CHAPTER 1

OVERVIEW OF TOTAL QUALITY MANAGEMENT

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High quality product and service, associated with customer satisfaction are the key to survival for
any enterprise
Corporations now a day needs to have four types of ability characteristics :
To understand what customer wants and to provide it, immediately on demand, at the lowest cost.
To provide products and services of high quality and reliability consistently.
To keep up with the pace of change, technological as well as political and social.
To be one step a head of the customers needs: that is , to predict what the customer will want one
year or ten years from now.
To attain these abilities (characteristics) requires an approach of managing for total quality, of
managing for effectiveness and competitiveness, involving each and every activity and person at all
levels of the organizations. This is called Total Quality Management
TQM is a culture a culture advocating a total commitment to customer satisfaction through
continuous improvement and innovation in all aspects of business.
The customer in TQM is every individual or dept. within the organization, which can be viewed as a
chain, of which final part is end customer.
In complex business of today many different skills are involved, are heavily relying on each other.
Hence there is a need for common language, which TQM can supply.
Actions required for the customer satisfaction become the everyday duties of every individual or
division within the organization. Some of the routine duties could be as follows;
To monitor performance and customer satisfaction levels.
To identify improvements necessary in the customer interface.
To deliver improved customer products and services at the lowest cost.
To assess and agree the customers requirements.
To tailor output to the customer demands.
TQM culture will very from company to company. However, the essential principles are the same
and equally useful.
Achievement and maintenance of quality on total scale is essential feature of TQM.
Major achievement and mainte4nance of TQM include cost reduction and corporate success.
Continuous improvement and innovation are other objectives.
In a TQM culture, the top managers are themselves the advocates of change.
Progress and success for a company, can materialize only when committed management accepts the
challenge of change.
TQM provides an environment where fear is eliminated and all the employees take pride in their
work.
TQM needs establishment of the following three fundamental characteristics
Commitment ( to never ending quality improvement and innovation)
Scientific knowledge (of the proper tools and techniques)
Involvement ( all in the team, for the social change)
The above characteristics are so important that they can be considered as the axioms of the TQM
culture. It is as shown in the figure below;

Axiom
Axiom1:
1:Commitment
Commitment

Fig.: The TQM triangle

Axiom 2: Scientific Knowledge
Axiom
Axiom3:
3:Involvement
Involvement

Total quality management is a culture; inherent in thin culture is a total commitment to quality and an
attitude expressed by everybodys involvement in this process of continuous improvement of
products and services, through the use of innovative scientific methods
Each of the axioms will consolidate the above definition.

Commitment:
- A management commitment to continuously improving the quality of products and services is
obvious necessity.
- Commitment should be demonstrated by actions from very beginning, with the publication of signed
quality policy and formation of steering committees and quality councils.
Scientific Knowledge:
- This is a scientific theory supporting the tools that are being used for quality
- The majority of scientific methods are applicable to both manufacturing and service industry.
- Scientific knowledge helps in the creation of the proper conditions so that all employees can take
responsibility for the quality of their own tasks and accept ownership certain quality of their problems
as they arise.
- A commitment to quality without the proper means, to make it a reality can only be a short lived
commitment.
- One of the main advantages of scientific knowledge is that it provides a common language which can
facilitate communication between different departments and between individuals.
Involvement:
- The axiom 1 is concerned with structural aspect while axiom 2is concerned with technological
aspects. Axioms 3 concerned with social aspect.
- TQM will not be successful unless the social factor is properly addressed.
- Since it concerns everybody in the company and requires a new social attitude and a new network of
relationships.
- Taking pride in ones work and being involved in the achievement of excellence are the real
motivators for the long term.
- Involving everybody in the common pursuit of quality will ensure that all interdependent processes
can function to their max-capacity, and can be seen to do so right the way through.

The Deming Approach

- Dr.W.Edwards Deming has been called the founder of the third wave of the Industrial revolution.
- Deming advocates the implementation of a statistical quality management approach.
- The advocates that mangers at top should understand usefulness of statically tools for achieving
enhanced quality and increased productivity.
- His philosophy is encapsulated in his 14 points for management
- His 14 points are;
1. Create constancy of purpose for continual improvement of product and service.
2. Adopt the new philosophy for economic stability.
3. Cease dependence on inspection to achieve quality.
4. End the practice of awarding business on price tag alone.
5. Improve constantly and for ever system of production and service
6. Institute training on the job.
7. Adopt and institute modern methods of supervision and leadership.
8. Drive out fear.
9. Break down barriers between departments and individuals
10. Eliminate the use of slogans, posters and exhortations
11. Eliminate work standards and numerical quotas
12. Remove barriers that rob the hourly worker of the right to pride in workmanship
13. Institute a vigorous performance of education and retraining
14. Define top managements permanent commitment to ever improving quality and productivity.
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The essential elements of his processoriented approach can be represented by only three main
principles , according to B.J.Joiner, Which is known as Joiner triangle
1. Obsession with quality
2. Use of scientific method
3. All in one team
Obsession
Axiom 1: Commitment
with quality

