MGT 1 IM Week 11 To 13

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LEARNING GUIDE
Week No.: 11
TOPICS: TOTAL QUALITY MANAGEMENT
11.1. Quality
11.1.1. Quality Culture
11.1.2. The People Responsible for Quality
11.1.3. Short History of Quality
11.1.4. Business Case for Quality Management
11.1.5. Cost of Quality
11.2. Quality Control/Quality Assurance
11.2.1. Benefits of Quality Control/Quality Assurance
11.3. Inspection
11.4. Total Quality Management
11.5. Principle of TQM
11.6. Basic Concepts of TQM
11.7. Barriers in TQM Implementation
11.8. Role of Senior Management to TQM
11.9. Strategic Quality Planning
11.10. Customer Satisfaction
11.10.1. Customer
11.10.2. Types of Customers
11.10.3. Customer Complaints/Feedback
11.10.4.Tools for Collecting Customer Complaints
11.11. Employee Empowerment
11.11.1. General principles for Empowering People
11.12. Teams and Teamwork
11.12.1. Types of Team
11.12.2. Characteristics of a Successful Team
11.12.3. Elements of Effective Teamwork
11.12.4. Stages of Team development
11.13. Recognition and Award
11.13.1. Steve Smith’s 24 Ways to Recognize Team Efforts
11.14. Continuous Process Improvement (CPI)
11.14.1. Input/Output Process Model
11.15. 5S Housekeeping
11.15.1. Objectives of 5S
11.15.2. Factors in Implementing 5S
11.15.3. Benefits in Implementing 5S
11.16. Supplier Partnership
11.16.1. Principles of Customer/Supplier Relations
11.16.2. Supplier Partnering
11.16.2.1. Benefits of Supplier Partnering
11.16.3. Supplier Sourcing
11.17. TQM Tools and Techniques
11.17.1. Pareto Chart
11.17.2. Flow Chart
11.17.3. Cause and Effect Diagram
This module is a property of Technological University of the Philippines Visayas and intended for
EDUCATIONAL PURPOSES ONLY and is NOT FOR SALE NOR FOR REPRODUCTION.
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11.17.4. Histogram
11.17.5. Checksheets
11.17.6. Control Chart
11.18. Kaizen
11.19. Six Sigma
11.20. Quality Circles
EXPECTED COMPETENCIES
At the end of the lesson, you must have

1. defined quality,
2. defined quality control/quality assurance,
3. differentiated quality control from quality assurance,
4. defined inspection,
5. defined Total Quality Management,
6. explained the principle of TQM,
7. defined strategic planning,
8. defined customer satisfaction,
9. explained customer satisfaction,
10. described employee empowerment,
11. described teamwork,
12. described recognition and award,
13. explained continuous process improvement (CPI),
14. explained 5S/Housekeeping,
15. described supplier partnership,
16. described the different TQM tools and techniques,
17. used the different TQM tools and techniques,
18. described kaizen,
19. explained the Six Sigma concepts,
20. described quality circles, and
21. applied the concept of Quality Management Systems.
TECHNICAL SPECIFICATIONS/CONTENTS
11.1. QUALITY
Quality means degree of perfection. Quality is the ability of the product to be able to
satisfy the customers (end user).
Quality is about much more than describing a product or service as “good.” Quality
Management professionals see Quality as “Satisfying a set of explicitly or implicitly defined
inherent characteristics.”
Quality is not a program or a discipline. It doesn’t end when you have achieved a
particular goal. Quality needs to live in the organization as the Culture of Quality in which
every person experiences and understands the need for dedication to its values. Quality is a
continuous race to improvement with no finish line.
At a more general level, Quality is about doing the right thing for your customers, your
employees, your stakeholders, your business, and the environment in which we all operate.
From the level of the individual employee all the way up to the level of our planet, Quality is
about maximizing productivity and delighting customers while protecting our people and our
resources from the harm that results from shoddy processes and careless oversight.
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11.1.1 Culture of Quality
Quality specialists use the term Total Quality Management (TQM) to describe the
implementation of the fundamental principles of Quality at all levels of an organization. While
TQM has traditionally suggested wide adoption of process tools and analytical methods, the
definition has expanded to consider the wider cultural principles of the entire organization.
Culture of Quality is the extension of TQM to include both explicit efforts by people to improve
Quality and the underlying beliefs, philosophies, and behaviors on which those efforts rest. A
successful Culture of Quality is one in which the core Quality values of the organization, such
as a focus on responding to the needs of the customer and on the need for data-based decision-
making, and the basic assumptions of workers regarding the nature of human relationships and
their place in the world, such as the value of collaborative relationships among people with
common goals and the importance of developing long-term personal connections, are closely
integrated with one another. Commitments to core values are relatively easy to measure, since
they are overtly expressed and understood at all levels of the organization. Basic assumptions
often resist explicit analysis, even to the people who hold them, which can make engagement
at this level difficult.
When an organization adopts a Culture of Quality, the success of its implementation
can depend on whether core principles and underlying assumptions already reflect Quality or
can be effectively modified to embrace Quality through dedicated change management. The
further away an organization’s culture is from adhering to the principles of a Culture of Quality,
the more difficult and failure-prone the implementation is likely to be, particularly if a
commitment to core values clashes with underlying assumptions.
What are the typical attributes of an organization with an integrated Culture of Quality ?
In exemplary cultures, leadership demonstrates its commitment to Quality by providing the
necessary support to Quality initiatives and communicating about Quality values in clear and
unambiguous language. Employees encourage sharing ideas and cross-functional work, while
feeling that leadership trusts them to be pro-active and to apply their Quality and problem-
solving skills according to their best judgment. A Culture of Quality is therefore only possible
when leadership and workers share an aligned and comprehensive understanding of not only
the core values and processes they use and espouse, but their fundamentally basic assumptions
of the nature of work and human relationships on which those core values rest.
11.1.2. The People Responsible for Quality
W. Edwards Deming, one of the founders of the Quality movement in the United States,
said that “Quality is everyone’s responsibility.” Most people have interpreted this as meaning
that Quality is something that should be ubiquitous in an organization. In other words, Quality
should be sewn into the very fabric of an organization’s identity, not simply the responsibility
of an isolated and siloed “Quality Department.” Yet we should consider what author and
Quality expert Rafael Aguayo tells us was Deming’s in-person conclusion to his famous
injunction:
“Quality is everyone’s responsibility, but top management have more leverage in their
decisions than anyone else.”
The initiative for Quality must come from the top. While responsibility for
implementation and execution will lie with a Quality leader in a dedicated Quality department
with support from their counterparts in operations, engineering, sales, marketing, and IT, the
desire to implement Quality standards throughout an organization must come from the
leadership team. They must walk the talk for a Quality program to be successful. While there
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is certainly value in instilling the concept of Quality in every member of an organization,

