Important terms in Total Quality Management
Affinity Diagram: It is a technique of gathering and organizing large number of data or ideas, opinion and facts relating to a problem or project, and to identify natural patterns or groupings in the information.
Arrow Diagram: It is a mode of presentation of activity flow, which involves planning and constructing the essential steps from start to finish of a project or problem solution.
Appraisal Cost: Cost for evaluation of correctness and conformance of a product or service or process after the occurrence of the event. This is the cost incurred by a company to identify the quality conformance of products after they occur. This refers to activities relating to the check for conformances within the company and before the products are shipped out.
Audit: It is an examination of records to check their accuracy.
Bar Graph: A graphical means of data presentation by bars or columns.
Benchmarking: The term refers to a special quality improvement technique that seeks to understand and adopt the “best practice” of others who are world-class in their fields.
Best Practice: It is adopted in an for achieving the benchmarked level of performance, after understanding the process of superior performance.
Brainstorming: It is an idea generation technique which encourages a group of people to meet for discussing a common or broad issue for identifying the course of approach, route cause, solution or any other pertaining matters or problems.
Cause-and-Effect Diagram: It is a technique of graphical presentation used to identify and relate causes and sub-causes with a particular effect or result.
Continuous Improvement: It is a term adopted by ISO 9000 standards and 2000 standards version, which refers to discontinuous but repetitive activity for improvements.
Control Charts: It is a graphical representation of the characteristic of a process around the central line and one or more control limits.
Cost of Quality: It is the measure of cost incurred for not doing things ‘first time right’ in order to meet the customers’ total requirements. It is the difference between the actual cost of making and selling the products or services and the cost if there were no failures during manufacturing or use of the same and no possibility of failure either.
Creativity and Innovation: Creativity is the ability of a person to discover a new relationship or ideas that has not existed before, and innovation refers to the new method or approach by which the new idea can be implemented.
Critical Path Method (CPM): It refers to the measurement of critical path in the arrow diagram analysis of a project work, where the critical path is the longest path through the network in terms of time dimension.
Cycle Time: It refers to time performance i.e., time required to fulfill the commitments or to complete the tasks.
Defect: It refers to any non-conformance of the product or service with that of agreed parameters or customer requirements. Defect is an attribute, and expressed as attribute data.
Economic Value Addition (EVA): It is a performance indicator in terms of cost of capital employed versus the earnings of a company. It includes the interest outgo for the capital (i.e., the interest that would have been paid had the entire capital been borrowed from the market at a market rate) and earnings mean net profit after taxes and other payables, which can be distributed to stakeholders.
Flow Chart: It is a graphical representation, which symbolically shows the sequential flow of activities in a process that produces an output. Flow charts can be of different types, like Process flow chart, Work flow diagram, Resource deployment flow chart etc.
Histogram: It is a vertical bar chart that displays the data in an arranged way to illustrate the frequency distribution of the measured data values.
Inspection: It is a method of examining, and measuring when necessary, for identification of any defects or short coming of any features or tolerances in a product.
ISO 9000: It is a set of quality system standards that define and guide basic elements of quality systems that companies should use to ensure their products and services meeting or exceeding, customer expectations. The standards cover the specific requirements in areas of quality of design, production, installation, testing and inspection, and services. Standards under ISO-9000 banner call for documentation of all processes affecting quality and compliance of the documented systems and procedures.
Just-in-Time: It is a management philosophy applied in production methods and manufacturing with a view to incorporating systems of producing ‘what is needed when it is needed’. This approach implies the production of exactly what is needed, at the time when it is needed, and not maintaining any extra or safety stocks in the production processes.
Kaizen: It is a Japanese concept that means continuous improvement. Kaizen philosophy is based on the belief that a great number of small improvements over a time will lead to substantial cumulative improvement in organisation’s performance.
Non-conformance: Attributes or measured units of data on a given product or part that do not meet the specification limits.
p-Chart: It is a control chart used to evaluate performance of a produces outcome based on the fraction or percentage defective in a sample whose size is either constant or varying.
Pareto Chart: A vertical bar chart that displays the relative importance of categories of problems under study or the conditions. The items are arranged in descending order from left to right, and help to separate the vital few important items from the less important trivial ones. The plot and the concept of identifying vital few gave rise to the important statistical distribution rule of 80:20.
