quality control business model

Models of Quality Assurance: Definition, Meaning & Frameworks

There are many different models of quality assurance, but they all share a similar goal: to ensure that products and services meet specific standards of quality. Quality assurance is a process that assesses whether or not a product or service meets these standards.

There are many different ways to approach quality assurance. Some companies may have their in-house quality assurance programs, while others may outsource this function to third-party organisations. There are also various international standards that companies can choose to follow, such as the ISO 9000 series or the Six Sigma methodology.

The most significant thing is to find a quality assurance model that works for your company and your specific needs. There is no one-size-fits-all solution, so it’s essential to tailor your approach to your products and services.

The significance of quality assurance cannot be understated. In today’s global economy, customers have more choices than ever before, and they will be quick to take their business elsewhere if unsatisfied with your product or service quality. 

By ensuring that your products and services meet the highest possible standards, you can give yourself a competitive advantage and keep your customers coming back for more.

Also Read: Operations Management: Syllabus, Courses, and Certifications

What are the Different Types of Quality Assurance Models?

Models of quality assurance are the methods and techniques used to ensure that products or services meet a certain standard of quality. They can help organisations ensure that all standards are met before any product or service is released into the marketplace.

There are several different types of Quality Assurance models, including:

• Statistical process control (SPC)
• Total Quality Management (TQM)

Each of these models has different strengths and weaknesses that must be considered when choosing the proper model for a specific situation.

Statistical Process Control: Process control monitors processes over time by measuring and recording their performance. It helps identify the root causes of problems and continuously improves the process. It allows organisations to identify improvement areas and track progress to ensure that processes operate within specific quality specifications.

Benefits of Statistical Process Control:

• Continuous process improvement: Processes can be monitored and improved as needed to meet quality standards.
• Reduced costs: By detecting problems early on, organisations can reduce the cost of rework and scrap by preventing quality issues in the future.
• Increased efficiency: SPC can help organisations improve their output by identifying problems before they become too large and costly.
• Effective problem solving: SPC helps organisations identify problems and develop solutions promptly.
• Reduced waste and improved efficiency: By tracking performance, organisations can identify trends in quality and reduce waste.
• Increased customer satisfaction: It is quite evident that customers prefer quality products and services, which is why it’s essential to identify any potential issues before they occur.

Six Sigma: It is a data-driven approach to improving process performance. It focuses on reducing variability, increasing customer satisfaction, and achieving cost savings. It is the most widely used quality improvement program in many different industries, including healthcare, finance and manufacturing.

Six Sigma can help you identify problems quickly, make improvements and track progress. It also requires that you measure performance to ensure that improvements are being made. By utilising Six Sigma techniques, businesses can become more efficient and effective in their operations, leading to improved customer service and better bottom-line results.

Benefits of Six Sigma:

• Improved quality and customer satisfaction: Reducing variability leads to enhanced quality and customer satisfaction.
• Faster process flow: Improving processes’ speed can help increase productivity and efficiency.
• Reduced costs: You can save money by reducing the time and money spent on process improvement.
• Increased efficiency: By making improvements to processes and reducing defects, businesses can become more efficient.
• Increased employee satisfaction: Employees feel motivated when they see that their efforts make a difference in the quality of products and services.
• Improved bottom-line results: These factors lead to better bottom-line results for businesses.

ISO 9000: ISO 9000 is the international standard for quality management. It is a set of principles, processes and guidelines that an organisation can use to help them provide quality products or services. This model provides a framework for organisations to ensure consistent product or service delivery and customer satisfaction. 

ISO 9000 focuses on four key components:

• Customer focus
• Process approach 
• Continual improvement 

By following the principles of ISO 9000, organisations can create a robust quality management system and achieve their desired quality goals. This system also ensures that the organisation follows specific processes to consistently deliver products or services.

Benefits of ISO 9000:

• Improved customer satisfaction: ISO 9000 promotes customer focus and continual improvement, ultimately improving customer satisfaction.
• Improved efficiency: By establishing standard processes, organisations can become more efficient in producing goods and services.
• Enhanced marketability: Organisations implementing ISO 9000 can demonstrate their commitment to the model of quality assurance, thus making them more attractive to potential customers.
• Increased employee engagement: The principles of ISO 9000 foster a culture of continuous improvement, which can lead to increased employee engagement and satisfaction.
• Reduced costs: By establishing regularly reviewed and improved processes, organisations can reduce their costs.
• Increased visibility: ISO 9000 provides a structured approach to documenting and communicating quality objectives, leading to increased organisational visibility.

Total Quality Management: It is an organisational approach that uses continuous improvement techniques and culture shifts to improve business processes and performance metrics. It also emphasises employee involvement in decision-making, problem-solving and continual improvement activities. 

Quality assurance is the practice of ensuring consistent quality in products, services and processes. It is the best quality assurance model that emphasises customer satisfaction and continual process improvement while ensuring that the product or service quality always stays below a certain standard. Quality assurance is closely linked with TQM and focuses on prevention rather than detection.

Benefits of TQM in quality assurance:

• Eliminate or reduce defects in products and services: Instead of focusing on detecting and correcting errors, TQM focuses on prevention. This helps to reduce or eliminate defects in products and services before they are released.
• Foster customer satisfaction: TQM puts the customer at the centre of operations, providing a better understanding of their needs and their feedback. This allows organisations to respond quickly to customer requirements, improving customer satisfaction and loyalty.
• Improved profits: By reducing or eliminating defects, organisations can reduce costs associated with fixing mistakes and improve their overall profitability.
• Reduce waste: TQM encourages organisations to use their resources as efficiently and effectively as possible, reducing waste and increasing efficiency.

The framework of the Quality Assurance Plan

The framework of a quality assurance plan specifies the organisational structure and responsibilities for quality assurance activities, as well as the resources, processes, and techniques to be used.

A quality assurance plan should be tailored to the organisation’s specific needs and its products or services. However, all quality assurance plans should address four key elements: quality objectives, roles and responsibilities, resources, and processes.

Quality objectives are the goals an organisation wants to achieve with its quality assurance activities. They should be specific, measurable, achievable, relevant, and time-bound (SMART).

Roles and responsibilities define who is responsible for each stage of the quality assurance model process. It includes who will perform quality assurance activities, who will review results, and who will make decisions about corrective actions.

Resources are the people, equipment, facilities, materials, and other assets necessary to carry out quality assurance activities.

Processes are the specific methods or techniques that will be used to carry out quality assurance activities. These should be designed to ensure that products or services meet applicable requirements and customer expectations.

Also Read: What Is The Transformation Process In Operations Management?

How To Evaluate Quality Assurance?

There are several ways to evaluate quality assurance. One way is to look at how well the quality assurance process is followed. It can be done by scrutinising the documentation, observing employees, and speaking with customers. Another way to evaluate quality assurance is to look at the results of the process. It can happen by looking at customer satisfaction surveys, product defects, and employee turnover.

There is no definitive answer, as the steps required to evaluate the quality assurance model will vary depending on the assessed process or system. However, some general steps can be followed when assessing any quality assurance process:

• Define the scope of the evaluation. This includes identifying what aspect of the quality assurance process will be evaluated and setting clear objectives for the evaluation.
• Review existing documentation related to the quality assurance process. This could include quality control plans, standard operating procedures, and previous audits or evaluations.
• Conduct interviews with key personnel involved in the quality assurance process. This step will help to understand how the process works in practice and identify any areas of concern or improvement.
• Observe the quality assurance process in action. Where possible, it is helpful to observe first-hand how the process works to understand its effectiveness better.
• Collect data relating to the performance of the quality assurance process. This data could include defects rates, customer feedback, or scrap/rework levels. This step will help quantify how well the quality assurance process performs.

6 Analyse collected data and prepare a report documenting the evaluation findings. This report should include recommendations for improvement where necessary.

Factors to Consider When Deciding The Best Quality Assurance Model

There are several factors to examine when determining the best quality assurance model for your organisation. Here are a few of the most critical factors:

• The type of product or service you provide: Different products and services require different quality assurance models. For example, if you provide a software as a service (SaaS) product, you would likely need a different quality assurance model than if you manufactured physical goods.
• The size of your organisation: The size of your organisation will also dictate what type of quality assurance model is best for you. Generally speaking, larger organisations will require more complex models, while smaller organisations can get by with simpler ones.
• Your budget: Obviously, your budget is a significant factor in deciding which quality assurance model is suitable for you. More complex models will generally cost more to implement and maintain than simpler ones.
• Your company culture: Your company culture should be considered when choosing a quality assurance model. For example, if your company culture values customer feedback and collaboration, then you should choose a model that emphasises those things.
• The complexity of your process: If your process is very complex, you’ll need a quality assurance model that can handle that complexity. Conversely, if your process is relatively simple, you can get by with a simpler model.

How Different Models of QA Help?

There are many different models of quality assurance that can help organisations to enhance the quality of services and products. Some of the most popular models include the Six Sigma model, the Malcolm Baldrige National Quality Award model, and the ISO 9000 family of standards.

Each of these models has its unique approach to quality assurance, and each can be helpful in different ways. The Six Sigma model, for example, emphasises defect prevention and continuous improvement, while the Malcolm Baldrige National Quality Award model focuses on organisational excellence.

The right model for your organisation will depend on your specific needs and goals. However, all of these models can help improve the quality of your products and services.

There are several different models of quality assurance, each with its definition, meaning, and framework. The best model for your organisation will depend on your specific needs and goals. However, all quality assurance models share the goal of improving the quality of products or services. By implementing a quality assurance program, you can improve the overall quality of your organisation’s output and better meet the needs of your customers or clients.

If you’re interested in learning more about models of quality assurance and how to optimise productivity, our Advanced Certificate in Operations, Supply Chain and Project Management is the perfect course for you. This certificate combines industry-based knowledge with theoretical concepts to give students and professionals an advanced understanding of business operations.

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Creating a Culture of Quality

• Ashwin Srinivasan
• Bryan Kurey

Financial incentives don’t reduce errors. Employees must be passionate about eliminating mistakes.

In most industries, quality has never mattered more. New technologies have empowered customers to seek out and compare an endless array of products from around the globe. Shoppers can click to find objective data compiled by experts at organizations such as Consumer Reports and J.D. Power and go online to read user-generated reviews at sites such as Amazon; together, these sources provide an early warning system that alerts the public to quality problems. And when customers are unhappy with a product or service, they can use social media to broadcast their displeasure. In surveys, 26% of consumers say they have used social media to air grievances about a company and its products. And this issue isn’t limited to the consumer space—75% of B2B customers say they rely on word of mouth, including social media, when making purchase decisions.

