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CAM 201: TOTAL QUALITY MANAGEMENT

CAM 201: TOTAL QUALITY MANAGEMENT

CAM 201: TOTAL QUALITY MANAGEMENT

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CAM 201: TOTAL QUALITY MANAGEMENT

About this STUDY MANUAL


CAM 201, TOTAL QUALITY MANAGEMNT, has been
produced by KCA University. All Modules produced by are
structured in the same way, as outlined below.

How this STUDY MANUAL is structured


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CHAPTERs.
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before starting your study.
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comprises:

CAM 201: TOTAL QUALITY MANAGEMENT

An introduction to the CHAPTER content.


CHAPTER outcomes.
New terminology.
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MANUAL; these may be books, articles or web sites.
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CAM 201: TOTAL QUALITY MANAGEMENT

MODULE TITLE: CAM 201 TOTAL QUALITY MANAGEMEN


Total quality management module introduce student to a very important philosophy of how to
managed in an organization so that organizations can effectively and efficiently manage the
quality of product and services so that organization can as well remain competitive. Students
must understand the importance of quality to business profitability. Having understood the basics
of quality management, they will be introduced to various concepts of quality, the importance of
customer in relation to quality as well as the role of quality leaders. The module will also
highlight the importance of employee involvement and service quality. Lastly students will be
introduced to the gurus who have greatly contributed to the growth of this philosophy.
Everyone had had an experience with poor quality. These experiences might involve an airline
that has lost a passenger s luggage, a dry cleaner that has left clothes wrinkled or stained,
purchased product that is damaged or broken, or a pizza delivery service that is often late or
delivers the wrong order. The experience of poor quality normally happens when employees of
the company either are not empowered to correct quality inadequacies or do not seem willing to
do so.
The consequences of such an attitude are lost customers and opportunities for competitors to take
advantage of the market need.
Successful companies understand the powerful impact customer-defined quality can have on
business. For this reason many competitive firms continually increase their quality standards.

Unit learning outcomes


By the end of the unit the students should be able to
Define Total Quality Management and discuss its characteristics
Clarify the cost of quality
Explain the importance of employees involvement
Discuss the role quality gurus

CAM 201: TOTAL QUALITY MANAGEMENT

TABLE OF CONTENTS
LECTURE 1:INTRODUCTION TO QUALITY MANAGEMENT ................................ 3
INTRODUCTION .................................................................................................................. 3
VIEWS ABOUTQUALITY................4
DIMENSIONS OFQUALITY.6
LECTURE 2 TOTAL QUALITY MANAGEMENT ....................................................... 10
DIFFERNCE BETWEEN TQM AND TRADITIONAL MANGEMENT......14
COST OF QUALITY .15
LECTURE3: CUSTOMER QUALITY19
MEANING OF CUSTOMER...19
CUSTOMER FEEDBACK...21
SERVICE QUALITY....21
LECTURE 4: CONTINOUS PROCESS IMPROVEMENT..26
MEANING OF CONTINOUS PROCESS IMPROVEMENT.26
HOW TO MAKE IMPROVEMT......27
KAIZENPHILOSOPY..30
LECTURE 5: LEADERSHIP AND TOTAL QUAL I TY M ANAGEM ENT.....33
INTRODUCTION AND QUALITIES OF QUALITY LEADERS..32
MISSION AND QUALITY POLICY...36
EMPLOYEE INVOLVEMENT39
LECTURE 6: PROPONENTS OF TOTAL QUAL I TY M ANAGEM ENT...41
CONTRIBUTIONS OF DR EDWARD DEMING........43
CONTRIBUTIONS OF DR JOSEPH JURAN......46
KORU ISHIKAWA..50

CAM 201: TOTAL QUALITY MANAGEMENT

LECTURE 1: INTRODUCTION TO QUALITY MANAGEMENT


1.1 Introduction
Welcome to the firs lecture on introduction to quality management. This lecture covers the
definition of quality the determinants of quality, features of quality and the dimensions of quality
and the quality hierarchy
1.2 Learning outcome
After completing the topic, you should be able to
Illustrate how Total Quality Management contributes to achievement of organizational
goals
Explain the benefits of Total Quality management
Discuss Total quality management as a process
1.3 Lecture outline
Study unit 1.3.1 Quality management
Study unit1.3.2 Different views about quality
Study unit 1.3.3 Dimensions about quality

1.3.1 QUALITY MANAGEMENT


TQM is an enhancement to the traditional way of doing business. It is the art of managing the
whole to achieve excellence. It is defined both a philosophy and a set of guiding principles that
represent the foundation of a continuously improving organization. It is the application of
quantitative methods and human resources to improve all the processes within an organization
and exceed customer needs now and in the future. It integrates fundamental management
techniques, existing improvement efforts, and technical tools under a disciplined approach.
The business environment has become very competitive and therefore the survival of most
organization depends

High quality products

Customer satisfaction

Worldwide completion demand the following to be emphasized on

Understanding customer wants

CAM 201: TOTAL QUALITY MANAGEMENT

Provide products of high quality

Keep up with the pace of change

Predict customer wants

This requires management of all activities of the organization in an effective and efficient way
the definition of quality depends on the role of the people defining it. Most consumers have a
difficult time defining quality, but they know it when they see it.
Think about how difficult it may be to define quality for products such as airline services, child
day-care facilities, college classes,
Today, there is no single universal definition of quality. Some people view quality as
performance to standards. Others view it as meeting the customer s needs or satisfying the
customer.
Fitness for use
This is a definition of quality that evaluates how well the product performs for its intended use.
Value for price paid
Quality defined in terms of product or service usefulness for the price paid.
Support services
Quality defined in terms of the support provided after the product or service is purchased.
Conformance to specifications Fitness for purpose Customer satisfaction
Quality = Performance x Expectations

1.3.2 DIFFERENT VIEW ABOUT QUALITY

Customer s view (more subjective)


the quality of the design (look, feel, function)
product does what s intended and lasts

Producer s view
conformance to requirements (Crosby)

CAM 201: TOTAL QUALITY MANAGEMENT

costs of quality (prevention, scrap, warranty)


increasing conformance raises profits

Government s view
products should be safe
not harmful to environment

Determinants of quality
Manufacturing quality supply chain
Tangible quality products starts at conception and continues as the product moves from design
to production packaging , transportation to outlets purchase and use by final consumers . Abreak
in the link of chain affects the quality of the final product
Development and design
The first point to consider quality is at the point at which the product is conceived and designed.
It is difficult to rectify a poorly conceived product at the production stage
Design determines the products reliability, durability and how the product is offered
Purchase of law materials
Raw materials must be according to specification and if not it will impact the quality of the final
product
Manufacturing
Employees at the work floor must be conscious about quality of the in a product. If a defect is
detected, an employee has the responsibility of to stop the production line until the cause of the
defect is detected
Finished products
Quality must include the packaging, shipping and if necessary the installation of products
Service quality chain
This chain exist in services and it s often shorter because the company s personnel deal directly
with clients than in the case of manufacturing
Communication

CAM 201: TOTAL QUALITY MANAGEMENT

Poor communication between concerned parties in an operation can result in perceived poor
quality.
1.3.3 DIMENSIONS OF QUALITY
Dimension 1: Performance
Does the product or service do what it is supposed to do, within its defined tolerances?
Performance is often a source of contention between customers and suppliers, particularly when
deliverables are not adequately defined within specifications.
The performance of a product often influences profitability or reputation of the end-user. As
such, many contracts or specifications include damages related to inadequate performance.

