TOTAL QUALITY MANAGEMENT MANUAL

CAM 201: TOTAL QUALITY MANAGEMENT



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MODULE TITLE: CAM 201 TOTAL QUALITY MANAGEMEN Total quality management module introduce student to a very important philosophy of how to

managed in an organization so that organizations can effectively and efficiently manage the

quality of product and services so that organization can as well remain competitive. Students

must understand the importance of quality to business profitability. Having understood the basics

of quality management, they will be introduced to various concepts of quality, the importance of

customer in relation to quality as well as the role of quality leaders. The module will also

highlight the importance of employee involvement and service quality. Lastly students will be

introduced to the gurus who have greatly contributed to the growth of this philosophy.

Everyone had had an experience with poor quality. These experiences might involve an airline

that has lost a passengers luggage, a dry cleaner that has left clothes wrinkled or stained,

purchased product that is damaged or broken, or a pizza delivery service that is often late or

delivers the wrong order. The experience of poor quality normally happens when employees of

the company either are not empowered to correct quality inadequacies or do not seem willing to

do so.

The consequences of such an attitude are lost customers and opportunities for competitors to take

advantage of the market need.

Successful companies understand the powerful impact customer-defined quality can have on

business. For this reason many competitive firms continually increase their quality standards.

Unit learning outcomes By the end of the unit the students should be able to

Define Total Quality Management and discuss its characteristics

Clarify the cost of quality

Explain the importance of employees involvement

Discuss the role quality gurus


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TABLE OF CONTENTS

LECTURE 1:INTRODUCTION TO QUALITY MANAGEMENT ................................ 3

INTRODUCTION .................................................................................................................. 3

VIEWS ABOUTQUALITY................4

DIMENSIONS OFQUALITY.6

LECTURE 2 TOTAL QUALITY MANAGEMENT ....................................................... 10

DIFFERNCE BETWEEN TQM AND TRADITIONAL MANGEMENT......14

COST OF QUALITY .15

LECTURE3: CUSTOMER QUALITY19 MEANING OF CUSTOMER...19

CUSTOMER FEEDBACK...21

SERVICE QUALITY....21

LECTURE 4: CONTINOUS PROCESS IMPROVEMENT..26

MEANING OF CONTINOUS PROCESS IMPROVEMENT.26

HOW TO MAKE IMPROVEMT......27

KAIZENPHILOSOPY..30

LECTURE 5: LEADERSHIP AND TOTAL QUALITY MANAGEMENT.....33

INTRODUCTION AND QUALITIES OF QUALITY LEADERS..32

MISSION AND QUALITY POLICY...36

EMPLOYEE INVOLVEMENT39

LECTURE 6: PROPONENTS OF TOTAL QUALITY MANAGEMENT...41

CONTRIBUTIONS OF DR EDWARD DEMING........43

CONTRIBUTIONS OF DR JOSEPH JURAN......46

KORU ISHIKAWA..50


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LECTURE 1: INTRODUCTION TO QUALITY MANAGEMENT

1.1 Introduction

Welcome to the firs lecture on introduction to quality management. This lecture covers the

definition of quality the determinants of quality, features of quality and the dimensions of quality

and the quality hierarchy

1.2 Learning outcome

After completing the topic, you should be able to

Illustrate how Total Quality Management contributes to achievement of organizational

goals

Explain the benefits of Total Quality management

Discuss Total quality management as a process

1.3 Lecture outline

Study unit 1.3.1 Quality management

Study unit1.3.2 Different views about quality

Study unit 1.3.3 Dimensions about quality

1.3.1 QUALITY MANAGEMENT

TQM is an enhancement to the traditional way of doing business. It is the art of managing the

whole to achieve excellence. It is defined both a philosophy and a set of guiding principles that

represent the foundation of a continuously improving organization. It is the application of

quantitative methods and human resources to improve all the processes within an organization

and exceed customer needs now and in the future. It integrates fundamental management

techniques, existing improvement efforts, and technical tools under a disciplined approach.

The business environment has become very competitive and therefore the survival of most

organization depends

High quality products

Customer satisfaction

Worldwide completion demand the following to be emphasized on

Understanding customer wants


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Provide products of high quality

Keep up with the pace of change

Predict customer wants

This requires management of all activities of the organization in an effective and efficient way

the definition of quality depends on the role of the people defining it. Most consumers have a

difficult time defining quality, but they know it when they see it.

Think about how difficult it may be to define quality for products such as airline services, child

day-care facilities, college classes,

Today, there is no single universal definition of quality. Some people view quality as

performance to standards. Others view it as meeting the customers needs or satisfying the

customer.

Fitness for use This is a 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.

Support services

Quality defined in terms of the support provided after the product or service is purchased.

Conformance to specifications Fitness for purpose Customer satisfaction

Quality = Performance x Expectations

1.3.2 DIFFERENT VIEW ABOUT QUALITY Customers view (more subjective)

the quality of the design (look, feel, function)

product does whats intended and lasts

Producers view

conformance to requirements (Crosby)


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costs of quality (prevention, scrap, warranty)

increasing conformance raises profits

Governments view

products should be safe

not harmful to environment

Determinants of quality

Manufacturing quality supply chain

Tangible quality products starts at conception and continues as the product moves from design

to production packaging , transportation to outlets purchase and use by final consumers . Abreak

in the link of chain affects the quality of the final product

Development and design

The first point to consider quality is at the point at which the product is conceived and designed.

It is difficult to rectify a poorly conceived product at the production stage

Design determines the products reliability, durability and how the product is offered

Purchase of law materials

Raw materials must be according to specification and if not it will impact the quality of the final

product

Manufacturing

Employees at the work floor must be conscious about quality of the in a product. If a defect is

detected, an employee has the responsibility of to stop the production line until the cause of the

defect is detected

Finished products

Quality must include the packaging, shipping and if necessary the installation of products

Service quality chain

This chain exist in services and its often shorter because the companys personnel deal directly

with clients than in the case of manufacturing

Communication


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Poor communication between concerned parties in an operation can result in perceived poor

quality.

1.3.3 DIMENSIONS OF QUALITY Dimension 1: Performance Does the product or service do what it is supposed to do, within its defined tolerances?

Performance is often a source of contention between customers and suppliers, particularly when

deliverables are not adequately defined within specifications.

The performance of a product often influences profitability or reputation of the end-user. As

such, many contracts or specifications include damages related to inadequate performance.

Dimension 2: Features Does the product or services possess all of the features specified, or required for its intended

purpose?

While this dimension may seem obvious, performance specifications rarely define the features

required in a product. Thus, it s important that suppliers designing product or services from

performance specifications are familiar with its intended uses, and maintain close relationships

with the end-users.

Dimension 3: Reliability Will the product consistently perform within specifications?

Reliability may be closely related to performance. For instance, a product specification may

define parameters for up-time, or acceptable failure rates.

Reliability is a major contributor to brand or company image, and is considered a fundamental

dimension of quality by most end-users.

Dimension 4: Conformance

Does the product or service conform to the specification?


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If it s developed based on a performance specification, does it perform as specified? If it s

developed based on a design specification, does it possess all of the features defined?

