TQM resources for production.

Operations
management approaches the acquisition of
Module 1 materials and the use of labor in a timely,
What Is Operations Management?
cost-effective manner to deliver customer
Operations management is the
expectations. Inventory levels are
administration of business practices to
monitored to ensure excessive quantities
create the highest level of efficiency
are on hand. Operations management is
possible within an organization. It is
responsible for finding vendors that supply
concerned with converting materials and
the appropriate goods at reasonable prices
labor into goods and services as efficiently
and have the ability to deliver the product
as possible to maximize the profit of an
when needed.
organization. Operations management
teams attempt to balance costs with
Another large facet of operations
revenue to achieve the highest net
management involves the delivery of goods
operating profit possible.
to customers. This includes ensuring
products are delivered within the agreed
Understanding Operations Management
time commitment. Operations management
Operations management involves utilizing
also typically follows up with customers to
resources from staff, materials, equipment,
ensure the products meet quality and
and technology. Operations managers
functionality needs. Finally, operations
acquire, develop, and deliver goods to
management takes the feedback received
clients based on client needs and the
and distributes the relevant information to
abilities of the company.
each department to use in process
improvement.
Operations management handles various
strategic issues, including determining the
Operations managers are involved in
size of manufacturing plants and project
coordinating and developing new processes
management methods and implementing
while reevaluating current structures.
the structure of information technology
Organization and productivity are two key
networks. Other operational issues include
drivers of being an operations manager,
the management of inventory levels,
and the work often requires versatility and
including work-in-process levels and raw
innovation.
materials acquisition, quality control,
materials handling, and maintenance
Total Quality Management (TQM) is not a
policies.
fresh idea. The approaches advocated by
Deming, Juran, Crosby, and others have
Operations management entails studying
long been used by well effective managers.
the use of raw materials and ensuring
The most noteworthy feature is the level of
minimal waste occurs. Operations
mutual trust that is needed by both
managers utilize numerous formulas, such
management and staff to create a culture
as the economic order quantity formula to
in which an effective quality management
determine when and how large of an
program can be successful. Quality is
inventory order to process and how much
currently everyone's task, not just the
inventory to hold on hand.
inspection department. People are
anticipated to seriously weigh up their jobs
A critical function of operations
and make the first move to improve their
management relates to the management of
part of the process. Open, objective
inventory through the supply chain. To be
measurements are necessary.
an effective operations management
professional, one must be able to
DEFINING QUALITY
understand the processes that are essential
to what a company does and get them to
Quality is a lot more than the nonexistence
flow and work together seamlessly. The
of defects which allow companies to meet
coordination involved in setting up business
customer expectations. Quality needs-
processes in an efficient way requires a
controlled process improvement, allowing
solid understanding of logistics.
companies to exceed customer's
expectations. Quality will let companies to
An operations management professional
re-establish pride and loyalty in their
understands local and global trends,
organizations. Quality can only be attained
customer demand and the available
by the nonstop improvement of all systems
and processes in the organization, not (airlines), "The great American beauty...its
simply the production of products and elegant" (automobile) and "It
services but also the design, development, means beautiful eyes" (cosmetics) are
service, purchasing, administration and examples. Television and print media are
indeed, all aspects of the transaction with flooded with such indescribable claims, and
the customer. Each one must work in therein lays the problem that quality is not
concert toward similar end. easy to define or operationalized. It
Quality can only be observed through the therefore becomes obscure when using the
eyes of the customers. An understanding approach as a source of competitive
of the customer's expectations advantage. Besides, the functions of
(effectiveness) is the first step. Then design, production and service may
exceeding those expectations (efficiency) is discover it complicated to t se the definition
required. Communications will be the key. as a starting point for quality management.
Going beyond customer expectations
guarantees meeting all the definitions of 2. Product-based- Quality is observed as a
quality. quantifiable or measurable characteristic or
Different people understand quality in a attribute. For instance, durability or
different manner. Hardly anyone. can reliability can be measured and the
describe quality in quantifiable terms that engineer can draw to that yardstick. Quality
can be operationalized. The banker may is concluded objectively. Although this
differentiate their products or service with approach has many benefits, it has
"service"; for the health care worker it is limitations as well. The yardstick for
"quality health care"; for the hotel or measurement may be deceptive where
restaurant employee it is "customer quality is founded on individual taste or
satisfaction"; and for the manufacturer it is preference.
simply "quality product." A few individuals
can provide a specific definition and 3. User-based - This definition is founded
measurement of quality when pressured. on the idea that quality is an individual
There is an old saying in management issue and products that best please their
which says, "If you can't quantify it, you preferences (perceived quality) are those
can't manage it,' and it is also true with with the highest quality. This is an approach
quality. Every member of the organization based on reason but directs to two
should be clear about its concept, definition problems. First consumer preferences
and measurement as it applies to his job if differ extensively and it is not easy to
the strategic management system and the combine these preferences into products
competitive advantage are to be based on with broad demand. This leads to the
quality. Appropriate quality can be selection between a niche strategy and a
identified or perceived in a different way in market aggregation approach which strives
the same company. to identify those product attributes that
support the needs of the biggest number of
Approaches to Quality Definition customers. Another problem concerns
whether quality and customer satisfaction
In his book Managing Quality, Harvard are the same. Probably not. One may
Professor David Garin summarized five confess a Montero has many quality
principal approaches to defining quality attributes, but contentment may be better
namely: realized with an Adventure. One has only to
remember the box office success of recent
1. Transcendent - Most people would agree motion pictures that endure from poor
that the Mona Lisa or Michael angelo's quality but are obviously favored by the
David are works of art which represent largest number of moviegoers.
quality because people travel from around
the world to view them. But can they define 4. Manufacturing-based - The definition is
it? Those who embrace focused mainly with engineering and
the transcendental outlook would say, "I manufacturing practices and use the
can't define it, but I know it when I universal definition of "conformance
witness." Advertisers are inclined of requirements." Requirements or
promoting products in these terms. specifications are launched by design and
"Where shopping is a pleasure" any difference involves a decline in quality.
(supermarket), "We love to fly and it shows" The concept is relevant to services as well
as products. Superiority in quality is not Quality Types
automatically in the eye of
the beholder but rather in the standards set In general, quality is meeting and
by the organization. Thus, both exceeding customer expectations at a price
Fortuner and Isuzu Max possess quality, as that he is willing to pay to possess the
do Adventure and Innova's as product or service. There are three types of
long as the product or service quality which are quality of design, quality
"conformance requirements" are met. This of conformance and quality of performance.
approach has a serious weak point. The
consumer's perception of quality 1. Quality of Design - is all about set
is compared with conformance and thus is characteristics that the product or service
internally focused. Stress on the must minimally have to satisfy the
reliability in design and manufacturing is requirements of the customer based on
inclined to attend to cost reduction market research. Thus, the product or
as the objective. Cost reduction is service must be designed in such a way
perceived in a limited way which is to so as to meet at least minimally the needs
invest of the consumer at a given cost.
in design and manufacturing improvement However, the design must be simple and
until these incremental costs equal also less expensive so as to meet the
the costs of non-quality like rework and customers' product or service expectations.
scrap. This approach goes against Crosby's Quality of design is influenced by many
concept of "quality is free." factors, such as product type, cost, profit
policy, demand of the product, availability
5. Value-based - It is defined using costs of parts and materials, and product
and prices as well as the number of reliability.
attributes. Hence, the consumer's
purchase decision is founded on quality This process of developing a product
at an up to standard price. This approach is requires effective exchange of ideas among
based on two criteria which is marketing, sales, services, manufacturing,
quality and value. The highest quality research and development departments.
product is not typically the best value. Market research and service call analysis
That description is given to the "best-buy" are the center of this process. Market
product or service. research on consumer shall indicate the
customer needs
Other definitions from recognized (current and potential) and sales call
organizations and experts in the world of analysis will provide investigation about
quality are: problems customers face with the product
● Quality is the degree to which an performance.
object or entity (e.g., process, product, or
service) satisfies a specified set of 2. Quality of Conformance - is basically
attributes or requirements. meeting the standards or user-based
● The quality of something can be characteristics defined in the design phase
determined by comparing a set of inherent after the product is manufactured or while
characteristics with a set of requirements. If the service is delivered. It refers to the
those inherent characteristics meet all extent in which the firm and its suppliers
requirements, high or excellent quality is are able to manufacture products with
achieved. If those characteristics do not expected level of reliability and uniformity
meet all requirements, a low or poor level at a specified cost with quality
of quality is achieved. requirements based on the study made on
● Quality is the degree to which a set quality design. This phase is also concerned
of inherent characteristics fulfils about quality control
requirements. starting from raw material to the finished
● A subjective term for which each product. Three broad aspects are
person or sector has its own definition. In covered in this definition, namely defect
technical usage, quality can have two detection, defect root cause analysis, and
meanings: 1. the characteristics of a defect prevention. Defect prevention deals
product or service that bear on its ability to with the means to deter the
satisfy stated or implied needs; 2. a product occurrence of defects and is usually
or service free of deficiencies. achieved using statistical process control
techniques. Detecting defects may be by
inspection, testing or statistical data quality requirements. A customer is
analysis collected from process. anyone who receives one or more of the
Subsequently, the root causes behind the organization's products or services who
presence of defects are investigated, and could be an internal or external one. The
finally corrective actions are taken to following issues may help define quality at
prevent recurrence of the defect. this level:
1. Products or services that meet customer
3. Quality of Performance - is how sound expectations
the product functions or service 2. Products or services that do not meet
performs when put to use. It measures the customer expectations
degree to which the product or 3. Products or services that are needed by
service pleases the customer from the the customers but they do not received
angle of quality of design together with the 4. Products or services that are not needed
quality of conformance. Meeting customer by the customers but they do not
expectation is the focus of Received
quality of performance. Automobile
industry performs test drive of vehicles to The resolution to these issues will include
gather information concerning mileage and productivity and cost requirements and
oil consumption. Bulbs are life tested to be those that are traditionally linked to quality.
aware of its reliability throughout its useful Timeliness, accessibility and value for
life. Customer survey is carried out to money are quality features for a customer.
discover customer's perception about During interviews identified customer
service rendered. If requirements are converted into specific
product or service does not meet to measures and then into performance
customer expectation, then modifications standards.
are considered necessary in the design or Most quality-focused organizations, aside
conformance phase. from data gathering use benchmarking to
compare its functions with the same
Quality Levels functions as other organizations.
Quality focused organization must Benchmarking should be a continuing
evaluate at three levels namely concern to make certain that the
organization, process and individual. organization employs ongoing improvement
Quality systems and standards must be to compete and deliver demanded
defined at each level and then manage customer requirements. Customer feedback
quality thorough improvement efforts. The is also essential to ensure that
organization, process and individual are co- organizational quality management is a
dependent and are linked together in a constant concern. Feedback on a regular
total system that eventually decides the basis must come from both internal and
quality of products and services of an external customers. Standards coming
organization. Having received faulty parts from customer requirements must be the
by a customer would mean a problem at foundation for goal-setting, problem
any or all levels. Perhaps an operator has solving, performance evaluation, incentive
assembled the faulty part incorrectly or compensation, nonfinancial rewards and
allows the faulty part shipped. Or probably resource allocation.
there might problems in the basic
processes such as design, production, order Process Level (linking internal and external
entry or materials acquisition processes. customer requirements)
Organization, represented by top
management could also be blamed At the process level, units of the
because of not being able to identify the organization are categorized into functions
quality necessary to be competitive, or departments like marketing, operations,
inappropriate strategy, unable to establish finance, human resource and so on. Most
necessary policies, budgets, goals and processes are cross-functional so managers
measures. can optimize the activities of his
department and sub-optimize the activities
Organizational Level (Meeting external of the entire organization. The following
customer requirements) issues may help define quality at this level:

The organizational level quality 1. 1. Products or services that are most

requirements revolve around its customers' important to external customers
2. Processes that produce those products or level without being connected to the overall
services needs of the system.
3. The key inputs to the process Individuals are one of the vital components
4. Processes that have the most major of the human performance system. At the
effect on the organization's customer-drive micro level they serve as a reflection of the
performance standards process and the system being used by the
5. The internal customers and their needs organization. Each individual under the
human performance system accepts inputs,
Defining quality at the process level starts generate outputs and then adjust his
with determining the end-customer performance from the feedbacks obtained.
requirements for the process. End- Developing standards to measure each
customer requirements should then be individual key output is a necessity to
translated into specific measures that define individual quality. The standards
should drive one or more internal measures created from organization and process
for the overall process. These measures levels should be the basis for these
must be brought to the different sub- standards to be developed. Productivity and
process and sub sub-process. The outcome cost are the requirements for a customer-
is a set of meters in addition to the specific driven quality. With these requirements the
standards they produce placed at key areas to be measured to qualify individual
stages of the process that will serve as the standard would include accuracy,
basis for monitoring each step's completeness, innovativeness, reliability,
contribution to process quality. The meters ease of use, timeliness, volume, rate, cost
and standards will also be used for and flexibility.
troubleshooting the system in case
customer requirements are not met. Three issues have to be answered for each
Like managing organizational quality, it output of the individual tasks in order to
requires search for improvement develop individual qualities which are:
opportunities to handle process quality. As
an example, a producer of electronic 1. The requirement of both internal and
components faces a problem of excessive external customers
cycle time (the time from customer order to 2.The manner of measuring the
customer receipt of the product). The requirements
product was given to the customer late 3.The specific standards for each measure
83% of the time. Through developing a map
and setting up performance measures, the Under the human performance system, the
company discovered that the largest fault quality of each individual work or
was in other areas. A customer order to performance is shaped by these factors:
reach fabrication took 13 days. During most 1. The input an individual receives which
of the time, the order was hanging around consists of how clear the
for the next processing time. The initial performance expectations are, the
process improvement attempt created a reasoning of the work procedures, the
reduction in cycle time from 13 weeks to sufficiency of resources, the
five weeks. Without suffering in product appropriateness of skills and knowledge
quality, the process continually improves and
and cycle time has been reduced to 19 how clear the cues that prompt
days only. performance?
2. The positive/negative results for
Performer/Job/Task Design Level(Meeting performing as desired/not desired
internal customer requirements) 3. The feedback an individual obtains such
as the nature of the information
Nearly all people desire to do high-quality given, when and how frequent it is given
work, but often times they are limited by and the manner in which it is provided
systems that do not support it. It is vital to 1. 4. An individual's physical, mental
generate an individual quality in and emotional capacity.
the context of organization and process
quality despite quality being broken at the
individual level. The statistical tools for
instance are not appreciated by workers
because the tools are used at the individual
 are from automobile parts and electronic
components.

