1. Total Quality Management
Prepared by: Bhakti Joshi
Date: January 01, 2015

2. Industry Characteristics
Case Study: Su-Kam
Problem Statement
Power outages and fluctuations
Bad quality power backup appliances
Fragmented industry
Industry Characteristics
Comprised of small local players
Presence of large players in electrical and consumer durables but not “Power Backup” industry
Opportunity
Nascent industry with unorganised players
No standardisations and regulations
Su-kam initiated innovation & creativity

3. Case Study: Su-Kam (Contd…)
Product Design
Visually appealing, light-weighed and shockproof inverters
Power backup duration grows from minutes to 2- 3 hours
Switchover time reduced from 50 – 100 milliseconds to 0 – 5 milliseconds
A 250 VA invertor that can run 1 tube light, a fan or 2 CFLs
Portable devices for shop-owners and traders
Invertor costs about Rs 2000 and Rs 4000 with battery
Team Setup
UPS industry
Cable TV industry and other digital product industry
Missile industry

4. Case Study: Su-Kam (Contd…)
Technology
Introduced MOSFET (Metal Oxide Semiconductor Field-Effect Transistor), a device used to amplify or switch electronic signals that reduced the size of inverter
Sine wave technology that introduced noise-free inverters
Plastic body inverters with help of GE plastics
Home UPS (Inverter plus UPS)
PowerDoc monitoring system that helps in remote monitoring all the larger KVA products
Recall Software a remote system through which Su-Kam servicing or maintenance can done without opening the inverter

5. Case Study: Su-Kam (Contd…)
Distribution
Local manufacturers were converted into distributors
Battery dealers were converted into dealers of Su-kam products
Marketing through banners on dhaabas and tea shops across highways. Put names of dhaabas on banners along with Su-kam’s name
Advertisement in classified columns and gradually moved to colour and electronic media

6. TQM: Focus on Root Causes
CUSTOMER FOCUS
Identify and meet customer needs
CONTINUOUS IMPROVEMENT
Philosophy of never-ending improvement
Employee Empowerment
Employees are expected to seek out, identify and correct quality problems
USE OF QUALITY TOOLS
Ongoing training in the use of quality tools

7. Focus on Root Causes PRODUCT DESIGN PROCESS MANAGEMENT
Products need to be designed to meet customer expectations
PROCESS MANAGEMENT
Quality should be built in the process; sources of quality problems should be identified and corrected
MANAGING SUPPLIER QUALITY
Quality concepts must extend to a company’s suppliers

8. Six Sigma
…is a process in which % of products manufactured are statistically expected to be free of defects (3.4 defective parts per million)
DMAIC
Data Intensive; No place for intuition
Ways to help meet business’ bottom-lines
Implemented with support of champion/process owner
DMADV
Define
Measure,
Analyse,
Design,
Verify
Define
Measure,
Analyse,
Improve,
Control
(Should be used when product is in existence but not performing adequately or as per customer specification)
(Should be used when product is not in existence and existing product needs to be optimized/improved)

9. TQM and Six Sigma - Similarities
Quality improvement systems
Attempt to reduce variations or poor service
Improve customer satisfaction

10. TQM and Six Sigma - Differences
Associated with the development, deployment, and maintenance of organizational systems across various business processes
Strategic approach to maintain existing quality standards and making incremental quality improvements. 
Views quality as conformance to internal requirements
Focus on improving individual operations within unrelated business processes
Initiatives are usually a part-time activity that can be managed by non-dedicated managers.
Work without fully knowing what the financial gains might be
A process improvement program as it is based on concepts that focus on continuous quality improvements 
Uses statistical methods (SPC) for monitoring and controlling business processes
Focuses on improving quality by reducing the number of defects
Focus on improving all the operations within a single business process
Require the skills of professionals that are certified as ‘black belts’
Based on a preplanned project charter that outlines the scale of a project, financial targets, anticipated benefits and milestones

11. Taguchi Methods: Example
Company C received an average of 10 complaints per month last year. In November they received 15 complaints (y). Management sets an acceptable level at 2 (tolerance).
It costs the company Rs.500 directly per complaint to correct the problems. They determined the cost in lost sales to be Rs
Total cost per complaint: Rs. 1500

12. Characteristics of the Company
Customer satisfaction
Quality loss as loss to society quantified through “Quality Loss Function”
Variations from optimal measure results in a loss
Product Design
Equipment: No breakdowns
Specific jobs defined
Policies and Procedures – know-how

13. Formulae L(y) = k(y-m)2 L(y) = Loss k = constant = cost to correct
tolerance2
y = reported value
m = mean value (average)

14. Calculation k = Rs1500/22 = Rs375.0 L(y) = 375.0 (15-10)2 = 375.0 (5)2
= (25)
= Rs is loss for the month of November

15. Concept of Quality Loss
Use of statistical analysis for quantification
Used as a quality control tool to quantify quality during experiments and trial-errors especially in R&D
Aims to reduce product variability with a system for developing specifications and designing them into a product or process.

16. Quality Control
A process through which a business seeks to ensure that product quality is maintained or improved and manufacturing errors are reduced or eliminated. Quality control requires the business to create an environment in which both management and employees strive for perfection. This is done by training personnel, creating benchmarks for product quality, and testing products to check for statistically significant variations. Read more: 

17. Criticism
Discuss in Class

18. Website: