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It is the art of managing the whole to achieve excellence. It is defined both a philosophy and a set of guiding principles that represent the foundation of a continuously improving organization. It is the application of quantitative methods and human resources to improve all the processes within an organization and exceed customer needs now and in the future. It integrates fundamental management techniques, existing improvement efforts, and technical tools under a disciplined approach. You can also write Juran or Deming's definition given in the class lectures
2. Define Quality? Conformance to specifications Fitness for purpose Customer satisfaction Quality = Performance x Expectations Also you can write ISO definition quality. (Pooh..., after all any definition to quality is only subjective...) 3. What are the Dimensions of Quality?
Performance Features Conformance Reliability Durability Service Response Aesthetics Reputation
4. Give the Basic Concepts of TQM?
§ A committed and involved management to provide long-term top-to-bottom organizational support. § An unwavering focuses on the customer, both internally and externally. § Effective involvement and utilization of the entire work force. § Continuous improvement of the business and production process. § Treating suppliers as partners. § Establish performance measures for the processes.
5. State Deming Philosophy? 1. Create and publish the aims and purposes of the organization. 2. Learn the new philosophy. 3. Understand the purpose of inspection. 4. Stop awarding business based on price alone. 5. Improve constantly and forever the system. 6. Institute training. 7. Teach and institute leadership. 8. Drive out fear, Create trust and create a climate for innovation. 9. Optimize the efforts of teams, groups and staff areas. 10. Eliminate exhortations for the work force. 11. Eliminate numerical quotes for the work force. 12. Eliminate management by objective. 13. Remove barriers that rob people of pride of workmanship. Encourage education and self-improvement for everyone. 14. Take action for accomplish the transformation. (Do explain these points appropriately in the case of Part-B questions) 6. Give the Principles of TQM? 1. Constancy of purpose: short range and long range objectives aligned 2. Identify the customer(s); Customer orientation 3. Identification of internal and external customers 4. Continuous improvement 5. Workflow as customer transactions 6. Empower front-line worker as leader 7. Quality is everybody’s business 8. For a service industry, some elements of quality are: - empathy - trust; i.e. expertise, integrity, courtesy - responsiveness - tangible product attractiveness (curb appeal) - reliability, on time, no interruptions Brief explanation required in the case of part-B answer. 7. Give the Obstacles associated with TQM Implementation?
Lack of management commitment Inability to change organizational culture Improper planning Lack of continuous training and education Incompatible organizational structure and isolated individuals and departments Ineffective measurement techniques and lack of access to data and results. Paying inadequate attention to internal and external customers.
Inadequate use of empowerment and teamwork.
8. Give the Analysis Techniques for Quality Costs? I. Trend Analysis ii. Pareto Analysis 9. Define Quality Costs? Quality Costs are defined as those costs associated with the non-achievement of product or service quality as defined by the requirements established by the organization and its contracts with customers and society. Or stated simply cost of poor quality products.
10. Give the primary categories of Quality cost? PAF costs I. Preventive cost category ii. Appraisal cost category iii. Internal failure cost category IV. External failure cost category 11. Give the sub-elements of Preventive cost category?
I. Marketing/Customer/User ii. Product/Service/Design development iii. Purchasing IV. Operations/ v. Quality Administration VI. Other Prevention Costs 12. Give the sub-elements of Appraisal cost category? I. Purchasing appraisal cost ii. Operations appraisal cost iii. External appraisal cost IV. Review of test and application data v. Miscellaneous quality evaluations 13. Give the sub-elements of Internal failure cost category? I. Product or Service Design costs (Internal) ii. Purchasing failure costs iii. Operations failure costs 14. Give the sub-elements of External failure cost category? I. Complaint investigations of customer or user service ii. Returned goods
iii. Retrofit and recall costs IV. Warranty claims v. Liability costs VI. Penalties vii. Customer or user goodwill viii. Lost sales ix. Other external failure costs 15. Give the typical cost bases? I. Labor ii. Production iii. Unit IV. Sales 16. How will you determine the optimum cost? a. Make comparison with other organizations b. Optimize the individual categories c. Analyze the relationships among the cost categories 17. State the Quality Improvement Strategy?
