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RAJALAKSHMI INSTITUTE OF TECHNOLOGY DEPARTMENT OF MANAGEMENT STUDIES GE2022-TOTAL QUALITY MANAGEMENT UNIT-1 INTRODUCTION

INTRODUCTION Qualit Ma!a"#$#!t i% &#'i!#& a% ())*&i!at#& a(ti+iti#% t) &i*#(t a!& ()!t*)l a! )*"a!i,ati)! -it. *#"a*& t) /ualit 0 21i#-%2 10 P*)&u(#*3% 4)i!t )' +i#* Doing the right thing *Doing it the right way *Doing it right the first time *Doing it on time without exceeding cost 20 '*)$ t.# u%#*3% 4)i!t )' +i#*Receiving the right product for their use * Being satisfied with their needs Meeting their expectations Being treated with integrity, courtesy & respect

S)$# )' t.# QUALITY FAILURES2 1. Premature expiry of ight !u !s, !attery ce s ". #au ty engines $. %ow &ua ity instruments & devices '. Poor service (. %ate de iveries ). Defects in manufactured items *f any !usiness does not adopt &ua ity in their manufacturing activity they wi share and una! e to se their products and services. oses mar+et

,herefore every !usiness in order to o!tain profita!i ity and growth adopt the &ua ity concepts !ecause nowadays customers are the important asset for a the !usiness activity and meeting the customer needs & re&uirements is another important tas+. TQM i% t.# a44li(ati)! )' /ua!titati+# $#t.)&% 5 .u$a! *#%)u*(# t) i$4*)+# all t.# 4*)(#%%#% -it.i! a! )*"a!i,ati)! 5 #6(##& (u%t)$#* !##&% !)- a!& i! t.# 'utu*#0 -urviva in the .or d c ass competition Present and future growth 1

/ustomer oriented /ompetitive advantage

,he purpose of ,0M is to provide a &ua ity product and or service to customers, who wi in turn increase productivity and ower cost with a higher &ua ity product and ower price, competitive position in the mar+et p ace wi !e enhanced. 7.at i% /ualit 8 9D#'i!iti)! )' Qualit : ;0ua ity is 1fitness for use< 9J)%#4. Ju*a!: ;0ua ity is 1conformance to re&uirements< 9P.ili4 =0 C*)%> : ;0ua ity of a product or services is its a!i ity to satisfy the needs and expectations of the customer ; 0ua ity is meeting customer re&uirements *0ua ity is customer satisfaction. 10ua ity is the tota ity of characteristics of an entity that !ear on its a!i ity to satisfy stated and imp ied needs23 ISO Qualit (a! ># /ua!ti'i#& a% ')ll)-%2 Q?P@E where, 0 4 0ua ity P 4 Performance 5of product 6 service7 8 4 8xpectation 5customer7 I&#all Q %.)ul& ># A 10 ;Cu%t)$#* %ati%'a(ti)!- 9 state in which customers fee that their expectations have !een met !y the product features. * Cu%t)$#* Di%%ati%'a(ti)!3 9 state of affairs in which deficiencies 5in goods & services7 resu t in customer annoyance, comp aints, c aims and so on. *D#'i(i#!(i#% : 9 product deficiency is a product fai ure that resu ts in product dissatisfaction. -uch as errors, defects & fai ures.

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=a%i( P*i!(i4l#% )' TQM

*n ,0M, the processes and initiatives that produce products or services are thorough y managed. By this way of managing, process variations are minimi;ed, so the end product or the service wi have a predicta! e &ua ity eve . #o owing are the +ey princip es used in ,0M.

T)4 $a!a"#$#!t. ,he upper management is the driving force !ehind ,0M. ,he upper management !ears the responsi!i ity of creating an environment to ro out ,0M concepts and practices. T*ai!i!" !##&%. .hen a ,0M ro out is due, a the emp oyees of the company need to go through a proper cyc e of training. <nce the ,0M imp ementation starts, the emp oyees shou d go through regu ar trainings and certification process. Cu%t)$#* )*i#!tati)!. ,he &ua ity improvements shou d u timate y target improving the customer satisfaction. #or this, the company can conduct surveys and feed!ac+ forums for gathering customer satisfaction and feed!ac+ information. I!+)l+#$#!t )' #$4l) ##%. Pro3activeness of emp oyees is the main contri!ution from the staff. ,he ,0M environment shou d ma+e sure that the emp oyees who are proactive are rewarded appropriate y. T#(.!i/u#% a!& t))l%. =se of techni&ues and too s suita! e for the company is one of the main factors of ,0M. C)*4)*at# (ultu*#. ,he corporate cu ture shou d !e such that it faci itates the emp oyees with the too s and techni&ues where the emp oyees can wor+ towards achieving higher &ua ity. C)!ti!u#% i$4*)+#$#!t%. ,0M imp ementation is not a one time exercise. 9s ong as the company practices ,0M, the ,0M process shou d !e improved continuous y. I$4)*ta!t 4)i!t% 9P*i!(i4l#% )' TQM: 1. /ustomer re&uirements must !e met the first time and every time. ". 8very!ody must !e invo ved from a $. ,wo way communication at a eve s eve s and across a functions.

'. 9 cu ture of continuous improvement must !e esta! ished (. 0ua ity improvement must e iminate wastes and reduce tota cost. ). Must !e focused on prevention of pro! ems. * A-a*&% ')* Qualit 2 1. Ma com Ba drige >ationa &ua ity 9ward ". Deming 9ward 5Deming pri;e inc ude 1.,0M concepts & va ues, /orporate o!?ectives, 0ua ity 9ssurance systems, ,op management eadership, @ision & strategy7

Quality Gurus of TQM


JURAN3 Auran tri ogy for managing &ua ity DEMING- 1' Points of management, -tatistica &ua ity contro ISHIKA7A- 0ua ity circ e concept, cause & effect diagram FEIGEN=AUM3 /ompany wide 0ua ity contro , Management invo vement SHE7HART3 /ontro charts, PD/9 cyc e. TAGUCHI3 Ro!ust design, oss function concept CROS=Y3 Bero defects, 10ua ity is free2 '

THE NE7 FRAME7ORK OF TQM @ TQM MODEL

,his new ,0M mode !ased on a the exce ent wor+ done during the ast century, provides a simp e framewor+ for exce ent performance, covering a ang es & aspects of an organi;ation and its operation. ,0M approaches to the direction, po icies and strategies of the !usiness or organi;ation. Performance is achieved, using a !usiness exce ence approach, and !y p anning the invo vement of peop e in the improvement of processes. ,his has to inc ude, S %t#$%3 ,he deve opment & dep oyment of po icies & strategies. -etting up appropriate partnership & resources, designing in &ua ity. P*)(#%%#%3 =nderstanding management, design & redesign, &ua ity management, /ontinous improvement. P#)4l#3 Managing human resource, cu ture change, team wor+, communication, *nnovation & earning. *t was recogni;ed that cu ture p ayed an enormous ro e in whether organi;ations were successfu or not with their ,0M approaches. Cood communication of course , were seen to !e vita to success !ut the most important of a was commitment, not on y from the senior management !ut from everyone in the organi;ation, particu ar y those operating direct y at the customer interface. Many companies and organi;ations in the pu! ic sector found this simp e framewor+ usefu and it he ped groups of senior managers throughout the wor d get started with ,0M. (

QUALITY COUNCIL *t is a team to provide overa direction for achieving the tota &ua ity cu ture. ,he mem!ers of &ua ity counci are the /8<, the senior managers of different functiona areas, and a co3 ordinator or consu tant. In 1981- MOTOROLA Company Quality Goal- Zero defects in everything we do QUALITY AUDIT *t is defined as systematic and independent examination to determine whether &ua ity activities & re ated resu ts comp y with p anned arrangements, whether these arrangements are imp emented effective y & whether these are suita! e to achieve o!?ectives. NEED FOR QUALITY 1. Rapid y changing wor d & shrin+ing time sca e ". /ut throat competition $. Rapid techno ogica deve opments '. Dnow edge !ased economy & organi;ationa hierarchy (. /ontinuous & fast change in professiona ife ). /ustomer on centre stage E. 8nvironmenta concerns F. -ocia y responsi! e organi;ation G. Reduction in wastage.

T.# O*i"i! )' TQM


,he origin of the ,0M goes !ac+ to the time of the #irst .or d .ar. During the .or d .ar *, there have !een a num!er of &ua ity assurance initiatives ta+en p ace due to the arge3sca e manufacturing re&uired for war efforts. ,he mi itary fronts cou d not afford poor &ua ity products and suffered heavy osses due to the poor &ua ity. ,herefore, different sta+eho ders of the war initiated efforts to enhance the manufacturing &ua ity.

