Quality Management for Organizational Excellence PDF

Quality Management for Organizational Excellence:Introduction to Total Quality David L. Goetsch Stanley Davis Seventh Edition Pearson Education Limited Edinburgh Gate Harlow Essex CM20 2JE England and Associated Companies throughout the world Visit us on the World Wide Web at: www.p...

Quality Management for Organizational Excellence:Introduction to Total Quality David L. Goetsch Stanley Davis Seventh Edition Pearson Education Limited Edinburgh Gate Harlow Essex CM20 2JE England and Associated Companies throughout the world Visit us on the World Wide Web at: www.pearsoned.co.uk © Pearson Education Limited 2014 All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without either the prior written permission of the publisher or a licence permitting restricted copying in the United Kingdom issued by the Copyright Licensing Agency Ltd, Saffron House, 6–10 Kirby Street, London EC1N 8TS. All trademarks used herein are the property of their respective owners. The use of any trademark in this text does not vest in the author or publisher any trademark ownership rights in such trademarks, nor does the use of such trademarks imply any affiliation with or endorsement of this book by such owners. ISBN 10: 1-292-02233-7 ISBN 13: 978-1-292-02233-8 British Library Cataloguing-in-Publication Data A catalogue record for this book is available from the British Library Printed in the United States of America  P E A R S O N C U S T O M L I B R A R Y Table of Contents 1. The Total Quality Approach to Quality Management: Achieving Organizational Excellence David L. Goetsch/Stanley Davis 1 2. Quality and Global Competitiveness David L. Goetsch/Stanley Davis 19 3. Quality Management, Ethics, and Corporate Social Responsibility David L. Goetsch/Stanley Davis 35 4. Quality Culture: Changing Hearts, Minds, and Attitudes David L. Goetsch/Stanley Davis 51 5. Strategic Management: Planning and Execution for Competitive Advantage David L. Goetsch/Stanley Davis 67 6. Partnering and Strategic Alliances David L. Goetsch/Stanley Davis 85 7. Customer Satisfaction, Retention, and Loyalty David L. Goetsch/Stanley Davis 101 8. Employee Empowerment David L. Goetsch/Stanley Davis 119 9. Leadership and Change David L. Goetsch/Stanley Davis 131 10. Team Building and Teamwork David L. Goetsch/Stanley Davis 155 11. Effective Communication David L. Goetsch/Stanley Davis 173 12. Education and Training David L. Goetsch/Stanley Davis 193 13. Overcoming Politics, Negativity, and Conflict in the Workplace David L. Goetsch/Stanley Davis 219 I  14. ISO 9000 and Total Quality: The Relationship David L. Goetsch/Stanley Davis 245 15. Overview of Total Quality Tools David L. Goetsch/Stanley Davis 257 16. Problem Solving and Decision Making David L. Goetsch/Stanley Davis 291 17. Quality Function Deployment David L. Goetsch/Stanley Davis 309 18. Optimizing and Controlling Processes through Statistical Process Control David L. Goetsch/Stanley Davis 327 19. Continual Improvement Methods with Six Sigma, Lean, Lean Six Sigma, and More David L. Goetsch/Stanley Davis 357 20. Benchmarking David L. Goetsch/Stanley Davis 385 21. Just-in-Time/Lean Manufacturing (JIT/Lean) David L. Goetsch/Stanley Davis 401 22. Implementing Total Quality Management David L. Goetsch/Stanley Davis 435 Index 461 II THE TOTAL QUALITY APPROACH TO QUALITY MANAGEMENT: ACHIEVING ORGANIZATIONAL EXCELLENCE There are really only three types of people: those who make things happen, those who watch things happen, and those who say, “What happened?” —Ann Landers MAJOR TOPICS People deal with the issue of quality continually in. What Is Quality? their daily lives. We concern ourselves with quality when. The Total Quality Approach Defined we are grocery shopping, eating in a restaurant, and. Two Views of Quality making a major purchase, such as an automobile, a home,. Key Elements of Total Quality a television, or a personal computer. Perceived quality is. Total Quality Pioneers a major factor by which people make distinctions in the marketplace. Whether we articulate them openly or keep. Keys to Total Quality Success them in the back of our minds, we all apply a number of. The Future of Quality Management in the criteria when making a purchase. The extent to which a Twenty-First Century purchase meets these criteria determines its quality in our. Quality Certifications eyes. One way to understand quality as a consumer-driven concept is to consider the example of eating at a restaurant. The total quality concept as an approach to doing How will you judge the quality of the restaurant? Most peo- business began to gain wide acceptance in the United ple apply such criteria as the following: States in the late 1980s and early 1990s. However, individual elements of the concept—such as the. Service use of statistical data, Six Sigma, Lean, teamwork,. Response time continual improvement, customer satisfaction, and. Food preparation employee involvement—have been used by visionary. Environment or atmosphere organizations for years. It is the pulling together and. Price coordinated use of these and other previously dispa-. Selection rate elements that gave birth to the comprehensive This example gets at one aspect of quality—the results concept known as total quality. This chapter provides aspect. Does the product or service meet or exceed customer an overview of that concept, laying a foundation for expectations? This is a critical aspect of quality, but it is not study. the only one. Total quality is a much broader concept that encompasses not just the results aspect but also the quality of people and the quality of processes. WHAT IS QUALITY? Quality has been defined in a number of different ways by a number of different people and organizations. Consider To understand total quality, we must first understand quality. the following definitions: Customers that are businesses will define quality very clearly using specifications, standards, and other measures. This. Fred Smith, CEO of Federal Express, defines qual- makes the point that quality can be defined and measured. ity as “performance to the standard expected by the Although few consumers could define quality if asked, all know customer.”1 it when they see it. This makes the critical point that quality. The General Services Administration (GSA) defines is in the eye of the beholder. With the total quality approach, quality as “meeting the customer’s needs the first time customers ultimately define quality. and every time.”2 From Chapter 1 of Quality Management for Organizational Excellence: Introduction to Total Quality, 7th Edition. David L. Goetsch, Stanley B. Davis. Copyright © 2013 by Pearson Education, Inc. All rights reserved. 1  The Total Quality Approach to Quality Management. Boeing defines quality as “providing our customers With these common elements extracted, the following defi- with products and services that consistently meet their nition of quality can be set forth: needs and expectations.”3 Quality is a dynamic state associated with products, serv-. The U.S. Department of Defense (DOD) defines qual- ices, people, processes, and environments that meets or ity as “doing the right thing right the first time, always exceeds expectations and helps produce superior value. striving for improvement, and always satisfying the customer.”4 Consider the individual elements of this definition: The dynamic state element speaks to the fact that what is consid- In his landmark book Out of the Crisis, quality pioneer ered quality can and often does change as time passes and W. Edwards Deming has this to say about quality: circumstances are altered. For example, gas mileage is an Quality can be defined only in terms of the agent. important criterion in judging the quality of modern auto- Who is the judge of quality? In the mind of the pro- mobiles. However, in the days of 20-cent-per-gallon gaso- duction worker, he produces quality if he can take line, consumers were more likely to concern themselves pride in his work. Poor quality, to him, means loss with horsepower, cubic inches, and acceleration rates than with of business, and perhaps of his job. Good quality, gas mileage. he thinks, will keep the company in business. The products, services, people, processes, and environ- Quality to the plant manager means to get the num- ments element is critical. It makes the point that quality bers out and to meet specifications. His job is also, applies not just to the products and services provided, but whether he knows it or not, continual improvement of also to the people and processes that provide them and the leadership.5 environments in which they are provided. In the short term, two competitors who focus on continual improvement Although Deming’s