Quality management provides a framework for constant quality improvement to ensure companies build and launch the best possible products and services. Quality management functions as both a perspective and an approach to increasing customer satisfaction, cutting costs, and eliminating errors.

1. Chapter 3
Principles of Total Quality - Integration
By
Prof. Nazrul Islam, PhD
Canadian University of Bangladesh

2. Topics to be Covered
1. Principles of Total Quality-Integration
2. Types of Quality Efforts
3. The Baldrige Awards
4. Terminology of Quality Management

3. Principles of Total Quality
In summary, the above comments are those which several
authors have proposed – sets of principles for embedding
a focus on quality into the very fabric of the organization,
rather than seeing quality as something added on, or
reflected only in the final inspection of manufactured
goods. Deming, Juran, and Philip Crosby (author of the
book Quality is Free, 1979) all developed sets of
principles, which have much in common. A representative
set reads as follows:
1. Poor quality is the responsibility of management and
the system, not of the workers;
2. Build into the organization a desire for improvement;

4. Principles of Total Quality, Contd.,
3. Strive for continuous improvement;
4. Seek out and solve problems;
5. Break down barriers between departments;
6. Focus on quality, not on production numbers;
7. Provide education and training;
8. Report and celebrate progress -- keep score;
9. Remove barriers to pride of workmanship;
10. Maintain momentum -- build continuous
improvement into all systems and processes
of the organization.

5. Types of Quality Efforts
Deming identified three types of quality essential to the
production of goods and services which meet the needs of
customers, at an acceptable price, and having a
predictable degree of uniformity and dependability. They
are (1) quality of design or redesign, (2) quality of
conformance, and (3) quality of performance.
1. Quality of design develops products from a customer
perspective, aiming to yield products which are suited to
the needs of the market, at a given cost. Needs are
determined by consumer research and by analysis of
feedback from salespersons (this is called sales call
analysis) who are in regular contact with customers.

6. Types of Quality Efforts, Contd.,
Most decisions around redesign of goods and services are made
on the basis of feedback from customers, often gathered by
salespersons or by surveys of customers after purchase.
Anybody who has called a financial institution for information on
a financial product in North America, such as a loan or an
investment, has probably heard the recorded voice warning that
‘this call may be recorded or monitored to improve customer
service.’ This is data collection for the purpose of quality
redesign. Similarly, internal employee surveys on job
satisfaction or stress, or the evaluation of supervisors, are all
data collection directed at improvement in management policy
(through redesign of roles and responsibilities and
performance). Service call analysis is also a type of data
collection for quality redesign; common problems resulting in
service calls are obvious targets for re-examination of product
or service features.

7. Types of Quality Efforts, Contd.,
2.Quality of conformance refers to the ability of an organization
to produce goods or services with a predictable uniformity and
dependability at a reasonable cost, and which conform with
the quality characteristics determined in the quality of design
studies. In other words, the goal in quality of conformance
studies is to reduce the variability in products with respect to
specifications.
3.Quality of performance focuses on performance of the product
or service in the marketplace. It returns us full-circle to the
customer! The focus is on how satisfied customers are with the
performance of the good or service, in actual use. Tools used to
measure quality of performance include analysis of service calls,
customer satisfaction surveys, analysis of reasons why
consumers do not purchase the company's goods, and
maintenance and reliability studies.

8. The Baldrige Awards
The Malcolm Baldrige National Quality Awards, named after a
Secretary of State who championed quality in industry, were
established by the U.S. Congress in 1987. The Awards
were a response to the perception that U.S. industry was falling
behind international competitors. These awards have had a
significant impact on U.S. industry and are now firmly
established in much of the industrial world as standards for
quality.
Organizations are evaluated on seven broad categories, each
consisting of several subcategories (or ‘items’ in the Baldrige
terminology), with varying weights. The core values of the
Award, expressed in its categories alongside their corresponding
points in the system, are featured on the following page.

9. The Baldrige Awards, Contd.,
Categories Point Values
1. Leadership 120
Organizational leadership 80
Public responsibility and citizenship 40
2. Strategic Planning 85
Development 40
Deployment 45
3. Customer and Market Focus 85
Customer and market knowledge 40
Customer relationships and satisfaction 45
4. Information and Analysis 90
Measurement and analysis of performance 50
Information management 40
5. Human Resource Focus 85
Work systems 35
Employee education, training and development 25
Employee well-being and satisfaction 25
6. Process Management 85
Product and/or service processes 45
Business processes 40
Support processes 15
7.
Business Results 450
Customer-focused results 125
Financial and market results 125
Human resources results 80
Organizational effectiveness results 120
Total Points 1000

10. The Baldrige Awards, Contd.,
As you can see, the most important of the seven categories is
the sum of the results of the other six categories – the outcome
that is achieved. This outcome is four-fold: the customer
reaction, the resulting sales and financial gains, employee
reaction, and the effectiveness of the organization itself.
Leadership plays a key role. Not only is the internal leadership
important, but the Award specifies that the company must be
socially responsible and be a good citizen. One can only
assume that such behaviors as being sensitive to diversity,
environmentally friendly, assisting individuals who are
disadvantaged (e.g., literacy, the Special Olympics) might be
considered.

