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CBMEC 1
OPERATIONS MANAGEMENT
& Total Quality Management
History of Quality Management
JEOFFREY R. ESCALA, BSME, MMExM, CSP
Facilitator
 DOES QUALITY MATTER?
SCOTT PATTON, in his column “First Word” in the September
2004 issue of Quality Digest says that he thinks it still does. He
observed: “Has quality advanced to the point where everyone’s
quality is so good that quality is no longer an issue? After all, is
one airline really so different from another? Their plane maybe
configured a little differently and they may board a little
differently, but they all get you from point A to point B for about
same price and at the same level of safety… Or could it be
quality has gotten so bad that the quality isn’t a factor in buying
decisions?
QUALITY IN SERVICE ORGANIZATIONS
TWO MOST IMPORTANT DRIVERS OF SERVICE QUALITY ARE PEOPLE AND
TECHNOLOGY.

RECRUITING AND SELECTING THE RIGHT TYPES OF INDIVIDUALS AND TRAINING

THEM ARE VERY IMPORTANT.

HIGH QUALITY SERVICE WORKERS REQUIRE EFFECTIVE REWARD SYSTEMS THAT

RECOGNIZE CUSTOMER SATISFACTION RESULTS.

THE LARGEST IMPACT OF IT FOR SERVICE HAS BEEN IN E-COMMERCE.

 1450 BC WALL PAINTINGS SHOW EVIDENCE OF
MEASUREMENT AND INSPECTION
STONES FOR THE PYRAMIDS WERE CUT SO PRECISELY THAT EVEN TODAY IT IS
IMPOSSIBLE TO PUT A KNIFE BLADE BETWEEN THE BLOCKS.

THE EGYPTIANS SUCCESS WAS DUE TO THE FOLLOWING:

- GOOD DESIGN
- CONSISTENT USE OF WELL-DEVELOPED BUILDING METHODS AND PROCEDURES
- PRECISE MEASURING DEVICES

CUBIT ROD
PLUMB BOB, LINE AND SQUARE
 ZHOU DYNASTY (1046 – 256 BCE)

The production of handicraft was organized into five

governmental departments:
1.) Production, collection, storage, and distribution of raw
and semi-finished materials
2.) Manufacturing and assembly of finished products
3.) Storage and distribution of finished products
4.) Formulation and implementing standards
5.) Supervision and examination of products
The central government issued policies and procedures to control production
across China – including the production of utensils, carts, cotton, and silk. They
prohibited the sale of nonconforming, inferior, and substandard products.
 MIDDLE AGES (500 AD – 1500 AD)
THE SKILLED CRAFTSPERSON SERVED BOTH AS
MANUFACTURER AND INSPECTOR.

A GUILD IS AN ASSOCIATION OF ARTISANS AND

MERCHANTS WHO OVERSEE THE PRACTICE OF THEIR
CRAFT/TRADE IN A PARTICULAR AREA.

GUILDS WERE ORGANIZED SO THAT WORKERS WOULD LEARN SKILLS FROM

OTHERS CONNECTED WITH THE GUILD. TRADE SECRETS REMAIN WITHIN THE
GUILD.

AN APPRENTICE EARNS NO MONEY.

A JOURNEYMAN ARE PAID BY THE DAY.

TO BECOME A MASTER, JOURNEYMEN HAD TO PRODUCE A MASTERPIECE TO

DEMONSTRATE THEIR SKILL IN THEIR TRADE WHICH IS THEN VOTED BY GUILD
MEMBERS. SOME MASTERS WERE CHOSEN TO BE INSPECTORS TO ENSURE
THAT OTHER GUILD MEMBERS’ PRODUCTS WERE OF A HIGH STANDARD.
 18TH CENTURY
IN THE 18TH CENTURY ALL FIREARMS WERE CONSTRUCTED BY HAND. EVERY GUN WAS A
ONE-OF-A-KIND POSSESSION, A GUN BROKEN COULD NOT BE EASILY REPAIRED.

HONORÉ BLANC (1736 – 1801) A FRENCH GUNSMITH, SUGGESTED THAT GUN PARTS BE
MADE FROM STANDARDIZED PATTERNS SO THAT ALL GUN PARTS CAN BE EASILY REPLACED
WHEN BROKEN. ON JULY 1785 IN A DEMONSTRATION OF A NEW TYPE OF FLINTLOCK
MUSKET, HE DISASSEMBLED THE RIFLE, MIX THEIR COMPONENTS AND THEN CALMLY
PULLED OUT PARTS AT RANDOM AND REASSEMBLE THEM INTO FLINTLOCKS.

