Total Quality Management

(ME22347)

Dr. S. B. Mishra
Associate Professor
Department of Mechanical Engineering
Motilal Nehru National Institute of Technology Allahabad
Prayagraj-211004
E-mail ID: sbmishra@mnnit.ac.in
Contact No. 7376334642
 Course : TOTAL QUALITY MANAGEMENT (ME22347)
 Course contents
No. of
Details
hrs
Introduction: Definition of Quality, Dimensions of Quality, Quality Planning, Quality 8
costs - Analysis Techniques for Quality Costs, Basic concepts of Total Quality
Management, Historical Review, Principles of TQM, Leadership – Concepts, Role of
Senior Management, Quality Council, Quality Statements, Strategic Planning, Deming
Philosophy, Barriers to TQM Implementation.

TQM Principles: Customer satisfaction – Customer Perception of Quality, Customer 8

Complaints, Service Quality, Customer Retention, Employee Involvement – Motivation,
Empowerment, Teams, Recognition and Reward, Performance Appraisal, Benefits,
Continuous Process Improvement – Juran Trilogy, PDSA Cycle, 5S, Kaizen, Supplier
Partnership – Partnering, sourcing, Supplier Selection, Supplier Rating, Relationship
Development

Performance measures, basic concepts and strategies , cost of quality, improvement 4

action and plan, Quality awards: Malcolm Baldridge, Deming, etc., balanced score card
method
 Course : TOTAL QUALITY MANAGEMENT (ME22347)
 Course contents
No. of
Details hrs
TQM tools : Benchmarking – Reasons to Benchmark, Benchmarking 6
Process, Quality Function Deployment (QFD) – House of Quality, QFD
Process, Benefits, Taguchi Quality Loss Function, Total Productive
Maintenance (TPM) – Concept, Improvement Needs
Statistical analysis for quality and experimental design, The seven tools of 8
quality, Statistical Fundamentals – Measures of central Tendency and
Dispersion, Population and Sample, Normal Curve, Concept of six sigma,
factor mode and effect analysis and identification of stages, t-test and F
-test, orthogonal design, Taguchi's quality function, orthogonal design
Quality system, Need for ISO 9000 and Other Quality Systems, ISO 4
9000:2000 Quality System – Elements, Implementation of Quality
System, Documentation, Quality Auditing, TS 16949, ISO 14000 –
Concept, Requirements and Benefits
Case studies and discussion of practical industrial and service problems 2
  Course contents
Course Outcomes
Students will be able to
•understand the concept of Quality and its importance
•know the basic concepts of Total Quality Management, its principle and its implementation
•apply TQM tools for quality improvement
•apply Statistical quality control tools and experimental design methods
•understand the Quality systems and its implementation in the organization

Course Assessment Method

As per the guidelines of Dean (Academics)

References:
1. Total Quality Management by Dale H.Besterfiled, Pearson Education Asia, Indian Reprint
2. Introduction to Total Quality: Quality Management for Production, Processing and
Services, by Goetsch and Davis, Prentice Hall
3. Total Quality Management bySuganthi and Samuel, PHI
4. The Management and Control of Quality by James R. Evans and William M. Lindsay,South-
Western (Thomson Learning), 2005.
5. Juran's quality handbook by Joseph M. Juran, McGraw Hill
• Introduction Unit 1

• The rapidly increasing global competition over the past decade

has led to the emergence of new scenarios for most of the
industrial sectors.

• The industries are now associated with rapid technological

changes and product variety proliferation in order to remain
competitive.

• The competitiveness of a company is mostly dependent on its

ability to perform well in dimensions such as cost, quality,
delivery, dependability and speed, innovation and flexibility to
adapt itself to variations in demand.
 Unit 1
• Introduction

• Controlling and improving quality has become an important

business strategy for many organizations;
• manufacturers,
• distributors,
• transportation companies,
• financial services organizations;
• health care providers,
• government agencies
• Other service organizations
 Unit 1
• Introduction

• A business that can delight customers by improving and

controlling quality can dominate its competitors.

• Quality is very essential for competitive advantage.

•Quality has become one of the most important consumer

decision factors in the selection among competing products and
services.

•The phenomenon is widespread, regardless of whether the

consumer is an individual, an industrial organization, a retail
store, a bank or financial institution, or a military defense
program.
• Introduction

•Consequently, understanding and improving quality are key

factors leading to business success, growth, and enhanced
competitiveness.

•There is a substantial return on investment from improved

quality and from successfully employing quality as an integral
part of overall business strategy.

•Quality in the successful organization is fully integrated into

all of the business processes and is an extension of everything
else that has to happen along the path to success, both for
the company and for the people involved.
• Introduction

•Aiming at improving organizational performance through the effective

use of production capability and technology, operations strategy such as
total quality management (TQM), quality function deployment (QFD), six
sigma, business process re-engineering (BPR), just in time (JIT),
benchmarking, performance measurement and many others are
commonly used.

•The concept of quality has evolved from mere specifications, controls,

inspections, systems, and methods for regulatory compliance to a
harmonized relationship with business strategies aimed at satisfying both
the internal and external customer.

•Most people have a conceptual understanding of quality as relating to

one or more desirable characteristics that a product or service should
possess.
• Introduction

Quality can be defined in many ways:

As Specified by Joseph Juran, Quality is the fitness of use
i.e. it is the value of the goods and services as perceived by the
supplier, producer and customer.
The measure also pertains to the degree to which products and
services conform to specifications, requirements and standards at an
acceptable price.

