QUALITY MANAGEMENT

TRAINING MANUAL
BADM 370

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Kelli Padilla
10/26/19
Contents
Introduction .................................................................................................................................................. 2
Roles of leadership........................................................................................................................................ 4
General Quality Strategies and Tools............................................................................................................ 6
Introduction
The first sight of an origin for quality management can be found in the late years of the

13th century in medieval European guilds (asq.org). Unions of craftsmen formed to call

themselves guilds. These guilds worked to develop inspection committees and standards for

product quality and service for those committees to operate by and reinforce. These committees

created the first “stamp of approval”, by marking goods with their symbol that would ensure

their soundness. These same practices for achieving flawlessness in a product or service started

to build the foundation of quality management throughout the world.

The American industrial revolution brought mass manufacturing to factories and boosted

the American economy substantially. In the 1800’s American manufacturing practices where

focused around three production methods: craftsmanship, the factory system and the Taylor

system. Craftsmanship practices followed similar standards that were used and set but companies

in Europe, where trades where passed down to apprentices who developed mastery skills. Since

the industrial revolution grew at such an exponential rate in America, this practice catered more

closely to those who only produced and traded locally. The factory system created a method

divided the individual’s task into specialized tasks to encourage faster production rate. This took

the sense of pride out of the work that craftsman once held. The product was deemed to have

good quality if the end product met all the standards that where set forth. The American

standards and practices of quality management would continue to expand from its European

origins with the help of a few key individuals.

The first American innovator Frederik W. Taylor followed a new management approach

by utilizing specialized engineers, craftsmen and supervisors. He created a method that would

focus more on production speed and less on the skill level of the craftsmen. Taylors remedy was
successful in increasing product output but the overall productivity suffered. Since workers had

been stripped of their ownership on the product and their individual jobs, the overall quality of

products had a deterioration. American industry proprietors recognized this problem and looked

to improve the process across the board.

W. Edwards Deming a statistician with the U.S. Department of Agriculture and Census

Bureau and Walter Shewart, a statistician for Bell Laboratories reshaped quality management to

improve safety and overall quality improvement, working to examine the entire process and

production methods being used. Although Deming had reputable methods, during World War II

production methods often bypassed such theories to meeting production deadlines. Once the war

came to an end thus terminating most government contracts, Walter Shewhart’s statistical quality

control techniques fell to the wayside.

Deming continued to express his frustration with the post war production quality as did

others who wished to improve the production industry and increase profitability and reputation

of the American quality. After Japan had experienced the shut out of their goods in international

markets they refurbished their production standards and quality assurance that would inspire

Joseph M Juran. Deming and Juran’s methods developed what is now known as total quality

management (TQM). Total quality management is a collection of ideas and using the resources

from across every aspect of the company. This collaboration works to propel an ever-changing

process forward. This type of management has worked to provide some grease to an aging way

of running an organization. Total quality management provides a certain level of accountability

for mid-level management and asks the process to be examined rather than the individual

employee or work group. The assurance of the quality is of more importance rather than just

checking the quality with total quality management. This is assured through measuring,
examining, and testing products, process and services against specified requirements to

determine conformity (BPIR.com, 2015). Every employee is involved under total quality

management in an effort to keep a company continuously flowing towards improvement. A

constant strive for improvement is one factor that keeps quality management relevant.

Aside from ensuring a product or service is finished and safe quality management allows

the process of production to be observed and assessed with intent of learning from the results.

Since quality management considers customer satisfaction to be the distinguishing agent of

success in a product’s quality, the process of TQM consists of a series of steps that observes

inputs and outputs that end with the customers. The steps consist of measuring an organization

through measuring and analyzing data that can help improve decision making accuracy, achieve

consensus, and allow prediction based on the company’s history. This level of analyzing takes

what is normally a subjective approach and converts the process into an objective approach. The

strategic methodology involved in total quality management requires sound management and

leadership.

Roles of leadership
Senior leadership one of the initiating forces that propels quality management and quality

improvement programs and works as a foundation for the program to stand on. Senior leadership

works to clearly articulate goals for the organization and stay true to the organization’s vision

and mission. In addition to defining the organization ns mission and values, senior leadership’s

will use those to identify operational objectives, and short- and long-term expectations. By

creating a strong leadership system, this will work to set the direction for a quality management

and improvement by creating specific scopes for every department. To achieve a high
performance level based on these standards, leadership will also develop strategic quality plans

to put projected objectives into action; much like Demming and Juran had in the past.

A strategic plan should identifies clear goals within each scope that define the expected

outcomes of the overall quality management plan. The goals set forth should be based on the

resources available and use fact based indicators to measure the progress of those goals

(hsra.gov). The strategic quality plans will include systematic cycles of planning from senior

leadership, execution by that work groups and evaluations that view internal and external

resources and barriers. Senior leadership will concentrate on the key processes that have an

effect on the production and other stakeholders associated with the organization.

Though vision and strategy are key to developing a successful quality management and

improvement program, this correlation could not be complete without the support infrastructure

carried out daily by day to day operations employees and their managers. This is achieved by

investing in employees skills and further training and working to identify those who display

expertise and strive for continuous improvement. Senior leaders must show strong endorsement

support and participation in the quality management program. If this is not present the

foundation in which the program was built begins to disintegrate. It is the responsibility of senior

leadership to follow through on the goals and objectives set for themselves and the departments

they are responsible for. A strong exhibition of dedication from leadership to the program

encourages other to follow. A successful implementation of a QI program begins with an honest

and objective assessment of an organization's current culture, and its commitment to improving

the quality of its care and services.

