UNIT I. NATURE OF TOTAL QUALITY MANAGEMENT
Overview
This unit introduces the various concepts, elements, principles and benefits of TQM
in an organization’s successful operation. Primarily, this unit aims to give you an ability to
analyze and develop a concrete understanding on what really is TQM all about, what it is for
and its importance to any type of organization particularly in business.
Learning Objectives
At the end of the unit, I am able to:
1. define key concepts related to TQM;
2. examine the elements of TQM;
3. know the principles of TQM and peculiarities of their implementation;
4. identify the benefits of TQM in an organization’s successful operation; and
5. determine the impact of quality on profitability
Setting up
Name: _____________________________________________
Course/Year/Section: ___________________________
Date: __________________
Direction: Based on your understanding regarding the concept and nature of quality, identify
and choose three different product line that you think possesses a certain characteristics of
quality. Show a picture and background details or information about your chosen products
and then give the feature or characteristics of the product quality that passed your own
judgment. Explain your answer
My Answer:
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Lesson Proper
Definition of Quality
People have found many ways to define what quality is. Some of the most popular
definitions for quality are listed below. All of them are right, as they each contain a key
element of what quality means to users of products and services.
1. A degree of excellence
2. Conformance to requirements
3. Totality of characteristics which act to satisfy a need
4. Fitness for use
5. Fitness for purpose
6. Freedom from defects
Delighting customers.
Any business that can't manage the quality of its processes and products tends to fall
apart. Quality is critical to sales, cost control, productivity, risk management and compliance.
As important as quality is, there's little agreement as to its definition. The following
definitions look at quality from a management, quality assurance, product, marketing,
manufacturing and economic point of view.
1. Fit for Purpose: Perhaps the most useful business definition of quality is "fit for purpose".
This definition evolved in quality management circles. It's useful because it's applicable to
any process, service or product. However, it can be difficult to measure. An example of a
quality process or product is fit for its purpose is if the purpose of an aircraft is to be fast,
efficient, comfortable and safe — then that's the definition of a quality aircraft. Fit for purpose
is a practical and flexible definition that's the cornerstone of most quality management
initiatives.
2. Conformance to Requirements: Quality is often measured in terms of conformance to
requirements. For example, business users define requirements for a sales system. The sales
system is developed and its quality is measured against the requirements.
3. Quality is Proportional to Cost: Take note that traditionally, product quality was thought
of in terms of material costs. A watch that's made of gold is higher quality than a watch made
of plastic. High quality sheets have a thread count of 180 or higher. High quality hand
moisturizer has high Shea butter content. A quality product costs more to produce. This type
of quality definition works well for some simple products. However, it's inapplicable to
technology, art and culture. The history of technology is filled with cheaper products that
have higher quality.
4. Quality is Price: Quality is an essential part of economic models. Economists have
developed various definitions of quality. Economists tend to judge quality by the price
consumers are willing to pay. Quality is the price consumers are willing to pay for a product
or service. If you're an economist and you need to measure quality across an entire economy
— you need a quality definition that's easy to measure. According to economists, if something
is expensive, it's high quality.
5. Quality is a Standard: The manufacturing industry was the first to take a hard, scientific
look at quality. Manufacturers are concerned both with the quality of products and the quality
of the manufacturing process itself. Quality is compliance to best known standards, processes
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and specifications. As other industries mature, the standards approach to quality starts to
make sense. For example, there is great interest in standards for IT services.
6. Quality is Value for Performance: Marketing teams look for practical definitions of
quality that explain why consumers and businesses buy. One of the best ways to model
purchasing behavior is with the following definition of quality. Quality is value for price.
According to estimates, McDonald's sells 550 million Big Macs each year in the US alone.
Obviously, customers see value in the Big Mac. It's not always practical to measure quality by
the yardstick of a 3-star restaurant. According to this definition a $3 disposable tooth brush
may be higher quality than a $3000 golden tooth brush because it offers more value.
7. Quality is an Experience: As economies have shifted from a product to a service focus
marketers have sought definitions of quality that explain why customers purchase services.
Quality is a satisfying experience. Experiences are measured by establishing relationships
with customers to elicit dialog and feedback. Experience quality can also be measured by
bottom line metrics such as revenue, return visits and lifetime customer value.
Concept of Quality in other Fields of Specialization
In business, engineering and manufacturing, quality has a pragmatic interpretation
as the non-inferiority or superiority of something. Quality means a measure of excellence or
a state of being free from defects, deficiencies and significant variations. It is brought about
by strict and consistent commitment to certain standards that achieve uniformity of a
product in order to satisfy specific customer or user requirements.
Quality is a perceptual, conditional, and somewhat subjective attribute and may be
understood differently by different people. Consumers may focus on the specification
quality of a product/service, or how it compares to competitors in the marketplace.
Producers might measure the conformance quality, or degree to which the product/service
was produced correctly.
Support personnel may measure quality in the degree that a product
is reliable, maintainable, or sustainable. A quality item (an item that has quality) has the
ability to perform satisfactorily in service and is suitable for its intended purpose. There are
five aspects of quality in a business context:
1. Producing – providing something.
2. Checking – confirming that something has been done correctly.
3. Quality Control – controlling a process to ensure that the outcomes are predictable.
4. Quality Management – directing an organization so that it optimizes its performance
through analysis and improvement.
5. Quality Assurance – obtaining confidence that a product or service will be
satisfactory. (Normally performed by a purchaser)
Quality applied in these forms was mainly developed by the procurement
directorates of NASA, the military and nuclear industries from the 1960s and this is why so
much emphasis was placed on Quality Assurance. The original versions of Quality
Management System Standards (eventually merged to ISO 9001) were designed to contract
manufacturers to produce better products, consistently and were focused on Producing,
Checking and Quality Control.
The subsequent move of the Quality sector towards management systems can be
clearly seen by the aggregation of the product quality requirements into one eighth of the
current version of ISO 9001. This increased focus on Quality Management has promoted a
general perception that quality is about procedures and documentation. Similar experiences
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can be seen in the areas of Safety Management Systems and Environmental Management
Systems. The emergence of tools like Asset Optimization and 6 sigma is an interesting
development in the application of quality principles in business.
Managing quality is fundamental to any activity and having a clear understanding of
the five aspects, measuring performance and taking action to improve is essential to an
organizations survival and growth.
Types of Quality
Quality is the value of things relative to their purpose. Any product, service,
experience or asset can be described in terms of its quality or lack of quality. Quality includes
both tangible aspects such as features and intangible aspects such as the taste of food. The
following are types of quality.
1. PRODUCT QUALITY - Products that fit customer needs and fulfill customer expectations.
It is the value of a product to customers. The following are common types of product quality.
a. Conformance
e. Safety & Security
b. Fit for purpose
f. Efficiency
c. Communication & Information
g. Experience
d. Reliability.
2. SERVICE QUALITY - The value of a service to customers. This is inherently subjective as it
is driven by the needs, expectations and perceptions of customers. As such, it is typically
measured by quantifying customer surveys. The following are common types of service
quality.
a. Reliability
e. Consistency
i. Tangibles
b. Responsiveness
f. Safety & Security
j. Experiences
c. Empathy & Tailoring
g. Environments
d. Competence & Diligence
h. User Interfaces
3. EXPERIENCE QUALITY - The value of an experience to customers. It is a measure of
customer perceptions that can be applied to diverse services including areas such as
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medicine, technology, travel, entertainment and hospitality. The following are common types
of experience quality.
a. Customer Service
h. Empathy & Tailoring
b. Environments
i. Reliability & Consistency
c. User Interfaces
j. Tangibles
d. Communication & Information
k. Risk
e. Processes & Activities
l. Engagement
f. Delivery
m. Image & Identity
g. Adaptability
n. Competence & Diligence
4. IT QUALITY - The value of IT services to customers or internal business units. This
typically includes elements of functionality, usability, performance and reliability. Some
common types of IT quality are the following:
a. Availability
d. Fault tolerance, such as the following:
b. Data integrity
* Information security
* Reliability
c. Efficiency
* Maintainability
5. DATA QUALITY - The degree to which information fits its purpose. It can be difficult for
organizations to agree on data quality criteria because each team may use data towards
different purposes. The following are commonly used criteria to define data quality.
a. Relevance c. Precision
e. Completeness
g. Traceability
b. Timeliness d. Correctness
f. Credibility
6. INFORMATION QUALITY - The value of information for a given use. The following are
common types of information quality.
a. Accurate
c. Credibility e. Completeness
g. Uniqueness
b. Precision
d. Timeliness f. Relevance
h. Comprehensible
7. QUALITY OF LIFE is the well-being of individuals, communities and societies. It is a
comprehensive measure that can be used to evaluate efforts to improve cities and nations.
The following are examples of things that impact quality of life.
a. Health
g. Education
m. Community
s. Public Space
b. Air Quality
h. Knowledge
n. Freedom of Speech t. Culture
c. Water Quality
i. Happiness
o. Human Rights
u. Profession & Creativity
d. Food Quality
j. Safety
p. Legal Rights
v. Physical Activity
e. Standard of Living k. Freedom from Fear q. Privacy
w. Transportation
f. Proximity
l. Resilience
r. Sustainability
Factors Affecting Quality
The quality of products and services are directly affected by many base factors. In
today’s, world these factors play a crucial role in an organization are listed below.
1. Markets: New products are hitting the market at an explosive rate. Many of these
products are manufactured by material and methods unheard till a few years back.
Customers demand and get better products today. As markets broaden in scope, the
scope of goods and services become more and more specialized. Burners today
should be very flexible and be able to a respond rapidly and appropriately in different
markets worldwide.
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2. Money: As competition has increased, profit margins have decreased. Automation
forced companies to spend heavily on new equipment’s and processes. To absorb
these costs productivity has to the increased, which means loss production, reworks
and scrap has to be kept to the minimum. Quality costs have to be kept low which
mean cost saving due to quality improvement has to be kept in prime focus.
3. Man: The rapid growth of technology and opening of new fields have created a great
demand for workers with specialized knowledge. This specialization of people has
created a need for persons who can bring together this knowledge to plan and create
operating systems that will bring the desired results.
4. Materials: Due to high material costs engineers have to constantly keep coming up
with ways to bring down the cost of material used. They also need to come up with
new alternate materials that can replace costlier older material.
5. Machines: The demand to cut costs is forcing companies to use newer machines,
which will deliver better quality and product using lesser cycle times. Further the
machines need to deliver higher quantities also to keep production costs low. This
means maintaining of these machines also becomes critical as any and only down
time of these machines leads to increased costs.
7. Management: Today responsibility for product quality has to be distributed among,
various functions. For example, design of design for quality of product design.
Manufacturing for process quality, service for after sales quality and marketing for
establishing the quantity of the new product required. This means that top
management should ensure proper allocation of responsibilities to all to achieve the
organization goals.
8. Motivation: The increased complexity of the product means that every employee has
to give his best quality is to be maintained. This requires that quality consciousness
among employees are high. This can be achieved only through continuous education
and motivation of the work force. Motivation, therefore, needs to be on the top of the
agenda for any management team of an organization.
9. Modern Methods of Information: With the spread of computers, data collection,
storage retrieval retrieved and transmission of information has become easy. This
also means that the right information can be given to the right person at his
workplaces be it on the machines or in the office.
From the above we see that there are many factors affecting quality and organization
should continually change to keep pace with these requirements. As responsible citizens it is
our duty to demand quality from our suppliers and deliver quality to our customers. Quality
is an endless journey. It is like walking toward the horizon. No matter how much far you walk,
it does not change where the horizon is.
Concept of Total Quality Management
Total Quality Management (TQM) is an enhancement to the traditional way of doing
business. It is a proven technique guaranteeing survival in world-class competition. The
culture and actions of an organization can be transformed by changing only the actions of
management. Total Quality Management (TQM) is a comprehensive and structured approach
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to organizational management that seeks to improve the quality of products and services
through ongoing refinements in response to continuous feedback.
Total Quality Management, which is frequently known by its acronym TQM, requires
organizations to focus on continuous improvement, or kaizen. It focuses on process
improvements over the long term, rather than simply emphasizing short-term financial gains.
TQM prescribes a series of ways for organizations to accomplish this, with the
pathway to successful continuous improvement centered on the use of strategy, data and
effective communication to instill a discipline of quality into the organization's culture and
processes.
More specifically, TQM puts a spotlight on the processes that organizations use to
produce their products, and it calls for organizations to define those processes, continuously
monitor and measure their performance, and use that performance data to drive
improvements. Furthermore, it calls for all employees, as well as all organizational
departments, to be part of this process.
TQM's objectives are to eliminate waste and increase efficiencies by ensuring that the
production of the organization's product (or service) is done right the first time. This
management framework was initially applied to companies in the manufacturing sector, but,
over the decades, organizations in other sectors have adopted it, as well.
TQM Defined
TQM is a management philosophy that seeks to integrate all organizational functions
(marketing, finance, design, engineering, and production, customer service, etc.) to focus on
meeting customer needs and organizational objectives.
TQM views an organization as a collection of processes. It maintains that
organizations must strive to continuously improve these processes by incorporating the
knowledge and experiences of workers. The simple objective of TQM is “Do the right things,
right the first time, every time.” TQM is infinitely variable and adaptable. Although originally
applied to manufacturing operations, and for a number of years only used in that area, TQM
is now becoming recognized as a
generic management tool, just as
applicable in service and public
sector organizations. There are a
number of evolutionary strands,
with different sectors creating
their own versions from the
common ancestor. TQM is the
foundation for activities, which
include:
 Commitment by senior
management and all
employees
 Meeting
customer
requirements
 Reducing development
cycle times
 Just in time/demand flow manufacturing
 Improvement teams
 Reducing product and service costs
 Systems to facilitate improvement
 Line management ownership
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




Employee involvement and empowerment
Recognition and celebration
Challenging quantified goals and benchmarking
Focus on processes / improvement plans
Specific incorporation in strategic planning
This shows that TQM must be practiced in all activities, by all personnel, in
manufacturing, marketing, engineering, R&D, sales, purchasing, HR, etc. In other words,
TQM is a continuous effort by the management as well as employees of a particular
organization to ensure long term customer loyalty and customer satisfaction.
Remember, one happy and satisfied customer brings ten new customers along with him
whereas one disappointed individual will spread bad word of you and spoil several of your
existing as well as potential customers.
You need to give something extra to your customers to expect loyalty in return.
Quality can be measured in terms of durability, reliability, usage and so on. Total quality
management is a structured effort by employees to continuously improve the quality of their
products and services through proper feedbacks and research. Ensuring superior quality of
a product or service is not the responsibility of a single member.
Every individual who receives his/her paycheck from the organization has to
contribute equally to design foolproof processes and systems which would eventually ensure
superior quality of products and services. Total Quality management is indeed a joint effort
of management, staff members, workforce, and suppliers in order to meet and exceed
customer satisfaction level. You can’t just blame one person for not adhering to quality
measures. The responsibility lies on the shoulder of everyone who is even remotely
associated with the organization.
Analyzing the three words, we have:
• Total - Makeup of the whole
• Quality - Degree of excellence a product or service provides
• Management - Act, art or manner of handling, controlling, directing etc.
Therefore, TQM is an art of managing the whole to achieve excellence. It a philosophy
at the same time a set of benchmarks that represent the foundation of a continuously
improving organization. An application of quantitative methods and human resources to
improve all the processes within an organization and exceed customer needs at present and
in the future. TQM integrates fundamental management techniques, existing improvement
efforts and technical tools under a disciplined approach.
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Elements of Total Quality Management
In the face of competition, it takes a good deal of effort to stand as the formidable
opponent to other organizations. With quality, you can bag quite the lead. With TQM, it is a
known fact that organizations and departments alike, make good progress with its quality.
It’s like building success from the ground up, much like building or constructing a house.
Within the paradigm of TQM, there are 8 essential elements that form the crux of the
approaches mentored out for this unique system. The success of the TQM framework
depends on these elements that are put together and further categorized into 4 groups. They
are as follows:
 Foundation
 Building Bricks
 Binding Mortar
 Roof
Let’s have a sneak-peek into
each of these groups first and then
divulge into their components to
gain a wholesome understanding
about these elements.
Group A – Foundation
Laying the foundation for
TQM within your organization that
foster sincerity, openness, and
fairness among employees are the
following elements:
1. Ethics
2. Integrity
3. Trust
Group B – Building Blocks
These elements are the four walls of your quality house that is responsible to enable
the house to stand straight and tall. These bricks are carefully placed on the foundation in an
effort for it to reach the roof of recognition and support it:
4. Training
5. Teamwork
6. Leadership
Group C – Binding Mortar
Bricks without mortar is basically a house of hay. This element brings the rest
together by a certain coercion. This is the famous: Communication
Group D – Roof
A house without a roof isn’t a house at all. This includes the bearer of solitude and
award: Recognition
Elements of TQM Explained
1. ETHICS – Ethics can be described as the understanding that an individual has about what
they deem right or wrong, or good or bad at a workplace. Ethics form the gray decision area
where an employee can decide as to what is good to be undertaken and what is bad that
shouldn’t be undertaken. High levels of work ethics can lead to efficient adherence to
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performance indicators, thus, promoting highly efficient professionals, who care about the
business objectives and work towards them. A check-mark for TQM.
2. INTEGRITY - Integrity would essentially be defined as upholding values/virtues such as
honesty, justice, morals, and sincerity. While knowing that a particular action is wrong,
making sure that they aren’t part of such debauchery forms as a good example of integrity.
3. TRUST - A sport team can only overcome obstacles and win if there’s relentless
collaboration and trust among the team members. This is applicable to organizations on the
brink of change; a change towards quality.
4. TRAINING - Training forms a quintessential part in the life cycle of the TQM framework.
Managers and supervisors are forerunners involved in the implementation of a successful
TQM session. It is essential for them to cascade to every employee within the organization
the importance of the elements and the basic approach, that is, TQM. Training employees to
enhance their interpersonal skills, their decision making and problem solving abilities, can
benefit the implementation. This can be followed with a view to bridge the gap between the
quantitative output of the business and the quality expectations, coming in from the
customers.
.
5. TEAMWORK - With TQM needing the cooperation of the entire department or
organization, it comes as a no-brainer to have an element called “Teamwork” to be included
as one of the building blocks of TQM. With a collaborative stance taken by the team members,
it encourages quicker and better solutions to be discussed and undertaken. TQM supports the
idea of three different types of teams. They are as follows:
1. Quality Improvement Teams (QITs) – These are temporary teams that deal with
specific problems/issues that crop up within a business. The normal tenure for such
teams is 3-12 months.
2. Problem Solving Teams (PSTs) – These are temporary teams to solve certain
problems and also identify causes and resolve issues. The tenure for such teams is
normally one week to 3 months.
3. Natural Work Teams (NWTs) – These teams comprise of skilled professionals who
share responsibilities and tasks. Concepts such as quality circles, self-reliant teams,
employee involvement teams are undertaken by such teams. Tenure for such teams
are 1-2 hours a week.
6. LEADERSHIP - Leadership comes across as the most important element within TQM. It is
essential at each and every stage within the framework. Providing an inspirational vision to
the employees is what is expected of a leader. Making strategic moves and guiding
subordinates is what is expected from a leader. They provide focus, sense of direction, and
clear instructions with the goal of the program in mind. With TQM, it is essential that the top
management is involved in the quality process as it comes to become their responsibility and
duty to maintain top notch quality at all times.
7. COMMUNICATION - Binding everything together and cementing the relationship of the
employees with the element of quality is effective communication. Effective
communication enables employees to learn better and be able to express better. This
facilitates innovative ideas and a proper medium to get them through.
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8. RECOGNITION - The roof of your quality house is recognition. Recognizing someone’s
work is extremely important in nowadays’ competitive environment. Recognition promotes
healthy competition in a bid to be acknowledged for the brilliant work put in. Recognition
enables an individual to put their best foot forward to be in line for a sparkling reward. It is
but a boost to human morale and pride.
These were the 8 essential elements in the world of TQM that have proven to TQM’s
success.
Principles of Total Quality Management
With increased competition and market globalization, TQM practices are now
becoming important for the leadership and management of all organizations. Even though
with TQM, we often dilute ISO certification, ISO, per se, enables an organization to streamline
its quality assurance systems in line with ISO systems and standards, while TQM practices,
which succeed ISO, ensure quality improvement in an organization. In line with ISO TC176,
which spells our quality management and quality assurance, quality management is a
comprehensive and fundamental rule or belief, for leading and operating an organization.
