You are on page 1of 27

FM-AA-CIA-15 Rev.

0 10-July-2020

Study Guide in CBMEC 101 – Operations Management (TQM) Module No. 1

STUDY GUIDE FOR MODULE NO. ___

INTRODUCTION TO TOTAL QUALITY MANAGEMENT


MODULE OVERVIEW

What is quality? Why is quality important? Quality is not a new concept in modern business. The
approaches in quality have long been used by well effective leaders and managers. The most
notable feature is the level of mutual trust that is needed by both managers and staff to create a
culture in which an effective quality management program can be successful. Quality is everyone’s
task, and not limited to the inspection department. People are anticipated to seriously weigh up
their jobs and make the first move to improve their part of the process which then would result
higher quality. High quality goods and services can provide an organization with a competitive
edge. A reputation for high quality generates satisfied and loyal customers who reward the
organization with continued patronage and favorable word-of-mouth advertising. In contrast, the
failure to adequately address quality can be devastating.

MODULE LEARNING OBJECTIVES

At the end of this Module, you should be able to:

1. Define quality and TQM


2. Identify the primary elements, core concepts and benefits of TQM
3. Distinguish between traditional management and TQM
4. Compare and contrast reengineering and TQM

LEARNING CONTENTS (DEFINING QUALITY)

What is Quality?

Quality can be a confusing idea, partly because people view quality subjectively and in
relation to differing criteria based on their individual roles in the production-marketing value chain.
In addition, the meaning of quality continues to evolve as the quality profession grows and matures.
Quality is a lot more than the nonexistence of defects which allow companies to meet customer
expectations. Quality needs-controlled process improvement, allowing companies to exceed
customer’s expectations. Quality can only be attained by the nonstop improvement of all systems
and processes in the organization, not simply the production of products and services but also the
design, development, service, purchasing, administration and indeed, all aspects of the transaction
with the customer.

Different people understand quality in a different manner. Hardly anyone can describe quality in
quantifiable terms that can be operationalized. Thus, it is important to understand the various
perspective from which quality is viewed to fully appreciate the role it plays in the many parts of a
business organization.

Approaches to Quality Definition

PANGASINAN STATE UNIVERSITY 1


FM-AA-CIA-15 Rev. 0 10-July-2020

Study Guide in CBMEC 101 – Operations Management (TQM) Module No. 1

1. Transcendent Approach – Most people would agree that the Mona Lisa or Michaelangelo’s David
were works of art which represent quality because people travel from around the world to view
them. But can they define it? Those who hold the transcendental view would say “I can’t define it,
but I know it when I witness it”. Quality is difficult to define or to operationalize. It thus becomes
elusive when using the approach as basis for competitive advantage. Moreover, the functions of
design, production and service may find it difficult to use the definition as a basis for quality
management.

2. Product Based - Quality is viewed as a quantifiable or measurable characteristic or attribute. For


example, durability or reliability can be measured and the engineer can design to that benchmark.
Quality is determined objectively. Although this approach has many benefits, it has limitation as
well. Where quality is based on individual taste or preference, the benchmark for measurement may
be misleading.

3. It is based on idea that quality is an individual matter and products that best satisfy their
preferences are those with the highest quality. This is rational approach but leads to two problems;
Consumer preference vary widely, and it is difficult to aggregate these preferences into products
with wide appeal. This leads to the choice between a niche strategy or a market aggregation
approach which tries to identify those product attributes that meet the needs of the largest number
of consumers. Another problem concerns whether quality and customer satisfaction are the same.
Probably not.

4. Manufacturing - Manufacturing-based definitions are concerned primarily with engineering and


manufacturing practices and use the universal definition of “conformance to requirements”.
Requirements or specifications are established by design and any deviation implies a reduction in
quality. The concept applies to services as well as product. Excellence in quality is not necessarily in
the eye of the beholder but rather in the standards set by the organization.

5. It is defined in term of costs and prices as well as number of other attributes. Thus, the
consumer’s purchased decision is based on quality at an acceptable price. This approach is reflected
in the popular Consumer Reports magazine which ranks products and services based on two criteria:
Quality and Value. The highest quality is not usually the best value. That designation is assigned to
the “best- buy” product or service.

Quality Types

In general, quality is meeting and exceeding customer expectations at a price that he is willing to
pay to possess the product or service. There are three types of quality.

1. Quality of Design – is all about set characteristics that the product or service must minimally have
to satisfy the requirements of the customer based on market research. Thus, the product or service
must be designed in such a way so as to meet at least minimally the needs of the customer at a
given cost. However, the design must be simple and also less expensive so as to meet the
customers’ product or service expectations. Quality of design is influenced by many factors, such as
product type, cost, profit policy, demand of the product, availability of parts and materials, and
product reliability.

PANGASINAN STATE UNIVERSITY 2


FM-AA-CIA-15 Rev. 0 10-July-2020

Study Guide in CBMEC 101 – Operations Management (TQM) Module No. 1

2. Quality of conformance – is basically meeting the standards or user-based characteristics defined


in the design phase after the product is manufactured or while the service is delivered. It refers to
the extent in which the firm and its suppliers are able to manufacture products with expected level
of reliability and uniformity at a specified cost with quality requirements based on the study made
on quality design. This phase is also concerned about quality control starting from raw materials to
the finished product.

3. Quality of Performance – is how sound the product functions or service performs when put to use.
It measures the degree to which the product or service pleases the customer from the angle of
quality of design together with the quality of conformance. Meeting customer expectation is the
focus of quality of performance. Customer survey is carried out to discover customer’s perception
about service rendered. If product or service does not meet to customer expectation, then
modifications are considered necessary in the design or conformance phase.

Quality Levels

Quality focused organization must evaluate at three levels namely organization, process, and
individual. Quality systems and standards must be defined at each level and then manage quality
through improvement efforts. The organization, process, and individual are co-dependent and are
linked together in a total system that eventually decides the quality of products and services of an
organization.

1. Organizational level

The organizational level quality requirements revolve around its customers’ quality requirements. A
customer is anyone who receives one or more of the organization’s products or services who could
be an internal or external one. The following issues may help define quality at this level:

1. Products or services that meet customer expectations


2. Products or services that do not meet customer expectations
3. Products or services that are needed by the customers, but they do not receive.
4. Products or services that are not needed by the customers, but they do not receive.

The resolution of these issues will include productivity and cost requirements and those that are
traditionally linked to quality. Timeliness, accessibility, and value for money are quality features for a
customer.

Most quality focused organizations, aside from data gathering use benchmarking to compare its
functions with the same functions as other organizations. Benchmarking should be a continuing
concern to make certain that the organization employs ongoing improvement to compete and
deliver demanded customer requirements.

2. Process level

At the process level, units of the organizations are categorized into functions or department like
marketing, operations, finance, human resource and so on. Most processes are cross-functional so

PANGASINAN STATE UNIVERSITY 3


FM-AA-CIA-15 Rev. 0 10-July-2020

Study Guide in CBMEC 101 – Operations Management (TQM) Module No. 1

managers can optimize the activities of his department and sub-optimize the activities of the entire
organization. The following issues may help define quality at this level:

1. Products and services that are most important to external customers.


2. Processes that produce those products or services
3. The key inputs to process
4. Processes that have the most major effect on the organization’s customer drive
performance standards
5. The internal customers and their needs.

Defining quality at the process level starts with determining the end-customer requirements for the
process. End-customer requirements should then be translated into specific measures that should
drive one or more internal measures for the overall process. These measures must be brought to the
different sub process and sub sub-process. The outcome is a set of meters in additions to the
specific standards they produce placed at key stages of the process that will serve as the basis for
monitoring each step’s contribution to the process quality. The meters and standards will also be
used for troubleshooting the system in case customer requirements are not met.

