Dan David Cruz Atraje

Total Quality Management (TQM) Total Quality Management (TQM) is a comprehensive and structured approach to organizational management that seeks to improve the quality of products and services through ongoing refinements in response to continuous feedback. TQM requirements may be defined separately for a particular organization or may be in adherence to established standards, such as the International Organization for Standardization's ISO 9000 series. TQM can be applied to any type of organization; it originated in the manufacturing sector and has since been adapted for use in almost every type of organization imaginable, including schools, highway maintenance, hotel management, and churches. As a current focus of e-business, TQM is based on quality management from the customer's point of view. TQM processes are divided into four sequential categories: plan, do, check, and act (the PDCA cycle). In the planning phase, people define the problem to be addressed, collect relevant data, and ascertain the problem's root cause; in the doing phase, people develop and implement a solution, and decide upon a measurement to gauge its effectiveness; in the checking phase, people confirm the results through before-and-after data comparison; in the acting phase, people document their results, inform others about process changes, and make recommendations for the problem to be addressed in the next PDCA cycle. At its core, Total Quality Management (TQM) is a management approach to long-term success through customer satisfaction. In a TQM effort, all members of an organization participate in improving processes, products, services and the culture in which they work. The methods for implementing this approach come from the teachings of such quality leaders as Philip B. Crosby, W. Edwards Deming, Armand V. Feigenbaum, Kaoru Ishikawa and Joseph M. Juran. A core concept in implementing TQM is Demings 14 points, a set of management practices to help companies increase their quality and productivity: History of Quality The roots of Total Quality Management (TQM) can be traced back to early 1920s when statistical theory was first applied to product quality control. This

concept was further developed in Japan in the 40s led by Americans, such as Deming, Juran and Feigenbaum. The focus widened from quality of products to quality of all issues within an organisation the start of TQM. Inspection Inspection involves measuring, examining, and testing products, process and services against specified requirements to determine conformity. The use of inspection has been evident throughout the history of organised production. In the late Middle Ages, special measures were taken to inspect the work of apprentices and journeymen in order to guard the Guild against claims of makeshift or shoddy work. During the early years of manufacturing, inspection was used to decide whether a workers job or a product met the requirements; therefore, acceptable. It was not done in a systematic way, but worked well when the volume of production was reasonably low. However, as organisations became larger, the need for more effective operations became apparent. In 1911, Frederick W. Taylor helped to satisfy this need. He published The Principles of Scientific Management which provided a framework for the effective use of people in industrial organisations. One of Taylors concepts was clearly defined tasks performed under standard conditions. Inspection was one of these tasks and

was intended to ensure that no faulty product left the factory or workshop; focuses on the product and the detection of problems in the product; involves testing every item to ensure that it complies with product specifications; is carried out at the end of the production process; and relies on specially trained inspectors. This movement led to the emergence of a separate inspection department. An important new idea that emerged from this new department was defect prevention, which led to quality control. Inspection still has an important role in modern quality practices. However, it is no longer seen as the answer to all quality problems. Rather, it is one tool within a wider array. [Top] Quality Control and Statistical Theory

Quality Control was introduced to detect and fix problems along the production line to prevent the production of faulty products. Statistical theory played an important role in this area. In the 1920s, Dr W. Shewhart developed the application of statistical methods to the management of quality. He made the first modern control chart and demonstrated that variation in the production process leads to variation in product. Therefore, eliminating variation in the process leads to a good standard of end products. Statistical Quality Control:

focuses on product and the detection and control of quality problems; involves testing samples and statistically infers compliance of all products; is carried out at stages through the production process; and relies on trained production personnel and quality control professionals. Shewarts work was later developed by Deming, Dodge and Roming. However, manufacturing companies did not fully utilise these techniques until the late 1940s. [Top] Quality in Japan In the 1940s, Japanese products were perceived as cheep, shoddy imitations. Japanese industrial leaders recognised this problem and aimed to produce innovative high quality products. They invited a few quality gurus, such as Deming, Juran, and Feigenbaum to learn how to achieve this aim. Deming suggested that they can achieve their goal in five years; not many Japanese believed him. However, they followed his suggestions. Maybe the Japanese thought it was rude to say that they did not believe Deming. Or maybe they thought it would be embarrassing if they could not follow his suggestions. Whatever reason it was, they took Demings and other gurus advice and never looked back. In the 1950s, quality control and management developed quickly and became a main theme of Japanese management. The idea of quality did not stop at the management level. Quality circles started in the early 60s. A quality circle is a volunteer group of workers who meet and discuss issues to improve any aspects of workplace, and make presentations to management with their ideas. A by-product of quality circles was employee motivation . Workers felt that they were involved and heard. Another by-product was the idea of improving not only quality of the products, but also every aspect of organisational issues. This probably was the start of the idea, total quality.

