TOTAL QUALITY MANAGEMENT

DOM 308
INTRODUCTION
Quality- Quality is the degree to which an object or entity (e.g., process, product, or
service) satisfies a specified set of attributes or requirements. The quality of something can be
determined by comparing a set of inherent characteristics with a set of requirements.

Quality refers to how good something is compared to other similar things. In other words, its
degree of excellence

Total Quality Management is a management approach that focuses on delivering products and
services with the highest quality to maximize customer satisfaction and meet regulatory
standards. Total quality management is an organization-wide effort for continuous improvement.
That improvement can be defined as an employee’s ability to provide on-demand products and
services that are of value to their customers, even as their needs change.

Quality is the degree of excellence at an acceptable price and control of variability at An

acceptable cost “
Quality is a measure of how closely a good or service conforms to specified standards.

What Is Total Quality Management (TQM)?

Total quality management (TQM) is the continual process of detecting and reducing
or eliminating errors in manufacturing. It streamlines supply chain management,
improves the customer experience, and ensures that employees are up to speed with
training. Total quality management aims to hold all parties involved in the production
process accountable for the overall quality of the final product or service. It seeks to
provide long-term success.
KEY TAKEAWAYS

 Total quality management (TQM) is an ongoing process of detecting and

reducing or eliminating errors.
 Total quality management is used to streamline supply chain management,
improve customer service, and ensure that employees are properly trained.
  The focus is to improve the quality of an organization's outputs, including
goods and services, through the continual improvement of internal practices.

 Total quality management aims to hold all parties involved in the production
process accountable for the overall quality of the final product or service.
 There are often eight guiding principles to TQM that range from focusing on
customers, continually improving, and adhering to processes.
Understanding Total Quality Management (TQM)
Total quality management is a structured approach to overall organizational
management. The focus of the process is to improve the quality of an organization's
outputs, including goods and services, through the continual improvement of internal
practices. The standards set as part of the TQM approach can reflect both internal
priorities and any industry standards currently in place.

Industry standards can be defined at multiple levels and may include adherence to
various laws and regulations governing the operation of a particular business.
Industry standards can also include the production of items to an understood norm,
even if the norm is not backed by official regulations. Acceptance sampling might be
used to check the progress toward the TQM goal.

History of Total Quality Management (TQM)

The history of total quality management (TQM) began initially as a term coined by the Naval Air
Systems Command to describe its Japanese-style management approach to quality improvement.
An umbrella methodology for continually improving the quality of all processes, it draws on a
knowledge of the principles and practices of:

 The behavioral sciences

 The analysis of quantitative and nonquantitative data
 Economics theories
 Process analysis

History of Total Quality Management (TQM)

1920s  Some of the first seeds of quality management were planted as the principles of
scientific management swept through U.S. industry.
 Businesses clearly separated the processes of planning and carrying out the plan,
and union opposition arose as workers were deprived of a voice in the
conditions and functions of their work.
 The Hawthorne experiments in the late 1920s showed how worker productivity
could be impacted by participation.
 1930s  Walter Shewhart developed the methods for statistical analysis and control of
quality.

1950s  W. Edwards Deming taught methods for statistical analysis and control of
quality to Japanese engineers and executives. This can be considered the origin
of TQM.
 Joseph M. Juran taught the concepts of controlling quality and managerial
breakthrough.
 Armand V. Feigenbaum’s book Total Quality Control, a forerunner for the
present understanding of TQM, was published.
 Philip B. Crosby’s promotion of zero defects paved the way for quality
improvement in many companies.

1968  The Japanese named their approach to total quality "companywide quality
control." It is around this time that the term quality management systems arises.
 Kaoru Ishikawa’s synthesis of the philosophy contributed to Japan’s ascendancy
as a quality leader.

Today  TQM is the name for the philosophy of a broad and systemic approach to
managing organizational quality.
 Quality standards such as the ISO 9000 series and quality award programs such
as the Deming Prize and the Malcolm Baldrige National Quality Award specify
principles and processes that comprise TQM.
 TQM as a term to describe an organization's quality policy and procedure has
fallen out of favor as international standards for quality management have been
developed. Please see our series of pages on quality management systems for
more information.

CONCEPT FROM QUALITY GURUS

An extensive review of literature was carried out to identify the concept of TQM from quality
gurus such as Deming (1986), Juran (Juran and Gryna, 1993), Crosby (1979), Feigenbaum
(1991), and Ishikawa (1985). Their propositions are the foundation for understanding the concept
of TQM. The following subsections present the main principles and practices of TQM proposed
by these quality gurus.
DEMING’S APPROACH TO TQM
Deming’s Approach to TQM The theoretical essence of the Deming approach to TQM concerns
the creation of an organizational system that fosters cooperation and learning for facilitating the
implementation of process management practices, which, in turn, leads to continuous
improvement of processes, products, and services as well as to employee fulfillment, both of
which are critical to customer satisfaction, and ultimately, to firm survival (Anderson et al.,
1994a). Deming (1986) stressed the responsibilities of top management to take the lead in
changing processes and systems.
Leadership plays in ensuring the success of quality management, because it is the top
management’s responsibility to create and communicate a vision to move the firm toward
continuous improvement. Top management is responsible for most quality problems; it should
give employees clear standards for what is considered acceptable work, and provide the methods
to achieve it. These methods include an appropriate working environment and climate for work-
free of faultfinding, blame or fear.
Deming (1986) also emphasized the importance of identification and measurement of customer
requirements, creation of supplier partnership, use of functional teams to identify and solve
quality problems, enhancement of employee skills, participation of employees, and pursuit of
continuous improvement. Anderson et al. (1994a) developed a theory of quality management
underlying the Deming management method. They proposed that: The effectiveness of the
Deming management method arises from leadership efforts toward the simultaneous creation of
a cooperative and learning organization to facilitate the implementation of process-management
practices, which, when implemented, support customer satisfaction and organizational survival
through sustained employee fulfillment and continuous improvement of processes, products, and
services.
The means to improve quality lie in the ability to control and manage systems and processes
properly, and in the role of management responsibilities in achieving this. Deming (1986)
advocated methodological practices, including the use of specific tools and statistical methods in
the design, management, and improvement of process, which aim to reduce the inevitable
variation that occurs from “common causes” and “special causes” in production. “Common
causes” of variations are systemic and are shared by many operators, machines, or products.
They include poor product design, non-conforming incoming materials, and poor working
conditions. These are the responsibilities of management. “Special causes” relate to the lack of
knowledge or skill, or poor performance. These are the responsibilities of employees. Deming
proposed 14 points as the principles of TQM (Deming, 1986), which are listed below:
(1) Create constancy of purpose toward improvement of product and service, with the aim to
become competitive and to stay in business, and to provide jobs.
(2) Adopt the new philosophy. We are in a new economic age. Western management must
awaken to the challenge, must learn their responsibilities, and take on leadership for change.
(3) Cease dependence on mass inspection to quality. Eliminate the need for inspection on a mass
basis by building quality into the product in the first place.
(4) End the practice of awarding business on the basis of price tag. Instead, minimize total cost.
Move toward a single supplier for any one item, on a long-term relationship of loyalty and trust.
(5) Improve constantly and forever the system of production and service, to improve quality and
productivity, and thus constantly decrease costs.
(6) Institute training on the job.
(7) Institute leadership. The aim of supervision should be to help people and machines and
gadgets to do a better job. Supervision of management is in need of overhaul, as well as
supervision of production workers.
(8) Drive out fear, so that people may work effectively for the company.
(9) Break down barriers between departments. People in research, design, sales, and production
must work as a team, to foresee problems of production and in use that may be encountered with
the product or service.
(10) Eliminate slogans, exhortations, and targets for the workforce asking for zero defects and
new levels of productivity. Such exhortations only create adversarial relationships, as the bulk of
the causes of low quality and low productivity belong to the system and thus lie beyond the
power of the workforce.
(11) (a) Eliminate work standards (quotas) on the factory floor. Substitute leadership. (b)
Eliminate management by objective. Eliminate management by numbers, numerical goals.
Substitute leadership. (12) (a) Remove barriers that rob the hourly worker of his right to pride of
workmanship. The responsibility of supervisors must be changed from sheer numbers to quality.
(b) Remove barriers that rob people in management and in engineering of their right to pride of
workmanship. This means, inter alia, abolishment of the annual or merit rating and of
management by objective.
(13) Institute a vigorous program of education and self-improvement.
(14) Put everybody in the company to work to accomplish the transformation. The
transformation is everybody’s job.

JURAN’S APPROACH TO TQM

TQM is the system of activities directed at achieving delighted customers, empowered
employees, higher revenues, and lower costs (Juran and Gryna, 1993). Juran believed that main
quality problems are due to management rather than workers. The attainment of quality requires
activities in all functions of a firm. Firm-wide assessment of quality, supplier quality
management, using statistical methods, quality information system, and competitive
benchmarking are essential to quality improvement. Juran’s approach is emphasis on team (QC
circles and self-managing teams) and project work, which can promote quality improvement,
improve communication between management and employees coordination, and improve
coordination between employees. He also emphasized the importance of top management
commitment and empowerment, participation, recognition and rewards.
According to Juran, it is very important to understand customer needs. This requirement applies
to all involved in marketing, design, manufacture, and services. Identifying customer needs
requires more vigorous analysis and understanding to ensure the product meets customers’ needs
and is fit for its intended use, not just meeting product specifications. Thus, market research is
essential for identifying customers’ needs. In order to ensure design quality, he proposed the use
of techniques including quality function deployment, experimental design, reliability engineering
and concurrent engineering.

Juran considered quality management as three basic processes (Juran Trilogy): Quality control,
quality improvement, and quality planning. In his view, the approach to managing for quality
consists of: The sporadic problem is detected and acted upon by the process of quality control;
The chronic problem requires a different process, namely, quality improvement; Such chronic
problems are traceable to an inadequate quality planning process. Juran defined a universal
sequence of activities for the three quality processes, which is listed in Table 2.1. Juran defined
four broad categories of quality costs, which can be used to evaluate the firm’s costs related to
quality. Such information is valuable to quality improvement. The four quality costs are listed as
follows:

- Internal failure costs (scrap, rework, failure analysis, etc.), associated with defects found prior
to transfer of the product to the customer.