Axiom
Use
of scientific
2: Scientific
method
Knowledge
All
Axiom
in one
3: team
Involvement
Fig. The Joiner Triangle.

Dr. W.E.Deming, helped the Japanese to rebuild their industries after world war II
The transformation of an industry is only possible when unforgivable sins or deadly (DD) are
eliminated according to Deming

Demings deadly sins are;

1. Lack of constancy of purpose
2. Emphasis on short term profits
3. Evaluation of performance , merit rating, or annual review of performance
4. Mobility of management
5. Use of visible figures only

Implementing the Deming philosophy:

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It is important to understand that there is a need to understand clearly the level of corporate cultural
changes required before implementing the Deming philosophy.
Although improvements can be attained by partial adoption of Demings techniques, the massive
breakthroughs can only happen by complete adoption.

Demings Action plan:

Step1:
Top managers will struggle over the fourteen points, the deadly diseases and the obstacles; then they
will agree on their meaning, their implication and the directions to take.
Step2:
Top managers will adopt the new philosophy and the new responsibilities with pride and a
determination to break with the old traditions.
Step3:
Using the seminars and other means of communication, management will explain why change in
everybodys current practice in necessary.
Step4:
Every activity is seen as a stage in a process. Every stage is the customer of the previous stage and the
supplier to the next one. It ensures that customers are always satisfied.
Step5:
The process is set up for the construction of an organization to guide continual quality improvement.
Step6:
Everybody takes part in a team effort with the aim of improving the input and output of any stage.
Every team member should contribute ideas and plans.
Step7:
Construct an organization for quality with the help of statisticians
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Deming triangle which is similar to TQM and Joiner Triangle will help in implementation of TQM
It represents the three fundamental principles that Demings philosophy is all about.
The Deming triangle is as shown in the figure below:

Management commitment
Axiom 1: to
Commitment
Improvement (points 2, 14, 1)

Improve interrelationships
(Points 9, 8, 10, 11, 12, 7, 4)

Apply the Statistical Methodology

(Points 6, 13, 5, 3)

Fig. The Demings Triangle

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All efforts should be directed towards the complete satisfaction and delight of the final external
customer, through quality and innovation.
According to Deming, process could be any individual activity, is a series of interdependent functions
that work together towards the aim of the organization. It is as shown in the figure below.

Fig Demings Chain Reaction

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According to Deming, there is ongoing cycle of activities, which require procedure to assist in the
establishment of long term existence of a quality organization.
This cycle is called as Deming cycle, consists of 4 major stages.
It is also called as PDCA (Plan, Do, Check, Act) cycle
It reflects the basis of a self- sustaining quality programme.
It is the classic problem solving and loop learning model.

Fig. The Deming Cycle

Plan :
- Process of improvement should start in carefully planning the route of action.
- It involves a great deal of understanding, documenting, evaluating, and assessing the tools to be used
for an effective quality programme.
- At this stage, decision should be taken on the objectives to aim for, changes that are needed etc..
- It also involves defining the performance measures used and who should be responsible for what.
Do:
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Implementation should follow the planning. This will include training in scientific methods
It also include survey of what customers used and expectations, identify core processes etc..

Check:
- This involves measuring and observing the effects of any change or test carried out at the do stage,
analysis of results, feedback and review.
- Using actual data, deviations from original expectations should be evaluated and investigated.
- It is required to have proper performance measured for check.
Act:
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Corrective action can take place based on lessons we learn

A study of current situation is done, and standardizing a new process is carried out.
The review at the checking stage can be used as a learning process.

Voice of Producer

Output

Input

Supplier
Or
Producer

People
Equipment
Material
Methods

Process
Or
System

Products
or Services

Customer

Voice of Customer
Fig. The PDCA cycle and the System

JURANS QUALITY TRILOGY:

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Dr. Juran is a Balkanborn American, was invited to Japan by the union of Japanese Scientists and
Engineers in the early 1950s
He has written several books on quality , and some of them are;
o
o
o
o
o
o
o

Quality control hand book

Quality planning and analysis
Management of quality
The corporate director
Managerial breakthrough
Upper management and quality
Juran on planning for quality etc.

