Chapter 1

Overview of Total Quality Management

What is Quality ?
Definitions of Quality
• Quality means different to different people:

• 1. Customer-Based: Fitness for use, meeting customer expectations.

•
• 2. Manufacturing-Based: Conforming to design, specifications, or requirements. Having no defects.
•
• 3. Product-Based: The product has something that other similar products do not that adds value.
•
• 4. Value-Based: The product is the best combination of price and features.
•
• 5. Transcendent: It is not clear what it is, but it is something good...
Perspectives in Defining Quality
1. Transcendent (Judgmental) Perspective
2. Product Perspective
3. User Perspective
4. Value Perspective
5. Manufacturing Perspective
6. Customer Perspective
1. Transcendent (Judgmental) Perspective
• Quality is both absolute and universally recognizable, a mark of
uncompromising standards and high achievement
• Examples of products/services associated with an image of
excellence
• watches, Rolex
• hotels, Ritz-Carlton
• automobiles, Lexus
• Rolex
o Swiss luxury watchmaker
o London, England in 1905
o Largest single high end watch brand
o first watchmaker to earn chronometer certification for a wristwatch, 1910
o first waterproof wristwatch "Oyster (1)", 1926
o first wristwatch with an automatically changing date on the dial “Dayjust (2)”, 1945
o first wristwatch case waterproof to 100 m (330 ft), 1953
o first wristwatch to show two time zones at once (GMT Master (3), 1954
o first wristwatch with an automatically changing day and date on the dial, 1956
o ranked 64th of the world's most powerful global brands (Forbes’ The World's Most Valuable
Brands )
The Ritz-Carlton

o American luxury hotel chain

o “King of hoteliers and hotelier to kings” redefined luxury accommodation in Europe
o Well-known customer/ employee-centered motto, "We are Ladies and Gentlemen Serving Ladies
and Gentlemen”
o Earned two Malcolm Baldrige National Quality Awards
o Featured on Zagat Survey Top Lists for dining, hotels and service
o Corporate Hotelier of the World Ishikawa Medal for contributions to the Quality movement
o Creation of The Ritz-Carlton Learning Institute and The Ritz-Carlton Leadership Center
Lexus
o Luxury vehicle division of Japanese automaker Toyota
o In the 2000s, Consumer Reports named Lexus among the top five most reliable brands in
its Annual Car Reliability Surveys of over one million vehicles across the US
o In 2009, ranked among the 10 largest Japanese global brands in market value
o Lexus LS 500 was named 2017 EyesOn Design Award for Design Excellence – Interior
Design at the 2017 North American International Auto Show (NAIAS)
o Ranked highest among all luxury nameplates in the 2018 J.D. Power US Vehicle
Dependability Study (VDS), for the 7th consecutive year
o The J.D. Power VDS measures the number of owner-reported problems during the third year of
vehicle ownership, Overall dependability with a lower score reflects higher quality)
2. Product Perspective
• Quality is related to the quantity of some product attributes

• The larger numbers of product attributes are equivalent to higher

quality
• Higher thread count of a shirt, higher shirt quality
• Higher number of features in an automobile, higher automobile
quality
 THREAD COUNT
(Philippe Perzi Vienna)
• Must-Have Car Features (consumerreports.org)
• Comfortable seats
• Power driver’s seat with height-adjustable lumbar support
• Forward-collision warning
• Automatic emergency braking
• Backup camera
• Rear cross-traffic alert
• Blind-spot monitoring
• Apple CarPlay and Android Auto
• Wi-Fi, Bluetooth connectivity, Voice controls and USB ports
• 360-degree surround-view camera systems
• Head-up displays
• Heated seats and steering wheel
• Dual-zone automatic climate control
• Automatic high beams
• Keyless entry
3. User Perspective
• Quality is fitness for intended use, or how well the product
performs its intended function

• Automobile (car) as a means of transportation

• Lexus LS 500 and Toyota Vios
• Lexus LS 500, preferred with luxury amenities
• Toyota Vios, if with usual amenities
Means of
Transportation
Means of communication
4. Value Perspective
• Quality is based on value, the relationship of product benefits to
price

• Customer benefit package (quality, price and competitive

offerings)
• A quality product provides similar benefits like the competing products a
lower price or greater benefits at a comparable price
• Example: generic pharmaceuticals/medicines
5. Manufacturing Perspective
• Quality is the conformance to specifications

• Specifications- targets and tolerances determined by designers of

goods and services
• Targets- nominal/ideal specifications
• Tolerances- allowable variations from the targets
6. Customer Perspective
• Quality as the totality of features and characteristics of a
product/service that bears on its ability to satisfy given needs
(American National Standards Institute and American Society for
Quality, 1978)

• Late 1980s, it’s the meeting or exceeding customer expectations

• Consumers- the ultimate customer, purchaser and user of
products/services

• External customers- the organizations that products/services flows

through of which adds some value to the products/services

• Internal customers- the one who receives goods and services from
suppliers within the organization
• Consumers-

• External customers-

• Internal customers-
What is Total Quality Management?
▪ TQM is the enhancement to the traditional way of doing
business.
▪ It is a proven technique to guarantee survival in the world-
class competition.
Analyzing three words (TQM), we have:

Total—Made up of the whole

Quality—Degree of excellence a product or service
provides
Management—Act, art, or manner of handling,
controlling, directing, etc.
Total Quality Management
▪ TQM is defined as both philosophy and a set of guiding principles that
represents the foundation of a continuously improving organization.
▪ It is the application of quantitative methods and human resources to
improve all the processes within an organization and exceed
customer needs now and in future.
▪ TQM integrates fundamental management techniques, existing
improvement efforts, and technical tools under disciplined approach.
Antecedents of Modern Quality Management
▪Guilds of Medieval Europe
(From the end of 13th Century to Early 19th Century)
▪The Industrial Revolution
(From the end of 17th Century to 1800s)
▪The World War II
(From 1938 to 1945)
▪Post World War Era
(After 1945)
Guilds of Medieval Europe
(From the end of 13th Century to Early 19th Century)
Guilds of Medieval Europe
Antecedents of Modern Quality
The Industrial Revolution
(From the end of 17th Century to 1800s)
▪ Craftsmanship

▪ The Factory System

▪ The Taylor System

Industrial Revolution: The Craftsmanship
Examples of crafts during the Middle Age
Initial Efforts in Quality, 1800-1900
Industrial Revolution (1800)
time saving mechanical devices
most goods were custom made
industrial activity underwent extensive
mechanization
Basic concept of interchangeable parts, emphasized on production
efficiency and decomposed jobs into smaller work tasks
 Factory Era (late 1800)
• use of standard machines for uniformed output
• when more workers labored in factories than on farms

Large textile machines

World War II
Post World War II
The Birth of Total Quality Management
The birth of the Total Quality Control in US was in direct response to a
quality revolution in Japan following WW-II as Japanese manufacturers
converted from Producing Military Goods for internal use to producing
civilian goods for trade.

At first Japan had a widely held reputation for shoddy exports, and their
goods were shunned by international markets. This led Japanese
organizations to explore new ways of thinking about quality.

And from here starts the era of “Quality Gurus”!

• Scientific Management Movement (1900)
• observation and use of measures
• Taylorism (from Frederick Winslow Taylor), a theory of
management that analyzed and synthesized workflows
• Under this, the work was split into small jobs and workforce
was trained to be master of those jobs
Thank You
Questions?