Part One
The Foundations – A Model for TQM
Week # 1 & 2
Understanding quality
Prepared by: Khalid Dahleez
Faculty of Commerce – the Islamic University of Gaza
This material was collected from different sources
Total Quality Management - Spring 2010
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Be on time
Focus on the issues
Keep confidences
Participate positively
Chapter Outline
1.1 Quality and competitiveness
1.2 Understanding and building the quality chains
1.3 Managing processes
1.4 Quality starts with ‘Marketing’
1.5 Quality in all functions
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What is Quality?
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1.1 Quality and competitiveness

Reputation
for quality, reliability, price, and delivery – all things we compete
on

Lessons to be learned about reputation from
this story:
1.
Competitive elements of quality, reliability, delivery, and price.
It takes a long time to change the poor reputation for quality.
Reputations, good or bad, can quickly become national
reputations
The management of the competitive weapons can be learned and
used to turn round a poor reputation.
2.
3.
4.
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1.1 Quality and competitiveness

What is quality?
“meeting the customer requirements”

What is reliability?
“It is the ability of product and service to continue to meet the
customer requirements”

Quality is meeting the customer requirements,
and this is not restricted to the functional
characteristics of the product or services.
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Definition of Quality
Quality is also defined as excellence in the
product or service that fulfills or exceeds the
expectations of the customer.
 There are 9 dimensions of quality that may be
found in products that produce customersatisfaction.
 Though quality is an abstract perception, it has a
quantitative measure- Q= (P / E ) ,
where Q=quality, P= performance(as
measured by the Mfgr.), and E =
expectations( of the customer).

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Quality is not fine-tuning your product at
the final stage of manufacturing, before
packaging and shipping .
 Quality is in-built into the product at
every stage from conceiving –specification &
design stages to prototyping –testing and
manufacturing stages.

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What is Quality

FEIGENBAUM (1983) DEFINED QUALITY AS FOLLOWS
 Quality is total composite product (goods and services)
characteristics, through which the product in use will meet the
needs and expectations of the customers.
 Concept of quality must start with identification of customer
quality requirements and must end only when the finished
product is placed into the hands of the customer who remains
satisfied through various stages of relationship with the seller

American Society of Quality Control (ASQC) and American
National Standard Institute (ANSI) defined
 Quality is totality of features and characteristics of product
(goods and services) that bears on its ability to satisfy given
needs”
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Definitions

ISO 9000:2000
Quality is the degree to which a set of inherent
characteristics fulfils requirements.

Quantified
Q=P/E P-Performance, E-Expectations

Joseph M. Juran
or purpose
Quality is fitness for use
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Definitions
 Philips B Crosby
Quality is Conformance to requirements
W.
Edwards Deming
A predictable degree of uniformity and dependability
at low cost and suited to market
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Approaches to define Quality

Transcendent Approach
 Quality is absolute and universally recognisable.
 It is common notion used by laymen
 There is no subjective judgement and is estimated by
looking at the product

Product Based Approach
 Attributes of a particular product in a specific
category
 These attributes are accepted as bench of quality by
the industry
 Others in the same industry try to produce close to
this quality
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Approaches to define Quality

User Based Approach
 Defined as “Fitness for use”
 Viewed from user’s perspective and is dependent on
how well does the product meet needs of the
consumer.
 Also known as Customer Oriented Approach

Production Based Approach
 An outcome of engineering or operational excellence
and is measured in terms of quality of conformance
 The producer has specifications and produces the
product as per the specifications
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Approaches to define Quality

Value Based Approach
◦ Quality is viewed in context of price
◦ Quality is satisfactory, if it provides desired
performance at an acceptable price
◦ Customer looks at the total value proposition
and not the price alone
Benefits
Value 
Pr ice
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Value-based Approach

Manufacturing
Dimensions
◦
◦
◦
◦
◦
◦
◦
◦
Performance
Features
Reliability
Conformance
Durability
Serviceability
Aesthetics
Perceived quality

