G3752 – Total Quality Management

Unit – 2
Leadership:
• Joseph Jaworski chairman of American Leadership Forum suggests that quality depends upon
a vision of excellence.
• Some principles and practices of TQM may differ among firms and industries.
• According to Jura, it cannot be delegated.
• Leadership in TQM is important for establishing a culture of quality, improving products and
services and achieving organizational goals.

Characteristics of Quality Leader:

• Visible, Committed and knowledgeable
• A missionary zeal
• Aggressive targets
• Strong drivers
• Communication of values
• Organization
• Customer contact
Effective Leaders in TQM:
• Set a vision
• Create a culture of quality
• Build trust
• Lead by example
• Teach and train
• Set challenging goals
Role of TQM Leaders:
• Study quality control, companywide quality control.
• Consider the culture of their company decide the stand point.
• Take the lead in promoting quality, quality control and total quality control.
• Carry out the education needed for implementing quality control.
• Collect information on quality and quality control.
• Set up a quality assurance system.
• Check whether quality control and QC circle activities and proceeding according to policy
and plans.
 • Establish control systems for individual functions.
Habits of Quality Leader:
• They give priority to internal as well as external customers.
• They empower, rather than control subordinates.
• They emphasize improvement rather than maintenance.
• They emphasize prevention.
• They encourage collaboration rather than competition.
• They learn from problems.

Deming Philosophy:
• W. Edwards Deming is one of the pioneers of Total Quality Management (TQM).
• His philosophy emphasizes continuous improvement, a systematic approach, and the
importance of leadership in fostering a quality-driven culture.
System of Profound Knowledge
Deming’s philosophy is built on four key principles known as the "System of Profound Knowledge."
These are:
• Appreciation for a System: Understanding that organizations are systems made up of
interrelated processes that must work together efficiently.
• Knowledge of Variation: Recognizing that variation exists in all processes and understanding
the causes of variation is critical to improving quality.
• Theory of Knowledge: Realizing that knowledge is built on theory, and understanding the
importance of continually improving and testing those theories.
• Psychology: Knowing the importance of people, motivation, and relationships within the
system.
Deming's 14 Points for Management
Deming developed 14 principles for improving the effectiveness of an organization. These are central
to his approach to TQM:
1. Create constancy of purpose: Focus on long-term goals rather than short-term profits.
2. Adopt the new philosophy: Embrace quality improvement throughout the organization.
3. Cease dependence on inspection: Quality should be built into the process, not achieved
through inspection.
4. End price-focused purchasing: Don’t base purchasing decisions solely on price, but also on
quality.
5. Improve constantly: Strive for continuous improvement of products, services, and processes.
 6. Institute on-the-job training: Provide workers with proper training to ensure they can
contribute to quality improvement.
7. Institute leadership: Focus on helping people and machines do a better job.
8. Drive out fear: Create an environment where workers feel secure and motivated to improve
quality.
9. Break down barriers between departments: Promote better communication and teamwork
across departments.
10. Eliminate slogans and exhortations: Avoid placing blame on employees; focus on
improving the system.
11. Eliminate arbitrary numerical targets: Replace quotas with leadership that guides toward
quality improvement.
12. Remove barriers to pride in workmanship: Ensure workers are allowed to take pride in
their work.
13. Institute a program of education and self-improvement: Foster continual learning and
growth within the organization.
14. Take action to accomplish the transformation: Commit to change and provide the
necessary leadership to implement it.

Quality Council:
• In order to build quality in the culture, a quality council is established to provide overall
decision.
• Quality Council in TQM is responsible for strategic planning and providing direction for
quality.
• It is composed of
i) Chief Executive Officer (CEO)
ii) Senior managers of functional areas
• The typical quality council meeting agenda are:
✓ Progress reports on teams
✓ Customer satisfaction report
✓ Progress on meeting goals
✓ New project teams
✓ Recognition dinner
✓ Benchmarking report
Duties of Quality Council:
• To develop the vision, mission and quality statement.
 • To develop strategic long-term plan with goals.
• Create a total education and training plan.
• Continuously monitor the cost of poor quality.
• Determine the performance measures.
• Establish multifunctional project.

Quality Statements and Strategic Planning:

Quality Statements:
• Quality statements are part of strategic planning process.
• Vision Statement: It is a short declaration of what an organization aspires to be tomorrow.
• Mission Statement: It gives answer to who we are, what we do, how we do for whom we do.
• Quality Policy Statement: It is a guide for everyone in the organization as to how they should
provide products and service to the customers.

