Total Quality Management (BAC 102)

Introduction to Quality Management Dr. Ernesto D. Dimaculangan dr_ernied@yahoo.com 0915-5023466

Modern Importance of Quality

The first job we have is to turn out quality merchandise that consumers will buy and keep on buying. If we produce it efficiently and economically, we will earn a profit, in which you will share. - William Cooper Procter
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What is Total Quality Management (TQM)

Total quality management is a management system for a customer focused organization that involves all employee in continual improvement of all aspects of the organization.

What is Quality Assurance

Quality assurance refers to any planned and systematic activity directed toward providing consumers with products (goods and services) of appropriate quality, along with confidence that products meets consumers requirements.

What is Total Quality Management (TQM)

TQM uses strategy, data, and effective communication to integrate the quality principles into the culture and activities of the organization.

The History of Quality

The quality movement can trace its roots back to medieval Europe, where craftsmen began organizing into unions called guilds in the late 13th century.

The History of Quality

GUILD
Any of various medieval associa tions, as of merchants or artisans, organized to maintain standards and to protect the interests of its members, and th at sometimes constituted a local governing body.

The History of Quality

Until the early 19th century, manufacturing in the industrialized world tended to follow this craftsmanship model.

The History of Quality

The factory system, with its emphasis on product inspection, started in Great Britain in the mid-1750s and grew into the Industrial Revolution in the early 1800s.

The History of Quality

In the early 20th century, manufacturers began to include quality processes in quality practices.

The History of Quality

In the early 1900, the work of Frederick W. Taylor, often called the father of scientific management led to a new philosophy of production- separate planning from the execution function.

The History of Quality

Leaders of the second Industrial Revolution, Henry Ford Sr., developed many fundamentals of what we now call total quality practices.

The History of Quality

Walter Shewhart, ushered in the era of statistical quality control (SQC), the application of statistical methods for controlling quality, use of control charts to identify quality problems.

History of Quality
After the United States entered World War II, quality became a critical component of the war effort: Bullets manufactured in one state, for example, had to work consistently in rifles made in another.

History of Quality
The US armed forces initially inspected virtually every unit of product; then to simplify and speed up this process without compromising safety, the military began to use sampling techniques for inspection,

History of Quality
Also, the USAF aided by the publication of military-specification standards and training courses used statistical process control techniques.

History of Quality
The birth of total quality in the United States came as a direct response to the quality revolution in Japan following World War II,. Major Japanese manufacturers converted from producing military goods for internal use to producing civilian goods for trade.

History of Quality
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.

History of Quality
Japanese welcomed input from foreign companies and lecturers, including two American quality experts: W. Edwards Deming, who had become frustrated with American managers when most programs for statistical quality control were terminated once the war and government contracts came to and end.

History of Quality
Joseph M. Juran, who predicted the quality of Japanese goods would overtake the quality of goods produced in the United States by the mid1970s because of Japans revolutionary rate of quality improvement.

History of Quality

Dr. W. Edwards Deming is known as the father of the Japanese post-war industrial revival and was regarded by many as the leading quality guru in the United States.

History of Quality
Joseph M. Juran made many contributions to the field of quality management. His book, the Quality Control Handbook, is a classic reference for quality engineers. He revolutionized the Japanese philosophy on quality management and in no small way worked to help shape their economy into the industrial leader it is today.

Joseph M. Juran
Dr. Juran was the first to incorporate the human aspect of quality management which is referred to as Total Quality Management.

History of Quality
Japans strategies represented the new total quality approach. Rather than relying purely on product inspection, Japanese manufacturers focused on improving all organizational processes through the people who used them.

History of Quality

As a result, Japan was able to produce higher-quality exports at lower prices, benefiting consumers throughout the world.

History of Quality
American managers were generally unaware of this trend, assuming any competition from the Japanese would ultimately come in the form of price, not quality.

History of Quality
In the meantime, Japanese manufacturers began increasing their share in American markets, causing widespread economic effects in the United States:

History of Quality
Manufacturers began losing market share, organizations began shipping jobs overseas, and the economy suffered unfavorable trade balances. Overall, the impact on American business jolted the United States into action

History of Quality
By the 1970s, U.S. industrial sectors such as automobiles and electronics had been broadsided by Japans high-quality competition.

History of Quality
The U.S. response, emphasizing not only statistics but approaches that embraced the entire organization, became known as total quality management (TQM).

History of Quality
By the last decade of the 20th century, TQM was considered a fad by many business leaders. But while the use of the term TQM has faded somewhat, particularly in the United States, its practices continue.

History of Quality
In the few years since the turn of the century, the quality movement seems to have matured beyond Total Quality.

History of Quality
New quality systems have evolved from the foundations of Deming, Juran and the early Japanese practitioners of quality, and quality has moved beyond manufacturing into service, healthcare, education and government sectors.

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Early Success
In 1984 the US government designated October as National Quality Month. In 1985, NASA announced an Excellence Award for Quality and Productivity. In 1987, the Malcolm Baldrige National Quality Award, a statement of national intent to provide quality leadership was established by the Act of Congress