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Theories and concepts in total

quality managementJohn A. Dotchin

a & John S. Oakland

a

a European Centre for TQM, University of Bradford,

Management Centre, Emm Lane, Bradford, West Yorkshire,

BD9 4JL, UK

Version of record first published: 28 Jul 2006.

To cite this article: John A. Dotchin & John S. Oakland (1992): Theories and concepts in total

quality management, Total Quality Management, 3:2, 133-146

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TOT AL QUALITY MANAGEMENT, VOL. 3, NO. 2,1992

Theories and concepts in total quality

management

JOHN A DOTCHIN

JOHN

S OAKLAND

European Centrefor T Q M Universi ty of Bradford Management Centre Emm Lane

Bradford We st Yorkshire BD9 4 J L

U

Abstract Th is paper uses a review of the literature to examine qua lity as a concept an d in the

context of providing a n operational understanding. T Q M is presented as holistic approach

which requires customer orientation empowered people atten tion to the process ag oo d qua lity

system and continuous imp rove me nt. Th e concepts theories and components are assembled into

a new model for T Q M .

Introduction

An examination of the ANBAR abstracting service for the 17 years up to an including 1988

shows that there has been an increase of more than six times in the number of papers

classified under quality , from 22 in 1971-72, to 134 in 1988-89. As can be seen in Fig. 1,

most of the increase has occurred since 1979, vol. 8, and is in the classification concerned

with production, rather than the non-production category. Th is indication of the growth

in the number of papers dealing with the subject corresponds with the increase in quality

awareness commented on by Juran (1988) and which he attributes to initiatives taken by

many companies in the early 1980s, in response to what amounted to a quality crisis for

many U S manufacturing companies faced with competition from Japan.

The literature offers many recommendations for implementing total quality, and

principles for management. Different authors place their individual emphases, and it

might be inferred that substantially different philosophies are being represented. A more

careful analysis, however, reveals surprisingly similar content. I t is possible to recognize

the influence of Feigenbaurn (1956), Juran (1964), Crosby (1979), and Deming (1982), to a

variable extent, in many subsequent works.

Many of the tools used in total quality management (TQM) have rigorous theoretical

background and are proven empirically, for example, many of the techniques and procedures

incorporated in statistical quality control (Shewhart, 1931), or more recently statistical

process control (Oakland Followell, 1990). In sharp contrast, there is little published

research on other aspects, especially about the integration of the whole. Although most of

the little available empirical work is inconclusive, in general it tends to support the views

propounded by the acknowledged authorities (Garvin, 1988; Saraph

et al.

1989).

Quality as a concept

Scholars face many problems when defining quality as an economic as opposed to a

transcendent concept. Th e difficulties it seems apply equally to goods and to services. In

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134

JOHN A DOTCHIN JOHN

S

OAKLAND

1 2 3 4 6

7

8

9 10

11 12 13 14 15 16

7

18

Vol 1

=

1971 Vol 18

=

1989

-

Prodn.

c

Non Prodn.

igure 1

A N B A R Abstracts classed as quality of production 3 .5 1 ) and quality non-production) 2 .5 8 )

1968, Edwards used the definition quality is the capacity of a commodity or service to

satisfy human wants . He noted that human wants are complex, and may not always be

satisfied in a particular way, users of products make a personal assessment of quality. Each

case will be influenced by how well numerous aspects of performance are able to provide

satisfaction of multiple wants and further distinguished by the subjective importance

attached by the individual.

For many products, judgements must be made over their useful life, and reliability

and ease of maintenance must be taken into account. Another aspect of time and quality

was given almost 60 years ago by Shewhart (1931) who drew attention to the particular

difficulty of knowing and measuring what consumers will consider to be acceptable quality

in the future. Townsend Gebhart (1986) separted quality of perception , as seen sub-

jectively by the customer, from quality of fact , or performing to the standard which has

been set. Both need to be recognized and two of the most frequently repeated definitions of

quality, provided by Juran and by Crosby, illustrate this. Juran (1974) referred to quality

being fitness for purpose . judged by the user, not manufacturer, merchant, or repair-

man .

