Total Quality Management

 TQM is a management philosophy, a paradigm, a continuous improvement approach to

doing business through a new management model.

 The TQM philosophy evolved from the continuous improvement philosophy with a focus
on quality as the main dimension of business.

 Under TQM, emphasizing the quality of the product or service predominates.

 TQM expands beyond statistical process control to embrace a wider scope of

management activities of how we manage people and organizations by focusing on the
entire process, not just simple measurements.

 Focuses on meeting owners’/customers’ needs by providing quality services at a cost

that provides value to the owners/customers

 Is driven by the quest for continuous improvement in all operations

 Recognizes that everyone in the organization has owners/customers who are either
internal or external

 Views an organization as an internal system with a common aim rather than as

individual departments acting to maximize their own performances

 Focuses on the way tasks are accomplished rather than simply what tasks are
accomplished

 Emphasizes teamwork and a high level of participation by all employees

TQM beliefs

 Presented here are universal total quality management beliefs.

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 Owner/customer satisfaction is the measure of quality

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 Everyone has owners/customers; everyone is an owner/customer

 Quality improvement must be continuous

 Analyzing the processes used to create products and services is key to quality
improvement
 Measurement, a skilled use of analytical tools, and employee involvement are critical
sources of quality improvement ideas and innovations

 Sustained total quality management is not possible without active, visible, consistent,
and enabling leadership by managers at all levels

 If we do not continuously improve the quality of products and services that we provide
our owners/customers, someone else will

Deming’s Fourteen
Points
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Benefits of TQM
 Reducing rework to zero is achievable: Using quality
management and CI to reduce rework to
nearly zero is an achievable goal. The negative cost of quality,
which includes errors, delays,
rework, etc., is estimated to be 30 percent of the cost of
construction. This figure does not include
dissatisfied owners/customers who do not come back for
repeat business.
Steps in implementing TQM

 1 Obtain CEO Commitment

 2 Educate Upper-Level Management

 3 Create Steering Committee

 4 Outline the Vision Statement, Mission Statement, & Guiding Principles

 5 Prepare a Flow Diagram of Company Processes

 6 Focus on the Owner/Customer (External) & Surveys

 7 Consider the Employee as an Internal Owner/customer

 8 Provide a Quality Training Program

 9 Establish Quality Improvement Teams

 10 Implement Process Improvements

 11 Use the Tools of TQM

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 12 Know the Benefits of TQM

 Obtain CEO Commitment, and

 2 Educate Upper-Level Management

 The first and second steps are . . .

 The first step in implementing TQM is to obtain the total commitment,

involvement, and leadership of the CEO and upper-level management.
  The second step is to teach the CEO and upper-level management how to conduct
the following:

Steps in implementing
TQM
CEO and senior management roles

 The roles of the CEO and Senior Management Team are to create an organizational
culture in which TQM can exist and flourish.

 An excellent culture that management can create for TQM to exist and flourish contains
the eight cultural elements indicated in the figure below.

1 Quality information must be used for improvement, not to judge or control people.

2 Authority must be equal to responsibility.

3 There must be rewards for results.

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4 Cooperation, not competition, must be the basis for working together.

5 Employees must have secure jobs.

6 There must be a climate of fairness.

7 Compensation should be equitable.

8 Employees should have an ownership stake

Create a Steering Committee

 Upon completion of upper management’s commitment and training, a steering

committee must be created to guide the company through the process of implementing
TQM.

 The role of the steering committee and the processes the committee follows are listed
here.

 Steering committee roles are . . .

 Review and evaluate customer surveys.

 Determine processes to be improved, based on customer and employee

recommendations, surveys, and a knowledge of existing problems.

 Appoint task process improvement teams and ensure they receive proper
training.

 Monitor process improvement.

 Oversee employee recognition for quality improvement.

 Communicate successes and progress.

 The steering committee handles a problem by . . .

 Problem is brought to the attention of the steering committee

 Steering committee forms a team to examine the process and make necessary
recommendations for improvement

 Team meets, reviews its mission, and determines how often it will meet. The
problem is assigned to the team following the procedures outlined in #10, The
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Structure Approach to Process Improvement.