4. Total quality management paradigm -

This paradigm focuses on customers and
suppliers in addition to mass production
and statistical methods. Possible
customers participate in product definition,
creation and performance evaluation
stages to inform the producer what to
design and build. Using employee
involvement and empowerment,
customer-focus, continues improvement,
top management commitment, training and
Quality Paradigms teamwork, the producer successfully
1. Custom-craft paradigm - In this paradigm delivers a product the customers want. This
the focus is on the product or service and paradigm results in high quality product,
performance should be exactly as what low-cost, speedy delivery and substantial
customer demands. Each product unit is decrease for rework and scrap. The
designed and built exactly the way the requirements contain interchangeable
customer wants it. The requirements parts, factory power, statistical methods,
include skilled craftsperson, basic hand empowered employees, supplier
tools, and demand for unique product. partnerships, and customer relationships.
Some examples of this pattern are from Some examples of this pattern are from
bank loans, coffee shops, tailor's shops and products/services of TQM companies.
furniture suppliers.
5. Techno-craft paradigm - This paradigm is
2. Mass production and sorting paradigm - the socio-technical complement to the
Here the focus is on production rate custom-craft paradigm with the intention of
without direct involvement of the customer. reducing delivery time. Each unit is
Products are designed and built based on designed and builds exactly the way the
how the customer defined the products. customer wants it built using high level of
Rework and scrap are obvious since product product process flexibility. The
performance is low. Sales are taken from requirements incorporate interchangeable
the stock held which makes delivery time parts, factory power, statistical methods,
typically low. Service organizations under empowered employees, supplier
this paradigm are labor-intensive. The partnerships, customer relationships,
requirements consist of interchangeable customer aided design, and customer-aided
parts, factory power, unskilled labor pool, manufacturing. Some examples of this
large customer pool and hard-selling. Some pattern are from the software and apparel
examples of this pattern are from industries.
automobile parts and readymade buildings
for commercial enterprises Cost of Quality
3. Statistical quality control paradigm - This Cost of quality is a method that permits an
paradigm is comparable to the organization to decide on the level to which
mass production and sorting paradigm its resources are used for activities that
except that more emphasis is given to avoid poor quality, that assess the quality
production processes. The application of of the organization's products or services,
this paradigm together with mechanized and that result from internal and external
production results in low scrap and rework failures. An organization is able to
and low production cost. Products are determine the potential savings to be
designed and built, statistical process gained by implementing process
control and statistical sampling are used, improvements having such information.
and then customers are generated. The Quality-related activities that incur costs
requirements may be divided into prevention costs,
comprise interchangeable parts, factory appraisal costs, and internal and external
power, unskilled labor pool, large failure costs.
customer pool, hard-selling, statistical 1. Prevention Costs - These are incurred to
methods. Some examples of this pattern prevent or avoid failure problems.
Prevention activities lead to reduce of b. Scrap - faulty product or material that
failure and appraisal cost. These costs cannot be repaired, used, or sold
are associated with the design,
implementation, and maintenance of the c. Rework or rectification - improvement of
quality flawed material or errors
management system. They are planned d. Failure analysis - activity necessary to
and incurred before actual operation, ascertain the reasons of internal product or
and they could include: service failure

a. Product or service requirements - 4. External Failure Costs - These are costs

establishment of qualifications for obtained to treat defects exposed by
inward bound materials, processes, finished customers. These costs occur when
products, and services products or services that fail to attain
b. Quality planning - drawing of plans for design quality standards are not discovered
quality, reliability, operations, until after transfer to the customer. They
production, and inspection could include:
a. Repairs and servicing - of both returned
c. Quality assurance - planning and products and those in the field
continuance of the quality system b. Warranty claims - failed products that
are replaced or services that are re-
d. Training - development, preparation, and performed under a guarantee
continuance of programs c. Complaints - all work and costs
connected with handling and servicing
2. Appraisal Costs - These costs are customers' complaints
associated with measuring and monitoring d. Returns - handling and investigation of
activities related to quality standards and discarded or recalled products, including
performance requirements. These costs transport costs
take place from spotting defects rather
than prevention. These costs are There are two main components of cost of
associated with the suppliers' and quality which are cost of conformance and
customers' evaluation of purchased cost of non-conformance. Cost of
materials, processes, products, and conformance is the cost of making available
services to ensure that they conform to products or services based on required
specifications. They could include: standards. Simply it is a good amount spent
such as prevention and appraisal costs
a. Verification - checking of inward (Cost of Conformance is the money spent,
bound material, process setup, and or costs incurred, during the project to
products against contracted specifications. avoid failures or to ensure quality). Cost of
non-conformance means failure costs linked
b. Quality audits - confirmation that the with a process not functioning based on
quality system is operating properly. required standards (Cost of Non-
Conformance is the money spent or costs
c. Supplier rating - appraisal and incurred during or after the project,
endorsement of suppliers of products and because of failures due to poor quality).
services. Simply it is a pointless amount spent like
internal and external costs.
3. Internal failure Costs - These costs Essentially quality costs are defined as the
are acquired to treat defects revealed total costs acquired by investing in the
earlier prevention of non-conformance to
when the product or service is delivered to requirements and appraisal of a product or
the customer. These costs happen when service for conformance to requirements
the results of work fail to attain design and failure to meet requirements.
quality standards and are noticed before
they are transferred to the customer. They DEFINING TOTAL QUALITY MANAGEMENT
could include:
a. Waste - performance of needless work or Total Quality Management (TQM) is an all-
holding of stock as an outcome inclusive and well-thought-out means to
of errors, poor organization, or organizational management that searches
communication to advance the quality of processes,
products, services and culture through
continuing minor changes in reply to quality of an exacting process should come
constant feedback. TQM consists of from the employees who work in the
continuous process enhancement activities process and the managers who work on the
concerning managers and workers alike in process. Communication must be
an organization in a completely integrated encouraged to let employees and
effort toward improving performance at all management to work jointly to attain the
level. This enhanced performance is aimed shared goal of continuous process
at satisfying such cross-functional goals as improvement.
quality, cost, schedule, mission, need and
suitability. TQM combines basic TQM necessities may be defined
management techniques, current independently for a specific organization or
improvement efforts and technical tools in may be in loyalty to established standards,
a disciplined approach focused on like the International Organization for
continuous process improvement. The Standardization's ISO 9000 series. TQM can
activities are eventually focused on be applied to any type of organization; it
improved customer satisfaction. originated in the manufacturing sector and
has since been adapted for use in almost
TQM begins with a focus on the customer every type of organization imaginable,
and is boundless, with a life- including schools, highway
time dedication to continuous maintenance, hotel management, and
improvement. TQM merges a participative churches. As a current focus of e-business,
philosophy of management attributed to Dr. TQM is based on quality management from
Edwards Deming with importance on the customer's point of view.
quantitative techniques and employee
involvement to get better the quality of The Primary Elements of TQM
goods and services. TQM is a process of Quality is a necessary parameter which
controlled change that comprises the entire helps organizations outshine their
employees in the improvement of the competitors and survive the fierce
quality of products and services to boost competition.
the productivity of the organization. TQM The achievement of TQM depends on
optimizes innovative approaches to following eight elements which are
problem solving and shifts the organization further classified into following four groups.
from defect detention to defect prevention.
With TQM all of the organization's resources Foundation
are used effectively to improve all of its
processes. TQM engages everybody in the The entire process of total quality
organization from the top management to management is built on a strong foundation
the lowest position. The timing, of ethics, integrity and trust. TQM involves
progression, method of execution and every single employee irrespective of his
integration of these elements will differ designation and level in the hierarchy.
from one organization to another. 1. Ethics - Ethics is a combination of written
and unwritten codes of principles
Essential to the TQM approach is the that govern decisions and actions within a
transformation in management philosophy company. It is an understanding of
regarding the "responsibility for quality." the difference of good and bad decision
Previously it is given to a separate group of making and behavior at the business world.
individuals in a It boils down to following the code of
department/directorate/division frequently, conduct of organization and adheres to
designated as Quality Assurance. In TQM, rules and regulations. It describes the
the responsibility for quality is given to actions of individuals within an organization
everyone, each and every employee, from as well as those of the organization as a
top management to the lowest position in whole.
the organization. 2. Integrity - Integrity is the consistency of
actions, values, methods, measures,
TQM is accomplished using a team principles, expectations and
organization with both management and outcomes at workplace. There is a need to
the employees as members of "Quality respect
Teams" which focus on continuous process organization's policies. Avoid spreading
enhancement. Those who do a job know it unnecessary rumors about fellow
best. Thus, suggestions to improve the
workers. TQM does not work in an systems. Team members ought to help
environment where employees criticize each other to find a solution and put into
and backstab each other. place.
Teamwork offers contiguous improvement
3. Trust - Trust is one of the most in processes and operations. The teams
important factors necessary for may be:
implementation a. Problem-solving-These are temporary
of TQM because it builds a cooperative and formed to solve certain problems,
environment. It is a relationship based on identify and overcome causes of those
reliance. Employees need to trust each problems. They generally last from one
other to ensure participation of week to three months.
everybody and allows empowerment that
encourages pride of ownership and b. Quality improvement - These are
commitment. Trust fosters individual risk- temporary teams with the purpose of
taking for continuous improvement and is dealing with specific problems that often
essential to ensure customer satisfaction. recur. These teams are set up for
Trust improves relationship among a period of three to twelve months.
employees and eventually helps in ' better
decision making which c. Natural work - These teams consist of
further helps in implementing TQM small groups of skilled workers
successfully. who share tasks and responsibilities. These
teams use concepts such as
employee involvement teams, self-
Building Bricks managing teams and quality circles.
Bricks are placed on a strong foundation to
reach the roof of recognition. The 3. Training - Employees need to be trained
foundation needs to be strong enough to on TQM to become highly productive.
hold the bricks and support the roof. Managers need to make their fellow
Leadership, teamwork and training are the workers aware of the benefits of TQM and
building bricks of TQM. how would it make a difference in their
product quality and eventually yield profits
for their organization. Employees need to
1. Leadership - Leadership provides a be trained on interpersonal skills, the ability
direction to the entire process of TQM. to work as a team member, technical know-
It is about raising the aspirations of how, decision-making skills, problem
followers and enthusing people with a solving skills and so on. Training enables
desire to reach the goals. Leadership in employees to implement TQM effectively
TQM requires the manager to provide within their departments and also make
an inspiring vision, make strategic decisions them indispensable resources.
and instill values that guide subordinates.
TQM needs to have a supervisor who acts
as a strong source of
inspiration for other members and can
assist them in decision making. A leader
himself needs to believe in the entire
process of TQM for others to believe in
the same. Proper downloads, briefs about
TQM must be given from to time to
employees to help them in its successful
implementation. TQM initiatives have
to be introduced and led by the top
management.

2. Teamwork - Team work is a crucial

element of TQM. Rather than working Binding Mortar
individually, employees need to work in Binding mortar binds all the elements
teams. When individuals work in unison, together. Communication binds
they are in a position to brainstorm ideas everything together, starting from the
and come up with various solutions which foundation and going up to the roof.
would improve existing processes and
Communication is the vital link between all leads to external customer satisfaction in
the TQM elements and must be the organization. There can be a huge
prevalent in an organization in order for change in self-esteem, productivity and
TQM to work the way it should. The quality when the contributors are
channels of communication need to be recognized. Recognition is the final element
credible and easily interpreted for all of TQM. Recognition is the most important
members of the organization. factor which acts as a catalyst and drives
Communication binds employees and employees to work hard as a team and
extracts the best out of them. Information deliver their lever best. Every individual is
needs to be passed on from the sender to hungry for appreciation and recognition.
the recipient in its desired form. Small Employees who come up with improvement
misunderstandings in the beginning lead to ideas and perform exceptionally well must
major problems later on. Employees need be appreciated in front of all. They should
to interact with each other to come up with be suitably rewarded to expect a brilliant
problems existing in the system and find performance from them even the next time.
their solutions as well. Three types of The most important responsibility on a
communication take place between supervisor is that of according recognition
employees: to the employees.

