7 | Advance Industrial Arts

UNIT 7: TOTAL QUALITY MANAGEMENT/LEAN

MANAGEMENT
1.0 Intended Learning Outcomes
a) Define quality management system?
b) Identify the dimensions of quality
c) Apply the principle of TQM and Lean Management
d) Select value added process.
1.1. Introduction
Quality and strategy are two most important components in an organization. Managing
the quality advocates changes on how to minimize the cost of production using
various strategies. Likewise in education, management quality education is bigger
task but with strategies in could be possible through the coordination between the
management and teachers. Quality also helps the increase of sales and reduce costs
because if you mitigate or prevent errors of the product and the customer is satisfied
with the product then, the result would be high profit and benefits. It is also a
challenge in building quality in an organization because there will be changes in the
culture and practices of the process and expect resistance from the shop floor.
Quality assurance approach emphasizes on finding and correcting defects before
reaching the market while strategic approach is proactive which focuses on
preventing mistakes from occurring and has greater emphasis on customer
satisfaction.
1.2 Topics/Discussion (with Assessment/Activities)
What is quality?
“It is the totality of features and characteristics of a product or service that bears on its
ability to satisfy stated or implied need” (American Society for Quality, 2009). There are different
view in defining quality when the user defines quality it refers to better performance and
more features. Manufacturing based defines quality as conformance to standards, making it
right the first time. Product-based refers to specific and measurable attributes of the product.

What are implications of Quality?

 Maintaining good reputation – Customer always look at you based on the
product you produce. Good employment practice also precedes company’s
reputation including supplier relations. (Kumar,2009)
 Product Liability – this refers in reducing the risk of the goods and services.
Quality products that passes to certain level of inspection eliminates the risk of
endangering the user because as always the liability is rest upon the company
or those who produce the goods and services (Kumar,2009)
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 Global implications – Good quality products can compete with products from
other countries. In the Philippines, company should be subjected to ISO
standards to measure the level of quality of products and services. Likewise,
exporting companies cannot send their product if their company is not ISO
certified. (Kumar,2009)
DIMENSIONS OF QUALITY
 Performance – this is the main characteristics of the product like everything
works in the automotive engine or computer speed to process the data.
 Aesthetics – refers to the appearance, feel, smell or taste of the product. Like
for example the ergonomic design of chairs, etc.
 Conformance – this refers how the product or services suits to customer
needs.
 Reliability – this refers to the consistency of performance for example the
machine maintain the accuracy after making 1000 parts.
 Durability – this refers the useful life of products or services. E.g. machine
runs at 1000 hrs without breaking or maintenance.
 Perceived quality – it is the indirect evaluation of quality for example,
production reputation when you buy a Samsung brand, the customer always
perceived it as good quality product.
 Serviceability – this is services offer after it has sold to the customer or
handling of complaints or request from the customer. (Kumar,2009)

What are dimensions of service quality?

 Tangibles – this refers to the ambiance of the working area with emphasis on
cleanliness of the area and the personnel.
 Convenience – this refers to accessibility to the services of the facility. Each section is
design for the customer to feel comfortable.
 Reliability – the level of services is given to each customer and some concerns of the
customer are also provided.
 Responsiveness – the capability of the service personnel to address customer needs.
For example, the teachers were able to provide learning materials for their activity.
 Time – this refers how much time customer have to wait before they get what they
ordered.
 Assurance – giving the customer guarantee that the services will be given.
 Courtesy – maintaining politeness in dealing with customer such as greeting them
every time they enter your facility or office.
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DETERMINANTS OF QUALITY
Quality is determined in terms of design, ease of use, and conforms to design and service.
 Design – this refers to the physical features of the product such as the shape,
ergonomics, surface texture etc.
 Ease of use – this refers how fast the user learn about the product. The learning
curve must be less, instruction is provided including the safety feature.
 Service – product should have after sales services components to assure that is
protected with warranty services.
 Conforms to designs - the product must function as to the intended purpose.
 Quality of design – the intention of designers to include or exclude feature of
product or services.
 Quality of conformance- the degree to which goods and services conform to the
intent of the designer.
What is the responsibility for quality?
 Top Management - It is the goal of top management to product quality products and
services. Top management decision are crucial in making plans as to how to improve
the product and services because this entails costs in the production.
 Design – it must exceed customer specifications or the product and services available
to the customers are within their expectations.
 Procurement – The efficiency of procurement is very important to achieve quality
products of goods and services. Delays in the procurement will have greater impact
in the production or implementation of services.
 Production/Operations – In the production or operations, quality job is required, each
process must have quality inspection components to ensure efficiency in the
production and to prevent rework.
 Quality assurance – this is to ensure that the products and service are evaluated or
measure as to customer requirements.
 Marketing and Sales – In marketing, quality of promotion is crucial as this will affect
their sales of the product or services.
 Customer Service – Assisting the customer regarding his/her needs is a good quality
outlook. Maintaining courtesy towards customer and helping the customer to tend to
his/her needs.
What are the costs of quality?
There different types of costs of quality to give assurances to the products and
services.
 Failure costs – costs incurred by defective parts/products and faulty services.
The is generated when then part is return to the factor for repair under
warranty periods.
 Internal failure costs – cost incurred to fix problems that are detected before
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the product/service is delivered to the customer.

