Management Operations in Business Management

MOHAMED ANFAS - BM33
MANAGEMENT OPERATIONS 1ST SEMESTER
ACKNOWLEDGEMENT
In the name of “ALLAH”, the most beneficent and merciful who gave me
strength and knowledge to complete this assignment. This assignment is part
of 1st semester in HND, “MANAGEMENT OPERATIONS”. This has proved to be
a great experience.
I would like to express my grateful to my subject lecturer Mr. Chrishain, who

gave me this opportunity to fulfill this assignment. He gave me moral support
and guided me in different matters regarding the topics. I thank him for his
overall support.
I also thankful to everyone who supported me to complete this assignment

effectively and moreover on time. They gave me many helpful comments
which helped me a lot in preparing this assignment. ….
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CONTENTS
LO 1 & LO 2 ............................................................................................................................................. 5
1. INTRODUCTION OF THE COMPANY ............................................................................................... 5
1.1 THE MAJOR SUBSIDIARY COMPANIES RUN UNDER JKH ........................................................... 6
1.2 MANAGEMENT RUN UNDER JOHN KEELLS HOLDINGS ............................................................. 6
2. THE MANAGEMENT AND LEADERSHIP .......................................................................................... 8
MANAGEMENT ................................................................................................................................... 8
LEADERSHIP ........................................................................................................................................ 8
THE DIFFERENCE BETWEEN MANGER AND LEADER .......................................................................... 9
3. MANAGEMENT AND LEADERSHIP THEORIES ................................................................................ 9
MANAGEMENT THEORIES .................................................................................................................. 9
➢ HENRI FAYOL’S MANAGEMENT THEORY ................................................................................... 9
➢ HAWTHORNE EFFECT THEORY ................................................................................................. 11
LEADERSHIP THEORIES ..................................................................................................................... 12
▪ DEMOCRATIC LEADERSHIP ....................................................................................................... 12
❖ CHARACTERISTICS OF DEMOCRATIC LEADERSHIP .............................................................. 12
▪ CONTINGENCY LEADERSHIP ..................................................................................................... 13
• FIELDER’S CONTINGENCY THEORY ....................................................................................... 13
4. THE MANAGEMENT AND LEADERSHIP MAINTAINED IN JOHN KEELLS HOLDINGS .................... 14
5. RECCOMMENDATIONS FOR JKH .................................................................................................. 16
6. CONCLUSION ................................................................................................................................ 16
LO 1 & LO 2 ....................................................................................................................................... 16
LO 3 & LO 4 ........................................................................................................................................... 17
1. TOTAL QUALITY MANAGEMENT .................................................................................................. 17
▪ DEFINITIONS ............................................................................................................................. 17
▪ TQM AND ITS PRINCIPLES ........................................................................................................ 17
▪ EXAMPLES OF TOTAL QUALITY MANAGEMENT ...................................................................... 19
▪ BENEFITS OF TOTAL QUALITY MANAGEMENT ........................................................................ 19
o CUSTOMERS.......................................................................................................................... 19
o ORGANIZATION .................................................................................................................... 19
▪ TQM ADVANTAGES AND DISADVANTAGES ............................................................................ 20
2. KEY TOOL OF TOTAL QUALITY MANAGEMENT ........................................................................... 20
▪ KAIZEN ...................................................................................................................................... 20
2
A. PDCA OF KAIZEN ....................................................................................................................... 21

➢ IF ABC ADOPTS PDCA ........................................................................................................... 22
B. 5S OF KAIZEN ............................................................................................................................ 22
➢ IF ABC ADOPTS 5S................................................................................................................. 23
C. QUALITY CIRCLE ........................................................................................................................ 24
➢ IF ABC ADOPTS QUALITY CIRCLES ........................................................................................ 25
D. 5 WHY ....................................................................................................................................... 25
➢ IF ABC ADOPTS 5WHY .......................................................................................................... 26
▪ SIX SIGMA ................................................................................................................................. 26
➢ ABC ADOPTS SIX SIGMA ....................................................................................................... 27
▪ FISH BONE DIAGRAM ............................................................................................................... 28
3. QUALITY COSTS AND ADOPTING TQM ........................................................................................ 29
A. CONFORMANCE ........................................................................................................................ 30
1. PREVENTION ......................................................................................................................... 30
2. APPRAISAL ............................................................................................................................ 30
B. NON-CONFORMANCE............................................................................................................... 30
1. INTERNAL FAILURE ............................................................................................................... 31
2. EXTERNAL FAILURE ............................................................................................................... 31
C. TQM VS QUALITY COSTS .......................................................................................................... 31
4. RECOMMENDATIONS FOR THE FUTURE IMPROVEMENTS OF ABC PVT LTD AND CONCLUSION
32
RECOMMENDATIONS ....................................................................................................................... 32
IMPLEMENTING 5S PROCESS ....................................................................................................... 33
IMPLEMENTING QUALITY CIRCLES PROCESS ............................................................................... 34
IMPLEMENTING FISH BONE DIAGRAM PROCESS ........................................................................ 35
ABC AND CONFORMANCE COST .................................................................................................. 37
CONCLUSION LO3 & LO4 .................................................................................................................. 37
REFERENCES .......................................................................................................................................... 39
3
FIGURES
Figure 1- JKH Management Structure .............................................................................................. 7
Figure 2- Managerial grid ........................................................................................................ 15
Figure 3- PDCA KAIZEN ............................................................................................................ 21
Figure 4- 5s KAIZEN ................................................................................................................. 23
Figure 5- QUALITY CIRCLES...................................................................................................... 24
Figure 6 - 5 WHY ...................................................................................................................... 25
Figure 7- DMAIC....................................................................................................................... 27
Figure 8- FISH BONE DIAGRAM ............................................................................................... 28
Figure 9- QUALITY COSTS ........................................................................................................ 29
Figure 10 - IMPLEMENTATION OF 5S ...................................................................................... 33
TABLES
Table 1- Differences between leader and manager ................................................................. 9
Table 2- Advantages and Disadvantages of Henri Fayol’s theory ......................................... 10
Table 3- Democratic leadership advantages and disadvantages .......................................... 12
Table 4- Advantages and Disadvantages of TQM .................................................................. 20
Table 5- SIGMA DEFECTS ......................................................................................................... 26
Table 6- IMPLEMENTATION OF QUALITY CIRCLES ................................................................. 34
Table 7 - IMPLEMENTATION OF FISH BONE DIAGRAM............. Error! Bookmark not defined.
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LO 1 & LO 2
TO : CEO
FROM : HR Executive
SUBJECT : Management and Leadership
DATE :
1. INTRODUCTION OF THE COMPANY
John Keells Holdings is the Sri Lanka’s Largest conglomerate which owns about 70
companies in 7 industries where as John Keells Holdings has interests in shipping and
logistics, Consumer Food, Leisure, Property Development, Retail, Financial services and
Information technology.
The owners of John Keells Holdings, Englishmen Edwin and George John, accelerated the
company since the 1870s. Then, in the 1970s, JKH eagerly joined the tourism industry,
which is now one of Sri Lanka's most important economic drivers. After that, in 1979, JKH
became a public limited company. After that JKH Obtained listing on Colombo Stock
Exchange in 1986, And by issuing Global Depository Receipts (GDRs) quoted on the
Luxembourg Stock Exchange, Became Sri Lanka’s first company to obtain a listing
overseas.
Then in 1991 JKH entered into beverages and ice cream under company of “Elephant
House”. In 1999 JKH played a role entering banking sector by establishing “Nation Trust
Bank”. And the growth of JKH kept growing and for the growth of the country JKH invested
in land mark projects which will define Sri Lanka. By investing in the first PVT port terminal
in the country name South Asia Gateway Terminals (SAGT) with USD 900 million, 4.5
million square feet, integrated mixed used complex branded as Cinnamon Life which is
largest ever private investment in Sri Lanka. JKH is a full member of the World Economic
Forum and the first Sri Lankan company to be listed abroad, having published Global
Depository Receipts on the Luxemburg Stock Exchange.
Over the 151 years of excellence (since 1870) CEO Krishan Balendra mentions that JKH
owns assets worth Rs.4396,944 billion and their yearly revenue is Rs140,043 billion (2019),
Where over 20,500 employees being employed under John keells holdings.
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1.1 THE MAJOR SUBSIDIARY COMPANIES RUN UNDER JKH
A. RETAIL = Keells Super, JKOA, Nexus Mobile.

