TOTAL QUALITY MANAGEMENT

TOTAL QUALITY MANAGEMENT
(TQM)
Quality Culture: Changing Hearts, Minds
and Attitudes
• MAJOR TOPICS
• Understanding What a Quality Culture Is
• Quality Culture versus Traditional Cultures
• Activating Cultural Change
• Changing Leaders to Activate Change
• Laying the Groundwork for a Quality Culture
• Learning What a Quality Culture Looks Like
• Countering Resistance to Cultural Change
• Establishing a Quality Culture
• Maintaining a Quality Culture
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and Attitudes
• A quality culture is an organizational value system that results in
an environment that is conducive to the establishment and
continual improvement of quality. It consists of values, traditions,
procedures, and expectations that promote quality.
• Implementing total quality necessitates cultural change in an
organization, for the following reasons:
• Change cannot occur in a hostile environment.
• Moving to total quality takes time.
• It can be difficult to overcome the past
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and Attitudes
• Change can be difficult because resisting change is natural
human behavior. In any organization there will be advocates of
change and resisters.
• Sometimes advocates focus so intently on the expected benefits
of change that they fail to realize how the change will be
perceived by potential resisters. People resist change for the
following reasons:
• Uncertainty
• More work
• Fear
• Loss of Control
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and Attitudes
• To overcome resistance to change, advocates can apply the
following strategies:
• Involve potential resisters.
• Avoid surprises.
• Move slowly at first.
• Start small and be flexible.
• Create a positive environment.
• Incorporate the change.
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and Attitudes
• Provide a quid pro quo.
• Respond quickly and positively.
• Work with established leaders.
• Treat people with dignity and respect.
• Be constructive.
• Strategies for establishing a quality culture include the following:
• Identify the changes needed.
• Put the planned changes in writing.
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and Attitudes
• Develop a plan for making the changes.
• Understand the emotional transition process.
• Identify key people and make them advocates.
• Take a hearts and minds approach.
• Apply courtship strategies.
• Support.
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Quality Role Managing Organization
• Total Quality Management (TQM) is a comprehensive system for
achieving continuous improvement in customer satisfaction.
• It is a philosophy of total integration of the business to achieve
the required result. The goal is to achieve greater efficiency and
effectiveness, lower operating cost and increased market share.
• TQM practices focus on satisfying customer needs. This means
making the needs of the customer the priority, expanding the
relationship beyond traditional services and incorporating the
customer’s needs in the company’s business plan and corporate
strategy.
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• TQM philosophy is so called because:
- It involves every single piece of work done in the organization
- It involves everybody in the organization
- It requires total commitment.
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• The aim of TQM is to achieve zero defects in everything done in
the organization, i.e. to do error-free work. To achieve this
means everything we do must be right, first time, every time.
The common theme in TQM is "get it right first time, every time’’.
• TQM means changing the way people do things so as minimize
the potential for defects. The TQM approach uses statistical
methods to find problems that cause errors or defects. The aim is
to achieve 100% in everything done in the organization i.e. we
aim at perfection.
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• Quality systems integration requires that the business looks out
for the customer while the customer looks out for the survival of
the business. For, if there is no business, there will be no
product. If there is no product, customers’ needs cannot be met.
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• We must aim at 100% quality because doing otherwise leads to
wastage. To appreciate the effects of mistakes, consider a
process that is 99% perfect. That process will produce 10,000
defects per million parts. The total yield (number of non-
defective units) from a process is determined by a combination
of the performance levels of all the steps making up the process.
• If a process consists of 20 steps and each step is 98 percent
perfect, then the performance of the overall process will be
66.7608%. Thus, the process will produce 332,392 defects per
million parts.
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• Excellent organizations allow for no more than 3.4 defects per
million parts in manufactured goods or 3.4 mistakes per million
activities in a service operation. A process will need to be
99.99966% perfect in order to produce only 3.4 defects per
million. This is called the six sigma approach to TQM.
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• Achievement of excellence requires totally committed leadership.
It is the role of top management to communicate the vision of
the organization, its mission and philosophy, and channel the
energies of their people towards the achievement of set goals.
Achievement of excellence therefore is rooted in having a clear
vision, mission and philosophy.
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• Vision is a total concept of what an organization is trying to
become. It seeks to focus the organization on the future. Vision
must give focus and a sense of direction. Peter Drucker has said,
"The definition of vision must be rooted in providing answers to
probing questions such as ‘‘What is our business? What will it be?
What should it be?’’
• Mission seeks to answer the question "What are we here to do?’’
It is an umbrella statement. Anything that falls within that
umbrella is what the company does, anything that does not fall
within it the company does not do.
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Quality Management Concept
• MAJOR TOPICS
• What is Quality?
• The Total Quality Approach Defined
• Two Views of Quality
• Key Elements of Total Quality
• Total Quality Pioneers
• Keys to Total Quality Success
• How is Six Sigma Achieved?
• The Future of Quality Management
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• Quality has been defined in a number of ways. When viewed
from a consumer’s perspective, it means meeting or exceeding
customer expectations.
• Total quality is an approach to doing business that attempts to
maximize an organization’s competitiveness through the
continual improvement of the quality of its products, services,
people, processes, and environments.
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• Key characteristics of the total quality approach are as follows:
strategically based, customer focus, obsession with quality,
scientific approach, long-term commitment, teamwork, employee
involvement and empowerment, continual process improvement,
bottom-up education and training, freedom through control, and
unity of purpose.
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• The rationale for total quality can be found in the need to
compete in the global marketplace. Countries that are competing
successfully in the global marketplace are seeing their quality of
living improve. Those that cannot are seeing theirs decline.
• W. Edward Deming is best known for his Fourteen Points, the
Deming Cycle, and the Seven Deadly Diseases.
• Joseph M. Juran is best known for Juran’s Three Basic Steps to
Progress, Juran’s Ten Steps to Quality Improvement, the Pareto
Principle, and the Juran Trilogy.
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• Common errors made when starting quality initiatives include

senior management delegation and poor leadership; team
mania; the deployment process; a narrow, dogmatic approach;
and confusion about the differences among education,
awareness, inspiration, and skill building.
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• Trends affecting the future of quality management include
demanding global customers, shifting customer expectations,
opposing economic pressures, and new approaches to
management.
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• The American Society for Quality (ASQ) offers certifications in a variety of
disciplines including
• Manager of Quality/Organizational Excellence,
• Quality Engineer,
• Reliability Engineer,
• Software Quality Engineer,
• Quality Auditor,
• Six Sigma Black Belt,
• Six Sigma Green Belt,
• Quality Technician,
• Calibration Technician,
• Quality Improvement Associate,
• Quality Inspector,
• Quality Process Analyst,
• Hazard Analysis and Critical Point Auditor, 22
Prerequisites and Stages of TQM
Evolution
• Before the concepts and ideas of TQM were formalized, much
work had taken place over the centuries to reach this stage. This
section charts the evolution, from inspection through to the
present day concepts of total quality.
• During the early days of manufacturing, an operative’s work was
inspected and a decision made whether to accept or reject it. As
businesses became larger, so too did this role, and full time
inspection jobs were created.
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Evolution
• Accompanying the creation of inspection functions, other
problems arose:
• More technical problems occurred, requiring specialized skills,
often not possessed by production workers
• The inspectors lacked training
• Inspectors were ordered to accept defective goods, to
increase output
• Skilled workers were promoted into other roles, leaving less
skilled workers to perform the operational jobs, such as
manufacturing
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Evolution
• These changes led to the birth of the separate inspection
department with a “chief inspector”, reporting to either the person
in charge of manufacturing or the works manager.
• With the creation of this new department, there came new services
and issues, e.g, standards, training, recording of data and the
accuracy of measuring equipment. It became clear that the
responsibilities of the “chief inspector” were more than just product
acceptance, and a need to address defect prevention emerged.
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Evolution
• Hence the quality control department evolved, in charge of which
was a “quality control manager”, with responsibility for the
inspection services and quality control engineering
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Evolution
• In the 1920’s statistical theory began to be applied effectively to
quality control, and in 1924 Shewhart made the first sketch of a
modern control chart. His work was later developed by Deming
and the early work of Shewhart, Deming, Dodge and Romig
constitutes much of what today comprises the theory of
statistical process control (SPC). However, there was little use of
these techniques in manufacturing companies until the late
1940’s.
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Prerequisites and Stages of TQM Evolution
• At that time, Japan’s industrial system was virtually destroyed,

