a al-saket (tqm dissertation)

8/20/2019 A Al-Saket (TQM Dissertation)

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A Case Study of Total Quality Management in a

Manufacturing and Construction Firm

by

Ammar Al-Saket

dissertation submitted in partial fulfilment of the requirements for the degree

Magister Ingeneriae

in

Engineering Management

in the

FACULTY OF ENGINEERING

at the

RAND AFRIKAANS UNIVERSITY

SUPERVISOR: PROF. LEON PRETORIUS

CO-SUPERVISOR: PROF. JHC PRETORIUS

January 2003

Johannesburg


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TABLE OF CONTENTS

CHAPTER 1

INTRODUCTION AND PROBLEM STATEMENT

1.1 Prologue … … … … … … … … … 11.2 Total Quality Management … … … … … … 2

1.3 Problem Statement and Research Objectives … … … … 4

1.4 The Research Approach … … … … … … … 4

1.5 The Organisation of the Dissertation… … … … … … 4

CHAPTER 2

THE CONCEPT OF TQM

2.1 History and Evolution of TQM … … … … … … 6

2.2 The Meaning of Quality … … … … … … … 102.3 TQM Principles … … … … … … … … 17

2.4 TQM System Approach … … … … … … … 21

2.5 Quality Standards … … … … … … … … 30

2.6 Conclusion … … … … … … … 33

CHAPTER 3

QUALITY CONTROL

3.1 The Meaning of Quality Control … … … … … … 35

3.2 Quality Control and Quality Assurance … … … … … 40

3.3 Quality Control System Approach… … … … … … 413.4 Process Control … … … … … … … … 45

3.5 Quality Control Tools … … … … … … … 51

3.6 Conclusion … … … … … … … … 59

CHAPTER 4

CASE STUDY OF PROCESS CONTROL

4.1 Introduction … … … … … … … … … 604.2 ABC Steel’s Process Control Approach … … … … … 614.3 Areas for Improvement in the ABC Steel’s Process Control Approach … 65

4.4 Recommendations to Improve ABC Steel Process Control … … 714.5 Conclusion … .. … … … … … … 75

CHAPTER 5

CONCLUSION AND RECOMMENDATION 5.1 Conclusion … … … … … … … … 77

5.2 Recommendations for Future Research … … … … … 79

BIBLIOGRAPHY … … … … … … … … 80

APPENDICES … … … … … … … … 83


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ABSTRACT

Total Quality Management (TQM) is a managerial approach that views quality to be a

result of integrating all organisational activities e.g. engineering, manufacturing,

marketing and administration work. It aims broadly at maintaining and improving quality

standards and to achieve customer satisfaction. TQM’s major components are quality

planning, quality control and quality improvement.

Quality control is responsible for transforming quality planning and quality improvement

outcomes into daily routine work. However, quality control can be implemented by

systematically going around the Plan, Do, Check, Act (PDCA) control cycle, with whichorganisation may achieve continuous small steps of improvement.

An entire enterprise can be better controlled when it is regarded as a set of processes.

Process is controlled by the same systematic way of implementing PDCA cycle. Some

tools are suggested in this dissertation to control processes. These are statistical process

control (SPC), root cause analysis (RCA) and the Feedback Loop.

Beyond information gleaned from literature on quality control a case study of a steel

manufacturing and construction firm is also presented. Some areas for improvement in

the quality arena of this firm are identified based on the results of quality management

gained from literature.


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ACRONYMS

AQL = Acceptable Quality Level

CWQC = Company-Wide Quality Control

ISO = International Organisation for Standards

MBNQP = Malcolm Baldridge National Quality Programme

NCR = Non-Conformance Report

OHSAS = Occupation Health and Safety Management Standards

PDCA = Plan –

Do –

Check –

Act

PPM = Part Per Million

QA = Quality Assurance

QC = Quality Control

RCA = Root Cause Analysis

SA = Situation Appraisal

SAEF = South African Excellence Foundation

SPC = Statistical Process Control

SQC = Statistical/Strategic Quality Control

TAT = Turn-around-time

TQC = Total Quality Control

TQM = Total Quality Management

ZD = Zero Defect


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LIST OF TABLES

Table 1.1: The Six Steps of PDCA Cycle … … … … … 3

Table 2.1: Examples for Categories of Quality … … … … 11

Table 2.2: Quality Definition and Quality Factors … … … … 14

Table 2.3: Definitions of TQM … … … … … … 23

Table 3.1: Control Cycle … … … … … … … 36

Table 3.2: Elementary Statistical Methods … … … … … 52


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LIST OF DIAGRAMS

Fig. 2.1: Evolution and Development of Quality Control … … … 7

Fig 2.2: A Comprehensive Approach to Quality … … … … 17

Fig.2.3: Road-Map for Generalised Quality Planning Process … … 24

Fig. 2.4: PDCA Control Cycle … … … … … … 25

Fig. 2.5: Kaizen and Kairyo Improvements … … … … … 27

Fig. 2.6: An Integrated TQM Model … … … … … … 29

Fig. 3.1: Interrelationship of the Three Major Quality Management Activities 38

Fig. 3.2: Stages of Major Management Activities … … … … 39

Fig. 3.3: Quality Control Cycles in Management Activities … … … 40

Fig. 3.4: Company-wide Quality Control … … … … … 41

Fig. 3.5: Aspects to be Controlled … … … … … … 43

Fig. 3.6: Repeated Application of the PDCA Control Cycle … … … 44

Fig. 3.7: Baldridge’s Steps toward a Mature Process Approach … … 47

Fig. 3.8: Process Context … … … … … … … 48

Fig. 3.9: Data Collection (Check) Sheet for Measurable Quantities … … 53

Fig. 3.10: An Example of a Histogram … … … … … 53

Fig. 3.11: The Pareto Diagram … … … … … … … 54

Fig. 3.12: Cause and Effect Diagram … … … … … … 55

Fig. 3.13: Using Histograms to Direct Quality Control Activities … … 56

Fig. 3.14: Scatter Diagram … … … … … … … 57

Fig. 3.15: A Typical Control Chart … … … … … … 57

Fig. 3.16: Feedback Loop … … … … … … … 58

Fig. 4.1: Integrated Management System Flowchart … … … … 61

Fig. 4.2: QA/QC Progress Flowchart … … … … … … 61

Fig. 4.3: Non-Conformance / Corrective Action (NCR) Report … … 66

Fig. 4.4: Weld Reject Rates in Percentages for 2002 … … … … 68

Fig. 4.5: General Flowchart Depicting the Sequence of Work Instruction

Processes of ABC Steel … … … … … … 69

Fig. 4.6: Work Instruction – Inspection of Painted Steel … … … 69

Fig 4.7: Monthly Rework Costs (Rands) for September and October 2002 … 70


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ACKNOWLEDGEMENTS

The idea of writing on the subject of Total Quality Management started from an indirect

suggestion when Prof. L Pretorius proposed to a group of students a number of topics one

of which is now the title of this dissertation which he encouraged me to write.

Several people have made invaluable contributions towards this dissertation. Firstly, I

would like to thank Prof. L Pretorius for the leadership, hints and insightful notes he has

provided which have gone a long way in shaping the dissertation in the manner it is. My

thanks and appreciation also goes to Prof. JH Pretorius for the invaluable comments and

suggestions he offered.

The quality manager for ABC Steel Engineering Company (the case study) facilitated this

research to give it a practical flavour by investing his time, support and full access to the

company’s literature for which I am very grateful.


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DECLARATION

I hereby declare that all the research work, except wherever it has been appropriately

acknowledged by relevant references, is my own work.


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DEDICATION

To my wife Leenah who strove to ensure a suitable environment for me to write this

research. Thank you Leenah for your prayer and support.


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1

CHAPTER 1 Introduction and

Problem Statement

1.1 Prologue

t Ford Motor Company, in 1974, Paul Hartman reported that more than 80 percent

of the automobiles had to go to a rework facility immediately after the assembly

line (Jablonski, 1994:11). Deming (1994:22) mentions that 23 percent of the cost

of running a hospital in the US goes towards administration against a comparable 5 percent in

other places. These two and many other examples urge questions like: how are we doing our

business? What is the right approach of doing business? And how can we achieve a quality

product?