P-D-C-A Cycle: This is the cycle of sequential activities of Plan-Do-Check-and Analyse that are used for problem solving or process improvement. Essence is to plan from present data and information about what one needs to do, implementation by doing the planned activities, analysis of results by study, evaluation and monitoring, standardization of actions and processes for consistency of results, and then repeating the cycle for continuous improvement. This is also known as ‘Deming Cycle’ after the name of its enunciator. It is also termed as P-D-S-A i.e., Plan, Do, Study and Act.
PERT (Programme Evaluation and Review Technique): This is a time-event network analysis system in which various events in a project are identified with a planned time frame for each. These events are shown in the network depicting relationship of each event with the other events.
Poka-Yoke: It is a mistake-proofing system that uses automatic devices or methods to avoid the consequences of simple human error. The idea is to avoid repetitive tasks or actions that depend on memory or vigilance efforts by people, and instead allow people to apply their mind and creativity to value adding jobs.
Process: This refers to linked activities combining the people, equipment, materials, methods and environment with the purpose of producing a product or service for customers within or outside the company. In other words, a process converts the inputs to acceptable value-added outputs for customers.
Process Owner: A person assigned responsibility for a process because of his or her capability to lead a team and personal influence to contribute and make decisions or any one whose performance is measured in terms of success of the process. Process owners are specially trained and empowered employee of the company.
Productivity: It refers to the output to input ratio within a time period and with due consideration for quality. The term is widely used in industries in context of getting higher output for creating profit through productive operations. Productivity is often taken as the measure of efficiency of the use of resources.
Quality: The totality of features and characteristics of a product or services that bear on its ability to satisfy the customer needs and expectations.
Quality Assurance: This has been defined by ISO as: the procedure consisting of all planned and systematic activities implemented within the quality system, and demonstrated as needed, to provide adequate confidence that an entity will fulfill requirements for quality. The quality assurance procedures aim for prevention or detection of non-conformance at the earliest stages, and as such, involve control of quality vendor items, methods and tools planning, in-process control by using simple statistical tools (control charts), analysis for improvement, and audits of outgoing products or services.
Quality Control: This refers to methodology to control the quality of outgoing products as per stipulated specification by means of inspection and sampling technique. Quality control procedure is primarily concerned with the inspection and certification of outgoing quality by checking at specific points within the process.
Quality Council: A senior management team responsible for establishing quality improvement items, policies and plans in the organisation, and then facilitating the quality improvement programmes by resource allocations and monitoring.
Quality Circle: It refers to a self-motivated group of workers who choose to work out solution of common quality problems or an improvement project by regularly meeting together and sharing responsibility.
Quality Function Deployment (QFD): It is a methodology used to ensure that customers’ requirements are met throughout the processes of product design, process design and operation of production systems.
Quality Manual: It is the principal document that describes a company’s quality policy, quality system, quality commitment, and documentation structure. This is a relatively short document that affirms the management’s quality commitment, and functions as the ‘quality system guide’ in the organisation for examining adherence and conformance to ISO-9000 standard.
Quality Policy: It is a policy statement of an organisation’s commitment to quality by stating what, why and how it intends to achieve the stated level of quality. It is a statement that goes into the design of quality system for customer satisfaction.
Quality Procedure: It is functional document under ISO-9000 system that set forth the policy, responsibility and obligation for quality related tasks that affect quality performance within the quality system.
QS-9000: This is a ‘Quality System Requirement’ system defining the fundamentals of a quality system that must be adhered to ensure defect prevention and the reduction of variations and waste in the supply chain of internal and external suppliers of production and service parts and materials. It emphasizes on defect prevention and continuous improvement.
R Chart: A control chart that plots the range of sample data values as a function of time, sequence or lot number.
Re-engineering: It is a fundamental rethinking and radical redesign of business processes in order to achieve dramatic improvement in areas of critical performance, such as quality, cost, service and efficiency.
Restructuring: It refers to the reorientation an dredesign of an organisation’s work structure from function based to process based, running across other functions.
Run Chart: It is a graphical plot of a measurable characteristic of a process versus the time.
Six Sigma: It is a quality matrix that counts the number of defects per million opportunities (DPMO) at six ‘Sigma levels’.
