Please read the pages and make a summary of them Also you will put your comments and ideas about the topic It is what you understand You must prepare neat the summary
Please read the pages and make a summary of them Also you will put your comments and ideas about the topic It is what you understand You must prepare neat the summary
Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment
Section: Chapter Questions
Problem 1CE
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Please read the pages and make a summary of them
Also you will put your comments and ideas about the topic
It is what you understand
You must prepare neat the summary
Transcribed Image Text:4
CHAPTER ONE The Total Quality Approach to Quality Management
CHAPTER ONE The Total Quality Approach to Quality Management
5
must be improved, continually and forever. What
sidcred cxcellent today may bec just mediocre tomorrow.
Consequently, "good enough" is never good enough.
Another way to understand total quality as a concept is
shown in l'igure 1.2. Notice that the first part of the defi-
nition in Figure 1.2 explains the what of total quality: the
second part explains the how. In the case of total quality, the
how is important because it is what separates this approach
to doing business from all of the others.
The total in total quality indicates a concern for quality
a time line that shows some of the major events in the evolution
of the total quality movement since the days of Taylor. Taylor is
now known as "the father of scientific management"
The most fundamental aspect of scientific manage-
ment is the separation of planning and execution. Although
the division of labor spawned tremendous leaps forward in
productivity, it virtually eliminated the old practice of one
highly skilled individual performing all the tasks required
to produce a quality product. In a sense, that individual was
CEO, production worker, and quality controller all rolled
cannot survive, much less thrive, unless they outperform
the competition in proving superior value. And quality is an
essential ingredient in superior value (quality. cost, service).
The individual characteristics relating to total quality shown
in Figure 1.2 are explained later in this chapter.
con-
Customer
Focus
The Historic Development of Total Quality
The total quality movement had its roots in the time and motion
studies conducted by Frederick Taylor in the 1920s. Table 1.l is
in the broadest sense-what has come to be known as the
"Big Q" Big Q refers to quality of products, services, people,
processes, and environments. Correspondingly, "Little Q*
refers to a narrower concern that focuses on the quality of
one of these elements or individual quality criteria within
an individual element.
TABLE 1.1 100 Years of Selected Historic Milestones in the Globai Quality Movement
Measures
Реople
Processes
1908
1924
• Continual
improvement
• "Good enough" is
never good enough How Is Total Quality Different?
• Statistical process
• Quality is built-in
control
Ford attains perfect
part interchangeability,
eliminating the need
for skilled craftsmen.
Time req'd. for a Ford
complete a Ford Fitter's "Assembler" to complete his.
assigned task: 2.3 minutes.
Shewhart identifies
Prior to 1906-1908
• Benchmarking
• Quality is expected,
not inspected
• Employees are
empowered
causes of process
variation as common
1931
All autos assembled by
skilled craftsmen called
"Fitters." Time req'd. to
and special, and
develops the statistical
process control (SPC)
Shewhart publishes
his book Economic
Control of Quality of
• Quality tools
What distinguishes the total quality approach from tra-
ditional ways of doing business can be found in how it is
achieved. The distinctive characteristics of total quality are
liese: strategically based, custuuei fucus (interLal and ex
ternal), obsession with quality, use of the scientific approach
in decision making and problem solving, long-term com-
mitment, teamwork, continual process improvement, bot-
tom-up education and training, freedom through control,
unity of purpose, and employe involvement and empow-
erment, all deliberately aimed at supporting the organiza-
tional strategy. The underlying concept that drives the need
for total quality is competitiveness. Although pride of prod-
uct (or scrvice) is a philosophical driver of the total quality
concept-organizations that produce a product or provide a
service should want it to represent them in a way they can be
proud of-the practical driver is competitiveness. In today's
globally competitive business environment, organizations
FIGURE 1.1 Three-Legged Stool of Total Quality.
task was 8.56 hours.
chart.
Manufactured Praducts.
An easy way to grasp the concept of total quality is
to consider the analogy of a three-legged stool, as shown
in Figure 1.1. The seat of the stool is customer focus. This
means with total quality the customer is in the "driver's
seat" as the primary arbiter of what is acceptahle in terms
of quality. Each of the three legs is a broad element of the
total quality philosophy (i.e., measures, people, and pro-
cesses). The "measures" leg of the stool makes the point that
quality can and must be measured. The "people" leg of the
stool makes the point that quality cannot be inspected into
a product or service. Rather, it must be built in by people
who are empowered to do their jobs the right way. The
"processes" leg of the stool makes the point that processes
1906
1913
1927
1939
Cadilac achieves
perfect interchan-
geability of parts.