without direct and explicit initiative and methods for implementing those ideas, another way
of saying “Quality is everyone’s responsibility” is “Quality is no one’s responsibility in
particular.” Everyone should strive for Quality, but defining how to do that in very specific
terms is something that can come only from the initiative of organizational leadership and be
entrusted to specific cross-functional stakeholders for implementation. This is further
reinforced in the latest ISO 9001:2015 standard, which shifts responsibility and accountability
from a Quality “designate” back to the leadership team where it belongs.
11.1.3. A Short History of Quality
The concept of Quality Management has its origins in the work of statistician Walter
Shewhart, who was conducting research on the analysis of industrial processes while working
at Bell Laboratories in the early 20th century. Shewhart realized manufacturing processes
produced data that he could measure and analyze to determine their conformity to ideal
standards of stability and control, and he could apply remedies that would bring any deviations
back into line. This revolutionary approach highlighted the advantage of process-centered
applications of Quality over older product-centered approaches. This concept is now referred
to as statistical quality control (SQC) and is the backbone of the initial exploration of Quality
in manufacturing.
In the 1940s, the Second World War prompted the American government to implement
Quality standards based on SQC for military vendors. This improved Quality in the short term,
but most civilian manufacturers failed to incorporate process improvement throughout their
organizations. After the war, engineers W. Edwards Deming and Joseph M. Juran worked as
consultants in Japan as Japanese industry worked to recover from the war and transform their
economy to focus on civilian production of goods and services. Deming and Juran worked with
Japanese manufacturers to create the concept of Total Quality, in which Quality extends
beyond the manufacturing process to all organizational processes and instills the values of
Quality in every worker. As a result of this Total Quality transformation, Japan became a
manufacturing powerhouse, vastly increasing its market share at the expense of American
manufacturers who had yet to recognize the value of Total Quality.
In the 1980s, American manufacturers and legislators began to recognize the crises of
poor Quality in American manufacturing. The American response, built on Deming’s and
Juran’s work in Japan, was Total Quality Management (TQM). The first ISO 9000 standard for
Quality appeared in 1987, and it continues to be the globally recognized standard for Quality
accreditation across many industries.
Since 2000, ISO 9000 has evolved to meet the needs of a changing marketplace.
Globalization and emerging technologies have expanded both the scope of Quality and the
tools used to meet Quality standards. New approaches, such as Six Sigma developed by
Motorola, have achieved remarkable levels of productivity and variation reduction to produce
goods and services that are free from defects. Quality is now seen as an approach that can be
applied to any organization, including services, government, healthcare, education, and even
nascent technology like Bitcoin and Blockchain.
10.1.4. Business Case for Quality Management
Implementing Quality Management and investing in a QMS requires the initiative of

executive sponsorship in any organization. Leadership typically doesn’t spend money without
a strong business case that highlights either the costs of not investing (COPQ – cost of poor
quality) or the market advantage that can be gained by investing. Given the reality that the
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benefits of Quality Management are difficult to quantify in direct terms and have longer
payback periods, executives with no experience in Quality Management often do not see the
value of investing in it compared to investments in sales and engineering, where the direct
benefits are easier to calculate.
The reality is that the typical catalyst for garnering executive sponsorship for Quality
is often a negative compelling event, such as a recall or significant loss of market share. While
negative compelling events can indeed be powerful catalysts for change and help focus
executive attention on Quality Management, it may also come at tremendous cost: lives may
be lost, ecosystems may be destroyed, and the organization may suffer significant brand and
financial damage as these external failures increase costs by an order of magnitude.
Gaining executive support starts with presenting a strong business case supported by
qualitative and quantitative data that tell the story of positive compelling events and financial
return such as reduced waste, increased efficiency, and increased customer satisfaction. By
making a strong case for proactively investing in Quality, organizations can avoid situations in
which they only see value in Quality by responding to negative events that have a destructive
and irreversible impact on the organization, the marketplace, and the environment.
11.1.5. Cost of Quality
Cost of Quality (COQ) is a way of measuring the costs associated with ensuring that a
Culture of Quality thrives in an organization, as well as the costs associated with Quality
failures. There are four types of Quality-related costs:
Prevention costs. These planned costs are the result of designing and implementing a
QMS and preventing Quality problems from arising. These costs include Quality planning,
training, and Quality assurance.
Appraisal costs. These costs are the result of measuring the effectiveness of a Quality
Management System and apply to both manufacturers and the supply chain. These costs
include verification, Quality audits, and supplier assessment.
Internal failure costs. These costs arise when the manufacturer discovers Quality
failures before products or services are delivered to customers. They include waste from poor
processes, excessive scrap, rework to correct errors, and the activity required to diagnose the
cause of Quality failures.
External failure costs. These are the most expensive costs and are usually apparent only
after the products or services have reached the customer. These costs include repairs, warranty
claims, returns, and dealing with customer complaints.
The Cost of Poor Quality (COPQ) and its consequences can be difficult for
organizations to measure, and it can be a struggle to convince executive stakeholders that
Quality improvement projects to mitigate COPQ have real value and are not simply cost
centers. The primary consequences of COPQ are the most obvious. Costs associated with
process failures inside the organization include:
Excess scrap and waste material created by inefficient manufacturing processes,
Rework on defective or damaged products before they ship to market, and,
Retesting and analyzing processes and procedures to determine point of failure. If poor
Quality is not caught before products or services make their way to end customers, the external
costs can include those associated with:
Lawsuits,
Recalls,
Warranties,
Complaints,
Returns,
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Repairs, and,
Field support.
The traditional Cost of Poor Quality has usually been assumed to be between 4 percent
and 5 percent of an organization’s annual revenue. In other words, a business with P100 million
in annual revenue is throwing away between P4 million and P5 million by failing to mitigate
the impact of preventable process failures.
Yet, like an iceberg, the visible surface of the problem masks something far deeper.
Hidden costs associated with COPQ can include:
Decreased employee engagement,
Higher employee turnover and attrition,
Employees addressing Quality failures instead of focusing on Quality improvement
through innovation,
Overtime costs,
Machine downtime,
Long-term customer dissatisfaction,
Brand damage,
Poor inventory turnover, and,
Decreased customer lifetime value.
When we account for these hidden and long-term costs, COPQ is more like 10 percent
to 25 percent of an organization’s annual revenue. To put that into perspective again, that would
mean a company with P10 million in annual revenue is throwing away P1 million to P2.5
million every year on failures that are predictable and preventable. These costs are often passed
on to customers in the form of a higher price tag, which leads to additional customer
dissatisfaction and brand damage. Investing in Quality is therefore the most effective way of
reducing these staggering costs.
11.2. QUALITY CONTROL/QUALITY ASSURANCE (QA/QC)
Quality Control (QC) is a system of routine technical activities, to measure and control
the quality of the inventory as it is being developed. The QC system is designed to:
(i) Provide routine and consistent checks to ensure data integrity, correctness, and
completeness;
(ii) Identify and address errors and omissions;
(iii) Document and archive inventory material and record all QC activities.
QC activities include general methods such as accuracy checks on data acquisition and
calculations and the use of approved standardized procedures for emission calculations,
measurements, estimating uncertainties, archiving information and reporting. Higher tier QC
activities include technical reviews of source categories, activity and emission factor data, and
methods.
Quality Assurance (QA) activities include a planned system of review procedures
conducted by personnel not directly involved in the inventory compilation/development
process. Reviews, preferably by independent third parties, should be performed upon a
finalized inventory following the implementation of QC procedures. Reviews verify that data
quality objectives were met, ensure that the inventory represents the best possible estimates of
emissions and sinks given the current state of scientific knowledge and data available, and
support the effectiveness of the QC programme.
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Figure 11.1. Quality Assurance vs. Quality Control
For example, in a pizza processing plant accepting made to order pizza. A customer put
an order of a special a pizza. The customer wants the pizza with the following characteristics:
1. Crispy Crust
Pizza crust should be crispy on the outside and practically melt in the mouth shortly
after you bite into it. A crispness-to-softness balance. Pizza crust should also have a
subtle yeasty flavor to it.
2. Luxurious Cheese
The cheese stretches out between each bite. The cheese on an authentic slice of pizza
should be perfectly melted and stringy without saturating the crust with excess moisture.
3. Savory Sauce
Pizza sauce should consist of tomatoes seasoned with garlic, basil, and salt, creating
that wonderfully robust yet never overwhelming flavor. The sauce should be evenly distributed
the your pizza slice.
4. Carefully Placed Toppings
The slices of authentic pizza with even distribution of toppings of pepperonis,
mushrooms, and olives, each slice should clearly showcase all three of these meats and veggies.
After receiving the instruction of the special pizza, the manager calls on the cook and
the crews. The manager discusses the pizza as per required by the customer to the crew.
After receiving the instructions, the crews start to work on the pizza. The crews should
see to it that the pizza should be as per the customer required. That is Quality Control.
Once the pizza is done, the manager will check the pizza produced, checking all the
requirements specified by the customer. The manager is doing the Quality Assurance.
It is not necessarily the manager who will do the quality assurance activity. It could be
anybody assigned to do the quality assurance job.
If the customer is satisfied with the product, meaning the quality control and quality
assurance system function well. However, if the customer is not satisfied with the pizza,
meaning the quality assurance and quality control is at a total wreck.
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Figure 11.2. Quality Assurance
Figure 11.3. Quality Control
11.2.1. Benefits of Quality Assurance/Quality Control
The following are a few benefits of these processes:

