MANAGEMENT

OF QUALITY
P r e p a r e d b y : S o fi a J o y C . T i b e r i o
QUALITY
The ability of a product or
service to consistently meet
or exceed customer
e x p e c t a ti o n s .
QUALITY
The ability of a product or
service to consistently meet
or exceed customer
e x p e c t a ti o n s .
THE EVOLUTION OF
QUALITY MANAGEMENT

 INDUSTRIAL REVOLUTION
S k i l l e d c r a ft s m e n p e r f o r m e d a l l s t a g e s o f
p r o d u c ti o n , o n e p e r s o n o r a s m a l l
group of people were responsible for an
e n ti r e p r o d u c t
 Division of Labor accompanied the Industrial
Re v o l u ti o n : e a c h w o r ke r w a s t h e n r e s p o n s i b l e
f o r o n l y a s m a l l p o r ti o n o f e a c h p r o d u c t
THE EVOLUTION OF
QUALITY MANAGEMENT

 Re s p o n s i b i l i t y f o r q u a l i t y s h i ft e d t o t h e
“ f o r e m e n ”, 1 0 0 % i n s p e c ti o n w a s u s e d

 Fr e d e r i c k W i n s l o w Ta y l o r t h e “ Fa t h e r o f
S c i e n ti fi c M a n a g e m e n t ” g a v e n e w e m p h a s i s t o
q u a l i t y b y i n c l u d i n g p r o d u c t i n s p e c ti o n a n d
gauging in his list of fundamental areas of
manufacturing management.
[ YOUR WEBSITE HERE ]
THE EVOLUTION OF
QUALITY MANAGEMENT

 G.S Radford improved Taylor’s method.

 Two most significance contributions - notions of

involving quality considerations early in the product
design stage, and making connections between high
quality, increased productivity and lower costs.
1924
B e l l Te l e p h o n e L a b o r a t o r i e s
I n t r o d u c e d s t a ti s ti c a l c o n t r o l
charts , could be used to monitor
p r o d u c ti o n
 1930
H , F D o d g e a n d H . G Ro m i g ,
also Bell Labs
Introduced tables for
1940 sampling.

U S A R M Y, B e l l L a b s , a n d
m a j o r u n i v e r s i ti e s
were training engineers in
other industries in the use of
s t a ti s ti c a l s a m p l i n g t e c h n i q u e s
 1950
The quality movement evoleved
into quality assurance

To t a l q u a l i t y c o n t r o l e ff o r t s
1960 enlarged the real, of quality
e ff o r t s f r o m i t s p r i m a r y f o c u s o n
manufacturing to also include
The concept of “zero defects” product design and incoming raw
gained favor materials
This approach focused on
e m p l o y e e m o ti v a ti o n a n d
awareness.

Something else happened in the 1970’s
that had a global impact on quality
1970
1970
Quality assurance methods
gained increasing emphasis in
services including government
o p e r a ti o n s , h e a l t h c a r e , b a n k i n g
and travel industries

An embargo on oil sales

i n s ti t u t e d b y t h e O r g a n i z a ti o n
o f Pe t r o l e u m
E x p o r ti n g C o u n t r i e s ( O P E C ) ,
caused an increased share of
t h e a u t o m o b i l e m a r ke t .
 The Evolution of quality took dramatic shift from
quality assurance to a strategic approach to
quality.

 It was still reactive approach, the strategic

approach is proactive, focusing on preventing
mistakes from occurring in first place.

 Quality and an profits are more closely linked, also

place greater emphasis on customer satisfaction.
THE FOUNDATIONS OF MODERN QUALITY
MANAGEMENT: THE GURUS

Shewhart Control charts; variance reduction

Demimg 14 points; special versus common causes variation
Juran Quality is fitness-for-use; quality trilogy
Feigenbaum Quality is a total field; the customer defines quality
Crosby Quality is free; zero defects
Ishikawa Cause-and-effect diagrams; quality circles
Taguchi Taguchi loss function
Ohno and Shingo Continuous improvement
INSIGHTS ON
QUALITY
MANAGAMENT

Successful
management of
quality requires that
managers have
insights on various
aspects of quality
DEFINING QUALITY: The Dimensions of Quality

 One way to think about quality is the degree to which

performance of a product or service meets or exceeds
customers expectations.

