UNIT II – TQM PRINCIPLES

Leadership – Strategic quality planning, Quality Councils - Employee

involvement – Motivation, Empowerment, Team and Team work, Quality
Circles - Recognition and Reward, Performance appraisal – Continuous process
improvement – PDCA cycle, 5S, Kaizen – Supplier partnership – Partnering
supplier selection – Supplier rating.

LEADERSHIP
A leader is one who instills purposes, not one who controls by brute force. He
strengthens and inspires the followers to accomplish shared goals.
Leaders
Shape the Organization’s value
Promote the Organization’s value
Protect the Organization’s value and
Exemplifies the Organization values
The process of influencing others towards the accomplishment of goals. He
triggers tile will to do, shows the direction and guide the group members towards
the accomplishment of goals.

CHARACTERISTICS OF QUALITY LEADERS :

1. They give priority attention to external and internal customers and their needs.
2. They empower, rather than control, subordinates.
3. They emphasis improvement rather than maintenance.
4. They emphasis prevention.
5. They emphasis collaboration rather than competition.
6. They train and coach, rather than direct and supervise.
7. They learn from the problems.
8. They continually try to improve communications.
9. They continually demonstrate their commitment to quality.
10.They choose suppliers on the basis of quality, not price.
11.They establish organizational systems to support the quality effort.
12.They encourage and recognize team effort.

LEADERSHIP CONCEPTS :
A leader should have the following concepts
1. People, Paradoxically, need security and independence at the same time.
2. People are sensitive to external and punishments and yet are also strongly
self - motivated.
3. People like to hear a kind word of praise. Catch people doing something right,
so you can pat them on the back.
4. People can process only a few facts at a time; thus, a leader needs to keep
things simple.
5. People trust their gut reaction more than statistical data.
6. People distrust a leader’s rhetoric if the words are inconsistent with the
leader’s actions.

THE 7 HABITS OF HIGHLY EFFECTIVE PEOPLE :

1. Be Proactive
2. Begin with the End in mind
3. Put First Things First
4. ThinkWin –Win
5. Seek First to Understand, then to Be Understood
6. Synergy
7. Sharpen the Saw (Renewal)
LEADERSHIP ROLES

ROLE OF SENIOR MANAGEMENT

1. Management byWandering Around (MBWA).
2. Strategy of problem solving and decision making.
3. Strong information base.
4. Recognition and Reward system.
5. Spending most of the time on Quality.
6. Communication.
7. Identify and encourage potential employee.
8. Accept the responsibility.
9. To play a role model.
10.Remove road blocks.
11.Study TQM and investigate how TQM is implemented elsewhere.
12.Establish policies related to TQM.
13.Establish ‘priority of quality’ and ‘customer satisfaction’ as the basic policy.
14.Assume leadership in bringing about a cultural change.
15.Check whether the quality improvement programmes are conducted as planned.
16.Become coaches and cheer leaders to implement TQM.
17.Generate enthusiasm for TQM activities.
18.Visit other companies to observe TQM functioning.
19.Attend TQM training programme.
20.Teach others for the betterment of society and the surroundings.

STRATEGIC PLANNING
It sets the long term direction of the organization in which it wants to proceed in
future. Can be defined "As the process of deciding on objectives of the organization,
on changes on this objective, on the resource used to obtain these objectives and on
the policies that are to govern the acquisition use and disposition of these resources"

STRATEGIC QUALITY PLANNING

Goals – Long term planning (Eg : Win the war)
Objectives – Short term planning (Eg : Capture the bridge)
Goals should
Improve customer satisfaction, employee satisfaction and process
Be based on statistical evidence
Be measurable
Have a plan or method for its achievement
Have a time frame for achieving the goal
Finally, it should be challenging yet achievable

SEVEN STEPS TO STRATEGIC QUALITY PLANNING :

1. Customer needs
2. Customer positioning
3. Predict the future
4. Gap analysis
5. Closing the gap
6. Alignment
7. Implementation
EMPLOYEE INVOLVEMENT
It is the total involvement from every person at all levels in the organization
ASPECTS OF EMPLOYEE INVOLVEMENT
1. Employee motivation
2. Employee Empowerment
3. Teams and Team work
4. Recognition and Reward Schemes
5. Performance Appraisal
1. EMPLOYEE MOTIVATION
It is the process of stimulating people or attempting to influence other to do your
will or accomplish desire goals through the possibility of reward
· Improves employee involvement
· Reduces absenteeism and increases turn over
· Promotes job satisfaction

