THE UNIVERSITY OF NAIROBI

COLLEGE OF EDUCATION AND EXTERNAL STUDIES

SCHOOL OF CONTINUING AND DISTANCE EDUCATION

DEPARTMENT OF EXTRA-MURAL STUDIES

COURSE CODE: LDP 607

COURSE UNIT: PROJECT TOTAL QUALITY MANAGEMENT

LECTURER: DR. LILIAN OTIENO

PRESENTED BY: GROUP 2

REGISTRATION NAME
L50/5620/2017 ESTHER NDUTA WANGECHI
L50/5551/2017 GEORGE G. RUHENI
L50/5758/2017 MAUREEN MURUGI IKONYA
L50/5751/2017 CATHERINE WAITHERA KAMAU
L50/5535/2017 KIRIOBA JUNE BITENGO
L50/5697/2017 IRENE MASITSA MULUNDA
L50/5699/2017 REGINA WANGARE
L50/5645/2017 STEPHANIE SWAN
L50/5856/2017 FELISTAS BONARERI
L50/5736/2017 MUROKI SEBASTIAN
L50/86007/2016 SHARON KILANDE MUNOKO

TOPIC 2 PHILOSOPHY OF TQM

ASSIGNMENT PAPER SUBMITTED IN PARTIAL FULFILLMENT OF THE
REQUIREMENT FOR THE AWARD OF DEGREE OF MASTERS OF ARTS IN
PROJECT PLANNING AND MANAGEMENT
JUNE 2017
 Table of Contents
Introduction ..................................................................................................................................... 4
Evolution of TQM........................................................................................................................... 4
Principles of Total Quality .......................................................................................................... 6
Concepts by TQM Gurus ................................................................................................................ 7
Walter Shewhart 1891-1967........................................................................................................ 7
Dr. Edward Deming .................................................................................................................... 7
Statistical Process Control (SPC) ............................................................................................ 7
Requirements for Successful Application of SPC ................................................................... 8
Demings Fourteen Points of Quality ...................................................................................... 8
PDCA/SAP: Plan Do Check Act or Study Act to correct ........................................................... 9
Shigeo Shingo 1909-1990 ......................................................................................................... 10
John S. Oakland......................................................................................................................... 11
Kaoro Ishikawa 1915-1989 ....................................................................................................... 12
Philip Crosby ............................................................................................................................. 13
Genechi Taguchii (Major contributions) ................................................................................... 15
Joseph Juran .............................................................................................................................. 15
Quality Planning .................................................................................................................... 16
Quality Control Process ......................................................................................................... 16
Quality Improvement Process ............................................................................................... 16
Pareto Analysis .......................................................................................................................... 17
Feigenbaum (1922-2014) .......................................................................................................... 18
David Garvin ............................................................................................................................. 19
Competing on Quality ........................................................................................................... 25
Strategic Errors ...................................................................................................................... 26
Importance of TQM Philosophy ................................................................................................... 27
The Importance of Quality Management Systems for Small Businesses ................................. 27
REFERENCES ............................................................................................................................. 29

Appendices
Appendix I: Managing Quality ..................................................................................................... 30
Appendix II: The twelve TQM factors ......................................................................................... 31
Appendix III: Important events in the development of TQM ....................................................... 32
Appendix IV: Evolution of Total Quality Management: TQM Timeline and History of TQM ... 34
 Philosophy of TQM
Introduction

This paper will trace the origins and development of Total Quality Management concept,
describe the characteristics of the evolutionary stages of TQM and detail the steps to be followed
by an organization adopting TQM. All the gurus and significant figures who have championed
the TQM philosophy will also be identified and their thoughts discussed. Feigenbaum and
Ishikawa are perhaps the greatest contributors to the term. The other recognized TQM gurus such
as David Garvin, Crosby, Shingo, Taguchii, Deming and Juran have shaped the dimensions,
practices and mechanisms which underpin the concept.

Evolution of TQM

Besterfield, et al (2002) sees total quality management as the art of managing the whole to
achieve excellence. The whole implies a set of practices that emphasize continuous improvement,
meeting customer requirements, reducing rework, long-range thinking, increasing employee
involvement and teamwork, process redesign, competitive benchmarking, team-based problem
solving, continuous measurement of results and closer relationships with suppliers (Powell, 1995,
p.16). Total Quality Management evolved over four major stages:
Quality Inspection
Quality management started with simple inspection-based systems. Under such a system,
one or more characteristics of a product are examined, measured or tested and compared with
specified requirements to assess its conformity (Kanji and Asher, 1993). This stage also known as
customer- craft was characterized by low production, skilled craftsmen and informal inspection
which informed the decision to reject or accept a product. Later, population growth and
industrialization brought about production in larger volumes. Consequently, there was adoption of
the factory system that brought about the following complexities: increased specialization, division
of labor, and a need for formal inspection due to mass production. Inspectors examined products
to detect flaws and separate the good from the bad. They used gauges to catch deviant parts and
make sure parts fit together at final assembly. The gauging system made inspections more
consistent than those conducted solely by eye, and gave inspection a new respectability.
Quality Control Stage
 Under a system of quality control, product testing and documentation control became the
ways to ensure greater process control and reduced non-conformance. Typical characteristics of
such systems were performance-data collection, feedback to earlier stages in the process, and self-
inspection. While screening inspection was again the main mechanism for preventing products
which were outside the specification from being shipped to customers, quality control measures
led to greater process control and a lower incidence of non-conformance. In 1931, Walter A.
Shewhart gave quality a scientific footing with the publication of his book Economic Control of
Quality of Manufactured Product. Shewhart offered a pragmatic concept of quality: The measure
of quality is a quantity which may take on different numerical values. In other words, the measure
of quality, no matter what the definition of quality may be, is a variable. Shewharts emphasis on
measurement in his definition of quality obviously relates to his prescriptions for statistical quality
control, which requires numbers.

Quality Assurance

The quality assurance stage came with the change away from product quality towards
system quality. In this stage, an organization sets up a system for controlling what is being done
and the system is audited to ensure that it is adequate both in design and use. A major part of this
change is the use of both second-party and third-party audits to assess the efficiency of the system.
The major characteristics of this stage are the use of quality manuals, procedures, work
instructions, quality planning, quality audits among others.

