Course Grading

EMM5602
Assoc. Prof. Dr. Norzima Zulkifli
OBJECTIVES
 Be able to identify quality’s contribution and role in
industry
 Be able to carry out activities which could upgrade
quality in an organisation
Major Topics
1. Introduction
2. Quality Management
3. Total Quality
4. Customer Focus
5. Continuous Improvement
6. Total quality techniques
7. Factors in Implementing TQM
8. Quality Standards and Awards
Reference
 Evans, Lindsay (2008), The Management and Control of Quality,
7th ed., South Western Cengage Learning
 Besterfield, Dale H., (2001). Total Quality Management. 2nd ed.
Prentice Hall.
 Ryan, T.P (2000). Statistical Methods for Quality Improvement.
John Wiley & Sons New York, 6th ed.
 James, P. (1996), Total Quality Management, An Introductory
Text. Prentice Hall, London
 Or any other similar books
Grading
Group project 20%
Group Assignment/
Class Exercise 20%

Individual assignment 20%

Final 40%
Individual Assignment-Journal
paper
Do a literature review on the subject of total quality management.
Investigate and discuss the issues of its current status, popularity
and effectiveness in improving organisation’s performance.
Suggest through your reading also how TQM can better be
implemented in order to have better impact to organisation’s
performance.
Write the journal paper in not more than 10 pages and submit it in
the last class of the semester; softcopy only that should be
downloaded in the turnitin (password and username will be
given later). The format should follow a journal paper format.
Plagiarism will be penalised.
Group project
You are a TQM consultancy company and would like to
propose your service to a company/organisation who
would like to implement TQM. Assess the
organisation’s situation and propose a customised plan
of implementation of TQM for the
company/organisation as quotation of your service.
Write this proposal in not more than 15 pages and
present it in our last class.
Introduction to
Quality

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Modern Importance of Quality
“The first job we have is to turn out quality
merchandise that consumers will buy and keep
on buying. If we produce it efficiently and
economically, we will earn a profit, in which
you will share.”
- William Cooper Procter

Quality, productivity, and cost remain imperatives for modern organizations.

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Key Idea
Building—and maintaining—quality into
an organization’s goods and services,
and more importantly, into the
infrastructure of the organization itself, is
not an easy task.

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Quality Assurance
...is any planned and systematic activity directed
toward providing customers with goods and
services of appropriate quality, along with the
confidence that products meet consumers’
requirements.

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 History of Quality Assurance
(1 of 3)

 Skilled craftsmanship during Middle Ages

 Industrial Revolution: rise of inspection and separate
quality departments
 Early 20th Century: statistical methods at Bell System
 Quality control during World War II
 Post-war Japan: evolution of quality management as
promoted by Deming and Juran

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History of Quality Assurance
(2 of 3)

 US quality crisis around 1980; growth of product

quality awareness in manufacturing industries
 Quality as a management discipline: from “Little
Q” to “Big Q” – emergence of Total Quality
Management
 Malcolm Baldrige National Quality Award (1987)
 Disappointments and criticism

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History of Quality Assurance
(3 of 3)

 Emergence of quality management in service

industries, government, health care, and
education
 Evolution of quality to the broader concept of
performance excellence
 Growth and adoption of Six Sigma
 Current and future challenge: continue to
apply the principles of quality and
performance excellence. Quality is “a race
without a finish line.”
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Key Idea
Although quality initiatives can lead to
business success, they cannot guarantee
it, and one must not infer that business
failures or stock price dives are the result
of poor quality.

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Contemporary Influences on
Quality
 Globalization
 Social responsibility
 New dimensions of quality
 Aging population
 Health care
 Environmental concerns
 21st century technology

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Defining Quality
Perfection Fast delivery
Providing a good, usable product
Consistency
Eliminating waste
Doing it right the first time
Delighting or pleasing customers

Total customer service and satisfaction

Compliance with policies and procedures
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Formal Definitions of Quality
 Transcendent definition: excellence
 Product-based definition: quantities of
product attributes
 User-based definition: fitness for intended
use
 Value-based definition: quality vs. price
 Manufacturing-based definition:
conformance to specifications

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Quality Perspectives
transcendent &
product-based user-based
needs
Marketing
Customer

products value-based Design

and manufacturing-
services based
Manufacturing
Distribution
Information flow
Product flow
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Key Idea
Because individuals in different business
functions speak different “languages,”
the need for different views of what
constitutes quality at different points
inside and outside an organization is
necessary to create products of true
quality that will satisfy customers’ needs.

