TOTAL QUALITY MANAGEMENT
middle class, easier access to consumer
Quality
- Degree of excellence in a product or activity
- “Conformity” and “Specification”
- Refers to product performance, customer
satisfaction, or the way you do your daily
activities
Product quality in its two dimensions
At the center:
- Quality of the idea (prototype or design)
- Quality of the technical realization
(conformance)
Around it:
- Process quality in terms of:
➢ Effectiveness (Quality of the result)
➢ Efficiency (Time/Cost minimization)
Outer circle:
- Embraces all previous dimensions of quality
- Represents the company’s and its product’s
impact
Approaching Quality in History:
Quality at Time of the Industrial Revolution
- Changed dramatically with the advent of
mechanization.
- Between the end of the eighteenth century
and beginning of the nineteenth century,
steam power and the development of
machine tools impacted the first cluster
of industries, mostly raw materials and
semi-finished products including textiles
and iron making.
- Second industrial revolution or mass
production, electrification was
introduced. Implementation of the moving
assembly line by Henry Ford in 1913 and
the conceptualization of scientific
management by Frederick W. Taylor (1911).
From Inspection to Control: Quality after WWII
- Marked by an unprecedented speed of
economic recovery.
- “boom” “miracle” “golden age”
- Demand and productivity were steadily
increasing
- Demographic growth and the rise of the
credit, mass consumption
- Competitive levers were related to how
cheap and how fast products could reach
yet unserved consumers.
The 1960s: Different Markets and Different
Approaches
­ The rapid economic expansion of the early
post-war years largely reflected a process of
“catch-up growth,” that is, reconstruction,
industry reconversion, and war-time
technology deployment. Once these early
opportunities were exhausted, new avenues
in terms of innovation and efficiency needed
to be pursued.
­ However, quality was not seen as a mean
to fuel this growth. As far as the domestic
market is concerned, for many consumer
products, for example, in the rapid
developing high-tech electronics sector,
demand was still exceeding supply.
Companies were operating under limited
competitive pressures, as pre-existing
corporations were merging into larger, more
influential conglomerates.
The Development of the Western Quality
Movement Since the Early 1980s
- The Reagan Era began with the goal of
reaffirming American superiority in
international relations by rolling back the
influence of the Soviet Union and economic
growth, requalifying the US as a leading
high-quality producer against the
Japanese stronghold and the emerging
export-oriented Four Asian Tigers
(Hongkong, Singapore, South Korea, and
Taiwan).
- The American business community was
(re)discovering the work of several
"quality gurus"—Deming, Juran,
Feigenbaum, and Crosby, as well as
Japanese experts like Ishikawa and Imai—
who influenced the Japanese evolution as
quality was making headlines.
- Many consulting firms entered the debate,
each advertising their "unique" approach, as
excitement grew. Europe and Australia have
similar developments. Total quality
 management (TQM) encompasses this
phase's numerous concepts and ideas.
- Middle management was responsible for
quality, while CEOs, who could act more
dramatically, were not. Additionally,
several cultural and context-related
components of the Japanese approach are
difficult to imitate. This necessitated
corporate leaders' participation.
Quality at the Turn of the Millennium: A
Polarization of Perspectives:
­ The most important legacy of the 1990s in
terms of quality management is the lessons
learnt from when it failed: once quality
goes beyond a purely technical domain
(as in QI or QC), there is no universal
recipe for success.
­ At the turn of the millennium, many
believed that quality was a “fallen star”.
Alongside many successful companies
having adopted TQM models/ISO 9000
standards, a significant number of
managers were increasingly
disappointed by the returns of the time
and resources invested to implement them.
­ The lack of success was probably not due
to major flaws in the concept, but rather to
the way it had been introduced and used by
organizations: ISO 9000 as if a certificate
alone could change the way a company was
operating, TQM as some tools and practices
with a one-off application.
