TQM EVOLUTION

Powerpoint created by:

Engr. Ma. Carol P. Tubog
Learning Outcomes:
• Define Quality
• Differentiate Quality and
Quantity
• Discuss Aspects of Quality
• Identify primary elements,
core concepts, and benefits of
total quality management
 WHAT IS QUALITY?
• Merriam Webster’s defines quality
as
“an inherent feature; degree of
excellence; and superiority in kind
• Some definitions “Meeting or
exceeding customer expectations”
• Juran, one of the quality qurus,
defined quality as;
• Fitness for Use
 QUALITY
• ISO Definition of QUALITY;

“The totality of features and

characteristics of a product or
service that bears on its ability
to satisfy customer’s stated
and implied needs."
 QUALITY vs QUANTITY
QUALITY QUANTITY
• degree of • measurable
excellence • size
• distinctive • amount
attribute • number
• characteristic of a
thing
 ASPECTS OF QUALITY
1) Quality of Design 2) Quality of
• Influenced by Conformance
several factors; • Product/service
- Product type meets the
- Cost standard
- Profit policy requirements of
- the organization.
Demand of product
- Material availability • Defect detection,
- Product reliability
Defect Root
Cause, Defect
Prevention
ASPECTS OF QUALITY
3) Quality of Performance
• Product or service meets
customer’s expectations.
 QUALITY PARADIGMS
1) Custom-craft 3) Statistical quality
paradigm control paradigm
• Product/service • Emphasis on
should be exactly production
as what customer processes
demands.
4) Total Quality
2) Mass production Management
and sorting paradigm
paradigm
• production rate
The Importance of Quality: The Japanese Chain Reaction

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
WHAT IS 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.
WHAT IS 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
 HOW IS CUSTOMER SATISFACTION
ACHIEVED?
Two Dimensions of • manufacturing
Quality: industry: performance,
reliability, durability,
1) Product feature- ease of use, esthetics,
refers to the etc
quality of • service industry:
design. customer satisfation is
gained through
accuracy, timeliness,
friendliness and
courtesy, knowledge of
server, etc.
 Introduction
 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
 Introduction
Why Quality?
Reasons why quality is a cardinal 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.
 Introduction
 Product complexity- as systems
have become more complex the
reliability requirments for suppliers
of components have bome more
stringent

 Higher level of customer

satisfaction- higher customer
expectations are getting spawned
by increasing competition.
History of Quality Management
…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.
History of Quality Management
…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.
 History of Quality Management
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. 19
 History of Quality Management

• 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.
 History of Quality Management
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
 History of Quality Management
 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)
 History of Quality Management

• 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)
 History of Quality Management

Next 20 odd years, when top managers in USA

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.)
 History of Quality Management
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.
 The Deming 14 Point Philosophy

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.
 Deming’s 14 Point Management
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.
 Deming’s 14 Point Management
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.
 Juran’s 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.
 Major Quality Concepts
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
 Major Quality Concepts
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.
 Major Quality Concepts
- 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”
 Major Quality Concepts

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.
 Major Quality Concepts
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)
 Major Quality Concepts
7. TOTAL QUALITY MANAGEMENT
• a comprehensive, organization-wide effort to
improve the quality of products and services,
applicable to all organizations.
• 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.
 Primary Elements of TQM
Foundation

1) Ethics
• Following the code of conduct of organization and
adheres to rules and regulations.

2) Integrity
• Respect company’s policies

3) Trust
• Relationship based on reliance.
 Primary Elements of TQM
Building Bricks
1. Leadership
• Provides a direction to the entire process of TQM
2. Teamwork
• Problem-Solving
• Quality Improvement
• Natural Work
3. Training
 Primary Elements of TQM

Binding Mortar

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