 Customer expectations can be broken down into a number

of categories, or dimensions that customers use to judge the
quality of a product or service.
DEFINING QUALITY: The Dimensions of Quality
Product Quality.
Product quality is often judged on 8 dimensions of quality:

Performance - main characteristics of the product or service

Aesthetics - appearance, feel, smell, taste
Special feature - extra characteristics
Conformance – how well a product or service corresponds to design specifications
Reliability – consistency of the product
Durability – the useful life of the product or service
Perceived quality – indirect evaluation of quality (e.g., reputation)
Serviceability – handing of complaints or repairs
DEFINING QUALITY: The Dimensions of Quality
Service Quality.
Is often described using the following dimensions:
Convenience - the availability and accessibility of the service.
Reliability – the ability to perform a service dependably, consistently, and
accurately.
Responsiveness – the willingness of service providers to help customers in
unusual situations and to deal with the problems.
Time – the speed with which service is delivered.
Assurance – the knowledge exhibited by personnel who come into contact with a
customer and their ability to convey trust and confidence.
Courtesy – the way customers are treated by employees who come into contact
with them.
Tangibles – the physical appearance of facilities, equipment, personnel, and
communication materials.
DEFINING QUALITY: The Dimensions of Quality
Assessing Service Quality.
Widely used tool for assessing service quality is SERQUAL an instrument designed
to obtain feedback on an organization’s ability to provide quality service to
customers
1. Actual customer expectations and management perceptions of those
expectation.
2. Management perceptions of customer expectations and service-quality
specifications.
3. Service quality and service actually delivered
4. Service actually delivered and what is communicated about the service to
customers.
5. Customers’ expectations of the service provider and their perceptions of
provider delivery.
 DEFINING QUALITY: The Dimensions of Quality
The Determinants of Quality.
The degree to which a product or a service successfully satisfies its intended
purpose has four primary determinants:

1. Design.
2. How well the product or service conforms to the design.
3. Ease to use.
4. Service after delivery.
.
DEFINING QUALITY: The Dimensions of Quality
The Consequences of Poor Quality.
It is important for management to recognize the different ways in which the quality
of a firm’s products or services can affect the organization and to take these into
account in developing and maintaining a quality assurance program. Some of the
major areas affected by quality are:

1. Loss of business
2. Liability
3. Productivity
4. Costs

.
DEFINING QUALITY: The Dimensions of Quality
Benefits of Good Quality.
Business organization with good or excellent quality typically benefit in a variety
of ways: an enhanced reputation for quality, the ability to command premium
prices, an increased market share, greater customer loyalty, lower liability costs,
fewer production or service problems-which yields higher productivity, fewer
complains from the customers, lower production costs, and higher profits.
DEFINING QUALITY: The Dimensions of Quality
Responsibility for Quality.
It is true that all members of an organization have some responsibility for quality, but
certain parts of the organization are key areas of responsibility:
 Top management - has the ultimate responsibility for quality.
 Design – quality products and services begin with design.
 Procurement – procurement department has responsibility for obtaining goods
and services that will not detract from the quality of the organization’s goods
and services.
 Production/Operation – has responsibility to ensure that processes yield
products and services that conform to design specifications.
 Quality Assurance – responsible for gathering and analyzing data on preblems
and working with operations to solve problems.
DEFINING QUALITY: The Dimensions of Quality
Responsibility for Quality.
It is true that all members of an organization have some responsibility for quality, but
certain parts of the organization are key areas of responsibility:
 Packaging and Shipping – this departments must ensure that goods are not
damaged in transit, that packages are clearly labeled, instructions are included,
all parts are included, and shipping occurs timely manner.
 Marketing and Sales – this department has the responsibility to determine
customer needs and to communicate them to appropriate areas of the
organization.
 Customer Service – is often the first department to learn of problems.