3. Performer/Job/Task Design Level

It is vital to generate an individual quality in the context of organization and process quality despite
quality being broken at the individual level.
Individuals are one of the vital components of the human performance system. At the micro level
they serve as a reflection of the process and the system being used by the organization. Each
individual under the human performance system accepts inputs, generate outputs and then adjust
his performance from the feedbacks obtain.

Developing standards to measure each individual key output is a necessity to define individual
quality. The standard created from organization and process levels should be the basis for these
standards to be developed. Productivity and cost are the requirements for a customer-driven
quality. With these requirements the areas to be measured to qualify individual standard would
include accuracy, completeness, innovativeness, reliability, ease of use, timeliness, volume, rate, cost,
and flexibility.

Quality Paradigms

1. Custom-craft paradigm
2. Mass production and sorting paradigm
3. Statistical quality control paradigm
4. Total quality management paradigm
5. Techno-craft paradigm

Cost of Quality

Cost of quality is a method that permits an organization to decide on the level to which its resources
are used for activities that avoid poor quality, that assess the quality of the organization’s products

PANGASINAN STATE UNIVERSITY 4


FM-AA-CIA-15 Rev. 0 10-July-2020

Study Guide in CBMEC 101 – Operations Management (TQM) Module No. 1

or services, and that result from internal and external failures. An organization is able to determine
the potential savings to be gained by implementing process improvements having such information.

Quality-related activities that incur cost may be divided into prevention cost, appraisal cost, and
internal and external failure cost.

1. Prevention Cost – These are incurred to prevent or avoid failure problems. Prevention activities
lead to reduce of failure and appraisal cost. These costs are associated with the design,
implementation, and maintenance of the quality management system.

2. Appraisal Costs – These costs are associated with measuring and monitoring activities related to
quality standards and performance requirements. These costs take place from spotting defects
rather than prevention. These costs are associated with the suppliers’ and customers’ evaluation of
purchased materials, processes, products, and services to ensure that they conform to specifications.

3. Internal Failure Cost – These costs are acquired to treat defects revealed earlier when the product
or service is delivered to the customer. These costs happen when the results of work fail to attain
design quality standards and are noticed before they are transferred to the customer.

4. External Failure Cost – These are costs obtained to treat defects exposed by customers. These
costs occur when products or services that fail to attain design quality standards are not discovered
until after transfer to the customer.

LEARNING CONTENTS (DEFINING TOTAL QUALITY MANAGEMENT)

What is TQM

Total Quality Management (TQM) is an all-inclusive and well-thought-out means to


organizational management that searches to advance the quality of processes, products, services,
and culture through continuing minor changes in reply to constant feedback. TQM consist of
continuous process enhancement activities concerning managers and workers alike in an
organization in a completely integrated effort toward improving performance at all level. This
enhanced performance is aimed at satisfying such cross-functional goals as quality, cost, schedule,
mission, need and suitability. TQM combines basic management techniques, current improvement
efforts and technical tools in a disciplined approach focused on continuous improvement.

TQM combines basic management techniques, current improvement efforts and technical
tools in a disciplined approach focused on continuous process improvement. The activities are
eventually focused on improved customer satisfaction.

Essential to the TQM approach is the transformation in management philosophy regarding


the “responsibility for quality”. In TQM, the responsibility for quality is given to everyone, each and
every employee, from top management to the lowest position in the organization.

Quality is a necessary parameter which helps organizations outshine their competitors and
survive the fierce competition.

PANGASINAN STATE UNIVERSITY 5


FM-AA-CIA-15 Rev. 0 10-July-2020

Study Guide in CBMEC 101 – Operations Management (TQM) Module No. 1

The Primary elements of TQM

Quality is a necessary parameter which helps organizations outshine their competitors and survive
fierce competition.

The achievement of TQM depends on the following eight elements which are further classified into
four groups.

Foundation

The entire process of total quality management is built on a strong foundation of ethics, integrity
and trust. TQM involves every employee irrespective of his designation and level in the hierarchy.

1. Ethics – Ethics is a combination of written and unwritten codes of principles that govern decisions
and actions within a company.
2. Integrity – Integrity is the consistency of actions, values, methods, measures, principles,
expectations, and outcomes at workplace.
3. Trust – Trust is one of the most important factors necessary for implementation of TQM because
it builds a cooperative environment.

Building Bricks

1. Leadership – Leadership provides a direction to the entire process of TQM.


2. Teamwork
3. Training – Employees need to be trained on TQM to become highly productive.

Building Mortar

1. Communication – Communication is the vital link between all the TQM elements and must be
prevalent in an organization in order for TQM to work the way it should.

Types of Communication
1. Downward communication
2. Upward communication
3. Sideways/lateral communication

Roof

1. Recognition – Recognition is the most important factor which acts as a catalyst and drives
employees to work hard as a team and deliver their best.

Core Concepts of TQM

1. Customer Satisfaction
2. Internal customer Satisfaction
3. All work is process

PANGASINAN STATE UNIVERSITY 6


FM-AA-CIA-15 Rev. 0 10-July-2020

Study Guide in CBMEC 101 – Operations Management (TQM) Module No. 1

4. Measurement
5. Synergy in teamwork
6. People make quality
7. Continuous improvement cycle
8. Prevention

Benefits of TQM

1. Creates a good corporate culture


2. Better reviews from customer
3. Better performance from employees

LEARNING CONTENTS (DISTINGUISHING BETWEEN TRADITIONAL MANAGEMENT AND TQM)

Traditional management styles are all essentially management by results. Management feel
justified in letting quality standards slip, adjusting output to meet quotas, and generally forfeiting
the right production standards and procedures to pander to results. This management style is
predicated on the “ends justify the means” philosophy.

Quality-focused management is predicated instead on the quality of the product and


satisfaction of the customer. In this style, the goal is to produce an extremely high-quality product
without cutting corners on quality and without pandering to profits. This is a radical departure from
traditional styles, which applaud profits above quality and virtually every other consideration. In
quality-focused management, profits improve because the product is better, and the customer is
willing to pay for it.

Changing from traditional style to a quality-focused style of management requires re-


education of managers to become leaders instead of bosses as well as clear communication of the
company’s quality vision.

LEARNING CONTENTS (TOTAL QUALITY MANAGEMENT AND REENGINEERING

What is Reengineering?
Reengineering is sometimes called Business Process Reengineering (BPR), this involves a
complete rethinking and transformation of key business processes, leading to strong horizontal
coordination and greater flexibility in responding to changes in environment. Because work is
originated around processes rather than function, reengineering often involves a shift to horizontal
structure based on teams.

Basically, it means starting over, throwing out all the thinking of how work was done and
deciding how it can best be done now.

PANGASINAN STATE UNIVERSITY 7


FM-AA-CIA-15 Rev. 0 10-July-2020

Study Guide in CBMEC 101 – Operations Management (TQM) Module No. 1

The essential difference between Reengineering and TQM is that reengineering aims at
quantum gains on the order of 30% to 50% or more, whereas TQM programs stress incremental
progress, striving for inch-by-inch gains again and again.

Reengineering vs TQM

Reengineering TQM
Similarities:
Basis of analysis Processes Processes
Performance measurement Rigorous Rigorous
Organizational change Significant Significant
Behavioral change Significant Significant
Time investment Substantial Substantial
Differences:
Level of change Radical Incremental
Starting point Clean slate Existing process
Participation Top-down Bottom-up
Typical scope Broad, cross-functional Narrow, within functions
Risk High Moderate
Primary enabler Information technology Statistical control
Type of change Cultural and structural Cultural

TQM is the way of achieving the objective of “total quality”. The techniques used for continuous
improvement and process reengineering are the tools of TQM.

