CHAPTER 6 – TOTAL QUALITY MANAGEMENT

6.1 Evolution of Quality Management

1. Pre-Industrial
-​ Skilled craftsmen handled all stages of production, ensuring quality through pride of workmanship and
reputation.
-​ Guild apprenticeships reinforced this commitment to quality in new workers.
-​ Responsibility for the entire product rested on individuals or small groups, fostering accountability.

2. Industrial
-​ The division of labor made each worker responsible for only a small portion of the product, reducing
pride in workmanship.
-​ Foremen assumed responsibility for quality as workers became disconnected from the final product.
-​ Inspections were inconsistent or nonexistent, though some cases used 100% inspection.

3. Early 20th Century

-​ Frederick Taylor, the “Father of Scientific Management,” introduced product inspection and gauging as
fundamental manufacturing practices.
-​ G.S. Radford improved Taylor’s methods. He emphasized early quality considerations in product design
and linked quality to increased productivity and lower costs.

4. 1920s-1940s
-​ Bell Labs developed statistical control charts (1924) and sampling tables (1930s) for production
monitoring.
-​ WWII led to refining sampling techniques and mandated statistical quality control for military suppliers.
-​ The U.S. Army, Universities, and organizations like ASQC (American Society for Quality Control) now
known as ASQ used statistical methods, to promote widespread adoption.

5. 1950s
-​ Quality assurance emerged, expanding the focus from manufacturing to product design and raw
materials.
-​ Greater involvement of upper management characterized this period.

6. 1960s
-​ The “zero defects” philosophy gained prominence, promoting perfection through employee motivation
and awareness.
-​ This concept stemmed from the Martin Company’s success in delivering a “perfect” missile for the U.S.
Army.

7. 1970s
-​ Quality assurance methods spread to services such as healthcare, government, and banking services.
-​ OPEC’s (Organization of Petroleum Exporting Countries) oil embargo highlighted the need for
fuel-efficient vehicles, boosting Japanese automakers’ market share due to their superior quality
practices.
8. Late 20th Century
-​ The evolution of quality went from quality assurance to a strategic approach.
-​ It went from a reactive approach to a proactive approach.
-​ This approach expanded to include processes and services.
-​ The Strategic approach linked quality with customer satisfaction and profitability.
-​ The focus broadened to include processes and services, involving all management levels and workers
in continuous improvement.

6.2 Foundations of Modern Quality Management

1.​ Walter Shewhart

-​ Known as the “Father of Statistical Quality Control.”
-​ Developed control charts to analyze processes to determine when corrective action was
necessary.
-​ His work greatly influenced W. Edwards Deming and Joseph Juran

2.​ W. Edwards Deming

-​ A statistics professor who helped Japan improve quality post WWII, leading to the creation of
the Deming Prize.
-​ Advocated that inefficiencies and poor quality arise from systematic issues, not employees.
-​ Emphasized management’s role in fixing systems and reducing variation in output by
addressing:
Special causes of variation (correctable).
Common causes of variation (random).
-​ His concept of profound knowledge guided Japan’s rise as a global economic power.
-​ Introduced 14 Points for Management, focusing on continuous improvement and quality as a
strategic initiative.

1.​ Create constancy of purpose toward improvement of product and service.

2.​ Reduce levels of delays, mistakes, defective materials, and defective workmanship.
3.​ Cease dependence on mass inspection. ( Prevent defects rather than detect defects.)
4.​ Eliminate suppliers that cannot qualify with statistical evidence of quality.
5.​ Find problems. It is management’s job to work continually on system improvement.
6.​ Institute modern methods of training on the job.
7.​ Emphasize quality instead of volume alone. Management must prepare to take
immediate action on reports from foremen concerning barriers such as inherent defects,
machines not maintained, poor tools, and fuzzy operational definitions.
8.​ Drive out fear, so that everyone may work effectively for the company.
9.​ Break down barriers between departments. People in research, design, sales, and
production must work as a team.
10.​Eliminate goals and slogans asking for new levels of productivity without providing
methods.
11.​Eliminate work standards that prescribe numerical quotas.
 12.​Remove barriers that stand between the hourly worker and his right to pride of
workmanship.
13.​Institute a vigorous program of education and retraining.
14.​Create a structure in top management that will push every day on the above 13 points.

