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❖​ Lesson 7

TQM and Planning Tools

There are several basic tools of quality can be used singularly or in tandem to
investigate a process and identify areas for improvement, although they do not
necessarily need to be used. Is a process is simple enough or the solution obvious
enough any one may be all that is needed for improvement. They provide a means of
doing so based on facts, not just personal knowledge, which of course can be tainted
or inaccurate. Ishikawa advocates teaching these basic tools to every member of a
company as a means to making quality endemic throughout the organizations.
Different tools are used for different problem solving opportunities and many of the tools
can be used in different ways.

CAUSE AND EFFECT/ FISHBONE DIAGRAM

●​ A fishbone diagram, also called a cause and effect diagram or Ishikawa

diagram, is a visualization tool for categorizing the potential causes of a problem

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in order to identify its root causes. Typically used for root cause analysis, a
fishbone diagram combines the practice of brainstorming with a type of mind
map template.
●​ A fishbone diagram is useful in product development and troubleshooting
processes to focus conversation. After the group has brainstormed all the
possible causes for a problem, the facilitator helps the group to rate the potential
causes according to their level of importance and diagram a hierarchy. The
design of the diagram looks much like a skeleton of a fish. Fishbone diagrams are
typically worked right to left, with each large "bone" of the fish branching out to
include smaller bones containing more detail.
●​ Dr. Kaoru Ishikawa, a Japanese quality control expert, is credited with inventing
the fishbone diagram to help employees avoid solutions that merely address the
symptoms of a much larger problem. Fishbone diagrams are considered one of
the seven basic quality tools and are used in the "analyze" phase of Six
Sigma's DMAIC (define, measure, analyze, improve, control) approach to
problem solving.
●​ First used by Ishikawa in the 1940’s.
●​ The structured nature of the method forces the user to consider all the likely
causes of a problem, not just the obvious ones.

PARETO CHART

●​ Alfredo Pareto was an economist who noted that a few people controlled most
of a nation's wealth.
●​ “Pareto’s Law” has also been applied to many other areas, including defects,
where a few causes are responsible for most of the problem.
●​ The Pareto principle is based upon the principal who states that 80% of a
problem is attributable to 20% of its causes, or inputs.
●​ A PARETO chart organizes and displays information in order to demonstrate the
relative importance of various problems or causes of problems.
●​ Pareto charts can help prioritize quality problems and separate the “vital few”
problems from the “trivial many” by plotting the frequencies and corresponding
percentages of a categorical variable, which shows how to focus efforts and
resources.

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CHECKSHEETS

●​ Are also known as data collection sheets and tally charts.

●​ Checksheets are non-statistical and comparatively easy.
●​ They are used to capture data in a manual, reliable, formalized way so that
decisions can be made based on facts.
●​ As the data is collected, it becomes a graphical representation of itself.
●​ Areas for improvement can then be identified, either directly from the check
sheet or feeding the data into one of the other basic tools.
●​ A check sheet is an organized way of collecting and structuring data, its purpose
is to collect the facts in the most efficient ways.
●​ It ensures the information that is collected is what was asked for and that
everyone is doing at the same way.
●​ Data is collected and ordered by adding tally or check marks against
predetermined categories of items or measurements.
●​ It simplifies the task of analysis.

HISTOGRAM

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●​ Histograms are a form of bar chart.

●​ They are used to measure the frequency distribution of the data that is normally
grouped together in ranges or “bins”.
●​ Histogram shows pattern that fall within typical process conditions.
●​ Changes in a process should trigger new collection of data.
●​ A histogram is a graphical representation that organizes a group of data points
into user-specified ranges. It is similar in appearance to a bar graph.
●​ The histogram condenses a data series into an easily interpreted visual by taking
many data points and grouping them into logical ranges or bins.

●​ A histogram is a bar graph-like representation of data that buckets a range of

outcomes into columns along the x-axis.
●​ The y-axis represents the number count or percentage of occurrences in the data
for each column and can be used to visualize data distributions.
●​ Histograms are commonly used in statistics to demonstrate how many of a certain
type of variable occurs within a specific range. For example, a census focused on
the demography of a country may use a histogram to show how many
people are between the ages of 0 and 10, 11 and 20, 21 and 30, 31 and 40, 41
and 50, etc.