LEARNING ACTIVITY

 Cite the facts (what approaches of quality is implemented, etc.)


 How would you qualify the brand using the three quality types of design, quality of
conformance and quality of performance?

SUMMARY

Quality is not a new concept in modern business. The approaches in quality have long been used by
well effective leaders and managers. The most notable feature is the level of mutual trust that is
needed by both managers and staff to create a culture in which an effective quality management
program can be successful. Quality is everyone’s task, and not limited to the inspection department.
People are anticipated to seriously weigh up their jobs and make the first move to improve their
part of the process which then would result higher quality. High quality goods and services can
provide an organization with a competitive edge. A reputation for high quality generates satisfied
and loyal customers who reward the organization with continued patronage and favorable word-of-
mouth advertising. In contrast, the failure to adequately address quality can be devastating.

PANGASINAN STATE UNIVERSITY 8


FM-AA-CIA-15 Rev. 0 10-July-2020

Study Guide in CBMEC 101 – Operations Management (TQM) Module No. 1

REFERENCES

 Camilar-Serrano, Angelita O., Total Quality Management. (Chapter 1: Introduction to TQM)


 Evans, James R., Lindsay, William M. 2014. Total Quality Management, 9th Edition. (Chapter 3:
Customer Focus)
 Fundamentals of Total Quality Management Process Analysis Improvement, Dahlgaard, Jens J.
Et al.

STUDY GUIDE FOR MODULE NO. ___

STRATEGIC DIMENSIONS OF QUALITY


MODULE OVERVIEW

Quality is multidimensional. Product and service quality are comprised of several dimensions which
determine how customer requirements are achieved. Therefore, it is essential that companies
consider the entire dimension that may be important to their customers. Evaluating all dimensions of
a product or service helps determine how ell the service is given against meeting the customer
requirements.

MODULE LEARNING OBJECTIVES

At the end of this Module, you should be able to:

1. Identify the eight dimensions of product quality.

2. Identify the five dimensions of service quality.

3. Differentiate the dimensions of product and service quality.

LEARNING CONTENTS (DIMENSIONS OF PRODUCT QUALITY)

At a strategic level there are eight dimensions of product quality management that can be used to
evaluate quality characteristics. David Garvin suggested that products have multiple dimensions of
quality.

1. Performance – A product’s primary operating characteristics. It should answer the question “Will
the product do the intended purpose?”. This dimension of quality involves quantifiable attributes.
2. Features – The “bells and whistles” of a product. It should answer the question “What does the
product do?”. Features are added characteristics that boost the attraction of the product or service
to the user.
3. Reliability – The probability of a product’s surviving over a specified period under stated
conditions of use. It should answer the question “How often does the product fail?”. It is the
likelihood that a product will not fail inside a period.
4. Conformance – The degree to which physical and performance characteristics of a product match
pre-established standards. It should answer the question “Is the product made exactly as the
designer intended?”.
5. Durability – The amount of use one gets from a product before it physically deteriorates or until
replacement is preferable. It should answer the question “How long does the product last?”. It is a
measure of how much use a person gets from a product before it breaks down to such a point that
replacement makes more sense than continual repair.

PANGASINAN STATE UNIVERSITY 9


FM-AA-CIA-15 Rev. 0 10-July-2020

Study Guide in CBMEC 101 – Operations Management (TQM) Module No. 1

6. Serviceability – The speed, courtesy, and competence of repair work. It should answer the
question “How easy is it to repair the product?”. It involves the consumer’s ease of obtaining repair
service lie access to service centers and/or ease of self-service.
7. Aesthetics – How a product looks, feels, sounds, taste, or smells. It should answer the question
“What does the product look like?”. It refers to the “outside” feel of the product.
8. Perceived Quality – It is the individuals’ subjective appraisal of the product’s attributes. It answers
the question “What is the reputation of the company or its products?”.

Some dimensions are mutually reinforcing, whereas others are not which means improvement in
one may be at the cost of others. Understanding the trade-offs preferred by customer among these
dimensions can help build a competitive advantage.

LEARNING ACTIVITY 1

After the discussions you are task to read more on the topic and prepare for a recitation as to
assess your understanding of the topic. There will also be an identification and true or false type of
quiz on the chapter. In preparing for the recitation and quiz please consider the following guide
questions.

Competence and ease of repair is the speed with which the product can be put into service when it
breaks down and the competence and the behavior of the service personnel. True or False

Reliability normally becomes more significant to consumers as downtime and maintenance


becomes less expensive. True or False

____________ dimension is the equivalent of physical characteristics of quality goods.

____________ measures the length of a product’s life.

LEARNING CONTENTS (DIMENSIONS OF SERVICE QUALITY)

Service is normally described as an experience felt by the consumer. The quality of service is
evaluated by how well the customer relates to the service. Service quality is about comparing
performance with the customer expectations. Service also leads to customer contentment and
interrelated. The following the dimensions of service quality.

1. Tangibles – It usually refers to the physical facilities and equipment, and appearance of
personnel.
2. Reliability – The characteristic which refers to the ability to provide what was promised,
dependable and accurately.
3. Responsiveness – The willingness to help customers and provide prompt service. This dimension
emphasizes attentiveness and promptness in dealing with customer’s request, questions,
complaints and problems.
4. Assurance – The knowledge and courtesy of employees, and their ability to convey trust and
confidence.
5. Empathy – The degree of caring and individual attention provided to customers. This is being
able to understand the needs of the customers as an individual and meet the special requirement of
the customer.

The key to preserve customers is to be aware of their needs and fulfill those needs. Making
customers purchase the service continually needs focus on dimensions of service quality.

LEARNING ACTIVITY 2

PANGASINAN STATE UNIVERSITY 10


FM-AA-CIA-15 Rev. 0 10-July-2020

Study Guide in CBMEC 101 – Operations Management (TQM) Module No. 1

After the discussions you are task to read more on the topic and prepare for a recitation as to
assess your understanding of the topic. There will also be an identification and true or false type of
quiz on the chapter. In preparing for the recitation and quiz please consider the following guide
questions.

Competence and ease of repair is the speed with which the product can be put into service when it
breaks down and the competence and the behavior of the service personnel. True or False

Reliability normally becomes more significant to consumers as downtime and maintenance


becomes less expensive. True or False

____________ dimension is the equivalent of physical characteristics of quality goods.

____________ measures the length of a product’s life.

SUMMARY

Quality is said to be multidimensional. Product and Service quality are composed of several
different dimensions which determine how business can achieve customer requirements. Thus, it is
essential that companies consider the entire dimension that may be important to their customers.
Quality is an attitude of mind as quality is in the eye of the consumers. It is the total sum of features
liked by the consumers while purchasing a product or service. Evaluating all dimensions of a
product or service helps to determine how well the service is given against meeting the customer
requirements.

REFERENCES

Camilar-Serrano, Angelita O., Total Quality Management. (Chapter 2: Strategic Dimensions of


Quality)

Evans, James R., Lindsay, William M. 2014. Total Quality Management, 9th Edition. (Chapter 3:
Customer Focus)

Fundamentals of Total Quality Management Process Analysis Improvement, Dahlgaard, Jens J. Et


al.

STUDY GUIDE FOR MODULE NO. ___

PHILOSOPHIES AND FRAMEWORKS


MODULE OVERVIEW

To fully understand the TQM movement, there are philosophies of notable individuals who have
been critical in the emergence and development of contemporary knowledge regarding quality. In
this chapter we will be discussing the major philosophies in quality these include the Deming
Philosophy, the Juran Philosophy, and the Crosby Philosophies each of these philosophies have
their key points, similarities and differences, and also their contributions to modern practice. Other
philosophies will also be discussed which helped to shape current thinking in quality management.

