UNIT II - TQM PRINCIPLES

LEADERSHIP

Fig. 1 Types of Quality leader

 "Leadership is lifting of organisation’s visions to higher sights, the raising of
organisation’s performance to a higher standard, the building of organisation beyond its
normal limitations."
CHARACTERISTICS OR BEHAVIOURS OF QUALITY LEADERS
1. The customers first:
 Clarity in thought
 Primary importance to both internal and external customer needs
 Leaders actively listen on customer opinion on the value of product / service
2. Value people:
 Leaders have trust and confidence in their performance of their subordinates
 They monitor , appraise and recognize subordinate performance
3. Build supplier partnership:
 Leaders clarify quality to suppliers, audit their capabilities, give feedback, discuss
improvement and support them where need
4. Empower people:
 Leaders train and coach rather than direct supervising
5. Demonstrate involvement/commitment:
 Continually demonstrate commitment to quality achievement
6. Strive for excellence:
 Leader emphasizes continuous improvement rather than maintenance.
7. Curiosity
 Willingness to learn quality policy to all involved
8. Improve communication:
 Leader continually improve communication establish channels of communication
which are reliable and accessible in every one organisation
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9. Promote teamwork:
 Leader promotes multidisciplinary teamwork, create involvement & active
participation of everyone.
10. Benchmark continuously:
 Continuously do benchmarking and create new learning effects through
innovation
11. Establish system: Quality:
 Quality leaders establish organisational systems to support quality effort
12. Encourage collaboration:
 Leaders encourage collaboration rather than competition.

ROLE OF TQM LEADERS

 To study and investigate the TQM concepts and issues.

 To set clear quality policies and provide challenging tasks.
 To establish 'priority of quality' and 'customer satisfaction' as the basic policy and
determine the long term goals.
 To bring a cultural charge required for the TQM effort.
 To establish the TQM vision for the future and communicate to all involved.
 To become coaches and cheer leaders for encouraging and supporting the managers
during the transition phase of the transformation change.
 To stimulate employees to be involved.
 To teach employees to realise that the company's interest and their interest are geared into
one another.
 To uphold norms and values, and let it be known.
 To attend TQM training programmes.
 To create coordination and harmony among and within departments.
 To monitor whether quality improvement programs are conducted as planned.

Fig. 2 Qualities of a leader

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STRATEGIC QUALITY PLANNING
 Strategic quality plans and business plans are inseparable.
 No organization can survive for long without placing a core emphasis on quality.
 The time horizon for strategic planning is three to ten years and short term planning is
one year.
 Both long-term and short-term require goals and objectives.
 Goals and objectives are derived from organizational Mission/Vision statement.
 Quality should be used as key Mission statement and strategic option.

QUALITY STATEMENT
 Quality Statements are established by the Quality council to provide overall direction for
achieving the total quality culture.
 Three elements of quality statements are:
 1. Vision Statement
 2. Mission Statement, and
 3. Quality policy statement
 Effective leader communicate the values of the organisation to their employees by
translating the vision and mission into day –to – day activities.

VISION STATEMENT
A well-written vision statement, regardless of the type of organisation, has the following
characteristics:
 Is easily understood by all stakeholders
 Is briefly stated, yet clear and comprehensive in meaning
 Is challenging, yet attainable.
 Is lofty, yet tangible
 Is capable of stirring excitement for all stakeholders
 Is capable of creating unity of purpose among all stakeholders
 Is not concerned with numbers
 Sets the tone for employees.

MISSION STATEMENT
 The mission statement, is usually one paragraph, describes the function of the
organization. It provides a clear statement of purpose for employees, customers, and
suppliers.

 The mission statement answers the following questions: who we are? Who are the
customers? What we do?; and how we do it?

 A well conveyed mission statement defines the fundamental, unique purpose that
sets a company apart from other firms of its type and identifies the scope of the
company’s operations in terms of products offered and markets served.
Together, a vision and mission statements provide a common agreed-upon direction for
the entire organization. The direction can be used as a basis for daily decision making.

STRATEGIC PLANNING
Strategic Planning can be defined as the process of deciding on objectives of the organization, on
changes on these objective, on the resource used to attain these objectives and on the policies
that are to govern the acquisition, use and disposition of these resources
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  It sets the long term direction of the organisation in which it wants to proceed in
future.

Fig. 3 Strategic Planning Cycle

Types of Strategic Planning

S.No Traditional strategic planning Strategic quality planning

1 Focus is not defined Focus is on customer
2 Focus is on products Focus is on process
Leader – lack of understanding –
3 Leader determine critical to success
critical to success

4 Goals and objectives result oriented Goals and objectives process & result oriented

5 No alignment exist Alignment exist

Improvement activities – within Improvement activities – both within and
6
functional areas across functional area

EMPLOYEE INVOVLEMENT
The heart of the TQM is the concept of intrinsic motivation involvement in decision
making. Total involvement from every individual at all level is very must.
Why involvement?
 Market is changing
 Competition is emerging at global level.
 Every employee is regarded as a unique human being and each employee is involved in
helping the organisation meet its goals.
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  By involving employees, empowering and bringing them into decision making
process the opportunity is provided for continual process improvement
 Their ideas, expert knowledge potential, experience and creative thoughts of employees,
promote quality and productivity.