Dimension 2: Features
Does the product or services possess all of the features specified, or required for its intended
purpose?
While this dimension may seem obvious, performance specifications rarely define the features
required in a product. Thus, it s important that suppliers designing product or services from
performance specifications are familiar with its intended uses, and maintain close relationships
with the end-users.

Dimension 3: Reliability
Will the product consistently perform within specifications?
Reliability may be closely related to performance. For instance, a product specification may
define parameters for up-time, or acceptable failure rates.
Reliability is a major contributor to brand or company image, and is considered a fundamental
dimension of quality by most end-users.

Dimension 4: Conformance
Does the product or service conform to the specification?

CAM 201: TOTAL QUALITY MANAGEMENT

If it s developed based on a performance specification, does it perform as specified? If it s


developed based on a design specification, does it possess all of the features defined?
Dimension 5: Durability
How long will the product perform or last, and under what conditions?
Durability is closely related to warranty. Requirements for product durability are often included
within procurement contracts and specifications.
Dimension 6: Serviceability
Is the product relatively easy to maintain and repair?
As end users become more focused on Total Cost of Ownership than simple procurement costs,
serviceability (as well as reliability) is becoming an increasingly important dimension of quality
and criteria for product selection.
Dimension 7: Aesthetics
The way a product looks is important to end-users. The aesthetic properties of a product
contribute to a company s or brand s identity. Faults or defects in a product that diminish its
aesthetic properties, even those that do not reduce or alter other dimensions of quality, are often
cause for rejection.
Dimension 8: Perception
Perception is reality. The product or service may possess adequate or even superior dimensions
of quality, but still fall victim to negative customer or public perceptions.
As an example, a high quality product may get the reputation for being low quality based on poor
service by installation or field technicians. If the product is not installed or maintained properly,
and fails as a result, the failure is often associated with the product s quality rather than the
quality of the service it receive

Quality Hierarchy
Organizations have been using various ways over a time in assessing the quality of their
products and services. The figure below clearly shows how organizations have been progressing
in assessing quality

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Figure 1

TQM

Incorporating QA and QC Activities into


Activities aimed at satisfying the customers

Prevention
QUALITY ASSURANCE

Actions to ensure company products conforms to


Organizational requirements

QUALITY CONTROL

Operational techniques to make inspection


More efficient and reduce cost of quality

Detection

INSPECTION

Inspection of products

QA- QUALITY ASSURANCE


QC- QUALITY CONTROL

Features of quality
Quality is defined by the customer

Quality is measure of achievement of customer satisfaction

Quality is fulfilling customers requirements and needs

Quality is keeping ones word

Quality is ensuring there are no defects in products and services

Quality is ensuring fitness for use

Quality is the image of the company and customer confidence of the organization

Quality is useful to the society

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Summary
In this lesson we have learnt that:
Quality is important for organizations to succeed
The various definitions of quality and the determinants of quality
The dimensions of quality and the quality hierarchy

Suggestion for Further Reading


The student can read further on areas such as quality management in orgnizations

Activity
What is the importance of quality management?
As a quality expert in an organization, highlight the characteristics of quality
Define quality and explain the characteristics of quality
Explain the various dimensions of quality

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LECTURE TWO: TOTAL QUALITY MANAGEMENT (TQM)


2.1 Introduction
Welcome to the second lecture on Total quality management. This lecture covers the definition
of Total quality management. It tries to illustrate the difference between Total Quality
Management and traditional management in order for the student to not only gets a clear
understanding of the concept of quality management but also understand the difference. Lastly
the issue of cost of quality is introduced
2.2 Learning outcome
After completing the topic, you should be able to
Define quality management
Explain the difference between TQM and traditional management
Explain the meaning of cost of quality
2.3 .Lecture Outline
Study unit 2.3.1 Meaning of total quality management
Study unit 2.3.2 Difference between TQM and traditional Management
Study unit 2.3.3 Meaning of Cost of quality

History of TQM
The concept of quality has existed for many years, though its meaning has changed and evolved
over time. In the early twentieth century, quality management meant inspecting products to
ensure that they met specifications. In the 1940s, during World War II, quality became more
statistical in nature. Statistical sampling techniques were used to evaluate quality, and quality
control charts were used to monitor the production process. In the 1960s, with the help of socalled quality gurus, the concept took on a broader meaning. Quality began to be viewed as
something that encompassed the entire organization, not only the production process. Since all
functions were responsible for product quality and all shared the costs of poor quality, quality

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was seen as a concept that affected the entire organization.


The meaning of quality for businesses changed dramatically in the late 1970s. Before then
quality was still viewed as something that needed to be inspected and corrected. However, in the
1970s and 1980s many U.S. industries lost market share to foreign competition. In the auto
industry, manufacturers such as Toyota and Honda became major players. In the consumer goods
market, companies such as Toshiba and Sony led the way. These foreign competitors were
producing lower-priced products with considerably higher quality.
To survive, companies had to make major changes in their quality programs. Many companies
hired consultants and instituted quality training programs for their employees. A new concept of
quality was emerging. One result is that quality began to have a strategic meaning. Today,
successful companies understand that quality provides a competitive advantage. They put the
customer first and define quality as meeting or exceeding customer expectations.
Competition based on quality has grown been growing since the 70s in importance and has
generated tremendous interest,. Companies in every line of business are now focusing on
improving quality in order to be more competitive. In many industries quality excellence has
become a standard for doing business. In this competitive environment companies that do not
meet this standard simply will not survive.
The term used for today s new concept of quality is total quality management or TQM. The old
concept is reactive, designed to correct quality problems after they occur. TQM which is the new
concept is proactive, designed to build quality into the product and process design.
2.3.1 Definition of total quality management
Understanding and identifying source of variations in products and services
Philosophy and set of principles an organization uses to enable everyone in the organization to
continuously improve their abilities to meet and exceed customer satisfaction
Total Quality Management is making quality a priority means putting customer needs first. It
means meeting and exceeding customer expectations by involving everyone in the organization
through an integrated effort. Total quality management (TQM) is an integrated organizational
effort designed to improve quality at every level.

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Total made of o whole

QualityDegree of excellence a product or service provide

CAM 201: TOTAL QUALITY MANAGEMENT

ManagementAct or manner of planning organizing directing and controlling.

Therefore TQM is art of managing whole to achieve excellence

Basic concepts of TQM


There are various concepts which brings to perspective what TQM is all about
Total quality management involves committed and involved management to provide longterm top-bottom organizational support.
Total quality management focuses on the customer, both internally and externally.
It involves effective involvement and utilization of the entire work force.
Total quality management emphasizes on continuous improvement of the business and
production process.
TQM recognizes the importance of treating suppliers as partners.
TQMs success emphasizes on establishing performance measures for the processes.
Characteristics of TQM
Total quality management is customer oriented
Total quality management success demands leadership of top management
Establishment and leadership of the system lies with management
Total quality management is a strategy for continuously improving performance
It emphasizes on improving the quality of products and services

Principles of TQM
1. Constancy of purpose: short range and long range objectives aligned
2. Identify the customers Customer orientation
3. Identification of internal and external customers
4. Continuous improvement
5. Workflow as customer transactions
6. Empower front-line worker as leader
7. Quality is everybody s business

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Obstacles associated with TQM Implementation?


