TOTAL QUALITY MANAGEMENT NOTES

TOTAL QUALITY MANAGEMENT NOTES

MODULE -I- TQM- HISTORY AND EVOLUTION

8 Dimensions of Quality Measurement

There are different dimensions of measuring the quality of goods or services. These dimensions
help to increase the satisfaction of customers.

8 dimensions of the quality measurement of goods or services suggested by David A. Garvin are
the most common in the business realm. They are:

Performance

This dimension focuses on the primary operating characteristics of products. Such characteristics
may relate to size, model, color, design, structure, and operating outcomes. For example, Sony TV
reaches in color, sound system, picture quality, etc.

Features

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It involves specific or extra characteristics of the product as compared to others. Such features
may relate to quality, price, operating cost, or extra service, etc.

For example, the Nano car of TATA Company is the cheapest among the cars, Hyatt Regency
Hotel’s complimentary breakfast facility to customers, etc

Reliability

This dimension involves the consistent performance of products within a specified period. There
is a minimum probability of defects or breakdown of products within a specified period. The rate
of repair and maintenance of such products is rare.

Suppliers provide a warranty for the repair and maintenance of such products for a specified
period such as the dealer of Honda Motorcycle provides six months free service facility.

Conformance

Conformance involves the degree to which the design and characteristics of products and services
meet the specific standards of the customers. Based on the level of income and desire, different
customers may have different degrees of standards.

For example, middle-class customers of Nepal prefer LG, Samsung, and similar types of products
for electronic products.

Durability

The length of the useful life of products or services is another of important dimension of
measuring quality. Some products provide service for a long period of time whereas some
products become useless within a short period of time.

For example, Japanese cars are more durable as compared to Indian and Chinese cars.

Serviceability

Courtesy, competence, and easy availability of repair and maintenance services are other
important dimensions. In the service sector, courtesy and competent services to customers
facilitate earning of reputation and prestige in society.

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Similarly, in the manufacturing sector, the easy availability of repair and maintenance services
helps to draw the attention of customers. For example, in Nepal, Maruti-Suzuki cars have easy
availability of spare parts and maintenance facilities.

Aesthetics

Aesthetics is a subjective dimension of quality. It involves the looks, taste, feel, sound, and smell
of products or services. It is a matter of personal judgment and a reflection of individual
preference. For example, the flavor texture of Baskin Robbin’s ice cream.

Perceived Quality

It is concerned with how the customers perceive the product or service. Quality is conveyed
through market standing, brand name, and reputation of the product.

Long-term standing in the market and service to the customers supports earning brand reputation
and prestige in the market. For example, among the cars, the Toyota brand has distinct perceived
qualities

Dimensions of service quality

Parasuraman, Zeithamel and Berry (1985) defined five dimensions for service quality,
represented by the diagram below:

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Dimension Definition Example

Includes the physical
appearance of the physical
service facilities, the
equipment, the personnel who Cleanliness of the
Tangibles do the servicing, the environment; personnel
communication materials and uniform; vehicles; flight
all tangible elements of
service provider facilities or
surroundings
Differs from the product
reliability in that it relates to
the ability of the service Achieving delivery times
Service reliability
provider to perform the stated on the website
promised service dependably
and accurately
The willingness of the service
provider to be helpful, be
prompt in providing services, The speed of helping customer
Responsiveness
and to respond to customers’ online or by telephone
requests, problems or
complaints
The knowledge and courtesy
of employees and their ability The excellent reputation and
to inspire trust and confidence high levels of trust based on
Assurance
– creating trust and confidence previous experiences with the
will gain the customers’ company
loyalty
Caring, individual attention
Employees’ high emphasis on
paid to customers by the
Empathy customer requests to achieve
service firm to meet each
higher satisfaction
customer’s demands properly.

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CONCEPT OF TQM

Total Quality Management, also known as TQM, is a comprehensive management approach to

achieving long-term success by satisfying customers. TQM can be implemented in all types of
organizations. Employees, regardless of their positions, can participate in TQM activities by
improving processes, products, services, and the culture in which they work.

A typical TQM management adopts an overview of quality and concentrates on preventing

product defects and process problems. The management team needs to change their own mindset
and encourage the team to do follow suit. Ideally, TQM integrates a quality culture and quality
discipline using effective communication tools.

The Four Levels of the Total Quality Management Evolution

How did TQM evolve through the years? Most professionals and organizations have witnessed the
evolution of TQM. It started with the inspection stage and evolved through inspection stages,
quality control, and quality assurance into what today is modern TQM.

Level 1. Inspection

This is the first and basic level of the TQM evolution. It includes measuring the characteristics of
a product and its specifications.

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Inspection focuses on the examination, measurement, testing, and assessment of the characteristics
of a product, service, or activity and compares them with the appropriate standards to assess its
conformity.

Level 2. Quality Control

Quality control focuses on the quality of the products.

Level 3. Quality Assurance

Quality assurance, also known as QA, focuses primarily on products and processes. QA activities
contain creating and maintaining procedures to ensure that the product is manufactured as
described in the procedures.

Level 4. Total Quality Management

TQM focuses on the entire organization as one and promotes the organization to use four main
stages in the evolution of TQM.

Elements of Total Quality Management

The highest quality level is composed of eight elements. Usually, organizations define these
elements as a part of their principles or core values. The implementation methods of elements
come from the teachings of quality leaders like P. B. Crosby, W. E. Deming, A.V. Feigenbaum, K.
Ishikawa, and J. M. Juran.

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I. Customer-Focused

Regardless of the product, the customer ultimately defines the level of the product quality. Hence,
organizations should listen to and define current and future customer needs and strive to exceed
these expectations. If customers are satisfied, what you did to improve your product quality was
very well worth it!

II. Total Employee Involvement

All employees should be working toward common objectives. Employees at all levels are the
essence of the organization, and their full involvement can magnify their abilities for the
organization’s benefit to improve processes, products, services, and company culture.

III. Process-Centered

A process consists of a set of activities by taking inputs and turning them into outputs. Usually,
TQM focuses on the process in order to improve it. Process steps are carried out according to
predefined instructions, which are controlled and monitored periodically so that any unexpected
defect can be easily found. With the process-centered approach of TQM, expected results are
achieved more efficiently.

IV. Integrated Systems

Every organization has a unique work culture, and achieving excellence in its products and
services is virtually impossible without fostering a good quality culture. The focus of TQM is to
connect different functions into an integrated system. This system combines business
improvement elements to continually improve and exceed the expectations.

V. Strategic and Systematic Approach

With this approach, an organization's vision, mission, and goals become achievable. Strategic
planning, or strategic management, incorporates the formulation of a strategic plan that integrates
quality as a core component.

VI. Continuous Improvement

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As part of the continuous improvement process, an organization must employ both analytical
techniques and creative thinking to enhance its competitiveness and performance in meeting
expectations.

VII. Fact-Based Decision Making

The performance of an organization can be measured using data on performance measures. As a

result of using TQM, an organization must constantly collect and analyze data to improve
decision-making accuracy, reach consensus, and make predictions based on historical data.

VIII. Communications

As an organization evolves through change, communication plays a crucial role in maintaining

morale and encouraging employees. Communications can focus on strategies, methods, and
timeliness.

The Four Ps and Three Cs – a Total Quality Management Model

This model is based on a comprehensive and scientific approach to TQM. It provides a simple
framework for excellent performance, covering all angles and aspects of an organization and its
operations.
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The Four Ps

The four Ps provide the “hard management necessities.” The four Ps of Planning,
Processes, and People are the keys to delivering quality products and services to the customers
and improving overall Performance:

1. Planning

Planning includes the development and deployment of policies and strategies, setting up
appropriate partnerships and resources, and designing with quality in mind.