3.​ Joseph M. Juran

-​ Key to Japan's post-war quality success, alongside Deming.
-​ Defined quality as fitness-for-use and introduced the Trilogy:
1.​ Quality Planning: Establish processes to meet quality standards.
2.​ Quality Control: Identify when corrective action is needed.
3.​ Quality Improvement: Find better ways to operate.
-​ Emphasized management’s responsibility for 80% of quality issues and the need for
commitment to continuous improvement.
-​ Was one of the first to measure the cost of quality and demonstrate its link to profitability.

4.​ Armand Feigenbaum

-​ Advocated the "cost of nonconformance" as a driver for quality initiatives.
-​ Introduced the concept of quality as a total field, recognizing it as a holistic, organization-wide
concern.
-​ Stressed that quality is defined by the customer.

5.​ Philip B. Crosby

-​ Developed the zero defects philosophy and popularized “Do it right the first time.”
-​ Emphasized prevention over accepting defects as inevitable.
-​ His book Quality Is Free argued that quality efforts reduce costs rather than add to them.
-​ He believes that any level of defects is too high and that achieving quality can be relatively easy
as explained in his book.

6.​ Kaoru Ishikawa

-​ A Japanese quality expert influenced by Deming and Juran.
-​ Made unique contributions, including:
-​ The cause-and-effect diagram (fishbone diagram) for problem-solving.
-​ Promoting quality circles to engage workers in quality improvement.
-​ Highlighted the concept of the internal customer within organizations.

7.​ Genichi Taguchi

-​ Developed the Taguchi loss function, calculating the cost of poor quality based on deviations
from standards.
-​ Focused on the cumulative societal cost of poor quality, even when individual deviations
seemed minor.

8.​ Taiichi Ohno and Shigeo Shingo

-​ Innovators behind Toyota's kaizen philosophy of continuous improvement.
6.3 Insights on Quality Management
Successful management of quality requires that managers have insights into various aspects of quality.
Definition of Quality: Degree to which a product/service meets or exceeds customer expectations.
Performance vs. Expectations: The difference between performance and expectations determines the level
of satisfaction.

Performance = Expectations, and the difference is Zero, expectations have been met.
Performance - Expectations, and the difference is Negative, expectations have not been met.
Performance - Expectations, and the difference is Positive, performance exceeded customer
expectations.

6.3.1 Dimensions of Quality: Product and Service Quality

Customer expectations can be broken down into a number of categories, or dimensions, that customers use
to judge the quality of a product or service

Product quality is often judged on nine (9) dimensions of quality.

1.​ Performance—main characteristics of the product.
2.​ Aesthetics—appearance, feel, smell, taste.
3.​ Special features—extra characteristics.
4.​ Conformance—how well a product corresponds to design specifications.
5.​ Reliability—dependable performance.
6.​ Durability—ability to perform over time.
7.​ Perceived quality—indirect evaluation of quality (e.g., reputation).
8.​ Serviceability—handling of complaints or repairs.
9.​ Consistency—quality doesn’t vary.

When referring to a product, a customer sometimes judges the first four dimensions by its fitness for
use. Notice that price is not a dimension of quality.

Product Dimension and Examples

1. Performance - Everything works: fit and finish, ride, handling, acceleration
2. Aesthetics - Exterior and interior design
3. Features - Convenience: placement of gauges (High tech: GPS system, Safety: anti-skid, airbags)
4. Conformance - The car matches the manufacturer’s specifications
5. Reliability - Infrequent need for repairs
6. Durability - Useful life in miles, resistance to rust
7. Perceived quality - Top-rated
8. Serviceability - Ease of repair
9. Consistency - Quality doesn’t vary from car to car

The dimensions of product quality don’t adequately describe service quality. Instead, service quality is
often described using the following dimensions:
1.​ Convenience—the availability and accessibility of the service.
2.​ Reliability—the ability to perform a service dependably, consistently, and accurately.
3.​ Responsiveness—the willingness of service providers to help customers in unusual situations
and to deal with problems.
4.​ Time—the speed with which service is delivered.
 5.​ Assurance—the knowledge exhibited by personnel who come into contact with a customer and
their ability to convey trust and confidence.
6.​ Courtesy—the way customers are treated by employees who come into contact with them.
7.​ Tangibles—the physical appearance of facilities, equipment, personnel, and communication
materials.
8.​ Consistency—The ability to provide the same level of good quality repeatedly.
9.​ Expectations—Meet (or exceed) customer expectations.

