MMZG 522 Total Quality

Management
Rajiv Gupta
BITS Pilani
Live Lecture 2
 Recitation 2
• Module 1
– Personal Quality Checklist
• Module 2
– Topics Covered in Prerecorded Lectures 1 and 2
• Module 3
– Discussion on Prerecorded Lecture 1
• Module 4
– Discussion on Prerecorded Lecture 2
• Module 5
– Brief Summary of Prerecorded Lecture 3
• Module 6
– Brief Summary of Prerecorded Lecture 4
• Module 7
– Discussion Questions for next recitation class

2
 Recitation 2
• Begin Module 1
– Personal Quality Checklist

3
 Personal Quality Checklist
• I introduced you to the concept of a personal quality checklist
in the last class.
• The checklist is a list of personal attributes that you want to
improve upon.
• The idea is to select a mixture of work related as well as
purely personal attributes because even the purely personal
attributes have an impact on your professional performance.
• The attributes should be selected so that their conformance
or non-conformance can be observed unambiguously.
• For example, if the attribute is being on time for meetings,
then even if you are late by a second, it is counted as non-
conformance
 Personal Quality Checklist
• However, if the attribute is eating healthier, then the question
needs to be asked, what constitutes healthier? It is ambiguous
as stated.
• Some examples of my personal checklist attributes are:
– Replying to emails within 2 days of receipt
– Being in time for class
– Return phone calls that I wish to return within a day unless traveling.
Then within a day of returning to Delhi.
– Maintain weight under 65 kg.
– Walk at least 5 days in a week
– Not add salt at the table
– Not raise my voice in a discussion
– Not interrupt someone when he/she is talking. Hear the person out.
 Personal Quality Checklist
• Some common mistakes made by people
– Attributes do not lend themselves to be unambiguously tracked.
– The frequency of occurrence is too low, i.e., monthly or more
infrequent
– Not a mix of work related and personal attributes
• How did you arrive at your checklist?
– Were these attribute important to you?
– Have you been struggling with these issues?
– Did you get inputs from your customers?
 Tally Sheet
Attribute Number of occurrences
 Recitation 2
• End of module 1

8
 Recitation 2
• Begin Module 2
– Topics Covered in Prerecorded Lectures 1 and 2

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 Prerecorded Lecture 1
• The evolution of Quality over the last 50 years.
• Quality has gone from conformance to
specifications to meeting customer
expectations, both now, and in the future
• In today’s business climate, it is not sufficient
to weed out bad parts from the good. We
need to prevent the production of bad parts.
 Prerecorded Lecture 1
• David Garvin has proposed 8 attributes of quality.
They are:
– Performance
– Features
– Conformance
– Durability
– Reliability
– Service
– Response
– Esthetics
 Prerecorded Lecture 1
• Total Quality Management means that the entire
organization is involved in the creation of value
for the customer.
• However, it is the leadership of the organization
that needs to assume responsibility for quality.
They need to demonstrate this responsibility.
• There are several quality gurus who have
contributed to the subject of quality, including
Juran, Deming, Crosby, Taguchi, Feigenbaum,
Kano, etc.
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 Prerecorded Lecture 2
• Leadership requirements for implementing
TQM.
• Deming’s Chain Reaction.
• The Deming Flow Diagram dramatically
showing the interrelationships among the
suppliers, the manufacturing organization and
its customers in a deceptively simple manner.
 Prerecorded Lecture 2
• Views of Stephen Covey and Brian Joiner on
leadership and management relating to
quality.
• Qualities of a good leader including vision,
passion, courage, ethical behavior, being a role
model, and a strong customer focus.
• Vision and Vision Statements
 Recitation 2
• End of module 2

15
 Recitation 2
• Begin Module 3
– Discussion Questions Based on Prerecorded
Lecture 1

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 Recitation 2
• Discussion questions
– How does your organization describe quality?
– How is quality measured in your organization?
– Who is responsible for quality in your
organization?
– What role do you play in your organization’s ability
to maintain a high level of quality?
– Is there a fundamental difference between quality
and “Total Quality?”
 Recitation 2
• Discussion questions
– Do you follow a specific quality guru? Who?
 Recitation 2
• End of module 3

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 Recitation 2
• Begin Module 4
– Discussion Questions on Prerecorded lecture 2