[Top] Total Quality The term total quality was used for the first time in a paper by Feigenbaum at the first international conference on quality control in Tokyo in 1969. The term referred to wider issues within an organisation. Ishikawa also discussed total quality control in Japan, which is different from the western idea of total quality. According to his explanation, it means company-wide quality control that involves all employees, from top management to the workers, in quality control. [Top] Total Quality Management In the 1980s to the 1990s, a new phase of quality control and management began. This became known as Total Quality Management (TQM). Having observed Japans success of employing quality issues, western companies started to introduce their own quality initiatives. TQM, developed as a catchall phrase for the broad spectrum of quality-focused strategies, programmes and techniques during this period, became the centre of focus for the western quality movement. A typical definition of TQM includes phrases such as: customer focus, the involvement of all employees, continuous improvement and the integration of quality management into the total organisation. Although the definitions were all similar, there was confusion. It was not clear what sort of practices, policies, and activities needed to be implemented to fit the TQM definition. Read more on Total Quality Management. [Top] Quality Awards and Excellence Models In 1988 a major step forward in quality management was made with the development of the Malcolm Baldrige Award in the United States. The model, on which the award was based, represented the first clearly defined and internationally recognised TQM model. It was developed by the United States government to encourage companies to adopt the model and improve their competitiveness.

In response to this, a similar model was developed by the European Foundation of Quality Management in 1992. This EFQM Excellence Model is the framework for the European Quality Award. While leading organisations compete to win awards, the main purpose of these awards is to encourage more companies to adopt quality management principles. The models are practical tools; they help organisations to measure where they are now and where they want to be in the future. The models also help organisations to create a plan to reduce the gap between these positions. Today, hundreds of quality awards and several models exist all over the world. For more information on some of these models, visit 'Excellence Models'. [Top] Business Excellence TQM models are often called Business Excellence Models. Also, TQM itself is now often called Business Excellence. This is to distinguish the new TQM from the past work on TQM. As mentioned earlier, there was confusion as to what TQM was in the 80s and early 90s. This was because any business improvement programme was becoming called TQM. Therefore, the name TQM became tarnished. Business Excellence is really the same as TQM, but with a more clearly defined approach. Read more on Business Excellence [Top] How the BPIR can help Quality Practioners and Managers Increasing number of organisations, large or small, have become involved in TQM/Business Excellence in the new millennium. The Centre for Organisational Excellence Research (COER), recognised the need for resources devoted to this area and launched the BPIR.com in April 2002. Today, the BPIR.com members' area provides the most comprehensive information and services related to quality, quality management, TQM and Business Excellence. Whether you are quality practitioner or a manager focussed on business improvement, the resources within the members' area will help you to have a greater impact within your workplace.

Seven Important Personalities: Armand V. Feigenbaum (Born 1922) is an American quality control expert and businessman. He devised the concept of Total Quality Control, later known as Total Quality Management (TQM). Feigenbaum received a bachelor's degree from Union College, his master's degree from the MIT Sloan School of Management, and his Ph.D. in Economics from MIT. He was Director of Manufacturing Operations at General Electric (19581968), and is now President and CEO of General Systems Company of Pittsfield, Massachusetts, an engineering firm that designs and installs operational systems. Feigenbaum wrote several books and served as President of the American Society for Quality (19611963)

His contributions to the quality body of knowledge include: "Total quality control is an effective system for integrating the quality development, quality maintenance, and quality improvement efforts of the various groups in an organization so as to enable production and service at the most economical levels which allow full customer satisfaction. The concept of a "hidden" plantthe idea that so much extra work is performed in correcting mistakes that there is effectively a hidden plant within any factory. Accountability for quality: Because quality is everybody's job, it may become nobody's jobthe idea that quality must be actively managed and have visibility at the highest levels of management.