They provide you with high-quality output and eliminate waste.
They increase the efficiency of operations.
They provide customer satisfaction, which helps your brand and helps in growing your
business.
Less rework and after-sale support are required, which will help you save a lot of
money.
They encourage a high level of confidence and a motivated team.
Quality assurance and quality control are closely related, and they have the same
objective, i.e., to deliver a defect-free product.
Both processes are an integral part of a quality management plan and failure to apply
either of them will result in a low quality product.
The quality assurance and quality control processes ensure that a product is defect-free
and conforms to requirements. Both processes have the same purpose but, the approach is
different. Quality assurance is a process-based and quality control is a product-based. Quality
assurance designs a process so that the product created by this process is defect free, while
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quality control checks the product when producing it to prevent a defective product from
reaching the market.
These processes play essential roles in the success of the project. Their effectiveness
can only be achieved if they are well understood by the organization and the team performing
the job.
11.3. INSPECTION
Inspection is an art of checking materials, parts, components or products at various

stages in manufacturing. It is the process of sorting out defective items from the good items.
Inspection is mainly responsibility of a person called the inspector. His duties are:
i. The interpretation of a specification.
ii. Measurement of the product.
iii. Comparison of above two
Difference types of inspection:

1. Floor Inspection: Here inspector walks around on the shop floor from one machine
to another to check samples of every worker.
2. Fixed Inspection: Here inspector sits in one separate inspection place and materials
or products to be checked are moved to this place for inspection
3. Key point inspection: A key point is a stage at which either product requires an
expensive operation or it can be reworked. Hence product is continuously inspected at key
point to avoid rejection.
4. Final Inspection: It is done on final product; either destructive or non-destructive
inspection or test is conducted to maintain the quality as per customer requirement.
5. Tool Inspection: Tools, fixtures, jigs and gauges are inspected before production to
avoid defects.
6. Sample inspection: Certain percentage from a lot is inspected and entire lot is
judged.
7. First Piece Inspection: First piece of the production is inspected is found any
deviations the machine setting are adjusted and corrective actions are taken.
Advantages of Inspection:
1. Finds the error in time and prevents the spoilage of large amount of work
2. Quality of production can be improved
3. Sales can be improved
4. Wastages can be reduced
5. Rework can be avoided
6. Improver relationship between employees and employer
Disadvantages of Inspection:
1. Skilled inspectors are required
2. Overhead cost increases
3. There may be conflict between the inspector and workers
4. Unskilled inspector results in production delay
11.4. TOTAL QUALITY MANAGEMENT (TQM)
Total quality management (TQM) has evolved over four stages: quality inspection,
quality control, quality assurance, and TQM (Dahlgaard, Kristensen, and Kanji, 2002).
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TQM can be defined as “an integrated management philosophy and set of practices that
emphasize continuous improvement, meeting customer requirements, reducing rework, long-
range thinking, increasing employee involvement and teamwork, process redesign, competitive
benchmarking, team-based problem solving, continuous measurement of results and closer
relationships with suppliers” (Powell, 1995, p. 16).
This philosophy can be implemented in any type of organization, generating cost
reduction, more satisfied customers and employees, and improvements in products, services,
and financial performance. This last point is controversial since TQM strictly depends on
executive commitment, an open organization, and employee empowerment.
Despite the fact that its main scholars were American and European (e.g., Deming,
Juran, Crosby), TQM was first developed and subsequently widespread in Japan in 1949 when
the Union of Japanese Scientists and Engineers (JUSE) created a committee to improve
industry productivity following World War II. After numerous and significant results obtained
in Japanese manufacturing and nonmanufacturing firms, in around 1980, TQM started
spreading in the US companies such as Ford, Xerox, and Motorola. Based on their widely
publicized success, other large and medium manufacturers, first in the United States and
thereafter in Europe, adopted the TQM philosophy and methods.
Briefly, a firm adopting TQM organizes production and business processes in such a
way as to identify and eliminate problems or sources of variations that cause products to deviate
from customer needs. To achieve this aim, managers often follow a simple method known as
the Deming wheel or Plan, Do, Check, Act (PDCA) cycle (Figure 11.4.). Business processes
or activities are positioned in a continuous feedback loop so that employees involved in the
analysis can identify causes and solutions to change or improve those parts of the processes
that require it.
Figure 11.4. PDCA Cycle
Plan-Do-Check-Act (PDCA) can be defined as frame work that provides a proper

approach to solve problems and continuous improvement. It is a four-step management method
used in business for control, improvement of process and product. It is also known as Deming
circle/cycle/wheel, control circle/cycle, plan-do-study-act (PDSA).
1] Plan:
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- Define precise goals, desired outcomes and related measures of success

- “Go slow to go fast”: spend quality time to identify all risk
- When possible start on a small scale to test possible effects
- Recognize an opportunity and plan to change
2] Do:
- Implement the plan, execute the process, make the product.
- Identify road blockers and define alternative solutions
- Communicate the report to all stakeholders
- Collect the data and analyze in the following “Check” and “Act” steps
3] Check:
- Study the actual results (collected in Do) and compare with expected results.
- Identify the gaps and deviation
- Identify the root cause of deviation
4] Act:
- Use the results of the analysis from the “check” to define corrective actions.
- Share results with all stakeholders to close the cycle before starting a new analysis.
Aim and Objectives:

- To understand the origins of plan/do/check/act (PDCA)
- To define the 12 steps PDCA approach
- To understand when to apply PDCA
When to Use PDCA:

1. As a model for continuous improvement
2. When starting a new improvement project
3. When developing a new process, product or service
4. When defining a repetitive work process
5. When planning data collection and analysis in order to verify the root causes
6. When implementing any change
11.5. PRINCIPLES OF TQM
Deming offered 14 key principles for management for transforming business

effectiveness.
1. Create constancy of purpose toward improvement of product and service, with the
aim to become competitive and stay in business, and to provide jobs.
2. Adopt the new philosophy. We are in a new economic age. Western management
must awaken to the challenge, learn their responsibilities and take on leadership for change.
3. Cease dependence on inspection to achieve quality. Eliminate the need for inspection
on a mass basis by building quality into the product in the first place.
4. End the practice of awarding business on the basis of price tag. Instead, minimize
total cost. Move toward a single supplier for any one item, on a long-term relationship of loyalty
and trust.
5. Improve constantly and forever the system of production and service, to improve
quality and productivity, and thus constantly decrease cost.
6. Institute training on the job.
7. Institute leadership — the aim of supervision should be to help people and machines
and gadgets to do a better job. Supervision of management is in need of overhaul, as well as
supervision of production workers.
8. Drive out fear, so that everyone may work effectively for the company.
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9. Break down barriers between departments. People in research, design, sales and
production must work as a team, to foresee problems of production and use that may be
encountered with the product or service.
10. Eliminate slogans, exhortations and targets for the work force asking for zero
defects and new levels of productivity. Such exhortations only create adversarial relationships,
as the bulk of the causes of low quality and low productivity belong to the system and thus lie
beyond the power of the work force.
11. a. Eliminate work standards (quotas) on the factory floor. Substitute leadership.
b. Eliminate management by objective. Eliminate management by numbers,
numerical goals. Substitute workmanship.
12. a. Remove barriers that rob the hourly worker of his right to pride of workmanship.
The responsibility of supervisors must be changed from sheer numbers to quality.
b. Remove barriers that rob people in management and in engineering of their right
to pride of workmanship. This means, inter alia, abolishment of the annual or merit rating and
of management by objective (See CH. 3 of “Out of the Crisis”).
13. Institute a vigorous program of education and self-improvement.
14. Put everyone in the company to work to accomplish the transformation. The
transformation is everyone’s work.
11.6. BASIC CONCEPTS OF TQM
1. Management Involvement – Participate in quality program, develop quality council,

