Chapter I- Overview of

ChapterManagement
Total Quality 2
Outline
 What is Quality? Definition of Quality
 Dimensions of product and service quality
 Basic concepts of TQM- Definition of TQM
 Contributions of Quality Gurus
 Barriers to TQM
 Brainstorming
 What do you understand by the concept of Quality?
 Quality-what is it?
 How do you understand quality?
 What comes to your mind when you see/hear this
word?
 Why and how quality is important?
 What are the driving forces?
 Why do quality matters?
 What is quality?
 Quality has been widely considered as a key element for
success in an organization

 Quality refers to meeting the needs and expectations of

customers

 Quality refers to certain standards and the ways and means

by which those standards are achieved, maintained and
improved.
 What is quality?
Definition of Quality…
Predictable degree of uniformity and dependability at low
cost and suited to the market -Deming

 Fitness for use-Juran

 Conformance to requirements – Crosby

 Minimum loss imparted by a product to society from the time

the product is shipped - Taguchi

The totality of characteristics of an entity that bear on its

ability to satisfy stated and implied needs – ISO
Definitions of Quality
 Quality means different to different people. There are different ways
of looking at quality definitions

• 1. Customer-Based/User Based Definition: Fitness for use, meeting customer

expectations(J.M. Juran).

• 2. Manufacturing-Based Definition: Conforming to design, specifications, or

requirements. Having no defects.

• 3. Product-Based Definition: The product has something that other similar

products do not that adds value.
Dimensions of Quality
 Dimensions of Product Quality
 1. Performance: primary product characteristics, e.g. picture
brightness in TV.

 2. Features: secondary characteristics, added features, e.g.

remote control

 3. Usability: ease of use with minimum training.

 4. Conformance: meeting specifications, industry standards,.

(E.g. emission norms)

 5. Reliability: consistency of performance over a specified time

period under specified conditions.
 Dimensions of Quality
 Dimensions of Product Quality…
 6. Durability: extent of useful life

 7. Maintainability/Serviceability: ease of attending to

maintenance, repairs.

 8. Efficiency: ratio of output to input. E.g. mileage, braking

distance, processing time.

 9. Aesthetics: sensory characteristics, e.g. appearance, exterior

finish, texture, color, shape, etc.

 10. Reputation: subjective assessment based of past performance,

brand image, industry ranking.
 11. Safety: in items like cookers, electrical items, cranes, etc.
 Dimensions of Quality
 Dimensions of Service Quality…
 1. Time: how much time a customer must wait .

 2. Timeliness: whether service will be performed when

promised.

 3. Completeness: whether all items in the order are included.

 4. Consistency/Reliability: consistent service every time, and

for every customer. Reliability of service.

 5. Accessibility/Convenience: ease of obtaining the service.

 Dimensions of Quality
 Dimensions of Service Quality…
 6. Accuracy: absence of mistakes.

 7. Responsiveness: quick response, resolution of unexpected

problems.

 8. Courtesy: cheerful, friendly service.

 9. Competency/Expertise: In professions like doctors,

lawyers, mechanics, etc.
 Dimensions of Quality
Product Quality Service Quality
Performance Time
Features Timeliness
Usability Completeness
Conformance Consistency
Reliability Accessibility/Convenience
Durability Accuracy
Maintainability/Serviceability Responsiveness
Efficiency Courtesy
Aesthetics Competency/Expertise
Reputation
Safety
 Why and how quality is important?
What are the Driving forces Why is quality important?
for quality? The success of any organization which
The customers/stakeholders: managed to achieve the quality control is
based on these key concepts:
 Strong competitions
 Ineffectiveness ♦Concern for the consumers
 Inefficiency
♦Continual improvement
♦Process control
 Strong demand for success ♦Taking preventive actions
rather than corrective actions
Total Quality Management(TQM)-What is TQM?
 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(or science) of planning, organizing.
directing, controlling, etc.

 Therefore, TQM is the art of managing the whole to achieve the

excellence.
Total Quality Management(TQM)-What is TQM?
 TQM is defined as both philosophy and a set of guiding principles
that
 represents the foundation of a continuously improving organization.

 TQM is the management approach of an organization,

 centered on quality,
 based on participation of all its members and
 aiming at long-term success through customer satisfaction. and
 benefits to all members of an organization and to society.- ISO

 TQM is a total system approach (not a separate area of program),

and an integral part of high level strategy.
 It works horizontally across functions and departments, involving all employees,
top to bottom, and
 exceeds backwards and forward to include the supply chain and the customer
chain.
Basic Concepts of TQM
 1.Management Involvement – Participate in quality program,
direct participation

 2. Focus on customer – who is the customer, voice of the

customer , do it right first time and every time.

