Handbook of

Total Quality Management

 Handbook of
Total Quality Management

Christian N. Madu, Ph.D

Research Scholar, Professor and Chair
Management Science Program
Editor-in-Chief, International Journal of Quality Science
Department of Management and Management Science
Lubin School of Business
Pace University
New York, USA

.,
~

SPRINGER SCIENCE+BUSINESS MEDIA, B.V.

A c.1.P. Catalogue record for this book is available from the Library of Congress

ISBN 978-1-4613-7409-1 ISBN 978-1-4615-5281-9 (eBook)

DOI 10.1007/978-1-4615-5281-9

All Rights Reserved

© 1998 Springer Science+Business Media Dordrecht
Originally published by Kluwer Academic Publishers in 1998
Softcover reprint ofthe hardcover lst edition 1998
No part of the material protected by this copyright notice may be reproduced or
utilized in any form or by any means, electronic or mechanical,
inc1uding photocopying, recording or by any information storage and
retrieval system, without written permission from the copyright owner.
This book is dedicated to my wife
Assumpta and our three boys -
Chichi, Chike and Chidi
 Contents

Contributors xi
Foreword xv
Preface xvii
Biographical sketch xix
Notable quality scholars xxi
Glossary xxv

1. Introduction to quality 1
Christian N. Madu
2. Comparing Deming's and Juran's philosophies to the
formation of total quality leaders' world views 21
Chu-Hua Kuei
3. Strategic quality planning 41
Bin Srinidhi
4. Quality improvement through learning curve analysis 87
Adedeji B. Badiru
5. Human resources and training 108
Amrik Sohal and Andrea Howell
6. Quality management in small and medium-sized companies
and strategic management 128
M. Dolores Moreno-Luzon, F.J. Peris and F.J. Santonja
7. Developing attributes of quality for Internet applications 154
Christian N. Madu
8. Strategic total quality management 165
Christian N. Madu
9. Accounting and capital budgeting for quality 213
Vasanthakumar N. Bhat
10. Success in AMT implementation and quality enhancement:
is there a link? 225
Hamid Noori, John L. Michela and Shailendra Jha
11. Service quality 245
Chu-Hua Kuei
viii Contents

12. Quality, productivity and information systems 260

Joak Jurison
13. Total quality management in the supply chain 275
Paul Levy
14. Involving the supply chain in design 304
Jeffrey K. Liker and S. Nazli Wasti
15. Self-assessment 320
Klaus J. Zink and Andreas Schmidt
16. Process performance, appraisal and employee development
planning 344
Ron S. Kenett and Marc E. Maisel
17. Introduction to ISO and ISO quality standards 365
Christian N. Madu
18. TQEM - methods for continuous environmental improvement 388
John F. Affisco
19. Benchmarking: a quest for continuous improvement 409
Injazz J. Chen and Kenneth A. Paetsch
20. Concurrent engineering 425
Joseph T. Emanuel and Dennis E. Kroll
21. Reengineering and continuous improvement 446
George W Arnold and M. Hosein Fallah
22. Quality function deployment 460
Mark A. Vonderembse and Tom Van Fossen
23. Introduction to probability and statistics 475
Christian N. Madu
24. Tools for quality control and process redesign 508
Nicholas C. Georgantzas
25. Statistical quality control 528
Christian N. Madu
26. Design of experiments: a polymer coating process 565
Nicholas Georgantzas
27. Quality engineering: loss functions, parameter design,
and robust quality 593
Shane J. Schvaneveldt and Takao Enkawa
28. Reliability and maintainability 611
Surendra M. Gupta
 Contents IX

29. Total quality management in China 626

Chyau Tuan and Linda Fung-Yee Ng
30. Total quality management in India: a tool with widening
acceptance 638
Surendra K. Kaushik
31. The development of national consciousness of quality:
the Singapore experience 650
Eric w.K. Tsang
32. Total quality management in Europe 665
Ton van der Wiele and Barrie Dale
33. Total quality management - implementation on the basis of
Poland 682
Edward Kindlarski and Ben Bella Jaoko
34. The development of total quality management in Denmark 700
Jens J. Dahlgaard and Ove Hartz
35. Total quality in Australia and New Zealand 717
Danny Samson
36. Quality management in developing economies 734
Christian N. Madu
37. Malcolm Baldrige, Deming Prize and European Quality
Awards: a review and synthesis 754
Pradeep Gopalakrishna and Mahesh Chandra
Appendix 769
Index 781
 Contributors

