Chapter 2 4.tqm

BUS 111 OPERATIONS MANAGEMENT (TQM) – PROF. CYNTHREN L.
BERNABE
CHAPTER 2
Strategic Dimensions of Quality
OBJECTIVES:
After reading this chapter, the student should be able to:
 Identify the eight dimension of product quality.
 Name the five dimensions of service quality.
 Differentiate the dimensions of product and service quality.
Quality is multidimensional. Product and service quality are comprised of a number of dimensions which determine
how customer requirements are achieved. Therefore, it is essential that companies consider the entire dimension that may
be important to their customers. Evaluating all dimensions of a product or service helps to determine how well the service
is given against meeting the customer requirements.
DIMENSIONS OF PRODUCT OUALITY
Performance (Will the product do the intended job?)

Performance consists of the primary operating characteristics of a product. For an automobile, performance would
include traits like acceleration, handling, cruising speed, and comfort; for a television set, performance means sound and
picture clarity, and the ability to receive distant stations.
This dimension of quality involves quantifiable attributes, so brands can typically be ranked objectively on
individual aspects of performance. Overall performance rankings, however, are harder to develop, particularly when they
entail benefits that not all consumers require.
Features (What does the product do?)

Features are added characteristics that boost the attraction of the product or service to the user. They are all the
qualities and characteristics of a product like its size, shape, materials, and its functionalities and capabilities. Some
examples of features include free drinks on a plane, permanent-press cycles on a washing machine, and automatic tuners on
a color television set.
Features are often a secondary aspect of performance. Features are the "bells and whistles" of products and services,
those characteristics that add values to their basic functioning. The line separating primary performance characteristics from
secondary features is often not easy to illustrate.
Reliability (How often does the product fail?)

Reliability is the likelihood that a product will not fail inside a particular time period. This is a key element for users
who need the product to work with no failures. This dimension reflects the likelihood of a product malfunctioning or failing
within a specified time period.
Reliability normally becomes more significant to consumers as downtime and maintenance become more
expensive. Farmers, for instance, are especially sensitive to downtime during the short harvest season. Reliable equipment
can mean the difference between a good year and spoiled crops. However, consumers on other markets are more familiar
than ever to product reliability too. Computers and copying machines certainly compare on reliability.
Mean time between failures (MTBF) is literally the average time elapsed from one failure to the next. Usually
people think of it as the average time that something works until it fails and needs to be repaired (again). For instance, the
MTBF for a particular type of automatic nozzle on gas pumps might be 18 months. This means that on the average, a failure
will occur every 18 months. The MTBF is beneficial in creating preventive maintenance policies.
Mean Time between Failures = (Total up time) / (number of breakdowns)
Failure rate is the frequency with which a component fails, expressed in failures
per unit of time. It is often denoted by the Greek letter A (lambda). The failure rate of a system usually depends on time,
with the rate varying over the life cycle of the system. For example, an automobile's failure rate in its fifth year of service
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BUS 111 OPERATIONS MANAGEMENT (TQM) – PROF. CYNTHREN L. BERNABE
may be many times greater than its failure rate during its first year of service. One does not expect to replace an exhaust
pipe, overhaul the brakes, or have major transmission problems in a new vehicle. Failure rates are important factors in the
insurance, finance, commerce and regulatory industries and fundamental to the design of safe systems in a wide variety of
applications.
Failure rate = Number of failures/number of units tested X total length of time
Conformance (Is the product made exactly as the designer intended?)

Conformance depicts to what extent a product's design and operating characteristics meet established standards.
This dimension owes the most to the traditional approaches to quality pioneered by experts like Juran.
All products and services involve specifications of some sort. When products are
developed, these specifications are set and a target is set, for instance the materials used or the dimension of the product.
Not only the target but also the tolerance (the range of permitted deviation from the target) is defined. One problem with
this approach is that there is little interest in whether the specifications have been met exactly as long as the tolerance limits
are met.
On the one hand, this can lead to the so-called “tolerance stack-up”. When two or more parts are to be fit together,
the size of their tolerances often determine how well they will match. Should one part fall at a lower limit of its specification
and a matching part at its upper limit, a tight fit is unlikely. The link is likely to wear more quickly.
Source; https://hbr.org/1987/11/competing-on-the-eight-dimensions-of-quality
Figure 4 Two Approaches to Conformance
This problem can be addressed by taking a different approach to measuring quality. Instead of measuring a simple
conformance to specifications, the degree to which parts or products diverge from the ideal target is measured. Using this
approach, process 1 (See Figure 4) is better even though some items fall beyond specification limits. The traditional
approach would have favored process 2 because it produces more items within the specification limit. It was demonstrated
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that the problem of "tolerance stack-up" is worse when the dimensions of parts are more distant from the target than when
they cluster around it, even if some parts fall outside the tolerance. This approach requires a fresh look at the common
process quality factor of "defect rate”, to consider the fact that two parts may each pass the "tolerance test" separately but
be unusable when the attempt is made to join them together.
In service businesses, measures of conformance normally focus on accuracy and timeliness and include counts of
processing errors, unanticipated delays and other frequent mistakes.
Durability (How long does the product last?)

Durability is a measure of how much use a person gets from a product before
it breaks down to such a point that replacement makes more sense than continual repair.
It measures the length of a product's life. When the product can be repaired, estimating durability is more
complicated. The item will be used until it is no longer economical to operate it. This happens when the repair rate and the
associated costs increase significantly. Technically, durability can be defined as the amount of use one gets from a product
before it deteriorates. After so many hours of use, the filament of a light bulb burns up and the bulb must be replaced. Repair
is impossible. In other cases, consumers must weigh the expected cost, in both pesos and personal inconvenience, of future
repairs against the investment and operating expenses of a newer, more reliable model.
Durability testing allows the assessment of a product's response to the physical
and climatic hazards that may occur throughout the operational life of the product. This testing provides recognition of
compliance, analysis and resolution of damage issues, and assurance of reliability and durability. There three types of
durability testing which are:
1. Vibration testing - In vibration testing, the vibration environment to which products will be exposed to in real use
is reproduced. Products are tested in this environment to judge their durability or check for improvements. There
are two types of vibration testing;
a. Vibration Experiment - Vibration testing that is used to test a sample or representative model of volume production.
It is used to improve the product design.
b. Vibration Stress Screening - All production products are tested to eliminate faulty units and approved good units.
It may be compulsory in certain industries.
Vibration Testing in a Car
Vibration is inseparable from a car’s motion. There is a lot of influence from vibration in long term driving
and off-road driving. Observation for durability and influence of vibration is an important process to obtain the
reliability of products.
All of the possible environments that a car will experience in its lifetime are reproduced during vibration
testing.
Investigations occur for vibration damping and, motion characteristics of the tire, car frame and car body.
Investigation also occurs into the influence of vibration on car electronics, such as radios and stereos. Also, simulation
testing of vehicle seats and safety devices is performed.
Source; https://www.imv.co.jp/e/pr/story/main03_1.php
2. Shock tests - Shock testing replicates events to determine if structures can withstand sudden applied forces.
Shocks are characterized by their short duration and sudden occurrence.
3. Climatic testing - Materials can deteriorate over time, ageing prematurely due to either high or low temperature
extremes, while humid conditions may lead to condensation which can be damaging to biological items, industrial
products, materials, and electronic devices and components. A climatic test makes use of an environmental test
chamber which artificially replicates the conditions under which machinery, materials, devices or components
might be exposed. It is also used to accelerate the effects of exposure to the environment, sometimes at conditions
not actually expected.
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Source:
http://www.hitekpower.com/eng/Product-Compliance
https//ace.uiot.ca/about_ace/core_research_facility/climatic-wind-tunnel.php
Serviceability (How easy is it to repair the product?)
Serviceability involves the consumer's ease of obtaining repair service like access to service centers and/or ease of
self-service; the responsiveness of service personnel like the ease of getting an appointment and willingness of repair
personnel to listen to the customer; and the reliability of service like whether the service is performed right the first time.
Competence and ease of repair is the speed with which the product can be put into service when it breaks down, as well as
the competence and the behavior of the service personnel.
Consumers are concerned not simply about a product breaking down but also about the time before service is
brought back, the timeliness with which service appointment are reserved, the nature of transactions with service personnel,
and the frequency with which service calls or repairs fall short to correct outstanding problems. In those cases where
problems are not right away resolved and complaints are filed, a company's complaint handling procedures are also possible
to affect customer's final assessment of product and service quality.
Some variables of serviceability reflect differing personal standards of acceptable service. Others can be measured
quite objectively. Customers may continue to be displeased even after completion of repairs. How these complaints are
managed is essential to a company's reputation for quality and service. Ultimately, profitability is likely to be affected as
well. Companies vary extensively in their techniques to complaint handling and in the value, they attach to this element of
serviceability. Some do their best to resolve complaints; others use legal tricks, the silent treatment and similar strategies to
refuse displeased customers. For instance, lately, General Electric, Procter & Gamble and other companies have sought to
prevent consumer discontent by installing toll-free telephone hot lines to their customer relations departments.
Aesthetics (What does the product look like?)