Ö Reduce failure costs by problem solving Ö Invest in the ―right‖ prevention activities Ö Reduce appraisal costs where appropriate and in a statistically sound manner Ö Continuously evaluates and redirects the prevention effort to gain further quality improvement.
18. Define Quality Planning? A quality plan sets out the desired product qualities and how these are assessed and define the most significant quality attributes. It should define the quality assessment process. It should set out which organizational standards should be applied and, if necessary, define new standards. 19. Give the Objectives of TQM?a. To develop a conceptual understanding of the basic principles and methods associated with TQM; b. To develop an understanding of how these principles and methods have been put into effect in a variety of organizations; c. To develop an understanding of the relationship between TQM principles and the theories and models studied in traditional management; d. To do the right things, right the first time, every time. 20. Give the Quality Hierarchy? 1. Inspection (QI) 2. Quality Control (QC) 3. Quality Assurance (QA)
4. Total Quality Management (TQM) Inspect products. Detection Finding & Fixing Mistakes. 21. What is needed for a leader to be effective? To be effective, a leader needs to know and understand the following: è People, paradoxically, need security and independence at the same time. È People are sensitive to external rewards and punishments and yet are also strongly selfmotivated. È People like to hear a kind word of praise. È People can process only a few facts at a time; thus, a leader needs to keep things simple. È People trust their gut reaction more than statistical data. È People distrust a leader’s rhetoric if the words are inconsistent with the leader’s actions. 22. What is the important role of senior management? § Listening to internal and external customers and suppliers through visits, focus groups and surveys. § Communication. § To drive fear out of the organization, break down barriers, remove system roadblocks, anticipate and minimize resistance to change and in general, change the culture. 23. What are the general duties of a quality council? I. Develop, with input from all personnel, the core values, vision statement, mission statement, and quality policy statement. ii. Develop the strategic long-term plan with goals and the annual quality improvement program with objectives. iii. Create the total education and training plan. iv. Determine and continually monitor the cost of poor quality. v. Determine the performance measures for the organization, approve those for the functional areas, and monitor them. vi. Continually, determine those projects that improve the processes, particularly those that affect external and internal customer satisfaction. vii. Establish multifunctional project and departmental or work group teams and monitor their progress. viii. Establish or revise the recognition and reward system to account for the new way of doing business. 24. What does a typical meeting agenda contain after establishing the TQM? Progress report on teams Customer satisfaction report Progress on meeting goals New project teams Recognition dinner Benchmarking report
25. What are the various quality statements? Vision Statement Mission Statement Quality Policy Statement 26. Give the basic steps to strategic quality planning? i.Customer needs ii. Customer positioning iii.Predict the future iv.Gap analysis v.Closing the gap vi.Alignment vii.Implementation 27. What is a quality policy? The Quality Policy is a guide for everyone in the organization as to how they should provide products and service to the customers. The common characteristics are Quality is first among equals. Meet the needs of the internal and external customers. Equal or exceed the competition. Continually improve the quality. Include business and production practices. Utilize the entire work force. 28. What is a mission statement? The mission statement answers the following questions: who we are, who are the customers, what we do, and how we do it. 29. What is a vision statement? The vision statement is a declaration of what an organization should look like five to ten years in a future. Clients with similar cases than attorneys without experience in that type of case. Direct Tire Sales employs people with experience because they are less likely to make mistakes, thus reducing the cost of serving the customer. Experience is also employed through utilization of the "Do" step of Deming's Plan-Do-Study-Act cycle. By actually implementing the proposed improvement on a test or full scale basis, the firm gains knowledge that it would not obtain through attempting to logically deduce the results without actually implementing. This is because the success of the project may be explained by a new paradigm that would appear illogical under the existing paradigm. The success of the project and the new underlying paradigm would not be discovered without actually implementing the project. 4. Manage Measurement (the Study step) . In some organizations, measurement is mismanaged, producing results inconsistent with the true needs of the organization. For example, the computer consulting firm that began measuring "quality" by the number of lines its computer programs wrote in a day were
