TOTAL QUALITY LEADERSHIP

AND DESIGN FOR QUALITY

GROUP 2: FERDINAND L. DINGAL | PAMELA ROLYN R. ESGUERRA
MICHELLE DE ASIS | FRANCISS L. DATUL
 CONTENTS:

• 1. Total Quality Leadership

 Creating/Changing the Culture
 Effective Leadership
 Excellence in Leadership

• 2. Design for Quality

 Design, Innovation & Improvement
 The Design Process
 Quality Function Deployment (QFD)
 Design Quality in the Service Sector
 Total Quality Leadership
• The total quality management approach
• Creating or changing the culture

By: Ferdinand L. Dingal – Group 2

The total quality management approach
What is 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.

Understanding Total Quality Management (TQM)

Total quality management 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 the continual improvement of internal practices.
Primary Principles of Total Quality Management
 Focus on Customers
 Commitment by Employees
 Improve Continuously
 Adherence to Processes
 Strategic and Systematic Approach
 Data Utilization
 Integrate Systems
 Communication
Total Quality Management
Pros:
 Delivers stronger, higher quality products to customers
 Results in lower company-wide costs
 Minimizes waste throughout the entire production and sale
process
 Enables a company to become more adaptable

Cons:
 May require substantial financial investment to convert to TQM
practices
 Often requires conversion to TQM practices over a long period
of time
 May be met with resistance to change
 Requires company-wide buy-in to be successful
 Creating or changing the culture

The culture within an organization is formed by a number of

components:

1. Behaviors based on people interactions.

2. Norms resulting from working groups.
3. Dominant values adopted by the organization.
4. Rules of the game for ‘getting on’.
5. The climate.
Figure 3.1 Vision framework for an organization
The Bottom Line
Total quality management is the strategic framework that
encourages everyone in an organization to focus on quality
improvement. The theory holds that customer satisfaction
will increase by being operationally excellent. Many
principles drive TQM, but the overall purpose is to eliminate
errors, streamline processes, and maximize efficiency.
 Effective Leadership and
Excellence in Leadership

Group 2 | Esguerra, Pamela Rolyn R.

 Effective
Leadership
 The five requirements for effective leadership
Effective Leadership
• Effective leadership starts with the
chief executive’s vision and
develops into a strategy for
implementation.
are the following:
1. Developing and publishing clear documented corporate beliefs
and purpose – a mission statement
2. Develop clear and effective strategies and supporting plans
for achieving the mission
3. Identify the critical success factors and critical processes
4. Review the management structure
5. Empowerment – encouraging effective employee participation
1. Developing and publishing clear documented
corporate beliefs and purpose – a mission
statement

• Executives should express values and beliefs through a clear

vision of what they want their company to be and its purpose.

• Clearly defined and properly communicated beliefs and

objectives, which can be summarized in the form of vision and
mission statements, are essential if the directors, managers
and other employees are to work together as a winning team.
1. Developing and publishing clear documented
corporate beliefs and purpose – a mission statement

The beliefs and objectives should address:

● The definition of the business

● A commitment to effective leadership and quality.
● Target sectors and relationships with customers, and market or service
position.
● The role or contribution of the company, organization, or unit
● The distinctive competence – a brief statement which applies only to that
organization, company or unit.
● Indications for future direction – a brief statement of the principal plans which
would be considered.
● Commitment to monitoring performance against customers’ needs and
expectations, and continuous improvement
2. Develop clear and effective strategies and supporting
plans for achieving the mission

• The achievement of the company or service vision and mission

requires the development of business or service strategies,
including the strategic positioning in the ‘market place’.

• Plans can then be developed for implementing the strategies.

3. Identify the critical success factors and critical
processes

• The next step is the identification of the critical success

factors (CSFs), a term used to mean the most important
subgoals of a business or organization.

■ CSFs are what must be accomplished for the mission to

be achieved.

• The CSFs are followed by the key, core business processes

for the organization – the activities that must be done
particularly well for the CSFs to be achieved.
4. Review the management structure

• Directors, managers and other employees can be fully effective

only if an effective structure based on process management
exists.

• This includes both the definition of responsibilities for the

organization’s management and the operational procedures
they will use.
5. Empowerment – encouraging effective employee
participation

• For effective leadership it is necessary for management to get

very close to the employees. They must develop effective
communications – up, down and across the organization – and
take action on what is communicated; and they should encourage
good communications between all suppliers and customers

• Particular attention must be paid to the following.