Statistical Process Control (SPC): It is a method of measuring the variability of a process by using control charts, and determining the capability of the process to produce a particular part.
Statistical Quality Control (SQC): It is a method of measuring and controlling the process outputs in terms of the specification by adopting statistical techniques, such as sampling and sampling error measurement, run chart, calibrations of equipment and measuring gauges, statistical analysis of results, cause-and-effect studies etc.
Standards: It is an agreed document that includes the stated and implied requirements and expectations of customers, which should be implemented and adhered to in practice for performance.
Standardisation: It refers to the process of setting or adopting standards for meeting the requirements of consumers.
Stakeholeders: They are individuals or parties who have some interest or stake in the well-being or performance of a company. They can be in the form of customers, employees, suppliers, shareholders, society etc.
Steering Committee: It is a management team (mostly drawn from middle or senior management) assigned with the responsibility of guiding a task and deploying measures for achieving a set objective.
Supplier: They are the source of supply of materials, goods or services to a company.
Supply Chain Management: It refers to the process management where suppliers, sub-contractors and the customer company are linked up in the chain of activities that relate to production, value-addition and delivery of goods and services with a view to satisfying the customers’ needs.
Total Quality Management (TQM): It is an integrated system approach of customer-focused management where all employees are drawn into the process of continuous improvement an dcustomer satisfaction by redesigning the processes and integrating the processes and activities into a chain of quality delivery processes, including the supply chain and internal customer chain, in order to achieve superior business performance.
Tree Diagram: It is a management tool used for analysis and planning where issues, activities or ideas are systematically broken down until an actionable solution emerges from the analysis.
Value Analysis: This refers to a step in product design for customers where function of every component of a product is analysed to determine how it might be improved in the most economical way.
Value chain: It refers to a series of activities or processes that are designed and managed in an organisation in order to add value to the product or service at each stage so that the sum total of result help the company to earn better margin.
World class: This term is used in terms of describing the quality standard of a product or service as the best in its class, considering the global availability.
X-bar Chart: This is a variable data control chart that plots the mean of data values as a function of lot number or time or sequence.
x-R chart: A pair of charts used to plot individual data values, x1 and the range between data values R. It is also known as individual or moving average control chart.
Zero-Defects: This refers to a concept of preventing the occurrence of defects to a very low level, approaching to zero level.
Appraisal Cost: Cost for evaluation of correctness and conformance of a product or service or process after the occurrence of the event. This is the cost incurred by a company to identify the quality conformance of products after they occur. This refers to activities relating to the check for conformances within the company and before the products are shipped out.
Audit: It is an examination of records to check their accuracy.
Bar Graph: A graphical means of data presentation by bars or columns.
Benchmarking: The term refers to a special quality improvement technique that seeks to understand and adopt the “best practice” of others who are world-class in their fields.
Best Practice: It is adopted in an for achieving the benchmarked level of performance, after understanding the process of superior performance.
Brainstorming: It is an idea generation technique which encourages a group of people to meet for discussing a common or broad issue for identifying the course of approach, route cause, solution or any other pertaining matters or problems.
Cause-and-Effect Diagram: It is a technique of graphical presentation used to identify and relate causes and sub-causes with a particular effect or result.
Continuous Improvement: It is a term adopted by ISO 9000 standards and 2000 standards version, which refers to discontinuous but repetitive activity for improvements.
Control Charts: It is a graphical representation of the characteristic of a process around the central line and one or more control limits.
Cost of Quality: It is the measure of cost incurred for not doing things ‘first time right’ in order to meet the customers’ total requirements. It is the difference between the actual cost of making and selling the products or services and the cost if there were no failures during manufacturing or use of the same and no possibility of failure either.
Creativity and Innovation: Creativity is the ability of a person to discover a new relationship or ideas that has not existed before, and innovation refers to the new method or approach by which the new idea can be implemented.
Critical Path Method (CPM): It refers to the measurement of critical path in the arrow diagram analysis of a project work, where the critical path is the longest path through the network in terms of time dimension.
Cycle Time: It refers to time performance i.e., time required to fulfill the commitments or to complete the tasks.
Defect: It refers to any non-conformance of the product or service with that of agreed parameters or customer requirements. Defect is an attribute, and expressed as attribute data.
