UNIT - II
TQM PRINCIPLES
LEADERSHIP
LEADERSHIP
• Leadership is the process of influencing others towards
the accomplishment of goals.
• Leadership is lifting of mans vision to higher sights, the
raising of mans performance to a higher level.
• Leaders create clear and visible quality values and
integrate those values into the organizational strategy.
Characteristics of Quality Leaders
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5.
6.
7.
The customer first - listen customers
Value people – peoples skills and capabilities
Build supplier partnership
Empower people – train and coach
Demonstrate involvement/commitment
Strive for excellence
Explain and deploy policy
8. Improve communication
9. Promote teamwork
10.Benchmark continuously
11.Establish system
12.Encourage collaboration
Leadership Styles for Effective Leaders
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Directing Style of Leadership
Consultative Style of Leadership
Participative Style of Leadership
Delegating Style of Leadership
Requirements of Effective Leaders
Five core leadership skills required for effective
leadership are
• Vision
• Empowerment
• Institution
• Self understanding
• Value congruence
Role of TQM Leaders
• Study TQM and investigate how TQM is implemented
elsewhere
• Establish policies related to TQM.
• Establish “priority of quality‟ and “customer satisfaction‟ as
the basic policy.
• Assume leadership in bringing about a cultural change.
.
• Check whether the quality improvement
programs are conducted as planned.
• Become coaches and cheer leaders to
implement TQM.
• Generate enthusiasm for TQM activities.
• Visit other companies to observe TQM
functioning.
• Attend TQM training program.
• Teach others for the betterment of society and
the surroundings
Strategic Quality Planning
• It sets the long term direction of the
organization in which to proceed in future.
• Strategic planning is the process of envisioning
the organization's future and developing the
necessary goals, objective and action plan to
achieve that future.
Goals should
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Improve customer satisfaction, employee satisfaction
Be based on statistical evidence
Be measurable
Have a plan or method for its achievement
Have a time frame for achieving the goal
Finally, it should be challenging yet achievable
Strategic Quality Planning Process
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Identification of customer needs
Determination of customer position
Predict the future
Gap analysis
Closing the gap
Align the plan with mission and vision
Implementation of the plan
Quality Council
• Quality council is a team to provide overall
direction for achieving the total quality
culture.
The quality council is composed of
 CEO
 Senior managers
 Quality council coordinator
Objective of the Quality council
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To raise the quality consciousness of the organization
To ensure the effective functioning of the organization
To encourage basic and applied R&D in the field of quality
To raise the level of training of personnel engaged in quality
activities
• To facilitate upgradation of testing, calibration and
laboratories facilities
Duties of the council
• Develop the core values, vision statement, mission
statement and quality policy statement
• Develop the strategic long term plan with goals and
Annual Quality Improvement Program with objectives
• Create the total education and training plan
• Determine and monitor the cost of poor quality
• Determine the performance measures
• Determine projects those improve the process
• Establish multifunctional project and work group teams
• Revise the recognition and rewards system
Employee Involvement
• Its is the back bone of TQM movement
• An effective TQM effort requires the total
involvement from every person at all levels in
the organization
• Some of the important aspect of employee
involvement are
»Employee Empowerment
»Employee Motivation
»Team and Teamwork
»Recognition and Reward Schemes
»Performance Appraisal
Employee Empowerment
• Empowerment is opposite of helplessness.
• The verb empowers means ‘to give ability or
authority
• “Empowerment is an environment which people
have the ability, the confidence and the
commitment to take responsibility and ownership
to improve the process and initiate the necessary
steps to satisfy the customer requirements”.
General principles for Empowering
Employees
• Tell the people about their responsibilities.
• Give them authority equal to the responsibility
assigned to them.
• Set standard of excellence.
• Provide them with training that will enable
them to maintain standard.
• Give them knowledge and information
• Provide them with the 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.
Condition to create the Empowered
Environment
• Everyone must understand the change.
• The system needs to change to the new
paradigm.
• The organization must provide information,
education, and skill to its employee.
