CBMEC 1 – OPERATIONS MANAGEMENT (TQM)
Dr. Maria Blanca S.Sy
6
Lecture 2 – INTRODUCTION TO QUALITY
Understanding Quality
Definitions of Quality
 A degree of excellence (The Concise Oxford Dictionary)
 Fitness for purpose (Defoe and Juran, 2010)
 Conformance to requirements (Crosby, 1979)
 A dynamic state associated with products, services, people, processes and environments that meets or
exceeds expectations and helps produce superior value (Goetch and Davis, 2010)
Dimensions of Quality
 Performance – primary product characteristics
 Features – Secondary characteristics
 Conformance – Meeting specifications or industry standards workmanship
 Reliability – Consistency of performance over time, average time for the units to fail
 Durability – Useful life of the product, including repairs
 Service – Resolution of problems and complaints, ease of repair
 Response – Human to human interface, such as the courtesy of dealer
 Aesthetics – Sensory characteristics, such as appearance
 Reputation – Past performance and other intangibles
Quality and Procedures
 Process – The transformation of a set of inputs into outputs that satisfy customer needs and
expectations, in the form of product, information and services.
 Quality Assurance – Making sure that the product or service represents the output from an effective
system to ensure capability and control. It is the prevention of quality problems through planned and
systematic activities.
 Quality control – The activities and techniques employed to achieve and maintain the quality of a
product, process, or service. It is concerned with finding and eliminating causes of quality problems so
that the requirement of the customer is continually met.
Quality vs. Total Quality
Total Quality – It is an approach to doing business that attempts to maximize the competitiveness of an
organization though continual improvement of the quality of its products, services, people, processes, and
environments.
The Critical Components of Total Quality Management
 Strategically-based – Total quality organizations must have a comprehensive strategic plan that contain
the vision, mission, broad objectives and activities that must be completed to accomplish the broad
objectives. The strategic plan would give the organization a sustainable competiti ve advantage in the
marketplace.
 Customer-focused (internal and external) – In a total quality setting, the customer is the driver. This applies
to both internal and external customer. External customers help define the quality of the product or
services delivered, while internal customers define the quality of the people, processes, and environments
associated with the products or services.
 Obsession with quality – In a total quality organization, the internal and external customers define quality.
All personnel at all levels approach all aspects of the job from the perspective of “How can we do
this better?”
JRMSU – College of Business and Accountancy
CBMEC 1 – OPERATIONS MANAGEMENT (TQM)
Dr. Maria Blanca S.Sy
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Scientific approach to decision making and problem-solving – Total quality involves both people skills and
using hard data to establish benchmarks, monitor performance, and make improvements.
Long-term commitment – Total quality management is a new way of doing business that requires a new
corporate culture. Its implementation should involve a long-term commitment that is necessary for success.
Teamwork – In traditionally managed organizations, internal competition tends to use energy that should
be focused on improving quality. There should be more teamwork in total quality organizations.
Continual process improvement – In traditionally managed organizations, internal competition tends to use
energy that should be focused on improving quality. There should be more teamwork in total quality
organizations.
Education and training – These are fundamental to total quality because they are the best way to improve
people on a continual basis.
Freedom through control – Involving and empowering employees is necessary in total quality, as a way to
bring more minds to the decision making process and increase the ownership employees feel about
decisions that are made.
Unity of purpose – To apply the total quality approach, organizations must have unity of purpose. Internal
politics have no place in a total quality organization.
Employee involvement and empowerment – Empowerment is not just about involving people, it allows
them to have a real voice in the organization.
Peak performance as a top priority – When effectively practiced, total quality allows every aspect of an
organization to operate at peak levels. This means that both people and processes are operating at their
best.
Quality vs. Total Quality
Productivity vs quality
How quality is defined
Traditional view
Productivity and quality are
always in conflict. You cannot have
both.
Meeting customer specifications
Total Quality View
Lasting productivity gains are
made only as a result of quality
improvements.
