MBA - 601

Total Quality
Management
Module 3:
History of TQM
& Seven Quality Tools

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 THE EVOLUTION OF TOTAL QUALITY
MANAGEMENT (TQM)

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 Walter A. Shewhart the “Grandfather of Quality Control.”

• Statistician at Bell Labs during the 1920s and 1930s.

• Studied randomness and recognized that variability existed
in all manufacturing processes.
• He developed quality control charts that are used to
identify whether the variability in the process is random or
due to an assignable cause, such as:
– poor workers or miscalibrated machinery.
• He stressed that eliminating variability improves quality.
• His work created the foundation for today’s Statistical
Process Control

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 W. Edwards Deming
“Father of Quality Control.”
• A statistics Professor at New York University in the 1940s.
• After World War II, he assisted many Japanese companies
in improving quality. The Japanese regarded him so highly
that in 1951 they established the Deming Prize, an annual
award given to firms that demonstrate outstanding
quality.
• It was almost 30 years later that American businesses
began adopting Deming’s philosophy.
• Deming pointed out that only 15 percent of quality
problems are actually due to worker error. The remaining
85 percent are caused by processes and systems,
including poor management.

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 W. Edwards Deming
“Father of Quality Control.”
• Deming outlined his philosophy on quality in his famous “14
Points.” The principles are founded on the idea that upper
management must develop a commitment to quality and
provide a system to support this commitment that involves all
employees and suppliers.
• Deming Also Developed the famous PDSA Methodology

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 Demining 14 Points of Management
1) Create constancy of purpose toward improvement of product and service, with the
aim to become competitive, to stay in business and to provide jobs.
2) Adopt the new philosophy. We are in a new economic age. Western management
must awaken to the challenge, must learn their responsibilities, and take on
leadership for change.
3) Cease dependence on inspection to achieve quality. Eliminate the need for
massive inspection by building quality into the product in the first place.
4) End the practice of awarding business on the basis of a price tag. Instead, minimize
total cost. Move towards a single supplier for any one item, on a long-term
relationship of loyalty and trust.
5) Improve constantly and forever the system of production and service, to improve
quality and productivity, and thus constantly decrease costs.
6) Institute training on the job.
7) Institute leadership (see Point 12 and Ch. 8 of "Out of the Crisis"). The aim of
supervision should be to help people and machines and gadgets do a better job.
Supervision of management is in need of overhaul, as well as supervision of
production workers.

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 Demining 14 Points of Management
8) Drive out fear, so that everyone may work effectively for the company. (See Ch. 3 of "Out of
the Crisis")
9) Break down barriers between departments. People in research, design, sales, and production
must work as a team, in order to foresee problems of production and usage that may be
encountered with the product or service.
10) Eliminate slogans, exhortations, and targets for the work force asking for zero defects and
new levels of productivity. Such exhortations only create adversarial relationships, as the bulk
of the causes of low quality and low productivity belong to the system and thus lie beyond
the power of the work force.
8) Eliminate work standards (quotas) on the factory floor. Substitute with leadership.
9) Eliminate management by objective. Eliminate management by numbers and numerical goals.
Instead substitute with leadership.
11) Remove barriers that rob the hourly worker of his right to pride of workmanship. The
responsibility of supervisors must be changed from sheer numbers to quality.
12) Remove barriers that rob people in management and in engineering of their right to pride of
workmanship. This means, inter alia, abolishment of the annual or merit rating and
ofmanagement by objectives (See Ch. 3 of "Out of the Crisis").
13) Institute a vigorous program of education and self-improvement.
14) Put everybody in the company to work to accomplish the transformation. The transformation
is everybody's job.

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 Dr. Joseph Juran
• After W. Edwards Deming, Dr. Joseph Juran is considered to have had
the greatest impact on quality management. In 1951, he published his
book Quality Control Handbook.
• In 1954 he went to Japan to work with manufacturers and teach classes
on quality.
• Though his philosophy is similar to Deming’s, there are some
differences:
– Whereas Deming stressed the need for an organizational
“transformation,”
– Juran believes that implementing quality initiatives
should not require such a dramatic change and that
quality management should be embedded in the
organization.

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 Dr. Joseph Juran
• One of Juran’s significant contributions is his focus on the definition of quality
and the cost of quality:
– Juran is credited with defining quality as fitness for use rather than simply
conformance to specifications.
– Juran is also credited with developing the concept of cost of quality, which
allows us to measure quality in dollar terms rather than on the basis of
subjective evaluations.
• Juran is well known for originating the idea of the quality trilogy:
1. quality planning
2. quality control
3. quality improvement.

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 Armand V. Feigenbaum
• Introduced the concept of total quality control. In his 1961 book Total
Quality Control, he outlined his quality principles in 40 steps.
• Feigenbaum took a total system approach to quality.
• He promoted the idea of a Work Environment:
– Where quality developments are integrated throughout the entire organization
– Where management and employees have a total commitment to improve quality
– Where people learn from each other’s successes.
• This philosophy was adapted by the Japanese and termed:
“Company-Wide Quality Control.”

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 Philip B. Crosby
• He developed the phrase “Do it right the first time” and the notion of zero defects,
arguing that no amount of defects should be considered acceptable.
• He hated the idea that a small number of defects is a normal part of the operating
process because systems and workers are imperfect. Instead, he stressed the idea of
prevention.
• In 1979, he promoted his concepts, Crosby wrote a book titled Quality Is Free
• He became famous for coining the phrase “quality is free” and for pointing out the
many costs of quality, which include not only the costs of wasted labor, equipment
time, scrap, rework, and lost sales, but also organizational costs that are hard to
quantify.

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 Kaoru Ishikawa
• Known for the development of quality tools called cause-and-effect diagrams, also called
fishbone or Ishikawa diagrams used for quality problem solving.
• The first quality guru to emphasize the importance of the “internal customer,” the next
person in the production process.
• The first to stress the importance of total company quality control, rather than just
focusing on products and services.
• Dr. Ishikawa believed that everyone in the company needed to be united with a shared
vision and a common goal and quality initiatives should be pursued at every level of the
organization and all employees should be involved.
• Advocate of implementation of quality circles, which are small teams of employees that
volunteer to solve quality problems.

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 Kaoru Ishikawa

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 The seven tools

1) Cause-and-effect diagram (also known as

the "fishbone" or Ishikawa diagram)
2) Check sheet
3) Control chart
4) Histogram
5) Pareto chart
6) Scatter diagram
7) Stratification (alternately, flow
chart or run chart)

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 Cause-and-effect diagram the
"fishbone" or Ishikawa diagram

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 Check Sheet

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 Control chart

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 Histogram

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 Pareto Diagram

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 Scattered Diagram

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 Flow Chart

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 Run Chart

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 Any Question

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