.
DEFINING QUALITY: The Dimensions of Quality
The Cost of Quality.
Any serious attempt to deal with quality issues must take into account the costs
associated with quality:
 Appraisal costs relate to inspection, testing, and other activities intended to
uncover defective products or services, or to assure that there are none.
 Prevention costs relate to attempts to prevent defects from occurring
 Failure costs are incurred by defective parts or products or by faulty services.
 Internal failures are those discovered during the production process.
 External failures are those discovered after delivery to the customer.
.
DEFINING QUALITY: The Dimensions of Quality
Ethics and Quality Management.
All members of an organization have an obligation to perform their duties in an
ethical manner. Ethical behavior comes into play in many situations that involve
quality. One major category is substandard work, including defective products
and substandard service, poor designs, shoddy workmanship, and substandard
parts and raw materials.
 Organizational Profile
Environment, Relationships, and Challenges

2 5
Strategic Human
planning resource
focus

1 7
Leadership Business
results
3 6
Customer Process
and market management
focus

4
Measurement, analysis, and knowledge management
QUALITY AWARDS

Quality awards have been established to generate awareness and

interest in quality. The Malcolm Baldrige Award, the European Quality
Award, the International Asia Pacific Quality Award(IAPQA), and the
Deming Prize are well-known awards given annually to recognize firms
that have integrated quality management in their operations.
 QUALITY AWARDS

The Baldrige Award

In 1987, the U.S Congress passed the Malcolm Baldrige National
Quality Improvement Act. The legislation was designed to inspire
increased efforts on the part of organizations located in the United
States to improve the quality of their products and services.

Benefits of the Baldrige competition:

1. Winners achieve financial success

2. Winners share their knowledge
3. The process motivates employees
4. The process provides a well-designed quality system
5. The process requires obtaining data
6. The process provides feedback
 QUALITY AWARDS

The European Quality Awards

The European Quality Awards is Europe’s most prestigious award for
organizational excellence.
Four categories of awards:

1. Award Winner. The European Quality Award is presented annually to

the organization judged to be the best in each of the awards
categories.
2. Price Winners. Prizes are presented annually to organizations that
excel in some of the fundamental concepts such as leadership.
3. Finalists. Each year, several finalists may be declared in each category.
4. Recognized for excellence. This indicates that the organization is well
managed and aspires to achieve role model status
 QUALITY AWARDS

The International Asia Pacific Quality Award

The International Asia Pacific Quality Award is given to organizations in
countries bordering the Pacific Ocean and the Indian Ocean.

The Deming Prize

The Deming Prize, named in honor of the late W. Edwards Deming, is
Japan’s highly coveted award recognizing successful quality efforts.
QUALITY CERTIFICATION

 The International Organization for Standardization (ISO) promotes

worldwide standards for the improvement of quality, productivity, and
operating efficiency through a series of standards and guidelines.
 Two of the most well-known of these are ISO 9000 and ISO 14000
 ISO 9000 pertains to quality management
 ISO 14000 concerns what an organization does to minimize harmful
affects to the environment caused by its operations.
 ISO 9000 standards – system requirements, management requirements,
resource requirements, realization requirements, remedial requirements
QUALITY CERTIFICATION

Eight quality management principles form the basis of the latest version of
ISO 9000
1. A customer focus
2. Leadership
3. Involvement of people
4. A process approach
5. A system approach to management
6. Continual improvement
7. Use of a factual approach to decision making
8. Mutually beneficial supplier relationships
QUALITY CERTIFICATION

The standards for ISO 14000 certification bear upon three major areas:
1. Management systems – system development and integration of
environmental responsibilities into business planning
2. Operations – consumption of natural resources and energy
3. Environmental systems – measuring, assessing, and managing emissions,
effluents, and other waste streams
THANK
YO U
Total Quality
Managemen
t
PREPARED BY: CRISTEL JOY BALDICAÑAS
otal quality management (TQM) refers to a quest for quality in an
n.

e are three key philosophies in this approach.

er-ending push to improve, or continuous improvement;
olvement of everyone in the organization;
omer satisfaction.