Deming is well-known in his contribution to the Japanese quality movement. He reports

(1994:57) that in 1950, he was invited to deliver lectures about quality management in Japan.

Japan, he claims, has been turned around through his presentations to top management and

engineers on ‗system of production‘. They had great knowledge but what has ignited Japan is

the change in the managerial approach, which has resulted in the production of quality

products.

The word quality is rather an attractive term for both organisations and customers. It became

like a slogan that forms new international business trends at all levels.

Many organisations claim having a quality programme in some way or another. On the other

hand, libraries and electronic information retrieval systems are flooded with literature on the

subject. The above-mentioned observations may be due to the following reasons:

A


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Today‘s business environment, which is characterised by rapid advances in technology,

global competition and rising customer expectations. (Wolking, 1996:1)

The term ‗quality‘ itself maybe subjective i.e. having different meanings to different people under varying circumstances (Ceronio, 1996:15), which implies having different

approaches in order to achieve quality.

Today‘s business environment and the nature of the term quality itself imply that the quality

concept is an ever-changing one, hence, continuous attention must be paid in order to catch

up with the ever-changing quality standards to control moving targets in an internationally

competitive market. (Feigenbaum, 1983:7)

1.2 Total Quality Management

Total Quality Management is a managerial approach aiming at achieving quality in a broad

sense. Today‘s environment urges Total Quality Management (TQM) to be a managerial

approach and style so as to achieve customer satisfaction and global competitiveness. TQM is

based on the following principles: quality integration, quality first, customer satisfaction,

continuous improvement, prevention rather than inspection, factual-based decision and

workforce involvement.

Quality management aims at conducting the inherent managerial elements of planning,

control and improvement (Juran, 1992:14) based on the total quality principles. The expected

results of TQM are better organisation performance, increased productivity, more effective

and efficient processes and more competitive products. However, the ultimate results of

implementing TQM are achieving customer satisfaction and global competitiveness. For

these outcomes to be achieved, management is required to invest in a quality programme by

training people, establishing new infrastructure, delegating managerial duties to others and

the implementation of quality concepts broadly, throughout the organisation, whereas

planning, process and products are included as well as suppliers, employees and customers

are considered in the whole quality programme. In the current research the focus is on TQM

principles in broad terms and quality control in particular.


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Quality Control

Quality control is a managerial activity of evaluating and implementing the outcomes of

quality planning and quality improvement programmes. Several approaches may be followed

to conduct quality control. Juran (1989:145) suggests a three-step approach to quality control

namely: evaluating actual performance; comparing actual performance to goal, and taking

action on the difference.

To evaluate the performance, information is needed and all stakeholders should participate in

getting the information. Customers too can efficiently give information regarding

product/service performance. However the workforce often gives information that adequately

reflects operation process quality. Management can measure the performance relevant to their

level as well.

Another approach to quality control is known as the Plan, Do, Check, Act Cycle. This

approach considers planning for quality control as part of quality control stage. Ishikawa

(1985:59) breaks down PDCA cycle into six steps presented in Table 1.1.

1 Determination of Goals and Targets

2 Determining Methods of reaching Goals

3 Engaging in Education and Training

4 Implementing Work

5 Checking the Effects of Implementation

6 Taking Appropriate Action

Table 1.1: The Six Steps of PDCA Cycle (Ishikawa, 1985:59)


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For the manufacturing field, Zairi (1991:37) advocates concepts that are mainly statistically-

based techniques for achieving, maintaining and improving on quality control of products and

services. These concepts are based on typically the following stages:

Measuring with manufacturing,

Recording of measurement.

Analysing the records,

using the analysis for feedback and corrective action.

In summary, the concept of control includes all activities and arrangements which empower

the organisation to be able to achieve their objectives effectively and economically.

1.3 Problem Statement and Research Objectives

This research aims at presenting aspects of TQM and generally how it can be integrated into

the organisation. Other matters related to quality such as quality standards will be briefly

presented as well. More attention will be given to quality control, its essence, where it fits in

within the whole TQM framework and what its mechanisms are. A case study of ABC Steel

Engineering Company (ABC Steel) is employed to present and examine practicalities of a

managerial process control system. Suggestions and broadly formulated recommendations on

how to improve the process control are also given.

1.4 The Research Approach

The nature of the study is a descriptive one. Therefore, an exploration is done in order to

describe the concepts and mechanism of TQM and quality control. More attention is given to

identifying the meanings of concepts under discussion, and that, in turn, forms a well-defined

basis for evaluation of other related aspects afterwards. This implies that the research work is

mainly based on widely accepted pioneering TQM ideas and established quality standards. A

discussion on the process control system of the case study based on ABC Steel‘s managerial

approach based on the firm‘s literature is presented. A case study on process control is

examined against the theoretical outcomes of quality process control.

1.5 The Organisation of the Dissertation

This chapter has highlighted some concepts of TQM as well as the objectives and approach

of this research. The rest of the research is organised in the following manner: Chapter 2


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discusses TQM, its principles and system approach. In addition, it traces the historical

development of the quality concept as well as quality standards.

Chapter 3 expands on the concept of quality control and where it fits in the TQM framework.

A more detailed discussion is presented on examination of the process as an essential part of

quality control covering issues such as the nature of the process, characteristics of and how

the process is controlled. Some tools used in quality control are briefly presented before

concluding the chapter.

Chapter 4 presents the ABC Steel‘s managerial process control case study by evaluating it

using the tools and framework presented in Chapter 3. Recommendations for improving the

company‘s control process are accordingly given.

The research concludes in chapter five with a summary and recommendations on the work

presented in chapters preceding it.


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CHAPTER 2 The Concept of

TQM

2.1 History and Evolution of TQM

uality control as it is known today did not exist in the eighteenth and nineteenth

century. However some quality control activities would be performed informally by

individuals at workshop level (Garvin, 1988:3). The development and evolution of

Quality Control started during and spanned the entire twentieth century (Feigenbaum,

1983:15). In 1913, JC Penney became one of the earliest people who presented the

fundamentals of Total Quality Management philosophy when he suggested concepts such as

―customer satisfaction‖, ―fairness‖, ―quality‖, ―value‖, ―associate training‖, and ―rewards for

performance‖ to be managerial bases for the business (Jablonski, 1994:29-30). Furthermore,

Fredrick W. Taylor who is known as the ‗father of scientific management‘ presented other

quality concepts in the early 1900s as well (Garvin, 1988:5).

Anyone tracing the development of TQM throughout the twentieth century, may easily notice

the gap between TQM development as a theory in literature as opposed to TQM development

in practice and implementation particularly in the USA notwithstanding that is where it

originated (Kinlaw, 1992:viii). For example, it took more than fifty years for Walter A.

Shewhart‘s (a physicist with Bell Telephone Laboratories, the birth place of the American

quality), teachings in the book ‗The Economic Control of Quality of Manufactured Product

published in 1931 to be recognised and implemented in the USA (Kinlaw, 1992:vii). Nevertheless, the development of the approach to quality control in the USA went through

Q


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four broad stages: operator quality control, inspection quality control, statistical quality

control and total quality control (see Fig. 2.1 adapted from Feigenbaum, (1983:16) below).

Evolution and

Development

TQMUSA

Quality Assurance

USA

TQMJapan

Statistical

QC

Inspection

QC

Operator

QC

1900 1920 1940 1960 1980 Years

Fig. 2.1: Evoluti on and Development of Quali ty Control[Feigenbaum, (1983:16), Adapted]

2.1.1 Operator Quali ty Control

Up to 1900 when goods were produced in small volumes, quality control activities were

performed by artisans and skilled craftsmen (Garvin, 1988:3). That period of time in the

quality control movement is termed the Operator Quality Control Era (Feigenbaum,

1983:15). Some features of this era were that quality control was performed mainly in the

product-manufacturing field and was not a responsibility assigned to an independent person.

However, the operator performed quality control as part of his job.

