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CBMEC 1
OM & TQM
INTRODUCTION TO QUALITY &
Quality Management Philosophers
Part 1

JEOFFREY R. ESCALA, BSME, MMExM, CSP

Facilitator
 Modern Importance of Quality
“The first job we have is to turn out quality
merchandise that consumers will buy and keep
on buying. If we produce it efficiently and
economically, we will earn a profit, in which you
will share.”
- William Cooper Procter

Quality, productivity, and cost remain imperatives for modern organizations.

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 Key Idea

Building—and maintaining—quality into

an organization’s goods and services,
and more importantly, into the
infrastructure of the organization itself, is
not an easy task.

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 Quality Assurance
...is any planned and systematic activity directed toward
providing customers with goods and services of
appropriate quality, along with the confidence that
products meet consumers’ requirements.

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 History of Quality Assurance
(1 of 3)

• Skilled craftsmanship during Middle Ages

• Industrial Revolution: rise of inspection and
separate quality departments
• Early 20th Century: statistical methods at Bell
System
• Quality control during World War II
• Post-war Japan: evolution of quality management
as promoted by Deming and Juran
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 History of Quality Assurance
(2 of 3)

• US quality crisis around 1980; growth of product

quality awareness in manufacturing industries
• Quality as a management discipline: from “Little
Q” to “Big Q” – emergence of Total Quality
Management
• Malcolm Baldrige National Quality Award (1987)
• Disappointments and criticism

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 History of Quality Assurance
(3 of 3)

• Emergence of quality management in service

industries, government, health care, and
education
• Evolution of quality to the broader concept of
performance excellence
• Growth and adoption of Six Sigma
• Current and future challenge: continue to apply
the principles of quality and performance
excellence. Quality is “a race without a finish
line.”

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 Key Idea

Although quality initiatives can lead to

business success, they cannot guarantee
it, and one must not infer that business
failures or stock price dives are the result
of poor quality.

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 Contemporary Influences on
Quality
• Globalization
• Social responsibility
• New dimensions of quality
• Aging population
• Health care
• Environmental concerns
• 21st century technology

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 Defining Quality
Perfection Fast delivery
Providing a good, usable product
Consistency
Eliminating waste
Doing it right the first time
Delighting or pleasing customers

Total customer service and satisfaction

Compliance with policies and procedures
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 Formal Definitions of Quality
• Transcendent definition: excellence
• Product-based definition: quantities of product
attributes
• User-based definition: fitness for intended use
• Value-based definition: quality vs. price
• Manufacturing-based definition: conformance
to specifications

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 Quality Perspectives
transcendent &
product-based user-based
needs
Marketing
Customer

value-based Design
products
and manufacturing-
services based
Manufacturing
Distribution
Information flow
Product flow
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 Key Idea

Because individuals in different business

functions speak different “languages,” the
need for different views of what constitutes
quality at different points inside and outside
an organization is necessary to create
products of true quality that will satisfy
customers’ needs.

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 Customer-Driven Quality

• “Meeting or exceeding customer expectations”

• Customers can be...
– Consumers
– External customers
– Internal customers

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 Total Quality
• Principles – foundation of the philosophy
• Practices – activities by which principles are
implemented
• Techniques – tools and approaches to make
practices effective

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 Principles of Total Quality
• Customer and stakeholder focus
• Employee engagement and teamwork
• Process focus supported by continuous
improvement and learning

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Customer and Stakeholder Focus
• Customer is principal judge of quality
• Organizations must first understand
customers’ needs and expectations in order
to meet and exceed them
• Organizations must build relationships with
customers
• Customers include employees and society at
large
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 Key Idea

To meet or exceed customer

expectations, organizations must fully
understand all product and service
attributes that contribute to customer
value and lead to satisfaction and loyalty.

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 Employee Engagement and
Teamwork
• Employees know their jobs best and therefore,
how to improve them
• Management must develop the systems and
procedures that foster participation
• Empowerment better serves customers, and
creates trust and motivation
• Teamwork and partnerships must exist both
horizontally and vertically
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 Key Idea
In any organization, the person
who best understands his or her
job and how to improve both the
product and the process is the
one performing it.

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 Process Focus and Continuous
Improvement
• A process is how work creates value for
customers
• Processes transform inputs (facilities,
materials, capital, equipment, people, and
energy) into outputs (goods and services)
• Most processes are cross-functional

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 Key Idea

A process is a sequence of activities

that is intended to achieve some
result

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 Process Versus Function

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 Continuous Improvement
• Incremental changes as well as larger, rapid
improvements.
• Examples:
– Enhancing value through new products and services
– Reducing errors, defects, waste, and costs
– Increasing productivity and effectiveness
– Improving responsiveness and cycle time performance

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 Key Idea

Major improvements in response time

may require significant simplification
of work processes and often drive
simultaneous improvements in quality
and productivity.