M expands the traditional view of quality

y at the quality of the final product or services - to looking at the quality
pect of the process that produces the product or service.
tems are intended to prevent poor quality from occurring.
can describe the TQM approaches as follows:
out what customers want.
gn a product or service that will meet (or exceed) what customers want.
gn processes that facilitate doing the job right the first time. Determine
e mistakes are likely to occur and try to prevent them.
track of result, and use them to guide improvement in the system.
op trying to improve.
nd these concepts to suppliers and distributors.

These descriptions provide a good idea of what TQM is all about.

1. Continuous improvement. 6. Knowledge of tools.

2. Competitive benchmarking. 7. Supplier quality.
3. Employee empowerment. 8. Champion.
4. Team approach. 9. Quality at the source.
5. 10. Suppliers
Decisions based on facts rather are partners in the process
than opinions.
SIX SIGMA

Six-sigma programs have become a key to improve quality, save time,

and cut costs. 
It can be pioneered
Motorola deployed inthe
design, production,
concept service,
of a six sigma inventory
program management
in the 1980s.
and delivery.
After that, many other companies have adopted the six sigma program
into their operations, including Lenovo, Toshiba, Posco, and China
Airlines.
MANAGEMENT AND TECHNICAL COMPONENTS OF SIX-SIGMA PROGRAMS
The Management The Technical components
Components
Providing strong leadership Improving process performance
Defining performance metrics Reducing variation
Selecting projects likely to Utilizing statistical methods
achieve business results
Selecting and training Designing a structured
appropriate people improvement strategy 
(definition, measurement,
analysis, improvement, and
For six-sigma to succeed in any organization, top
management must formulate and communicate the
company's overall objectives and lead the program.

The key players in six-sigma programs are program

champions. They were categorized as follow;
• Master Black Belts – have extensive training in statistics
and use of quality tools. They also act as teachers and
mentors of black belts.
• Black Belts - are project team leaders responsible
for implementing process improvement projects. 
• Green Belts -  are of project teams

BLACK BELTS play a pivotal role in the sucess of six-sigma

programs.
OBSTACLES TO IMPLEMENTING 
TQM
• Lack of a companywide definition of
quality 
• Lack of strategic plan for change
• Lack of a customer focus
• Poor intraorganizational communication
• Lack of employee empowerment
• View of quality as a "quick fix"
• Emphasis on short-term financial results
• Inordinate presence of internal politics and
"turf" issues
• Lack of strong motivation
• Lack of time to devote to quality initiatives
• Lack of leadership
PROBLEM
SOLVING
Is one of the basic
procedures of TQM. In order to
be successful, problem-solving
efforts should follow a
standard approach.
The important aspect
of problem-solving in the TQM
approach is eliminating the
cause.
Users of TQM approach
often like to think of problem
as "opportunities for
improvement."
THE PLAN-DO-
STUDY-ACT CYCLE
- Also referred to as either the
Shewhart cycle or the Deming
wheel, is the conceptual basis for
problem-solving activities.
 Plan – document that process.

Do – implement the plan.

Study – evaluate the data

collection during the DO, check
how closely the results match
the goals of the PLAN.

Act – standardize the

successful result. If not revise
the plan and repeat the
process.
Employing this sequence of steps  provides a systematic approach to continuous
improvement.
PROCESS IMPROVEMENT
- a systematic approach to improving process.
- it involves documentation, measurement, and analysis for the purpose
of improving the functioning of a process.