landmark book is now dated, his might produce a product of comparable quality. But the thoughts on quality are still valid and insightful. Deming competitor who looks beyond just the quality of the finished makes the point that quality has many different criteria product and also focuses on the continual improvement of and that these criteria change continually.6 To complicate the people who produce the product, the processes they use, matters even further, different people value the various cri- and the environment in which they work will win in the long teria differently. For this reason, it is important to measure run and, most frequently, in the short run. This is because consumer preferences and to remeasure them frequently. quality products are produced most consistently by quality Deming gives an example of the criteria that are important organizations. to him in selecting paper:7 The superior value element acknowledges that quality is a key element in providing superior value (i.e., superior. It is not slick and, therefore, takes pencil or ink well. quality, cost, and service).. Writing on the back does not show through.. It fits into a three-ring notebook. Quality, Value, and Organizational. It is available at most stationery stores and is, therefore, Excellence easily replenished. It is important for quality professionals to understand how. It is reasonably priced. quality fits into the bigger picture of providing superior Each of these preferences represents a variable the man- value to customers. Organizations survive and thrive in a ufacturer can measure and use to continually improve deci- globally competitive marketplace by providing superior sion making. Deming is well-known for his belief that 94% value to customers. Achieving organizational excellence is of workplace problems are caused by management and espe- about developing the ability to consistently provide supe- cially for his role in helping Japan rise up out of the ashes of rior value to customers over the long term. Superior value World War II to become a major industrial power. Deming’s has three basic elements: superior quality, superior cost, and contributions to the quality movement are explained in superior service. greater depth later in this chapter. Although there is no universally accepted definition of quality, enough similarity does exist among the definitions QUALITY TIP 䉲 that common elements can be extracted: Ishikawa’s Definition of Quality. Quality involves meeting or exceeding customer Any discussion of the Japanese quality gurus must include expectations. Kaoru Ishikawa. Ishikawa defines quality as follows: (1). Quality applies to products, services, people, processes, quality and customer satisfaction are the same thing and (2) quality is a broad concept that goes beyond just product and environments. quality to also include the quality of people, processes, and. Quality is an ever-changing state (i.e., what is consid- every other aspect of the organization. ered quality today may not be good enough to be con- Source: www.businessballs.com/ retrieved on January 15, 2011. sidered quality tomorrow). 2  The Total Quality Approach to Quality Management In order to achieve organizational excellence—the as the primary arbiter of what is acceptable in terms of qual- level of performance necessary for long-term success ity. Each of the three legs is a broad element of the total qual- in a global environment—it is necessary to consistently ity philosophy (i.e., measures, people, and processes). The provide superior value to customers. Quality is obvi- “measures” leg of the stool makes the point that quality can ously one of the key elements in providing superior value. and must be measured. The “people” leg of the stool makes But total quality is even more than that. Total quality is the point that quality cannot be inspected into a product or a broad-based approach that encompasses all three of service. Rather, it must be built in by people who are empow- the elements of superior value. Continually improving ered to do their jobs the right way. The “processes” leg of the the quality of products, processes, services, and costs is stool makes the point that processes must be improved, con- what total quality is all about—hence the name total qual- tinually and forever. What is considered excellent today may ity. Organizations that effectively apply the total qual- be just mediocre tomorrow. Consequently, “good enough” ity approach to management are the ones most likely to is never good enough. achieve organizational excellence. Another way to understand total quality as a concept is shown in Figure 2. Notice that the first part of the defini- tion in Figure 2 explains the what of total quality; the second THE TOTAL QUALITY part explains the how. In the case of total quality, the how APPROACH DEFINED is important because it is what separates this approach to Just as there are different definitions of quality, there are doing business from all of the others. different definitions of total quality. For example, the DOD The total in total quality indicates a concern for quality defines the total quality approach as follows: in the broadest sense—what has come to be known as the “Big Q.” Big Q refers to quality of products, services, people, Total quality consists of the continual improvement of processes, and environments. Correspondingly, “Little Q” people, processes, products (including services), and refers to a narrower concern that focuses on the quality of environments. With total quality anything and everything one of these elements or individual quality criteria within an that affects quality is a target for continual improvement. individual element. When the total quality concept is effectively applied, the end results can include organizational excellence, supe- rior value, and global competitiveness. How Is Total Quality Different? An easy way to grasp the concept of total quality is to What distinguishes the total quality approach from tra- consider the analogy of a three-legged stool, as shown in ditional ways of doing business can be found in how it is Figure 1. The seat of the stool is customer focus. This means achieved. The distinctive characteristics of total quality are with total quality the customer is in the “driver’s seat” these: customer focus (internal and external), obsession with FIGURE 1 Three-Legged Stool of Total Quality 3  The Total Quality Approach to Quality Management FIGURE 2 Total Quality: What It Is and How It Is Achieved quality, use of the scientific approach in decision making neering, in turn, resulted in the use of statistical methods in and problem solving, long-term commitment, teamwork, the control of quality, which eventually led to the concepts continual process improvement, bottom-up education and of control charts and statistical process control, which are now training, freedom through control, unity of purpose, and fundamental aspects of the total quality approach. employee involvement and empowerment, all deliberately Reliability engineering emerged in the 1950s. It began aimed at supporting the organizational strategy. Each of a trend toward moving quality control away from the tra- these characteristics is explained later in this chapter. ditional after-the-fact approach and toward inserting it throughout the design and production processes. However, for the most part, quality control in the 1950s and 1960s The Historic Development of Total Quality involved inspections that resulted in nothing more than cut- The total quality movement had its roots in the time and ting out bad parts. motion studies conducted by Frederick Taylor in the 1920s. World War II had an impact on quality that is still being Table 1 is a timeline that shows some of the major events in felt. In general, the effect was negative for the United States the evolution of the total quality movement since the days and positive for Japan. Because of the urgency to meet pro- of Taylor. Taylor is now known as “the father of scientific duction schedules during the war, U.S. companies focused management.” more on meeting delivery dates than on quality. This The most fundamental aspect of scientific manage- approach became a habit that carried over even after the war. ment is the separation of planning and execution. Although Japanese companies, on the other hand, were forced to the division of labor spawned tremendous leaps forward in learn to compete with the rest of the world in the production productivity, it virtually eliminated the old practice of one of nonmilitary goods. At first, their attempts were unsuc- highly skilled individual performing all the tasks required cessful, and “Made in Japan” remained synonymous with to produce a quality product. In