and it had a reputation for cheap imitation products and an
illiterate workforce. The Japanese recognized these problems and
set about solving them with the help of some notable quality
gurus – Juran, Deming and Feigenbaum.
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Evolution
• In the early 1950’s, quality management practices developed
rapidly in Japanese plants, and become a major theme in
Japanese management philosophy, such that, by 1960, quality
control and management had become a national preoccupation.
• By the late 1960’s/early 1970’s Japan’s imports into the USA and
Europe increased significantly, due to its cheaper, higher quality
products, compared to the Western counterparts.
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Evolution
• In 1969 the first international conference on quality control,
sponsored by Japan, America and Europe, was held in Tokyo. In
a paper given by Feigenbaum, the term “total quality” was used
for the first time, and referred to wider issues such as planning,
organisation and management responsibility. Ishikawa gave a
paper explaining how “total quality control” in Japan was
different, it meaning “company wide quality control”, and
describing how all employees, from top management to the
workers, must study and participate in quality control. Company
wide quality management was common in Japanese companies
by the late 1970’s.
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Evolution
• The quality revolution in the West was slow to follow, and did not
begin until the early 1980’s, when companies introduced their
own quality programmes and initiatives to counter the Japanese
success. Total quality management (TQM) became the centre of
these drives in most cases.
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Evolution
• History of Quality
• There are lessons to be learned from the experiences of the
successful companies. The common factors are: Focusing on
customer needs, upper management in charge of quality,
training the entire hierarchy to manage for quality, and
employee involvement - Joseph Juran, World War II and the
Quality Movement
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Evolution
• Modern Quality Management
• Bell Laboratories was the birthplace of modern quality
management
• Walter Shewhart: Process Oriented Quality Control
• Both Deming and Juran worked for Bell
• British Standards 600 established 1935
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Evolution
• World War II
Large expansion in quality control activities
• “One may even speculate that the second World War was won
by quality control and by the utilization of modern statistics.
Certain statistical methods researched and utilized by the
allied powers were so effective that they were classified as
military secrets until the surrender of Nazi Germany.” - Kaoru
Ishikawa, What is Total Quality Control
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Evolution
• The Postwar period
• ASQC was established at 1946
• Changed name to ASQ at 1997
• After war the attitude was that American manufacturers could
sell whatever they produced, so who needed quality
• Joseph Juran deserves lot of credit:
• “It is important that top management be quality-
minded. In the absence of sincere manifestation of
interest at the top, little will happen”
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Evolution
• The 1960’s
• Baby boomers with increased incomes were not interested in
quality
• Only positive direction was the change of focus from the
factory floor to the entire production process - Armand V.
Feigenbaum, Total Quality Control: Engineering and
Management
• No focus on people like Japanese
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Evolution
• The 1970’s
• Troubled time for US manufacturers due to Japanese
increased success
• Excuses: Japan depends of cheap labor, Japanese workers
are exploited, there is something in their culture,
Americans are lazy
• Motorola and Whirlpool were good examples of poor quality
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Prerequisites and Stages of TQM Evolution
• The 1980’s
• Discovery of quality circles and Phil Crosby
• Crosby’s book Quality is Free a huge success
• Ishikawa brought the Japanese way of quality to US through
his book What is Total Quality Control
• Still, American managers still didn’t get the message
Evolution
• Total Quality Management
• Concept emerged during the 80’s from a variety of different
sources
• SEMATECH’s definition:
• TQM is a holistic business management methodology that
aligns the activities of all employees in an organization with
the common focus of customer satisfaction through
continuous improvement of all activities, goods and
services
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Evolution
• Early TQM successes
• Nashua
• Xerox
• Motorola
• Intel
• Dayton-Hudson
• Corning
• Hewlett-Packard
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Evolution
• The 1990’s
• First clear signs of the payoffs of TQM finally emerged
• Small number of US companies raised the quality in a world
class level
• However, there were also problems
• Hubble Space Telescope
• “The Seal of the Navel Academy is hereunto affixed” - US
Naval Academy diplomas
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Evolution
• World Trade
• Growing importance of the world trade caused need for world
wide quality standards and accelerated unification of Europe
and development of third world countries
• ISO 9000 standards were developed
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Total Quality Management Gurus and
Business Excellence Model
• What is a quality guru?
• A guru, by definition, is a good person, a wise person and a
teacher. A quality guru should be all of these, plus have a
concept and approach to quality within business that has
made a major and lasting impact. The gurus mentioned in this
section have done, and continue to do, that, in some cases,
even after their death.
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Total Quality Management Gurus
• The gurus: There have been three groups of gurus since the
1940’s:
• Early 1950’s - Americans who took the messages of quality to
Japan
• Late 1950’s - Japanese who developed new concepts in
response to the Americans
• 1970’s-1980’s - Western gurus who followed the Japanese
industrial success
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• The Americans who went to Japan:
• W Edwards Deming placed great importance and responsibility
on management, at both the individual and company level,
believing management to be responsible for 94% of quality
problems. His fourteen point plan is a complete philosophy of
management, that can be applied to small or large organizations
in the public, private or service sectors:
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• Deming’s Fourteen point plan
• Create constancy of purpose towards improvement of product
and service
• Adopt the new philosophy. We can no longer live with commonly
accepted levels of delay, mistakes and defective workmanship
• Cease dependence on mass inspection. Instead, require
statistical evidence that quality is built in
• End the practice of awarding business on the basis of price
• Find problems. It is management’s job to work continually on
the system
• Institute modern methods of training on the job
• Institute modern methods of supervision of production workers,
The responsibility of foremen must be changed from numbers to
quality 46
• Deming’s Fourteen point plan (cont.)
• Drive out fear, so that everyone may work effectively for the
company
• Break down barriers between departments
• Eliminate numerical goals, posters and slogans for the
workforce asking for new levels of productivity without
providing methods
• Eliminate work standards that prescribe numerical quotas
• Remove barriers that stand between the hourly worker and
their right to pride of workmanship
• Institute a vigorous programme of education and retraining
• Create a structure in top management that will push on the
above points every day 47
• He believed that adoption of, and action on, the fourteen points
was a signal that management intended to stay in business.
Deming also encouraged a systematic approach to problem
solving and promoted the widely known Plan, Do, Check, Act
(PDCA) cycle. The PDCA cycle is also known as the Deming
cycle, although it was developed by a colleague of Deming, Dr
Shewhart.
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• Dr Joseph M Juran developed the quality trilogy – quality
planning, quality control and quality improvement. Good quality
management requires quality actions to be planned out,
improved and controlled. The process achieves control at one
level of quality performance, then plans are made to improve the
performance on a project by project basis, using tools and
techniques such as Pareto analysis. This activity eventually
achieves breakthrough to an improved level, which is again
controlled, to prevent any deterioration.
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• Armand V Feigenbaum was the originator of “total quality
control”, often referred to as total quality.
• He defined it as: “An effective system for integrating quality
development, quality maintenance and quality improvement
efforts of the various groups within an organisation, so as to
enable production and service at the most economical levels that
allow full customer satisfaction”.
• He saw it as a business method and proposed three steps to
quality:
• Quality leadership
• Modern quality technology
• Organisational commitment
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• The Japanese:
• Dr Kaoru Ishikawa made many contributions to quality, the
most noteworthy being his total quality viewpoint, company wide
quality control, his emphasis on the human side of quality, the
Ishikawa diagram and the assembly and use of the “seven basic
tools of quality”:
• Pareto analysis - which are the big problems?
• Cause and effect diagrams - what causes the problems?
• Stratification - how is the data made up?
• Check sheets - how often it occurs or is done?
• Histograms - what do overall variations look like?
• Scatter charts - what are the relationships between factors?
• Process control charts - which variations to control and how?
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• Dr Genichi Taguchi believed it is preferable to design product
that is robust or insensitive to variation in the manufacturing
process, rather than attempt to control all the many variations
during actual manufacture.
• To put this idea into practice, he took the already established
knowledge on experimental design and made it more usable and
practical for quality professionals. His message was concerned
with the routine optimization of product and process prior to
manufacture rather than quality through inspection.
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• Quality and reliability are pushed back to the design stage where
they really belong, and he broke down off-line quality into three
stages:
• System design
• Parameter design
• Tolerance design
• “Taguchi methodology” is fundamentally a prototyping method
that enables the designer to identify the optimal settings to
produce a robust product that can survive manufacturing time
after time, piece after piece, and provide what the customer
wants. Today, companies see a close link between Taguchi
methods, which can be viewed along a continuum, and quality
function deployment (QFD).
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• Shigeo Shingo is strongly associated with Just-in-Time
manufacturing, and was the inventor of the single minute
exchange of die (SMED) system, in which set up times are
reduced from hours to minutes, and the Poka-Yoke (mistake
proofing) system. In Poka Yoke, defects are examined, the
production system stopped and immediate feedback given so
that the root causes of the problem may be identified and
prevented from occurring again. The addition of a checklist
recognises that humans can forget or make mistakes!
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• Western Gurus:
• Philip B Crosby is known for the concepts of “Quality is Free”
and “Zero Defects”, and his quality improvement process is
based on his four absolutes of quality:
• Quality is conformance to requirements
• The system of quality is prevention
• The performance standard is zero defect
• The measurement of quality is the price of non-conformance
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• Tom Peters identified leadership as being central to the quality
improvement process, discarding the word “Management” for
“Leadership”. The new role is of a facilitator, and the basis is
“Managing by walking about” (MBWA), enabling the leader to
keep in touch with customers, innovation and people, the three
main areas in the pursuit of excellence.
• He believes that, as the effective leader walks, at least 3 major
activities are happening:
• Listening - suggests caring
• Teaching - values are transmitted
• Facilitating - able to give on-the-spot help
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• Frederick Taylor (1856-1915)

