C215 - Operations Management Study
Guide
Chapter 5
What is the total quality management philosophy?
(Chapter Topic & Page Number: The Philosophy of TQM, 143-154; see also Table 5.3)
Total quality management focuses on the root causes of quality issues and correcting them
before they become issues. TQM expects to deliver products that meet customers expectations
as well as continuously improves on them.
What are the five definitions of quality?
(Chapter Topic & Page Number: Defining Quality, 135-136)
1. Conformance to specifications
How well a product or service meets the targets and tolerances determined by its
designers.
2. Fitness for use
A definition of quality that evaluates how well the product performs for its intended use.
3. Value for price paid
Quality defined in terms of product or service usefulness for the price paid.
4. Support services
Quality defined in terms of the support provided after the product or service is
purchased.
5. Psychological criteria
A way of defining quality that focuses on judgmental evaluations of what constitutes
product or service excellence.
,What are the differences of quality between Manufacturing and Service
organizations?
(Chapter Topic & Page Number: Differences between Manufacturing and Service Organizations,
136-137; see also Table 5.1)
Manufacturing Organizations Service Organizations
Conformance to Specifications Intangible factors
Performance Consistency
Reliability Responsiveness to Customers Needs
Features Courtesy / Friendliness
Durability Timeliness / Promptness
Serviceability Atmosphere
What are the different quality standards outlined in the text and what does each
represent? (Chapter Topic & Page Number: Quality Awards and Standards, 154-156)
1. Leadership
Examiners consider commitment by top management, their effort to create an
organizational climate devoted to quality, and their active involvement in promoting
quality. They also consider the firm’s orientation toward meeting customer needs and
desires, as well as those of the community and society as a whole.
2. Strategic Planning
The examiners look for a strategic plan that has high-quality goals and specific methods
for implementation
3. Customer & Market Focus
Addresses how the company collects market and customer information. Successful
companies should use a variety of tools toward this end, such as market surveys and
focus groups. The company then needs to demonstrate how it acts on this information
4. Information & Analysis
Examiners evaluate how the company obtains data and how it acts on the information.
The company needs to demonstrate how the information is shared within the company
as well as with other parties, such as suppliers and customers.
5. Human Resources Focus
, Addresses the issues of people and process. Human resource focus addresses issues
of employee involvement. This entails continuous improvement programs, employee
training, and functioning of teams. Employee involvement is considered a critical element
of quality.
6. Process Management
Process management involves documentation of processes; use of tools for quality
improvement, such as statistical process control; and the degree of process integration
within the organization.
7. Business Results
Numerous measures of performance are considered, from percentage of defective items
to financial and marketing measures. Companies need to demonstrate progressive
improvement in these measures over time, not just a one-time improvement.
Who are the quality gurus and what were their contributions to the TQM concept?
(Chapter Topic & Page Number: Quality Gurus, 140; see also table 5.2)
Quality Guru Main Contribution
Walter A. Shewhart ● Contributed to understanding of
process variability.
● Developed concept of statistical
control charts.
W. Edwards Deming ● Stressed management’s responsibility
for quality.
● Developed “14 Points” to guide
companies in quality improvement.
Joseph M. Juran ● Defined quality as “fitness for use.”
● Developed concept of cost of quality.
Armand V. Feigenbaum ● Introduced the concept of total quality
control.
Philip B. Crosby ● Coined phrase “quality is free.”
● Introduced concept of zero defects.
Kaoru Ishikawa ● Developed cause-and-effect
diagrams.
● Identified concept of “internal
customer.”
C215 - Operations Management Study
Guide
Chapter 5
What is the total quality management philosophy?
(Chapter Topic & Page Number: The Philosophy of TQM, 143-154; see also Table 5.3)
Total quality management focuses on the root causes of quality issues and correcting them
before they become issues. TQM expects to deliver products that meet customers expectations
as well as continuously improves on them.
What are the five definitions of quality?
(Chapter Topic & Page Number: Defining Quality, 135-136)
1. Conformance to specifications
How well a product or service meets the targets and tolerances determined by its
designers.
2. Fitness for use
A definition of quality that evaluates how well the product performs for its intended use.
3. Value for price paid
Quality defined in terms of product or service usefulness for the price paid.
4. Support services
Quality defined in terms of the support provided after the product or service is
purchased.
5. Psychological criteria
A way of defining quality that focuses on judgmental evaluations of what constitutes
product or service excellence.
,What are the differences of quality between Manufacturing and Service
organizations?
(Chapter Topic & Page Number: Differences between Manufacturing and Service Organizations,
136-137; see also Table 5.1)
Manufacturing Organizations Service Organizations
Conformance to Specifications Intangible factors
Performance Consistency
Reliability Responsiveness to Customers Needs
Features Courtesy / Friendliness
Durability Timeliness / Promptness
Serviceability Atmosphere
What are the different quality standards outlined in the text and what does each
represent? (Chapter Topic & Page Number: Quality Awards and Standards, 154-156)
1. Leadership
Examiners consider commitment by top management, their effort to create an
organizational climate devoted to quality, and their active involvement in promoting
quality. They also consider the firm’s orientation toward meeting customer needs and
desires, as well as those of the community and society as a whole.
2. Strategic Planning
The examiners look for a strategic plan that has high-quality goals and specific methods
for implementation
3. Customer & Market Focus
Addresses how the company collects market and customer information. Successful
companies should use a variety of tools toward this end, such as market surveys and
focus groups. The company then needs to demonstrate how it acts on this information
4. Information & Analysis
Examiners evaluate how the company obtains data and how it acts on the information.
The company needs to demonstrate how the information is shared within the company
as well as with other parties, such as suppliers and customers.
5. Human Resources Focus
, Addresses the issues of people and process. Human resource focus addresses issues
of employee involvement. This entails continuous improvement programs, employee
training, and functioning of teams. Employee involvement is considered a critical element
of quality.
6. Process Management
Process management involves documentation of processes; use of tools for quality
improvement, such as statistical process control; and the degree of process integration
within the organization.
7. Business Results
Numerous measures of performance are considered, from percentage of defective items
to financial and marketing measures. Companies need to demonstrate progressive
improvement in these measures over time, not just a one-time improvement.
Who are the quality gurus and what were their contributions to the TQM concept?
(Chapter Topic & Page Number: Quality Gurus, 140; see also table 5.2)
Quality Guru Main Contribution
Walter A. Shewhart ● Contributed to understanding of
process variability.
● Developed concept of statistical
control charts.
W. Edwards Deming ● Stressed management’s responsibility
for quality.
● Developed “14 Points” to guide
companies in quality improvement.
Joseph M. Juran ● Defined quality as “fitness for use.”
● Developed concept of cost of quality.
Armand V. Feigenbaum ● Introduced the concept of total quality
control.
Philip B. Crosby ● Coined phrase “quality is free.”
● Introduced concept of zero defects.
Kaoru Ishikawa ● Developed cause-and-effect
diagrams.
● Identified concept of “internal
customer.”