a sense, that individual poor quality, as it had been before World War II. Around was CEO, production worker, and quality controller all 1950, however, Japan decided to get serious about quality rolled into one. Taylor’s scientific management did away and establishing ways to produce quality products. with this by making planning the job of management and Japanese manufacturers overcame a reputation for pro- production the job of labor. To keep quality from falling ducing cheap, shabby products and developed a reputation through the cracks, it was necessary to create a separate as world leaders in the production of quality products. More quality department. Such departments had shaky begin- than any other single factor, it was the Japanese miracle— nings, and just who was responsible for quality became a which was not a miracle at all but the result of a concerted clouded issue. effort that took 20 years to really bear fruit—that got the rest As the volume and complexity of manufacturing grew, of the world to focus on quality. When Western companies quality became an increasingly difficult issue. Volume and finally realized that quality was the key factor in global com- complexity together gave birth to quality engineering in the petition, they responded. Unfortunately, their first responses 1920s and reliability engineering in the 1950s. Quality engi- were the opposite of what was needed. 4  The Total Quality Approach to Quality Management TABLE 1 100 Years of Selected Historic Milestones in the Global Quality Movement 1908 1924 Prior to 1906–1908 Ford attains perfect Shewhart identifies part interchangeability, causes of process 1931 All autos assembled by eliminating the need variation as Common skilled craftsmen called for skilled craftsmen. and special, and Shewhart publishes “Fitters.” Time req’d. to Time req’d. for a Ford develops the Statistical his book, “Economic complete a Ford Fitter’s “Assembler” to complete his Process Control (SPC) Control of Quality of task was 8.56 hours. assigned task: 2.3 minutes. chart. Manufactured Products.” 1906 1913 1927 1939 Cadillac achieves Ford introduces the Deming meets Shewhart, Start of World War II perfect interchan- moving assembly line, and sees the relevance geability of parts. reducing the Assembler’s of his ideas to management. task time to 1.9 minutes. 1941 1946 1950 1960s & 1970s Deming teaches SPC SPC fades in America Eiji Toyoda & Taiichi Japan captures market share to American wartime as pent up demand for Ohno start development of from Western manufacturers. production workers. manufactured goods the Toyota Production System U.S. loses some market SPC widely used. seems boundless. (TPS). Continues to this date. segments completely. 1945 1950 1954 1980 End of World War II Deming trains hundreds of Juran conducts Quality NBC Airs TV documentary, Japanese engineers, managers, Management courses “If Japan Can, Why Can’t We?” executives and scholars in in Japan. Brings attention to Japanese SPC and Quality concepts. success with quality and to Deming. American industry begins to learn from Japan. 2010 TQM/Lean/Six Sigma 1981 1985 1988 generally acknowledged 1993 worldwide as the Ford and GM invite Beginning of adoption U.S. Dept. of Defense management system of Deming to speak of Total Quality endorses TQM, causing TQM is widely taught the 21st Century, and are to executives. Ford Management by DoD contractors in U.S. colleges practiced by organizations listened better than GM. American organizations. to follow suit. and universities. across the planet. 1982 1987 1990 2000 Deming publishes U.S. Congress establishes “Lean Production” as ISO 9000, the International “Quality, Productivity, the Malcolm Baldrige a definition of the Toyota Standard for Quality was and Competitive National Quality Award. Production System is rewritten to incorporate Position,” his philosophy used by the book, “The TQM concepts. Motorola introduces Six of management based Machine That Changed Sigma as a more powerful on his “Fourteen Points.” The World.” version of TQM. In spite of these early negative reactions, Western com- produced. The traditional view focused on after-the-fact panies began to realize that the key to competing in the global inspections of products. With total quality, the emphasis marketplace was to improve quality. With this realization, the is on continual improvement of products, processes, and total quality movement finally began to gain momentum. people in order to prevent problems before they occur. The traditional view of quality saw employees as passive work- ers who followed orders given by supervisors and manag- TWO VIEWS OF QUALITY ers. It was their labor, not their brains, that was wanted. The total quality philosophy introduced a whole new With total quality, employees are empowered to think and way of looking at quality. The traditional view of qual- make recommendations for continual improvement. They ity measured process performance in defective parts per are also shown the control boundaries within which they hundred produced. With total quality, the same measure- must work and are given freedom to make decisions within ment is thought of in terms of defective parts per million those boundaries. 5  The Total Quality Approach to Quality Management The traditional view of quality expected one improve- definition. This component has 11 critical elements, each of ment per employee per year. Total quality organizations which is explained in the remainder of this section and all of expect to make at least 10 or more improvements per which relate to one of the components of the three-legged employee per year. Organizations that think traditionally stool in Figure 1. focus on short-term profits. The total quality approach focuses on long-term profits and continual improvement. Strategically Based The following statements summarize some of the major Total quality organizations have a comprehensive strategic differences between the traditional view of quality and the plan that contains at least the following elements: vision, total quality perspective: mission, broad objectives, and activities that must be com-. Productivity versus quality. The traditional view is pleted to accomplish the broad objectives. The strategic plan that productivity and quality are always in conflict. You of a total quality organization is designed to give it a sus- cannot have both. The total quality view is that lasting tainable competitive advantage in the marketplace. The com- productivity gains are made only as a result of quality petitive advantages of a total quality organization are geared improvements. toward achieving world-leading quality and improving on it,. How quality is defined. The traditional view is that qual- continually and forever. ity is defined solely as meeting customer specifications. The total quality view is that quality means satisfying cus- Customer Focus tomer needs and exceeding customer expectations. In a total quality setting, the customer is the driver. This. How quality is measured. The traditional view is that point applies to both internal and external customers. quality is measured by establishing an acceptable level of External customers define the quality of the product or serv- nonconformance and measuring against that benchmark. ice delivered. Internal customers help define the quality of The total quality view is that quality is measured by estab- the people, processes, and environments associated with the lishing high-performance benchmarks for customer satis- products or services. faction and then continually improving performance.. How quality is achieved. The traditional view is that Obsession with Quality quality is inspected into the product. The total quality In a total quality organization, internal and external custom- view is that quality is determined by product and proc- ers define quality. With quality defined, the organization ess design and achieved by effective control techniques. must then become obsessed with meeting or exceeding this. Attitude toward defects. The traditional view is that definition. This means all personnel at all levels approach all defects are an expected part of producing a product. aspects of the job from the perspective of “How can we do Measuring defects per hundred is an acceptable stand- this better?” When an organization is obsessed with quality, ard. The total quality view is that defects are to be pre- “good enough” is never good enough. vented using effective control systems and should be measured in defects per million (Six Sigma). Scientific Approach. Quality as a function. The traditional view is that Total quality detractors put off by such concepts as employee quality is a separate function. The total quality view is