direct participation
2. Focus on customer – who is the customer – internal and external, voice of the
customer, do it right first time and every time.
3. Involvement and utilization of entire work force – All levels of management
4. Continuous improvement – Quality never stops, placing orders, bill errors, delivery,
minimize wastage and scrap etc.
5. Treating suppliers as partners – no business exists without suppliers. 6. Performance
measures – creating accountability in all levels
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Figure 11.5. TQM Framework
11.7. BARRIERS IN TQM IMPLEMENTATION
Many organizations, especially small ones with niche products, are comfortable with
their current state. They are satisfied with their current level of performance and profits.
Organizations with this culture will see little need for TQM until they begin to lose market
share. Awareness comes about when (a) the organization loses market share or (b) TQM is
mandated by the customer, or (c) management realizes that TQM is a better way to run a
business and compete in domestic and world markets.
Once an organization embarks on TQM, the following are some of the major obstacles
encountered in implementation:
• Lack of management commitment: Management does not allocate sufficient time and
resources for TQM implementation. The purpose is not clearly, consistently communicated to
all personnel. Management’s compensation is not linked to quality goals such as failure costs,
customer complaints, and cycle time reduction.
• Inability to change organizational culture: Even individuals resist change; changing
an organization’s culture is much more difficult and may require as much as 5 years or more.
Exhortations, speeches, slogans are effective only in the short run.
• Improper planning: Absence of two-way communication of ideas during the
development of the plan and its implementation.
• Lack of continuous training and education.
• Inadequate use of empowerment and teamwork.
• Lack of employee involvement.
• Non-cooperation of first-line managers and middle management.
• Lack of clarity in vision.
• Emphasis on short-term results.
• Setting of unmanageable, unrealistic goals.
• Bureaucratic system.
• TQM is considered as a quick-fix solution to current problems.
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• Treating suppliers as adversaries to be manipulated, taken advantage of Adversarial

relationship between workers/unions and management. Motivating employees through fear of
punishment.
• Failure to continually improve. Tendency to sit back and rest on one’s laurels. Rigidly
sticking to one ‘success formula’. Lack of access to data and results. Paying inadequate
attention to internal and external customers. Ineffective measurement techniques for key
characteristics of the organization. Inability to understand the changing needs and expectations
of customers. Absence of effective feedback mechanism.
11.8. ROLE OF SENIOR MANAGEMENT
1. Study and investigate TQM concepts and issues.

2. Set clear quality policies and provide challenging tasks.
3. Establish customer satisfaction as a long term goal.
4. To become coaches and cheer leaders for encouraging and supporting the managers
during transition phase of the transformation.
5. To stimulate employees to be involved.
6. To attend TQM training programs.
7. To up hold norms and issues.
8. To create a basic of trust, respect and open communication which ensures individual
participation and continuous improvement.
9. To monitor whether quality improvement programs are conducted as planned.
11.9. STRATEGIC QUALITY PLANNING
It sets the long term direction of the organization in which it wants to proceed in future.
Can be defined "As the process of deciding on objectives of the organization, on changes on
this objective, on the resource used to obtain these objectives and on the policies that are to
govern the acquisition use and disposition of these resources"
Figure 11.6. Strategic Planning Cycle
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11.10. CUSTOMER SATISFACTION
The Customer is the King - Emphasized by Today's Buyers Market. TQM's Purpose is
meeting or exceeding customer expectations, so that the customers are delighted. The customer
satisfactions must be the primary goal of any organization. Customer satisfaction model
Teboul‘s Model of customer satisfaction as shown in figure 11.7.
From the above diagram it is understood that the company should strive for increasing
the intersection portion i.e. Customer Satisfaction.
11.10.1. Customers
Are the most important people in the business. They are not dependent on the
organization, but the organization depends on them. They are not an interruption to work but
are the purpose of it. They are doing a favor when they seek business and not vice-versa. They
are a part of business, not outsiders and they are life blood of the business
They are those people who come with their needs and job. They deserve the most courteous
and attentive treatment.
11.10.2. Types of Customers
Internal Customer: The customer inside the company are called internal customers
External Customers: An external customer is the one who used the product or service
or who purchase the products or service or who influences the sale of the product or service.
11.10.3. Customer Complaints (Customer Feedback)
Customer feedback must be continuously solicited and monitored to reduce the

dissatisfied customers as much as possible.
Customer Feedback or Customer Complaint is Required:

1. To discover customer dissatisfaction
2. To identify customer‘s needs
3. To discover relative priorities of quality
4. To compare performance with the competition
5. To determine opportunities, for improvement
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11.10.4. Tools Used For Collecting Customer Complaints
Comment card - Low cost method, usually attached to warranty card

Questionnaire - Popular tool, costly and time consuming - by mail or telephone
preferably multiple choice questions or a point rating system (1 to 5) or (1 to 10)
Customer Focus groups - Meeting by a representative of the company with the group
of customers. Imprint analysis is an emerging technique to obtain intrinsic feelings using
customer meetings, word associations, discussion, relaxation techniques etc.
Phone - Toll free Telephone numbers
Customer visits - Visit customer's place of business.
Report cards - Usually, send to customer on a quarterly basis.
The internet and computer - It includes newsgroups, electronic bulletin board mailing
lists,
Employee feedback.
Mass Customization - Capturing the voice of customers using data of what customer
want instead of what customer is thinking about buying and manufacturing exact what they
want.
11.11. EMPLOYEE EMPOWERMENT
It is an environment in which people have the ability, the confidence and the
commitment to take his responsibility and ownership to improve the process and initiate the
necessary steps to satisfy customer requirements within well-defined boundaries in order to
achieve organizational values and goals.
Job Enrichment: Is expanding content of the Job.
Job Empowerment: Is expanding the context of the job.
11.11.1. General Principles or Characteristics For Empowering Employees
1. Tell people what their responsibilities are.

2. Given the authority equal to the responsibility assigned to them.
3. Set standards of excellence.
4. Give them knowledge information and feed back.
5. Trust them and treat them with dignity and respect.
11.11.2. Conditions To Create The Empowered Environment
1. Every one should under stand the need to change

2. The system need to change to new paradigm.
3. The organization must provide information, education, and skill to its employees.
11.12. TEAMS AND TEAM WORKS
A team can be defined as a group of people working together to achieve common

objectives or goals. Team work is the cumulative actions of the team during which each
member of the team subordinates his individual interest and opinions for the fulfilling of
objectives of the group.
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11.12.1. Types of Teams
Process improvement team: Involved in improvement of sub processes or processes.

