Productivity

and
Quality Management

Question Bank

What is TQM? State the objectives and

benefits of TQM
What are Quality management systems?
State eight building blocks of TQM

State 10 steps of TQM

What is TPM and explain TPM awards

14 points of Demings philosophy
14 points of Crosbys philosophy
Explain eight Principles of TQM
What is Jurans Triology

Question Bank
What

are Quality circles and how do

they differ from Kaizen?
What are 5 S practices?
What is BPR? Why is it necessary to
initiate this before we start ISO 9000?
What is COQ? How do we bring down
the COQ?
What is six sigma?

Question Bank
Explain

Malcolm Baldrige award

what are the Techniques used in
TQM
State the factors affecting product
and service Quality seperately

Improve Profit
Increase

Sales Volume (Increase

Market share)
Increase Sale Price
Reduce Purchase cost of Input
Reduce cost of production
Improve quality (Reduce cost of
Quality)
Improve productivity

Productivity and Quality

Mgmt
Differentiate
Production and Productivity
Inspection and Quality Control
System, Procedures and Processes
Quality Control and Total Quality
Mgmt (TQM)
TQM and Six Sigma

Productivity- Definition
(Productivity is a ratio)
The amount of output per unit of input
(labor, equipment, and capital).

Number of products / No. of hours taken to produce them

Revenue generated by employee / Salary of employee

System, Procedure and

Process
System

is a set of interactive elements

corresponding to the given inputs to
produce the desired output

Procedure

is a set of activities which have

to follow in a systematic format without
taking any shortcuts

Process

is a set of activities/operations
which follow the procedures and systems
with right RM and intermittent checking to
avoid any lapses.

Process
Process

is a summation of activities
such as operations, inspection,
delays, storage, transportation and
everything else that happens
between the beginning and the end
of the process

Six Sigma
Six

Sigma- (The statistical Representation) is a

process of Quality measurement, which helps
the organization in the improvement of their
Quality
Six Sigma is a systematical process which helps
the organization to eleminate the defects which
prevent it from reaching perfection
Six Sigma ensures the QC, TQM and Zero Defect
When a process attains six sigma level it means
that there is no room for the product to fail
Six sigma is professionalizing of the Quality
Management functions

Sigma
Level

% Good

PPM/DP
MO

Cost of Quality as %
of Sales

95.45

45500

Over 40%

99.73

2700

25 - 40%

99.9937

63

15 - 25%

99.99994
3

0.57

5 - 15%

99.99999
98

0.002

Less than 1%

What is TQM ?
Total

quality management (TQM)

is a business management strategy
aimed at embedding awareness of
quality in all organizational
processes. TQM has been widely
used in manufacturing, education,
hospitals, call centers, government,
and service industries, as well as
NASA space and science programs

What is TQM ?
Total

Quality Management (TQM) is a

structured system for meeting and
exceeding customer needs and
expectations by creating
organization-wide participation in the
planning and implementation of
improvement (continuous and
breakthrough) processes

Total Quality Management

Total: Involve all functions to have customer focus

and give reliable delivery of product+service in
line with customers expectations at lowest cost

Quality: Design and manufacture the

product+service to achieve zero defect and 100%
customer satisfaction

Management: Lead to achieve quality for

customers by communicating the vision, mission
and values to all employees and creating
continuous improvement culture

Techniques for TQM

Total Employee Involvement :

Kaizen, SGA, Quality Circles, KBP/BPR,
customer satisfaction surveys, Training

Just in Time/ Waste Elemination :

TPM, Zero Defect, supplier Partnership

Total Quality Control: TQC is applicable to all

functions, use of 7 QC Tools, use of SPC/SQC and
PDCA, ISO 9000, Six Sigma, ISO 14000,
understand the processes critical to quality (CTQ)

Why TQM ?
In a global marketplace a major characteristic that will
distinguish those organizations that are successful
will be the quality of leadership, management,
employees, work processes, product and service.
This means that products must not only meet
customers community needs for value, they must be
provided in a continuously improving, timely, costeffective, innovative, and productive manner