Some of the definitions of the term ‘Quality', provided by other quality

gurus are as follows:

Quality is conformance to requirements (CROSBY)  

The efficient production of the quality that the market expects (DEMING)

Quality is the loss that a product costs to the society after being shipped
to the customer (TAGUCHI)
• Introduction

Quality Definitions.......
The totality of features and characteristics of a product or services that
bear on its ability to satisfy stated or implied needs of the customers
(ASQC)

Quality is what the customer says, it is (FEIGENBAUM)

A quality system is the agreed on company wide and plant wide operating
work structure, documented in effective, integrated,  technical and
managerial procedures for guiding the co-coordinated actions of people,
the machines, or the information of company in the best and most
practical ways to assume customer quality satisfaction and economical
costs of quality. (FEIGENBAUM)
• Dimensions of Quality

1. Performance (Will the product do the intended job?)

Potential customers usually evaluate a product to determine if it will perform

certain specific functions and determine how well it performs them.

Performance refers to a product's primary operating characteristics.

For an automobile, performance would include traits like acceleration, handling,

cruising speed, and comfort.

Because this dimension of quality involves measurable attributes, brands can

usually be ranked objectively on individual aspects of performance.

Overall performance rankings, however, are more difficult to develop, especially

when they involve benefits that not every customer needs.
 
• Dimensions of Quality
 2. Features (What does the product do?)
Features are usually the secondary aspects of performance, the "bells and
whistles" of products and services, those characteristics that supplement their
basic functioning.
The line separating primary performance characteristics from secondary features
is often difficult to draw.
What is crucial is that features involve objective and measurable attributes;
objective individual needs, not prejudices, affect their translation into quality
differences.
 
3. Reliability (How often does the product fail?)
This dimension reflects the probability of a product malfunctioning or failing
within a specified time period.
Among the most common measures of reliability are the mean time to first failure,
the mean time between failures, and the failure rate per unit time.
Because these measures require a product to be in use for a specified period, they
are more relevant to durable goods than to products or services that are
consumed instantly.
• Dimensions of Quality
4. Conformance to Standards
(Is the product made exactly as the designer intended?)
Conformance is the degree to which a product's design and operating
characteristics meet established standards.

The two most common measures of failure in conformance are defect rates in the
factory and, once a product is in the hands of the customer, the incidence of
service calls.

These measures neglect other deviations from standard, like misspelled labels or
shoddy construction, that do not lead to service or repair.
 
5. Durability (How long does the product last?)
A measure of product life, durability has both economic and technical dimensions.

Technically, durability can be defined as the amount of use one gets from a
product before it deteriorates.

Alternatively, it may be defined as the amount of use one gets from a product
before it breaks down and replacement is preferable to continued repair.
• Dimensions of Quality
6. Serviceability (How easy is it to repair the product?)
Serviceability is the speed, courtesy, competence, and ease of repair.
Consumers are concerned not only about a product breaking down but also about
the time before service is restored, the timeliness with which service
appointments are kept, the nature of dealings with service personnel, and the
frequency with which service calls or repairs fail to correct outstanding problems.

In those cases where problems are not immediately resolved and complaints are
filed, a company's complaints handling procedures are also likely to affect
customers' ultimate evaluation of product and service quality.
 
7. Aesthetics (What does the product look like?)
Aesthetics is a subjective dimension of quality.
How a product looks, feels, sounds, tastes, or smells is a matter of personal
judgement and a reflection of individual preference.

On this dimension of quality it may be difficult to please everyone.

• Dimensions of Quality
 
8. Perceived Quality (What is the reputation of the company or its product?)

Consumers do not always have complete information about a product's or

service's attributes;
indirect measures may be their only basis for comparing brands.

A product's durability for example can seldom be observed directly;

it must usually be inferred from various tangible and intangible aspects of the
product.

In such circumstances, images, advertising, and brand names - inferences about

quality rather than the reality itself - can be critical.

Reference:
Garvin, David .A., "Competing on the Eight Dimensions of Quality", Harvard
Business Review, November-December 1987.
Product features that meet customer needs
• Higher quality enables companies to:
• Increase customer satisfaction
• Make products salable
• Meet competition
• Increase market share
• Provide sales income
• Secure premium prices
• The major effect is on sales.
• Usually, higher quality costs more.
Freedom from deficiencies
• Higher quality enables companies to:
• Reduce error rates
• Reduce rework, waste
• Reduce field failures,
• warranty charges
• Reduce customer dissatisfaction
• Reduce inspection, test
• Shorten time to put new
• products on the market
• Increase yields, capacity
• Improve delivery performance
• Major effect is on costs.
• Usually, higher quality costs less.
Satisfaction and Dissatisfaction Are Not Opposites
Customer satisfaction comes from those features which induce
customers to buy the product.
Dissatisfaction has its origin in deficiencies and is why customers
complain.
Some products give little or no dissatisfaction; they do what the
producer said they would do. Yet they are not salable because some
competing product has features that provide greater customer
satisfaction.
The early automated telephone exchanges employed
electromagnetic analog switching methods.
Recently, there was a shift to digital switching methods, owing to
their superior product features.
As a result, analog switching systems, even if absolutely free from
product deficiencies, were no longer salable.
QUALITY: THE FINANCIAL EFFECTS
The Effect on Income:
Income may consist of sales of an industrial company, taxes
collected by a government body, appropriations received by a
government agency, tuitions received by a school, and donations
received by a charity.
Whatever the source, the amount of the income relates in varying
degrees to the features of the product produced by the recipient.
In many markets, products with superior features are able to secure
superior income, whether through higher share of market or
through premium prices.
Products that are not competitive in features often must be sold at
below-market prices.
Product deficiencies also can have an effect on income.
QUALITY: THE FINANCIAL EFFECTS
The Effect on Income:
The customer who encounters a deficiency may take action of a
cost-related nature: file a complaint, return the product, make a
claim, or file a lawsuit.
The customer also may elect instead (or in addition) to stop buying
from the guilty producer, as well as to publicize the deficiency and
its source.
Such actions by multiple customers can do serious damage to a
producer’s income.
QUALITY: THE FINANCIAL EFFECTS
The Effect on Costs.
The cost of poor quality consists of all costs that would disappear if there
were no deficiencies—no errors, no rework, no field failures, and so on.
This cost of poor quality is shockingly high.
In the early 1980s, it is estimated that within the U.S. manufacturing
industries, about a third of the work done consisted of redoing what had
already been done.
Since then, estimates from a sample of service industries suggest that a
similar situation prevails in service industries generally.
Deficiencies that occur prior to sale obviously add to producers’ costs.
Deficiencies that occur after sale add to customers’ costs as well as to
producers’ costs.
In addition, they reduce producers’ repeat sales. Section 8, Quality and
Costs, is devoted to the ways in which quality can influence costs.
 HOW TO MANAGE FOR QUALITY: THE JURAN TRILOGY
To attain quality, it is well to begin by establishing the “vision” for the organization,
along with policies and goals.

