Chapter 1

Introduction to Total Quality

Management
 Quality – What Is It?
• “Quality is “fitness for use”- A
definition of quality that evaluates how
well the product performs for its
intended use (Joseph Juran)
• Quality is “conformance to
requirements”-. How well a product or
service meets the targets and
tolerances determined by its designers
(Philip B. Crosby)
• “Value for price paid”-Quality defined
in terms of product or service usefulness
for the price paid.
• It is a “Psychological criteria”-A
way of defining quality that focuses
on judgmental evaluations of what
constitutes product or service
excellence


• Quality of a product or services is its

ability to satisfy the
needs(stated/implied) and
expectations of the customer and
to exceed it
 Dimensions of Quality
(Manufacturing)
• Performance - characteristics of the product or
service
• Aesthetics - appearance, feel, smell, taste
• Special features - extra characteristics
• Conformance - customer’s expectations
• Safety - risk of injury or harm
• Reliability - consistency of performance
• Durability - useful life of the product or service
• Perception - reputation
• Service after the sale - handling of complaints,
customer satisfaction
 Dimensions of
Quality( Service)
• Reliability -ability to perform service dependably
and accurately
• Tangibles-physical facilities, equipment, staff
appearance, etc.
• Empathy -the extent to which caring
individualized service is given
• Responsiveness -willingness to help and respond
to customer need
• Assurance -ability of staff to inspire confidence
and trust
• Consistency
• Timeliness/promptness
 COST OF QUALITY
• Appraisal costs-Costs incurred in
the process of uncovering defects.
• Prevention costs-Costs incurred in
the process of preventing poor
quality from occurring.
• Internal failure costs-Costs
associated with discovering poor
product quality before the product
reaches the customer
• External failure costs-Costs
 Benefits of Implementing
Quality
• Brand value
• Decreased time to market
• Higher customer confidence
• High employee morale
• More time for innovation and creativity
• Increased market share
• Lower costs
• Quality Differentiates
• Increased customer satisfaction
• Higher profits
 E v o lu tio n o f Q u a lity M a n a g e m e n t

In sp e ctio n so rtin g , g ra d in g , S a m p lin g , co rre ctive

a ctio n s, id e n tify so u rce s o f n o n -
co n fo rm a n ce
D e ve lo p q u a lity m a n u a l, p ro ce ss
Q u a lit p e rfo rm a n ce d a ta , se lf-in sp e ctio n ,
y p ro d u ct te stin g , b a sic q u a lity p la n n in g ,
C o n tro u se o f b a sic sta tistics.
l Q u a lity syste m s d e ve lo p m e n t, a d va n ce d
Q u a lity
q u a lity p la n n in g , co m p re h e n sive q u a lity
A ssu ra n c m a n u a ls, u se o f q u a lity co sts, S u p p lie r
e co n tro l

TQ M Po licy d e p lo ym e n t, in vo lve su p p lie r &

cu sto m e rs, in vo lve a llo p e ra tio n s, p ro ce ss
m a n a g e m e n t, p e rfo rm a n ce m e a su re m e n t,
te a m w o rk , e m p lo ye e in vo lve m e n t.
 TQM Defined
• TQM is a management philosophy
that seeks to integrate all
organizational functions
(marketing, finance, design,
engineering, and production,
customer service, purchasing,
management, packing, storing,
shipping) to focus on meeting
customer needs and organizational
objectives.
 FOUR PILLARS OF TQM

T O TA L Q U A LIT Y M A N A G E M E N T

C O N T IN O U S C U STO M ER E M P LO Y E E TEA M
IM PR O V E M E N T FO C U S E M PO W E R M E N T A PPR A O C H
 B A S IC P R IN C IP L E S O F T Q M

p p ro a ch M a n a g e m e n t Le d

S co p e C o m p a n y W id e

S ca le E ve ryo n e is re sp o n sib le fo r Q u a l

ilo so p h y Pre ve n tio n n o t D e te ctio n

ta n d a rd R ig h t First Tim e

C o n tro l C o st o f Q u a lity

hem e O n g o in g Im p ro ve m e n t
 Quality Guru’s
• W. Edwards Deming - 14 point
prescription for quality
• Joseph M. Juran - stressed management
methods
• Armand Feigenbaum - quality as a
“total field” - customer
• Phillip Crosby - quality is free, zero
defects
• Kaoru Ishikawa - quality circles, problem
solving methodology
• Genichi Taguchi - cost of poor quality,
robust product design
Contributions of W. Edwards Deming to
TQM
• Referred to as the “father of
quality control.”


• The Japanese regarded him so

highly that in 1951 they
established the Deming Prize, an
annual award given to firms that
demonstrate outstanding quality
 D e m in g ’ s C h a in R e a ctio n

Im p ro ve
Pro vid e jo b s a nQ du a lity C o st d e cre a se s
m o re jo b s b e ca u se o f le ss
re w o rk , fe w e r
m ista ke s, fe w e r
d e la ys, b e tte r u se o f
S ta y in b u sin e ss
m a ch in e tim e a n d
m a te ria ls

Pro d u ctivity
im p ro ve s
C a p tu re th e m a rke t w ith
b e tte r q u a lity a n d lo w e r
p rice
 The Deming Cycle or PDCA
Cycle ( process improvement )
PLAN
Plan a change to the process.
Predict the effect this change
will have and plan how the effects
ACT will be measured DO
Adopt the change as a Implement the change
permanent on a small scale and
modification to the measure the effects
process, or abandon
it.
CHECK

Study the results to

learn what effect the
change had, if any.
 Deming’s 14 Points

1.Create constancy of 8.Eliminate fear among
 purpose employees

2.Adopt philosophy of 9 Eliminate barriers

prevention between
departments
3.Cease mass inspection

10 Eliminate slogans

4 .Select a few suppliers

11 Remove numerical

based on quality

5 .Constantly improve
quotas
12 Enhance worker pride
system
13 Institute vigorous
and workers

6 . Institute worker training

training &
education programs
7 . Instill leadership among
14 Implement these 13
 supervisors points


Contributions of Joseph
M. Juran
• Known for his book “Quality Control
Handbook”


• Juran is credited with defining quality

as fitness for use
• 2 types of costs:
• Unavoidable Costs: preventing
defects (inspection, sampling,
sorting, QC)
• Avoidable Costs: defects and product
failures (scrapped materials, labour
for re-work, complaint processing,
losses from unhappy customers
 Jo se p h M . Ju ra n a n d th e C o st O f Q u a lity

C o st
s To ta l U n a vo id a b
C o st le co sts
s

A vo id a b le
co sts

100% Po in t o f
d e fe ctive “ Enough
q u a lity ”
 JURAN' sTrilogy
• Quality Planning: from customer
needs to product/service to meet
needs.
• Quality Improvement: developing
and improving capable processes.
• Quality Control: making the process
work in normal operating
conditions with minimal
interruptions
•
• Was the first to popularize the
concept of Management By
Wandering Around (MBWA)
•