TQM 3-12-2022

TOTAL QUALITY MANAGEMENT
ABAYSN UNIVERSITY
MSPM CLASS
FALL 2022
Total Quality Management -4P 3C
Understanding Quality
• What is Quality?
• Definition
• The totality of features and characteristics of a product or service that bears
on its ability to satisfy given needs. (ANSI & ASQ)
• The totality of features and characteristics of a product or service that bear
on its ability to satisfy stated or implied needs (BS 4778)
• Quality should be aimed at the needs of the consumer, present and future
(Deming)
• The total composite product and service characteristics of marketing,
engineering, manufacture and maintenance through which the product and
service in use will meet the expectation by the customer (Feigenbaum)
• Fitness for purpose or use (Juran)
• Conformance to requirements (Crosby)
• a set of systematic activities carried out by the entire organization to
• effectively and efficiently achieve the organization’s objectives so as to
• provide products and services with a level of quality that satisfies
• customers, at the appropriate time and price. (JUSE)
• Product performance as per expectation
• Quality constitutes customer satisfaction & customer loyalty
• Measure Quality?
– Quantitative attributes
– Qualitative attributes
• WHY QUALITY?
– Customer
– Competition
– Markets / Industries
– Operations
– Regulations
– Benchmarking
– Globalization
– Emerging approaches (TQM, Six Sigma, BPR etc)
– Reputation (Good / Bad) (Local / International)
Reputation Drivers
 Quality – On Time & Cost Factor
 Reputation Change
 Reputation – Micro to Macro
 Learn & Apply Quality Techniques
• Quality & Reliability
– Product functioning satisfactorily over certain time
period
– Reliability – a performance parameter
• Satisfaction in ownership (antiques)
• From customer satisfaction to customer
delight (excellence)
• Advantages of Customer Loyalty
– Cost of retaining vs acquiring customer
– Impacts Profitability
– Referrals
– Improves profitability
• LOYALTY INDICATORS
– Entirely satisfied customer
– Customers recommending to others
– Repeat purchase
• Quality Breakdown
– Food, health, electronics, banking etc
• Acceptance of Failure
• Quality failure at gateway b/w organization and
customer (internal / external)
• Multiplier effect of failure
• End to End quality chain
• Continuous Improvement philosophy
• Customer Requirements
– Availability
– Delivery
– Reliability
– Maintainability
– Cost effective
• Marketing – The cross organizational interface
to meet/maintain/exceed quality
– Customer needs assessment
– Ability to meet customer needs
• Communication link affects flow of
information. This impacts product/service
process flow.
Quality Chain Questionnaire

• Capacity to execute quality chains
• QUALITY ASPECTS
– Quality of Design (Designed to product purpose)
– Quality of Conformance to Design
Quality of Design
• Customer needs vs allocable resources
• Post production quality check is in fact “defect
detection”
• Its ritual rather than quality management. So we need
prevention
• Focus on Input rather than output
• “Are we capable of doing the job correctly?”
• Voice of Customer
• Voice of Process
• Right Supplier + Correct Input = Correct Output +
Satisfied Customer (SIPOC)
• Are we doing the job correctly. If so then continue to
Monitor and Control
• SIPOC is primarily management process
• Quality must flow from strategy.
• Act of inspection is not quality control
• Organizational layers working in silos reap
little benefit from product testing
• Quality Control
– Activities and techniques employed to achieve and
maintain the quality of a product, process, or
service.
• Quality assurance
– Prevention of quality problems through planned
and systematic activities
• Thorough documentation
• Quality Management System
• Comprehensive Audit
• Understand product / service need
• Determine desired features, price, grade etc
• Conduct Market Research
• Strong communication between “Customers” &
“Suppliers”
– Promptness
– Clarity
– Accuracy
• Product / Service Acquisition Basic Parameters
– Performance attributes
– Aesthetic Attributes
– Regulatory / Standards’ Compliance
• “Customer” Feedback mechanism
• To improve monitoring & control
• To gauge customer experience / expectation
• Trained HR
• Pre-product launch checks
– Distribution setup, field staff, spare parts, capacity
to meet customer requirements etc…
• Customer Data Analytics for improved
Relationship Management (CRM)
– Brainstorming, Panel Groups, Surveys etc
Focus on Outward Assessment instead of obsession
for Inward Scrutiny
• QUALITY acts as common language for
improvement across all functions of an
organization
Model & Frameworks for TQM
• Strong Competition from Japan forced US to

