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Head of Programme : Assoc Prof Huong Ha

Course Developer(s) : Dr Clarence Ng
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How to cite this Study Guide (APA):
Ng, C. (2024). BUS363 Total quality management. Singapore University of Social Sciences.

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Course Guide
Total Quality Management
1. Welcome

This streaming video requires Internet connection. Access it via Wi-Fi to avoid incurring data
charges on your personal mobile plan.
Presenter: Dr Clarence Ng

Welcome to the course BUS363 Total Quality Management, a 5 credit unit (CU) course.

This StudyGuide will be your personal learning resource to take you through the course
learning journey. The guide is divided into two main sections—the Course Guide and Study
Units.

The Course Guide describes the structure for the entire course and provides you with an
overview of the Study Units. It serves as a roadmap of the different learning components
within the course. This Course Guide contains important information regarding the course
learning outcomes, learning materials and resources, assessments and weightings, and
additional course information.

2. Course Description and Aims

Quality is an important element in every modern organisation and it will continue to play a
vital role in the organisations’ efforts to improve performance. The survival of businesses and
the economic performance of countries depends on the quality of goods and services they
produce and sell, and these depend on the quality of their workforce and management
practices.
This course provides you with knowledge of the fundamental principles, concepts and
techniques of Total Quality Management (TQM). We will first introduce the quality concepts
and the contributions of various quality gurus to the study of the subject. Next, we will
examine the principles and implementation of TQM as well as the major quality awards and
business excellence frameworks that are sought after by many organisations. We will also
cover the processes in obtaining the Voice of the Customer and the Voice of the Market.
Lastly, we will explore the various techniques that can be used to design and improve quality
in products and services.

Course Structure
This course is a 5-credit unit course.

There are six Study Units in this course. The following provides an overview of each Study
Unit.

Study Unit 1 – Quality Concepts

This study unit provides the context for understanding quality concepts and the contributions
of various quality gurus to quality management.

Study Unit 2 – Total Quality Management (TQM) in the Workplace

In this study unit, we will cover the principles and implementation strategies of Total Quality
Management (TQM) and the major quality awards and business excellence frameworks
sought after by organisations in their quest for excellent performance.

Study Unit 3 – Voice of the Customer and Voice of the Market

In this study unit, we will cover the process of gathering the Voice of the Customer and the
use of benchmarking to listen to the Voice of the Market.

Study Unit 4 – Design for Quality in Products and Services

In this study unit, we will explore the different techniques that can be used to design quality
in products and services.

Study Unit 5 – Improving Quality in Products and Services Part I

In this study unit, we will explore the use of Lean Six Sigma and its techniques to design
quality in products and services.

Study Unit 6 – Improving Quality in Products and Services Part II

In this study unit, we will explore the different techniques that can be used to improve quality
in products and services.

3. Learning Outcomes
Knowledge & Understanding (Theory Component)

By the end of this course, you will be able to:

Demonstrate the use of quality concepts.

Analyse the implementation of a Total Quality Management (TQM) programme in the
workplace.
Examine the application of the Voice of the Customer and Voice of the Market in TQM.
Evaluate the use of quality techniques in designing quality products and services and appraise
suitable quality techniques to improve quality in products and services.
Key Skills (Practical Component)

By the end of this course, you will be able to:

Develop the essential knowledge and interpersonal skills to work in teams.

Practice writing proficiency and prepare oral presentations.

4. Learning Material
To complete the course, you will need the following learning material(s):

Recommended Study Material(s) for Learning Activities (Optional)

Study Units and complementary readings assigned by the course leader.

5. Assessment Overview
The overall assessment weighting for this course is as follows:

Assessment

Description

Weight Allocation

Assignment 1
Pre-Class Quiz 01

2%

Pre-Class Quiz 02
2%

Pre-Class Quiz 03
2%

Assignment 2

Tutor-Marked Assignment

18%

Assignment 3

Group-based Assignment

20%

Class Participation

Participation during seminars

6%

ECA
End of Course Assessment

50%

TOTAL

100%

SUSS’s assessment strategy consists of two components: The Overall Continuous Assessment
Score (OCAS) and the Overall Examinable Score (OES), which make up the overall course
assessment score.

