TOPIC 1: UNDERSTANDING

QUALITY MANAGEMENT
A. Managing quality
B. Quality starts with understanding the needs
C. Quality in all functions
 A. QUALITY MANAGEMENT
• TQM was developed by William Deming, a management consultant
whose work had a great impact on Japanese manufacturing.
• Total Quality Management is a business philosophy that champions the
idea that the long-term success of a company comes from customer
satisfaction and loyalty.
• TQM requires that all stakeholders in a business work together to improve
processes, products, services and the culture of the company itself.
 A. QUALITY MANAGEMENT
• The 1920s saw the rise in reliance on statistics and statistical theory in business, and the first-
ever known control chart was made in 1924.
• It was during this time that Japan was faced with a harsh industrial economic environment. Its
citizens were thought to be largely illiterate, and its products were known to be of low quality.
Key businesses in Japan saw these deficiencies and looked to make a change. Relying on
pioneers in statistical thinking, companies such as Toyota integrated the idea of quality
management and quality control into their production processes.
• By the end of the 1960s, Japan completely flipped its narrative and became known as one of
the most efficient export countries, with some of the most admired products. Effective quality
management resulted in better products that could be produced at a cheaper price.
 A. MANAGING QUALITY
Here are 6 steps to develop a quality control process:
1. Set your quality standards.
In some industries, standards are set by an outside body, such as an
industry association, the local health and safety inspector, or a government
regulatory agency. In others, there aren't any official quality standards, so
you'll need to set your own. Each department of a business will have
different quality control standards. 
 MANAGING QUALITY
2. Decide which quality standards to focus on.
Begin by focusing on the most important measures — those that have the
biggest effect on your profits and your customer experience. This will enable
business to get results quickly and also keeps the team from becoming
overwhelmed.
 MANAGING QUALITY
3. Create operational processes to deliver quality.
W. Edwards Deming, the founder of modern quality control, believed
that well-designed processes lead to high-quality products and services. If
you create good processes, continually measure the results of the processes,
and work to consistently improve the process, your product or service will
get better and better. Start with your critical operations then create step-by-
step processes that include benchmarks.
 MANAGING QUALITY
4. Review your results.
Most business software, from financial and accounting apps to customer
relationship management or customer service tools, lets you customize the
information you collect and use dashboards to view it at a glance. Review
your data regularly to see how well your company is meeting its quality
standards.
 MANAGING QUALITY
5.Get feedback.
Use measurable feedback from external sources, such as customer
surveys, online ratings and reviews and net promoter scores (NPS), to get a
fuller picture of product and service quality. Also, get regular feedback from
employees. How well are the operational processes working to deliver
quality? How could they be improved?
 MANAGING QUALITY
6. Make improvements.
Once you’re meeting your quality control standards, don't stop there. No
matter how well your processes are running, quality control shows there's
always room for improvement, and making small changes can pay off in big
ways.  
 KEY TAKEAWAYS
• Quality management is the act of overseeing all activities and tasks
needed to maintain a desired level of excellence.
• Quality management includes the determination of a quality policy,
creating and implementing quality planning and assurance, and quality
control and quality improvement.
• TQM requires that all stakeholders in a business work together to improve
processes, products, services and the culture of the company itself.
 Real-World Example of Quality
Management
• The most famous example of TQM is Toyota's implementation of the 
Kanban system. A kanban is a physical signal that creates a chain
reaction, resulting in a specific action. Toyota used this idea to implement
its just-in-time (JIT) inventory process. To make its assembly line more
efficient, the company decided to keep just enough inventory on hand to
fill customer orders as they were generated.
 B. QUALITY STARTS WITH
UNDERSTANDING THE NEEDS
Customer Satisfaction
• Customer is the Boss, he is the ‘King’.
• Customer dictates the market trends and direction.
• Customer not only has needs to be supplied (basic performance
functions).
• Also he ‘wants what he wants (additional features satisfy him and
influence his purchase decision).
 How to satisfy customers?
Preliminary set of specifications which can be used as the basis for a service or
product design through various techniques of research:
• Surveys-questionnaires;
• Panel or focus group techniques;
• In-depth interviews;
• Brainstorming and discussions;
• Role of rehearsal and reversal; and
• Interrogation of trade associations
 How to satisfy customers?
• Marketing processes establish the true requirements for the product or service.
• The requirements must be communicated properly throughout the organization
in the form of specifications.
• Excellent communication between customers and suppliers is the key to a total
quality performance – the organization must establish feedback systems, such
as CRM, to gather customer in formation.
• Appropriate research techniques should be used to understand the ‘market’ and
keep close to customers and maintain the external perspective.
 KEY TAKEAWAYS
Quality is fitness for use:
• Quality means that the product or service carries out the intended function.
• Quality is the amount that the product or service costs a user if it doesn't
function properly according to the contact undertaken.
• Quality is meeting the customers' expectations:
• Quality is satisfying the customer.
• The quality of a product or service is meeting a customer's expectations.
 C. QUALITY IN ALL FUNCTIONS
• All members of an organization need to work together on organization-wide
quality improvement.
• The cooperation of everyone at every interface is necessary to achieve
improvements in performance, which can only happen if the top management is
really committed.
• Quality keeps the promises made when an order is taken or a commitment is made.
• The product or service is free from deficiencies.
• Quality means that all specifications have been met.
 REFERENCES
• Quality Management, Barone, Adam, July 28, 2020,
https://www.investopedia.com/terms/q/quality-management.asp#:~:text=K
ey%20Takeaways-,Quality%20management%20is%20the%20act%20of%
20overseeing%20all%20activities%20and,quality%20control%20and%20
quality%20improvement
.
• https://
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=2ahUKEwi2icOL18_rAhUDL6YKHe6JCx0QsAR6BAgJEAE&biw=136
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