Principles of TQM
1. Customer-Focused Organisation
2. Leadership
3. Involvement of People
4. Process Approach
5. System Approach to Management
6. Continual Improvement
7. Factual Approach to Decision Making
8. Mutually Beneficial Supplier
Relationships

1.Customer Focussed
Organization
Understand

customer needs and expectations

for products, delivery, price, dependability, etc.
Ensure a balanced approach among customers
and other stake holders (owners, people,
suppliers, local communities and society at
large) needs and expectations.
Communicate these needs and expectations
throughout the organisation.
Measure customer satisfaction & act on results,
Manage customer relationships

2. Leadership

Be proactive and lead by example.

Understand and respond to changes in the external
environment.
Consider the needs of all stake holders including customers,
owners, people, suppliers, local communities and society at
large.
Establish a clear vision of the organisation's future.
Establish shared values and ethical role models at all levels of
the organisation.
Build trust and eliminate fear.
Provide people with the required resources and freedom to act
with responsibility and accountability.
Inspire, encourage and recognise people's contributions.
Promote open and honest communication.
Educate, train and coach people.
Set challenging goals and targets, and
Implement a strategy to achieve these goals and targets.

3. Involvement of People

Accept ownership and responsibility to solve

problems.
Actively seek opportunities to make improvements,
and enhance competencies, knowledge and
experience.
Freely share knowledge & experience in teams.
Focus on the creation of value for customers.
Be innovative in furthering the organisations
objectives.
Improve the way of representing the organisation to
customers, local communities and society at large.
Help people derive satisfaction from their work, and
Make people enthusiastic and proud to be part of
the organisation.

4. Process Approach

Define the process to achieve the desired result.

Identify and measure the inputs and outputs of the process.
Identify the interfaces of the process with the functions of the
organisation.
Evaluate possible risks, consequences and impacts of processes
on customers, suppliers and other stake holders of the process.
Establish clear responsibility, authority, and accountability for
managing the process.
Identify internal and external customers, suppliers and other
stake holders of the process
When designing processes, consider process steps, activities,
flows, control measures, training needs, equipment, methods,
information, materials and other resources to achieve the

desired result.

5. System Approach to
Management

Define the system by identifying or

developing the processes that affect a given
objective.
Structure the system to achieve the
objective in the most efficient way.
Understand the interdependencies among
the processes of the system.
Continually improve the system through
measurement and evaluation, and
Estimate the resource requirements and
establish resource constraints prior to action.

6. Continual Improvements

Make continual improvement of products, processes and

systems an objective for every individual in the organisation.
Apply the basic improvement concepts of incremental
improvement and breakthrough improvement.
Use periodic assessments against established criteria of
excellence to identify areas for potential improvement.
Continually improve the efficiency and effectiveness of all
processes.
Promote prevention based activities.
Provide every member of the organisation with appropriate
education and training, on the methods and tools of continual
improvement such as the Plan-Do-Check-Act cycle , problem
solving , process re-engineering, and process innovation.
Establish measures and goals to guide and track
improvements,and
Recognise improvements.

7. Factual Approach to Decision

Making

Take measurements and collect data and

information relevant to the objective.
Ensure that the data and information are
sufficiently accurate, reliable and
accessible.
Analyse the data and information using
valid methods.
Understand the value of appropriate
statistical techniques, and
Make decisions and take action based on
the results of logical analysis balanced
with experience and intuition.

8. Supplier Relationship

Identify and select key suppliers.

Establish supplier relationships that balance
short-term gains with long-term considerations
for the organisation and society at large.
Create clear and open communications.
Initiate joint development and improvement of
products and processes.
Jointly establish a clear understanding of
customers' needs.
Share information and future plans, and
Recognise supplier improvements and
achievements.

Ten Steps to TQM

Set company strategy, values and culture
Identify the customers and understand their
expectations
3. Define their specific needs
4. Build the quality in the process from the
begining(advocate prevention & not correction)
5. Reduce chronic waste
6. Reduce variation
7. All levels of the organization must be involved/trained
8. Continually improve the quality of product or service
9. Use structured methodology for process improvement
10. Use a balanced approach
1.
2.

