QUALITY
- Nonexistence of defects which
allows companies to meet customer
expectations
- Let the companies to re-establish
pride and loyalty
- Can only be attained by the nonstop
improvement of all systems and
processes, not simply the production
of products and services but also the
design, development, service,
purchasing, administration and all
aspects of the transaction with the
customer
APPROCAHES TO QUALITY
DEFINITION
1. Transcendent
- Superior, perfect
2. Products Based
- Durability (The yardstick for
measurement may be deceptive or
misleading)
3. User – Based
- Consumer preferences differ
extensively.
- Support the needs of the biggest
number of customers.
4. Manufacturing Based
- Conformance requirements (any
difference involves decline in
quality.
5. Value – Based
- Quality and value
QUALITY TYPES
- Quality of design
- Quality of conformance
- Quality of performance
COST OF QUALITY
1. Prevention Cost
- Incurred to prevent or avoid failure
problems
A. Product or service requirements
- Establishment of qualification for
inward bound materials, processes,
finished products and services.
B. Quality Planning
- Drawing of plans for quality,
reliability, operations, productions
and inspections.
C. Quality Assurance
- Planning and continuance of the
quality system.
D. Training
- Development, preparation and
continuance of programs.
2. Appraisal Costs
- These costs are associated with
measuring and monitoring activities
related to quality standards and
performance requirements.
A. Verification
 - Checking of inward bound materials,
process setup, and product against
contracted specifications.
B. Quality Audits
- Confirmation that the quality system
is operating properly.
C. Supplier Rating
- Appraisal and endorsement of
supplier of products and services.
3. Internal Failure Costs
- These costs are acquired to treat
defects revealed earlier when the
product or service is delivered to the
customer.
4. External Failure Costs
- These are costs obtained to treat
defects exposed by customers.
TOTAL QUALITY MANAGEMENT
- Consist of continuous process
enhancement activities concerning
managers and workers in a
completely integrated effort toward
improving performance at all level.
- Lifetime dedication to continuous
improvement.
ELEMENTS OF TQM
1. Foundation
- The entire process of TQM is built
on a strong foundation of:
 Ethics
 Integrity
 Trust
2. Building Bricks
 Leadership
 Teamwork
 Training
3. Binding Mortar
- Binds all elements together.
Communication binds everything
together, starting to the foundation
and going up to the roof. The
channels of communication need to
be credible and easily interpreted for
all members of organization.
Three types of Communication
Downward Communication
- Presentation and discussion
Upward Communication
- Insights and constructive criticism
Sideways/Lateral Communication
- Breaks down barrier between
departments.
4. Roof
- Roof is the most important factor
which acts as a catalyst and drives
employees to work hard as a team
and deliver their level best.
CORE CONCEPS OF TQM
1. Customer satisfaction
2. Internal Customer satisfaction
3. All work is process
4. Measurement
5. Synergy in teamwork
6. People make quality
7. Continuous improvement cycle
8. Prevention
BENEFITS OF TQM
1. Create a good corporate culture
- Culture that supports total
commitment to customer satisfaction
through continuous improvement.
2. Better reviews from customers
- Constantly meet the requirements
and needs of clients and customers.
3. Better performance from employees
- The training given to the employees
as part of the program can boost
employee morale at the workplace
resulting in employees working
harder to achieve the goals of TQM.
SHIFTING FROM TRADITIONAL
MANAGEMENT TO TQM
Traditional Management
- Products or services provided by
organization were assumed to be in
good quality, if this organization has
done its best producing that product
or service.
- People thought bad quality products
are due to the workers who do not
perform their job properly.
TQM
- Focus is the customer and final
decider of the quality is the
customer.
- Responsibility of the quality goes
into the middle level management in
the operational level.
- Calls for high amount of team
working.
- Believes in quality assurance rather
than checking.
- Makes decision on facts and figures.
Problems are identified properly and
solutions are well planned.
- Improvements are continuous.
TQM AND REENGINEERING
- Reengineering sometimes called
Business Process Reengineering
(BPR) involves a complete
rethinking and transformation of key
business processes.
- Reengineering means basically
starting over – throwing out all the
thinking of how work was done and
deciding how it can best be done
now. It requires identifying customer
needs then designing processes and
supporting people to meet those
needs.
THE BEGINNINGS OF TQM
TQM involves methodology for continually
improving the quality of all processes.
TQM TIME LINE
1920: Some of the first seeds of quality
management were planted as the principles
of scientific management swept through
U.S. industry.
1930: Walter Shewhart developed the
methods for statistical analysis and control
of quality.
1950: W. Edwards Deming taught methods
for statistical analysis and control of quality
to Japanese engineers and executives.
Joseph M. Juran taught the concepts of
controlling quality and managerial
breakthrough.
Armand V. Feigenbaum’s book Total
Quality was published.
Philip B. Crosby’s promotion of zero
defects paved the way for quality
improvement in many companies.
1968: Kaoru Ishikawa’s synthesis of the
philosophy contributed to Japan’s
ascendancy as a quality leader.
TODAY:
TQM is the name for the philosophy of a
broad and systemic approach to managing
organizational quality. Quality standards
such as the ISO 9000 Series and quality
award programs such as the Deming Prize
and the Malcolm Baldridge National Quality
Awards specify principles and processes that
comprise TQM.
SIGNIFICANCE OF TQM
- The importance of TQM lies in the
fact that it encourages innovation,
makes the organization adaptable to
change, motivates people for better
quality, and integrates the business
arising out of a common purpose and
all these provide the organization
with a valuable and distinctive
competitive edge.
Inspection
- Salvage
- Sorting, grading, reblending
- Corrective actions
- Identify sources of non conformance
Quality Control
- Develop quality manual
- Process performance data
- Self – inspection
- Product testing
- Basic quality planning
- Use of basic statistics
- Paper work controls
Quality Assurance