• AS Ashwin Srinivasan is a managing director, and Bryan Kurey is a senior director, at CEB.
• BK Bryan Kurey is the Senior Vice President of Research at SBI Growth Advisory.

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A Quality Principle: Everything You Need to Know about Total Quality Management

By Kate Eby | June 21, 2017 (updated June 28, 2023)

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Today, we take for granted that the items and services we consume should work well as soon as we purchase them. In fact, many Industrial and post-industrial societies have simply discarded what doesn’t work. However, there was a time when quality and effectiveness were not always the priority for goods and service providers. The intense focus on quality developed largely after World War II, in particular in the 1980s, in response to a marketplace that rejected cheap workmanship and consumer demand increased for durable products that considered the user’s needs. 

In this article, we’ll discuss the history of one of the preeminent quality management philosophies, total quality management (TQM). We’ll learn how it can help for profits and nonprofits become more effective and cost-efficient. In addition, industry experts discuss how TQM compares to other quality philosophies and methodologies, such as Six Sigma and Kaizen.   

What Is Total Quality Management?

Total quality management (TQM) describes a management system wherein a company attains organizational advancement through a commitment to customer requirements. A company meets those requirements when it empowers every employee in every department to maintain high standards and strive for continuous improvement. Total quality management is the predecessor of many quality management systems, such as Six Sigma , Lean, and ISO. 

Andy Nichols, Quality Program Manager at the Michigan Manufacturing Technology Center , says that in practical terms, “Total quality management is really a company-wide initiative to get everybody involved in doing the right thing for the customer.”

What Is Quality Management?

First, what is quality? It is a measure of the level of acceptability of a product or service. The ASQ Quality Glossary defines quality management as “the application of a quality management system in managing a process to achieve maximum customer satisfaction at the lowest overall cost to the organization while continuing to improve the process.” Quality management has four parts: quality planning, quality assurance (defect prevention), quality control (which includes product inspection and other elements, such as competence), and quality improvement.    Why would it take until the 20th century to apply such seemingly obvious principles like product goals and parts inspection? Perhaps the right historical circumstances didn’t present themselves until the 20th century. Nichols credits new mass-production techniques, such as Ford’s assembly line, and the urgent demand for materials during two world wars for this particular innovation. “The US military demanded to some extent that every product they purchased be good because soldiers lives literally depended on the quality of the products they handled,” says Nichols. “Whether it was for K rations or bullets, these wars spurred a manufacturing revolution to focus on the idea of getting things right every time.”    Statistics play an integral part in quality management because being able to predict accuracy through numbers is much less expensive than inspecting parts. Moreover, sometimes inspection is simply inconvenient. “McDonald's needs to know that every burger is right without having to take a bite out of each one,” says Nichols. 

Total Quality Management Principles

No single accepted body of knowledge exists for total quality management, as does, for example, the Project Management Body of Knowledge (PMBOK) for the Project Management Institute. Similarly, no prescribed actions exist for implementing TQM methods and tools. Organizations have been free to deploy and adapt TQM as they see fit, giving way to many definitions of the methodology. Despite these challenges to standardization, it’s possible to describe generally accepted principles:

• Customer Satisfaction  
• Employee Commitment: This creates empowerment through training and suggestion mechanisms. 
• Fact-Based Decision Making: Teams collect data and process statistics to ensure that work meets specifications.
• Effective Communications: There should be an open dialogue throughout an organization.
• Strategic Thinking: Quality must be part of an organization’s long-term vision.
• Integrated System: A shared vision, including knowledge of and commitment to principles of quality, keep everyone in a company connected. Taiichi Ohno recognized that even suppliers are an important part of the system. 
• Process-Centered: You can deconstruct every activity into processes, and, therefore, locate and repeat the best process. 
• Continuous Improvement: Every employee should always be thinking about how to better perform their job.

You could sum up the goal of TQM in this way: “Do things right the first time, every time.”  

The History of Total Quality Management

There is no single, agreed-upon source for the phrase total quality management. Some experts believe it came from two books by seminal quality management thinkers: Armand Feigenbaum’s Total Quality Control and Kaoru Ishikawa's What Is Total Quality Control? The Japanese Way . Others say the terminology arose from an initiative in the United States Navy to adopt quality management guru William Deming’s recommendations, which they termed total quality management . TQM did not enjoy widespread acceptance until the 1980s.   The roots of the principles and practice of TQM extend back to the early 20th century and Frederick Taylor’s Principles of Scientific Management , which advocated a consistent way of performing tasks and inspecting finished work to prevent defective products from leaving the shop. Further innovation came in the 1920s with Walter Shewhart’s elaboration of statistical process controls , which one could apply at any point in the production process to predict quality levels. It was Shewhart who developed the control chart, used today for managing with Kanban and Agile.    Throughout the 20s and 30s, Shewhart’s friend and mentee, William Deming, developed statistical process control theories that he would eventually use to help the US Census department in the early 1940s. This was the first use of statistical process control in a non-manufacturing field. 

The Beginning of the Quality Era in Japan

After the war, other American quality theorists, including Deming, who would achieve hero status in Japan, advised Japanese industry on how to improve processes and output to rebuild their war-shattered economy. At the time, the term made in Japan was synonymous with shoddy craftsmanship. As early as 1945, such visionaries as electrical engineer Homer Sarasohn spoke about controlling variation and monitoring process to produce better deliverables.    As a result, in the 1950s, quality became the byword for Japanese manufacturing. Quality concerned not just management, but all levels of a company. In the 1960s, quality circles began appearing in Japanese workplaces to allow employees the opportunity to discuss problems and consider solutions, which they then presented to management. Starting on the factory floor, quality circles spread to other functional departments. The company-wide focus on quality may also provide a clue to the origin of the phrase total quality . 

Total Quality Management in the USA

By the 1970s, the term made in the USA was no longer a badge of pride. Since the end of WWII, the main effort in American factories was to produce a large quantity of items, maintain the production schedule, and save money. Usability and durability seldom mattered until concerns about lack of product quality reached a fever pitch. As Japan successfully challenged the United States for industrial leadership, US industry now took a page from Japan’s quality-improvement book. A new interest in quality management took hold, building on the work of Shewhart’s disciples, such as Deming, Josef Juran , and Kaoru Ishikawa in Japan. Influential businessmen like Philip Crosby championed the trend.  

Although the growth of TQM seems to have occurred exclusively within the precincts of industry, the basic outlines of the concept owe much to a 1980s US Navy project that used Shewhart and Deming’s PDCA (plan, do, check, act) model. Navy guidelines articulated the principles that customer requirements should define quality and continuous improvement should pervade an entire organization. Navy success with the methodology led to TQM’s adoption by other armed services, such as the army and coast guard, and eventually the rest of the US government. Congress established the Federal Quality Institute in 1988 to highlight the need for quality management in business and reward organizations for successful implementations. 

Total Quality Management Meets the World

Quality management began in manufacturing, and TQM, like it’s subsequent methodologies, adapted well to finance, healthcare, and other fields. Some of the landmark companies to adopt TQM include Toyota, Ford, and Philips Semiconductors.

Worldwide, countries such as Germany, France, the UK, and Turkey established TQM standards. But by the 1990s, TQM was superseded by ISO (International Standards Organization), which became the standard for much of continental Europe, and by another methodological response of the 1980s to quality concerns, Six Sigma. Nevertheless, TQM principles form the basis for much of ISO and Six Sigma. For example, PDCA appears under the Six Sigma method DMAIC (define, measure, analyze, improve, control). And in the 2000s, the ISO governing body recognized TQM as a foundational philosophy. TQM lives on in data-driven methods for a data-driven age. 

William Deming and the Origin of Total Quality Management

Much of our current understanding of the value and pursuit of quality traces back to William Deming. This American statistician, engineer, and management consultant laid many foundations for the use of statistics in production and work management. He introduced statistical process methods to the US Census Bureau in the early 1940s, marking the first time they were used in the business or service sector. During WWII, he advised US business and government on statistical methods to help with planning for wartime manufacturing. After the war, Deming was recruited by no less than General Douglas MacArthur to advise Japanese officials on census models to assess war damage and plan for rebuilding.  

Deming distinguished himself among many of the occupying forces by showing a genuine interest in Japan and its culture. Perhaps it’s not surprising, then, that the Japanese revere him for his role in midwifing the Japanese economic miracle.    Because Japan lacked abundant natural resources, Japanese leaders viewed the exportation of goods worldwide as their main path to financial success. Their post-war reputation for low-quality products posed a particular challenge to this goal. Deming was invited back to Japan by the Union of Japanese Scientists and Engineers (JUSE), whose president was Kaoru Ishikawa, to discuss quality management, ideas that formed the basis for what later became known as TQM. Japanese products were gradually recognized for usability and durability. In 1960, for his efforts on behalf of Japanese industry, Deming received the Second Order Medal of the Sacred Treasure from the Emperor of Japan. By the 1970s, Japanese exports surpassed those of the United States.    By contrast, American goods gained a reputation for poor design and defects. As early as 1940, Juran remarked that producing goods and meeting deadlines took priority, with quality being relegated to the final inspection. Deming believed that as soon as the war was over, US industry lost interest in statistical methods for pursuing quality. Ironically, it was Deming who, in the late 70s and early 80s, introduced the US and the UK to the quality management principles he’d taught in Japan 30 years earlier. In 1967, he published the article “What Happened In Japan?” in the journal Industrial Quality Control . Professionals consider it to be an early version of his famous 14 Points and PDCA cycle.

Although well-known in academic quality control circles, he achieved greater prominence when he was interviewed for the 1980 NBC documentary “If Japan Can, Why Can’t We?” In the program, Deming emphasized that, “If you get gains in productivity, it is only because people work smarter, not harder. That is total profit, and it multiplies several times.” The documentary revealed another act in Deming’s life, that of a sought-after quality consultant to American business. He gained a reputation for bluntness and fearlessness in the presence of senior executives. Legend has it he told senior Ford staff that 85 percent of quality issues resulted from poor management decisions. Some companies rejected him. However, on his advice, Ford conducted user surveys before designing and building the Ford Taurus. In 1992, the Taurus became the number one selling car in the US.   In his 1986 book, Out of the Crisis , he discussed his 14 Points for Management . The following year, at the age of 87, he was awarded the National Medal of Technology. In 1993, the year of his death, he established the Deming Institute . 