1. Downward communication - This is the

dominant form of communication in Core Concepts of TQM
an organization. Presentations and
discussions are two examples of this form Each of the following core concepts of TQM
of communication. Flow of information can be used to drive the process of
takes place from the management continuous improvement and to develop a
to the employees. The supervisors are able framework for quality improvements over
to make the employees clearly many years.
understand TQM using this type of
communication. 1. Customer satisfaction - TQM is centered
on the requirements of the customer. In
2. Upward communication - Flow of order to meet customer requirements, it is
information takes place from the lower-level imperative to listen to them and do what is
employees to the top-level management. agreed upon. Companies have to give
The lower-level employees are able to offer identical importance to the internal as well
suggestions on the effects of TQM to the as the external customers. A better
upper-level management technique for companies to use their
using this type of communication. customers is to learn what is significant to
Supervisors should listen effectively and them and then, equal their performance to
incorporate the insights and constructive the customer's satisfactions. Many forward-
criticisms offered by the employees looking companies of the world have
in correcting the situations that arise started the process of carrying out a survey
through the use of TQM. This creates a level known as "energy meter" which reflects the
of trust between supervisors and satisfaction, morale, and motivation levels
employees. This is also similar to of employees and develops the model of
empowering communication, where "employeeship" with core stress on the
supervisors listen to others. principles of customer satisfaction. Further,
on the external customer front, surveys are
3. Sideways/lateral communication - carried out among the customers for
Communication also takes place between identifying their satisfaction, expectations
various departments. This type of and the causes for low customer
communication is important because it satisfaction. For that reason, the
breaks down barriers between satisfaction index is compiled and product
departments. It also allows a more qualities are monitored to improve
professional dealing with customers and customer satisfaction.
suppliers.
2. Internal customer satisfaction -
Roof Customers are not only external customers,
but the people outside who are the end
It includes recognition which brings greater user of a firm's products and services.
internal customer satisfaction which in turn There is also the internal customer, the
person within the company who receives people to work together to reach quality
the work of another and adds his improvement. People who work on their
contribution to the product or service own or in a small group often have a
before passing it on to someone else. It is compartmentalized picture of their
essential to attain a successful internal organization and the work that it does.
working relationship in order to satisfy the They are quite strange with the work done
needs of the external customer. If the even by people who are in their vicinity.
internal customers' requirements are Consequently, they are unacquainted of the
agreed and met, a chain of quality is built results of the poor quality of their work.
that reaches out to the external customer. Bringing people together within teams with
Whether an organization supplies products the common goal of quality improvement
or services, the people it supplies internally aids communication between people,
are as real as its external customers. departments and functional activities.
Therefore, they also require speed, Teamwork gradually breaks down the
efficiency and accuracy. That's why the idea communication barriers and acts as a
of the internal customer can be used as a platform of change. Teamwork also enables
highlight for improvement. a group of people to work as a task force as
seen in cross-functional teams, committees
3. All work is process - Another possible and others which look at cross-functional
focal point of improvement is that of problems, solving problems and identifying
business processes. A process is a and adopting new ways of doing things. In
combination of methods, materials, this connection, quality circles and quality
manpower and machines that work improvement tools facilitate team-building
collectively to produce a product or service. processes in organizations.
All processes include natural variability and 6. People make quality -Most of the quality
one approach to quality improvement is to problems within an organization are not
progressively reduce variation. First, this usually within the control of an individual
can be done by removing variation due to employee. The system often comes in the
special causes and secondly by driving way of employees who are trying to do a
down the common cause of variation, thus good job. In such a situation, motivation by
bringing the process under control and itself cannot work. Therefore, managers are
improving the capability. required to ensure that all necessary is
prepared to let people to produce quality.
4. Measurement - In order to improve, one This creates an environment where people
must first measure one's present are eager to take responsibility for the
performance. This will help one focus both quality of their own work. Releasing the
on satisfying internal customers and talents of everyone within the organization
meeting the requirements of external in this way can generate a culture for
customers. There are seven generic ways in quality improvement.
which the quality of outputs can be 7. Continuous improvement cycle - The
measured: continuous cycle of instituting customer
requirements, meeting and measuring
a. Defects-work not up to specification them, measuring success and continuing
b. Rework-work requiring correction the improvement can be used both
c. Scrap-work thrown away externally and internally to stimulate
d. Lost items-work done again quality improvements. The continuous
e. Backlogs-work behind schedule improvement cycle used over and over
f. Late deliveries-work after agreed time again will lead to a fresh "chemistry" within
g. Surplus items-work not required the organization so that the culture starts
to change to one of continuous
5. Synergy in teamwork - The idea of improvement.
synergy in teamwork, where the whole is
greater than the sum of the parts, is a key 8. Prevention - At the heart of TQM is the
concept in TQM. Here, it is used to promote conviction that it is possible to achieve
collaboration, consensus, "creative conflict" defect-free work most of the time. This is
and team winning. One of the strengths of termed "right first time, every time" or zero
using teams for TQM is that they can merge defects. The "right first time, every time" or
the mutually restricted individual qualities zero defects policy is the results of an
needed for running business today. emphasis on prevention, and the diligent
Teamwork can provide opportunities for use of measurement, process controls and
the data-driven elimination of waste and Traditional management styles are all
error. It serves as a goal for continuous essentially management by results.
improvement. Prevention is the goal of all Managers feel justified in letting quality
quality assurance. Through planned and standards slip, adjusting output to meet
systematic action such as documentation of quotas, and generally forfeiting the right
work processes or cost of quality audits, production standards and procedures to
quality assurance prevents quality pander to results. This management style is
problems. predicated on the "ends justify the means"
philosophy. This "charade of conformance"
Benefits of TQM fosters dishonesty and a juggling of the
There are many benefits of TQM. facts.
Essentially, TQM refers to the total quality Quality-focused management is predicated
in fulfilling the needs of the customers, the instead on the quality of the product and
quality of the products-and the quality of the satisfaction of the customer. In this
life. Having these focuses leads to better style, the goal is to produce an extremely
business results and also benefits business high-quality product without cutting corners
in several different ways. Here are some on quality and without pandering to profits.
benefits of TQM: This is a radical departure from traditional
1. Creates a good corporate culture - TQM styles,
is an approach where the customer is the which applaud profits above quality and
center point of the business rather than the virtually every other consideration. In
department. Therefore, quality is quality-focused management, profits
transformed from an issue of the improve because the product is better and
production department to a strategic the customer is willing to pay for it. This
business entity to meet global challenges. type of management requires detailed
The TQM philosophy revolves around quality measurement and observance to
developing a culture that supports total consistent quality standards, since any drop
commitment to customer satisfaction in quality will be detected by customers
through continuous improvement. and will weaken the success of this style.
Changing from a traditional style to a
2. Better reviews from customers - Another quality-focused style of management
benefit of TQM is that customers and requires re-education of managers to
clients are highly satisfied with the become leaders instead of bosses as well
performance. Given the quality assurance as clear communication of the company's
testing procedures, the products of the quality vision. The quality goal must be
company will constantly meet the championed by everyone, beginning from
requirements and needs of clients and the top down to the lowest worker. The
customers. Therefore, the customers stay alteration to a quality-focused style forces
with the company longer, deepen their sweeping changes in every aspect of a
relationship with the company and company's management from the selection
demonstrate less price sensitivity while of personnel to the function of teams within
recommending the company's products or the company, but the end result is a better-
services to others. Customer satisfaction quality product, a pleased customer, and a
and high-performance results also possibly company that operates with greater
lead to high reviews in different integrity.
publications and newspapers which further Total quality management has changed the
enhances the image of the company and in traditional management style forever. It
turn that of the business. was a very essential movement those days.
Some of these changes are essential even
3. Better performance from employees - today. Few of these changes are discussed
Through TQM, there is often more attention below.
placed on meeting the needs of the 1. Traditional way of management focused
employees or internal customers. The on internal activities. Quality had a
training given to the employees as part of meaning which was totally internally
the program can boost employee morale at defined. Products or services provided
the workplace resulting in employees by organization were assumed to be good
working harder to achieve the goals of in quality, if this organization
TQM. has done its best in producing that product
SHIFTING FROM TRADITIONAL or service. But in total quality
MANAGEMENT TO TQM
management, focus is the customer. So key business processes, leading to strong
that final decider of the quality is the horizontal coordination and greater
customer. Fitting to the customer flexibility in responding to changes in
requirement was the least requirement environment. Because work is originated
while around processes rather than function,
delighting them is the ultimate goal. reengineering often involves a shift to
2. Traditionally people thought bad quality horizontal structure based on teams.
products are due to the workers who do not Reengineering basically means starting
perform their job properly. One of the major over—throwing out all the thinking of how
differences between total quality work was done and deciding how it can
management and traditional management best be done now. It entails identifying
style is the assignment of the responsibility customer needs and them crafting how it
of the quality to the management. can best be done now. It requires
Especially responsibility identifying customer needs then designing
of the quality goes into the middle level processes and supporting people to meet
management in the operational level. those needs.
Business Process Reengineering is a
3. Total quality management is an dramatic change initiative that contains
organization wide movement. All the five major steps that managers should
organization has to be in agreement to take:
apply TQM principles. Total quality ● Refocus company values on
management, unlike traditional customer needs
management calls for high amount of team ● Redesign core processes, often using
working. Team building, especially cross information technology to enable
functional teams is feature of TQM. These improvements
teams will present the necessary thrust to ● Reorganize a business into cross-
the implementation process and will push functional teams with end-to-end
the system forward, with very less struggle. responsibility for a process
● Rethink basic organizational and
4. TQM believes in quality assurance people issues
rather than checking. Quality is inbuilt to ● Improve business processes across
the system, so that products are assured to the organization
be in good quality. Some decision like
narrowing down the supplier base is total Banks and insurance companies,
quality management concepts used for this manufacturing and mining companies, and
purpose, which is revolutionary still today. service companies throughout the world, all
have achieved breakthroughs in speed,
5. Unlike in traditional management flexibility, innovation and quality through
style, total quality management makes reengineering.
decisions on facts and figures. Therefore, It is very important to understand that
problems are identified properly. Therefore, reengineering is not a disconnect discipline.
solutions are well planned. It is, in fact, a subset of TQM. The essential
difference between (Business Process)
6. TQM depends on cyclic thinking. Reengineering and TQM is that
Also, it is continuous. Therefore, reengineering aims at quantum gains on
improvements are small, stable and the order of 30% to 50% or more, whereas
continuous in nature. This is also known as TQM programs stress incremental progress,
Kaizen. These events are used in striving for inch-by-inch gains again and
teambuilding, brain storming and decision again.
making. There are many other differences The two approaches to improve
between the old or the traditional way of performance are not mutually exclusive; it
management to the total quality makes sense to use them in tandem.
management. In the bigger picture, TQM Reengineering can be used to first produce
has basically changed the culture and the good basic design that dramatically
thinking patterns of the organization. improves a business process. Total quality
programs can be used to work out bugs,
TQM AND REENGINEERING perfect the processes, and gradually
Reengineering sometimes called Business improve both efficiency and effectiveness.
Process Reengineering (BPR), involves a
complete rethinking and transformation of
Similarity and Difference between sound and that all it needs is some
Reengineering and TQM improvement or enhancement. But if the
Some people have said that both TQM and world has changed dramatically since the
Reengineering are the same, while others process was first (or most recently)
have argued that they are incompatible. designed, the current design may be
Michael Hammer argues that the two incompetent of delivering the necessary
concepts are compatible and actually performance. Reengineering is then
complement each other. Both concepts essential.
have the same focus — customer
satisfaction. Table 1. Reengineering vs TQM
TQM has contributed the concept of
teamwork, worker participation and TQM is the way of achieving the objective
empowerment, cross-functionality, process of "total quality". The techniques used for
analysis and measurement, supplier continuous improvement and process
involvement and benchmarking. Also, TQM reengineering are the tools of TQM. In
has emphasized the need for a "total" view Japan, continuous improvement is referred
of the organizations in its approach to to as Kaizen. This is incremental, gradual
problem solving. TQM has also influenced and continuous improvement. According to
company culture and values by exposing Masaaki Imai, who coined the term,
organizations to the need for change. "Kaizen" means improvement. It means
TQM has advocated continuous and continuous improvement involving
incremental improvement of processes everyone, both managers and workers.
(Kaizen) whereas reengineering is about Kaizen strategy maintains and improves the
radical discontinuous change (breakthrough working standard through small gradual
improvement) through process innovation. improvements. In general, improvement
TQM and reengineering fit together over can be defined as Kaizen and innovation.
time in the life of a process (see Figure 3). Kaizen means gradual, incremental,
continuous improvement. Innovation calls
First, the process is enhanced until its for the radical improvements as a result of
useful life time is over, at which point it is large investments in technology and/or
reengineered. Then enhancement is equipment. But the modern approach to
resumed and the entire cycle repeats total quality management includes both
again. Hammer points out that this is not a incremental and breakthrough
once-in-a-life time endeavor. As business improvements under the term "continuous
circumstances change in major ways, so improvement".
must process design.

When reengineering is implemented, the

objective of total quality must always be
foremost to ensure success. Otherwise,
The differences that have been identified implementation can be costly and still not
may generate an idea that reengineering is yield acceptable or long-term results.
outside the area of quality management. Process reengineering emphasizes radically
Hammer, the reengineering guru, together changing to the existing processes under
with quality gurus such as Deming and the assumption that those changes will
Juran, all agree that innovation and break- definitely improve the firm's global
through in processes are indispensable performance or the performance of one of
parts of quality management. TQM its specific processes.
assumes that the design of the process is However, to be effective, a firm's internal
organization and processes should be
directly and formally linked to enhancing Performance consists of the primary
profitability through the fulfillment of its operating characteristics of a product. For
customers' needs. If this relationship is an automobile, performance would include
correctly and explicitly established right traits like acceleration, handling, cruising
from the beginning, then reengineering can speed, and comfort; for a television set,
be one of the best tools to achieve total performance means sound and picture
quality and it will significantly improve the clarity, and the ability to receive distant
performance of a firm. stations.

STRATEGIC DIMENSION OF QUALITY This dimension of quality involves

In business, engineering, and quantifiable attributes, so brands can
manufacturing, quality has a pragmatic typically, be ranked objectively on
interpretation as the non-inferiority or individual aspects of performance. Overall
superiority of something; it's also defined performance rankings, however, are harder
as being suitable for its intended (fitness to develop, particularly when they
for purpose) while satisfying customer entail benefits that not all consumers
expectations. Quality is a perceptual, require.
conditional, and somewhat subjective Performance is regularly a basis of
attribute and may be understood differently disagreement between customers and
by different people. Consumers may focus suppliers, predominantly when deliverables
on the specification quality of a are not sufficiently described within
product/service, or how it compares to specifications. The performance of a
competitors in the marketplace. Producers product frequently controls the profitability
might measure the conformance quality, or or status of the end-user. As such, many
degree to which the product/service was contracts per specifications take in
produced correctly. Support personnel may damages associated to poor performance.
measure quality in the degree that a The issue of whether performance
product is reliable, maintainable, or differences are quality differences may be
sustainable. based on circumstantial preferences.
However, preferences are based on
Quality is multidimensional. Product and functional requirements, not taste. Some
service quality are comprised of a number performance standards are founded on
of dimensions which, determine how personal preferences, but the preferences
customer requirements are achieved. are so universal that they have the force of
Therefore, it is essential that companies an objective standard.
consider the entire dimension that may be
important to their customers. Evaluating all 2. Features (What does the product do?)
dimensions of a product or service helps to Features are added characteristics that
determine how well the service is given boost the attraction of the product or
against meeting the customer service to the user. They are all the
requirements. qualities and characteristics of a product
like its size, shape, materials, and its
DIMENSIONS OF PRODUCT QUALITY functionalities and capabilities. Some
examples of features include free drinks on
At a strategic level there are eight a plane, permanent-press cycles on a
dimensions of product quality management washing machine, and automatic tuners on
that can be used to evaluate quality a color television set. Features are often a
characteristics. David Garvin of the Harvard secondary aspect of performance. Features
Business School developed a system of are the "bells and whistles" of products and
thinking about quality of products. Some of services, those characteristics that add
the dimensions are mutually reinforcing, values to their basic functioning. The line
whereas others are not which means separating primary performance
improvement in one may be at the cost of characteristics from secondary features is
others. Understanding the trade-offs often not easy to illustrate. Features of a
preferred by customers among these products that are mentioned most are the
dimensions can help build a competitive qualities that make the product saleable or
advantage. that make it stand out from its competitors
such as it is longer-lasting or more durable,
1. Performance (Will the product do the it is cheaper to operate, it is made of higher
intended job?) quality materials or it is better built, it has a
special function that its competitors do not, unit of time. It is often denoted by the
and so forth. Greek letter A (lambda). The failure rate of
a system usually depends on time, with the
3. Reliability (How often does the product rate varying over the life cycle of the
fail?) system. For example, an automobile's
Reliability is the likelihood that a product failure rate in its fifth year of service may
will not fail inside a particular time period. be many times greater than its failure rate
This is a key element for users who need during its first year of service. One does not
the product to work with no expect to replace an exhaust pipe, overhaul
failures. This dimension reflects the the brakes, or have major transmission
likelihood of a product malfunctioning or problems in a new vehicle. Failure rates are
failing within a specified time period. important factors in the insurance, finance,
Reliability normally becomes more commerce and regulatory industries and
significant to consumers as downtime and fundamental to the design of safe systems
maintenance become more expensive. in a wide variety of applications.
Farmers, for instance, are especially
sensitive to downtime during the short Failure rate = Number of failures/number of
harvest season. Reliable equipment can units tested X total length of time
mean the difference between a good year
and spoiled crops. However, consumers on 4. Conformance (Is the product made
other markets are more familiar than ever exactly as the designer intended?)
to product reliability too. Computers and Conformance depicts to what extent a
copying machines certainly compare on product's design and operating
reliability. characteristics meet established standards.
This dimension owes the most to the
Reliability may be directly connected to traditional approaches to quality pioneered
performance. A reliability deficiency will by experts like Juran.
eventually lead to impaired or lost All products and services involve
performance, compromised safety and the specifications of some sort. When products
need for restorative actions like diagnosis, are developed, these specifications are set
repair, spare replenishment and and a target is set, for instance the
maintenance. High reliability products will materials used or the dimension of the
operate longer, allowing resources to be product. Not only the target but also the
focused on improving performance. tolerance (the range of permitted deviation
Reliability addresses the probability of a from the target) is defined. One problem
product or service. Among the most with this approach is that there is little
common measures of reliability are the interest in whether the specifications have
mean time between failures, and the failure been met exactly as long as the tolerance
rate per unit time. Since these measures limits are met.
necessitate a product to be in use for a
specified period, they are more relevant to On the one hand, this can lead to the so-
durable goods than to products and called "tolerance stack-up". When two or
services that are consumed instantly. more parts are to be fit together, the size of
Mean time between failures (MTBF) is their tolerances often determines how well
literally the average time elapsed from one they will match. Should one part fall at a
failure to the next. Usually, people think of lower limit of its specification and a
it as the average time that something matching part at its upper limit, a tight fit is
works until it fails and needs to be repaired unlikely. The link is likely to wear more
(again). For instance, the MTBF for a quickly.
particular type of automatic nozzle on gas
pumps might be 18 months. This means
that on the average, a failure will occur
every 18 months. The MTBF is beneficial in
creating preventive maintenance policies.