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Outline the Vision Statement, Mission Statement, & Guiding Principles

 Establishing guiding principles

 In developing the fourth step, important principles to consider including in the

company’s vision statement, mission statement, and guiding principles are as follows:

 Owner/customer Satisfaction
  Improved Safety

 Elimination of errors and defects

 Doing things right, the first time

 Reputation as the best in the field

 Continuous Improvement

 Employee Empowerment

Staff Training

 The successful TQM company provides training to employees in the order illustrated in
the figure below.

 The training program must begin with upper management, then training must be
provided for the remaining management, and the in-house trainers and facilitators.

 It cannot be emphasized enough that if upper management is not trained and is not a
viable, visible participant from the beginning, then the program will not survive.

A Upper Management

B Remaining Management

C In-House Trainers & Facilitators

D Front-Line Supervisors

E Non-Supervisory Employees

F Team Training

G Training of Subcontractors &

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To train employees in the order
presented above, the following is
recommended.

 How are management and other employees trained?

 Select a consultant, community college, or other training

 Train management

 Select trainer, facilitator

 Send trainer, facilitator to training

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 Trainer trains front-line supervisors

 Trainer trains remaining employees

 Establish a training committee

 Orient short-term hires and new employees

 Facilitator or trainer provides team training

 Establish long-term, continuing program for training in quality management, leadership,
communication, technical skills

 Evaluate all training

 Improve training

 Establish quality improvement teams

 In establishing quality improvement teams, a smaller company might assign one quality
improvement team.

 Larger firms might assign several, possibly with one quality lead team as a guide for the
other teams.

 Areas where quality improvement teams could begin investigating for possible
improvement are:

 Increased Employee Value

 informed Employees

 Technical Training

 Quality Training

 Employee Suggestions

 Employee Participation

 Higher Quality of Artistry

 Personal Development

 Good QIT member qualities

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 Representatives who are selected to be quality-lead team members should possess the
following attributes:

 commitment to quality, customer satisfaction, and the success of the organization

 good communication and interpersonal skills

 a “big picture” view of the organization and of the industry

 a strong commitment to learning and change

 representation of a different area and level of the organization

 good organizational skills

 Quality improvement team tasks

 Quality improvement teams are active in the following task areas:

 Identify the customers of the process

 Determine customer expectations

 Flowchart the process

 Identify all of the inputs and interfaces

 Identify the output(s)

 Systematically review the procedures currently being used in the process

 Collect and analyze available quantitative data

 Determine the need for additional data

 Identify the problem(s)

 Determine the root cause of the problem

 Determine potential solutions

 Select a trial solution

 Present recommendations to the steering committee

 Implement the solution on a pilot-project basis

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 Analyze the data to discern if there has been improvement

 The quality improvement team (QIT) is responsible for planning and managing the
TQM

 Implementation process for the organization. The QIT is responsible for making
TQM happen.
  The QIT must take the lead in managing the cultural changes that TQM will
require.

 At least one member of the Senior Management Team (SMT) should be a member
of the QIT.

 The QIT reports to the Chief Executive Officer (CEO) and the SMT.

 The QIT and SMT should hold a joint meeting to review the TQM effort at least
quarterly.

ISO 9000

ISO 9000 is a family of standards for quality management systems. ISO 9000 is maintained by
ISO, the International Organization for Standardization and is administered by accreditation
and certification bodies. The rules are updated, as the requirements motivate changes over
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time.
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Some of the requirements in ISO 9001:2008 (which is one of the standards in the ISO 9000
family) include

 a set of procedures that cover all key processes in the business;

 monitoring processes to ensure they are effective;
 keeping adequate records;
 checking output for defects, with appropriate and corrective action where necessary;
  regularly reviewing individual processes and the quality system itself for effectiveness;
and
 facilitating continual improvement

Contents of ISO 9001

 A company or organization that has been independently audited and certified to be

in conformance with ISO 9001 may publicly state that it is "ISO 9001 certified" or
"ISO 9001 registered". Certification to an ISO 9001 standard does not guarantee any
quality of end products and services; rather, it certifies that formalized business
processes are being applied.
 Marketing departments take advantage of public confusion and ignorance about ISO
9000. Goods and services outstanding proclaim their ISO 9000 STATUS. Most
consumers suppose that ISO 9000 is the same as ISO 9001.
 Although the standards originated in manufacturing, they are now employed across
several types of organizations. A "product", in ISO vocabulary, can mean a physical
object, services, or software.
 Summary of ISO 9001:2008 in informal language
 The quality policy is a formal statement from management, closely linked to the
business and marketing plan and to customer needs. The quality policy is understood
and followed at all levels and by all employees. Each employee needs measurable
objectives to work towards.
 Decisions about the quality system are made based on recorded data and the system
is regularly audited and evaluated for conformance and effectiveness.
 Records should show how and where raw materials and products were processed, to
allow products and problems to be traced to the source.

