UNIT – II -TQM PRINCIPLES

1. Leadership
2. Quality Statements
3. Strategic quality planning,
4. Quality Councils
5. Employee involvement – Motivation – Empowerment
6. Team and Teamwork
7. Recognition and Reward
8. Performance appraisal
9. Continuous process improvement - PDCA cycle, 5S, Kaizen
10. Supplier partnership – Partnering--Supplier selection-- Supplier
Rating.
Ref: Quality Management for Organizational Excellence: Introduction to Total Quality
David L. Goetsch Stanley Davis
Key Objectives of TQM
Productivity
Quality
Cost
Delivery and
Motivation
Necessity for TQM
Cut-throat Competition
Zero sum approach (zero loss / zero defects / zero breakdowns-TPM)

LEADERSHIP
Leadership is the ability to inspire people to make a total, willing, and
voluntary commitment to accomplishing or exceeding organizational goals.
Characteristics of Good LEADER
1. Balanced Commitment
2. Positive Role Model
3. Good Communication Skills
4. Positive Influence
5. Persuasiveness
 You have to learn how to take orders before you can give them
Drucker’s Criteria used to distinguish leaders from misleaders:
1. Leaders define and clearly articulate the organization’s mission.
2. Leaders set goals, priorities, and standards.
3. Leaders see leadership as a responsibility rather than a privilege of rank.
4. Leaders surround themselves with knowledgeable, strong people who can
make a contribution.
5. Leaders earn trust, respect, and integrity.
Juran’s Trilogy on Leadership on Quality Leaders:
1. Quality Planning 1. INSPIRE
2. Quality Control and 2. MOTIVATE
3. Quality Improvements

The key to motivating people lies in the ability to relate their personal needs to
the organization’s goals.
goals.
A LEADER SHOULD LEAD EVERYBODY AND SHOULD NOT FOLLOW OTHERS
Maslow’s Hierarchy of Needs

Contingency / Crisis Management

Leadership Styles
LEADERSHIP–– Inspirational and Motivational Leadership initiates a concreted and
LEADERSHIP

Systematic Effort towards achieving trust and belief among the TEAM, which allows

Participative Leadership directed towards sustained GROWTH and LEAD CHANGE

across the organization.

Lead Change: Change Facilitation

1. Develop a compelling change picture
2. Communicate the change picture to all stakeholders
3. Conduct a comprehensive roadblock analysis
4. Remove or mitigate all roadblocks identified
5. Implement the change
6. Monitor and adjust
 TEAM BUILDING and TEAM WORK

1. Overview of Team Building and Teamwork

2. Building Teams and Making Them Work
3. Four-Step Approach to Team Building
4. Character Traits and Teamwork
5. Teams are Coached not Bossed
6. Handling Conflict in Teams
7. Structural Inhibitors of Teamwork
8. Rewarding Team and Individual Performance
9. Recognizing Teamwork and Team Players
10. Leading Multicultural Teams
 TEAM: A team is a group of people with a common, collective goal
Characteristics of effective teams
1. Mutual Support and avoid favouritism
2. Challenge and Manage Conflicts
3. Singleness of Purpose (unified commitment)
4. Trust and belief
5. Participation and Periodic assessments
6. People Skills
7. Accountability
8. Reinforcement Read: The Goal: the process of ongoing improvement
9. Communication by Elihayu Goldratt
Goldratt
10. Leadership
4 Step Approach to Team Building
1. Assess (team’s developmental needs, strengths and weaknesses)
2. Plan (plan team building activities)
3. Execute (execute team building activities)
4. Evaluate DIRECTIONS (for / to) ACHIEVE

Organization’s VISION and MISSION

 Traits of an effective team

Challenges faced:
Handling Conflicts
Leading Multicultural Team
Handling Speculation and Split
Handling Diversity

Compensation as Motivation
 Employer - Employee
What Employee Want? (Ranked from the most wanted factor)

1. Interesting Work
2. Appreciation
3. Involvement But this order changes
4. Job Security for Management
5. Good Pay
6. Promotion
7. Good Working Conditions
8. Loyalty to Employer
9. Personal Help
10. Tactful Discipline
T –Together Aspects of Employee Involvement
E – Everyone 1. Motivation
A- Achieves 2. Empowerment
M –More 3. Teams and team work
4. Performance Appraisal

The MANAGEMENT Philosophy

Delegation – Authority (Decision Making Authority -Empowerment)
Communication – Information (Transparent / Modest Management)
Training – Skill Development
Incentive – Reward and Recognition (Monetary/ Job Security etc,.)