Mean Time between Failures = (Total up

time) / (number of breakdowns)

Failure rate is the frequency with which a

component fails, expressed in failures per
 impossible. In other cases, consumers must
weigh the expected cost, in both pesos and
personal inconvenience, of future repairs
against the investment and operating
expenses of a newer, more reliable model.
This approach to durability has two
important implications. First, it suggests
that durability and reliability are closely
linked. A product that often fails is likely to
be scrapped earlier than one that is more
reliable. Repair costs will be
correspondingly higher and the purchase of
a competitive brand will look that much
more desirable. Second, this approach
This problem can be addressed by taking a implies that durability figures should be
different approach to measuring interpreted with care. An increase in
quality. Instead of measuring a simple product life may not be the result of
conformance to specifications, the degree technical improvements or the use of
to which parts or products diverge from the longer-lived materials. Rather, the
ideal target is measured. Using this underlying economic environment simply
approach, process 1 (See Figure 4) is better may have changed.
even though some items fall beyond Durability testing allows the assessment of
specification limits. The traditional a product's response to the physical and
approach would have favored process 2 climatic hazards that may occur throughout
because it produces more items within the the operational life of the product. This
specification limit. It was demonstrated that testing provides recognition of compliance,
the problem of "tolerance stack-up" is analysis and resolution of damage issues,
worse when the dimensions of parts are and assurance of reliability and durability.
more distant from the target than when There three types of durability testing
they cluster around it, even if some parts which are:
fall outside the tolerance. This approach
requires a fresh look at the common 1. Vibration testing - In vibration
process quality factor of "defect rate", to testing, the vibration environment to which
take into account the fact that two parts products will be exposed to in real use is
may each pass the "tolerance test" reproduced. Products are tested in this
separately but be unusable when the environment to judge their durability or
attempt is made to join them together. In check for improvements. There are two
service businesses, measures of types of vibration testing;
conformance normally focus on accuracy a. Vibration Experiment - Vibration testing
and timeliness and include counts of that is used to test a sample or
processing errors, unanticipated delays and representative model of volume production.
other frequent mistakes. It is used to improve the product design.
5. Durability (How long does the product b. Vibration Stress Screening - All
last?) production products are tested to eliminate
Durability is a measure of how much use a faulty units and approved good units. It
person gets from a product before it breaks may be compulsory in certain industries.
down to such a point that replacement
makes more sense than continual repair. It Vibration Testing in a CAR
measures the length of a product's life.
When the product can be repaired, Vibration is inseparable from a car's
estimating durability is more complicated. motion. There is a lot of influence from
The item will be used until it is no longer vibration in long term driving and off-road
economical to operate it. This happens driving. Observation for durability and
when the repair rate and the associated influence of vibration is an important
costs increase significantly. Technically, process to obtain the reliability of products.
durability can be defined as the amount of All of the possible environments that a car
use one gets from a product before it will experience in its lifetime are
deteriorates. After so many hours of use, reproduced during vibration testing.
the filament of a light bulb burns up and Investigations occur for vibration damping
the bulb must be replaced. Repair is and, motion characteristics of the tire, car
frame and car body. Investigation also to correct outstanding problems. In those
occurs into the influence of vibration on car cases where problems are not right away
electronics, such as radios and stereos. resolved and complaints are filed, a
Also, simulation testing of vehicle seats and company's complaint handling procedures
safety devices is performed. are also possible to affect customer's final
assessment of product and service quality.
2. Shock tests - Shock testing replicates Some variables of serviceability reflect
events to determine if structures can differing personal standards of acceptable
withstand sudden applied forces. Shocks service. Others can be measured quite
are characterized by their short duration objectively. Customers may continue to be
and sudden occurrence. displeased even after completion of repairs.
How these complaints are managed is
3. Climatic testing - Materials can essential to a company's reputation for
deteriorate over time, ageing prematurely quality and service. Ultimately, profitability
due is likely to be affected as well. Companies
to either high or low temperature extremes, vary extensively in their techniques to
while humid conditions may lead to complaint handling and in the value, they
condensation which can be damaging to attach to this element of serviceability.
biological items, industrial products, Some do their best to resolve complaints;
materials, and electronic devices and others use legal tricks, the silent treatment
components. A climatic test makes use of and similar strategies to refuse displeased
an environmental test chamber which customers. For instance, lately, General
artificially replicates the conditions under Electric, Procter & Gamble and other
which machinery, materials, devices or companies have sought to prevent
components might be exposed. It is also consumer discontent by installing toll-free
used to accelerate the effects of exposure telephone hot lines to their customer
to the environment, sometimes at relations departments.
conditions not actually expected. Important attributes for serviceability
dimension in a car include service
warranty, parts warranty, parts availability,
number of reasonable distance to dealer
service centers, distance to service parts
center-dealer, distance to service parts
center individual, length of wait for service
appointment, schedule of preventive
maintenance, employees listen to
customers, information regarding repairs,
courteous service centers, repaired
6. Serviceability (How easy is it to repair correctly first time, service time relative to
the product?) other dealers, warranty claims handled
Serviceability involves the consumer's ease without argument, average repair cost/
of obtaining repair service like access to year, extended warranty, underestimation
service centers and/or ease of self-service; of service cost and provision of loan.
the responsiveness of service personnel like
the ease of getting an appointment and 7. Aesthetics (What does the product look
willingness of repair personnel to listen to like?)
the customer; and the reliability of service Aesthetics means how a product looks,
like whether the service is performed right feels, sounds, tastes, or smells. It is
the first time. Competence and ease of obviously an issue of personal judgment
repair is the speed with which the product and an indication of individual preferences.
can be put into service when it breaks Though, there emerge to be some patterns
down, as well as the competence and the in consumers' rankings of products with
behavior of the service personnel. taste as the starting point. High quality was
Consumers are concerned not simply about most often associated with "rich and full
a product breaking down but also about the flavor, tastes natural, tastes fresh, good
time before service is brought back, the aroma, and looks appetizing". Aesthetics
timeliness with which service appointment also refers to the "outside" feel of the
are reserved, the nature of transactions product. The aesthetics dimension differs
with service personnel, and the frequency from subjective criteria pertaining to
with which service calls or repairs fall short "performance" in that aesthetic choices are
not nearly universal. Not all people prefer
"rich and full" flavor or even agree on what 1. Tangibles
that means. Companies therefore have to The tangible dimension of quality is
search for a niche. On this dimension of associated to the environment in which the
quality, it is impossible to please everyone. service is rendered to the customers. This is
The aesthetic properties of a product add to the equivalent of physical
a company's or brand's identity. Faults or characteristics of quality of goods. Since
defects in a product that weaken its services are tangible, customers draw from
aesthetic properties, even those that do not their perception of service quality by
lessen or change other dimensions of comparing the tangible associated with
quality, are often causing for negative these services provided. It consists of the
response. appearance of the physical characteristics
of facilities, equipment, consumable goods
8. Perceived Quality. (What is the reputation and personnel used in or related with the
of the company or its product?) service rendered.
Perceived quality is the individuals' In a Starbucks restaurant for instance, it
subjective appraisal of product's or may be seating arrangement, interior
service's attributes; indirect measures may decoration, ambiance and lighting
be their only basis for comparing brands. arrangement. However here also the
Consumers do not always have quality is assessed not by some
comprehensive information about a standardized specifications in terms of
product's or service's attributes. A product's physical characteristic, but by the impact
durability, for instance can rarely be these physical characteristics have on
observed openly and is usually must be customer assessment of the service quality.
inferred from various tangible and
intangible aspects of the product. In such 2. Reliability
situation, images, advertising, and brand Reliability is the ability to perform the
names can be vital. Perception is not promised service dependably and
always reality. Sometimes customers accurately to customers on specific service.
perceived products and services as they It is all about what is promised about
see them in advertising. Reputation is the delivery, service provision, problem
primary stuff of perceived quality. Its power resolutions and pricing and what is
comes from an implicit comparison that the delivered. Like, Cebu Pacific airline in the
quality of products today is analogous to Philippines has proved to be most
the quality of products of yesterday, or the successful low-cost carrier in the world with
quality of goods in a new product line is fun-filled air travel.
similar to the quality of a company's Customers would like to carry out business
established products. with companies that keep their promises,
chiefly their promises about the service
outcomes and core service attributes. All
DIMENSIONS OF SERVICE QUALITY companies need to be conscious of
customer anticipation of reliability. Firms
Service is normally described as an that do not grant the core service that
experience felt by the consumer. In a customers think they are buying displeased
restaurant for instance, the way the their customers in the most direct way. Say
customer is treated is considered as a for instance in a hotel where the basic
service. Services are frequently intangible quality of room decor, food, and facilities
in nature. The quality of service is must be provided.
evaluated by how well the customer is
contented with the service. Service quality
is about comparing performance with the 3. Responsiveness
customer expectations. Service quality also Responsiveness is the willingness to help
leads to customer contentment and customers and provide prompt service. This
interrelated. The key to preserve customers dimension emphasizes attentiveness and
is to be aware of their needs and fulfill promptness in dealing with customer's
those needs. Making customers purchase requests, questions, complaints and
the services continually need focus on problems. Responsiveness is communicated
dimensions of service quality. There are five to customers by span of time they have to
dimensions of service quality and specified hang around for help, answers to questions
below: or attention to problems. Responsiveness
also captures the impression of flexibility is the companies' duties to their maximum
and ability to tailor the service to customer to meet the demands of customers, else
needs. customers who do not receive individual
The willingness to help the customer attention will search elsewhere.
promptly in case of special and unforeseen This is being able to understand the needs
requirements is another way of showing of the customer as an individual and
responsiveness. Helping a customer for meet the special requirements of the
instance who falls sick when staying in the customer. This is more about customizing
hotel is a good example of responsiveness. the service and the general service
provider behavior for each customer, rather
4. Assurance than providing a uniform high-quality
Assurance is defined as employees' treatment to all. Many companies try to
knowledge of courtesy and the ability of the create this sense of empathy by employing
firm and its employees to inspire trust and tactics like addressing each customer
confidence. This dimension of service by name. However, true empathy means
quality is connected to the competence of understanding the special characteristics
the service employee. The employees must and needs of individual customer, and
be competent to gain the trust of modifying service to them accordingly.
customers. Considering the above dimensions of
This dimension is likely to be predominantly service quality, comparisons are made
significant for the services that the between actual service performance and
customers perceive as involving high rising expectations of customers. The difference
and/or about which they feel uncertain between customers' expectations and
about the ability to evaluate. Trust and actual delivery (perception) at the time-of-
confidence may be embodied in the person service performance is known as service
who relates the customer to the company, quality gap. Organization conducts survey
like the marketing department. Thus, and exploratory research to study the
employees are aware of the value to create various service gaps, so as to understand
trust and confidence from the customers to why the gap arises and how it can be
gain competitive advantage and for reduced.
customers' loyalty. For instance, the
customer dining in a restaurant may not be
able to openly assess the level of
cleanliness maintained by the restaurants.
Here it is not only imperative to really
provide germ-free food but also to stir
confidence that the food is clean. The
assurance is about giving the customer
peace of mind that everything will be taken
care of as necessary, rather than just
actually taking care when the need
happens. For example, a doctor with Master
degree may inspire more assurance than a
doctor with just an MD degree, although the
basic treatment provided by them may be
of same quality.