Shewarts work was later developed by Deming and the early work of Shewhart, Deming,
Dodge and Romig constitutes much of what today comprises the theory of statistical process
control (SPC). However, there was little use of these techniques in manufacturing companies until
the late 1940s. At that time, Japans industrial system was virtually destroyed, and it had a
reputation for cheap imitation products and an illiterate workforce. The Japanese recognized these
problems and set about solving them with the help of some notable quality gurus Juran, Deming
and Feigenbaum. In the early 1950s, quality management practices developed rapidly in Japanese
plants, and become a major theme in Japanese management philosophy, such that, by 1960, quality
control and management had become a national preoccupation. By the late 1960s/early 1970s
Japans imports into the USA and Europe increased significantly, due to its cheaper, higher quality
products, compared to the Western counterparts.
Total Quality Management Stage
Total quality management stage is the highest level, involving the application of quality
management principles to all aspects of the business. Total quality management requires that the
principles of quality management be applied in every branch and at every level in an organization
(Boaden, 1997). Typical of an organization going through a total quality process would be a clear
and unambiguous vision, few interdepartmental barriers, time spent on training, excellent supplier
and customer relations and the realization that quality is not just product quality but also the quality
of the whole organization, including sales, finance, personnel and other non-manufacturing
functions.
TQM integrates management and practices that lay emphasis on continuous improvement,
meeting customer requirements, reducing waste, increased employee involvement and teamwork,
process redesign, competitive benchmarking, team-based problem-solving, constant measurement
of results, and better relationships with suppliers, (Ross, 1993).
Principles of Total Quality

Total quality is based on three fundamental principles and five others:

1. A focus on customers and stakeholders.
2. Participation and teamwork by everyone in the organization.
3. A process focus supported by continuous improvement and learning
4. Leadership
5. Factual approach to decision making
6. Mutually beneficial supplier relationship
7. Process approach
8. Systemic approach to management

Appendix I, II, III and IV, give a summary and aerial view of evolution of TQM pointing out the
most significant occurrences of the process.
 Concepts by TQM Gurus
Walter Shewhart 1891-1967
He is known as the grandfather and a giant of TQM during the first half of the 20th C. He
believed that lack of information greatly hampered the efforts of control and management
processes in a production environment. Dr. Shewhart developed Statistical Process Control
methods to aid a manager in making scientific, efficient, economical decisions. In addition, he
developed the Shewhart Cycle Learning and Improvement Cycle, combining both creative
management thinking with statistical analysis. The four steps in this Cycle are: plan, do, study
and act. Shewhart believed these steps ultimately leads to total quality improvement. Shewharts
principle was that bringing a process into a state of statistical control would allow the distinction
between assignable and chance cause variations. Therefore, by keeping the process in control, it
would be possible to predict future output and to economically manage processes.

Dr. Edward Deming

Deming is associated with statistical process control and other problem-solving methods
discussed below which aim to improve processes and reduce the inevitable variation which occurs
from common causes and special causes in production. Common causes of variations are
systemic and are shared by many operators, machines or products. 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 stresses the responsibilities of top
management to take the lead in changing processes and systems. Top management is responsible
for most quality problems. Management should give employees clear standards for what is
considered acceptable work, and provide the methods to achieve it. His focus is on five issues:
1. Statistical process controlling (SPC)
2. Deming philosophy
3. Deming 14 points
4. Deming Cycle (for continuous improvements)
5. Deadly diseases of quality

Statistical Process Control (SPC)

The key tool used in SPC is a Control Chart. Control charts monitor the processes to show
how they are performing, and the effect of the capabilities the processes. The information is then
used to make quality improvements. It is concerned with controlling the process which makes the
product, through inspecting the machine rather than the product itself.
Steps Involved in Statistical Control Process:
1. Identification and data Gathering
2. Prioritizing
3. Analysis of identified problem
4. Data Gathering and Graphing (The tools used at this step include: check sheet, histogram,
probability plot and control chart.)
Why Use SPC
Today, factors such as cost of raw materials and increasing competition are not easy to
control. In order to improve the productivity of their manufacturing, companies have aimed to
focus on the factors which they can control: their processes. To maintain continuous improvement,
companies are moving from detection based quality control measures to prevention based control
measures.SPC helps to monitor the performance of the processes in real time thus assisting the
operator to detect trends and changes in processed before they result in scrap.

Requirements for Successful Application of SPC

Support from Top Management. The management is required to provide total support to
the use of the technique in the organization. This is inclusive of commitment through provision of
necessary resources for training and education and subsequently following up on the trainings from
time to time to assess their effectiveness.
Engineering Skills. This involves understanding the key benefits from introduction and
application of SPC, measurement system analysis (stability, capability linearity), process
prioritization, understanding key characteristics or process parameters to measure and how to
measure them.
Statistical Skill. Statistical stability calculation of control limits, interpretation of control
limits, selection of control charts, determination of sample size and group-size
Team Work Skills. The entire company should be able to understand the benefits of SPC
and hence provide cooperation at all levels of the organization. The employees can be involved in
brainstorming on what needs to be measured in a production process.