• Inspection
• Gauging
• Walter Shewhart (Bell System) (1891-1967)
• Developed Statistical control charts
• Mentored Deming
• PDCA cycle (shared with Deming)
• Identified 2 causes of variation : change and assignable
• H.G Romig (1892-1964) and Harold Dodge (1893-1976) (Bell System)

• Acceptance sampling tables
• W. (William) Edwards Deming (1900-1993)
• Trained in engineering, mathematics, and physics
• Physics professor, U.S Census Bureau, USDA, consultant
• Taught SQC to Japanese QC people (1947-1965)
• PDCA cycle (shared with Shewhart)
• Honored by Japanese prize in his name
• W. (William) Edwards Deming (cont’d)

• 14 points based on:
• Constancy of purpose
• Continual improvement
• Profound knowledge
• Appreciate for a system
• A theory of variation
• A theory of knowledge
• Joseph M. Juran (Bell System) (1904-2008)

• Also lectured in Japan
• Authored/Edited Quality Control Handbook
• Built on Pareto concept
• “Quality Trilogy” concept
• Quality planning
• Quality control
• Quality improvement
• Armand Feigenbaum (GE, General Systems Company)

• “Cost of nonconformance”
• Total quality control concept
• Authored Total Quality Control
• 40 steps in quality principles
• TQC is system for integration…
• Standards, appraisal, corrective action
• Technological and human factors
• 4 categories of quality costs
• Control quality at the source
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• Philip Crosby (Martin Marietta, ITT, PCA) (1926-2001)

• Zero Defects
• Authored Quality is Free, Quality Without Tears
• Started Quality College (multiple sites)
• Company teams trained
• Emphasized behavioral change
• Kaoru Ishikawa (1915-1989)

• Quality Circles
• 7 Basic Tools of Quality
• Cause and effect (“fishbone or Ishikawa) diagram
• Promoted statistical methods
• Recognized internal customer
• Conceived “company wide quality control”
• Genichi Taguchi (1924-2012)

