BBA Sem 5

Total Quality Management

Module 4

Dr. Ritu Rani

Assistant Professor
Department of Management
Studies
 Quality Policy Deployment

“Policy Deployment” is a systemic approach to management of critical business processes through

step-by-step planning, implementation, and review process for managed change.
It is a technique designed to ensure that strategic goals and objectives drive all of the major
activities in the organization.
• Hoshin Kanri (also called Policy Deployment) is a method for ensuring that a company's strategic
goals drive progress and action at every level within that company.
• This method eliminates the waste that comes from inconsistent direction and poor
communication.
• Hoshin Kanri is a strategic planning and management methodology that originated in Japan. It is
designed to align a company's goals (strategy) with its daily operations and ensure that all levels
of the organization are working towards the same objectives.
• The term "Hoshin Kanri" can be roughly translated as "policy deployment”.
• Hoshin Kanri strives to get every employee pulling in the same direction at the same time. It
achieves this by aligning the goals of the company (Strategy) with the plans of middle
management (Tactics) and the work performed by all employees (Operations).
 Quality Policy Deployment

• Quality Policy Deployment refers to the process of implementing and integrating an

organization’s quality policy across all levels and functions.
• A quality policy is a formal statement from management that outlines the organization’s
commitment to meeting quality standards, satisfying customer requirements, and
achieving continuous improvement.
• The purpose of deploying a quality policy is to ensure that every part of the
organization understands, supports, and actively contributes to the quality objectives
set by the company.
• The deployment process involves translating the quality policy into actionable
practices, procedures, and behaviors, ensuring that it becomes part of the company
culture and operations.
 Steps to implement quality policy

1. Definition of the Quality Policy: Creating a clear, understandable, and relevant quality
policy that aligns with the organization's mission, vision, and strategic goals.
2. Communication: Ensuring that the policy is effectively communicated to all employees,
stakeholders, and relevant parties through meetings, visual displays, training sessions,
and documentation.
3. Training and Awareness: Providing employees with the necessary training to
understand the quality policy and their roles in achieving quality objectives.
4. Process Alignment: Ensuring that all processes, workflows, and procedures align with
the quality policy. This often involves updating existing Standard Operating Procedures
(SOPs) and quality management practices.
5. Performance Monitoring: Establishing measurable objectives and key performance
indicators (KPIs) to track progress toward achieving the goals set out in the quality
policy.
 Steps to implement quality policy

6. Feedback and Continuous Improvement: Continuously gathering feedback from

employees, customers, and stakeholders to refine the policy and its implementation.
Continuous improvement is a core element of quality management.
7. Leadership Commitment: Strong leadership is essential to the successful deployment
of a quality policy. Management should provide resources, support, and lead by example
in promoting a culture of quality.
8. Regular Audits and Reviews: Continuously review and update the policy based on the
results of audits and performance reports. This ensures the policy stays relevant and
aligned with evolving business goals and market conditions.
By following these steps, organizations can ensure that their quality policy is effectively
deployed, fostering a culture of continuous improvement and customer satisfaction.
 Quality Function Deployment
• QFD is a focused methodology for carefully listening to the voice of the customer and then
effectively responding to those needs and expectations.
• First developed in Japan in the late 1960s as a form of cause-and-effect analysis
• QFD is an essential tool not just for quality management but also for planning.
• Originally developed in Japan by Professors Yoji Akao and Shigeru Mizuno in the late 1960s while
working for Mitsubishi’s shipyard, QFD was later adopted and widely used by other companies
such as Toyota and its suppliers.
• This is a more proactive approach than other methods of quality control that focus on fixing
customer issues during or after manufacturing.
• The model aids in translating customer needs and expectations into technical requirements by
listening to the voice of customer.
• In QFD, quality is a measure of customer satisfaction with a product or a service.
• It’s a method to help analyze relationships between customer desires, product design, and
technical requirements. When done correctly, it reveals the best features to build to improve
customer satisfaction.
 Voice of the Customer (VOC)