Customer Satisfaction:
• Customer satisfaction refers to how products and services meet or surpass customer
expectations.
• It’s a key performance metric in TQM, where success is defined by the ability to continuously
deliver high-quality products or services that fulfill the customers' desires.
• Customer satisfaction leads to:
✓ Positive word of mouth
✓ Customer loyalty
✓ Repeat business
✓ Competitive advantage
• In TQM, customer satisfaction is achieved by involving every department in the organization,
from product development to post-sales support, to ensure that quality is inherent at every
stage.
Customer Perception of Quality:
• Customer perception of quality refers to the way customers view and experience the quality of a
product or service. This perception can differ from actual quality and is influenced by:
• Previous experiences with the product or brand
• Brand reputation and market standing
• Expectations based on marketing or industry standards
• Price and value-for-money considerations
Feedback:

• Customer feedback is an essential tool in TQM for understanding customer needs,

measuring satisfaction, and identifying areas for improvement. Feedback mechanisms
include:
• Surveys and questionnaires: To gauge customer opinions about specific products or
services.
• Direct interactions: Via customer service channels like phone, chat, and email.
• Product reviews: Customer reviews and ratings on platforms.
• Social media: Gathering feedback from customer discussions and mentions.
Customer Complaints:
• Customer complaints are inevitable. The key to managing customer complaints is to:
• Respond promptly and effectively
• Acknowledge the customer’s concerns and show empathy
• Offer resolutions that satisfy the customer

Service Quality:
• It is important as product quality.
• Service quality is the extent to which a service meets customers' expectations. It’s assessed
using five dimensions:
1) Reliability: The ability to deliver consistent, dependable services.
2) Responsiveness: Willingness to help customers and provide timely service.
3) Assurance: Knowledge and courtesy of employees and their ability to inspire
trust.
4) Empathy: Providing personalized attention and care to customers.
5) Tangibles: Physical facilities, equipment, and appearance of personnel.

Kano Model:
• The Kano Model is a framework that helps organizations understand customer needs and
preferences by categorizing them into different levels of satisfaction:
• Basic Needs (Must-Be Quality): Features that customers expect and consider essential. If
these are absent, customers will be dissatisfied.
• Performance Needs (One-Dimensional Quality): Features that directly affect customer
satisfaction. The better these are, the more satisfied the customer will be.
• Excitement Needs (Delighters): Features that are unexpected and pleasantly surprise
customers. These can generate a lot of customer satisfaction but aren’t expected or required.
• Indifferent Quality: Features that do not significantly impact customer satisfaction.
• Reverse Quality: Features that, if present, might lead to dissatisfaction for some customers.
Customer Retention:
• Customer retention refers to the ability of a company to keep its customers over time,
fostering long-term relationships. TQM emphasizes customer retention through:
• Providing consistent quality products and services
• Maintaining high levels of customer service
• Offering value-added services that exceed customer expectations

Employee Involvement:
• It is the process for empowering members of an organization.
• Quality improvement can result from a reduction in cost or cycle time.
• Employees must be involved, empowered.
• It provides employees with the tools.
Motivation:
• Motivation is an important function of management.
• Motive is an internal force.
• It needs desires.
Victor Vroom:
• Motivation is the process of initiating and directing behaviour.
Edwin B.Flippo:
• Process of attempting to influence others to do your will through gain or reward.
William Scott:
• Process of stimulating people to accomplish desired goals.
Significance of motivation:
• It increases overall productivity.
• Improves skill and knowledge.
• Builds Human relationship,
• Promotes self-discipline.