It is aimed at continually improving performance over the long term focusing on
customers while addressing the needs of all other stakeholders as well. The following eight
quality- management principles have been spelt out by this standard, which we follow in
promoting total quality management cultures in organizations.
Principle 1: Customer-focused Organization
Organizations depend on their customers and should therefore understand current
and future customer needs, meet customer requirements, and strive to exceed customer
expectations.
Principle 2: Employee Involvement through Effective Leadership
Employees are an organization’s internal customers. People at all levels are the
essence of an organization and their full involvement enables their abilities to be used for the
organization’s benefit. Employee involvement in the development of products or services of
an organization largely determines the quality of these products or services. On the other
hand, effective leaders can establish unity purpose and direction of organizations, they are
the ones who can create and maintain the internal environment in which people can become
fully involved in achieving the organization’s objectives.
Principe 3: Process Centered
Fundamental part of TQM is to focus on process thinking. A process is a series of steps
that take inputs from suppliers (internal or external) and transforms them into outputs that
are delivered to customers (again, either internal or external). The steps required to carry
out the process are defined, and performance measures are continuously monitored in order
to detect unexpected variation.
Principle 4: Integrated System
Following the principle of process centered, it is important to have an integrated
organization system that can be modeled, for example ISO 9000 or a company quality system
for the understanding and handling of the quality of the products or services of an
organization. Identifying, understanding, and managing a system of interrelated processes
for a given objective improve the organization’s effectiveness and efficiency.
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Principle 5: Strategic and Systematic Approach
A critical part of the management of quality is the strategic and systematic approach
to achieving an organization’s vision, mission, and goals. This process, called strategic
planning or strategic management, includes the formulation of a strategic plan that integrates
quality as a core component.
Principle 6: Factual Approach to Decision Making
In order to know how well an organization is performing, data on performance
measures are necessary. TQM requires that an organization continually collect and analyze
data in order to improve decision making accuracy, achieve consensus, and allow prediction
based on past history. In other words, decision-making within the organization must only be
based on facts, and data should support this decision-making process.
Principle 7: Communication
During times of organizational change, as well as part of day-to-day operation,
effective communications plays a large part in maintaining morale and in motivating
employees at all levels. Communications involve strategies, method, and timeliness.
Principle 8: Continual Improvement
Continual improvement should be a permanent objective of an organization and a
major thrust of TQM. Continual improvement drives an organization to be both analytical and
creative in finding ways to become more competitive and more effective at meeting
stakeholder expectations. By using analytical, right measuring quality tools, innovative and
creative thinking to become more efficient and effective, continuous improvement proposals
will be initiated and implemented so that the organization can develop into a higher level of
quality.
Hence, TQM principles themselves become a management system, which can be
categorized into the following three types:
a. Organization Management System
b. Human Resource Management Systems
c. Total Quality Management Systems
For organizations successful implementation of TQM, therefore, requires integration
of organizational behavior, human resource development and organizational development
issues with the quality management practices.
Basic Approaches to TQM
The purpose of TQM is to provide a quality product and/or service to customers
which will, in turn, increase productivity and decrease cost. With a higher quality product
and lower price, competitive position in marketplace will be enhanced. The following series
of events will allow an organization to achieve its objectives of profit and growth with greater
ease. In addition, the workforce will have job security which will create a satisfying place to
work.
1. A committed and involved management should provide long-term top-to-bottom
organizational support.
2. An unwavering focuses on customers, both internally and externally.
3. Effective involvement and utilization of the entire work force.
4. Continuous improvement of business and production process.
5. Treating suppliers as partners.
6. Establish performance measures for the processes.
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Importance/Benefits of Total Quality Management
1. Quality management” ensures superior quality products and services.
2. Quality management is essential for customer satisfaction which eventually leads to
customer loyalty.
3. Quality Management ensures increased revenues and higher productivity for the
organization.
4. Quality management helps organizations to reduce waste and inventory.
Total Quality Management
Total Quality Management Benefits
 Strengthened competitive position
 Adaptability to changing or emerging market conditions and to environmental and
other government regulations
 Higher productivity
 Enhanced market image
 Elimination of defects and waste
 Reduced costs and better cost management
 Higher profitability
 Improved customer focus and satisfaction
 Increased customer loyalty and retention
 Increased job security
 Improved employee morale
 Enhanced shareholder and stakeholder value
 Improved and innovative processes
To Successful Implementation of TQM
Many organizations, especially small ones with a niche, feel comfortable with their
current state. They are satisfied with the amount of work being performed, the profits
realized and the perception that the customers are satisfied. Organizations with this culture
see little need for TQM until they begin to lose market share. Once an organization embarks
on TQM, it faces some obstacles to its successful implementation. Some of the obstacles are
as follows:
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1. Lack of Management Commitment
In order to make an organizational effort successful, there should be substantial
management commitment of management time and organizational resources. The purpose
should be clearly and continuously communicated to all personnel. Management should
consistently apply the principles of TQM.
2. Inability to Change Organizational Culture
Changing an organization’s culture is difficult and requires as much as five years.
Individuals resist change as they become accustomed to doing a particular process and it
becomes the preferred way. Management should understand and utilize the basic concepts
of change which are as follows:
i)
People change when they want to and to meet their own needs.
ii)
Never expect anyone to engage in behavior that serves an organization’s
values unless adequate reason (way) has been given.
iii)
For change to be accepted, people should be moved from a state of fear to
trust.
It is difficult for individuals to change their way of doing things. It is much more
difficult for an organization to make cultural changes. Management by exhortation and
inspiration fails. Speeches, slogans and copings to motivate people remain effective for a
short period of time. Impediments to a cultural change are ineffective communication and
emphasis on short-term results. Organizations that spend more time in planning for the
cultural aspects of implementing a TQM program will improve their chances of success.
3. Improper Planning
All constituents of an organization should be involved in the development of an
implementation plan and any modifications that occur as the plan evolves. Of particular
importance is the two-way communication of ideas among all personnel during the
development of plan and its implementation. The goal should be to achieve customer
satisfaction not to achieve any financial or sales goals. Peterson Products, a metal stamping
firm near Chicago, improved on-time delivery which resulted in a 25% increase in sales.
Focus on quality and the other goals are considered thereafter.
4. Lack of Continuous Training and Education
Training and education is an ongoing process for everyone in an organization. Needs
should be determined and a plan should be developed to achieve those needs. Training and
education are the most effective when senior management conducts the training on the
principles of TQM. Informal training occurs by communicating the TQM efforts to all
personnel on a continual basis.
5. Incompatible Organizational Structure and Isolated Individuals and Departments
Differences between departments and individuals can create implementation
problems. The use of multi-functional terms helps to break down long-standing barriers. The
process of restructuring in order to make an organization more responsive to customer needs
may be desired. Individuals who do not embrace the new philosophy can be required to leave
the organization. Adherence to the six basic concepts will minimize the problem over time.
6. Ineffective Measurement Techniques and Lack of Access to Data and Results
The key characteristics of an organization should be measured in order to make
effective decisions. In order to improve a process, one needs to measure an effect of
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improvement ideas. Access to data and quick retrieval is necessary to make a process
effective.
7. Paying Inadequate Attention to Internal and External Customers
Organizations need to understand the changing needs and expectations of their
customers. Effective feedback mechanisms that provide data for decision making are
necessary for this understanding. A way to overcome this obstacle is to give the right people
a direct access to the customers.
8. Inadequate Use of Empowerment and Teamwork
Whenever possible, teams need to have the proper training and, at least in the
beginning, a facilitator and the team’s recommendations should be followed. Individuals
should be empowered to make decisions affecting the efficiency of their process or the
satisfaction of their customers.
9. Failure to Improve Continually
It is tempting to sit back and rest on your laurels. However, a lack of continuous
improvement of the process, product and/or service will even leave the leader of the pack in
the dust.
References
A. Books
Domingo, Arjhel, Pacual, Marilou and Savellano, Joy. (2017). Total Quality Management Instructional
Manual
Evans,James R. and Lindsay, William M. (2011). The Management and Control of Quality.International
Edition, South-Western, Cengage Learning
Ramasamy, Subbaraj. (2010). Total quality Management. International Edition, Mc-Graw Hill
Dale, B.G., et.al. (2007). Managing quality. 5th edition, Blackwell Publishing Ltd.
Goetsch D.L., Davis S.B.. (2003). Introduction to TQM for Production, Processing and Services. New
Jersey:Prentice Hall
B. Online Resources
www.school-forchanmpions.com/tqm/principles.htm
http://www.mindtools.com/pages/article/newSTR_75.htm
www.slideshare.net/ieeepkhi/total-quality-organizational-change
http:///www.efqm.org
http://www.emeraldinsight.com
http://asq.org/learn-about-quality/total-quality management/overview/overview.html
http://searchcio.techtarget.com/definition/Total-Quality-Management
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https://www.isixsigma.com/methodology/total-quality-management-tqm/introduction-andimplementation-total-quality-management-tqm/
https://www.inc.com/encyclopedia/total-quality-management-tqm.html
Total Quality Management (TQM) http://www.investopedia.com/terms/t/total-qualitymanagement-tqm.asp#ixzz4dXatnz4J
http://www.businessdictionary.com/definition/total-quality-management-TQM.html
http://www.managementstudyguide.com/total-quality-management.htm
https://www.thebalance.com/total-quality-management-tqm-2221200
http://www.lifetime-reliability.com/cms/free-articles/work-quality-assurance/what-is-quality/
https://www.isixsigma.com/methodology/total-quality-management-tqm/eight-elements-tqm/
http://www.managementstudyguide.com/elements-of-total-quality-management.htm
http://asq.org/learn-about-quality/total-quality-management/overview/primary-elements.html
http://www.yourarticlelibrary.com/total-quality-management/10-elements-of-total-qualitymanagement-explained/26182/
https://www.linkedin.com/pulse/20141114160833-362270308-eight-elements-of-total-qualitymamagement
http://study.com/academy/lesson/five-principles-of-total-quality-management-tqm.html
http://asq.org/learn-about-quality/total-quality-management/overview/tqm-gets-results.html
http://www.ugb.ro/etc/etc2014no1/06_Paraschivescu__Caprioara.pdf
http://smallbusiness.chron.com/total-quality-management-strategic-planning-13300.html
https://totalqualitymanagement.wordpress.com/2008/10/04/strategic-quality-planning/
https://bia.ca/quality-excellence-begins-with-strategic-quality-planning/
http://ctb.ku.edu/en/table-of-contents/structure/strategic-planning/vmosa/main
http://pubs.sciepub.com/ajie/1/3/2/
http://mngtguru.com/quality-management-philosophers-and-theircontribution/
https://www.bizmanualz.com/improve-quality/who-are-the-top-quality-gurus.html
www.scribd.com/doc/49579485/contributions-of-management-gurus-to-total-quality-management
https://www.cliffsnotes.com/study-guides/principles-of-management/productivity-and-totalquality-management/major-contributors-to-tqm
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Assessing Learning
ACTIVITY 1
Name: _____________________________________________
Course/Year/Section: ___________________________
Date: __________________
Score: _________________
Directions: Answer the following questions in your own words.
1. Among the many definitions of quality, how would you define quality based on your
own understanding?
2. How would you differentiate quality from value?
3. What are the major types of quality? Explain each briefly.
4. How will you define total quality management in the view point of a) top
management, b) employees, and c) customers?
5. What principles of TQM do you observe are being practiced by the organization,
institution, or business establishment you have visited? Give situation that explains
your observation.
6. What concept of TQM do you think can be practiced or implemented in all types of
organization? Explain your answer.
7. Among the elements of TQM, why ethics, integrity and trust are considered as the
main foundation of the idea?
8. What are the reasons why some organizations failed in the implementation of their
TQM program?
17
Assessing Learning
ACTIVITY 2
Name: _____________________________________________
Course/Year/Section: ___________________________
Date: __________________
Score: _________________
Directions: Read the given article on the definition of quality and come up with a reaction in
relation to your understanding about the concept of the word quality.
The Definition of Quality
Quality is a much more complicated term than it appears. Dictionary definitions are usually
inadequate in helping a quality professional understand the concept. It seems that every quality expert
defines quality is a somewhat different way. There are a variety of perspectives that can be taken in
defining quality (e.g. customer's perspective, specification-based perspective).
Are there
commonalities among these definitions? Is anyone definition "more correct" than the others? Is one
quality expert "right" and the others "wrong"? Quality professionals constantly debate this
question. The editors of Quality Digest say that defining the word "quality" is "no simple
endeavor." They asked, in their December 1999 issue, for readers to send them their definitions of
quality to be gathered and posted on Quality Digest Online.
A modern definition of quality derives from Juran's "fitness for intended use." This definition
basically says that quality is "meeting or exceeding customer expectations." Deming states that the
customer's definition of quality is the only one that matters. So, who is the customer?
External customers usually come to mind first. These are the people outside our organization
who receive our goods and services. But even here there is some confusion. If we sell our products to
a wholesaler, is he our only customer? How about the retailer and the ultimate consumer?
Internal customers are often forgotten or taken for granted. In an assembly line operation,
the next station downstream from ours is an internal customer for our work. The Purchasing Dept.
who receives a control report from the Accounting Department is the Accounting Department’s
Internal Customer. Second grade teachers are internal customers for first grade teachers.
Now, let's discuss meeting or exceeding customer expectations. Meeting customer
expectations results in a satisfied customer. But where is the competitive advantage in that? Have you
eaten in a restaurant in the past month? If so, did you select a restaurant that you expected would
dissatisfy you? Probably not. You selected from a list of restaurants that you expected would satisfy
you. So, satisfying customers merely keeps you in the game. Delighting customers (exceeding
customer expectations) is where competitive advantage can be found. Restaurants that deliver larger
than expected portions or lower than expected prices or better than expected service or better than
expected ambiance (order winners) have a competitive advantage over restaurants that simply satisfy
customers (possess only order qualifiers).
A number of scholars in the quality field have developed lists of dimensions that define quality
for a product and/or a service. David Garvin developed a list of 8 dimensions of product quality. Evans
and Lindsay provide a list of 8 dimensions of service quality. These are general lists and serve as good
starting points. But, current research indicates that in terms of service quality, the dimensions are
different for different industries. So Evans and Lindsay's list may not apply equally well to, for
example, health care services and food services. Parasuraman, et. al. developed a general list of 5
18
service dimensions that they tested in 4 types of service industry, but the applicability of these
dimensions in other industries is unknown.
Developing a list of quality dimensions for a specific service industry requires determining
what is important to customers. Methodologies which are appropriate for this would include focus
groups and surveys. The quality dimensions for hospitals (KQCAH Scale) that are shown in the Lesson
1 Presentation were developed using focus groups conducted with recently discharged patients and
their families, and with hospital personnel. Knowledge of these dimensions facilitates the
measurement of patient satisfaction by hospitals. Hospitals know that they are measuring dimensions
that are important to patients.
A Few Definitions:
Quality assurance - (QA) is a broad concept that focuses on the entire quality system including
suppliers and ultimate consumers of the product or service. It includes all activities designed to
produce products and services of appropriate quality.
According to ASQ, QA includes all those planned or systematic actions necessary to provide
adequate confidence that a product or service will satisfy given needs. [Source: ASQ Statistics
Division, Glossary & Tables for Statistical Quality Control, 1983].
Quality control - (QC) has a narrower focus than quality assurance. Quality control focuses on
the process of producing the product or service with the intent of eliminating problems that might
result in defects.
According to ASQ, QC includes the operational techniques and the activities which sustain a
quality of product or service that will satisfy given needs; also the use of such techniques and
activities. [Source: ASQ Statistics Division, Glossary & Tables for Statistical Quality Control, 1983].
Quality management - is the totality of functions involved in the determination and
achievement of quality (includes quality assurance and quality control). [Source: ASQ Statistics
Division, Glossary & Tables for Statistical Quality Control, 1983].
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UNIT 2. TOTAL QUALITY PARADIGM
Overview
This unit presents a brief history on how does TQM evolved as well as the renowned
quality gurus and their works to the management and success of modern organizations.
Primarily, this unit aims to familiarize you to various TQM models, tools, techniques and
practices that are being implemented and used by different organizations which contributed
to their continuous improvement, sustainable growth, development and success.
Learning Objectives
At the end of the unit, I am able to:
1. develop an understanding on quality management philosophies and frameworks;
2. know the prerequisite of evolution of TQM and significance of quality gurus’ works
to the management of modern organizations;
3. develop in-depth knowledge on various tools and techniques of quality
management and its application in both manufacturing and service industry; and
4. be able to use quality management methods in analyzing and solving problems of
an organization.
Setting up
Name: _____________________________________________
Course/Year/Section: ___________________________
Date: __________________
Direction: Make a simple research on any existing/operational organization or
products/services available in the market that obtained or passed any of the international
quality awards. Come up with a report by presenting a detailed information of the award
received by the organization/product. Include also in your report a background information,
and even picture of the organization or of the product that possesses an international quality
award.
My Answer:
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Lesson Proper
History and Evolution of Total Quality Management
The roots of Total Quality Management (TQM) can be traced back to early 1920s when
statistical theory was first applied to product quality control. This concept was further
developed in Japan in the 40s led by Americans, such as Deming, Juran and Feigenbaum. The
focus widened from quality of products to quality of all issues within an organization – the
start of TQM.
1930S TQM HISTORY
The history of TQM starts with Elton
Mayo’s Hawthorne experiments from 1927
through 1932. These experiments showed that
workers participation in decision making
improves productivity.
This change in behavior from the
employees is now called the Hawthorne effect.
It basically states that when workers
are involved in studies or decision making,
productivity increases. Also during the
1930s, Walter Shewhart developed control
charts which are a statistical method to control
processes.
1950S TQM HISTORY
In the 1950s Edward Deming taught statistical
methods and Dr Juran taught quality management
techniques to the Japanese. Armand Feigenbaun wrote
Total Quality Control. This became the first work that
started many Total Quality Management theories.
In 1954 Abraham Maslow created a pyramid of
self-actualization needs. In terms of work productivity,
the lower levels of needs must be met prior to
employees performing at higher levels. The needs in
order are:
1. Physiological which is to eat, sleep, and have shelter
2. Safety which is to have economic and physical security
3. Belonging which is to be accepted by family and friends
4. Esteem which is to be held in high regard
5. Self actualization which is to achieves ones best
1960S TQM HISTORY
In the 1960s Douglas McGregor formed the Theory X and Theory
Y leadership models. A Theory X leader applies a negative approach to
management. They assume most workers really do not like to work and
try to avoid work. A Theory Y leader believes workers want to do a good
job. They believe workers will offer solutions to problems and
participate in problem solving events. An involved employee is a
productive employee.
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1970S HISTORY OF TQM
In 1968 the Japanese shaped the phrase Total Quality Control.
TQC is a companywide quality control philosophy. This philosophy
drove Japan to the world quality leader in the 1970s. For the most part,
Japan remains the quality leader. However the world has significantly
closed the gap.
1980S HISTORY OF TQM
In the 1980 the U.S. Navel Air Systems coined the TQM phrase.
The Navy based most of the principles on the Japanese Total Quality
Control philosophy.
Many companies adopted TQM during the 80s. TQM spread
like wild fire. Many companies saw significant gains in productivity.
However many companies started the program and failed miserably
because they weren't willing to change.
1990S HISTORY OF TQM
In the 1990s' TQM evolved. Experts introduce new methods
that supported TQM. These include Lean Manufacturing and Six
Sigma. Organizations could now become certified to ISO 9001. The
Malcolm Baldridge National Quality Award (MBNQA) was created for
the US. MBNQA auditors give this award to companies who show the
most outstanding quality management practices.
2000S HISTORY OF TQM
In the 2000s, ISO revised ISO 9001 to focus more on business
planning, quality management and continuous improvement. Other
certification standards were created including AS9100 for aerospace,
TS16949 for automotive, ISO 14001 for environmental, TL9000 for
electronics, and ISO 17025 for laboratories. These standards all
include the ISO 9001.
2010S HISTORY OF TQM
ISO revised the ISO 9001 standard in 2015 to include Knowledge management.
