Introduction to Total Quality Management

Definitions of Terms & Concepts

What is Quality?

From the various definitions of quality indicatedby quality gurus in literature, there seem to betwo levels in the concept of quality (Hoyer &Hoyer 2001:54), namely:

1- level one where quality means conformanceto specifications and

2- level two where it means satisfy thecustomer.

Philip B. Crosby (1979)

Crosbys definition of quality is conformance torequirements, which is a level one formulation.

Crosbys essential points in his definition of qualityare that:

(1) one must know what the requirements are andbe able to translate these requirements intomeasurable product or service characteristics, and

(2) it is necessary to measure the characteristics ofa product or service to determine whether it is ofhigh quality (Crosby 1979:7).

w.Edward Deming (1988)

Demings perspective of quality is based on a level twodefinition and he defines quality as multidimensional toproduce a product and/or deliver a service that meets thecustomers expectations to ensure consumer satisfaction. Hisessential arguments are that:(1) quality must be defined in terms of customer satisfaction,(2) quality is multidimensional where it is impossible to definethe quality of a product or service in terms of a singlecharacteristic or agent, and(3) there are different degrees of quality, because quality isessentially equated with customer satisfaction (Deming1988:54).

Armand V. Feigenbuam 1983

Feigenbaums definition of quality is a level twodefinition Defining quality as the total compositeproduct and service characteristics of marketing,engineering, manufacturing and maintenancethrough which the product and service in use willmeet the expectations of the customer.Feigenbaums essential points are that :(1) quality must be defined in terms of customer

satisfaction,(2) quality is multidimensional and it must be

defined comprehensively, and

(3) as customers have changing needs andexpectations, quality is dynamic.

In this regard, Feigenbaum writes, A crucialquality role of top management is to recognizethis evolution in the customers definition ofquality at different stages of product growth(Feigenbaum 1983:7).

Ishikawa 1985

Ishikawas definition of quality is a level two definition,namely We engage in quality control in order tomanufacture products with the quality which can satisfythe requirements of consumers. Ishikawas essentialpoints are that:(1) quality is equivalent to consumer satisfaction,(2) quality must be defined comprehensively,(3) consumers needs and requirements change

continuously, therefore, the definition of quality is everchanging, and(4) the price of a product or service is an important part

of its quality (Ishikawa 1985:44).

J.Juran (1988)

Jurans definition of quality is a simultaneous attempt to be alevel one and level two definition. He defines quality based ona multiple meaning, namely :(1) Quality consists of those product features which meet theneeds of customers and thereby provide product satisfaction,(2) Quality consists of freedom from deficiencies. Juransessential points are:(1) a practical definition of quality is probably not possible, and(2) quality is apparently associated with customersrequirements, and fitness suggests conformance tomeasurable product characteristics (Juran 1988:22).

Goodman, OBrein & Segal (2000)

Goodman, OBrein & Segal (2000:49) definequality as consistently producing what thecustomer wants, while reducing errors beforeand after delivery to the customer. The qualitydefinition of fulfilling or exceeding customersneeds has become an ideological trailblazerdriving the pursuit of customer satisfaction.

Dervitsiotis (2003:511) takes a more systematicapproach to quality, and specifically thecustomer, with the following definition: Qualityis meeting or exceeding the needs andexpectations of the business stakeholders.Stakeholders are those individuals and groupswith a stake in the business, includingcustomers, shareholders, employees, suppliers

and communities (Dervitsiotis 2003:511).

What about quality in specific context?

Quality of healthcare?

Quality of higher education?

Quality of healthcare

The IOM stated in 1990 in Medicare: AStrategy for Quality Assurance that"quality of care is the degree to whichhealth services for individuals andpopulations increase the likelihood ofdesired health outcomes and areconsistent with current professionalknowledge" (IOM, 1990, p. 21).

Quality of medical care produces optimalimprovements in the patients health; emphasizesthe promotion of health and the prevention ofdisease; is provided in a timely manner, seeks toachieve the patients informed cooperation andparticipation in the care process and decisionsconcerning it; is based on accepted principles ofmedical science; should provide sensitivity andconcern for patients welfare; makes efficient useof technology; is sufficiently documented to allowcontinuity of care and peer evaluation; and givesan important place to the assessment of patientgoals and values.

Perspectives of TQM

TQM may be defined as a continuous quest forexcellence by creating the right skills andattitudes in people to make prevention ofdefects possible and satisfy customers/userstotally at all times. TQM is an organization-wide activity that has to reach every individualwithin an organization.

Oakland defined TQM as:

Total Quality Management (TQM) is anapproach to improving the effectiveness,competitiveness and flexibility of business as awhole. It is essentially a way of organizing andinvolving the whole organization; everydepartment, every activity, every single personat every level.

According to Zaire and Simintiras:

Total Quality Management is the combination ofthe socio-technical process towards doing theright things (externally), everything right(internally) first time and all the time, with

economic viability considered at each stage ofeach process.