 External failure costs – costs incurred for fix problems that are detected after
the product/service is delivered to the customer.
 Appraisal costs – this is the costs of activities designed to ensure quality and
uncover defects.
 Prevention costs – companies have invested more on quality equipment,
training of personnel, process improvement to prevent defects in the
production of goods and services.
What are the different quality certifications?
There are different quality certification which is given to companies or organizations: these
are
 ISO 9000 is a quality management systems prescribed by international standards on
quality management and quality assurance, critical to international business. Schools
like university can now apply for this QMS to determine the efficiency of the process
regarding the quality of education.
 ISO 14000 is a set of international standards for assessing a company’s environmental
performance such as management systems, operations, environmental systems.

WHAT IS TQM?
TQM is philosophy that involves everyone in an organization in a continual effort to
improve quality and achieve customer satisfaction.

ELEMENTS OF TQM
 Continual Improvement – quality has no end, it seeks to make never-ending
improvement to the process of converting inputs into outputs. Kaizen is the Japanese
work for continuous improvement.
 Competitive benchmarking – this refers to the best practices on processes, strategies
and methods or techniques in achieving organizational goals.
 Employee empowerment – Checking the quality of work is the responsibility of each
employee. Every stage of the process the employee checks and inspects the quality.
 Team approach – Every process is interrelated to each other so everyone must work
together to prevent errors in the production.
 Decision based on facts – The decision for continuous improvement is scientific which
means statistical tools are used to measure the productivity of each process.
 Knowledge of Tools – There are different types of tools used to measure the efficiency
and productivity of the process. It is used to help manager decides on how to achieve
organizational goals.
 Supplier quality – In TQM, supplier play a bigger role in achieving quality. Some
companies conduct audit to the suppliers in terms quality of the materials.
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 Quality at the source – it the philosophy on making each worker responsible for the
quality of his/her work.
 Suppliers – responsible for the delivery of quality materials needed for the production.

TQM MODELS
Crosby’s model - focus not only on the quality of the product but on the
quality of the production system you use to produce it. Consider every component
of the system and find the root causes of the failures and eliminate them at the
source. The system will then produce a quality with “zero defects”.
Deming’s Model- Mass inspection on every item may take long time and may
be inherently unreliable since there is no time to inspect each item too closely. Quality
control inspectors must be employed and paid even though they do not add value to
the product. The concept of zero defects is a misguided one where competition in
manufacturing is concerned. The standards for zero defects is not absolute. When the
competitors produce a better product, the original standards for zero defects will
become obsolete. Hence, the emphasis must be on continually improving the process
of production to achieve even higher quality standards.

HOW TO APPLY TQM IN SCHOOLS

TQM philosophy can be applied in schools because students were given
instruction by the teachers and take examinations as part of quality control or
measuring student competencies and those who fail in the examination will either be
retake the course or fails the subject.