Lack of management commitment
Inability to change organizational culture
Improper planning
Lack of continuous training and education
Incompatible organizational structure and isolated individuals and departments
Ineffective measurement techniques and lack of access to data and results.
Paying inadequate attention to internal and external customers.
Benefits of TQM
Help in focusing on market needs
It facilitates to inspire top quality performer
TQM channels procedure necessary to achieve quality performance
TQM helps remove non-productive activities and wastes
Gears organizations understand competition and develop effective strategy
Help develop good procedures for communication
Helps to review the process needed to develop the strategy of a never ending
improvement
2.3.2 Difference between TQM and Traditional management
The table below shows the difference between total quality management and traditional
management
Table 1
TQM

Traditional management

Stresses on customers

Stresses on other resources

Puts quality first

Puts growth on sales and profits first

Quality is composed of multidimensional


attributes

Quality is conformance to
specifications

Economy of time and scope is pursued

Economy of scale is desirable

Manufacturing aim is to creating value

Producing as much as possible

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Creates connection between customers


managers and workers

Workers to work and managers to manage

Emphasizes on flexible multi skilled workers

Strong division of labor

TQM is Process oriented

Result oriented

Culture of networking among functions

Advocates flatter organizational structure

Proposed hierarchical structure of


organization
Favors many layers of authority

2.3.3 QUALITY COST


Quality Costs are defined as those costs associated with the non-achievement of productor
service quality as defined by the requirements established by the organization and itscontracts
with customers and society. In simple terms cost of quality can be simply be stated as the cost of
poor quality products.
Primary categories of Quality cost?
i. Preventive cost category
Prevention costs are all costs incurred in the process of preventing poor quality from occurring.
They include quality planning costs, such as the costs of developing and implementing a quality
plan.
ii. Appraisal cost category
Appraisal costs are incurred in the process of uncovering defects. They include the cost of
quality inspections, product testing, and performing audits to make sure that quality standards are
being met.
iii. Internal failure cost category
Internal failure costs are associated with discovering poor product quality before the product
reaches the customer site. One type of internal failure cost is rework, which is the cost of
correcting the defective item.

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iv. External failure cost category


External failure costs are associated with quality problems that occur at the customer site. These
costs can be particularly damaging because customer faith and loyalty can be difficult to regain.
They include everything from customer complaints, product returns, and repairs, to warranty
claims,
Companies that consider quality important invest heavily in prevention and appraisal costs in
order to prevent internal and external failure costs. The earlier defects are found, the less costly
they are to correct. For example, detecting and correcting defects during product design and
product production is considerably less expensive than when the defects are found at the
customer site.
Sub-elements of Preventive cost category
Marketing/Customer/User
ii. Product/Service/Design development
iii. Purchasing
IV. Operations/ v. Quality Administration
VI. Other Prevention Costs
Sub-elements of Appraisal cost category
Purchasing appraisal cost
Operations appraisal cost
External appraisal cost
Review of test and application data
Miscellaneous quality evaluations
Sub-elements of internal failure cost category
Product or Service Design costs (Internal)
Purchasing failure costs
Operations failure costs
Sub-elements of External failure cost category
Complaint investigations of customer or user service

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Returned goods
Why measure costs

Cots are measured in order to highlights to employees importance of quality to business


profitability

We measure costs in order to form a basis for decision making

To identify areas needing attention

In order to measure the effects of the actions taken by the top management

For budgeting purposes

Organizations have a critical role to play in ensuring that TQM to be successful in relations to
cost of quality. They therefore have to perform the following roles

Initiate quality cost programme

Identify and define quality cost item

Design a system for collecting quality data

Establish procedures for gathering quality cost

Link quality cost with accounting systems

Analyze and identify high cost areas requiring improvement

Develop corrective action programmes

Implement modifications

Review and rectify

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TQM as a system
The figure below tries to explain how TQM is regarded as a system. As a system TQM has
objectives which are total quality management. The principles of TQM is customer focus,
continuous improvement

Figure 2 TQM as a system


TQM AS ASYSTEM

Objective

Principles

Elements

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TOTAL QUALITY
MANAGEMENT

CUSTOMER
FOCUS

PROCESS
IMPROVEMENT

TOTAL
INVOLVEMENT

Leadership
Education and Training,
Suppor tive structure,
Reward and recognition,
Communications,
Measurement techniques

CAM 201: TOTAL QUALITY MANAGEMENT

Summary
In this lesson we have learnt that
Total quality management is how organizations manage its quality aspect to satisfy
customes
There is adifference between TOM and traditional management
Its important for organizations to measure cost of quality

Further reading
The importance of quality training

Activity
Clearly explain what you understand by total quality management
What are the obstacles that you are likely to experience in your organization while
implementing total quality management
Discuss the importance of total quality management
Differentiate between traditional management and total quality management
Explain what you understand of TQM as a process

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LECTURE THREE. CUSTOMER SATISFACTION


3.1 Introduction
Welcome to the third lecture on customer and quality. This lecture covers the definition of
customers. It illustrate the importance customer feedback in enhancing quality and lastly if
brings to focus service quality to show students that quality is not only in physical products but
in services too
3.2 Learning outcome
After completing the topic, you should be able to
Explain the importance of customer in relations to quality
Discuss the importance of feedback in relations to quality
Illustrate the customers perception of quality

3.3 Lecture Outline


Study unit3.3.1 Total quality management and customers
Study unit 3.3.2 Customers feedback
Study unit 3.3.3 Service Quality
3.3.1 TOTAL QUALITY MANAGEMENT AND CUSTOMERS
Customer is the most important asset of any organization. Success of organizations depends on
how many customers it has and how often they buy.
To increase in number customers must be satisfied manufacturing and service industries are
using satisfied customers as a sign organizational quality. Organizations need to understand the
customers need and expectations in order t win new and keep existing customers
Organizations need to continually examine their quality systems to see that they responsive to the
ever changing customers needs and requirements
Successful TQM programs begin by defining quality from the customers perspective
TQM s Customer Appr oach
The customer defines quality.
The customer is always right.

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The customer always comes first.


The customer is king.
quality begins and ends with the customer
Characteristics of customer satisfaction
1. It is far from simple
2. It is not an objective statistic, but more of feeling and attitude.
3. Therefore like people's opinion and feeling, it is subjective by nature.
4. Because of this subjective nature, it is difficult to measure.
5. The measurement of customer satisfaction is not precise.
6. The customer satisfaction should not be viewed in vacuum, i.e., it should be compared
with the level of satisfaction they have with competitor's product are service.
Types of customers
1. Internal customers - each of them receives a product or service and in exchange, providers a
product or service.
2. External customers - one who uses the product or service, the one who purchase the product,
or the who influences the sale of the product. One basic concept of TQM is focus on
customers, both internal and external.
Customer perception of quality
In an organization there is no acceptable quality level because the customer's needs, values and
expectations are constantly changing and becoming more demanding. An American Society for
Quality (ASQ) survey reveals the following end-user perception of quality
1. PerformanceThis involves fitness for use. Product or service must be ready for use at the
time of sell
2. Features-identifiable features or attributes of a product or service are psychological, time
oriented contractual , ethical and technological
3. Service- customer service gives customers and added value. This is intangible made up of

