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TQM

PRINCIPLES
Quality planning and
analysis
Jeffy Joseph
Adhoc Faculty, NITC

DISCLAIMER
Most

of the text content and images are


taken from several university websites
or textbooks
As these slides are intended for personal
use (as a guide for instruction) , no
explicit references are provided

NOTE FOR STUDENTS


If

there are any topics that are covered


in the class but are missing from the
slides, then that too are part of the
portions
The recommended text book for the
topics discussed : Total Quality
Management by Besterfield

TOTAL QUALITY MANAGEMENT

The way of managing organization to


achieve excellence
Total everything
Quality degree of excellence
Management art, act or way of
organizing, controlling, planning,
directing to achieve certain goals

Quality element

Previous state

TQM

Definition

Product-oriented

Customer-oriented

Priorities

Second to service and First among equals of


cost
service and cost

Decisions

Short-term

Long-term

Emphasis

Detection

Prevention

Errors

Operations

System

Responsibility

Quality Control

Everyone

Problem solving

Managers

Teams

Procurement

Price

Life-cycle costs

Managers role

Plan, assign, control,


and enforce

Delegate, coach,
facilitate, and mentor

SCOPE OF TQM
TQM
Principles &
Practices
Leadership
Customer
satisfactio
n
Employee
improvemen
t
Continuous
improvemen
t
Supplier
partnershi
p
Performance
measures

Tools &
Techniques
Quantitative
SPC
Acceptance
Sampling
Reliabilit
y
Experimental
design
FMEA
QFD

Non-quantitative
ISO 9000
ISO 14000
Benchmarkin
g
Total
productiv
e
Management
maintenan
tools
ce
Concurrent
engineering

ELEMENTS OF TQM
Philosophical
Generic

elements

tools
Tools used by QC department

PRINCIPLES OF TQM
Leadership
Customer

satisfaction
Employee involvement
Continuous process improvement
Supplier partnership
Performance measures

#1 LEADERSHIP

Top management must realize


importance of quality
Quality is responsibility of everybody,
but ultimate responsibility is CEO
Quality excellence becomes part of
business strategy
Lead in the implementation process

CHARACTERISTICS OF
SUCCESSFUL LEADERS
1.
2.

3.
4.
5.

Give attention to external and internal


customers
Empower, not control subordinates.
Provide resources, training, and work
environment to help them do their jobs
Emphasize improvement rather than
maintenance
Emphasize prevention
Encourage collaboration rather than
competition

CHARACTERISTICS OF
SUCCESSFUL LEADERS
6.
7.
8.
9.
10.
11.
12.

Train and coach, not direct and supervise


Learn from problems opportunity for
improvement
Continually try to improve communications
Continually demonstrate commitment to
quality
Choose suppliers on the basis of quality, not
price
Establish organisational systems that supports
quality efforts
Encourage and recognize team effort

IMPLEMENTATION
PROCESS

Must begin from top management, most important CEO


commitment
Cannot be delegated (indifference, lack of involvement cited
as principle reason for failure)
Top/senior management must be educated on TQM philosophy
and concepts, also visit successful companies, read books,
articles, attend seminars
Timing of implementation is the org ready, re-organization,
change in senior personnel, current crisis then need to
postpone to favourable time
Need a roadmap/framework for implementation
Formation of Quality Council policies, strategies,
programmes

IMPLEMENTATION
PROCESS
Quality council job
1.

2.

3.
4.
5.

6.

7.

8.

Develop core values, vision statement, mission statement, and quality


policy statement
Develop strategic long-term plan with goals and annual quality
improvement program with objectives
Create total education and training plan
Determine and continually monitor cost of poor quality
Determine performance measures for the organization, approve them for
functional areas, and monitor them.
Continually determine projects that improve processes, particularly those
affect external and internal customer satisfaction
Establish multifunctional project and departmental or work group teams and
monitor progress
Establish or revise the recognition and reward system to account new way
of doing business. Must begin from top management, most important CEO
commitment

IMPLEMENTATION
PROCESS
Core values
- foster TQM behaviour and define the culture
- need to develop own values
Examples from Malcolm Baldrige National Quality Award
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.

Customer-driven excellence
Visionary leadership
Organizational and personal learning
Valuing employees and partners
Agility
Management for innovation
Management by fact
Systems perspective
Social responsibility
Focus results and creating value

#2 CUSTOMER SATISFACTION
Customer is always right in Japan
customer is King
Customer expectations constantly
changing 10 years ago acceptable, now
not any more!
Need to continually examine the quality
systems and practices to be responsive to
ever changing needs, requirements and
expectations Retain and Win new
customers

ISSUES FOR CUSTOMER


SATISFACTION
Checklist for both internal and external
customers
1.
Who are my customers?
2.
What do they need?
3.
What are their measures and expectations?
4.
Does my product/service exceed their
expectations?
5.
How do I satisfy their needs?
6.
What corrective action is necessary?

