Chapter 1

The Total Quality Approach to

Quality Management:
Achieving Organizational
Excellence

Objectives
After reading the chapter and
reviewing the materials presented
the students will be able to:
Define Quality?
Understand Key Elements of Total
Quality
Know the Keys to Total Quality
Success

What is Quality
Quality is a dynamic state associated with
products, services, people, processes, and
environments that meets or exceeds
expectations and helps produce superior
value.
The dynamic state element speaks to the fact
that what is considered quality can and often
does change as time passes and
circumstances are altered.
The superior value element acknowledges
that quality is a key element in providing
superior value ( superior quality, cost, and
service).

The Total Quality Approach

Defined
Total quality is an approach of doing business that
attempts to maximize the competitiveness of an
organization through the continual improvement of
the quality of its products, services, people,
processes, and environments.
The distinctive characteristics of total quality are:
customer focus, obsession with quality, use of
scientific approach in decision making and problem
solving, long term commitment, teamwork, continual
process improvement, bottom up education and
training, freedom through control, unity of purpose,
and employee involvement and empowerment.

Key Elements of Total

Quality

1. Strategically based: Comprehensive strategic plan that contains at least the following elements:
vision, mission, broad objectives, and activities that must be completed to accomplish the broad
objectives.
2. Customer Focus: External customers define the quality of the product or service delivered.
Internal customers help define the quality of the people, processes, and environments associated
with the products or services.
3. Obsession with Quality: All personnel at all levels approach all aspects of the job from the
perspective of How can I do this better?
4. Scientific Approach: Hard data are used in establishing benchmarks, monitoring performance,
and making improvements.
5. Long Term Commitment: Whole new way of doing business that requires an entirely new
corporate culture.
6. Teamwork: Energy should be focused on improving quality and in turn external competitiveness.
7. Continual Process Improvement: To continually improve products and services it is necessary
to continually improve systems.
8. Education and Training: People who know how to work hard also learn how to work smart.
9. Freedom through Control: Controls such as scientific methodologies lead to freedom by
empowering employees to solve problems within their scope of control.
10. Unity of Purpose: It means that all employees work toward a common goal.
11. Employee Involvement and Empowerment: Structuring work that allows employees to make
decisions concerning the improvement of work processes within well specified parameters.

Rationale for the Total

Quality Approach to Doing
Business
Total quality is not just one individual concept.

It is a number of related concepts pulled together to

create a comprehensive approach to doing business.
Many people contributed to meaningful ways to the
development of the various concepts that are known
collectively as total quality.
Three major contributors are W. Edward Deming,
Joseph M. Juran, and Philip B. Crosby.
To these three, many would add Armand V.
Feigenbaum and a number of Japanese experts, such
as Shigeo Shingo.

The Deming Cycle

1. Plan: Conduct consumer research and use it in
planning the product.
2. Do: Produce the product.
3. Check: Check the product to make sure it was
produced in accordance with the plan.
4. Act: Market the product. 5. Analyze: Analyze
how the product is received in the marketplace in
terms of quality, cost, and other criteria.

Demings Fourteen points

1. Create constancy of purpose towards the improvement of products and services in

order to become competitive, stay in business, and provide jobs.
2. Adopt a new philosophy. Management must learn that it is a new economic age and
awaken to the challenge, learn their responsibilities, and take on leadership for a change.
3. Stop depending on inspection to achieve quality. Build in quality from the start.
4. Stop awarding contracts on the basis of low bids.
5. Improve continuously and forever the system of production and services, to improve
quality and productivity, and thus constantly reducing costs.
6. Institute training on the job.
7. Institute leadership. The purpose of leadership is to help people and technology work
better.
8. Drive out fear so that everyone may work effectively.
9. Break down barriers between departments so that people can work as a team.
10. Eliminate slogans, exhortations, and targets for the workforce. They create adversarial
relationships.
11. Eliminate quotas and management by objectives. Substitute leadership.
12. Remove barriers that rob employees of their pride of workmanship.
13. Institute a vigorous program of education and self improvement.
14. Make the transformation everyones job and put everyone to work on it.

Demings Seven Deadly

Diseases

1. Lack of constancy of purpose to plan products and services that

have a market sufficient to keep the company in business and provide
jobs.
2. Emphasis on short term profits. Short term thinking that is driven by
a fear of unfriendly takeover attempts and pressure from bankers and
shareholders to produce dividends.
3. Personal review systems for managers and management by
objectives without providing methods or resources to accomplish
objectives. Performance evaluations, merit ratings, and annual
appraisals are all a part of this disease.
4. Job hopping by managers.
5. Using only visible data and information in decision making with little
or no consideration given to what is not known or cannot be known.
6. Excessive medical costs.
7. Excessive costs of liability driven up by the lawyers that work on
contingency fees.

