Total Quality Management Evolution

Quality- a characteristic or feature that someone or something has. In manufacturing, a measure of

excellence or a state of being free from defects, deficiencies and significant variations.

Total Quality Management

-describes a management approach to longterm 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.
Purpose- to improve customer satisfaction

History
The roots of Total Quality Management can be traced to early 1920's production quality control ideas, and
notably the concepts developed in Japan beginning in the late 1940's and 1950's, pioneered there by Americans
Feigenbum, Juran and Deming.
At that time (1940), Japans industrial system was virtually destroyed, and it had a reputation for cheap
imitation products and an illiterate workforce. The Japanese recognized these problems and set about solving them
with the help of some notable quality gurus Juran, Deming and Feigenbaum.
From inspection to total quality
During the early days of manufacturing, an operatives work was inspected and a decision made whether to
accept or reject it. As businesses became larger, so too did this role and full time inspection jobs were created.
Accompanying the creation of inspection functions, other problems arose:
More technical problems occurred, requiring specialized skills, often not possessed by production workers
The inspectors lacked training
Inspectors were ordered to accept defective goods, to increase output
Skilled workers were promoted into other roles, leaving less skilled workers to perform the operational
jobs, such as manufacturing
These changes led to the birth of the separate inspection department with a chief inspector, reporting to
either the person in charge of manufacturing or the works manager. With the creation of this new department, there
came new services and issues, e.g, standards, training, recording of data and the accuracy of measuring equipment. It
became clear that the responsibilities of the chief inspector were more than just product acceptance, and a need to
address defect prevention emerged.
Hence the quality control department evolved, in charge of which was a quality control manager, with
responsibility for the inspection services and quality control engineering.
In the 1920s statistical theory began to be applied effectively to quality control, and in 1924 Shewhart made the first
sketch of a modern control chart. His work was later developed by Deming and the early work of Shewhart,

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Deming, Dodge and Romig constitutes much of what today comprises the theory of statistical process control (SPC).
However, there was little use of these techniques in manufacturing companies until the late 1940s.

In the early 1950s, quality management practices developed rapidly in Japanese plants, and become a
major theme in Japanese management philosophy, such that, by 1960, quality control and management had become
a national preoccupation.

In the late 1970s and early 1980s, the developed countries of North America and Western Europe suffered
economically in the face of stiff competition from Japan's ability to produce high-quality goods at competitive cost.
For the first time since the start of the Industrial Revolution, the United Kingdom became a net importer of finished
goods. The United States undertook its own soul-searching, expressed most pointedly in the television broadcast
of If Japan Can... Why Can't We? Firms began reexamining the techniques of quality control invented over the past
50 years and how those techniques had been so successfully employed by the Japanese. It was in the midst of this
economic turmoil that TQM took root.

The exact origin of the term "total quality management" is uncertain. It is almost certainly inspired
by Armand V. Feigenbaum's multi-edition book Total Quality Control (OCLC 299383303) and Kaoru
Ishikawa's What Is Total Quality Control? The Japanese Way (OCLC 11467749). It may have been first coined in
the United Kingdom by the Department of Trade and Industry during its 1983 "National Quality Campaign". Or it
may have been first coined in the United States by the Naval Air Systems Command to describe its quality-
improvement efforts in 1985.

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Demings Chain Reaction
Producing high quality products and services is key for any organization that wishes to stay in business.

Improve Capture the

quality of market with
Stay in
product better Business
and quality and
services lower price

Decrea Provide
Productivity
se Improves jobs and
costs more jobs

Dimensions of Quality
In 1987 David Garvin suggested that there are eight dimensions of quality that can serve as a framework
for strategic analysis. Lets briefly look at each of Garvin's eight dimensions.
Performance- A quality product will perform as expected by the user and as specified by the manufacturer.
If products do not do as buyers expect, users will be disappointed and frustrated. Worse still poor performing
products get negative reviews and lose sales and reputation. Product or Service Characteristics
(Examples: Vehicle Horsepower; Service Processing customer requests.)

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 Features- What additional benefits will be added to the product? Will they be they tangible or non-tangible
benefits? For example this could be after sales service, or guarantees. Some features will be present in all products
but other features will only be found in "quality" products. For example all cars have wheels, steering wheel, gears,
windows and seats but only some cars have heated seats, assisted parking and Bluetooth. Added Features/Secondary
Characteristics (Examples: Vehicle GPS; Service Auto bill pay.)

Reliability- Is the product consistent? Will it perform well over its expected lifetime and perform
consistently? Many brands have developed trust with customers because of their reputation for reliability.
Consistency of Performance over Time
(Examples: Product Mean time before failure; Service Variance in processing time.)

Durability- How durable is your product? Will it last with daily use? Useful Life
(Examples: Product Ability to repair; Service Keeping pace with industry.)

Conformance- Does your product meet with any agreed internal and national specifications? For example
safety regulations and laws.

Serviceability- Is the product easy to service? Does the organization offer enough service support? Ease of
Repair (Examples: Product Design; Service Accessibility, Online.)

Aesthetics- Is the product appealing to the eye? Design is important for many products; the color picked
indicates certain things. Sensory Characteristics Look, feel, etc. (Examples: Product Compared to others;
Service Appearance of location.)

Perceived Quality- What sort of quality perception does the marketing team want to convey in their
marketing message? Will the price charged reflect the quality of the product? What brand name is going to be used
and does this convey any perception of quality? Past Performance (Perceived Quality) (Examples: Company
standing within industry.)

Quality control and Quality Assurance

Quality control, or QC for short, is a process by which entities review the quality of all factors involved in
production.
ISO 9000 defines quality control as "A part of quality management focused on fulfilling quality requirements"
(ISO 9000 is an international standard that many companies use to ensure that their quality assurance system is in
place and effective. Conformance to ISO 9000 is said to guarantee that a company delivers quality products and
services.)
This approach places an emphasis on three aspects

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 1. Elements such as controls, job management, defined and well managed processes, performance and
integrity criteria, and identification of records
2. Competence, such as knowledge, skills, experience, and qualifications
3. Soft elements, such as personnel, integrity, confidence, organizational culture, motivation, team spirit, and
quality relationships.
Controls include product inspection, where every product is examined visually, and often using a stereo
microscope for fine detail before the product is sold into the external market. Inspectors will be provided with lists
and descriptions of unacceptable product defects such as cracks or surface blemishes for example.
The quality of the outputs is at risk if any of these three aspects is deficient in any way.
Quality control emphasizes testing of products to uncover defects and reporting to management who make the
decision to allow or deny product release, whereas quality assurance attempts to improve and stabilize production
(and associated processes) to avoid, or at least minimize, issues which led to the defect(s) in the first place. For
contract work, particularly work awarded by government agencies, quality control issues are among the top reasons
for not renewing a contract.