The concept of quality costs

W. Edwards Deming (October 14, 1900 December 20, 1993) was an American statistician, professor, author, lecturer and consultant. He is perhaps best known for his work in Japan. There, from 1950 onward, he taught top management how to improve design (and thus service), product quality, testing, and sales (the last through global markets) through various methods, including the application of statistical methods. Deming made a significant contribution to Japan's later reputation for innovative high-quality products and its economic power. He is regarded as having had more impact upon Japanese manufacturing and business than any other individual not of Japanese heritage. Despite being considered something of a hero in Japan, he was only just beginning to win widespread recognition in the U.S. at the time of his death.

Deming was an American who worked in the 1930s with Walter A. Shewhart at Bell Telephone Company. Shewhart was a statistician who had the theory that product control could best be managed by statistics. He developed a statistical chart for the control of product variables. Deming developed a process, based on Shewhart's, using statistical control techniques that alerted managers of the need to intervene in the production process. He then utilized these techniques during World War II while working on government war production. In 1947 Douglas MacArthur and the U.S. State Department sent Deming to Japan to help the war-devastated Japanese manufacturing plants. He introduced these "statistical process control" methods in a series of lectures on statistical methods to Japanese businessmen and engineers. The Japanese were an attentive audience and utilized Deming's ideas readily. They found him charming and considerate and listened to his ideas. His concept of employees working toward quality fit well into their personal ideas. His philosophy went beyond statistical quality control and encouraged building quality into the product at all stages.

Deming developed the chain reaction: as quality improves, costs go down and productivity goes up; this leads to more jobs, greater market share, and long-term survival. He stressed worker pride and satisfaction and considered it management's job to improve the process, not the worker. Quality circles, a central Deming theme, are based on the importance of employees meeting regularly in groups to comprehensively discuss product quality. The GDP in Japan rose steadily from 1960s by more than 10 percent per year. By 1951 the Japanese had named their quality prize in his honor. Deming's book, Out of the Crisis, emphasized improving quality of the product as more important than short-term financial goals. He de-emphasized quantity, and emphasized quality. He believed that "statistical process control" was an invaluable instrument in the quest for quality. Deming developed fourteen points for management which can be summarized as:

1. Create constancy of purpose toward improvement of product and service, with the aim to become competitive, stay in business and to provide jobs. 2. Adopt the new philosophy. We are in a new economic age. Western management must awaken to the challenge, must learn their responsibilities, and take on leadership for change. 3. Cease dependence on inspection to achieve quality. Eliminate the need for massive inspection by building quality into the product in the first place. 4. End the practice of awarding business on the basis of a price tag. Instead, minimize total cost. Move towards a single supplier for any one item, on a long-term relationship of loyalty and trust. 5. Improve constantly and forever the system of production and service, to improve quality and productivity, and thus constantly decrease costs. 6. Institute training on the job. 7. Institute leadership (see Point 12 and Ch. 8 of "Out of the Crisis"). The aim of supervision should be to help people and machines and gadgets do a better job. Supervision of management is in need of overhaul, as well as supervision of production workers. 8. Drive out fear, so that everyone may work effectively for the company. 9. Break down barriers between departments. People in research, design, sales, and production must work as a team, in order to foresee problems of production and usage that may be encountered with the product or service.

10. Eliminate slogans, exhortations, and targets for the work force asking for zero defects and new levels of productivity. Such exhortations only create adversarial relationships, as the bulk of the causes of low quality and low productivity belong to the system and thus lie beyond the power of the work force. 11. a. Eliminate work standards (quotas) on the factory floor. Substitute with leadership. b. Eliminate management by objective. Eliminate management by numbers and numerical goals. Instead substitute with leadership. 12. a. Remove barriers that rob the hourly worker of his right to pride of workmanship. The responsibility of supervisors must be changed from sheer numbers to quality. b. Remove barriers that rob people in management and in engineering of their right to pride of workmanship. This means, inter alia," abolishment of the annual or merit rating and of management by objective 13. Institute a vigorous program of education and self-improvement. 14. Put everybody in the company to work to accomplish the transformation. The transformation is everybody's job.

Besides the fourteen points, Deming is known for the Deming Cycle and the Seven Deadly Diseases. The Deming Cycle is illustrated in Figure 1. It involves five steps: consumer research and planning of the product (plan), producing the product (do), checking the product (check), marketing the product (act), and analyzing how the product is received (analyze.) The Seven Deadly Diseases can be summarized as: 1. Lack of constancy of purpose to plan products and services.