THEORIES OF MOTIVATION
HERZBERG’S TWO FACTOR THEORY
1. Motivation Factor: People are motivated by recognition, responsibility,
achievement, advancement and the work itself. These are called as motivators
2. Dissatisfies or Hygiene Factor: Low salary, minimal fringe benefits, poor working
conditions, ill defined organizational policy, mediocre technical supervision are
dissatisfies which implies they are preventable.

EMPLOYEE WANTS
1. Good pay factor is normally in the middle of ranking.
2. Normal Wants are interesting work, appreciation, involvement job security, Good
pay, Promotion/growth, Good working conditions, Loyalty to employees, Help with
personal problems arid Tactful Discipline.
ACHIEVING A MOTIVATED WORK FORCE BY THE MANAGERS
Know thyself, Know employees, Establish a positive attitude, Share the goal, Monitor
progress, Develop interesting work by job rotation, job enlargement(Horizontal) and
job enrichment (Vertical), Communicate effectively, Celebrate success.

EMPLOYEE EMPOWERMENT
It is an environment in which people have the ability, the confidence and the
commitment to take his responsibility and ownership to improve the process and
initiate the necessary steps to satisfy customer requirements within well-defined
boundaries in order to achieve organizational values and goals.

Job Enrichment: Is expanding content of the Job.

Job Empowerment: Is expanding the context of the job.

GENERAL PRINCIPLES OR CHARACTERISTICS FOR' EMPOWERING

EMPLOYEES
1. Tell people what their responsibilities are.
2. Given the authority equal to the responsibility assigned to them.
3. Set standards of excellence.
4. Give them knowledge information and feed back.
5. Trust them and treat them with dignity and respect.

CONDITIONS TO CREATE THE EMPOWERED ENVIRONMENT

1. Every one should under stand the need to change
2. The system need to change to new paradigm.
3. The organization must provide information, education, and skill to its
employees.
TEAMS AND TEAM WORKS
A team can be defined as a group of people working together to achieve
common objectives or goals. Team work is the cumulative actions of the team during
which each member of the team subordinates his individual interest and opinions for
the fulfilling of objectives of the group.

BENEFITS OF TEAM WORK

Improved solutions to quality problems, ownership of solutions, communication
and integration
Objectives – Short Term Planning
Goal – Long Term Planning

TYPES OF TEAMS
Process improvement team:
Involved in improvement of sub processes or processes.
Usually has 6-10 members. Disbanded when the objective is reached. May include
the local supplied and customer depending on the location
Cross functional teams:
6-10 members temporary team. Members are Top management level from various
functional areas of management. Discuss complex problems and break down into
smaller parts to refer it to various departmental teams for further solution.
Natural work teams:
Not voluntary and the total work unit is part of the team. Manager also a part of the
team and the management selects the projects to be improved. Managers must also
ensure that the entire team is comfortable with each other.
Self directed / self managed work team:
Extension of natural work teams but here the group of individuals is empowered not
only to do work but manage it. No manger will present but a coordinator (Which will
be normally rotated among members) will be appointed. Additional responsibilities of
the team hiring/ dismissal, performance evaluation, customer relations, supplier
relations, recognition/rewards and training.

CHARACTERISTICS OF SUCCESSFUL TEAMS

1. Sponsor: In order to have effective liaison with quality council, there should be
sponsor. The sponsor is a person from the quality council, he is to provide support to
the organization
2. Team Charter: A team charter is a document that defines the team’s mission
boundaries, the background of the problem, the team’s authority and duties and
resources. It also identifies the members and their assigned roles – leader, recorder,
time keeper and facilitator.
3. Team Composition: Not exceeding 10 members except natural work team and self
managed teams.
4. Training: The team members should be trained in the problem solving techniques
team dynamics and communication skills
5. Ground Rules: The team should have separate rules of operation and conduct.
Ground rules should be discussed with the members, whenever needed it should be
reviewed and revised
6. Clear objectives, Accountability : Periodic status report should be submitted to
quality council for review
7. Well defined decision procedure, Resources: Adequate information should be
provided
8. Trust by the management, Effective problems solving: Not by hunches or quick
fires
9. Open communication, Appropriate Leadership, Balanced participation and
Cohesiveness

