OM TQM (HISTORY OF TQM)

Part 2
HISTORY OF TOTAL QUALITY MGT.
Total quality mgt. was the key concept of Armand
Feigenbaum’s 1951 book “Quality Control; Practice and
Administration,” and in the book, a chapter is titled as “Total
Quality Control.”
 Feigenbaum grabs on the idea that sparked many scholars
interest in the following decades, that would later be catapulted
from Total Quality to Total Quality Management.
 W. Edwards Deming, Joseph Duran, Philip B. Crosby and
Kaoru Ishikawa, Known as the big four are also contributed to
the body of knowledge of TQM.
TIMELINE OF TOTAL QUALITY
MANAGEMENT (TQM)
1920s  Some of the first seeds of quality management were planted as the principles of scientific management swept through U.S. industry.

 Businesses clearly separated the processes of planning and carrying out the plan, and union opposition arose as workers were
deprived of a voice in the conditions and functions of their work.

 The Hawthorne experiments in the late 1920s showed how worker productivity could be impacted by participation.

1930s  Walter Shewhart developed the methods for statistical analysis and control of quality.

1950s  W. Edwards Deming taught methods for statistical analysis and control of quality to Japanese engineers and executives. This can be
considered the origin of TQM.

 Joseph M. Juran taught the concepts of controlling quality and managerial breakthrough.

 Armand V. Feigenbaum’s book Total Quality Control, a forerunner for the present understanding of TQM, was published.

 Philip B. Crosby’s promotion of zero defects paved the way for quality improvement in many companies.

1968  The Japanese named their approach to total quality "companywide quality control." It is around this time that the term
quality management systems arises.

 Kaoru Ishikawa’s synthesis of the philosophy contributed to Japan’s ascendancy as a quality leader.

Today  TQM is the name for the philosophy of a broad and systemic approach to managing organizational quality.

 Quality standards such as the ISO 9000 series and quality award programs such as the Deming Prize and the
Malcolm Baldrige National Quality Award specify principles and processes that comprise TQM.

 TQM as a term to describe an organization's quality policy and procedure has fallen out of favor as international standards for quality
management have been developed. Please see our series of pages on quality management systems for more information.
 The American Society for Quality says that the term
TQM was used by the U.S Naval Air System Command “to
describe its Japanese-style management approach to quality
improvement.” This is consistent with the story that the
UNITED STATES navy personnel Research and Development
Center began researching the use of statistical process control
(SPC); the work of Juran, Crosby and Ishikawa; and the
philosophy of W. Edwards Deming to make performance
improvement in 1984. This approach was first tested at the
North Naval Aviation Depot.
WHO IS DR. ARMAND FEIGENBAUM?
Dr. Armand V. Feigenbaum, the developer of “Total
Quality Control” concept, was President and CEO of
General Systems Company, which he founded in 1968. In
2008, Dr. Feigenbaum was presented with the National
Medal of Technology and Innovation by President Bush at a
ceremony at the East Wing of the White House. The
National Medal is the highest honor for technological
achievement bestowed on America’s leading innovators.
 From 1937-1968, Dr. Feigenbaum grew from an entry-level
pre-college job to be the hands-on manager of quality as the
Company-wide Manager of Manufacturing Operations and
Quality Control at the General Electric Company (1958-68) in
New York City.
 He developed the “Total Quality Control” concept while
concurrently at GE. He introduced the concept first in an article
in 1946. In 1951, while a doctoral student at MIT, Dr.
Feigenbaum wrote the first edition of his book Total Quality
Control.
 He established the principles of Total Quality Management
(“TQM”), the approach to quality and profitability that has
profoundly influenced management strategy and productivity
in the competition for world markets in the United States,
Europe, Asia, Latin America and the Middle East.
 He wrote, “Total quality control is an effective system for
integrating the quality development, quality efforts of the
various groups in an organization so as the maintenance,
and quality improvement to enable production and service
at the most economical levels which allow full customer
satisfaction.”
THE ELEMENTS OF TOTAL QUALITY TO ENABLE A
TOTALLY CUSTOMER FOCUS (INTERNAL AND
EXTERNAL)
 Quality is the customer’s perception of what quality is,
not what a company thinks it is.
 Quality and cost are the same not different.
 Quality is an individual and team commitment.
 Quality and innovation are interrelated and mutually
beneficial.
 Managing Quality is managing the business.
 Quality is a principal.
 Quality is not a temporary or quick fix but a continuous
process of improvement.
 Productivity gained by cost effective demonstrably
beneficial Quality investment.
TOTAL QUALITY MANAGEMENT
 Is defined as both a philosophy and a set of guiding
principles that represent the foundation of a continuously
improving organization.
 Total quality MGT. is composed of three words.
 Total talks about a whole
 Quality as the degree of excellence a certain product or
service provide
 Management as an action, Art or manner of handling,
controlling, directing and etc.
 As a total the term TQM is the art of managing the whole to achieve
excellence in providing quality products and service.
THE GOLDEN RULE IN TQM

“Do unto others as you would

have them do unto you.”