• This involves gathering qualitative and quantitative insights into what customers desire,
need, and value in a product or service offering.
• The goal is to transform these voices into specific, actionable customer requirements
or “whats” that can drive the design process.
There are a few ways to gather customer feedback to build the VOC, including:
• Surveys
• User interviews
• Focus groups
• Reviews
• Feature requests
• Sales feedback
• Product analytics
 Customer Requirements &
House of Quality
Customer Requirements
• Once the voice of the customer data has been collected and analyzed, the next step is
to distill it into a prioritized list of customer requirements.
• These requirements articulate the features, functions, performance metrics, and non-
functional attributes that customers deem essential or desirable.
House of Quality
• The House of Quality matrix is arguably the most powerful and recognizable tool in the
QFD toolbox.
• This maps customer requirements against technical specifications, design
characteristics, competitive benchmarks, and more.
 4 phases of quality function
deployment
1. Product planning
• The product planning phase begins with gathering customer feedback to develop the
VOC. It’s usually technical requirements. There may also be a competitive analysis to
find the strength and weaknesses of your competitors.
• Next, identify the relationship between the VOC and technical specifications to pinpoint
what features to build next to satisfy customer needs.
Product planning can help with the following goals:
• Prioritizing customer requirements
• Defining product requirements
• Creating a customer-focused product roadmap
 Phases of quality function
deployment
2. Product development
• Technical requirements move to the left side of the house of quality matrix, and a new
set of control factors are put on top. The control factors for product development are
usually critical parts or product specs.
• In the product development phase, the goal is to recognize the key parts or specs to
build a feature.
It also helps with:
• Incorporating customer requirements into product design
• Collaborating with cross-functional teams
• Ensuring design consistency and quality
 Phases of quality function
deployment
3. Process planning

This section identifies processes necessary to build features and deliver functionality.
This is crucial information for production and quality teams.
This phase may be a good time for identifying verification and validation, including:
• Conducting prototype testing and customer trials
• Validating product design and functionality
• Gathering and analyzing customer feedback
 Phases of quality function
deployment
4. Process quality control
This stage helps in identifying the best way to check the quality of the processes
identified in the previous phase.
For example:
• Launching the product and continuously monitoring customer satisfaction
• Incorporating customer feedback into product improvements
• Ensuring the product meets changing customer needs and market trends
 Benefits of QFD
• Now, how does this approach help organizations ensure the quality of their processes,
particularly in product development? To summarize, here are a few of the major
advantages of using QFD:
• Gain a better understanding of your customers – Be able to predict, know, and act
on what they need, either stated or unstated, and provide a better customer experience.
• Utilize customer feedback for continuous improvement – Transform what the
customers need into quantifiable business goals through the form of performance
metrics, process controls, and more.
• Establish a better structure of requirements – The various stages of product
development require efforts across departments, and inefficiencies in the process may
occur. QFD helps build a standardized system that minimizes unnecessary risks and
bottlenecks.
• Have an efficient way of allocating resources – By knowing the priority list of the
customer requirements to be implemented, organizations can then be more intentional
and focus on critical improvement opportunities.
 Benchmarking

Benchmarking is a strategic management process used by organizations to compare their

performance, processes, and practices against industry standards or the best practices
of other organizations.
By analyzing key performance indicators and best practices, benchmarking helps
companies set realistic goals, make informed decisions, and stay ahead of the
competition. It is a vital tool for businesses that want to enhance their performance and
achieve success in a rapidly changing marketplace.
Benchmarking is a continual improvement process. After implementing a new process,
review it to see if there are any changes that need to be made.
The main goal of benchmarking is to identify areas for improvement, adopt superior
practices, and achieve higher levels of performance.
It allows organizations to learn from others, gain competitive insights, and apply lessons
to improve their efficiency, quality, and innovation.
 Benchmarking

• Benchmarking is defined as the process of measuring products, services, and processes

against those of organizations known to be leaders in one or more aspects of their
operations. Benchmarking provides necessary insights to help you understand how
your organization compares with similar organizations, even if they are in a different
business or have a different group of customers.
• Benchmarking can also help organizations identify areas, systems, or processes for
improvements
Advantages of benchmarking

• Improved Performance: Identifying and adopting best practices helps organizations

close performance gaps and improve efficiency, quality, and customer satisfaction.
• Innovation: Benchmarking exposes organizations to new ideas, innovations, and
industry trends that they might not have considered otherwise.
• Competitive Advantage: By learning from the best practices of competitors or industry
leaders, organizations can enhance their own capabilities and gain a competitive edge.
• Goal Setting: Benchmarking helps organizations set realistic and achievable goals based
on proven standards, leading to more effective strategic planning.
• Cost Reduction: By adopting more efficient processes identified through benchmarking,
organizations can reduce costs and improve resource utilization.
• Customer Satisfaction: Understanding how leading organizations meet customer needs
can help improve customer service and satisfaction.
 Taguchi Quality Loss Function

• The Taguchi Quality Loss Function is a statistical tool that helps companies understand
and reduce the economic losses that occur when products or processes deviate from
their target performance. The function was developed by Japanese statistician Genichi
Taguchi.
• The Taguchi Quality Loss Function is based on the idea that even small quality
variations can lead to increased costs and lower customer satisfaction. The function
assesses the financial impact of a product's deviation from its target value by
considering three factors:
• Loss caused by a defect: This includes the cost of reworking or replacing the product,
as well as lost time or productivity.
• Number of defects: This measures the overall quality of the product and manufacturing
process.
• Number of units produced: More units produced means a larger overall loss if there
are defects.
 Taguchi Quality Loss Function

