Last Minute Revision Notes - Tqm - Mid Sem

Page 1 of 7 TOTAL QUALITY MANAGEMENT - MM ZG522 Last Minute Revision Notes – Based On Previous Year Questions – In Simple Language

Chapter 1 1. Definition of TQM. Benefits and limitations of TQM.

Definition of TQM: TQM is Total Quality Management. It is the art of managing the whole organization for achieving the highest degree of excellence in a product or service provided. Benefits of TQM: 1. Consistent quality in product and service. 2. Reduced cost of manufacturing. 3. Reduced cost of repairs or defects. 4. Shorter lead time. 5. Higher profits and revenues. 6. Less waste. 7. More market share. 8. Higher customer satisfaction. 9. Increased customer loyalty. 10. Improved employee morale. 11. Improved team work. 12. Higher employee satisfaction. 2. Concepts of Quality perspectives. Various perspectives of TQM.

Quality perspectives are how various people look at the quality. There are 5 perspectives – 1. Judgment based – when product quality is viewed based on product’s or manufacturer’s reputation. Example: Rolex watch, Reebok Shoes 2. Product based – when some measurable feature of a product becomes less than the same feature of another product, the former may be considered of less or higher quality. Example – TV/Computer of different brands. 3. User based – A user with a particular taste may think of a product of higher quality if it meets his taste than the product which does not meet his/her taste. Example – User of Apple Iphone may consider some other brand to be of lower quality. User of BMW car may consider other brand car to be of lower quality. 4. Value based – Quality is considered higher if the same service or product may be offered by other brand/company at lower price. Example – low cost vs higher cost airline. 5. Manufacturing based – Quality is considered to be higher if the product conforms more to its design or manufacturing specifications (tolerance). Example – A product designed for six sigma quality. 3. TQM Approach of continuous improvement vs traditional management approach. There are differences in the two t wo approaches.

Traditional approach / TQM approach 1. Definition – product based/ customer based 2. Priority – 2nd to service and cost/ equal to service and cost Prepared by Deepak Verma on 06-SEP-2013 for BITS Pilani MSMM 2013 First Semester Mid Semester Exam Preparation. © All rights reserved.


3. 4. 5. 6. 7. 8.

Responsibility – Quality control/everyone Focus – detection/prevention Problem solving – Managers/ teams Procurement – price based/ relationship and life cycle cost based Planning and decisions – short term/ long term Manager’s role – plan, assign, control, enforce/Delegate, coach, facilitate, mentor.

4. TQM framework. Contribution of quality gurus.

There are 7 gurus – 1. 2. 3. 4. 5. 6.

Walter Shewhart – SPC methods and control charts Deming – 14 point philosophy for quality improvement. Basis of ISO 9000 etc. Juran – All levels must be involved in quality efforts. Developed Juran’s Trilogy Feigenbaum – Proposed Total Quality Control. Ishikawa – Quality circles and Cause and Effect Diagram (Fish Bone diagram). Crossby – Quality is Free. Pointed out first that it was easier to build quality than to detect or repair defects. 7. Taguchi – Developed DOE (Design of Experiments) methods. 5. Obstacles in TQM implementations

8 obstacles – 1. Lack of management commitment 2. Poor planning 3. Inability to change organization culture 4. Incompatible organization structure 5. Failure to continually improve 6. Lack of continuous training and education 7. No employee empowerment and involvement 8. Insufficient focus on customers

Chapter 2 6. Deming’s 14 points. Choose one point and describe how to implement it. Answer awaited. 7. Characteristics of Quality Leaders.

1. 2. 3. 4. 5. 6. 7.

They pay attention to customers (internal/external) They empower employees They lead by example They trust employees They emphasize prevention rather than maintenance They encourage collaboration rather than competition They train and coach

Prepared by Deepak Verma on 06-SEP-2013 for BITS Pilani MSMM 2013 First Semester Mid Semester Exam Preparation. © All rights reserved.


8. 9. 10. 11. 12.

They focus on learning They impart education and training They demonstrate commitment to quality and improvement They learn from failures They give recognition

8. 7 steps for strategic planning.

1. 2. 3. 4. 5. 6. 7.

Customer Needs – Identify customer and their needs Customer positioning – remove defective products and services Predict the future – by statistical forecasting methods Gap analysis – compare with the present state Close the gap – develop a plan for future Alignment – align the plan with the quality statements Implementation – allocate resources, teams. Most difficult step of strategic planning.

9. Four Quality Statements.

1. 2. 3. 4.

Core Values. Mission Statement. Vision Statement. Quality Policy Statement.

10. Meaning and Need (Roles) of Quality Council.

Quality council is a body established to provide overall direction for quality improvement. The Quality Council is the driver for TQM implementation in the organization. It consists of CEO, Functional heads, union representative and one coordinator. Coordinator reports to CEO and acts as bridge between CEO and the people. Roles – 1. Provide direction for quality. 2. Write quality statements – Core values, Vision Statement, Mission Statement, Quality Policy statement. 3. Develop yearly goals and objectives and improvement plans. 4. Review and revise rewards and recognition policies. 5. Identify high value projects that improve processes and are focused at the customer satisfaction. 6. Monitor and determine cost of poor quality. 11. Core values and concepts of Organization.