Demings Fourteen Points of Quality

1) Create constancy of purpose towards improvement of product and service.
 2) Adopt the new philosophy. We can no longer live with commonly accepted levels of delay,
mistakes and defective workmanship.
3) Cease dependence on mass inspection. Instead, require statistical evidence that quality is
built in.
4) End the practice of awarding business on the basis of price.
5) Find problems. It is managements job to work continually on the system.
6) Institute modern methods of training on the job.
7) Institute modern methods of supervision of production workers. The responsibility of
foremen must be changed from numbers to quality.
8) Drive out fear, so that everyone may work effectively for the company.
9) Break down barriers between departments.
10) Eliminate numerical goals, posters and slogans for the workforce asking for new levels of
productivity without providing methods.
11) Eliminate work standards that prescribe numerical quotas.
12) Remove barriers that stand between the hourly worker and their right to pride of
workmanship.
13) Institute a vigorous program of education and retraining.
14) Create a structure in top management that will push on the above points every day.
In addition to Toyota, Demings principles have contributed to the global success of Proctor &
Gamble, Ritz Carlton, Harley-Davidson and other well-known organizations.
PDCA/SAP: Plan Do Check Act or Study Act to correct

When managing projects, the first step highly determines success of the project. In this
case, the first stage involves planning. In this step, various activities are involved. Firstly, the
management should identify the problem to be solved. In identifying the problem, it allows the
technical team to better understand the situation (Lodgaard & Aasland, 2011). Then the problem
is analyzed by the team involved in the project. Analyzing the problem plays a crucial role in
success of the project.
Doing is the next step that follows planning. In this step, there are two steps involved that
is development and testing of the potential solutions (Ren, Ling, Wei & Fan, 2015). In failing
projects, development of solutions is mainly overlooked that leads to most engineers and
technicians overlooking the process. Development a project involves different levels of
management and expertise. All the members involved in the project should be allowed equal
participation. The participation can be achieved through brainstorming of possible solutions.
Any successful project of an organization needs frequent checking to ensure it is working
to expectations. The step is also at times referred to as the study phase. Management of the
organization takes the opportunity of studying the working of the project. The process helps in
better understanding of the project and how it works. Working of the project should be in line with
the goals and objectives. The set goals and objectives dictate whether the project is moving in the
right direction. In identifying any areas that needs improvement, the necessary changes are made
(Ren, Ling, Wei, & Fan, 2015).
Acting is the final step in applying PDCA to a project. The step involves implementation
of the solution to the project. In implementing the solution, the project manager should affirm that
the supplier meets all requirements of the project. It should also ensure that the organization is
satisfied with performance of the supplier in delivering the raw materials. The solution should also
satisfy that the amount of money spent on the solution is worth. Conclusively, management of the
project should constantly look for ways of improving the process.
Shigeo Shingo 1909-1990

Shingos contributions includes Poka yoke, SMED (Single minute exchange die),and Just
in time production. The term Poka yoke is derived from a Japanese word meaning mistake
proofing. The concept aims to design manufacturing processes so that mistakes can be detected
and corrected immediately. This includes stopping processes as soon as defects happen, identifying
the source of the defect and preventing the defect from re-occurring in order to prevent errors in
the workplace (Shing, 1986).

The American production and inventory control society (APICS) defines the Just In Time
production as a philosophy of manufacturing based on planned elimination of all waste and
continuous improvement of productivity. It involves the successful execution of all manufacturing
activities required to produce a final product, from design engineering to delivery and including
all stages of conversion from raw material onward. The Just in Time production concept was
formed by the contribution of Dr Shigo alongside Mr.Taichii Ohno of Toyota Motor Co. from
1949 to 1975. Traditional manufacturing was more inclined to large batch production as this gave
economies of scale inventories of raw materials and finished goods.
 As a part of the JIT, Dr Shigeo Shigo developed the SMED in order to reduce the fixed
cost associated with the setup and changeover of dies. The basic elements driving the SMED
concept are to reduce the setup time of dies, which directly result in smaller batch sizes for parts.
A smaller batch size translates as lower costs associated with work in process inventory storage.

John S. Oakland

John Oakland is a British intellectual on the field of Total Quality management. His
writings, he sets the importance of quality as a fundamental feature in organizational
management. He postulated the five aspects of Total Quality Management (Oakland, 2003). These
are:

i) Leadership

It involves senior leaders developing and facilitating the achievement of the mission and vision,
develop values required for long-term success and implement these via appropriate actions and
behaviors, and are personally involved in ensuring that the organizations management system is
developed and implemented.

ii) Policy and strategy

This is how the organization implements its mission and vision via a clear stakeholder-
focused strategy, supported by relevant policies, plans, objectives, targets and processes.
iii) People

This aspect involves the manner in which the organization manages, develops and releases
the knowledge and full potential of its people at an individual, team-based and organization-wide
level, and plans these activities in order to support its policy strategy and the effective operation
of its processes.
iv) Partnerships and resources
This involves how the organization plans and manages its external partnerships and internal
resources in order to support its policy and strategy and the effective operation of its processes.
v) Processes
This level involves the way organization designs, manages and improves its processes in
order to support its policy strategy and fully satisfy, and generate increasing value, for its
customers and stakeholders. By so doing you are able to achieve processes that are systematically
designed and managed; and, processes that are improved, as needed, using innovation in order to
fully satisfy.
In order to assess performance excellence there is need to put into consideration the
environment in which an organization operates in. The indicators are the organizations actual
performance, the organizations own targets; and wherever possible: the performance of
competitors or similar organizations; and, the performance of best in class organizations.
Kaoro Ishikawa 1915-1989

Ishikawa is best known for his quality control tool Fish Bone or Cause effect Diagram, his
contribution in the dissemination of quality control concept and for his role in democratizing
quality in the Total Quality Control philosophy (Kaoru, 1985). The Fishbone Diagram is a problem
solving tool named so because it resembles a fish and was used to improve the performance of
teams in determining potential root causes of their quality problems.

Defect XXX

Shows possible cause (process inputs) for a given effect (process outputs)-Defect XXX in this case

The Cause effect diagram has since then been used in root cause analysis and problem solving.

Ishikawa introduced the concept of Company Wide Total Control which was later referred to as
Total Quality Control in 1962. He originated the Quality Control Circle in Japanese industries
which involved workers voluntary participation in quality matters. Ishikawa took the quality
movement to the operating level people with his Quality Control Circle where the participation is
voluntary. According to him TQC or Company Wide Quality Control (CWQC) is: Quality control
consists of developing, designing, producing, marketing, and servicing products and services with
optimum cost-effectiveness and usefulness, which customers will purchase with satisfaction. To
achieve these aims, all the separate parts of a company must work together (Ishikawa, 1990).

