TOTALQM Reviewer
Quality – consumer’s perspective: meeting or
exceeding customer expectations
Total Quality
 Approach to doing business
 Attempts to maximize organization’s
competitiveness through the continual
improvement of the quality of its products,
services, people, processes, and
environments
TQM Defined
1. Total – everyone participates and that is
integrated into all business functions
2. Quality – meeting or exceeding customer
expectations
3. Management – improving or maintaining
business systems
Concept Evolution
1. Control
 implies that data are gathered to demonstrate
conformance and identify the need for
improvement
 regulatory process
 implies an action (or inaction), to change a
condition or ensure that it remains
unchanged
2. Quality Control
 Through measurement and feedback
 The word “quality” does not necessarily
mean “best”
3. Quality Assurance (or Quality Assurance
Systems)
 Added human factor in quality
 Preventive in nature
 Eliminated the party inspection
Total Quality – a comprehensive, organization-
wide effort to improve quality of products and
services
Total Quality Control
 a plan and strategy to extend quality
control efforts
 “Total Quality Management”
Total Quality Management
 Quality must be disseminated throughout an
organization and not just left to one
 Quality emphasis that encompasses the
entire organization, from supplier to
customer
 Integral part of an organization’s strategy
and is aimed at continually improving
product and service quality so as to achieve
high level of customer satisfaction and
build strong customer loyalty
 Founded in the service sector and not in
manufacturing
World’s Quest for Quality
 Primitive Ages
 Medieval Ages
 Age of Civilization
 The Industrial/ Economic Revolution
 20th Century
 Present
Historical Perspective
 Turn of the 20th Century – scientific
management
 Between 1924 to 1932 – Hawthorne Effect
 1940s
o Japanese Union of Scientists and
Engineers (JUSE) was established in
1946
o Made in Japan
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o Birth of TQM in Japan Continuous Improvement
 1950s
 Kaizen – gradual and orderly continuous
o Made in USA
improvement
 Focus on small, gradual, and frequent
improvements over the long term with
minimum financial investment, and
participation by everyone in the organization
 Proponents: Kaoru Ishikawa and Taiichi
Ohno
Kaizen Blitz
 Intense and rapid movement process in
 1960s which a team or department throws all its
o Beginning of quality battle and resources into an improvement project over
economic war a short time period, as opposed to
o Increasing productivity and traditional kaizen applications, which are
economic problems created a performed on a part-time basis
persisted oversupply of goods  Blitz teams are generally comprised of
 1970s employees from all areas involved in the
o Low productivity growth us US process of who understand it and can
Manufacturing implement changes on the spot
Breakthrough Improvement
 Discontinuous change, as opposed to the
gradual, continuous improvement
philosophy of kaizen
 Breakthrough improvements result from
innovative and creative thinking often these
are motivated by stretch goals, or
breakthrough objectives
Benchmarking
 The search of industry best practices that
 1980 lead to superior performance
o Quality revolution began again o Competitive benchmarking
Quality Management Principles o Process benchmarking
 Best Practices – approaches that produce
1. Customer focus exceptional results, are usually innovative
2. Leadership in terms of the use of technology or human
3. Involvement of people resources, and are recognized by customers
4. Process approach or industry experts
5. Systems approach to management
6. Continual improvement
7. Factual approach to decision making
8. Mutually beneficial supplier relationships
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Dr. William Edwards Deming (1900-1993)
Deming Cycle
Quality Philosophies
TQM Gurus:
3 most popular American TQM Gurus
1. Philip B. Crosby
2. Joseph M. Juran
3. W. Edwards Deming
3 most popular Japanese figures
1. Kaoru Ishikawa
2. Genichi Taguchi
3. Shigeo Shingo
 Father of TQM
 Doctorate in Mathematical Physics
 Trained as statistician and worked for
Western Electric in 1920s-1930s
 Shared expertise in Statistical Quality
Control (SQC) to help US war effort during
World War II
 Sent to Japan to help nation recover
 Deming Prize in 1951 by the JUSE
 Received Royal Order of the Sacred
Treasure from the Emperor of Japan
 A product or service possesses quality if it
helps somebody and enjoys a good and
sustainable market
 “A System of Profound Knowledge”
o Appreciation for a System – set of
functions or activities within an
organization that work together to
achieve organizational goals
o Theory of Variation – some
understanding of statistical theory,
particularly variation
o Theory of Knowledge – profound
knowledge
o Knowledge of Psychology
 Higher quality leads to higher productivity:
The Deming’s Chain
 Best known for his Fourteen Points, the
Deming Cycle, and the Seven Deadly
Diseases
 Methodology for improvement based on the
premise that improvement comes from the
application of knowledge
 Originally called the Shewhart Cycle
 4-step never ending process
 PDCA – Plan, Do, Check, Act or PDSA –
Plan, Do, Study, Act
o Plan – identify the improvement and
make a plan
o Do – test the plan
o Check – is the plan working?
