© 2020 Dr.

1
Mesay A.
 What is Total Quality Management
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 Definition: TQM is a management philosophy, a continuous improvement

approach to doing business through a new management model.
 TQM is a comprehensive management system which:
 Focuses on meeting owners’/customers’ needs, by providing quality
services at a reasonable cost.
 Focuses on continuous improvement.
 Recognizes role of everyone in the organization.
 Views organization as an internal system with a common aim.
 Focuses on the way tasks are accomplished.
 Emphasizes teamwork.

© 2020 Dr. Mesay A.

 Total Quality Management (TQM)
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 Total - made up of the whole

 Quality - degree of excellence a product or service

provides

 Management - act, art or manner of planning,

controlling, directing,….

“Therefore, TQM is the art of managing the whole to

achieve excellence”.
© 2020 Dr. Mesay A.
 Total Quality Management
4

 Requires cultural change – prevention not detection,

pro-active versus fire-fighting, life-cycle costs not
price, etc
 Many companies will not start this transformation
unless faced with disaster/problems or forced by
customers

© 2020 Dr. Mesay A.

 Effect of Quality Improvement

Improve Quality (Product/Service)

Increase Productivity (less rejects, faster job)

Lower Costs and Higher Profit

Business Growth, Competitive, Jobs, Investment

5 © 2020 Dr. Mesay A.

 Issues for customer satisfaction...TQM
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Checklist for both internal and external customers

1. Who are my customers?
2. What do they need?
3. What are their measures and expectations?
4. Does my product/service exceed their
expectations?
5. How do I satisfy their needs?
6. What corrective action is necessary?

© 2020 Dr. Mesay A.

 Continuous Improvement
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Inputs – processing – outputs

feedback

Process Outputs
Work methods Products
Input
Procedures
Materials Delivered service
Tools
Info, Data In-process jobs –
Production – Cutting,
People Welding, etc. forms signed,
drawing completed
Money Bank –
deposit/withdrawal Others
process,
Kad Pintar Application Also by-products,
Process at NRD wastes

Conditions
© 2020 Dr. Mesay A.
 The three aspects of TQM
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Counting
Tools, techniques, and training in their use for
 analyzing, understanding, and solving quality
problems.

Customers
Quality for the customer as a
 driving force and central concern.

Culture
Shared values and beliefs, expressed by
 leaders, that define and support quality.

© 2020 Dr. Mesay A.

 TQM

Principles & Tools &

Practices Techniques

Leadership Quantitative Non-quantitative

Customer
satisfaction SPC ISO 9000

Acceptance
Employee Sampling ISO 14000
improvement

Reliability Benchmarking
Continuous
improvement
Experimental design Total productive
maintenance
Supplier
partnership Management tools
FMEA

Performance
measures QFD Concurrent
engineering

9 Scope of the TQM activity © 2020 Dr. Mesay A.

10 © 2020 Dr. Mesay A.
 Elements of TQM for Success
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 A Sustained Management Commitment to Quality.

 Focusing on the Customer.
 Preventing Rather Than Detecting Defects.
 Universal Quality Responsibility.
 Quality Measurement.
 Continuous Improvement.
 Root Cause Corrective Action.

© 2020 Dr. Mesay A.

 Cont…
12

 Management Support
 Mission Statement
 Proper Planning
 Bottom Line Focus
 Measurement
 Empowerment
 Teamwork/Effective Meetings
 Continuous Process Improvement
 Dedicated Resources

© 2020 Dr. Mesay A.

 Manufacturing Quality vs. Service
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Quality
 Manufacturing quality focuses on tangible product
features
 Conformance, performance, reliability, features
 Service organizations produce intangible products
that must be experienced
 Quality often defined by perceptional factors like courtesy,
friendliness, promptness, waiting time, consistency

© 2020 Dr. Mesay A.

 TQM Philosophy
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 TQM Focuses on identifying quality problem root causes

 Encompasses the entire organization
 Involves the technical as well as people
 Relies on seven basic concepts of
 Customer focus

 Continuous improvement (KAIZEN)

 Employee empowerment

 Use of quality tools

 Product design

 Process management

 Managing supplier quality

© 2020 Dr. Mesay A.