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Customer-Driven Quality
 “Meeting or exceeding customer expectations”
 Customers can be...
 Consumers
 External customers
 Internal customers

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Total Quality
 Principles – foundation of the philosophy
 Practices – activities by which principles are
implemented
 Techniques – tools and approaches to make
practices effective

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Principles of Total Quality
 Customer and stakeholder focus
 Employee engagement and teamwork
 Process focus supported by continuous
improvement and learning

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Customer and Stakeholder
Focus
 Customer is principal judge of quality
 Organizations must first understand
customers’ needs and expectations in
order to meet and exceed them
 Organizations must build relationships
with customers
 Customers include employees and society
at large
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Key Idea
To meet or exceed customer expectations,
organizations must fully understand all
product and service attributes that
contribute to customer value and lead to
satisfaction and loyalty.

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Employee Engagement and
Teamwork
 Employees know their jobs best and therefore,
how to improve them
 Management must develop the systems and
procedures that foster participation
 Empowerment better serves customers, and
creates trust and motivation
 Teamwork and partnerships must exist both
horizontally and vertically
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Key Idea
In any organization, the person who
best understands his or her job and
how to improve both the product and
the process is the one performing it.

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Process Focus and Continuous
Improvement
 A process is how work creates value for
customers
 Processes transform inputs (facilities,
materials, capital, equipment, people,
and energy) into outputs (goods and
services)
 Most processes are cross-functional

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Key Idea
A process is a sequence of activities
that is intended to achieve some result

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Process Versus Function

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Continuous Improvement
 Incremental changes as well as larger, rapid
improvements.
 Examples:
 Enhancing value through new products and
services
 Reducing errors, defects, waste, and costs
 Increasing productivity and effectiveness
 Improving responsiveness and cycle time
performance
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Key Idea
Major improvements in response time may
require significant simplification of work
processes and often drive simultaneous
improvements in quality and productivity.

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Deming’s View of a Production
System
Suppliers of
Design and
materials and
Redesign
equipment Consumer
Receipt and test research
of materials
A Consumers
Production, assembly
B inspection
C Distribution
D Tests of processes, machines, methods
INPUTS PROCESSES OUTPUTS
Feedback
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Learning
 The foundation for improvement …
Understanding why changes are successful
through feedback between practices and
results, which leads to new goals and
approaches
 Learning cycle:
 Planning
 Execution of plans
 Assessment of progress
 Revision of plans based on assessment findings

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TQ Practices
 Strategic planning and design of
organizational and work systems
 Customer engagement and knowledge
acquisition
 Workforce management
 Process management
 Information and knowledge management
 Leadership

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TQ Techniques
 Statistical methods
 Visual aids for problem solving, such as
flowcharts
 Techniques specific to quality assurance
activities, such as control charts, measurement
systems analysis, reliability models, and so on.

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Competitive Advantage
 Is driven by customer wants and needs
 Makes significant contribution to business
success
 Matches organization’s unique resources with
opportunities
 Is durable and lasting
 Provides basis for further improvement
 Provides direction and motivation
Quality supports each of these characteristics
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Quality and Profitability
Improved quality Improved quality
of design of conformance

Higher perceived Higher Lower

value prices manufacturing and
service costs
Increased market Increased
share revenues

Higher profitability
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Key Idea
Considerable evidence exists that
quality initiatives positively impact
bottom-line results.

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Quality and Business Results
Studies
 General Accounting Office study of Baldrige
Award applicants
 Hendricks and Singhal study of quality award
winners
 Performance results of Baldrige Award
recipients

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Key Idea
An organization that is committed to total
quality must apply it at three levels: the
organizational level, the process level, and
the performer/job level.

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Three Levels of Quality
 Organizational level: meeting external
customer requirements
 Process level: linking external and
internal customer requirements
 Performer/job level: meeting internal
customer requirements

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Quality and Personal Values
 Personal initiative has a positive impact
on business success
 Quality-focused individuals often exceed
customer expectations
 Quality begins with personal attitudes
 Attitudes can be changed through
awareness and effort (e.g., personal
quality checklists)

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Key Idea
Unless quality is internalized at the
personal level, it will never become
rooted in the culture of an organization.
Thus, quality must begin at a personal
level (and that means you!).

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Group discussion
Choose two of this entity and describe how they define
quality in their organisation and how it is controlled:
a. Large bank
b. Hospital
c. University academic department
d. University nonacademic department
e. Large department store
f. Primary school
g. Manufacturing facility
h. Large supermarket

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