 You need to determine customer requirements and create systems for

communicating with customers about product information, inquiries, contracts,
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orders, feedback and complaints.

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Why ICS?

 In today’s business climate, companies have realized that ISO 9001 certification and
industry specific quality management systems registration can add real value to their
organizations.  Rather than just a simple checklist, the auditing process can help
highlight weaknesses as well as strengths, which allows companies to continually
improve their processes to stay competitive.  ICS works with our clients to
 understand their business and unique practices to ensure our clients get the most
out of the auditing process.
 ICS also offers services and benefits that other registrars don't, like:
 Dedicated Account Managers - An Account Manager is assigned to each client to
provide a single point of contact.
 SWOT Analysis - A SWOT analysis is available with every audit which describes real
strengths, weaknesses, opportunities, and threats in terms executive management
can understand on top of the audit report which generally only explains compliance
to various parts of the ISO standards.
 Client Portal - A secure client portal is available to house client documents such as
audit plans, reports, and certificates for 24-hour access.
 Vibrant Auditor Mentoring & Customer Satisfaction Process - The professionals
delivering audits are key to our success.  We obtain our Clients' feedback on each
auditor and work hard to incorporate our Client's improvement suggestions.

Summary of ISO 9001:2008 in informal language

 When developing new products, you need to plan the stages of development, with
appropriate testing at each stage. You need to test and document whether the
product meets design requirements, regulatory requirements and user needs.
 You need to regularly review performance through internal audits and meetings.
Determine whether the quality system is working and what improvements can be
made. Deal with past problems and potential problems. Keep records of these
activities and the resulting decisions, and monitor their effectiveness (note: you need
a documented procedure for internal audits).
 You need documented procedures for dealing with actual and potential
nonconformances (problems involving suppliers or customers, or internal problems).
Make sure no one uses bad product, determine what to do with bad product, deal
with the root cause of the problem seeking and keep records to use as a tool to
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improve the system.

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1987 version

 ISO 9000:1987 had the same structure as the UK Standard BS 5750, with three
'models' for quality management systems, the selection of which was based on the
scope of activities of the organization:
  ISO 9001:1987 Model for quality assurance in design, development, production,
installation, and servicing was for companies and organizations whose activities
included the creation of new products.
 ISO 9002:1987 Model for quality assurance in production, installation, and servicing
had basically the same material as ISO 9001 but without covering the creation of new
products.
 ISO 9003:1987 Model for quality assurance in final inspection and test covered only
the final inspection of finished product, with no concern for how the product was
produced.
 ISO 9000:1987 was also influenced by existing U.S. and other Defense Standards
("MIL SPECS"), and so was well-suited to manufacturing. The emphasis tended to be
placed on conformance with procedures rather than the overall process of
management—which was likely the actual intent.

1994 version

 ISO 9000:1994 emphasized quality assurance via preventive actions, instead of just
checking final product, and continued to require evidence of compliance with
documented procedures. As with the first edition, the down-side was that companies
tended to implement its requirements by creating shelf-loads of procedure manuals,
and becoming burdened with an ISO bureaucracy. In some companies, adapting and
improving processes could actually be impeded by the quality system.[

2000 version

 ISO 9001:2000 combines the three standards 9001, 9002, and 9003 into one, called
9001. Design and development procedures are required only if a company does in
fact engage in the creation of new products. The 2000 version sought to make a
radical change in thinking by actually placing the concept of process management
front and center ("Process management" was the monitoring and optimizing of a
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company's tasks and activities, instead of just inspecting the final product). The 2000
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version also demands involvement by upper executives, in order to integrate quality

into the business system and avoid delegation of quality functions to junior
administrators. Another goal is to improve effectiveness via process performance
metrics — numerical measurement of the effectiveness of tasks and activities.
Expectations of continual process improvement and tracking customer satisfaction
were made explicit.
  The ISO 9000 standard is continually being revised by standing technical committees
and advisory groups, who receive feedback from those professionals who are
implementing the standard.`
 ISO 9001:2008 only introduces clarifications to the existing requirements of ISO
9001:2000 and some changes intended to improve consistency with ISO 14001:2004.
There are no new requirements. Explanation of changes in ISO 9001:2008. A quality
management system being upgraded just needs to be checked to see if it is following
the clarifications introduced in the amended version.