• Emphasized variation reduction
• Taguchi loss function
• Shigeo Shingo (1909-1990)
• Not focused on quality but had significant impact
• Setup standardization
• Poka-yoke
• Source inspection systems
• Tom Peters
• Identified leadership as being central to the quality improvement
process,
• Discarding the word “Management” for “Leadership”.
• The new role is of a facilitator, and the basis is “Managing by
walking about” (MBWA)
• enabling the leader to keep in touch with customers, innovation
and people, the three main areas in the pursuit of excellence.
• He believes that, as the effective leader walks, at least 3 major
activities are happening:
• Listening - suggests caring
• Teaching - values are transmitted
• Facilitating - able to give on-the-spot help
Quality Guru Main Contribution
Walter A. Shewhart Contributed to understanding of process variability
Developed concept of statistical charts
W. Edwards Deming Stressed management’s responsibility for quality
Developed “14 points” to guide companies in quality
improvement
Joseph M. Juran Defined quality as “fitness for use”
Developed concept for cost quality
Armand V. Feigenbaum Introduced concept of total quality control
Philip B. Crosby Coined phrase “quality is free”
Introduced concept of zero defects
Kaoru Ishikawa Developed cause-and-effect diagrams
Identified concept “internal customer”
Genichi Taguchi Focused on product design quality
Developed Taguchi loss function
Tom Peters Managing by walking about (MBWA) 66
• Having researched successful
American organizations, he
concluded that any intelligent
approach to organizing had to
encompass, and treat as
interdependent, seven variables,
in what became known as the
McKinsey 7-S Framework,
designed to force explicit thought
about both the hardware and
software of an organization:
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• Business Excellence, as described by the European Foundation
for Quality Management (EFQM), refers to; ”Outstanding
practices in managing the organization and achieving results, all
based on a set of eight fundamental concepts”, these being,
“results orientation; customer focus; leadership and constancy of
purpose; management by processes and facts; people
development and involvement; continuous learning, innovation
and improvement; partnership development; and public
responsibility”. This definition serves as a typical example of
those put forward today.
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• In general, business excellence models have been developed by
national bodies as a basis for award programs. For most of these
bodies, the awards themselves are secondary in importance to
the wide-spread take up of the concepts of business excellence,
which ultimately lead to improved national economic
performance. By far the majority of organizations that use these
models do so for self-assessment, by which they can identify
improvement opportunities, areas of strength, and use the model
as a framework for future organizational development.
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• EFQM Excellence Model- • The model consists of nine
• This is the model behind the categories:
European Business Excellence • Leadership
Award, an award process run by • Policy and Strategy
the European Foundation for • People
Quality Management (EFQM). • Partnerships and Resources
• This framework is used as the basis • Processes
for national business excellence • Customer Results
and quality awards across Europe.
• People Results
• Society Results
• Key Performance Results
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• The fundamental concepts that underpin the EFQM Excellence
Model are:
• Results Orientation
• Customer Focus
• Leadership and Constancy of Purpose
• Management by Processes and Facts
• People Development and Involvement
• Continuous Learning, Innovation and Improvement
• Partnership Development
• Corporate Social Responsibility
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• Baldrige Criteria for • The model consists of seven
Performance Excellence – categories
• This is the model behind the US • Leadership
Malcolm Baldrige National Quality • Strategic Planning
Award, an award process • Customer & Market Focus
administered by the American • Measurement, Analysis &
Society for Quality (ASQ) and Knowledge Management
managed by the National Institute
of Science and Technology (NIST), • Workforce Focus
an agency of the US department of • Process Management
Commerce. This framework is used • Business Results
as the basis for over 70 other
national Business Excellence/Quality
awards around the world. 72
• The core concepts of the Baldrige Criteria for Performance
Excellence are
• Visionary leadership
• Customer-driven excellence
• Organizational and personal learning
• Valuing employees and partners
• Agility
• Focus on the future
• Managing for innovation
• Management by fact
• Social responsibility
• Focus on results and creating value
• Systems perspective 73
Organization Commitment to Satisfy
Customer
• MAJOR TOPICS
• Understanding Who Is a Customer
• Understanding Customer-Defined Quality
• Identifying External Customer Needs
• Identifying Internal Customer Needs
• Communicating with Customers
• Using Customer Feedback to Make Design Improvements
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Customer
• Customer Satisfaction Process
• Customer-Defined Value
• Customer Value Analysis
• Customer Retention
• Establishing a Customer Focus
• Recognizing the Customer-Driven Organization
• Value Perception and Customer Loyalty
• Customer Loyalty Model
• Customer Loyalty versus Customer Profitability
• Customers as Innovation Partners
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Customer
• Historically, customers were considered who used a company’s
products and suppliers were outsiders who provided the
materials needed to produce the products. A more contemporary
view is that every organization has both internal and external
customers.
• An external customer is the one referred to in the traditional
definition. An internal customer is any employee whose work
depends on that of employees whose work precedes his or hers.
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Customer
• In a total quality setting, customers define quality. Therefore,
customer satisfaction must be the highest priority. Customer
satisfaction is achieved by producing high-quality products that
meet or exceed expectations. It must be renewed with each
purchase.
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Customer
• The key to establishing a customer focus is to put employees in
touch with customers so that customer needs are known and
understood.
• The six-step strategy for identifying customer needs is as
follows: speculate about results, develop an information-
gathering plan, gather information, analyze the results, check
the validity of conclusions, and take action.
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Customer
• Customer needs are not static. Therefore, constant contact with
customers is essential in a total quality setting. Whenever
possible, this contact should be in person or by telephone.
Written surveys can be used, but they will not produce the level
of feedback that personal contact can generate.
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Customer
• Quality function deployment (QFD) is a mechanism for putting
into operation the concept of building in quality. It makes
customer feedback a normal part of the product development
process, thereby improving customer satisfaction.
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Customer
• Measuring customer satisfaction alone is not enough. Many
customers who defect are satisfied. Organizations should, in
addition, measure customer retention.
• Organizations should go beyond satisfying customers to creating
value for them in every supplier-customer interaction.
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Customer
• The customer loyalty model consists of four components:
1) business performance,
2) global perceptions,
3) loyalty behaviors, and
4) financial outcomes.
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Customer
• The goal of organizations should be more than just earning
customer loyalty; it should be earning the loyalty of profitable
customers. Organizations should never assume a positive
correlation between customer loyalty and profitability, nor should
they assume that a customer who is initially profitable will always
be profitable.
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Customer
• An innovative approach to product development that is gaining
acceptance is turning customers into innovation partners. With
this approach, the customer is given a technological tool kit for
designing his or her own products and making product
innovations. This approach is implemented using the following
steps:
• develop a tool kit for customers that is easy to use
• increase the flexibility of your own production processes
• carefully select the first customers to use your took kit
• continually improve your tool kit
• adapt your business practices to suit the innovation
partnership approach.
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Customer
• In order to retain customers over the long term in today’s hyper-
competitive global environment, organizations must innovate. If
the key to customer loyalty is consistently providing superior
value—super quality, superior cost, and superior service—the key
to providing superior value is innovation.
• Innovation is how organizations continually improve the quality
and cost of their products as well as the quality of their services.
It is also how they continually improve (decrease) the cost of
doing business while increasing the volume of business they do.
85
Quality Function Deployment
• MAJOR TOPICS
• What Is Quality Function Deployment?
• Introducing Quality Function Deployment’s House of Quality
• Developing the Set of Customer Needs (WHATs): House of
Quality Matrix Number 1
• Planning the Improvement Strategy: House of Quality Matrix
Number 2
86
• Selecting the Technical Requirements (HOWs): House of
• Evaluating Interrelationships between WHATs and HOWs:
House of Quality Matrix Number 4
• Evaluating the Direction of Correlation between HOWs: House
of Quality Matrix Number 5
• Selecting the Design Targets (Values) of the HOWs: House of
• Quality function deployment (QFD) is a specialized method for
making customer needs/wants important components of the
design and production of the product or service.
87
• Developed by Dr. Yoji Akao in 1966, QFD combines quality
strategies with “function deployment” from the field of Value
Engineering. In a sense, with QFD the customer—the potential
user of the product—becomes part of the design team.
88
• Introducing QFD’s House
of Quality (HOQ) The heart
of QFD is the set of
interrelated matrices
known as the House of
Quality (HOQ), so named
because the complete
matrix takes on the
appearance of a house.
89
• Matrix Number 1—Customer Needs (Wants), also called Voice of
the customer (VOC)
• Customer “Needs” input data are collected, refined and
prioritized in this matrix.
• Affinity and Tree Diagrams are useful tools for refining customer
needs data.
90
• Coming out of this analysis of needs is an estimate of importance
to the customer.
• Matrix 1 might look like this:
91
• Matrix Number 2—Planning the Improvement Strategy.
• Competitive Benchmarking of our product vs. competing
products.
• Establish desired customer satisfaction goal for each need.
• Establish Improvement Factors, Sales Points, and Weighting.
92
93
• Matrix Number 3—Selecting the Technical Requirements (HOWs)
• Lists characteristics and features of a product perceived as
meeting the customer needs. (They are not design specs.)
• Developed using Matrices 1 and 2. State HOW we’ll meet
customer requirements.
94
95
• Matrix Number 4—Evaluating Interrelationships between the
WHATs and HOWs.
• At each intersection of a WHAT row with a HOW column an
estimate of strong, medium, weak, or nonexistent relationship
is entered.
96
97
• Matrix Number 5—Evaluates the Correlation (supportive or
impeding) between the Technical Requirements (HOWs).
• Each diagonal intersection of HOW columns in the roof triangle
is given a plus sign (for supportive), or minus sign (for
impeding) correlation between the two HOWs. If there is no
correlation the intersection is left blank.
98
99
• Examining each intersection assures that all important factors
are considered.
• Matrix Number 6—Selecting Design Targets of the Technical
Requirements.
• The customer requirements describe WHAT the customer needs,
and the design requirements tell HOW the company is going
provide the product characteristics
100
• Necessary to address those needs, and these design targets
specify HOW MUCH of the characteristic needs to be provided.
• Design Targets has 3 sections:
• Technical Priorities (from data already in the HOQ).
• Technical Benchmarking (newly developed data).
• Design Target Values (developed from the previous two).
101
102
Planning and Leadership Achieving
Quality
• MAJOR TOPICS
• Leadership Defined
• Leadership for Quality
• Leadership Skills: Inherited or Learned?
• Leadership, Motivation, and Inspiration
• Leadership Styles
• Leadership Styles in a Total Quality Setting
• Building and Maintaining a Following
103
Quality
• Leadership Versus Management
• Leadership and Ethics
• Leadership and Change
• Employees and Managers on Change
• Restructuring and Change
• How to Lead Change
• Lessons from Distinguished Leaders
• Servant Leadership and Stewardship
• Negative Influences on Leaders: How to Counter Them
• Leadership is the ability to inspire people to make a total, willing,
and voluntary commitment to accomplishing or exceeding
organizational goals.
104
Quality