INTERCHANGEABLE PARTS NECESSITATED A CAREFUL CONTROL OF QUALITY. THE

PARTS MUST BE PRODUCED CONFORMING TO A DESIGN STANDARD.
IN 1789 THOMAS JEFFERSON (THE 3RD US PRESIDENT) WAS
SERVING AS AN AMERICAN MINISTER TO FRANCE, VISITED
LEBLANC’S WORKSHOP AND BROUGHT THE IDEA TO AMERICA.

IN 1797, THE US CONGRESS VOTED TO PREPARE AMERICA FOR

WAR WITH FRANCE. ELI WHITNEY OBTAINED A GOVERNMENT
CONTRACT TO MANUFACTURE 10,000 MUSKETS IN LESS THAN 2
YEARS. IT TOOK HIM 10 YEARS. WHITNEY DIVIDED LABOR
EFFICIENTLY AMONG HIS LARGELY UNSKILLED WORKFORCE AND
BUILDING PRECISION EQUIPMENT THAT ENABLED THE
PRODUCTION OF LARGE NUMBERS OF IDENTICAL PARTS QUICKLY
AT A RELATIVELY LOW COST. HE PRODUCED 15,000 MORE
WITHIN THE NEXT 4 YEARS.
 EARLY 1900’s
FREDERICK WINSLOW TAYLOR (1856 – 1915) FATHER OF
SCIENTIFIC MANAGEMENT THEORY. MECHANICAL ENGINEER.

HIERARCHY
-CLEAR CHAIN OF COMMAND THAT SEPARATED MANAGERS
FROM WORKERS.
- MANAGERS DESIGN WORK PROCESS AND ENFORCE HOW
THE WORK WAS PERFORMED.
-EMPLOYEES SIMPLY FOLLOWED DIRECTIONS

METHOD: TIME AND MOTION STUDIES

TIME = WHAT IS THE LEAST AMOUNT OF TIME, ON AVERAGE, IT TOOK TO PERFORM
EACH TASK?
MOTION = WHAT WHERE THE FEWEST NUMBER OF MOTIONS REQUIRED FOR EACH
SMALL TASK?
ON DECEMBER 1, 1913 FORD MOTOR COMPANY CREATED THE FIRST MOVING
ASSEMBLY LINE FOR THE MASS PRODUCTION OF AN ENTIRE AUTOMOBILE (MODEL
T) IN HIGHLAND PARK, MICHIGAN. HIS INNOVATION REDUCED THE TIME IT TOOK
TO BUILD A CAR FROM MORE THAN 12 HOURS TO 1 HOUR AND 33 MINUTES.

NEW AUTOMATED MACHINERY AND OTHER LABOR-SAVING TOOLS ADDED TO THE

EFFICIENCY OF PRODUCTION IN THE FACTORY DRIVING DOWN THE CAR’S RETAIL
PRICE FROM $950 TO $260 WITHIN A DECADE.

FORD BROKE THE MODEL T’S ASSEMBLY INTO 84 DISCRETE STEPS AND TRAINED HIS
WORKERS TO DO JUST ONE. HE ALSO HIRED FREDERICK TAYLOR.

STANDARDIZED INTERCHANGEABLE COMPONENTS CONVEYOR BELT IN AUTO-VEHICLE ASSEMBLING PROCESS

IN AUTO ASSEMBLY PROCESS
 FORD’S INNOVATIONS

1. STANDARDIZATION – FORD’S PRODUCTION LINE DID NOT PROVIDE VARIATION

FROM THE BEST PRACTICE.
2. HIGH WAGES – EMPLOYEES RECEIVED GOOD PAY.
3. WASTED MOVEMENT – HIS FACTORIES WERE DESIGNED SO THAT WORKERS
COULD ACCOMPLISH THEIR GIVEN TASKS WITH THE FEWEST STEPS AND
MOVEMENTS.
4. JUST-IN-TIME MANUFACTURING – MANAGED HIS SUPPLY CHAIN TO HAVE
ENOUGH MATERIALS ON-HAND TO MANUFACTURING BASED ON DEMAND.
5. CUSTOMER SERVICE – CARS CONSISTENTLY ARRIVED ON TIME AS SCHEDULED
TO THE CUSTOMER.

“Quality means doing it right when no one is looking.” –HENRY FORD

 1920’S
THE QUALITY CONTROL PHASE BEGAN IN THE 1920’S THROUGH WORK DONE FIRST
IN THE INSPECTION ENGINEERING DEPARTMENT OF WESTERN ELECTRIC AND THEN
IN THE NEWLY FORMED BELL TELEPHONE LABORATORIES.