Quality assurance (QA) is a way of preventing mistakes or defects in manufactured products and avoiding
problems when delivering solutions or services to customers; which ISO 9000 defines as "part of quality
management focused on providing confidence that quality requirements will be fulfilled".
This defect prevention in quality assurance differs subtly from defect detection and rejection in quality control, and
has been referred to as a shift left as it focuses on quality earlier in the process. . QA includes management of
the quality of raw materials, assemblies, products and components, services related to production, and management,
production and inspection processes.
Quality assurance comprises administrative and procedural activities implemented in a quality system so that
requirements and goals for a product, service or activity will be fulfilled. It is the systematic measurement,
comparison with a standard, monitoring of processes and an associated feedback loop that confers error prevention.
This can be contrasted with quality control, which is focused on process output.

A quality assurance system is said to increase customer confidence and a company's credibility, to improve work
processes and efficiency, and to enable a company to better compete with others. Quality assurance was initially
introduced in World War II when munitions were inspected and tested for defects after they were made. Today's
quality assurance systems emphasize catching defects before they get into the final product.

2 Principles of Quality Assurance

"Fit for purpose" The product should be suitable for the intended purpose; and
"right first time" Mistakes should be eliminated
Who determines the Quality ?

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Suitable quality is determined by product users, clients or customers, not by society in general. It is not related to
cost, and adjectives or descriptors such as "high" and "poor" are not applicable.
For example:
A low priced product may be viewed as having high quality because it is disposable, whereas another may be
viewed as having poor quality because it is not disposable.

Quality Planning and Quality Improvement

Quality Planning Is the creation of an actionable plan that defines and ensures quality from concept to delivery.
Quality planning Procedure given by Joseph A Juran
Identify the customers
Determine their needs
Translate those needs into our language
Develop a product that can respond to those need
Optimize the product features to meet our and customer needs

Quality Improvement is the actions taken throughout the organization to increase the effectiveness of activities and
processes to provide added benefits to both the organization and its customers.
A technique for quality improvement is to evaluate progress regularly. This requires setting goals ahead of time to
know by which standards you will make judgments. The evaluation should include managers looking at sales
numbers, product life cycles, and the effectiveness of marketing campaigns to ensure there is not too much waste
and profits are where they should be. Proponents of quality management will often get feedback from lower-level
employees as well. Collect information from those who deal with customers on a regular basis for insight on what
clients expect.
The ISO definition of quality improvement states that it is the actions taken throughout the organization to increase
the effectiveness of activities and processes to provide added benefits to both the organization and its customers. In
simple terms, quality improvement is anything which causes a beneficial change in quality performance.
There are two basic ways of bringing about improvement in quality performance. One is by better control and
the other by raising standards.

10 STEPS of quality improvement

1. Build awareness of the need and opportunity for improvement
2. Set goals for improvement
3. Organise to reach the goals
4. Provide training
5. Carry out projects to solve problem
6. Report progress

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7. Give recognition
8. Communication result
9. Keep score
10. Maintain momentum by making annual

Strategic planning, Quality management and Total quality management

Strategic Planning is a process an organization uses to prioritize and focus the efforts of the company as well as the
implementation of a plan. A company uses strategic planning to predict and anticipate changes in the business
environment and position the company to respond. . Companies must develop an edge in the marketplace that
differentiates the organization from all other businesses. An environment and reputation for customer value and
quality is one approach to meeting the demands of customers.

When an organization chooses to make quality a major competitive edge, it becomes the central issue in strategic
planning. This is especially reflected in vision, mission and policy guidelines of an organization.
An essential idea behind strategic planning is that the product is customer value rather than a physical product or
service. This feat cannot be achieved unless an organization rates a culture off quality and no strategy and plan can
be worthwhile unless it is carefully implemented.

Quality Management is the act of overseeing all activities and tasks needed to maintain a desired level of
excellence. This includes creating and implementing quality planning and assurance, as well as quality control and
quality improvement.

Total Quality Management (TQM) is a comprehensive and structured approach to organizational management that
seeks to improve the quality of products and services through ongoing refinements in response to continuous
feedback.
It is a business philosophy that moves the responsibility of quality assurance away from designated quality managers
and instead involves all members of a company. This philosophy encourages closer relationships between suppliers
and manufacturers and customers. It also indicates that company processes should continually change to meet the
needs of the market and the culture at large.

Quality Costs

Prior to its introduction, the general perception was that higher quality requires higher costs, either by
buying better materials or machines or by hiring more labor. Furthermore, while cost accounting had evolved to

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categorize financial transactions into revenues, expenses, and changes in shareholder equity, it had not attempted to
categorize costs relevant to quality, which is especially important given that most people involved in manufacturing
never set hands on the product.[3] By classifying quality-related entries from a company's general ledger,
management and quality practitioners can evaluate investments in quality based on cost improvement and profit
enhancement.
Quality costs or cost of quality is a means to quantify the total cost of quality-related efforts and
deficiencies.
The cost of quality isnt the price of creating a quality product or service.
Every time work is redone, the cost of quality increases. Obvious examples include:
The reworking of a manufactured item.
The retesting of an assembly
The rebuilding of a tool
The correction of a bank statement
The reworking of a service, such as the reprocessing of a loan operation or the replacement of a food order in a
restaurant

The cost of quality is generally classified into four categories:

1. External Failure Cost
2. Internal Failure Cost
3. Inspection (appraisal) Cost
4. Prevention Cost

1. External Failure Cost: Cost associated with defects found after the customer receives the product or
service. Example: Processing customer complaints, customer returns, warranty claims, product recalls.
2. Internal Failure Cost: Cost associated with defects found before the customer receives the product or
service. Example: Scrap, rework, re-inspection, re-testing, material review, material downgrades
3. Inspection (appraisal) Cost: Cost incurred to determine the degree of conformance to quality requirements
(measuring, evaluating or auditing). Example: Inspection, testing, process or service audits, calibration of
measuring and test equipment.
4. Prevention Cost: Cost incurred to prevent (keep failure and appraisal cost to a minimum) poor quality. Example:
New product review, quality planning, supplier surveys, process reviews, quality improvement teams, education and
training.
Higher quality means higher cost: Quality attributes such as performance and features cost more in terms of
labor, material, design, and other costly resources. The additional benefits from improved quality do not compensate
for the additional expenses.