• Good leaders overcome resistance to change, broker the needs
of constituent groups inside and outside the organization, and
establish an ethical framework. Good leaders are committed to
both the job to be done and the people who must do it. They are
good communicators and they are persuasive. Leaders should
learn to follow first and then lead.
105
Quality
• The key elements of leadership for quality are: customer focus,
obsession with quality, recognition of the structure of work,
freedom through control, unity of purpose, looking for faults in
the systems, teamwork, continuing education and training, and
emphasis on best practices/peak performance.
106
Quality
• Common leadership styles include the following: democratic,
participative, goal-oriented, and situational. The appropriate
leadership style in a total quality setting is participative taken to
a higher level.
107
Quality
• Leadership characteristics that build and maintain followership
are a sense of purpose, self-discipline, honesty, credibility,
common sense, stamina, steadfastness, and commitment.
• Leaders can build trust by applying the following strategies:
• Taking the blame
• Sharing the credit
• Pitching in and helping
• Being consistent
• Being equitable.
108
Quality
• To facilitate change in a positive way, leaders must have a clear
vision and corresponding goals, exhibit a strong sense of
responsibility, be effective communicators, have a high energy
level, and have the will to change.
109
Quality
• When restructuring, organizations should show that they care, let
employees vent, communicate, provide outplacement services,
be honest and fair, provide for change agents, have a clear
vision, offer incentives, and train.
• The change facilitation model contains the following steps:
• Develop a compelling change picture
• Communicate the change picture to all stakeholders
• Conduct a comprehensive roadblock analysis
• Remove or mitigate roadblocks
• Communicate, implement, and incorporate change.
• Implement the change
• Monitor and adjust
110
Quality
• Servant leadership and stewardship go beyond employee
empowerment to employee autonomy and seek to create an
environment in which employees perform out of the spirit of
ownership and commitment.
• Leaders can counter the negative influence of followers by:
• Keeping vision and values uppermost in their minds
• Looking for disagreement among the advisors
• Encouraging truth-telling
• Setting the right example
• Following their intuition
• Monitoring delegated work.
111
Quality Management Methods
• MAJOR TOPICS
• Total Quality Tools Defined
• The Pareto Chart
• Cause-and-Effect Diagrams
• Check Sheets
• Histograms
• Scatter Diagrams
• Run Charts and Control Charts
• Stratification
• Some Other Tools Introduced
• Management’s Role in Tool Deployment
• Pareto charts are useful for separating the important from the
trivial. They are named after Italian economist and sociologist
Vilfredo Pareto. Pareto charts are important because they can
help an organization decide where to focus limited resources.
113
114
• The Pareto Principle holds that a few significant causes lead to
the majority of problems.
• The cause-and-effect diagram was developed by the late Dr.
Kaoru Ishikawa, a noted Japanese quality expert; others have
thus called it the Ishikawa diagram. Its purpose is to help
identify and isolate the causes of problems.
115
116
• It is the only one of the seven basic quality tools that is not
based on statistics.
• The check sheet is a tool that facilitates collection of relevant
data, displaying it in a visual form easily understood by the
brain. Check sheets make it easy to collect data for specific
purposes and to present it in a way that automatically converts it
into useful information.
117
118
• Histograms have to do with variability. Two kinds of data are
commonly associated with processes: attributes data and
variables data. An attribute is something that the output product
of the process either has or does not have. Variables data are
data that result when something is measured.
119
120
• A histogram is a measurement scale across one axis and a
frequency of like measurements on the other.
• The scatter diagram is arguably the simplest of the seven basic
quality tools. It is used to determine the correlation between
two variables. It can show a positive correlation, a negative
correlation, or no correlation.
121
122
• Stratification is a tool used to investigate the cause of a problem
by grouping data into categories. Grouping of data by common
element or characteristic makes it easier to understand the data
and to draw insights from them.
123
124
• In the context of the seven total quality tools, run charts and
control charts are typically thought of as being one tool together.
The control chart is a more sophisticated version of the run
chart. The run chart records the output results of a process over
time. For this reason, the run chart is sometimes called a trend
chart.
125
126
• The weakness of the run chart is that it does not tell whether the
variation is the result of special causes or common causes. This
weakness gave rise to the control chart.
• On such a chart, data are plotted just as they are on a run chart,
but a lower control limit, an upper control limit, and a process
average are added.
127
• The plotted data stays between the upper control limit and lower
control limit while varying about the center line or average only
so long as the variation is the result of common causes such as
statistical variation.
• Other useful quality tools are five-S, flowcharts, surveys, failure
mode and effects analysis (FMEA), and design of experiments
(DOE).
128
129
• Five-S is used to eliminate waste and reduce errors, defects, and
injuries. Flowcharts are used in a total quality setting for
charting the inputs, steps, functions, and outflows of a process to
understand more fully how the process works and who or what
has input to and influence on the process, what its inputs and
outputs are, and even its timing.
130
• The survey is used to obtain relevant information from sources
that otherwise would not be heard from in the context of
providing helpful data. Failure mode and effects analysis (FMEA)
tries to identify all possible potential product or process failures
and prioritize them for elimination according to their risk.
131
132
• Design of experiments (DOE) is a sophisticated method for
experimenting with complex processes for the purpose of
optimizing them.
133
134
Organization's culture and its change
improving organization’s performance
• Organizational culture is one of the most important factors of
company’s success or failure. Each company has an
organizational culture, and depending on its strength, the
organizational culture may have a prominent impact on the
members of organization, their values and behavior.
• Organizations can be flexible or stagnant, innovative or
conservative, focusing on their external or internal environment.
135
• Because organizations are made up of individuals with different
talents, personalities, and goals, the organization will have a
distinct culture. Some aspects of this culture change when the
personnel do; other aspects seem to be fixed and enduring. The
anatomy of an organization’s culture – how the business
functions on a day-to-day base – can strongly influence that
organization’s potential for success or failure. In addition, the
ability of an organization and its leaders to cope with change and
encourage innovation also impacts mission effectiveness.
136
Organization's culture and its change improving
organization’s performance
• Organizational culture is different from world cultures, those
tapestries of shared histories, languages, beliefs, and foods,
which are the source of our identity. Our personal culture affects
how we marry, how we raise our children, how we celebrate
events, and how we mourn death.
• Organizational cultures are not so encompassing, lacking the
broad links that help define how we understand ourselves among
others. This weakness also implies that organizational cultures
are dynamic. The good news is that organizational cultures can
adapt and change to new influences quickly.
137
• Because stories help define an organization’s culture, it’s easy to
use them to change that culture. Simply get people to tell stories
that amplify the best aspects of the organization. More important,
tell positive stories often to drown out the sound of competing
stories.
• Typically, organizations try to exemplify their stories by using a
common vision and mission statement. Vision provides the
aspirations. Mission provides the direction. Unfortunately, vision and
mission statements often are poor stories. They either lack drama,
or contain too much melodrama. They are abstract and fail to relate
to day-today roles and responsibilities. They don’t engage workers.
138
• Yet, changing an organization’s culture does depend on having a
common framework. The framework can be used in various ways
to get people to share stories about how people across the
organization deliver exceptional performance.
139
• The best way to get people to share good stories is through a
cycle of inquiry, engagement, and review .
• Inquiry.
This includes soliciting answers to questions about how people
interpret skill competencies and positive values. You might ask,
“Think of someone who exemplifies teamwork. What is it that
they do that embodies this competency? How could others
learn from this example?” These sorts of questions force people
to think differently and invite them to broaden their
perspectives regarding organizational values
140
• Engagement.
This builds on common themes identified during the inquiry
phase by asking other people to comment on the stories that
were shared. You might say, “Seventy-three percent of the
people surveyed said that the best collaboration in our
organization happens among small, informal groups that share
a passion for a particular subject. Can you cite any examples of
this type of collaboration that you’ve experienced?”
141
• Review.
This action strives to uncover the best stories from the
engagement and inquiry phases, as well as determine how best
to circulate these stories throughout the organization. It also
requires some investigation of patterns and trends in how
people relate to the common references, competencies, or
other frameworks that extol the organization’s best
performance and values
142
• TIPS for PRACTICAL APPLICATION
• To manage change successfully, each step must be
communicated to employees using various communications tools,
such as paper or voice mail memos, bulletins, newsletters, focus
groups, forums, brainstorming sessions, meetings, training
tapes, multimedia presentations, performance rewards, classes,
and broad circulation of specific information, particularly articles.
143
• Each of the items on the checklist below represents a necessary
step in managing change:
• Stop the rumor mill.
• Begin a strong, targeted communications campaign.
• Make senior management commitment clear.
• Make employees aware of why the change is necessary.
• Achieve buy-in at all levels.
• Break down the barriers between employees.
• Provide training.
• Ensure that anticipatory capability is built into the culture.
144
• CORE FACTORS IN SUCCESSFUL CHANGE MANAGEMENT
These seven factors summarize the conditions, resources, and
processes that support successful change.
• Clarity. Be clear and unambiguous about the purpose of the
change, its direction, and the approach.
• Engagement. Build a sense of ownership, belonging, and
commitment; consult with and involve the people who will be
affected by the change.
• Resources. Put the needed resources in place (e.g., financial,
human, and technical) to enable the change.
• Alignment. Ensure that systems and processes (e.g., rewards,
information, accounting, and training) support the change.
145
• Leadership. Guide, train, and equip leaders at every level so
that they display consistent commitment to the change.
• Communication. Facilitate an effective two-way flow of
information; be aware of issues and questions; provide timely
responses.
• Tracking: Establish clear goals; assess progress against
these; adjust and fine-tune as necessary.
146
• Leadership development has evolved with the times. Today,
engaging a workforce and grooming young employees for future
leadership positions requires a focus on innovation, creativity,
and open communication.
• Leaders of organizations who desire innovation in their business
cultures should ask for input in decision making and guide their
staff members through creative thinking processes to ensure
followers are on the right track. In addition to stimulating
innovative ideas, allowing employees at all levels to take part in
the decision-making process will facilitate transformational
leadership development for the future of the organization.
147
• When leaders give followers the freedom to make decisions, they
are enabling employees to experiment with ideas in a safe
environment and challenge themselves with a new way of
thinking. With the ability to add to the work process, employees
will begin interacting in a way that supports innovative ideas and
influences the future of the business.
148
• OPEN COMMUNICATION INSPIRES CREATIVITY
An imperative aspect of innovation is companywide
communication that generates trust and encourages
information exchange. A culture that allows communication to
flow openly and evenly across all levels and departments will
find that employees even in entry-level positions have the tools
necessary to envision opportunities for better ideas.
149
• EMPOWERING EMPLOYEES TOWARD NEW IDEAS
When a workforce is empowered to make decisions, employees
are then able to think outside of the box and drive the
organization in new and innovative ways. The transfer of power
should take place once the employee is fully integrated and