2. Processes

Processes include understanding, management, design/redesign, quality management systems, and

continuous improvement.

3. People

People include managing human resources, culture change, teamwork, communications,

innovation, and learning.

4. Performance

Performance includes establishing a performance measure framework – a ‘balanced scorecard’ for

the organization, carrying out self-assessment, audits, reviews, and benchmarking.

The Three Cs

The three Cs – culture, communication, and commitment – provide “soft outcomes” for the TQM
model.

Do not underestimate the importance of the three Cs!

The TQM model is complete once “soft outcomes” are integrated into the four Ps framework, so
that the model can successfully move organizations forward:

1. Culture

Create values and ethics to support the development of a total quality culture and ensure that
creative and learning activities are developed and implemented.

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2. Communication

Communicate the vision, mission, policies, and strategies. Consistently promote communication
and collaboration.

3. Commitment

Participate personally and actively in the quality and improvement activities of your organization.

CONTRIBUTIONS /CONTRIBUTORS or GURUs OF TOTAL QUALITY

MANAGEMENT

Total quality management (TQM) is a set of opinions and ideas for improving
the quality of products or services, which widely called “management
philosophy”. Its main aims are to satisfy customers and survive in the market
Without doubt, quality experts (gurus) had the significant roles to expend and
transform the concept of quality from a mere technical system to a broader
body of knowledge known as total quality with management implications in
production Historically, TQM was first emerged by the contributions of
quality gurus, such as Deming and Juran in Japan after Second World War.
Then Crosby, Feigenbaum, Ishikawa, and others had developed this powerful
management technique for improving business quality within the
organizations. During the period 1980s to 1990s, many national and
international quality awards (QAs) have been established to provide guidelines
for implementing TQM based on the suggestions and theories of TQM gurus

Guru means a “respected teacher”, “spiritual leader”, “good person”, a

wise person who in his field has not only made a great contribution and
innovation, but also a large-scale revolution. People who have established
themselves and profiled philosophical trends in quality, are the gurus of quality
The gurus extensively made substantial contribution to quality management
by their theories in improving quality. TQM techniques and tools could be
innovated by these theories. As demonstrated in Table 1, each of these pioneers
provided foundational building blocks for a systematic method to focus on
total quality management .

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Deming worked with statistical sampling to improve quality and also

introduced the concept of "Variance” to the Japanese and a systematic
approach to problem solving which eventually was called the Plan, Do,
Check, Act or PDCA Cycle. Joseph Juran expanded the tool set available for
producing quality products and managing organization-wide quality by
introducing the Pareto Principle as an application of statistics to prioritizing
process improvements. Philip Crosby popularized the Cost of Quality concept.
Feigenbaum was the firs guru, who defined “Total Quality Control” as an
effective system for integrating the quality-development, quality-
maintenance, and quality-improvement efforts of the various groups in an
organization to enable marketing, engineering, production and service at the
most economical levels which allows for full customer satisfaction . Kaoru
Ishikawa is considered by many researchers to be the founder and first
promoter of the ‘Fishbone’ diagram (or Cause-and-Effect Diagram) for root
cause analysis and the concept of Quality Control (QC) circles.

These theorists are regarded as the key founders of TQM philosophy, and
the origin of TQM concept evolves mostly from their work.

Deming's Contribution and Principle

Dr. W. Edwards Deming has emerged as the most influential quru of
quality management in the United States and Japan, he is best known for the
“Deming Cycle”, his “Fourteen Points”, and “the Seven Deadly Diseases”.
Deming was graduated in engineering and physics at the University of
Wyoming and Yale University. He was influenced by Dr. Shewhart's
philosophical idea for quality in developing control chart and PDSA cycle
(Shewhart cycle), when he was working for Western Electric. Deming had
developed and adopted PDSA cycle (Shewhart cycle) to “clerical tasks” after
leaving Western Electric. During the period 1927 to early 1940, he had
pioneered the utilization of statistics and sampling methods successfully at the
U.S. Department of Agriculture. During Second World War, Deming was
hired by the War Department and the Census Bureau to implement control
charts and sampling techniques After war, he helped Japanese companies to
improve the quality of their products by his quality principles and guidance as
a consultant.
In early 1950s, Japanese products were burdened with defects and were
known as poor quality products with the product of other countries in contrast.
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He emphasized to Japanese that the most of the troubles in production are with
the “process” and “that statistics can be used to control that process” [23]. The
results of the consultancy of Deming was exceedingly positive to the products
and industries of Japan. He became as a hero there soon. To appreciate of
Deming's efforts in Japan, JUSE established the “Deming Prize” in 1951. He
was awarded “the Second Order Medal of the Sacred Treasure by Emperor
Hirohito” in 1960.
As mentioned earlier, Deming [9] developed the Shewhart cycle (PDSA) as
an important framework to lead improvement for quality and productivity, his
four steps for Improvement, or Plan-Do-Check-Act, are often called the PDCA
cycle, as demonstrated in Figure 1. Nowadays, “Deming's cycle” has been
extensively apply in the development and deployment of quality policies,
DMAIC (Six Sigma) and DMADV (DFSS) have added the rigour of project
life- cycle (PLC) to the implementation and close-out of Six Sigma projects,
RADAR (EFQM Excellence model) has been used for assessment of
organizational performance [25]. Furthermore, management system standards
such as ISO 9001 can improve the efficiency of the processes of the
organizations through “Plan-Do-Check-Act” (PDCA) methodology to achieve
successfully the satisfaction of customer and quality objectives [21].

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The PDCA cycle

Production viewed as a system

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Meanwhile, Juran drew “a graph with time on the horizontal axis and cost of
poor quality on the vertical axis”, to describe the zones an areas that belong
to the parts of “Juran's Trilogy”. As depicted in Figure 3, the graph illustrate
the three processes of the “Juran's Trilogy” are interrelated. The first zone is
“quality planning”, that planners should find the requirements of customers
by accurate information. Next zone is quality control planners have to design
a proper process to produce the product/s accordant to the needs of customers.
In the third zone of “Juran's Trilogy”, the planners turn the plans over to the
operating forces: “You run the process, produce the product features, and
meet the customers’ needs” [15].

Figure 3: The Juran trilogy diagram [15]

Juran viewed TQM as “fitness for use” or fitness for customer. On the other hand, he
believed like Deming that customer has to define quality, if the company wants to be
successful, it should use proper indicators to determine the needs of customers
accurately. And focusing on “fitness for use” helps the company to prevent the under or
over-specification of products and services [13], [11], [7]. Therefore, he believed

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quality has a direct relationship with the satisfaction of customers with the products or
services. He introduced “Ten Steps to Quality Improvement” for improving the
satisfaction of customer, theses steps are listed below [15]:

1. Build awareness of the need and opportunity for improvement;

2. Set goals for improvement;
3. Organize to reach the goals (establish a quality council, identify problems,
select projects, appoint teams, designate facilitators);
4. Provide training;
5. Carry out projects to solve problems;
6. Report progress;
7. Give recognition;
8. Communicate results;
9. Keep score, and;
10. Maintain momentum by making annual improvement part of the regular
systems and processes of the company”.