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 The cost of improving quality is less than the resultant savings: Deming promoted this view, which is still
widely accepted in Japan. The savings result from less rework, scrap, and other direct expenses related to defects.
This paved the way of continuous process improvement among Japanese firms.
Quality costs are those incurred in excess of those that would have been incurred if product were built or service
performed exactly right the first time:
This view is held by adherents of the TQM philosophy. Costs include not only those that are direct, but also
those resulting from lost customers, lost market share, and many hidden costs and foregone opportunities not
identified by modern cost accounting systems.

Total Quality Costs

As the figure below shows, quality costs are the total of the cost incurred by:
Investing in the prevention of nonconformance to requirements.
Appraising a product or service for conformance to requirements.
Failing to meet requirements.
Quality Costsgeneral description

Prevention Costs
The costs of all activities specifically designed to prevent poor quality in products or services.
Examples are the costs of:
New product review
Quality planning
Supplier capability surveys
Process capability evaluations
Quality improvement team meetings
Quality improvement projects
Quality education and training

Appraisal Costs
The costs associated with measuring, evaluating or auditing products or services to assure conformance to
quality standards and performance requirements.
These include the costs of:
Incoming and source inspection/test of purchased material
In-process and final inspection/test
Product, process or service audits
Calibration of measuring and test equipment
Associated supplies and materials

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 Failure Costs
The costs resulting from products or services not conforming to requirements or customer/user needs.
Failure costs are divided into internal and external failure categories.
Internal Failure Costs
Failure costs occurring prior to delivery or shipment of the product, or the furnishing of a service, to the customer.

Examples are the costs of:

Scrap
Rework
Re-inspection
Re-testing
Material review
Downgrading

External Failure Costs

Failure costs occurring after delivery or shipment of the product and during or after furnishing of a
service to the customer.

Examples are the costs of:

Processing customer complaints
Customer returns
Warranty claims

Product recalls

Total Quality Costs:

The sum of the above costs. This represents the difference between the actual cost of a product or service
and what the reduced cost would be if there were no possibility of substandard service, failure of products or defects
in their manufacture.

Total Quality Management (TQM) is known for reducing costs by reducing waste and improving
efficiency. TQM is also known for improving effectiveness, flexibility, efficiency, and competitiveness. The process
must be a continuous way of life, and the entire company should work towards improvement in everything that they
do. The TQM process involves several steps that you should be aware of to reduce manufacturing costs:

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1. Pursue New Strategic Thinking

When you pursue new strategic thinking, you can come up with ways to reduce manufacturing costs without
investing large sums of cash. Strategic thinking is expected of every company that engages in quality management.

2. Know Your Customers

You must know your customers. If you know your customers, you know what matters to them. You can reduce costs
by using waste reduction techniques without sacrificing quality.

3. Concentrate on Prevention and Not Correction

Most manufacturers seek to prevent problems from occurring rather than correcting them later. This is a more cost-
effective approach.

4. Develop a Continuous Improvement Strategy

A continuous improvement strategy is always a good idea to have in any company, but your employees have to
follow it.

5. Reduce Chronic Waste

Reduction of chronic waste is something that can reduce costs in any manufacturing facility. Companies with a
chronic waste reduction strategy are typically more successful financially because they dont waste money on
excess.

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6. Use a Balanced Approach

Use a balanced approach in order reduce costs within an organization. If your approach is balanced, your staff will
not be exasperated with excess waste or costs, or with unreasonable strategies to reduce excess wastes or costs.

7. Use Structured Methodology for Process Improvement

A structured methodology for process improvement has been proven to reduce waste. When costs are reduced,
companies can reinvest in their product or service. This makes the company more efficient. With efficiency, products
and services improve also. Its within the best interest of the company to use the structured methodology for process
improvement.

8. Learn to apply it to All Functions

Ensure that your employees know how to apply the principles to all functions to reduce waste and costs within the
workplace. Its best to take classes to master these principles to maximize the effects of the principles.

9. Learn to Set Actual Customer Requirements

Setting customer expectations and requirements are essential to the success of the waste and cost reduction
programs. Without knowing customer requirements, you will not deliver a product that is effective in eliminating
waste and cost. Consider this before revamping your system.

Companies such as Toyota Motor Company and Motorola have all learned to use TQM to reduce
manufacturing costs. Because of their dedication to the process, they have learned how to produce cost effective
products that are durable and cost effective. More companies are recognizing why they should adopt these principles
to ensure they deliver a product that is competitive and affordable for the public. Devise a strategy for quality
management to reduce manufacturing costs.

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Definition and Explanation of Quality Costs:

A product that meets or exceeds its design specifications and is free of defects that mar its appearance or
degrade its performance is said to have high quality of conformance. Note that if an economy car is free of defects,
it can have a quality of conformance that is just as high as defect-free luxury car. The purchasers of economy
cars cannot expect their cars to be as opulently as luxury cars, but they can and do expect to be free of defects.

Preventing, detecting and dealing with defects cause costs that are called quality costs or costs of quality. The use
of the term "quality cost" is confusing to some people. It does not refer to costs such as using a higher grade leather
to make a wallet or using 14K gold instead of gold plating in jewelry. Instead the term quality cost refers to all of the
costs that are incurred to prevent defects or that result from defects in products.

Quality costs can be broken down into four broad groups. These four groups are also termed as four (4)
types of quality costs. Two of these groups are known as prevention costs and appraisal costs. These are incurred in
an effort to keep defective products from falling into the hands of customers. The other two groups of costs are
known as internal failure costs and external failure costs. Internal and external failure costs are incurred because
defects are produced despite efforts to prevent them therefore these costs are also known as costs of poor quality.

The quality costs do not just relate to just manufacturing; rather, they relate to all the activities in a company from
initial research and development (R & D) through customer service. Total quality cost can be quite high unless
management gives this area special attention.

Four types of quality cost are briefly explained below:

Prevention Costs:

Generally the most effective way to manage quality costs is to avoid having defects in the first place. It is
much less costly to prevent a problem from ever happening than it is to find and correct the problem after it has
occurred. Prevention costs support activities whose purpose is to reduce the number of defects. Companies employ
many techniques to prevent defects for example statistical process control, quality engineering, training, and a
variety of tools from total quality management (TQM).

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 Prevention costs include activities relating to quality circles and statistical process control.Quality
circles consist of small groups of employees that meet on a regular basis to discuss ways to improve quality. Both
management and workers are included in these circles.

Statistical process control is a technique that is used to detect whether a process is in or out of control. An
out of control process results in defective units and may be caused by a miscalibrated machine or some other factor.
In statistical process control, workers use charts to monitor the quality of units that pass through their workstations.
With these charts, workers can quickly spot processes that are out of control and that are creating defects. Problems
can be immediately corrected and further defects prevented rather than waiting for an inspector to catch the defect
later.

