Contents
Preface x
Part One Fundamentals of Total Quality Management 1
1 Introduction 3
2 Historical evolution of Total Quality Management 7
3 Some definitions of quality 11
3.1 Exceptional 12
3.2 Perfection or consistency 12
3.3 Fitness for purpose 13
3.4 Value for money 13
3.5 Transformative 13
3.6 Conclusion 14
4 Philosophy, principles and concepts of TQM 16
4.1 The foundation and the four sides of the TQM pyramid 17
4.2 Focus on the customer and the employee 22
4.3 Focus on facts 26
4.4 Continuous improvements 32
4.5 Everybody’s participation 35
5 Quality management systems and standardization 42
5.1 The concept of system 42
5.2 Quality management systems 43
5.3 Joharry’s new window on standardization and causes of quality failures 45
5.4 Standardization and creativity 53
5.5 ISO 9000 and BS 5750—a stepping stone to TQM? 55
6 The European Quality Award 60
6.1 The background to the European Quality Award 61
6.2 The model 62
6.3 Assessment criteria 64
6.4 Experiences of the European Quality Award 66
Part Two Methods of Total Quality Management 70
7 Tools for the quality journey 72
7.1 The quality story 72
7.2 The seven+ tools for quality control 74
7.3 Check sheets 76
7.4 The Pareto diagram 78
7.5 The cause-and-effect diagram and the connection with the Pareto diagram and stratification 80
7.6 Histograms 85
7.7 Control charts 89
7.8 Scatter diagrams and the connection with the stratification principle 104
7.9 Case example: problem solving in a QC circle using some of the seven tools (Hamanako Denso) 105
7.10 Flow Charts 113
7.11 Relationship between the tools and the PDCA cycle 117
8 Some new management techniques 119
8.1 Matrix data analysis 120
8.2 Affinity analysis 124
8.3 Matrix diagrams 126
8.4 Prioritization matrices and analytical hierarchies 129
8.5 An example 134
9 Measurement of quality: an introduction 138
10 Measurement of customer satisfaction 144
10.1 Introduction 144
10.2 Theoretical considerations 144
10.3 A practical procedure 146
11 Measurement of employee satisfaction 154
11.1 Set up focus with employees to determine relevant topics 154
11.2 Design the questionnaire including questions about both evaluation and importance for each topic 155
11.3 Compile presentation material for all departments andpresent the material to the departments 157
11.4 Carry out the survey 157
11.5 Report at both total and departmental level 157
11.6 Form improvement teams 159
11.7 Hold an employee conference 159
12 Quality checkpoints and quality control points 160
13 Quality measurement in product development 163
13.1 Definition of the quality concept from a measurement point of view 163
13.2 Direct measurement of quality 164
13.3 Indirect measurement of quality 170
14 Quality costing 183
14.1 The concept of TQM and quality costs 183
14.2 A new method to estimate the total quality costs 186
14.3 Advantages and disadvantages of the new method to estimate total quality costs 190
14.4 Quality cost measurement and continuous improvements 192
15 Benchmarking 196
15.1 What is benchmarking? 197
15.2 What can be benchmarked? 200
15.3 How is benchmarking carried through? 203
Part Three Process Management and Improvement 207
16 Leadership, policy deployment and quality motivation 209
16.1 Introduction 209
16.2 The PDCA Leadership Model—a model for policy deployment 209
16.3 Leadership and quality motivation 212
16.4 Conclusion 222
17 Implementation process 224
17.1 Introduction 224
17.2 Four stages of implementation 224
17.3 Plan 224
17.4 Do 227
17.5 Check 228
17.6 Act 232
18 Quality culture and learning 235
18.1 Introduction 235
18.2 The concept of culture 236
18.3 Organizational theory and corporate culture 237
18.4 Corporate culture 237
18.5 Classifying a culture 240
18.6 Corporate and quality culture 242
18.7 Working with quality culture 246
18.8 Quality culture, quality improvement and TQM 249
18.9 Quality learning 253
18.10 Conclusion 257
19 Milliken Denmark A/S case studies: leadership, participation and quality costing 260
19.1 Context, imperatives for change and objectives for quality management 260
19.2 History of quality management 263
19.3 Measurement of quality costs (the results of quality management) 275
19.4 Conclusion 283
20 International Service System A/S case studies: the winning hand 286
20.1 Changing for the future—adhering to our core beliefs: preface by Group Chief Executive Waldemar Schmidt 286
20.2 Context, imperatives for change and objectives for quality management 288
20.3 History of quality management 291
20.4 Some results 311
20.5 Conclusion 315
Appendix A 317
Appendix B 318
Index 320
Preface
The principles of TQM have proven very valuable to individuals, groups of people and organizations and many organizations have now discovered a relationship between quality and profitability. It has now become important for organizations to develop a quality strategy by adopting the principles of TQM.
In the present changing environment of the business world, it is evident that education will play a vital role in coping with the change process. There is now a real need to incorporate the principles of TQM in any education and there is an even greater need to educate specialists in this field and to propagate new ideas.
The purpose of this textbook is to provide a framework for the development of understanding of some of the basic aspects of Total Quality Management. The aim is to provide students with deeper knowledge of various principles and core concepts of Total Quality Management. It will also help them to learn and appreciate the role of measurement, quality strategy and quality systems, etc. in the development of the Total Quality Management process.
This book will also provide the readers with a basic knowledge and understanding of various aspects of the effective organizational process and quality improvement plans for the development of the required change in the process of management. We believe that with the help of this book students will be able to use the process specification and analysis tools to create process-oriented organizations. They will also be able to understand the need to change the management process and required motivation to create a quality organization.
Finally this book is designed to help students towards an understanding of the problemsolving process and the tools to overcome the difficulties created by process development. It will also give them the know-how of various statistical methods which can be applied to the control and improvement of processes.
This book is divided into three parts but interlinked to each other in order to provide an integrated approach. The three parts of the book, i.e. Fundamentals of TQM, Methods of TQM and Process Management and Improvement, are linked together in a tree diagram to provide an overall understanding of the subject.