5. Empathy
Empathy refers to caring attitude that an Module 2
organization provides toward Gurus of Total Quality Management
customer. This dimension of service quality In order to fully understand the TQM
calls for individual attention to movement, there are philosophies of
customer, so as to make them feel notable individuals who have shaped the
exceptional and to show to the customer evolution of TQM. Their qualitative and
that the company does best to satisfy his quantitative contributions have been
needs. Empathy is an additional plus that critical in the emergence and development
the trust and confidence of the customers of contemporary knowledge regarding
and at the same time increase the loyalty. quality. Their common thrust is towards the
In this competitive world, the customer's concept of continuous improvement of
requirements are rising day after day and it every output, whether a product or service
by removing unwanted variation and continuous improvement. He is cautious in
improving underlying work processes. Their defining quality and characterizes the
philosophies and teachings have difficulty of achieving it. "The difficulty in
contributed to the knowledge and defining quality is to translate future needs
understanding of quality. of the user into measurable characteristics
by using statistical approach, so that a
DR. WILLIAM EDWARDS DEMING (14th product can be designed and turned out to
October, 1900- 20th December 1993) give satisfaction at a price that the user will
Dr. William Edwards Deming is often have to pay".
referred to as the "Father of Quality Deming's 14 Point Methodology
Control." Deming is best known for
initiating a transformation in the Japanese 1. Constancy of purpose - Create firmness
manufacturing sector in the after effects of of purpose for continual improvement
World War II, which enabled it to become a of products and service and distribute
big player in the world market. The Deming resources to accommodate long term needs
Prize, the highest award for quality .in rather than short-term profitability with a
Japan, is named in his honor. He is also plan to become competitive, stay in
known for his 14 points, for the Deming business and provide jobs.
Chain Reaction and for the Theory of 2. The new philosophy - Espouse the new
Profound Knowledge. He also modified the philosophy for one can no longer allow
Shewhart PDSA (plan, do, study, act) cycle delays, mistakes and faulty workmanship.
to what is now referred to as Deming Cycle Transformation of the Western
(plan, do, check, act). Deming does not management style is necessary to bring to
define quality in a distinct phrase. He said an end the continued decline in the
that only the customer can define the industry.
quality of any product or service. Quality is
a relative term that will adjust in meaning 3. Cease dependence on inspection -
based on the customer's needs. Deming Remove the need for mass inspection as a
approach to TQM is mainly concentrated on technique to attain quality by building
the creation of an organizational system quality into the product in the first
that is based on cooperation and learning place. Insist statistical evidence of built-in
for facilitating the implementation of quality in both manufacturing and
process management practices, which, in purchasing functions.
turn, leads to continuous improvement of 4. End lowest tender contracts - Reduce
processes, products, and services as well as total cost. Many companies and
to employee fulfillment, both of which are organizations grant contracts to the lowest
critical to customer satisfaction, and bidder as long as they meet certain
ultimately, to firm survival. Deming requirements. However, low bids do not
stressed the responsibilities of top promise quality. Unless the quality
management to be the leader in changing . aspect is carefully thought of, the effective
processes and systems. He said that price per unit that a company
leadership plays an important role in pays its vendors may be understated and,
ascertaining the success of quality in some cases, indefinite. Deming
management. It is the top management's advised businesses to utilize single-
responsibility to create and communicate a sourcing for long-term relationships with
vision to move the firm toward continuous a few suppliers leading to loyalty and
improvement. Top management is in charge opportunities for shared improvement.
for most quality problems. Top
management should give employees clear Using several suppliers has been long
standards for what is considered acceptable acceptable for reasons like providing
work, and provide the methods to achieve protection against strikes or natural
it. These methods include an appropriate disasters or making the suppliers compete
working environment. against each other on cost. However, this
Deming also emphasized the importance of approach has overlooked hidden costs like
identification and measurement of increased travel to visit suppliers, loss of
customer requirements, creation of supplier volume discounts, increased set-up charges
partnership, use of functional teams to resulting in higher unit costs, and increased
identify and solve quality problems, inventory and administrative expenses. In
enhancement of employee skills, addition, always changing suppliers only on
participation of employees, and pursuit of the base of price increases the deviation in
the material supplied to production, since work effectively. There is a financial loss
each supplier's process is different. related with fear in an organization.
Employees strive to satisfy their superiors
5. Improve every process - Management's because they believe that they might lose
job is to constantly make better the system their jobs. They are cautious to ask
with contribution from workers and questions about their jobs, production
management. Deming was a follower of methods, and process parameters. If a
Walter A. Shewhart, the developer of supervisor or manager reflects the feeling
control charts and the continuous cycle of that asking such questions is a squander of
process improvement known as the time, then employees will be more focused
Shewhart cycle. Deming popularized the about satisfying their supervisors than
Shewhart Cycle as the Plan-Do-Check-Act meeting long-term goals of the
(PDCA) or Plan-Do-Study-Act (PDSA) cycle. organization. For that reason, creating an
Therefore, it is also often referred to as the environment of trust is a significant task of
Deming cycle. In the planning stage, management.
chances for improvement are
acknowledged and operationally defined. 9. Break down barriers - People should work
The theory and course of action developed cooperatively with reciprocal trust, respect,
in the earlier stage is tested in the doing and appreciation for the needs of others in
stage, on a small range through performing their work. Internal and external
trial runs in a laboratory or prototype organizational barriers hamper the flow of
setting. The results of the testing phase are information, put off entities from perceiving
examined in the check/study stage using organizational goals, and encourage the
statistical methods. In the action stage, a quest of subunit goals that are not
decision is prepared about the essentially align with the organizational
implementation of the proposed plan. If the goals. Barriers between organizational
results were encouraging in the pilot stage, levels and departments are internal
then the plan will be implemented. Or else barriers. External barriers are between the
alternative plans are developed. After company and its suppliers, customers,
complete scale implementation, customer investors, and community. Barriers can be
and process feedback will once more be removed using better communication,
taken and the process of continuous cross-functional teams, and changing
improvement continues. attitudes and cultures.
10. Eliminate exhortations - Do away with
6. Institute training on the job - Introduce use of slogans, posters and exhortations
up to date methods of training on the demanding zero defects and new level of
job, incorporating management to make productivity from the workforce, with no
greatest use of all employees. Fresh skills commensurate methods provided. Such
are essential to sustain changes in exhortations only form adversarial
materials, methods, product design, relationships. The volume of the cases of
machinery, techniques and service. low quality and low productivity belong to
the system; thus, lie outside the power of
7. Institute leadership - Espouse and the workforce.
introduce leadership, aimed at helping 11. Eliminate arbitrary numerical targets
people Remove work standards that stipulate
carry out a better job. The responsibility of numerical quotas for the workforce and the
managers and supervisors must be altered numerical goals for people in the
to highlight on quality rather than quantity. management. Replace these with aids and
This will automatically increase productivity. useful supervision and employ statistical
The management has to make sure that methods for continual improvement of
urgent action is taken on reports of quality and productivity.
inherited defects, maintenance 12. Permit pride of workmanship - Eliminate
requirements, poor tools, fussy operational the barriers that steal from hourly workers
definitions and other conditions damaging and people in the management of their
to quality. rights to pride of workmanship. This implies
the eradication of the annual merit rating
8. Drive out fear -Build a fear-free and management by objectives. Again, the
environment where everyone can responsibility of managers, supervisors and
contribute and foremen must be changed from absolute
numbers of quality.
13. Encourage education - Deming's 6.Extreme medical costs.
philosophy is founded on long-term, 7. Too much costs of liability driven up by
continuous process improvement that lawyers who work on contingency
cannot be carried out without properly fees.
trained and motivated employees. This
point tackles the need for ongoing and PHILIP CROSBY (18th June, 1926 -18th
continuous education and self-improvement August, 2001)
for the whole organization. This educational Philip Crosby came to national prominence
investment serves the following objectives: with the publication of his book Quality is
a. it leads to better motivated employees; Free in 1979. He established the absolutes
b. it communicates the company goals to of quality management, which states that
the employees; the only performance standard is zero
c. it keeps the employees up-to-date on defects and the basic elements of
the latest techniques and supports improvement.
teamwork; While Crosby, like Deming and Juran
d. training and retraining offer a stresses on the importance of the
mechanism to ensure enough performance management's commitment and error-
as the job responsibilities change; and cause removal, some aspects of Crosby's
e. through increasing job loyalty, it lessens approach to quality are quite different from
the number of people who "job-hop. Deming's. Zero defects, the heart to
Crosby's philosophy, was censured by
14. Top management's commitment - A Deming as being directed at the wrong
clearly defined commitment by the top people and forming worker frustration and
management to constantly improve quality bitterness. Goal setting, vital to Crosby's
and productivity and strengthening of theory was also scorned for leading to
obligations to put into practice all these unhelpful accomplishment. The truth is that
principles is always advantageous to the Deming was most likely reacting to the
workforce and the organization. Form a wrong use of slogans and goals. Deming
structure in the top management whose may not have censured them if they had
main task will be to push these 13 points always been used correctly within the
continually and take action in order to Crosby system.
achieve the change. The essence of Crosby's teachings is
contained in what he calls the "four
Deming's 7 Deadly Diseases absolutes of quality."
1. The definition - Quality is conformance to
Deming's seven deadly diseases recap the requirements, not goodness.
factors that he believes can slow down the 2. The system - Prevention, not appraisal.
transformation that the fourteen points can 3. The performance standard - Zero
bring about. The seven deadly diseases defects.
are: 4. The measurement - The price of non-
1. Lack of constancy of purpose to plan conformance to requirements, not
products and services that have a market quality circles.
sufficient to keep the company in business Crosby defines quality as a means
and provide jobs. "conformance to requirements". Quality
2. Stress on short-term profit; short-term must be defined in quantifiable and clearly
thinking that is driven by a fear of stated terms to aid the organization
unfriendly takeover attempts and pressure take action based on feasible targets,
from bankers and shareholders to rather than experience, or opinions. For
generate dividends. Crosby, quality is either present or not
3. Personal review systems for managers present. There is no such thing as varying
and management by objectives with no levels of quality. Management must assess
methods or resources provided to achieve quality by continually tracking the cost of
objectives; includes performance doing things erroneously. Crosby calls this
evaluations, merit rating, and annual as the "price of nonconformance."
appraisals. The requirements of a product need to be
4. Job-hopping by managers. defined and specified clearly so that they
5. Using only evident data and information are correctly known. He emphasized that
in decision making with little or no higher quality lessens costs and increases
consideration given to what is unknown or profits. Quality is measured by the quality
cannot be known. cost. His categories of quality costs are
identical to those of Juran which are 9. Zero defects day - To produce an event
prevention, appraisal and failure. This that will allow all employee appreciate,
needs an accent on prevention rather than through a personal experience, that there
after-the-fact inspection. Crosby also has been change.
presents the quality management maturity 10.Goal. setting - To twist promises and
grid which contains five stages which are commitments into action by persuading
uncertainty, awakening, enlightenment, individuals to set up improvement goals for
wisdom, and certainty. These stages can be themselves and their groups.
employed to appraise progress in 11. Error-cause removal - To offer individual
management understanding and attitude, employees a way of communicating to the
the standing of quality in the organization, management, the situations that make it
problem treatment, cost of quality as a not easy for employees to fulfill the promise
fraction of sales, quality improvement to improve.
actions. 12. Recognition - To be thankful for those
who contribute.
1. Quality control must be essential part of
management13. Quality councils - To bring
collectively professionals in the realm of