- External failure costs (warranty charges, complaint adjustment, returned material, allowances,
etc.), associated with defects found after product is shipped to the customer.

- Appraisal costs (incoming, in-process, and final inspection and testing, product quality audits,
maintaining accuracy of testing equipment, etc.), incurred in determining the degree of
conformance to quality requirements.

- Prevention costs (quality planning, new product review, quality audits, supplier quality
evaluation, training, etc.), incurred in keeping failure and appraisal costs to a minimum

CROSBY’S APPROACH TO TQM

Crosby (1979) identified a number of important principles and practices for a successful quality
improvement program, which include, for example, management participation, management
responsibility for quality, employee recognition, education, reduction of the cost of quality
(prevention costs, appraisal costs, and failure costs), emphasis on prevention rather than after-
the-event inspection, doing things right the first time, and zero defects. Crosby claimed that
mistakes are caused by two reasons: Lack of knowledge and lack of attention. Education and
training can eliminate the first cause and a personal commitment to excellence (zero defects) and
attention to detail will cure the second. Crosby also stressed the importance of management style
to successful quality improvement. The key to quality improvement is to change the thinking of
top managers-to get them not to accept mistakes and defects, as this would in turn reduce work
expectations and standards in their jobs. Understanding, commitment, and communication are all
essential. Crosby presented the quality management maturity grid, which can be used by firms to
evaluate their quality management maturity. The five stages are: Uncertainty, awakening,
enlightenment, wisdom and certainty. These stages can be used to assess progress in a number of
measurement categories such as management understanding and attitude, quality organization
status, problem handling, cost of quality as percentage of sales, and summation of firm quality
posture. The quality management maturity grid and cost of quality measures are the main tools
for managers to evaluate their quality status. Crosby offered a 14-step program that can guide
firms in pursuing quality improvement. These steps are listed as follows:

(1) Management commitment: To make it clear where management stands on quality.

(2) Quality improvement team: To run the quality improvement program.

(3) Quality measurement: To provide a display of current and potential nonconformance

problems in a manner that permits objective evaluation and corrective action.

(4) Cost of quality: To define the ingredients of the cost of quality, and explain its use as a
management tool. 13

(5) Quality awareness: To provide a method of raising the personal concern felt by all personnel
in the company toward the conformance of the product or service and the quality reputation of
the company.

(6) Corrective action: To provide a systematic method of resolving forever the problems that are
identical through previous action steps.

(7) Zero defects planning: To investigate the various activities that must be conducted in
preparation for formally launching the Zero Defects program.

(8) Supervisor training: To define the type of training that supervisors need in order to actively
carry out their part of the quality improvement program.

(9) Zero defects day: To create an event that will make all employees realize, through a personal
experience, that there has been a change.

(10) Goal setting: To turn pledges and commitment into actions by encouraging individuals to
establish improvement goals for themselves and their groups.

(11) Error causal removal: To give the individual employee a method of communicating to
management the situation that makes it difficult for the employee to meet the pledge to improve.
(12) Recognition: To appreciate those who participate.

(13) Quality councils: To bring together professional quality people for planned communication
on a regular basis.

(14) Do it over again: To emphasize that the quality improvement program never ends.
FEIGENBAUM’S APPROACH TO TQM

Feigenbaum (1991) defined TQM5 as: An effective system for integrating the
qualitydevelopment, quality-maintenance, and quality-improvement efforts of the various groups
in a firm so as to enable marketing, engineering, production, and service at the most economical
levels which allow for full customer satisfaction. He claimed that effective quality management
consists of four main stages, described as follows:

- Setting quality standards;

- Appraising conformance to these standards;

- Acting when standards are not met;

- Planning for improvement in these standards.

The quality chain, he argued, starts with the identification of all customers’ requirements and
ends only when the product or service is delivered to the customer, who remains satisfied. Thus,
all functional activities, such as marketing, design, purchasing, manufacturing, inspection,
shipping, installation and service, etc., are involved in and influence the attainment of quality.
Identifying customers’ requirements is a fundamental initial point for 5 Feigenbaum used the
term TQC (total quality control) instead of TQM in his book. He claimed that it permits what
might be called total quality management to cover the full scope of the product and service “life
cycle” from product conception through production and customer service. According to ISO
8402 – Quality management and quality assurance – vocabulary, TQM is sometimes called “total
quality”, “company-wide quality control”, “total quality control”, etc achieving quality. He
claimed that effective TQM requires a high degree of effective functional integration among
people, machines, and information, stressing a system approach to quality.

A clearly defined total quality system is a powerful foundation for TQM. Total quality system is
defined as follows: The agreed firm-wide operating work structure, documented in effective,
integrated technical and managerial procedures, for guiding the coordinated actions of the
people, the machines, and the information of the firm in the best and most practical ways to
assure customer quality satisfaction and economical costs of quality.

Feigenbaum emphasized that efforts should be made toward the prevention of poor quality
rather than detecting it after the event. He argued that quality is an integral part of the day-today
work of the line, staff, and operatives of a firm. There are two factors affecting product quality:
The technological-that is, machines, materials, and processes; and the human-that is, operators,
foremen, and other firm personnel. Of these two factors, the human is of greater importance by
far. Feigenbaum considered top management commitment, employee participation, supplier
quality management, information system, evaluation, communication, use of quality costs, use of
statistical technology to be an essential component of TQM. He argued that employees should be
rewarded for their quality improvement suggestions, quality is everybody’s job. He stated that
effective employee training and education should focus on the following three main aspects:
Quality attitudes, quality knowledge, and quality skills.

ISHIKAWA’S APPROACH TO TQM

Ishikawa6 (1985) argued that quality management extends beyond the product and encompasses
after-sales service, the quality of management, the quality of individuals and the firm itself. He
claimed that the success of a firm is highly dependent on treating quality improvement as a
never-ending quest. A commitment to continuous improvement can ensure that people will never
stop learning. He advocated employee participation as the key to the successful implementation
of TQM. Quality circles, he believed, are an important vehicle to achieve this. Like all other
gurus he emphasized the importance of education, stating that quality begins and ends with it. He
has been associated with the development and advocacy of universal education in the seven QC
tools (Ishikawa, 1985). These tools are listed below:

- Pareto chart.
- Cause and effect diagram (Ishikawa diagram).
- Stratification chart.
- Scatter diagram.
- Check sheet.
- Histogram.
- Control chart
6 Ishikawa used the term TQC (total quality control) instead of TQM in his book. According to
ISO 8402 – Quality management and quality assurance – vocabulary, TQM is sometimes called
“total quality”, “company-wide quality control”, “total quality control”, etc.

Ishikawa (1985) suggested that the assessment of customer requirements serves as a tool to foster
cross-functional cooperation; selecting suppliers should be on the basis of quality rather than
solely on price; cross-functional teams are effective ways for identifying and solving quality
problems. Ishikawa’s concept of TQM contains the following six fundamental principles:

- Quality first-not short-term profits first.

- Customer orientation-not producer orientation;
- The next step is your customer
-breaking down the barrier of sectionalism.
- Using facts and data to make presentations-utilization of statistical methods.
- Respect for humanity as a management philosophy, full participatory management.
- Cross-functional management.

Results From Quality Gurus

After the approaches to TQM of the five quality gurus have been reviewed, it has become
evident that each has his own distinctive approach. Nevertheless, the principles and practices of
TQM proposed by these quality gurus do provide the author with a better understanding of the
concept of TQM. Their insights offer a solid foundation for conducting this study. Although their
approaches to TQM are not totally the same, they do share some common points which are
summarized as follows:

(1) It is management’s responsibility to provide commitment, leadership, empowerment,

encouragement, and the appropriate support to technical and human processes. It is top
management’s responsibility to determine the environment and framework of operations within a
firm. It is imperative that management foster the participation of the employees in quality
improvement and develops a quality culture by changing perception and attitudes toward quality.
(2) The strategy, policy, and firm-wide evaluation activities are emphasized.

(3) The importance of employee education and training is emphasized in changing employees’
beliefs, behavior, and attitudes, enhancing employees’ abilities in carrying out their duties.

(4) Employees should be recognized and rewarded for their quality improvement efforts.

(5) It is very important to control the processes and improve quality system and product design.
The emphasis is on prevention of product defects, not inspection after the event.

(6) Quality is a systematic firm-wide activity from suppliers to customers. All functional
activities, such as marketing, design, engineering, purchasing, manufacturing, inspection,
shipping, accounting, installation and service, should be involved in quality improvement efforts

MEASURES OF QUALITY

Appearance: The look of the product is an important measure for fashion apparel.
Reliable: Machines will be of frequent use; therefore, reliability is required.
Durable: This is the long-lasting aspect of the product.
Functions: Smartphones are becoming more appealing with added functions and apps.
Maintenance requirements: A vehicle that needs fewer repairs and servicing can be viewed to
be of good quality.
Brand image: Customers assess the quality of a product with the brand image of a company.
Cadbury is considered a high-quality brand, although it has diversified away from its original
products also.
Reputation: A company such as Apple, Inc. has developed a reputation for quality.

PRIMARY PRINCIPLES OF TOTAL QUALITY MANAGEMENT

TQM is considered a customer-focused process that focuses on consistently
improving business operations management. It strives to ensure that all associated
employees work toward the common goals of improving product or service
quality, as well as improving the procedures that are in place for production. There
are several guiding principles that define TQM.

Focus on Customers

Under TQM, your customers define whether your products are high quality.
Customer input is highly valued because it allows a company to better understand
the needs and requirements in the manufacturing process. Customer surveys may
reveal insufficient durability of goods. This input is then fed back into TQM
systems to implement better raw material sourcing, manufacturing processes,
and quality control procedures.

Commitment by Employees

Employees must buy into the processes and system if TQM is going to be
successful. This includes clearly communicating across departments and leaders
what goals, expectations, needs, and constraints are in place. A company adopting
TQM principles must be willing to train employees and give them sufficient
resources to complete tasks successfully and on time. TQM also strives to
reduce attrition and maintain knowledgeable workers.