Dimension 5: Durability How long will the product perform or last, and under what conditions?

Durability is closely related to warranty. Requirements for product durability are often included

within procurement contracts and specifications.

Dimension 6: Serviceability Is the product relatively easy to maintain and repair?

As end users become more focused on Total Cost of Ownership than simple procurement costs,

serviceability (as well as reliability) is becoming an increasingly important dimension of quality

and criteria for product selection.

Dimension 7: Aesthetics

The way a product looks is important to end-users. The aesthetic properties of a product

contribute to a companys or brands identity. Faults or defects in a product that diminish its

aesthetic properties, even those that do not reduce or alter other dimensions of quality, are often

cause for rejection.

Dimension 8: Perception Perception is reality. The product or service may possess adequate or even superior dimensions

of quality, but still fall victim to negative customer or public perceptions.

As an example, a high quality product may get the reputation for being low quality based on poor

service by installation or field technicians. If the product is not installed or maintained properly,

and fails as a result, the failure is often associated with the products quality rather than the

quality of the service it receive

Quality Hierarchy

Organizations have been using various ways over a time in assessing the quality of their

products and services. The figure below clearly shows how organizations have been progressing

in assessing quality


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Figure 1

Incorporating QA and QC Activities into

Activities aimed at satisfying the customers

Prevention

Actions to ensure company products conforms to

Organizational requirements

Operational techniques to make inspection

More efficient and reduce cost of quality

Detection

Inspection of products

QA- QUALITY ASSURANCE

QC- QUALITY CONTROL

Features of quality

Quality is defined by the customer

Quality is measure of achievement of customer satisfaction

Quality is fulfilling customers requirements and needs

Quality is keeping ones word

Quality is ensuring there are no defects in products and services

Quality is ensuring fitness for use

Quality is the image of the company and customer confidence of the organization

Quality is useful to the society

TQM

INSPECTION

QUALITY CONTROL

QUALITY ASSURANCE


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Summary In this lesson we have learnt that:

Quality is important for organizations to succeed

The various definitions of quality and the determinants of quality

The dimensions of quality and the quality hierarchy

Suggestion for Further Reading The student can read further on areas such as quality management in orgnizations

Activity

What is the importance of quality management?

As a quality expert in an organization, highlight the characteristics of quality

Define quality and explain the characteristics of quality

Explain the various dimensions of quality


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LECTURE TWO: TOTAL QUALITY MANAGEMENT (TQM)

2.1 Introduction

Welcome to the second lecture on Total quality management. This lecture covers the definition

of Total quality management. It tries to illustrate the difference between Total Quality

Management and traditional management in order for the student to not only gets a clear

understanding of the concept of quality management but also understand the difference. Lastly

the issue of cost of quality is introduced



Define quality management

Explain the difference between TQM and traditional management

Explain the meaning of cost of quality

2.3 .Lecture Outline Study unit 2.3.1 Meaning of total quality management

Study unit 2.3.2 Difference between TQM and traditional Management

Study unit 2.3.3 Meaning of Cost of quality

History of TQM

The concept of quality has existed for many years, though its meaning has changed and evolved

over time. In the early twentieth century, quality management meant inspecting products to

ensure that they met specifications. In the 1940s, during World War II, quality became more

statistical in nature. Statistical sampling techniques were used to evaluate quality, and quality

control charts were used to monitor the production process. In the 1960s, with the help of so-

called quality gurus, the concept took on a broader meaning. Quality began to be viewed as

something that encompassed the entire organization, not only the production process. Since all

functions were responsible for product quality and all shared the costs of poor quality, quality


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was seen as a concept that affected the entire organization.

The meaning of quality for businesses changed dramatically in the late 1970s. Before then

quality was still viewed as something that needed to be inspected and corrected. However, in the

1970s and 1980s many U.S. industries lost market share to foreign competition. In the auto

industry, manufacturers such as Toyota and Honda became major players. In the consumer goods

market, companies such as Toshiba and Sony led the way. These foreign competitors were

producing lower-priced products with considerably higher quality.

To survive, companies had to make major changes in their quality programs. Many companies

hired consultants and instituted quality training programs for their employees. A new concept of

quality was emerging. One result is that quality began to have a strategic meaning. Today,

successful companies understand that quality provides a competitive advantage. They put the

customer first and define quality as meeting or exceeding customer expectations.

Competition based on quality has grown been growing since the 70s in importance and has

generated tremendous interest,. Companies in every line of business are now focusing on

improving quality in order to be more competitive. In many industries quality excellence has

become a standard for doing business. In this competitive environment companies that do not

meet this standard simply will not survive.

The term used for todays new concept of quality is total quality management or TQM. The old

concept is reactive, designed to correct quality problems after they occur. TQM which is the new

concept is proactive, designed to build quality into the product and process design.

2.3.1 Definition of total quality management

Understanding and identifying source of variations in products and services

Philosophy and set of principles an organization uses to enable everyone in the organization to

continuously improve their abilities to meet and exceed customer satisfaction

Total Quality Management is making quality a priority means putting customer needs first. It

means meeting and exceeding customer expectations by involving everyone in the organization

through an integrated effort. Total quality management (TQM) is an integrated organizational

effort designed to improve quality at every level.

Total made of o whole

QualityDegree of excellence a product or service provide


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ManagementAct or manner of planning organizing directing and controlling.

Therefore TQM is art of managing whole to achieve excellence

Basic concepts of TQM

There are various concepts which brings to perspective what TQM is all about Total quality management involves committed and involved management to provide long-

term top-bottom organizational support.

Total quality management focuses on the customer, both internally and externally.

It involves effective involvement and utilization of the entire work force.

Total quality management emphasizes on continuous improvement of the business and

production process.

TQM recognizes the importance of treating suppliers as partners.

TQMs success emphasizes on establishing performance measures for the processes.

Characteristics of TQM Total quality management is customer oriented

Total quality management success demands leadership of top management

Establishment and leadership of the system lies with management

Total quality management is a strategy for continuously improving performance

It emphasizes on improving the quality of products and services

Principles of TQM

1. Constancy of purpose: short range and long range objectives aligned

2. Identify the customers Customer orientation

3. Identification of internal and external customers

4. Continuous improvement

5. Workflow as customer transactions

6. Empower front-line worker as leader

7. Quality is everybodys business


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Obstacles associated with TQM Implementation?

Lack of management commitment

Inability to change organizational culture

Improper planning

Lack of continuous training and education

Incompatible organizational structure and isolated individuals and departments

Ineffective measurement techniques and lack of access to data and results.

Paying inadequate attention to internal and external customers.