Certification

 ISO does not itself certify organizations. Many countries have formed accreditation
bodies to authorize certification bodies, which audit organizations applying for ISO
9001 compliance certification. Although commonly referred to as ISO 9000:2000
certification, the actual standard to which an organization's quality management can
be certified is ISO 9001:2000. Both the accreditation bodies and the certification
bodies charge fees for their services. The various accreditation bodies have mutual
agreements with each other to ensure that certificates issued by one of the
Accredited Certification Bodies (CB) are accepted worldwide.
 The applying organization is assessed based on an extensive sample of its sites,
functions, products, services and processes; a list of problems ("action requests" or
"non-compliances") is made known to the management. If there are no major
problems on this list, or after it receives a satisfactory improvement plan from the
management showing how any problems will be resolved, the certification body will
issue an ISO 9001 certificate for each geographical site it has visited.
 An ISO certificate is not a once-and-for-all award, but must be renewed at regular
intervals recommended by the certification body, usually around three years. In
contrast to the Capability Maturity Model there are no grades of competence within
ISO 9001.
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Auditing

 Two types of auditing are required to become registered to the standard: auditing by
an external certification body (external audit) and audits by internal staff trained for
this process (internal audits). The aim is a continual process of review and
assessment, to verify that the system is working as it's supposed to, find out where it
can improve and to correct or prevent problems identified. It is considered healthier
 for internal auditors to audit outside their usual management line, so as to bring a
degree of independence to their judgments.
 Under the 1994 standard, the auditing process could be adequately addressed by
performing "compliance auditing":
 Tell me what you do (describe the business process)
 Show me where it says that (reference the procedure manuals)
 Prove that this is what happened (exhibit evidence in documented records)
 How this led to preventive actions was not clear.
 The 2000 standard uses the process approach. While auditors perform similar
functions, they are expected to go beyond mere auditing for rote "compliance" by
focusing on risk, status and importance. This means they are expected to make more
judgments on what is effective, rather than merely adhering to what is formally
prescribed. The difference from the previous standard can be explained thus:
 Under the 1994 version, the question was broadly "Are you doing what the manual
says you should be doing?", whereas under the 2000 version, the question is more
"Will this process help you achieve your stated objectives? Is it a good process or is
there a way to do it better?". The ISO 19011 standard for auditing applies to ISO 9001
besides other management systems like EMS ( ISO 14001), FSMS (ISO 22000) etc.