Dr John F. Affisco, Professor of Business Computer Information Systems

and Quantitative Methods, Frank G. Zarb School of Business, Hofstra
University, Hempstead, NY 11550, USA.
Dr George W. Arnold ENGSCD, Director Standards and Intellectual Prop-
erty, Lucent Technologies, Inc., Holmdel, NJ, USA.
Dr Adedeji B. Badiru, Professor of Industrial Engineering and Dean of
University College, University of Oklahoma, Norman, Oklahoma, USA.
Dr Vasanthakumar N. Bhat, Professor of Management Science, Lubin
School of Business, Pace University, New York, USA.
Dr Mahesh Chandra, Associate Professor of Computer Information
Systems and Quantitative Methods, Frank G. Zarb School of Business
Hofstra University, Hempstead, NY 11550, USA.
Dr Injazz J. Chen, Associate Professor of Operations Management DBA
Program Co-ordinator, College of Business Administration, Cleveland
State University, Cleveland, Ohio, USA.
Dr Barrie Dale, Professor of Quality Management, Manchester School of
Management, University of Manchester Institute of Science and Technol-
ogy, Manchester, UK.
Dr J. J. Dahlgaard, Professor, Research Group of Quality Management,
The Aarhus School of Business, AARHUS V. Denmark.
Dr Joseph T. Emanuel, IMET Department, Bradley University, Illinois,
USA.
Dr Takao Enkawa, Department of Industrial Engineering and Mgmt,
Tokyo Institute of Technology, Tokyo, Japan.
Dr M. Hosein Fallah, Product Realization Technologies, Bell Laborato-
ries, Holmdel, NJ, USA.
Dr Nicholas C. Georgantzas, Professor of Management Systems,
Fordham University, Lincoln Center, New York, USA.
Dr Pradeep Gopalakrishna, Professor of Marketing, Lubin School of
Business, Pace University, New York, USA.
xii Con tribu tors

Dr Surendra M. Gupta, the Director of the Laboratory for Responsible

Manufacturing and is on the faculty of the Department of Mechanical,
Industrial and Manufacturing Engineering at Northeastern University in
Boston.
Dr Dve Hartz, Associate Professor, Dept of Industrial Management,
Technical University of Denmark, Denmark.
Dr Andra Howell, Monash University, Faculty of Business and Econom-
ics, PO Box 197 Caulfield East, Melbourne, Victoria, Australia.
Dr Ben Bella Jaoko, Warsaw University of Technology, Institute for
Organization of Production Systems, Faculty of Production Engineering,
Quality Systems Group, Warsaw, Poland.
Dr Schailendra Jha, School of Business and Economics, Wilfred Laurier
University, 75 University Avenue West, Waterloo, Ontario, Canada.
Dr Jaak Jurison, Associate Professor and Deputy Chair, Information and
Communications Systems, Graduate School of Business Administration,
Fordham University, New York, New York, USA.
Dr Surendra K. Kaushik, Department of Finance and Economics, Lubin
School of Business, Pace University, One Pace Plaza, New York, NY
10038, USA.
Dr Ron S. Kenett, Senior Partner, Kenett-Preminger Associates, KPA Ltd
Management Consulting, Representing the Juran Institute in Israel,
Herzlia Pituah, Israel
Professor Edward Kindlarski, Warsaw University of Technology, Insti-
tute for Organization of Production Systems, Faculty of Production
Engineering, Quality Systems Group, Warsaw, Poland
Dr Dennis E. Kroll, IMET Department, Bradley University, Illinois,
USA
Dr Chu-Hua Kuei, Professor of Management and Management Science,
Lubin School of Business, Pace University, New York, USA
Dr Paul Levy, Centre for Research in Innovation Management, Brighton
Business School, University of Brighton, Falmer, Brighton, UK
Dr Jeffrey K. Liker, Associate Professor, Industrial and Operations Engi-
neering, University of Michigan, Ann Arbor, Michigan, USA
Dr M.D. Moreno-Luzon, Professor of Economics and Business Studies,
University of Valencia, Edificio Oriental Departamental, Valencia,
Spain.
Dr Christian N. Madu, Research Scholar, Professor and Program Chair,
Management Science Program, Lubin School of Business, Pace Uni-
versity, New York, USA.
 Contributors Xlll

Mr Marc E. Maisel, Senior Consultant, KPA Ltd Management Consult-

ing, Representing the Juran Institute in Israel, Herzlia Pituah, Israel.
Dr John L. Michela, School of Business and Economics, Wilfred Laurier
University, 75 University Avenue West, Waterloo, Ontario, Canada.
Dr Linda Fung-Vee Ng, Professor, Department of Decision Sciences and
Managerial Economics, The Chinese University of Hong Kong, Shatin,
Nt, Hong Kong.
Dr Hamid Noori, Professor of Technology and Operations Management,
School of Business and Economics, Wilfred Laurier University, Waterloo,
Ontario, Canada.
Dr Kenneth A. Paetsch, Assistant Professor, Department of Operations
Management, College of Business Administration, Cleveland State Uni-
versity, Cleveland, Ohio, USA.
Dr F. J. Peris, Professor of Economics and Business Studies, University of
Valencia, Edificio Oriental Departamental, Valencia, Spain.
Dr Danny Samson, Leslie Froggatt Professor of Manufacturing Manage-
ment and Director, Centre for Manufacturing Management, Melbourne
Business School Ltd, The University of Melbourne, Carlton, Victoria,
Australia.
Dr F. J. Santonja, Professor of Economics and Business Studies, Uni-
versity of Valencia, Edificio Oriental Departamental, Valencia, Spain.
Dipl.-Wirtsch.-Ing A. Schmidt, Assistant Lecturer, Industrial Manage-
ment and Human Factors, University of Kaiserlautern, Kaiserlautern,
Germany.
Dr Shane J. Schvaneveldt, Department of Business Administration,
Weber State University, Ogden, Utah, USA.
Dr Amrik Sohal, Monash University, Faculty of Business and Econom-
ics, PO Box 197 Caulfield East, Melbourne, Victoria, Australia.
Dr Bin Srindidhi, Associate Professor, Accounting and Information
Systems Area, Faculty of Management, Rutgers University, University
Heights, Newark, New Jersey, USA.
Dr Eric W.K. Tsang, Lecturer, School of Accountancy and Business,
Nanyang Technological University, Singapore.
Dr Chyau Tuan, Professor, Department of Decision Sciences and Mana-
gerial Economics, The Chinese University of Hong Kong, Shatin, Nt,
Hong Kong.
Dr Ton van der Wiele, Professor of Economics, Strategic Quality Man-
agement Institute, Erasmus Universiteit Rotterdam, Rotterdam, The
Netherlands.
xiv Contributors

