What is TQM?

 Total Quality Management is a modern management concept. Successful organizations

worldwide has adopted it.
 A customer-oriented management philosophy and strategy that is centered on quality so as to
result in customer delight.
 TQM addresses the concepts of product quality, process control, quality assurance, and quality
improvement.

What does “Total” mean?

It implies that all members of the organization make consistent efforts to achieve the objectives
of customer delight through systematic efforts for improvement of the organization.

TQM EVOLUTION

 TQM was evolved in Japan after World War II.

 Edwards Deming – An American quality expert, helped the Japanese to apply the concepts of
TQM. They concentrated on customer satisfaction and focused on understanding customer needs
and expectations.
 The American industry ignored the development of TQM as it was still riding high because of
lack of competition.
 During 1980’s Americans were forced to look for new ways to survive in an environment of
deregulation, a growing trade deficit, low productivity, recession, downsizing, and increasing
customer marketing.
 Because of the problem aroused in their industry, the Americans finally realized the importance
of Deming’s teachings and started to apply them.
 Quality Gurus – the quality experts from many countries like Deming that spearheaded the
evolution of TQM.

DEFINITION OF QUALITY

 Joseph Juran – is one of the quality gurus who defined quality as “fitness for use”. The quality of a
product or service is its suitability for use by the customer. Quality does not mean an expensive
product; on a contrary, it is fitness for use of the customer.

 ISO (International Organization for Standardization) defined quality as: “The totality of features
and characteristics of a product or service, that is bear on its ability to satisfy a given or implied
need”.

CHAIN REACTION
 Improved quality

Costs decrease due to fewer defects, lesser rework,

fewer delays, and better use of Men, Machine, and Materials

Improve Productivity

Capture market with better quality

and lower prices

Stay in Business

Provide more Jobs

Japanese Chain Reaction

 Quality improvement results in improved productivity. By eliminating defects, non-value adding

activities and rework, additional resource capacity is created. Improved quality also reduces the
production cycle time and machine time. Less material is required due to reduction of scrap and
rework. All this leads to improved productivity and increased capacity. If this is used to expand
markets with lower prices, the company prospers and stays in business.

 Deming noted that this chain reaction was on the blackboard of every board meeting in Japan
from July onwards. The Japanese success is the best case study for TQM. Understanding the
chain reaction transformed them from a shattered economy as to a successful nation challenging
the USA after WWII.
DIMENSIONS OF QUALITY

Quality has many dimensions. The dimensions of quality are nothing, but the various features of a product
or service.

Product Quality

1. Functionality – refers to the core features and characteristics of a product. The definition of
functionality as per ISO/IEC 9126;1991: “A set of attributes that bear on the existence of a set of
functions and their specified properties. The functions are these that satisfy stated or implied
needs.

2. Reliability – A car shouldn’t breakdown often. This is the reliability attribute to quality.
Reliability is measured by mean (average) time between failures (MTBF). Reliability is an
indicator of durability of products.

3. Usability – The product should be easily usable. The customer should be able to use the product
easily without the help of experts. Each product should be made so that a person can use it with
minimum training. Usability can also be measured by the time taken for training an operator for
error-free operation of a system.

4. Maintainability – refers to the case with which a product can be maintained in the original
condition. Products may become defective while in use or in transit. It should be repairable so as
to retain the original quality of the product at the lowest possible cost, at the earliest possible
time. For software, maintainability is defined in the Standard ISO 9126:1991 as “A set of
attributes that bear on the effort needed to make specified modifications.”

5. Efficiency – this is applicable to most products. It is the ratio of output to input.

6. Portability – this is more important in the context of software. Portability is defined as a set of
attributes that bear on the ability of software to be transferred to from one environment to
another. They should be usable in many different machines without any problem.
SERVICE QUALITY

In availing a price, the customer interacts more with the service provider. The quality of service depends
on large extent of on understanding the correct requirements of the customer through such interactions.
Each service has to be designed specifically for the customer. Hence, quality of service design is an
important matter. Service delivery is another feature of service quality.

Additional features of service quality:

 Quality of Customer Service

 Quality of Service Design

 Quality of Service Delivery

1. Quality of Customer Service. Customer service delivery is very important in every business. In
a service industry, meeting customers and finding out their implied requirements is more
challenging. Therefore, ability to satisfy customer depends on the quality of customer service.
This include but not limited to:

 How well the customer is received?

 How well the implied requirements are elucidated?

 How well the customer is treated/handled/satisfied?

2. Quality of Service Design. Since services are usually made to order, it is important that the
service design as per the requirements of the specific customer.

3. Quality of Delivery. It is important in any sector, but more crucial in case of services. Defects on
the delivery should be zero to satisfy the customers.

Additional attributes of quality, which are applicable to both products and services:
 1. Timeliness – Delivery on schedule as per requirements of the customer is a must both in the
product sector as well as in the service sector. Any anticipated delay in schedule should be
communicated to customer well in advance.

2. Aesthetics – A product should not perform well but also appear attractive. Aesthetics may
include, but not limited to the appearance of the product, the finish, colour, etc.

3. Regulatory Requirements – Regulatory requirements as stipulated by the local and federal

government should be fulfilled by the products or services.

4. Requirements of Society – The products should be fulfil both the stated and implied requirements
imposed by society. To satisfy a customer, a product cannot be built in such a way as to violate
the requirement of society of a safe and healthy product.

5. Conformance to the Standard Product/Service – Should conform to the stated and implied
requirements of customers. They should conform to applicable standards, international standards,
national standards and industry standards.

