Dr.N.G.P.

Institute of Technology
Department of Civil Engineering

GE3752 - TOTAL QUALITY MANAGEMENT

Unit 2 : TQM PRINCIPLES

Prepared By
Dr.E.Prabakaran [AP(SS) / Civil Engineering]
 UNIT II – TQM PRINCIPLES 2

Leadership - Deming Philosophy, Quality Council, Quality

statements and Strategic planning- Customer Satisfaction –
Customer Perception of Quality, Feedback, Customer
complaints, Service Quality, Kano Model and Customer
retention – Employee involvement – Motivation,
Empowerment, Team and Teamwork, Recognition &
Reward and Performance Appraisal-- Continuous process
improvement –Juran Trilogy, PDSA cycle, 5S and Kaizen -
Supplier partnership – Partnering, Supplier selection,
Supplier Rating and Relationship development.
 UNIT II – TQM PRINCIPLES
3
 LEADERSHIP

 STRATEGIC QUALITY PLANNING

 Quality Councils

 EMPLOYEE INVOLVEMENT
 MOTIVATION
 EMPOWERMENT
 TEAM AND TEAM WORK
 RECOGNITION AND REWARD
 PERFORMANCE APPRAISAL
 UNIT II – TQM PRINCIPLES
4

 CONTINUOUS PROCESS IMPROVEMENT

 PDSA CYCLE, 5S, KAIZEN

 SUPPLIER PARTNERSHIP
 PARTNERING
 SUPPLIER SELECTION
 SUPPLIER RATING
 LEARNING OBJECTIVES
Realize the influence of leadership on quality management 5

Analyze and understand the leadership roles in the TQM effort

Analyze and understand the duties of quality council
Understand and implement the strategic planning process
Know who the customers are, understand why they are
important
Analyze various factors that affect customer satisfaction
Understand Kano’s model of customer satisfaction in identifying
customer needs
Understand and implement the customer complaint/ feedback
Appreciate the process of customer retention
 LEARNING OBJECTIVES 6

Appreciate the importance of motivating the people in

developing employee involvement
Explain the various stages of team development
Understand the importance of recognition and reward systems
Understand the basic ideas and concepts of continuous
process improvement
Implement and appreciate the usefulness of ‘5S’
Understand the philosophy of Kaizen
Understand the role of supplier in TQM
Provide a framework to select, evaluate, and develop suppliers
 LEADERSHIP
8

“Leadership is lifting of man’s visions to higher sights,

the raising of man’s performance to a higher standard,
the building of man’s personality beyond its normal
limitations.”
-- Peter Drucker
Leadership is the process of influencing others
towards the accomplishment of goals. He triggers the will to
do, shows the direction and guide the group members
towards the accomplishment of goals.
 LEADERSHIP
9

1. Lead by example – spend time with all level, dealers and

suppliers. Like having food, using co product

2. Listen to front line people

3. Strive for continuous process improvement

CHARACTERISTICS OF QUALITY LEADERS
10

1. THE CUSTOMERS FIRST

2. VALUE PEOPLE

3. BUILD SUPPLIER PARTNERSHIP

4. EMPOWER PEOPLE

5. STRIVE FOR EXCELLENCE

6. DEMONSTRATE INVOLVEMENT / COMMITMENT

7. EXPLAIN & DEPLOY POLICY

8. IMPROVE COMMUNICATION

9. PROMOTE TEAMWORK

10.BENCHMARK CONTINUOUSLY

11.ESTABLISH SYSTEM

12.ENCOURAGE COLLABORATION
Leadership Styles For Leader
 Directing Style

 Consulative Style

 Participative Style

 Delegating Style
REQUIREMENTS OF EFFECTIVE LEADERSHIP
12

Vision

Value
Empowerment
congruence

Self-
Intuition
understanding
EIGHT LEADERSHIP ROLES
13
ROLE OF SENIOR MANAGEMENT (ROLE OF TQM LEADERS)
14

 To study and investigate the TQM concepts and issues

 To set clear quality policies and provide challenging tasks

 To establish ‘priority of quality’ and ‘customer satisfaction’ as the

basic policy and determine the long term goals
 To bring cultural change required for the TQM effort

 To establish the TQM vision for the future and communicate to all

 To become coaches and cheer leaders for encouraging and

supporting the managers during transition phase of the
transformation change.
 To stimulate employees to be involved
ROLE OF SENIOR MANAGEMENT (ROLE OF TQM LEADERS)
15

 To teach employees to realize that the company’s interest and their

interest are geared into one another
 To attend TQM training programs

 To uphold norms and values, and let it be known

 To create coordination and harmony among and within departments
 To create a basic of trust, respect and open communication which
ensures individual participation and continuous improvement.
 To monitor whether quality improvement programs are conducted as
planned.
 Manager Vs Leader
16

Managers have employees Leaders win followers.