Improve Continuously

A company should gradually evolve and strive for incremental, small improvements
as it learns more about its customers, processes, and competition. This concept of
continuous improvement helps a company adapt to changing market expectations. It
allows for greater adaptability to different products, markets, customers, or regions.
Continuous improvement also drives and widens the competitive advantage that a
company has built over related companies.

Adherence to Processes

TQM's systematic approach relies heavily on process flowcharts, TQM diagrams,

visual action plans, and documented workflows. Every member engaged in the
process must be aware and educated on their part of the process to ensure proper
steps are taken at the right time of production. These processes are then continually
analyzed to better understand deficiencies in the process.

Strategic and Systematic Approach

A company's processes and procedures should be a direct reflection of the
organization's vision, mission, and long-term plan. TQM calls for a system approach
to decision making that requires that a company dedicate itself to integrating quality
as its core component and making the appropriate financial investments to make that
happen.

Data Utilization

The systematic approach of TQM only works if feedback and input is given to
evaluate how the process flow is moving. Management must continually rely on
production, turnover, efficiency, and employee metrics to correlate the anticipated
outcomes with the actual results. TQM relies heavily on documentation and planning,
and only by utilizing and analyzing data can management understand if those plans
are being met.

Integrate Systems

One way to utilize data is to integrate systems. TQM strategies believe systems
should talk to each other, conveying useful information across departments and
making smart decisions. When goods or inventory are used in one area, another
department should have immediate access to that ERP information. TQM strives to
allow everyone to be on the same page at the same time by linking data sources and
sharing information across systems.

Communication

Data may transfer between departments freely, but there is a human element to
coordinating processes and making sure an entire production line is operating
efficiently. Effective communication plays a large part in TQM to motivate
employees, educate members along a process, and avoid process errors whether it is
normal day-to-day operations or large organizational changes.

Successful TQM requires a company-wide buy-in of every principle. The benefits of

TQM quickly diminish if a company does not receive complete buy-in.

IMPORTANCE OF QUALITY MANAGEMENT

Meeting the expectations of the customers
Irrespective of the industry, customers will not choose a particular product merely based on the
price, nonetheless often on quality. According to some studies, customers are willing to pay a
higher price for a product or service if they consider it as a well-made product that surpasses the
quality standards.
Gaining competitive advantage

Companies want to attain competitiveness with differentiation. This happens when there are
distinctive qualities in a product that cannot be imitated by rivals. A distinctive product can be
patented in order to avoid other companies from replicating it for almost 20 years. This would
mean that a company can sustain its competitive advantage for a long time.

Quality is crucial for the satisfaction of customers.

If an organization fails to meet the expectations of its customers, then it will look for
replacements. Quality is essential to satisfy customers in order to retain their loyalty so that they
will be willing to buy in the future as well. Quality products make a significant impact on
revenues in the long run. Quality is what differentiates a company in a crammed market.

Quality develops reputation.

Quality signals an organization’s reputation. Nowadays, there is an increasing significance of

social media which means that the customers can effortlessly share both positive and negative
opinions on the quality of a product/service on different platforms. Therefore, a sound reputation
for quality could be an essential factor that can differentiate an organization in a market that is
highly competitive.

Poor quality products/services can lead to negative publicity and can harm the reputation. If the
organization is constantly delivering what it has promised, then the customers will give positive
and constructive views on social media. This will not only create awareness for the brand but
will also make a wanted effect and they wouldn’t want to be missed out. The user on social
networking sites who view an organization’s strong reputation will desire to be part of the
product/service being offered that will in turn increase sales.

Influence on sales volume

If a product matches the requirements of the customers, then the demand for that particular
product will increase, hence allowing the company to boost its profit levels. As people become
wealthier, their desire for good quality products also increases as they are not constricted by their
income.

Quality helps in managing costs effectively.

Poor quality products escalate costs. If an organization does not have an efficient quality control
system, they may have to bear costs to assess peculiar products in order to evaluate the main
causes. They may have to get rid of faulty products and incur extra production costs for their
replacement.

Greater productivity levels

When an organization understands and follows the significance of quality in every aspect of its
operations then there is an increase in the productivity of its employees. As they realize and
comprehend that they are working on a product that is exceptional and high on quality.

Boosted brand value.

Every brand wants a greater market share and a boosted brand value. It is through following and
comprehending the significance of quality that will support an organization make its brand value
rise in comparison to its rivals in the industry.

Reduced risk

The other facet that helps an organization sustain its brand value is to diminish risks. Risks
simply befall business operations when an organization do not follow parameters of quality

Growth in revenues and profits

In current vigorous markets, there is ever-growing competition, it becomes challenging for an

organization to make anticipated revenues to meet their short and long-run goals. An
organization that follows quality management will have a greater level of satisfied customers,
higher brand value, and market shares.

Examples of Quality management?

Coca-Cola guarantees the finest quality product by applying widely approved and authentic
manufacturing processes and systems. It measures the quality of its product as well as packaging
to make sure that the products meet the requirements of the company and fulfil the consumers'
expectations. Reliability and regularity are the two main components of the quality of products.
These components are crucial in order to meet the organization’s standards and regulatory
prerequisites globally. The fact that Coca-Cola is a global product necessitates higher standards
and processes to guarantee reliable products as well as quality from the initial production to the
delivery of the product.

 The finalization of the manufacturing plant site by Coca-Cola is only after the source
water has been tested and verified for the requirement.
 The process of purifying sugar, carbon-dioxide preparation, sterilization of bottles goes
through quality control that ensures that the product meets the global standards and meets
customers’ expectations.
LEVELS OF QUALITY
1. Quality Management
Quality management is the level at which the assembly and management of all activities aimed at
producing quality by companies, industries, and organizations are put into place. This is the level
at which employees create objectives and policies that are to be followed to ensure that a product
or service is being produced correctly, efficiently, and in compliance with all rules and
regulations governing it. For example, a medical laboratory needs to have its services managed
in such a way that is convenient yet extremely safe for each patient that utilizes the lab.

2. Quality Assurance
At the level of quality assurance, a quality insurance inspector or associate will work to ensure that the
assembly of all planned products or services is adequately in place and that the product or service
being produced meets all quality requirements. It is essential not only for companies to produce high-
quality products but also to keep the public safe from defective ones. At this level of quality, a quality
assurance officer works to conduct quality management for all products and services.

3. Quality Control
Quality control is a significant part of the quality assurance process. It is defined as the operational
techniques and activities utilized to satisfy all quality requirements. A quality control inspector,
analyst, or associate will conduct quality assessment protocols on products or services to ensure that
they are effective and not defective or unsafe. They are responsible for evaluating the product or
services themselves. Quality control's main objective is to prevent errors from occurring. Since
mistakes can still be made, the quality control system has to have checks and balances within it to
detect any defects or mistakes that have been made that can be unsafe for the public or ruin the
reputation of the company or product.

WHAT IS THE IMPORTANCE OF QUALITY CONTROL, QUALITY ASSURANCE AND

QUALITY MANAGEMENT?

Quality control is necessary to develop a flourishing business that offers products

that meet or surpass the expectations of customers. It also builds the foundation of
an efficient organization that lowers waste and functions at a higher level of
productivity.
Quality assurance is a continuous effort to improve quality practices. It is a
process-based practice and quality control on the other hand is a product-based
process. Quality assurance is important because it ensures that the production
process of a product aligns with the quality requirements and standards. The
significance of quality assurance is that it ensures that the finished product fulfils
the quality requirements.

Quality management is important because it provides a framework for constant

quality improvement. This acts as an assurance that companies never settle on
delivering anything less than the best products and services possible.

IMPORTANCE OF QUALITY

Quality management is important for several reasons:

 it helps to increase customer satisfaction, which can lead to increased loyalty and repeat
business
 It can help reduce costs associated with rework, warranty claims, and customer
complaints, which can have a significant impact on profitability.
 It provides a framework for continuous improvement
 It can help ensure that products or services meet legal and regulatory

Which key factors customers keep in mind when buying a product based on the following
factors:
Price and Quality
Why is quality important for an organization?
Among the many factors, some of them include: to meet customer expectations, boost brand
value and reputation, meet industry standards, reduce risk and cost.
How does quality improve the reputation and value of a business?

With the increasing use of social media, customers can share their positive and negative
feedback of a product/service. Therefore, a sound reputation for quality could be an essential
factor that can differentiate an organization in a market that is highly competitive.
How does quality increase productivity?

Employees understand the importance of quality and they realize and comprehend that they are
working on a product that is exceptional and high on quality.
Are customers willing to pay a higher price for a superior quality product?

Yes
Write an example of quality management?

Coca-Cola ensures to implement vigorous globally accepted methods and processes. The quality
assurance and control at Coca-Cola starts from the very beginning as the manufacturing plant site
is approved and the source water and carbon dioxide are used only when it meets the company’s
standards. It makes sure that the bottles are recycled and sterilized before usage. It tries to make
a product that will meet the customer expectations and eventually result in loyal customers
leading to increased revenues.

DIMENSIONS OF QUALITY
Garvin proposes eight critical dimensions or categories of quality that can serve as a framework
for strategic analysis: Performance, features, reliability, conformance, durability, serviceability,
aesthetics, and perceived quality.

1. Performance
Performance refers to a product's primary operating characteristics. For an automobile,
performance would include traits like acceleration, handling, cruising speed, and comfort.
Because this dimension of quality involves measurable attributes, brands can usually be ranked
objectively on individual aspects of performance. Overall performance rankings, however, are
more difficult to develop, especially when they involve benefits that not every customer needs.

2. Features
Features are usually the secondary aspects of performance, the "bells and whistles" of products
and services, those characteristics that supplement their basic functioning. The line separating
primary performance characteristics from secondary features is often difficult to draw. What is
crucial is that features involve objective and measurable attributes; objective individual needs,
not prejudices, affect their translation into quality differences.

3. Reliability
This dimension reflects the probability of a product malfunctioning or failing within a specified
time period. Among the most common measures of reliability are the mean time to first failure,
the mean time between failures, and the failure rate per unit time. Because these measures
require a product to be in use for a specified period, they are more relevant to durable goods than
to products or services that are consumed instantly.