Conversion of goals into results (making quality happen) is then done through
managerial processes—sequences of activities that produce the intended results.
Managing for quality makes extensive use of three such managerial processes:
● Quality planning
● Quality control
● Quality improvement
These processes are known
as the “Juran trilogy.”
 HOW TO MANAGE FOR QUALITY: THE JURAN TRILOGY
They parallel the processes long used to manage for finance.
These financial processes consist of:
Financial planning: This process prepares the annual financial budget. It
defines the deeds to be done in the year ahead. It translates those deeds into
money. It determines the financial consequences of doing all those deeds.
The final result establishes the financial goals for the organization and its
various divisions and units.
Financial control: This process consists of evaluating actual financial
performance, comparing this with the financial goals, and taking action on
the difference—the accountant’s “variance.” There are numerous
subprocesses for financial control: cost control, expense control, inventory
control, and so on.
Financial improvement: This process aims to improve financial results. It
takes many forms: cost-reduction projects, new facilities to improve
productivity, new product development to increase sales, acquisitions, joint
ventures, and so on.
 HOW TO MANAGE FOR QUALITY: THE JURAN TRILOGY
They parallel the processes long used to manage for finance.
These financial processes consist of:

These processes are universal—they provide the basis for financial

management, no matter what the type of enterprise is.
The financial analogy helps managers realize that they can manage for
quality by using the same processes of planning, control, and
improvement. Since the concept of the trilogy is identical to that used
in managing for finance, managers are not required to change their
conceptual approach.
Much of their previous training and experience in managing for
finance is applicable to managing for quality.
While the conceptual approach does not change, the procedural steps
differ. Figure shows that each of these three managerial processes has
its own unique sequence of activities.
Each of the three processes is also a universal—it follows an unvarying
sequence of steps. Each sequence is applicable in its respective area,
no matter what is the industry, function, culture, or whatever.
Principles of Total Quality Management (TQM)
Total Quality Management (TQM) is a management approach
focusing on the improvement of quality and performance in all
functions, departments, and processes across the company to
provide quality services which exceed customer expectations.
TQM expands the scope of quality of every department from top
management to lower level employees.
It enables management to adopt a strategic approach to quality
and put more effort on prevention rather than on inspection.
Through TQM, all employees are trained in a professional manner
and encouraged to make decisions on their own to improve the
overall quality and attain higher standards.

This is key to achieving the TQM results desired, because without

your employees on board and feeling empowered, you might as
well be swimming upstream.
Principles of Total Quality Management (TQM)
Through TQM, companies increase customer satisfaction, reduce
costs, and foster team work.
Companies can also gain higher returns on sales and investment.
The ability to provide quality services allow for higher prices to be
charged.
Total quality means better access to global markets, greater
customer loyalty, wider recognition as a quality brand, etc.
TQM is broadly based on the following principles:
• Customer Centric Approach 
• Employee Involvement 
• Continual Improvement 
• Strategic Approach to Improvement
• Integrated System 
• Decision Making
• Communications
Principles of Total Quality Management (TQM)
Customer Centric Approach –
Consumers are the ultimate judge to determine whether products
or services are of superior quality or not.
No matter how many resources are pooled in training employees,
upgrading machines and computers, incorporating quality design
process and standards, bringing new technology, etc.; at the end of
the day, it is the customers who have the final say in judging your
company.
Companies must remember to implement TQM across all fronts
keeping in mind the customers.
Principles of Total Quality Management (TQM)
Employee Involvement –
Ensuring total employee involvement in achieving goals and
business objectives will lead to employee empowerment and active
participation from the employees in decision making and
addressing quality related problems.
Employee empowerment and involvement can be increased by
making the workspace more open and devoid of fear.
Continual Improvement –
A major component of TQM is continual improvement.
Continual improvement will lead to improved and higher quality
processes.
Continual improvement will ensure companies will find new ways
and techniques in producing better quality products, production, be
more competitive, as well as exceed customer expectations.
Principles of Total Quality Management (TQM)
Strategic Approach to Improvement –
Businesses must adopt a strategic approach towards quality improvement to
achieve their goals, vision, and mission.
A strategic plan is very necessary to ensure quality becomes the core aspect of all
business processes.