PANGASINAN STATE UNIVERSITY 11


FM-AA-CIA-15 Rev. 0 10-July-2020

Study Guide in CBMEC 101 – Operations Management (TQM) Module No. 1

MODULE LEARNING OBJECTIVES

At the end of this Module, you should be able to:

1. Identify the different quality philosophers in quality management

2. Recognize contributions of quality philosophers in quality management

LEARNING CONTENTS (THE DEMING PHILOSOPHY)

No individual has had more influence on quality management than Dr. William Edwards Deming
(1900 – 1993). Deming received a Ph.D. in physics and was trained as a statistician, so much of his
philosophy can be traced to these roots. He is best known as one of the “early” pioneers, and was
credited with popularizing quality control in Japan in early 1950s.Today, he is regarded as a national
hero in that country and is the father of the world famous Deming prize for quality.

The following are the notable contributions of Dr. W. Edwards Deming, he advocated Statistical
Process Control which emphasizes on the methods which signal shifts in a process that will likely
lead to products and/or services not meeting customer requirements. Emphasized an overall
organizational approach to managing quality. He also demonstrated that quality products are less
costly than poor quality products. Lastly, he identified 14 points critical for improving quality.

Demings 14 Points for improving quality


1. Create constancy of purpose for improvement of product and service.
2. Adopt the new philosophy.
3. Cease dependence on mass inspection.
4. End the practice of awarding business on the price tag alone.
5. Improve constantly and forever the system of production and training.
6. Institute training.
7. Institute leadership.
8. Drive out fear.
9. Break down barriers between staff areas.
10. Eliminate slogans, exhortations, and targets for the workforce.
11.Eliminate numerical quotas.
12. Remove barriers to pride in workmanship.
13. Institute a vigorous program of education and retraining.
14. Take action to accomplish the program.

Demings System of Profound Knowledge


1. Appreciation for a system
2. Understanding process variation
3. Theory of Knowledge
4. Psychology

LEARNING CONTENTS (THE JURAN PHILOSOPHY)

Dr. Joseph Juran assisted the Japanese in their reconstruction processes after world war II. He
firstly became well-known in the US as the editor of the Quality Control Handbook and alter for his
paper introducing the quality trilogies. He also Emphasized the importance of producing quality
products through an approach focused on quality planning, control, and improvement.

Quality Trilogy

PANGASINAN STATE UNIVERSITY 12


FM-AA-CIA-15 Rev. 0 10-July-2020

Study Guide in CBMEC 101 – Operations Management (TQM) Module No. 1

1. Quality planning: Process of preparing to meet quality goals. Involves understanding customer
needs and developing product features.
2. Quality control: Process of meeting quality goals during operations. Control parameters.
Measuring the deviation and acting.
3. Quality improvement: Process for breaking through to unprecedented levels of performance.
Identify areas of improvement and get the right people to bring about the change.

Ten Steps to Quality

1. Established awareness for the need to improve and the opportunities for improvement
2. Set goals for improvement
3. Organize to meet the goals that have been set
4. Provide training
5. Implement projects aimed at solving problems
6. Report progress
7. Give recognition
8. Communicate results
9. Keep score
10. Maintain momentum by building improvement into company’s regular systems

LEARNING CONTENTS (THE CROSBY PHILOSOPHY)

Philip Crosby came to national prominence with the publication of his book Quality is Free. He
established the absolutes of quality management, which states that the only performance standard
is zero defects and basic elements of improvement. He also believed that an organization can
reduce overall costs by improving the overall quality of its processes.

Steps to quality improvement by Philip Crosby

Step 1: Management Commitment


Step 2: Quality Improvement Team
Step 3: Quality Measurement
Step 4: Cost of Quality Education
Step 5: Quality Awareness
Step 6: Corrective Action
Step 7: Establish an Ad Hoc Committee for the Zero Defects Program
Step 8: Supervisor Training
Step 9: Zero Defects Day
Step 10: Goal Setting
Step 11: Error Cause Removal
Step 12: Recognition
Step 13: Quality Council
Step 14: Do it Over Again

Absolutes of Management

Quality means conformance to requirements not elegance.


There is no such thing as quality problem.
There is no such thing as economics of quality: it is always cheaper to do the job right the first time.
The only performance measurement is the cost of quality: the cost of non-conformance.

LEARNING CONTENTS (OTHER QUALITY GURUS)

PANGASINAN STATE UNIVERSITY 13


FM-AA-CIA-15 Rev. 0 10-July-2020

Study Guide in CBMEC 101 – Operations Management (TQM) Module No. 1

Dr. Walter A. Shewhart

Developed statistical control process methods to distinguish between random and nonrandom
variation in industrial processes to keep processes under control.
Developed the “plan-do-check-act” (PDCA) cycle that emphasizes the need for continuous
improvement. He Strongly influenced Deming and Juran.

Dr. Armand Feigenbaum

Proposed the concept of “total quality control,” making quality everyone’s responsibility.
Stressed interdepartmental communication.
Emphasized careful measurement and report of quality costs.

Three Steps of Quality


1. Quality Leadership
2. Modern Quality Technology
3. Organizational Commitment

Prof. Kaoru Ishikawa

Developed problem-solving tools such as the cause-and-effect (fishbone) diagram.


Called the father of quality circles.

Quality tools
1. Process flow chart
2. Check sheet
3. Histogram
4. Pareto chart
5. Cause – effect diagram
6. Scatter diagram
7. Control Chart

Genichi Taguchi

Emphasized the minimization of variation. Concerned with the cost of quality to society. Extended
Juran’s concept of external failure.

Dr. Shingo Shigeo

Dr. Shingeo was one of the greatest influences on Japanese quality control and his contributions to
quality improvement transformed the Japanese industrial sector and accordingly influenced the
industries in the west.

1. Just In Time (JIT)


2. Single Minute Exchange of Dies (SMED)
3. Zero Quality Control (ZQC)

Masaki Imai

Masaki Imai is the founder and president of Kaizen Institute who threw the work “Kaizen”. Kaizen
refers to continuous or on-going improvement

LEARNING ACTIVITY

PANGASINAN STATE UNIVERSITY 14


FM-AA-CIA-15 Rev. 0 10-July-2020

Study Guide in CBMEC 101 – Operations Management (TQM) Module No. 1

After the discussions you are task to read more on the topic and prepare for a quiz as to assess
your understanding of the topic. The quiz will be having 3 parts. Part 1 would be Identification, Part
2 will be True or False, and then part 3 will assess your knowledge of the different steps and Points
of the different gurus of quality.

SUMMARY

Despite their significant differences to implementing organizational change, the philosophies of


Deming, Juran, and Crosby are more alike than different. Each views quality as imperative in the
future competitiveness in global markets; make top management commitment an absolute
necessity; demonstrates that quality management practices will save, not cost money.

REFERENCES

Camilar-Serrano, Angelita O., Total Quality Management. (Chapter 3: Gurus of Total Quality
Management)

Evans, James R., Lindsay, William M. 2014. Total Quality Management, 9th Edition. (Chapter 3:
Customer Focus)
Fundamentals of Total Quality Management Process Analysis Improvement, Dahlgaard, Jens J. Et
al.

STUDY GUIDE FOR MODULE NO. ___

CONTINUOUS IMPROVEMENT: PHILOSOPHIES, CONCEPTS AND SYSTEMS

MODULE OVERVIEW

Continuous improvement or also known as “Kaizen” is a philosophy that drive people and their organizations
to implement ongoing improvement at every level. Through concentrating on small, incremental changes
rather than a massive innovation, Kaizen seek to create effective and efficient outputs and processes.