Figure 1 The Deming Cycle 2. Emphasis on short-term profits. 3. Personal review systems for managers and management by objectives. 4. Job hopping by managers. 5. Using only visible data in decision making. 6. Excessive medial costs. 7. Excessive costs of liability driven up by lawyers that work on contingency.

Joseph M. Juran

Joseph M. Juran, like Deming, went to Japan in 1954 and assisted the Japanese in their quest to achieve quality. Like Deming, Juran emphasized planning, organizing and controlling. However he emphasized customer satisfaction more than Deming did and focused on management and technical methods rather than worker satisfaction. Juran was a prolific author, publishing over a dozen books. His most influential book Quality Control Handbook (later called Juran's Quality Handbook )was published in 1951 and became a best seller. By 1960 Japan was using quality control circles and simple statistical techniques learned and applied by Japanese workers. Juran developed basic steps that companies must take, however he believed there was a point of diminishing return, a point at which quality goes beyond the consumer needs. For example, if the consumer trades his car in after 50,000 miles, the car need only be built to perform trouble-free for 60,000 miles. Building a better car would drive up costs without delivering the expected product. This is called the Pareto Principle, or the Juran 80/20 rule: 80 percent of the trouble comes from 20 percent of the problems. The rule is named for Vilfredo Pareto, an economist, but it was Juran that applied the idea to management. It can be expressed as: "concentrate on the 'vital few' sources of problems; don't be distracted by less important problems." Juran's trilogy involves:

1. Quality planning (determine customer needs, develop product in response to needs). 2. Quality control (assess performance, compare performance with goals, act on differences between performance and goals). 3. Quality improvement (develop infrastructure, identify areas of improvement and implement projects, establish project team, provide teams with what they need). Juran's ten steps to quality improvement are: 1. Build awareness of opportunities to improve. 2. Set goals. 3. Organize to reach goals. 4. Provide training. 5. Carry out projects to solve problems. 6. Report progress. 7. Give recognition. 8. Communicate results. 9. Keep score. 10. Maintain momentum by making annual improvement part of the systems and processes of the company. The Union of Japanese Scientists and Engineers (JUSE) considered Juran's vision of top-to-bottom quality management even more important to their quality turnaround than Deming's insights. JUSE asked Juran if it could name its top-level award, a 'superDeming award' after him, but he declined. This medal is called the Japan Quality Control Medal.

Walter A. Shewhart Philip B. Crosby

Philip Crosby, author of Quality is Free, founded the Quality College in Winter Park, Florida. Crosby emphasized meeting customer requirements by focusing on prevention rather than correction. He claimed that poor quality costs about 20 percent of the revenue; a cost that could be avoided by using good quality practices. He pushed for zero defects. His "absolutes" are: (1) quality is defined as conformance to requirements, not goodness; (2) the system for achieving quality is prevention, not appraisal; (3) the performance standard is zero defects, not that's close enough; and (4) the measure of quality is the price of non-conformance, not indexes. Crosby's method does not dwell on statistical process control and problem solving techniques that the Deming method uses. He stated that quality is free because prevention will always be lower than the costs of detection, correction and failure. Like Deming, Crosby had fourteen points: 1. Manage commitment, that is, top level management must be convinced and committed and communicated to the entire company. 2. Quality improvement team composed of department heads, oversee improvements. 3. Quality measurement are established for every activity. 4. Cost of quality is estimated to identify areas of improvement. 5. Quality awareness is raised among all employees. 6. Corrective action is taken. 7. Zero defects is planned for. 8. Supervisor training in quality implementation. 9. Zero defects day is scheduled. 10. Goal setting for individuals. 11. Error causes are removed by having employees inform management of problems. 12. Recognition is given, but it is non-financial, to those who meet quality goals. 13. Quality councils meet regularly. 14. Do it all over again (i.e., repeat steps one through thirteen). Looking at the history of quality management, we see several stages of development. The first was quality control, which involved setting up product specifications and then inspect the product fore for leaves the plant. The second state is quality

assurance, which involved identifying the quality characteristics and procedures for quantitatively evaluating and controlling them. The next phase is the true total quality control, a term actually coined by Feingenbaum in 1983. At this stage the quality became a total organization effort. It effected production, profit, human interaction and customer satisfaction. The fourth stage is total quality management. In TQM the customer is the center and quality is an organization-wide effort.

Kaoru Ishikawa Genichi Taguchi