#irst of a , &ua ity inspectors were introduced to the assem! y ines in order to inspect the &ua ity. Products !e ow certain &ua ity standard were sent !ac+ for fixing. 8ven after .or d .ar * ended, the practice of using &ua ity inspectors continued in manufacturing p ants. By this time, &ua ity inspectors had more time in their hands to perform their ?o!. ,herefore, they came up with different ideas of assuring the &ua ity. ,hese efforts ed to the origin of -tatistica 0ua ity /ontro 5-0/7. -amp ing was used in this method for &ua ity contro . 9s a resu t, &ua ity assurance and &ua ity contro cost reduced, as inspection of every production item was need in this approach. During the post .or d .ar ** era, Aapanese manufacturers produced poor &ua ity products. 9s a resu t of this, Aapanese government invited Dr. Deming to train Aapanese engineers in &ua ity assurance processes. By 1G(H, &ua ity contro and &ua ity assurance were core components of Aapanese manufacturing processes and emp oyees of a eve s within the company adopted these &ua ity processes. By 1GEHs, the idea of tota &ua ity started surfacing. *n this approach, a the emp oyees 5from /8< to the owest eve 7 were supposed to ta+e responsi!i ity of imp ementing &ua ity processes for their respective wor+ areas. *n addition, it was their responsi!i ity to &ua ity contro , their own wor+. E1OLUTION OF QUALITY P*# 1B003 *ndividua 9rtisans 5detection of defects, @iew of &ua ity7 1B003%3 *nspection 5inspects &ua ity7 1C003%3 #.. ,ay or3 product inspection in &ua ity 1C2D3%3.a ter -hewart -P/6 /ontro /harts 1CE03%3 -tatistica 0ua ity contro in Aapan 5Deming3 uniformity7 1CF03%- 0ua ity 9ssurance in 9merica 5/o3ordination, pro! em to !e so ved7 1CG03%3 Phi ip /ros!y : Bero defects 1CH03%3 Preventing defects than correcting them 1CB03%3 -trategic 0ua ity Management 5manages in &ua ity, competitive7, *-< GHHH 20003%3 0ua ity shift from manufacturing to service 1Business 8xce ence2 Cu**#!t : /ontinua *mprovement E

TQM? TOTAL I QUALITYI MANAGEMENT

Dal# =#%t#*'i#l& exp ains ,ota 0ua ity Management 5,0M7 is an enhancement to the traditiona way of doing !usiness.
Tota !"a ity Manage#ent 3 3 3 Made up of the who e Degree of 8xce ence a Product or -ervice provides. 9rt of hand ing, contro ing, directing etc.

TQM D#'i!iti)! 1 ,0M is the management approach of an organi;ation centered on &ua ity, !ased on participation of a its mem!ers and aiming at ong3term success through its customer satisfaction, and !enefits to a mem!ers of the organi;ation and to society2 : ISO0 T.# 4illa*% )' TQM a*# a% >#l)-J 1. St*at#"i( /ualit 4la!!i!" *t is concerned with p anning &ua ity in various activities invo ved at strategic eve such as preparation of !usiness p an and mar+eting p an, ong term resource p anning, demand management. *f the &ua ity is p anned at strategic eve , it he ps for !etter process &ua ity p anning and product &ua ity p anning. ". P#)4l# Peop e p ay important ro e in successfu imp ementation of ,0M. Ience it is important to understand concepts re ated emp oyee invo vement, emp oyee motivation, emp oyee empowerment, team wor+, and emp oyee recognition and reward and performance appraisa . $. Qualit i! &ail -)*K 0ua ity in dai y wor+ of a emp oyees extreme y important from successfu ,0M imp ementation point of view, irrespective of what function he is wor+ing or what eve he is wor+ing. '. C)!ti!u)u% i$4*)+#$#!t /ontinuous improvement is the heart of any successfu ,0M imp ementation. ,here are various continuous improvement approaches such as &ua ity circ es, Dai;en, PD-9 cyc e, supp ier partenering etc. CHARACTERISTICS OF TQMJ 1. 8very company mem!er, from the /8< to the owest eve emp oyee is focused on product or service &ua ity. *f management is not !ehind ,0M, then it wi fai . F

". 8veryone must have the re&uired training and !e fami iar with the necessary ,0M techni&ues. $. 9nyone can suggest areas for improvement : va ua! e ideas for improvement at a production ine eve can, in many cases, come from ine wor+ers. '. 9 departments are expected to focus on &ua ity and productivity improvement and imp ement changes for their area. (. /o a!oration on externa issues 5end3user defects for examp e7 is expected from a departments. ). Decisions made are !ased on the !est so utions, not on hidden agendas or favoritism. E. 0ua ity !ecomes a governing part of operations, with decisions that impact on &ua ity, re?ected immediate y, despite perceived cost3savings invo ved. SIL =ASIC CONCEPTS OF TQM 1. 9 committed and invo ved management to provide ong3term top to !ottom organi;ationa support. ". #ocus on customers $. 8ffective invo vement and uti i;ation of the entire wor+force. '. /ontinuous improvement of the !usiness & production process (. ,reating supp iers as partners ). 8sta! ish performance measures for the processes. =ENEFITS OF TQM 1. ". $. '. (. ). E. F. G. 1H. *mproved &ua ity 8mp oyee participation ,eam wor+ /ustomer -atisfaction 8mp oyee satisfaction productivity /ommunication Profita!i ity Mar+et share Better company image

A-a*#!#%% 5,0M does not occur over night7 <rgani;ation oses mar+et share or rea i;es that &ua ity & productivity go hand in hand. ,0M is mandated !y the customer or if management rea i;es that ,0M is a !etter way to run a !usiness & comp ete in domestic & wor d mar+et. *f the 0ua ity is poor, *t is una! e to mar+et product or service %ong3term p anning. O>%ta(l#%@ =a**i#*% t) TQM i$4l#$#!tati)! 1. %ac+ of management commitment G

". *na!i ity to change organi;ationa cu ture $. *mproper p anning '. %ac+ of continous training & education (. *ncompati! e organi;ationa structure & iso ated individua s & departments ). #ai ure to continua y improve E. *nade&uate use of empowerment & teamwor+ F. Paying ade&uate attention to interna & externa customers G. *neffective measurement techni&ues 1H. %ac+ of access to data & resu ts CONTRI=UTIONS OF DEMING2 JURAN2 CROS=Y *DEMING1D4)i!t% 1. /reate constancy of purpose towards improvement of product and services. ". 9dopt the new phi osophy. .e can no onger ive with common y accepted eve s of de ays, mista+es, defective wor+manship. $. /ease dependence on mass inspection. Re&uire, instead, statistica evidence that &ua ity is !ui t in. '. 8nd the practice of awarding !usiness on the !asis of price tag. (. #ind pro! ems. *t is managementJs ?o! to wor+ continua y on the system. ). *nstitute modern methods of training on the ?o!. E. *nstitute modern methods of supervision of production wor+ers. ,he responsi!i ity of foremen must !e changed from num!ers to &ua ity. F. Drive out fear that everyone may wor+ effective y for the company. G. Brea+ down !arriers !etween departments. 1H. 8 iminate numerica goa s, posters and s ogans for the wor+force as+ing for new eve s of productivity without providing methods. 11. 8 iminate wor+ standards that prescri!e numerica &uotas. 1". Remove !arriers that stand !etween the hour y wor+er and his right to pride of wor+manship. 1$. *nstitute a vigorous programme of education and retraining. 1'. /reate a structure in top management that wi push everyday on the a!ove 1$ points. JURAN3% Qualit t*il)" 10 Qualit 4la!!i!" 8sta! ish &ua ity goa s *dentify customer needs ,rans ate needs into our anguage Deve op a product for these needs <ptimise product features for these needs 20 Qualit i$4*)+#$#!t 9ims to attain eve s of performance that are higher than current eve s. *t consists of the fo owing steps 8sta! ishment of &ua ity counci . *dentify the improvement pro?ects. 8sta! ish the pro?ect teams with a pro?ect eader. Provide the team with the resources. E0 Qualit ()!t*)l 1H

/ontro is used !y operating forces to he p meet the product, process and service re&uirements. *t consists of the fo owing steps 1. Determine items to !e contro ed. ". -et goa s for the contro s. $. Measure actua performance. '. /ompare actua performance to goa s. (. 9ct on the difference. JURAN MS t#! %t#4% t) Qualit I$4*)+#$#!t 10Bui d awareness of the need E opportunity for improvement ". -et goa s for improvement $. <rgani;e to reach the goa s '. Provide training (. /arry out pro?ects to so ve pro! ems ). Report progress E. Cive recognition F. /ommunicate resu ts G. Deep score 1H. Maintain momentum !y ma+ing annua improvement part of the regu ar systems & process of the company. P.ili4 C*)%> .ho spent time as 0ua ity Director of *,, had four a!so utes, D8#*>*,*<> /onformance to re&uirements -K-,8M Prevention P8R#<RM9>/8 -,9>D9RD Bero defects M89-=R8M8>, Price of >on3/onformance H# al%) )''#*#& $a!a"#$#!t 1D %t#4% t) i$4*)+#$#!t0 1. Management commitment ". 0ua ity improvement team $. 0ua ity measurement '. /ost of &ua ity (. 0ua ity awareness ) corrective action E. Bero defects p anning F. -upervisor training G. Bero defects day 1H. Coa setting 11. 8rror causes remova 1". Recognition 1$. 0ua ity counci 1'. Do it a over gain. C DIMENSIONS OF QUALITY Dimension Meaning and Example 3333333333333333333333333333333333333333333333333333333333333333333333333333333333333333333333333333333333333333 P#*')*$a!(#3 Primary product characteristics, such as the !rightness of the picture F#atu*#%3 -econdary characteristics, added features, such as remote contro 11