Some companies provide technical support to their suppliers as a way of preventing defects. Particularly
in just in time (JIT) systems, such support to suppliers is vital. In a JIT system, parts are delivered from suppliers
just in time and in just the correct quantity to fill customer orders. There are no stockpiles of parts. If a defective part
is received from a supplier, the part cannot be used and the order for the ultimate customer cannot be filled in time.
Hence every part received from suppliers must be free from defects. Consequently, companies that use just in time
(JIT) often require that their supplier use sophisticated quality control programs such as statistical process
control and that their suppliers certify that they will deliver parts and materials that are free of defects.

Appraisal Costs:

Any defective parts and products should be caught as early as possible in the production
process. Appraisal costs, which are sometimes called inspection costs, are incurred to identify defective products
before the products are shipped to customers. Unfortunately performing appraisal activates doesn't keep defects
from happening again and most managers realize now that maintaining an army of inspectors is a costly and
ineffective approach to quality control.

Employees are increasingly being asked to be responsible for their own quality control. This approach
along with designing products to be easy to manufacture properly, allows quality to be built into products rather than
relying on inspections to get the defects out.

Internal failure Costs:

Failure costs are incurred when a product fails to conform to its design specifications. Failure costs can be
either internal or external. Internal failure costs result from identification of defects before they are shipped to

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customers. These costs include scrap, rejected products, reworking of defective units, and downtime caused by
quality problem. The more effective a company's appraisal activities the greater the chance of catching defects
internally and the greater the level of internal failure costs. This is the price that is paid to avoid incurring external
failure costs, which can be devastating.

External Failure Costs:

When a defective product is delivered to customer, external failure cost is the result. External failure
costs include warranty, repairs and replacements, product recalls, liability arising from legal actions against a
company, and lost sales arising from a reputation for poor quality. Such costs can decimate profits.

In the past, some managers have taken the attitude, "Let's go ahead and ship everything to customers, and
we'll take care of any problems under the warranty." This attitude generally results in high external failure costs,
customer ill will, and declining market share and profits.

External failure costs usually give rise to another intangible cost. These intangible costs are hidden costs
that involve the company's image. They can be three or four times greater than tangible costs. Missing a deadline or
other quality problems can be intangible costs of quality.

Internal failure costs, external failure costs and intangible costs that impair the goodwill of the company occur due to
a poor quality so these costs are also known as costs of poor quality by some persons.

Examples of four types of quality cost are given below:

Prevention Costs Internal Failure Costs

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Systems development
Quality engineering
Quality training
Quality circles
statistical process control
Supervision of prevention activities
Quality data gathering, analysis, and reporting
Quality improvement projects
Technical support provided to suppliers
Audits of the effectiveness of the quality system
Appraisal Costs
Test and inspection of incoming materials
Test and inspection of in-process goods
Final product testing and inspection
Supplies used in testing and inspection
Supervision of testing and inspection activities
Depreciation of test equipment
Maintenance of test equipment
Plant utilities in the inspection area
Field testing and appraisal at customer site
Net cost of scrap
Net cost of spoilage
Rework labor and overhead
Re-inspection of reworked products
Retesting of reworked products
Downtime caused by quality problems
Disposal of defective products
Analysis of the cause of defects in production
Re-entering data because of keying errors
Debugging software errors
External Failure Costs
Cost of field servicing and handling complaints
Warranty repairs and replacements
Repairs and replacements beyond the warranty period
Product recalls
Liability arising from defective products
Returns and allowances arising from quality problems
Lost sales arising from a reputation for poor quality.

JURANS MODEL OF OPTIMUM QUALITY COSTS

Jurans model for quality costs is illustrated in fig. 1.1 the quality level increases, when the quality the number of
defects in the product service reduces. The cost of non-conformance (failure cost) decreases as quality level
improves. The quality level increases when the cost of conformance (sum of prevention and appraisal cost)
increases. But the figure indicates that 100 percent quality is very expensive. The total quality cost is the sum of
both. The lowest tip is the optimal cost. The figure gives a feeling that we must put up with some defects.

Figure 1.1
JURANS MODEL OF OPTIMUM COSTS

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ANALYSIS FOR COQ IMPROVEMENT
Management should use the COQ data to identify and prioritize improvement opportunities. The first priority is to
eliminate external failures. Thereafter inspection can be reduced gradually. By spending more money on prevention
a typical case study is given in table 1.1

Table 1.1
COST OF QUALITY AS A PERCENTAGE OF TOTAL MANUFACTURING COSTS

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During 1997, increasing appraisal without increasing prevention increased internal failures but reduced external
failures. However, the total COQ did not change. This is certainly an improvement because external failures affect
business very badly. During 1997, the organization decided to get into ISO 9000 and focus on prevention. During
1999 when prevention was stepped up, keeping the same level of inspection, the failures overall COQ came down.
In 1999, the CEO decided to adapt TQM. Vigorous efforts were made to improve quality further and di things right,
the first time and every time. Hence in the year 2001, appraisal could be brought down drastically. However, the
result is much better as the table indicates. Now both the internal failures and external failures are quite low. Efforts
should be made in the same direction so that overall COQ reduces further. Thus, TQM is aimed at enabling the
lowest cost of quality.

ANALYSIS OF EXTERNAL FAILURE COSTS

Similarly an analysis if an external failure was made by the organization. The pie chart below indicates the
distribution of causes of external failures
Figure 1.2

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The above pie chart gives the priorities for action to be taken as given below:
1. Improve quality of soldering
2. Eliminate the cause of failure of diode D1
3. Estimate the correct rating of fuse and analyze the causes of failure of fuse
If all the above failures can be eliminated then the failure cost will reduce to about 10%.

ANALYSIS OF INTERNAL FAILURE COSTS

From the data available, the causes for internal failure costs were analyze and plotted as a Pareto Diagram.
Figure 1.3

A. Wrong component placed

B. Soldering failure
C. Other causes
A major cause of internal failure was insertion of wrong components in PCB. The process was studied and found
that the lighting in assemble line needed to improvement and the operators needed training. This analysis and the
external failure analysis pointed to problems in the soldering process. A thorough study was required to reduce
defects caused by poor soldering.

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Thus, it is very important to analyze the data more closely to derive benefits to the organization.
The COQ analysis gives the following benefits to the organization.
Brings out the magnitude of the quality problem in the organization. It further leads to establishing goals
for the organization to improve quality.
Enables cost reduction owing to steps taken for improvement based on analysis.
Enables taking steps to improve customer satisfaction.
Displaying the results motivates employees tom improve further.

