MANAGEMENT
The process of dealing with or controlling things or people.
Management is a set of principles relating to the functions of
planning, organizing, directing and controlling, and the
application of these principles in harnessing physical, financial,
human and informational resources efficiently and effectively to
achieve organizational goals.
Management can be defined as the process of administering and
controlling the affairs of the organization, irrespective of its
nature, type, structure
DIMENSIONS OF QUALITY
Dimensions of quality are the different features of product or
service
1. Functionality – the core features and characteristics of
a product that satisfy the customer
2. Reliability – indicator of durability of products.
3. Usability – product should be user friendly. The user
should be able to use the product easily without the help
of an expert.
4. Maintainability – ease with which a product can be
maintained in the original condition (measured as mean
of time to repair)
5. Efficiency – how much output is taken by different
products on giving same input.
What is the difference between effectiveness and
efficiency? They are two buzzwords that are popularly
used by CEOs and Sales VPs in charting the course of their
organization. Yet, they are also commonly misused and
misinterpreted, not just in the lexicon of business-speak
but also in daily use. For all intents and purposes, let’s
begin by defining efficiency and effectiveness in
general terms
Effective (adj.) – Adequate to accomplish a purpose;
producing the intended or expected result.
Efficient (adj.) – Performing or functioning in the best
possible manner with the least waste of time and effort.
The difference between effectiveness and efficiency can
be summed up shortly, sweetly and succinctly –
Being effective is about doing the right things,
while being efficient is about doing things right.
6. Aesthetics – a product or service should not only
perform well but also appear attractive. It includes color,
finish, overall look of product or service.
7. Serviceability – includes:
a. How well the customers are treated?
b. How complaints are handled and resolved?
C. How much time you take to resolve problem?
QUALITY MANAGEMENT
The act of overseeing all activities and tasks needed to maintain a
desired level of excellence.
This includes the determination of a quality policy, creating and
implementing quality planning and assurance, and quality control
and quality improvement.
Quality management is a discipline for ensuring that outputs,
benefits, and the processes by which they are delivered, meet
stakeholder requirements and are fit for purpose.
Quality management has four components: quality planning, quality
assurance, quality control and continual improvement. These
include procedures, tools and techniques that are used to ensure
that the outputs and benefits meet customer requirements.
TOTAL QUALITY MANAGEMENT - A core definition of total
quality management (TQM) describes a management approach to
long-term success through customer satisfaction. In a TQM
effort, all members of an organization participate in improving
processes, products, services, and the culture in which they work.
Total quality management (TQM) is a structured approach to
overall organizational management. The focus of the process is to
improve the quality of an organization's outputs, including goods
and services, through continual improvement of internal practices.
TQM implies that everyone associated with the organization is
committed towards continual improvement of the organization
through customer satisfaction.
Dr. WILLIAM EDWARDS DEMING
• referred to as Father of Quality Control
• best known for initiating a transformation in the Japanese
manufacturing sector in the after effects of World War II
• he modified the Shewhart PDSA (plan, do, study, act) to
what is now referred to as the Deming cycle (plan, do,
check, act)
• he said that only the CUSTOMER can define the quality of
any product or service. Quality is a relative term that will
adjust in meaning based on the customer’s needs.
• He stressed the responsibilities of top mgt to be the
leader in changing processes and systems. Leadership
plays an important role in ascertaining the success of
quality management. Top management is in charge.
Deming’s 14 point methodology
1. Constancy of purpose – to accommodate long term
needs instead of short term profitability
2. The new philosophy – espouse the philosophy for one
can no longer allow delays, mistakes, and faulty
workmanship
3. Cease dependence on inspection – remove the need for
mass inspection as a technique to attain quality by
building quality into the product in the first place.
4. End lowest tender contracts – Deming advised
businesses to utilize single-sourcing for long term
 relationships with a few suppliers leading to loyalty and 3. Quality measurement
opportunities for shared improvement 4. Cost of quality
5. Improve every process – Plan, Do, Check, Act – the 5. Quality awareness
Deming cycle 6. Corrective action
6. Institute training on the job – fresh skills are essential to 7. Zero defects planning
sustain changes in materials, methods, product design, 8. Supervisor training
machinery, techniques, and service. 9. Zero defects day
7. Institute leadership – introduce leadership aimed at 10. Goal setting
helping people carry out a better job. The responsibility 11. Error-cause removal
of managers and supervisors must be altered to highlight
12. Recognition
on quality rather than quantity.
13. Quality councils
8. Drive out fear – build a fear-free environment where
14. Do it over again – quality improvement programs never
everyone can contribute and work effectively
ends
9. Break down barriers – with trust, respect, and
appreciation for the needs of others.
Internal barriers – barriers between organizational levels Mistakes are caused by 2 Factors
and departments.
External barriers – between company and its suppliers, • Lack of knowledge – can be eradicated by education and
customers, investors and community. training
Barriers can be removed using better communication, • Lack of attention – must have a personal commitment to
cross functional teams, and changing attitudes and excellence (zero defects)
cultures.