Satisfying customer needs and
exceeding customer
expectations.
Establishing high performance
benchmarks for customer satisfaction
and then continually
improving performance.
How quality is
measured
Establishing an acceptable level of
nonconformance and measuring
against benchmark.
How quality is
achieved
Quality is inspected into the
product
Quality is determined by product and
process design and achieved
by effective control techniques
Attitude towards
defects
Defects are an expected part of the
product. Measuring defects per
hundred is an acceptable
standard.
Defects are to be prevented using
effective control systems and should be
measured in defects
per million.
Quality as a function
Quality is a separate function
Responsibility for quality
Employees are blamed for poor
quality
Supplier relationships
Supplier relationships are short term
and cost driven
Quality should be fully integrated
throughout the organization
At least 85% of the quality
problems are the management’s
fault.
Supplier relationships are long term and
quality oriented.
JRMSU – College of Business and Accountancy
CBMEC 1 – OPERATIONS MANAGEMENT (TQM)
Dr. Maria Blanca S. Sy
8
Models and Frameworks for Total Quality Management
Deming’s 14 Points for Management
1. Create constancy of purpose for improving products and services.
2. Adopt the new philosophy.
3. Cease dependence on inspection to achieve quality.
4. End the practice of awarding business on price alone; instead, minimize total cost by working with a
single supplier.
5. Improve constantly and forever every process for planning, production and service.
6. Institute training on the job.
7. Adopt and institute leadership.
8. Drive out fear.
9. Break down barriers between staff areas.
10. Eliminate slogans, exhortations and targets for the workforce.
11. Eliminate numerical quotas for the workforce and numerical goals for management.
12. Remove barriers that rob people of pride of workmanship, and eliminate the annual rating or merit
system.
13. Institute a vigorous program of education and self-improvement for everyone.
14. Put everybody in the company to work accomplishing the transformation.
Juran’s 10 Steps to Quality
1. Build awareness of opportunity to improve.
2. Set-goals for improvement.
3. Organize to reach goals.
4. Provide training
5. Carryout projects to solve problems.
6. Report progress.
7. Give recognition.
8. Communicate results.
9. Keep score.
10. Maintain momentum by making annual improvement part of the regular systems and processes of
the company.
Phil Crosby’s Four (4) Absolutes
 Definition – The definition of quality is conformance to requirements
 System – The system of quality must focus on prevention, not appraisal, of defects
 Performance standard – the performance standard is zero defects
 Measurement – The measurement of quality is the price of nonconformance.
4P’s of Total Quality Management
 Planning – The development and deployment of policies and strategies.
 Performance – Establishing a performance measure framework – a balance score card for the
organization carrying out self-assessment, audits, reviews and benchmarking.
 Processes – Understanding, management, design, and redesign of quality management systems and
continuous improvement.
 People – Managing the human resources, culture change, teamwork, communications, innovation and
learning.
JRMSU -College of Business and Accountancy
CBMEC 1 – OPERATIONS MANAGEMENT (TQM)
Dr. Maria Blanca S. Sy
9
Assessment: Activity 1: Individual Case
Instruction:
This is an individual independent activity. Just answer the questions briefly but
concisely and using TQM concepts if applicable. Turn in your answer in our Google class.
JRMSU -College of Business and Accountancy
CBMEC 1 – OPERATIONS MANAGEMENT (TQM)
Dr. Maria Blanca S. Sy
10
Lecture 3
Management in Total Quality
Management Responsibility in Total Quality
 The implementation of the quality policy involves everyone, but only the management can provide the
leadership needed to achieve results. Management should practice the philosophy of Management By
Walking Around (MBWA), in order to be updated to what is happening with the processes of the company.
 Management must also encourage employees to think for themselves. In TQM, the manager’s role is
no longer to make the final decision, but to ensure that the team’s decision is in line with
the quality objectives of the organization.
