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VTU MBA-TQM 12MBA42 Module 1

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Information about VTU MBA-TQM 12MBA42 Module 1
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Published on January 17, 2014

Author: raghavenugopal

Source: slideshare.net

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VTU MBA-TQM 12MBA42 Module 1
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TOTAL QUALITY MANAGEMENT By… Prof. Raghavendran.V MBA Department

TQM WHAT IS ??? Any Answers 2 TQM by Prof. Raghavendran.V

Quality in simple definition can be defined as a measure of excellence or a state of being free from defects & deficiencies. 3 For example:  Bike needs periodic check up!!  Senior citizen needs regular health check up!!  A newly upgraded computer is known for user friendly!! TQM by Prof. Raghavendran.V

Do we understood about the word Quality?? But, What is TQM??? OOPS!!!!  I’ve no answer for this!!!! 4 TQM by Prof. Raghavendran.V

TQM stand as…. Total: Made up of the whole. Quality: Degree of excellence of a product or service provides Management: Act/ Art, Manner of handling, controlling & directing it 5  You are aware about it now   TQM by Prof. Raghavendran.V

Now we can define that Total Quality Management is an enhancement to the traditional way of doing things. 6 TQM is defined as both philosophy and set of guiding principles that represent the foundation of a continuously improving organization. It is application of quantitative methods & human resources to improve all the processes within an organization and customers. Thus TQM integrates fundamental management techniques, existing improvement efforts. TQM by Prof. Raghavendran.V

Basic Approach or Principles(6) A committed and involved management to provide long term top-to-bottom organizational support. 2) An unwavering focus on the customer, both internally & externally. 3) Effective involvement & utilization of the entire work force. 4) Continuous improvement of the business and production process. 5) Treating suppliers & Vendors as partners. TQM by Prof. Raghavendran.V 6) Establishing the performance measures. 1) 7

Quality old & new cultures Element From 2 Decade’s Definition Product oriented Customer oriented Priorities Second to service & cost First Decisions made Short term Long term Emphasis Detection Prevention Errors Operations System Responsibility Quality control Every one Problem solving Managers only Teams Procurement Price Life cycle cost, partnership Manager’s role 8 Previous to 2 decade’s Plan, assign, control & enforce Delegate, mentoring, coaching & facilitate. TQM by Prof. Raghavendran.V

Quality Dimensions of the Products 1. 2. 3. 4. 5. 6. 7. 8. 9 Performance Features Reliability Conformance Durability Serviceability Aesthetics & Perceived Quality TQM by Prof. Raghavendran.V

Quality Dimensions of the Services           10 Reliability Responsiveness Competence Access Courtesy Communication Credibility Security Knowing the Customer Tangibility TQM by Prof. Raghavendran.V

Importance of Quality in Business & Commerce  There exists relationship between quality, profitability and Market share.  Customer driven quality  Conformance or internal specification quality 11 TQM by Prof. Raghavendran.V

Price advantage Customer Driven Quality Market share Customer Value Customer Attributes & Design Specifications Specification Quality 12 TQM by Prof. Raghavendran.V Eco nom ies of Scal e Profitability & Growth Lower Cost of Quality Specification Quality Lower Cost of quality Investment in Improved Quality

Cost of Quality  "The cost of quality, It’s a term that's widely used – and widely 13 misunderstood.  The "cost of quality" isn't the price of creating a quality product or service. It's the cost of NOT creating a quality product or service.  Every time work is redone, the cost of quality increases. Obvious examples include:  The reworking of a manufactured item.  The retesting of an assembly.  The rebuilding of a tool.  The correction of a bank statement.  The Raghavendran.V TQM by Prof.reworking of a service, such as the reprocessing of a loan operation or the replacement of a food order in a restaurant.