⚬ Attitudes
⚬ Abilities
⚬ Participation
5. Empowerment – encouraging effective employee
participation

Particular attention must be paid to the following:

⚬ Attitudes
⮚ The key attitude for managing any winning company or
organization may be expressed as follows: ‘I will personally
understand who my customers are and what are their needs and
expectations and I will take whatever action is necessary to
satisfy them fully. I will also understand and communicate my
requirements to my suppliers, inform them of changes and
provide feedback on their performance.’
⮚ This attitude should start at the top – with the chairman or chief
executive. It must then percolate down, to be adopted by every
employee. That will happen only if managers lead by example.
5. Empowerment – encouraging effective employee
participation

Particular attention must be paid to the following:.

⚬ Abilities
⮚ Every employee should be able to do what is needed and
expected of him or her, but it is first necessary to decide what is
really needed and expected.
⮚ Training
5. Empowerment – encouraging effective employee
participation
Particular attention must be paid to the following.

⚬ Participation

￭ If all employees are to participate in making the company

or organization successful (directors and managers
included), then they must also be trained in the basics of
disciplined management. They must be trained to:

• Evaluate– the situation and define their objectives.

• Plan– to achieve those objectives fully.
• Do– implement the plans.
• Check– that the objectives are being achieved.
• Amend– take corrective action if they are not.
 Excellence in Leadership

● The vehicle for achieving excellence in leadership is Total Quality

Management.
● Using the construct of the new Oakland TQM model, the four Ps and
four Cs provide a framework for this: Planning, Performance,
Processes, People, Customers, Commitment, Culture, Communications .
 Planning
● Develop the vision and mission ● Ensure key performance results are
needed for constancy of purpose
and for long-term success.
● Develop, deploy and update policy ● Help people to know how well they
and strategy.
● Align organizational structure to
4 Ps – Planning, support delivery of policy and
strategy.
Performance, Process
Processes
and People ● Ensure through personal
involvement that the management
system is developed, implemented
and continuously improved.
● Prioritize improvement activities
and ensure they are planned on an
organization-wide basis
Performance
measured, reviewed and
improved.
are doing against the customer and
performance goals.
People
● Stimulate empowerment (‘experts’)
and teamwork to encourage creativity
and innovation.
● Encourage, support and act on
results of training, education and
learning activities.
● Motivate, support and recognize the
organization’s people – both
individually and in teams.
● Help and support people to achieve
plans, goals, objectives and targets.
● Respond to people and encourage
them to participate in improvement
activities.
 Customers Commitment
• Be involved with customers and • Be personally and actively involved
other stakeholders. in quality and improvement
• Ensure customer (external and activities.
internal) needs are understood and • Review and improve effectiveness
responded to. of own leadership.
4 Cs – Customers, • Establish and participate in
partnerships – as a customer
Commitment, Culture, demands continuous improvement
in everything.

Communications.
Culture Communications
• Develop the values and ethics to • Stimulate and encourage
support the creation of a total communication and collaboration.
quality culture. • Personally communicate the vision,
• Implement the values and ethics values, mission, policies and
through actions and behaviors. strategies.
• Ensure creativity, innovation and • Be accessible and actively listen .
learning activities are developed
and implemented.
Chapter 6:
DESIGN FOR QUALITY

By: Michelle de Asis

TQM Class | PCU | Monday | 6:30-9:00PM
January 22, 2024

INTERNAL
DESIGN FOR QUALITY

• Design, Innovation & Improvement

• The Design Process
• Quality Function Deployment (QFD)
• Design Quality in the Service Sector

INTERNAL
DESIGN, INNOVATION
AND IMPROVEMENT

In the Collins Cobuild English Language

Dictionary, design is defined as:

“the way in which something has been

planned and made, including what looks
like and how well it works.”

INTERNAL
Innovation
-entails both the invention and design of radically
new products and services, embodying novel
ideas, discoveries and advanced technologies,
and the continuous development and
improvement of existing products, services, and
processes to enhance their performance and
quality.

-includes an increase in the use of IT based

technologies in design, communication,
management, manufacturing, and service
delivery.

INTERNAL
In many organizations innovation is predominantly
either:

Technology-led - refers to the development of new

business models, ideas, and processes that are enabled
by new technological capabilities.
(i.e in some information and communications
industries)

Marketing-led – refers to clear long-term focus on core

items such as retention, customer satisfaction,
customer experience management, and lifetime value
of a customer.
(i.e in some food companies)

*But most leading innovators identify and set out to

meet the existing and potential demands profitably
and, therefore, are market-led constantly striving to
meet the requirements even more effectively through
appropriate experimentation.
INTERNAL
THE DESIGN PROCESS
In such a changing world, design is an ongoing activity,
dynamic not static, a verb not a noun – design is a process.

Commitment in the most senior management helps to

build quality throughout the design process and to
ensure good relationships and communication between
various groups and functional areas.

The design process often concerns technological

innovation in response to, or in anticipation of, changing
market requirements and trends in technology.