C)!')*$a!(# 3Meeting specifications or industry standards, wor+manship R#lia>ilit 3 /onsistency of performance over time, average time of the unit to fai Du*a>ilit 3=sefu ife, inc udes repair S#*+i(# 3Reso ution of pro! ems and comp aints, ease of repair R#%4)!%# 3Iuman : to : human interface, such as the courtesy of the dea er A#%t.#ti(%3 -ensory characteristics, such as exterior finish R#4utati)! 3Past performance and other intangi! es, such as being ranked first ---------------------------------------------------------------------------------------------------------------DIMENSIONS OF QUALITK L 58g. ,e evision7 5<r7 /ustomer perceptions of &ua ity SAFETY2 UNIFORMITY2 COMPATI=ILITY 94*)&u(t /ualit : S#*+i(# Qualit 1. ,angi! es ". Re ia!i ity $. Responsiveness '. 9ssurance (. 8mpathy Ta!"i>l#%J ,he appearance of physica faci ities, e&uipment, personne , and communication materia R#lia>ilit L 9!i ity to perform the promised service dependa!i ity and accurate y. R#%4)!%i+#!#%%J .i ingness to he p customers and provide prompt service A%%u*a!(#L Dnow edge and courtesy of emp oyees and their a!i ity to inspire trust E$4at. J /aring, individua i;ed attention the firm provides its customers TQM IMPLEMENTATION J Begins with Management /ommitment %eadership is essentia during every phase of the imp ementation process and particu ar y at the start -enior Management shou d deve op an imp ementation p an ,iming of the imp ementation process is very important #ormation of 0ua ity /ounci 9ctive invo vement of Midd e Managers and #irst %ine -upervisors is essentia 8ar y discussions with the =nion is a must /ommunicate ,0M to the entire organi;ation ,raining on &ua ity awareness and pro! em so ving /ustomer, 8mp oyee and -upp ier surveys must !e conducted to !enchmar+ ,he counci esta! ishes the pro?ect teams and wor+ groups and monitors their progress Qualit C)!t*)l is defined as part of &ua ity management focused on fu fi ing &ua ity re&uirements. 1"

Qualit A%%u*a!(# is defined as part of &ua ity management focused on providing confidence that the &ua ity re&uirements wi !e fu fi ed. Qualit Ma!a"#$#!t is defined as /o3<rdinated activities to direct & contro an organi;ation with regard to &ua ity. TQM #l#$#!t% Cultu*# a.va ues Ma!a"#$#!t St l# %eadership G#tti!" I!+)l+#$#!t ,eams M"$t0 t))l% 0 ty. mgmt. systems i+e *-< GHHH P an3do3chec+ 3act cyc e ,echno ogy ,raining -tatistica Process contro R#%ult% #inancia profits customer de ight & committed emp oyees -ocia commitment 8nvironment friend y 8xperience & +now edge !an+

! ,rust

sharing vision

suggestion schemes 0ua ity /irc es /e e!rations on success -haring of information -uccess & #ai ures

c.signa s from top d.Respect and care

communication for transparency Participative decisions

e.9ttitude of # exi!i ity to accepting adapt change change as a routine

T.# A$#*i(a! Qualit Gu*u% ()$4a*#& Definition of 0ua ity C*)%> /onformance to re&uirements D#$i!" 9 predicta! e degree of uniformity and dependa!i ity at ow cost and suited to the mar+et Responsi! e for G'M of &ua ity pro! ems 0ua ity has many sca es.=se statistics to measure performance in a areas. /ritica of ;ero defects. Reduce varia!i ity !y continuous 1$ Ju*a! #itness for use

Degree of senior Responsi! e for management &ua ity responsi!i ity Performance standard6 Bero defects Motivation

%ess than "HM of &ua ity pro! ems are due to wor+ers 9void campaigns to do perfect wor+.

Cenera approach

Prevention, not inspection

Cenera management approach to &ua ity3

improvement./ease mass inspection. -tructure -tatistica process contro 5-P/7 *mprovement !asis ,eamwor+ #ourteen steps to &ua ity improvement Re?ects statistica y accepta! e eve s of &ua ity 9 NprocessJ, not a program. *mprovement goa s 0ua ity improvement teams. 0ua ity counci s /ost of >on3 /onformance. 0ua ity is free Kes and !uyers. 0ua ity audits use ess #ourteen points for management -tatistica methods of &ua ity contro must !e used

especia y NhumanJ e ements.

/osts of &ua ity @endor rating

,en steps to &ua ity improvement Recommends -P%/ !ut warns that it can ead to too3driven approach. /ontinuous to reduce Pro?ect3!y3pro?ect variation. 8 iminate team approach. -et goa s without methods goa s 8mp oyee ,eam and &ua ity participation in circ e approach decision ma+ing. Brea+ down !arriers !etween departments >o optimum3 0ua ity is not free3 continuous there is an optimum improvement >o3critica of most Kes, !ut he p supp ier system improve

E1OLUTION OF QUALITY @ COMPARITI1E STUDY OF QUALITY ERA @ QUALITY HISTORYJ


CHANGE ATTIRI=UTE INSPECTION ERA 1B00%0 STATISTICAL Q0C0 QUALITY ASSURANCE 1CF0%0 STRATEGIC QUALITY MANAGEMENT1CB0%0

Primary concern @iew of 0ua ity

Detection of defects 9 pro! em to !e so ved

/ontro 9 pro! em to !e so ved

/o3ordination 9 pro! em to !e so ved, !ut one that is attac+ed pro3 active y 8ntire production chain, design to mar+et. Prevent &ua ity fai ures Programs and systems 8ducation and training, 1'

-trategic impact 9 competitive opportunity

8mphasis

Product uniformity

Product uniformity with reduced inspection -tatistica too s and techni&ues ,rou! e shooting

,he mar+et and consumer needs

Methods

Cauging and measurement *nspection, counting and

Ro e of &ua ity professiona s

-trategic p anning, goa setting, mo!i i;ing the organi;ation 0ua ity measurement, &ua ity p anning,

grading, sorting

Responsi!i ity

,he inspection dept.

Manufacturing and 8ngineering

9pproach

1*nspects in 1 &ua ity

1/ontro s in2 &ua ity

consu tative wor+, with other departments ,program design. 9 departments a though top management on y periphera y invo ved in designing 1 Bui ds in2 &ua ity

program design.

8veryone with top mgmt. exercising strong eadership

1Manages in2 &ua ity

0=9%*,K L 0ua ity contro 3 -tatistica &ua ity contro 5-0/7 ,ota &ua ity contro 5,0/7 3 0ua ity 9ssurance 5097 ,0M. UNIT I 3*>,R<D=/,*<> PART-A 1. Define &ua ity. ". Mention any four princip es of ,0MO $. Define ,ota 0ua ityO '. Cive the Basic /oncepts of ,0MO (. %ist the dimensions of &ua ity. ). .hat are the three components of the Auran ,ri ogyO E. .hat are the six !asic concepts of ,0MO F. .hat are the pi ars of ,0MO G. Cive the <!?ectives of ,0MO 1H. Cive the 0ua ity IierarchyO 11. ,a!u ate the tangi! e and intangi! e !enefits of ,0M. 1". .hat does a typica meeting agenda contain after esta! ishing the ,0MO 1$. Mention some &ua ity awardsO 1'. %ist some !arriers of ,0M. 1(. Cive some examp es of industry adopting &ua ity concepts in their manufacturing activity. PART-= 1. Descri!e the six !asic concepts o f ,0MO ". 8xp ain the ,0M framewor+ and awareness. $. Iow do the dimensions of a &ua ity of a product & service inf uence the accepta!i ityO ' . .hat are the !enefits of ,0 MO (. 8xp ain the function of &ua ity counci . ). 8xp ain AuranJs ten steps to &ua ity improvement E. .rite short notes on /R<-BK contri!ution to ,0M. F. Brief the history of evo ution of &ua ity6 ,0M. G. 8xp ain the princip es of ,0M. 1(

1H. 8numerate the DemingJs 1' points of management. UNIT-II TQM PRINCIPLES LEADERSHIP 9 eader is one who insti s purposes, not one who contro s !y !rute force. Ie -trengthens and inspires the fo owers to accomp ish shared goa s. N##& ')* L#a&#*% -hape the <rgani;ationJs va ue Promote the <rgani;ationJs va ue Protect the <rgani;ationJs va ue and exemp ifies the <rgani;ation va ues G*#at l#a&#*% have great vision, great imagination, great ideas, !ut they a so imp ement these ideas through hardwor+, commitment and f aw ess execution. CHARACTERISTICS OF QUALITY LEADERSJ 1. ,hey give priority attention to externa and interna customers and their needs. ". ,hey empower, rather than contro , su!ordinates. $. ,hey emphasis improvement rather than maintenance. '. ,hey emphasis prevention. (. ,hey emphasis co a!oration rather than competition. ). ,hey train and coach, rather than direct and supervise. E. ,hey earn from the pro! ems. F. ,hey continua y try to improve communications. G. ,hey continua y demonstrate their commitment to &ua ity. 1H. ,hey choose supp iers on the !asis of &ua ity, not price. 11. ,hey esta! ish organi;ationa systems to support the &ua ity effort. 1". ,hey encourage and recogni;e team effort. LEADERSHIP CONCEPTSJ 9 eader shou d have the fo owing concepts 1. Peop e, Paradoxica y, need security and independence at the same time. ". Peop e are sensitive to externa and punishments and yet are a so strong y se f 3 motivated. $. Peop e i+e to hear a +ind word of praise. /atch peop e doing something right, so you can pat them on the !ac+. '. Peop e can process on y a few facts at a timeP thus, a eader needs to +eep things simp e. (. Peop e trust their gut reaction more than statistica data. ). Peop e distrust a eaderJs rhetoric if the words are inconsistent with the eaderJs actions. T$% & $A'IT( O) $I*$L+ %))%,TI-% .%O.L% /0 1r2,ovey3 1. Be Proactive 2. Begin with the End in mind 3. Put Fir t !hing Fir t ". !hin# $in % $in &. 'ee# Fir t to (nder tand) then to Be (nder tood *. 'ynergy +. 'harpen the 'aw ,-enewal.

