Module 2

Kaizen: Concepts and Systems

Objectives:
After reading this chapter, the student should be able to:
 Define Kaizen as a Philosophy
 Describe the different concepts of Kaizen
 Explain the systems under Kaizen
 Apply the philosophy of Kaizen in everyday activities

INTRODUCTION
Kaizen is a philosophy that calls for people and their organization to
experience ongoing improvement at every level. Through focusing on
small, incremental change rather than dramatic innovations, it seeks to
conduct effective and efficient processes and quality outputs.

Kaizen at the workplace means continuing improvement involving,

everyone, managers and workers alike. The Kaizen business strategy
involves everyone in an organization working together to make
improvements without large capital investments.

KAIZEN CONCEPTS
Japanese word meaning continuous improvement. It is made up of two
characters which are “kai”, meaning “change”, and “zen” which meaning
“good”. It is used to describe a company culture where everyone, from the
CEO to the front desk clerk, regularly evaluates his work and thinks of
ways to improve it. The concept is that small steps on a customary basis
will lead to large improvements in due course. Kaizen entails relatively
little expense.

Originated in Japan as a result of World War II – evolved in part from

American business leaders like Dr. W. Edwards Deming who came to
help restore the country. It was first introduced by a 1951 training film
created by the American Economic and Science Section (ESS). Kaizen’s
elimination of waste through the maintenance and improvement of
processes became fundamental to Japanese management philosophy. It
has since stretch around the world to companies and organizations
wishing of follow the success of Japanese business.

Toyota – has been known as the initial company that has started Kaizen.
The application used was called “Toyota Production System” – where all
line personnel are expected to discontinue their moving production line
in the case of any irregularity and suggestions for improvement are
awarded reward. They succeeded eradicating all the wastes. Kaizen is
used for placing the terms as productivity, total quality control (TQC),
zero defects (ZD), and just-in-time (JIT).

2 types of Kaizen
1. Gemba Kaizen (actual workplace) – is an action-oriented
approach and refers to improvement activities that are carried
out in the actual workplace, like on the shop floor or on the
manufacturing line. It involves aspects of daily work that can be
 improved. The heart of gemba kaizen lies in small changes that
will transform the overall success of the company not
automatically right away but it the long run.
2. Teian Kaizen (plan) – represents a theory-based approach and
refers to strategic improvements that are prejudiced by top
management. The implementation of latest processes and
practices play the most dominant role. The overall goals are to
improved business and manufacturing practices and its
prominent methods include total quality control and just-in-time
management.

Kaizen and Management

It is also essential that management is trained and be behind the effort.
Kaizen will result in many more suggestions for the improvements and
changes and will take away from strict focus on moving items quickly
through the existing production process. Management must be prepared
to recognize some time away from current work to focus on changes with
longer-range impact.

2 major components
1. Maintenance function – it to maintain current technological.
Managerial and operating standards
2. Improvement function – is aimed at improving current standards.
Under the maintenance function, the management must first
establish policies, rules, directives and standard operating
procedures
 (SOPs) and then work towards ensuring that everybody
follows SOP. The latter is achieved through a combination of
discipline and human resource development measures.
 Innovation involves a drastic improvement in the existing
process and requires large investments and big efforts.
Kaizen signifies small improvements a result of coordinated
continuous efforts by all employees.

Initiating and implementing TQM programs need a great quantity of

planning and research. Managers are required to acquire training in
various TQM practices prior to implementing the same. There are costs
involved with the whole process of TQM. It is the manager’s responsibility
to distribute budgets for TQM at the beginning of every financial year.

A manager needs to work closely with the senior management, human

resource professionals to develop perfect implementation strategies. A
manager has to act as a bridge between the senior management and the
entire workforce.
1. The role of manager is to act as a facilitator at the workplace – it is
the duty of a manager to assist employees in implementing TQM.
 It is also his responsibility to choose and assign right
individuals who can work as line managers and take charge of
the whole project. The employees to be selected must be reliable
and diligent and capable as much as necessary to handle a key
project like TQM.
 Responsibility to allocate resources for TQM, schedule time for
different training programs and be grateful for employees who
come up with a variety of improvement ideas and strategies
which would aid the organization bring better quality products.

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 Further train subordinates to guarantee smooth
implementation of TQM without any obstacles.
2. A manager must communicate the benefits of total quality
management to all other members of the organization – call
employees on a common platform and address the benefits and
importance of TQM. Make them understand how successful
implementation of TQM programs would give way to high quality
products which would benefit the organization and the employees
as well.

Process Vs Results
Process-oriented thinking – mostly centers on how processes are carried
out through the assessment of performance indicators generated by
measuring or observing the process flow

Result-oriented thinking – basically disregards how processes flow and

work. The process result / outcomes are obtained, monitored and
evaluated systematically.

For example, micro level performance indicators include lead time, cycle
time, throughput time, and defective part ratio. While macro level
performance indicators consist of profit or customer satisfaction which
would be monitored in result-oriented thinking.

The Features of Process and Result Criteria

P (Process-Orientation) Criteria R (Result-Orientation) criteria
Long-term orientation Short-term orientation
Efforts for improvement are Performance and results are
important important
It is cared how the processes work Degree of goal achievement is
and how the results are obtained important
Process-orientation indicators are Result-orientation indicators are
followed followed
Awards are determined on the Awards are determined on the
basis of how processes flow basis of results of the processes
Rewards are generally based on Rewards are generally related to
recognition and honor geared to financial
the effort made
Discipline, time management, skill The results and reaching goals in
development, participation and designated time frame are
involvement, morale and important
communication are important
A supportive and collaborative role Control-centric behavior is more
is seen among managers in common among result-orientation
process-oriented management managers
Source: https://in.kaizen.com/blog/post/2015/05/05sdca-before-you-do-pdca.html

 Continuous improvement can be either a team management or top

management initiative. In order to be able to utilize these two-
management improvement journey.

PDCA/SDCA Cycles
Central to the philosophy of Kaizen are two cycles that involve processes
for improvement and for maintenance: Plan-Do-Check-Act (PDCA) and

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Standardize-Do-Check-Act (SDCA). When improving processes, the
following are the phases:
1. Planning Phase – planning is the most vital phase of total quality
management. in this phase employees have to come up with their
problems and queries which need to be addressed. They need to
come up with the various challenges they face in their day to day
operations and also analyze the problem’s root cause. Employees
are required to do necessary research and collect relevant data
which would help them finds solutions to all the problems.
2. Doing Phase – employees develop a solution for the problems
defined in planning phase. Strategies are devised and implemented
to overcome the challenges faced by employees. The effectiveness of
solutions and strategies is also measured in this stage.
Kaizen PDSA Cycle

https://in.kaizen.com/blog/post/2015/05/05/sdca-before-you-do-pdca.html

3. Checking Phase – is the stage where people actually do a

comparison analysis of before and after data to confirm the
effectiveness of the processes and measure the results.
4. Acting Phase – employees document their results and prepare
themselves to address others problems.

The SDCA cycle ensures that the improvements that have been done
using Kaizen works well and improvements do not slide back. It also
prevents the PCDA cycles are well established. Improvement without
standardization is stillborn to say the least.

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 SDCA Cycle

http
s://in.kaizen.com/blog/post/2015/05/05/sdca-before-you-do-pdca.html
Standard is the best, safest and easiest way, to achieve and maintain a
defined quality level.

Standards should be:

 Be simple, clear and conspicuous
 Be the best, easiest, safest way-should only have one at a time
 Preserve know – how
 Be guide-lines that enable performance
 Measurement of tasks delegated
 Assure quality, cost, delivery and safety
 Show relationship between cause and effect

With Standards:
1. Management becomes possible
2. There is a basis for training
3. There is a basis for audit or diagnosis
4. Problems are prevented from recurring and control variability

Putting Quality First

Quality – is typically among the most essential criteria customers use to
make the purchase. It is usually customer defined and referred to as the
perceived characteristics and features of a product.

Cost – generally looked at coming from the manufacturer's viewpoint, as

the overall cost of making and selling a product. An important factor,
here, is the elimination of waste in many aspects of work, such as
production, inventory, repair, rejects, motion, processing and so on.

Delivery – refers to bringing the necessary quantity of products in the

right place at the right time. The company may offer better prices using
reduced cost and attractive delivery terms.

Speak with Data

 Kaizen is a problem-solving process. Since Kaizen deals with
addressing problems or limitations, every situation must be
correctly understood.
 Kaizen has no room for "seat of the pants" operations. In order to
correct the problems in a process, detecting the problems is the

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 first thing to do. Sound data must be gathered and evaluated for
Kaizen to work for improvement. Without this data the company
will be like a flying blind. It will never be able to tell what is
working and what needs to be improved. Data is the lifeblood of
kaizen.

The Next Process is Customer

The last concept of kaizen is that the next process is the customer. This
means that all workers think that next process is the customers. So, all
workers in any process on no account pass on flawed parts or imprecise
pieces of information to those in next process particularly when the
organization has a strong commitment to consumer satisfaction. If all
workers have to be cautious on what they are doing, the customers get
the high-quality product and service as a result.

Kaizen promotes the concept of internal and external customers.

Through regarding every process in a series as a customer of the
preceding process, every stage of production can be concentrated for a
quality result. If each internal customer is delivered high quality goods,
the external customer will have a high-quality product to purchase.

Kaizen views the whole work in a specific organization as a series of

interrelated processes where each consists of a supplier and a customer.
The supplier provides the process with inputs such as materials and/or
information. The supplier can be another process within the organization
or someone outside the organization. Same goes to the customer; the
customer is either someone in the organization (internal customer) or the
final customer out in the market (external customer). The customer
receives or deals with the output of the process. Having this in mind, all
individuals within an organization deal with customers either internal or
external ones. That is, the next process is always regarded as a
customer. Through this, Kaizen tries to set up a natural commitment to
on-going process improvement throughout the organization to ensure
that external customers will always receive high quality products.

KAIZEN SYSTEMS
 Next, the systems of kaizen have to be understood. Kaizen
encompasses many of the components of Japanese businesses
that have been seen as a part of their success.
 Total quality control/total quality management, just-in-time
delivery, total productive maintenance, suggestion system, policy
development, suggestion systems, and small-group activities are all
included within the Kaizen system of running a business.

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 TQM Control

Kaizen System
JIT Production System
Total Productive Manintenance

Policy Development

Suggestions System
Small-group Activities

TQM Control
 Total quality control (TQC) and total quality management (TQM)
are Widely used in manufacturing, education, government and
service industry now. TQC/TQM have been developed as a strategy
to help management in becoming more competitive and profitable
through helping it to improve in all phases of business. TQM
necessitates that the company uphold some quality standard in all
phases of its business. This need ensuring that things are
completed right the first time and that defects and waste are
removed from operations.
 TQC is a management tool for improving total performance. TQC
means organized Kaizen activities involving everyone in a company.
Managers and workers alike should be part of a totally systemic
and integrated effort toward improving performance at every level.
It is geared towards increased customer satisfaction through
satisfying such corporate cross-functional goals as quality, cost,
scheduling, manpower development, and new product
development.
 In Japan, TQC activities are not limited to quality control alone.
Elaborate system of Kaizen strategies has been developed as
management tools within the TQC approach. TQC in Kaizen is a
movement intended at improvement of managerial performance at
all levels.

JIT Production System

 Many people have misconstrued Just-in-time (JIT) production. In
one of most frequent misunderstandings, a company expects its
suppliers to deliver just-in-time.
 JIT production has something to do with internal process. JIT is a
revolutionary way to trim down cost while at the same time
meeting the customer's delivery needs.
 For example, new stock will be ordered automatically when stock
reaches the re-order point level. So, this system ensures that the
firm can maintain the minimum required number of stocks every
day, which saves a lot of inventory costs. Also, the firm can meet
the customer's delivery needs.

Elements of JIT
1. Make stable and level the Master Production Schedule (MPS) with
uniform plant loading create a uniform load on all work centers
through regular daily production and mixed model assembly.

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 2. Decrease or eliminate set up times. Aspire for single digit set up
times less than 10 minutes or one touch setup. This is done
through better planning, process, redesign, and product redesign.
3. Trim down lot sizes. Decreasing set up times allows economic
production of smaller lots, close cooperation with suppliers which
is necessary to realize reduction
4. Shrink lead times. Production lead times can be reduced by
moving work stations closer together, applying group technology
and cellular manufacturing concepts, reduce wait-in-line length
and improving the coordination and cooperation between
successive processes. Delivery lead times can be decreased
through close cooperation with suppliers, perhaps by inducing
suppliers to be located very near to the factory.
5. Preventive maintenance. Use of machine and worker idle time to
preserve equipment and avoid breakdown.
6. Flexible work force. Workers should be trained to work on several
machines, to carry out maintenance tasks, and to do quality
inspections.
7. Oblige supplier quality assurance and execute a zero-defect quality
program. Small lots (single unit) conveyance. Make use of a control
system like Kanban system (or other signaling system) to transport
parts between work stations in smaller quantities. In its better
sense, JIT with Material Requirements Planning (MRP) system is
used to transport the parts between workstations.