Aesthetics means how a product looks, feels, sounds, tastes, or smells. It is obviously an issue of personal judgment
and an indication of individual preferences. Though there emerge to be some patterns in consumers' rankings of products
with taste as the starting point. High quality was most often associated with "rich and full flavor, tastes natural, tastes fresh,
good aroma, and looks appetizing". Aesthetics also refers to the "outside" feel of the product. The aesthetics dimension
differs from subjective criteria pertaining to "performance" in that aesthetic choices are not nearly universal. Not all people
prefer "rich and full' flavor or even agree on what that means. Companies therefore have to search for a niche. On this
dimension of quality, it is impossible to please everyone.
Perceived Quality (What is the reputation of the company or its product?)
Perceived quality is the individuals' subjective appraisal of products or service's

attributes; indirect measures may be their only basis for comparing brands. Consumers do not always have comprehensive
information about a product's or service's attributes. A product's durability, for instance can rarely be observed openly and
is usually must be inferred from various tangible and intangible aspects of the product. In such situation, images, advertising,
and brand names can be vital. Perception is not always reality. Sometimes customers perceived products and services as
they see them in advertising.
DIMENSIONS OF SERVICE QUALITY
Service is normally described as an experience felt by the consumer. In a restaurant for instance, the way the
customer is treated is considered as a service. Services are frequently intangible in nature. The quality of service is evaluated
by how well the customer is contented with the service. Service quality is about comparing performance with the customer
expectations. Service quality also leads to customer contentment and interrelated. The key to preserve customers is to be
aware of their needs and fulfill those needs. Making customers purchase the services continually needs focus on dimensions
of service quality. There are five dimensions of service quality and specified below:
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Tangibles
The tangible dimension of quality is associated to the environment in which

the service is rendered to the customers. This is the equivalent of physical characteristics of quality of goods. Since services
are tangible, customers draw from their perception of service quality by comparing the tangible associated with these
services provided. It consists of the appearance of the physical characteristics of facilities, equipment’s, consumable goods
and personnel used in or related with the service rendered.
In a Starbucks restaurant for instance, it may be seating arrangement, interior decoration, ambiance and lighting
arrangement. However here also the quality is assessed not by some standardized specifications in terms of physical
characteristic, but by the impact these physical characteristics have on customer assessment of the service quality.
Reliability
Reliability is the ability to perform the promised service dependably and accurately to customers on specific service.
It is all about what is promised about delivery, service provision, problem resolutions and pricing and what is delivered.
Like, Cebu Pacific airline in the Philippines has proved to be most successful low-cost carrier in the world with fun-filled
air travel.
Responsiveness
Responsiveness is the willingness to help customers and provide prompt service. This dimension emphasizes
attentiveness and promptness in dealing with customer's requests, questions, complaints and problems. Responsiveness is
communicated to customers by span of time they have to hang around for help, answers to questions or attention to problems.
Responsiveness also captures the impression of flexibility and ability to tailor the service to customer needs.
The willingness to help the customer promptly in case of special and unforeseen requirements is another way of
showing responsiveness. Helping a customer for instance who falls sick when staying in the hotel is a good example of
responsiveness.
Assurance
Assurance is defined as employees' knowledge of courtesy and the ability of the
firm and its employees to inspire trust and confidence. This dimension of service quality is connected to the competence of
the service employee. The employees must be competent to gain the trust of customers.
For instance, the customer dining in a restaurant may not be able to openly assess the level of cleanliness maintained
by the restaurants. Here it is not only imperative to really provide germ-free food but also to stir confidence that the food is
clean. The assurance is about giving the customer peace of mind that everything will be taken care of as necessary, rather
than just actually taking care when the need happens. For example, a doctor with Master degree may inspire more assurance
than a doctor with just an MD degree, although the basic treatment provided by them may be of same quality.
Empathy
Empathy refers to caring attitude that an organization provides toward customer. This dimension of service quality
calls for individual attention to customer, so as to make them feel exceptional and to show to the customer that the company
does best to satisfy his needs. Empathy is an additional plus that the trust and confidence of the customers and at the same
time increase the loyalty. In this competitive world, the customer's requirements are rising day after day and it is the
companies' duties to their maximum to meet the demands of customers, else customers who do not receive individual
attention will search elsewhere.
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CHAPTER 3
Gurus of Total Quality Management
OBJECTIVES:
 Identify the different quality gurus in quality management.
 Recognize the contributions of quality gurus in quality

management.
In order to fully understand the TQM movement, there are philosophies of notable individuals who have shaped the
evolution of TQM. Their qualitative and quantitative contributions have been critical in the emergence and development of
contemporary knowledge regarding quality. Their common thrust is towards the concept of continuous improvement of
every output, whether a product or service by removing unwanted variation and improving underlying work processes. Their
philosophies and teachings have contributed to the knowledge and understanding of quality.
DR. WILLIAM EDWARDS DEMING (14th October, 1900-20th December 1993)
Dr. William Edwards Deming is often referred to as the "Father of Quality Control." Deming is best known for
initiating a transformation in the Japanese manufacturing sector in the after effects of World War II, which enabled it to
become a big player in the world market. The Deming Prize, the highest award for quality in Japan, is named in his honor.
He is also known for his 14 points, for the Deming Chain Reaction and for the Theory of Profound Knowledge. He also
modified the Shewhart PDSA (plan, do, study, act) cycle to what is now referred to as Deming Cycle (plan, do, check, act).
Deming does not define quality in a distinct phrase. He said that only the customer can define the quality of any
product or service. Quality is a relative term that will adjust in meaning based on the customer's needs. Deming approach
to TQM is mainly concentrated on the creation of an organizational system that is process based on cooperation and learning
for facilitating the implementation of management practices, which in turn, leads to continuous improvement of processes,
products, and services as well as to employee fulfillment, both of which are critical to customer satisfaction, and ultimately,
to firm survival.
Deming stressed the responsibilities of top management to be the leader in changing processes and systems. He said
that leadership plays an important role in ascertaining the success of quality management. It is the top management's
responsibility to create and communicate a vision to move the firm toward continuous improvement. Top management is in
charge for most quality problems. Top management should give employees clear standards for what is considered acceptable
work, and provide the methods to achieve it. These methods include an appropriate working environment.
Deming's 14 Point Methodology
1. Constancy of purpose - Create firmness of purpose for continual improvement of products and service and
distribute resources to accommodate long term needs rather than short-term profitability with a plan to become
competitive, stay in business and provide jobs.
2. The new philosophy - Espouse the new philosophy for one can no longer allow delays, mistakes and faulty
workmanship. Transformation of the Western management style is necessary to bring to an end the continued
decline in the industry.
3. Cease dependence on inspection - Remove the need for mass inspection as a technique to attain quality by building
quality into the product in the first place. Insist statistical evidence of built-in quality in both manufacturing and
purchasing functions.
4. End lowest tender contracts - Reduce total cost. Many companies and organizations grant contracts to the lowest
bidder as long as they meet certain requirements. However, low bids do not promise quality. Unless the quality
aspect is carefully thought of, the effective price per unit that a company pays its vendors may be understated and,
in some cases, indefinite. Deming advised businesses to utilize single-sourcing for long-term relationships with a
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few suppliers leading to loyalty and opportunities for shared improvement. Using several suppliers has been long
acceptable for reasons like providing protection against strikes or natural disasters or making the suppliers compete
against each other on cost. However, this approach has overlooked hidden costs like increased travel to visit
suppliers, loss of volume discounts, increased set-up charges resulting in higher unit costs, and increased inventory
and administrative expenses. In addition, always changing suppliers only on the base of price increases the deviation
in the material supplied to production, since each supplier's process is different.
5. Improve every process - Management's job is to constantly make better the system with contribution from workers
and management. Deming was a follower of Walter A. Shewhart, the developer of control charts and the continuous
cycle of process improvement known as the Shewhart cycle. Deming popularized the Shewhart Cycle as the Plan-
Do-Check-Act (PDCA) or Plan-Do-Study-Act (PDSA) cycle. Therefore, it is also often referred to as the Deming
cycle. In the planning stage, chances for improvement are acknowledged and operationally defined. The theory and
course of action developed in the earlier stage is tested in the doing stage, on a small range through performing trial
runs in a laboratory or prototype setting. The results of the testing phase are examined in the check/study stage
using statistical methods. In the action stage, a decision is prepared about the implementation of the proposed plan.
If the results were encouraging in the pilot stage, then the plan will be implemented. Or else alternative plans are
developed. After complete scale implementation, customer and process feedback will once more be taken and the
process of continuous improvement continues.
6. Institute training on the job - Introduce up to date methods of training on the job, incorporating management to
make greatest use of all employees. Fresh skills are essential to sustain changes in materials, methods, product
design, machinery, techniques and service.
7. Institute leadership - Espouse and introduce leadership, aimed at helping people carry out a better job. The
responsibility of managers and supervisors must be altered to highlight on quality rather than quantity. This will
automatically increase productivity. management has to make sure that urgent action is taken on reports of inherited
defects, maintenance requirements, poor tools, fussy operational definitions and other conditions damaging to
quality
8. Drive out fear - Build a fear-free environment where everyone can contribute and work effectively. There is a
financial loss related with fear in an organization. Employees strive to satisfy their superiors because they believe
that they might lose their jobs. They are cautious to ask questions about their jobs, production methods, and process
parameters. If a supervisor or manager reflects the feeling that asking such questions is a squander of time, then
employees will be more focused about satisfying their supervisors than meeting long-term goals of the organization.
For that reason, creating an environment of trust is a significant task of management.
9. Break down barriers - People should work cooperatively with reciprocal trust, respect, and appreciation for the
needs of others in their work. Internal and external organizational barriers hamper the flow of information, put off
entities from perceiving organizational goals, and encourage the quest of subunit goals that are not essentially align
with the organizational goals. Barriers between organizational levels and departments are internal barriers. External
barriers are between the company and its suppliers, customers, investors, and community. Barriers can be removed
using better communication, cross- functional teams, and changing attitudes and cultures.
10. Eliminate exhortations - Do away with use of slogans, posters and exhortations demanding zero defects and new
level of productivity from the workforce, with no commensurate methods provided. Such exhortations only form
adversarial relationships. The volume of the cases of low quality and low productivity belong to the system; thus,
lie outside the power of the workforce.
11. Eliminate arbitrary numerical targets - Remove work standards that stipulate numerical quotas for the workforce
and the numerical goals for people in the management. Replace these with aids and useful supervision and employ
statistical methods for continual improvement of quality and productivity.
12. Permit pride of workmanship - Eliminate the barriers that steal from hourly workers and people in the management
of their rights to pride of workmanship. This implies the eradication of the annual merit rating and management by
objectives. Again, the responsibility of managers, supervisors and foremen must be changed from absolute numbers
of quality.
13. Encourage education - Deming's philosophy is founded on long-term, continuous process improvement that cannot
be carried out without properly trained and motivated employees. This point tackles the need for ongoing and
continuous education and self-improvement for the whole organization. This educational investment serves the
following objectives:
a. it leads to better motivated employees;

