Total Quality Management by Danica Doudican
 

Table of Contents
What is Total Quality Management
The Voice of the Customer
Quality Function Deployment
The Seven Basuc Tools
The Seven New Management Tools
Continuous Improvement
Total Quality Control
Quality Training
Implementing Total Quality Management
Conclusion
Bibliography



What is Total Quality Management?
One definition of total quality management (TQM) is “long term growth through improved customer satisfaction.” A generation ago, United States companies found themselves trailing behind their Japanese counterparts.  Unemployment and inflation rates were setting record highs.  Foreign goods were controlling most of the markets.  US companies were on the verge of bankruptcy.  One word continually popped up when analyzers started to ask questions: quality.  Quality is a difficult term to define.  Either a product has quality or it does not.  Consumers recognize it when they see it.  Just the manufacturer cannot determine quality components.  A manufacturer can produce what they think is a quality product, but unless it meets the consumer’s standards it will never be considered a quality product.  Finally realizing that American goods were inferior to foreign competitors’ products in quality, corporations instituted programs that followed the principles of W. Edwards Deming.  Deming was a pioneer in the science of business quality.  He had started his teaching in places that would listen, like Japan.  And it was those same Japanese firms who had taken over much of the goods markets.  Once American companies adopted quality programs, their products competed better.
As time has evolved, total quality management has been realized as an essential part of doing business.  Today, providing excellent products and services is every business’s goal.  TQM is a philosophy that makes quality values the driving force behind leadership, design, planning, and improvement initiatives.  A major objective of TQM is to provide high-quality services to customers by maintaining a constant focus on the customers’ viewpoints and needs.

The Voice of the Customer
 The purpose of the voice of the customer within total quality management is to know the customer’s expectations, voiced desires, and unperceived turn-ons.  It is literally impossible to be competitive in international markets unless a company can define its customers’ needs.  In order to meet those needs and expectations at a price that they are willing to pay, a company must first know them.  The purpose of quality management is to deploy the quality necessary to satisfy and even delight the customer.  If an inaccurate representation of the customer’s desires is obtained, the process will fine-tune the system to bring forth the wrong product.  Obtaining the voice of the customer accurately is critical for the proper application of planning and designing a product.

Quality Function Deployment
 Most Americans associate quality function deployment (QFD) with the “House of Quality.”   It is a system engineering process that transforms the desires of the customer into the language required to implement a product.  It provides the glue necessary to tie together all project levels in order to manage the product.  It is an excellent method for assuring that the customer obtains high value from a product, the intended purpose of QFD.  It is a mechanism for deploying quality, reliability, cost, and technology throughout the product, the project to bring forth the product, and the enterprise as a whole.  Yoji Akao introduced the concept of quality function deployment in Japan in 1966.  According to Akao, quality function deployment  “is a method for developing a design quality aimed at satisfying the consumer and then translating the consumer’s demand into design targets and major quality assurance points to be used throughout the production phase . . . [QFD] is a way to assure the design quality while the product is still in the design stage.”  Akao also points out that when QFD is appropriately applied, it demonstrates a reduction of development time by one-half to one-third.
 Quality function deployment is a structured process, a visual language, and a set of inter-linked engineering and management charts whish uses the seven new management tools.  It establishes customer value using the voice of the customer and transforms that value to design, production, and manufacturing process characteristics.  The result is a system engineering process that prioritizes and links the product development process so that it assures product quality as defined by the consumer.

The Seven Basic Tools
 These tools are the “classic” TQM tools used in evaluating processes.  They are as follows: histograms, cause and effect diagram, check sheets, pareto diagrams, graphs, control charts, and scatter diagrams.

The Seven New Management Tools
 The seven new tools compose a rich visual language that allows the user to easily explore and decompose complexity that cannot be dealt with otherwise.  They were chosen to meet the following criteria:
The ability to complete tasks
The ability to eliminate failure
The ability to assist in the exchange of information
The ability to disseminate information to concerned parties
The ability to use “unfiltered expression”
The seven tools are as follows: relations diagram, affinity diagram, systematic (tree) diagram, matrix diagram, matrix data analysis, process decision program chart, and arrow diagram.

Continuous Improvement
 Continuous improvement seeks continual improvement of machinery, materials, labor utilization, and production methods through application of suggestions and ideas of team members.  The idea is that improvement in quality is always possible.  An important part of continuous improvement is benchmarking.  While continuous improvement is easy to do internally for an organization, benchmarking, an external comparison against other is not quite so easy.  The idea is to identify industry leaders and competitors and see what they are doing.  A firm can look to find the best and most successful industry practices and see how those practices can be adapted to that organization.  Continuous improvement utilizes benchmarking to help organizations continually rejuvenate and strive for top quality in their service or product.  Continuous improvement does this by taking into consideration the management, production, and marketing of a product.
 Continuous improvement uses a process that follows the plan-so-check-act-cycle.  In the plan stage, the situation is analyzed and the improvement is planned.  In the do stage, the improvement is tried.  In the check stage, data is gathered to see how the new approach works, and in the act stage the improvement is either implemented or a decision is made to try something else.  This process of continuous improvement makes it possible to reduce variations and lower defects to near zero.  The processes that produce good results are standardized and documented.  The documented processes are followed.  If the process is changed the documentation is changed.  If an organization lacks this standardization, then improvement tends to slip.  Without standardization, variation is increased rather than decreased.