quality for planned communication on a
customary basis with the workforce and
management alike.
14. Do it over again - To accentuate that
the quality improvement program never
ends.

Crosby claims "mistakes are caused by two

Based on these premises, he developed a factors: lack of knowledge and lack of
14-step methodology. attention". Education and training can
1. Management commitment - To make eradicate the first cause, and a personal
clear the management's position on quality. commitment to excellence (zero defects)
2. Quality improvement team - To carry out and attention to detail will cure the second.
the quality improvement program.
3. Quality measurement - To exhibit DR. JOSEPH MOSES JURAN (24thDecember,
existing and possible non-conformance 1904 -28th February, 2008)
problems in the way that permits objective Dr. Joseph Juran assisted the Japanese in
evaluation and remedial action. their reconstruction processes after World
4. Cost of quality - To identify the War II. Juran first became well-known in the
components of the cost of quality, and give US as the editor of the Quality Control
details on its application as a management Handbook (1951) and alter for his paper
tool. introducing the quality trilogies which are
5. Quality awareness - To give a method of quality planning, quality control and quality
elevating individual concern among improvement.
the personnel in the company towards the 1. Quality planning - This involves
conformance of the product and identifying the customers' needs and
service, and the status of the company on, expectations, proposing products and
the subject of quality. services, setting goals, giving training,
6. Corrective action - To offer a systematic implementation of projects, reporting,
method of deciding the problems recognizing, and communicating outcome
recognized through actions taken in the and improvements in systems.
past.
7. Zero defects planning - To study the 2. Quality control - This concerns creating
different activities that must be performed standards, naming measurements and
as groundwork for officially initiating the methods thereof, contrasting results with
zero defects program. actual standards and construing the
8. Supervisor training - To name the type of differences and taking action on
training that supervisors require to differences.
energetically perform their roles with
regard to the quality improvement 3. Quality improvement - This is about the
program. use of structured annual improvements
projects and plans, need of improvement,
organizing to guide the projects, detecting Like Deming, Juran believes most quality
the causes, giving and verifying remedies problems are due to management, not
and establishing control to keep up gains employees. He also states that the
made. distinction between constant and irregular
problems is essential because there are two
Questioning which aspect of the quality different approaches to handling the
trilogy is most vital is like asking "Which leg problems. Constant problems require the
of a stool is the most important?" The stool principle of "breakthrough", while irregular
cannot function effectively without all problems require the principle of "control".
three. Juran defined quality as "fitness for He further elaborates the sequence of
use" and also developed the idea of cost of activities required for "breakthrough" and
quality. While Deming's approach is radical "control". Breakthrough activities or quality
in nature, Juran's approach is more improvement include:
evolutionary. For Deming statistics is the 1. Breakthrough in attitudes - persuading
language of business while Juran says that those responsible that a change in quality
money is the language of business and level is advantageous and practical;
quality efforts must be communicated to
the management in their language. Juran 2. Discovery of the vital few projects -
concurs with Deming that more than 80% determining which quality problem areas
of defects are caused by the system rather are essential;
than the workers and lists motivation of 3. Organizing for breakthrough in
workers as a solution to quality problems. knowledge - defining the organizational
system for attaining the knowledge for
Juran propounded the following message on accomplishing a breakthrough;
quality:
1. Quality control must be essential part of 4. Formation of a steering arm - defining
management and staffing a system for directing
2. Quality is no mistake the study for quality improvement;
3. Quality must be planned 5. Formation of an investigative arm -
4. There are no shortcuts to quality defining and staffing a system for executing
5. Make use of problems as sources of the technical inquiry;
improvement
6. Diagnosis - collecting and examining the
Juran's formula consists of: facts necessary and proposing the action
1. Create an awareness about the need and desirable;
propose an opportunity for improvement 7. Breakthrough in cultural pattern -
2. Set goals for improvements determining the effect of an anticipated
3. Systematize paths to attain the goals change on the people involved and looking
(begin a quality council, identify for ways to rise above opposition to
problems, choose projects, assign teams, change;
delegate facilitators and so on) 8. Breakthrough in performance - getting
4. Give training agreement to take action;
5. Do projects to resolve problems 9. Transition to the new level - implement
6. Inform progress the change.
7. Provide recognition
8. Communicate outcome "Control" activities include:
9. Keep score
10. Uphold thrust by making yearly 1. Choosing the control subject which is
improvements component of the regular choosing what is intended to regulate;
systems and processes of the company 2. Choosing a unit of measure;
3. Setting a goal for the control subject;
In his view, the approach to managing for 4. Creating a sensor which can measure the
quality consists of: control subject in terms of the unit of
1. The irregular problem is detected and measure;
acted upon by the process of quality 5. Measuring real performance;
control; 6. Interpreting the difference between
2. The constant problem needs a special actual performance and the goal;
process, namely, quality improvement; 7. Taking action (if any) on the difference.
3. Such constant problems are traceable to
a poor-quality planning process. "Planning" activities include:
 By 1924, Shewhart determined the problem
1. Establish the quality goal of variability in terms of assignable cause
2. Identify customers and chance cause (Deming named this as
3. Discover customer needs common cause). On May 16, 1924,
4. Develop product features Shewhart prepared a message of less than
5. Develop process features one page in length and forwarded it to his
6. Establish process controls and transfer to manager, George Edwards. About 1/3 of the
operations page was devoted to a plain diagram that
DR. WALTER ANDREW SHEWHART (18th people would today recognize as a control
March, 1891 – llthMarch,1967) chart. This memorandum set forth the
essential principles and considerations that
Dr. Walter Shewhart the "Grandfather of became known as process quality control.
Quality Control" was a giant among giants Shewhart's principle was that bringing a
in the quality movement during the first process into a state of statistical control
half of the 20th century. His mentoring of would permit the distinction between
other engineers at Western Electric and his assignable (such as unskilled workers or
groundbreaking work with control charts equipment not being calibrated) and
arguably led a quality revolution and chance cause variations. Through keeping
launched the quality profession. the process in control, it would be likely to
Walter Andrew Shewhart was born to Anton forecast future output and to cheaply
and Esta Barney Shewhart on March 18, manage processes. This was the birth of
1891, in New Canton, IL. Shewhart died on the modern scientific study of process
March 11, 1967, in Troy Hills, New Jersey. control.
He received from the University of Illinois Shewhart developed what came to be
both bachelor's and master's degrees. In known as the Shewhart cycle: Plan-
1914, he married Edna Hart and moved to Do-Study-Act (PDSA) or Plan-Do-Check-Act
California where he earned his doctoral (PDCA) to manage the effects of variations.
degree in physics while studying as a He stressed that eliminating variability
Whiting Fellow at the University of improved quality. His work created the
California, Berkeley, in 1917. foundation for statistical process control
measures used today.
He had short stints of teaching at University
of Illinois, University of California at DR. ARMAND FEIGENBAUM (Born in 1922)
Berkeley, and La Crosse State Teachers
College (renamed Wisconsin State Armand Feigenbaum is given the credit to
University), but his academic career was the formation of the idea of total quality
brief. control in his book Quality Control-
In 1918, Shewhart joined the inspection Principles, Practice and Administration
engineering department of the Western (1961) and in his article Total Quality
Electric Co. in Hawthorne, IL. Western Control (1956). The Japanese version of this
Electric manufactured telephone hardware concept is called Company-wide Quality
for Bell Telephone Co. Although no one Control, while it is termed Total Quality
could have realized it at the time, Shewhart Management (TQM) in the United States
would alter the course of industrial history. and elsewhere. He was also the first to
Shewhart was part of a group of people classify quality costs as costs of prevention,
who were all destined to become famous in appraisal and internal and external failures.
their time. This group included Harold Feigenbaum philosophy is summed up in
Dodge and Harry Romig, known for their his Three Steps to Quality which has been
work on product sampling plans. George D. described as follows:
Edwards, who became the first president of 1. Quality leadership - This is apparent
the American Society for Quality Control when the management stresses on sound
(renamed American Society for Quality) in planning rather than reacting to failures.
1997, was Shewhart's supervisor. The management must maintain a constant
Shewhart mentored several during his focus and lead the quality effort.
tenure, including Joseph M. Juran. During
the summers of 1925 and 1926, W. 2. Modern quality technology - The
Edwards Deming worked as an intern at the traditional quality development processes
Hawthorne, IL, plant where he became cannot resolve 80%-90% of quality
interested in Shewhart's work. problems. This task involves integration of
office staff, engineers as well as the shop-
floor workers who continually assess and shipping, accounting, installation, and
apply latest techniques to satisfy customers service, and the rests, are involved in and
in the future. influence the attainment of quality.
Effective total quality control needs,
3. Organizational commitment - Continuous therefore, a high degree of functional
training and motivation of the whole integration. Furthermore, it guides the
workforce as well as a combination of synchronized actions of people, machines
quality in business planning stage indicates and information to attain quality goals. He
the significance of quality and offers the highlights a system approach to quality.
means for including it in all respects of the The stress is on the prevention of poor
organization's activities. quality rather than detecting it after the
event. He argues that quality is an integral
Feigenbaum 10 points on TQM include: part of the day-to-day work of the line, staff
and operatives of an organization. It cannot
1. Quality is consciousness programmed be effectively separated from other
not only a technical function. activities undertaken by employees and
2. Quality is not what an engineer or any attempt to do so more would than
marketer says but it is that what the likely result in substandard quality. He, like
customer speaks of. most other gurus, considers effective staff
3. Quality and cost are a sum, not training and education to be an essential
differences. component of TQM. He states that
4. Quality must be organized to identify education and training should address the
everybody's job in the organization three vital areas of quality attitudes, quality
5. Quality is a technique of managing an knowledge, and quality skills.
organization. Good management One of the more well-known concepts
means continuous stress on the quality. developed by Feigenbaum was that of the
6. The quality improvement highlighting "hidden plant". He maintained that within
must take place all through all activities of every company or factory a proportion of
the organization. the capacity was wasted by not getting it
7. Quality is realized through assistance right first time.
and contribution of each and every Quality control underlining that human
person related to the organization. It is also relation was a fundamental issue in quality
an ethic. control activities, and such things as
8. Continuous quality improvement needs statistics and preventive measures were
extensive range of new and existing quality only a fraction of the whole equation.
technology of information applications. Quality is what fits the customer at the
9. Total quality program approach leads to right price for both the provider and
productivity and is most effective and less customer and a common-sense approach to
capital intensive. quality standards, conformance, corrective
10. Quality comes, if it is clear, customer actions, and planning for improvement is
oriented, effective and structured. the control necessary to achieve that
quality. Through inspiring and pushing
Feigenbaum defines quality as the "total everybody in an organization to realize
composite product and service their responsibilities and potential effects
characteristics of marketing, engineering, on the quality of a product or service.
manufacture and maintenance through
which the product and service in use will PROF. KAORU ISHIKAWA (13th July, 1915 —
meet the expectations of the customer". He 16th April, 1989)
states that total quality management
covers the complete scope of the product Prof. Kaoru Ishikawa is the "Father of
and service "life cycle" from product Quality Circles" for his role in launching
conception through production and Japan's quality movement in 1960s. He is
customer service. The quality chain, he recognized with developing the idea of
argues, begins with the recognition of all company-wide quality control in Japan. He
customers' requirements and ends only established the use of quality circles and
when the product delivered or service is championed the use of quality tools to
rendered to the customer who stays know the root causes of problems. He
satisfied. Thus, all functional activities, such developed one of those tools, the cause-
as marketing, design, engineering, and-effect diagram, which is also known as
purchasing, manufacturing, inspection,
the Ishikawa diagram or the fishbone 8. Market is the entry and way out of
diagram. quality.