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b. it communicates the company goals to the employees;

c. it keeps the employees up-to-date on the latest techniques and supports
teamwork;
d. training and retraining offer a mechanism to ensure enough performance

as the job responsibilities change; and
e. through increasing job loyalty, it lessens the number of people who “job-
hop.
14. Top management's commitment - A clearly defined commitment by the top management to constantly improve
quality and productivity and strengthening of obligations to put into practice all these principles is always
advantageous to the workforce and the organization. Form a structure in the top management whose main task will
be to push these 13 points continually and act in order to achieve the change.
Deming's 7 Deadly Diseases
Deming's seven deadly diseases recap the factors that he believes can slow down the transformation that the fourteen
points can bring about. The seven deadly diseases are:
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. Stress on short-term profit; short-term thinking that is driven by a fear of unfriendly takeover attempts and pressure
from bankers and shareholders to generate dividends.
3. Personal review systems for managers and management by objectives with no methods or resources provided to
achieve objectives, includes performance evaluations, merit rating, and annual appraisals.
4. Job-hopping by managers.
5. Using only evident data and information in decision making with little or no consideration given to what is
unknown or cannot be known.
6. Extreme medical costs.
7. Too much costs of liability driven up by lawyers who work on contingency
fees.
PHILIP CROSBY (18th June, 1926 - 18th August, 2001).
Philip Crosby came to national prominence with the publication of his book Quality is Free in 1979. He established
the absolutes of quality management, which states that the only performance standard is zero defects and the basic elements
of improvement
While Crosby, like Deming and Juran stresses on the importance of the management's commitment and error-cause
removal, some aspects of Crosby's approach to quality are quite different from Deming's. Zero defects, the heart to Crosby's
philosophy, was censured by Deming as being directed at the wrong people and forming worker frustration and bitterness.
Goal setting, vital to Crosby's theory was also scorned for leading to unhelpful accomplishment. The truth is that Deming
was most likely reacting to the wrong use of slogans and goals. Deming may not have censured them if they had always
been used correctly within the Crosby system.
The essence of Crosby's teachings is contained in what he calls the "four absolutes of quality."
1. The definition - Quality is conformance to requirements, not goodness.

2. The system - Prevention, not appraisal.
3. The performance standard - Zero defects.
4. The measurement - The price of non-conformance to requirements, not
quality circles.
Crosby defines quality as a means "conformance to requirements". Quality must be defined in quantifiable and
clearly stated terms to aid the organization take action based on feasible targets, rather than experience, or opinions. For
Crosby, quality is either present or not present. There are no such thing as varying levels of quality.
Management must assess quality by continually tracking the cost of doing things erroneously. Crosby calls this as
the "price of nonconformance."
The requirements of a product need to be defined and specified clearly so that they are correctly known. He
emphasized that higher quality lessens costs and increases profits. Quality is measured by the quality cost. His categories
of quality costs are identical to those of Juran which are prevention, appraisal and failure. This needs an accent on prevention
rather than after-the-fact inspection.
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Crosby also presents the quality management maturity grid which contains five stages which are uncertainty,
awakening, enlightenment, wisdom, and certainty. These stages can be employed to appraise progress in management
understanding and attitude, the standing of quality in the organization, problem treatment, cost of quality as a fraction of
sales, quality improvement actions.
Figure 6 Quality Management Maturity Grid by Crosby
Based on these premises, he developed a 14-step methodology.
1. Management commitment - To make clear the management's position on quality.
2. Quality improvement team - To carry out the quality improvement program.
3. Quality measurement - To exhibit existing and possible non-conformance

problems in the way that permits objective evaluation and remedial action.
4. Cost of quality - To identify the components of the cost of quality, and give
details on its application as a management tool.
5. Quality awareness - To give a method of elevating individual concern among
the personnel in the company towards the conformance of the product and
service, and the status of the company on the subject of quality.
6. Corrective action - To offer a systematic method of deciding the problems
recognized through actions taken in the past.
7. Zero defects planning - To study the different activities that must be performed
as groundwork for officially initiating the zero defects program.
8. Supervisor training - To name the type of training that supervisors require
to energetically perform their roles with regard to the quality improvement
program.
9. Zero defects day - To produce an event that will allow all employee appreciate,
through a personal experience, that there has been change.
10. Goal setting - To twist promises and commitments into action by persuading
individuals to set up improvement goals for themselves and their
groups.
11. Error-cause removal - To offer individual employees a way of communicating
to the management, the situations that make it not easy for employees to fulfill
the promise to improve.
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12. Recognition - To be thankful for those who contribute.

13. Quality councils - To bring collectively professionals in the realm of quality
for planned communication on a customary basis with the workforce and
management alike.
14. Do it over again - To accentuate that the quality improvement program never
ends.
Crosby claims "mistakes are caused by two factors: lack of knowledge and lack of attention". Education and training
can eradicate the first cause, and a personal commitment to excellence (zero defects) and attention to detail will cure the
second.
DR. JOSEPH MOSES JURAN (24th December, 1904–28th February, 2008)
Dr. Joseph Juran assisted the Japanese in their reconstruction processes after World War II. Juran first became well-
known in the US as the editor of the Quality Control Handbook (1951) and alter for his paper introducing the quality trilogies
which are quality planning, quality control and quality improvement.
1. Quality planning - This involves identifying the customers' needs and expectations, proposing products and
services, setting goals, giving training, implementation of projects, reporting, recognizing, and communicating
outcome and improvements in systems.
2. Quality control - This concerns creating standards, naming measurements and methods thereof, contrasting results
with actual standards and construing the differences and taking action on differences.
3. Quality improvement - This is about the use of structured annual improvements projects and plans, need of
improvement, organizing to guide the projects, detecting the causes, giving and verifying remedies and establishing
control to keep up gains made.
Questioning which aspect of the quality trilogy is most vital is like asking "Which leg of a stool is the most important?"
The stool cannot function effectively without all three. Juran defined quality as "fitness for use" and also developed the idea
of cost of quality.
While Deming's approach is radical in nature, Juran's approach is more evolutionary. For Deming statistics is the
language of business while Juran says that money is the language of business and quality efforts must be communicated to
the management in their language. Juran concurs with Deming that more than 80% of defects are caused by the system
rather than the workers and lists motivation of workers as a solution to quality problems.
Juran propounded the following message on quality:
1. Quality control must be essential part of management

2. Quality is no mistake
3. Quality must be planned
4. There are no shortcuts to quality
5. Make use of problems as sources of improvement
Juran's formula consists of:
1. Create an awareness about the need and propose an opportunity for
improvement
2. Set goals for improvements
3. Systematize paths to attain the goals (begin a quality council, identify
problems, choose projects, assign teams, delegate facilitators and so on)
4. Give training
5. Do projects to resolve problems
6. Inform progress
7. Provide recognition
8. Communicate outcome
9. Keep score
10. Uphold thrust by making yearly improvements component of the regular
systems and processes of the company
In his view, the approach to managing for quality consists of:

