1

APPROACHES TO TOTAL QUALITY

CHAPTER 2
Deming Management Philosophy
Demings 14 Points of Management
Juran Philosophy
Frameworks for Performance Quality and Excellence

Malcolm Baldridge National Quality Awards

Baldridge Criteria and Demig Philosophy
International Quality Awards Program

Deming Management Philosophy

W. Edwards Deming

(a) When people and organizations focus

primarily on quality, defined by the following
ratio,

QUALITY =

Results of work efforts

__________________________

Total Cost

quality tends to increase and costs fall over

time.

(b) However, when people and organizations

focus primarily on costs, costs tend to rise and
quality declines over time.

Theory of Profound Knowledge

4 Parts of Profound Knowledge
1. Appreciation of a System
2. Knowledge of Variation

3. Theory of Knowledge
4. Knowledge of Psychology

Demings 14 Points of Management

1. Create constancy of purpose for improving products and services.
2. Adopt the new philosophy.
3. Cease dependence on inspection to achieve quality.
4. End the practice of awarding business on price alone; instead,

minimize total cost by working with a single supplier.

5. Improve constantly and forever every process for planning,
production and service.

Demings 14 Points of Management

6. Institute training on the job.
7.

Adopt and institute leadership.

8.

Drive out fear.

9.

Break down barriers between staff areas.

10. Eliminate slogans, exhortations and targets for the workforce.

Demings 14 Points of Management

11. Eliminate numerical quotas for the workforce and numerical goals
for management.
12. Remove barriers that rob people of pride of workmanship, and
eliminate the annual rating or merit system.

13. Institute

vigorous

program

of

education

and

self-

improvement for everyone.

14. Put everybody in the company to work accomplishing the
transformation.

Jurans Philosophy
Joseph M. Juran

Involves adapting the existing

management system rather than
instituting an entirely new system.

He believes that 80% or more of the

defects produced by a system are
management controllable not
operator controllable.

Jurans Quality Trilogy

- shows how an organization can improve
every aspect by better understanding of
relationship

between

processes

that

plan, control and improve quality as

well as business results.

Jurans Quality Trilogy

QUALITY PLANNING

- provides a system that is capable of meeting

quality standards
e.g.

Identify who customers are

Determine the needs of customers

QUALITY CONTROL
- used to determine when corrective action is
required
e.g.

Evaluate Actual Performance

Compare Actual Performance w/ Quality goals

QUALITY IMPROVEMENT
- seeks better ways of doing things
e.g.

Establish project teams

Identify the improvement projects

Provide teams with resources, training, and
motivation

Quality Control

Users of Jurans Quality Trilogy

10

MICROSOFT

NOKIA

UNILEVER BEST FOODS

SAMSUNG

11

FRAMEWORK FOR
QUALITY AND
PERFORMANCE
EXCELLENCE

Framework for Total Quality Management

1. Identify the degree of commitment and key interests and list the long-term
changes required

2. Define the objectives of TQM

3. Identify resources available and develop understanding of organizational system
with quality system

4. Specify top management commitment through quality policies, procedures and

processes
5. Create company-wide awareness and participative work environment by
emphasizing customer-oriented values. Encourage quality commitment

12

Framework for Total Quality Management

6. Design action plans and develop specifics about future
7. Identify key issues and constraints on implementation and develop strategies for

implementation
8. Identify and allocate resources, execute plans and build momentum for change
9. Implement and monitor

10. Measure benefits in terms of increased customer satisfaction

11. Review and reward

13

14

PERFORMANCE EXCELLENCE
An integrated approach to organizational
performance management that results in:
Delivery of ever-improving value to customers
and stakeholders, contributing to
organizational sustainability
Improvement of overall organizational
effectiveness and capabilities
Organizational and personal learning

15

Framework of
Performance
Excellence

16

Malcolm Baldrige
National Quality
Awards

Malcolm Baldridge National Quality Awards

Presidential award created

by Public Law 100-107 in
1987
Highest level of national
recognition for
performance excellence in
the field of business, health
care, education, and
nonprofit sectors.
Traditionally presented by
the President of the United
States

A
B

C
D

17

18

HISTORY:
The award was named after Malcolm Baldrige
who was Secretary of Commerce from 1981 until
his tragic death in a rodeo accident in 1987
Established by Congress in 1987 for manufacturers,
service businesses and small businesses.
The

Malcolm

Baldrige

National

Quality

Improvement Act of 1987, was signed into law on

August 20, 1987
The education and healthcare categories were
added in 1999 while the government and nonprofit
category was added in 2007.