DIMENSIONS OF
QUALITY
Performance
Features
Conformance
Reliability
Durability
Service
Response
Aesthetics
Reputation

CUSTOMER PERCEPTION OF
QUALITY
1.
2.
3.
4.
5.
6.

Performance
Features
Service
Warranty
Price
Reputation

Tebouls model of customer


satisfaction

CUSTOMER FEEDBACK
Feedback

enables the organization to:

Discover customer dissatisfaction.


Discover relative priorities of quality
Compare performance with the
competition.
Identify customers needs.
Determine opportunities for improvement.

INFORMATION COLLECTING
TOOLS
Comment

Cards
Questionnaires
Focus Groups
Toll-free Telephone Lines
Customer Visits
Report Cards
The Internet
Employee Feedback

CUSTOMER RETENTION
Customer

retention is the process of


retaining the existing customers. It is
obvious that customer retention is more
powerful and effective than customer
satisfaction.
Customer care can be defined as
every activity which occurs within an
organization that ensures that a
customer is not only satisfied but also
retained.

SOME INTERESTING RESEARCH


FINDINGS
Over 60% of an organizations future revenue will come from
existing customers.
A 2% increase in customer retention has an equivalent impact
upon profitability as a 10% reduction in operating costs.
Up to 96% of unhappy customers do not in fact complain. But
they are three times more likely to communicate a bad
experience to other customers than a good one.
91% of the unhappy customers will never purchase goods and
services from you again.
If you make an effort to remedy customers complaints, 82 to
95% of them will stay on with you.
It costs 5 times as much to attract a new customer as it costs
to keep an old one.

PRINCIPLE #3 EMPLOYEE
INVOLVEMENT

IMPORTANCE OF EMPLOYEE MOTIVATION

Motivation improves employee involvement.


Motivation promotes job satisfaction and thus
reduces absenteeism and turnover.
Motivation helps in securing a high level of
performance and hence enhances efficiency
and productivity.
Motivation creates a congenial working
atmosphere in the organization and thus
promotes interpersonal cooperation.

THEORIES OF MOTIVATION
Maslows

Hierarchy of Needs

Human motivation is a hierarchy of five


needs

THEORIES OF MOTIVATION

THEORIES OF MOTIVATION

Herzbergs Two Factor Theory

two factors:

1. Motivation factors or satisfiers

2. Hygiene factors or dis-satisfiers

Provides satisfaction; no dis-satisfaction in its


absence
Reasonable level of satisfaction

In the class I wrongly mentioned dissatisfiers as satisfiers. Please take a note


of that and correct it.

EMPLOYEE EMPOWERMENT
Empowerment

authority

is investing people with

PRINCIPLES OF EMPLOYEE
EMPOWERMENT
Tell people what their responsibilities are.
Give them authority equal to the responsibility assigned to
them.
Set standards of excellence.
Provide them with training that will enable them to
maintain standards.
Give them knowledge and information.
Provide them with feedback on their performance.
Trust them and create trust worthiness in the organization.
Allow them to fail but guide them and counsel them when
needed.
Treat them with dignity and respect.

CONDITIONS TO CREATE THE


EMPOWERED ENVIRONMENT
Everyone

must understand the need for

change.
The system needs to change to the new
paradigm.
The organization must provide
information, education, and skill to its
employees.

CHARACTERISTICS OF
EMPOWERED EMPLOYEES
They feel responsible for their own task.
They are given a free hand in their work.
They balance their own goals with those of the
organization.
They are well trained, equipped, creative, and
customer oriented.
They are critical, have self-esteem, and are
motivated.
They are challenged and encouraged.
They monitor and improve their work continuously.
They find new goals and change challenges.

RECOGNITION AND REWARD


Recognition

is a process whereby
management shows acknowledgement
of an employees outstanding
performance

WAYS TO RECOGNIZE PEOPLE


1. Recognition can be expressed using verbal and written
praise.
2. Rewards may be in the form of certificates and plaques.
3. Reward is normally in the form of cinema tickets, dinner
for family etc.
4. The financial compensation (for recognition) can be paid
in terms of increased salaries, commissions, gain sharing
etc.
5. The efforts of employees can be recognized by
promotions, special job assignments etc.
6. A letter of appreciation from the CEO or the Top
Management will increase the employee s involvement.

WAYS TO RECOGNIZE PEOPLE


7. Reward may be delayed but recognition
should be in a timely basis.
8. Rewards should be appropriate to the
improvement level.
9. People like to be recognized than any reward.
10.Special forms of recognition include pictures
on the bulletin board, articles in news letters,
letter to families etc.
11.Supervisors can give on-the-spot praise for a
job which is done well.