11. The Baldrige Awards, Contd.,
The remaining five categories – strategic planning, focus on the
customer and the markets, on employee issues, on the internal
processes, and on information analysis and management -- are
split about equally. Further information is available about the
Awards on the National Institute of Standards and Technology
(NIST) Web site at:
http://www.quality.nist.gov.
The cost of applying for a Baldrige Award is $4,500 (US) for
large businesses, $2,000 for small businesses, and as little as
$300 for nonprofit organizations.

12. The Baldrige Awards, Contd.,
In Japan, the Deming Prize is awarded to companies that make
outstanding progress in quality. Canada has its Awards for
Excellence program. A large number of other countries,
including Australia, Brazil, and India have adopted the Baldrige
criteria. The European Quality Award is modeled after the
Baldrige Award.
The Baldrige Award is probably the most important excellence
award in the world. NIST has distributed millions of copies of
the criteria. It also encourages organizations to copy the
requirements for their own and others' use. Although many
organizations cannot afford the costs associated with the
improvements and documentation that are required by the
Award criteria, they nonetheless use it as a source of
information for improving their own quality and excellence.

13. Terminology of Quality Management
The large number of terms and acronyms that have developed
can be confusing and those who study quality management
should be familiar with these. Some are introduced here.
Others will be defined in the appropriate Blocks.
American Society for Quality Control (ASQC) is the
organisation that officially represents those working in the area
of quality management in Canada and the United States. Its
website address is: http://www.asq.org.
Benchmarking is the process of continually comparing an
organization's processes with other institutions that are deemed
to be best-in-class.

14. Terminology of Quality Management, Contd.,
Continuous improvement is an ongoing commitment to
improve product and/or service quality by constantly assessing
and adjusting the processes and procedures used to make
those products or deliver those services.
Cost of quality is an idea popularized by Philip B. Crosby in his
books Quality is Free. The Art of Making Quality Certain (1979)
and Quality Without Tears. The Art of Hassle-free
Management (1984). Crosby's idea is that lack of quality costs;
quality saves the company money.
Deming Prize is an award given in Japan to organizations that
is somewhat equivalent to the Baldrige Awards. A large
proportion of winners have produced innovations that combine
statistical and engineering methods and improve cost and
quality through product and process optimization redesign.

15. Terminology of Quality Management, Contd.,
Employee involvement is the participation of all employees,
usually in teams, as problem solvers and solution implementers,
in the improvement of quality within the workplace. The term
had its beginning with the Ford Motor Company. The same
activity is known by many other names. The best known of
these are quality circles, and quality control circles. In
addition to the participants, there is usually a team leader, a
facilitator, and a trainer. Often the facilitator and trainer are the
same person. Many organizations employ an outside
consultant to assist them with the facilitation and training
processes.

16. Terminology of Quality Management, Contd.,
Malcolm Baldrige National Quality Award is a set of awards
established in 1987 by the US Government to honor Malcolm Baldrige
following his death in a plane crash. Baldrige was a former Secretary of
State who had a passion for improving the quality of US industry.
The award was established to honour ‘companies for their
chievements in quality and business performance and to raise
awareness about the importance of quality and performance excellence
as a competitive edge.’ (National Institute for Standards and
Technology, 2003)
Total Quality Control (TQC) was used first by Japanese Industrial
Standards (JIS) to define quality control as: ‘A system of production
methods which economically produces quality goods or services
meeting the requirements of consumers.’ (Ishikawa, 1985, p. 44). It
involves development, design, production and service of a product in
such a way that is ‘most economical, most useful, and always
satisfactory to the consumer.’ (Ishikawa, 1985, p. 44).

17. Terminology of Quality Management, Contd.,
Feigenbaum (1961) extended this concept to ‘cost of quality.’ He drew
attention to the fact that quality improvements gained in
manufacturing could be lost in other parts of the organization. The
manufacturing department could not have the sole responsibility for
product quality. All facets in the value-chain had to be considered,
including design, marketing, distribution, and delivery. Even the retailer
or wholesaler had to assume a role in this process. On the other side of
the coin, the problems in quality that originated in manufacturing had
costs for other related departments. According to Feigenbaum, the ten
crucial benchmarks for total quality success are that:
1. Quality is a company-wide process.
2. Quality is what the customer says it is.
3. Quality and cost are a sum, not a difference.
4. Quality requires both individual and team zealotry.
5. Quality is a way of managing.

18. Terminology of Quality Management, Contd.,
6. Quality and innovation are mutually dependent.
7. Quality is an ethic.
8. Quality requires continuous improvement.
9. Quality is the most cost-effective, least capital-intensive route to
productivity.
10. Quality is implemented with a total system connected with
customers and suppliers.
Total Quality Management (when spelled with initial capitals), like
Total Quality Control, is a proprietary product developed to assist
managers in implementing a quality management program in their
organizations. In particular, it is an organizational-wide strategy for
improving product and service quality. It is not a tool or technique but
a philosophy for management that is characterized by three principles:
customer focus and satisfaction, continuous improvement, and
teamwork. Without the capitals, the term refers to any strategy
that uses these three principles to improve quality.

19. Thanks