CONTROL CHARTS

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●​ Dating back to work of Shewart and Deming, there are several types of control
chart.
●​ They are practically complex statistical tools that measure how a process
changes over time.
●​ Through plotting this data against pre-defined upper and lower control limits, it
can be determined whether the process is steady and under-control, or it is
erratic and therefore out of control.
●​ Control charts focuses on monitoring performance over time by looking at the
variation in data points and, distinguishes between common cause and special
cause variations.
●​ The “DOW JONES INDUSTRIAL AVERA GE” is a good example of a control chart.
●​ Control chart is used to monitor processes that are in control, using means and
ranges. It represents data, like sales, volume, customer complaints, in
chronological order, showing how the values change with time.
●​ Control charts are the most complicated of the basic tools of TQM, but are
based on simple principles.
●​ Control limits are values that sample measurements are not expected to exceed
unless some special cause changes the process.

SCATTER DIAGRAMS

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●​ The simplest method to study the correlation between two variables wherein
the values for each pair of a variable is plotted on a graph in the form of dots
thereby obtaining as many points as the number of observations.
●​ Then by looking at the scatter of several points, the degree of correlation is
ascertained.
●​ It does not prove that one variable directly affects the other, but is highly
effective in confirming that a relationship exists between the two.
●​ Variables often represent possible cause and effect.
●​ A graphical representation of how one variable changes with respect to
another.
●​ The variable is plotted on axes at right angles to each other and the scatter in
the points gives a measure of confidence in any correlation shown.

FLOW CHART

●​ A flowchart is a visual representation of the sequence of steps and decisions

needed to perform a process.

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●​ Each step in the sequence is noted within a diagram shape. Steps are linked
by connecting lines and directional arrows.

●​ This allows anyone to view the flowchart and logically follow the process from
beginning to end.

●​ A flowchart is a powerful business tool. With proper design and construction, it

communicates the steps in a process very effectively and efficiently.

●​ This tool is used when trying to determine where the bottlenecks or

breakdowns are in work processes.

●​ A flow chart is called a process map.

●​ Can be used to help the company model its process and understand and
communicate all activities in the process, the relationships between inputs
and outputs in the process, and key decision points.

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❖​ LESSON 8

CUSTOMER VALUE STRATEGY

Total quality management ensure that employees understand their target customers
well before making any changes in the processes and systems to deliver superior quality
products for better customer satisfaction.

Identifying Customers

INTERNAL CUSTOMERS

●​ Are within the company.

●​ They are the colleagues working together for delivering a service or product for
the external customer.

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●​ An internal customer can be anyone within an organization.

●​ It could be another department, another branch or even a co-worker.

EXTERNAL CUSTOMERS

●​ May be an individual or an enterprise that hires or purchases the products or

services from another person or business in exchange of money.
●​ An external customer is someone who exists outside the organization.
1)​ The one who use the product or service.
2)​ The one who purchases the products or service.
3)​ The one who influences the sale of the product or service.

CUSTOMER SATISFACTION

●​ Customer satisfaction is defined as the number of customers, or percentage of

total customers, whose reported experience with a firm, its products, or its services
(ratings) exceeds specified satisfaction goals.
●​ It seen as a key performance indicator within business and is often part of a
balanced scorecard.
●​ Satisfaction can be expressed in many ways, like positive word-of-mouth, giving
compliments to the service provider and brand loyalty to the service
organization.
●​ The customer will always be the judge of quality.
●​ Customer satisfaction is not objectively measured but more of a feeling or
attitude.

CUSTOMER SATISFACTION METHODS

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Here are some methods that could be used to satisfy customers:

1)​ Encouraging face-to-face dealings with customers.

This is the most discouraging and complete scary part of interacting with a
customer. If one is not used to this sort of thing can be a pretty threatening
experience. It is important to meet the customers face to face at least once or even
twice in the course of a project.

2)​ Respond to messages promptly and keep the clients informed.

This goes without saying really. All people know how annoying it is to wait days for a
response to an email or phone call. It might not always be practical to deal with all
customer queries within the space of a few, hours, but at least email or call them
back and let them know about the receipt of their message and contact them
about it as soon as possible.

3)​ Being friendly and approachable by customers.

It’s very important to be friendly, courteous and to make clients feel like a friend and
one is there to help them out. There will be times when one wants to beat clients
over the head repeatedly with a blunt object.

4)​ Have a clearly defined customer service loyalty.

This may not be too important when one is just starting out, but a clearly define
customer service is going to save a lot of time and effort in the long run.

