UNIT II

TQM
PRINCIPLE
S
Leadership - Strategic quality planning, Quality Councils
- Employee involvement - Motivation,
Empowerment, Team and Teamwork, Quality
circles
Recognition and Reward, Performance appraisal
- Continuous process improvement - PDCA cycle,
5S, Kaizen - Supplier partnership - Partnering,
Supplier selection, Supplier Rating.
Leadership
 What is leadership?

Leading people
Influencing people

Commanding people

Guiding people
 What is leadership?
Leadership is a process by which a person
influences other to accomplish an objective
and directs the organization in a way that
makes it more cohesive and coherent.
Leaders carryout this process by applying
their qualities , such as beliefs, values, ethics
, character, knowledge, and skills.
Ten principles of leadership
Be technically proficient.
Seek responsibility and take.
Make sound and timely decision.
Set the example.
Know your people and look out for their well.
Keep your workers informed.
Develop a sense of responsibility in your workers.
Ensure that tasks are understood, supervised, and
accomplished.
Train as a team.
Use the full capabilities of your organization.
 Managers vs. Leaders
•Managers •Leaders
Focus on things Focus on people
Do things right Do the right things
Plan Inspire
Organize Influence
Direct Motivate
Control Build
Follows the rules Shape entities
LEADERSHIP
ROLES
 Strategic
Planning
It sets the long term direction of the organization
in which it wants to proceed in future.
 Strategy means a direction or guide
 Strategic Planning is a process by
which
organization develop a mission, vision and
goals for its achievement.
This strategic planning established by
chief executive officer (CEO) and executive team.
Strategic planning process determines the future
of an organization.
The time period for Strategic planning is three to
ten years and short term planning is for one year.
 Strategic Planning
Process
Customers need
Customer positioning
Predict future
Gap analysis
Closing the gap
Alignment
Implementation
 Strategic
planning
 Customer needs
-The first step in strategic planning is
to identify the present and future needs of
the customer.
Also find
who are the customers?
What does the customer want?
 Customer positioning
Determine where the organization wants to be in
relation to the customers needs do they want to retain,
reduce or expand customers base?
The organization needs to concentrate its efforts on
the areas to excellence.
 Strategic
planning
Predict the future
-The planners should predict the future
conditions that will affect their products and
service.
-the forecasting tools like demographics
,economic forecasts and technique
assessments can be used to predict the future.
 Strategic
planning
Gap Analysis
-The planners should identify the gaps
between the current state and the future state
of the organization.
Closing the gap
-Develop a detailed plan to fill the gap by
establishing goals and responsibilities.
-Everyone in the organization should be in
the development plan.
 Strategic
planning
Alignment
After developing the plan, it must be
aligned with mission ,vision and core values
and concept of organizations.
Implementation
This is the final and important step.
Allocation of sufficient resources such as
financial, personal, time, computer system
support and implementation of plan should
be monitoring.
 QUALITY
COUNCIL
Itis a team to provide overall
direction for achieving the total quality
culture.
It is composed of
 CEO, Senior mangers of functional
areas such design, marketing, production and
quality etc.,
 The quality council coordinator, or consultant.
 QUALITY
OBJECTIVES
To raise the quality Consciousness in the
organization through Seminars, study tour, and
using other forms of promotion
To ensure effective functional of the organization
on the quality statement and plan
To encourage basic and applied R&D in the field
of quality and dissemination of its results to the
organization
To raise the level of personal engaged in quality
activities including the assessors and trainees.
 Duties
Develop vision statement , mission
statement and quality policy statement.
Develop the strategic long term plan with
goals and annual quality improvement
program with objectives.
Create the total education and training plan.
Evaluate and continually monitor the cost
of poor quality.
 Duties
Determine the performance measures for
the organization and monitor them
Continuously improve the processes of
customers satisfaction.
Establish work group teams at different
levels and monitor their progress.
Establish the reward and recognition system
to account the novel ideas of doing
business
 Employee
involvement
It an activity by which employee
participated work related decisions and
improvements activities.
It an approach for improving quality and
productivity
 Employee
involvement
The direct participation of staff to help an
organization fulfill its mission and meet its
objectives by applying their own ideas,
expertise, and efforts towards solving
problems and making decisions.
 Employee
involvement
Motivation
Empowerment
Teams and teamwork
Recognition and reward schemes
Performance appraisal
 Employee
Motivation
Process
of stimulating people to
accomplish decide goals.
Importance of Motivation
Improves employee involvement
Promotes job satisfaction
Reduces absenteeism
Helps to securing high level of
performance and hence enhances
efficiency and productivity
Motivation theories
Maslow’s Hierarchy theories
◦ Physiological needs
◦ Safety needs
◦ Social needs
◦ Esteem needs
◦ Self actualization needs
 ◦ X&Y
◦ X takes negative view of the people
◦ Want to avoid resposiblity
◦ Dislike work
◦ Needs to be controlled closely for effective
working
◦ Y positive views of employees
Herzberg’s two factor theory
◦ Motivation factors or satisfiers
◦ Hygiene factors
 Empowerment
Empowerment means invest people
with authority.
Its purpose is to tap the enormous reservoir
of creativity and potential contribution that
lies within every workers at all levels.
 Empowerment
It is an environment in which people have the
ability the confidence and the commitment to take
the responsibility and ownership to improve the
process and initiate the necessary steps to satisfy
the customer with well defended boundaries in
order to achieve values and goals
 Conditions
Everyone must understand the need for
change
The system needs to change for the new
paradigm
The organization must enable its
employees
Benefit
s
It builds confidence in work
Generates commitment and pride
among employees.
It gives employees better experience and
opportunity to advance their carrier
 Team and Teamwork
Team is defined as a group of people working
together to achieve common objectives or
goal.
Team works is the cumulative actions of the
team during which each member of the team
subordinates his individual interests and
opinion to fulfill the objective or goal of the
group
 Principles of team work
The team should have a clearly
defined objectives or goal.
Time schedule should be given to complete
the objectives or goal.
They should listen to the suggestion
of others.
Should maintain discipline, build team
sprit and motivate.
Every one should work hard to see the task
is completed
TYPE
S
Process improvement team
Cross functional team
Natural work team
Self directed / self motivated work teams
 Roles and Responsibilities of
team members
Team leader
Facilitator
Recorder
Time keeper
Member
Barriers to Team progress
Insufficienttraining
Incompatible rewards and compensation
Lack of planning
Lack of management support
Lack of union support
Lack of access to information system
 Recognition and Reward
Recognition is the form employee
of
motivation in which publically
acknowledges
the positive contribution in individual
team has or the
made to
organization. success
Reward is something tangibleof such as theater
tickets, dinners, or tour or a cash award to
promote desirable behavior.
 Reason to Recognition
• Improve employee morale.
• Show the company’s appreciation for
better performance
• Create satisfied workplace
• Create highly motivated workers
• Reinforcement behavioral patterns.
• Stimulate creative efforts
Types of Rewards
Intrinsic rewards
These are related to feeling of
accomplishment or self worth.
Extrinsic rewards
These are related to pay or compensation
 Performance appraisal