Characteristics of Empowered
Employee
• They feel responsible for their own task.
• They are given a free hand in their work.
• They are well trained, equipped, creative and
customer oriented.
• They are critical, self esteem, and are
motivated.
• They are challenged and encouraged.
• They find new goals and change challenges
Employee Motivation
• Stimulating people to accomplish goals.
• Including people inner drives and action
towards certain goals and committing their
energies to achieve these goals.
Importance of Motivation
• Improves employee involvement
• Promotes job satisfaction
• Securing a high level of performance and
enhances efficiency and productivity
• Creates a congenial working atmosphere in
the organization
Theories of Motivation
In order to understand and improve the
employee involvement, it is necessary to
assimilate the underlying theories of motivation
1. Maslow’s hierarchy theory
2. Herzberg’s two factor theory
Herzberg’s two factor theory
Herzberg’s two factor theory is also called as
“motivation-hygiene theory”
This theory is based on two factors
1. Motivational factors or satisfiers
2. Hygiene factors or dissatisfies
Team and Teamwork
• Team: A group of people working together to
achieve common objectives or goals.
• Teamwork: A cumulative action of the team
during which each member of the team
subordinates his individual interests and
opinions to fulfill the objectives or goals of
the group.
Benefits of teamwork
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Improved solution to quality problem.
Improved ownership of solution.
Improved communication.
Improved integration.
Types of Team
1.
2.
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4.
Process improvement team
Cross-functional team
Natural work team
Self-directed/Self-managed work team
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
Cohesiveness
Role of Team Members
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Devote themselves to the common team goals
Feel themselves responsible and equal
Be interested and motivated
Accept, appreciate and respect each other
Give high priority to continuous improvement
Participate actively with the activities of the
team
 Offer views, opinions and ideas freely and
voluntarily.
 Trust, support, understand and have a
genuine concern for other team members
 Attend training seriously with a receptive
attitude
 Abide by the decision taken by the team
 Encourage feedback on own behavior
Make personal improvement a routine
Stages of Team Development
Barriers to Team Progress
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Insufficient training
Incompatible rewards and compensation
Lack of planning
Lack of management support
Lack of union support
Project scope to large
Project objectives are not significant
No clear measure of success
Recognition and Reward
Recognition: It is a process by whereby
management shows acknowledgement of an
employee outstanding performance
Reward: It is a tangible one, such as increased
salaries, commission, cash bonus, gain sharing
etc., in order to promote desirable behavior
Why should one Recognize Employee
• Improve employee morale
• Show the company appreciation for better
performance
• Create satisfied workplace
• Create highly motivated workplace
• Reinforce behavioral patterns
• Stimulate creative efforts
Types of Rewards
• Intrinsic reward
• Extrinsic reward
Ways to recognize people
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Send letters
Develop a “behind the scene” award
Create best ideas of the year
Feature the quality team of the month
Honor the peers
Invite a team for coffee or a lunch
• Take interest in employees development
• Send a team to special seminars
• Ask your boss to send a letter of
acknowledgement
• Have a stock of small gifts
• Promote or nominate for promotion
• Get your team picture in the company news
letter
Performance Appraisal
• It is systematic and objective assessment or
evaluation of performance and contribution of
an individual
Need of Performance Appraisal
• To identify employees for salary revision,
promotion, transfer, demotion and lay off
• To determine training and development needs of
the employee
• To motivate employees
• To know personal strength and weakness
• To make the supervisors and executive more
observant of their subordinate
Process of Performance Appraisal
Benefits of Performance Appraisal
• It provides useful feedback to the employee.
• It helps in understanding the pay adjustment,
increment and bonuses.
• It provides basis for employee for promotion,
transfer and demotion.
• It helps the employee to plan the carrier.
• It puts a short of pressure on people for better
performance since he is being continuously
observed.
Continuous Process Improvement
• Process refers to business and production
activities of an Organization.
• Processes for improvement- eg. Design &
Manufacturing, Marketing, Stores & Purchase
etc.
Input Output Process Model
Juran’s Quality Trilogy
• Juran divides quality management into three
managerial process.