Simply means to treat others the way

we want them to treat us.
 To provide better definition of quality,
it is necessary to understand the difference
between three other important quality ideas.

1. Quality Control
2. Quality Assurance
3. Total Quality
QUALITY CONTROL
 Is historically the oldest concept. It involves the
detection and elimination of components or final
products which are not up to standard.
 It is an after the event process concerned with detecting
and rejecting items. As a method of ensuring quality it
may involve a considerable amount of waste, scrap and
reworking.
 Quality control is usually carried out by professionals
known as quality controllers or inspectors.
 Inspection and testing are the most common methods of quality
control; and widely used in education to determine whether
standards are being met.
 QUALITY ASSURANCE
 It is before and during the event process. Its concern is to
prevent faults occurring in the first place.
 Quality is designed into the process to attempt to ensure that
the product is produced to predetermined specification.
 Quality Assurance is a means of producing defect and fault
free products. The aim, in the words of Philip B. Crosby, is
“zero defects.”
 QA is responsible in the workplace, usually working in cells
or teams, rather than the inspection, although inspection can a
role in quality assurance.
 The quality of the good or service is assured by there being a
system, which lays down exactly how production should take
place and as to what standards.
TOTAL QUALITY
 Is about providing the customer with what they want,
when they want it and how they want it.
 It involves moving with changing customer expectations
and fashions to design products and services which meet
and exceed their expectations.
 Only by delighting customers will they return and tell their friends
about it.
QUALITY MANAGEMENT
 Is using all the elements of management in order to
achieve quality product and quality services.
 It is the act of overseeing all activities and tasks that
must be accomplished to maintain a desired level of
excellence.
QUALITY DIMENSIONS
DAVIN GARVIN EIGHT DIFFERENT QUALITY
DIMENSIONS IN QUALITY IN GOODS
1. Performance
2. Features
3. Reliability
4. Durability
5. Conformance
6. Serviceability
7. Aesthetics
8. Perceived Quality
PERFORMANCE
 Is a measure of product’s primary operating
characteristics. Since performance can usually be
measured in specific quantitative terms, a product’s
performance characteristics are often compared and
ranked with those of the competition.
FEATURES
 Are the “bells and whistles” that are offered with a
product. While features are not the primary operating
characteristics of a product, they may, nonetheless, be
very important to the customer.
RELIABILITY
 It relates to the probability that the product will fail
within a specified time. It is often measured as the mean
time between failures or the failure rate per unit of time
or other measure of usage.
 High product reliability is important in such product as
airplanes , computers and copying machines.
DURABILITY
 It relates to the expected operational life of a product. In
some instances, like with light bulb, the filament
eventually burns out and the entire product must be
replaced.
CONFORMANCE
 A product’s conformance to design specifications is
primarily process oriented, in that it reflects how well the
product and its individual components meet the
established standards.
SERVICEABILITY
 It is concerned with how readily a product can be
repaired and the speed, competence and courtesy
associated with that repair. This dimension of quality is
sometimes overlooked in design stage.
AESTHETICS
 Is obviously a dimension of quality for which there us a
high degree of individual judgement. In fact, in terms of
aesthetics, good quality to one group of customers might
even be perceived as poor quality to another group.
Companies, therefore have an opportunity with this
quality dimension to seek out a very specific market
niche.
PERCEIVED QUALITY
 Is directly related to the reputation of the firm that
manufactures the product. Often, total information about
the various quality aspects of a product is not available ,
especially when it is anew product that is being
introduced for the first time.
PARASURAMAN, ZEITHAML AND BERRY (1986-1990) TEN
FACTORS OR DIMENSIONS THAT CONTRIBUTE TO THE
LEVEL OF SERVICE QUALITY A FIRM PROVIDES TO ITS
CUSTOMERS.

1. Tangibles
2. Reliability
3. Responsiveness
4. Competence
5. Courtesy
6. Credibility
7. Security
8. Access
9. Communication
10. Understanding the Customer
TANGIBLES
 It is the physical evidence of the service.
 For example:
The type of uniform a restaurants wait staff
wears and the cleanliness of the uniforms are some of the
tangibles that you observe when you go ot to eat.
RELIABILITY
 As previously described, reliability relates to the
consistency of performance and dependability of the
service.
RESPONSIVENESS
 It refers the willingness and readiness of employees to
provide service. How easily you get the attention of the
clerk at Department Store is a measure of
responsiveness.
COMPETENCE
 It relates to workers having the required skills and
knowledge to properly perform the service.
COURTESY
 It refers to the politeness, respect, consideration and
friendliness of contact personnel.
CREDIBILITY
 Refers to the characteristics of trustworthiness,
believability and honesty of the service worker.
 Do you feel more or less comfortable with paying for major repair
after you discuss it with your auto mechanic?
 How much you trust do you place in the sales clerk that is trying to

sell you a computer?