Juran defines quality as fitness for use, which demands quality of design, quality of conformance,
availability and adequate field service.
He said that, there are no short cuts to quality. He said; Emphasis should be put on the results and the
experience gained from those results
He recommended a formula for results which comprises four important stages:
1.
2.
3.
4.

Establish specific goals to be reached

Establish plans for reaching the goals
Assign clear responsibility for meeting the goals.
Base the rewards on results achieved.

- All the above stages have a lot to do with planning.

- Planning for quality is seen by Juran as an indispensable part of the quality trilogy; Quality Planning,
Quality control and quality improvement.

Quality Planning:
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Juran insists that quality does not happen by accident, it must be planned

This quality planning consists of following steps ;

1. Identify customers and their needs (internal customer and end-recipients)

2. Translate the customers needs into a language everybody can understand, and develop a product
which can respond to those needs.
3. Optimizing the product by developing and optimizing the process which produces this product
4. After establishing the operating conditions; which are optimal, transfer the process to operations.
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Cost considerations when planning is done are important criteria. Any improvement should be studied
quality wise and cost wise.

Quality Control:
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Control is the process of defecting and correcting adverse change.

Conforming to quality specification requires action to restore status quo.
Companies can use- audits, watchdogs, statistical control limits as a means of sounding alarm.
It is important to know that, only a process is control is predictable and hence receptive to efforts for
further improvement.
Chronic waste is common phenomenon to most of the companies, which the management should take
care of.
Juran says that chronic quality losses amount to more than 80% of all losses, and they can be
controlled by management.
He emphasized that the majority of the current quality problems are the fault of poor management
rather than poor workmanship on the shop floor.
He said management action of the system will help to bring about the third stage of the quality
trilogy.

Quality Improvement:
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A quality breakthrough is needed to reduce chronic waste.

Breakthrough is an improvement which takes us to an unprecedented level of performance; it is an
organized creation of beneficial change.
Clear priorities for project have to be decided and clear responsibilities for guiding the projects have
to be assigned.
Juran is of the opinion that; no amount of desire for improvement will get results unless projects are
chosen and given priority, and unless responsibilities are clear.
Creating quality department will not yield results. Management is the major influence on quality
matter, not the work force.
The workers can only contribute as much as the system allows them to. The majority of yield failures
and company defects have their origin in matters which are inherently beyond the capacity of
workforce.
System consists of long-range policies, company wide training, inter departmental communication
and coordination purchased material etc.. If these are taken care by management, the system itself
improves, the workforce can participates and better utilize their education and creativity.
In this way many valuable lessons can be learned which can then be fed back to improve quality
planning in the next repetition of the quality trilogy stages.

The Universal breakthrough sequence:

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It is imperative to develop the habit of making annual improvements in quality and annual reductions
in quality costs.
Continuous effort is need to achieve breakthrough. This requires an organized sequence of activities.
Juran suggests that assist the management in acquiring this habit.
The main ingredients of this performance are;
o Accept responsibility for making improvement
o Understand the universal sequence of events for making improvement (The universal
breakthrough sequence)
o Become familiar with key concepts and techniques
o Apply universal sequence to actual company problems.

Juran is of the opinion that universal breakthrough sequence is the same sequence. It can be seen as
a road map to success.

It follows certain stages in particular order;

o Proof of the need
o Project identification
o Organization for improvement
o The diagnostics journey
o Remedial action
o Breakthrough in cultural resistance to change.
o Holding the gains control at the new level.

CROSBY AND THE QUALITY TREATMENT:

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Philip B. Crosby is another of the American quality gurus who rose to the international fame mainly
thanks to his teaching on quality management
o Quality is free
o Quality without tears
o The art of getting your own sweet way.
He is best known for the concept of zero defects (ZD) and DO it right first time.
In coming sections we will outline the main principles of Crosbys philosophy.

1. Crosbys diagnosis of a troubled company

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He sees a troubled company as a patient in need of a quality vaccine.

Trouble with quality inside will result in trouble with the customer outside.
Customer dissatisfaction is the symptom of a diseased company.
There are other symptoms also, which are usually the sequence of another.
Some of the main symptoms are:
o The company has an extensive filed service for reworking and corrective actions.
o The outgoing product normally deviates from the customers requirements.
o Management does not provide a clear performance standard, so the employees develop their
own.
o Management denies it is the cause of the problem.
o Management does not know the price of non-conformance.
o These symptoms are indicative of a company that always has problems with quality
o Crosby recognizes interrelated symptoms which characterize a company with a poor track
record in the quality improvement effort, the most of which are;
1. The improvement effort is only at lower level, as though senior management is not
responsible.
2. The effort is called a program rather than process.
3. The fact of believing that defects are inevitable, and economics of quality requires errors
4. Management non-involvement in the quality effort.