Fig. 4 Types of Encouragements

EMPLOYEE MOTIVATION
 Motivation means a process of stimulating people to accomplish desired goals.
 It is lead to success of organisation, however it is difficult to understand because
human nature is quite complex.
 Important function of motivation
1. Job performance(ability)
2. Productivity (skills)
3. Job satisfaction
4. Employee extension

MOTIVATION
 Motivation means a process of stimulating people to accomplish desired goals.
 It is lead to success of organisation, however it is difficult to understand because
human nature is quite complex.
 Important function of motivation
1. Job performance(ability)
2. Productivity (skills)
3. Job satisfaction
4. Employee extension

EMPOWERMENT
 Involving people in decision related to their work is essential for good management
 Empowerment refers to a process where by an individual’s belief in his or her self-
efficiency is enhanced.
 Empowered should not be confused with delegation or job enrichment

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TEAM AND TEAM WORK
 Team are group of people working towards the common goals
 Team work is the cumulative sum of action of the team, during which each person in
the team subdues one's individual desires and opinions, to satisfy the objectives or
goals of the group.

Fig 5. Team Work

WHY AND HOW - TEAM WORK?
1. Many procedures are so complicated that one member cannot have through knowledge
on entire process
2. According to synergy principle the whole is greater than the sum of its constituents
3. The team members develop mutual respect and appreciation with each other which
enables them to do jobs better – team spirit.

STAGES OF TEAM DEVELOPMENT

Forming stage (start up)
 members go through a process of defining their collective task, agreeing on individual
roles and responsibilities
Stroming (conflict)
 Deciding on the plan of action
 There is frustration and disagreement on issues of leadership, power, control and
influence.
Norming (Teamwork)
 Stage things begin to settle down and stabilize conflict and issues are resolved
 Disagreements are negotiated
 Strong bonds from within the group
Performing (achievement)
 This is the maturing stage. Members have strong loyalty to the team and to one another
 This performance is high
 Members work together in constructive ways to achieve common goals
Transforming (change)
 In this last change the team may add or lose members. It may have a new mission or
break up entirely

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RECOGNITION AND REWARD

Recognition
Recognition is a process whereby management shows acknowledgement of an
employee's outstanding performance,
 Recognition is a form of employee positive motivation. Recognition of employees
is highly essential as people find themselves in a accepted and winning role.
To sustain employee's interest and to propel them towards continuous improvement, it is
essential to recognise the people. This acknowledgement may be of financial, psychological or
both in nature.

Reward
Reward is a tangible one, such as increased salaries, commissions, cash bonus, gain
sharing, etc., to promote desirable behaviour.

Why should we recognize the Employees?

The employees effort towards the improvement should be recognised for many reasons.
- Recognition is essential to: improve employees morale.
- show the company's appreciation for better performance.
- create satisfied workplace.
- create highly motivated workplace.
- reinforce' behavioural patterns.
- stimulate creative efforts.
Table 1 Types of rewards
Intrinsic Rewards Extrinsic Rewards
Celebrations to acknowledge achievement of Profit sharing
quality improvement goals
Formal suggestion system available for individuals Gain sharing
to make quality improvement suggestions
Developmental based performance appraisals. Employee security
Quality based promotions. Compensation time

PERFORMANCE APPRAISAL

 The purpose of the performance appraisals is to let employees know how they evaluate
and provide a basis for promotions, salary increment, and counselling.
 The appraisal should bring out strengths and weaknesses, as well as how performance can
be improved.
 Performance appraisal is a systematic and objective assessment or evaluation of
performance and contribution of an individual.
 It is a systematic and objective way of judging the relative worth of an employee in
performing his task.
 It is the systematic, periodic and an impartial rating of an employees excellence in
matters pertaining to his present job and his potential for a better job.

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Need for Performance Appraisal
The purpose of performance appraisal are:
 To identify employees for salary revision, promotion, transfer, demotion.
 To take an organisational of inventory people, skills and potential for comparing it with
its needs.
 To determine training and development needs of the employees.
 To motivate employees by providing feedback on their performance levels.
 To know personal strengths and weaknesses of different individuals.
 To establish a basis for research and reference for personnel decisions in future.
 To guide the individual to plan job and personal objectives and to help him in career
planning.
 To validate the selection procedures.
 To improve communication in an organisation.