TEAM MEMBER ROLE

Leader, Facilitator (One who helps the team gets started in the stages), Recorder,
Time keeper and Team member.
DECISION MAKING METHODS
Non decision, Unilateral decision, Handclasp decision (Two members with a good
idea of the subject decide), Minority-rule decision, Majority rule decision, Consensus
(Not everyone need to accept, But every one should be willing to implement)

ELEMENTS OF EFFECTIVE TEAM WORK

Regular scheduling with a fixed time limit, purpose, role and responsibilities,
activities, decision, results and recognition.

TEAM MANAGEMENT WHEEL

To make a lean more effective a team management wheel has been evolved. The
activities are advising, innovating, promoting, developing, organization, producing,
inspecting, maintaining and linking. The roles of wheel are advisor, explore,
organizer and controller.

STAGES OF TEAM DEVELOPMENT

Forming stage- Initial stage with only group of individuals and no team work. Team
purpose, roles are created.
Storming Stage -Initial agreement roles are challenged. Hostilities, emerge which
may be resolved
Norming Stage-Formal informal relations get established.
Performing Stage -Team operates in a successful manner with trust, openness,
healthy conflict and decisiveness among the members.
Maintenance stage – Functioning should not deteriorate with time Q
Evaluating Stage – Evaluating team performance

TEN COMMON PEOPLE PROBLEMS

Floundering, overbearing participants, Dominating participants, reluctant
participants, unquestioned acceptance of opinions as facts, rush to accomplish,
Attribution, Discounts and plops, Wanderlust, Feuding team members.
BARRIERS TO TEAM PROGRESS
Insufficient training, Incompatible rewards and compensation, First-line supervisor
resistance, Lack of planning; Lack of management support, Access to information
systems, Lack of union support, Project scope too large, Project objectives are not
significant, No clear measures of success and No time to do improvement work.

RECOGNITION AND REWARD

Recognition is a process whereby management shows acknowledgement (Verbal or
written) of an employee outstanding performance. Recognition is a form of employee
+ve motivation.
Reward is a tangible one such as increased salaries, commission, cash bonus, gain
sharing etc., to promote desirable behavior. It can be even theatre tickets, dinner for
two, a small cash awards, etc.,
The employees are recognized to improve their morale, show the company's
appreciation for Better Performance, create satisfied and motivated workplace and
stimulate creative efforts.
Various ways for Recognition and Rewards are
1. Recognition can be expressed using verbal and written praise.
2. Rewards may be in the form of certificates and plaques.
3. Reward is normally in the form of cinema tickets, dinner for family etc.
4. The financial compensation (for recognition) can be paid in terms of increased
salaries, commissions, gain sharing etc.
5. The efforts of employees can be recognized by promotions, special job
assignments etc.
6. A letter of appreciation from the CEO or the Top Management will increase the
employee’s involvement.
7. Reward may be delayed but recognition should be in a timely basis.
8. Rewards should be appropriate to the improvement level.
9. People like to be recognized than any reward.
10.Special forms of recognition include pictures on the bulletin board, articles in
news letters, letter to families etc.
11.Supervisors can give on-the-spot praise for a job which is done well.

EFFECTS OF RECOGNITION AND REWARD SYSTEM :

1. Recognition and reward go together for letting people know that they are valuable
members for the organization.
2. Employee involvement can be achieved by recognition and reward system.
3. Recognition and reward system reveals that the organization considers quality
and productivity as important.
4. It provides the organization an opportunity to thank high achievers.
5. It provides employees a specific goal to achieve.
6. It motivates employees to improve the process.
7. It increases the morale of the workers.
PERFORMANCE APPRAISAL
The performance appraisal is used to let employees know how they are performing.
The performance appraisal becomes a basis for promotions, increase in salaries,
counseling and other purposes related to an employee’s future.

