UNIT 1: EVOLUTION OF QUALITY

Overview
This lesson focuses on the history of Total Quality Management.

Learning Objectives:
At the end of this lesson, you should be able to:
1. discuss what is Total Quality Management (TQM)
2. learn the history of Total Quality Management.
3. explain the importance of Total Quality Management.

Total Quality Management (TQM) refers to management methods used to enhance quality and
productivity in business organizations. TQM is only one of many acronyms used to label management
systems that focus on quality. It is also known as CQI (continuous quality improvement), SQC (statistical
quality control), QFD (quality function deployment), QIDW (quality in daily work), TQC (total quality
control), etc.
It is a comprehensive management approach that works horizontally across an organization, involving
all departments and employees and extending backward and forward to include both suppliers and clients
or customers. Like many of these other systems, TQM provides a framework for implementing effective
quality and productivity initiative that can increase the profitability and competitiveness of organizations.
The history of TQM starts with Elton Mayo’s Hawthorne experiments from 1927 through 1932. These
experiments showed that workers participation in decision making improves productivity. In the 1930s, the
Hawthorne plant of the Western Electric Company studied lighting levels, workday lengths, and rest
period lengths to maximize productivity. During the lighting level studies, researchers found that when the
lights were brighter, worker productivity increased. However, when lighting level was decreased worker
productivity also increased.
This change in behavior from the employees is now called the Hawthorne effect. It basically states
that when workers are involved in studies or decision making, productivity increases. Also, during the
1930s, Walter Shewhart developed control charts which are a statistical method to control processes.
In the 1950s Edward Deming taught statistical methods and Dr Juran taught quality management
techniques to the Japanese. Armand Feigenbaun wrote Total Quality Control. This became the first work
that started many Total Quality Management theories. In 1954 Abraham Maslow created a pyramid of self
actualization needs. In terms of work productivity, the lower levels of needs must be met prior to
employees performing at higher levels.

The needs in order are:

1. Physiological which is to eat, sleep, and have shelter
2. Safety which is to have economic and physical security
3. Belonging which is to be accepted by family and friends
4. Esteem which is to be held in high regard
5. Self actualization which is to achieves ones best

In the 1960s Douglas McGregor formed the Theory X and Theory Y leadership models. A Theory X
leader applies a negative approach to management. They assume most workers really do not like to work
and try to avoid work. A Theory Y leader believes workers want to do a good job. They believe workers
will offer solutions to problems and participate in problem solving events. An involved employee is a
productive employee. In 1968 the Japanese shaped the phrase Total Quality Control. TQC is a company
wide quality control philosophy. This philosophy drove Japan to the world quality leader in the 1970s. For
the most part, Japan remains the quality leader. However, the world has significantly closed the gap.
In the 1980 the U.S. Naval Air Systems coined the TQM phrase. The Navy based most of the
principles on the Japanese Total Quality Control philosophy. Many companies adopted TQM during the
80s. TQM spread like wild fire. Many companies saw significant gains in productivity. However, many
companies started the program and failed miserably because they weren't willing to change.
In the 1990s' TQM evolved. Experts introduce new methods that supported TQM. These include Lean
Manufacturing and Six Sigma. Organizations could now become certified to ISO 9001. The Malcom
Baldridge National Quality Award (MBNQA) was created for the US. MBNQA auditors give this award to
companies who show the most outstanding quality management practices.
In the 2000s, ISO revised ISO 9001 to focus more on business planning, quality management and
continuous improvement. Other certification standards were created including AS9100 for aerospace,
TS16949 for automotive, ISO 14001 for environmental, TL9000 for electronics, and ISO 17025 for
laboratories. These standards all include the ISO 9001.
ISO revised the ISO 9001 standard in 2015 to include Knowledge management. Although Six Sigma
started in the 1990s, it became the prevalent problem solving process used by Quality professionals. The
term Lean Six Sigma was born. A combination of Lean thinking, 5S, and Six Sigma forms the core of
Lean Six Sigma. In addition, experts start using Kaizen, Gemba, and Hoshin Kanri concepts.

Concepts of Total Quality Management

1. structured system for exceeding customer expectations
2. system that empowers employees
3. drives higher profits
4. drives lower costs
5. continuous improvement.
6. management centered approach on improving quality
Benefits of TQM
1. Improves competitive position
2. Increase adaptability to global markets
3. Elevated productivity
4. Superior global image
5. Eliminates defects
6. Reduces waste
7. Reduces quality costs
8. Improves management communication
9. Raises profits
10. Drives customer focus
11. Customer loyalty
12. Reduces design time

History of Total Quality Management (TQM)

1920s  Some of the first seeds of quality management were planted as the principles of scientific
management swept through U.S. industry.
 Businesses clearly separated the processes of planning and carrying out the plan, and
union opposition arose as workers were deprived of a voice in the conditions and
functions of their work.
 The Hawthorne experiments in the late 1920s showed how worker productivity could be
impacted by participation.
1930s  Walter Shewhart developed the methods for statistical analysis and control of quality.
1950s  W. Edwards Deming taught methods for statistical analysis and control of quality to
Japanese engineers and executives. This can be considered the origin of TQM.
 Joseph M. Juran taught the concepts of controlling quality and managerial breakthrough.
 Armand V. Feigenbaum’s book Total Quality Control, a forerunner for the present
understanding of TQM, was published.
 Philip B. Crosby’s promotion of zero defects paved the way for quality improvement in
many companies.
1968  The Japanese named their approach to total quality "companywide quality control." It is
around this time that the term quality management systems arises.
 Kaoru Ishikawa’s synthesis of the philosophy contributed to Japan’s ascendancy as a
quality leader.
Today  TQM is the name for the philosophy of a broad and systemic approach to managing
organizational quality.
 Quality standards such as the ISO 9000 series and quality award programs such as the
Deming Prize and the Malcolm Baldrige National Quality Award specify principles and
processes that comprise TQM.
 TQM as a term to describe an organization's quality policy and procedure has fallen out of
favor as international standards for quality management have been developed. Please
see our series of pages on quality management systems for more information.
Table 1 History of TQM from ASQ (Learn About Quality)