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“Total Quality Management”

BS-322
Lecture 2
“Historical Evaluation of TQM”

Dr. Muhammad Irshad


Institute of Business Studies, KUST
Topic: TQM Historical Evaluation
Introduction
The roots of Total Quality Management (TQM) can be traced back
to Middle age when quality articles were produced by skilled craftsmen
e.g. goldsmiths, silversmiths, blacksmiths, potters etc. In this era, these
craftsmen spent years imparting quality skills and pride on making
quality products.

Industrial Revolution brought mass production where each worker


made only one part of product, and don't sense to the importance of
product quality.

In early 1920s statistical theory was first applied to product quality


control. This concept was further developed in Japan that expended
from products quality to quality of all business issues
This was the birth of TQM.
Course: Total Quality Management Course Code: BS 322– Instructor: Dr. Muhammad Irshad.
Institute of Business Studies, KUST,Email: drirshad@kust.edu.pk
Topic: TQM Historical Evaluation

Journey of Total Quality Management, from inspection to


business excellence.

 Inspection
 Quality Control and Statistical Theory
 Quality in Japan
 Total Quality Management
 Business Excellence
 Quality Awards and Excellence Models

Course: Total Quality Management Course Code: BS 322– Instructor: Dr. Muhammad Irshad.
Institute of Business Studies, KUST,Email: drirshad@kust.edu.pk
Topic: TQM Historical Evaluation

Inspection
• Inspection involves measuring, examining, and testing products,
process and services against specified requirements to determine
conformity.

• In early years of manufacturing, inspection was used as a tool to decide


if a worker’s job or a product met its requirements. In fact, at that time
inspection was not done in a systematic way, yet it worked well when
the volume of production was low. However, as organizations became
larger and more complicated this techniques of inspection seems not
more effective.

Course: Total Quality Management Course Code: BS 322– Instructor: Dr. Muhammad Irshad.
Institute of Business Studies, KUST,Email: drirshad@kust.edu.pk
Topic: TQM Historical Evaluation

Inspection
• In the early 1900s, Frederick Taylor satisfied this need by proposed a
framework of effective use of people in industrial organizations
through his book “ The Principles of Scientific Management”.

• This movement led to the emergence of a separate inspection


department. An important new idea that emerged from this new
department was defect prevention, which led to quality control.

Still inspection play an important role in modern quality practices,


but not to answer all quality problems, rather it’s one
tool within a wider quality management. 

Course: Total Quality Management Course Code: BS 322– Instructor: Dr. Muhammad Irshad.
Institute of Business Studies, KUST,Email: drirshad@kust.edu.pk
Topic: TQM Historical Evaluation

Statistical Quality Control

• Quality Control was introduced to detect and fix problems along the
production line to prevent the production of faulty products.

• Statistical theory played an important role in this area.

• In the 1920s, Dr W. Shewhart developed the application of statistical


methods to the management of quality. He argue that variation in the
production process leads to variation in product. Therefore, eliminating
variation in the process leads to a good standard of end products.

Course: Total Quality Management Course Code: BS 322– Instructor: Dr. Muhammad Irshad.
Institute of Business Studies, KUST,Email: drirshad@kust.edu.pk
Topic: TQM Historical Evaluation

Statistical Quality Control


Statistical Quality Control:

• Focuses on product and detection and control of quality problems


that involves testing samples and statistically infers compliance of
all products.
• This process is carried out throughout the production process and
requires trained production people as well as quality control
professionals.

This techniques was not fully utilized by manufacturing companies


until 1940s.

Course: Total Quality Management Course Code: BS 322– Instructor: Dr. Muhammad Irshad.
Institute of Business Studies, KUST,Email: drirshad@kust.edu.pk
Topic: TQM Historical Evaluation

Quality in Japan
• In 1950s Japanese products were perceived as cheep, low quality by the
world. Japanese industrial leaders recognised this problem and aimed to
produce innovative high quality products. In fact Japanese failed to do so.

• They invited a few quality gurus, such as Deming, Juran, and Feigenbaum
to learn how to achieve this aim.

• The gurus suggested that they can achieve their goal in five years; even
that not many Japanese believed but they followed their suggestions and
never looked back.