Reasons for a move from batch mode to Just-in-time (JIT)

1. Batch production system is the most inefficient way to make
products.
2. Difficult to meet customer requirements, which come in varying
orders, like varying volumes in varying time frames and soon.
3. The batch system derives from the agricultural mentality. The
batch system, purchase material and produce in huge batches and
there are many processes. At every process, gather the batch and
at the end collect the finished product in a batch, which is stocked
up in the warehouse.
4. This kind of production system is based on market projection, is
good when there is demand.
5. End up with large inventory of unsold products and overload
capacity, and then borrow money to carry that inventory. By that
time, got hold of too many people for every process.

Total Productive Maintenance

 In industry, total productive maintenance (TPM) is a system of
maintaining and improving the integrity of production and quality
systems through the machines, equipment, processes, and
employees that add business value to an organization.
 TPM focuses on maintaining all equipment in top working
condition to avoid breakdowns and delays in manufacturing
processes.

The term total productive maintenance is attributed to Nippondenso, a

company that created parts for Toyota. However, Seiichi Nakajima is
regarded as the father of TPM because of his numerous contributions to
TPM.

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One of the main objectives of TPM is to increase the productivity of plant
and equipment with a modest investment in maintenance. Total quality
management (TQM) and total productive maintenance (TPM) are
considered as the key operational activities of the quality management
system. In order for TPM to be effective, the full support of the total
workforce is required. This should result in accomplishing the goal of
TPM: "Enhance the volume of the production, employee morale and job
satisfaction."

Total Productive Maintenance (TPM) is a modern Japanese concept. The

origin of TPM can be traced back to 1951 when preventive maintenance
was initiated in Japan. However, the concept of preventive maintenance
was taken from USA. Nippondenso was the first company to begin plant
wide preventive maintenance in 1960.

 Preventive maintenance is the concept wherein, operators

produced goods using machines and the maintenance group was
dedicated with work of maintaining those machines. However, with
the automation of Nippondenso, maintenance became a problem
as more maintenance personnel were required.
 Autonomous maintenance when the management decided that
the routine maintenance of equipment would be carried out by the
operators and one of the features of TPM. Maintenance group took
up only essential maintenance works.

Another objective of TPM is to increase the overall equipment

effectiveness (OEE) of plant equipment. TPM also addresses the causes
for accelerated deterioration while creating the correct environment
between operators and equipment to create ownership.
OEE has three factors which are multiplied to give one measure called
OEE performance x availability x quality = OEE

Each factor has two associated losses making 6 in total – these 6 losses
are as follows:
1. Performance - running at reduced speed and minor tops
2. Availability - breakdowns and product changeover
3. Quality - startup rejects and running rejects

The objective finally is to identify then prioritize and eliminate the causes
of the losses. This is done by self-managing teams that problem solve.
Employing consultants to create this culture is common practice.

The eight pillars of TPM are mostly focused on proactive and preventative
techniques for improving equipment reliability:
1. Focused Improvement
2. Autonomous maintenance
3. Planned Maintenance
4. Quality Maintenance
5. Cost Deployment
6. Early Equipment Management
7. Training and Education
8. Safety Health Environment

With the help of these pillars’ productivity can be increased.

Each factor has two associated losses making 6 in total, these 6 losses
are as
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Types of Maintenance
1. Breakdown maintenance – It means that people waits until
equipment fails and repair it. Such a thing could be used when the
equipment failure does not significantly affect the operation or
production or generate any significant loss other than repair cost.
2. Preventive maintenance - It is a daily maintenance (cleaning,
inspection, oiling and re-tightening), design to retain the healthy
condition of equipment and prevent failure through the prevention
of deterioration, periodic inspection or equipment condition
diagnosis, to measure deterioration. It is further divided into
periodic maintenance and predictive maintenance. Just like
human life is extended by preventive medicine, the equipment
service life can be prolonged by doing preventive maintenance.
a. Periodic maintenance (Time based maintenance - TBM) Time
based maintenance consists of periodically inspecting,
servicing and cleaning equipment and replacing parts to
prevent sudden failure and process problems
b. Predictive maintenance- This is a method in which the
service life of important part is predicted based on inspection
or diagnosis, in order to use the parts to the limit of their
service life. Compared to periodic maintenance, predictive
maintenance is condition based maintenance. It manages
trend values, by measuring and analyzing data about
deterioration and employs a surveillance system, designed to
monitor conditions through an on-line system.
3. Corrective maintenance It improves equipment and its components
so that preventive maintenance can be carried out reliably.
Equipment with design weakness must be redesigned to improve
reliability or improving maintainability
4. Maintenance prevention - It indicates the design of new equipment.
Weakness of current machines are sufficiently studied (on site
information leading to failure prevention, easier maintenance and
prevents of defects, safety and ease of manufacturing) and are
incorporated before commissioning a new equipment.

Policy Development
People follow policies, good or bad. The need, therefore, is for
organizations in developing countries to realize the importance of clear,
well-defined policy statements on quality, reflecting management's
commitment and orientation and to propagate them through various
modes, such as circulation of documents, newsletters, training,
meetings, pledge cards and personal contacts. It needs to state the level
of defects or errors that is acceptable. The policy also needs to state the
relationship between the company and the customer. The policy should
be direct and concise and should clearly define management's
commitment to quality. The policy on quality has to be a statement that
will not be misunderstood. It has to cover conformance to requirements,
time and money. Once the policy is written, management needs to
determine how to explain it to employees. The best method is for top
executives to meet personally with groups of employees to explain the
policy. This also ensures that the commitment and interest of top
management is properly understood by all.

Suggestion Systems
On the other hand, suggestion system is regarded as individual-oriented

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kaizen. Suggestion system encourages all workers to talk about their
suggestions orally with supervisors and put them into action right away,
even before submitting suggestion forms. However, all the workers don't
need to expect to get economic benefits from each suggestion. The
process to think and have the idea of each worker is vital. This system is
different from Western management which emphasis on the economic
benefits and financial incentives of suggestion systems.

The suggestion system is an integral part of an established management

system that aims at involving employees in Kaizen. The number of
worker's suggestions is regarded as important criteria in reviewing the
performance of the worker's supervisor and the manager of the
supervisor. The Japanese management encourages employees to
generate a great number of suggestions and works hard to consider and
implement these suggestions, often incorporating them into the
overall Kaizen strategy. Management also gives due recognition to
employee's efforts for improvement. An important aspect of the
suggestion system is that each suggestion, once implemented, leads to
an upgraded standard.

Three Stages of the Suggestion System

 A staff suggestion system is a formalized mechanism which
encourages employees to contribute constructive ideas for
improving the organization in which they work. The overall aim is
to gather, analyze and implement ideas in order to create results
that have a positive impact on the business and/or deliver new
value to customers. The following are the three stages of
implementing suggestion system:
1. Encouragement. In the first stage, management should make every
effort to help the workers provide suggestions, no matter how
primitive, for the betterment of the worker's job and the workshop.
This will help the workers look at the way they are doing their jobs.
2. Education. In the second stage, management should stress
employee education so that employees can provide better
suggestions. In order for the workers to provide better suggestions,
they should be equipped to analyze problems and the environment.
This requires education.
3. Efficiency. Only in the third stage, after the workers are both
interested and educated, should management be concerned with
the economic impact of the suggestions.

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 www.oeconsulting.com.sg

Benefits of a Suggestion System

Implementing an effective Staff Suggestion System that generates a
sustainable flow of good quality ideas is not impossible. In Toyota,
700,000 ideas are generated annually with a 99% implementation rate.

Here are the benefits of a suggestion system, namely:

1. Improves one's own work and the working environment
2. Engages and empowers employees
3. Creates ownership and trust
4. Improves motivation and morale
5. Improves customer satisfaction
6. Improves profitability

Many organizations have made the mistake of putting up suggestion

boxes and expect employees to participate and contribute good quality
ideas to improve the products, services and the working environment
without creating a supporting infrastructure to manage the flow of
suggestions. More often than not, these suggestion boxes are either
empty or become collectors of trash.

For a suggestions system to be successful and effective the following

factors have to be considered:
 Formation of a suggestions committee to plan and manage the
suggestions
 Defining the suggestions process, including a feedback system
 Promoting the suggestions system
 Evaluation system
 Award system
 Sustaining the suggestions system

Why Suggestion System Stumbles and How to Avoid Them

Most suggestions remain to be suggestions because of:
1. Delays in approving ideas - Respond within the day to team
member ideas whenever possible. The approval may be a "go do it"
or to give coaching to ideas that require further thought and
development. For complex or large ideas, respond within a week, or

12 | T Q M
 encourage the idea generator (person) to break the problem down
into several smaller parts.
2. Complex approval process (committees) - The approval process
should undergo observation, discussion and approval by the team
leader or supervisor. It's better to go see the actual issue in the
actual place than to discuss the issue in a conference room based
on ideas written on a piece of paper.
3. Backlog of suggestions needing approval or implementation -
Ironically, asking for quantity over quality will force the
identification of smaller problem that are easier to solve. This
reduces the backlog as more of them are "just do it" ideas. This
increases the skill and confidence of people to go through the
problem-solving process (thinking) as well as the action itself
(experimentation).
4. Less than 99% of ideas implemented - An idea should be nurtured
and the idea generator (person) should be coached so that
basically every idea is approved. Provide guidelines on what is a
good kaizen. Track approval rating visually and have a
management team problem solve the gap between current
condition and 99% implemented.
5. Inappropriate kaizen suggestions Once again, clear guidelines for
what is a good kaizen idea. Focus on the customer, improve own
work; and keep environmental targets from management policies
in mind. Process focus, not people issues, is appropriate.
6. Allowing anonymous suggestions - This defeat the purpose of
kaizen as a people development tool since the idea generator
cannot be coached. It's alright to allow anonymous suggestions
where people feel need to blow the whistle". Except that this
indicates that the workplace is not safe professionally, emotionally
or physically and is not a stable environment for kaizen. Fix that
condition before launching suggestion systems and anonymous
suggestions would not be an issue.
7. Unfair rewards - Every idea should receive a small reward. Larger
awards may be given based on several categories like effort,
creativity and impact of the kaizen idea. Encouraging kaizen idea
generation, development and implementation by teams, and giving
team rewards also lessens the possibility of unfair rewards being
given to individuals.
8. Motivating by cash only - Since humans are at the heart of kaizen,
and humans need both extrinsic (cash) and intrinsic motivation.
Sustained kaizen needs intrinsic motivation like recognition, self-
actualization, skill development, feeling fulfilled, or saving the
environment through kaizen suggestions. Management attention
and leadership is required.
9. Lack of promotion and support of the kaizen suggestion program -
Endorse kaizen in all its forms in a variety of ways. Take a long-
term view of kaizen a people development and communication
strategy. Start by encouraging idea generation by teams, and
aiming for quantity over quality. Hold periodic "championships" or
promotional events based on themes.
10. Lack of timely implementation - Companies can do these
entire well and still not get the ideas put in place quickly enough if
resources. Meaning time, money, materials, skills are not enough
for the number of great ideas team members are generating. The
skill matrix is a great enabler for suggestion systems. Once again,
the management should evaluate the gaps in the 4Ms (manpower,

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 material, machine, method) resources to keep suggestions moving
smoothly.

Small Group Activities

 A kaizen includes small-group activities-informal and voluntary
groups organized to carry out specific tasks in a workshop
environment. The quality circles are the most popular type. Quality
circles are designed to address not only quality issues but also
such issues as cost, safety, and productivity. Quality circles are
regarded as group-oriented kaizen activities. Small Group Activity
(SGA) is also known as focused or continuous improvement in
English.
 SGA finds its origin in the Japanese industry where it is called
Quality Circles (QC). SGA is a method for problem solving in teams
by structurally searching for the root causes and eliminating them.
 After standardization of the solution the reoccurrence of the
problem is prevented. The feeling of ownership is intensified
because those who are directly involved solve the problem in a
multifunctional team.
 The members of the team learn to use techniques (cause and effect
diagram, Fishbone-diagram) to find and eliminate root causes. The
team is also taught communication skills, working in teams and
decision making, in order to use each other's knowledge and
experience.

The structure of an SGA project is derived from the PDCA-circle from Dr.
W. Edward Deming and exists of 8 steps on the basis of the SGA circle.
The SGA team works independently and reports the progress by means
of communication boards.

The introduction of SGA leads to the following results:

1. Team-building
2. Improved communication
3. Higher involvement
4. Learn how to analyze and solve problems

ASSESSMENT AND EVALUATION

Direction: Read the case and answer the questions below the story

Orientation Misfortune in a Prestigious University

(Adopted from Quality and Performance excellence, 6th Edition, 2013 by Evans)

Oh what a wonderful presentation! That university presentation is really cool. I

love it besides being close to home, the university has lots of majors. Surely
Mom and Dad will like the place when they visited. Hmmm, I think I will invite
both of them to take a campus tour with me.

