The Total Quality

Approach
to Quality Management
Outline
 What is Quality?
 The Total Quality Approach
 Two Views of Quality
 Elements of Total Quality
 The Deming Cycle
 Juran’s Contributions
 Crosby’s Contributions
 Total Quality Efforts Succeed
 Six-Sigma Concept
 The Future of Quality Management
What is Quality? (1)
I-PHONE - “Performance to the standard expected by
the customer”
DELL COMPUTER- “Meeting the customer’s need the
first time and every time”
AIRASIA - “Providing customers with products and
services that consistently meet their needs and
expectations.
WOU- “Doing the right thing right the first time, always
striving for improvement, and always satisfying the
customer”.
Quality can be defined in terms of the agent. Who is
the judge of quality?
What is Quality? (2)
 Quality involves meeting or exceeding customer
expectations.
 Quality applies to products, services, people, processes,
and environments.
 Quality is an ever-changing state (i.e., what is considered
quality today may not be good enough to be considered
quality tomorrow).

Quality is a dynamic state associated with products,

services, people, processes and environments that
meets or exceeds expectations.
 The Total Quality Approach (1)

 Total quality is an
approach to doing
business that attempts
to maximize the Customer focus
competitiveness of an
organization through the
continual
improvement of the
quality of its products,
services, people,
processes and
environments.
 The Total Quality Approach (2)
Customer focus
 Characteristics of the Total Quality:
o Strategically based
o Customer focus (internal and external)
o Obsession with quality
o Scientific approach to decision making and
problem solving
o Long-term commitment
 The Total Quality Approach (2)

Customer focus
 Characteristics of the Total Quality:
o Teamwork
o Continual process improvement
o Education and training
o Freedom through control
o Unity of purpose
o Employee involvement and empowerment
Historic Development of Total Quality Approach

Customer focus
The Total Quality Approach (4)
Japanese Strategies: Customer focus

The upper managers personally take charge of

leading the revolution.
All levels and functions under go training in
managing for quality.
Quality improvement should be taken at a
continuing, revolutionary pace.
The workforce is enlisted in quality improvement
through the Quality Control (QC) concept.
Two Views of Quality (1) Customer focus
Traditional View: Total Quality View

• Process performance = • Process performance = defective

defective parts per hundred parts per million produced.
produced.
• Continuous improvement of
• Focused on after-the-fact products, processes and people.
inspections of products.
• Employees are empowered to think
• Employees are passive
and make recommendations.
workers who followed orders.
• At least 10 improvements per
• One improvement per year
employee per year
per employee
• Focus on long term profits and
• Focus on short term profits
continual improvement.
Two Views of Quality (2) Customer focus
Traditional View Total Quality View
Productivity versus quality
Productivity and quality are Lasting productivity gains are
always in conflict. You cannot made only as a result of quality
have both. improvements.
How quality is defined
Satisfying customer needs and
Meeting customer specifications.
exceeding customer expectations.

How quality is measured

Establishing an acceptable level Establishing high-performance
of nonconformance and bench marks for customer
measuring against the bench satisfaction and then continually
mark. improving performance.
Two Views of Quality (3) Customer focus

Traditional View Total Quality View

How quality is achieved
Quality is inspected into the Quality is determined by product
product. design and achieved by
effective control techniques.
Attitude towards defects
Defects are an expected part of Defects are to be prevented using
producing a product. effective control systems.

Quality as a function
Quality is a separate function. Quality should be fully integrated
throughout the organization, i.e. it
should be every body’s
responsibility.
Two Views of Quality (4) Customer focus
Traditional View Total Quality View
Responsibility for quality
Employees are blamed for 80% quality problems are
quality. management’s fault.

Supplier relationships
Supplier relationships are short Supplier relationships are long term
term and cost driven. and quality oriented.
Elements of Total Quality (1)
Strategically Based
 Comprehensive strategic plan with following elements:
vision, mission, broad objectives and following activities
 Provides sustainable competitive advantage in the
marketplace.
Customer Focus
 “Customer is the driver”.
 External customers: define the quality of the product or
service delivered.
 Internal customers: define the quality of people,
processes, and environment associated with the products
or services.
Elements of Total Quality (2)

Obsession with Quality

 All personnel at all levels approach all aspects of the job
from the perspective of “How can we do this better?”.
 “Good enough” is never good enough.