IMPORTANCE OF RECOGNITION
AND REWARD
Improve

employees morale
Show the companys appreciation for
better performance
Create satisfied workplace
Create highly motivated workplace
Reinforce behavioral patterns
Stimulate creative efforts

REWARD

Reward is a tangible one, such as


increased salaries, commissions, cash
bonus, gain sharing, etc to promote
desirable behavior

TYPES OF REWARDS
Intrinsic

rewards
Extrinsic rewards

INTRINSIC REWARDS
1. Non-monetary forms of recognition to
acknowledge achievement of quality improvement
goals.
2. Celebration to acknowledge achievement of
quality improvement goals.
3. Regular expressions of appreciation by managers
and leaders to employees to acknowledge
achievement of quality improvement goals.
4. 360 degree performance appraisals feedback
from co-workers subordinates to customers is
incorporated into performance appraisals.

EXTRINSIC REWARDS
PROFIT

SHARING
GAIN SHARING
EMPLOYMENT SECURITY
COMPENSATION TIME
INDIVIDUAL BASED PERFORMANCE
SYSTEMS
QUALITY BASED PERFORMANCE
APPRAISALS

PERFORMANCE APPRAISAL
The

performance appraisal is used to let


employees know how they are
performing

APPRAISAL FORMATS
Ranking
Narrative
Graphic
Forced

Choice

TEAMS
Employee involvement is optimized by the
use of teams
WHY TEAMS WORK :

Many heads are more knowledgeable than one.


The whole is greater than the sum of its
members.
Team members develop a rapport which each
other.
Teams provide the vehicle for improved
communication

TYPES OF TEAMS
Process

improvement team.
Cross functional team.
Natural work teams.
Self Directed / Self Managed work
teams

CHARACTERISTICS OF
SUCCESSFUL TEAMS
Sponsor
Team Charter
Team Composition
Training
Ground Rules
Clear Objectives
Accountability
Well-Defined decision procedure
Resources
Trust
Effective Problem Solving
Open Communication
Appropriate Leadership
Balanced Participation

STAGES OF TEAM
DEVELOPMENT
Farming
Storming
Norming
Performing
Maintenance
Evaluating

BARRIERS TO TEAM PROGRESS


1. Insufficient training
2. Incompatible rewards and compensation
3. First-line supervisor resistance
4. Lack of planning
5. Lack of management support
6. Access to information systems
7. Lack of union support
8. Project scope too large
9. Project objectives are not significant
10. No clear measures of success
11. No time to do improvement work

BENEFITS OF EMPLOYEE
INVOLVEMENT

Employee involvement improves quality


and increases productivity

Employees make betterdecisions using their


expert knowledge of the process.
Employees are more likely to implement and
support decisions they had a part in making.
Employees are better able to spot and
pinpoint areas of for improvement.
Employees are better able to take immediate
corrective actions.

BENEFITS OF EMPLOYEE
INVOLVEMENT

Employee involvement improves quality and


increases productivity

Employee involvement reduces


labour/management friction by encouraging more
effective communication and cooperation.
Employee involvement increases morale by
creating feeling of belonging to the organization.
Employees are better able to accept change
because they control the work environment.
Employees have an increased commitment to unit
goals because they are involved

PRINCIPLE #4 - CONTINUOUS
PROCESS IMPROVEMENT
Continuous

process improvement is
designed to utilize the resources of the
organization to achieve a quality-driven
culture

WAYS TO IMPROVE
Reduce

resources
Reduce errors
Meet or exceed customer expectations
of downstream customers
Make the process safer
Make the process more satisfying to the
person doing it

THE JURAN TRILOGY


Quality

Define customers and their needs


Define requirements and produce it
Multi disciplinary teams

Quality

Planning

Control

Set performance measures


Get feedback

THE JURAN TRILOGY


Quality Improvement
There are four different strategies to improvement
that could be applied during this phase:

Repair: Reactive; fix whats broken.


Refinement: Proactive; continually improve a process
that isnt broken (like the continual pursuit of perfection
in Lean!)
Renovation: Improvement through innovation or
technological advancement
Reinvention: Most demanding approach; start over with
a clean slate.

TYPES OF PROBLEMS
Compliance
Unstructured
Efficiency
Process

design
Product design

PDSA CYCLE (OR DEMING


WHEEL)
Developed

by Walter A. Shewart
Popularized by Edward Deming
It is an effective continuous
improvement technique

KAIZEN
Value added and non-value added activities
Muda
Motion study
Materials handling
Documentation
5s
Visual management
JIT
Poka yoke
Team dynamics

MUDA
Over

production
Delay
Transportation
Processing
Inventory
Wasted motion
Defective parts

VISUAL MANAGEMENT
Eg:

Andon

5s

BEFRORE AND AFTER

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