»Quality planning
»Quality control
»Quality improvement
Quality planning
Quality control
Quality improvement
• Build awareness of need and opportunity for
improvement
• Set goals for improvement
• Organize to reach your goals
• Provide training
• Carry out projects to solve problems
• Report progress
• Give recognition
• Communicate result
• Keep score
• Maintain momentum by making annual improvement
part of the regular process of the company.
Types of Quality Problems
1.
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3.
4.
5.
Compliance problems
Unstructured problems
Efficiency problems
Process-Design problem
Product-Design problem
Improvement Strategies
( Four R’s of improvement strategies )
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2.
3.
4.
Repair strategy
Refinement strategy
Renovation strategy
Reinvention strategy
PDCA cycle
• PDCA (plan-do-check-act, sometimes seen as
plan-do-check-adjust) is a repetitive four-stage
model for continuous improvement (CI) in
business process management.
• The model is implemented to improve the quality
and effectiveness of processes within product
lifecycle management, project management,
human resource management (HRM), supply
chain management (SCM) and many other areas
of business.
Continuous process improvement
cycle using PDCA cycle
Benefits of PDCA cycle
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Daily routine management
Problem solving process
New product development
Human resource development
Project management
Continuous development
Vendor development
Process trails
‘5S’ Housekeeping
• 5S is a philosophy and a way of organizing and
managing the workspace and work flow with
the intent to improve efficiency by
eliminating waste, improving flow and
reducing process unreasonableness
Japanese
term
Seiri
Seiton
Seiso
Seiketsu
Sitsuke
English
term
Sort
Set
Shine
Standardize
Sustain
Meaning
Separate out all unnecessary things and
eliminate them
Arrange the essential things in order, so
that they can be easily accessed
Clean the work place every thing without
fail
Standardizing the way of maintain
cleanliness
Practice FIVE S daily. Make it a way of life.
This also means commitment.
Objective 5S
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Neat and clean work place
Productivity
Safety
Work commitment
Standardize work efficiency
KAIZEN
• In Japanese: kai, which means 'change‘,
and zen, which means 'good'
• Kaizen is a Japanese word for “continuous
improvement or improvement over
improvement”
• It is the process of continuous improvements
in small increments that make the process
more efficient, effective, controllable and
adequate.
KAIRYO
• It means large size technological changes or
upgrade.
• It describe improvement through innovation.
• Improvements in one or two great jumps and
it does not allow constant improvement.
Kaizen
kariyo
Effect
Long term and long lasting,
Short term, but dramatic
but undramatic
Pace
Small steps
Big steps
Intermittent
Time frame Continuous and incremental incremental
Change
Gradual and constant
Involvement Everybody
and
Abrupt and volatile
Select few champions
non
Kaizen
Approach
kariyo
Collectivism, group efforts, Rugged
individualism,
system approach
individual ideas and efforts
Mode
Maintenance
improvement
and
Spark
Technological
break
Conventional know how and
thoughts, new invention,
state of art
new theories
Scrap and rebuild
Requires large investment,
Requires little investment,
Practical
but little effort to maintain
but great effort to maintain
it
requirements it
Effort
orientation
People
Evaluation
criteria
Process and effort for better
Results for profits
results
Advantage
Works well in slow growth Better suited to fast growth
economy
economy
Technology
Aspect of kaizen
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Total employee involvement
Labor and management relationship
Effective leadership
Adaptability to changing environment
Reducing waste
Customer oriented
Quality awareness
Features of Kaizen
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Value added work activities
Reducing the waste
Principles of motion study and cell technology
Principle of material handling and one pieceflow
• Documentation of standard operating
procedure
• Implementation of 5 S
• Visual management by means of visual display
• Poka-Yoke to prevent or detect error
• Team dynamics which include problem soving,
communication skills and conflict resolution
Role of people implementing in
Kaizen
• Top management should be committed
• The executive just below the top management
must formulate and carry the kaizen goals
• Supervisor must use and follow kaizen
activities
• Workers must be involved in kaizen
Quality Circles
A group of employees who meet regularly
to consider ways of resolving problems and
improving production in their organization.