Leadership
In the book of James MacGregor Burns about Leadership, he describes a leader as one who instills purposes
and not one who controls by brute force. A leader strengthens and inspires the followers to accomplish shared
goals. Leaders shape, promote, protect and exemplify the organizations values.
The process of social influence in which one person can enlist the aid and support of others in the
accomplishment of the common task (Chemers MM 2002)

Characteristics of Quality Leaders

There are 12 behaviors or characteristics that successful quality leaders demonstrate. These are as follows:
1. They give priority attention to external and internal customers and their needs. Leaders place themselves in
the customers shoes and service their needs from that perspective. They continually evaluate the customers
changing requirements.
2. They empower, rather than control, subordinates. Leaders have trust and confidence in the performance of
their subordinates. They provide the resources, training and work environment to help subordinates do their
jobs. However, the decision to accept responsibility lies with the individual.
3. They emphasize improvement rather than maintenance. Leaders use the phrase If it isnt perfect, improve it
rather than If it aint broke, dont fix it. There is always room for improvement, even if the improvement is
small. Major breakthroughs sometimes happen, but it is the little ones that keep the continuous process
improvement on a positive track.
4. They emphasize prevention. An ounce of prevention is worth a pound of cure is certainly true. It is also
true that perfection can be the enemy of creativity. We cannot always wait until we have created the perfect
process or product. There should be a balance between preventing problems and developing better, but no
perfect, processes.
5. They encourage collaboration rather than competition. When functional areas, departments or work groups
are in competition, they may find subtle ways of working against each other or withholding information.
Instead, there should be collaboration among and within units.
6. They train and coach, rather than direct and supervise. Leaders know that the development of human resource
is a necessity. As coaches, they help their subordinates learn to do a better job.

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 7. They learn from problems. When a problem exists, it is treated as an opportunity rather than something to be
minimized or covered up. What caused it? and How can we prevent it in the future? are the questions
quality leaders ask.
8. They continually try to improve communications. Leaders continually disseminate information about the
TQM effort. They make it evident that TQM is not just a slogan.
Communication is two way-- ideas will be generated by people when leaders encourage them and act upon
them. For example, on the eve of Operation Desert Storm, General Colin
Powell solicited enlisted men and women for advice on winning the war. Communication is the glue that holds
a TQM organization together.
9. They continually demonstrate their commitment to quality. Leaders walk their talktheir actions, rather than
their words, communicate their level of commitment. They let the quality statements be their decision-making
guide.
10. They choose suppliers on the basis of quality, not price. Suppliers are encouraged to participate in project
teams and become involved. Leaders know that quality begins with quality materials and the true measure is the
lifecycle cost.
11. They establish organizational systems to support the quality effort. At the senior management level, a quality
council is provided and at the first-line supervisor level, work groups and project teams are organized to
improve the process.
12. They encourage and recognize team effort. They encourage, provide recognition to and reward individuals
and teams. Leaders know people like to know that their contributions are appreciated and important. This action
is one of the leaders most powerful tools.

Leadership Concepts

The Seven Habits of Highly Effective People by Stephen R. Covey

Habit 1. Be Proactive
Being proactive means taking responsibility for your life-- the ability to choose the responses to a situation.
Proactive behavior is the outcome of conscious choice based on values whereas reactive behavior is based on
feelings. Reactive people let circumstances, conditions or their environment tells them how to respond.
Proactive people let carefully thought-about, selected and internalized values tell them how to respond. It is not
what happens to us but our response that differentiates the two behaviors. No one can make you miserable
unless you choose to let him or her.
The language we use is a real indicator of our behavior. Comparisons are given below.

Reactive Proactive
There is nothing I can do. Let us look at our alternatives.

GROUP I 21
 She makes me so mad. I control my own feelings.
I have to do that. I will choose an appropriate response.
I cannot. I choose.
I must. I prefer.

Habit 2. Begin with the End in Mind

The most fundamental application of this habit is to begin each day with an image, picture or paradigm of the
end of your life as your frame of reference. Each part of your life can be examined in terms of what really
matters to you-- a vision of your life as a whole.
All things are created twice-- there is a mental or first creation and a physical or second creation to all things. To
build a house you first create a blueprint and then construct the actual house.
You create a speech on paper before you give it. If you want to have a successful organization, you begin with a
plan that will produce the appropriate end. Thus, leadership is the first creation and management is the second.
Leadership means doing the right things and management means doing things right.
In order to begin with the end in mind, develop a personal philosophy or creed. Start by considering the
examples mentioned below:
Never compromise with honesty
Remember the people involved
Maintain a positive attitude
Exercise daily
Keep a sense of humor
Do not fear mistakes
Facilitate the success of subordinates
Seek divine help
Read a leadership book monthly
By centering our lives on correct principles, we create a solid foundation for the development of the life support
factors of security, guidance, wisdom and power. Principles are fundamental truths. They are tightly interwoven
threads running with exactness, consistency, beauty and strength through the fabric of life.

Habit 3. Put First Things First

Habit one says, Youre the creator. You are in charge. Habit two is the first creation and is based on
imagination-- leadership based on values. Habit three is practicing self-management and requires habits one and
two as prerequisites. It is the day-by-day, moment-by-moment management of your time.

The time management matrix is shown in table

Urgent Not Urgent

GROUP I 22
 Important
I II
Crises, firefighting Prevention, PC
Pressing problems Relationship building
Deadline driven projects Recognizing new
Not

III IV
Interruptions, pressing Trivia, busy work
matters Time wasters
Important

Some mail, calls, report Pleasant activities

Urgent means it requires immediate attention and important has to do with results that contribute to your
mission, goals and values. Effective, proactive people spend most of their time in quadrant II, thereby reducing
the time spent in quadrant I. Four activities are necessary to be effective. First, write down your key roles for
the week (such as research manager, United Way Chairperson and parent). Second, list your objectives for each
role using many quadrant II activities. These objectives should be tied to your personal goals or philosophy
developed in habit 2. Third, schedule time to complete the objectives. Fourth, adapt the weekly schedule to your
daily activities.

Habit 4. Think Win-Win

Win-win is a frame of mind and heart that constantly seeks mutual benefit in all human interactions. Both sides
come out ahead. In fact, the end result is usually a better way. If win-win is not possible, then the alternative is
no deal. It takes great courage as well as consideration to create mutual benefits, especially if the other party is
thinking win-lose.
Win-win embraces five interdependent dimensions of life-- character, relationships, agreements, systems and
processes. Character involves the following traits:
Integrity
Maturity-- a balance between being considerate of others and the courage to express feelings
Abundance mentality (there is plenty out there for everyone)
Relationship means that the two parties trust each other and are deeply committed to win-win.
Agreements require the five elements of desired results, guidelines, resources, accountability and consequences.
Win-win agreements can only survive in a system that supports it-- you cannot talk win-win and reward win-
lose. In order to obtain win-win, a four-step process is needed. It is as follows:
1. See the problem from the other viewpoint.
2. Identify the key issues and concerns.
3. Determine acceptable results.
4. Seek possible new options to achieve those results.