Crosby's Contribution and Principles

Philip Bayard Crosby is best known for his concept of “Zero Defects”,
he believed that an efficient quality management must be “based on prevention- based
system”, and claimed that mistakes can be happened because of lack of knowledge and
the attention of employees in the organization [6]. He emphasized when the quality
improvement can be happened that the management of the firm focuses more on
prevention by the attention and awareness of employees, reduction of the cost, the
emphasis on controls rather than the inspection efforts, and finally “Doing them right
the first time” . Crosby realized that the cost of not “doing things right the first time”
could be estimable. In production, “the price of nonconformance averages 40 percent
of operating costs” and the expenses of poor quality can be about 20% of revenues of a
average firm, “most of which could be avoided by adopting good quality practices”
He had experiences for many years to work at Martin Marietta and then, in the 1970s,
as Quality Director of ITT. By his valuable experiences, Crosby (1979) published his
first book, which was entitled “Quality is Free”. His book has emphasized that concept
of “Zero Defects” for quality improvement. He stressed “Zero Defects” as basis of
quality is not synonymous that the products or services quality must be “perfection”, its
meaning is the product or service must be exactly the same as specified requirements of
the customer and the supplier. In other words, “the customer deserves to receive exactly

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what the supplier has promised to produce”

Crosby stated that “quality is not comparative and that there is no such
thing as high quality or low quality, or quality in terms of goodness, feel, excellence
and luxury” [7]. According to his Zero Defects definition, Crosby described his 4
absolutes that are based on his TQM philosophy, these absolutes are listed below:

1. Quality is defined as “conformance to requirements”, (not “goodness” or

“elegance”);
2. Quality comes of the system that is based on prevention, (not appraisal): Prevention
can cause by good quality management (TQM practices);
3. Quality performance standard is is “Zero defects” not that is close enough. (not
“that’s close enough): Errors is not acceptable, and;
4. Quality measurement is the price of non conformance, (not index).
Also, Crosby emphasized the role of management for improving quality, he believed
80% of the quality problems of the organizations are belonged to the management.
Thus, Crosby recommended 14 steps to lead the companies as Deming and Juran
suggested some tips for improving quality, Oakland has summarized Crosby' 14 steps
as follows:
1. “Management commitment”: To Make clear that management is undertaken to
quality;
2. “Quality improvement team”: To improve quality of teams with representatives
from each department;
3. “Quality measurement”: To measure of performance for making sure that there is
quality improvement;
4. “The cost of quality”: To measure the quality cost of the company as a tool for
management;
5. “Quality awareness”: To promote the quality awareness and knowledge of
employees;
6. “Corrective action”: To provide a systematic method for problem solving;
7. “Zero defects action”: To have a strong commitment for the zero defects
program;
8. “Employee education”: To determine what kind of the trainings are needed to
increase quality for supervisor training;
9. “Zero Defects day”: To let all employes feel and touch the message of “Zero
Defects” (Do right things right time) every day;

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10.“Goal setting”: To let every body establish improvement goals at the workplace
for themselves and others;
11.“Error-cause removal”: To let properly all staffs communicate to the management
for describing existing problems face quality, and finding efficient solution for
problems;
12.“Recognition”: To appreciate those who have nicely done their duties regarding
quality;
13.“Quality councils”: To establish quality councils to communicate on a regular
basis, and;
14.“Do it over again”: To show the employees that quality improvement
is continuously.
Furthermore, Crosby specified the different levels of the quality management maturity,
which is useful to assess the degree of quality management maturity into the
organization. The five levels of quality management maturity are namely: Uncertainty,
awakening, enlightenment, wisdom and certainty. These stages can be used to assess
progress in a number of measurement categories such as management understanding
and attitude, quality organization status, problem handling, cost of quality as
percentage of sales, and summation of firm quality posture.

Feigenbaum's Contribution and Principles

Total quality control, known today as total quality management (TQM) is virtually
equivalent with Feigenbaum's name, and he was one of the foundations of modern
management and has been widely accepted as a viable operating philosophy in all
economic sectors. It could be developed by Feigenbaum’s work significant [8]. Dr.
Armand V. Feigenbaum was an American quality guru, his valuable ideas revealed by
his experiences working at General Electric (GE). During this period, he had
contributed for many years with world-class companies such as Hitachi and Toshiba
in Japan. He investigated quality procedures at these companies, and understood “total
approach to quality” is the best way to solve quality problems. He advocated the
inspection for quality control “after the fact rather than build it in at an earlier stage of
the process”. Feigenbaum adopted an approach for quality that was different from
Deming and Juran [24], his approach has a three-step to improving quality that are
included “quality leadership, quality technology, and organizational commitment”.
Feigenbaum was the first guru who introduced the concept of “Total Quality Control”
(TQC) first time, and published his first book “Quality Control Handbook” in 1951.

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This philosophy was adapted by the Japanese and the concept of “Company Wide
Quality Control” (CWQC) later. His philosophy is more on the “prevention-based
system by emphasis on product, service and process design and by streamlining the
source activities”.

Feigenbaum's principles describe that for manufacturing the product with high level
quality, TQC should be considered instead of the implementation of the production
quality control alone. These ideas and principles caused total quality movement that
the companies understood that responsibilities for quality are company-wide, and
stayed with the leadership hierarchy The fundamental ideas of Feigenbaum’s
systematic approach for quality as follows :
- “Quality is a company-wide process;
- Quality is what the customer says it is;
- Quality and cost are a sum, not a difference;
- Quality requires both individual and team zealotry;
- Quality is a way of managing;
- Quality and innovation are mutually dependent;
- Quality is an ethic;
- Quality requires continuous improvement;
- Quality is the most cost-effective, least capital-intensive
route to productivity, and;
- Quality is implemented with a total system
connected with customers and suppliers”.
Feigenbaum argued that the term “total quality” are related to broader issues such as
planning, organization and direction, and “quality assurance” cannot be able to improve
efficiently quality products, if it just focus on production process . Therefore,
Feigenbaum defined Total Quality (TQ) as “an effective system for integrating the
quality development, quality maintenance, and quality improvement efforts of the
various groups in an organization so as to enable production and service at the most
economic levels which allow customer satisfaction”, he emphasized “a system approach
to quality” or “TQC” as an efficient quality management is included four main steps, as
follows :
– “Setting quality standards;

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– Appraising conformance to these standards;

– Acting when standards are not met, and;
– Planning for improvement in these standards”.

Ishikawa's Contribution and Principles

Dr. Kaoru Ishikawa was a Japanese quality guru, who “pioneered quality management
processes in the Kawasaki shipyards, and in the process, became one of the founding
fathers of modern management”. Ishikawa is best known to introduce and develop
many quality tools like cause-and- effect diagrams (called fishbone or Ishikawa
diagrams) and the utilization of the “Seven QC tools”, he believed 95% of quality
problems can be solved by these tools. Thus, Ishikawa has been associated with the
development and advocacy of universal education in the seven QC tools, which are
namely:
- Pareto chart;
- Cause and effect diagram (Ishikawa diagram);
- Stratification chart;
- Scatter diagram;
- Check sheet;
- Histogram, and;
- Control chart.
Its “Fishbone” diagram was an effective method tool in reducing and preventing the
errors and mistakes in the organization. The effect or incident being investigated is
shown at the end of a horizontal arrow. Potential causes are then shown as labelled
arrows entering the main cause arrow. An example of a fishbone diagram is presented
in Figure 4.