1. The irregular problem is detected and acted upon by the process of quality
control;
2. The constant problem needs a special process, namely, quality improvement;
3. Such constant problems are traceable to a poor quality planning process.
Like Deming, Juran believes most quality problems are due to management, not employees. He also states that the
distinction between constant and irregular problems is essential because there are two different approaches to handling the
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problems. Constant problems require the principle of "breakthrough", while irregular problems require the principle of
"control".
He further elaborates the sequence of activities required for "breakthrough" and "control". Breakthrough activities or
quality improvement include:
1. Breakthrough in attitudes - persuading those responsible that a change in

quality level is advantageous and practical;
2. Discovery of the vital few projects - determining which quality problem
areas are essential;
3. Organizing for breakthrough in knowledge - defining the organizational
system for attaining the knowledge for accomplishing a breakthrough;
4. Formation of a steering arm - defining and staffing a system for directing
the study for quality improvement;
5. Formation of a investigative arm - defining and staffing a system for executing the technical inquiry;
6. Diagnosis - collecting and examining the facts necessary and proposing
the action desirable;
7. Breakthrough in cultural pattern - determining the effect of a anticipated
change on the people involved and looking for ways to rise above opposition
to change;
8. Breakthrough in performance - getting agreement to take action;

9. Transition to the new level - implement the change.
"Control" activities include:
1. Choosing the control subject which is choosing what is intended to regulate;

2. Choosing a unit of measure;
3. Setting a goal for the control subject;
4. Creating a sensor which can measure the control subject in terms of the
unit of measure;
5. Measuring real performance;
6. Interpreting the difference between actual performance and the goal;
7. Taking action (if any) on the difference.
"Planning" activities include:
1. Establish the quality goal

2. Identify customers
3. Discover customer needs
4. Develop product features
5. Develop process features
6. Establish process controls and transfer to operations
DR. WALTER ANDREW SHEWART (18th March, 1891 - 11th March, 1967)
Dr. Walter Shewhart the "Grandfather of Quality Control" was a giant among giants in the quality movement during
the first half of the 20th century. His mentoring of other engineers at Western Electric and his groundbreaking work with
control charts arguably led a quality revolution and launched the quality profession.
Walter Andrew Shewhart was born to Anton and Esta Barney Shewhart on March 18, 1891, in New Canton, IL.
Shewhart died on March 11, 1967, in Troy Hills, New Jersey. He received from the University of Illinois both bachelor's
and master's degrees. In 1914, he married Edna Hart and moved to California where he earned his doctoral degree in physics
while studying as a Whiting Fellow at the University of California, Berkeley, in 1917.
He had short stints of teaching at University of Illinois, University of California at Berkeley, and La Crosse State
Teachers College (renamed Wisconsin State University), but his academic career was brief.
In 1918, Shewhart joined the inspection engineering department of the Western Electric Co. in Hawthorne, IL.
Western Electric manufactured telephone hardware for Bell Telephone Co. Although no one could have realized it at the
time, Shewhart would alter the course of industrial history.
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Shewhart was part of a group of people who were all destined to become famous in their time. This group included
Harold Dodge and Harry Romig, known for their work on product sampling plans. George D. Edwards, who became the
first president of the American Society for Quality Control (renamed American Society for Quality) in 1997, was Shewhart's
supervisor.
Shewhart mentored several during his tenure, including Joseph M. Juran. During the summers of 1925 and 1926,
W. Edwards Deming worked as an intern at the Hawthorne, IL, plant where he became interested in Shewhart's work.
By 1924, Shewhart determined the problem of variability in terms of assignable cause and chance cause (Deming
named this as common cause). On May 16, 1924, Shewhart prepared a message of less than one page in length and forwarded
it to his manager, George Edwards. About 1/3 of the page was devoted to a plain diagram that people would today recognize
as a control chart. This memorandum set forth the essential principles and considerations that became known as process
quality control.
DR. ARMAND FEIGENBAUM (Born in 1922)
Armand Feigenbaum is given the credit to the formation of the idea of total quality control in his book Quality
control-Principles, Practice and Administration (1961) and in his article Total Quality Control (1956). The Japanese version
of this concept is called Company-wide Quality Control, while it is termed Total Quality Management (TQM) in the United
States and elsewhere. He was also the first to classify quality costs as costs of prevention, appraisal and internal and external
failures. Feigenbaum philosophy is summed up in his Three Steps to Quality which has been described as follows:
1. Quality leadership - This is apparent when the management stresses on sound planning rather than reacting to
failures. The management must maintain a constant focus and lead the quality effort.
2. Modern quality technology - The traditional quality development processes cannot resolve 80%-90% of quality
problems. This task involves integration of office staff, engineers as well as the shop-floor workers who continually
assess and apply latest techniques to satisfy customers in the future.
3. Organizational commitment - Continuous training and motivation of the whole workforce as well as a combination
of quality in business planning stage indicates the significance of quality and offers the means for including it in all
respects of the organization's activities.
Feigenbaum 10 points on TQM include:
1. Quality is consciousness programmed not only a technical function.

2. Quality is not what an engineer or marketer says but it is that what the customer speaks of.
3. Quality and cost are a sum, not differences.
4. Quality must be organized to identify everybody's job in the organization
5. Quality is a technique of managing an organization. Good management means continuous stress on the quality.
6. The quality improvement highlighting must take place all through all activities of the organization.
7. Quality is realized through assistance and contribution of each and every person related to the organization. It is
also an ethic.
8. Continuous quality improvement needs extensive range of new and existing quality technology of information
applications.
9. Total quality program approach leads to productivity and is most effective and less capital intensive.
10 Quality comes, if it is clear, customer oriented, effective and structured.
Feigenbaum defines quality as the "total composite product and service characteristics of marketing, engineering,
manufacture and maintenance through which the product and service in use will meet the expectations of the customer". He
states that total quality management covers the complete scope of the product and service "life cycle" from product
conception through production and customer service. The quality chain, he argues, begins with the recognition of all
customers' requirements and ends only when the product delivered or service is rendered to the customer who stays satisfied.
Thus, all functional activities, such as marketing, design, engineering, purchasing, manufacturing, inspection, shipping,
accounting, installation, and service, and the rests, are involved in and influence the attainment of quality. Effective total
quality control needs, therefore, a high degree of functional integration. Furthermore, it guides the synchronized actions of
people, machines and information to attain quality goals. He highlights a system approach to quality.
PROF. RAORU ISHIKAWA (13th July, 1915 - 16th April, 1989)
Prof. Kaoru Ishikawa is the "Father of Quality Circles" for his role in launching
Japan's quality movement in 1960s. He is recognized with developing the idea of company-wide quality control in Japan.
He established the use of quality circles and championed the use of quality tools to know the root causes of problems. He
P a g e 12 | 26
developed one of those tools, the cause-and-effect diagram, which is also known as the Ishikawa diagram or the fishbone
diagram.
For Ishikawa quality is the "development, design, production and service of a product that is most efficient, most
helpful, and constantly acceptable to the consumer". He argues that quality control extends further than the product and
includes after-sales service, the quality of management, the quality of individuals and the company itself. He advocates
employee contribution as the input to the successful implementation of TQM. Quality circles, he believes, are an essential
medium to achieve this. In his work, like all other gurus, he emphasizes the value of education. He states that quality starts
and culminates with education. In his book "What is Total Quality Control?" Ishikawa said that the seven basic tools were
"indispensable for quality control". These tools are:
1. Process flow chart

2. Check sheet
3. Histogram
4. Pareto chart
5. Cause - effect diagram (Ishikawa diagram)
6. Scatter diagram
7. Control chart
Ishikawa emphasized on quality as a way of management. He influenced the development of participative, bottom-up
view of quality which became the trademark of the Japanese approach to quality management. Some of the key elements
are:
1. Quality starts with education and culminates with education.