The Competitive Advantage of following the management philosophy

1. Employee Morale
2. Turnover
3. Customer Satisfaction
4. Financial Performance (A sound healthy organization)
 Major forms of employee involvement
1. Participative (Individual)
2. Representative (as a group/ cluster meetings/ functional teams)
3. Quality Circles (Together with a target and from all levels and
voluntary participation) – Problem solving approach

Quality Circles
1. Volunteers form a team
2. Set goals and priorities (based on the defects in a production line)
3. Solutions are identified and agreed by consensus
4. Required training or skill up gradation being carried out
5. Team should have management support

Advantages of Quality Circles

1. Increase productivity
2. Improve quality
3. Boost team morale
4. Defect free production (zero defects line)
 Quality Statements
1. Vision Statement
2. Mission Statement
3. Quality Policy Statement
Vision Statement: Where U want to GO
A one-
one-sentence statement describing the clear and inspirational long-
long-term
desired change resulting from an organization focuses on the potential
inherent in the company's future

AMAZON Vision Statement

"Our vision is to be earth's most customer centric company; to build a place
where people can come to find and discover anything they might want to buy
online."
A vision statement is the anchor point of any strategic plan.

Value
Innovate
Passionate
Accountable
Compassionate

Focus Area
Aggressive Growth
Best place to work
Modern Manufacturer
Zero PPM

Objectives- Strategic Objectives

Objectives-
Projects--Plan to Accomplish
Projects
KPI--Key Performance Indicators
KPI
 Supplier partnership – Partnering
Partnering--
--Supplier
Supplier selection--
selection--
Supplier Rating.
Vendor Parallel Growth-Win Win Situation

Supplier Zero Inventory

SCM-Supply Chain Management Partnership

Domestic and International Self Certified Vendor

Customs and Insurance Sharing Penalty (Equally Responsible)

Transportation Quality Compliant

Long Term and Quality Oriented

Key Decision Makers

Internal Partnering
Partnering Model
Evolution of Partnering
Internal Supplier-
Supplier-Customer Relationships
Supply Chain Management –SCM

•Supplier Selection

•Supplier Communication

•Supplier Performance

•Supplier Improvement

•Supplier Certification / Partnership / Alliance

•Supplier Logistics

Fig.Traditional Customer Supplier Chain

 Supplier / Vendor (Quality) Rating
Basics Requirements
1. Quality (T% conformance)
2. Delivery (T% on-time delivery)
3. Service Responsiveness (RFQ, Technical Support, Price etc,.)
4. Capability

KPIs – Key Performance Indicators

1. Reduce purchasing cost.
2. Reduce lead-time variability.
3. Improve invoice accuracy.
4. Improve supplier quality.
5. Provide buyer feedback ratings.
6. Provide supplier financial ratings.
7. Delivery –Early / On-time / Late
8. E-procurement Facility
9. RDMS / ORACLE/ SAP Digital Manufacturing
10. Crisis Management and Risk Mitigation Plan
 Vendor –Selection and Rating Procedure
(Towards achieving 7 Cs)
Vendor Evaluation
Quality
Compliance with Purchase Order
Conformity to Specification
Vendor Rating Reliability
Durability
Support
7Cs
Vendor Assessment Warranty
Service Competency
Capacity
Vendor Ranking Delivery Commitment
Time
Pricing Quantity
Control
Competitive pricing Lead Time Cash Reserves
Price stability Packaging Cost
Sensitive to costs Documentation Consistency
Billing Emergency Delivery
Benefits of vendor rating systems include:

1. Helping minimize subjectivity in judgment and make it possible to

consider all relevant criteria in assessing suppliers.
2. Providing feedback from all areas in one package.
3. Facilitating better communication with vendors.
4. Providing overall control of the vendor base.
5. Requiring specific action to correct identified performance weaknesses.
6. Establishing continuous review standards for vendors, thus ensuring
continuous improvement of vendor performance.
7. Building vendor partnerships, especially with suppliers having strategic
links.
8. Developing a performance-based culture
Performance Appraisal
Williams and Krane : the state of an ideal Job Analysis
performance
1. Risk-taking ability
2. Not being performance-oriented Performance Standards
3. Focusing on work (Acceptable Level of Performance)
4. A sense of self-confidence
5. A sense of adapting to various Performance Appraisal
situations
6. Time and space management