KAIZEN
 The Evolution of Quality

• Interchangeable parts (Eli Whitney, 1798)

– Standardized production
• Inspection
– Measuring, examining, testing, or gauging of one or more
characteristics of a product or service
– Determining if the product or service conforms to the established
standards
• Quality control
– Establishing standards
– Ensuring conformance to the standards
– Corrective measures
– Preventive measures

16 © 2020 Dr. Mesay A.

17 © 2020 Dr. Mesay A.
 NEW AND OLD CULTURES

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 Total Quality Management
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New Thinking About Quality

Old Quality is “small q” New Quality is “Big Q”
 About products About organisations
 Technical Strategic
 For inspectors For everyone
 Led by experts Led by Management
 High grade The appropriate grade
 About control About improvement

© 2020 Dr. Mesay A.

 Ways of Improving Quality
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 Plan-Do-Study-Act Cycle (PDSA)

 Also called the Deming Wheel after originator
 Circular, never ending problem solving process

 Seven Tools of Quality Control (What they are?)

 Tools typically taught to problem solving teams
 Quality Function Deployment
 Used to translate customer preferences to design

© 2020 Dr. Mesay A.

 PDSA Details
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 Plan
 Evaluate current process
 Collect procedures, data, identify problems
 Develop an improvement plan, performance objectives
 Do
 Implement the plan – trial basis
 Study
 Collect data and evaluate against objectives
 Act
 Communicate the results from trial
 If successful, implement new process

© 2020 Dr. Mesay A.

 PDSA cont..
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 Cycle is repeated
 After act phase, start planning and repeat process

© 2020 Dr. Mesay A.

 Benefits and Principles of TQM :
 Improved quality
 Employee participation
 Team work Principles
 Working relationships 1. Focus on the customer
 Customer satisfaction (Both internal &
external
 Employee satisfaction 2. Participation and Team
 Productivity work
 Communication 3. Employee involvement
and empowerment
 Profitability 4. Continuous
 Market share improvement and
learning.
23 © 2020 Dr. Mesay A.
 Cont…
 Total Quality Management encompasses a set of four
principles & eight core concepts.
 Eight core concepts:
 Customer satisfaction
 Internal customer are real
 All work is process
 Measurement
 Teamwork
 People make quality
 Continuous improvement cycle
 prevention
 Characteristics of Successful TQM Process
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1. Empower, not control subordinates. Provide resources,

training, and work environment to help them do their jobs
2. Emphasize improvement rather than maintenance
3. Emphasize prevention
4. Encourage collaboration rather than competition
5. Train and coach, not direct and supervise
6. Learn from problems – opportunity for improvement
7. Continually try to improve communications
8. Continually demonstrate commitment to quality
9. Choose suppliers on the basis of quality, not price
10. Establish organisational systems that supports quality efforts

© 2020 Dr. Mesay A.

 Seven Tools of Quality Control
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1. Cause-and-Effect Diagrams
2. Flowcharts
3. Checklists
4. Control Charts
5. Scatter Diagrams
6. Pareto Analysis
7. Histograms

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 Cause-and-Effect Diagrams
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 Called Fishbone Diagram

 Focused on solving identified quality problem

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 Flowcharts
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 Used to document the detailed steps in a process

 Often the first step in Process Re-Engineering

© 2020 Dr. Mesay A.

 Checklist
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Simple data check-off sheet designed to identify type of

quality problems at each work station; per shift, per
machine, per operator

© 2020 Dr. Mesay A.

 Control Charts
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 Important tool used in Statistical Process Control –

next chapter
 The UCL and LCL are calculated limits used to show
when process is in or out of control

© 2020 Dr. Mesay A.

 Pareto Analysis
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 Technique that displays the degree of importance for each

element
 Named after the 19th century Italian economist; often called
the 80-20 Rule
 Principle is that quality problems are the result of only a
few problems e.g. 80% of the problems caused by 20% of
causes

© 2020 Dr.
Mesay A.
 Histograms
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 A chart that shows the frequency distribution of observed

values of a variable like service time
at a bank drive-up window

 Displays whether the distribution is symmetrical (normal) or

skewed

© 2020 Dr. Mesay A.

 Why TQM Efforts Fail
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 Lack of a genuine quality culture

 Lack of top management support and
commitment
 Over- and under-reliance on SPC

methods

© 2020 Dr. Mesay A.

