PHILOSOPHIES IN THE FIELD OF TQM

Service
Specifications
at UPS
 Philosophies in the field of TQM

1. W. Edwards Deming

2. Philip B Crossby

3. Joseph M Juran
 Deming’s Philosophy

• The focus is management- it cannot “ pass the buck”

• Workers, management, vendors, and investors are a team
• Without management commitment, TQS cannot be
adopted and implemented
• Deming recommends 14 points for management to
provide the necessary sense of direction
 Deming’s 14 points
1. Create a vision and demonstrate commitment
2. Learn the new philosophy
3. Understand inspection
4. Stop making decisions purely on the basis of cost
5. Improve constantly and forever (PDCA CYCLE)
6. Institute Training
7. Institute Leadership
8. Drive out Fear
9. Optimize the Efforts of Team
10. Eliminate exhortations
11. Eliminate numerical quotas and Management by Objectives (MBO)
12. Remove barriers for pride in workmanship
13. Encourage Education and Self-Improvement
14. Take action
 Crossby’s Philosophy

• His approach begins with an evaluation of the existing

quality system
• His ‘Quality Management Grid’ identifies and pinpoints
operations that have potential for improvement
• The grid is divided into five stages of maturity and six
measurement categories:

• Measurement Categories:
• (i) Management understanding and attitude
• (ii) Quality organization status
 Crossby’s Philosophy
• (iii) Problem handling
• (iv) Cost of quality as a percent of sales
• (v) Quality Improvement Actions
• (vi) Summary of company quality posture

• Stages of Maturity

(i) Uncertainity: “we do not know why we have problems

with quality”
(ii) Awakening: “Is it absolutely necessary to always have
problems with quality”
 Crossby’s Philosophy
(iii) Enlightenment: “Through management commitment and
quality improvement we are identifying
and resolving our problems”

(iv) Wisdom: “Defect prevention is a routine part of our

operation”

(v) Certainty: “We know why we do not have problems with

quality”
 Four Aspects of Quality Management
(i) Definition of quality: Quality means conformance to
requirements

(ii) System for achievement of quality: The rational

approach is prevention of defects

(iii) Performance standard: The only performance standard

is zero defects

(iv) Measurement: The performance measurement is the cost

of quality
 14-step Plan for Quality Improvement
(i) Management commitment
(ii) Quality improvement team
(iii) Quality measurement
(iv) Cost of quality evaluation
(v) Quality awareness
(vi) Corrective action
(vii) Ad hoc committee for the zD program
(viii) Supervisor training
(ix) zD day
(x) Goal setting
(xi) Error cause removal
(xii) Recognition
(xiii) Quality Council
(xiv) Do it over again
 Juran’s Philosophy

• Juran believes that management has to adopt a unified

approach to quality

• Quality is defined as ‘fitness for use’: focus is needs of the

customer

• He proposes a universal way of thinking about quality that

he calls ‘Quality Trilogy’

• Common Causes and Special Causes

‘Quality Trilogy’ Process
 ‘Quality Trilogy’ Process
1. Quality Planning
- Identify the customers – both external and internal
- Determine customer needs
- Develop product features that respond to customer needs
- Establish quality goals that meet the needs of the
customers and suppliers alike and do so at a minimum
combined cost
- Develop a process that can produce the needed product
features
- Prove process capability
 ‘Quality Trilogy’ Process
2. Quality Control
- Choose control subjects/product characteristics
- Choose units of measurement
- Establish measurements
- Establish standards of performance
- Measure actual performance
- Interpret the difference (actual versus standard)
- Take action on the difference
 ‘Quality Trilogy’ Process
3. Quality Improvement
- Prove the need for improvement: address chronic
problems
- Identify specific projects for improvement: Pareto
analysis/sporadic and chronic problems
- Organize to guide the projects: organizational structure
for the project
- Organize for diagnosis – for discovery of causes
- Find the causes: C and E diagram
- Provide remedies: most difficult step
-Prove that remedies are effective under operating
conditions
- Provide control mechanisms to hold the gains
 Other Quality Philosophers
• A V Feigenbaum: Three Steps to Quality
1. Quality Leadership
2. Modern Quality Technology
3. Organizational Commitment