4. Conformance
Conformance is the degree to which a product's design and operating characteristics meet
established standards. The two most common measures of failure in conformance are defect rates
in the factory and, once a product is in the hands of the customer, the incidence of service calls.
These measures neglect other deviations from standard, like misspelled labels or shoddy
construction, that do not lead to service or repair.

5. Durability
A measure of product life and durability has both economic and technical dimensions.
Technically, durability can be defined as the amount of use one gets from a product before it
deteriorates. Alternatively, it may be defined as the amount of use one gets from a product before
it breaks down and replacement is preferable to continued repair.
6. Serviceability
Serviceability is speed, courtesy, competence, and ease of repair. Consumers are concerned not
only about a product breaking down but also about the time before service is restored, the
timeliness with which service appointments are kept, the nature of dealings with service
personnel, and the frequency with which service calls or repairs fail to correct outstanding
problems. In those cases where problems are not immediately resolved and complaints are filed,
a company's complaints handling procedures are also likely to affect customers' ultimate
evaluation of product and service quality.

7. Aesthetics
Aesthetics is a subjective dimension of quality. How a product looks, feels, sounds, tastes, or
smells is a matter of personal judgement and a reflection of individual preference. On this
dimension of quality, it may be difficult to please everyone.

8. Perceived Quality
Consumers do not always have complete information about a product's or service's attributes;
indirect measures may be their only basis for comparing brands. A product's durability for
example can seldom be observed directly; it must usually be inferred from various tangible and
intangible aspects of the product. In such circumstances, images, advertising, and brand names -
inferences about quality rather than the reality itself - can be critical.

Elements of Service Quality

When it comes to providing a great service, the quality of the service is key. It’s the measure of
how well a product or service meets or exceeds customer expectations. It’s important to
understand that there are a few determinants of service quality that can make or break a
customer’s experience.

These determinants of service quality are important when it comes to providing a great customer
experience. By understanding and following these determinants, service providers can ensure
that their customers are satisfied and loyal.

Providing excellent customer service is essential for any business. It can lead to
increased customer loyalty and satisfaction, as well as improved business performance. To
ensure customers receive the best possible service, businesses must be aware of the core
elements of service quality. These include reliability, responsiveness, assurance, empathy,
tangibles, and understanding customer expectations.

Reliability is all about providing consistent, high-quality services that meet or exceed customer
expectations. This means delivering services on time, and consistently meeting the standards set
out in contracts and agreements. It also involves being honest and transparent about any changes
or issues that could affect the service.
Responsiveness is how quickly a service provider can react to customer needs and requests. This
involves having systems in place to ensure customers can communicate with the business
quickly and easily and having staff available to respond to customer queries in a timely manner.

Assurance is about providing customers with a sense of trust and security that their needs will be
addressed in a satisfactory manner. This includes being available to listen to customer concerns
and feedback, and providing clear information about policies, procedures and regulations.

Empathy is the ability of a service provider to recognize and understand a customer's needs and
feelings. This involves actively listening to customers and responding to their requests in a
respectful and understanding way.

Tangibles refer to the physical elements of a service, such as the appearance of staff and
facilities. This includes the level of cleanliness of premises and the professionalism of staff.

Finally, understanding customer expectations involves anticipating customer needs and

preferences, and delivering services that meet or exceed these expectations. This means staying
informed about customer trends and preferences, and tailoring services to fit these.

IMPORTANCE OF TQM
 Ensures superior quality products and services.
 Essential for customer satisfaction which eventually leads to customer loyalty.
 Helps an organization to design and create a product which the customer actually wants
and desires.
 Ensures increased revenues and higher productivity for the organization.
 Helps organization to reduce waste and inventory.
 Inculcates a strong feeling of teamwork.
 Ensures close co-ordination between employees of an organization.
 Reduced risks
 Keep up with the competition.
 Total quality management (TQM) is an ongoing process of detecting and reducing or
eliminating errors.
 Total quality management is used to streamline supply chain management, improve
customer service, and ensure that employees are properly trained.
 The focus is to improve the quality of an organization's outputs, including goods and
services, through the continual improvement of internal practices.
 Total quality management aims to hold all parties involved in the production process
accountable for the overall quality of the final product or service.
 There are often eight guiding principles to TQM that range from focusing on customers,
continually improving, and adhering to processes.

ADVANTAGES AND DISADVANTAGES OF TQM

TQM results in a company making a product for less when it's implemented correctly.
Companies that engage in TQM provide more consistent products that yield stronger customer
loyalty when they emphasize quality and minimize waste.

As TQM touches every department across an organization, a company may reap substantial
savings from materials sourcing, production, distribution, or back-office functions. Companies
that successfully implement TQM can usually react more quickly to change and proactively
plan ahead to avoid obsolescence.

A company must fully engage TQM principles to fully reap the benefits of TQM. This requires
substantial buy-in from every department across an organization. This level of commitment is
very difficult to achieve, requires substantial financial investment, and necessitates all levels of
management to engage TQM.

The conversion to TQM may be lengthy, and workers may feel resistant to change. A company
may be required to replace processes, employees, equipment, or materials in favor of an
untested, partially developed TQM plan. More skilled workers may decide to leave the
company if they feel TQM processes don't appropriately utilize their skill sets.

Total Quality Management

Pros
 Delivers stronger, higher quality products to customers.

 Results in lower company-wide costs

 Minimizes waste throughout the entire production and sale process.

 Enables a company to become more adaptable.

Cons
 May require substantial financial investment to convert to TQM practices.

 Often requires conversion to TQM practices over a long period of time.

 May be met with resistance to change.

 Requires company-wide buy-in to be successful.

ELEMENTS OF TOTAL QUALITY MANAGEMENT

 Customer Focus

Customer attention is a core component of Total Quality Management (TQM), a comprehensive

strategy for enhancing an organization’s effectiveness and quality. The client is the focus of the
organization’s activities and decision-making processes in TQM; they are more than just the
beneficiary of goods or services. Here is a closer examination of the role that customer attention
plays in TQM:

 Recognising Client Needs: TQM starts with a thorough comprehension of the needs,
expectations, and preferences of the client. Businesses need to aggressively seek client
feedback via surveys, feedback forms, interviews, and other methods. This information
offers perceptions on what clients value most and what areas want improvement.
 Consumer-focused culture: Customer focus should be embedded in the organization’s
culture rather than being just a departmental responsibility. Setting the example by
promoting a customer-centric mindset are leaders. They spread a common vision that
transcends every level of the organisation: providing clients with outstanding value.
 Constant Development: The cornerstone of attempts to continuously improve is customer
feedback. TQM encourages businesses to use consumer insights to pinpoint areas that
could use improvement. This can include everything from communication and support
procedures to product features and service quality.

In summary, putting the needs of the customer first is an essential component of TQM rather
than an optional one. It directs businesses towards providing clients with value that resonates,
fostering long-term success and competitiveness. Organisations can succeed in the pursuit of
quality and customer happiness by always attempting to understand and meet customer needs,
cultivating a culture of customer-centricity, and aligning processes and products accordingly.

 Leadership

Total Quality Management (TQM), a holistic strategy for enhancing the quality and effectiveness
of an organization’s processes, products, and services, is built around the concept of leadership.
For an organisation to successfully navigate the TQM path and promote a culture of continuous
improvement, effective leadership is essential. Here is a closer look at how leadership functions
in TQM:

 Vision and values setting: TQM begins with leadership establishing a distinct vision and
values for the company. Leaders stress the value of excellence, customer attention, and
ongoing progress. All personnel use this vision as their compass.
 Setting the Bar High: TQM values must be demonstrated through leaders. They must
exhibit a dedication to excellence and ongoing improvement in their deeds and choices. It
sets the tone for the entire organisation when workers witness leaders actively
participating in these activities.
 Employee Empowerment: Employee engagement and empowerment are highly valued in
TQM. Leaders should foster a culture where staff members feel empowered to find and
fix quality problems, suggest enhancements, and take responsibility for their work.

In TQM, leadership is a function that shapes the quality culture of the organisation, not merely a
title. Effective TQM leaders motivate and enable their employees to put quality first, pursue
continuous improvement, and continually provide customers with value. Organisations may
effectively sail the TQM path and achieve sustainable excellence in quality and performance
with the help of visionary leadership.
  Employee Involvement

A key component of Total Quality Management (TQM), a comprehensive strategy for enhancing
an organization’s quality and efficiency, is employee involvement. Employees are at the centre
of quality improvement initiatives, and TQM acknowledges that achieving excellence depends
on their active engagement. Here’s a closer look at how employees might contribute to TQM:

 Responsibility and ownership: Employees are encouraged by TQM to accept

responsibility for their work and the calibre of their deliverables. Employees are more
inclined to take ownership of the outcomes when they feel accountable for the calibre of
their efforts.
 Constant Development: The TQM-promoted culture of continuous improvement places a
high value on employee involvement. Employees are urged to spot areas for
improvement, make suggestions, and get involved in projects to solve problems.
 Knowledge and Expertise: Frontline workers are incredibly knowledgeable and skilled in
their job operations. Employees are in the best position to spot inefficiencies and
bottlenecks, according to TQM. Their suggestions could result in more productive and
successful procedures.

Employee involvement is a key principle of TQM, not a tangential component. It acknowledges

that workers are important resources with the capacity to advance quality. TQM organisations
use the collective intelligence and creativity of their staff to achieve greater standards of quality
and customer satisfaction by building a culture of involvement, engagement, and empowerment.
In the TQM journey, employee involvement is a crucial success factor.

 Process Approach

A key idea in Total Quality Management (TQM), a complete technique aimed at enhancing an
organization’s quality, effectiveness, and customer satisfaction, is the process approach.
Processes are at the centre of every action in TQM, and optimising their management is crucial
to achieving excellence. The significance of the process approach in TQM is examined in more
detail below:

 Recognizing Processes: A process in TQM is a collection of connected actions that

convert inputs into outputs with the intention of providing value to consumers. The first
step to managing processes successfully is to understand them.
 Method Mapping: TQM places a strong emphasis on the use of process mapping or
flowcharting to record and show how activities are connected. With the help of process
maps, it is simpler to spot bottlenecks, inefficiencies, and potential improvement areas
throughout the entire process.
 Ownership of the Process: Each process in the process approach has an owner who is in
charge of overseeing its effectiveness. Owners of processes make ensuring that they are
clearly defined, documented, and frequently evaluated for efficacy.

