CHAPTER 9:

QUALITY
 LEARNING OBJECTIVES

After completing this chapter, students

should be able to:
Define quality and TQM

Discuss the importance of quality

Explain the tools of TQM

 DEFINITION OF QUALITY

The totality of features and

characteristics of a product or
service that bear on its ability to
satisfy stated or implied needs.
-Griffin-

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 8 DIMENSIONS OF QUALITY

1. Performance
Product primary characteristics e.g., speed of car, picture clarity of TV.

2. Features
Supplement to a products basic function e.g. Car: power windows.

3. Reliability
Probability of functioning during specified period.

4. Conformance
Product design and operating characteristics meet established
standards.

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 8 DIMENSIONS OF QUALITY
5. Durability
Measure of product life.

6. Service Ability
After sales service e.g., speed and ease of repair.

7. Aesthetic
Refers to how product looks, feels, tastes and smells.

8. Perceived Quality
As seen by customers or customers perception.
 PERSPECTIVES OF QUALITY

Consumers Perspective
Quality can be defined as the degree to which the
product or service meets the expectations of the
customers.

Producers Perspective
Quality can be defined as the degree to which the
product or service conforms to design specifications.

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 DEFINITION OF TOTAL QUALITY
MANAGEMENT (TQM)

A strategic commitment by top

management to make quality a guiding
factor in everything it does.

-Griffin-

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 INTRODUCTION TO TQM

Total Quality Management = TQM

TQM- Creating an organizational culture
committed to the continuous improvement of skills,
teamwork, processes, product and service quality,
and customer satisfaction.
Four Principles of TQM
Do it right the first time.
Be customer-centered.
Make continuous improvement a way of life.
Build teamwork and empowerment.

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 TQM AS TOOL FOR GLOBAL COMPETITION

Customer-driven standards

Management and labor commitment

Organization and coordination of effects

Employee participation

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 TQM TOOL FOR GLOBAL COMPETITION

1.Customer-Driven Standards

External customer
User of an item who is not a part of the organization that
supplies the item.

Internal customer
User of an item who is a member of, or employee of the
organization that supplies the item.

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 TQM TOOL FOR GLOBAL COMPETITION

2. Management and Labor Commitment

Management must develop an organizational culture in

which all workers are committed to the philosophy.

If all parts of the organization are to coordinate toward a

common goal, then this goal must be:
Embraced by top leaders
Communicated by leaders throughout the organization
Have commitment to goal demonstrated through actions, policies
and decisions.

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 TQM TOOL FOR GLOBAL COMPETITION

3.Organization and Coordination of Effects

Benchmarking
The process of comparing ones own products, services, or
processes against those of industry leaders for the purpose
of improvement.

Kaizen
Japanese term referring to the total quality management
principle of continuous improvement.

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 TQM TOOL FOR GLOBAL COMPETITION

4.Employee Participation

Quality Circle
A work team that meets regularly to identify, analyze, and
solve problems related to its work area.

Special-Purpose Team
A temporary team formed to solve a special or
non-recurring problem.

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 THE IMPORTANCE OF QUALITY

Competition

Productivity

Cost

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 Achieving Quality
(Prominent Quality Management Philosophers)

W. Edwards Deming
Perhaps the most prominent quality philosopher, he
devised a 14-points plan to summarize his philosophy on
quality improvement.

Joseph Juran
Observed that over 80 percent of quality defects are
caused by factors controllable by management.
Developed a trilogy of planning, control, and
implementation.

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 Achieving Quality
(Prominent Quality Management Philosophers)

Armand Feigenbaum
Introduced the concept of total quality control.

Kaoru Ishikawa
Introduced quality control circles.

Philip Crosby
Introduced the philosophy that quality is free.

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 TQM Gurus
2.0 TQM Gurus' Ideas Ideas

Dr. Edward W. Deming

(managment philodsophy and
systems)

Dr. Joseph M. Juran

(quality trilogy)

Dr. Philip Crosby

(zero defects and cost of quality)

Dr. Kaoru Ishikawa

(simple tools, QCC, company-wide
quality)

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 The Deming Cycle

Plan

The
Act Deming Do
Cycle

The key is a
continuous cycle
Study of improvement
 TOOLS FOR TQM

FISHBONE
BENCHMARKING

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 TOOLS FOR TQM

1. FISHBONE (Ishikawa Diagram)

Diagram used to organize and show visually the
possible causes of a problem.

2. BENCHMARKING
Process of finding the best available product
features, processes, and services.
Using them as a standard for improving a
companys own products processes and services.

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 Major Cause Major Cause

Supporting
Ideas Why
students
earn poor
grades?

Major Cause Major Cause

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 BENCHMARKING

1. Competitive benchmarking
Studying products, processes, or business performance of 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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THE END