capable of making sound decisions. The authority to make
decisions should be offered in a progressive manner, so the
employee maintains her creative momentum
150
• MOVING NEW THINKING THROUGHOUT THE ORGANIZATION
Quality employees who can provide an organization with
innovation will require options for individual development to
impact the cultural change toward innovation. It is to the
company’s advantage to use its younger employees’ needs for
skill development and job changing to propel innovation
throughout the culture.
151
• THE SUPERVISOR’S ROLE IN DRIVING INNOVATION
Younger workers in organizations are not influenced by titles
but instead by the leader’s capabilities and willingness to share
knowledge. Ideal leaders will set an example of versatility and
provide a safe environment where trust and candor are highly
valued. Successful assimilation of innovation into the
organizational culture requires leadership to foster and develop
innovation among their followers.
Employee’s Participation in Quality
Improvement Processes
• MAJOR TOPICS
• Employee Empowerment Defined
• Rationale for Empowerment
• Inhibitors of Empowerment
• Management’s Role in Empowerment
• Implementing Empowerment
• How to Recognize Empowered Employees
• Beyond Empowerment to Enlistment
153
• Empowerment means engaging employees in the thinking
processes of an organization in ways that matter, involvement
means having input. Empowerment means having input that is
heard and used, and it means giving employees ownership of
their jobs.
• Empowerment requires a change in organizational culture, but it
does not mean that managers abdicate their responsibility or
authority.
154
• The rationale for empowerment is that it is the best way to
increase creative thinking and initiative on the part of employees.
This, in turn, is an excellent way to enhance an organization’s
competitiveness. Another aspect of the rationale for
empowerment is that it can be an outstanding motivator.
155
• The primary inhibitor of empowerment is resistance to change.
Resistance may come from employees, unions, and
management. Management-related inhibitors include fear of
losing control, I’m-the-boss syndrome, status, outdated
management training, old-school syndrome, and fear of
exclusion.
156
• Management’s role in empowerment is best described as
commitment, leadership, and facilitation. The kinds of support
managers can provide include having a supportive attitude, role
modeling, training, facilitating, employing MBWA, taking quick
action on recommendations, and recognizing the
accomplishments of employees.
157
• The implementation of empowerment has four broad steps:
creating a supportive environment; targeting and overcoming
inhibitors; putting the vehicles in place; and assessing,
adjusting, and improving. Vehicles include brainstorming,
nominal group technique, quality circles, suggestion boxes, and
walking and talking.
158
• A workforce that is ready for empowerment is accustomed to
critical thinking, understands the decision-making process, and
knows where it fits into the big picture.
• Enlistment is empowerment in which ownership is not just
allowed, but expected.
159
Teamwork. Quality Circles. Training for
Achievement of Quality
• People are a fundamental building block of any TQM organization.
The only point at which true responsibility for quality can lie is
with the person or group actually doing the job or carrying out
the process.
• The complexity of most of the processes in an organization
places them beyond the control of any one individual, and the
only efficient way to tackle process improvement or re-design is
through the use of teamwork.
160
• Teamwork has many advantages:
• A greater variety of complex issues can be tackled by pooling
expertise and resources
• Problems are exposed to a greater diversity of knowledge,
skill and experience
• The approach boosts morale and ownership through
participative decision making
• Improvement opportunities that cross departmental or
functional boundaries can be more easily addressed
• The recommendations are more likely to be implemented than
if they come from an individual
161
• Employees will not engage in continuous improvement activities
without commitment from senior managers, a culture for
improvement and an effective mechanism for capturing individual
contributions. Teamwork must be driven by a strategy, have a
structure and be implemented thoughtfully and effectively.
• When properly managed and developed, teamwork improves
processes and produces results quickly and economically through
the free exchange of ideas, information, knowledge and data. It is
an essential component of a total quality organization, building
trust, improving communication and developing a culture of
interdependence, rather than one of independence.
162
• MAJOR TOPICS
• Overview of Team Building and Teamwork
• Building Teams and Making Them Work
• Four-Step Approach to Team Building
• Character Traits and Teamwork
• Teams Are Not Bossed—They are Coached
• Handling Conflict in Teams
163
• Structural Inhibitors of Teamwork
• Rewarding Team and Individual Performance
• Recognizing Teamwork and Team Players
• Leading Multicultural Teams
• A team is a group of people with a common, collective goal. The
rationale for the team approach to work is that “two heads are
better than one.”
• A group of people becomes a team when the following conditions
exist:
• There is agreement as to the mission
• Members adhere to ground rules
• There is a fair distribution of responsibility and authority
• People adapt to change.
165
• Teams can be classified as department, process improvement,
and task force teams. Factors that can promote the success of a
team are:
• Personal identity of team members
• Relationships among team members
• The team’s identity within the organization.
166
• To be an effective team leader, one should apply the following
strategies:
• Be clear on the team’s mission.
• Identify success criteria.
• Be action centered.
• Establish ground rules.
• Share information
• Cultivate team unity.
167
• One can be a good team member by applying the following
strategies:
• Gain entry.
• Be clear on the team’s mission.
• Be well prepared and participate.
• Stay in touch.
168
• After a team has been formed, a mission statement should be
drafted. A good mission statement summarizes the team’s
reason for being. It should be broad enough to allow for the
measure of progress.
169
• Character traits that promote
successful teamwork are:
• Honesty • Patience
• Selflessness • Resourcefulness
• Dependability • Punctuality
• Enthusiasm • Tolerance/Sensitivity
• Responsibility • Perseverance
• Cooperativeness
• Initiative
170
• Teams are not bossed. They are coached. Coaches are
facilitators and mentors. They promote mutual respect among
team members and foster cultural diversity.
171
• Employees will not always work well together as a team just
because it’s the right thing to do. Employees might not be willing
to trust their performance, in part, to other employees.
• Common structural inhibitors in organizations are:
• Unit structure
• Accountability
• Unit goals
• Responsibility
• Compensation
• Recognition
• Planning
• Control
172
• Team and individual compensation systems can be developed in
four steps:
• Decide what performance to measure.
• Determine how to measure the performance.
• Identify the rewards to be offered.
• Integrate related processes.
173
• Challenges faced when leading multicultural teams include
differing:
1) approaches to decision making,
2) attitudes toward authority,
3) attitudes toward work, and
4) approaches to communicating.
174
• Quality Circle is a group of workers and supervisors from same
area who address quality problems
• Process/Quality improvement teams (QITs) – focus attention on
business processed rather than separate company functions
175
• The unique feature about quality improvement teams is that
people are asked to join, and not told to do so. The training of
team members and leaders is the foundation of all successful
improvement programs to ensure people understand the
concepts of teamwork, plus the tools and techniques that are to
be employed during the improvement program, such as those
covered in the Process section.
• Quality training must be continuous to meet not only changes in
technology but also changes in the environment in which the
organization operates, its structure and most importantly, its
people.
176
• Quality training can be considered in the form of a cycle of
improvement, the elements of which are:
• Ensure training is part of the quality policy
• Allocate responsibilities for training
• Define training objectives
• Establish a training organization
• Specify quality training needs
• Prepare training programs and materials
• Implement and monitor training
• Assess the results
• Review the effectiveness of the training
177
Teamwork. Quality Circles. Training for Achievement of Quality
• Even if the quality policy remains constant, there is a continuing need to ensure that new
quality training objectives are set, either to promote improvements or to raise the standards
already achieved.
178
Continuous Improvement Principles
• MAJOR TOPICS
• Rationale for Continual Improvement
• Management’s Role in Continual Improvement
• Essential Improvement Activities
• Structure for Quality Improvement
• The Scientific Approach
• Identification of Improvement Needs
179
• Development of Improvement Plans
• Common Improvement Strategies
• Additional Improvement Strategies
• The Kaizen Approach
• Goldratt’s Theory of Constraints
• The CEDAC Approach
• The Lean Approach
• The Six Sigma Approach
• The Lean Sigma Approach
• The Theory of Contraints (TOC) and Integrated TOC, Lean,
Six Sigma (iTLS) Approach
180
• The rationale for continual improvement is that it is necessary in
order to compete in the global marketplace. Just maintaining the
status quo, even if the status quo is high quality, is like standing
still in a race.
181
• Management’s role in continual improvement is leadership.
Executive-level managers must be involved personally and
extensively. The responsibility for continual improvement cannot
be delegated.
• Essential improvement activities include the following:
• Maintaining communication
• Correcting obvious problems
182
• Looking upstream for causes – not symptoms
• Documenting problems and progress
• Monitoring change
• Structuring for quality improvement involves the following:
• Establishing a quality council
• Developing a statement of responsibilities
• Establishing the necessary infrastructure
183
• Using the scientific approach means:
• Collecting meaningful data
• Identifying root causes of problems
• Developing appropriate solutions
• Planning and making changes.
• Ways of identifying improvement needs include the following:
• Multivoting (brainstorming) for improvement candidates
184
• Identifying customer needs
• Studying how employee time is spent.
• Localizing problems before trying to solve them.
• Developing improvement plans involves the following steps:
• Understanding the process (Flow chart the process)
• Eliminating any obvious errors
• Removing slack from processes (anything that serves no
purpose)
• Reducing variation in processes (special and common causes)
• Planning for continual improvement to become a way-of-life.
185
• Commonly used improvement strategies include the following:
• Describing the process and correcting obvious problems
• Removing slack from processes (anything that serves no
purpose)
• Reducing variation in processes (special and common causes)
• Planning for continual improvement to become a way-of-life.
186
• Additional improvement strategies include the following:
• Reducing leadtime
• Flowing production
• Using group technology
• Leveling production
• Synchronizing production
• Overlapping production
• Using flexible scheduling
187
• Using pull control
• Using visual control
• Using stockless production
• Additional improvement strategies include the following:
• Using jidoka
• Reducing setup time
• Controlling work-in-process
• Improving quality
188
• Applying total cost cycles
• Using cost curves
• Using supplier partners
• Applying total productive maintenance
• Kaizen is the name given by the Japanese to the concept of
continual incremental improvement.
189
• It is a broad concept that encompasses all of the many strategies
for achieving continual improvement and entails the following
five elements:
• Straighten up (getting rid of any tools, materials, etc. not
required)
• Put things in order (so when a tool is needed, it is readily
available)
• Clean up (keeping the workplace neat and clean
190
• Standardize (on the best practices)
• Discipline (everyone adheres to the work procedures)
• CEDAC is an acronym for Cause-and-Effect Diagram with the
Addition of Cards. (This acronym is a registered trademark of
Productivity, Inc.)
191
• With CEDAC, a cause-and-effect diagram is developed, but fact
cards about problems and improvement cards containing ideas
for solving the problems are used.
• The Lean Approach is based on the just-in-time Toyota
Production System (TPS).
192
• A Lean operation is one in which a better product is developed or
a better service is delivered using less of everything required
(i.e. human, financial, technological, and physical resources).
Lean is about being flexible enough to get the right things, to the
right place, at the right time, in the right amounts.
193
• Lean is focused on elimination of all wastes, and continual
improvement of products and processes.
• Six Sigma is a statistically based approach that targets the defect
rate at 3.4 per million or less. Key elements of Six Sigma include
the DMAIC roadmap and an infrastructure of Green Belts, Black
Belts, Master Black Belts, and Champions.
• Like other approaches, Six Sigma aims for quality improvement,