Managers react to change. Leaders create change.
Managers have good ideas Leaders implement them.
Managers communicate. Leaders persuade.
Managers direct groups. Leaders create teams.
Managers try to be heroes. Leaders make heroes of everyone
around them.
Managers take credit Leaders take responsibility.
Managers are focused. Leaders create shared focus.
Managers exercise Leaders develop power with people.
power over people.
STRATEGIC PLANNING
STRATEGIC PLANNING 18

PRESENT VISION OF FUTURE

STRATEGIC PLAN

It is process of deciding on the objectives of the

organisation, on changes on these objective, on the resource
used to attain these objectives and on policies that are to
govern the acquisition, use and disposition of these resources
QUALITY COUNCIL
20

IT IS A TEAM TO PROVIDE OVERALL DIRECTION

FOR ACHIEVING THE TOTAL QUALITY CULTURE (TQC)

IT IS FORMED TO HELP IN BUILDING QUALITY

INTO THE CULTURE TO PROVIDE OVERALL DIRECTION

COMPOSITION:

CHIEF EXECUTIVE OFFICER

SENIOR MANAGERS OF FUNCTIONAL AREAS
QUALITY COUNCIL COORDINATOR / CONSULTANT
Quality Council Structure
 DUTIES OF QUALITY COUNCIL
22

1. Develop the core values, vision, mission & quality policy statements
2. Develop the strategic long term plan with goals and annual Q.I.P with
objectives
3. Create the total education and training plan
4. Determine and continually monitor the cost of poor quality
5. Determine the performance measures for the organization, approve
those for functional areas and monitor them continuously to improve
the process of customer satisfaction
6. Establish work group teams at different levels and monitor their
progress
7. Establish or revise the recognition and reward system to account for
the new way of doing business
 EMPLOYEE INVOLVEMENT
23

 Employee involvement is one approach to improve

quality and productivity.

 It is a means to better meet the organization’s goals for

quality and productivity.
EMPLOYEE INVOLVEMENT
24

ASPECTS OF EMPLOYEE INVOLVEMENT

1. Employee motivation

2. Employee Empowerment

3. Teams and Team work

4. Recognition and Reward Schemes

5. Performance Appraisal
 EMPLOYEE INVOLVEMENT
25
MOTIVATION
MASLOW’S HIERARCHY OF NEEDS
 EMPLOYEE INVOLVEMENT
26

ACHIEVING A MOTIVATED WORK FORCE

The building of a motivated work force if for the most part an indirect
process.
Concepts to achieve a motivated work force are as follows:
1. Know thyself.  Job rotation
2. Know your employees.  Job enlargement
3. Establish a positive attitude.  Job enrichment
4. Share the goals. 7. Communicate effectively
5. Monitor progress. 8. Celebrate success.
6. Develop interesting work.
 EMPLOYEE INVOLVEMENT
27
EMPOWERMENT

Empowerment is investing people with authority.

• A primary goal of employee empowerment is to give workers a

greater voice in decisions about work-related matters.
• Their decision-making authority can range from offering
suggestions to exercising veto power over management
decisions.
• possible areas include: how jobs are to be performed, working
conditions, company policies, work hours, peer review, and how
supervisors are evaluated
 EMPLOYEE INVOLVEMENT
28
THE PRINCIPLES OF EMPOWERING PEOPLE ARE GIVEN BELOW

1. Tell people what their responsibilities are

2. Give authority
3. Set standards for excellence
4. Render training
5. Provide knowledge and information
6. Trust them
7. Allow them to commit mistakes
8. Treat them with dignity and respect

THREE DIMENSIONS OF EMPOWERMENT ARE

 Capability
 Alignment and
 Trust
 TEAM AND TEAM WORK
29

TEAMS
 Employee involvement is optimized by the use of teams.
 A team is defined as a group of people working together to
achieve common objectives or goals.
 Teamwork is the cumulative actions of the team during which
each member of the team subordinates his individual interests
and opinions to fulfil the objectives or goals of the group.
 TEAM AND TEAM WORK
30

TYPES OF TEAMS

1. Process improvement team.

2. Cross – functional team.
3. Natural work teams.
4. Self – Directed / Self – Managed work teams.
 TEAM AND TEAM WORK
31
CHARACTERISTICS OF SUCCESSFUL TEAMS