Benefits of TQM

Help in focusing on market needs

It facilitates to inspire top quality performer

TQM channels procedure necessary to achieve quality performance

TQM helps remove non-productive activities and wastes

Gears organizations understand competition and develop effective strategy

Help develop good procedures for communication

Helps to review the process needed to develop the strategy of a never ending

improvement

2.3.2 Difference between TQM and Traditional management The table below shows the difference between total quality management and traditional

management

Table 1

TQM

Stresses on customers Puts quality first Quality is composed of multidimensional attributes Economy of time and scope is pursued Manufacturing aim is to creating value

Traditional management

Stresses on other resources

Puts growth on sales and profits first

Quality is conformance to specifications

Economy of scale is desirable

Producing as much as possible


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Creates connection between customers managers and workers Emphasizes on flexible multi skilled workers TQM is Process oriented Culture of networking among functions Advocates flatter organizational structure

Workers to work and managers to manage

Strong division of labor

Result oriented

Proposed hierarchical structure of organization

Favors many layers of authority

2.3.3 QUALITY COST

Quality Costs are defined as those costs associated with the non-achievement of productor

service quality as defined by the requirements established by the organization and itscontracts

with customers and society. In simple terms cost of quality can be simply be stated as the cost of

poor quality products.

Primary categories of Quality cost?

i. Preventive cost category Prevention costs are all costs incurred in the process of preventing poor quality from occurring.

They include quality planning costs, such as the costs of developing and implementing a quality

plan.

ii. Appraisal cost category Appraisal costs are incurred in the process of uncovering defects. They include the cost of

quality inspections, product testing, and performing audits to make sure that quality standards are

being met.

iii. Internal failure cost category Internal failure costs are associated with discovering poor product quality before the product

reaches the customer site. One type of internal failure cost is rework, which is the cost of

correcting the defective item.


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iv. External failure cost category External failure costs are associated with quality problems that occur at the customer site. These

costs can be particularly damaging because customer faith and loyalty can be difficult to regain.

They include everything from customer complaints, product returns, and repairs, to warranty

claims,

Companies that consider quality important invest heavily in prevention and appraisal costs in

order to prevent internal and external failure costs. The earlier defects are found, the less costly

they are to correct. For example, detecting and correcting defects during product design and

product production is considerably less expensive than when the defects are found at the

customer site.

Sub-elements of Preventive cost category

Marketing/Customer/User

ii. Product/Service/Design development

iii. Purchasing

IV. Operations/ v. Quality Administration

VI. Other Prevention Costs

Sub-elements of Appraisal cost category

Purchasing appraisal cost

Operations appraisal cost

External appraisal cost

Review of test and application data

Miscellaneous quality evaluations

Sub-elements of internal failure cost category

Product or Service Design costs (Internal)

Purchasing failure costs

Operations failure costs

Sub-elements of External failure cost category

Complaint investigations of customer or user service


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Returned goods

Why measure costs Cots are measured in order to highlights to employees importance of quality to business

profitability

We measure costs in order to form a basis for decision making

To identify areas needing attention

In order to measure the effects of the actions taken by the top management

For budgeting purposes

Organizations have a critical role to play in ensuring that TQM to be successful in relations to

cost of quality. They therefore have to perform the following roles

Initiate quality cost programme

Identify and define quality cost item

Design a system for collecting quality data

Establish procedures for gathering quality cost

Link quality cost with accounting systems

Analyze and identify high cost areas requiring improvement

Develop corrective action programmes

Implement modifications

Review and rectify


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TQM as a system The figure below tries to explain how TQM is regarded as a system. As a system TQM has

objectives which are total quality management. The principles of TQM is customer focus,

continuous improvement

Figure 2 TQM as a system

TQM AS ASYSTEM

Objective

Principles

Elements

TOTAL QUALITY MANAGEMENT

CUSTOMER FOCUS

Leadership Education and Training, Suppor tive structure, Communications, Reward and recognition,

Measurement techniques

PROCESS IMPROVEMENT

TOTAL INVOLVEMENT


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Summary

In this lesson we have learnt that

Total quality management is how organizations manage its quality aspect to satisfy

customes

There is adifference between TOM and traditional management

Its important for organizations to measure cost of quality

Further reading

The importance of quality training

Activity

Clearly explain what you understand by total quality management

What are the obstacles that you are likely to experience in your organization while

implementing total quality management

Discuss the importance of total quality management

Differentiate between traditional management and total quality management

Explain what you understand of TQM as a process


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LECTURE THREE. CUSTOMER SATISFACTION

3.1 Introduction

Welcome to the third lecture on customer and quality. This lecture covers the definition of

customers. It illustrate the importance customer feedback in enhancing quality and lastly if

brings to focus service quality to show students that quality is not only in physical products but

in services too

3.2 Learning outcome After completing the topic, you should be able to

Explain the importance of customer in relations to quality

Discuss the importance of feedback in relations to quality

Illustrate the customers perception of quality

3.3 Lecture Outline

Study unit3.3.1 Total quality management and customers

Study unit 3.3.2 Customers feedback

Study unit 3.3.3 Service Quality

3.3.1 TOTAL QUALITY MANAGEMENT AND CUSTOMERS

Customer is the most important asset of any organization. Success of organizations depends on

how many customers it has and how often they buy.

To increase in number customers must be satisfied manufacturing and service industries are

using satisfied customers as a sign organizational quality. Organizations need to understand the

customers need and expectations in order t win new and keep existing customers

Organizations need to continually examine their quality systems to see that they responsive to the

ever changing customers needs and requirements

Successful TQM programs begin by defining quality from the customers perspective

TQMs Customer Approach

The customer defines quality.

The customer is always right.


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The customer always comes first.

The customer is king.

quality begins and ends with the customer

Characteristics of customer satisfaction

1. It is far from simple

2. It is not an objective statistic, but more of feeling and attitude.

3. Therefore like people's opinion and feeling, it is subjective by nature.

4. Because of this subjective nature, it is difficult to measure.

5. The measurement of customer satisfaction is not precise.

6. The customer satisfaction should not be viewed in vacuum, i.e., it should be compared

with the level of satisfaction they have with competitor's product are service.

Types of customers 1. Internal customers - each of them receives a product or service and in exchange, providers a

product or service.

2. External customers - one who uses the product or service, the one who purchase the product,

or the who influences the sale of the product. One basic concept of TQM is focus on

customers, both internal and external.

Customer perception of quality In an organization there is no acceptable quality level because the customer's needs, values and

expectations are constantly changing and becoming more demanding. An American Society for

Quality (ASQ) survey reveals the following end-user perception of quality

1. PerformanceThis involves fitness for use. Product or service must be ready for use at the

time of sell

2. Features-identifiable features or attributes of a product or service are psychological, time

oriented contractual , ethical and technological

3. Service- customer service gives customers and added value. This is intangible made up of


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many small things geared to changing the customers perception. Organizations emphasizing

on quality never stop and looking for ways of serving their customers better

4. WarrantyRepresents the organizations public promise of quality product backed up by

guarantee of customer satisfaction

5. Price- Todays customers are willing to pay more to obtain value. Customers compare

products of competing firms to determine greatest value providers

6. Reputation.-At times we rate organizations by our overall experience with them.

Today customers are ready to pay a higher price to obtain value. Therefore it becomes

increasingly important for an organization to identify, verify, and update each customers

perception of value against those of its competitors

3.3.2 CUSTOMER FEEDBACK Soliciting and monitoring customer feedback is very important for organizations to achieve their

objectives.