CONTINUATION PROCESS IMPROVEMENT

We must strive to achieve perfection by continuously improving the business and Production
process. We continuously improve by

Fig. 7 Lamp example for Continuous Improvement

 Viewing all work as a process, it is associated with production or business activities,
 Making all our processes effective, efficient and adaptable,
 maintaining constructive dissatisfaction with the present level of performance,
 Eliminating waste and rework wherever it occurs.
 Eliminating non conformities in all phases of every one’s work, even if the increment of
 improvement is small.
 Using bench marking to improve competitive advantage
 Innovating to achieve break thoroughly
 Holding gains so there is no regression
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  In corporating lessons learned into future activities.
 Using technical tools such as statistical process control (SPC), experimented design, bench
marking, quality function deployment (QFD). etc.
Continuous process improvement is designed to utilize the resource of the organization to
achieve a quality-driven culture.

KAIZEN
'Kai' and 'zen' in Japanese, mean change for good. It indicates the philosophy that defines
management's role in continuously encouraging and implementing small improvements
involving every person.
It is the principle of continual improvement whereby the process is made more effective,
efficient, controllable and adaptable. Improvements are achieved with
little expense, and with less sophisticated equipment or techniques. It concentrates on
simplification by splitting the complex processes into their sub-processes and then
improving upon them.

The PDSA Cycle

The basic Plan-Do-Study-Act (PDSA) cycle was first developed by Shewhart and then
modified by Deming.

The four steps in the cycle are exactly as stated.

1. First, plan carefully what is to be done?
2. Next, carryout the plan (do it)?
3. Third, study the results. Did the plan work as intended or were the results
different ?
4. finally, act on the results by identifying what worked as planned and what didn’t?
Using the knowledge learned, develop an improved plan and repeat the cycle.

Fig. 8 PDSA Cycle

5S PRINCIPLE
 SEIRI – Organisation/Sort out
 SEITON – Orderliness/Systemize
 SEISO – The Cleaning/Shining
 SEIKETSU – STANDARDIZE
 SHITSUKE - Sustain/Discipline
Seiri
Decide what you need
Remove unnecessary clutter
All tools, gauges, materials, classified and then stored
Remove items which are broken, unusable or only occasionally used
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Seiton
Once you have eliminated all the unneeded items
Now turn to the left over items
Seiso
Create a spotless workplace
Identify and eliminate causes of dirt and grime – remove the need to clean
Sweep, dust, polish and paint
Seiketsu
Generate a maintenance system for the first three
Develop procedures, schedules, practices
Continue to assess the use and disposal of items
Regularly audit using checklists and measures of housekeeping
Real challenge is to keep it clean
Shitsuke
Means inoculate courtesy & good habits
Driving force behind all 5S
Deming’s point number 1: Constancy of purpose
Make it a way of life
Part of health and safety
Involve the whole workforce
Develop and keep good habits

Advantages of 5S
Health and Safety is ensured
Machine maintenance
Quality
Productivity
Lean Manufacturing
Time saving
Quick retrieval
Accidents & mistakes minimized
Increases space
Creates workplace ownership

PRINCIPLES OF CUSTOMER/SUPPLIER RELATIONS

1. Both the customer and the supplier are fully responsible for the control of the quality
2. Both the customer and the supplier should be independent of each other and respect each
other’s independence.
3. The customer is responsible for providing the supplier with clear and sufficient
requirements so that the supplier can know exactly what to produce.
4. Both the customer and the supplier should enter a contract with respect to quality,
quantity, price, delivery method, and terms of payments.
5. The supplier is responsible for providing the quality that will satisfy the customer and
submitting necessary related with customer’s needs.
6. Both the customer and the supplier should decide the method to evaluate the quality of
the product or service to satisfaction of both parties
7. Both the customer and the supplier should establish a settlement method in the contract.
8. Both the customer and the supplier should continually exchange information, sometimes
using multifunctional teams, in order to improve the product or service quality.
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 9. Both the customer and the supplier should perform business activities such as
procurement, production and inventory planning, and etc.
10. When dealing with business transactions, both the customer and the supplier should
always have the best interest of the end user in mind.

SUPPLIER PARTNERSHIP

An organization (or customer) purchases its requirements, raw materials, components, and
services, from supplier.
Better supplier’s quality  Better product’s quality
A partnership between customer and supplier is one of the keys to obtaining high quality
products and services. Customers and suppliers have the same goal –to satisfy the end user. They
must work together as partners to maximize the return on investment because they have limited
resources.
PARTNERING
Partnering is a long-term commitment between two or more organizations for the purpose of
achieving specific business goals & objectives.

 The relationship is based upon trust, dedication to common goals and objectives.
 Benefits include:
o Improved Quality,
o Increased efficiency,
o Lower cost,
o Increased opportunity for innovation, &
o Continuous improvement of products and services

 The three key elements of partnering are:

o Long-term commitment.
o Trust.
o Shared vision.

SUPPLIER RATING

Supplier rating system is based on quality, delivery and other added services.
The objectives of a rating system are:
o To obtain an overall rating of supplier performance.
o To ensure communication with suppliers in the areas of quality, service, delivery
and other desired measures.
o To provide supplier with a detailed and factual record of problems for corrective
action.
o To enhance the relationship between the customer and the supplier.

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