Habit 5. Seek First to Understand, then to be Understood

Seek first to understand involves a paradigm shift since we usually try to be understood first.

GROUP I 23
 Empathic listening is the key to effective communication. It focuses on learning how the other person sees the
world, how they feel etc. The essence of empathic listening is not that you agree with someone. It is that you
fully and deeply understand the person, emotionally as well as intellectually. Next to physical survival is the
greatest need of a human being of psychological survival-- to be understood, affirmed, validated and
appreciated.
The second part of the habit is to be understood. Covey uses three sequentially arranged Greek words-- ethos,
pathos and logos. Ethos is your personal credibility or character, pathos is the empathy you have with the other
persons communication and logos is the logic or reasoning part of your presentation.

Habit 6. Synergy
Synergy means that the whole is greater than the parts. Together, we can accomplish more than any of us can
accomplish alone. This can best be exemplified by the musical group The Beatles. They as a group created
more music than each individual created after the group broke up. The first five habits build toward habit six. It
focuses the concept of win-win and the skills of empathic communication on tough challenges that bring about
new alternatives which did not exist before. Synergy occurs when people abandon their humdrum presentations
and win-lose mentality and open themselves up to creative cooperation. When there is a genuine understanding,
people reach solutions that are better than they could have achieved acting alone.

Habit 7. Sharpen the Saw (Renewal)

Habit seven is taking time to sharpen the saw so that it will cut faster. It is personal PC-- preserving and
enhancing the greatest asset you have, which is you. It is renewing the four dimensions of your nature--
physical, spiritual, mental and social/emotional. All four dimensions of your nature should be used regularly in
wise and balanced ways. Renewing the physical dimension means following good nutrition, rest and relaxation,
and regular exercise. The spiritual dimension is your commitment to your value system. Renewal comes from
prayer, meditation and spiritual reading. The mental dimension is continuing to develop your intellect through
reading, seminars and writing. These three dimensions require that time be set aside-- they are quadrant II
activities. The social and emotional dimensions of our lives are tied together because our emotional life is
primarily, but not exclusively, developed out of and manifested in our relationship with others. While this
activity does not require time, it does require exercise.
In his book, Covey states that correct principles are natural laws and that God, the Creator and the Father of us
all, is the source of them and also the source of our conscience. He submits that to the degree people live by this
inspired conscience, they will grow to fulfill their natures; to the degree that they do not, they will not rise
above the animal plane.

Definition of Total Quality Management (TQM)

GROUP I 24
 Total Quality Management (TQM) refers to a quality emphasis that encompasses the entire organization, from
supplier to customer. TQM stresses a commitment by management to have a continuing companywide drive
toward excellence in all aspects of products and services that are important to the costumers.
The Demings philosophy
Demings philosophy is given in 14 points. Most of these points were given in a seminar for 21 presidents of leading
Japanese industries in 1950. The rest were developed and the original ones modified over a period of three decades.
What has to be clearly appreciated before any attempts are made at implementing Deming's philosophy is the level
of corporate cultural change required. The quality initiative has to start at the top and many traditional views have to
be substantially altered. A management commitment to a complete transformation of the current (bad) practices is
absolutely necessary for survival and competitive success in this new economic age. This necessity is revealed by
almost all of Deming's fourteen points.

1. Create Constancy of Purpose for Continual Improvement of Product and Service

Management should demonstrate constantly their commitment to this statement. Set the course
today in order to be in business tomorrow, to become more competitive and to provide more jobs. Provide
for long-term needs rather than short-term profits. Stability combined with innovation leaves the consumer
more satisfied and the manufacturer assured both of new customers and of the old customers willingness to
return.

2. Learn and Adopt the New Philosophy

A change is necessary in the old management methods which are no longer effective for today's
business environment. Without innovation you can never lead. If you just try to meet the competition, you
will not survive in the new economic age. We can no longer live in the days when quantity was more
important than quality. Top management and everyone should learn the new philosophy. Organizations
should seek never-ending improvement and refuse to accept nonconformance. Customer satisfaction is the
number one priority because dissatisfied customers will not continue to purchase nonconforming products
and services. The organization should concentrate on defect prevention rather than defect detection. By
improving the process, the quality and productivity will improve.

3. Understand the Purpose of Inspection

Management should understand that the purpose of inspection is to improve the process and
reduce its cost. For most of the parts, mass inspection is costly and unreliable. Where appropriate, it should
be replaced by never-ending improvement using statistical techniques. Statistical evidence is required of
self and supplier. Every effort should be made to reduce and then eliminate acceptance sampling. Mass
inspection is managing for failure and defect prevention is managing for success.

4. Stop Awarding Business based on Price Alone

The organization should stop awarding business based on the low bid alone, because price has no
meaning without quality. The goal is to have single suppliers for each item to develop a long-term
relationship of loyalty and trust, thereby providing improved products and services. Purchasing agents

GROUP I 25
 should be trained in statistical process control and require it from suppliers. They should follow the
materials throughout the entire life cycle in order to examine how customer expectations are affected and
provide feedback to the suppliers regarding the quality. As Walter Shewhart says, price has no meaning
unless a measure of quality is purchased at the same time.

5. Improve Constantly and Forever the System of Production and Service

Management should take more responsibility for problems by actively finding and correcting them
so that quality and productivity are continually and permanently improved and costs are reduced. The focus
is on preventing problems before they happen. Variation is expected, but there should be a continual
striving for its reduction using control charts. Responsibilities are assigned to teams to remove the causes of
problems and continually improve the process.