• Dr. Taguchi's primary objective was to shift the focus from merely meeting
specifications to actively minimizing variation.
• This approach encourages manufacturers to strive for continuous improvement and
deliver consistently high-quality products that meet customer expectations.
• By emphasizing the minimization of variation, the Taguchi Loss Function helps drive the
development of robust designs and improved manufacturing processes, ultimately
leading to better customer satisfaction and reduced costs for manufacturers.
• It provides a valuable framework for understanding the relationship between product
quality and financial loss, enabling companies to make informed decisions about
product design, manufacturing processes, and continuous improvement efforts.
 Taguchi Quality Loss Function

• The Taguchi Loss Function (or Quality Loss Function) is a mathematical representation
that quantifies the relationship between product quality and the financial loss (loss to
society) associated with deviations from a target value.
• The Taguchi Loss Function is an equation used to quantify the financial loss incurred
due to deviations in product quality from the target value.
• It is based on the principle that any deviation from the ideal or target value increases
costs associated with poor quality, customer dissatisfaction, or product failures.
The formula for the Taguchi Quality Loss Function is 𝐿𝑜𝑠𝑠(𝐿)=𝑘*(𝑌−𝑇)2, where:
• L: Represents the loss due to deviation from the target
• k: A constant representing the cost of poor quality
• Y: Y is the actual value of the quality characteristic being evaluated.
• T: The target value or desired performance level
 Total Productive Maintenance

• Total productive maintenance (TPM) is a methodology designed to improve production

systems by preventing problems. Its goal is to improve product quality, minimize
delivery time, and reduce costs by eliminating:
• Equipment breakdowns
• Product defects
• Unplanned downtime
• Accidents
• Waste
TPM emphasizes proactive and preventative maintenance to maximize the operational
efficiency of equipment.
In the right environment this can be very effective in improving productivity (increasing
up time, reducing cycle times, and eliminating defects).
 The TPM model
The TPM model starts with a set of company-wide principles called the 5-S Foundation.
That foundation supports the eight pillars of TPM — distinct techniques designed to assist and
improve equipment reliability.
Autonomous Maintenance
• Operators are trained to perform routine maintenance tasks, such as cleaning and
lubricating, reducing the workload of maintenance personnel and increasing equipment
effectiveness.
Focussed Maintenance
• A continuous improvement approach that focuses on improving individual processes rather
than the entire system. It involves small, incremental changes made by employees at all
levels of an organization to improve efficiency, quality, and safety.
Planned Maintenance
• Maintenance activities are planned and scheduled in advance, ensuring that maintenance
personnel have the necessary resources and equipment to perform their tasks efficiently.
 The TPM model

Quality Maintenance
• Quality is built into the maintenance process, ensuring that equipment is maintained to
meet or exceed quality standards.
Early Equipment Management
• Equipment is designed for reliability and maintainability, and potential problems are
identified and addressed in the design phase.
Education and Training
• All employees receive training on TPM principles and practices, empowering them to
identify and address equipment problems.
Office TPM
• TPM principles are applied to administrative processes, such as planning and
scheduling, to improve efficiency and effectiveness.
 The TPM model

Safety, Health, and Environment

• TPM emphasizes safety, health, and environmental considerations, ensuring that
maintenance activities are performed safely and with minimal impact on the
environment.
 Failure Mode and Effects Analysis

• Failure Mode and Effects Analysis (FMEA) is a structured approach to discovering

potential failures that may exist within the design of a product or process.
• It is a common process analysis tool.
• Failure modes are the ways in which a process can fail. Effects are the ways that these
failures can lead to waste, defects or harmful outcomes for the customer. Failure Mode
and Effects Analysis is designed to identify, prioritize and limit these failure modes.
• "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.
 Failure Mode and Effects Analysis

• 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.
• FMEA is a proactive method of uncovering potential failures in business processes in
order to prevent them from happening or mitigate their effect by finding out where
they might occur and determining their impact.
• FMEA’s systematic approach to identifying and addressing causes of failures can help
prevent costly manufacturing issues, improve product quality and service reliability, as
well as increase customer satisfaction.
 References
• Besterfield D.H., et al. Total quality management. N.Y. Pearson
Education Publ; 2003.
• Juran J.M., Gryna F.M. Quality planning and analysis. New York:
McGraw Hill Publ; 1980.
• Deming W.R. Out of crisis. Chambers University Press; 1993.
THANK YOU