Mr Tom Van Fossen, Leelanau Industries, 6052 E. Traverse Highway,

Traverse City, Michigan, USA.
Dr Mark A. Vonderembse, Professor of Operations Management and
Director Manufacturing Management MS and PhD Program, The Uni-
versity of Toledo, College of Business Administration, Toledo, Ohio,
USA.
Dr S. Nazli Wasti, Assistant Professor, Department of Management,
Middle East Technical University, Turkey.
Dr Klaus J. Zink, Professor, Chair for Industrial Management and
Human Factors, University of Kaiserlautern, Kaiserlautern, Germany.
 Foreword

Any handbook on a major topic will have inclusions and omissions. This
book contains vast comprehensive inclusions of virtually all explorations
on quality management. Handled by 47 authors based in 13 different
countries with extensive experience on world class quality management,
this book is invaluable as a reference guide, class usage and professional
help.
Quality issues have gained great importance as the business world
became global and firms across the many countries sought to compete in
both price and quality. Thus, product cost and quality of product or
service became the predominant determinant of market share and profit.
A long-term view towards attaining market share through reputation as
opposed to short-term profit making has become the rule of modern
business success. Certifications such as the ISO 9000 series and awards
such as Baldrige are sought by companies as proof of the quality of their
products to gain entry into the world market-place. At the same time, it
is recognized that world class quality requires a commitment that far
exceeds what is needed to get these certificates. Thus, this Handbook,
quite appropriately, discusses not only the requirement for attaining
these certificates and the rules for the awards but goes on to provide help
to compete in the global market with world class quality.
Quality can be improved through continuous (Kaizen) improvements
and/ or reengineering efforts including process and design innovations.
Chapters are included that describe these approaches including practical
tools for redesign, self-assessment, human resource training and bench-
marking. Contributions include process performance appraisal, service
quality management and concurrent engineering. Quality concerns with
respect to productivity, information systems and advanced manufactur-
ing technology are addressed. How quality can improve through proper
learning curve analysis is explained in one article.
Quality consciousness should permeate the entire value chain. Towards
this end, there are chapters on effecting quality awareness through supply
chains.
A good handbook should deal with details of quality practices in various
countries of the world. This is done thoroughly here in several chapters
focusing on several countries of Europe and Asia. Countries detailed
include Denmark, Poland, Australia, New Zealand, Singapore, China and
India. This provides a good comparative perspective on practices.
xvi Foreword

Quality studies are not useful if they are not tied to strategies for
improvement. Several chapters consider important strategies for quality
improvement and initiation and performance evaluation through audit-
ing. There is a separate chapter on quality deployment function which is
an important strategic tool.
Implementation of quality analyses and strategy can be effective only
when the 'how to' of quality is learned. The editor has included ample
coverage on the statistical aspects of the tools. Statistical quality control,
design of experiments, Taguchi loss functions, reliability and maintaina-
bility are key topics that are covered in good detail and clarity. To aid the
unprepared reader, there is a good chapter on introduction to probability
and statistics.
The editor, Professor Christian N. Madu is a well-recognized authority
on quality with numerous academic and professional publications. As
the Editor-in-Chief of the premier quality journal International Journal of
Quality Science, he occupies an enviable position that has enabled him to
persuasively summon so many experts to write for this Handbook. These
chapters are specifically written for this book and are not just reprints of
previously published manuscripts. Thus, there is a cohesiveness to the
treatment of the subject. This Handbook will be very valuable to both the
professionals who wish to consult an authoritative book on quality and
the academics and students who wish to keep up with the current
evolution on the study of quality management.