Wilkinson & Witcher (1993:48) and Nwabueze(2001:659) summarise TQM as having threemajor requirements, as outlined in thefollowing:

Total: Participation of Everyone, an institution-wide process:TQM requires continuing improvement and getting thingsright first time. Since most quality solutions are outside thecontrol of any one individual or function, this needs teamwork and the maintenance of good relationships.Quality: Meeting Customer Requirements Exactly: TQMrequires customer-agreed specifications which allow thesupplier to measure performance and customer satisfaction.Individuals and teams need to use quality tools and systemsto facilitate measurement and problem solving.Management: Enabling Conditions for Total Quality: TQMrequires leadership and total commitment from seniormanagement to quality goals. They must ensure that anappropriate infrastructure exists to support a holistic and nota compartmentalized approach to institutionalmanagement.

TQM can be classified under the following broad headings:

TQM as a culture

TQM as a management and institution-wide process

TQM as management philosophy and guiding principle

TQM as a strategy

TQM as a system

TQM as a culture

Kanji & Wallace (2000:979) define TQM as: TQM is theculture of an institution committed to customer satisfactionthrough continuous improvement. The two researchers alsouse the following definition: TQM is a corporate culturecharacterized by increased customer satisfaction throughcontinuous improvements, in which all employees in the firmactively participate. Sashkin & Kiser (1993:39), experts on the subject, offeredthis definition of TQM: TQM means that the institutionsculture is defined by and supports the constant attainment ofcustomer satisfaction through an integrated system of tools,techniques and training. This involves the continuousimprovement of institutional processes, resulting in highquality products and services.

TQM as a management and institution-wide process

Parzinger & Nath (2000:355) define TQM as amanagement process and institution-wide

process to instill a culture of continuousimprovement in an institution to ensure that theinstitution consistently meets and exceedscustomer requirements.

Senthil et al. (2001:682) and Selladurai (2002:615)define TQM as a continuons management processthat aims at quality improvement in all processesand activities in institutions. The ultimate goal ofTQM is to establish a management system and

institutional culture that ensures customersatisfaction (both internal and external) and

never-ending continuous improvement of allinstitutional processes

TQM as management philosophy and guiding principle

Djerdjour & Patel (2000:26) define TQM as a managementphilosophy, which seeks continuous improvement in thequality of all processes, people, products and services of aninstitution. Continuous improvement can be achievedthrough internal and external quality improvements.

Pun (2002:760) defines TQM as an integratedmanagement philosophy and set of practices thatemphasize continuous improvement, meeting customersrequirements, reducing rework, long-range thinking,increased employee involvement and teamwork, processredesign, competitive benchmarking, team-based problem-solving, constant measurement of results and closerrelationships with suppliers.

TQM as a strategy

- Dean & Evans (1994:7) define TQM as anintegrated, systematic, institution-wide strategy forimproving product and service quality.

Jones (1994:98) defines TQM as a strategy forimproving institutional performance through thecommitment of all employees to fully satisfyingagreed customer requirements at the lowest overallcost through the continuous improvement ofproducts and services, business processes and thepeople involved.

TQM as a system

- Evans & Dean (2003:16) define TQM as a total systemapproach (not a separate area or programme) and anintegral part of high-level strategy; it works horizontally andvertically across all functions and departments, involves allemployees, top to bottom, and extends backward andforward to include the supply chain and the customerchain. Hansson (2001:990) defines TQM as a management systemin continuous change, which comprises values, techniquesand tools and that the overall goal of the system is increasedcustomer satisfaction with decreasing resources.

Principles of TQM

According to Dean & Bowen (1994:394), TQMimplementation can only be accomplished

through a set of principles that supports theTQM philosophy. What differentiates TQM

from other management processes is theemphasis on continuous improvement;continuous improvement of individuals, ofgroups and of institutions.

To improve performance, people need to knowwhat to do, how to do it, have the right tools todo it, be able to measure performance and toreceive feedback on current levels ofachievement.

Principles of TQM

TQM begins at top management Top management shoulddemonstrate understanding, commitment and be involved in thetotal quality improvement process from day one in order toimprove quality in all areas of the institution.

TQM requires total employee involvement Institutions needimagination, ideas, input, commitment and energy from everyonein the institution to reach for world-class quality that will make acountry competitive in todays market. Therefore, involvement ofevery individual and respect for their inputs are necessary forsuccessful TQM implementation.

TQM focusses on the customer Institutions depend on theircustomers and therefore should understand current and futurecustomer needs, meet customer requirements and strive to exceedcustomer expectations.

TQM requires strategic planning Strategic planning is necessaryto align and integrate all the efforts of the institution with the TQMconcept. The link between TQM and strategic planning shouldprovide an integrated management system for an institution.

TQM focuses on the systems approach to management Identifying, understanding and managing interrelated processes asa system should contribute to the institutions effectiveness andefficiency in achieving its objective.

TQM requires ongoing education and training of employees Training should begin with educating top managers in TQM and itsprinciples, in the need for quality improvement, and in the tools ofimprovement. Training should provide employees with theeducation required to effectively participate in qualityimprovements.