Although Six Sigma started in the 1990s, it became the prevalent problem solving process
used by Quality professionals. The term Lean Six Sigma was born. A combination of Lean
thinking, 5S, and Six Sigma forms the core of Lean Six Sigma. In addition experts start
using Kaizen, Gemba, and Hoshin Kanri concepts.
22
Total Quality Management Gurus and Their Contribution
Today the concept of Quality Management has been widely accepted all over the
world. This concept is led by several philosophers/researchers and Gurus. Contributors in
the quality management have realized need of modern industry in its true spirits and
dimensions. Pioneers or contributors of quality have either originated new ideas or modified,
expanded old ideas and propounded significance for the benefits of industry and society at
large. It is important to take note of renowned pioneers in the quality management, with their
philosophy and concepts. This topic introduces the quality management philosophers and
their contribution. Contributions of some of the pioneers in quality management are given
below.
1. Dr. WALTER SHEWHART - First of the Top Ten Quality Gurus is Walter Shewhart. Dr.
Shewhart developed the Plan, Do, Check, Act (PDCA) cycle (known as “Plan-Do-Study-Act” in
some circles) as well as theories of process control and the Shewhart transformation process.
2. Dr. W. EDWARDS DEMING - Dr. Deming developed his complete philosophy of
management, which he encapsulated into his “fourteen points” and the “seven deadly
diseases of management”. He advanced the state of quality, originally based on work done by
Shewhart with his explanations of variation, use of control charts, and his theories on
knowledge, psychology and variation. Deming greatly helped to focus the responsibility of
quality on management and popularized the PDCA cycle, which led to it being referred to as
the “Deming Cycle”.
Deming opined that by embracing certain principles of the management,
organizations can improve the quality of the product and concurrently reduce costs.
Reduction of costs would include the reduction of waste production, reducing staff attrition
and litigation while simultaneously increasing customer loyalty. The key, in Deming’s
opinion, was to practice constant improvement, and to imagine the manufacturing process as
a seamless whole, rather than as a system made up of incongruent parts.
3. Dr. JOSEPH M. JURAN - Dr. Juran developed the quality trilogy – quality planning, quality
improvement, and quality control. Quality management plans quality improvements that
raise the level of performance, which then must be controlled or sustained at that level in
order to start the cycle again.
Born in 1904, Joseph Juran was a Romanian-born American engineer and
management consultant of the 20th century, and a missionary for quality and quality
management. Like Deming, Juran's philosophy also took root in Japan. He stressed on the
importance of a broad, organizational-level approach to quality – stating that total quality
management begins from the highest position in the management, and continues all the way
to the bottom.
4. ARMAND V. FEIGENBAUM - Mr. Feigenbaum developed the idea of total quality control
based on three steps to quality consisting of quality leadership, modern quality technology,
and an organizational commitment to quality.
5. Dr. KAORU ISHIKAWA - Dr. Ishikawa developed the Ishikawa diagram, also known as the
fishbone or cause-effect diagram. He was known for popularizing the seven basic tools of
quality and the philosophy of total quality.
6. Dr. GENICHI TAGUCHI - Dr. Taguchi developed the “Taguchi methodology” of robust
design, which focused on making the design less sensitive to variation in the manufacturing
23
process, instead of trying to control manufacturing variation. This idea of “designing in
quality” has become an important tenant of six sigma today.
7. SHIGEO SHINGO - Shigeo Shingo developed lean concepts such as Single Minute Exchange
of Die (SMED) or reduced set-up times instead of increased batch sizes, as well as Poka-Yoke
(mistake proofing) to eliminate obvious opportunities for mistakes. He also worked with
Taiichi Ohno to refine Just-In-Time (JIT) manufacturing into an integrated manufacturing
strategy, which is widely used to define the lean manufacturing used in the Toyota production
system (TPS).
8. PHILIP B. CROSBY - Philip B. Crosby was the quality guru that developed the idea of
“quality is free” which asserts that implementing quality improvement pays for itself through
the savings from the improvement, increased revenue from greater customer satisfaction,
and the improved competitive advantage that results. He popularized “zero defects” to define
the goal of a quality program as the elimination of all defects and not the reduction of defects
to an acceptable quality level.
Born in 1926, Philip Crosby was an author and businessman who contributed to
management theory and quality management practices. He started his career in quality much
later than Deming and Juran. He founded Philip Crosby and Associates, which was an
international consulting firm on quality improvement.
9. DR. ELIYAHU M. GOLDRATT - Dr. Goldratt developed the Theory of Constraints which
focuses on a single element in a process chain as having the greatest leverage for
improvement (i.e., “1% can have a 99% impact”). This compares to the Pareto principle which
states that 20% of the factors have an 80% effect on the process.
10. TAIICHI OHNO - Last of the Top Ten Quality Gurus is Taiichi Ohno. He developed
the seven wastes (muda), which are used in lean to describe non-value-added activity. He
developed various manufacturing improvements with Shigeo Shingo that evolved into the
Toyota Production System.
Models of Total Quality Management
Customers and their feedbacks are the foundation of every Total Quality Management
model. In simpler words, Total Quality Management begins with understanding customers,
their needs and what they expect from the organization. Design foolproof processes and
systems to collect customer data, information to further study, analyze and act accordingly.
Such activities not only help you understand your target customers but also predict customer
behavior.
As a business marketer, you need to know the age group of your target customers,
their preferences and needs. Employees need to know how their products or services can
fulfill customer needs and demands.
Total Quality Management model requires meticulous planning and research. Every
total quality management model integrates customer feedbacks with relevant information
and plans accordingly to design effective strategies to achieve high quality products.
Following are the various models of total quality management:
1. Deming Application Prize
2. Malcolm Baldrige Criteria for Performance Excellence
3. European Foundation for Quality Management, and
4. ISO quality management standards
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Strategies formulated to yield better quality products need to be evaluated and
reviewed from time to time. Remember, customers are satisfied only when products meet
their expectations, fulfill their needs and are value for money. Their overall experience with
the organization needs to be pleasant for them to be happy and return to the organization
even the next time.
Continuous improvements, changes and modifications in the existing processes
according to customer expectations are necessary to yield higher profits. Processes can’t be
same always. If a customer complaints about a particular product of yours, find out the root
cause of problem. Understand and implement necessary total quality management models to
rectify the problem, remove the defect for a high quality product.
The successful implementation of Total quality Management model needs extensive
planning and most importantly participation of every single member who is benefitted out of
the organization (Management, suppliers, clients and even customers). Without the
participation of each and every employee, total quality management model would be a
complete failure.
Total Quality Management model begins with research and collecting information
about end-users followed by planning and full participation of employees for successful
implementation. Top level Management needs to make other team members aware of the
benefits of total quality management process, importance of quality to survive in the long run
and how they can implement various TQM models by prioritizing their customers and their
feedbacks.
Quality Management Tools and Techniques
There are several techniques that can be used in the quality planning process but it
is very unlikely that any individual project manager would be expected to be skilled in using
all of them.
A better approach would be to have an appreciation of what each one involves and
then to select those that best suit the project and delegate the work to project team members
who have expertise in that technique.
A cost-benefit analysis is by far the most important decision making tool and
involves nothing more than common sense and judgment based on experience. All quality
management activities have a related cost and that cost must be justified in terms of benefit
to the project sponsor and the organization as a whole.
No activities should be performed that would equal or cost more than the expected
benefits. It should show that the level of quality is viable from a cost perspective and justify
its inclusion in the quality plan.
The cost of quality includes all costs incurred over the life of the product and looks
at the costs of conformance to quality standards and the costs of nonconformance. For
example, the proposed quality standard for the production of a metal pressing might mandate
tolerance of 1mm. In other words the finished part can be up to 1mm bigger or smaller than
the specification.
The costs of conformance include both the prevention and appraisal costs incurred
in conforming to this standard (training, equipment, additional time, testing and inspections).
25
The costs of nonconformance include internal and external costs that would be
incurred if this quality standard were not achieved. These would include the costs of
reworking or scrapping the failed parts (internal cost) and the costs associated with sending
out parts that were unacceptable to the customer.
Project decisions can impact operational costs of quality as a result of product
returns, warranty claims, and recall campaigns. Therefore, due to the temporary nature of a
project, the sponsoring organization may choose to invest in product quality improvement,
especially defect prevention and appraisal, to reduce the external cost of quality.
Most of the techniques described here are based on statistical analysis and are most
appropriate where the project deliverables are products that can be measured in some way.
For example, if parts are being produced on a production line then it will be straightforward
to measure dimensions, tolerances, failure rates, etc. However, many project deliverables are
not like this and it is not possible to collect this type of data. For example, anything that
provides a user 'experience' can be difficult to measure in this way.
The best approach is to be aware of what tools and techniques exist and to select
those that are appropriate for the project you are working on. It may even be possible to adapt
26
some of them in order to provide useful data about quality even if you are not making a
product that can easily be measured.
Quality Management Tools
A project manager should have an appreciation of what quality techniques are
available so that they are able to select those that best suit the project. Implementation of the
technique can then be delegated to project team members who have the relevant expertise in
that technique. These techniques may include the following:
1. Cause and Effect Diagrams
Also called Ishikawa diagrams or fishbone diagrams, they illustrate how various
factors might be linked to potential problems or effects. Factors are usually grouped into
major categories as shown:
 People - Anyone involved with the process
 Methods - How the process is performed including: policies, procedures, rules,
regulations and laws
 Machines - Any equipment, computers, tools, etc. required to accomplish the job
 Materials - Raw materials, parts, pens, paper, etc. used to produce the final product
 Measurements - Data generated from the process that is used to evaluate it's quality
 Environment - The conditions, such as location, time, temperature, and culture in
which the process operates
This is not a statistical technique and is therefore applicable to almost all types of
project. It does have its critics precisely because is not quantitative and requires a lot of
subjective analysis and judgment.
Its strengths are that it can help you to make sense of a situation where there are a
lot of variables that are interacting with each other, none of which are quantifiable. It is also
a powerful visual tool when you are trying to explain your analysis to others.
27
The fishbone diagram identifies many possible causes for an effect or problem. It can
be used to structure a brainstorming session. It immediately sorts ideas into useful
categories.
When to Use a Fishbone Diagram:
 When identifying possible causes for a problem.
 Especially when a team’s thinking tends to fall into ruts.
2. Flowcharts
This is a graphical representation of a process showing the relationships among
process steps. There are many styles, but all process flowcharts show: activities, decision
points, and the order of processing.
Flowcharting can help the project team anticipate quality problems that might occur
and this awareness can result in the development of test procedures or approaches for
dealing with them.
A flowchart is common type of chart that represents an algorithm or process, showing
the steps as boxes of various kinds, and their order by connecting them with arrows.
There are many different types of flowcharts, and each type has its own repertoire of
boxes and notational conventions.
The two most common types of boxes in a flowchart are: a processing step
(usually called an activity) that is denoted as a rectangular box, and a decision, which
is usually denoted as a diamond.
Flowcharts are used in designing and documenting complex processes. Like other
types of diagram, they help visualize what is going on and thereby help the viewer to
understand a process, and perhaps also find flaws, bottlenecks, and other less-obvious
features within it.
3. Check sheets
These are also known as tally sheets and may be used as a checklist when gathering
data. They are used to organize facts in a manner that will facilitate the effective collection of
useful data about a potential quality problem and are especially useful for gathering
attributes data while performing inspections to identify defects.
Example:
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A check sheet which is also called defect concentration diagram, is a structured,
prepared form for collecting and analyzing data. This is a generic tool that can be adapted for
a wide variety of purposes.
When to Use a Check Sheet:
 When data can be observed and collected repeatedly by the same person or at the
same location.
 When collecting data on the frequency or patterns of events, problems, defects,
defect location, defect causes, etc.
 When collecting data from a production process.
4. Pareto Diagram
This is a special type of histogram where the values being plotted are arranged in
descending order. The graph is accompanied by a line graph that shows the cumulative totals
of each category.
A Pareto chart is a bar graph. The lengths of the bars represent frequency or cost
(time or money), and are arranged with longest bars on the left and the shortest to the right.
In this way the chart visually depicts which situations are more significant.
When to Use a Pareto Chart:
 When analyzing data about the frequency of problems or causes in a process.
 When there are many problems or causes and you want to focus on the most
significant.
 When analyzing broad causes by looking at their specific components.
 When communicating with others about your data.
Left vertical axis shows the frequency of occurrence, cost or other important unit of
measure. Right vertical axis is the cumulative percentage of the total.
In quality control, the Pareto chart often represents the most common sources of
defects, the highest occurring type of defect, or the most frequent reasons for customer
complaints, etc. The Pareto chart was developed to illustrate the 80-20 Rule, which states that
80 percent of the problems stem from 20 percent of the various causes.
29
5. Histogram
This is a vertical bar chart showing how often a particular variable state occurred,
with the height of each column representing the relative frequency. Histograms are useful
when presenting project data to stakeholders as they can give a clear indication of which
problems are the most important to tackle.
A frequency distribution shows how often each different value in a set of data occurs.
A histogram is the most commonly used graph to show frequency distributions. It looks very
much like a bar chart, but there are important differences between them.
When to Use a Histogram:
 When the data are numerical.
 When you want to see the shape of the data’s distribution, especially when
determining whether the output of a process is distributed approximately normally.
 When analyzing whether a process can meet the customer’s requirements.
 When analyzing what the output from a supplier’s process looks like.
 When seeing whether a process change has occurred from one time period to another.
 When determining whether the outputs of two or more processes are different.
 When you wish to communicate the distribution of data quickly and easily to others.
6. Control Charts
These answer the question: 'Is this process variance within acceptable limits?' The
pattern of data points on a control chart may reveal random fluctuating values, sudden
process jumps, or a gradual trend in increased variation. By monitoring the output of a
process over time, a control chart can help assess whether the application of process changes
resulted in the desired improvements.
When a process is within acceptable limits it is in control and does not need to be
adjusted. Conversely, when a process is outside acceptable limits, the process should be
adjusted. Seven consecutive points above or below the central line indicate a process that is
out of control. The upper control limit and lower control limit are usually set at (plus or
minus) three Sigma, where one Sigma is one standard deviation.
Although used most frequently to track repetitive activities required for producing
manufactured lots, control charts may also be used to monitor cost and schedule variances,
volume, and frequency of scope changes, or other management results to help determine if
the project management processes are in control.
30
The control chart is a graph used to study how a process changes over time. Data are
plotted in time order. A control chart always has a central line for the average, an upper line
for the upper control limit and a lower line for the lower control limit. These lines are
determined from historical data. By comparing current data to these lines, you can draw
conclusions about whether the process variation is consistent (in control) or is unpredictable
(out of control, affected by special causes of variation).
When to Use a Control Chart:
 When controlling ongoing processes by finding and correcting problems as they
occur.
 When predicting the expected range of outcomes from a process.
 When determining whether a process is stable (in statistical control).
 When analyzing patterns of process variation from special causes (non-routine
events) or common causes (built into the process).
 When determining whether your quality improvement project should aim to prevent
specific problems or to make fundamental changes to the process.
7. Scatter Diagram
These use Cartesian coordinates to display values for two variables for a set of data.
The data is displayed as a collection of points, each having the value of one variable
determining the position on the horizontal axis and the value of the other variable
determining the position on the vertical axis. A scatter diagram can suggest various kinds of
correlations between variables with a certain confidence level. Correlations may be:
A) Positive (rising) - If the pattern of dots slopes from lower left to upper right, it suggests
a positive correlation.
B) Negative (falling) - If the pattern of dots slopes from upper left to lower right, it suggests
a negative correlation.
C) Null (uncorrelated).
A line of best fit can be drawn in order to study the correlation between the variables.
One of the most powerful aspects of a scatter diagram is its ability to show nonlinear
relationships between variables.
The scatter diagram graphs pairs of numerical data, with one variable on each axis, to
look for a relationship between them. If the variables are correlated, the points will fall along
a line or curve. The better the correlation, the tighter the points will hug the line.
31
When to Use a Scatter Diagram:
 When you have paired numerical data.
 When your dependent variable may have multiple values for each value of your
independent variable.
 When trying to determine whether the two variables are related, such as…
 When trying to identify potential root causes of problems.
 After brainstorming causes and effects using a fishbone diagram, to determine
objectively whether a particular cause and effect are related.
 When determining whether two effects that appear to be related both occur with the
same cause.
 When testing for autocorrelation before constructing a control chart.
8. Benchmarking
Benchmarking is simply a quality standard reference that is used for the current
project. This may be a benchmark used within the performing organization, or one that is
used across a specific industry. It involves comparing actual or planned project practices to
those of comparable projects to identify best practices, generate ideas for improvement, and
provide a basis for measuring performance. The value of using this technique is to compare
the current project's quality standards with those of other similar projects.
What to
Benchmar
k (1)
Understand
Current
Performance
(2)
Study
Others
(4)
Plan
(3)
Learn
From
Data
(5)
Use
Findings
(6)
Process of Benchmarking
Organizations that benchmark, adapt the process to best fit their own needs and
culture. Although number of steps in the process may vary from organization to organization,
the following six steps contain the core techniques:
32
9. Quality Meetings
Meetings involve people who are responsible for quality management including the
project manager, the project sponsor, selected project team members, selected stakeholders,
anyone with responsibility for any of the quality management processes, and others as
needed. Collective decision-making is very important area of project management that can
make or break this part of the project. Almost all of the processes that for part of project time
management will involve meetings between the project manager, the team and other
stakeholders in order to make decisions about the activity definitions and associated
estimates. How well these meetings are conducted will have a major impact on how smoothly
the project runs.
Key Points:
A project manager should have an appreciation of what quality techniques are
available so that they are able to select those that best suit the project. Implementation of the
technique can then be delegated to project team members who have the relevant expertise in
that technique.
Principles of Total Quality Management Methodology
Total Quality Management (TQM) is a companywide philosophy that focuses on
customer satisfaction. Every business improvement, quality improvement, or continuous
improvement process is part of TQM Methodology.
TQM is not a flavor of the month management. When you are a TQM organization, you
breathe TQM. TQM companies do not just discuss TQM, they walk TQM. They live TQM. When
you apply the principles of TQM, TQM is inherent to all management decisions.
A TQM company understands their customers and needs. A TQM company works
with their vendors and teaches them TQM tools. A TQM company constantly trains their
employees and helps them improve their lives.
A TQM company thinks long term. Short term profits are not the immediate concern.
Customer satisfaction is the focus. Customers included both external, internal, stake holders
and share holders.
The following are the ten (10) principles of TQM Methodology
1. 100% Commitment 6. Management and Monitoring
2. Customer Driven
7. Continual Improvement
3. Detailed Process
8. Frequent Auditing
4. Improvement Teams
9. Employee Empowerment
5. Long Term Thinking
10. Measuring and Controlling
7 Quality Management Principles According to ISO
The next discussion now introduces the seven quality management principles (QMPs)
adopted by ISO 9000, ISO 9001 and related ISO quality management standards. One of the
definitions of a “principle” is that it is a basic belief, theory or rule that has a major influence
33
on the way in which something is done. “Quality management principles” are a set of
fundamental beliefs, norms, rules and values that are accepted as true and can be used as a basis
for quality management.
The QMPs can be used as a foundation to guide an organization’s performance
improvement. They were developed and updated by international experts of ISO/TC 176,
which is responsible for developing and maintaining ISO’s quality management standards.
The discussion below provides for each QMP:
• Statement: Description of the principle
• Rationale: Explanation of why the principle is important for the organization
• Key benefits: Examples of benefits associated with the principle
• Actions you can take: Examples of typical actions to improve the organization’s
performance when applying the principle.
The seven quality management principles are:
QMP 1 – Customer focus
QMP 5 – Improvement
QMP 2 – Leadership
QMP 6 – Evidence-based decision making
QMP 3 – Engagement of people
QMP 7 – Relationship management
QMP 4 – Process approach
These principles are not listed in priority order. The relative importance of each
principle will vary from organization to organization and can be expected to change over
time.
This document provides a general perspective on the quality management principles
underlying ISO’s quality management standards. It gives an overview of these principles and
shows how, collectively, they can form a basis for performance improvement and
organizational excellence. There are many different ways of applying these quality
management principles. The nature of the organization and the specific challenges it faces
will determine how to implement them. Many organizations will find it beneficial to set up a
quality management system based on these principles.
