Core values of Total Quality Management

1. Customer-Driven Quality

 Quality is judged by customers. All product and service

characteristics that contribute value to the customer
and lead to customer satisfaction, preference, and
retention must be the focus of an organization's
management system.
 Value and satisfaction may be influenced by many
factors throughout the customer's overall purchase,
ownership, and service experiences.
 These factors include the organization's relationship
with customers that helps build trust, confidence, and
loyalty.
 Customer-driven quality is thus a strategic concept. It
is directed toward customer retention, market-share
gain, and growth.
 It demands constant sensitivity to changing and
emerging customer and market requirements and the
factors that drive customer satisfaction and retention.

2. Leadership

 An organization's senior leaders need to set directions

and create a customer orientation, clear and visible
quality values, and high expectations.
 Values, directions, and expectations need to address
all stakeholders. The leaders need to ensure the
creation of strategies, systems, and methods for
achieving excellence.
 Strategies and values should help guide all activities
and decisions of the organization.
 The senior leaders must commit to the development of
the entire work force and should encourage
participation, learning, innovation, and creativity by
all employees.

3. Continues Improvement

 An organization's performance measurement needs to

focus on key results. Results should be guided by and
balanced by the interests of all stakeholders,
customers, employees, stockholders, suppliers and
partners, the public, and the community.
 To meet the sometimes conflicting and changing aims
that balance implies, organizational strategy needs to
explicitly include all stakeholder requirements.
 This action will help to ensure that actions and plans
meet differing stakeholder needs and avoid adverse
impact on any stakeholders.
4. Employee Participation & Development

 An organization's success depends increasingly upon the

skills and motivation of its work force.
 Employee success depends increasingly upon having
opportunities to learn and to practice new skills.
 Organizations need to invest in the development of the
work force through education, training, and
opportunities for continuing growth: Such opportunities
might include classroom and on-the-job training, job
rotation, and pay for demonstrated knowledge and
skills.
 On-the-job training offers a cost-effective way to
train and to better link training to work processes.
 Work force education and training programs may need to
use advanced technologies such as satellite broadcasts
and computer aided learning.
 Increasingly, training, development, and work units
need to be tailored to a more diverse work force and to
more flexible, high-performance work practices.

5. Fast Response

 Success in competitive markets increasingly demands

ever-shorter cycles for new or improved product and
service introduction.
 Also, faster and more flexible response to customers is
now a more critical requirement.
 Major improvement in response time often requires
simplification of work units and work processes.
 To accomplish such improvement, the time performance of
work processes should be among the key process
measures.

6. Design Quality and Prevention

 Organizations need to emphasize design quality-problem

and waste prevention achieved through building quality
into products and services and efficiency into
production processes.
 In general, costs of preventing problems at the design
stage are lower than costs of correcting problems that
occur "downstream."
 Design quality includes the creation of fault-tolerant
(robust) or failure-resistant processes and products.
 A major success factor in competition is the design-to-
introduction (product generation) cycle time.
 Meeting the demands of rapidly changing markets
requires that organizations carry out stage-to-stage
integration (concurrent engineering) of activities from
basic research to commercialization.
7. Long-range Outlook

 Pursuit of market leadership requires an organization

to have a strong future orientation and a willingness
to make long-term commitments to all stakeholders’
customers, employees, suppliers, stockholders, the
public, and the community.
 Planning needs to anticipate many changes, such as
customers' expectations, new opportunities,
technological developments, new customer and market
segments, evolving regulatory requirements, community
/ societal expectations, and thrusts by competitors.
 Plans, strategies, and resource allocations need to
reflect these commitments and changes.

8. Management by Fact

 Modem organizations depend upon measurement and

analysis of performance.
 Measurements must derive from the organization's
strategy and provide critical data and information
about key processes, outputs, and results.
 Data needed for measurement and improvement are of many
types, including customer, product and service
performance operations, market competitive comparisons,
supplier, employee-related, and cost and financial.
 Analysis refers to the process of obtaining larger
meaning from data to support evaluation and decision
making at various levels within the organization.