Kashi R. Balachandran
Professor of Accounting and Operations Management
Stem School of Business
New York University
New York, NY
 Preface

The Handbook of Total Quality Management is written as an introduction to

total quality management with the intention of providing carefully
selected and high quality chapters by reputable authors in the field. With
the growing emphasis on total quality management and the proliferation
of articles in this area, it is important to carefully organize this body of
knowledge in a substantial form. Authors have emphasized both theory
and practice and have drawn from several important quality applica-
tions. To broaden the reader's view of quality, authors were selected
from almost all continents covering more than 12 countries and national-
ities. These authors present total quality management approaches from
different views. We have also included country-specific approaches to
quality to illustrate the cultural dependence of quality and to demon-
strate that quality can be adapted in any situation.
A mix of articles from both industry and academic experts are offered
and we tried as much as possible to cover every pertinent topic in total
quality management. The Handbook therefore, promises to be an impor-
tant reference manual which can be used as quick reference in industrial
application and as a text in teaching courses or conducting seminars on
total quality management.
Each chapter is written with the reader in mind. The aim is to commu-
nicate and convey the thoughts of the author. Thus, the articles are
readable. It is inevitable that a discussion of quality management will
contain statistics. Though statistics may be hard for some readers, we
have added a chapter on the "Introduction of Probability and Statistics".
This chapter hopefully, will help prepare the reader for the more
advanced topics on statistics.
The reader will find that this Handbook is very comprehensive and
contains major topics that are related to total quality management. The
composition of the Handbook includes all related topics in Total Quality
Management (TQM), emerging technological issues such as Internet
applications, re-engineering and concurrent engineering, statistical issues
in quality, quality standards and awards, quality management practice in
different countries and service quality. The exposition to these topics will
help the reader to venture into more details and advanced topics. The
reader is bound to find this Handbook to be the most comprehensive
handbook of TQM available in the market.
The Handbook could not have been possible without the devotion and
XVlll Preface

commitment of the authors. Each one of them has worked relentlessly to

produce an excellent piece. I am greatly indebted to them. Of course, no
one deserves more acknowledgment than my Assistant Editor - Ms
Koula Kilaras whose job was to contact the authors and follow-up with
all the communications and deadlines. Without her assistance this project
would have been impossible. It is Chapman & Hall's decision to publish
this work that made the project possible. I greatly appreciate the support
that Mark Hammond - Senior Editor - has given to this project and the
frequent communication I received for more than a year through e-mail
services from his editorial assistants Joanne Jones, Deborah Millar and
Alison Provan. All these people have helped to keep up the pressure and
now here is the book. I thank my good friend Chu-Hua Kuei for his
support through this project and his dedication to make sure that this
project was completed on time. I also thank K.R. Balachandran of New
York University for writing the Foreword to the Handbook. All the above-
mentioned have contributed in making this an excellent book that our
readers will be proud of.
Christian N. Madu
Pace University
New York
 Biographical sketch

Christian N. Madu is research scholar, professor and chair of the

management science program at the Lubin School of Business, Pace
University. He is the author/co-author of more than 75 research papers
in several areas of operations research and management science that
have appeared in journals such as Decision Sciences, lIE Transactions,
Journal of Operational Research Society, Applied Mathematics Letters, Mathe-
matical and Computer Modeling, Long Range Planning, European Journal of
Operational Research, OMEGA, Technological Forecasting and Social Change,
Socio-economic Planning Sciences, Futures, Quality Management Journal and
several others. He is the author/co-author of seven other books includ-
ing Strategic Total Quality Management (co-author Chu-Hua Kuei), Manag-
ing Green Technologies for Global Competitiveness and edited Management of
New Technologies for Global Competitiveness. Dr Madu is also the editor-
in-chief of the International Journal of Quality Science and is the President
of the Center for Quality and Technology Management - a consulting
group that also conducts seminars and in-house training sessions for
corporations around the world. He has served as a consultant to several
organizations. Dr Madu can be reached through his e-mail address at
ChrisMadu@aol.com.
 Notable quality scholars