Service Dimensions
◦
◦
◦
◦
◦
Reliability
Responsiveness
Assurance
Empathy
Tangibles
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Attributes / Dimensions of Quality

Performance - main characteristics of the
product/service

Aesthetics - appearance, feel, smell, taste

Special Features - extra characteristics

Conformance - how well product/service
conforms to customer’s expectations

Reliability - consistency of performance
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Attributes / Dimensions of Quality(Cont’d)

Durability - useful life of the product/service

Perceived Quality - indirect evaluation of
quality (e.g. reputation)

Serviceability - service after sale
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Service Quality
Convenience
 Reliability
 Responsiveness
 Time
 Assurance
 Courtesy
 Tangibles

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Examples of Service Quality
Dimension
Examples
1. Convenience
Was the service center conveniently located?
2. Reliability
Was the problem fixed?
3. Responsiveness
Were customer service personnel willing and
able to answer questions?
4. Time
How long did the customer wait?
5. Assurance
Did the customer service personnel seem
knowledgeable about the repair?
6. Courtesy
Were customer service personnel and the
cashier friendly and courteous?
7. Tangibles
Were the facilities clean, personnel neat?
Challenges with Service Quality
Customer expectations often change
 Different customers have different
expectations
 Each customer contact is a “moment of
truth”
 Customer participation can affect
perception of quality
 Fail-safing must be designed into the
system

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Examples of Quality Dimensions
Dimension
(Product)
Automobile
(Service)
Auto Repair
1. Performance
Everything works, fit &
finish
Ride, handling, grade of
materials used
Interior design, soft
touch
All work done, at agreed
price
Friendliness, courtesy,
Competency, quickness
Clean work/waiting area
2. Aesthetics
3. Special
features
Gauge/control
placement
Cellular phone, CD
player
Location, call when
ready
Computer diagnostics
Examples of Quality Dimensions (Cont’d)
Dimension
(Product)
Automobile
(Service)
Auto Repair
5. Reliability
Infrequency of breakdowns
Work done correctly,
ready when promised
6. Durability
Useful life in miles, resistance to Work holds up over
rust & corrosion
time
7. Perceived
quality
Top-rated car
Award-winning service
department
8. Serviceability Handling of complaints and/or
requests for information
Handling of complaints
Evolution of Quality Management
Total Quality
Control
Company
wide Quality
Control
Quality
Assurance
Mass
Inspection
Quality
Control
(Acceptance
Sampling)
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Evolution of Quality Management

Mass Inspection







Inspecting
Salvaging
Sorting
Grading
Rectifying
Rejecting
Quality Control

Quality Assurance
 Emphasis on prevention
 Proactive approach using SPC
 Advance quality planning

Total Quality Control
 All aspects of quality of inputs
 Testing equipments
 Control on processes
 Quality manuals
 Product testing using
SQC
 Basic quality planning
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Quality Management Evolution
Proactive
Approach
Prevention
Total Quality
Management
4
Stop defects at source.
Zero defects
Quality
Assurance
3
Reactive
Approach
Detection
2
Quality
Control
Incorporates QC/QA activities into
a company-wide system aimed at
satisfying the customer.
(involves all organizational
functions)
Planned and systematic actions to
insure that products or services
conform to company requirements
Operational techniques to
make inspection more
efficient & to reduce the costs
of quality. (example: SPC)
Finding & Fixing
mistakes
1
Inspection
Inspect products
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The Acceptance Inspection Model
Process
Acceptance
Sampling
Inspection
Pass the Inspection?
NO
YES
Acceptance
Reject, Scrap, Rework, Repair
Next Process
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Quality Control
 Quality Control (QC) - “the operational
techniques and activities that are used to fulfil
requirements for quality”.
 The purpose of quality control is to uncover defects
and have them corrected so that defect-free products
will be produced.
 Quality control is limited to looking at products .
 Quality control is testing the final product against
product quality standards.
 Quality control is operational techniques that are used
to fulfill requirements for product quality.
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Quality Control
It is that part of Quality Management focused on
fulfilling requirements of the Customers for the
quality products.
A Simplest Form of Quality Control is:Requirements
Plan
Do
Check
Conforms
Yes
Remedial
Action
No
Corrective
Action
Product
Or
Service
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Quality Assurance

Quality Assurance (QA) - “all planned and systemic activities
necessary to provide adequate confidence that a product or
service will satisfy given requirements for quality”.