Ford introduces the
moving assembly line,
reducing the Assembler's of his ideas to management
task time to 1.9 minutes
Deming meets Shewhart,
and sees the relevance
Start of World War II
1941
1946
1950
1960s & 1970s
Deming teaches SPC
to American wartime
production workers.
SPC widely used.
SPC fades in America
as pent-up demand for
manufactured goods the Toyota Production System U.S. loses some market
seerms boundless.
Eiji Toyoda & Talichi
Ohno start development of from Western manufacturers.
Japan captures market share
(TPS). Continues to this date.
segments completely.
1945
1950
1954
1980
Deming trains hundreds of
Japancse enginecra, managero, management courses
executives, and scholars in
SPC and quality concepts.
Juran conducts quality
NBC Airs TV documentary,
"If Japan Can, Why Can't We?
Brings attention to Japanese
success with quality and to
Deming. American industry
begins to learn from Japan.
End of World War I
What It Is
in Japan.
Total quality is an approach to doing business that attempts to maximize the
competitiveness of an organization through the continual improvement af the quality
of its products, services, people, processes, and environments.
2010
How It Is Achieved
TOM/Lean/Six Sigma
generally acknowledged
The total quality approach has the following characteristics:
• Strategically based
• Customer focus (internal and external)
• Obsession with quality
• Scientific approach to decision making and problem solving
• Long-term commitment
• Teamwork
• Continual improvement of people, pracesses, products, services, and environments
• Education and training
• Freedom through control
• Unity of purpose
• Employee involvement and empowerment
• Peak performance as a top priority
1981
1985
1988
worldwide as the
1993
Ford and GM invite
Deming to speak
to executives. Ford
listened better than GM. American organizations.
Beginning of adoption
of total quality
management by
U.S. Dept. of Defense
endorses TQM, causing
DoD contractors
to follow suit.
management system of
the twenty-first century, and are
taught in U.S. colleges practiced by organizations
across the planet.
TOM is widely
and universities.
1982
1987
1990
2000
2020
Deming publishes
Quality, Productivity,
and Competitive
Position, his philosophy Motorola introduces Six
of management based Sigma as a more powerful Machine That Changed
on his "Fourteen Points."
U.S. Congress establishes "Lean Production" as ISO 9000, the International Global competitiveness
the Malcolm Baldrige a definition of the Toyota Standard for Quality, was makes total quality a
National Quality Award.
Production System is
Used by the book The
rewritten to incorporate business imperative in
all industraized
nations of the world.
TOM concepts.
FIGURE 1.2 Total Quality: What It Is and How It Is Achieved.
the World
version of TQM.
Transcribed Image Text:CHAPTER ONE The Total Quality Approach to Quality Management
CHAPTER
3
ONE
ONE
Quality has been defined in a number of different ways
by a number of different people and organizations. Consider
the following definitions:
Consider the individual elements of this definition: The
dynamic state element speaks to the fact that what is consid-
ered quality can and often does change as time passes and cir-
cumstances are altered. For example, gas mileage is an impor-
tant criterion in judging the quality of modern automobiles.
However, in the days of 20-cent-per-gallon gasoline, consum-
ers were more likely to concern themselves with horsepower,
cubic inches, and acceleration rates than with gas mileage.
THE TOTAL QUALITY APPROACH
TO QUALITY MANAGEMENT:
. Performance that meets or exceeds expectations.
• Performance that meets the customer's needs.
. Consistently meeting customer needs and expectations.
- Satisfying the customer today and getting better tomorrow.
In his landmark book Out of the Crisis, quality pioneer W.
Edwards Deming makes the point that quality must be defined
from the perspective of the stakeholder. The customer has a stake
in the quality of a product or service, the production workers
have a stake in it, and the organization that employs the produc-
ACHIEVING ORGANIZATIONAL
EXCELLENCE
The products, services, people, processes, and environments
clement is critical. It makes the point that quality applies not
just to the products and services provided, but also to the peo-
ple and processes that provide them and the environments in
which they are provided. In the short term, two competitors
who focus on continual improvement might produce a prod-
uct of comparable quality. But the competitor who looks be-
yond just the quality of the finished product and also focuses
on the continual improvement of the people who produce the
product, the processes they use, and the environment in which
they work will win in the long run and, most frequently, in the
short run. This is because quality products are produced most
consistently by quality organizations.
The superior value element acknowledges that quality
is a key element in providing superior value (ie., superior
quality, cost, and service)
LEARNING OBJECTIVES
tion worker has a stake in it. Each of these entities should have
After completing this chapter, you should be able to:
. Define the term quality.
. Compare and contrast quality and total quality.
