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Operations Mgt, TQM - LECTURE NOTES AND

EXPLANATION
Operations Management and TQM (Silliman University)

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Operations
Management
(TQM)

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Operations
Management
(TQM) Course Description

-This course provides an understanding of

some of the basic aspects of Total Quality
Management, quality control and
improvement systems.

-The course includes study of topics

related to quality management
approaches, design and implementation of
quality-related procedures, and related
technologies.

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Operations
Management
(TQM) Objectives

The objectives of this course is to introduce and

understand the basic concepts of
Production/Operations Management; to know its
importance in the success of the business; generate
knowledge and skills (of students) to use models and
quality management methodology for the
implementation of total quality management in any
sphere of business

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I. Introduction to Quality
“Quality is the best business plan” – John Lasseter, Pixar

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Introduction to
Quality

❑ Introduction and Understanding Quality

❑ Basic Concept of TQM
❑ Evolution of TQM

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i. Introduction and
Understanding
Quality

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What is Quality?
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‘The total composite product and service

characteristics of marketing, engineering,
manufacture and maintenance through which ‘Fitness for purpose or use’
– Juran, an early doyen of
the product and service in use will meet the
quality management.
expectation by the customer’
– Feigenbaum, the first man to write a book
with ‘Total Quality’ in the title.
‘the standard of something when it is
compared to other things.’
‘the totality of features and -Oxford Dictionary
characteristics of a product or
service that bears on its ability
to meet a stated or implied ‘The totality of features and characteristics of
need.’ a product or service that bear on its ability
-ISO to satisfy stated or implied needs’
– BS 4778: 1987 (ISO 8402, 1986) Quality
Vocabulary: Part
1, International Terms.
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Quality

✓ refers to certain standards and the ways and

means by which those standards are achieved,
maintained and improved.

“Performance upon expectations” and “fit for functions.”

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Dimensions of
Quality

❑ Quality is an attitude of mind. Quality is in the eye of the

consumers. It is the total sum of features liked by the
consumers while purchasing a product or service.

❑ Quality is advanced design and engineering technology.

❑ Quality is also called zero error policy. Quality could be

called as giving standard products with zero defects.

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Importance of Quality
to Consumers
❑ It enables good
customer service.
❑ It ensures error free ❑ It promises timely
products. delivery.
❑ It enhances the ❑ It helps in getting all the
development of new or desired features in
innovated products. products and services.
❑ It helps to give warranty ❑ It helps in getting
or guarantee of satisfaction after the use
products. of products and services

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Importance of Quality
to Producers/
Manufacturers

❑ Quality helps in meeting

❑ It helps in giving superior
the changing demands of
products produced with
the consumers.
advanced engineering
❑ It ensures delivery of technology
flawless or zero error
❑ It helps in meeting or
products or services.
fulfilling the
❑ It ensures delivery of commitment.
products or service on
time.

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Factors Affecting
Quality

➢Management
➢Dedicated Employees
➢Suppliers

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Quality
Management

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Quality
Management

It includes all the functions of the organization to

design and provide quality products and services
which fulfils the needs of the customers and generate
ultimate satisfaction.

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Core Concept of
Quality
Also known as: The Juran Trilogy
Management

o quality planning,
o quality controlling and
o quality improvement

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Core Concept of
Quality
Also known as: The Juran Trilogy
Management

o quality planning
refers to the process of identifying which
quality standards to focus on and then
determine what to do.

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Core Concept of
Quality
Also known as: The Juran Trilogy
Management

o quality controlling
is a system in manufacturing for
maintaining standards.

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Core Concept of
Quality
Also known as: The Juran Trilogy
Management

o quality improvement
focuses on improving the production
process.

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Summary

Quality Planning provides a system that is capable

of meeting quality standards

Quality Control is used to determine when

corrective action is required

Quality Improvement seeks better ways of doing

things

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Why should organizations care

about quality?

To survive and thrive.

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What does quality apply to?

Everything.

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Quality starts with understanding the needs

✓ Marketing processes establish the true requirements

for the product or service.

✓ Excellent communications between customers and

suppliers is the key to a total quality performance – the
organization must establish feedback systems to
gather customer information.