B. FINANCIAL SERVICES = Nations Trust bank, Deloitte, Union Assurance.
C. CONSUMER FOOD = Elephant house, Fito, Keells Krest, IMORICH, Wonder range.
D. PLANTATION SERVICES = JKL, Tea small holder factories PLC.
E. LEISURE = Nature Trails, Walkers Tours, AYU, ARTRAVELE, Cinnamon Hotels and
resorts.
F. PROPERTY = John keells properties, TRI-ZEN, KZONE, The Monarch, John keells land,
The emperor, Victoria.
G. INFORMATION TECHNOLOGY = ASUS, Samsung, TOSHIBA, XYZ printing, Zhara,
HITACHI, Ui path, ZEBEX, RISO, BIXOLON, evinta, infomate.
H. TRANSPORTATION = Cinnamon air, Air taxi, DHL, Chevron, Air asia, Air Mauritius,
Logistics, mackinnons, APG, Gulf air, Royal Brunei, American airlines, Asiana airlines.
1.2 MANAGEMENT RUN UNDER JOHN KEELLS HOLDINGS
A. CEO & CHAIRMAN (KRISHAN BALENDRA) - Director of the Ceylon chamber of

commerce and Hon, Former chairman of Colombo Stock exchange
B. DEPUTY CHAIRMAN & GROUP FINANCE DIRECTOR (GIHAN COORAY) – Responsible
for the accounting, taxation, Treasury, Information technology functions and JK
research
C. NON-EXECUTIVE DIRECTOR (AMAL CABRAAL) – Chairman of Ceylon beverage
holdings PLC, Lion Brewery PLC, Former Chairman and CEO of Unilever Sri Lanka
D. NON-EXECUTIVE DIRECTOR (NIHAL FONSEKA) – Ex-Officio of DFCC bank, Currently a
member of the monetary board of Central bank
E. NON-EXECUTIVE DIRECTOR (ASHROFF OMAR) – CEO of Brandix Lanka limited
F. NON-EXECUTIVE DIRECTOR (PREMILA PERERA) – Former partner in KPMG Sri Lanka
G. NON-EXECUTIVE DIRECTOR (Dr. HANS WIJAYASURIYA) – CEO of telecommunication
Sri Lanka
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MANAGEMENT STRUCTURE OF JKH
Figure 1- JKH Management Structure
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2. THE MANAGEMENT AND LEADERSHIP
MANAGEMENT
Management is defined as the process of planning, directing, inspiring, and managing

an organization's human, financial, physical, and knowledge resources to achieve its
goals efficiently and effectively (John 2019). In management manager in the main
influencer, where-as;
Manager is defined as the person who’s responsible for the roles of planning,
coordinating, arranging, directing the resources of the organization. All these roles of the
manager are important for the company’s achievement and smooth operations. (Sean
Kennedy n.d)
LEADERSHIP
Leadership is defined as the practice of inspiring a group of people to work together for
a common goal is known as leadership. In a business environment, this can imply
directing employees and co-workers in accordance with a plan to achieve the company's
objectives. (Susan ward 2020) In leadership leader is the main influencer, where-as;
Leader is defined as the person who support others in achieving their objectives, are not
afraid to recruit others who may be better than them, and who are proud of the success
of their assists. A leader has a clear vision, confident, and possesses dignity, fairness,
modesty, and a laser-like concentration. (Jacob Morgan 2020)
As a result, the key difference between management and leadership is that the
leadership is concerned with persuading others to understand and believe in the
company's mission and cooperate with you to achieve your goals, while the
management is concerned with managing and ensuring that day-to-day operations run
smoothly.
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THE DIFFERENCE BETWEEN MANGER AND LEADER

Table 1- Differences between leader and manager
LEADER MANAGER
▪ Depends on goodwill ▪ Depends on authority

▪ Says “we” ▪ Says “I”
▪ Fixes the breakdown ▪ Blames the breakdown
▪ Plans long term ▪ Plans short term
▪ Develop ▪ Maintain
▪ Do right things ▪ Do things right
▪ Challenge the status quo ▪ Accepts the status quo
▪ Looks into future ▪ Works with present
▪ Communicate and delivers the ▪ Follows the vision
vision
▪ Focuses on people ▪ Focuses on systems and
▪ Take risks structures
▪ New roads ▪ Manage risks
▪ Have followers ▪ Existing roads
▪ Experience incredible success ▪ Have subordinates
▪ Experience some success
3. MANAGEMENT AND LEADERSHIP THEORIES

MANAGEMENT THEORIES
➢ HENRI FAYOL’S MANAGEMENT THEORY
In the year 1841, Henri Fayol was born in Istanbul. When he was 19 years old, he
began working as an engineer for a major mining company in France. At a time when
the mining company hired over 1,000 workers, he rose through the ranks to become the
company's director. (Janet Krenn 2011)
Over time, Fayol was not the first to investigate management behavior, but he was the
first to systemize it. Fayol developed what he considered to be the 14 most essential
management concepts. Ultimately, these explained how managers should organize and
interact with staff. There are 4 major functions of management and mentioned below;
▪ PLANNING
▪ ORGANIZING
▪ LEADING
▪ CONTROLLING
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o Planning is defined as the management process that involves setting objectives and
goals for a company's future progress and deciding the resources that are necessary to
achieve those objectives and goals. Having a strong plan from the start, keeps you
focused on the most important objectives and gives direction for day-to-day activities
and decisions. A healthy planning will help you to set targets for the next month, year,
and hereafter. (Janet Krenn 2011)
o Organizing is defined as management process by which managers prepare, arrange,

and put together the resources of an organization's internal environment in order to
achieve organizational goal. By allocating a company’s resources in order to carry out
plans and does activities as per the plan. It involves providing a structure for the
workers, departments, and activities of the firm. (Janet Krenn 2011)
o Leading is defined as which helps to maximize efficiency and to achieve organizational

goals by guiding and instructing the subordinates the way they have to perform their
work effectively and efficiently. (Janet Krenn 2011)
o Controlling is defined helps the organization in the process of detection mistakes and
the implementation of corrective measures, as well as eliminating deviation from
expectations and keeping project management on track. (Janet Krenn 2011)
Table 2- Advantages and Disadvantages of Henri Fayol’s theory
ADVANTAGES DISADVANTAGES
▪ Division of work among workers ▪ Works becomes informal when it