o Act – implement the plan
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Philip B. Crosby (1926-2001)
Joseph M. Juran (1904-2008)
 Joined the Western Electric in the 1920s
 Traveled to Japan in the 1950s to conduct
executive seminars
 Wrote the Quality Control Handbook in
1951
 Quality – Fitness for use
 Cost of Quality Concept
o Failure Cost
o Appraisal Cost
o Prevention Cost
 Quality Trilogy
o Quality Planning – process for
preparing to meet quality goals
o Quality Control – process for
meeting quality goals during
operations
o Quality Improvement – process for
breaking through to unprecedented
levels of performance
 Pursuit of quality in two levels
o Firms: achieve high product quality
o Individual Departments: achieve
high production quality
 First book: Quality is Free
 Philosophy of Zero Defects
 “Doing it right for the first time” (DIRFT)
 The Crosby Vaccine – medicine for
management to prevent poor quality
o Integrity
o Systems
o Communication
o Operations
o Policies
 Drafted his own 14 steps to quality
improvement
 4 absolutes of Quality Management
1. Definition of quality is conformance to
requirements (not elegance)
2. System of quality is prevention (not
appraisal)
3. The only performance standard is Zero
Defects (not close enough)
4. Measurement of quality is the price of
non-conformance (not indexes)
 Other philosophies
o There is no such thing as a quality
problem
o There is no such thing as the
economics of quality: it is always
cheaper to do the job right the first
time
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Ichiro Ishikawa
Genichi Taguchi
Taguchi Approach, System or Method
Which is the best philosophy?
1. Crosby
 Prevention and the only standard of
performance is zero defects
 Places management as step no. 1
Shigeo Shingo (1909-1990)
2. Juran
 Deming’s contemporary
 Stresses that management should provide
leadership toward quality
3. Deming
 Most critical to management. Management
practices are responsible for 80% to 90% of
all quality problems
Walter A. Shewhart (1891-1967)
The Ishikawa’s
Kaoru Ishikawa (1915-1989)
 Theory of quality management
 Edited the JUSE handbook
 Famous for his cause-and-effect diagram
 Influenced participative approaches
involving all workers
 Use of simple visual tools and statistical
techniques
 President of the JUSE
 Leading Japan out of its post-war industrial
problems
 4-time recipient of Deming Award
 Methodology which emphasizes designing
the quality into products and processes
 Contributions include
o QFD
o FMEA (Failure Mode and Effect
Analysis)
o Taguchi Methods
o Taguchi loss function
o Design of Experiments
 Need for off-line quality control
 Quality is a function of prevention, shifting
away from inspection
 Heavily based on statistical methods. To
optimize product design and manufacturing
processes, engineering and statistical
methods were combined
 Developed his concepts of “Mistake-
proofing” or “Poka Yoke” – any
mechanism that helps an equipment operator
avoid mistakes
 Shingo prize is awarded for excellence in
manufacturing
 Introduce “Statistical Quality Control” in
the 1930s
 Development of control charts
 Engineer at Western Electric and at Bell
Telephone Laboratories
 Economic Control of Quality of
Manufactured Product – complete and
thorough exposition of basic principles of
quality control
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Armand V. Feigenbaum (1922-2014) o Introduction of JIT and Kanban in
Japan
 First to use the word “total” – Total Quality
o Originator of the 7 deadly wastes
Control
(Muda)
 Total Quality Control is an effective system
for integrating the quality development, Team
quality maintenance, and quality
 a small number of people with
improvement efforts of the various groups
complementary skills who are committed to
in an organization so as to enable
a common purpose, a set of performance
production and service at the most
goals, and an approach for which they hold
economical levels which allow full
themselves mutually accountable
customer satisfaction
 Group of people with common, collective
 “Hidden Plan” – in every factory a certain
goal
proportion of its capacity is wasted through
 Two heads are better than one
not getting it right first time
 A group of people becomes a team when the
 Three Step to Quality
following conditions exist
o Quality Leadership – strong focus
o Agreement as to the mission
on planning
o Members adhere to ground rules