As a result, the process approach is more than just a technical component of TQM; it also
represents a core philosophical tenet. It emphasizes how crucial processes are to providing value
to consumers and places them at the center of organizational activity. The main goals of total
quality management are to decrease waste, increase efficiency, improve quality, and ultimately
increase customer happiness. Organizations can accomplish these goals by managing processes
effectively.

 Systematic Improvement

One of the fundamental tenets of Total Quality Management (TQM), a comprehensive strategy
for raising the caliber and effectiveness of an organization’s goods, services, and operations, is
systematic improvement. To achieve ongoing excellence, it concentrates on consistently
recognizing, resolving, and preventing problems. Here is a detailed analysis of TQM systematic
improvement:

 Culture of Continuous Improvement: The TQM notion of a continuous improvement

culture is the foundation of systematic improvement. It emphasizes continuous
improvement in the organizational culture.
 Making Decisions Based on Data: Decision-making in systematic improvement is based
on data and facts. To pinpoint areas that require improvement, organizations gather and
analyses data about procedures, quality measures, and customer input.
 Analyzing the root causes: TQM encourages root cause analysis for identified issues.
This entails looking farther to discover the root causes of issues and fixing them to stop
repetition.

In conclusion, a key component of total quality management is systematic improvement. It

makes sure that businesses consistently recognize and deal with challenges in order to improve
their operations, goods, and services. Organizations can achieve sustained excellence and satisfy
stakeholders’ and consumers’ changing needs by combining data-driven decision-making, root
cause analysis, the PDCA cycle, and employee involvement.

 Fact-Based Decision Making

Total Quality Management (TQM), a complete strategy for enhancing the quality and
effectiveness of an organization’s processes, products, and services, places a high priority on
fact-based decision making. TQM places a strong emphasis on using statistics and impartial
information to influence decisions. Let’s examine the significance of fact-based decision making
in TQM in more detail:

 The Foundation of Data: Data, according to TQM, should serve as the starting point for all
choices. This information can contain customer reviews, process data, performance
indicators, and other pertinent details.
 Gathering and analyzing data: The systematic collection and analysis of data is highly valued
in TQM. Data collection methods used by organizations include surveys, statistical analysis,
and process monitoring.
 Metrics Driven by Data: Key performance indicators (KPIs) and measures for quality,
efficiency, and customer satisfaction are established by TQM organizations. These indicators
act as a baseline for assessing performance and pinpointing potential improvement areas.
In conclusion, fact-based decision making is a core TQM principle that guarantees businesses
make educated decisions based on facts and unbiased information. Organizations may drive
improvements in quality, effectiveness, and customer satisfaction by methodically gathering,
analyzing, and using data. This will ultimately result in sustainable excellence in their goods,
services, and operations.

COMPONENTS OF QUALITY MANAGEMENT

Quality Planning

The first step of quality management is planning. You need to take the time to identify your
goals and what you want your baseline to be. You should determine what your quality standards
are, the requirements necessary to meet these standards, and what procedures will be used to
check that these criteria are being met. In this planning stage, you will want to consider:

 Stakeholder expectations – this section should document specifically what the customer
expects in terms of project quality. Including whether they have specified any external
quality standards and what their priorities are in terms of the areas affected by quality.
 Success criteria (as defined in the business case) in addition to the defined success
criteria this section should also define acceptable tolerances for achievement of those
objectives.
 Standards applicable (internal and external) – the project environment may require
that the Quality Plan incorporates the requirements of external standards. These could
range from the Company’s own quality standards to ISO 9000 or Health and Safety at
Work Legislation.
 Roles and responsibilities concerned with quality – these may include quality
assurance testing, supervision and management roles.
 The process that will be followed – these will be documented in a systematic way and
will govern the mechanisms for the product of the product specifications and testing
procedures.
 How continuous improvement will be carried out – this may include making
adjustments to processes where they are proven to be unsatisfactory.
 Project assurance techniques – This section will describe how assurance will be
performed and who is responsible. It will define policies of quality reviews and audits of
the management process.
 Quality control measures – will define control measures that will be used.
 Interactions with other processes such as configuration management, change control
and how these links will be established.

Quality Control
Once you have a plan in place, quality control comes into play. This is the process
of physically inspecting and testing what you laid out in the planning stage to make
sure it is obtainable. You need to confirm that all the standards you have put into
place are met, and you need to identify any mishaps or errors that need to be
corrected. The sooner you can catch these errors, the better. As such, you should be
paying attention to all aspects of the product, including both the materials used and
the process of putting them together.

Once the inspection data has been collected, it should be displayed in a way that
makes it easy to analyze. You can create histograms, run charts, or cause and effect
displays, and then easily share them through your document management
software to make sure everyone has access to them.

Quality Assurance

While quality control involves inspecting the actual products or services in the
field, quality assurance is reviewing the delivery process of services or the quality
management manufacturing of goods. By inspecting your goods or services at the
source, you can catch mistakes before they reach the customer. You can also fine
tune your processes to prevent errors in the future. When reviewing your product
or service during this stage of quality control management, you will want to follow
these steps:

 Confirm that everything is operating as it was agreed upon during the quality
planning stage
 Measure how effective your pre-determined processes are and confirm that
all compliance needs are being met
 Take note of any lessons learned
 Identify areas where there is an opportunity for a smoother process

To be effective, quality assurance must be completed regularly through

independent audits. For the best results, have the audit completed by a third-party
that is not financially or emotionally invested in the outcome.

Quality Improvement

Finally, after completing the quality control process, you need to thoroughly
review your findings and come up with a way to improve your methods going
forward. Quality control management is fruitless if you are not willing to make
changes when they are necessary. The desire for continual improvement is the goal
for every successful company. So, gather all your data, re-evaluate both the
processes and the product—always keeping compliance in mind—and then begin
the quality control management process again. With each cycle, you will end up
with a better product, happier customers, and more profit in your pocket.

STRATEGIC TOOLS AND TECHNIQUES OF TOTAL QUALITY

MANAGEMENT

Six Sigma:
Six Sigma is a thorough and data-driven approach that strives to boost process efficiency by
alleviating errors and variances. A defect prevalence of 3.4 parts per million (PPM) or less is
normally the aim, with the emphasis being on obtaining a high level of process capability. The
methodology uses the DMAIC (Define, Measure, Analyze, Improve, Control) paradigm to
discover challenges, gauge process performance, dig into the causes, place solutions into place,
and set up controls. Six Sigma equips businesses with the tools they need to make data-driven
decisions that raise productivity, cut down on waste, and raise customer satisfaction.

Root Cause Analysis (RCA):

RCA is a methodical process for uncovering the root causes of issues or flaws. It entails
continually asking “why” to find the root of crises. Organizations can prevent reoccurring
issues and improve the product’s quality and process productivity by targeting fundamental
roots rather than merely symptoms. Techniques, including the 5 Whys, Fishbone Diagrams,
and Fault Tree Analysis, are examples of RCA approaches.

Kaizen:
The Japanese concept of kaizen emphasizes the ongoing development of systems, goods, and
services. It encourages employees across all ranks to routinely find and put into practice minor
incremental modifications. This tenet fosters an environment of ongoing learning and provides
teams with the autonomy to take responsibility for quality enhancement. These subtle
modifications build up into substantial positive outcomes over time, enhancing productivity
and client satisfaction.

Statistical Process Control (SPC):

SPC is a collection of statistical approaches utilized to monitor and regulate processes to
ensure they adhere to predetermined bounds. SPC assists in identifying trends, variations, and
irregularities that could result in flaws or non-conformance by gathering and analyzing real-
time data while a process is being carried out. Employing SPC enables businesses for proactive
measures to combat process deviations and resolve quality concerns before they escalate.
Quality Function Deployment (QFD):
QFD is an organized approach for translating customer demands and requirements into
particular technical details and design elements. It makes sure that the finished good or service
meets customers’ needs by establishing a matrix that matches consumer expectations with
organizational capabilities. QFD promotes cross-functional cooperation and customer attention
during the development process leading to products that precisely satisfy customer needs and
display higher levels of quality.

Pareto Analysis:
The Pareto principle, frequently referred to as the 80/20 rule, asserts that a sizable fraction of
issues are frequently brought on by a small number of underlying factors. A Pareto chart,
which graphically displays the frequency or impact of numerous issues in descending order, is
created as part of the Pareto analysis process. Organizations may effectively manage resources
and address the core reasons causing the most profound impact on quality by emphasizing the
most crucial components, which may culminate in significant improvements.

It suggests that most effects come from relatively few causes. In quantitative terms: 80% of the
problems come from 20% of the causes (machines, raw materials, operators etc.); 80% of the
wealth is owned by 20% of the people etc. Therefore, effort aimed at the right 20% can solve
80% of the problems. Double (back-to-back) Pareto charts can be used to compare 'before and
after' situations. General use, to decide where to apply initial effort for maximum effect.

Pareto Principle

Scatter Plots
A scatter plot is effectively a line graph with no line - i.e. the point intersections between the two
data sets are plotted but no attempt is made to physically draw a line. The Y axis is
conventionally used for the characteristic whose behaviour we would like to predict. Use, to
define the area of relationship between two variables.
 Warning: There may appear to be a relationship on the plot when in reality there is none, or both
variables actually relate independently to a third variable.
Scatter Plots

Control Charts
Control charts, commonly referred to as Shewhart charts/process-behavior charts, are visual
aids for tracking the efficacy of processes over time. These graphs show data points paired
with the upper and lower control boundaries generated from prior data. New data points that
deviate from these bounds or display particular patterns indicate potential modifications in the
process. Control charts assist organizations in identifying irregularities early, allowing for
prompt corrective action and process stability maintenance.

