Quality

management
theory
 Total quality
management (tqm)
 Total Quality
Management is a
management
philosophy, a
paradigm, a continuous
improvement approach
to doing business
through a new
management model.

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TQM is a quality
improvement body of
methodologies that are
customer-based and
service oriented.

TQM was first

developed in Japan,
and then spread in
popularity.

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 Total Quality Management

However, while TQM may refer to a set of

customer based practices that intend to improve
quality and promote process improvement,
there are several different theories at work
guiding TQM practices.

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 1.
Deming’s Theory
An American engineer,
statistician, professor,
author, lecturer, and
management consultant.
Educated initially as an
electrical engineer and later
specializing in mathematical
physics, he helped develop
the sampling techniques still William
used by the U.S. Demin1g900- Edwards
Department of the Census 1993
and the Bureau of Labor
Statistics.

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 Deming’s Theory of Total Quality
management
> Deming’s theory of Total Quality Management rests
upon fourteen points of management he identified, the
system of profound knowledge, and the Shewart
Cycle (Plan-Do-Check-Act).

> He is known for his ratio - Quality is equal to the

result of work efforts over the total costs.

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If a company is to focus
on costs, the problem is
that costs rise while
quality deteriorates.
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Deming’s system of profound knowledge
consists of the following four points:
> System Appreciation - an understanding of the
way that the company’s processes and systems
work
> Variation Knowledge - an understanding of the
variation occurring and the causes of the
variation
> Knowledge Theory - the understanding of what
can be known
> Psychology Knowledge - the understanding of
human nature 10
 The fourteen points of Deming’s theory of
total quality management
1. Create constancy of purpose
2. Adopt the new philosophy
3. Stop dependencies on mass inspections
4. Don’t award business based upon the price
5. Aim for continuous production and service
improvement
6. Bring in cutting-edge on the job training
7. Implement cutting-edge methods for leadership

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The fourteen points of Deming’s theory of
total quality management
8. Abolish fear from the company
9. Deconstruct departmental barriers
10. Get rid of quantity-based work goals
11. Get rid of quotas and standards
12. Support pride of craftsmanship
13. Ensure everyone is trained and educated
14. Make sure the top management structure supports
the previous thirteen points.

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> Plan-Do-Check-Act (PDCA) is a cycle created for
continuous improvement.
> In the planning phase, objectives and actions are
outlined.
> Then, you do your actions and implement the process
improvements.
> Next, you check to ensure quality against the original.
finally acting requires that you determine where
changes need to occur for continued improvement
before returning to the plan phase.

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 2.
Crosby’s Theory
A businessman and author
who contributed to
management theory and
quality management
practices. Crosby initiated the
Zero Defects program at the
Martin Company. As the
quality control manager of
the Pershing missile program, Philip
Crosby was credited with a Cros1b9y26- Bayard
25 percent reduction in the 2001
overall rejection rate and a 30
percent reduction in scrap
costs.
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 Crosby’s Theory of Total Quality
management
> Philip Crosby is another person credited with starting
the TQM movement.

> He made the point, much like Deming, that if you

spend money on quality, it is money that is well spent.

> Crosby based on four absolutes of quality

management and his own list of fourteen steps to
quality improvement.
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 Crosby’s Four Absolutes
1. We define quality as adherence to requirements

2. Prevention is the best way to ensure quality

3. Zero Defects (mistakes) is the performance

standard for quality

4. Quality is measured by the price of

nonconformity
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 The fourteen steps to continuous quality
improvement, for Crosby
1. Attain total commitment from management
2. Form a quality improvement team
3. Create metrics for each quality improvement activity
4. Determine cost of quality and show how
improvement will contribute to gains
5. Train supervisors appropriately
6. Encourage employees to fix defects and keep issues
logs
7. Create a zero-defects committee
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 The fourteen steps to continuous quality
improvement, for Crosby
8. Ensure that employees and supervisors understand the
steps to quality
9. Demonstrate your company’s commitment by holding a
zero defects day
10. Goals are set on 30, 60, or 90 day schedule
11. Determine root causes of errors, remove them from
processes
12. Create incentives programs for employees
13. Create a quality council and hold regular meetings
14. Repeat from step one
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 3.
Joseph Juran’s
Theory
A Romanian-born
American engineer and
management consultant.
He was an evangelist for
quality and quality
management, having
written several books on Joseph
those subjects. He was the Jura1n904- Moses
brother of Academy 2008
Award winner Nathan
Juran.
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 Joseph Juran’s Theory of Total Quality
management
> Joseph Juran is responsible for what has become
known as the “Quality Trilogy.”

> The quality trilogy is made up of quality planning,

quality improvement, and quality control.

> If a quality improvement project is to be successful,

then all quality improvement actions must be
carefully planned out and controlled.

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Juran’s Ten Steps to Quality Improvement
1. An awareness of the opportunities and needs
for improvement must be created

2. Improvement goals must be determined

3. Organization is required for reaching the goals

4. Training needs to be provided

5. Initialize projects
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Juran’s Ten Steps to Quality Improvement
6. Monitor progress

7. Recognize performance

8. Report on results

9. Track achievement of improvements

10. Repeat
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 The European Foundation for Quality
Management (EFQM) Model is based upon
nine criteria for quality management. There are
five enablers (critera covering the basis of what
a company does) and four results (criteria
covering what a company achieves). The result
is a model that refrains from prescribing any
one methodology, but rather recognizes the
diversity in quality management
methodologies.
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 The nine criteria as defined by the EFQM
Model
1. Focus on Results - pleasing company stakeholders
with results achieved by stakeholders is a primary
focus.

2. Focus on Customers - it is vital that a company’s

quality management leads to customer satisfaction.

3. Constancy of Purpose and Consistent

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 The nine criteria as defined by the EFQM
Model
4. Visionary Leadership

5. Process and Facts form the Management Focus -

Management breaks down everything into systems,
processes and facts for easy monitoring.

6. Training and Involving Employees - Employees

should receive professional development
opportunities and be encouraged to remain involved
in the company.
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 The nine criteria as defined by the EFQM
Model
7. Continuous Learning - everyone should be
provided with opportunities for learning on the job

8. Developing Partnerships - It is important to

encourage partnerships that add value to the
company’s improvement process

9. Social Responsibility of the Corporation - The

company should always act in a way where it is
responsible towards the environment and society at
large.
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 4.
Ishikawa’s Theory
A Japanese organizational
theorist and a professor in the
engineering faculty at the
University of Tokyo noted for
his quality management
innovations. He is considered
a key figure in the
development of quality
initiatives in Japan,
Kaoru
particularly the quality circle.
Ish19ik15a-w
He is best known outside 1989 a
Japan for the Ishikawa or
cause and effect, often used
in the analysis of industrial
processes.
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 Ishikawa’sTheory of Total Quality
management
> Creator of the last theory, Dr. Kaoru Isikawa is often
known for his namesake diagram.

> He also developed a theory of how companies should

handle their quality improvement projects.

> Ishikawa takes a look at quality from a human

standpoint.

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Ishikawa’s Seven Basic Tools for Quality
Improvement
1. Pareto Analysis - helps to identify the big
problems in a process.

2. Cause and Effect Diagrams - help to get to the

root cause of problems.

3. Stratification - analyzes how the information

that has been collected fits together.

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Ishikawa’s Seven Basic Tools for Quality
Improvement
5. Check Sheets - look at how often a problem
occurs.

6. Histograms - monitor variation.

7. Scatter Charts - demonstrate relationships

between a variety of factors.

8. Process Control Charts - helps to determine

what variations to focus upon.
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