas as well as a list of 14 principles intended to guide improvement in organizational
structure and behavior.
In short, when executed, the framework creates continuous improvement in people
and organizations. It gives leaders a roadmap for how to work with teams and
organizations as systems, rather than focusing on problems with or actions of the
individual people working within silos.
Deming’s Theory informs that there is always a solution within the workings of the
system. For example, to reprimand a person for a mistake without fixing the system error
that allowed the mistake to be made in the first place is an unsustainable business model.
The focus should be on system improvement, process improvement, and on the
organization working as a whole organism.
And to keep these systems and processes in place and ensure they’re followed?
That takes management. Deming’s Theory takes the idea of managing people and
expands it to the idea of managing a larger system, where every piece affects the other,
and interrelated parts are viewed as a comprehensive whole.
In a paper published in the Journal of Applied Behavior Analysis (Donald A.
Hantula, Volume 28, Issue 3, Fall 1995), research revealed that optimizing a system as a
whole and using systems-level problem solving and interventions led to a significant
improvement over individual-level problem solving. “It is contended that up to 85% of
the variability in work performance is due to the system; and 15% is due to the
individual.” (Deming, 1982; Rummler & Brache, 1990)
85% is a significant percentage; enough so to reveal that Deming was on to
something that could be applied cross-industry. Could it be that using systems-level
problem-solving in the healthcare setting would lead to the same reduction in variability
in work performance, and in turn, higher success rates and better-quality care.
Deming’s Theory for Total Quality Management

Back to Deming’s Theory as a way to illustrate the possible benefits of

implementing his principles to the healthcare industry. Deming’s Theory is explained via
four main parts and 14 principles called the 14 points for total quality management.
Let’s first take a look at the four main parts of the theory. Each part relates to one
or more of the 14 points, explained further below.
DEMING’S THEORY: FOUR MAIN PARTS
1. Appreciation for a system. A system cannot be improved or managed by
anyone who does not understand the system. A leader must understand all parts and
optimize the system as a whole.
2. Knowledge about variation. Mishaps or causes for variation are as a result of
the system and systematic processes, and not a result of people or individuals.
Knowledge about variation transfers blame away from the person and looks instead at the
system to identify flaws in workflow, training, or improvement opportunities.
3. Theory of knowledge. Knowledge, information, and experience work
together—knowledge does not mean simply copying provided examples. Leadership and
training must be instituted, and continuous thinking, question-asking, and solution
development lead to improvement. The PDSA cycle, also created by Deming, is an
example of this theory.
The PDSA (Plan, Do, Study, Act) cycles theory is a framework for rapid-testing
change on a small scale.
DEMING’S THEORY: 14 POINTS FOR MANAGEMENT
The four main points above relate to the list of principles that Deming called the 14
Points for Total Quality Management in his book Out of the Crisis.
Deming’s 14 Points for Management illustrate the points that are to be followed by
managers in order to guide organizational practice and behavior. The 14 points in
summary are:

14 points from Deming’s book Out of the Crisis:

1. Create constancy of purpose toward improvement of product and service, with the
aim to become competitive and to stay in business, and to provide jobs.
2. Adopt the new philosophy. We are in a new economic age. Western management
must awaken to the challenge, must learn their responsibilities, and take on
leadership for change.
3. Cease dependence on inspection to achieve quality. Eliminate the need for
inspection on a mass basis by building quality into the product in the first place.
4. End the practice of awarding business on the basis of price tag. Instead, minimize
total cost. Move toward a single supplier for any one item, on a long-term
relationship of loyalty and trust.
5. Improve constantly and forever the system of production and service, to improve
quality and productivity, and thus constantly decrease costs.
6. Institute training on the job.
7. Institute leadership (see point 12 and Chapter 8 in Out of the Crisis). The aim of
supervision should be to help people and machines and gadgets to do a better job.
Supervision of management is in need of overhaul, as well as supervision of
production workers.
8. Drive out fear, so that everyone may work effectively for the company (see
Chapter 3).
9. Break down barriers between departments. People in research, design, sales, and
production must work as a team, to foresee problems of production and in use that
may be encountered with the product or service.
10.Eliminate slogans, exhortations, and targets for the workforce asking for zero
defects and new levels of productivity. Such exhortations only create adversarial
relationships, as the bulk of the causes of low quality and low productivity belong
to the system and thus lie beyond the power of the work force.
11.a. Eliminate work standards (quotas) on the factory floor. Substitute leadership.
b. Eliminate management by objective. Eliminate management by numbers,
numerical goals. Substitute leadership.
12.a. Remove barriers that rob the hourly worker of his right to pride of workmanship.
The responsibility of supervisors must be changed from sheer numbers to quality.
b. Remove barriers that rob people in management and in engineering of their right
to pride of workmanship. This means, inter alia, abolishment of the annual or merit
rating and of management by objective.
13.Institute a vigorous program of education and self-improvement.
14.Put everybody in the company to work to accomplish the transformation. The
transformation is everybody’s job.
 JURAN’S STEPS FOR QUALITY IMPROVEMENT
Juran, like Deming, was invited to Japan in 1954 by the Union of Japanese Scientists
and Engineers (JUSE). His work pioneered the management dimensions of planning,
organizing, and controlling and focussed on the responsibility of management to achieve
quality and the need for setting goals.
Juran defines quality as fitness for use in terms of design, conformance, availability,
safety, and field use. His approach is based customer, top-down management and
technical methods.
The Juran Trilogy is an improvement cycle that is meant to reduce the cost of poor
quality by planning quality into the product / process.
1. Quality Planning:
In the planning stage, it is critical to define who the customers are and to
define their needs (voice of the customer). Once the customer needs are identified,
define the requirements for the product / process / service / system, etc., and
develop them for operations along with the respective stakeholder expectations.
Planning activities are done through a multidisciplinary team, with the involvement
of key stakeholders.
2. Quality Control:
During the control phase, determine what needs to be measured (what forms of
data and from which processes?), and set a goal for performance. Obtain feedback
by measuring actual performance, and act on the gap between performance and the
goal. In Statistical Process Control (SPC), there are several tools that could be used
in the control phase of the Juran Trilogy: such as the 7 QC tools and other
statistical process control methods.
3. Quality Improvement:
There are four different strategies to improvement that could be applied for
improvements:
• Repair: reactive approach - fix what is broken
• Refinement: proactive approach - continually improve a process that isn’t
broken
• Renovation: improvement through innovation or technological advancement
• Reinvention: most demanding approach – abandon the current practices and
start over with a clean slate.
Quality improvement can be an arduous journey for organizations, as they are
up against various constraints that include customer / stakeholder expectations and
interests, some of which could be inherently conflicting.
Juran advocated a ten-step process for quality improvement programmes.
1. Build awareness of need and opportunity for improvement
• Survey the employees / personnel, find why errors / mistakes / deviations are
made
 • After a week, select the top ten reasons
• Decide how to make sure those mistake-causing steps aren't repeated
• Keep track of the number of mistakes being made, make sure they are
decreasing
2. Set goals for improvement
• Establish specific goals to be reached
• Establish plans for reaching the goals
• Assign clear responsibility for meeting the goals
• Base the rewards on results achieved
3. Organize to reach the goals
• Establish quality councils
• Identify problems
• Select projects
• Appoint teams
• Designate facilitators
4. Provide training
• Investment in education and training will fetch rewards
5. Carry out projects to solve problems
• Large, break-through improvements through interdepartmental or even
cross-functional teams
• Tackle the chronic problems for break-through improvements
• Vital few problems create the breakthroughs
6. Report progress
• Progress expected and the actual progress achieved
• Act to improve the operational status to reduce variance
 • Information on progress provides confidence on quality improvement
projects
7. Give recognition
• Morale booster
8. Communicate results
• Lesson learnt
• Awareness of the approach taken, possibility to learn and improve further
• Improvement outlook for people in other areas, to emulate success
9. Keep score
• Track progress
• Report achievements, short-falls
10.Maintain momentum by making annual improvement part of the regular processes
• People oriented
• Team-work
Juran’s steps for improvements in quality have been widely accepted, practiced
and evolved over time to suit different organizations and segments.
MASAAKI IMAI:
Masaaki Imai is a Japanese management consultant, known for his work on
quality management, specifically on Kaizen.
In the late 1950’s, Imai worked for five years in Washington DC at the Japanese
Productivity Center, where he was responsible to accompany groups of Japanese
businessmen on visits to American plants.
In 1986, he founded the Kaizen Institute Consulting Group (KICG) to help
western companies to introduce the concepts, systems and tools of Kaizen.
His first book, Kaizen: The Key to Japan’s Competitive Success, helped
popularize the Kaizen concept in the West.
 From “Kaizen” book, showing comparison of PDCA and SDCA
Masaaki Imai is a prominent figure in the field of Total Quality Management
(TQM) and is often credited with popularizing the concept, particularly in the
context of Japanese manufacturing. His book, "Kaizen: The Key to Japan's
Competitive Success," emphasizes continuous improvement (kaizen) as a core
principle of TQM.
Imai advocates for a holistic approach to quality management that involves
everyone in the organization, from top management to front-line employees. Key
elements of TQM as presented by Imai include:
1. Customer Focus: Prioritizing customer needs and satisfaction.
2. Continuous Improvement: Encouraging ongoing improvements in processes,
products, and services.
3. Employee Involvement: Engaging all employees in quality initiatives and
fostering a culture of teamwork.
4. Process Orientation: Focusing on processes rather than just outcomes to ensure
consistent quality.
5. Data-Driven Decision Making: Using data to inform decisions and measure
progress.
 Imai's work has had a significant influence on both Japanese and global
management practices, promoting a shift towards quality and efficiency in various
industries.
FEIGENBAUM
Dr. Armand Vallin Feigenbaum (1922-2014)

