Chapter 1 and 2

BAHIRDAR UNIVERSITY
INSTITUTE OF TECHNOLOGY
SCHOOL OF MECHANICAL AND INDUSTRIAL ENGINEERING
Production Engineering and Mgt Graduate Program
Total Quality Management
Instructor : Amare Matebu (Dr.-Eng.)
OBJECTIVES OF THE COURSE

1. Be familiar with quality and total quality
management philosophies and approaches.
2. Familiar with quality policy development
and quality planning techniques.
3. Compare and contrast TQM and ISO 9000.
4. Familiar with quality process monitoring,
analysis and control tools.
5. Expose students to organizational wide
continuous quality improvement.
Amare Matebu (Dr.-Eng) - IOT, BDU
CHAPTER 1
INTRODUCTION
What is Quality ?
Quality connotes different meaning to different people.
Quality is degree of excellence. (Dictionary)

Quality is fitness for use. (Juran)
Quality is conformance to requirements /
specifications. (Crosby)
Quality should be aimed at the needs of the
customer, present and future. (Deming)
Quality is what the customer says it is.(Fegenbaum)
Concept of Quality
Quality, if it is introduced and managed

correctly, it will:
Eliminate waste
Improve customer satisfaction;
Lower cost;
Increase productivity;
Enhance profitability; and
Increase competitiveness.
Quality
reached,
is
not
can
a
be
goal,
which,
sustained
once
without
constant effort.
The goalposts are always moving.
Competitors
improve,
suppliers
slip,
customer demands change and increase.

Quality must become the first objective
for all managers at all times.
Different scholars give different interpretations to

the term quality. Quality for:
Engineers it is conformance to specifications,
Users it is fitness for use,
Marketing it is the degree of excellence at an
acceptable price that will influence the market
share.
Customer service a quality product is that with
less customer complaint.
A comprehensive definition of quality is

that product or service which fulfils an
aggregate requirement of customers, in
all aspects, at present and in the future
and which customers can buy it.
Dimensions of Quality
British Standard, BS4778 explains quality as The
totality of features and characteristics of a product or
service that bear on its ability to satisfy stated or
implied needs.
These views to quality refer to one way or the other, to
the following dimensions of quality:
- Functionality,
- Durability,
- Performance,
- Serviceability,
- Reliability,
- Aesthetic, and
- Conformance,
- Perceived quality.
1. Performance : (will the product do the intended job).

Potential customer usually evaluate a product to
determine if it will perform certain specific functions
and determine how well it perform them.
2. Reliability: (how often does the product fail?)
Complex
products,
such
as
many
appliances,
automobiles, etc will usually require some repair over

their service life. We should expect that an automobile
will require occasional repair, but if the car requires
frequent repair, we say that it is unreliable.
3.Durability: ( how long does the product last).

This is the effective service life of the product
customer obviously want products that perform
satisfactorily over a long period of time.
4.Serviceability: (how easy is it to repair a product).
There are many industries where the customers view
of quality is directly influenced by how quickly and
economically a repair or routine maintenance
activity can be accomplished.
5.Aesthetics (what does the product look like?)

This is the visual appeal of the product, often taking
into account factor such as style, color, shape,
packaging alternatives, tactile characteristics, and
other sensory features.
6.Features: (what does the product do?)
Usually, customer associate high quality with
products that have added features: that is, those
that have features beyond the basic performance
of the competition.
7.Perceived quality: (what is the reputation of the

company or its product?)
In many cases, customer rely on the past reputation of
the company concerning quality of its products. This
reputation is directly influenced by failures of the
product that are highly visible to the public .
8.Conformance to standards: (is the product made
exactly as the designer intended?)
We usually think of a high quality product as are that
exactly meets the requirements placed on it.
WHAT IS THE SECRET

BEHIND THE SUCCESS OF
BUSINESS ORGANIZATIONS?
Quality products & services
Customer Satisfaction
Customer satisfaction
Survival
Competitiveness
Excellency
Customer Question
Would you please jump ?
Manufacturer Response
He jumped say 1 meter.
How much meter?
I do not want to jump!
Do not ask me to jump!