Quality assurance is oriented toward preventing defects.

It is defined by those activities that modify the development processes
to prevent the introduction of defects.

Quality assurance is more concerned with the processes that produce
the final product, and making sure that quality is part of each phase.

QA is about maturing the process towards minimum defect.

It is about balancing methodology, leadership, and technology.

It is about taking into account human factors as well as technological
ones.
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Total Quality Assurance
Total Quality Assurance
Total Quality Management
Total Quality Management
Quality Assurance
Quality Assurance
(Process improvement)
Quality Control
Quality Control
(Correction of Defects)
Inspection
Inspection
(Sorting out good from bad
products)
Total Quality
Management - Spring 2010
The Phases of Development of Quality Assurance
Systems
30
Evolution of Quality Management

Company wide Quality Control
 Measured in all functions connected with production
such as






R&D
Design
Engineering
Purchasing,
Operations etc
Total Quality Management
 Measured in all aspects of business,
 Top management commitment
 Continuous improvement
 Involvement & participation of employees
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Evolution of Quality Management
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TQM Evolution
Evolution
TQM
Quality
Control
Quality
Assurance
Foreman
Operator
1900
1918
1920
1940
1980
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What is Total Quality
Management (TQM)?
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TQM
Total
Made up of the whole
Quality
Degree of excellence a
product or service
provides
Management
Art of Planning,
Organizing,
Controlling etc.
Therefore, TQM is the art of managing the whole to achieve excellence.
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Meaning of TQM
System
TQM means
Method
Purpose
All persons
Of all divisions
At every stratum
MBO, Kaizen, QC Circle, 5S, TPM
SQC,SPC, FMEA, MSA, OEE
Q(Quality):Quality improvement
C(Cost):Cost reduction
D(Delivery):Delivery execution
S(Safety):Safety maintenance
M(Morale):Morale boosting
E(Environmental):Environmental protection
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Definition of TQM
Systematic activities of operating the whole units of a
company effectively and efficiently to supply goods
and services of quality satisfactory to customers at
right time and at right price, thus contributing to
attaining Business Purposes.
TQM is integrated organisational approach in delighting
customers (both internal and external) by meeting their
expectations on a continuous basis through everyone
involved in the organisation, working on continuous
improvement in all products, services, and processes
along with proper problem solving methodology.
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Definition of TQM
"TQM is a management approach for an organization, centered
on quality, based on the participation of all its members and
aiming at long-term success through customer satisfaction, and
benefits to all members of the organization and to society.”
Total Quality Management (TQM) is a management strategy
aimed at embedding awareness of quality in all organizational
processes.
Total Quality Management means that the organization's
culture is defined by and supports the constant attainment of
customer satisfaction through an integrated system of tools,
techniques, and training. This involves the continuous
improvement of organizational processes, resulting in high
quality products and services.
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What’s the goal of TQM?
“Do the right things right the
first time, every time.”
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Pillars of TQM
1- Customer Focus: Studying customer needs, gathering customer
requirements, and measuring and managing customer satisfaction.
Customer satisfaction is seen as the company's highest priority.
The company believes that it will only be successful if its
customers are satisfied.
2- Process Management: Develop a production process that
reduce the product variations. Applying the same process; the
same product should be produces with the same level of quality
every time.
Teams are process-oriented, and interact with their internal
customers to deliver the required results. Management's focus is
on controlling the overall process, and rewarding teamwork.
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Pillars of TQM
3- Employee Empowerment (Human side of Quality): TQM
environment requires a committed and well-trained work force
that participates fully in quality improvement activities.
On-going education and training of all employees supports the
drive for quality.
4- Continuous Improvement: TQM recognizes that product quality
is the result of process quality. As a result, there is a focus on
continuous improvement of the company's processes.
This will lead to an improvement in process quality. In turn this
will lead to an improvement in product quality. Measurement and
analysis id the tool that has been used for that.
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Pillars of TQM
T. Q. M.
Customer
Focus
Process
Management
Employee Training
& Empowerment
Continuous Improvement
(through measurement and analysis)
• Reduce rework activities
• Shorter development cycle
• Increased customer satisfaction
(Cost reduction)
(Cost reduction)
(Quality improvement)
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TQM six basic Concepts
1.
Management commitment to TQM principles and
methods & long term Quality plans for the
Organization
2.
Focus on customers – internal & external
3.
Quality at all levels of the work force.
4.
Continuous improvement of the production/business
process.
5.
Treating suppliers as partners
6.
Establish performance measures for the processes.
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Another way to put it