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many small things geared to changing the customer s perception. Organizations emphasizing
on quality never stop and looking for ways of serving their customers better
4. WarrantyRepresents the organizations public promise of quality product backed up by
guarantee of customer satisfaction
5. Price- Today s customers are willing to pay more to obtain value. Customers compare
products of competing firms to determine greatest value providers
6. Reputation.-At times we rate organizations by our overall experience with them.
Today customers are ready to pay a higher price to obtain value. Therefore it becomes
increasingly important for an organization to identify, verify, and update each customer s
perception of value against those of its competitors
3.3.2 CUSTOMER FEEDBACK
Soliciting and monitoring customer feedback is very important for organizations to achieve their
objectives.
Customers continuously change, they change their mind,, their expectations and their suppliers
Customer feedback is an on-going probing of the customers mind
Importance of customer feedback
i. Discover customers dissatisfaction
ii. Discover relative priorities of quality
iii. Compare performance with competition
iv. Identify customers needs
v. Determine opportunities for improvement
Feedback has become important in services as well and they determine new product
development. Effective organizations listen to the voice of the customers even when the
customers are not complaining
Listening to the voice of the customers can be accomplished by various information collecting
tools. They include
Comment card
This is a low cost method of obtaining feedback from customers. This involves comment card
attached to the warranty card and included in the product at time of purchase. The intent is to get

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simple information such as name address age, occupation and what influenced the customer to
make the purchase. There is little incentives for buyers to respond to this and the quality of the
response may not provide a true measure of customer satisfaction
Customer questionnaire
This is a popular tool for obtaining opinions and perceptions about organizations and its
products and services. This method can be costly and time consuming.
Focus Group
This is a popular way of obtaining feedback but it can be expensive too. This is important in
gathering information on the customers expectations and requirements. It tries to find out what
the customers are thinking a bout
It involves a group of customers assembled in a meeting room to answer a series of questions.
The carefully structured questions are asked by skilled moderators who have a clear
understanding of information needed
Toll free telephone numbers
This is an effective technique of receiving complaint feedback. Organization can respond more
quickly and cheaply to the complaint. Such numbers only reach those who buy particular
products
Customer visits
A visit to the customer s place of business is another way of gathering information. The
performance of the product needs to be monitored to know how it performing. Senior managers
need to be involved in these visits.
Report card
This is also an effective information gathering tool. It s usually sent to each customer on a
quarterly basis data is analyzed to determine areas of improvement
The internet
Some managers monitor discussion taking place in the internet to find out what customers are
saying about their products. Monitoring internet conversation is timely; cost is minimal and can
be a source of creative ideas

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Employee feedback
Employees are untapped source of information. Organizations more often listen to the voice of
the customers ignoring employees.
Employees can offer insights to conditions affecting quality in organizations. They can
brainstorm ideas and come up with solutions to problems identified by customers.

3.3.3 SERVICE QUALITY


Quality management is not only restricted on physical products only but its also found in service
.Service sector is a generic term which covers many industries such as health care, education,
insurance hotels transport etc.
TQM in services can be applied by analysing the unique characteristics of service operations.
Service sector has discovered the benefits of quality management and the application of TQM
principles results to better services and customer satisfaction
A service is any act or performance that one party gives to another that is essentially intangible
and does not result in ownership of anything. Services may be provided to the customer, to the
institution or both
Characteristics of service industries
Service organizations normally sell direct to the customer or user
Service companies have to be prepared to provide the service when the customer needs it
Service industry has to complete the assignment within the period desired by the customer
Services are not storable, transportable and the benefits are available to the customers at the rate
they are created
Many services include delivery of intangible products
Problems of defining service quality
Service industries have less control on factors that affect quality
There is higher level of external uncertainty because services cannot be stored and the
participation of customers in the process
Intangibility of services makes it difficult to set standards and measure them
Good service is an expectation of an individual customer which may be unknown or unstated and
may vary from customer to customer

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Participation of the customer has an impact of quality of service


Service quality is difficulty to measure because it is subjective in nature (based on ones ideas and
opinions)
Health Services (Practical Application)
Health service is spectacular in increasing the lifespan of people. This can be possible by setting
up numerous quality controls on a wide variety of activities
In health services the providers of the services are the hospitals, nursing homes clinics etc while
the buyers are the patients or clients who buy this health service.
Buyers must get quality services for which they are paying for.
Acceptable services include
Diagnosis, medicine, surgery and treatment
Indirect operations include administration, purchasing which affects the cost of services
Quality of performance related to food, housing, safety, security, attitude of employees
How to assess quality of service
Patient satisfaction survey
Hospital quality trend survey
Patient quality service report
Error rate survey
How to Improve Quality in Health Service
Rendering acceptable quality health service to patients at affordable price within reasonable time
Applying zero errors to all patient services
Maintaining continuous error prevention program
Searching for problems and trouble spots and eliminate them
Training employees on medical care, error prevention, delay time, prompt response to
customers needs etc
Training and educating employees on non-medical aspect
Driving out the fear from the minds of employees
Removing barriers to job efficiency and job satisfaction

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Determinants of service quality:


1. Reliability Involves dependability of service and consistency of performance; performing
the right service right the first time; honouring promises; accuracy.
2. Responsiveness Concerns the willingness or readiness of employees to provide service;
timeliness.
3. Competence Means possession of the necessary skills and knowledge required to
Perform the service.
4. Access Involves approachability and ease of contact; waiting time; hours of operation.
5. Courtesy Involves politeness, respect, consideration, and friendliness of contact
Personnel
6. Communication Means keeping customers informed in language they can understand;
listening to customers; adjusting language to different needs of different customers;
explaining the service itself.
7. Credibility Involves trustworthiness, believability and honesty, reputation; personal
characteristics of personnel.
8. Security Is the freedom from danger, risk or doubt; physical safety; financial security;
confidentiality.
9. Understanding Involves making the effort to understand the customer s needs; learning
the customer s specific requirements; providing individualized attention; recognizing the
regular customer.
10. Tangibles Include the physical evidence of the service; physical facilities; appearance
of employees; physical representation of the service, such as a receipt.

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Summary
In this lesson we have learnt that
Customer is the main focus of total quality management
There are various methods of collectingfeedback from customers
TQM is not only avvailable in products only but can also be applied in services.

Suggestion for Further Reading


How you can asses quality in educational services

Activity
Explain the meaning of customer and how customers influence quality of products
and services
Explain the determinants of service quality
Explain the tools you will use to collect information
Explain the service quality and why its difficult to measure service quality

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LECTURE FOUR: CONTINOUS PROCESS IMPROVEMENT


4.1 Introduction
Welcome to the fourth lecture on continuous process improvement. This lecture covers the
definition of continuous process improvement. It illustrate the importance of continuous process
improvement in enhancing quality and highlighting the most important philosophy of continuous
improvement initiated by the Japanese termed as Kaizen

4.2 Learning outcome


After completing the topic, you should be able to
Explain the importance of continuous process improvement
Discuss the meaning and importance of Kaizen
4.3 Lecture Outline
Study unit 4.3.1 Meaning of continuous process improvement
Study unit4.3. 2 How to make improvement
Study unit 4.3.3 Kaizen philosophy
4.3.1 CONTINOUS PROCESS IMPROVEMENT
Organizations should continually strive to achieve perfection by continually improving the
business process
Process Improvement is a systematic approach to improve a process. It involvesi. Documentation
ii. Measurement and
iii. Analysis For the purpose of improving the functioning of the process.
Goals of Process improvement
1. Increase Customer satisfaction.
2. Achieving higher quality
3. Reducing waste
4. Reducing cost
5. Increasing productivity
6. Speeding up the process

