UNDERSTANDING broad objectives, and activities that must be completed

QUALITY to accomplish the broad objectives.

Customer Focus: External customers define the quality
Quality
of the product or service delivered. Internal customers
➢ A degree of Excellence
help define the quality of the people, processes, and
➢ Fitness for purpose
environments associated with the products or services.
➢ Conformance to requirements
Obsession with Quality: All personnel at all levels
➢ A dynamic state associated with products,
approach all aspects of the job from the perspective of
services, people, processes and environment
“How can I do this better?”
that meets or exceeds expectations and helps
Scientific Approach: Hard data are used in establishing
produce superior value.
benchmarks, monitoring performance, and making
Dimensions of Quality
improvements.
➢ Performance
A performance characteristic describes a Long Term Commitment: Whole new way of doing
product's essential function. business that requires an entirely new corporate culture.
➢ Features Teamwork: Energy should be focused on improving
Features are a secondary aspect of performance. quality and in turn external competitiveness.
They're "the bells and whistles" of products and Continual Process Improvement: To continually
services. They're the ones who add extra improve products and services it is necessary to
functionality to their essential functions. continually improve systems.
➢ Conformance Education and Training: People who know how to work
the degree to which a product conforms to its hard also learn how to work smart
specification. Freedom through Control: Controls such as scientific
➢ Reliability methodologies lead to freedom by empowering
ability of a product or service to perform as
employees to solve problems within their scope of
expected over time.
control.
➢ Durability
is the measurement of product life. Unity of Purpose: It means that all employees work
➢ Service toward a common goal.
Serviceability is the ease at which a user can Employee Involvement and Empowerment:
repair a faulty product or get it fixed. Structuring work that allows employees to make
➢ Response decisions concerning the improvement of work
➢ Aesthetics processes within well specified parameters.
Aesthetics refers to the appearance of a product Peak performance as a top priority
or service. Productivity versus quality
➢ Reputation Traditional View
Quality and Process Productivity and Quality are always in conflict. You
Process – the transformation of a set of inputs into cannot have both
outputs that satisfy customer needs and expectations in Total Quality View
the form of products, information and services. Lasting productivity gains are made only as a result of
Quality Assurance – Making sure that the product or quality improvements.
service represents the output from an effective system to Traditional View Total Quality
ensure capability and control. It is the prevention of View
quality problems through planned and systematic How Quality Meeting customer Satisfying
activities. is defined specifications customer needs
Quality Control – the activities and techniques and exceeding
employed to achieve and maintain the quality of a customer
product , process, or service. It is concerned with expectations
finding and eliminating causes of quality problems How Quality is Establishing an Establishing
so that the requirements of the customer are measured acceptable level high-
continually met. of performance
Total Quality nonconformance benchmarks for
It is an approach to doing business that attempts to and measuring customer
against that satisfaction and
maximize the competitiveness of an organization
benchmark then continually
through continual improvement of the quality of its satisfaction and improving
products, services, people, processes, and environment. then continually performance.
How it should be Done? improving
Strategically based: Comprehensive strategic plan that performance.
contains at least the following elements: vision, mission,
 How Quality Quality is Quality is ➢ Commitment
is Achieved inspected into the determined by ➢ Communication
product. product and
process design LEADERSHIP IN TOTAL QUALITY
and achieved by
Management Responsibility in Total
effective control
techniques. Quality
How Quality Quality is Quality is
is Achieved inspected into the determined by The implementation of the quality involves
product. product and Everyone, but only the management can provide
process design the leadership needed to achieve results.
and achieved by
effective control Management must also encourage employees
techniques. to think for themselves. In TQM, the manager’s
Attitude Defects are an Defects are to role is no longer to make the final decision, but
towards expected part of be prevented to ensure that the team’s decision is in line e
defects the product. using effective with the quality objectives of the organization.
Measuring control systems
defects per and should be
The management must be informed of the topic
hundred is an measured in
Quality Improvement.
acceptable defects per
standard. million
Quality as a Quality is a Quality should The resources that the employees need to use
function separate function. be fully TQM tools and techniques must be provided.
integrated
throughout the Managers must find time to celebrate the
organization. success of their organizations quality efforts by
Responsibility Employees are At least 85% of Participating in award and recognition programs.
for Quality blamed for poor the quality
Quality. problems are Managers must be visibly and actively engaged
the in the Quality effort by serving on teams,
management advising teams, and teaching seminars.
fault.
Supplier Supplier Supplier
Managers must also listen to the internal and
Relationships relationships are relationship are
External customers and suppliers through visits,
short term and long term and
cost driven. quality oriented. FGD and surveys.