actually encouraging longer, more memory consumptive programs which were actually inconsistent with the needs of their customers. Similarly measurement of performance, with the implication that the participant has control over the performance when85% of the control belongs to the system and not the participants can lead to sub-optimization inconsistent with the needs of the firm. Some organizations waste their time measuring everything and, as a consequence, create an environment in which measurement is not taken seriously or worse yet, encourage behavior inconsistent with the true vision of the organization. Although they are more difficult to obtain, measurements of the higher dimensions of quality provide better information for strategic quality planning. For example, process control measures (third-dimension measurements) are far more effective at reducing defects and improving quality than inspection of the completed product (a firstdimension detection method). Measurements of paradigms can provide significant leverage for shifting corporate culture, as illustrated by the bereavement policy example. In contrast, measurement and control of behavior can actually be counterproductive. Value sharing is measured through measurements of the strength of relationships. There are three measures of the strength of relationships: first, the level of consecration; second, the level of repeat business; and third, and the level of referral business. The level of consecration is measured by the degree to which the participants are willing to pay more to this organization than they are willing to pay to a competitor. For example, Direct Tire customers are willing to pay 10% to12% more for similar products because of the service Direct Tire provides. The level of repeat business is an indication of the extent to which customers have become "sustaining members" of the organization. The level of referral business reflects the extent to which the customer has truly become a participant in sharing the vision of the organization by seeking other participants to contribute resources to (and to share value with) the organization. 5. Reinforce Relationships (the A ct Step) . Since it is long-term relationships that provide the sustaining lifeblood of the organization, those relationships need to be constantly nourished and reinforced. These relationships are built and strengthened through the firm's willingness to share value with its internal and external participants. Another type of relationship which must be reinforced is the delivery method or system which is developed for serving internal and external customers. There is a direct relationship between a successful process and "customer delight." This relationship is reinforced by standardizing the process and making it part of the system. Full application of the Act stage of Deming's Plan-Do-Check-Act cycle does not take place until any improvements generated through the Plan and Do portion of the cycle are verified through measurement and are made a part of the system. All the innovation in the world will be meaningless if the firm does not have the ability to see how the innovation fits into the system and the ability to incorporate the change into the system. It is this standardization step which assists the organization in retaining its learning, which would otherwise be lost upon the death or termination of the employees who developed the improved processes. It is through this standardization that the organization becomes "free of mortal risk."Another relationship that must be understood and reinforced is the relationship of the organization in its socioeconomic environment. The firm that understands the dynamics of its environment and its own role in those dynamics can more effectively use those dynamics for its benefit.
The firm which does not understand the dynamics or its role will be "tossed to and fro" by those system dynamics. THE STRATEGIC QUALITY PLAN The first step in constructing a strategic quality plan is to assess the existing dimensions of quality in the organization. This assessment can then be used as a foundation for planning.The Quality Assessment simply identifies the characteristics of each of the Five Dimensions of Quality in the organization. The following checklist can be used for this assessment. 1. Experience .a. How does the organization translate vision into reality? b. How does the organization utilize experience? 2. Measurement . What does the organization measure and how?a. Inspection/Detection measurements. b. Performance measurements.c. Process control and measurements of Relationships.d. Paradigm measurement.e. Value Sharing measurements (consecration, repeat, and referral). 3. Relationships and Systems a. What systems does the organization have in place? b. How does the organization build long-term relationships with customers and employees? 4. Interconnectivity and Paradigm Logic . What is the principle paradigm under which the organization operates and what does the organization do to support that paradigm? 5. Value Sharing .a. What does the organization offer that has more value to the customer than it does to the organization? b. What evidence is there of mutual consecration of resources and social capital reserves (to what extent do participants pay or provide more than expected)?c. To what extent have customers and employees become "sustaining members" of the organization (providing repeat business or continuing services, or recommending referral business)?The format for the Strategic Quality Plan utilizes the elements of the leadership model and the Five Dimensions of Quality to describe the existing environment and the future state of the organization and the means the organization will use to achieve that future state CUSTOMER SATISFACTION Customers are important asset to the organization, satisfied customers will buy more, and buy more frequently, and pay their bill promptly. In a manufacturing and service organization, customer satisfaction is considered as a measure of quality.TQM implies an organizational drive with meeting or exceeding customer needs. Understanding the customer's needs and expectations is essential to winning new business. To attain this level, the organization should examine their quality system to respond to their ever changing customer's needs. A simple definition of customer satisfaction is illustrated below Teboul model