Customers continuously change, they change their mind,, their expectations and their suppliers

Customer feedback is an on-going probing of the customers mind

Importance of customer feedback

i. Discover customers dissatisfaction

ii. Discover relative priorities of quality

iii. Compare performance with competition

iv. Identify customers needs

v. Determine opportunities for improvement

Feedback has become important in services as well and they determine new product

development. Effective organizations listen to the voice of the customers even when the

customers are not complaining

Listening to the voice of the customers can be accomplished by various information collecting

tools. They include

Comment card

This is a low cost method of obtaining feedback from customers. This involves comment card

attached to the warranty card and included in the product at time of purchase. The intent is to get


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simple information such as name address age, occupation and what influenced the customer to

make the purchase. There is little incentives for buyers to respond to this and the quality of the

response may not provide a true measure of customer satisfaction

Customer questionnaire

This is a popular tool for obtaining opinions and perceptions about organizations and its

products and services. This method can be costly and time consuming.

Focus Group This is a popular way of obtaining feedback but it can be expensive too. This is important in

gathering information on the customers expectations and requirements. It tries to find out what

the customers are thinking a bout

It involves a group of customers assembled in a meeting room to answer a series of questions.

The carefully structured questions are asked by skilled moderators who have a clear

understanding of information needed

Toll free telephone numbers This is an effective technique of receiving complaint feedback. Organization can respond more

quickly and cheaply to the complaint. Such numbers only reach those who buy particular

products

Customer visits A visit to the customers place of business is another way of gathering information. The

performance of the product needs to be monitored to know how it performing. Senior managers

need to be involved in these visits.

Report card This is also an effective information gathering tool. Its usually sent to each customer on a

quarterly basis data is analyzed to determine areas of improvement

The internet

Some managers monitor discussion taking place in the internet to find out what customers are

saying about their products. Monitoring internet conversation is timely; cost is minimal and can

be a source of creative ideas


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Employee feedback

Employees are untapped source of information. Organizations more often listen to the voice of

the customers ignoring employees.

Employees can offer insights to conditions affecting quality in organizations. They can

brainstorm ideas and come up with solutions to problems identified by customers.

3.3.3 SERVICE QUALITY

Quality management is not only restricted on physical products only but its also found in service

.Service sector is a generic term which covers many industries such as health care, education,

insurance hotels transport etc.

TQM in services can be applied by analysing the unique characteristics of service operations.

Service sector has discovered the benefits of quality management and the application of TQM

principles results to better services and customer satisfaction

A service is any act or performance that one party gives to another that is essentially intangible

and does not result in ownership of anything. Services may be provided to the customer, to the

institution or both

Characteristics of service industries

Service organizations normally sell direct to the customer or user

Service companies have to be prepared to provide the service when the customer needs it

Service industry has to complete the assignment within the period desired by the customer

Services are not storable, transportable and the benefits are available to the customers at the rate

they are created

Many services include delivery of intangible products

Problems of defining service quality

Service industries have less control on factors that affect quality

There is higher level of external uncertainty because services cannot be stored and the

participation of customers in the process

Intangibility of services makes it difficult to set standards and measure them

Good service is an expectation of an individual customer which may be unknown or unstated and

may vary from customer to customer


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Participation of the customer has an impact of quality of service

Service quality is difficulty to measure because it is subjective in nature (based on ones ideas and

opinions)

Health Services (Practical Application)

Health service is spectacular in increasing the lifespan of people. This can be possible by setting

up numerous quality controls on a wide variety of activities

In health services the providers of the services are the hospitals, nursing homes clinics etc while

the buyers are the patients or clients who buy this health service.

Buyers must get quality services for which they are paying for.

Acceptable services include

Diagnosis, medicine, surgery and treatment

Indirect operations include administration, purchasing which affects the cost of services

Quality of performance related to food, housing, safety, security, attitude of employees

How to assess quality of service

Patient satisfaction survey

Hospital quality trend survey

Patient quality service report

Error rate survey

How to Improve Quality in Health Service

Rendering acceptable quality health service to patients at affordable price within reasonable time

Applying zero errors to all patient services

Maintaining continuous error prevention program

Searching for problems and trouble spots and eliminate them

Training employees on medical care, error prevention, delay time, prompt response to

customers needs etc

Training and educating employees on non-medical aspect

Driving out the fear from the minds of employees

Removing barriers to job efficiency and job satisfaction


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Determinants of service quality: 1. Reliability Involves dependability of service and consistency of performance; performing

the right service right the first time; honouring promises; accuracy.

2. Responsiveness Concerns the willingness or readiness of employees to provide service;

timeliness.

3. Competence Means possession of the necessary skills and knowledge required to

Perform the service.

4. Access Involves approachability and ease of contact; waiting time; hours of operation.

5. Courtesy Involves politeness, respect, consideration, and friendliness of contact

Personnel

6. Communication Means keeping customers informed in language they can understand;

listening to customers; adjusting language to different needs of different customers;

explaining the service itself.

7. Credibility Involves trustworthiness, believability and honesty, reputation; personal

characteristics of personnel.

8. Security Is the freedom from danger, risk or doubt; physical safety; financial security;

confidentiality.

9. Understanding Involves making the effort to understand the customers needs; learning

the customers specific requirements; providing individualized attention; recognizing the

regular customer.

10. Tangibles Include the physical evidence of the service; physical facilities; appearance

of employees; physical representation of the service, such as a receipt.


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Summary

In this lesson we have learnt that Customer is the main focus of total quality management

There are various methods of collectingfeedback from customers

TQM is not only avvailable in products only but can also be applied in services.

Suggestion for Further Reading How you can asses quality in educational services

Activity

Explain the meaning of customer and how customers influence quality of products

and services

Explain the determinants of service quality

Explain the tools you will use to collect information

Explain the service quality and why its difficult to measure service quality


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LECTURE FOUR: CONTINOUS PROCESS IMPROVEMENT

4.1 Introduction

Welcome to the fourth lecture on continuous process improvement. This lecture covers the

definition of continuous process improvement. It illustrate the importance of continuous process

improvement in enhancing quality and highlighting the most important philosophy of continuous

improvement initiated by the Japanese termed as Kaizen



Explain the importance of continuous process improvement

Discuss the meaning and importance of Kaizen

4.3 Lecture Outline

Study unit 4.3.1 Meaning of continuous process improvement

Study unit4.3. 2 How to make improvement

Study unit 4.3.3 Kaizen philosophy

4.3.1 CONTINOUS PROCESS IMPROVEMENT

Organizations should continually strive to achieve perfection by continually improving the

business process

Process Improvement is a systematic approach to improve a process. It involves-

i. Documentation

ii. Measurement and

iii. Analysis For the purpose of improving the functioning of the process.

Goals of Process improvement

1. Increase Customer satisfaction.

2. Achieving higher quality

3. Reducing waste

4. Reducing cost

5. Increasing productivity

6. Speeding up the process


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Method of Process Improvement One of the popular methods of process improvement is The Plan-Do-Study-Act Cycle. This also

referred to as either Shewhart Cycle or Deeming wheel. This is the basis for continuous

improvement activities. The method representing the process with a circle underscores its

continuing nature. There are

Four basic steps in the cycle-

Step-1: Plan Begin by studying the current process. Document the process. Then collect data to identify

problems. Next, survey data and develop a plan for improvement. Specify measures of

evaluating the plan.