Total Quality Management Practices
Considering the practices of TQM as discussed in six empirical studies; Cua, Mckone,
and Schroeder (2001) identified the nine common TQM practices as:
1. Cross-functional product design
6. Committed leadership
2. Process management
7. Strategic planning
3. Supplier quality management
8. Cross-functional training
4. Customer involvement
9. Employee involvement
5. Information feedback
Additional TQM Practices:
 Zero defects
 Six Sigma
 Continuous improvement process/ continual improvement process (abbreviated
as CIP or CI)
 PDCA (Plan-Do-Check-Act) Cycle
 Approaches to Quality-Kaizen
 Quality Circles
34
References
A. Books
Domingo, Arjhel, Pacual, Marilou and Savellano, Joy. (2017). Total Quality Management Instructional
Manual
Evans,James R. and Lindsay, William M. (2011). The Management and Control of Quality.International
Edition, South-Western, Cengage Learning
Ramasamy, Subbaraj. (2010). Total quality Management. International Edition, Mc-Graw Hill
Dale, B.G., et.al. (2007). Managing quality. 5th edition, Blackwell Publishing Ltd.
Goetsch D.L., Davis S.B.. (2003). Introduction to TQM for Production, Processing and Services. New
Jersey:Prentice Hall
C. Online Resources
www.school-forchanmpions.com/tqm/principles.htm
http://www.mindtools.com/pages/article/newSTR_75.htm
www.slideshare.net/ieeepkhi/total-quality-organizational-change
http:///www.efqm.org
http://www.emeraldinsight.com
http://asq.org/learn-about-quality/total-quality management/overview/overview.html
http://searchcio.techtarget.com/definition/Total-Quality-Management
https://www.isixsigma.com/methodology/total-quality-management-tqm/introduction-andimplementation-total-quality-management-tqm/
https://www.inc.com/encyclopedia/total-quality-management-tqm.html
Total Quality Management (TQM) http://www.investopedia.com/terms/t/total-qualitymanagement-tqm.asp#ixzz4dXatnz4J
http://www.managementstudyguide.com/total-quality-management.htm
https://www.thebalance.com/total-quality-management-tqm-2221200
http://www.lifetime-reliability.com/cms/free-articles/work-quality-assurance/what-is-quality/
https://www.isixsigma.com/methodology/total-quality-management-tqm/eight-elements-tqm/
http://www.managementstudyguide.com/elements-of-total-quality-management.htm
http://asq.org/learn-about-quality/total-quality-management/overview/primary-elements.html
http://www.yourarticlelibrary.com/total-quality-management/10-elements-of-total-qualitymanagement-explained/26182/
https://www.linkedin.com/pulse/20141114160833-362270308-eight-elements-of-total-qualitymamagement
http://study.com/academy/lesson/five-principles-of-total-quality-management-tqm.html
http://asq.org/learn-about-quality/total-quality-management/overview/tqm-gets-results.html
http://www.ugb.ro/etc/etc2014no1/06_Paraschivescu__Caprioara.pdf
http://smallbusiness.chron.com/total-quality-management-strategic-planning-13300.html
https://totalqualitymanagement.wordpress.com/2008/10/04/strategic-quality-planning/
https://bia.ca/quality-excellence-begins-with-strategic-quality-planning/
http://ctb.ku.edu/en/table-of-contents/structure/strategic-planning/vmosa/main
http://pubs.sciepub.com/ajie/1/3/2/
http://mngtguru.com/quality-management-philosophers-and-theircontribution/
https://www.bizmanualz.com/improve-quality/who-are-the-top-quality-gurus.html
www.scribd.com/doc/49579485/contributions-of-management-gurus-to-total-quality-management
https://www.cliffsnotes.com/study-guides/principles-of-management/productivity-and-totalquality-management/major-contributors-to-tqm
35
Assessing Learning
ACTIVITY 3
Name: _____________________________________________
Course/Year/Section: ___________________________
Date: __________________
Score: _________________
Directions: Answer the following questions in your own words.
1. How the concept of TQM evolved?
2. Among the TQM gurus, for you, who among them contributed and really made an
impact in the development of TQM concept? Explain your answer.
3. Give and explain briefly the four models of total quality management discussed in this
chapter. What importance do you think those models give to the firm as well to their
clients/customers?
4. As a student, what philosophy of our TQM gurus do you think a student like you can
apply or practice in his/her studies?
5.
In Crosby’s Zero Defects principle, do you think an organization, no matter what their
nature or scale was, is capable of practicing it? If your answer is yes, what makes you
say so? If no, explain your point on the conditions that an organization must have for
them to practice that principle.
6. If in the near future you would be able to established your own business or create an
organization, what quality award do you aspire to have? Explain why.
7. Explain what your idea on the given statement is: “The successful implementation of
Total Quality Management model needs extensive planning and most importantly
participation of every single member who is benefitted out of the organization.”
8. Among the seven (7) deadly diseases of management, according to Deming, which
one do you think is the worst or most terrible? Why?
36
Assessing Learning
ACTIVITY 4
Name: _____________________________________________
Course/Year/Section: ___________________________
Date: __________________
Score: _________________
Directions: From the list of our 10 TQM Gurus, select 5 and look for a picture and their famous
quotes in the internet about TQM. Come up with a reaction or generalization regarding their
well-known quotes after presenting their picture and quotes.
My Answer:
37
Assessing Learning
ACTIVITY 5
Name: _____________________________________________
Course/Year/Section: ___________________________
Date: __________________
Score: _________________
Directions: From the various models of total quality management enumerated below, make a
research on what are those models of TQM. Include everything you think is deemed
important to fully present on what are those models of TQM all about.
The Models of TQM
1. Deming Application Prize
2. Malcolm Baldrige Criteria for Performance Excellence
3. European Foundation for Quality Management, and
4. ISO quality management standards
My Answer:
38
Assessing Learning
ACTIVITY 6
Name: _____________________________________________
Course/Year/Section: ___________________________
Date: __________________
Score: _________________
Directions: Do a research in the internet about the following topics given below. Your research
must include a discussion/explanation on the concept, use, illustration (sample picture), type
(if there is) and etc. Out of your research, you can make a compilation of additional reading
material for the given topics in our Unit 2.
A. Principles of TQM Methodology
1. 100% Commitment 2. Customer Driven
3. Detailed Process
4. Improvement Teams
5. Long Term Thinking
6. Management and Monitoring
7. Continual Improvement
8. Frequent Auditing
9. Employee Empowerment
10. Measuring and Controlling
B. The seven quality management principles according to ISO
QMP 1 – Customer focus
QMP 5 – Improvement
QMP 2 – Leadership
QMP 6 – Evidence-based decision making
QMP 3 – Engagement of people
QMP 7 – Relationship management
QMP 4 – Process approach
C. TOTAL QUALITY MANAGEMENT PRACTICES
1. Cross-functional product design
2. Process management
3. Supplier quality management
4. Customer involvement
5. Information feedback
6. Committed leadership
7. Strategic planning
8. Cross-functional training
9. Employee involvement
Additional TQM Practices:
 Zero defects
 Six Sigma
 Continuous improvement process/ continual improvement process (abbreviated
as CIP or CI)
 PDCA (Plan-Do-Check-Act) Cycle
 Approaches to Quality-Kaizen
 Quality Circles
39
UNIT 3. ORGANIZATION’S COMMITMENT TO SATISFY CUSTOMERS’ NEEDS
Overview
This unit presents to you the concept or definition of the word customer. Since one
fact that most business-minded people would agree on is that, the most important aspect of
any business organization is its customers. Now the question is, who really is the
organization’s customer and what must the organization do to continuously satisfy and gain
the loyalty of their customers? Generally, this unit will help you develop competencies
needed to determine and examine different factors that can influence consumers’ satisfaction
to be used in the organizations’ TQM operation.
Learning Objectives
At the end of the unit, I am able to:
1. know the various business excellence models and be able to assess organization’s
performance making reference to their criteria; and
2. select and apply appropriate TQM tools & techniques in identifying customer needs
as well as the quality impact that will be used as inputs in TQM methodologies
Setting up
Name: _____________________________________________
Course/Year/Section: ___________________________
Date: __________________
Direction: Conduct a simple interview to 10 individuals of the same market group. Ask for the
different factors that keep them loyal and continuously patronizing a specific product/
service/ organization. Write your findings including a brief background of the characteristics
of the market group you have interviewed.
My Answer:
40
Lesson Proper
Internal and External Customer
The types of customers for any business vary by several points. One important thing
to note is that they are found practically everywhere. Most often, they are found outside the
organization; people who are in need of something a company produces. This is what most
people think of when they hear the word ‘customer’, but they can also be a part of your
organization, which may sound tricky.
Your customers don't only include people who enter your establishment or place
orders by telephone or the Internet. Customers also include those who work every day to
make your operation a success: your employees. While external and internal customers may
fulfill different roles, both are critical to the viability of your business.
Identification
An external customer is someone who uses your company's products or services
but is not part of your organization. If you own a retail store, for example, an external
customer is an individual who enters your store and buys merchandise. An internal
customer is any member of your organization who relies on assistance from another to fulfill
her job duties, such as a sales representative who needs assistance from a customer service
representative to place an order.
External Customer Significance
External customers are essential to the success of any business, as they provide the
revenue stream through their purchases that the enterprise needs to survive. Satisfied
external customers often make repeat purchases as well as refer your business to other
people they know. A customer who suffers through a negative experience with a business,
such as being treated rudely by an employee, can also hinder a business by dissuading others
from patronizing it.
Internal Customer Significance
While internal customers may not necessarily purchase the products or services
offered by their employer, the internal customer relationship also plays a key role in the
business's success. In the sales example, the salesperson who does not work well with
customer service may have greater difficulty placing orders or obtaining answers to his
external clients' questions, resulting in a poor level of service. Strained internal relationships
can also adversely affect company morale.
Key Differences:
1. Internal Customers are those individuals, division or employee who purchases the
product of the company / organization being the part of the company in a way or
other. External Customers are those individuals who do not belong to company /
organization in any aspect or may be the end user of the product.
2. Internal customers are associated with the organization while external customers are
not associated with the organization or company.
3. Internal customers know more about the pros and cons of the product as compare to
the External customers.
4. Internal customers get the product on cheap rate as compare to the external
customers.
41
5. Internal customer may be the beneficiary in profit for the sale of the product but
external customer is not the beneficiary in profit for the sale of the product of any
organization.
6. Internal customer may buy the product for not using by him but External customer
buys the product for its own use.
7. Internal customer may the middle man between the company and end user but
external customer may be the end user.
8. Internal customer knows well about the actual manufacturing cost and thus they
bargain with the organization to get the product on reasonable price while External
customer is unable to bargain as he is not in connection with the company.
Considerations
As a business owner, one may have a natural tendency to focus on the relationship
with external customers, as they are the ones who purchase your products and services. Still,
seeking ways to improve internal customer relations can lead to a healthier work
environment. One can take steps to improve internal relations by training employees to think
of co-workers in the same manner as external customers and provide the same high level of
service. Set an example by showing appreciation for the employees' efforts and encouraging
their feedback.
The Six Sigma Methodology stresses the importance of the internal customer as well
as the external. The reasons for this are multi-faceted. Internal customers are as important
as the external individuals who are buying the products or availing of business services.
Positivity and productivity work well hand in hand. A few things can and must be done in
order to ensure that the morale of the staff is high; as a happy staff ensures happy business
dealings.
Information and communication is the key to all of this. Between different
departments, there must be ongoing communication to ensure synergy. With synergy,
multiple elements will be played out and the combined effort will no doubt produce a much
greater result. This is how success is achieved within a corporation and it can also positively
impact how the other consumers are serviced. You can even say that the quality of the product
or service is dependent on how well internal customers are treated.
Six Sigma theories like internal & external customers are important to
acknowledge. Although they differ greatly in many ways, they serve a similar purpose; to
increase business success. Pleasing both internal and external customers is imperative to
reach success for any business!
Voice of the Customer (VoC)
The “voice of the customer” is a process used to capture the requirements/feedback
from the customer (internal or external) to provide the customers with the best in class
service/product quality. This process is all about being proactive and constantly innovative
to capture the changing requirements of the customers with time.
It is the term used to describe the stated and unstated needs or requirements of the
customer as well as their experiences with and expectations for your products or services.
The voice of the customer can be captured in a variety of ways: Direct discussion or
interviews, surveys, focus groups, customer specifications, observation, warranty data, field
reports, complaint logs, etc.
This data is used to identify the quality attributes needed for a supplied component
or material to incorporate in the process or product.
42
Why conduct voice of the customer research?
No one becomes an industry leader without listening to the customer. Customerperceived quality is the leading driver of business success. Effective voice of the customer
programs allow you to connect and engage with customers at key points in the customer
journey.
 Customize your products, services, add-ons and features to meet the needs and wants
of your customers
 Maximize your company’s profit
 Identify and prioritize voiced needs and wants
 Prioritize issues and developments
 Solicit and evaluate new concepts, ideas, and solutions
When your customers share their voice in real-time with you and your organization,
they expect you to listen, act and report back to them.
Building an effective voice of the customer program
The voice of the customer is best heard as an ongoing conversation. The key to
creating an effective VoC program is to gather and use information in a timely way that helps
you to improve. Organizations often have multiple touch points with the customer that occur
all across the organization, including sales, support, warranty and accounting interactions.
Here are 4 key areas to consider when building your VoC program:
Capture: It’s important to identify customer listening posts both internally and
externally. Surveys are the easiest and most common way to establish listening
posts across all customer touch-points and departments.
Analyze: After capturing key insights, you can then analyze feedback in real- time.
It’s important to deliver clear and actionable insight to the right employee
stakeholders.
Act: Successful VoC programs put you in the best position to act on real-time
insight. Knowing where the problem areas are allows you and your team to take
corrective action.
Monitor: Continuous monitoring helps you to track your results over time. Having
a real-time pulse on your customers helps you uncover patterns to see where
you are making improvements across the enterprise.
Customer Satisfaction
Customer
satisfaction
(often
abbreviated as CSAT, more correctly CSat) is a
term frequently used in marketing. It is a
measure of how products and services supplied
by
a
company
meet
or
surpass customer expectation. Customer
satisfaction is defined as "the number of
customers or percentage of total customers,
whose reported experience with a firm, its
products, or its services (ratings) exceeds
specified satisfaction goals.
It is seen as a key performance indicator within business and is often part of
a Balanced Scorecard. In a competitive marketplace where businesses compete for
customers, customer satisfaction is seen as a key differentiator and increasingly has become
a key element of business strategy
43
Purpose
Customer satisfaction provides a leading indicator of consumer purchase
intentions and loyalty. Customer satisfaction data are among the most frequently collected
indicators of market perceptions. Their principal use is twofold:
1. Within organizations, the collection, analysis and dissemination of these data send a
message about the importance of tending to customers and ensuring that they have a
positive experience with the company's goods and services.
2. Although sales or market share can indicate how well a firm is performing currently,
satisfaction is perhaps the best indicator of how likely it is that the firm’s customers
will make further purchases in the future. Much research has focused on the
relationship between customer satisfaction and retention. Studies indicate that the
ramifications of satisfaction are most strongly realized at the extremes.
Importance of Customer Satisfaction
Customer satisfaction is important because it provides marketers and business
owners with a metric that they can use to manage and improve their businesses.
In a survey of nearly 200 senior marketing managers, 71 percent responded that they
found a customer satisfaction metric very useful in managing and monitoring their
businesses. The following are the top six (6) reasons why customer satisfaction is so
important:
1. It’s a leading indicator of consumer repurchase intentions and loyalty
2. It’s a point of differentiation
3. It reduces customer churn
4. It increases customer lifetime value
5. It reduces negative word of mouth
6. It’s cheaper to retain customers than acquire new ones
Customer Loyaty
It is a fallacy to assume that a customer is loyal just
because they continue to buy from you. There are many
reasons why a customer repeats purchasing which have little
to do with being really loyal. Consider the following:
 There is a contractual arrangement with your
company
 It takes too much effort or money to change suppliers
 You are currently the low cost provider
 Their relationship is with one of your employees and
not with your company
 Habits are hard to break
 They may actually be in the process of finding an alternative supplier
If any of the above is the case, what do you think is likely to happen should a desirable
competitor come around and seek out your customer’s business? The easier and more
attractive they make it for the customer to switch, the less appealing the above reasons are.
Customer loyalty is far more than repeat business.
Loyalty can be defined as a customer continuing to believe that your organization’s
product/service offer is their best option. It best fulfills their value proposition whatever that
may be. They take that offer whenever faced with that purchasing decision. Moreover, loyalty
means hanging in there even when there may be a problem. This occurs because the
organization has been good to them in the past and addresses issues when they arise. It
44
means that they do not seek out competitors and, when approached by competitors, are not
interested. It also means being willing to spend the time and effort to communicate with the
organization so as to build on past successes and overcome any weaknesses. In a nutshell,
loyalty means a customer wants to do business with you and does.
There are many definitions of customer loyalty. Yet each of them fails to realize that
loyalty runs hand-in-hand with emotions. Customer loyalty is the result of consistently
positive emotional experience, physical attribute-based satisfaction and perceived value of
an experience, which includes the product or services.
Consider who you yourself are loyal to. Surely you’ll answer family and friends. Why?
Because of the emotional bond you have with them. Your family and friends can do things you
may not like, but you stay loyal because of that bond. The same applies with customer loyalty.
To prompt customer loyalty you must build an emotional bond with your customers.
To build customer loyalty, customer experience management blends the physical,
emotional and value elements of an experience into one cohesive experience. Retaining
customers is less expensive than acquiring new ones, and customer experience
management is the most cost-effective way to drive customer satisfaction, customer
retention and customer loyalty. Not only do loyal customers ensure sales, but they are also
more likely to purchase ancillary, high-margin supplemental products and services. Loyal
customers reduce costs associated with consumer education and marketing, especially when
they become Net Promoters for your organization.
Some of the important attitudes and behaviors expected of a loyal customer are the
following:
 Likelihood to recommend your products and services to others
 Likelihood to continue purchasing your products and services, at minimum, at the
same level
 Likelihood of purchasing other products and services you offer
 Believing your products and services are superior to others offered in the
marketplace
 Not actively seeking alternative providers to replace you
 Providing your company with opportunities to correct problems and not using these
as a basis for compromising the relationship
Service Recovery
Service recovery comes into play when something in a service delivery goes wrong.
The service delivery company ideally takes action to ensure that their customer gets their
desired outcome anyway, and later rectifies their own process so that the failure doesn’t
reoccur.
Service recovery according to Fitzsimmons (2011 - p136), is a "Service recovery
converting a previously dissatisfied customer into a loyal customer.” It is the action a
service provider takes in response to service failure. By including also customer satisfaction
into the definition, service recovery is a thought-out, planned, process of returning
aggrieved/dissatisfied customers to a state of satisfaction with a company/service. Service
recovery differs from complaint management in its focus on service failures and the
company’s immediate reaction to it. Complaint management is based on customer
complaints, which, in turn, may be triggered by service failures. However, since most
dissatisfied customers are reluctant to complain, service recovery attempts to solve problems
at the service encounter before customers complain or before they leave the service
encounter dissatisfied. Both complaint management and service recovery are considered as
customer retention strategies. Recently, some researches proved that strategies such as value
co-creation, follow up, etc. can improve the effectiveness of service recovery efforts
45
Service Recovery Program
(Respond with H.E.A.R.T)
Hear
Listen attentively to the person. Don’t interrupt. Listen for facts and emotions. Show that you
are respectful, sincere and not judgmental. Remember the power of your body language and
tone of voice.
Empathize
Verbally identify the person’s emotions. Acknowledge their difficulty. Validate their feelings.
Show compassion with your tone of voice and body language.
Apologize
State regret for the situation. Apologize immediately. Make it sincere, specific and blameless.
Respond
Take ownership. Address what you can. Involve others if needed. Set realistic expectations
with the patient. Follow-up
Thank
Thank the person for talking with you-or giving you the opportunity to help.
Crisis Management
A sudden and unexpected event leading to major unrest amongst the
individuals at the workplace is called as organization crisis. In other words, crisis is
defined as any emergency situation which disturbs the employees as well as leads to
instability in the organization. Crisis affects an individual, group, organization or society on
the whole.
Characteristics of Crisis
 Crisis is a sequence of sudden disturbing events harming the organization.