When one goes back, however, to the early 1800s, a breakthrough in this field may be

acknowledged when a rational gauging system was put in place. Under the set up, a model of

a product is kept from use as it serves as a standard for measuring the degree of conformity of

subsequent output (Garvin, 1988:4). Another innovative idea in the field of quality was the

1819 proposal of introducing the inspection concept to control product quality, though not

formally adopted and recognised immediately.


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2.1.2 I nspection Qual ity Control

Inspection quality control may be the first directly linked concept to TQM that ever was

formally introduced. In the early 1900s Fredrick W Taylor gave this concept more acceptance

by singling it out as a task for bosses to manage their businesses effectively (Garvin, 1988:5).

Enhancing Taylor‘s idea in 1922, G.S. Radford published the book ‘The Control of Quality in

Manufacturing’ in which he clearly stated the direct link between inspection activity and

quality control. All these efforts have pushed inspection concept to become formally linked to

quality control and to be part of management where as it is performed on an independent

basis, to the extent that by 1924, for example, a department for inspection engineering was

established at Western Electric (Garvin, 1988:6). However, products during this stage was

not yet produced in huge volumes, therefore, 100% inspection i.e. ‗inspection f or all units of

production was conceivable (Feigenbaum, 1983:16).

2.1.3 Statistical Qual i ty Contr ol

A statistical theory was originated over 80 years ago by Sir Ronald Fisher. (Jablonski,

1994:29). Shewhard pioneered a breakthrough of statistical quality control (SQC) through his

publication in 1931 based on statistical principles (Garvin, 1988:6). He realised in a single

volume that in any work process there would be natural variation such that limits should be

specified to distinguish acceptable product fluctuating within these two limits (Kinlaw,

1992:vii). Then, Shewhard was working within a team at Bell Telephone Laboratories at

Western Electric, where they had a programme for nationwide telephone network

standardisation and uniformity, the challenge they faced was how to extract big amounts of

information regarding units‘ quality from a section of inspection data. Consequently, some

statistical techniques such as sampling, control charts and using prediction and probability

rules were adopted and developed (Garvin, 1988:8).

Another challenge that prompted the use of SQC was the mass production that was required

for World War II (Feigenbaum, 1983:15) when the ordnance department of the USA Army

faced a problem of getting large quantities of arms from different suppliers at an acceptable

level of quality (Garvin, 1988:9). Another contributor to this field was E.W. Deming. He

added to Shewhard‘s work and developed his own version of SQC. All in all, by the late

1940s, inspection that was based on statistical techniques had become the primary method of

control quality (Garvin, 1988:12)


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2.1.4 Total Qual ity Control

The concept of TQC grew rather slowly in the USA (Kinlaw, 1992:vii) although many TQC

aspects were developed in the USA in the 1950s. Quality was implemented in the American

and European industries only in the 1980s (Kinlaw, 1992:viii). The reason for this according

to Feigenbaum‘s opinion was that prior to that, there was no ‗willingness or the ability of

business and governmental organisations to take adequate steps concerning the findings of

technical and statistical work‘ (Feigenbaum, 1983:16). He continues by saying that ‗the

quality problem could not be handled by existing decision making structures.‘ In other words,

quality control still was seen as a duty for inspection group or statistical quality control

coordinator at the shop-floor level. However, this level of the decision-making structures

could not comprehend the quality problem broadly and this excluded the involvement of the

management system and the administration work in the quality problem.

On the other hand, Japanese quality before the 1940s was limited to inspection quality. Even

the SQC approach was limited to a small group of experts (Garvin, 1988:179). However, the

post-war era saw dramatic progress in the Japanese quality, and that happened over a

relatively very short period of time. (Kinlaw, 1992:vii). In fact, quality control was

introduced to Japanese by some American experts (Garvin, 1988:180)

The most well known expert who contributed to Japanese quality is W. Edward Deming

(Garvin, 1988:180). He was invited to Japan in 1950 to deliver a series of lectures on SQC

(and the system of production) to the leaders of Japan industry (Deming, 1994:57). Other

experts such as Joseph M. Juran followed Deming‘s footsteps in 1954 and presented seminars

on the system of total quality management in organisations (Garvin, 1988:182-3). Their

contributions influenced the Japanese dramatically (Deming, 1994:57). Basically, the 1950s

became a watershed era in the Japanese transformation from ‗copier‘ to quality leaders.

(Jablonski, 1994:29).

The Japanese realised the special need for an own approach to quality. In this regard, they

initiated an effort in 1956. In 1962 the Japanese had innovated the concept of quality control

circle. (Ishikawa, 1984:6) By 1968 they had developed their own version of TQM, and

presented it as Company Wide Quality Control (CWQC) (Ishikawa, 1985:45) and the most

prime aspects of TQM were perfected in Japan between 1950-1965 (Galgano, 1994:xiii)


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Quality control progress in the USA took a different route and initially less momentum than

the Japanese one. The 1950s had seen invaluable theoretical contribution. For instance, the

publication ‘Quality Control Handbook’ by J.M Juran in 1951, tackled the economics of

quality (Garvin, 1988:12). In addition, during 1956 A.V Feigenbaum proposed a

comprehensive approach to quality in his publication ‘Total Quality Control’

(Garvin,1988:13)

On the quality concepts implementation side, in 1961-62 Martin Company took a new step by

adopting a programme called ―Zero Defect‖ (ZD) rather than the concept of ―Acceptable

Quality Levels‖ (AQL) that had been proposed by the war department in the 1942. The

program ZD was based on quality principles such as: workers motivation and training, as

well as the idea of being the ZD becoming an achievable objective. (Garvin, 1988:17) In fact,

some authors termed the period of the two decades of 1950s and 1960s of quality control

movement as Quality Assurance (Garvin, 1988:18).

In the early 1980s, the Americans felt the gap between quality of their products and the

Japanese ones (Jablonski, 1994:12). They realised that quality is a crucial factor for business

success in the modern international business environment (Feigenbaum, 1983:17).

Subsequently, the TQM approach begun to be adopted in the 1980s, as part of managerial

strategies in the USA and European industries as well as in the service sector and government

(Galgano, 1994:xiv). In the late 1980s major aspects of TQM had been integrated (Jablonski,

1994:12). A later dimension added to TQM related to emerging environmental and health

issues. Today, it is noticeable that most leading companies have adopted TQM programme

(Galgano, 1994:xiv).

2.2 The Meaning of Quality

The dictionary gives a long list of the meanings of the word ‗quality‘ many of which are

subjective. (Peach, 1997:36) However, some of the meanings of quality as applied in the field

of management in general and manufacturing in particular are examined in this section.

David A Garvin (1988) discusses the term quality where he dedicates three chapters of his

book in an attempt to offer a comprehensive meaning for quality. He begins the third chapter

of his book with a conceptualisation of the term ‗quality‘ by raising questions of whether

quality can be a subjective term or an objective one; absolute or relative; and what its


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relationship with variables such as price, cost, productivity and market share is. He then

categorises most of the definitions into five principal groups namely: the transcendent,

product-based, user-based, manufacturing-based and value-based. (Garvin, 1988:39-40)

Table 2.1 presents some examples for each one of the mentioned categories.

Group Examples of Definitions

I . Tr anscendent "Quality is neither mind nor matter, but a third entity independent of

the two ... even though Quality cannot be defined, you know what it is.