For Ishikawa quality is the "development, 9. Top management must not demonstrate
design, production and service of a product annoyance when facts are
that is most efficient, most helpful, and presented by subordinates.
constantly acceptable to the consumer". He 10. 99% of problems in a company can be
argues that quality control extends further resolved with easy tools for analysis
than the product and includes after-sales and problem-solving
service, the quality of management, the 11. Data without dispersion information
quality of individuals and the company (variability) are fake data.
itself. He advocates employee contribution
as the input to the successful Ishikawa's concept of total quality control
implementation of TQM. Quality circles, he contains six fundamental principles:
believes, are an essential medium to 1. Quality first - not short-term profits first.
achieve this. In his work, like all other 2. Customer orientation - not producer
gurus, he emphasizes the value of orientation.
education. He states that quality starts and 3. The next, step is your customer -
culminates with education. In his book breaking down the fence of sectionalism.
"What is Total Quality Control?" Ishikawa 4. Using facts and data to make
said that the seven basic tools were presentations - use of statistical methods
"indispensable for quality control". These 5. Reverence for humanity as a
tools are: management philosophy, full participatory
1. Process flow chart management.
2. Check sheet 6. Cross - functional management.
3. Histogram
4. Pareto chart GENICHI TAGUCHI (1st January, 1924 -2nd
5. Cause - effect diagram (Ishikawa June, 2012)
diagram)
6. Scatter diagram Dr. Taguchi was born in Japan and
7. Control chart completed his graduation in the subject of
Ishikawa believed that with these tools, Mechanical Engineering and obtained Ph.D.
managers and staff could deal with and in the year 1962. He is a Japanese quality
solve the quality problems facing them. expert known for his work in the area of
Ishikawa was the first quality guru to product design. He estimated that 80% of
accentuate the importance of the internal all defective items are caused by poor
customer, the next person in the production product design. Taguchi stressed that
process. Ishikawa emphasized on quality as companies needed to center their quality
a way of management. He influenced the efforts on the design stage, as it was much
development of participative, bottom-up less expensive and easier to make changes
view of quality which became the during this stage later in the production
trademark of the Japanese approach to process.
quality management. Some of the key Taguchi underlines an engineering
elements are: approach to quality. Taguchi defines quality
1. Quality starts with education and as the "loss imparted to the society from
culminates with education. the time a product is shipped". Examples of
2. The first step in quality is to know the loss include failure to reach ideal
customers' requirements. performance, failure to meet the
3. The perfect state of quality control customer's requirements, breakdowns, and
happens when inspection is no longer harmful side-effects caused by products.
compulsory. This simply means that the smaller the loss,
4. Take out the root cause, not the the more desirable the product. The key
symptoms. elements of Taguchi's quality concepts are
5. Quality control is the duty of all workers briefly stated below:
and all divisions. 1. Quality improvement should focus on
6. Do not mistake means with the reducing the variation of the product's
objectives. key performance characteristics about their
7. Set quality first and set your sights on target values.
long-term profits. 2. The loss suffered by a customer due to a
product's performance variation is often
just about proportional to the square of the Dr. Shingo Shigeo is the greatest
deviation of the performance contributor to modern manufacturing
characteristics from its target value. practices. While his name has modest
3. The ultimate quality and cost of recognition in the western hemisphere, his
manufactured products are determined to a teaching! and principles have formed the
great extent by the engineering design of backbone of efficient engineering practices.
the product and the manufacturing process. In applying his experience and expertise in
4. A product's or process's performance the field of industrial engineering, Dr.
variation can be lessened by exploiting the Shigeo was able to give a better way of life
non-linear effects of the product or process for both the operators and the companies.
parameters on the performance His policies have earned reputation through
characteristics. outcome in manufacturing among the
5. Statistically planned experiments can be companies that have implemented these
used to name the settings of product/ teachings. In view of his contributions, Utah
process parameters that reduce State University founded the Shingo prize
performance variation. for excellence in manufacturing in 1988.
Taguchi is known for applying a concept This prize encourages world-class
called design of experiments to product manufacturing and distinguishes
design. This method is an engineering companies that accomplish superior
approach that focuses on developing robust customer satisfaction and business results,
design that enables products to perform and has been matched up to a Noble Prize
under varying conditions. He believed that for manufacturing.
it was more difficult to control the
environmental conditions. Taguchi's Dr. Shigeo was one of the greatest
approach focuses on a statistical method influences on Japanese quality control and
that zeros in rapidly on the variations in a his contributions to quality improvement
product that distinguish the bad parts from transformed the Japanese industrial sector
the good. He advocated that all factors that and accordingly influenced the industries in
can hamper uniformity between products the west. Dr. Shingo Shigeo's teachings can
and their long-term stable performance be classified into the three concepts listed
must be studied, and safeguards must be as follows:
built in the product design stage itself. He
called it the concept of robust design. 1. Just In Time (JIT) - The JIT manufacturing
Robust design results in a product that can concept was originated in part due to the
perforin over a wide range of conditions. contribution of Dr. Shingo Shigeo and Taichii
Ohno of Toyota Motor Corporation from
Taguchi's eight-point approach 1949 to 1975. During this period Dr. Shigeo
took responsibility of industrial engineering
1. Determine the main functions, side and factory improvement training at Toyota
effects and loss modes. Motor Corporation. This is commonly
2. Determine the noise factors and the referred to as JIT or the Toyota Production
testing conditions for evaluating failure of System. The essential element in
quality. developing JIT was the use of the Ford
3. Determine the quality characteristics to System along with the consciousness that
be observed and the objective functions to factory workers had more to contribute
be optimized. than just muscle power. JIT is about
4. Determine the control factors and their supplying customers with what they want
alternate levels. when they want it. The aim of JIT is to
5. Blueprint the matrix requirements and diminish inventories by producing only
define the data analysis procedure. what is necessary when it is necessary.
6. Carry out the matrix. Orders are "pulled" through the system
7. Examine the data, identify optimum when prompted by customer orders, not
levels for the control factors and foresee pushed through the system in order to
performance under these levels. attain economies of scale with the
8. Perform the confirmation experiment and production of larger batches.
prepare future actions.
2. Single Minute Exchange of Dies
DR. SHINGO SHIGEO (SMED) - It is a system for speedy
changeovers between products. The target
is to make simpler materials, machinery,
processes and skills to significantly was originally introduced to the West by
decrease changeover times from hours to Masaki Imai in his book Kaizen: The Key to
minutes. As a consequence, products could Japan's Competitive Success in 1986. Today
be produced in small batches or even single Kaizen is acknowledged globally as an
units with negligible disturbance. essential pillar of an organization's long-
term competitive strategy. Kaizen is
3. Zero Quality Control (ZQC) - The ZQC continuous improvement that is based on
concepts are based on the theoretically certain guiding principles:
ideal scenario. However, quality
improvement can be made using these 1. Good processes carry good results
principles and concepts. Dr. Shigeo' basic 2. Go see for yourself to grab the present
idea was to implement error-proofing situation
devices in the assembly line to abolish the 3. Speak with data, direct by facts
likelihood of flawed operations. In addition, 4. Take action to contain and remedy root
his accent was on targeting the root cause causes of problems
of defect whenever a defect ' took place, 5. Work as a team
thereby almost abolishing the requirement 6. Kaizen is everyone's business
for statistical process control. The famous Kaizen is an inseparable aspect of TQM
equation in the spirit of Zero Quality Control which is mandatory in all activities of the
Concepts formulated by the Japanese organization. Kaizen has to essentially carry
quality guru, Dr. Shigeo Shingo is: out with small, step-by-step continuous
improvement. Smaller and continuous
Poka-Yoke Techniques to Correct Defects + improvements are more realizable,
Source Inspection to Prevent Defects = predictable, controllable, and acceptable.
Zero Quality Control Kaizen philosophy believes that people at
all levels, together with the lowermost
This technique by Dr. Shigeo makes use of levels in the organizational hierarchy, can
the following engineering principles: add to improvements. This is possible
a. 100% inspections done at the because Kaizen asks for
starting place instead of sampling simply little improvements.
inspections In order to carry on in an increasingly
competitive world, top management must
b. Instant feedback from consecutive adopt a just-in-time (JIT) approach and
quality checks and self-checks drive change down the hierarchy without
yielding to opposition. The key ideas
c. Poka-yoke designed manufacturing associated with JIT were developed at the
devices-Poka yoke relates to stopping Toyota Motor Company under the
processes as soon as a defect happens, leadership of founder Eiji Toyoto whose
searching the defect source and avoiding it father had founded the successful Toyota
from occurring once more so that there will Spinning and weaving company. JIT is the
be reduced reliance on statistical quality management philosophy that endeavors to
inspections and the production process will get rid of sources of manufacturing waste
have zero defects. For example, Binney and and producing the right part in the right
Smith, maker of Crayola Crayons, uses light place at the right time.
sensors to verify if each crayon is present in
each box of crayons they produce. If a KAIZEN: CONCEPTS AND SYSTEMS
crayon is missing, the machines will
discontinue automatically. Producing Kaizen is a philosophy that calls for people
complete boxes of crayons right the first and their organizations to experience
time is the preferred outcome. ongoing improvement at every level.
Using his key teachings, many modern-day Through focusing on small, incremental
manufacturing companies have realized change rather than dramatic innovation,
substantial profits. Kaizen seeks to construct effective and
efficient processes and quality outputs.
MASAKI IMAI Kaizen at the workplace means continuing
improvement involving everyone,
Masaki Imai is the Founder and President of managers and workers alike. The Kaizen
Kaizen Institute who threw the word business strategy involves everyone in an
"Kaizen". Kaizen refers to continuous or on- organization working together to make
going improvement" in Japanese. Kaizen
improvements without large capital They succeeded eradicating all the wastes.
investments. Kaizen is used for placing the terms as
productivity, total quality control (TQC),
zero defects (ZD), and just-in-time (JIT).
KAIZEN CONCEPTS Therefore, Kaizen is a main concept for all
Kaizen is a Japanese word meaning these practices.
continuous improvement. It is made up of A lot of people have misunderstood about
two characters which are "kai", meaning Kaizen. People have the stereotype that
"change," and "zen," which meaning Kaizen can make dramatically changed
"good." It is used to describe a company immediately, and bring the profits
culture where everyone, from the CEO to right away. However, this is not true.
the front desk clerk, regularly evaluates his Improvements under kaizen are small
work and thinks of ways to improve it. The and incremental, but the kaizen will bring
concept is that small steps on a customary the huge results over time. Japanese
basis will lead to large improvements in due management and Western management
course. Kaizen entails relatively little are different from the concept of the
expense. management. For Western management,
Kaizen originated in Japan as a result of they are inclined to focus on the worship of
World War II. Ironically, it evolved in part innovations which is pretty much relying on
from American business leaders like Dr. W. the changes in the technological
Edwards Deming who came to help restore breakthroughs. On the other hand, for the
the country. It was first introduced by a Japanese management, kaizen is not
1951 training film created usually remarkable incident. However,
by the American Economic and Scientific innovation is one -shot improvement, and
Section (ESS), although Dr. Deming is its consequences are often problematic.
largely credited for instituting the principles While the kaizen process, which is based on
of Kaizen in Japan. Kaizen's common sense, low-cost approaches and
elimination of waste through the low risk approach, guarantees gradual
maintenance and improvement of progress that pays off overtime.
processes There are two types of kaizen which are
became fundamental to Japanese Gemba (actual workplace) kaizen and Teian
management philosophy. It has since (plan) kaizen. Gemba and teian kaizen both
stretch intend to develop higher production and
around the world to companies and quality standards. Gemba kaizen is an
organizations wishing to follow the success action-oriented approach and refers to
of Japanese business. improvement activities that are carried out
in the actual workplace, like on the shop
The main advantages of a correctly floor or on the manufacturing line. Gemba
implemented Kaizen are most often: kaizen involves all
● A better workplace and a safer aspect of daily work that can be improved.
working environment The heart of gemba kaizen lies in small
● Better commitment and employee changes that will transform the overall
retention success of the company not automatically
● Improved problem-solving skills and right away but in the long run. Gemba
quality of teamwork kaizen methods are quality circles and
● Increased competitiveness and suggestion systems. In quality circles, a
customer satisfaction specialized team develops and designs
● Reduced waste and overly hard work ideas concerning how to improve the
● Increased productivity and overall company's performance. Suggestion
company success systems encourage employees to submit
suggestions for improving work processes
Toyota has been known as the initial and customer satisfaction. Teian kaizen, on
company that has started Kaizen. The the other hand, represents a theory-based
application that Toyota used was called approach and refers to strategic
"Toyota Production System", where all line improvements that are prejudiced by top
personnel are expected to discontinue their management. Here, the implementation of
moving production line in the latest processes and practices play the
case of any irregularity, and suggestions for most dominant role. The overall goals of
improvement are awarded reward. teian kaizen are improved business and
manufacturing practices. The most
prominent teian kaizen methods include 1. The role of a manager is to act as a
total quality control and just-in-time facilitator at the workplace. It is the duty of
management. a manager to assist employees in
implementing TQM. As a manager, it is also
Kaizen and Management his responsibility to choose and assign right
individuals who can work as line
It is also essential that management is managers and take charge of the whole
trained and be behind the effort. Kaizen will project. The employees to be selected
result in many more suggestions for must be reliable and diligent and capable
improvements and changes and will take as much as necessary to handle a
away from a strict focus on moving items key project like TQM. It is the manager's
quickly through the existing production responsibility to allocate resources
process. Management must be prepared to for TQM, schedule time for different training
recognize some time away from current programs and be grateful for
work to focus on changes with longer-range employees who come up with a variety of
impact. improvement ideas and strategies
Management has two major components which would aid the organization bring
which are maintenance, and improvement. better quality products. Further
The objective of the maintenance function train subordinates to guarantee smooth
is to maintain current technological, implementation of TQM without any
managerial, and operating standards. The obstacles.
improvement function is aimed -at 2. A manager must communicate the
improving current standards. Under the benefits of total quality management to all
maintenance function, the management other members of the organization. Call
must first establish policies, rules, employees on a common platform and
directives and standard operating address the benefits and importance of
procedures (SOPs) and then work towards TQM. Make them understand how
ensuring that everybody follows SOP. The successful implementation of TQM
latter is achieved through a combination of programs would give way to high quality
discipline and human resource products which would benefit the
development measures. organization and the employees as well.
Under the improvement function,
management works constantly towards A manager is always a strong source of
modifying the existing standards, once they inspiration for other employees. He needs
have been mastered, and establishing to practice TQM himself before expecting
higher ones. Improvement can be broken others to believe in the same
down between innovation and Kaizen. principle. Customer feedbacks should be
Innovation involves a drastic improvement cautiously screened and taken into
in the existing process and requires large consideration while creating company's
investments and big efforts. Kaizen signifies major strategies. A manager must also
small improvements as a result of provide frequent reports to staff members
coordinated continuous efforts by all stressing scope of improvement.
employees.
Initiating and implementing TQM programs
need great quantity of planning and Process Vs Results
research. Managers are required to acquire
training in various TQM practices prior to Process-oriented thinking mostly centers on
implementing the same. There are costs how processes are carried out through the
involved with the whole process of TQM. It assessment of performance indicators
is the manager's responsibility to distribute generated by measuring or observing he
budgets for TQM at the beginning of every process flow. Result-oriented thinking
financial year. basically disregards how processes flow and
A manager needs to work closely with the work. Instead, process results/outcomes are
senior management, human resource obtained, monitored and evaluated
professionals to 'develop perfect systematically. For example, micro level
implementation strategies. A manager has performance indicators include lead time,
to act as a bridge between the senior cycle time, throughput time, and defective
management and the entire workforce. part ratio. While macro level performance
indicators consist of profit or customer
satisfaction which would be monitored in studied prior to getting on a continuous
result-oriented thinking. improvement journey. The distinctive
Kaizen focuses at improving the process features of process-oriented and result-
rather than at achieving certain results. oriented criteria are given in Table 2 below.
Such managerial attitudes and process
thinking formulate a major difference in the
manner an organization masters change
and achieves improvements. This
concept of process-oriented thinking
indicates that there must be some
problems in a process if the outcomes are
not encouraging to the firm.
Kaizen recognizes the connection between
outcomes and processes. If the
results from an organization are of poor
quality, the processes used to achieve
those results necessitate concentration.
This understanding is a component of PDCA/SDCA Cycles
the framework of Japanese society, even on Central to the philosophy of Kaizen are two
the personal level, and explains why Kaizen cycles that involve processes for
is so successful there. improvement and for maintenance: Plan-
Do-Check-Act (PDCA) and Standardize-Do-
Check-Act (SDCA). When improving
processes, the following are the phases:
1. Planning Phase - Planning is the most
vital phase of total quality management. In
this phase employees have to come up with
their problems and queries which need to
be addressed. They need to come up with
the various challenges they face in their
day-to-day operations and also analyze the
problem's root cause. Employees are
required to do necessary research and
The manner in which processes are collect relevant data which would help
addressed is a key element Of Kaizen. them find solutions to all the problems.
While in the West, innovation or radical
change is often sought, Kaizen hunts for 2. Doing Phase - In the doing phase,
constant incremental change, which employees develop a solution for the
generates remarkable results eventually. problems defined in planning phase.
Since the changes in Kaizen are small, Strategies are devised and implemented to
errors can effortlessly be corrected with no overcome the challenges faced by
involvement of much risk or expense. This employees. The effectiveness of solutions
is likely to make Kaizen processes less and strategies is also measured in this
wasteful than innovation, where error can stage.
have tremendous loss effects.
Quality gurus strongly note that a
combination of process-oriented and result-
oriented management should be
implemented throughout the entire
operational system instead of focusing on
just one orientation (either process or
result) as this heightened focus may not be
enough to generate successful continuous
improvement strategy. Continuous
improvement can be either a team
management or top management initiative.
In order to be able to utilize these two
management approaches appropriately, the
basic features of process-oriented and 3. Checking Phase - Checking phase is the
result-oriented management should be stage where people actually do a
comparison analysis of before and after Putting Quality First
data to confirm the effectiveness of the Kaizen also talks about improving
processes and measure the results. performance in terms of three dimensions
which are quality, cost, and delivery (QCD).
4. Acting Phase - In this phase employees QCD offers a method of measuring
document their results and prepare processes while being applicable to both
themselves to address other problems. simple and complicated business
processes. It also represents a basis for
Maintenance cycle, SDCA is invoked when a comparing businesses. For example, a
failure occurs. Standardization seeks to business measuring supplier delivery
stabilize processes so they can be performance may easily compare its
improved. Through understanding if a findings against other businesses'
failure occurred because of a poor or non- performance. But basically, QDC altogether
existent standard or because an existing will be implemented as a single
standard wasn't followed, managers can management in any corporate for man-
implement specific actions to correct it. power reduction.
Once a standard is put into place and put Quality is typically among the most
into practice, it can become the focus of essential criteria customers use to make
the PDCA cycle. the purchase. Quality is usually customer-
The SDCA cycle ensures that the defined and referred to as the perceived
improvements that have been done using characteristics and features of a product.
Kaizen works well and improvements do not This includes the quality of processes that
slide back. SDCA prevents the deterioration go into it.
and therefore it is extremely important that Kaizen requires that quality is a primary
both the SDCA and PDCA cycles are well goal. There could be so many goals
established. Improvement without for the firms to achieve such as goals of
standardization is stillborn to say the least. quality, cost, and delivery. However, the
firm should always put quality first priority.
Kaizen recognizes that without a quality
product, organizations will not be able to
compete. If managers make some changes
on delivery to make it cheaper or cutting
costs somehow, and it ends up making the
quality worse, they risk sacrificing not only
quality but the life of the business as well.
Cost is generally looked at coming from the
manufacturer's viewpoint, as the overall
cost of making and selling a product. An
important factor, here, is the
Standard is the best, safest and easiest elimination of waste in many aspects of
way, to achieve and maintain a defined work, such as production, inventory,
quality level. repair, rejects, motion, processing and so
Standards should be: on.
1. Be simple, clear and conspicuous Delivery refers to bringing the necessary
2. Be the best, easiest, safest way- should quantity of products in the right place
only have one at a time at the right time. The company may offer
3. Preserve know — how better prices using reduced cost and
4. Be guide-lines that enable performance attractive delivery terms. However, this
5. Measurement of tasks delegated does not guarantee competitiveness, if
6. Assure quality, cost, delivery and safety the quality of goods and services falls short
7. Show relationship between cause and of consumer expectations. Some cost-
effect oriented managers do not resist the lure of
cutting cost at the expense of quality. This
With Standards: could work well in the short-term, but would
I. Management becomes possible likely to endanger not only profitability, but
2. There is a basis for training also reputation and market position of the
3. There is a basis for audit or diagnosis product in the long-term.
4. Problems are prevented from recurring
and control variability Speak with Data
Kaizen is a problem-solving process. Since
Kaizen deals with addressing KAIZEN SYSTEMS
problems or limitations, every situation
must be correctly understood. Kaizen Next, the systems of kaizen have to be
has no room for "seat of the pants" understood. Kaizen encompasses many of
operations. In order to correct the problems the components of Japanese businesses
in a process, detecting the problems is the that have been seen as a part of their
first thing to do. Sound data must be success. Total quality control/total quality
gathered and evaluated for Kaizen to work management, just-in-time delivery, total
for improvement. Without this data productive maintenance, suggestion
the company will be like a flying blind. It system, policy development, suggestion
will never be able to tell what is working systems, and small-group activities are all
and what needs to be improved. Data is the included within the Kaizen system of
lifeblood of kaizen. running a business.

