TOTAL QUALITY

MANAGEMENT
Chapter 1 Evolution of TQM
 Total Quality
Management
Is a management approach to long-term success
through customer satisfaction

In TQM, all members of an organization participate

in improving processes, products, services, and the
culture in which they work.
 Evolution of TQM
Started in Japan after World War II
William Edwards Deming started it when they
focused on understanding the needs and
expectations of the customer.
The Americans initially ignored TQM because of the
lack of competition. They only applied it in the
1970s and 1980s when they were losing out on the
market to the Japanese
 Denition of Quality
businessdictionary.com: a measure of excellence or
a state of being free from defects, deficiencies and
significant variations. It is brought about by strict
and consistent commitment to certain standards
that achieve uniformity of a product in order to
satisfy specific customer or user requirements.
 Denition of Quality
Joseph Juran: the fitness for use.

ISO9000: The totality of features and characteristics

of a product or service, that bear on its ability to
satisfy a given or implied need.
 The Chain Reaction
Improves Quality Stay in business

Costs decrease due to fewer defects,

Provide more jobs
lesser rework, fewer delays and
beJer use of Men, Machine and
Materials

Improved Productivity

Capture the market with beJer

quality and lower prices
 Dimensions of Quality
1. Product Quality
a. Functionality refers to the core features and characteristics of a
product.
b. Reliability the probability that a product will perform its required
function, subjected to stated conditions, for a specific period of time.
Product Reliability is quantified as MTBF (Mean Time Between Failures) for
repairable product and MTTF (Mean Time To Failure) for non-repairable
product.
c. Usability the customer should be able to use the product without the
help of an expert.
d. Maintainability ease with which a product can be maintained to its
original condition. Maintainability is measured as Mean Time to Repair
(MTTR).
e. Efficiency the ratio of output to input. Ex. fuel efficiency in cars, battery
efficiency in gadgets, electricity consumption, etc.
f. Portability the ability of a product to be transferred from one
environment to another.
 Dimensions of Quality
2. Service Quality
a. Quality of Customer Service how a customer is received, treated,
handled and satisfied.
b. Quality of service design how a particular service is able to meet the
requirements of a customer. Ex. Bank software should be able to handle
all customer needs.
c. Quality of delivery speed, packaging, etc.
 Dimensions of Quality
3. Applicable to both products and services
a. Timeliness
b. Aesthetics
c. Regulatory requirements
d. Conformance to standards
 Quality Pays
(Read 1.8 Toyota overtaking Ford as top automobile
maker)
 Quality Gurus
1. Walter Shewhart advocated Statistical Quality
Control (SQC) and Acceptable Quality Level (AQL)
which is the foundation of todays Six Sigma. He
also developed the PDCA Cycle.

Six Sigma at many organizations simply means a

measure of quality that strives for near perfection. Six
Sigma is a disciplined, data-driven approach and
methodology for eliminating defects (driving toward
six standard deviations between the mean and the
nearest specification limit) in any process from
manufacturing to transactional and from product to
service.
 Quality Gurus
2. William Edwards Deming modified the PDCA
Cycle and Suggested the PDSA Cycle.

He also developed the 14 points for top management

for total quality management (discussed later in the
course)
 Quality Gurus
3. Joseph Juran - was credited for adding the human
dimension to quality management as he pushed for the
education and training of managers. Juran defined
quality as fitness for use in terms of design,
conformance, availability and full service.

Jurans Quality Planning Roadmap:

Identify your customers
Determine their needs
Translate them into your language
Develop a process, which are able to produce those
product features
Prove that the process can produce the product
Transfer the resulting plans to the operating forces
 Quality Gurus
4. Philip Crosby developed the 4 absolutes of
quality
a. Quality is conformance to requirements, nothing more nothing less, not
as goodness or elegance. Do it right the first time
b. Quality has to be achieved by prevention and not by appraisal. The first
step to defect and error prevention is to understand the process by
which a product is produced. Prevention is a knowledge issue for quality
focused workers.
c. The performance standard must be zero defect and not something
close to it. Anything other than zero defect is not acceptable.
d. The measurement of quality is the price of non-conformance, i.e. how
much the defects in design, manufacture, installation and service cost
the company. It is not indexes. Compare cost of conformance with cost
of non-conformance.
 Quality Gurus
4. Armand Feigenbaum said Quality is in its
essence a way of managing an organization. He
suggested the cycle time reduction methodology:

a. Define process
b. List all activities
c. Flowchart the process
d. List the elapsed time for each activity
e. Identify non-value adding tasks
f. Eliminate all possible non-value adding tasks
 Quality Gurus
4. Kaoru Ishikawa advocated the use of cause and
effect diagrams to provide true representation of
the organizational impacts and procedures.

Ishikawa or Fishbone
Diagram
 Quality Control (QC)
The operational techniques and activities that are
used to fulfill the requirements of quality. The 3 steps
of QC according to Juran:

1. Evaluate the actual performance

2. Compare actual performance to goals
3. Act on the difference
 Quality Assurance (QA)
All the planned and systematic activities implemented
within the quality system, and demonstrated as needed,
to provide adequate confidence that an entity will fulfill
the requirements of quality.
The purpose of the QA is to fulfill the quality requirements
of an entity, i.e. product or service, with adequate
confidence by the supplier. This requires implementation
of all activities planned for building quality into the
product. Such planned activities are to be implemented
systematically within the purview of a documented
quality system.
QA is a much more involved activity than QC. QC is part
of QA.
 Building Quality into
Products Requires:
Quality of Design refers to how well the product or
service has been designed to meet the current and
future requirements of customers and add value to
all stakeholders (customers, employees, suppliers,
owners, society)
Quality of Conformance indicates the consistency
in delivering the designed product which, in turn,
depends on the quality of all processes in the
organization.
 Building Quality into
Products Requires:
Quality of Performance an indicator of the
performance of the end product which depends
on the design (including reliability) and
conformance.
Quality of Service involves all activities that will
enable the customer to procure the product
without any hassles. Selling a product is not the end
of a business, rather, it is the quality of associated
services rendered that adds value to the product.
 The 4 Ms
Man
Machine
Materials
Methods

To consistently meet customer requirements, the

quality of the 4 Ms need to be ensured.
 Quality Planning (QP)
Refers to the activities that establish the objectives
and requirements for quality. It involves planning for
the following:
o Quality objectives to be met
o Specific QA/QC practices
o Resources needed
o Sequence of QA/QC activities

QC includes testing, inspection, examination and audit at various stages of a

product or service life cycle.
 Quality Improvement
A process that aims at attaining unprecedented levels
of performance, significantly better than the past
level.
 Quality Management
All activities of the overall management function
that determine the quality policy, objectives and
responsibilities and implement them by means such
as quality planning, quality control, quality
assurance and quality improvement within the
quality system which consists of:
Organizational structure
Procedures
Processes
Resources
 Quality Management
Quality system results:
The company must have an objective and policy for quality of the
products and services.
The organization should plan for meeting the objective
The plan should include QA,QC and methodology for improvement
There must be a clear organizational structure for building quality into the
products and services with necessary resources.
The quality management should be implemented formally with well-
defined processes and procedures and trained resources.
 Total Quality
Management (TQM)
Known in Japan as Company Wide Quality Control
(CWQC)

Later adopted by Americans and renamed it Total

Quality Management (TQM)
Evolution of TQM
Inspection

Pre-World War II
QC

QA Post-World War II

QM

TQM