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TQM

The document provides an overview of quality management, including definitions, approaches, types, and costs associated with quality. It covers key concepts such as Total Quality Management (TQM), Six Sigma, Lean Management, and ISO standards, emphasizing the importance of customer satisfaction and continuous improvement. Additionally, it outlines the dimensions of product and service quality, highlighting the need for organizations to meet customer expectations and enhance operational efficiency.

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Marian Salvador
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0% found this document useful (0 votes)
31 views10 pages

TQM

The document provides an overview of quality management, including definitions, approaches, types, and costs associated with quality. It covers key concepts such as Total Quality Management (TQM), Six Sigma, Lean Management, and ISO standards, emphasizing the importance of customer satisfaction and continuous improvement. Additionally, it outlines the dimensions of product and service quality, highlighting the need for organizations to meet customer expectations and enhance operational efficiency.

Uploaded by

Marian Salvador
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Week 1: Introduction to Quality

Learning Objectives:

●​ Define Quality: Its Approaches, Types, and Levels.


●​ Discuss Different Quality Paradigms.
●​ Explain Quality-Related Activities That Incur Costs.

Key Concepts:

●​ Definitions of Quality by Experts:


○​ J.M. Juran: "Fitness for Use/Purpose."
○​ Philip Crosby: "Conformance to Specifications."
○​ Dr. Kaoru Ishikawa: "Most economical, useful, and always satisfactory to
the customer/audience."
○​ Armand V. Feigenbaum: "A total composite of product and service
characteristics meeting customer expectations."
●​ What QUALITY Stands For:
○​ Q: Qualitative in meeting customer expectations.
○​ U: Understanding customer needs and feedback.
○​ A: Accuracy in meeting specifications.
○​ L: Leveraging resources efficiently.
○​ I: Improvement through continuous refinement.
○​ T: Trust-building by delivering consistent results.
○​ Y: Yielding value that balances cost and performance.
●​ Approaches to Quality (David Garvin):
○​ Transcendent: Quality is innate excellence, universally recognizable
(e.g., "You will know it when you see it").
■​ Example: A luxury car brand like Rolls-Royce.
○​ Product-Based: Quality is measurable and tied to specific attributes.
■​ Example: A smartphone with high-resolution display and long
battery life.
○​ User-Based: Quality is subjective and based on customer preferences.
■​ Example: A user’s satisfaction with a customized laptop.
○​ Manufacturing-Based: Quality is conformance to design specifications.
■​ Example: Factory-built cars matching design blueprints.
○​ Value-Based: Quality is the balance between performance and price.
■​ Example: A budget-friendly but durable washing machine.
●​ Types of Quality:
○​ Quality of Design: Ensures the product/service meets customer needs.
■​ Example: Designing a phone based on market research.
○​ Quality of Conformance: Ensures the product matches design
specifications.
■​ Example: Consistent assembly line production.
○​ Quality of Performance: Measures functionality and customer
satisfaction.
■​ Example: A car delivering expected fuel efficiency.
●​ Quality Levels:
○​ Organization Level: Meeting customers’ requirements (internal and
external).
■​ Includes benchmarking, customer feedback, and regular
evaluations.
○​ Process Level: Functional units aligning with end-customer needs.
■​ Includes cross-functional processes and optimization efforts.
○​ Individual Level: Standards for personal performance based on
organizational processes.
■​ Involves creating key output standards based on organizational and
process-level requirements.
●​ Quality Paradigms:
○​ Customer-Craft: Products tailored to customer demands.
■​ Example: A custom-built computer for a specific user.
○​ Mass Production and Sorting: Focus on production rate and
customer-defined design.
■​ Example: Factory assembly of consumer electronics.
○​ Statistical Quality Control: Incorporates statistical methods for minimal
waste and rework.
■​ Example: Use of control charts in production lines.
○​ Total Quality Management (TQM): Collaborative quality focus with
statistical methods.
■​ Example: Customer participation in product design.
○​ Techno-Craft: High flexibility for customer-specific designs.
■​ Example: Tailored manufacturing using advanced robotics.
●​ Cost of Quality: (Mnemonic: PAIE - Prevention, Appraisal, Internal, External)
○​ Prevention Costs: Design and maintenance of quality systems.
■​ Example: Employee training programs to reduce defects.
○​ Appraisal Costs: Monitoring for defects.
■​ Example: Quality inspections during manufacturing.
○​ Internal Failure Costs: Addressing defects before customer delivery.
■​ Example: Repairing faulty products in the factory.
○​ External Failure Costs: Addressing defects post-delivery.
■​ Example: Replacing defective goods under warranty.
Week 2: Understanding Quality Management

Learning Objectives:

●​ Discuss Principles of Quality Management.