 3. Involvement and utilization of entire work force – All levels

of management and work force of different departments

 4. Continuous improvement – Quality never stops, placing

orders, delivery, minimize wastage and scrap etc.

 5. Treating suppliers as partners – no business exists without

suppliers.
 6. Performance measures – creating accountability in all levels
Contributions of Quality gurus
What is a quality guru?

A guru, by definition, is a good person, a wise person and

a teacher.

A quality guru should be all of these, plus have a concept

and approach to quality within business that has made a
major and lasting impact.

These gurus have done, and continue to do, that

 The Era of Quality Gurus
There have been three groups of gurus since the 1940’s:

 Early 1950’s: Americans who took the messages of

quality to Japan( W.E. Deming, j.
Juran, Armand V Feigenbaum)

 Late 1950’s: Japanese who developed new concepts

in response to the Americans (Dr
Kaoru Ishikawa , Dr Genichi Taguchi , Shigeo Shingo)

 1970’s-1980’s: Western gurus who followed the

Japanese industrial success(p.B. Crosby;
T.Peters)
 Contributions of Quality gurus
W. Edwards Deming
 Deming is regarded as father of quality movement.

 Deming was the main figure in popularizing quality control in

Japan and regarded as national hero in that country.

 he stressed that the responsibility for quality remains with

top management.

 he emphasized on prevention rather than cure as the key to

quality.
 Contributions of Quality gurus
 W Edwards Deming placed great importance and responsibility on
management, at both the individual and company level, believing
management to be responsible for quality problems.

 It is the “85/15 rule,” which states that 85 percent of workers’

performance is determined by the system they work within and 15
percent is determined by their own individual effort.

 Management, not individual workers, is responsible for the system.

 Therefore, when seeking improvement in a process, managers

should first analyze and fix the system, not blame the workers
W
Contributions of Quality gurus
Edwards Deming 14 Principles- that can be applied to small or
large organizations in the public, private or service sectors:
 1) Create constancy of purpose towards improvement of product and service- with
the aim to become competitive and to stay in business
 2) Adopt the new philosophy(of customer satisfaction, continuous improvement,
defect prevention, management-labor cooperation, etc.)
 =>Organizations can no longer live/compete with commonly accepted levels of delay,
mistakes and defective workmanship
 3) Cease dependence on mass inspection
 (Managers must understand how variation affects their processes and take steps to
reduce the causes of variation. Workers must take responsibility for their own work).
 4) End the practice of awarding business on the basis of price-
 (Costs due to inferior materials / components increase costs in the later stages of
production)
 5) Improve constantly and forever the system of production and service .
 (Aim for small, incremental, continuous improvements-Find problems. It is
management’s job to work continually improve on the system
 6.Institute modern methods of training on the job-
 (Employees need the proper tools and knowledge to do a good job, and it is
management’s responsibility to provide these)=> Training not only improves quality and
productivity, but also enhances workers’ morale).
 7. Institute modern methods of leadership of production workers,
 Leadership should help people to do jobs better- (Leaders/ Managers should act as
coaches, facilitators and not as policemen)
W
Contributions of Quality gurus
Edwards Deming 14 Principles-
 8)Drive out fear, so that everyone may work effectively for the company-
 (Fear in work manifests as fear of reprisal, fear of failure, fear of change, fear of the
unknown. Fear encourages short-term, selfish thinking, not long term improvement for
the benefit of all)
 9)Break down barriers between departments-(Promote team work)
 10) Eliminate posters and slogans for the workforce asking for new levels of
productivity without providing methods-
 (Workers cannot improve solely through motivational methods when the system in which
they work constrains their performance. On the contrary, they will become frustrated,
and their performance will decrease further).
 11) Eliminate work standards that prescribe numerical quotas-
 (Numerical quotas reflect short-term perspectives and do not encourage long-term
improvement. Workers may shortcut quality to reach the goal. The typical MBO system
focuses on results, not processes, and encourages short-term behavior)
 12) Remove barriers for the right to pride of workmanship-
 (Treating workers as commodities; giving them monotonous jobs, inferior tools; poor
performance appraisals are common barriers for pride of workmanship)
 13) Encourage Education and self-Improvement for Every one
 14) Take action to achieve the transformation. Continually strive toward
improvement. Put every one the company to work to accomplish transformation
 (The TQ philosophy is a major cultural change, and many firms find it difficult. Top
management must take the initiative and include everyone in it).
Contributions of Quality gurus
Joseph M. Juran
 Joseph Juran is the other American quality pioneers
participated in quality .

