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  UNIT I - TOTAL QUALITY MANAGEMENT Total Quality Management (TQM) is an enhancement to the traditional way of doingbusiness.Total-Made up of the wholeQuality-Degree of Excellence a roduct or !er ice pro ides.Management-#rt of handling$ controlling$ directing etc.TQM is the application of %uantitati e methods and human resources to impro e allthe processes within an organi&ation and exceed CUSTOMER NEEDS  now and inthe future. DEFINING QUALITY : Quality can be %uantified as follows Q '   Ewhere$ Q'Quality'erformanceE'Expectation DIMENSIONS OF QUALITY : ---------------------------------------------------------------------------------------------------------------- DimensionMeaning and Exampe ----------------------------------------------------------------------------------------------------------------erformancerimary product characteristics$ such as the brightness of the pictureeatures!econdary characteristics$ added features$ such as remote control*onformanceMeeting specifications or industry standards$ wor+manship,eliability*onsistency of performance o er time$ a erage time of the unit to failDurabilityseful life$ includes repair !er ice,esolution of problems and complaints$ ease of repair ,esponseuman / to / human interface$ such as the courtesy of the dealer  #esthetics!ensory characteristics$ such as exterior finish,eputationast performance and other intangibles$ such as being ran+ed first----------------------------------------------------------------------------------------------------------------  QUALITY !LANNING The following are the important steps for %uality planning.0.Establishing %uality goals.1.2dentifying customers.3.Disco ering customer needs.4.De eloping product features.5.De eloping process features.6.Establishing process controls and transferring to operations. IM!ORTANT !OINTS TO E NOTED #$ILE QUALITY !LANNING : 0.7usiness$ ha ing larger mar+et share and better %uality$ earn returns muchhigher than their competitors.1.Quality and Mar+et share each has a strong separate relationship to profitably.3.lanning for product %uality must be based on meeting customer needs$ not 8ustmeeting product specifications.4.or same products. 9e need to plan for perfection. or other products$ we needto plan for alue. QUALITY COSTS%&!RE'ENTION COST  Mar+eting  *ustomer  ser.  roduct  !er ice  Design De elopment.  urchasing  :perations (Manufacturing or !er ice)  Quality #dministration. (&A!!RAISAL COST  urchasing #ppraisal *osts.  :perations #ppraisal *osts  External #ppraisal *osts  ,e iew of Test and 2nspection Data  Miscellaneous Quality E aluations )&INTERNAL FAILURE COST  roduct or !er ice Design ailure *osts (2nternal)  urchasing ailure *osts  :perations (roduct or !er ice) ailure *osts *&E+TERNAL FAILURE COST  *omplaint 2n estigations of *ustomer or ser !er ice   ,eturned ;oods  ,etrofit and ,ecall *osts  9arranty *laims  <iability *osts  enalties  *ustomer or ser ;oodwill  <ost !ales ANALYSIS TEC$NIQUES OF QUALITY COST  The purpose of %uality cost analysis is to determine the cost of maintaining acertain le el of %uality.  !uch acti ity is necessary to pro ide feedbac+ to management on theperformance of %uality assurance and to assist management in identifyingopportunities. INDE+ NUM ERS : 2ndex =umbers are often used in a ariety of applications to measure prices$ costs(or) other numerical %uantities and to aid managers in understanding how conditionsin one period compare with those in other periods.   # simple type of index is called a  RELATI'E INDE+ .  QUARTERCOST IN RS& 01>>>111>>310>>40?>>*ost 2ndex in %uarter t ' (*ost in %uarter t  7ase period cost) x 0>> QUARTERCOST RELATI'E INDE+ 0(1>>>1>>>) x 0>> ' 0>>1(11>>1>>>) x 0>> ' 00>3(10>>1>>>) x 0>> ' 0>54(0?>>1>>>) x 0>> ' ?5  TREND ANALYSIS :  ;ood isual aids are important communication tools.  ;raphs are particularly useful in presenting comparati e results to management.Trend #nalysis is one where Time-to-Time comparisons can be made whichillustrates the changes in cost o er time.  68.5   87.5103.3606060.75731.45042.533.3107.510.78.6 TREND ANALYSIS - WATCHES 51015202530354045505560657075808590951001234 !ARETO ANALYSIS :  @oseph @uran obser ed that most of the %uality problems are generally createdby only a few causes.  or example$ A>B of all internal failures are due to one (or) two manufacturingproblems.  2dentifying these C ital few and ignoring the Ctri ial many will ma+e the correcti eaction gi e a high return for a low money input.
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