empowerment sometimes view total quality as nothing more that quality should be fully integrated throughout the than another name for “soft” management or “people” organization—it should be everybody’s responsibility. management. Although it is true that people skills, involve-. Responsibility for quality. The traditional view is that ment, and empowerment are important in a total quality employees are blamed for poor quality. The total quality setting, they represent only a part of the equation. Another view is that at least 85% of quality problems are man- important part is the use of the scientific approach in struc- agement’s fault. turing work and in making decisions and solving problems. Supplier relationships. The traditional view is that that relate to the work. This means that hard data are used supplier relationships are short term and cost driven. in establishing benchmarks, monitoring performance, and The total quality view is that supplier relationships are making improvements. long term and quality oriented. Long-Term Commitment Organizations that implement management innovations KEY ELEMENTS after attending short-term seminars often fail in their initial OF TOTAL QUALITY attempt to adopt the total quality approach. This is because The total quality approach was defined in Figure 2. This they look at total quality as just another management inno- definition has two components: the what and the how of vation rather than as a whole new way of doing business total quality. What distinguishes total quality from other that requires an entirely new corporate culture. Too few approaches to doing business is the how component of the organizations begin the implementation of total quality 6  The Total Quality Approach to Quality Management with the long-term commitment to change that is necessary behind management–labor discord ad infinitum without for success. achieving consensus. From the perspective of total quality, who or what is to blame for adversarial management–labor rela- Teamwork tions is irrelevant. What is important is this: To apply the total quality approach, organizations must have unity of purpose. In traditionally managed organizations, the best competitive This means that internal politics have no place in a total quality efforts are often among departments within the organiza- organization. Rather, collaboration should be the norm. tion. Internal competition tends to use energy that should A question frequently asked concerning this element of be focused on improving quality and, in turn, external com- total quality is “Does unity of purpose mean that unions will petitiveness. no longer be needed?” The answer is that unity of purpose has nothing to do with whether unions are needed. Collective Continual Process Improvement bargaining is about wages, benefits, and working conditions, Products are developed and services delivered by people not about corporate purpose and vision. Employees should using processes within environments (systems). To continu- feel more involved and empowered in a total quality setting ally improve the quality of products or services—which is a than in a traditionally managed situation, but the goal of fundamental goal in a total quality setting—it is necessary to total quality is to enhance competitiveness, not to eliminate continually improve systems. unions. For example, in Japan, where companies are known for achieving unity of purpose, unions are still very much in evidence. Unity of purpose does not necessarily mean that Education and Training labor and management will always agree on wages, benefits, Education and training are fundamental to total quality and working conditions, but it does mean that all employees because they represent the best way to improve people work toward the common goal. on a continual basis. It is through education and training that people who know how to work hard learn how to also Employee Involvement and Empowerment work smart. Employee involvement and empowerment is one of the most misunderstood elements of the total quality approach Freedom Through Control and one of the most misrepresented by its detractors. The basis for involving employees is twofold. First, it increases Involving and empowering employees is fundamental to the likelihood of a good decision, a better plan, or a more total quality as a way to simultaneously bring more minds effective improvement by bringing more minds to bear on to bear on the decision-making process and increase the the situation—not just any minds but the minds of the peo- ownership employees feel about decisions that are made. ple who are closest to the work in question. Second, it pro- Total quality detractors sometimes mistakenly see employee motes ownership of decisions by involving the people who involvement as a loss of management control, when in will have to implement them. fact control is fundamental to total quality. The freedoms Empowerment means not just involving people but also enjoyed in a total quality setting are actually the result of involving them in ways that give them a real voice. One of well-planned and well-carried-out controls. Controls such the ways this can be done is by structuring work that allows as scientific methodologies lead to freedom by empowering employees to make decisions concerning the improvement employees to solve problems within their scope of control. of work processes within well-specified parameters. Should a machinist be allowed to unilaterally drop a vendor if the Unity of Purpose vendor delivers substandard material? No. However, the Historically, management and labor have had an adversarial machinist should have an avenue for offering his or her input relationship in U.S. industry. One could debate the reasons into the matter. Should the same machinist be allowed to change the way she sets up her machine? If by so doing she can improve her part of the process without adversely affecting someone QUALITY TIP 䉲 else’s, yes. Having done so, her next step should be to show other machinists her innovation so that they might try it. Continually Improving People, Processes, and Products The total quality approach seeks to improve everything all the time forever. This means that it encompasses Peak Performance continually improving (1) how well people are able to do When effectively practiced, total quality allows every aspect their jobs, (2) how well processes perform, and (3) the quality of products and services provided by the people and of an organization to operate at peak levels. This means that processes. To achieve total quality, it is necessary to focus all personnel and processes are operating at their best. Peak more on solving problems and continually improving and performance is essential to organizations that operate in a less on blaming individuals for problems. global environment where competition is intense, constant, and unforgiving. 7  The Total Quality Approach to Quality Management TOTAL QUALITY PIONEERS QUALITY CASE 䉲 Total quality is not just one individual concept. It is a number of related concepts pulled together to create a comprehen- Autoliv Queretaro: Quality in Automotive Safety Systems sive approach to doing business. Many people contributed Autoliv Inc. is the world leader in automotive safety systems. in meaningful ways to the development of the various con- The company’s plant in Queretaro, Mexico employees approximately 5,000 of the company’s 42,000 personnel cepts that are known collectively as total quality. The three and produces airbag cushions, airbag modules, and steering major contributors are W. Edwards Deming, Joseph M. wheels for the North American automotive market. The Juran, and Philip B. Crosby. To these three, many would add Queretaro plant’s customers include Chrysler, Ford, General Armand V. Feigenbaum and a number of Japanese experts, Motors, Honda, Hyundai, Nissan, Mazda, Mitsubishi, such as Shigeo Shingo. Toyota, Volkswagen, and Volvo. Autoliv Queretaro received the prestigious Shingo Prize for quality by applying the principles of total quality. Deming’s Contributions The company’s mission is to create, manufacture, and sell state-of-the art automotive safety systems. Its mission is Of the various quality pioneers in the United States, the best to substantially reduce traffic accidents, fatalities, and inju- known is W. Edwards Deming. According to Deming biog- ries. Autoliv’s strategy is to be the vehicle manufacturer’s rapher Andrea Gabor: first-choice supplier of safety systems through technologi- cal leadership, complete system capabilities, highest-value Deming also has become by far the most influential safety system solutions, cost efficiency, quality excellence, proponent of quality management in the United States. global