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Method of Process Improvement


One of the popular methods of process improvement is The Plan-Do-Study-Act Cycle. This also
referred to as either Shewhart Cycle or Deeming wheel. This is the basis for continuous
improvement activities. The method representing the process with a circle underscores its
continuing nature. There are
Four basic steps in the cycleStep-1: Plan
Begin by studying the current process. Document the process. Then collect data to identify
problems. Next, survey data and develop a plan for improvement. Specify measures of
evaluating the plan.
Step-2: Do
Implement the plan on a small scale if possible. Document any changes made during this phase.
Collect data systematically for evaluation.
Step-3: Study
Evaluate the data collection during the do phase. Check how closely the results match the
original goals of the plan phase.
Step-4: Act
If the results are successful standardized the new method and communicate the new method to
all people associated with the process. Implement training for the new method. If the results are
unsuccessful revised the plan and repeat the process or cease this project. In replicating
successful results elsewhere in the organization, the cycle is repeated. If the plan is unsuccessful
and we wish to make further modifications repeat this cycle. Employing this sequence of steps
provide a systematic approach to continuous improvement.

How to make improvement


Viewing all workers as process
Making processes effective, efficient and adaptable
Anticipating changing customer needs

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Eliminating wastes and re work


Activities not adding value to be investigated
Elimination of non-conformities
Use benchmark
Being innovative
Incorporating lesson s learned

Ways of improving
Reduce costs
Reduce errors
Meet or exceed expectations
Make processes safer
Improvement strategies
1. Repair
Short or long term
2. Refinement
3. Renovation
4. Reinvention
Phases of continuous process improvement
Identify opportunity
Analyze the current process
Develop optimal solutions
Implement changes
study the results
Standardize the solutions
Plan for future
There are a number of tools for process improvement. We are going to describe first seven is
known as seven basic quality tools. These are
Check sheets
Flowcharts

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Scatter Diagrams
Histogram
Pareto Analysis
Control Charts
Cause and effect Diagram
4.3.2 KAIZEN
Kaizen is a Japanese philosophy which encourages small improvement day after day
continuously. It is an on-going never ending improvement process
Kaizen is a Japanese workplace philosophy which focuses on making continuous small
improvements which keep a business at the top of its field. Many well-known Japanese
companies such as Canon and Toyota use kaizen, with a group approach which includes
everyone from CEOs to everyone on the factory floor. This group approach has been adopted
successfully in other regions of the world as well, but Japanese workers have refined it to an art
form.
It has been suggested that kaizen works particularly well because Japan is a collective culture,
and kaizen relies on collective values. People in more individualistic cultures may struggle with
some of the basic principles of kaizen. Kaizen also suggests that everything constantly has room
for refinement and improvement, and this value is contrary to the beliefs of some Westerners.
Principles of Kaizen
There are five underpinning principles to kaizen.
1.) The first is a heavy reliance on teamwork, in which everyone's opinion is valued and
considered.
2.) Workers also have strong personal discipline, and morale in factories must improve under
kaizen.
3.) Workers should also be confident about offering suggestions for improvement, even
when a system appears to be functioning adequately;
4.) kaizen recognizes that there is always room for improvement.
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5.) Finally, the system uses quality circles, groups of workers who meet and work together
to solve problems and come up with innovative changes.
One of the primary goals of kaizen is eliminating waste, considering both the process and the end
results. In addition, it encourages big picture thinking, with employees considering how their
actions impact the whole. It also fosters a culture of learning and experimentation without
judgment and blame, with all workers understanding that their opinions are important and useful
to the overall system.
Types of Wastes
Overproduction: This is one of the worst wastes. Too much is as bad as not enough
Waiting: Having machines and people and other resources standing idle unutilized
Transportation: Excess movement of people materials and products
Processing: Doing additional process to correct the previous process
Inventory: Includes unfinished products work in process and raw materials. These ties up money
space and labour
Motion: Excess motion takes up excess time. The use of natural limited motion is recommended
Quality defects Tis requires additional resources to redo what not done right the first time. This
results to loss customer satisfaction and loss of business
All Kaizen methods have the following in common
Involvement of all workers who execute the process
Focus on improving the performance of work process
Seeks to make incremental improvement
Improvements are intended to be repeated over a time
Kaizen is constant. Unlike many Western workplace improvement systems, it is not a problem
based approach. Workers come up with new ideas and submit them all the time, and quality
circles meet frequently. Any hiccup on the factory floor results in the meeting of a quality circle
to talk about the issue and discuss changes to implement. As a result, Japanese companies are
continuously becoming more efficient and streamlined, allowing them to effectively compete
with other companies which also integrate the kaizen philosophy into their daily practice.

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Summary
In this lesson we have learnt that
Continous process improvement is critical for TQM to suceed
Kaizen is a japannese philosophy which is concerned with continous improvement

Suggestion for Further Reading


Six sigma

Activity
Continuous process improvement can be regarded as total quality management. Explain
Explain the fundamental principles of Kaizen
Explain the meaning of continuous process improvement
Discuss the wastes that kaizen intends to eliminate

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LECTURE FIVE: LEADERSHIP AND TQM


5.1 Introduction
Welcome to the fifth lecture on leadership and total quality management. This lecture covers
and show you the importance of leadership in ensuring quality .without good leadership
organizations cannot achieve its quality objective .secondly the importance of quality policy and
mission statement are introduced and lastly employee involvements in ensuring that the
organization achieves its quality objective is introduced .
5.2 Learning outcome
After completing the topic, you should be able to
Explain the importance of leadership in relation to total quality management
Discuss the characteristics of quality leaders
Discus the importance of employee involvement

5.3 Lecture Outline


Study unit 5.3.1 Leadership and quality
Study unit 5.3.2 Mission and quality policy
Study unit 5.3.3 Employee involvement
5.3.1 LEADERSRHIP AND QUALITY
Total quality management (TQM) leadership refers to top managers of an organization
responsible for implementing a system to improve customer satisfaction. The total quality
management philosophy starts with company owners and high-ranking managers committed to
getting work done right the first time. It s a process that includes developing a plan to improve
delivery of products or services, and implementing that plan throughout the organization.
Good leadership plays an important role for organizations to achieve quality. A leader
strengthens and inspires followers to accomplish shared goals Leadership is important during the
phase of implementation they must be trained on TQM concept
Managers charged with total quality management leadership put the customer at the centre of a
system so every interaction occurs in a reliable and timely manner. The main concept
communicated throughout the company hinges on meeting customer expectations every time.

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Meeting these goals might give the company an edge over competitors, eliminate the cost of
correcting mistakes, and increase productivity.
To be effective in total quality management leadership, managers typically write a mission
statement outlining the principles, values, and beliefs of the organization. They ensure the
mission statement is shared and understood by every person employed in the firm. Leaders also
develop strategies for implementing plans to improve customer relations and explain these
techniques to lower-level supervisors.
One factor that determines total quality manager leadership effectiveness centers on the ability to
gain acceptance of these principles from all employees. Senior managers who serve as good role
models for subordinates might see more success in motivating others to embrace a TQM system.
They are responsible for ensuring every employee embraces the concept and commits to change.