✓ Appropriate research techniques should be used to

understand the ‘market’ and keep close to customers
and maintain the external perspective.

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ii. Total Quality

Management

‘Excellent firms don't believe in excellence - only in constant

improvement and constant change.” -Tom Peters

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“ Defined as both philosophy and a set

of guiding principles that represent
the foundation of continuously
T
Q
improving organization.
It is the application of quantitative
methods and human resources to
improve all the process within the
organization and exceed customer
needs now and in the future.
M
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TQM
Total—Made up of the whole.

Quality—Degree of excellence a product or

service provides.

Management—Act, art, or manner of

handling, controlling, directing, etc.

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TQM requires six basic concepts:

1. A committed and involved management to
provide long-term top-to-bottom organizational
support.
2. An unwavering focus on the customer, both
internally and externally.

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TQM requires six basic concepts:

3. Effective involvement and utilization of the entire
work force.
4. Continuous improvement of the business and
production process.
5. Treating suppliers as partners.
6. Establish performance measures for the
processes.
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Primary
Elements of
TQM

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Customer first. TQM’s first and foremost pillar of

success is an unwavering focus on the customer’s
experience in all interactions with the organization.

Employee ownership. TQM requires the

involvement of every team member to ensure that
complete quality control is offered at every level.

Primary Elements of TQM

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Process-based. TQM focuses on the creation

and implementation of processes that provide
organizations with the ability to find success and
repeat it.

System integration. TQM strategies revolve

around leveraging every asset available to the
company.

Primary Elements of TQM

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Communication. TQM requires every team

member to be at their best and to function as a
value-adding member of that team.

Data-driven. TQM doesn’t employ guesswork.

Constant improvement. TQM isn’t a one and

done process.

Primary Elements of TQM

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Purpose of TQM

To provide a quality product and/or service to

customers, which will, in turn, increase
productivity and lower cost. With a higher
quality product and lower price, competitive
position in the marketplace will be enhanced.

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Benefits of TQM

o Strengthened competitive position

o Adaptability to changing or emerging market conditions
and to environmental and other government
regulations
o Higher productivity
o Enhanced market image
o Elimination of defects and waste
o Reduced costs and better cost management
o Higher profitability

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Benefits of TQM

o Improved customer focus and satisfaction

o Increased customer loyalty and retention
o Increased job security
o Improved employee morale
o Enhanced shareholder and stakeholder value
o Improved and innovative processes

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How to implement TQM?

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iii. Evolution of
Total Quality
Management

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History of
Total Quality
Management (TQM)

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History of Total Quality Management (TQM)

o Some of the first seeds of quality management were planted as
the principles of scientific management swept through U.S.
industry.

1920’s o Businesses clearly separated the processes of planning and

carrying out the plan, and union opposition arose as workers
were deprived of a voice in the conditions and functions of their
work.

o Walter Shewhart developed the methods for statistical analysis

1930’s
and control of quality.

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History of Total Quality Management (TQM)

o W. Edwards Deming taught methods for statistical analysis and
control of quality to Japanese engineers and executives. This can be
considered the origin of TQM.
o Joseph M. Juran taught the concepts of controlling quality and
1950’s managerial breakthrough.
o Armand V. Feigenbaum’s book Total Quality Control, a forerunner for
the present understanding of TQM, was published.
o Philip B. Crosby’s promotion of zero defects paved the way for quality
improvement in many companies.
o The Japanese named their approach to total quality "companywide
quality control." It is around this time that the term quality
1968 management systems arises.
o Kaoru Ishikawa’s synthesis of the philosophy contributed to Japan’s
ascendancy as a quality leader.
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History of Total Quality Management (TQM)

o TQM is the name for the philosophy of a broad and systemic

approach to managing organizational quality.
o Quality standards such as the ISO 9000 series and quality
award programs such as the Deming Prize and the Malcolm
Baldrige National Quality Award specify principles and
Today processes that comprise TQM.
o TQM as a term to describe an organization's quality policy
and procedure has fallen out of favor as international
standards for quality management have been developed.
Please see our series of pages on quality management
systems for more information.

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TQM is everyone’s
responsibility

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