APPROACHES TO CUSTOMER SATISFACTION

1)​ Regular customer feedback system

This involves allowing communication from customers through emails, suggestion
boxes. One should keep all documents and send copies to the person who
made the complaint.
2)​ Market research

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This is done to understand customers better. This can be done through sampling
a few customers using appropriate sampling techniques and a detailed study is
conducted on their likes and dislikes.
3)​ New or last customer survey
These are useful ways of finding out what attracts customers to the organization
and indeed why they left.
4)​ Focus groups
This is intended to know what customers are thinking. A group of customers is
assembled in a meeting to answer a series of questions.
5)​ Customer visits
This involves making visits to the customer’s premises to collect information. These
are meant to know How the product or services is performing.
6)​ Front line personnel
This is the use of employees who are in direct contact with customers to
understand the customers’ expectations. These are meant to know how the
product or service is performing.
7)​ Critical incidents technique
This attempts to identify issues that delight the customer and those that satisfy
them.

DETERMINANTS OF CUSTOMER SATISFACTION

1)​ Key Indicators for Physical Products

a)​ Reliability -defined as the probability that a product, system, or service will
perform its intended function adequately for a specified period of time, or
will operate in a defined environment without failure
b)​ Aesthetics -as the study of beauty and others deal with the nature of art
and taste. In Visual communication design, aesthetics refers to an object
or design's overall visual effect created by the elements and principles of

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design and/ or other visual components. Words that define the aesthetic
quality inherit in a design are a summary of the ways visual elements
combine together to create an overall effect.
c)​ Adaptability -is the trait that allows something or someone to change
according to need or environment.
d)​ Usability -is a measure of how well a specific user in a specific context can
use a product/design to achieve a defined goal effectively, efficiently
and satisfactorily. Designers usually measure a design’s usability
throughout the development process—from wireframes to the final
deliverable—to ensure maximum usability
e)​ Functionality -is the sum or any aspect of what a product, such as a
software application or computing device, can do for a user. A product's
functionality is used by marketers to identify product features and enables
a user to have a set of capabilities. Functionality may or may not be easy
to use.
f)​ Appropriateness -is a complex, fuzzy issue that defines care that is
effective (based on valid evidence), efficient (cost-effective), and
consistent with the ethical principles and preferences of relevant
individuals, communities or society.

2)​ Key Indicators for Services

a)​ Friendliness/ courteousness of employees
b)​ Safety/ risk of service
c)​ Billing / invoicing procedure
d)​ Responsiveness to requests
e)​ Appearance of Physical Facilities
f)​ Approachability of the Service Provider
g)​ Willingness to listen to customer

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h)​ Honesty and an ability to communicate in a clear language

CUSTOMER FOCUS

Sources: https://www.zendesk.com/blog/what-is-customer-focus/

●​ The customers are the valuable assets for any organization. The success of an
organization depends to the satisfied customer. The satisfied customer tends to
purchase frequently and more. The manufacturing and service organization use
customer satisfaction as the measure of quality. Identifying the customer
expectation is the key to satisfy the customer.
●​ Whatever companies do for quality improvement, it must always be
remembered that only customers determine the level of quality. Whatever they

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do to foster quality improvement such as training employees and integrating

quality into processes management, only customers determine whether their
efforts are worthwhile.

●​ Customer expectations are higher than ever before, and your customers are
scrutinizing your business more intensely than ever. They’re comparing their
experience with your brand to the easy, fast, and personalized experiences
they’re having with the best of the best. And it’s these customer-focused
businesses that get to reap the benefits of renewed loyalty and competitive
advantage.

●​ With 89 percent of companies competing primarily on the basis of customer

experience, customer focus has never been more important. But there remains a
gap in how many companies think they’re customer-focused compared to how
many customers agree. In fact, while 80 percent of companies believe they
deliver “super experiences,” only 8 percent of customers hold that same opinion.

●​ The good news is that customer focus can be improved. And it starts by
deepening your understanding of what customer focus means and building an
effective customer focus strategy.

●​ But customer focus isn’t a responsibility that falls only on customer support, or any
single team, to earn for the entire business. While customer service skills are key to
customer focus, customer-focused companies show that the customer
experience matters across the organization, at every step of the customer
journey.

This includes:

●​ The honesty of their marketing campaigns

●​ The transparency of their pricing models
●​ The ease of their sales cycle
●​ The quality of their actual products or services

CUSTOMER SERVICE

Customer service is the direct one-on-one interaction between a consumer making a

purchase and a representative of the company that is selling it. Most retailers see this
direct interaction as a critical factor in ensuring buyer satisfaction and encouraging
repeat business.

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Quality assurance means developing operational controls to ensure that the results
match the desired outcomes. Customer service operations are designed to keep
customers satisfied while protecting the organization.

CUSTOMER SERVICE QUALITY GOALS

Customer service means helping customers solve problems. To carry out this function
effectively, customer service has to be easily accessible, knowledgeable, reliable, and
deliver results.