but goes further to tie these quality improvement initiatives to
the financial elements of the organization.
• The Lean Six Sigma approach is not a low calorie variation of Six
Sigma, but a linking of JIT/Lean and Six Sigma that
synergistically combine the benefits of both.
• The Theory of Constraints (TOC) and Integrated TOC, Lean, Six

Sigma (iTLS) approach. focuses on the few critical elements that
limit performance of the organization by applying Theory of
Constraints tools, eliminates waste with application of Lean tools,
and reduces variability to ensure process performance and
stability with Six Sigma tools.
Benchmarking
• MAJOR TOPICS
• Benchmarking Defined
• Benchmarking versus Reengineering
• Rationale for Benchmarking
• Prerequisites to Benchmarking
• Obstacles to Successful Benchmarking
• Role of Management in Benchmarking
• Benchmarking Approach and Process
Benchmarking
• Benchmarking is a process for comparing an organization’s

operations or processes with those of a best-in-class performer.
• The objective of benchmarking is major performance
improvement for an inferior process
• Benchmarking focuses on processes and practices, not products.
Benchmarking
• Benchmarking is done between consenting organizations.

• Benchmarking partners are frequently from different industries.
• Benchmarking is a component of total quality.
Benchmarking
• When continual incremental improvement of a process isn’t

enough, benchmarking may be the best route to the needed
improvement.
• Benchmarking offers the best chance for success, but if
benchmarking is not possible, process reengineering might be
considered.
Benchmarking
• The rationale for benchmarking is that it makes no sense to stay

locked in an isolated laboratory trying to invent a new process
when that process already exists.
• Prerequisites to benchmarking include:
• Will and commitment by top management.
• Alignment with vision and strategic objectives.
Benchmarking
• Openness to new ideas.

• Knowing which processes are the important ones, and
understanding them.
• Processes documented.
• Obstacles to successful benchmarking include:
• Lacking needed skills (analysis, research, communication).
Benchmarking
• The benchmarking approach and process includes the following:

• Obtaining commitment of top management.
• Baselining your processes (Flowcharting).
• Identifying your weak processes and documenting them.
• Selecting the processes to be benchmarked.
Benchmarking
• Forming the benchmarking teams.

• Researching the best-in-class.
• Selecting candidates for best-in-class partnering.
• Forming benchmarking agreements with partners.
• Collecting the process data/information.
• Analyzing the data and establishing the performance gap.
Benchmarking
• Planning action to close the gap or surpass.

• Implementing the change(s) to the process.
• Monitoring the results.
• Updating the benchmarks, and continuing the cycle.
• Benchmarking teams must include those who operate the
processes.
Benchmarking
• Benchmarking is not restricted within industry boundaries, but

only to best-in-class processes.
• It is necessary for the benchmarker to understand its own
process before comparing it with another.
• Because best-in-class is dynamic, benchmarking should be seen
as a never-ending process.
Benchmarking
• Management has a key role in the benchmarking process,