The Next Process is Customer

The last concept of kaizen is that the next
process is the customer. This means that all
workers think that next process is the
customers. So, all workers in any process
on no account pass on flawed parts or
imprecise pieces of information to those in
next process particularly when the
organization has a strong commitment to
consumer satisfaction. If all workers have to
be cautious on what they are doing, the TQM Control
customers get the high-quality product and
service as a result. Total quality control (TQC) and total quality
Kaizen promotes the concept of internal management (TQM) are widely used in
and external customers. Through regarding manufacturing, education, government and
every process in a series as a customer of service industry now. TQC / TQM have been
the preceding process, every stage of developed as a strategy to help
production can be concentrated for a management in becoming more
quality result. If each internal customer is competitive and profitable through helping
delivered high quality goods, the external it to improve in all phases of business. TQM
customer will have a high-quality product to necessitates that the company uphold
purchase. some quality standard in all phases of its
Kaizen views the whole work in a specific business. This need ensuring that things
organization as a series of interrelated are completed right the first time and that
processes where each consists of a supplier defects and waste are removed from
and a customer. The supplier provides the operations.
process with inputs such as materials TQC is a management tool for improving
and/or information. The supplier can be total performance. TQC means
another process within the organization or organized Kaizen activities involving
someone outside the organization. Same everyone in a company. Managers and
goes to the customer; the customer is workers alike should be part of a totally
either someone in the organization (internal systemic and integrated effort toward
customer) or the final customer out in the improving performance at every level. It is
market (external customer). The customer geared towards increased customer
receives or deals with the output of the satisfaction through satisfying such
process. Having this in mind, all individuals corporate cross-functional goals as quality,
within an organization deal with customers cost, scheduling, manpower development,
either internal or external ones. That is, the and new product development.
next process is always regarded as a In Japan, TQC activities are not limited to
customer. Through this, Kaizen tries to set quality control alone. Elaborate
up a natural commitment to on-going system of Kaizen strategies has been
process improvement throughout the developed as management tools within
organization to ensure that external the TQC approach. TQC in Kaizen is a
customers will always receive high quality movement intended at improvement of
products.
managerial performance at all levels. costs. Also, the firm can meet the
According to the Japan Industrial Standards, customer's delivery needs.
"implementing quality control
effectively necessitates the cooperation of Elements of JIT
all people in the company, including 1. Make stable and level the Master
top management, managers, supervisors, Production Schedule (MPS) with uniform
and workers in all areas of corporate plant loading creates a uniform load on all
activities such as market research and work centers through regular daily
development, product planning, design, production and mixed model assembly.
preparation for production, purchasing,
vendor management, manufacturing, 2. Decrease or eliminate set up times.
inspection, sales and after-sale services, as Aspire for single digit set up times less than
well as financial control, personnel 10 minutes or one touch setup. This is done
administration, and training & education. through better planning, process, redesign,
Quality control carried out in this manner is and product redesign.
called company-wide quality control or total
quality control (TQC)." 3. Trim down lot sizes. Decreasing set up
Quality control in Japan deals with quality of times allows economic production of
people. It is the fundamental concept of the smaller lots, close cooperation with
Kaizen-style TQC. Building quality into its suppliers which is necessary to realize
people brings a company a half-way reduction.
towards producing quality products.
4. Shrink lead times. Production lead times
TQC of Japan vs. West can be reduced by moving work
stations closer together, applying group
technology and cellular manufacturing
Main Differences between TQC Practices in concepts, reduce wait-in-line length and
Japan and West improving the coordination and
cooperation between successive processes.
Japan Delivery lead times can be decreased
Deals with quality of people Customer- through close cooperation with suppliers,
oriented perhaps by inducing suppliers to be located
Upstream very near to the factory.
Process-oriented aimed at improving the 5. Preventive maintenance. Use of machine
total performance and worker idle time to preserve equipment
Company-wide, everybody's responsibility and avoid breakdown.
6. Flexible work force. Workers should be
The West trained to work on several machines,
Deals with quality of products to carry out maintenance tasks, and to do
Manufacturer-oriented quality inspections.
Downstream
Product-oriented, aimed at detecting and 7. Oblige supplier quality assurance and
eliminating defective parts execute a zero-defect quality program.
Responsibility of quality control managers Small lots (single unit) conveyance. Make
use of a control system like Kanban system
JIT Production System (or other signaling system) to transport
Many people have misconstrued Just-in- parts between work stations in smaller
time (JIT) production. In one of most quantities. In its better sense, JIT with
frequent misunderstandings, a company Material Requirements Planning (MRP)
expects its suppliers to deliver just-in- system is used to transport the parts
time. However, JIT production has between workstations.
something to do with internal process. JIT is
a revolutionary way to trim down cost while
at the same time meeting the customer's Reasons for a move from batch mode to
delivery needs. For example, new stock will Just-in-time (JIT)
be ordered automatically when stock 1. Batch production system is the most
reaches the re-order point level. So, this inefficient way to make products.
system ensures that the firm-can maintain 2. Difficult to meet customer requirements,
the minimum required number of stocks which come in varying orders, like
every day, which saves a lot of inventory
varying volumes in varying time frames was dedicated with work of maintaining
and soon. those machines. However with the
3. The batch system derives from the automation of Nippondenso, maintenance
agricultural mentality. The batch system, became a problem as more maintenance
purchase material and produce in huge personnel were required. So the
batches and there are many processes. At management decided that the routine
every process, gather the batch and at the maintenance of equipment would be
end collect the finished product in a batch, carried out by the operators which are
which is stocked up in the warehouse. termed as autonomous maintenance, one
4. This kind of production system is based of the features of TPM. Maintenance group
on market projection, is good when took up only essential maintenance works.
there is demand. Thus Nippondenso which already followed
5. End up with large inventory of unsold preventive maintenance also added
products and overload capacity, and autonomous maintenance made by
then borrow money to carry that inventory. production operators. The maintenance
By that time, got hold of too many crew went in the equipment modification
people for every process. for improving reliability. The modifications
were made or incorporated in new
equipment which leads to maintenance
Total Productive Maintenance prevention. Thus preventive maintenance
In industry, total productive maintenance along with maintenance prevention and
(TPM) is a system of maintaining and maintainability improvement gave origin to
improving the integrity of production and productive maintenance. The intention of
quality systems through the machines, productive maintenance was to get the
equipment, processes, and employees that most out of plant and equipment
add business value to an organization. TPM effectiveness to attain optimum life cycle
focuses on maintaining all equipment in top cost of production equipment.
working condition to avoid breakdowns and By then Nippondenso had made quality
delays in manufacturing processes. circles, involving the employees' input.
Thus all employees took part in
The term total productive maintenance is implementing productive maintenance.
attributed to Nippondenso, a company that Based on these developments Nippondenso
created parts for Toyota. However, Seiichi was awarded the distinguished plant prize
Nakajima is regarded as the father of TPM for developing and implementing TPM, by
because of his numerous contributions to the Japanese Institute of Plant Engineers
TPM. (JIPE). Thus Nippondenso of the Toyota
One of the main objectives of TPM is to group became the first company to achieve
increase the productivity of plant and the TPM certification.
equipment with a modest investment in Another objective of TPM is to increase the
maintenance. Total quality management overall equipment effectiveness (OEE) of
(TQM) and total productive maintenance plant equipment. TPM also addresses the
(TPM) are considered as the key operational causes for accelerated deterioration while
activities of the quality management creating the correct environment between
system. In order for TPM to be effective, the operators and equipment to create
full support of the total workforce is ownership.
required. This should result in OEE has three factors which are multiplied
accomplishing the goal of TPM: "Enhance to give one measure called
the volume of the production, employee OEE Performance x Availability x
morale and job satisfaction." Quality = OEE
Total Productive Maintenance (TPM) is a
modern Japanese concept. The origin of Each factor has two associated losses
TPM can be traced back to 1951 when making 6 in total , these 6 losses are as
preventive maintenance was initiated in follows:
Japan. However the concept of preventive 1. Performance - running at reduced speed
maintenance was taken from USA. and minor tops
Nippondenso was the first company to 2. Availability - breakdowns and product
begin plant wide preventive maintenance in changeover
1960. Preventive maintenance is the 3. Quality - start-up rejects and running
concept wherein, operators produced goods rejects
using machines and the maintenance group
The objective finally is to identify then measuring and analyzing data about
prioritize and eliminate the causes of the deterioration and employs a surveillance
losses. This is done by self managing teams system, designed to monitor conditions
that problem solve. Employing consultants through an on-line system.
to create this culture is common practice.
The eight pillars of TPM are mostly focused 3. Corrective maintenance - It
on proactive and preventative improves equipment and its components so
techniques for improving equipment that preventive maintenance can be carried
reliability: out reliably. Equipment with design
1. Focused Improvement weakness must be redesigned to improve
2. Autonomous maintenance reliability or improving maintainability
3.PlannedMaintenance
4. Quality Maintenance 4. Maintenance prevention - It indicates the
5. Cost Deployment design of new equipment. Weakness of
6. Early Equipment Management current machines are sufficiently studied
7. Training and Education (on site information leading to failure
8. Safety Health Environment prevention, easier maintenance and
prevents of defects, safety and ease of
With the help of these pillars productivity manufacturing) and are incorporated before
can be increased. commissioning a new equipment.

Types of maintenance
1. Breakdown maintenance - It means that Policy Development
people waits until equipment fails and People follow policies, good or bad. The
repair it. Such a thing could be used when need, therefore, is for organizations in
the equipment failure does not developing countries to realize the
significantly affect the operation or importance of clear, well-defined policy
production or generate any significant loss statement's on quality, reflecting
other than repair cost. management's commitment and
orientation and to propagate them through
2. Preventive maintenance - It is a daily various modes, such as circulation of
maintenance (cleaning, inspection, oiling documents,
and re-tightening), design to retain the newsletters, training, meetings, pledge
healthy condition of equipment and cards and personal contacts.
prevent failure through the prevention of It needs to state the level of defects or
deterioration, periodic inspection or errors that is acceptable. The policy also
equipment condition diagnosis, to measure needs to state the relationship between the
deterioration. It is further divided into company and the customer. The policy
periodic maintenance and predictive should be direct and concise and should
maintenance. Just like human life is clearly define management's commitment
extended by preventive medicine, the to quality. The policy on quality has to be a
equipment service life can be prolonged by statement that will not be misunderstood. It
doing preventive maintenance. has to cover conformance to requirements,
time and money.
a. Periodic maintenance (Time based Once the policy is written, management
maintenance - TBM) - Time based needs to determine how to explain it to
maintenance consists of periodically employees. The best method is for top
inspecting, servicing and cleaning executives to meet personally with groups
equipment and replacing parts to prevent of employees to explain the policy. This also
sudden failure and process ensures that the commitment and interest
problems of top management is properly understood
by all.
b. Predictive maintenance - This is a
method in which the service life of Suggestion Systems
important part is predicted based on On the other hand, suggestion system is
inspection or diagnosis, in order to use the regarded as individual-oriented kaizen.
parts to the limit of their service life. Suggestion system encourages all workers
Compared to periodic maintenance, to talk about their suggestions orally with
predictive maintenance is condition-based supervisors and put them into action right
maintenance. It manages trend values, by away, even before submitting suggestion
forms. However all the workers don't need educated, should management be
to expect to get economic benefits from concerned with the economic impact of the
each suggestion. The process to think and suggestions.
have the idea of each worker is vital. This
system is different from Western Benefits of a Suggestion System
management which emphasis on the Implementing an effective Staff Suggestion
economic benefits and financial incentives System that generates a sustainable flow of
of suggestion systems. good quality ideas is not impossible. In
The suggestion system is an integral part of Toyota, 700,000 ideas are generated
an established management system that annually with a 99% implementation rate.
aims at involving employees in Kaizen. The Here are the benefits of a suggestion
number of worker's suggestions is regarded system, namely:
as important criteria in reviewing the 1. Improves one's own work and the
performance of the worker's supervisor and working environment
the manager of the supervisor. The 2. Engages and empowers employees
Japanese management encourages 3. Creates ownership and trust
employees to generate a great number of 4. Improves motivation and morale
suggestions and works hard to consider and 5. Improves customer satisfaction
implement these suggestions, often 6. Improves profitability
incorporating them into the overall Kaizen
strategy. Management also gives due Many organizations have made the mistake
recognition to employee's of putting up suggestion boxes and expect
efforts for improvement. An important employees to participate and contribute
aspect of the suggestion system is that good quality ideas to improve the products,
each suggestion, once implemented, leads services and the working environment
to an upgraded standard. without creating a supporting infrastructure
to manage the flow of suggestions.
Three Stages of the Suggestion System More often than not, these suggestion
A staff suggestion system is a formalized boxes are either empty or become
mechanism which encourages collectors of trash. For a suggestions
employees to contribute constructive ideas system to be successful and effective, the
for improving the organization in following factors have to be considered:
which they work. The overall aim is to 1. Formation of a suggestions committee to
gather, analyze and implement ideas in plan and manage the suggestions system
order to create results that have a positive 2. Defining the suggestions process,
impact on the business and/or deliver new including a feedback system
value to customers. The following are the 3. Promoting the suggestions system
three stages of implementing 4.Evaluation system
suggestion system: 5. Award system
1. Encouragement. In the first stage, 6. Sustaining the suggestions system
management should make every effort to
help
the workers provide suggestions, no matter
how primitive, for the betterment
of the worker's job and the workshop. This
will help the workers look at the way they
are doing their jobs.

2. Education. In the second stage,

management should stress employee
education
so that employees can provide better
suggestions. In order for the workers to
provide better suggestions, they should be Why Suggestion System Stumbles and How
equipped to analyze problems and the to Avoid Them
environment. This requires education. Most suggestions remain to be suggestions
because of:
3. Efficiency. Only in the third stage, after 1. Delays in approving ideas — Respond
the workers are both interested and within the day to team member ideas
whenever possible. The approval may be a
"go do it" or to give coaching to 7. Unfair rewards - Every idea should
ideas that require further thought and receive a small reward. Larger awards
development. For complex or large may be given based on several categories
ideas, respond within- a week, or like effort, creativity and impact
encourage the idea generator (person) to of the kaizen idea. Encouraging kaizen idea
break the problem down into several generation, development and
smaller parts. implementation by teams, and giving team
rewards also lessens the possibility of unfair
2. Complex approval process (committees) rewards being given to individuals.
- The approval process should undergo
observation, discussion and approval by the 8. Motivating by cash only - Since humans
team leader or supervisor. It's better to go are at the heart of kaizen, and humans
see the actual issue in the actual place need both extrinsic (cash) and intrinsic
than to discuss the issue in a conference motivation. Sustained kaizen needs
room based on ideas written on a piece of intrinsic motivation like recognition, self-
paper. actualization, skill development, feeling
fulfilled, or saving the environment through
3. Backlog of suggestions needing approval kaizen suggestions. Management attention
or implementation - Ironically, asking for and leadership is required.
quantity over quality will force the
identification of smaller problem that are 9. Lack of promotion and support of the
easier to solve. This reduces the backlog as kaizen suggestion program - Endorse
more of them are "just do it" ideas. This kaizen in all its forms in a variety of ways.
increases the skill and confidence of people Take a long-term view of kaizen a people
to go through the problem-solving process development and communication strategy.
(thinking) as well as the action itself Start by encouraging idea
(experimentation). generation by teams, and aiming for
quantity over quality. Hold periodic
4. Less than 99% of ideas implemented - An "championships" or promotional events
idea should be nurtured and the idea based on themes.
generator (person) should be coached so 10. Lack of timely implementation -
that basically every idea is approved. Companies can do these entire well and still
Provide guidelines on what is a good not get the ideas put in place quickly
kaizen. Track approval rating visually and enough if resources. Meaning time, money,
have a management team problem solve materials, skills are not enough for the
the gap between current condition and 99% number of great ideas team members
implemented. are generating. The skill matrix is a great
enabler for suggestion systems. Once
5. Inappropriate kaizen suggestions - Once again, the management should evaluate
again, clear guidelines for what is the gaps in the 4Ms (manpower,
a good kaizen idea. Focus on the customer, material, machine, method) resources to
improve own work; and keep keep suggestions moving smoothly.
environmental targets from management
policies in mind. Process focus, not people
issues, is appropriate. Small Group Activities
A kaizen includes small-group activities-
6. Allowing anonymous suggestions - This informal and voluntary groups organized to
defeats the purpose of kaizen as a people carry out specific tasks in a workshop
development tool since the idea generator environment. The quality circles are the
cannot be coached. It's alright to allow most popular type. Quality circles are
anonymous suggestions where people feel designed to address not only quality issues
need to "blow the whistle". Except that this but also such issues as cost, safety, and
indicates that the workplace is not safe productivity. Quality circles are regarded as
professionally, group-oriented kaizen activities.
emotionally or physically and is not a stable Small Group Activity (SGA) is also known
environment for kaizen. Fix that condition as focused or continuous improvement in
before launching suggestion systems and English. SGA finds its origin in the Japanese
anonymous suggestions would not be an industry where it is called Quality Circles
issue. (QC). SGA is a method for problem solving
in teams by structurally searching for the
root causes and eliminating them. After
standardization of the solution the
reoccurrence of the problem is prevented.
The feeling of ownership is intensified
because those who are directly involved
solve the problem in a multifunctional
team.
The members of the team learn to use
techniques (cause and effect diagram,
Fishbone-diagram) to find and eliminate
root causes. The team is also taught
communication skills, working in teams and
decision making, in order to use each
other's knowledge and experience.

The structure of an SGA project is derived

from the PDCA-circle from Dr. W. Edward
Deming and exists of 8 steps on the basis
of the SGA circle. The SGA team works
independently and reports the progress by
means of communication boards.
The introduction of SGA leads to the
following results:
1. Team-building
2. Improved communication
3. Higher involvement
4. Learn how to analyze and solve
problems.