 Scope of TQM
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1. Are integrated organizational infrastructure

2. A set of management practices
3. A wide variety of tools and techniques
Modern Quality Management
Quality Gurus and their Philosophies
1 W. Edwards Deming (USA) [U.S. statistician & consultant
known as father of quality control]
• Higher quality means low cost
• Quality means continuous improvement
• Deming’s 14 Points for Quality Management
• Deming’s Seven Deadly Diseases and Sins
• Deming wheel/ cycle/ P_D_C_A cycle
• Deming’s triangle
© 2020 Dr. Mesay A.
• Deming prize
35

Deming’s Triangle (3
Deming Wheel/Deming Axioms)
Cycle/P–D–C–A Cycle

Deming’s Cycle (1900-1993)

Act Plan
P-D-S/C-A
Check Do © 2020 Dr. Mesay A.
 Purpose: A management concept suggested by Deming to
satisfy the quality requirements of the customer by using
the cycle: plan, do, check and action.

 When to use: For the development of a new product

based on the requirements of the customer.

 Example: A company implementing the TQM process used

the Deming Wheel for achieving continuous improvement
of the various business processes in order to develop
quality improvement of the whole organisation.
37

2. Joseph Juran (USA)

Defined quality as “fitness for use”.
a. Top management commitment
b. Costs of quality
c. Quality trilogy
d. 10 steps for quality improvement
e. Universal breakthrough sequence.

© 2020 Dr. Mesay A.

38
Quality Habit

© 2020 Dr. Mesay A.

39

3 Philip B Crosby (USA): (Management consultant and

director of Crosby’s Quality College. Wrote a book
titled “Quality is free” of which 1 million copies sold)
Quality Philosophies
i. Quality is free

ii. Goal of zero defects

iii. 6 ‘C’s – Comprehension, Commitment, Competence,

Correction, Communication, Continuance.

iv. Four absolutes of Quality

v. 14 steps for quality improvement

vi. Quality Vaccine/Crosby Triangle. © 2020 Dr. Mesay A.

40

4 . Armand V. Feigenbaum (USA)

a. Concept of TQC (Total Quality Control)

b. Quality at the source

c. Three steps to quality – Quality leadership, Modern

quality technology, Organisational Commitment.
d. SQC and CWQC (Company-Wide Quality Control)

© 2020 Dr. Mesay A.

41

5 Kaoru Ishikawa (Japan) (Japanese Quality Authority

 Quality circles
 Ishikawa diagram for problem solving
 Quality training
 Root cause elimination
 Total employee involvement
 Customer focus
 Elimination of inspection
 C.W.Q.C.
 Japanese quality strategy.
6 Genichi Taguchi (Japan)
 Quality Engineering
 Taguchi Methods
 Taguchi’s quality loss function (L = cd2) [L=Loss–C =
Constant d = deviation i.e., x – T]
© 2020 Dr. Mesay A.
42

7 Masaki Imai (Management Consultant of Japan)

– (Continuous improvement)
8 Shigeo Shingo (Japan)
“Poka Yoke” – means “Fail proofing” or “Fool-
proofing” to reduce defects to zero (Handle
errors as they occur)
9 Dr. Walter Shewhart (USA) : (Statistician at
Bell Laboratories)
Statistical Quality Control : (a) SPC control
charts (b) Acceptance sampling (with Dodge &
Romig)
© 2020 Dr. Mesay A.
 Quality Awards and Standards
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 Malcolm Baldrige National Quality Award

(MBNQA)
 The Deming Prize
 ISO 9000 Certification
 ISO 14000 Standards

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 ISO Standards
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 ISO 9000 Standards:

 Certification developed by International Organization
for Standardization
 Set of internationally recognized quality standards
 Companies are periodically audited & certified
 ISO 9000:2000 QMS – Fundamentals and
Standards
 ISO 9001:2000 QMS – Requirements
 ISO 9004:2000 QMS - Guidelines for Performance
 More than 40,000 companies have been certified
 ISO 14000:
 Focuses on a company’s environmental responsibility
© 2020 Dr. Mesay A.
 Homework Hints
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 This is not required, but for extra credit!

 Research on TQM:
 Internet probably best, but library OK.
 Link on my website:
http://www.csus.edu/mgmt/blakeh/www.html
 Find an article that tells how a firm uses one (or more)
of the quality concepts.
 Write a summary of the article:
 One page—single space paragraphs, double space between
paragraphs.
 Give the source, like in a bibliography.
© 2020 Dr. Mesay A.
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© 2020 Dr. Mesay A.

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© 2020 Dr. Mesay A.