Objectives of TQM
100%
Zero

Customer Satisfaction

Defects

Continuous

Improvement Culture

Eight Building Blocks of TQM

1.
2.
3.
4.
5.
6.
7.
8.

Ethics
Integrity
Trust
Training
Teamwork
Leadership
Recognition
Communication

Benefits of TQM
Ability

to be more competitive
Improved market share
Cost reduction
Increased flexibility and responsiveness
Simplified processes
Improved communications
More satisfaction among the workforce

5 S Practices
1.
2.
3.
4.
5.

Seiri : separate out needed items

Seiton: organize workplace for faster
retrieval (fix place for each item)
Seison: sweeping/cleaning around
work area
Seiketsu: keep everything clean for
constant state of readiness
Shitsuke: Everyone must understand
and practice the rules in the plant

Maintenance
Maintenance

is done on the equipments

to keep them running as efficiently as
possible for as long as possible
There are three types of maintenance :
1. Breakdown maintenance (unplanned)
2. Preventive maintenance (planned)
3. Predictive maintenance ( High tech
analysis )

Total Productive Maintenance

TPM

, developed in Japan, is a scientific

company wide approach in which every
employee is concerned about the
maintenance , quality and efficiency of the
equipment
The objective is to reduce the whole life cost
of equipment through more efficient
maintenance management and to integrate
the maintenance and manufacturing functions
Teamwork is a key element of TPM
Analysis of each equipment focuses on
reduction of manufacturing losses and costs

Total Productive Maintenance

TPM

aims to achieve improvements in

cost, quality and speed (productivity)
This is equivalent to TQM (reduces
variations due to automation)
TPM addresses six big losses
reduced yield
process defects
reduced speed idling and minor
stoppages
setup and adjustment equipment failure

TPM Awards
Effective

1971, the factories which

displayed remarkable achievement in
plant maintenance were given this
award
Effective 1989, the factories which
have achieved company-wide
efficiency & productivity by adopting
company-wide TPM are given this
award

Five Pillars of TPM

1. Quality Integration
(Process capability- Cpk)
2. New Equipment Management (design)
3. Autonomous Maintenance (military like)
4. Planned Maintenance (reduce unplanned)
5. Equipment Improvement (productivity)

Seven Deadly Disasters

Dr Deming- TQM
1.
2.
3.
4.
5.
6.
7.

Lack of consistency of purpose

Emphasis on short term profits
MBO and performance Appraisal
system
Job hopping by managers
Using only visible data for decision
making
Excessive medical costs
Excessive cost of liability

Deming Application Prize

For

organizations or divisions of
organizations that manage their
business autonomously
Given to organizations or divisions of
organizations that have achieved
distinctive performance improvement
through the application of TQM in a
designated year

Deming Wheel
Sales

<<<<<<<< <

Production
I
I
Research
Design
I
I
Design
Research
I
I
Production>>>>>>>>>>>SALES

Dr Deming ( 1900-1993)
14 points
1.
2.
3.
4.
5.
6.
7.

Create and publish statement of the aims

and purpose for improvements
Adopt new philosophies
Do not depend on inspection for quality
End the practice of contract to lowest bidder
Continuously improve the system of
production and service
Institute training on the job
Teach and institute leadership

Dr Demings 14 points
8. Drive out fear, create trust and climate for
innovation
9. Direct all efforts to aims and purposes of co.
10. Estimate targets for workforce
11. Eliminate quotas and institute methods of
improvements
12. Eliminate annual rating and merit system
13. Encourage education and self improvement
14. Action to accomplish the transformation

Crosbys 14 steps (Born

1926)
1.
2.
3.
4.
5.
6.
7.

Commitment of top Management

Quality improvement teams
Establish Quality measurement
Estimate Cost of quality
Spread Quality Awareness
Identify opportunities for improvement
Committee for Zero defect monitoring

Crosbys 14 steps (contd)

8.
9.
10.
11.
12.
13.
14.

