MODULE - II TQM PRINCIPLES

PRESENTED BY

Mr. M.SURESH

ASSISTANT PROFESSOR/EEE

KONGU ENGINEERING COLLEGE

PERUNDURAI – 638 052

Email Id: infostosuresh@gmail.com

Website: https://kongu.academia.edu/SureshMuthusamy

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LEADERSHIP CONCEPTS

Who is a leader?

A leader is one who instillspurposes, not one who controls bypurposes, not one who controls bybrute force. He strengthens andinspires the followers to accomplishshared goals.

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ROLE OF A LEADER

Leaders………

Shape the Organization’s value

Promote the Organization’s valuePromote the Organization’s value

Protect the Organization’s value and

Exemplifies the Organization values

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CHARACTERISTICS OF QUALITY LEADERS

• They give priority attention to external and internal customers and their needs.

• They empower, rather than control, subordinates.

• They emphasis improvement rather than maintenance.

• They emphasis prevention.

• They emphasis collaboration rather than competition.• They emphasis collaboration rather than competition.

• They train and coach, rather than direct and supervise.

• They learn from the problems.

• They continually try to improve communications.

• They continually demonstrate their commitment to quality.

• They choose suppliers on the basis of quality, not price.

• They establish organizational systems to support the quality effort.

• They encourage and recognize team effort.

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LEADERSHIP CONCEPTSA leader should have the following concepts

• People, understanding, need security and independence at the same time.

• People are sensitive to external and punishments and yet are also strongly self - motivated.

• People like to hear a kind word of praise. Catch people doing • People like to hear a kind word of praise. Catch people doing something right, so you can pat them on the back.

• People can process only a few facts at a time; thus, a leader needs to keep things simple.

• People trust their gut reaction more than statistical data.

• People distrust a leader’s rhetoric if the words are inconsistent with the leader’s actions.

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THE 7 HABITS OF HIGHLY EFFECTIVE PEOPLE :

• Be Proactive

• Begin with the End in mind

• Put First Things First

• Think Win – Win• Think Win – Win

• Seek First to Understand, then to Be Understood

• Synergy

• Sharpen the Saw (Renewal)

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ROLE OF SENIOR MANAGEMENT– Management by Wandering Around (MBWA).

– Strategy of problem solving and decision making.

– Strong information base.

– Recognition and Reward system.

– Spending most of the time on Quality.

– Communication.

– Identify and encourage potential employee.

– Accept the responsibility.

– To play a role model.

– Remove road blocks.

– 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 programmes 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 programme.

– Teach others for the betterment of society and the surroundings.8/26/2015 7

QUALITY COUNCIL

A quality council is established to provide overall direction.

Who all form the Quality Council?

Chief Executive OfficerChief Executive Officer

Senior Managers

Coordinator or Consultant

A representative from the Union

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What are the 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 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.

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A typical meeting agenda will have the following items

• Progress report on teams

• Customer satisfaction report

• Progress on meeting goals

• New project teams• New project teams

• Benchmarking report

Within three to five years, the quality council activities will become ingrained in the culture of the organization.

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QUALITY STATEMENTS

VISION STATEMENT :

• It is a short declaration of what an organization aspires to be tomorrow.

• Example :

Disney Theme Park - Happiest place on earth

Polaroid - Instant photography

• Successful visions provide a guideline for decision making

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MISSION STATEMENT :

It answers the following questions

• Who we are?

• Who are the customers?

• What we do?

How we do it?• How we do it?

It describes the function of the organization. It provides a clear statement of purpose for employees, customers & suppliers

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• A simpler mission statement is

“To meet customers transportation and distribution needs by being the best at moving their goods on time, safely and damage free”-their goods on time, safely and damage free”-National Railways

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QUALITY POLICY STATEMENT • It is guide for everyone in the organization as to how

they should provide products and services to the customers.

Common characteristics are

• Quality is first among equals

• Meet the needs of the internal & external customers

• Equal or exceed competition

• Continuously improve the quality

• Utilize the entire workforce

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STRATEGIC QUALITY PLANNING

It deals with……..