• Kaoro Ishikawa: Promoted greater involvement by all

employees, from top management to
front-line staff, by reducing reliance on
quality professionals and quality
departments
 Other Quality Philosophers
• Some key elements in Kaoro Ishikawa’ s Philosophy:
1. Quality begins with education and ends with education
2. The first step in quality: Know the customer
requirements
3. Ideal state: No inspection
4. Remove the root cause, not the symptoms
5. Quality Control: responsibility of all workers and all
divisions
6. Do not confuse means with objectives
7. Put quality first and set your sights on long-term profits
8. Marketing is the entrance and exit of quality
 Other Quality Philosophers
9. Top management must not show anger when facts are
presented by subordinates
10. 99% of the problems in a company can be solved with
simple tools for analysis and problem solving
11. Data without dispersion information (variability) are false
data
 Other Quality Philosophers
• Genichi Taguchi:

• Quality engineering concept: offline QC

• Quality linked to societal loss
• Design of ‘robust’ product
• Steps to achieve ‘robust’ product/process: system design,
parameter design and tolerance design
• Concept of Quadratic Loss Function and Signal-to-Noise
(S/N Ratio) as performance measure
 Quality Management Frameworks
• Three frameworks that have had the most impact on QM
practices:

1. Malcolm Baldrige National Quality Award

2. ISO 9000 Certification Process
3. Six Sigma
 MBNQA

• Upto three companies can receive an award in each of

original categories: manufacturing, small business, and
services
• The main objective is to enhance competitiveness of a
company through an aligned approach to organizational
performance management that results in:
(i) Delivery of ever-improving value to customers,
resulting in improved market place success
(ii) Improvement of overall company performance and
capabilities
(iii) Organizational and personal learning
 MBNQA
• The award criteria are built on the following core values:
(i) Customer-driven quality
(ii) Leadership
(iii) Continuous improvement
(iv) Employee participation and development
(v) Fast response
(vi) Design quality and problem prevention
(vii) Long-range view of the future
(viii) Management by fact
(ix) Partnership development
(x) Company responsibility and citizenship
(xi) Results focus
 Criteria for Performance Excellence

• It consists of a set of categories and items

• The seven categories are as follows
(i) Leadership
(ii) Strategic Planning
(iii) Customer and Market Focus
(iv) Measurement, Analysis and knowledge Management
(v) Human Resource Focus
(vi) Process Management
(vii) Business Results
2003 Criteria Categories
 MBNQA Winners

• Motorola
• Xerox
• GM
• IBM
• AT & T
• East man
• Armstrong
• Corning
• ADAC
• Boeing
• ADAC Laboratory
 Other International Quality award Programs

1. Deming Prize
2. European Quality Award
3. Canadian Awards for Business Excellence
4. Australian Business Excellence Awards
 ISO 9000:2000 Standards
• The international organization for standardization (IOS)
composed of representatives from the national standard
bodies of 91 nations, adopted a series of written quality
standards in 1987. They were revised in 1994 and again, in
2000.
• Objectives of the Standards:
(i) To improve product or service quality continuously
(ii) To improve quality of operations
(iii) To provide confidence for internal management regarding

fulfillment of quality requirements

 ISO 9000:2000 Standards
(iv) To provide confidence to customers regarding fulfillment
of their quality requirements
(v) To provide confidence that quality system requirements
are fulfilled

• Often ISO certification is necessary to obtain product

certification, and meeting these standards is becoming a
requirement for international competitiveness
 ISO 9000:2000 Standards
• Benefits of ISO9000 registration are manifold:
(i) Higher customer satisfaction
(ii) Higher customer retention
(iii) Higher quality products
(iv) Improved productivity
(v) Increasing on-time delivery
(vi) Decreasing defects
(vii) Increased use of data as a business management tool
(viii) Increased management commitment
(ix) Efficient management reviews
(x) Improved customer communication
 ISO 9000:2000 Standards
• Thus, using ISO 9000 as a basis for a quality system can
improve productivity, decrease costs, and increase customer
satisfaction.

• QM Principles (QM-P)

- Customer Focus (P-1)

- Leadership (P-2)
- Involvement of people (P-3)
- Process Approach (P-4)
- System Approach to Management (P-5)
- Continual Improvement (P-6)
 ISO 9000:2000 Standards
- Factual Approach to Decision Making (P-7)
- Mutually Beneficial Supplier Relationships (P-8)

• Implementation and Registration

(i) Quality system manual and creating conditions
(training/documentations)
(ii) Adequacy Audit
(iii) Final Documentation
(iv) Compliance Audit
(v) Registration
(vi) Renewal

• “Implementing ISO 9000 is not an easy task”. Why?

Any Queries??