- Quality system development
- Advanced quality planning
- Comprehensive quality manuals
- Use of quality cost
- Involvement of non-production
operations
- Failure mode and effects analysis
- Statistical process control
Total Quality Management
- Policy deployment
- Involve suppliers and customer
- Involve all operations
- Process management
- Performance measurement
- Teamwork
- Employee involvement
7 Important Principles of TQM
1. Quality can and must be managed
2. Processes, not people, are the problem
3. Don’t treat symptoms, look for the cure
4. Every employee is responsible for quality
5. Quality must be measurable
6. Quality improvements must be continuous
7. Quality is a long-term investment
INNOVATORS OF TQM
1. Dr. William Edwards Deming
W. Edwards Deming’s 14 Points
1. Create constancy of purpose towards
improvement of product and services.
2. Adopt the new philosophy. We can no
longer live with commonly accepted levels
of delays, mistakes, defective workmanship.
3. Cease dependence on mass inspection.
Require, instead, statistical evidence that
quality is built in.
4. End the practice of awarding business on
the basis of price tag. (End lowest tender
contracts) utilize single-sourcing for long
term relationship.
5. Improve every process - Find problems. It
is management’s job to work continually on
the system.
6. Institute modern methods of training on
the job.
7. Institute leadership - modern methods of
supervision of production workers.
8. Drive out fear – everyone may work
effectively for the company. Build a fear
free environment.
9. Break down barriers between
departments.
10. Eliminate numerical goals, posters and
slogans for the workforce asking for new
levels of productivity without providing.
11. Eliminate work standards that prescribe
numerical quotas.
12. Remove barriers that stand between the
hourly worker and his right to pride of
workmanship.
13. Encourage Education
14. Top management commitment
2. Dr. Walter Andrew Shewhart
- Grandfather of quality control.
3. Dr. Joseph Juran
- The father of quality
10 Steps to Quality Improvement
1. Build awareness of need and opportunity
for improvement
2. Set goals for improvement
3. Organize to reach goals
4. Provide training
5. Do projects to resolve problems
6. Report Progress
7. Give recognition
8. Communicate Results
9. Keep Score
10. Maintain momentum by making annual
improvement part of the regular systems and
processes of the company
4. Philip Crosby
14 Steps to Quality Improvement
1. Management Commitment
- The need for quality improvement
must be recognized and adopted by
management, with an emphasis on
the need for defect prevention.
Quality improvement is equated with
profit improvement. A quality policy
is needed which states that each
individual is expected to perform
exactly like the requirement or cause
cause the requirement to be officially
changed to what we and the
customer really need.
2. Quality Improvement Team
- Representatives from each
department or function should be
brought together to form a quality
improvement team. These should be
people who have sufficient authority
to commit the area they represent to
action.
3. Quality Measurement
- The status of quality should be
determined throughout the company.
This means establishing quality
measures for each area of activity
that are recorded to show where
improvement is possible, and where
corrective action is necessary.
4. Cost of Quality
- To identify the components of the
cost of quality, and give details on its
application as a management tool.
5. Quality Awareness
- This involves, through training and
the provision of visible evidence of
the concern for quality improvement,
making employees aware of the cost
to the company of defects.
6. Corrective Action
- Discussion about problems will bring
solutions to light and also raise other
elements for improvement. People
need to see that problems are being
resolved on a regular basis.
Corrective action should then
become a habit.
7. Zero Defects Planning
- Zero defects are not a motivation
programme – its purpose is to
communicate and instill the notion
that everyone should do things right
first time.
8. Supervisor Training
- All managers should undergo formal
training on the 14 steps before they
are implemented. A manager should
understand each of the 14 steps well
enough to be able to explain them to
his or her people.
9. Zero Defects Day
 - It is important that the commitment
to Zero Defects as the performance
standard of the company makes an
impact, and that everyone gets the
same message in the same way. Zero
Defects Day, when supervisors
explain the programme to their
people, should make a lasting
impression as a new attitude’ day.
10. Goal Setting
- Each supervisor gets his or her
people to establish specific,
measurable goals to strive for.
Usually, these comprise 30-, 60-, and
90 – day goals.
11. Error Cause Removal
- Employees are asked to describe, on
a simple, one – page form, any
problems that prevent them from
carrying out error – free work.
Problems should be acknowledged
within twenty – four hours by the
function or unit to which the problem
is addressed. This constitutes a key
step in building up trust, as people
will begin to grow more confident
that their problems will be addressed
and dealt with.
12. Recognition
- Act of recognition is what is
important.
13. Quality Councils
- The quality professionals and team –
leaders should meet regularly to
discuss improvements and upgrades
to the quality programme.
14. Do it over again
- During the course of a typical
programme, lasting from 12 to 18
months, turnover and change will
dissipate much of the educational
process. It is important to set up a
new team of representatives and
begin the programme over again,
starting with Zero Defects day. This
‘starting over again’ helps quality to
become ingrained in the
organization.
KEYS TO MAINTING AN EFFECTIVE
QUALITY PROGRAM YEAR – IN AND
YEAR – OUT
1. Full commitment from top management
(Leadership by example)
2. Ongoing training and professional
development; encourage employees to
participate in process.
3. Access to the needed resources and given
TOP priority
4. Take no shortcuts to quality
5. Set quality goals, review progress, give
recognition, and communicate,
communicate, communicate!
THE PLAN – DO – CHECK – ACT
CYCLE
Plan
- Identify your problems
Do
 - Test potential solutions take action based on feasible targets, rather
than experience or opinions.
Check
DEMING’S SEVEN DEADLY
- Study results
DISEASES
Act 1. Lack of constancy of purpose to plan
- Implement the best solution product and services