At it’s simplest, TQM is all managers
leading and facilitating all contributors in
everyone’s two main objectives:
(1) total client satisfaction through quality
products and services; and
(2) continuous improvements to
processes, systems, people, suppliers, partners,
products, and services.
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Continuous Improvement versus
Traditional Approach
Traditional Approach
Market-share focus
 Individuals
 Focus on ‘who” and “why”
 Short-term focus
 Status quo focus
 Product focus
 Innovation
 Fire fighting

Continuous Improvement
Customer focus
 Cross-functional teams
 Focus on “what” and “how”
 Long-term focus
 Continuous improvement
 Process improvement focus
 Incremental improvements
 Problem solving

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BASIC PRINCIPLES/APPROACHES OF TQM
Approach
Management Led
Scope
Company Wide
Scale
Everyone is responsible for Quality
Philosophy
Prevention not Detection
Standard
Right First Time
Control
Cost of Quality
Theme
On going Improvement
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Understanding and building the quality chains

“A Customer’s impression of quality begins with the initial
contact with the company and continues through the life of
the product.”
◦
Customers look to the total package - sales, service during
the sale, packaging, deliver, and service after the sale.
◦
Quality extends to how the receptionist answers the phone,
how managers treat subordinates, how courteous sales and
repair people are, and how the product is serviced after the
sale.

“All departments of the company must strive to improve
the quality of their operations.”
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Understanding and building the quality chains

Meeting the customer requirements within the
organization.

Failure (QC manager and others)

Failure not doing it right the first time at every stage of
the process.

Throughout and beyond all organizations -manufacturing
& service- there is a series of quality chains of customer
and supplier.

Quality chains may be broken at any point, customer
not satisfied.
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Understanding and building the quality chains
To achieve quality throughout an organization, each
person in the quality chain must interrogate every
interface as follows:
Customers:
who are my immediate customers?
what are their true requirements?
how can I measure my ability to meet the requirements?

Suppliers:
who are my immediate suppliers?
what are my true requirements?
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Understanding and building the quality chains

The concept of internal and external customers/suppliers
forms the core of total quality.

Quality has to be managed – it will not just happen.

Failure to meet the requirements in any part of quality
chain leads to yet more failure.

The price of quality is the continual examination of the
requirements and our ability to meet them “continuing
improvement” philosophy.
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Customer types




External and Internal customers
External – current, prospective and lost
customers
Internal – Every person in a process is a customer of
the previous operation.( applies to design, manufacturing,
sales, supplies etc.) [Each worker should see that the
quality meets expectations of the next person in the
supplier-to-customer chain ]
TQM is commitment to customer-focus - internal and
external customers.
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Customer/supplier chain
Outputs to external customers
Inputs from external customers
Internal customers
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Internal customer/Supplier relationships

Questions asked by people to their internal
customers
 What do you need from me?
 What do you do with my output?
 Are there any gaps between what you need and what you
get?