A

different but equally important emphasis was given by Crosby (1979) who defined

quality as conformance to requirements, not elegance .

These definitions are not mutually exclusive, as they may at first seem, but apply in

different contexts. What the two definitions have in common is (1) powerful simplification

of the concept and

2)

they are memorable.

Both definitions have passed into general use and have even stimulated argument and

disagreement (Crosby, 1989). Some of this popular acceptance is because of implicit as

well as explicit meaning.

The strength of assumed meaning and implication, can create problems of under-

standing, however. For example, the word conformance has strong desirable associ-

ations in the manufacturing function of a company, but may be anathema in the design

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THEORIES ND

CONCEPTS IN

TQM

135

department of a firm making a product with a strong fashion element. Groocock (1986),

discussing this problem, pointed out that short messages can easily be misinterpreted

because of the wealth of implication that they carry. This was further supported by

research at AT T (Lader Alexander, 1988) which found that some messages, intended

to motivate for quality, have the opposite effect and stimulate negative feelings. Hence, the

words chosen to define and explain quality should be selected with careful attention to the

collective experience of the group concerned.

Quality in context

n

explanation of why quality should have different meanings in different contexts was

given by Garvin (1984,1988) by a recognition of five approaches:

transcendent or innate excellence;

product-based or the amount of a desirable attribute which is present;

user-based in the context of fitness for use;

manufacturing-based or conformance to specification;

value-based or satisfaction relative to price.

Garvin argued that these meanings can co-exist. Furthermore, it is necessary to

change the approach taken towards quality from user-based to product-based, as products

move through market research to design; and then from product-based to manufacturing-

based, as they go from design into manufacture. He also noted that it may be necessary to

give quality different meanings in different industries.

This was partially explained by Cullen Hollingham's (1988) assertion that total

quality, unlike a piece of equipment, cannot be purchased but 'must be developed in the

minds of everyone in the organization'. That Ford, after several years of quality improve-

ment experience, have recently changed from using a 'conformance to requirement'

definition of quality to one which places more emphasis on customer, reliability and value,

suggests that it is necessary to be prepared to redefine quality in response to external

influences, and as organizational learning allows and dictates.The conclusion that may be

drawn from the above is that although quality, being the ability of products, goods and

services to satisfy human requirements, may have universal truth, it is also necessary to

have a more detailed expression of the meaning of quality in the context of the following:

(1)

the particular organization;

(2)

specific activities and functions within the organization;

3)

the state of maturity and experience of the group(s) concerned.

This is consistent with that part of Harrington's (1987) recommendations for

improving quality in organizations, which suggests the need for first developing a common

understanding that is relevant to the enterprise as a whole, and then proceeding to refine

the meaning in functions, departments and work groups.

eed for an operational understanding of quality

Deming (1982, 1986) has succinctly observed that the concept is only the beginning of

meaning, since 'concepts are ineffable. he only communicable meaning is the record of

what happens on application'. In deciding what dimensions might be used to record the

'application' of quality, several of the models and structures described in the literature

have been considered. Some of these are listed in Table 1.

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JOHN A. DOTCHIN JOHN

S

OAKLAND

able 1 Selected q uality tnodels

Ishikawa (CWQC) 1985 All functions, all employees, continuous improvement, customer

orientation

Juran 1986189 Planning, control, improvement

Snee 1986 Philosophy, control, improvement

Hoernschemeyer 1989 Context, barr ier removal, empowering people, communication

Oakland 1989 Management , system, teamwork, tools

Shores 1989 Customer, management, participation, systematic analysis

Saraph er al

1989

Management leadership, quality department, training, design, supplier

management, process management, process control, data and reporting,

employee relations

As most quality recommendations have evolved through work in the manufacturing

sectors (Garvin, 1988), and since none of the models summarized in Table 1 is considered

to be more appropriate than any other in respect of service quality, T Q M is here discussed

under six headings borrowed from several of the models.

otal quality management is holistic

Writing about the approach taken by Deming, Gabor (1988) observed that T Q M is holistic

in that it can only be conceived if it includes all the functions in the organization, all the

people who work there, and all the other organizations and individuals supplying and

receiving goods and services. This must not suggest an overview, however, since it also

requires attention to and understanding of the detailed operation of all processes and

functions (Deming, 1982).