The Concept of Stakeholder
- Literally means “carrier” or “holder” of
interest
- Group of people who have an interest in the
performance or success of the organization
- They may contribute to both strategic
management and business tactics
- Employees are one of the primary assets
because of their involvement in business
processes and their sharing of the most
relevant choices
- Suppliers represent another primary asset
of the production system as they
supplement or complement the basic
know-how of the company, providing
factors of production, knowledge, and
innovation
- The state, intended as a set of local and
national government bodies, is not directly
involved in the business, but defines
conditions and areas under which the
production processes may take place
TQM TOOLS
~ STATISTICAL TOOLS FOR QUALITY
MANAGEMENT~
- Statistics provides various techniques and
tools to support quality management and
production processes analysis (e.g., for
monitoring efficiency levels and
improvements obtained).
- These techniques allow to highlight the
most important aspects of the data
available and to reach quantitative
conclusions from (large) sets of data.
- It is worth to use language and methods of
probability to deal with uncertainty.
Descriptive Statistics
- Used to describe data.
Inferential Statistics
- Methods used to get information about a
population from a sample.
The Balanced Scorecard
- Most renowned and most used by industries
of all sections
- Designed by Robert Kaplan and David
Norton in 1992, the BSC was initially
conceived as a tool for measuring
business performance; however, today it
is recognized as a comprehensive system
for the management of a company
- The BSC, in 1997, was already considered
one of the most influential management
tools of the 20th century
- Apple Computer, Chrysler, Mobil NAM & R,
Nike and Pepsi implemented the BSC
- This approached surpassed traditional
evaluations based predominantly on
economic and financial indicators

Quality Function Deployment (QFD)
- A methodology that allows to bring
customer’s wants inside the company
and to make sure that they are taken into
account from the earliest stages of design
- Minimizes the risk that products or services
returning to customers be far from their
needs, because of the steps that the Voice
of the Customer undergoes within the
“circle of corporate communications.”
- Promotes company integration through
the collaboration of all staff under the
company-wide quality control
Professor Yoji Akao (1974) – founding father of
QFD who lead a research committee whose
objective is the development and dissemination of
what will become the methodology known today
Benchmarking
- Benchmarking emerges as a structured
comparison, based on the continuous
research and application of the most
advanced methodologies, aimed at
achieving superior competitive results.
- Benchmarking is identified as the set of
observation and comparison activities
between benchmark and current
practices and/or performances undertaken
by organizations to encourage
improvements.
Customer Satisfaction Analyses
- Customer satisfaction is defined in literature
in many different ways. ISO 9000:2000
describes it as the customer’s opinion of
the degree to which a transaction has
met the customer’s needs and
expectations.
- Customer satisfaction thus represents the
subjective and time-evolving customer
opinion on the performance offered by
suppliers
Failure Mode and Effect Analysis (FMEA)
- Used to identify and prevent various
problems related to systems, designs, and
processes
- The main purpose of the technique is to
increase the level of service offered to
the customer, eliminate or reduce costs
linked to malfunctions, increase safety,
and enhance corporate image through a
detailed and stable quality management and
monitoring system.
- The first application of FMEA dates back to
1949; the instrument was used in the United
States in a military project to assess the
effects of possible failures.
Lean Management
- This means creating a mindset and modus
operandi such that everything, which does
not add value, is eliminated.
- A management philosophy summarized in
“more value for less work,” which finds its
origin in the Toyota production system.
Six Sigma
- The six-sigma methodology presents some
limitations which need to be considered
when choosing this approach to implement
a quality improvement project
The Six Sigma Supporting Structure
➢ Leader - someone at the top of the
company who has the task of
identifying areas for improvement
and articulating them into operational
projects; also, should coordinate and
integrate various projects and
superintend through monthly evaluations
and meetings.