IN ORDER TO ENSURE PRODUCT QUALITY, COMPANIES NEEDED TO UTILIZE THE

“FULL INSPECTION” METHOD. THIS WAS COSTLY, SINCE IT REQUIRED MUCH TIME
AND LABOR EFFORTS, AND RESULTED IN HIGH INTERNAL QUALITY COST.

WALTER A. SHEWHART (1891 – 1967); WORKING AS A

QUALITY CONTROL ENGINEER IN BELL LABORATORIES;
CREATED THE CONTROL CHART. HE PROPOSED THE USE OF A
SAMPLING INSPECTION METHOD INSTEAD OF A 100%
INSPECTION.
STATISTICAL QUALITY CONTROL – THE USE OF STATISTICAL METHODS IN THE
MONITORING AND MAINTAINING OF THE QUALITY OF PRODUCTS AND SERVICES.

ACCEPTANCE SAMPLING – CAN BE USED WHEN A DECISION MUST BE MADE TO

ACCEPT OF REJECT A GROUP OF PARTS OR ITEMS BASED ON THE QUALITY FOUND IN
A SAMPLE.

STATISTICAL PROCESS CONTROL – USES GRAPHICAL DISPLAYS KNOWN AS CONTROL

CHARTS TO DETERMINE WHETHER A PROCESS SHOULD BE CONTINUED OR SHOULD
BE ADJUSTED TO ACHIEVE THE DESIRED QUALITY

RUN CHART SHEWHART CONTROL CHART

POST WORLD WAR 2 (1945 – EARLY 1950’s)
AFTER THE WAR, THE JAPANESE ECONOMY WAS DEVASTATED. THEIR GOODS WERE
SHODDY BY INTERNATIONAL COMPARISON. MOREOVER THEY COULD NOT AFFORD
THE WASTAGE OF RAW MATERIALS THAT POST-PRODUCTION INSPECTION
PROCESSES WERE BROUGHT ABOUT.

W. EDWARDS DEMING BECAME INVOLVED WITH THE UNION OF JAPANESE

SCIENTISTS AND ENGINEERS AND THUS TOTAL QUALITY MANAGEMENT HAD
BEGUN. DEMING ADVISED THE JAPANESE NOT TO COPY THE AMERICAN-STYLE
INSPECTION SYSTEM BUT TO INCORPORATE QUALITY CONTROL PRINCIPLES INTO
THE MANUFACTURING PROCESS.

JURAN’S QUALITY CONTROL HANDBOOK ATTRACTED THE ATTENTION OF THE

UNION OF JAPANESE SCIENTISTS AND ENGINEERS WHICH INVITED HIM TO JAPAN
IN 1952. JURAN WORKED INDEPENDENTLY OF W. EDWARDS DEMING.
 1970’s
GENERAL ELECTRIC TASK FORCE STUDIED CONSUMER PERCEPTIONS OF VARIOUS
GE PRODUCTS.

PRODUCT LINES WITH RELATIVELY POOR REPUTATIONS FOR QUALITY

CHARACTERISTICS:
- DEEMPHASIZE THE CUSTOMER’S VIEWPOINT
- REGARD QUALITY AS SYNONYMOUS WITH TIGHT TOLERANCE AND
CONFORMANCE TO SPECIFICATIONS
- TIE QUALITY OBJECTIVES TO MANUFACTURING FLOW
- EXPRESS QUALITY OBJECTIVES AS THE NUMBER OF DEFECTS PER UNIT
- USE FORMAL QUALITY

PRODUCT LINES THAT RECEIVED CUSTOMER PRAISE CHARACTERISTICS:

- EMPHASIZE SATISFYING CUSTOMER EXPECTATIONS
- DETERMINE MARKET NEEDS THROUGH MARKET RESEARCH
- USE CUSTOMER-BASED QUALITY PERFORMANCE MEASURES
- FORMALIZED QUALITY CONTROL SYSTEMS IN PLACE FOR ALL BUSINESS
FUNCTIONS, NOT JUST MANUFACTURING
 GENERAL ELECTRIC 1970’S PRODUCTS