" (Robert M. Pirsig, Zen and the Art of Motorcycle Maintenance [New

York: Bantam Books, 1974], pp. 185, 213)

" . . . a condition of excellence implying fine quality as distinct

from poor quality.... Quality is achieving or reaching for the highest

standard as against being satisfied with the sloppy or fraudulent."(Barbara W. Tuchman, "The Decline of Quality," New York Times

Magazine, November 2, 1980, p. 38)

I I . Product-based "Differences in quality amount to differences in the quantity of some

desired ingredient or attribute." (Lawrence Abbott, Quality and

Competition [New York: Columbia University Press, 1955, pp. 126-27)

"Quality refers to the amounts of the unpriced attributes contained in

each unit of the priced attribute." (Keith B. Leffier, "Ambiguous

Changes in Product Quality," American Economic Review, December

1982, p. 956)

I I I . User-based "Quality consists of the capacity to satisfy wants . (Corwin D. Edwards,

"The Meaning of Quality," Quality Progress, October 1968, p. 37)

"In the final analysis of the marketplace, the quality of a product

depends on how well it fits patterns of consumer preferences." (AlfredA. Kuelm and Ralph L. Day, "Strategy of Product Quality, "Harvard

Business Review, November-December 1962, p. 101) "Quality is fitness for use. (J. M. Juran, ed., Quality Control Handbook,

Third Edition [New York: McGraw-Hill, 1974, p. 22)

I V. M anufacturing-based "Quality [means] conformance to requirements. " (Philip B. Crosby,

Quality Is Free [New York: New American Library, 1979], p. 15)

"Quality is the degree to which a specific product conforms to a designor specification." (Harold L. Gilmore, "Product Conformance Cost,"

Quality Progress, June 1974, p. 16)

V. Value-based "Quality is the degree of excellence at an acceptable price and the

control of variability at an acceptable cost." (Robert A. Broh, Managing

Quality for Higher Profits [New York. McGraw-Hill, 1982], p. 3)

"Quality means best for certain customer conditions. These conditionsare (a) the actual use and (b) the selling price of the product." (Armand

V. Feigenbaum, Total Quality Control [New York: McGraw-Hill,1961], p.1)

Table 2.1: Examples for Categories of Quali ty(Garvin, 1988:40)

For more convenience, out of these five approaches for defining quality, an elaboration will

be made on two of them, namely: manufacturing-based and user-based definitions.


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2.2.1 Manufactur ing-Based Defi ni tions of Qual ity

Manufacturing-based definitions of quality look at quality from a manufacturing viewpoint,

where pre-determined requirements, design activities and manufacturing practices are the

bases of quality pr oduct and accordingly, the quality definition will be ‗conformance to

requirement‘ (Crosby, 1990:40)

Crosby argues that this definition offers practical meaning for quality. In addition, it

considers that zero-defect product is the only acceptable quality level since 100 percent

conformance to requirements is the only acceptable quality measure. However, it is

management‘s prime responsibility to create the right requirements in order to meet customer

real needs. (Crosby, 1990:40-1)

On the other, hand Jur an (1992:11) finds the definition of quality to be ―conformance to

specifications‖ or ―conformance to standards‖. This is a problematic definition when applied

at managerial levels as a product is meant to meet customer needs while a conformance to

specifications is just one of many means for achieving that objective on the part of the

manufacturer. Furthermore, standards and specifications are static while ‗quality is a moving

target.‘ Lawton (1993:80) supports Juran‘s observation by mentioning that requir ements are

often specified by the producer who ‗may have only a partial relationship to customer

desires.‘

Gavin (1988:45) realises this criticism when he says that the definition ‗conformance to

specifications‘ considers that the product, which is of customer‘s interest and deviates from

specifications is likely to be described as poor quality product, as such, this would be a

serious problem in that definition of quality.

All in all, as ISO 9000-1 notes that specification, in itself might not guarantee that a

customer‘s requirements are met (Peach, 1997:37)

2.2.2 User-Based Defini tions of Qual ity

User-based definitions of quality view quality from the customer side. The quality of the

product is determined by the user or by the customer (Feigenbaum, 1983:7). Hence, the

product which is regarded as having the highest quality is the one, which best satisfies

customer‘s preferences (Garvin, 1988:43). A popular definition underlying this approach is


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the one by Juran (1989:1) where he defines quality as ‗fitness for use.‘ He then identifies two

dimensions of quality namely: product features that meet customer needs and freedom from

deficiencies. However, Garvin points out basic problems with the user-based approach is that

it equates quality with maximum customer satisfaction: though related, they are not identical.

In addition, in order to achieve satisfaction from wide range of customers, it would be

practically difficult to comprehend varying individual preferences and to transform those into

a ‗meaningful definition of quality at the market level.‘ Besides, by considering quality to be

exclusively customer determined, the product‘s impact on the environment, health, safety and

social concerns are not explicitly addressed. In the case where these concerns are considered,

it would be at individual level only.

2.2.3 Comprehensive Approach for a Defin iti on of Quali ty

Juran (1992:9) reports that to date, there is no consensus on the adoption of a simple

comprehensive phrase to describe quality. Garvin (1988:46-7) goes further in pointing out the

potential conflict that exists between members of marketing, engineering and manufacturing

departments within an organisation due to them holding different views of what constitutes

quality. Marketers tend to see quality from the customers viewpoint; hence, their concern is

what happens to the product outside the factory. Engineers in general, focus mainly on

specifications and how to translate product performance into precise measurements while

manufacturing departments would look at the meaning of quality from a different standpoint

altogether. They would tend to prefer the practical meaning of quality i.e. ‗conformance to

specifications‘ and doing things right the first time while reducing waste.

These three approaches are not unified. Therefore, a serious problem in communication may

exist within an organisation. However, an organisation can take advantage of these dissimilar

perspectives of quality in order to enhance its position, as this would be an adoption of a

comprehensive meaning of quality rather than the pursuit of satisfying a particular definition

of quality. In supporting Garvin‘s findings, Galgano (1994:3) states that ‗quality becomes a

comprehensive and unifying concept.‘ He goes further by relating the internal structure of the

organisation to the quality concept itself. Moreover, he considers quality to be a changing

concept — increasing constantly over time.


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Most of the definitions that are based on the comprehensive approach for quality consider

that there are several dimensions for quality. However, it must be customer-oriented. In

addition, each definition specifies a set of factors and conditions that correlate with quality.

Table 2.2 presents several selected definitions of quality that are based on the comprehensive

approach. It also gives a set of quality factors correlating with each one of the definitions.

Quality Definition Quality FactorsThe total composite product and service

characteristics of marketing, engineering,

manufacturing and maintenance through

which the product and service in use will

meet the expectations of customer

(Feigenbaum, 1983:7)

1. The actual use

2. The selling price3. The specification of dimensions and operating

characteristics

4. The life and reliability objectives

5. The safety requirements

6.

The relevant standards7. The engineering, manufacturing, and quality costs

8. The production conditions under which the article

is manufactured

9. The field installation and maintenance and service

objectives

10. The energy-utilization and material conservationfactors

11. The environmental and other "side" effects

considerations

12. The costs of customer operation and use and

product service (Feigenbaum, 1983:9)

According to ISO 8404 (1994), quality is“the totality of characteristics of an entity

that bear on its ability to satisfy stated and

implied needs.” (Peach, 1997:36)

Clause 4.5 of ISO 9000-1 looks at the following fourfacets:

Quality due to the definition of needs for the

product

Quality due to product design

Quality due to conformance to product design

Quality due to product support (Peach, 1997:36)

Japanese Industrial Standard JIS Z8101

(1981) defines quality as a totality of the

characteristics or performance that can be

used to determine whether or not a product

or service fulfils its intended applications.

(Ozeki and Asaka, 1990:4)

The effect of the product or service on society

Quality characteristics which maybe unique for

each product or service. (Ozeki and Asaka, 1990:4)

Quality becomes both a reference point anda goal for all activities undertaken within a

company. Quality embraces and unifies

every element contributing to excellence

(Galgano, 1994:4)

Competitiveness, delivery cost, moral, productivity, profit, product quality, or volume performance, service,

safety, concern for the environment, the stockholders‘

interest.

The eight dimensions of quality together,

cover a broad range of concepts. Several of

the dimensions involve measurable product

attributes; others reflect individual

preferences. Some are objective and

timeless other shift with changing fashions.

Some are inherent characteristics of goods

while others are ascribed characteristics.

(Garvin, 1988:60)

Performance, features, reliability, conformance,

durability, serviceability, aesthetics, perceived quality.

(Garvin, 1988:45-50)

Table 2.2: Quality Definiti on and Quality Factors


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By looking at quality definitions and factors in Table 2.2, it may be useful to categorise them

into broader quality dimensions.