The campus is so big, it took us three hours to complete the tour, yet we didn't
even see everything. I wasn't sure that the tour personnel knew what he was
doing. We went into a very large auditorium but the lights weren't even on yet.
Our tour personnel, wasn't aware where to locate the switch. So we had to hold
the doors open so the light could come in. About 5 of the way through the tour,

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the personnel said, "The university isn't really a bad place to go to school; you
just have to learn and adjust to the system." I wonder what he meant by that
statement?

The application is rally puzzling. How do I let the admission office know that I
am interested in Mathematics, Civil Engineering, and Industrial Management?
Even my own parents can't figure it out. I guess I will call the admission office
for assistance.

I am so excited! Mom just handed me a letter from the university. Maybe they
already accepted me. What??? What's this? The letter said that I need to send
my transcript. I did that when I mailed in my application three weeks ago.
What's really happening? I hope it won't affect my application. I really have to
check it with admission office. You can't find my file? I thought you were
missing only my transcript. I asked my counselor if she had sent it in yet. She
told me that she sent it last week. Oh, you'll call me back when you locate my
file? Alright I will be waiting!

Finally, I've been accepted! Wait a minute, I didn't apply to the university.
That's two years associate program. I wanted Mathematics, Civil Engineering, or
Industrial Management. Well, since my only choice is this university, I really
want to go, I believe I'll send my confirmation form. It really looks like an
application. I know I gave them a lot of the same Information. I wonder why
they need it again! It's really a waste of time!

Orientation was a lot of fun! I'm glad they have taken care of my application. I
think I will really enjoy my stay in this university. After all I made lots of friends
already during the orientation. I saw my advisor and signed up for my classes.
All I have to do is to pay my tuition bills. Whoops. None of my financial
assistance is on this bill. I know I filled out all of the forms because I got a
scholarship letter from the university. There is no way my parents and I can
pay this big bill without any financial assistance. It says at the bottom, I will
lose all of my classes if I don't pay the bill on time.

I am not confirmed on the computer? I sent in my form and the fee a long time
ago. What am I going to do? I don't want to lose all of my classes. I have to go to
the admissions office or the college and get the letter that proves I am a
confirmed student. Alright. If I do that tomorrow, will I still have all of my
classes? I can't sleep, I am so nervous and stressed about my first day...

Questions:
1. How will you assess the outcome and the disorderly process in the
administration of this prestigious university? Discuss it.
_________________________________________________________________________
_________________________________________________________________________
_________________________________________________________________________
_________________________________________________________________________
_________________________________________________________________________
_________________________________________________________________________
_________________________________________________________________________
_________________________________________________________________________
_________________________________________________________________________
_________________________________________________________________________
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_________________________________________________________________________
_________________________________________________________________________
_________________________________________________________________________
_________________________________________________________________________

2. How will you help the university standardize its admission process in
order for this story not to happen again? Use the Suggestion Group
Activity (SGA) for your proposal.

15 | T Q M
 _________________________________________________________________________
_________________________________________________________________________
_________________________________________________________________________
_________________________________________________________________________
_________________________________________________________________________
_________________________________________________________________________
_________________________________________________________________________
_________________________________________________________________________
_________________________________________________________________________
_________________________________________________________________________
_________________________________________________________________________
_________________________________________________________________________
_________________________________________________________________________
_________________________________________________________________________
_________________________________________________________________________

3. Have you encountered the same story in your university? What did you
do then?
_________________________________________________________________________
_________________________________________________________________________
_________________________________________________________________________
_________________________________________________________________________
_________________________________________________________________________
_________________________________________________________________________
_________________________________________________________________________
_________________________________________________________________________
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GOOD HOUSEKEEPING

Objectives:
After reading this chapter, the student should be able to:
 Define 5s as a philosophy for improvement
 Identify the 5s activities
 Apply 5s in everyday life

INTRODUCTION
A dirty workplace cannot produce quality products. A chaotic workplace
with mess around everywhere is bound to produce poor quality products.
Everyone and all types of business benefits from having a well

16 | T Q M
constructed 5s program. It is usually manufacturing that comes to mind
but any type of business from hospitals to professional services and
every area or department within the organization will benefits from
implementing a 5s program.

The 5S
The 5s – which is a Japanese system to reduce costs, control inventory
and reduce breakdowns and accidents drastically resulting in increased
profits. It is the starting point for any company who wants to make
improvements at the workplace by reducing waste and create better
environment for its employees to work in.
 It is procedure that organizes individual workstations or
departments and consequently enhances efficiently at the micro-
level by keeping the workplace neat, orderly and accessible and it
is for this reason that it is considered as the foundation of quality
initiative in any organization.
 As systematic approach and the key to total quality environment, a
philosophy most Japanese factories endorse and practice. It leads
to foolproof systems, standard policies, rules and regulations to
give rise to a healthy work culture at the organization. Japanese
factories are well known for their cleanliness and orderliness. 5s is
the philosophy that simplifies the work environment and reduces
waste and non-value activity while improving quality efficiency and
safety.

Hardly anyone can find an individual representing Japanese company

unhappy or dissatisfied. Japanese employees never speak ill about their
organization. The process of Kaizen plays an important role in employee
satisfaction and customer satisfaction through small continuous changes
and eliminating defects. Kaizen tools give rise to a well-organized
workplace which results in better productivity and yield better results. It
also leads to employees who strongly feel attached towards the
organization. Kaizen focuses on continuous small improvements and
thus gives immediate results.

The name stands for five

Japanese words,
 seiri (sort),
 seiton (set in order),
 seiso (shine),
 seiketsu (systematize)
 shitsuke (standardize).

https://www.5stoday.com/what-is-
5s/

5S adoption is different in every facility, depending on the needs,

processes, and culture of any given workforce. However, no matter how

17 | T Q M
it's done, businesses large and small can enjoy numerous benefits from
adopting the 5S methodology which includes:
1. Improved profitability - Companies can save labor hours, money,
and other resources
2. More efficient workforce - With standard procedures in place,
personnel can center on what's important
3. Better service - With a more organized, cleaner, streamlined
workplace, employees can use more time providing exceptional
service
4. Safer workplace - Employees are at less hazard and can feel
protected in clean, organized workspaces

55 process can increase morale, create positive impressions on

customers, and increase efficiency and organization. Not only will
employees feel better about where they work, the effect on continuous
improvement can lead to less waste, better quality and faster lead times.
5S should become part of the culture of the business and the
responsibility of everyone in the organization.

SORT (Seiri)
In the first stage, sort, all tools and materials used in the work process
are taken care of. Sort refers to the sorting of the clutter from the other
items within the work area that are actually needed. Sort connotes
tidiness and structured organization.

During the sort process, all materials and tools are sorted, and only the
necessary ones are kept for continued use. In other words, this stage
requires the team to remove all items that clearly do not belong in the
working area and only leave those that are required for the processes in
question. Simply keep the necessary in work area, dispose or keep in a
distant storage area less frequently used items, discard unneeded items.
This process leads to fewer hazards and less clutter that might interfere
with productive work.

Since sort focuses on eliminating unnecessary items from the workplace,

employees should sort out and organize things well. Label the items as;
 "Necessary”,
 "Critical", "Most Important”,
 “Not needed now",
 "Useless and so on. Throw what all is useless. Keep aside what all
is not needed at the moment. Items which are critical and most
important should be kept at a safe place.

Consequences of not practicing Sorting

1. The unnecessary messes the place and the necessary are hard to
find
2. Every place can only contain so much
3. Mess sometimes causes misidentification
Junk and waste Repairable Wanted Items

Not use Repair

Discard To next step

18 | T Q M
Methods:
 First decide what is necessary and what is unnecessary. To find
out unnecessary items you should not only check the floor but also
shelves, lockers, storehouse, stairs, roofs, notice boards, etc. Your
useful floor is saved. Your searching time of tools, materials, and
papers is reduced. You have better flow of work. Your inventory
cost of unnecessary items is reduced.
 Put a red tag on unnecessary items and keep them in a separate
area.
 Discard or throw those items which have not been used in the past
one year.
 Things used once in 6 to 12 months may be stored at a distance
from work station.
 Things used more than once a month should be available at a
central point in the workplace
 Things used hourly/everyday/once a week should be near the
work station or may be worn by or kept in the pocket of your
worker there.

https://www.5stoday.com/what-is-5s/

SET IN ORDER (Seiton)

 Refers to straightening and orderliness. It is process of taking the
required items that are remaining after the removal of clutter and
arranging them in an efficient manner through the use of
ergonomics requirement for a tidy workplace. In addition, the
process should be arranged in an order that makes best use of
efficiency.
 Research says that employees waste half of their precious time
looking for items and vital documents. There should be a place for
everything, and everything should be in its proper place. This is
also known as "demarcation and labeling of place." Keeping
things in order plays an important role in the efficient use of items
which will contribute to time saving. The place for each item
should be visibly labeled or segregated. Items should be arranged
in a manner that support systematic workflow, with equipment
used most often being the most easily accessible.

19 | T Q M
  For instance, tools, equipment and parts should be reserved where
they will be used in order to straighten the flow path. Workers
should not have to bend repetitively to access materials using
ergonomics.

For the items that have been sorted as needed item, they must be kept in
the correct place to allow for easy and immediate retrieval. The targets
for orderliness could include any of the following:
1. Spaces - floors, walkways, operation areas, walls, shelves,
warehouses
2. Products raw materials, procured parts, parts for machinery, in-
process
4. inventory, assembly parts, semi-finished products, finished
products
3. Equipment - machines, tools, jigs, gauges, carts, conveyance tools,
work tables, cabinets, chairs

In this stage, the company may want to employ signboards and painting
as forms of visual methods of orderliness.
1. The Signboard Strategy - The signboard strategy is a method for
clearly indicating where, what, and how many necessary items go where,
to make the facility more orderly. The signboards should include the
following information:
a. a specific place -- "where things go" via location indicators
b. specific items - "what things" via item indicators
c. c specific amounts - "how many things" via amount indicators

2. The Painting Strategy - This strategy involves marking off the factory's
walking areas (“walkways") from its working areas ("operation areas”)
using any of the following:
a. divider lines
b. door range lines
c. markers for inventory, carts, worktables, and
d. tiger marks (yellow & black striped lines)

Consequences of not practicing Setting in Order:

• Things are rarely obtainable when needed.
• Items are misplaced in stores.
• Items that are defectives and good ones get mixed up.
• Accidents or near-accidents take place due to mess.
• Visual control of the shop floor is not feasible.
• At times, production is lost because an item necessary is available
but cannot be seen.
• In some offices, important records may not be traceable. This can
lead to loss, and embarrassment.

20 | T Q M
 https://www.5stoday.com

SHINE (Sieso)
• Shine, stands for sweeping and cleanliness. It means to clean all
items used at work or all materials used during a manufacturing
process. The workplace, for example, has to be clean and tidy all
the time. At the end of each shift, a work area is cleaned up and
everything is restored to its place. This makes it easy to know what
goes where and to have confidence that everything is where it
should be. The key point is that maintaining cleanliness should be
component of daily work. It must not be a special activity that is
initiated only when things get too cluttered. It means clean
everything, removing stains, spots and debris and eradicating
sources of dirt. The workplace ought to be kept clean. Workstation
should be de-cluttered Necessary documents should be kept in
proper folders and files. Use cabinets and drawers to store items.
• Shine is the comprehensive cleaning of the area, tools, machines
and other equipment to make certain that everything is returned to
a "nearly new" status. This will ensure that any non-conformity
stands out like an oil leak from a machine onto a bright, newly
painted clean floor.
• Clean the workspace and all equipment, and keep it clean, tidy
and organized. After the first thorough cleaning when
implementing 55, every day follow-up cleaning is compulsory in
order to maintain this improvement. A "Shining" work environment
will lead to great efficiency gains.

Shine should be integrated into daily maintenance tasks to combine

cleaning checkpoints with maintenance checkpoints. It involves the
following phases:
1. Daily cleanliness
a. Determine cleanliness targets.
b. Determine cleanliness assignments.
c. Determine cleanliness methods and tools.
d. Implement cleanliness.
2. Cleanliness inspection
3. Maintenance

21 | T Q M
STANDARDIZE (Seiketsu)
• Seiketsu, translates as "standards." A standard refers to making all
the cleaning, control, and improvement processes a customary
activity in the workplace, allowing for control and consistency.
Fundamental housekeeping standards apply everywhere in the
facility. Everybody knows precisely what his responsibilities are.
Housekeeping duties are ingredient of normal work routines.
• Standardize means keeping one's person clean, like wearing proper
working clothes, safety glasses, gloves, and shoes, as well as
maintaining a clean, healthy working environment. In addition,
standardize can be interpreted as continuing to work on the first
three 5S continually and every day.
• Employees need to respect organization's policies and adhere to
rules and regulations, Self-discipline is indispensable. Do not
report to office in casuals. Follow work procedures and do not fail
to remember to carry one’s identity cards to work. It gives an
employee a sense of pride and respect for the organization.
• Work practices should be consistent and standardized. Work
stations for a particular job should be the same. All employees
doing identical job should be able to work in any station with
similar tools that are in the same location in every station.