Goals – Long term planning (Eg: Win the war)

Objectives – Short term planning (Eg: Capture the bridge)

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How should the goals be?It should…

Improve customer satisfactioncustomer satisfaction, , employee employee satisfaction and processsatisfaction and process

Be based on statistical evidencestatistical evidenceBe based on statistical evidencestatistical evidence

Be measurable measurable

Have a plan or method plan or method for its achievementfor its achievement

Have a time frame for achieving the goal

Finally, it should be challenging yet achievable

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SEVEN STEPS TO STRATEGIC QUALITY PLANNING

1. Customer needs

2. Customer positioningCustomer positioning

3. Predict the future

4. Gap analysis4. Gap analysis

5. Closing the gap

6. Alignment

7. Implementation

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DEMING’S PHILOSOPHY(Chapter II-Out of the Crisis)

1. Create constancy of purpose toward improvement of productand service,with the aim to become competitive and to stay inbusiness, and to provide jobs.

2. Adopt new philosophy

3. Cease dependence on inspection to achieve quality.

4. End the practice of awarding business on the basis of price tag.4. End the practice of awarding business on the basis of price tag.Instead minimize the total cost.

5. Improve constantly and forever the system of production andservice to improve quality and productivity.

6. Institute training on job.

7. Institute leadership.

8. Drive out fear , so that everyone may work effectively for thecompany.

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9. Break down barriers between departments .Peole in research,design,salesand production must work as a team.

10. Eliminate slogans , exhortations and targets for the workforce asking forzero defects and new levels of productivity which leads to low quality andlow productivity.

11. a. Eliminate work standards (quotas) on the factory floor. Substituteleadership.

b. Eliminate management by objective. Eliminate management bynumbers , numerical goals. Substitute leadership.numbers , numerical goals. Substitute leadership.

12. a. Remove barriers that rob the hourly worker of his right to joy ofworkmanship.

b. Remove barriers that rob people in management and in engineeringof their right to joy of workmanship.

13.Institute a vigorous program of education and self improvement.

14. Put everybody in the company to work to accomplish thetransformation. The transformation is everybody's job.

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BARRIERS TO TQM IMPLEMENTATION1. Lack of commitment and attitude of the management

towards customers , employees and the society in total.

2. Unwillingness and non-involvement of the middlemanagement.

3. Lack of enthusiasm and knowledge sharing among the firstline supervisors.line supervisors.

4. Lack of empowerment , open communication system ,transparent policies , encouragement to team work andcreativity.

5. Lack of motivation and involvement of the employees toparticipate in QIPs

6. Lack of management commitment towards customersatisfaction.

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7. Not including the suppliers in the QIPs.

8. Not popularizing the fact that there is alwaysscope for improvement in all aspects ofbusiness process.

9. Lack of process orientation , TQM is processbased concept.based concept.

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PRINCIPLES OF TQM

a. Customer Satisfaction

b. Employee Involvement

c. Continuous Process Improvementc. Continuous Process Improvement

d. Supplier Partnership

e. Performance Measures

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a. CUSTOMER SATISFACTION

Customer Perception of Quality

Customer Complaints

Service Quality Service Quality

Customer retention

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Success of an organization depends on how many customers it has and how often they buy their

products or service

CUSTOMER (One who purchases

INTERNAL (Within the

organization) CUSTOMER

(One who purchases a product or service

from an organization)EXTERNAL

(Outside the organization)

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TABOUL MODEL FOR CUSTOMER SATISFACTION

COMPANY OFFER

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CUSTOMER NEEDS

CUSTOMER PERCEPTION OF QUALITY

Perceptions of customers ranked by ASQ are as follows:1. Performance - depends upon the fitness for use only if product matches the customer’s requirement.

2. Features – Secondary characteristics –psychological,ethical,technological and time oriented.

3. Service – Serving better on complaints

4. Warranty – public promise – it generates feedback to develop corrective actions.

5. Price – customer is ready to pay high for value of a product

6. Reputation – Customer retention is more important8/26/2015 26

CUSTOMER COMPLAINTS

Every single complaint should be accepted , analyzed and acted upon

More than half of the dissatisfied customer will buy again – if their complaint is heard and resolvedresolved

Focus on employee satisfaction as customer satisfaction.

Measuring the improvement in customer satisfaction is a must.

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SERVICE QUALITY• Elements of customer service are:

S.No Characteristic Expectation

1. Delivery Delivered on schedule in undamaged condition

2. Installation Proper instructions on setup for complicated products

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products

3. Use Training manuals for proper use

4. Field Repair Trained technicians to make quality repairs

5. Customer Service Friendly service representatives to answer questions

6. Warranty Clearly stated with prompt service on claims

CUSTOMER RETENTIONRetaining the customer with the business.