IMPORTANCE OF PERFORMANCE APPRAISALS :

1. It is necessary to prevail a good relationship between the employee and the
appraiser.
2. Employee should be informed about how they are performing on a continuous
basis, not just at appraisal time.
3. The appraisal should highlight strength and weakness and how to improve the
performance.
4. Employee should be allowed to comment on the evaluation and protest if
necessary.
5. Everyone should understand that the purpose of performance appraisal is to
have employee involvement.
6. Errors in performance evaluations should be avoided.
7. Unfair and biased evaluation will render poor rating and hence should be
eliminated.

BENEFITS OF EMPLOYEE INVOLVEMENT :

Employee involvement improves quality and increases productivity because
Employees make better decisions using their expert knowledge of the process
Employees are better able to spot and pin-point areas for improvement.
Employees are better able to take immediate corrective action.
Employee involvement reduces labour / management friction.
Employee involvement increases morale.
Employees have an increased commitment to goals because they are
involved.

CONTINUOUS PROCESS IMPROVEMENT

Continuous process improvement is designed to utilize the resources of the
organization to achieve a quality-driven culture.
Improvement is made by
Viewing all work as process.
Making all process effective, efficient and adaptable.
Anticipating changing customer needs.
Controlling in-process performance using measures such as scrap reduction,
control charts etc.
Eliminating waste and re-work.
Eliminating non-value added activities.
Eliminating non-conformities.
Using Benchmarking.
Incorporating learned lessons into future activities.
Using technical tools such as SPC, benchmarking, experimental design, QFD
etc.
PROCESS :
Process refers to business and production activities of an organization.

There are five basic ways for improvement.

Reduce resources.
Reduce errors.
Meet or exceed expectations of downstream customers.
Make the process safer.
Make the process more satisfying to the person doing it.

THE JURAN TRILOGY

1. PLANNING
Determine internal & external customers.
Their needs are discovered.
Develop product / service features.
Develop the processes able to produce the product / service features.
Transfer plans to operations.
2. CONTROL
Control is used by operating forces to help meet the product, process and service
requirements.
It consists of the following steps
1. Determine items to be controlled.
2. Set goals for the controls.
3. Measure actual performance.
4. Compare actual performance to goals.
5. Act on the difference.

3. IMPROVEMENT
Aims to attain levels of performance that are higher than current levels.
It consists of the following steps
Establishment of quality council.
Identify the improvement projects.
Establish the project teams with a project leader.
Provide the team with the resources.

THE PDCA CYCLE :

PROBLEM SOLVING METHOD :

1. IDENTIFY THE OPPORTUNITY
Identify the Problem
 Pareto analysis of external alarm signals.
 Pareto analysis of internal alarm signals.
 Proposals from key insiders.
 Proposals from suggestion schemes.
 Field study of user’s needs.
 Comments of key people outside the organization.
 Customer surveys.
 Employee surveys.
 Brainstorming by work groups.
Form the Team
 Team should be selected.
 Goals and milestones are established.
Define the Scope.
Criteria for a good problem statement is as follows
 It clearly describes the problem.
 It states the effect.
 It focuses on what is known, unknown etc.
 It emphasizes the impact on the customer.

2. ANALYZE THE CURRENT PROCESS

The objective is to understand the process and how it is currently performed.
Step 1 : The team to develop a process flow diagram.
Step 2 : The target performance measures are defined.
Step 3 : Collection of all available data and information.
Common items of data and information are
1. Customer information 2. Design information
3. Process information 4. Statistical information
5. Quality information 6. Supplier information
3. DEVELOP THE OPTIMAL SOLUTION(S)
This phase has the objective of establishing potential and feasible solutions and
recommending the best solution to improve the process.
Creativity plays the major role, and brainstorming is the principal technique.
There are three types of creativity:
 Create new processes
 Combine different processes
 Modify the existing process

4. IMPLEMENT CHANGES
This phase has the objective of preparing the implementation plan, obtaining
approval and implementing the process improvements.
Approval of the quality council.
Obtain the advice and consent of departments, functional areas, teams,
individuals etc.
Monitor the activity.

5. STUDY THE RESULTS

This phase has the objective of monitoring and evaluating the change by tracking
and studying the effectiveness of the improvement efforts.