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Figure 4: The cause and effect diagram or Fishbone Diagram

He was belonged to those Japanese gurus, who had eagerness to study new things from
Deming and Juran to improve quality products in Japan's industries, and his ideas
shaped by them. His role is mostly outstanding and significant to develop quality
management among other quality experts in Japan [1]. In addition, Ishikawa was
developed the concepts of “Quality Circles” (QC) that introduced by his book, “What
is Total Quality Control?” in Japan, that changed significantly the American “TQC” to
company “Wide Quality Control” (WQC) or TQM, that argued total quality control on
whole company instead of total quality control on products and services only [8].
Therefore, his thoughts and philosophies regarding the TQM can be described in the
following principles [14]:
• “Quality first-not short-term profits first;
• Customer orientation-not producer orientation;
• The next step is your customer-breaking down the barrier of
sectionalism;
• Using facts and data to make presentations-utilization of statistical
methods;
• Respect for humanity as a management philosophy, full participatory
management;
• Cross-functional management”.
Ishikawa justified on strongly about the proper use of problem solving tools in the
improvement of quality. His concept of the Quality Control (QC) circle was to bring
production workers, maintenance, design engineers and managers together in organized
meetings to solve problems. The quality control circles were critical in the complete

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root-cause analysis of any problem. The quality control circles were responsible for
diagnosing problems and developing permanent solutions for problems. Thus, he
stressed that every member of the organization is responsible to quality issues, and he
suggested Japanese companies to apply “Quality Circles”, in order to solve their quality
problems. Quality Circles” are a small number of employees (Usually is 5-10 staffs) that
discuss about quality problems of their workplace, by the investigation, identification of
problems, and finding solutions for quality problems.
In addition, he emphasize the importance of management to draw and show proper
“strategic goals” for improving quality, also his idea regarding “internal customer” was
interesting. Ishikawa argued customer is not a purchaser only, he defined “ customer is
next person in the process” . Likewise, Ishikawa recommended that the evaluation of
customer's requirements is a best way to foster “cross-functional cooperation”, and
“cross-functional teams” can be an appropriate method to specify and eliminate the
quality problems.

The field of quality management has evolved significantly over

the past several decades, thanks to the contributions of many quality gurus who have
shaped and influenced the field. These individuals have developed and introduced new
ideas, theories, and methods that have helped organizations improve their performance
and achieve their goals. In this blog post, we will highlight nine of the most important
quality gurus and their contributions to the field of quality management.

1. W. Edwards Deming: One of the pioneers of quality management, Deming is

known for his work in Japan after World War II, where he helped Japanese companies
improve their quality and productivity. He is best known for his "14 Points for
Management," which outline the key principles of quality management, and his
emphasis on the importance of statistical process control and continuous
improvement.
2. Joseph M. Juran: He is considered one of the pioneers of the modern quality
management movement and is known for his development of the "Juran Trilogy,"
which consists of three critical components of quality management: quality
planning, quality control, and quality improvement. He is also credited with
introducing the Pareto principle in the quality field, which states that 80% of the
effects come from 20% of the causes. Juran was also the author of several books on
quality management, which continue to be used as reference works in the field,
including Juran's Quality Handbook.

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3. Philip B. Crosby: Crosby is known for emphasizing the importance of

prevention over inspection in quality management. He introduced the concept of "zero
defects," which aims to eliminate defects and errors in a process or product. Crosby is
also known for his Four Absolutes of Quality: 1- The definition of quality is
conformance to requirements. 2- The system of quality is prevention.3- The
performance standard is zero defects. 4- The measurement of quality is the price of
non-conformance. Crosby also introduced the idea of "quality is free," which is the
notion that the cost of preventing defects is always lower than the cost of dealing with
defects after they occur.
4. Kaoru Ishikawa: Ishikawa is a Japanese quality management expert known for
developing the cause and effect diagram, also known as the "Ishikawa diagram" or
"fishbone diagram." This tool is used to identify the root causes of a problem and is a
critical tool in root cause analysis. Ishikawa is also known for emphasizing the
importance of involving all employees in the quality management
process. Ishikawa also introduced the concept of "total quality control," involving all
employees in the quality control process and using data and statistical analysis to drive
continuous improvement.
5. Shigeo Shingo - Shigeo Shingo was a Japanese industrial engineer and business
consultant. Shingo is known for his contributions to lean manufacturing, including
developing the "Toyota Production System." He emphasized the importance of
eliminating waste and increasing efficiency in the production process. Shingo is also
credited with introducing the concept of "poka-yoke," which prevents defects in a
product or process by designing it so that mistakes are difficult or impossible to make.
He also developed the Single Minute Exchange of Die (SMED) concept.
6. Armand V. Feigenbaum - Feigenbaum is known for developing the concept of
total quality control, which focuses on integrating all aspects of an organization's
operations to achieve quality. He also introduced the idea of the "cost of quality" as a
way to measure the impact of poor quality on an organization.
7. Walter Shewhart - Walter Shewhart is credited with developing the concept of
"statistical process control," which involves using statistical methods to monitor and
control manufacturing processes to produce goods of consistent quality. Shewhart also
introduced the idea of "control charts," which are graphical tools used to monitor
process performance over time and identify when a process is out of control. His ideas
have been widely adopted by industries worldwide and have played a significant role
in developing modern quality control techniques.
8. Taiichi Ohno - Taiichi Ohno was a Japanese industrial engineer and
businessman known for contributing to the Toyota Production System (TPS)
development. Ohno is considered the father of the TPS, a manufacturing methodology
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focusing on maximizing efficiency and minimizing waste. He is credited with

developing the "just-in-time" production method, which involves producing only the
amount of goods needed at a given time, and the "kanban" system. This visual
signalling system helps coordinate the flow of materials within a factory. Ohno's ideas
have been widely adopted by companies worldwide and have helped to transform the
way goods are produced.

9. Genichi Taguchi - Taguchi was a Japanese engineer and quality control expert
known for his contributions to the statistics and quality control field. He developed the
concept of "loss function," which measures the deviation of a product from its target
specification. He also introduced the idea of using "robust design" to create products
insensitive to variations in manufacturing processes. Taguchi's methods are widely
used worldwide to improve the quality of products and reduce manufacturing costs.

Conventional quality management or Traditional Quality management or

Traditional Approach Versus Total Quality Management

Comparison between TQM and traditional management

approach

Sr. DIMENSION/ATTRIBUT TOTAL TRADITIONA

No. ES/ CHARACTERISTICS QUALTIY L APPROACH
/CATEGORIES MANAGEMENT
APPROACH

1. Management Considers quality No compensation for

understanding attitude management as quality. Tend to blame
essential part of quality department for
company system quality problems
2. Quality organisation status Quality is through the Considers quality is
leader. Quality hidden in
managers on Board of manufacturing.
Directors Quality is not

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considered as integral
part of organization

3. Problem handling Emphasis on Problems are fought as

prevention of they occur fighting fire
problems. A structure approach
approach to identify
and solving the
problem
4. Quality improvement action Quality improvement No organisational
is a continuous activity
activity

5. Priority Quality is top most The first priority is

priority to profit

6. Focus Focus on customer Focus on management’s

satisfaction requirements

7. Organisation Networking across Hierarchical-

and among the Vertically
functions
8. Span of control Large span of control Short span of control
with authority almost and many layers of
pushed down to the authority
lowest level
9. Production Schedule Economy to time, Long production runs
just-in- time for low cost and high
production, quick efficiency
customer
10. Communication Conveyed with action Conveyed by slogan

11 Responsibility for quality With top management Delegated to

subordinates

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12. Perception of quality Quality is considered Quality is defined in

multidimensional and terms of single
the dimensions are dimensions, that is
customer oriented conformance to
specifications
13. Employee Employees are Emphasises on
motivated and are monolithic work
given significant role pattern. Opportunities
regardless of level to for participation does
better ways to work not exist

14. Work force Multi-skilled work Emphasis on division of

force with job rotation labour

15. Quality-productivity Consider high Contribution of quality

relationship correlation between in improving
the two forces productivity not
recognized
16 Ways of improving Changing corporate Improvement in
culture, increasing inspection and gauging
employee education,
use of process control
17 Keys to firm success Customer satisfaction +
and Production of
high quality goods
and services

CUSTOMER SUPPLIER FOCUS IN TQM

TQM is the way of managing for the future, and is far wider in its application
than just assuring product or service quality – it is a way of managing people
and business processes to ensure complete customer satisfaction at every stage,
internally and externally. TQM, combined with effective leadership, results in
an organization doing the right things right, first time.

