Chapter 2

Leadership and
Strategic Quality
Management

POORNIMA M CHARANTIMATH Copyright © 2022 Pearson India Education Services Pvt. Ltd. All Rights Reserved
Learning Objectives
1. Explain Characteristics and Role of TQM Leaders
2. Describe the Quality Guru’s Contribution to TQM
3. Explain Quality Statements and Quality Culture
4. Understand Strategic Quality Management
5. Discuss Balanced Score Card

POORNIMA M CHARANTIMATH 2
 Defining Leadership
1. Leadership is the capacity to translate vision into reality —Warren Bennis
2. Leadership is the only thing that differentiates successful organisations from others over
the long run - Stephen Haines
3. Leadership is the result of communicating value in people so clearly that they come see it
in themselves - Stephen R. Covey
4. Leadership is all about the courage to dream big —N. R. Narayana Murthy
5. Invisible leadership is exercising the vision to change the traditional role from commander
to coach, from manager to mentor, from director to delegator and from one who demands
respect to one who facilitates self-respect—A. P. J. Abdul Kalam

POORNIMA M CHARANTIMATH 3
Quality Leadership
The five primary traits of a successful leaders are:
1. Leaders Create Vision
2. Leaders Build Teams
3. Leaders Are Role Models
4. Leaders Take Decisions
5. Leaders Inspire

POORNIMA M CHARANTIMATH 4
Leadership Functions
Transactional Functions
Policy Making, Planning, Developing Systems, Monitoring Performance,
Coordinating, Rewarding, Coaching

Transformational Functions
Creating and Modelling Vision, Setting Standards, Building Culture and Climate,
Boundary Management, Synergising, Searching and Nurturing Talent

POORNIMA M CHARANTIMATH 5
Visionary Leadership

Venu Srinivasan
TVS Group

POORNIMA M CHARANTIMATH 6
Six Natural Levels of Leadership Competencies

POORNIMA M CHARANTIMATH 7
Quality Guru’s
1. Walter Shewhart
2. W. Edwards Deming
3. Joseph Juran
4. Armand Feigenbaum
5. Philip Crosby
6. Kaoru Ishikawa
7. Genichi Taguchi
8. Shingo Shigeo
9. Masaaki Imai

POORNIMA M CHARANTIMATH 8
Walter Shewhart (1891-1967)
1. Founder of Modern Quality Movement
2. He is often Referred To “Grand Father of Quality Control”
3. An Innovator in The Application of Statistics to Quality
4. He was a Statistician at Bell Laboratories
5. Authored books on: Economic Control of Quality Management Product (1931),
Statistical Method from the View Point of Quality Control (1939)
6. Developed Quality Control Charts for SPC
7. Developed Shewhart Cycle (PDSA Cycle)

POORNIMA M CHARANTIMATH 9
W Edwards Deming (1900-1993)
1. Father of quality Control
2. The Highest Quality award in Japan, the Deming Prize is named in his Honour
3. He Developed Deming cycle (PDCA Cycle)
4. His Contributions: Fourteen Principles of Transformation, Deming Chain
Reaction, The System of Profound Knowledge
5. He Identified Seven Deadly Diseases of Management
6. Author of Book on Out of the Crisis (1989)

POORNIMA M CHARANTIMATH 10
PDCA Cycle
The Deming Cycle

POORNIMA M CHARANTIMATH 11
Ramp of Improvement

POORNIMA M CHARANTIMATH 12
POORNIMA M CHARANTIMATH 13
Deming’s Seven Deadly Diseases of Management
1. Lack of Constancy of Purpose
2. Emphasis on Short-term Profits
3. Overreliance on Performance Appraisals
4. Mobility of Management
5. Overemphasis on Visible Figures
6. Excessive Medical Costs for Employee Healthcare
7. Excessive Costs of Warranty and Legal Costs

POORNIMA M CHARANTIMATH 14
POORNIMA M CHARANTIMATH 15
The System of Profound Knowledge
1. Appreciation of the System (understanding the various processes of the
business)
2. Knowledge of Variation (understanding how and why quality may vary within
the business)
3. Theory of Knowledge (understanding how your workers act and think based
on what they believe to be true)
4. Psychology (understanding the concept of human nature that instructs your
workers’ beliefs and motivations)