 Crisis generally arises on a short notice.
 Crisis triggers a feeling of fear and threat amongst the individuals.
Why Crisis?
Crisis can arise in an organization due to any of the following reasons:
 Technological failure and Breakdown of machines lead to crisis. Problems in internet,
corruption in the software, errors in passwords all result in crisis.
 Crisis arises when employees do not agree to each other and fight amongst
themselves. Crisis arises as a result of boycott, strikes for indefinite periods, disputes
and so on.
 Violence, thefts and terrorism at the workplace result in organization crisis.
 Neglecting minor issues in the beginning can lead to major crisis and a situation of
uncertainty at the work place. The management must have complete control on its
employees and should not adopt a casual attitude at work.
 Illegal behaviors such as accepting bribes, frauds, data or information tampering all
lead to organization crisis.
 Crisis arises when organization fails to pay its creditors and declares itself a bankrupt
organization.
46
Crisis Management
The art of dealing with sudden and unexpected events which disturbs the
employees, organization as well as external clients refers to Crisis Management. The
process of handling unexpected and sudden changes in organization culture is called as crisis
management.
Need for Crisis Management
 Crisis Management prepares the individuals to face unexpected developments and
adverse conditions in the organization with courage and determination.
 Employees adjust well to the sudden changes in the organization.
 Employees can understand and analyze the causes of crisis and cope with it in the
best possible way.
 Crisis Management helps the managers to devise strategies to come out of uncertain
conditions and also decide on the future course of action.
 Crisis Management helps the managers to feel the early signs of crisis, warn the
employees against the aftermaths and take necessary precautions for the same.
Essential Features of Crisis Management
 Crisis Management includes activities and processes which help the managers as well
as employees to analyze and understand events which might lead to crisis and
uncertainty in the organization.
 Crisis Management enables the managers and employees to respond effectively to
changes in the organization culture.
 It consists of effective coordination amongst the departments to overcome
emergency situations.
 Employees at the time of crisis must communicate effectively with each other and try
their level best to overcome tough times. Points to keep in mind during crisis
 Don’t panic or spread rumors around. Be patient.
 At the time of crisis the management should be in regular touch with the employees,
external clients, stake holders as well as media.
 Avoid being too rigid. One should adapt well to changes and new situations.
Customer Focused Quality Management Using QFD (Quality Function Deployment)
In the world of business and industry, every organization has customers. Some have
only internal customers, some just external customers, and some have both. When you are
working to determine what you need to accomplish to satisfy or even delight your
customers, then the tool of choice is quality function deployment or QFD.
Background
Quality professionals refer to QFD by many names, including matrix product
planning, decision matrices, and customer-driven engineering. Whatever you call it, QFD is
a focused methodology for carefully listening to the voice of the customer and then
effectively responding to those needs and expectations.
First developed in Japan in the late 1960s as a form of cause-and-effect analysis, QFD
was brought to the United States in the early 1980s. It gained its early popularity as a result
of numerous successes in the automotive industry. In QFD, quality is a measure of customer
satisfaction with a product or a service. QFD is a structured method that uses the seven
management and planning tools to identify and prioritize customers’ expectations
quickly and effectively.
47
Many QFD practitioners claim that using QFD has enabled them to reduce their
product and service development cycle times by as much as 75 percent with equally
impressive improvements in measured customer satisfaction.
Designing Quality Services
High-quality service is essential for competitiveness and can even improve employee
satisfaction. However, a service, like quality, is a multidimensional term. Quality service is
not only an imperative for competitiveness but also a sign of quality maturity. In today’s
economy, services still is a major differentiator that allows firms to beat competitors in the
marketplace
From the viewpoint of business administration, service quality is an achievement
in customer service. It reflects at each service encounter. Customers form service
expectations from past experiences, word of mouth and marketing communications. In
general, customers compare perceived service with expected service, and which if the former
falls short of the latter the customers are disappointed.
Service quality (SQ), in its contemporary conceptualization, is a comparison of
perceived expectations (E) of a service with perceived performance (P), giving rise to the
equation SQ=P-E. This conceptualization of service quality has its origins in the expectancydisconfirmation paradigm.
The Expectancy-Disconfirmation Paradigm
A business with high service quality will meet or exceed customer expectations while
remaining economically competitive. Evidence from empirical studies suggests that
improved service quality increases profitability and long term economic competitiveness.
Improvements to service quality may achieved by improving operational processes;
identifying problems quickly and systematically; establishing valid and reliable
service performance measures and measuring customer satisfaction and other performance
outcomes.
Differences Between Services and Manufacturing
Services are distinguished from manufacturing on several dimensions. First, many
service attributes are intangible. This means that they cannot be inventoried or carried in
stock over long periods of time. However, all services have some tangible aspects as well. The
outputs of services are also heterogeneous. This means that for many companies, no two
services are exactly the same. One useful distinction between services and manufacturing
centers is on the aspect of customer contact. Customers tend to be more involved in the
production of services than they are in production of goods
How Are Service Quality Issues Different from Those of Manufacturing?
Because services’ attributes can be intangible, it is sometimes difficult to obtain hard
data relating to services. In manufacturing, dimensions such as height, weight and width are
available for measurement. In manufacturing, repetitive tasks are easily measured and cycle
times are generally consistent. When customers are intimately involved in processes, there
is much more customization and much more variability than in manufacturing. Product
liability issues in services are very different from manufacturing.
Service Design
Service design is the activity of planning and organizing people, infrastructure,
communication and material components of a service in order to improve its quality and the
interaction between the service provider and its customers. Service design may function as a
48
way to inform changes to an existing service or create a new service entirely. The purpose of
service design methodologies is to establish best practices for designing services according
to both the needs of customers and the competencies and capabilities of service providers. If
a successful method of service design is employed, the service will be user-friendly and
relevant to the customers, while being sustainable and competitive for the service provider.
Service design concepts and ideas are typically portrayed visually, using different
representation techniques according to the culture, skill and level of understanding of the
stakeholders involved in the service processes (Krucken and Meroni, 2006, Morelli and
Tollestrup, 2007).
The concept of service design was described in the following manner: Service design
is an emerging discipline and an existing body of knowledge, which can dramatically improve
the productivity and quality of services.
Service design provides a systematic and creative approach to:
 meeting the needs of service organizations so that they may be competitive
 meeting the rising expectations of customers regarding choice and quality
 making use of the technological revolution, which has vastly expanded the
possibilities for creating, delivering and consuming services
 addressing the pressing environmental, social and economic challenges of
sustainability
 fostering innovative social models and behaviors
 sharing knowledge and learning
Service design...
 aims to create services that are useful, usable, desirable, efficient and effective
 is a human-centered approach that focuses on customer experience and the quality
of services rendered as the key value for success.
 is a holistic approach, considering the integrated way of strategic, systematic,
process-oriented and touch point design decisions.
 is a systematic and iterative process that integrates user-oriented, team-based, and
interdisciplinary approaches and methods in ever-learning cycles.
SERVQUAL
An important tool developed by Parasuraman, Zeithamel and Berry for assessing
services quality is SERVQUAL. The SERVQUAL survey has been used by many firms and is
an off the shelf approach that can be used in many services situations. The SERVQUAL
instrument, a survey, has many advantages. Among these are the following:
1- It is accepted as a standard for assessing different dimensions of services
quality.
2- It has been shown to be valid for a number of service situations.
3- It has been demonstrated to be reliable, meaning that different readers
interpret the questions similarly.
4- Each instrument is parsimonious is that they have only 22 items. This means
that it can be filled out quickly by customers and employees.
5- Finally, it has a standardized analysis procedure to aid both interpretation
and results.
Gap Analysis
A customer's expectation of a particular service is determined by factors such as
recommendations, personal needs and past experiences. The expected service and the
perceived service sometimes may not be equal, thus leaving a gap. The service quality model
49
or the ‘GAP model’ developed in 1985, highlights the main requirements for delivering high
service quality. It identifies five ‘gaps’ that cause unsuccessful delivery.
Customers generally have a tendency to compare the service they 'experience' with
the service they ‘expect’. If the experience does not match the expectation, there arises a gap.
Ten determinants that may influence the appearance of a gap were described by
Parasuraman, Zeithaml and Berry in the SERVQUAL model: reliability, responsiveness,
competence, access, courtesy, communication, credibility, security, understanding the customer
and tangibles. Later, the determinants were reduced to five: tangibles; reliability;
responsiveness; service assurance and empathy in the so-called RATER model.
Designing and improving the services transaction
One of the ways to improve customers’ perceptions of quality is to improve the
process of delivery of the service. Other concepts and tools include services blueprinting,
moments of truth concept, and the Japanese method known as poka-yoke.
1. Services Blueprinting – Service blueprint is a picture or map that accurately portrays the
service system so that different people involved in providing it can understand and deal
with it objectively regardless of their individual point of view. This is particularly useful at
design and redesign stages of service development. It provides a way to break the service
into logical components and to depict the steps or tasks in the processes, the means by
which they are executed and evidence of the service as consumer experience it.
2. Moments of Truth - These are the times at which the customer expects something to
happen. Customers contact with the business can occur in many different ways face to
face, over the Internet, by phone, through a machine such as an ATM, or through the mail.
All these moments of truth result in either happy customer or lost customers.
3. Poka-Yoke - is a Japanese term that means "mistake-proofing" or “inadvertent
error prevention”. The key word in the second translation, often omitted, is "inadvertent".
There is no Poka Yoke solution that protects against an operator’s sabotage, but sabotage
is a rare behavior among people. A poka-yoke is any mechanism in a lean
manufacturing process that helps an equipment operator avoid (yokeru) mistakes (poka).
Its purpose is to eliminate product defects by preventing, correcting, or drawing attention
to human errors as they occur. The concept was formalized, and the term adopted,
by Shigeo Shingo as part of the Toyota Production System.
The customer benefits package
Just as many organizations have employee benefits packages, services firms can
develop customer benefits packages (CBPs). A customer benefits package consists of both
tangibles that define the service and intangibles that make up the services. CBPs are
important not only in that they help define what it is that your service firm will provide to the
customer but also in helping to define what will not be provided to the customer.
Service transaction analysis
This is a service improvement technique that allows managers to analyze their
service processes at a very detailed level. Service Transaction Analysis is a method for
identifying these transactions and evaluating them from the customer’s perspective to
determine if there is a gap between service design and what the customer perceives as the
service.
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Supply Chain Quality in Services
Service customers actually provide inputs to the supply chain. Many times, these
inputs can be information or in some cases, labor as in the case of a self-service gas station.
Therefore, effective communication is necessary between customers and suppliers to
prevent inadequate fulfillment of customer expectations.
References
A. Books
Domingo, Arjhel, Pacual, Marilou and Savellano, Joy. (2017). Total Quality Management Instructional
Manual
Evans,James R. and Lindsay, William M. (2011). The Management and Control of Quality.International
Edition, South-Western, Cengage Learning
Ramasamy, Subbaraj. (2010). Total quality Management. International Edition, Mc-Graw Hill
Dale, B.G., et.al. (2007). Managing quality. 5th edition, Blackwell Publishing Ltd.
Goetsch D.L., Davis S.B.. (2003). Introduction to TQM for Production, Processing and Services. New
Jersey:Prentice Hall
B. Online Resources
www.school-forchanmpions.com/tqm/principles.htm
http://www.mindtools.com/pages/article/newSTR_75.htm
www.slideshare.net/ieeepkhi/total-quality-organizational-change
http:///www.efqm.org
http://www.emeraldinsight.com
http://asq.org/learn-about-quality/total-quality management/overview/overview.html
http://searchcio.techtarget.com/definition/Total-Quality-Management
https://www.isixsigma.com/methodology/total-quality-management-tqm/introduction-and- implementationtotal-quality-management-tqm/
https://www.inc.com/encyclopedia/total-quality-management-tqm.html
Total Quality Management (TQM) http://www.investopedia.com/terms/t/total-quality-managementtqm.asp#ixzz4dXatnz4J
http://www.managementstudyguide.com/total-quality-management.htm
https://www.thebalance.com/total-quality-management-tqm-2221200
http://www.lifetime-reliability.com/cms/free-articles/work-quality-assurance/what-is-quality/
https://www.isixsigma.com/methodology/total-quality-management-tqm/eight-elements-tqm/
http://www.managementstudyguide.com/elements-of-total-quality-management.htm
http://asq.org/learn-about-quality/total-quality-management/overview/primary-elements.html
http://www.yourarticlelibrary.com/total-quality-management/10-elements-of-total-quality-managementexplained/26182/
https://www.linkedin.com/pulse/20141114160833-362270308-eight-elements-of-total-quality-mamagement
http://study.com/academy/lesson/five-principles-of-total-quality-management-tqm.html
http://asq.org/learn-about-quality/total-quality-management/overview/tqm-gets-results.html
http://www.ugb.ro/etc/etc2014no1/06_Paraschivescu__Caprioara.pdf
http://smallbusiness.chron.com/total-quality-management-strategic-planning-13300.html
https://totalqualitymanagement.wordpress.com/2008/10/04/strategic-quality-planning/
https://bia.ca/quality-excellence-begins-with-strategic-quality-planning/
http://ctb.ku.edu/en/table-of-contents/structure/strategic-planning/vmosa/main
http://pubs.sciepub.com/ajie/1/3/2/
http://mngtguru.com/quality-management-philosophers-and-theircontribution/
https://www.bizmanualz.com/improve-quality/who-are-the-top-quality-gurus.html
www.scribd.com/doc/49579485/contributions-of-management-gurus-to-total-quality-management
https://www.cliffsnotes.com/study-guides/principles-of-management/productivity-and-total-qualitymanagement/major-contributors-to-tqm
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Assessing Learning
ACTIVITY 7
Name: _____________________________________________
Course/Year/Section: ___________________________
Date: __________________
Score: _________________
Directions: Answer the following questions in your own words.
1. Do you believe that, “organization’s commitment is to satisfy customers’
needs?” Explain your answer.
2. What are the differences between internal and external customer? What
about their roles/importance to the organization?
3. Explain the three terms in your own words:
a. Voice of the customer
b. Voice of the customer research
c. Voice of the customer program
4. In what way do you think the organization could gain its customers’
satisfaction and loyalty?
5. As a boss and manager of a certain business organization, which of the two do
you prefer to achieve and maintain in your organization: customer
satisfaction or customer loyalty? Justify your answer.
6. How would you compare service recovery from crisis management?
7. In your own understanding, could all crises be managed? Explain why.
8. How through QFD (Quality Function Deployment), organization could have
quality management focused on their customers?
9. Compare and contrast the business excellence models discussed in this
chapter.
10. What is service quality and how can this be attained by a certain service
organization?
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Assessing Learning
ACTIVITY 8
Name: _____________________________________________
Course/Year/Section: ___________________________
Date: __________________
Score: _________________
Directions: Among the highly acclaimed business organizations in our country (choose 3),
what have you observed they are practicing or that they have to enable them to maintain the
loyalty and satisfaction of their customers.
My Answer:
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UNIT 4. LEADERSHIP FOR TOTAL QUALITY MANAGEMENT
Overview
This unit aims to articulate the role of each members of an organization for the
improvement of processes in the workplace in relation to the philosophy of TQM and develop
a self/group/organizational transformation plan/program in light with the organizational
change necessary for successful implementation of total quality practices and sustainable
development.
Learning Objectives
At the end of the unit, I am able to:
1. explain the relationship and importance of total quality to organizational change
and justify the need for sustainable development and how to achieve it;
2. discuss the partnership role in achieving TQM and its implication to the overall
success operation of an organization; and
3. explain the important role of having quality leadership in achieving and
maintaining total quality management in an organization.
Setting up
Name: _____________________________________________
Course/Year/Section: ___________________________
Date: __________________
Direction: Write an essay describing your leadership traits and characteristics as well as the
areas you wanted to develop within yourself as a good leader. You may give some situations
explaining your answer.
My Answer:
54
Lesson Proper
There is no universal definition of leadership and indeed many books have been
devoted to the topic of leadership. In his book Leadership, James Mac Gregor Burns describes
a leader as one who instils purposes and not one who controls by brute force. A leader
strengthens and inspires the followers to accomplish shared goals. Leaders shape, promote,
protect and exemplify the organization’s values. Ultimately, Burns says, “Leaders and
followers raise one another to higher levels of motivation and morality… leadership becomes
moral in that it raises the level of human conduct and ethical aspiration of both the leader
and the led and thus has a transforming effect on both.” Similarly, Daimler Chrysler’s CEO Bob
Eaton defines a leader as “… someone who can take a group of people to a place they don’t
think they can go.” Leadership is we, not me, mission, not my show, vision, not division and
community, not domicile. As can be understood, leadership is difficult to define in anything
other than lofty words.
Leadership can be difficult to define. However, successful quality leaders tend to have
certain characteristics.
Characteristics of Quality Leaders
There are 12 behaviors or characteristics that successful quality leaders demonstrate.
These are as follows:
1. They give priority attention to external and internal customers and their needs.
Leaders place themselves in the customers’ shoes and service their needs from that
perspective. They continually evaluate the customers’ changing requirements.
2. They empower, rather than control, subordinates. Leaders have trust and confidence
in the performance of their subordinates. They provide the resources, training and
work environment to help subordinates do their jobs. However, the decision to accept
responsibility lies with the individual.
3. They emphasize improvement rather than maintenance. Leaders use the phrase “If it
isn’t perfect, improve it” rather than “If it ain’t broke, don’t fix it.” There is always
room for improvement, even if the improvement is small. Major breakthroughs
sometimes happen, but it is the little ones that keep the continuous process
improvement on a positive track.
4. They emphasize prevention. “An ounce of prevention is worth a pound of cure” is
certainly true. It is also true that perfection can be the enemy of creativity. We cannot
always wait until we have created the perfect process or product. There should be a
balance between preventing problems and developing better, but no perfect,
processes.
5. They encourage collaboration rather than competition. When functional areas,
departments or work groups are in competition, they may find subtle ways of
working against each other or withholding information. Instead, there should be
collaboration among and within units.
6. They train and coach, rather than direct and supervise. Leaders know that the
development of human resource is a necessity. As coaches, they help their
subordinates learn to do a better job.
7. They learn from problems. When a problem exists, it is treated as an opportunity
rather than something to be minimized or covered up. “What caused it?” and “How
can we prevent it in the future?” are the questions quality leaders ask.
8. They continually try to improve communications. Leaders continually disseminate
information about the TQM effort. They make it evident that TQM is not just a slogan.
Communication is two way-- ideas will be generated by people when leaders
55
9.
10.
11.
12.
encourage them and act upon them. For example, on the eve of Operation Desert
Storm, General Colin Powell solicited enlisted men and women for advice on winning
the war. Communication is the glue that holds a TQM organization together.
They continually demonstrate their commitment to quality. Leaders walk their talk—
their actions, rather than their words, communicate their level of commitment. They
let the quality statements be their decision-making guide.
They choose suppliers on the basis of quality, not price. Suppliers are encouraged to
participate in project teams and become involved. Leaders know that quality begins
with quality materials and the true measure is the lifecycle cost.
They establish organizational systems to support the quality effort. At the senior
management level, a quality council is provided and at the first-line supervisor level,
work groups and project teams are organized to improve the process.
They encourage and recognize team effort. They encourage, provide recognition to
and reward individuals and teams. Leaders know people like to know that their
contributions are appreciated and important. This action is one of the leader’s most
powerful tools.
Leadership Concepts
In order to become successful, leadership requires an intuitive understanding of the
human nature-- the basic needs, wants and abilities of people. To be effective, a leader
understands the following:
1. People, paradoxically, need security and independence at the same time.
2. People are sensitive to external rewards and punishments and yet are strongly selfmotivated.
3. People like to hear a kind word of praise. Catch people doing something right, so you
can pat them on the back.
4. People can process only a few facts at a time. Thus, a leader needs to keep things
simple.
5. People trust their gut reaction more than statistical data.
6. People reject a leader’s rhetoric if the words are inconsistent with his actions.
The Seven Habits of Highly Effective People
Habit 1-Be Proactive. Being proactive means taking responsibility for your life-- the ability
to choose the responses to a situation. Proactive behavior is the outcome of conscious choice
based on values whereas reactive behavior is based on feelings. Reactive people let
circumstances, conditions or their environment tell them how to respond. Proactive people
let carefully thought-about, selected and internalized values tell them how to respond. It is
not what happens to us but our response that differentiates the two behaviors. No one can
make you miserable unless you choose to let him or her. The language we use is a real
indicator of our behavior. Comparisons are given in the table below.
