Quality: Fundamentals of Management (MGT 162)

CHAPTER 9:
Quality
FUNDAMENTALS OF
MANAGEMENT (MGT 162)
o Define quality.
o Explain the dimensions of quality.
o Describe the perspectives of quality.
o The Consumer Perspective
LEARNING o The Producer Perspective
OBJECTIVES o Define Total Quality Management (TQM).

o Discuss TQM as tools for global
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 8 Ability
DIMENSIONS OF
QUALITY • How product looks, feels, tastes and
smells.
Aesthetic
• As seen by customer.
Perceived
Quality
Two Perspectives of Quality:
◦ Consumer
◦ Producer
Perspectives
PERSPECTIVES of Quality
OF QUALITY
Consumer Perspective Producer Perspective
-the product or service -the product or service
meets the expectations conforms to design
of the customer. specifications.
TOTAL QUALITY Definition of TQM
MANAGEMENT ◦ TQM is a strategic commitment by top management to

make quality a guiding factor in everything it does (Griffin,
(TQM) 2015).
Introduction to TQM
INTRODUCTION ◦ TQM - Creating an organizational culture committed to
the continuous improvement of skills, teamwork,
to processes, product and service quality, and customer
TQM satisfaction.
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.
Tools for Global Competition
◦ Customer-Driven Standards
◦ Management and Labor Commitment
◦ Organization and Coordination of Effects
◦ Employee Participation
TQM • External customer •develop an
as
• Internal customer organizational culture in
which all workers are
committed to work.
TOOLS for Customer-

Driven
Management
•to coordinate toward a
common goal
and Labor
GLOBAL Standards Commitment
COMPETITION Organization
Employee and
Participation Coordination
of Effects
• Quality Circle • Benchmarking
• Special-Purpose Team • Kaizen
◦ Competition
THE
◦ Productivity
IMPORTANCE OF
◦ Cost
QUALITY (or
TQM)
1. W. Edwards Deming
• perhaps the most prominent quality philosopher.
• created a 14-points plan to summarize his philosophy on
quality improvement.
• created The Deming Cycle which is a continuous cycle of
improvement which evolves around PDSA – Plan, Do, Study
and Act
2. Joseph Juran
ACHIEVING • observed that over 80 percent of quality defects are caused
by factors controllable by management.
QUALITY • developed a ‘quality trilogy’ -- planning, control, and
implementation.
(Prominent Quality 3. Armand Feigenbaum
• introduced the concept of total quality control (TQC).
Philosophers 4. Kaoru Ishikawa
• introduced two concepts of Quality:
• Quality Control Circles (QCC)
• Fishbone Diagram
5. Philip Crosby
• introduced the philosophy that “quality is free” and “zero
defect”.
• Do it right the first time, you WON’T pay anything to
fix them or make them over.
• 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.
• for every effect, there are likely to be several major
TOOLS of TQM : categories of causes for example the major causes could
Fishbone Diagram be Manpower (People), Methods, Materials, Machinery,
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
students
…cont… earn poor
grades?
Major Cause 3 Major Cause 4

• Fishbone Diagram with an example of Ball Bearing defects
Machinery Methods
Autofeed speed
Maintenanc
incorrect
e Problems Frequent
breakdowns
…cont… Power variability

-High
Manual feed
variability
Ball
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
Benchmarking of
Studying products, processes, or business performance
competitors in the same industry in the aspects of
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.

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CHAPTER 9:

OBJECTIVES o Define Total Quality Management (TQM).

• Supplement to a product’s basic function

• Product design and operating

• Speed and ease of repair.

MANAGEMENT ◦ TQM is a strategic commitment by top management to

TQM ◦ Make continuous improvement a way of life.

TQM • External customer •develop an

TOOLS for Customer-

Major Cause 1 Major Cause 2

Major Cause 3 Major Cause 4

…cont… Power variability

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