Why Is Total Quality Management Important to an Organization?

Nichols says that TQM tools and principles acquire power not when an organization creates a dedicated quality department, but when it includes the whole company in the pursuit of high quality. An example is the quality circle, in which workers directly involved in a process brainstorm to discover solutions. “People are a fabulous resource that is frequently underutilized. The leadership often doesn’t recognize the value that they bring to the everyday workplace. Employees know how to fix problems,” asserts Nichols. In addition to tapping a native resource, implementing a TQM philosophy can help an organization:

• Ensure customer satisfaction and customer loyalty
• Ensure increased revenues and higher productivity
• Reduce waste and inventory
• Improve design 
• Adapt to changing markets and regulatory environments
• Increase productivity
• Enhance market image
• Eliminate defects and waste
• Increase job security
• Improve employee morale
• Reduce costs 
• Increase profitability

What Are the Costs of Quality?

A fundamental tenet of TQM is that the cost of doing things right the first time is far less than the potential cost of re-doing things. There are also residual losses when customers abandon products and brands for quality reasons. Some schools of thought view quality as having a cost which cannot be recouped. Juran, Deming, and Feigenbaum held a different view. For advocates of TQM, the cost of quality really describes the cost of not creating a quality deliverable. There are four primary cost categories:

• Appraisal Costs: Appraisal costs cover inspection and testing throughout the production cycle. This includes verifying that the materials received from the supplier meet specifications and ensuring that products are acceptable at each stage of production.
• Prevention Costs: Prevention costs include proper setup of work areas for efficiency and safety, and proper training and planning. This type of cost also includes conducting reviews. Prevention-related activities often receive the smallest allocation of a company’s budget.
• External Failure Costs: This category concerns the cost of issues following a product’s market release. They may include warranty issues, product recalls, returns, and repairs.
• Internal Failure Costs: Internal failures are the costs of problems before products reach customers. Examples of internal failures include broken machines, which cause delay and downtime, poor materials, scrapped product runs, and designs that require rework.

Total Quality Management Models

Although TQM does not possess one universally recognized body of knowledge, organizations do pattern their efforts after a few formal models, including several industry entities and awards.   The Deming Application Prize was created in Japan in 1950 by the Union of Japanese Scientists and Engineers (JUSE) to acknowledge companies and individuals from around the world for their successful efforts at implementing TQM. Winners have included Ricoh, Toyota, Bridgestone Tire, and many others.   Congress established The Malcolm Baldrige National Quality Award (MBNQA) in 1987 to raise awareness of quality and reward US companies who pursue it. The National Institute of Standards and Technology (NIST) administers the award. It is given to large and small companies and nonprofit entities that demonstrate excellent performance in the following areas:

• Delivery of increasing value to customers and stakeholders, contributing to organizational sustainability
• Improvement of overall organizational effectiveness and capabilities
• Implementation of organizational and personal learning

Past winners have included the Chugach School District, Concordia Publishing House, and Boeing Mobility.    The nonprofit European Foundation for Quality Management (EFQM) was established in 1989 to provide a quality framework for organizations throughout Europe. They maintain the EFQM excellence model, which embraces the following precepts:

• Adding value for customers
• Creating a sustainable future
• Developing organizational capability
• Harnessing creativity and innovation
• Leading with vision, inspiration, and integrity
• Managing with agility
• Succeeding through the talent of people
• Sustaining outstanding results 

Participating organizations can partake of training and assessment tools and may apply for the EFQM Excellence Award.    The International Organization for Standards (ISO 9000) publishes guidelines and specifications for parts, processes, and even documentation to ensure that quality is consistent across companies, organizations, and borders. 

How Do You Implement Total Quality Management?

PDCA lies at the core of many 20th century quality efforts. PDCA began in the 1920s as a conception by engineer and statistician Walter Shewhart. It was originally called PDSA (plan, do, study, act). Widely disseminated by Deming, who referred to it as the Shewhart cycle, it is now often referred to as the Deming cycle. 

Marlon Walters, the Founder and CEO of Horizon Group Consulting, explains each step of PDCA: 

“ Plan:  The planning phase is the most important. That’s where management, along with the associates, identify the problems to see what really needs to be addressed — the day-to-day things that may be happening on the productivity side that management is not aware of. So they’re trying to determine a root cause. Sometimes, employees do research or high-level tracking to narrow down where an issue may originate.

Do:  The doing phase is the solution phase. Strategies are developed to try to fix those problems identified in the planning phase. Employees may implement solutions and if a solution doesn’t appear to work, it’s back to the drawing board. In contrast to Six Sigma, it’s less about measuring gains and more about whether the employees judge the solution to be working. 

Check:  The checking phase is the before and after. So after you’ve made these changes, you see how they’re doing.

Act:  The acting phase is the presentation or the documentation of the results to let everybody know, ‘Hey, here’s how we were doing it. Here’s how it is now. This is the new way, and this is what this should address going forward.’”

Nichols says that in 2000, ISO acknowledged PDCA as a foundational method. It appears again in Six Sigma as the DMAIC method (define, measure, analyze, improve, and control). Walters notes that TQM is much more people oriented, while Six Sigma is process based. He sees, for example, that the term define “takes the human element out” and the term measure focuses on data.  

Total Quality Management, Kaizen, and Six Sigma: Which One When?

While TQM’s method of using employees as a source of ideas and solutions can help companies, Six Sigma’s process and measurement focus — which promotes data-driven decisions — offers compelling benefits. Walters uses the example of producing peanut butter and jelly sandwiches.   “We’d start out with two pieces of bread, add the peanut butter, add the jelly, and put the two pieces of bread together. But, maybe the edges are smashed together. Maybe the corners are damaged. Or, when our customers get it, they say the bread is soggy. Within that process, we’re not sure whether we’re putting on too much jelly or whether we’re using the wrong type of peanut butter. You just don’t know what it is, so you have these group meetings and brainstorm until your customer response is what you want, and the level of acceptance of your quote unquote quality product is where you desire it to be,” says Walters.   With Six Sigma, however, the questioning process would drill down to the details. What kind of bread were you using? What kind of peanut butter? What kind of jelly?   “That to me is the benefit because it takes the onus off the people and focuses strictly on the process,” asserts Walters. “So, if we tighten up the process, we can feel like we already have quality people. And after the process is repeating in the same manner, even if there are other performance issues, that automatically sets you back to the human side. But then you can manage the human issue properly because you don’t have to worry about your processes. Your numbers aren’t changing.”   Walters states further that most companies want to develop brand loyalty, even if their product is essentially the same as a competitor’s. “If we use TQM, we hope a product is of better quality, so you’ll come back. With TQM, you have to wait for your customers to confirm that it’s good. With Six Sigma, at the end of the day, you don’t guess if your product is better. You know it. If you properly identify your market and your product has the best fit for the niche, you know you have the best product from a process perspective. That leads to the deeper relationships,” he says.    If Six Sigma can offer definitive results for an existing process and TQM can help achieve results over time, where does Kaizen fit? Kaizen is a Japanese word meaning philosophy of improvement. It includes the 5 Ss, seiri, seiton, seiso, Seiketsu, and shitsuke , translated loosely into English as sort, set in order, shine, standardize, and sustain. Kaizen is considered more of a philosophy for how to organize your workspace and the larger workplace and how to have the right attitude toward your work and coworkers.    Kaizen events are improvement efforts that involve small teams that spend a short time, usually about a week, considering and testing improvements. The team then presents its findings to management. Management periodically reviews the solutions to make sure that they continue to benefit the team.    Like TQM, Kaizen approaches efforts from the perspective that the whole company is responsible for quality and that improvement must be continuous. It is generally less methodological than Six Sigma, although Kaizen may inform the lean aspect of Lean Six Sigma. 

The Seven Basic Tools of Total Quality Management

According to the experts, the basic tools of TQM allow anyone - even someone without statistical training - to gather data to illuminate most problems and reveal possible solutions. Here are the seven basic tools of TQM:

• Check Sheet: This is a pre-made form for gathering one type of data over time, so it’s only useful for frequently recurring data.
• Pareto Chart: The chart posits that 80 percent of problems are linked to 20 percent of causes. It helps you identify which problems fall into which categories.
• Cause and Effect Diagram or Ishikawa Diagram: This diagram allows you to visualize all possible causes of a problem or effect and then categorize them.
• Control Chart: This chart is a graphical description of how processes and results change over time.
• Histogram Bar Chart: This shows the frequency of a problem’s cause, as well as how and where results cluster.
• Scatter Diagram: This diagram plots data on the x and y axes to determine how results change as the variables change.
• Flow Chart or Stratification Diagram: This represents how different factors join in a process. 

The Key Players in Total Quality Management: Customers, Suppliers, and Employees

To achieve success with a total quality management program or any other improvement methodology, managers must understand the quality goals for their product or company. They must then communicate those goals, in addition to the benefits of TQM, to the company, as employees play a vital role by contributing their intimate, day-to-day knowledge of product creation and processes.    TQM is a philosophy that values comprehensiveness. Therefore, suppliers are a crucial part of TQM execution. Companies must vet new suppliers and regularly audit existing suppliers to guarantee that materials meet standards. Communication with suppliers about TQM goals is also essential.   Customers are the most significant part of the TQM equation. After all, they’re the reason for TQM’s existence. Aside from the obvious feedback the sales team provides, customers — product or service users — give information about what they want from the deliverable, whether that deliverable is tangible or a service.

Certifications in Total Quality Management

Since its heyday in the 1980s and 1990s, TQM has been largely superseded by Six Sigma and ISO 9000. “The thing about Lean and Six Sigma is that they have a very definite set of methods to achieve these goals effectively. You go do x, y, and z,” explains Nichols. “ISO is a universal standard, and it’s clear what you have to do.Of course, what goes along with that is that you can be certified, which is outside the scope or remit of TQM,” concludes Nichols. He suggests that TQM lost traction in the UK because Europe adopted ISO in the 1990s. Today, formal TQM training is rare. Nichols suggests that companies with interest in pure TQM may pursue something like the Baldrige award. 

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The EFQM Model

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The EFQM Model is a globally recognised management framework that supports organisations in managing change and improving performance.