2.2.4 Qual ity Dimensions

The comprehensive approach sets the quality concept as a base and a goal for all operational

and organisational activities undertaken. (Galgano, 1994:4) Therefore, quality should be a

multi-dimensional concept with keeping customer satisfaction as the focal point.

Nevertheless, the main quality dimensions are briefly presented below:

Operational Dimension: Operational dimension of quality deals, mainly, with

engineering, manufacturing and quality of outputs such as: specifications, conformance,

product features, delivery service and product quality.

Reliability Dimension: Reliability dimension may include durability, serviceability,

maintainability.

Economical Dimension: Economical dimension of quality is concerned with balancing

between quality value and quality cost for each quality characteristic (Juran, Sedar and

Gryna, 1962:10). Factors such as cost, productivity, profit and competitiveness fall into

this dimension.

Organisational Dimension: The organisational dimension deals mainly with quality of

organisational structure and performance.

Social and Environmental Dimensions: Social and environmental dimensions are

quality characteristics regarding these dimensions within and outside the organisation

such as moral, safety, internal customers‘ interest, waste, pollution and so on.

While considering the meaning of quality to be customer satisfaction-oriented, the following

notes should be taken into account:

Both the internal and external customers should be satisfied and the stockholders‘

interest should be recognised.

When specifying customer needs, those needs may be expressly stated by customer or

implied (latent) needs that a customer expects to be fulfilled (Peach, 1997:36).


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Quality activity may constitute one of two broad efforts. Firstly, it may involve the

elimination of negative features of quality such as non-conformance to requirements.

This is sometimes called negative quality or reactive quality because the organisation

responds to a negative situation. The aim of reactive quality is to reduce customer

dissatisfaction. The other category of quality activities basically aims at increasing

customer satisfaction by as an example, improving a product or service. This kind of

quality is also termed positive quality (Galgano, 1994:6-7)

Quality is customer-oriented. However, other quality factors are essentials to the quality

concept as well. Each product might have its own array of quality factors (Ozeki and

Asaka, 1990:4). What is fundamental is the right combination of factors in a balanced

manner in order to achieve customer satisfaction as well as producing a quality product.

(Galgano, 1994:5)

All in all, quality in the management field has been broadened to cover other meanings of

product quality. Basically, it embodies all aspects of excellence that ensure the production of

a quality product and achieving customer satisfaction. Furthermore, quality aspects may be

grouped into three broader fields (see Fig. 2.2 below) namely, quality of output, quality to

satisfy customer and organisational and operational quality.

Quality output looks at process output and results measured against pre-specified

quality characteristics, requirements and standards.

Quality to satisfy internal and external customers and, lastly,

Organisational operational quality, which mainly is concerned with an organisational

structure and culture as well as conducting managerial functions that achieve quality.

Included under this field are engineering, manufacturing, marketing and administration

activities.


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Quality

Quality of

OrganisationalStructures and

Operations

Quality to

Satisfy

Customer

Quality

Output

Organisational Structure

and Culture.Managerial Activities.

Organisational

Performance.

Engineering,

Manufacturing, Marketing

and Administration.

External Customer

Internal

Customer

Impact on

Environment or

Society

Process

Output

Quality

Product Quality

Explicit Needs

Implicit Needs

Interests of all

Stockholders

Work Environment

ProductQuality.

Delivery.

Cost.

Service.

Fig 2.2: A Comprehensive Approach to Qual ity

2.3 TQM Principles

Before going further in describing TQM, it is important to discuss the philosophical

principles of TQM. TQM is a managerial methodology. Therefore, it is a framework of

principles as well as a systems approach. It is a philosophy trying to analyse what factors

influence business quality, as well as tools with which quality can be controlled and assured.

There are different approaches that can be adopted to achieve quality, but all these

approaches lie under one methodology. The following concepts form part of the principles of

TQM and its philosophy:

a)

Quality Integration

Organisation starts its business by identifying customer needs, passes through design

to manufacturing then inspection. The last step will be marketing and selling. This is

the traditional way of doing business. At the end of the day, management wishes to

present a quality product and to enhance its competitive position. Questions that arise

about this sequence are: how can management assure quality and where does quality

fit in the sequence.


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TQM philosophy is that quality cannot be achieved only by applying inspection at the

end of the process, rather it is a quality of conducting all these processes, and

integrating all interdependent components to accomplish the goal of the whole

organisation. Ishikawa captures the spirit of TQM by saying: ―Quality means quality

of work, quality of service, quality of information, quality of process, quality of

divisions, quality of people including workers, engineers, managers and executives,

quality of system, quality of company, quality of objectives, briefly speaking, it is

Total Quality, or as the Japanese call it, Company-wide Quality‖ (1985:45).

b)

Quality First

Management, continuously, wants organisations to produce good products at low cost,

that is, to be competitive and to increase the market share, or at least, to survive and

maintain the same level of market share. TQM aims at serving this purpose. However,

management, sometimes has the tendency to rather get short-run profit than long-run

holistic organisation advancement. Management that adopts ‗quality-first‘ strategy

will increasingly gain customer confidence. Sales increase gradually as a result and

hence profit ultimately winning on the international market in the long-run (Ishikawa,

1985:104). In fact, Deming (1982:1) puts it clear by making a statement that:

―productivity increases with improvement of quality.‖

c)

Customer Orientation

Customer satisfaction is the top priority for business and basic condition for success.

Basically, there would be no business without the customer (Galgano, 1994:15).

Therefore, quality management considers the customer as a basic value that guides an

organisation‘s activities.

In addition, a customer need should form an essential input for the designing and

production process and influences the decision-making process to the extent that

Kottler (2000:23) turns the organisation chart up-side-down by putting the customer

at the top of the pyramid.

So TQM directs that an or ganisation‘s objectives, structure and managerial process

should be established in such a way that it serves the customer.


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The customer can be outside the organisation or within the organisation. The

customers outside the organisation are the clientele while those within are the

employees. Since an organisation accomplishes a particular job in a network of

interdependencies, an employee who receives an input, naturally, it is an output of the

preceding process. In this case, the employee is a customer of the predecessor

(Jablonski, 1994:44-5). Both inside and outside customers play a major role to the

organisation‘s success. Therefore, Ishikawa (1985:45) proposes that manufacturers

must study the requirements of consumers and to consider their opinions when they

design and develop a product.

d)

Continuous Improvement

Organisations are living in a dynamic environment. Products are designed to satisfy

customer needs, which are ever increasing. Three factors that shape today‘s business

environment, are rising customer expectations; continuous advances in technology

and competition. These force management to adopt a ‗continuous improvement‘

strategy as a normal way of managing a business.

On the other hand, with organisations confronting challenges continuously,

immediately responding to action is a real need. A plan for prevention of these

problems from occurring in the first place is rather important. Moreover, a programme

for upgrading machines, processes and tools as well as inventing new opportunities

and developing products are essentials for achieving competitiveness. Therefore,

continuous improvement must be viewed as a regular part of the organisation‘s

performance. (Kinlow, 1992:13-15)

e)

Prevention rather than Inspection

The traditional way of management is to do inspection at the end of the production

process. This approach, as Ishikawa (1985:77) notes, was abandoned at a relatively

early period in Japan. Some of the criticisms on this approach are listed below:

Inspection is costly. Ishikawa reports that the ratio of inspectors to line workers in

the West is up to an average of 15%.


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Inspection approach does not ensure product and process improvement. On the

contrary, an inspection approach is an implicit suggestion of having a mistake

somewhere in the process, and accordingly, the inspector must pick out defective

products.

The same problem will be continuously committed. By the 1980s, about a third of

the work in the US economy consisted of redoing prior work because products

and processes were not perfect. (Juran, 1989:199)

Deming (1982:22) summarises this idea by saying ‗inspection is too late, ineffective

and costly.‘ The TQM approach is to ‗do it right the first time‘ rather than to react

after the problem happened. Problem prevention can be assured by controlling all

processes, discovering problems, identifying their root causes then improving the

process in order to avoid the problems.

f)

Factual-Based Decisions

Management needs continuously to make decisions. In organisations not based on

quality, decision-making is based on opinion or personal experience of designers,

manufacturing engineers, inspectors, etc. in the absence of data (Juran, 1980:8). Then,

blaming and finger pointing start to shift responsibility for any mistake.