Total Quality Control
 Total quality control is the system developed to implement continuous improvement.  Total quality control is a forty-year plus improvement on the teachings of Deming.  It is where the rubber meets the rod in terms of putting quality into place, both within the product and within the system to bring forth, sustain, and retire the product.  The tools of total quality control include the seven basic tools and the seven new management tools among others.  These tools are the power behind the process since they enhance the way people think.
 Total quality control typically progresses through three phases.  The first phase is awareness where the need for quality control is recognized and basic principles are learned.  The second phase is empowerment.  Empowerment is learning the methods of total quality control and developing the skill in practicing the methods.  Alignment is the third phase in which the business is harmonized with total quality control and the practices of the company.

Quality Training
 According to a recent survey conducted by Purchasing Magazine, 53% of the companies polled provide quality training of some sort.  Quality training provides employees with more information and a better understanding in order to improve their level of communication.  The idea is that if an employee understands the internal processes and how they fit into the big picture, it will be easier for an employee to feel more responsible and willing to contribute to programs within the TQM and continuous improvement realm.  There are two ways to train employees: in-house and outside assisted.
 In-house training is noted for being cost effective.  It costs less than hiring an outside firm to assist; so, the cost payoff is felt sooner.  It is estimated that 98% of quality training is done in house.  It is flexible, offers direct contact, and is based on actual experiences inside the organization.  Outside training is useful in situations like the Y2K bug when companies are not equipped with the means to improve certain situations.

Implementing Total Quality Management
 Many companies continue to demonstrate improvement in achieving high quality and business performance while others abandon their efforts toward TQM programs.  Frustrated by the lack of visible results, some organizations question its credibility and view as a management fad.  Failure rates as high as 60% have been quoted in literature.  The question of why TQM is failing needs to be addressed.  When a TQM system has failed, it is not because of there was a basic flaw in the principles of TQM, but because an effective system was not created to execute TQM principles. TQM requires unwavering organizational commitment, substantial time and effort, and drastic changes in the organizational culture and business practices.
 The following characteristics are crucial to the a successful TQM implementation: strong top management leadership and commitment, customer focus, employee involvement and empowerment, a focus on continuous improvement, supplier partnerships, and the recognition of quality as a strategic issue in business planning.  Other needed characteristics are the use of statistical tools, product and service quality in design, performance measures focusing on quality, actions based on facts, and the role of a quality department and quality specialists.

Conclusion
Quality is a difficult term to define.  Either a product has quality or it does not.  A manufacturer can produce what they think is a quality product, but unless it meets the consumer’s standards it will never be considered a quality product.  Once American companies adopted quality programs, our products competed much better.  TQM is a philosophy that makes quality values the driving force behind leadership, design, planning, and improvement initiatives.  The purpose of quality management is to deploy the quality necessary to satisfy and even delight the customer.   Most Americans associate QFD with the “House of Quality.”  It is a system engineering process that prioritizes and links the product development process so that it assures product quality as defined by the consumer.  The seven tools are as follows: relations diagram, affinity diagram, systematic (tree) diagram, matrix diagram, matrix data analysis, process decision program chart, and arrow diagram.
Continuous improvement is the idea that improvement in quality is always possible.  Continuous improvement utilizes benchmarking to help organizations continually rejuvenate and strive for top quality in their service or product.  Continuous improvement does this by taking into consideration the management, production, and marketing of a product.  Continuous improvement uses a process that follows the plan-so-check-act-cycle.  Total quality control is the system developed to implement continuous improvement.  The tools of total quality control include the seven basic tools and the seven new management tools among others.  Total quality control typically progresses through three phases.  Empowerment is learning the methods of total quality control and developing the skill in practicing the methods.
 Many companies continue to demonstrate improvement in achieving high quality and business performance while others abandon their efforts toward TQM programs.  Other needed characteristics are the use of statistical tools, product and service quality in design, performance measures focusing on quality, actions based on facts, and the role of a quality department and quality specialists.

Bibliography
Ciancarelli, Agatha.  “Training Methods Vary Widely.”  Purchasing.  January 14, 1999.
Dean, Edwin B. http://mijuno.larc.nasa.gov/dfc/toc.html
Goal/QPC Research Web Page.  http://www.goalqpc.com/research/
Jackson, Andrea.  “Applying TQM Principles to the Finance Department: the City of Auburn Experience.”  Government Finance Review.  February 1999.
Miller, Clifford.  “The Search for Quality: How a Quest for Improvement Will Motivate Your Staff.”  Supervision.  September 1998.
Shin, Dooyoung, Jon G. Kalinowski, and Gaber Abou El-Enein.  “Critical Implementation Issues in Total Quality Management.”  SAM Advanced Management Journal.  Winter 1998.
Thorne, George.  “TQM Connects All Segments of Marketing.”  Business Marketing.  March 1998.

About the Author
Danica Doudican is from Emporia, Kansas and is currently a senior Accounting major at Emporia State University.  She is currently working at Lyon County State Bank.
Updated 7/26/99