1. 2. 3. 4. 5. 6.

Continuous improvement and learning. Design quality and prevention. Corporate and social responsibility. Value employees. Management by fact. Customer driven quality.



7. Partnership development.

Chapter 3 12. 6 Customer perceptions of quality as per ASQ survey.

Remember abbreviation: PerFeaSer WaPrRe 1. 2. 3. 4. 5. 6.

Performance (Fitness for use) Features (Secondary characteristics) Service (An added value given to the customer) Warranty (Promise to maintain quality) Price (customer judges in terms of value) Reputation (customer sees the reputation of the company. New customer costs 5 times more)

Chapter 4 13. Types of teams and which team is implemented when and why.

Teams are group of people working together for common goals or objectives. Remember abbreviation: ProCroNatSel 1. Process Improvement Team a. Limited lifecycle. Temporary team. b. Represent one process c. Focus on one work unit d. 6-10 members e. Implemented when one process has to be improved 2. Cross Functional Team a. Temporary team b. Targets many work units across the organization c. 6-10 members from different function d. May include customers/ suppliers e. Implemented when one process connecting entire organization or several work units has to be improved 3. Natural Work Team a. Non-voluntary b. Includes all members of work unit c. May include manager d. Some employees may not work but prepare other employees e. Implemented for regular team tasks/projects 4. Self-Directed Team a. Extension of natural work team b. One member may act as supervisor Prepared by Deepak Verma on 06-SEP-2013 for BITS Pilani MSMM 2013 First Semester Mid Semester Exam Preparation. © All rights reserved.


c. Happens in empowered organizations d. Plans their own work and manages the work e. Implemented in empowered organizations to take care of responsibilities. 14. Common barriers to teams’ progress and solutions.

1. 2. 3. 4. 5. 6. 7.

Insufficient Training Insufficient Rewards and recognition Resistant supervisor No management support Lack of planning Lack of union support Lack of access to information

15. How to achieve motivated workforce.

1. 2. 3. 4. 5. 6. 7.

Know yourself Know your employees Share the goals Positive attitude Develop interesting work Monitor progress Keep communication open

16. Stages of team development Forming, Storming, Norming, Performing, Adjourning (for temporary team)

Chapter 5 17. 4 continuous improvement strategies.

Repair, Refinement, Renovation and Reinvention. It is part of Juran’s Trilogy. 18. Juran’s 6 stages methodology. Juran’s Trilogy: 3 ways of process improvement 1. Planning (identify customers, seek customer needs – QFD, DOE, Pareto Charts) 2. Controlling (Determine items to control, set goals, measure, compare – SPC, 7 QC tools) 3. Improvement (Repair, Refine, Renovate, Reinvent – Quality council, provide resources) 19. PDSA Cycle a. Plan i. Identify the opportunity ii. Analyse the process Prepared by Deepak Verma on 06-SEP-2013 for BITS Pilani MSMM 2013 First Semester Mid Semester Exam Preparation. © All rights reserved.


iii. Develop optimal solution b. Do i. c. Study i. d. Act i. ii.

Implement Study the results Standardize the solution Plan for future

Chapter 6 20. Criteria for Supplier Selection 1. Supplier’s understanding of the philosophy of our organization 2. Stability of supplier’s management systems 3. High technical standard 4. Ability to supply precisely the raw materials required 5. Ability to meet standards and quality requirements 6. No danger to breach information security and secrets of our organization 7. Supplier’s quality standard (ISO 9001 etc) 8. Supplier’s reputation and credibility

Chapter 7 21. Categories of Quality Costs:

4 costs – 1. Prevention Cost (for preventing the same failures from happening again) 2. Appraisal Cost (incurred in inspection, audits etc while determining if the product meets quality standard) 3. Internal Failure Cost (all costs correct, replace, dispose of the non-conforming product, BEFORE delivery to the cutomer) 4. External Failure Cost (cost in service, failure investigation AFTER delivery to the customer) 22. Categories of Malcolm Baldridge National Quality Award 1. Manufacturing, 2. Service, 3. Heath care, 4. Small Business, 5. Education. Given for performance excellence in US. Promotes understanding and sharing of performance strategies. 23. Net Sales Index: = Internal Failure Cost as a % of Sales $ = (Internal Failure Cost*100)/Sales $



Chapter 8 24. Types of Benchmarking 1. Internal 2. Competitive 3. Functional or Industry (same product or services or common technological processes) 4. Generic or Process (focus on work processes and not business practices, different organizations) 5. Performance (Business performance) 6. Product (engineering comparison of products)


Last Minute Revision Notes - Tqm - Mid Sem

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