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Total Quality Management

(BAC 102)Introduction to Quality Management

Dr. Ernesto D. [email protected]

0915-5023466

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2

Modern Importance of Quality

The first job we have is to turn

out quality merchandise that

consumers will buy and keepon buying. If we produce it

efficiently and economically,

we will earn a profit, in which

you will share.

- William Cooper Procter

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What is Total Quality Management

(TQM)

Total quality

management is a

management system for acustomer focused

organization that involves

all employee in continualimprovement of all

aspects of the

organization.

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What is Quality Assurance

Quality assurance refers to anyplanned and systematic activity

directed toward providing consumers

with products (goods and services) ofappropriate quality, along with

confidence that products meets

consumers requirements.

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What is Total Quality Management

(TQM)

TQM uses strategy, data,

and effectivecommunication to

integrate the quality

principles into the culture

and activities of the

organization.

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The quality movement

can trace its roots

back to medieval

Europe, where

craftsmen began

organizing into unions

called guilds in the

late 13th century.

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GUILDAny of various medieval associa

tions, as of merchants or

artisans, organized to maintain

standards and to protect the

interests of its members, and th

at sometimes constituted a

local governing body.

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Until the early 19th

century,

manufacturing in the

industrialized world

tended to follow this

craftsmanship model.

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The factory system,

with its emphasis on

product inspection,started in Great Britain

in the mid-1750s and

grew into the IndustrialRevolution in the early

1800s.

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In the early 20th

century,

manufacturers

began to include

quality processes

in quality

practices.

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In the early 1900, the work

of Frederick W. Taylor, oftencalled the father of

scientific management led

to a new philosophy ofproduction- separate

planning from the execution

function.

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Leaders of the second

Industrial Revolution,Henry Ford Sr., developed

many fundamentals of

what we now call totalquality practices.

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Walter Shewhart, ushered

in the era of statisticalquality control (SQC), the

application of statistical

methods for controllingquality, use of control

charts to identify quality

problems.

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The US armed forces

initially inspected virtually

every unit of product; thento simplify and speed up

this process without

compromising safety, themilitary began to use

sampling techniques for

inspection,

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Also, the USAF aided

by the publication of

military-specificationstandards and

training courses used

statistical processcontrol techniques.

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The birth of total

quality in the United

States came as a direct

response to the qualityrevolution in Japan

following World War II,.

Major Japanese

manufacturers convertedfrom producing military

goods for internal use to

producing civilian goods

for trade.

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At first, Japan had awidely held reputation

for shoddy exports, andtheir goods wereshunned by internationalmarkets.

This led Japaneseorganizations to explorenew ways of thinkingabout quality.

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Japanese welcomed input from

foreign companies and lecturers,

including two American quality

experts:

W. Edwards Deming, who had

become frustrated with American

managers when most programsfor statistical quality control were

terminated once the war and

government contracts came to

and end.

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Joseph M. Juran, who

predicted the quality of

Japanese goods wouldovertake the quality of

goods produced in the

United States by the mid-1970s because of Japans

revolutionary rate of

quality improvement.

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History of Quality

Dr. W. Edwards Deming is known as thefather of the Japanese post-war industrial

revival and was regarded by many as the

leading quality guru in the United States.

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Joseph M. Juran made many

contributions to the field of

quality management. His book,

the Quality Control Handbook, isa classic reference for quality

engineers. He revolutionized the

Japanese philosophy on quality

management and in no small

way worked to help shape their

economy into the industrial

leader it is today.

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Dr. Juran was the

first to incorporate

the human aspect of

quality management

which is referred toas Total Quality

Management.

Joseph M. Juran

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Japans strategies

represented the new total

quality approach.

Rather than relying purely

on product inspection,

Japanese manufacturers

focused on improving all

organizational processes

through the people who

used them.

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As a result, Japan was able to producehigher-quality exports at lower prices,

benefiting consumers throughout the

world.

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American managers

were generally

unaware of thistrend, assuming any

competition from

the Japanese wouldultimately come in

the form ofprice,

not quality.

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In the meantime,

Japanese

manufacturers beganincreasing their share

in American markets,

causing widespreadeconomic effects in

the United States:

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Manufacturers began losing market

share, organizations began shippingjobs overseas, and the economy

suffered unfavorable trade balances.

Overall, the impact on American

business jolted the United States into

action

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By the 1970s, U.S.

industrial sectors

such as automobiles

and electronics had

been broadsided byJapans high-quality

competition.

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The U.S. response,

emphasizing not only

statistics butapproaches that

embraced the entire

organization, becameknown as total quality

management (TQM).

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By the last decade of the

20th century, TQM was

considered a fad bymany business leaders.

But while the use of the

term TQM has fadedsomewhat, particularly

in the United States, its

practices continue.

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In the few years since

the turn of the

century, the qualitymovement seems to

have matured beyond

Total Quality.

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New quality systems have

evolved from the

foundations of Deming,Juran and the early

Japanese practitioners of

quality, and quality has

moved beyond

manufacturing into service,

healthcare, education and

government sectors.

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End of Part 1

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In 1984 the US government designated

October as National Quality Month. In 1985, NASA announced an Excellence

Award for Quality and Productivity.

In 1987, the Malcolm Baldrige National

Quality Award, a statement of nationalintent to provide quality leadership wasestablished by the Act of Congress

Early Success