Usually has 6-10 members. Disbanded when the objective is reached. May include the local
supplied and customer depending on the location
Cross functional teams: 6-10 members temporary team. Members are Top management
level from various functional areas of management. Discuss complex problems and break down
into smaller parts to refer it to various departmental teams for further solution.
Natural work teams: Not voluntary and the total work unit is part of the team. Manager
also a part of the team and the management selects the projects to be improved. Managers must
also ensure that the entire team is comfortable with each other.
Self directed / self managed work team: Extension of natural work teams but here the
group of individuals is empowered not only to do work but manage it. No manger will present
but a coordinator (Which will be normally rotated among members) will be appointed.
Additional responsibilities of the team hiring/ dismissal, performance evaluation, customer
relations, supplier relations, recognition/rewards and training
.
11.12.2. Characteristics of Successful Teams
1. Sponsor: In order to have effective liaison with quality council, there should be
sponsor. The sponsor is a person from the quality council, he is to provide support to the
organization.
2. Team Charter: A team charter is a document that defines the team‘s mission
boundaries, the background of the problem, the team‘s authority and duties and resources. It
also identifies the members and their assigned roles – leader, recorder, time keeper and
facilitator.
3. Team Composition: Not exceeding 10 members except natural work team and self
managed teams.
4. Training: The team members should be trained in the problem solving techniques
team dynamics and communication skills
5. Ground Rules: The team should have separate rules of operation and conduct. Ground
rules should be discussed with the members, whenever needed it should be reviewed and
revised
6. Clear objectives, Accountability : Periodic status report should be submitted to
quality council for review.
7. Well defined decision procedure, Resources: Adequate information should be
provided
8. Trust by the management, Effective problems solving: Not by hunches or quick fires
9. Open communication, Appropriate Leadership, Balanced participation and
Cohesiveness
11.12.3. Elements of Effective Team Work
Regular scheduling with a fixed time limit, purpose, role and responsibilities, activities,
decision, results and recognition.
Team Management Wheel:

To make a lean more effective a team management wheel has been evolved. The
activities are advising, innovating, promoting, developing, organization, producing, inspecting,
maintaining and linking. The roles of wheel are advisor, explore, organizer and controller.
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11.12.4. Stages of Team Development
• Forming stage- Initial stage with only group of individuals and no team work. Team
purpose, roles are created.
• Storming Stage -Initial agreement roles are challenged. Hostilities, emerge which may
be resolved
• Norming Stage-Formal informal relations get established.
• Performing Stage -Team operates in a successful manner with trust, openness, healthy
conflict and decisiveness among the members.
• Maintenance stage – Functioning should not deteriorate with time Evaluating Stage –
Evaluating team performance.
11.13. RECOGNITION AND REWARD
Recognition is a process whereby management shows acknowledgement (Verbal or

written) of an employee outstanding performance. Recognition is a form of employee positive
motivation.
Reward is a tangible one such as increased salaries, commission, cash bonus, gain
sharing etc., to promote desirable behavior. It can be even theatre tickets, dinner for two, a
small cash awards, etc.
The employees are recognized to improve their morale, show the company's
appreciation for Better Performance, create satisfied and motivated workplace and stimulate
creative efforts.
Table 11.1. Intrinsic Vs. Extrinsic Rewards
INTRINSIC REWARDS EXTRINSIC REWARDS
Related to feeling of accomplishment or Related to pay or compensation issues
self-worth
1. Non monetary forms of recognition to 1. Profit sharing
acknowledge achievement of quality 2. Gain sharing
improvement goals 3. Employment security
2. Celebrations to acknowledge 4. Compensation time
achievement 5. Individual based performance systems
of quality improvement goals 6. Quality based performance appraisals
3. Regular expression of appreciation by
managers and leaders to employees to
acknowledge achievement of quality
improvement goals
4. 360o performance appraisals feedback
from co-workers, subordinates or customers
is incorporated into performance appraisal
5. Formal suggestion system available for
individuals to make quality improvement
suggestion
6. Developmental based performance
appraisals
7. Quality based promotion
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11.13.1. Steve Smith’s Twenty Different Ways to Recognize the Employees
• Send thank letter whenever possible

• Develop behind the scenes award
• Create the best ideas of the year booklet
• Feature the quality team of the month and put their picture in prominent place
• Honor peers by recognizing them
• Allow people to attend meetings in your name when you are not available
• Involve teams with external customers and suppliers by visiting them
• Invite a team for coffee or lunch whenever possible
• Create a visibility by displaying posters, pictures, to thank the contributions of
employee
• Credit the team to higher authorities when their ideas are accepted
• Take interest in employee‘s development
• Get the team picture in company newspaper
• Mention the ideas of others during your meetings, so that they are recognized
• Write a letter of praise to contributed team member and copy to boss
• Ask people to help you with the project which is difficult but challenging
• Send a team to special seminars, workshops to cover topics they are really interested
in
• Ask your boss to send a letter of acknowledgement and thanks
• Honor outstanding contribution with awards
• Have a stock of small gifts to give to people on the spot whom you catch doing things
right
• Promote or nominate for promotion, those people who contribute most
11.14. CONTINUOUS PROCESS IMPROVEMENT (CPI)
• TQM has been defined as a philosophy based on quest for progress and continual
improvement in the areas of cost, reliability, quality, innovation, efficiency and business
effectiveness
• It is a continuous learning process which never stops and is cyclic and iterative
• To do CPI, we have different approaches such as Juran Trilogy, PDSA cycle, Kaizen
and 5S concept.
11.14.1. Input / Output Process Model
The process refers to business and production activities of an organization. Example

Purchasing, Engineering, Marketing and Accounting:
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Figure 11.8. Input/Output Process Model
11.15. 5S HOUSEKEEPING
This is a house keeping technique used to establish and maintain a productive and
quality environment in an organization. This method is invented in Japan which will give safer,
more efficient and more productive operation results in boosting of morale of workers, job
involvement and satisfaction and ownership of their responsibilities.
Table 11.2. 5S System
Figure 11.9. Relationships Among Various 5S
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Sorting (Seiri)
To avoid unnecessary materials, tools, machineries, documents etc. in a work place.
Keep only required items and keeping them at easily accessible place.
Straightening (Seiton):
Everything should be in its place and there should be place for everything.
The place of each items should be labeled clearly. Tools are kept close to workplace.
Shine (Seiso):
Keep the workplace tidy, clean and organized.
At the end of work everything is restored to its place and ensured that everything is
where it belongs.
Standardizing (Seiketso):
It is the standardizing of work practice.
All employees doing same job should be able to work in any station.
They should be able to use same tools that are in the same location
in every work station.
Everyone should know their responsibility and should follow first 3-
‘S’
Sustain (Skitsuke):
Every workers and managers has to follow rules and procedure in the work place. Once
previous 4-‘S’ have established maintain the focus.
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When issue arise, suggestion for improvement are done, new ways of working tools
and new changes as required are carried out.
11.15.1. Objectives of 5s
• Create a neat and clean work place

• Create systemize day to day working
• Improve work efficiency
• Standardize work practice
• Improve work discipline
• Improve the quality of work and products
11.15.2. Factors in Implementing 5S
Participation by all - Should be understood and practiced by all employees

Top management commitment – CEO and Senior management team need personally
commitment practice and supervise the program
Should be self sustaining – Banners, slogan posters and new tutors should be fully
utilized to draw attention of every one
Review the program – Every month group of people from different areas of
responsibilities plan and evaluate each zone
11.15.3. Benefits in Implementing 5S
• Work place becomes proud place to work

• Results in good image and- generates business
• Operations become easier and safer in work place
• Disciplined people
• Improve productivity' and morality
• Better quality awareness
• More usable space
• Less Material handling time
• Less production cost
• Preventive maintenance
• High employee involvement
• Less accidents
• More time to improvement.
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11.16. SUPPLIER PARTNERSHIP
A commitment to continuous quality improvement cannot be translated into reality

without treating supplier as partner
11.16.1. Principles of Customer / Supplier Relation
• Both the customer and the supplier are fully responsible for the control quality
• Both the customer and the supplier should be independent of each other and respect
each other‘s independence
• The customer is responsible for providing the supplier with clear and sufficient
requirements so that the supplier can know precisely what to produce
• Both the customer and the supplier should enter into an non adversarial contract with
respect to quality, quality, price, delivery method and terms of payments
• The supplier is responsible for providing the quality that will satisfy the customer and
submitting necessary data upon the customer‘s request
• Both the customer and the supplier should decide the methods to evaluate the quality
of the product or service to the satisfaction of both parties
• Both the customer and the supplier should establish in the contract the method by
which they can reach an amicable settlement of any disputes that may arise
• Both the customer and the supplier should continually exchange information,
sometimes using multifunctional teams, in order to improve the product or service quality
• Both the customer and the supplier should perform business activities such as
procurement, production and inventory planning, clerical work and system so that an amicable
and satisfactory relationship is maintained
• When dealing with business transactions both the customer and the supplier should
always have the best interest of the end user in mind.
11.16.2. Supplier Partnering
It is defined as a continuing relationship, between a buying firm and supplying firm,