Typical goals of process improvement include;

• Increasing customers satisfaction
• Achieving higher quality
• Reducing waste
• Reducing cost
• Increasing productivity 
• And reducing processing time.
QUALITY TOOLS

Tools aid in data collection and interpretation, and provide the basis
for decision making. 
The first seven tools are often referred to as the seven basic quality
tools.
1. Flowchart
2. Check sheet
3. Histogram
4. Pareto chart
5. Scatter diagram
6. Control chart
7. Cause-and-effect diagram
8. Run chart
FLOWCHART
Isa visual representation of a
process. 
A flowchart can help investigators in
identifying possible points in a process
where problems occur.
                           DAY
DEFECT 1 2 3 4 CHECK
A III IIII I SHEET
B II I II III A TOOL FOR ORGANIZING AND
COLLECTING DATA; A TALLY OF PROBLEMS
C I IIII II IIII OR OTHER EVENTS BY CATEGORY.  
HISTOGRAM 
A CHART THAT SHOWS AN
EMPIRICAL FREQUENCY
DISTRIBUTION.
 PARETO
CHART
A DIAGRAM THAT ARRANGES
CATEGORIES FROM HIGHEST TO
LOWEST FREQUENCY OF
OCCURRENCE.

This Photo by Unknown author is licensed under CC BY-SA.

 Scatter
Variable B

Diagram 
A GRAPH THAT SHOWS THE
DEGREE AND DIRECTION OF
RELATIONSHIP BETWEEN TWO
VARIABLES.

Variable A
Control
Chart
A STATISTICAL CHART OF
TIME-ORDERED VALUES OF
A SAMPLE STATISTICAL
(E.G., SAMPLE MEANS)
CAUSE-AND-
EFFECT
DIAGRAM
USED TO ORGANIZE A SEARCH
FOR THE CAUSE(S) OF A
PROBLEM; ALSO KNOWN AS A
FISHBONE DIAGRAM
RUN
CHART
TOOL FOR TRACKING RESULTS
OVER A PERIOD OF TIME.
 Employing graphical tools in problem
solving 
Check sheet: Type of error by location

                Type of Error

Location C B D A E

1 II I III I A
B C
D E
2 I II II II

3 I IIII II IIII I

Pareto diagram: A errors by location

4 3 2 1 Cause and effect diagram: A errors

METHODS FOR GENERATING IDEAS

Additional tools that are

useful for problem solving
and for process
improvement are
brainstorming, quality
circles, interviewing, and
benchmarking.
Brainstorming 
A TECHNIQUE FOR
GENERATING A FREE FLOW
OF IDEAS IN A GROUP OF
PEOPLE.
AFFINITY
DIAGRAM Category A Category B
Brainstorming
brainstorming brainstorming brainstorming
brainstorming
Is a widely used tool for Brainstorming Brainstorming Brainstorming
brainstorming
organizing data (ideas, Brainstorming brainstorming Brainstorming

issues, problems) brainstorming brainstorming

develop by a group of brainstorming brainstorming 
brainstorming
brainstorming 
brainstorming
participants into logical
categories for further
Category C
analysis. 
Brainstorming
brainstorming brainstorming brainstorming
brainstorming

Brainstorming
In short, Affinity diagram Brainstorming
brainstorming
brainstorming brainstorming

is a tool used to organize brainstorming

data in logical brainstorming  brainstorming brainstorming

categories. 
QUALITY CIRCLES
GROUPS OF WORKERS
WHO MEET TO DISCUSS
WAYS OF IMPROVING
PRODUCTS OR
PROCESSES.
QUALITY CIRCLES HAVE
EVOLVED INTO CONTINUOUS
IMPROVEMENT TEAMS. 
QUALITY CIRCLES HAD A VERY
LITTLE AUTHORITY TO IMPLEMENT
ANY BUT MINOR CHANGES
CONTINUOUS IMPROVEMENT TEAMS
ARE SOMETIMES GIVEN A GREAT
DEAL OF AUTHORITY.
Either approach works best when it reaches decisions
based on consensus. This may involve one or more of the
following methods:
1. List reduction is applied to a list of possible problems
or solutions. 
2. A balance sheet approach list the pros and cons of
each item and focuses discussions on important
issues. 
3. Paired comparisons is a process by which each item on
a list is compared with every other item, two at a
time. 
Interviewi
ng 
INTERVIEWING
TECHNIQUE FOR
IDENTIFYING
PROBLEMS AND
COLLECTING
INFORMATION.
Benchmarking 
Is a process of measuring
an organization's
performance on a key
customer requirement
against the best in the
industry, or against the
best in any industry.
THANK YOU FOR LISTENING