MANAGEMENT

The process of dealing with or controlling things or people.

Management is a set of principles relating to the functions of planning,
organizing, directing and controlling, and the application of these principles in
harnessing physical, financial, human and informational resources efficiently and
effectively to achieve organizational goals.
Management can be defined as the process of administering and controlling the
affairs of the organization, irrespective of its nature, type, structure

WHAT IS QUALITY?

DIMENSIONS OF QUALITY
Dimensions of quality are the different features of product or service
1. Functionality – the core features and characteristics of a product that satisfy
the customer
2. Reliability – indicator of durability of products.
3. Usability – product should be user friendly. The user should be able to use
the product easily without the help of an expert.
4. Maintainability – ease with which a product can be maintained in the
original condition (measured as mean of time to repair)
5. Efficiency – how much output is taken by different products on giving same
input.
What is the difference between effectiveness and efficiency? They are two
buzzwords that are popularly used by CEOs and Sales VPs in charting the
course of their organization. Yet, they are also commonly misused and
misinterpreted, not just in the lexicon of business-speak but also in daily use.
For all intents and purposes, let’s begin by defining efficiency and
effectiveness in general terms

Effective (adj.) – Adequate to accomplish a purpose; producing the

intended or expected result.
Efficient (adj.) – Performing or functioning in the best possible manner with
the least waste of time and effort.
 The difference between effectiveness and efficiency can be summed up
shortly, sweetly and succinctly –

Being effective is about doing the right things, while being efficient is
about doing things right.

6. Aesthetics – a product or service should not only perform well but also
appear attractive. It includes color, finish, overall look of product or service.
7. Serviceability – includes:
a. How well the customers are treated?
b. How complaints are handled and resolved?
c. How much time you take to resolve problem?

QUALITY MANAGEMENT
The act of overseeing all activities and tasks needed to maintain a desired level of
excellence.
This includes the determination of a quality policy, creating and
implementing quality planning and assurance, and quality control
and quality improvement.
Quality management is a discipline for ensuring that outputs, benefits, and the
processes by which they are delivered, meet stakeholder requirements and are fit
for purpose.
Quality management has four components: quality planning, quality assurance,
quality control and continual improvement. These include procedures, tools and
techniques that are used to ensure that the outputs and benefits meet customer
requirements.

TOTAL QUALITY MANAGEMENT - A core definition of total quality

management (TQM) describes a management approach to long-term success
through customer satisfaction. In a TQM effort, all members of an organization
participate in improving processes, products, services, and the culture in which
they work.
Total quality management (TQM) is a structured
approach to overall organizational management.
The focus of the process is to improve
the quality of an organization's outputs,
including goods and services, through continual
improvement of internal practices.
TQM implies that everyone associated with the
organization is committed towards continual
improvement of the organization through
customer satisfaction.
Dr. WILLIAM EDWARDS DEMING
• referred to as Father of Quality Control
• best known for initiating a transformation in the Japanese
manufacturing sector in the after effects of World War II
• he modified the Shewhart PDSA (plan, do, study, act) to what is now
referred to as the Deming cycle (plan, do, check, act)
• he said that only the CUSTOMER can define the quality of any product
or service. Quality is a relative term that will adjust in meaning based
on the customer’s needs.
• He stressed the responsibilities of top mgt to be the leader in changing
processes and systems. Leadership plays an important role in
ascertaining the success of quality management. Top management is
in charge.
Deming’s 14 point methodology
1. Constancy of purpose – to accommodate long term needs instead of
short term profitability
2. The new philosophy – espouse the philosophy for one can no longer
allow delays, mistakes, and faulty workmanship
3. Cease dependence on inspection – remove the need for mass
inspection as a technique to attain quality by building quality into the
product in the first place.
4. End lowest tender contracts – Deming advised businesses to utilize
single-sourcing for long term relationships with a few suppliers
leading to loyalty and opportunities for shared improvement
5. Improve every process – Plan, Do, Check, Act – the Deming cycle
6. Institute training on the job – fresh skills are essential to sustain
changes in materials, methods, product design, machinery,
techniques, and service.
7. Institute leadership – introduce leadership aimed at helping people
carry out a better job. The responsibility of managers and supervisors
must be altered to highlight on quality rather than quantity.
8. Drive out fear – build a fear-free environment where everyone can
contribute and work effectively
9. Break down barriers – with trust, respect, and appreciation for the
needs of others.
Internal barriers – barriers between organizational levels and
departments.
External barriers – between company and its suppliers, customers,
investors and community.
Barriers can be removed using better communication, cross functional
teams, and changing attitudes and cultures.
10. Eliminate exhortations – to exhort means to strongly persuade
someone to do something.
 Do away with the use of slogans and posters demanding zero defects
and new level of productivity from the workforce with no
commensurate methods provided.
11. Eliminate arbitrary numerical targets – numerical quotas
12. Permit pride of workmanship – merit rating
13. Encourage education – keeps everyone up to date with latest
techniques and methods
14. Top management’s commitment