POORNIMA M CHARANTIMATH 16
 Deming’s Red Bead Experiment
1. The experiment involves using a paddle to draw small white and red colored beads from a
large bowl.
2. The white beads represent the good aspects or acceptable products, while the red beads
represent the problems or defective products experienced in the work day.
3. Each draw of the paddle get 50 beads, which has a combination of the red and white beads
and do this several times.
4. Each time you pick up a paddle full of beads, the number of white and red beads will
always be different.
5. The red bead experiment is a useful tool to facilitate the discussion of addressing problems
at work.
6. It also highlights the interactive role between management and workers that involves trust
in order to solve problems.
POORNIMA M CHARANTIMATH 17
Deming’s Red Bead Experiment –Few Important Lessons
1. Each day at work, you experience variation, as represented by the different
number of red and white beads that changes with each paddle draw.
2. You cannot control all the problems at work – many of those problems are
created by the system.
3. The success and limitations of a worker is related to the working system.
4. Management has to improve the system to address the problems (red beads)
found every day.
5. Management should create an environment where workers can voice their
concerns and assist with system improvements.

POORNIMA M CHARANTIMATH 18
Joseph Juran (1904-2008)
1. Editor of the Quality Control Handbook (1951)
2. Developed the idea of Quality Trilogy
3. Quality Trilogy – Quality Planning, Quality Control and Quality improvement
4. He Developed the Concept of Cost of Quality
5. Introduced the Juran’s Formula: Ten Steps to Quality Improvement
6. He Defined Quality as “Fitness for Use”

POORNIMA M CHARANTIMATH 19
Jurans’s Quality Trilogy

POORNIMA M CHARANTIMATH 20
 Juran’s Formula
1. Build an awareness regarding the need and offer an opportunity for improvement
2. Set goals for improvements
3. Organize paths to reach the goals (establish a quality council, identify problems, select
projects, appoint teams, designate facilitators, etc.)
4. Provide training
5. Carry out projects to solve problems
6. Report progress
7. Give recognition
8. Communicate results
9. Keep score
10.Maintain momentum by making annual improvements part of the regular systems and
processes of the company.

POORNIMA M CHARANTIMATH 21
Armand Feigenbaum
1. Author of book on Quality Control: Principles, Practice and Administration
(1961)
2. Introduced the Concept of Total Quality Control is also called as Company
Wide Quality Control
3. Classified Quality Costs into Cost of Prevention, Appraisal, Internal and
External failure costs.
4. Introduced Three Steps to Quality: Quality leadership, Modern quality
Technology and Organisational Commitment

POORNIMA M CHARANTIMATH 22
 Philip Crosby (1926-2001)
1. Published a Book on Quality is Free (1979)
2. Introduced Fourteen Steps Quality Programme
3. Established Four Absolutes of Quality Management
i. The Definition: Quality is Conformance to Requirements, not Goodness
ii. The System: Prevention, not Appraisal
iii. The Performance Standard: Zero Defects
iv. The Measurement: The Price of Non-conformance to Requirements, not
Quality Indices

POORNIMA M CHARANTIMATH 23
Crosby’s 14 Steps
1. Management Commitment
2. Quality Improvement Team
3. Quality Measurement
4. Cost of Quality
5. Quality Awareness
6. Corrective Action
7. Zero Defects planning

POORNIMA M CHARANTIMATH 24
Crosby’s 14 Steps
8. Supervisor Training
9. Zero Defects Day
10. Goal Setting
11. Error-Cause Removal
12. Recognition
13. Quality Councils
14. Do It Over Again

POORNIMA M CHARANTIMATH 25
Kaoru Ishikawa (1915-1989)
1. He is Known as the “Father of Quality Circles”
2. He Advocated CWQC, Seven Quality Tools and Quality Circles
3. He is the Author of Book on “What is Total Quality Control”
4. He Developed One of the Seven Quality Control tools - Ishikawa Diagram

POORNIMA M CHARANTIMATH 26
 Key Elements of Ishikawa’s Philosophy

1. Quality begins with education and ends with education

2. The first step in quality is to know the customers’ requirements
3. The ideal state of quality control occurs when inspection is no longer
necessary
4. Remove the root cause, not the symptoms
5. Quality control is the responsibility of all workers and all divisions
6. Do not confuse means with the objectives

POORNIMA M CHARANTIMATH
27
Key Elements of Ishikawa’s Philosophy

7. Put quality first and set your sights on long-term profits

8. Market is the entrance and exit of quality
9. Top management must not show anger when facts are
presented by subordinates
10.Ninety-five per cent of problems in a company can be solved
with simple tools for analysis and problem solving
11.Data without dispersion information (variability) are false data