Jurans Contributions

Jurans Three Basic Steps to Progress: 1. Achieve structured improvements on a continual

basis combined with a dedication and a sense of urgency. 2. Establish an extensive training
program. 3. Establish commitment and leadership on the part of higher management.
Jurans Ten Steps to Quality Improvement: 1. Build awareness of both the need for
improvement and opportunities for improvement. 2. Set goals for improvement. 3. Organize to
meet the goals that have been set. 4. Provide Training. 5. Implement projects aimed at solving
problems. 6 . Report progress. 7. Give recognition. 8. Communicate results. 9. Keep score. 10.
Maintain momentum by building improvements into the companys regular systems.
The Pareto Principle: Organizations should concentrate their energy on eliminating the vital
few sources that cause majority of the problems.
The Juran Trilogy: The three primary managerial functions: 1. Quality Planning: A. Determine
who the customers are. B. Identify customer needs. C. Develop products with features that
respond to customer needs. D. Develop systems and processes that allow the organization to
produce these features. E. Deploy the plans to operational levels. 2. Quality Control: A. Assess
actual quality performance. B. Compare performance with goals. C. Act on the difference
between performance and goals. 3. Quality Improvement: A. Develop the infrastructure
necessary to make annual quality improvements. B. Identify specific areas in need of
improvement and implement improvement projects. C. Establish a project team with
responsibilities for completing each improvement project. D. Provide teams with what they need
to be able to diagnose problems to determine root causes, develop solutions, and establish
controls that will maintain gains made.

Crosbys Contributions

Crosbys 14 steps to quality improvement:

1. Make it clear that management is committed to quality for the long term.
2. Form cross departmental quality teams.
3. Identify where current and potential problems exist.
4. Assess the cost of quality and explain how it is used as a management tool.
5. Increase the quality awareness and personal commitment of all employees.
6. Take immediate action to correct problems identified.
7. Establish a zero defects program.
8. Train supervisors to carry out their responsibilities in the quality program.
9. Hold a Zero defects Day to ensure all employees are aware there is a new direction.
10. Encourage individuals and teams to establish both personal and team improvement
goals.
11. Encourage employees to tell management about obstacles they face in trying to
meet quality goals.
12. Recognize employees who participate.
13. Implement quality councils to promote continual communication.
14. Repeat everything to illustrate that quality improvement is a never ending process.

Common Errors Made When

Starting Quality Initiatives
1. Senior management delegation and poor leadership: Delegating
responsibility to a hired expert rather than getting everyone involved.
2. Team mania: Rushing and putting everyone in teams before learning
has occurred and the corporate culture has changed will create problems
rather than solve problems.
3. Deployment process: Some organizations develop quality initiatives
without concurrently developing a plan for integrating them into all
elements of the organization (operations, budgeting, marketing, etc.).
4. Taking a narrow, dogmatic approach: Even the experts encourage
organizations to tailor quality programs to their individual needs.
5. Confusion about the differences among education, awareness,
inspiration, and skill building: In order for the people to do their part
in making the total quality approach work, they must have the skills.
Helping them develop the skills must be a part of the transformation
process.

Trends Affecting the Future

of Quality Management
Increasing global competition: More and better
competition from emerging industrialized nations.
Increasing customer expectations: Customers
want excellent product or service, accurate billing,
reliable delivery, after purchase support, and social
responsibility.
Opposing economic pressures: To continually
improve quality while simultaneously reducing
prices.
New approaches to management: Successful
companies have learned that you manage budgets,
but lead people.

Why Some Quality

Initiatives Fail
1. Inadequate human resource
development and management.
2. Lack of planning for quality.
3. Lack of leadership for quality.
4. Inadequate resources for quality.
5. Lack of customer focus.

Summary

Quality is a dynamic state associated with products, services, people, processes,

and environments that meets or exceeds expectations and helps produce superior
value.
Total quality is an approach of doing business that attempts to maximize the
competitiveness of an organization through the continual improvement of the
quality of its products, services, people, processes, and environments.
Key Elements of Total Quality: 1. Strategically based, 2. Customer Focus, 3.
Obsession with Quality, 4. Scientific Approach, 5. Long Term
Commitment, 6. Teamwork, 7. Continual Process Improvement, 8.
Education and Training, 9. Freedom through Control, 10. Unity of
Purpose, 11. Employee Involvement and Empowerment.
The Deming Cycle: 1. Plan: Conduct consumer research and use it in planning
the product. 2. Do: Produce the product. 3. Check: Check the product to make
sure it was produced in accordance with the plan. 4. Act: Market the product. 5.
Analyze: Analyze how the product is received in the marketplace in terms of
quality, cost, and other criteria.
Trends Affecting the Future of Quality Management: Increasing global
competition, Increasing customer expectations, Opposing economic pressures,
and New approaches to management.

Home Work
Answer Questions 1, 2, 3, 10 on
page 23.
1. Define the term quality.
2. What is total quality?
3. List key elements of total quality.
10. Explain the trends that are
affecting the future of quality
management.