Employee education
Zero defect day
Goal setting
Error cause removal
Recognition
Quality councils
Do it all again

Crosbys 4 Absolutes of QM
Crosbys

philosophy:
Do it right the first time
The Four absolutes are:
Quality conformance to requirements
System for causing quality- prevention
Performance standard- zero defect
Measurement of quality- price of nonconformance (COQ)

Jurans Philosophy(19042008)

Quality = fitness for use by the

customer

Jurans Triology: (Quality oriented

Principles)
Quality Planning
Quality Control
Quality improvement

1.
2.
3.

Steps of Quality Control

Setting

Quality standards

Apraising

standards

Acting

conformance to these

when standards are exceeded

Planning

for improvements in standards

Quality Assurance
Definition

:
For the customer to buy the
product/service with confidence and
use it for a long time with ease and
satisfaction, the manufacturer has to
give assurance and also give
evidence that the product will not fail

Steps of Quality Assurance

Develop

quality plans
Carryout vendor quality surveys
Carryout product quality audits
Review disposition of non-conforming
products
Initiate customers future needs
Co-ordinate document control activity
Upgrade inspection records

Concepts of Quality
Variation

is the main reason of poor Quality

There is no such thing as Quality Problem, it
is an opportunity to improve
There is nothing like economics of Quality,it
is cheaper to do the job right , the first time
The only performance measurement is the
cost of Quality
The only Performance standard is
ZERO DEFECT

Cost Of Quality
Prevention

Cost.investment cost
Appraisal CostInspection &
Analysis
Internal
CostScrap and rework
External
CostCustomer
Complaints
Product Recalls and
Returns

Cost of Quality

Contribution of Quality Costs

Prevention

costs..High throughout
Appraisal costslow/same throughout
Internal costs..initially high, gradually
declining
External costsinitially high, sharply
decline (stability period)
Total Cost.sharply decline as the
product becomes stable

Economic Balance of
Quality and Costs
As

we keep improving the Quality, the

total Cost of Quality keeps coming down
However if we improve the Quality
beyond a certain point, the prevention
cost will sharply go up and the total cost
will also go up
Hence we have to find an economic
Balance of Cost and Quality (six sigma)

Audit of COQ
Set

an annual target of COQ

Monitor the actual expenses of COQ
All departments to control COQ
Evaluate COQ every month/Quarter
Compute COQ as a percentage of Sales
At the start of TQM activity COQ and COQ as %
of Sales is high, but gradually this comes down
if TQM is implemented in the scientific manner
Revise the annual target of COQ downwards
year after year

The Customer Delight

Customer awareness = keeping customers
requirements in mind
These requirements are: Right Quality,
Right Quantity, Right time & Right Cost
The customer delight is far beyond customer
satisfaction
e.g: Taxi keeping newspapers, Telephone
directory, Railway Timetable, etc

Repeat Orders
Why customers Quit ?
1%

die natural death

3% relocate
5% move away due to friends contact
9% due to competitive reasons
14% poor quality of product
68% indifferent attitude towards
customers

Definition Of TQM
Old

Definition of Quality:
Products and services are provided
exactly as per the specifications already
laid down

New

definition of TQM:
Products and services that totally satisfy
the customer needs and expectations in
every respect, on a continuous basis

 Total

Techniques of TQM

Employee Involvement :
Kaizen, SGA, Quality Circles, KBP/BPR

Just

in Time/ Waste Elemination:

No waiting, material comes in the factory and
directly goes for assembly instead of storing in
stores

Total

Quality Control: TQC is applicable to all

functions, use of 7 QC Tools, use of SPC/SQC
and PDCA

Implementation Process of
TQM

Training :
Team Leaders, Facilitators and other
employees
Decision Style :
Democratic firm decision
Vision :
Long Term Dream
Mission :
Short term objectives to achieve vision
Quality Policy :
Culture to be followed
TQM Team Structure :
Team Leader, Facilitator
Steering Committee :
For Pain Areas
Shared Leadership :
Develop the company objectives
collectively
Communication :
Throughout the organisation
Annual Reward Policy :
Annual apraisals and recognition
to
performers

Elements of TQM

Commitment by senior management and all employees

Meeting customer requirements
Reducing development cycle times
Just In Time/Demand Flow Manufacturing
Improvement teams
Reducing product and service costs
Systems to facilitate improvement
Line Management ownership
Employee involvement and empowerment
Recognition and celebration
Challenging quantified goals and benchmarking
Focus on processes / improvement plans
Specific incorporation in strategic planning

Vision Statement

1.
2.
3.
4.

