The document provides an overview of total quality management (TQM), including its history and key figures like Deming. It discusses principles of TQM like customer focus, continuous improvement, and defines quality from different perspectives such as products, users, and manufacturing. The document also covers quality tools and approaches including control charts, quality circles, cause and effect diagrams, and Deming's system of profound knowledge.

1. OM-460: Total Quality Management
Introduction to TQM
Resource Person
Haris Aslam

2. History of Quality Management
• Skilled craftsmanship during Middle Ages
• Industrial Revolution: rise of inspection and
separate quality departments
• Statistical methods at Bell System
• Quality control during World War II
• Quality management in Japan

3. History of Quality Assurance
• Quality awareness in U.S. manufacturing industry
during 1980s: “Total Quality Management”
• Malcolm Baldrige National Quality Award (1987)
• Development of Quality Standards in Europe
• Quality in service industries, government, health
care, and education
• Current and future challenge: keep progress in
quality management alive

4. Definitions of Quality
• Product-based definition: quantities of product
attributes
• User-based definition: fitness for intended use
• Value-based definition: quality vs. price
• Manufacturing-based definition: conformance
to specifications

5. Total Quality Management
• People-focused management system
• Focus on increasing customer satisfaction and
reducing costs
• A systems approach that integrates organizational
functions and the entire supply chain
• Stresses learning and adaptation to change
• Based on the scientific method

6. Principles of Total Quality
• Customer and stakeholder focus
• Participation and teamwork
• Process focus and continuous improvement

7. Continuous Improvement
• Enhancing value through new products and
services
• Reducing errors, defects, waste, and costs
• Increasing productivity and effectiveness
• Improving responsiveness and cycle time
performance

8. Deming’s View of a
Production System
Suppliers of
materials and Design and
equipment Redesign
Consumer
Receipt and test research
of materials
Consumers
A
B Production, assembly
C inspection
D Distribution
Tests of processes, machines, methods
INPUTS PROCESSES OUTPUTS

9. Learning
• The foundation for improvement … Understanding
why changes are successful through feedback
between practices and results, which leads to new
goals and approaches
• Learning cycle:
– Planning
– Execution of plans
– Assessment of progress
– Revision of plans based on assessment findings

10. Quality and Profitability
Improved quality of Improved quality of
design conformance
Higher perceived Higher prices Lower
value manufacturing and
service costs
Increased market Increased
share revenues
Higher profitability

11. Three Levels of Quality
• Organizational level: meeting external customer
requirements
• Process level: linking external and internal
customer requirements
• Performer/job level: meeting internal customer
requirements

12. Quality and Personal Values
• Personal initiative has a positive impact on
business success
• Quality begins with personal attitudes
• Quality-focused individuals often exceed customer
expectations
• Attitudes can be changed through awareness and
effort (e.g., personal quality checklists)

13. Quality Guru’s
• Dr. Shewhart
• W. Edwards Deming
• Joseph M. Juran
• Philip B. Crosby
• Kaoru Ishikawa
• Genichi Taguchi

14. Dr. Shewhart
• Dr. Shewhart was the first person to encourage
the use of easy-to-use statistics to remove
variation
– ‘Dr. Walter Shewhart suggested two types of variation:
– Common (Chance) Causes
• Controlled variation that is present in a process due
to the very nature of the process.
– Special (Assignable) Causes
• Uncontrolled variation caused by something that is
not normally part of the process.

15. Dr. Shewhart
• Inventor of Control Charts
• Regular plotting of data on an SPC chart will tell if the process is
out-of-control (subject to special causes)
• Dr. Shewhart originated the PLAN, DO, STUDY,
ACT cycle for analysis of problems

16. Juran’s Quality Trilogy
• Managing for Quality
– Quality Planning: The process of understanding what
the customer needs and designing all aspects of a
system to meet those needs reliably.
– Quality Control: Used to constantly monitor
performance for compliance with the original design
standards.
• If performance falls short of the standard, plans are put into
action to deal quickly with the problem.
– Quality Improvement: Occurs when new, previously
un-obtained, levels of performance ~ Breakthrough
Performance ~ are achieved!

17. Phillip B. Crosby
• Quality is free . . . :
• “Quality is free. It’s not a gift, but it is free. What
costs money are the unquality things -- all the
actions that involve not doing jobs right the first
time.”

18. Philip B. Crosby
Absolutes of Quality Management:
• Quality means conformance to requirements
• Problems are functional in nature
• There is no optimum level of defects
• Cost of quality is the only useful measurement
• Zero defects is the only performance standard

19. Kaoru Ishikawa
– Two biggest contributions: Quality circles &
Cause & Effect Diagrams
– Focused on four areas to influence quality:
• Market-in Quality
• Worker Involvement
• Quality Begins and Ends with Education
• Selfless Personal Commitment

20. Dr. Ishikawa’s Cause and Effect
Diagram

21. Genichi Taguchi
• Pioneered a new perspective on quality based on
the economic value of being on target and
reducing variation and dispelling the traditional
view of conformance to specifications:
Loss No Loss Loss
0.480 0.500 0.520
Tolerance

22. Dr. W. Edwards Deming (1900-1993)
– The Father of Quality Management
– Strongly humanistic philosophy
– “Problems in a production process are due to flaws in
the design of the system, as opposed to being rooted
in the motivation or professional commitment of the
workforce”.
– Quality is maintained and improved when leaders,
managers, and the workforce understand and commit
to constant customer satisfaction through continuous
quality improvement.

23. Deming Chain Reaction
Improve quality
Costs decrease
Productivity improves
Increase market share with better
quality and lower prices
Stay in business
Provide jobs and more jobs

24. Deming’s System
of Profound Knowledge
• Appreciation for a system
• Understanding variation
• Theory of knowledge
• Psychology

25. Appreciation for a system
• Most organizational processes are cross-
functional
• Parts of a system must work together
• Every system must have a purpose
• Management must optimize the system as a whole

26. Variation
• Many sources of uncontrollable variation exist in
any process
• Excessive variation results in product failures,
unhappy customers, and unnecessary costs
• Statistical methods can be used to identify and
quantify variation to help understand it and lead to
improvements

27. Theory of Knowledge
• Knowledge is not possible without theory
• Experience alone does not establish a theory, it
only describes
• Theory shows cause-and-effect relationships that
can be used for prediction

28. Psychology
• People are motivated intrinsically and extrinsically
• Fear is demotivating
• Managers should develop pride and joy in work

29. Criteria for Performance
Excellence
• Leadership
• Strategic Planning
• Customer and Market Focus
• Information and Analysis
• Human Resource Focus
• Process Management
• Business Results

30. READING MATERIAL
Chapter 1: Introduction
Article: What does product quality really
mean