CHAPTER 9:

Quality

FUNDAMENTALS OF
MANAGEMENT (MGT 162)
 o Define quality.
o Explain the dimensions of quality.

LEARNING o Define Total Quality Management (TQM).

o Discuss TQM as tools for global
OBJECTIVES competition.
o Explain the importance of quality.
o Describe the tools of TQM.
DEFINITION ◦ The totality of features and characteristics of a
product or service that bear on its ability to satisfy
stated or implied needs (Griffin, 2015).
 • Product primary characteristic
Performance • e.g. speed of car, picture clarity of TV

• Supplement to a product’s basic function

Features e.g. car’s power windows.
THE
8 DIMENSIONS
OF QUALITY • Probability of functioning during
specified period.
Reliability

• Product design and operating

Conformance characteristics meet established
standards.
 • Measure of product life.
Durability

• Speed and ease of repair.

Service
THE Ability
8 DIMENSIONS
OF QUALITY • How product looks, feels, tastes and
Aesthetic smells.

• As seen by customer.
Perceived
Quality
 TOTAL Definition of TQM
QUALITY ◦ TQM is a strategic commitment by top management to
MANAGEMENT make quality a guiding factor in everything it does (Griffin,
2015).
(TQM)
 Introduction to TQM
TOTAL ◦ TQM - Creating an organizational culture committed to
QUALITY the continuous improvement of skills, teamwork,
MANAGEMENT processes, product and service quality, and customer
satisfaction.
(TQM)
 Four Principles of TQM
◦ Do it right the first time.
PRINCIPLES of ◦ Be customer-centered.

TQM ◦ Make continuous improvement a way of life.

◦ Build teamwork and empowerment.
 • Fishbone Diagram (Kaoru Ishikawa Diagram)
• Benchmarking
TOOLS of TQM
 • is the relationship between some “effect” and all the
possible “causes”. The effect or problem is stated on
the right side of the chart and the major influences or
causes are listed on the left.
TOOLS of TQM : • for every effect, there are likely to be several major
categories of causes for example the major causes could
be Manpower (People), Methods, Materials, Machinery,
Fishbone Diagram and others.
• After identifying the major cause, for each cause,
provide details on why does this major cause happens
 • basic diagram

Major Cause 1 Major Cause 2

effect /
supporting problem
ideas / details
for Cause 1 Why
TOOLS of TQM : students
earn poor
grades?

Fishbone Diagram
Major Cause 3 Major Cause 4
 • Fishbone Diagram with an example of Ball Bearing defects

Machinery Methods

Autofeed speed
Maintenanc
incorrect
e Problems Frequent

TOOLS of TQM : Power variability

breakdowns
Manual feed
-High
variability
Ball
Fishbone Diagram Bearing
Defects
Steel Scheduling
rods – problems
Needed rods off size
sizes not Poor
available Training

Materials Manpower
 Benchmarking:
• Process of comparing one’s own products, services, or
processes against those of industry leaders
• Process of finding the best available product features,
processes, and services.
• Using them as a standard for improving a company’s own
products processes and services.
 
There are three (3) types of benchmarking which consists of:
TOOLS of TQM : 1. Competitive benchmarking
Studying products, processes, or business performance
of competitors in the same industry in the aspects of
Benchmarking pricing, quality, and technical features.

2. Process benchmarking
Studying the aspects of distribution, order entry, or
employee training. It compares companies across any industry.

3. Strategic benchmarking
How a company competes and seeks the winning
strategies that have proven to bring successes.