10. Eliminate exhortations – to exhort means to strongly

persuade someone to do something.
Do away with the use of slogans and posters demanding
Dr. JOSEPH MOSES JURAN
zero defects and new level of productivity from the
• Introduce the Quality Trilogies o Quality Planning o
workforce with no commensurate methods provided.
Quality Control o Quality Improvement
11. Eliminate arbitrary numerical targets – numerical quotas
• He defined quality as “FITNESS FOR USE” and
12. Permit pride of workmanship – merit rating developed the idea of Cost of Quality
13. Encourage education – keeps everyone up to date with • He believed that:
latest techniques and methods o quality must be planned o there is no
14. Top management’s commitment shortcut to quality
o make use of problems as sources of
improvement
Deadly diseases that slow down the transformation of 14 points • like Deming, he believes most problems are due to
management, not employees.
• Lack of constancy of purpose • Two types of problems:
• Stress on short-term profit o Constant problems – require the principle
of “breakthrough” o Irregular problems –
require the principle of “control”
PHILIP CROSBY
• ZERO DEFECTS – the heart to Crosby’s philosophy – the
performance standard
Dr. WALTER ANDREW SHEWHART
• Quality is either present or not present at all. There is no • The Grandfather of Quality Control
such thing as varying levels of quality.
• He produced a diagram that we recognize today as
• Quality Management Maturity Grid CONTROL CHART
o Uncertainty • He developed the Shewhart cycle: Plan, Do, Study, Act
o Awakening
o Enlightenment
Wisdom Dr. ARMAND FEIGENBAUM
Certainty • His philosophy is summed up in the 3 steps to quality:
. o Quality Leadership – management stresses on
sound planning rather than reacting to failures
14stepmethodology
o Modern quality technology o Organizational
1. Management commitment commitment
2. Quality improvement team • His points on TQM include:
 o Quality is not what an engineer or marketer
says but it is what the customer speaks of
o Quality and cost are a sum, not differences
o Quality comes, if it is clear, customer oriented,
effective and structured
PROF. KAORU ISHIKAWA
• Father of Quality Circles
• Father of Japanese Quality
• He developed the cause and effect diagram aka Ishikawa
diagram aka fishbone diagram
• He advocates employee contribution as the input to the
This simply means the smaller the loss, the more desirable the
successful implementation of TQM
product.
7 basic tools indispensable (essential) to quality control
o Process Flow Chart
o Check Sheet
o Histogram
o Pareto Chart
o Cause-Effect Diagram
(Ishikawa Diagram)
o Scatter Diagram
o Control Chart
DR. SHINGO SHIGEO
• He emphasized on quality as a way of management
• He influenced the development of participative bottom-
up view of quality which became the trademark of the
Japanese approach to quality management. Some of the
key elements are:
o Quality starts with education and culminates with
education
o The first step to quality is to know customers’
requirements
o The perfect state of quality control happens when
inspection is no longer compulsory
o Take out the root cause, not the symptoms
o Quality control is the duty of all workers and all
divisions
o Do not mistake means with the objectives
o Set quality first and set your sights on long-term
profits
o Market is the entry and way out of quality
o Top management must not demonstrate annoyance
when facts are presented by subordinates
o 99% of problems in a company can be resolved with
easy tools for analysis and problem solving.
GENICHI TAGUCHI
• A Japanese quality expert known for his work in the area
of PRODUCT DESIGN
• Defined quality as “the loss imparted to the society
from the time a product is shipped”
Examples of loss include:
o Failure to reach ideal performance
o Failure to meet customer’s requirements
o Breakdowns
o Harmful side effects caused by products
• Taguchi is known for applying concept called DESIGN OF
EXPERIMENTS to product design. This method is an
engineering approach that focuses on developing robust
design that enables products to perform under varying
conditions. He called it the CONCEPT OF ROBUST
DESIGN.
• The greatest contributor to modern manufacturing
practices
• His teachings and principles have formed the backbone of
efficient engineering practices.
• 3 Concepts
o Just in Time (JIT) – supplying customers what
they want when they want it.
The aim of JIT is to diminish inventories by
producing only what is necessary when it is necessary.
o Single Minute Exchange Dies (SMED) –
a system for speedy changeovers between products.
It’s also known as a QUICK
CHANGEOVER.
The phrase "single minute" does not mean that
all changeovers and startups should take only one minute,
but that they should take less than 10 minutes (in other
words, "single-digit minute").
o Zero Quality Control (ZQC) – focus was
on targeting the root cause of defect whenever a defect
took place, thereby almost abolishing the requirement for
statistical process control.