OCAS: OCAS constitutes 50% of the final grade for this course.
OES: The End of Course Assessment constitute 50% of the final grade.
To be sure of a pass result, you need to achieve scores of 40% or above in each component.
Your overall rank score is the weighted average of both components.

Passing Mark:

To successfully pass the course, you must obtain at least a mark of 40 percent for the OCAS
and also at least a mark of 40 percent for the OES. For detailed information on the Course
grading policy, please refer to The Student Handbook (‘Award of Grades’ section under
Assessment and Examination Regulations). The Student Handbook is available from the
Student Portal.

Non-Graded Learning Activities:

Activities for the purpose of self-learning are present in each study unit. These learning
activities are meant to enable you to assess your understanding and achievement of the
learning outcomes. The types of activities can be in the form of Formative Assessment, Quiz,
Review Questions, Application-Based Questions or similar. You are expected to complete the
suggested activities either independently and/or in groups.
6. Course Schedule
To pace yourself and monitor your study progress, pay special attention to your Course
Schedule. It contains study-unit-related activities including Assignments, Self-Assessments,
and Examinations. Please refer to the Course Timetable on the Student Portal for the most
current Course Schedule.

Note: Always make it a point to check the Student Portal for announcements and updates.
7. Learning Mode
The learning approach for this course is structured along the following lines:

Self-study guided by the study guide units. Independent study will require at least 3 hours per
week.
Working on assignments, either individually or in groups.
Classroom Seminars.
StudyGuide

You may be viewing the interactive StudyGuide, which is the mobile-friendly version of the
StudyGuide. The StudyGuide is developed to enhance your learning experience with
interactive learning activities and engaging multimedia. You will be able to personalise your
learning with digital bookmarking, note-taking, and highlighting of texts if your reader
supports these features.

Interaction with Instructor and Fellow Students

Flexible learning—learning at your own pace, space, and time—is a hallmark at SUSS, and
we strongly encourage you to engage your instructor and fellow students in online discussion
forums. Sharing of ideas through meaningful debates will help broaden your perspective and
crystallise your thinking.

Academic Integrity

As a student of SUSS, you are expected to adhere to the academic standards stipulated in the
Student Handbook, which contains important information regarding academic policies,
academic integrity, and course administration. It is your responsibility to read and understand
the information outlined in the Student Handbook prior to embarking on the course.

Study Units
Study Unit1

Quality Concepts
Learning Outcomes
At the end of this unit, you are expected to:

Apply Garvin’s quality dimensions to assess product quality.

Apply PZ&B’s quality dimensions to assess service quality.
Explain the impact of quality on the business firm.
Interpret the contributions of quality gurus to quality management.
Examine the quality management principles, practices and techniques.
Overview
This study unit provides the context for understanding quality concepts and the contributions
of various quality gurus to quality management.

Chapter 1 provides an overview of quality concepts. We begin by explaining the different

definitions of quality. We will then cover the dimensions of product quality and service
quality. We will end this chapter by examining how quality impacts a business firm and the
costs of quality.

Chapter 2 presents the contributions of several quality gurus to quality management. In this
chapter, we will highlight the following contributions:

14 Points of Management by W. Edwards Deming

Juran Trilogy by Joseph M. Juran
Absolutes of Quality by Philip Crosby
Seven Tools of Quality Control by Kaoru Ishikawa
Lastly, we will end the chapter by briefly examining quality management principles, practices
and techniques.
Chapter 1: Quality Concepts
This chapter provides an overview of quality concepts. We begin by explaining the different
definitions of quality. We will then cover the dimensions of product quality and service
quality. We will end this chapter by examining how quality impacts a business firm and the
costs of quality.

1.1 Defining Quality

Quality is a highly subjective concept and possesses many different definitions and
dimensions of quality. Different people may define quality differently. However, we can all
agree that “quality is a measure of goodness” of a product or service (Foster, 2016, p. 26).

Goetsch and Davis (2021, p. 3) presented common elements found in various definitions:

“Quality involves meeting or exceeding customer expectations.