Ishikawa (1985:109) proposes the following steps for conducting factual-based

decision in order to ensure that any analysis has the right basis for decision-making:

Clearly recognising facts, then

Expressing those facts with accurate data, and finally,

Utilising statistical methods to analyse the data

Facts can be properly identified by recognising everyone involved in the process,

within and outside the organisation including: management, supervisors, workforce,

suppliers and customers. All these individuals can contribute to a mutually benefiting

solution. Of particular importance is the fact that their contribution relates to their

field of concern (Jablonski, 1994:48).


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g)

Workforce Involvement

Juran (1989:261) defines workforce as all employees except the managerial hierarchy

and ‗professional‘ specialists. Traditional management tends to ignore workforce

ability of participating in managerial activities. Galgano (1994:68) observes that

workforce involvement is important when he writes ‗human beings have unlimited

resources and immense capabilities.‘ Galgano goes further in putting forward a

condition for organisation‘s ultimate success defined in terms of its management of

human resources.

TQM requires that management must provide the workforce with knowledge and

training, the workforce must understand the organisation‘s objectives and processes as

well as where their role fits in the organisation so that they contribute efficiently in

the improvement of the organisation. Ishikawa (1985:90) explains one of the aspects

of the Japanese approach to TQM as their insistence on having all divisions and

employees involved in promoting quality control in addition to quality control

specialist. Moreover, Juran (1989:261-2) suggests that in order to achieve a quality

workforce contribution, management should:

motivate the workforce to make a contribution

provide them with required training to enable them to make a contribution.

Juran goes on to say that the workforce can contribute in the following managerial

aspects:

Quality Control: This comes first because controlling is the dominant form of

quality related responsibility assigned to the workforce.

Quality Improvement: This comes after the contributions emanating from

quality control.

Quality Planning: This becomes the least the workforce can participate in.

2.4 TQM System Approach

The battle of quality management to invade the business field is already over. Quality has

now become an important factor for achieving economic success and organisation‘s

continuity (Lawton, 1993:xi) Before proceeding in discussing the TQM system approach it

may be useful to define what TQM is.


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2.4.1 Defini tion of Total Quali ty Management (TQM )

After an elaboration of the meaning of the term quality has been made, it becomes relatively

easy to define total quality management. TQM is a managerial approach that achieves the

broad meaning of quality. Firstly, however the meaning of the term ‗management‘ is

addressed. Crosby (1979:21) defines management as the function responsible for establishing

the purpose of an operation, determining measurable objectives and taking the action

necessary to accomplish those objectives. Crosby mentions two specific responsibilities of

management as establishing operation‘s purpose and measurable objectives as well as

ranking necessary actions to accomplish those objectives.

Ozeki and Asaka (1990:6) define management as ‗planning and implementing controls for

organised activities in a rational and efficient manner.‘ It therefore follows from these

definitions that planning and control are central to management. However, Ozeki and Asaka

break ‗controlling‘ into a four -step cycle of plan-do-check-act, which is known as PDCA

cycle. The postulation of Ozeki and Asaka is that repeated use of the PDCA cycle results in

improvement (1990:46). In other words, management‘s responsibilities according to the view

of the two include three main aspects viz. planning, controlling and improvement. In fact,

Juran (1992:14) puts it clearer by mentioning that management covers three areas of process

of planning, control and improvement in what he termed ‗Juran‘s Trilogy.‘

Perhaps the plausible way in proceeding to define TQM at this stage is to define the term

quality management. Juran (1989:82) defines quality management as the totality of ways

through which quality planning, quality control and quality improvement are achieved. For a

broader understanding, other definitions for TQM are presented in Table 2.3 below:


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1 According to ISO 8402: 1994, Quality management is ― all activities of the overallmanagement function that determine the quality policy, objectives and responsibilities andimplement them by means such as quality planning, quality control, quality assurance andquality improvement within the quality system‖. (Peach, 1997:37 )

2 ―Japanese Industrial Standard (JIS 8101- 1981), defines Quality Control (QC) as a systemof techniques for economically producing goods and services that meet the customer‘srequirements.‖ (Ozeki and Asaka, 1990:1)

3 ―Total quality control is an effective system for integrating the quality- development, qualitymaintenance, and quality- improvement efforts of the various groups in an organization so

as to enable marketing, engineering, production and service at the most economical levelswhich allow for full customer satisfaction.‖ (Feigenbaum, 1983: 6)

4 ―To practice quality control is to develop, design, produce and service a quality product

which is most economical, most useful and always satisfactory to the consumer.‖ (Ishikawa,1985:44).

5 ―A cooperative form of doing business that relies on the talents and capabilities of bothlabor an management to continually improve quality and productivity using teams‖.

(Jablonski, 1994:41)

Table 2.3: Defini tions of TQM

It is also worthwhile to mention that quality management should not be seen in isolation from

the general responsibilities of management. Rather, it should be seen as an integral part of theorganisation‘s overall system. (Peach, 1997:37-8)

Once management adopts TQM as a strategy, however, certain arrangements should be done.

Such arrangements are the subject of strategic quality.

2.4.2 Strategic Quali ty Management

Strategic quality management SQM is defined as a systematic approach for setting and

meeting quality goals throughout the company (Juran, 1989:176). Once management decides

to implement TQM, it is essential to make changes in certain arrangements within the

organisation‘s structure and culture. Juran (1989:179) suggests six major changes to apply in

order to adopt managing for quality approach which are listed below:

The establishment of broad quality goals as part of the company‘s business plan.

The adoption of cultural change that is aligned with TQM philosophy.


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The rearrangement of priorities knowing that Quality first, customer satisfaction,

employee participation and continuous improvement form part of the core of the

foundation of TQM.

Creating a new infrastructure to accommodate TQM requirements such as instituting aquality council and training facilities.

Extensive training for the entire hierarchy.

Upper-management participation in managing for quality.

Strategic quality management, basically, is concerned with setting an organisation‘s quality

objectives, mapping out the route and the means for reaching these objectives. It is about

making necessary arrangements and TQM programme requirements and the practising of

overall control.

As mentioned above, the main components of quality management are quality planning,

quality control and quality improvement. Those components are briefly explained in the

sections that follow.

2.4.3 Quali ty Plann ing

Quality planning is conducted to map out a route towards TQM. Juran‘s definition (1989:82)for quality planning is that it is ‗the activity of (a) determining customer needs, and (b)

developing the product features and processes required to meet those needs‘ (see Fig. 2.3

below).

Fig.2.3: Road-Map for Generali sed Quali ty Planning Process(Juran, 1989:88)


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Quality planning is therefore concerned with the organisation‘s goals, product features as

well as processes. It has been mentioned above that all levels within the organisation should

participate in quality planning. Suppliers and customers are also expected to participate

somehow in the planning. For example, customers can participate effectively in identifying

client needs and factors of customer satisfaction.

The quality-planning route should end with simple specific tasks and directions for operating

workforces to satisfy particular definite customer needs. The plan should identify the

processes for transforming customer needs into product specifications. These processes

should be established carefully focussing on meeting the following goals of a product:

meeting customer needs

meeting specifications

most economical

In a nutshell, the processes must assure a quality product.

2.4.4 Quali ty Control

Quality control is a fundamental part of quality management, it is a managerial process

conducted throughout the organisation to achieve organisation‘s objectives. Juran (1989:145)

defines control as a managerial process during which we:

Evaluate actual performance

Compare actual performance to goals

Take action on the difference

Similarly, another methodology for conducting control is known as PDCA Control Cycle.

The PDCA Control Cycle is shown in the diagram (Fig. 2.4) below.

Fig. 2.4: PDCA Control Cycle (Ozeki and Asaka, 1990:7)


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The PDCA Control Cycle as shown in the diagram (Fig.2.4), according to Ozeki and Asaka

(1990:7) consists of:

Plan: Determine your goals and develop a process for achieving these goals

Do: Implement your plan

Check: Evaluate the results of your plan and its implementation

Action: Take the necessary action constituting quality control.

