Department of Education

REGION IX
Western Mindanao
A urora P ioneers M emorial C ollege
(FORMERLY: Cebuano Barracks Institute)
Bonifacio St. Pob. Aurora Zamboanga Del Sur
Tel. No. : (062) 331-2332

OFFLINE LEARNING MODULE

Course Code: MGT. 21

Course Title: TOTAL QUALITY MANAGEMENT

STUDENT NAME: ___________________________________

ADDRESS: ___________________________________
CONTACT NUMBER: ___________________________________
EMAIL: ___________________________________
COURSE/ YEAR: ___________________________________
INSTRUCTOR: ___________________________________
SCHOOL YEAR: ___________________________________ SUMMER:________

PRETEST: In your own words, answer the following questions briefly.

1 What are the mandatory quality procedures? ...
2 What is your approach towards quality improvement activities? ...
3 What is the difference between product and process quality?

LEARNING OBJECTIVES: Having successfully completed this module you will be able to:
1. introduce the students to the evolution and history of quality
management and quality gurus
2. is to systematically introduce students to the tools for identifying, measuring,
analyzing, improving and controlling of quality

LESSON 1: TQM EVOLUTION

Activity 1: TRUE or FALSE

LESSON 2: QUALITY COSTS

Activity 2: ESSAY

LESSON 3: LEADERSHIP
Activity 3: MULTIPLE CHOICE
Activity 4: ENUMERATION
LESSON 4: TQM IMPLEMENTATION
Activity 5: MULTIPLE CHOICE
Activity 6: MATCHING TYPE

LESSON 5: CUSTOMER SATISFACTION

Activity 7: TRUE OR FALSE

LESSON 6: EMPLOYEE INVOLVEMENT

Activity 8: ESSAY
Activity 9: MULTIPLE CHOICE

LESSON 7: PROCESS APPROACH

Activity 10: MULTIPLE CHOICE

LESSON 8: CONTINUOUS PROCESS IMPROVEMENT

Activity 11: MATCHING TYPLE

LESSON 9: SUPPLIER PARTNERSHIP

Activity 12: TRUE OR FALSE

SUMMATIVE ASSESSMENT: MIDTERM & FINAL EXAM

PERFORMANCE TASK: Study the workplace effectiveness in any organization of your

choice and suggest how the present situation can be improved using the 5S tools?

REFERENCES: Total Quality Management book by Subburaj Ramasamy

McGRAW-HILL INTERNATIONAL EDITION
LESSON 1: TQM EVOLUTION
Total Quality Management – is customer oriented management philosophy and strategy.
It is centered on quality so as to result in customer delight.
Quality – defined as fitness for use.

♦Dimension of Quality
1. Product Quality
•Functionality – refers to the core features and characteristics of a product.
•Realibility – is measured by mean (average) time between failures. It is also an
indicator of durability of products.
•Usability – a product should be easily usable.
•Maintainability – refers to the ease with which a product can be maintained in the
original condition.
•Efficiency – is the ratio of output to input.
•Portability – is defined as a set of attributes that bear on the ability of software to be
transferred from one environment to another
2. Service Quality Features
•Quality of Customer Service – it is important in every business.
•Quality of Service Design – since services are usually made to order, it is important
that the service is designed as per the requirements of the specific customer.
•Quality of Delivery – it is important in any sector, but more crucial in case of
services.
•Timeliness – delivery on schedule as per requirements of the customer is a must both
in the product sector as well as in service sector.
•Aesthetics – a product or service should not only perform well but also appear
attractive.
•Regulatory Requirements – as stipulated by the local and federal governments
should be fulfilled is an important element of quality.
•Requirements of Society – the product should fulfil both the stated and implied
requirements imposed by society.
•Conformance to Standards – product or service should conform to the stated and
implied requirements of customers.

♦CONTRIBUTORS IN THE EVOLUTION OF QUALITY\

- Dr Walter A Shewhart (1891-1967)
- Deming W. Edwards (1900-1993)
- Joseph M. Juran (1904)
- Philip B. Crosby (1926)
- Armand V. Feigenbaum
- Kaoru Ishikawa (1915-1989)
Activity 1: TRUE OR FALSE
1. Quality plan is the result of quality planning
2. QC means verification
3. QC is part of QA
4. Portability is applicable to software
5. Chain reaction refers to the effect of improving quality
6. Conformance to requirements is one of the four absolutes of quality
7. Quality system consists of only procedures
8. Society is not a stakeholders of an organization
9. Customer service is important only to services
10. Quality has to be built into the product and services
11. Quality is only for highly prices items
12. Building quality requires quality of design, manufacturing and service
13. Quality affects productivity
14. Efficiency is one of the attributes of quality
15. Economic Control of Quality of Manufactured Products is a book authored by Shewhart.

