History of TQM

By
Mahendra Singh
Centre for business Administration
Central University of Jharkhand, Ranchi

History of quality management

To know the future, know the past!
Before

Industrial Revolution, skilled craftsmen served

both as manufacturers and inspectors, building quality
into their products through their considerable pride in
their workmanship.
Industrial Revolution changed this basic concept to
interchangeable parts. Likes of Thomas Jefferson and F.
W. Taylor (scientific management fame) emphasized
on production efficiency and decomposed jobs into
smaller work tasks. Holistic nature of manufacturing
rejected!
2

History of Quality
There

are lessons to be learned from the

experiences of the successful companies. The
common factors are: Focusing on customer needs,
upper management in charge of quality, training
the entire hierarchy to manage for quality, and
employee involvement - Joseph Juran, World War II
and the Quality Movement
Modern Quality Management
Bell Laboratories was the birthplace of modern
quality management
Walter Shewhart: Process Oriented Quality Control
Both Deming and Juran worked for Bell
British Standards 600 established 1935
3

World War II
Large

expansion in quality
control activities
One may even speculate that the second
World War was won by quality control and
by the utilization of modern statistics.
Certain statistical methods researched and
utilized by the allied powers were so
effective that they were classified as
military secrets until the surrender of Nazi
Germany. - Kaoru Ishikawa, What is Total
Quality Control
4

The Postwar period

ASQC

was established at 1946

Changed name to ASQ at 1997

After

war the attitude was that

American manufacturers could sell
whatever they produced, so who
needed quality
Joseph Juran deserves lot of credit:
It is important that top management be
quality-minded. In the absence of sincere
manifestation of interest at the top, little will
happen
5

History of quality management

Statistical

approaches to quality control started at

Western Electric with the separation of inspection
division. Pioneers like Walter Shewhart, George
Edwards, W. Edwards Deming and Joseph M. Juran
were all employees of Western Electric.
After World War II, under General MacArthur's Japan
rebuilding plan, Deming and Juran went to Japan.
Deming and Juran introduced statistical quality control
theory to Japanese industry.
The difference between approaches to quality in USA
and Japan: Deming and Juran were able to convince the
top managers the importance of quality.
6

The 1960s
Baby

boomers with increased

incomes were not interested in
quality
Only positive direction was the
change of focus from the factory
floor to the entire production
process - Armand V. Feigenbaum,
Total Quality Control: Engineering
and Management
No focus on people like Japanese
7

The 1970s
Troubled

time for US
manufacturers due to Japanese
increased success
Excuses: Japan depends of cheap
labor, Japanese workers are
exploited, there is something in their
culture, Americans are lazy

Motorola

and Whirlpool were

good examples of poor quality
8

The 1980s
Discovery

of quality circles and

Phil Crosby
Crosbys book Quality is Free a huge
success

Ishikawa

brought the Japanese

way of quality to US through his
book What is Total Quality Control
Still, American managers still
didnt get the message
9

Total Quality Management

Concept

emerged during the 80s

from a variety of different sources
SEMATECHs definition:
TQM is a holistic business
management methodology that
aligns the activities of all employees
in an organization with the common
focus of customer satisfaction
through continuous improvement of
all activities, goods and services
10

Early TQM successes

Nashua
Xerox
Motorola
Intel
Dayton-Hudson
Corning
Hewlett-Packard

11

The 1990s
First

clear signs of the payoffs of

TQM finally emerged
Small number of US companies
raised the quality in a world class
level
However, there were also problems
Hubble Space Telescope
The Seal of the Navel Academy is
hereunto affixed - US Naval Academy
diplomas
12

World Trade
Growing

importance of the world

trade caused need for world wide
quality standards and
accelerated unification of Europe
and development of third world
countries
ISO 9000 standards were
developed