2. Crosbys quality vaccine

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Crosbys quality vaccine is based in integrity and dedication to customer satisfaction, and on a
company. Wide system of policies and operations designed to achieve and communicate quality
improvements.

The major part of the vaccine should be integrity. Communication information about identified errors,
opportunity for improvements, quality progress and recognition is also of paramount importance for
the quality vaccine to be effective. Systems and operations are also an important point is Crosbys
vaccine.
The triangle of Crosby is also shown in figure below;

Axiom
Integrity,
1: Commitment
Policies

Systems, Operations

Communication

Fig. Crosbys Triangle

3. Crosbys absolutes for quality management

First absolute: The definition of quality is conformance to requirements, not goodness
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The definition of quality can never make any senseless it is based on exactly what the customer
wants.
Management has the following three tasks to perform.
1. Establish the requirements to be met and communicate them to employees.
2. Provide the appropriate tools and techniques
3. Provides continuous support and encouragement

Second Absolute: The system of quality is prevention

To be successful study the process and perform some sort of risk analysis, identify
opportunities for error.
A company which relies on mass inspection of the final output to improve quality is doomed
to stagnation
Prerequisite of prevention is an understanding of the process.

Third Absolute: The performance standard is zero defects

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It is important to do the things right first time, on time, every time.

Determination, coupled with a system of management which provides the communication needed
and the tools for prevention, can succeed in making zero defects (ZD) a reality
ZD program indicates that there is no room
Crosby admits that many managers misunderstood the concept of DZ program

Fourth Absolute: The measurement of quality is the price of non-conference.

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Quality has to be measured in financial terms to attract management

If one measures the cost of consequences involved in doing things wrong, these can very was
represent 20-40% of the total operating costs.
The price of non-conformance (PONC), mainly the result of not doing things right first time.

4. Crosbys fourteen steps for quality improvement

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Crosby has laid down fourteen steps to assist in the establishment of a quality ethic. The order is not
too important, as most of the steps can run in parallel.

1. Management commitment
- Senior management has to demonstrate a commitment to quality
- A corporate policy on quality should be issued. This needs to be clear and unambiguous, and should
ideally be based on the improvement premise of defect free delivery of products and services on
timer
2. The quality improvement team
- A team need to be set up guide the process of quality improvement. This team will require a definite
direction and leadership , and should have clear access to top management
- Quality improvement team will assist in the changing of the system to enable quality to flourish
3. Measurement
- Method of measurement will avoid frustration and hassle
- Every part of any activity, its input, process work and output, lends itself to measurement.
4. The cost of quality
- calculating how much poor quality is costing the company can be beneficial in getting managements
attention, in providing an incentive for improvement.
- Crosby believes that the quality costs need to be identified objectively, pulled together and fed into
the regular management process formally, and treated as a positive rather than a threatening item.
5. Quality awareness
- An adequate system of communication is vital for a company
- Awareness should be spread throughout the organization and be adopted to the companys culture.
- Crosby is not against slogans or poster about zero defects or Do it is right time
6. Corrective action
- The main purpose of corrective action should be to prevent error or identify and eliminate causes of
problems for ever.
- Corrective activities need to be based on analysis of past data so that the causes of problems are
determined and taken of permanently
7. Zero defects planning
- Proper planning is required for the concept of ZD to become properly embedded in the company
culture.
8. Employee education
- An investment in quality education can result on quantum leaps in improvement.
- Crosby summarize the entire education process in what he calls the six Cs
o Comprehension
o Commitment
o Competence
o Communication
o Correction
o Continuance

9. Zero defects day[(ZD) day]

- Crosby recommends that a ZD day is planned to reward serious efforts, and is celebrated at least
annually with speakers representing senior management, the customers, the unions and even the city
or region.
10. Goal setting
- Goal setting is the immediate consequence of measurement.
- The ultimate goal is that of zero defects, and all immediate and intermediate goals should move in
that direction
11. Error cause removal
- The performance removal of the cause of error requires a team effort
- Communication will help in identification of common source of error and permanent elimination.
12. Recognition
- Recognition is necessary as a guideline to help the improvement efforts in the right direction
13. Quality Council
- Al quality professional can be brought together in one group under the name quality council.
- These people will define mission, vision, values and policies necessary for managing the
improvement process.
14. Do it all over again
- The process of learning, participating, experimenting with new methods and improving should never
end.
- Quality improvement has to be become the culture of the company, and this can only happen if the
effort is a continuous one.
- Continuous re-education and involvement, actively supported by top management, are the keys in
making quality attainment an enduring way of life.