Performance appraisal is a systematic

of anand
individual.
objectives assessment or evaluation of
performance and contribution
It is an exceedingly difficult HRM activity.
 Purpose of Performance appraisal
To provide feedback to employees for
recognition and to build on the strength and
overcome their weakness.
To determine salary increases.
To identify people for promotion
To deal with human resources legalities.
Process of performance appraisal
 Benefit
s
Useful feedback tool to take corrective
measure to improve performance in future.
Helps to determining the pay adjustments,
increments, and bonuses as it rates the
merit of the employee.
It helps the employee to plan their career.
It helps in evaluating the staffing or
personal development procedures and
provides feedback on their strengths and
weaknesses
 DEFINITIO
N
Quality Circle is a small group of 6 to 12 employees
doing similar work who voluntarily meet together
on a regular basis to identify improvements in their
respective work areas using various techniques for
analyzing and solving work related problems
coming in the way of achieving and sustaining
excellence leading to mutual upliftment of
employees as well as the organization.
It is "a way of capturing the creative and innovative
power that lies within the work force“
 Characteristics of Quality Circle
Quality circle are small primary groups of employee
whose lower limit is three and upper limit twelve.
The membership of quality circle is most
voluntary .
Each circle is lead by area supervisor .
The member meet regularly every week or according
to an agreed schedule.
The circle members are specially trained in
techniques of analysis and problem
solving.
The basic role of circles to identify and solve work
related problems for improving quality and
productivity.
 CONCEPT
It is based upon the human resource management considered
as one of the key factors in the improvement
of product quality & productivity.

