TQM of Managers

Chapter 1
Differing Perspectives
on Quality
Chapter Objectives
1. Recognize that different dimensions of quality exist.
2. Be able to discuss the quality dimensions.
3. Communicate the seven different functional
perspectives on quality.
4. Understand why it is important to know that the
different perspectives exist.
5. Define a quality system using the three spheres.
6. Understand how the three spheres complement each
other.
7. Understand the value-added perspective on quality.
8. Discuss differing cultural perspectives on quality.
9. History and background of Quality theories
Copyright © 2017 Pearson Education, Ltd. 1-2
Why Does
Quality
Matter?

Quality
• There are several definitions of
QUALITY or QUALITY
DIMENSIONS.
• One of the most respected
collections of quality dimensions
was compiled by David Garvin of
the Harvard Business School (see
Table 1-1)

Quality

Product Quality Dimensions
Performance – Efficiency with which a product

achieves its intended purpose
Features – Attributes of a product that

supplement the product’s basic performance
Reliability – The propensity for a product to

perform consistently over its useful design life
Conformance – Adherence to certain numeric

dimensions for the product’s performance
Garvin, D., “What Does ‘Product Quality’ Really Mean?” Sloan Management Review (Fall 1984): 25-43.

Product Quality Dimensions
Durability – The degree

Serviceability – The
to which a product
ease of repair for a
tolerates stress or
product
trauma without failing
Aesthetics – The degree

Perceived quality – A
to which product
customer’s
attributes are matched
understanding of the
to consumer
goodness of a product
preferences Garvin, D., “What Does ‘Product Quality’ Really Mean?” Sloan Management Review (Fall 1984): 25-43.

Service quality is even more difficult to define than product
quality. Although services and production share many attributes,
services have more diverse quality attributes than products.
Service 1. Tangibles – The physical appearance of the service facility, the

equipment, the personnel, and the communication materials
Quality 2. Service reliability – The ability of the service provider to

perform the promised service dependably and accurately
Dimensions 3. Responsiveness – The willingness of the service provider to be

helpful and prompt in providing service
4. Assurance – The knowledge and courtesy of employees and
their ability to inspire trust and confidence
5. Empathy – Caring, individualized attention from the service
firm.
Adapted from Parasuraman, A., Zeithamel, V., and Berry, L., “A Conceptual Model of Service Quality”
1-9 Copyright © 2017 Pearson Education, Ltd. (Report No. 84-106). Copyright © 1984 by Marketing Science Institute. Reprinted by permission.
Differences
between
Product and
Services
1-10
1. Organic view of the organization:
• The organic view of the organization

Functional conceptualizes the organization as a living
organism, where different parts function
Perspective together to achieve a common purpose.
on Quality • This perspective emphasizes the
interconnectedness and interdependence of
various departments, functions, and individuals
within the organization.

2. Global supply chain model:
The supply chain perspective emphasizes the interconnected processes
involved in bringing products or services from suppliers to customers,
with a focus on optimizing efficiency, quality, and service.
• Upstream processes (supply management)
• These processes encompass all activities related to interactions with
A Supply suppliers such as supplier qualification, evaluation, and
development.
Chain • Core processes (operations management)
Perspective
• Focuses on traditional process improvement within the organization.
It involves optimizing internal processes to enhance efficiency, reduce
waste, and improve overall performance.
• Downstream processes (customer relationship
management)
• Involve all activities related to interactions with customers including
order fulfillment, shipping, customer support, and after-sales service.

An Engineering Perspective
Engineering:
• Applying mathematical problem-solving
skills and models to business and industry
problems.
• Major areas of focus in engineering
include product design and process
design, with product design engineering
covering activities from concept
development to final implementation.
Figure 1-2
1-13
Copyright © 2017 Pearson Education, Ltd.