POORNIMA M CHARANTIMATH
28
Genichi Taguchi
1. He Applied Concept of DOE to Product Design

2. He Developed Prototyping Method

3. He Introduced Eight Steps of Parameter Design

4. Developed Taguchi’s Quality Loss Function

POORNIMA M CHARANTIMATH 29
1. Identify the main functions, side effects and failure modes.
2. Identify noise factors and the testing conditions for evaluating
loss of quality.
3. Identify the quality characteristics to be observed and the
objective functions to be optimized.
4. Identify the control factors and their alternate levels.
5. Design the matrix experiment and define the data analysis
procedure.
6. Conduct the matrix.
7. Analyse the data, determine optimum levels for the control
factors and predict performance under these levels.
8. Conduct the verification experiment and plan future actions.
Taguchi’s Approach
30
Five Primary Tools of Robust Design
1. Parameter Diagram
2. Ideal Function
3. Quadratic or Quality Loss Function
4. Signal-to-Noise Ratio
5. Design of Experiments or Design Optimisation (Orthogonal Arrays)

POORNIMA M CHARANTIMATH 31
Taguchi’s Quality Loss Function

POORNIMA M CHARANTIMATH 32
Shingo Shigeo (1909-1990)
1. Key Teachings: JIT, SMED, ZQC

2. He Has Been Described As An “Engineering Genius”

3. The Shingo Prize for Operational Excellence is Established to Promote World

Class Manufacturing

POORNIMA M CHARANTIMATH 33
 Masaaki Imai
1. Promoted the Concept of KAIZEN
2. Established Kaizen Institutes all over the world
3. Author of books on:
i. Kaizen:The Key to Japan’s Competitive Success
ii. Gemba Kaizen
iii. 16 Ways to Avoid Saying No,
iv. Never Take Yes For An Answer

POORNIMA M CHARANTIMATH 34
Contributions of Quality Gurus

POORNIMA M CHARANTIMATH 35
 Quality Culture
Quality Culture Refers to an Incorporation of Quality in the Overall System of an

Organization Leading to a Positive Internal Environment and the Creation of
Delighted Customers.
The five stages of quality culture are:

i. Dormant Stage
ii. Awakening Stage
iii. Groping Stage
iv. Action Stage
v. Maturity Stage

POORNIMA M CHARANTIMATH 36
Building Quality Culture
1. Initiate Quality
2. Commitment to Quality
3. Build Capabilities and Maturity
4. Motivate
5. Institutionalize Quality
6. Create Focus Groups
7. Use Automated Tools

POORNIMA M CHARANTIMATH 37
Strategic Quality Management
Strategy is the Game plan or the Course of Action that Moves a Business in the
Desired Direction
The Concept of SQM includes Strategic Planning, Strategy Development and
Strategy Deployment
SQM is Developed, Deployed and Led by the Top Management.
Quality Statements Include: Vision, Mission, Values and Quality Policy
Hoshin Kari is The Japanese SQM Model

POORNIMA M CHARANTIMATH 38
The Strategy Process

POORNIMA M CHARANTIMATH 39
Five Phases of
SQM

POORNIMA M CHARANTIMATH 40
Managing Strategic Change

POORNIMA M CHARANTIMATH 41
Balanced Score Card

POORNIMA M CHARANTIMATH 42
 Benefits of Balanced Score Card
1. Translation of Strategy into Measurable Parameters
2. Communication of the Strategy to Everybody in the Firm
3. Alignment of Individual Goals with the Firm’s Strategic Objectives
4. Feedback of Implementation Results to the Strategic Planning Process

POORNIMA M CHARANTIMATH 43
Copyright © 2022 Pearson India Education Services Pvt. Ltd.

This book is sold subject to the condition that it shall not, by way of trade or otherwise, be lent,
resold, hired out, or otherwise circulated without the publisher’s prior written consent in any form
of binding or cover other than that in which it is published and without a similar condition including
this condition being imposed on the subsequent purchaser and without limiting the rights under
copyright reserved above, no part of this publication may be reproduced, stored in or introduced
into a retrieval system, or transmitted in any form or by any means (electronic, mechanical,
photocopying, recording or otherwise), without the prior written permission of both the copyright
owner and the publisher of this book.

ISBN 978-93-544-9120-7

44