Deadly diseases that slow down the transformation of 14 points

• Lack of constancy of purpose
• Stress on short-term profit

PHILIP CROSBY
• ZERO DEFECTS – the heart to Crosby’s philosophy – the performance
standard
• Quality is either present or not present at all. There is no such thing as
varying levels of quality.
• Quality Management Maturity Grid
o Uncertainty
o Awakening
o Enlightenment
o Wisdom
o Certainty
14 step methodology
1. Management commitment
2. Quality improvement team
3. Quality measurement
4. Cost of quality
5. Quality awareness
6. Corrective action
7. Zero defects planning
8. Supervisor training
9. Zero defects day
10. Goal setting
11. Error-cause removal
12. Recognition
13. Quality councils
14. Do it over again – quality improvement programs never ends
Mistakes are caused by 2 Factors
• Lack of knowledge – can be eradicated by education and training
• Lack of attention – must have a personal commitment to excellence
(zero defects)

Dr. JOSEPH MOSES JURAN

• Introduce the Quality Trilogies
o Quality Planning
o Quality Control
o Quality Improvement
• He defined quality as “FITNESS FOR USE” and developed the idea of
Cost of Quality
• He believed that:
o quality must be planned
o there is no shortcut to quality
o make use of problems as sources of improvement
• like Deming, he believes most problems are due to management, not
employees.
• Two types of problems:
o Constant problems – require the principle of “breakthrough”
o Irregular problems – require the principle of “control”

Dr. WALTER ANDREW SHEWHART

• The Grandfather of Quality Control
• He produced a diagram that we recognize today as CONTROL
CHART
• He developed the Shewhart cycle: Plan, Do, Study, Act

Dr. ARMAND FEIGENBAUM

• His philosophy is summed up in the 3 steps to quality:
o Quality Leadership – management stresses on sound planning
rather than reacting to failures
o Modern quality technology
o Organizational commitment
• His points on TQM include:
o Quality is not what an engineer or marketer says but it is what
the customer speaks of
o Quality and cost are a sum, not differences
o Quality comes, if it is clear, customer oriented, effective and
structured
PROF. KAORU ISHIKAWA
• Father of Quality Circles
• Father of Japanese Quality
• He developed the cause and effect diagram aka Ishikawa diagram aka
fishbone diagram
• He advocates employee contribution as the input to the successful
implementation of TQM
• 7 basic tools indispensable (essential) to quality control
o Process Flow Chart
o Check Sheet
o Histogram
o Pareto Chart
o Cause-Effect Diagram (Ishikawa Diagram)
o Scatter Diagram
o Control Chart
• He emphasized on quality as a way of management
• He influenced the development of participative bottom-up view of
quality which became the trademark of the Japanese approach to
quality management. Some of the key elements are:
o Quality starts with education and culminates with education
o The first step to quality is to know customers’ requirements
o The perfect state of quality control happens when inspection is no
longer compulsory
o Take out the root cause, not the symptoms
o Quality control is the duty of all workers and all divisions
o Do not mistake means with the objectives
o Set quality first and set your sights on long-term profits
o Market is the entry and way out of quality
o Top management must not demonstrate annoyance when facts are
presented by subordinates
o 99% of problems in a company can be resolved with easy tools for
analysis and problem solving.

• Ishikawa’s concept of total quality control contains 6 fundamental

principles:
o Quality first – not short-term profits first
o Customer orientation – not producer orientation
o The next step is your customer – breaking down the fence of
sectionalism
o Using facts and data to make presentations – use of statistical
methods
o Reverence for humanity as a management philosophy, full
participatory management
o Cross-functional management
GENICHI TAGUCHI
• A Japanese quality expert known for his work in the area of PRODUCT
DESIGN
• Defined quality as “the loss imparted to the society from the time a
product is shipped”
Examples of loss include:
o Failure to reach ideal performance
o Failure to meet customer’s requirements
o Breakdowns
o Harmful side effects caused by products
This simply means the smaller the loss, the more desirable the product.
• Taguchi is known for applying concept called DESIGN OF
EXPERIMENTS to product design. This method is an engineering
approach that focuses on developing robust design that enables
products to perform under varying conditions. He called it the
CONCEPT OF ROBUST DESIGN.