An Engineering Perspective - Examples
Shewhart’s control process:

• Statistical process control (SPC) is another
engineering contribution to quality
management, monitoring process
capability, and stability to ensure consistent
production within specification limits.
• Involves hypothesis testing to determine if a

process is stable and capable of producing
quality products consistently. Figure 1-3

An Operations
Perspective
Systems view:
• The operations management perspective on quality
involves systematically managing processes and
resources to deliver products or services that meet
customer expectations.
• It integrates various disciplines to optimize efficiency
and enhance overall quality performance.
• It emphasize the interconnectedness and
interdependencies between different elements.

A Strategic Management Perspective
• Strategy
Strategic management perspective
integrates quality-related goals, tactics, and
strategies into overall strategic planning
• Mission
Refers to the fundamental purpose or
reason for the existence of an organization
Core values
Fundamental beliefs or guiding principles
that shape an organization's culture and
behavior. Figure 1-4
A Marketing Perspective
Customer relationship
Marketing Perceived quality
management
• Activities involved • Strategic approach • Refers to how
with directing the focused on building customers
flow of products and and maintaining subjectively perceive
services from the strong relationships the quality of a
producer to the with customers by product or service.
consumer aim to Satisfying the
create awareness. customer
expectation.

A Marketing Perspective
Primary marketing tools for influencing

customer perceptions of quality are price
and advertising.
In marketing-related quality improvement

efforts, the focus is squarely on the
customer's preferences, expectations, and
experiences.
Figure 1-5

The Human Resources Perspective
The human resources perspective in quality management encompasses the strategic management of the
workforce to enable employees to reach their full potential and contribute effectively to the
organization's objectives.
Employee empowerment Organizational design Job analysis

HR managers focus on empowering Design of reward systems, pay HR conducts job analysis to gather
employees by delegating decision- systems, organizational structure, detailed information about job
making authority to the lowest compensation, training roles, tasks, skills, and knowledge
levels in the organization. mechanisms, and employee requirements aim to find
grievance arbitration employees with both technical
skills and adaptability.
The Three Spheres of Quality
• Quality control
• Based on the scientific method, involving
analysis, relation, and generalization.
• Quality assurance
• Focuses on guaranteeing the quality of
products or services through design-
related activities to prevent quality
problems.
• Quality management
• Ties together the control and assurance
activities Figure 1-7
1-20
Other Perspectives on Quality
Value-added perspective Cultural perspectives Contingency theory

perspective
A subjective assessment of the Differences in tastes and preferences There is no theory or method for
efficacy of every step of the process among different cultures operating a business that can be
for the customer applied in all instances

History of Quality
Table 2-1

W. Edwards Deming
Gained credibility Best known for his His thinking was based
because of his influence emphasis on the on the use of statistics
on Japanese and management of a system for continual
American industry for quality improvement.
He provided lectures on
The United States hired
statistical quality control
him when they realized
to the Japanese Union of
that they were lagging
Scientists and Engineers
behind Japan in quality.
after World War II.

Deming 14 Points of
Management
Deming believed that the historic approach to quality used by
American management was wrong in one fundamental aspect:
• Poor quality was not the fault of labor.
• It resulted from poor management of the system for continual

improvement.
2-24
Deming 14 Points of
Management
1. Create constancy of purpose toward improvement of product and service with the
aim to become competitive, stay in business, and provide jobs.
2. Adopt a new philosophy. We are in a new economic age.
3. Cease dependence on mass inspection to improve quality.
4. End the practice of awarding business on the basis of price tag alone. 2-25
5. Improve constantly and forever

the system of production and
service to improve quality and
Deming 14 productivity, and thus constantly
decrease cost.
Points of
Management 6. Institute training on the job.
(cont’d)
7. Improve leadership.
2-26
8. Drive out fear so that everyone may work

effectively for the company.
Deming 14 9. Break down barriers between departments.

