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Total Quality Management

IME--457 (3,0)
IME

Text and References

Textbook
Total Quality Management by Besterfields et al, 4th
Edition, Pearson, 2015.

Reference Books:
Juran's Quality Handbook by Joseph A. De Feo,
McGraw-Hill, 2016.
Quality Management: Creating and Sustaining
Organizational Effectiveness by Donna C.S.
Summers, Second Edition, Pearson, 2015.

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Quality

Freedom from defects

Conformance to specifications

Fitness for the purpose or use

Superiority of something

Conformance to requirements

Satisfaction of customer

Performance/Expectations

Degree of excellence

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"the totality of features and characteristics of

a product or service that bears its ability to
satisfy stated or implied needs."

Reasons for Quality

Survival in competition

Own satisfaction

Productivity

Technology

Govt. regulations

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Types of Quality
(The Kano Model)

Performance Quality

The attributes expected by the customer

and result in customer satisfaction when
fulfilled and dissatisfaction when not fulfilled.

(spoken)

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Basic Quality

The attributes which are important but about

which the customer is unaware and will not
demand if asked.

(Unspoken)

Excitement Quality

The attributes not demanded by the

customer but generate an unexpected
pleasant surprise when provided.

(unspoken)

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Dimensions of Quality
(by David A. Garvin)
1. Performance
primary characteristics
2. Features
secondary characteristics
3. Reliability
consistency of performance over time
4. Conformance
meeting specifications or industry
standards

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5. Durability
useful life including repair
6. Serviceability
resolution of problems
7. Response
human to human interface
8. Aesthetics
sensory characteristics
9. Perceived Quality
repute, brand

Total Quality Management

Managing the whole to achieve

excellence

Integration of all functions and

processes of an organization in order to
achieve continuous improvement of the
quality of goods and services.

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Some Sayings

Right first time, every time

Prevention is better than detection

Zero defect

Even the best can be improved

Basic Concepts of TQM

1. Leadership Commitment and Involvement

2. Customer Satisfaction

3. Employee Involvement

4. Continuous Process Improvement

5. Supplier Partnership

6. Performance Measures for processes

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Obstacles

Lack of Management Commitment

Inability to Change Organizational Culture
Improper Planning
Lack of Continuous Training and Education
Incompatible Organizational Structure and
Isolated Individuals and Departments

Ineffective Measurement Techniques and

Lack of Access to Data and Results
Paying Inadequate Attention to Internal and
External Customers
Inadequate Use of Empowerment and
Teamwork
Failure to Continually Improve

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Benefits
Teamwork
Employee satisfaction
Better communication
Improved quality
Higher productivity
Customer satisfaction
Higher profitability
Increased market share

Leadership
Top management must realize importance of
quality
Quality is responsibility of everybody, but
ultimate responsibility is of CEO
Involvement and commitment to CQI
Quality excellence becomes part of business
strategy
Lead in the implementation process

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Characteristics of
Successful Leaders
Give attention to external and internal
customers
Empower, not control subordinates. Provide
resources, training, and work environment to
help them do their jobs
Emphasize improvement rather than
maintenance
Emphasize prevention

Encourage collaboration rather than

competition
Train and coach, not direct and supervise
Learn from problems – opportunity for
improvement
Continually try to improve communications
Continually demonstrate commitment to
quality

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Choose suppliers on the basis of quality, not

price
Establish organizational systems that
supports quality efforts

Leadership Concepts
(Understanding of Human Nature)
People, paradoxically, need security and
independence at the same time
People are sensitive to external rewards and
punishments and yet are also strongly self-
motivated
People like to hear a kind word of praise.
Catch people doing something right, so you
can pat them on the back.

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People can process only a few facts at a time;

thus, a leader needs to keep things simple.
People trust their gut reaction more than
statistical data.
People distrust a leader’s rhetoric if the words
are inconsistent with the leader’s actions.

7 Habits of Highly Effective People

(by Stephen Covey)
Habit 1: Be Proactive
Habit 2: Begin with the End in Mind
Habit 3: Put First Things First
Habit 4: Think Win/Win

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Habit 5: Seek First to Understand, Then

to Be Understood
Habit 6: Synergize
(whole is greater than parts)

Habit 7: Sharpen the Saw

(physical, spiritual, mental and
social/emotional)

The Deming Philosophy

1. Create and Publish the aim and purpose

of the Organization
2. Learn the New Philosophy
3. Understand the Purpose of Inspection
4. Stop Awarding Business Based on Price
Alone

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5. Improve constantly and forever the

System
6. Institute Training
7. Teach and Institute Leadership
8. Drive Out Fear, Create Trust, and Create
a climate for Innovation
9. Optimize the Efforts of Teams, groups,
and Staff Areas

10. Eliminate Exhortations for the Work Force

11. EliminateNumerical Quotas for the Work
Force/Eliminate Management by Objective
12. Remove Barriers That Rob People of Pride
of Workmanship
13. Encourage Education and Self-Improvement
for Everyone
14. TakeAction to Accomplish the
Transformation

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Quality Statements

Vision

Mission

Quality Policy

Vision Statement
A short declaration of what an
organization aspires to be tomorrow
An inspirational description of what an
organization would like to achieve or
accomplish in the mid-term or long-term
future.
The best visions are inspirational, clear,
memorable, and concise

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Mission
It answers who we are? Who are the
customers, what we do and how we do
it?

Quality Policy
A guide for everyone in the organization
as to how they should provide products
and services to the customers

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Quality Gurus

Dr. Walter Shewhart (1891-1967)

Developed PDSA cycle for learning and
improvement
Value received for the price paid
Statistical methods to control and improve
Identified two sources of variation
– common or random causes
– special or assignable causes
Wrote a book (in 1931)

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Dr. Edwards Deming (1900-1993)

Taught SPC and importance of quality to
leading CEO’s of Japanese industry (1950)
Provided foundation for Japanese Quality
Miracle
Best-known quality expert
His 14 points provide a theory for
management to improve quality, productivity
and competitive position
Author of several books and scholarly studies

Dr. Joseph M. Juran (1904 – 2008)

Traveled to Japan in 1954 to teach quality

management
Emphasized the necessity of management of
all levels to be committed to quality
The Juran Trilogy (Planning, Control and
Improvement)
Author of several books and scholarly studies

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Dr. Armand Feigenbaum

(1920 – 2014)
Defined quality based on a customer’s actual
experience with the product or service
Customer Focus (start with customer
requirements and end with customer
satisfaction)
“Total Quality Control” in 1951
Devised the concept of Total Quality Control
which inspired Total Quality Management

Dr. Kaoru Ishikawa (1915-1989)

Studied under Deming, Juran and

Feiganbaum.
Authored SPC texts in Japanese and
English
Quality Circle concept
Cause and Effect diagram

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Philip Crosby (1926 – 2001)

Doing it right first time is less expensive

“Quality is Free” (1979) translated in 15
languages. 1.5m copies sold
Quality without Tears (1984)

Genichi Taguchi (1924-2012)

Taguchi methods: statistical methods, to

improve the quality of manufactured goods
Taguchi Quality Loss Function
Quality Robustness (in design of
parameters and tolerances)
Author of several books and scholarly
studies

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Customer Satisfaction
An organization's success depends on
– how many customers it has
– how much they buy and
– how often they buy

Customers that are satisfied, will

increase in number, buy more, and buy
more frequently.

Who is the Customer?

External OR Internal

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Traditional Organizational Diagram

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Customer Satisfaction
Organizational Diagram

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Customer Feedback

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