Dr. Armand Vallin Feigenbaum was an American-born quality expert. He devised

the concept of Total Quality Control, later coined as Total Quality Management
(TQM) (Feigenbaum Foundation, 2016).
TQM is an extensive, company-wide quality improvement program. It gets
everyone involved in developing an agreed-on company-wide and plant-wide work
structure documented ineffective, integrated technical and managerial procedures. The
integration provides coordination to the actions of the workforce, machines, and
information of the company in the most practical ways, ensuring customer quality
satisfaction and economic costs of quality. To learn more about Feigenbaum, visit
the Feigenbaum Foundation.
Often a company quality control department only focuses on production. However,
Feigenbaum realized that the customer might have a problem not only with the product
but also with the call center, shipping, or records. TQM is a consumer-based
improvement system, and all the workers need to participate and educated. He identified
10 product and service conditions that must be met or considered to satisfy customer
requirements. The aim of these requirements is that quality establishes the proper balance
between the cost of the product or service, and the ‘customer value' it renders (including
safety).
Feigenbaum's 10 Product and Service Considerations
1. Specification of dimensions and operating characteristics.
2. Life and reliability objectives.
 3. Safety requirements.
4. Relevant standards.
5. Engineering, manufacturing, and quality costs.
6. Production conditions under which the product is manufactured.
7. Field installation, maintenance, and service objectives.
8. Energy utilization and material conservation factors.
9. Environmental and other side effects considerations.
10.The cost of customer operation and use and product service.
Today quality involves a total company commitment to quality. The TQM
approach states that every employee in the business is responsible for quality. Note that
this is distinct from the old model of an adversarial relationship between labor and
management and closer to the model of labor-management cooperation. “Total Quality
Management (TQM) is a management approach that places emphasis on continuous
process and system improvement as a means of achieving customer satisfaction to ensure
long-term company success.” (Summers, 2010)
TQM is not a temporary fix or used for short-term problem-solving. A long-term,
deeply committed management style is dedicated to the improvement of the process of an
unwavering commitment to meeting the customers' needs. Since their needs are
explore TQM as well as other management styles to help meet customer
continually changing, TQM must also be amenable to change. Later assignments
will
ISHIKAWA TQM
Ishikawa is best known for:
Ishikawa Diagram - Also known as Cause-and-effect Diagram or Fishbone
Diagram.
Seven Basic Quality Tools - Seven Basic Quality Tools were first emphasized by
Ishikawa.
Quality Circles - Ishikawa introduced the concept of Quality Circles. This is an
essential part of Total Quality Management (TQM).
Company-wide Quality - Ishikawa believed that quality must be company-wide.
 Ishikawa Diagram
The Ishikawa Diagram is also called the Fishbone diagram and the Cause-and-
Effect-Analysis. This is the most commonly used to analyze a problem and to find out the
potential causes creating the problem.
Ishikawa Diagram is one of the Seven Basic Quality Tools promoted by Ishikawa.
Seven Basic Quality Tools:
1. Flow charts (At some places, this tool is replaced by Stratification or Run Chart)
2. Scatter diagrams
3. Pareto Charts
4. Histogram
5. Check sheets
6. Cause and Effect Diagram
7. Control charts

Quality Circles
Quality Circle is a small group of employees working in the same area or doing
the same job. This group regularly meets for one hour every week to identify and
collectively resolve the problems in the work area. They use Seven Basic Quality tools to
understand the causes and propose solution
CONTRIBUTIONS OF ISHIKAWA TO TQM INCLUDE:
1. Quality Circles: Ishikawa advocated for small groups of workers who meet
regularly to discuss workplace improvement, quality issues, and solutions,
empowering employees at all levels.
2. Customer Focus: He emphasized the importance of understanding customer needs
and aligning processes to meet those needs effectively.
3. Education and Training: Ishikawa stressed the need for continuous training in
quality management principles for all employees, ensuring that everyone
understands their role in maintaining quality.
 4. Management Involvement: He highlighted that effective quality management
requires commitment from top management, promoting a culture where quality is a
shared responsibility.
5. Holistic Approach: Ishikawa promoted the idea that quality management should
integrate all aspects of an organization, from production to customer service.
His teachings have significantly influenced quality management practices
worldwide, making TQM a fundamental aspect of organizational success

TAGUCHI TECHNIQUES:

The Taguchi method is a quality control strategy that aims to reduce product
defects and malfunctions by identifying and eliminating sources of variation. It was
developed by Japanese engineer and statistician Genichi Taguchi.
The Taguchi method is based on the following principles:

• Quality is loss
Quality is measured by the loss to society caused by a product's deviations and side
effects.
• Design is more important than manufacturing
Design is considered more important than manufacturing in quality assurance.
• Losses increase with deviation
Losses increase as a product deviates from its target value, even if it's still within
specifications.
 • Isolate noise at the source
External factors, or "noise", in the production process can cause quality to decline,
even if production is within tolerance levels.
The Taguchi method involves the following steps:
1. Plan: Identify factors that affect product quality, such as materials, parameters,
settings, or environmental conditions.
2. Conduct: Test various factor combinations using an orthogonal array.
3. Analyze: Apply statistical methods to analyze the results and identify optimal
factor levels.
The Taguchi method also involves distinguishing between three types of factors
that control processes and products:
• Signal factors: Factors that control the process or product.
• Control factors: Factors that produce a response based on the noise in a process.
• Noise factors: Factors that cause random variation in a process or product.

What Is the Taguchi Method of Quality Control?

The Taguchi method of quality control is an approach to engineering that
emphasizes the roles of research and development (R&D), and product design
and development in reducing the occurrence of defects and failures in
manufactured goods.
Example of the Taguchi Method of Quality Control
 If the product is a precision drill that must consistently drill holes of an exact
size in all materials it is used on, then part of its quality is determined by how much the
units of the product differ from those standards. With the Taguchi method of quality
control, the focus is to use research and design to ensure that every unit of the product
will closely match those design specifications and perform exactly as designed.
PARAMETER AND TOLERANCE DESIGN
Parameter design aims to determine the optimal settings for product or process
parameters to improve robustness and reduce costs. Tolerance design then works to
tighten tolerances around the optimal settings to make the design less sensitive to noise
factors
Parameter Design - Parameter design is a process that seeks to set main factors so
as to achieve a response objective (Maximum, Minimum, Target) while at the same time
allowing subsidiary factors to vary in a "customary" way

In Total Quality Management (TQM), parameter and tolerance design

are processes used to improve product quality through experiments:
• Parameter design
Determines the settings for design parameters to optimize performance and
reduce sensitivity to variation. This involves using experiments to find the best
level for each system parameter, like dimensions or material types.
 • Tolerance design
Determines the tolerances around the nominal settings identified in
parameter design. This involves using experiments to set the allowable ranges for
deviations in parameter values.
The goal of these processes is to design a product that is robust and immune
to uncontrollable environmental factors. The Taguchi method is based on the idea
that quality should be designed into a product, rather than inspected into it.
Here are some tips for parameter and tolerance design:
• Use orthogonal arrays and signal to noise ratio
These tools can help with parameter design.
• Consider the cost
Tolerance design typically increases product cost, but you can minimize the
cost by finding tolerances that don't adversely affect quality.
• Integrate parameter and tolerance design
A traditional two-stage approach can be time-consuming, and the tolerance
levels determined in the tolerance design stage can affect quality loss.
• Learn more
You can learn more about DOE tools for designed experiments from Six
Sigma Demystified by Paul Keller, or from online short courses and certification
training.
SIGNAL TO NOISE RATIO.
The ratio is typically expressed as a single numeric value in decibels (dB). The
ratio can be zero, a positive number or a negative number. A signal-to-noise ratio over 0
dB indicates that the signal level is greater than the noise level. The higher the ratio, the
better the signal quality.
Although the definitions of signal and noise are simple, when it comes to real
design, it isn’t always easy to tell the difference. Not every user will have the same goal,
so exactly what counts as “signal” and “noise” will vary. One person’s signal could be
noise to another. Therefore, the signal–to–noise ratio of your UI could be higher
or lower depending on who’slooking at it, and what that person is trying to do.

The signal-to-noise (S/N) ratio is a key parameter in the Taguchi method, a

statistical technique used to optimize product design and manufacturing processes. The
S/N ratio is a measure of a product or service's quality by comparing the desired signal
with the noise or unwanted variation in the output.
Taguchi ratio Formula

Smaller is better S/N ratio = -10 log [SUM(y)/n]

Larger is better S/N ratio = -10 log [SUM(1/y)/n]

Nominal is best S/N ratio = 10 log [SUM(y)/s]

The S/N ratio increases as the variability of the response decreases relative to the
average response. The S/N ratio is a log function of the desired output and can be used
for data analysis and prediction of optimum results.
The S/N ratio can be calculated using a fixed formula, depending on how the signal
and noise levels are measured. For example, if the levels are measured in microvolts, the
formula is S/N = 20 log(P/P), where P is the signal in microvolts and P is the noise in
microvolts.
CONCEPTS OF QUALITY CIRCLE

A Quality circle is a small group of employees who meet regularly to identify,

analyze, and solve problems related to their work. Quality circles are a key component of
Total Quality Management (TQM) and are intended to improve organizational processes
by using the collective knowledge of employees.
The Quality circle process in Total Quality Management (TQM) involves a
structured approach where a small group of employees voluntarily come together to
identify, analyze, and solve quality-related problems within an organization.

CHARACTERISTICS OF QUALITY CIRCLES:

• Membership
Quality circles are made up of 3–12 employees from different levels of the
organization. Membership is voluntary.
• Leadership
A supervisor or manager usually leads the group.
• Meetings
Quality circles meet regularly at scheduled times and days. The length of each
meeting depends on the problem being discussed.
• Process
The process for a quality circle typically includes:
• Identifying problems
 • Collecting and analyzing data
• Generating solutions
• Implementing solutions
• Reviewing and standardizing solutions
• Documentation
Minutes are taken to document discussions and record problems and solutions.
Quality circles originated in post-World War II Japan and were influenced by the
work of W. Edwards Deming and Kaoru Ishikawa. They were most popular in the 1980s,
but continue to be used in some form today as Kaizen groups and other worker
participation schemes.