Bill Gates:There will be a personal computer on

every desk running microsoft software
Vision Statement should answer:
Why did I start this business
When I move on from this business, what do
I leave behind
What am I providing for my customers
beyond product/service
If my business could be everything I dreamed
how would it be

Mission Statement

1.
2.
3.

Mission statement describes the WHAT

of your business, it states why your
organization is in business and what
you are hoping to achieve
Components of Mission Statement:
The overall purpose of your business
What is your business: product/service
What is important for your businessthe values your business lives by

Expectations from the Mission

Statement
Mission

draws on your belief statements

Mission must be future oriented and
portray your organization as it will be
Mission must focus on one common
purpose
Mission must be specific to the
organization, not generic
Mission statement must be short, two
sentences max

Quality Systems
( Quality Mgmt systems)
The

quality of the product is checked

to see the variation
The control in variation wrt the design
spec/dimension is aimed at
More the variation, poorer the quality
Less the variation better the quality
The analysis of variations ( control
charts) give direction for the action to
be taken to control the variation

Quality Management System

Quality

Plan (Quality Assurance Plan)

A Quality plan is a document specifying the
quality management system elements and
the resources to be applied in a specific case
Activities to be considered are:
Product spec,quality and delivery
requirements, how the product/service is
created and resources required,quality
verification and records to be kept to
demonstrate conformity

Road Map of Quality Plan

Identify

who the customers are

Determine the needs of those customers
Translate those needs into our language
Develop a product that can respond to
those needs
Optimise the product features so as to
meet our needs and customers needs
Optimise the process
Prove that the process can produce the
product under operating conditions
Transfer the process to operation

ISO 9000 Standards

ISO

9000 is a series of International stds

To be used by the cos. wanting to
implement in house quality systems
These stds are developed by international
organization for standardization (ISO)
These promote international trade by
providing one consistent set of
requirements recognized around the world

ISO 9000 Certificate

Any

organization in any business field can make

application to the certifying agencies e.g. BVQI
for obtaining ISO 9000 certificate
They guide the organization to make the quality
manual of inhouse procedures and systems
Management representatives are appointed to
look after ISO requirements
Any deviation is termed as NC and recorded in
NCR (non conformity report) which needs to be
resolved
Then the certifying agency awards ISO 9000
certificate

Quality Manual

This is an important document and covers the

following areas of business:

1. Management
responsibility
2. Quality system
3. Contract review
4. Purchasing
5. Product
identification and
traceability
6. Process control
7. Inspection and test
equipments

8. Control of non
conforming products
9. Storage, packing
and
delivery
10. Quality records
11. Internal quality
audits
12. Training
13. Statistical
techniques

ISO 9000 Series

ISO

9001 covers product design, Mfg,

marketing, installation and services

ISO
ISO

9002 covers Mfg and Mktg

9003 covers installation and

testing

ISO 14000
ISO

14001-1996 is a part of Quality

Management system pertaining to environment
management.
All organizations have to control the impact of
their activities, products and services on the
environment
Most countries have stringent norms for control
on pollution
The company has to audit to assess their
performance and ensure that it is within limits
This system needs to be integrated with overall
quality management system of the organization

QS 9000
(Now known as TS 16949)
QS

9000 issued in 1994 is the name given to

the Quality System Requirements of the
automotive industry which were developed by
Chrysler, Ford & General Motors and the
companies having QS-9000 are considered to
have higher standards and better quality
products.
QS-9000 helps companies to stay ahead of
their competition. It does this by filling gaps in
the quality systems that can cause problems
QS 9000 tells current and potential customers
that the product has consistent quality and is
manufactured under controlled conditions.