Trusted by thousands of organisations worldwide for more than 30 years, the EFQM Model not only remains relevant but continues to set the management agenda for any organisation wanting a long term, sustainable future.

The EFQM Model structure is based on the simple but powerful logic of asking three questions:

“Why” does this organisation exist? What purpose does it fulfil? Why this particular Strategy…

“How” does it intend to deliver on its Purpose and its Strategy…

“What” has it actually achieved to date? “What” does it intend to achieve tomorrow…

Why should I use the EFQM Model?

Since its inception, the EFQM Model has provided a blueprint for organisations across and beyond Europe to develop a culture of improvement and innovation.

If you want to define a strong purpose, inspire leaders at every level and create a culture committed to driving performance, while remaining agile, adaptive and able to evolve for the future, then the EFQM Model is for you.

We know the EFQM Model is used and consumed by organisations for several different aims and purposes. In this section, based on the information we have gathered from experienced practitioners, you will gain an insight into the alternative uses of the EFQM Model that have been, and continue to be implemented.

Thanks to its simple structure and the fact that 50,000 organisations worldwide use it, the EFQM Model offers users a common language, regardless of size or sector, that acts as a facilitator for sharing good practices and the potential to learn from peers and best in class organisations. The starting point in such a benchmarking exercise is to use the EFQM Model and RADAR to build an “As is” picture to understand where the organisation stands compared to its marketplace, and beyond, before searching for benchmarking partners.

In those situations where a new business is being established, be it large or an SME, the fundamentals on which the EFQM Model is based provides the new organisation with a road map for introducing what matters most in building a Key Stakeholder-driven Strategy that Creates Sustainable Value.

Baselining current performance can represent the start of the journey for any organisation to establish and then develop a continuous improvement mindset over a period of time, reinforced by regular checkpoints to monitor progress. The EFQM Model and AssessBase provide any organisation with the capability to develop the desired continuous improvement mindset.

There will be many reasons for an organisation wanting to undertake a transformation programme. Still, regardless of the reasons, the EFQM Model and RADAR has a role to play in designing, implementing and managing the effectiveness of that programme. The EFQM Model and RADAR help break down the transformation programme into several defined approaches and expected results that move the organisation from the “As Is” to the desired “To Be” state, managing the transformation as a red thread across the Criteria of the EFQM Model.

Applying the EFQM Model, RADAR, and AssessBase together, gives any organisation resources capable of supporting the management of key corporate events such as mergers or demergers, or the sale and purchase of businesses. For example, in one mode of use, these tools can provide a baseline assessment of the target business to establish its fit, or otherwise, with an existing corporate structure, assistance with due diligence on acquisitions and gap analysis for integration or disposal plans. In the second mode of use, these tools can help the organisation envision the future, expressed in the context of the Model Criteria, as a consequence of such corporate actions.

Using the EFQM Model enables organisations to build their resilience when managing those emerging risks that have been identified with the potential to cause a significant, negative impact on the business. Having identified which of those significant risks require priority attention, RADAR can be used to develop and monitor the mitigation plans and subsequent actions, helping to protect the business by ensuring the risk has been reduced or controlled, and resilience is further embedded.

Organisations are using the EFQM Model and RADAR to complement their existing procurement and funding processes, using them to baseline, accredit and track the improvement of suppliers’ and funding recipients’ capabilities and performances.

Using the EFQM Model and RADAR, organisations review their current performance, capabilities, effectiveness of their Strategy execution and sustainable value creation. Using the EFQM Model in this mode allows any organisation to take a snapshot of, and understand, its current organisational maturity.

Organisations use the EFQM Model to prepare for and then undergo an external assessment linked to EFQM’s Recognition portfolio. Using the EFQM Model, qualified EFQM Assessors review the current business of an EFQM Recognition applicant, identify their main strengths and gaps, and provide it with other relevant insights. Organisations are scored out of 1000 points according to their externally reviewed level of organisational maturity and receive a Recognition certificate that matches the maturity level achieved.

Although disruption in the market has been an ever-present fact of life for organisations to deal with in the past, today, the speed and diversity of the disruption is an ever-increasing reality. Being able to sense and respond to the potential impact of major disruptions in the market by putting in place prioritised, mitigating actions is a core competence that organisations need to possess if they are to continue to be successful. The use of the EFQM Model and RADAR, regardless of the size or maturity of organisations, has been shown to have a major role in helping them to better sense and respond to these market disruptions.

Download your FREE full version of the EFQM Model Brochure

“The EFQM Model is our foundation”

A globally-recognised practical framework for organisational change and performance improvement.

You can now download the FULL version of the EFQM Model Brochure, which covers all the main concepts and use cases.

How to Develop a Quality Strategy/6 Advantages of Quality Control

We all know when something is poor quality, but agreeing what quality is and more specifically how to implement a quality strategy in your organisation is much harder.

In this article I am going to explore what quality means,  how best to achieve it in your organisation and the advantages of quality control.

What is Quality?

• A Definition of Quality Management

Learning from Quality Failure

• Align your Business and Quality Strategies

How to Achieve Robust Quality Management

A culture of continuous improvement, 6 advantages of quality control.

The best explanation of quality that I have ever read was by the Chartered Quality Institute :

‘Quality is an outcome – a characteristic of a product or service provided to a customer, and the hallmark of an organisation which has satisfied all of its stakeholders.’  

Quality management is therefore (they go onto say), 'about making organisations perform for their stakeholders – from improving products, services, systems and processes, to making sure that the whole organisation is fit and effective.'

What qualifies as an acceptable level of quality for your organisation is accordingly ultimately a question for your stakeholders. Stakeholders being anyone who has an interest in the success of what your organisation does. Customers will be the most important group of stakeholders for the majority of businesses, but investors, employees, suppliers and members of our wider society are stakeholders too. Delivering an acceptable level of quality in your organisation means knowing who your stakeholders are, understanding what their needs are and meeting those needs (or even better, exceeding expectations), both now and in the future.

While quality and quality management are sometimes hard to define, we all know what quality failure looks like.

A quick Google of ‘quality failure’, immediately brings up numerous examples:

• J. P. Morgan’s loss of $6.2 billion in 2012 as a result of inadequate internal controls and the gross misconduct of two traders
• Boeing’s launch of 787 Dreamliner plagued with delays and problems which doubled the number of estimated years for development from 4 to 8 years and a cost of £32 billion from an estimated £6 billion
• Toyota’s 2010 quality failures impacting their reputation as a quality leader because of removable floor mats that caused the accelerator to stick and led to 52 deaths and a recall of 9 million cars in the US .

For more on quality failures and their cost please read:  What is the cost of quality failure? 

So how do we avoid quality failure and provide a quality product or service to our customers? One that meets or even exceeds their expectations?

Align your Corporate and Quality Strategies

Too often in the past quality has been seen as non-strategic and not core to the real business of the organisation - perhaps even an add-on. 

However the CQI (and many others in fact) firmly believe that meeting and exceeding your stakeholder's expectations comes down to three things:

• strong governance to define the organisation's aims and translate them into action,
• a robust systems of assurance to make sure things stay on track and
• a culture of continuous improvement

To have any chance of achieving these, quality must sit right at the heart of your organisation and your quality strategy must be totally aligned and integrated with your organisation's corporate strategies.

Achieving a robust systems of assurance to make sure things stay on track, requires your Quality Management System to also be right at the heart of your business extending (well beyond the quality department) organisation-wide.

Indeed, with ISO 9001:2015  the core requirements for a complying Quality Management System are that it is strategic, central to the core business of the organisation and relevant to all employees.

This is underpinned by certification to ISO 9001:2015 requiring the passing of an audit which checks that your Quality Management System delivers on the Seven Quality Management Principles.

These Quality Management Principles (QMPs) are:

• QMP 1 – Customer focus: Meeting - and exceeding - your customers’ current and future needs is the primary focus of quality management.
• QMP 2 – Leadership: Having a unified direction and mission that comes from strong leadership is essential in promoting the right culture.
• QMP 3 – Engagement of people: Competent, empowered and engaged people at all levels of your organisation.
• QMP 4 – Process approach: Understanding activities as processes that link together and function as a system to yield more effective and efficient results.
• QMP 5 – Improvement: Successful organisations have an ongoing improvement focus.
• QMP 6 – Evidence-based decision making: Ensuring your decisions are based on the analysis and evaluation of data is more likely to produce the desired result.
• QMP 7 – Relationship management: Identifying the important relationships you have with interested parties such as your suppliers – and setting out a plan to manage them – will drive sustained success.

 For more detail on how to achieve the ISO 9001:2015 quality standard please download our expert guide to ISO 9001:2015.

Whether or not you take an ISO quality certification approach however, the most effective way to align your business and quality strategies is to put your quality management system firmly at the heart of your organisation.

A culture of continuous improvement can quite hard to achieve, given that it is as much about changing hearts and minds as is it about actions. There are however just 3 vital ingredients:

Senior Management Commitment

Employee involvement .

• Ongoing Communication

All of which need to be built on an obvious link between quality and the  strategic goals of the organisation .

For more on this please read: How do I Create a Culture of Continuous Improvement?

Once a quality approach has been adopted organisation-wide, there is both the vision and the platform in place to:

• Understand how the organisation currently works and where it can be improved
• Educate your employees in taking a systemic dissatisfaction with the status quo, no matter how good the organisation is perceived to be.
• Identify clearly and visibly responsibility, accountability and process ownership, so that the person responsible for the quality of each process is known – not least by them.
• Model the risk of quality failure and the various approaches to mitigate against it.
• Implement improved processes with better quality outcomes reduced.
• Adopt a Continuous Improvement culture.

These are just some of the advantages of quality control.

Establishing your quality strategy and quality management system at the heart of your organisation is never a risk, but not doing so certainly is. 

Related Articles:

What is the cost of quality failure

How do I Create a Culture of Continuous Improvement?

Related White Papers:

How to Achieve ISO 9001:2015

This is an updated and refreshed version of an article originally written in 2017.

Written by Carma Evans

Carma Evans is now Triaster's General Manager. During her many years with the company she has fulfilled many roles and there is not much that she doesn't know about driving business improvement.

If you still have questions or prefer to get help directly from an agent, please submit a request. We’ll get back to you as soon as possible.

Please fill out the contact form below and we will reply as soon as possible.

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Quality Control - Explained

What is quality control.