involving a commitment over an extended time period, an exchange of information, and
acknowledgement of the risks end rewards of the relationship.
11.16.2.1. Benefits of Supplier Partnering
Improved Quality Reduced cost Increased Productivity Increased efficiency Increased

market share Increased opportunity for innovation Continuous improvement of
products/services. .
JAPANES REVIEW OF PARTNERING
The Japanese partnering concept is KELRESTU – developing long term relationships
with a few key suppliers rather than having short term relationship with
many suppliers.
Key elements to Partnering Long term Commitment Trust Shared vision - To satisfy
the end users is the common goal of both supplier and customer.
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11.16.3. Supplier Sourcing
Sole sourcing - only one supplier for the entire organization. This may be forced. to
happen because of patent, technical specification, raw material location, monopolistic supplier.
Multiple sourcing - For a single item having two or more supplier, resulting in better
quality, better service at lower cost.
11.17. TQM TTOOLS AND TECHNIQUES
11.17.1. Pareto Chart
Italian economist Vilfredo Pareto shows on a bar graph which factors are more
significant. This method helps to find the vital few contributing maximum impact.
Purpose: The purpose of the Pareto chart is to prioritize problems. No company has
enough resources to tackle every problem, so they must prioritize.
Pareto Principle: The Pareto concept was developed by the describing the frequency
distribution of any given characteristic of a population. Also called the 20-80 rule, he
determined that a small percentage of any given group (20%) account for a high amount of a
certain characteristic (80%).
This concept is called ’80-20 Rule’ and being used in many areas.
The logic behind Pareto chart is, the most of the quality problems(80%) are results of
only a few causes(20%).
The trick is to identify these causes i.e. based on percentage rejection and what are the
causes of rejection.
Number of defects results from different causes such as less skilled workers, wrong
operation, wrong assembly etc. are plotted in a graph.
From this analysis it is found that 80% of problems come from 20% of causes.
Therefore effort is aimed only to correct 20% of causes, hence the 80% of problems are
solved automatically.
Figure 11.10. A Pareto Chart
Example Pareto Chart:
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11.17.2. Flow Chart
A technique that separates data gathered from a variety of sources so that patterns can
be seen (some lists replace "stratification" with or "run chart").
Purpose: Flow Charts provide a visual illustration of the sequence of operations
required to complete a task.
A picture of the steps the process undergoes to complete it's task. Every process will
require input(s) to complete it's task, and will provide output(s) when the task is completed.
Flow charts can be drawn in many styles. Flow charts can be used to describe a single process,
parts of a process, or a set of processes. There is no right or wrong way to draw a flow chart.
The true test of a flow chart is how well those who create and use it can understand it.
Figure 11.11. Symbols Used in Flow Charts
Activity 11.1: Using the symbols given in figure 11.11, modify the process below:
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11.17.3. Cause-and-Effect Diagrams/Fishbone Diagram/Ishikawa Diagram
1943 by Mr. Kaoru Ishikawa at the University of Tokyo

Purpose: One important part of process improvement is continuously striving to obtain
more information about the process and it's output. Cause-and-effect diagrams allow us to do
not just that, but also can lead us to the root cause, or causes, of problems.
Figure 11.12. Fishbone Diagrams
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Example:
They are often called fish bone because they look like bone of a fish. The “head” of
the fish is the quality issue or quality problem. Example: Customer complaint, product over
size, product under size, damage, defects etc. The lines connecting to the “head” are the
possible causes of the problem.
The possible causes can be listed as:
Procedure:
1) “Brain storm” all the possible causes (group discussion)
2) Ask “why” to all the listed causes
3) The ideas or answers to “why” are listed in sub branches.
4) Continue to ask “why” until the root cause is identified.
5) Once the root cause is identified, corrective actions are taken to solve the quality
issues (problems)
11.17. 4. Histograms or Bar Graphs
Purpose: To determine the spread or variation of a set of data points in a graphical

form. It is always a desire to produce things that are equal to their design values.
Histograms: A histogram is a tool for summarizing, analyzing, and displaying data. It
provides the user with a graphical representation of the amount of variation found in a set of
data.
Histograms are the most common used graph to show frequency distribution.
lly analyzed, whether a process meet the customers

requirement.
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ing normally
Figure 11.13. A Histogram
Example:
11.17.5. Check Sheets or Defect Concentration Diagram
A check sheet is a structured, prepared form for collecting and analyzing data. This is
a generic data collection and analysis tool that can be adapted for a wide variety of purposes
and is considered one of the basic quality tools.
WHEN TO USE A CHECK SHEET
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When data can be observed and collected repeatedly by the same person or at the same
location
When collecting data on the frequency or patterns of events, problems, defects, defect location,
defect causes, or similar issues
When collecting data from a production process
CHECK SHEET PROCEDURE

Decide what event or problem will be observed. Develop operational definitions.
Decide when data will be collected and for how long.
Design the form. Set it up so that data can be recorded simply by making check marks
or X's or similar symbols and so that data do not have to be recopied for analysis.
Label all spaces on the form.
Test the check sheet for a short trial period to be sure it collects the appropriate data
and is easy to use.
Each time the targeted event or problem occurs, record data on the check sheet.
CHECK SHEET EXAMPLE

The figure below shows a check sheet used to collect data on telephone interruptions.
The tick marks were added as data was collected over several weeks.
Example:
Activity No. 11.2. Track 10 defects every day for 7days then make a checksheet.
11.17.6. Control Charts
The control chart is a graph used to study how a process changes over time.
control chart always has a central line for the average, upper control limit line for
upper limit and lower control limit line for lower limit.
ve to conclude whether the process

variables are in control or out of control.
to carry a stable process.
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Figure 11.14. A Control Chart
11.18. KAIZEN
Kaizen is small incremental changes made for improving productivity and minimizing
the wastage.
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11.19. SIX SIGMA
Define – Measure – Analyze – Improvement – Control.

Six sigma is a set of practices designed to improve manufacturing process and eliminate
defects. In six sigma a defect is defined as any process output that does not need customer
specification. Six sigma level indicates 99.9966% products are defects free and only 0.00034%
products are defective.
Table 11.3. Six Sigma Table
Figure 11.15. Six Sigma Principle
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Figure 11.16. Concept of Six Sigma Using Normal Distribution Curve
Steps of six-sigma:
Benefits of six-sigma
Rapid response to changing needs of customers
Types of six-sigma certification or belts:
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Figure 11.17. LEAN Six Sigma Organizational Structure
11.20 QUALITY CIRCLES
Quality circles were originally associated with Japanese management and

