Chapter 2: TQM Philosophies

TOTAL QUALITY
MANAGEMENT
BY
DR. ASIF MAHMOOD
drasif@uet.edu.pk
Institute of Business & Management

University of Engineering and Technology,

Lahore

THE QUALITY GURUS

W EDWARDS DEMING
(1900-1993)

EDWARDS DEMING

Developed courses during World War II to teach statistical

quality-control techniques to engineers and executives of
companies that were military suppliers

After the war, began teaching statistical quality control to

Japanese companies

The best known of the early pioneers, is credited with

popularizing quality control in Japan in early 1950s

Today, he is regarded as a national hero in Japan and is the

father of the world famous Deming prize for quality

Developed PDCA

DEMINGS 14-POINT
MANAGEMENT PHILOSOPHY
Demings theory of management defines the steps
required for transforming a companys quality culture
Its adoption and implementation would be a sign that
the management intends to stay in business and aims to
protect investors and jobs.

DEMINGS 14-POINT MANAGEMENT

PHILOSOPHY
1.
2.
3.
4.
5.

Create constancy of purpose for continual

improvement of products & service
Adopt the new philosophy for economic
stability
Cease dependence on inspection to achieve
quality
End the practice of awarding business on price
tag alone
Improve constantly & forever the system of
production & service

DEMINGS 14-POINT MANAGEMENT

PHILOSOPHY
6.
7.
8.
9.
10.

Institute training on the job

Adopt & institute modern methods of
supervision & leadership
Drive out fear & create trust
Remove barriers between departments &
individuals
Eliminate the use of slogans, posters and
exhortations for the work force

DEMINGS 14-POINT MANAGEMENT

PHILOSOPHY
11.
12.
13.
14.

Eliminate numerical quotas for the work force

Remove barriers that rob people of pride of
Workmanship
Encourage education and self-improvement for
everyone
Take action to ensure top managements
permanent commitment to accomplish the
transformation

DEMINGS SEVEN DEADLY

DISEASES
1.

Lack of constancy of purpose

2.

Emphasis on short-term profits

3.

Evaluation by performance, merit rating, or annual

review of performance

4.

Mobility of management: Job-Hopping

5.

Running a company on visible figures alone (many

important factors are "unknown and unknowable)

6.

Excessive medical costs

7.

Excessive costs of warranty, fueled by lawyers who work

for contingency fees

JOSEPH JURAN
(1904-2008)

Quality does not happen by accident, it

must be Planned! Juran

JOSEPH JURAN
Juran with Romanian origin was an electrical engineer
Juran, like Deming was invited to Japan in 1954 by the
Union of Japanese Scientists and Engineers (JUSE).
He focuses on top-down management and technical methods
rather than worker pride and satisfaction.
The Juran Institute is today one of the leading quality
management consultancies in the world and it produces
books, workbooks, videos and other materials to support the
wide use of Dr. Jurans methods.

BIG Q CONCEPT BY JURAN

Big Q emphasizes that quality is not just the concern of
production or even of total quality within an organization but
extends further to the linkage between organizations and
includes all service organizations and operations.
The concept of customer extends beyond those immediately
involved with producing a product or service.
It also includes stakeholders who have a legitimate concern,
such as legislators and consumer groups.
Total Quality efforts known as efforts for Big Q.

TRILOGY

Juran developed the idea of trilogy

Quality

Planning

Quality

Improvement

Quality

Control

The Juran Trilogy Diagram

Quality
planning

Quality Control- during Operations

Cost of
poor
quality

Sporadic spike

40

Original
zone of
Quality
control

Operation
region20

Chronic waste
Opportunity for
improvement. Quality improvement

0
0

Time
Lessons learned

New zone
of quality
control

QUALITY PLANNING
Quality does not happen by accident, it must be
planned.
Identify the customers both external and internal.
Determine customer needs & translate it into a
language everybody can understand.
Establish quality goals that meet the needs of
customers and suppliers alike, and do so at a
minimum combined cost.
Optimize the product by developing & optimizing the
process which produces this product.
Prove process capabilityprove that the process can
meet the quality goals under operating conditions.

QUALITY CONTROL
Control is the process of detecting & correcting
adverse change, as soon as it happens, so that the
status quo is maintained.
Conforming to quality specifications & adhering to
standards & procedures require prompt corrective
action of any sporadic problems.
Only a process in control is predictable & hence
receptive to efforts for further improvement.
Resulting in reduction of chronic waste.

