Proceedings of the American Society for Engineering Management 2018 International Annual Conference

E-H. Ng, B. Nepal, E. Schott, and H. Keathley eds.

TOTAL QUALITY MANAGEMENT & APPLE SUCCESS

Mostafa F. Fawzy, Ph.D.
Northern Illinoies University
[email protected]

Eric W. Olson
Iowa State University
[email protected]
____________________________________________________________________________________________

Abstract
This project investigates the relation between Apple’s success and Total Quality Management (TQM) tools’
implementation in an organization. Today, TQM has become one of the most important principles in management.
Any successful organization’s management team must work to continuously improve the quality of its products,
services, and/or work environments in order to be competitive; this can easily applied via a TQM principles & tools.
Apple is one of the world’s most successful companies. Although it has not implemented TQM principles &
tools verbatim as in TQM text books, it has been successful in part due to implementing TQM principles from the
start. This project focuses on presenting this company’s success and quality improvements in different areas, and their
relation to each other from the TQM perspective. It discusses the evaluation of Dr. Deming’s five steps and fourteen
points about Total Quality in Apple. Also, it shows how Apple serves as an example in today's technology industry
by focusing on quality first. Finally, this project discusses the legacy Steven Jobs’ focus of placing customer
experience and quality first.

Keywords
Total Quality Management, Operations and Supply Chain Management, Apple Inc.

Introduction
While Apple may not have adopted all of the practices outlined in Deming's five steps and his fourteen points, there
are many parallels in their approach to business and product design. From the moment a customer enters the retail
realm of Apple they are immersed in a “customer first” experience. The products created and services provided by
Apple at their retail outlets are arguably the standard when it comes to the modern day technological industry. The
continual improvement on their designs is born of a tireless effort to refine the prior generation and continued
improvement through cutting edge research and development. The research and design teams at Apple are committed
to providing the user with the best possible product experience. In our society and modern age, it is rare not to find an
Apple designed product within our offices, class rooms, and homes. Apple has developed success through a
perspective focused on Total Quality Management (TQM), whether they realized it or not. The goal of this project is
to invistgate the application of TQM in Apple’s management system. It focuses on highliting the success reasons in
the management methodology adopted by this company.

Literature Review
This project investigates a successful implementation of TQM. By looking for literature about TQM implementation
in Apple Inc., the researchers did not find any academic puplication supporting the direct implementation. However,
they found some online articles and forums that show Apple to be a good example of a successful organization that
applied strategies similar to those of TQM. Thus, this study focuses on investigating this point by comparing Apple’s
strategies with those of TQM.

Total Quality Management (TQM)

Quality was defined as a dynamic state associated with products, services, people, processes and environments that
meet or exceed current expectations (Goetsch and Davis 1995). Thus, TQM is an approach to doing business that
attempts to maximize the competitiveness of an organization through continual improvement in the quality of its
products, services, people, processes and environments (Goetsch and Davis 1995). TQM has nine key elements shown

Copyright, American Society for Engineering Management, 2018

 M. F. Fawzy and E. W. Olson.

in Exhibit 1 (Goetsch and Davis, 1995). The TQM movement was started in the early 1900s by Fredrick Taylor, the
father of scientific management. After that, this movement evolved by some quality scholars, such as Walter A.
Shewhart, W. Edwards Deming, Joseph M. Juran, and Philip Crosby, and some organizations such as Toyota and
General Electric (Goetsch and Davis 1995).

Exhibit 1. The nine key elements for TQM.

