Total Quality

Management
and the
Transition To
Business Excellence

Dr. Rick L. Edgeman

SIX SIGMA BLACK BELT
Professor & Chair
Department of Statistics
415 Brink Hall
University of Idaho
Moscow, Idaho 83844-1104

redgeman@uidaho.edu
The TQM philosophy
derives from one
foundational idea:
everything must be geared
towards customer
satisfaction, the engine
which drives the company
and on which its future
survival depends.
 Aim: Increase external and internal customer satisfaction
with a reduced amount of resources
Values Control
Tools
Top Management Relation Factorial Charts
Commitment Focus on Diagram Design
Processes Criteria of
Improve Focus on Matrices MBNQA
Continuously Customers Ishikawa Tree
Diagram Process Diagram
Let Everybody
Base Decisions Maps
be Committed ISO Quality
on Fact 9000
Quality Function Hypothesis House
Deployment testing
Quality Employee
Circles Supplier
Development
Partnership
Bench- Process
marking Management Policy
Deployment
Self- Design of
assessment Experiment Six
Total Quality Sigma
Management Methodologies

Total Quality Management (TQM) can be seen as a continuously evolved management system, consisting of values, methodologies and tools. The
aim of the system is to increase external and internal customer satisfaction with a reduced amount of resources. It is important to note, that the
techniques and tools in the figure are just examples and not a complete list. In the same way the values may also vary a little between different
organisations and over time. (From Hellsten & Klefsjö, 2000.)
 What is Quality?
Continuous Satisfaction of
Customer Requirements

A ‘Customer-Centric’ View
 What is
Quality Management?
Achievement of Quality at Low Cost.
 What is
Total Quality
Management?

Attainment of
Total Quality
Through Everyone’s
Commitment on a Daily Basis
SO …..
Quality is a state in which value entitlement is realized
for the customer and provider in every aspect of the
business relationship.

Business quality is highest when the costs are at

the absolute lowest for both the producer & consumer
and is most readily attained when the entirety of the
organization’s human resource is engaged..
 Anything Else is Just a Killer

Renault’s
Five Principles of a New Culture
Fundamentally, organizational culture
can be thought of as
“the way we do things around here.”
 The Customer is the Ultimate Judge of Value
The Search for a Lean Approach
Controlling the Process Means Reducing Dispersion
Involving & Empowering People
The Spiral of Continuous Improvement

Quality Culture Principles

 Quality

People
Processes
Cus
Reducing Waste Sat tome
isfa r
ctio
n
Progress Through S-PDSA Cost

Delivery
 Bu
CE sin
EN es
L s
E L
C

Organizational
EX

Performance
 an overall way of working
that balances stakeholder interests and
increases the likelihood of
sustainable competitive advantage
and hence long-term organizational success
through operational, customer-related, financial
and marketplace performance excellence.

Edgeman, Dahlgaard, Dahlgaard & Scherer, 1999

 An Aligned Approach to Organizational
Performance Management That Results In:

Harry Hertz
15 Sept. 2000

•Delivery of Ever-Improving Value to Customers, Resulting in

Marketplace Success;
•Improving Organizational Effectiveness and Capabilities; and
•Organizational and Personal Learning.
 The comprehensive, systematic, and
regular review of an organization’s activities
and results against a specified model.
Purpose:
Identification of strengths, weaknesses and
opportunities for improvement.

The Principal Use of Excellence

Business Excellence Principles
• Leadership & Constancy of Purpose
• Customer Focus
• Results Orientation
• Management by Processes & Facts
• People Development & Involvement
• Continuous Learning, Innovation &
Improvement
• Partnership Development
• Public Responsibility
European Quality Award Excellence
Criteria
People
Processes
Leadership
Policy & Strategy
Key Performance Results
Partnerships & Resources
Customer Results
Society Results
People Results
 Input Transform Output
Inform

The EQA Excellence Model as an

Input-Transform-Output-Inform Model
 r -
lo de Leadership
eh lan
ak P

es
t
S ste r

Pa
ourc
d
e Ma

r tn
Peopl
c
la an ven

ers
Res
B Dri Policy & Strategy

hip
e

s
Processes

va tit le
Society

Ad pe b
a nc e

nta ive
ina
le
op Results

Co sta

ge
Pe

rm
Orienta

Su
tion

m
Perfo
Custom
er

From TQM to Business Excellence