 The management must be informed of the topic of quality improvement. They may read books and articles,
attend seminars, and talk with TQM leaders. The more knowledge about TQM a leader is, the easier the
progression to TQM will be.
 The resources that the employees need to use TQM tools and techniques must be provided. This includes
training and the equipment needed for TQM.
 Managers must find time to celebrate the success of their organization’s quality efforts by
participating in award and recognition programs. This is an excellent opportunity to reinforce the
importance of TQM. Additional provisions must also be made to reward teams as well as individuals.
 Managers must also be visibly and actively engaged in the quality effort by serving on teams, advising teams,
and teaching seminars. They should lead by demonstrating, communicating, and reinforcing the quality
objectives.
 Managers must also listen to the internal and external customers and suppliers through visits, focus group
discussions and surveys. They must also create awareness of the importance of TQM and provide results in
an ongoing manner.
Effective Leadership according to the 4P’s model of TQM
Planning
 Develop a vision needed for constancy of purpose and for long-term success.
 Develop, deploy, and update policy and strategy.
 Align organizational structure to support delivery of policy and strategy.
Performance
 Identify critical measures of performance
 Develop measures to indicate levels of current performance.
 Set goals and measure progress towards their achievement
 Provide feedback to people at all levels regarding their performance against agrees goals.
Processes
 Ensure that a system for managing processes is developed and implemented.
 Ensure, through personal involvement, that a management system is developed, implemented and
continuously improved.
 Prioritize improvement activities to ensure that they are planned on an organization-wide basis.
People
 Train managers and team leaders at all levels in leadership skills and problem solving
 Stimulate empowerment and teamwork to encourage creativity and innovation.
JRMSUV- College of Business and Accountancy
CBMEC 1 – OPERATIONS MANAGEMENT (TQM)
Dr. Maria Blanca S. Sy
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Encourage, support, and act on the results of training, education and learning activities.
Motivate, support, and recognize the organization’s employees – both individually and in
teams.
Help and support people to achieve plans, goals, objectives and targets.
Respond to people and encourage them to participate in improvement activities.
Customers
 Be involved with customers and other stakeholders
 Ensure customer (external and internal) needs are understood and responded to.
 Establish and participate in partnerships
Commitment
 Be personally and actively involved in quality and improvement activities
 Review and improve effectiveness of own leadership
Culture
 Develop the values and ethics to support the creation of a total quality culture across the entire supply
chain.
 Implement the values and ethics through actions and behaviors.
 Ensure creativity, innovation, and learning activities are developed and implemented.
Communications
 Stimulate and encourage communication and collaboration
 Personally communicate the vision, mission, policies and strategies
 Be accessible and actively listen.
The Duties of the Quality Council (Besterfield, 1994)
 Develop with input from all personnel, the core values, vision statement, mission statement and quality
policy statements.
 Develop the strategic long-term plan with goals and the annual quality improvement program with
objectives.
 Create the total education and training and development plan.
 Determine and continually monitor the cost of poor quality.
 Determine the performance measures for the business organization, approve these for the functional
areas, and monitor them.
 Continually determine those project and departmental or work gr oup teams and monitor their progress.
 Establish or revise the recognition and reward system to account for the new way of doing business.
Quality in the Organization
Quality Statements
 Vision Statement – this is a declaration of what the organization should look like five (5) to 10 years in the
future. It is a realistic picture of what it wants to become and what is possible. The vision statement is short
and consist of a few sentences.
 Mission statement – this statement identifies who the organization is in the market, their customers, what
do their do and how do they do it. It describes the function of the organization and a sense of purpose for
employees, customers and suppliers.
JRMSUV- College of Business and Accountancy
CBMEC 1 – OPERATIONS MANAGEMENT (TQM)
Dr. Maria Blanca S. Sy
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12
Quality policy – This serves as 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 employees
and approved by the quality council.
Characteristics of Quality Policy Statement
 Meets the needs of the internal and external customers.