For this module the topics will focus on the kaizen concepts, systems, and the driver framework for continuous
improvement.

*Majority of the contents are drawn from [Prof Anelita Ong Camilar-Serrano] Total Quality Management and other
references at the end of the module as a guide

MODULE LEARNING OBJECTIVES

At the end of this Module, you should be able to:

1. Define Kaizen as philosophy

2. Describe the different concepts of Kaizen

3. Explain the systems under Kaizen

4. Apply the philosophy of Kaizen in everyday activities

LEARNING CONTENTS (KAIZEN CONCEPTS)

Kaizen is a Japanese word which means continuous improvement. It is made up of two characters which are

PANGASINAN STATE UNIVERSITY 15


FM-AA-CIA-15 Rev. 0 10-July-2020

Study Guide in CBMEC 101 – Operations Management (TQM) Module No. 1

“kai”, meaning “change” and “zen” which means “good”. It is used to describe a company culture where
everyone, from the top management to the bottom, regularly evaluates work and think of ways to improve.

The idea of the concept is that gradual steps will eventually lead to large improvement. Typically, it is based
on cooperation and commitment and stands in contrast to approaches that use radical changes or top-down
edicts to achieve transformation. It is a Japanese business philosophy regarding the processes that
continuously improve operations and involve all employees. 

Kaizen has its origins in post-World War II Japanese quality circles. These circles or groups of workers
focused on preventing defects at Toyota and were developed partly in response to American management
and productivity consultants who visited the country, especially W. Edwards Deming, who argued that quality
control should be put more directly in the hands of line workers.

A lot of people have misunderstanding about kaizen. People have the stereotype that kaizen can make
dramatical changed immediately and bring the profits right away. However, this is not true. Improvement
under kaizen is small and incremental, but kaizen will bring the huge results over time.

There are two types of kaizen which are Gemba (actual workplace) kaizen and Teian (plan) kaizen. Gemba
and teian kaizen both intend to develop higher production and quality standard. Gemba kaizen is an action-
oriented approach and refers to improvement activities that are carried out in actual workplace, like on the
shop floor or on the manufacturing line. Gemba kaizen involves all aspect of daily work that can be improved.
The heart of gemba kaizen lies in small changes that will transform overall success of the company not
automatically right away but in the long run. Teian kaizen, on the other hand, represents a theory-based
approach and refers to strategic improvements that are prejudiced by top management. Here, the
implementation of latest processes and practices play the most dominant role. The overall goals of teian
kaizen are improved business and manufacturing practices. The most prominent teian kaizen methods include
total quality control and just-in-time management.

Kaizen Principles

1. Let go of assumptions.
2. Be proactive about solving problems.
3. Do not accept the status quo.
4. Let go of perfectionism and take an attitude of iterative, adaptive change.
5. Look for solutions as you find mistakes.
6. Create an environment in which everyone feels empowered to contribute.
7. Do not accept the obvious issue; instead, ask "why" five times to get to the root cause.
8. Cull information and opinions from multiple people.
9. Use creativity to find low-cost, small improvements.
10. Never stop improving.

Kaizen and Management

It is also essential that management is trained and be behind the effort. Kaizen will result in many more
suggestions for improvements and changes and will take away from a strict focus on moving items quickly
through the existing production process. Management must be prepared to reorganize some time away from
current work to focus on changes with longer-range impact.

Management has two major components which are maintenance, and improvement. The objective of
maintenance function is to maintain current technological, managerial, and operating standards. The
improvement function is aimed at improving current standards. Under maintenance function, the management
must first improve establish policies, rules, directives, and standard operating procedures (SOPs) and then
work towards ensuring that everybody follows SOP.

Under the improvement function, management works constantly towards modifying the existing standards,
once they have been mastered, and establishing higher ones. Improvement can be broken down between
innovation and kaizen. Innovations involves a drastic improvement in the existing process and requires large
investment and big efforts. Kaizen signifies small improvements as a result of coordinated continuous efforts
by all employees.

PANGASINAN STATE UNIVERSITY 16


FM-AA-CIA-15 Rev. 0 10-July-2020

Study Guide in CBMEC 101 – Operations Management (TQM) Module No. 1

Managers needs to work closely with senior management, human resource professionals to develop perfect
implementation strategies. A manager must act as a bridge between the senior management and the entire
workforce.

1. The role of a manager is to act as a facilitator at the workplace.


2. A manager must communicate the benefits of total quality management to all other members of the
organization.

A manager is always a strong source of inspiration for other employees. He needs to practice TQM himself
before expecting others to believe in the same principle.

Process Vs Results

Process-oriented thinking mostly centers on how processes are carried out through the assessment of
performance indicators generated by measuring or observing the process flow. Results-oriented thinking
basically disregards how processes flow and work.

Kaizen focuses at improving the process rather than at achieving certain results. Such managerial attitudes
and process thinking formulate a major difference in the manner an organization masters change and
achieves improvements. This concept of process-oriented thinking indicates that there must be some
problems in a process in the outcomes are not encouraging to the firm.

Kaizen recognizes the connection between outcomes and processes. If the results from an organization are of
poor quality, the processes used to achieve those results necessitate concentration. The manner in which
processes are addressed is a key element of Kaizen.

Features of Process and Results criteria

P (Process-Oriented) criteria R (Results-Oriented) criteria


Long-term orientation Short-term orientation
Efforts for improvement are important Performance and results are important
It is cared how the processes work and how results Degree of goal achievement is important
are obtained
Process-oriented indicators are follows Result-oriented indicators are followed
Awards are determined on the basis of how Awards are determined on the basis of results of the
processes flow processes.
Rewards are generally based on recognition and Rewards are generally related to financial
honor geared to the effort made performance
Discipline, time management, skill development, The results and reaching goals in designated time
participation and involvement, morale, and frame are important
communication are important
A supportive and collaborative role is seen among Control-centric behavior is more common among
managers in process-oriented management. results-oriented managers.

PDCA/SDCA Cycles

Central to the philosophy of Kaizen are two cycles that involve processes for improvement and for
maintenance: Plan-Do-Check-Act (PDCA) and Standardize-Do-Check-Act (SDCA).

1. Planning Phase – Planning is the most vital phase of total quality management. In this phase employees
have to come up with their problems and queries which need to be addressed.

2. Doing Phase – In the doing phase, employees develop a solution for the problems defined in planning
phase.

3. Checking Phase – Checking phase is the stage where people actually do comparison analysis of before
and after data to confirm the effectiveness of the processes and measure the results.

PANGASINAN STATE UNIVERSITY 17


FM-AA-CIA-15 Rev. 0 10-July-2020

Study Guide in CBMEC 101 – Operations Management (TQM) Module No. 1

4. Acting Phase – In this phase employees document their results and prepare themselves to address other
problems.

The SDCA cycle ensures that the improvements that have been done using Kaizen works well and
improvements do not slide back. SDCA prevents the deterioration and therefore it is extremely important that
both the SDCA and PDCA cycles are well established.

Standard is the best, safest and easiest way, to achieve and maintain a defined quality level.

Standards should be:

1. Be simple, clear and conspicuous


2. Be the best, easiest, safest way – should only have one at a time.
3. Preserve know – how
4. Be guide-lines that enable performance
5. Measurement of task delegated
6. Assure quality, cost, delivery and safety
7. Show relationship between cause and effect

LEARNING CONTENTS (KAIZEN SYSTEMS)

Kaizen encompasses many of the components of Japanese business that have been seen as part of their
success. Total quality control/total quality management, just-in-time delivery, total productive maintenance,
suggestion system, policy development, suggestion systems, and small-group activities are all included within
the kaizen system of running a business.