including commitment to change, making funds available,
authorizing human resources, being actively involved, and
determining the appropriate level of disclosure.
Sustainable Development
(ISO 14001. EMAS. OHSAS 18000.)
• ISO 14001 – ISO 14001 – Environmental Management Systems,
the world’s first international environmental standard has been
helping thousands of organizations to improve their
environmental, sustainability and operational performance since
it was first published as BS 7750 in 1992.To ensure that ISO
14001 continue to serve organizations and maintain its relevance
in today’s market place, the standard has been revised. The new
standard addresses the change in environmental practices, and
ensures that the management system is future proof.
• Companies, organizations and society have a global responsibility
to grow without compromising resources for future generations.
ISO 14001 was originally written with the environment in mind
and that remains the priority for ISO 14001:2015.
(ISO 14001. EMAS. OHSAS 18000.)
• The management systems standards ISO 9001 (quality) and ISO
14001 (environment) have gained international recognition. On
the one hand, ISO 9001:2000 alone is approaching 700 000
certifications worldwide across a diverse range of organizations in
the manufacturing, service and government areas.
• On the other hand, the numbers of certifications to ISO 14001
have substantially jumped in the last few months leading to
worldwide figures as high as 120 000 being quoted.
• The demands on companies have intensified over recent years due
to rapid social political and environmental changes and standards
play a role in determining corporate performance and “ license to
operate ”. There has been a tendency to address these in a “ silo ”
fashion.
(ISO 14001. EMAS. OHSAS 18000.)
• Management system standards such as ISO 14001, EMAS, OHSAS
18001, ISO 9001 and Six Sigma contribute to determining corporate
performance.
• A sustainable approach to business needs to be supported by
integrated business systems that enhance the credibility of the
enterprise through both its performance and its products.
• These integrated business systems help organizations address
increasing regulation on environmental, trading and societal fronts
and growing demands on industry by stakeholders.
• ISO’s challenge is to ensure that individual management system
standards are compatible with increasingly integrated business
models and pressures are growing for revamped standards and
standards’ development processes.
Corporate social responsibility (Global compact.
SA 8000.)
• The broadest definition of corporate social responsibility is
concerned with what is – or should be the relationship between
global corporations, governments of countries and individual
citizens. More locally the definition is concerned with the
relationship between a corporation and the local society in which
it resides or operates. Another definition is concerned with the
relationship between a corporation and its stakeholders.
• CSR is a concept whereby companies integrate social and
environmental concerns in their business operations and in their
interaction with their stakeholders on a voluntary basis.
SA 8000.)
• It is apparent of course that any actions which an organization
undertakes will have an effect not just upon itself but also upon
the external environment within which that organization resides.
In considering the effect of the organization upon its external
environment it must be recognized that this environment
includes both the business environment in which the firm is
operating, the local societal environment in which the
organization is located and the wider global environment.
SA 8000.)
• This effect of the organization can take many forms, such as:
• The utilization of natural resources as a part of its production
processes
• The effects of competition between itself and other organizations in
the same market
• The enrichment of a local community through the creation of
employment opportunities
• Transformation of the landscape due to raw material extraction or
waste product storage
• The distribution of wealth created within the firm to the owners of
that firm (via dividends) and the workers of that firm (through
wages) and the effect of this upon the welfare of individuals
• And more recently the greatest concern has been with climate
change and the way in which the emission of greenhouse gases are
exacerbating this.
SA 8000.)
• It can be seen therefore from these examples that an
organization can have a very significant effect upon its external
environment and can actually change that environment through
its activities. It can also be seen that these different effects can
in some circumstances be views as beneficial and in other
circumstances be viewed as detrimental to the environment.
Indeed the same actions can be viewed as beneficial by some
people and detrimental by others.
SA 8000.)
• The SA8000 Standard is the leading social certification standard
for factories and organizations across the globe. It was established
by Social Accountability International in 1997 as a multi-
stakeholder initiative. Over the years, the Standard has evolved
into an overall framework that helps certified organizations
demonstrate their dedication to the fair treatment of workers
across industries and in any country.
• SA8000 measures social performance in eight areas important to
social accountability in workplaces, anchored by a management
system element that drives continuous improvement in all areas of
the Standard. It is appreciated by brands and industry leaders for
its rigorous approach to ensuring the highest quality of social
compliance in their supply chains, all the while without sacrificing
business interests.
SA 8000.)
• The Standard reflects labor provisions contained within the
Universal Declaration of Human Rights and International Labour
Organization (ILO) conventions. It also respects, complements
and supports national labor laws around the world, and currently
helps secure ethical working conditions for two million
SA 8000.)
• Regular revisions ensure the Standard’s continuing applicability
in the face of new and emergent social and human rights issues.
Organizational buyers, independent codes of conduct, and
private sector initiatives have all recognized SA8000’s multi-
sector applicability and responded to growing public interest by
integrating SA8000 criteria into their compliance processes.
Similarly, governments wishing to encourage and strengthen
social performance in the workplace have created incentive
programs specifically recognizing companies with an accredited
SA8000 certification.
SA 8000.)
• In addition to publishing SA8000 and supporting, SAI offers a
wide selection of resources to help organizations maintain and
continually improve their social performance, including capacity
building, stakeholder engagement, collaboration between buyers
and suppliers, and the development of tools to ensure continued
improvement. SAI views independent accredited certification to
the SA8000® Standard as a critical element contributing to the
company’s broader objectives of improving global labor
conditions
SA 8000.)
• Elements of the SA8000 Standard
1. Child Labor
2. Forced or Compulsory Labor
3. Health and Safety
4. Freedom of Association and Right to Collective Bargaining
5. Discrimination
6. Disciplinary Practices
7. Working Hours
8. Remuneration
9. Management System
Partnership role achieving total quality
management.
• Partnering means working together for mutual benefit. It
involves pooling resources, sharing costs, and cooperating in
ways that mutually benefit all parties involved in the partnership.
Partnerships may be formed internally (among employees) and
externally with suppliers, customers, and potential competitors.
management.
• The purpose of partnering is to enhance competitiveness. The
formation of partnerships should be a systematic process
involving such steps as development of a partnering briefing,
identification of potential partners, identification of key
decision makers, implementation of the partnership.
• Internal partnering operates on three levels:
management.
• Management-to-employees, team-to-team partnerships, and
employee-to-employee partnerships.
• The purpose of internal partnering is to harness the full
potential of the workforce and focus it on the continuous
improvement of quality.
• Internal partnering is also called employee involvement
and employee empowerment.
management.
• Successful internal partnering requires a supportive
environment, structured mechanisms, and mutually
supportive alliances.
• The goal of a supplier partnership is to create and maintain loyal,
trusting relationships that will allow both partners to win while
promoting the continuous improvement of quality, productivity,
and competitiveness.
management.
• The requirements for success in supplier partnerships include
the following:
• Supplier personnel should interact with employees who
actually use their products, the price-only criteria in the
buyer-supplier relationship should be eliminated, the
quality of products delivered should be guaranteed by the
supplier, supplier should be proficient in JIT, and both
parties should be capable of sharing information
electronically.
management.
• Supplier partnerships typically develop in the following stages:
uncertainty and tentativeness, short-term pressure, realization of
the need for new approaches, adoption of new paradigms,
awareness of potential, adoption of new values, and mature
partnering.
management.
• The rationale for forming customer partnerships is customer
satisfaction. The best way to ensure customer satisfaction is to
involve customers as partners in the product development
process. Doing so is, in turn, the best way to ensure
competitiveness. Customer-defined quality is a fundamental
aspect of total quality.
management.
• Small- and medium-sized enterprises or SMEs, even those that
compete in the same markets, can benefit from partnering. The
most widely practiced form of partnership among SMEs is the
manufacturing network. A manufacturing network is a group of
SMEs that cooperate in ways that enhance their quality,
productivity, and competitiveness.
management.
• Mutual need and interdependence are the characteristics that
make manufacturing networks succeed. Widely practiced
network activities include joint production, education and
training, marketing, product development, technology transfer,
and purchasing.
management.
• Education and business partnerships are formed to help
organizations continually improve their people and how well they
interact with process technologies. Services provided include on-
site customized training, workshops, seminars, technical
assistance, and consulting.
Implementing Total Quality Management
• MAJOR TOPICS COVERED

• Rationale for Change
• Requirements for Implementation
• Role of Top Management: Leadership
• Role of Middle Management
• Viewpoints of Those Involved
• Implementation Variation Among Organizations
• Implementation Approaches to Be Avoided

• An Implementation Approach that Works
• Getting On With It
• What to Do in the Absence of Commitment from the Top
• Implementation Strategies: ISO 9000 and Baldrige
• The traditional way of doing business presents the following

problems:
• We are bound to a short-term focus.
• Tends to be arrogant rather than customer-focused.
• We seriously underestimate the potential contribution of our
employees, particularly those in hands-on functions.
• The traditional approach equates better quality with higher
cost.
• The traditional approach is short on leadership and long on

bossmanship.
• The requirements for implementation are as follows:
• Commitment by top management
• Creation of an organization-wide steering committee
• Planning and publicizing
• Establishing an infrastructure that supports deployment and

continual improvement
• The role of top management can be summarized as providing
leadership and resources. The role of middle management is
facilitation.
• Implementation approaches that should be avoided are as
follows:
• Don’t train all employees at once.

• Don’t rush into total quality by putting too many people in too
many teams too soon.
• Don’t delegate implementation
• Don’t start an implementation before you are prepared.
• Although implementation must vary with each organization, the

20 fundamental steps must be followed, generally in the order
given. Tailoring to the organization’s specific culture, values,
strengths, and weaknesses is done in the planning phase, steps
12 through 16.
• Implementation phases are as follows:
• Preparation phase
• Planning phase
• Execution phase
• Going through the ISO 9000 registration steps will give an
organization a good start on implementing total quality.
• ISO 9000 is an international standard for providers of goods and

services that sets broad requirements for the assurance of
quality and for management’s involvement.
• The Malcolm Baldrige National Quality Award evaluates
candidates for the award according to criteria in several
categories as follows:
• Leadership
• Strategic planning
• Customer focus
• Measurement, analysis, and knowledge management
• Workforce focus
• Operation focus
• Results

TOTAL QUALITY MANAGEMENT

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TOTAL QUALITY MANAGEMENT

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TOTAL QUALITY MANAGEMENT

• Common errors made when starting quality initiatives include

• At that time, Japan’s industrial system was virtually destroyed,

• Frederick Taylor (1856-1915)

• H.G Romig (1892-1964) and Harold Dodge (1893-1976) (Bell System)

• W. (William) Edwards Deming (cont’d)

• Joseph M. Juran (Bell System) (1904-2008)

• Armand Feigenbaum (GE, General Systems Company)

• Philip Crosby (Martin Marietta, ITT, PCA) (1926-2001)

• Kaoru Ishikawa (1915-1989)

• Genichi Taguchi (1924-2012)

• Like other approaches, Six Sigma aims for quality improvement,

• The Theory of Constraints (TOC) and Integrated TOC, Lean, Six

• Benchmarking is a process for comparing an organization’s

• Benchmarking is done between consenting organizations.

• When continual incremental improvement of a process isn’t

• The rationale for benchmarking is that it makes no sense to stay

• Openness to new ideas.

• The benchmarking approach and process includes the following:

• Forming the benchmarking teams.

• Planning action to close the gap or surpass.

• Benchmarking is not restricted within industry boundaries, but

• Management has a key role in the benchmarking process,

• MAJOR TOPICS COVERED

• Implementation Approaches to Be Avoided

• The traditional way of doing business presents the following

• The traditional approach is short on leadership and long on

• Establishing an infrastructure that supports deployment and

• Don’t train all employees at once.

• Although implementation must vary with each organization, the

• ISO 9000 is an international standard for providers of goods and

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