2. The first step in quality is to know the customers' requirements.
3. The perfect state of quality control happens when inspection is no longer compulsory.
4. Take out the root cause, not the symptoms.
5. Quality control is the duty of all workers and all divisions.
6. Do not mistake means with the objectives.
7. Set quality first and set your sights on long-term profits.
8. Market is the entry and way out of quality.
9. Top management must not demonstrate annoyance when facts are presented by subordinates.
10. 99% of problems in a company can be resolved with easy tools for analysis and problem-solving
11. Data without dispersion information (variability) are fake data.
Ishikawa's concept of total quality control contains 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 fence of sectionalism
4. Using facts and data to make presentations - use of statistical methods
5. Reverence for humanity as a management philosophy, full participatory management
6. Cross-functional management.
GENICHI TAGUCHI (1st January, 1924-2nd June, 2012)
Dr. Taguchi was born in Japan and completed his graduation in the subject of Mechanical Engineering and obtained
Ph.D. in the year 1962. He is a Japanese quality expert known for his work in the area of product design. He estimated that
80% of all defective items are caused by poor product design. Taguchi stressed that companies needed to center their quality
efforts on the design stage, as it was much less expensive and easier to make changes during this stage later in the production
process.
Taguchi underlines an engineering approach to quality. Taguchi defines quality as the "loss imparted to the society
from the time a product is shipped”. Examples of loss include failure to reach ideal performance, failure to meet the
customer's requirements, breakdowns, and harmful side-effects caused by products. This simply means that the smaller the
loss, the more desirable the product. The key elements of Taguchi's quality concepts are briefly stated below:
1. Quality improvement should focus on reducing the variation of the product's key performance characteristics about
their target values.
2. The loss suffered by a customer due to a product's performance variation is often just about proportional to the
square of the deviation of the performance characteristics from its target value.
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3. The ultimate quality and cost of manufactured products are determined to a great extent by the engineering design
of the product and the manufacturing process.
4. A products or process's performance variation can be lessened by exploiting the non-linear effects of the product or
process parameters on the performance characteristics.
5. Statistically planned experiments can be used to name the settings of product process parameters that reduce
performance variation.
Taguchi is known for applying a concept called design of experiments to product design. This method is an
engineering approach that focuses on developing robust design that enables products to perform under varying conditions.
He believed that it was more difficult to control the environmental conditions. Taguchi's approach focuses on a statistical
method that zeros in rapidly on the variations in a product that distinguish the bad parts from the good. He advocated that
all factors that can hamper uniformity between products and their long-term stable performance must be studied, and
safeguards must be built in the product design stage itself. He called it the concept of robust design. Robust design results
in a product that can perform over a wide range of conditions.
Taguchi's eight-point approach
1. Determine the main functions, side effects and loss modes.

2. Determine the noise factors and the testing conditions for evaluating failure of quality
3. Determine the quality characteristics to be observed and the objective functions to be optimized.
4. Determine the control factors and their alternate levels.
5. Blueprint the matrix requirements and define the data analysis procedure.
6. Carry out the matrix.
7. Examine the data, identify optimum levels for the control factors and foresee performance under these levels.
8. Perform the confirmation experiment and prepare future actions.
DR. SHINGO SHIGEO
Dr.Shingo Shigeo is the greatest contributor to modern manufacturing practices. While his name has modest
recognition in the western hemisphere, his teachings and principles have formed the backbone of efficient engineering
practices. In applying his experience and expertise in the field of industrial engineering, Dr. Shigeo was able to give a better
way of life for both the operators and the companies. His policies have earned reputation through outcome in manufacturing
among the companies that have implemented these teachings. In view of his contributions, Utah State University founded
the Shingo prize for excellence in manufacturing in 1988. This prize encourages world-class manufacturing and
distinguishes companies that accomplish superior customer satisfaction and business results, and has been matched up to a
Noble Prize for manufacturing.
Dr. Shigeo was one of the greatest influences on Japanese quality control and
his contributions to quality improvement transformed the Japanese industrial sector and accordingly influenced the
industries in the west. Dr. Shingo Shigeo's teachings can be classified into the three concepts listed as follows:
1. Just In Time (JIT) - The JIT manufacturing concept was originated in part due to the contribution of Dr. Shingo
Shigeo and Taichii Ohno of Toyota Motor Corporation from 1949 to 1975. During this period Dr. Shigeo took
responsibility of industrial engineering and factory improvement training at Toyota Motor Corporation. This is
commonly referred to as JIT or the Toyota Production System. The essential element in developing JIT was the use
of the Ford System along with the consciousness that factory workers had more to contribute than just muscle
power. JIT is about supplying customers with what they want when they want it. The aim of JIT is to diminish
inventories by producing only what is necessary when it is necessary. Orders are "pulled" through the system when
prompted by customer orders, not pushed through the system in order to attain economies of scale with the
production of larger batches.
2. Single Minute Exchange of Dies (SMED) - It is a system for speedy changeovers between products. The target is
to make simpler materials, machinery, processes and skills to significantly decrease changeover times from hours
to minutes. As a consequence products could be produced in small batches or even single units with negligible
disturbance.
3. Zero Quality Control (ZQC) - The ZQC concepts are based on the theoretically ideal scenario. However, quality
improvement can be made using these principles and concepts. Dr. Shigeo' basic idea was to implement error-
proofing devices in the assembly line to abolish the likelihood of flawed operations. In addition, his accent was on
targeting the root cause of defect whenever a defect took place, thereby almost abolishing the requirement for
statistical process control. The famous equation in the spirit of Zero Quality Control Concepts formulated by the
Japanese quality guru, Dr. Shigeo Shingo is:
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Poka-Yoke Techniques to Correct Defects + Source Inspection to Prevent Defects =Zero Quality Control
This technique by Dr. Shigeo makes use of the following engineering principles:
a. 100% inspections done at the starting place instead of sampling inspections

b. Instant feedback from consecutive quality checks and self-checks
c. Poka-yoke designed manufacturing devices-Poka yoke relates to stopping processes as soon as a defect
happens, searching the defect source and avoiding it from occurring once more so that there will be reduced
relianceon statistical quality inspections and the production process will have zero defects. For example,
Binney and Smith, maker of Crayola Crayons, uses light sensors to verify if each crayon is present in each
box of crayons they produce. If a crayon is missing, the machines will discontinue automatically. Producing
complete boxes of crayons right the first time is the preferred outcome.
Using his key teachings, many modern day manufacturing companies have realized substantial profits.
MASARI IMAI
Masaki Imai is the Founder and President of Kaizen Institute who threw the word "Kaizen". Kaizen refers to
continuous or on-going improvement" in Japanese. Kaizen was originally introduced to the West by Masaaki Imai in his
book Kaizen: The Key to Japan's Competitive Success in 1986. Today Kaizen is acknowledged globally as an essential
pillar of an organization's long-term competitive strategy. Kaizen is continuous improvement that is based on certain guiding
principles:
1. Good processes carry good results

2. Go see for yourself to grab the present situation
3. Speak with data, direct by facts
4. Take action to contain and remedy root causes of problems
5. Work as a team
6. Kaizen is everyone's business
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CHAPTER 4
Kaizen: Concepts and Systems
OBJECTIVES:
 Define Kaizen as a philosophy.
 Describe the different concepts of Kaizen.
 Explain the systems under Kaizen.
 Apply the philosophy of Kaizen in everyday activities.
Kaizen is a philosophy that calls for people and their organizations to experience ongoing improvement at every
level. Through focusing on small, incremental change rather than dramatic innovation, Kaizen seeks to construct effective
and efficient processes and quality outputs.
Kaizen at the workplace means continuing improvement involving everyone, managers and workers alike. The
Kaizen business strategy involves everyone in an organization working together to make improvements without large capital
investments.
KAIZEN CONCEPTS
Kaizen is a Japanese word meaning continuous improvement. It is made up of two characters which are "kai",
meaning "change," and "zen," which meaning "good." It is used to describe a company culture where everyone, from the
CEO to the front desk clerk, regularly evaluates his work and thinks of ways to improve it. The concept is that small steps
on a customary basis will lead to large improvements in due course. Kaizen entails relatively little expense.
Kaizen originated in Japan as a result of World War II. Ironically, it evolved in part from American business leaders
like Dr. W. Edwards Deming who came to help restore the country. It was first introduced by a 1951 training film created
by the American Economic and Scientific Section (ESS), although Dr. Deming is largely credited for instituting the
principles of Kaizen in Japan. Kaizen's elimination of waste through the maintenance and improvement of processes became
fundamental to Japanese management philosophy. It has since stretch around the world to companies and organizations
wishing to follow the success of Japanese business.
Toyota has been known as the initial company that has started Kaizen. The application that Toyota used was called
"Toyota Production System", where all line personnel are expected to discontinue their moving production line in the case
of any irregularity, and suggestions for improvement are awarded reward. They succeeded eradicating all the wastes. Kaizen
is used for placing the terms as productivity, total quality control (TQC), zero defects (ZD), and just-in-time (JIT). Therefore,
Kaizen is a main concept for all these practices.
Kaizen and Management
It is also essential that management is trained and be behind the effort. Kaizen will result in many more suggestions
for improvements and changes and will take away from a strict focus on moving items quickly through the existing
production process. Management must be prepared to recognize some time away from current work to focus on changes
with longer-range impact.
Management has two major components which are maintenance, and improvement. The objective of the
maintenance function is to maintain current technological, managerial, and operating standards. The improvement function
is aimed at improving current standards. Under the maintenance function, the management must first establish policies,
rules, directives and standard operating procedures (SOPs) and then work towards ensuring that everybody follows SOP.
The latter is achieved through a combination of discipline and human resource development measures.
A manager needs to work closely with the senior management, human resource professionals to develop perfect
implementation strategies. A manager has to act as a bridge between the senior management and the entire workforce.
1. The role of a manager is to act as a facilitator at the workplace. It is the duty of a manager to assist employees in
implementing TQM. As a manager, it is also his responsibility to choose and assign right individuals who can work
P a g e 16 | 26
as line managers and take charge of the whole project. The employees to be selected must be reliable and diligent
and capable as much as necessary to handle a key project like TQM. It is the manager's responsibility to allocate
resources for TQM, schedule time for different training programs and be grateful for employees who come up with
a variety of improvement ideas and strategies which would aid the organization bring better quality products.
Further train subordinates to guarantee smooth implementation of TQM without any obstacles.
2. A manager must communicate the benefits of total quality management to all other members of the organization.
Call employees on a common platform and address the benefits and importance of TQM. Make them understand
how successful implementation of TQM programs would give way to high quality products which would benefit
the organization and the employees as well.
A manager is always a strong source of inspiration for other employees. He needs to practice TQM himself before
expecting others to believe in the same principle. Customer feedbacks should be cautiously screened and taken into
consideration while creating company's major strategies. A manager must also provide frequent reports to staff members
stressing scope of improvement.
Process Vs Results
Process-oriented thinking mostly centers on how processes are carried out through the assessment of performance
indicators generated by measuring or observingthe process flow. Result-oriented thinking basically disregards how
processes flow and work. Instead, process results/outcomes are obtained, monitored and evaluated systematically. For
example, micro level performance indicators include lead time, cycle time, throughput time, and defective part ratio. While
macro level performance indicators consist of profit or customer satisfaction which would be monitored in result-oriented
thinking.
Kaizen recognizes the connection between outcomes and processes. If the results from an organization are of poor
quality, the processes used to achieve those results necessitate concentration. This understanding is a component of the
framework of Japanese society, even on the personal level, and explains why Kaizen is so successful there.
Source:
https//in.kaizen.com/blog/post/2015/05/05/sdca-before-you-do-pdca.html
Figure 7 Kaizen Process
The manner in which processes are addressed is a key element of Kaizen. While in the West, innovation or radical
change is often sought, Kaizen hunts for constant incremental change, which generates remarkable results eventually.
Since the changes in Kaizen are small, errors can effortlessly be corrected with no involvement of much risk or expense.
This is likely to make Kaizen processes less wasteful than innovation, where error can have tremendous loss effects.
Table 2 The Features of Process and Result criteria
P (Process-Oriented) criteria R (Result-Oriented) criteria