13

History of quality management

Next

20 odd years, when top managers in USA focused

on marketing, production quantity and financial
performance, Japanese managers improved quality at an
unprecedented rate.
Market started preferring Japanese products and
American companies suffered immensely.
America woke up to the quality revolution in early
1980s. Ford Motor Company consulted Dr. Deming to
help transform its operations.
(By then, 80-year-old Deming was virtually unknown in
USA. Whereas Japanese government had instituted The
Deming Prize for Quality in 1950.)
14

History of quality management

Managers

started to realize that quality of

management is more important than management of
quality. Birth of the term Total Quality Management
(TQM).
TQM Integration of quality principles into
organizations management systems.
Early 1990s: Quality management principles started
finding their way in service industry. FedEx, The RitzCarton Hotel Company were the quality leaders.
TQM recognized worldwide: Countries like Korea,
India, Spain and Brazil are mounting efforts to increase
quality awareness.
15

Evolution of TQM philosophies

The

Deming Philosophy
Definition of quality, A product or a service possesses
quality if it helps somebody and enjoys a good and
sustainable market.
Improve quality

Long-term
competitive
strength

Decrease cost because

of less rework, fewer
mistakes.

Stay in
business

Productivity improves

Capture the market

with better quality
and reduced cost.

16

The Deming philosophy

14 points for management:
1. Create and publish to all employees a statement of the
aims and purposes of the company. The management
must demonstrate their commitment to this statement.
2. Learn the new philosophy.
3. Understand the purpose of inspection to reduce the
cost and improve the processes.
4. End the practice of awarding business on the basis of
price tag alone.
5. Improve constantly and forever the system of
production and service.
17

The Deming philosophy

6.
7.
8.
9.
10.
11.
12.
13.
14.

Institute training
Teach and institute leadership.
Drive out fear. Create an environment of innovation.
Optimize the team efforts towards the aims and
purposes of the company.
Eliminate exhortations for the workforce.
Eliminate numerical quotas for production.
Remove the barriers that rob pride of workmanship.
Encourage learning and self-improvement.
Take action to accomplish the transformation.

18

The Deming philosophy

1.

2.

A System of Profound Knowledge

Appreciation for a system - A system is a set of
functions or activities within an organization that work
together to achieve organizational goals.
Managements job is to optimize the system. (not parts
of system, but the whole!). System requires cooperation.
Psychology The designers and implementers of
decisions are people. Hence understanding their
psychology is important.

19

The Deming philosophy

3.

4.

Understanding process variation A production

process contains many sources of variation. Reduction
in variation improves quality. Two types of variationscommon causes and special causes. Focus on the
special causes. Common causes can be reduced only
by change of technology.
Theory of knowledge Management decisions should
be driven by facts, data and justifiable theories. Dont
follow the managements fads!

20

The Juran philosophy

1.
2.

Pursue quality on two levels:

The mission of the firm as a whole is to achieve high
product quality.
The mission of each individual department is to
achieve high production quality.
Quality should be talked about in a language senior
management understands: money (cost of poor
quality).
At operational level, focus should be on conformance
to specifications through elimination of defects- use of
statistical methods.

21

The Juran philosophy

Quality Trilogy
1.
Quality planning: Process of preparing to meet quality
goals. Involves understanding customer needs and
developing product features.
2.
Quality control: Process of meeting quality goals
during operations. Control parameters. Measuring the
deviation and taking action.
3.
Quality improvement: Process for breaking through to
unprecedented levels of performance. Identify areas of
improvement and get the right people to bring about
the change.

22

The Crosby philosophy

Absolutes of Management
Quality means conformance to requirements not
elegance.
There is no such thing as quality problem.
There is no such thing as economics of quality: it is
always cheaper to do the job right the first time.
The only performance measurement is the cost of quality:
the cost of non-conformance.
Basic Elements of Improvement
Determination (commitment by the top management)
Education (of the employees towards Zero Defects (ZD))
Implementation (of the organizational processes towards
ZD)
23