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Everyone has had experiences of poor quality whendealing with business organizations. These experiencesmight involve an airline that has lost a passengersluggage, a dry cleaner that has left clothes wrinkled or

stained, poor course offerings and scheduling at yourcollege, a purchased product that is damaged orbroken, or a pizza delivery service that is often late ordelivers the wrong order. The experience of poor qualityis exacerbated when employees of the company eitherare not empowered to correct quality inadequacies or

do not seem willing to do so. We have all encounteredservice employees who do not seem to care. Theconsequences of such an attitude are lost customersand opportunities for competitors to take advantage ofthe market need.

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Total Quality Management: An integrated effortdesigned to improve quality performance at everylevel of the organization

Today, there is no single universal definition of quality.Some people view quality as performance tostandards. Others view it as meeting the customers

needs or satisfying the customer.

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Leadership

Top management vision, planning and support.

Employee involvement

All employees assume responsibility for the quality of their work. Product/Process Excellence

Involves the process for continuous improvement.

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Conformance to specifications:How well a product or service meets the targets and tolerancesdetermined by its designers.Fitness for use

A definition of quality that evaluates how well the productperforms for its intended use.Value for price paidQuality defined in terms of product or service usefulness for theprice paid.Support services

Quality defined in terms of the support provided after theproduct or service is purchased.Psychological criteriaA way of defining quality that focuses on judgmentalevaluations of what constitutes product or service

excellence.

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Manufact

uring

Servic

es

Conformance to specifications

Performance

Reliability

Features

Durability

Serviceability

Tangible Factors

Consistency

Responsiveness to customer needs

Courtesy/Friendliness

Timeliness/Promptness

Atmosphere

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The concept of quality has existed for many years, though itsmeaning has changed and evolved over time. In the earlytwentieth century, quality management meant inspectingproducts to ensure that they met specifications. In the 1940s,during World War II, quality became more statistical in nature.Statistical sampling techniques were used to evaluate quality,and quality control charts were used to monitor theproduction process.In the 1960s, with the help of so-called quality gurus, theconcept took on a broader meaning. Quality began to beviewed as something that encompassed the entireorganization, not only the production process. Since allfunctions were responsible for product quality and all sharedthe costs of poor quality, quality was seen as a concept thataffected the entire organization

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The term used for todays new concept of quality is total quality management or

TQM. The figure below presents a timeline of the old and new concepts of

quality. You can see that the old concept isreactive, designed to correct quality

problems after they occur. The new concept is proactive, designed to build

quality into the product and process design.

Early 1900s 1940s 1960s 1980s andBeyond

Inspection StatisticalSampling

OrganizationalQuality Focus

CustomerDriven Quality

Old concept of Quality: Inspect for Quality afterProduction

New concept ofquality: Build

Quality into theprocess. Identify

and correctcauses of quality

problems

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Cause-and-Effect Diagrams: Cause-and-effect diagrams are charts thatidentify potential causes for particular quality problems. They are oftencalled fishbone diagrams because they look like the bones of a fish. Thehead of the fish is the quality problem, such as damaged zippers on a

garment or broken valves on a tire. The diagram is drawn so that thespine of the fish connects the head to the possible cause of theproblem.

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Flowcharts: A flowchartis a schematic diagram of the sequenceof steps involved in an operation or process. It provides a visualtool that is easy to use and understand. By seeing the stepsinvolved in an operation or process, everyone develops a clearpicture of how the operation works and where problems couldarise.

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Control Charts: These charts are used to evaluate whether aprocess is operating within expectations relative to somemeasured value such as weight, width, or volume. For example,we could measure the weight of a sack of flour, the width of atire, or the volume of a bottle of soft drink.

When the production process is operating within expectations,we say that it is in control.

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Checklists: A checklistis a list of common defects and thenumber of observed occurrences of these defects. It is a simpleyet effective fact-finding tool that allows the worker to collectspecific information regarding the defects observed.

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Scatter Diagrams: Scatter diagrams are graphs that show howtwo variables are related to one another. They are particularly

useful in detecting the amount of correlation, or the degree oflinear relationship, between two variables. For example,increased production speed and number of defects could becorrelated positively; as production speed increases, so does thenumber of defects.

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Pareto Analysis Pareto analysis is a technique used to identifyquality problems based on their degree of importance. The logic

behind Pareto analysis is that only a few quality problems areimportant, whereas many others are not critical.

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Histogram: A chart that shows the frequency distribution ofobserved values of a variable. We can see from the plot whattype of distribution a particular variable displays, such as

whether it has a normal distribution and whether the distributionis symmetrical.

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The PlanDoStudyAct Cycle describes the activities a company needs to perform in orderto incorporate continuous improvement in its operation. This cycle, shown in Figure 5-6 is alsoreferred to as the Shewhart cycle or the Deming wheel. The circular nature of this cycleshows that continuous improvement is a never-ending process. Lets look at the specificsteps in the cycle.

Plan The first step in the PDSA cycle is to plan. Managers must evaluate the current processand make plans based on any problems they find. They need to document all currentprocedures, collect data, and identify problems. This information should then be studied andused to develop a plan for improvement as well as specific measures to evaluateperformance.

Do The next step in the cycle is implementing the plan (do). During the implementation

process managers should document all changes made and collect data for evaluation.

Study The third step is tostudy the data collected in the previous phase. The data areevaluated to see whether the plan is achieving the goals established in the plan phase.

Act The last phase of the cycle is to act on the basis of the results of the first three phases.The best way to accomplish this is to communicate the results to other members in thecompany and then implement the new procedure if it has been successful. Note that this is

a cycle; the next step is to plan again. After we have acted, we need to continueevaluating the process, planning, and repeating the cycle again.

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Common Reasons for Failure of TQM:

Lack of a formalized strategic plan for change.

Lack of a customer focus.

Poor intra-organizational communication.

Lack of real employee empowerment.

Lack of employee trust in senior management.

View of the quality program as a quick fix.

Drive for short-term financial results.

Politics and turf issues.

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What are quality circles?

Voluntary groups of employees who

work on similar tasks or share an area ofresponsibility

They agree to meet on a regular basis todiscuss & solve problems related to work.

They operate on the principle thatemployee participation in decision-making and problem-solving improvesthe quality of work

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All members of a Circle need to receivetraining

Members need to be empowered Members need to have the support of

Senior Management

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Increase Productivity

Improve Quality

Boost Employee Morale

Quality Circles can be used in any organization, whether it isManufacturing, Service, Health Care, Education, etc.

They can be used to increase productivity. As anexample, members can discover newer and faster waysof producing a product or service.

They can be used to help improve quality of services aswell as products. If there are issues, members can analyzethe process and come up with solutions to make it better.This will improve quality and likely increase productivity aswell.

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Inadequate Training

Unsure of Purpose

Not truly Voluntary Lack of Management Interest

Quality Circles are not really empowered

to make decisions

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