TQM focuses on teamwork Institutions should understand thatemployees need to participate in vertical, horizontal and cross-functionalteams to be most effective. Teams should be used throughcollaboration/participation, to provide an opportunity for employees towork together in their pursuit of total quality in ways that they have notworked together before.

TQM focuses on continuous improvement Continuous improvementshould be a permanent objective of the institution. Continuousimprovement means a commitment to constant examination of technicaland administrative processes in search of better methods to meet theincreasingly stringent expectations of customers.

TQM focuses on process improvement The institution should bereconfigured as a set of horizontal processes that begin with the supplierand end with the customer. All processes in an institution should beidentified to establish ownership for the processes and processes shouldbe kept as simple as possible.

TQM requires a statistical way of thinking andthe use of statistical methods Results of tests,measurements and conditions under whichmeasurements were made should bemeticulously maintained.

TQM focuses on prevention rather thandetection Problems are to be anticipated toprevent them from occurring. Frequent meetingsshould be held to discuss foreseen problems.

TQM requires mutually beneficial supplier relationships Aninstitution and its suppliers are interdependent, and a mutuallybeneficial relationship enhances the ability of both to create value.

TQM focuses on performance measures that are consistent withthe goals of the institution Feasible measures should beestablished to reward performance and thereby promoting positiveattitudes. In order to monitor how the institution is performing,management must analyse the performance on a continuous basis.

TQM focuses on product and service quality design Qualityshould be built into the programme as soon as possible, preferablyfrom day one, and should be spread over the total sphere of theprogramme. Therefore, the advice of experts should form part ofthe project right from the start.

TQM focuses on substantial culture change All changes in theenvironment should be taken note of and the necessaryadaptations should be made promptly.

TQM focuses on the factual approach to decision-making Decisions should be based upon facts rather than gut feelingswhich is essential to achieve continuous improvement.

TQM requires self-assessment as a control mechanism todetermine results Institutions performance should be evaluatedagainst internationally recognized standards.

TQM focuses on fast response Increasingly rapid response timesand ever-shorter cycles for new or improved product and serviceintroduction are a necessity for customer satisfaction today.

TQM provides standardization Institutions shoulddevelop and adhere to the best-known ways to perform agiven task.

TQM focuses on partnership development Institutionsshould seek to build internal and external partnerships tobetter accomplish their overall goals. Internal partnershipsmight include those that promote cooperation between

labor and management. External partnerships might be withcustomers, suppliers and educational institutions for a varietyof purposes, including education and training. A partnershipmay permit the blending of institutions strengths andcapabilities, thereby enhancing the accomplishment of eachpartners mission.

Important Events in the Development of TQM.

1924-1932: Hawthorne studies demonstrated the importance of the social and psychological climate in work.

1924: Shewhart developed statistical process control.

1926: The Bell Telephone began to apply statistical control methods.

Mid 1940s: The American army pushed the use of sampling methods during World War II.

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1950s. : A large number of attempts at work improvement were undertaken (e.g. job enrichment, work redesign, participative management, quality of work life and worker involvement).

1950: First visit of Deming to Japan.

1951: Creation of Deming Application Prize in Japan.

First edition of Jurans Quality Control Handbook.

1954: First visit of Juran to Japan.

Maslows theories about human needs

1960: Liberalisation of economy in Japan with pressure toimprove quality to compete with foreign companies.

McGregors X and Y theories.

1961: First edition of Feigenbaums Total Quality Control.

1962: The idea of quality circles appeared in the first issue ofthe Japanese journal Quality Control for the Foreman.

Late 1960s and early 1970s: The pressure of Japanesecompanies began to be felt in American companies.

1972: QFD was developed at Mitsubishis Kobeshipyard site.

1973: After the 1973 oil crisis the JIT system wasadopted by a vast number of Japanese companies. Asmall number of American and European companiesbegan to apply this system in the 1980s.

Mid 1970s: Quality circles began to be widelyintroduced in the USA, the first quality circle programmewas launched in Lockheed in 1974 and in the UK it wasRolls Royce who introduced the concept in 1979.

1979: First edition of Crosbys Quality is Free.

Xerox Corp. started to apply the benchmarking concept to processes.

Publication of the BS5750 quality management series

1980: A NBC television documentary about the Japanesemiracle proposed Deming as a key element in this miracle.1981: Ouchis Z theory.1982: First edition of Demings Quality, productivity andcompetitive position.1983: Quality on the line, published by Garvin in HarvardBusiness Review analysed the differences between Japaneseand American companies, showing some of the reasons forthe better performance of the former.A paper about Taguchis design of experiments is published inHarvard Business Review (Taguchi and Clausing, 1983).1985: The Naval Air Systems Command named its Japanese-style management approach total quality management.

1987. Publication of the Malcolm Baldridge National Quality

Award.

1986.

First edition of Demings Out of the crisis. It became a best

seller.

1987.

First edition of ISO 9000 quality management system series.