Written by Jason Gordon

Updated at June 26th, 2021

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Table of Contents

Quality control refers to a set of procedures through which businesses review their manufactured products to ensure they meet standard quality requirements. There are certain standards or qualities that products must meet. Failure of the products to meet the stipulated qualities means they must be junked, reworked, or improved upon. 

The International Organization for Standardization (ISO) specifies quality standards that products must fulfill. 

 Quality control must be carried out in every process of a business operation to ensure that products meet the required specifications. Testing the units of a product to determine whether they are within the scope of quality standards is essential. 

The type of product a company manufactures determines the quality control measures that will be used. Inspectors, generally employees of regulatory bodies, ensure that products meet quality control criteria.

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• 5s Model or Method of Business Process Management - Explained
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Business Models For Quality Assurance

An analysis of existing best practices.

• Business Models For Quality Assurance Report 2.44 MB

One of the objectives of the QualitEE Project is to implement national quality assurance schemes for energy efficiency services. This is considered to be a critical next step to be taken towards European standardisation.

The quality assurance schemes developed for each Country aim to scale up investment in energy efficiency in buildings by establishing quality certification frameworks for energy efficiency services across Europe, which do not currently exist.

In the Business models for quality assurance schemes report, 10 shortlisted business models – selected by QualitEE partners from a long list of 84 – are presented, described and analysed. The aim of the report is to inform the development of functioning quality-assurance business models for energy efficiency services across Europe.

To further increase understanding, the attributes and qualities of the different quality assurance schemes were categorised, and a benchmarking framework developed to allow for comparison of the business models.

The business models analysed in the report are:

• DECA Quality Label
• Thermoprofit
• BUND “Energy Saving Hospital” Certificate
• CHPQA Certificate
• Passive House
• Energy Performance Contracting – Standard Contract (Austria)
• ANESE Certificate
• Klimaaktiv Building Standard
• ZMRK Quality Label in Construction

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Quality Control

Last updated 22 Mar 2021

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A definition of quality control is:

The process of inspecting products to ensure that they meet the required quality standards

This method checks the quality of completed products for faults. Quality inspectors measure or test every product, samples from each batch, or random samples – as appropriate to the kind of product produced.

The main objective of quality control is to ensure that the business is achieving the standards it sets for itself.

In almost every business operation, it is not possible to achieve perfection. For example there will always be some variation in terms of materials used, production skills applied, reliability of the finished product etc.

Quality control involves setting standards about how much variation is acceptable. The aim is to ensure that a product is manufactured, or a service is provided, to meet the specifications which ensure customer needs are met.

There are several methods of quality control.

At its simplest, quality control is achieved through inspection. For example, in a manufacturing business, trained inspectors examine samples of work-in-progress and finished goods to ensure standards are being met.

For businesses that rely on a continuous process, the use of statistical process control ("SPC") is common. SPC is the continuous monitoring and charting of a process while it is operating. Data collected is analysed to warn when the process is exceeding predetermined limits

Advantages of quality control

With quality control, inspection is intended to prevent faulty products reaching the customer. This approach means having specially trained inspectors, rather than every individual being responsible for his or her own work. Furthermore, it is thought that inspectors may be better placed to find widespread problems across an organisation.

Disadvantages of quality control

A major problem is that individuals are not necessarily encouraged to take responsibility for the quality of their own work.

Rejected product is expensive for a firm as it has incurred the full costs of production but cannot be sold as the manufacturer does not want its name associated with substandard product. Some rejected product can be re-worked, but in many industries it has to be scrapped – either way rejects incur more costs,

A quality control approach can be highly effective at preventing defective products from reaching the customer. However, if defect levels are very high, the company's profitability will suffer unless steps are taken to tackle the root causes of the failures.

• Quality costs
• Quality assurance
• Quality control
• Total quality management (TQM)

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• What Is Total Quality Management?
• Understanding TQM
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• How to Implement TQM
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What Is Total Quality Management (TQM) and Why Is It Important?

Yarilet Perez is an experienced multimedia journalist and fact-checker with a Master of Science in Journalism. She has worked in multiple cities covering breaking news, politics, education, and more. Her expertise is in personal finance and investing, and real estate.

What Is Total Quality Management (TQM)?

Total quality management (TQM) is the continual process of detecting and reducing or eliminating errors in manufacturing. It streamlines supply chain management , improves the customer experience, and ensures that employees are up to speed with training. Total quality management aims to hold all parties involved in the production process accountable for the overall quality of the final product or service.

Key Takeaways

• Total quality management (TQM) is an ongoing process of detecting and reducing or eliminating errors.
• Total quality management is used to streamline supply chain management, improve customer service, and ensure that employees are properly trained.
• The focus is to improve the quality of an organization's outputs, including goods and services, through the continual improvement of internal practices. 
• Total quality management aims to hold all parties involved in the production process accountable for the overall quality of the final product or service.
• There are often eight guiding principles to TQM that range from focusing on customers, continually improving, and adhering to processes.

Investopedia / Katie Kerpel

Understanding Total Quality Management (TQM)

Total quality management is a structured approach to overall organizational management. The focus of the process is to improve the quality of an organization's outputs, including goods and services, through the continual improvement of internal practices. The standards set as part of the TQM approach can reflect both internal priorities and any industry standards currently in place.

Industry standards can be defined at multiple levels and may include adherence to various laws and regulations governing the operation of a particular business. Industry standards can also include the production of items to an understood norm, even if the norm is not backed by official regulations. Acceptance sampling might be used to check the progress toward the TQM goal.

Example of Total Quality Management

Perhaps the most famous example of TQM is Toyota's implementation of the  kanban  system. A kanban is a physical signal that creates a chain reaction, resulting in a specific action. Toyota used this idea to implement its just-in-time (JIT) inventory process.

The company decided to keep just enough inventory on hand to fill customer orders as they were generated to make its assembly line more efficient. All parts of Toyota's assembly line are therefore assigned a physical card that has an associated inventory number.

The card is removed and moved up the supply chain right before a part is installed in a car, effectively requesting another of the same part. This allows the company to keep its inventory lean and not overstock unnecessary assets. Effective quality management resulted in better automobiles that could be produced at an affordable price.

History of Total Quality Management

TQM's history often dates back to the early 1900s when Walter A. Shewhart introduced modern quality control. Shewhart produced a landmark piece of industrial work entitled Economic Control of Quality of Manufactured Product in 1931. This exposition is considered one of the founding and basic principles of manufacturing quality control.

Further developments in Shewhart's work introduced new standards in quality management decades later. Joseph M. Juran published a book called What Is Total Quality Control? The Japanese Way . in 1954. The work was based on Juran's experience of being invited to Japan by Japanese scientists and engineers. Juran later co-authored Quality Planning and Analysis , another bestseller in TQM.

Another prominent figure in TQM history is W. Edwards Deming. Also posted in Japan after the Second World War, Deming became involved with the Union of Japanese Scientists and Engineers (JUSE). His career work included several TQM frameworks (Deming's 14 Points, Deming's Seven Deadly Diseases of Management, and The Deming Wheel).

The exact origin of the phrase total quality management is not known, but several parties mentioned above are credited for helping develop the general concept.

Primary Principles of Total Quality Management

TQM is considered a customer-focused process that focuses on consistently improving business operations management . It strives to ensure that all associated employees work toward the common goals of improving product or service quality, as well as improving the procedures that are in place for production. There are several guiding principles that define TQM.

Focus on Customers

Under TQM, your customers define whether your products are high quality. Customer input is highly valued because it allows a company to better understand the needs and requirements in the manufacturing process. Customer surveys may reveal insufficient durability of goods. This input is then fed back into TQM systems to implement better raw material sourcing, manufacturing processes, and quality control procedures.

Commitment by Employees

Employees must buy into the processes and system if TQM is going to be successful. This includes clearly communicating across departments and leaders what goals, expectations, needs, and constraints are in place. A company adopting TQM principles must be willing to train employees and give them sufficient resources to complete tasks successfully and on time. TQM also strives to reduce attrition and maintain knowledgeable workers.

Improve Continuously

A company should gradually evolve and strive for incremental, small improvements as it learns more about its customers, processes, and competition. This concept of continuous improvement helps a company adapt to changing market expectations. It allows for greater adaptability to different products, markets, customers, or regions. Continuous improvement also drives and widens the competitive advantage that a company has built over related companies.

Adherence to Processes

TQM's systematic approach relies heavily on process flowcharts, TQM diagrams, visual action plans, and documented workflows . Every member engaged in the process must be aware and educated on their part of the process to ensure proper steps are taken at the right time of production. These processes are then continually analyzed to better understand deficiencies in the process.

Strategic and Systematic Approach

A company's processes and procedures should be a direct reflection of the organization's vision, mission , and long-term plan. TQM calls for a system approach to decision making that requires that a company dedicate itself to integrating quality as its core component and making the appropriate financial investments to make that happen.

Data Utilization

The systematic approach of TQM only works if feedback and input is given to evaluate how the process flow is moving. Management must continually rely on production, turnover, efficiency, and employee metrics to correlate the anticipated outcomes with the actual results. TQM relies heavily on documentation and planning, and only by utilizing and analyzing data can management understand if those plans are being met.

Integrate Systems

One way to utilize data is to integrate systems. TQM strategies believe systems should talk to each other, conveying useful information across departments and making smart decisions. When goods or inventory are used in one area, another department should have immediate access to that ERP information. TQM strives to allow everyone to be on the same page at the same time by linking data sources and sharing information across systems.

Communication

Data may transfer between departments freely, but there is a human element to coordinating processes and making sure an entire production line is operating efficiently. Effective communication plays a large part in TQM to motivate employees, educate members along a process, and avoid process errors whether it is normal day-to-day operations or large organizational changes.

Successful TQM requires a company-wide buy-in of every principle. The benefits of TQM quickly diminish if a company does not receive complete buy-in.

How to Implement Total Quality Management

TQM is a unique process. There is not a specific formula for implementing a system that suits every business and each type of industry. But you can create a checklist of issues that might suit your enterprise and proceed with them in chronological order. Some may suit your business while others will not. Select those that you think will provide an advantage.

• Identify your company’s existing culture, its core values, and its systems.
• Use this information to create a system that will serve as your master plan.
• Establish what your customers and clients want and what they expect from your business. Determine how to best meet these expectations and needs.
• Create a team of management and employees to guide and implement your goals and include these efforts in your daily business management process.
• Consistently gather feedback from both employees and customers to gauge your progress.