presence, highest level of service and engagement, and dedicated/motivated employees. While both Joseph Juran and Armand V. Feigenbaum Maintaining superior quality is at the heart of Autoliv’s have strong reputations and advocate approaches success. The company is committed to a zero defects phi- to quality that in many cases overlap with Deming’s losophy which it maintains by applying the following strate- ideas, neither has achieved the stature of Deming. One gies: (1) managing all new products using a five-checkpoint reason is that while these experts have often taken process, (2) using a global supplier manual that defines a mandatory supplier collaboration process, (3) requiring the very nuts-and-bolts, practical approaches to quality company’s suppliers to comply with ISO/TS 16949, and improvement, Deming has played the role of visionary, (4) incorporating the principles of the Autoliv Production distilling disparate management ideas into a compel- System into all production and support processes. The com- ling new philosophy.9 pany’s commitment to quality earned its Queretaro plant the prestigious Shingo prize for Excellence in Manufacturing. Deming came a long way to achieve the status of inter- When the Queretaro plant was selected for the Shingo Prize, it had achieved the following quality improvements: nationally acclaimed quality expert. During his formative (1) improved production efficiency by 75%, (2) reduced years, Deming’s family bounced from small town to small changeover time by 20%, (3) boosted inventory turnover town in Iowa and Wyoming, trying in vain to rise out of from 14 to 24, (4) increased units produced per week by poverty. These early circumstances gave Deming a life- 94%, (5) and maintained a 100% on-time delivery rate for long appreciation for economy and thrift. In later years, four consecutive years. Source: www.reliableplant.com/Articles/Print/4697 even after he was generating a substantial income, Deming maintained only a simple office in the basement of his modest home out of which he conducted his international consulting business. tions felt little need for his help. Corporations from other Working as a janitor and at other odd jobs, Deming countries were equally uninterested. However, World worked his way through the University of Wyoming, where War II changed all this and put Deming on the road to he earned a bachelor’s degree in engineering. He went on becoming, in Andrea Gabor’s words, “the man who dis- to receive a master’s degree in mathematics and physics covered quality.”10 from the University of Colorado and a doctorate in physics During World War II, almost all of Japan’s industry from Yale. went into the business of producing war materials. After His only full-time employment for a corporation was the war, those firms had to convert to the production of with Western Electric. Many feel that what he witnessed consumer goods, and the conversion was not very success- during his employment there had a major impact on the ful. To have a market for their products, Japanese firms direction the rest of his life would take. Deming was dis- had to enter the international marketplace. This move put turbed by the amount of waste he saw at Western Electric’s them in direct competition with companies from the other Hawthorne plant. It was there that he pioneered the use of industrialized countries of the world, and the Japanese statistics in quality. firms did not fare well. Although Deming was asked in 1940 to help the U.S. By the late 1940s, key industrial leaders in Japan had Bureau of the Census adopt statistical sampling tech- finally come to the realization that the key to competing niques, his reception in the United States during these in the international marketplace is quality. At this time, early years was not positive. With little real competition Shigeiti Mariguti of Tokyo University, Sizaturo Mishibori of in the international marketplace, major U.S. corpora- Toshiba, and several other Japanese leaders invited Deming 8  The Total Quality Approach to Quality Management to visit Japan and share his views on quality. Unlike their counterparts in the United States, the Japanese industrial- ists accepted Deming’s views, learned his techniques, and adopted his philosophy. So powerful was Deming’s impact on industry in Japan that the most coveted award a com- pany there can win is the Deming Prize. In fact, the stand- ards that must be met to win this prize are so difficult and so strenuously applied that it is now being questioned by some Japanese companies. By the 1980s, leading industrialists in the United States were where their Japanese counterparts had been in the late 1940s. At last, Deming’s services began to be requested in his own country. By this time, Deming was over 80 years old. He had not been received as openly and warmly in the United States as he was in Japan. Deming’s attitude toward corporate executives in the United States can be described as cantankerous at best. Gabor gives the following example of Deming’s dealings with the U.S. executives from Ford Motor Company: The initial contacts were unsettling for Ford. Instead of FIGURE 3 The Deming Cycle delivering a slick presentation on how the automaker could solve its quality problems—the sort of thing that repeatedly in his later years that if he had it all to do over became the stock in trade of U.S. quality experts during again, he would leave off the numbers. the 1980s—Deming questioned, rambled, and seemed to take pleasure in making a laughingstock of his listen- Deming’s Seven Deadly Diseases The Fourteen ers. During the first meeting, wearing one of his signa- Points summarize Deming’s views on what a company must ture timeworn three-piece suits, Deming glowered at the do to effect a positive transition from business as usual to car executives with steely blue eyes.11 world-class quality. The Seven Deadly Diseases summarize the factors that he believed can inhibit such a transforma- Deming’s contributions to the quality movement would tion (see Figure 5). be difficult to overstate. Many consider him the founder The description of these factors rings particularly true of the movement. The things for which he is most widely when viewed from the perspective of U.S. firms trying to known are the Deming Cycle, his Fourteen Points, and his compete in the global marketplace. Some of these factors Seven Deadly Diseases. can be eliminated by adopting the total quality approach, The Deming Cycle Summarized in Figure 3 , the but three cannot. This does not bode well for U.S. firms try- Deming Cycle was developed to link the production of a ing to regain market share. Total quality can eliminate or product with consumer needs and focus the resources of all reduce the impact of a lack of consistency, personal review departments (research, design, production, marketing) in a systems, job hopping, and using only visible data. However, cooperative effort to meet those needs. The Deming Cycle total quality will not free corporate executives from pres- proceeds as follows: sure to produce short-term profits, excessive medical costs, or excessive liability costs. These are diseases of the nation’s 1. Conduct consumer research and use it in planning the financial, health care, and legal systems, respectively. product (plan). By finding ways for business and government to 2. Produce the product (do). cooperate appropriately without collaborating inappro- 3. Check the product to make sure it was produced in priately, other industrialized countries have been able to accordance with the plan (check). focus their industry on long-term rather than short-term profits, hold down health care costs, and prevent the pro- 4. Market the product (act). liferation of costly litigation that has occurred in the 5. Analyze how the product is received in the marketplace United States. Excessive health care and legal costs repre- in terms of quality, cost, and other criteria (analyze). sent non-value-added costs that must be added to the cost of products produced and services delivered in the Deming’s Fourteen Points Deming’s philosophy United States. is both summarized and operationalized by his Fourteen Points, which are contained in Figure 4. Deming modified the specific wording of various points over the years, which Juran’s Contributions accounts for the minor differences among the Fourteen Joseph M. Juran ranks near Deming in the contributions he Points as described in various publications. Deming stated has made to quality and the recognition he has received as 9  The Total Quality Approach to Quality Management FIGURE 4 Deming’s Fourteen Points FIGURE 5 Deming’s Seven Deadly Diseases a result. His Juran Institute Inc., in Wilton, Connecticut, is. The Pareto