A Brief History of Apple

Apple’s mission statement, “Apple designs Macs, the best personal computers in the world, along with OS X, iLife,
iWork and professional software. Apple leads the digital music revolution with its iPods and iTunes online store.
Apple has reinvented the mobile phone with its revolutionary iPhone and App Store, and is defining the future of
mobile media and computing devices with iPad.” (Apple investor website, 2012). More succinctly, they continue to
improve upon the user’s experience when it comes to personal technology. Apple currently has over 60,000 employees
across 12 countries in over 357 stores and offices. The world’s most valuable company bases its operations in
Cupertino, California (CNN website, 2012), but had much more humble beginnings, starting in the garage of its co-
founders.
Beginning their work in 1976, Steve Wozniak and Steve Jobs worked together to create the first ever Apple
computer, the Apple I. This computer, born of nothing more than a wooden case and silicone transistors, would lead
to the start of a personal computing revolution. Before Apple Computer Inc. was founded in 1977, the very idea of
owning a personal computer was alien to most, if not all, of the world. During the next decade, competition between
Apple Computer Inc., and International Business Machines (IBM) would produce the modern personal computer and
many of the ancestors of products we use today.
The first Macintosh (Mac) was introduced in 1984. This computer was designed with the user as its focus,
introducing the mouse and graphical user interface to the masses. Revolutionary in its design and cost, the Mac
became synonymous with personal computing and started Apple Computer down the road to success. Throughout the
rest of the ‘80s and ‘90s, Apple continued to introduce new products such as the first portable computer (Macintosh
Portable - 1989), first handheld (Newton - 1993) and first “i” branded products (iMac - 1998, iBook - 1999).
With the start of the new millennium came the introduction of a product which would change the face of not
only the computer industry but the music, movie and entertainment industries as well. In 2001 Apple released the iPod
and forever changed the way people get and enjoy their music. With continued development and refinement of their
designs and user experiences, Apple is now “defining the future of mobile media and computing devices with the
iPad” (Apple investor website, 2012). While their product line up and history is deep, the products Apple creates are
not the only side of the story.

Methodology
This project investigates a successful implementation of TQM. The study has gone through several stages which are
explained by the following items:

2
Copyright, American Society for Engineering Management, 2018
 M. F. Fawzy and E. W. Olson.

1. Search and gather information about Apple and its implementation for TQM and Dr. Deming’s fourteen
points, five steps, and seven deadly diseases.
2. Write the findings about:
- Total Quality Management
- Apple Inc.
3. Define Dr. Deming’s fourteen points, five steps and seven deadly diseases.
4. Compare Apple's practices to those listed in Deming’s five steps and fourteen points and seven deadly
diseases.
5. Discuss how Apple serves as an example in today's technology industry, focusing on quality first.
6. Discuss about the legacy Steven Job's focus of placing customer experience quality first.
7. Write the final results and discussion.
8. Write the conclusion and recommendations.
Exhibit 2 summarize the work steps of theis study. Moreover, the following points are discussed in this project:
1. Evaluate how Apple implemented a TQM approach from the very beginning of the formation of the company.
2. Compare Apple's practices to those listed in Deming’s five steps and fourteen points about total quality.
3. Discuss how Apple serves as an example in today's technology industry, focusing on quality first.
4. Discuss about the legacy Steven Job's focus of placing customer experience quality first.
Exhibit 2. The study Methodology

Search & gather info.

Write the findings about:

• Total Quality Management
Define Dr. Deming’s: • Apple Inc.

• Fourteen points
• Five steps
• Seven deadly diseases
Apple's & Deming’s points &
steps

Discuss how Apple serves as an example

in today's technology industry Discuss about the legacy
Steven Job's focus of
placing customer
experience quality first

Write the final results and discussion.

Apple’s Management Philosophy Vs. TQM

Deming’s Five Steps
Dr. Deming proposed five steps to link the organization’s processes with the customers’ need. These steps are called
Deming Cycle which shown in Exhibit 3. It was developed to connect the organization with the consumers in order
to direct all the organization’s work on customers’ satisfaction and achieve the organization’s goals (Goetsch and
Davis, 1995). Apple did not follow these five steps as it appling Dr. Deming. steps. Yet, what apple did is reflective
what is summarize by Dr. Deming in each of these five steps as clarified in this study.

3
Copyright, American Society for Engineering Management, 2018
 M. F. Fawzy and E. W. Olson.

Exhibit 3. Deming Cycle: The five steps link the production of a product with consumer needs.