1. Sponsor 9. Resources
2. Team Charter 10.Trust
3. Team Composition 11.Effective Problem Solving
4. Training 12.Open Communication
5. Ground Rules 13.Appropriate Leadership
6. Clear Objectives 14.Balanced Participation
7. Accountability 15.Cohesiveness
8. Well-Defined decision
procedure
 TEAM AND TEAM WORK
32
FUNCTIONS OF TEAMS 1.
Develop
9.
list of
Implement 2. Pick
solution problems
problem
and to tackle
monitor

8. Identify
Develop 3.
follow Collect
up plan Solve data
Analyse

7 Pick
4. Focus
best
attention
solutions

6.
5. Find
Develop
causes
solutions
Barriers to Team Work
 RECOGNITION AND REWARDS
34

Recognition is a process whereby management shows

acknowledgement of an employees outstanding performance
Recognition is a form of employee positive motivation.
This acknowledgment may be financial, psychological or
both in nature.

Reward is a tangible one, such as increased salaries,

commissions, cash bonus, gain shares etc., to promote
desirable behaviour.
 RECOGNITION AND REWARDS
35

TYPES OF REWARDS

INTRINSIC REWARDS

EXTRINSIC REWARDS
 RECOGNITION AND REWARDS
36

Sl. INTRINSIC REWARDS EXTRINSIC REWARDS

No.

1 Non-monetary forms of recognition Profit sharing

2 Celebrations Gain sharing

3 Regular expressions Employment security

4 360O performance appraisal Compensation time

Formal suggestion system available Individual based performance

5
for individuals systems

Development based performance Quality based performance

6
appraisal appraisals
 PERFORMANCE APPRAISALS
37

PERFORMANCE APPRAISAL is a systematic and objective

assessment or evaluation of performance and contribution of an
individual.

NEED
To identify employees for salary revision, promotion, transfer, demotion,
and lay-off
To determine training and development needs of the employees.
To motivate employees by providing feedback on their performance levels
To validate the selection procedures
To make supervisors and executives more observant of their subordinates
 PERFORMANCE APPRAISALS
38
PROCESS OF PERFORMANCE APPRAISAL

1. Establish performance standards

2. Communicate performance expectations to employees

3. Measure actual performance

4. Compare actual performance with standards

5. Discuss the appraisal with the employee

6. If necessary, initiate correction action

 PERFORMANCE APPRAISALS
39
BENEFITS OF PERFORMANCE APPRAISAL

1. Provides a feedback to identify employees for salary revision, transfer, lay-off

2. Helps in determining training needs of employee
3. Provides organization inventory of people
4. Helps to evaluate personal strength and weakness of individuals
5. To validate the selection procedure.
6. Provide the basis for promotion, demotion etc
7. May provide some information on external factors like family circumstances,
health, financial or personal matters that may be affecting the performance
 CONTINUOUS PROCESS IMPROVEMENT
40

TQM has been defined as a philosophy based on quest for

progress and continual improvement in the areas of cost,

reliability, quality, innovation, efficiency and business

effectiveness

It is a continuous learning process which never stops and is

cyclic and iterative

To do CPI, we have different approaches such as Juran

Trilogy, PDSA cycle, Kaizen and 5S concept

 CONTINUOUS PROCESS IMPROVEMENT
41
INPUT/OUTPUT PROCESS MODEL

FEED BACK

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

CONDITIONS
 CONTINUOUS PROCESS IMPROVEMENT
42

SCIENTIFIC METHODS FOR PROCESS IMPROVEMENT

1) Identify and define the problem

2) Study the existing situation; collect necessary data

3) Generate possible solution alternatives

4) Evaluate alternatives and choose the preferred one

5) Implement the improvement and measure results

6) Evaluate and revise, if required

7) Otherwise, return to step one and start again with a new problem
CONTINUOUS PROCESS IMPROVEMENT - KAIZEN
43
 CONTINUOUS PROCESS IMPROVEMENT - KAIZEN
• Kaizen is a system of continuous improvement in quality, technology,
44

processes, company culture, productivity, safety and leadership.

• Kaizen was created in Japan following World War II.
• Kaizen is a system that involves every employee – from upper management
to the cleaning crew.
• Everyone is encouraged to come up with small improvement suggestions on
a regular basis.
• This is not a once a month or once a year activity. It is continuous.
• Japanese companies, such as Toyota and Canon, a total of 60 to 70
suggestions per employee per year are written down, shared and
implemented.
• In most cases these are not ideas for major changes.
• Kaizen is based on making little changes on a regular basis: always
improving productivity, safety and effectiveness while reducing waste.
 CONTINUOUS PROCESS IMPROVEMENT – KAIZEN
The Various aspects of Kaizen philosophy are shown:- 45
 CONTINUOUS PROCESS IMPROVEMENT - KAIZEN

There are a few specific companies that are well-known 46

for using Kaizen to achieve much better production

results.

