Fundamentals of Total Quality Management (TQM)

Foundational Principle (1887): William Cooper Procter (grandson of the founder of Procter & Gamble) established that the primary job is to produce quality merchandise that consumers will buy repeatedly.
The Triple Focus: Managers must balance three critical issues:
- Productivity: A measure of efficiency defined as the amount of output achieved per unit of input.
- Cost: Expenses acquired in operations, including conversion of inputs to outputs and labor.
- Quality: Goods and services that create customer satisfaction, directly contributing to profitability.

Transcendent (Judgmental): Defined by Walter Shewhart (1931) as the "goodness" of a product; an innate excellence you recognize when you see it.
Product Perspective: Related to the quantity of specific product attributes; higher numbers of attributes are often equated with higher quality.
User Perspective: Defined as "fitness for intended use" or how well the product performs its function based on individual customer needs.
Manufacturing Perspective: Focuses on consistency and "conformance to specifications" or standards.
Customer Perspective: As defined by the American National Standards Institute (ANSI) and the American Society for Quality (ASQ), it is the totality of features and characteristics that satisfy given needs.
Value Perspective: Balancing quality against the price paid.

Ancient Times & Middle Ages: Quality control roots in ancient Egypt (pyramids) and European craft guilds which developed standards for apprentices and master craftsmen.
Industrial Revolution: Transitioned from manual craft to mass production, shifting focus toward inspection and sorting defective products.
Statistical Quality Control (1930s-1940s): Walter A. Shewhart at Bell Labs introduced Statistical Process Control (SPC) and the control chart. World War II accelerated adoption for military equipment production.
Total Quality Management (TQM) Era (1950s-1980s):
- W. Edwards Deming: Introduced principles of Kaizen (continuous improvement) to Japan.
- Joseph M. Juran: Focused on quality planning, control, and improvement ("fitness for use").
- Kaoru Ishikawa: Developed the cause-and-effect (fishbone) diagram and quality circles.
Scientific Management: Frederick W. Taylor (father of scientific management) used time and motion studies, while Henry Ford implemented strict assembly line quality controls.

ISO 9000 Series: Introduced in 1987 by the International Organization for Standardization as a framework for Quality Management Systems (QMS).
Six Sigma: Developed by Motorola (1980s) and popularized by General Electric (1990s); uses a data-driven approach to reduce defects and variability.
Lean Management: Derived from Toyota's production system; focuses on eliminating waste.
Quality 4.0: Integration of traditional practices with digital technologies like Big Data, Artificial Intelligence, and the Internet of Things (IoT).

Global Responsibility: Focus on local decisions impacting global resources and waste reduction.
Consumer Awareness: Enhanced access to information via social media and the internet.
Globalization: Risks and opportunities associated with global supply chains and lower-cost labor.
Increasing Rate of Change: Technological shifts creating both threats and opportunities.
Workforce of the Future: Need for flexibility in where and how work is done.
Aging Population: Rising costs for healthcare and growth in markets catering to elderly lifestyles.
Twenty-first Century Quality: Quality now encompasses the entire customer experience beyond the physical product.
Innovation: Defined as the pursuit of something different and exciting, essential for survival.

Finance and Accounting: Responsible for controlling funds and ensuring cost-effective, profitable operations.
Legal Services: Ensures compliance with regulations (labeling, safety, shipping), manages warranties, and handles liability documentation.
Quality Assurance (QA): Technical specialists who assist managers with statistical tests and data analyses.

Inquiry: The session concludes by inviting any questions regarding the definitions, importance, or history of Total Quality Management (TQM).