Integrated System –
Businesses comprise of various departments with different functionality
purposes.
These functionalities are interconnected with various horizontal processes TQM
focuses on.
Everyone in the company should have a thorough understanding of the quality
policies, standards, objectives, and important processes.
It is very important to promote a quality work culture as it helps to achieve
excellence and surpass customer expectations.
An integrated system ensures continual improvement and helps companies
achieve a competitive edge.
Principles of Total Quality Management (TQM)
Decision Making –
Data from the performance measurement of processes indicates the current
health of the company. For efficient TQM, companies must collect and analyze
data to improve quality, decision making accuracy, and forecasts.
The decision making must be statistically and situational based in order to avoid
any room for emotional based decisions.
Communications –
Communication plays a crucial role in TQM as it helps to motivate employees
and improve their morale during routine daily operations.
Employees need to be involved as much as possible in the day to day operations
and decision making process to really give them a sense of empowerment.
This creates the environment of success and unity and helps drive the results the
TQM process can achieve.
It requires immense efforts, time, courage, and patience to successfully
implement TQM.
Businesses successfully implementing TQM can witness improved quality across
all major processes and departments, higher customer retention, higher revenue
due to improved sales, and global brand recognition.
Concepts of Leadership

Leadership and management practices are useful to individual’s

success and that of every organisation.

Good leaders are made, not born. If one has the desire and
willpower, he can become an effective leader. Good leaders
develop through a never ending process of self-study, education,
training, and experience (Jago, 1982).

To inspire workers/ subordinates into higher levels of teamwork,

there are certain things one must know, and, do.

Leadership do not often come naturally, but are acquired through

continual work and study.

Good leaders are continually working and studying to improve their

leadership skills; they are NOT resting on their past laurels.
Definitions of Leadership

“The meaning of a message is the change which it produces in the

image.” — Kenneth Boulding in The Image: Knowledge in Life and
Society.

Leadership is a process by which a person influences others to

accomplish an objective and directs the organization in a way that
makes it more cohesive and coherent.

Some other popular definitions of Leadership are:

A process whereby an individual influences a group of individuals to
achieve a common goal (Northouse, 2007).

The U.S. military has studied leadership in depth. One of their

definitions is a process by which a person influences others to
accomplish a mission (U.S. Army, 1983).
Definitions of Leadership

Leadership is inspiring others to pursue your vision within the

parameters you set, to the extent that it becomes a shared effort, a
shared vision, and a shared success (Zeitchik, 2012).

Leadership is a process of social influence, which maximizes the

efforts of others, towards the achievement of a goal (Kruse, 2013).

All the definitions have a couple of processes in common:

• A person influences others through social influence, not power, to

get something accomplished (bosses use power to get things
done).
• Leadership requires others, who are not necessarily direct-reports,
to get something accomplished.
• There is a need to accomplish something.
Leadership
Leaders carry out this process by applying their leadership
knowledge and skills. This is called Process Leadership (Jago, 1982).

However, we know that we have traits that can influence our

actions. This is called Trait Leadership (Jago, 1982), in that it was
once common to believe that leaders were born rather than made.

Traits means a quality that forms part of ones character or

personality

These two leadership types are shown in the chart (Northouse,

2007:
Factors of Leadership
There are four primary factors of leadership (U.S. Army, 1983):
Leader
He must have an honest understanding of who he is, what he knows, and what he
can do. Further, it is the followers, not the leader or someone else who determines
if the leader is successful. If they do not trust or lack confidence in their leader,
then they will be uninspired. To be successful a leader has to convince his followers,
not himself or his superiors, that he is worthy of being followed.
Followers
Different people require different styles of leadership. For example, a new hire
requires more supervision than an experienced employee does. A person who lacks
motivation requires a different approach than one with a high degree of
motivation. The fundamental starting point is having a good understanding of
human nature, such as needs, emotions, and motivation. Followers must come to
know his employees' be, know, and do attributes.
Communication
Lead through two-way communication. Much of it is nonverbal. For instance, when
a leader “set the example,” that communicates to his people that he would not ask
them to perform anything that he would not be willing to do. What and how he
communicates either builds or harms the relationship between him and his
followers.
Factors of Leadership
There are four primary factors of leadership (U.S. Army, 1983):

Situation
All situations are different. What is done in one situation will not always work in
another. He must use his judgment to decide the best course of action and the
leadership style needed for each situation. For example, he may need to confront
an employee for inappropriate behavior, but if the confrontation is too late or too
early, too harsh or too weak, then the results may prove ineffective.

Also note that the situation normally has a greater effect on a leader's action than
his or her traits. This is because while traits may have an impressive stability over a
period of time, they have little consistency across situations (Mischel, 1968). This is
why a number of leadership scholars think the Process Theory of Leadership is a
more accurate than the Trait Theory of Leadership.

Various forces will affect these four factors. Examples of forces are:
• your relationship with your seniors
• the skills of your followers
• the informal leaders within your organization
• how your organization is organized
 Bass' Theory of Leadership
Bass' theory of leadership states that there are three basic ways to explain how
people become leaders (Stogdill, 1989; Bass, 1990).
The first two explain the leadership development for a small number of people,
while the third one is the dominant theory today.

These theories are:

Some personality traits may lead people naturally into leadership roles. This is
the Trait Theory.

A crisis or important event may cause a person to rise to the occasion, which
brings out extraordinary leadership qualities in an ordinary person. This is the
Great Events Theory.