manufacturing techniques. The introduction of quality circles in Japan in the postwar years was
inspired by the lectures of W. Edwards Deming (1900—1993), a statistician for the U.S.
government. Deming based his proposals on the experience of U.S. firms operating under
wartime industrial standards. Noting that American management had typically given line
managers and engineers about 85 percent of the responsibility for quality control and line
workers only about 15 percent, Deming argued that these shares should be reversed. He
suggested redesigning production processes to account more fully for quality control, and
continuously educating all employees in a firm—from the top down—in quality control
techniques and statistical control technologies. Quality circles were the means by which this
continuous education was to take place for production workers.
Deming predicted that if Japanese firms adopted the system of quality controls he
advocated, nations around the world would be imposing import quotas on Japanese products
within five years. His prediction was vindicated. Deming's ideas became very influential in
Japan, and he received several prestigious awards for his contributions to the Japanese
economy.
The principles of Deming's quality circles simply moved quality control to an earlier
position in the production process. Rather than relying upon post-production inspections to
catch errors and defects, quality circles attempted to prevent defects from occurring in the first
place. As an added bonus, machine downtime and scrap materials that formerly occurred due
to product defects were minimized. Deming's idea that improving quality could increase
productivity led to the development in Japan of the Total Quality Control (TQC) concept, in
which quality and productivity are viewed as two sides of a coin. TQC also required that a
manufacturer's suppliers make use of quality circles.
Quality circles in Japan were part of a system of relatively cooperative labor-
management relations, involving company unions and lifetime employment guarantees for
many full-time permanent employees. Consistent with this decentralized, enterprise-oriented
system, quality circles provided a means by which production workers were encouraged to
participate in company matters and by which management could benefit from production
workers' intimate knowledge of the production process. In 1980 alone, changes resulting from
employee suggestions resulted in savings of $10 billion for Japanese firms and bonuses of $4
billion for Japanese employees.
Japanese industry obviously embraced and applied quality circles (the idea of an
American thinker) and QC has contributed to Japanese current dominance in many sectors,
notably in automobiles. If QC became a fad in the U.S. and failed to deliver, implementation
was certainly one important reason—as Zimmerman and Weiss pointed out. U.S. adapters of
QC may have seen the practice as a silver bullet and did not bother shooting straight. The reason
why a succession of other no doubt sensible management techniques have also, seemingly,
failed to get traction may be due to a tendency by modern management to embrace mechanical
recipes for success without bothering to understand and to internalize them fully and to absorb
their spirit.
The problems of adaptation, which have caused quality circles to be abandoned, are
made plain by a look at the conditions two experts think are necessary for the success of quality
circles. Ron Basu and J. Nevan Wright, in their book Quality Beyond Six Sigma (another quality
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management technique) specified seven conditions for successful implementation of quality

circles. These are summarized below:
Quality circles must be staffed entirely by volunteers.
Each participant should be representative of a different functional activity.
The problem to be addressed by the QC should be chosen by the circle, not by
management, and the choice honored even if it does not visibly lead to a management goal.
Management must be supportive of the circle and fund it appropriately even when
requests are trivial and the expenditure is difficult to envision as helping toward real solutions.
Circle members must receive appropriate training in problem solving.
The circle must choose its own leader from within its own members.
Management should appoint a manager as the mentor of the team, charged with helping
members of the circle achieve their objectives; but this person must not manage the QC.
"Quality circles have been tried in the USA and Europe, often with poor results," Basu
and Wright say. "From our combined first-hand experience of quality circles in Australasia,
the UK and Europe, South America, Africa, Asia and India, we believe that quality circles will
work if [these] rules are applied."
Any experienced manager, contemplating the rules shown above and the typical
management environments in which he or she works or has worked in the past will be able to
discern quite readily why QC has not taken a firm hold in the U.S. environment. As for the
small business owner, he or she may actually be in a very good position to try this approach if
it feels natural. An obviously important element of success, confirmed by Basu and Wright, is
that QC must be practiced in an environment of trust and empowerment.
Activity 11.3. Contact any staff or supervisor from a firm and ask him/her about the
different Quality Tools being used in their firm. How these tools helped them in attaining
their targets. What problems did they encounter in the implementation of these tools?
11.21. QUALITY MANAGEMENT SYSTEMS
An organization will benefit from establishing an effective quality management system

(QMS). The cornerstone of a quality organization is the concept of the customer and supplier
working together for their mutual benefit. For this to become effective, the customer-supplier
interfaces must extend into, and outside of, the organization, beyond the immediate customers
and suppliers.
A QMS can be defined as: “A set of coordinated activities to direct and control an
organization in order to continually improve the effectiveness and efficiency of its
performance.” These activities interact and are affected by being in the system, so the isolation
and study of each one in detail will not necessarily lead to an understanding of the system as a
whole.
The main thrust of a QMS is in defining the processes, which will result in the
production of quality products and services, rather than in detecting defective products or
services after they have been produced.
The benefits of a QMS A fully documented QMS will ensure that two important
requirements are met:
• The customers’ requirements – confidence in the ability of the organization to deliver
the desired product and service consistently meeting their needs and expectations.
• The organization’s requirements – both internally and externally, and at an optimum
cost with efficient use of the available resources – materials, human, technology and
information.
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These requirements can only be truly met if objective evidence is provided, in the form
of information and data, to support the system activities, from the ultimate supplier to the
ultimate customer. A QMS enables an organization to achieve the goals and objectives set out
in its policy and strategy. It provides consistency and satisfaction in terms of methods,
materials, equipment, etc, and interacts with all activities of the organization, beginning with
the identification of customer requirements and ending with their satisfaction, at every
transaction interface.
Management systems are needed in all areas of activity, whether large or small
businesses, manufacturing, service or public sector.
A good QMS will:
• Set direction and meet customers’ expectations
• Improve process control
• Reduce wastage
• Lower costs
• Increase market share
• Facilitate training
• Involve staff
• Raise morale
In a survey conducted by the Defence Evaluation Research Agency (DERA), ca.96% of
respondents said they believed their system contributed to meeting the business goals.
However, ca.72% responded that their organization did not measure this contribution.
International Organization for Standardization (ISO) ISO is a worldwide federation of
national standards bodies (ISO member bodies). The work of preparing International Standards
is carried out through ISO technical committees, in liaison with international organizations,
governmental and non-governmental bodies. ISO’s most recent family of standards for quality
management systems are currently in their final draft (FDIS) form, and comprises:
• ISO/FDIS 9000:2000 - Quality management systems – Fundamentals and vocabulary
• ISO/FDIS 9001:2000 - Quality management systems – Requirements
• ISO/FDIS 9004:2000 – Guidelines for performance improvement.
It is expected that they will be issued as an ISO in December 2000 or January 2001. If
these vary from the FDIS version, changes will be made to this website. They are built around
business processes, with a strong emphasis on improvement and a focus on meeting the needs
of customers. The new standards originated from a regular six year review and are intended to
be generic and adaptable to all kinds of organizations. The ISO 9002 and ISO 9003 are to be
discontinued (but can still be used by those organizations certified against them during the three
year transition period), and ISO 9001and ISO 9004 are designed to be used together, but can
be used independently. The ISO Series can form the means by which a holistic management
system can be implemented, into which quality, health and safety and environmental
responsibility can be integrated, with the audits carried out either separately or in combination.
ISO 9001 specifies the requirements for a QMS that may be used by organizations for
internal application, certification or contractual purposes. The process approach is shown in
the conceptual model from the ISO 9001 Standard, recognizing that customers play a
significant role in defining requirements as inputs, and monitoring of customer satisfaction is
necessary to evaluate and validate whether customer requirements have been met.
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The major clauses and sub-clause are:

• Scope
• Normative reference
• Terms and definitions
• Quality management system
General requirements
Documentation requirements
• Management responsibility
Management commitment
Customer focus
Quality policy
Planning
Responsibility, authority and communication
Management review
• Resource management
Provision of resources
Human resources
Infrastructure
Work environment
• Product realization
Planning of product realization
Customer-related processes
Design and/or development
Purchasing
Production and service operations
Control of measuring and monitoring devices
• Measurement, analysis and improvement
General
Planning
Monitoring and measurement
Control of non-conforming product
Analysis of data
Improvement
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The management system requirements under these clauses are specified in more detail
in the ISO 9001 Standard.
An effective QMS must ensure that the organization has a strong Customer Focus.
Customer needs and expectations must be determined and converted into product requirements.
Top management have to demonstrate Leadership. Providing unity of purpose through
an appropriate quality policy, ensuring that measurable objectives are established, and
demonstrating that they are fully committed to developing, sustaining and improving the QMS.
Managers must ensure that there is Involvement of People at all levels in the
organization. This includes ensuring that there is an awareness of the importance of meeting
customer requirements and responsibilities in doing this, and people are competent, on the basis
of appropriate training and experience.
An effective QMS must be a strategic tool designed to deliver business objectives, and
must have, at its core, a Process Approach, with each process transforming one or more inputs
to create an output of value to the customer. The key business processes may be supported by
procedures and work instructions in those cases where it is judged necessary to rigidly define
what rules are to be followed when undertaking a task. Most organizations will have core
business processes that define those activities that directly add value to the product or service
for the external customer, and supporting processes that are required to maintain the
effectiveness of the core processes.
The understanding of the many interrelationships between these processes demands that
a Systems Approach to management is adopted. The processes must be thoroughly understood
and managed so that the most efficient use is made of available resources, to ensure that the
needs of all the stakeholders – customers, employees, shareholders and the community - are
met.
Activity 11.4. Try to ask a person from a firm about their QMS.
a. How QMS evolved in their firm?
b. How QMS benefited them?
c. What is the impact of the implementation of QMS to their workplaces?
d. How QMS transformed the firm?
e. What challenges did the firm encounter in the implementation of QMS?
f. What are the attitudes and perceptions of the people in the firm with regards to
the implementation of QMS?
g. Any future plans that the firm has in terms of QMS?
PROGRESS CHECK
1. Define quality and list the objectives of quality control

