Chapter Three: Total Quality

Management And Iso-9000

 3.1. What is TQM?

• TQM is the integration of all functions and

processes within an organization in order
to achieve continuous improvement of the
quality of goods and services.
• The goal is customer satisfaction.

“ No doubt , humans are always deficient”

3.2. TQM requirements and Motivations

Requirements

System requirements
Management
Resource
Realization
Remedial
Motivations for implementing
• To improve operations
• To improve/create a quality management system
• To improve the consistency of quality
• To improve customer satisfaction
• To improve competitive posture
• To conform to customer requirements
 3.3. Various Approaches to TQM

The basic thrust of each of these is realizing

excellence.
 Some emphasize on the philosophy of TQM
and the role of management and employees in
being aware, committed and act.
 Some expect to use statistics more intensely.
 Some give an integrated approach.
 The approaches include:
Approaches to TQM

1. Deming’s Approach to TQM

2. Juran’s Approach to TQM
3. Crosby’s Approach to TQM
4. Feigenbaum’s Approach to TQM
5. Ishikawa’s Approach to TQM
 3.4 Deming’s Approach to TQM

His approach is summarized in his 14 points.

1. Create constancy of purpose toward improvement
2. Adopt a new philosophy, recognize that we are in a
time of change, a new economic age
3. Cease reliance on mass inspection to improve quality
4. End the practice of awarding business on the basis of
price alone
5. Improve constantly and forever the system of
production and service
6. Institute training
7. Improve leadership, recognize that the aim of
supervision is help people and equipment to do a
better job
 Deming’s Approach to TQM....Cont’d
8. Drive out fear
9. Break down barriers between departments
10. Eliminate slogans and targets for the workforce
such as zero defects
11. Eliminate work standards
12. Remove barriers that rob workers of the right to
pride in the quality of their work
13. Institute a vigorous program of education and
self-improvement
14. Put everyone to work to accomplish the
transformation
Note that the 14 points mentioned above are
about change
 Deming’s Approach to TQM....Cont’d

Using the above principles, Deming gave a

four step approach to ensure a purposeful
journey of TQM.
 The P-D-S-A Cycle

Plan
Identify problem. Develop plan for
improvement.

Do Act
Implement plan
on test basis Institutionalize improvement. Continue
cycle.

Study
Is the plan working?

9
 3.5 Juran’s Approach to TQM
• Juran uses his famous universal breakthrough sequences
to implement quality programs.
• A- proof of need: there should be a compelling need to
make changes
• B-Project identification: here what is to be changed is
identified. Specific projects with time frames and the
rescues allocation are decided.
• C-Organization’s with the top management’s
commitment is made in terms of assignment of persons,
responsibilities fixed.
• D- Diagnostic journey-each team will determine the
problems resulting from systematic causes or random or
deliberate causes. Root causes are ascertained with
utmost certainty.
 Juran’s Approach to TQM……..Cont’d

• E-Remedial action: this is the stage when

changes are introduced. Inspection, testing,
and validation are also included at this point.
• F- Holding on to the gains: the above steps
results in beneficiary results. Having records for
all actions consequences will help in further
improvements. The actions that resulted in the
benefits derived should be the norm for
establishing standards.
 Juran’s Approach to TQM……..Cont’d

The Juran Trilogy to achieve TQM are:

1. Quality planning: Quality is the result of a good planning
considering the needs of both internal and external
customers and developing processes to meet them.
2. Quality control: Quality is built into the system of
manufacture, inputs and processes that are on stream
like raw material, spare parts, labor, machine
maintenance, training, warehousing, inspection
procedures, packaging, etc.,
They have to be made to follow standards and control
exercises to make sure mistakes do not occur often and
if they are, they have to be corrected at source.
 Juran’s Approach to TQM……..Cont’d
3. Quality improvement: Quality improvement
measures are essential to keep quality culture
alive. Newer methods will be found, some
operations can be eliminated, if improved
technology is available.

In short as experience is gained things can always

be done better. It is for the management to take
the initiative and encourage the employees to be
on the look out for opportunities for improvement.
 3.6 Crosby’s Approach to TQM