Principle an international leader in conducting training, research, and. The Juran Trilogy consulting activities in the area of quality management (see Figure 6). Quality materials produced by Juran have been translated into 14 different languages. Juran’s Three Basic Steps to Progress Juran’s Three Juran holds degrees in both engineering and law. The Basic Steps to Progress (listed in Figure 7) are broad steps emperor of Japan awarded him the Order of the Sacred that, in Juran’s opinion, companies must take if they are to Treasure medal, in recognition of his efforts to develop qual- achieve world-class quality. He also believes there is a point ity in Japan and to promote friendship between Japan and of diminishing return that applies to quality and competi- the United States. Juran is best known for the following con- tiveness. tributions to the quality philosophy: Juran’s Ten Steps to Quality Improvement. Juran’s Three Basic Steps to Progress Examining Juran’s Ten Steps to Quality Improvement (in. Juran’s Ten Steps to Quality Improvement Figure 8), you will see some overlap between them and 10  The Total Quality Approach to Quality Management FIGURE 6 Juran Institute Inc., Quality-Related Services Provided Worldwide Source: Juran Institute Inc., www.juran.com, 2011. FIGURE 7 Juran’s Three Basic Steps to Progress Source: Juran Institute Inc., www.juran.com, 2011. Deming’s Fourteen Points. They also mesh well with the phi- although it often goes by other names. According to this losophy of quality experts whose contributions are explained principle, organizations should concentrate their energy on later in this chapter. eliminating the vital few sources that cause the majority of problems. Further, both Juran and Deming believe that sys- The Pareto Principle The Pareto principle espoused tems that are controlled by management are the systems in by Juran shows up in the views of most quality experts, which the majority of problems occur. FIGURE 8 Juran’s Ten Steps to Quality Improvement Source: Juran Institute Inc., www.juran.com, 2011. 11  The Total Quality Approach to Quality Management Quality Control The control of quality involves the fol- lowing processes: 1. Assess actual quality performance. 2. Compare performance with goals. 3. Act on differences between performance and goals. Quality Improvement The improvement of quality should be ongoing and continual: 1. Develop the infrastructure necessary to make annual quality improvements. 2. Identify specific areas in need of improvement, and implement improvement projects. 3. Establish a project team with responsibility for complet- ing each improvement project. 4. Provide teams with what they need to be able to diag- FIGURE 9 The Juran Trilogy nose problems to determine root causes, develop Source: The Juran Trilogy® is a registered trademark of Juran Institute solutions, and establish controls that will maintain Inc. (Southbury, Connecticut), www.juran.com. gains made. Crosby’s Contributions The Juran Trilogy The Juran Trilogy (Figure 9) sum- Philip B. Crosby started his career in quality later than marizes the three primary managerial functions. Juran’s Deming and Juran. His corporate background includes 14 views on these functions are explained in the following years as director of quality at ITT Corporation (1965–1979). sections. He left ITT in 1979 to form Philip Crosby Associates, an international consulting firm on quality improvement, Quality Planning Quality planning involves develop- which he ran until 1992, when he retired as CEO to devote ing the products, systems, and processes needed to meet his time to lecturing on quality-related issues. More recently, or exceed customer expectations. The following steps are Crosby had once again entered the business arena as a qual- required: ity consultant until his death in 2001. 1. Determine who the customers are. Crosby, who defined quality simply as conformance, is best known for his advocacy of zero-defects management 2. Identify customers’ needs. and prevention as opposed to statistically acceptable levels 3. Develop products with features that respond to cus- of quality. He is also known for his Quality Vaccine and tomer needs. Crosby’s Fourteen Steps to Quality Improvement. 4. Develop systems and processes that allow the organiza- Crosby’s Quality Vaccine consists of three ingredients:12 tion to produce these features. 1. Determination 5. Deploy the plans to operational levels. 2. Education 3. Implementation His Fourteen Steps to Quality Improvement are listed QUALI TY TIP 䉲 in Figure 10. The Pareto Principle The Pareto principle, named after economist Vilfredo Pareto, is more commonly known in quality circles as the 80/20 KEYS TO TOTAL QUALITY rule. This rule is used variably to contend that 80% of the SUCCESS quality issues in an organization are caused by 20% of the problems or that 80% of the problems can be traced to a Organizations that succeed never approach total quality as few critical sources (the 20%). Joseph Juran is credited just another management innovation or, even worse, as a with applying what was originally an economic principle to quick fix. Rather, they approach total quality as a new way of management and quality. He advised organizations to focus doing business. What follows are common errors organiza- the bulk of their improvement efforts on identifying and eliminating these few critical sources of problems. tions make when implementing total quality. The successful organizations avoid these errors. 12  The Total Quality Approach to Quality Management FIGURE 10 Crosby’s Fourteen Steps to Quality Improvement Source: Philip Crosby Associates, www.philipcrosby.com, 2011.. Senior management delegation and poor leader- for integrating them into all elements of the organization ship. Some organizations attempt to start a quality (i.e., operations, budgeting, marketing, etc.). initiative by delegating responsibility to a hired expert. Taking a narrow, dogmatic approach. Some organi- rather than applying the leadership necessary to get eve- zations are determined to take the Deming approach, ryone involved. Juran approach, or Crosby approach and use only the. Team mania. Ultimately teams should be established, principles prescribed in them. None of the approaches and all employees should be involved with them. However, advocated by these and other leading quality experts is working in teams is an approach that must be learned. truly a one-size-fits-all proposition. Even the experts Supervisors must learn how to be effective coaches, and encourage organizations to tailor quality programs to employees must learn how to be team players. The organi- their individual needs. zation must undergo a cultural change before teamwork. Confusion about the differences among education, can succeed. Rushing in and putting everyone in teams awareness, inspiration, and skill building. In order before learning has occurred and the corporate culture has for people to do their part in making the total quality changed will create problems rather than solve them. approach work effectively, they must have the skills to. Deployment process. Some organizations develop apply the fundamental tools of quality. Making them quality initiatives without concurrently developing plans aware of quality and inspiring them to accept it at a philosophical level are good and necessary steps in the right direction. But helping them develop the actual QUALITY TIP 䉲 skills necessary to implement the concept must also be part of the transformational process. Crosby’s Four Absolutes of Quality Management Philip B. Crosby’s contributions to quality are legion, ranging from his best-selling books on quality-related subjects to his Quality College. An enduring contribution THE FUTURE OF QUALITY from Crosby is a set of four absolutes of quality MANAGEMENT IN THE TWENTY- management. These absolutes are as follows: (1) quality FIRST CENTURY must be defined as conformance to requirements—not just as a good thing to do; (2) the best way to ensure quality is There are several trends that will shape the future of quality prevention, not inspection; (3) the standard for quality must management. These trends are as follows: be zero defects, not “close is good enough”; and (4) quality is measured by nonconformance, not indexes.. Increasing global competition. More and better com- Source: www.businessballs.com, retrieved on January 15, 2011. petition from emerging industrialized nations will be an ongoing part of life for organizations. 