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Deming’s View of a Production
System
Suppliers of
Design and
materials and
Redesign
equipment Consumer
Receipt and test research
of materials
A Consumers
Production, assembly
B inspection
C Distribution
D Tests of processes, machines, methods
INPUTS PROCESSES OUTPUTS
Feedback
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 Learning
• The foundation for improvement …
Understanding why changes are successful
through feedback between practices and results,
which leads to new goals and approaches
• Learning cycle:
– Planning
– Execution of plans
– Assessment of progress
– Revision of plans based on assessment findings

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 TQ Practices

• Strategic planning and design of organizational

and work systems
• Customer engagement and knowledge
acquisition
• Workforce management
• Process management
• Information and knowledge management
• Leadership

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 TQ Techniques

• Statistical methods
• Visual aids for problem solving, such as
flowcharts
• Techniques specific to quality assurance
activities, such as control charts, measurement
systems analysis, reliability models, and so on.

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 Competitive Advantage
• Is driven by customer wants and needs
• Makes significant contribution to business success
• Matches organization’s unique resources with
opportunities
• Is durable and lasting
• Provides basis for further improvement
• Provides direction and motivation

Quality supports each of these characteristics

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 Quality and Profitability
Improved quality Improved quality
of design of conformance

Higher perceived Higher Lower

value prices manufacturing and
service costs
Increased market Increased
share revenues

Higher profitability
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 Key Idea

Considerable evidence exists

that quality initiatives positively
impact bottom-line results.

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Quality and Business Results Studies

• General Accounting Office study of Baldrige

Award applicants
• Hendricks and Singhal study of quality award
winners
• Performance results of Baldrige Award
recipients

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 Key Idea

An organization that is committed to

total quality must apply it at three
levels: the organizational level, the
process level, and the performer/job
level.

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 Three Levels of Quality

• Organizational level: meeting external

customer requirements
• Process level: linking external and internal
customer requirements
• Performer/job level: meeting internal
customer requirements

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 Quality and Personal Values

• Personal initiative has a positive impact on

business success
• Quality-focused individuals often exceed
customer expectations
• Quality begins with personal attitudes
• Attitudes can be changed through
awareness and effort (e.g., personal quality
checklists)

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 Key Idea

Unless quality is internalized at the

personal level, it will never become
rooted in the culture of an
organization. Thus, quality must
begin at a personal level (and that
means you!).

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DR. WILLIAM EDWARDS DEMING
(1900 -1993)
1921 – UNIVERSITY OF WYOMING; BS ELECTRICAL
ENGINEERING
1924 – UNIVERSITY OF COLORADO; MS
Mathematics and Physics
1928 – YALE UNIVERSITY; PhD in MATHEMATICAL
PHYSICS
1927 – 1939 WORKED AT US DEPARTMENT OF
AGRICULTURE
1947 – RECRUITED TO HELP JAPAN PREPARE FOR
1951 JAPANESE CENSUS.

1950 – INVITED TO RETURN TO JAPAN AND TEACH THE APPLICATION OF

STATISTICS TO QUALITY IMPROVEMENT BY THE UNION OF JAPANESE SCIENTIST
AND ENGINEERS (JUSE). JUSE MEMBERS HAD STUDIED SHEWHART’S
TECHNIQUES AND SOUGHT AN EXPERT TO TEACH STATISTICAL CONTROL.
DEMING TAUGHT STATISTICAL PROCESS CONTROL (SPEC) AND CONCEPTS OF
QUALITY.
 THE DEMING – SHEWHART
CONNECTION

TOGETHER WITH WALTER SHEWHART, DEMING ORGANIZED MANAGEMENT

SEMINARS AT THE STANFORD UNIVERSITY WITH THE AIM OF IMPROVING
PRODUCTIVITY AND THE QUALITY OF MILITARY EQUIPMENT.

THEIR STUDIES OPPOSED TAYLOR’S MANAGEMENT PRINCIPLES.

 JOSEPH JURAN
(1904 -2008)
1924 – UNIVERSITY OF MINNESOTA; BS ELECTRICAL
ENGINEER

1925 – WORKED WITH WESTERN ELECTRIC’S INSPECTION

DEPARTMENT

1935 – MASTERS DEGREEE IN LAW BUT NEVER PRACTICED

LAW.