Those companies with impressive records of product- or

service-led growth have demonstrated a state-of-the-
art approach to innovation based on three principles:

INTERNAL
STRATEGIC BALANCE

to ensure that both old and new product

service developments are important.
Updating old products, services and
processes, ensures continuing cash
generation from which completely new
products may be funded.

INTERNAL
TOP MANAGEMENT APPPROACH

to design to set the tone and ensure

that commitment is the common
objective by visibly supporting the
design effort.

Direct control should be concentrated

on critical decision points, since over
meddling by very senior people in day
to-day project management can delay
and demotivate staff.

INTERNAL
TEAMWORK
to ensure that once projects are under
way, specialist inputs, e.g. from
marketing and technical experts, are
fused and problems are tackled
simultaneously.

The teamwork should be urgent yet

informal, for too much formality will
stifle initiative, flair and the fun of
design.

INTERNAL
DESIGNING
Many people associate design with styling of products, and
this is certainly an important aspect. But for certain products
and many service operations the secondary design
considerations are vital.

If design quality is taking care of all aspects of the customer’s

requirements, including cost, production, safe and easy use,
and maintainability of products and services, then designing
must take place in all aspects of:

• Identifying the need (including need for change).

• Developing that which satisfies the need.
• Checking the conformance to the need.
• Ensuring that the need is satisfied.

INTERNAL
Design, like any other
activity, must be
carefully managed. A
flowchart of the
various stages
and activities involved
in the design and
development process
appears in Figure 6.1.

INTERNAL
THE DESIGN AND THE
DEVELOPMENT PROCESS
By structuring the design process in Figure
6.1, it is possible to:

 Control the various stages.

 Check that they have been completed.
 Decide which management functions
need to be brought in and at what stage.
 Estimate the level of resources needed.

INTERNAL
 Certain features make control of the design process difficult:

The longer the time

Few designs are
spent on a design, the
entirely novel. An
less the increase in the
examination of most
value of the design
No design will ever be ‘new’ products,
tends
‘complete’ in the sense services or External and/or internal
to be, unless a
that, with effort, some processes will show customers will impose
technological limitations on design time
modification or that they employ
breakthrough is and cost.
improvement cannot existing techniques,
achieved. This
be made. components or systems
diminishing return from
to
the
which have been added
design effort must be
novel elements.
carefully managed.

INTERNAL
Quality Function Deployment
QFD
 What is QFD?
 is a ‘system’ for designing a product or service, based on
customer requirements, with the participation of members of all
functions of the supplier organization. It translates the
customer’s requirements into the appropriate technical
requirements for each stage.
 It is a planning tool used to fulfill customer expectations.
 A disciplined approach to product design, engineering, and
production and provides in-depth evaluation of a product
The activities included in QFD are:
1. Market research.
2. Basic research.
3. Innovation.
4. Concept design.
5. Prototype testing.
6. Final-product or service testing.
7. After-sales service and troubleshooting
Four primary phases of
QFD
Product planning:
 Identify customer requirements.
 TranslateVOC into design specifications or
product control characteristics as a planning
matrix.
 Prioritize requirements.
 Evaluatecompetition and prioritize
requirements.
Product design:

 Generate design ideas or concepts.

 Translate the outputs of the product planning
phase into individual part details that define
part characteristics.
 Identify product risks.
 Define the product specifications.
Process planning:
 Definethe product development process
and establish critical component
parameters.
 Establish critical process controls.
 Create a manufacturing process flowchart
and document process parameters (or
target values).
Process control (production
planning):
 Define
the production requirements for
each component/operation.
 Establish inspection and test methods.
 Defineperformance indicators to monitor
the production process.
 The QFD Team

Two Types of Teams

A.New product
B.Improving an existing product
 Teams consist of members from marketing, design,
quality, finance and production.
The QFD team must answer three questions--
WHO, WHAT and HOW

A.WHO are the customers?

B.WHAT does the customer need?
C.HOW will the needs be satisfied?
 The Voice of the Customer
QFD begins with marketing to find
out what exactly the customer wants
from a product
Sources for Determining Customer
Expectations

1. Focus Groups
2. Surveys
3. Complaints
4. Consultants
5. Standards
6. Federal Regulations
The QFD Team Must Continually Ask:

1. What does the customer really want?

2. What are the customer’s expectations?
3. Are the customer’s expectations used to drive the design process?
4. What can the design team do to achieve customer satisfaction?
Collecting the Data

Solicited
Unsolicited
Quantitative
Qualitative
Structured
Random
Organizing the Data
What is House of Quality (HOQ)?