6. Institute Training on the Job

Each employee should be oriented to the organizations philosophy of commitment to never-
ending improvements. Management should allocate resources to train employees to perform their jobs in
the best manner possible. Everyone should be trained in statistical methods and these methods should be
used to monitor the need for further training. A continuous program of on-the-job training needs to be
instituted and this should include managers. Training and education are the cornerstones of greater
consistency. Investment in proper training of all new employees will ensure that the newcomers will
immediately start contributing to their full capacity, knowing exactly what is expected from them.
The majority of the techniques needed are easy to learn and implement immediately. They can
provide a basis for action, indicate clearly what the next step should be and supply the necessary experience
for the future. They can also provide the basis of what Deming calls a system of profound knowledge, a
necessity in the training curriculum of any manager. The four ingredients of the system of profound
knowledge which are necessary to learn and practice are as follows:

a. Knowledge of (or Appreciation of) the System and the Theory of Optimization
Emphasis should be laid on the optimization of the system rather than the sub-optimization of the
subsystems. According to Deming, any system that results in an I win, you lose structure is less than
optimal. The aim should be for everybody to gain (win-win) in the long run company, employees,
customers, suppliers, shareholders, the community and the environment. Proper appreciation of the system
can only come from adequate understanding of the capability of the system and that, in turn, can only come
from the second ingredient.

b. Some Knowledge of Statistical Theory (or the Theory of Variation)

Adequate knowledge of uncertainty and its different sources (special and common) will reveal
whether the system is stable or not, what the system's controlled and uncontrolled components are and how
stability can be attained. Then the capabilities of the system can be assessed and reliable predictions made.
All this can only be achieved with the aid of statistical theory, which brings us to the need for the third
ingredient.

c. Some Theory of Knowledge

GROUP I 26
 There is no knowledge without prediction and theory. Experience may provide the answer, but the
question can only come from theory. Experience and example are of no help in management unless studied
with the aid of theory. Transformation can come with the aid of theory, which can also teach the
management about the psychology of change and the difficulties associated with it. This reveals the need
for the fourth ingredient.

d. Some Knowledge of Psychology

When it comes to managing people, one needs some knowledge of psychology. It can help one to
understand people and the interactions between one person and the other (all people are different) and
between a person and the system. This knowledge, like any other associated with the system of profound
knowledge, can only be attained through appropriate training. As Deming says, We don't install
Knowledge - I wish we could. Indeed, there is no substitute for knowledge.

7. Adopt and Institute Modern Methods of Leadership

In this new economic age, supervisors should be more than just overseers. Modern leadership
means continually ensuring that quality, productivity and the performance of people and processes are
improved. It requires awareness and respect for differences between individuals. Variety among different
people should be regarded as an asset and taken advantage of rather than as an inhibiting factor. Their
various abilities should be identified and properly utilized for the benefit of the company. Today's leaders
should do the following:
Lead and motivate by example rather than fear
Teach and counsel rather than judge and supervise
Use mistakes to learn from rather than to blame
Understand the difference between random and special variation (so that people in need of
special help are recognized)
Promote teamwork and mutual trust
Provide innovative methods to accomplish the improvement

8. Drive Out Fear and Create Trust and a Climate for Innovation
Management should encourage open, effective communication and teamwork. Fear is caused by a
general feeling of being powerless to control important aspects of ones life. It is caused by a lack of job
security, possible physical harm, performance appraisals, and ignorance of organization goals, poor
supervision and not knowing the job. Driving fear out of the workplace involves managing for success.
Management can begin by providing workers with adequate training, good supervision and proper tools to
do the job, as well as removing physical dangers. When people are treated with dignity, fear can be
eliminated and people will work for the general good of the organization. In this climate, they will provide
ideas for improvement.

9. Break Down Barriers between Departments and Individuals

Management should optimize the efforts of teams, work groups and staff areas to achieve the aims
and purposes of the organization. Barriers exist internally among levels of management, among
departments, within departments and among shifts. Externally, they exist between the organization and its
customers and suppliers. These barriers exist because of poor communication, ignorance of the

GROUP I 27
 organizations mission, competition, fear and personal grudges or jealousies. To break down the barriers,
management will need a long-term perspective. All the different areas should work together. Attitudes need
to be changed, communication channels opened, project teams organized and training in teamwork
implemented. Multifunctional teams, such as used in concurrent engineering, are an excellent method.

10. Eliminate the Use of Slogans, Posters and Exhortations for the Work Force
Exhortations that ask for increased productivity without providing specific improvement methods
can handicap an organization. They do nothing but express managements desires. They do not produce a
better product or service because the workers are limited by the system. Goals should be set that are
achievable and are committed to the long-term success of the organization. Improvements in the process
cannot be made unless the tools and methods are available.
Eliminate slogans which demand zero defects and new levels of excellence without providing the
methods. People should be given the means to work smarter, not harder. Arbitrary objectives not
accompanied by a road map to help in their accomplishment can be counterproductive.
If there are problems of high defect rates and low productivity, slogans such as Zero defects,
Do it right first time and Increase productivity by 10% are not going to achieve anything. They never
helped anyone to do a better job. Most of the causes of low quality and unsatisfactory productivity are
beyond the power of the workforce. They belong to the system and can be dealt with by changing
management practices. How, for example, can somebody make something right first time if the incoming
material, probably purchased on the basis of its (low) price tag, is defective, or if the equipment is in need
of better maintenance and calibration? Verbally insisting that somebody should be a quality worker is at
best patronizing and at worst the cause of frustration and resentment, especially when it is obvious that the
insistence does not originate from a quality manager.

11. Eliminate Numerical Quotas for the Work Force

Instead of quotas, management should learn and institute methods for improvement. Quotas and
work standards focus on quantity rather than quality. They encourage poor workmanship in order to meet
their quotas. Quotas should be replaced with statistical methods of process control. Management should
provide and implement a strategy for never-ending improvements and work with the work force to reflect
the new policies. Instead of management by objective, management should learn the capabilities of the
processes and how to improve them. Internal goals set by management, without a method, are a burlesque.
Management by numerical goal is an attempt to manage without knowledge of what to do.
According to Deming, Management by numerical goal is an attempt to manage without
knowledge of what to do, and in fact is usually management by fear. Indeed, it would be better if MBO or
MBR (management by results) were replaced with MBIO-- management by improvement objectives. If
there is an objective to be set, it should be that of constancy of purpose for continuous quality improvement
of products, processes and services, an objective which is not specific in detail in the form of a numerical
target in isolation. This objective should always be a real consensus rather than a top-down mandate. It
should be supported by continuous training and sustained cooperation involving everybody from the top
manager down.

GROUP I 28
 12. Remove Barriers that Rob People of Pride of Workmanship
Loss of pride in workmanship exists throughout organizations because of the following reasons:
a. Workers do not know how to relate to the organizations mission.
b. They are being blamed for system problems.
c. Poor designs lead to the production of junk.
d. Inadequate training is provided.
e. Punitive supervision exists.
f. Inadequate or ineffective equipment is provided for performing the required work.

Restoring pride will require a long-term commitment by management. When workers are proud of
their work, they will grow to the fullest extent of their job. Management should give employees operational
job descriptions, provide the proper tools and materials, and stress the workers understanding of their role
in the total process. By restoring pride, everyone in the organization will be working for the common good.
A barrier for people on salary is the annual rating of performance.