In this section, we briefly introduce quality scholars whose works have

had significant impact on the practice of quality.
W. Edwards Deming - considered by many as the father of TQM
movement, a notable author and lecturer of statistical quality. Dr Deming
is credited for having helped Japanese manufacturers improve their
quality after the Second World War. The coveted Japanese quality award
- the Deming Prize - is named in his honor. Some of his contributions
include the System of Profound Knowledge which consists of four major
and interrelated parts: appreciation of a system, knowledge about varia-
tion, psychology of individuals, society and change; Deming's 14 points,
an outline of management principles that will help to achieve quality
improvement; Deming chain reaction, an exposition of the relationship
between productivity and quality and job creation; PDCA (plan-
do-cheek-act) cycle though not developed by Deming, he popularized its
use in planning for quality; and Red Bead Experiment used extensively
in his lectures to illustrate why workers should not be ranked to identify
the good and bad performers since often times, the problem may be with
the system and not the worker.
Dr Deming was born in Sioux, Iowa, on October 14, 1900, and grew up
in Cody, Wyoming. He earned a bachelors degree in physics from the
University of Wyoming and a PhD in mathematical physics from Yale
University in 1928. He worked for the United States Department of
Agriculture where he developed a keen interest in statistical control
through his encounter with Dr Walter Shewhart in the mid-1920s while
working with Western Electric Co. He also worked for the US Bureau of
the Census and the US weapons industry. He later worked as a con-
sultant and a Distinguished Professor in Management at Columbia
University. In 1960, he was the recipient of the Order of Sacred Treasure,
2nd Class, from the Emperor of Japan. He died in 1993 at the age of 93.
Joseph M. Juran - Juran and Deming are the pre-eminent champions
of quality and they considerably share in both contribution to the current
quality movement and status. Juran's contributions focus on the four
areas: definitions of quality and the cost of quality, quality habit, quality
trilogy and Universal breakthrough sequence. He defines quality as
"fitness for use." This is one of the most popular definitions of quality
since it encompasses quality of design, quality of conformance and
engineering issues such as availability, safety and field use. He also
xxii Notable quality scholars
introduced the cost of quality in the 1951 edition of his Quality Control
Handbook. He identifies four types of cost of quality namely, internal
failure costs, external failure costs, appraisal costs and prevention costs.
By exposing management to the cost of quality, they hopefully will pay
attention to quality improvement efforts.
With 'quality habits', he insists on the need for a firm to have a focused
approach to continuously improve quality and this should develop into a
habit of quality that will seek realistic goals and objectives. The guide-
lines that achieve quality improvement should be clear and management
must take action to successfully build the quality habit.
The quality trilogy involves three inseparable parts that constitute
actions the firm must take to continuously improve quality. These are
quality planning, quality control and quality improvement.
Juran also offers the Universal breakthrough sequence which logically
is similar to reengineering. This consists of a set of actions management
must take to make a major leap in quality. This involves general actions
that are applicable to any organization problem. According to Juran,
breakthroughs follow a universal sequence and that sequence involves
the following: proof of need, project identification, organizing for
improvement, diagnostic journey, remedial action, resistance to change
and holding onto gains.
Juran like Deming was exposed to statistical quality control by Dr
Walter Shewhart at about the same time. He was born on 24 December,
1904 in Braila, Romania and grew up in Minneapolis, Minnesota. He
received a bachelor of science in electrical engineering from the Uni-
versity of Minnesota in 1924 and a JD from Loyola in 1935. In 1981, he
was recipient of the Order of Sacred Treasure, 2nd Class, from the
Emperor of Japan. He currently serves as the Chairman emeritus, Juran
Institute Inc., in Wilton, Connecticut.
Harold F. Dodge - is known for his contributions to statistical quality
control. In collaboration with Harry. G. Romig, he developed acceptance
sampling plans that are widely used for product inspections. These
acceptance sampling plans are widely known as Dodge-Romig sampling
plans. In 1940, they published acceptance sampling tables for four differ-
ent types of sampling namely: single-sampling lot tolerance tables,
double-sampling lot tolerance tables, simple-sampling average outgoing
quality limit tables and double-sampling average outgoing quality limit
tables. He was also instrumental in developing important acceptance
sampling concepts such as consumer's risk, producer's risk, operating
characteristic curve and average outgoing quality level.
Harry G. Romig - in addition to the work he did with Harold F.
Dodge regarding acceptance sampling procedures (see Harold F. Dodge),
he developed the first sampling plans using variable data. He also
developed the concept of average outgoing quality limit.
Philip B. Crosby - Crosby is an advocate of zero defects. According to
 Notable quality scholars xxiii

him, quality is free in the long run. He also introduced the Management
Maturity Grid to assess management and its current position on quality.
This Grid can help redirect future organizational emphasis on quality.
He offered 14 steps for quality improvement that can be used to im-
plement the Management Maturity Grid. His contention that zero
defect can be achieved and that quality is free have generated a lot of
debate.
Kaoru Ishikawa - a well respected Japanese professor of management.
He introduced the cause-effect diagram also known as the fishbone or
Ishikawa diagram. This diagram classifies problems in four places:
methods, manpower, material and machines or what is known as the
4Ms. Potential quality problems can be identified and analysed. Ishikawa
also introduced quality circles. Quality circles are gradually being
replaced by teams primarily because teams are empowered while quality
circles are not.
Shiego Shingo - Shiego Shingo is a co-developer of the inventory
management technique known as just-in-time system. Mr Shingo from
Japan is known in Japan as Mr Improvement. He introduced what is now
known as Fail-Safe design or the Shingo System. This method is based on
using source inspection and the poka-yoke system to achieve zero
defects. Shingo argues that statistical quality control methods provide
after the fact information and do not prevent defects. He argues that
checks must be introduced along the process to prevent defects. This
involves three steps: successive check inspection, self-check and source
inspection.
Yoji Akao - a well respected professor from Japan, Professor Akao
introduced the quality function deployment (QFD). In the West, QFD is
popularly known as the 'House of Quality'. QFD offers an important
way for corporations to understand the needs and wants of their cus-
tomers. It also offers the opportunity for benchmarking with world class
leaders.
Masaaki Imai - brought to light in the West, the practice of continuous
improvement in Japan or what is often referred to as the principles of
Kaizen in Japan. Japanese industrial successes are often attributed to
Kaizen which calls for small incremental improvements in a process.
Continuous improvement is often times synonymous to total quality
management.
Genichi Taguchi - a Japanese statistical consultant, revolutionalized
the applications of statistics to quality and redefined quality. In his
views, products should be robust enough to withstand variations that
may result from environmental and production factors. His methods are
based on the efficient use of experimental designs. Although his experi-
mental design procedures are similar to standard design methods, he,
however, offered tables and graphs (linear graphs) that made it easier for
practitioners to use. His other major contribution is in his definition of
xxiv Notable quality scholars
quality using a quality loss function (QLF). He defines QLF as a loss to
society for producing inferior products. QLF measures the cost of quality
by looking at variations from the target value or specification.
George P. Box - is a well respected professor of statistics in the United
States. He is well known for his contributions on statistical design of
experiments.
Walter A. Shewhart - is regarded by many as the father of statistical
quality control. He is credited with having introduced both W. Edwards
Deming and Joseph M. Juran to statistical quality control. He developed
the statistical control charts and defined two types of causes of variation:
natural and special causes of variation. Also, he introduced the plan-
do-study-act (PDSA) cycle which is often referred to as the Shewhart
cycle. Dr Deming renamed the PDSA cycle the PDCA cycle with C
referring to check replacing the S for study.
Armand V. Feigenbaum - is one of the leading advocates of total
quality control. In fact, the term 'total quality control' as popularly used
in Japan and known as 'total quality management' in the US and most of
Europe, was the title of his 1951 book. He originated this concept and has
contributed significantly to the TQM movement through his writing and
consulting work. He is the founder and president of General Systems Co.
Michael Hammer - is known for his pioneering work on re-
engineering. According to Hammer and Champy in their 1993 book,
re-engineering is defined as 'the fundamental re-thinking and radical
design of business processes to achieve dramatic improvement in critical,
contemporary measures of performance, such as cost, quality, service
and speed'. This contrasts with continuous improvement which seeks for
gradual and incremental improvements over time.
 Glossary