Step-2: Do Implement the plan on a small scale if possible. Document any changes made during this phase.

Collect data systematically for evaluation.

Step-3: Study Evaluate the data collection during the do phase. Check how closely the results match the

original goals of the plan phase.

Step-4: Act

If the results are successful standardized the new method and communicate the new method to

all people associated with the process. Implement training for the new method. If the results are

unsuccessful revised the plan and repeat the process or cease this project. In replicating

successful results elsewhere in the organization, the cycle is repeated. If the plan is unsuccessful

and we wish to make further modifications repeat this cycle. Employing this sequence of steps

provide a systematic approach to continuous improvement.

How to make improvement

Viewing all workers as process

Making processes effective, efficient and adaptable

Anticipating changing customer needs


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Eliminating wastes and re work

Activities not adding value to be investigated

Elimination of non-conformities

Use benchmark

Being innovative

Incorporating lesson s learned

Ways of improving

Reduce costs

Reduce errors

Meet or exceed expectations Make processes safer Improvement strategies

1. Repair

Short or long term

2. Refinement

3. Renovation

4. Reinvention

Phases of continuous process improvement

Identify opportunity

Analyze the current process

Develop optimal solutions

Implement changes

study the results

Standardize the solutions

Plan for future

There are a number of tools for process improvement. We are going to describe first seven is

known as seven basic quality tools. These are

Check sheets

Flowcharts


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Scatter Diagrams

Histogram

Pareto Analysis

Control Charts Cause and effect Diagram

4.3.2 KAIZEN Kaizen is a Japanese philosophy which encourages small improvement day after day

continuously. It is an on-going never ending improvement process

Kaizen is a Japanese workplace philosophy which focuses on making continuous small

improvements which keep a business at the top of its field. Many well-known Japanese

companies such as Canon and Toyota use kaizen, with a group approach which includes

everyone from CEOs to everyone on the factory floor. This group approach has been adopted

successfully in other regions of the world as well, but Japanese workers have refined it to an art

form.

It has been suggested that kaizen works particularly well because Japan is a collective culture,

and kaizen relies on collective values. People in more individualistic cultures may struggle with

some of the basic principles of kaizen. Kaizen also suggests that everything constantly has room

for refinement and improvement, and this value is contrary to the beliefs of some Westerners.

Principles of Kaizen

There are five underpinning principles to kaizen.

1.) The first is a heavy reliance on teamwork, in which everyone's opinion is valued and

considered.

2.) Workers also have strong personal discipline, and morale in factories must improve under

kaizen.

3.) Workers should also be confident about offering suggestions for improvement, even

when a system appears to be functioning adequately;

4.) kaizen recognizes that there is always room for improvement.


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5.) Finally, the system uses quality circles, groups of workers who meet and work together

to solve problems and come up with innovative changes.

One of the primary goals of kaizen is eliminating waste, considering both the process and the end

results. In addition, it encourages big picture thinking, with employees considering how their

actions impact the whole. It also fosters a culture of learning and experimentation without

judgment and blame, with all workers understanding that their opinions are important and useful

to the overall system.

Types of Wastes

Overproduction: This is one of the worst wastes. Too much is as bad as not enough

Waiting: Having machines and people and other resources standing idle unutilized

Transportation: Excess movement of people materials and products

Processing: Doing additional process to correct the previous process

Inventory: Includes unfinished products work in process and raw materials. These ties up money

space and labour

Motion: Excess motion takes up excess time. The use of natural limited motion is recommended

Quality defects Tis requires additional resources to redo what not done right the first time. This

results to loss customer satisfaction and loss of business

All Kaizen methods have the following in common

Involvement of all workers who execute the process

Focus on improving the performance of work process

Seeks to make incremental improvement

Improvements are intended to be repeated over a time

Kaizen is constant. Unlike many Western workplace improvement systems, it is not a problem

based approach. Workers come up with new ideas and submit them all the time, and quality

circles meet frequently. Any hiccup on the factory floor results in the meeting of a quality circle

to talk about the issue and discuss changes to implement. As a result, Japanese companies are

continuously becoming more efficient and streamlined, allowing them to effectively compete

with other companies which also integrate the kaizen philosophy into their daily practice.


35

Summary In this lesson we have learnt that

Continous process improvement is critical for TQM to suceed

Kaizen is a japannese philosophy which is concerned with continous improvement

Suggestion for Further Reading

Six sigma

Activity Continuous process improvement can be regarded as total quality management. Explain

Explain the fundamental principles of Kaizen

Explain the meaning of continuous process improvement

Discuss the wastes that kaizen intends to eliminate


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LECTURE FIVE: LEADERSHIP AND TQM 5.1 Introduction Welcome to the fifth lecture on leadership and total quality management. This lecture covers

and show you the importance of leadership in ensuring quality .without good leadership

organizations cannot achieve its quality objective .secondly the importance of quality policy and

mission statement are introduced and lastly employee involvements in ensuring that the

organization achieves its quality objective is introduced .



Explain the importance of leadership in relation to total quality management

Discuss the characteristics of quality leaders

Discus the importance of employee involvement

5.3 Lecture Outline

Study unit 5.3.1 Leadership and quality

Study unit 5.3.2 Mission and quality policy

Study unit 5.3.3 Employee involvement

5.3.1 LEADERSRHIP AND QUALITY

Total quality management (TQM) leadership refers to top managers of an organization

responsible for implementing a system to improve customer satisfaction. The total quality

management philosophy starts with company owners and high-ranking managers committed to

getting work done right the first time. Its a process that includes developing a plan to improve

delivery of products or services, and implementing that plan throughout the organization.

Good leadership plays an important role for organizations to achieve quality. A leader

strengthens and inspires followers to accomplish shared goals Leadership is important during the

phase of implementation they must be trained on TQM concept

Managers charged with total quality management leadership put the customer at the centre of a

system so every interaction occurs in a reliable and timely manner. The main concept

communicated throughout the company hinges on meeting customer expectations every time.


37

Meeting these goals might give the company an edge over competitors, eliminate the cost of

correcting mistakes, and increase productivity.

To be effective in total quality management leadership, managers typically write a mission

statement outlining the principles, values, and beliefs of the organization. They ensure the

mission statement is shared and understood by every person employed in the firm. Leaders also

develop strategies for implementing plans to improve customer relations and explain these

techniques to lower-level supervisors.

One factor that determines total quality manager leadership effectiveness centers on the ability to

gain acceptance of these principles from all employees. Senior managers who serve as good role

models for subordinates might see more success in motivating others to embrace a TQM system.

They are responsible for ensuring every employee embraces the concept and commits to change.

Stephen R Covey: The 7 Habits of Highly Successful People

1. Be Proactive: Proactive people think beforehand and are ready to face a situation. Reactive

people react as per the situation and react on whims and emotions. A proactive person can

plan beforehand for an eventuality. If you are well prepared then you can face a situation or

solve a problem more efficiently.

2. Begin with the end in Mind: If you don t know where to go then you will reach nowhere

goes an old saying. Start a task with set goals. Goals are important as they tell you where to

go. They help in focusing your approach as well. 3. Put First Things First: Because of

multitude of tasks and assignments one needs to prioritize. This helps in giving more

attention to more important things at hand.