Long-term orientation Short-term orientation
Efforts for improvement are important Performance and results are important.
It is cared how the processes work and how the Degree of goal achievement is important.
results are obtained.
Process-oriented indicators are followed. Result-oriented indicators are followed.
P a g e 17 | 26
Awards are determined on the basis of how processes Awards are determined on the basis of results of the
flow. processes.
Rewards are generally based on recognition and Rewards are generally related to financial
honor geared to the effort made. performance.
Discipline, time management, skill development, The results and reaching goas in designated time
participation and involvement, morale, and frame are important.
communication are important.
A supportive and collaborative role is seen among Control-centric behavior is more common among
managers in process-oriented management. result-oriented managers.
Quality gurus strongly note that a combination of process-oriented and result-oriented management should be
implemented throughout the entire operational system instead of focusing on just one orientation (either process or result)
as this heightened focus may not be enough to generate successful continuous improvement strategy. Continuous
improvement can be either a team management or top management initiative. In order to be able to utilize these two
management approaches appropriately, the basic features of process-oriented and result-oriented management should be
studied prior to getting on a continuous improvement journey. The distinctive features of process-oriented and result-
oriented criteria are given in Table 2 below.
PDCA/SDCA Cycles
Central to the philosophy of Kaizen are two cycles that involve processes for improvement and for maintenance:
Plan-Do-Check-Act (PDCA) and Standardize-Do-Check-Act (SDCA). When improving processes, the following are the
phases:
1. Planning Phase - Planning is the most vital phase of total quality management. In this phase employees have to
come up with their problems and queries which need to be addressed. They need to come up with the various
challenges they face in their day to day operations and also analyze the problem's root cause. Employees are required
to do necessary research and collect relevant data which would help them find solutions to all the problems.
2. Doing Phase - In the doing phase, employees develop a solution for the problems defined in planning phase.
Strategies are devised and implemented to overcome the challenges faced by employees. The effectiveness of
solutions and strategies is also measured in this stage.
Source:
https//in.kaizen.com/blog/post2015/05/05/sdca-before-you-do-pdca.html
Figure 8 Kaizen PDSA Cycle
3. Checking Phase – Checking phase is the stage where people actually do a comparison analysis of before and after
data to confirm the effectiveness of the processes and measure the results.
4. Acting Phase – In this phase employees document their results and prepare themselves to address other problems.
The SDCA cycle ensures that the improvements that have been done using Kaizen works well and improvements
do not slide back. SDCA prevents the deterioration and therefore it is extremely important that both the SDCA and PDCA
cycles are well established. Improvement without standardization is stillborn to say the least.
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Source: https//in.kaizen.com/blog/post2015/05/05/sdca-before-you-do-pdca.html
Figure 9 SDCA Cycle
Standard is the best, safest and easiest way, to achieve and maintain a defined quality level.
Standards should be:
1. Be simple, clear and conspicuous

2. Be the best, easiest, safest way-should only have one at a time
3. Preserve know-how
4. Be guide-lines that enable performance
5. Measurement of tasks delegated
6. Assure quality, cost, delivery and safety
7. Show relationship between cause and effect
With Standards:
1. Management becomes possible

2. There is a basis for training
3. There is a basis for audit or diagnosis
4. Problems are prevented from recurring and control variability
Putting Quality First
Kaizen also talks about improving performance in terms of three dimensions which are quality, cost, and delivery
(OCD). Quality is typically among the most essential criteria customers use to make the purchase. Quality is usually
customer- defined and referred to as the perceived characteristics and features of a product. This includes the quality of
processes that go into it.
Kaizen requires that quality is a primary goal. There could be so many goals for the firms to achieve such as goals
of quality, cost, and delivery. However, the firm should always put quality first priority. Kaizen recognizes that without
quality product, organizations will not be able to compete. If managers make some changes on delivery to make it cheaper
or cutting costs somehow, and it ends up making the quality worse, they risk sacrificing not only quality but the life of the
business as well.
Cost is generally looked at coming from the manufacturer's viewpoint, as the overall cost of making and selling a
product. An important factor, here, is the elimination of waste in many aspects of work, such as production, inventory,
repair, rejects, motion, processing and so on.
Delivery refers to bringing the necessary quantity of products in the right place at the right time. The company may
offer better prices using reduced cost and attractive delivery terms. However this does not guarantee competitiveness, if the
quality of goods and services falls short of consumer expectations. Some cost-oriented managers do not resist the lure of
cutting cost at the expense of quality. This could work well in the short-term, but would likely to endanger not only
profitability, but also reputation and market position of the product in the long-term.
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Speak with Data

Kaizen is a problem-solving process. Since Kaizen deals with addressing problems or limitations, every situation must be
correctly understood. Kaizen has no room for "seat of the pants" operations. In order to correct the problems in a process,
detecting the problems is the first thing to do. Sound data must be gathered and evaluated for Kaizen to work for
improvement. Without this data the company will be like a flying blind. It will never be able to tell what is working and
what needs to be improved. Data is the lifeblood of kaizen.
The Next Process is Customer

The last concept of kaizen is that the next process is the customer. This means that all workers think that next
process is the customers. So, all workers in any process on no account pass on flawed parts or imprecise pieces of
information to those in next process particularly when the organization has a strong commitment to consumer satisfaction.
If all workers have to be cautious on what they are doing, the customers get the high-quality product and service as a result.
Kaizen promotes the concept of internal and external customers. Through regarding every process in a series as a
customer of the preceding process, every stage of production can be concentrated for a quality result. If each internal
customer is delivered high quality goods, the external customer will have a high quality product to purchase.
RAIZEN SYSTEMS
Next, the systems of kaizen have to be understood. Kaizen encompasses many of the components of Japanese
businesses that have been seen as a part of their success. Total quality control/total quality management, just-in-time
delivery, total productive maintenance, suggestion system, policy development, suggestion systems, and small-group
activities are all included within the Kaizen system of running a business.
Kaizen System
TQM Control
JIT production system
Total Productive Maintenance
Policy Development
Suggestion System
Small-group activities
Figure 10 Kaizen System
TQM Control
Total quality control (TQC) and total quality management (TQM) are widely used in manufacturing, education,
government and service industry now. TQC/ TQM have been developed as a strategy to help management in becoming
more competitive and profitable through helping it to improve in all phases of business. TQM necessitates that the company
uphold some quality standard in all phases of its business. This need ensuring that things are completed right the first time
and that defects and waste are removed from operations.
TQC is a management tool for improving total performance. TQC means organized Kaizen activities involving
everyone in a company. Managers and workers alike should be part of a totally systemic and integrated effort toward
improving performance at every level. It is geared towards increased customer satisfaction through satisfying such corporate
cross-functional goals as quality, cost, scheduling, manpower development, and new product development.
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In Japan, TQC activities are not limited to quality control alone. Elaborate system of Kaizen strategies has been
developed as management tools within the TQC approach. TQC in Kaizen is a movement intended at improvement of
managerial performance at all levels.
According to the Japan Industrial Standards, "implementing quality control effectively necessitates the cooperation
of all people in the company, including top management, managers, supervisors, and workers in all areas of corporate
activities such as market research and development, product planning, design, preparation for production, purchasing,
vendor management, manufacturing, inspection, sales and after-sale services, as well as financial control, personnel
administration, and training & education. Quality control carried out in this manner is called company-wide quality control
or total quality control (TQC).”
Quality control in Japan deals with quality of people. It is the fundamental concept of the Kaizen-style TQC.
Building quality into its people brings a company a half-way towards producing quality products.
Table 3 TQC of Japan vs. West
Main Differences between TQC Practices in Japan and West