A. Total Quality Control (TQC) is a management tool for improving total performance. TQC means organized
kaizen activities involving everyone in a company. Managers and workers alike should be part of a totally
systematic and integrated effort toward improving performance at every level. Quality control deals with
quality of people. Building quality into its people brings a company a half-way towards producing quality
products.

B. JIT Production System – Just-in-time (JIT) is a revolutionary way to trim down cost while at the same time
meeting the customer’s delivery needs. For example, new stock will be ordered automatically when stock
reaches the re-order point level. So, this system ensures that the firm can maintain the minimum required
number of stocks every day, which saves a lot of inventory costs.

C. Total Productive Maintenance – In industry, total productive maintenance (TPM) is a system of maintaining
and improving the integrity of production and quality systems through the machines, equipment, processes,
and employees that add business value to an organization. TPM focuses on maintaining all equipment in top
working condition to avoid breakdowns and delays in manufacturing processes.

Types of maintenance
1. Breakdown Maintenance
2. Preventive Maintenance
a. Periodic maintenance
b. Predictive maintenance
3. Corrective Maintenance
4. Maintenance Prevention

D. Policy Development – Policy are guide which shows the statement’s on quality, I also reflects
management’s commitment and orientation and to propagate them through various modes, such as
circulation of documents, newsletters, training, meetings, pledge cards and personal contacts.

E. Suggestion Systems – is one which is regarded as individual-oriented kaizen. Suggestion system


encourages all workers to talk about their suggestions orally with supervisors and put them into action right

PANGASINAN STATE UNIVERSITY 18


FM-AA-CIA-15 Rev. 0 10-July-2020

Study Guide in CBMEC 101 – Operations Management (TQM) Module No. 1

away.

Stages of Suggestion System


1. Encouragement. Management should make every effort to help the workers provide suggestions, no matter
how primitive, for the betterment of the worker’s job and workshop.
2. Education. Management should stress employee education so that employees can provide better
suggestions.
3. Efficiency. Management should be concerned with the economic impact of the suggestions.

LEARNING CONTENTS (THE DRIVER FRAMEWORK FOR CONTINUOUS IMPROVEMENT)

How do Kaizen work?

Kaizen is based on the belief that everything can be improved, and nothing is status quo. Kaizen also rests on
a respect for people principle. Kaizen involves identifying issues and opportunities, creating solutions and
rolling them out -- and then cycling through the process again for other issues or problems that were
inadequately addressed. These following seven steps create a cycle for continuous improvement and give a
systematic method for executing this process.

Get employees involved – Seek the involvement of employees, including gathering their help in identifying
issues and problems. Doing so creates buy-in for change. Often, this is organized as specific groups of
individuals charged with gathering and relaying information from a wider group of employees.

Find problems – Using widespread feedback from all employees, gather a list of problems and potential
opportunities. Create a shortlist if there are many issues.

Create a solution – Encourage employees to offer creative solutions, with all manner of ideas encouraged.
Pick a winning solution or solutions from the ideas presented.

Test the solution – Implement the winning solution chosen above, with everyone participating in the rollout.
Create pilot programs or take other small steps to test out the solution.

Analyze the results – At various intervals, check progress, with specific plans for who will be the point of
contact and how best to keep ground-level workers engaged. Determine how successful the change has
been.

Standardize – If results are positive, adopt the solution throughout the organization.

Repeat – These seven steps should be repeated on an ongoing basis, with new solutions tested where
appropriate or new lists of problems tackled.

PDCA Cycles – Planning Phase, Doing Phase, Checking Phase, and Acting Phase.

LEARNING ACTIVITY 1

Direction: Read the story of Toyota and answer the questions below it.

Toyota’s Kaizen Experience

Toyota’s history goes back to 1897, when Sakichi Toyoda (Sakichi) diversified into the handloom machinery
business from his family traditional business of carpentry. He founded Toyota Automatic Loom Works (TALW)
in 1926 for manufacturing automatic looms. Sakichi invented a loom that stopped automatically when any of
the threads snapped. This concept of designing equipment to stop so that defects could be fixed immediately
formed the basis of the Toyota Production System (TPS) that went on to become a major factor in the
company’s success. In 1933, Sakichi established an automobile department within TALW and first passenger
car prototype was developed in 1935.

PANGASINAN STATE UNIVERSITY 19


FM-AA-CIA-15 Rev. 0 10-July-2020

Study Guide in CBMEC 101 – Operations Management (TQM) Module No. 1

Sakichi’s son Kiichiro Toyoda (Kiichiro) convinced him enter automobile business. After this production of
Model AA began and Toyota Motor Corporation was established in 1937. Kiichiro visited the Ford Motor
Company in Detroit to study the US automotive industry.

He saw that an average US worker’s production was nine times that of a Japanese worker. He realized that
the productivity of the Japanese automobile industry has to be increased if it were to compete globally.

Back in Japan, he customized the Ford production system to suite Japanese market. He also devised a
system wherein each process in the assembly line of production would produce only the number of parts
needed at the next step on the production line, which made logistic management easier as material was
procured according to consumption. This system was referred to as Just-in-Time (JIT) within the Toyota
Group.

The JIT production was defined as “producing only necessary units in a necessary quantity at a necessary
time resulting in decreased excess inventories and excess workforce, thereby increasing productivity.” Kiichiro
realized that by relying solely on the central planning approach, it would be very difficult to implement JIT in all
the processes for an automobile.

Hence, TPS followed the production flow conversely. People working in one process went to the preceding
one to withdraw the necessary units in the necessary quantities at the necessary time. This resulted in the
preceding process producing only quantities of units to replace those that had been withdrawn.

In the early 1990s, the Japanese automobile major, Toyota Motor Corporation (Toyota) was facing acute labor
shortage. The emergence of high wage jobs and a shortage of young workers due to the low birth rates in
Japan in the previous two decades were the primary reasons for this. The number of women and aged people
was increasing in the country’s labor pool. These people avoided heavy manufacturing work.

Toyota’s strong focus on improving productivity and production efficiency over the decades had created
strained work atmosphere as the workers were reportedly overburdened. This led to an exodus of young
workers from the company.

In 1990, around 25% of newly hired young workers left the company in their first year itself. To deal with the
labor shortage problem, Toyota employed many temporary workers in the assembly plants. The ratio of
temporary workers in the workforce soon reached more than 10% - some work groups had around 75%
temporary workers. As these temporary workers were not adequately trained, the annual working hours of the
company increased, while productivity decreased.

Further, according to analyst, Toyota management’s focus on increasing production efficiency by achieving
higher production levels with less number of workers resulted in increased stress for the workers. This also
played a major part in the worker exodus. Toyota’s problems increased with by the global upsurge in car
demand during 1987 – 1991 because of which the demand for labor shot up. As high wage jobs were easily
available to the limited pool of young male workers, many Toyota workers began to leave the company. To
handle the crisis, Toyota radically changed its production management and human resource management
practices.

The company decided to change its working conditions to attract high school female graduates and workers
over forty years. Toyota realized that it would have to rely on Kaizen for modifying its existing assembly lines
to attract workers.

Questions:

1. What problem happened in Toyota? How was it solved? Relate the story.

2. If you are part of Toyota’s management, how will you solve the problem using kaizen? Discuss your
answer.

SUMMARY

PANGASINAN STATE UNIVERSITY 20


FM-AA-CIA-15 Rev. 0 10-July-2020

Study Guide in CBMEC 101 – Operations Management (TQM) Module No. 1

A combination of process-oriented and results-oriented management should be implemented throughout the


entire operational system instead of focusing on just one orientation as this heightened focus may not be
enough to generate successful continuous improvement strategy. Continuous improvement can be either a
team management or top management initiative.