 He invited to Japan in 1954 by the Union of Japanese Scientists

and Engineers (JUSE and provided a more strategic view that
expanded quality methods to all functions within an organization

 he defined quality as “fitness for purpose” =>Products or service

should meet its customer need.

 His definition of quality as “fit for customer use” changed the

focus from conformance to specification to MEETING CUSTOMER
EXPECTATIONS.
 His Juran Trilogy(Quality Planning, Quality Control and
Quality improvement) is also designed to reduce the cost of
quality over time
Contributions of Quality gurus
 Joseph M. Juran
 Juran Trilogy

02/14/24 23
 Contributions of Quality gurus
 Armand V Feigenbaum
 He was the originator of “total quality control”, often referred
to as total quality.
 integrated the various departments in an organization so that
quality became a way of life — ALL ELEMENTS OF AN
ORGANIZATION WORKING TOGETHER TOWARD THE
SAME GOALS.

 He defined it as:
 “An effective system for integrating quality development,
quality maintenance and quality improvement efforts of
the various groups within an organization,
 => so as to enable production and service at the most
economical levels that allow full customer satisfaction”.

 He saw it as a business method and proposed three steps to

quality:
• Quality leadership
• Modern quality technology
• Organizational commitment
Contributions of Quality gurus
 Japanese who developed new concepts in response to the Americans

 Dr Kaoru Ishikawa- made many contributions to quality, the

most noteworthy being his total quality viewpoint, company
wide quality control, his emphasis on the Ishikawa diagram and
the assembly and use of the “seven basic tools of quality”:

 Check sheets - how often it occurs or is done?

 Histograms -what do overall variations look like?
 Pareto analysis - which are the big problems?
 Cause and effect diagrams - what causes the problem?
 Scatter charts- what are the relationship between factors?
 Process control charts -which variations to control and how?

 Shigeo Shingo- Shingo is strongly associated with Just-in-Time

manufacturing,

 Dr Genichi Taguchi- Taguchi believed it is preferable to design

product that is robust or insensitive to variation in the
manufacturing process, rather than attempt to control all the
many variations during actual manufacture.
Contributions of Quality gurus
 Western gurus who followed the Japanese industrial success
 Philip B Crosby- Crosby is known for the concepts of “Zero Defects”,
and his quality improvement process is based on his four absolutes of
quality:

 Quality is conformance to requirements

 The system of quality is prevention

 The performance standard is zero defect

 The measurement of quality is the price of non-conformance



 Tom Peters - identified leadership as being central to the quality improvement

process,

 The new role is of a facilitator, and the basis is “Managing by walking about” (MBWA),
enabling the leader to keep in touch with customers, innovation and people, the three
main areas in the pursuit of excellence.

 He believes that, as the effective leader walks, at least 3 major activities are
happening:

 Listening - suggests caring

 Teaching - values are transmitted
 Facilitating - able to give on-the-spot help
Group Discussion
 1. Given the basic principles of TQM,
analyze to what extent your organization
practice TQM

 2. What are the major barriers/

challenges your organization currently
encountered to practice quality
management. How do the
management/employee react to it?
 Barriers to Total Quality Management (TQM)
 Once an organization embarks on TQM, the following are some of the
major obstacles encountered in implementation:
 Lack of management commitment: Management does not allocate sufficient
time and resources for TQM implementation.

 Inability to change organizational culture: Even individuals resist change;

changing an organization’s culture is much more difficult and may require
many years

 Improper planning: Absence of two-way communication of ideas during the

development of the plan and its implementation.

 Lack of continuous training and education.

 Inadequate use of empowerment and teamwork.

 Lack of employee involvement.

 Non-cooperation of first-line managers and middle management.

Barriers to Total Quality Management(TQM)…
 Lack of clarity in vision.

 Emphasis on short-term results.

 Setting of unmanageable, unrealistic goals.

 Motivating employees through fear of punishment.

 Failure to continually improve.

 Paying inadequate attention to customers.

 Inability to understand the changing needs and expectations of customers.

 Absence of effective feedback mechanism.