Japan The West
Deals with quality of products Deals with quality of products
Customer-oriented Manufacturer-oriented
Upstream Downstream
Process-oriented aimed at improving the total Product-oriented, aimed at detecting and
performance eliminating defective parts
Company-wide, everybody’s responsibility Responsibility of quality control managers
Source: http://it4b.icsti.su/1000ventures_e/business_guide/mgmt_kaizen_tqc_main.html
JIT Production System
Many people have misconstrued Just-in-time (JIT) production. In one of most frequent misunderstandings, a
company expects its suppliers to deliver just-in- time. However, JIT production has something to do with internal process.
JIT is a revolutionary way to trim down cost while at the same time meeting the customer's delivery needs. For example,
new stock will be ordered automatically when stock reaches the re-order point level. So, this system ensures that the firm
can maintain the minimum required number of stocks every day, which saves a lot of inventory costs. Also, the firm can
meet the customer's delivery needs.
Elements of JIT
1. Make stable and level the Master Production Schedule (MPS) with uniform plant loading create a uniform load on
all work centers through regular daily production and mixed model assembly.
2. Decrease or eliminate set up times. Aspire for single digit set up times less than 10 minutes or one touch setup.
This is done through better planning, process, redesign, and product redesign.
3. Trim down lot sizes. Decreasing set up times allows economic production of smaller lots, close cooperation with
suppliers which is necessary to realize reduction.
4. Shrink lead times. Production lead times can be reduced by moving work stations closer together, applying group
technology and cellular manufacturing concepts, reduce wait-in-line length and improving the coordination and
cooperation between successive processes. Delivery lead times can be decreased through close cooperation with
suppliers, perhaps by inducing suppliers to be located very near to the factory.
5. Preventive maintenance. Use of machine and worker idle time to preserve equipment and avoid breakdown.
6. Flexible work force. Workers should be trained to work on several machines, to carry out maintenance tasks, and
to do quality inspections.
7. Oblige supplier quality assurance and execute a zero defect quality program. Small lots (single unit) conveyance.
Make use of a control system like Kanban system (or other signaling system) to transport parts between work
stations in smaller quantities. In its better sense, JIT with Material Requirements Planning (MRP) system is used to
transport the parts between workstations.
Reasons for a move from batch mode to Just-in-time (JIT)
1. Batch production system is the most inefficient way to make products.
P a g e 21 | 26
2. Difficult to meet customer requirements, which come in varying orders, like varying volumes in varying time
frames and soon.
3. The batch system derives from the agricultural mentality. The batch system, purchase material and produce in huge
batches and there are many processes. At every process, gather the batch and at the end collect the finished product
in a batch, which is stocked up in the warehouse.
4. This kind of production system is based on market projection, is good when there is demand.
5. End up with large inventory of unsold products and overload capacity, and then borrow money to carry that
inventory. By that time, got hold of too many people for every process.
Total Productive Maintenance
In industry, total productive maintenance (TPM) is a system of maintaining and improving the integrity of
production and quality systems through the machines, equipment, processes, and employees that add business value to an
organization TPM focuses on maintaining all equipment in top working condition to avoid breakdowns and delays in
manufacturing processes.
The term total productive maintenance is attributed to Nippondenso, a company that created parts for Toyota.
However, Seiichi Nakajima is regarded as the father of TPM because of his numerous contributions to TPM.
One of the main objectives of TPM is to increase the productivity of plant and equipment with a modest investment
in maintenance. Total quality management (TQM) and total productive maintenance (TPM) are considered as the key
operational activities of the quality management system. In order for TPM to be effective, the full support of the total
workforce is required. This should result in accomplishing the goal of TPM: "Enhance the volume of the production,
employee morale and job satisfaction."
Total Productive Maintenance (TPM) is a modern Japanese concept. The origin of TPM can be traced back to 1951
when preventive maintenance was initiated in Japan. However, the concept of preventive maintenance was taken from USA.
Nippondenso was the first company to begin plant wide preventive maintenance in 1960. Preventive maintenance is the
concept wherein, operators produced goods using machines and the maintenance group was dedicated with work of
maintaining those machines. However, with the automation of Nippondenso, maintenance became a problem as more
maintenance personnel were required. So, the management decided that the routine maintenance of equipment would be
carried out by the operators which are termed as autonomous maintenance, one of the features of TPM. Maintenance group
took up only essential maintenance works.
OEE has three factors which are multiplied to give one measure called
OEE Performance x Availability x Quality = OEE
Each factor has two associated losses making 6 in total, these 6 losses are as follows:
1. Performance - running at reduced speed and minor tops
2. Availability - breakdowns and product changeover
3. Quality - startup rejects and running rejects
The objective finally is to identify then prioritize and eliminate the causes of the losses. This is done by self-
managing teams that problem solve. Employing consultants to create this culture is common practice.
The eight pillars of TPM are mostly focused on proactive and preventative techniques for improving equipment
reliability:
1. Focused Improvement
2. Autonomous maintenance
3. Planned Maintenance
4. Quality Maintenance
5. Cost Deployment
6. Early Equipment Management
7. Training and Education
8. Safety Health Environment
With the help of these pillars productivity can be increased.
Types of maintenance
1. Breakdown maintenance - It means that people waits until equipment fails and repair it. Such a thing could be used
when the equipment failure does not significantly affect the operation or production or generate any significant loss
other than repair cost.
2. Preventive maintenance - It is a daily maintenance (cleaning, inspection, oiling and re-tightening), design to retain
the healthy condition of equipment and prevent failure through the prevention of deterioration, periodic inspection
P a g e 22 | 26
or equipment condition diagnosis, to measure deterioration. It is further divided into periodic maintenance and
predictive maintenance. Just like human life is extended by preventive medicine, the equipment service life can be
prolonged by doing preventive maintenance.
a. Periodic maintenance (Time based maintenance - TBM) Time based maintenance consists of periodically
inspecting, servicing and cleaning equipment and replacing parts to prevent sudden failure and process
problems
b. Predictive maintenance - This is a method in which the service life of important part is predicted based on
inspection or diagnosis, in order to use the parts to the limit of their service life. Compared to periodic
maintenance, predictive maintenance is condition based maintenance. It manages trend values, by measuring
and analyzing data about deterioration and employs a surveillance system, designed to monitor conditions
through an on-line system
3. Corrective maintenance - It improves equipment and its components so that preventive maintenance can be carried
out reliably. Equipment with design weakness must be redesigned to improve reliability or improving
maintainability
4. Maintenance prevention - It indicates the design of new equipment. Weakness of current machines are sufficiently
studied (on site information leading to failure prevention, easier maintenance and prevents of defects, safety and
ease of manufacturing) and are incorporated before commissioning a new equipment.
Policy Development
People follow policies, good or bad. The need, therefore, is for organizations in developing countries to realize the
importance of clear, well-defined policy statement's on quality, reflecting management's commitment and orientation and
to propagate them through various modes, such as circulation of documents, newsletters, training, meetings, pledge cards
and personal contacts.
It needs to state the level of defects or errors that is acceptable. The policy also needs to state the relationship
between the company and the customer. The policy should be direct and concise and should clearly define management's
commitment to quality. The policy on quality has to be a statement that will not be misunderstood. It has to cover
conformance to requirements, time and money.
Once the policy is written, management needs to determine how to explain it to employees. The best method is for
top executives to meet personally with groups of employees to explain the policy. This also ensures that the commitment
and interest of top management is properly understood by all.
Suggestion Systems
On the other hand, suggestion system is regarded as individual-oriented kaizen. Suggestion system encourages all
workers to talk about their suggestions orally with supervisors and put them into action right away, even before submitting
suggestion forms. However, all the workers don't need to expect to get economic benefits from each suggestion. The process
to think and have the idea of each worker is vital. This system is different from Western management which emphasis on
the economic benefits and financial incentives of suggestion systems.
The suggestion system is an integral part of an established management system that aims at involving employees
in Kaizen. The number of worker's suggestions is regarded as important criteria in reviewing the performance of the worker's
supervisor and the manager of the supervisor. The Japanese management encourages employees to generate a great number
of suggestions and works hard to consider and implement these suggestions, often incorporating them into the overall Kaizen
strategy. Management also gives due recognition to employee's efforts for improvement. An important aspect of the
suggestion system is that each suggestion, once implemented, leads to an upgraded standard.
Three Stages of the Suggestion System
A staff suggestion system is a formalized mechanism which encourages employees to contribute constructive ideas
for improving the organization in which they work. The overall aim is to gather, analyze and implement ideas in order to
create results that have a positive impact on the business and/or deliver new value to customers. The following are the three
stages of implementing suggestion system:
1. Encouragement. In the first stage, management should make every effort to help the workers provide suggestions,
no matter how primitive, for the betterment of the worker's job and the workshop. This will help the workers look
at the way they are doing their jobs.
2. Education. In the second stage, management should stress employee education so that employees can provide better
suggestions. In order for the workers to provide better suggestions, they should be equipped to analyze problems
and the environment. This requires education.
3. Efficiency. Only in the third stage, after the workers are both interested and educated, should management be
concerned with the economic impact of the suggestions.
Benefits of a Suggestion System
P a g e 23 | 26
Implementing an effective Staff Suggestion System that generates a sustainable flow of good quality ideas is not
impossible. In Toyota, 700,000 ideas are generated annually with a 99% implementation rate.
Here are the benefits of a suggestion system, namely:
1. Improves one's own work and the working environment