REFERENCES

Camilar-Serrano, Angelita O., Total Quality Management. (Chapter 2: Strategic Dimensions of Quality)

Evans, James R., Lindsay, William M. 2014. Total Quality Management, 9 th Edition. (Chapter 3: Customer
Focus)

Fundamentals of Total Quality Management Process Analysis Improvement, Dahlgaard, Jens J. Et al.

STUDY GUIDE FOR MODULE NO. ___


5

GOOD HOUSEKEEPING
MODULE OVERVIEW

A dirty workplace cannot produce quality products. A chaotic workplace with mess around
everywhere is bound to produce poor quality products. Everyone and all types of business benefit
from having a well-constructed 5S program. It is usually manufacturing that comes to mind but any
type of business from hospital to professional services and every area or department within the
organization will benefit from implementing a 5S program.

MODULE LEARNING OBJECTIVES

At the end of this Module, you should be able to:

1. Define 5s as a philosophy for improvement

2. Identify the 5s activities

3. Apply 5s in everyday life

LEARNING CONTENTS (THE 5S SYSTEM)

The 5S process, or simply “5S”, is a structured program to systematically achieve total organization,
cleanliness, and standardization in the workplace.
A well-organized workplace results in a safer, more efficient, and more productive operation. It
boosts the morale of the workers, promoting a sense of pride in their work and ownership of their
responsibilities.

5S is originally developed By HIROYUKI HIRANO for manufacturing companies in Japan, the


principles of 5S translate well to any work environment like corporate or government office. 5S is a
system , a culture much within a framework of Japanese philosophy of change for the better.

LEARNING CONTENTS (THE CONCEPT OF SORTING)

Sort (Seiri) is the first stage of the 5S system, it means that all tools and materials used in the work
process are taken care of. Sort refers to the sorting of the clutter from the other items within the

PANGASINAN STATE UNIVERSITY 21


FM-AA-CIA-15 Rev. 0 10-July-2020

Study Guide in CBMEC 101 – Operations Management (TQM) Module No. 1

work area that are needed. Sort connotes tidiness and structured organization.

During this process, all materials and tools are sorted, and only the necessary ones are kept for
continued use. In other words, this step requires the team to remove all items that clearly do not
belong in the working area and only leave those that are required for the process.

Since sort focuses on eliminating unnecessary items from the workplace, employees should sort out
and organize things well. The employees may label the items as ‘necessary’, “critical”, “most
important”, “not needed now”, “useless and so on”.

Being able to apply the systems has a lot of benefit and there are also consequences of not
practicing sorting:
1. The unnecessary messes the place and the necessary are hard to find.
2. Every place can only contain so much.
3. Mess sometimes causes misidentification.

LEARNING CONTENTS (THE CONCEPT OF SETTING IN ORDER)

Set in Order, was originally called “seiton,” which translates to “orderliness.” A variety of names
have been used in English: “Systematic Organization,” “Straightening Out,” and “Simplify,” for
example. No matter what it’s called, the goal of this step is to organize the work area. Each item
should be easy to find, use, and return: a place for everything, and everything in its place.

Tools that are used frequently should be stored near the place they are used. Spare equipment,
supplies, and other tools that are used less often can be kept in a central location, where multiple
teams can share them. Items that are typically used together (such as drills and drill bits) should be
stored near each other. Each of these decisions will make sense on its own, but it may become
difficult to keep track of everything. It may be helpful to create a 5S map as part of this process.

Once storage locations are assigned, each storage area should be labeled. Label the outside of
cabinet doors to help workers quickly identify what is inside each one. Then, label any interior
shelves to show where different supplies belong. The same ideas extend to rack labels, bins, and
other storage systems.

LEARNING CONTENTS (THE CONCEPT OF SHINE)

The third step of 5S is Shine, or “seiso,” which means “cleanliness.” While the first and second
steps cleared up space and arranged the area for efficiency, this step attacks the dirt and grime that
inevitably builds up underneath the clutter and works to keep it from coming back.

Shine moves far beyond just pushing a broom around every now and then. It involves regular
cleaning of every part of the work area — often a daily wipe-down, and a more thorough cleaning
each week.

Importantly, the Shine step is not meant to be a job for the maintenance or janitorial staff. Each
worker should clean their own work area, and the equipment they use. This approach has several
benefits:

 Workers who are familiar with the area will quickly notice any problems that arise
 Hazards or difficult situations will be understood and accounted for
 Items that are out of place or missing will be recognized
 Workers will tend to keep their own workspaces cleaner during normal operations

PANGASINAN STATE UNIVERSITY 22


FM-AA-CIA-15 Rev. 0 10-July-2020

Study Guide in CBMEC 101 – Operations Management (TQM) Module No. 1

Keeping work areas clean will have many advantages. One important advantage is that it’s easy to
spot leaks, cracks, or misalignments. If the people keeping the area clean are the same people who
work there regularly, they will be quick to recognize any of these problems.

Leaving those problems unnoticed and unresolved could result in equipment failure, safety hazards,
and loss of productivity. With the constant cleaning and inspections used in the Shine step of 5S,
the system can feed into a preventative maintenance program.

LEARNING CONTENTS (THE CONCEPT OF STANDARDIZATION)

The first three steps of 5S cover the basics of clearing, organizing, and cleaning a workspace; on
their own, those steps will provide short-term benefits. The fourth step is Standardize, or “seiketsu,”
which simply means standardization. By writing down what is being done, where, and by whom, you
can incorporate the new practices into normal work procedure. This paves the way for long-term
change.

It has been said that “If it isn’t written down, it didn’t happen.” Writing down the decisions that you
make in your 5S program will help ensure that your work does not just disappear. If you made a 5S
map in the Set in Order step, that map can be part of your new standard for the area. In the same
way, the process that you use for red-tagging items can be written down and included in the
standards.

Writing out your decisions does not mean you can’t change your mind, though. The purpose of 5S is
to make your workplace better, not to make it unchangeable. You are writing the standards for your
facility, and you can change them to fit new information or new business needs.

Once you have made decisions on how to change your work practices, those decisions need to be
communicated to workers. This communication is a key part of the Standardize step. Common tools
for this process include:

 5S checklists – Listing the individual steps of a process makes it easy for workers to follow
that process completely. It also provides a simple auditing tool to check progress later.
 Job cycle charts – Identify each task to be performed in a work area and decide on a
schedule or frequency for each of those tasks. Then, assign responsibility to a particular
worker (or job duty). The resulting chart can be posted visibly to resolve questions and
promote accountability.
 Procedure labels and signs – Provide operating instructions, cleaning steps, and
preventative maintenance procedures right where that information will be needed.

LEARNING CONTENTS (THE CONCEPT OF SUSTAINABILITY)

The fifth step of a 5S program is Sustain, or “shitsuke,” which literally means “discipline.” The idea
here is continuing commitment. It is important to follow through on the decisions that you have
made — and continually return to the earlier steps of 5S, in an ongoing cycle.

The 5S approach was never meant to be a one-time event, but an ongoing cycle. This is key
because early successes in 5S can open the way for problems. If open space becomes available in
the Sort step, but afterward, tools and materials can gradually fill in that space without any
organization, the result can be an even bigger mess. The solution is to apply the ideas of 5S over
and over, as a routine part of normal work. That is why Sustain is so important.

Sustaining a 5S program can mean different things in different workplaces, but there are some

PANGASINAN STATE UNIVERSITY 23


FM-AA-CIA-15 Rev. 0 10-July-2020

Study Guide in CBMEC 101 – Operations Management (TQM) Module No. 1

elements that are common in successful programs.