Quality circles can help you achieve several benefits that align with the principles
and goals of TQM, such as increased employee involvement and empowerment,
improved problem-solving and decision-making skills, enhanced customer satisfaction
and loyalty, and reduced costs and waste.
OBJECTIVES OF QUALITY CIRCLE
The main objectives of quality circle are:
1. Skill Development: Quality Circles result in the skill enhancement of the
members by engaging them in problem-solving, team building, and open communication.
2. Quality Improvement: The quality circle aims to improve the quality by
working on good communication skills, promoting problem-solving techniques, and
using standardisation for continuous improvement.
3. Employee Satisfaction: Satisfied employees create a happy work environment.
To satisfy them, recognition technique such as quality circles can be used. It gives the
employees a sense of achievement which promotes job satisfaction, enthusiasm, and
motivation.
4. Relationship Management: Quality Circles aim to maintain good relations
between the employees and managers and to create cordial working relations.
5. Cost Reduction: Quality Circles work on improving the product's quality and
reducing the per-unit cost of the output.
6. Achievement of Objectives: The main aim of the quality circle is usually
aligned with the broader objectives of organisation. Their efforts collectively contribute
to promoting competitiveness and organisational success.
JAPANESE 5S PRINCIPLES AND 8D METHODOLOGY.
Origin of the term, KAIZEN is a Japanese word implying "Change for the better" or
"Improvement". In management, it, generally, means "continuous cost reduction" and "improving
quality and safety" by reducing delivery time. As mentioned above,
KAIZEN is a team-based improvement activity, in which every process can and should be
continually monitored and improved. Nobody knows everything but everybody knows something. So
working together minimizes the weakness of individual and enhances the strength of each individual as
well as the team.
If KAIZEN is applied to a workplace, the activity on site comes to be a process for continuous
improvement involving everyone regardless the difference in position or rank, manager or worker.
KAIZEN is originated in manufacturing sector but now not limited to manufacturing systems
only. It can be applied to service industry including health care.
5S is the principles of work environment improvement derived from the Japanese words seiri,
seiton, seiso, seiketsu, and shitsuke. In English the five Ss are respectively described Sort, Set Shine,
Standardize, and Sustain.
………………………………………………………………………………………………
1 - Sort: Remove unused items from your venue of work; and reduce clutter
(Removal / organization)
2 - Set: Organize everything needed in proper order for easy operation
(Orderliness)
3 - Shine: Maintain high standard of cleanness
(Cleanness)
4 - Standardize: Set up the above three Ss as norms in every section of your place
(Standardize)
5 - Sustain: Train and maintain discipline of the personnel engaged.
(Self-Discipline)

……………………………………………………………………………………
 The Japanese 5S principles and 8D methodology are both methods to improve
processes, quality, and productivity:
• 5S principles
A set of five steps to improve the work environment and create high-quality
processes:
• Sort: Remove items that aren't needed immediately
• Set in order: Organize tools and equipment for efficiency
• Shine: Clean the work environment
• Standardize: Document the actions taken in the previous steps
• Sustain: Ensure the practices are maintained
 8D methodology
A problem-solving strategy that involves eight steps to identify and fix problems in
a product, process, or service:
• Plan
• Use a team
• Define the problem
• Develop interim containment
• Determine root causes
• Choose permanent corrections
• Implement corrective actions
• Take preventive measures

5S is often the first lean method that organizations implement. It can help to reduce
waste, unplanned downtime, and in-process inventory. 8D was popularized by Ford
Motor Company in the automotive industry, but is now used by many organizations
around the world.
BENEFITS OF 5S:
• Improved productivity: Employees can find tools and materials more quickly,
which reduces time spent searching.
• Efficient use of space: Flexible workstations can be designed to make the most of
available space.
• Employee involvement: Employees can be involved in designing and customizing
their own workspaces.
To ensure that 5S activities are consistently performed, companies may use
checklists. It's also important to make new employees and employees who are transferred
aware of the 5S program.
UNIT - III
STATISTICAL PROCESS CONTROL AND PROCESS CAPABILITY
Statistical Process Control (SPC) is a set of statistical techniques used to monitor
and regulate production processes, while process capability is a measure of how well a
process can produce output that meets customer specifications:
• Statistical Process Control (SPC)
Uses statistical techniques to analyze data in real time to identify and correct
deviations in production processes. SPC can help manufacturers maintain high-quality
standards, reduce defects, and improve production efficiency.
• Process capability
A measure of how well a process can produce output that meets customer
specifications. Process capability is often measured using the Cpk index, which compares
in-control process output to specification limits.
some other things to know about SPC and process capability:
• Control charts: A tool used in SPC to visualize data trends and distinguish
between normal and abnormal variation.
• Special and common cause variation: SPC can help differentiate between these
two types of process variation.
• PDCA cycle: A continuous process that involves four steps: Plan, Do, Check, and
Act.
 • Cp: A measure of a process's potential to produce output within specification
limits, but it doesn't take into account the process's centering.
SIGNIFICANCE OF STATISTICAL PROCESS CONTROL (SPC):
It's significant because it allows operators to identify and prevent defects before they
happen. SPC can help with many goals, including:
• Improving product quality: SPC can help reduce waste, defects, and rework. It can
also help align process capabilities with product needs.
• Increasing operational efficiency: SPC can help reduce the need for manual
inspections and increase productivity.
• Controlling costs: SPC can help reduce warranty claims and control production
costs.
• Maintaining compliance: SPC can help ensure compliance with regulatory and
customer requirements.
• Making real-time decisions: SPC can help operators react to process changes and
make decisions on the shop floor.
A popular SPC tool is the control chart, which helps operators record data and identify
unusual events. Control charts plot data in time order, and can be analyzed daily, weekly,
monthly, or for any period that's appropriate.

SPC software is very helpful in reducing / controlling the manufacturing (or)

production costs. By keeping an eye on the quality of the products, defects are caught
before the products shipment (or) delivery of consignments. A best example of ineffective
SPC is car recalls.
CONSTRUCTION OF CONTROL CHARTS FOR VARIABLES AND
ATTRIBUTED.
What is a variables control chart?
Variables control charts plot continuous measurement process data, such as length
or pressure, in a time-ordered sequence. In contrast, attribute control charts plot count
data, such as the number of defects or defective units. Variables control charts, like all
control charts, help you identify causes of variation to investigate, so that you can adjust
your process without over-controlling it.
There are two main types of variables control charts: charts for data collected in
subgroups and charts for individual measurements.
CONTROL CHART
Also called: Shewhart chart, statistical process control chart
The control chart is a graph used to study how a process changes over time. Data
are plotted in time order. A control chart always has a central line for the average, an
upper line for the upper control limit, and a lower line for the lower control limit. These
lines are determined from historical data. By comparing current data to these lines, you
can draw conclusions about whether the process variation is consistent (in control) or is
unpredictable (out of control, affected by special causes of variation). This versatile data
collection and analysis tool can be used by a variety of industries and is considered one of
the seven basic quality tools.
Control charts for variable data are used in pairs. The top chart monitors the
average, or the centering of the distribution of data from the process. The bottom chart
monitors the range, or the width of the distribution. If your data were shots in target
practice, the average is where the shots are clustering, and the range is how tightly they
are clustered. Control charts for attribute data are used singly.
• When to use a control chart
• Basic procedure
When to Use a Control Chart
• When controlling ongoing processes by finding and correcting problems as they
occur
• When predicting the expected range of outcomes from a process
• When determining whether a process is stable (in statistical control)
• When analyzing patterns of process variation from special causes (non-routine
events) or common causes (built into the process)
• When determining whether your quality improvement project should aim to
prevent specific problems or to make fundamental changes to the process
Basic Procedure
1. Choose the appropriate control chart for your data.
2. Determine the appropriate time period for collecting and plotting data.
3. Collect data, construct your chart and analyze the data.
 4. Look for "out-of-control signals" on the control chart. When one is identified, mark
it on the chart and investigate the cause. Document how you investigated, what you
learned, the cause and how it was corrected.
How are control chart constructed:
The control chart is a graph used to study how a process changes over time. Data are
plotted in time order. A control chart always has a central line for the average, an upper
line for the upper control limit, and a lower line for the lower control limit. These lines
are determined from historical data.

Attribute data on a control chart is simply the count of products or characteristics of a

product that do not conform to some established criteria. The chart becomes a line graph
showing the variation in the quality of the process over a period of time. Control limits
are drawn on the control chart to aid in analyzing the variation of the process. When the
control chart shows variation due to common causes, the process is said to be in a state of
statistical control. If the data on the chart shows abnormal points or patterns, then the
process has changed due to assignable causes.
Types of Attribute Control Charts and Data
Attribute data is a count of nonconforming units (defective parts), or the number of
nonconformities on a unit (number of defects per part). Attribute data does not require
actual measurements such as length, width, or torque. It is only necessary to count the
number of defects or defective units. Many characteristics of quality can only be
measured in this way, such as the presence or absence of a required screw, or the number
of bad solder connections on a printed circuit board. Other attribute data may be the result
of data that is measurable but recorded as pass or fail, such as that from a GO/NO-GO
gauge.
 Control charts for attribute data have a number of advantages:
• Attribute data is easier to collect and, as a result, less costly to
acquire. Inspection skills are not complicated, and gauges, if used, are simple
GO/NO-GO gauges. In some cases, the data is already available from past
inspection records. Large amounts of attribute data can frequently be collected at
one inspection station.

• Attribute data can be collected from any type of process. Output from any
process can be qualified as conforming or nonconforming.
• Several types of defects can be grouped on one chart. For complex assemblies,
it would be very impractical to require a separate control chart for each measured
characteristic. Attribute charts in this case can indicate problem areas and suggest
where more detailed variables control charts may be needed.
• Attribute data is easy to understand by all personnel. Control charts for
attributes are easier to construct and understand.
• Attribute control charts provide an overall picture of the quality of a process
and provide useful quality history.
•

There are also some disadvantages:

• An attribute chart does not always provide detailed data for the analysis of
individual characteristics. For attribute charts, a part is defective if it has one
defective characteristic or many defective characteristics.
• Attribute data does not indicate different degrees of defectiveness. A
nonconforming item may be very defective or slightly defective.
• Because of the above disadvantages of attribute data, control charts for
attribute data are less sensitive in indicating changes in the process. The charts
for attributes also only indicate when a change in the process occurred, and offer
little information as to why the change occurred.
How Control Chart Types are Defined
Control chart types are defined by the type of data being charted. There are four
types of control charts for attributes. See Table 3.3.1. Control charts that are for the count
of nonconforming units are called p-charts and np-charts. A unit is nonconforming if it
has one or more defects. If the data is in subgroups of varying sizes then the p-chart is
used. If the data is collected in subgroups of constant size, then the chart used is an np-
chart. Control charts that count individual nonconformities or defects on a product are c-
charts and u-charts. The c-chart involves subgroups of constant size, and a u-chart has
subgroups that are not of constant size.