Good team-work and inter-Departmental
harmony is required. Also the leaders role in
supervising the internal customer-supplier chain.
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Internal\External Customers
Improvements
Improvements
External
Suppliers
Requirements
Internal
Suppliers
Internal
Suppliers
External
Customer
Requirements
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Understanding and building the quality chains
Meeting the requirements
 the first item on the list of things to do is find out what
requirements are.
 If we are dealing with a customer/supplier relationship,
the supplier must understand not only the needs of the
customer but also the ability of his own organization to
meet them.
 Internal supplier/customer relationships are often the
most difficult to manage in terms of establishing the
requirements.

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Customer satisfaction
Customer is the Boss or ’King’
 Customer dictates the market trends and
direction
 Customer not only has needs to be supplied( basic
performance functions)
 Also he ‘wants what he wants!’( additional features
satisfy him and influence his purchase decision)
 Hence the Suppliers and Manufacturers have to
closely follow at the heel of the customer.

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Customer Satisfaction Organizational Diagram
CUSTOMERS
Front-line Staff
Functional
Department
Staff
Sr.
Mgrs
CEO
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What is customer satisfaction?
Is it due to Product quality?
 Is it due to pricing?
 Is it due to good customer service ?
 Is it due to company reputation?
 Is it something more?

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Integrated Quality
Customer
Customer
Requirements
Selling Price
Customer
Schedule
Quality
Cost
Delivery
Process
Capability
Production Cost
Process Speed
Supplier
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Understanding and building the quality chains

To understand how quality may be built into a product
or service, at any stage, it is necessary to examine the
three distinct, but interrelated aspects/parameters of
quality:
1. Quality of Design
2. Quality of Conformance
3. Quality of Use
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Understanding and building the quality chains
Quality of Design: Is the extent to which the
design reflects a products or service that
satisfies the customer need or expectations.
 TV chair example
 Quality of design is a measure of how well the product or
service is designed to achieve the agreed requirements.
 The most important feature of the design, with regard to
achieving quality, is the specification.
 Specifications must also exist at the internal supplier/customer
interfaces.
 There must be an agreement that the operating departments
can achieve that requirement.
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Understanding and building the quality chains
Quality of conformance to design: Is the extent
to which the product or service conforms to the
design standard

What the customer actually receives should conform to the design.

The conformance check makes sure that things go according to plan.

Organizations may use the simple matrix to assess how much time spent
doing the right things right.
Right
Things we do
Right
Wrong
Wrong
The way we do them

X
X
?
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Understanding and building the quality chains
Quality of Use
Is the extent to which a product is easy to use, reliable
and maintainable.
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How Work Gets Done in an Organization?

Inputs
Delivered by suppliers

Processes
Steps to transform inputs

Outputs
customers
Goods and Services valued by
Quality of outputs depends on the correct execution of
FIRST two steps. A mistake anywhere in the process
affects everyone in one way to another.
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Managing processes
Have we done the job correctly?
 This is not quality control, it is detection.
 This process –detection- happens at the end of the
processes.
 Are we capable of doing the job correctly?
 We should realize that an answer will only be obtained
by means of satisfactory methods, materials, equipment,
skills and instruction, and a satisfactory ‘process’.

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Managing processes
What is a process?
 A process is the transformation of a set of inputs, which
can include actions, methods and operations, into
outputs that satisfy customer needs and expectations, in
the form of products, information, services or –
generally- results.
 To produce an output meets the requirements, it is
necessary to define, monitor and control the inputs to
the process.
 Every single task throughout an organization must be
viewed as a process.

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Managing processes
Materials
S
U
P
P
L
I
E
R
S
Product
Procedures
Methods
Service
Information
Process
People
Information
Skills
Knowledge
Training
Paperwork
C
U
S
T
O
M
E
R
S
Equipment
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Managing processes

If our process is capable of meeting the requirements,
“Do we continue to do the job correctly?”, this
needs to monitor and control the process.
Have we done
the job correctly?
Detection
Are we capable of
doing the job correctly?
Do we continue
to do the job correctly?
Prevention
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Managing processes
Quality control
 The activities and techniques employed to achieve and
maintain the quality of a product, process, or service.
 A set of activities designed to evaluate a developed
work product.
 It is concerned with finding and eliminating causes of
quality problem.

