Total Quality Management: Key Concepts and Case Studies

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Chapter 1

Total Quality Management

An Overview

Abstract

Before the industrial revolution, quality management was part and parcel of an individual’s activities of designing, producing, and selling to the buyers. In the 19th and 20th centuries, as a principle of scientific management, the incentive schemes were introduced to boost production, which indirectly resulted in poor quality. The new concepts and practices in quality management, which had enabled the industries all over the world to transform the global economy are detailed in this book, while this chapter gives an introduction and illustrates the significance of this quality concept.

Keywords

Quality definitions; Quality quotes; Fitness for use; Total quality management; Scale of quality; Quality of design vs. quality of conformance; Five approaches to quality; PDCA cycle; Deming wheel; OPDCA; Baconian method; Empiricism; Kaizen; Manufacturing system; Quality trilogy; KISS principle; DFSS; SDLC; cGMPs; 2nd World Quality Day

Chapter Outline

1.1 What Is Quality?

1.2 Quality Definitions

1.3 Quotes on Quality

1.4 The Scale of Quality

1.5 The Paradigm of TQM

1.6 How can Effective TQM Change the Situation?

1.7 Quality of Design Versus Quality of Conformance

1.8 Changing Criteria of Quality

1.9 The Five Approaches to Quality

1.10 PDCA Cycle

1.11 When to Use the PDCA Cycle

1.12 Variations of PDCA Terminology

1.13 Deming’s Fourteen Points to Improve Quality

1.14 Deming System of Profound Knowledge

1.15 Juran Quality Trilogy

1.16 Conclusion

Further Reading

Abbreviations

DMAIC define, measure, analyze, improve, and control

DMADV define, measure, analyze, design, verify

IDOV identify, design, optimize, and validate

DCCDI define, customer, concept, design, and implement

DMEDI define, measure, explore, develop, and implement

KISS Principle keep it simple statistically

DFSS design for six sigma

SDLC software development life cycle

cGMPs current good manufacturing practices

1.1 What Is Quality?

Quality indicates the capability of all components of an entity to satisfy the stated and implied needs, that a quality item will perform satisfactorily in service, and is suitable for its intended purpose. Quality is referred to as fitness for use, fitness for purpose, customer satisfaction, conformance to the requirements, or has a pragmatic interpretation as the non-inferiority or superiority of something. In any case, to achieve satisfactory quality, we must be concerned with all three stages of the product or service cycle which include:

● The definition of needs

● The product design and conformance

● The product support throughout its lifetime

Total quality management (TQM) consists of organization-wide efforts and an integrated system of principles, methods, and best practices to install and make a permanent climate in which an organization continuously improves its ability to deliver high-quality products and services to customers.

1.2 Quality Definitions

There have been several definitions of quality as given by various quality organizations, as well as quality gurus. Nevertheless, all these definitions focus on the efforts put in by organizations to fulfill customer requirements as stated above.

1. TQM is a management philosophy and company practices that aim to harness the human and material resources of an organization in the most effective way to achieve the objectives of the organization.

–British Standards Institution Standard BS 7850-1:1992

2. TQM is a philosophy for managing an organization in a way which enables it to meet stakeholder needs and expectations efficiently and effectively, without compromising ethical values.

–The Chartered Quality Institute

3. TQM is a term first used to describe a management approach to quality improvement. Since then, TQM has taken on many meanings. Simply put, it is a management approach to long-term success through customer satisfaction. TQM is based on all members of an organization participating in improving processes, products, services, and the culture in which they work.

–The American Society for Quality

4. TQM refers to management methods used to enhance quality and productivity in organizations, particularly businesses. TQM is a comprehensive system approach that works horizontally across an organization, involving all departments and employees and extending backward and forward to include both suppliers and clients/customers. It provides a framework for implementing effective quality and productivity initiatives that can increase the profitability and competitiveness of organizations.

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5. Quality is the fitness for the purpose or use. (Fitness as defined by the customer.)

–Dr. J.M. Juran in 1988

6. Quality means getting everyone to do what he has agreed to do and do it right the first time. Quality is conformance to specifications.

–Philip Crosby

7. Quality is the degree to which a set of inherent characteristics fulfills requirements.

–ISO 9000

8. Quality is an effective system of integrating quality improvement efforts of various groups of the organization so as to provide products/services at a level which allow customer satisfaction.

–A.V. Feigenbaum

9. TQM is a way of managing to improve the effectiveness, flexibility, and competitiveness of a business.

–Prof. John Oakland

10. TQM is a management approach for an organization, centered on quality, based on the participation of all its members and aiming at long-term success through customer satisfaction, and benefits to all members of the organization and to society. One major aim is to reduce variation from every process so that greater consistency of effort is obtained.

–Royse, D., Thyer, B., Padgett D., and Logan T., 2006

11. TQM is the total approach in every aspect of management.

–Bill Creech

12. TQM is an evolving system of practices, tools, and training methods for managing companies to provide customer satisfaction in a rapidly changing world.

–Alan Graham and David Walden

13. Quality is synonym to characteristic, trait, goodness, or excellence.

–Roget’s Thesaurus

14. Quality in a product or service is not what the supplier puts in. It is what the customer gets out and is willing to pay for.