METHODS OF INSTRUCTION: MODULAR

LESSON 2: QUALITY COSTS

Cost of Quality – is the sum of costs incurred by an organization in preventing poor

quality.
• 3 Types of Quality Costs
- Prevention Costs
- Appraisal Costs
- Failure Costs
♦Classification of Failure Costs
- Internal Failure Costs includes costs of every failure that takes place before the
products is delivered to the customer.
- External Failure Costs these are on cost of failure of the product after its delivery to
the customers.
♦Prevention Costs
- It has to be incurred. Every preventive activity should have been pre-planned to avoid
wastes during the process.
♦Reduction of Failure Costs
- Manufacturing or delivery of a product or a service with defects is a total waste.
Everything should be done right the first time and every time. There should be no
occasions to reject a product or a service either at the initial stage, the intermediate
stages, or at the final stages.
ACTIVITY 2: ESSAY
- Explain briefly
1. Cost of conformance
2. Cost of non-conformance
3. TQM and Quality costs

METHODS OF INSTRUCTION: MODULAR

LESSON 3 – LEADERSHIP

♦Total Quality Management

o Is an umbrella concept encompassing many good management techniques.
TQM is a management approach of an organization centered of quality, based
on the participation of all employees and aiming at long-term success. This
will result in customer satisfaction and benefit to all employees and society.
♦TQM is
o Management approach of an organization
o Quality is the nucleus
o Involvement of every employee is essential
o Aims at long-term success
o Aims at customer satisfaction and benefits to the employee and society
o Most effective way to achieve the objectives of the organization
o Management philosophy and organization practices
o Aimed at harnessing human and material resources of the organization
•Nine elements of quality management are essential for TQM implementation. Out of these
leadership is the most important one. Top management should lead the organization into TQM.

•As Crosby says senior management is 100% responsible for the problem with quality and their
continuance. According to Harrington between 70 and 85% of all errors can only be corrected by
management. Thus, leadership for TQM is essential. TQM has to be led by the top management.
Their commitment to TQM is the most important ingredient for TQM to be successful in any
organization.

•Deming’s 14 points for top management have been given to the Japanese management in the
1950s. The points are relevant even today. The effectiveness of the points could be judged from
the success of Japan.

•10 Strategies which could be adopted by the CEO for leading the organization on TQM
principles.
- Proactive management
 - Adventurous and Bold change management
- Do Right Things and Do It Right First Time
- Continuous preventive action
- Caring for little things and accumulate gains
- Ensure economic performance
- Management by walking around
- Measure for success
- Never rest on laurels, continue to improve
- Build virtual organization

Activity 3: MULTIPLE CHOICE

1. TQM is
a. Cost of effective quality management
b. Continuous quality improvement
c. Preventive quality management
d. All of the above
2. Elements of TQM include:
a. Quantitative methods
b. Leadership
c. Focus on process
d. All of the above
3. Deming’s 14 points include:
a. Giving quantitative target to workers
b. Institute training
c. Depend on inspection
d. None of the above
4. For TQM to happen, top management must
a. Be proactive
b. Maintain processes
c. Communicate rarely
d. All of the above
5. Quality values includes:
a. Productivity first
b. Quality assurance manager leads
c. Top management believes in continuous improvement
d. None of the above

ACTIVITY 4: ENUMERATION
1-10 What are the 10 TQM Principles?

METHODS OF INSTRUCTION: MODULAR

LESSON 4 – TQM IMPLEMENTATION
♦An organization should enter into TQM only after thorough analysis of the requirements
of resources, changes to be made in the management of the organization and the benefits
the organization is going to get out of TQM.
♦They should realize that TQM is a never-ending process and it will take some time to
see success. They should not adopt TQM unless they are convinced about TQM.
♦They should also realize that there is no other alternative. Through TQM, the CEO
would be creating hundreds of empowered teams to take on the TQM journey in a
continuous manner. The formal organization framework for TQM consists of the QC
members who are ex-officio and one full time TQM facilitator assisted by a few support
staff.
♦The initial stages, the organization needs to have a consultant, since consultants will be
able to enable changes easily. The consultant will also train the QC members and TQM
facilitators.

