 be generate the right meaning and

interpretation of quality and other related

terms as these will provide a strong
foundatin for TQM
 Identify the various dimensions of quality
 Outline a historical perspective of quality
and the evolution of TQM

November 29, 2020 2

 What is Quality?
 Merriam Webster’s Collegiate Dictionary,
10th Edition(1994) defines quality as
“an inherent feature; degree of excellence;
and superiority in kind
Some definitions that have gained wide
acceptance in the corporate world
 “Meeting or exceeding customer
expectations”
 Juran, one of the quality qurus, defined
quality as;
 Fitness for Use

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  Based on Juran‘s definiton, quality
therefore does not only have to be
perceived by the customer, but the
customer experience of quality of a
product or service is more important.
 Quality does not mean an expensive
product

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  The American National Standards
Institute (ANSI) and the American
Society for Quality (ASO) defined
quality as;
 The totality of features and characteristics
of a product or service that bears on its
ability to satisfy customer’s stated and
implied needs.

November 29, 2020 5

 Improve Quality

Costs decreases due to fewer defects,

Lesser rework, fewer delays and better use
Of Men, Machine and Materials

Improve Productivity

Capture market with better quality

and lower price

Stay in business

Provide more jobs

November 29, 2020 6
  What is a customer?
 Anyone who is impacted by the product
or services delivered by an organization
 External customer- the end user

 Internal customer- other divisions of

the company that receive the
processed product.

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  What is a product?
 the output of a process carried by the
organization. It may be goods (e.g.
cellphones), software(e.g. a computer
code, a report) or service (e.g. banking,
insurance

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  How is customer satisfaction
achieved?
Two Dimensions of Quality:
 Product feature- refers to the quality of
design.
 In a manufacturing industry, it includes
performance, reliability, durability,
ease of use, esthetics, etc
 In a service industry, customer
satisfation is gained through accuracy,
timeliness, friendliness and courtesy,
knowledge of server, etc.
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  Freedom from deficiencies – refers to
quality of conformance
 Conformance to standards- ability of
the product or service to conform to
the stated and implied requirements of
customers.
 Higher conformance means fewer
complaint and increased customer
satisfaction

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 Why Quality?
Reasons why quality is a cardinal(prime) priority for most
organizations.
Competition

Changing customer-the new customer is not only

commanding priority based on volume but is more
demanding about the “quality system”

Changing product mix – the shift from low volume high

price to high volume, low price resulted in a need to reduce
the internal cost of poor quality.

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  Product complexity- as systems have
become more complex the reliability
requirments for suppliers of components
have become more stringent(rigid)

 Higher level of customer satisfaction-

higher customer expectations are getting
spawned by increasing competition.

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 …To know the future, know the past!

 Before Industrial Revolution, skilled craftsmen

served both as manufacturers and inspectors,
building quality into their products through their
considerable pride in their workmanship.
 Industrial Revolution changed this basic concept
to interchangeable parts. Likes of ;
 F. W. Taylor (“scientific management” fame)
emphasized on the use of scientific standards
equitably to managers as well as workers.

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 …To know the future, know the past!

 Adam Smith who advocated dividing the labor

required to make a product into simple, repetitive
tasks in order to develop workers’ skills, save time
and use specialized tools
 Frank and Lilian Gilbreth’s Time and Motion
economy, they believed that a way a task is
performed is as important as the time it takes to do
it.

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  Statistical approaches to quality control started at Western
Electric with the separation of inspection division. Pioneers like
Dr. Walter Shewhart, Deming W.Edwards and Joseph M. Juran
were all employees of Western Electric.
 Dr. Walter Shewart (1891-1967) developed the Plan, Do, Check
Act (PDCA) cycle for continuous improvement which is in use
even today
 After World War II, under General MacArthur's Japan rebuilding
plan, Deming and Juran went to Japan.
- Deming W, Edwards (1900-1993) modified PDCA cycle of
Shewart to the Plan, Do, Study and Act (PDSA). He also
advocated the extensive used of statistical quality control theory
to Japanese industry along with Juran.

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  Deming stressed the importance of suppliers and
customers for the business development and
improvement.
 He believed that people do their best and it is the system
that must change to improve quality.
 His 14 Points for Management formed the basis for his
advise to top Japanese management.

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  Joseph M. Juran (1904), developed the Statistical
Quality Handbook for Western Electric Company. He
identified Fitness of quality and popularized the same

 Juran travelled to Japan to teach is own theories- that

hands-on management was necessary at all levels of
corporation to ensure quality control and that
problems are opportunities to make improvements.
 His approach is still known today as the Juran Trilogy;
quality planning, quality control and quality improvement

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  In Japan the following individual took seed from this
training and went on to developed their own major
contributions to what is now Total Quality
Management:

 Kaoru Ishikawa (1915-1989), strongly advocated

the use of cause and effect diagram to provide a
true representation of the organizational impact
and procedures. He developed Fishbone or
Ishikawa diagram for cause and effect analyis.
 Taichi Ohno, known as the father of just-inTime
production. He is also the co-creator of Toyota
Production System (TPS)

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  Shigeo Shingo worked with Ohno on the TPS process
and developed some of its popular concepts including
poka-yoke (which means “mistake-proof in Japanese
and refers to taking human judgement out of some
types of production, thereby minimizing human errors)

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  Next 20 odd years, when top managers focused on
marketing, production quantity and financial
performance, Japanese managers improved quality
at an unprecedented rate.
 Market started preferring Japanese products and
American companies suffered immensely.
 America woke up to the quality revolution in early
1980s. Ford Motor Company consulted Dr. Deming to
help transform its operations.
(By then, 80-year-old Deming was virtually unknown
in USA. Whereas Japanese government had
instituted The Deming Prize for Quality in 1950.)