People can choose to become leaders. People can learn leadership skills. This is
the Transformational or Process Leadership Theory. It is the most widely
accepted theory today and the premise on which this leadership guide is based.
 Principles of Leadership
1. Know yourself and seek self-improvement - In order to know yourself, you
have to understand your be, know, and do, attributes. Seeking self-
improvement means continually strengthening your attributes. This can be
accomplished through self-study, formal classes, reflection, and interacting
with others.
2. Be technically proficient - As a leader, you must know your job and have a
solid familiarity with your employees' tasks.
3. Seek responsibility and take responsibility for your actions - Search for ways
to guide your organization to new heights. And when things go wrong, as they
often tend to do sooner or later — do not blame others. Analyze the situation,
take corrective action, and move on to the next challenge.
4. Make sound and timely decisions - Use good problem solving, decision
making, and planning tools.
5. Set the example - Be a good role model for your employees. They must not
only hear what they are expected to do, but also see. “We must become the
change we want to see.” - Mahatma Gandhi
6. Know your people and look out for their well-being - Know human nature
and the importance of sincerely caring for your workers.
 Principles of Leadership

7. Keep your workers informed - Know how to communicate with not only
them, but also seniors and other key people.
8. Develop a sense of responsibility in your workers - Help to develop good
character traits that will help them carry out their professional
responsibilities.
9. Ensure that tasks are understood, supervised, and accomplished -
Communication is the key to this responsibility.
10. Train as a team - Although many so called leaders call their organization,
department, section, etc. a team; they are not really teams... they are just a
group of people doing their jobs.
11. Use the full capabilities of your organization - By developing a team spirit,
you will be able to employ your organization, department, section, etc. to its
fullest capabilities.
 The Process of Great Leadership

The road to great leadership that is common to successful leaders

include (Kouzes, Posner, 1987):
Challenge the process - First, find a process that you believe needs
to be improved the most.
Inspire a shared vision - Share your vision in words that can be
understood by your followers.
Enable others to act - Give them the tools and methods to solve the
problem.
Model the way - When the process gets tough, get your hands dirty.
A boss tells others what to do; a leader shows that it can be done.
Encourage the heart - Share the glory with your followers' hearts,
while keeping the pains within your own.
 Management verses Leadership

While management and leadership have a great deal in common,

such as working with people and accomplishing the goals of the
organization, they do differ in their primary functions (Kotter,
1990):

Management's main function is to produce order and consistency

through processes, such as planning, budgeting, organizing,
staffing, and problem solving.

While leadership's main function is to produce movement and

constructive or adaptive change through processes, such as
establishing direction through visioning, aligning people,
motivating, and inspiring.
 Roles and Responsibilities of Senior Management
The senior management of an organization, regardless of size, needs to be
integrally involved with the design, development, and implementation of the
inclusiveness initiative.

Most organizations will find that an in-depth inclusiveness initiative affects all
areas of the organization, and, thus, should consider how to most effectively
involve all managers in the initiative, especially those parts of the initiative
targeted to each manager's department.

Staff members who serve the organization in the capacity of director of programs,
director of human resources, director of operations, director of fundraising,
director of marketing and communications, and other similar positions will likely
be heavily influenced by the outcomes of an inclusiveness initiative.

Some organizations may choose to have senior or management staff take the lead
in their focus areas; for example, in a larger organization, the director of
communications may lead his/her staff through working on Marketing and
Community Relations [1].
 Roles and Responsibilities of Senior Management
A committed senior management and board is not just essential for the daily
running of a business, the formulation of achievable goals and a good strategy,
but it is also necessary for high engagement, functional teams, commitment and
trust. The foundations of a successful company start at the top.

The multinational study found that when employees have confidence in senior
management and the board, they are nine times more likely to be engaged and
committed.

Alongside this, when employees trust their manager's, they also trust that they
will be treated fairly and with respect.

The consequence of such trust is that employees are able to put their energy into
their work (instead of into mistrusting the organisation) and mutual trust and
respect between employer and employee grows.
 what makes exceptional senior managers?
1. Listening to employees
One advantage for senior managers listening to employees is that they know
what is going on inside the organisation and on the shop floor.
Listening to employees keeps them connected.
An additional benefit is that employees also feel more appreciated if they know
managers listen to them and take them seriously.
An essential component to enabling a two-way channel between senior managers
and employees is ample opportunity to provide tips and suggestions.
The offshoot of providing feedback opportunities is the creation of a win-win
situation: engagement and commitment increases, and organisations receive new
and innovative ideas.
Best practices: Creating an environment where employees are heard
Allow employees the chance to partake in a voluntary brainstorm about an
organisation-wide issue. The best results come when a well-defined issue is
selected and the session is overseen by someone who is able to offer assistance.
As senior management, consider organising a monthly initiative with employees
to exchange thoughts about organisation-wide subjects.
Use the new possibilities offered by social intranet to enable employees to share
and discuss their ideas.
 what makes exceptional senior managers?
2. Connecting with employees
The added benefit of senior management staying connected with employees is that trust,
effort, engagement and commitment increases.
Far too often however, we see multinationals adopting an Ivory Tower management style.
Senior management spends little to no time at the lower levels of the organisation, and
invests minimal effort in connecting with employees.
Decisions are made with sole input from the top level, whilst the lower levels feel the
effect of such decisions. 
When witnessing such behaviour we ask one critical question: How can you make good
business decisions if, at the bottom level, you have little connection with your employees
and don’t know what’s going on?
Best practices: Keeping up to date with what’s going on
Invest time in going through the results of your employee survey (both the numerical
results and the comments). The important part is paying close attention to what
employees are saying and showing that you take their input seriously.
Mix with employees as much as possible through work visits, shadowing, or working
alongside them.
Consider organising social initiatives where employees are free to discuss their work,
successes, and concerns with senior management. Successful examples that we have seen
include: a monthly lunch with the CEO and senior management, as well as small scale
seasonal events.
 what makes exceptional senior managers?
3. Clear organisational vision and goals
Clarity about intended goals helps employees make better day-to-day decisions at
work.
Employees know what the collective objective is and they can therefore adapt
their contribution to it accordingly.
The additional advantage is that efficiency between employees is improved, and
less time and resources are needed on issues that do not have any bearing on the
aspirations of multinationals.