"A Quality Circle is volunteer group
composed of members who meet to talk about
workplace and service improvements and make
presentations to their management with their
ideas."
Quality Circle Attributes
• Participation management
• Human resource development techniques
• Problem solving technique
Objective of quality circles
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Promote job involvement
Create problem solving capability
Improve communication
Promote leadership qualities
Promote personal development
Develop a greater awareness for cleanliness
Develop greater awareness for safety
Improve morale through closer identity of
employee objectives with organization’s
objectives
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Reduce errors.
Enhance quality
Inspire more effective team work
Build an attitude of problem prevention
Promote cost reduction
Develop harmonious manager, supervisor and
worker relationship
• Improve productivity
• Reduce downtime of machines and equipment
• Increase employee motivation
Characteristics of Quality Circles
• Optimum number of employee is between 6 to
10
• It should have a homogeneous group
• Participation of the members should be voluntary
• They should meet regularly
• They should identified the problem
• Members should be trained
• Every decision should be accepted by the
management before implementation
Elements of Quality Circles
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Top management
Steering committee
Facilitator
Leader/Deputy leader
Members
Non-members
Process of Quality Circles Operation
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Problem identification
Problem selection
Problem analysis
Generate alternative solution
Select the most appropriate solution
Prepare plan of action
Present solution to management
Implementation of solution
Benefits of Quality Circles
• Hurdles in work get resolved by the grass root
• Organization can easily undertake more
difficult and challenging assignments for its
growth and profit.
• As the employees gain experience they take
more challenging projects
• Cost reduction.
• Increased productivity.
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Improved quality.
Better communication.
Better house-keeping.
Increased team work.
Smooth working.
Better mutual trust.
Greater sense of belongingness.
Increased safety.
Better human relations.
Limitation of Quality Circles
• Participation is not always voluntary in all case
• Participation fades away if it lacks the top
management support
• No involvements of trade union
Ishikawa's Ten Principles for
Customer/Supplier Relations
• Both the customer and the supplier are fully responsible for
the control of quality.
• Both the customer and the supplier should be independent
of each other and respect each other's independence.
• The customer is responsible for providing the supplier with
clear and sufficient requirements so that the supplier can
know precisely what to produce.
• Both the supplier and the customer should enter into a no
adversarial contract with respect to quality, quantity, price,
delivery method, and terms of payments.
• The supplier is responsible for providing the quality that will
satisfy the customer and submitting necessary data upon the
customer's request.
• Both the customer and the supplier should decide the
method to evaluate the quality of the product or service to
the satisfaction of both parties.
• Both the customer and the supplier should establish in the
contract the method by which they can reach an amicable
settlement of any disputes that may arise.
• Both the customer and the supplier should continually
exchange information, sometimes using multifunctional
teams, in order to improve the product or service quality.
• Both the customer and supplier should perform business
activities such as procurement, production and inventory
planning, clerical work, and systems so that an amicable and
satisfactory relationship is maintained.
• When dealing with business transactions, both the customer
and supplier should always have the best interest of the end
user in mind.
Supplier Partnership
Partnering is a long-term commitment between
two or more organizations for the purpose of achieving
specific business goals & objectives
The relationship of customer and supplier should
be based upon trust, dedication to common goal and
objective, and an understanding of each party’s
expectation and values
Benefits of Partnering
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Improved Quality,
Increased efficiency,
Lower cost,
Increased productivity
Increased opportunity for innovation, &
Continuous improvement of products and
services
• Increased market share
Japanese View on Partnering
• The Japanese partnering concept is keirestu
• The key point is developing a long term
relationships with a key suppliers rather than
having a short term relationship with many
suppliers.
key elements of Partnering
The three key elements of partnering are:
»Long-term commitment.
»Trust.
»Shared vision.
Long-term commitment
 Long-term commitment provides the needed environment
for both parties to work toward continuous improvement.
 Total organization involvement is necessary, CEO to the
workers.