Does this saying coincide with the Quality concept ?
A
B
Quality Control and Quality assurance

What is Quality Control?
Quality control is the engineering & management
activity by which we measure the quality
characteristics of the product, compare them
with specifications or requirements, and take
appropriate remedial action whenever there is a
difference between the actual performance and
the standard.
Quality control consists of developing,

designing, producing, marketing and
servicing products and services with
optimum
usefulness,
costwhich
effectiveness
and
Customers
will
purchase with satisfaction.

(Ishikawa)
What is Quality Assurance?

Quality Assurance (QA) is a process-centered
approach to ensuring that a company or
organization is providing the best possible
products or services. It is related to Quality
Control, which focuses on the end result, such
as testing a sample of items from a batch
after production.
Although these terms are sometimes used

interchangeably, quality assurance focuses on
enhancing and improving the process that is
used to create the end result, rather than
focusing on the result itself.
Among the parts of the process that are
considered
in
QA
are
planning,
development, production and service.

design,
Quality assurance (QA) refers to the planned and

systematic activities implemented in a quality
system so that quality requirements for a product
or service will be fulfilled.
It is the systematic measurement, comparison
with a standard, monitoring of processes and an
associated feedback loop that confers error
prevention. This can be contrasted with quality
control, which is focused on process outputs.
Two principles included in QA are: "Fit for

purpose", the product should be suitable for
the intended purpose; and "Right first time",
mistakes should be eliminated.
QA includes management of the quality of raw
materials,
assemblies,
products
and
components, services related to production,

and management, production and inspection
processes.
Evolution of Quality and TQM

The essence of any organization is the products / services it offers.
Growth and success are based to a large extent on an
organizations ability to introduce new and develop existing
services and products.
Introducing new product and developing existing services and
products is the lifeblood of organizations. (Terry Hill)
Quality products design begins with product specifications based
upon what customers need.
What differentiates winners from losers is that winners provide
products and services with better quality, cheaper price, faster
time, and more agile. (John M. Nicolas)
HISTORY OF QUALITY PARADIGMS

It is possible to divide quality paradigms into three categories
1- Pre-industrial quality paradigm: It is from ancient times until
the industrial evolution. Producers produced goods of certain
quality and it was up to the consumer to appraise the quality of
these goods.
2- Industrial Era quality paradigm (Quality control paradigm):
The industrial evolution raised the level of product and process
complexity, and hence a new quality paradigm of quality control
was born.
3- TQM or Customer Driven Quality paradigm: During the
latter part of the 20th century global competition forced
organizations to become equally concerned about the
improvement of quality, hence a third paradigm arose, that of
total quality management (TQM).
SHIFT OF QUALITY
Period of change from

Isolated Economy
Global
Economy
Quantity to Quality
Focused on
Quantity
Pre-World war II
Focus on
Quality
1945
1990'S
EVOLUTION OF QUALITY
Quality: Then and Now
Old Quality is:
New quality is:
Technical
About products
Led by experts
For inspectors
High grade
About control
About specifications
Strategic
About organizations
Led by management
For everyone
The appropriate grade
About improvement
About customer satisfaction
Transformation and performance improvement.

One kind of
production
Mass production
Performance
Improvement
by optimizing
the parts
Product-oriented
Production focus
Agriculture age
Machine age
Flexible
production
Improvement by
optimizing the whole
Process-oriented
Customer Focus
Systems age
The end of an age does not occur suddenly, rather one age fades into the next, and is
characterized by people struggling with the problems of the age while using the tools,
techniques and practices of the past age.
Evolution of Quality
BEM
QM
QA
QC
BEM
Systems
Process
INS
Products
QC
QA
QM
Concept of TQM developed in the late 1940s and

1950s by Deming, Juran, Feigenbum.
Total Quality
Management
Quality
Assurance
Quality
Control
Inspection
Evolution of quality Era
Evolution
CWQC company wide quality control
TQM
TQC &CWQC
TQC
SQC
Inspection
Foreman
Years
Craftsman
1900
1920
1940
1960
1980
1990
2000
Evolution of quality Means & Focus

