Date 18 dec 2007

Hr+mkt+fin
 Definition of “Quality”
➨ Fitness for purpose or use
➨ Conformance to specified requirements
➨ The totality of features and characteristics of
a product or service that bears on its ability
to satisfy the stated and/or implied needs
New Definition of “Quality”
➨ Meeting and anticipating customer’s
requirements, stated or implied
★ At a given time and over a period of time
★ At a price the customer can afford and is willing
to pay
➨ Introducing new and better products into the
market faster than competitor
➨ Continuously bringing down the cost of
manufacturing
 19 dec 2007
• HMF
Thus “Quality” is termed as
simply the price of entering the market
and no more conformance to
specification or competitive edge
and re-defined as
“Value” perceived by the customers
Customer Delight if Value / Price is
much greater than 1
“Quality” is better defined
as….

Error Free OR Defect Free performance

“Do the right things right the first time

and every time”

OPERATIONAL
The changing trend...

Six Sigma Quality

Total Quality Management

Quality Assurance Management - ISO 9000

Company wide Quality Control Management

Quality Control Management

Inspection Management
 Evolution of Quality Management

Inspection Salvage, sorting, grading, blending, corrective

actions, identify sources of non-conformance
Develop quality manual, process performance
Quality data, self-inspection, product testing, basic
Control quality planning, use of basic statistics,
paperwork control.
Quality systems development, advanced quality
Quality
planning, comprehensive quality manuals, use of
Assurance quality costs, involvement of non-production
operations, failure mode and effects analysis.

TQM Policy deployment, involve supplier & customers,

involve all operations, process management,
performance measurement, teamwork, employee
involvement.
 Quality and Productivity
• Productivity = Output/Input (Increase Nr.& Dr. or
Dec.Dr. or Inc. Nr.)
Accomplished by:
– Improved efficiency: lowered op.costs, reducing
waste.
– Improved effectiveness:better decision making,
reducing breakdowns
– Achieving higher performance:reducing
accidents,
– Better organisational health: employee morale,
satisfaction and cooperation
 20 dec 07
• hmf
 Basic Principles of Total Quality
Management (TQM)

• How do you satisfy the customer?

• Why should you satisfy the supplier?

• What is continuous improvement?

 Principles of TQM
 Quality can and must be managed and measured
 Goals are based on requirements, not negotiated
 Satisfaction of owners, customers, employees, suppliers
and society
 Involvement of people
 people are the most valuable asset
 great accomplishments are possible by helping people
achieve their potential
 this should be the main job of management
 Continuous improvement based on objective data
 statistical analysis is an essential tool
 Management must be involved and lead
 Plan and organise for quality improvement
• NOTES: Quality Management Drivers are:
• Focus: Social responsibility. Do not confuse this with Customer assurance only, that
is quality assurance

• Motivation: Management Leadership. Therefore it is internally generated

• Application Areas: Company-wide scope. The entire organisation.

• Key Participants: Involvement at all levels Involves all management and employess.

• Principal Drivers: Company Culture to do the right things right. Continuous product
and process improvement

• Desired end goal: Quality Cost approach. Overall business results and
competitiveness.
• Ref: Laszlo G P Implementing a quality management program: three Cs of success:
Commitment, culture and cost. www.emeraldinsight.com/journals/tqm/sample.htm
 Total Quality Management

“TQM is a management philosophy

embracing all activities through which the
needs and expectations of the customer
and the community and the objectives of
the organisation are satisfied in the most
efficient and effective way by maximising
the potential of the employees in a
continuous drive for improvement”
 Evolution of quality –Means & Focus
1975 1980 1985 1990 1995 2000

Productivity Quality TQC/TQM

Total
Quality Quality
Circle

Quality of
Employee
Work life
Involvement

Self Directed Self

Teams Directed/Managed
Employees
Teams
Empowerment

Operation Customers Innovations

 TQM as Foundation
 Meeting customer requirements
 Reduce development cycle times
 Just in time / demand flow manufacturing
 Reducing product and service costs
 Improving administrative systems training
Quality Management Philosophies

• W Edwards Deming : 14 Principles

• Joseph Juran : Quality Control Handbook

• Philip Crosby: Zero Defects, quality is free