Points of
Management 10. Eliminate slogans, exhortations, and targets
for the workforce that ask for zero defects
(cont’d) and new levels of productivity.
11. Eliminate work standards on the factory floor.
2-27
12. Remove barriers that rob workers of

their right to pride in the quality of
their work.
Deming 14
Points of 13. Institute a vigorous program of
education and self-improvement.
Management
(cont’d) 14. Put everybody in the company to
work to accomplish the
transformation.
2-28
• Planning
The
• Providing the operating forces with the means of producing
products that can meet the customer’s needs
Juran
• Control
• A process-related activity that ensures processes are stable
and provides a relatively consistent outcome
Trilogy • Improvement
• Must be accomplished on a project-by-project basis
2-29
• Called the 80/20 Rule
Juran’s • Using Pareto’s law, the majority
Pareto
of quality problems are the result
of relatively few causes.
Law • Compare the “vital few” to the

“trivial, but useful, many”
2-30
• Great believer in training with major

contribution on the total involvement of the
operating employees in improving quality
Kaoru • Developed the basic seven tools of quality (B7)
Ishikawa • Credited with democratizing statistics
• Coined the term company-wide quality control
2-31
Ishikawa’s 11 Points
Adapted from K. Ishikawa, Guide to Quality Control (White Plains, NY: Quality Resources, 1968).
Table 2-3
• Three-step process to improving quality

• Quality leadership
• Quality technology
• Organizational commitment
Armand
Feigenbaum • Major impediments to improving quality
• Hothouse quality
• Wishful thinking
• Producing overseas
• Confining quality to the factory
2-33
• Became well known for the authorship

of his book, Quality is Free
Philip • Emphasized the zero-defects approach

and the behavioral and motivational
aspects of quality improvement rather
Crosby than statistical approaches
• Adopted a human resource approach

similar to Deming
2-34
Theoretical Framework for Quality
Management
Figure 2-6

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Chapter 1

Copyright © 2017 Pearson Education, Ltd. 1-4

Copyright © 2017 Pearson Education, Ltd. 1-5

Copyright © 2017 Pearson Education, Ltd. 1-6

Performance – Efficiency with which a product

Features – Attributes of a product that

Reliability – The propensity for a product to

Conformance – Adherence to certain numeric

Copyright © 2017 Pearson Education, Ltd. 1-7

Durability – The degree

Aesthetics – The degree

Copyright © 2017 Pearson Education, Ltd. 1-8

Service 1. Tangibles – The physical appearance of the service facility, the

Quality 2. Service reliability – The ability of the service provider to

Dimensions 3. Responsiveness – The willingness of the service provider to be

• The organic view of the organization

Copyright © 2017 Pearson Education, Ltd. 1-11

Copyright © 2017 Pearson Education, Ltd. 1-12

Copyright © 2017 Pearson Education, Ltd.

Shewhart’s control process:

• Involves hypothesis testing to determine if a

Copyright © 2017 Pearson Education, Ltd. 1-14

Copyright © 2017 Pearson Education, Ltd. 1-15

Copyright © 2017 Pearson Education, Ltd. 1-17

Primary marketing tools for influencing

In marketing-related quality improvement

Copyright © 2017 Pearson Education, Ltd. 1-18

Employee empowerment Organizational design Job analysis

Value-added perspective Cultural perspectives Contingency theory

Copyright © 2017 Pearson Education, Ltd. 1-21

Copyright © 2017 Pearson Education, Ltd. 2-22

Copyright © 2017 Pearson Education, Ltd. 2-23

• Poor quality was not the fault of labor.

• It resulted from poor management of the system for continual

2. Adopt a new philosophy. We are in a new economic age.

3. Cease dependence on mass inspection to improve quality.

5. Improve constantly and forever

8. Drive out fear so that everyone may work

Deming 14 9. Break down barriers between departments.

11. Eliminate work standards on the factory floor.

12. Remove barriers that rob workers of

• Called the 80/20 Rule

Juran’s • Using Pareto’s law, the majority

Law • Compare the “vital few” to the

• Great believer in training with major

Kaoru • Developed the basic seven tools of quality (B7)

Ishikawa • Credited with democratizing statistics

• Coined the term company-wide quality control

• Three-step process to improving quality

• Became well known for the authorship

Philip • Emphasized the zero-defects approach

Crosby than statistical approaches

• Adopted a human resource approach

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