 Each party contributes its unique strengths to the process.
 A supplier may only take risks in a long-term commitment.
 Dependency appears as a national consequence in a long
term commitment, it is not a sign of weakness, but a sign of
strength of the relationship and is necessary for competitive
advantage.
Trust
 The strength of Partnering is based on fairness and parity.
 Trust enables the resources and knowledge of each
partner to be combined to eliminate an adversarial
relationship.
 Mutual trust forms the basis for a strong working
relationship.
 Open and frequent communication avoids misdirection,
disputes and strengthens the relationship.
 The parties may share or integrate resources such as
training activities, administrative systems and equipment.
Shared Vision
 Each of the partnering organizations must understand the
need to satisfy the final customer.
 There should be an open and candid exchange of needs and
expectations.
 Shared objectives and goals ensure a common direction
aligned with each parties’ mission.
 Partners must understand each other’s business so that
equitable decisions are made.
 These decisions must be formulated and implemented as a
team.
SOURCING
There are three types of sourcing:
 Sole sourcing
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Organization is forced to use only one supplier.
o
Technical specifications, patents, raw material location, etc.
cause this kind of sourcing.
o
Partnering is a natural consequence, to benefit the end user.
 Multiple sourcing
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Two or more suppliers for an item are used.
o
Competition will result in better quality, lower costs and
better service.
o
It eliminates disruption of supply due to strikes etc.
 Single sourcing
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A planned decision by the organization to select one supplier
for an item when several sources are available.
o
Advantages for the organizations include reduced cost,
complete accountability, supplier loyalty, partnering and a
better end product with less variability.
o
Advantages for the supplier include new business from the
customer, reduced cost of the business and production
processes.
o
It has allowed organization to reduce their supplier base.
Stages in Supplier Selection and
Evaluation
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Survey stage
Enquiry stage
Negotiation and selection stage
Experience stage
ishikawa's 10 conditions for selection
and evaluation of suppliers
1. Supplier
knows management policy of the
organization.
2. Stable
management
respected by others.
system
of
supplier
,
3. Supplier has the capability of dealing with
technological innovations.
4. Supplier can supply material meeting quality
specifications.
5. Supplier has capability to meet the amount of
production.
6. Supplier can breach corporate secrets.
7. The
supplier is easily accessible in terms of
transpiration and communication.
8. The supplier is sincere in implementing the contract
provisions.
9. The supplier has an effective quality system and
improvement program.
10. The
supplier has a track record of customer
satisfaction and organization credibility.
Supplier Certification
• The supplier certification process starts only
after the supplier begins shipment of the
product to the organization
Some benefits are
• Elimination of receiving inspection
• Creation of customer and supplier partnership
• Reduced the number of suppliers that reduces
the overhead costs
Supplier Certification Criteria
Customer and supplier shall have agreed on
specifications which are mutually developed,
justifiable, and not ambiguous.
2. Supplier shall have no product-related lot
rejection for a significant period of time.
3. Supplier shall have no non-product related
rejections for a stated period of time.
1.
4. Supplier shall have no negative non-product
5.
6.
7.
8.
related incidents for a stated period of time.
Supplier shall have a fully documented
quality system. (ISO 9000)
Supplier shall have successfully passed an
on-site system evaluation.
Supplier must make inspections and tests.
(Laboratory results & SPC are used)
Supplier shall have the ability to timely
provide inspection and test data.
Supplier Rating
• A supplier rating system also referred as a
Scorecard system, which is used to obtain
overall rating of suppliers performance
• Usually suppliers rating is based on quality,
price, performance and production capability
Objective of Supplier Rating
 To
obtain an overall rating of supplier
performance.
 To ensure communication with suppliers in the
areas of quality, service, delivery and other
desired measures.
 To provide supplier with a detailed and factual
record of problems for corrective action.
 To enhance the relationship between the
customer and the supplier.
Relationship Development
• It refers to maintaining and improving the
growth of the customer-supplier relationship
• It can be developed through
»Inspection
»Training
»Team approach