●​ Enumerate and Discuss the Importance of Quality Management.
●​ Analyze Approaches to Quality Management.

Key Concepts:

●​ What is Quality Management?


1.​ A systematic approach to ensuring products/services meet consistent
standards, satisfy customer requirements, and continuously improve
processes.
●​ Principles of Quality Management (Mnemonic: CLEPPER):
1.​ C: Customer Focus: Exceed customer expectations.
■​ Example: Amazon Prime offers fast delivery and 24/7 customer
service.
2.​ L: Leadership: Inspire teams to achieve quality objectives.
■​ Example: Regular team engagement sessions.
3.​ E: Engagement of People: Empower and involve employees.
■​ Example: Rewarding quality improvement suggestions.
4.​ P: Process Approach: Manage interrelated processes for consistency.
■​ Example: Streamlined supply chain operations.
5.​ I: Improvement: Focus on continuous process enhancements.
■​ Example: Implementing new manufacturing technology.
6.​ E: Evidence-Based Decision Making: Use data-driven decisions.
■​ Example: Analyzing sales metrics before launching a product.
7.​ R: Relationship Management: Foster strong stakeholder relationships.
■​ Example: Regular communication with suppliers.
●​ Importance of Quality Management:
1.​ (Mnemonic: 5c ec-hl)
2.​ (Mnemonic: CHEERFUL Q)
3.​ C: Customer Satisfaction: Ensuring products or services consistently meet
or exceed customer expectations enhances customer satisfaction and
loyalty. Satisfied customers are more likely to return and recommend the
business, supporting long-term success.
4.​ H: Higher Productivity Levels: Employee productivity increases when
quality management eliminates bottlenecks, making processes smoother
and more efficient.
5.​ E: Employee Morale and Engagement: A structured environment and
recognition of employee contributions improve morale, productivity, and
commitment.
6.​ E: Ensuring Compliance and Risk Management: Adhering to standards
and regulatory requirements reduces risks of legal issues, maintaining
credibility and legality.
7.​ R: Reduction in Human Errors: Standardized processes minimize
mistakes, leading to improved productivity and job efficiency.
8.​ F: Fostering Continuous Improvement: Encourages regular review and
refinement of processes, helping businesses adapt to changing conditions
and customer needs.
9.​ U: Uniting Quality and Production: Aligning design, processes, and
customer expectations ensures dependable and durable products,
enhancing reputation.
10.​L: Long-Term Business Success: Quality management builds a foundation
for sustained growth by improving overall operational efficiency.
11.​Q: Quality Products and Services: Producing high-quality goods enhances
competitiveness and drives customer satisfaction and revenue growth.

APPROACHES TO QUALITY MANAGEMENT


1.​ Total Quality Management
2.​ Six Sigma
3.​ Lean Management
4.​ ISO Standards
5.​ Agile Methodolo

TQM

●​ Definition: A comprehensive approach to improving organizational performance,


with a strong emphasis on customer satisfaction. It involves everyone in the
organization and aims for continuous improvement in processes, products, and
services.
●​ Key Features: TQM PRINCIPLES
○​ Customer focus: Identifying and understanding customer needs and
expectations to exceed their satisfaction.
○​ Continuous improvement: Constantly refining and enhancing processes
and procedures to improve efficiency and effectiveness.
○​ Employee involvement: Encouraging and empowering employees to take
ownership of their work and contribute to improving quality.
○​ Process approach: Focusing on the entire process, not just individual
steps, to identify and eliminate potential deficiencies.
○​ Systematic approach: Adopting a structured approach to quality
management, including planning, implementation, assessment, and
improvement.
○​
●​ Example: Toyota’s implementation of Kaizen, a core principle of TQM, which
emphasizes continuous, incremental improvements across all levels of the
company.