▪ Workers are specialized in a comes to equity
particular job ▪ No proper consultation is done
▪ Balance responsibilities among (inconsistent)
managers and workers ▪ Very open policy and inadequate to
▪ Smooth running of organization use in organizations
▪ Proper salary for employees ▪ It’s still based on human application
▪ Centralization of work
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➢ HAWTHORNE EFFECT THEORY
The term "Hawthorne Effect" was coined by researcher Henry A. Landsberger during a
study of early tests done in the 1920s and 1930s.Where the first experiment was done
at Hawthorne work electrical company. The electricity corporation funded a study of its
employees to determine if they would be more productive if the lighting was improved.
Other supporting studies, such as the effect of changing working hours and taking work
breaks, similarly boosted productivity, although worker productivity fell once the
research ended. (Will Kenton 2020)
Employees were reacting to the researchers' and supervisors' direct attention during
the analysis, not to any changes in the environmental variables, the researchers
concluded. Landsberger characterized the "Hawthorne Effect" as a transient increase in
employee morale as a result of being seen at work. (Elton Mayo n.d) The following were
identified in the theory;
▪ If employees are paid appropriately, their level of motivation increase
▪ However financial rewards were not the only motivator. Non-financial factors also
should be taken into consider to motivate employees and few mentioned below;
A. Employees should be provided with a safe work environment and conditions
B. Employees should be provided with the necessary level of facilities and

infrastructures
C. Clos-knit work groups should be form in order to build a sense of togetherness

and community
D. There needs to be a psychological contract between the employer and

employees
As employees are key assets of any organization, Hawthorne effect had made a huge
change all over the globe and most of the organizations follows Hawthorne effect
and now employees are well treated by most of the organization all of the globe.
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LEADERSHIP THEORIES
▪ DEMOCRATIC LEADERSHIP
Democratic leadership is a form of leadership that’s where the group members play a
more active role in decision-making. Researchers also discovered that this learning style
is generally one of the most successful and leading to increased efficiency, greater
contributions from group members, and enhanced group morale. (Martin 2020)
Employees meet to explore and resolve issues, with everyone getting an influence on
the decision process. Decisions can be made consultative or persuasive where
consultative is known as discuss before take a decision and persuasive is known as
leader convince others that the leader’s decision is correct, overall morale is the decision
taken will be accepted by the majority either its consultative or persuasive. (Martin
2020)
❖ CHARACTERISTICS OF DEMOCRATIC LEADERSHIP
▪ Group members are encouraged to share idea and opinions

▪ Even though the leader retains the final say over decisions
▪ Members of the group are more engaged about the process.
▪ Creativity is encouraged and rewarded
Table 3- Democratic leadership advantages and disadvantages
ADVANTAGES DISADVANTAGES
▪ It is effective while attempting to ▪ t has the ability to encourage

resolve a difficult issue. unpleasant feelings.
▪ It promotes innovation and ▪ It may cause lethargy.
involvement ▪ It takes time to achieve an
▪ It promotes innovation and agreement.
involvement ▪ It includes a measure of counting
▪ A simple leadership style that uncertainty.
everyone may use ▪ It is not a style of leadership for
▪ It promotes transparency in the everyone.
workplace. ▪ It encourages no one to accept
▪ It boosts employee satisfaction. blame for failures
▪ It improves the team's ▪ It necessitates a set of abilities or a
knowledge. particular degree of education.
▪ It establishes a clear vision for
the future.
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▪ CONTINGENCY LEADERSHIP
Contingency theory is simply can be explained as having a “Backup-plan” or “Plan-B”

where in case if there’s anything seems like to fail automatically backup plan or the plan
B can be initiated to achieve success. Two consecutive study initiatives aiming to
pinpoint successful leadership actions had an impact on contingency leadership.
(Richard 2010) There are a number of different sub-theories that fall under the general
contingency umbrella. They include: Fiedler’s Contingency Theory, the Path-Goal
Theory, the Situational Leadership Theory and will look into Fielder’s Contingency
theory;
• FIELDER’S CONTINGENCY THEORY
Fielder’s contingency theory proposes that effective leadership is based not just on
the leader's style, but also on the level of influence he or she has over the situation.
Strong leader-member relationships are needed for success. Leaders must therefore
explicitly present missions, including priorities and procedures. They must also have
the courage to prescribe penalties and incentives. (Anon 2020) The ideology of
Fielder’s theory can be divided into 2 as;
A. PSYCHOLOGICALLY CLOSE MANAGEMENT STYLE (PCM) = PCM prefer

casual relationships, are sometimes too involved with human affairs, and prefer
informal to formal interactions... Even if they have excellent leadership skills,
they are cautious in their personal relationships.
EXAMPLE;
• BCAS is maintaining a PCM style within the organization. Where they need
to satisfy students with friendly teaching methods that students understand
well and interact easily
B. PSYCHOLOGICALLY DISTANT MANAGEMENT STYLE (PDM) = Formal

relationships are preferred. And if they often have good interpersonal skills, they
appear cautious in their personal relationships. 'Task-oriented' is a term used to
describe this process.
EXAMPLE;
• Construction firms maintain PDM style where workers should need to
complete the tasks on time in order to maximize profits.
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4. THE MANAGEMENT AND LEADERSHIP MAINTAINED IN JOHN

KEELLS HOLDINGS
As above I have mentioned 4 theories, 2 on management and other 2 are on leadership,

where all those four are strictly maintained at John Keells Holdings. As John Keells
Holdings is the largest conglomerate in Sri Lanka JKH need to maintain a good
management and leadership system among their business in order achieve success
efficiently and effectively.
The five non executives of JKH are responsible for the management maintenance with
Henri Fayol’s management theories where it helps them to have a good planning for the
future of the company- that involves setting objectives for a company's future progress
and to organize the framework for the staff, offices, divisions, and operations which
administrators plan, structure, and assemble the resources of an organization.
Also Leading helps to maximize efficiency and to achieve organizational goals by