 Management support – Without visible commitment from managers, the 5S processes will
not stick around. Supervisors and managers should be involved in auditing the 5S work
processes and getting feedback from workers. They also need to provide the tools, training,
and time for workers to get their jobs done right.
 Department tours – Bringing teams from one department to visit other departments will help
familiarize the entire workforce with the processes of your facility. This type of “cross
pollination” helps to spread good ideas and inspires people to come up with new ways to
improve the 5S implementation.
 Updated training – As time passes, there may be changes in your workplace, such as new
equipment, new products, or new work rules. When this happens, revise your 5S work
standards to accommodate those changes, and provide training on the new standards.
 Progress audits – The standards that are created in the 5S program should provide specific
and measurable goals. Checking on those goals with a periodic audit can provide important
information and guidance. Where is 5S working well? Where are teams falling behind?
 Performance evaluations – Once you know your goals are reasonable, make performance
part of each employee evaluation. When teams and individuals perform well, celebrate it,
and post overall results so each team can see how they compare to the rest of the facility.

LEARNING ACTIVITY 2

After the discussions you are task to read more on the topic and prepare for a quiz as to assess
your understanding of the topic.

SUMMARY

The 5S system is a lean manufacturing tool that improves workplace efficiency and eliminates
waste. There are five steps in the system, each starting with the letter S: Sort, Set in Order, Shine,
Standardize, Sustain.

By providing a systematic framework for organization and cleanliness, 5S helps facilities avoid lost
productivity from delayed work or unplanned downtime.

These steps feed into each other, so the sequence is important.

Clearing out unnecessary materials in step 1 (Sort) will provide the space needed to organize the
important items in step 2 (Set in Order).
Then, once the workspace is de-cluttered and organized, dirt and grime can be removed in step 3
(Shine).
These changes to workers’ job duties and work environment should be reflected in updated
procedures through step 4 (Standardize).
Finally, those new procedures will not amount to much unless responsibility is assigned and
progress is tracked — as required for step 5 (Sustain). And with responsibility and tracking, workers
will continue to apply the steps, returning to step 1.

When it comes to lean manufacturing and workplace improvement, 5S is one of the most widely
known and used lean tools. It is no surprise: 5S can increase workplace efficiency, reduce costs,
and improve quality

REFERENCES

PANGASINAN STATE UNIVERSITY 24


FM-AA-CIA-15 Rev. 0 10-July-2020

Study Guide in CBMEC 101 – Operations Management (TQM) Module No. 1

Camilar-Serrano, Angelita O., Total Quality Management. (Chapter 2: Strategic Dimensions of


Quality)
Evans, James R., Lindsay, William M. 2014. Total Quality Management, 9th Edition. (Chapter 3:
Customer Focus)
Fundamentals of Total Quality Management Process Analysis Improvement, Dahlgaard, Jens J. Et
al.

STUDY GUIDE FOR MODULE NO. ___


6

PHASES IN TQM IMPLEMENTATION


MODULE OVERVIEW

Jablonski offers a five-phase guideline for implementing total quality management: preparation,
planning, assessment, implementation, and diversification. Each phase is designed to be executed
as part of a long-term goal of continually increasing quality and productivity. Jablonski's approach is
one of many that has been applied to achieve TQM, but contains the key elements commonly
associated with other popular total quality systems.

MODULE LEARNING OBJECTIVES

At the end of this Module, you should be able to:

1. Recognize the different phases in TQM implementation


2. Identify some of the methods in generating ideas for the planning phase
3. Name the barriers in TQM implementation

LEARNING CONTENTS (PREPARATION)

Preparation—During preparation, management decides whether to pursue a TQM program. They


undergo initial training, identify needs for outside consultants, develop a specific vision and goals,
draft a corporate policy, commit the necessary resources, and communicate the goals throughout
the organization.

LEARNING CONTENTS (PLANNING)

Planning—In the planning stage, a detailed plan of implementation is drafted (including budget and
schedule), the infrastructure that will support the program is established, and the resources
necessary to begin the plan are earmarked and secured.

Methods in generating ideas for the planning phase

1. The Whys’ – Asking ‘why?’ at least five times to unearth the core cause of a problem.

2. Benchmarking – is a technique that measures a company’s performance against the best in the
industry.

 Internal Benchmarking – Comparison between operations or parts of operations which are


within the same organization
 External Benchmarking -
 Non-competitive benchmarking

PANGASINAN STATE UNIVERSITY 25


FM-AA-CIA-15 Rev. 0 10-July-2020

Study Guide in CBMEC 101 – Operations Management (TQM) Module No. 1

 Competitive benchmarking
 Performance benchmarking
 Practice benchmarking

3. Brainstorming

LEARNING CONTENTS (ASSESSMENT)

Assessment—This stage emphasizes a thorough self-assessment—with input from


customers/clients—of the qualities and characteristics of individuals in the company, as well as the
company.

There are three methods that can be used in making an assessment which are discussion group
methods, survey methods and award type.

LEARNING CONTENTS (IMPLEMENTATION)

Implementation—At this point, the organization can already begin to determine its return on its
investment in TQM. It is during this phase that support personnel are chosen and trained, and
managers and the work force are trained. Training entails raising workers' awareness of exactly
what TQM involves and how it can help them and the company. It also explains each worker's role
in the program and explains what is expected of all the workers.

Barriers to TQM Implementation

1. Lack of management commitment – In order for any organizational effort to succeed, there
must be a substantial management commitment of management time and organizational
resources. The purpose must be clearly and continuously communicated to all personnel.
2. Inability to change organizational culture – Changing organization’s culture is difficult and will
require as much as five years. Management must understand and utilize the basic concepts
of change.
a. People change when they want to and to meet their own needs.
b. Never expect anyone to engage in behavior that serves the organization’s values
unless adequate reason has been given.
c. For change to be accepted, people must be moved from a state of fear to trust.
d. Improper planning
3. Lack of Continuous training and education
4. Incompatible organizational structure and isolated individuals and departments
5. Ineffective measurement techniques and lack of access to data and results
6. Paying inadequate attention to internal and external customer
7. Inadequate use of empowerment and teamwork
8. Failure to continually improve

LEARNING CONTENTS (DIVERSIFICATION)

Diversification—In this stage, managers utilize their TQM experiences and successes to bring
groups outside the organization (suppliers, distributors, and other companies have impact the
business's overall health) into the quality process. Diversification activities include training,
rewarding, supporting, and partnering with groups that are embraced by the organization's TQM
initiatives.

PANGASINAN STATE UNIVERSITY 26


FM-AA-CIA-15 Rev. 0 10-July-2020

Study Guide in CBMEC 101 – Operations Management (TQM) Module No. 1

LEARNING ACTIVITY 2

After the discussions you are task to read more on the topic and prepare for a quiz as to assess
your understanding of the topic.

SUMMARY

Total Quality Management works. But since the process of permeation of improvement
consciousness is delicate and time consuming, some organizations are predisposed to be better
TQM adopters.

Businesses that: Have a track record of quickly identifying external change, Craft a response plan
Implement the action steps, are more likely to taste success with TQM. In siloed and rigid
organizations employee buy-in is difficult to build and skepticism impedes progress.

REFERENCES

Camilar-Serrano, Angelita O., Total Quality Management. (Chapter 2: Strategic Dimensions of


Quality)
Evans, James R., Lindsay, William M. 2014. Total Quality Management, 9th Edition. (Chapter 3:
Customer Focus)
Fundamentals of Total Quality Management Process Analysis Improvement, Dahlgaard, Jens J. Et
al.

PANGASINAN STATE UNIVERSITY 27

You might also like