Acceptable quality level (AQL) Minimum number of defectives that will be

contained in a lot before the lot is accepted as a good lot.
Acceptance criterion Established criterion that shows the maximum allow-
able defects in a sample for the lot to be accepted as meeting the quality
standard.
Acceptance sampling A sampling procedure applied on existing goods to
decide whether to accept or reject the entire lot based on the quality
observed from the random sample.
Acceptance sampling plan A plan that specifies the criteria to determine if
a lot should be accepted or rejected based on the number of defects
found in the sample. This plan specifies the sample size and the
maximum allowable defects to be found in a sample.
Accreditation The use of accreditation has become popular especially
since the introduction of ISO 9000 series standards. It is used to imply
certification of the quality improvement programs or processes of an
organization by a duly recognized agency.
Analysis of variance A statistical procedure commonly used to analyse
experimental data to estimate variance associated with specific sources of
variation.
Attribute measurement Information obtained for quality purposes may be
presented in qualitative or categorical forms. For example, a sample may
be examined to determine if there is defect or no defect, information may
be classified as yes/no, go/no-go, good/bad, and others. These discrete
classifications are known as attribute measurement and the control charts
used for attribute charts include percent chart (p-chart), count chart
(c-chart) and others.
Availability The proportion of time the product or process is able to
perform its functions as expected.
Average outgoing quality The quality of the lot after defective items found
through inspection have been replaced.
Average outgoing quality limit (AOQL) The highest average percent defec-
tive in a sampling plan.
XXVI Glossary

Benchmarking A firm compares its practice to that of world class leaders

with the intention of learning from the best performer and improving its
own process.
Big Q, Little q This term is used by Joseph M. Juran to illustrate the
differences of organization-wide quality management efforts (Big Q) and
limited application of quality management such as focus on only product
or process (Little q).
Capability index This index shows how well the items that are being
produced fit into the design limits.
Check sheet One of the seven tools of quality, it is comprised of a simple
data-recording device that is custom-designed by the user to enable
easier interpretation of results.
Common causes These are variations in a process that can be explained
only by chance occurrence. They are also referred to as normal or natural
variations.
Conformance Used to imply that product or services are performing
within the design specification.
Consumer's risk The risk incurred when a poor quality lot is accepted.
This is also known as the Type II error.
Continuous improvement (Cl) A management philosophy that views
quality improvement as a never-ending process that will always lead to
incremental improvements.
Continuous improvement process This is a never-ending process through
which processes are continuously improved. Many of the improvements
may be incremental and not as drastic as in re-engineering. This process
in Japan is often referred to as Kaizen.
Control chart A graphical display of process output variable to determine
if the process is stable or out of control.
Cost of quality A classification of the cost of quality into four groups:
prevention, appraisal, internal and external failure costs. These costs are
used to demonstrate the importance of prevention and cost savings that
can be achieved through quality practice.
Customer satisfaction A gauge on how well customer requirements are
designed into a product or service.
Customer-supplier partnership A partnership between the buyer and the
supplier that leads to long time commitment and co-operation in estab-
lishing and improving the quality of products supplied to the buyer by
the supplier.
 Glossary XXVll