 Equals or exceeds the competition.
 Continually improves the quality.
 Includes business and production practices.
 Utilizes the entire personnel.
Core Values – In an organization, these define what is most important, how other people should be treated, and
how people within the organization work together. They provide an anchor when a business organization or
individual is undergoing change. They will help the business organization to:
 Create an atmosphere of common purpose and trust
 Clarify goals and the ways that those goals can be achieved.
 Set priorities and sort out information overload.
 Provide a clearer focus for performance and feedback.
 Indicate which behaviors are acceptable and appropriate and which are not within the business.
Core Values of Total Quality Management
 Customer-Driven Quality – Quality is driven by the customer. Value, satisfaction and preferences may all be
influences by many factors throughout the customer’s purchase, ownership and service
experiences. These factors include the organization’s relationship with customers that helps
build trust, confidence and loyalty. It is a strategic concept; it is directed towards customer retention and
market-share gain. An organization that is customer-driven focus needs to address all stakeholders – the
customers, employees, suppliers, stockholders, and the general public.
 Leadership – Leaders in the business organization should create customer awareness, set a clear and visible
quality values, and high expectations. Reinforcing those values would require personal commitment and
involvement. The leader must participate in the creation of strategies, systems, and methods for attaining
excellence. The leader serves as role models reinforcing the core values and encouraging leadership in all
levels of management.
 Continuous improvement – This term includes both incremental and “breakthrough”
improvements. The approach to improvement needs to be included in the way the organization functions.
This means that:
o Improvement is a part of the daily work of all work units;
o Improvement processes seek to eliminate problems at their source; and
o Improvement is driven by opportunities to do better as well as problems that must be corrected.
 Employee participation and Development – Continuous improvement of organizational performance
depends on the abilities, skills and motivation of the employees. Employee success largely depends on
having meaningful opportunities to learn and to practice new skills. Organizations need to invest in the
development of employees through education, training and creating opportunities for continuous growth.
JRMSUV- College of Business and Accountancy
CBMEC 1 – OPERATIONS MANAGEMENT (TQM)
Dr. Maria Blanca S. Sy
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Fast Response – Faster response time is often critical to business organizations. Major improvements to
the response time often require simplification of work organizations and processes. These improvements
can also lead to improvements in quality and productivity.
Design Quality and Prevention – In general, the cost of preventing problems at the design stage are much
lower than correcting problems on products that have already reached the customers. Design quality
includes the creation of robust or error-tolerant processes and products.
Long-Range Outlook – Attaining quality and market leadership requires a business organization to have a
strong future orientation and a willingness to make long-term commitments to all stakeholders of the
business. A major part of the long-term commitment of the business is the development of personnel and
suppliers, and fulfilling public responsibilities.
Management by Fact – Facts and data are needed for quality improvement and quality assessment. The
data obtained, and the analyses that would be done, will also help improve performance and determine
performance indicators. Performance indicators are measurable characteristics of products, services, and
operations that the organization can use to track performance. These indicators should be selected to best
represent the factors that lead to improved customer satisfaction and operational performance.
Partnership Development – Business organizations should establish internal and external partnerships to
better accomplish their overall goals. Internal partnerships i nclude those that promote labor management
cooperation. External partnerships include those with customers, suppliers and education organizations.
Corporate Responsibility and Citizenship – Corporate responsibility refers to the exercise of the
organization’s business ethics and efforts made for the protection for public health, public
safety, and the environment. Health, safety and environmental consideration must be considered in the
business operations, as well as the life cycle of products and services. Corporate citizenship refers to the
leadership and support of publicly important purposes within reasonable limits of an organization’s
resources. These purposes might include education, environmental excellence, resources
conservation, community services, improving industry and business practices, and sharing of quality-related
information
Quality and Culture
Culture – The everyday manifestation of an organization’s underlying values and traditions.
Quality Culture – An organizational value system that results in an environment that is conducive to the
establishment and continual improvement of quality.