3. Think win-win: Think about mutual benefits rather than your own benefit alone. Everybody

wants to have an upper hand in life and in business dealings. But this is practically not

possible. So best way is to find is the middle of the road.

4. Seek first to understand, then to be understood: First give other people ample time to

express themselves. This will help on many fronts. The other person gets enough opportunity

to say what he wants to say. You get an opportunity to understand others perspective. You


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get enough time to strategize accordingly.

5. Synergy: The best example of team work can be learnt from a pleasant orchestra or

jugalbandi in Indian classical music. Especially in Indian classical music you will observe

how maestros bury their egos and come out with astounding performances.

6. Sharpen the Saw: Skill building or practice is very important. Nobody is perfect and

perfection is a thing which can never be achieved in ones lifetime. Moreover, it always pays

to practice as much as you can.

Role of TQM Leaders

1. All are responsible for quality improvement especially the senior management & CEOs

2. Senior management must practice Management By Walking Around

3. Ensure that the teams decision is in harmony with the quality statements of the organisation

4. Senior TQM leaders must read TQM literature and attend conferences to be aware of TQM

tools and methods

5. Senior managers must take part in award and recognition ceremonies for celebrating the

quality successes of the organization

6. Coaching others and teaching in TQM seminars

7. Senior managers must liaise with internal, external and suppliers through visits, focus

groups, surveys

8. They must live and communicate TQM.

Characteristics of quality Leaders 1. They give priority attention to internal and external customers and their needs. They

continually evaluate the changing customers requirements

2. They empower rather than control subordinates. They have trust and confidence in the

performance of their subordinates. They provide the resources training and the work

environment to help subordinates do their job

3. They emphasize improvement rather than maintenance leaders use the phrase it isn t

perfect improve it.. They believe that there is always room for improvement even if the

improvement is small


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4. They emphasize prevention on anything that can affect the organization from achieving its

objectives

5. They encourage collaboration rather than competition between functional areas,

departments and work groups

6. They train and coach rather than direct and supervise. Leaders know that it is essential to

develop human resources. They help subordinates learn how to do a better job.

7. They learn from problems. When problems exist its treated as an opportunity to learn.

They ask question such as what caused it and how can we prevent it in future.

8. They continually try to improve communication. They disseminate information about

TQM continually. Communication is the glue that holds TQM together

9. They continually demonstrate their commitment to quality. The let the quality statement be

their decision making guide

10. They choose suppliers on the basis of quality and not price. Leaders know that quality

begins with quality raw materials

11. They establish organizational systems to support quality effort. At the senior management

level the quality council is established and at the first line supervisor level work groups

and project teams are organized to improve the process

12. They encourage and recognize team efforts. They encourage, provide recognition and

reward individual teams

5.3.2 QUALITY POLICY AND MISSION STATAEMENT What is a quality policy?

The Quality Policy is a guide for everyone in the organization as to how they should provide

products and service to the customers. The common characteristics are Quality is first among

equals. Meet the needs of the internal and external customers. Equal or exceed the competition.

Continually improve the quality. Include business and production practices. Utilize the entire

work force.


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What is a mission statement? The mission statement answers the following questions: who we are, who are the customers,

what we do, and how we do it.

What is a vision statement?

The vision statement is a declaration of what an organization should look like five to ten years in

a future. Experience is also employed through utilization of the "Do" step of Deming's Plan-Do-

Study-Act cycle. By actually implementing the proposed improvement on a test or full scale

basis, the firm gains knowledge that it would not obtain through attempting to logically deduce

the results without actually implementing. This is because the success of the project may be

explained by a new paradigm that would appear illogical under the existing paradigm. The

success of the project and the new underlying paradigm would not be discovered without

actually implementing the project.

Organizations must have a quality policy and mission statement

They determine and influence how work is done, how people behave and are treated

Policy is man-made rule of predetermined course of action established to guide performance

Importance of quality policy and mission statement

Build enthusiasm and loyalty of people

Is a standard of evaluating performance

Support mission and principles of organization

Encourages improvement

Promotes teamwork and leadership

Fosters decision making

Helps in customer satisfaction

Factors to consider in formulating quality policy and mission statement

Should be clear, definite and easy to understand

Be well written and documented

Be a result of carefully analysed data


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Focus on quality, continuous improvement and customer satisfaction

Should not be rigid

Should be communicated to all

Quality Council: In order to build quality in the culture, a quality council is established to provide overall

direction. It is the driver for the TQM engine. In a typical organization the quality council is

composed of the chief executive officer(CEO); the senior managers of the functional areas, such

as design, marketing, finance, production, and quality; and a Coordinator or consultant.

Quality council is established to build quality into culture and provide direction

The duties of the quality council: a) To develop the vision, mission and quality statement of the organization, with the input from

all the personnel.

b) To develop strategic long-term plan with goals and annual quality improvement program with

objectives.

c) Create a total education and training plan.

d) Determine and continuously monitor the cost of poor quality.

e) Determine the performance measures of the organization and monitor.

f) Continuously determine those projects that improve and affect external and internal customer

satisfaction.

g) Establish multifunctional project and work group teams and monitor their progress.

h) Establish and revise the recognition and reward system to account for the new way of doing

business.

The typical quality council meeting agenda of a well-established TQM organization:

a) Progress reports on teams

b) Customer satisfaction report

c) Progress on meeting goals


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d) New project teams

e) Recognition dinner

f) Benchmarking report

5.3.3 EMPLOYEE INVOLVEMENT Employee involvement is a vital aspect of total quality management solutions, and also in the

success of any business. The need to both grow and succeed in an increasingly competitive

marketplace has seen the implementation of various quality initiatives in different companies and

organizations.

Problem-solving and process improvements are crucial to the company's quality initiatives, and

demonstrate proactive actions are being taken to prevent problems. Total Quality Management

(TQM) is a continuous process that strives to increase customer satisfaction, lower costs, and

minimize defects and variations in every process of the business. TQM involves a number of

concepts like "Just-In-Time", quality circles, employee involvement, continuous process

improvement, empowerment, and world-class quality. The basic philosophy of TQM is to

involve every employee in the organization along with its suppliers and distributors to improve

product quality and thus enhance customer satisfaction.

One of the important concepts of TQM is employee involvement. This is contrast to

conventional quality assurance management practices, where management takes all decisions

and workers just follow them to accomplish their jobs.

Employee involvement is very important in any TQM initiative, as it is a system wherein

employees are encouraged to use their expertise and knowledge to suggest methods for

improvements in their work areas. These suggestions could relate to improvements in the job, the

product, the work atmosphere or the company as a whole. Many companies have ventured into a

participation-style of management by involving employees in the problem solving and decision

making processes.

The five obstacles that arise when companies try to shift from a traditional management style to a

participative one are listed below:

Resistance to change

Mistrust of the managements motives by the workers

Lack of clear expectations from the workers


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Lack of participative skills among employees

Lack of executive commitment

Benefits Employee Involvement & Empowerment

While both employee involvement and employee empowerment are each distinct practices and

are usually mutually exclusive to one another, the benefits of each can be similar. The main

benefits of employee involvement and empowerment are enhanced morale, more productivity,

healthier co-worker relationships and creative thinking.