Service Dimension and Examples (illustration of how service quality dimensions might apply to having
an automobile repaired)
1. Convenience - Was the service center conveniently located?
2. Reliability - Was the problem fixed and will the "fix" last?
3. Responsiveness - Were customer service personnel willing and able to answer questions?
4. Time - How long did the customer have to wait?
5. Assurance - Did the customer service personnel seem knowledgeable about the repair?
6. Courtesy - Were customer service personnel and the cashier friendly and courteous?
7. Tangibles - Were the facilities clean? Were personnel neat?
8. Consistency - Was the service quality good, and was it consistent with previous visits?
9. Expectations - Were customer expectations met?

The dimensions of both product and service quality establish a conceptual framework for thinking
about quality, but even they are too abstract to be applied operationally for purposes of product or service
design, or actually producing a product or delivering a service. They must be stated in terms of specific,
measurable characteristics.

For example, when buying a car, a customer would naturally be interested in the car's performance. But
what does that mean? In more specific terms, it might refer to a car's estimated miles per gallon, how quickly it
can go from 0 to 60 miles per hour, or its stopping distance when traveling at 60 mph. This is the sort of
detailed information that is needed to both design and produce high-quality goods and services.

Challenges in Service Quality:

●​ Customer expectations change over time and vary by individual.
●​ Moment of truth during customer interactions are crucial for perceived service quality.
●​ If customers participate in a service system (i.e., self-service), there can be increased potential
for a negative perception of quality. Adequate care must be taken to make the necessary
customer acts simple and safe. Error prevention must be designed into the system.
●​ Some quality dimensions of a product or service will be more important than others, so it is
important to identify customer priorities.

Assessing Service Quality

A widely used tool for assessing service quality is SERVQUAL ("service" and "quality") an
instrument designed to obtain feedback on an organization's ability to provide quality service to
customers. It focuses on five of the above-mentioned service dimensions that influence customers'
perceptions of service quality: tangibles, reliability, responsiveness, assurance, and empathy/courtesy.
 The results of this service quality audit help management identify service strengths and
weaknesses and gaps or discrepancies in service quality. There may be discrepancies between:
1.​ actual customer expectations and management perceptions of those expectations.
2.​ management perceptions of customer expectations and service-quality specifications.
3.​ service quality and service actually delivered.
4.​ service actually delivered and what is communicated about the service to customers.
5.​ customers' expectations of the service provider and their perceptions of provider
delivery.

6.3.2 Determinants of Quality

The degree to which a product or a service successfully satisfies its intended purpose has four primary
determinants:
1.​ Design.
2.​ How well the product or service conforms to the design.
3.​ Ease of use.
4.​ Service after delivery.

1. Design. - The design phase is the starting point for the level of quality eventually achieved. It
involves decisions about the specific characteristics of a product or service such as size, shape, and
location. Quality of design refers to the intention of designers to include or exclude certain features in
a product or service.
Design decisions must take into account customer wants, production or service capabilities,
safety, and liability (both during production and after delivery), costs, and other similar considerations. A
poor design can result in difficulties in production or service.
Designers may determine customer wants from information provided by marketing, perhaps
through the use of consumer surveys or other market research.
Designers must work closely with representatives of operations to ascertain that designs can be
produced; that is, that production or service has the equipment, capacity, and skills necessary to
produce or provide a particular design.

2. Quality of conformance - The degree to which goods or services conform to the intent of the
designers. Influenced by factors like employee skills and equipment. One important key to quality is
reducing the variability in process outputs (i.e., reducing the degree to which individual items or
individual service acts vary from one another).

3. Ease of use - The determination of quality does not stop once the product or service has been sold
or delivered. Ease of use and user instructions are important. They increase the chances but do not
guarantee, that a product will be used for its intended purposes and in such a way that it will continue to
function properly and safely.

Much consumer education takes the form of printed instructions and labeling. Thus, manufacturers
must ensure that directions for unpacking, assembling, using, maintaining, and adjusting the product
and what to do if something goes wrong (e.g., flush eyes with water, call a physician, induce vomiting,
do not induce vomiting, disconnect set immediately)—are clearly visible and easily understood.
 4. Service after delivery - For a variety of reasons, products do not always perform as expected, and
services do not always yield the desired results. Whatever the reason, it is important from a quality
standpoint to remedy the situation through recall and repair of the product, adjustment, replacement
or buyback, or reevaluation of service and do whatever is necessary to bring the product or service up
to standard. (Includes customer support, returns, and issue resolution after the product is delivered.)

