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Quality

1) The document discusses Total Quality Management (TQM), which is the management of quality throughout an organization at all levels. TQM focuses on customer satisfaction, continuous improvement, and employee participation. 2) Key aspects of TQM include the Plan-Do-Check-Act cycle, quality circles to solve problems, and benchmarking best practices. Statistical tools like control charts are also used. 3) Quality is defined by what customers want and are willing to pay for. Both manufactured products and service quality are evaluated based on factors like performance, reliability, and consistency from the customer's perspective.

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120 views

Quality

1) The document discusses Total Quality Management (TQM), which is the management of quality throughout an organization at all levels. TQM focuses on customer satisfaction, continuous improvement, and employee participation. 2) Key aspects of TQM include the Plan-Do-Check-Act cycle, quality circles to solve problems, and benchmarking best practices. Statistical tools like control charts are also used. 3) Quality is defined by what customers want and are willing to pay for. Both manufactured products and service quality are evaluated based on factors like performance, reliability, and consistency from the customer's perspective.

Uploaded by

gsidhu156276
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
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Quality and TQM

What is Quality?

A degree or level of excellence.


Difficult to define
Various attributes

Quality is determined by what


Customers want & is willing
to pay for.
What is Quality?

•Different needs of consumers


Different Quality Expectations
Fitness for Use
How well the product or service
does what the consumer thinks
It is supposed to do
Customer’s Perspective
Manufactured products-Quality

 Performance – Basic operating characteristics.


How well a car handles or its gas mileage?
 Reliability – Product Operating properly within an
expected time frame.
 Durability – Life span of product before replacement.
 Serviceability – Ease of getting repairs, speed of repairs.
 Aesthetics – How a product looks, sound , feels, smells.
 Safety
Customer’s Perspective
Service Quality

 Time and timeliness – Customer waiting time.


 Completeness – Is everything provided?
 Courtesy – How customers are treated?
 Consistency – Same level of service each time.
 Accessibility and convenience – Easy to obtain
Service.
 Accuracy – Is the service performed right every time?
Quality – Two Perspectives
Costs of Quality

Cost of achieving good quality

Prevention costs Appraisal costs

Cost of poor quality

Internal failure costs External failure costs


Prevention costs

Costs of trying to prevent poor quality products


from reaching the customer.

• Quality planning costs


• Quality training costs
• Product design costs
• Process design costs
Appraisal or Inspection costs

Costs incurred to identify defective products


before they are shipped to customers.
• Testing and inspection costs –
Raw material, goods in process, finished goods.
• Test equipment costs
• Operator costs
Internal failure costs

Costs incurred when poor quality products are


discovered during appraisal process.

• Scrap costs
• Rework costs
• Re-inspection of reworked products
• Downtime costs
External failure costs

Costs incurred after the customer has received


poor quality product.

• Customer complaint costs


• Product return costs
• Warranty claims costs
• Lost sales costs
Evaluating Quality Performance

Financial measures are helpful to evaluate


trade-offs among prevention costs,
appraisal costs, and failure costs.
Nonfinancial measures help focus attention
on the precise problem areas that need
improvement and also serve as indicators
of future long-run performance.
Nonfinancial Measures

Nonfinancial measures of customer satisfaction:


• Number of customer complaints
• Defective units as a percentage of total units
shipped to customers
• Percentage of products that experience early
or excessive failure
• On-time delivery rate
Nonfinancial Measures

Nonfinancial measures of internal performance:


• Number of defects for each product line
• Process yield
(ratio of good output to total output)
• Employee turnover
(ratio of the number of employees who left
the company to the total number of employees)
TQM
(Total Quality Management)

The management of quality


throughout the organization
at all levels and across all
areas.
TQM
(Management Principles)
 The customer defines quality, and customer’s needs
are top priority.
 Top management must provide the leadership
for quality.
 Quality is a strategic issue.
 Quality is the responsibility of all employees.
 Focus on continuous quality improvement.
 Quality problems are solved through cooperation.
 Use of statistical quality control methods.
 Training & education of all employees.
How TQM Companies Work?

TQM Companies Traditional Companies


 Company / Product
 Customer driven
driven.
“What is our business?
Is not determined by the “The customer can have any
Producer but by the Color car as long as it’s black.”
Henry Ford
Consumer”.
Peter Drucker

 Long term commitment


 Short term profitability
How TQM Companies Work?

TQM Companies Traditional Companies


 Continuous improvement  High production cost

& waste
 Quality at the source  Inspection after the fact
 High employee  Top-down approach

Participation
 Cross functional teams  Fortressed departments
 Elimination of waste  High scrap & rework
TQM Tools

1. The Plan- Do- Check- Act cycle

2. Quality Circles

3. Benchmarking

4. Statistical & quantitative tools


The PDCA Cycle
Quality Circles
Benchmarking

Continuously evaluating the practices of


best-in-class and adapting company processes to incorporate
the best of these practices.

Benchmarking is the search for industry best practices


that lead to superior performance
Benchmarking Advantages

        Prevents "reinventing the wheel“.


        Leads to adaptation of proven practices.
        Leads to adaptation of best practices.
        Results in a better understanding of
internal strengths and weaknesses.
        Make companies more competitive.
 Improves customer satisfaction.
Statistical and Quantitative Techniques

Pareto diagrams

Control charts

Cause-and-effect
diagrams
References
#
www.tutor2u.net/business/production/quali
tytqm.com
# www.managementparadise.com

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