2. Engages and empowers employees
3. Creates ownership and trust
4. Improves motivation and morale
5. Improves customer satisfaction
6. Improves profitability
Many organizations have made the mistake of putting up suggestion boxes and expect employees to participate and
contribute good quality ideas to improve the products, services and the working environment without creating a supporting
infrastructure to manage the flow of suggestions.
More often than not, these suggestion boxes are either empty or become collectors of trash.
For a suggestions system to be successful and effective, the following factors have to be considered:
1. Formation of a suggestions committee to plan and manage the suggestions system

2. Defining the suggestions process, including a feedback system
3. Promoting the suggestions system
4. Evaluation system
5. Award system
6. Sustaining the suggestions system
Figure 11 The Suggestion Cycle
Why Suggestion System Stumbles and How to Avoid Them
Most suggestions remain to be suggestion because of:
1. Delays in approving ideas – Respond within the day to team member ideas whenever possible. The approval may
be a "go do it" or to give coaching to ideas that require further thought and development. For complex or large
ideas, respond within a week, or encourage the idea generator (person) to break the problem down into several
smaller parts.
2. Complex approval process (committees) - The approval process should undergo observation, discussion and
approval by the team leader or supervisor. It’s better to go see the actual issue in the actual place than to discuss the
issue in a conference room based on ideas written on a piece of paper.
3. Backlog of suggestions needing approval or implementation - Ironically, asking for quantity over quality will force
the identification of smaller problem that are easier to solve. This reduces the backlog as more of them are “just do
P a g e 24 | 26
it" ideas. This increases the skill and confidence of people to go through the problem solving process (thinking) as
well as the action itself (experimentation).
4. Less than 99% of ideas implemented – An idea should be nurtured and the idea generator (person) should be
coached so that basically every idea is approved. Provide guidelines on what is a good kaizen. Track approval rating
visually and have a management team problem solve the gap between current condition and 99% implemented.
5. Inappropriate kaizen suggestions - Once again, clear guidelines for what is a good kaizen idea. Focus on the
customer, improve own work; and keep environmental targets from management policies in mind. Process focus,
not people issues, is appropriate.
6. Allowing anonymous suggestions - This defeats the purpose of kaizen as a people development tool since the idea
generator cannot be coached. It's alright to allow anonymous suggestions where people feel need to "blow the
whistle". Except that this indicates that the workplace is not safe professionally, emotionally or physically and is
not a stable environment for kaizen. Fix that condition before launching suggestion systems and anonymous
suggestions would not be an issue.
7. Unfair rewards - Every idea should receive a small reward. Larger awards may be given based on several categories
like effort, creativity and impact of the kaizen idea. Encouraging kaizen idea generation, development and
implementation by teams, and giving team rewards also lessens the possibility of unfair rewards being given to
individuals.
8. Motivating by cash only - Since humans are at the heart of kaizen, and humans need both extrinsic (cash) and
intrinsic motivation. Sustained kaizen needs intrinsic motivation like recognition, self-actualization, skill
development, feeling fulfilled, or saving the environment through kaizen suggestions. Management attention and
leadership is required.
9. Lack of promotion and support of the kaizen suggestion program - Endorse kaizen forms in a variety of ways. Take
a long-term view of kaizen a people development and communication strategy. Start by encouraging idea generation
by teams, and aiming for quantity over quality. Hold periodic "championships" or promotional events based on
themes.
10. Lack of timely implementation - Companies can do these entire well and still not get the ideas put in place quickly
enough if resources. Meaning time, money, materials, skills are not enough for the number of great ideas team
members are generating. The skill matrix is a great enabler for suggestion systems. Once again, the management
should evaluate the gaps in the 4Ms (manpower, material, machine, method) resources to keep suggestions moving
smoothly.
Small Group Activities
A kaizen includes small-group activities-informal and voluntary groups organized to carry out specific tasks in a
workshop environment. The quality circles are the most popular type. Quality circles are designed to address not only quality
issues but also such issues as cost, safety, and productivity. Quality circles are regarded as group-oriented kaizen activities.
Small Group Activity (SGA) is also known as focused or continuous improvement in English. SGA finds its origin
in the Japanese industry where it is called Quality Circles (QC). SGA is a method for problem solving in teams by
structurally searching for the root causes and eliminating them. After standardization of the solution the reoccurrence of the
problem is prevented. The feeling of ownership is intensified because those who are directly involved solve the problem in
a multifunctional team.
The members of the team learn to use techniques (cause and effect diagram, Fishbone-diagram) to find and eliminate
root causes. The team is also taught communication skills, working in teams and decision making, in order to use each
other's knowledge and experience.
P a g e 25 | 26
Figure 12 SGA Improvement Circle
The structure of an SGA project is derived from the PDCA-circle from Dr. W. Edward Deming and exists of 8 steps
on the basis of the SGA circle. The SGA team works independently and reports the progress by means of communication
boards.
The introduction of SGA leads to the following results:
1. Team-building
2. Improved communication
3. Higher involvement
4. Learn how to analyze and solve problems
P a g e 26 | 26

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BUS 111 OPERATIONS MANAGEMENT (TQM) – PROF. CYNTHREN L.

After reading this chapter, the student should be able to:

 Identify the eight dimension of product quality.

 Name the five dimensions of service quality.

 Differentiate the dimensions of product and service quality.

DIMENSIONS OF PRODUCT OUALITY

Performance (Will the product do the intended job?)

Features (What does the product do?)

Reliability (How often does the product fail?)

Failure rate = Number of failures/number of units tested X total length of time

Conformance (Is the product made exactly as the designer intended?)

Figure 4 Two Approaches to Conformance

Durability (How long does the product last?)

Vibration Testing in a Car

Serviceability (How easy is it to repair the product?)

Aesthetics (What does the product look like?)

Perceived quality is the individuals' subjective appraisal of products or service's

DIMENSIONS OF SERVICE QUALITY

The tangible dimension of quality is associated to the environment in which

After reading this chapter, the student should be able to:

 Identify the different quality gurus in quality management.

 Recognize the contributions of quality gurus in quality

DR. WILLIAM EDWARDS DEMING (14th October, 1900-20th December 1993)

Deming's 14 Point Methodology

a. it leads to better motivated employees;

b. it communicates the company goals to the employees;

d. training and retraining offer a mechanism to ensure enough performance

Deming's 7 Deadly Diseases

1. The definition - Quality is conformance to requirements, not goodness.

Figure 6 Quality Management Maturity Grid by Crosby

Based on these premises, he developed a 14-step methodology.

1. Management commitment - To make clear the management's position on quality.

2. Quality improvement team - To carry out the quality improvement program.

3. Quality measurement - To exhibit existing and possible non-conformance

12. Recognition - To be thankful for those who contribute.

1. Quality control must be essential part of management

In his view, the approach to managing for quality consists of:

1. Breakthrough in attitudes - persuading those responsible that a change in

8. Breakthrough in performance - getting agreement to take action;

"Control" activities include:

1. Choosing the control subject which is choosing what is intended to regulate;

"Planning" activities include:

1. Establish the quality goal

DR. ARMAND FEIGENBAUM (Born in 1922)

Feigenbaum 10 points on TQM include:

1. Quality is consciousness programmed not only a technical function.

PROF. RAORU ISHIKAWA (13th July, 1915 - 16th April, 1989)

1. Process flow chart

1. Quality starts with education and culminates with education.

Ishikawa's concept of total quality control contains six fundamental principles:

1. Quality first - not short-term profits first

GENICHI TAGUCHI (1st January, 1924-2nd June, 2012)

Taguchi's eight-point approach

1. Determine the main functions, side effects and loss modes.

DR. SHINGO SHIGEO

a. 100% inspections done at the starting place instead of sampling inspections

1. Good processes carry good results

After reading this chapter, the student should be able to:

 Define Kaizen as a philosophy.