2. Explain 5 S house-keeping.
3. Explain Pareto charts with graphical representation.
4. Write any five functions of Quality control Department.
5. Explain briefly about PDCA cycle.
6. Illustrate Histogram with graphical representations.
7. List the advantages of Quality control.
8. Explain the cause and effect diagram.
9. List the factors affecting Quality.
10. State the advantages of quality control.
11. Explain 5-S House – keeping.
107
12. State the function of Quality circle [05 marks]
CASE STUDY:
Maurice Clarks works for a software company as a technical support representative.

His duties include answering customer’s phone calls, providing information to customers, and
troubleshooting technical problems (encountered by customers using the company software).
His boss told him to be courteous and not to rush callers. However, his boss told him also that
he must answer an average of 20 calls per hour so that the department can meet its target in
term of number of answered calls. Sometimes, Maurice needs to search deeply in complex
manuals in order to provide the right answer/information to customers facing sometimes urgent
unusual problems. Maurice feels frustrated as satisfying his boss and compromising between
his requests is not an easy task.
Questions:
1. Outline the different quality aspects necessary in Maurice’s work.
2. Based Deming’s concept, propose a plan to improve the situation of Maurice.
Quality management is only applicable to firms in the manufacturing sector and not in
the public or service industry. Give argument for or against this assertion and discuss the
dimension of service Quality.
Discuss the relevance of the following to performance and development of competitive

advantage to today’s organization:
a. Kaizen
b. 5S
c. Quality Circles
SUPPORT MATERIALS/REFERENCES:
Walker, M., 2008.•Inventory Management-Introduction [Video online] Available at

:<http://www.youtube.com/watch?v=qkZQxXJuqKo>[Accessed 01July 2011].
BeckySavage, 2008.LIFO Vs FIFO [Video online] Available at :<http://www.•
youtube.com/watch?v=ExNsFh0_39s>[ Accessed 04 July 2011].
Muller, M., 2003.•Essentials of inventory management, AMACOM Div American Mgmt Assn.
Bose, C.D., 2006.•Inventory Management, PHI Learning Pvt. Ltd.
Recommended Reading
Piasecki, D.J.,2003. • Inventory Accuracy: People, Processes, & Technology, Ops Pub
Bragg, S.M.,2011.• Inventory Best Practices,2nd,ed.,Wiley
Mercado, E.C.,2007. Hands-On Inventory Management (Resource Management), Auerbach
Publications
Inventory Management Robert H. Miles, Coffin Nails and Corporate Strategies.
Englewood Cleffs, NJ: Prentice-Hall, 1980
Gerard F. Adams, The Business Forecasting Revolution. New York, Oxford University
Press, 1986
Industrial Management Notes, Shubham’s Industrial management, 2001
Production/Operations Management by William J.Stevenson, Irwin/McGraw-Hill
108
http://www.opexworks.com/KB/Total_Quality_Management/TQM_Tools_and_Techniques/
http://jnujprdistance.com/assets/lms/LMS%20JNU/MBA/MBA%2%20Material%20Manage
ment/Sem%20IV/Inventory%20Management/Inventory%20Management%20.pdf
https://drive.google.com/file/d/1U5GKLpxta29io0SDbR7ULST9roY3TEPM/view
https://drive.google.com/file/d/1Wj_qjC0W2e0UdH4nkNsovtEgTqawsCk-/view
https://www.qualitymag.com/articles/95237-what-is-quality-management-and-why-does-it-
matter
https://nearsay.com/c/453731/42072/4-qualities-of-an-excellent-slice-of-pizza
https://pmstudycircle.com/2012/01/quality-assurance-vs-quality-contro
https://www.isixsigma.com/dictionary/demings-14-points/
https://studentsfocus.com/wp-content/uploads/anna_univ/CSE/6SEM/GE6757%20-
%20TQM/notes/GE%206757%20TQM%20NOTES.pdf
https://asq.org/quality-resources/check-sheet
https://www.academia.edu/15768192/TOTAL_QUALITY_MANAGEMENT_SELECTED_
QUESTION_AREAS?auto=download

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TOPICS: TOTAL QUALITY MANAGEMENT

At the end of the lesson, you must have

11.1.1 Culture of Quality

11.1.2. The People Responsible for Quality

is certainly value in instilling the concept of Quality in every member of an organization,

11.1.3. A Short History of Quality

10.1.4. Business Case for Quality Management

Implementing Quality Management and investing in a QMS requires the initiative of

11.1.5. Cost of Quality

11.2. QUALITY CONTROL/QUALITY ASSURANCE (QA/QC)

Figure 11.1. Quality Assurance vs. Quality Control

Figure 11.2. Quality Assurance

Figure 11.3. Quality Control

11.2.1. Benefits of Quality Assurance/Quality Control

The following are a few benefits of these processes:

Inspection is an art of checking materials, parts, components or products at various

Difference types of inspection:

11.4. TOTAL QUALITY MANAGEMENT (TQM)

Figure 11.4. PDCA Cycle

Plan-Do-Check-Act (PDCA) can be defined as frame work that provides a proper

- Define precise goals, desired outcomes and related measures of success

Aim and Objectives:

When to Use PDCA:

11.5. PRINCIPLES OF TQM

Deming offered 14 key principles for management for transforming business

11.6. BASIC CONCEPTS OF TQM

1. Management Involvement – Participate in quality program, develop quality council,

Figure 11.5. TQM Framework

11.7. BARRIERS IN TQM IMPLEMENTATION

• Treating suppliers as adversaries to be manipulated, taken advantage of Adversarial

11.8. ROLE OF SENIOR MANAGEMENT

1. Study and investigate TQM concepts and issues.

11.9. STRATEGIC QUALITY PLANNING

Figure 11.6. Strategic Planning Cycle

11.10. CUSTOMER SATISFACTION

11.10.2. Types of Customers

11.10.3. Customer Complaints (Customer Feedback)

Customer feedback must be continuously solicited and monitored to reduce the

Customer Feedback or Customer Complaint is Required:

11.10.4. Tools Used For Collecting Customer Complaints

Comment card - Low cost method, usually attached to warranty card

11.11. EMPLOYEE EMPOWERMENT

11.11.1. General Principles or Characteristics For Empowering Employees

1. Tell people what their responsibilities are.

11.11.2. Conditions To Create The Empowered Environment

1. Every one should under stand the need to change

11.12. TEAMS AND TEAM WORKS

A team can be defined as a group of people working together to achieve common

11.12.1. Types of Teams

Process improvement team: Involved in improvement of sub processes or processes.

11.12.3. Elements of Effective Team Work

Team Management Wheel:

11.12.4. Stages of Team Development

11.13. RECOGNITION AND REWARD

Recognition is a process whereby management shows acknowledgement (Verbal or

11.13.1. Steve Smith’s Twenty Different Ways to Recognize the Employees

• Send thank letter whenever possible

11.14. CONTINUOUS PROCESS IMPROVEMENT (CPI)

11.14.1. Input / Output Process Model

The process refers to business and production activities of an organization. Example

Figure 11.8. Input/Output Process Model

Figure 11.9. Relationships Among Various 5S