DR. SHINGO SHIGEO

• The greatest contributor to modern manufacturing practices
• His teachings and principles have formed the backbone of efficient
engineering practices.
• 3 Concepts:
o Just in Time (JIT) – supplying customers what they want when
they want it.
The aim of JIT is to diminish inventories by producing only what
is necessary when it is necessary.
o Single Minute Exchange Dies (SMED) – a system for speedy
changeovers between products.
It’s also known as a QUICK CHANGEOVER.
The phrase "single minute" does not mean that all changeovers
and startups should take only one minute, but that they should
take less than 10 minutes (in other words, "single-digit minute").
o Zero Quality Control (ZQC) – focus was on targeting the root cause
of defect whenever a defect took place, thereby almost abolishing
the requirement for statistical process control.

MASAAKI IMAI
• Founder and President of Kaizen Institute
• Kaizen refers to continuous or “on-going” improvement
• Kaizen is acknowledged globally as an essential pillar of an
organization’s long-term competitive strategy.
 • Kaizen philosophy believes that people at all levels, together with the
lowermost levels in the organizational hierarchy, can add to
improvements. This is possible because Kaizen asks for simply little
improvements.

FRAMEWORK FOR QUALITY AND PERFORMANCE EXCELLENCE

The Deming Philosophy
- consists of 4 parts:
➢ Appreciation for a system
➢ Understanding process variation
➢ Theory of knowledge
➢ Psychology

SYSTEMS:
• Set of functions or activities that work together to achieve
organizational goals
• Deming believe that everyone should gain over long term
• Example: McDonald’s

VARIATION
• Common variation:
o Factors that are present as a natural part of a process
• Special variation
o External sources that are not inherent in the process
• Example: bad batch of hamburger patties

THEORY OF KNOWLEDGE
• Management decisions should be driven by facts, data, and justifiable
theories, not solely by opinions

PSYCHOLOGY
• 14 points for management

THE CRITERIA FOR PERFORMANCE EXCELLENCE

• Designed to encourage companies to enhance their competitiveness
through an aligned approach to organizational performance
• Improve value to customers
 • Improvement of overall company performance and capabilities
• Organizational and personal learning

But We …
…Don’t need an award
…Aren’t interested in an award
…Don’t have time to apply for an award
…Aren’t anywhere near a role model organization

Not Just Another Award!

The value of winning…
• Learning is the most important value to most of the firms
• Improving based on what is learned is the next greatest value
• Repeat applicants tend to ‘compete’ against themselves and their first
attempt
• Recognition for high performance does matter – the inherent pride in
being seen as exceptional is definitely a reward in itself

ORGANIZATIONAL EXCELLENCE is defined as the ongoing efforts to

establish an internal framework of standards and processes intended to
engage and motivate employees to deliver products and services that fulfill
customer requirements within business expectations. It is the achievement
by an organization of consistent superior performance—for example,
outputs that exceed meeting objectives, needs, or expectations.

An ORGANIZATION is a group aggregated and combined under specific

leadership to function as a single entity for a particular purpose.
EXCELLENCE is a measure of consistently superior performance that
surpasses requirements and expectations without demonstrating significant
flaws or waste.
ORGANIZATIONAL EXCELLENCE continues the progress established by
a foundation such as total quality management, in which all levels of the
organization participate in continual improvement.
ORGANIZATIONAL EXCELLENCE MODEL AND FRAMEWORK
One program highlighting the traits and attributes of organizational
excellence is the Malcolm Baldrige National Quality Award. In the Baldrige
Excellence Framework, the attributes of organizational excellence include:
• Leadership
• Strategic planning
• Customer and market focus
• Measurement, analysis and knowledge management
• Human resources/workforce focus
• Process management
• Business results

A similar protocol, the European Foundation for Quality Management

(EFQM) Excellence Model, includes the following items:
• Leadership
• People
• Strategy
• Partnerships and resources
• Processes, products, and services
• People results
• Customer results
• Society results
• Business results

The Union of Japanese Scientists and Engineers (JUSE) created the Deming
Prize, with specific awards for individuals and for organizations and
operating divisions. From a definition of "company-wide quality control"
(CWQC), the Deming Prize identified multiple levels and categories of
organizational excellence that include:
• Organization and its management
• Education
• Quality information
• Planning
• Analysis
• Standardization
• Control
• Quality assurance
• Results
These different perspectives suggest that the common traits of
organizational excellence are consistent across different cultures and
nations.
MANAGING FOR ORGANIZATIONAL EXCELLENCE
Another perspective is to view organizational excellence as the successful
integration of:
• Technology ● Infrastructure ● Personnel
Organizational excellence is often the result of:
• Transitional and Transformational activities.