ACTIVITY 5: MULTIPLE CHOICE

1. The leadership for implementing TQM has to remain with
a. Consultant
b. CEO
c. All employees
d. None on the above
2. PDS cycle includes
a. Act
b. Cost
c. Check
d. All of the above
3. TQM methodologist include:
a. JIT
b. QFD
c. DOE
d. All of the above
4. The long term objective of the organization is contained in
a. Vision
b. Quality policy
c. Mission
d. None of the above
5. The quality council is chaired by
a. TQM facilitator
b. CEO
c. All of the above
d. None of the above
 ACTIVITY 6: MATCHING TYPE
A B
PDSA Quality Function Deployment
PDCA Edwards Deming
QFD Design of Experiment
DOE Shewart
JIT Just-In-Time

METHODS OF INSTRUCTION: MODULAR

LESSON 5 – CUSTOMER SATISFACTION

♦The service industry all over the world employs more people than all the manufacturing
industries put together although the latter may be responsible for generation of more wealth.
Furthermore service industry plays an important role in improving the quality of life of the
human beings. However the service industry has its unique problems.
♦Each understanding the customer’s requirements much more difficult than in the manufacturing
sector. It is also difficult to estimate the cost.

♦Customer satisfaction is the most fundamental requirement for being in business. Therefore,
every organization should plan the right strategies for dealing with customers, communicating
with them, providing pleasant services and retaining them forever with speciallychoosen
customer contact employee, all leading to their delight.

♦the Kano Model for quality helps in understanding three types of quality namely, basuc,
performance, and excitement.

♦the service provider should have a systematic method for finding out the customers stated and
implied needs with the help of a checklist and code of good customer handling practices

♦Computing customer satisfaction is essential in every organization. There are no hard fast rules
for such measures and every organization should evolve their own measures.

♦A feedback or a complaint criticizing the organization should be taken as a blessing in disguise

and in the right spirit.

ACTIVITY 7 – TRUE OR FALSE

1. Service sector employs the largest number of people

2. Software development is a service
3. Speed is more critical in service
 4. Each service offering is different
5. Psychology of customers is difficult to predict
6. There are peak hours in service
7. It is easy to measure performance
8. Cost is constant for each service
9. Customers needs for service always remains same
10. BPR cannot be applied in a service industry
11. Customers thrive on businesses
12. Customer delight is not possible
13. 50% of problems may be due to misunderstood requirement
14. Customer contact person should be tough with customers
15. Body language of customer should be noted.

METHODS OF INSTRUCTION: MODULAR

LESSON 6 – EMPLOYESS INVOLVEMENT

♦Employee motivation is a subject which is difficult to understand.

♦The behavior of the employees in an organization typically follows three
patterns:
1. The Top-Notch – who are self-actualized
2. The Middle One – who are fence sitters
3. The Bottom Most – who do not want to get motivated
♦The fence sitters join any one of the other groups depending upon the way in
which the organizations is managed.

•Self-actualized level – is the top most one and the physiological needs are the lowest.

♦Teamwork – is beneficial both to the individual employees as well as the

organization. However working in teams is not a natural human function. Therefore the
management should make it happen through various strategies such as training, forming
homogeneous teams, taming team breaks, rewarding teams rather than individuals.

♦Appropriate communications is vital in the organizations for long-term success.

Communication is a three way process for every employee.

♦Training of employees provides the highest return of investment. Every

employee recruited should undergo orientation training.

♦Recognition of achievement is an important management function. The best

performers employees, customers and suppliers should be recognized and rewarded.
 ♦Feedback is quite important for developing employees. Management should also
seek feedback on improvement actions taken. The feedback should be appropriate and timely.
The management should watch the effect of feedback.

♦ The topic of empowerment is given at the end of this chapter consciously. This
is to indicate that the activities explained before this topic should be carried out before
empowering employees.
ACTIVITY 8 – ESSAY
Explain Briefly:
1. What are the motivational techniques for employees?
2. Importance of Teamwork?
3. The role of management for teamwork?
4. Ways to improve communications within an organization?
5. Three way communications?