6.3.3 Responsibility for Quality

—While it is true that all members of an organization have some responsibility for quality, there are certain
parts of the organization that are key areas for responsibility.
Top Management - while establishing strategies for quality, top management must institute programs to
improve quality; to guide, direct, and motivate managers and workers, and set an example by becoming more
involved with quality initiatives.

Design - includes attention to the processes that will be required to produce the products and/or services that
will be required to deliver the service to the customers.

Procurement - the procurement department is responsible for obtaining products and/or services that will not
detract from the quality of the organization's goods and services.

Production/Operation - responsible for ensuring that processes yield products and services that conforms
with the design specifications.

Quality Assurance - responsible for gathering and analyzing data on problems and working with operations to
solve problems.

Packaging and Shipping - this department is responsible for ensuring that the goods are not damaged in
transit, that packages are clearly labeled, that instructions are included, that all parts are included, and that
shipping occurs in a timely manner.

Marketing and Sales - this department is responsible for determining customer needs and to communicate
them to the appropriate departments of the organization. It is also responsible for reporting any problems with
the products and/or services.

Customer Services - this department is responsible for communicating information to appropriate

departments, dealing in a reasonable manner with customers, working to resolve problems, and follow up to
confirm that the situation has been effectively remedied.

Benefits of Good Quality

—Poor quality increases certain costs incurred by the organization, but having good quality products/services
are able fo remedy those certain costs. Here are a variety of ways in which a business organization with good
or excellent quality benefits from having such qualities:

1.​ Enhanced reputation for quality

2.​ Ability to command premium prices
3.​ An increased market share
 4.​ Greater customer loyalty
5.​ Lower liability costs
6.​ Fewer production/service problems
7.​ Fewer complaints from customers
8.​ Lower production costs
9.​ Higher profits.

6.3.4 Consequences of Poor Quality

The Consequences of Poor Quality
—It's crucial for management to recognize the different ways
in which the quality of a firm's products or services can affect
the organization and to take these into account in developing
and maintaining a quality assurance program. Some of the
major areas affected by poor quality are:
1.​ Loss of Business
2.​ Liability
3.​ Productivity
4.​ Costs

6.3.5 Cost of Quality

The Costs of Quality
—In order to ensure the success of your business organization, you must invest in the quality of your
products and/or services.

Appraisal Costs - the costs of activities designed to ensure quality or uncover defects within your
product/service. They include the cost of inspectors, testing, test equipment, labs, quality audits, and field
testing.

Prevention Costs - the costs of preventing defects from occurring. Costs include planning and administration
systems, working with vendors, training, quality control procedures, and extra attention in both the design and
production phases in order to decrease the probability of defective workmanship.

Failure Costs - costs caused by defective parts of products or by faulty services.

➔​ Internal Failures - early discovery of defects, typically during the production process. The cost of
internal failures include: lost of production time, scrap and rework, investigation cost, possible
equipment damage, and possible employee injury.

➔​ External Failures - defects were not discovered until much later, typically once the customer has
already received the product. The cost of external failures include: warranty work, handling of
complaints, replacements, liability/litigation, payments to customer or discounts.

Return on Quality - an approach that evaluates the financial returns of investments in quality.
Ethics and Quality Management
—Ethical behavior comes into play in so many situations involving quality. And as it goes, all members of an
organization have an obligation to perform their duties in an ethical manner.
6.4 Quality Awards
The Baldrige Award
Its purpose is to stimulate efforts to improve quality to recognize quality achievements, and to publicize
successful programs. Applicants are evaluated in seven main areas:
●​ leadership
●​ information and analysis
●​ strategic planning
●​ human resource management
●​ customer and market focus
●​ process management
●​ business results.

The European Quality Award

The European Quality Award is Europe’s most prestigious award for organizational excellence. The
European Quality Award sits at the top of regional and national quality awards, and applicants have often won
one or more of those awards prior to applying for the European Quality Award.

The Deming Prize

The Deming Prize, named in honor of the late W. Edwards Deming, is Japan’s highly coveted award
recognizing successful quality efforts. It is given annually to any company that meets the award’s standards.
Although typically given to Japanese firms, in 1989, Florida Power and Light became the first U.S. company to
win the award. The major focus of the judging is on statistical quality control, making it much narrower in scope
than the Baldrige Award, which focuses more on customer satisfaction.