Successful organizational outcomes require deliberate management and

improvement in six key areas:
• Information: Metrics, measures, and decision support
• Structure: Roles, responsibilities, and accountabilities of each
functional area
• People: Total human capital within the organization
• Rewards: Compensation and incentives
• Learning systems: Knowledge and training
• Work processes: Interaction and linkage of workflows
Organizational excellence is dependent upon gaining sufficient commitment
to embrace and apply positive changes in the above areas. Organizational
change management is necessary to effectively communicate the changes to
those affected in order to minimize uncertainty and obstructions.
Collaboration is critical, and the evidence of organizational excellence can be
demonstrated across the organization with a balanced scorecard that covers
the following perspectives:
• Financial
• Customer
• Internal business processes
• Learning and growth
Organizational excellence is incremental. Different tiers or “maturity levels”
should be identified as interim targets for each of the organizational
excellence characteristics. By focusing on the performance expectations of an
accessible maturity level, employees and stakeholders will be more inclined
to make the necessary changes within their control and capabilities. And as
maturity levels are reached, participants should be recognized for their
efforts.
BENEFITS OF PURSUING AND ACHIEVING ORGANIZATIONAL
EXCELLENCE
The pursuit of achieving organizational excellence can strengthen the overall
prestige of an organization both internally and externally. Any additional
costs to infrastructure and overhead have the potential to be repaid with
greater returns resulting from engaged employees, satisfied customers, and
more efficient operations.
Three Fundamental Concepts of TQM
• Customer focus: internal and external customers
• Continuous improvement: in manufacturing and service
organizations
• The value of every associate: contributions of every individual, self-
directing work teams, and improvement teams.

Three Strong Forces

• Alignment: clear vision, clear definitions of objectives, translation of
key objectives throughout the organization
• Linkage: linking activities across all functions and departments,
reengineering
• Replication: apply similar problem-solving methodology to achieve
the same results

Three Critical Processes

• Quality Planning Process
• Quality Control
• Quality Improvement Process

Quality Awards and Standards

• DEMING PRIZE

o One of the highest awards given for TQM initiatives

o Established by JUSE (Japanese Union of Scientists and
Engineers) in December 1950
o Any company in the world is allowed to participate and get
recognized
o It is annually awarded
 Categories of Deming Prize
o The Deming Prize for Individuals
o The Deming Appreciation Prize
o The Quality Control Award for Operation Business Units
Checklist for Application
o Outline of the organization
o Organization and management
o TQM promotion
o Policy management
o Human resource development
o Information management
o Implementation status of quality control
o Overall defects
o Future plan
Structure and roles of Deming Prize committee
o The committee members consists of TQM experts from industry
and academic field

• Malcolm Baldrige National Quality Award

o America’s highest honor for innovation and performance

excellence in quality
o Named after former US secretary of commerce, Mr. Malcolm
Baldrige
o Started in year 1987
o Issued by US National Institute of Standards and Technology
 Baldrige Criteria for Performance Excellence Framework

Categories:
o Manufacturing
o Service
o Small business
o Education (added 1999)
o Health care (added 1999)
o Non-profit (2005)

• ASQ Certification
o ASQ – American Society for Quality
o ASQ certification is a formal recognition by ASQ that an
individual has demonstrated a proficiency within, and
comprehension of, a specific body of knowledge
o Nearly 150,000 certifications have been issued to dedicated
professionals worldwide
Categories
o Calibration (the setting or correcting of a measuring device or
base level, usually by adjusting it to match or conform to a
dependably known and unvarying measure.)
o Six sigma (seeks to improve the quality of process outputs by
identifying and removing the causes of defects)
o Quality auditor
o Quality engineer
o Quality technician
o Software quality engineer
o Reliability engineer
• The European Quality Award
o Referred to as the EFQM Excellence
Award
o EFQM means European Foundation for
Quality Management
o Awarded annually
o Centers on EXCELLENCE
o Excellent organizations achieve and
sustain superior levels of performance
that meet or exceed the expectations of all their stakeholders
EFQM Model
2005

• ISO 22000:2005 FOOD SAFETY MANAGEMENT SYSTEM

o A mgt. system designed to enable organizations to control food
safety hazards along the food chain in order to ensure that food
is safe at the time of consumption.
Features:
o First global food safety standard
o Harmonizes the voluntary international standards
o Employees proven management system principles
o Enables a common understanding of what a food safety
management system is
o Requires legal compliance checking
o Integrates existing good practice
o Internal and external monitoring