CHAPTER 9

QUALITY
Learning Objectives

1. Definition of quality and TQM

2. The important of quality.
3. Tools of TQM.
What is quality?
 Perceived quality – the extent where purchase
meet criteria determines the quality in our eyes.
 Performance to the standard expexted by the
customers – Fred Smith
 Meeting the customer’s need first and every
time – GSA
 Providing customers with products and services
that consistently meet their needs and
expectations- Boeing
What is quality?
 W. Edward Deming – defined quality by
the agent / who is the judge of quality?
 Common elements of quality – involves
meeting or exceeding customers
expectations, applies to products, services,
people, processes and environments, and
it is an ever-changing state
Perspectives on Quality
 Consumer Perspective
◦ Quality can be defined as the degree to
which the product or service meets the
expectations of the customer.

 Producer Perspective
◦ Quality can be defined as the degree to
which the product or service conforms to
design specifications.
The Importance of Quality
 Positive company image
◦ One way is through gaining a reputation for
high-quality products.
◦ Helps firm to recruit valuable new employees,
accelerate sales of its new products & obtain
needed loans from financial institutions.
 Lower costs and higher market share
 Decreased product liability costs.
Factors for Assessing Quality
 Product Factors
◦ Aesthetics, features, performance,
reliability, serviceability, durability,
conformance, and perceived quality.

 Service Factors
◦ Responsiveness, reliability, assurance,
empathy, and tangibles.
What is TQM?
 Commitment to excellence by everyone
in an organization that emphasized
excellence achieved by teamwork and a
process of continuous improvement –
Mondy
 Integration of all functions and processes
within an organization in order to achieve
continuous improvement of the quality of
goods and services. The goal is customer
satisfaction.
What is TQM?
Totally integrated effort for gaining
competitive advantage by continuously
improving every facet of an organization’s
activities.
Total – everyone associated with the
company is involved in continuous
improvement
Quality – customers’ expressed and implied
requirements are met fully
Management – executives are fully
committed
The Benefit of TQM
 Quality works can give competitive
advantage.
 Improve customers satisfaction.
 Reduce wastage in time and materials
◦ As people learn to be more productive by
minimizing cost & maximizing profits.
 Improve & boost the morale of employees
◦ When the workers being more productive.
 Can also facilitate JIT (just-in-time) concept.
Difference between TQM and
Traditional management
TQM Traditional
 Customer focus Management
 Quality first  Management focus

 Multiple quality  Profits first

dimensions  Single quality
 Management and dimensions
workers involvement  No worker
 Process oriented involvement
 Results-oriented
History of Quality
W. Edward Deming
 Quality as a predictable degree of uniformity
and dependability, at low cost and suited the
market
 Deming Chain Reaction – quality improves, cost
will decrease and productivity will increase
resulting in more jobs, greater market share and
long-term survival
 Top management has the primary responsibility
to achieve product quality
Deming- Principles of TQM
1. Create and publish to all employees a
statement and purpose of the company
2. Learn the new philosophy
3. Understand the purpose of inspection for
improvement of process and reduction of cost
4. End the practice of awarding business on the
basis of price tag alone.
5. Improve constantly and forever the system of
production and services
Deming- Principles of TQM
6. Institute training
7. Teach and institute leadership
8. Drive out fear, create trust and a climate for
innovation
9. Optimize toward the aims and purpose of the
company, efforts, teams and groups
10. Eliminate exhortation for the work force
11. Eliminate numerical quotas for production,
instead, learn and institute methods of
improvement.
Deming- Principles of TQM

12. Remove barriers that rob people of

pride for their workmanship
13. Encourage education and self-
improvement
14. Take action to accomplish the
transformation
History of Quality
Joseph M. Duran
 Quality is fitness for use in terms of
design, conformance, availability, safety and
field use.
 Closely related to customers
 Focus on top-down management and
technical methods
History of Quality
Philip B. Crosby
 Quality is defined as conformance to
requirements, not “goodness’
 The system in achieving quality is prevention
not appraisal
 Performance standard is zero defect
 The measurement of quality ids the price of
non-conformance
 Quality is free because the small costs of
prevention will always be lower than the costs
of detection, correction and failure
History of Quality
Kaoru Ishikawa
 Introduce quality circle
 Managers learned to take the worker’s
suggestion and allow then to be
implemented
 Introduced internal customers
 Suggested the output of one department
be given to another department as if they
were customers
Main ideas in TQM

 There are five main ideas of TQM:

o a system approach,
o the tools of TQM,
o a focus on customers,
o the role of the management and
o employee participation
A System Approach
 The foundation to understand
organizations as a system
 Dobyns and Crawford – the social or
cultural system, the managerial system
and the technical system
A System Approach

“a series of functions and activities… within

an organizations that work together for
the aim of the organization.”
 Part of the system must support each
other
 A task of management involves having
people focus on the aim of the system.
A System Approach
The Cultural System
 Referred to as social system
 Set of beliefs and the resulting behaviors
that are shared throughout the
organization
 At time we need to change the cultural
system to implement quality programs.
A System Approach
The Technical System
 Made up of the technologies used in the
physical structure
 E.g. ergonomics considerations, computer
software and hardware configurations,
and the capital investments
 All these technologies used to accomplish
the company’s mission
A System Approach
The Management System
 it is seen as “the effectiveness of those
processes by which an organization
manages its human and physical assets”.
 TQM requires that workers incorporate
attention to quality at every step in the
manufacturing process and that managers
seek out root causes of variations.
The Tools of TQM

 Statistical process control techniques by

Deming
 Cause and effect diagram/fish bone
diagrams - Ishikawa
 Benchmarking / comparing own product
and processes against the very best in the
world
Fish Bone Diagram
A Focus of Customer
 Internal and external customers
 Peter R. Sholtes, “ external customers purchase the
product, financially supporting the organization.
Therefore it is important to satisfy these people. Inside
the company, employees pass on their work to other
employees, who are their internal customers. Similarly,
external suppliers are the people outside the
organization who sell the material, information, services
to the organization. Inside the company, employees
receive work passed on from other people in the
organization, who is known as the internal supplier.
Therefore worker, is a customer of preceeding workers;
and each of tem has customers, the people to whom
the worker passes on his or her work”.
The Role of Management

 Top managers – need deep commitment to

quality and continuing effort to make sure
quality values are understood accepted by
everyone in the company
 Lower level managers – learn how to pass on
authority and responsibility to the people they
work with
 Senior executives- make sure that other
managers understand and accept the principles
of Total Quality
Employee Participation

 The keyword is… EMPOWERMENT

 Lets employees make decisions at all
levels of an organization without asking
for approval from managers
5 Pillars of TQM
 Product – focal point for organizational
purpose and achievement
 Process – quality in the process
 Organization – the right organization
 Leadership- proper leadership
 Commitment – strong and bottom-up
Productprocesorganizationleadership
 commitment
Problems in Implementation of TQM

1. Lack of management support

2. Following what other people are doing.
3. No viable communication system.
4. Lack of training.
5. Forgot to entertain customers changing
needs and wants
6. Forget about the internal customer
7. Empowerment not practiced
Problems in Implementation of TQM

8. Failure to lead
9. Leaving out customer needs in planning
10. Quality is not by inspection.
11. Changing targets each year.
Exercise
 Explain what is quality
 Explain what is total quality management
 Explain the basic management of both
Deming and Juran
 Discuss the main ideas of total
quality management
THANK YOU