F101 ENGINE FOR B1 BOMBER

LM2500 ENGINE FOR NAVAL DESTROYER

PELTON TURBINE FOR HYDROELECTRIC POWER

 ENABLERS OF QUALITY, CUSTOMER SATISFACTION, AND BUSINESS RESULTS:
- LISTEN TO CUSTOMERS AND DEVELOP LONG-TERM RELATIONSHIPS
- DEVELOP STRATEGY
- MEASURE PERFORMANCE AND ANALYZE DATA
- REWARD AND TRAIN EMPLOYEES
- DESIGN AND DELIVER PRODUCTS AND SERVICES
-ACT AS LEASERS IN THEIR ORGANIZATION
 1990’s
“TOTALQUALITY IS THE UNYIELDING AND
CONTINUALLY IMPROVING EFFORT BY EVERYONE IN
AN ORGANIZATION TO UNDERSTAND, MEET, AND
EXCEED THE EXPECTATIONS OF CUSTOMERS”
 SIX SIGMA
SIX SIGMA IS A QUALITY CONTROL METHODOLOGY DEVELOPED IN 1986 BY
MOTOROLA INC. IT PROVIDES ORGANIZATIONS TOOLS TO IMPROVE THE
CAPABILITY OF THEIR BUSINESS PROCESSES. THIS INCREASE IN
PERFORMANCE AND DECREASE IN PROCESS VARIATION HELPS LEAD TO
DEFECT REDUCTION AND IMPROVEMENT IN PROFITS, EMPLOYEE MORALE,
AND QUALITY OF PRODUCTS OR SERVICES.

SIX SIGMA POINTS TO THE FACT THAT, MATHEMATICALLY, IT WOULD TAKE

SIX-STANDARD DEVIATION EVENT FROM THE MEAN
FOR AN ERROR TO HAPPEN.
 EXAMPLES OF SIX SIGMA TOOLS
DMAIC – DEFINE, MEASURE, ANALYZE, IMPROVE, CONTROL. HELPS IN CREATING
CONTINUOUS IMPROVEMENT IN YOUR PROCESSES, PRODUCTS, AND METHODS.

DMADV – DEFINE, MEASURE, ANALYZE, DESIGN, VERIFY. USED TO DEVELOP A NEW

PROCESS, PRODUCT, OR SERVICE.

5 WHYS – ROOT CAUSE ANALYSIS. PART OF THE ANALYZE PHASE OF DMAIC.

5S – SORT, SET IN ORDER, SHINE, STANDARDIZE, SUSTAIN.

REGRESSION ANALYSIS

PARETO CHART

KAIZEN (CONTINUOUS IMPROVEMENT)

KANBAN SYSTEM
QUALITY IN MANUFACTURING

FUNCTIONAL RELATIONSHIPS IN A TYPICAL MANUFACTURING SYSTEM

QUALITY IN SERVICE ORGANIZATIONS
TWO MOST IMPORTANT DRIVERS OF SERVICE QUALITY ARE PEOPLE AND
TECHNOLOGY.

RECRUITING AND SELECTING THE RIGHT TYPES OF INDIVIDUALS AND TRAINING

THEM ARE VERY IMPORTANT.

HIGH QUALITY SERVICE WORKERS REQUIRE EFFECTIVE REWARD SYSTEMS THAT

RECOGNIZE CUSTOMER SATISFACTION RESULTS.

THE LARGEST IMPACT OF IT FOR SERVICE HAS BEEN IN E-COMMERCE.

QUALITY FUNCTIONS OR DEPARTMENTS
ROLES

Quality Control
Metrology
Training
Auditing
Reliability Engineering
Problem Solving
 QUALITY AND PERSONAL VALUES
Nordstrom’s customer service stories are legendary, and include employees
who have ironed a new shirt for a customer who needed it that afternoon,
one who warmed customers’ cars in winter while they shopped, and even one
who refunded money for a set of tire chains, even though Nordstrom does
not sell them!
 Les Clefs d’Or
GOLDEN KEY HOTEL CONCIERGE
Service through Friendship
NETWORK OF NEARLY 4,000 MEMBERS FROM MORE THAN 50 COUNTRIES.

When he worked in New York, he recalls, a guest requested a

specific barbecue sauce that was only produced in small
batches in Louisiana — and that he wanted to have shipped
to his home in the Caribbean for a garden party the next
day. With the help of the network, Ipecki fulfilled the
request. – BBC.COM
“I received a request at 11 p.m. one night to organize a private plane. Not a small
private plane, though. It was for more than 100 people, leaving in the morning in
eight or nine hour's time. Except it was not from Cannes, but from Morocco to
another country. The request came from a person who was taking care of a big
family, a royal family, who was on vacation at The Carlton. It was quite a
challenge, as you can understand.” – CNN.COM
QUESTIONS?