instructing the subordinates the way they have to perform their work effectively and
efficiently and by controlling manager checks whether tasks are achieved and what are
changes to be takes place to increase efficiency and effectiveness.
And JKH says employees are their key assets. Where they treat every employee equally in
all manner. Employees are provided salaries and financial benefits on time and employees
are being treated with non-financial benefits too such as employees are provided safe
working environment and necessary facilities as they are required.
JKH helps every employee personally for work life balance by providing housing loans,
scholarships for children and many more by considering employee’s performance and also
no employee is recruited without an agreement where employee gets the freedom of
work. This management system which is maintained to support employees in known as
Hawthorne effect.
As everyone knows no large-scale business can run only with management systems, they
do need leadership systems too in order to control and maintain company’s productivity,
reputation (Goodwill). Therefore, JKH’s main strategic leadership followed is Democratic
leadership - Employees gather to discuss and address conflicts, with everyone and having
an opportunity to participate in decision-making. Where no decision is taken without
considering other employees within the organization. Where the decisions may be much
effective for the organization. For the great success of JKH, democratic leadership is being
a major pillar of the organization.
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As per every employee is a key asset for JKH and employees are being treated very well
employees do support JKH by expressing their creative ideas and skills in order for the
decision making and for the growth of JKH.
JKH is maintaining a high production and services with very well treated employees. JKH
is much concerned about the growth of the company, therefore automatically they do
care for the people of their organization and production of their organization and they do
maintain the resources and business activities with many management and leadership
theories and concepts and we saw few of them above where JKH does an excellence
service.
As per the managerial grid, any organization can be categorized into few levels and will
see what about JKH. As we all know the excellence of JKH, it takes much concerns about
the people and production equally in order to the growth of the organization. Where JKH
can be put into the category of Team management which explains Production and people
both are concerned highly and maintained very well where any organization can reach
any height if they achieve only these two requirements. Therefore, I do say JKH is a well
maintained, well growing company. If they maintain these two things (people and
production) they can do any miracles and I do believe that as a stakeholder. You can see
the managerial grid below;
Figure 2- Managerial grid
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5. RECCOMMENDATIONS FOR JKH
I do recommend JKH for the growth of their excellence. If JKH spend more on training and
development of employees, where the current job of employees can give be specialized
and efficient also will be helpful for the growth of the employees.
And then I do recommend JKH to sponsor for the employees for the education need where
every employee can learn more in their specialized work and do it better for the company.
In this sponsorship both employee and employer are satisfied where due to higher
knowledge on work and which will help for the employee’s career and also the company
production too will increase due to educated knowledge and well skilled workers.
6. CONCLUSION
LO 1 & LO 2
I have started this report with a brief introduction of John Keells Holdings mentioning their
key milestones, subsidiary companies and financial stability with management structure.
Then I have thoroughly explained the roles and difference of a management and
leadership with two great management theories of Henri Fayol (Functions of
management), Hawthorne effect (Employees) and two great Leadership theories of
Democratic leadership (Group decision), Contingency theory (Fielder’s theory).
Then I have discussed about JKH’s management secrets how they do run a superb
management and leadership within the organization where JKH is being placed as team
management (the best management) in managerial grid. Then after I have mentioned few
recommendations that JKH need to concern for the growth of their company. Where the
Sri Lanka’s largest conglomerate can become Asia’s largest conglomerate if they do follow
the minor recommendations which will be helpful for the growth of their company. Then
I have finished the report with this conclusion.
Hope I have addressed all concerns. Feel free to contact me if in need of further
information
Thank-you
Human Resource Executive
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LO 3 & LO 4
1. TOTAL QUALITY MANAGEMENT
▪ DEFINITIONS
o Total Quality Management (TQM) is a customer-focused approach that attempts

to enhance business operations on a continual basis. It guarantees that all related
efforts are directed toward a single objective of increasing product or service
quality, as well as improving the manufacturing or service delivery process.
However, the emphasis is put on fact-based decision making, with the use of
performance metrics to monitor progress. (Adam Barone 2021)
o Total Quality Management (TQM) is a management framework based on the belief

that an organization can build long-term success by having all its members, from
low-level workers to its highest ranking executives, focus on improving quality and,
thus, delivering customer satisfaction. (Mary K.Pratt 2019)
o Total quality management (TQM) describes a management system wherein a

company attains organizational advancement through a commitment to customer
requirements. A company meets those requirements when it empowers every
employee in every department to maintain high standards and strive for
continuous improvement. Total quality management is the predecessor of many
quality management systems, such as Six Sigma, Lean, and ISO. (Khurram Hashmi
n.d)
▪ TQM AND ITS PRINCIPLES
Main goal of TQM is to produce higher quality products and services with lower cost.
TQM was originated in 1950s and today mainly used in Japan. To achieve TQM the
organization should concentrate on few key elements like Integrity, Ethics, Trust,
Training, Teamwork, Communication, Recognition and leadership should be
developed within the organization. (Dr. Joseph A Defeo 2019)
Along with the above elements, TQM cannot be easily achieved. Also, everyone in the
organization should hold hand to hand and work together and should have a proper
understanding among them to achieve TQM and organization should achieve quality
17
at all levels within the organization. And along with this TQM has 8 key principles
which a company should focus mainly to achieve TQM successfully.
A. CUSTOMER SATISFACTION
With customer feedback, reviews understanding the quality determined (needs
and wants) by the customers and improve the quality of products and services
with figuring out the necessities and meet their expectations to satisfy customer.
B. EMPLOYEE EMPOWERMENT
Every employee should be responsible for the quality of the products and services.
Therefore, total commitment of employees and employees should feel
empowered to make decisions, in order to reach the goal
C. PROCESS APPROACH
To checks whether steps are taken at right time and to speed up production
process is very important and process ensures and analyze the following and
previous activities of the plan.
D. INTEGRATED SYSTEM
Integrated system allows for TQM, as everybody in every department should have
a good understanding of policies, standards and objectives. This helps the
company for continuous improvement.
E. STRATEGIC APPROACH
Provide employees with the proper training and resources that will help them
complete their individual steps in the process. Continually improve processes and
products, and upgrade equipment as necessary to reach goals.
F. CONTINUOUS IMPROVEMENT
As customer satisfaction cannot happen in on single day, continuously the
business should find ways to improve and adopt products and services. Therefore,
implementing policies, recognize, acknowledge, and encourage innovations to
improve process and development.
G. FACT BASED DECISION MAKING

After a research analyze of data, better decisions can be taken with accurate
information gathered. This leads to better understanding of customers and
market.
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H. COMMUNICATION
Everyone should be aware of plan, strategy to achieve goals. There’s a great risk
of failure if there’s no proper communication. Effective communication within
organization is very much important.
▪ EXAMPLES OF TOTAL QUALITY MANAGEMENT
1) Manufacturer of automobiles TQM is exemplified by Toyota. Toyota's

implementation of TQM and Kaizen resulted in improved product and work quality
at all levels of the company. Toyota adopted a statistical concept recommendation
system, which is a comparable approach. Which was based on a Ford
recommendation system. Later in 1965, Toyota was awarded the Deming
Application prize for major advances in quality management improvement. (Marry
K.Pratt 2019)
2) Another example of TQM is Tata Steel of India. In 1890s Tata Steel adopted TQM
and the company was awarded the Deming Application prize in 2008. Tata steel
used TQM methodologies to gain a deep understanding of customers. (Marry
K.Pratt 2019)
▪ BENEFITS OF TOTAL QUALITY MANAGEMENT
o CUSTOMERS
▪ Customer satisfaction increases.
▪ Can get quality products and service.
▪ Reduce the number of issues with products and services.
▪ Customers are being given more attention.
o ORGANIZATION
▪ Can resolves problems before they occur.
▪ Control process to avoid and reduce risks.
▪ Employees' total productivity should be increased.
▪ Reduce the overall cost of quality.
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▪ TQM ADVANTAGES AND DISADVANTAGES
Table 4- Advantages and Disadvantages of TQM
ADVANTAGES OF TQM DISADVANTAGES OF TQM
▪ TQM produce high quality products ▪ TQM is the requirement for

with lower cost. The focus on utilizing company-wide commitment to
high-quality data and improve quality improvement, as well as the
reduction of waste and saves time. difficulties in acquiring such
commitment.
▪ As a result, there will be fewer costs,
which will be passed on to customers ▪ For the program to be genuinely
in the form of lower pricing. successful, all levels of
management must be on board.
▪ Companies that effectively use TQM
are able to eliminate variability while ▪ Any insufficient effort or resources
maintaining the consistency that will endanger the success of a TQM
consumers need. program, producing severe
consequences across the
▪ This increase customer loyalty. And organization.
employee engagement will reduce
employee turnover and saves money
is trainings
2. KEY TOOL OF TOTAL QUALITY MANAGEMENT
▪ KAIZEN
Kaizen is a Japanese phrase that means "constant improvement" or "transformation for