Elements of a Control Chart for Attributes

Elements of a Control Chart for Attributes A control chart is a two-dimensional line
graph (Figure 3.3.1). The plotted points represent the given measure of the quality of the
process from the data collected at predetermined periods of time. The horizontal axis is
divided into rational groups (also called subgroups) — hour to hour, day to day, a lot to
lot, etc. The vertical scale represents the quantity or percentage of defects per unit or
defective units. Three control lines are also drawn horizontally on the control chart — a
centerline, upper control limit line, and lower control limit line. The centerline is the
average of the number of defects or defective units in the process for the total period of
the process being charted. The data used to calculate control limits is also used to
calculate the centerline.

Why the Control Limits are the Key to Control Charts

 The control limits are the key to control charts. The control limits are the criteria for
analyzing a process for statistical control. Control charts use standard deviation as a
measure of variation. The upper control limit is drawn at the centerline plus 3 sigma. The
lower control limit is drawn at the centerline minus 3 sigma. The choice of 3 sigma is
somewhat arbitrary but has become fairly standard in the U.S.
How the 3-sigma Limits Were Calculated
The calculation of the 3-sigma limits on control charts for attributes is different from
that of control charts for variables. For variables, it is based on the normal distribution.
However, for p-charts and np-charts, it is based on the binomial distribution. For c-charts
and u-charts, it is based on Poisson distribution. When based on the binomial distribution,
it is assumed that the possibility of a unit being defective is the same from unit to unit and
independent from unit to unit.
Each unit has the same chance of being good or bad, just as in flipping a coin. When
based on the Poisson distribution, it is assumed that the possibility for defects occurring
on a unit is great, but the chances of getting a defect at any one spot is small. Although
these distributions differ from the normal distribution, the probabilities of a point falling
outside the 3 sigma control limits on a control chart for attributes is on the same order of
magnitude as on a control chart for variables. When only common cause variation is
present on a control chart for attributes, the chance of a point being above the upper
control limit or below the lower control limit is less than 1%.
Application and Construction of Control Charts for Attributes
The following steps describe how to use a control chart for attributes:
1) Select the area or process to be charted
Give high priority to areas where problems are already occurring. Choose characteristics that will
provide the type of data needed for finding the problem.
2) Decide which attribute chart to use
This will depend on the type of data that already may be available or the type of data that is desired.
3) Select the frequency of sampling
In other words, define the subgroups. The subgroup periods may be equal periods of production
(hourly, daily, weekly). The periods may also correspond to equal quantities of production (lots,
batches). The periods should be chosen to make it easy to find and correct problems. Shorter periods will
give faster feedback on problems. It is important that the subgroups be chosen to ensure minimum
variation within a subgroup. This will allow variation to show up on the chart from subgroup to
subgroup.
 4) Select the subgroup size
The subgroup size should be large enough to ensure that the subgroup has a strong probability of
having some nonconformities. Small subgroup sizes tend to result in control limits being wide and are
less accurate in depicting an out-of-control process. The most effective subgroup size for p-charts and
np-charts is greater than 50. For the most effective c and u-charts, the subgroup size should be at least 1
but is better at 5 to 10.
5) Gather the data
Samples within a subgroup should be collected randomly so each item being inspected has an equal
chance of having nonconformities.
6) Construct the chart
carefully to make the chart too tall vertically. Plot the data. Calculate and draw the control lines.
Frequently, the value for the lower control limit will be negative for an attribute control chart. In this
case, there is no lower control limit. At least 20 to 25 subgroup points should be plotted before control
limits are calculated.
7) Analyze the chart for evidence of the process being out of control
Plotted points indicating a lack of control should be marked and investigated. These special causes
should be corrected and prevented from recurring.
8) Eliminate causes and recalculate the chart
Once the causes of out-of-control points are corrected, the control limits should be recalculated,
excluding those out-of-control subgroups. The chart then should be re-evaluated with the new limits to
look for more out-of-control conditions.
9) Extend control limits
When the process is deemed to be in control, the control limits can be extended forward in time on
the chart. Future data can then be plotted on the chart to continue evaluating the process for evidence of
the process going out of statistical control. As a process continues to improve, the old control limits may
be too wide to gain any further improvement in quality. In this case, it may be desirable to recalculate
the control limits using only the most recent data. Quality is improving when the control limits can be
made narrower.
PROCESS CAPABILITY
Meaning of Process capability:
Process capability is defined as a statistical measure of the inherent process variability of a given
characteristic. You can use a process-capability study to assess the ability of a process to meet
specifications.
Process capability is a statistical measurement that determines how well a process meets its
specifications and targets. It's a key concept in integrated quality management systems (TQM).
Process capability is the ability of a process to meet customer requirements and expectations. It is a
quality control measure and can be determined using three primary tools: specification limits, statistical
process control (SPC) tools such as X-bar and R charts, and calculation of Cp and Cpk values.
About process capability:
Process Capability (Cp and Cpk) and Process Performance (Pp and Ppk) are statistical
measurements used to assess the ability of a process to consistently produce output within specifications.
 • What it measures
Process capability measures the variability of a process's output and compares it to a
product tolerance or specification. It also considers the accuracy and precision of the
process.
• How it's expressed
Process capability is usually a number between -1 and 1, with higher numbers
indicating greater consistency and repeatability. A process with a capability of zero is
unable to produce output within the specified limits.
• How it's calculated
Process capability is calculated using measures like Cp, Cpk, Pp, and Ppk. Cp
measures the potential of a process to produce output within specifications, while Cpk
measures the actual capability during production.
• What it's used for
Process capability analysis helps businesses determine if their processes can be
improved and how well they meet specifications. It can also help businesses compare
their processes to those of other companies.
• Benefits
Processes with high levels of process capability can lead to cost reductions,
operational efficiency, and reduced risk.
PROCESS CAPABILITY ANALYSIS IN DETAILED
How to calculate process capability analysis
Calculating process capability analysis is a valuable tool for any organization wanting
to ensure its production process is running smoothly and efficiently. The first step in
calculating process capability is determining the upper and lower specification limits for
the product being produced. This establishes the acceptable target range for the process
output. Next, calculate the short-term variability with statistical process control tools such
as X-bar and R charts.
With these data points, one can better understand how much variation there is in the
production process when monitored over time – and where improvements can be made to
help bring about superior performance in meeting customer demands. Finally, look at Cp
and Cpk values which will deliver insight into the comparison of actual versus intended
performance levels of the process as well as help you get an idea of how much potential
improvement still exists. These capabilities are key to driving success long-term and
creating a process of continuous improvement over time.

Calculating Process Capability Index (Cp)

The process capability index, Cp, measures the potential capability of a process to
produce output within specified limits. It is calculated using the formula:
[ Cp = \frac{Upper\ Specification\ Limit – Lower\ Specification\ Limit}{6 \times
Process\ Standard\ Deviation} ]
A higher Cp value indicates a more capable process. However, it’s important to note
that Cp does not account for the centering of the process. This means that while a high Cp
value suggests a process can produce within specification limits, it doesn’t guarantee that
the process is centered around the target value.
Calculating Process Capability Index (Cpk)
The process capability index, Cpk, provides a more comprehensive measure by
considering both the process spread and its centering. The formula for Cpk is:
[ Cpk = \min \left( \frac{Upper\ Specification\ Limit – Process\ Mean}{3 \times
Process\ Standard\ Deviation}, \frac{Process\ Mean – Lower\ Specification\ Limit}{3
\times Process\ Standard\ Deviation} \right) ]
A higher Cpk value indicates a process that is not only capable but also well-centered
within the specification limits. This makes Cpk a more reliable indicator of a process’s
actual performance in meeting customer requirements.
Interpreting Process Capability Results
Interpreting process capability results is essential for driving process
improvement and ensuring products meet customer specifications. Here are some general
guidelines:
• A Cp value of 1.00 or greater indicates that the process is capable of producing
output within specified limits.
• A Cpk value of 1.00 or greater indicates that the process is both capable and
centered.
• A Cpk value less than 1.00 suggests that the process is not capable of producing
output within specified limits.
• A Cpk value between 1.00 and 1.33 indicates that the process is barely capable,
while a value greater than 1.33 signifies a capable process.
By understanding these values, organizations can pinpoint areas needing improvement
and take targeted actions to enhance process performance.
Some real-world examples of process capability study in action
Process capability can be seen in any number of activities in the real world. Whether
it’s software development, a well-defined manufacturing process, or customer service,
having a clear understanding of process capability is essential for success. In software
development, a focus on developing in smaller chunks and then testing and iterating can
help reduce the need to do major refactoring down the line. In manufacturing,
understanding variations in material supply and demand helps manufacturers run
processes more efficiently and with fewer errors.
Similarly, customer service operations often benefit from analytics that inform better
decision-making about how best to utilize resources and respond to customer inquiries
quickly. Ultimately, having good process capability means being able to think ahead
rather than reacting once problems arise – an invaluable skill for success in any endeavor.
Tips for improving your own process capability indices
Improving your own process capability scores can be a challenging task, but
understanding your process’s ability to meet specific customer specifications can make it
more manageable. However, it doesn’t have to be daunting! A few tips to start with
include analyzing existing processes thoroughly using control charts, identifying
underlying causes of variability, and responding to identified issues quickly and
effectively. Taking on small projects regularly can also help you build up your expertise
in this field, giving you more confidence that you’re following the correct procedures.
This will lead to measurable improvements in your ability to meet customer
requirements. Lastly, listening to customer feedback and understanding their needs can
help you recognize changes that should be made over time to make sure your process is
running as efficiently as possible. All these pieces of advice work together to make sure
that improving your own process capability score becomes easier than ever.
Setting Process Capability Goals
Setting process capability goals is vital for continuous process improvement and
ensuring products meet customer specifications. Here are some guidelines for setting
effective goals:
• Aim for a minimum Cp value of 1.00 to ensure the process can produce output
within specified limits.
• Set a minimum Cpk value of 1.33 to ensure the process is both capable and
centered.
• Target a Cpk value of 2.00 or higher to achieve a highly capable and centered
process.
• Regularly review and update process capability goals to keep them relevant and
achievable.
By understanding process capability indices, calculating Cp and Cpk, interpreting
results, and setting appropriate goals, organizations can ensure their processes
consistently produce high-quality products that meet customer expectations.
SIX SIGMA
The term "Six Sigma" refers to a statistical measure of how far a process deviates
from perfection. A process that operates at six sigma has a failure rate of only 0.00034%,
which means it produces virtually no defects.
A set of management techniques intended to improve business processes by greatly
reducing the probability that an error or defect will occur.
“The company has long used Six Sigma to analyse its manufacturing processes”.
 Origin

1980s: from the statistical term for six standard deviations (see sigma), a key
measure for this method of quality control.
Six Sigma (6σ) is a set of techniques and tools for process improvement. It was
introduced by American engineer Bill Smith while working at Motorola in 1986

What Is Six Sigma (6 sigma) ?