Business Process Re-engineering

(BPR)
BPR is a management approach
aiming at improvements by
identifying and implementing new
ways of carrying out work. Thus
elevating efficiency and effectiveness
of the processes that exist within and
across the organization

Steps of BPR
Develop

the business Vision and process

objectives such as cost reduction, time
reduction, output quality imrovement etc.
Identify the business processes to be
redesigned (challenge old processes)
Evaluate old processes to avoid repetition
of old mistakes
Identify IT levers: awareness of IT
capabilities can influence BPR process
Design and build new process

Malcolm Baldrige Award

1.
2.
3.

This annual award was introduced in

US in 1987 to recognize US companies
for Business Excellence and Quality
achievement. The objectives were :
To promote awareness of Quality
To understand requirements for
Performance Excellence
Sharing of successful practices with
other companies

Malcolm Baldrige Award

Important Roles:
1. Improve performance practices and
capabilities
2. Sharing of best practices
3. Serve as a working tool for managing
performance, planning, training and
assessment
4. Improvement of overall co.
performance

Malcolm Baldrige Award

Award examines the quality of the
organization
in 7 categories: (100 marks each)
1. Leadership
2. Information and Analysis
3. Strategic Planning
4. Human Resource Development & mgmt
5. Process Management (Improvements)
6. Business Results (Improvements)
7. Customer Focus and Satisfaction

Malcolm Baldrige Award

1.

2.
3.

Steps for Examination

Write the application with the overview of
co , the vision and mission, strategic plans
and trends of improvements in last 5
years in all areas of criteria (categories)
The application shall be assessed and
marks will be given to individual company
The site visits shall be made by the
examiners to verify the trends and
practices

Product and Service Quality

Factors affecting Product Quality
1.
2.
3.
4.
5.
6.
7.
8.
9.

Men
Materials
Machines
Manufacturing conditions
Manufacturing process
Capability to invest money
Management commitment to Quality
Product design (Tangible and *Intangible)
After sales service (*Safety and Reliability)

Product and Service Quality

Ten Dimensions of Service
Quality
1.
2.
3.
4.
5.

Quality
Tangibility
Reliability
Responsiveness
Communication

6. Security
7. Competence
8. Courtesy
9. Understanding
10. Access

Some examples of Service

Quality

Answer

the phone
Dont overpromise
Listen to your Customers
Deal with Complaints
Be helpful and knowledgeable
Train the staff to be courteous
Take the extra step
Throw in something extra

Service Quality
Service

quality has high level of

intangibility
Most services are intangible as there
are performances and not objects
Services are perishable , they can not
be inventoried, saved and resold later
The actual performance of service
differs from provider to provider

Quality Circles
QC

is a small group of employees working on

similar jobs, mostly at worker level to perform
quality control and improvement activities
within their workplace
These groups work on continuous
improvements as a part of company wide
activity
This was started in Japan in 1962 in line with
the conviction of Ishikawa that the workers
can significantly contribute to improve quality
and productivity
Japan attributes phenomenal growth in 19601970 to QC

Quality Circles
Basic Objectives:
1. Wider contribution towards
improvement and development of
the enterprise
2. Respecting humanity and building a
happy and cheerful workplace
3. Exploiting human capabilities fully
and drawing out infinite possibilities

Quality Circles
Components of QC
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.

Decide on the theme

Establish the goals
Clarify reasons and their importance
Access the current situation
Probe the causes and analyze them
Establish corrective measures
Implement the measures
Evaluate results
Standardize to prevent slipups
Reflection of the results

Structure of Quality Circle

Top

management
(monitor progress)
Steering committee (Evaluate progress)
Facilitator
(eliminate hurdles)
Leader and Dy Leader (guide members)
Members
(study cause and effect)
Non members
(give additional inputs)

Sequence of TQM
Operational

Management

5 S
BPR
Quality Management
QC ( Quality Circles)
ISO
TPM ( Total Productive Maintenance)
Six Sigma ( For Processes CTQ )

Books For Reference

Quality

Mgmt Systems
Devendra Kumar Bhatt / Aparna Raj
Productivity and Quality Mgmt
Shashikant D Aphale
Vipul Prakashan