Conduct
Consumer
Research

Analyze
How the Produce the
Product is Product
Received

Market the Check the

Product Product

Step 1: Conduct consumer research and use it in planning the product. Apple doesn’t conduct consumer research
in the traditional sense, such as through focus groups and surveys. This does not mean that they do not desire and or
take input from the customers who use their products. Through observations of consumer behavior and interactions
with their products at Apple stores, Jonathan Ive, Senior VP of Design has honed Apple’s products to achieve a non-
intimidating and quality design (frog design website 2012).
Step 2: Produce the Product. Apple produced its first products, personal desktop computers, by hand out of one of
its co-founders’ garages. Today, the company produces its personal computing devices by the millions in factories
throughout the world. In 2011 alone they sold over 93 million iPhones and 40 million iPads to consumers (abcnwes
website, 2012). While the technology and scale may have changed, one thing that remains is the ‘by-hand’ assembly
of its products.
Step 3: Check the product to make sure it was produced in accordance with the plan. Apple’s Infinite Loop
testing labs ensure that the company’s products are tested just as rigorously as they are produced, marketed and sold.
One example of a design flaw which was then retested and redesigned revolves around the iPhone 4’s antenna. With
signal detection and attenuation issues at the heart of the problem, Apple’s labs employed 17 million dollar anechoic
chambers to track down the problem and correct the design.
Step 4. Market the product. Apple’s marketing strategy from the beginning was nothing short of ground breaking.
The battle between big business and personal computing was staged in the 1980s and Apple launched a large attack
in the form of their Macintosh debut TV ad which ran during the 1984 Super Bowl. Heralded as one of the greatest
commercials in recent history, the ad depicted a dystopian future with black and white “big brother” (IBM) versus an
in color marathon running woman hurling a sledge hammer at the status quo (Apple). The modern day advertisement
and marketing strategy of Apple continues to innovate and showcase the capability of their products.
Step 5. Analyze how the product is received in the marketplace in terms of quality, cost, and other criteria.
When Apple produces a product with flaws, they work to correct and then perfect their products. Former CEO, Steve
Jobs, once stated “When we fall short, which we do sometimes, we try harder, we pick ourselves up and figure out
what’s wrong and we try harder.” He followed with a statement on their successes as well telling the audience, “When
we succeed, they reward us by staying users” (Business insider website, 2018). Between those two statements, it is
clear that Apple is invested in how their products are received by customers and aims to continually improve their
products lines.

Deming’s Fourteen Points

Dr. Deming’s Fourteen Points summarize his philosophy for management. Scholtes (1992) states that these fourteen
points describe the important elements for any organization to survive and be competitive in their respective arena.
Moreover, he described them as the core of Dr. Deming’s philosophy, and how they summarize his methods (Scholtes
1992). These points are shown in Exhibit 4.

4
Copyright, American Society for Engineering Management, 2018
 M. F. Fawzy and E. W. Olson.

Exhibit 4. Dr. Deming’s fourteen points which represent his management philosophy

The Fourteen Points and Apple

When comparing Apple’s approach to their product and service development with that of the ideals held within
Deming’s fourteen points, it becomes rapidly apparent that there are many similarities. By looking to the first two
points about a constancy of purpose and a new philosophy, we can see that Apple incorporates these principles in the
way they approach designing a new product. Jonathan Ive, Senior Vice President of Industrial Design at Apple, stated
in an interview with the London Evening Standard that "Most of our competitors are interested in doing something
different, or want to appear new - I think those are completely the wrong goals. A product has to be genuinely better."
(Prigg, 2012). Apple's intent is to "replace entire categories of device rather than tactically responding to an individual
problem." This manner of approach separates Apple from many of its competitors and has helped to elevate their
success. Further, as stated previously Apple strives to make its mark by improving its products continuously. Each
year new, updated, and improved versions of their product lines are produced. These iterations are not only completed
to improve the bottom line of the company, but also to correct errors in designs (such as the iPhone 4 antenna).
While Apple strives to improve their products, they also have an eye towards their people. Apple University,
an executive training program, was established under CEO Steve Jobs. The Los Angeles Times quoted an anonymous
source as saying, "Steve was looking to his legacy. The idea was to take what is unique about Apple and create forum
that can impart that DNA to future generations of Apple employees." (Guynn, 2011). This is a sterling example of
Deming's points number 6, 7, and 13 in Exhibit 4. Through instituting on the job training for its future leadership
Apple established a vigorous program of education and self-improvement amongst its employees. One of those
executives, Tim Cook, would find himself filling Steve Jobs shoes sooner than expected after the former CEO passed
away in the Fall of 2011.
Apple may not have implemented all of Dr. Deming's fourteen points; however some of the ideals within
them have been captured. Dr. Deming himself instructed that the implementation of total quality was not a cookie