The term Total Quality Control was used by Feigenbaum in 1956 to emphasize that

quality control cannot be achieved by concentration on just the production function since

quality is determined at all stages in the industrial cycle, and the early stages, such as

design, have the most influence. Oakland (1989) has built on this and added that T Q M

enables every part of the organization to work towards the same goal. In a similar vein,

Ishikawa (1985) asserted the need for cross-functional management in the form of steering

committees and councils, to overcome sectionalism.

The representation of production as a system , used by Deming in Japan in 1950

(Deming, 1982, 1986) to show how improvement envelopes the entire operation, was

restated by Scholes Hacquebord (1988) as the alternative to a chain of command view of

organization. Functions recognize internal supplier-customer relationships (Oakland,

1989), with the next process being the customer (Ishikawa, 1985). Not only should all

functions be involved in TQM, but so also should all the people in the organization.

Everyone needs to know what their job is and how it fits into the system if quality is to be

achieved (Ishikawa, 1985). This applies to all tasks, and to all levels in the organization

(Endosomwan, 1988).

The scope of total quality not only extends beyond operations to the other functions

within the organization, it also involves knowledge and understanding of suppliers and

their suppliers, and customers and their customers (Oakland, 1989). Several authorities

place emphasis on the way firms must work with suppliers, co-operating to prevent defects

through better understanding of respective processes and requirements (Deming, 1982,

1986; Juran, 1974; Ishikawa, 1985; Oakland, 1989). Product improvements are often also

dependent upon technological advances by suppliers of materials, and their supplier

(Price, 1984). Some organizations have reported benefits by encouraging contacts with


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THEORIES ND CONCEPTS IN TQ 137

customers and suppliers at several levels, and including the operators in this (Doran,

1985).

Other organizations and lobbies, which do not have direct commercial links, also

influence considerations of quality. The consumer movement, Government action on

deregulation, development of national and international standards, and technological

advances, are all examples of this. Another, and in some situations a primary influence,

is competition. Quality as noted in the introduction, is at last being recognized as a

strategic issue, fundamental to survival in increasingly competitive situations (Peters,

1988; Heskett, 1986, 1987; Levitt, 1980).

ustomer orientation

Customer awareness and being responsive to customers requirements, is integral to TQM.

Its importance has been stressed by most authorities.

Conway (1988) pointed out that

customers define quality and customer orientation is a cornerstone of several models,

including Japanese company-wide quality control. This emphasis is needed to overcome

the results of the process of industrialization which has tended to isolate producers from

the customer (Juran Gryna, 1980)-an observation made in a manufacturing context but

which can also be seen in the more mature and complex services, for example, in banks

where there are large numbers of operators who work in the back office, not unlike those

in a factory (Levitt, 1979; Deming, 1982,1986).

People in direct customer contact, such as many people in the service sector, benefit

from direct feedback (Juran Gryna, 1980). Even so, objective on-the-spot assessment of

that feedback is not always possible. Emigh (cited in Deming, 1982) observed that service

workers are not aware of the product (because it is intangible) and hence they may be

unable to visualize customer satisfaction.

In all types of organizations, it is necessary to know about customers likes, tastes and

applications (Ishikawa, 1985). This applies to the immediate customer and the ultimate

user (Juran Gryna, 1980). I t is insufficient to rely solely on customer complaints. Careful

attentive listening to customers opinion is also needed (Hutchins, 1985; Kinsley, 1979;

Deming, 1982, 1986; Marr, 1986; Desatnick, 1987; Peters, 1988; Scholes Hacquebord,

1988). This can be through formal market research (Juran 1974), and also by creating

opportunities for people at all levels, and in all positions in the organization, to be exposed

to customers (Doran, 1985; Peters, 1988).