Deming Prize Given in Japan in recognition of business excellence

through quality. It represents to the Japanese what Malcolm Baldrige
represents to Americans.
Deming's chain reaction A relationship map by Deming to illustrate the
association between quality and productivity and how that will lead to
job creation. Simply put, quality improvement leads to cost reduction
which leads to productivity improvement. As a result, markets are
captured, the organization stays in business and is able to provide jobs
and more jobs.
Deming's 14 points A list of management philosophies provided by W.
Edwards Deming as preconditions to achieving total quality
management.
Dependability Proportion of time a product is available and capable of
performing its function.
Design of experiment A statistical procedure for planning and controlling
experiments and analysing and interpreting the outcomes of the
experiment.
Employee involvement Participation of employees in decisions on how to
improve their work processes.
Empowerment Employees are granted authority to take action as they see
fit to improve their work processes without approval from their
superiors.
External customer The end user or consumer of a product or service who
is not affiliated to the supplier.
Fail-safe design See The Shingo System.
14 points Generally refers to Deming's 14 points that outline his manage-
ment philosophies on how to improve or achieve quality in an organiza-
tion. Crosby also has his own 14 points.
Histogram A graphical display of the distribution of data to study any
underlying patterns that may exist. It is also one of the seven basic
quality control tools.
Hoshin planning The strategic planning process used in Japan. This
involves development of vision statement that takes a long term view of
the goals and plans of the organization. It is periodically reviewed to
ensure that it is still aligned with the goals of the organization.
House of quality A house-shaped matrix that is used to make quality
function deployment operational. It contains information on customer
attributes and how they can be achieved through engineering
specifications.
XXV111 Glossary

Inspection Examination of a product or service to determine if it conforms

with pre-specified quality guidelines.
Instant pudding A term used to refer to the thinking that quality and
productivity improvement can be quickly achieved through affirmation
of faith rather than focusing on long-term quality improvement efforts
such as training and education.
Internal customer The end user or consumer of a product or service who is
affiliated to the supplier.
Ishikawa diagram Also known as fishbone diagram or cause-and-effect
diagram. The aim of this diagram is to identify the main causes and sub-
causes of a problem. These causes are attributed normally to four factors
known as the 4Ms - Man, Machine, Material and Method. These causes
lead to the symptom or problem or effect.
ISO 9000 A series of quality standards ranging from design and develop-
ment through procurement, production, installation and servicing that
were adopted by the International Organization for Standardization
(ISO) in 1987.
ISO 9000 certification Certification issued to firms that have followed the
ISO guidelines.
ISO 14000 series Like ISO 9000 series, it is a series of five standards that
are concerned with establishing guidelines and auditing of environ-
mental management systems. The focus is on environmental issues.
Leadership Quality improvement is achieved when top management or
corporate leaders participate, commit time, resources and effort and
develop clear visions and goals and most importantly, know how to
manage people and change.
Lot Quantity of items generated from the production process through
which a random sample is taken for quality evaluation.
Lot sentencing This is the decision rule set up to decide whether to accept
or reject a lot.
Lot tolerance percent defective (LTPD) When the percentage of defectives in
a lot is greater than a specified amount, the lot is defined to be bad and
is termed lot tolerance percent defective.
Lower and upper specification limits Lower and upper boundaries that are
used to define the limits of variations for a product characteristic.
Maintainability Addresses the ease of servicing a product and the ease of
restoring it to its operation state prior to failure.
Malcolm Baldrige National Quality Award The highest quality award given
in the United States by the US government in recognition of quality as a
 Glossary xxix

major part of successful business strategy. This award is administered by

the United States Department of Commerce.
Mean time between failure The average time interval or space between
failures for a repairable product.
MIL-Q-9858A A military standard that is used to describe the require-
ments for a quality program.
MIL-STO-105E A military standard that is used to describe the sampling
procedures and tables when inspection is done by attributes.
MIL-STO-45662A A military standard that is used to describe the require-
ments for creating and maintaining a calibration system.
Multiple sampling plan Unlike a single sampling plan, multiple samples
are taken to determine whether to accept the lot, reject the lot, or to
continue sampling based on the number of defects found in the
sample.
100% inspection A procedure whereby all items produced are inspected.
Operating characteristic (OC) curve A curve that displays different sam-
pling plans.
Organizational culture Widely held beliefs, value system and behaviors in
an organization. Organizational culture is formed over a long period of
time and influences the adaptability of new technologies. To benefit from
such new technologies such as quality, it may be necessary to develop a
conducive culture and environment.
Out of spec Used to denote that a product does not satisfy a given quality
specification.
Pareto analysis was introduced by Vilfredo Pareto an Italian economist.
The aim of this analysis is to prioritize problems for solutions and it is
based on the concept of 'the vital few versus the trivial many'. Joseph M.
Juran popularized its use in studying quality problems and adopted the
80-20 rule which simply states that 80% of the problems observed in a
process can be accounted for by 20% of the causes of these problems.
This focuses attention in solving the critical few problems. However, it
does not help to identify these problems.
P chart A control chart that is used to assess the conformance of process
output to specifications when the output of the process is measured in
terms of proportion or percentage of defects.
POCA A planning tool frequently associated with Deming. This tool
illustrates four steps that form a loop on how to continuously improve
quality. The PDCA means plan-do-check-act cycle.
Poka-yoke This is based on making the workplace mistake-proof.
xxx Glossary