5
Copyright, American Society for Engineering Management, 2018
 M. F. Fawzy and E. W. Olson.

cutter solution to be applied the same way to every organization. Each company and/or organization must apply TQM
in a manner and method appropriate to the individual traits and unique attributes that make them successful.

Seven Deadly Diseases

Dr. Deming stated seven factors that he believes constrain organizations from development. These factors are called
the Seven Deadly Diseases, which summarize Dr. Deming's views (Goetsch and Davis, 1995). Exhibit 5 shows this
Seven Deadly Diseases.

Exhibit 5. The Seven Deadly Diseases which summarizes Dr. Deming's views on factors that inhibit businesses.

Job hopping
Personal review managers Using only
systems for
visible data and
managers and
information in
management by
decision making
objectives

Emphasis on
Excessive
short term
Medical Costs
profits

Lack of
constancy of Constrained Excessive
purpose to plan
Development liability Costs
products and
services

An organization must avoid the Seven Deadly Diseases to be successful in business and provide unconstrained
development. According to Goetsch and Davis (1995), TQM can help to eliminate some of the problems associated
with the diseases but it cannot "...free corporate executives from pressure to produce short-term profits, excessive
medical costs or excessive liability costs." Apple is a company that is very confidential on its exact management
techniques. This makes it difficult to evaluate on its methods of personal review systems for managers, its exact
decision making process or if it conducts internal management solely by objectives. However, their goals in the
personal computing industry and actions demonstrate that they have been successful at avoiding many of the Seven
Deadly Diseases.
Apple's approach to its customers and business appears to have helped it to avoid falling into some of the
pitfalls described by the Seven Deadly Diseases. The former CEO, Steve Jobs provided a clear constancy of purpose
to Apple's plan, products, and services. His goal from the foundation was simple yet towering; he aimed to change the
world. The driving force behind Apple in its beginning was to revolutionize the computer industry and shape a new
technological world. Before Apple, few had attempted to bring the computer from the office and into the home. This
continuing idea that technology can and will help to improve society's lifestyle was central to success that Apple has
created.
While Goetsch describes the pressure on executives to produce short-term profits as unavoidable, Steve Jobs
had a different approach. "A lot of companies have chosen to downsize, and maybe that was the right thing for them.
We chose a different path. Our belief was that if we kept putting great products in front of customers, they would
continue to open their wallets." (inc. website, 2018). This approach of focusing on quality in their products and services
would lead to unimaginable profits and a record setting stock valuation for Apple's investors.
In terms of continuity of management and the investment Apple makes in its teams, the company boasts a
strong and dedicated collection of individuals. Amongst the team of Senior Vice Presidents working in Hardware
Design, Internet Software and Services, iOS design, Industrial Design, Worldwide Marketing, Operations and its CFO,
the shortest serving member has been with the company since 1999, the longest since 1989. This team of managers
has provided a consistent and constant focus towards creating quality, both in its products and within its offices.

6
Copyright, American Society for Engineering Management, 2018
 M. F. Fawzy and E. W. Olson.

Conclusion
In summary, it is clear that Apple did not apply Dr. Deming’s steps or any of his fourteen points in a textbook fashion;
yet, it serves as a very good example for focusing on quality first in today's technology industry. It has achieved the
same result of Dr. Deming’s expectation for any organization’s improvement process. Moreover, Steve Job's had his
own strategies for TQM and excellence which closely mirror those of Dr. Deming’s. He once stated, “Be a yardstick
of quality. Some people aren’t used to an environment where excellence is expected.” (Puckett, 2014). Even though
he may not have been speaking of “quality” in the textbook sense of TQM, the end result of those who listen to his
words is the same.
Even after Apple’s CEO Steve Jobs passed away in Fall 2011, the company continues to thrive against its
competitors. With record breaking stock valuations and new products and services such as the new iPad, iBooks
Author, the App Store and software development kits, Apple continues its legacy of continuous improvement. They
have changed the way companies and individuals conduct business through an approach focused on quality first.