Peters Austin (1985) found that, although executives agree that customers are of

primary importance, very little is acted on. Marr (1986) attributed this to lack of trust in

customer research data because they are based on subjective perceptions, and he provided

some recommendations for making assessment more reliable; though these still rely on

subjective customer opinion. Leading organizations are active in this field and Hauser

(1988) gave examples of Japanese and U S companies using discussion with customers,

focus groups and qualitative interviews throughout the product development and design

process. These techniques, incorporated into quality function deployment (GFD)

(Sullivan, 1988), increase the effectiveness of customer consideration.

Even this level of customer involvement is not sufficient to determine future needs.

The customers of banks could not have anticipated charge cards . It needed computer

technology, investment in the network and marketing before EFTPOS (electronic

financial transactions at point of sale) could be realized. It is often necessary to lead the

customer into the future (Deming, 1982), but to focus creativity on the application, and

hence the customer, rather than to rely on giant technological leaps (Peters, 1988).

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THEORIES ND CONCEPTS I N TQM

139

Attention to the process

One of the most important precepts in total quality, and a hallmark of its application in the

Far East, was noted by Oakland (1989) as the attention paid to the detail of the process.

Often improvements can only be achieved by involving people who have detailed knowl-

edge of the process, or are in a position to acquire it. For example, a detailed flowchart of

anything more than the simplest process can seldom be completed without the help of

others (Oakland, 1989), since boundaries of responsibility are crossed by nearly all

processes in real organizations (Ishikawa, 1985).

Standards are necessary to know if the job has been completed and determining

methods leads naturally to standardization which is necessary for delegation of authority

(Ishikawa, 1985). Standards used merely as a means of preventing progress must be

avoided however (Juran, 1964). There are particular problems which apply in standardiz-

ing some service processes because of the variation which direct customer involvement

introduces (Morris Johnston, 1987). Nevertheless some types of services have very

successfully applied standards. The fast food business (Levitt, 1979) provides and

example where setting service standards has contributed to simultaneous improvement in

efficiency and quality.

For Deming (1982, 1986), understanding the nature of variation is essential. The

causes of variation can be either common , and determined by the capability of the system,

or special (Shewhart used random and assignable ), and can be attributed to some

special event. Failure to distinguish one from the other will result in inappropriate adjust-

ment actually increasing variability. system is only manageable when it is in statistical

control, because then it is possible to predict output and measure the effect of changes.

Applying this in some parts of service organizations may prove difficult, because of the

problem of setting standards when customers are present during the operation, and

because of the difficulty in measuring multiple, intangible attributes.

T o clarify the relationship between cause and effect and to identify the factors which

hinder smooth functioning of the process, analysis using seven simple tools is adequate in

the majority of cases (Ishikawa, 1985). These are flowcharts, tally graphs, histograms,

Pareto analysis, scatter diagrams, Ishikawa (cause and effect) diagrams and control charts.

Most writers agree that statistical process control (SPC) is a key tool for the manage-

ment of processes (Deming, 1982; Oakland Followell, 1990; Endosomwan, 1988). Juran

and others wisely caution against any approach to quality driven only by technique. There

are numerous examples of SPC being used in manufacturing and some in other situations.

Deming gives many examples of what might be studied with statistics in service industries,

but does not include the less tangible process which, according to Morris Johnston

(1987), are key differences between service and manufacture.

Difficulties with service processes compared with manufacturing processes were

summarized by Endosomwan (1988) as follows:

(1) more difficult to define ownership, measurement, cycle times, customers and

boundaries;

2)

both inputs and outputs are less tangible;

(3)

more difficult to quantify;

(4) less well established;

(5) less repetition.

Williams Zigli (1987) suggested that further research is needed into the application

of multivariate methods to produce information for the control of service processes. They


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140

JOH N A DOT CHI N JOH N S OAKL AND

further suggested that operations research techniques like fuzzy set theory, and goal

programming, which can be useful in dealing with ambiguous and subjective information,

may also provide insights when applied to the problems of process improvement in

services.

uality systems

Juran (1988) has stated that strategic planning for quality requires a corporate infra-

structure, in a structure, in a similar way to strategic business planning. Many other

authorities also place stress on the need for a system so that, '. . . human, administrative

and technical factors affecting quality will be under control (Oakland, 1989). Oakland

also explained that, in practice, gaining control takes the form of Quality Management

Systems which are used to ensure that the customer s requirements and the organization s

requirements can be met. These systems are established within the context of the organiz-

ation s quality policy and structure, and will incorporate a plan for achieving quality of

each product or service and be documented in a quality manual setting out the procedures

and practices in appropriate detail.