Consequences of not practicing Standardizing

1. Good health and safety reed the practice of standardizing.
2. Harmful chemicals, dusty chemicals, fumes and the likes can
make it an unsafe place to work in
2. Washing thoroughly and cleaning a place makes the workplace
enjoyable.
3. Personal hygiene is indispensable for healthy workforce.

SUSTAIN (Shitsuke)
• Shitsuke, means maintaining the process to retain long-term
kaizen goals and to retaining and reviewing standards. This is to
ensure that the firm has common standards and ways of working.
As soon as the previous four phases have been established, they
become the latest way of operating the organization. Maintaining a
focus on this new way of operating is indispensable, and a gradual
turn down back to the old ways of operating should not be
permitted. Except if an issue arises about improvements in

22 | T Q M
 working, a new way of doing things, or a new requirement
concerning output, it typically leads to an evaluation of the first
four commandments.
• Sustain makes certain that the company continue to continually
improve using the previous stages of 5S, maintain housekeeping,
and conduct audits and so forth.

Consequences of not practicing Standardizing:

1. If standardizing is not practiced, then the first 4-S would
backslide.
2. Lack of standards will affect all activities related to safety and
quality.

Sustain involves the habit of maintaining and following specified and

standardized procedures. This stage is best taught by example, and
therefore, the person ultimately responsible for any 55 backsliding is not
the individual worker but the manager /owner himself. Given this critical
role, the manager / owner of the business may employ the following
measures:
1. The CEO must take ultimate responsibility in 5S adoption and
Implementation
2. Explain the 5S's until everyone understands them. Emphasize
that 5S is the company's road to survival due to its practical
approach in minimizing wastes and generating savings.
3. Promote company-wide participation such as but not limited to
the following:
a. 5s Poster making contest
b. 5s Badge making contest
c. 5s Slogan making contest
d. 5s Ideas contest
e. 5s Day
f. Plant tour of a 5S Practicing Company
g. 5s Snapshots
4. Make organization and orderliness activities as visual as
possible. Be persistent, meticulous, quick and ruthless when
red-tagging and making signboards.
5. Manage people's resistance to 5S
a. Provide encouragement at every opportunity,
b. Give and receive criticisms carefully. Be polite.
c. Immediately correct and slacking-off on 5S conditions.
d. Stick to hands-on, here-and-now approach.
e. Improvement requires effort and effort requires enthusiasm.

PHASES IN TQM
IMPLEMENTATION

Objectives:

23 | T Q M
 After reading this chapter, the student should be able to:
 Recognized the different phases in TQM implementation
 Identify some of the methods in generating ideas for the
planning phase
 Name the barriers in TQM Implementation

Introduction
Jablonski offers a five-phase instruction for implementing total quality
management namely preparation, planning assessment, implementation
and diversification. Each phase is intended to be implemented as
component of a long-term goal continually increasing quality and
productivity. Jablonski’s approach is one of many that have been applied
to reach TQM, but contains the key elements commonly connected with
other accepted total equally systems.

PREPARATION
It is during preparation when management decides whether or not to
pursue a TQM program. They undergo initial training, identify needs for
outside consultants, develop a specific vision and goals, draft a corporate
policy, commit the necessary resources, and communicate the goals
throughout the organization.

PLANNING
In the planning stage, a detailed plan of implementation is drafted
(including budget and schedule), the infrastructure that will support the
program is established, and the resources necessary to begin the plan
are earmarked and secured.
Planning for quality starts with setting quantifiable and measurable
targets. While doing this the organizations needs to keep costumer’s
wants in mind. Once the quality objective is decided it is important to
think about the market feasibility of the product. Once everything is
planned the organization needs to assess its capability to deliver the
target quality. If there is gap capability then the organization needs to fill
the gap by upgrading to the required technology and skill sets.

A ranking chart should be developed to finalize the most important

aspect of quality planning and more focus should be given to that aspect.
Communicating to the target plan to frontline people’s is important
because they are the people who will implement everything in the real-life
situation. They should be properly convinced before starting the new
course. Plan monitor the progress and finding and correcting deviations.

The following are some of the methods in generating ideas for the
planning phase, which are:
1. The ‘5 Whys’- asking ‘Why?’ at least five minutes to unearth the
core cause of a problem.
2. Benchmarking is a technique that measures a company’s
performance against the best in industry. This technique can help
in determining how to be best companies achieve high performance
and quality levels. The following are types of benchmarking:
a. Internal benchmarking is a comparison between operations or
parts of operations which are within the same total
organization. For example, a large motor vehicle manufacturer
with several factories might chose to benchmark each factory
against the others.

24 | T Q M
 b. External benchmarking is a comparison between an operation
and other operations which are part a different organization.
c. Non-competitive benchmarking is benchmarking against external
organizations which do not compete directly in the same
markets.
d. Competitive benchmarking is a comparison directly between
competitors in the same, or similar, markets.
e. Performance benchmarking is a comparison between the levels
of achieved performance in different operations. For example,
an operation might compare its own performance in terms of
some or all of our performance objectives such as quality,
speed, dependability, flexibility and cost against other
organizations’ performance in the same dimensions.
f. Practice benchmarking is a comparison between an
organization’s operations practices, or way of doing things, and
those adopted by another operation. For example, a large retail
store might compare its system and procedures for controlling
stock level with those used by another department store.
3. Brainstorming is a technique in which a group of people share
ideas and thoughts in a relaxed atmosphere on various problems
in order to stimulate unrestrained collective thinking.

ASSESMENT
This process requires a thorough self-assessment both from management
and customers or clients. The assessment will be on the qualities and
characteristics of members of the company as well as the company itself.
There are three methods that can used in making an assessment which
are discussion group methods, survey method and award type. Each
assessment method has advantages as well as disadvantages. Discussion
group method can yield some useful insights and facilitate effective
improvement activities. However, the scoring process is open to greater
subjectivity and care should be exercised when analyzing scores.
Survey method is excellent for measuring employee perceptions of TQM
in an organization. However, perceptions may or may not coincide with
reality. Improvement activities should be based on facts, not opinions.
Perceptions studies require further verification through research.
Award type self-assessment is the most effective form. The organization
gathers information, generates a list of strengths and improvement
opportunities and scores it. This process can be facilitated by external
experts who will generally speed up the process and help eliminate
scoring bias.

IMPLEMENTATION
At this point, the organization can already begin to determine its return
on its investment in TQM. It is during this phase that support personnel
are chosen and trained, and managers and the workforce are trained.
Training entails raising worker’s awareness of exactly what TQM involves
and how it can help them and the company. It also explains each
worker’s role in the program and explains what is expected of all the
workers.

The Barriers to TQM Implementation

1. Lack of management commitment- In order for any organizational
effort succeed, there must be substantial management
commitment of management time and organizational resources.
The purpose must be clearly and continuously communicated to

25 | T Q M
 all personnel. Management must consistently apply the principles
of TQM.
2. Inability to change organizational culture- Changing organization’s
culture is difficult and will require as much as five years.
Management must understand and utilize the basic concepts of
change. They are:
a. People change when they want to and to meet their own needs.
b. Never expect anyone to engage in behavior that serves the
organization’s values unless adequate reason has been given.
c. For change to be accepted, people must be moved from a state
of fear to trust.
d. Improper planning: All constituents of the organization must be
involved in the development of the implementation plan and any
modifications that occur as the plan evolves.
3. Lack of continuous training and education- Training and education
is an ongoing process for everyone in the organization. Needs must
determine and a plan developed to achieve those needs. Training
and education are most effective when senior management conduct
the training on the principles of TQM.
4. Incompatible organizational structure and isolated individuals and
departments- Differences between departments and individuals
can create implementation problems. The use of multifunctional
teams will help to break down long-standing barriers.
5. Ineffective measurement techniques and lack of access to data and
results- Key characteristics of the organization should be measured
so that effective decisions can be made.
6. Paying inadequate attentions to internal and external customer-
Organizations need to understand the changing needs and
expectations of their customers. Effective feedback mechanism
that provide data for decision making are necessary for this
understanding.
7. Inadequate use of empowerment and teamwork- Teams need to
have the proper training and at least in the beginning, a facilitator,
whenever possible, the team’s recommendation should be followed.
Individuals should be empowered to make decisions that affect the
efficiency of their process or the customer satisfaction.
8. Failure to continually improve- It is tempting to sit back and rest on
laurels. However, a lack of continuous improvement of the
processes, product, and/or service will even leave the leader of the
pack in the dust.

If the top management takes quality as a form window dressing the

organization is not going to attain the desired goal. Companies which
maintain quality only during the time of inspection by ISO personnel
can’t achieve quality goals. It is difficult but important to change the
culture of the organization. Paradigm change is needed to force people to
strive for the new quality goal. The way Jack Welch managed change in
GE is a very good example of people involvement in change management.
As quality is a continuous and never-ending process, so is the training.
Even the whole lifetime is not enough for complete learning. So training
should go on forever. This is important because customer’s preferences
keep on changing.

Sony can be good example of an organization keeping pace with

customer’s preference change. Sony tape-recorder made the gramophone
an obsolete product. Later on, Walkman changed the way for portable

26 | T Q M
music. At present even, Walkman is an obsolete product and Sony sells
MP3 players by the same brand name. People should not live in silos.
They should come out to facilitate better interactions to share knowledge.
People should be empowered to sort out issues. This will reduce the
throughout time. Obviously, accountability is important along with
empowerment. If frontline personnel are empowered to sort out
costumer’s problems then it will save precious time of the top
management.

DIVERSIFICATION
In this stage, managers utilize their TQM experiences and successes to
bring groups outside the organization (suppliers, distributors, and other
companies that have an impact on the business’s overall health) into the
quality process. Diversification activities include training, rewarding,
supporting and partnering with groups that are embraced by the
organization’s TQM initiatives. These are all things that will help in being
successful with total quality management.

ASSESSMENT AND EVALUATION

Direction: Read the case and answer the questions below the story

How Will I Implement TQM

Source:https://books.google.com.ph/books?
id=VuUc33ctiRoc&dq=5+phases+tgm+implementation&source=8

I entered our steel family business at a very young age. At my age of 63 I still
continue to run the business with an iron hand of administration. The last year
turnover of the company was 6%. I spend the first half of the day interacting
with the grass root employees of the company. I know every employee by their
first name, inquire after their health and their family. Sometime I even
remember their wedding anniversary and wishes for them.

From afternoon till evening I take care of the administration. Nothing misses my
eyes. My business acumen has won me several accolades and laurels. In the
evenings I make it a point to spend an hour with my family. Then I go to
business dinner and club where several of my business is tied up across the
dinner table.

My two sons have joined the business. Though they respect me as their father
and they acknowledge how I have taken the business to great heights yet
somehow, they feel the entire business is dependent on a single person's
charisma. They are wondering whether to cash in on this charisma and make it
a brand image.

Can flowers and cards be sent to employees using employee file? Will this lack
my personal touch that I exude in the office? Loyalty is the catchword in the
organization. My sons feel total quality management (TQM) has to be
implemented in our organization. They need to convince me as the founder of
the company.
Questions:
1. What could be the problem/s that would initiate the implementation of
TQM? Discuss them.

27 | T Q M
 _________________________________________________________________________
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2. How will ideas be generated in the planning stage to set the stage for
TQM implementation?
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3. If you are one of my son’s/daughter’s, how will you convince me to

implement TQM?
_________________________________________________________________________
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REFERENCES:

Camillar – Serrano, Angelita, (2016) Total Quality Management. United

Books LibrarySciences & Publishing Inc. Intramuros Manila

Evans, J. R. & Lindsay W. M. (2015), Total Quality Management,

Cengage Learning Asia Pte. Ltd., Lorong Chuan, Singapore

Ramasamy, Subburaj (2012), Total Quality Management International

Edition. McGraw Hill, Inc.

28 | T Q M
http://www.in.kaizen.com

https://leanmanufacturingtools.org/

https://www.5stoday.com/what-is-5s/

https://www.intracen.org/uploadedFiles/intracenorg

http://www.makagami.info/leadership

http://www.managementstudyguide.com/

http://www.ukessay.com/kaizen

Module 3

29 | T Q M
 Total Quality Management and Planning Tools

Objectives
After reading this chapter, the student should be able to:
 Identify quality tools for planning.
 Illustrate application of each quality planning tools.
 Apply planning tools in quality problems.

INTRODUCTION
There are several basics tools of quality can be used singularly or in
tandem to investigate a process and identify areas for improvement,
although they do not all necessarily need to be used. If a process is
simple enough or the solution obvious enough any one may be all that is
needed for improvement. They provide a means for doing so based on
facts, not just personal knowledge, which of course can be tainted or
inaccurate. Ishikawa advocated teaching theses basic tools to every
member or a company as a means to making quality endemic throughout
the organization. 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

First used by Ishikawa in the 1940s, a cause and effect diagram, also
known as a fish-bone diagram is employed to identify the underlying
symptoms on a problem or “effect” as a means of finding the root cause.
The structured nature their method forces the user to consider all the
likely causes of a problem, not just the obvious ones. Through
combination of brainstorming techniques with graphical analysis it is
also useful in sorting out the complicated relationships that may, in
combination, drive the problem.