QUALITY IMPROVEMENT
A Quality break through is needed to reduce
substantially the chronic waste & achieve a new
improved zone of quality control
Quality break through takes us to an unprecedented
level of performance, reducing incidence of chronic
defects & their associated cost.
Clear priorities for projects to be set & responsibility
for guiding the projects has to be assigned.
Otherwise no desire for improvement.

PHILIP CROSBY
(1926-2001)

PHILIP CROSBY
Corporate V.P. for quality at International
Telephone
Believed that zero defects is a realistic goal
Defined the cost of quality as:
Expense of nonconformance
Authored book entitled Quality is Free

PHILIP CROSBY
Quality is free . . .
Quality

is free. Its not a gift, but it is

free. What costs money are the unquality
things -- all the actions that involve not
doing jobs right the first time.

FOUR ABSOLUTES OF QUALITY

MANAGEMENT
First

Absolute: Quality is defined as

conformance to requirements, not as goodness or
elegance
Once

the requirements are specified, then quality is

judged solely on the criteria of whether it is met or
not.
Aesthetics or feelings do not come into it.

Second

Absolute: The system for creating

quality is prevention, not appraisal

The only prerequisite of prevention is an

understanding of the process.
Implementation of Statistical Process Control can
provide the understanding needed.

FOUR ABSOLUTES OF QUALITY

MANAGEMENT
Third

Absolute: The performance standard must be

Zero defects, not thats close enough

Setting targets below 100 per cent is the start of a

downward spiral.

But unless the right conditions are created and the

techniques are provided to reach this target, such a
treatment of this concept can only create anxiety,
frustration and mistrust toward management

Fourth

Absolute: The measurement of quality is the

Price of Nonconformance, not indices

The costs due to rejects, reworking, warranty costs etc. are

mainly the result of not doing things right first time.
These can very well represent 20-40% of the total
operating costs.

If the people do not feel happy and

cannot be made happy, that
company does not deserve to Exist

KAORU ISHIKAWA
(1915-1989)

KAORU ISHIKAWA
Ishikawa being engineering graduate was a Professor
(Tokyo University)
Promoted use of Quality Circles
Developed cause and effect diagram (also called
fishbone or ishikawa diagram)
Emphasized importance of internal customer

KAORU ISHIKAWA

He was known for the use of the seven basic tools

of quality:
Pareto

analysis: which are the big problems?

Cause and effect diagrams: what causes the problems?
Stratification: how is the data made up?
Check sheets: how often it occurs or is done?
Histograms: what do overall variations look like?
Scatter charts: what are the relationships between
factors?
Process control charts: which variations to control and
how?

GEN'ICHI TAGUCHI
(1924- 2012)

GEN'ICHI TAGUCHI
Taguchi, basically a textile engineer, has made a very
influential contribution to industrial statistics. The
key elements of his quality philosophy are:
Taguchi loss function
A quality product is a product that causes a minimal
loss (expressed in money!) to society during it's
entire life. The relation between this loss and the
technical characteristics is expressed by the loss
function
Taguchi loss function is used to measure financial
loss to society resulting from poor quality

SHIGEO SHINGO
1990)

(1909-

SHIGEO SHINGO
Shigeo Shingo (studied mechanical engineering) was a
Japanese industrial engineer who distinguished himself
as one of the worlds leading experts on manufacturing
practices and The Toyota Production System. Shingo is
known far more in the West than in Japan.
Shigeo Shingo is strongly associated with Just-in-Time
manufacturing, and was the inventor of :

The

single minute exchange of die (SMED) system, in which

set up times are reduced from hours to minutes, and
The Poka-Yoke (mistake proofing) system.

Zero quality control is the ideal production system and

this requires both Poka-Yoke and source inspections.

TAIICHI OHNO
(912 1990)

TAIICHI OHNO
Graduated with mechanical engineering degree
Worked for the Toyoda Weaving Company
Toyota Motor as machine shop manager
Workplace Management ~ just-in-time and Toyota
Production System
(later known as Lean Manufacturing).
regarded as the father of
Just-In-Time (JIT) at Toyota.

OHNO: SEVEN FORMS OF WASTE

Transportation

Inventory

Motion

Waiting

Overproduction

Over processing

Defects