2. Six Sigma

●​ Definition: A data-driven methodology used to eliminate defects and improve


processes by identifying and removing the causes of variations. Six Sigma
focuses on achieving near-perfect quality (a defect rate of 3.4 defects per million
opportunities).
●​ Key Features:
○​ Value: Identifying the value customers place on a product or service and
focusing on creating that value.
○​ Value stream: Examining how the product or service is created and
delivered to customers and identifying areas of inefficiency.
○​ Flow: Ensuring the smooth flow of work processes by reducing or
eliminating bottlenecks and delays.
○​ Pull: Utilizing customer demand to drive production and delivery to
minimize waste and avoid overproduction.

○​ s
●​ Example: General Electric (GE) adopted Six Sigma to enhance its manufacturing
processes and improve product quality, leading to significant cost reductions and
improvements in customer satisfaction.

3. Lean Management
●​ Definition: Focuses on creating value by eliminating waste (anything that does
not add value to the product or service). Lean management aims to streamline
processes, reduce waste, and increase efficiency.
●​ Key Features:
○​ Lean Management
Lean management is a process improvement methodology that aims to eliminate
waste and minimize non-value-added activities in a process. It involves identifying the
value stream of a process and optimizing it to improve efficiency and quality.
Lean Management Principles:

▪​ Value: Creating value for the customer is the first priority.

▪​ Waste elimination: Eliminating waste is a key principle of lean management,


and it includes anything that does not add value to the customer.
▪​ Continuous flow: Lean management emphasizes the importance of creating a
smooth and efficient flow of production through the elimination of bottlenecks
and other obstacles.

▪​ Just In Time (JIT): This is another important aspect of lean management, which
involves producing goods or delivering services only when they are needed by
customers.
▪​

○​
●​ Example: Companies like Toyota and Ford use lean principles to streamline
their production processes, reduce costs, and improve overall efficiency.

4. ISO Standards

●​ Definition: International standards that provide guidelines for various aspects of


quality management. The most common standard is ISO 9001, which specifies
criteria for a quality management system.
●​ Key Features:
○​ Focus on process and quality management standards
○​ Certification process to ensure adherence to quality standards
○​ Customer satisfaction is a central focus
●​ Example: Many companies, such as Samsung and Nestlé, obtain ISO
certification to demonstrate their commitment to quality and to gain a competitive
advantage in the marketplace.
5. Agile Methodology

●​ Definition: Primarily used in software development, agile methodology focuses


on iterative development, flexibility, and customer collaboration. It emphasizes
delivering small, functional pieces of the product frequently and allowing for
feedback-based improvements.
●​ Key Features:
○​ Iterative approach with short cycles (sprints)
○​ Collaboration with customers and stakeholders
○​ Responding to changes in requirements even late in development
○​ Continuous delivery and improvement
●​ Example: Software development companies like Spotify and Microsoft use
Agile methodology to quickly adapt to customer feedback and deliver updates
efficiently.

Here's how Agile can be applied to quality management:

▪​ Continuous Improvement: Agile promotes continuous improvement through


regular inspection and adaptation.

▪​ Collaboration and Communication: Agile emphasizes collaboration among team


members, stakeholders, and customers.

▪​ Quality as a Team Responsibility: In Agile, quality is everyone's responsibility, not


just a dedicated QA team.

▪​ Continuous Integration and Testing: Agile methodologies emphasize frequent


integration of code changes and regular testing.

Week 3: Defining Total Quality Management (TQM)

Learning Objectives:

●​ Discuss the Primary Elements, Core Concepts, and Benefits of TQM.


●​ Distinguish between Traditional Management and TQM.
●​ Compare and Contrast Reengineering and TQM.