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C)*# +alu#%2 C)!(#4t% 5 F*a$#-)*K #!a>l# ')* l#a&#*% t.*)u".)ut t.# )*"a!i,ati)! t) $aK# &i*#(t &#(i%i)!% 1. @isionary eadership ". /ustomer driven exce ence $. <rgani;ationa & persona earning '. @a uing emp oyees & partners (. 9gi ity ). #ocus on the future E. Managing for innovation F. Pu! ic Responsi!i ity ROLE OF SENIOR MANAGEMENT
1. Management !y .andering 9round 5MB.97. ". -trategy of pro! em so ving and decision ma+ing. $. -trong information !ase. '. Recognition and Reward system. (. -pending most of the time on 0ua ity. ). /ommunication. E. *dentify and encourage potentia emp oyee. F. 9ccept the responsi!i ity. G. ,o p ay a ro e mode . 1H. Remove road ! oc+s. 11. -tudy ,0M and investigate how ,0M is imp emented e sewhere. 1". 8sta! ish po icies re ated to ,0M. 1$. 8sta! ish Npriority of &ua ityJ and Ncustomer satisfactionJ as the !asic po icy. 1'. 9ssume eadership in !ringing a!out a cu tura change. 1(. /hec+ whether the &ua ity improvement programmes are conducted as p anned. 1). Become coaches and cheer eaders to imp ement ,0M. 1E. Cenerate enthusiasm for ,0M activities. 1F. @isit other companies to o!serve ,0M functioning. 1G. 9ttend ,0M training programme. "H. ,each others for the !etterment of society and the surroundings.

T.# *)l# )' TQM L#a&#*% *Deve op so utions to rea !usiness pro! ems *0ua ity improvement *Recognition for reward and award */reate awareness a!out the importance of ,0M */ommunication & change cu ture. QUALITY COUNCIL Qualit ()u!(il i% t.# t#a$ ')*$#& i! t.# )*"a!i,ati)! -it. a! )>N#(ti+# )' >uil&i!" /ualit i!t) (ultu*# )' t.# )*"a!i,ati)!0 T.# Qualit ()u!(il i% ()!%titut#& -it. all t.# %#!i)* $a!a"#*% a!& $a!a"#*% at all 'u!(ti)!al a*#a% '*)$ +a*i)u% l#+#l% )' )*"a!i,ati)!2 t.#! %uita>l# #$4l) ## *#4*#%#!tati)! '*)$ u!i)!0 ;9 &ua ity counci is esta! ished to provide overa direction. ,he counci is composed of /hief 8xecutive <fficer -enior Managers /oordinator or /onsu tant 1E

9 representative from the =nion Duti#% )' t.# ()u!(il a*# Deve op the core va ues, vision statement, mission statement and &ua ity po icy statement Deve op the strategic ong term p an with goa s and 9nnua 0ua ity *mprovement Program with o!?ectives /reate the tota education and training p an Determine and monitor the cost of poor &ua ity Determine the performance measures Determine pro?ects those improve the process 8sta! ish mu tifunctiona pro?ect and wor+ group teams Revise the recognition and rewards system O>N#(ti+#% )' Qualit ()u!(il 1. ,o raise &ua ity consciousness in the organi;ation ". ,o ensure effective functioning of the organi;ation $. ,o encourage !asic & app ied R&D in the fie d of &ua ity '. ,o raise the eve of training persons engaged in &ua ity activities (. ,o faci itate upgradation of testing & ca i!ration faci ities & a!oratories A t 4i(al $##ti!" a"#!&a -ill .a+# t.# ')ll)-i!" it#$% Progress report on teams /ustomer satisfaction report Progress on meeting goa s >ew pro?ect teams Benchmar+ing report .ithin three to five years, the &ua ity counci activities wi !ecome ingrained in the cu ture of the organi;ation. STRATEGIC QUALITY PLANNING St*at#"i( Pla!!i!" is a discip ined effort to produce fundamenta decisions and actions that shape and guide what an organi;ation is, what it does, and why it does it, with a focus on the future. Coa s : %ong term p anning 58g L .in the war7 <!?ectives : -hort term p anning 58g L /apture the !ridge7 Coa s shou d *mprove customer satisfaction, emp oyee satisfaction and process Be !ased on statistica evidence Be measura! e Iave a p an or method for its achievement Iave a time frame for achieving the goa #ina y, it shou d !e cha enging yet achieva! e SE1EN STEPS TO STRATEGIC QUALITY PLANNING : 1. Cu tomer need &. Clo ing the gap 2. Cu tomer po itioning *. /lignment 3. Predict the 0uture +. 1mplementation ". Gap analy i 1F

QUALITY STATEMENTS It i% a! )+#*all /ualit i!t#!ti)!% 5 &i*#(ti)! ')* t.# )*"a!i,ati)! -it. *#%4#(t t) /ualit 0 1ISION STATEMENTJ *t is a short dec aration of what an organi;ation aspires to !e tomorrow. E6a$4l# J Di%!# T.#$# Pa*K - Ha44i#%t 4la(# )! #a*t. P)la*)i& - I!%ta!t 4.)t)"*a4. O T) ># -)*l&-(la%% #!t#*4*i%# i! 4*)'#%%i)!al #l#(t*)!i(%<- =HARAT ELECTRONICS -uccessfu visions provide a guide ine for decision ma+ing MISSION STATEMENT J *t answers the fo owing &uestions .ho we areO .ho are the customersO .hat we doO Iow we do itO *t descri!es the function of the organi;ation. *t provides a c ear statement of purpose for emp oyees, customers & supp iers 9 simp er mission statement is OT) $##t (u%t)$#*% t*a!%4)*tati)! a!& &i%t*i>uti)! !##&% > >#i!" t.# >#%t at $)+i!" t.#i* "))&% )! ti$#2 %a'#l a!& &a$a"# '*##< - Nati)!al Rail-a % QUALITY POLICY STATEMENT J *t is guide for everyone in the organi;ation as to how they shou d provide products and services to the customers. *t shou d !e written !y the /8< with feed!ac+ from the wor+force and !e approved !y the &ua ity counci . /ommon characteristics are 0ua ity is first among e&ua s Meet the needs of the interna & externa customers 8&ua or exceed competition /ontinuous y improve the &ua ity =ti i;e the entire wor+force L#*)6 i% a /ualit ()$4a! 0 Qualit i% t.# >a%i( >u%i!#%% 4*i!(i4l# ')* L#*)60 Qualit $#a!% 4*)+i&i!" )u* #6t#*!al a!& i!t#*!al (u%t)$#*% -it. I!!)+ati+# 4*)&u(t% a!& %#*+i(#% t.at 'ull %ati%' t.#i* *#/ui*#$#!t%0 Qualit i% t.# N)> )' #+#* #$4l) ##0 LEROL CORPORATION CUSTOMER FOCUS /ustomer focusing is a techni&ue for identifying the customers products6services, &ua ity characteristics & performance measures, which is important to your !usiness. 2t 4#% 1. I!t#*!al (u%t)$#*- departments 5 every person in a process7 ". E6t#*!al Cu%t)$#*%- 8xists outside the organi;ation and genera y fa s into $ categories L current, prospective, ost customer. 5 one who uses6 purchases7 1G

CUSTOMER PERCEPTION OF QUALITYJ 1. Performance3 fitness for use ". #eatures3 secondary characteristics $. -ervice3 added va ue '. .arranty3promise (. Price3va ue for money ). Reputation3good experience6 trust Fa(t)*% i!'lu#!(i!" Cu%t)$#* 4u*(.a%#% 1. Price ". /ustomer need $. Past experience '. *nformation on company we!site (. /ompany reputation CUSTOMER ORIENTATION /ustomer orientation is of u timate importance to de iver va ue added products. 1. Deve op ". Manufacture $. Mar+et '. De iver ,hus !y these 'steps, 9 va ue added product is de ivered. FEED=ACK 9INFORMATION COLLECTING TOOLS:J O +)i(# )' (u%t)$#*< #eed!ac+ ena! es organi;ation to Discover customer satisfaction Discover re ative priorities of &ua ity /ompare performance with the competition *dentify customer needs Determine opportunities for improvement %istening to the voice of the customer can !e accomp ished !y numerous information co ecting too s. 1. /omment /ard ". /ustomer 0uestionnaire Highly Neutral Highly Sati%'i#& Di%%ati%'i#& 1. ,rash remova ( ' $ " 1 ". Persona hygiene ( ' $ " 1 ,o ma+e surveys more usefu , it is !est to remem!er eight points / ients and /ustomers are not the same -urveys raise customers expectations Iow you as+ a &uestion wi determine how the &uestion is answered ,he more specific the &uestion, the !etter the answer Kou have on y one chance and on y 1( minutes ,he more time you spend in survey deve opment, the ess time you wi spend in data ana ysis and interpretation .ho you as+ is as important as what you as+ "H