Teachers

Exams

Primary Further
School Teaching
Leavers P Education
Training
Re -sit Workforce
Fail

Fig. 1 TQM in School

Students or pupils (input) is considered internal customers of the process
which receives instruction from the teachers (production stage). To check the quality,
students will take examinations to determine the quality of instruction. If the students
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passed the test, the will continue for another instruction and for those who failed they
will reset the instruction and take another examination before they will go to another
level of training.
The drawbacks allowing students who fail their examinations to enter the
workforce is a waste of time and money already invested in their education however,
to compel students to re-sit their examination will take even more time and money.
(Rotham, 2004)

TQM in education has attracted different countries which attempts to improve

the quality standards through development of strict accountability systems,
competency-based education and testing and mandated national curricular content
and goals.Although, different interpretation of TQM in industry will result
contrasting outcomes when it is applied in schools. (Rotham, 2004)

In Crosby’s model, TQM in education will focus on the quality of the teaching
system and consider every component of the system and find causes for examination
failures and eliminate them at the source. The system will produce students who pass
the examination automatically. A teaching and learning process which focuses
exclusively on achieving good examination results. (Rotham, 2004)

On Deming’s interpretation of TQM in education, examining every student on

everything they learned takes up considerable time, thus reducing the number of class
periods available for teaching. The examination process may be unreliable since there
is not time to examine each student individually. For school to compete successfully
in the education market, there must be continual improvement in the curriculum itself
in order to better satisfy the educational needs of the students. Continually improving
the quality of instruction in order to encourage students to become critical and
creative thinkers in a fast-changing technological world. (Rotham, 2004)

LEAN MANAGEMENT SYSTEM

Here in this topic, we are going to learn how lean management is significant in an
organization.
What is Lean?
“Precisely specify value by specific product, identify the value stream for each
product, make value flow without interruptions, let customer pull value from the
producer and pursue perfection.” (Womack and Jones, 1996, p10). It also the
management practices which seeks to improve the efficiency and effectiveness by
eliminating the waste. The purpose of lean is to reduce and eliminate non-value
adding activities and waste.
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How Lean started?

Lean started in1940’s when Toyota corporation aimed to reduce the processes
that has not value in the production. As a result, there is a significant improvement in
productivity and efficiency. It is called TPS or Toyota Production system a continuous
improvement production system where customers ordered the vehicle and deliver it
in the most efficiency way. It comprises of two concepts: “jikoda” (automation with
human touch) this means if there are problems detected in the production, the
equipment automatically stops and then correct the problems at the shop floor. In
doing so, defective products will automatically detected. Another concept is JIT(Just-
in Time) which means each process produces only what is needed for the next process
in a continuous flow. With these philosophy, TPS can efficiency produce vehicles with
productivity and efficiency. (Brooks,2003)

Fig. 2 The Lean Pillars

There are two pillars in Lean or The Toyota Way; the continuous improvement and
respect for people and comprising these pillars are Genchi Gebutsu (go and ses), Kaizen
(improvement) challenge, teamwork and respect.
 Genchi Gebutsu (go and see) – this principle suggests to understand truly what
happing in the shop floor you need to observe to find problem and create solutions.
 Kaizen – It is the concept of continuous improvement of all the process with
involvement from the CEO down to the employees or workers. It aims eliminate the
waste and work redundancies.
 Challenges – these are long-term vision which the company would be facing in the
future and identifying such challenges will give direction to the organization
 Teamwork- each part of the process has significant role to play in turning inputs into
outputs. With team at play, work will be easy and efficient.
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 Respect – build mutual trust between workers, understand each other and encourage
to motivate workers towards organizational objectives. (Brooks,2003)

5 BASIC PRINCIPLESOF LEAN PRINCIPLES

Fig.3 Lean Principles

 Identify value – This is to add value to the customer needs. Company strive
to offer product and services which the customer ready to pay. The value is
rests in the problem you want to solve for the customer. Activity which does
not bring value to the process is considered waste.
 Value streaming mapping – it is the process of mapping the work flow in
producing goods and services and evaluate which activities that has value-
added.
 Create continuous flow – design the work flow based on the value stream map
of activities in order to have a smooth team’s work flow. A cross-sectional team
work is used in developing products and services. To detect problem with
work flow, you need to break the up the work into smaller activity.
 Create a pull system- With the completion of work flow, you can deliver work
or task efficiently and to maintain the stability of the work flow, a pull system
must be created to optimize your resources in the delivery of products and
services. For example, Ordering pizza, the bakers only makes what you
ordered rather making more pizza with no demand from the customer in order
to prevent waste.
 Continuous improvement – Although there a still process that you should look
into which you want to improve. The system is not static or isolated, there is
always problems you will encounter along the way. So it is important that
every must involve in the continuous process such as conducting meeting what
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has to be done, and identify the possible events that may happen. Levinson,
2016)

