Lecture 06
TQM
Accounting
• We depend on engineering to use general
customer requirements in developing
technical
• specifications, identifying specific parts and
materials
• needed, and identifying equipment that
should be used.
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Purchasing
• Purchasing is another important part of the TQM
process.
• Whereas marketing is busy identifying what the
customers want and engineering is busy translating
that information into technical specifications,
purchasing is responsible for acquiring the materials
needed to make the product.
• Purchasing must locate sources of supply, ensure that
the parts and materials needed are of sufficiently high
quality, and negotiate a purchase price that meets the
company’s budget as identified by finance.
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Human resources
• Human resources is critical to the effort to hire
employees with the skills necessary to work in a
TQM environment.
• That environment includes a high degree of
teamwork, cooperation, dedication, and
customer commitment.
• Human resources is also faced with challenges
relating to reward and incentive systems.
Rewards and incentives are different in TQM from
those found in traditional environments that
focus on rewarding individuals rather than teams.
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Information systems
• Information systems (IS) is highly important in
TQM because of the increased need for
information accessible to teams throughout the
organization.
• IS should work closely with a company’s TQM
development program in order to understand
exactly the type of information system best
suited for the firm, including the form of the data,
the summary statistics available, and the
frequency of updating.
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INSIDE OM
• Implementing total quality management requires broad and
sweeping changes throughout a company.
• It also affects all other decisions within operations management.
• The decision to implement total quality management concepts
throughout the company is strategic in nature.
• It sets the direction for the firm and the level of commitment.
• For example, some companies may choose to directly compete on
quality, whereas others may just want to be as good as the
competition.
• It is operations strategy that then dictates how all other areas of
operations management will support this commitment.
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INSIDE OM
• The decision to implement TQM affects areas such as product
design, which needs to incorporate customer-defined quality.
• Processes are then redesigned in order to produce products with
higher quality standards.
• Job design is affected, as workers need to be trained in quality
tools and become responsible for rooting out quality problems.
• Also, supply chain management is affected as our commitment to
quality translates into partnering with suppliers.
• As you can see, virtually every aspect of the operations function
must change to support the commitment toward total quality
management.
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Chapter Highlights
• 1)Total quality management (TQM) is different
from the old concept of quality because its
focus is on serving customers, identifying the
causes of quality problems, and building
quality into the production process.
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Chapter Highlights
• 2)There are four categories of quality costs.
The first two are prevention and appraisal
costs, which are incurred by a company in
attempting to improve quality.
• The last two costs are internal and external
failure costs, which are the costs of quality
failures that the company wishes to prevent.
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Chapter Highlights
• 3)The seven most notable individuals who
shaped today’s concept of quality are:Walter
A. Shewhart, W. Edwards Deming, Joseph M.
Juran, Armand V. Feigenbaum, Philip B.
Crosby, Kaoru Ishikawa, and Genichi Taguchi.
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Chapter Highlights
• 4) Seven features of TQM combine to create
the TQM philosophy: customer focus,
continuous improvement, employee
empowerment, use of quality tools, product
design, process management, and managing
supplier quality.
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Chapter Highlights
• 5) Quality function deployment (QFD) is a tool
used to translate customer needs into specific
engineering requirements.
• Seven problem-solving tools are used in
managing quality.
• Often called the seven tools of quality
control, they are cause-and-effect diagrams,
flowcharts, checklists, scatter diagrams, Pareto
analysis, control charts, and histograms.
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Chapter Highlights
• 6) Reliability is the probability that the
product will function as expected. The
reliability of a product is computed as the
product of the reliabilities of the individual
components.
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Chapter Highlights
• 7) The Malcolm Baldrige Award is given to companies
to recognize excellence in quality management.
• Companies are evaluated in seven areas, including
quality leadership and performance results.
• These criteria have become a standard for many
companies that seek to improve quality.
• ISO 9000 is a certification based on a set of quality
standards established by the International Organization
for Standardization.
• Its goal is to ensure that quality is built into production
processes.
• ISO 9000 focuses mainly on quality of conformance.
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Basics
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Basics
‘Quality is about passion and pride.’
Tom Peters and Nancy Austin, A Passion for
Excellence
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Basics
• Quality is at the top of most agendas and improving quality is
probably the most important task facing any institution.
• However, despite its importance, many people find quality an
enigmatic concept.
• It is perplexing to define and often difficult to measure.
• One person’s idea of quality often conflicts with another and,
as we are all too aware, no two experts ever come to the
same conclusion when discussing what makes an excellent
school, college or university.
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The message of quality
• We all know quality when we experience it, but describing
and explaining it is a more difficult task.
• In our everyday life we usually take quality for granted,
especially when it is regularly provided.
• Yet we are all too acutely aware when it is lacking.
• We often only recognize the importance of quality when we
experience the frustration and time wasting associated with
its absence.
• Of one thing we can be certain: quality is what makes the
difference between things being excellent or run-of-the-mill.
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The message of quality
• Increasingly, quality makes the difference between success
and failure.
• The best organizations, whether public or private, understand
quality and know its secret.
