Total Quality Management

MMZG 522/MBAZG522/QMZG532
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

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 Recitation 2
• Begin Module 1
– Personal Quality Checklist

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 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.
• So what is a personal attribute? It is a habit or characteristic about
you. Example: you like to watch television, or you love sweets.
• The idea is that you want to make changes to some habits or
characteristics. This is what a lot of people do in terms of New
Year’s resolutions.
• 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.

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 Personal Quality Checklist
• How to choose your attributes
– You should have sufficient number of “defects “ that can be measured
per week etc. Do not choose attributes with a monthly frequency.
– The attributes should be selected so that their conformance or non-
conformance can be observed unambiguously. For example it is not
enough to say that you want to eat healthy. You need to specify what
constitutes eating healthy vs. not healthy. So you may say something
like, “I will restrict my junk food to _____ per week, etc.
– Ideally the number of attributes should be around 5-10
– There should be a balance between work related, and non work
related attributes.
– You should have time saving attributes to balance against those that
will require more time.

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Personal Quality Checklist Asssignment
• The Assignment in brief:
– You will select personal quality attributes for
yourself.
– You will monitor these for the next several weeks.
– You will use quality tools to improve upon some
attributes.
– You will submit one progress report by the end of
February and a final report by the end of the
semester. The exact dates for the submission of
the reports will be announced on Taxila.

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 Personal Quality Checklist
• 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.

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 Personal Quality Checklist
• My personal quality 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 between 63 and 65 kg. Modified target
– Walk at least 5 days in a week at least 4 kms each day
– 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.

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 Personal Quality Checklist
• Some common mistakes made by people
– Attributes not clear. Ambiguous. Need better definition.
– The frequency of occurrence is too low, i.e., monthly or more
infrequent
– Not a mix of work related and personal attributes
– Attributes not challenging, not enough non-conformances.
– Not enough time saving attributes to offset those requiring more time
• How did you arrive at your checklist?
– Were these attribute important to you?
– Have you been struggling with these issues?
– Who are your customers? Did you get inputs from your customers?

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 Personal Quality Checklist
• Once you have selected your attributes, you
will track the number of defects (non-
conformances) for each attribute as they
happen in a tally sheet.
• Then for each week, you will add the total
number of defects summed over all attributes
and plot the total defects in a run chart.

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 Tally Sheet
Attribute Number of occurrences

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Run Chart for Total Defects
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10

8
Defects

Series1
6

0
0 1 2 3
Weeks

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 Recitation 2
• End of module 1

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

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 Prerecorded Lecture 1
• Prerecorded lecture 1 starts with what we understand
by the term quality. It also covers who determines
quality, who is responsible for quality, and how quality
has evolved over the last several decades.
• Quality has gone from conformance to specifications,
to meeting, and exceeding, 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.

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 Prerecorded Lecture 1
• David Garvin has proposed 8 attributes of quality.
They are:
– Performance
– Features
– Conformance
– Durability
– Reliability
– Service
– Response
– Esthetics
So which attributes would you focus on?

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 Prerecorded Lecture 1
• The lecture also brings out the difference
between quality that was assigned to a Quality
Department and Total Quality Management,
where 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.
• What is the difference between involvement and
responsibility?
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 Prerecorded Lecture 1
• There are several quality gurus who have
contributed to the subject of quality, including
Juran, Deming, Crosby, Taguchi, Feigenbaum,
Kano, etc.
• Each person has contributed to the field of
quality something different.
• Juran and Deming are broader in their
perspective and view quality as a way to
manage business.