1. Improved Morale. Involving employees in decisions and policy changes that directly affect

their jobs while also empowering employees to be more autonomous, greatly improves

company morale at large. When employees are treated as an asset and their input is given

consideration, confidence increases among every team member, and the organization sees

significant gains in different facets such as productivity and loyalty. Improved morale can

also increase employee longevity with the company, as the longer an employee is associated

with the company, the more experienced they become. This makes them mentors to new

employees and therefore indispensable to managerial staff.

2. Increased Productivity. Both employee empowerment in quality management quality

management practices also translate into increased productivity. Employees with an

investment in the best interest of the organization increase their role in the company, and

foster a stronger work ethic. When employees are given independence and expected to be

more self-sufficient, they eventually become more efficient as they learn to navigate their

responsibilities with minimal interference and/or relying less on managerial staff for

direction. This allows managerial staff more time to tend to their own responsibilities other

than giving assignments to subordinates and decreases micromanagement, which minimizes

productivity.

3. Team Cohesion. Employee empowerment fosters better relationships between employees and

with their managers, as employees that are given more independence tend to form better


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working relationships. Each sees the other as mutually benefiting from their working

relationship. In addition, more self-governance in the workplace lessens dependence on

managers and supervisors and redirects that reliance laterally to coworkers.

4. Innovation. Employee empowerment cultivates innovation, as employees that have a stake in

company growth and sustainability will offer more ideas and problem-solving solutions when

obstacles arise. As the employee meets particular challenges or finds improvements in

policies, procedures or products, it will foster growth and more critical and imaginative

thinking. Employees can offer different perspectives thana managers, and be able to offer a

creative solution not otherwise considered by staff

5. Making decisions Employees are better able to make decisions using their expert knowledge

of the process

6. Supporting decisions Employees are more likely to implement and support decisions they

had apart in making

7. Areas of improvement Employees are better able to spot and pinpoint areas of improvement

8. Acceptance of change Employees are able to accept change because they are involved

9. Increased commitment Employees have increased commitment because they are involved

Summary

In this lesson we have learnt that Quality leaders are important for the sucess of TQM

Quality policy and misision stataments are critical instruments for TQM sucess

Employee involvement enhances total quality management

Suggestion for Further Reading Importance of reward and recognition

Activity Explain the important role of quality leaders

Define quality council and the role they play in an organization

Explain the characteristics of quality leaders

Discus why it is important to involve employees in total quality management


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LECTURE SIX: PROPONENTS OF TOTAL QUALITY MANAGEMENT

6.1 Introduction

Welcome to the sixty lecture on proponents of total quality management. This lecture covers

some of the famous proponents of total quality management gurus who have immensely

contributed to the growth of this philosophy apart from these gurus there are many more others

who have contribute to the growth of quality management.



Explain the contribution of quality gurus

Discuss the fourteen principles of Deming route to quality

Highlights the contribution of Koru ishikawa

6.3 Lecture outline Study unit 6.3.1 Edward Demings contribution to quality

Study unit 6.3.2 fourteen principles of Demings route to quality

Study unit 6.3.3 Dr Josephs Juran contribution to quality management

TQM which has been widely used and accepted has not emerged instantly but a continuous effort

by some people. Various people have contributed to the growth of this philosophy.

6.3.1 DR EDWARD DEMING He is considered as the father of Japanese quality revolution. He approached the problem of

quality management from the statistician perspective. His major contribution started in the 1950s

when he was invited by union of Japanese scientists and engineers (JUSE) to Japan

He proposed new thinking stressing on improving quality through statistical quality control

techniques

Though initially ignored in the United States, the influence of Deming in western thinking grew


46

rapidly after 1980s

Cooperation- Dr. Deming based his new business philosophy on an ideal of cooperation. In order

to fulfil its own potential, a company must harness the power of every worker in its employment;

for that reason, the third point bars shoddy workmanship, poor service, and negative attitudes

from the company.

Theory of Profound Knowledge -- In order to promote cooperation, Deming espouses his Theory

of Profound Knowledge. Profound knowledge involves expanded views and an understanding of

the seemingly individual yet truly interdependent elements that compose the larger system, the

company. Deming believed that every worker has nearly unlimited potential if placed in an

environment that adequately supports, educates, and nurtures senses of pride and responsibility;

he stated that the majority--85 per cent of a worker's effectiveness is determined by his

environment and only minimally by his own skill.

A manager seeking to establish such an environment must: Employ an understanding of psychology--of groups and individuals.

Eliminate tools such as production quotas and sloganeering which only alienate workers from

their supervisors and breed divisive competition between the workers themselves.

Form the company into a large team divided into sub-teams all working on different aspects of

the same goal; barriers between departments often give rise conflicting objectives and create

unnecessary competition.

Spread profit to workers as teams, not individuals.

Eliminate fear, envy, anger, and revenge from the workplace.

Employ sensible methods such as rigorous on-the-job training programs.

In the resulting company, workers better understand their jobs--the specific tasks and techniques

as well as their higher value; thus stimulated and empowered, they perform better. The expense

pays for itself

Demings definition of quality is in terms of quality of design. Quality of conformance and

quality of service function

The main focus of Demings philosophy is on planned reduction on variations


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Deming is popularly known for his fourteen principles of quality. His 14 principles

emphasized on the following

1. Top management strong commitment to quality

2. Process design and control through statistical tools

3. Continuous search for and correction of quality problems

4. Pursuing a policy that emphasizes quality rather than cost

5. Removing of barriers to employee participation and teamwork

6. Effective communication between employees and supervisors

7. Elimination of numerical goals and quotas for employees

8. Companywide training and education quality

9. Education and training managers on the use of statistical techniques

10. Importance of quality design and information syste

6.3.2. DEMINGS FOURTEEN PRINCIPLES

1. Constancy of purpose: Create constancy of purpose for continual improvement of products

and service to society, allocating resources to provide for long range needs rather than only

short term profitability, with a plan to become competitive, to stay in business, and to

provide jobs.

2. The new philosophy: Adopt the new philosophy. We are in a new economic age, created in

Japan. We can no longer live with commonly accepted levels of delays, mistakes, defective

materials and defective workmanship. Transformation of Western management style is

necessary to halt the continued decline of business and industry.

3. Cease dependence on mass inspection: Eliminate the need for mass inspection as the way of

life to achieve quality by building quality into the product in the first place. Require

statistical evidence of built in quality in both manufacturing and purchasing functions.

4. End lowest tender contracts: End the practice of awarding business solely on the basis of

price tag. Instead require meaningful measures of quality along with price. Reduce the


48

number of suppliers for the same item by eliminating those that do not qualify with

statistical and other evidence of quality. The aim is to minimize total cost, not merely initial

cost, by minimizing variation. This may be achieved by moving toward a single supplier for

any one item, on a long term relationship of loyalty and trust. Purchasing managers have a

new job, and must learn it.