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Customer
Supplier

The core of TQM is the customer-supplier interfaces, both externally and

internally, and at each interface lie a number of processes. This core must be
surrounded by commitment to quality, communication of the quality message,
and recognition of the need to change the culture of the organisation to create
total quality.

These are the foundations of TQM, and they are supported by the key
management functions of people, processes and systems in the organisation.

This section discusses each of these elements that, together, can make a total
quality organisation. Other sections explain people, processes and systems in
greater detail, all having the essential themes of commitment, culture and
communication running through them.

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What is quality?

A frequently used definition of quality is “Delighting the customer by fully

meeting their needs and expectations”. These may include performance,
appearance, availability, delivery, reliability, maintainability, cost
effectiveness and price. It is, therefore, imperative that the organisation knows
what these needs and expectations are. In addition, having identified them, the
organisation must understand them, and measure its own ability to meet them.

Quality starts with market research – to establish the true requirements for the
product or service and the true needs of the customers. However, for an
organisation to be really effective, quality must span all functions, all people,
all departments and all activities and be a common language for improvement.
The cooperation of everyone at every interface is necessary to achieve a total
quality organisation, in the same way that the Japanese achieve this with
company wide quality control.

Customers and suppliers

There exists in each department, each office, each home, a series of customers,
suppliers and customer- supplier interfaces. These are “the quality chains”,
and they can be broken at any point by one person or one piece of equipment
not meeting the requirements of the customer, internal or external. The failure
usually finds its way to the interface between the organisation and its external
customer, or in the worst case, actually to the external customer.
Failure to meet the requirements in any part of a quality chain
has a way of multiplying, and failure in one part of the system creates
problems elsewhere, leading to yet more failure and problems, and so the
situation is exacerbated. The ability to meet customers’ (external and internal)
requirements is vital. To achieve quality throughout an organization, every
person in the quality chain must be trained to ask the following questions

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about every customer-supplier interface:

Customers (internal and external)

• Who are my customers?

• What are their true needs and expectations?
• How do, or can, I find out what these are?
• How can I measure my ability to meet their needs and expectations?
• Do I have the capability to meet their needs
and expectations? (If not, what must I do to
improve this capability?)
• Do I continually meet their needs and expectations?
(If not, what prevents this from happening when the capability exists?)
• How do I monitor changes in their needs and expectations?

Suppliers (internal and external)

• Who are my internal suppliers?

• What are my true needs and expectations?
• How do I communicate my needs and expectations to my suppliers?
• Do my suppliers have the capability to measure and meet these needs and
expectations?
• How do I inform them of changes in my needs and expectations?
As well as being fully aware of customers’ needs and expectations, each
person must respect the needs and expectations of their suppliers. The ideal
situation is an open partnership style relationship, where both parties share and
benefit.

Poor practices

To be able to become a total quality organisation, some of the bad practices must
be recognised and corrected. These may include:

• Leaders not giving clear direction

• Not understanding, or ignoring competitive positioning

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• Each department working only for itself

• Trying to control people through systems
• Confusing quality with grade
• Accepting that a level of defects or errors is inevitable
• Firefighting, reactive behaviour
• The “It’s not my problem” attitude

The essential components of TQM – commitment & leadership

TQM is an approach to improving the competitiveness, effectiveness and

flexibility of an organization for the benefit of all stakeholders. It is a way of
planning, organising and understanding each activity, and of removing all the
wasted effort and energy that is routinely spent in organizations. It ensures the
leaders adopt a strategic overview of quality and focus on prevention not
detection of problems.

Whilst it must involve everyone, to be successful, it must start at the top with
the leaders of the organization.
All senior managers must demonstrate their seriousness and commitment
to quality, and middle managers must, as well as demonstrating their
commitment, ensure they communicate the principles, strategies and benefits
to the people for whom they have responsibility. Only then will the right
attitudes spread throughout the organization.

A fundamental requirement is a sound quality policy, supported by plans and

facilities to implement it. Leaders must take responsibility for preparing,
reviewing and monitoring the policy, plus take part in regular improvements of
it and ensure it is understood at all levels of the organization.

Effective leadership starts with the development of a mission statement,

followed by a strategy, which is translated into action plans down through the
organization. These, combined with a TQM approach, should result in a quality
organization, with satisfied customers and good business results. The 5

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requirements for effective leadership are:

• Developing and publishing corporate beliefs, values and objectives, often

as a mission statement
• Personal involvement and acting as role models for a culture of total quality
• Developing clear and effective strategies and supporting plans for
achieving the mission and objectives.
• Reviewing and improving the management system
• Communicating, motivating and supporting people and encouraging
effective employee participation
The task of implementing TQM can be daunting. The following is a list
of points that leaders should consider; they are a distillation of the various
beliefs of some of the quality gurus:

• The organisation needs a long-term commitment to continuous

improvement.
• Adopt the philosophy of zero errors/defects to change the culture to
right first time
• Train people to understand the customer/supplier relationships
• Do not buy products or services on price alone – look at the total cost
• Recognise that improvement of the systems must be managed
• Adopt modern methods of supervising and training – eliminate fear
• Eliminate barriers between departments by managing the process –
improve communications
and teamwork

• Eliminate goals without methods, standards based only on

numbers, barriers to pride of workmanship and fiction – get
facts by studying processes
• Constantly educate and retrain – develop experts in the organisation
• Develop a systematic approach to manage the implementation of TQM

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Culture change

The failure to address the culture of an organisation is frequently the reason

for many management initiatives either having limited success or failing
altogether. Understanding the culture of an organisation, and using that
knowledge to successfully map the steps needed to accomplish a successful
change, is an important part of the quality journey.
The culture in any organisation is formed by the beliefs, behaviours,
norms, dominant values, rules and the “climate”. A culture change, e.g., from
one of acceptance of a certain level of errors or defects to one of right first
time, every time, needs two key elements:
• Commitment from the leaders
• Involvement of all of the organization’s people
There is widespread recognition that major change initiatives will
not be successful without a culture of good teamwork and cooperation at all
levels in an organisation, as discussed in the section on People.

The building blocks of TQM: processes, people, management systems and

performancemeasurement

Everything we do is a Process, which is the transformation of a set of inputs,

which can include action, methods and operations, into the desired outputs,
which satisfy the customers’ needs and expectations.
In each area or function within an organisation there will be many processes
taking place, and each can be analysed by an examination of the inputs and
outputs to determine the action necessary to improve quality.
In every organisation there are some very large processes, which are
groups of smaller processes, called key or core business processes. These must
be carried out well if an organisation is to achieve its mission and objectives.
The section on Processes discusses processes and how to improve them, and
Implementation covers how to prioritise and select the right process for
improvement.

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Products

The only point at which true responsibility for performance and quality can lie
is with the People who actually do the job or carry out the process, each of
which has one or several suppliers and customers.

An efficient and effective way to tackle process or quality improvement is

through teamwork. However, people will not engage in improvement
activities without commitment and recognition from the organisation’s
leaders, a climate for improvement and a strategy that is implemented
thoughtfully and effectively. The section on People expands on these issues,
covering roles within teams, team selection and development and models for
successful teamwork.