They are a method of Statistical Process Control, SPC. (Control system for production
processes). They enable the control of distribution of variation rather than attempting to control
each individual variation. Upper and lower control and tolerance limits are calculated for a
process and sampled measures are regularly plotted about a central line between the two sets of
limits. The plotted line corresponds to the stability/trend of the process. Action can be taken
based on trend rather than on individual variation. This prevents over-correction/compensation
for random variation, which would lead to many rejects.
Flow Charts
Pictures, symbols or text coupled with lines, arrows on lines show direction of flow. Enables
modelling of processes; problems/opportunities and decision points etc. Develops a common
understanding of a process by those involved. No particular standardisation of symbology, so
communication to a different audience may require considerable time and explanation.
Cause and Effect Fishbone Diagram (Ishikawa Diagram):
This is a visual tool for investigating probable factors that could potentially be driving a
particular issue or effect. The illustration mimics the skeleton of a fish, with the “head”
standing in for the problem and the “bones” standing in for other groups of probable causes,
including people, processes, tools, the environment, and materials. This method promotes team
problem-solving and brainstorming while facilitating an in-depth analysis of all potential
variables influencing quality.

The cause-and-effect diagram is a method for analysing process dispersion. The diagram's
purpose is to relate causes and effects. Three basic types: Dispersion analysis, Process
classification and cause enumeration. Effect = problem to be resolved, opportunity to be grasped,
result to be achieved. Excellent for capturing team brainstorming output and for filling in from
the 'wide picture'. Helps organise and relate factors, providing a sequential view. Deals with time
direction but not quantity. Can become very complex. Can be difficult to identify or demonstrate
interrelationships.

Histogram or Bar Graph

A Histogram is a graphic summary of variation in a set of data. It enables us to see patterns that
are difficult to see in a simple table of numbers. Can be analysed to draw conclusions about the
data set.

A histogram is a graph in which the continuous variable is clustered into categories and the value
of each cluster is plotted to give a series of bars as above. The above example reveals the skewed
distribution of a set of product measurements that remain nevertheless within specified limits.
Without using some form of graphic this kind of problem can be difficult to analyse, recognise or
identify.
Check Sheets
A Check Sheet is a data recording form that has been designed to readily interpret results from
the form itself. It needs to be designed for the specific data it is to gather. Used for the collection
of quantitative or qualitative repetitive data. Adaptable to different data gathering situations.
Minimal interpretation of results required. Easy and quick to use. No control for various forms of
bias - exclusion, interaction, perception, operational, non-response, estimation.

Check Lists
A Checklist contains items that are important or relevant to a specific issue or situation.
Checklists are used under operational conditions to ensure that all important steps or actions have
been taken. Their primary purpose is for guiding operations, not for collecting data. Generally
used to check that all aspects of a situation have been taken into account before action or
decision making. Simple, effective.

THE DEMMING CYCLE OF CUSTOMER SATISFACTION

The PDCA cycle, also known as the Deming Wheel or Deming Cycle, was developed by Dr. W.
Edwards Deming, a renowned statistician and quality management expert. Dr. Deming
advocated using data and statistical analysis to improve quality and productivity in
organizations. In the 1950s, he introduced the PDCA cycle as a framework for continuous
improvement in the manufacturing process. The PDCA cycle was popularized by Dr. Deming’s
book “Out of the Crisis,” published in 1986. In the book, he explained the concept of the PDCA
cycle and how it could be used to achieve continuous improvement in any process.

The PDCA cycle is a continuous improvement framework that helps organizations to identify
and solve problems, improve processes, and enhance customer satisfaction. Today, the PDCA
cycle is widely used in various industries, including manufacturing, healthcare, education, and
service organizations, as a continuous improvement and quality management tool.
The PDCA cycle is a four-stage problem-solving framework organization can use to improve
their processes, products, and services continually. The four stages of the Deming Wheel PDCA
cycle are:

1. Plan
2. Do
3. Check
4. Act

STAGES OF DEMING WHEEL PDCA CYCLE

1. Plan
The first stage of the PDCA cycle is “Plan,” which involves identifying a problem or opportunity
and developing a plan to address it. This stage includes defining the problem, setting goals, and
developing a plan to achieve those goals. In this stage, involving the stakeholders affected by the
change is essential to ensure their buy-in and commitment to the plan.

An example of the “Plan” stage of the PDCA cycle is a company that wants to reduce its
production costs. The first step would be to identify the problem, which is the high production
cost. The company aims to reduce production costs by 20% in six months. The team would then
develop a plan that would include analyzing the production process to identify inefficiencies,
testing new methods to reduce costs, and obtaining feedback from the production team.

The team would also involve stakeholders such as suppliers and customers to ensure that their
needs and concerns are considered in the plan. The plan would be documented, and everyone
involved would understand their roles and responsibilities in the implementation.

2. Do
The second stage of the PDCA cycle is “Do,” which involves implementing the plan developed
in the “Plan” stage. This stage includes executing the plan and collecting data to monitor its
effectiveness. It is essential to ensure that everyone involved in the implementation understands
their roles and responsibilities and has the resources they need to carry out their tasks effectively.

An example of the “Do” stage of the PDCA cycle is implementing the plan to reduce production
costs in the previous stage. The team would start executing the plan, including testing new
production methods, training the production team, and tracking production costs. The team
would also collect data on the production process and analyze it to identify any issues or
inefficiencies. During this stage, it is crucial to ensure the plan is executed and any issues are
addressed promptly.
Suppose the team identified that the production team struggled to adapt to the new production
methods. In that case, they would provide additional training and support to help the team
understand the new methods and how to implement them effectively. The team would also
collect data on the production costs and analyze them to ensure that they are on track to reduce
production costs by 20%.

3. Check
The third stage of the PDCA cycle is “Check,” which involves measuring the results of the plan
implemented in the “Do” stage. This stage includes comparing the actual and expected results,
identifying any deviations, and analyzing the data to understand the root causes of the deviations.
The analysis helps identify whether the plan successfully achieved its goals and whether any
modifications are necessary.

An example of the “Check” stage of the PDCA cycle is analyzing the production cost data
collected in the “Do” stage to identify any deviations from the expected results. Suppose the
team expected a 20% reduction in production costs, but the data showed only a 10% reduction.
In that case, the team would analyze the data to identify the root causes of the deviation. They
may find that the new production methods are not as efficient as expected or that the production
team needs additional training.

The team would also analyze the data to identify trends or patterns that could provide insights
into the production process’s performance. The team would then compare the actual and
expected results to determine the plan’s success in achieving its goals. Based on the analysis, the
team would determine whether any modifications to the plan are necessary to achieve the desired
results.
4. Act
The fourth and final stage of the PDCA cycle is “Act,” which involves taking corrective action
based on the analysis results conducted in the “Check” stage. This stage includes implementing
modifications to the plan or process to improve its effectiveness and then starting the PDCA
cycle again to continue the continuous improvement cycle.

An example of the “Act” stage of the PDCA cycle is modifying the production process to
address the root causes of the deviation in the production cost reduction plan identified in the
“Check” stage. Suppose the team identified that the new production methods were less efficient
than expected. In that case, they may test additional methods to identify the most efficient
process. The team would also provide additional training to the production team to ensure they
understand and implement the new methods effectively.

After implementing the modifications, the team would start the PDCA cycle again, starting with
the “Plan” stage. The team would identify new problems or opportunities and develop a new plan
to address them. The cycle continues, with each iteration bringing the organization closer to its
goals and achieving continuous improvement. By continuously applying the PDCA cycle,
organizations can achieve incremental improvements in their processes and products, improving
customer satisfaction and increasing efficiency.

Objectives of PDCA

The objective of PDCA is to simplify management routines and facilitate the implementation of
positive changes. To do this, it works based on some key aspects:

Problem-Solving
The PDCA cycle can be applied to solve any type of problem in a company, not only in
businesses but also in personal contexts.
Its four-stage execution model allows for planning a solution that is continuously checked,
minimizing the impacts of the initial problem.

Decision-Making
This working methodology is based on concrete information and continuous data checking,
which improves decision-making. Thus, business directions are defined based on comprehensive
and relevant analyses.
Moreover, managers are always alert to potential problems, taking preventive action.
Innovation
PDCA facilitates the organization of new ideas, allowing for the implementation of new and
innovative solutions to everyday problems.
Flexibility And Agility
Through PDCA, companies can adapt more quickly to the constant changes in the market,
developing a more flexible and dynamic profile - essential for contemporary businesses.

Quality Improvement
PDCA is directly related to Quality Management, promoting continuous improvement in all
organization processes.

How to Implement the Deming Wheel PDCA Cycle?

Implementing the Deming Wheel PDCA cycle involves six essential steps that organizations can
follow to achieve continuous improvement:

1. Identifying a process for improvement: The first step is to identify a process that requires
improvement. This could be a business process, a production process, a service process, or any
other process within the organization.

2. Defining the problem or objective: Once the process has been identified, the next step is to
define the problem or objective that needs to be addressed. The problem or objective should be
clear, specific, measurable, and achievable within a defined time frame.

3. Analyzing the process: The third step involves analyzing the process to identify any areas that
need improvement. This could involve gathering data, conducting surveys, or performing root
cause analysis to identify the underlying causes of the problem.

4. Developing and implementing a solution: Based on the analysis conducted in the previous
step, the next step is to develop and implement a solution to address the problem or achieve the
objective. The solution should be specific, measurable, achievable, relevant, and time bound.

5. Measuring the results: After implementing the solution, the next step is to measure the results
to determine whether the solution has effectively addressed the problem or achieved the
objective. This could involve collecting data, conducting surveys, or performing statistical
analysis to determine the solution’s impact.
6. Standardizing the solution: The final step is to standardize the solution to ensure that it is
incorporated into the organization’s processes and becomes a part of its culture. This could
involve documenting the solution, training employees, or modifying the organization’s policies
and procedures to ensure the solution is integrated into the organization’s processes.

Benefits of the Deming Wheel PDCA Cycle

The Deming Wheel PDCA cycle offers several benefits to organizations adopting it as a
continuous improvement framework. Some of these benefits include:

Continuous improvement
The PDCA cycle is designed to enable organizations to achieve continuous improvement by
regularly evaluating their processes, identifying areas for improvement, and implementing
solutions. This leads to incremental improvements in processes, products, and services over time.

Improved efficiency and effectiveness

By identifying and eliminating waste and inefficiencies in processes, the PDCA cycle helps
organizations to improve their efficiency and effectiveness, leading to cost savings and improved
profitability.