Models and Framework for Total Quality Effective Leadership according to

Management The 4Ps model of TQM

William Edwards Deming 1. Planning

➢ Develop a vision needed for constancy
• Focused on the management’s role in total
quality management. of purpose and for long term success.
• The management is responsible for 94% of the
➢ Develop, deploy, and update policy and
quality problems
strategy.
Joseph Juran
➢ Align organizational structure to support
• Emphasized the universal principles of quality
delivery of policy and strategy.
that can be applied to organizations.
2. Performance
Philip Crosby
➢ Identify critical measures of
• Promoted the concept of zero defects and the
performance
four (4) Absolutes of Quality.
➢ Develop measures to indicate levels of
current performance.
4P’s of TQM
➢ Set goals and measure progress
➢ Planning
towards their achievement.
➢ Performance
➢ Provide feedback to people at all levels
➢ Processes
regarding their performance against
➢ People
agreed goals
3C’s of TQM
3. Processes
➢ Culture
 ➢ Ensure that a system for managing
processes is developed and
implemented
➢ Ensure, through personal involvement,
that a management system is developed
implemented, and continuously
improved.
4. People
➢ Train managers and team leaders at all
levels in leadership skills and problem
solving.
➢ Stimulate empowerment and teamwork
to encourage creativity and innovation.
➢ Encourage, support, and act on results
of training, education, and learning
activities.
5. Customer
➢ Be involved with customers and other
stakeholders.
➢ Ensure customer needs are understood
and responded to.
➢ Establish and participate in partnership.
6. Commitment
➢ Be personally and actively involved in
quality and improvement activities.
➢ Review and improve effectiveness of
own Leadership.
7. Culture
➢ Develop the values and ethics to
support the creation of a total quality
culture across the entire supply chain
➢ Implement the values and ethics
through actions and behaviors
➢ Ensure creativity, innovation, and
learning
➢ Activities are developed and
implemented.
8. Communications
➢ Stimulate and encourage
communication and
➢ collaborations.
➢ Personally communicate the vision,
mission, Policies and strategies
➢ Be accessible and actively listen.
Quality in the Organization
Quality Statements
➢ Vision Statements- In the future
➢ Mission Statements- Function of
organization
➢ Quality Policy- serves a guide, how
should provide the product
Characteristics of a Quality Policy
Statement
➢ Meets the needs of the internal and
external
➢ Customers
➢ Equals or exceeds the competition
➢ Continually improves the quality
➢ Includes business and production
practices
➢ Utilizes the entire personnel.
Core Values
➢ Create an atmosphere of common purpose and
trust.
➢ Clarify goals and the ways that those goals can
be trust.
➢ Set Priorities and sort out information overload
Core Values of TQM
1. Customer Driven Quality- Quality is
determined by the customer. Value,
satisfaction, and preference may all be
influence by many factors throughout the
customers purchase, ownership and service
experience.
2. Leadership- Leader in the business
organization should create customer
awareness, set a clear and visible quality
values, and high expectation.
3. Continuous Improvement- This term
includes both incremental and
“breakthrough” improvements.
4. Employee Participation and Development-
Continuous improvement of organizational
performance depends on the abilities, skills,
motivation of the employees.
5. Fast Response- Faster response time is
often critical to business organizations.
6. Design Quality and Prevention- In general,
the cost of preventing problems at the
design stage are much lower than correcting
problems on products that have already
reached the customers. Design quality
includes the creation of robust or error-
tolerant processes and product
7. Long-Range Outlook- Attaining quality and
market leadership requires a business
organization to have a strong future
orientation and a willingness to make, long-
term commitments to all stakeholders of the
business.
 8. Management by fact- Facts and data are
needed for quality improvement and quality
assessment. The data obtained, and the
analyses that would be done, will also help
improve performance and determined
performance indicators.
9. Partnership Development- Business
organization should establish internal and
external partnerships to better accomplish
their over all goals. Internal partnership
might include those that promote labor
management cooperation. External
partnerships include those with customer,
suppliers and education organization.
10. Corporate Responsibility and Citizenship-
Corporate responsibility refers to the
exercise of the organizations business