More details on quality control are discussed in the chapter that follows.

2.4.5 Quali ty Improvement

Quality improvement acts as wheels on which the whole organisation is driven forwards.

Basically, quality improvement is a necessity for the organisation‘s management because of

the following reasons:

To survive in the competitive environment

To catch up with rising customer satisfaction levels

To keep abreast with continuously changing quality criteria

To overcome the shortcomings of new technology

With improvement is implied the ‗organised creation of beneficial change; the attainment of

unprecedented level of performance.‘ (Juran, 1989:28) It therefore follows that quality

improvement is a beneficial change in the organisation‘s objectives, structure, process and

product to increase performance as well as to eliminate deficiencies.

Improvement may be either small yet constant steps of progress or one drastic step taken

periodically. The former is termed Kaizen (Japanese for ‗small improvements‘) and the latter

Kairyo (Japanese for ‗one great improvement‘). The diagram (Fig. 2.5) depicts these two

concepts, which constitute quality improvement.


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Fig. 2.5: Kaizen and Kairyo Improvements (Galgano, 1994:123)

Kaizen improvement is a systematic approach directed at organisation‘s routine processes

and could be conducted by everyone. On the other hand, Kairyo is conducted mainly by

adopting improvements on a project-by-project basis and usually, it is undertaken by a

specific group of people expected to produce a breakthrough result (Galgano, 1994:123-4)

Both these kinds of improvements can take the form of a specific improvement strategy.

Kinlaw (1992:15) suggests five different improvement strategies. They are listed hereunder:

Responding to an immediate problem.

Preventing the occurrence or recurrence of a problem

Upgrading machines, methods and techniques

Experimenting to improve an operation or work process

Creating a new opportunity to anticipate the developing needs of a customer


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An organisation, may basically adopt one or more improvement strategies. However, several

approaches are suggested in order to carry out an improvement programme. These are usually

step-by-step approaches. Five stages are common to a number of quality improvement

approaches. These stages are:

Adoption of a programme for improvement

Setting standards for improvement

Preparation for programme implementation such as the establishment of a quality

council

Remove obstacles and delays which may prevent implementation

Conduct improvement and check results

Quality improvement should be a continuous activity in the organisation. Improvement

should be the organisation‘s culture and the basis for rewarding and recognition system.

So far the main features of the TQM framework have been presented. However, the matter of

how this whole framework works requires much more discussion. It is to this that the focus of

this research turns.

2.4.6 TQM Mechanism

TQM is a managerial approach that deals with the dynamic business environment which

consists of complex interdependencies of relationships aimed at producing quality output.

The TQM mechanism relies on the premises of considering TQM as an integral part of the

business plan and quality is a function of all the managerial aspects throughout the

organisation. In order to achieve quality, all activities of engineering, manufacturing,

marketing and administration should be considered within the quality system. Therefore,

achieving quality, implies integrating all factors that affect it.

The author of this research suggests the following TQM model presented in Fig. 2.6 where it

is believed that the model explains the mechanism and the framework of TQM within the

organisation.


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Fig. 2.6: An I ntegrated TQM Model

The following points are explanatory comments on the TQM Model as presented in Fig. 2.6

Quality standards and customer (internal and external) satisfaction are the two top

priorities and they must guide and influence the organisation‘s objectives and

business process.

The main inputs that form quality standards are:

- Customer satisfaction requirement

- Business environmental factors such as technology, environmental issues,

health concerns, social aspects, legal issues, market issues and competitiveness

- Feedback loop of supplier-customer chain outputs

All these aspects interact with quality standards which themselves go through a process of adjustment and change over time (see diagram Fig. 2.6).


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The whole supplier-customer chain basically affects quality. Therefore, supplier,

business process as well as business process output must be directly influenced by

requirements of quality standard and customer satisfaction.

Management uses a process approach to accomplish business objectives. These

processes are managed by the implementation of PDCA management cycle.

At the practical level, management should be participatory and committed to the

quality programme consequences. In addition, management needs to use TQM

techniques and tools such as Statistical Quality Control (SQC), adopting team

approach, providing quality leadership, conducting training programmes and

establishing a quality council. However, business process (macro- and micro-process)

must continuously ―go around the PDCA‖ cycle.

2.5 Quality Standards

The term ‗standards‘ as it is used in this context implies ―documented agreements co ntaining

technical specifications or other precise criteria to be used consistently as rules, guidelines or

definitions of characteristics, to ensure that materials, products, processes and services are fit

for their purpose‖ (ISO, 2002).

From the 1950s, many organisations developed quality standards that suit their own

businesses since their activities were restricted, mainly, to the local economy. By the 1970s,

the expansion of an organisation‘s activities at national level, resulted in replacing many

firm-specific standards by national standards. However, in the 1990s, international

competition and the globalised marketplace made it imperative for international standards to

play a role to facilitate international trade and to unify the international quality language

particularly for the international contractual agreements (Peach, 1997:10-11)

In this section, an overview of four quality standards is presented.


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2.5.1 ISO 9000

The International Organisation for Standards (ISO) is a worldwide federation of one national

standard body from each one of the more than 140 member countries. ISO 9000 is one of a

series of the ISO standards. ISO 9000 series of standards was first issued in 1987 and it

qualifies organisations‘ quality management system and it compr ises of two basic kinds of

standards (Peach, 1997:11), which are:

Product standards (quality assurance)

Quality system (management system)

However, ISO 9000: 2000 family consists of four primary standards (ISO, 2002), namely:

ISO 9000: Quality management system; fundamentals and vocabulary

ISO 9001: Quality management system requirements that demonstrate its capability to

meet customer requirements and enhance customer satisfaction

ISO 9004: Quality management systems; guidance for performance improvement to

enhance satisfaction for interested parties

ISO 19011: Guidelines on quality and/or environmental management systems

auditing.

Details of the ISO 9000 family are listed in Appendix A.

2.5.2 The Malcolm Baldr idge National Quali ty Programme (MBNQP)

The Malcolm Baldridge National Quality Programme is an award/recognition system. It was

established in 1988 to recognise American organisations that excel in the quality management

field (Arcaro, 1995:1). The criteria are designed to help organisations use an integrated

managerial approach to improve organisational management performance system which

results in:

Delivery of ever-improving value to customer, contributing to market success.

Improvement of overall organisational effectiveness and capabilities.

Organisational and personal learning (NIST, 2001).

The award is given in categories of manufacturing, service and small business in addition to

education and health care fields which were a latter inclusion in 1999 (NIST, 2002).


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The applicant‘s quality management is reviewed based on a seven point criteria namely:

leadership. Strategic planning, customer and market focus, information and analysis, human

resource focus, process management and business results. However, each one of these criteria

are broken down into several clusters.

Appendix B presents the areas considered for performance excellence.

2.5.3 Deming Pr ize

The Deming Prize is another award/recognition system. It was established in 1951 by the

Union of Japanese Scientists and Engineers (JUSE) in honour of W.E. Deming who has

introduced basic concepts of TQM to the Japanese in the 1950s and thereafter.

Deming Prize concentrates mainly on effective planning of organisational and operational

aspects. (Su, 2003).

The Prize is an annual award given to individuals and groups that demonstrate successful

―company wide quality control.‖ Assessment is made in ten categories viz.: policies,

organisation, information, standardisation, human resources, quality assurance, maintenance,

improvement, effects and future plans.

Appendix C shows details of categories of the Deming Prize.

2.5.4 The South A fr ican Excell ence Foundation

The South African Excellence Foundation (SAEF) is a not-for-gain company established by a

grouping of South African organisations in 1997 to support other organisations, large and

small, private and public, service and manufacturing throughout South Africa in order to

enhance their management systems through:

Promoting awareness and the importance of quality

Recognising organisations which achieve excellence

Increasing the understanding of the requirements for performance excellence (SAEF,

2002)


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SAEF‘s quality model is based on the American and European quality foundations with

different emphasis in a way that it suits South African national priorities.