• Seeking the source of quality is an important quest.
• Education is also recognizing the need to pursue it, and to
deliver it to pupils and students.
• There are plenty of candidates for the source of quality in
education.
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The message of quality
Amongst these are:
– outstanding teachers;
– high moral values;
– excellent examination results;
– the support of parents, business and the local community;
– plentiful resources;
– the application of the latest technology;
– strong and purposeful leadership;
– the care and concern for pupils and students;
– a well-balanced and challenging curriculum.
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The message of quality
• It is instructive to look to the business world for an insight into
quality.
• IBM’s definition puts it simply: ‘quality equals customer
satisfaction’
• (Unterberger, 1991).
• Alex Trotman, an Executive Vice-President of the Ford Motor
Company, has delivered the same message: ‘we know these
days, in these tough times, that we have to satisfy our
customers completely’.
• It is not quite as simple as ‘listen and respond to your
customers and all the other good things will follow’, but it is a
serious start.
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The message of quality
• Organizations who take quality seriously know that much of
the secret of quality stems from listening to and responding
sympathetically to the needs and wants of their customers
and clients.
• Quality involves doing many other things well, but unless an
institution puts its customers first the preconditions for
developing quality will not exist.
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Why quality?
• Quality is an idea whose time has come. It is on everyone’s
lips.
• In the UK we have the Citizen’s Charter, the Business
Excellence Model and the Investors in People standard, while
the United States has the Malcolm Baldrige Award and the
Japanese have the Deming Prize.
• The European Foundation for Quality Management has
developed the successful European Quality Award, while
internationally there is the important International Standard
ISO9000 series.
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Why quality?
• These are just some of the more influential quality awards
and standards that have been introduced in recent years to
promote quality and excellence in a wide range of industries
and services.
• This new consciousness of quality has now reached
education; educational institutions are being required to
develop their own approaches to quality, and need to
demonstrate publicly that they too can deliver a consistent
quality service.
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Why quality?
• No longer are quality, quality assurance, total quality and
TQM new initiatives or another set of fads designed to add to
the workload of already over-worked teachers and underfunded institutions.
• While initiative fatigue has been a symptom of a hard-pressed
education system for the past decade, quality improvement
should not be seen in this light, but rather as a set of tools to
help teachers and educational managers.
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Why quality?
• Total Quality Management is both a philosophy and a
methodology.
• It can assist institutions to manage change and to set their
own agendas for dealing with the plethora of new external
pressures.
• Considerable claims are made for TQM.
• There are those in education who believe that TQM properly
applied to it can complete a similar transformation.
• However, TQM does not and will not bring results overnight;
neither is it a panacea for all the problems that beset
education.
• Rather it is an important set of tools that can be employed in
the management of educational institutions.
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The four quality imperatives
• When I first started researching quality I asked the question
‘why should an educational establishment want to be involved
in quality assurance activities?’
• My research has led me to the conclusion that educational
institutions are pursuing quality improvement for a number of
important reasons.
• Some are linked with professional responsibility, while others
result from the competition inherent in educational
marketplaces or from the need to demonstrate accountability.
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The four quality imperatives
• I have called the results of this research the four quality
imperatives.
• In the commercial world it is the survival imperative that
often drives quality improvement, but the complexity of
education and the importance of values in education makes
the motives for taking a quality stance more complicated and
diverse.
• The four imperatives reflect the complex environment in
which educational institutions operate.
• They are the drivers and motivating forces that challenge
anyinstitution to take a proactive stance on quality.
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The moral imperative
• The customers and clients of the education service (students,
parents and the community) deserve the best possible quality
of education.
• This is the moral high ground in education and one of the few
areas of educational discussion where there is little dissent.
• It is the duty of educational professionals and administrators
to have an overriding concern to provide the very best
possible educational opportunities.
• As John West-Burnham has put it, ‘it is difficult to
conceptualize a situation where anything less than total
quality is perceived as being appropriate or acceptable for the
education of children’.
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The professional imperative
• Closely linked to the moral imperative is the professional
imperative.
• Professionalism implies a commitment to the needs of
students and an obligation to meet their needs by employing
the most appropriate pedagogic practices.
• Educators have a professional duty to improve the quality of
education and this, of course, places a considerable burden
on teachers and administrators to ensure that both classroom
practice and the management of the institution are operating
to the highest possible standards.
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The competitive imperative
• Competition is a reality in the world of education.
• Falling enrolments can lead to staff redundancies and
ultimately the viability of the institution can be under threat.
• Educationalists can meet the challenge of competition by
working to improve the quality of their service and of their
curriculum delivery mechanisms.
• The importance of TQM to survival is that it is a customerdriven process, focusing on the needs of clients and providing
mechanisms to respond to their needs and wants.
• Competition requires strategies that clearly differentiate
institutions from their competitors.
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The competitive imperative
• Quality may sometimes be the only differentiating erentiating
factor for an institution.
• Focusing on the needs of the customer, which is at the heart
of quality, is one of the most effective means of facing the
competition and surviving.
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