1952 – JURAN’S “QUALITY CONTROL HANDBOOK” LED TO

AN INVITATION BY THE UNION OF JAPANESE SCIENTIST
AND ENGINEERS (JUSE). IN JAPAN HE GOT INVOLVED IN
MANUFACTURING COMPANIES AND LECTURED IN
QUALITY MANAGEMENT AT HAKONE, WASEDA
UNIVERSITY, OSAKA, AND KOYASAN.
 KAORU ISHIKAWA
(1915 - 1989)
1937 – TAITUC; ENGINEERING DEGREE IN APPLIED
CHEMISTRY
1939 - 1941 – NAVAL TECH OFFICER OVERSEEING 600
WORKERS TO CONSTRUCT A FACTORY
1947 – UNIVERSITY OF TOKYO RESEARCHER WHERE HE
BEGAN STUDYING STATISTICAL METHODS
1949 – JOINED JUSE QUALITY CONTROL. TRANSLATED,
INTEGRATED, AND EXPANDED THE MANAGEMENT
CONCEPTS OF DEMING AND JURAN INTO THE JAPANESE
SYSTEM
1981 – EXECUTIVE MEMBER OF ISO AND PUBLISHED “WHAT IS TOTAL QUALITY
CONTROL? THE JAPANESE WAY”

ADVOCATE OF THE 7 BASIC TOOLS:

PARETO CHART CAUSE AND EFFECT (ISHIKAWA DIAGRAM)
CHECK SHEET SCATTER DIAGRAM
CONTROL CHART STRATIFICATION
HISTOGRAM
AT THE 1986 ASQ ANNUAL QUALITY CONGRESS: DEMING,
HARRINGTON, WESTCOTT, JURAN, AND ISHIKAWA
DEMING CHAIN REACTION
 DEMING’S 14 POINTS
1. CREATE A VISION AND DEMONSTRATE
COMMITMENT
2. ADOPT THE NEW PHILOSOPHY
3. CEASE DEPENDENCE ON INSPECTION TO ACHIEVE
QUALITY
4. END THE PRACTICE OF AWARDING BUSINESS ON
PRICE ALONE
5. CONTINUOUS IMPROVEMENT
6. INSTITUTE TRAINING
7. TEACH AND INSTITUTE LEADERSHIP
 8. DRIVE OUT FEAR. CREATE A CLIMATE OF
INNOVATION.
9. OPTIMIZE THE EFFORTS OF TEAMS.
10. ELIMINATE EXHORTATIONS.
11. ELIMINATE NUMERICAL QUOTAS AND
MANAGEMENT BY OBJECTIVES
12. REMOVE BARRIERS TO PRIDE IN WORKMANSHIP
13. ENCOURAGE EDUCATION AND SELF-IMPROVEMENT
FOR EVERYONE.
14. TAKE ACTION
 JURAN’S QUALITY MANAGEMENT
PRINCIPLES ARE BASED ON 3 KEY
PRINCIPLES

PARETO PRINCIPLE (80/20 RULE)

MANAGEMENT THEORY – EDUCATION AND TRAINING IN THE

WORKFIELD IS AS IMPORTANT AS THE NUTS AND BOLTS OF THE
MANUFACTURING PROCESS.

JURAN’S QUALITY TRILOGY

 JURAN’S QUALITY TRILOGY

Quality Planning: Juran's Quality Planning Road Map consists of the

following steps:
1) Identify who are the customers.
2) Determine the needs of those customers.
3) Translate those needs into our language.
4) Develop a product that can respond to those needs.

Some examples of quality planning tools are Force field

analysis, Affinity diagram, Interrelationship digraph, and Failure
mode effect analysis.
 JURAN’S QUALITY TRILOGY

Quality Control: Once the processes are

defined, the responsibility is now with operations, to
adhere to the processes and specifications required
by the product/service. For this purpose periodic
checks and inspection has to be done, metrics need
to be tracked, to ensure that the process is in control
and meets specifications and the metrics need the
set target.
 JURAN’S QUALITY TRILOGY

Quality Control: Wherever there is a defect a

corrective and preventive action needs to be done,
and root cause has to be arrived at. Also the
deviation in the metrics and process audit results
need to be monitored and corrected for meeting the
required target as specified by the processes.
 JURAN’S QUALITY TRILOGY

Quality Improvement: However robust the

process design and the product features are, there
are chances that it may fail to meet customer
requirements and design targets. It might be due to
some special causes that are present in the system
and might be due to change in business scenarios,
customer requirements, market completion and
many more forces.
 JURAN’S QUALITY TRILOGY

Quality Improvement: The role of Quality

Improvement is to identify and prove the need for
improvement from the existing performance levels
even though they meet the target and devise means
and ways to achieve the new target and implement
them successfully.
 JURAN’S QUALITY TRILOGY

Quality Improvement:
In Statistical Process Control (SPC), there are
several tools that could be used in the “control”
phase of the Juran Trilogy: Pareto Analysis, flow
diagrams, fishbone diagram, and control charts, to
name a few.
 PHILIP BAYARD CROSBY
(1926 -2001)

Crosby worked at Martin Marietta in the

1960’s. While he was there, he developed
the concept of “zero defects”, and
popularized the phrase, “Do it right the
first time”.