Key Concepts:
●​ Primary Elements of TQM (Mnemonic: FBR-T - Foundation, Bricks,
Recognition, Trust):
○​ Foundation: Built on Ethics, Integrity, and Trust.
○​ Building Bricks: Leadership, Teamwork, and Training.
○​ Recognition: Encourages satisfaction and productivity.
○​ Trust: Continuous improvement through communication.
●​ Core Concepts of TQM (Mnemonic: SCIPMP):
○​ S: Customer Satisfaction: Focused on internal and external customer
needs.
○​ C: Continuous Improvement: Iterative progress fosters innovation.
○​ I: Measurement: Performance measurement drives improvement.
○​ P: Prevention: Aim for defect-free results with zero defects policy.
○​ M: People Make Quality: Create an environment for quality-focused work.
○​ P: Synergy in Teamwork: Collaboration amplifies results.
●​ Benefits of TQM: (Mnemonic: CCBB - Culture, Customers, Business, Better
Employees)
○​ C: Creates a Good Corporate Culture: Customer-centric philosophy.
○​ C: Better Reviews from Customers: Enhances loyalty and reputation.
○​ B: Better Employee Performance: Training boosts morale and efficiency.
○​ B: Business Process Improvement: Drives operational efficiency.
●​ Comparison:
○​ TQM vs. Traditional Management:
■​ TQM: Emphasizes collaboration, incremental improvements, and
process quality. Example: Toyota uses Kaizen methodology,
encouraging employees to suggest process improvements and
collaborate to ensure high product quality.
■​ Traditional: Focuses on results, often ignoring the quality of
processes. Example: A factory prioritizing production targets over
quality checks, leading to high output but more defects.
○​ TQM vs. Reengineering:
■​ TQM: Continuous, incremental improvements. Example: A
company like Toyota uses TQM principles to continuously enhance
production efficiency through Kaizen (continuous improvement)
while maintaining consistent product quality.
■​ Reengineering: Radical redesign for significant change. Example:
Ford Motors implemented reengineering by replacing its outdated
procurement process with an integrated electronic data system,
reducing costs and improving supplier relationships.
Week 4: Strategic Dimensions of Quality: Total Quality Management (TQM)

Learning Objectives:

●​ Identify the Eight (8) Dimensions of Product Quality.


●​ Name the Five (5) Dimensions of Service Quality.
●​ Differentiate the Dimensions of Product and Service Quality.

Key Concepts:

●​ Quality is Multi-Dimensional:
○​ Definition: Product and service quality comprise several dimensions
determining how customer requirements are met.
○​ Evaluating all dimensions helps assess how well services or products fulfill
customer needs.
●​ Dimensions of Product Quality (Mnemonic: PFRCDSAP):
○​ P: Performance - Primary operating characteristics of a product.
■​ Example: Smartphone speed or display clarity.
○​ F: Features - Added characteristics enhancing a product’s appeal.
■​ Example: A smartwatch’s heart rate monitoring feature.
○​ R: Reliability - Likelihood of a product functioning without failure.
■​ Example: A car with a 5-year warranty.
○​ C: Conformance - Degree to which a product meets established quality
standards.
■​ Example: Pharmaceutical products meeting FDA specifications.
○​ D: Durability - Measure of product life.
■​ Example: Durable appliances lasting over a decade.
○​ S: Serviceability - Ease of service or repair.
■​ Example: Quick and efficient laptop repairs under warranty.
○​ A: Aesthetics - How a product looks, feels, sounds, tastes, or smells.
■​ Example: Premium design of luxury watches.
○​ P: Perceived Quality - Customer perception influenced by brand
reputation.
■​ Example: Apple products perceived as high-quality due to their
reputation.
●​ Dimensions of Service Quality (Mnemonic: TREAS):
○​ T: Tangibles - Physical appearance of facilities, equipment, and personnel.
■​ Example: Clean and professional-looking hotel staff uniforms.
○​ R: Reliability - Ability to deliver promised services dependably and
accurately.
■​ Example: A courier service delivering packages on time.
○​ E: Empathy - Caring, personalized attention to customers.
■​ Example: Nurses addressing patients’ specific concerns
compassionately.
○​ A: Assurance - Knowledge and courtesy of employees to inspire trust.
■​ Example: Certified mechanics providing car maintenance.
○​ S: Responsiveness - Willingness to assist customers and provide prompt
service.
■​ Example: Restaurant staff quickly addressing customer complaints.
●​ Service Quality Gap:
○​ Definition: The difference between customers’ expectations and actual
delivery of services.
○​ Organizations conduct surveys and research to identify gaps and improve
service delivery.

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