Lesson 01

Introduction

Department of Business Management

Faculty of Management Studies
Rajarata University of Sri Lanka
What do you see from these
pictures?
What is your favorite
AUTOMOBILE?
1

2
What is QUALITY?
 Quality is mostly a
subjective and
perceptual attribute.

 Different people may not

have the same
understanding of the
meaning of the term.
 The Concept : Quality
 Quality familiar to everyone has verity of uses and
meaning.
Ex; when shop for groceries, eat in
restaurant, make purchase.

 The classic perception of quality is the position of a

product attribute on a good-bad scale.
 The Concept : quality …..
 Some of the important definition of quality are,

 Quality is fitness for use. (Juran, 1974)

 Quality is conformance to requirements.

(Crossby, 1984)

 Quality means best for certain customer condition.

(Feigenbaum, 1961)
 The Concept : quality ……

 Quality is the degree to which a specific

product conforms to a design or specification
(Feigenbaum, 1983)

 The totality of features and characteristics of

product or service that bears on its ability to
satisfy given needs.

(American National Standards Institute, 1988)

 The Concept : quality ……
 Tosum up all the contemporary
definitions quality can be define as

“The totality of features or state of the

product or services that satisfies the
stated and implied need of the
customer.”
 Quality Definition

Quality is Quality is Quality is the degree

fitness for conformance to to which a specific
use. requirements. product conforms to
(Crossby, 1984) a design or
(Juran,1974) specification
(Feigenbaum, 1983)
Dimensions
of
Quality
 Dimensions of quality
(Product)
1. Performance
2. Features
3. Conformance
4. Reliability
5. Durability
6. Service
7. Response
8. Aesthetics
9. Reputation
 Dimensions of quality (Product)

1. Performance – Primary product characteristics such

as the brightness of the picture.

2. Features – Secondary characteristics, added

features, such as remote control.

3. Conformance – Meeting specifications or industry

standards. (products physical and performance
characteristic match with the set standards)
 Dimensions of quality (Product)
4. Reliability – Consistency of performance over time,
average time for the unit to fail.

5. Durability – Useful life includes repair.

6. Service – Resolution of problems and complaints, ease

of repair. The possibility to repair a product quickly and
with ease is serviceability.
 Dimensions of quality (Product)

7. Response – Human to human interface. It refers to the

degree they react and act quickly to resolve the problems.

8. Aesthetics – Sensory characteristics such as exterior

finish. It is the manner in which a product looks feels,
tastes or smells.

9. Reputation – Past performance and other intangibles,

such as being ranked first.
Awareness
 Organization must aware that
product or service quality
must be improved

 Awareness comes when

organization
- lost market share, profit and growth
- more customer complaint
Total Quality Management
• TOTAL—Made up of the whole.

• QUALITY—Degree of excellence a product

or service provides.

• MANAGEMENT—Act, art, or manner of

handling, controlling, directing, etc.
 TQM: Some Definition
 TQM has been defined in various ways

 TQM is a management system. It is a system that

comprises a set of integrated philosophies, tools
and processes used to accomplish business
objectives by creating delighted customers and
happy employees.
(Price and Chen 1993)

 Quality management is the way of working and

managing that combines the capabilities of all
employees for continuous improvement of every
process with the main purpose of increasing
customer satisfaction”
(Thor 1994)
 TQM: Some Definition……

 “TQM is a pragmatic long term systems approach

initiated and driven by the top management to bring
about a total change culture and interlink and
integrate everyone, every functions, every process
and every activity of the organization through
involvement, participation to meet the dynamic needs
of the customer and create diversified customer
based”
(R.P. Mohanty and R.R. Lake 1998)
 TQM: Some Definition……

 “TQM is an organized scientific approach towards

continuous improvement of quality involving everyone
in the organization covering every function aimed
towards total customer satisfaction.
(Mukarje P.)
TQM: Features
 TQM: Features
 According to the above definition TQM has the
following features.

 TQM is a pragmatic long-term system

approach.

 TQM is initiated and driven by top

management.

 TQM aims at bringing about a total cultural

change in every facet of the organization.
 TQM: Features…….

 TQM interlinks and integrates the various

subsystems of the organization.

 TQM require involvement, participation and

cross- functional management.

 TQM aims at meeting the dynamic needs of

the customer and creates diversified customer
base.
BASIC CONCEPTS OF TQM
TQM requires six basic concepts:

I.A committed and involved management

II.Focus on the customer

III.Entire work force involvement

IV.Continuous improvement

V.Treating suppliers as partners.

VI.Establish performance measures.

 BASIC CONCEPTS OF TQM
 A committed and involved management
 A committed and involved management to provide long-term
top-to-bottom organizational support.
 Must participate in quality programs.
 Quality council – to develop clear vision, set long term goals,
and direct quality programs.
 Annual quality programs (involve entire workforce)
 Should act as coaches.
 TQM should communicate all people.
 BASIC CONCEPTS OF TQM

 Focus on the customer

 Key aspect
 Do it right the first time & every time.

 Should listen to the voice of customers.