o Modern Quality Technology –
o A fair distribution of responsibility
involving the entire work force
and authority
o Organizational Commitment –
o People adapt to change
continuous training and motivation
Other Experts on Quality Management
 Howard S. Gitlow – clearly defines
Deming’s 14 points in this “The Deming
Guide to Quality and Competitive Position”
(1987)
 Peter Scholtes – widely read follower of
Deming Famous for his “The Team
Handbook”
 George Edwards – coined the term “Quality
Assurance”
 William E. Conway – focuses on the
management system as means to achieve
TQM  A central facet of total quality
 Noriaki Kano  Everywhere in TQ organizations: At the top
o An educator, lecturer, writer and and bottom and in every function and
consultant in the field of quality department in between
management  Provides “pride and joy in work
o Developer of a customer satisfaction  Not bossed, coached but
model as the “Kano Model” o Promote mutual respect among team
 Taiichi Ohno members and foster cultural diversity
o Assembly manager for Toyota and
developed many improvements that Stages of Group Growth
eventually became the Toyota 1. Forming – members get to know each other
Production System
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2. Storming – clarifying roles, tasks, and team
processes
3. Norming – members begin to become more
accepting of the purpose of the team and
exhibit reconciliation, cohesion, and
harmony
4. Performing – members act as a team to
focus on problem solving and continuous
improvement
Types of Teams
1. Functional Team
 Composed of voluntary from similar
“function” or work areas
 Focus on process improvements
 Often best qualified to recognize and fix
processing problems
 Typically make up 80 percent of total
number of teams in an org
 Identify, select activities, develop, and
recommend effective solutions to solve
specific problems and processes
 Usually remain in existence after reaching
desired goals and solving a problem
2. Cross-functional teams
 Comprised of members from various
departments or functional areas in the
organization
 Sometimes called “task” teams, force, or
groups – created to accomplish a relatively
narrow range of purposes within a specified
time frame
 Comprise about 20 percent of the teams in
the organization
 Members are from production, purchasing,
contracts, engineering, or other areas
 Are Ad-hoc and should disband after the
problem is solved
 Ex. Project team – for a specified functional
area or short-term task, the do not function
in isolation
3. Self-managed and Self-directed teams
 Used to describe the “empowered” groups of
people of who practice participative
management
 Does not mean the team is “leaderless” or
structureless, or that the team’s authority has
no boundaries
 Implies that employees on team are granted
authority and freedom to make decisions
within their groups
 May make decisions about process
improvement, training needs, peer
evaluation, setting team goals, and other
matters
Reason for Team Failures
1. No team development or model
2. No or poor team training
3. Wrong team focus
4. Unmet expectations
5. Lack of management commitment to team
concepts
Teamwork
 Often meant compliance
 Promote improved communications
throughout the organization
 Often helps, promote, train, and develop
individuals for other responsibilities within
the organization
 Widespread and a key contributor to TQ
 Can be viewed in three ways
o Vertical: between top management
and lower-level employees
o Horizontal: within work groups and
across functional lines (cross-
functional teams)
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o Inter-organizational: partnerships
with suppliers and customers
Quality Circle
 Voluntary groups of employees who work
on similar tasks or share an area of
responsibility
 Typically meet on regular weekly basis to
identify processing problems and develop
solutions
 They operate on the principle that employee
participation in decision-making and
problem solving improves the quality of
work
Summary of History and Practices
 Quality Circles were first seen the United
States in the 1950s
 Developed by Dr. Kaoru Ishikawa in Japan
in the 1960s
 Re-exported to the US in the early 1970s
 1980 brought Total Quality Management
and a reduction in the use of Quality circles
How can they be used in an organization?
 Increase productivity
 Improve quality
 Boost employee morale
How do quality circles work?