Best practices: Creating clear vision/objectives

Try to keep the vision and goals as simple as possible, however large the
organisation may be. If it can’t fit easily into one or two sentences, the chances
are that confusions within the company will arise.
Involve employees in the formulation of the organisational goals. Doing so
enables organisations to enjoy more clarity and support from employees.
Additionally, it enhances employees’ intrinsic motivation to contribute.
Communicate regularly about progress and whether or not the organisational
goals are being reached.
 Role of Managers in Total Quality Management
Total Quality Management is defined as a continuous effort by management to
upgrade and improve the processes and systems to ensure superior quality
products.
Every organization has to take care of its customers. Their feedbacks are
essential.
Total Quality management creates processes and systems based on customer
feedbacks and various researches which eventually help in the development of
organization.
Managers play an important role in Total Quality Management:
Initiating and implementing total quality management programs require great amount
of planning and research.
Managers need to get trained in various TQM practices before implementing the
same.
There are costs involved with the entire process of total quality management.
It is the manager’s responsibility to allocate budgets for TQM at the beginning of
every financial year.
As a manager; you need to work closely with the senior management, human
resource professionals to develop foolproof implementation strategies. Remember, a
manager has to act as a bridge between the senior management and the entire
workforce.
 Role of Managers in Total Quality Management
The role of a manager is to act as a facilitator at the workplace.
It is your duty to assist employees in implementing TQM.
As a manager, it is the responsibility to select and appoint right individuals who
can work as line managers and take charge of the entire project.
The employees, ought to be reliable and diligent and should be capable enough
to handle a crucial project like total quality management.
It is the manager’s responsibility to assign resources for total quality
management, allocate time for various training programs and appreciate
employees who come up with various improvement ideas and strategies which
would help the organization deliver superior quality products.
A manager must communicate the benefits of total quality management to all
other members of the organization.
A manager is always a strong source of inspiration for other employees.
He needs to practice total quality management himself before expecting others to
believe in the same.
Customer feedbacks should be carefully monitored and taken into consideration
while formulating company’s major strategies. Provide frequent reports to staff
members highlighting scope of improvement.
 QUALITY COUNCIL
Organizations need to build quality culture in the organization.
For this purpose, Quality council is established to provide over all direction.
Quality Council is the instrument for maintaining the idea of never-ending quality
improvement.
It is driver for the TQM engine.

STRUCTURE OF Quality council:

1. Chief Executive Officer
2. Senior managers of functional areas (marketing, finance, HR, Quality)
3. Coordinator/consultant (big organizations prefer coordinator while small
organizations prefer consultant)
4. Union representative
5. Front-line representatives
 QUALITY COUNCIL OF INDIA
The Quality Council of India, an autonomous body set up by the Ministry of
Commerce and Industry, Government of India jointly with the Indian Industry
represented by the three premier industry associations i.e. Associated Chambers
of Commerce and Industry of India (ASSOCHAM), Confederation of Indian
Industry (CII) and Federation of Indian Chambers of Commerce and Industry
(FICCI), to establish and operate national accreditation structure and promote
quality through National Quality Campaign.

Quality Council of India (QCI) is registered as a non-profit society with its own
Memorandum of Association and is governed by a Council with equal
representations of government, industry and consumers.
The Council plays a pivotal role at the national level in propagating, adoption and
adherence to quality standards in all important spheres of activities including
education, healthcare, environment protection, governance, social sectors,
infrastructure sector and such other areas of organized activities that have
significant bearing in improving the quality of life and wellbeing of the citizens of
India.
 QUALITY COUNCIL OF INDIA
Quality Council of India (QCI) was set up in 1997 by Government of India jointly
with Indian Industry as an autonomous body under the administrative control of
the Department to establish and operate the National Accreditation Structure for
conformity assessment bodies; providing accreditation in the field of education,
health and quality promotion.

Besides the role of putting in place the accreditation structure, it also promotes
the adoption of quality standards relating to Quality Management Systems (ISO
14001 Series), Food Safety Management Systems (ISO 22000 Series) and Product
Certification and Inspection Bodies through the accreditation services provided by
National Accreditation Board for Certification Bodies (NABCB).

Indian industry is represented in QCI by three premier industry associations

namely ASSOCHAM; CII; and FICCI. QCI is assigned the task of monitoring and
administering the National Quality Campaign a plan scheme of the department,
and also to oversee function of the National Information and Enquiry Services.

To realize the objective of improving quality competitiveness of Indian products

and services, QCI provides strategic direction to the quality movement in the
country by establishing conformity assessment system which is recognized at the
international level.
 QUALITY COUNCIL OF INDIA
Vision
Creating an eco-system for Quality

Excerpts from the speech of Dr. A.P.J. Abdul Kalam, Honorable President of
India inaugurating the 2nd National Quality Conclave on February 9, 2007 at
New Delhi
"My definition of nation prosperity index is equal to GDP including quality of life
for all coupled with value system. It is essential to ensure that all the citizens are
empowered with good quality of life encompassing nutritious foods, good
habitat, clean environment, affordable health care, quality education with value
system and productive employment leading to the comprehensive qualitative
development of the nation.
There is a strong urge in our society to come out century old "Developing
Country" brand name to “Developed Country" status. To become developed
country, we must have competitive edge in the international market. Quality is
very essential to achieve this. We must use competition as an opportunity to
improve our quality and to transform from a technology importer to technology
exporter.“
 QUALITY COUNCIL OF INDIA

Mission
To lead nationwide quality movement in India by involving all stakeholders for
emphasis on adherence to quality standards in all spheres of activities primarily
for promoting and protecting interests of the nation and its citizens.