6.5 Quality Certification

International Organization for Standardization (ISO) –promotes worldwide standards for the improvement of
quality, productivity, and operating efficiency through a series of standards and guidelines. Used by industrial
and business organizations, regulatory agencies, governments, and trade organizations, the standards have
important economic and social benefits. They increase the levels of quality and reliability, productivity, and
safety, while making products and services affordable. The standards help facilitate international trade.

ISO 9000 pertains to quality management. It concerns what an organization does to ensure that its
products or services conform to its customers’ requirements.
Categories of standards:
●​ System requirements
●​ Management requirements
 ●​ Resource requirements
●​ Realization of requirements
●​ Remedial requirements

Eight quality management principles form the basis of the latest version of ISO 9000:
1.​ Customer focus.
2.​ Leadership.
3.​ Involvement of people.
4.​ A process approach.
5.​ A system approach to management.
6.​ Continual improvement.
7.​ Use of a factual approach to decision-making.
8.​ Mutually beneficial supplier relationships.

ISO 14000 concerns what an organization does to minimize harmful effects to the environment caused
by its operations. The standards for ISO 14000 certification bear upon three major areas:

Management systems —systems development and integration of environmental

responsibilities into business planning.

Operations —consumption of natural resources and energy.

Environmental systems —measuring, assessing, and managing emissions, effluents, and

other waste streams.

ISO 24700 pertains to the quality and performance of office equipment that contains reused
components. It specifies product characteristics for use in an original equipment manufacturer’s or
authorized third-party’s declaration of conformity to demonstrate that a marketed product that contains
reused components performs equivalent to new, meeting equivalent-to-new component specifications
and performance criteria, and continues to meet all the safety and environmental criteria required by
responsibly built products.

6.6 Total Quality Management (TQM)

6.6.1 Definition of TQM
Total Quality Management (TQM)- A quest for quality in an organization. TQM expands the traditional view of
quality — looking only at the quality of the final product or services — to looking at the quality of every aspect
of the process that produces the product or service. TQM systems are intended to prevent poor quality from
occurring.

Three key philosophies in TQM

1.​ Continuous improvement (a never-ending push to improve)
2.​ Involvement of everyone in the organization
3.​ Customer Satisfaction (meeting or exceeding customer expectations)

We can describe the TQM approach as follows:

1. Find out what customers want
2. Design a product or service that will meet or exceed what customers want.
3. Design processes that facilitate doing the job right the first time. Strive to make the process "mistake-proof."
(Sometimes referred to as a fail-safing)
4. Keep track of results, and use them to guide improvement in the system.
5. Extend these concepts throughout the supply chain.
6. Top management must be involved and committed.

6.6.2 Elements of TQM

TQM elements
1. Continuous improvement-The philosophy that seeks to improve all factors related to the process of
converting inputs into outputs on an ongoing basis.
2. Competitive benchmarking-This involves identifying other organizations that are the best at something and
studying how they do it to learn how to improve your operation.
3. Employee empowerment-Giving workers the responsibility for improvements and the authority to make
changes to accomplish them provides strong motivation for employees.
4. Team approach-The use of teams for problem solving and to achieve consensus takes advantage of group
synergy, gets people involved, and promotes a spirit of cooperation and shared values among employees.
5. Decisions based on facts rather than opinion-Management gathers and analyzes data as a basis for
decision making.
6. Knowledge of tools-Employees and managers are trained in the use of quality tools.
7. Supplier quality-Suppliers must be included in quality assurance and quality improvement efforts so that
their processes are capable of delivering quality parts and materials in a timely manner.
8. Champion TQM champion's job is to promote the value and importance of TQM principles throughout the
company.
9. Quality at the source-the philosophy of making each worker responsible for the quality of his or her work.
The idea is to "Do it right the first time." Workers are expected to provide goods or services that meet
specifications and to find and correct mistakes that occur.
10. Suppliers- They are partners in the process, and long-term relationships are encouraged. This gives
suppliers a vital stake in providing quality goods and services.