Before the data are co ected, you shou d +now how you want to ana yse and use the data $. #ocus Croups ,hese groups are very effective for gathering information on customer expectations and re&uirements. '. ,o : #ree ,e ephone >um!ers (. /ustomer @isits ). Report /ard E. ,he *nternet and /omputers F. 8mp oyee #eed!ac+ 9. Mass Customization USING CUSTOMER COMPLAINTS J 9ctions an organi;ation can ta+e to hand e comp aints are as fo ows *nvestigate customers experiences !y active y getting feed !ac+, !oth positive and negative, and then acting on it prompt y Deve op procedures for comp aint reso ution that inc ude empowering front : ine personne . 9na y;e comp aints, !ut understand that comp aints do not a ways fit into neat categories. .or+ to identify process and materia variations and then e iminate the root cause. 1More inspection2 is not corrective action. .hen a survey response is received, a senior manager shou d contact the customer and strive to reso ve the concern. 8sta! ish customer satisfaction measures and constant y monitors them. H STEPS TO RESOL1E CUSTOMER COMPLAINTS 1. %isten intent y ". ,han+ them $. 9po ogi;e '. -ee+ the !est so ution (. Reach agreement ). ,a+e &uic+ 9ction E. #o ow up CUSTOMER RETENTION *t means 1retaining the customer2 to support the !usiness. *t is more powerfu and effective than customer satisfaction. #or /ustomer Retention, we need to have !oth 1/ustomer satisfaction & /ustomer oya ty2. T.# ')ll)-i!" %t#4% a*# i$4)*ta!t ')* (u%t)$#* *#t#!ti)!. 1. ,op management commitment to the customer satisfaction. ". *dentify and understand the customers what they i+e and dis i+e a!out the organi;ation. $. Deve op standards of &ua ity service and performance. '. Recruit, train and reward good staff. (. 9 ways stay in touch with customer. ). .or+ towards continuous improvement of customer service and customer retention. E. Reward service accomp ishments !y the front3 ine staff. "1

F. /ustomer Retention moves customer satisfaction to the next eve !y determining what is tru y important to the customer G. /ustomer satisfaction is the connection !etween customer satisfaction and !ottom ine. 1H. *t moves to next eve of customer de ight. S#*+i(# Qualit L uses to win & retain customers *8 ements of customer service 1. <rgani;ation3 Re&uirements of customer ". /ustomer service3 customer expectations $. /ommunication3 persona attention6 contact points '. #ront3 ine peop e3 hire, reward, authority (. eadership3 ead

E$4l) ## I!+)l+#$#!tL

Q8mp oyee invo vement is one approach to improve &ua ity and productivity. Q*t is a means to !etter meet the organi;ationJs goa s for &ua ity and productivity. MOTI1ATION =nderstanding motivation theories he ps us in uti i;ation of emp oyee invo vement to achieve process improvement. 10MASLO73S HIERARCHY OF NEEDS J Su*+i+al P-A S#(u*it S)(ial E%t##$ S#l'-a(tuali%ati)!0 %eve 1 L Su*+i+al 3 food, c othing and she ter which is usua y provided !y a ?o!. *n the wor+p ace, proper ighting, heating6airconditioning, venti ation, Phone system, data6voice access and computer information system. S#(u*it 3 safe p ace to wor+ and ?o! security which are very important to emp oyees. S)(ial3 re ates to our need to !e ong. Civing a individua the opportunity to !e part of the group !y fee ing important and needed wi motivate that person. Being a mem!er of a team is a good way to !ring emp oyees into the group. E%t##$ : re ates to pride or se f3worth. 8veryone wants to recogni;e as a person of va ue to the organi;ation. Business cards, wor+space si;e, and office protoco s a so provide emp oyees with a certain eve of se f3esteem within an organi;ation. S#l' P A(tuali,ati)! : individua s must !e given the opportunity to go as far as their a!i ities wi ta+e them. Many organi;ations have a po icy of promoting from within. ". HERQ=ERG3S T7O-FACTOR THEORY MOTI1ATORS *t is found that peop e are motivated !y recognition, responsi!i ity, achievement, advancement and the wor+ itse f. HYGIENE FACTORS ,he !ad fee ing is associated with ow sa ary, minima fringe !enefits, poor wor+ing conditions, i 3defined organi;ation po icies.

""

*ntrinsic in nature

,hese factors were a!e ed dissatisfiers. 8xtrinsic in nature

E0 EMPLOYEE 7ANTS J 3333333333333333333333333333333333333333333333333333333333333333333333333333333333333333333333333333333333333333 Fa(t)* E$4l) ## Rati!" Ma!a"#* Rati!" 3333333333333333333333333333333333333333333333333333333333333333333333333333333333333333333333333333333333333333 *nteresting wor+ 1 ( 9ppreciation " F *nvo vement $ 1H Ao! security ' " Cood Pay ( 1 Promotion6 growth ) $ Cood wor+ing conditions E ' %oya ty to emp oyees F E Ie p with persona pro! ems G G ,actfu discip ine 1H ) 3333333333333333333333333333333333333333333333333333333333333333333333333333333333333333333333333333333333333333 D0 ACHIE1ING A MOTI1ATED 7ORK FORCE J ,he !ui ding of a motivated wor+ force if for the most part an indirect process. /oncepts to achieve a motivated wor+ force are as fo owsL 1. Dnow thyse f 5managers73 strength & wea+ness ". Dnow your emp oyees3 managers earns a!out emp oyee $. 8sta! ish a positive attitude.3as+ opinions5ideas7 '. -hare the goa s. (. Monitor progress3 periodica y review performance ). Deve op interesting wor+3 a tering the emp oyees assignments 45o6 rotation : permits emp oyees to switch ?o!s within a wor+ unit for a prescri!ed period of time. Reduces !oredom and provides +now edge of the entire wor+ process J)> Q #!la*"#$#!t 3 com!ines tas+s hori;onta y, so that the emp oyee performs num!er of ?o!s se&uentia y. RJ)> #!*i(.$#!t : com!ines tas+s vertica y !y adding manageria e ements such as p anning, schedu ing and inspection. 9 the a!ove ead to process improvement. E. /ommunicate effective y F. /e e!rate success3 reward and recognition EMPLOYEE SUR1EYS J 8mp oyee surveys he p managers assess the current state of emp oyee re ations, identify trends, measure the effectiveness of program imp ementation, identify needed improvements, and increase communication effectiveness. *Persona ity /haracteristics3 9nxiety, -e f 8steem, 9!i ity to participate in the organi;ation. * Management -ty es3 /onsideration of su!3ordinates, initiating structure, commitment to &ua ity. "$

*Ao! 9ttitudes3 Ao! satisfaction, socia support and co3wor+erJs commitment to &ua ity. *,he .or+3 ,as+ variety ,he -urveys are compi ed and ana y;ed and a report is prepared for the &ua ity counci . -urveys are administered every 1" to 1Fmonths during norma wor+ing hours. STEP 1 J ,he 0ua ity /ounci to create a mu tifunctiona team STEP 2 L ,he ,eam wi deve op survey instrument STEP E L 9dminister the survey STEP D L Resu ts are compi ed and ana y;ed STEP F L Determine areas for improvement3 wor+ unit eve , cross !oundaries among wor+ group. By istening to the voice of the emp oyee, the organi;ation can receive feed!ac+ to ensure a thriving ,0M effort. EMPO7ERMENT 8mpowerment is investing peop e with authority. *tJs purpose is to tap the enormous reservoir of potentia contri!ution that ies within every wor+er. E()!&ti)!% t) (*#at# #$4)-#*#& #!+i*)!$#!t 1. 8veryone must understand the need for change ". ,he system needs to change to the new paradigm $. ,he organi;ation must ena! e its emp oyees. ,he two steps to empowerment are 1. ,o arm peop e to !e successfu through coaching, guidance and training. ". %etting peop e do !y themse ves. T.# 4*i!(i4l#% )' #$4)-#*i!" 4#)4l# a*# "i+#! >#l)-0 1. ,e peop e what their responsi!i ities are. ". Cive authority. $. -et standards for exce ence. '. Render training. (. Provide +now edge and information. ). ,rust them. E. 9 ow them to commit mista+es. F. ,reat them with dignity and respect. ,hree dimensions of empowerment are Q/apa!i ity Q9 ignment and Q,rust TEAMS 8mp oyee invo vement is optimi;ed !y the use of teams. 9 tea# is defined as a group of peop e wor+ing together to achieve common o!?ectives or goa s. Tea#wor7 is the cumu ative actions of the team during which each mem!er of the team su!ordinates his individua interests and opinions to fu fi the o!?ectives or goa s of the group. "'