It is called cause and effect diagrams after its function and fishbone
diagram after its appearance. Its function is to identify the factors that
are causing an undesired effect (defects) for improvement action, or to
identify the factors needed to bring about a desired result (a winning
proposal). The factors are identified by people familiar with the process
involved. As a starting point, major factors could be designated using the
“four M’s”: Method, Manpower, Material, and Machinery; or the “four
P’s”: Policies, Procedures, People, and Plant. Factors can be subdivided, if
useful, and the identification of significant factors is often an
introduction to the statistical design of experiments.

In order to use cause and effect diagram as a tool, there is a needed to

first identify the problem one is trying to solve and simply write it in the
box (head of the fish) to the right. Next, he will list the major causes of
the problem on the spine of the fish. Cause are then identified during
brainstorming with a group familiar with the problem.

Once all of the possible causes are identified, they can be used to develop
an improvement plan to help resolve the identified problem. The fishbone
below identities the possible causes of late lab results:

30 | T Q M
On a fishbone diagram, the central problem, or effect, is on the far right.
Affinities, which are categories of causes, branch from the spine of the
central effect. The brainstormed causes branch from the affinities.

Source: Quality Tools, The Basic Seven pdf

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 problems.

The Pareto Principle is based upon the principle which states that 80% of
a problem is attributable to 20% of its causes, or inputs. A Pareto chart
organizes and display information in order to demonstrate the relative
importance of various problems or causes of problems. It is a vertical bar
chart with items organized in order from the highest to the lowest,
relative to a measurable effect such as frequency, cost and time.

The data in the Pareto chart may also show the largest number of
frequencies to the smallest. In figure 16, the number of product defects
in each of the listed categories is shown.

It is simple to observe how to prioritize improvements effort looking at

the number of defects from the largest to the smallest occurrences. The
most major problems stand out and can be targeted first.

Pareto chart 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.

31 | T Q M
 Source: Tools and Techniques for Process Improvement.pdf

CHECKSHEETS
Check sheets are also known as data collection sheets and tally charts.
Check sheets 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 data is collected, it becomes a graphical
representation of itself. Areas for improvement can then be identified,
either directly from the check sheet, or by 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 way. It ensures that
the information that is collected is what was asked for and that everyone
is doing it 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.

Check sheets are a simple way of gathering data so that decisions can be
based on facts, rather than anecdotal evidence. Table 8 shows a check
sheet used to determine the causes of defects in hypothetical assembly
process. It indicates that “not-to-print” is the biggest cause of defects,
and hence, a good subject for improvement. Check sheet items should be
selected to be mutually exclusive and to cover all reasonable categories.
If too many checks are made in the “other” category, a new set of
categories is needed.

HISTOGRAM
Histogram are form of bar chart. They are used to measure the frequency
distribution of data that is normally grouped together in ranges or “bins”.
Most frequently they are used to tell the different regularity of occurrence
in long list of data. For instance, in the list 2,2,3,3,3,3,4,4,5,6 the
number 3 occurs the most frequently. However, if that list comprises
several hundred data points, or more it would be difficult to ascertain the
frequency. Histograms provide an effective visual means of doing so.

32 | T Q M
Histograms shows patterns that fall within typical process conditions.
Changes in a process should trigger new collection of data.

A minimum of 50-75 data points should be collected to guarantee

sufficient number of data points have been gathered. The patterns that
are detected reveal an analysis that helps understand variation.

Source: Tools and Techniques for Process Improvement.pdf

In this example, it shows that the receptionist received the most calls
about contribution statements for that period.

One can use a histogram to evaluate the shape and central tendency of
data, and to assess whether or not the data follow a specific distribution
such as the normal distribution.

Bars represent the number of observations falling within consecutive

intervals. Because each bar represents many observations, a histogram
is most useful with a large amount of data.

CONTROL CHARTS
Dating back to work of Shewhart and Deming, there are several types of
control chart. They are practically complex statistical tools that measure
that a process changes overtime. 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 if it is erratic and therefore out of
control. Simply these charts demonstrate when data is consistent or
when there are high or low outliers in the occurrences of data.

Control chart focuses on monitoring performance overtime by looking at

the variation in data points and, distinguishes between common cause
and special cause variation. The Dow Jones Industrial Average 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, costumer
complaints, in chronological order, showing how then values change with
time. In a control chart each point is given individual significance and is

33 | T Q M
joined to its neighbor. Above and below the mean, Upper and Lower
Warning and Action lines (UWL, LWL, UAL, LAL) are drawn. These act as
signals or decisions rules, and give operators information about the
process and its state of control. The chart are useful as a historical
record of the process as it happens, and as an aid to detecting and
predicting change.

Control charts are the most complicated of the basic tools of TQM, but
are based on simple principles. the charts are made by plotting in
sequence the measured values sample taken from a process. For
example, the mean length of a sample of rods from a production line, the
number of detects in a sample of a product, the miles per gallon of
automobiles tested sequentially in a model year, and so on. These
measurements are expected to vary randomly about some mean with a
known variance. From the mean and variance, control limits can be
established.

Control limit are values that sample measurements are not expected to
exceed unless some special cause changes the process. A sample
measurement outside the control limits therefore indicates that the
process is no longer stable, and is usually reason for corrective action.

Other causes for corrective action are non-random behavior of the

measurements within the control limits. Control limits are established by
statistical methods depending on whether the measurements are of a
parameter, attribute or rate.

Source: Quality tools, the basic seven. pdf

Control charts are used to monitor the stability of processes, and can
turn time-rendered data for a particular characteristic such as product
weight or hold time at all center into a picture that easy to understand.
These charts indicate when are points out of control or unusual shifts in
a process.

34 | T Q M
SCATTER DIAGRAMS
A scatter diagram is used to identify whether there is a relationship
between two variables. It does not prove that one variable directly affects
the other, but is highly effective in confirming that a relationship exists
between the two. Variable often represent possible cause and effect.

A scatter diagram is a graphical representation of how one variable

changes with respect to another. The variables are plotted on axes at
right angles to each other and the scatter points given a measure of
confidence in any correlation shown.

They show whether two variables are related, or prove that they are not,
the type of relationship, if any, between the variables and how one
variable might be controlled, by suitably controlling the other. They also
make predictions of values lying outside the measured range.

Relationship in a Scatter Diagram

Source: Tools and Techniques for Process Improvement.pdf

As an example, a scatter diagram might show the relationship between

how satisfied volunteers are that attend orientation training. The
diagram shows the relationship between volunteer satisfaction scores
and volunteer orientation training.

FLOW CHART
A flow chart is a visual representation of a process. It is not statistical,
but is used to piece together the actual process as it is carried out, which
quite often varies from how the process owner imagines it is. Seeing it
visually makes identifying both inefficiencies and potential improvements
easier.

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

breakdowns are in work processes. Flow-charting the steps of a process
provides a picture of what the process looks like and can shed light on
issues within the process. Flowchart are also used to show changes in a
process when improvements are made or to show a new work flow
process.

35 | T Q M
 Source: Tools and Techniques for Process Improvement.pdf

A flow chart, sometimes called a process map, can be used to help the
company model its process and understand and communicate all
activities in the process the relationship within inputs and outputs in the
process, and key decision points.

A danger in flow charting is the use of assumed or desired steps rather

than actual process steps in making the chart. The utility of the chart
will correlate directly to its accuracy. Another danger is that the steps
plotted may not be under the control of the user. If the analyst does not
“own the process” the chart may not be too helpful. It may, however, be
quite useful to a process improvement team including all the functions
involved.

Source: Tools and Techniques for Process Improvement.pdf

36 | T Q M
ASSESSMENT

Direction: Read the case and answer the questions below the story.

No Reservation for Me

My husband, I and the children together with other members of the clan
from my side, traditionally go out during Eastern in a large restaurant-
hotel somewhere in Baguio. This year just like in the past, I called and
made a reservation about month before the Eastern.

Since almost half of the party comprised teenagers, they arrived 30

minute ahead earlier than the 12:00 noon agreed time of reservation.
This is to make certain that the seats are available. The front-office clerk
told them that they did not have any reservation. The clerk explained
that should those who reserved did not show up, the table will be given
to them. My husband and I were quite disappointed are I was firmed to
tell her that I reserved a month before.

The front-office clerk told them, "Well I supposed that a reservation but I
can't seat you not until all the people on the reservation list are seated.
You are welcome to go to the lounge for complimentary, coffee, and juice
while you are waiting." When I asked for the supervisor, the front-office
clerk that "He in a meeting at this moment," and she went on with her
other works. Final the whole clan was seated after an hour but everyone
was displeased with the experience.

The next morning, I wrote a letter addressed to the restaurant-hotel

manager telling the entire incident. I was enrolled in an MBA program at
the local university where I also teach total quality management (TQM)
as a Professor. In my class recently lectured about how to analyze quality
problems using different tools come up with the optimal solutions. At the
end of my letter I highlighted a statement which says that "If the hotel
truly believes about quality service, the incident t my family experienced
will not happen." The following day, I received a letter

It is nice of you to have shared your experience. We are glad to hear

from our valued customers. We wish you had experienced the level
of service and accommodations that we do with our best at our
hotel. Our restaurant-hotel manager received your letter and asked
me to take action as the Total Quality Lead.

Looking at our records, there was really no show of a reservation on

the books for your family. I have dealt with your comments
appropriately with the different departments concerned so that
others will no longer experience the same. The management
sincerely apologize for the incontinences we had caused your family.

Thank you so much once more for giving us your feedback. We

always believe in a philosophy of continuous improvement. It is
through comments from our valued customers like yours that we can
continue make improvements of our service to put guests to
satisfaction.

37 | T Q M
Questions:

1. What do you think are the problems and the underlying causes of
them in the restaurant-hotel? Use of the tools to make an analysis.

_____________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________

Place your analysis here using any quality tool:

2. What solutions will you recommended as person who believes in

quality to the restaurant-hotel? Based your suggestions on the
result of your analysis?

_____________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________

38 | T Q M
 Customer Value Strategy

OBJECTIVES:
After reading this chapter, the student should be able to:
 Differentiate between internal from external customer.
 Describe customer satisfaction and its nature.
 Define customer focus.
 Explain customer service.

INTRODUCTION
Total quality management ensures 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. In fact, organizations introduce total quality management or
any other quality management process to increase their customer base
and levels of customer satisfaction. Total quality management increases
an organization’s database of loyal customers who would not go
anywhere, no matter what. Without customers a business can’t even
exist.

IDENTIFYING CUSTOMERS
There are two distinct types of customers namely external and internal.
Internal customers are within the company. They are colleagues working
together for delivering a service or product for the external customer.
Every function, whether it is engineering, order processing, or
production, has an internal customer. Each internal customer receives a
product or service, in exchange, provides a product or service. Every
person in a process is considered a customer of the preceding operation.

An internal customer can be anyone within an organization. It could be

another department, another branch or even a co-worker. Getting the
internal relationship working is essential if external customer is to be
satisfied. Every single person in the organization has an effect on the
external customers. Internal co-operation needs to be stimulated to
enhance organizational performance. The most effective leadership style
tends to give high importance to teams and employee participation.

An external customer may be an individual or an enterprise that hires or

purchases the product(s) or service(s) from another person or business in
exchange of money. An external customer is someone who exists outside
the organization.
An external customer can be identified in many ways, such as

1. The one who use the product or service.

2. The one who purchases the product or service.
3. The one who influences the sale of the product or service.
An external customer is one who isn’t a part of an organization, is rather
is one who receives service or product from the organization. They are
the ones who pay for a service or product and can make or break an
organization. They have a choice. If a particular product or service does
not please them, they can easily find another company that offers a

39 | T Q M
better product or services. Quality must be incorporated into all activities
with a clear customer focus. Customers usually compare perceptions of
what they actually received from the organization with their expectations
(what they were expecting to get from the organization.)

One of the most important factors for the success of an enterprises it its
customers. Without them, business cannot exist. In order to capture
customers, a business must try to find out what people want, how much
and how often they will buy and how their post-purchase satisfaction will
be ensured.

CUSTOMER SATISFACTION
Customer satisfaction is not an objectively measured but more of a
feeling or attitude. It enhances customer loyalty, which is feeling of
attachment to or affection for company’s people, product or services. If a
customer is pleased with a product or a service he has hired or
purchased he will pay his bills promptly, which great improves can flow-
the lifeblood of any organization. Customers that are pleased will
increase in number, buy more, and buy more often. Through delighting
the customer satisfied customers can be turned into loyal customers.
Loyalty generates constant purchases and increased revenues, therefore
leading to organizational excellence. Employee satisfaction needed to
maintain continuous improvement and external customer satisfaction.
Delighted employees who feel proud of their work have an outstanding
performance, thus having a positive impact on business excellence.

