Total Quality in Organization

Learning Outcome:

1.Defined quality and the various quality perspectives

2. Demonstrated an understanding the history and
importance of quality in the organization
3.Discussed quality management frameworks that aim at
continual increase in customer satisfaction
4.Analyzed the importance of achieving quality and
competitive advantage
Modern Importance of Quality
“The first job we have is to turn out quality
merchandise that consumers will buy and keep on
buying. If we produce it efficiently and
economically, we will earn a profit, in which you will
share.”
- William Cooper Procter

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Defining Quality
Perfection Fast delivery
Providing a good, usable product
Consistency
Eliminating waste
Doing it right the first time
Delighting or pleasing customers

Total customer service and satisfaction

Compliance with policies and procedures
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Formal Definitions of Quality
• Transcendent definition: excellence
• Product-based definition: reflect differences in quantities of
product attributes.
• User-based definition: fitness for intended use of the
customers.
• Value-based definition: quality vs. price
• Manufacturing-based definition: conformance to specifications
Specifications-are the targets and tolerances determined by the designers for goods and
services.

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Quality Assurance

...is any planned and systematic activity

directed toward providing customers
with goods and services of appropriate
quality, along with the confidence that
products meet consumers’
requirements.

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• Pioneers for Quality Assurance
- Walter Shewhart
- Harold Dodge
- George Edwards
- Joseph Juran
- W. Edwards Deming
these pioneers not only coined the term
quality assurance, they also developed
many useful techniques for improving
quality and solving quality problems.
 History of Quality Assurance
• Skilled craftsmanship during Middle Ages
• Industrial Revolution: rise of inspection
and separate quality departments(18th
century)
• Early 1900s, Frederick W. Taylor the
“father of scientific management”
separate the planning function from the
execution function.

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History of Quality Assurance
(2 of 3)
• Post-world war II in Japan: evolution of quality
management was promoted by Dr. W. Edwards
Deming and Dr. Joseph Juran.
“kaizen” – means continuous improvement

• US quality crisis around 1980; growth of product

quality awareness in manufacturing industries

Early 20th Century: statistical methods at Bell System

- Statistical Quality Control led by Walter
Shewart. The application of this statistical methods
for controlling quality. It goes beyond inspection to
focus on identifying and eliminating the problems
that cause defects.
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History of Quality Assurance
(3 of 3)
• Emergence of quality management in
service industries, government, health care,
and education.
• Growth and adoption of Six Sigma
- In 1990, Six Sigma is a new tool to quality of improvement. It
is customer-focused and results oriented approach to business
improvement that integrate many traditional quality
improvement tools and techniques.
• Current and future challenge: continue to
apply the principles of quality and
performance excellence. Quality is “a race
without a finish line.”

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 Total Quality
• Principles – foundation of the philosophy
• Practices – activities by which principles
are implemented
• Techniques – tools and approaches to
make practices effective
The concept of total quality is complex and multifaceted. It requires a focus on people and customers at
every level of an organization, cost containment, a systems approach, integration into organizational
strategy, a cross-functional and external-internal scope, and learning and adaptation to continuous change.
It is based on a philosophy of the application of the scientific method and includes systems, methods and
tools. It stresses the values of the dignity of the individual and the power of community action. The way that
an organization is managed must frequently be changed in order to meet the focused requirements of the
philosophy and the systems approach.
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Principles of Total Quality

• Stakeholder focus
• Employee engagement and
teamwork
• Process focus supported by
continuous improvement and
learning

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Customer and Stakeholder Focus

• Customer is principal judge of quality

• Organizations must first understand
customers’ needs and expectations in
order to meet and exceed them
• Organizations must build relationships
with customers

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Key Idea

To meet or exceed customer expectations,

organizations must fully understand all
product and service attributes that
contribute to customer value and lead to
satisfaction and loyalty.

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Employee Engagement and
Teamwork
• Employees know their jobs best and
therefore, how to improve them
• Management must develop the systems and
procedures that foster participation
• Teamwork and partnerships must exist both
horizontally and vertically

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Key Idea
In any organization, the person who
best understands his or her job and
how to improve both the product and
the process is the one performing it.

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Process Focus and Continuous
Improvement
• A process is how work creates value
for customers
• Processes transform inputs (facilities,
materials, capital, equipment, people,
and energy) into outputs (goods and
services)

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Key Idea

A process is a sequence of activities

that is intended to achieve some result

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Continuous Improvement
• Incremental changes as well as
larger, rapid improvements.

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Learning
• The foundation for improvement …
Understanding why changes are successful
through feedback between practices and
results, which leads to new goals and
approaches
• Learning cycle:
– Planning
– Execution of plans
– Assessment of progress
– Revision of plans based on assessment
findings 20
TQ Techniques

• Statistical methods
• Visual aids for problem solving, such as
flowcharts
• Techniques specific to quality assurance
activities, such as control charts,
measurement systems analysis, reliability
models, and so on.
Three Levels of Quality

• Organizational level: meeting external

customer requirements
• Process level: linking external and
internal customer requirements
• Performer/job level: meeting internal
customer requirements

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Quality and Personal Values

• Personal initiative has a positive

impact on business success
• Quality-focused individuals often
exceed customer expectations
• Quality begins with personal
attitudes

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Key Idea

Unless quality is internalized at the

personal level, it will never become
rooted in the culture of an organization.
Thus, quality must begin at a personal
level (and that means you!).

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Competitive Advantage
• Is driven by customer wants and needs
• Makes significant contribution to business
success
• Matches organization’s unique resources with
opportunities
• Is durable and lasting
• Provides basis for further improvement
• Provides direction and motivation
Quality supports each of these characteristics
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Quality and Profitability
Improved quality of Improved quality of
design conformance

Higher perceived value Higher prices Lower manufacturing

and service costs

Increased market share Increased

revenues

Higher profitability

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Assignment :
How would you suggest in handling the following
situations:
1. A guest leave a message that he will be
interviewing job candidates in his suite at noon,
and so needs the room made up immediately, while
he is out of breakfast. The housekeeper sent to the
room reports that some illegal drugs were left in the
bathroom, and she refuses to make up the room.
2. 2. A long-time customer has drunk a bit too much in
your hotel bar. He is staying at the hotel that
evening, he is not driving, and he insists on one
more drink. He says that if the hotel refuses to
serve him, he will take his business elsewhere.
Thank you