• In late 1950s, quality control management developed rapidly


and became the main theme of Japanese management.
Course: Total Quality Management Course Code: BS 322– Instructor: Dr. Muhammad Irshad.
Institute of Business Studies, KUST,Email: drirshad@kust.edu.pk
Topic: TQM Historical Evaluation

The idea did not stop at the management level and in early 60s the concept
of the quality control circle was first introduced in Japan.

A quality circle is a group of workers who meet and discuss issues to


improve all aspects of workplace and make presentations to management
with their ideas for improvement.

In this way workers were motivated because they felt that they were
involved and listened. Another advantage was the idea of improving not
only the quality of product but also all aspects of organizational issues.

This was the start of Total Quality.

Course: Total Quality Management Course Code: BS 322– Instructor: Dr. Muhammad Irshad.
Institute of Business Studies, KUST,Email: drirshad@kust.edu.pk
Topic: TQM Historical Evaluation

Total Quality
The term ‘total quality’ was used for the first time in a paper by Edward
Feigenbaum at the first international conference on quality control in
Tokyo in 1969. The term referred to wider issues within an organisation.

Ishikawa also discussed ‘total quality control’ in Japan, which is different


from the western idea of total quality. According to his explanation, it
means ‘company-wide quality control’ that involves all employees, from
top management to the workers, in quality control.

Course: Total Quality Management Course Code: BS 322– Instructor: Dr. Muhammad Irshad.
Institute of Business Studies, KUST,Email: drirshad@kust.edu.pk
Topic: TQM Historical Evaluation

Total Quality Management

• In the 1980s to the 1990s, a new phase of quality control and


management emerged in the history called Total Quality Management.

• By observing Japan’s success of applying quality issues, western


companies started to introduce their own quality initiatives.

• TQM as a “license to practise”.

• Nowadays, TQM and Business Excellence are interchangeable.

Course: Total Quality Management Course Code: BS 322– Instructor: Dr. Muhammad Irshad.
Institute of Business Studies, KUST,Email: drirshad@kust.edu.pk
Topic: TQM Historical Evaluation

Quality Awards and Excellence Models


• In 1988 United States government introduced Malcolm Baldrige
Award with defined internationally recognized TQM model to
encourage companies to improve their competitiveness.  

• In 1992 similar model was developed by the European Foundation of


Quality Management. The EFQM Excellence Model is the framework
for the European Quality Award.

The main purpose of these awards is to encourage more companies to


adopt quality management principles.

Course: Total Quality Management Course Code: BS 322– Instructor: Dr. Muhammad Irshad.
Institute of Business Studies, KUST,Email: drirshad@kust.edu.pk
Topic: TQM Historical Evaluation

Quality Awards and Excellence Models


The Deming Prize

• Given by the Union of Japanese Scientists and Engineers since 1951

• Named after W. Edwards Deming who worked to improve Japanese


quality after WWII

• Not open to foreign companies until 1984

• Florida P & L was first US company winner

Course: Total Quality Management Course Code: BS 322– Instructor: Dr. Muhammad Irshad.
Institute of Business Studies, KUST,Email: drirshad@kust.edu.pk
Topic: TQM Historical Evaluation

Quality Awards and Excellence Models


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
Pakistan Quality Award:
Pakistan National Quality Award (PQCA)
Course: Total Quality Management Course Code: BS 322– Instructor: Dr. Muhammad Irshad.
Institute of Business Studies, KUST,Email: drirshad@kust.edu.pk
Topic: TQM Historical Evaluation

RECAP
In this lesson we historically evaluate the concept of TQM:

 Inspection
 Quality Control and Statistical Theory
 Quality in Japan
 Total Quality Management
 Business Excellence
 Quality Awards and Excellence Models

Course: Total Quality Management Course Code: BS 322– Instructor: Dr. Muhammad Irshad.
Institute of Business Studies, KUST,Email: drirshad@kust.edu.pk
Topic: Total Quality Management

Course: Total Quality Management Course Code: BS 322– Instructor: Dr. Muhammad Irshad.
Institute of Business Studies, KUST,Email: drirshad@kust.edu.pk
Topic: Management by Objectives

Bibliography
Dale H. Bestterfield “Total Quality Management” 3rd Edition’

Sarkar, Debashis, 2001. The Managers’ Handbook for Total Quality


Management, New Delhi: Beacon Books

Brocka, Bruce and Brocka, M. Suzanne Essentials of Quality


Management, Homeword, Illinois

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