–Peter Drucker

15. Quality means products and services meet or exceed customers’ expectations.

16. Quality is conformance to requirements or specifications or standards.

–Crosby

17. Quality of a product includes a peculiar and essential character or feature. It may be noted here that the character applies to a peculiar and distinguishing quality of a thing or class, whereas the property implies a characteristic that belongs to a thing, essential nature and may be used to describe a type, carry a certain degree of excellence.

–Webster’s Collegiate Dictionary

18. Quality is the totality of features and characteristics of an entity, or a product or service that bear in its ability to satisfy stated or implied needs. The implied needs are usually very vague, indicated, or not indicated at all. Nonetheless they are expected by the customer sometimes more than the standard.

–ISO 8402-1994

19. Quality is the management philosophy and company practices that aim to harness the human and material resources of an organization in the most effective way to achieve its objectives. The objective of an organization may be customer satisfaction, growth, profit, and market position.

–BS 5750

20. TQM is the application of quantitative methods of human resources to improve the materials and services, supplies to an organization; all the processes within an organization and the degrees to which the needs of the customer are at present and in future.

–U.S. Department of Defense

21. TQM is both a philosophy and a set of guiding principles that represent the foundation of a continuously improving organization.

22. TQM is an approach for effective management of an enterprise through focus on its people and performance, safety, proper packaging, timely delivery, efficient technical service, and incorporating effective customer feedback.

23. TQM is a business philosophy founded on customer satisfaction.

24. Quality means productivity, competitive cost, timely delivery, and total customer satisfaction.

25. Product quality is decided by the customer needs, conforming to specifications, assured performance, safety, proper packaging, timely delivery, efficient technical service, and incorporating effective customer feedback.

26. TQM is an integrated organizational approach in delighting both external and internal customers by meeting their expectations on a continuous basis through everyone involved with the organization working on continuous improvement in all products, services, and procedures, along with proper problem-solving methodology.

1.3 Quotes on Quality

Apart from the above definitions, we can also cite some quotes from Mahatma Gandhi et al.

1. It is the quality of our work that pleases the God and not the quantity.

–Mahatma Gandhi

2. I have offended God and mankind because my work did not reach the quality it should have.

–Leonardo Da Vinci

3. 20th century was a century of manufacturing and 21st century is the century of Quality.

–J.M. Juran

4. Quality is everybody’s responsibility.

–Edward Deming

5. Quality is never an accident. It is always the result of intelligent effort.

–John Ruskin

6. When it is obvious that the goal cannot be reached, do not adjust the goal, adjust the action steps.

–Confucius

7. No matter how many goals you have achieved, you must set your eyes on a higher one.

–Jessica Savich

8. Problems are not stop signs, they are guidelines.

–Robert Schuller

9. Good management consists in showing average people how to do the work of superior people.

–John D Rockfeller

10. The new one is just an old thing that was forgotten.

–A Russian proverb

1.4 The Scale of Quality

Few companies are able to spell out their quality levels to precise detail. The general terms of reference to the quality manager are to achieve the customer satisfaction economically, rather than costly over-perfection. Fig. 1.1 below illustrates the different scales of quality by attributes.

Fig. 1.1 Scale of quality.

1.5 The Paradigm of TQM

In their definition of TQM, the International Organization for Standardization (ISO) has specified the three paradigms of TQM to be composed of:

Total: Organization wide

Quality: With its usual definitions and all its complexities

Management: The system of managing with steps like Plan, Organize, Control, Lead, Staff, provisioning, etc.

We can elaborate ISO’s above definition indicating that the following are involved in TQM:

Total

1. All functions

● Design

● Production

● Marketing

● Purchase

● Maintenance

● Quality Control

● HR

2. All levels

● Chairman and Managing Director

● General Manager

● Supervisor

● Operator

3. All persons having a stake

● Factory personnel

● Corporate office

● Shareholders

● Suppliers

Quality

1. Customer satisfaction

2. Customer driven

3. Functional requirement of the product

4. Product specifications

5. Process parameters

Management

1. Effective direction, monitoring, and control

2. Continuous improvement

3. Effective utilization of resourses

4. Executive commitment

5. Well-planned and effective decision-making

6. Employee empowerment

The TQM Company must think Quality, act Quality, and speak Quality to achieve Quality.

1.6 How can Effective TQM Change the Situation?

TQM means organized change management effort.

1.7 Quality of Design Versus Quality of Conformance

There are two major aspects of quality: Quality of design and quality of conformance. Quality of design as defined by the Business Dictionary, is the level of effectiveness of the design process in determining a product’s operational requirements and their incorporation into design requirements. This involves the variations of a product or service in grades or levels of quality, and includes the types of materials used in construction, tolerance in manufacturing, reliability, etc. Quality of conformance is also defined by the Business Dictionary as the level of the effectiveness of the design and production functions in conforming to the product manufacturing requirements and process specifications while meeting process control limits, product tolerances and production targets.

Quality of conformance signifies how well the product conforms to the specifications and tolerances required by the design and is influenced by the choices of manufacturing processes, training and supervision of the workforce, the type of quality-assurance system used, as well as the motivation of the workforce to achieve quality.

1.8 Changing Criteria of Quality

Changing Criteria of Quality

1.9 The Five Approaches to Quality

Harvard professor David Garvin, in his book, Managing Quality, summarized five principal approaches to define quality.

1. Transcendent

● Those who hold the transcendental view would say I can’t define it, but I know it when I see it.

● Advertisers are fond of promoting products in these