SECURITY
 Refers to the freedom from any danger, risk or doubt.
This is a particularly important dimension of
professional service quality.
 For example:
For legal services, the unable to assess the
appropriateness of the recommendations of their attorneys, but their
services are sought when there are significant risks involved.
ACCESS
 Relates to approachability and ease of contact.
 For example:
 How many times are you transferred when you call your credit card
company to resolve a billing program.
COMMUNICATION
 Is a very important dimension of quality in some
services. When you are in an emergency room with a
sick child, how well are kept informed of the process of
your child’s care?
UNDERSTANDING THE CUSTOMER
 Refers to how well the service worker makes the effort
to understand the specific needs of each customer.
QUALITY CHAINS
Quality chain is functional value chain of product or service
quality forming process.
QUALITY IN CUSTOMER – SUPPLIER
RELATIONSHIPS
Supply Chain Management is necessary for effective operations
and meeting customer needs that many businesses have recognized. A
Supply Chain includes the materials and other inputs purchased from
suppliers that they use in the production of goods and services, and
distribution of service to customers. Quality should start with the
customer, and extend back through the supply chain to the root sources
of procurement.
In Japanese, Quality is “okyakusama” which means both
“customer” and “honorable guest”. World –class organizations are
obsessed with meeting and exceeding customer expectations. Many
businesses traditionally have kept suppliers at arm’ length, but the
quality of output can be no better than the quality of the input.

The basic principle of total quality is developing strong and

positive relationships with the customers and suppliers within the supply
chain.
CUSTOMER-SUPPLIER RELATIONSHIPS AND
TOTAL QUALITY

From the TQ viewpoint, every company is part of a

long chain of customers and suppliers. Each company is a
customer to its suppliers and suppliers to its customers, so
it does not make sense to think of a company as only one
or the other. One implication of this is that your customer’s
customers are also your customers.
Companies should try to establish productive
relationships with their suppliers that they have with their
customers. By developing partnerships, they can build
relationships that will help them satisfy their shared
customers further along the customers- suppliers’ chain and
major disappearance from the Traditional Approach to
customer and supplier relationships (CSRs).
THE IMPORTANCE OF CUSTOMERS
It has evolved over the years, from the view of
customer as a buyer to increase profitability, to view of the
customer as an active partner and the focus of all quality
activities. Customer satisfaction translates directly into
increased profits. Satisfaction and loyalty are very different
concept, Satisfaction is important and modern firms need
to look further while Loyalty it’s a way of achieving
strong profitability and market shares that requires loyal
customers. And from the quote of Patrick Mehne, the chief
quality officer at The Ritz-Carlton Hotel Company:
“Satisfaction is an attitude: loyalty is a behavior”
 Poor-quality products and services lead to
customer’s dissatisfaction in form of complaints, returns,
and unfavorable word of mouth publicity and this
dissatisfied customers purchased from the competitors.
For many companies, “The Customer Comes
First” is the guiding principle. Customers are at the very
center of every Total Quality activities and recognized as
the guarantee of the organization’s continued existence.
Therefore, focus on customers, rather than internal
issues, is the foundation of the TQ approach to
management.
THE IMPORTANCE OF SUPPLIERS
The quality of goods and services received from suppliers, the
upstream portion of the supply chain, has significant effect on the
quality of goods and services that downstream customers receive.
Suppliers are those companies that provide the organization with goods
and services that help them to satisfy the needs of their own customers.
If a suppliers performance is of consistently high quality, its
customer can decrease or eliminate costly incoming inspections that add
no values to the product. For these reasons, many organizations have
increasingly demanded tangible progress in quality from all their
suppliers. Companies that do not accept this requirement are dropped
from suppliers lists. The importance of suppliers is at least as great
when they provide training, software, of other goods or services that do
not physically become part of the final product; they will influence its
quality nevertheless by shaping the quality of the processes used to
produce it.
PRINCIPLES FOR CUSTOMER-
SUPPLIER RELATIONSHIPS
THREE GOVERNING PRINCIPLE
DESCRIBE CSR UNDER TOTAL QUALITY
1. Recognition of the strategic importance of the
customers and suppliers;
It indicates that every organization must recognize
that its customers and suppliers are absolutely crucial to its
success. Customers must be at the center of the
organizational universe. Satisfying their needs leads to
repeat business and positive referrals as opposed to one-
shot business and negative referrals. Suppliers must also be
considered crucial to organizational success, because they
make it possible to create customer satisfaction.
2. The need to develop mutually beneficial relationship
between customers and suppliers;
The goal of building partnership with customers
and suppliers can be seen as an extension of the teamwork
principle that applies to all TQ activities and as recognition
that the needs of both partners must be satisfied if
productive long-term relationships are to be created.
3. Principle of effective CSR
They must be based on trust rather than suspension.
Aside from the obvious teamwork implications for
relationships based on trust versus suspension, monitoring
suppliers or customers behavior does not add any value to
the product.