1. Total Quality Management
Lecture: 1
By Engr. Shakeel Ahamd

2. Definition
Quality is the totality of features and characteristics of
a product or service that bear on its ability to satisfy
given needs. Quality refers to how good something is
compared to other similar things. In other words, its
degree of excellence. ... The ISO 8402-1986 standard
defines quality as: “The totality of features and
characteristics of a product or service that bears its
ability to satisfy stated or implied needs.”

3. Deming's theory
Deming opined that by embracing certain principles of
the management, organizations can improve the
quality of the product and concurrently reduce costs.
Reduction of costs would include the reduction of
waste production, reducing staff attrition and
litigation while simultaneously increasing customer
loyalty. The key, in Deming’s opinion, was to practice
constant improvement and to imagine the
manufacturing process as a seamless whole, rather
than as a system made up of incongruent parts.

4. Deming's theory
 In the 1970s, some of Deming's Japanese proponents
summarized his philosophy in a two-part comparison:
1. Organizations should focus primarily on quality,
which is defined by the equation ‘Quality = Results
of work efforts/total costs’. When this occurs, quality
improves, and costs plummet, over time.
2. When organizations' focus is primarily on costs, the
costs will rise, but over time the quality drops.

5. Deming's cycle
Also known as the Shewhart Cycle, the Deming Cycle, often
called the PDCA, was a result of the need to link the
manufacture of products with the needs of the consumer
along with focusing departmental resources in a collegial
effort to meet those needs.

6. Deming cycle
The steps that the cycle follow are:
 Plan: Design a consumer research methodology that
will inform business process components.
 Do: Implement the plan to measure its performance.
 Check: Check the measurements and report the
findings to the decision-makers.
 Act/Adjust: Draw a conclusion on the changes that
need to be made and implement them.

7. The 14 points for managements
Deming’s other chief contribution came in the form of his 14
Points for Management, which consists of a set of guidelines for
managers looking to transform business effectiveness.
 Create constancy of purpose for improvement of product and
service
 Follow a new philosophy
 Discontinue dependence on mass inspection
 Cease the practices of awarding business on price tags.
 Strive always to improve the production and service of the
organization
 Introduce new and modern methods of on-the-job training
 Device modern methods of supervision

8. The 14 points for managements
 Let go of fear
 Destroy barriers among the staff areas.
 Dispose of the numerical goals created for the workforce.
 Eradicate work standards and numerical quotas
 Abolish the barriers that burden the workers
 Device a vigorous education and training program
 Cultivate top management that will strive toward these
goals

9. Service and product Quality
The product/service is seen as a set of features that
enhance customer satisfaction. While this may or may
not be a customer focus (depending if the customer
truly asked what product enhancements they wanted),
in reality adding additional features in a hope that
they will create customer satisfaction is the approach.
This approach adds to the cost of the
product. Justification for these added features must
be paid for by additional customer expenditure or the
organization gaining a pay-off due to increased
customer loyalty.

10. Customer orientation
Customer orientation is a business strategy in the lean
business model that requires management and
employees to focus on the changing wants and needs
of its customers. In other words, it’s a company-wide
philosophy that the customer’s wants and needs are
the first priority of all management and employees.

11. Customer Orientation
 Most modern companies have transitioned to a more
customer-oriented approach to product design,
development, and marketing strategy, but a company that
truly embraces this idea changes it’s entire operations to fit
consumer needs. Traditionally, a manufacturer employee
never had a reason to be aware of the consumers’ wants or
needs.
 Management would introduce products and the employees
would be in charge of producing them according to the
drawings and plans. Modern companies focus on educating
employees about consumers’ needs, so they can change
their operations or even suggest changes to management
that would benefit customers in the long run.

12. END