the best." It is a Japanese business philosophy that focuses on processes that enhance
operations over time and incorporate all personnel. It refers to the practice of looking
for ways to improve work processes on a regular basis. The practice involves small,
incremental changes rather that large changes. With Kaizen, all people within the
organization look for possible improvement and opportunities. (Marshall Hargrave
2021) There are 4 tools comes under KAIZEN and all the four are briefly analyzed and
explained below;
20
A. PDCA OF KAIZEN
PDCA was invested in 1920 by Mr. Walter A. Shewart. It is a tool for implementing
change in a company, and it is a never-ending process that leads to continuous progress.
The PDCA technique is a way of reducing waste and increasing efficiency in the goal of
continuous improvement. (Anon 2018) There are four steps under PDCA process and
those are mentioned below;
• Analyze current
problems and • Implement plan
conditions • Test small
• Establish change changes
objectives • Gather data on
• Creates processes the change's
to achieve effectiveness
solutions
PLAN DO
• Standardize the ACT CHECK • Evaluate data

solution
• Review and define • Identify
next issues deviations
between
outcomes and
planned
objectives
Figure 3- PDCA KAIZEN
The “PLAN” phase of PDCA cycle, the planning approach involves defining the problem
to be solved, assessing the available and required resources, determining the optimal
solution, and developing key performance indicators. (Marshall 2021)
The “DO” phase of PDCA cycle, the actions taken as per the plan in PDCA process and
this will be checked by the managers many times and process will go on. (Marshall
2021)
The “CHECK” phase of PDCA cycle, helps to whether the project is going as per expected.
If there’s any mistakes or something is wrong, can be corrected. (Marshall 2021)
21
The “ACT” phase of PDCA cycle, when the plan is fully implemented, it may adopt new
policies to improve the process. (Marshall 2021)
➢ IF ABC ADOPTS PDCA
This PDCA tool can be implemented in our company for the higher performance of any
kind of projects that ABC is going to lead. This provide continuous benefits for the
organization, as well as to have a proper and appropriate data and information of what
we did and what are we going to do in order to achieve success of any of the projects
that ABC Pvt Ltd is going to start or lead.
PDCA will be helpful to us to improve our management system and to compete global
car manufacturers, as PDCA cycle measures and constantly records the result, this helps
to understand the problem and how it can be solved efficiently.
In this competitive market, PDCA cycle is very important as it is a continuous

improvement process, “check” stage is a main factor which will help us to correct faults
on time and before they cause financial losses.
As the PDCA is controlling and monitoring all the characteristics of the project, it is
possible for ABC Pvt Ltd to reduce negative impacts and risks can be amplified, as well
as one of the greatest benefits of PDCA is allows ABC Pvt Ltd for better planning in
strategic development and fault detection and increasing performance, reducing
costs, optimizing productivity and could easily expand the business.
B. 5S OF KAIZEN
5S is a concept and a method of arranging and managing a workspace with the goal of
increasing productivity and reducing waste in an efficient, effective, and safe manner.
Toyota created the 5S system in Japan in the 1980s. 5S is for the improvement of
working environment through reduction of overburden, inconsistency and wastage.
(Brian Mcfadden 2019) The 5s are SORT, SET IN ORDER, SHINE, STANDARDIZE and
SUSTAIN and all the 5s are figured out below with a brief description;
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SHINE
Clean the work
SET IN ORDER area so it is neat STANDARDIZE
and tidy
Set standards for a
Arrange items to
consistency organized
promote efficient
workplace
workflow
5S
SORT SUSTAIN
Keep only Maintain and
necessary items review
in the work place standards
Figure 4- 5s KAIZEN
➢ IF ABC ADOPTS 5S
As 5s is mainly developed to maintain a clean and peaceful working environment along

with to reduce wastage and save time and energy. If our company adopts 5s we can
improve our production along with a clean and tidy maintained working environment.
Phase “SORT” would help us to sort the materials and to keep only the essentials items
that are required to complete the tasks. The materials and items can be categorized as
necessary and unnecessary and may not necessary. This would help to save time and
energy in looking for the required item. (Anon 2020)
Phase “SET IN ORDER” would help us to ensure that everything is in order at designated
place for the required work to be done properly. Where the tasks may be fit easier for
the workers as everything is set in order and this would reduce stress and concentrate
in the work. (Anon 2020)
Phase “SHINE” would help us to keep working place clean and tidy, as if we bring a
routine of cleaning the equipements, tools and machineries daily and this would create
ownership and build pride in the workers. (Anon 2020)
23
Phase “STANDARDIZE” would lead equalization of activities, easy implementations,

equalization process output and everyone’s participation. (Anon 2020)
Phase “SUSTAIN” would help to define a new mind set in workplace, no employees will
be lazy or bored as this will take place as per the standards. Employees will keep on
working for the improvement, then prevent fallbacks and further improvement.
Therefore, its will make production efficiency and increase productivity. (Anon 2020)
The overall benefits of 5S would be reduction in costs, higher quality, increased

productivity, great employee satisfaction and a safer worker environment can be
made within the organization.
C. QUALITY CIRCLE
W. Edwards Deming first proposed quality circles in the 1950s, and he recognized Toyota
as an example of the practice. In 1962, the concept was established throughout Japan,
Kaoru Ishikawa, improved on it. A quality circle is a participative management strategy
in which employees are engaged to contribute solve problems related to their own
occupations. Employees that work together in an operation establish circles that
assemble at regular intervals to discuss quality issues and find solutions for
improvement. Quality Circles aim to develop individuals and generate actual interest
and attention to their job in order to increase quality, productivity, and cost savings and
so on. (Anon 2017)
Figure 5- QUALITY CIRCLES
24
➢ IF ABC ADOPTS QUALITY CIRCLES
The quality circle concept allows circle members to apply their knowledge, creativity,
and experience to better the work they do by transforming difficult challenges into
opportunities, which benefits both the employees and the organization.
Quality circle will make everyone to participate, the members will listen to each other,
members will feel comfortable and will increase the bond among them, and no single
decisions will be taken and decisions will be taken as per the votes. This will increase
the team spirit, employee empowerment, unity and team work among employees of
ABC Pvt Ltd. Along with this develop internal leadership, encourage a strong sense of
teamwork, quality will increase, increase of productivity and job enrichment. These
are also, benefits that ABC Pvt Ltd will gain if they adopt quality circle process within
the organization.
D. 5 WHY
The 5 Whys method is part of the Toyota Production System. The process was developed
by Sakichi Toyoda, a Japanese inventor and manufacturer, and it became a key
component of the Lean methodology. The 5 Whys concept is one of the most effective
root cause analysis approaches in the Lean management key tools. Every business face
challenges on a daily basis. Using the 5 Whys, on the other hand, can help you identify
WHY?
WHY?
This was
WHY? Belt possible
Slipping
WHY? Forgot to
do it last
Late for night
WHY? work
Dead
Figure 6 - 5 WHYBattery
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the root cause of any problem while also protecting your process against errors and
failures. (Courtney Seiter 2018)
➢ IF ABC ADOPTS 5WHY
The 5 Whys approach may assist you in achieving continuous improvement at any level of
your company, with the primary goal of identifying the problem's fundamental cause. If
ABC Pvt Ltd adopts 5 why process it will help ABC Pvt Ltd to understand how one process
can cause a chain of problem and its highly effective without any complications.
The overall benefit of 5 Why, as ABC Pvt Ltd is new to global market many defects might
arise at any point and if ABC Pvt Ltd has 5 why at that point it will be easy for ABC Pvt
Ltd to find the root cause and not only to solve the problem but also can maintain a
process without that problem occur again. And if ABC Pvt Ltd has Ishikawa diagram
process within the organization the 5 why process will be further easy.
▪ SIX SIGMA
It was introduced by an American engineer Bill Smith of Motorola company in 1986. Six
Sigma focuses on reducing manufacturing defects to less than 3.4 occurrences per
million units or events while simultaneously decreasing operating costs. In other words,
the system is a method for completing tasks faster and with fewer mistakes. The below
table shows the manufacturing defects and the stability of the organization and how the
levels of six sigma relates to the companies. (Adam Hayes 2021)
Table 5- SIGMA DEFECTS
SIGMA LEVEL DEFECTS PER YIELD