Industry-specific interpretations

 The ISO 9001 standard is generalized and abstract. Its parts must be carefully
interpreted, to make sense within a particular organization. Developing software is
not like making cheese or offering counselling services; yet the ISO 9001 guidelines,
because they are business management guidelines, can be applied to each of these.
Diverse organizations—police departments (US), professional soccer teams (Mexico)
and city councils (UK)—have successfully implemented ISO 9001:2000 systems.
 Over time, various industry sectors have wanted to standardize their interpretations
of the guidelines within their own marketplace. This is partly to ensure that their
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versions of ISO 9000 have their specific requirements, but also to try and ensure that
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more appropriately trained and experienced auditors are sent to assess them.
 The TickIT guidelines are an interpretation of ISO 9000 produced by the UK Board of
Trade to suit the processes of the information technology industry, especially
software development.
 AS9000 is the Aerospace Basic Quality System Standard, an interpretation developed
by major aerospace manufacturers. Those major manufacturers include AlliedSignal,
Allison Engine, Boeing, General Electric Aircraft Engines, Lockheed-Martin,
 McDonnell Douglas, Northrop Grumman, Pratt & Whitney, Rockwell-Collins, Sikorsky
Aircraft, and Sundstrand. The current version is AS9100.
 PS 9000 is an application of the standard for Pharmaceutical Packaging Materials.
The Pharmaceutical Quality Group (PQG) of the Institute of Quality Assurance (IQA)
has developed PS 9000:2001. It aims to provide a widely accepted baseline GMP
framework of best practice within the pharmaceutical packaging supply industry. It
applies ISO 9001: 2000 to pharmaceutical printed and contact packaging materials.
 QS 9000 is an interpretation agreed upon by major automotive manufacturers (GM,
Ford, Chrysler). It includes techniques such as FMEA and APQP. QS 9000 is now
replaced by ISO/TS 16949.
 ISO/TS 16949:2002 is an interpretation agreed upon by major automotive
manufacturers (American and European manufacturers); the latest version is based
on ISO 9001:2000. The emphasis on a process approach is stronger than in ISO
9001:2000. ISO/TS 16949:2002 contains the full text of ISO 9001:2000 and
automotive industry-specific requirements.
 TL 9000 is the Telecom Quality Management and Measurement System Standard, an
interpretation developed by the telecom consortium, QuEST Forum. The current
version is 4.0 and unlike ISO 9001 or the above sector standards, TL 9000 includes
standardized product measurements that can be benchmarked. In 1998 QuEST
Forum developed the TL 9000 Quality Management System to meet the supply chain
quality requirements of the worldwide telecommunications industry.
 ISO 13485:2003 is the medical industry's equivalent of ISO 9001:2000. Whereas the
standards it replaces were interpretations of how to apply ISO 9001 and ISO 9002 to
medical devices, ISO 13485:2003 is a stand-alone standard. Compliance with ISO
13485 does not necessarily mean compliance with ISO 9001:2000.
 ISO/TS 29001 is quality management system requirements for the design,
development, production, installation and service of products for the petroleum,
petrochemical and natural gas industries. It is equivalent to API Spec Q1 without the
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Monogram annex.
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Debate on the effectiveness of ISO 9000

 The debate on the effectiveness of ISO 9000 commonly centers on the following
questions:
 Are the quality principles in ISO 9001:2000 of value? (Note that the version date is
important: in the 2000 version ISO attempted to address many concerns and
criticisms of ISO 9000:1994).
  Does it help to implement an ISO 9001:2000 compliant quality management system?
 Does it help to obtain ISO 9001:2000 certification?

Advantages

 It is widely acknowledged that proper quality management improves business, often

having a positive effect on investment, market share, sales growth, sales margins,
competitive advantage, and avoidance of litigation. The quality principles in ISO
9000:2000 are also sound, according to Wade, and Barnes, who says "ISO 9000
guidelines provide a comprehensive model for quality management systems that can
make any company competitive." Barnes also cites a survey by Lloyd's Register Quality
Assurance which indicated that ISO 9000 increased net profit, and another by Deloitte-
Touche which reported that the costs of registration were recovered in three years.
According to the Providence Business News , implementing ISO often gives the following
advantages:

 Create a more efficient, effective operation

 Increase customer satisfaction and retention
 Reduce audits
 Enhance marketing
 Improve employee motivation, awareness, and morale
 Promote international trade
 Increases profit
 Reduce waste and increases productivity
 However, a broad statistical study of 800 Spanish companies found that ISO 9000
registration in itself creates little improvement because companies interested in it have
usually already made some type of commitment to quality management and were
performing just as well before registration.

Problems
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 A common criticism of ISO 9001 is the amount of money, time and paperwork
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required for registration. According to Barnes, "Opponents claim that it is only for
documentation. Proponents believe that if a company has documented its quality
systems, then most of the paperwork has already been completed."
 According to Seddon, ISO 9001 promotes specification, control, and procedures
rather than understanding and improvement. Wade argues that ISO 9000 is effective
as a guideline, but that promoting it as a standard "helps to mislead companies into
 thinking that certification means better quality, ... [undermining] the need for an
organization to set its own quality standards." Paraphrased, Wade's argument is that
reliance on the specifications of ISO 9001 does not guarantee a successful quality
system.
 The standard is seen as especially prone to failure when a company is interested in
certification before quality. Certifications are in fact often based on customer
contractual requirements rather than a desire to actually improve quality. "If you just
want the certificate on the wall, chances are, you will create a paper system that
doesn't have much to do with the way you actually run your business," said ISO's
Roger Frost. Certification by an independent auditor is often seen as the problem
area, and according to Barnes, "has become a vehicle to increase consulting
services." In fact, ISO itself advises that ISO 9001 can be implemented without
certification, simply for the quality benefits that can be achieved.
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