ethics and efforts made for the protection of
public health, public safety, and the
environment. Health, safety, and
environmental consideration must be
considered in the business operations, as
well as the life cycle and products and
services.
Quality and Culture
Culture – the everyday manifestation of an
Organization’s underlying values and traditions.
Quality Culture – An organizational value system that
Results in an environment that is conducive to the
Establishment and continual improvement of quality.
Traditional vs.
Quality Culture
Operating Philosophy
Traditional Culture
Primary focus is on return on investment
And short term profits.
Quality Culture
Primary focus is on customer satisfaction
Management Approach
Managers think and employees do what
They’re told.
Managers are seen as coaches of the team.
Attitude towards customers
More importance is placed on internal
Needs than customer needs.
More customer focused; customer
Satisfaction is the highest priority.
Problem solving approach
When problem occur, decision makers and
employees tend to spend energy
deflecting or assigning blame.
When problem occur, focus is on identifying
and isolating the root cause so that the
problem, and not just its symptoms, can be
eliminated.
Supplier Relationship
Pressure is exerted on the supplier to bring
down prices and speed up delivery.
Suppliers are viewed as partners; suppliers
work cooperatively with the business to
continually improve the relationship and
performance of both.
Performance-improvement approached
Performance-improvement is erratic and are
often triggered by problems.
Continual improvement of the processes,
people, product, working environment
and performance.
Laying the foundation for a Quality Culture
➢ Understand- The executive managers must
have an understanding of the quality culture
concept and their role in establishing and
maintaining that culture.
➢ Assess- A comprehensive assessment of the
existing corporate culture as it relates to quality
must be completed.
➢ Plan- Based on the results of the survey, the
organization must develop a comprehensive
plan for establishing quality culture.
➢ Expect- It is important that the management
ensures that all personnel know that quality-
positive attitudes and behaviors are expected.
➢ Model- The managers must consistently be
positive role models of the quality-related
attitudes and behaviors expected of personnel.
Employees are more likely to follow the behavior
of management than their words
➢ Orient- New employee orientations should have
a comprehensive quality component.
➢ Mentor- Many organizations use mentors to help
in the development of employees. Usually,
mentors provide technically oriented assistance,
such as helping new personnel learn new skills,
 but organizations can also help their new nature, and which are long- term? Which can be
personal develop quality-positive attitudes and made immediately and which will require longer
behaviors time? Take any corrective action that can be
➢ Train- In training,it is important to help personnel done immediately, and lay out a plan for
understand not just the ‘’how’’ of quality, but also completing any that are long-term in nature.
‘’why’’. Meet with customers and let them know what is
➢ Reinforce and maintain quality- A recognition going to be done and when. Make sure that
and rewards system must include quality as a changes are made to the extent possible, in the
criterion. It should be a factor in all decisions same order of priority as that dictated by
about raises, and recognition awards. customer needs
PURPOSE OF FEEDBACK
THE CUSTOMER’S ROLE IN TQ • Discover customer dissatisfaction
TYPES OF CUSTOMERS • Discover relative priorities of quality
External Customers – they exist outside the business • Compare performance with the competition
organization and buys products and services. • Identify customers needs
Internal Customers – they are who work in the • Determine opportunities for improvement
organization, who receives a product or service and in The Importance of Customer Feedback
turn provide or service. Techniques to Obtain Feedback
• Comment cards
Customer’s Perceptions of Quality • Surveys
➢ Performance
• Focus groups
➢ Features
• Toll-free telephone numbers
➢ Service
• Customer visits
➢ Warranty
USING CUSTOMER COMPLAINTS
➢ Price
➢ Reputation • Investigate customer’s experiences by actively
soliciting feedback, both positive and negative,
The Importance of Customer Feedback
then acting on it promptly
Six Step Strategy for identifying Customer needs
• Develop procedures for complaint regulation that
• Speculate about the results- Before gathering
includes empowerment of frontline personnel.
information about customer needs, spend some
ELEMENTS OF CUSTOMER SERVICE
time speculating about what might be learned.