Comparison between reactive and proactive behavior of an individual.
Reactive
Proactive
There is nothing I can do.
Let us look at our alternatives.
She makes me so mad.
I control my own feelings.
I have to do that.
I will choose an appropriate response.
I cannot.
I choose.
I must.
I prefer.
Things are getting worse.
What initiative can we use?
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Habit 2 - Begin with the End in Mind. The most fundamental application of this habit is to
begin each day with an image, picture or paradigm of the end of your life as your frame of
reference. Each part of your life can be examined in terms of what really matters to you-- a
vision of your life as a whole. All things are created twice-- there is a mental or first creation
and a physical or second creation to all things. To build a house you first create a blueprint
and then construct the actual house. You create a speech on paper before you give it. If you
want to have a successful organization, you begin with a plan that will produce the
appropriate end. Thus, leadership is the first creation and management is the second.
Leadership means doing the right things and management means doing things right.
In order to begin with the end in mind, develop a personal philosophy or creed. Start
by considering the examples mentioned below:
• Never compromise with honesty
• Remember the people involved
• Maintain a positive attitude
• Exercise daily
• Keep a sense of humor
• Do not fear mistakes
• Facilitate the success of subordinates
• Seek divine help
• Read a leadership book monthly
By centering our lives on correct principles, we create a solid foundation for the
development of the life support factors of security, guidance, wisdom and power. Principles
are fundamental truths. They are tightly interwoven threads running with exactness,
consistency, beauty and strength through the fabric of life.
Habit 3 - Put First Things First. Habit one says, “You’re the creator. You are in charge.” Habit
two is the first creation and is based on imagination-- leadership based on values. Habit three
is practicing self-management and requires habits one and two as prerequisites. It is the dayby-day, moment-by-moment management of your time.
Habit 4 - Think Win-Win. Win-win is a frame of mind and heart that constantly seeks mutual
benefit in all human interactions. Both sides come out ahead. In fact, the end result is usually
a better way. If win-win is not possible, then the alternative is no deal. It takes great courage
as well as consideration to create mutual benefits, especially if the other party is thinking
win-lose.
Win-win embraces five interdependent dimensions of life-- character, relationships,
agreements, systems and processes. Character involves the following traits:
• Integrity
• Maturity-- a balance between being considerate of others and the courage to
express feelings
• Abundance mentality (there is plenty out there for everyone)
Relationship means that the two parties trust each other and are deeply committed
to win-win. Agreements require the five elements of desired results, guidelines, resources,
accountability and consequences. Win-win agreements can only survive in a system that
supports it-- you cannot talk win-win and reward win-lose. In order to obtain win-win, a fourstep process is needed. It is as follows:
1. See the problem from the other viewpoint.
2. Identify the key issues and concerns.
3. Determine acceptable results.
4. Seek possible new options to achieve those results.
57
Habit 5 - Seek first to understand, then to be understood. Seek first to understand
involves a paradigm shift since we usually try to be understood first. Empathic listening is the
key to effective communication. It focuses on learning how the other person sees the world,
how they feel etc. The essence of empathic listening is not that you agree with someone. It is
that you fully and deeply understand the person, emotionally as well as intellectually. Next to
physical survival is the greatest need of a human being of psychological survival-- to be
understood, affirmed, validated and appreciated.
The second part of the habit is to be understood. Covey uses three sequentially
arranged Greek words-- ethos, pathos and logos. Ethos is your personal credibility or
character, pathos is the empathy you have with the other person’s communication and logos
is the logic or reasoning part of your presentation.
Habit 6 - Synergy. Synergy means that the whole is greater than the parts. Together, we can
accomplish more than any of us can accomplish alone. This can best be exemplified by the
musical group “The Beatles.” They as a group created more music than each individual
created after the group broke up. The first five habits build toward habit six. It focuses the
concept of win-win and the skills of empathic communication on tough challenges that bring
about new alternatives which did not exist before. Synergy occurs when people abandon their
humdrum presentations and win-lose mentality and open themselves up to creative
cooperation. When there is a genuine understanding, people reach solutions that are better
than they could have achieved acting alone.
Habit 7 - Sharpen the Saw (Renewal). Habit seven is taking time to sharpen the saw so that
it will cut faster. It is personal PC-- preserving and enhancing the greatest asset you have,
which is you. It is renewing the four dimensions of your nature-- physical, spiritual, mental
and social/emotional. All four dimensions of your nature should be used regularly in wise
and balanced ways. Renewing the physical dimension means following good nutrition, rest
and relaxation, and regular exercise. The spiritual dimension is your commitment to your
value system. Renewal comes from prayer, meditation and spiritual reading. The mental
dimension is continuing to develop your intellect through reading, seminars and writing.
These three dimensions require that time be set aside-- they are quadrant II activities. The
social and emotional dimensions of our lives are tied together because our emotional life is
primarily, but not exclusively, developed out of and manifested in our relationship with
others. While this activity does not require time, it does require exercise.
In the his book, Covey states that correct principles are natural laws and that God, the
Creator and the Father of us all, is the source of them and also the source of our conscience.
He submits that to the degree people live by this inspired conscience, they will grow to fulfill
their natures; to the degree that they do not, they will not rise above the animal plane.
Ethics
Ethics is not a precept that is mutually exclusive from quality. Indeed, quality and
ethics have a common care premise, which is to do the right things right. Ethics is the body of
principles or standards of human conduct that govern the behavior of individuals and
organizations. It governs the actions and helps one to decide what the right thing to do is.
Some people learn it while growing up and some do it during an organization’s ethics training
program. Ethics can mean differently to different people, especially when given an
organization’s international workforce and the varying cultural norms. Because individuals
58
have different concepts of what is right, the organization will need to develop the standards
or code of ethics for the organization.
The Root Causes of Unethical Behavior
Much of the unethical behavior in organizations occur in the following cases:
1. Organizations favor their own interests above the well-being of their customers,
employees or the public.
2. Organizations reward behavior that violates ethical standards, such as increasing
sales through false advertising.
3. Organizations encourage separate standards of behavior at work than at home, such
as secrecy and deceit versus honesty.
4. Individuals are willing to abuse their position and power to enhance their interests,
such as taking excessive compensation for themselves off the top before other
stakeholders receive their fair share.
5. Managerial values exist that undermine integrity, such as the pressure managers
exert on employees to cover up mistakes or to do whatever it takes to get the job done,
including cutting corners.
6. Organizations and individuals overemphasize the short-term results at the expense
of themselves and other in the long run. For example, behavior is good based on the
degree of utility, pleasure or good received, regardless of the effect on others.
7. Organizations and managers believe their knowledge is infallible and miscalculate the
true risks, such as when financial managers invest organizational funds in high-risk
options trading.
Tendency toward unethical behavior most likely comes from the interaction of the
root causes of pressure, opportunity and attitude. Unethical behavior is especially prevalent
if employee morale is low. For example, poor working conditions, employee downsizing, and
unacknowledged good work and denied promotions can all contribute to an employee’s poor
attitude.
The Deming Philosophy
Deming’s philosophy is given in the 14 points. Most of these points were given in a
seminar for 21 presidents of leading Japanese industry in 1950. The rest were developed and
the original ones were modified over a period of three decades.
1. Create and Publish the Aims and Purposes of Organization
2. Learn the New Philosophy
3. Understand the Purpose of Inspection
4. Stop Awarding Business based on Price Alone
5. Improve Constantly and Forever the System
6. Institute Training
7. Teach and Institute Leadership
8. Drive Out Fear, Create Trust and a Climate for Innovation
9. Optimize the Efforts of Teams, Groups and Staff Areas
10. Eliminate Exhortations for the Work Force
11A. Eliminate Numerical Quotas for the Work Force
11B. Eliminate Management by Objective
12. Remove Barriers That Rob People of Pride of Workmanship
13. Encourage Education and Self-Improvement for Everyone
14. Take Action to Accomplish the Transformation
59
Role of TQM Leaders
Everyone is responsible for quality, especially senior management and the CEO.
However, only the latter can provide the leadership system to achieve results. For instance,
in the 1980s, General Electric’s CEO, Jack Welch, instituted leadership training courses at all
levels of the organization. The General Electric training courses taught leadership approaches
and models and provided the opportunity for teams to develop solutions for real business
problems. Many of the solutions the teams developed were implemented. Jack Welch
supported the development of a leadership system whereas quality control leaders were
developed at all levels and in all functions of the organization including research, marketing,
manufacturing, sales, finance and human resources. Senior managers need to be provided
with the skills to implement quality control techniques and actively participate in the quality
council. Senior management has numerous responsibilities. It should practice the philosophy
of Management by Wandering Around (MBWA). Management should get out of the office and
visit customers, suppliers, departments within the organization and plants within the
organization. That way, managers learn what is happening with a particular customer,
supplier or project. MBWA can substantially reduce paperwork. Encourage subordinates to
write only important messages that need to be part of the permanent record. For example,
Kinko’s executives perform normal operating duties for two or three days at one location.
This approach is an excellent technique for gaining firsthand information. The idea is to let
employees think for themselves. Senior management’s role is no longer to make the final
decision, but to make sure the team’s decision is aligned with the quality statements of the
organization. Push problem solving and decision making to the lowest appropriate level by
delegating authority and responsibility.
Senior managers should stay informed on the topic of quality improvement by
reading books and articles, attending seminars and talking to other TQM leaders. The leader
sends a strong message to the subordinates when he/she asks if they have read a particular
book or article. The needed resources should be provided to train employees in the TQM tools
and techniques, the technical requirements of the job and safety. Resources in the form of the
appropriate equipment to do the job should also be provided.
Senior managers should find time to celebrate the success of their organization’s
quality efforts by personally participating in award and recognition ceremonies. This activity
is an excellent opportunity to reinforce the importance of the effort and to promote TQM. A
phone call or handshake combined with a sincere “thank you for a job well done” is a powerful
form of recognition and reward. One of the duties of the quality council is to establish or
revise the recognition and reward system. In particular, senior management’s incentive
compensation should include quality improvement performance. Also, provisions should be
made to reward teams as well as creative individuals.
Senior managers should be visible and actively engaged in the quality effort by
serving on teams, coaching teams and teaching seminars. They should lead by demonstrating,
communicating and reinforcing the quality statement. As a rule of thumb, they should spend
about one-third of their time on quality.
A very important role of senior managers is listening to internal and external
customers and suppliers through visits, focus groups and surveys. This information is
translated into core values and process improvement projects.
Another very important role is communication. The objective is to create awareness
of the importance of TQM and provide TQM results in an ongoing manner. The TQM message
should be “sold” to personnel, for if they do not “buy” it. TQM will never happen. In addition
to internal efforts, there should be external activities with customers and suppliers, media
and advertising in trade magazines and interaction with the quality community.
60
By following the preceding suggestions, senior managers should be able to drive fear
out of the organization, break down barriers, remove system roadblocks, anticipate and
minimize resistance to change, i.e. in general change the culture. Only with the involvement
of senior management can TQM be a success.
Visionary Leadership
An organization’s senior leaders need to set directions and high expectations and
create a customer-oriented clear and visible quality values. Values, directions and
expectations need to address all stakeholders. The leaders need to ensure the creation of
strategies, systems and methods for achieving excellence. Strategies and values should help
guide all activities and decisions of the organization. Senior leaders should commit to the
development of the entire workforce. Further, they should encourage participation, learning,
innovation and creativity by all employees. Through their personal roles in planning,
communications, review or organization performance and employee recognition, senior
leaders serve as role models, reinforcing the values and expectations and building leadership
and initiative throughout the organization.
Customer-Driven Excellence
Quality is best judged by the customers. All product and service characteristics that
contribute value to the customer and lead to customer satisfaction, preference and retention
should be the focus of an organization's management system. Customer-driven excellence
has both current and future components-- understanding today's customer desires and
marketplace offerings as well as future innovations. Value and satisfaction may be influenced
by many factors throughout the customer's overall purchase, ownership and service
experiences. These factors include the organization's relationship with customers that help
build trust, confidence and loyalty. This concept of quality includes not only the product and
service characteristics that meet basic customer requirements but also those features and
characteristics that differentiate them from competing offerings. Such differentiation may be
based upon new or modified offerings, combinations of product and service offerings,
customization of offering, rapid response, or special relationships.
Customer-driven quality is thus a strategic concept. It is directed toward customer
retention, market-share gain and growth. It demands constant sensitivity to changing and
emerging customer and market requirements and the factors that drive customer satisfaction
and retention. It also demands awareness of the developments in technology and of
competitors' offerings and the rapid and flexible responses to customer and market
requirements. Success requires more than defect and error reduction, merely meeting
specifications, or reducing complaints.
Nevertheless, defect and error reduction and the elimination of causes of
dissatisfaction contribute to the customers' view of quality and these are important parts of
the customer-driven quality. In addition, the organization's success in recovering from
defects and errors (making things right for the customer) is crucial to building customer
relationships and to retaining customers.
Organizational and Personal Learning
Achieving the highest levels of performance requires a well-executed approach to
organizational and personal learning. Organizational learning refers to both continuous
improvement of existing approaches and adaptation to change, leading to new goals and
approaches. Learning needs to be embedded in the way the organization functions. Learning
should be:
• An integral part of daily work
61
•
•
•
•
Practiced at personal and organizational levels
Directed at solving problems
Focused on sharing knowledge throughout the organization
Driven by opportunities to effect significant change and to do better
Sources for learning include employees’ ideas, Research and Development (R&D),
customers’ input, best practice sharing and benchmarking.
Organizational learning can result in the following:
• Enhancing value to customers through new and improved products and
services
• Developing new opportunities
• Reducing errors, defects, waste and related costs
• Improving responsiveness and cycle time performance
• Increasing productivity and effectiveness in the use of all resources
• Enhancing your organization's performance in fulfilling its public
responsibilities and services as a good citizen
Employees' success depends largely on having opportunities for personal learning
and practicing new skills. Organizations invest in employees' personal learning through
education, training and other opportunities for continuing growth, such as job rotation. On
the job training offers a cost effective way to train and to better link training to your
organizational needs and priorities.
Personal learning can result in the following:
• More satisfied and versatile employees who stay with the organization
• Organizational cross-functional learning
• An improved environment for innovation
Thus, learning is directed not only toward better products and services but also
toward being more responsive, adaptive and efficient. This gives your organization
marketplace sustainability and performance advantages.
Valuing Employees and Partners
An organization's success depends increasingly upon the skills, knowledge, creativity
and motivation of its employees and partners. Valuing employee’s means committing to their
satisfaction, development and well-being. Increasingly, this involves more flexible, high
performance work practices tailored to employees with diverse workplace and home life
needs.
Major challenges in the area of valuing employees include the following:
1. Demonstrating your leaders' commitment to your employees' success
2. Recognition that goes beyond the regular compensation system
3. Development and progression within your organization
4. Sharing your organization's knowledge so that your employees can better serve
your customers and contribute to achieving your strategic objectives
5. Creating an environment that encourages risk-taking. For example, Southwest
Airlines always puts customers second and employees first. Southwest lives up to
its promises to employees, so there is no sense of betrayal to keep people from
enthusiastically contributing. It refuses to lay off employees even when airline
62
workers are laid off industry wide. It has the most productive workforce servicing
twice the number of passengers per employee of any other airline
Organizations need to build internal and external partnerships to better accomplish
overall goals. Internal partnerships might involve creating network relationships among
your work units to improve flexibility, responsiveness and knowledge sharing. External
partnerships might be with customers, suppliers and education organizations. Strategic
partnerships or alliances are increasingly important. Such partnerships might offer entry into
new markets or a basis for new products or services. Also, partnerships might permit the
blending of your organization's core competencies or leadership capabilities with the
complementary strengths and capabilities of partners. For instance, because of Southwest
Airlines spirit of cooperation with co-workers, they requested three advertising companies
to work together to develop Southwest's marketing campaign.
Successful internal and external partnerships develop longer-term objectives,
thereby creating a basis for mutual investments and respect. Partners should address the key
requirements for success, means for regular communication, approaches to evaluating
progress and means for adapting to changing conditions. In some cases, joint education and
training could offer a cost effective method for employee development.
Public Responsibility and Citizenship
An organization’s leaders should stress the need to practice good citizenship. Basic
expectations to adhere to business ethics and protection of public health, safety and the
environment should be maintained. Protection of health, safety and the environment includes
an organization’s operations as well as the life cycles of products and services. Also,
organizations should emphasize resource conservation and waste reduction at the source.
Planning should anticipate adverse impacts from production, distribution, transportation,
use and disposal of products.
Effective planning should prevent problems, provide for a forthright response if
problems occur and make available information and support needed to maintain public
awareness, safety and confidence.
For many organizations, the product design stage is critical. Effective design
strategies should anticipate growing environmental concerns and responsibilities.
Organizations should not only meet all local, state and central laws and regulatory
requirements but they should treat these and related requirements as opportunities for
improvement “beyond mere compliance.”
Practicing good citizenship refers to leadership and support of publicly important
purposes within the limits of an organization’s resources. Leadership as a rate citizen also
entails influencing other organizations. For example, an organization might lead or
participate in efforts to help define the obligations of its industry to its communities.
Focus on Results and Creating Value
An organization's performance measurements need to focus on key results. Results
should be used to create and balance value for key stakeholders-- customers, employees,
stockholders, suppliers and partners, public and community. By creating value for key
stakeholders, an organization builds loyalty and contributes to growing the economy. To
meet the sometimes conflicting and changing aims that balancing value implies,
organizational strategy should explicitly include key stakeholder requirements. This will help
ensure that actions and plans meet differing stakeholder needs and avoid adverse impacts on
any stakeholder. The use of a balanced composite of leading and lagging performance
63
measures offers an effective means to communicate short- and long-term priorities, monitor
actual performance and provide a clear basis for improving results.
References
A. Books
Domingo, Arjhel, Pacual, Marilou and Savellano, Joy. (2017). Total Quality Management Instructional
Manual
Evans,James R. and Lindsay, William M. (2011). The Management and Control of Quality.International
Edition, South-Western, Cengage Learning
Ramasamy, Subbaraj. (2010). Total quality Management. International Edition, Mc-Graw Hill
Dale, B.G., et.al. (2007). Managing quality. 5 th edition, Blackwell Publishing Ltd.
Goetsch D.L., Davis S.B.. (2003). Introduction to TQM for Production, Processing and Services. New
Jersey:Prentice Hall
D. Online Resources
www.school-forchanmpions.com/tqm/principles.htm
http://www.mindtools.com/pages/article/newSTR_75.htm
www.slideshare.net/ieeepkhi/total-quality-organizational-change
http:///www.efqm.org
http://www.emeraldinsight.com
http://asq.org/learn-about-quality/total-quality management/overview/overview.html
http://searchcio.techtarget.com/definition/Total-Quality-Management
https://www.isixsigma.com/methodology/total-quality-management-tqm/introduction-and- implementationtotal-quality-management-tqm/
https://www.inc.com/encyclopedia/total-quality-management-tqm.html
Total Quality Management (TQM) http://www.investopedia.com/terms/t/total-quality-managementtqm.asp#ixzz4dXatnz4J
http://www.managementstudyguide.com/total-quality-management.htm
https://www.thebalance.com/total-quality-management-tqm-2221200
http://www.lifetime-reliability.com/cms/free-articles/work-quality-assurance/what-is-quality/
https://www.isixsigma.com/methodology/total-quality-management-tqm/eight-elements-tqm/
http://www.managementstudyguide.com/elements-of-total-quality-management.htm
http://asq.org/learn-about-quality/total-quality-management/overview/primary-elements.html
http://www.yourarticlelibrary.com/total-quality-management/10-elements-of-total-quality-managementexplained/26182/
https://www.linkedin.com/pulse/20141114160833-362270308-eight-elements-of-total-quality-mamagement
http://study.com/academy/lesson/five-principles-of-total-quality-management-tqm.html
http://asq.org/learn-about-quality/total-quality-management/overview/tqm-gets-results.html
http://www.ugb.ro/etc/etc2014no1/06_Paraschivescu__Caprioara.pdf
http://smallbusiness.chron.com/total-quality-management-strategic-planning-13300.html
https://totalqualitymanagement.wordpress.com/2008/10/04/strategic-quality-planning/
https://bia.ca/quality-excellence-begins-with-strategic-quality-planning/
http://ctb.ku.edu/en/table-of-contents/structure/strategic-planning/vmosa/main
http://pubs.sciepub.com/ajie/1/3/2/
http://mngtguru.com/quality-management-philosophers-and-theircontribution/
https://www.bizmanualz.com/improve-quality/who-are-the-top-quality-gurus.html
www.scribd.com/doc/49579485/contributions-of-management-gurus-to-total-quality-management
https://www.cliffsnotes.com/study-guides/principles-of-management/productivity-and-total-qualitymanagement/major-contributors-to-tqm
64
Assessing Learning
ACTIVITY 9
Name: _____________________________________________
Course/Year/Section: ___________________________
Date: __________________
Score: _________________
Directions: Make a written report on your 3 most admire business leaders. Give first a
background information of the person, a picture and the business organization he is
connected with. Enumerate and explain well his contribution to the success of the
organization and your justification that makes that person ideal/admirable to you.