Stephen R Covey: The 7 Habits of Highly Successful People


1. Be Proactive: Proactive people think beforehand and are ready to face a situation. Reactive
people react as per the situation and react on whims and emotions. A proactive person can
plan beforehand for an eventuality. If you are well prepared then you can face a situation or
solve a problem more efficiently.
2. Begin with the end in Mind: If you don t know where to go then you will reach nowhere
goes an old saying. Start a task with set goals. Goals are important as they tell you where to
go. They help in focusing your approach as well. 3. Put First Things First: Because of
multitude of tasks and assignments one needs to prioritize. This helps in giving more
attention to more important things at hand.
3. Think win-win: Think about mutual benefits rather than your own benefit alone. Everybody
wants to have an upper hand in life and in business dealings. But this is practically not
possible. So best way is to find is the middle of the road.
4. Seek first to understand, then to be understood: First give other people ample time to
express themselves. This will help on many fronts. The other person gets enough opportunity
to say what he wants to say. You get an opportunity to understand other s perspective. You

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get enough time to strategize accordingly.


5. Synergy: The best example of team work can be learnt from a pleasant orchestra or
jugalbandi in Indian classical music. Especially in Indian classical music you will observe
how maestros bury their egos and come out with astounding performances.
6. Sharpen the Saw: Skill building or practice is very important. Nobody is perfect and
perfection is a thing which can never be achieved in one s lifetime. Moreover, it always pays
to practice as much as you can.

Role of TQM Leaders


1. All are responsible for quality improvement especially the senior management & CEO s
2. Senior management must practice Management By Walking Around
3. Ensure that the team s decision is in harmony with the quality statements of the organisation
4. Senior TQM leaders must read TQM literature and attend conferences to be aware of TQM
tools and methods
5. Senior managers must take part in award and recognition ceremonies for celebrating the
quality successes of the organization
6. Coaching others and teaching in TQM seminars
7. Senior managers must liaise with internal, external and suppliers through visits, focus
groups, surveys
8. They must live and communicate TQM.

Characteristics of quality Leaders


1. They give priority attention to internal and external customers and their needs. They
continually evaluate the changing customers requirements
2. They empower rather than control subordinates. They have trust and confidence in the
performance of their subordinates. They provide the resources training and the work
environment to help subordinates do their job
3. They emphasize improvement rather than maintenance leaders use the phrase it isn t
perfect improve it.. They believe that there is always room for improvement even if the
improvement is small

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4. They emphasize prevention on anything that can affect the organization from achieving its
objectives
5. They encourage collaboration rather than competition between functional areas,
departments and work groups
6. They train and coach rather than direct and supervise. Leaders know that it is essential to
develop human resources. They help subordinates learn how to do a better job.
7. They learn from problems. When problems exist its treated as an opportunity to learn.
They ask question such as what caused it and how can we prevent it in future.
8. They continually try to improve communication. They disseminate information about
TQM continually. Communication is the glue that holds TQM together
9. They continually demonstrate their commitment to quality. The let the quality statement be
their decision making guide
10. They choose suppliers on the basis of quality and not price. Leaders know that quality
begins with quality raw materials
11. They establish organizational systems to support quality effort. At the senior management
level the quality council is established and at the first line supervisor level work groups
and project teams are organized to improve the process
12. They encourage and recognize team efforts. They encourage, provide recognition and
reward individual teams

5.3.2 QUALITY POLICY AND MISSION STATAEMENT


What is a quality policy?
The Quality Policy is a guide for everyone in the organization as to how they should provide
products and service to the customers. The common characteristics are Quality is first among
equals. Meet the needs of the internal and external customers. Equal or exceed the competition.
Continually improve the quality. Include business and production practices. Utilize the entire
work force.

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What is a mission statement?


The mission statement answers the following questions: who we are, who are the customers,
what we do, and how we do it.
What is a vision statement?
The vision statement is a declaration of what an organization should look like five to ten years in
a future. Experience is also employed through utilization of the "Do" step of Deming's Plan-DoStudy-Act cycle. By actually implementing the proposed improvement on a test or full scale
basis, the firm gains knowledge that it would not obtain through attempting to logically deduce
the results without actually implementing. This is because the success of the project may be
explained by a new paradigm that would appear illogical under the existing paradigm. The
success of the project and the new underlying paradigm would not be discovered without
actually implementing the project.
Organizations must have a quality policy and mission statement
They determine and influence how work is done, how people behave and are treated
Policy is man-made rule of predetermined course of action established to guide performance
Importance of quality policy and mission statement

Build enthusiasm and loyalty of people

Is a standard of evaluating performance

Support mission and principles of organization

Encourages improvement

Promotes teamwork and leadership

Fosters decision making

Helps in customer satisfaction

Factors to consider in formulating quality policy and mission statement


Should be clear, definite and easy to understand

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Be a result of carefully analysed data

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Focus on quality, continuous improvement and customer satisfaction

Should not be rigid

Should be communicated to all

Quality Council:
In order to build quality in the culture, a quality council is established to provide overall
direction. It is the driver for the TQM engine. In a typical organization the quality council is
composed of the chief executive officer(CEO); the senior managers of the functional areas, such
as design, marketing, finance, production, and quality; and a Coordinator or consultant.
Quality council is established to build quality into culture and provide direction
The duties of the quality council:
a) To develop the vision, mission and quality statement of the organization, with the input from
all the personnel.
b) To develop strategic long-term plan with goals and annual quality improvement program with
objectives.
c) Create a total education and training plan.
d) Determine and continuously monitor the cost of poor quality.
e) Determine the performance measures of the organization and monitor.
f) Continuously determine those projects that improve and affect external and internal customer
satisfaction.
g) Establish multifunctional project and work group teams and monitor their progress.
h) Establish and revise the recognition and reward system to account for the new way of doing
business.
The typical quality council meeting agenda of a well-established TQM organization:
a) Progress reports on teams
b) Customer satisfaction report
c) Progress on meeting goals

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d) New project teams


e) Recognition dinner
f) Benchmarking report

5.3.3 EMPLOYEE INVOLVEMENT


Employee involvement is a vital aspect of total quality management solutions, and also in the
success of any business. The need to both grow and succeed in an increasingly competitive
marketplace has seen the implementation of various quality initiatives in different companies and
organizations.
Problem-solving and process improvements are crucial to the company's quality initiatives, and
demonstrate proactive actions are being taken to prevent problems. Total Quality Management
(TQM) is a continuous process that strives to increase customer satisfaction, lower costs, and
minimize defects and variations in every process of the business. TQM involves a number of
concepts like "Just-In-Time", quality circles, employee involvement, continuous process
improvement, empowerment, and world-class quality. The basic philosophy of TQM is to
involve every employee in the organization along with its suppliers and distributors to improve
product quality and thus enhance customer satisfaction.
One of the important concepts of TQM is employee involvement. This is contrast to
conventional quality assurance management practices, where management takes all decisions
and workers just follow them to accomplish their jobs.
Employee involvement is very important in any TQM initiative, as it is a system wherein
employees are encouraged to use their expertise and knowledge to suggest methods for
improvements in their work areas. These suggestions could relate to improvements in the job, the
product, the work atmosphere or the company as a whole. Many companies have ventured into a
participation-style of management by involving employees in the problem solving and decision
making processes.
The five obstacles that arise when companies try to shift from a traditional management style to a
participative one are listed below:
Resistance to change
Mistrust of the management s motives by the workers
Lack of clear expectations from the workers