Scientific Approach
 Hard data are used in establishing benchmarks,
monitoring performance, and making improvements.
 Decision making and problem solving is based on
scientific principals.
Elements of Total Quality (3)
Long-term Commitment
 Quality improvement is NOT another management
innovation but a whole NEW way of doing business that
requires an entirely new corporate culture.
Teamwork
 Internal competitiveness vs. External competitiveness

Continual Process Improvement

 Continually improve systems (environments) where
products are developed and services are delivered by
people.
Elements of Total Quality (4)

Education and Training

 Best way to improve people on a continual basis.
 Train hardworking people “How to work smart?”
Freedom through Control
 Involving and empowering employees to simultaneously
bring more minds to bear on the decision-making process
and increase the ownership employees feel about
decisions that are made.
 Well-planned and carried-out controls (not loss of
management control).
Elements of Total Quality (5)
Unity of Purpose
 Internal politics have no place in a total quality
organization, rather collaboration is the norm.
 Unity of purpose has nothing to do with Labor Unions.
Employee Involvement and Empowerment
 Basis for involving employees: 1. to increase the
likelihood of a good decision or a better plan; 2. to
promote ownership of decisions by involving the people
who will have to implement them.
 Empowerment means not just involving people but
involving them in ways that give them a real voice.
The Deming Cycle (1)
1. Conduct consumer research and
use it in planning the product
(PLAN).
2. Produce the product (DO).
3. Check the product to make sure
it was produced in attendance
with the plan (CHECK).
4. Market the product (ACT).
5. Analyze how the product is
received in the market in terms
of quality, cost and other criteria
(ANALYZE)
Deming’s Fourteen Points (2)
Deming’s Seven Deadly Diseases (3)
 Juran’s Contributions (1)
Juran’s Three Basic Steps to Progress

Juran’s Ten Steps to Quality Improvement

Juran’s Contributions (2)

The Pareto Principle

80/20 Rule: 80% of the trouble comes from 20% of the
problems.
The Juran Trilogy
Juran’s Contributions (3)
Quality Planning
1. Determine who the customers are:
2. Identify customers’ needs.
3. Develop products with features that respond to customer
needs.
4. Develop systems and processes that allow the
organization to produce these features.
5. Deploy the plans to operational levels.
Quality Control
1. Assess actual quality performance.
2. Compare performance with goals.
3. Act on differences between performance and goals.
Juran’s Contributions (4)
Quality Improvement

1. Develop the infrastructure necessary to make annual

quality improvements.
2. Identify specific areas in need of improvement, and
implement improvement projects.
3. Establish a project team with responsibility for completing
each improvement project.
4. Provide teams with what they need to be able to
diagnose problems to determine root causes, develop
situations, and establish control that will maintain gains
made.
Crosby’s Contributions
Crosby’s Quality Vaccine Ingredients

1. Determination.
2. Education.
3. Implementation.
Total Quality Efforts Succeed

The successful organizations avoid these errors:

 Senior management delegation and poor leadership.

 Team mania.

 Deployment process.

 Taking a narrow, dogmatic approach.

 Confusion about the differences among education,

awareness, inspiration, and skill building
Six Sigma Concept (1)
A Six-step Protocol for Process Improvement
1. Identify the product characteristics wanted by the
customers.
2. Classify the characteristics in terms of their criticality.
3. Determine if the classified characteristics are controlled
by part and/or process.
4. Determine the maximum allowable tolerance for each
classified characteristic.
5. Determine the process variation for each classified
characteristic.
6. Change the design of the product, process, or both to
achieve a Six Sigma processes performance.
Six Sigma Concept (2)

Histogram of a 3-Sigma
Process

Histogram of a 6-Sigma
Process
 Six Sigma Concept (3)
What is Six Sigma?
Six Sigma is an extension of total quality management
which has the aim of taking process and product quality to
levels where all customer requirements are met.

How is Six Sigma Achieved?

 By improving process performance.
 Or, Without improving the process at all if the
specifications describing acceptable product can be
loosened enough to correspond to the original process’s
± 6 sigma points.
 Histogram of a 6-sigma process achieved by broadening the
specification range for product acceptability

Histogram is shifted 1½ Sigma from its ideal position to account for

long-term variation.
The Future of Quality Management (1)
Future Trends
 Demanding global customers.
 Shifting customer expectations.
 Opposing economic pressures.
 New approaches to management.
Quality Management Characteristics for the Future
 A total commitment to continually increasing value for
customers, investors, and employees.
 A firm understanding that quality is defined by customers, not
the company.
 A commitment to leading people with a bias for continuous
improvement and communication.
 A recognition that sustained growth requires the simultaneous
achievement of four objectives all the time, forever: (a)
customer satisfaction, (b) cost leaderships, (c) effective human
resources, and (d) integration with the supplier base.
 A commitment to fundamental improvement through
knowledge, skills, problem solving and teamwork.
Questions/Queries?