His contribution in dissemination of the TQ philosophy is marked by how he developed

and delivered the first basic quality control course for the Union of Japanese Scientists and
Engineers (JUSE) in 1949.He offered the Union of Japanese Scientists and Engineers to hold
diverse seminars on quality control. He realized the seminars, and moreover he served as a
chairman of the most of Quality Control seminars, as a member of the administration, or as a
lecturer. He showed his ability to build the TQC philosophy and its realization. Professor Ishikawa
taught courses on quality control for the Chemical Society of Japan, Nihon Shortwave
Broadcasting, NHK Radio, and NHK Educational TV. Furthermore, in the process of realizing
TQC, Professor Ishikawa proposed the formation of QC Circle (discussed above) in order to
educate the workers of the front line. His six principles formed the Japanese quality paradigm and
helped redefine the way Japan perceived manufacturing.

1. All employees should clearly understand the objectives and business reasons behind the
introduction and promotion of companywide quality control.
2. The features of the quality system should be clarified at all levels of the organization and
communicated in such a way that the people have confidence in these features.
3. The continuous improvement cycle should be continuously applied throughout the whole
company for at least three to five years to develop standardized work. Both statistical
quality control and process analysis should be used, and upstream control for suppliers
should be developed and effectively applied.
4. The company should define a long-term quality plan and carry it out systematically.
5. The walls between departments or functions should be broken down, and cross functional
management should be applied.
6. Everyone should act with confidence, believing his or her work will bear fruit.

Ishikawa blended these ideas and principles into a system of quality thinking that defined
a holistic way to achieve the improvement of business performance. He proposed a pursuit of
quality that can be best described as integrated quality.

Philip Crosby

As regards quality management, he came up with 14 steps which include:

Step 1: Establish management commitment

Step 2: Form quality improvement teams

Step 3: Establish quality measurements

Step 4: Evaluate the cost of quality

Step 5: Raise quality awareness

Step 6: Take action to correct problems

Step 7: Zero defects planning

Step 8: Train supervisors and managers

Step 9: Hold a zero defects day to establish Hold a zero defects day to establish the attitude and
expectation within the company

Step 10: Encourage the setting of goals for improvement

Step 11: Obstacle reporting

Step 12: Recognition for contributors

Step 13: Establish Quality councils

Step 14: Do it all over again

According to Phillip B. Crosby, there are three types of quality costs:

a) Prevention Costs {Prevention costs make the elements of the cost of quality. They fall
under the necessary costs. Prevention costs are the costs of any action intended to make
sure in advance, that things will not go wrong (Zaklouta, 2011)}.
b) Appraisal Costs (These costs also make for elements of the cost of quality. They lie in both
the necessary and avoidable cost category. The necessary cost because they are important
in planning of the future in quality and also in avoidable because if they are also carried
out in cases after a mistake has occurred).
c) Failure costs (The costs you incur when a customer is or will be dissatisfied and you have
to pay the price which include; damaged reputation, rework, waste, legal penalties, special
charges and loss of pride).
Genechi Taguchii (Major contributions)

The Loss Function. Taguchi devised an equation to quantify the decline of a customer's
perceived value of a product as its quality declines. Essentially, it tells managers how much
revenue they are losing because of variability in their production process.

Orthogonal Arrays and Linear Graphs. When evaluating a production process analysis
will undoubtedly identify outside factors or noise which cause deviations from the mean. Isolating
these factors to determine their individual effects can be a very costly and time consuming process.
Robustness. Some noise factors can be identified, isolated and even eliminated but others cannot.
For instance it is too difficult to predict and prepare for any possible weather condition. Taguchi
therefore referred to the ability of a process or product to work as intended regardless of
uncontrollable outside influences as robustness.

Taguchis methodology is geared towards pushing the concepts of quality and reliability
back into the design stage, i.e. prior to manufacturing. His method provides an efficient technique
for designing product tests prior to beginning manufacturing. Taguchi methodology is
fundamentally a prototyping technique that enables engineers/ designers to produce a robust design
which can survive repetitive manufacturing in order to deliver the functionality required by the
customer.
Joseph Juran

Juran, like Deming, was invited to Japan in 1954 by the Union of Japanese Scientists and
Engineers (JUSE). His lectures introduced the management dimensions of planning, organizing,
and controlling and focused on the responsibility of management to achieve quality and the need
for setting goals. Juran developed the quality trilogy-- quality planning, quality control and quality
improvement. These three processes of the Juran trilogy are interrelated. To attain quality, it is
well to begin by establishing the vision for the organization, along with policies and goals.
Conversion of goals into results (making quality happen) is then done through managerial
processessequences of activities that produce the intended results. Managing for quality makes
extensive use of three such managerial processes:
Quality Planning
In an attempt to realize quality planning, Juran devised the following steps are followed;
STEP 1: Establish the project:
STEP 2: Identify the customers
STEP 3: Discover the customer needs
STEP 4: Develop the product
STEP 5: Develop the process
STEP 6: Develop the controls and transfer to operations

Quality Control Process

Quality control is a universal managerial process for conducting operations so as to

provide stability to prevent adverse change and to maintain the status quo. To maintain
stability, the quality control process evaluates actual performance, compares actual performance
to goals, and takes action on the difference. What is necessary here is not more control but
improvementactions to change the level of performance. After the improvements have been
made, a new level of performance has been achieved. Now it is important to establish new
controls at this level to prevent the performance level from deteriorating to the previous level or
even worse.

Quality Improvement Process

The nature of quality improvement and its relation to managing for quality, show how to
establish quality improvement as a continuing process that goes on year after year, and define the
action plan and the roles to be played, including those of upper management. As used here,
improvement means the organized creation of beneficial change; the attainment of
unprecedented levels of performance.