EVOLUTION OF QUALITY

Quality has been evolving for decades. The contribution of American Quality Gurus to this evolution is
quite impressive. The concepts were initially experimented successfully in Japan by the American Quality
Gurus. In this section, we will look at the contributions of some of them.

1. Dr. Walter A. Shewhart (1891-1967)

 He worked in Western Electric Company and AT and T, USA.

 He advocated Statistical Quality Control (SQC) and Acceptable Quality Level (AQL). AQL is
the foundation of today’s six sigma.

 He is considered to be the father figure of SQC, and developed Control Charts for cycle for
continuous improvement which is in use even today.

 He is the author of the following books:

  Economic Control of Quality of Manufactured Product

 Statistical Method from the View Point of Quality Control

2. Deming W. Edwards(1900-1993)

 An associate of Shewhart, worked in Western Electric Company as a statistician.

 He was invited to Japan to lead the quality movement.

 He modified PDCA cycle of Shewhart to the Plan, Do, Study, and Act (PDSA) cycle.

 He also advocated extensive use of statistics and control charts and focused on product
improvement and service conformance by reducing variations in the process.

 He joined the US Census Bureau in the year 1993and proved that quality control methods
could lower costs even in an exclusive service organization.

 During the 1950’s Deming visited in Japan 18 times, held seminars and worked with
Japanese Union of Scientists and Engineers (JUSE).

 He had a speech on November 23,1980 in Paris.

3. Joseph M. Juran (1954)

 He also joined Western Electric Company and developed Western Electric Statistical Quality
Control Handbook

 JUSE invited him to Japan in 1954.

 He identified fitness of quality and popularized the same.

 Quality of Design – through market research, product and concept

 Quality of Conformance – through management manpower and technology

 Availability – through reliability, maintainability, and logistic support

 Full Services – through promptness, competence and integrity

4. Philip B. Crosby (1926)

 He was the Vice President of International Telephone and Telegraph (ITT)

 His 4 absolutes of quality are very relevant to TQM.

5. Armand V. Feigenbaum

 He was President of American Society of Quality Control (4961-1963).

 He said, “Quality is in its essence a way of managing the organization”.

 He suggested the following methodology for cycle time reduction.

 He coined the phrase “Total Quality Control”

6. Kaoru Ishikawa (1915-1989)

 A Quality Guru from Japan, he strongly advocated the use of cause and effect diagrams to
provide a true representation of the organizational impacts and procedures.

 He developed Fishbone/Ishikawa diagram for cause and effect analysis.

Other Quality Gurus include James Harington, Taguchi and Shingo.

QUALITY CONTROL (QC)

QC is defined as the operational techniques and activities that are used to fulfil the requirements for
quality. Juran gives 3 steps of QC:

1. Evaluate actual operating performance.

2. Compare actual performance to goals.

3. Act on the difference.

QUALITY ASSURANCE (QA)

Assurance – All the planned and systematic activities implemented within the quality system, and
demonstrated as needed to provide adequate confidence that an entity will fulfil the requirements for
quality.

The purpose of QA is to fulfil quality requirements of an entity; i.e. product or service with adequate
confidence by the supplier. This requires implementation of all the activities planned for building quality
into the product. Such planned activities are to be implemented systematically within the preview of a
documented quality system. Building quality into the product requires the following:

 Quality of Design – refers to how well the product/service has been designed to meet the current
and future requirements of customers and add value to all the stakeholders. The stakeholders for
any organization are:

1. Customers

2. Employees

3. Suppliers

4. Owners

5. Society

 Quality of conformance – it indicates the consistency in delivering the designed product. It

involves all the activities that will ensure the conformance of the products to its requirements
consistently.

 Quality of Performance – it is the indicator of the performance of the end product. This in turn
depends on the quality of design (including the reliability of the product) and quality of
performance.

 Quality of Service – involves all activities that will enable the customer to procure and use the
product without any hassles.

QUALITY PLANNING

QP refers to the activities that establish the objectives and requirements for quality. QP involves planning
for the following with regards to a product or service or project on a contract:
  Quality objectives to be met

 Specific of QA/QC practices

 Resources needed

 Sequences of QA/QC activities

QUALITY IMPROVEMENT

This process aims at attaining unprecedented levels of performance, which are significantly better than
the past level.

STRATEGIC PLANNING

Strategic planning involves making plans for the following in particular:

 Business value

 Involvement in machinery and equipment

 Manpower to be hired

 Budget

 Product diversification

 Markets to be served

 Strategies for improving profits, etc.

QUALITY MANAGEMENT

According ISO 9000 Standards, QM comprises “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 with the quality
system”.

Just-In-Time (JIT)
This means that no stage of manufacturing nobody or nothing waits for anything. This is to ensure that
there is no wastage of machinery, materials and manpower. JIT focusing on right scheduling so as to keep
inventory as low as possible.

ISO 9000 Standards

ISO 9000 Standards were released for the first time in the year 1987 to bring in system for quality in
every organization. The standard was revised in 1994 and later in the year 2000. The standards in the
latest version advocates TQM and continuous process improvement.

Deming Award for Quality

To express their gratefulness, Japanese instituted a Quality Award in the name of Deming in the year
1951. The award is now given not only to companies in Japan, but even overseas who excel in quality.

CHAPTER I
TQM (Total Quality Management)
EVOLUTION

SUBMITTED BY:

DHALIA O. CABURNAY

(III-BSBA-F)

SUBMITTED TO:

MS. SHEENA DORIA

Adviser