1975
1980
Quality
Circle
Quality of
Work life
1985
1990
1995
Productivity
Quality
Total
Quality
TQC/TQM
Employee
Involvement
Employees
Empowerment
Operation
2000
Customers
Self Directed
Teams
Self
Directed/
Managed
Teams
Innovations
Defining TQM
Total Made up of the whole(or) Complete.
Quality Degree of Excellence a product or service
provides to the customer in present and future.
Management Act , art, or manner of handling ,
controlling, directing, etc.
TQM is the art of managing the whole to achieve
excellence.
TQM is a way of thinking about goals,

organizations, processes and people to ensure
that the right things are done right first time.
TQM is a management philosophy that seeks to
integrate
all
organizational
functions
(marketing, finance, design, engineering, and

production, customer service, etc.) to focus on
meeting customer needs and organizational
objectives.
"TQM
is
management
approach
for
an
organization, centered on quality, based on the

participation of all its members and aiming at
long-term success through customer satisfaction,
and benefits to all members of the organization
and to society."
Total
Quality
management
awareness
of
Management
strategy
quality
aimed
in
processes.
all
(TQM)
at
is
embedding
organizational
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.
Total Quality is:
Meeting Our Customers Requirements.

Doing Things Right the First Time; Freedom
from Failure (Defects).
Consistency (Reduction in Variation).
Continuous Improvement.
Quality in Everything We Do.
Quality Management System is:

A belief in the employees ability to solve
problems.
A belief that people doing the work are
best able to improve it.
A belief that everyone is responsible for
quality.
Total Quality Management

Quality element
Previous state
Definition
Product-oriented
Customer-oriented
Priorities
Second to service and

cost
First among equals

of service and cost
Decisions
Short-term
Long-term
Emphasis
Detection
Prevention
Errors
Operations
System
Responsibility
Quality Control
Everyone
Problem solving
Managers
Teams
Procurement
Price
Partners/ JIT
Managers role
Plan, assign, control,

and enforce
Delegate, coach,
facilitate, and mentor
TQM
CHAPTER 2
TQM APPROACH
Principles of TQM
There are eight principles of quality management:
1. Customer-focused organization:
organizations
depend on their customers and therefore should

understand current and future customer needs,
meet customer requirements and strive to
exceed customer expectations.
2. Leadership - leaders establish unity of purpose,

direction and the internal environment of the
organization. They create the environment in
which people can become fully involved in
achieving the organization's objectives.
3. Involvement of people - people at all levels are
the essence of an organization and their full
involvement enables their abilities to be used for
the organization's benefit.
4. Process approach - a desired result is achieved

more efficiently when related resources and
activities are managed as a process.
5. system approach to management - identifying,
understanding
and
managing
system
of
interrelated processes for a given objective

contributes to the effectiveness and efficiency of
the organization.
6. Continual improvement - continual improvement

is a permanent objective of an organization.
7. Factual approach to decision making - effective
decisions are based on the logical and intuitive
analysis of data and information.
8. Mutually beneficial supplier relationships mutually beneficial relationships between the
organization and its suppliers enhance the ability
of both organizations to create value.
Scope of the TQM activity
TQM
Tools &
Techniques
Principles &
Practices
Leadership
Customer
satisfaction
Employee
improvement
Continuous
improvement
Quantitative
Non-quantitative
SPC
ISO 9000
Acceptance
Sampling
ISO 14000
Reliability
Benchmarking
Experimental
design
Total productive
maintenance
Supplier
partnership
FMEA
Management tools
Performance
measures
QFD
Concurrent
engineering
TQM Gurus
Major Approaches of quality management are
described below. Let us see the TQM gurus ( for
five quality experts).
1. Deming
6. Genichi Taguchi
2. Juran
7. A. Garvain
3. Crosby
4. Feigenbaum
5. Ishikawa
W. Edwards Deming (19001993)

Quality is an attribute of a product or service that
can only be defined by the customer. Because of
this its meaning is relative.
The job of quality management is to provide the
system and the leadership to facilitate such
proper execution.
Deming noted that workers are responsible for 10
to 20 percent of the quality problems in a factory,
and that the remaining 80 to 90 percent is under
management's control.
The Deming Cycle or PDCA Cycle

