Quality – is doing the right thing

right the first time. Doing it

better and better, better than
before and better than others.
Four Types of Quality Problems:
1. Doing the right thing the wrong way
2. Doing the wrong things the right way
3. Doing the wrong thing the wrong way
4. Doing the right thing right the second
time

All results in defects, scrap, unsold

stocks, excess inventories, high cost, lost
profits.
KAIZEN – is the process of non-
stop improvement of everything
we do.

“there is always a better way”

WHO IS THE CUSTOMER?

Are they the buyers, users,

decision makers or financier?
 A typical customer dining in a restaurant:
 Decides what to buy or order (decision maker)
 With his own money (financier)
 Purchases or orders the product himself (buyer)
 Then consumes it (user)

 In health care, who is the

 decision maker?
 the user?
 the financier?

 In training who is the

 user?
 decision maker?
 financier?
WHAT CUSTOMERS CARE ABOUT?

1.) order processing

queuing time
service delivery

2.) how he will be treated as he gives his order

 shove from one person to another?
 unnecessary forms?
 front liners knowledgeable and pleasant?
WHAT CUSTOMERS CARE ABOUT? (cont.)
 people’s attitude, efficiency, resourcefulness and
flexibility

“Underpaid employees will always provide bad

service; but overpaid employees will not
necessarily give good service”.

 the customer may not be interested if the

company is doing TQM or not. All TQM activities
and initiatives should result in better customer
service and products. Bottom line is will it make
the customer happier?
A total quality company is cost-conscious in a very
different way. It believes that to be cost competitive is
to be price competitive. By treating all costs as
potential profit, it does not consider cost as a
necessary component or basis of price. Cost becomes
“profit that is lost” or “an opportunity to cut price and to
increase sales that is lost.”

SALES = COST + PROFIT?

PROFIT = SALES – COST?

QUALITY DEFINED
In general sense:
quality may be defined as meeting or exceeding
the expectations of the customers

quality has multiple dimensions in the mind of

the customer
 conformance to specifications
 value (purpose viz price)
 fitness for use (how well product performs
intended purpose
 support
 Psychological impressions (image, aesthetics)
THE COST OF POOR QUALITY
1. prevention cost (preventing defects before they happen
 redesign process
 train employees
2. Appraisal cost (quality in operation)
3. Internal Failure Cost (results from defects that are
discovered during the production)
 yield losses (defective products scrapped)
 rework losses (correcting defects)
4. External Failure (discovered after the customer received
the products)
 rework
 potential loss sales
 warranty cots
 litigation
TOTAL QUALITY MANAGEMENT
 Concept or management system
emphasizing the fact that quality must be
designed and built into a product (defect
preventions than defect detection)
TOTAL QUALITY MANAGEMENT (cont.)
 A management philosophy embracing all
activities through which the needs and
expectations of customers and the
community, and the objective of the
organization are satisfied in the most
efficient and cost effective way by
maximizing the potential of all employees in
the continuing drive for improvement.
Hence, it is continuous improvement in
meeting our customer’s requirements at
optimum cost through harnessing everyone’s
commitment.
 GUIDING PRINCIPLES OF TQM

APPROACH - MANAGEMENT LED

SCOPE - COMPANY WISE
SCALE - EVERYONE RESPONSIBLE
PHILOSOPHY - PREVENTION NOT DETECTION
STANDARD - RIGHT FIRST TIME
MEASURE - COST QUALITY
THEME - CONTINUOUS IMPROVEMENT
 ELEMENTS OF TOTAL QUALITY

Total Quality

Quality Quality Quality

Product Process People
 QUALITY CHAIN REACTION
(Dr. E. Deming)

Improve Quality costs decrease because of

low rework, fewer mistakes,
fewer delays, snags, better
use of machine time, and
materials
productivity improve
capture the market with better
quality and price
stay in business
provide jobs and more jobs
 WHY LOOK AT PROCESSES?

 An organization is only as effective as its

processes.
 Talented and motivated people can improve
organization performance only as much as the
business processes flow.
 Strong people cannot compensate for a weak
processes.
 Management often relies on individual or team
heroics to overcome fundamentally flawed
processes.
The Eight Stages to Quality:

1. Quality Mission
Embrace a single and clean quality philosophy
“I will build a motorcar for the great multitude. It will be
large enough for the family, but small enough for the
individual to run and care for. It will be constructed of
the best materials, by the best men to be hired, after
the simplest design that modern engineering can
devise. But it will be so low in price that no man
making good salary will be unable to own one – and
enjoy with his family the blessings of hours of pleasure
in God’s great open spaces.”
- Henry Ford-
The Eight Stages to Quality: (cont.)

2. Quality Leadership
 Management should lead and show quality
leadership.
 It is easy for a leader to make inspiring
speeches but real quality leadership is
showing your commitment to quality by your
deeds and decisions.
3. Quality Policies
 Adopt all systems and structures to suit
total quality objectives. No stone should be
left unturned.
The Eight Stages to Quality: (cont.)