MILLION
6 3.4 99.99966%
5 230 99.977%
4 6,210 99.38%
3 66,800 93.32%
2 308,000 69.15%
1 690,000 30.85%
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To achieve six sigma the company’s defects rate should be above the 4 th level with
defects of 6,210 and total production rate of 99.38% and if its lower than the 4 th level
the company need to work more on strengthening the quality of the product of the
company, or leave production if it is in the 1st and 2nd stage.
➢ ABC ADOPTS SIX SIGMA
As ABC Pvt (Ltd) need to expand the car manufacturing to global level and to compete
with the global competitors, achieving six sigma system would be a great strategy for
working more quickly and to reduce errors ultimately, to achieve six sigma successfully
there are 5 factors called “DMAIC” that ABC need to consider and implement them and
those 5 are clearly mentioned below with a figured diagram; (Pankaj Kumar 2021)
ANALYZE
MEASURE Analyze the
process. define
factors of influence.
IMPROVE
What to do need to Identify and
improve? Can we implement
measure this? improvements.
DEFINE SIX CONTROL

Define the
problemsand the SIGMA Assure that
improvements will
objectives sustain
Figure 7- DMAIC
This process will help ABC Pvt Ltd to identify the problems, objectives, opportunities and
goals. Then we could easily measure the performance and we could point out and gain
ideas what are we supposed to improve and develop. Then we can analyze and
investigate deeply about the performance and goal and can conclude by implementing
what are we need for the improvements and finally by checking is everything done in
order and as per the plan we can go for changes and further improvements.
This DMAIC process will obviously help ABC Pvt Ltd for achieving six sigma and enter
global market as one the best competitor in car manufacturing.
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▪ FISH BONE DIAGRAM
In the 1960s, Karou Ishikawa reintroduced the fishbone diagram as a problem-solving

tool at the Kawasaki shipyards, and the concept quickly caught on. The fishbone diagram
was not a new concept in the 1960s. It was regarded as a significant quality control tool
in the 1920s. The fishbone diagram, also known as the Ishikawa diagram, is a cause-and-
effect diagram that helps managers in determining the causes of defects, variations,
errors, or failures. (Anon 2021)
The diagram resembles the skeleton of a fish, with the problem at the top and the causes
of the problem feeding into the spine. Managers can begin looking for solutions once all
of the causes for the problem have been recognized. This will ensure that the problem
does not repeat. It's also useful for product development. (Sarah Lewis 2020)
A fishbone diagram is also an excellent tool for identifying and preventing quality issues
before they occur. Use it to troubleshoot before a problem arises, and you'll be able to
avoid all or most technical difficulties when bringing something new. (Mark Paradies
2020) Below is the Ishikawa diagram with a problem mentioned in the head of the fish
and how the managers are analyzing the fault and solutions are figured following the
head of the fish;
Figure 8- FISH BONE DIAGRAM
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Usually, it is used to identify the problems and then with the spine structure, solutions
can be identified and then the problems won’t repeat again as they found solution. If
ABC Pvt Ltd works on Fish Bone diagram for resolving and identifying problems, this will
always reduce the faults and will not let again the faults to be done.
But for ABC is would be an advantage for the quality product development analysis
and fish bone system will help ABC Pvt Ltd to break the barriers of entering global
market and implementing developed quality cars for the beloved customers.
3. QUALITY COSTS AND ADOPTING TQM
The costs of avoiding, detecting, and resolving product quality issues are known as quality
costs. Quality costs aren't just about raising a product's perceived value to a greater level.
Quality, on the other hand, entails designing and delivering a product that fulfills a
customer's expectations. Quality costs can be divided as conformance and non-
conformance costs;
QUALITY
COSTS
CONFORMANCE NON-
COSTS CONFORMANCE
COSTS
PREVENTION APPRAISAL INTERNAL EXTERNAL

COSTS COSTS FAILURE FAILURE
COSTS COSTS
Figure 9- QUALITY COSTS
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A. CONFORMANCE
The amount of resources required to meet a project's quality criteria and objectives is
referred to as the cost of conformance. The general concept is to focus money on
preventing rather than resolving quality faults. And conformance costs can be divided
into two as prevention cost and appraisal cost; (Edward Chung 2018)
1. PREVENTION
Prevention cost can be known as the money spent on actions and materials that
make producing a high-quality deliverable easier. This includes all of the resources
required to ensure that the product is of high quality. It is the least expensive type
of quality cost, and so is highly recommended. (Arne n.d)
Examples;
▪ Training
▪ Early views
▪ Quality planning
▪ Process improvement initiatives
2. APPRAISAL
The (financial and non-financial) resources used to evaluate and measure the
quality of a project's deliverables are known as appraisal costs. This has to do with
quality control and the money spent on initiatives that discover quality faults. As
a result, control measures and faults can be addressed during the process. This is
done through a variety of inspections. The cheapest method is to have production
employees examine both arriving and leaving components to and from their
workstations, which catches issues faster than other methods. (Edward 2018)
Examples;
▪ Inspections
▪ Testing
▪ Audits
▪ Quality control
B. NON-CONFORMANCE
The term "cost of non-conformance" is often used alternatively with "cost of failure."
It relates not only to the resources needed to fix failures and implement corrective
steps, but also to the indirect consequences of quality concerns, such as poor business
impact. (Edward 2018)
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1. INTERNAL FAILURE
Internal failure costs refer to the expenses of correcting failures that have been
detected within a project or organization. Scrapped or reworked goods are
instances of this. This cost includes the cost of reworking products. (Arne n.d)
Examples;
▪ Repair
▪ Retesting
▪ Updating documentation
2. EXTERNAL FAILURE
The expense of responding to client complaints about the quality of a product or
delivery falls in the category of external failure costs. It also takes into account
indirect impacts like a negative influence on sales and the whole business. It also
includes a cost that is difficult to measure: the cost of losing consumers. (Edward
2018)
Examples;
▪ Technical support
▪ Defect reporting and tracking
▪ Field updates
▪ Loss of future sales
C. TQM VS QUALITY COSTS
Total quality management (TQM) describes a management system wherein a