PLAN
Plan a change to the process. Predict
the effect this change will have and
plan how the effects will be measured
DO
ACT
Adopt the change
as a permanent
modification to
the process, or
abandon it.
Implement the
change on a small
scale and measure
the effects
CHECK
Study the results to
learn what effect the
change had, if any.
W. E. Deming, who was a statistician during 1940s, is

regarded as the father of the TQM revolution.
When he was once asked to summarize his philosophy
he replied If I have to reduce my message to
management to just few words, I would say, it all had
to do with reducing variation.
Deming emphasized that random or common causes of
variations are inherent in the process which managers
themselves have designed and established them in the
system unknowingly.
Demings fourteen points are:

1.Create
consistency
of
purpose
toward
improvement of product and service, with the

aim to become competitive and thus to stay in
business and to provide jobs.
2. Adopt the new philosophy of the need for higher
quality.
3.Cease dependence on mass inspection to achieve
quality.
4. End the practice of awarding business on the basis of

price tag alone.
5.Improve consistently and forever every process for
planning, production and service.
6. Institute modern methods of training and education on
the job, including management.
7. Adopt and institute leadership.
8. Drive out fear, so that every one may work effectively
for the economy.
9. Break down barriers between staff areas.

10. Eliminate slogans and exhortations asking the
work force for unrealistic targets.
11. Eliminate numerical quotas for the work force
and numerical goals for management.
12.Remove barriers that rob people of pride
of
workmanship.
13.Institute a vigorous program of education and
self-improvement for everyone.
14.Put everyone in the company to work to
accomplish the transformation.
Deming
suggests
that
western
management
suffers from the following deadly diseases.

Lack of constancy of purpose
Emphasis on short-term profits
Evaluation of performance on annual review
Mobility of Top management
Running a company on figure alone with no
consideration for unknown figures
Excessive medical costs, and
Excessive warranty cost fuelled by lawyers.
Some of the obstacles for effective quality

management, according to Deming, are:
Our problems are different management

thinks
Reliance on quality control departments
Quality by inspection
Blaming the workforce
Inadequate testing of prototypes
Quality management according to

Juran consisted of three basic
processes (Juran Trilogy):
1. Quality Planning
developing a process to achieve goals
involving customer satisfaction
2. Quality Control
holding onto gains, controlling
variation, preventing waste
3. Quality Improvement
lowering cost of poor quality
achieving innovation in performance
Joseph Juran
Juran and the Cost of Quality

There are two types of costs: these are:
1. Unavoidable
Costs:
preventing
defects
(inspection, sampling, sorting, QC) and

2.
Avoidable Costs: defects and product failures

(scrapped
materials,
complaint processing,
labour
for
re-work,
losses from unhappy
customers.
Juran has two definitions for quality:

1. freedom from deficiencies and
2. fitness for use which is a utility value
concept, which varies from one customer to
another.
The most significant contribution of Juran to the
TQM movement is the Quality Improvement
Process. The search for all about in neverending improvement of quality of products,
services and processes.
His concept of fitness for use reflects

meeting customer needs and is based on the
following
five
quality
characteristics,
outlined by him:
1. Technological (strength)
2. Psychological (beauty)
3. Time-oriented (reliability)
4. Contractual (guarantee)
5. Ethical (sales staff courtesy)
as
Juran emphasized that the improvement of

product or services and processes applies to all
customers, internal and external. Juran was
the first to recognize that customers are both
internal and external.
a) Internal Customer: Are those departments or
persons who supply products to each other.
b) External Customer: These are impacted by the
product but are not members of the company (or
other institution) which produce the product.
In order to set about improving quality, Juran

has formulated ten steps which companies
can follow:
1) Build awareness of the need and opportunity
for improvement
2) Set goals for improvement
3) Organize to reach goals
4. Provide training
5. Carry out projects to solve problems
6. Report progress
7. Give recognition
8. Communicate results
9. Keep scores achieved on quality improvement
10.
Maintain
momentum
by
improvement
making
annual
Juran was also the first to point out that

the Pareto Principle could be used to
quality improvements. The basis is to
distinguish the important vital few from
the trivial many.
Philip Crosby
Conformance to requirements.
Before the implementation of
the program, Crosby outlines
some quality basics that should
be emphasized to management.
1. Quality means conformance, not elegance.

