CHAPTER

Total Quality Management VIII

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 What is TQM?

Total Quality Management

An integrated effort designed to improve
quality performance at every level of the
organization.
Customer-defined quality
The meaning of quality as defined by the
customer.

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 Defining Quality

Conformance to Specifications
How well the product or service meets the targets
and tolerances determined by its designers
Fitness for Use
Definition of quality that evaluates how well the
product performs for its intended use.
Value for Price Paid
Quality defined in terms of product or service
usefulness for the price paid.
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 Defining Quality

Support Services
Quality defined in terms of the support provided
after the product or service is purchased
Psychological Criteria
A way of defining quality that focuses on
judgmental evaluations of what constitutes product
or service excellence.

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 Manufacturing vs. Service

Manufacturing produces a tangible product

Quality is often defined by tangible characteristics
Conformance, Performance, Reliability, Features
Service produces an intangible product
Quality is often defined by perceptual factors
Courtesy, Friendliness, Promptness, Atmosphere,
Consistency

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 Changing Focus
of Quality Management

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 Overview of TQM Philosophy

Focus on identifying root causes of

reoccurring problems & correcting them
A proactive, not reactive approach
Allow customers to determine whats
important (customer-driven quality)
Involve everyone in the organization

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 TQM Philosophy

Maintain a Customer Focus:

Identify and meet current customer needs
Continually gather data (look for changing
preferences)
Continuous Improvement:
Continually strive to improve
Good enough, isnt good enough
Quality at the Source:
Find the source of quality problems & correct them
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 TQM Philosophy

Employee Empowerment:
Empower all employees to find quality problems
and correct them
Focus on internal & external customer needs:
External customers:
People who purchase the companys goods and services
Internal customers:
Other downstream employees who rely on preceding
employees to do their job

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 TQM Philosophy

Understanding Quality Tools:

All employees should be trained to properly utilize
quality control tools
Team Approach:
Quality is an organization-wide effort
Quality circles: work groups acting as problem-
solving teams
Benchmarking
Studying the business practices of other
companies for purposes of comparison.
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 TQM Philosophy

Manage Supplier Quality:

Ensuring that suppliers engage in the same high
quality practices
Strategic partnering with key suppliers
Quality of Design:
Determining which features will be included in the
final design of a product to meet customers needs
& preferences
Ease of Use:
Ergonomics, easy to understand directions, etc.
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 TQM Philosophy

Quality of Conformance to Design:

Degree to which the product conforms to its
design specifications (a measure of consistency &
lack of variation)
Post-Sale Service:
Assisting with issues that arise after the purchase
Warranty & repair issues, follow through on any
promises to build a continuing relationship with the
customer

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 Costs of Quality

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 Ways to Improve Quality

PDSA Cycle
Quality Function Deployment
Problem-solving tools

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Plan-Do-Study-Act Cycle (PDSA)

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Plan-Do-Study-Act Cycle (PDSA)

Plan: Plan experiments to uncover the

root cause of problems
Do: Conduct the experiments
Study: Study the data generated
Act: Implement improvements or start
over
Repeat: Continuously improve
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 Quality Function Deployment

Compares customer requirements &

products characteristics
Understand how the product delivers
quality to the customer

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 Comparing Voices

Voice of the
Engineer

Voice of the Customer-based

Customer Benchmarks

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 QFD

In addition, QFD:
Provides for competitive evaluation
(benchmarks)
Considers design trade-offs & synergies
Facilitates target setting & developing
product specifications

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 Setting Specifications

Trade-offs

Technical
Targets Benchmarks
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 Problem Solving Tools

Cause-and-Effect Diagrams
Flow Charts
Check Lists
Control Charts
Scatter Diagrams
Pareto Charts
Histograms
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 Cause-and-Effect Diagrams

Also called Fishbone Diagrams

Help identify potential causes of specific
effects (quality problems)

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 Flow Charts

Diagrams of the steps involved in an

operation or process

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 Checklists

Simple forms used to record the

appearance of common defects and the
number of occurrences

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 Control Charts

Track whether a process is operating as

expected

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 Scatter Diagrams

Illustrate how two variables are related

to each other

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 Pareto Analysis

Helps identify the degree of importance

of different quality problems

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 Histograms

Illustrate a frequency distribution

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 Quality Awards

Malcolm Baldrige National Quality

Award is given annually to companies
demonstrating excellence
Manufacturing
Service
Small Business
Education
Healthcare

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 MBNQA Criteria

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 Quality Standards

ISO 9000 Standards:

Set of internationally recognized quality standards
Companies are periodically audited & certified
ISO 14000:
Focuses on a companys environmental
responsibility
QS 9000:
Auto industrys version of ISO 9000

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 Quality Gurus

W. Edwards Deming
Joseph Juran
Phillip Crosby

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 W. Edwards Deming

Focus on optimizing the system - not

individual components
Management is responsible for the
system (source of 85% of problems)
Continuous improvement (focus on
prevention, not after-the-fact inspection)
Understand variation (special versus
common causes)
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 Joseph Juran

Quality = fitness for use

Developed the quality trilogy:
Quality planning (future orientation/design quality)
Quality control (statistical control of variation)
Quality improvement (continuous improvement)
Emphasized the costs of quality:
Understand the trade-offs between prevention &
appraisal costs with failure costs

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 Phillip Crosby

Quality requires leadership:

Do it right the first time
The goal is zero defects
Argued that quality is free:
The benefits far outweigh the cost of
achieving zero defects

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