6. STANDARDIZE THE SOLUTION

Institutionalize by positive control of the process.
The quality peripherals – the system, environment and supervision must be
certified.
Operators must be certified.

7. PLAN FOR THE FUTURE

The objective is to achieve improved level of process performance.
Regularly conduct reviews of progress by the quality council.
Establish the systems to identify area for future improvements.
Track performance with respective internal & external customers.
TQM tools and techniques are used to improve quality, delivery and cost.

5-S : HOUSEKEEPING
5-S MEANS EVERYTHING IN ITS PLACE

There can be no TQM without 5-S.

A dirty factory cannot produce quality products.
Clutter hides problems. A neat workplace promotes easy discovery
abnormalities.

The First S : SEIRI : CLEARING

Take out unnecessary items and throw them away

Factory Floor Office Home

 Machines to be scrapped  Used / Broken pens  Broken toys

 Rejected material  Useless paper  Old clothes
 Expired goods  Old diaries  Broken suitcases
 Broken tools,  Broken furnitures
pallets, bins,
trolleys.
 Old notices
Flow Chart :

Consequences of not practicing SEIRI :

The unwanted clutters up the place and the wanted are hard to find.
Every place can only hold so much.
Clutter sometimes causes misidentification.

The Second S : SEITON : ARRANGING

Arrange everything in proper order so that it can be easily picked up for use.

Factory Floor Office Home

 Unlabelled tool crib  Unlabelled file cabinet  Clutter
 Cluttered shelves  Cluttered drawer,shelves,  No orderly
lockers etc. book cases,tables arrangement in
 Stores – no clear  Records & documents the rooms
location system. Not arranged well
 Things on the floor  File heaps and papers
Consequences of not practicing SEITON :
Things are seldom available when needed.
Items are “lost’ in stores.
Items – defectives and good ones get mixed up.
Accidents or near-accidents occur due to clutter.
Visual control of the shop floor is not possible.
Sometimes, production is lost because an item required is available but cannot
be found.
In some offices, Critical Excise records or tax records may not be traceable. This
can lead to finance loss, prosecution or embarrassment.

The Third S : SEISO : SWEEPING

Sweep your workplace thoroughly so that there is no dust anywhere.

Factory Floor Office Home

 Dirty machines  Dirty table & furniture  Dirty furniture, floor,
 Dust on product window, grills,bookshelves.
parts, R.Mtls.
 Dirty jigs, fixtures  Dirty office equipments
 Dirty walls, roofs  Littered floor
 Littered floor  Dirty windows

Consequences of not practicing SEISO :

Most machines are affected by dust & dirt and hence their performance may go
down.
Dust and dirt on products, materials, packing boxes etc. will affect either their
performance quality or their aesthetic look.
Unpleasant to work in.
 The Fourth S : SEIKETSU : CLEANLINESS
Washing with a strong overtone of keeping things disinfected as well as free of
hazardous chemicals.

Factory Floor Office Home

 Handling hazardous  Free of pests  Pest control
chemicals  Personal hygiene  Personal hygiene
 Control of fumes,
hazardous dust.
 Disinfecting, Personal hygiene

Consequences of not practicing SEIKETSU :

Good health and safety require the practice of Seiketsu.
Hazardous chemicals, dusty chemicals, fumes etc. can make it a dangerous
place to work in.
Washing thoroughly and cleaning a place makes the workplace pleasant.

The Fifth S : SHITSUKI : DISCIPLINE

Discipline especially with regard to safety rules and punctuality.

Consequences of not practicing SEIKETSU :

If discipline is not practiced, then the first 4-S would backslide.
Lack of Shitsuki means not following the standards. Then, all activities related to
safety and quality will be affected.

IMPLEMENTING 5-S
1. Top Management resolve and training.
2. Formation of a top level team.
3. Understanding current circumstances.
4. Establishing priorities and targets.
5. Forming sub-teams and training.
6. Major cleaning.
7. Establishing improvement plans in each priority area.
8. Implementing the plan.
9. Verifying results.
10. Standardizing.
11. Establishing full control.
12. Looking for further improvements.

KAIZEN
Kaizen is a Japanese word for the philosophy that defines management’s roles in
continuously encouraging and implementing small improvements involving
everyone.