General Quality Strategies and Tools
Quality management is a concept that is relevant across all businesses large and small.

The core of quality management is being able to guide an organization towards continuous

improved performance. There are several quality management tactics that will be discussed but

each quality management method has three main components to quality management: quality

assurance, quality control, and quality improvement. Quality improvement methods are driven

by a handful of components such as leadership, creativity, innovation, and employee

involvement. One of the most important modules to consider first is establishing a company’s

customer expectations.

Customers are the people who buy the products and services and keep a company in

business. Customers can be another business or the general public but, one thing is certainly

needed for success is; identifying and targeting the organization’s market and their needs. This is

in most cases an ever evolving process but can be identified through customer surveys. These

surveys will consider the quality of services and how competitive the price is, prompt responses

to their inquiries and level of customer service, the speed and efficiency of their service and how

trained the staff is among other things. Input from surveys can narrow down executive decisions

and ultimately save time and money for the company by not wasting resources on things the

customer would not prefer in the first place. It is important to identify the needs of the customer

and ensure their needs are not only met but exceeded. Word of mouth is a factor that can make

and break an organization. It has been reported that the average customer who is dissatisfied will

tell nine or ten others about it. This holds a considerable amount of importance considering that

it costs a company six times more to gain a new customer than to keep a current one (cite book).

What customers think, and feel about a company and its products is a key aspect of business
success. Dealing with customer expectations is considering the external factors of a business.

When executives are considering the internal factors they rely on the managers and line

employee’s expertise to measure quality through metrics.

Defining metrics is a useful tool that can aid in this process of identifying the

effectiveness of quality in a company. The quality of a product or service has a reach that

extends too many different parts of a business. This alone ensures it is critical to establish a

comprehensive metrics that provide insight on the most important areas of operations. General

metrics to consider are: cost of quality, overall equipment effectiveness, percentage of products

in compliance, on time and complete shipment of products or a service and new products

introduction (Littlefield, M, 2012). Cost of quality measures the cost an organization will suffer

to manufacture a quality product or service. This metric will consider the cost for good

producing a good product or services as well as poor. When a manager considers the overall

equipment effectiveness, this generally applies to manufacturing but can also be applied to a

service as well when employees are considered as an asset. An overview of the effectiveness

considers how often an asset is available compared to how often an asset is producing the

product or service to the customer additionally how often that product or service is meeting the

standards for satisfactory quality. This type of metric is simple to comprehend when dealing with

output of product, not so much for a service but can still be measured by customer surveys

geared towards customer service. Percentage of products in compliance is again, something that

is simple for a product. For services a manager would need to consider the standards for

certification and training for their employee’s scope of practices. Metrics such as these have been

formalized in total quality management approaches and tools such as the Kaizen method, mistake

proofing and Six Sigma methods. These methods focus on improvement of quality by providing
a continuous loop of leadership’s knowledge but differ in their major focus, measures and

drivers.

Kaizen measures quality through long-term sights while focusing on continuous and

incremental improvements. One of the earliest examples in the United States was at National

Cash Register Company (Evans, p152). The Kaizen method is one that works well with slow

growth economy in creating the most value while consuming the least resources. The Kaizen

method measures success by the method’s ability to speed up change process and more

importantly finalize the solutions into standardized processes expeditiously. Kaizen is usually

driven by the company’s need to formalize a method for improvement.

Mistake proofing concentrations on eliminating waste, improving work flow. This process

had been widely used in the fast food industry. This is done by identifying potential causes for

failure and likelihood of those failure and the corrective actions and controls that will eradicate

those stoppages. Measures of improvement include cycle time and turnover on inventory. This

process is mostly driven by customer satisfaction, the value added back to the company and

probability.

Six sigma focuses on reducing variation, and improving process capability and has been

applied to companies small and larger. The method measures success statistically by considering

the defects per million (Methodology, 2015). Major drivers for implementing Six Sigma from an

organization include aiming for high customer satisfaction and improvement of quality in

services and products. Six sigma focuses on finding what is critical to quality and what is

considered critical to customers and the profitability.

Lead to : Quality Tactics and the Logistics and Supply Chain Functions
References

Davids, M. "W. Edwards Deming (1900–1993) Quality Controller." Journal of Business

Strategy 20, no. 5 (1999): 31–32.

Evans. (2014). Quality & Performance Excellence, 7th Edition. [VitalSource Bookshelf version].
Retrieved from http://online.vitalsource.com/books/9781133955931/page/152

History of Total Quality Management. (2015). Retrieved October 12, 2015, from
http://asq.org/learn-about-quality/total-quality-management/overview/tqm-history.html

Littlefield, M. (2012, June 15). Top 5 Must Have Quality Management Metrics for the Executive
Dashboard. Retrieved October 25, 2015, from http://blog.lnsresearch.com/bid/142495/Top-5-
Must-Have-Quality-Management-Metrics-for-the-Executive-Dashboard

Part 2: Before Beginning - Establish an Organizational Foundation for QI. (2011). Retrieved
October 18, 2015, from http://www.hrsa.gov/quality/toolbox/508pdfs/qualityimprovement.pdf

QUALITY AND TOTAL QUALITY MANAGEMENT. (n.d.). Retrieved October 6, 2015,

from http://www.referenceforbusiness.com/management/Pr-Sa/Quality-and-Total-Quality-
Management.html

Total Quality Management History of TQM and Business Excellence BPIR.com. (2015).
Retrieved October 6, 2015, from http://www.bpir.com/total-quality-management-history-of-tqm-
and-business-excellence-bpir.com.html