BM1708

UNDERSTANDING QUALITY
What is Quality?
• It is the standard of excellence of a product or a service.
• Quality starts with understanding customer needs and ends when those needs are satisfied.
• The totality of features and characteristics of a product and service characteristics of marketing,
engineering, and manufacturing through which the product and service in use will conform to the
present and future expectations set by the customer.

EXAMPLE: One way to understand quality as a consumer-driven concept is to consider the example of
eating at a restaurant. How will you judge the quality of the restaurant?

Most people apply the following criteria in judging the quality of a restaurant: service, response time,
food preparation, environment or atmosphere, price, and selection.

All these attributes are essential and critical to measure one aspect of quality – the results aspect.
However, total quality approach encompasses a broader scope including the quality of people and
quality of processes.

Total Quality Approach

Total quality is an approach to maximize the competitiveness of people, processes, products including
services, and environments through continual improvement. With total quality, anything and everything
that affects quality is a target for continual improvement. When the total quality concept is effectively
applied, the end results can include organizational excellence, superior value, and global competitiveness.

EXAMPLE: An easy way to grasp the concept of total quality is to consider the analogy of a three-legged
stool. The seat of the stool is customer focus. This means that the customer is in the “driver’s seat” as
the primary negotiator of what is acceptable in terms of quality. Each of the three (3) legs is a broad
element of the total quality philosophy: measures, people, and processes.
o Measures – quality can be and must be measured (i.e., statistical process control, benchmarking).
o People – quality must be built in by people who are empowered to do their jobs the right way.
o Processes – it must be improved continually and constantly. What is considered excellent today
may be just mediocre tomorrow. Consequently, “good enough” is never good enough.

Two Views of Quality

• Traditional view of quality – focuses on inspection of products after development; employees are
considered as passive workers adhering only to the orders of their superiors.
• Total quality perspective – focuses on continual improvement of products, processes, and people
during the process of development in order to prevent future problems. Employees are empowered
to think and make recommendations for continual improvement.
The following statements explain some of the major differences between the traditional view of quality
and the total quality perspective:

01 Handout 1 *Property of STI

Page 1 of 4
 BM1708

TRADITIONAL VIEW TOTAL QUALITY VIEW

Productivity versus Productivity and quality are Lasting productivity gains are
quality always in conflict; it is difficult to
made only as a result of quality
achieve both. improvements.
How quality is defined Quality is defined solely as Quality means satisfying
meeting customer specifications. customer needs and exceeding
customer expectations.
How quality is measured Quality is measured by Quality is measured by
establishing an acceptable level establishing high-performance
of measure against a benchmark. benchmarks for customer
satisfaction and continually
improving performance.
How quality is achieved Quality is determined by product Quality is determined by product
inspection. and process design and achieved
by effective control techniques.
Attitude toward defects Defects are an expected part of Defects are to be prevented
producing a product. using effective control systems.
Quality as a function Quality is a separate function. Quality should be fully integrated
throughout the organization and
it should be everybody’s
responsibility.
Responsibility for quality Employees are blamed for poor At least 85% of quality problems
quality. are management’s fault.
Supplier relationships Supplier relationships are short- Supplier relationships are long-
term and cost-driven. term and quality-oriented.

Key Elements of Total Quality

• Strategically Based – it includes the formulation of a strategic plan incorporating the following
elements: vision, mission, broad objectives, and activities that must be completed in order to
accomplish the broad objectives while integrating quality as a core component.
• Customer Focus – in a total quality setting, the internal and external customer is the driver. External
customers define the quality of the product or service delivered while internal customers define the
quality of the people, processes, and environments associated with the products or services.
• Obsession with Quality – the organization must become passionate with meeting or exceeding quality
of outputs through continuous improvement.
• Scientific Approach – this involves the ways in structuring work, decision-making, and problem solving
by utilizing hard data in establishing benchmarks, monitoring performance, and making improvements.
• Long-term Commitment – it involves implementation of new corporate culture in the entire
organization to achieve future success and long term growth.
• Teamwork – in traditionally managed organizations, the best competitive efforts are often among
departments within the organization. Internal competition tends to use energy that should be focused
on improving quality which will eventually result to external competitiveness.
• Continual Process Improvement – products are developed and services are delivered by people using
processes/systems within environments to continually improve the quality of products or services.

01 Handout 1 *Property of STI

Page 2 of 4
 BM1708

• Education and Training - these are fundamental to total quality as it improves people on a continual
basis. It is through education and training that people who know how to work hard learn how to also
work smart.
• Freedom through Control – it pertains to the concept that humans should control the processes and
work methods and must not rely completely on technology to reduce variations in output.
• Unity of Purpose - this means that internal politics have no place in a total quality organization. Rather,
collaboration should be the norm. Employees should feel more involved and empowered in a total
quality setting than in a traditionally managed situation. Unity of purpose means that all employees
must work toward a common goal.
• Employee Involvement and Empowerment - the basis for involving employees is two (2) folds. First, it
increases the likelihood of developing a good decision or plan. Second, it promotes ownership of
decisions. Empowerment is not just involving people but also involving them in ways that give them a
real voice like structuring work that allows employees to make decisions concerning the improvement
of work processes within specified parameters.
• Peak Performance - this means that all personnel and processes are operating at their best possible
performances. This is essential to organizations that operate in a global environment where
competition is intense, constant, and unforgiving.