MASAAKI IMAI
• Ishikawa’s concept of total quality control contains 6
• Founder and President of Kaizen Institute
fundamental principles:
• Kaizen refers to continuous or “on-going”
o Quality first – not short-term profits first o Customer
improvement
orientation – not producer orientation
• Kaizen is acknowledged globally as an essential pillar of an
o The next step is your customer – breaking down the
organization’s long-term competitive strategy.
fence of sectionalism
• Kaizen philosophy believes that people at all levels,
o Using facts and data to make presentations – use of together with the lowermost levels in the organizational
statistical methods hierarchy, can add to improvements. This is possible
o Reverence for humanity as a management because Kaizen asks for simply little improvements.
philosophy, full participatory management
o Cross-functional management
FRAMEWORK FOR QUALITY AND PERFORMANCE • Learning is the most important value to most of the firms
EXCELLENCE • Improving based on what is learned is the next greatest
value
The Deming Philosophy
• Repeat applicants tend to ‘compete’ against
- consists of 4 parts: themselves and their first attempt
• Recognition for high performance does matter – the
➢ Appreciation for a system inherent pride in being seen as exceptional is definitely a
➢ Understanding process variation reward in itself
➢ Theory of knowledge
➢ Psychology
ORGANIZATIONAL EXCELLENCE is defined as the ongoing
efforts to establish an internal framework of standards and
SYSTEMS: processes intended to engage and motivate employees to deliver
products and services that fulfill customer requirements within
• Set of functions or activities that work together to achieve business expectations. It is the achievement by an organization of
organizational goals
consistent superior performance—for example, outputs that
• Deming believe that everyone should gain over long term exceed meeting objectives, needs, or expectations.
• Example: McDonald’s

VARIATION
• Common variation: o Factors that are present as a natural
part of a process
• Special variation o External sources that are not inherent
in the process
• Example: bad batch of hamburger patties
THEORY OF KNOWLEDGE
• Management decisions should be driven by facts, data,
and justifiable theories, not solely by opinions
An ORGANIZATION is a group aggregated and combined under
specific leadership to function as a single entity for a particular
purpose.
EXCELLENCE is a measure of consistently superior performance that
surpasses requirements and expectations without demonstrating
significant flaws or waste.
ORGANIZATIONAL EXCELLENCE continues the progress established
by a foundation such as total quality management, in which all
levels of the organization participate in continual improvement.

PSYCHOLOGY
ORGANIZATIONAL EXCELLENCE MODEL AND
14 points for management
FRAMEWORK

One program highlighting the traits and attributes of organizational

THE CRITERIA FOR PERFORMANCE EXCELLENCE excellence is the Malcolm Baldrige National Quality Award. In the
Baldrige Excellence Framework, the attributes of organizational
• Designed to encourage companies to enhance their excellence include:
competitiveness through an aligned approach to
organizational performance • Leadership
• Improve value to customers • Strategic planning
• Improvement of overall company performance and • Customer and market focus
capabilities • Measurement, analysis and knowledge management
• Organizational and personal learning • Human resources/workforce focus
• Process management
• Business results
But We …

…Don’t need an award A similar protocol, the European Foundation for Quality
…Aren’t interested in an award Management (EFQM) Excellence Model, includes the following
items:
…Don’t have time to apply for an award
• Leadership
…Aren’t anywhere near a role model organization • People
• Strategy
• Partnerships and resources
Not Just Another Award! • Processes, products, and services
• People results
The value of winning…
 • Customer results • Customer
• Society results • Internal business processes
• Business results • Learning and growth