7HY TEAMS 7ORK J Many heads are more +now edgea! e than one. ,he who e is greater than the sum of its mem!ers. ,eam mem!ers deve op a rapport which each other. ,eams provide the vehic e for improved communication. By Aapanese in 1G)13R 0ua ity contro circ e are groups of peop e from wor+ unit, who vo untari y meet together on a regu ar !asis to identify, ana y;e, so ve &ua ity &other pro! ems within their area. TYPES OF TEAMS J 9 t#a$ ()!%i%t% )' G t) 10 $#$>#*%: *Process improvement team3 process expertise */ross : functiona team3 engineering, mar+eting, accounting, production, &ua ity, IR *>atura wor+ teams3 pro?ect *-e f : Directed 6 -e f : Managed wor+ teams3 without supervisor, not on y do wor+ !ut a so manage it. CHARACTERISTICS OF SUCCESSFUL TEAMS J 1. -ponsor ". ,eam /harter $. ,eam /omposition '. ,raining (. Cround Ru es ). / ear <!?ectives E. 9ccounta!i ity F..e 3Defined decision procedure G. Resources 1H. ,rust 11.8ffective Pro! em -o ving 1". <pen /ommunication 1$. 9ppropriate %eadership 1'. Ba anced Participation 1(. /ohesiveness TEAM MEM=ER ROLES L 10TEAM LEADER 8nsures the smooth and effective operation of the team. #aci itates the team process. -erves as a /ontact Point. <rgani;es the imp ementation of changes. Prepares the meeting agenda. 20FACILITATOR -upports the eader. #ocuses on the team process. 9cts as a resource to the team. Provides feed!ac+ to the team. $.RECORDER- %#l#(t#& > l#a&#* a!& *)tat#& )! 4#*i)&i( >a%i% Documents the main ideas of the teamJs discussion, the issues raise, decisions made, action items etc. Presents the documents and distri!utes the M<M5Minutes <f Meeting7 Participates as a team mem!er. "(

'.TIMEKEEPER- %#l#(t#& > l#a&#* )* t#a$ 8nsures that the team maintains the schedu e. Participates as a team mem!er. (.TEAM MEM=ER- %#l#(t#& > t.# l#a&#*2 %4)!%)* )* /ualit ()u!(il /ontri!utes !est, without reservation. Respects other peop eJs contri!utions. %istens carefu y and as+s &uestions. .or+s for consensus on decisions. -upports the decision of the team. =nderstands and is committed to the team o!?ectives. Respects and is to erant of individua differences. 9c+now edges and wor+s through conf ict open y. /arries out assignments. ;Sta"#% )' t#a$ &#+#l)4$#!t 1. #orming3!eginning stage ". -torming3conf ict eads to positive movements towards goa s $. >orming3wor+ together, emotiona conf ict reduced '. Performing3 understand their ro es *9d?ourning3temporary teams DECISION MAKING METHODS J *>on3decision3 not arrived at so ution *=ni atera decision3 made !y one person. *Iandc asp decision3 one person proposes and another agrees. *Minority3ru e decision. *Ma?ority3ru e decision. */onsensus3 discussion from a mem!ers COMMON =ARRIERS TO TEAM PROGRESS J 1.*nsufficient training. ".*ncompati! e rewards and compensation. $.#irst3 ine supervisor resistance. '.%ac+ of p anning. (.%ac+ of management support. ).9ccess to information systems. E.%ac+ of =nion support. F.Pro?ect scope too arge. G.Pro?ect o!?ectives are not significant. 1H.>o c ear measures of success. 11.>o time to do improvement wor+. RECOGNITION AND RE7ARD Recognition is a process !y which management shows ac+now edgement of an emp oyeeJs outstanding performance. RE7ARD is giving of financia !enefits in+ed to performance. ")

1a*i)u% -a % ')* R#()"!iti)! a!& R#-a*&% a*# 1. Recognition can !e expressed using ver!a and written praise. ". Rewards may !e in the form of certificates and p a&ues. $. Reward is norma y in the form of cinema tic+ets, dinner for fami y etc. '. ,he financia compensation 5for recognition7 can !e paid in terms of increased sa aries, commissions, gain sharing etc. (. ,he efforts of emp oyees can !e recogni;ed !y promotions, specia ?o! assignments etc. ). 9 etter of appreciation from the /8< or the ,op Management wi increase the emp oyeeJs invo vement. E. Reward may !e de ayed !ut recognition shou d !e in a time y !asis. F. Rewards shou d !e appropriate to the improvement eve . G. Peop e i+e to !e recogni;ed than any reward. 1H. -pecia forms of recognition inc ude pictures on the !u etin !oard, artic es in news etters, etter to fami ies etc. 11. -upervisors can give on3the3spot praise for a ?o! which is done we . EFFECTS OF RECOGNITION AND RE7ARD SYSTEM J *Recognition and reward go together for etting peop e +now that they are va ua! e mem!ers for the organi;ation. *8mp oyee invo vement can !e achieved !y recognition and reward system. *Recognition and reward system revea s that the organi;ation considers &ua ity and productivity as important. **t provides the organi;ation an opportunity to than+ high achievers. **t provides emp oyees a specific goa to achieve. **t motivates emp oyees to improve the process. **t increases the mora e of the wor+ers. I!&i+i&ual R#-a*&- Cift coupons, -a ary hi+e, trips, incentives. G*)u4 R#-a*&3 /ash pri;es, team outing, group unch or dinner, fami y get3together. ;Gai! %.a*i!" is financia reward and recognition system that resu ts from improved organi;ationa performance. *t is different than profitsharing, in which the stoc+ho ders share a portion of the year3end profits with sa aried and occasiona y hour y emp oyees. ,hus, gainsharing is a measurement of organi;ationa productivity and a method to share productivity gains. Cain shareing is a wide y used po icy in software and engineering services in *ndia. 8g, I/% ,8/I><%<C*8- which adopted this gain sharing concept PERFORMANCE APPRAISAL ,he performance appraisa is used to et emp oyees +now how they are performing. ,he performance appraisa !ecomes a !asis for promotions, increase in sa aries, counse ing and other purposes re ated to an emp oyeeJs future. IMPORTANCE OF PERFORMANCE APPRAISALS J **t is necessary to prevai a good re ationship !etween the emp oyee and the appraiser. *8mp oyee shou d !e informed a!out how they are performing on a continuous !asis, not ?ust at appraisa time. *,he appraisa shou d high ight strength and wea+ness and how to improve the performance. *8mp oyee shou d !e a owed to comment on the eva uation and protest if necessary. "E

*8veryone shou d understand that the purpose of performance appraisa is to have emp oyee invo vement. *8rrors in performance eva uations shou d !e avoided. *=nfair and !iased eva uation wi render poor rating and hence shou d !e e iminated. P#*')*$a!(# a44*ai%al % %t#$ ># i$4*)+#&2 1. =se rating sca es that have few rating categories ". Re&uire wor+ team or group eva uations that are east e&ua in emphasis to individua 3 focused eva uations $. Re&uire more fre&uent performance reviews where such reviews wi have a dominant emphasis on future performance p anning. '. Promotion decisions shou d !e made !y the independent administrative process that draws on current ?o! information and potentia for the new ?o! (. *nc ude indexes of externa customer satisfaction in the appraisa process. ). =se peer and su!ordinate feed!ac+ =ENEFITS OF EMPLOYEE IN1OL1EMENT L 8mp oyee invo vement improves &ua ity and increases productivity !ecause 8mp oyees ma+e !etter decisions using their expert +now edge of the process 8mp oyees are !etter a! e to spot and pin3point areas for improvement. 8mp oyees are !etter a! e to ta+e immediate corrective action. 8mp oyee invo vement reduces a!our 6 management friction. 8mp oyee invo vement increases mora e. 8mp oyees have an increased commitment to goa s !ecause they are invo ved. C)!ti!u)u% P*)(#%% I$4*)+#$#!t /ontinuous process improvement is designed to uti i;e the resources of the organi;ation to achieve a &ua ity3driven cu ture. *mprovement is made !y @iewing a wor+ as process. Ma+ing a process effective, efficient and adapta! e. 9nticipating changing customer needs. /ontro ing in3process performance using measures such as scrap reduction, contro charts etc. 8 iminating waste and re3wor+. 8 iminating non3va ue added activities. 8 iminating non3conformities. =sing Benchmar+ing. *ncorporating earned essons into future activities. =sing technica too s such as -P/, !enchmar+ing, experimenta design, 0#Detc.

PRO E!! : "F

Process refers to business and production activities of an organization. Input " Output Pro#ess Model

'!! ()C* **
O$%P$%
*nformation, Data, Product, -ervice, etc.

Materials, Money, Materia s, Information, Money, ata, etc. *nformation, PRO E!! Data, etc. People, !"uipment, Method

INP$%

PRO E!!
Peop e, 8&uipment, Method, Procedures, 8nvironment, Materia s

#$%C#M! &

C#+ I%I#+ & ,here are five !asic ways for improvement.