 Lean Manufacturing & Six Sigma Worldwide
Six Sigma is a highly disciplined and data-driven approach to process
improvement and quality management.
It was originally developed by Motorola in the mid-1980s and popularized
by companies like General Electric (GE) in the 1990s.
The term "Six Sigma" refers to a statistical measure of how far a process
deviates from perfection. The goal of Six Sigma is to reduce process variation and
defects to achieve near-perfect quality levels. The core principle of Six Sigma is to
identify and eliminate defects in processes, products, or services by using statistical
analysis and data-driven decision-making. The methodology follows a structured
problem-solving approach called DMAIC, which stands for:
1. Define: Clearly define the problem or the project goals. Understand the customer
requirements and expectations.
2. Measure: Collect data and measure the current performance of the process. Identify
key metrics and process capabilities.
3. Analyze: Analyze the data to identify the root causes of defects and process
variations. Use statistical tools to understand the sources of the problem.
4. Improve: Develop and implement solutions to address the identified root causes.
Optimize the process to meet customer requirements.
5. Control: Establish control mechanisms to sustain the improvements and monitor
the process to prevent future defects.
6. The application of Six Sigma can benefit various industries and organizations,
including manufacturing, services, healthcare, finance, and more.
 The application of Six Sigma can benefit various industries and organizations,
including manufacturing, services, healthcare, finance, and more.

Principles of Six Sigma

The Five Key Principles of Six Sigma are the foundational elements that guide the
methodology's application and success. These principles form the basis of the Six Sigma
approach to process improvement and quality management. Here are the five key
principles of Six Sigma:
 1. Focus on the customer: Six Sigma places a strong emphasis on understanding
customer needs, expectations, and requirements. The ultimate goal of process
improvement is to deliver products or services that meet or exceed customer
expectations. Organizations should identify critical customer requirements and
align their processes to meet those requirements effectively.
2. Data-driven decision-making: Six Sigma relies heavily on data and statistical
analysis to drive decision-making. Data is used to measure the current performance
of processes, identify root causes of defects, and validate the effectiveness of
improvement efforts. Data-driven decision-making ensures that actions are based
on objective evidence rather than subjective opinions.
3. Process focus: Six Sigma views business processes as a series of interconnected
activities that ultimately deliver value to the customer. By understanding and
optimizing these processes, organizations can improve efficiency, reduce waste,
and deliver better-quality products or services.
4. Continuous improvement: The principle of continuous improvement is at the heart
of Six Sigma. Organizations are encouraged to view improvement as an ongoing
journey rather than a one-time effort. Through the DMAIC (Define, Measure,
Analyze, Improve, Control) approach, Six Sigma practitioners systematically work
on identifying and addressing issues to achieve sustainable results.
5. Collaboration and involvement: Six Sigma promotes a collaborative approach to
problem-solving. It involves cross-functional teams and encourages employees at
all levels to actively participate in improvement initiatives. Engaging employees in
the process not only enhances their problem-solving skills but also fosters a culture
of continuous improvement within the organization.

By adhering to these five key principles, organizations can effectively implement

Six Sigma and achieve significant improvements in process performance, customer
satisfaction, and overall business success.
Is it 6 Sigma (6σ) or 4.5 Sigma (4.5σ)?
The standard reference for Six Sigma is indeed 6 Sigma (6σ), not 4.5 Sigma (4.5σ). The term
"Six Sigma" specifically refers to a level of process performance that aims to achieve an extremely low
defect rate of 3.4 defects per million opportunities (DPMO). In statistical terms, it means that the
process has a capability of producing 99.99966% defect-free outputs.
 The concept of Six Sigma is centered around the idea of reducing process variation and defects
to achieve a high level of quality and efficiency. It uses statistical tools and methodologies to identify
and eliminate sources of variation in processes, thereby improving the overall performance and customer
satisfaction.
While organizations can certainly aim for lower defect rates than 3.4 DPMO, the term "Six
Sigma" itself pertains specifically to that level of performance. Going beyond Six Sigma would typically
involve reaching even higher levels of quality and process control.

RELIABILITY CONCEPTS:
 Reliability is the probability that a product, system, or service will perform its intended
function under specified conditions for a given period of time. It's a statistical approach that
describes the dependability of a system or component.

Concepts related to reliability:

• Intended function: The purpose of the product, such as to cut, light, rotate, or
heat
• Specified conditions: The environment in which the product will operate, such as
temperature, speed, or pressure
• Specific period of time: The amount of time the product is expected to perform,
such as minutes, days, or months
• Satisfactory: The degree of compliance with specifications
• Failure: When a device doesn't perform its intended function
• Reliability calculation: An estimate of the chance that a system will work
properly after a given amount of use
 Reliability is often confused with durability, quality, and availability, but
they are not the same thing.
RELIABILITY IN SERIES AND PARALLEL, PRODUCT LIFE CHARACTERISTICS CURVE
In reliability engineering, a "series system" means that all components must function for the
system to work, so if one component fails, the entire system fails; whereas a "parallel system" has
redundancy, where if one component fails, another can take over, resulting in a higher overall system
reliability; and the "product life characteristics curve" (often called a "bathtub curve") visually
represents the failure rate of a product over its lifespan, typically showing a high initial failure rate,
followed by a stable period, and then an increasing failure rate as the product ages.
Series and parallel reliability:
• Series system:
• Reliability is calculated by multiplying the reliabilities of each individual component,
meaning the overall system reliability is lower than the reliability of the weakest
component.
• Example: A light switch with multiple buttons where all buttons must be pressed to turn
on the light.
• Parallel system:
• Reliability is calculated by considering the probability of all components failing
simultaneously, leading to a higher overall system reliability compared to individual
components.
• Example: A system with multiple backup power generators where only one needs to
function for the system to operate.
Product life characteristics curve (bathtub curve):
• Early life failures (infant mortality):
This initial phase sees a high failure rate due to manufacturing defects or design flaws.
• Useful life phase (constant failure rate):
During this stable period, failures occur at a relatively constant rate due to normal wear
and tear.
• Wear out phase (increasing failure rate):
As the product ages, components degrade, leading to a higher likelihood of failure.
Important considerations:
• Redundancy:
Adding parallel components can significantly increase system reliability by providing
backup options.
 • Maintenance strategies:
Regular maintenance can help mitigate the effects of wear and tear, improving reliability
throughout the product life cycle.
• Reliability analysis:
Engineers use mathematical models to calculate the reliability of complex systems with
components arranged in series and parallel configurations.
TOTAL PRODUCTIVE MAINTENANCE (TMP) RELEVANCE TO TQM,
TEROTECHNOLOGY.

TPM focuses on operational availability/equipment efficiency, whereas TQM has

a broader focus and it's involved with customer satisfaction by improving the quality
of product or service. TPM is a Part of TQM. TQM involves employees, management,
everyone at all levels within the organization.
Total Productive Maintenance (TPM) plays a significant role in Total Quality
Management (TQM) and terotechnology, which is the integrated management of
technology throughout its lifecycle.
Relevance of TPM to TQM:
1. Quality Improvement: TPM focuses on maintaining equipment to prevent
breakdowns, which directly impacts product quality. Consistent and reliable
machinery leads to fewer defects.
2. Employee Involvement: Both TPM and TQM emphasize employee engagement.
In TPM, operators take responsibility for maintenance, fostering a culture of
quality ownership.
3. Continuous Improvement: TPM practices align with TQM principles of
continuous improvement (Kaizen), as maintaining and improving equipment
reliability is an ongoing process.
4. Data-Driven Decisions: TPM relies on performance metrics to identify issues,
similar to TQM’s focus on data analysis for quality improvement.
 Relevance of TPM to Terotechnology:
1. Lifecycle Management: Terotechnology focuses on managing technology through
its lifecycle, and TPM contributes by ensuring equipment remains operational and
efficient throughout that lifecycle.
2. Cost Efficiency: By preventing equipment failure and reducing downtime, TPM
helps lower operational costs, aligning with terotechnology’s goal of optimizing
resource utilization.
3. Risk Management: Effective maintenance strategies in TPM reduce risks
associated with equipment failure, which is a critical aspect of terotechnology.
4. Integration of Systems: Both approaches advocate for integrating maintenance
with other business processes, enhancing overall organizational effectiveness.
TPM is a critical component that supports the goals of TQM and terotechnology
by improving quality, fostering employee engagement, enhancing lifecycle management,
and promoting cost efficiency.

The Five goals of TPM:

TPM aims to establish good maintenance practice in operations through the pursuit of
the five goals of TPM;
1- Improve equipment effectiveness by examining all the losses which occur.
2- Achieve autonomous maintenance by allowing staff to take responsibility for some of
the maintenance tasks and for the improvement of maintenance performance.
3- Plan maintenance with a fully worked out approach to all maintenance activities.
4- Train all staff in relevant maintenance skills so that both maintenance and operating
staff have all the skills to carry out their roles.
5- Achieve early equipment management by ‘maintenance prevention’ (MP), which
involves considering failure causes and the maintainability of equipment during its
design, manufacture, installation and commissioning.

