1.
Cost of Quality (CoQ) Investment in prevention and appraisal
activities reduces overall CoQ over time.
Cost of Quality refers to the total cost of ensuring
that a product or service meets quality standards. It
is typically divided into four categories:
2. Leadership in TQM
A. Prevention Costs
Leadership plays a crucial role in the successful
Definition: Costs incurred to prevent defects implementation of Total Quality Management.
from occurring in the first place. Effective leaders set the tone and direction for quality
initiatives.
Examples:
A. Key Leadership Roles
o Training programs for employees
1. Vision and Strategy:
o Quality improvement initiatives
o Define a clear vision for quality within
o Process improvement and
the organization.
documentation
o Align quality objectives with business
o Supplier quality assurance
goals.
B. Appraisal Costs 2. Commitment:
Definition: Costs associated with measuring o Demonstrate a personal commitment
and monitoring activities to ensure quality.
to quality.
Examples:
o Allocate resources to quality
o Inspection and testing of materials initiatives.
and products
3. Empowerment:
o Equipment calibration and
o Encourage employee participation
maintenance
and decision-making.
o Quality audits
o Foster a culture of ownership and
C. Internal Failure Costs accountability for quality.
Definition: Costs arising from defects 4. Communication:
detected before a product reaches the o Promote open communication about
customer.
quality goals and achievements.
Examples:
o Regularly provide feedback and
o Rework and scrap updates on quality performance.
o Downtime due to quality issues 5. Recognition and Motivation:
o Waste and spoilage o Recognize and reward quality
improvements.
D. External Failure Costs
o Motivate teams to continually strive for
Definition: Costs resulting from defects excellence.
found after the product has reached the
customer. B. Leadership Qualities for TQM
Examples: Visionary Thinking: Leaders must anticipate
future quality trends and challenges.
o Warranty claims
Adaptability: Flexibility in response to
o Product recalls changes in market demands and technology.
o Loss of reputation Integrity: Uphold ethical practices and
honesty in quality processes.
o Legal liabilities
Collaboration: Promote teamwork across
Key Points:
departments and with external partners.
Minimizing prevention costs can lead to
higher appraisal and failure costs.
3. Implementation of TQM C. Success Factors
Successful implementation of TQM requires a Strong leadership commitment
structured approach that engages all levels of the
Comprehensive training programs
organization.
Integration of quality into the organizational
A. Steps for TQM Implementation
culture
1. Assessment and Planning:
Regular monitoring and measurement of
o Conduct a quality audit to understand results
current processes.
o Identify key areas for improvement
and set goals.
2. Management Commitment:
o Obtain buy-in from top management.
o Assign dedicated teams or
departments for quality initiatives.
3. Employee Involvement:
o Train employees on TQM principles
and tools.
o Create cross-functional teams for
process improvement.
4. Process Focus:
o Map and analyze existing processes.
o Redesign processes to eliminate
inefficiencies and defects.
5. Use of Tools and Techniques:
o Implement tools such as Pareto
charts, fishbone diagrams, and control
charts.
o Use statistical process control (SPC)
for ongoing monitoring.
6. Continuous Improvement:
o Adopt methodologies like PDCA
(Plan-Do-Check-Act) and Six Sigma.
o Establish a feedback loop for iterative
enhancements.
7. Customer Focus:
o Gather and act on customer feedback.
o Ensure products and services meet or
exceed customer expectations.
B. Challenges in TQM Implementation
Resistance to change
Lack of training and resources
Insufficient top management support
Poor communication and coordination