Quality applies to products, services, people, processes, and environments.
Quality is an ever-changing state (i.e., what is considered quality today may not be good
enough to be considered quality tomorrow).”
Read ‘Your Customer Service Is Your Branding: The Ritz Carlton Case Study’ (Source:
Solomon, M. (2015). Your Customer Service Is Your Branding: The Ritz Carlton Case Study.
Forbes.com. https://www.forbes.com/sites/micahsolomon/2015/09/24/your-customer-service-
style-is-your-brand-the-ritz-carlton-case-study/) and consider how The Ritz Carlton Hotel
Company has to continually evolve to keep up with the ever-changing preferences of its
customers. Evaluate how the above common elements apply in the company’s effort to
deliver “authentic customer service”.
Evans and Lindsay (2019) defined quality based on six perspectives as appended below
whereas Garvin (1984) described the same as the five approaches [Customer Perspective is
not found in Garvin (1984)].

Transcendent (Judgemental) Perspective: Goodness of a product is referred to as the

transcendent, or judgemental, definition of quality. As such, quality is “absolute and
universally recognisable, a mark of uncompromising standards and high achievement”
(Evans and Lindsay, 2019, p. 6). Products bearing such an image of excellence include Rolex
watches and the Ritz Carlton hotels. There is no precise definition of quality here – “you just
know it when you see it” (p. 6).
Product Perspective: This perspective relates to some product attributes, like the number of
different features in a mobile phone, a car or even the thread count of a shirt. This assessment
suggests that the higher the number of product features, or attributes, the better the quality.
User Perspective: This perspective arose due to the different needs and wants of individuals.
Also known as “fitness for intended use”, this perspective examines how well the product
performs its intended function. Both a BMW iX all-electric Sport Utility Vehicle and a Honda
Shuttle compact wagon are fit for use but they both serve different groups of customers and
their respective needs.
Value Perspective: This perspective defines quality that is based on value, that is, how much
benefit can be gained in relation to the price paid. In other words, consumers will no longer
make a purchase that is based on price alone but to compare the quality of the total package
of goods and services offered with price. This package may include the physical product and
other features such as warranties and post-sales support.
Manufacturing Perspective: This perspective relates to “conformance to specifications” where
manufacturers, and service producers, are compelled to meet the established standards for
their goods and services. The targets and tolerances set by the designers of goods and services
become the specifications for manufacturers and service producers to adhere to. For example,
The Ritz-Carlton Hotel Company is well known for its customer-centric service standards
that resulted in the motto: “We Are Ladies and Gentlemen Serving Ladies and Gentlemen”
(The Ritz-Carlton Hotel Company, L.L.C., 2022).
Customer Perspective: This perspective relates to the simple definition of meeting or
exceeding customer expectations. In this perspective, it is important to distinguish between
external customers (the consumers or the ultimate purchasers and/or users of a product or
service) and internal customers (the employees) of an organisation. For external customers, it
is the ultimate goal of any business to meet the expectations of consumers. As for internal
customers who receive goods and services from suppliers within the organisation, it is the
responsibility of any employee to satisfy the needs of the internal customers.
Depending on the perspective and approach taken to define quality, your definition of quality
may be different from another person’s. Despite the potential conflicts that could arise from
the different definitions of quality, organisations should leverage these different perspectives
to produce high-quality products and services.

1.2 Assessing Product Quality

Garvin (1984) proposed a framework of eight quality dimensions to assess the basic elements
of product quality. These dimensions are explained in Table 1.1.

Table 1.1 Garvin’s Dimensions of Product Quality (Source: Garvin, 1984)