13  The Total Quality Approach to Quality Management. Increasing customer expectations. Today’s global cus- tury, globalization will only intensify the level of competition tomer is interested in not just the quality of a product businesses face. That is why the text you are now reading has provided but also the quality of the organization that been translated into Korean and Indonesian. The concept of backs it up. Customers want an excellent product or quality management is being adopted globally and, as a result, service from an organization that also provides accurate will continue to be applied and refined through this century. billing, reliable delivery, after-purchase support, and Companies that develop the characteristics listed above social responsibility. will be those that fully institutionalize the principles of. Opposing economic pressures. The global mar- quality management. Quality management as both a prac- ketplace exerts enormous, unrelenting pressure on tice and a profession has a bright future. In fact, in terms of organizations to continually improve quality while succeeding in the global marketplace, quality management simultaneously reducing the prices they charge for is the future. Consequently, more and more companies are goods and services. The key to achieving higher quality making quality management the way they do business, and and lower prices for customers is the reduction of the more and more institutions of higher education are offer- expenses associated with satisfying unhappy custom- ing quality management courses and programs. ers—expenses that amount to as much as 25% of the cost of sales in many companies. QUALITY CERTIFICATIONS. New approaches to management. Companies that suc- In a competitive work environment, one of the ways that ceed in the global marketplace have learned that you quality professionals can distinguish themselves, enhance manage budgets, but lead people. The old approach of their credibility, and improve their career potential is to providing an occasional seminar or motivational speech become certified in an appropriate quality discipline. The for employees without making any fundamental changes American Society for Quality (ASQ) offers certifications in the way the organization operates will no longer work. in a variety of disciplines, including Manager of Quality/ Organizational Excellence, Quality Engineer, Reliability Quality Management Characteristics Engineer, Software Quality Engineer, Quality Auditor, Six for the Future Sigma Black Belt, Six Sigma Green Belt, Quality Technician, Calibration Technician, Quality Improvement Associate, To succeed in the global marketplace for now and in the Quality Inspector, Quality Process Analyst, Hazard Analysis future, organizations need to operate according to the prin- and Critical Point Auditor, Biomedical Auditor, and ciples of quality management. Such companies will have the Pharmaceutical GMP Professional. following characteristics: The requirements for all of these certifications are. A total commitment to continually increasing value for available at the ASQ’s Web site: www.asq.org/certification. customers, investors, and employees At this Web site, there is a list of the various certifications. A firm understanding that market driven means that available through the ASQ. Simply click on the certification quality is defined by customers, not the company of interest, and all relevant information pertaining to that certification will be available. In addition, the ASQ provides. A commitment to leading people with a bias for con- assistance to potential examinees who are preparing for cer- tinuous improvement and communication tification examinations: They may find the help they need. A recognition that sustained growth requires the simul- under the heading “Prepare for the exam” at the applicable taneous achievement of four objectives continually for- page on the ASQ’s certification Web site address (www.asq. ever: (a) customer satisfaction, (b) cost leadership, org/certification). The requirements and body of knowl- (c) effective human resources, and (d) integration with edge relating to the most pertinent of these certifications— the supplier base Manager of Quality/Organizational Excellence, Quality. A commitment to fundamental improvement through Engineer, and Quality Technician—are summarized in the knowledge, skills, problem solving, and teamwork following paragraphs.. A commitment to fast-paced, constant learning, and an ability to respond quickly to changes in the competitive Manager of Quality/Organizational environment Excellence13. A commitment to achieving end-to-end collaboration using web-based, on-demand tools that are fully inte- This certification is for managers who lead and champion grated throughout the supply chain continual process-improvement initiatives, facilitates and leads team efforts to establish and monitor customer and. A commitment to maintaining an environment in supplier relations, supports strategic planning and deploy- which creativity, critical thinking, and innovation are ment efforts, assists in the development of measurement not just encouraged and supported, but demanded systems, motivates staff, evaluates staff, manages projects, As long as the concept of competition exists, there will manages human resources, analyzes budgets and finances, be a need for quality management. In the twenty-first cen- evaluates risk, and uses management tools and techniques. 14  The Total Quality Approach to Quality Management Education and Experience Requirements In Education and Experience Requirements In order order to sit for the Manager of Quality/Organizational to sit for the Quality Engineer certification examination, Excellence examination, individuals must have ten years individuals must have a minimum of eight years of work of experience in one or more of the following areas: lead- experience in one or more of the following disciplines: man- ership, strategic plan development and deployment, man- agement and leadership, the quality system, product and agement elements and methods, quality management process design, product and process control, and continu- tools, customer focus, supply chain management, and ous improvement. Waivers of part of the experience require- training and development. At least five of the ten years of ment are available to individuals who have completed a experience in one or more of these areas of expertise must diploma or degree from an institution accredited by the ASQ be at the decision-making level. Education waivers of up as follows: (1) one year for a technical diploma, (2) two years to five years are allowed for individuals who have com- for an associate degree, (3) four years for a baccalaureate pleted a diploma or degree from an institution accredited degree, and (4) five years for a masters or doctorate degree. by the ASQ. The waivers apply as follows: (1) one year for a technical diploma, (2) two years for an associate degree, Examination Topics The ASQ provides a practice exami- (3) four years for a baccalaureate degree, and (4) five years nation that helps prospective examinees find out what the test for a master or doctorate degree. covers and what areas or topics they might need to review more thoroughly. The body of knowledge covered on the examina- Examination Topics The ASQ offers a practice exami- tion for certification as a Quality Engineer is as follows: nation that helps prospective examinees determine what the test covers and what areas or topics they might need to Management and Leadership. Topics include quality review more thoroughly. The body of knowledge covered on philosophies and foundations, the quality management the examination for certification as a Manager of Quality/ system, the ASQ Code of Ethics, leadership principles Organizational Excellence is as follows: and techniques, facilitation principles and techniques, communication skills, customer relations, supplier Leadership. Organizational structures and culture, management, and barriers to quality. leadership challenges, team and team processes, and the The Quality System. Topics include elements of the ASQ Code of Ethics. quality system, documentation of the quality system, Strategic Plan Development and Deployment. quality standards and other guidelines, quality audits, Strategic planning models, business environment analy- cost of quality, and quality training. sis, and strategic plan deployment. Product and Process Design. Topics include classifica- Management Elements and Methods. Management tion of quality characteristics, design inputs and review, skills and abilities, communication skills and abilities, technical drawings and specifications, design verifica- project management, quality systems, and quality mod- tion, and reliability/maintainability. els and theories. Product and Process Control. Topics include tools, Quality Management Tools. Problem-solving tools, material control, acceptance sampling, measurement process management, and