13. Encourage Education and Self-Improvement for Everyone

What an organization needs are people who are improving with education. A long-term
commitment to continuously train and educate people should be made by management. Demings 14
points and the organizations mission should be the foundation of the education program. Everyone should
be retrained as the organization requirements change to meet the changing environment. Encourage
continual training to keep up with new developments, changes in product design and machinery, and
innovative techniques. Things change fast. Managers should be aware of this change and should themselves
be appropriately trained to take advantage of it. Otherwise, the competitor will. Self-improvement for
everyone should always be encouraged and ever- broadening opportunities for the workforce should always
be provided.

14. Take Action to Ensure Top Managements Permanent Commitment to Accomplish the
Transformation
Management has to accept the primary responsibility for the never-ending improvement of the
process. It has to create a corporate structure to implement the philosophy. A cultural change is required
from the previous business as usual attitude. Management should be committed, involved and accessible
if the organization is to succeed in implementing the new philosophy.

Ten (10) Strategies for Top Management

1. Proactive management

The leaders have to be proactive. They have to foresee what will happen in the future and take advance
action to prevent the occurrence of the problems as prevention is always better than cure. Being proactive may be
considered to be an in-born quality, but it can be developed by anybody who is willing to put in that extra effort.

2. Adventurous and bold change management

The essential requirements of change and change management are:

GROUP I 29
 Be Adventurous. This calls for adventurous decision-making and high self-esteem among the senior management.
They should visualize the improvements needed and make every effort to achieve it.

Be bold the other perquisite for change management are boldness, self- confidence or self-esteem. Boldness is very
essential for making bold decisions for improvement. It may be required for many purposes from fighting lethargy
among employees to guarding against vested interested

3. Do it right first time (dirft)

This concept was advocated by Philip Crosby. Croby's approach focuses on doing things right the
first time and every time. There is no place in his philosophy for differing levels of quality or categories of quality.
He believes there should be no reason for planning and investing in strategies that are designed in case something
does not conform to requirements and goes wrong. He stresses that the way to manage quality is by prevention, not
detection and testing. To Crosby, any product that falls within its design specifications is a quality product. Crosby
addresses the need to change management's perception of and attitudes about quality. He has found it as a common
attitude among mangers to believe that error is inevitable, it is normal part of business life, and one needs to cope
with it. He believes management creates most of its problems through its attitudes and practices in terms of what is
rewarded and supports in an organization.

Take right decision

Plan the decision weigh the pros and cons

Foresee the impact of the decision on the organization

Take opinion of the right people

Involve the concerned (employees who will be affected by the decision)

Implement the decision

Persist

Why people don't Do It Right the First Time? Why things are done wrong?

1. The employees does not know what to do clearly, leave alone how to do?

2. If he knows how to do, he is not motivated enough to do it right the first time

3. He may not have the right tools to do a good job.

4. He does not have necessary education or training to know to DIFT.

5. Probably his seniors have trained him to do the wrong way.

6. He is not proud of the job he is doing.

7. He does not get appreciated when he does it right.

Problems of not Doing it Right

1. In some cases, not doing it right the first time may result in not doing it right ever, thereafter

GROUP I 30
 2. Leads to unnecessary expenditure

3. Increases the failure costs

4. Demotivates employees

5. Causes hassles to employees and customers

6. Brings down the reputation of the organization

7. Leads to schedule slippages

8. Increases scraps leading to more cost on account of storage, accounting, disposal etc.

9. Forces the organizations to buy additional components to take care of defects in the process.

10. The productivity gets affected due to holding up of the process to correct the defective product shunting
from place to place for fault diagnosis between employees as to who or which machine caused the defect, wastage of
supervisor's time and the top management's time in resolving deputes.

4. Continuous preventive action

Corrective action is post mortem prevention is better than cure one shot prevention is not good enough.

5. Care for little things and accumulate gains

COMMUNICATING WITH JUNIOR EMPLOYEES - The management should allocate time to

communicate with junior employees.

CARING FOR SMALL THINGS - Every employee should take care, maintain every tool whatever may be
its cost or importance.

KEEP ON ACCUMULATING - Accumulation of small gains needs unending enthusiasm of every

employee in the organization

6. Ensure economic performance

Importance of economic performance quality should increase productivity also talk about success in
economic performance stakeholders will understand economic better.

7. Practice manage by walking around

8 measure success

9 never rest on laurels, continue to improve

10 build a virtual organization

TQM Implementation

Introduction

GROUP I 31
 The top management always leads the implementation of TQM. TQM is based on self-control, which
should be embedded in each employee, team, division, etc. The framework for TQM implementation should
facilitate this and involve every employee.

TQM Tools and Techniques

TQM involves application of the right in the organization for the continuous improvement of quality.

PDSA TQM Implementation

The important actions taken during each phase of PDSA are given below:
Plan
*Establish objectives
*Establish a plan that will facilitate achieving the goal
* Establish a measurement system
Do
*Plan for implementation and measurements
*Implement the plan on pilot basis
Study
*Compare the results with the objectives
*Identify gaps
*Analyze the causes for gaps and exceptional results, if any
Act
*Standardize the procedure that met or exceeded the goal
*If there were gaps, improve the plan and carry out PDSA again

Planning Phase of TQM

1. Announcement - The CEO will be able to convince the workers and the jubior employees about practicing TQM
quite easily as they tend to have an open mind.
2. Select consultant - Consultants having advantage of being independent, will be able to put forth the new ideas to
change the organizational culture.
3. Corporate Strategic Planning - Planning the strategy as to how the organization is going to get into TQM.

Apply PDSA for Improvement

Each improvement action has to be planned and executed following the PDSA cycle:
* Do Phase of TQM - Do phade starts
* Study Phase of TQM - In every meeting of QC, the results achieved through the implementation of TQM should
be studied.

GROUP I 32
* Act Phase of TQM - The plans for implementing TQM should be confirmed.

Select Process for Improvement

* Improving quality
* Reducing defects
* Increasing productivity
* Reducing quality cost
* Improving uptime of equipment

Getting Things Done

1. Recognition - Both employees and suppliers will lead to accelerated implementation of TQM.
2. Praise and Punish - Authoritative, Authoritative and benevolent, Consultive and Participative
3. 80 percent of Success will be due to Personal Contact
4. Accumulative Small Gains
5. Build credibility- Inside and Outside
6. Persist

Barriers to TQM Implementation

* Lack of top management commitment

* Lack of employee involvement
* Lack of clarity in vision
* Wrong consultant
* Not involving customers and suppliers
* Not investing adequate resources
* Tough competition leading to frequent price war

GROUP I 33