Types of Performance Appraisals

1. 360° Performance Appraisal
2. General Performance Appraisal
3. Manager Performance Appraisal
4. Technological Performance Appraisal
5. Employee Self Assessment
6. Project Evaluation Review
7. Sales Performance Appraisal
Performance Appraisal Techniques KRAs of an Individual are required
Traditional Methods to be submitted for every financial
1. Graphic Rating Scale year
2. Checklist Scale 1. Quality Improvement in (specific)
3. Critical Incidents 2. Productivity Improvement
4. Work Standards Approach 3. Mistake Proofing
5. Essay Methods 4. KAIZEN
6. Confidential Reports 5. Rejection Reduction
7. Field Review Method 6. Process Capability Improvement
8. Grading or Ranking Methods 7. Sales Improvement
9. Cost Accounting Method 8. Introducing New Customers
Modern Approach 9. Cost Reduction Projects
1. MBOs –Management by Objectives
2. KRAs – Key Results Area
3. Psychological Approach
4. BARS-Behaviourally Anchored Rating Scale
Performance
Appraisal
Process
 A GOAL Driven Approach – Proactive and Integrated Problem Solving

Plan Manager
Define Objectives
Set Control Points
Choose Timeline

Monitor
Check Progress MBO-Management by Objectives
Reassess Goals
Offer Feedback

Review
Collect Results
Award Ratings
Discuss Outcome Employee
Advantages of PA
Performance Appraisal Biases
1. Promotion 1. First Impression (Primary Effect)
2. Compensation 2. Halo Effect (Positive Traits Appraisal)
3. Employee Development 3. Horn Effect (Negative Traits Appraisal)
4. Selection Validation 4. Central Tendency
5. Communication (Feedback) 5. Spillover Effect
6. Motivation 6. Recency Effect
7. Benchmarking
8. Objective Assessment (Unbiased)
9. Data Driven
10. Exhibitory
Cost of Poor Quality -CTQ
 Continuous (Continual) Improvements
1. PDCA Cycle (Plan Do Check Act)
2. KAIZEN (Continual Improvement)
3. 5S (Seiri- Seiton- Seiso- Seiketsu- Shitsuke)
4. 3M (Muda- Muri- Mura)

5S – Shop Floor Mapping (Traceability)

SEIRI – Sort (A place for everything)
SEITON – Set In Order (Everything in its Place)
SEISO – Shine (Cleanliness)
SEIKETSU – Standardize (Periodic conduct of the above three)
SHITSUKE –Sustain (Practice 5S / Habit / Discipline)
Benefits to be derived from implementing a lean 5S program
1. Improved safety
2. Higher equipment availability
3. Lower defect rates
4. Reduced costs
5. Increased production agility and flexibility
6. Improved employee morale
7. Better asset utilization
8. Enhanced enterprise image to customers, suppliers, employees,
and management

5S is defined as a methodology that results in a workplace that is

clean, uncluttered, safe, and well organized to help reduce waste
and optimize productivity.
Sixth S - Safety
Edward Deming's PDCA –Plan Do Check Act
PDCA for New Product Development
3M--LEAN Methodology
3M

MUDA-- Wastage
MUDA

MURA-- Imbalance / Inconsistency

MURA

MURI – Overload / Inconvenience

8 Types of waste
MUDA
Transportation
Inventory
MURA Motion
Waiting
Over processing
Over Production
MURI
Defects
Under utilized
 KAIZEN
KAI-Change and ZEN –Good
Everyone-Everyday-Everywhere
UNIT – II -TQM PRINCIPLES
1. Leadership
2. Quality Statements
3. Strategic quality planning,
4. Quality Councils
5. Employee involvement – Motivation – Empowerment
6. Team and Teamwork
7. Recognition and Reward
8. Performance appraisal
9. Continuous process improvement - PDCA cycle, 5S, Kaizen
10. Supplier partnership – Partnering--Supplier selection-- Supplier
Rating.
Ref: Quality Management for Organizational Excellence: Introduction to Total Quality
David L. Goetsch Stanley Davis