BUSINESS PROCESS RE-ENGINEERING (BPR)

Business process reengineering (BPR) is a management approach that involves redesigning

business processes to improve efficiency and productivity.
APPLICATIONS OF BPR:
• Identifying areas for improvement
Prioritize processes that are broken, cross-functional, or have bottlenecks.
• Developing future state changes
Analyze the current state of business processes and develop a future state that aligns with your goals.
• Designing future processes
Eliminate unnecessary steps in the workflow to make operations more efficient.
 • Performance measurement
Establish and track key performance metrics to ensure that the investment in BPR is paying off.
Other aspects of BPR include:
• Analyzing and identifying opportunities
• Implementing the redesign
• Following some principles, such as focusing on results instead of tasks, and integrating decision-
making throughout each process step
BPR is also known as business transformation, business process change management, or business
process redesign.
Business Process Reengineering (BPR) is a transformative strategy that revamps business
operations completely. It targets significant improvements in productivity, cycle times, quality, and
the satisfaction of employees and customers. BPR aims to restructure business processes for
remarkable enhancements

Business process re-engineering (BPR) – principles

REENGINEERING PROCESS, BENEFITS AND LIMITATIONS.

BENEFITS OF BPR INCLUDE:
• Increased agility and flexibility
• Treating geographically dispersed resources as centralized
• Linking parallel activities in the workflow
• Putting the decision point where work is performed
 • Capturing information once and at the sourc
Business process reengineering (BPR) can help organizations improve efficiency, quality, and customer
satisfaction, while also reducing costs and risk:
• Improved efficiency
BPR can increase efficiency by eliminating redundancy and streamlining processes.
• Enhanced customer satisfaction
BPR can improve customer satisfaction by delivering products and services faster and with higher
quality.
• Reduced costs
BPR can help organizations identify and reduce waste in products and services.
• Improved quality
BPR can improve quality by establishing clear ownership of processes and reducing fragmentation of
work.
• Reduced risk
BPR can help organizations reduce the likelihood of costly errors and non-compliance penalties.
• Improved decision-making
BPR can help companies make informed decisions by revealing valuable data and insights.

LIMITATIONS.OF BUSINESS PROCESS REENGINEERING ARE:

• Significant Investment: BPR can be a time- and resource-intensive process that necessitates
significant organizational investment
• Change Resistance: Because BPR entails major change and disruption, employees can resist
these changes, resulting in a deadlock
• Implementation Difficulties: Implementing new procedures can be tough, necessitating major
change management efforts as well as technical skills
• Potential Job Loss: It can result in job losses, especially if operations are automated or
outsourced, raising concerns among employees
• Culture Shift: BPR necessitates a cultural shift away from incremental improvements and
toward radical process transformation
• Risk of Failure: It entails taking risks, and there is a chance of failure if the redesign does not
produce the expected results.
Business Process Reengineering Steps:

1. Defining the Need for Change

Companies have to identify the need for BPR, including the specific challenges or issues the
organization faces and the goals it wants to achieve through BPR.
2. Forming a Case Management Team

The next step involves assembling a team of individuals with the skills and expertise to lead the
BPR effort, including process experts, technology experts, and change management specialists.
3. Choosing the Process to Re-Engineer

The team has to select the processes that will be the focus of the BPR effort based on factors
such as cost, quality, speed, and customer satisfaction.
4. Mapping the Process and Setting Objectives

Thereafter, they have to create a detailed map of the current process and set specific
improvement objectives. This step requires a thorough analysis of the inputs, outputs, and metrics
associated with the process.
5. Reengineering Management

Redesigning the process is needed to improve efficiency, reduce costs, and enhance customer
satisfaction. This involves a radical rethink of the process rather than incremental improvements.
 UNIT – IV

TOOLS AND TECHNIQUES FOR QUALITY MANAGEMENT:

Quality Function Deployment (QFD) is a method for translating customer needs

into product design and development. It's a structured approach that uses matrices to help
identify critical customer attributes and link them to design parameters. QFD is most
effective when used throughout the entire product lifecycle

Quality Function Deployment: Most Important Product/Service Attributes or Qualities

 BENEFITS OF QFD:

Quality Function Deployment (QFD) can benefit a company in many ways, including:
• Improved customer satisfaction: QFD helps ensure that products meet or exceed customer
needs and expectations.
• Reduced development time and costs: QFD can help identify and address potential problems
early in the development process, which can reduce the need for sequential development stages.
• Improved product quality: QFD integrates quality considerations into every stage of product
development.
• Enhanced cross-functional communication and collaboration: QFD fosters a team-based
approach to product development.
• Greater customer focus: QFD helps companies define their customers' requirements
effectively.
• Knowledge preservation: QFD can help preserve knowledge.
• Efficient communication for team work: QFD can help improve communication for
teamwork.
• Reduced startup problems: QFD can help significantly reduce startup problems.
• Competitive and marketing advantages: QFD can help gain competitive and marketing
advantages.
QFD uses a systematic method of gathering information, such as surveys, interviews,
ethnography studies, and competitive benchmarking.

VOICE OF CUSTOMER:

In Quality Function Deployment (QFD), the Voice of the Customer (VoC)

is a collection of customer requests, preferences, and demands that are used to
create technical requirements for a product. The VoC is a component of the House
of Quality matrix, which is a key part of the QFD process.
•

• Collect customer feedback: Companies use a variety of methods to gather

customer feedback, such as surveys, interviews, and social media.
• Analyze the data: The data is aggregated and ranked in order of importance.
• Create the House of Quality matrix: The VoC items are listed on the left side of
the matrix.
• Create technical requirements: Each technical requirement is tied back to a
specific VoC item in the matrix.
• Use the VoC throughout development: The VoC items are used in other stages of
product development, such as component definition, process planning, and quality
control.
The VoC process should be proactive and continually refined to capture
changing customer requirements.
ORGANIZE INFORMATION:
• House of Quality
A matrix that helps teams capture and prioritize customer needs, and translate them into
technical requirements. The House of Quality can also be used to track a product's progress
towards meeting customer requirements.
• QFD1 matrix
A systematic approach to translate customer requirements into engineering requirements.
• QFD2 matrix
A systematic approach to translate engineering requirements into product parts.
 • Competitive assessment
A way to relate competitive benchmarking results to customer requirements and objective
measures.
QFD is most effective when used throughout the entire product lifecycle. It's important to
capture customer needs accurately through quantifiable data, such as surveys, interviews, and
competitive benchmarking

BUILDING A HOQ
How to make a House of Quality diagram
1. Identify customer requirements. ...
2. Step 2: List technical descriptors. ...
3. Step 3: Analyze competitor offerings. ...
4. Step 4: Establish relationships. ...
5. Step 5: Determine the weight. ...
6. Step 6: Set target values. ...
7. Step 7: Assess the correlation.
QFD process:

Quality Function Deployment (QFD) is a planning process that helps

companies identify customer needs and translate them into product design. The QFD
process is made up of four phases and uses a planning tool called the "house of
quality":

Phase Description

Product definition Gather customer requirements through interviews and focus groups, and map them to
the house of quality
Product Translate the product specifications from the house of quality into part and assembly
development characteristics

Process Design manufacturing and assembly processes to meet the product specifications
development

Process quality Identify critical part and process characteristics, and develop controls, inspections, and
control tests

8. QFD can help companies ensure that they bring products to market that customers want, and
make the overall process faster, more efficient, and less expensive. It's a popular tool in Six
Sigma and is used in many industries, including automobiles, electronics, and software
development.
9. The concept of QFD was first introduced in Japan in the late 1960s. It was introduced to the
United States in the early 1980s.
 FMEA

FAILURE MODE AND EFFECTS ANALYSIS (FMEA):

Quality Glossary Definition: Failure mode effects analysis (FMEA)

Also called: potential failure modes and effects analysis; failure modes, effects and criticality analysis
(FMECA)
Begun in the 1940s by the U.S. military, failure modes and effects analysis (FMEA) is a step-by-step
approach for identifying all possible failures in a design, a manufacturing or assembly process, or a
product or service. It is a common process analysis tool.
• "Failure modes" means the ways, or modes, in which something might fail. Failures are any
errors or defects, especially ones that affect the customer, and can be potential or actual.
• "Effects analysis" refers to studying the consequences of those failures.
Failures are prioritized according to how serious their consequences are, how frequently they occur, and
how easily they can be detected. The purpose of the FMEA is to take actions to eliminate or reduce
failures, starting with the highest-priority ones.
Failure modes and effects analysis also documents current knowledge and actions about the risks of
failures, for use in continuous improvement. FMEA is used during design to prevent failures. Later it’s
used for control, before and during ongoing operation of the process. Ideally, FMEA begins during the
earliest conceptual stages of design and continues throughout the life of the product or service.
• When to use FMEA
• FMEA procedure
• FMEA example
• FMEA resources
 WHEN TO USE FMEA :
• When a process, product, or service is being designed or redesigned, after quality function
deployment (QFD)
• When an existing process, product, or service is being applied in a new way
• Before developing control plans for a new or modified process
• When improvement goals are planned for an existing process, product, or service
• When analyzing failures of an existing process, product, or service
• Periodically throughout the life of the process, product, or service

FMEA PROCEDURE
Note: This is a general procedure. Specific details may vary with standards of your
organization or industry. Before undertaking an FMEA process, learn more about standards and
specific methods in your organization and industry through other references and training.
1. Assemble a cross-functional team of people with diverse knowledge about the process, product
or service, and customer needs. Functions often included are: design, manufacturing, quality,
testing, reliability, maintenance, purchasing (and suppliers), sales, marketing (and customers),
and customer service.
2. Identify the scope of the FMEA. Is it for concept, system, design, process, or service? What are
the boundaries? How detailed should we be? Use flowcharts to identify the scope and to make
sure every team member understands it in detail.
3. Fill in the identifying information at the top of your FMEA form. (Figure 1 shows a typical
format.) The remaining steps ask for information that will go into the columns of the form.