Jurans 10 Points for Quality Improvement:

1. Build Awareness of Need and Opportunity for Improvement

2. Set Goals for Improvement

3. Organize to Reach your Goals

4. Provide Training

5. Carry Out Projects to Solve Problems

6. Report Progress

7. Give Recognition

8. Communicate Results

9. Keep Score

10. Maintain Momentum by Making Annual Improvement a Part of the Regular

Pareto Analysis

Pareto Analysis is statistical technique commonly known as 80/20 Rule that is used to select
a limited number of tasks that are able to produce a larger proportion of overall effect. This
technique was developed by an Italian sociologist and economist Wilfredo Pareto (1848-1923.
Using this concept, Joseph Juran, did an observation in a factory between 24th December 1904 and
28th February 1908 and concluded that 80 percent of rejections are caused by 20 percent of defect
types. The following are steps used to develop Pareto diagrams:

i. Define the purpose of using the diagram and the type of category to use. For example,
by problem type or non-conformity.
ii. Identify the most appropriate measurement or parameter. For example, in terms of the
frequency of occurrence or value of the cost.
iii. If necessary group categories into workable amounts. A further breakdown of each
category can be carried out at a later stage.
iv. List each category with its associated data count. Sort the categories in descending
order placing the one with the largest count first.
v. Compute the cumulative frequency of the data categories in descending order.
vi. Plot a bar graph. Identify few cases that require immediate action.

EXAMPLE: PARETO ANALYSIS

Feigenbaum (1922-2014)

He was a general electric quality control engineer and he proposed the theory of Total quality
control. Feigenbaum defines quality control as an effective system for coordinating the quality
maintenance and quality improvement efforts of the various groups in an organization so as to
enable production at the most economical levels which allow for full customer satisfaction.
According to Feigenbaum (1983) quality is not about giving the best products to the customer but
what is more important as a tool is control which focuses on: devising clear and achievable quality
standards, enhancing existing working condition to reach the desired quality standard and setting
new quality standard with an aim of further improvement.

He proposes elements of total quality to enable a totally customer focus (internal and
external) as the following:

Quality is the customers perception of what quality is, not what a company thinks it is
Quality and cost are the same not different
Quality is an individual and team commitment
 Quality and innovation are interrelated and mutually beneficial
Managing Quality is managing the business
Quality is a principal
Quality is not a temporary or quick fix but a continuous process of improvement
Productivity gained by cost effective demonstrably beneficial Quality investment
Implement Quality by encompassing suppliers and customers in the system

David Garvin

According to Garvin, to achieve quality gains, managers need a new way of thinking, a
conceptual bridge to the consumers vantage point. Obviously, market studies acquire a new
importance in this context, as does a careful review of competitors products. One thing is certain:
high quality means pleasing consumers, not just protecting them from annoyances. Product
designers, in turn, should shift their attention from prices at the time of purchase to life cycle costs
that include expenditures on service and maintenancethe customers total costs (Garvin, 1998).
Even consumer complaints play a new role because they provide a valuable source of product
information. However, managers have to take a more preliminary stepa crucial one, however
obvious it may appear. They must first develop a clear vocabulary with which to discuss quality
as strategy. They must break down the word quality into manageable parts. Only then can they
define the quality niches in which to compete.

Consequently, he proposed 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. Some of these are always mutually reinforcing;
some are not. A product or service can rank high on one dimension of quality and low on another
indeed, an improvement in one may be achieved only at the expense of another. It is precisely this
interplay that makes strategic quality management possible; the challenge to managers is to
compete on selected dimensions.

1. Performance

Generally, performance refers to a products primary operating characteristics. For an

automobile, performance would include traits like acceleration, handling, cruising speed, and
comfort; for a television set, performance means sound and picture clarity, color, and the ability
to receive distant stations. In service businessessay, fast food and airlinesperformance often
means prompt service. 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 consumer needs. A power shovel with a capacity of 100 cubic yards per hour will
outperform one with a capacity of 10 cubic yards per hour. Suppose, however, that the two
shovels possessed the identical capacity60 cubic yards per hourbut achieved it differently:
one with a 1-cubic-yard bucket operating at 60 cycles per hour, the other with a 2-cubic-yard
bucket operating at 30 cycles per hour. The capacities of the shovels would then be the same, but
the shovel with the larger bucket could handle massive boulders while the shovel with the smaller
bucket could perform precision work. The superior performer depends entirely on the task.

2. Features

Features are the bells and whistles of products and services, those characteristics that
supplement their basic functioning. Examples include free drinks on a plane, permanent-press
cycles on a washing machine, and automatic tuners on a color television set. To many customers,
of course, superior quality is less a reflection of the availability of particular features than of the
total number of options available. Often, choice is quality: buyers may wish to customize or
personalize their purchases. For instance, Fidelity Investments and other mutual fund operators
have pursued this more flexible approach. By offering their clients a wide range of funds
covering such diverse fields as health care, technology, and energyand by then encouraging
clients to shift savings among thesethey have virtually tailored investment portfolios.

3. Reliability

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
and services that are consumed instantly. Reliability becomes more important to consumers as
downtime and maintenance become more expensive. Farmers, for example, are especially
sensitive to downtime during the short harvest season. Reliable equipment can mean the difference
between a good year and spoiled crops. But consumers in other markets are more attuned than ever
to product reliability too. Computers and copying machines certainly compete on this basis.
4. Conformance

A related dimension of quality is conformance, or the degree to which a products design

and operating characteristics meet established standards. This dimension owes the most to the
traditional approaches to quality pioneered by experts like Juran. All products and services involve
specifications of some sort. When new designs or models are developed, dimensions are set for
parts and purity standards for materials. These specifications are normally expressed as a target or
center; deviance from the center is permitted within a specified range.

One drawback of this approach is the problem of tolerance stack-up: when two or more
parts are to be fit together, the size of their tolerances often determines how well they will match.
To address this problem, a more imaginative approach to conformance has emerged which is
closely associated with Japanese manufacturers and the work of Genichi Taguchi. Taguchi begins
with the idea of loss function, a measure of losses from the time a product is shipped. (These
losses include warranty costs, nonrepeating customers, and other problems resulting from
performance failure). Taguchi then compares such losses to two alternative approaches to quality:
on the one hand, simple conformance to specifications, and on the other, a measure of the degree
to which parts or products diverge from the ideal target or center.