Obstacles to implementing TQM

1.Lack of companywide definition of quality
2.Lack of a strategic plan for change
3.Lack of a customer focus
4.Poor intraorganizational communication
5.Lack of employee empowerment
6.View of quality as a “quick fix”
7.Emphasis on short-term financial results
8.Inordinate presence of internal politics and “turf” issues
9.Lack of strong motivation
10.Lack of time to devote to quality initiatives
11.Lack of leadership

Criticisms of TQM
1. Overzealous advocates may pursue TQM programs blindly, focusing attention on quality even though
other priorities may be more important
2.Programs may not be linked to the strategies of the organization in a meaningful way.
3.Quality-related decisions may not be tied to market performance.
4. Failure to carefully plan a program before embarking on it can lead to false starts, employee confusion,
and meaningless results.
5. Organizations sometimes pursue continuous improvement (i.e., incremental improvement) when
dramatic improvement is needed.
6. Quality efforts may not be tied to results.

6.7 Process Improvement

6.7.1 The Plan-Do-Study-Act Cycle
The plan-do-study-act (PDSA) cycle, also referred to as either the Shewhart cycle or the Deming wheel, is the
conceptual basis for problem-solving activities. Plan-do-study-act (PDSA) cycle A framework for
problem-solving and improvement activities.

The cycle is illustrated in Figure 9.1. Representing the process with a circle underscores its continuing nature.

There are four basic steps in the cycle.

Plan. Begin by studying the current process. Document that process. Then collect data on the process or
problem. Next, analyze the data and develop a plan for improvement. Specify measures for evaluating the
plan.
Do. Implement the plan, on a small scale if possible. Document any changes made during this phase. Collect
data systematically for evaluation.
Study. Evaluate the data collection during the do phase. Check how closely the results match the original
goals of the plan phase.
Act. If the results are successful, standardize the new method and communicate the new method to all people
associated with the process. Implement training for the new method. If the results are unsuccessful, revise the
plan and repeat the process or cease this project.

Employing this sequence of steps provides a systematic approach to continuous improvement.

Basic steps in problem-solving

Step 1
Define the problem and establish an improvement goal.
Give problem definition careful consideration; don’t rush through this step because this will serve as the focal
point of problem-solving efforts.

Step 2
Develop performance measures and collect data.
The solution must be based on facts. Possible tools include a check sheet, scatter diagram, histo-gram, run
chart, and control chart.

Step 3
Analyze the problem.
Possible tools include a Pareto chart, a cause-and-effect diagram.

Step 4
Generate potential solutions.
Methods include brainstorming, interviewing, and surveying.

Step 5
Choose a solution.
Identify the criteria for choosing a solution. (Refer to the goal established in Step 1.) Apply criteria to potential
solutions and select the best one.

Step 6
Implement the solution.
Keep everyone informed.

Step 7
Monitor the solution to see if it accomplishes the goal.
If not, modify the solution, or return to Step 1. Possible tools include control charts and run charts

6.7.2 Six Sigma

Six Sigma is a business process for improving quality, reducing costs, and increasing customer satisfaction.
The term Six Sigma has several meanings. Statistically, Six Sigma means having no more than 3.4 defects per
million opportunities in any process, product, or service. Conceptually, the term is much broader, referring to a
program designed to reduce the occurrence of defects to achieve lower costs and improved customer
satisfaction. It is based on the application of certain tools and techniques to selected projects to achieve
strategic business results.

In the business world, six-sigma programs have become a key way to improve quality, save time, cut costs,
and improve customer satisfaction. Six Sigma programs can be employed in design, production, service,
inventory management, and delivery. It is important for six-sigma projects to be aligned with organizational
strategy.

Motorola pioneered the concept of a Six Sigma program in the 1980s and actually trademarked the term.
Today, six sigma concepts are widely used by businesses, governments, consultants, and even the military as
a business performance methodology.

There are management and technical components of Six Sigma programs. The management component
involves providing strong leadership, defining performance metrics, selecting projects likely to achieve
business results, and selecting and training appropriate people. The technical component involves improving
process performance, reducing variation, utilizing statistical methods, and designing a structured improvement
strategy, which involves definition, measurement, analysis, improvement, and control.

For Six Sigma to succeed in any organization, buy-in at the top is essential. Top management must formulate
and communicate the company’s overall objectives and lead the program for a successful deployment. Other
key players in Six Sigma programs are program champions, “master black belts,” “black belts,” and “green
belts.” Champions identify and rank potential projects, help select and evaluate candidates, manage program
resources, and serve as advocates for the program. Master black belts have extensive training in statistics and
the use of quality tools. They are teachers and mentors of black belts. Black belts are project team leaders
responsible for implementing process improvement projects. They have typically completed four weeks of Six
Sigma training and have demonstrated mastery of the subject matter through an exam and successful
completion of one or more projects. Green belts are members of project teams.