IMAIS KAIZEN:
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Masaaki Imai is the chairman of the Cambridge corporation based in Tokyo, which he founded in
1962
Imai brought management philosophies, theories and tools that have been popular in Japan over the
years as a single concept- Kaizen.
According Imai, Kaizen is the tool responsible for Japans economic success.

The concept:
- Kaizen means continuous process improvement involving everybody.
- Kaizen philosophy advocates ongoing improvement not only in working life, but also in personal life,
home life and social life.
- The kaizen improvement is by definition a long-term and long lasting improvement, the result of a
team effort; it is process oriented and actually requires little investment, but great effort, to
maintain.
Kaizen and innovation:
- Kaizen improvement contrasts sharply with other type of drastic improvement which is usually result
of innovation.
- Kaizen and innovation are two complementary aspects that both lead to improvement
- Kaizen is process-oriented, where as innovation is result oriented.
- After second war U.S. Choose the innovation path is order to satisfy the market demands.
- Japan on the other hand promoted and supported team efforts towards gradual improvement of the
processes. This is the basis of kaizen; a process oriented approach.

It is a people oriented approach which promotes discipline, participation and involvement, skill
development, morale and communication. This strategy also includes efforts for innovation and new
ideas.
When breakthrough is achieved, kaizen efforts maintain it and improve it. This will help in keeping
the gain and it also created the condition to upgrade the standards and to achieve further breakthrough
more easily.
Kaizen efforts are needed to maintain as well as achieving new levels of excellence. These is a sense
of urgency in kaizen, an ongoing effort for change.
In kaizen, there is no room for complacency or overconfidence. Everything is considered imperfect
and therefore subject to further change.
According to Tom Peters constant innovation is one of the prerequisites for achieving and sustaining
superior company performance.
Tom Peters model for achieving excellence is as shown in the figure

Care of Customers
Leadership
( MBWAManagement by
wondering
d

Constant Innovation

Fig. Peters Model

People

FEIGENBAUMS THEORY OF TQC:

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TQC is viewed as high road to Kaizen

TQC concept was originated by Feigenbaum.
TQC has written books, Total Quality control and quality control: Principles, practices and
administration.
Feigenbaum advocates a total approach to quality, involving everybody in the process.
He says quality is simply a way of managing business organization, and need a customer oriented,
cost effective quality management programme that all the people in a company can relate and commit
themselves to.
Feigenbaum suggests four steps of an effective quality control system.
1. Setting quality standards
2. Appraising conformance to these standards
3. Acting when standards are exceeded
4. Planning for improvement in the standards
He says quality mindedness should be throughout the organization.
It requires serious programme of quality education and participation. It is aimed at stimulating and
building up operator responsibility and interest in quality.
The major contribution to quality was his recommendation that quality costs should be categorized
and separately managed.
Major costs identified by him are
1. Failure costs
2. Appraisal costs
3. Prevention costs

According to Feigenbaum Total quality system is the agreed company-wide and plant-wide work
structure, documented in effective, integrated technical and managerial procedures, for guiding the
coordinated actions of the people, the machines and the information of the company and plant, in the
best and most practical ways to ensure customer quality satisfaction and economical costs of quality.
He said proper investment in quality planning and prevention activities can lead to a substantial
reduction in failure costs (scrap, reworking etc.) and even appraisal costs (inspection, audits etc.)

ISHIKAWAS COMPANY-WIDE QUALITY CONTROL (CWQC)

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The concept of CWQC is associated with professor Kaoru Ishikawa.

He is the pioneer in Japan of certain quality tools such as the cause and effect diagram and
movements such as quality circle(QC)
Ishikawa strongly believed in providing proper quality control education
He has produced down-to-earth text books for quality circle members, concentrating on simple
statistical techniques for data collection And presentation.
Cause and effect diagram (or fishbone diagram) can be used in identifying possible causes of
variation and their interrelationships.
Ishikawa is also associated with the company-wide quality control movement which started in Japan
in the years following the visits of Deming and Japan.
Efforts well concentrated with controlling and improving the quality not only of the final product.,
but also of the management, the after sales service and the company itself.