Dimension Description
Performance Refers to the primary operating characteristics of a product. For example, the
acceleration, handling and comfort of a car.
Features Attributes of a product that supplement the product’s basic functions. These as
the “bells and whistles” of products, for example, free drinks on a flight. Do note that the line
separating primary characteristics (performance) and secondary ones (features) is difficult to
draw in many cases.
Reliability Probability of a product malfunctioning within a specified period of time. For
example, failure rate per unit time or mean time between failures (MTBF).
Conformance Degree to which a product’s design and operating characteristics match pre-
established standards. This dimension is related to reliability such that it commonly uses
incidence of defects as a measure.
Durability Degree to which a product tolerates stress or trauma without failing and this
refers to a product’s life. For example, the amount of use one gets from a product before it
fails.
Serviceability Ease of repair for a product, which can also refer to the speed, courtesy and
competence of repair. For example, the time lapse before a service is restored, one’s dealings
with service personnel and so on.
Aesthetics How a product tastes, feels, sounds, looks and smells. This is one of the most
subjective dimensions and it is closely related to the user approach as described in the
preceding chapter.
Perceived Quality Reputation and other indirect measures of quality, and this is just as
subjective as aesthetics. For example, one may rely on indirect measures like brand image,
advertising, or brand names to evaluate products.
Some of these dimensions rely on product attributes that are measurable while others focus
on the preference of the user; some are objective and timeless while others follow market
trends. Regardless, these dimensions reflect the differences among the traditional approaches
(perspectives) to quality as discussed in the previous chapter.
These dimensions were proposed to facilitate strategic quality analysis through a multi-
dimensional approach so that companies can identify the quality niches to compete in. Garvin
(1984) went on to explain that a firm that chooses to compete on the basis of quality need not
pursue all dimensions at once. Instead, the firm may employ a segmentation strategy and
focus on a few dimensions that suit that chosen strategy. In fact, firms may not have other
choices if competitors have already established broad reputations for excellence. In these
cases, new entrants may only secure a defensible position by focusing on an untapped
dimension of quality.

1.3 Assessing Service Quality

Manufacturing firms produce tangible goods that can be seen, touched and directly measured.
This implies that manufacturers tend to focus and rely on tangible attributes in designing
products while considering the subjective preferences of their users, and, in these cases,
Garvin’s quality dimensions may be applied.

Parasuraman, Zeithaml and Berry (1985) explained that knowledge of the physical good’s
quality is insufficient to understand quality in service because the characteristics of services –
intangibility, heterogeneity and inseparability – must be considered. Defining quality in
service firms is different from that of manufacturers in the following aspects:

Services are intangible. This means that services are seen to be felt and experienced as they
are performed, rather than objects to be used. Services cannot be counted, measured,
inventoried, or carried in stock over long periods of time.
Services are heterogeneous. This means that services, especially those with high labour
content, are not exactly alike and the services performed vary.
Simultaneous production and consumption of service. This means that customers will receive
the service exactly at the same time as it is produced. Often, the customer is involved in the
service process and is present in the service system (e.g., a haircut at a salon). As such, the
customer’s input and involvement become critical to the quality of that service performance.
In 1988, Parasuraman, Zeithaml, and Berry (PZ&B) compiled a set of quality dimensions for
services, and it is illustrated in Table 1.2. The PZ&B’s dimensions are used by many service
firms to assess service quality.

Table 1.2 PZ&B’s Dimensions of Service Quality (Source: Parasuraman et. al., 1988)
Dimension Description
Tangibles Include the physical appearance of the service facility, the equipment, the
personnel, and the communication materials
Reliability Ability of the service provider to perform the promised service dependably
and accurately
Responsiveness Willingness of the service provider to be helpful and prompt in
providing service
Assurance Knowledge and courtesy of employees and their ability to inspire trust and
confidence
Empathy The provision of caring and individualised attention from the service
organisation
1.4 Quality and the Business Firm
Efforts to reduce defects and errors, as well as product control, have always been the focus of
many firms to improve quality. More progressive firms have instead turned to quality
initiatives and efforts as sources of competitive advantage. Evans and Lindsay (2019, p.28)
cited a study by the Strategic Planning Institute (1986), the PIMS Letter on Business Strategy,
no. 4, that showed the positive impact of product quality on corporate performance. The
PIMS’ study found the following:

Product quality is a good determinant of the profitability of a firm.

Firms that offer good quality products and services do have large market shares.
There is a significant and positive correlation between good quality products and service
offerings and higher return on investment for most firms.
Implementing quality improvement initiatives usually leads to an increased market share for
the firm.
Premium prices may be levied on high-quality products.
Figure 1.1 Quality and Profitability
(Adapted from Evans and Lindsay, 2019)

Quality of design and conformance drive profitability, as illustrated in Figure 1.1. From the
findings above, we can infer some potential benefits over the long term to a firm, its
employees and its customers:

Benefits to the company:

Better financial position due to improved operating efficiencies.
Well-designed products and services can lead to improved brand recognition and reputation,
resulting in greater market share.
Benefits to its employees:
Well-designed products and services eliminate the need for reworking and correcting service
errors.
Employees can turn their attention to designing and making better products and services with
improved communication and teamwork across functions and departments.
Increased job satisfaction through employee empowerment.
Benefits to its customers:
Customers have a business partner they can rely on for the required products and services.
Customers can be assured of getting quality products and services repeatedly at great value.
1.5 Costs of Quality
Attaining or lacking the desired level of quality in a product or service incurs costs. These
costs are referred to as costs of quality. These may include the costs of preventing quality
problems, measuring quality levels, controlling and/or inspecting quality levels, or failing to
accomplish the desired quality levels.