Motivation Theories:
1) Maslow’s Need Hierarchy Theory
2) Herzberg’s Two Factor Theory
3) McGregor’s Theory X and Theory Y
4) McClelland Theory
1) Maslow’s need hierarchy theory:
• One of the most well-known motivation theories, Maslow's Hierarchy of Needs,
suggests that human needs are arranged in a five-level hierarchy, with basic needs at
the bottom and higher-level needs at the top.
• Employees will strive for higher-level needs once the lower-level needs are fulfilled.
The Five Levels of Needs:
1. Physiological Needs:
o These are the most basic needs such as food, shelter, and warmth. In the
workplace, ensuring employees receive fair wages and benefits satisfies their
physiological needs.
o TQM Perspective: Fair compensation for work and ensuring basic job security
are foundational.
2. Safety Needs:
o Safety needs include physical safety as well as job security and stability.
o TQM Perspective: Providing safe working conditions, job security, and clear
career paths are essential in motivating employees at this level.
3. Social Needs (Belongingness):
o These needs include the desire for relationships, belonging to a group, and
feeling accepted.
o TQM Perspective: TQM encourages teamwork, open communication, and
collaboration. Employees are often organized into teams to improve quality
processes, fulfilling their social needs by fostering a sense of community.
4. Esteem Needs:
o Esteem needs relate to self-respect and respect from others. Employees seek
recognition for their achievements and the ability to feel good about their
contributions.
o TQM Perspective: By giving employees ownership over quality improvements,
recognizing contributions, and providing opportunities for professional growth,
TQM satisfies esteem needs.
5. Self-Actualization:
o This is the highest level of need and involves realizing one’s full potential.
Employees are driven to be creative, innovative, and perform at their highest
level.
 o TQM Perspective: TQM enables self-actualization by encouraging employees
to participate in continuous improvement, problem-solving, and innovation,
thus allowing them to use their full potential in improving processes and quality.
2) Herzberg’s Two – Factor Theory:
• Herzberg’s Two-Factor Theory, also known as the Motivation-Hygiene Theory,
differentiates between factors that cause job satisfaction (motivators) and those that
prevent dissatisfaction (hygiene factors).
Two Key Factors:
• Hygiene Factors:
• These are extrinsic factors related to job context, such as salary, company
policies, working conditions, and interpersonal relations. Improving these factors will
reduce dissatisfaction but will not necessarily increase motivation.
• Examples: Job security, wages, safety, and work-life balance.
• TQM Perspective: In TQM, companies ensure that hygiene factors are
addressed by providing fair pay, clear policies, and safe working environments. These
factors are crucial for preventing dissatisfaction but are not sufficient for long-term
motivation.

• Motivators:
o These are intrinsic factors related to job content, such as challenging work,
recognition, responsibility, and opportunities for personal growth. Motivators
lead to higher job satisfaction and drive motivation.
o Examples: Achievement, recognition, personal growth, and increased
responsibility.
o TQM Perspective: TQM encourages the use of motivators by involving
employees in decision-making, offering recognition for their contributions to
quality improvement, and providing opportunities for advancement and
learning. TQM practices like problem-solving groups and quality circles make
employees feel valued and empowered.

3) McGregor’s Theory X and Theory Y:

• McGregor’s Theory X and Theory Y are two contrasting views of human motivation
in the workplace.
Theory X:
• Theory X assumes that employees are inherently lazy, avoid work, and must be closely
supervised. Managers believe employees need strict controls and external rewards or
punishments to motivate them.
• TQM Perspective: TQM rejects the assumptions of Theory X because TQM relies on
employee empowerment, collaboration, and self-motivation. Strict control and
supervision are contrary to TQM’s emphasis on teamwork and ownership of processes.
Theory Y:
• Theory Y assumes that employees are self-motivated, enjoy their work, and seek
responsibility. Managers following Theory Y believe that employees are capable of
creativity and innovation if given the right environment.
• TQM Perspective: TQM aligns with Theory Y by empowering employees to take
ownership of quality improvement. Employees are given responsibility, trusted to work
without close supervision, and encouraged to participate in decision-making
4)Vroom’s Expectancy Theory:

• Vroom’s Expectancy Theory focuses on the idea that motivation is based on an

individual’s expectation that their effort will lead to desired outcomes.
• This theory suggests that motivation is a result of three factors: expectancy,
instrumentality, and valence.
i)Expectancy: The belief that increased effort will lead to better performance.
ii) Instrumentality: The belief that good performance will be rewarded.
iii) Valence: The value an individual places on the reward they receive.

5) Equity Theory:

• Equity Theory, proposed by John Stacey Adams, suggests that employees are
motivated by fairness. Employees compare their inputs (effort, skills, and experience)
and outcomes (rewards, recognition) with those of their colleagues.

Empowerment:
• Feel responsible and encouraged for their own task.
• Given a free hand in their work.
• Balances their own goals with those of organization.
• Creative, trained and equipped.
 • Self esteem and motivated.
• Continuously improve and monitor their work.
• Builds confidence among employees.
• Improves customer services.

Team and Teamwork:

• Teams are the most powerful tool for solving problems.
• A team is defined as a small number of people with complementary skills.
• Development of teams:
✓ Drifting stage
✓ Gelling stage
✓ Unison stage
• Drifting stage: Individuals come together and know each other.
• Gelling stage: Like minded individuals form subgroups.
• Unison stage: The team behaves as a single, highly organized body under a single
leader.
Barriers to Team Progress:
• Insufficient training
• Incompatible rewards and compensation
• Lack of planning
• No clear measures for success
• Team is too large

Recognition & Rewards:

• They are considered powerful tools which are used by an organization to motivate its
employees.
• Types of rewards:
✓ Variable pay
✓ Additional hour’s rewards
✓ Bonus
✓ Profit sharing
✓ Price rate reward
Recognition:
• Employees will not always be motivated by monetary value alone.
 • They do require recognition to be motivated and to perform well in their work.