company attains organizational advancement through a commitment to customer
requirements. And to achieve TQM successfully I would recommend ABC Pvt Ltd to
maintain conformance cost practices which would suit perfectly for the Car
Manufacturing and the concept of conformance cost is to focus money on preventing
rather than resolving quality faults. (Anon 2017)
Whereas ABC Pvt Ltd need to concern on conformance costs which will prevent before
the fault happens. Which can be also called as faults prevention and this will not harm
the production or delay any kind of activities internally or externally of the
organization.
If ABC competes the global market, ABC Pvt Ltd obviously need to achieve TQM and
to achieve TQM effectively conformance costs will be a major pillar. As Prevention
cost of conformance cost will help ABC Pvt Ltd in eliminating faults before the start of
production and lowers quality-control costs and can help businesses improve profits
and with the prevention cost manufacturing process, workers training, statistical
process control can be improved.
31
For example, ABC Pvt Ltd can invest in training programs for the operators of the
production, to ensure that they understand how to manufacture parts correctly.
Which will help the employee to work with knowing what to do and how to do
effectively and this training would increase the productivity of the ABC Pvt Ltd.
And the Appraisal cost of conformance cost will help ABC Pvt Ltd in identifies quality
faults of the production and this can be known as quality control cost. With this ABC
Pvt Ltd can ensure their products meet customer expectations and regulatory
requirements through field tests and inspections.
For example, In ABC Pvt Ltd after the complete production of a car, having a field
test to identify the faults and whether it Is appropriate to meet the customer. If
there’s any fault found in case, that will help the company for maintaining the
reputation as if without a field test if the cars are dispatched and delivered and then
if the customer find a fault and returns, that would be a great drawback for ABC Pvt
Ltd and it will also become an opportunity for the competitors.
4. RECOMMENDATIONS FOR THE FUTURE IMPROVEMENTS OF ABC

PVT LTD AND CONCLUSION
RECOMMENDATIONS
ABC Pvt Ltd is a car manufacturing company in China and produce low budget cars for
local customers in China and hopefully waiting to compete the global car manufacturing
market with the grants provided by the government. And as CEO Mr. Lee wanted to
achieve TQM to enter global market, I would suggest ABC Pvt Ltd to adopt 5S process,
Quality circle process and Fish bone diagram process. Because as ABC Pvt Ltd is new to
the global market at once they are insufficient to compete the top-level manufacturers
like Toyota who have achieved Six Sigma and TQM in the production. And also, ABC Pvt
Ltd won’t be able to adopt process like Six Sigma because the company need to invest
bulk amounts to implement concepts like Six Sigma. Due to economies of scale within in
short period ABC Pvt Ltd cannot capture the global market. Therefore, I would suggest
ABC Pvt Ltd to adopt 5s, fish bone and quality circles concepts along with adopting
conformance costs to lead the company towards achieving TQM step by step from basics.
32
IMPLEMENTING 5S PROCESS
This is one of the least costed process which will be a part to achieve TQM. 5s concept will
help ABC Pvt ltd to keep the working environment clean and in order to make the work
easy and to will make the employees specialized. There are 5 steps to implement 5s within
ABC Pvt
1. DIAGNOSIS
Identify present challenges, places for 2. PREPARE THE PROJECT
improvement, and related issues in Define the project's goal. Choose
the stated scope's many areas. It is either the application areas or the
important to secure management's areas for improvement that will be
support, as well as that of middle implemented: the project may only
management, who may be unwilling cover a part of the entire scope
to apply a strategy that could be (example: some workshops and not
regarded as ‘additional cleaning' others, production or maintenance...)
activities with little appeal.
3. PILOT 4. IMPLEMENTATION
Train the first respondents, the As their zones are deployed, train
project team, and the pilot area's the remaining of the employees.
workforce. Make the savings visible Implement the 5S into day-to-day
to show that the process is operations, managerial follow-up,
important and to drive the team. and support activities, such as team
meetings, dashboards, and training.
5. SUSTAINABILITY
Monitor; At first, keep a close eye on how well
the system is integrated into operational
modes.
Then, just like any other operational mode,
manage the 5S way as if it were another.
Therefore, on a continuous basis with 5S
performance measures.
Figure 10 - IMPLEMENTATION OF 5S
33
IMPLEMENTING QUALITY CIRCLES PROCESS
This is concept that any organization set in to a place and discuss the issue and find a
solution with all the employee ideas and creativity. A simple process which ABC Pvt ltd
can follow to build the team management and bond among employees and also can find
solutions.
Table 6- IMPLEMENTATION OF QUALITY CIRCLES
1. AREA OF OPERATION
Allocate a place to operate quality circles.
2. BRAINSTORMING
Make a list of all the difficulties, issues, and opportunities related with the region of
operation and think beyond the box.
3. PROBLEM SELECTION
Take the ideas from the brainstorming session and group them into subjects in no
particular order. And discover the same issue that presents itself in several ways.
4. PRIORITISE PROBLEMS
Evaluate issues using the Nominal Group Technique and the Pareto 20/80 principle,
Define the issue, What exactly is the apparent issue?, Is there a legal difference between
"as is" and "expected performance"?, What exactly is the issue?, What is the point at
which it becomes a problem? How often does this happen?, What are the apparent
impacts?, Establish high-quality manufacturing requirements and measures.
5. ANALYSE AND DETERMINE CAUSES

Conduct cause-effect analysis.
6. GENERATE ALTERNATIVE SOLUTIONS

Identify and analyze the causes, as well as a variety of prospective solutions. Options
should be sought, implications evaluated, pros and cons weighed, and alternatives
analyzed.
7.THE DECISION PROCESS

Have far-reaching consequences without weighing all of the options and possibilities.
Remember to establish a plan of action for converting the solution into reality, which
involves the factors of "who, what, when, where, why, and how" of fixing difficulties
after you've made your decision.
34
8.TEST POSSIBLE SOLUTION

To determine early operational difficulties and benefits, test the idea or solution using
prototypes, mockups, or trial runs when possible.
9. MANAGEMENT PRESENTATION
After that a thorough preparation for the presentation, including an agenda, will help
you to go through your decision-making process in a clear and mature manner,
indicating that you have gone through it intelligently and intelligently.
10. IMPLEMENT PROPOSED SOLUTION

Review and put the final action plan into practice. Remember to set up any before and
subsequent data gathering so that studies and reports can show improvement
measures.
11. EVALUATE RESULTS AND CONFIRM EFFECTS

Evaluate and report back to management the effects of the solution both good and bad.
12. STANDARDISE AND PREVENT RECURRENCE

In the event that the solution is successful, document the process, and submit for
configuration.
13. REVIEW REMAINING PROBLEMS