➢ Champion - is a senior executive and
has the role of project development
manager, he/she must provide strategic
lines to improvement groups of his/her
own area and ensure coordination
between groups and the leader
Process Mapping and Indicators
- The process approach is one of the main
innovations introduced by ISO 9001:2000
and further emphasized by ISO 9001:2015.
The change compared to ISO 9001:1994 is
significant and marks the transition from
product control to process management.
- Offers a comprehensive vision of the
activities within the company: it looks at the
final results that the company wants to
achieve from a single process, combining
the individual requirements.
- Pursues an “overall” optimization of
business performances
- A procedure consists of a sequence of
stages, each potentially comprising a series
of activities, which in turn may be broken
down into sequences of actions. The goal of
a procedure is thus to illustrate the
arrangement of the actions that different
actors should carry out.
ISO 9000 Quality Standards
- The first quality standards were
developed in the military sector at the end of
the 1950s.
- The International Organization for
Standardization (ISO) undertook a program
of rationalization, unification, and
harmonization, concluded in 1987 with
publication of the ISO 9000 standards.
- Before analyzing the ISO 9000 standards it
is useful to clarify what the “standard” term
means and to define the actors and the
phases which take part in a standardizing
process. A standard is a document that
includes guidelines or rules concerning
specific activities, developed by a
recognized institution with the aim of
reaching the best possible practice
regarding the execution activities.
The main goals of standards are:
­ Convey information through a clear and
univocal mean between all parts interested;
­ Improve the general economy of
production systems, rationalizing the
operations, unifying processes, and defining
control processes;
­ Preserve human and environmental safety
and security.
During the process of standardization, it has to
be guaranteed:
­ Transparency, clarifying the fundamental
stages which concern the approval process
of a standard project;
­ Democracy, allowing all the interested
actors to take part to the pro-cess;
­ Mutual consent, through the approval of
the standard text by those who contributed
to write it.
ISO 14001
­ ISO 14001 standard has become the main
reference in the field of corporate
environmental management. ISO 14001 is
the standard developed by the International
Organization for Standardization (ISO) to
describe the requirements for a
certifiable Environmental Management
System (EMS) and to encourage its
implementation.
ISO 14001: Environmental Management
Systems
- An EMS is a part of the management
system of a company, and its purpose is to
improve the environmental performance
and the processes of the organization.
- It includes activities, practices, procedures,
and resources to maintain and improve the
environmental policy of a company.
ISO 45001
- ISO 45001:2018 “Occupational health and
safety management systems –
Requirements with guidance for use”
specifies the requirements that an OHSMS
must own to allow an organization to
effectively control its own risks and
opportunities within this scope.
ISO 45001: Certification of the OHSMS
- The certification of the safety management
system is issued by a certification body
following a series of checks carried out at
the premises of the organization to be
certified.
- The meaning of accreditation is, as the word
itself indicates, to make the issued
certificate truthful and validate it by making
it internationally effective.
The certification process is divided into the
following phases (PICS):
- Preliminary audit
- Initial audit
- Certification audit
- Surveillance audit
ISO/IEC 27001
- ISO/IEC 27001: An IntroductionISO/IEC
27001 is a voluntary, international, and
certifiable standard defining the
requirements needed to set up, implement,
and manage an Information Security
Management System – ISMS including
many aspects on:
➢ Logical security – preserve integrity and
confidentiality of digital information
➢ Physical security – solutions whose
purpose is to prevent unauthorized
access to physical location
➢ Organizational security – roles, duties,
and responsibilities for defining
company security policies and
procedures
- An ISMS is part of a global management
system based on risk approach, with the
aim of setting up, implementing, operating,
monitoring, re-examining, maintaining, and
improving information security.
SA 8000
- An international certification standard
aiming to ensure specific aspects of
business management related to
corporate social responsibility (CSR).
- A distinctive element of SA 8000 lies in its
promoting proactive attitudes: those
seeking certification should not simply attain
to verifying compliance with the standards,
but must define plans aimed at
anticipating and thus discouraging those
situations