The purpose of this step is to help • Organization
representatives of the organization determine if • Customer
they are in touch with customer needs. • Communication
• Plan how to gather the information- Before • Frontline people
implementing the entire information-gathering • Leadership
plan, conduct a smaller pilot study involving just CUSTOMER SATISFACTION
a few customers. This will identify problems with This is a measure of the degree that a product
the information-gathering methodology that or service meets customers expectations.
should be corrected before you proceed on a
larger scale.
• Gather the information- After the methodology
has been appropriately refined, gather
information in a timely manner.
• Analyze the results- Results should be analyzed
carefully and objectively.
• Check the validity of your conclusions-
Customers can be a valuable source of help.
Select several customers and share the
conclusions with them. Do they agree with the
conclusions? Share the conclusions with other
people in the organization and get their
feedback. Adjust your conclusions as needed
based on this external and internal feedback
• Take action as indicated- Based on the
conclusions, what changes need to be made?
Which of these changes are short-term in
 Potential partnership participants
➢ Employees
➢ Suppliers
➢ Customers
➢ Competitors
Type of Sourcing
Sole- one supplier
Multiple- two or more supplier
Single- to select one supplier, even several supplier are
Customer Loyalty available.
Phases in building customer loyalty Just in Time Management
• Business Performance Transport- unnecessary movement of people.
• Global Perceptions Inventory- raw material, work on progress
• Loyalty Motion- unnecessary movement of people and machine
• Financial Outcomes Overprocessing- beyond the standard
Types of loyal customers Over production- involve in producing sooner
Butterflies Defects- repetition or correction
True Friends
Strangers The Kanban System
Barnacles • Visual sign to trigger action
INTEGRATING TQM IN POLICY AND Push System
• Traditional company
STRATEGY
• Request material ahead of time.
THOMAS EDISON
Pull System
• He is most famous for the invention of the
• Part are pulled to the production process when
lightbulb.
they’re needed.
• “Vision without execution is Hallucination”
The Development of Policy
PERFORMANCE MEASUREMENT
• Strategic Management- Systematic analysis of
factors. FRAMEWORKS
• Core Competencies- Something that Performance Measurement
organization does. Reasons For Performance Management
• Strategic Planning • Customer Requirements
• Strategy Execution • Objectives
• Standards
• Performance level
• Quality Problems
• Feedback
Performance Measurement
Areas of Progress
• Effectiveness– the percentage of actual output
over the expected output.
• Efficiency– this is concerned with the
percentage of resources actually used over the
resources that were planned to be used.
• Productivity– these measures are designed to
relate the process outputs to its inputs.
SWOT Analysis- Conduct work analysis, Strength • Quality -these measures should also include
and Weaknesses(internal) Opportunity and Threat customer satisfaction.
(external)
• Impact and Value added-these measures
Strength- Any characteristics that gives advantages.
should lead to key performance indicators for
Weaknesses- Disadvantages.
the business or organization, including
Opportunity- Potential avenues to and gate
monitoring improvement over time.
sustainable.
Performance Measurement
Threats- This is phenomena has potential to put the
Step in performance measurement frame work
organization to competitive disadvantages.
• Establish key goals
• Establish metrics
Partnership and Supplier Collboration
• Understand performance • Repairs and servicing
• Initiate improvement • Warranty claims
Costs of Quality • Complaints
Prevention costs • returns
• Product or service requirements
• Quality planning ISO 9000
• Quality Assurance ISO – this is an independent, non governmental
• Inspection Equipment international organization with a membership of 161
• Training national standards bodies. Through its member, it brings
COST OF QUALITY together experts to share knowledge and develop
Prevention Cost – these are costs associated voluntary, consensus-based, market relevant information
with the design, implementation, and standards that support innovation.. It began 1946 when
maintenance of the quality management delegates from 25 countries met in London and decided
system. to create a new international organization to facilitate the
Product or Service requirements – these are international coordination and unification of industrial
specification set for incoming materials, standards.
processes, and finished
products/services.