Determines what truly is important to the customer.

Employee retention has a significant impact Employee retention has a significant impact on high retention of customers.

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b. Employee InvolvementMotivation

Empowerment

Teams

Recognition & RewardRecognition & Reward

“ It is an activity by which employee participatein work related decisions and improvementactivities with the objective of taping thecreative energies of all the employees andimproving the motivation”

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MOTIVATIONNEEDS DRIVES INCENTIVES

(Physiological

or Psychological)

Maslow’s Hierarchy of Needs

Self-actualization – Opportunity as far as they are capableSelf-actualization – Opportunity as far as they are capable

Esteem – Pride and self-worth

Social – Part of a group or team

Security - Safe place to work/job security

Survival – food, clothing and shelter

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Herzberg ‘s Two Factor Theory on Employee Motivation

1. Motivators – Recognition , Responsibility , Achievement , Advancement and Work

2. Dissatisfiers – Salary , Fringe benefits , 2. Dissatisfiers – Salary , Fringe benefits , working Conditions , Organization politics and technical supervision

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Motivated Work ForceConcepts to achieve a motivated workforce:

1. Know yourselves

2. know your employees

3. Establish a positive attitude3. Establish a positive attitude

4. Share the goals

5. Monitor Progress

6. Develop Interesting Work

7. Communicate effectively

8. Celebrate success8/26/2015 33

EMPOWERMENT

Invest people with authority

Three conditions to create empowered environment:

Everyone must understand the need for change.Everyone must understand the need for change.

The system needs to change to reinforce andmotivate individual and group accomplishments.

The organization must enable its employees byproviding information , education and skill.

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Benefits of Empowerment

It builds confidence in workers

It generates commitment and pride among employees.

It gives employees better experience and opportunity to advance their careers.

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TEAMSA team is defined as “a group of people working together to achieve common objectives or goals”

The principles of team work force:

Clearly defined objectives or goals

A well defined time schedule should be given for completion A well defined time schedule should be given for completion

Listen to others suggestions

Maintain discipline , build team spirit and motivate each other

Everyone should work hard to see the task is completed

It should have companionship , fulfillment of personal growth and self- respect

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DIFFERENT TYPES OF TEAMS Process improvement teams

- 6 to 10 members

- Members will come from same work unit

- Life cycle – temporary

Cross functional teams Cross functional teams

- 6 to 10 members

- Members – different functional areas

- Life cycle - temporary

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Natural work teams

- All the members of the work unit and manager

- Improvement on projects are made

Self directed/self managed work teams Self directed/self managed work teams

- Extension of natural work team without the supervisor

- There is a team coordinator

- Meets daily – to plan activities and to make decisions

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Roles of Team Members

Team Leader

Facilitator

Recorder

Time KeeperTime Keeper

Member

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RECOGNITION AND REWARD

• Acknowledgement of positive contribution of an individual

• Verbal and written praises like certificates

• Reward is something tangible like dinners, • Reward is something tangible like dinners, cash awards,etc

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PERFORMANCE APPRAISAL(TEAM or INDIVIDUAL)

What is the purpose of Performance Appraisal?

To provide feedback to employees for recognition and to build on strengths and overcome their weakness.

To determine salary increases.

To identify people for promotion.

To deal with human resources legalities. To deal with human resources legalities.

APPRAISAL FORMATS:

1.Ranking – Comparison by ranking (Highest to lowest)

2.Narrative – written description of employee’s strengths and weaknesses.

3.Graphic - Performance rating of major duties with a scale(1-5)

4. Forced Choice – Categorizing with a predetermined %

(Excellent – 10% , Average – 20%....)8/26/2015 41

BENEFITS OF EMPLOYEE INVOLVEMENT

• Improves quality and increases productivity

because…

Better decision making

Implementing the process Implementing the process

Spotting and pin-pointing the areas of improvement

Immediate corrective actions

Effective communications and co-operations

Accept the changes

Increased commitment towards goals

Increases morale – feeling – I belong to the organisation

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c. CONTINUOUS IMPROVEMENT PROCESS

- To utilize the resources of the organization to achieve a quality driven culture