Forms of recognition:
• Job enrichment
• Empowerment
• Awards
Performance Appraisal:
• Purpose is to serve as a diagnostic tool.
• Most effective when they focus on the objectives of the company.
• Integration of total quality is necessary.
• Customer expectations not the job description.
• Results expectation meet different criteria.
• Include behavioral skills.
Improving Appraisal system:
• Use the performance appraisal.
• Provide feedback regularly.
• Engage in a two-way discussion.
• Trust employee to do the right thing.

Continuous Process Improvement:

• It consists of measuring key quality and other process.
• Taking actions to improve them.

Steps in improvement:
• Carry out research and analysis.
 • Decide which problems to tackle and set targets.
• Fix the structures and responsibilities.
• Identify the status.
• Carry out process analysis.
• Prepare action plans.
• Take action.
• Check the results.
• Prepare plans for the future.

Juran Trilogy:
• The Juran Trilogy, developed by Dr. Joseph M. Juran, is a fundamental framework
in Total Quality Management (TQM) that focuses on three critical processes for
managing quality: quality planning, quality control, and quality improvement.

Quality Planning:
• Quality planning is the first step in the Juran Trilogy.
• It involves designing processes that are capable of meeting customer needs and
expectations.
• It determine the customer needs.
• Identify Customers and Their Needs: Understanding who the customers are (both
internal and external) and what they expect from the product or service.
• Establish Quality Goals: Define measurable objectives for quality that align with
customer expectations and business objectives.
• Develop Processes: Create processes that can deliver products or services that meet or
exceed customer needs.
Quality Control:
• Quality control is the process of monitoring and measuring actual performance to
ensure that it meets the established quality standards.
• It involves maintaining and controlling the quality of products or services during
production.
 • It measures actual performance.
• Set Performance Standards: Define the criteria for measuring quality, such as
tolerance levels, acceptable defect rates, or product specifications.
• Measure Actual Performance: Use appropriate metrics, tools, and techniques (e.g.,
statistical process control) to track how well the process or product meets the defined
quality standards.
Quality Improvement:
• Quality improvement is the process of continuously enhancing and optimizing
processes to achieve better quality.
• It focuses on reducing chronic waste and inefficiencies, thus improving overall
performance.
• Identify Improvement Opportunities: Continuously look for areas where quality can
be improved, such as processes, products, or services that are not meeting expectations.
• Analyze the Root Cause: Use tools like root cause analysis to identify the underlying
reasons for defects or inefficiencies.
• Develop Solutions: Implement changes or solutions that address the root causes of
quality problems, leading to long-term improvements.

PDSA cycle:
• The PDSA Cycle (Plan-Do-Study-Act), also known as the Deming Cycle or Deming
Wheel, is a systematic and iterative process used in Total Quality Management (TQM)
for continuous improvement of processes, products, or services.