Reduce resources. Reduce errors. Meet or exceed expectations of downstream customers. Ma+e the process safer. Ma+e the process more satisfying to the person doing it. THE JURAN TRILOGY 10 PLANNING Determine interna & externa customers. ,heir needs are discovered. Deve op product 6 service features. Deve op the processes a! e to produce the product 6 service features. ,ransfer p ans to operations. 20 CONTROL /ontro is used !y operating forces to he p meet the product, process and service re&uirements. *t consists of the fo owing steps 1. Determine items to !e contro ed. ". -et goa s for the contro s. $. Measure actua performance. '. /ompare actua performance to goa s. (. 9ct on the difference. E0 IMPRO1EMENT 9ims to attain eve s of performance that are higher than current eve s. *t consists of the fo owing steps 8sta! ishment of &ua ity counci . "G

*dentify the improvement pro?ects. 8sta! ish the pro?ect teams with a pro?ect eader. Provide the team with the resources. THE PDSA CYCLE J

ACT

PLAN

/I8/D

D<

PRO=LEM SOL1ING METHOD J 10 IDENTIFY THE OPPORTUNITY *dentify the Pro! em Pareto ana ysis of externa a arm signa s. Pareto ana ysis of interna a arm signa s. Proposa s from +ey insiders. Proposa s from suggestion schemes. #ie d study of userJs needs. /omments of +ey peop e outside the organi;ation. /ustomer surveys. 8mp oyee surveys. Brainstorming !y wor+ groups. #orm the ,eam ,eam shou d !e se ected. Coa s and mi estones are esta! ished. $H

Define the -cope. C*it#*ia ')* a "))& 4*)>l#$ %tat#$#!t i% a% ')ll)-% *t c ear y descri!es the pro! em. *t states the effect. *t focuses on what is +nown, un+nown etc. *t emphasi;es the impact on the customer. 20 ANALYQE THE CURRENT PROCESS ,he o!?ective is to understand the process and how it is current y performed. -tep 1 L ,he team to deve op a process f ow diagram. -tep " L ,he target performance measures are defined. -tep $ L /o ection of a avai a! e data and information. C)$$)! it#$% )' &ata a!& i!')*$ati)! a*# 1. /ustomer information ". Design information $. Process information '. -tatistica information (. 0ua ity information ). -upp ier information E0 DE1ELOP THE OPTIMAL SOLUTION9S: ,his phase has the o!?ective of esta! ishing potentia and feasi! e so utions and recommending the !est so ution to improve the process. /reativity p ays the ma?or ro e, and !rainstorming is the principa techni&ue. ,here are three types of creativityL /reate new processes /om!ine different processes Modify the existing process D0 IMPLEMENT CHANGES ,his phase has the o!?ective of preparing the imp ementation p an, o!taining approva and imp ementing the process improvements. 9pprova of the &ua ity counci . <!tain the advice and consent of departments, functiona areas, teams, individua s etc. Monitor the activity. F0 STUDY THE RESULTS ,his phase has the o!?ective of monitoring and eva uating the change !y trac+ing and studying the effectiveness of the improvement efforts. G0 STANDARDIQE THE SOLUTION *nstitutiona i;e !y positive contro of the process. ,he &ua ity periphera s : the system, environment and supervision must !e certified. <perators must !e certified. H0 PLAN FOR THE FUTURE ,he o!?ective is to achieve improved eve of process performance. Regu ar y conduct reviews of progress !y the &ua ity counci . $1

8sta! ish the systems to identify area for future improvements. ,rac+ performance with respective interna & externa customers. ,0M too s and techni&ues are used to improve &ua ity, de ivery and cost.

F-S J HOUSEKEEPING
SEIRI -------------- SEITON ------------ SEIKETSU-------- SEISO -------------- SHITSUKE-------- /%89R*>C 9RR9>C*>C -.88P*>C /%89>%*>8-D*-/*P%*>8

,here can !e no ,0M without (3-. 9 dirty factory cannot produce &ua ity products. / utter hides pro! ems. 9 neat wor+p ace promotes easy discovery of a!norma ities. (3/<>,R*B=,8,< -9#8,K 0=9%*,K PR<D=/,*@*,K

(3#aci itates F-S MEANS

@*-=9% /<>,R<% E1ERYTHING IN ITS PLACE

T.# Fi*%t S J SEIRI J CLEARING Fa(t)* Fl))* O''i(# H)$# Machines to !e =sed 6 Bro+en Bro+en toys scrapped pens Re?ected materia =se ess paper < d c othes 8xpired goods < d diaries Bro+en suitcases Bro+en too s, Bro+en furnitures pa ets, !ins,tro eys. < d notices Fl)- C.a*t J -eparating the wanted and unwanted Aun+ & waste Repaira! e .anted items >o use Repair Discard ,o next step C)!%#/u#!(#% )' !)t 4*a(ti(i!" SEIRI J ,he unwanted c utters up the p ace and the wanted are hard to find. 8very p ace can on y ho d so much. $"

/ utter sometimes causes misidentification. ,a+e out unnecessary items and throw them away T.# S#()!& S J SEITON J ARRANGING Fa(t)* Fl))* O''i(# H)$# =n a!e ed too cri! =n a!e ed fi e ca!inet / utter / uttered she ves / uttered drawer, >o order y oc+ers etc. she ves, !oo+ cases, arrangement in ta! es the rooms -tores : no c ear Records & documents ocation system. >ot arranged we ,hings on the f oor #i e heaps and papers C)!%#/u#!(#% )' !)t 4*a(ti(i!" SEITON J ,hings are se dom avai a! e when needed. *tems are 1 ostJ in stores. *tems : defectives and good ones get mixed up. 9ccidents or near3accidents occur due to c utter. @isua contro of the shop f oor is not possi! e. -ometimes, production is ost !ecause an item re&uired is avai a! e !ut cannot !e found. *n some offices, /ritica 8xcise records or tax records may not !e tracea! e. ,his can ead to finance oss, prosecution or em!arrassment. T.# T.i*& S J SEISO J S7EEPING Fa(t)* Fl))* O''i(# H)$# Dirty machines Dirty ta! e & furniture Dirty furniture, f oor, Dust on product window, gri s, parts, R.Mt s. !oo+she ves. Dirty ?igs, fixtures Dirty office e&uipments Dirty wa s, roofs %ittered f oor %ittered f oor Dirty windows C)!%#/u#!(#% )' !)t 4*a(ti(i!" SEISO J Most machines are affected !y dust & dirt and hence their performance may go down. Dust and dirt on products, materia s, pac+ing !oxes etc. wi affect either their performance &ua ity or their aesthetic oo+. =np easant to wor+ in. 9rrange everything in proper order so that it can !e easi y pic+ed up for use. -weep your wor+p ace thorough y so that there is no dust anywhere. T.# F)u*t. S J SEIKETSU J CLEANLINESS Fa(t)* Fl))* O''i(# H)$# Iand ing ha;ardous #ree of pests Pest contro chemica s Persona hygiene Persona hygiene /ontro of fumes, ha;ardous dust. Disinfecting, Persona hygiene C)!%#/u#!(#% )' !)t 4*a(ti(i!" SEIKETSU J Cood hea th and safety re&uire the practice of -ei+etsu. Ia;ardous chemica s, dusty chemica s, fumes etc. can ma+e it a dangerous p ace to wor+ in. .ashing thorough y and c eaning a p ace ma+es the wor+p ace p easant. Persona hygiene is essentia for hea thy wor+force. T.# Fi't. S J SHITSUKI J DISCIPLINE C)!%#/u#!(#% )' !)t 4*a(ti(i!" SEIKETSU J *f discip ine is not practiced, then the first '3- wou d !ac+s ide. %ac+ of -hitsu+i means not fo owing the standards. ,hen, a activities re ated to safety and &ua ity wi !e affected. $$

IMPLEMENTING F-S 1. ,op Management reso ve and training. ". #ormation of a top eve team. $. =nderstanding current circumstances. '. 8sta! ishing priorities and targets. (. #orming su!3teams and training. ). Ma?or c eaning. E. 8sta! ishing improvement p ans in each priority area. F. *mp ementing the p an. G. @erifying resu ts. 1H. -tandardi;ing. 11. 8sta! ishing fu contro . 1". %oo+ing for further improvements. .ashing with a strong overtone of +eeping things disinfected as we as free of ha;ardous chemica s. Discip ine especia y with regard to safety ru es and punctua ity. KAIQEN- Kai $#a!% O(.a!"#<2 Q#! $#a!% O')* >#tt#*<2 Kai,#! $#a!% O(.a!"# ')* >#tt#*< Dai;en is a Aapanese word for the phi osophy that defines managementJs ro es in continuous y encouraging and imp ementing sma improvements invo ving everyone. *t focuses on simp ification !y !rea+ing down comp ex processes into their su! : processes and then improving them. 8.g, /ope and corporations manufacturer of air conditioner and refrigerator. T.# Kai,#! i$4*)+#$#!t ')(u%#% )! t.# u%# )' J @a ue : added and non : va ue wor+ activities. Muda, which refers to the seven c asses of waste : over3production, de ay, transportation, processing, inventory, wasted motion, and defective parts. Princip es of motion study and the use of ce techno ogy. Princip es of materia s hand ing and use of one : piece f ow. Documentation of standard operating procedures. ,he five -Js for wor+p ace organi;ation. @isua management. Aust : in : time princip es. Po+a : Ko+e is used to detect errors. ,eam dynamics. RE-ENGINEERING *t is the fundamenta rethin+ing and radica redesign of !usiness processes to achieve dramatic improvements in critica measures of performance. SUPPLIER PARTNERSHIP $'

,he supp iers shou d !e treated as partners to achieve the same &ua ity eve as attained within the organi;ation. ,he fo owing forces need -upp ier Partnership to improve &ua ity, reduce costs and increase mar+et share. Deming Phi osophy 5DemingJs 'th point7 Aust3in3time /ontinuous process improvement *-< GHHH PRINCIPLES OF CUSTOMER P SUPPLIER RELATIONS J Dr. Daoru *shi+awa has given ten princip es of customer3supp ier re ations. ,hey are 1. Both the customer and supp ier are fu y responsi! e for the contro of &ua ity. ". Both the customer and supp ier shou d !e independent of each other. $. ,he customer is responsi! e for providing the supp ier with c ear and sufficient re&uirements so that the customer can +now precise y what to produce. '. Both the customer and supp ier shou d enter into a non3adversaria contract. (. ,he supp ier is responsi! e for providing the &ua ity that wi satisfy the customer. ). Both the customer and supp ier shou d decide the method to eva uate the &ua ity of the product or services. E.Both the customer and supp ier shou d esta! ish in the contract the method !y which they can reach an amica! e sett ement in case of any dispute. F. Both the customers and supp ier shou d continua y exchange information. G. Both the customer and supp ier shou d perform !usiness activities. 1H.Both the customer and supp ier shou d have the !est interest of the end user in mind.