Black belts play a pivotal role in the success of Six Sigma programs. They influence change, facilitate
teamwork, provide leadership in applying tools and techniques, and convey knowledge and skills to green
belts. Black belt candidates generally have a proven strength in either a technical discipline such as
engineering or a business discipline. Candidates also must have strong “people skills” and be able to facilitate
change. And they must be proficient in applying continuous improvement and statistical methods and tools. A
black belt must understand the technical aspects of process improvement as well as the expected business
results (time, money, quality improvement).

Six Sigma is based on these guiding principles:

1. Reduction of variation is an important goal.
2. The methodology is data-driven; it requires valid measurements.
3. Outputs are determined by inputs; focus on modifying and/or controlling inputs to improve outputs.
4. Only a critical few inputs have a significant impact on outputs (the Pareto effect); concentrate on those.
DMAIC (define-measure-analyze-improve-control) is a formalized problem-solving process of Six Sigma. It is
composed of five steps that can be applied to any process to improve its effectiveness. The steps are:
1.​ Define: Set the context and objectives for improvement.
2.​ Measure: Determine the baseline performance and capability of the process.
3.​ Analyze: Use data and tools to understand the cause-and-effect relationships of the process.
4.​ Improve: Develop the modifications that lead to a validated improvement in the process.
5.​ Control: Establish plans and procedures to ensure that improvements are sustained.

6.7.3 Zero Defects Theory

Zero Defects, a term coined by Mr. Philip Crosby in his book “Absolutes of Quality Management,” has emerged
as a popular and highly-regarded concept in quality management – so much so that Six Sigma is adopting it as
one of its major theories. Unfortunately, the idea has also faced a fair degree of criticism, with some arguing
that a state of zero defects cannot exist. Others have worked hard to prove the naysayers wrong, pointing out
that “zero defects” in quality management doesn’t mean perfection but rather relates to a state where waste is
eliminated, defects are reduced, and you are maintaining the highest quality standards in projects.

Zero defects is a mindset that emphasizes the importance of getting things right the first time. It aims to
eliminate defects, improve product or service quality, and reduce costs associated with waste.

From a literal standpoint, it’s pretty obvious that attaining zero defects is technically not possible in any sizable
or complex manufacturing project. According to the Six Sigma standard, the definition of zero defects is
defined as 3.4 defects per million opportunities (DPMO), allowing for a 1.5-sigma process shift. The zero
defects concept should pragmatically be viewed as a quest for perfection in order to improve quality in the
development or manufacturing process. True perfection might not be achievable but at least the quest will push
quality and improvements to a point that is acceptable under even the most stringent metrics.

During the 1960s, the concept of “zero defects” gained favor. This approach focused on employee motivation
and awareness, and the expectation of perfection from each employee. It evolved from the success of the
Martin Company in producing a “perfect” missile for the U.S. Army.

How to Adopt a Zero Defects Approach

A zero defects approach is a quality management philosophy that aims to eliminate errors and defects in all
production or service delivery stages. Below are some steps that can help you adopt a zero defects approach:

1.​ Create a culture of quality: Emphasize the importance of quality throughout the organization. Train
employees to focus on quality in every aspect of their work and encourage them to take pride in
delivering defect-free products or services.
 2.​ Establish clear quality standards: Define quality standards for all processes and products, including
metrics to measure and monitor quality. Ensure that everyone in the organization understands and
follows these standards.
3.​ Identify potential defects: Conduct a thorough analysis of all processes and products to identify
potential sources of defects. This can include analyzing customer feedback, conducting quality
audits, and reviewing production processes.
4.​ Develop preventative measures: Once potential defects are identified, develop preventive measures
to eliminate or reduce the risk of defects occurring. This can include implementing quality control
measures, improving training programs, and using more reliable production processes.
5.​ Monitor and measure quality: Continuously monitor and measure quality to ensure that processes
and products meet established quality standards. Use data and feedback to identify areas for

improvement and adjust processes as needed.

6.​ Encourage continuous improvement: Continuously look for ways to improve processes and products
to achieve even higher levels of quality. Encourage employees to provide feedback and ideas for
improvement.