Economic Value Addition (EVA): It is a performance indicator in terms of cost of capital employed versus the earnings of a company. It includes the interest outgo for the capital (i.e., the interest that would have been paid had the entire capital been borrowed from the market at a market rate) and earnings mean net profit after taxes and other payables, which can be distributed to stakeholders.
Flow Chart: It is a graphical representation, which symbolically shows the sequential flow of activities in a process that produces an output. Flow charts can be of different types, like Process flow chart, Work flow diagram, Resource deployment flow chart etc.
Histogram: It is a vertical bar chart that displays the data in an arranged way to illustrate the frequency distribution of the measured data values.
Inspection: It is a method of examining, and measuring when necessary, for identification of any defects or short coming of any features or tolerances in a product.
ISO 9000: It is a set of quality system standards that define and guide basic elements of quality systems that companies should use to ensure their products and services meeting or exceeding, customer expectations. The standards cover the specific requirements in areas of quality of design, production, installation, testing and inspection, and services. Standards under ISO-9000 banner call for documentation of all processes affecting quality and compliance of the documented systems and procedures.
Just-in-Time: It is a management philosophy applied in production methods and manufacturing with a view to incorporating systems of producing ‘what is needed when it is needed’. This approach implies the production of exactly what is needed, at the time when it is needed, and not maintaining any extra or safety stocks in the production processes.
Kaizen: It is a Japanese concept that means continuous improvement. Kaizen philosophy is based on the belief that a great number of small improvements over a time will lead to substantial cumulative improvement in organisation’s performance.
Non-conformance: Attributes or measured units of data on a given product or part that do not meet the specification limits.
p-Chart: It is a control chart used to evaluate performance of a produces outcome based on the fraction or percentage defective in a sample whose size is either constant or varying.
Pareto Chart: A vertical bar chart that displays the relative importance of categories of problems under study or the conditions. The items are arranged in descending order from left to right, and help to separate the vital few important items from the less important trivial ones. The plot and the concept of identifying vital few gave rise to the important statistical distribution rule of 80:20.
P-D-C-A Cycle: This is the cycle of sequential activities of Plan-Do-Check-and Analyse that are used for problem solving or process improvement. Essence is to plan from present data and information about what one needs to do, implementation by doing the planned activities, analysis of results by study, evaluation and monitoring, standardization of actions and processes for consistency of results, and then repeating the cycle for continuous improvement. This is also known as ‘Deming Cycle’ after the name of its enunciator. It is also termed as P-D-S-A i.e., Plan, Do, Study and Act.
PERT (Programme Evaluation and Review Technique): This is a time-event network analysis system in which various events in a project are identified with a planned time frame for each. These events are shown in the network depicting relationship of each event with the other events.
Poka-Yoke: It is a mistake-proofing system that uses automatic devices or methods to avoid the consequences of simple human error. The idea is to avoid repetitive tasks or actions that depend on memory or vigilance efforts by people, and instead allow people to apply their mind and creativity to value adding jobs.
Process: This refers to linked activities combining the people, equipment, materials, methods and environment with the purpose of producing a product or service for customers within or outside the company. In other words, a process converts the inputs to acceptable value-added outputs for customers.
Process Owner: A person assigned responsibility for a process because of his or her capability to lead a team and personal influence to contribute and make decisions or any one whose performance is measured in terms of success of the process. Process owners are specially trained and empowered employee of the company.
Productivity: It refers to the output to input ratio within a time period and with due consideration for quality. The term is widely used in industries in context of getting higher output for creating profit through productive operations. Productivity is often taken as the measure of efficiency of the use of resources.
Quality: The totality of features and characteristics of a product or services that bear on its ability to satisfy the customer needs and expectations.
Quality Assurance: This has been defined by ISO as: the procedure consisting of all planned and systematic activities implemented within the quality system, and demonstrated as needed, to provide adequate confidence that an entity will fulfill requirements for quality. The quality assurance procedures aim for prevention or detection of non-conformance at the earliest stages, and as such, involve control of quality vendor items, methods and tools planning, in-process control by using simple statistical tools (control charts), analysis for improvement, and audits of outgoing products or services.
Quality Control: This refers to methodology to control the quality of outgoing products as per stipulated specification by means of inspection and sampling technique. Quality control procedure is primarily concerned with the inspection and certification of outgoing quality by checking at specific points within the process.