PARTNERING
Partnering is a re ationship !etween two or more parties !ased upon trust, dedication to common goa s. T.# >#!#'it% )' 4a*t!#*i!" a*# *mproved &ua ity *ncreased efficiency %ower cost *ncreased opportunity for innovation /ontinuous improvement T.# t.*## K# #l#$#!t% t) a 4a*t!#*%.i4 *#lati)!%.i4 a*# %ong term commitment ,rust -hared @ision

SOURCING
,he three types of sourcing are -o e sourcing Mu tip e sourcing -ing e sourcing $(

SUPPLIER SELECTION
,he supp iers shou d !e se ected with the ')ll)-i!" t#! ()!&iti)!% 1. ,he supp ier shou d understand c ear y the management phi osophy of the organi;ation. ". ,he supp ier shou d have sta! e management system. $. ,he supp ier shou d maintain high technica standards. '. ,he supp ier shou d provide the raw materia s and parts which meet &ua ity specifications re&uired !y the purchaser. (. ,he supp ier shou d have the re&uired capa!i ity in terms of production. ). ,he supp ier shou d not ea+ out the corporate secrets. E. ,he supp ier shou d &uote right price and shou d meet the de ivery schedu e. ,he supp ier shou d !e accessi! e with respect to transportation and communication. F. ,he supp ier shou d !e sincere in imp ementing the contract provisions. G. ,he supp ier shou d have an effective &ua ity system such as *-< 6 0- GHHH. 1H. ,he supp ier shou d !e renowned for customer satisfaction. T.# +a*i)u% %ta"#% )' %u44li#* %#l#(ti)! 1.*ntia short isting ".8n&uiry stage $. -e ection '. >egotiation (.8va uation stage SUPPLIER CERTIFICATION L 9 certified supp ier is one which, after extensive investigation, is found to supp y materia of such &ua ity that is not necessary to perform routine testing. T.# Ei".t (*it#*ia ')* %u44li#* (#*ti'i(ati)! a*# 1. >o product re ated ot re?ections for at east 1 year. ". >o non3product re ated re?ections for at east ) months. $. >o production re ated negative incidents for at east ) months. '. -hou d have passed a recent on3site &ua ity system eva uation. (. Iaving a fu y agreed specifications. ). #u y documented process and &ua ity system. E. ,ime y copies of inspection and test data. F. Process that is sta! e and in contro . SUPPLIER RATING J -upp ier Rating is done *,o o!tain an overa rating of supp ier performance. *,o communicate with supp iers regarding their performance. *,o provide each supp ier with a detai ed and true record of pro! ems for corrective action. *,o enhance the re ationship !etween the !uyer and the supp ier. 9 successfu supp ier rating re&uires t.*## K# 'a(t)*% 1. 9n interna structure to imp ement & sustain the rating program ". 9 Regu ar and forma review process $. 9 standard measurement system for a the supp iers. RELATIONSHIP DE1ELOPMENT J F)* #%ta>li%.$#!t )' %u44li#* *#lati)!%.i42 t.# ')ll)-i!" a*# !#(#%%a* 0 Partnering $)

-upp ier se ection Princip es of customer 6 supp ier re ations /ertification Periodic rating F)* *#lati)!%.i4 &#+#l)4$#!t2 t.# ')ll)-i!" a*# !#(#%%a* 0 1.*nspection *1HHM inspection *-amp ing *9udit **dentity chec+ ".,raining $.,eams '.Recognition and Reward PERFORMANCE MEASURES Performance measures are re&uired for the managers for managing an organi;ation perfect y. Performance measures are used to achieve the fo owing o!?ectives. ,o esta! ish performance measures and revea trend. ,o identify the processes to !e improved. ,o determine the process gains and osses. ,o compare the actua performance with standard performance. ,o provide information for individua and team eva uation. ,o determine overa performance of the organi;ation. ,o provide information for ma+ing proper decisions. 7HAT SHOULD =E MEASURED8 Hu$a! *#%)u*(#% 1. %ost time due to accidents, a!senteeism. ". 8mp oyee turnover. $. 8mp oyee satisfaction index. '. ,raining cost per emp oyee. (. >um!er of grievances. Cu%t)$#*% 1. >um!er of comp aints from customers. ". >um!er of on3time de iveries. $. .arranty data. '. Dea er satisfaction. P*)&u(ti)! ". *nventory. $. -P/ /harts. '. 9mount of scrap 6 rewor+. (. Machine down time. R#%#a*(. a!& D#+#l)4$#!t ". >ew product time to mar+et. $. Design change orders. '. /ost estimating errors. Su44li#*% $E

". <n3time de ivery. $. -ervice rating. '. 0ua ity performance. (. 9verage ead time. Ma*K#ti!" @ Sal#% ". -a es expense to revenue. $. >ew product sa es to tota sa es. '. >ew customers. A&$i!i%t*ati)! 1. Revenue per emp oyee. ". Purchase order error. $. Bi ing accuracy. '. /ost of poor &ua ity. STRATEGY J ,he &ua ity counci has the overa responsi!i ity for the performance measures.*t ensures that a the measures are integrated into a tota system of measures. 9 typica system contains the fo owing function 0ua ity /ost # exi!i ity Re ia!i ity *nnovation PERFORMANCE MEASURE PRESENTATION J ,here are six !asic techni&ues for presenting performance measures. ,hey are 1. ,ime series graph. ". /ontro charts. $. /apa!i ity *ndex. '. ,aguchiJs oss function. (. /ost of poor &ua ity. ). Ma co m Ba drige >ationa 0ua ity 9ward. *n MB>09, five categories are ana y;ed. ,hey are a7 Manufacturing !7 -ervice c7 -ma !usiness d7 Iea th care e7 8ducation
UNIT-II PART-A 1. Define eadership ". .hat is &ua ity counci O $. %ist some of the ro e of senior management ' .ho are interna and externa customers with examp eO (. .hat is meant !y vision, mission and &ua ity po icy statement. ). %ist the various too s used for co ecting customer comp aints. E. .hat is meant !y customer retentionO F. .hat is customer perception &ua ityO G. Cive the causes for customer comp iant with examp es. 1H. .hat is motivationO

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11. %ist the Ier;!ergJs motivators and dissatisfies. 1". Define empowerment. 1$. .hat are the conditions necessary for empowermentO 1'.. Define team and teamwor+. 1(. %ist the different types of teams. 1). >ame different mem!ers in a team. 1'. .hat is needed for a eader to !e effectiveO 1(. 8xp ain the stages of team deve opment. 1). .rite some common !arriers in team progress. 1E. Cive the !asic steps to strategic &ua ity p anningO 1F. .hat is meant !y recognition in an organi;ationO 1G. / assify rewards. "H. .hat is performance appraisa O "1. .hat are the !enefits of emp oyee invo vementO "". .hat are the !asic ways for a continuous process improvementO "$. .hat are the three components of the Auran ,ri ogyO "'. .hat are the steps in the PD-9 cyc eO "(. .hat are the phases of a /ontinuous Process *mprovement /yc eO "). .hat are the three +ey e ements to a partnering re ationshipO "E. .hat are the o!?ectives of Performance measuresO "F . .hat is M=D9O3 -ystematic reduction or e imination of waste 5 E c asses of waste7 "G. Define (-O $H. .hat is a Dai;enO $1. .hat is supp ier partneringO $". .hat is supp ier ratingO $$. .hat is supp ier certificationO $'. .hat is shared visionO $(. .hat is (.J- and one I chec+ ist.5.hat, why, where, when, who, & how7 $). .hat is meant !y @oice of customer 5@</7O $E. 8xp ain Cainsharing. $F. .hat are the various decisions made !y a teamO PART-= 1. 8xp ain the characteristics of an &ua ity eader, E ha!its of effective peop e . ". 8xp ain the ro e of -enior management. $. .rite a!out &ua ity counci in detai s '. 8xp ain the seven steps of strategic p anning. (. .rite a!out &ua ity statement with an examp e. ). 8xp ain in detai a!out various methods used for o!taining customer feed!ac+ and deve op the strategy to retain the customer. E. 8xp ain the fo owing princip e, 5i7. ( - 5ii7 +ai;en. F. 8xp ain a!out -upp ier rating and re ationship deve opment. G. .hat are the customer perceptions of &ua ityO 1H. .hat is teamO 8xp ain the different types of teamO Mention the characteristics of a successfu team. 11. Discuss a!out Mas owJs need hierarchy theory and Ier;!ergJs two factor theory for motivation. 1". .hat are the princip es of customer 6 supp ier re ationsO 1$. 8numerate any eight actions that an organi;ation sha ta+e to hand e comp aints. 1'. 8xp ain the importance of different recognition and reward system in an organi;ation. 1(. Iow wi you se ect a supp ier.

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