The customer will always be the judge of quality. Understanding

customer needs, both current and future and keeping pace with
changing market require effective strategies for listening to and learning
from customers, measuring their satisfaction relative to competitors and
building relationships. Satisfaction and dissatisfaction information are
important because understanding them leads to the right improvements
that can create satisfied customers who reward the company with
loyalty.

Satisfaction can be expresses in many ways, like positive word-of-mouth,

giving compliments to the service provider and brand loyalty to the
service organization. Quite often it is assumed that satisfied consumers
will be brand loyal. That needs not be the case, especially even now
entrants have come to the satisfied customers will show a higher
repurchase rate than dissatisfactions of customers is an important one.
Customer satisfaction leads to repeat purchases and repeat purchases
lead to loyal customers. In turn, customer’s loyalty leads to enhanced
brand equity and higher profits.

On the other hand, the only measure of acceptable quality is customers

satisfaction, which takes into account both objective and subjective
interpretations of the needs and expectations of customers. If the
customer is satisfied with the products and services offered, the
organization has not only correctly interpreted customer needs and
expectations but it is also providing products and services of acceptable
quality.

Organizations defend in their customers and therefore should

understand current and future customer needs, meet customer
requirements and strive to exceed customer expectations.

40 | T Q M
Customer satisfaction is defined as the number of customers, or
percentage of total customers, whose reported experience with a firm, or
its product, or its services (ratings) exceeds specified satisfaction goals. It
is seen as a key performance indicator within business and is often part
of a Balanced Scorecard. In a competitive marketplace where business
compete for customer satisfaction is seen as a key differentiator and
increasingly has become a key element of business strategy.

Within organizations, customer satisfaction ratings can have powerful

effects. They focus employees on the importance of fulfilling customer’s
expectations. Furthermore, when these ratings dip, they warn of
problems that can affect sales and profitability. When a brand has loyal
customers, it gains positive word-of mouth marketing, which is both free
and highly effective.

Therefore, it is essential for business to effectively manage customer

satisfaction. Firms need reliable and representative measures of
satisfaction to do this.

In researching satisfaction, firms generally ask customers whether their

product or service has met or exceeded expectations. Thus, expectations
are a key factor behind satisfaction. When customers have high
expectations and the reality falls short, they will be disappointed and will
likely rate their experience as less than satisfying.

Customer delight arises when perceptions exceed expectations. External

customer satisfaction shows the extent to which the organization:

1. Uses method for determining and monitoring external customer’s

perceived quality and value.
2. Uses customer feedback to improve products/service quality.
3. Handles complaints, resolves them, and uses complaint
information for quality improvement and prevention of
reoccurrence of problems.
4. Measures performance against customer targets.
5. Compares its customer satisfaction results with that of main
competitors.
A summary of ways to improve external customer satisfaction is given
below:

1. Treat employees as the company would treat its customers- they are
valuable members of the organization and they must feel important
for the organization.
2. Share the company vision- communicating the company’s vision
with the employee will make them a part of the company. It can
help them align their goals with those company.
3. Surpass their expectations- to make employees happy, offer
unexpected gifts or bonuses, arrange team parties take them out
for a team lunch or dinner, and other ways.
4. Take feedback and suggestions- to better understand employees;
the company must know what they feel about their jobs, or work
environment.
5. Show appreciation for good work- appreciate a good work done.
Customer Satisfaction Methods

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

41 | T Q M
 1. Encouraging face-to face dealing 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 it can be a pretty
threatening experience. Certainly, though, it does get easier over
time. It’s important to meet the customers face to face at least once
or even twice in the course of project. In doing so, the client finds it
easier to relate to and work with someone they’ve actually met in
person, rather than a voice on the phone or someone typing into
an email or messenger program. When one do meet them, be calm,
confident and above all, take time to ask them what they need.
2. Respond to message promptly and keep the clients informed- this
goes without saying really. All people knowhow annoying it is to
wait days for a response to an email or phone call. It might now
always be practical to deal with all customers’ 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 is as soon as possible. Even if one is not able to solve a
problem right away, let the customer know he is working on it,
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. It
happens to all of us. It’s vital that one keep a clear head, respond
to ones client’s wishes as best he can, and at all times remain
polite and courteous.
4. Have a clearly-defined customer service policy- this may not too
important when one is just starting out, but a clearly defined
customer service policy is going to save a lot of time and effort in
the long run. If a customer has a problem, what should they do? If
the first option doesn’t work, then what? Should they contact
different people for billing and technical enquiries? If they’re not
satisfied with any aspect of customer service, who should they tell?

Approaches of Customer Satisfaction

Here are some 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- this is done to understand customers better. This
can be done through sampling a few customers using appropriate
sampling techniques and 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 the
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 service is performing.
6. Front line personnel- this is the use of employees who are in direct
contact with customers to understand the customer’s expectations.
These employees should be trained on how to carry out this task.

42 | T Q M
 7. Critical incidents technique- this attempts to identify issues that
delight the customer and those satisfy them.

Determinants of Customer Satisfaction

There are two key indicators of customer satisfaction, namely;
1. Key Indicators for Physical Products
a. Reliability
b. Aesthetics
c. Adaptability
d. Usability
e. Functionality
f. Appropriateness
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
h. Honestly and an ability to communicate in clear language

CUSTOMER FOCUS
Whatever companies do for quality improvement, it must always be
remembered that only customers determine the level of quality. Whatever
they do to foster quality improvement such as training employees and
integrating quality into processes management, only customers
determine whether their efforts are worthwhile.
The customers are the valuable assets for any organization. The success
of an organization depends on 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 expectations is the key to satisfy the
customer.

Focusing on the customer involves designing products or services that

meet or exceed the customer’s expectation. This involves the product
itself, its functionality, attributes, convenience and even the means by
which the information about a product is received by a client.

The marketing department is responsible to get the cyber-word out to

potential clients. Marketers use a wide variety of media sources, like
social networking, email and even texting. If they notice traffic is not
moving toward the website or that clients are not staying online long
enough, they will make strong suggestions to be IT department and the
research and development department to make changes immediately.

By having a strategic approach to improvement, processes are developed

and tested to ensure the product or service’s quality. This also involves
making sure suppliers offer quality supplies needed to produce products.

The purchasing department monitors client reviews to determine whether

the ratings on the website are similar to those of actual past customers.
This makes it possible for purchasing to add more travel packages to the
company’s inventory.

43 | T Q M
Improving continuously means always analyzing the way work is being
performed to determine if more effective or efficient ways are possible,
making improvements and striving for excellence all the time.

The human resources department is interested in making sure

employees are qualified to perform their jobs. By having qualified and
trained employees on the team, the website will run effectively. Calls to
the travel desk will be handled efficiently. Any interruption to the
booking process will be quickly fixed, and improvements will be made.

Encouraging mutual respect and teamwork is important because it foster

a single-organizational culture of excellence by knowing that every
employee from top to bottom of the hierarchy hold the same TQM core
principles at heart.

CUSTOMER SERVICE
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 protection the organization.
To make sure customer service achieves goals in business, the person
responsible for quality assurance must define the quality functions as
they apply to how the company serves its customers. Once such
definitions are in place, it can define the resources required to fulfill the
defined mandate and make sure customers experience quality service.

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. The company can define quality assurance in
customer service as a means to evaluate the characteristics that make
customer service effective.

Reliability
The quality assurance system can compare what the company premises
the customer to what the customer expects and what the customer
service delivers. If the delivered service matches customer service
element is high. If there are gaps, it can use the quality assurance
system to track improvements. The quality assurance system must
survey customer regularly to determine their expectations so the system
can match against promises and deliveries. Businesses usually
implement such surveys in-house by asking customers to rate their
service when they call or when they complete a purchase. Email or web-
based forms that customer fill out when visiting the company website are
alternatives. For use as a gauge of reliability, the survey must specifically
ask how well the company service met the customer’s expectations.

Competence
Customer expect competent delivery of their services, and the definition
of quality assurance includes tracking competence. Quality assurance
system evaluate competence by training and results. The employee
delivering customer service has to have the training that allow as
competent delivery, and he actually has to supply competent service. The
quality assurance system keeps records of training and surveys
customers to evaluate the competence of the delivery. It assigns scores
for completed training and for the degree of competence in service
44 | T Q M
delivery compared to benchmarks based on industry standards. It adds
these scores to obtain an overall competency evaluation. A low score
means employees have less training or apply their training less
competently than the rest of the industry. The company can address
such a problem through additional training.

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. Wait times, busy signals,
noise, call quality and call cost reduce the quality of delivery. The
definition of quality assurance includes tracking these parameters,
defining reasonable levels and ensuring that those levels are maintained
over time.

Solutions
Customers are mainly interested in solutions 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. The quality assurance system compares high
levels of reliability, competence and delivery quality with the level of
customer satisfaction. The system checks for discrepancies.

ASSESSMENT

Direction: Read the case and answer the questions below the story

Tardy Professional
http://www.marketmanila.com/

If there is one thing that will curdle my blood, it is unprofessional behavior by

supposed professionals. And yes, I consider excessive and unexcused lateness
(or a no-show) to be HIGHLY UNPROFESSIONAL. I know, I know, Filipinos
supposedly have a Latin (or is it a Malayan?) propensity for being tardy, but I
would argue vehemently that it isn’t genetic, rather something learned,
tolerated and eventually, habitual.

More than two weeks ago I made an appointment to see my urologist on

Saturday, July 6 at 10am. My grandfather had prostate cancer, my father died
of it and numerous uncles, cousins and a sibling have had prostate cancer as
well. Suffice it to say it’s in the genes, and I have a very high probability of
getting it… Dad had his first prostate exam in his late 60’s and that was far too
late… I distinctly remember that day. We had lunch and he proudly announced
he was going for his first “digital exam” and he was quite impressed with
technology those days. Hours later he showed up at our home, stuck his middle
finger out and pointed it at Mrs. MM and indignantly declared “DID YOU KNOW
THIS IS CALLED A DIGIT?!?” Whoa, did he have a rude afternoon surprise or
what? :) On my 40th birthday, I vowed to get regular medical check-ups to
avoid the worst surprises. I found myself a reputable doctor, did the required
exams every few years, and in-between got blood tests for PSA readings. So far,
so good…

Saturday morning I headed to the hospital at 9am, to bring the Teen to a

different medical appointment. My Chief of Stuff headed over to the urologist to
tell them I was in the hospital and he signed me up at 9:45am, already number
“6” on the list of folks told to show up at 10am (what is the use of an
APPOINTMENT time if a dozen people are told to show up at the exact same
time?). At 9:50am, I showed up at the urologist’s office and was told to wait

45 | T Q M
outside. The doctor hadn’t arrived yet. Several other patients were waiting,
including one elderly man who arrived in a wheelchair, and he sat beside me.
10:15 comes along and not a single patient has been summoned. 10:30 and we
are all still waiting. Apparently the doctor isn’t there yet. 10:45 am and still no
advice. Now there are 8-10 people who have travelled to the hospital from near
and far, who have waited patiently for 60-80minutes long and there is still no
doctor in sight. At this point, there is already an estimated 700 or so minutes in
wasted patient time, the equivalent of 1.5 man days of work! If the average
patient valued THEIR time at say just PHP500 per hour, that would already be
PHP6,000 in wasted time. Double that cost and we are up to PHP12,000 in lost
value, lost time, and mounting irritation. Some folks, perhaps like the doctor,
might value their time at say PHP8,000 an hour (if they charge PHP800 per
person and see a 10 folks per hour) and if that were true, then we are talking
PHP80,000+ in wasted time value…

At roughly 10:49, the doctor’s secretary emerges from her office to announce
that the doctor would be late (DUH?!), and that he wasn’t expecting to get in
before 11:30am, and that was not certain either. Would the 10 patients be
willing to wait that long? F#@!&%$ ABSURD. For a 10 am appointment, she
was now asking all of us if we would wait until AT LEAST 11:30, and since I
was number 6 on the list, I would most likely be seen at say 12:15 or later,
assuming he arrived. I told her this was TOTALLY UNPROFESSIONAL and
asked her WHY he was late, and she answered “kasi traffic eh, he’s still in
Greenhills…” to which I BLEW A GASKET. I would understand if he was held
up in an operating room, or if he stopped to save a car accident victim, or if a
previous patient tried to blow up his car with a stick of dynamite … but to be
told that he was simply “stuck in traffic” at 10:50am many kilometers from the
hospital when he should have been at his desk at 9:45am is really begging for a
rant. The elderly gentleman beside me, heaved a heavy sigh of frustration. He
said he waited THREE HOURS the day before and the doctor NEVER EVEN
SHOWED UP. He had waited 1.5 hours today and he left, limping, with the aid
of a cane, clearly disgusted. Note that 10 patients, some of whom were from the
North where the doctor was driving in from, all managed to get to the hospital
before 10am, while he was 1.5+ hours late. Of course, the doctor was leaving on
a foreign trip the next day, so if you didn’t suffer the wait today, they couldn’t
reschedule a missed appointment for a couple more weeks… And there was no
guarantee he would show up then, either!!!