ACTIVITY 9 – MULTIPLEK CHOICE

1. According to Theory X, people

a. Are lazy
b. Don’t take responsibility
c. Hate to work
d. All of the above
2. According to Theory Y, employees
a. Want to learn
b. Develop self-discipline
c. Want to difficult and challenging work
d. All of the above
3. The motivational needs according to Hygiene theory are
a. Salary
b. Status
c. Security
d. None of the above
4. The needs and various states of employees according to Maslow are
a. Physiological
b. Self-actualization
c. Esteem
d. All of the above
5. Win-lose relationship
a. Generates more output
b. Fosters good relationship between colleagues
c. Wastes time
 d. None of the above

METHODS OF INSTRUCTION: MODULAR

LESSON 7 – PROCESS APPROACH

♦Process orientation as against product orientation should be preferred owing to its many
advantages. It helps in finding the defects early.
♦Process orientation helps in dividing the total work into manageable number of sub-
processes with defined input as well as output with defined value addition in the process.
♦ETX is a popular process model. This helps in easy identification of current status of the
process and taking action for further improvement continuously. It also helps in eliminating
reduntant processesand it brings in clarity and transparency in the organization. However,
process orientation will not come easily. It can come only through concerted efforts of the
management to educate the employees. Effectiveness of every process should be measured
through its various parameters. This will help improving the processes continuously, which is a
goal of TQM.

♦Subburaj’s 6S is a model for modern process improvement in a logical manner. This can
be applied for process improvement in every organization. During the study phase the process
has to be characterized. During the streamline phase, non-value adding processes should be
identified and eliminated. The remaining processes are measured periodically to accumulate the
gains made and further motivate the employees.

♦This process has to be repeated at periodic intervals on the same process and every
process and every process in the organization.

♦Customer-Supplier-Chains needs to be established in every organization for building

quality into products and services. Traditionally only external customer and suppliers were
treated as much. TQM calls for an employee performing both the roles. He may have an internal
or external customer as well as internal or external supplier. The process approach facilitates
establishing customer supplier chains. The organizations should be organized as a set of
processes. Each process owner will have customers and supplier. The customer supplier chains
have many advantages. Primarily, it helps in controlling quality of the process and thereby final
product quality. Above all, it helps the management to understand its own organization and
operations better.

♦Supply chain management is all about optimizing all activities throughout the supply
chain series of links and shared processes that exist between the suppliers and customers so that
the products and services are supplied at the right time and at the optimal costs.
 ♦JIT concept has evolved by Toyota in Japan many years ago. It is also known as zero
inventory program. JIT reduces expenditure of manufacturing, since it eliminates delay at all
stages of production. Employee should always feel they should not wait as well as they should
not make other wait. Practicing JIT is required in a TQM organization and the organization
should facilitate practicing JIT. The organization should plan to get materials, assemble it
immediately and deliver it to customer thereafter. In this manner, a lot of money will be saved
for the organization. But this calls for fulfilling a number of requirements. However, JIT is
practiced by many Japanese companies and hence it is certainly possible to practice JIT.

♦Lean manufacturing is also an umbrella concept consisting of many goods practices like
Kaizen, Kanban, Cellular manufacturing and one piece flow. Lean manufacturing enables JIT.
TQM or continuous improvement is needed in JIT as well as lean manufacturing. There is
definitely an overlap of these three strategies. However, TQM is the superset encompassing both
lean manufacturing and JIT.

♦Philip Crosby’s third absolute means that the performance standard should be zero
defects and nothing close to it. The traditional approach of AQL causes loss to the customers.
Therefore, one should try to achieve zero defects in every organization. Zero defects will occur
only when there is a will to achieve the same in the organization, because it is a difficult task.
Employees should also have the right mind-set for this to happen. They should determine not to
accept or pass on the defective work or product to others. They should also not put off the work
for lkater as well as do not put the blame on others for their fault. All this will happen, if there
system in the organization and a cultural change. Management commitment and never ending
enthusiasm is required for making this to happen.

Activity 10 – ESSAY
1. On your own analysis what is the importance of the process orientation?
2. What is the primary goal of the process approach?
3. Advantages of customer supplier chain?
4. Why should we practice JIT?
5. How to practice JIT?

METHODS OF INSTRUCTION: MODULAR

LESSON 8 – CONTINUOUS PROCESS IMPROVEMENT

♦In this chapter we got some tips for continuous process improvement. Jura’s
trilogy gives the analogy of financial control to quality control. Juran suggested quality
improvement chronic waste and reaching new zone of quality control.
 ♦Toyota Motor Organization, Japan pioneered the JIT manufacturing. To enable
JIT manufacturing and organization needs to apply Kaizen. Kaizen is a strategy for gradual,
continual improvement. The impact of Kaizen is tremendous.

