TOTAL QUALITY MANAGEMENT

Total Quality Management (TQ, QM or TQM) and Six Sigma (6) are sweeping culture
change efforts to position a company for greater customer satisfaction, profitability and
competitiveness.
TQ may be defined as managing the entire organization so that it excels on all dimensions of
products and services that are important to the customer.
We often think of features when we think of the quality of a product or service; TQ is about
conformance quality, not features.
DIMENSIONS OF QUALITY
1. Performance: Will the product/service do the intended job?
2. Reliability: How often does the product/service fail?
3. Durability: How long does the product/service last?
4. Serviceability: How easy to repair the product / to solve the problems in service?
5. Aesthetics: What does the product/service look/smell/sound/feel like?
6. Features: What does the product do/ service give?
7. Perceived Quality: What is the reputation of the company or its products/services?
8. Conformance to Standards: Is the product/service made exactly as the
designer/standard intended?
WHY CARE ABOUT QUALITY
1. increase productivity
2. expand market share
3. raise customer loyalty
4. enhance competitiveness of the firm
5. at a minimum, serve as a price of entry

QUALITY IN DIFFERENT AREAS OF SOCIETY

Area
Airlines
Health Care
Food Services
Postal Services
Academia
Consumer Products
Insurance
Military
Automotive
Communications

Examples
On-time, comfortable, low-cost service
Correct diagnosis, minimum wait time, lower cost, security
Good product, fast delivery, good environment
fast delivery, correct delivery, cost containment
Proper preparation for future, on-time knowledge delivery
Properly made, defect-free, cost effective
Payoff on time, reasonable cost
Rapid deployment, decreased wages, no graft
Defect-free
Clearer, faster, cheaper service

OLD QUALITY VS NEW QUALITY

Difference between old quality (Rolls Royce, personal banker, ...) and new quality is that old
was the work of craftsmen and the new is the work of a system (Toyota, Big Mac, Boeing
Aircraft, Disney World, ...). The old is expensive, made for the few, using skilled hands, is
beautiful and functionally based. The new reduces cost, made for the many by intelligent
minds and should drive the economy and make business more competitive.
QUALITY GURUS
Deming: The father of the quality movement. Scientific approach to quality
Juran: Quality by design
Crosby: Quality is free

THREE OF THE QUALITY GURUS COMPARED

PO

PUL
A
R

TQM APPROACHES

DEMINGS 14 POINTS
1. Constancy of purpose
2. Adopt the philosophy
3. Dont rely on mass inspection
4. Dont award business on price
5. Constant improvement
6. Training
7. Leadership
8. Drive out fear
9. Break down barriers
10. Eliminate slogans and exhortations
11. Eliminate quotas
12. Pride of workmanship
13. Education and retraining
14. Plan of action
THE JURAN TRILOGY

CROSBYS 14
QUALITY STEPS

1. Management commitment
2. Quality improvement teams
3. Quality measurement
4. Cost of quality evaluation
5. Quality awareness
6. Corrective action
7. Zero-defects committee
8. Supervisor training
9. Zero-defects day
10. Goal-setting
11. Error cause removal
12. Recognition
13. Quality councils
14. Do it over again
1992 BALDRIDGE AWARD CRITERIA (1000 POINTS)

ELEMENTS OF TQM

Leadership
o Top management vision, planning and support.
Employee involvement
o All employees assume responsibility for the quality of their work.
Product/Process Excellence
o Involves the process for continuous improvement.
Continuous Improvement
o A concept that recognizes that quality improvement is a journey with no end
and that there is a need for continually looking for new approaches for

improving quality.
Customer Focus on Fitness for Use
o Design quality
Specific characteristics of a product that determine its value in the
marketplace.
o Conformance quality
The degree to which a product meets its design specifications.

TQM AND CONTINUOUS IMPROVEMENT PROGRAMS

1. Committed leadership
2. Adoption and communication of TQM
3. Closer customer relationships
4. Closer supplier relationships
5. Benchmarking
6. Increased training
7. Open organization
8. Employee empowerment
9. Zero-defects mentality
10. Flexible manufacturing
11. Process improvement
12. Measurement
TQM & ORGANIZATIONAL CULTURAL CHANGE

TRADITIONAL APPROACH
Lack of communication

TQM
Open communications

Control of staff

Empowerment

Inspection & fire fighting

Prevention

Internal focus on rule

External focus on customer

Stability seeking

Continuous improvement

Adversarial relations

Co-operative relations

Allocating blame

Solving problems at their roots

THE CENTURY OF QUALITY

1920 - INSPECTION

Industrial Revolution
o mass production
o unit verification
o defective product
Taylor's conception of work
Measurement, comparison and verification activities
Focus on the quantity produced

1930 STATISTICAL CONTROL

Sampling inspection
Use of statistical tools
First concerns regarding prevention:
o identification of causes for defective products
Focus on the finished product

1930 STATISTICAL CONTROL

Seven Basic Quality Tools:

o Flowcharts and Process Maps
o Check lists
o Cause-effect diagrams
o Pareto diagrams
o Histograms
o Scatter diagrams
o Control charts

1960 QUALITY WARRANTY

First quality standards

Customers specifications
Preventive actions
Systems approach
Started the concern about involving everyone in the organization
Focus on the manufacturing process

1970 QUALITY MANAGEMENT PROGRAMS

Evolution from the Quality Warranty phase

 Integration of quality on global management

Quality Circles
Audit
Focus on the work process
1980
TOTAL QUALITY
Management Principles:
o Responsibility delegation
o Staff autonomy
Satisfaction of needs and expectations
Struggle for improvement
Adaptation needs
Change management
Focus on the organizational process
Quality Management System: A set of organizational measures which transmit
maximum confidence that a given quality level is being achieved with the adequate
resource consumption
Characteristics:
o External focus: at the client
o Global approach and as an integral component of the organization strategy
o Horizontal vision within the organization, from top management to staff
o Includes all the concerned parts
o Continuous learning and adaptation to change
Tools and methodologies:
o Re-engineering
o QFD Quality Function Deployment
o Benchmarking
o Inquiries: clients and staff
o Brainstorming
o Balanced Scorecard
1990 - ... EXCELLENCE MODELS

Orientation guide
Flexible and adaptable instrument
Self-assessment and continuous improvement models
Support on the pathway to excellence
Focus on customer