Evans and Lindsay (2019) described four broad categories of costs of quality:

Prevention Costs are costs associated with preventing defects and imperfections from
occurring and reaching the customer. Prevention costs include costs such as training, quality
planning, process engineering and other costs associated with assuring quality beforehand.
Appraisal Costs are costs associated with the direct costs of measuring and analysing quality
in products and services. In other words, these are costs incurred to determine whether a
product or service is conforming to specifications or customer needs. These can include a
variety of activities such as lab testing, inspection, test equipment and materials, and costs
associated with assessments for quality awards and certifications.
Internal failure costs are associated with online failures; these costs are incurred when
products or services do not conform to specifications or customer needs. This non-
conformance is detected prior to being shipped or delivered to customers. Examples of
internal failure costs are costs associated with scrap, rework, reinspection, retesting, and costs
associated with unplanned process downtime and equipment repairs. These costs disappear if
no defects exist.
External failure costs are incurred because products or services fail to conform to
specifications or customer needs after being delivered to customers. Examples of external
failure costs are costs associated with warranty claims and product recalls, product liabilities
(including legal actions and settlements), customer dissatisfaction and loss of market share.
Companies should invest heavily in prevention and appraisal costs in order to minimize both
failure costs. In fact, an increase in prevention efforts (and prevention costs) can result in
savings in all other quality cost categories. The earlier that defects are found in the product
lifecycle, the less costly they are to correct. Figure 1.2 illustrates that detecting and correcting
defects during the product design phase is considerably less expensive than when found at the
customer site.

Figure 1.2 Cost of Defects

(Adapted from Quality Magazine, 2017)

Read
Webpage: ”Cost of Quality (COQ)” from American Society for Quality (2023a). ASQ.
https://asq.org/quality-resources/cost-of-quality

Review Questions

What are Garvin’s dimensions of product quality?

Suggested Answer
Dimension Description
Performance Refers to the primary operating characteristics of a product
Features Attributes of a product that supplement the product’s basic functioning
Reliability Probability of a product malfunctioning within a specified period of time
Conformance Degree to which a product’s design and operating characteristics match pre-
established standards
Durability Degree to which a product tolerates stress or trauma without failing and this
refers to a product's life
Serviceability Ease of repair for a product
Aesthetics How a product tastes, feels, sounds, looks and smells
Perceived Quality Reputation and other indirect measures of quality
What are PZ&B’s dimensions of service quality?
Suggested Answer
Dimension Description
Performance Refers to the primary operating characteristics of a product
Features Attributes of a product that supplement the product’s basic functioning
Reliability Probability of a product malfunctioning within a specified period of time
Conformance Degree to which a product’s design and operating characteristics match pre-
established standards
Durability Degree to which a product tolerates stress or trauma without failing and this
refers to a product's life
Serviceability Ease of repair for a product
Aesthetics How a product tastes, feels, sounds, looks and smells
Perceived Quality Reputation and other indirect measures of quality

Activity 1.1
Select a local service provider and assess the service quality level of that service provider
using the PZ&B’s dimensions of service quality.

Class Activity 1.1

Read the article via the SUSS Library – Newslink e-Resource:

Article: Customer satisfaction at all-time high in Singapore (Source: Aggarwal, N. (2017,

April 12). Customer satisfaction at all-time high in Singapore. The Business Times, 13).

The article explains Singapore Management University’s annual Customer Service Index hit
a record-high score and this can be attributed to a few reasons. Read the article and answer
the following questions:

Which of PZ&B’s Service Quality Dimensions have service providers scored well in?
Which of PZ&B’s Service Quality Dimensions have experts identified as areas for
improvement? Why?
Lesson Recording
Quality Concepts
https://d2jifwt31jjehd.cloudfront.net/BUS363/LessonRecording/
BUS363_SU1CH1_V2_0_0/presentation_html5.html