adopt quality management methodologies
• US Pioneers in Quality Management
– Edwards Deming
– Joseph M Juran
– Philip B Crosby
1 Deming’s Philosophy
• Constancy of purpose towards product
improvement
• Adopt Philosophy. Mistakes, defects unacceptable
• Stop mass inspection. Statistical evidence of built-
in quality
• Don’t use Price tag to award business
• Mgt job to continuously work to find problems in
system
• Modern methods of On-Job Training
• Modern methods to supervise production staff,
with focus on quality
• Remove fear to gain effective staff output
• Remove inter-departmental barriers
• Remove numerical goals to find methods to
improve productivity level
• Remove numerical quotas as work standards
• Remove barrier b/w daily wager & his skill pride
• Education and Training
• Structure in top mgt for daily push on 13 points
2 JURANS METHODOLOGY
• Build awareness for need and opportunity for improvement
• Set improvement goals
• Organize to reach goals
• Provide training
• Execute projects to solve problems
• Report progress
• Give recognition
• Communicate results
• Keep score
• Make annual improvement part of system and processes
3 Phil Crosby (Four Absolutes & 14 Steps)

• FOUR ABSOUTES
• Definition – Conformance to requirements
• System – Prevention
• Performance standard – zero defects
• Measurement – price of non conformance
• 16 November 2017
• A rail company in Japan has apologized after one of its
trains departed 20 seconds early.
• Management on the Tsukuba Express line between
Tokyo and the city of Tsukuba say they "sincerely
apologize for the inconvenience" caused.
• In a statement,
the company said the train had been scheduled to lea
ve at 9:44:40 local time but left at 9:44:20.
• Many social media users reacted to the company's
apology with surprise.
• The mistake happened because staff had not checked
the timetable, the company statement said.
3 Phil Crosby – 14 steps
• Clarity – Mgt is committed to quality
• Quality Improvement Team (members from each
department)
• Current & Potential problem points location
• Evaluate cost of quality and explain its use as
mgt tool
• Raise quality awareness and employees concern
• Take actions to correct problems identified in
previous steps
• Establish committee for zero defects program
• Train supervisors to execute their part of
quality improvement program
• Hold “Zero Defects Day” to make employees
aware of “Change”
• Encourage employees to establish
improvement goals for themselves and groups
• Encourage employees to communicate
obstacles in attaining improvement goals
• Recognize & appreciate those who participate
• Establish quality councils to communicate on
regular basis
• Do it all over again to emphasize that the
quality improvement program never ends
• Linking strategies/policies to TQM Approaches
• Promoted in UK through Deptt of Trade &
Industries (DTI) during 90’s
• Concepts adopted
– Quality Circles (teams)
– Problem Solving (tools)
– Statistical Process Control (tools)
– ISO 9000 (system) (Origin 1947)
– Culture, Communication & Commitment
Quality Frameworks Implementation
• Frameworks applied as
– Basis for awards
– Basis for self assessment
– Basis for prescription (what to do) model
• Deming Prize (Japan Based)
• Deming’s Guidelines
• No Easy success
• Solving problems presented by others is not enough
• Self challenging goals & work towards achievement
(constantly)
• Transform & improve business management
• Malcolm Baldrige National Quality Award

• Presented by President of USA
• Focus on
– Recognizing quality as culture change agent
– Internal / external behavior change
– Quality Assurance
– Process Control
– Share best practices information
– Visionary Leadership
– Customer driven excellence
Baldrige Criteria for Performance Excellence Framework

European Foundation for Quality Management

• Introduced in Europe in 90’s
• Business results included to excellence model
• People talent emerges through processes
• Quality frameworks have grown from Quality
Excellence to Business Excellence
EFQM Excellence Model