TYPES OF WASTE (MUDA)

 Defects – All processing required to correct a mistake. For example, in correct
mission information in the form or wrong contact information.
 Over-production – producing more than is needed or required at a given time. For
example collecting processing more information than needed. Purchase more
equipment than needed.
 Inventory - Excess that is not directly required for current customer needs. For
example unneeded files, extra supplies, unnecessary copies, excessive unread
emails.
 Motion – unnecessary actions in completing the task. For examples updating records
to different systems, searching for misplaced files or switching screens or
software/systems.
 Transportation – moving people or things further or more often than necessary. Like
for instance, Mailing documents, moving equipment or unnecessary travel.
 Over-processing – Doing more than is needed such as multiple approval signatories,
entering data into multiple systems and redundancy in the process.
 Waiting – delay due to upstream activity not delivering on time, e.g. waiting for
approval, waiting for feedback and waiting for supplies.
 Human Talent – failure to engage workforce solving problems and improving
processes such as insufficient training, high absenteeism and turnover, missing
improvement by failing to listen to employees. Levinson, 2016)

IDENTIFYING WASTE
Valued- Added Activities
 These activities that transform or shape the materials or information. The
clients wants it and doing the right the first time.

Non-Value Added – Needed Activities

 Activities causing no value to be created but which cannot be eliminated
based on current state of technology or thinking.
 Required (regulatory, customer mandate, legal)
 Necessary due to non-robustness of process, currently required, current risk
tolerance.
Non-Value Added Activities
 Activities that consume resources but create no value in the eyes of the client.
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BENEFITS OF LEAN MANAGEMENT

Lean management is applied to every organizations from manufacturing to
service sector industries. So, what are the benefits of the lean management in the
organization?
 Focus- Focus on reducing the waste activities and concentrate to those
activities that bring value.
 Improving productivity and efficiency- Of course, if all activities were
evaluated and the focus is on activities that have higher value, then
productivity and efficiency will be achieve.
 Smart process- establishing a pull system is a good decision to make because
you only make the work based on the customer demand.
 Better use of resources – when the production is based on customer demand,
then you will be able to use as many resources as needed.(Levinson, 2016)

EVALUATION EXCERCISES

Instruction: Please answer the questions as comprehensively as possible.

1. How do you define quality?

2. Along the learners perspective, what dimensions of quality you want to achieve?
3. How do you apply TQM and Lean management principle in the school? And
what changes you want to implement?
4. Cite an example of a process flow in your school and identify which activities are
value-added and non-value added.
5. What do you think are the limitations of Lean Management Systems?
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1.3 References
Levinson, William A. (2016). Lean Management System LMS:2012: A Framework for
Continual Lean Improvement. CRC Press. p. 11. ISBN 9781466505384. Retrieved 5 May 2019.
James P Womack, Daniel T Jones (2003) , Lean Thinking, 2nd Edition, ISBN 978-0-7432-4927-
0,
Rizzardo, R. Brooks, (2003)Understanding Lean Manufacturing, Maryland Technology
Enterprise Institute,
Kumar, S., Suresh, S., (2009) Operations Management, New Age International
Publisher, ISBN (13) : 978-81-224-2883-4
Rowbotham, F., Galloway, L. Azhhashemi, M. (2007) Operations Management
Context. Elseview, SBN–13: 978-0-7506-8198-8
Gupta, S., StarrM.,(2014) Production and Operations Management Systems, CRC Press
Kumar, S., Suresh, S., (2008) Production and Operations Management with Skill
Development, Caselets and Cases, New Age International Publisher, ISBN : 978-81-224-
2425-6

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