FMEA EXAMPLE:
A bank performed a process FMEA on their ATM system. Figure 1 shows part of it: the function
"dispense cash" and a few of the failure modes for that function. The optional "Classification" column
was not used. Only the headings are shown for the rightmost (action) columns.
Notice that RPN and criticality prioritize causes differently. According to the RPN, "machine jams" and
"heavy computer network traffic" are the first and second highest risks.
One high value for severity or occurrence times a detection rating of 10 generates a high RPN.
Criticality does not include the detection rating, so it rates highest the only cause with medium to high
values for both severity and occurrence: "out of cash." The team should use their experience and
judgment to determine appropriate priorities for action.
TYPES OF FMEA ANALYSES
There are three main types of failure mode and effects analysis.
1. Design FMEA (DFMEA). This focuses on how to prevent or mitigate possible system, product
or process failures. DFMEA is used to determine potential failures, how bad the effect could be,
and how to prevent and mitigate failures. This process helps engineers detect failures early on so
they can be corrected without being costly.
2. Process FMEA (PFMEA). This focuses on identifying potential risks to process PFMEA helps
identify process functions, failure modes and effects to help organizations understand possible
risks for each process step as early as possible.
3. Functional FMEA (FFMEA). This focuses on avoiding possible failures before corrective
actions must be taken. FFMEA identifies and prioritizes potential functional failure modes.

REQUIREMENTS OF RELIABILITY:
 Reliability requirements specify the likelihood that a system or component will function
without failure for a given period of time under specific conditions. They are typically part of a
technical specifications document.
• Goal statement
Reliability requirements are the goal statement for an element. For example, a cell phone
with a 95% reliability goal over five years might have a main circuit board with a 99% reliability
goal over the same period.
• Measurable quantity
Reliability requirements should be expressed as a measurable quantity.
• Performance-based
Performance-based reliability requirements are usually stated as the probability of a
mission phase or objective being performed without failure.
• Granularity
The reliability requirements of an application can vary by component or operation. For
example, an order-processing application might need higher reliability for operations that write
data to the database than for read requests.
• Testing
To test reliability, you can frequently and automatically test workloads to cause failure
and observe how they recover. You can also track key performance indicators (KPIs) to assess a
workload's resiliency.
the failure rate (FR) is a value that indicates how often a component or assembly fails
over a period of time. The FR is calculated as part of the FMEA results and is used to determine
the probability of occurrence.

FAILURE RATE (FMEA)

The failure rate (FR) is a value that indicates how often a component or assembly fails over a
period of time. The FR is calculated as part of the FMEA results and is used to determine the probability
of occurrence.
FMEA failure rates:
• Mode Failure Rate: The number of times a specific failure mode occurs over a period of time
• Mode Operating Time: The length of the applicable mission phase, usually expressed in hours
or operating cycles
• Failure Effect Probability: The probability that a failure will occur
• Mode Criticality: The probability that a specific failure mode will occur
 FMEAs are design tools that help identify the effects of component failures on system
operations. They can be performed at the system, subsystem, assembly, subassembly, or part level.

FMEA STAGES:

• FMEA is a risk management tool that helps organizations proactively identify and address potential
problems. It can help improve quality, reduce costs, and increase customer satisfaction.
• FMEA is different from TQM in scope and focus. FMEA is a tool that analyzes the potential failures
of a product or process, while TQM is a philosophy that encompasses the entire organization.

FMEA can be used in the Design phase to prevent failures, and later for control during
ongoing operation.

• Here are some steps for performing a Design FMEA (DFMEA):

• Define product requirements
• Brainstorm potential failure modes
• Analyze the effects of each failure mode
• Identify the potential causes of each failure mode
• Describe current controls for the potential causes
• Evaluate the occurrence and detection of the current status
• Calculate the Risk Priority Number (RPN) and evaluate the risk
• Create a corrective action plan
• Re-rate the RPN after the corrective action
• The U.S. military first developed FMEA techniques in the 1940s, and they have since been adopted
by many industries, including NASA, automotive, energy, and healthcare.

FMEA PROCESS AND DOCUMENTATION:

• Assemble a team: Create a cross-functional team with a variety of knowledge about the product,
process, and customer needs.
• Identify the scope: Determine the scope of the FMEA.
• Identify failure modes: Identify all the ways a function could fail.
• Identify effects: Determine the consequences of each failure mode on the system, product,
service, and more.
• Determine severity: Rate the severity of each failure effect on a scale of 1–10.
• Determine likelihood: Determine the likelihood of each failure mode occurring.
• Calculate the risk priority number: Calculate the risk priority number (RPN) by multiplying
the severity rating (S) by the occurrence rating (O) by the detection rating (D).
• Identify recommended actions: Identify recommended actions to address each failure mode.
• Document results: Note the results and date of each action taken on the FMEA form.

The J1739_202101 standard provides requirements and recommendations to guide the FMEA
process and documentation. This standard also includes information on how to flow information
from FMEA to validation and control planning.
 SEVEN OLD (STATISTICAL) TOOLS:

SEVEN BASIC STATISTICAL QUALITY TOOLS ARE:

Histogram
 A visual representation of data that can help identify trends and measure the effectiveness of
quality improvements

Pareto chart

A tool that helps identify key issues and take corrective action to improve the desired outcome

Pareto chart

A line chart that helps monitor quality characteristics and process changes

Check sheet

A tool for collecting quantitative or qualitative data, where the data is listed in a table and its
status is checked
Scatter diagram

A tool for analyzing the quality of a product or service, and identifying systematic errors

Cause and effect diagram

Also known as a fishbone diagram, this tool helps identify the potential causes of a problem

Flow chart

A visual tool that depicts the flow of a process, including the flow of information, tasks, people,
material, or decision
SEVEN NEW MANAGEMENT TOOLS:

The seven new quality control tools are also known as the seven management and planning tools:
• Affinity diagram: Organizes ideas into their natural relationships
• Interrelationship diagram: Shows cause-and-effect relationships
• Tree diagram: Breaks down broad categories into finer levels of detail
• Matrix diagram: Shows the relationship between two, three, or four groups of information
• Arrow diagram: Shows the order of tasks in a project or process
• Process decision program chart: Identifies what might go wrong in a plan
 • Procedure diagram: Another name for one of the seven new quality tools
The seven basic quality control tools are often used with other process improvement methodologies,
such as Lean management, Six Sigma, TQM, and continuous improvement processes

BENCHMARKING

BENCHMARKING:
Benchmarking is the process of comparing a business's performance to other similar companies
or organizations to establish standards and identify areas for improvement:
• What is benchmarking?
Benchmarking is a way to measure a business's performance against a predetermined standard, or
benchmark. This can be done by comparing a business's products, services, or processes to those
of other organizations.
• Why is benchmarking important?
Benchmarking helps businesses understand what's normal in their industry and what customers
expect. This can help businesses adjust their products, messaging, or working practices to remain
competitive.
• How can benchmarking be used?
Businesses can use benchmarking to compare their performance against competitors, previous
results, or goals. For example, a business can use benchmarking to see if they're improving
internally, or if their results are what they expected.
• What can be benchmarked?
Businesses can establish benchmarks for different parts of their business, such as teams,
products, services, or overall metrics like sales volume and revenue.
• What are some common benchmarking tools?
Some common benchmarking tools include mission and vision statements, customer surveys,
SWOT analysis, and informal benchmarking.
 Benchmarking is the practice of comparing business processes and performance metrics to
industry bests and best practices from other companies. Dimensions typically measured are quality, time
and cost.
POKA YOKE:

Poka-yoke is a Japanese term that means "mistake-proofing" or "error prevention". It's a process
analysis tool that uses automatic devices or methods to prevent errors or make errors immediately
obvious.
Poka-yoke is a key component of the Toyota Production System (TPS) and is also a foundational
tool of Lean and Six Sigma. It's used in situations where human error can cause mistakes or defects, or
where the consequences of an error are expensive or dangerous.

Examples of poka-yoke:

• Safety
Making it physically impossible to start a machine until the operator is in a safe zone
• Automobiles
A poka-yoke in a car might warn the driver with an auditory alert if they exit the vehicle but fail to
remove the ignition key. Poka-yoke is built on six principles: elimination, replacement, prevention,
facilitation, detection, and mitigation.
 UNIT – V

QUALITY SYSTEMS ORGANIZING AND IMPLEMENTATION

INTRODUCTION TO ISO 9001, 9004– QUALITY MANAGEMENT SYSTEMS

ISO 9001 and ISO 9004 are both standards that relate to quality management systems (QMS):
• ISO 9001
Defines the requirements for a QMS, and is the only standard in the ISO 9000 series that can be
audited for certification. It's intended to be applicable to any organization, regardless of size or type.
The current version of ISO 9001 is from September 2015. The standard is based on seven principles,
including a focus on customer needs, top management involvement, and continuous improvement.
• ISO 9004
Provides guidance on how to make a QMS more effective and efficient. It's not intended for
certification or regulatory use, but can be a useful reference for improving ISO 9001 implementation.
The most recent update to ISO 9004 was in 2009. It focuses on improving an organization's overall
performance, and includes planning, implementation, analysis, evaluation, and improvement.
 The Roles of ISO 9001 and ISO 9004

The role for the ISO 9001 standard is to provide confidence as a result of demonstration, in
product conformance to established requirements, while that for the ISO 9004 standard is to
achieve benefits for all stakeholders groups through sustained customer satisfaction.
The Quality Management Principles provided the basis to develop an understanding on the
relationships between the standards and a means to build consistency inot the pair of the
standards.

