1. Chapter 1
Introduction to Quality
THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM 1

2. Definitions of Quality
• Total quality management (TQM) is the
integration of all functions and processes
within an organization in order to achieve
continuous improvement of quality of goods
and services.
• A process is a sequence of activities
that is intended to achieve some result
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THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM

3. Total Quality
• People-focused management system
• Focus on increasing customer satisfaction
and reducing costs
• A systems approach that integrates
organizational functions and the entire
supply chain
• Stresses learning and adaptation to change
• Based on the scientific method
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THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM

4. Principles of Total Quality
• Customer and stakeholder focus
• Participation and teamwork
• Process focus and continuous
improvement
...supported by an integrated organizational
infrastructure, a set of management practices,
and a set of tools and techniques
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THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM

5. Continuous Improvement
• 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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THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM

6. THE CONCEPT OF TQM
The subsystem include all the organizational
functions in the life cycle of a product
Design, Planning, Production, Distribution,
Field service
The management subsystems also require
integration, including
1. strategy with a customer focus
2. The tools of quality
3. Employee involvement
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THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM

7. Strategy With Customer Focus
• “Meeting or exceeding customer
expectations”
• Customers can be...
– Consumers
– External customers
– Internal customers
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THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM

8. Employee involvement
• Employees know their jobs best and
therefore, how to improve them
• Management must develop the systems and
procedures that foster participation and
teamwork
• Empowerment better serves customers, and
creates trust and motivation
• Teamwork and partnerships must exist both
horizontally and vertically
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THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM

9. Key Issues & terminology related
To TQM
• The cost of quality
• A cultural change
• Enabling mechanisms of change
• Implementing TQM
• Management behavior
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THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM

10. Infrastructure, Practices, and
Tools
Infrastructure
Leadership Strategic HRM Process Data and information
Planning mgt. management
Practices Performance Training
appraisal
Tools Trend chart
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THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM

11. TQ Infrastructure
• Customer relationship management
• Leadership and strategic planning
• Human resources management
• Process management
• Data and information management
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THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM

12. ANTECEDENTS OF MODERN
QUALITY MANAGEMENT
• 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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THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM

13. Organizational benefits
• Great customer loyalty
• Marker share improvements
• Higher stock price
• Reduced service calls
• Higher prices
• Greater productivity
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THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM

14. Quality and Business
Performance
Customer-Driven Price Advantage Market Share
Quality
Customer
Customer attributes values
And design space profitability and
growth
productivity
Specification
quality Lower costs
Higher profitability
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THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM

15. Leaders in the Quality Revolution
• W. Edwards Deming (early 1950)
• Joseph M. Juran (1954)
• Philip B. Crosby
• Armand V. Feigenbaum
• Kaoru Ishikawa
• Genichi Taguchi
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THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM

16. Deming Chain Reaction
Improve quality
Costs decrease
Productivity improves
Increase market share with better
quality and lower prices
Stay in business
Provide jobs and more jobs
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THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM

17. Deming’s System
of Profound Knowledge
• Appreciation for a system
• Understanding variation
• Theory of knowledge
• Psychology
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THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM

18. Deming’s 14 Points (Abridged) (1 of 2)
1. Create consistency of purpose with a plan
2. Adopt the new philosophy of quality.
3. Cease dependence on mass inspection.
4. End practice of choosing suppliers based solely on price.
5. Identify problem and work Constantly improve system.
6. Adopt modern method of training on the job.
7. Change the focus from production numbers to quality.
8. Drive out fear.
9. Break down barriers between departments.
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THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM

19. Deming’s 14 Points (2 of 2)
10. Stop requesting improved productivity with out
providing method to achieve it.
11. Eliminate work standard that prescribe numerical
quotas.
12. Remove barriers to pride of workmanship.
13. Institute vigorous education and retraining.
14. Create a structure in top management that will
emphasize the preceding thirteen points every day.
www.deming.org
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THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM

20. Juran’s 10 step to quality improvement
Quality planning
Quality organizing
Quality improvement
• Build awareness of • Give recognition
opportunities to improve
• Communicate results
• Set goals for improvement
• Organize to reach goals
• Keep score
• Provide training • Maintain momentum by
• Carry out projects to solve making annual
problems improvement part of the
• Report progress regular system and
process of the company
www.juran.com
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THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM

21. Phillip B. Crosby
Quality is free . . . :
“Quality is free. It’s not a gift, but it is free. What
costs money are the unquality things -- all the
actions that involve not doing jobs right the first
time.”
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THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM

22. Crosby 14 Points (Abridged) (1 of 2)
Absolutes of Quality Management:
• Management commitment
• Quality improvement team
• Quality measurement
• Cost of quality
• Quality awareness
• Corrective action
• Zero defect planning
• Supervisor training
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THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM

23. • Zero defects day
• Goal setting
• Error cause removal
• Recognition
• Quality councils
• Do it all aver again
www.philipcrosby.com
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THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson Learning
TM

24. A.V. Feigenbaum
• Three Steps to Quality
– Quality Leadership, with a strong focus
on planning
– Modern Quality Technology, involving
the entire work force
– Organizational Commitment, supported
by continuous training and motivation
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THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM

25. 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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THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM

26. Quality and Personal Values
• Personal initiative has a positive impact
on business success
• Quality begins with personal attitudes
• Quality-focused individuals often exceed
customer expectations
• Attitudes can be changed through
awareness and effort (e.g., personal
quality checklists)
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THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM

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THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM

28. Malcolm Baldrige
National Quality Award
• Help improve quality in U.S.
companies
• Recognize achievements of
excellent firms and provide
examples to others
• Establish criteria for evaluating
quality efforts
• Provide guidance for other U.S.
companies
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THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM

29. Criteria for Performance
Excellence
• Leadership
• Information and analysis
• Strategic quality planning
• Human Resource development and management
• Management of process quality
• Quality and operational results
• Customer focus and satisfaction
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THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM

30. The Baldrige Framework –
A Systems Perspective
Organizational Profile:
Environment, Relationships, and
Challenges
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2
Human
Information Resource
and Focus
analysis
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1 Customer
Customer
Leadership focus and
focus and
satisfaction
satisfaction
3
Strategic 5
quality
planning Process
Management
6
Quality and Operational Result
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THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM

31. Baldrige Award Evaluation Process
Receive Applications
Stage 1
Independent Review
Judges Select for No Feedback report
Consensus Review?
to applicant
Stage 2
Consensus Review
Judges Select for No Feedback report
Site Visit Review?
to applicant
Stage 3
Site Visit Review
Stage 4
Judges Recommend Award Feedback report
Recipients to
NIST Director/DOC to applicant
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THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM

32. The Baldrige Award
Scoring System
• Three evaluation dimensions - Approach,
Deployment, and Results
• Scoring is linked to the importance to the
applicant’s business
• Scoring guidelines
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THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM

33. Feedback Report
• Strengths - approaches or results that
demonstrate effective response to the
Criteria
• Opportunities for improvement - how the
applicant can better address the purposes
of the Criteria, or issues that require
clarification
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THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM

34. Self Assessment and the Baldrige
National Quality Program
A primary goal of the
Program is to encourage many
organizations to improve on
their own by equipping them
with a standard template for
measuring their performance
and their progress toward
performance excellence.
THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM 34