Baldridge Criteria for Performance Excellence

1. Leadership: How upper management leads the organization, and how the
organization leads within the community.

2. Strategic planning: How the organization establishes and plans to implement

strategic directions.
3. Customer and market focus: How the organization builds and maintains strong,
lasting relationships with customers.
4. Measurement, analysis, and knowledge management: How the organization uses
data to support key processes and manage performance.

19

Baldridge Criteria for Performance Excellence

5. Human resource focus: How the organization empowers and involves its workforce.
6. Process management: How the organization designs, manages and improves key

processes.
7. Business/organizational performance results: How the organization performs in
terms of customer satisfaction, finances, human resources, supplier and partner
performance, operations, governance and social responsibility, and how the
organization compares to its competitors.

20

21

22

Importance of Quality Awards

- Help measure the level on which
organizations gauge their performance

International Quality Awards

23

Private / Non-Profit Organizations

Baldridge National Quality Program - USA

European Foundation of Quality Management

Areas:

(EFQM) Excellence Award - Europe

Manufacturing

Criteria:

Education

Leadership

Healthcare

People Management

Policy and Strategy

Criteria:

Resource Management

Leadership

Process Management

Strategic Planning

Customer Satisfaction

Customer and Market Focus

Impact on Society

Measurement, analysis and knowledge management

Business Results

Human resource focus

Process Management
Business Results

International Quality Awards

24

Private / Non-Profit Organizations

Japan Quality Award Japan

Deming Prize Japan

Provided by the Japan Productivity Center for Socio-Economic

1st Major Management Award (most prestigious management

Development (JPC-SED)

award), created by Japanese Union of Scientists and Engineers

Goal:

(JUSE)

Encourage innovation and the transformation of

Goal:

management systems in Japan into customer-oriented

structure

To recognize contributions to quality and dependability

of products
Find out how well a company implements total quality

Highly based on the Baldridge National Quality Program

control by assessing its quality-assurance policies and

activities, and by measuring the company's results in
the areas of productivity improvement, quality
improvement, cost reduction, expanded sales, and
increased profits

International Quality Awards

25

Private / Non-Profit Organizations

Canada Awards for Excellence Canada

Other Awards include:

Criteria: Seven Drivers

Australian Business Excellence Awards

Leadership

Belgian Business Excellence Awards

Planning

China Quality Award

Customer Focus

Dutch Quality Assessment

People Focus

ESPRIX Swiss Award for Excellence

Process Management

Indonesian Quality Award

Supplier Focus

Iran National Quality Award

Organizational Performance

Philippine Quality Award

Singapore Business Excellence Award

Laid the foundation for Baldridge and European Quality

Awards

for a complete list:

https://en.wikipedia.org/wiki/List_of_national_quality_awards

26

ACTIVITY 1
Identify at least 2 from Demings 14 Points
of Management that you think is the most
important in an institution (big or small).

ACTIVITY 2

Explain.
If you were a TQM award winning body, what would be
your criteria in judging those involved? (at least 5)

Demings 14 Points of Management

1. Create constancy of purpose for improving products and services.
2. Adopt the new philosophy.
3. Cease dependence on inspection to achieve quality.
4. End the practice of awarding business on price alone; instead, minimize total cost by working with a single
supplier.
5. Improve constantly and forever every process for planning, production and service.
6. Institute training on the job.
7. Adopt and institute leadership.
8. Drive out fear.
9. Break down barriers between staff areas.
10.Eliminate slogans, exhortations and targets for the workforce.

11.Eliminate numerical quotas for the workforce and numerical goals for management.
12.Remove barriers that rob people of pride of workmanship, and eliminate the annual rating or merit system.
13.Institute a vigorous program of education and self-improvement for everyone.
14.Put everybody in the company to work accomplishing the transformation.

27

28

APPROACHES TO TOTAL QUALITY

CHAPTER 2
Abellanosa, Joshua
Agcang, Ruey
Historia, Vince
Legaspi, Emilany
BSIT-4

TQM TTH 3:00-4:30