Quality assurance identifies these requirements and measures how well customer
service performs with respect to each one.

RELIABILITY

The quality assurance system can compare what the company promises the customer
to what the customer service delivers. If the delivered service matches customer
expectations and what it promised to deliver, quality with respect to this customer
service element is high.

COMPETENCE

Customers expect competent delivery of their services, and the definition of quality
assurance includes tracking competence. Quality assurance systems evaluate
competence by training and results.

DELIVERY

Customers expect reliable and competent service delivery in an easily accessible form.
Customer service delivery is typically over the phone or other means of electronic
communication.

SOLUTIONS

Customers are mainly interested in solution to their problems. Quality assurance includes
documenting customer complaints, tracking the actions taken to resolve them and
surveying customers on their satisfaction with the result.

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❖​ LESSON 9

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QUALITY STANDARDS

●​ Standard is an agreed way of doing something. It could be about making a

product, managing a process, delivering a service or supplying materials.
●​ Standards can cover a huge range of activities undertaken by organizations and
used by their customers.
●​ Standards are important in international trade because incongruent standards
can be barrier to trade, giving some organizations advantages in certain areas
of the world.
●​ Standards provide a clear identifiable reference that are recognized
internationally and encourage fair competition in free-market economies.

There are several quality awards and standards for organizations to strive towards. Most
of the organizations involved in these programs see them as tools to help improve their
quality processes and move forward implementing successful TQM.

MALCOLM BALDRIDGE

The Malcolm Baldrige National Quality Award (MBNQA) is an award established by the
U.S. Congress in 1987 to raise awareness of quality management and recognize U.S.
companies that have implemented successful quality management systems. The
award is the nation's highest presidential honor for performance excellence.

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Three MBNQA awards can be given annually in six categories:

●​ Manufacturing
●​ Service Company
●​ Small Business
●​ Education
●​ Healthcare
●​ Non-profit

The Seven MBNQA Criteria Categories

Organizations that apply for the MBNQA are judged by an independent board of
examiners. Recipients are selected based on achievement and improvement in seven
areas, known as the Baldrige Criteria for Performance Excellence:

1.​ Leadership: How upper management leads the organization, and how the
organization leads within the community.
2.​ Strategy: How the organization establishes and plans to implement strategic
directions.
3.​ Customers: How the organization builds and maintains strong, lasting relationships
with customers.
4.​ Measurement, analysis, and knowledge management: How the organization
uses data to support key processes and manage performance.
5.​ Workforce: How the organization empowers and involves its workforce.
6.​ Operations: How the organization designs, manages, and improves key
processes.
7.​ Results: How the organization performs in terms of customer satisfaction, finances,
human resources, supplier and partner performance, operations, governance
and social responsibility, and how the organization compares to its competitors.

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The 2019-2020 Baldrige Excellence Framework is available for the business/nonprofit,

healthcare, and education industries. The criteria focuses on managing all components
of an organization as a whole, cyber security risks, and understanding the role of risk
management within a systems perspective of organizational performance
management.

HISTORY OF MALCOLM BALDRIGE AWARD

●​ In October 1982 due to the declining US productivity, President Ronald Reagan

signed legislation mandating a national conference on productivity.
●​ A seven computer networking conferences in 1983 was prepared for the White
House Conference on Productivity sponsored by the then American Productivity
Center (now American Productivity and Quality Center).
●​ These conferences concluded in a recommendation to have a National Quality
Award just like the Deming Prize in Japan.
●​ The supposed award shall be given annually to those companies that
productively dare and meet the award requirements.
●​ The requirements and the evaluation process should be very parallel to the
Deming Prize system to be successful.
●​ Finally, on August 20, 1987 the Baldrige Award was signed and became a law
(PUBLIC LAW 100-107). The name of the award was taken after the Secretary of
Commerce under the Reagan Administration.
●​ Malcolm Baldrige was killed in an accident shortly prior to the action of the
Senate to the legislation.
●​ Baldrige, a highly respected man by world leaders had a key role on the trade
policy of the Reagan’s Administration.
●​ He was able to provide solution to the technology transfer differences with China
and India.
●​ He successfully holds the first meeting with the cabinets of Soviet Union in seven
years. These cabinet-level talks made the way for an increased accessibility of US
in the Soviet market.

Purposely the Baldrige Award was created to:

1.​ Assist encourage US firms to make quality and productivity improvement for
pride of recognition at the same time gain profit despite competition;

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2.​ Distinguish the accomplishments of those firms that made quality improvements
of their goods and services and become an example for the rest;
3.​ Create guidelines and standard which business, industry, government and other
enterprises can use to assess their own quality efforts for improvements; and
4.​ Offer definite guidance for other US firms that desire to learn how to manage for
high quality through making accessible specified information on how winners
were able to transform their cultures and achieve distinction.