Quality Circle concept has three major attributes:

1. Quality Circle is a form of participation management.

2. Quality Circle is a human resource development
technique.
3. Quality Circle is a problem solving technique.
 OBJECTIV
E
The objectives of Quality Circles are
multi-
faced.
a) Change in Attitude.
From "I don’t care" to "I do care"
b) Self Development
Bring out ‘Hidden Potential’ of people
People get to learn additional skills.
c) Development of Team Spirit
Eliminate inter departmental
conflicts.
d)Improved Organizational Culture
Positive working environment.
 How Do Quality Circles Work?
Allmembers of a Circle need to receive training
Members need to be empowered
Members need to have the support of Senior
Management
Characteristics
◦ Volunteers
◦ Set Rules and Priorities
◦ Decisions made by Agreement
◦ Use of organized approaches to Problem-
Solving
 Operational
Definition
Continuous Process Improvement
A comprehensive philosophy of operations
that is built around the concept that there are
always ways in which a process can be
improved to better meet the needs of the
customer and that an organization should
constantly strive to make those
improvements.
 Continuous Process Improvement
FEEDBACK


PROCESS
INPUT People OUTPUT
Equipment Information OUT
Materials
Money Method Data
Environment Product COMES
Data,etc.
Materials Service,etc.
Procedures

CONDITIONS
Five ways to Improve a Process

Reduce resources
Reduce errors
Meet or exceed expectations
of internal/external customers
Make the process safer
Make the process more
satisfying to the person doing it.
 Continuous Process Improvement
Juran
Trilolgy
PDSA
Cycle
5S
kaizen
 Joseph M. Juran: On
Quality
Quality is “fitness for use”
Balance between product features and products
free from deficiencies
Features must meet customer expectations
Absence of deficiency is as essential as desired
features in producing customer satisfaction
So the ultimate test of quality is fitness for use
by customers as reflected by customer
satisfaction
 Juran:The Trilogy of
Quality
Management
Quality Planning
◦ developing a process to achieve goals
involving customer satisfaction
Quality Control
◦ holding onto gains, controlling , variation,
preventing waste
Quality Improvement
◦ lowering cost of poor quality achieving innovation in
performance
 Quality
Planning
◦ Establishing quality goals
◦ Identify the customers
◦ Discover customer need
◦ Develop product features
◦ Develop process features
◦ Establish process controls , transfer to operation
Quality Control
– Choose control subjects
– Choose units of measure
– Set goals
– Create a sensor
– Measure actual performance
– Interpret the difference
– Take action on the difference
 Quality improvement
◦ Prove the need
◦ Identify projects
◦ Organize project teams
◦ Diagnose the causes
◦ Provide remedies , prove that the remedies are effective
◦ Deal with resistance to change
◦ Control hole the gains
54
 PDSA
CYCLE
 Continuous Process Improvement Cycle

Phase 1

Identify the

opportunit
y
Future
ACT
PLAN Phase 2 Analyze the
Process
Phase 3 Develop the
Phase 7Plan for the Optimal Solution
Phase 6 Standardize STUDY DO
the Solution

Phase 5 Study the Phase 4

Results Implementation
56
Continuous Process Improvement Cycle

Identify the opportunity

 List out the problem
 Form a team
 Define the scope
Analyze the Process
 Define the process boundaries
 Define the target performance measure
 Collect the necessary data
 Identify the causes and root causes
Continuous Process Improvement Cycle

Develop the Optimal Solution

 Establish potential and feasible
solutions
 Recommending the best solution
Implementation
 Prepare the implementation plan
 Obtain approval
 Start the implementation
 Monitoring activity
Continuous Process Improvement Cycle

Study the Results

 Monitoring and evaluating the change
Standardize the Solution
◦ If assures the improvement variable and kept under
control
◦ Operator trained to know what to do and how to do
(practice process)
 Plan for the future
 The Deming Cycle or
PDCA Cycle
PLAN
Plan a change to the process. Predict the
effect this change will have and plan how
the effects will be measured
ACT DO
Adopt the change as a Implement the change on
permanent modification a small scale and
to the process, or measure the effects
abandon it.
CHECK
Study the results to
learn what effect the
change had, if any. 60
 Kaoru Ishikawa has
expanded Deming's
four steps into six:
 Determine goals and targets.
 Determine methods of reaching goals.
 Engage in education and training.
 Implement work.
 Check the effects of implementation.
 Take appropriate action.