5. Improve every process: Improve constantly and forever every process for planning,

production, and service. Search continually for problems in order to improve every activity

in the company, to improve quality and productivity, and thus to constantly decrease costs.

Institute innovation and constant improvement of product, service, and process. It is

management's job to work continually on the system (design, incoming materials,

maintenance, improvement of machines, supervision, training, retraining).

6. Institute training on the job: Institute modern methods of training on the job for all,

including management, to make better use of every employee. New skills are required to

keep up with changes in materials, methods, product and service design, machinery,

techniques, and service.

7. Institute leadership: Adopt and institute leadership aimed at helping people do a better job.

The responsibility of managers and supervisors must be changed from sheer numbers to

quality. Improvement of quality will automatically improve productivity. Management

must ensure that immediate action is taken on reports of inherited defects, maintenance

requirements, poor tools, fuzzy operational definitions, and all conditions detrimental to

quality.

8. Drive out fear: Encourage effective two way communication and other means to drive out

fear throughout the organization so that everybody may work effectively and more

productively for the company.

9. Break down barriers: Break down barriers between departments and staff areas. People in

different areas, such as Leasing, Maintenance, Administration, must work in teams to tackle

problems that may be encountered with products or service.

10. Eliminate exhortations: Eliminate the use of slogans, posters and exhortations for the work

force, demanding Zero Defects and new levels of productivity, without providing methods.

Such exhortations only create adversarial relationships; the bulk of the causes of low


49

quality and low productivity belong to the system, and thus lie beyond the power of the

work force.

11. Eliminate arbitrary numerical targets: Eliminate work standards that prescribe quotas for

the work force and numerical goals for people in management. Substitute aids and helpful

leadership in order to achieve continual improvement of quality and productivity.

12. Permit pride of workmanship: Remove the barriers that rob hourly workers, and people in

management, of their right to pride of workmanship. This implies, among other things,

abolition of the annual merit rating (appraisal of performance) and of Management by

Objective. Again, the responsibility of managers, supervisors, foremen must be changed

from sheer numbers to quality.

13. Encourage education: Institute a vigorous program of education, and encourage self-

improvement for everyone. What an organization needs is not just good people; it needs

people that are improving with education. Advances in competitive position will have their

roots in knowledge.

14. Top management commitment and action: Clearly define top management's permanent

commitment to ever improving quality and productivity, and their obligation to implement

all of these principles. Indeed, it is not enough that top management commit themselves for

life to quality and productivity. They must know what it is that they are committed to-that

is, what they must do. Create a structure in top management that will push every day on the

preceding 13 Points, and take action in order to accomplish the transformation. Support is

not enough: action is required

6.3.3 DR JOSEPH JURAN CONTRIBUTION Joseph Jjuran pursued a number of careers in management as an engineer, industrial executive,

government administrator and management consultant

Some of his books include quality control handbook, quality planning and analysis, managerial

breakthrough and Jurans leadership for quality


50

Jurans definition of quality is fitness for use. The fitness can be achieved through quality of

design, quality of conformance, availability and field service

Juran highlighted the managerial responsibility for quality and emphasized that quality is

achieved through people rather than techniques

Juran advocated analysis and synthesis of cost of quality to identify areas of improvement

His approach emphasized on the following

Quality planning

Establishment of formal quality policy

Quality through product design

Quality audit System approach to managing quality through the organization

Dedication to quality at each step in the product development cycle

Quality cost

Quality responsibility on middle management and quality consultant

Juran proposed the following ten steps to quality management

1. Building awareness of the need and opportunity for improvement

2. Set goals for improvement

3. Organize to reach the goal

4. Provide training

5. Carry out projects to solve problems

6. Report progress

7. Give recognition

8. Communicate results

9. Keep the score

10. Maintain momentum by making annual improvement part of the regular system and

process of the company

Jurans Strategies for the 90s

Upper managers on charge

Training for all managers


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Quality improvement at a revolution pace

Participative quality planning

Structured quality planning

Quality goals to be included in strategic business plan

The role of upper managers include Accept training on how to manage for quality

Create and lead a quality council that guides and coordinates the process through which company

meets its quality goals

Personally determine which quality goals should enter business plan

Approve methods of measurement of quality goals

Personally review process against the goals

Participate in recognition ceremony

Approve revision on the reward system

Kaoru Ishikawa Kaoru Ishikawa is best known for the development of quality tools called cause-and-effect

diagrams, also called fishbone or Ishikawa diagrams. These diagrams are used for quality

problem solving, . He was the first quality guru to emphasize the importance of the internal

customer, the next person in the production process. He was also one of the first to stress the

importance of total company quality control, rather than just focusing on products and services.

Dr. Ishikawa believed that everyone in the company needed to be united with a shared vision and

a common goal. He stressed that quality initiatives should be pursued at every level of the

organization and that all employees should be involved. Dr. Ishikawa was a proponent of

implementation of quality circles, which are small teams of employees that volunteer to solve

quality problems.

Cause-and-Effect Diagrams

Cause-and-effect diagrams are charts that identify potential causes for particular quality

problems. They are often called fishbone diagrams because they look like the bones of a fish. A


52

general cause-and-effect diagram is

The head of the fish is the quality problem, such as damaged zippers on a garment or broken

valves on a tire. The diagram is drawn so that the spine of the fish connects the head to the

possible cause of the problem. These causes could be related to the machines, workers,

measurement, suppliers, materials, and many other aspects of the production process. Each of

these possible causes can then have smaller bones that address specific issues that relate to

each cause. For example, a problem with machines could be due to a need for adjustment, old

equipment, or tooling problems. Similarly, a problem with workers could be related to lack of

training, poor supervision, or fatigue.

Cause-and-effect diagrams are problem-solving tools commonly used by quality control teams.

Specific causes of problems can be explored through brainstorming. The development of a

cause-and-effect diagram requires the team to think through all the possible causes of poor

quality.

Figure 3 Cause and effect Diagram

Suppliers workers Machines

Poor quality

Environment Materials processes

Summary

In this lesson we have learnt that

TQM has not emerged intantly but numerous effort and reserach from various scholars.

Cause and effect as a quality tool can be used in enhancing total quality management

Suggestion for Further Reading Other proponents of Total quality mnagement and their contribution


53

Activity

Clearly demonstrate how Edward Deming and Joseph Juran have contributed in quality

management

Explain the cause and effect diagram

Explain the fourteen principles of Deming route to quality

Discuss Jurans proposal for quality management

References Samwel. K. TQM an integrated approach, New Delhi Crest Publishing House

Dale Besterfield, Carol Bersterfield, Glnh Besterfield ,Total Quality Management, New

Delhi New Age International Pvt Ltd, 2004

Aqualino chase Jacobs Operation Management for Competitive Advantage New Delhi Tata

McGraw Hill, 2004

Waller Derrick Operation management, chain supply approach, Italy international Thomson

1999

Smith Steve The quality revolution Jaico publishing house 2002

Greig, York, Adams, Ranney Beyond Total Quality Management, New York Mcgraw

hill,1994

Anand k. kailash, High quality at economic cost, New Delhi, Sage Publications Pvt Ltd, 2003

Documents

TOTAL QUALITY MANAGEMENT MANUAL