 Crosby believed that in the traditional trade-off

between the cost of improving quality and the cost
of poor quality, the cost of poor quality is
understated.
The cost of poor quality should include all of the
things that are involved in not doing the job right
the first time.
Crosby coined the term zero defects and stated,
''There is absolutely no reason for having errors or
defects in any product or service.“
He also lays emphasis on top management
commitment and responsibility for designing the
system so that defects are not inevitable.
Crosby’s Approach to TQM…..Cont’d
His absolutes can be listed as under:
i. Quality is conformance to requirements, not
‘goodness’
ii. Prevention, not appraisal, is the path to quality
iii. Quality is measured as price paid for non-
conformance and as indexes
iv. Quality originates in all functions. There are no
quality problems, it is the people, design, and
process that create problems.
 Crosby’s Approach to TQM…..Cont’d
 The ingredients are:
1. Integrity: honesty and commitment to produce
everything right first time, every time
2. Communication: flow of information between
departments, suppliers, customers help in
identifying opportunities.
3. Systems and operations: these should bring in
a quality environment so that nobody is
comfortable with anything less than the best.
 3.7 Feigenbaum’s Approach to TQM
An effective system for integrating the quality
development, quality-maintenance, and quality-
improvement efforts of the various groups in a
firm so as to enable marketing, engineering,
production, and service at the most economical
levels which allow for full customer satisfaction.
He viewed quality not as a set of tools but as a
total field that integrated the processes of a
company. His work in how people learn from each
other's successes led to the field of cross-
functional teamwork.
Feigenbaum’s Approach to TQM…Cont’d
He claimed that effective quality management
consists of four main stages, described as follows:
1. Setting quality standards;
2. Appraising conformance to these standards;
3. Acting when standards are not met;
4. Planning for improvement in these standards.
 3.8 Ishikawa’s Approach to TQM
 Ishikawa (1985) argued that quality management
elongates beyond the product and circumscribed
after-sales service, the quality of management, the
quality of individuals and the firm itself.
He holds out for that the success of a firm is
highly dependent on behaving towards quality
improvement as a never-ending exploration.
A commitment to continuous improvement
can ensure that people will never stop learning.
 He supported idea of employee participation
as the key to the successful implementation of
TQM.
 Ishikawa’s Approach to TQM
Quality circles, he believed, are an important
vehicle to achieve this. Like all other approaches
he emphasized the importance of education,
stating that quality begins and ends with it.
Ishikawa’s concept of TQM contains the
following six fundamental principles:
1. Quality first-not short-term profits first;
2. Customer orientation-not producer
orientation;
3. The next step is your customer-breaking
down the barrier of sectionalism;
 Ishikawa’s Approach to TQM….Cont’d
4. Using facts and data to make presentations-
utilization of statistical methods;
5. Respect for humanity as a management
philosophy, full participatory management;
6. Cross-functional management.
 Summary of TQM Approaches
Even though their approaches to TQM are not
totally the same, they do share some common
Points which are summarized as follows:
1. It is management’s responsibility to provide
assurance, guidance, authorization,
support, and the suitable that something
which holds on structure to technical and
human processes.
2. The plan of action, policy, and firm-wide
judgement activities are given priority to.
 Summary.................Cont’d

3. The importance of employee education and

training is to give priority in changing employees’
beliefs, behaviour, and attitudes; improving
employees’ abilities in carrying out their duties
properly.
4. Employees should be recognized and
rewarded for their quality improvement efforts.
5. It is very important to control the processes
and improve quality system and product design.
The importance is on prevention of product
defects, not inspection after the event.
 Summary.................Cont’d
6. Quality is an orderly firm-wide activity from
suppliers to customers. All functional activities,
such as marketing, design, engineering,
purchasing, manufacturing, checking, shipping,
accounting, installation and service, should be
involved in quality improvement efforts.
3.9. Some Quality and TQM Related Terms

Quality is so important globally that the world is

uniting around a single quality standard, ISO 9000.
ISO 9000 is the only quality standard with
international recognition.
 In 1987,91 member nations (including the U.S,)
published a series of quality assurance standards,
known collectively as ISO 9000. The U.S., through
the American National Standards Institute (ANSI),
has adopted the ISO 9000 series as the ANSI (ASQ)
Q9000 series.
 3.10. Relationship between ISO 9000 and Quality
• Quality is so important globally that the world is uniting around a
single quality standard, ISO 9000.

ISO 9000 is the only quality standard with international recognition.

• 1979 the British Standard Institute (BSI) submitted a formal proposal

to the International Standards Organization (ISO) in Geneva

• The first edition of ISO 9000 standards was published in 1987 (these
standards were based mainly on UK BS-5750 standards, and
Canadian standards, CSA-Z299)

 Technical specifications and criteria to be used as rules, guidelines,

or definitions of characteristics to ensure that materials, products,
processes, and services are fit for their purpose.
ISOs.........Cont’d
The focus of the standards is to establish quality
management procedures, through leadership,
detailed documentation, work instructions, and
recordkeeping.
These procedures, we should note, say nothing
about the actual quality of the product-they deal
entirely with standards to be followed.
To become ISO 9000 certified, organizations go
through a 9- to 18-month process .
ISOs.........Cont’d
To do business globally being listed in the ISO
directory is critical.
As of 2009, there were over one million
certifications awarded to firms in 175 countries.
About 40,000 U.S. firms are ISO 9000 certified.
Over 200,000 Chinese firms have received
certificates.
 ISOs.........Cont’d
ISO upgraded its standards in 2008 into more
of a quality management system, which is
detailed in its lSO 9001:2008 component.
Leadership by top management and customer
requirements and satisfaction play a much larger
role, while documented procedures receive less
emphasis under ISO 9001: 2008.
 3.12. Principles of ISO 9000
• 1. Customer Focus-Government agencies must know who
their customer is and make an effort to provide products and
services that satisfy their need– Continues improvement.

• 2. Leadership & Commitment by Top Management-Top

management should be involved directly in upgrading quality
and ensuring that the objectives of the department are
achieved.
• Involvement of People

• 3. Quality Assurance; the objective can be achieved by

adhering to clearly laid quality standards for products, work
processes and input used• Support in turn by quality
inspection, tracing sources of flaws and taking remedial
action
 Principles of ISO 9000 cont.….
• 4. Strategic Planning: Management should regularly
plan and take appropriate measures to improve the
work processes to ensure the quality of the final output
is on the rise all the time in line with the increasingly
complex needs of customer. Team Work Teamwork is
effective in contributing creative and innovative ideas
and implementing improvement successfully.

• 5.Training And Recognition- Building a Sense of

Ownership Among Worker. This is strengthen
awareness, commitment as well as to instill a sense of
responsibility among workers in upgrading quality in
their department.
 3.13. Benefits of ISO 9000

• Enhance competitive position

 Improve customer satisfaction and confidence
 Saving in time and resources (reduce wastage
& work-over)
 Greater organizational transparency
 Improve the quality system
END OF CHAPTER 3