He demonstrates that tolerance stack-up will be worsemore costlywhen the

dimensions of parts are more distant from the center than when they cluster around it, even if some
parts fall outside the tolerance band entirely. According to Taguchis approach, production process
1 in the Exhibit is better even though some items fall beyond specification limits. Traditional
approaches favor production process 2. The challenge for quality managers is obvious.
 Incidentally, the two most common measures of failure in conformancefor Taguchi and
everyone elseare defect rates in the factory and, once a product is in the hands of the customer,
the incidence of service calls. But these measures neglect other deviations from standard, like
misspelled labels or shoddy construction, that do not lead to service or repair. In service businesses,
measures of conformance normally focus on accuracy and timeliness and include counts of
processing errors, unanticipated delays, and other frequent mistakes.

5. Durability

Technically, durability can be defined as the amount of use one gets from a product before
it deteriorates (Roger, 1982). After so many hours of use, the filament of a light bulb burns up and
the bulb must be replaced. Repair is impossible. Economists call such products one-hoss shays.
In other cases, consumers must weigh the expected cost, in both dollars and personal
inconvenience, of future repairs against the investment and operating expenses of a newer, more
reliable model. Durability, then, may be defined as the amount of use one gets from a product
before it breaks down and replacement is preferable to continued repair.

This approach to durability has two important implications. First, it suggests that durability
and reliability are closely linked. A product that often fails is likely to be scrapped earlier than one
that is more reliable; repair costs will be correspondingly higher and the purchase of a competitive
brand will look that much more desirable. Because of this linkage, companies sometimes try to
reassure customers by offering lifetime guarantees on their products, as 3M has done with its
videocassettes. Second, this approach implies that durability figures should be interpreted with
care. An increase in product life may not be the result of technical improvements or the use of
longer-lived materials. Rather, the underlying economic environment simply may have changed.

6. Serviceability

A sixth dimension of quality is serviceability, or the 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 companys complaint-handling procedures are also likely to affect
customers ultimate evaluation of product and service quality.

Some of these variables reflect differing personal standards of acceptable service. Others
can be measured quite objectively. Responsiveness is typically measured by the mean time to
repair, while technical competence is reflected in the incidence of multiple service calls required
to correct a particular problem. Because most consumers equate rapid repair and reduced
downtime with higher quality, these elements of serviceability are less subject to personal
interpretation than are those involving evaluations of courtesy or standards of professional
behavior.

Even reactions to downtime, however, can be quite complex. In certain environments, rapid
response becomes critical only after certain thresholds have been reached. During harvest season,
farmers generally accept downtime of one to six hours on harvesting equipment, such as combines,
with little resistance. As downtime increases, they become anxious; beyond eight hours of
downtime they become frantic and frequently go to great lengths to continue harvesting even if it
means purchasing or leasing additional equipment. In markets like this, superior service can be a
powerful selling tool. Caterpillar guarantees delivery of repair parts anywhere in the world within
48 hours; a competitor offers the free loan of farm equipment during critical periods should its
customers machines break down.

Customers may remain dissatisfied even after completion of repairs. How these complaints
are handled is important to a companys reputation for quality and service. Eventually, profitability
is likely to be affected as well. A 1976 consumer survey found that among households that initiated
complaints to resolve problems, more than 40%were not satisfied with the results. Understandably,
the degree of satisfaction with complaint resolution closely correlated with consumers willingness
to repurchase the offending brands (Consumer Network, Inc., 1983). Similarly, companies differ
widely in their approaches to complaint handling and in the importance they attach to this element
of serviceability. Some do their best to resolve complaints; others use legal gimmicks, the silent
treatment, and similar ploys to rebuff dissatisfied customers.

7. Aesthetics

Aestheticshow a product looks, feels, sounds, tastes, or smellsis clearly a matter of

personal judgment and a reflection of individual preference. Nevertheless, there appear to be some
patterns in consumers rankings of products on the basis of taste. A recent study of quality in 33
food categories, for example, found that high quality was most often associated with rich and full
flavor, tastes natural, tastes fresh, good aroma, and looks appetizing. The aesthetics dimension
differs from subjective criteria pertaining to performancethe quiet car engine, sayin that
aesthetic choices are not nearly universal. Not all people prefer rich and full flavor or even agree
on what it means. Companies therefore have to search for a niche. On this dimension of quality, it
is impossible to please everyone.

8. Perceived Quality

Consumers do not always have complete information about a products or services

attributes; indirect measures may be their only basis for comparing brands (Bonner & Nelson,
1985). A products durability, for example, can seldom be observed directly; it usually must be
inferred from various tangible and intangible aspects of the product. In such circumstances,
images, advertising, and brand namesinferences about quality rather than the reality itselfcan
be critical. For this reason, both Hondawhich makes cars in Marysville, Ohioand Sony
which builds color televisions in San Diegohave been reluctant to publicize that their products
are made in America.

Reputation is the primary stuff of perceived quality. Its power comes from an unstated
analogy: that the quality of products today is similar to the quality of products yesterday, or the
quality of goods in a new product line is similar to the quality of a companys established products.

Competing on Quality
A companys first challenge is to use this framework to explore the opportunities it has to
distinguish its products from another companys wares. The quality of an automobile tire may
reflect its tread-wear rate, handling, traction in dangerous driving conditions, rolling resistance
(i.e., impact on gas mileage), noise levels, resistance to punctures, or appearance. High-quality
furniture may be distinguished by its uniform finish, an absence of surface flaws, reinforced
frames, comfort, or superior design.

A company need not pursue all eight dimensions simultaneously. In fact, that is seldom
possible unless it intends to charge unreasonably high prices. Technological limitations may
impose a further constraint. In some cases, a product or service can be improved in one dimension
of quality only if it becomes worse in another. Cray Research, a manufacturer of supercomputers,
has faced particularly difficult choices of this sort. According to the companys chairman, if a
supercomputer doesnt fail every month or so, it probably wasnt built for maximum speed; in
pursuit of higher speed, Cray has deliberately sacrificed reliability.
Strategic Errors
A final word, not about strategic opportunities, but about the worst strategic mistakes
(James, 1966, p.15). The first is direct confrontation with an industrys leader. As with Yamaha
vs. Steinway, it is far preferable to nullify the leaders advantage in a particular niche while
avoiding the risk of retaliation. Moreover, a common error is to introduce dimensions of quality
that are unimportant to consumers. When deregulation unlocked the market for residential
telephones, a number of manufacturers, including AT&T, assumed that customers equated quality
with a wide range of expensive features. They were soon proven wrong. Fancy telephones sold
poorly while durable, reliable, and easy-to-operate sets gained large market shares.