My Answer:
65
Assessing Learning
ACTIVITY 10
Name: _____________________________________________
Course/Year/Section: ___________________________
Date: __________________
Score: _________________
Directions: Among the seven habits of highly effective people, assess yourself and determine
whether you were able to practice those, and if not, explain why.
My Answer:
66
Assessing Learning
ACTIVITY 11
Name: _____________________________________________
Course/Year/Section: ___________________________
Date: __________________
Score: _________________
Directions: Among the seven habits of highly effective people, assess yourself and determine
whether you were able to practice those, and if not, explain why.
My Answer:
67
UNIT 5. TQM PROCESS AND IMPLEMENTATION
Overview
This unit explains the eleven (11) TQM implementation practices and the necessary
processes to successfully implement it. Basically this unit aims to develop your research skills
to keep abreast of changes in the field of TQM and develop analytical skills for investigating
and analyzing quality management issues in the industry and suggest implementable
solutions to those.
Learning Objectives
At the end of the unit, I am able to:
1. choose and defend best practices in quality management base on the TQM elements
and principles; and
2. recommends implementable TQM practices and use TQM methodology in
enhancing TQM procedures.
Setting up
Name: _____________________________________________
Course/Year/Section: ___________________________
Date: __________________
Direction: Make a research in the internet about the problems encountered by some business
organization (existing and operational) in the implementation of TQM. In your own
understanding, what can you suggest as a solution from the problems that you have
identified? Your report must also include a brief background of the business organization.
My Answer:
68
Lesson Proper
A Framework of TQM
The framework of TQM was formulated on the basis of the theoretical model of TQM
implementation constructs and overall business performance. The combination of the
elements of TQM and overall business performance was the framework of TQM, which is
displayed in the figure below. Thus, the framework of TQM consists of the 11 elements of
TQM and the four elements of overall business performance. This framework was based on
the hypothesis that TQM implementation has effects on employee satisfaction, product
quality, customer satisfaction, and strategic business performance.
In this framework of TQM, the 11 TQM elements as a whole are regarded as enablers
that can lead to improvements of overall business performance. In other words, overall
business performance is the result of TQM implementation.
Employee
satisfaction
Vision and
plan
statement
Evaluation
Employee
participation
Recognition
and
reward
Education
and
training
Product
quality
Leadership
Supplier
quality
management
Process
control and
improvement
Product
design
Quality
system
improvement
TQM Implementation
Strategic
business
performance
Customer
focus
Customer
satisfaction
Overall Business Performance
A Framework of TQM
TQM Implementation Practices
A set of TQM implementation practices and their explanations are presented in this
section. In fact, implementing TQM is to implement the 11 TQM elements. There is a set of
TQM implementation practices supporting the implementation of each element.
1. Leadership
 Top Management Commitment
 Top Management Participation
 Top Management Learning
 Top Management Empowerment
 Top Management Encouragement
69



Top Management’s Role Model
Pursuit of Long-Term Business Success
Management by Fact
2. Supplier Quality Management
 Partnership with Suppliers
 Supplier Selection Criteria
 Participation in Suppliers
 Supplier Performance Evaluation
 Supplier Quality Audit
 Supplier Communication
3. Vision and Plan Statement
 Vision Statement
 Quality Policy
 Overall Business Performance Plan
 Product Quality Goal
 Quality Improvement Plan
 Formulation of Vision and Plan
4. Evaluation
 Evaluation of Strategy
 Evaluation of Overall Business Performance
 Evaluation of Departments’ Performance
 Evaluation of Employee Performance
 Quality Audit
 Benchmarking
 Quality Costs
 Information System
5. Process Control and Improvement
 Shop Floor Control
 Process Capability
 Equipment Maintenance and Innovation
 Inventory Management
 Inspection
 Use of Quality Tools
6. Product Design
 Concurrent Engineering
 Reliability Engineering
 Designing for Manufacturability
 Design of Experiments
 Quality Function Deployment
 Value Engineering
 Computer-Aided Design (CAD)
70
7. Quality System Improvement
 Quality Manual
 Quality System Procedures
 Work Instructions
 ISO 9000 Certification
8. Employee Participation
 Cross-Functional Team
 Quality Control (QC) Circle
 Within-Functional Team
 Information Communication
 Employee Suggestions
 Improving Employee Commitment
 Job Rotation
 Workers’ Congress
 Trade Union
9. Recognition and Reward
 Recognition and Reward Program
 Working Environment Improvement
 Salary Promotion
 Bonus Scheme
 Position Promotion
 Moral Award
 Penalty
10. Education and Training
 Education and Training Plan
 Team learning
 Quality Awareness Education
 Training for Quality Management Knowledge
 Job Training
 Formal Education Promotion
11. Customer Focus
 Customer Complaint Information
 Market Investigation
 Customer Satisfaction Survey
 Quality Warranty
 Customer Services
 Customer Information System
71
TQM Implementation Processes
This section provides processes of using the TQM implementation model in practice.
The figure below displays the primary processes of implementing TQM, consisting of seven
steps.
a. First, in order to have an effective TQM implementation, top management should be
committed to implementing this model.
b. Second, based on top management commitment, a team should be established to steer
the TQM implementation in the firm.
c. Third, the current TQM implementation practices and overall business performance
must be evaluated according to the TQM implementation practices presented.
d. Fourth, a PDCA cycle should begin. The cycle starts with the Plan stage, which
involves an evaluation of the firm’s current TQM implementation and overall business
performance. This stage includes collecting and analyzing data so as to formulate a
plan of action intended to improve TQM implementation and overall business
performance.
e. Fifth, once a plan for improvement has been agreed on the next step is the Do stage,
during which the plan is implemented in practice. This stage may itself involve a miniPDCA cycle as the problems of implementation are resolved.
f.
Sixth comes to the Check stage. In this stage, the effects of implementing the
improvement plan are measured and used to compare with the plan. The goal of the
firm’s overall business performance is used to confirm the effects of implementing
the improvement plan.
g. Seventh, things move to the Act stage, during which the change is consolidated or
standardized if it has been successful. Alternatively, if the change has not been
successful, the lessons learned from the “trial” are formalized before the cycle starts
again. Such information is used by top management and the TQM implementation
team in formulating further improvement plans.
Finally, it is essential to restart the PDCA cycle, which is the most important part of
implementation. Implementing TQM is like the PDCA cycle – never-ending!
72
TQM Implementation Processes
Top management
commitment
(Step 1)
Formulate a TQM
implementation team
(Step 2)
.
Evaluate TQM practices and
overall business performance
(Step 3)
Goals of overall
business performance
PLAN
Formulate
improvement
plan (Step 4)
DO
Implement
improvement
plan (Step 5)
Investigate and
analyze results
(Step 7)
ACT
Observe and
check results
(Step 6)
CHECK
References
A. Books
Domingo, Arjhel, Pacual, Marilou and Savellano, Joy. (2017). Total Quality Management Instructional
Manual
Evans,James R. and Lindsay, William M. (2011). The Management and Control of Quality.International
Edition, South-Western, Cengage Learning
Ramasamy, Subbaraj. (2010). Total quality Management. International Edition, Mc-Graw Hill
Dale, B.G., et.al. (2007). Managing quality. 5 th edition, Blackwell Publishing Ltd.
Goetsch D.L., Davis S.B.. (2003). Introduction to TQM for Production, Processing and Services. New
Jersey:Prentice Hall
73
E. Online Resources
www.school-forchanmpions.com/tqm/principles.htm
http://www.mindtools.com/pages/article/newSTR_75.htm
www.slideshare.net/ieeepkhi/total-quality-organizational-change
http:///www.efqm.org
http://www.emeraldinsight.com
http://asq.org/learn-about-quality/total-quality management/overview/overview.html
http://searchcio.techtarget.com/definition/Total-Quality-Management
https://www.isixsigma.com/methodology/total-quality-management-tqm/introduction-andimplementation-total-quality-management-tqm/
https://www.inc.com/encyclopedia/total-quality-management-tqm.html
Total Quality Management (TQM) http://www.investopedia.com/terms/t/total-qualitymanagement-tqm.asp#ixzz4dXatnz4J
http://www.managementstudyguide.com/total-quality-management.htm
https://www.thebalance.com/total-quality-management-tqm-2221200
http://www.lifetime-reliability.com/cms/free-articles/work-quality-assurance/what-is-quality/
https://www.isixsigma.com/methodology/total-quality-management-tqm/eight-elements-tqm/
http://www.managementstudyguide.com/elements-of-total-quality-management.htm
http://asq.org/learn-about-quality/total-quality-management/overview/primary-elements.html
http://www.yourarticlelibrary.com/total-quality-management/10-elements-of-total-qualitymanagement-explained/26182/
https://www.linkedin.com/pulse/20141114160833-362270308-eight-elements-of-total-qualitymamagement
http://study.com/academy/lesson/five-principles-of-total-quality-management-tqm.html
http://asq.org/learn-about-quality/total-quality-management/overview/tqm-gets-results.html
http://www.ugb.ro/etc/etc2014no1/06_Paraschivescu__Caprioara.pdf
http://smallbusiness.chron.com/total-quality-management-strategic-planning-13300.html
https://totalqualitymanagement.wordpress.com/2008/10/04/strategic-quality-planning/
https://bia.ca/quality-excellence-begins-with-strategic-quality-planning/
http://ctb.ku.edu/en/table-of-contents/structure/strategic-planning/vmosa/main
http://pubs.sciepub.com/ajie/1/3/2/
http://mngtguru.com/quality-management-philosophers-and-theircontribution/
https://www.bizmanualz.com/improve-quality/who-are-the-top-quality-gurus.html
www.scribd.com/doc/49579485/contributions-of-management-gurus-to-total-quality-management
https://www.cliffsnotes.com/study-guides/principles-of-management/productivity-and-totalquality-management/major-contributors-to-tqm
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Assessing Learning
ACTIVITY 12
Name: _____________________________________________
Course/Year/Section: ___________________________
Date: __________________
Score: _________________
Directions: Illustrate and discuss in your own words or understanding the TQM
Implementation Process.
My Answer:
75
Assessing Learning
ACTIVITY 13
Name: _____________________________________________
Course/Year/Section: ___________________________
Date: __________________
Score: _________________
Directions: Do a research in the internet and come up with a compilation of additional reading
materials explaining the specific TQM implementation practices supporting the
implementation of each 11 element.
My Answer:
76
UNIT 6. STRATEGIC QUALITY MANAGEMENT
Overview
This unit presents the concept of strategic quality management and its role in the
success of an organization. Basically, this unit aims to give ideas on the development of timely
strategies responsive to the latest TQM trends practice by different industry, models to be
used and quality management methodology for the implementation of total quality
management in any sphere of business and public sector.
Learning Objectives
At the end of the unit, I am able to:
1. apply appropriate TQM practices base on different situation or circumstances that
is happening in an organization; and
2. develop a business strategy driven by total quality management.
Setting up
Name: _____________________________________________
Course/Year/Section: ___________________________
Direction: Explain the following words or terms:
a. Strategy
b. Strategic management
c. Strategic planning
d. Total quality management
e. Strategic quality management
My Answer:
77
Date: __________________
Lesson Proper
Strategy and Strategic Management Defined
Strategy is defined as "the determination of the basic long-term goals of an enterprise
and the adoption of courses of action and the allocation of resources necessary for carrying
out these goals. Strategies are established to set direction, focus effort, define or clarify the
organization, and provide consistency or guidance in response to the environment. Michael
Porter defined strategy in 1980 as the "...broad formula for how a business is going to
compete, what its goals should be, and what policies will be needed to carry out those goals"
and the "...combination of the ends (goals) for which the firm is striving and
the means (policies) by which it is seeking to get there." He continued that: "The essence of
formulating competitive strategy is relating a company to its environment.
Strategic management involves the formulation and implementation of the major
goals and initiatives taken by a company's top management on behalf of owners, based on
consideration of resources and an assessment of the internal and external environments in
which the organization competes.
The importance of strategic management is that it enables an organization
achieve total quality for absolute customer satisfaction. The success of any organization
lies on the customers who are the core stakeholders. With customer satisfaction, there will
be consistent improvement in their loyalty. The eventual customer loyalty guarantees an
organization the future business prospects which indicate the sustainability of the business
in the long term.
Strategic management involves the related concepts of
strategic
planning and strategic thinking. Strategic planning is analytical in nature and refers to
formalized procedures to produce the data and analyses used as inputs for strategic thinking,
which synthesizes the data resulting in the strategy. Strategic planning may also refer to
control mechanisms used to implement the strategy once it is determined. In other words,
strategic planning happens around the strategic thinking or strategy making activity.
What is the relation of Strategic Planning and Total Quality Management?
When an organizations chooses to make quality a major competitive edge
(differentiation), it becomes the central issue in strategic planning. This is especially reflected
in vision, mission and policy guidelines of an organization.
An essential idea behind strategic quality planning is that the product is customer
value rather than a physical product or service. This feat cannot be achieved unless an
organization creates a culture of quality and no strategy and plan can be worthwhile unless
it is carefully implemented.
VMOSA (Vision, Mission, Objectives, Strategies, and Action Plans)
Strategic planning is also the process by which an organization defines its own
"VMOSA;" that is, its Vision, Mission, Objectives, Strategies, and Action Plans. VMOSA is a
practical planning process used to help organizations and different community groups define
a vision and develop practical ways to enact change. VMOSA helps an organization set and
achieve short term goals while keeping sight of the long term vision. The implementation of
this planning process into the firm's efforts supports developing a clear mission, building
consensus, and grounding the group's dreams. This comprehensive planning tool can help an
organization by providing a blueprint for moving from dreams to actions to positive
outcomes for the community and stakeholders as well.
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Why should organization use VMOSA?
Why should an organization use this planning process? There are many good reasons,
including all of the following:
 The VMOSA process grounds your dreams. It makes good ideas possible by laying out
what needs to happen in order to achieve your vision.
 By creating this process in a group effort (taking care to involve both people affected
by the problem and those with the abilities to change it), it allows your organization
to build consensus around your focus and the necessary steps your organization
should take.
 The process gives you an opportunity to develop your vision and mission together
with those in the community who will be affected by what you do. That means that
your work is much more likely to address the community’s real needs and desires,
rather than what you think they might be. It also means community ownership of the
vision and mission, putting everyone on the same page and greatly increasing the
chances that any effort will be successful.
 VMOSA allows your organization to focus on your short-term goals while keeping
sight of your long-term vision and mission.
When to use VMOSA?
So, when should you use this strategic planning process? Of course, it always makes
sense for your organization to have the direction and order it gives you, but there are some
times it makes particularly good sense to use this process. These times include:
 When you are starting a new organization.
 When your organization is starting a new initiative or large project, or is going to
begin work in a new direction.
 When your group is moving into a new phase of an ongoing effort.
 When you are trying to invigorate an older initiative that has lost its focus or
momentum.
 When you’re applying for new funding or to a new funder. It’s important under these
circumstances to clarify your vision and mission so that any funding you seek
supports what your organization actually stands for. Otherwise, you can wind up
with strings attached to the money that require you to take a direction not in keeping
with your organization’s real purpose or philosophy.
Let's look briefly at each of the individual ingredients important in this process. Then,
in the next few sections we'll look at each of these in a more in-depth manner, and explain
how to go about developing each step of the planning process.
Vision (The Dream)
Your vision communicates what your organization believes are the ideal conditions
for your community – how things would look if the issue important to you were perfectly
addressed. This utopian dream is generally described by one or more phrases or vision
statements, which are brief proclamations that convey the community's dreams for the
future. By developing a vision statement, your organization makes the beliefs and governing
principles of your organization clear to the greater community (as well as to your own staff,
participants, and volunteers).
There are certain characteristics that most vision statements have in common. In
general, vision statements should be:
 Understood and shared by members of the community
 Broad enough to encompass a variety of local perspectives
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

Inspiring and uplifting to everyone involved in your effort
Easy to communicate - for example, they should be short enough to fit on a T-shirt
Here are a few vision statements which meet the above criteria:
 Healthy children
 Safe streets, safe neighborhoods
 Every house a home
 Education for all
 Peace on earth
Mission (The What and Why)
Developing mission statements are the next step in the action planning process. An
organization's mission statement describes what the group is going to do, and why it's going
to do that. Mission statements are similar to vision statements, but they're more concrete,
and they are definitely more "action-oriented" than vision statements. The mission might
refer to a problem, such as an inadequate housing, or a goal, such as providing access to health
care for everyone. And, while they don't go into a lot of detail, they start to hint - very broadly
- at how your organization might go about fixing the problems it has noted.
Some general guiding principles about mission statements are that they are:
 Concise. Although not as short a phrase as a vision statement, a mission statement
should still get its point across in one sentence.
 Outcome-oriented. Mission statements explain the overarching outcomes your
organization is working to achieve.
 Inclusive. While mission statements do make statements about your group's
overarching goals, it's very important that they do so very broadly. Good mission
statements are not limiting in the strategies or sectors of the community that may
become involved in the project.



The following mission statements are examples that meet the above criteria.
"To promote child health and development through a comprehensive family and
community initiative."
"To create a thriving African American community through development of jobs,
education, housing, and cultural pride.
"To develop a safe and healthy neighborhood through collaborative planning,
community action, and policy advocacy."
While vision and mission statements themselves should be short, it often makes sense
for an organization to include its deeply held beliefs or philosophy, which may in fact define
both its work and the organization itself. One way to do this without sacrificing the directness
of the vision and mission statements is to include guiding principles as an addition to the
statements. These can lay out the beliefs of the organization while keeping its vision and
mission statements short and to the point.
Objectives (How Much Of What Will Be Accomplished By When)
Once an organization has developed its mission statement, its next step is to develop
the specific objectives that are focused on achieving that mission. Objectives refer to specific
measurable results for the initiative's broad goals. An organization's objectives generally lay
out how much of what will be accomplished by when. For example, one of several objectives
for a community initiative to promote care and caring for older adults might be: "By 2015 (by
80
when), to increase by 20% (how much) those elders reporting that they are in daily contact
with someone who cares about them (of what)."
There are three basic types of objectives. They are:
 Behavioral objectives. These objectives look at changing the behaviors of people (what
they are doing and saying) and the products (or results) of their behaviors. For
example, a neighborhood improvement group might develop an objective around
having an increased amount of home repair taking place (the behavior) or of
improved housing (the result).
 Community-level outcome objectives. These are related to behavioral outcome
objectives, but are more focused more on a community level instead of an individual
level. For example, the same group might suggest increasing the percentage of decent
affordable housing in the community as a community-level outcome objective.
 Process objectives. These are the objectives that refer to the implementation of
activities necessary to achieve other objectives. For example, the group might adopt
a comprehensive plan for improving neighborhood housing.
It's important to understand that these different types of objectives aren't mutually
exclusive. Most groups will develop objectives in all three categories. Examples of objectives
include:
 By December 2010, to increase by 30% parent engagement (i.e., talking, playing,
reading) with children under 2 years of age. (Behavioral objective)
 By 2012, to have made a 40% increase in youth graduating from high school.
(Community -level outcome objective)
 By the year 2006, increase by 30% the percentage of families that own their home.