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Lack of participative skills among employees


Lack of executive commitment

Benefits Employee Involvement & Empowerment


While both employee involvement and employee empowerment are each distinct practices and
are usually mutually exclusive to one another, the benefits of each can be similar. The main
benefits of employee involvement and empowerment are enhanced morale, more productivity,
healthier co-worker relationships and creative thinking.
1. Improved Morale. Involving employees in decisions and policy changes that directly affect
their jobs while also empowering employees to be more autonomous, greatly improves
company morale at large. When employees are treated as an asset and their input is given
consideration, confidence increases among every team member, and the organization sees
significant gains in different facets such as productivity and loyalty. Improved morale can
also increase employee longevity with the company, as the longer an employee is associated
with the company, the more experienced they become. This makes them mentors to new
employees and therefore indispensable to managerial staff.
2. Increased Productivity. Both employee empowerment in quality management quality
management practices also translate into increased productivity. Employees with an
investment in the best interest of the organization increase their role in the company, and
foster a stronger work ethic. When employees are given independence and expected to be
more self-sufficient, they eventually become more efficient as they learn to navigate their
responsibilities with minimal interference and/or relying less on managerial staff for
direction. This allows managerial staff more time to tend to their own responsibilities other
than giving assignments to subordinates and decreases micromanagement, which minimizes
productivity.
3. Team Cohesion. Employee empowerment fosters better relationships between employees and
with their managers, as employees that are given more independence tend to form better

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working relationships. Each sees the other as mutually benefiting from their working
relationship. In addition, more self-governance in the workplace lessens dependence on
managers and supervisors and redirects that reliance laterally to coworkers.
4. Innovation. Employee empowerment cultivates innovation, as employees that have a stake in
company growth and sustainability will offer more ideas and problem-solving solutions when
obstacles arise. As the employee meets particular challenges or finds improvements in
policies, procedures or products, it will foster growth and more critical and imaginative
thinking. Employees can offer different perspectives thana managers, and be able to offer a
creative solution not otherwise considered by staff
5. Making decisions Employees are better able to make decisions using their expert knowledge
of the process
6. Supporting decisions Employees are more likely to implement and support decisions they
had apart in making
7. Areas of improvement Employees are better able to spot and pinpoint areas of improvement
8. Acceptance of change Employees are able to accept change because they are involved
9. Increased commitment Employees have increased commitment because they are involved

Summary
In this lesson we have learnt that
Quality leaders are important for the sucess of TQM
Quality policy and misision stataments are critical instruments for TQM sucess
Employee involvement enhances total quality management

Suggestion for Further Reading


Importance of reward and recognition

Activity
Explain the important role of quality leaders
Define quality council and the role they play in an organization
Explain the characteristics of quality leaders
Discus why it is important to involve employees in total quality management
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LECTURE SIX: PROPONENTS OF TOTAL QUALITY MANAGEMENT


6.1 Introduction
Welcome to the sixty lecture on proponents of total quality management. This lecture covers
some of the famous proponents of total quality management gurus who have immensely
contributed to the growth of this philosophy apart from these gurus there are many more others
who have contribute to the growth of quality management.
6.2 Learning outcome
After completing the topic, you should be able to
Explain the contribution of quality gurus
Discuss the fourteen principles of Deming route to quality
Highlights the contribution of Koru ishikawa

6.3 Lecture outline


Study unit 6.3.1 Edward Deming s contribution to quality
Study unit 6.3.2 fourteen principles of Deming s route to quality
Study unit 6.3.3 Dr Josephs Juran contribution to quality management
TQM which has been widely used and accepted has not emerged instantly but a continuous effort
by some people. Various people have contributed to the growth of this philosophy.
6.3.1 DR EDWARD DEMING
He is considered as the father of Japanese quality revolution. He approached the problem of
quality management from the statistician perspective. His major contribution started in the 1950s
when he was invited by union of Japanese scientists and engineers (JUSE) to Japan
He proposed new thinking stressing on improving quality through statistical quality control
techniques
Though initially ignored in the United States, the influence of Deming in western thinking grew

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rapidly after 1980s


Cooperation- Dr. Deming based his new business philosophy on an ideal of cooperation. In order
to fulfil its own potential, a company must harness the power of every worker in its employment;
for that reason, the third point bars shoddy workmanship, poor service, and negative attitudes
from the company.

Theory of Profound Knowledge -- In order to promote cooperation, Deming espouses his Theory
of Profound Knowledge. Profound knowledge involves expanded views and an understanding of
the seemingly individual yet truly interdependent elements that compose the larger system, the
company. Deming believed that every worker has nearly unlimited potential if placed in an
environment that adequately supports, educates, and nurtures senses of pride and responsibility;
he stated that the majority--85 per cent of a worker's effectiveness is determined by his
environment and only minimally by his own skill.

A manager seeking to establish such an environment must:


Employ an understanding of psychology--of groups and individuals.
Eliminate tools such as production quotas and sloganeering which only alienate workers from
their supervisors and breed divisive competition between the workers themselves.
Form the company into a large team divided into sub-teams all working on different aspects of
the same goal; barriers between departments often give rise conflicting objectives and create
unnecessary competition.
Spread profit to workers as teams, not individuals.
Eliminate fear, envy, anger, and revenge from the workplace.
Employ sensible methods such as rigorous on-the-job training programs.
In the resulting company, workers better understand their jobs--the specific tasks and techniques
as well as their higher value; thus stimulated and empowered, they perform better. The expense
pays for itself
Deming s definition of quality is in terms of quality of design. Quality of conformance and
quality of service function
The main focus of Deming s philosophy is on planned reduction on variations

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Deming is popularly known for his fourteen principles of quality. His 14 principles
emphasized on the following
1. Top management strong commitment to quality
2. Process design and control through statistical tools
3. Continuous search for and correction of quality problems
4. Pursuing a policy that emphasizes quality rather than cost
5. Removing of barriers to employee participation and teamwork
6. Effective communication between employees and supervisors
7. Elimination of numerical goals and quotas for employees
8. Companywide training and education quality
9. Education and training managers on the use of statistical techniques
10. Importance of quality design and information syste

6.3.2. DEMINGS FOURTEEN PRINCIPLES


1. Constancy of purpose: Create constancy of purpose for continual improvement of products
and service to society, allocating resources to provide for long range needs rather than only
short term profitability, with a plan to become competitive, to stay in business, and to
provide jobs.
2. The new philosophy: Adopt the new philosophy. We are in a new economic age, created in
Japan. We can no longer live with commonly accepted levels of delays, mistakes, defective
materials and defective workmanship. Transformation of Western management style is
necessary to halt the continued decline of business and industry.
3. Cease dependence on mass inspection: Eliminate the need for mass inspection as the way of
life to achieve quality by building quality into the product in the first place. Require
statistical evidence of built in quality in both manufacturing and purchasing functions.
4. End lowest tender contracts: End the practice of awarding business solely on the basis of
price tag. Instead require meaningful measures of quality along with price. Reduce the