It is often a mistake to stick with old quality measures when the external environment has
changed. A major telecommunications company had always evaluated its quality by measuring
timelinessthe amount of time it took to provide a dial tone, to connect a call, or to be connected
to an operator. On these measures it performed well. More sophisticated market surveys,
conducted in anticipation of the industrys deregulation, found that consumers were not really
concerned about call connection time; consumers assumed that this would be more or less
acceptable. They were more concerned with the clarity of transmission and the degree of static on
the line. On these measures, the company found it was well behind its competitors.

Quality measures may be inadequate in less obvious ways. Some measures are too limited;
they fail to capture aspects of quality that are important for competitive success. Singapore
International Airlines, a carrier with a reputation for excellent service, saw its market share decline
in the early 1980s. The company dismissed quality problems as the cause of its difficulties because
data on service complaints showed steady improvement during the period. Only later, after SIA
solicited consumer responses, did managers see the weakness of their former measures. Relative
declines in service had indeed been responsible for the loss of market share. Complaint counts had
failed to register problems because the proportion of passengers who wrote complaint letters was
smallthey were primarily Europeans and U.S. citizens rather than Asians, the largest percentage
of SIA passengers. SIA also had failed to capture data about its competitors service
improvements. Therefore, managers have to stop thinking about quality merely as a narrow effort
to gain control of the production process, and start thinking more rigorously about consumers
needs and preferences. Quality is not simply a problem to be solved; it is a competitive opportunity.
 Importance of TQM Philosophy

Quality management ensures superior quality products and services. Quality management
tools ensure changes in the systems and processes which eventually result in superior quality
products and services. Quality management methods such as Total Quality management or Six
Sigma have a common goal - to deliver a high-quality product. Quality management is essential
to create superior quality products which not only meet but also exceed customer satisfaction.
Customers need to be satisfied with your brand. Business marketers are successful only when they
emphasize on quality rather than quantity.

Quality management is essential for customer satisfaction which eventually leads to

customer loyalty. Customers would return to your organization only if they are satisfied with your
products and services. Make sure the end-user is happy with your product. Quality management
ensures high quality products and services by eliminating defects and incorporating continuous
changes and improvements in the system. High quality products in turn lead to loyal and satisfied
customers who bring ten new customers along with them. Quality management ensures that you
deliver products as per promises made to the customers through

Quality Management ensures increased revenues and higher productivity for the
organization. Implementing Quality management tools ensure high customer loyalty, thus better
business, increased cash flow, and satisfied employees, healthy workplace and so on. Quality
management processes make the organization a better place to work. Remove unnecessary
processes which merely waste employees time and do not contribute much to the organizations
productivity.

Quality management helps organizations to reduce waste and inventory. It enables

employees to work closely with suppliers and incorporate Just in Time Philosophy. Quality
management ensures close coordination between employees of an organization. It inculcates a
strong feeling of team work in the employees.

The Importance of Quality Management Systems in Project Management

Increased efficiency. Businesses that go through the ISO 9001 QMS certification process
have the aim to maximize the efficiency and quality of their projects. As part of the process,
guidelines will be put in place for all employees to follow. This means that when dealing with
trouble-shooting issues, transactions or training it will be a much smoother process and less
draining in terms of time or financial outlay.

Better employee morale. Members of staff need to be motivated and satisfied to perform
well. Clearly defined roles, accountability of management, established training systems as well as
a clear understanding of how their roles affect the quality and the success of projects are all part
of fostering an effective employer/staff relationship (Beckford, 2002). It makes good business
sense to retain good staff rather than go through the process of re-hiring and re-training and it boils
down to the fact that great employees are not replaceable.

International recognition. ISO is a worldwide mark of quality management, making a

business appear reliable and trustworthy. It is the goal of many businesses to come up with projects
that seek global recognition and ISO accreditation will go a long way to establishing credence in
the international business arena.

Improvement of processes. You can learn what improvements are needed by the facts that
you find through a system of documentation and analysis. This is a carefully planned and
implemented procedure, which will guarantee that you make the correct investment/project
choices for your business and eliminate the risks of any costly mistakes.
REFERENCES

Beckford, J. (2002). Quality. London, Routledge.

Boaden, R.J. (1997). What is total quality management: an empirical study in Norway
Bonner, P.G., & Nelson, R. (1985). Product Attributes and Perceived Quality: Foods
in Perceived Quality, ed. Jacob Jacoby and Jerry C. Olson. Lexington, Mass.: Lexington
Books, D.C. Heath.
Consumer Network, Inc. (1983). Brand Quality Perceptions. Philadelphia: Consumer Network.
Feigenbaum, A.V. (1983). Total quality control 3rd edn., McGraw-Hill, New York, 1983.
James, F.H. (1966, p.15). Zero Defects. New York: McGraw-Hill.
Kaoru, B.I. (1985). What Is Total Quality Control? The Japanese Way, translated by David J. Lu,
Prentice-Hall.
Lodgaard, E. & Aasland, K. E. (2011). An examination of the application of Plan-do-check-act
cycle in product development. International conference on engineering design.
Oakland, J. (2003). Total Quality Management. Burlington, MA: Butterworth-Heinemann
Ren, M. M., Ling, N., Wei, X., & Fan, S. H. (2015, November). The Application of PDCA Cycle
Management in Project Management. In Computer Science and Applications (CSA), 2015
International Conference on (pp. 268-272). IEEE.
Roger, B.Y. (1982). The Durability Factor. ed. Emmaus, Penn: Rodale Press.
Shing, S. (1986). Zero quality control: source inspection and the poka-yoke system, Cambridge,
Mass., Productivity Press
Zaklouta, H. (2011). Cost of quality tradeoffs in manufacturing process and inspection strategy
selection, Massachusetts Institute of Technology, Massachusetts.
 Appendices
Appendix I: Managing Quality