Quality Council: A senior management team responsible for establishing quality improvement items, policies and plans in the organisation, and then facilitating the quality improvement programmes by resource allocations and monitoring.
Quality Circle: It refers to a self-motivated group of workers who choose to work out solution of common quality problems or an improvement project by regularly meeting together and sharing responsibility.
Quality Function Deployment (QFD): It is a methodology used to ensure that customers’ requirements are met throughout the processes of product design, process design and operation of production systems.
Quality Manual: It is the principal document that describes a company’s quality policy, quality system, quality commitment, and documentation structure. This is a relatively short document that affirms the management’s quality commitment, and functions as the ‘quality system guide’ in the organisation for examining adherence and conformance to ISO-9000 standard.
Quality Policy: It is a policy statement of an organisation’s commitment to quality by stating what, why and how it intends to achieve the stated level of quality. It is a statement that goes into the design of quality system for customer satisfaction.
Quality Procedure: It is functional document under ISO-9000 system that set forth the policy, responsibility and obligation for quality related tasks that affect quality performance within the quality system.
QS-9000: This is a ‘Quality System Requirement’ system defining the fundamentals of a quality system that must be adhered to ensure defect prevention and the reduction of variations and waste in the supply chain of internal and external suppliers of production and service parts and materials. It emphasizes on defect prevention and continuous improvement.
R Chart: A control chart that plots the range of sample data values as a function of time, sequence or lot number.
Re-engineering: It is a fundamental rethinking and radical redesign of business processes in order to achieve dramatic improvement in areas of critical performance, such as quality, cost, service and efficiency.
Restructuring: It refers to the reorientation an dredesign of an organisation’s work structure from function based to process based, running across other functions.
Run Chart: It is a graphical plot of a measurable characteristic of a process versus the time.
Six Sigma: It is a quality matrix that counts the number of defects per million opportunities (DPMO) at six ‘Sigma levels’.
Statistical Process Control (SPC): It is a method of measuring the variability of a process by using control charts, and determining the capability of the process to produce a particular part.
Statistical Quality Control (SQC): It is a method of measuring and controlling the process outputs in terms of the specification by adopting statistical techniques, such as sampling and sampling error measurement, run chart, calibrations of equipment and measuring gauges, statistical analysis of results, cause-and-effect studies etc.
Standards: It is an agreed document that includes the stated and implied requirements and expectations of customers, which should be implemented and adhered to in practice for performance.
Standardisation: It refers to the process of setting or adopting standards for meeting the requirements of consumers.
Stakeholeders: They are individuals or parties who have some interest or stake in the well-being or performance of a company. They can be in the form of customers, employees, suppliers, shareholders, society etc.
Steering Committee: It is a management team (mostly drawn from middle or senior management) assigned with the responsibility of guiding a task and deploying measures for achieving a set objective.
Supplier: They are the source of supply of materials, goods or services to a company.
Supply Chain Management: It refers to the process management where suppliers, sub-contractors and the customer company are linked up in the chain of activities that relate to production, value-addition and delivery of goods and services with a view to satisfying the customers’ needs.
Total Quality Management (TQM): It is an integrated system approach of customer-focused management where all employees are drawn into the process of continuous improvement an dcustomer satisfaction by redesigning the processes and integrating the processes and activities into a chain of quality delivery processes, including the supply chain and internal customer chain, in order to achieve superior business performance.
Tree Diagram: It is a management tool used for analysis and planning where issues, activities or ideas are systematically broken down until an actionable solution emerges from the analysis.
Value Analysis: This refers to a step in product design for customers where function of every component of a product is analysed to determine how it might be improved in the most economical way.
Value chain: It refers to a series of activities or processes that are designed and managed in an organisation in order to add value to the product or service at each stage so that the sum total of result help the company to earn better margin.
World class: This term is used in terms of describing the quality standard of a product or service as the best in its class, considering the global availability.
X-bar Chart: This is a variable data control chart that plots the mean of data values as a function of lot number or time or sequence.
x-R chart: A pair of charts used to plot individual data values, x1 and the range between data values R. It is also known as individual or moving average control chart.
Zero-Defects: This refers to a concept of preventing the occurrence of defects to a very low level, approaching to zero level.
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