Characteristics of customer satisfaction. 1. It is far from simple. 2. It is not an objective statistic, but more of feeling and attitude. 3. Therefore like people's opinion and feeling, it is subjective by nature. 4. Because of this subjective nature, it is difficult to measure. 5. The measurement of customer satisfaction is not precise. 6. The customer satisfaction should not be viewed in vacuum, i.e., it should be compared with the level of satisfaction they have with competitor's product are service. Types of customers. 1. Internal customers - each of them receives a product or service and in exchange, providers a product or service. 2. External customers - one who uses the product or service, the one who purchase the product, or the who influences the sale of the product. One basic concept of TQM is focus on customers, both internal and external. Customer perception of quality. In an organization there is no acceptable quality level because the customer's needs, values and expectations are constantly changing and becoming more demanding. An American Society for Quality (ASQ) survey reveals the following end-user perception of quality 1.Performance 2.Features 3.Service 4. Warranty 5. Price 6. Reputation. Price. Today customers are ready to pay a higher price to obtain value. Therefore it becomes increasingly important for an organization to identify, verify, and update each customer's perception of value against those of its competitors. ( For other perceptions please refer unit - 1 note)
CUSTOMER COMPLAINTS Unlike the customer's feedback the customer complaints are reactive, and they are important in gaining data on customer perceptions. A dissatisfied customer can easily become a lost customer because of their frustrations. This customer dissatisfaction becomes a measure for organizational process improvement measures. Every single complaint should be accepted, analyzed, and acted upon to again win over customer's confidence. Since more than 50% of the dissatisfied customers will buy again if they are complaint has been heard and resolved. By adopting a positive approach the complaints can be seen as an opportunity to obtain information and provide a positive service to the customer. Handling the customer complaints 1. Investigate customer's experiences by actively receiving the customer feedback and then acting promptly. 2. Develop procedures for complaint resolution that include empowering front-line employee. 3. Analyze complaints, try to put them in a category for speedy response. 4. Work to identify process and material variations and then eliminate the root cause.’ more inspection' is not a corrective action. 5. After receiving the response, a senior manager should contact the customer and strive top resolve the concern 6. Establish customer satisfaction measures and constantly monitor them 7. Communicate complaint information, as well as the results of all inquiries and solutions, to all people in the organization. 8. Provide a monthly complaint report to the quality council for their evaluation and if needed, the assignment of process improvement teams. 9. Identify customer's expectations in advance rather than afterward through complaint analysis. SERVICE QUALITY Customer service is the set of activities an organization uses to win and retain customers' satisfaction. It can be provided before, during, and after the sale of the product. Elements of customer service are: Organization 1. Identify each market segment 2.write down the requirements 3.communicate the requirements 4.organise processes 5.organize the physical spaces Customer care
6. Meet the customer's expectations 7. Get the customer point of view 8. Deliver what is promised 9. Make the customer feel valued 10.respond to all complaints 11.over respond to the customer. 12.Provide a clean and comfortable customer reception environment. Communication 13. Optimize the trade of between time and personal attention 14. Minimize the number of contact points. 15 provide pleasant, knowledgeable, and enthusiastic employees. 16. Write documents in customer friendly language. Front-line people 17. Hire people who like people 18. Challenge them to develop better methods. 19. Give them an authority to solve problems 20. Serve them as internal customers 21. Be sure they are adequately trained. 22. Recognize and reward performance. Leadership 23. Lead by example 24. Listen to the front line employee 25. Strive for continuous process improvement. CUSTOMER RETENTION Customer retention represents the activities that produces the necessary customer satisfaction which in turn creates the customer loyalty. Customer retention moves customer satisfaction to the next level by determining what is truly important to the customers and making sure that the customer satisfaction system focuses valuable resources on things that are important to the customer. Customer retention is the connection between customer satisfaction and the bottom line. World-class companies know that continuous improvement and customer satisfaction should go hand-in-hand. Improved service to the customer is a costlier affair, so an organization must determine its return on the service investment. For this the important service elements that significantly improve revenues and market share should be determined. One survey indicates, it requires five times of effort to win a new customer than retaining a present customer. In this context customer retention is important for organizational
success. EMPLOYEE INVOLVEMENT Japanese management emphasizes the need to consider employee as a valuable resources rather than treating them as a mere tools for production. Employee involvement is one approach to improve quality and productivity. It is not a replacement for management nor is it the final word in quality improvement, it aims at better meeting of organizational goals at all levels. Motivation Knowledge of motivation helps us to understand the utilization of employee involvement to achieve process improvement.