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 Recitation 2
• Discussion questions
– Have you seen the leadership in your organization
assume responsibility for quality? How?
– Do you believe that having a vision is important in
an organization? Do you know and/or believe fully
in your organization’s vision?
– Why is being a role model important for a leader?
– Deming’s Chain Reaction goes contrary to what
we normally think of. Do you agree with the chain
reaction? Why?
 Recitation 2
• End of module 4

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 Recitation 2
• Begin Module 5
– Brief Summary of Prerecorded Lecture 3

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 Prerecorded Lecture 3
• This lecture is about Deming and his approach to
overall management which is about a very systemic
approach to quality and value creation.
• Deming is known for two main topics that people
discuss in regard to his contribution. One is his
System of Profound Knowledge and the other are his
14 Points.
• The System of Profound Knowledge were his last
contribution before he passed away in 1994.
 Prerecorded Lecture 3
• The System of Profound Knowledge (SOPK) consists
of 4 elements, Appreciation of a System, Knowledge
of Variation, Theory of Knowledge and Psychology.
• Appreciation of a System advocates that we view
businesses and other activities as systems. Otherwise
our attempts to understand and improve activities
will not result in overall improvement.
• Knowledge about Variation deals with the difference
between common cause and special cause variation
and the need to understand which is inherent to the
current system configuration.
 Prerecorded Lecture 3
• Any attempt to meddle with random variations due to
common causes may result in making the variations
worse.
• Theory of Knowledge focuses on the PDSA cycle as the
only viable approach to gain knowledge about a system.
We need to have a theory that is constantly testable.
• Psychology talks about the need to understand that each
individual is born with an intrinsic motivation to learn.
But our systems of rewards and punishments destroy this
motivation and take away the joy of learning.
 Prerecorded Lecture 3
• Deming’s 14 Points are embedded in the SOPK.
• The 14 Points discuss in detail the things that a good
manager must do in order to create a great
organization.
• The 14 Points are general in nature and do not get
specific in terms of how each of them must be
achieved. These are left to the judgement of the
managers.
 Recitation 2
• End of module 5

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 Recitation 2
• Begin Module 6
– Brief Summary of Prerecorded Lecture 4

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 Prerecorded Lecture 4
• Lecture 4 begins with SIPOC model of a system. The
role of the organization’s purpose is discussed.
• It is shown that it is essential to ensure the alignment
of the activities of everyone in the organization.
Otherwise there will be a lot of wasted time and
effort.
• Next we get into a discussion of the need to be
customer-centric and what that means to an
organization. An inverted organizational pyramid
with the CEO at the bottom symbolizes such thinking.
 Prerecorded Lecture 4
• Being customer focussed goes beyond sloganeering,
something a lot of companies tend to do.
• In order to truly focus on the customer, a company
first needs to understand the true customer needs
and then see how best they can meet those needs.
• Several companies behave in a product-out fashion
as opposed to a customer-in manner. A product-out
orientation is exhibited by an organization that
considers its task to put out products that it feels a
customer should buy as opposed to first
understanding what the customer needs.
 Prerecorded Lecture 4
• Several companies that have adopted the product-
out approach have not survived for too long.
• Customers are both internal and external.
• Even among the external customers there is a
difference between a customer who pays for the
product, someone who uses the product, and
someone who influences the purchase.
 Recitation 2
• End of module 5

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 Recitation 2
• Begin Module 7
– Discussion Questions for Next Recitation

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 Next Recitation
• Discussion questions
– Suggest an example where systems thinking can help
improve how we address problems
– What is the relevance of the theory of learning in
running organizations?
– Why do companies not seem to understand the
importance of the theory of variation?
– Have you observed the way in which any organization
curbs the joy of learning and discovery? Give some
examples of intrinsic and extrinsic motivation.
 Next Recitation
• Discussion questions
– Take any point in Deming’s 14 points and suggest
an example illustrating its relevance and use.
 Next Recitation
• Discussion questions
– What is the purpose of your organization? How
does the leadership of the organization work to
convey the purpose to the employees? How well
is your organization aligned to its purpose?
– What prevents companies from meeting its
customer’s expectations? How well does your
organization meet its customer expectations?
– Do you know who is your customer? If so, how do
you ensure that you meet his/her requirements?
 Next Recitation
• Discussion questions
– How does your company keep track of customer
satisfaction? What are the shortcomings in that
approach?
– Think of any organization with multiple customers.
How would they be able to satisfy conflicting needs?
– Consider the total experience of a person visiting a
bank and describe the components of that total
experience.
Questions?