2. There is no such thing as a quality problem.
3. There is no such thing as the economics of
quality; it is always cheaper to do the job
right the first time.
4. The only performance measurement is the
cost of quality.
5. The only performance standard is Zero
Defects.
Crosby in his book Quality is Free, he

developed the the five absolutes of quality.
1. Conformance to requirement
2. There is no such thing as a quality problem
3. There is no such thing as the economics of
quality.
4. The only performance measurement is the cost
of quality
5. The only performance standard is zero defects.
Crosby has forwarded a fourteen-point plan

for
quality
improvements
issues:
1. Management commitment
2. The quality improvement team
3. Quality measurement
4. Cost of quality
5. Quality awareness
implementation
6. Corrective action
7. Zero defects planning
8. Supervisor training
9. Zero Defects day
10. Goal Setting
11. Error cause removal
12. Recognition
13. Quality councils
14. Do quality improvements process over again
Crosbys other views: if change in organizations

is to occur are:
1. People
will
take
quality
as
seriously
as
management takes it, no more.

2. Integrity is unrelenting
3. The tools of quality, like SPC, are not designed
to cause prevention throughout the organization.
4. Think about quality improvements in terms of
quality per share.
5.
Every
individual
in
the
continual education.
company
needs
A. V. Feigenbaum
Total Quality Control is an effective system for
integrating
the
quality-development,
quality
maintenance, and quality-improvement efforts of

the various groups in an organization so as to enable
marketing, engineering, production, and service at
the most economic levels which allow for full
customer satisfaction.
His major contribution to the subject of the

cost of quality was his recommendation (in
1956) that quality costs should be categorized
and separately managed, as exemplified in his
PAF model.
He
identified
three
major
categories;
prevention costs, appraisal costs, and failure

costs.
Feigenbaum originated the industrial cycle.

The
cycle
production,
elements
includes
marketing,
installation
which
are
and
now
design,
service
considered
essential elements in the management of

quality in an organization as well as in
managing a quality management system
such as ISO 9000.
Kaoru Ishikawa
Basic 7 Tools:
Histograms,
Pareto
Charts,
Cause and Effect Diagrams,

Run Charts, Scatter Diagrams,
Flow Charts, Control Charts
Developed quality circle.
His contribution includes company-wide quality

control and quality circle.
The Japanese type of TQC is that quality
control
should
be
every
employees
responsibility , meaning every one in the

company, in all divisions must study, practice
and participate in quality control.
Ishikawas view is that TQC is a thought
revolution in Management.
The manner in which companies were transformed

may be classified in the following six categories,
which they commonly share:
1. Quality first -not short-term profit first.
2. Consumer orientation -Not producer orientation;
3. The next process is your customer (internal
customer).
4. Using facts and data to make presentations,
utilization of statistical methods.
5. Respect for humanity as a management philosophy
full participatory management.
6. Cross function management.
a.
b.
c.
d.
Ishikawa summarizes his views of quality as

follows:
QC is the responsibility of all workers and all
divisions
Management should set out long-term profits
and put quality first and destroy sectionalism.
TQC is management with facts with a group
activity and cant be done by individuals. It calls
for teamwork.
TQC will not fail if all members cooperate, from
the CEO down to line workers.
e. If TQC is implemented company-wide, it can

contribute to the improvement of a companys
corporate health and character.
f. In TQC, middle management will be frequently
involved & criticized and should be prepared to.
g. Dont confuse objective with the means, such as
statistical quality control, to attain them.
h. QC circle activities are part of TQC.
Genichi Taguchi
The basic elements of his ideas can be
considered under four main headings:
1. Taguchi Loss Function
2. Robust Design of products,
services and processes
3. Reduction in variation
4. Statistically planned
experiments
Taguchi
is
statistician;
a
his
prize-winning
major
Japanese
contribution
is
effective quality of design.

His method focuses on determining the cost
of not meeting the specified target value.
Consequently, he developed the loss function

given by the quadratic equation.
L = k (x t )
Where:
L = loss in terms of money
K= cost coefficient
x= value of quality characteristics
t = target value
Taguchi favors a more proactive quality

practice
of
quality
assurance
through
effective design and development.