Traditional vs. Quality Culture
Traditional Culture
Quality Culture
Primary focus is on return on
Primary
focus
Operating Philosophy
is on
customer
investment and short-term profits
satisfaction.
Typically
adopts
short-term
Adopts both long-term and shorter,
Objectives
objectives
objectives within the context of an
organizational vision.
Management approach
Attitude
customers
towards
Managers think and employees
do what they’re told
More importance is placed on
internal
needs
rather
than
JRMSUV- College of Business and Accountancy
Managers are seen as coaches of
the team.
More customer-focused;
customer
satisfaction is the highest priority.
CBMEC 1 – OPERATIONS MANAGEMENT (TQM)
Dr. Maria Blanca S. Sy
14
Problem-solving
approach
customer needs.
When problems occur, decision makers
and employees tend to spend energy
deflecting or assigning blame.
Supplier relationship
Pressure is exerted on the suppliers to
bring down prices and speed p delivery
Performance- improvement
approach
Performance
improvement
is Continual
improvement
of
erratic and is often triggered by problems. processes, people, product, working
environment and performance.
When problems occur, focus is on identifying
and isolating the root cause so that the
problem, and not just its symptoms, can be
eliminated.
Suppliers are viewed as partners; suppliers
work cooperatively with the business to
continually improve the relationship and
performance of
both.
Laying the Foundation for a Quality Culture
 Understand – The executive managers must have an understanding of the quality culture
concept and their role in establishing and maintaining that culture. The quality culture is set by
the CEO and the executive managers. Without the buy-in and commitment from the manager,
there can be no quality culture.
 Assess – A comprehensive assessment of the existing corporate culture as it relates to quality
must be completed. All employee should be allowed to complete the survey instrument without
attribution, and the organization-wide average for each criterion should be compiled.
 Plan – Based o the results of the survey, the organization must develop a comprehensive plan
for establishing quality culture.
 Expect – It is important that the management ensures that all personnel know that qualitypositive attitudes and behaviors are expected.
 Model – The management must consistently be positive role models of the quality- related
attitudes and behaviors expected of personnel. Employees are more likely to follow the
behavior of management than their words.
 Orient – New employee orientation should have a comprehensive quali ty component. It
is important to begin emphasizing the organization’s quality-related expectations during
the employee’s initial exposure to the organization.
 Mentor – Many organizations use mentors to help in the development of employees. Usually,
mentors provide technically oriented assistance, such as helping new personnel learn new
skills. But organizations can also help their new personnel develop quality- positive attitudes
and behavior.
 Train – In training, it is important to help personnel understand not just the “how” of
quality, but also the “why”. There is a need to expand quality training beyond
the typical
technical topics to include attitudinal and behavioral topics, as well. Their personnel need to
understand that the organization’s survival may depend on how well the firm
competes in the market in terms of quality.
 Monitor – It is important that supervisors monitor the quality-related attitudes and behaviors
and reinforce them with what they observed. When quality-negative behaviors are observed,
they should be corrected immediately.
 Reinforce and maintain quality – A recognition and reward system must include quality as a
criterion. It should be a factor in all decisions about raises, promotions, and recognition awards.
JRMSUV- College of Business and Accountancy
the
CBMEC 1 – OPERATIONS MANAGEMENT (TQM)
Dr. Maria Blanca S. Sy
Direction: Complete the table below. Use your own idea/s in completing this task.
You may reflect it in the real scenario today experiencing this amazing situation
by this pandemic. Turn in your output in our Google class.
Traditional VS Quality Culture
Traditional culture (Face
to Face classes)
Operating Philosophy
Objectives
Management Approach
Attitude
towards
customers
(teacherstudent attitude)
Problem Solving Approach
Supplier
relationship
(teacher-student
relationship)
Performance
improvement approach (
students output)
JRMSUV- College of Business and Accountancy
Quality culture
(modular/online classes)
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