measurement/metrics. and testing, metrology, and measurement analysis. Customer-Focused Organizations. Customer identi- Continuous Improvement. Topics include quality fication, segmentation, and relationship management. control tools, quality management planning tools, con- Supply Chain Management. Supplier selection, sup- tinuous improvement techniques, corrective action, plier communications, supplier performance, supplier and preventive action. improvement, supplier certification/partnerships/alli- Quantitative Methods and Tools. Topics include col- ances, and supplier logistics. lecting and summarizing data, quantitative concepts, Training and Development. Training plans, needs probability distributions, statistical decision making, analysis, training material/curriculum development and relationships between variables, statistical process con- delivery, and training effectiveness/evaluation. trol, process and performance capability, and design and analysis of experiments. Quality Engineer14 Quality Technician15 The Quality Engineer certification is for individuals who develop and operate quality control systems, apply and ana- This certification is for paraprofessionals who—under lyze testing and inspection procedures, use metrology and the direction of quality engineers and managers—analyze statistical systems to diagnose and correct quality problems, and solve quality problems, prepare inspection plans and understand human factors and motivation, understand instructions, select applications for sampling plans, prepare quality cost techniques, develop and administer manage- procedures, train inspectors, perform audits, analyze quality ment information systems, and audit quality systems for data, analyze quality costs, and apply basic statistical meth- identifying deficiencies and correcting them. ods for process control. 15  The Total Quality Approach to Quality Management Education and Experience Requirements In order Statistical techniques. Topics include general con- to sit for the Quality Technician examination, individu- cepts, calculations, and control charts. als must have at least four years of higher education and/or Metrology and Calibration. Topics include measure- work experience in one or more of the following disciplines: ment and test equipment and calibration. quality concepts and tools, statistical techniques, metrology Inspection and Testing. Topics include blueprint and calibration, inspection and testing, quality audits, and reading and interpretation, inspection concepts, inspec- preventive/corrective action. Education waivers of up to tion techniques and processes, and sampling. three years are allowed for individuals who have completed a certification program or degree from an institution accred- Quality Audits. Topics include audit types, audit com- ited by the ASQ. The waivers apply as follows: (1) one year ponents, and tools/techniques. for certification through the Quality Technology program of Preventive and Corrective Action. Topics include pre- a community college or technical school, (2) two years for ventive action, corrective action, and nonconforming an associate degree, and (3) three years for a baccalaureate, material. masters, or doctorate degree. For more detail concerning the certification exami- nations, readers are encouraged to visit the certification Examination Topics The ASQ offers a practice exami- pages of the ASQ’s Web site: www.asq.org/certification. nation that helps prospective examines find out what the Details concerning study materials, costs, examination test covers and what topics they might need to review more dates, and application procedures are provided on these thoroughly. The body of knowledge covered on the exami- pages. nation for certification as a Quality Technician is as follows: Quality Concepts and Tools. Topics include quality concepts, quality tools, and team functions. SUMMARY leadership; team mania; the deployment process; a nar- row, dogmatic approach; and confusion about the dif- 1. Quality has been defined in a number of different ways. ferences among education, awareness, inspiration, and When viewed from a consumer’s perspective, it means skill building. meeting or exceeding customer expectations. 8. Trends affecting the future of quality management 2. Total quality is an approach to doing business that include increasing global competition, increasing cus- attempts to maximize an organization’s competitiveness tomer expectations, opposing economic pressures, and through the continual improvement of the quality of its new approaches to management. products, services, people, processes, and environments. 3. Key characteristics of the total quality approach are KEY TERMS AND CONCEPTS as follows: strategically based, customer focus, obses- sion with quality, scientific approach, long-term com- Bottom-up education and training mitment, teamwork, continual process improvement, Continual process improvement bottom-up education and training, freedom through control, unity of purpose, employee involvement and Crosby’s Fourteen Steps to Quality Improvement empowerment, and peak performance. Crosby’s Quality Vaccine 4. The rationale for total quality can be found in the need Customer focus to compete in the global marketplace. Countries that Deming Cycle are competing successfully in the global marketplace are Deming’s Fourteen Points seeing their quality of living improve. Those that cannot are seeing theirs decline. Deming’s Seven Deadly Diseases 5. W. Edwards Deming is best known for his Fourteen Employee involvement and empowerment Points, the Deming Cycle, and his Seven Deadly Freedom through control Diseases. Global customer 6. Joseph M. Juran is best known for Juran’s Three The Juran Trilogy Basic Steps to Progress, Juran’s Ten Steps to Quality Long-term commitment Improvement, the Pareto Principle, and the Juran Trilogy. Obsession with quality 7. Common errors made when starting quality initia- Pareto Principle tives include senior management delegation and poor Peak Performance 16  The Total Quality Approach to Quality Management Quality Ford’s attitude toward customers to the modern atti- Quality control tude of customer-driven quality? Quality improvement 3. Are global consumers spoiled and unrealistic in their expectations, or are they finally demanding their rights Quality planning in the marketplace? Scientific approach 4. How has the worldwide demand for quality driven the Teamwork concept of innovation? How has innovation changed Total quality your life? TQC (Total Quality Control) TQL (Total Quality Leadership) DISCUSSION ASSIGNMENT 1 TQM (Total Quality Management) Winning and Longevity Unity of purpose A professional baseball team set its sights on winning the World Series. The team owner wanted to win big and win FACTUAL REVIEW QUESTIONS fast. Consequently, the team sank all of its resources into trading for the best players in the league. It was able to 1. Define the term quality. obtain enough of them that within two seasons the team was 2. What is total quality? the World Series champion. However, the team had com- mitted such a high percentage of its financial resources to 3. List and explain the key elements of total quality. players’ salaries that other important elements of the team 4. Explain the rationale for the total quality approach to began to suffer. Its stadium quickly fell into such a state of doing business. disrepair that fans began to stay home. Training facilities 5. Describe the following concepts: also began to suffer, which caused discontent among the. Deming’s Fourteen Points players. The money left over to pay the salaries of coaches. The Deming Cycle wasn’t enough to hold onto the good ones, most of whom accepted better offers from other teams. In short, by focus-. Deming’s Seven Deadly Diseases ing so intently on the desired end result, this organization 6. List and explain Juran’s main contributions to the qual- neglected other important aspects of building a competitive ity movement. team. As a result, the team’s World Series championship 7. Why do some quality initiatives fail? was a short-lived once-in-a-lifetime victory. The very next season the team’s crumbling infrastructure sent it tumbling 8. For what contributions to the quality movement is to the bottom of its division. Without the people, processes, Philip B. Crosby known? and environment to turn the situation around, the team was 9. Summarize the most common errors made when start- eventually sold at a loss and moved to another city. ing quality initiatives. 10. Explain the trends that are affecting the future of quality DISCUSSION QUESTIONS management. Discuss the following questions in class or outside of class with your fellow students: CRITICAL THINKING ACTIVITY