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 Prerecorded Lecture 2
• Recorded lecture 2 discusses the role of leadership in the
successful implementation of TQM.
• Deming’s Chain Reaction shows how the improvement in
quality results in a reduction in cost, which leads to
increased business. Unless management is convinced of
this, the emphasis on quality will be lacking in the
organization.
• The Deming Flow Diagram dramatically shows the
interrelationships among the suppliers, the manufacturing
organization and its customers in a deceptively simple
manner. It identifies the feedback loops necessary to
continuously monitor and improve quality.
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 The Deming Chain Reaction

Costs decrease because of

less rework, fewer mistakes,
Improve Productivity
fewer delays, snags, better
Quality improves
use of machine time and
materials

Capture the market

Provide jobs Stay in
with better quality
and more jobs business
and lower prices

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 THE DEMING FLOW DIAGRAM

Stage 0
Generation of ideas

Design and
Suppliers of materials Redesign Consumer feedback
and equipment
Receipt and test
Consumers
of materials Production, Assembly, Inspection

Tests of processes, machines,

methods, costs

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 Prerecorded Lecture 2
• Views of Stephen Covey and Brian Joiner on
leadership and management relating to
quality are also discussed. For example, Covey
discusses how to prioritize tasks based on two
dimensions, urgency and importance.
• The lecture also discusses the responsibilities
of the top leadership, middle management,
and of the Quality Council.

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 Prerecorded Lecture 2
• Qualities of a good leader are discussed,
including vision, passion, courage, ethical
behavior, being a role model, and a strong
customer focus. How do you rate corporate
CEOs based on these measures?
• People are usually not clear what is meant by
the term Vision. What do you understand by
the term? What purpose does it serve? Why is
it important?

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 Prerecorded Lecture 2
• To fully appreciate what is the importance as well
as the complexity of a meaningful Vision and
Mission, let us try to define the purpose of this
TQM course.
• Let us ask ourselves the question why are we
here? What are we trying to achieve?
• Let us try to fashion a mission/purpose statement
that we can identify with and then determine
what it means in terms of expectations, behaviors
and responsibilities.
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Course Mission/Purpose

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 Recitation 2
• End of module 2

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

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 Recitation 2
• Discussion questions
– What role does quality play in your organization?
How is it reflected in how the company operates?
– 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?
– Do you follow a specific quality guru? Who?

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 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
– Which CEO(s) would you rate as having the
attributes discussed in class? Why?
– Which company would you say have a strong
quality focus? What is the evidence?
– What is the role of vision to an organization? Do
you know and/or believe fully in your
organization’s vision?
– Comment on Deming’s Chain Reaction. Do you
agree with the chain reaction? Why?

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 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 did not consider quality from a limited conformance
to specifications perspective. By the same token, he never
liked the term Total Quality Management, which has
sometimes been attributed to him. Why did he not like the
term TQM?
• Deming is known for a number of contributions including the
PDSA cycle, focus on common and special cause variation, and
his 14 Points and the System of Profound Knowledge (SOPK)
• The System of Profound Knowledge was his last contribution
published in “The New Economics” after he passed away in
1994.

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 Prerecorded Lecture 3
• The 14 Points are guidelines to leaders of organizations
regarding what areas require their attention.
• 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 judgment of the managers.
• The 14 Points are embedded in the SOPK.
• The System of Profound Knowledge (SOPK) consists of 4
elements, Appreciation of a System, Knowledge of
Variation, Theory of Knowledge and Psychology.

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 Prerecorded Lecture 3
• 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.
• 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.

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 Prerecorded Lecture 3
• Psychology is 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.
• Deming’s fame came late in life at the age of 80
when the US industry was looking for ways to
counter the Japanese onslaught and they realized
that the person who taught the Japanese was an
American who had been ignored at home.
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 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 essential to ensure the alignment of the activities of
everyone in the organization. Otherwise there will be a
lot of wasted time and effort. That does not mean
complete consensus. But we must agree on the goals and
the path to achieve them. Why is there misalignment?
• 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.
• The inverted pyramid is something that goes contrary to
common practice. Why is it so difficult?

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 Prerecorded Lecture 4
• The front line workers are the ones who add real value
for the customers and should be supported by their
supervisors and they by their managers and so on. Why is
this important?
• 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.

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 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.
• Examples would be minor patients who do not pay
for their treatment. Doctors and others influence the
choice of treatment as well as hospitals.

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 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.

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 Next Recitation
• Discussion questions
– Take any point in Deming’s 14 points and suggest
an example illustrating its relevance and use.

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 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?

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 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.

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Questions?

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