Enhanced communication and teamwork

The PDCA cycle promotes communication and collaboration among team members as they work
together to identify problems, develop solutions, and implement changes. This helps to build a
culture of teamwork and continuous improvement within the organization.

Better decision-making
The PDCA cycle encourages data-driven decision-making by requiring organizations to collect
and analyze data to identify problems and measure the effectiveness of solutions. This helps to
ensure that decisions are based on objective data rather than subjective opinions.

Improved customer satisfaction

By improving processes and products, the PDCA cycle helps organizations meet and exceed
customer expectations, leading to improved customer satisfaction and loyalty.
Sectors Where the Methodology can be Applied.

Manufacturing Industry: To improve production efficiency, reduce defects, optimize the

supply chain, and enhance product quality.
Services: In sectors such as banking, hospitals, restaurants, and insurance companies, PDCA can
be applied to enhance customer satisfaction, optimize internal processes, and reduce waiting
times.
Healthcare: PDCA can be used to improve the quality of healthcare, reduce medical errors,
optimize workflows, and enhance clinical outcomes.
Education: It can be applied to improve teaching methods, assess, and adjust the curriculum,
and enhance students' academic performance.
Information Technology: PDCA can be utilized to improve software development processes,
project management, and operational efficiency of information systems.

Real-life examples of the Deming Wheel PDCA Cycle

Toyota Production System

Toyota is one of the most well-known examples of an organization successfully implementing

the PDCA cycle. The Toyota Production System (TPS) is a lean manufacturing system based on
continuous improvement and waste elimination principles. The TPS uses the PDCA cycle to
identify inefficiencies in the manufacturing process and implement solutions to improve
efficiency and reduce waste.
Nike
Nike implemented lean methodologies to optimize its manufacturing process. However, to
improve the poor working conditions, they adopted the PDCA Cycle. This technique empowered
Nike's employees, partners, and customers. Nike improved working conditions, eliminated
waste, and employed value-oriented managers. This commitment to lean methods and continuous
improvement helped Nike double its size, going from $100 billion in 2015 to over $200 billion in
2021.
Nestlé
Nestlé aimed to reduce waste by implementing lean methodologies. They adopted the Kaizen
method to ensure that continuous improvement is the responsibility of everyone and used the
PDCA cycle to provide a detailed framework and increase accountability.
Nestlé Waters used techniques such as value stream mapping to illustrate the flow of materials
and information needed to deliver finished products to consumers. This process helped new
bottling plants increase their efficiency.
Conclusion
The Deming Wheel PDCA cycle is a powerful tool that organizations can use to achieve
continuous improvement and drive growth. It is a management methodology that aims to
continually improve processes. It is based on four stages: plan, do, check, and act. The PDCA
cycle provides a systematic approach to problem-solving and process improvement, which

can help organizations to identify and eliminate inefficiencies and waste in their
operations, leading to increased efficiency, profitability, and customer satisfaction.
By adopting the PDCA cycle as a framework for continuous improvement,
organizations can build a culture of teamwork, collaboration, and data-driven
decision-making, which can help to drive growth and success in today’s
competitive business environment.

IDENTIFYING CUSTOMER NEEDS

Customer needs refer to a customer’s motives for purchasing a product, brand, or
service, or alternatively the attributes of a product, brand or service that tempt them
to buy. And it’s these customer needs that every business or organization is striving
to identify.
Types of customer needs
Internal customer needs
These are the stakeholders that work within an organization, namely your
employees. The needs of this internal audience group are reliant on the assistance
they receive from other individuals or departments to complete their work.
For example, a marketing department typically has to liaise with then complete
collateral for various departments within a company. These departments are
essentially the marketing team’s own internal customers, and they need to provide
a good service if they are to keep these audiences happy and retain their own jobs.

External customer needs

These are the people and businesses that pay for the products and services
produced by an organisation and not directly connected to it. Unlike internal
customers that have no choice about who they have to work alongside, external
customers have both a choice and influence over who they choose to liaise with
and ultimately buy from.

For example, let’s say you were a support provider of IT services. Given the
freedom an external customer has over partnering with you. Unless you’re
consistently delivering timely, high-quality support, they may decide to take their
business elsewhere.

How To Identify Customer Needs

1. Conduct focus groups

A focus group is a research technique in which you interview a group of people who represent
your target audience.

One of the best ways to identify and understand customer needs is to talk directly with your
audience. The goal of a focus group is to foster an open dialogue with attendees—potential
customers or targeted customer personas to get a better understanding of how your customers
may feel about your brand and the products or services you provide.

Can’t get people in a room together for a focus group? Try sending online surveys to collect
feedback, creating online communities like Facebook and LinkedIn groups, or leveraging
chatbots.

2. Use social listening

Identify which social platforms your customers are most active on and study what they talk
about. What do they enjoy? What are their pain points? What questions do they ask?

Social listening is a way to monitor conversations, keywords, and hashtags that can help you
identify trends and opportunities. Listening can be as simple as searching for relevant topics, or
you might use a more advanced tool like social listening software to respond to new
opportunities as they happen in real time.
Being at the forefront of a trending topic, hashtag, or challenge is essential to getting in front of
customers at the right time. Respond to followers in an authentic manner when anyone engages
with you. A fast response also allows you to provide quality customer service and encourage
further interaction. Start a conversation, and people will be more likely to feel their needs are
being met when they know you’re listening.

3. Do keyword research

Keyword research provides valuable insight into the questions, problems, and solutions your
target audience is searching for. This analysis should be the basis for meeting your customers’
needs, helping you strategize your approach to content. Target the right keywords with effective
research, and you’ll be on your way to reaching the right people.

Driving organic traffic that exemplifies your ideal customer is achieved by optimizing
your website and creating content for the keywords your customers are actively searching. Some
of those people will be ready to convert.

Keyword research is one of the most important tactics for identifying the needs of searchers
since it helps connect the right audience to your site.

Use it to go inside the mind of your customer. What are they searching for? Why are they
searching for it? Know the answers, and then you can match your content to their needs. Strong
keyword research gives you direction on how to optimize your website and put your brand in
front of searchers.

Strategies for Retaining Customers.

1. Get to know your customers

You need a solid understanding of customers to know how to serve them. Research
is the first step in figuring out their desires, pain points, and successes, and
developing user empathy. Quantitative and qualitative research can work hand in
hand here to learn user behavior, and the causes and motivations of that behavior.

2. Create a customer feedback loop

One of the biggest keys to retaining customers is to know how customers feel.
When you understand customer sentiment and what they like/dislike, you can take
action on their feedback, refine your approach, and meet their needs. E.g Send
customer surveys

3. Reward promoters and loyal customers

If a customer doesn’t feel appreciated, all it takes is one mistake or a “better
opportunity” with a competitor for them to churn. It’s important that you don’t take
your loyal customers for granted. By showing customers you appreciate their
business, you provide them with yet another reason (besides your great product) to
stick around. To buy your business some customer goodwill, consider offering:

 Loyalty programs
 Discount codes
 Special offers
 VIP events
 Early-access benefits

4. Personalize support interactions

Customers feel frustrated when they have to explain an issue over and over. And
exhausting, repetitive interactions make customers more likely to leave. Equip
agents with the tools they need in a customer service solution to easily pull
customer information, view the conversation history, and streamline
conversations.
5. Maintain a customer communication calendar.

Even if your customers aren't reaching out with feedback, your team should be proactive in
communicating with them. Consider adopting a communication calendar to manage customer
engagements and create opportunities to upsell and cross-sell. A communication calendar is a
chart that keeps track of customer queries. It tells you the last time that a customer has reached
out and alerts you when existing customers haven't interacted with your brand.

QUALITY COSTS
Quality costs are the costs associated with preventing, detecting, and remediating product
issues related to quality. Quality costs do not involve simply upgrading the perceived value
of a product to a higher standard. Instead, quality involves creating and delivering a product
that meets the expectations of a customer. Thus, if a customer spends very little for an
automobile, he will not expect leather seats and air conditioning - but he will expect the
vehicle to run properly. In this case, quality is a vehicle that functions, rather than a luxury
experience.

 Prevention Costs
You incur a prevention cost to keep a quality problem from occurring. It is the least
expensive type of quality cost, and so is highly recommended. Prevention costs can
include proper employee training in assembling products and statistical process control
(for spotting processes that are beginning to generate defective goods), as well as robust
product design and supplier certification. A focus on prevention tends to reduce
preventable scrap costs, because the scrap never occurs.

The activities are planned and designed before operations to guarantee good quality and prevent
bad quality products or services. Examples include new product review, quality planning,
supplier surveys, process reviews, quality improvement teams, education, and training.

 Appraisal Costs
As was the case with a prevention cost, an appraisal cost is incurred in order to keep a
quality problem from occurring. This is done through a variety of inspections. The least
expensive is having production workers inspect both incoming and outgoing parts to and
from their workstations, which catches problems faster than other types of inspection. Other
appraisal costs include the destruction of goods as part of the testing process, the
depreciation of test equipment, and supervision of the testing staff. Measurement and
inspection activities during operations do determine conformance to quality requirements.
Examples include inspection, testing, process or service audits, calibration of measuring and test
equipment.

 Internal Failure Costs

An internal failure cost is incurred when a defective product is produced. This appears in the
form of scrap or reworked goods. The cost of reworking goods is part of this cost. These
expenses incurred to remedy defects discovered before the delivery of a product or service.
Examples include scrap, rework, re-inspection, re-testing, material review, material downgrades.

 External Failure Costs

You also incur an external failure cost when a defective product was produced, but now the
cost is much more extensive, because it includes the cost of product recalls, warranty
claims, field service, and potentially even the legal costs associated with customer lawsuits.

It also includes a relatively unquantifiable cost, which is the cost of losing customers.
Expenses incurred to remedy defects discovered by customers after the customer receives the
product or service. Examples include processing customer complaints, customer returns,
warranty claims, product recalls.

Relationship between quality and profitability

Quality costs can arise anywhere in a company. There may be product design issues that begin in the
engineering department, as well as manufacturing problems that can create product flaws. Further,
the procurement department may acquire substandard components that result in product flaws. In
addition, the order entry department may have incorrectly entered a customer order, so that the
customer receives the wrong product. These issues all result in quality costs.