Identifying Inspection Statistical Quality Strategic Total

Characteristics/ (1800s) Quality Control Assurance Quality
Date of (1930s) (1950s) Management
inception (1980s)
Primary concern Detection Control Coordination Strategic impact

View of quality A problem to be A problem to be A problem to be A competitive

Solved Solved solved, but one Opportunity
that is attacked
proactively
Emphasis Product Product The entire The market and
uniformity uniformity production consumer needs
with reduced chain,
inspection from design to
market, and the
contribution of
all
functional
groups,
especially
designers, to
preventing
quality
failures
Methods Gauging and Statistical tools Programs and Strategic planning,
Measurement and techniques Systems goal-setting, and
mobilizing the
organization
 Role of quality Inspection, Troubleshooting Quality Goal-setting,
professionals sorting, and the measurement, education and
counting, application quality training,
and grading of statistical planning, consultative work
methods and program with other
design departments, and
program design
Who has The inspection The All department, Everyone in the
responsibility for department manufacturing although top organization, with
quality and engineering management is top management
departments only exercising strong
peripherally leadership
involved in
designing,
planning, and
executing
quality
policies
Orientation and Inspects in Controls in Builds in Manages in
approach Quality quality quality quality

Garvin D.A. (1998). Managing quality: The strategic competitive edge. New York: Free Press-
Macmillan. P37.
Appendix II: The twelve TQM factors

1. Committed leadership: steadfast, long-term commitment by top management to Continuous

Improvement.
2. Adoption and communication of TQM: using tools like the mission statement, vision
statement and core values.
3. Closer customer relationships: determining and meeting staff and customers requirements
at all cost.
 4. Closer supplier relationships: working closely and cooperatively with suppliers and
ensuring they provide inputs that conform to customers' end-use requirements.
5. Benchmarking: researching and observing best competitive practices.
6. Increased training: usually includes TQM principles, team skills, and problem-solving.
7. Open organization: lean staff, empowered work teams, open horizontal communications,
and less bureaucracy.
8. Employee empowerment: increased employee involvement in design and planning, and
decision-making.
9. Zero-defects mentality: a system in place to spot defects as they occur, rather than through
inspection and rework.
10. Flexible manufacturing: just-in-time inventory, cellular manufacturing, design for
manufacturability (DFM), statistical process control (SPC), and design of experiments (DQE).
11. Process improvement: reduced waste and cycle times through cross-departmental process
analysis.
12. Measurement: goal-orientation and zeal for data, with constant performance measurement,
often using statistical methods.
Adopted from Powell (1995)
Appendix III: Important events in the development of TQM

1924-1932.
Hawthorne studies demonstrated the importance of the social and psychological climate in work.
1924.
Shewhart developed statistical process control.
1926.
The Bell Telephone began to apply statistical control methods.
Mid 1940s.
The American army pushed the use of sampling methods during World War II.
1950s.
A large number of attempts at work improvement were undertaken (e.g. job enrichment, work
redesign, participative management, quality of work life and worker involvement).
1950.
First visit of Deming to Japan.
1951.
Creation of Deming Application Prize in Japan.
First edition of Jurans Quality Control Handbook.
1954.
First visit of Juran to Japan.
Maslows theories about human needs.
1960.
Liberalisation of economy in Japan with pressure to improve quality to compete with foreign
companies.
McGregors X and Y theories.
1961.
First edition of Feigenbaums Total Quality Control.
1962.
The idea of quality circles appeared in the first issue of the Japanese journal Quality Control
for the Foreman.
Late 1960s and early 1970s.
The pressure of Japanese companies began to be felt in American companies.
1972.
QFD was developed at Mitsubishis Kobe shipyard site.
1973.
After the 1973 oil crisis the JIT system was adopted by a vast number of Japanese companies.
A small number of American and European companies began to apply this system in the 1980s.
Mid 1970s.
Quality circles began to be widely introduced in the USA, the first quality circle programme
was launched in Lockheed in 1974 and in the UK it was Rolls Royce who introduced the concept
in 1979.
1979.
First edition of Crosbys Quality is Free.
Xerox Corp. started to apply the benchmarking concept to processes.
 Publication of the BS5750 quality management series.
1980.
A NBC television documentary about the Japanese miracle proposed Deming as a key element
in this miracle.
1981.
Ouchis Z theory.
1982.
First edition of Demings Quality, productivity and competitive position.
1983.
Quality on the line, published by Garvin in Harvard Business Review analysed the differences
between Japanese and American companies, showing some of the reasons for the better
performance of the former.
A paper about Taguchis design of experiments is published in Harvard Business Review
(Taguchi and Clausing, 1983).
1985.
The Naval Air Systems Command named its Japanese-style management approach total quality
management.
1986.
First edition of Demings Out of the crisis. It became a best seller.
1987.
First edition of ISO 9000 quality management system series.
1987.
Publication of the Malcolm Baldridge National Quality Award.
Adapted from Angel R. Martinez-Lorene, Frank Dewhurst, Barrier G, Dale (1998) Total Quality
Management origins and evolution of the term, The TQM Magazine Vol.10 Issue 5 pp 378-386.
Appendix IV: Evolution of Total Quality Management: TQM Timeline and History of 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 a workers
productivity could be impacted by participation.
1930s Walter Shewhart developed the methods for statistical analysis and control
of quality.
W. Edwards Deming taught methods for statistical analysis and control
quality to Japanese engineers and executives. This can be considered the o
origin of TQM.
Joseph M. Juran taught the concepts of controlling quality and managerial
1950s breakthrough.
Armand V. Feigenbaums book Total Quality Control, a forerunner for the
present understanding of TQM, was published.
Philip B. Crosbys promotion of zero defects paved the way for quality
improvement in many companies
The Japanese named their approach to total quality companywide quality
control. It is around this time that the term quality management systems
1968 arises.
Kaoru Ishikawas synthesis of the philosophy contributed to Japans
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 Malcom Baldrige National Quality Award
specify principles and processes that comprise TQM.
Adapted from Angel R. Martinez-Lorene, Frank Dewhurst, Barrier G, Dale (1998) Total Quality
Management origins and evolution of the term, The TQM Magazine Vol.10 Issue 5 pp 378-386.