Taguchi suggests that the time and effort
spent in designing and planning will save
much more effort, time and money later
during on-line quality control.
David A.Garvain
Garvin has categorized his approaches into five:

1. Transcendental approach
2. Product - based approach
3. User - based approach
4. Manufacturing- based approach
5. Value - based Approach
The other major contribution of Garvin is the

Eight Dimensions of Quality
1. Performance
2. features
3. reliability
4. Conformance
5. durability
6. serviceability
7. Aesthetics, and
8. perceived quality
Operational Model for TQM

TQM has been coined to describe a
philosophy that makes quality the
driving force behind leadership, design,
planning, and improvement initiatives.
For this, TQM requires the help of
those eight key elements.
These elements can be divided into
four groups according to their function.
The groups are:
I. Foundation It includes: Ethics,
Integrity and Trust.
II. Building Bricks It includes:
Training, Teamwork & Leadership.
III. Binding Mortar It includes:
Communication.
IV. Roof It includes: Recognition.
TQM is a collection of
principles,
techniques,
processes, & best practices
that over time have been
proven effective.
No two organizations have
same TQM implementation.
There is no recipe for
organization
success,
however, there are a
number of great TQM
models that organizations
can use.
The model begins with understanding customer

needs. TQM organizations have processes that
continuously
collect,
analyze,
and
act
on
customer information.
TQM organizations use the planning process to
organize action throughout the organization to
manage day to day activities.
TQM organizations use the process management
to develop cost-controlled processes.
Total
Quality
Management
is
represented as a model: The

core
of
the
model
is
the
customer (both externally and

internally) - supplier interfaces.
Management necessities (teams,
tools
and
system)
are
represented in the surrounding

triangle; the outer shell consists
of culture, communication and
commitment.
The model acts as a framework,
which
leads
towards TQM.
the
organization

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BAHIRDAR UNIVERSITY

Production Engineering and Mgt Graduate Program

Total Quality Management

Instructor : Amare Matebu (Dr.-Eng.)

OBJECTIVES OF THE COURSE

Amare Matebu (Dr.-Eng) - IOT, BDU

Quality is degree of excellence. (Dictionary)

Quality, if it is introduced and managed

customer demands change and increase.

Different scholars give different interpretations to

A comprehensive definition of quality is

Amare Matebu (Dr.-Eng) - IOT, BDU

1. Performance : (will the product do the intended job).

automobiles, etc will usually require some repair over

3.Durability: ( how long does the product last).

5.Aesthetics (what does the product look like?)

7.Perceived quality: (what is the reputation of the

Amare Matebu (Dr.-Eng) - IOT, BDU

WHAT IS THE SECRET

Amare Matebu (Dr.-Eng) - IOT, BDU

Quality products & services

Amare Matebu (Dr.-Eng) - IOT, BDU

How much meter?

I do not want to jump!

Do not ask me to jump!

Quality Control and Quality assurance

Quality control consists of developing,

purchase with satisfaction.

What is Quality Assurance?

Although these terms are sometimes used

development, production and service.

Quality assurance (QA) refers to the planned and

Two principles included in QA are: "Fit for

components, services related to production,

Evolution of Quality and TQM

HISTORY OF QUALITY PARADIGMS

Period of change from

Amare Matebu (Dr.-Eng) - IOT, BDU

Old Quality is:

New quality is:

Amare Matebu (Dr.-Eng) - IOT, BDU

Transformation and performance improvement.

Amare Matebu (Dr.-Eng) - IOT, BDU

Concept of TQM developed in the late 1940s and

Evolution of quality Era

CWQC company wide quality control

Amare Matebu (Dr.-Eng) - IOT, BDU

Evolution of quality Means & Focus

Amare Matebu (Dr.-Eng) - IOT, BDU

TQM is a way of thinking about goals,

(marketing, finance, design, engineering, and

organization, centered on quality, based on the

Total Quality Management (TQ, QM or TQM)

Total Quality is:

Meeting Our Customers Requirements.

Quality Management System is:

Total Quality Management

Second to service and

First among equals

Plan, assign, control,

Amare Matebu (Dr.-Eng) - IOT, BDU

depend on their customers and therefore should

Amare Matebu (Dr.-Eng) - IOT, BDU