Impact of Quality Costs on Profitability

Quality costs can comprise a major portion of the total expenses of a business, though they
are hidden within its normal cost recording system, which is oriented more toward recording
by responsibility center than by quality issue. The mitigation of quality issues can greatly
increase the profitability of a business, as well as enhance the level of customer retention.

The business climate is becoming increasingly more competitive. There are multiple options
available to the consumer for nearly every product on the market. Companies must stay price
competitive to survive. The top performing companies set themselves apart from the competition
by listening to the voice of the customer and providing products that meet the customer’s
requirements while maintaining a high level of quality and dependability. These companies
measure Cost of Quality and use the information gained to their advantage. The principle of Cost
of Quality is similar to a commercial that aired years ago on television that advertised oil filters.
The tag line was “Pay Me Now or Pay Me Later”. The message was that preventive maintenance
of your vehicle could prevent more costly repairs down the road. Cost of Quality is much the
same. An organization can choose to invest in upfront quality costs to reduce or prevent failures
or pay in the end when the defect is eventually discovered by the customer. In too many cases
organizations choose the latter. Product failures can result in increased warranty costs and
possibly even product recalls. The impact to the bottom line can be devastating. In addition, there
are the hard to measure costs incurred through loss of brand equity and possible decline in future
sales. Cost of Quality can have an immense impact on a company’s bottom line, positive or
negative. High quality produces a higher return on investment (ROI) for any given market share.
Fewer defects or field failures result in lower manufacturing and service costs; as long as these
gains exceed any increase in expenditures by the firm on defect prevention, profitability will
improve. Improvements in performance, features, or other dimensions of quality lead to increased
sales and larger market shares.

QUALITY TRILOGY

Trilogy is a universal way of thinking about managing for quality leadership—it fits all
functions, all levels, and all product and service lines. The underlying concept is that
organizations must use three universal processes:

 Quality Planning (Quality by Design)

 Quality Control (Process Control & Regulatory)
 Quality Improvement (Lean Six Sigma)

The Juran Trilogy diagram is a display of the interrelationships of the three processes with time
on the horizontal axis and cost of poor quality (what goes up is bad) on the vertical axis.To listen
to
 1. Quality planning (Quality by Design)

This step involves identifying the customer’s needs and expectations and determining how to
meet those needs. Quality by Design (QbD) is a structured process for designing and launching
new products. Products include goods, services, information, or internal processes. A high-
quality product meets specific customer needs so effectively that they will buy or use more of the
product in preference to other sources for meeting the need.

2. Quality control (Process Control & Regulatory)

This step involves monitoring and measuring the process to ensure that it meets the quality
standards set in the planning phase. The control process detects and takes action on sudden
quality problems; the improvement process identifies and takes action on frequent quality
problems. In the control process, statistical control charts detect the existence of special causes of
variation that result in sudden problems. The charts show sample data falling beyond statistical
control limits, i.e., the process is “out of statistical control.”
Conversely, when a chart shows that a process is “in statistical control,” the process is in a state
of stability, and variation is due to a set of common causes inherent in the process. Statistical
control means stability, but stability does not always mean customer satisfaction with the result.
Unfortunately, a process in statistical control can have serious quality problems. Because the
process is stable, the problems will continue (become chronic) unless a basic change in the
system of common causes is made. Such a change, which typically affects the average or
variation, is the job of improvement. “Removal of a special cause of variation, to move toward
statistical control, important though it may be, is not improvement of the process” (Deming,
1986, page 338).

3. Quality improvement (Lean Six Sigma)

This step involves making changes to the process to improve its performance and identifying and
eliminating the root causes of defects. Lean Six Sigma is quite simply the integration
of Lean and Six Sigma methodologies to reduce waste, defects (variation) and increase
effectiveness and results. Lean focuses on efficiency, and Six Sigma focuses on how
effectiveness can lead to faster results.

Lean Six Sigma is a team-focused managerial approach that seeks to improve performance by
eliminating resource waste and defects. It combines Six Sigma methods and tools with the lean
manufacturing/lean enterprise philosophy. It strives to eliminate the waste of physical resources,
time, effort, and talent while assuring quality in production and organizational processes.

Simply put, Lean Six Sigma teaches that any use of resources that doesn't create value for the
end customer is considered a waste and should be eliminated. Lean Six Sigma is a combination
of Lean methodology and Six Sigma strategy. Lean methodology was established by Japanese
automaker Toyota in the 1940s. Its purpose was to remove non-value-adding activities from the
production process.

Six Sigma, on the other hand, was established in the 1980s by an engineer at U.S.
telecommunications company Motorola who was inspired by Japan's Kaizen model. It was
trademarked by the company in 1993. Its method seeks to identify and reduce defects in the
production process. It also strives to streamline the variability of the production process. Lean
Six Sigma emerged in the 1990s as large U.S. manufacturers attempted to compete with Japan's
better-made products. The combination strategy was introduced by Michael George and Robert
Lawrence Jr. in their 2002 book Lean Six Sigma: Combining Six Sigma with Lean Speed.

Together, they are more powerful than either method applied independently of the other. A
successful Lean Six Sigma deployment depends on a clear understanding of the roles,
responsibilities, structures and training requirements of the employee.

Implementation of Quality Management

A QMS is a coordinated set of values and processes implemented by an organization to ensure

that it meets the standards demanded by its customers and any key stakeholders. The ISO
9001:2015 standard is the relevant international standard that sets out the broad requirements of
a quality management system.
Key Takeaways

 Importance of a QMS: Implementing a quality management system helps consolidate

supply chain data and organize it to allow for actionable insights.
 What a QMS Requires: An effective quality management system requires clear
standards and goals, an easy-to-use platform, and standardized documentation practices.
 How to Implement a QMS: There are five key steps in implementing a quality
management system, including identifying key performance indicators, mapping your
supply chain, and building best practice guides.

What Does a Quality Management System Require?

1. Clear Standards and Goals: The expectations you have for quality workmanship,
efficient product delivery, and ethical practices should be outlined in detail and made
available to every supplier, manufacturer, vendor, warehouser, and stakeholder in your
operation.
2. An Easy-To-Use Platform: The quality management system must include

 A dashboard of immediate action alerts

  Inspection task assignments -- by product, test, inspector, and date
 Inspection workflows for inspectors to follow
 Report results -- Approved and rejected
 Data analysis and statistics per supply chain facility, such as failure-rate
 Organized contact information for all supply chain managers and inspectors
 Network access through any mobile device (or a dedicated mobile inspection app)
 Access to best practice training courses

3. Documentation : Standardized, up-to-date, and easily accessible documentation of every

product test and factory inspection. Plus, necessary certification must be stored and
maintained to prevent non-compliances from going unaddressed.

The following are the key steps in implementing a quality management system:

1. Define the scope of the QMS by identifying all areas of your business that relate to
quality and specifying their requirements under the QMS. What does quality look like for
your products and each stage of the supply chain?
2. Identify all metrics required to monitor your performance in meeting those quality
requirements. What are your key performance indicators (KPIs)? Understanding which
metrics to track – and where you’re starting from – will allow you to measure the success
of your QMS in the future.
3. Measure how well tasks are being completed using those metrics and make adjustments
as needed.
4. Implement a training program for suppliers on how to perform their jobs effectively
under the QMS. This will help them understand how their actions affect overall
performance levels within your organization's supply chain structure.
5. Perform supply chain mapping to ensure that every partner is aware of their
responsibilities, production goals, existing inspection results, and certification
requirements (obtained or outstanding).
6. Before distributing materials such as inspection templates and best practice guides, get
them reviewed by industry and Testing, Inspection, and Certification (TIC) service
experts to ensure validity and coverage of all relevant points.
 WORKPLACE CULTURE

Forbes defines workplace culture as: “The shared values, belief systems, attitudes, and the set
of assumptions that people in a workplace share.”

Why Is Workplace Culture Important

It attracts and retains employees.

A positive workplace culture is one that is built on meaningful work, open communication,
and core values. And luckily for employers who have one, once an employee is embraced by a
strong workplace culture like this, they don’t have many reasons to leave.

It increases employee engagement.

A true positive workplace culture is one that shifts and evolves based on the different needs and
attitudes of employees, as well as having mechanisms in place to solve problems that may lead to
a toxic culture. With these mechanisms in place, employees are better able to engage in their
work.

Employee wellbeing

Does your organization value mental health to the same degree as physical health? Work culture
has a significant impact on employees’ wellbeing, and the COVID-19 pandemic has compelled
employers to put more thought into keeping workers safe and healthy.
Wellbeing was the top-ranked trend of importance in the 2021 Deloitte Global Human Capital
Trends study, with 80% of leaders identifying it as important or very important to their
organization’s success. Many organizations have moved to remote working and installed
measures to give their people a better work-life balance, including flexible hours based around
childcare. This can help staff feel supported and valued.

Employee performance and productivity

Work culture influences the way people perform, which, ultimately, can directly impact your
bottom line. A happy, supportive workplace energizes people to come to work each day and
boosts mood and concentration. Organizations with stronger cultures are generally more
successful and have high productivity levels.
In fact, happy workers are 13% more productive than unhappy ones, according to research by
Oxford University.

Communication
Good communication helps create mutual respect and trust, regardless of individual roles and
responsibilities. Workplace cultures where people can’t ask questions, float ideas or easily
connect with each other are less transparent and might not get the best from people. To achieve
engagement, communication needs to involve open, two-way conversations.

Transparency
Transparency in business is key to creating trust. If you can create a more open working
environment, people feel empowered to communicate in constructive ways. Meetings and
brainstorming sessions become more valuable as organizations hear real opinions - and fresh
ideas - from every corner of the business. And ultimately, that’s good for business.

References

 The Tools of Quality; Quality Progress, Nov 1990; J T Burr.

 The Tools of Quality; Quality Progress, Aug 1990; P D Shainin.
 Sarazen, JS., The Tools of Quality; Quality Progress, July 1990.
 Production Systems; J L Riggs, Wiley, 1987.
 Production/Operations management; Terry Hill, PHI, 1983.
 The Tools of Quality; Quality Progress, Sept 1990; The Juran Institute