The South Africa Excellence Model (SAEM) provides organisations with an ―integrated,

result-oriented framework for implementing and assessing process for managing all

operations.‖ The model criteria addresses the following areas: leadership; policy and strategy;

customer and market focus; people management; resources and information management;

process; impact on society; customer satisfaction; people satisfaction; supplier and

partnership programme and business results (SAEF, 2002).

Appendix D shows areas considered for excellence under the SAEM.

2.6 Conclusion

During the eighteenth and nineteenth century there was no quality control as it is known

today. However, in the twentieth century, quality control development has gone through three

broad stages, each stage took about 20 years, the stages are:

Inspection quality control

Statistical quality control

Total quality control

In the early 1990s all total quality control concepts have emerged as an integrated managerial

approach, and most of the leading companies adopt Total Quality Management (TQM)

programme. While in Japan TQM had been perfected more than 20 years before that.

The meaning of quality in the manufacturing field has been broadened to contain several

dimensions of engineering, manufacturing and marketing activities. In addition, product

reliability aspects are part of quality concept as well, Moreover, economical issues and

organizational arrangements as well as production impact on society and environment are

essential components that are contained in the quality concept. All these quality factors that

comprise quality should be composed in a balanced way while keeping customer satisfaction

as the focal point.


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TQM is a managerial methodology, therefore it is a principles and system approach. Some of

TQM principles are: quality integration; quality first; customer orientation; continuous

improvement strategy; prevention rather than inspection and factual-based decisions and

work force involvement.

TQM can be defined as: ―the totality of ways through which we achieve quality planning,

quality control, and quality improvement‖ (Juran, 1989:82). Planning, control and

improvement comprises the main components of organisation quality system. Quality

planning aims, basically, at determining customer needs, translate those needs into products

features then develop process required to meet those needs. Quality control is a managerial

activity with which an organisation achieves its objectives, and it can be carried out by

―going around Plan-Do-Check-Act‖ control cycle.

Finally, quality improvement is a necessity for today‘s organisations, mainly directed at

raising the quality level or eliminate deficiencies. Improvement programme can be carried

out on a project-by-project basis. Improvement can also be within routine work on a

continuous basis. However overall organisational quality objectives, organisational structure,

culture as well as quality programme requirements are the bases for the whole TQM system

and strategic quality management.

The TQM mechanism is based on the premises quality standards and customer satisfaction

being the top priorities. In addition, the whole supplier-customer chain affects quality.

Therefore, the TQM approach is to maintain and improve customer satisfaction as well as

quality standards by integrating and interacting all factors that form the business

environment.

Quality control is an essential component of the TQM system. More detail on quality control

is presented in chapter 3.


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CHAPTER 3 Quality

Control

3.1 The Meaning of Quality Control

ictionary meanings of the word ‗control‘ are many but some of them are:

―to exercise directing, restraining or governing influence over‖

―to regulate, verify as an experiment by comparison with a parallel

experiment or other relevant standard.‖

―To check.‖ (Webster, 1992:284)

Three ideas of the word ‗control‘ are implied by the above-listed meanings. These are: to

direct; to regulate, and to check results against relevant standards. All these definitions are

relevant to how the word ‗control‘ is used in the field of management.

Quality control (QC) is the practice of control activities in order to achieve quality goals.

Therefore, quality control in the manufacturing field can be defined as to direct (regulate and

check) work activities in order to achieve manufacturing quality objectives. However, several

writers suggest more detailed definitions for quality control. In fact, they deal with this term

as a system that consists of interrelated components so as to fulfil a particular objective(s).

Most of these control components, basically, revolve around the components of Plan- Do-

Check-Act (PDCA) management cycle.

D


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Ozeki and Asaka (1990:45) define the term quality control as ―defining the objective of the

job, developing and carrying out a plan to meet that objective, and checking to determine if

the anticipated results are achieved. If the anticipated results are not achieved, modifications

are made in the work procedure to fulfil the plan.‖

Feigenbaum‘s (1983:10) definition is not far from Ozeki and Asaka‘s. He reasons that quality

control is the procedure for meeting the quality goal. He then specifies, almost the same

PDCA cycle components to be used as steps in such a control. The point of departure for

Feigenbaum is the concept of planning for improvement.

For Ishikawa (1985:59), the emphasis is on the economical dimension. He postulates that

quality control has to be economical. He further points out that satisfaction of the customer is

the reason why a firm has to be engaged in quality control (1985:55). Ishikawa‘s PDCA cycle

is a redefined one presented with six steps as shown in Table 3.1:

1 Determination of Goals and Targets

2 Determining Methods of reaching Goals

3 Engaging in Education and Training

4 Implementing Work

5 Checking the Effects of Implementation

6 Taking Appropriate Action

Table 3.1: Contr ol Cycle (Ishikawa, 1985:59)

As shown in Table 3.1, Ishikawa breaks down the ‗plan‘ step in PDCA cycle into two,

namely, ‗Determination of Goals and Targets‘ and ‗Determination of Methods of Reaching

those Goals.‘ In addition, Ishikawa considers engaging in education and training as part of the

implementation step of the control cycle.

More dimensions of the quality control concept are given by Galgano (1994:108). He sees

quality control to be a revolution in attitude that influences the whole organisation movement


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as well as a means of empowering the organisation‘s constitution. According to Galgano‘s

view, quality control is ‗basically prevention‘, whereby, work continuity and performance

level are maintained. In addition, QC is carried out by applying the PDCA cycle repeatedly

basing it on statistical methods. He asserts that the ultimate objective of QC is customer

satisfaction.

All in all, the above-mentioned definitions view QC as a continuous procedure aimed at

planning and implementing all activities throughout the organisation, appraising conformance

and checking results against the planned and then taking corrective action accordingly. QC is

basically prevention. Its objective is to achieve the organisation‘s goals. However, the

ultimate objective is to fulfil customer needs.

By looking at the definition of quality control, it is obvious that quality control is a basic

condition for successful management, since it improves the organisation‘s performance and

eliminates product deficiencies (Feigenbaum, 1983:10). A noteworthy remark of particular

importance at this stage is one made by Feigenbaum (1983:11) and Galgano (1994:107) that

although QC may be discussed in separation from other management activities such as

quality planning and quality improvement, in practice, it does not have a specific stage,

hence, cannot be isolated in the whole organisation‘s operations. It starts from identification

of customer needs and ends only when customer needs have been satisfactorily met

(Feigenbaum, 1983:11). It is evident that ISO 9000:2000 (ISO:2001) adopts a ‗process

approach‘ to establish a quality management system and the PDCA cycle, is deployed

throughout the entire quality management system process.

Consequently, a legitimate question that arises is that what is the difference between quality

control on one hand and quality planning as well as quality improvement on the other. Where

does quality control fit in, in the whole quality management framework? In an attempt to

answer all such questions, Peach (1997:23) considers that the four of quality management

activities namely: quality planning, quality control, quality assurance and quality

improvement are correlated to the classic PDCA management cycle, where, each activity is

managed by the application of the whole PDCA cycle. However, quality planning focuses on

the ‗Plan Step‘; quality control focuses on the ‗Do Step‘; quality assurance focuses on the

‗Check Step,‘ and quality improvement focuses on the ‗Act Step.‘ Therefore, quality control

is basically, an essential part of both management activities of quality planning and quality

improvement. In other words, there is an inherent step of control, which in turn implements


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the plans and checks the results against the planned. The diagram (Fig. 3.1) depicts the

interrelationship of the three major quality management activities of planning, control and

improvement.

Fig. 3.1: I nterrelationship of the Three Major Quali ty Management Activiti es

The diagram (Fig. 3.1) shows Juran‘s Road Map of the planning process in the quality

planning section, column (B), (Juran, 1989:88). Column (C) shows Crosby‘s 14 steps for

continuous improvement. The quality control column (B) includes the PDCA Control Cycle

of daily routine work as well as overlapping on the control aspects of both quality planning

and quality improvement.

Apart from Peach‘s approach presented above, Juran (1992:16-17) presents another view for

the relationships of the three major management activitie

a al-saket (tqm dissertation)

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