Plan:
• It decide on an objective.
• The planning phase involves identifying opportunities for improvement and developing
a plan to test or implement changes.
• Identify a Problem or Opportunity: Recognize a specific area where improvement is
needed, such as inefficiencies, defects, or customer dissatisfaction.
 • Set Objectives and Goals: Clearly define what you aim to achieve with the
improvement. Goals should be specific, measurable, attainable, relevant, and time-
bound (SMART).
Do:
• It carry out training and education.
• It is used to do the work.
• In the "Do" phase, the plan is implemented on a small scale to test its effectiveness.
• Execute the Plan: Carry out the proposed change or improvement on a pilot basis. This
allows for testing in a controlled environment before full implementation.
Study
• In the "Study" phase, the results of the small-scale implementation are analyzed to
determine whether the change led to improvement.
• Evaluate the Results: Compare the data from the "Do" phase with the objectives set
in the "Plan" phase. Analyze whether the change has led to improvements or not.
Act:
• In the "Act" phase, decisions are made based on the findings of the study phase. The
organization either fully implements the change or revises the plan for another cycle of
testing.
• Implement Changes on a Larger Scale: If the change was successful, roll it out on a
larger scale across the organization.
Features of PDSA cycle:
• Iterative process
• Small-scale testing
• Data- driven decision making
Benefits of PDSA cycle:
• Systematic approach
• Minimize risk
• Encourage learning and adaptation
• Promotes Continuous Improvement
5S:
• The 5S methodology is a workplace organization technique derived from Japanese
manufacturing practices.
• It focuses on creating and maintaining a clean, organized, and efficient workspace,
which improves quality, safety, and productivity.
• The five S’s are Sort, Set in Order, Shine, Standardize, and Sustain.
i) Seiri (Sort):
• Identify and remove unnecessary items from the workspace that are not needed for
current operations.
• Helps eliminate clutter, freeing up space and reducing the likelihood of defects or
delays.
• Keep only essential tools and materials.
• Discard or relocate items that do not add value.
ii) Seiton (Set in order):
• Organize the remaining items so that they are easy to access and use.
• Tools, materials, and information should have designated places to ensure efficiency.
• Label everything clearly and store items in logical places.
• Make frequently used items easily accessible.
iii) Seiso (Shine):
• Clean the workplace and equipment regularly to maintain a high standard of cleanliness.
• A clean environment ensures smooth operations and helps detect issues like leaks or
wear before they become major problems.
• Clean as you go, keeping tools and equipment ready for immediate use.
• Conduct regular inspections to maintain cleanliness.
iv) Seiketsu (Standardize):
• Develop standard procedures for maintaining the organization and cleanliness achieved
through the first three steps.
• This helps ensure consistency and makes it easier for everyone to follow the system.
• Create checklists, schedules, and procedures.
• Train employees on maintaining 5S standards.
v) Shitsuke (Sustain):
• Ensure that 5S practices are maintained over time through discipline and regular audits.
• Sustaining 5S is critical to long-term success, requiring commitment from all
employees.
 • Conduct periodic reviews and audits to ensure compliance.
• Continuously improve the process and encourage feedback from workers.

Benefits of 5S:
• Improved efficiency
• Higher Quality
• Increased safety
• Employee Morale

Kaizen – Supplier Partnership:

• Kaizen is a Japanese term that means "continuous improvement." In TQM, Kaizen
emphasizes ongoing incremental improvements in processes, products, and workflows,
involving employees at all levels of an organization.
• When applied in the context of supplier partnerships, Kaizen focuses on creating
long-term, mutually beneficial relationships between the company and its suppliers.
• Kaizen has been at the heart of quality improvement in Japanese companies.
• Kaizen differs from the classical western approach to improvement principally.
• Kaizen on the other hand, is a continuous services of small step improvements.
• An important aspect of kaizen is the standardization and maintenance of improvements.

Innovation steps:
• Define area for improvement
• Analyse and select appropriate problem
• Identify causes
• Plan Countermeasures
• Implementation
 • Confirmation of result
• Standardization

Partnering:
• It is a long term commitment between two or more organization for achieving goals.
• It maximize the effectiveness of each participant’s resources.
• There are three elements of partnering relationship.
i) Long term commitment
ii) Trust
iii) Shared vision
• Long term commitment: Process needs continuous improvement, involvement from
top to bottom.
• Trust: It eliminate deficiencies.
• Shared vision: To satisfy end user or customer.

Supplier Partnership:
• Purchaser and supplier are responsible for quality control.
• Purchaser and supplier should preserve the individual autonomy.
 • Purchaser is responsible for presenting his requirements.
• Before starting and business purchaser and supplier should draw up and sign paper
contracts.
• Supplier is responsible for guaranteeing of quality.
• Should give due consideration.
• To ensure trouble free relationship.
• Take full account of final customer’s interest.

Supplier Selection:
• Basic policy been established.
• It development of quality control, quality assurance of top management.
• Purchasing to be done through QC audit.
• It vary the ordering system appropriately.
• Supplier selection should be reviewed regularly.

Supplier Rating:
• It is performance measures and indicators are derived.
• Organization to succeed over the long term
• Important role of process improvement:
i)Tracking progress
ii)Identifying opportunities
iii) Comparing performance
• It measures are used in process control.
• Efficiency: (Resources actually used / Resources planned to be used) x 100%
• Productivity: Outputs/inputs

Strategic Quality Planning:

• Most of the successful companies will attribute their progress.
• Total Quality begins with a strategic decision.
• Total quality concentrates on quality performance.
• Major contributors to the development of the strategic concepts.
• The pattern of goals, policies, plans and human organization.
• A basic rule of strategic planning is that structure follows strategy.
 • The important role that quality plays in strategic planning can best be understood by
examining the components of a strategy.
1. Mission
2. Product
3. Competitive edge
4. Supporting Policies
5. Objectives
6. Organization culture

Mission:
• The mission is the primary overall purpose of an organization.
• The mission statement includes the value that is being added.
Environment:
• The major determinant of a mission is the environment in which the firm plans to
operate.
• Strategy is essentially the process of positioning one-self in that environment.