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  Managers started to realize that “quality of
management” is more important than
“management of quality.” Birth of the term Total
Quality Management (TQM).
 TQM – Integration of quality principles into
organization’s management systems.
 Early 1990s: Quality management principles started
finding their way in service industry. FedEx, The
Ritz-Carton Hotel Company were the quality
leaders.
 TQM recognized worldwide: Countries like Korea,
India, Spain and Brazil are mounting efforts to
increase quality awareness.
November 29, 2020 21
 The Deming Philosophy
Definition of quality, “A product or a service possesses quality if it helps
somebody and enjoys a good and sustainable market.”

Decrease cost because

Improve quality of less rework, fewer Productivity improves
mistakes.

Long-term Capture the market

Stay in with better quality
competitive business
strength and reduced cost.

November 29, 2020 22

1. Create and publish to all employees a statement of the aims and
purposes of the company. The management must demonstrate their
commitment to this statement.

2. Learn the new philosophy.

3. Understand the purpose of inspection – to reduce the cost and improve

the processes.

4. End the practice of awarding business on the basis of price tag alone.

5. Improve constantly and forever the system of production and service.

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6. Institute training
7. Teach and institute leadership.
8. Drive out fear. Create an environment of innovation.
9. Optimize the team efforts towards the aims and purposes
of the company.
10. Eliminate exhortations for the workforce.
11. Eliminate numerical quotas for production.
12. Remove the barriers that rob pride of workmanship.
13. Encourage learning and self-improvement.
14. Take action to accomplish the transformation.
November 29, 2020 24
Quality Trilogy –
1. Quality planning: Process of preparing to meet quality
goals. Involves understanding customer needs and
developing product features.
2. Quality control: Process of meeting quality goals during
operations. Control parameters. Measuring the deviation
and taking action.
3. Quality improvement: Process for breaking through to
unprecedented levels of performance. Identify areas of
improvement and get the right people to bring about the
change.
November 29, 2020 25
 1. Balance Scorecard – Robert Kaplan and David Norton,
suggest that a business’s executive team measure
progress in four areas that are equally important
• knowledge
• financial performance
• Internal business process and
• Learning/growth
Using the knowledge to focus the entire organization and its
various programs on “balancing” the scorecard

November 29, 2020 27

 2. ISO Standards - The International Standardization
Organization (ISO).
- headquartered in Switzerland
- more than 100 nations are “members”, that define and
agree on, and abide by a wide rang of product and
process safety and quality standards
- the idea behind ISO certification is that products made
in different nations be compatible for use in others.
- this allows manufacturers to buy parts from suppliers in
other countries.

November 29, 2020 28

 - The Quality Management Systems (QMS) standards
are know as “ISO 9000” family of standards; (ISO 9000-
2000, ISO 9001-2000, ISO 9004-2000); the
environmental management system are ISO 14000 and
so on.

3. Just-in-Time – a manufacturing theory of producing just

enough product to fill current orders as they are due.
“just –in time for them to be used”

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4. Kaizen – a Japanese term fro “unending improvement”
-Kaizen represents a system in which management encourages and
implements small, incremental improvements, involving employees
as team members and creating a culture of workers who all striving to
do better

-it focuses on simplifying complex process and training employees to

measurable improve them.

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5. Quality Circles – based on a Japanese method of grouping people
together in “Quality Control” (QC), meetings where they shared
their expertise and worked to solved a problem or improve process.
6. Six Sigma – created by Motorola in 1980s. The name refers to a
scientific way of describing quality based on variations that occur in
any process-plus or minus three “sigmas.” Sigma is the Greek letter
that signifies the standard deviations in a mathematical formula.
-the “sigma level” quantifies defects per million opportunities (DPMO)

November 29, 2020 31

 7. TOTAL QUALITY MANAGEMENT – a comprehensive,
organization-wide effort to improve the quality of products
and services, applicable to all organizations.Through ongoing
refinements in response to continuous feedback

- TQM quality is managed by the total effort of an

organization, and that each department or phase of production
is responsible for making its part of the product or services as
flawless as possible before passing it on the next user or
phase.

November 29, 2020 32

 7. TOTAL QUALITY MANAGEMENT – a management
philosophy, a paradigm, a continuous improvement approach
to doing business through a new management model

- TQM quality is managed by the total effort of an

organization, and that each department or phase of production
is responsible for making its part of the product or services as
flawless as possible before passing it on the next user or
phase.

November 29, 2020 33