ISO STANDARDS

ISO is an independent, non-governmental international organization with a membership

of 165 national standards bodies.

Through its members, it brings together experts to share knowledge and develop
voluntary, consensus-based, market relevant International Standards that support
innovation and provide solutions to global challenges.

HISTORY OF ISO

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DIFFERENT TYPES OF ISO

The International Organization for Standardization (ISO) is a non-governmental system of

national agencies whose resolution is the advancement of universal standards for
government and business. Global standards are planned for trade between nations.
They deliver a technical base and an arrangement of the best management practices.
Measures guarantee safe organizational techniques and products that lessen the
ecological effect. ISO Standards advantage business and trade by abridging
procedures and decreasing an association’s environmental risk. Consumers are also
advantaged by learning that best in class practices are thus created for worldwide
relevancy.

Environmental Management
ISO 14001:2004: This standard is the basis of improvement of an environmental
management framework (EMS). An EMS is an arrangement of rules and methods that

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are created by an association in order to guarantee consistency. An EMS advantages

an association by expanding the ecological awareness and examining approaches to
lessen its expenses.

ISO 14004:2004: It gives more particular data for execution and maintenance of an
EMS, with the aim to consistently enhance the arrangement in light of its execution. The
standard is pertinent to any industry.

ISO 5001: A yet-to-be-discharged standard would regulate energy management and

also approaches to expand energy efficiency and lessen the ecological impact of
associations. It will consider specialized and topical issues, for example, dependence
on foreign oil and global warming or climate change.

Safety and Healthcare

ISO 22000: This ISO standard sets worldwide rules for food security and handling. Major
corporations have grasped this standard, including Kraft Foods and Arla Foods. Its
objective is to concentrate on the whole food chain and to diminish safety and hazard
issues, for example, food-borne ailments.

IWA 1:2005: It regulates issues in the healthcare sector. It also gives rules to healthcare
associations in order to respond to man-made and natural calamities. In particular, the
standard gives proposals for decreasing errors and organizational waste, while grasping
a client-driven framework.

ISO 9001:2000: Helps to regulate quality management in the medical device industry. It
particularly gives recommendations and rules to enterprises which are required for the
improvement, creation, and establishment of these devices. The standard additionally
considers ceaseless monitoring inside the industry.

Transportation
ISO/TS 16949: It audits all territories of the supply network of the automotive industry. It
focuses on ranges of monitoring, training, investigation, and upgrades inside the
industry. The standard additionally concentrates on courses for the suppliers in order to
lessen their expenses and to enhance proficiency.

ISO/PAS 30003:2008: It takes a gander at particular concerns inside the transportation

and marine technology. It also concentrates on regions, for example, ship recycling
management & other material taking care of that can have potential environmental
impacts. It also addresses industry-particular concerns, for example, asbestos emission
and hazardous materials.

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ISO 31000 Family

The ISO 31000 group of standards manages risk management. As per the ISO list, ISO
31000:2009: It provides “standards and general regulations on risk management.”

ISO 31000: This is intended to be connected to a choice managing risk—whether in

business technique, products, operation, and project advancement or resource
administration.

ISO 31000: This is not utilized for accreditation but it rather gives an essential approach
to the best way in order to settle on choices where risk is included. The standard helps
the associations to answer questions identifying with likelihood and the seriousness of
results.

ISO 31010:2009: It is a risk administration standard that gives risk appraisal systems. This
standard gives an orderly way to deal with the recognized risk elements.

ISO 14000 Family

ISO 14000 standards manage Environmental Management Systems. These standards
thus emphasize on the promise in order to abide by the international environmental
laws, to keep enhancing in preventing pollution. The objective of the standard as
indicated by the ISO is to recognize and control the ecological effect of its exercises,
enhance execution and build up a methodical way in order to deal with setting and
meeting goals. This standard gives universal accreditation that an organization is an
environmental integrity.

ISO 9000 Family

ISO 9000 manages Quality Management. This standard manages what a business or an
association does to meet the client’s needs, fulfill administrative necessities, formulate
consumer loyalty and consistently enhance execution. Starting 2010, there are 25
records in the 9000 family- a – reference is recorded in assets in the event that you need
to scrap it after inspecting- – that are intended to give a premise to enhancing
everything from distribution center stock reviews, mechanical production system
methodology, sending and getting and client benefit. The rules give a global standard,
accreditation and regular phrasing whereby organizations around the globe can work
with each other.

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