Quality Planning – these are the costs of the

creation of plans for quality, reliability,
operational, production and inspection.
Quality Assurance – these are the costs of the
creation and maintenance of the quality system.
Inspection equipment – these are the costs of
the design,development and or purchase of
equipment for use in inspection work.
Training – these are the costs of development,
preparation, and maintenance of quality
programs for operators, supervisors, staff and
managers.
2. Appraisal Costs – these costs are
associated with the supplier’s and customer’s
evaluation of purchased materials, processes,
products, and services to ensure that they
conform to specification.
• Verification
• Quality Audits QUALITY MANAGEMENT SYSTEM
• Vendor rating
It is composed of all the organization’s policies,
3. Failure Costs procedures, plans, resources, processes, and
A. Internal failure costs – these are incurred designation of responsibility and authority, all
when the results of work fail to reach designed deliberately aimed at achieving product or service
quality standards and are detected before they equality levels consistent with customer satisfaction and
are transferred to the customer. the organization’s objectives.

• Waste 1. Quality Policy – the statement describes

• Scrap how the organization approaches quality.
• Rework or rectification
• Downgrading 2. Quality manual – this must address each
• Failure analysis clause of the 1900 standard.

B. External failure costs – these are costs for 3. Quality objectives – these are goals related
products that fail to reach design quality to quality and must be in harmony with the
standards, but were not detected until after quality policy.
transfer to the customer. They include:
 4. Quality procedures – these describes step
by step what the company does to meet the
quality policy.
• Forms and records – these provide of activities
for the firm and for the auditors.
SPECIFIC APPLICATIONS OF ISO
• ISO 14000 – ENVIRONMENTAL
MANAGEMENT
• ISO 45001 – OCCUPATIONAL
HEALTH AND SAFETY
• ISO 27001 – INFORMATION
SECURITY
• ISO 26000 – SOCIAL
RESPONSIBILITY
• ISO 50001 – ENERGY MANAGEMENT
• ISO 22000 – FOOD SAFETY
MANAGEMENT
• ISO 20121 – SUSTAINABLE EVENTS
• ISO 13485 – MEDICAL DEVICES
• ISO 31000 – RISK MANAGEMENT
• ISO 37001 – ANTI – BRIBERY
MANAGEMENT SYSTEM
PHILIPPINE QUALITY AWARD (PQA)
It is a national award program that recognizes
achievements of public and private sectors in
their journey towards performance excellence. It
is a program created for the National Action
Agenda for Productivity (NAAP), the country’s
integrated approach to improve productivity
during the term of former president Fidel V.
Ramos. It was institutionalized through the
signing of republic act 9013, also known as
Philippine Quality Award Act.
BENEFITS OF A FEEDBACK REPORT
• Gain an outsider’s perspective of the
organization’s strengths and
opportunities for improvement.
• Guide the quality and productivity
improvement efforts.
• Achieve greater success and increase
employee involvement.
• Greater success and increase
organization’s capability, flexibility to
cope with rapid change while keeping
the focused on customer satisfaction,
employee retention, and employee
involvement.