Organizational excellence is incremental. Different tiers or

“maturity levels” should be identified as interim targets for each
The Union of Japanese Scientists and Engineers (JUSE) created the
of the organizational excellence characteristics. By focusing on the
Deming Prize, with specific awards for individuals and for
performance expectations of an accessible maturity level,
organizations and operating divisions. From a definition of
employees and stakeholders will be more inclined to make the
"company-wide quality control" (CWQC), the Deming Prize
necessary changes within their control and capabilities. And as
identified multiple levels and categories of organizational
maturity levels are reached, participants should be recognized for
excellence that include:
their efforts.
• Organization and its management BENEFITS OF PURSUING AND ACHIEVING ORGANIZATIONAL
• Education EXCELLENCE
• Quality information
The pursuit of achieving organizational excellence can strengthen
• Planning
the overall prestige of an organization both internally and
• Analysis
externally. Any additional costs to infrastructure and overhead
• Standardization
have the potential to be repaid with greater returns resulting from
• Control engaged employees, satisfied customers, and more efficient
• Quality assurance operations.
• Results
Three Fundamental Concepts of TQM
These different perspectives suggest that the common traits of • Customer focus: internal and external customers
organizational excellence are consistent across different cultures
and nations. • Continuous improvement: in manufacturing and service
organizations
MANAGING FOR ORGANIZATIONAL EXCELLENCE
• The value of every associate: contributions of every
Another perspective is to view organizational excellence as the individual, selfdirecting work teams, and improvement
successful integration of: teams.
 Technology

 Infrastructure Three Strong Forces

 Personnel Organizational excellence is often the result
of:
 Transitional and Transformational activities.
• Alignment: clear vision, clear definitions of objectives,
translation of key objectives throughout the organization
• Linkage: linking activities across all functions and
departments, reengineering

Successful organizational outcomes require deliberate • Replication: apply similar problem-solving methodology
management and improvement in six key areas: to achieve the same results

• Information: Metrics, measures, and decision support

• Structure: Roles, responsibilities, and accountabilities of Three Critical Processes
each functional area • Quality Planning Process
• People: Total human capital within the organization
• Rewards: Compensation and incentives • Quality Control
• Learning systems: Knowledge and training
• Quality Improvement Process
• Work processes: Interaction and linkage of workflows

Organizational excellence is dependent upon gaining sufficient

commitment to embrace and apply positive changes in the above Quality Awards and Standards
areas. Organizational change management is necessary to
effectively communicate the changes to those affected in order to
minimize uncertainty and obstructions. Collaboration is critical, and
the evidence of organizational excellence can be demonstrated
across the organization with a balanced scorecard that covers the
following perspectives:

• Financial
 • DEMING PRIZE
o One of the highest awards given for TQM
initiatives o Established by JUSE (Japanese
Union of Scientists and
Engineers) in December 1950 o Any company in
the world is allowed to participate and get
recognized
o It is annually awarded
o Categories of Deming Prize o The Deming Prize
for Individuals o The Deming Appreciation Prize
o The Quality Control Award for Operation
Business Units Checklist for Application
o oOutline of the organization
o Organization and management
o TQM promotion o Policy management o
Human resource development
o Information management
o Implementation status of quality control
o Overall defects
o Future plan
• ASQ Certification
Structure and roles of Deming Prize committee
• o ASQ – American Society for
o The committee members consists of TQM experts from industry
and academic field
• Malcolm Baldrige National Quality Award
o America’s highest honor for innovation and
performance excellence in quality
o Named after former US secretary of commerce,
Mr. Malcolm Baldrige
o Started in year 1987
o Issued by US National Institute of Standards and
Technology Baldrige Criteria for Performance
Excellence Framework
Categories:
o Manufacturing
o Service
o Small business
o Education (added 1999)
o Health care (added 1999)
o Non-profit (2005)
Quality
o ASQ certification is a formal recognition by ASQ
that an individual has demonstrated a
proficiency within, and comprehension of, a
specific body of knowledge
o Nearly 150,000 certifications have been issued
to dedicated professionals worldwide
Categories
o Calibration (the setting or correcting of a measuring
device or base level, usually by adjusting it to
match or conform to a dependably known and
unvarying measure.)
o Six sigma (seeks to improve the quality of
process outputs by identifying and removing
the causes of defects)
o Quality auditor o Quality engineer o Quality
technician o Software quality engineer
o Reliability engineer
• The European Quality
Award
Referred to as the
EFQM Excellence Award
o EFQM means European Foundation for
o Quality Management

o Awarded annually
o Centers on EXCELLENCE
o Excellent organizations achieve and
o sustain superior levels of performance
o that meet or exceed the expectations of all their
stakeholders

EFQM Model
2005

• ISO 22000:2005 FOOD SAFETY MANAGEMENT SYSTEM

o A mgt. system designed to enable
organizations to control food safety hazards
along the food chain in order to ensure that
food is safe at the time of consumption.

Features:

o First global food safety standard

o Harmonizes the voluntary international
standards o Employees proven management
system principles o Enables a common
understanding of what a food safety
management system is
o Requires legal compliance checking o
Integrates existing good practice o Internal
and external monitoring