INSTRUCTIONAL MATERIALS FOR

BUMA 20013 OPERATIONS MANAGEMENT (TQM)

MODULE 1 – TQM’s STRUCTURED APPROACH TO OVERALL ORGANIZATIONAL MANAGEMENT

Overview:
Total Quality Management (TQM) is the non-stop process of detecting and reducing manufacturing
errors, supply-chain management streamlining, improving customer satisfaction, and ensuring that
employees are up to speed with training.

Module Objectives:
After successfully completing the module, student should be able to:
1. Gain an insight on Total Quality Management’s origin.
2. Define what quality in work is.

Course Materials:
1. The USA leadership in technology and industry after World War II (SMPP Quality Circle
Leader’s Guide)
2. American management formulas and techniques made its way into Japanese business
2.1. The Japanese considered the management skills of US business as mainly responsible for their
technical and manufacturing advances.
2.2. General Douglas MacArthur made an effort to develop Japanese business to a level sufficient to
trade on international market.

Activities/Assessment
1. Write a reaction paper on
1.1. The origin and growth of Total Quality Management
1.2. An essay about your own definition of quality

MODULE 2 – CUSTOMER-FOCUSED PROCESS AIMED AT CONTINUAL QUALITY IMPROVEMENT

Overview:
TQM’s process aims to improve the quality of an organization's outputs, including goods and services,
through continual improvement of internal practices.

Module Objectives:
After successfully completing the module, student should be able to:
1. Recognize Dr. William Deming’s philosophy on quality work and his significant role
2. Know Joseph Juran’s statement on quality
3. Understand Philip Crosby’s “Absolutes of Quality Management”

Course Materials:
1. Dr. William Edwards Deming (SMPP Quality Circle Leader’s Guide)
1.1. Japanese Engineering Standards (JES)
1.2. Union of Japanese Scientists and Engineers (JUSE)
2. Dr. Joseph Juran’s trilogy
2.1. Quality planning
2.2. Quality improvement
2.3. Quality control
3. Philip Crosby
3.1. Quality is conformance to requirements
3.2. Quality is prevention
3.3. Quality performance standard is zero defect
3.4. The measurement of quality is the price of non-conformance

Activities/Assessment
1. Group topic discussion on
1.1. Obstacles and benefits of TQM
1.2. Quality Statements: Mission, Vision, Quality Policy
2. Group topic narrative report
3. Individual reaction paper

MODULE 3 – TOTAL PERSONNEL ACCOUNTABILITY FOR QUALITY PERFORMANCE

Overview:
TQM aims to hold all parties involved in the production process accountable for the overall quality of the
final product or service.
Module Objectives:
After successfully completing the module, student should be able to:
1. Understand that the role of the TQM approach can reflect both internal priorities and any industry
standards currently in place
2. Know that TQM strives to ensure that all personnel work toward the common goals of improving
product or service quality, as well as improving the procedures that are in place for production.

Course Materials:
1. Leadership
1.1. Definition, characteristics, concepts
1.2. 7 Habits of Highly Effective People
2. Quality planning
2.1. Strategic Planning’s Goals and Objectives
2.2. 7 Steps to Planning
3. Customer focus
3.1. Customer satisfaction
3.2. Who is the customer?
3.3. Customer perception of quality
3.4. Customer feedback
3.5. Early customer involvement
3.6. Mass customization
4. Employee motivation
4.1. Proactive and reactive behavior
4.2. Maslow’s Hierarchy of Needs
4.3. Common myths about employee motivation
5. Employee focus and involvement
5.1. Motivation
5.2. Empowerment
6. Teams
6.1. Teamwork
6.2. Types, characteristics of successful teams
6.3. Member roles
6.4. Obstacles to team progress
7. Recognition and reward, performance appraisal, continuous process improvement (Input-
Process-Output Model)
8. Continual process improvement
8.1. Quality circles
8.2. Juran trilogy
8.3. PDSA (Plan-Do-Study-Act) cycle
9. 5S, Kaizen-Reengineering, supplier-partnership
10. Supplier-management
10.1. Principles of customer-supplier relationship
10.2. Partnering
10.3. Sourcing
11. Supplier selection, rating, relationship development
12. Seven tools of quality
12.1. Pareto diagram
12.2. Process flow diagram
12.3. Cause and effect (Ishikawa) diagram
12.4. Check sheet
12.5. Histogram
12.6. Control chart
12.7. Scatter diagram
13. New seven management tools
13.1. Affinity diagram (KJ method)
13.2. Interrelationship diagram
13.3. Tree diagram
13.4. Matrix diagram or quality table
13.5. Prioritization matrix
13.6. Process decision program chart
13.7. Activity network diagram
14. Quality Circles Problem Solving Process (With Theme Setting)
14.1. Problem identification – Brainstorming, classification, data gathering
14.2. Problem prioritization – Matrix, Pareto analysis
14.3. Problem statement
14.4. Objective setting – Quantifiable, Understandable, Attainable, Relevant, Timebound
14.5. Problem analysis
14.5.1. Cause and effect analysis (Ishikawa diagram)
14.5.2. Validation of causes (Confirm probable causes)
14.5.3. Classification of causes (Identify most probable cause)
14.6. Solution formulation
 14.6.1. Cause and effect opportunity analysis
14.6.2. Validation of possible solutions (Confirm probable solutions)
14.6.3. Classification of solutions ( Identify most probable solution, cost / benefit analysis)
14.7. Action planning – Action plans, potential problem analysis, future plans, written report
14.8. Management presentation – Presentation to adviser and facilitator, Presentation to
steering committee, recognition
14.9. Trial implementation – Set duration (Significant level of results)
14.10. Evaluation (Based on objective set)
14.11. Standardization
14.11.1. Announce project success
14.11.2. Recognition
14.11.3. Employee 201 file

Activities / Assessment
1. Group topic discussion on
1.1. Leadership
1.2. Quality planning
1.3. Customer focus
1.4. Employee motivation
1.5. Employee focus and involvement
1.6. Teams
1.7. Recognition and reward, performance appraisal, continuous process improvement (Input-
Process-Output Model)
1.8. Continual process improvement
1.9. 5S, Kaizen-reengineering, supplier-partnership
1.10. Supplier-management
1.11. Supplier selection
1.12. Seven tools of quality
1.13. New seven management tools
2. Group topic narrative report
3. Individual reaction paper
4. Group process improvement proposal PPT

Prepared by:

Dr. Angelito R. Calingo