I told the secretary that I wouldn’t wait, and I would also never come back and
would find another doctor instead. I asked her to write on his paper that I had
indeed arrived before the appointed time, and that they waited nearly one hour
before advising patients he would be yet another 45 minutes late or more, and I
asked that she write the reason for the delay and sign it with her name. Of
course she plain outright LIED. She refused to write that she informed us of the
delay at 10:50 or so, and instead of writing “traffic” as she had said in front of
several patients, wrote “because of an unfortunate event.” Not only was the
doctor acting in a totally unprofessional manner, what should have been the
hapless secretary in the middle, decided instead to add fuel to the fire. Stupid,
stupid, stupid.

The doctor, was, in my opinion, simply unprofessional. Ideally, he should have

exerted every effort to get to his office on time. He had paying and some SICK
patients waiting for him. If he couldn’t arrive close to the appointed time, say
within 15 minutes or so, he could have EASILY called his secretary ahead so
she could then advise patients by text or phone that the doctor would be late
and they could try and use the time a bit more productively. The doctor was
simply arrogant if he thought that wasting a good 1.5-2.5 hours of 8-10
patients time was acceptable behavior, almost regardless of WHATEVER he was
doing during that time. A professional, thoughtful, well-mannered person would
only HAVE TO CALL to let folks waiting know what was going on. Expecting
them to wait for him for several hours is poor form, period. Like I said earlier,

46 | T Q M
an unforseen medical emergency might be an acceptable excuse, but not
informing his office while 10 clients sat waiting, is simply inexcusable, in my
opinion.

I personally consider chronic lateness (particularly in a professional setting

such as a doctor’s office) to be the ultimate sign of arrogance and self-
centeredness. It is disrespectful, displays a complete lack of manners and
wastes an incredible amount of time/effort. Yes, it is a pet peeve. Professionals
should show up on time, particularly when you have made appointments weeks
in advance and customers are paying for the service. I try never to return to a
professional who doesn’t have the basic ability to show up for an appointment
on time. In this case, the doctor in question lost several clients that day, and
probably permanently. Did he care? Probably not. Another sign he was lacking
in the professionalism department… Neither he nor his secretary bothered to
call the patients who left in disgust to try and re-schedule their appointments,
or simply to apologize for the hours they were forced to wait for the doctor to
arrive. I will NEVER go back to this particular doctor and I will tell everyone I
know to avoid him like the plague. If more people stuck their middle fingers at
twerps like this, the less of them we would have to tolerate in future. Hospital
administrators should police their own ranks and get rid of bad apples that
spoil the rest of the bunch. As much as possible, I am taking my business to
another hospital from now on. Isn’t it amazing that in thousands of flights I
have taken in my lifetime, not once has a delay been blamed on a pilot not
showing up on time. Nor have I been to a major sporting event like a boxing
match, tennis final, NBA game, NFL match that started more than a few
minutes late because the pros were stuck in traffic. And yet I have run into
several doctors who thought they were so important and valuable that they
regularly forced patients to wait excessive amounts of time just to pay for their
consultations with the doctor…

On a brighter note, I have noticed that this kind of arrogant doctor behavior is
not necessarily the norm at Makati Medical Center… in recent months,
appointments our family members have had at OB doctors, dermatologists,
cardiologists and pulmonary specialists have all been done on an appointment
basis, with minimal waiting time, and the doctors have all shown up. They are
far more patient-centric and I hope these types of doctors flourish in future. I
fully understand that patients can also be no-shows, and just as I would be
livid if a doctor didn’t bother to show up, so should patients be charged if they
made an appointment and didn’t cancel out beforehand.

Questions:

1. Why is the author not satisfied with the service of the hospital?
Is this bad behavior the norm of the hospital? Discuss

2. How should any doctor maintain quality service with his

patients? Detail your discussion.

3. Do you think the hospital lacks customer focus the reason why
this doctor is behaving this way? Or the doctor is just an
isolated case? Defend your answer.

Quality Standards
47 | T Q M
OBJECTIVES:
After reading this chapter, the student should be able to:
 Recognize the quality using Malcolm Baldrige and International
Organization for Standardization (ISO)
 Differentiate between quality standards of Malcolm Baldrige and
International Organization (ISO)

INTRODUCTION
In essence, a standard is an agreed way of doing something. It could be
about making 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
standard can be barriers to trade, giving some organizations advantages
in certain areas of the world. Standards provide clear identifiable
references that are recognized internationally and encourage fair
competition in free-market economies. Standard facilitate trade through
enhanced product quality and reliability, greater interoperability and
compatibility, greater ease of maintenance and reduced costs.

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

MALCOLM BALDRIGE
The Malcolm Baldrige Award is a United States quality award that covers
an extensive list criterion evaluated by independent judges. In many
cases organizations use the Baldrige criteria for their internal quality
efforts rather than competing directly for the award.

History of Malcolm Baldrige Award

In October 1982 due to declining of 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
them 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 un 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
law (Public Law 100-107). The name of the award was taken after the
Secretary of Commerce under Reagan administration. Malcolm Baldrige
was killed in an accidentally shortly prior to the action of the Senate to
the legislation. Baldrige, a highly respected man by world leader 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

48 | T Q M
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 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.
2. Distinguish the accomplishment of those firms that made quality
improvements of their goods and services and become an example
for the rest.
3. Create guidelines and standards 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.
Excellence in quality management practice and performance by US firms
are recognized by the Baldrige Award. The award however, does not exist
plainly to recognized excellence in product nor for the sake of winning.
The main focus of the award is to encourage high-performance
management practices that lead to satisfied customer and good business
outcomes. The awards grouped into several categories such as
manufacturing, small business, service, nonprofit health care and non-
profit organizations.

Criteria to Become Awardees

The evaluation for the award consists of a meticulous set of criteria
named Criteria for Performance Excellence with the intention to
persuade firms to enhance their competitiveness using an aligned
approach to organizational performance management with the following
outcomes:
1. Delivery of increasingly improving vale, adding to market place
success
2. Enhancement of the general company performance and
capabilities
3. Learning on organization personal level
The criteria to address are categorized as:

1. Leadership- examines how senior executives guide the organization

and how the organization addresses its responsibilities to the
public and practices good citizenship.
2. Strategic planning- examines how the organization sets strategic
directions and how it determines key action plans.
3. Customer focus- examine how the organization determines
requirements and expectations of customers and markets; build
relationships with customers; and acquires, satisfies, and retains
customer.
4. Measurement, analysis, and knowledge management- examines the
management, effective use, analysis, and improvement of data
information to support key organization processes and the
organization’s performance management system.

49 | T Q M
 5. Workforce focus- examines how the organization enables its
workforce to develop its full potential and how the workforce is
aligned with the organization’s objectives.
6. Process management- examines aspects of how key
production/delivery and support processes are designed, managed,
and improved.
7. Results- examines the organization’s performance and
improvement in its key business areas customer satisfaction,
financial and marketplace performance, human resources,
supplier and partner performance, operational performance, and
governance and social responsibility. The category also examines
how the organization performs relative to competitors.
The seven categories form an umbrella of an integrated management
system which reflects the concentration of organizations towards
customers using their strategy and actions. The leadership triad
consisting of leadership, strategic, planning and customer and market
focus must be integrated. Human resource focus and process
management the manner the organizations perform their works to
attain business results. The entire framework is provided with fact-
based system for improvement as supported by measurement,
analysis and knowledge management.

Evaluation Process

The scoring of responses to Criteria Items and Award applicant

feedback are based on two evaluation dimensions namely process and
results. Criteria users need to furnish information relating to these
dimensions. The specific factors for process are approach,
deployment, learning and integration, are described below.

1. Approach refers to the methods used by an organization to address

the Baldrige Criteria Item requirements in Categories 1-6 feature
include:
a. Appropriateness of the methods to the Item requirements
b. Effectiveness of your use of the methods
c. Use a systematic approach
d. Innovation
Questions to be asked in analyzing an approach are the following:

a. What approach or collection of approaches is discussed?

b. What areas of the Criteria Item does the approach address?
c. Is the approach systematic (with repeatable steps, inputs, outputs,
and timeframes; designed to allow evaluation, improvements, and
sharing)?
d. Is there evidence that the approach is effective?
e. Is the approach (collection of approaches) a key organizational
process? Is the approach important to the applicant’s overall
performance? (if yes, clearly state why it is important, and cite the
key factors used to support your position.)
f. Are any of the multiple requirements of the Item that are not
addressed (gaps) relevant and important to the applicant?
2. Deployment refers to the extent to which an approach is applied in
addressing the requirement of the Baldrige Criteria Item.
Deployment is evaluated on the basis of the breadth and depth of
application of approach to relevant work units throughout the
organization. Features included are the following:

50 | T Q M
 a. Relevance
b. Complete coverage
c. Consistency
d. Breadth across all work units
e. Depth through multiple levels
Questions to be asked in analyzing deployment are the following:

a. What information is provided to show what is done different parts

of the organization (early stages, well deployed but with some
variation among areas/ work units, well deployed with no
significant gaps, fully developed)?
3. Learning refers to new knowledge or skills acquired through
evaluation, study, experience, and innovation. Organizational
learning is achieved through research and development, evaluation
and improvement cycles, ideas and input from employees,
customer ideas and input, faculty, staff, students, patients, and
other stakeholders; best practice sharing; and benchmarking.
Personal learning (for employees, faculty and staff) is achieved
through education, training, and developmental opportunities. To
be effective, these types of learning should be embedded in the way
an organization operates.
Features included are the following:
a. Organizational learning and personal learning
b. Embedded in operations
Questions to be asked in analyzing learning:

a. Has the approach been evaluated and improved? If yes, is the

evaluation and improvement conducted in a fact-based, systematic
manner (e.g, regular, recurring, data driven)?
b. Is there evidence of organizational learning (i.e. evidence that the
learning from this approach shared with other organizational
units/other work processes)? Is there evidence of innovation and
refinement from organizational analysis and sharing (e.g, evidence
the learning is actually used to drive innovation and refinement)?
c. Are the measures, information, improvement system
complementary across processes and work units?

4. Integration refers to the harmonization of plans, processes,

information, resource decisions, actions, results, and analysis to
support key organization-wide goals. Effective integration goes
beyond alignment and is achieved when the individual components
of a performance management system operate as a fully
interconnected unit. Features are the following:
a. Begins with alignment
b. Culminates in interconnectivity
Questions to be asked in analyzing integration:

a. How will is the approach aligned with the applicant’s

organizational need identified in the other Criteria items and the
Organizational Profile? How well is the approach integrated with
these needs? (examples of needs are strategic challenges,
objectives, and related action plans: organizational mission, vision,
and goals; key processes and measures; key customer/market
segments and requirements; and employee groups and
requirements.)

51 | T Q M
ISO STANDARDS
The International Organization for Standardization (ISO)is an
international standard-setting body composed of representatives from
various national standards organizations. Founded on 23 February
1947, the organization promotes worldwide proprietary, industrial and
commercial standards.
ISO International Standards ensure that products and services are safe,
reliable and of good quality. For business, they are good strategic tools
that reduce costs by minimizing waste and errors, and increasing
productivity. They help companies to access new markets level the
playing field for developing countries and facilitate free and fair global
trade

History of ISO
In London in 1946 ,65 delegates from 25 countries meet to discuss the
future of International Standardization. In 1947, ISO officially comes into
existence with 67 technical committees (groups of experts focusing on a
specific subject). 1949, ISO moves into offices in a small, private house
in Geneva. In early 1950s the Central Secretarial has 5 members of staff.
In 1951, the first ISO standard (cancelled Recommendations at this
time), ISO/R 1:1951 Standard reference temperature for industrial
length measurements, is published. since then, the standard has been
updated numerous times and is now ISO 1:2002 Geometrical Product
Specifications (GPS) – Standard reference temperature for geometrical
product specification.

Since its creation ISO has published monthly information about its
technical committees, the standards published and administrative
changes to be the organization and its members.

In 1995, ISO members gather in Stockholm for the 3 rd General Assembly.

At the beginning of 1955, ISO has 35 members and 68 standards (called
recommendations). Henry St. Leger is the Secretary General.

In 1960, ISO publishes the standard ISO 31on quantities and units
(which has since been replaced by ISO 80 000) ISO 31 is based on SI
(Systeme international of unites). The SI sets out one unit for each
quantity, for example, the meter for distance and the second time. the
objective of the SI system is to reach worldwide uniformity in units of
measurement. ISO 80 000 sets out these units how to use them.

During the 1960s ISO works to include more developing countries in its
International Standardization work. In 1961 it establishes DEVCO, a
committee for developing country matters, and 1968 introduces
Correspondent membership. This allow developing countries to be
informed of International Standardization work without the full costs of
ISO membership. Corresponds membership continues to be popular
option for many countries today. At the start of 2012, ISO had 49
correspondent members. Learn more about ISO and developing
countries.