Oakland (1989) described how international and company standards, such as I S 0

9000 and Ford s Q l , provide a template for systems which can be used by organizations as

the stimuli to examine their activities, record what they actually do, and provide the basis

for standardization and improvement. This involves setting policy, developing quality

manuals, a quality information recording and analysis system, quality plans, and providing

for quality system checks by audit, survey and review.

Although Ishikawa (1985) recognized the role played by national standards in his

country s economic recovery, he also cautioned against self satisfaction having achieved

the standard, and stressed the need for continuous improvement. Deming (1986)

reminded us that systems are not universally regarded as a positive factor since, to the

production worker, historically the system is mostly repressive. This suggests that sys-

tems, although necessary, should not be allowed to dictate, or be thought of as justification

for action or inaction of their own merit . Rather, according to Deming, systems must be

subordinate to, and supportive of, the organization s objectives.

There is the mistaken belief in some organizations that performance, as reflected in

terms of output figures, return on investment, etc., is separate from quality issues. Thi s has

been blamed on specialization (Juran, 1988), perhaps resulting from wide adoption of

Taylor s scientific management methods. Possibly the most persistent reason for this

misconception is constant reinforcement by the actions of senior managers to override

quality policies and standards in the interest of other priorities. In these circumstances

there is a need for a quality function with equivalent standing to other functions. Crosby

(1979) and Harrington (1987) have recommended the use of a procedure of corrective

action in which quality problems are escalated to successively higher levels in the manage-

ment and quality function with the two parties acting in equality to resolve the issues

within the limits of their responsibility.

In Japan, where there are few quality specialists (Ishikawa, 1985), procedure is

implicit as well as explicit, and works effectively because in many of the major organiz-

ations lifetime employment ensures common understanding and shared values (Ouchi,

1981). Th is does not mean that attention to quality manuals, plans and records, etc. are

unnecessary in any circumstances, but that the responsibility can rest with either a quality

function, which is the usual method in manufacturing in Europe and the USA, or with the

direct operational function concerned, as is practised in Japan. Notably, even in Japan,


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THEORIES

ND

ON EPTS IN TQM 141

sectional interests need to be balanced and senior level cross-functional councils are used

(Ishikawa, 1985). These are similar to steering committees which have been proposed

by Crosby and Harrington and which have been adopted by Western organizations

attempting to improve and maintain quality.

Garvin (1988) noted that when T Q M is achieved in an organization, quality is part of

every job description and the quality function can be performed by a small professional

group able to advise at all levels and provide strategic input to business decisions.

Continuous improvement

The idea of continuous improvement is a cornerstone of the Deming philosophy as

practised in Japanese companies for many years. Quality should not be portrayed as a

programme with a definite end-point, but as a process. Crosby s 14-point plan for quality

improvement has, Do it over again , as the final point, to emphasize this aspect and also

recommends the use of novel projects to maintain interest among managers. He demands

improvement towards a standard of zero-defects , as opposed to a limit dictated by

economics.

Juran proposed annual improvement targets and project-by-project improvement

which are similar but, in contrast to Crosby, recognized an economic minimum, i.e. a point

beyond which it would be wasteful to expend more effort. Price (1984) dismisses this as the

mathematics of mediocrity . The apparent conflict between authorities concerning the

economics, and the principal, of continuous improvement, can be explained by noting that

economic trade-offs will exist, but only if external conditions are held constant. In practice,

it is never possible to hold constant conditions over an extended period of time since the

market and technology intervene. All the systems with which organizations are concerned

are open systems and, unlike closed systems which settle inevitably to an equilibrium,

open systems adopt different states dependent upon the input conditions (Pall, 1987).

Hence, today s minimum is tomorrow s suboptimum and continuous improvement is

required.