It focuses on simplification by breaking down complex progress into their

sub – processes and then improving them.
The Kaizen improvement focuses on the use of :
Value – added and non – value work activities.
Muda, which refers to the seven classes of waste – over-production, delay,
transportation, processing, inventory, wasted motion, and defective parts.
Principles of motion study and the use of cell technology.
Principles of materials handling and use of one – piece flow.
Documentation of standard operating procedures.
The five S’s for workplace organization.
Visual management.
Just – in – time principles.
Poka – Yoke.
Team dynamics.
RE-ENGINEERING
It is the fundamental rethinking and radical redesign of business processes to
achieve dramatic improvements in critical measures of performance.

SUPPLIER PARTNERSHIP
The suppliers should be treated as partners to achieve the same quality level as
attained within the organization.
The following forces need Supplier Partnership to improve quality, reduce costs and
increase market share.
Deming Philosophy (Deming’s 4th point)
Just-in-time
Continuous process improvement
ISO 9000

CUSTOMER – SUPPLIER RELATIONS :

Dr. Kaoru Ishikawa has given ten principles of customer-supplier relations. They are
1. Both the customer and supplier are fully responsible for the control of quality.
2. Both the customer and supplier should be independent of each other.
3. The customer is responsible for providing the supplier with clear and sufficient
requirements so that the customer can know precisely what to produce.
4. Both the customer and supplier should enter into a non-adversarial contract.
5. The supplier is responsible for providing the quality that will satisfy the customer.
6. Both the customer and supplier should decide the method to evaluate the quality
of the product or services.
7. Both the customer and supplier should establish in the contract the method by
which they can reach an amicable settlement in case of any dispute.
8. Both the customers and supplier should continually exchange information.
9. Both the customer and supplier should perform business activities.
10.Both the customer and supplier should have the best interest of the end user in
mind.
PARTNERING
Partnering is a relationship between two or more parties based upon trust, dedication
to common goals.
The benefits of partnering are
Improved quality
Increased efficiency
Lower cost
Increased opportunity for innovation
Continuous improvement
The three key elements to a partnership relationship are
Long term commitment
Trust
Shared Vision

SOURCING
The three types of sourcing are
Sole sourcing
Multiple sourcing
Single sourcing

SUPPLIER SELECTION
The suppliers should be selected with the following ten conditions
1. The supplier should understand clearly the management philosophy of the
organization.
2. The supplier should have stable management system.
3. The supplier should maintain high technical standards.
4. The supplier should provide the raw materials and parts which meet quality
specifications required by the purchaser.
5. The supplier should have the required capability in terms of production.
6. The supplier should not leak out the corporate secrets.
7. The supplier should quote right price and should meet the delivery schedule. The
supplier should be accessible with respect to transportation and communication.
8. The supplier should be sincere in implementing the contract provisions.
9. The supplier should have an effective quality system such as ISO / QS 9000.
10.The supplier should be renowned for customer satisfaction.

SUPPLIER CERTIFICATION :
A certified supplier is one which, after extensive investigation, is found to supply
material of such quality that is not necessary to perform routine testing.
The Eight criteria for supplier certification are
1. No product related lot rejections for atleast 1 year.
2. No non-product related rejections for atleast 6 months.
3. No production related negative incidents for atleast 6 months.
4. Should have passed a recent on-site quality system evaluation.
5. Having a fully agreed specifications.
6. Fully documented process and quality system.
7. Timely copies of inspection and test data.
8. Process that is stable and in control.

SUPPLIER RATING :
Supplier Rating is done
To obtain an overall rating of supplier performance.
To communicate with suppliers regarding their performance.
To provide each supplier with a detailed and true record of problems for
corrective action.
To enhance the relationship between the buyer and the supplier.

RELATIONSHIP DEVELOPMENT :
For establishment of supplier relationship, the following are necessary.
(a) Partnering
(b) Supplier selection
(c) Principles of customer / supplier relations
(d) Certification
(e) Periodic rating

For relationship development, the following are necessary.

(a) Inspection
100% inspection
Sampling
Audit
Identity check
(b) Training
(c) Teams
(d) Recognition and Reward