 Volunteers
 Set rules and priorities
 Decisions made by consensus
 Use of organized approaches to problem-
solving
 All members of a circle need to receive
training
Problems faced by quality circles
 Inadequate training
 Unsure of purpose
 Not truly voluntary
 Lack of management interest
 Quality circles are not really empowered to
make decisions
Hoshin Planning
 Developed in Japan and improved in the US
 Enables organization to achieve strategic
breakthroughs
 Component of the TWM system that
facilitates strategic thinking and integrates
the development of an implementation plan
targeted to achieve a key organizational
breakthrough
 Planning an implementation process that is
continuously improved throughout the year
 Focus on key systems that need to be
improved to achieve strategic objectives
 Participation and coordination by all levels
and departments
 Utilize the basic 7 and new 7 tools
 Planning and execution based upon facts
 Goals and action plans that cascade through
the organization based upon the true
capability of the organization
Quality Cost
 Cost that the company would not have
incurred if the quality of the product or
service were perfect
 Associated with non-achievement of
product/service quality; cost of poor
products or services
 Price of nonconformance (Philip Crosby) or
the cost of poor quality (Joseph Juran)
 Can mean two things
o Cost of attaining quality
o Cost of poor quality
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Cost of Quality Model
 Cost of avoiding poor quality, or costs
incurred as a result of poor quality
 Provides a basis for identifying
improvement opportunities and success of
improvement programs
 Translates quality problems into the
“language” of upper management – the
language of money
Cost Issues in the Company
 Quality improvement projects tend to focus
on zero defects or defect reduction to the
six-sigma level
 Not incurred or allocated, but rather caused
 Does not solve quality problems, nor does it
suggest specific solutions
 Problems are solved by tracing the cause of
a quality deficiency
 Companies under TQM do not focus on
quality cost minimization
Quality Cost Classification
 Prevention (5-10%) – investments made to
keep non-conforming products from
occurring and reaching the customer
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 Appraisal (15-20%) – associated with
efforts to ensure conformance to
requirements, generally through
measurement and analysis of data to defect
non-conformances
 Failure Costs (50-80%)
o Internal failure – costs of
unsatisfactory quality found before
the delivery of a product to the
customer
o External failure – costs incurred
after poor-quality products reach
the customer
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Inspection
Taguchi Method: 3 Methods to Improve Product
and Process Quality  Involves examining items to see if an item
is good or defective
1. Quality Robustness – which a product or  Detect a defective product
process is least influenced by the variation o Does not correct deficiencies in
of individual factors process or product
 To become robust is to become less sensitive o It is expensive
to variants  Issues
2. Quality Loss Function (QLF) – o When to inspect
mathematical function that identifies all o Where in process to inspect
costs connected with poor quality and  Many problems
shows how these costs increase as product o Worker fatigue
quality moves from what the customer o Measurement error
wants o Process variability
3. Target-oriented Quality – a philosophy of  Cannot inspect quality into a product
continuous improvement to bring the  Robust design, empowered employees, and
product exactly on target sound processes are better solutions
Quality Loss Function
 Economical and societal penalties due to a
purchase of a nonconforming product
 Shows that costs increase as the product
moves away from what the consumer wants
 Costs include customer dissatisfaction,
warranty and service, internal scrap and
repair, and costs to society

Source Inspection
 Source control
 Next step in the process is your customer
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 Ensure perfect product to your customer
Automated Inspection
 Modern technologies allow virtually 100%
inspection at minimal costs
 Not suitable for all situations
Kinds of Sampling
Product Inspection: Sampling
Goal: To accept good lots and reject bad lots a
high percentage of the time
1. Periodic Sampling
 Uses items selected periodically by a
constant unit of time
 A proportion of the population may be
denied representation in the sample
 Unknown degree of bias
2. Stratified Sampling
 Divides the population into groups or data
 A sample is taken at random from each
group
3. Consecutive Sampling
 A sample is taken in the order in which
items were produced
 Any changes in processing are quickly
detected
4. Simple Random Sampling
 A method is selected in which each item
from the process has an equal chance of
being selected in the population
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5. Skip lot or Acceptance Sampling
 Used if there has been an established or past
record for quality
 Only fraction of “lots” are chosen to
randomly tested
Acceptance Sampling
 Randomly inspecting a certain number of
items from a lot or batch in order to decide
whether to accept or reject the entire batch
 Performed either before or after the process
rather than during
o Sampling before is done to supplier
material
o Sampling after involves sampling
finished items before shipment or
finished components prior to
assembly
 Purpose is to sentence lots (accept or reject)
rather than to estimate the quality of a lot