. Summarize the two views of quality.
. Describe the key elements of total quality.
. Identify the pioneers of total quality.
. Explain the keys to success with total quality.
· Analyze the future of quality management in the twenty-first century.
. Explain how to become certified in quality management.
their own view of quality and all of their views should mesh.
Although Deming's landmark book is now dated, his
thoughts on quality are still valid and insightful. Deming makes
the point that quality has many different criteria and that these
criteria change continually. To complicate matters even fur-
ther, different people value the various criteria differently. For
this reason, it is important to measure consumer preferences
and to remeasure them frequently. Deming gives an example of
the criteria that are important to him in selecting paper:
1 It is not slick and, therefore, takes pencil or ink well.
Quality, Value, and Organizational
Excellence
The concept of total quality as an approach to doing business began to gain wide acceptance in the United States in the late 1980s
and early 1990s. However, individual elements of the concept-such as the use of statistical data, Sx Sigma, Lean, teamwork, con-
tinual improvement, customer satisfaction, and employee involvement-have been used by visionary organizations for years. It is the
pulling together and coordinated use of these and other previously disparate elements that gave birth to the comprehensive concept
known as total quality. This chapter provides an overview of that concept, laying the foundation for the study of all remaining chapters.
. Writing on the back does not show through.
. It fits into a three-ring notebook.
. It is available at most stationery stores and is, therefore,
easily replenished.
- It is reasonably priced.
It is important for quality professionals to understand how
quality fits into the bigger picture of providing superior
value to customers. Organizations survive and thrive in a
Each of these preferences represents a variable the manu- globally competitive marketplace by providing superior
value to customers. Achieving organizational excellence is
about developing the ability to consistently provide superior
value to customers over the long term. Superior value has
three basic elements: superior quality, superior cost, and su-
perior service.
In order to achieve organizational excellence-the level
of performance necessary for long-term success in a global
environment-it is necessary to consistently provide supe-
rior value to customers. Quality is obviously one of the key
elements in providing superior value. But total quality is
even more than that. Total quality is a broad-based approach
that encompasses all three of the elements of superior value.
Continually improving the quality of products, processes, ser-
vices, and costs is what total quality is all about-hence the
name total quality. Organizations that effectively apply the
total quality approach to management are the ones most likely
to achieve organizational excellence.
facturer can measure and use to continually improve decision
making. Deming is well known for his belief that 94% of work-
place problems are caused by management and especially for
his role in helping Japan rise up out of the ashes of World War
II to become a major industrial power. Deming's contribu-
WHAT IS QUALITY?
One way to understand quality as a consumer-driven
concept is to consider the example of eating at a restaurant.
How will you judge the quality of the restaurant? Most peo-
tions to the quality movement are explained in greater depth
later in this chapter.
Although there is no universally accepted definition of
quality, enough similarity does exist among the definitions
that common elements can be extracted:
To understand total quality, we must first understand qual-
ity. Customers that are businesses will define quality very ple apply such criteria as the following:
clearly using specifications, standards, and other measures.
This makes the point that quality can be defined and mea-
sured. Although few consumers could define quality if
asked, all know it when they see it. This makes the critical
point that quality is in the eye of the beholder. With the
total quality approach, customers ultimately define quality.
People deal with the issue of quality continually in their
daily lives. We concern ourselves with quality when we are
shopping groceries, eating in a restaurant, and making a
major purchase, such as an automobile, a home, a television,
or a personal computer. Perceived quality is a major fac-
tor by which people make distinctions in the marketplace.
Whether we articulate them openly or keep them in the back
of our minds, we all apply a number of criteria when mak-
ing a purchase. The extent to which a purchase meets these
criteria determines its quality in our eyes.
. Service
. Response time
. Food preparation
. Environment or atmosphere
. Price
. Selection
. Quality involves meeting or exceeding customer
expectations.
Quality applies to products, services, people, processes,
and environments.
. Quality is an ever-changing state (i.e., what is considered
quality today may not be good enough to be considered
quality tomorrow).
With these common elements extracted, the following defi- THE TOTAL QUALITY
nition of quality can be set forth:
This example gets at one aspect of quality-the results aspect.
Does the product or service meet or exceed customer expec-
tations? This is a critical aspect of quality, but it is not the only
one. Total quality is a much broader concept that encom-
passes not just the results aspect but also the quality of people
and the quality of processes.
APPROACH DEFINED
Quality is a dynamic state associated with products, ser-
vices, people, processes, and environments that meets or
exceeds expectations and helps produce superior value.
Just as there are different definitions of quality, there are dif-
ferent definitions of total quality. The authors define total
quality as follows:
2
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