FEEDBACK

PROCESS MODEL FOR CONTINUOUS IMPROVEMENT

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INPUT PROCESS OUTPUT OUTCOMES

CONDITIONS

Five basic ways to improve the process

Reduce resources

Reduce errors

Meet or exceed the expectations of customers

Make the process safer

Make the process more satisfying to the person doing it

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Concepts To Be Followed To Achieve Continuous Improvement Process

1. Juran Trilogy

2. PDSA Cycle

3. 5S3. 5S

4. Kaizen

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1.JURAN TRILOGY

• Key elements are:

Quality Planning

Quality Control

Quality ImprovementQuality Improvement

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2.PDSA CYCLE

• PLAN-DO-CHECK-ACT – Shewart (Developed)

• PLAN-DO-STUDY-ACT – Deming (Modified)

7 PHASES of Problem Solving Method1. Identify the opportunity1. Identify the opportunity

2. Analyze the current process

3. Develop the optimal solution

4. Implement changes

5. Study the results

6. Standardize the solution

7. Plan for the future8/26/2015 47

3.5S – HOUSE KEEPING(Japanese)

1. SEIRI – Cleaning unnecessary items

2. SEITON – Arranging necessary items

3. SEISO – Sweeping work place and dust om machinesmachines

4. SEIKESU – Standardize Cleanliness

5. SHITSUKE – Discipline to practice the above 4S continuously

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KAIZEN and KAIRYOKAIZEN KAIRYO

•Requires investment but great effort to maintain•Involves everybody in the company

Requires investment but little effort to maintainInvolves a select few ”champions the company

•Requires recognition of effort before results•Achieved by PDCA

”champions Motivated by expected resultsTechnological and organizational break through

SUPPLIER PARTNERSHIP

1.Partnerning

2.Sourcing

3.Supplier Selection

4.Supplier Rating4.Supplier Rating

5.Relationship development

PARTNERING

• Based on the trust, dedication to common goals and objectives and understanding of each others expectations and values.

• BENEFITS:

Improved quality Improved quality

Increased Efficiency

Lower Cost

Innovation

Continuous improvement of products/services

THREE KEY ELEMENTS TO A PARTNERING RELATIONSHIP

1.Long term commitment – Investing on new equipments

2.Trust – Sharing of information and maintain confidential mattersconfidential matters

3.Shared Vision – Shared goals and objectives-mutual strategic planning.

SOURCING

3 TYPES……

1.SOLE – Only source of supply is available

2.SINGLE – Having single source for the supply of an item when many are availableof an item when many are available

3.MULTIPLE – Two or more suppliers for an item

- Better quality – competition

- Eliminates disruption of supply due to strike and other problems

SUPPLIER SELECTION

• Availability

• Cost

• Delivery

• Quality• Quality

• Safety

SUPPLIER RATING

• To obtain an overall rating of the performance of the supplier

• To ensure complete effective communication with suppliers for their performancewith suppliers for their performance

• To evaluate the supplier performance-quality,service,delivery,etc

• To enhance the relationship between the customer and supplier

RELATIONSHIP DEVELOPMENT

1. Inspection

2. Training

3. Team Approach

4. Recognition4. Recognition

PERFORMANCE MEASURES• It provides information to senior management

• Determines the success or failure of an organization

ITEMS TO BE MEASURED ARE1.Human resources

2.Customers

3.Ptoduction

4.Research and development

5.Suppliers

6.Marketing/Sales

7.Administration

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Characteristics to be measured are…

1.Quantity

2.Cost

3.Time

4.Accuracy4.Accuracy

5.Function

6.Service

7.Aesthetics

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STRATEGY-Measured by Quality council

• 1.Quality- % Reduction in poor quality costs

• 2.Cost-% increase in inventory, material management,etc

• 3.Flexibility-% reduction in cycle time,-batch • 3.Flexibility-% reduction in cycle time,-batch size,etc

• 4.Reliability-Process capability improvement

• 5.Innovation-% increase in new product development,patents,etc

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PERFORMANCE MEASURE TECHNIQUES

• 1.GRAPH

• 2.CONTROL CHART

• 3.PROCESS CAPABILITY-PCR RATIO

• 4.TAGUCHI’S LOSS FUNCTION• 4.TAGUCHI’S LOSS FUNCTION

• 5.COST OF POOR QUALITY

• 6.MALCOM BALDRIGE NATURAL QUALITY AWARD

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