THEORIES OF MOTIVATION He explained the motivation in terms of a hierarchy of needs and that there were five levels. These are survival, security, social, esteem, and self-actualization. ( Refer the above figure) It is important to note that as employees move up the hierarchy, they will immediately revert back to the previous level if they feel threatened. HERZBERG'S TWO FACTOR THEORY Herzberg extends the Maslow's theory by using empirical research in employee motivation.
He found that people were motivated by the motivators ( intrinsic factors) like recognition, responsibility, achievement, advancement and the work itself. In addition he found that bad feelings were associated with preventable dissatisfies or hygiene factors (extrinsic factors) like low salary, minimal fringe benefits, poor working conditions, ill-defined organizational policies and mediocre(ordinary) supervision. He also explained that the presence of extrinsic factors( for example good working condition) does not produce any motivation but their absence will create dissatisfaction among employees. In a same manner the absence of intrinsic factors ( for example advancement) does not produce any dissatisfaction but their presence will provide strong level of motivation. McGregor’s Theory X and Theory Y
How to motivate work force 1. Know thyself 2. Know your employees 3. Establish a positive attitude 4. Share the goals 5. Monitor progress 6. Develop interesting work 7. Communicate 8. Celebrate success EMPOWERMENT The dictionary meaning of the term empowerment is to invest people with authority. Its purpose is to tap the enormous potential that lies within every worker. An operational definition is as follows: Empowerment is an environment in which people have the ability, the confidence, and the commitment to take the responsibility and ownership to improve the process and initiate the necessary steps to satisfy customer requirements within well defined boundaries in order to
achieve organizational values and goals. Empowerment is nothing unusual, people generally want to be more in charge of their own jobs and careers. After all, they do that successfully in their personal lives every day. Most people appreciate and value the trust and responsibility. This empowerment helps greatly in eliminating resistance to changes. Empowerment is different from delegation or job enrichment, which means distributing or entrusting work to others. In empowerment employee is held responsible for accomplishing a whole task.i.e., employee becomes process owner, thus not only responsible but also accountable. Three conditions are necessary for empowering employees 1. Everyone must understand the need for change 2. The system needs to change to the new paradigm( model/standard) 3. The organization must enable its employees. TEAMS Teams are very effective in solving all quality and productivity problems. Team is defined as a group of people working together to achieve common objectives or goals. Teamwork is the cumulative actions of the team during which each member of the team subordinates his interests and opinions to fulfill the objectives or goals of the group. Many heads are better than one, especially in meeting ever-changing customer needs. Each member of the team has special ability that can be used for the problem. Many processes are so complex that one person cannot able solve completely. Based on the synergy effect, whole is greater than sum of its parts. Team work is better than sum of its member contribution. Team builds a rapport with each other that allows everyone to do a better job. Teams provide the vehicle for improved communication. Types of teams · Process improvement teams · cross-functional teams · natural work teams · self-directed/ self managed teams Characteristics of successful teams Sponsor Team charter Team competition training ground rules clear objectives accountability well-defined decision procedures resources
trust effective problem solving open communication appropriate leadership balanced participation cohesiveness. Definition of Quality: The dictionary has many definitions of ―quality‖. A short definition that has achieved acceptance is : ― Quality is Customer Satisfaction‖. ―Fitness for use‖ is an alternative short definition. Here, customer means anyone who is impacted by the product or process. Quality is ― a predictable degree of uniformity and dependability, at low cost and suited to the market‖. Quality is a relative term, generally used with reference to the end-use of a product. Quality should be aimed at the needs of the consumer, present and future. According to ISO 8402, quality is ― the totality of features and characteristics of a product or service that bear on its ability to satisfy stated or implied needs‖. Broadly quality is: a) Fitness for use b) Grade c) Degree of preference d) Degree of excellence e) Conformity to requirements Dimensions of Quality : The following are the components reveal the dimensions of quality. Manufacturing Industries Service Industries Product Features Accuracy Performance Timeliness Reliability Completeness Durability Friendliness and courtesy Ease of use Anticipating customer needs Serviceability Knowledge of server Esthetics Availability Reputation Reputation Quality Planning : Quality planning is the pre determined activities in order to achieve conformation to the requirements. Many organizations are finding that strategic quality plans and business plans are inseparable. The quality planning procedure given by Joseph.A.Juran has the following steps:
· Identify the customers · Determine their needs · Translate those needs into our language. · Develop a product that can respond to those needs · Optimize the product features to meet our and customer needs Quality Costs : All organizations make use of the concept of identifying the costs needed to carry out the various functions – product development, marketing, personnel, production etc., Until the 1950’s this cost concept had not been extended to quality function, except for the departmental activities of inspection and testing. During the 1950’s the concept of ―Quality Cost‖ emerged. Different people assigned different meanings to the term. Some people equated quality cost with the cost of attaining quality; some people equated the term with the extra incurred due to poor quality. But, the widely accepted thing is ―Quality cost is the extra cost incurred due to poor or bad quality of the product or service‖. Categories of Quality Cost : Many companies summarize quality costs into four broad categories. They are, a) Internal failure costs - The cost associated with defects that are found prior to transfer of the product to the customer. b) External failure costs - The cost associated with defects that are found after product is shipped to the customer. c) Appraisal costs - The cost incurred in determining the degree of conformance to quality requirement. d) Prevention costs - The cost incurred in keeping failure and appraisal costs to a minimum. Some times we can also include the hidden costs i.e., implicit costs. Traditional Quality cost model Emerging Quality Cost Model yes, higher quality doesn't mean higher costs The companies estimate quality costs for the following reasons : a) To quantifying the size of the quality problem in the language of money improves communication between middle managers and upper managers. b) To identify major opportunities for cost reduction. c) To identify the opportunities for reducing customer dissatisfaction and associated threats to product salability. Analysis Techniques for Quality Costs : Refer the recommended text book. Basic Concepts of Total Quality Management : Definition of TQM: Total Quality Management is a management approach that tries to achieve and sustain
long term organizational success by encouraging employee feedback and participation, satisfying customer needs and expectations, respecting societal values and beliefs, and obeying governmental statutes and regulations. Five Pillars of TQM are, · Product · Process · System · People · Leadership Total Quality Management is an effective system for integrating the quality development, quality maintenance and quality improvement efforts of various groups in an organization continuously, so as to enable marketing, engineering, production and service at the most economic levels which allow for full customer satisfaction. The TQM is applied to many stages of Industrial Cycle which are listed below : 1. Marketing 2. Engineering 3. Purchasing 4. Manufacturing 5. Mechanical 6. Shipping 7. Installation and product service. < Strong>Fundamental factors affecting Quality : ( 9 M’s) 1. Market 2. Money 3. Management 4. Men 5. Motivation 6. Materials 7. Machines and Mechanization 8. Modern Information Methods 9. Mounting Product Requirements Benefits of TQM : Customer satisfaction oriented benefits : 1. Improvement in product quality 2. Improvement in product design 3. Improvement in production flow 4. Improvement in employee morale and quality consciousness 5. Improvement in product service 6. Improvement in market place acceptance Economic improvement oriented benefits : 1. Reduction in operating costs
2. Reduction in operating losses 3. Reduction in field service costs 4. Reduction in liability exposure
Historical Review : The history of quality control is undoubtedly as old as industry itself. In 1924, W.A. Shewhart of Bell Telephone Laboratories developed a statistical chart of the control of product variables. This chart is considered to be the beginning of statistical quality control. Later in the same decade, H.F.Dodge and H.G.Romig, both of Bell Telephone Laboratories, developed the area of acceptance sampling as a substitute of 100% inspection. In 1946, the American society for Quality Control was formed. Recently the name was changed into American Society for Quality (ASQ). In 1950’s W.Edwards Deming emphasized about the management’s responsibility to achieve quality. In 1960’s the first quality control circles were formed for the purpose of quality improvement. In the late 1980’s the automotive industry began to