TQM is not a speedy process. Expect to dedicate an extended period of time to your efforts.

Advantages and Disadvantages of TQM

TQM results in a company making a product for less when it's implemented correctly. Companies that engage in TQM provide more consistent products that yield stronger customer loyalty when they emphasize quality and minimize waste.

As TQM touches every department across an organization, a company may reap substantial savings from materials sourcing, production, distribution, or back-office functions. Companies that successfully implement TQM can usually react more quickly to change and proactively plan ahead to avoid obsolescence.

A company must fully engage TQM principles to fully reap the benefits of TQM. This requires substantial buy-in from every department across an organization. This level of commitment is very difficult to achieve, requires substantial financial investment, and necessitates all levels of management to engage in TQM.

The conversion to TQM may be lengthy, and workers may feel resistant to change. A company may be required to replace processes, employees, equipment, or materials in favor of an untested, partially developed TQM plan. More skilled workers may decide to leave the company if they feel TQM processes don't appropriately utilize their skill sets.

Total Quality Management

Delivers stronger, higher quality products to customers

Results in lower company-wide costs

Minimizes waste throughout the entire production and sale process

Enables a company to become more adaptable

May require substantial financial investment to convert to TQM practices

Often requires conversion to TQM practices over a long period of time

May be met with resistance to change

Requires company-wide buy-in to be successful

Industries Using Total Quality Management

TQM originated in the manufacturing sector, but its principles can be applied to a variety of industries. It provides a cohesive vision for systemic change with a focus on long-term change rather than short-term goals. TQM is used in many industries with this in mind, including but not limited to manufacturing, banking and finance, and medicine.

These techniques can be applied to all departments within an individual organization. This helps ensure that all employees are working toward the goals set forth for the company and improving function in each area. Involved departments can include administration, marketing, production, and employee training.

What Does Total Quality Management Do?

TQM oversees all activities and tasks that are necessary to maintain a desired level of excellence within a business and its operations. This includes the determination of a quality policy, creating and implementing quality planning and assurance, and quality control and quality improvement measures.

What Are the Principles of TQM?

Various iterations of TQM have been developed, each with its own set of principles. Certain core elements persist nonetheless. These include good leadership, emphasis on quality, customer priority, error correction and improvement as an ongoing process, and job training.

What Is a TQM Diagram?

A TQM diagram is a visual depiction of the business and process layout. The diagram usually shows different processes or steps, allowing management to see a process, analyze weaknesses or risks in the flow, and strategically adjust how things are done.

Total quality management is the strategic framework that encourages everyone in an organization to focus on quality improvement. The theory holds that customer satisfaction will increase by being operationally excellent. Many principles drive TQM, but the overall purpose is to eliminate errors, streamline processes, and maximize efficiency.

Toyota. " Section 4. Plant Construction and Expansion Item 4. Development and Deployment of the Toyota Production System ."

American Society for Quality. " Walter A. Shewhart ."

American Society for Quality. " Joseph M. Juran ."

British Library. " W Edwards Deming ."

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• Total Quality Management
• Total Quality Management Models

Total Quality Management is a combined effort of both top level management as well as employees of an organization to formulate effective strategies and policies to deliver high quality products which not only meet but also exceed customer satisfaction.

Total Quality management enables employees to focus on quality than quantity and strive hard to excel in whatever they do.

According to total quality management, customer feedbacks and expectations are most essential when it comes to formulating and implementing new strategies to deliver superior products than competitors and eventually yield higher revenues and profits for the organization.

Credits for the process of total quality management go to many philosophers and their teachings.

Drucker, Juran, Deming, Ishikawa, Crosby, Feigenbaum and many other individuals who have in due course of time studied organizational management have contributed effectively to the process of total quality management.

There are many models of total quality management and it is really not necessary that every organization should select and implement the same model.

Following are the various models of total quality management:

Customers and their feedbacks are the foundation of every Total Quality Management model.

In simpler words, Total Quality Management begins with understanding customers, their needs and what they expect from the organization.

Design foolproof processes and systems to collect customer data, information to further study, analyze and act accordingly. Such activities not only help you understand your target customers but also predict customer behaviour.

As a business marketer, you need to know the age group of your target customers, their preferences and needs.

Employees need to know how their products or services can fulfil customer needs and demands.

Total Quality Management model requires meticulous planning and research . Every total quality management model integrates customer feedbacks with relevant information and plans accordingly to design effective strategies to achieve high quality products.

Strategies formulated to yield better quality products need to be evaluated and reviewed from time to time.

Remember, customers are satisfied only when products meet their expectations, fulfil their needs and are value for money.

Their overall experience with the organization needs to be pleasant for them to be happy and return to the organization even the next time.

Continuous improvements, changes and modifications in the existing processes according to customer expectations are necessary to yield higher profits. Processes can’t be same always.

If a customer complaints about a particular product of yours, find out the root cause of problem. Understand and implement necessary total quality management models to rectify the problem, remove the defect for a high quality product.

The successful implementation of Total quality Management model needs extensive planning and most importantly participation of every single member who is benefitted out of the organization (Management, suppliers, clients and even customers).

Without the participation of each and every employee, total quality management model would be a complete failure.

Total Quality Management model begins with research and collecting information about end-users followed by planning and full participation of employees for successful implementation.

Top level Management needs to make other team members aware of the benefits of total quality management process, importance of quality to survive in the long run and how they can implement various TQM models by prioritizing their customers and their feedbacks.

  Related Articles

• Total Quality Management (TQM)
• Importance of Quality Management
• Elements of Total Quality Management
• Quality Management Tools
• Six Sigma and Quality Management

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• What is Kaizen ?
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• Similarities and Differences in Implementation of Quality Frameworks in Manufacturing and Service Sector
• The PDSA (Plan-Do-Study-Act) Technique for Quality Improvement

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StatPearls [Internet]. Treasure Island (FL): StatPearls Publishing; 2024 Jan-.

StatPearls [Internet].

Quality improvement methods (lean, pdsa, six sigma).

Emily Barr ; Grace D. Brannan .

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Last Update: January 11, 2024 .

• Definition/Introduction

Quality improvement is integral to many sectors, including business, manufacturing, and healthcare. Systematic and structured approaches are used to evaluate performance to improve standards and outcomes. The Institute of Medicine defines quality in healthcare as “the degree to which health services for individuals and populations increase the likelihood of desired health outcomes and are consistent with current professional knowledge.” [1]

In healthcare, quality improvement methods are traced back to the 19 th  century; 2 examples are the advocacy for handwashing in medical care by an obstetrician, Ignaz Semmelweis, and the betterment of living conditions and excessive mortality of soldiers in army hospitals to nurse Florence Nightingale. [1]  Many quality improvement methods can be applied to healthcare, 3 of which include Plan-Do-Study-Act (PDSA), Lean, and Six Sigma. Each method has a unique goal-oriented outcome that has been applied to healthcare to streamline and optimize processes. 

PDSA is a cyclical quality improvement method often compared to the application of the scientific method, differing from Lean philosophy due to its iterative format. [2]  PDSA was adapted to healthcare in 1996 by statistician Gerald J. Langley and built upon its manufacturing origin in 1986 by statistician Edwards Deming. [2]  PDSA focuses on 4 stages: plan, do, study, and act.

The first stage, plan, begins with identifying a project goal. The next stage, do, is a small-scale implementation of the plan applied to meet the goal. The scope or size is small to enable any pivots to be addressed promptly. The study stage compares predicted data outcomes to achieved data outcomes. The act stage combines data from the prior 3 stages into an improved executed plan. The 4 steps must be thought out and repeated for a refined process. PDSA is not a standalone method but utilizes other quality improvement tools and is a key component of the Model for Improvement.[ [2] [3] [4]  

Lean stems from the Toyota Production System (TPS) and focuses on improving quality and productivity through efficient and value-added processes by eliminating 3 items: waste (muda), unevenness or inconsistencies (mura), and overburden or unreasonableness (muri). [5] [4] [6] [7]   TPS, also called the “Toyota way,” is credited to Japanese engineer Taiichi Ohno. Its origin can be traced back to the Henry Ford assembly line and Toyota Motor Corporation production system in the 1950s, as they tried to increase value-added products or services—that is, entities customers were willing to pay for while decreasing extraneous products or services. [8]

Mura can be corrected by standardization to create dependability and reliability. Muri emphasizes creating a culture of problem-solving instead of blaming. Lean has identified 8 wastes or muda. [5] [6]  Defects refer to work that needs modification, alteration, or repair. Overproduction is ordering unnecessary tests. [6]  Waiting can be in the form of waiting for supplies, a turn to use a machine, to be seen by a provider, or for test results, to name a few. Unutilized talent refers to wasted people skills. Transportation may include transporting supplies from one area to another or moving patients from the hospital room to the laboratory for tests. An example of inventory is storing or buying excessive medical supplies, especially if they expire before usage. Unnecessary motion may include wasted movement for providers, caregivers, and patients. [6]  Extra-processing denotes unnecessary steps or work.

5 overarching principles contribute to Lean methodology implementation: [9] [6]

• Identifying the value of a product or service to the customer, which could be the patient or another department in the hospital.
• Value stream mapping is a visualization method of processes, materials, the flow of information, and resources involved in creating a product or service to identify those that add value and remove those that are wasted. [5] [10] ]
• Creating flow by eliminating barriers.
• Establishing pull based on actual customer demand rather than forecasted demand.
• Establishing perfection means that in every system, efforts to eliminate waste are continuous and should always strive to meet or exceed customer or patient needs and satisfaction.

Core to Lean is Kaizen, a focused, team-centric, continuous, and rapid improvement endeavor to implement small changes into systemic, standardized improvement cycles. The understanding of Kaizen is reflected in its etymology, derived from the “Japanese words “kai,” meaning change, and “zen,” meaning good.” [11] [7]

Lean uses different tools to achieve its goals. 5S refers to sorting, setting in order, shining, standardizing, and sustaining elements required to sustain a clean, orderly, and organized workplace. [10]  Just-in-Time (JIT) refers to supplies being available when needed. [12]  This is feasible if there is consistency and uniformity in the system, which allows predictability and control. JIT works in tandem with Kanban or the inventory system, which relies on supplies approval and documentation. A3 is a visual and structured tool that identifies problems and solutions using an A3-sized or 11 x 17 inches paper. [13]

Like Lean thinking, Six Sigma is a methodology focused on optimizing performance, controlling, and decreasing variability. [14] [4]  Six Sigma techniques were developed in the ’80s by Motorola. [15]  Six Sigma is derived from a statistical concept of 6 standard deviations from the mean or 3.4 defects per million units. [16]  Six Sigma often focuses on quantitative healthcare analysis to refine delivery efficiency while increasing patient safety.

