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