Citation: Simplilearn. (2024). The concept of zero defects in Quality management. https://www.
simplilearn.com/concept-of-zero-defects-quality-management-article

6.7.4 Lean Manufacturing

Lean manufacturing is a production process based on an ideology of maximizing productivity while
simultaneously minimizing waste within a manufacturing operation. The lean principle sees waste as anything
that doesn’t add value that the customers are willing to pay for.

5 Lean Principles - Lean principles are a set of guidelines that are designed to help businesses, optimize
processes and improve efficiency.
1.​ Identify value
2.​ Map the value stream
3.​ Create flow
4.​ Establish pull system
5.​ Pursue perfection

8 wastes of Lean Manufacturing "DOWNTIME"

1.​ Defects
2.​ Overproduction
3.​ Waiting
4.​ None-Utilized Talent
5.​ Transportation excess
6.​ Inventory excess
 7.​ Motion excess
8.​ Excess processing

6.7.5 Just-In-Time Manufacturing

is a production strategy that aims to produce goods only when they are needed and in the exact
quantities required.

CORE PRINCIPLES
1.​ Pull System - Production is triggered by actual customer demand, not by forecasts or pre-determined
schedules.
2.​ Minimal inventory - JIT aims to keep inventory levels as low as possible.
3.​ Continuous flow - The production process is designed to ensure a smooth and continuous flow of
materials and products, minimizing delays and interruptions.
4.​ High quality - JIT emphasizes high product quality to prevent defects that would disrupt the flow and
lead to rework or waste.

BENEFITS OF JIT
REDUCED INVENTORY COSTS
-​ Lower storage cost: by minimizing inventory businesses can reduce the costs associated with
warehousing and handling.
-​ Less waste: reduces the risk of obsolescence and spoilage.
-​ Improved cash flow: less capital is tied up in inventory, freeing up funds for other investments.

IMPROVED EFFICIENCY & PRODUCTIVITY

-​ Faster production cycles: eliminating unnecessary steps and delays in the production process leads
to faster production times.
-​ Improved quality: by focusing on producing only what is needed, businesses can prioritize quality
control and reduce defects.

ENHANCED RESPONSIVE TO MARKET CHANGES

-​ Faster Delivery times: JIT enables businesses to meet customer orders quickly and efficiently,
enhancing customer satisfaction.
-​ Reduced lead times: Less time is spent on waiting for materials or components, leading to faster
overall lead times.

6.7.6 Continuous improvement

CONTINUOUS IMPROVEMENT
 The philosophy that seeks to improve all factors related to the process of converting inputs into
outputs on an ongoing basis is called continuous improvement. It covers equipment, methods,
materials, and people.

What is Kaizen?
Kaizen is a Japanese management philosophy that focuses on continuous improvement. The
term “Kaizen” is a Japanese word that originated from two components: “kai,” meaning “change,” and
“zen,” meaning “good” or “for the better.” Combined, they form the concept of “continuous
improvement” or “change for the better.”

Kaizen was shaped by influential figures like W. Edwards Deming, an American expert in
quality management. In the 1950s, Deming introduced statistical process control methods to Japan,
emphasizing the importance of quality and continuous improvement. His ideas greatly influenced the
development of Kaizen.

Soon enough, Kaizen started spreading worldwide and was adopted by different industries like
healthcare, services, and software development. It became a go-to approach for organizations aiming
for continuous improvement, waste reduction, and increased efficiency.

6.7.7 5s Practices
5S PRACTICES
1.)​Seiri(Sort) - Remove unnecessary items and arrange the
remaining items and equipment neatly.
2.)​Seiton(Straighten) - Organize the workspace.
3.)​Seiso(Shine) - Clean the workspace
4.)​Seiketsu(Standardize) - Document the best practices and
implement them consistently across the organization.
5.)​Shitsuke(Sustain) - This step often requires training and
communication to help employees become familiar with the 5S
procedures.

Benefits of Kaizen
●​ Continuous improvement
●​ Improved quality
●​ Waste reduction
●​ Enhanced productivity
●​ Promotes employee involvement

Conclusion
 Kaizen, a Japanese management philosophy centered around continuous improvement, has
proven to be a powerful approach across various industries. Originating from the post-World War II
era and heavily influenced by figures like W. Edwards Deming, Kaizen emphasizes making
incremental improvements in quality, efficiency, and waste reduction.