emphasize statistical process control. After 1990’s the ISO became the model for a quality management system worldwide. Quality Movement in India: Before Independence in India, quality has been a tradition but not in a consolidated form. Walter Shewhart, the father of Statistical Quality Control, visited India for a short period of three months during 1947-48 and initiated the SQC movements in Indian companies. The quality movement was consolidated in the 1980s in the Indian Industries to bring out synergy of resources by the pioneering efforts of Confederation of Indian Industries (CII) Dr.W.Edward Deming, the father of Quality Control , who taught Japanese about applying PDCA cycle (Deming Cycle) came to India in early 1950s. The TQM movement in USA in 1980s triggered quality movement in India in the year 1982 and Quality Circle was born. Prof. Ishikawa , the founder of quality movement in Japan was invited by CII to come to India to address Indian Industry in 1986. CII organized a first major seminar with Joseph Juran in 1987. CII provided a focus and an impetus to the quality movement by forming a TQM division in 1987. By then the focus was shifted from quality circles to quality management. CII set up the TQM division with the help of 21 companies who agreed to support the journey of TQM in India. The chief executives of these companies formed a National Committee on Quality. CII also launched the first news letter on Quality. The year 1987 brought the ISO 9000 standards into reality and visible strategies emerged. CII organized training programmes in ISO 9000 quality systems for international standards and certification in the year 1989.From the year 1991, Indian companies started to get the ISO 9000 certifications.The concept of TQM spread over the service sector and technology apart from engineering applications.CII organized and launch of National Quality Campaign in 1992, led by the Prime Minister of India and the ― Quality Summit ‖ organized by CII has now become an annual feature across the country.
The future thrust on quality movement in India would be based on: Application Research ( Industry and Academics) Experience Sharing ISO certifications Environmental protection, safety and consumer protection for quality enhancement. (In addition please refer the table given in class notes) Principles of TQM : Visionary leadership Customer-driven excellence Organizational and personal learning Valuing employees and partners Agility Focus on the future Managing for innovation Management by fact Public responsibility Focus of results and creating values Systems perspective Leadership : Leadership plays a central part in understanding group behavior, for it is the leader who usually provides the direction toward goal attainment. Therefore, a more accurate predictive capability should be valuable in improving group performance. We can define leadership as ―the ability to influence a group toward the achievement of goals.‖ · The source of this influence may be formal. A person may assume a leadership role simply because of his/her position. · Not all leaders are managers, nor, for that matter, are all managers’ leaders. · Non-sanctioned leadership—the ability to influence that arises outside the formal structure of the organization—is often as important as or more important than formal influence. · Leaders can emerge from within a group as well as by formal appointment to lead a group. Organizations need strong leadership and strong management for optimum effectiveness. Leaders must challenge the status quo, create visions of the future, and inspire organizational members. Six traits on which leaders tend to differ from non leaders are: a. Ambition and energy b. Desire to lead c. Honesty and integrity d. Self-confidence e. Intelligence f. Job-relevant knowledge. Characteristics of Quality Leaders:
They continuously evaluate the changing customer needs. They empower, rather than control subordinates. They emphasize improvement rather than maintenance they emphasize prevention. They encourage collaboration rather than competition. They train and coach rather than direct and supervise. They learn from the problems. They continuously improve communication. They continuously committed to quality. They choose suppliers in the basis of quality not price. They establish organizational system to support quality effort. They encourage and recognize team effort. Quality Council : In order to build quality in the culture, a quality council is established to provide overall direction. It is the driver for the TQM engine. In a typical organization the quality council is composed of the chief executive officer (CEO); the senior managers of the functional areas, such as design, marketing, finance, production, and quality; and a Coordinator or consultant. Duties of the quality council: a) to develop the vision, mission and quality statement of the organization, with the input from all the personnel. b) To develop strategic long-term plan with goals and annual quality improvement program with objectives. c) Create a total education and training plan. d) Determine and continuously monitor the cost of poor quality. e) Determine the performance measures of the organization and monitor. f) Continuously determine those projects that improve and affect external and internal customer satisfaction. g) Establish multifunctional project and work group teams and monitor their progress. h) Establish and revise the recognition and reward system to account for the new way of doing business. The typical quality council meeting agenda of a well established TQM organization : a) Progress reports on teams b) Customer satisfaction report c) Progress on meeting goals d) New project teams e) Recognition dinner f) Benchmarking report