In 1968, ISO publishes its first standard on freight containers. Freight

and packaging is one of the areas where ISO has been particularly
active, changing the way goods travel across the world. In 1969 Olle
Sturen becomes Secretary General of ISO. In one of his first speeches
he says International Standardization is the end of “technical
nationalism”.

52 | T Q M
In 1971, ISO creates its first two technical committees in the
environmental field: Air quality and water quality. Today these
committees have been joined by other groups of environmental
experts focusing on many subjects including soil quality,
environmental management and renewable energy. During the 1970s
ISO Secretary General Olle Sturen focuses on turning ISO into a truly
international organization.

While ISO’s members come from all over the world, in early 1970s
relatively few are fully active in development of International
Standards. Sturen’s visits to member result in active participation
from countries such as Australia, Japan and China. The Central
Secretariat also reflects this international feel, with an average of 25
nationalities represented.

In 1986, Lawrence D. Eicher takes over as Secretary General. Sadly,

Eicher passed away in 2002 while still serving as ISO Secretary
General. The Lawrence D. Eicher award for excellence in
standardization has been set up in his memory.

In 1987, ISO publishes its first quality management standard in the

80 900 family have gone on to be become some of the most well
known and best willing standards.

In 1995, ISO launches its first website. Five year later, in 2002, ISO
start selling in standardsonline.in 1996, ISO launches its
environmental management system standard, ISO 14001. The
standard provides tools for companies and organizations to help them
identify and control their environmental impact.

In 2003, Alan Brylen is appointed Secretary General. Under his 5 year

term, 50 expands its work to cover new technologies such as
nanotechnology and Brylen also actively supports ISO’s work on
social responsibility, which tends to the launch of ISO 26000 in 2010.

In 2005, ISO and IEC’s joint technical committee JTCI launches

ISO/IEC 27001, a management system standard on information
security. As businesses become increasingly reliant on information
technology, securing the system and minimizing risk is ever more
important. ISO 270012005 has become one of ISO’s most important
popular standards.

In 2007, ISO moves to its current in La Voie Creuse, Geneva. Today

the Central Secretariat employs almost 150 people, a significant
increase from the staff of 5 in the early 1950s.

In 2008, ISO, ITU and IEC are congratulated with an EMMY Award for
their wirk in producing an advanced video coding standard.

In 2009, ISO’s current Secretary General Rob Steele is appointed. ISO

takes on a new mission to be simpler, faster, better-to cut down
standards development time and to better serve the needs of today’s
society.

In 2010, ISO 26000, the International Standard providing guidelines

for social responsibility, is launched. The working group that
developed ISO 26000 is one of the largest and most diverse groups to
develop an ISO standard. The resulting documents is truly multi-
stakeholder.
53 | T Q M
 At the start of 2012, ISO has 163 members and has a total of over
19,000 standards. Today, ISO International Standards cover almost
all aspects of technology and business.

Different Types of ISO

The International Organization for Standardization (ISO) is non-
governmental network of national agencies whose purpose is the
development of international standards for business and government.
International standards are designed for trade between countries. they
provide a technological base and a system of best management practices.
Standards ensures safe products and organizational procedures that
reduce environmental impact. Standards benefit trade and business by
simplifying procedures and reducing an organization’s environmental
risk. Consumers benefit by the knowledge that state-of-the-art practices
are developed for global relevancy.

Quality Management

The ISO 9000 family addresses various aspects of quality

management and contains some ISO’s best known standards. The
standards provide guidance and tools for companies and
organizations who want to ensure that their products and services
consistently meet customer’s requirements, and that quality is
consistently improved.

Standards in the ISO 9000 family include:

ISO 9001:2015-sets out the requirements of a quality management

ISO 9000:2015- covers the basic concepts and language

ISO 9004:2009- focuses on how to make a quality management

system more efficient and effective

ISO 19011:2011- sets out guidance on internal and external audits of

quality management system.

ISO 9001:2015. This ISO sets out the criteria for a quality
management system and is the only standard in the family that can
be certified to (although this is not a requirement). It can be used by
any organization, large or small regardless of its field of activity. In
fact, there are over one million companies and organizations in over
170 countries certified to ISO 9001. This standard is based on a
number of quality management principles including a strong
customer focus, the motivation improvement. Using ISO 9001-2015
helps ensure that customers get consistent, good quality products
and services, which in turn brings many business benefits.

Environmental Management

ISO 14001:2004. This ISO standard is the bases of development of an

environmental management system (EMS). An EMS is a set of
guidelines of and procedures developed by an organization to ensure
compliance. An EMS benefits an organization by increasing
environmental awareness and investigating ways to reduce its costs.

54 | T Q M
ISO 14001:2001. This ISO standard provides more specific
information for implementation and maintenance of an EMS, with the
aim to continually improve the plan based on its performance. The
standard is applicable to any industry.

ISO 5001. This yet-to-be released will address energy management

and ways to increase energy efficiency and reduce environmental
impact of organizations. It will consider technical and topical issues,
such as climate change and dependence on foreign oil.

Health and Safety

ISO 22000. This ISO standard sets global guidelines for food safety
and handling major corporations have embraced this standard,
including Arla Foods and Kraft Foods. Its aims is to focus on the
entire food chain and reduce hazards and safety issues such as food-
borne illnesses.

IWA 1-2005. This standard addresses issues in the healthcare sector.

It provides guidelines for health care organizations to respond to
natural and manmade disasters. Specifically, the standard gives
recommendation for reducing error and organizational waste, while
embracing a customer-centric framework.

ISO 9001-2000. This standard address quality management in the

medical device industry. It specifically provides suggestions and
guidelines for industries involved in the development, production, and
installation of these devices. The standard also considers continual
monitoring within the industry.

Transportation

ISO/TS 16949.this standard review all areas of the automotive

industry supply chain. It concentrates on areas of training,
monitoring, analyzing and improvements within the industry. The
standard also focuses on ways for suppliers to reduce their costs and
improve efficiency.

ISO/PAS 3003:2008. This standard looks at specific concerns within

shipping and marine technology. It focuses on areas, such as ship
recycling management and other material handling, that can have
potential environmental impacts. It addresses industry-specific
concerns such as hazardous materials and asbestos emission.

Social Responsibility

ISO 2600. This standard assures that business and organization do

not operate in a vacuum. Their relationship to the society and
environment in which they operate is a critical factor in their ability to
continue to operate effectively. It is also increasingly being used as a
measure of their overall performance. ISO 2600 provides guidance on
how businesses and organizations can operate in a socially
responsible way. This means acting in an ethical and transparent way
that contributes to the health and welfare of society.

ISO 2600-2020. This standard provides guidance rather than

requirement, so it cannot be certified to unlike some other well-known
ISO standards. Instead, it helps clarify what social responsibility is,
helps businesses and organizations translate principles into effective

55 | T Q M
 actions and shares best practices relating to social responsibility,
globally.it is aimed at all types of organizations regardless of their
activity, size or location. The standard was launched in2010 following
five years of negotiations between many different stake holders across
the world. Representatives from government, NGOs, industry,
consumer groups and labor organizations around the world were
involved in its development, which means it represent an
international consensus.

Energy Management
• ISO 3001. Using energy efficiently helps organization save money
as well as helping to conserve resources and tackle climate change.
ISO 5001 supports organizations in all sectors to use energy more
efficiently, through the development of an energy management
system (EnMS)
• ISO 5001:2011. This is based on the management system model
continual improvement also used for other well-known standards
such as ISO 9001 or ISO 14001. This makes it easier for
organizations to integrate energy management into their overall
efforts to improve quality and environmental management. ISO
50001-2011 provides a framework of requirements for
organizations to:
1. Develop a policy for more efficient use energy
2. Fix targets and objectives to meet the policy
3. Use data to better understand and make decisions about energy
use
4. Measure the results
5. Review how well the policy works, and
6. Continually improve energy management.
Risk Management
ISO 3100. This standard is about the risk affecting organizations that
can have consequences in terms of economic performance and
professional reputation, as well as environmental, safety and social
outcomes. Therefore, managing risk effectively helps organizations to
perform well in an environment full of uncertainly.
ISO 31000:2009. This standard offers principles and guidelines, provides
principles framework and a process for managing risk. It can be used by
any organization regardless of its size, activity or sector. Using ISO
31000 can help organizations increase the likelihood of achieving
objectives, improve the identification of opportunities and threats and
effectively allocate and use resources for risk treatment.

However, ISO 31000 cannot be used for certification purposes, but does
provide guidance for internal or external audit programmes.
Organizations using it can compare their risk management practices
with an internationally recognized benchmark, providing sound
principles for effective management and corporate governance.

First Safety Management

ISO 22000. The ISO 22000 family of International Standards addresses
food safety management. The consequences of unsafe food can be
serious and ISO’s food unity management standards help organization
identify and control food safety hazard. As many of today’s food products
repeatedly cross-national boundaries.

56 | T Q M
International Standards are needed to ensure the safety of the global
food supply chain. The ISO 22000 family contains a number of
standards each focusing on different aspects of food safety management.

ISO 22000:2005 contains the overall guidelines for food safety

management.

ISO 22004:2014 provides generic advice on the application of ISO 22000

ISO 22005:2007 focuses on trace ability in the feed and food chain

ISO/TS 22002-1:2009 contains specific prerequisites for food

manufacturing

ISO/TS 22002-2:2013 contains specific prerequisites for catering

ISO/TS 22002-3:2011 contains specific prerequisites for farming

ISO/TS 22002-4:2013 contains specific prerequisites for food packaging

manufacturing

ISO/TS 22000-2013 provides guidelines for audit and certification bodies

ISO 22000-2002. This sets out the requirements for a food safety
management system and can be certified to. It maps out what an
organization needs to do to demonstrate its ability to control food safety
hazards in order to ensure that food is safe. It can be used by any
organization regardless of its size or position in the food chain.

Information Security Management

• ISO/IEC 27001. The ISO 27000 family of standards helps

organizations keep information assets secure.
• Using this family of standards will help the organization manage
the security of assets such as financial information, intellectual
property, employee details or information entrusted to you by third
parties.
• ISO/IEC 27001is the best-known standard in the family providing
requirements for an information security management system
(ISMS). An ISMS is a systematic approach to managing sensitive
company information so that it remains secure. It includes people,
processes and IT systems of applying a risk management process.
It can help small, medium and large businesses in any sector keep
information assets secure.

Occupational Health and Safety

• ISO 45001. Over 6300 people die each day from work-related
accidents or diseases- that’s nearly 2.3 million every year. The
burden of occupational injuries and diseases is significant, both
for employers and the wider economy, resulting in losses from
early retirements, staff absence and rising insurance premiums. To
combat the problem, ISO is developing a new standard, ISO 45001
Occupational health and safety management systems. The
requirements here will help organizations reduce this burden by
providing a framework to improve employee safety, reduce
workplace risks and create better, safer working conditions, all
over the world. The standard is currently being developed by a
committee of occupational health and safety experts, and will

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 follow other generic management system approaches such as ISO
14001 and ISO 9001.

Anti- Bribery Management Systems: ISO 37001.

 Bribery is one of the world’s most destructive and challenging
issues. With over US$ 1 trillion paid in bribes each year, the
consequences are catastrophic, reducing quality of life, increasing
poverty and eroding public trust. Yet despite efforts on national
and international levels to tackle bribery, it remains a significant
issue. Recognizing this, ISO is currently developing a new standard
to help organizations fight bribery and promote an ethical business
culture.
 This is the future anti-bribery management systems, specifies a
series of measures to help organizations prevent detect and
address bribery. These include adopting an anti-bribery policy,
appointing a person to oversee anti-bribery compliance, training,
risk assessment and due diligence on projects and business
associates, implementing financial and commercial controls, and
instituting reporting and investigation procedures.
 It can be used by any organization, large or small, whether it be in
the public, private or voluntary sector, and in any country. It is a
flexible tool, which can be adapted according to the size and
nature of the organization and the bribery risk it faces.

Medical Devices ISO 13485.

 Safety and quality are non-negotiable in the medical devices
industry. Regulatory requirements are increasingly stringent
throughout every step of a product’s life cycle, including service
and delivery. more and more, organizations in the industry are
expected to demonstrate their quality management processes and
ensure best practice in everything they do. Requirements for
regulatory purposes, is an internationally agreed standard that
sets out the requirements for a quality management system
specific to the medical devices industry. A medical device is a
product, such as an instrument, machine, implant or in vitro
reagent that is intended for use in the diagnosis, prevention and
treatment of diseases or other medical conditions.
 ISO 13485 is designed to be used by an organization involved in
the design, production, installation and servicing of medical
devices and related services.it can also be used by internal and
external parties, such as certification bodies, to help them with
their auditing processes.

REFERENCES:

Camillar – Serrano, Angelita, (2016) Total Quality Management. United

Books LibrarySciences & Publishing Inc. Intramuros Manila

Evans, J. R. & Lindsay W. M. (2015), Total Quality Management,

Cengage Learning Asia Pte. Ltd., Lorong Chuan, Singapore

Ramasamy, Subburaj (2012), Total Quality Management International

Edition. McGraw Hill, Inc.

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