Process capability A statistical measure of process variability for a given

attribute.
Producer's risk The risk incurred when a good lot is rejected. It is also
known as the Type I error.
Quality audit An independent examination of the quality program to
determine if quality initiatives comply with planned quality programs.
Quality circles Group of workers that meet periodically to identify ways
to improve their products and processes.
Quality engineering A focus on maximizing the quality of processes and
products.
Quality function deployment An approach to understand customers' needs
known as the voice of the customer and integrate them into the design
specifications of products.
Quality Loss Function (QLF) Developed by Genichi Taguchi relates the
cost of quality to variation in a process from the target.
Quality science A rigorous examination of the fundamentals and theories
of quality.
Quality trilogy Joseph M. Juran views quality management from a trilogy
that consists of quality planning, quality control and quality
improvement.
Random sampling A sampling procedure that guarantees equal chance to
all observations in the population.
R chart A control chart that is used to measure the precision in the output
of a process variable.
Rectification When a lot is rejected, it is effectively screened and all non-
conforming items are replaced by conforming items. This process is
known as rectification.
Red bead experiment An experiment used widely by Deming to illustrate
the theory of variation by showing that workers' performance may be
attributed to natural variations inherent in the system.
Re-engineering Involves a fundamental rethinking and radical redesign of
a business process. It requires complete overhaul of the entire process
and management systems.
Reliability The proportion of time a product performs its intended func-
tion under normal conditions without failure.
Right the first time A TQM concept to illustrate that doing things right the
first time saves money to the organization in the long run. Its focus is on
prevention rather than detection of defect.
 Glossary xxxi
Robust design This was introduced by Genichi Taguchi. With robust
design, the product is designed to perform over a wider range of
conditions because according to Taguchi it is easier to design products
that will be insensitive to environmental factors than trying to control
such factors.
Scatter diagram Also known as cross plot it is a graphical display of two
variables normally dependent and independent variables to study their
association. It is also one of the seven basic quality control tools.
Seven tools of quality These are tools that organizations could use to better
understand and manage their processes to improve quality. It is com-
prised of cause-and-effect diagram, check sheet, control chart, flow chart,
histogram, Pareto chart and scatter diagram.
Shewhart cycle The same as the PDCA or PDSA cycle. This was developed
by Walter Shewhart but its application was made popular by W.
Edwards Deming.
Shingo System Introduced by Shiego Shingo known as Mr Improvement
in Japan, focuses on achieving zero defects through the use of source
inspection and poka-yoke. Shingo's approach is to introduce quality
control checks within the process rather than at the end of the process as
done in SQc.
Signal-to-noise ratio Also known as SIN ratio is a performance statistic
developed by Genichi Taguchi. It is an attribute-type performance statis-
tic that can be used to reduce product or process variation by carefully
selecting parameter settings in a experiment. There are basically three
types of SIN ratios: the smaller the better, the larger the better and the
nominal ratio.
Single sampling plan A procedure where a single sample of size n is taken
from a lot and inspected to determine if the number of defectives is less
than or equal to a critical number c. If so, the lot is accepted otherwise it
is rejected. The term c is known as the acceptance number and it is the
maximum number of defects that can be present in the sample before the
lot is rejected.
Six-sigma quality Made popular by Motorola Corporation is derived from
the normal probability distribution and implies that only 3.4 defects are
expected per million parts.
Special causes These are variations in the process that are correctable and
may be attributed to factors inherent in the process. They are often
referred to as assignable causes.
Stable process A process that is in control or meeting specified guidelines
is said to be a stable process.
xxxii Glossary
Statistical process control Involves testing of random samples of outputs
from a process to determine if the process is stable or producing items
that conform to specifications.
Statistical quality control (SQC) Statistical analysis of quality that involves
acceptance sampling and statistical process control.
Taguchi methods Developed by Genichi Taguchi, refers to statistical
methods used to optimize the combination of product and process
variables to achieve robust design.
Teams Work teams that are formed as in quality circles, to identify ways
to improve products and processes. However, unlike quality circles,
teams are empowered.
Total quality control A concept originated by Armand V. Feigenbaum and
used as a title of his 1951 book Total Quality Control. This concept is based
on a company-wide application of quality. Also see total quality
management.
Total quality environmental management The application of total quality
management concepts to environmental problems.
Total quality management A company-wide application of quality that
requires the involvement and participation of everyone in the organiza-
tion and a strong support and commitment from top management.
Type I error Also known as the producer's risk can be seen in the quality
context as the error committed when a good lot is rejected and classified
as defective.
Type II error Also known as the consumer's risk is the error committed
when a bad lot is accepted as meeting the quality guidelines or
specifications.
Variable measurement This form of measurement is commonly used for
items that are measured in a continuous scale. For example, weight of
cereal, room temperature, drug content in milligrams. The control charts
used here are the x-bar and R-charts.
X chart A control chart that is used to measure the accuracy in the output
of a process variable.
Zero defects Introduced by Philip B. Crosby to illustrate the importance of
continuous improvement efforts to reduce defects and the cost of poor
quality.