61
 5S
• 5S is a workplace organization technique
• It is a way to involve associates in the ownership of their workspace
• It helps create and maintain the efficiency and effectiveness of a
work area

5S is a common starting point for Lean activities in a compan

 What’s it for?
• It is a way to create:
• Cleaner work areas
• More organization
• Safer working conditions
• Less wasted time
• Efficient work processes and practices
• More available space
 5S

Ultimate Goal Better Tomorrow for Everyone

Intermediate Effective Use Resources

Goal Efficiency Improvement
Economic Operation

J T
Approach T T
I Q
& Method P Q
T C
M M

Foundation 5S

5 S FOUNDATION FOR PRODUCTIVITY IMPROVEMENT

65
 The Five S’s
• SEIRI (Sorting) – separating the needed from the not-needed
• SEITON (Simplifying) – a place for everything and everything in its
place, clean and ready to use
• SEISO (Systematic Cleaning or Sweeping) – cleaning for inspection
• SEIKESU (Standardizing) – developing common methods for
consistency
• SHITSUKE(Sustaining) – holding the gains and improving
 The First S - Sorting
Separating the Needed from the Not-
Needed
• Eliminate not-needed items and
perform an initial cleaning
• Establish criteria/handling of items
• Identify not-needed items
• Move not-needed items to holding
area
• Conduct a white-elephant sale
• Conduct an initial cleaning
 The Second S - Simplifying
A place for everything and everything in
its place, clean and ready to use
• Arrange workplace for safety and
efficiency
• Identify key equipment and supplies
• Determine location for each item
• Outline locations and zones
• Develop shadow boards, label items
• Document layout, equipment, supplies
 The Third S – Systematic Cleaning

Cleaning for Inspection

• Perform daily cleaning and inspection to
understand work conditions

• Identify points to check for performance

• Determine acceptable performance
• Determine visual indicators/controls
• Mark equipment/controls
• Conduct daily cleaning/inspections
 The Fourth S - Standardizing

Developing Common Methods for

Consistency
• Make abnormal conditions noticeable
and document agreements
• Document agreements and checks
• Establish/document standard methods
across similar work areas
• Document new standard methods
 The Fifth S - Sustaining
Holding the Gains and Improving
• Maintain the gains from other 5S
activities and improve

• Determine 5S Level of Achievement

• Perform routine checks
• Analyze results of routine checks
• Measure progress and plan for continuous
improvement
 BENEFITS OF 5S

• Work place becomes clean and better

organized. It become a proud place to work
• Results in good company image and
generates more business
• Shop floor and office operations become
easier and safer
• People become disciplined
• Contributes to productivity , quality and
employee morale
What’s an example?
What’s an example?
Before After
What’s an example?
What’s an example?
 Introduction
• Masaaki Imai is known as the developer
• of KAIZEN.

• ‘KAI’ means ‘Change or the action to correct’.

• ‘ZEN’ means ‘Good’.

• Kaizen is small incremental changes made for

improving productivity and minimizing wastes.

77
 3 Main Principles of KAIZEN
1. Consider the process and the results.

2. The need to look at the entire process of

the job at hand and to evaluate the job as
to the best way to get the job done.

3. Kaizen must be approached in such a way

that no one is blamed and that best
process is put into place.
78
 Features Of Kaizen
• Widely applicable.

• Highly effective and result oriented.

• A learning experience.

• Team based and cross-functional.

79
 Phases in Kaizen
A. Select an event.

B. Plan an event.

C. Implement an event.

D. Follow-up an event.

80
 Kaizen implementation
A. Top management must be committed
B. Executives just below the top management
must formulate and carry out kaizen goals
C. Supervisor , like every one must use kaizen in
their activities.
D. Worker must be involved in kaizen through the
suggestion systems and small group activities.

81
 Benefits Of Kaizen
• Kaizen reduces waste - like inventory waste,
time waste and workers motion.

• Kaizen improves space utilization and product

quality.

• Results in higher employee moral and job

satisfaction.

• Teaches workers how to solve

everyday problems.

84
supplier partership
two or more organization is a long term commitment between
them.
1.Long-term commitmen2.trust
3.shared vision
sourcing
sole-patent,raw material location
mulitiple-price,quality,delievery
single
Supplier selection
understand the management philosophy of the system
should not breach corporate secrets
sincere in contract provisions
supply parts as per the specification standard
should have record about customer satisfaction and organization
credibility


Benefits
improved quality
increased productivity
reduced cost
increased market share
Supplier rating
used to obtain over all rating of supplier performance
based on
quality-history
price-quality, negotiation
performance-delivery ,technical assistance
production capability-mfg equipment