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An appropriate documented Quality Management System will help an

organisation not only achieve the objectives set out in its policy and strategy,
but also, and equally importantly, sustain and build upon them. It is imperative
that the leaders take responsibility for the adoption and documentation of an
appropriate management system in their organisation if they are serious about
the quality journey. The Systems section discusses the benefits of having such
a system, how to set one up and successfully implement it.

Once the strategic direction for the organisation’s quality journey has been set,
it needs Performance Measures to monitor and control the journey, and to
ensure the desired level of performance is being achieved and sustained. They
can, and should be, established at all levels in the organisation, ideally being
cascaded down and most effectively undertaken as team activities and this is
discussed in the section on Performance.

BENEFITS AND COSTS OF TQM

ADVANTAGES / BENEFITS OF TQM

The advantages of adopting TQM compared to conventional quality systems are

numerous and some of them are outlined below:

1) TQM helps to focus clearly on the needs of the market

The traditional approach to quality control focuses on the technical details of a
product so as to satisfy the customer. However, the customer longs for better
satisfaction, which is generally overlooked in the traditional approach. The needs
change from person to person and also from place to place. As TQM focuses on the
concept of universality, it tries to abstract the satisfaction perceptions of market and
thus helps the organisation to identify and meet the requirements of the market in a
better way.

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2) TQM facilitates to aspire for a top quality performer in every sphere of

activity
It is a well accepted fact that the negative attitudes of employees and non
participative culture of the organisation pose the greatest hurdle to organisation’s
success, growth and prosperity. TQM emphasizes on bringing about attitudinal
and cultural change through promotion of participative work culture and effective
team-work. This serves to satisfy the higher team-work and the higher human needs
of recognition and self-development and enhances employee interest in the job. The
employee’s performance, thus, is not restricted to the product or service areas but
reflects in other spheres as well.
3) It channelises the procedures necessary to achieve quality performance
Quality in its true sense can not be achieved instantly. It requires a systematic a long-
term planning and strategic approach by focusing on defining the quality policies,
goals and objectives, and communicating these properly to one and all in the
organisation adopting Statistical Quality Control (SQC), and Statistical Process
Control (SPC) techniques and developing and using a system of evaluation, the
organisations can channelise their efforts to achieve the desired and objective quality
performance.
4) It helps examine critically and continuously all processes to remove non-
productive activities and waste:
The organisation always aims at improving productivity as it leads to reduction in cost
resulting in increase in profitability. The efforts in this direction are contributed
because of the formation of quality improvement teams which meet regularly and
through a systematic approach which tries to remove non-productive activity. A
continuous effort to identify the problems and resolve them helps to reduce the waste.
The culture of well being thus improves house keeping, cost effectiveness and safety.
5) It gears organisations to fully understand the competition and develop an
effective combat strategy.
The dynamic changes in the global market and the open market policies adopted by
a large number of organisations has resulted in increased competition and for many
organisations, survival has become the key issue. It is essential for organisations today
to understand the competition and develop and adopt suitable strategies to meet the
challenge. As TQM helps to understand the pulse of the customer and thus the market
it gives an edge to the organisation to meet the competition.

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6) It helps to develop good procedure for communication and acknowledging

good work
Improper procedures and inadequate communication is yet another base of many
organisations, which result in misunderstanding confusion, low productivity,
duplication of efforts, poor quality, low morale and so on. TQM brings together
members of different levels of management thereby providing an effective
communication and interaction.
7) It helps to receive the process need to develop the strategy of never ending
improvement. Quality improvement efforts cannot be restricted to any time period.
They need to be continuous to meet the dynamic challenges. TQM emphasises on
continuous and periodic review so as to make the required challenges.

The tangible and intangible benefits of TQM are as presented below:

Tangible gains Intangible gains
- Better product quality - Effective team work
- Productivity improvement - Enhancement of job interest
- Reduced quality cost - Improvement in human relations and
work area morale
- Increased market - Participative culture
- Increased profitability - Customer satisfaction
- Reduced employee grievances - Improved communication
- Enhanced problem solving capacity
- Improved corporate health and
character of the company
- Better company image

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Costs of TQM

QUALITY COST ANALYSIS

Quality costs are the costs associated with preventing, finding, and correcting
defective work. These costs are huge, running at 20% - 40% of sales. Many of these
costs can be significantly reduced or completely avoided. One of the key functions of
a Quality Engineer is the reduction of the total cost of quality associated with a
product.
Here are six useful definitions, as applied to software products.

Prevention Costs

Costs of activities that are specifically designed to prevent poor quality.

Examples of “poor quality” include coding errors, design errors, mistakes in the
user manuals, as well as badly documented or unmaintainably complex code.
Some other examples of prevention costs are, cost of new product development
and review, quality planning, supplier capability surveys, process capability
surveys, process capability evaluations, quality improvement projects, quality
education and training.
Note that most of the prevention costs don’t fit within the Testing Group’s
budget. This money is spent by the programming, design, and marketing staffs.

Appraisal Costs

Costs of activities designed to find quality problems, such as code inspections

and any type of testing. Design reviews are part prevention and part appraisal.
To the degree that you’re looking for errors in the proposed design itself when
you do the review, you’re doing an appraisal. To the degree that you are
looking for ways to strengthen the design, you are doing prevention.

Failure Costs

Costs that result from poor quality, such as the cost of fixing bugs and the cost
of dealing with customer complaints.

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Internal Failure Costs

Failure costs that arise before your company supplies its product to the customer. Along
with costs of finding and fixing bugs are many internal failure costs borne by groups
outside of Product Development. If a bug blocks someone in your company from doing
her job, the costs of the wasted time, the missed milestones, and the overtime to get
back onto schedule are all internal failure costs.
For example, if your company sells thousands of copies of the same program, you will
probably print several thousand copies of a multi-colour box that contains and describes
the program. You (your company) will often be able to get a much better deal by
booking press time with the printer in advance. However, if you don’t get the artwork to
the printer on time, you might have to pay for some or all of that wasted press time
anyway, and then you may have to pay additional printing fees and rush charges to get
the printing done on the new schedule. This can be an added expense of many
thousands of rupees.
Including costs like lost opportunity and cost of delays in numerical
estimates of the total cost of quality can be controversial. Some examples of internal
failure costs are scrap, rework, re-inspection, retesting, material reviews and down
grading.

External Failure Costs

Failure costs that arise after your company supplies the product to the customer, such as
customer service costs, or the cost of patching a released product and distributing the
patch. External failure costs are huge. It is much cheaper to fix problems before
shipping the defective product to customers.
Some of these costs must be treated with care. For example, the cost of public relations
efforts to soften the publicity effects of bugs is probably not a huge percentage of your
company’s PR budget. You can’t charge the entire PR budget as a quality-related cost.
But any money that the PR group has to spend to specifically cope with potentially bad
publicity due to bugs is a failure cost. Some examples of external failure costs are the
cost of processing customer complaints, customer returns, warranty claims and product
recalls.
The sum of costs: Prevention + Appraisal + Internal Failure + External Failure.