References
Abcnwes website (2012), Nightline Apple Documentary. Retrieved Feb. 12, 2012 from http://abcnews
.go.com/watch/nightline/SH5584743/VD55173552/nightline-221-apples-chinese-factories-exclusive
Apple investor website (2012). Retrieved Feb. 12, 2012 from http://investor.apple.com/ faq.cfm?FaqSetID=6
Apple website (2012). Retrieved Feb. 12, 2012 from http://www.apple.com/retail/storelist/
Business insider website (2018), Steve Jobs: Sorry About "Antennagate," Here's A Free iPhone Case. Retrieved July
30, 2018 from https://www.businessinsider.com/live-apple-iphone-4-antennagate-press-conference-2010-7
Brownlee J. (2010). Steve Jobs quote from Keynote. CULTOMEDIA CORP. Retrieved March 4, 2012 from
http://www.cultofmac.com/51305/steve-jobs-we-love-our-users-but-there-is-no-antennagate/
CNN website (2012). Retrieved Feb. 12, 2012 from http://money.cnn.com/2012/01/25/
markets/apple_stock/?hpt=hp_t2
Frog design website (2012). Retrieved Feb. 12, 2012 from http://www.disruptive-thinking.com/blog/apple-doesn’t-
do-consumer-research.html-0
Goetsch, D. and Davis, S. (1995). Implementing Total Quality. New Jersey: Prentice-Hall, Inc.
Guynn J. (2011). Steve Jobs' virtual DNA to be fostered in Apple University. Los Angeles Times. Retrieved Feb. 12,
2012 from http://articles.latimes.com/2011/oct/06/business/la-fi-apple-university-20111006
Inc. website (2018), Steve Jobs: 19 Inspiring Power Quotes for Success. Retrieved July 30, 2018 from
https://www.inc.com/peter-economy/steve-jobs-19-inspiring-power-quotes-for-success.html
Prigg M. (2012). Sir Jonathan Ive: The iMan cometh. 2012 ES London Limited. Retrieved March 19, 2012 from
http://www.thisislondon.co.uk/lifestyle/london-life/sir-jonathan-ive-the-iman-cometh-7562170.html
Puckett, R. (2014). Leadership in Educational Technology. Journal of Educational Technology, 10(4), 1-5.
Scholtes P., (1992). The Team Handbook. Madison, WI: Joiner Associates, Inc. 1-11
Securities and Exchange Commission website (2012). Retrieved Feb. 12, 2012 from http://
www.sec.gov/Archives/edgar/data/320193/000119312511282113/d220209d10k.htm

About the Author(s)

Mostafa F. Fawzy is an Instructor at School of Engineering, Northern Illinois Univirsty. He teachs both graduate
and undergraduate industrial engineering courses. Dr. Fawzy received a PhD in Industrial Engineering from Iowa
State University in 2015. Dr. Fawzy was the Head of Education Department of Middle East Learning and Cultural
Center. He is a private management development consultant. Dr. Fawzy worked in the consulting field as a
development engineer and project manager for more than five years in the Jeddah Municipality and two consulting
offices.
His research interests are in the development of decision-making support systems for complex problems.
Moreover, his research interests include lean principles applications, strategic planning, and performance
enhancement.

Eric W. Olson is a Navy Radiation Health Officer. He is a Senior Personnel Manager, Instructor and Advisor with
10 years of experience in team leadership, engineering management, and program coordination in both collegiate
and military environments. Excels in initiating team and self-directed projects using strong analytical and
organizational abilities, excellent communication skills, and integrity to develop innovative solutions. Serving as an
officer in the U.S. Navy, granted a Top Secret level security clearance, qualified as a Naval Nuclear Engineer,
Radiation Health Officer, and Adjunct Assistant Professor at Iowa State University.

7
Copyright, American Society for Engineering Management, 2018