Key Objectives
To achieve the Mission of QCI by playing a pivotal role in propagating, adoption and
adherence to quality standards in all important spheres of activities including education,
healthcare, environment protection, governance, social sectors, infrastructure sector and
such other areas of organized activities that have significant bearing in improving the
quality of life and well being of the citizens of India and without restricting its generality
shall inter-alia include:
1. To lead nationwide quality movement in the country through National Quality
Campaign aimed at creating awareness amongst citizens, empowering them to
demand quality in all spheres of activities, and promoting and protecting their well
being by encouraging manufacturers and suppliers of goods and service providers for
adoption of and adherence to quality standards and tools.
2. To develop apropos capacities at the level of Governments, Institutions and enterprises
for implementing & institutionalizing continuous quality improvement.
 QUALITY COUNCIL OF INDIA
Key Objectives
3. To develop, establish & operate National Accreditation programmes in accordance
with the relevant international standards & guides for the conformity assessment
bodies certifying products, personnel, management systems, carrying out inspection
testing, calibration & medical laboratories,  proficiency testing providers, reference
material producers & test facilities  adhering to OECD Principles of Good Laboratory
Practices and such other areas of organized activities that have significant bearing in
improving the quality of life and well being of the citizens of India.

4. To develop, establish and operate National Accreditation Programmes for various

service sectors such as education, healthcare, environment protection, governance,
social sectors, infrastructure sector, vocational training etc., to site a few, as may be
required, based on national/ international standards and guidelines and where such
standards are not available, to develop accreditation standards to support
accreditation programmes.
 QUALITY COUNCIL OF INDIA
Key Objectives
5. To build capacities in the areas of regulation, conformity assessment and
accreditation to overcome TBT/SPS constraints;
• To   establish and maintain strong linkages with international and regional fora
such as International Laboratory Accreditation Cooperation (ILAC), International
Accreditation Forum (IAF), Asia Pacific Laboratory Accreditation (APLAC), Pacific
Accreditation Cooperation (PAC), International Society for Quality in Healthcare
(ISQua), Organization for Economic Cooperation and Development (OECD) etc.
and to participate in Plenary Sessions, Committee Meeting etc. in order to keep
pace with the latest development and for promoting Multi-lateral Recognition
Arrangements/Mutual acceptance of Data and
• To undertake all the activities which promote Bi-lateral/ Multi-lateral
Recognition Arrangements between QCI/ Constituent Boards and Accreditation
Bodies in other countries.

6. To encourage development & application of third party assessment model for use in
government, regulators, organizations and society.

7. To promote quality competitiveness of India’s enterprises especially MSMEs through

adoption of and adherence to quality management standards and quality tools.
 QUALITY COUNCIL OF INDIA
Key Objectives
8. Promoting the establishment of quality improvement and benchmarking centre, as a
repository of best international / national practices and their dissemination among
the industry in all the sectors.
9. To encourage industrial / applied research and development in the field of quality
and dissemination of its result in relevant publication and trade journals;
• To Publish books, literature & periodicals and disseminate information related to
the objectives of    QCI and
• To organize / participate in trade fairs, exhibitions, seminars etc. at National &
International fora.
10. To build capacities including development of appropriate quality accreditation
mechanism for other emerging areas that have significant bearing in improving the
quality of life and well being of the citizens of India such as food sector, oil & gas,
forestry, agriculture /animal husbandry, warehouse, pharmacy etc. or as the need
may arise from time to time.
11. To facilitate effective functioning of a National Information & Enquiry Services on
standards & quality including an appeal mechanism to deal with unresolved
complaints.
12. To develop and operate an appeal mechanism to deal with unresolved complaints;
 QUALITY COUNCIL OF INDIA
The various bodies of QCI which makes Governance Structure are:
•The Governing Council (GC)
•The Governing Body (GB)
•Finance Committee (FC)
•Accreditation Boards (ABs)
•And
• Quality Promotion Board
QUALITY COUNCIL OF INDIA

Administrative Structure
 QUALITY CIRCLES

Quality Circles can be described as a small group of employees of the

same work area, doing similar work that meets voluntarily and
regularly to identify, analyse and resolve work related problems.

This small group with every member of the circle participating to the
full carries on the activities, utilising problem solving techniques to
achieve control or improvement in the work area and also help self
and mutual development in the process.

The concept of the Quality Circle is based on “respect for the human
individual” as against the traditional assumption based on suspicion
and mistrust between management and its employees.
 QUALITY CIRCLES

Quality circles built mutual trust and create greater understanding

between the management and the workers.
Cooperation and not confrontation is the key element in its
operation.
Quality Circles aims at building people, developing them, arousing
genuine interest and dedication to their work to improve quality,
productivity, cost reduction etc.
Thus we can say that a quality circle is a group of 5 to 8 employees
performing similar work, who volunteer themselves to meet
regularly, to identify the cause of their on-the-job problems, employ
advanced problem-solving techniques to reach solutions and
implement them.
The concept is based on the premise that the people who do a job
everyday know more about it than anyone else and hence their
voluntary involvement is the best way to solve their work related
problems.
 QUALITY STATEMENTS

 Three elements of quality statements are :

 a.   Vision statement,
b.    Mission statement, and 
c. Quality policy statement

Vision Statement:
1.     The vision statement  is a short declaration of what an
organization aspires to be tomorrow.
 
2.     It is the ideal state that one might want to reach; and on which
one will work hard continuously to achieve. Successful visions
provide a brief guideline for decision making.
 
3.     The vision statement should be coined in such a way that the
leaders and the employees working in the organization should work
towards the achievements of the vision statement.
 QUALITY STATEMENTS

Mission Statement:
1.     The mission statement, describes the function of the
organization. It provides a clear statement of purpose for employees,
customers, and suppliers.
 