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Examples of Quality Costs Associated with Software Products

Prevention Appraisal Internal Failure External Failure

Staff training Design review Bug fixes Technical support calls

Requirements
Code inspection Regression testing Preparation of support
analysis
answer books
Early prototyping
Glass box testing Wasted in-house user
time Investigation of
Fault-tolerant design customer complaints
Black box testing Wasted tester time
Defensive programming Refunds and recalls
Training testers Wasted writer time
Usability analysis Coding / testing of interim
Beta testing Wasted marketer time
bug fix releases
Clear specification
Test automation Wasted advertisements.
Shipping of updated product
Accurate internal
Usability testing Direct cost of late
documentation Added expense of supporting
shipment.
Pre-release out- multiple versions of the
Evaluation of the
of- box testing by Opportunity cost of product in the field
reliability of
development tools customer service late shipment.
PR work to soften drafts of
(before buying them) staff harsh reviews
or of other potential
components of the

Product Lost sales

Lost customer goodwill

Discounts to resellers to
encourage them to keep
selling the product

Warranty costs

Liability costs

Government

investigations [Penalties]

All other costs imposed by law

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QUALITY AWARDS AND GUIDELINES

What Is A Quality Award?

A Quality Award is a formal recognition of outstanding performance that demonstrates
a commitment to continuous improvement, innovation and customer satisfaction.
These awards recognize organizations that consistently exceed expectations regarding
quality, service delivery and responsiveness.
Various Quality Award programs are available to all types of organizations, including
governments, not-for-profits, private companies and public sector entities.
Most Famous Performance Excellence Models
These are some of the most popular quality awards or performance excellence models.

1. European Excellence Award (EFQM)

2. Excellence Canada
3. ASQ International Team Excellence Award (ITEA)
4. Malcolm Baldrige National Quality Award (MBNQA)
5. Deming Prize

Each of these models uses a different set of criteria to evaluate organizations.

However, each one shares common elements such as:

• Demonstrated leadership skills

• An emphasis on process approach and continuous improvement
• A focus on customer orientation
• Commitment to employee involvement
• Value creation through innovation
• Focus on strategic planning and fact-based decision making
• Consistent results (financial and non-financial)
All these models also share similar characteristics. For example:

• Their assessments are made independently

• They require organizations to submit objective evidence of their
performance
• They are not restricted to any particular industry
• They are open to all types of organizations
• They measure performance against clearly defined standards

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Let's briefly look at each of these models:

1. European Excellence Award (EFQM)
Founded in 1991, EFQM was developed to help European businesses improve their
performance. It has been widely adopted throughout Europe and beyond. EFQM
assesses the performance of organizations in two broad categories: Enablers and
Result. Both of these categories have equal weightage in the final assessment.
Enabler category contains Leadership, People, Policy Strategy, Partnership and
Resources, and Processes.
Result category contains People Results, Customer Results, Society Results and Key
Performance Results.

2. Excellence Canada
Founded in 1992 as the National Quality Institute(NQI), it was renamed Excellence
Canada in 2011. It's now known for its expertise in helping organizations improve their
customer experience.
Canada Awards for Excellence aims to recognize outstanding achievements by
organizations across Canada.
For an organization to be eligible for the award, they need to show exceptional
performance in the respective category: Excellence, Innovation and Wellness, Healthy
Workplace, Mental Health at Work and Financial Wellness.

3. ASQ International Team Excellence Award (ITEA)

The ASQ ITEA is the global performance recognition program in the field of quality
and organizational excellence best practices. This is a team award. Teams from across
the world present their quality improvement projects to compete for this award.

4. Malcolm Baldrige National Quality Award (MBNQA)

The Malcolm Baldrige National Quality Program was founded in 1987. The program
was named after Malcolm Baldridge, who served as U.S. Secretary of Commerce
under President Ronald Reagan.
This award is given out by the United States Department of Commerce every year.
Three MBNQA awards can be given annually in these six categories:

1. Manufacturing
2. Service Company
3. Small Business
4. Education
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5. Healthcare
6. Non-profit
Recipient selection is based on achievement and improvement across seven key areas
called the Baldrige Criterion for Performance Excellence.

1. Leadership
2. Strategy
3. Customers
4. Measurement, analysis, and knowledge management
5. Workforce
6. Operations
7. Results.
5. Deming Prize
In 1951, Deming Prize was founded to recognize Dr. Deming's contributions to Japan's
post–World War II economic recovery efforts. It's an award for companies that achieve
outstanding results in the field of Total Quality Management (TQM).

It recognizes both individuals who contribute to the field of Total Quality

Management (TQM) and companies that have successfully implemented TQM.
Unlike other awards, there is no limit to the total number of people/organizations who
may win the Prize. Organizations scoring above the minimum threshold for each
category (passing) will receive the Deming Award.
There are four categories in Deming Prize:

• The Deming Prize for Individuals

• The Deming Distinguished Service Award for Dissemination and
Promotion (Overseas)
• The Deming Prize
• The Deming Grand Prize (former Japan Quality Medal).
The Union of Japanese Scientists and Engineers (JUSE) administers this program.

Other National Quality Awards

A national quality award program is usually part of an overall strategy for making a
nation's companies more globally competitive. These awards are typically given by
governments (such as ministries) or non-profits with governmental ties. Here is a list of
the most notable quality awards.

• Australian Business Excellence Awards

• China Quality Award

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• Dubai Government Excellence Award

• Dutch Quality Assessment (Netherlands)
• Indonesian Quality Award
• Iran National Quality Award
• King Abdulaziz Quality Award (Saudi Arabia)
• Korean National Quality Management Award (South Korea)
• Prime Minister Quality Award (Pakistan)
• Rajiv Gandhi National Quality Award (India)
• Singapore Business Excellence Awards
•
•

ISO -Introduction
Since its inception the International Organization for Standardisation has been issuing
product standards as well as system standards. For the first time the International
Organization issued Quality system standard in 1987 under the title: ISO 9000 Series
of International Standards on Quality Management Systems. These standards are
revised periodically. In this series a total of 20 standards have been issued till
date, out of which only three i.e. 9001,9002,9003 are contractual standards against
which any organization is certified and all other standards are guidelines for some
purpose or other. There is no significance of the figure 9000. When these standards
were issued the International Organization had already issued over 8000 standards
and they wanted to use a new series for the first ever Quality Management System
(QMS) ,hence ISO 9000. ISO 9000 standards are generic standards which are neither
industry specific nor product specific. These standards specify basic quality system
requirements. Quality system requirements are complementary to product
specifications or requirements as laid down in the product standards or as specified
by the customer/market. ISO 9000 Standards have proved to be most popular of all
the standards and have been adopted by majority of countries worldwide including all
developed countries. The reason for their popularity is that these are very flexible,
adaptable and user-friendly in implementation. These standards lay down basic
requirements for quality system but do not specify how these should be implemented.
It is left to the discretion of the organization concerned as to how they implement
keeping in view their resources, constraints add work environment.

PREPARED BY C.PRASANTHI, ASST. PROF., MBA,MCom

TOTAL QUALITY MANAGEMENT NOTES

The first standard ISO 9000 is in four parts.

