1. TOTAL QUALITY MANAGEMENT Introduction and Evolution of Quality Movement Session 1

2. Learning Objectives  What is Quality?  Evolution of Quality Movement  Definitions of Quality  Dimensions of Quality  Importance of Quality in Business

3. Meaning of Quality  Quality is a perceptual, conditional and somewhat subjective attribute and may be understood differently by different people.  Commonly, quality can mean ‘degree of excellence’, as in, "a quality product" or "work of average quality".  The qualities of something depends on the criteria being applied to. Subjectively something may be good because it is beautiful or it may be useful or because it exists. It can also be defined as fitness for purpose.  quality of a product or service refers to the perception of the degree to which the product or service meets the customer's expectations.

4. Quality during prehistoric times  Quality in ancient times - 1 “The mason who builds a house which falls down and kills the inmate shall be put to death.” - Code of Hammurabi, ruler of Babylonia, 3000 B.C

5. Quality during prehistoric times  Baker’s Dozen – "This consists of thirteen or fourteen; the surplus number, called the inbread, being thrown in for fear of incurring the penalty for short weight.“ Assize of Bread and Ale. In 1266, Henry III revived a ancient statute that regulated the price of bread according to the price of wheat. Bakers or brewers who gave short measure could be fined, pilloried or flogged. Bakers were regulated by a trade guild called The Worshipful Company of Bakers dating back to reign of Henry the II (1154 – 89)

6. Evolution of Quality Movement - 1  Craftsmen from medieval Europe formed unions called guilds in the late 13th century. guilds  Until the early 9th century, manufacturing tended to follow this craftsmanship model. Craftsmen across medieval Europe organized into unions called guilds - responsible for developing strict rules for product and service quality - Inspection committees enforced rules by marking flawless goods with a special mark or symbol. Craftsmen themselves often placed a second mark on the goods they produced to represent a craftsman’s good reputation. Inspection marks and master-craftsmen marks served as proof of quality

7. Evolution of Quality Movement - 2  The factory system, with its emphasis on product inspection, started in Great Britain in the mid-1750s with changes in predominant production methods:  Craftsmanship – Young boys learned skilled trade serving as apprentices under a master craftsman for many years. Craftsmen took personal pride in their workmanship  The factory system - Craftsman’s work was divided into specialized tasks. Craftsmen became factory workers and owners became production supervisors. Decline in employees autonomy and empowerment.  The Taylor system (US model) – Factory planning by specialized engineers. Craftsmen became inspectors and managers who executed plans. Inspection departments to detect and remove defective items. Defectives scrapped or reworked. Increase in productivity and negative effect on quality.

8. Evolution of Quality Movement - 3  In the early 20th century, manufacturers began to include quality processes in quality practices.early 20th century  Walter Shewhart, a statistician for Bell Laboratories, began to focus on controlling processes in the mid-1920s, making quality relevant for the finished product and also the processes that created it. Walter Shewhart  Industrial processes yield data that could be analyzed using statistical techniques – development of control charts.  W Edwards Deming, a statistician with the U.S. Department of Agriculture and Census Bureau, became a proponent of Shewhart’s SQC methods and later leader of quality movement. W Edwards Deming

9. Evolution of Quality Movement - 4  World War II, quality became a critical component of the war effort: the military began to use World War II Statistical Sampling techniques for inspection - adapted sampling tables and published them in a military standard, known as Mil-Std-105. publication of military-specification standards and incorporation of sampling tables into the military contracts. training courses in Walter Shewhart’s statistical process control techniques.Walter Shewhart’s During cold war years NATO developed AQAP (Allied Quality Assurance Program)

10. Evolution of Quality Movement - 5  Quality revolution in Japan following World War II. The Japanese welcomed the input of Americans Joseph M. Juran and W. Edwards Deming Joseph M. JuranW. Edwards Deming Improving all organizational processes Training people who used processes  Japanese manufacturers focused on improving all organizational processes through the people who used them. As a result, Japan was able to produce higher-quality exports at lower prices, benefiting consumers throughout the world.