Six Sigma is different from other methodologies in that it is focused on financial outcomes and statistical outcomes and requires management support. [15] Leadership support is needed to set the goals for Six Sigma initiatives and train or hire specific personnel in the form of “Belts” as part of the more formalized quality management structure. [17]  The “Belts” signify training and project involvement levels and usually require certification. [17]  A Master Black Belt is the most experienced, trains the other belts, and is the project consultant. Black Belts leads the execution of the Six Sigma projects. Green Belts leads project implementation under the guidance of Black Belts, and Yellow Belts participates as a member in projects. [17]

Six Sigma employs 2 methods: [17] [14] [8] [4]

• DMAIC or Define, Measure, Analyze, Improve, and Control. DMAIC is used for improving current processes.
• DMADV or Define, Measure, Analyze, Design, and Verify. DMADV is employed when developing new processes and products.

Different well-known quality improvement tools are used within the different phases of DMAIC or DMADV. Here are a few examples: [18] [19] [20] [21]

• Design of Experiments: An approach for projects that utilize a structured method of studying variables and outcomes. It may include randomization, established research approaches such as experimental or quasi-experimental, and statistical data analysis.
• Cause and Effect Diagrams or Fishbone or Ishikawa Diagrams: A visualization of factors contributing to a given effect, such as prolonged length of stay. [22]
• Control Chart: A graph that shows variation in data relative to a mean value and upper and lower limits.
• Pareto Chart: Stemming from the 80/20 Pareto principle that 20% of factors cause 80% of the problems, is a bar chart showing the frequencies of factors in descending order from left to right to easily identify the most important factors. [22]
• Root Cause Analysis (RCA): A multi-step process of identifying problems, reasons for the problem, and corrective actions after an adverse event occurs.
• Failure Mode and Effect Analysis (FMEA): A process of identifying possible failure points in a process as a preventive way to address these weaknesses before they cause problems.

In the early 2000s, the Xerox corporation developed Lean Six Sigma or LSS. [8]  LSS marries Lean and Six Sigma approaches and toolboxes and has been used in different business sectors, including healthcare. [8] [17]  Successful LSS implementations usually employ waste reduction first before optimization or variability reduction. The healthcare sector benefits from LSS because of reduced waste and cost, improved and optimized processes, and enhanced patient satisfaction in one continuous effort. [23] [24]

• Issues of Concern

Common challenges in Lean methodology include individual resistance to change, discomfort with inter-professional collaboration, and organizational process variations. [25]  Methods to overcome barriers include maintaining qualified leadership, obtaining feedback, and pursuing feasible projects. [25]  Adequate rollout from senior leadership can be executed by ensuring key stakeholders formally understand Lean practices.

JIT supply chain reduces extra inventory and cost. However, during COVID-19, the lack of supplies, especially personal protective equipment or PPE, exposed the healthcare goal of a slim inventory via reliance on JIT which, during the pandemic, endangered both providers and patients. [12]

PDSA relies on properly executed, small-scale tests before scaling to larger trials. [2]  This belief lies in an understanding that small-scale projects are likely to harbor more controlled environments, allowing for more agile pivots upon seeing favorable changes. However, a recent systematic review indicated that fewer than 20% of articles used iterative cycles and small-scale tests, which could suggest that larger tests were not optimal. [2]  Another area of concern when enacting a PDSA cycle is pursuing an overzealous, large-scale goal that may lie beyond the method's extent. [3]

A bigger issue with PDSA implementation is oversimplification, which results in projects not fully adhering to PDSA principles. [2]  This opens the possibility of incorrect PDSA implementation with inadequate mobilization of resources and skills, jeopardizing scientific rigor. [2]  When applying PDSA cycles to healthcare, leadership must ensure adequate resources, including clinical staff, medical technology, inventory, registries, and funding, are present to integrate PDSA cycles into the workflow.

Six Sigma aims to achieve process improvement by decreasing defects and enhancing quality. In healthcare, this often presents as reducing patient harm while increasing patient safety and patient satisfaction. One of the main challenges faced in Six Sigma operations is the cost of hiring a full-time project manager, an in-house expert, or a Six Sigma belt. Another obstacle is the institutional culture, which requires buy-in from all stakeholders for the project's success. This buy-in must last throughout the project duration, which can exceed 24 months in the case of major improvements. [26]  While recognized Six Sigma belt certificates can be obtained and offer credible structure, they are not mandatory for process improvement. Formal Six Sigma programs offer training courses, which, combined with field experience, enable certificates to be sequentially obtained (white belt, yellow belt, green belt, black belt, to master black belt). [14]  There are concerns that Six Sigma is not being properly used to its full potential in healthcare. [27]

Improving safety culture is critical for long-term quality improvement in healthcare despite challenges in PDSA, Lean, and Six Sigma.

• Clinical Significance

Errors and hazards are present, realistic concepts in healthcare. An extrapolated estimate of over 250,000 deaths based on 2013 hospital admissions occurs in the US annually due to medical errors. [28]  Such errors cause losses upwards of $20 billion annually. [28] [29]  Excessive wait times and process bottlenecks may lead to delayed diagnoses, treatment, and barriers to appropriate medical triaging. [30] [31]  Such outcomes may cause increased patient stress and detrimental effects if delayed reporting is congruent with disease progression, leading to adverse patient outcomes. [30] [31]

Technology in medicine is critical to patient care, allowing centralized team communication, increased patient engagement, and digitized records. Though technological advances such as electronic health records have enabled ease of data acquisition and application of quality improvement functions such as medication allergy alert pop-ups, early rejection and abandonment of technological solutions are seen in healthcare, potentially linked to varied acceptance by users. [32]

The federal healthcare agency Centers for Medicare and Medicaid Services (CMS) has a reimbursement program in healthcare that draws attention to the clinical significance of quality improvement methods in healthcare. [33] [34]  The Medicare Value-Based Purchasing (VBP) program uses direct financial metrics to incentivize performance. [33]  Metrics include adverse events, mortality, and cost reduction.

This agency evaluates organizations on quality measures and adjusts reimbursement based on metrics, promoting quality improvement and patient care. [34]  By adopting quality improvement metrics, healthcare organizations can address patient safety and satisfaction while being mindful of long-term financial and efficiency goals.

• Nursing, Allied Health, and Interprofessional Team Interventions

Quality improvement is a “combined and unceasing effort of everyone – healthcare professionals, patients, and their families, researchers, payers, planners, and educators to make the change that will lead to better patient outcomes, better system performance, and better professional development.” [35]

Interdisciplinary teams used synonymously with interprofessional teams, represent multiple constituents within healthcare working in conjunction with one another. Interprofessional has historically been used more narrowly, signifying working professionals from different professions, while interdisciplinary has traditionally been used more broadly, encompassing distinct healthcare staff members. [36]  Adopting interdisciplinary teamwork is critical in healthcare to foster collaboration and diversity, strengthening systemic culture and goals.

One example of quality improvement methods and interdisciplinary teamwork intervention is seen in the Swiss Cheese Model, which was first referenced in 1991 and published in 1997 by psychology professor James Reason. [37]  The model compared natural eyes in Swiss cheese to eyes or holes in healthcare systems. Specifically, the holes in healthcare, synonymous with errors, led to adverse events due to an alignment of multiple holes or multiple opportunities for improvement. Each slice of cheese represents a protective barrier, including policies, technology, and teamwork. [38]

Though teamwork is needed in healthcare, it may fail without proper communication, which is a leading cause of inadvertent patient harm, including medication errors, treatment delays, and wrong-site surgeries. [39] [40]  Factors influencing communication failure include training differences among health fields, hierarchy, and lack of standardization. [39]

Without mutual collaboration and discussion based on unique perspectives, quality improvement metrics may be prone to fail. By having long-term end goals in mind, such as patient safety, interdisciplinary teamwork can foster quality improvement initiatives. A positive culture of safety does not focus on individual action or error but rather encompasses organizational accountability fostered by teamwork. [41]

• Nursing, Allied Health, and Interprofessional Team Monitoring

Collaborative interaction in healthcare is seen in literature to contribute to improved medical effects. [42]  Once an organization adopts the importance of interprofessional team interventions, proper interprofessional monitoring in systematic observation is implemented. A risk management team often achieves such tracking, a set of systems in place to detect, monitor, and prevent harm stemming from the 2005 Congress Patient Safety and Quality Improvement Act. [43]

One example of a risk management intervention is an RCA. [20]  The National Patient Safety Foundation recommends an RCA comprising diverse team members ranging from physicians and supervisors to ancillary staff and quality improvement experts. [43] [44]  Appropriate monitoring can help maximize quality improvement in healthcare, allowing organizations to effectively utilize quality improvement methods such as LEAN, PDSA, and Six Sigma.

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Disclosure: Emily Barr declares no relevant financial relationships with ineligible companies.

Disclosure: Grace Brannan declares no relevant financial relationships with ineligible companies.

This book is distributed under the terms of the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International (CC BY-NC-ND 4.0) ( http://creativecommons.org/licenses/by-nc-nd/4.0/ ), which permits others to distribute the work, provided that the article is not altered or used commercially. You are not required to obtain permission to distribute this article, provided that you credit the author and journal.

• Cite this Page Barr E, Brannan GD. Quality Improvement Methods (LEAN, PDSA, SIX SIGMA) [Updated 2024 Jan 11]. In: StatPearls [Internet]. Treasure Island (FL): StatPearls Publishing; 2024 Jan-.

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The inside story of how ChatGPT was built from the people who made it

Exclusive conversations that take us behind the scenes of a cultural phenomenon.

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When OpenAI launched ChatGPT, with zero fanfare, in late November 2022, the San Francisco–based artificial-intelligence company had few expectations. Certainly, nobody inside OpenAI was prepared for a viral mega-hit . The firm has been scrambling to catch up—and capitalize on its success—ever since.