Simple Continuous Improvement Model

• 4-Ps & 3-Cs Model

Leadership & Commitment
• Fallacy of “Quality is visible”
• Cost of rectifying defective work
• Cost reduction vs Quality
• TQM improves organization’s competitiveness,
effectiveness, flexibility
• TQM helps plan, organize, understand, execute
each activity
• TQM concepts applicable across industries
• Problem prevention attitude required
• Remove ‘Inspection – Rejection’ Syndrome
• Scale of Operations vs Cost of TQM System
– Estimate cost of defects, wastage, complaints
– Is quality at design stage up to mark?
– Is QMS up to mark?
– Is HR adequately trained to avoid errors?
– Is procurement based on supplier’s TQM approach
– Is JD of HR in line with QMS?
– Annual data of Errors, defects, wastage
• Supply Chain wide QMS
• Commitment to shared values and goals
• Leadership accepts responsibility
• CEO primarily responsible for QMS
• Example: 3 Mile Island Pennsylvania Nuclear
Reactor Disaster. Auxiliary coolant system valves
replacement while reactor was operating
• Hubble Telescope – Good reading from flawed
telescope
• IPhone 4 – Call dropping. Signal interruption due to
product flaw
• Competence Fit & Value Fit HR
• Quality Policy
– Identify customer needs
– Ability to economically meet the needs
– Quality procurement
– Shared value by suppliers
– Prevention rather than detection
– Training HR
– Gauge customer satisfaction
– QMS review
• Creating Change Culture
– Guiding philosophy,
– core values, beliefs,
– Purpose
• Control
– Information / feedback to keep all functions as per
approved guidelines
• Problem situations
– Under-rewarded for optimal performance
– (over)rewarded for optimal/sub-optimal performance
– Self-target setting vs target setting by senior mgt
• TQM is user-driven. Can’t be imposed from outside the
organization
• TQM is not cost-cutting or productivity improvement
device
• TQM changes attitude, develops culture
• Doing right the first time, every time
• Effective Leadership Requirements
1 Develop/publish clear corporate beliefs and
purpose - vision
2 Develop clear & effective strategies &
supporting plans
3 Identify CSFs and critical processes
4 Review management structure
5 Empowerment (effective employee participation
MISSION IN ACTION
• Attitudes
– Conduct of a person towards others
• Abilities
• Competence to conduct the deputed task
• Participation (EPDCA)
• Training employees to
– Evaluate situation
– Plan to achieve objectives
– Implement the plans
– Ensure that objectives are achieved
– Take corrective actions, if they are not doing so.
EPDCA Cycle
Policy, Strategy & Goals Deployment
• Integrate TQM into Strategy & Policy
• Affective communication of vision, values &
mission through strategic plan.
• Resources deployment priority
• Meet needs & expectations of stakeholders
• Evaluate organizational environment
• Determine key performance criteria
• Challenge - Align operations with strategy
• OPERATIONS & STRATEGY ALIGNMENT STEPS
STEP 1: Develop Shared Vision & Mission for
Organization / Business Unit
STEP 2: Develop Mission into CSFs
STEP 3: Define KPIs (aligned with Mission & CSFs)
STEP 4: Understand core processes & gain process
sponsorship
STEP 5: Breakdown main processes into sub-
processes, tasks & form improvement teams
STEP 6: Align process with people by deploying policy
STEP 1: Develop Shared Vision & Mission for

Organization / Business Unit
• Develop Vision Statement
• Develop Mission Statement
• Define strategic options
• Link strategy with processes, responsibilities
• Documented Mission – What are we here for?
What to achieve?
• Focus on specific competence & share with HR
• Mission Statement Qualities
– Understandable
– Communicable
– Believable
– Usable
• Mission expresses
• Organizational aspiration
• Criteria to judge actions
• Long Term perspective
• Short Term Mission for survival
• Mission contents
– Contribution of Business entity
– Broadly define business needs to be met
– Specific competency (or advantage)
– Future direction
• It should define role of organization, carry worth,
adoption by employees, makes sense to external
stakeholders, maintain constancy of purpose
VISION FRAMEWORK
• Nike Vision
To bring inspiration and innovation to every
athlete in the world
• Nike Mission
Do everything possible to expand human
potential.
• PFIZER VISION
• Innovate to bring therapies to patients that
significantly improve their lives
• PFIZER PURPOSE
• Breakthroughs that change patients’ lives
• PFIZER’s “Purpose Driver”
• “what we need to achieve for patients and how we will go about
achieving those goals”
• FOUR VALUES OF “HOW”
• Courage. Breakthroughs start by challenging convention, especially in
the face of uncertainty or adversity. This happens when we think big,
speak up and are decisive.
• Excellence. We can only change patients’ lives when we perform at
our best together. This happens when we focus on what matters,
agree who does what and measure our outcomes.
• Equity. We believe that every person deserves to be seen, heard and
cared for. This happens when we are inclusive, act with integrity and
reduce health care disparities.
• Joy. We give ourselves to our work, but it also gives to us. We find joy
when we take pride, recognize one another and have fun.

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TOTAL QUALITY MANAGEMENT

Quality Chain Questionnaire

• Strong Competition from Japan forced US to

3 Phil Crosby (Four Absolutes & 14 Steps)

• Malcolm Baldrige National Quality Award

Baldrige Criteria for Performance Excellence Framework

European Foundation for Quality Management

EFQM Excellence Model

Simple Continuous Improvement Model

• 4-Ps & 3-Cs Model

STEP 1: Develop Shared Vision & Mission for

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