GUIDELINES FOR PERFORMANCE IMPROVEMENT:

• Communicate: Exchange information with employees and communicate the company's goals.
• Set clear objectives: Make sure employees understand what they need to do differently, by
when, and how it will be measured.
• Conduct regular check-ins: Provide structure and direction to prevent employees from going
off track.
• Offer relevant resources: Provide tools and resources to help employees learn the skills and
knowledge they need.
• Conduct performance evaluations: Use job-related criteria to evaluate employee performance
and identify areas for improvement.
• Be specific and measurable: Define performance issues with concrete examples or data, and set
SMART goals for resolving them.
• Improve employee satisfaction: Improving employee satisfaction can lead to better
performance by individuals and the company as a whole.
Need for a Performance Improvement Plan
• Performance or Behavioral Issues: Identify specific performance or behavioral concerns that
can be substantiated. Review performance records and past feedback to assess the severity and
persistence of the issues.
• Manager’s Commitment to Employee Success: Evaluate the manager’s commitment to
helping the employee succeed. Ensure that the intention behind the PIP is to support
improvement, rather than terminate the employee.
• Feasibility of Improvement: Determine if the issues can be resolved through a formal
improvement plan. Assess the potential for improvement based on the nature of the problems and
the employee’s willingness to address them.
• Training and Support: Consider if the employee has received proper training and support to
meet performance expectations. Identify any gaps in training or resources that may have
contributed to the performance issues.
Challenges of Using a Performance Improvement Plan at work
• Negative Perception: PIPs often carry a negative connotation, as employees may perceive them
as a precursor to termination.
• Lack of Trust: If employees feel that a PIP is solely focused on documenting poor performance
rather than supporting development, trust may be damaged.
• Time and Resources: Developing and implementing a PIP requires time and resources from
both managers and HR professionals.
• Misinterpretation: Employees may misinterpret a PIP as a sign of imminent termination,
leading to increased stress and anxiety.
 QUALITY AUDIT
QUALITY AUDIT:

• A quality audit is a systematic and independent examination or assessment of an organization's

QMS.
• It is done to evaluate the effectiveness of an organization's quality controls, identify areas of
improvement, and ensure all areas are quality-compliant.

What is quality audit?

A quality audit is typically conducted by an external or internal quality auditor or audit team at
agreed time intervals, ensuring that an organization has a clearly defined system for quality monitoring.
It is an essential element of the ISO 9001 quality system standard.

What is the role of the auditor?

An auditor is a person who understands the business and industry standards and conducts an
audit as per the standards. Quality auditors can be one of two categories, external or internal. An internal
auditor is an employee of the company being audited whereas an external auditor is a third party hired
from an approved agency, customer or client to evaluate the quality system or products.
What are the types of quality audits?
There are different types of quality audits, broadly categorized as follows:

Process audit
A process audit specifies whether a company’s processes are working within defined limits. It
measures conformance to any predefined requirements or industry standards along with the
effectiveness and adequacy of the process controls as established by procedures, work
instructions, training, and process specifications.

Product audit
Product audit inspects whether a particular product or service complies with customer
requirements, specifications, and performance standards.
 System audit
A system audit confirms that all elements of a management system are effective and appropriate,
and have been developed, implemented, and documented as per the specified requirements. A
quality management system audit measures an organization’s existing quality management
system to assure its conformance with contract commitments, company policies, and regulatory
requirements.
First-party, second-party, and third-party audits
• First-party audit:
A first-party audit is an internal quality audit designed to measure the performance of the
organization’s objectives, identification of problem areas, and to find opportunities for
continuous improvement. This audit is conducted by auditors who are employed by the
organization being audited.
• Second-party audit:
A second-party audit is an external audit conducted by auditors who are hired from outside the
organization to conduct an independent audit. Second-party audits are more conventional than a
first-party audit as the audit results may impact the buying decisions of the customer.
• Third-party audit:
A third-party audit is performed by an external independent organization without conflict of
interest resulting in recognition, certification, license approval, a penalty, or a fine being issued
by the third-party organization.
TQM CULTURE AND LEADERSHIP
Leadership plays a critical role in creating a Total Quality Management (TQM) culture and
driving the success of TQM initiatives. Leadership is responsible for setting the direction for quality
improvement efforts, providing motivation and support to employees, and shaping organizational
culture.
• Emphasize quality: Ensure that policies, procedures, and processes emphasize quality.
• Involve employees: Ensure that all employees are aware of the importance of quality and are
involved in continuous improvement initiatives.
• Set a vision: Provide a vision for quality improvement and encourage employees to embrace
TQM principles.
• Communicate: Ensure that strong communication lines are in place.
• Create teams: Encourage teamwork and the creation of cross-functional teams.
• Measure performance: Use customer-based measures of performance.
• Test messages: Regularly test messages with employees and use the feedback to ensure
sustained relevance.
TQM is a management philosophy that aims to improve organizational performance and
customer satisfaction by integrating quality principles and practices into all aspects of an organization's
operations.
A core definition of total quality management (TQM) describes a management approach to long-
term success through customer satisfaction. In a TQM effort, all members of an organization participate
in improving processes, products, services, and the culture in which they work.
EMPLOYEE INVOLVEMENT :
Employee involvement is a key principle of Total Quality Management (TQM) programs, and is
often called empowerment. TQM programs emphasize that employees should be involved in the TQM
culture, and that they should be responsible for quality. This includes:
• Calling attention to quality problems: Employees should point out quality issues as they do
their normal work.
• Contributing ideas: Employees should be able to contribute their ideas and efforts to shared
goals and objectives.
• Making decisions: Employees should be empowered to make important decisions.
• Feeling respected: Employees should be treated in a way that makes them feel confident and
respected.
Employee involvement can help a company succeed in quality management in several ways, including:
• Creating a culture of improvement: Employees can help keep quality management plans on
track.
• Adapting to change: Involving employees in decision-making can help an organization
anticipate and deal with future changes.
• Providing new perspectives: Employees can provide new ideas and perspectives that can help
an organization extend its vision.

Role of Employee Involvement:

Employee involvement, participation, and empowerment form the cornerstones of TQM.
Involvement implies interaction between individuals, groups, and teams. However, managers who are
used to a paternalistic and dictatorial mode of management will have difficulty in making TQM work.
EMPLOYEE EMPOWERMENT AND MOTIVATION
Employee empowerment and motivation are both important for an organization's
success. Employee empowerment is the practice of giving employees the tools and authority to make
decisions and contribute to the company's success. Employee motivation is the level of energy,
commitment, and creativity that an employee brings to their job.
Employee empowerment involves granting employees the authority to make decisions and take
ownership of their work, fostering a sense of control over job responsibilities. This concept encourages
staff to contribute ideas and suggestions, enhancing their engagement with the organization.

WAYS TO EMPOWER EMPLOYEES:

• Trust employees: Give employees the autonomy to manage their own work, objectives, and
deadlines.
• Provide resources: Ensure employees have the resources they need to be successful.
• Set clear expectations: Set clear boundaries and expectations around when and how the work
will be completed.
• Be open to feedback: Request and act on consistent feedback from employees.
• Recognize achievements: Recognize employee achievements to help improve their confidence
and engagement.
• Create a learning environment: Support the development of soft skills and create a continuous
learning environment.
WAYS TO MOTIVATE EMPLOYEES:
• Provide monetary and non-monetary benefits: Provide employees with monetary and non-
monetary benefits, rewards, recognition, and good appraisals.
• Give incentives: Provide employees with incentives, which can be monetary or non-monetary.
Empowered employees are more likely to be innovative, take calculated risks, and contribute to
the overall growth and success of the company.
RECOGNITION AND REWARD IN TQM:

In Total Quality Management (TQM), recognition and rewards are important tools to motivate
employees, improve productivity, and build a positive workplace culture.
ways to recognize and reward employees in a TQM environment:
• Acknowledge achievements: Recognize employees for their efforts and accomplishments in
areas like process improvement, teamwork, and customer satisfaction.
• Provide feedback: Give specific and timely feedback to employees.
• Celebrate successes: Celebrate milestones and successes with the team.
• Offer rewards: Provide tangible rewards like bonuses, certificates, or gifts.
• Make it public: Make recognition public so that others can see the employee's achievements.
• Involve multiple people: Involve both line managers and HR representatives to ensure that
recognition and rewards are integrated with the company's goals.
Recognition and rewards can help employees feel a sense of belonging and ownership in their
workplace. They can also boost morale, confidence, and satisfaction, and encourage employees to set
and reach goals.
INTRODUCTION TO SOFTWARE QUALITY IN TQM
Total Quality Management (TQM) is a comprehensive approach that focuses on improving quality
across all organizational processes. In the context of software development, TQM emphasizes the
importance of quality at every stage of the software lifecycle, from planning and design to development,
testing, and maintenance.

Concepts of Software Quality in TQM:

1. Customer Focus: TQM stresses understanding and meeting customer needs. In software, this
means delivering applications that not only function correctly but also provide a great user
experience.
2. Continuous Improvement: TQM promotes a culture of ongoing improvement. This involves
regularly assessing and refining software development processes to enhance quality and
efficiency.
3. Employee Involvement: Engaging all employees in quality initiatives is vital. Teams should be
empowered to identify issues, suggest improvements, and take ownership of their work, fostering
a collaborative environment.
4. Process Orientation: TQM encourages focusing on processes rather than just outcomes. In
software, this involves standardizing development practices, implementing best practices, and
using metrics to evaluate process effectiveness.
5. Data-Driven Decision Making: Using data to inform decisions is crucial. This can involve
metrics such as defect density, code complexity, and user feedback, which help guide
improvements and prioritize quality efforts.
6. Defect Prevention: TQM emphasizes preventing defects rather than just detecting them.
Techniques like peer reviews, automated testing, and adherence to coding standards can help
minimize errors early in the development process.
7. Cross-Functional Teams: Collaboration across departments (development, QA, operations) is
essential for ensuring quality. TQM fosters communication and teamwork, which helps align
goals and improve overall software quality.
Implementation Strategies:
• Training and Development: Investing in training for team members on quality practices and
tools can enhance their skills and commitment to quality.
 • Quality Audits and Reviews: Regular audits and reviews of processes and products can help
identify areas for improvement.
• Feedback Loops: Establishing mechanisms for feedback from users and stakeholders can guide
ongoing enhancements and ensure alignment with customer expectations.
• Cultural Change: Promoting a culture that values quality and encourages innovation is key to
successful TQM implementation in software development.
By integrating these TQM principles into software development, organizations can achieve higher
levels of quality, resulting in better products, increased customer satisfaction, and reduced costs
associated with defects and rework.

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