♦Kaizen can be applies on a long-term basis for gradual improvement. This will
result in sustainable improvement. However, to suite the modern times, organization are
organizing the Kaizen Blitz or Kaizen Events. This lasts for a week, although, the preparation
for this event has to take place much before. A cross-functional team is selected beforehand to
take part in the Kaizen Blitz. The team after receiving training on Kaizen Blitz gets into the job
of improving the chosen process area. All this happens in a week’s time. After achieving JIT
manufacturing, Toyota embarked on improving their suppliers. They conducted a number of
Kaizen Blitzes in the suppliers premises. This had a tremendous impact among the suppliers for
JIT manufacturing and lean manufacturing. The seven deadly wastes identified by Toyota should
be eliminated in every organizations.

♦Practicing TQM requires application of simple tools by employees in their day-

to-day life in the office. Japanese skillfully employed these tools and attained all around
improvement in their organization. 5S tools were also developed and applied by the Japanese
formally. These are based on common sense, but at the same time, aimed at improving quality of
life in the organization. If 5S is in practice, then the organization’s productivity, efficiency and
quality of life in the organizations. If 5S is in practices, then the organization’s productivity,
efficiency and quality will improve continuously. Kaizen aims at reduction of three MUs and
standardization of methodologies.

♦5S does not say anything, which we do not know already. However, small things
which do not consume much of our time to learn and practice such as arranging things depending
on the usage, keeping places clean and tidy, evolving proper sign boards, safety precautions,
discipline, the persistence to see that the procedure is not deviated even in case of emergency, all
have a greater impact in the organization and, are the steps to learn and apply in the journey
towards TQM by all employees. 5S essentially means good housekeeping so that the employees
put all their best efforts in the main activity with improved quality, productivity and efficiency.
Thus 5S helps in improving workplace effectiveness.

♦We also discussed about Business Process Engineering (BPR) that helps in
achieving dramatic results through radical redesign of processes.

ACTIVITY 11 – MATCHING TYPE

A B

Seiri Standardize

Seiton Systematize

Seiso Sort
 Seiketsu Scrub

METHODS OF INSTRUCTION: MODULAR

LESSON 9 – SUPPLIER PARTNERSHIP

♦Supplier partnership is one of TQM elements. One of the reasons for success of
Toyota Motors and such other organizations is developing and nurturing good vendors or
suppliers of materials, parts, components and sub-assemblies. Hence, supplier partnership is very
essential for every organization. In this lesson, you will learn the following:

•Importance of suppliers

•Supplier selection

•Early involvement of suppliers in product development

•Product audit

•Vendor rating

•Bonus and Penalties

♦Vendor development is of strategic importance because expenditures saved by

improving the efficiency and productivity of vendors improves the competitiveness of the
company. The vendors should be treated as an extended arm of every organization. They should
be involved in development of new products so as to save cost and time.

♦A healthy relationship should be established between the company and its

vendors. It will be wise to select the right vendors at the first instance. For this purpose, the
quality system of the vendors and the quality of their products have go be thoroughly assessed.
Vendors rating is quite useful in evaluating objectively the quality, price and delivery of the
vendors in an ongoing manner.

♦The company should make the vendor take the responsibility for the quality of
the supplies. However, incoming inspection may be required to assess the continued quality of
the raw materials and supplies, which will also give data for vendor rating. In the contest of
virtual corporation, vendor development and supplier’s quality are very crucuial. Therefore, one
of the important requirements for TQM is the supplier’s quality, which requires constant
monitoring, systematic and sustained efforts by every organization.

ACTIVITY 12 – TRUE OR FALSE

_____1. Supplier seminar shall is essential for vendor development.

_____2. Support for infrastructure can be given.

_____3. Product audit is not necessary.

_____4. Supplier should be selected on price basis only.

_____5. Quality system should be aligned.

_____6. ISO 9000 certified vendors should be preferred.

_____7. Long-term contracts shall not be entered.

_____8. Irregular supplier should be rewarded.

_____9. Vendee refers to vendor.

_____10. Average vendor rating is the average of composite vendor ratings.

METHODS OF INSTRUCTION: MODULAR

♦Evaluation and Grading

In this course, you will be evaluated in the following way:

Final exam 25%

Midterm 20%

Quizzes Total 40%

Project 15%

TOTAL 100%