He stressed prevention and argued against

the idea that “there will always be some
level of defectives”.

In 1979, his book “Quality is Free” was

published.
 14 STEPS FOR QUALITY IMPROVEMENT

1. MANAGEMENT COMMITMENT. MAKE QUALITY A HIGH PRIORITY FOR THE FIRM.

2. QUALITY IMPROVEMENT TEAMS. CROSS-FUNCTIONAL TEAMS GUIDE AND ACHIEVE

IMPROVEMENTS.

3. QUALITY MEASUREMENT. CLEAR MEASURES THAT RELATE TO INDIVIDUAL

ACTIVITIES.

4. COST OF QUALITY EVALUATION. ASSESS PREVENTION, APPRAISAL, AND FAILURE

COSTS.

5. QUALITY AWARENESS. FORMAL PROGRAMS FOR CREATING AWARENESS.

6. CORRECTIVE ACTION. TEAMS IDENTIFY, STUDY, AND RESOLVE PROBLEMS.

7. ZERO DEFECTS PLANNING. MOVING FROM CORRECTING PROBLEMS TO TOTALLY

ELIMINATING THEM.
 14 STEPS FOR QUALITY IMPROVEMENT

8. EMPLOYEE EDUCATION. EMPLOYEES AT ALL LEVELS TRAINED TO FULFILL THEIR

PROPER ROLES.

9. ZERO DEFECTS DAY. EVENT TO SIGNAL A NEW, HIGHER STANDARD OF

PERFORMANCE.

10. GOAL SETTING. NEW GOALS TO GUIDE PERFORMANCE AND TO KEEP QUALITY IN
THE FOREFRONT.

11. ERROR CAUSE REMOVAL. MOES FROM CORRECTING PROBLEMS TO REMOVING THE
UNDERLYING CAUSES.

12. RECOGNITION. APPRECIATION OF EMPLOYEES WHOSE ACTIONS HAVE HELPED THE

FIRM ACHIEVE ITS QUALITY OBJECTIVES.

13. QUALITY COUNCIL. TEAM LEADERS MEET REGULARLY TO SHARE EXPERIENCES AND
PLANS.

14. DO IT ALL OVER AGAIN! REPEAT THE STEPS AT A HIGHER LEVEL.

 ARMAND VALLIN FEIGENBAUM
(1920 – 2014)

“Quality is a customer determination

which is based on the customer’s actual
experience with the product or service,
measured against his or her
requirements – stated or unstated,
conscious or merely sensed, technically
operational or entirely subjective –
always representing a moving target in
a competitive market”.

- Dr. Armand Feigenbaum

 TOTAL QUALITY CONTROL IS AN
INTEGRATED SYSTEM OF

1. QUALITY LEADERSHIP
2. MODERN QUALITY TECHNOLOGY
3. ORGANIZATIONAL COMMITMENT
 HIDDEN FACTORY
REPRESENTS THE UNTAPPED CAPACITY OF YOUR MANUFACTURING PLANT.

OK FIRST TIME
INPUTS OPERATION INSPECT
CORRECT

REWORK NOT OK

HIDDEN
FACTORY

SCRAP
 FEIGENBAUM’S COST OF QUALITY
PREVENTION
COST
COST OF GOOD
QUALITY

APPRAISAL
COST
TOTAL COST OF
QUALITY

INTERNAL
FAILURE
COST OF POOR
QUALITY

EXTERNAL
FAILURES
 PREVENTION COSTS
Prevention costs are the costs of all activities that
are designed to prevent poor quality from arising in
products or services. The examples of the
prevention costs include:

•Quality planning
•Education and training
•Conducting design reviews
•Supplier reviews and selection
•Quality system audits
•Process planning and control
•Product modifications
•Equipment upgrades
 APPRAISAL COSTS
Appraisal costs are costs that are incurred to ensure the
conformance to quality standards and performance
requirements. The examples of the appraisal costs include:

•Test and inspection (receiving, in-process and final)

•Supplier acceptance sampling
•Product Audits
•Calibration
 INTERNAL FAILURE COSTS
Internal Failure Costs are the costs that are associated with
defects found within the organization before after the
customer receives the product or service. The examples of
the internal failure costs include:

•In-process scrap and rework

•Troubleshooting and repairing
•Design changes
•Inventory required to support poor process yields and
rejected lots
•Re-inspection / retest of reworked items
 EXTERNAL FAILURE COSTS
External Failure Costs are the costs that are associated with
defects found after the customer receives the product or
service. The examples of the external failure costs include:

•Sales returns and allowances

•Replacing defective products
•Service level agreement penalties
•Complaint handling
•Field service labor and parts costs incurred due to warranty
obligations
•Product recalls / Legal claims
•Lost customers and opportunities
•Downgrading
•Processing of customer complaints
QUESTIONS?