4. Quality Training
 Train all employees on quality continuously.
“If you think education is expensive, try
ignorance.”
5. Quality Empowerment
 Empower and trust all employees
 Good management consists in showing
average people how to do the work of
superior people.
 “I not only use all the brains I have, but all I
can borrow.”
The Eight Stages to Quality: (cont.)

6. Quality Behavior
 numbers 1 to 5 will lead to employees
showing quality behavior and working
habits (stops at red light because of the
policeman)
7. Quality Attitudes
 Internalization of quality behavior and
habits result in quality attitudes and values
(stops at red light not because of the
presence of policeman but because of his
genuine concern for his own safety and that
of other.
The Eight Stages to Quality: (cont.)

8. Quality Culture
 Every employee displays the same attitudes
and behaviors inside and outside work.
Quality is no longer a matter of choice but of
culture. Quality is transformed into a
religion.
DESIGNING AND DEVELOPING QUALITY
MANAGEMENT SYSTEM
1. The Preparation Process
 Corporate Plan/Strategic Plan
 Reorganization/Restructuring
 Review, improvement/development of
operation and management system
 Staff Development Program
 Setup Mechanism
 Steering Committee
 Quality Management Representative
 Chair for Internal Quality Audit
 Chair for Document Control
 Awareness Seminar on ISO
DESIGNING AND DEVELOPING QUALITY
MANAGEMENT SYSTEM (cont.)
2. QMS Design Proper
 Formulation of Quality Policy and Quality
Objective (viz 8 QM principles)
 Determining/Clarifying the Business
Process, Responsibilities and Interfaces.
 Preparing the Quality Manual
 Organizational Mandate, Structure
 Quality Policy, Objective
 Business Process/Scope of QMS
 Procedure Manual
 Training Staff for Implementation
DESIGNING AND DEVELOPING QUALITY
MANAGEMENT SYSTEM (cont.)
3. Installing and Operating the QMS
 Document and Record Control
 Internal Quality Auditing (or First Party
Auditing)
 Measurement, Analysis and Evaluation
 Pre-Assessment of QMS
 Management Review
DESIGNING AND DEVELOPING QUALITY
MANAGEMENT SYSTEM (cont.)
4. Applying for ISO Certification
 Negotiating for an External Certification
Body
 External Quality Audit
 Pre-Audit (optional)
 Adequacy Audit (focused on documentation
review)
 Compliance Audit (focused on the
compliance to ISO requirement)
 Certification
DESIGNING AND DEVELOPING QUALITY
MANAGEMENT SYSTEM (cont.)
5. Sustaining the QMS
 Maintaining and Surveillance of the QMS
 Internalizing the QMS
TQM puts quality in every concept of
management.

Five pillars of TQM (Creech, 1994)

1. Product
2. Process
3. Organization
4. Leadership
5. Commitment
ISO – International Organization for
Standardization
Eight Quality Management Principles:
1. Customer Focus
2. Leadership
3. Involvement of People
4. Process Approach
5. System Approach to Management
6. Continual Improvement
7. Factual Approach to Decision Making
8. Mutually Beneficial Suppliers Relationships
 ISO is a world-wide federation of
national standard bodies (ISO member
bodies)
 Originally published in 1987
 First revision was released in 1994
 Latest release was 2008
 The standards in the ISO 9000 family
describes what elements quality
systems should encompass but not how
a specific organization implements
these elements
 ISO viz APACC and MBQA
ISO APACC MBQA
(Quality Mgt. Principles (Criteria) (Criteria)
1. Customer Focus 1. Governance and 1. Leadership (120)
2. Leadership Management (100) 2. Strategic Planning (85)
3. Involvement of People 2. Teaching and Learning 3. Customer and Public
4. Process Approval (250) Focus (85)
5. System Approach to 3. Faculty and Staff (150) 4. Information and
Management 4. Research and Analysis (90)
6. Continual Development (100) 5. Human Resources
Improvement 5. Extension Consultancy Forms (85)
7. Factual Approach to Linkages (100) 6. Process Management
Decision Making 6. Resources (200) (85)
8. Mutually Beneficial 7. Support to Students 7. Organization
Supplier Relationships (100) Performance Results
(400)
 QMS CHAIN
Other
Supplier
Sources
of info. Transform into
what skills/occupation? producer
needs/
wants
Policies, Plans TESDA RO-PO TVI AC Firm/ Industry Consumer
(Standards (Training (Assessment (Employer) (user of
Development) Delivery) Delivery) goods/services)

Standards UTPRAS-QMS Training Assessment Manufacturing

Devt. Process Delivery Process Process

An An Activity Activity An An An An An An

QMS QMS QMS QMS QMS

ISO ISO ISO ISO ISO

Certification Certification Certification Certification Certification