9. Partnership Development

 Organizations need to build internal and external

partnerships to better accomplish their overall goals.
 Internal partnerships might include labor-management
cooperation, such as agreements with unions.
 Agreements might entail employee development, cross
training, or new work organizations, such as high
performance work teams.
 External partnerships include those with customers,
suppliers, and education organizations.
 An increasingly important kind of external partnership
is the strategic partnership or alliance.
 Such partnerships might offer an organization entry
into new markets or a basis for new products or
services.

10. Corporate Responsibility and Citizenship

  An organization's leadership needs to stress its
responsibility to the public and practice good
citizenship.
 This responsibility refers to basic expectations of the
organization’s business ethics and protection of public
health, safety, and the environment.
 Health, safety, and the environment include the
organization's operations as well as the life cycles of
products and services.
 Organizations need to emphasize resource conservation
and waste reduction at their source.
 Planning should anticipate adverse impacts from
production, distribution, transportation, use, and
disposal of products.

Total Quality Management Statements

 In addition to the core values and concepts, the

quality statements include the vision statement,
mission statement, and quality policy statement.
 Once developed, they are only occasionally reviewed and
updated.
 They are part of the strategic planning process, which
includes goals and objectives.

Vision Statement

The vision statement is a declaration of what an

organization should look like five to ten years in the
future. It is a realistic picture of what it wants to become
and what is possible.

Mission Statement

 The mission statement answers the fol1owing questions:

who we are, who are the customers, what we do, and how
we do it.
 This statement is usually one paragraph or less in
length, is easy to understand, and describes the
function of the organization.
 It provides a clear statement of purpose for employees,
customers, and suppliers.

Quality Policy Statement

 The quality policy is a guide for everyone in the

organization as to how they should provide products and
service to the customers.
 It should be written by the CEO with feedback from the
work force and be approved by the quality council.

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.
 A quality policy is a requirement of ISO/QS 9000.

Strategic Planning

 Many organizations are finding that strategic quality

plans and business plans are inseparable.
 The time horizon for strategic planning is three to ten
years and short-term planning is one year (annual) or
less. Both types of planning require goals and
objectives.

Goals and Objectives

 Goals and objectives have basically the same meaning.

 We will differentiate between the two by using goals
for long-term and objectives for short-term planning.
 The goal is to win the war; the objective is to capture
the bridge.

Seven Steps to Strategic Planning

1. Customer Needs.

2. Customer Positioning.

3. Predict the Future.

4. Gap Analysis.

5. Closing the Gap.

6. Alignment.

7. Implementation

Characteristics of Effective Leaders

 They give priority attention to external and internal

customers and their needs. Leaders place themselves in
the customers' shoes and service their needs from that
perspective.
 They empower, rather than control, subordinates.
Leaders have trust and confidence in the performance of
their subordinates. They provide the resources,
training and work environment to help subordinates do
their jobs.
 They emphasize improvement rather than maintenance.
Leaders use the phrase "If it isn't perfect, improve
it" rather than "If it isn't broke, don't fix it."
 They emphasize prevention. "An ounce of prevention is
worth a pound of cure" is certainly true.
 They encourage collaboration rather than competition.
When functional areas, departments, or work groups are
in competition, they may find subtle ways of working
against each other or withholding information.
 They train and coach, rather than direct and supervise.
Leaders know that the development of the human resource
is a necessity.
 They learn from problems. When a problem exists, it is
treated as an opportunity rather than something to be
minimized or covered up.
 They continually try to improve communications. Leaders
continually disseminate information about the TQM
effort. They make it evident that TQM is not just a
slogan.
 They continually demonstrate their commitment to
quality. Leaders walk their talk-their actions, rather
than their words, communicate their level of
commitment.
 They choose suppliers on the basis of quality, not
price. Suppliers are encouraged to participate on
project teams and become involved.
 They establish organizational systems to support the
quality effort. At the senior management level a
quality council is provided, and at the first-line
supervisor level
 They encourage and recognize team effort. They
encourage, provide recognition, and reward individuals
and teams.