11. Evolution of Quality Movement - 6  By the 1970s, U.S. industrial sectors such as automobiles and electronics faced Japan’s high- quality competition.  Consumer movement in USA against production of defective goods (Quality problems) notably by Ralf Nader and other activists.  US industrial sectors suffered setback against cheaper and better quality goods from Japan

12. Zen and the Art of Motorcycle Maintenance: An Inquiry into Values is a 1974 philosophical novel The first of Robert M Pirsigs texts in which he explores his philosophy of quality.. The book was rejected by 121 publishers.. The book sold 5 million copies worldwide.- more than any other bestselling book,

13. Evolution of Quality Movement - 7  The U.S. response, emphasizing statistics and approaches that embraced the entire organization Known as total quality management (TQM).  The Baldrige National Quality Program and Malcolm Baldrige National Quality Award were established by the U.S. Congress the same year.  Other Quality awards such as Deming Prize, European Quality Award etc.

14. Evolution of Quality Movement - 8  Several other quality initiatives followed.  Quality Programs :  Quality Circles, Quality Function Deployment, Six Sigma Quality, Zero Defects, Kaizen, Total Productive Maintenance, Benchmarking, Capability Maturity model, etc  Quality Management System Standards – ISO 9000, QS 9000, ISO 14000, ISO 18000 etc.  Last decade of the 20th century TQM matures – practices spread to developing world – Globalization  New quality systems evolved beyond manufacturing into service, healthcare, education and government sectors.

15. Definitions of Quality  Joseph M. Juran: "Fitness for use.” Joseph M. Juran  Philip B. Crosby: "Conformance to requirements." Philip B. Crosby  Feigenbaum: Total composite of product and services characteristics of marketing, engineering, manufacturing and maintenance through which the product or service in use will meet the expectation by the customer.  ISO 840(Quality vocabulary): The totality of features and characteristics of a product or service that bear on its ability to satisfy stated or implied needs.  Noriaki Kano: Products and services that meet or exceed customers' expectations.“  Peter Drucker: "Quality in a product or service is not what the supplier puts in. It is what the customer gets out and is willing to pay for." Peter Drucker

16. Quality in modern business  Many different techniques and concepts have evolved to improve product or service quality.service quality  common quality-related functions within a business  quality assurance which is the prevention of defects through deployment of quality assurance Quality Management System Failure Mode and Effect Analysis  quality control which is the detection of defects quality control

17. Dimensions of Quality  Performance: - refers to primary operating characteristics of a product. E.g. for a TV – Picture and sound clarity, reception of multiple channels  Features: Secondary characteristics that supplement the basic functioning of the product. – TV automatic tuner  Reliability: refers to the probability of a product failing within a specified period of time. Measures –  MTTF – Mean time to first failure  MTBF – Mean time between failures  Conformance: refers to the degree to which the product design and operating characteristics match pre- established standards.

18. Dimensions of Quality  Durability: refers to the product life. The period of use one gets from a product before it physically detiriorates. light bulb – time till the filament fuses.  Serviceability: refers to the speed, competency and efficiency of repair.  MTTR – Elapsed time to repair  Aesthetics: how a product looks, feels, sounds, tastes or smells – (reflection of individual preference)  Perceived Quality: refers to customer perceptions about quality (subjective as they do not have full information and rely on indirect measures)

19. Quality in Business  Customer driven Quality results in increased market share – leading to Price advantage and economies of scale.  Conformance to internal quality specifications lead to cost reduction – less product returns, rework and scrap Adherence to Quality leads to Profitability and Growth

20. Quality leads to Profitability and Growth Customer Requirements And Design Specifications Price Advantage Specification Quality Customer driven Quality Market Share Lower cost of Quality Profitability and Growth Economies of Scale Investment in improved quality

21. Thank You Vikram D Shikhare