Deming uses the Shewhart cycle to illustrate continuous improvement. Continuation

of the cycle leads to a helix of improvement which is central to TQM.

Assembling the concepts theories and componente a new model for

TQM

In this paper definitions have been reviewed and we find that quality is most usefully

expressed in terms of an ability to satisfy customer requirements. It is also apparent that

quality should be defined in the organizational context.

We have also seen that T Q M involves the entire organization: all people, all functions,

and including external organizations, such as suppliers. The several facets of TQ M have

been reviewed, including the following:

recognizing customers and discovering their needs;

setting standards which are consistent with customer requirements;

controlling processes and improving their capability;

establishing systems for quality;

management s responsibility for setting quality policy, providing motivation

through leadership, and equipping people to achieve quality;

empowerment of people at all levels in the organization to act for quality

improvement

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J O H N A DOT CHI N JOHN S OAKLAND

The task of implementing T Q M can be daunting and the chief executive and directors

faced with it may become confused and irritated by the proliferation of theories and

packages. A synthesis, and at the same time simplification, is required. Dominant within

T Q M must be customer-supplier interfaces, both internally and externally, which are

linked by operational processes converting inputs to outputs. A first step is commitment to

building in quality by management of the inputs.

How can we help senior managers and directors know what needs to be done to

implement T Q M and to become committed to quality? Drawing on the words of wisdom

in management and leadership of the so-called gurus which many organizations are using

to establish a policy based on quality we have distilled

10

points for senior management to

adopt. Their sources will be clear to those well read in the field.

T he organization needs long term commitment to constant improvement.

T he philosophy of zero errorsldefects must be adopted to change the culture to

right first time .

Train the people to understand the customer-supplier relationships.

Do not buy on price alone-look

t

thc total cost.

Recognize that improvement of the systems has to be managed.

Adopt modern methods of supervision and training-eliminate fear.

Eliminate barriers between departments by managing the process-improve

communications and teamwork.

Eliminate

-goals without methods

-work standards based only on numbers

-barriers to pride of workmanship and

-fiction, get facts by using the correct tools.

Constantly educate and retrain-develop experts and gurus .

Develop a systematic approach

to

manage the implementation of TQ M .

These can be factored into soft and hard outcomes of T Q M . T he soft outcomes form

the basis of our model (Fig. 2).

Identify customer-supplier relationships

Manage processes

Culture

Communications

Commitment

T he process core must also be surrounded by some hard management necessities

-Systems (based on good international standard),

-Teams (the councils, quality improvement teams, quality circles, corrective action

teams, etc.) and

-Tools (for analysis, correlations, and predictions for action for continuous

improvement to be taken).

The model (Fig. 3 now provides a three-dimensional T Q M vision against which a

particular company s status can be examined, or against which a particular approach to

T Q M implementaiton may be compared and weakness highlighted.

Comparison with some of the models summarized in Table 1 shows that several

elements are in common, apart from semantic differences. Some other features of T Q M are

also present by implication. For example, Planning and Control is a necessary element

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Figure

2 Foundations for

the T Q M

model

O M M I T M E N T

Figure 3 T Q M model

within all the spheres. Similarly many of the tools used to identify and resolve problems

are relevant to customer and people aspects of quality management just as they are to the

processes.



13/15

We hope this conceptualization will help in understanding the differences of opinion

and approach referred to at the beginning of the paper and which are apparent in the

literature.

eferences

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CONWAY,.A. (1988) The right way to manage,

Quality Progress,

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CROSBY,.B. (1979) Quality is Free (New York, McGraw-Hill).

CROSBY,.B. (1989)Let s Talk Quality (New York, McGraw-Hill).

CULLEN,. HOLLINGHAM,. (1987) Implementing Total Quality (Bedford, I FS Publications).

DEMING, .E. (1982) Quality Productivity and Competitive Position (Cambridge, MA, M IT Press).

DEMING, .E. (1986) Out of the Crisis (Cambridge, MA, MI T Press)

DESATNICK,.L. (1987)Managing to Keep the Customer (San Francisco, CA, Jossey-Bass).

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p p

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