(Community-level outcome objective)
 By December of this year, implement the volunteer training program for all
volunteers. (Process objective)
Strategies (The How)
The next step in the process of VMOSA is developing your strategies. Strategies
explain how the initiative will reach its objectives. Generally, organizations will have a wide
variety of strategies that include people from all of the different parts, or sectors, of the
community. These strategies range from the very broad, which encompass people and
resources from many different parts of the community, to the very specific, which aim at
carefully defined areas.
Examples of broad strategies include:
 A child health program might use social marketing to promote adult involvement with
children
 An adolescent pregnancy initiative might decide to increase access to contraceptives
in the community
 An urban revitalization project might enhance the artistic life of the community by
encouraging artists to perform in the area
Five types of specific strategies can help guide most interventions. They are:
 Providing information and enhancing skills (e.g., offer skills training in conflict
management)
 Enhancing services and support (e.g., start a mentoring programs for high-risk youth)
81



Modify access, barriers, and opportunities (such as offering scholarships to students
who would be otherwise unable to attend college)
Change the consequences of efforts (e.g., provide incentives for community members
to volunteer)
Modify policies (e.g., change business policies to allow parents and guardians and
volunteers to spend more time with young children)
Action Plan (What Change Will Happen; Who Will Do What By When To Make It
Happen)
Finally, an organization's action plan describes in great detail exactly how strategies
will be implemented to accomplish the objectives developed earlier in this process. The plan
refers to: a) specific (community and systems) changes to be sought, and b) the specific action
steps necessary to bring about changes in all of the relevant sectors, or parts, of the
community.
The key aspects of the intervention or (community and systems) changes to be sought
are outlined in the action plan. For example, in a program whose mission is to increase youth
interest in politics, one of the strategies might be to teach students about the electoral system.
Some of the action steps, then, might be to develop age-appropriate materials for students, to
hold mock elections for candidates in local schools, and to include some teaching time in the
curriculum.
Action steps are developed for each component of the intervention or (community
and systems) changes to be sought. These include:
 Action step(s): What will happen
 Person(s) responsible: Who will do what
 Date to be completed: Timing of each action step
 Resources required: Resources and support (both what is needed and what's
available )
 Barriers or resistance, and a plan to overcome them!
 Collaborators: Who else should know about this action
Here are two examples of action steps, graphed out so you can easily follow the flow:
Action Step
 Draft a
social
marketing plan
 Ask local
corporations to
introduce flextime for
parents and
mentors
Person(s)
Date to be
Responsibl
Completed
e
Terry
McNeil
(from
marketing
firm)
Maria
Suarez
(from
business
action
group)
April 2006
Resources
Required
Potential
Barriers or
Resistance
Collaborators
$15,000
(remaining
donated)
None
anticipated
Members of
the business
action group
Corporation:
5 hours; 2
may see this as
hour proposal
expensive;
September prep; 3 hours must convince
2008
for meeting
them of
and
benefit of the
transportation plan for the
corporation
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Members of
the business
action group
and the school
action group
Of course, once you have finished designing the strategic plan or "VMOSA" for your
organization, you are just beginning in this work. Your action plan will need to be tried and
tested and revised, then tried and tested and revised again. You'll need to obtain feedback
from community members, and add and subtract elements of your plan based on that
feedback.
The term “Quality Statements”
Quality statements are part of strategic planning process and once developed, are
occasionally reviewed and updated. There are three types of quality statements are:
1. Vision statement
2. Mission statement
3. Quality policy statement
The utilization of these statements varies from organization to organization. Small
organization may use only the quality policy statement.
1. Vision Statement: The vision statement is a short declaration what an organization
aspires to be tomorrow. A vision statement, on the other hand, describes how the future will
look if the organization achieves its mission.
Successful visions are timeless, inspirational, and become deeply shared within the
organization, such as:
 IBM’s Service
 Apple’s Computing for the masses
 Disney theme park’s the happiest place on the earth, and
 Polaroid’s instant photography
2. Mission Statement: A mission statement concerns what an organization is all about. The
statement answers the questions such as: who we are, who are our customers, what do we
do and how do we do it. This statement is usually one paragraph or less in length, easy to
understand, and describes the function of the organization. It provides clear statement of
purpose for employees, customers, and suppliers.
An example of mission statement is:
Ford Motor Company is a worldwide leader in automatic and automotive related
products and services as well as the newer industries such as aerospace, communications, and
financial services. Our mission is to improve continually our products and services to meet our
customers’ needs, allowing us to prosper as a business and to provide a reasonable return on to
our shareholders, the owners of our business.
3. Quality Policy Statement: The quality policy is a guide for everyone in the organization
as to how they should provide products and services to the customers. It should be written
by the CEO with feedback from the workforce and be approved by the quality council. A
quality policy is a requirement of ISO 9000.
A simple quality policy is:
Xerox is a quality company. Quality is the basic business principle for Xerox. Quality
means providing our external and internal customers with innovative products and services that
fully satisfy their requirements. Quality is the job of every employee.
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How an organization can do strategic quality planning?
The process starts with the principles that quality and customer satisfaction are the
center of an organization’s future. It brings together all the key stakeholders. The strategic
planning can be performed by any organization. It can be highly effective, allowing the
organizations to do the right thing at the right time, every time.
There are seven steps to strategic Quality Planning:
1. Discover customer needs
2. Customer positioning
3. Predict the future
4. Gap analysis
5. Closing the gap
6. Alignment
7. Implementation
1. Customer Needs: The first step is to discover the future needs of the customers. Who will
they be? Will your customer base change? What will they want? How will they want? How
will the organization meet and exceed expectations?
2. Customer Positioning: Next, the planners determine where organization wants to be in
relation to the customers. Do they want to retain, reduce, or expand the customer base?
Product or services with poor quality performance should be targeted for breakthrough or
eliminated. There is a need for the organization to concentrate its efforts on areas of
excellence.
3. Predict the future: Next planners must look into their crystal balls to predict the future
conditions that will affect their product or service. Demographics, economics forecasts, and
technical assessments or projections are tools that help predict the future.
4. Gap Analysis: This step requires the planner to identify the gaps between the current state
and the future state of the organization. An analysis of the core values and concepts is an
excellent technique for pinpointing gaps.
5. Closing the Gap: The plan can now be developed to close the gap by establishing goals and
responsibilities. All stakeholders should be included in the development of the plan.
6. Alignment: As the plan is developed, it must be aligned with the mission, vision, and core
values and concepts of the organization. Without this alignment, the plan will have little
chance of success.
7. Implementation: This last step is frequently the most difficult. Resources must be
allocated to collecting data, designing changes, and overcoming resistance to change. Also
part of this step is the monitoring activity to ensure that progress is being made. The planning
group should meet at least once a year to assess progress and take any corrective action.
Strategic Quality Management
The concept of strategic quality management has been developed over time in the
business environment and its inception which has led to the growth realized by the several
global organizations. The concept of strategic quality management goes beyond the basic
quality requirements of a particular product or service to the quality of everything that the
organization has an involvement.
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Strategic quality management involves the aggregation of quality as well as
continuous improvement with the organizational transformation so as to make the objectives
an integral part of the way business is conducted. Most organizations treat Total Quality
Management as being added to the culture of an organization. However, SQM fully integrates
the TQM into the business operation and strategy. Strategic Quality Management is attained
when strategic planning and quality planning have merged into one seamless process, owing
to a free flow of information between strategic planners and quality planners.
The current issues surrounding the strategic quality management are all aimed at the
achievement of total quality by the organization through the planning, implementation and
controls of the strategies for quality management. The definition of SQM is customer and
environment guided. This means that it focuses on the customer value as well as other
influences on the surrounding factors. In addition, the SQM objective is to prevent errors in
services offered by the firm and maintenance of socially responsible decisions that are logical
and concerned about the entire environment. There is reduced cost associated with the
strategic quality management of the firm coupled with increased employees productivity and
improved corporate image. There is involvement of every member of the organization in the
SQM implementation with the management taking the lead role in decision making and
implementation. Moreover, there is emphasis on the organizational culture of continuous
improvement.
The decisions making in an SQM set up allow horizontal and vertical approach which
facilitate active participation of all stakeholders. There is also an encouragement of teamwork
in the organization that has implemented SQM. There should be basics in developing the
strategic as well as operational strategies to continually optimize the quality of products or
services. There are some basic concepts that have been identified such as customer focus,
leadership, continuous improvement, strategic quality planning, design quality, and
fact based management (Tummala & Tang, 1996). Strategic quality management aims to
present some decisions which is implementing through a complete plan will achieve the
mission and vision of the organization (Pearce & Robinson, 2007).
The SQM focuses on empowerment which is defined as: "the process of providing
employees with the necessary guidance and skills, to enable autonomous decision making
(including accountability and the responsibility) for making these decisions within
acceptable parameters, that are part of an organizational culture” (Geroy, Wright & Anderson,
1998). The importance of empowerment is that it assists the organization through qualifying
the employees in primary stage. It is also meant to create trust within the organization
including exerting more work effort that will be countered with reward and motivation
(Geroy, Wright and Anderson, 1998). There are some comments saying that empowerment
should be a long term commitment that can be depicted through the company’s growth
strategy. This is to motivate and encourage loyalty among employees. Employees who have
autonomous decision making capabilities can act as business partners who look for
profitability (Ettorre, 1997). For a school environment, teachers should be empowered in
their teaching so as to offer quality training.
The other pillar of SQM is the strategic leadership which contributes in the
effective quality implementation within the organization and it is one of the core factors of
effective strategic execution (Jooste & Fourie, 2009). Leadership is the basic criteria and point
of difference among the organization. This is because of its effective role in changing the work
of the organization whether positively or negatively. Strategic management requires the
ability to apprehend both the internal and external work environment; this is in addition to
the participation in dealing with complex data (Jooste & Fourie, 2009). Some features have
been identified which can make the leadership is strategic one contributing positively to the
effective strategic implementation as follows:
85
1.
2.
3.
4.
5.
Determining strategic direction
Establishing balanced organizational controls
Sustaining an effective organizational culture
Emphasizing ethical practice. (Jooste & Fourie, 2009).
Effectively managing the organization’s resource portfolio
Also, Richardson referred to the fact that leaders should have sufficient experience,
skills and the necessary knowledge to form the strategy to facilitate the work of the
organization and face the challenges that can appear in the future (1994). The top
management should have leadership strategy to help achieving the organizational goals in
addition to achieving high quality on the first place. The management of the school should
provide leadership by formulating institutional goals and strategies of achievement.
The customer is the main centre of focus in SQM achievement in terms the quality
of organization’s products or services. If the customer needs and requirements are well
identified and high quality objective are targeted to them, the organization is able to achieve
its goals. Ishikawa states that, “quality and customer satisfaction mean the same thing”
(Goetsch and Davis, 2010). Due to the resulting customer satisfaction and its vital role in the
success of the organization, some theories have been set and have become competitive
among countries in general and organizations in particular to achieve customer satisfaction.
During 1998 it was decided to introduce a European Customer Satisfaction Index (ECSI) (see
figure 1) based on some of the ideas that had already been established in the US (ACSI)in
1994, and Sweden (SCSI)in 1989 (Kai, Anne, and Lars, 2000).
It is necessary for an organization to specifying each customer group needs and
develop understanding of quality standards required. “In total quality setting, customer
needs are identified clearly as a normal part of product development. Peter Scholtes, Barbara
Streibil, and Brian Joiner recommend the six-step strategy for identifying customer needs”
(Goetsch and Davis, 2010). The SQM requires that the customer satisfaction be one of its main
strategic objectives. For a school setting, there are various beneficiaries of quality education
ranging from students, parents, teachers, employers and the government. Therefore the
quality of education offered should be able to satisfy particular needs of all the beneficiaries
Moreover, continuous improvement is" the cornerstone of SQM and requires
well-designed and well-executed management of all systems and processes" (Tummala &
Tang, 1996). Quality is a changeable factor whether in the product or the service; it changes
from time to time or from place to another. The change of conditions requires flexibility
within the organization to respond with the new dynamic challenges. The customer is the one
who can specify the quality requirement and the satisfactory grade of it. If the customer has
changed his opinion towards a service that was seen in the past as a service with high quality;
he may see it as a bad service with low quality. It is required from the management to make
continuous changes to get the satisfactory quality.
Tummala and Tang (1996) detailed about how to achieve goals through continuous
improvement in all business processes and on all internal activities of the organization:
adding value to the client through new and optimized products and serves. Products should
be consistent which reduces variation. This reduces wastes and the number of defects which
leads to maintenance of good response and optimization of quality production. This will
actually increase productivity and effectiveness in the use of all resources to keep on
continuous improvement of all operations and of all work unit activities of the organization
(1996). The school should ensure that with the changes in education requirements as well as
government policies regarding schools, it becomes absolutely necessary to improve the
existing quality standards.
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There is a big association between the quality improvement within the organization
and the customer satisfaction which are considered to be the basic elements for Strategic
Quality Management. According to Goetsch and Davis (2010), “It is important to develop the
product to have high quality to guarantee the customer satisfaction. This requires the
continuity in continuous quality improvement”. It is not enough to have customer satisfaction
about the product to gain his loyalty on a one time basis but rather a continued satisfaction
process. The nature of the customer is that once a need is satisfied, it gives rise to new
demands which has to be satisfied.
Strategic Quality Management Core Concepts
In Juran's work "SQM is a systematic approach to setting and achieving quality
objectives throughout the company." The BSI (British Standards Institute) standards (1992)
defined TQM "it as 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". Both definitions recognize the strategic importance of quality
and quality planning without specifying basics that can lead to quality improvement.
The core concepts of Strategic Quality Management are:
1. customer focus (CF)
2. leadership (LDR)
3. continuous improvement (CI)
4. strategic quality planning (SQP)
5. design quality, speed and prevention (DQSP)
6. people participation and partnership (PP&P), and
7. fact-based management (FBM)” (Tummala &Tang).
The seven basic concepts essential in achieving the basic objectives of SQM were
represented in the above figure as the rays of a wheel that goes up the slope towards
customer satisfaction and organizational performance. An analysis of criteria for quality
87
awards indicates that these concepts are included and are considered particularly suitable
for the implementation of strategies to improve quality and achieve excellence.
The given table presents the Malcolm Baldrige criteria against National Award
(MBNQ) and the European Quality Award (EQ) in relation to the basic concepts of SQM.
Comparison of Core Concepts, MBNQ (2013) and EQ (2013) Awards
Malcolm
Baldridge
National Quality Award Core Concept
(www.deming.org)
Leadership Information and Customer
Analysis
Leadership
Strategic Quality Planning
Human Resource
Development Management
of process Quality
European Quality Award
(www.efqm.org)
Focus
Continuous Improvement
Strategic quality Planning
Design Quality, Spend
Prevention
Leadership
Policy
and
Strategy People (Employee)
Management
Partnership and Resources
Processes,
Products
&
Services
Customer Satisfaction
People
(Employee)
Satisfaction
Quality and Operational People Participation and
Impact on Society
Results
Partnership
Customer
focus
and
Fact-Based Management
Business Results
Satisfaction
All quality management models take into account the socio-cultural, political-legal,
economic and educational. The relationship between these factors and the dimensions of
strategic quality management are highlighted.
Ishikawa has designed the "new quality" as a way to manage the entire organization.
For him, the transformation of management related to implementation of six principles:
• Quality first, not short-term profit.
• Customer focus, not the manufacturer.
• The next process is your customer-sectorisation barrier removal.
• Use facts and data to make presentations, using statistical methods.
• Respect for human, as a philosophy of management - management of total involvement.
• Management interoperable.
In the final analysis of the basic concepts of Strategic Quality Management showed
that:
 the target objective of Quality Management (Total, Global, Strategic) is the
SATISFACTION OF THEIR CUSTOMERS;
 the priority target resources of SQM are the PEOPLE;
 SQM is implemented in organizations that target satisfaction and excellence (quality
certification and awards);
 the management in general, and especially Quality management is achieved through
QUALITY;
 the Strategic Management of Quality must be viewed from two angles:
- The strategic dimension of quality (quality value and customer satisfaction);
- Mastering quality (management strategy).
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 Quality and quality strategy, customer satisfaction, should be evaluated and
continuously improved.
Proven strategic importance of quality is no longer much needed, as confirmed since
the first scientific approach to quality. We are at the stage where we need to improve quality
through quality strategy. Current research confirms that SQM is moving towards a new
generation approach for integrating quality and sustainable development approach, which
we will call temporarily Strategic Management - Quality - Sustainable Development (SMQSD).
References
A. Books
Domingo, Arjhel, Pacual, Marilou and Savellano, Joy. (2017). Total Quality Management Instructional Manual
Evans,James R. and Lindsay, William M. (2011). The Management and Control of Quality.International Edition,
South-Western, Cengage Learning
Ramasamy, Subbaraj. (2010). Total quality Management. International Edition, Mc-Graw Hill
Dale, B.G., et.al. (2007). Managing quality. 5th edition, Blackwell Publishing Ltd.
Goetsch D.L., Davis S.B.. (2003). Introduction to TQM for Production, Processing and Services. New Jersey:Prentice
Hall
F. Online Resources
www.school-forchanmpions.com/tqm/principles.htm
http://www.mindtools.com/pages/article/newSTR_75.htm
www.slideshare.net/ieeepkhi/total-quality-organizational-change
http:///www.efqm.org
http://www.emeraldinsight.com
http://asq.org/learn-about-quality/total-quality management/overview/overview.html
http://searchcio.techtarget.com/definition/Total-Quality-Management
https://www.isixsigma.com/methodology/total-quality-management-tqm/introduction-and- implementationtotal-quality-management-tqm/
https://www.inc.com/encyclopedia/total-quality-management-tqm.html
Total Quality Management (TQM) http://www.investopedia.com/terms/t/total-quality-managementtqm.asp#ixzz4dXatnz4J
http://www.managementstudyguide.com/total-quality-management.htm
https://www.thebalance.com/total-quality-management-tqm-2221200
http://www.lifetime-reliability.com/cms/free-articles/work-quality-assurance/what-is-quality/
https://www.isixsigma.com/methodology/total-quality-management-tqm/eight-elements-tqm/
http://www.managementstudyguide.com/elements-of-total-quality-management.htm
http://asq.org/learn-about-quality/total-quality-management/overview/primary-elements.html
http://www.yourarticlelibrary.com/total-quality-management/10-elements-of-total-quality-managementexplained/26182/
https://www.linkedin.com/pulse/20141114160833-362270308-eight-elements-of-total-quality-mamagement
http://study.com/academy/lesson/five-principles-of-total-quality-management-tqm.html
http://asq.org/learn-about-quality/total-quality-management/overview/tqm-gets-results.html
http://www.ugb.ro/etc/etc2014no1/06_Paraschivescu__Caprioara.pdf
http://smallbusiness.chron.com/total-quality-management-strategic-planning-13300.html
https://totalqualitymanagement.wordpress.com/2008/10/04/strategic-quality-planning/
https://bia.ca/quality-excellence-begins-with-strategic-quality-planning/
http://ctb.ku.edu/en/table-of-contents/structure/strategic-planning/vmosa/main
http://pubs.sciepub.com/ajie/1/3/2/
http://mngtguru.com/quality-management-philosophers-and-theircontribution/
https://www.bizmanualz.com/improve-quality/who-are-the-top-quality-gurus.html
www.scribd.com/doc/49579485/contributions-of-management-gurus-to-total-quality-management
https://www.cliffsnotes.com/study-guides/principles-of-management/productivity-and-total-qualitymanagement/major-contributors-to-tqm
89
Assessing Learning
ACTIVITY 14
Name: _____________________________________________
Course/Year/Section: ___________________________
Date: __________________
Score: _________________
Directions: Answer the following questions:
1. How strategic planning relates to total quality management?
2.
Why and when organizations use VMOSA?
3.
What does the term “quality statements” mean? Give and explain the three
types of quality statements.
4.
How do organizations perform their strategic quality planning?
5.
How do organizations build and sustain their successful operation through
strategic quality management?
My Answer:
90
Assessing Learning
ACTIVITY 15
Name: _____________________________________________
Course/Year/Section: ___________________________
Date: __________________
Score: _________________
Directions: Do a research and look for at least 3 examples of VMOSA of certain organization.
Analyze its content and make a comment by sighting your observation.
My Answer:
91