Quality & Competitive Advantage Competitive Advantage & Quality Clarifying the Quality theme into an operations objective Factors Affecting the Quality Understanding the relationships among factors affecting Quality Action to Improve and Assure the conformance to objectives Results 14 TQM by Prof. Raghavendran.V Analysis

Evolution of TQM From holistic historical review quality revolution, we can deduce that Quality can be classified into four evolutionary phases: 1. Inspection 2. Quality Control 3. Quality assurance 4. Total quality Management 15 TQM by Prof. Raghavendran.V

Inspection Phase: During the early days of manufacturing, an operative’s work was inspected and a decision made whether to accept or reject it. As businesses became larger, so to do this role a full time inspection jobs were created. Accompanying the creation of inspection functions, other problems arose:  More technical problems occurred, requiring specialized skills, often not possessed by production workers.  The inspectors lacked training.  Inspectors were ordered to accept defective goods, to increase output.  Skilled workers were promoted into other roles, leaving less skilled workers to perform the operational jobs, such as manufacturing. 16 These changes led to the birth of the separate inspection department with a “chief inspector”, reporting to either the person TQM by Prof. Raghavendran.V in charge of manufacturing or the manager. With the creation of

Quality Control Phase:  Quality Control department evolved, in charge of which was a “quality control manager”, with responsibility for the inspection services and quality control engineering. In the 1920’s statistical theory began to be applied effectively to quality control, and in 1924 Shewhart made the first sketch of a modern control chart. OBJECTIVES:  Establish standards of quality which are acceptable.  Setting & Resetting of processes & Machinery  To keep up the quality of products during Manufacturing 17 process. TQM by Prof. Raghavendran.V

Quality Control 18 Importance  Increases the profits  Enables the industry to complete successfully.  Reduces cost of production  Reduces operation losses by keeping scrap & wastes.  Improves product design TQM by Prof. Raghavendran.V  Reduces bottle necks Functions  Advises on inspection & quality control policy formulated.  Sets inspection standards in the light of engineering tolerances.  Prepares budget request & controls operating expenses.  Select gauges and instrument for inspection.  SQC are used

Quality Assurance Phase  Quality assurance focuses on avoiding defects 19 appearance prior to its occurrence by planned and systematic production processes that provide confidence in a product's suitability for its intended purpose. Quality assurance is considered the third step in the evolution toward TQM. It is different from quality control. Quality assurance is evident before and during the event process  Itby Prof. Raghavendran.V TQM has progressed in the following areas:

Quality Assurance Division Delegate d Inspectio n Quality Manage ment Product Assuranc e Quali ty Assu rance Divisi on Central Material Inspecti on 20 TQM by Prof. Raghavendran.V Measurin g Instrume nts Reliabilit y Engineeri ng Material Analysis

Functions of QA 21 Staff Functions  Product Evaluation  Standardization  Calibration & Maintenance  Inwards goods inspection  Qualification Approval  Environments tests  Physical & Chemical TQM by Prof. Raghavendran.V Test Line Functions  Control & Production      Process Inspection & testing Installation & training Spare parts support Technical literature Analysis of routine problems on line and

Total Quality Management Phase  After entering World War II in December 1941, 22 the United States government ratified legislation to help gear the national economy to military production. At that time, military contracts were awarded to manufacturers who submitted the lowest competitive bid. Products were inspected to meet requirements upon delivery.  During this period, quality was defined in terms of safety. The armed forces inspected virtually every TQM by Prof. Raghavendran.V unit of product to ensure its safety for operation.

Phase INSPECTION QUALITY CONTROL QUALITY ASSURANCE TQM Objective Measurements of specifications Control of process Distribution of Quality responsibility to functional areas. Continuous improvement @ every level, @ place @ stages. Focus Uniform Product Quality Reduction in inspection work Evaluation at all stages Customer Satisfaction ( I& E) Tools Gauges and measurement Techniques SQC tools & Technique Quality Planning documentation & Quality Systems Commitment, Participation, motivation, Education & Training Inspection department Production Department All Departments Top Management leadership Inspection, Sorting and Grading Trouble shooting & Controlling the quality Assuring to build quality by Planning Programme design & control Strategic management, team involvement and action research Criterion Responsibility for Quality Approach 23 TQM by Prof. Raghavendran.V

Obstacles of TQM Lack of management Commitment 2. Inability to change organizational culture 3. Improper planning 4. Lack of continuous training & Education 5. Incompatible organizational structure 6. Ineffective measurement techniques & Lack of access to data & results. 7. Paying inadequate attention to internal & external customers. TQM by Prof. Raghavendran.V 1. 24

Assignment time: Explain in detail about Benefits of TQM?? Of the 6 basic TQM concepts, which were the most effective in world war II? explain Brief out historic review of TQM. 25 TQM by Prof. Raghavendran.V

Module -1 completed By Prof. Raghavendran.V 26 TQM by Prof. Raghavendran.V

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