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number of suppliers for the same item by eliminating those that do not qualify with
statistical and other evidence of quality. The aim is to minimize total cost, not merely initial
cost, by minimizing variation. This may be achieved by moving toward a single supplier for
any one item, on a long term relationship of loyalty and trust. Purchasing managers have a
new job, and must learn it.
5. Improve every process: Improve constantly and forever every process for planning,
production, and service. Search continually for problems in order to improve every activity
in the company, to improve quality and productivity, and thus to constantly decrease costs.
Institute innovation and constant improvement of product, service, and process. It is
management's job to work continually on the system (design, incoming materials,
maintenance, improvement of machines, supervision, training, retraining).
6. Institute training on the job: Institute modern methods of training on the job for all,
including management, to make better use of every employee. New skills are required to
keep up with changes in materials, methods, product and service design, machinery,
techniques, and service.
7. Institute leadership: Adopt and institute leadership aimed at helping people do a better job.
The responsibility of managers and supervisors must be changed from sheer numbers to
quality. Improvement of quality will automatically improve productivity. Management
must ensure that immediate action is taken on reports of inherited defects, maintenance
requirements, poor tools, fuzzy operational definitions, and all conditions detrimental to
quality.
8. Drive out fear: Encourage effective two way communication and other means to drive out
fear throughout the organization so that everybody may work effectively and more
productively for the company.
9. Break down barriers: Break down barriers between departments and staff areas. People in
different areas, such as Leasing, Maintenance, Administration, must work in teams to tackle
problems that may be encountered with products or service.
10. Eliminate exhortations: Eliminate the use of slogans, posters and exhortations for the work
force, demanding Zero Defects and new levels of productivity, without providing methods.
Such exhortations only create adversarial relationships; the bulk of the causes of low

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quality and low productivity belong to the system, and thus lie beyond the power of the
work force.
11. Eliminate arbitrary numerical targets: Eliminate work standards that prescribe quotas for
the work force and numerical goals for people in management. Substitute aids and helpful
leadership in order to achieve continual improvement of quality and productivity.
12. Permit pride of workmanship: Remove the barriers that rob hourly workers, and people in
management, of their right to pride of workmanship. This implies, among other things,
abolition of the annual merit rating (appraisal of performance) and of Management by
Objective. Again, the responsibility of managers, supervisors, foremen must be changed
from sheer numbers to quality.
13. Encourage education: Institute a vigorous program of education, and encourage selfimprovement for everyone. What an organization needs is not just good people; it needs
people that are improving with education. Advances in competitive position will have their
roots in knowledge.
14. Top management commitment and action: Clearly define top management's permanent
commitment to ever improving quality and productivity, and their obligation to implement
all of these principles. Indeed, it is not enough that top management commit themselves for
life to quality and productivity. They must know what it is that they are committed to-that
is, what they must do. Create a structure in top management that will push every day on the
preceding 13 Points, and take action in order to accomplish the transformation. Support is
not enough: action is required

6.3.3 DR JOSEPH JURAN CONTRIBUTION


Joseph Jjuran pursued a number of careers in management as an engineer, industrial executive,
government administrator and management consultant
Some of his books include quality control handbook, quality planning and analysis, managerial
breakthrough and Jurans leadership for quality
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Jurans definition of quality is fitness for use. The fitness can be achieved through quality of
design, quality of conformance, availability and field service
Juran highlighted the managerial responsibility for quality and emphasized that quality is
achieved through people rather than techniques
Juran advocated analysis and synthesis of cost of quality to identify areas of improvement

His approach emphasized on the following


Quality planning
Establishment of formal quality policy
Quality through product design
Quality audit
System approach to managing quality through the organization
Dedication to quality at each step in the product development cycle
Quality cost
Quality responsibility on middle management and quality consultant
Juran proposed the following ten steps to quality management
1. Building awareness of the need and opportunity for improvement
2. Set goals for improvement
3. Organize to reach the goal
4. Provide training
5. Carry out projects to solve problems
6. Report progress
7. Give recognition
8. Communicate results
9. Keep the score
10. Maintain momentum by making annual improvement part of the regular system and
process of the company

Jurans Strategies for the 90s


Upper managers on charge
Training for all managers

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CAM 201: TOTAL QUALITY MANAGEMENT

Quality improvement at a revolution pace


Participative quality planning
Structured quality planning
Quality goals to be included in strategic business plan
The role of upper managers include
Accept training on how to manage for quality
Create and lead a quality council that guides and coordinates the process through which company
meets its quality goals
Personally determine which quality goals should enter business plan
Approve methods of measurement of quality goals
Personally review process against the goals
Participate in recognition ceremony
Approve revision on the reward system
Kaoru Ishikawa
Kaoru Ishikawa is best known for the development of quality tools called cause-and-effect
diagrams, also called fishbone or Ishikawa diagrams. These diagrams are used for quality
problem solving, . He was the first quality guru to emphasize the importance of the internal
customer, the next person in the production process. He was also one of the first to stress the
importance of total company quality control, rather than just focusing on products and services.
Dr. Ishikawa believed that everyone in the company needed to be united with a shared vision and
a common goal. He stressed that quality initiatives should be pursued at every level of the
organization and that all employees should be involved. Dr. Ishikawa was a proponent of
implementation of quality circles, which are small teams of employees that volunteer to solve
quality problems.

Cause-and-Effect Diagrams
Cause-and-effect diagrams are charts that identify potential causes for particular quality
problems. They are often called fishbone diagrams because they look like the bones of a fish. A

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CAM 201: TOTAL QUALITY MANAGEMENT

general cause-and-effect diagram is


The head of the fish is the quality problem, such as damaged zippers on a garment or broken
valves on a tire. The diagram is drawn so that the spine of the fish connects the head to the
possible cause of the problem. These causes could be related to the machines, workers,
measurement, suppliers, materials, and many other aspects of the production process. Each of
these possible causes can then have smaller bones that address specific issues that relate to
each cause. For example, a problem with machines could be due to a need for adjustment, old
equipment, or tooling problems. Similarly, a problem with workers could be related to lack of
training, poor supervision, or fatigue.
Cause-and-effect diagrams are problem-solving tools commonly used by quality control teams.
Specific causes of problems can be explored through brainstorming. The development of a
cause-and-effect diagram requires the team to think through all the possible causes of poor
quality.
Figure 3 Cause and effect Diagram
Suppliers

workers

Machines
Poor quality

Environment

Materials

processes

Summary
In this lesson we have learnt that
TQM has not emerged intantly but numerous effort and reserach from various scholars.
Cause and effect as a quality tool can be used in enhancing total quality management

Suggestion for Further Reading


Other proponents of Total quality mnagement and their contribution

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Activity
Clearly demonstrate how Edward Deming and Joseph Juran have contributed in quality
management
Explain the cause and effect diagram
Explain the fourteen principles of Deming route to quality
Discuss Jurans proposal for quality management

References
Samwel. K. TQM an integrated approach, New Delhi Crest Publishing House
Dale Besterfield, Carol Bersterfield, Glnh Besterfield ,Total Quality Management, New
Delhi New Age International Pvt Ltd, 2004
Aqualino chase Jacobs Operation Management for Competitive Advantage New Delhi Tata
McGraw Hill, 2004
Waller Derrick Operation management, chain supply approach, Italy international Thomson
1999
Smith Steve The quality revolution Jaico publishing house 2002
Greig, York, Adams, Ranney Beyond Total Quality Management, New York Mcgraw
hill,1994
Anand k. kailash, High quality at economic cost, New Delhi, Sage Publications Pvt Ltd, 2003

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