2.     The mission statement answers the following questions : who
we are?; who are our customers? ; what we do?; and how we do it?

Quality Policy Statement: 

• The quality policy is a guide for everyone in the organization as
to how they provide products and service to the customers.
• It should be written by the Top management/CEO with feedback
from the workforce and be approved by the quality council.
•  A quality policy is a important requirement of ISO 9000 quality
systems.
A strategic plan is a document used to communicate with the
organization the organizations goals, the actions needed to achieve
those goals and all of the other critical elements developed during
the planning exercise.

Strategic planning, however, assumes that your organization must be

responsive to a dynamic, changing environment, which may call for
changes in the future. Strategic planning, then, stresses the
importance of making decisions that will ensure your organization’s
ability to successfully respond to changes in the environment.

Strategic planning is only useful if it supports strategic thinking and

leads to strategic management and, even more importantly,
execution. Strategic thinking and subsequent management must
result in action.
strategic planning does the following:
✓ Shares an organization’s vision with a large internal and external audience.
✓ Clarifies and makes the organization’s mission specific. The process is strategic
because it involves choosing how best to respond to the circumstances of the
organization’s environment.
– Nonprofits must respond to dynamic and sometimes even hostile environments.
✓ Identifies clients, consumers and stakeholders served by the organization.
✓ Identifies distinctive strengths and weaknesses of the organization.
✓ Scans the relevant environment to find emerging opportunities and threats for
an organization.
✓ Involves the key people inside and outside the organization in the planning
process.
– The process is about planning because it involves intentionally setting goals
(choosing a desired future) and developing an approach to achieving those goals.
Creates a context for making choices about possible future directions.
– The process is disciplined in that it calls for a certain order and pattern to keep
it focused and productive.
– These choices are fundamental decisions and actions that must be made to
reach a desired future. The plan ultimately is no more (and no less) than a set of
decisions about what to do, why to do it, and how to do it.
 Edwards Deming’s 14 Points for Total Quality Management
Deming’s 14 Points on Quality Management, or the Deming Model
of Quality Management, a core concept on implementing TQM, is a
set of management practices to help companies increase their
quality and productivity.

1. Create constancy of purpose for improving products and

services.
2. Adopt the new philosophy.
3. Cease dependence on inspection to achieve quality.
4. End the practice of awarding business on price alone; instead,
minimize total cost by working with a single supplier.
5. Improve constantly and forever every process for planning,
production and service.
6. Institute training on the job.
7. Adopt and institute leadership.
8. Drive out fear.
 Edwards Deming’s 14 Points for Total Quality Management
9. Break down barriers between staff areas.
10. Eliminate slogans, exhortations and targets for the workforce.
11. Eliminate numerical quotas for the workforce and numerical
goals for management.
12. Remove barriers that rob people of pride of workmanship, and
eliminate the annual rating or merit system.
13. Institute a vigorous program of education and self-improvement
for everyone.
14. Put everybody in the company to work accomplishing the
transformation.
 BARRIERS IN TQM IMPLEMENTATION

Many organizations, especially small ones with niche products, are

comfortable with their current state. They are satisfied with their
current level of performance and profits. Organizations with this
culture will see little need for TQM until they begin to lose market
share.

Awareness comes about when

(a) the organization loses market share or
(b) TQM is mandated by the customer, or
(c) management realizes that TQM is a better way to run a business
and compete in domestic and world markets.
 BARRIERS IN TQM IMPLEMENTATION
Once an organization embarks on TQM, the following are some of the
major obstacles encountered in implementation:
• Lack of management commitment: Management does not allocate
sufficient time and resources for TQM implementation. The purpose is
not clearly, consistently communicated to all personnel. Management’s
compensation is not linked to quality goals such as failure costs, customer
complaints, and cycle time reduction.
• Inability to change organizational culture: Even individuals resist change;
changing an organization’s culture is much more difficult and may require
as much as 5 years or more. Exhortations, speeches, slogans are effective
only in the short run.
• Improper planning: Absence of two-way communication of ideas during
the development of the plan and its implementation.
• Lack of continuous training and education.
• Inadequate use of empowerment and teamwork.
• Lack of employee involvement.
• Non-cooperation of first-line managers and middle management.
• Lack of clarity in vision.
• Emphasis on short-term results.
 BARRIERS IN TQM IMPLEMENTATION

• Setting of unmanageable, unrealistic goals.

• Bureaucratic system.
• TQM is considered as a quick-fix solution to current problems.
• Treating suppliers as adversaries to be manipulated, taken
advantage of Adversarial relationship between workers/unions
and management. Motivating employees through fear of
punishment.
• Failure to continually improve. Tendency to sit back and rest on
one’s laurels. Rigidly sticking to one ‘success formula’. Lack of
access to data and results. Paying inadequate attention to internal
and external customers. Ineffective measurement techniques for
key characteristics of the organization. Inability to understand the
changing needs and expectations of customers. Absence of
effective feedback mechanism.
 BARRIERS IN TQM IMPLEMENTATION

• Setting of unmanageable, unrealistic goals.

• Bureaucratic system.
• TQM is considered as a quick-fix solution to current problems.
• Treating suppliers as adversaries to be manipulated, taken
advantage of Adversarial relationship between workers/unions
and management. Motivating employees through fear of
punishment.
• Failure to continually improve. Tendency to sit back and rest on
one’s laurels. Rigidly sticking to one ‘success formula’. Lack of
access to data and results. Paying inadequate attention to internal
and external customers. Ineffective measurement techniques for
key characteristics of the organization. Inability to understand the
changing needs and expectations of customers. Absence of
effective feedback mechanism.