 Finding defects in specific deliverables.
 It is product – oriented.
 Focuses on employed activities and techniques.
 Examples (testing, monitoring, ….)
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Managing processes
Quality assurance
 The prevention of quality problems through planned
and systematic activities (including documentation).
 A set of activities designed to ensure that the
development and/or maintenance process is adequate
to ensure a system will meet its objectives.

 Ensure that the process is defined and appropriate.
 Process-oriented.
 Aims at preventing quality problems.
 Examples (development of methodology & standards,
establishment of QMS, …..)
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Quality starts with ‘Marketing’
Marketing is responsible for determining the key
characteristics that determine the suitability of the
product or service in the eyes of the customer.
 Excellent communication between customers and
suppliers is the key to total quality.
 Requirements must be communicated properly
throughout the organization in the form of
specifications which can be used as the basis for the
design .

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Quality starts with ‘Marketing’

The information requirements include:
1. Characteristics of performance & reliability
2. Aesthetic characteristics
3. Any obligatory regulations or standards governing the nature of
the product or service

Marketing must also establish systems for
feedback of customer information and reaction,
and these systems should be designed on a
continuous monitoring.
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Quality starts with ‘Marketing’
In reviewing of market readiness of a new
product or service. Items that require some
attention include assessment of:

1.
2.
3.
4.
The suitability of the distribution & customer-service system
training of personnel in the field
Availability of spare parts or staff support
Evidence that the organization is capable of meeting customer
requirements
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User purchase perceptions- from survey
Performance
 Features
 Service
 Warranty
 Price
 Reputation
( refer pgs.72 and 73, Besterfield)

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Customer satisfaction/dissatisfaction feedback
Customer feedback has to be continuously
sought and monitored - not one-time only!( Proactive! Complaints are a reactive method of
finding out there is a problem)
 Customer feedback can be relayed to Mfgr.
 Performance comparison with competitors can
be known
 Customers needs can be identified
 Relative priorities of quality can be obtained from
the horses’ mouth!
 Areas for improvement can be noted.

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Customer feedback methods









Comment cards enclosed with warranty card when
product is purchased.
Customer survey and questionnaire
Customer visits
Customer focus groups
Quarterly reports
Toll-free phones
e-mail, Internet news groups, discussion forums
Employee feedback
Mass customization.
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Customers- Handle with care!
Employers don’t pay wages but it is the
customer who pays the wages!
 So take good care of your customers.
 Customer-care centers not just profitcenters!
 The entire organization must in effect
revolve around the customer – whether
the customer is being well served and if he
is really pleased, contented and satisfied
with the service you have to offer.

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Quality in all functions




For an organization to be truly effective, each
part of it must work properly together.
Errors have a way of multiplying.
Business employs so many different specialist
skills that everyone has to rely on the activities
of others in doing their jobs.
The commitment of all members of an
organization is a requirement of ‘company-wide
quality improvement’.
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Effects of poor Quality
1.
2.
3.
4.
5.
6.
7.
8.
9.
Low customer satisfaction
Low productivity, sales & profit
Low morale of workforce
More re-work, material & labor costs
High inspection costs
Delay in shipping
High repair costs
Higher inventory costs
Greater waste of material
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Benefits of Quality
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
Higher customer satisfaction
Reliable products/services
Better efficiency of operations
More productivity & profit
Better morale of work force
Less wastage costs
Less Inspection costs
Improved process
More market share
Spread of happiness & prosperity
Better quality of life for all.
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Summary Slide

The following Slides are for understanding
only (subject to indirect Questions): “
26,27,28,29,36,45,54,56,57,58,59,74,75,76,
77”

Other slides are required and subjects to
any type of Questions
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