This may have altered, necessitating a re-thinking, re-analysis, and re-prioritization of issues. If
not, move on to the second problem.
IMPLEMENTING FISH BONE DIAGRAM PROCESS
Fish Bone Diagram will help ABC Pvt Ltd to analyze the problem till the root and find
solutions and this will also help not to have the similar problem again and again and the
major threats aligned to that problem also can be easily solved.
1. Agree on what the problem is (also referred to as the effect). This is written on the
head of the "fish." Make the scenario as detailed and specific as possible. Remove all
references to a solution when explaining the problem.
2. Agree on the key types of factors for the problem (written as branches from the main
arrow). The most common types are equipment or supply factors, environmental
factors, rules/policy/procedure factors, and people/staff factors.
35
3. Create a list of all possible causes for the issue. "How come this happens?" you might
wonder. When each idea is provided, the facilitator writes the necessary element as a
branch from the appropriate category (and inserts it on the fishbone diagram). If a
cause is linked to many categories, it may appear in multiple locations.
4. For each reason, asks, "Why does this happen?" Sub-causes branching off the cause
branches should be written.
5. Asks "Why?" again and over, obtaining deeper layers of explanations that are
subsequently grouped into related causes or categories. This will aid you in identifying
and then resolving core causes so that future problems may be avoided.
TIPS TO BE USED WHILE ANALYZING THE PROBLEM
▪ Consider having team members write each cause on sticky notes and walking around
the circle asking each individual for one cause while brainstorming causes.
▪ Continue going round and round, gathering additional causes, until all possibilities
have been exhausted.
▪ CMS does not require the use of this instrument, and its completion does not
guarantee regulatory compliance.
▪ Encourage everyone to take part in the brainstorming session and express their own
thoughts.
▪ Keep asking why until you find the root reason utilizing the "five-whys" approach,
which is frequently used in connection with the fishbone diagram.
▪ Consider using a multi-voting approach to help discover the root causes from all of the
ideas provided, such as having each team member select the top three root reasons.
▪ Using three tally marks or colored sticky dots, have each team member place three
tally marks or colored sticky dots on the fishbone adjacent to what they feel are the
root issues that might be addressed.
36
ABC AND CONFORMANCE COST
As a manager I would suggest ABC Pvt Ltd to implement conformance cost of quality costs
to achieve TQM. Conformance cost consists of prevention and appraisal costs, where
Prevention cost of conformance cost will help ABC Pvt Ltd in eliminating faults before the
start of production and Appraisal cost of conformance cost will help ABC Pvt Ltd in
identifies quality faults of the production and this can be known as quality control cost.
When company has both of these costs it will also help the company not to adopt non-
conformance cost. Which is to be known as if the company as Conformance cost, Non-
conformance cost will not arise.
To achieve TQM without struggle, conformance cost method would be a major pillar for
ABC Pvt Ltd.
CONCLUSION LO3 & LO4
In the first question I have started this report with mentioning 3 definitions for Total
Quality Management. And then I have explained briefly the purpose TQM and 8 principles
of TQM. Then after I have mentioned 2 examples of TQM achieved companies and along
with that I have discussed about the advantages and disadvantages of TQM with
mentioning the benefits of TQM for customers and organization.
In the second question I have discussed the key tool of achieving TQM. First of all, I have
explained and figures all the KAIZEN tools of PDCA, 5S, Quality Circles and 5Why with their
process and how they are efficiently affects the ABC Pvt Ltd. And I have discussed about
Six Sigma and how it would affect ABC Pvt Ltd efficiently. And then finally in the 2 nd
question I have discussed about the Fish Bone Diagram which is called as Ishikawa diagram
and I have related this to ABC Pvt Ltd efficiently.
In the third question I have explained and discussed all the quality costs as conformance
(prevent and appraisal) and non-conformance (internal failure and external failure). Then
I have discussed which cost would effectively can be applied for ABC Pvt Ltd to achieve
TQM successfully.
37
And in the fourth question along with the conclusion of all three question also finally I
have explained the recommendations that ABC Pvt Ltd need to follow with three key tools
of TQM and conformance cost in order to achieve TQM successfully.
Hope I have addressed all concerns. Feel free to contact me if in need of further
information
38
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Management Operations in Business Management

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Management Operations in Business Management

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MOHAMED ANFAS - BM33

MANAGEMENT OPERATIONS 1ST SEMESTER

I would like to express my grateful to my subject lecturer Mr. Chrishain, who

I also thankful to everyone who supported me to complete this assignment

A. PDCA OF KAIZEN ....................................................................................................................... 21

Figure 1- JKH Management Structure .............................................................................................. 7

Figure 2- Managerial grid ........................................................................................................ 15

Figure 3- PDCA KAIZEN ............................................................................................................ 21

Figure 4- 5s KAIZEN ................................................................................................................. 23

Figure 5- QUALITY CIRCLES...................................................................................................... 24

Figure 6 - 5 WHY ...................................................................................................................... 25

Figure 8- FISH BONE DIAGRAM ............................................................................................... 28

Figure 9- QUALITY COSTS ........................................................................................................ 29

Figure 10 - IMPLEMENTATION OF 5S ...................................................................................... 33

Table 1- Differences between leader and manager ................................................................. 9

Table 2- Advantages and Disadvantages of Henri Fayol’s theory ......................................... 10

Table 3- Democratic leadership advantages and disadvantages .......................................... 12

Table 4- Advantages and Disadvantages of TQM .................................................................. 20

Table 5- SIGMA DEFECTS ......................................................................................................... 26

Table 6- IMPLEMENTATION OF QUALITY CIRCLES ................................................................. 34

Table 7 - IMPLEMENTATION OF FISH BONE DIAGRAM............. Error! Bookmark not defined.

SUBJECT : Management and Leadership

1. INTRODUCTION OF THE COMPANY

1.1 THE MAJOR SUBSIDIARY COMPANIES RUN UNDER JKH

A. RETAIL = Keells Super, JKOA, Nexus Mobile.

1.2 MANAGEMENT RUN UNDER JOHN KEELLS HOLDINGS

A. CEO & CHAIRMAN (KRISHAN BALENDRA) - Director of the Ceylon chamber of

MANAGEMENT STRUCTURE OF JKH

Figure 1- JKH Management Structure

2. THE MANAGEMENT AND LEADERSHIP

Management is defined as the process of planning, directing, inspiring, and managing

THE DIFFERENCE BETWEEN MANGER AND LEADER

▪ Depends on goodwill ▪ Depends on authority

3. MANAGEMENT AND LEADERSHIP THEORIES

➢ HENRI FAYOL’S MANAGEMENT THEORY

o Organizing is defined as management process by which managers prepare, arrange,

o Leading is defined as which helps to maximize efficiency and to achieve organizational

Table 2- Advantages and Disadvantages of Henri Fayol’s theory

▪ Division of work among workers ▪ Works becomes informal when it

➢ HAWTHORNE EFFECT THEORY

▪ If employees are paid appropriately, their level of motivation increase

A. Employees should be provided with a safe work environment and conditions

B. Employees should be provided with the necessary level of facilities and

C. Clos-knit work groups should be form in order to build a sense of togetherness

D. There needs to be a psychological contract between the employer and

❖ CHARACTERISTICS OF DEMOCRATIC LEADERSHIP

▪ Group members are encouraged to share idea and opinions

Table 3- Democratic leadership advantages and disadvantages

▪ It is effective while attempting to ▪ t has the ability to encourage

Contingency theory is simply can be explained as having a “Backup-plan” or “Plan-B”

• FIELDER’S CONTINGENCY THEORY

A. PSYCHOLOGICALLY CLOSE MANAGEMENT STYLE (PCM) = PCM prefer

B. PSYCHOLOGICALLY DISTANT MANAGEMENT STYLE (PDM) = Formal

4. THE MANAGEMENT AND LEADERSHIP MAINTAINED IN JOHN

As above I have mentioned 4 theories, 2 on management and other 2 are on leadership,

Also Leading helps to maximize efficiency and to achieve organizational goals by

Figure 2- Managerial grid

5. RECCOMMENDATIONS FOR JKH

o Total Quality Management (TQM) is a customer-focused approach that attempts

o Total Quality Management (TQM) is a management framework based on the belief

o Total quality management (TQM) describes a management system wherein a

▪ TQM AND ITS PRINCIPLES

G. FACT BASED DECISION MAKING