It was viewed in-house as a “research preview,” says Sandhini Agarwal, who works on policy at OpenAI: a tease of a more polished version of a two-year-old technology and, more important, an attempt to iron out some of its flaws by collecting feedback from the public. “We didn’t want to oversell it as a big fundamental advance,” says Liam Fedus, a scientist at OpenAI who worked on ChatGPT.

To get the inside story behind the chatbot—how it was made, how OpenAI has been updating it since release, and how its makers feel about its success—I talked to four people who helped build what has become one of the most popular internet apps ever . In addition to Agarwal and Fedus, I spoke to John Schulman, a cofounder of OpenAI, and Jan Leike, the leader of OpenAI’s alignment team, which works on the problem of making AI do what its users want it to do (and nothing more).

What I came away with was the sense that OpenAI is still bemused by the success of its research preview, but has grabbed the opportunity to push this technology forward, watching how millions of people are using it and trying to fix the worst problems as they come up.

Since November, OpenAI has already updated ChatGPT several times. The researchers are using a technique called adversarial training to stop ChatGPT from letting users trick it into behaving badly (known as jailbreaking). This work pits multiple chatbots against each other: one chatbot plays the adversary and attacks another chatbot by generating text to force it to buck its usual constraints and produce unwanted responses. Successful attacks are added to ChatGPT’s training data in the hope that it learns to ignore them.       

OpenAI has also signed a multibillion-dollar deal with Microsoft and announced an alliance with Bain , a global management consulting firm, which plans to use OpenAI’s generative AI models in marketing campaigns for its clients, including Coca-Cola. Outside OpenAI, the buzz about ChatGPT has set off yet another gold rush around large language models, with companies and investors worldwide getting into the action.

That’s a lot of hype in three short months. Where did ChatGPT come from? What steps did OpenAI take to ensure it was ready to release? And where are they going next?  

The following has been edited for length and clarity.

Jan Leike: It’s been overwhelming, honestly. We’ve been surprised, and we’ve been trying to catch up.

John Schulman: I was checking Twitter a lot in the days after release, and there was this crazy period where the feed was filling up with ChatGPT screenshots. I expected it to be intuitive for people, and I expected it to gain a following, but I didn’t expect it to reach this level of mainstream popularity.

Sandhini Agarwal: I think it was definitely a surprise for all of us how much people began using it. We work on these models so much, we forget how surprising they can be for the outside world sometimes.

Liam Fedus : We were definitely surprised how well it was received. There have been so many prior attempts at a general-purpose chatbot that I knew the odds were stacked against us. However, our private beta had given us confidence that we had something that people might really enjoy.

Jan Leike: I would love to understand better what’s driving all of this—what’s driving the virality. Like, honestly, we don’t understand. We don’t know.

Part of the team’s puzzlement comes from the fact that most of the technology inside ChatGPT isn’t new. ChatGPT is a fine-tuned version of GPT-3.5, a family of large language models that OpenAI released months before the chatbot. GPT-3.5 is itself an updated version of GPT-3 , which appeared in 2020. The company makes these models available on its website as application programming interfaces, or APIs, which make it easy for other software developers to plug models into their own code. OpenAI also released a previous fine-tuned version of GPT-3.5, called InstructGPT , in January 2022. But none of these previous versions of the tech were pitched to the public. 

Liam Fedus: The ChatGPT model is fine-tuned from the same language model as InstructGPT, and we used a similar methodology for fine-tuning it. We had added some conversational data and tuned the training process a bit. So we didn’t want to oversell it as a big fundamental advance. As it turned out, the conversational data had a big positive impact on ChatGPT.

John Schulman: The raw technical capabilities, as assessed by standard benchmarks, don’t actually differ substantially between the models, but ChatGPT is more accessible and usable.

Jan Leike: In one sense you can understand ChatGPT as a version of an AI system that we’ve had for a while. It’s not a fundamentally more capable model than what we had previously. The same basic models had been available on the API for almost a year before ChatGPT came out. In another sense, we made it more aligned with what humans want to do with it. It talks to you in dialogue, it’s easily accessible in a chat interface, it tries to be helpful. That’s amazing progress, and I think that’s what people are realizing.

John Schulman: It more readily infers intent. And users can get to what they want by going back and forth.

ChatGPT was trained in a very similar way to InstructGPT, using a technique called reinforcement learning from human feedback (RLHF). This is ChatGPT’s secret sauce. The basic idea is to take a large language model with a tendency to spit out anything it wants—in this case, GPT-3.5—and tune it by teaching it what kinds of responses human users actually prefer.

Jan Leike: We had a large group of people read ChatGPT prompts and responses, and then say if one response was preferable to another response. All of this data then got merged into one training run. Much of it is the same kind of thing as what we did with InstructGPT. You want it to be helpful, you want it to be truthful, you want it to be—you know—nontoxic. And then there are things that are specific to producing dialogue and being an assistant: things like, if the user’s query isn’t clear, it should ask follow-up questions. It should also clarify that it’s an AI system. It should not assume an identity that it doesn’t have, it shouldn’t claim to have abilities that it doesn’t possess, and when a user asks it to do tasks that it’s not supposed to do, it has to write a refusal message. One of the lines that emerged in this training was “As a language model trained by OpenAI …” It wasn’t explicitly put in there, but it’s one of the things the human raters ranked highly.

Sandhini Agarwal: Yeah, I think that’s what happened. There was a list of various criteria that the human raters had to rank the model on, like truthfulness. But they also began preferring things that they considered good practice, like not pretending to be something that you’re not. 

Because ChatGPT had been built using the same techniques OpenAI had used before, the team did not do anything different when preparing to release this model to the public. They felt the bar they’d set for previous models was sufficient.       

Sandhini Agarwal: When we were preparing for release, we didn’t think of this model as a completely new risk. GPT-3.5 had been out there in the world, and we know that it’s already safe enough. And through ChatGPT’s training on human preferences, the model just automatically learned refusal behavior, where it refuses a lot of requests.

Jan Leike: We did do some additional “red-teaming” for ChatGPT, where everybody at OpenAI sat down and tried to break the model. And we had external groups doing the same kind of thing. We also had an early-access program with trusted users, who gave feedback.

Sandhini Agarwal: We did find that it generated certain unwanted outputs, but they were all things that GPT-3.5 also generates. So in terms of risk, as a research preview—because that’s what it was initially intended to be—it felt fine.

John Schulman: You can’t wait until your system is perfect to release it. We had been beta-testing the earlier versions for a few months, and the beta testers had positive impressions of the product. Our biggest concern was around factuality, because the model likes to fabricate things. But InstructGPT and other large language models are already out there, so we thought that as long as ChatGPT is better than those in terms of factuality and other issues of safety, it should be good to go. Before launch we confirmed that the models did seem a bit more factual and safe than other models, according to our limited evaluations, so we decided to go ahead with the release.

OpenAI has been watching how people use ChatGPT since its launch, seeing for the first time how a large language model fares when put into the hands of tens of millions of users who may be looking to test its limits and find its flaws. The team has tried to jump on the most problematic examples of what ChatGPT can produce—from songs about God’s love for rapist priests to malware code that steals credit card numbers—and use them to rein in future versions of the model.  

Sandhini Agarwal: We have a lot of next steps. I definitely think how viral ChatGPT has gotten has made a lot of issues that we knew existed really bubble up and become critical—things we want to solve as soon as possible. Like, we know the model is still very biased. And yes, ChatGPT is very good at refusing bad requests, but it’s also quite easy to write prompts that make it not refuse what we wanted it to refuse.

Liam Fedus: It’s been thrilling to watch the diverse and creative applications from users, but we’re always focused on areas to improve upon. We think that through an iterative process where we deploy, get feedback, and refine, we can produce the most aligned and capable technology. As our technology evolves, new issues inevitably emerge.

Sandhini Agarwal: In the weeks after launch, we looked at some of the most terrible examples that people had found, the worst things people were seeing in the wild. We kind of assessed each of them and talked about how we should fix it.

Jan Leike: Sometimes it’s something that’s gone viral on Twitter, but we have some people who actually reach out quietly.

Sandhini Agarwal: A lot of things that we found were jailbreaks, which is definitely a problem we need to fix. But because users have to try these convoluted methods to get the model to say something bad, it isn’t like this was something that we completely missed, or something that was very surprising for us. Still, that’s something we’re actively working on right now. When we find jailbreaks, we add them to our training and testing data. All of the data that we’re seeing feeds into a future model.

Jan Leike:   Every time we have a better model, we want to put it out and test it. We’re very optimistic that some targeted adversarial training can improve the situation with jailbreaking a lot. It’s not clear whether these problems will go away entirely, but we think we can make a lot of the jailbreaking a lot more difficult. Again, it’s not like we didn’t know that jailbreaking was possible before the release. I think it’s very difficult to really anticipate what the real safety problems are going to be with these systems once you’ve deployed them. So we are putting a lot of emphasis on monitoring what people are using the system for, seeing what happens, and then reacting to that. This is not to say that we shouldn’t proactively mitigate safety problems when we do anticipate them. But yeah, it is very hard to foresee everything that will actually happen when a system hits the real world.

In January, Microsoft revealed Bing Chat, a search chatbot that many assume to be a version of OpenAI’s officially unannounced GPT-4. (OpenAI says: “Bing is powered by one of our next-generation models that Microsoft customized specifically for search. It incorporates advancements from ChatGPT and GPT-3.5.”) The use of chatbots by tech giants with multibillion-dollar reputations to protect creates new challenges for those tasked with building the underlying models.

Sandhini Agarwal: The stakes right now are definitely a lot higher than they were, say, six months ago, but they’re still lower than where they might be a year from now. One thing that obviously really matters with these models is the context they’re being used in. Like with Google and Microsoft, even one thing not being factual became such a big issue because they’re meant to be search engines. The required behavior of a large language model for something like search is very different than for something that’s just meant to be a playful chatbot. We need to figure out how we walk the line between all these different uses, creating something that’s useful for people across a range of contexts, where the desired behavior might really vary. That adds more pressure. Because we now know that we are building these models so that they can be turned into products. ChatGPT is a product now that we have the API. We’re building this general-purpose technology and we need to make sure that it works well across everything. That is one of the key challenges that we face right now.

John Schulman : I underestimated the extent to which people would probe and care about the politics of ChatGPT. We could have potentially made some better decisions when collecting training data, which would have lessened this issue. We’re working on it now.

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Responsible technology use in the AI age

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