1. BBA Sixth Semester Total Quality Management
-Bijay Lal Pradhan
M Sc Statistics, FDPM(IIMA)
PhD Scholar (TQM)

2. Total Quality Management
Course Title : Total Quality Management
Code No. : MGT 163
Area of Study : Core
Credit : 3

3. Course objectives
This course will enable the students to understand the Total Quality Management concept, principles and practices and help to develop an insight and understanding of Total Quality Management.

4. Syllabus Introduction to Quality and Quality management
Conceptual Frameworks for Total Quality Management (TQM)
TQM Tools
Six Sigma
Quality System Standards

5. TQM Tools
Benchmarking—Definition, concept, benefits, elements, reason for benchmarking, process of benchmarking, FMEA, Quality Function Deployment (QFD)—House of Quality, QFD Process, Benefits, Taguchi Quality Loss function, Total Productive Maintenance (TPM)—Concept, Improvement needs.

6. Benchmarking
In Joseph Juran’s 1964 book Managerial Breakthrough, he asked the question, “What is it that organizations do that gets results so much better than ours?” The answer to this question opens the door to benchmarking, an approach that is accelerating among U.S. firms that have adopted the total quality management (TQM) philosophy.

7. What is Benchmarking
Benchmark is defined as “measuring our performance against that of best in class companies, determining how the best-in-class achieve those performance levels and using the information as a basis for our own company’s targets, strategies and implementation.” Or more simply, “the search of industry best practices that lead to superior performance.”

8. Benchmark is a point of reference against which things are measured
Benchmark is a point of reference against which things are measured. In business, these points of reference or standards can take many forms. They are measured by question about the product or service (e.g. how many, how much time, how much money, how reliable or how well made is it?). By studying other organizations and comparing the answer to these questions, we will be able to measure our performance against that of others.

9. Benefit of Benchmarking
A primary benefit of benchmarking is that it promotes a through understanding of the company’s own processes. i.e the company’s current profile (strength and weaknesses) is well understood.
Benchmarking is process in which adaptation of the practices of superior competitors rather than invention, thereby saving time and money of R&D.

10. Benchmarking enables comparison of performance measures in different dimensions, each with best practices for that particular measure. It involves comparison with several companies who are best for the chosen measure. (some common performance measures are return on assets, cycle time, percentage of on-time delivery, proportion of defects, percentage of damaged goods and time spent on administrative functions).

11. Benchmarking allows organizations to set realistic, rigorous new performance targets and this process helps convince people of the credibility of these targets.
Benchmarking allows organization to define specific gaps in performance and to select the processes to improve. It enables the company to redesign its products and services to achieve outcomes that meet or exceed customer expectations.

12. Benchmarking provide a basis for training human resources
Benchmarking provide a basis for training human resources. Employee begins to see the gap between what they are doing and what best-in-class are doing. Employee initiate to involve the problem solving techniques and process involvement and there exist a synergy among the employee and organizational activities is improved through cross-functional cooperation.

13. Reason for Benchmarking
External drivers:
Customer continually demand better quality, lower price, shorter lead time etc
Competitors are constantly trying to get ahead and steal market.
Legislation changes in our laws, place ever greater demands for improvement

14. Reason for Benchmarking
Internal drivers:
Target which require improvements on our best ever performance.
Technological changes
Self assessment

15. Objectives
Without benchmarking
With benchmarking
Becoming competitive
Internally focused Evolutionary change
Understanding of competitiveness ideas from proven practices
Industry best practices
Few solutions
Frantic catch-up activity
Many options
Superior performance
Defining custom er requirements
Based on history or gut feeling Perception
Market reality
Establishing effective goals
Lacking external focus
Reactive
Credible, unarguable objectives Proactive
Developing true measures of productivity
Pursuing pet projects
Strength and weaknesses not understood
Route of least resistance
Solving real problems
Understanding outputs
Based on industry best practices

16. Process of Benchmarking
Decide what to benchmark
Select companies to benchmark
Obtain data and collect information
Analyse data and form action plan and
Recalibrate and start the process again.

17. FMEA Make FMEA team for all areas.
Identify the product/ process characteristics associated with each operation.
Find all possible failure modes and analyse the effects.
Estimating the seriousness / priority of failure mode and effect to the customers by rating of failure modes in terms of RPN (Risk Priority Number) values.
Finding out the causes of failure modes.
Finding out the probable controls/ recommended actions to reduce happening of failure modes in order to finally improve detection, eliminate or reduce the frequency of unacceptable products and to error-proof control functions.
FMEA

18. Quality Function Deployment
Inter- relationship
Technical requirements
Voice of the customer
Relationships between customer requirements and technical requirements
Priorities of customer requirements
Competitive evaluation
Priorities of technical requirements
QFD

19. QFD Identify customer requirements
Identify supporting technical characteristics
Relate the customer requirements to the supporting technical characteristics
Conducting and evaluation of competing products.
Evaluate technical requirements and develop targets and
Determine which technical requirements to deploy in the production process.
QFD

20. QFD QFD Technical requirements House 1 Customer requirements
Component Characteristics
House 2
Technical requirements
Process Operations
House 3
Component Characteristics
Quality Control Plan
House 4
Process Operations
QFD

21. Benefit of QFD
helps managers to identify both expected quality and exciting quality
improved communication and teamwork between all constituencies in the production process
determines the cause of customer dissatisfaction, making it useful tool for competitive analysis of product quality
It allows companies to stimulate the effects of new design ideas and concepts.
QFD

22. Benefit of QFD
It improves quality and productivity, reduces the lead time for product development, lower product costs and reduces changes after the design stage.
QFD process helps to integrate a firms TQM effort by unifying four major functional strategies: marketing, sales, product design and operation management process.
QFD

23. The Tagauchi philosophy
Three fundamental concepts are:
(a) Quality should be designed and built into the product and not inspected into it.
(b) Quality is best achieved by minimizing the deviation from target.
(c) The cost of the quality should be measured as a function of deviation from the standard and loss should be measured system wise.
QFD

24. Customer Tolerance Unacceptable
Loss Function
Taguchi Loss Function
Loss
Customer Tolerance Unacceptable
Poor
Good
Best
Loss
Quality characteristic
Customer customer customer
Lower control quality upper control
Limit standard Limit

25. TPM
Total = All encompassing by maintenance and production individuals working together
Productive = Production of goods and services that meet or exceed customers expectations
Maintenance = Keeping equipment and plant in as good as or better than the original condition at all times.
TPM

26. Steps for TPM (Improvement needs)
Management learns the new philosophy
Management promotes the new philosophy
Training funded and developed for everyone in the organization
Areas of needed improvement are identified
Performance goals are formulated
An implementation plan is developed
Autonomous work groups are established
TPM