 BASIC CONCEPTS OF TQM
 Entire work force involvement
 Organization wide challenge that need everyone’s
responsibility.
 All personnel should be trained in TQM

 Understand the plan better than anyone else

 Changing behavior

 Continuous improvement
 Should improve all business and processes.
 BASIC CONCEPTS OF TQM
 Treating suppliers as partners.
 Partnering relationship should be developed.
 Few but true partnering because loss and gain
affect for both

 Establish performance measures.

 Such as reduce defects, absenteeism, customer
satisfaction should be developed.
 Should communicate for everyone.
 The purpose of TQM….
 TQM aimed is an enhancement to the
traditional way of doing business.

 Transformation organizational management

culture.
Traditional Management
Vs

TQM
 The purpose of TQM

Provide quality product or High quality

service to customer by product and
increasing productivity lower price
and lower cost (Expanded market)

Organization achieve
The work force
objectives, profit ,
have job security
and growth
 TQM Framework

 The TQM consist two approach to continuous

improving for organization.

 Principle and practices

 Tools and techniques
Total Quality Framework
 Gurus of TQM

 Shewhart
 Deming
 Feiganbaum
 Ishikawa
 Crosby
 Taguchi
Walter Andrew Shewhart
 Born: March 18, 1891
 Died: March 11, 1967
 He was an American physicist, engineer and
statistician
 Best Known for: Control chart Theory, PDSA
cycle
 Edwards Deming
 Born: October 14, 1900
Died: December 20, 1993

 Edwards Deming was a prominent consultant,

teacher, and author on the subject of Quality.

 Best known for: ​The 14 Points of Managing,

the Deming Cycle, and the System of Profound
Knowledge.
Kaoru Ishikawa
 Born: July 13, 1915

 Died: April 16, 1989

 Best known for: ​Ishikawa Diagram, Seven

Basic Quality Tools, Quality Circles, Company-
wide Quality
Armand Feigenbaum
 ​ orn: 6 April 1922
B
 Died: Nov 13, 2014

 ​ rmand Feigenbaum is an American quality

A
control expert and businessman.

 Best known for: ​Total Quality Control, Hidden

Plant, and Quality Costs
Philip Crosby
 Born: ​Jun 18, 1926
 Died: ​Aug 18, 200​6

 Best known for: ​Quality is Free, Zero Defects

and Four Absolutes of Quality
Genichi Taguchi

 Born: Jan 1, 1924

 Died: June 2, 2012
 Is Best Known For:
 Taguchi Methods
 Taguchi Loss Function

 Design of Experiments
 Historical Development of TQM
 The concept of division of labor and specialization were
introduced during the industrial revolution.
entire product is not made, only a
portion.

Decline the workmanship

Productivity improved, Cost reduced

and lower the customer expectations.

As a result the quality of the product

deterioration.

The defects in produce item were high.

 Historical Development of TQM
 In 1924 W.A. Shewhart
develop a statistical
chart for the control of
product variable.

 This chart is
considered to be the
beginning of statistical
quality control.
 Historical Development of TQM….
 Later H. F. Dodge and H.G. Roming developed the area
of acceptance sampling.

 Unfortunately US managers failed to recognize its value.

 In 1946 the American Society for Quality Controlled

(ASQ) was formed (recently named as American Society
for Quality).

 This organization through its publications, conferences,

trainings, promoted the use of quality for production and
service.
Historical Development of TQM….
 In 1950 W.E. Deming (who learned statistical control
chart from Shewhart), gave a series of lectures on
statistical methods and quality to Japanese engineers
and CEO’s of Japan company.

 In 1954 Juran, first trip to Japan and emphasized the

management responsibility to quality. Using these
concepts the Japanese set the quality standards for
rest of the world to follow.

 In 1960, the first quality circles were formed for

purpose of quality improvement. Simple statistical
techniques were learned and applied by Japanese
worker.
 Historical Development of TQM….
 In 1970 US manager relies important of quality and applied
because they had face more competition from Japan
companies.

 Quality recovery occurred in 1980 in USA, the concept of TQM

were being publicized.

 In late 1980 the automotive industry began to applied Statistical

Process Control (SPC). Later other industry and the department
of defense also implemented SPC.

 In 1981 the Malcom Baldrige National Quality Award was

established to measure TQM.
Historical Development of TQM….

 In late 1980 Taguchi introduced Design of

Experiment (DOE) quality improvement tool.

 In 1990 ISO 9000 became the worldwide quality

management system.

 In 1996 ISO 14000 was approved as a model for

environment management system.

 The new millennium TQM increase through the

Internet.
 Obstacles for TQM
 Lack of management commitment.

 Inability to change organizational culture.

 Improper planning.

 Lack of continues training and education

 Incompatible organizational structure and

isolated individual and department.
 Obstacles for TQM……

 Ineffective measurement techniques and lack of

access to data and result.

 Paying inadequate attention to internal and

external customers

 Inadequate use of empowerment and teamwork

 Failure to continually improve

 Benefit of TQM
 TQM helps to focus clearly on the needs of
market.

 TQM facilitates to aspire for a top quality

performer in every sphere of activity.

 It channelises the procedures necessary to

achieve quality performance.

 It helps examine critically and continuously all

processes to remove non productive activities
and waste.
 Benefit of TQM………
 It helps organization to dynamic changes in the
global market.

 It helps to develop good procedures for

communication and acknowledging good work.

 It helps to review the process needed to develop

the strategy of never ending improvement.