Quality Gurus
• William Edwards Deming – he is the proponent of the Deming Cycle which links the production of a
product to consumer needs and focuses the resources of all departments (research, design,
production, and marketing) in a cooperative effort.
Deming Cycle – A four-part management method that preaches continuous improvement. The
Deming Cycle is made up of:
o Plan: Choose a process and set objectives.
o Do: Implement the plan and begin collecting data on the results.
o Check/Study: Analyze the results using statistical methods.
o Act: Decide what changes to make in order to improve the process.
• Joseph M. Juran – he was an evangelist for quality and quality management. He is the proponent of
the Pareto Principle which states that majority or 80 percent of the results in the business operations
come from the minority or 20 percent of the causes. The 80 percent result may refer to the problems
of the organization which is caused by 20 percent of reasons. Therefore, organizations should
concentrate their energy on eliminating the vital sources of the problems.
• Philip B. Crosby – he was a businessman and author who is best known for his advocacy of zero-defects
management and prevention as opposed to statistically acceptable levels of quality.

Hindrances to Total Quality

The following are the common errors organizations commit when implementing total quality
management in the business:
• Senior management delegation and poor leadership – organizations delegate responsibility to a
hired expert by means of outsourcing rather than applying the actions necessary to get everyone
involved. Managers must empower employees through delegation of responsibility in order to make
the employees accountable for their actions within the organization.

01 Handout 1 *Property of STI

Page 3 of 4
 BM1708

• Team mania – managers form different teams prior to the implementation of a cultural change
within the organization. Restructuring the organization by forming teams will not succeed if
supervisors are not trained to be good coaches and if employees do not know how to be team
players. Prior to forming of teams, managers must conduct training for supervisors and employees
to establish team spirit.
• Deployment process – organizations develop quality initiatives without concurrently developing
plans for integration to all elements of the organization like marketing or finance. Managers must
conduct a planning phase that identifies the most effective approach that will suffice the needs of a
particular department within the organization.
• Taking a narrow, dogmatic approach – organizations dive into the application of Deming approach,
Juran approach, or Crosby approach without tailor-fitting the quality programs based on the need of
their own organization. The management must assess the applicable concepts and adjust the
principles of the chosen quality approach prior to actual implementation to the organization.
• Confusion about the differences among education, awareness, inspiration, and skill building –
employees are less inclined to work together because of their individual differences. Organizations
must train their employees to develop the skills needed in the execution of the fundamental tools of
quality.

Quality Certifications
The American Society for Quality (ASQ) offers certifications in a variety of disciplines like:
• Manager of Quality/ Organizational Excellence – s/he should be able to motivate and evaluate staff,
manage projects and human resources, analyze financial situations, determine and evaluate risk, and
employ knowledge management tools and techniques in resolving organizational challenges.
• Six Sigma Black Belt – s/he is responsible in improving the quality of the output of a process by
identifying and removing the causes of defects and minimizing variability in manufacturing and
business processes.
• Quality Improvement Associate – s/he must have a knowledge of quality tools and their uses and
must be involved in quality improvement projects of their organization.

References:
Asq.org (2018). What is total quality management (TQM)? Retrieved March 27, 2018, from
http://asq.org/learn-about-quality/total-quality-management/overview/overview.html
Black Belt Certification. (n.d.). Retrieved from https://www.iassc.org/six-sigma-certification/black-belt-
certification/
Dale, B.G., Bamford, D., & Van delr Wiele, T. (2016). Managing quality: An essential resource guide and resource gateway: Sixth
edition. West Sussex: John Wiley & Sons Limited.
Goldstein, S. & Schroeder, R. (2018). Operations management in the supply chain: Seventh edition. New York: McGraw-Hill
Education.
Heizer, J., Render, B., & Munson, C. (2017). Operations management: Sustainability and supply chain management (12th ed.).
Boston: Pearson Education, Inc.
Johnston, R., Jones, A., Slack, N. (2016). Operations management: Eight Edition. Pearson Education Limited.
R. (n.d.). Freedom through control processes and work methods. Retrieved from
https://www.coursehero.com/file/p3tfnd1g/Freedom-Through-Control-Processes-and-work-
methods-should-be controlled-by/
Stevenson, J. (2015). Operations management: Twelfth edition. New York: McGraw-Hill Education.
Pareto principle. (n.d.). Retrieved from http://www.businessdictionary.com/definition/Pareto-principle.html

01 Handout 1 *Property of STI

Page 4 of 4