 A house of quality (HOQ) involves collecting and analyzing

the “voice of the customer,” and it is a key part of the
Quality Functional Deployment technique. It is used to
define the relationship between customer desires and the
product or company’s capabilities.
QFD matrix or Grid of ‘House of Quality’
(HoQ)
Building a House
of Quality
Step 1—List Customer Requirements (WHATs)

Step 1—List Customer Requirements (WHATs)

Quality function deployment starts with a list of
goals/objectives. This list is often referred as the WHATs that a
customer needs or expects in a particular product.
Step 2—List Technical Descriptors (HOWs)

 The goal of the house of quality is to design or change the design

of a product in a way that meets or exceeds the customer
expectations. The QFD team must come up with engineering
characteristics or technical descriptors (HOWs) that will affect one
or more of the customer requirements. These technical descriptors
make up the ceiling, or second floor, of the house of quality. Each
engineering characteristic must directly affect a customer
perception and be expressed in measurable terms.
Step 3—Develop a Relationship Matrix
Between WHATs and HOWs

 The next step in building a house of quality is to compare the

customer requirements and technical descriptors and determine
their respective relationships. Tracing the relationships between
the customer requirements and the technical descriptors can
become very confusing, because each customer requirement
may affect more than one technical descriptor, and vice versa.
Step 4—Develop an Interrelationship Matrix
Between HOWs

The roof of the house of quality, called the correlation

matrix, is used to identify any interrelationships between
each of the technical descriptors. The correlation matrix
is a triangular table attached to the technical
descriptors,
Step 5—Competitive Assessments

The competitive assessments are a pair of weighted

tables (or graphs) that depict item for item how
competitive products compare with current organization
products. The competitive assessment tables are
separated into two categories, customer assessment
and technical assessment
Step 6—Develop Prioritized Customer
Requirements

 The prioritized customer requirements make up a block of

columns corresponding to each customer requirement in the
house of quality on the right side of the customer competitive
assessment. These prioritized customer requirements contain
columns for importance to customer, target value, scale-up
factor, sales point, and an absolute weight.
Step 7—Develop Prioritized Technical
Descriptors

 The prioritized technical descriptors make up a block of rows

corresponding to each technical descriptor in the house of quality below
the technical competitive assessment.
 These prioritized technical descriptors contain degree of technical
difficulty, target value, and absolute and relative weights. The QFD team
identifies technical descriptors that are most needed to fulfill customer
requirements and need improvement. These measures provide specific
objectives that guide the subsequent design and provide a means of
objectively assessing progress and minimizing subjective opinions.
 Exterior Wall = Customer requirements
 Left side = Voice of customer
 Right side = prioritized customer requirements
 Ceiling or second floor = technical descriptors
 Engineering characteristics, design constraints and parameters
 Interior walls = relationship between customer requirements and technical descriptors
 Roof = interrelationship between technical descriptors
 Foundation = prioritized technical descriptors, benchmarking, technical difficulty degrees
Design in the service
sector
 An emphasis on customer service is emerging as a method
for organizations to give the customer-added value.
However, customer service is an intangible—it is made up
of many small things, all geared to changing the customer’s
perception. Intangible characteristics are those traits that
are not quantifiable, yet contribute greatly to customer
satisfaction.
 Providing excellent customer service is different from and
more difficult to achieve than excellent product quality.
Organizations that emphasize service never stop looking for
and finding ways to serve their customers better, even if
their customers are not complaining
In terms of design, it is possible to recognize three
distinct elements in the service package – the
physical elements or facilitating goods, the explicit
service or sensual benefits, and implicit service or
psychological benefits. In addition, the particular
characteristics of service delivery systems may be
itemized:
 Intangibility
-the delivered services are non-physical. Therefore, the level of
appreciation of its value, attributes, and outcomes are significantly
low since they can only be experienced when they are bought.
 Perishability
-implies that service capacity cannot be stored, saved,
returned, or resold once rendered to a customer.
 Service inseparability, or simultaneity
is a service characteristic relating to businesses that can only
provide services while a consumer is present and actively consuming
them.

 Heterogeneity
the service quality varies from one provider or location to another.
This characteristic explains the difference in prices depending on
location and quality of services. One of the biggest causes of the
heterogeneity of services is changes in output.
Classification of Design Services

 Service factory.
 Service shop.
 Mass service.
 Professional service.
 Personal services.
 Service Attributes
 Labor intensity – the ratio of labor costs incurred to the value of
assets and equipment used (people versus equipment-based
services).
 Contact – the proportion of the total time required to provide the
service for which the consumer is present in the system
 Interaction – the extent to which the consumer actively intervenes
in the service process to change the content of the service; this
includes customer participation to provide information from which
needs can be assessed, and customer feedback from which
satisfaction levels can be inferred
 Customization – which includes choice (providing one or more
selections from a range of options, which can be single or fixed)
and adaptation (the interaction process in which the requirement is
decided, designed and delivered to match the need).
 Nature of service act – either tangible, i.e. perceptible to touch and
can be owned, or intangible, i.e. insubstantial.
 Recipient of service – either people or things.