MODULE 1

Total Quality Management

Concept of Quality
Definition of Quality

1. Quality is defined as degree of excellence.

2. In manufacturing, a measure of excellence or a state of being free from defects and
deficiencies is called ‘quality.’
3. ‘Quality is conformance to requirements/specifications.’ (Crosby, 1979)
4. Deming stated that the definition of quality is ‘meeting or exceeding customer
expectations.’
5. ‘Quality is a measure of fitness for use.’ (Juran, 1979)
6. In the mathematical method, quality is defined as the ratio of performance to
expectation.
Quality = Performance
Expectation
7. Quality is cost.
8. Quality is price.

Quality Gurus

 Dr. W. Edwards Deming

Theory of optimization (optimization for the entire system)
Theory of variation (major cause of poor quality)
Deming’s 14 points for TQM
Deming cycle (PDCA)
Deming’s 14 points for TQM
1. Create constancy of purpose for improvement of product & service.
2. Adopt the new philosophy.
3. Cease dependency on mass inspection.
4. End the practice of awarding business on price tag alone.
5. Improve constantly and forever the system of production & service.
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 of workmanship.
13. Institute a vigorous program of education & retraining.
14. Take action to accomplish the transformation.
 Dr. Joseph Juran
 The trilogy of quality focuses on the roles of advanced quality planning, quality
control, and quality improvement.

 Philip Crosby
suggested the meaning of quality in different aspects, and he taught the meaning of
quality on the basis of defects, prevention, requirements, and the price of
nonconformance etc..

 Dr. Kaoru Ishikawa

This is the Japanese professor best known for the Ishikawa cause-and-effect
diagram (fishbone diagram).

Dimensions of Quality
(Garvin, 1984)
 Performance
This is the fundamental dimension of product quality.
 Reliability
The probability of not having faulty components in products.
 Durability
The effective life or longevity of the product before it is
declared unusable.
 Serviceability
This is the ability to provide a service to customers
 Aesthetics
This concerns the visual appearance or the appearance of the product.
 Features
An additional/ secondary attached feature and complements the main function of a
product.
 Perceived Quality
This signifies the reaction of a customer after the use of the product and/or service.
 Conformance to Standards
Compliance with standards

o Kaizen – continuous improvement

o Internal Customer -employees or departments within your organization that use your
products or services.
o Plan-do-check-act cycle (PDCA)

MODULE 2
Total Quality Management

Total Quality Management

Total Quality Management (TQM) seeks to integrate all organizational functions to focus on
meeting customer needs and organizational objectives.
Company-Wide Approach
Total = Company Wide / Quality

Management = POSDCON ➜ POLC

TQM = Collaborative Effort
GOAL = do things right the first time

History ➜ for manufacturing

Now ➜ services
The Key Principles of TQM
Commitment from the Management
Employee Empowerment

Continuous Improvement ➜ Kaizen

Eight elements of TQM

Ethics – what is right, what is wrong Communication – have 3 levels

Integrity – Respect the fact o Downward – top to low
o Upward – low level
Trust – It must be reciprocated
management to top
Training – Improve o Lateral – communication
Teamwork – Unity across dept.

Leadership – On Your Own Recognition - acknowledgement

ADVANTAGES OF TQM
1. Cost reduction
2. Customer satisfaction
3. Defect reduction
4. Morale
 OBSTACLES TO IMPLEMENTING TQM
1. Lack of management commitment
2. Inability to change organizational culture
3. Improper planning
4. Lack of continuous training and education
5. Ineffective measurement techniques and lack of access to data and results
6. Paying inadequate attention to internal and external customers

MODULE 3
Total Quality Management
Customer Satisfaction
The success of an organization depends on the customers. If the customers are satisfied
therefore the number of customers will increase, they will buy again, and pay on time which is
helpful in the cash flow of an organization.

- TQM reversed the hierarchy

INTRODUCTION
The most successful TQM programs begin by defining quality from the customer’s
perspective

Quality means meeting or exceeding the customer’s expectations

CUSTOMER SATISFACTION MODEL
 Who is the Customer
• An external customer
‒ one who uses the product or service, the one who purchases the product or
service, or the one who influences the sale of the product or service
‒ current, prospective, and lost
 Current – existing customer
 Prospective – potential customer
 Lost – customer we no longer transact with
‒ Customers outside the organization
• An internal customer
‒ Each worker’s goal is to make sure that the quality meets the expectations of the
next person. When that happens throughout the manufacturing, sales, and
distribution chain, the satisfaction of the external customer should be assured.
‒ Employees – customers within the organization
NOTE:
o To satisfy external customers, you must need to satisfy internal
customers first.
o The ultimate goal of TQM is customer satisfaction.
o TQM is data-driven
Customer Perception of Quality
There is no acceptable quality level because the customer’s needs, values, and expectations
are constantly changing and becoming more demanding
ASQ (American Society for Quality) Survey on end user perceptions of important factors
that influenced purchases showed the following ranking
1. Performance 4. Warranty - Promise of quality to
consumers; serviceability
2. Features
5. Price
3. Service
6. Reputation
Customer Feedback
• Customer feedback must be continually solicited and monitored
• Feedback enables the organization to:
– Discover customer dissatisfaction.
– Discover relative priorities of quality.
– Compare performance with the competition.
– Identify customers’ needs.
– Determine opportunities for improvement
Tools for Listening to Voice of Customer
 Comment cards
Questionnaires
Focus groups
Toll-free telephone lines
The Internet
Employee feedback
USING CUSTOMER COMPLAINTS
o Complaints are vital in gathering data on customer perceptions
o A dissatisfied customer can easily become a lost customer.
o Frequently, dissatisfied customers switch to a competitor and don’t say anything
o Many organizations use customer dissatisfaction as the primary measure to assess
their process improvement efforts
Using Customer Complaints

Service Quality

• Customer service is the set of activities an organization uses to win and retain
customers’ satisfaction.
• It can be provided before, during, or after the sale of the product or exist on its own.
Elements of customer service are:
 Organization
 Customer Care
 Communication
 Front-line people
 Leadership

NOTE:

Service - The typical service

Customer service - How well you provide the service