APSD 2. Emphasis on short – term profits

Act – adopt the change, or abandon it, or run
through the cycle again.
Plan – a change or a test, aimed at
improvement.
3. Personal review systems including
evaluation by performance, merit – rating or
annual review.
4. Mobility of management

Study – the results. What did we learn?
What went wrong?
Do – carry out the change or the test
(preferably on a small scale).
5. Running a company on visible figures
alone rather than ‘invisible’ or non –
numerical data.
6. Excessive medical costs

The essence of Crosby’s teachings is 7. Excessive liability cost

contained in what he calls the “the four STAGES OF QUALITY MATURITY
absolute of quality.” MEASUREMENT
1. The definition of quality is conformance
Categories
to requirement, not goodness
1. Management attitude
2. The system of quality is prevention
2. Quality’s status
- Prevention is better than correction,
detection or appraisal. In the whole 3. Problem resolution
process you need to take preventive
action. By that, it can minimum the 4. Cost of quality as % of sales
error, damage and also problem 5. Quality improvements
3. The performance standard is zero defects 6. Company position on quality
4. The measurement of quality is the price of Uncertainty
non – conformance
1. Blames quality department for issues with
Quality must be defined in quantifiable and quality
clearly stated terms to aid the organization
2. Quality is a siloed function, with main
emphasis on appraisal and sorting
3. Firefighting approach with poor problem
definition and a tendency to blame people
4. Reported: unknown
Actual: 20%
5. No organization or understanding
6. Doesn’t know why quality problems exist
Awakening
1. May see value of quality management,
but unwilling to invest in it
2. Quality still in its silo, but with a stronger
quality leader
3. Team - based approach to problem -
solving, but still lacks long term solution
4. Reported: 3%
Actual: 18%
5. Short - term approaches
6. Questions necessity of continued quality
problems
Enlightenment
1. Learning about quality management and
becoming more supportive
2. Quality manager plays role in quality
management
3. Established corrective action processes to
deal with problems openly
4. Reported: 8%
Actual: 12%
5. Implements and understands Crosby’s 14
- step program
6. Management is committed to problem
identification and resolution
Wisdom
1. Participates in quality and understands
their role in it
2. Quality manager engages in reporting,
preventive action and special projects
3. Early identification of problems with all
functions opens to improvement
4. Reported: 6.5%
Actual: 8%
5. Starts to be more certain about quality
6. Defect prevention is routine
Certainty
1. Considers quality management critical to
company processes
2. Quality manager is a thought leader
focused mainly on prevention
3. For the most part, problems are prevented
4. Reported: 2.5%
Actual: 2.5%
5. Quality improvement is regular and
ongoing
6. understands why quality problems no
longer exist