Quality Statements : Core values and concepts provide the unity of purpose. In addition to that, the quality statements include the vision statement, mission statement and quality policy statement. They are the part of the strategic planning process. Vision Statement: It is a short declaration of what an organization aspires to be tomorrow. It is the ideal state that might never reach but which you continuously strive to achieve. Example : We will be the preferred provider of safe, reliable, and cost-effective products and services that satisfy the electric-related needs of all customer segments. FLORIDA POWER & LIGHT COMPANY Mission Statement : The mission statements answer the following questions : Who we are ? Who are the customers ? What we do ? And how we do it ? It is the usually a one paragraph statement which describes the function of the organization. It provides a clear statement of purpose for employees, customers and suppliers. Example : To meet customers’ transportation and distribution needs by being the best at moving their goods on time, safely and damage free. CANADIAN NATIONAL RAILWAYS Strategic Planning : There are seven basic steps to strategic quality planning. a) Customer needs b) Customer positioning c) Predict the future d) Gap analysis e) closing the gap f) Alignment g) Implementation Strategic planning can be performed by any organization . It can be highly effective, allowing organizations to do the right thing at the right time, every time. Deming Philosophy : W. Edwards Deming, an American quality expert, become a Parma-Guru in Japan because he preached the philosophical basis of quality and productivity, which was accepted,
absorbed and implemented with sustained positive results by the Japanese. The Highest Award in the Japanese Industrial Circles is the Deming prize for quality. Dr. Deming introduced the Plan –Do-Study-Act cycle to the Japanese decades ago. A Company plans a change, does it, checks the results and depending upon the results, acts either to standardize the change or to begin the cycle of improvement again with new information. Continuous or never ending improvement requires such a circular approach. Deming’s Philosophy is given in his 14 points of quality management. Most of these points were given in a seminar for 21 presidents of leading Japanese industry in 1950. The rest were developed and the original ones modified over a period of three decades. 1.Create and publish the aims and purposes of the organization. 2.Learn the new philosophy. 3.Understand the purpose of inspection. 4.Stop awarding business based on price alone. 5.Improve constantly and forever the system. 6.Institute training. 7.Teach and institute leadership. 8.Drive out fear, create trust and create a climate for innovation. 9.Optimize the efforts of teams, groups and staff areas. 10.Strive to eliminate intradepartmental conflicts 11Eliminate exhortations for the work force. a) Eliminate numerical quotas for the work force. b) Eliminate Management by Objective. 12.Remove barriers that rob people of pride of workmanship. 13.Encourage education and self-improvement of everyone. 14.Take action to accomplish the transformation. In addition he also pointed out the 7 deadly diseases that affecting the above transformation The Seven Deadly Diseases 1. Lack of constancy of purpose. 2. Emphasis on short-term profits. 3. Evaluation by performance, merit rating, or annual review of performance. 4. Mobility of management. 5. Running a company on visible figures alone. 6. Excessive medical costs. 7. Excessive costs of warranty, fueled by lawyers that work on contingency fee. A Lesser Category of Obstacles 1. Neglect of long-range planning. 2. Relying on technology to solve problems.
3. Seeking examples to follow rather than developing solutions. 4. Excuses such as "Our problems are different". 5. Others. Barriers to TQM Implementation : Lack of management commitment Inability to change organizational culture Improper planning Lack of continuous training and education Incompatible organizational structure and isolated individuals and department Ineffective measurement techniques and lack of access to data and results Paying inadequate attention to internal and external customers Inadequate use of empowerment and team work Failure to continually improve.
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