 A form of inspection that is used to
determine whether or not goods are
coherent with a set standard of quality
 Most effective use of acceptance sampling is
as an auditing tool to help ensure that the
Dimensions of Quality in Product and Service
output of a process meets requirements
 Acceptance sampling plans do not Quality
improve quality
 Customer
 The nature of sampling is such that
o Fitness for use
acceptance sampling will accept some lots
o Getting what you expect
and reject others even though they are of the
o Perceived performance
same quality
o “lies in the eyes of the beholder”
 Manufacturing/ Service
o Conformance to requirements
o Meet specification
o Product is well-made
o Service performed according to
operational guidelines
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o Desired quality – represent the
aspects of the product that define it
for customer
o Tend to be easy to measure, and
therefore become benchmarks for
competitive analysis
Delighter
 Product attributes or features that are
pleasant surprises to customers when they
first encounter them
o Not present, customer will not be
dissatisfied
Customer Perceived Value o Exciting quality or unexpected
quality
 Measures how customers assess benefits –
o Latent or hidden needs
such as product performance, ease of use, or
time savings – against costs, such as
purchase price, installation cost or time, and
so on, in making purchase decisions
3 Classes of Customer Needs
1. Dissatisfier – needs that are expected in a
product or service; must-be, basic, expected
characteristics
2. Satisfiers – needs that customers say they
want; one dimensional or straight-line
characteristics
3. Delighters – new or innovative features that
customers do not expect; attractive or
exciting characteristics
Dissatisfier
 Customer takes for granted when it is
presented, but that causes dissatisfaction
when it is missing
o Don’t normally ask about because
they expect it to be taken care of
o Absence of expected quality
o Customer complaints – primary
source of information on existing
dissatisfier
Satisfier
 Something that customers want in their
products and usually ask for
o More satisfier, happier
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Quality Perspectives
1. Customer – meeting or exceeding customer
expectations
2. Manufacturing – conformance to
specifications
3. Transcendent – excellence
4. Product – quantities of product attributes
5. User – fitness for intended use
6. Value – quality vs. price
Manufacturing-based
 Concerned with engineering and
manufacturing practices
 Universal definition of “conformance to
requirements”
 Has the serious weakness
 Consumer’s perception of quality is equated
with conformance and hence is internally
focused
Transcendental
 Quality is difficult to define or to
operationalize
 Becomes elusive when using the approach
as basis for competitive advantage
 The functions of design, production and
service may find it difficult to use the
definition as a basis for quality management
 I can’t define it, but I know it when I see it
Product-Based
 Quality is viewed as a quantifiable or
measurable characteristic or attribute
 Determined objectively
 If quality is based on individual taste,
benchmark may be misleading
Value-Based
 Quality at an acceptable price
8 Dimensions of Quality
1. Performance – product’s primary operating
characteristics
 Fundamental purpose for which the product
is purchased
2. Features – bells and whistles of a product
 Product capabilities not considered to be
part of normal performance expectations
3. Reliability – surviving over a specified
period of time under stated conditions of use
 Performance that can be depended upon
with a high level of assurance
4. Conformance – degree to which physical
and performance characteristics of a
product march pre-established standards
 Alludes to the degree to which the measured
production qualities correspond to the design
quality standards that have been specified
5. Durability – amount of use one gets from a
product before deterioration or until
replacement is preferable
 How well the product endures the face of
use and stress
6. Serviceability – ability to repair product
quickly and easily
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7. Aesthetics – how a product looks, feels, 5. Access – approachability and ease of
sounds, tastes, or smells contact
8. Perceived quality – subjective assessment 6. Communication – informing in a language
resulting from image, advertising, or brand which customers understand and listening
names to customers
9. Robustness – operate or utilize in adverse 7. Knowing the customer – understand the
conditions customer’s individual needs
 Less sensitive to variations 8. Tangibles – physical evidence of service
10. Safety – freedom from injury or harm 9. Reliability – promised service in a
11. Value/ affordability – intrinsic value, value dependable and accurate manner
for money 10. Responsiveness – readiness and willingness
of employees to help; prompt and timely
Service Quality
 Service – any primary or complementary
activity that does not directly produce a
physical product that the non-goods part of
the transaction between buyer (customer)
and seller (provider)
 Tangible component of services is important
 Service process is important
 Judged against the customer’s expectations
 Exceptions will occur
Moments of Truth
 Where customer satisfaction or
dissatisfaction take place

Dimensions of Service Quality

1. Competence – required skills and
knowledge to perform
2. Courtesy – consideration for the customer
3. Credibility – factors of trustworthiness,
belief and honesty
4. Security – free from danger, risk or doubt