Part 1 is guidelines for selection and use - lay down Principal Concepts, role of
Documentation since it is fully documented system and describes Quality
System situations.
Part 2 consists of generic guidelines for application of ISO 9001, ISO 9002 and
ISO 9003.
Part 3 provides guidelines for application in software companies and
Part 4 is for Dependability Programme Management.
ISO 9001, 9002 and 9003 are the contractual standards. These are the only standards
against which any organization is certified depending on its area and scope of
operations as under :
ISO 9001 : Mode1 for quality assurance in design, development, production,
installation and servicing.
ISO 9002 : Model for quality assurance in production, installation and servicing.
ISO 9003 : Model for quality assurance in final inspection and testing stage.
ISO 9004 : Model for quality assurance to achieve sustained success and continual
improvement in an organization performance.
ISO 9000 is a set of international standards for quality management systems
that provide guidelines for organizations to ensure that their products and services
consistently meet customer requirements and that quality is continually
improved. It is designed to be applicable to any organization, regardless of its size,
type, or location. The ISO 9000 family of standards consists of several individual
standards, including:
ISO 9001 : 2015 - the most widely used standard that provides the
requirements for a quality management system;
ISO 9004 : 2018 - provides guidance on how to continually improve the
performance of an organization;

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TOTAL QUALITY MANAGEMENT NOTES

The main principles of the ISO 9000 series of standards are:

• Customer focus
• Leadership
• Engagement of people
• Process approach
• Improvement
• Evidence-based decision making
• Relationship management
Organizations that meet the requirements of ISO 9001:2015 are certified by a third-
party certification body. This certification is evidence that the organization has
a well-established quality management system in place and is committed to
continuous improvement.
Benefits of Implementing ISO 9000
The benefits of implementing an ISO 9000 quality management system include:
• Improved customer satisfaction
• Increased efficiency and effectiveness
• Improved communication within the organization
• Better risk management
• Increased competitiveness
• Enhanced reputation and credibility
The implementation of an ISO 9000 quality management system can bring numerous
benefits to an organization.
Improved customer satisfaction: By focusing on meeting customer
requirements and continually improving quality, organizations can increase
customer satisfaction and loyalty.
Increased efficiency and effectiveness: The use of a process-based approach and
continuous improvement principles can help organizations streamline processes,

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TOTAL QUALITY MANAGEMENT NOTES

reduce waste and errors, and increase efficiency and effectiveness.

Improved communication: ISO 9000 emphasizes the importance of clear and
effective communication within the organization, which can lead to improved
collaboration and teamwork.
Better risk management: The process approach and continuous improvement
principles of ISO 9000 can help organizations identify and mitigate potential risks,
leading to improved decision making and reduced risk of negative consequences.
Increased competitiveness: ISO 9000 certification can enhance an
organization’s reputation and credibility, making it more attractive to customers
and suppliers, and providing a competitive advantage in the marketplace.
Enhanced reputation and credibility: ISO 9000 certification is widely recognized
and respected, and can demonstrate to customers, suppliers, and stakeholders that an
organization is committed to quality and continuous improvement.
Improved employee motivation: The engagement of people principle of ISO 9000
recognizes the importance of involving and empowering employees in the quality
management process. This can lead to increased job satisfaction, motivation, and
engagement.
MALCOLM BALDRIGE NATIONAL QUALITY AWARD (MBNQA)

Established by the U.S. Congress in 1987, the Malcolm Baldrige National Quality
Award (MBNQA) recognizes United States companies that successfully implement
quality management systems. The award not only shines a light on the achievements of
a single company, but also raises awareness of the importance of quality management.
First awarded by President Ronald Reagan near the end of this time in office, the
award ranks as the highest presidential honor an organization can receive for
performance excellence.
Six Categories for MBNQA Awards
Winners of an MBNQA can receive the award in one of six categories. They include:

• Manufacturing
• Service Company

PREPARED BY C.PRASANTHI, ASST. PROF., MBA,MCom

TOTAL QUALITY MANAGEMENT NOTES

• Small Business
• Education
• Healthcare
• Nonprofit

Founded in February 1988, the Baldrige Foundation oversees the awards program. The
foundation states that it follows the guidelines set down in Congress for the MBNQA,
which are to identify and recognize role-model businesses, establish criteria for
evaluating improvement efforts, and disseminate and share best practices.
Who Was Malcolm Baldrige?
Malcom Baldrige served as Secretary of Commerce under President Reagan. His tragic
death helped bring congressmen from both national parties together to establish the
award that bears his name.
To understand the award, it’s important to understand the context. Starting in the 1970s
and into the 1980s, Asian manufacturers, especially Japanese electronics and
automobile producers, began to outshine U.S. companies in the area of quality. Many
members of Congress, most notably Rep. Dan Fuqua of Florida, supported creation of
a national award for quality to spur companies to make improvements in this key area.
However, Congress did not vote on Fuqua’s bill in 1986 to establish the award. Then,
in 1987, Baldrige died in an accident. A native of Nebraska, Baldrige had worked in
rodeos his entire life. On July 25, 1987, at the age 64, Baldrige died from injuries
sustained at a rodeo at Jack Roddy Ranch in Northern California when the horse he
was riding fell on him while he was participating in a calf-roping competition.
While even those in business today may not remember Baldrige, he was one of the
most beloved public officials in the Reagan Administration. His policies, including
trade policies he helped develop with China, India, and the Soviet Union, helped spark
immense growth in the U.S. economy.
Well respected around the world for his dedication to quality management, Baldridge’s
death spurred Congress to create the Malcolm Baldrige National Quality Award.
The 7 MBNQA Criteria
While as many as three awards can be given each year in the six categories, that does
not always happen. Nominees are judged by an independent board. Only those who
meet stringent criteria are considered for an award. The board considers each based on
achievements in seven areas. Collectively, these areas are known as the Baldrige
Criteria for Performance Excellence.
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The seven areas of criteria include:

• Leadership: How well leaders perform for the organization and how well the
organization performs for the community.
• Strategy: The company’s success in planning and implementing strategic goals.
• Customers: How well the company meets the needs of customers and
establishes long-term relationships with them.
• Measurement, analysis, and knowledge management: The use of data-driven
decisions to drive performance.
• Workforce: The empowerment and level of involvement of an organization’s
workforce.
• Operations: The use of process improvement to make changes in operations.
• Results: A measure of how well the company did against competitors, as well as
in customer satisfaction, finance, human resources, supplier and partner
performance, operations, social responsibility, and governance.

Reagan awarded the first MBNQAs in November 1988, near the end of his eight years
as president. That year’s recipients were Motorola, Inc., Westinghouse Electric
Corporation Commercial Nuclear Fuel Division and Globe Metallurgical Inc. (now
Globe Specialty Metals, Inc.)
Reagan said of the award, “America’s economic strength depends on industry’s ability
to improve productivity and quality and to remain on the cutting edge of technology.
And that’s why the Malcolm Baldrige National Quality Award is so important.”
EUROPEAN FOUNDATION FOR QUALITY MANAGEMENT(EFQM)

The EFQM was founded in 1988 as a non-profit organisation. The organisation was
established as a response to the growing interest in Total Quality Management (TQM)
across Europe. Since its inception, the EFQM has played a major role in promoting
excellence in organisational management, both in Europe and around the world. It does
this through various activities such as developing and promoting the EFQM Excellence
Model, which provides a framework for assessing and improving organisational
performance. The EFQM also offers training, consulting, and assessment services to
help organisations implement and improve their management systems. Additionally,
the EFQM hosts events and conferences to share best practices and connect
organisations with one another. Ultimately, the EFQM seeks to help organisations
achieve sustainable success through a focus on excellence and continuous
improvement.

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TOTAL QUALITY MANAGEMENT NOTES

EFQM Framework
The EFQM Model's strategy orientation, along with its emphasis on operational
performance and results orientation, makes it the perfect foundation for evaluating the
coherence and alignment of an organisation's future goals in relation to its existing
working practices and its solutions to problems and challenges. The EFQM Model
structure is built on the straightforward but effective logic of posing the following three
questions:
• "Why" does this company exist? What function does it serve? Why choose
this specific strategy? (Direction).
• "How" does it plan to fulfil its purpose and implement its strategy?
(Execution).
• "What" exactly has it accomplished thus far? Tomorrow, "What" does it hope
to accomplish? (Results).

PREPARED BY C.PRASANTHI, ASST. PROF., MBA,MCom

TOTAL QUALITY MANAGEMENT NOTES

PREPARED BY C.PRASANTHI, ASST. PROF., MBA,MCom