1. Great Western Bank is a U.S. bank that has been

around for decades.

• Opening a checking account at Great Western used to

take 34 steps.
• Thanks to Kaizen, this has been reduced to 24.
• Great Western Bank uses Kaizen to analyze its
processes and provide a better service for their
customers.
 CONTINUOUS PROCESS IMPROVEMENT - KAIZEN

Examples : 47

2. The Toyota Production System invites team members to

think about the process and make timely decisions in order
to keep it running smoothly, rather than merely operating
like machines.

Every morning an “asa-ichi” meeting is held to discuss

quality deviations and eliminate their causes. For
example, at
Toyota Material Handling Europe’s production sites
about 3,000 proposals for improvements are made
 CONTINUOUS PROCESS IMPROVEMENT - KAIZEN

Examples : 48

3. Herman Miller is an American office furniture company that

is best known for producing the Aeron chair, one of the
most well-known task chairs in the entire world

• In 2012 that Herman Miller had adopted Kaizen and

enjoyed a resulting 500% increase in productivity and
1,000% increase in quality since 1998.
• Their Aeron chairs, which used to take 82 seconds to
come off the line, can now be produced in just 17 seconds.
 CONTINUOUS PROCESS IMPROVEMENT - KAIZEN

Examples : 49

4. Gujarat Government

• In late 2012, the Kaizen Institute of India reported that the

Education Department of the Gujarat government
commissioned two weeks of Kaizen training for more than
80 employees, as an attempt to improve the functionality
of its public sector.
 CONTINUOUS PROCESS IMPROVEMENT - KAIZEN

Examples : 50
 CONTINUOUS PROCESS IMPROVEMENT - KAIZEN

Examples : 51
CONTINUOUS PROCESS IMPROVEMENT - 5S
52
 CONTINUOUS PROCESS IMPROVEMENT - 5S
53

The 5 S process is a housekeeping technique used to establish and

maintain a productive and quality environment in an organisation.

A well organised work place results in a safer, more efficient and more
productive operation.

5S was invented in Japan.

SEIRI
SEITON
SEISO
SEIKETSU
SHITSUKE
CONTINUOUS PROCESS IMPROVEMENT - 5S
54
CONTINUOUS PROCESS IMPROVEMENT - 5S
55
 CONTINUOUS PROCESS IMPROVEMENT - 5S
56

OBJECTIVES OF 5S

1. To create a neat and clean work place

2. To systemise day to day work

3. To improve work efficiency

4. To standardise work practices

5. To improve work discipline

6. To improve the quality of work and products

Juran Trilogy
PDSA CYCLE
 SUPPLIER PARTNERSHIP
Supplier partnering is defined as a continuing 59

relationship, between a buying firm and supplying firm, involving a

commitment over an extended time period, an exchange of
information, and acknowledgement of the risks and rewards of the
relationship. BENEFITS:
a) Improved quality
b) Reduced cost
c) Increased productivity
d) Increased efficiency
e) Increased market share
f) Increased opportunity for innovation
g) Continuous improvement of products/ services
 CUSTOMER – SUPPLIER RELATIONS

Dr. Kaoru Ishikawa has given ten principles of 60

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.

 CUSTOMER – SUPPLIER RELATIONS

6. Both the customer and supplier should decide the 61

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.
 SUPPLIER PARTNERSHIP
62

KEY ELEMENTS TO PARTNERING

• Long term commitment
• Trust
• Shared vision

SUPPLIER SELECTION AND EVALUATION

• Survey stage
• Catalogues,Advertisements,brochers etc..
• Enquiry stage
• Negotiation and selection stage
• Experience stage
Supplier sourcing
 SUPPLIER RATING
65

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.
SUPPLIER PARTNERSHIP
SUPPLIER RATING FORMAT 66
 RELATIONSHIP DEVELOPMENT
For establishment of supplier relationship, the following 67

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
Quality Circles

Quality Circle and Quality control circles 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.
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 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.

 Quality circle enable their member to exercise their

hidden talents for tackling challenging tasks.
OBJECTIVE

 Change in Attitude.

 Self Development

 Development of Team Spirit

 Improved Organizational Culture

PROCESS OF OPERATION
 Problem identification

 Problem selection

 Problem Analysis

 Generate alternative solutions

 Select the most appropriate solution

 Prepare plan of action

 Present solution to management circle members

 Implementation of solution
Benefits and Limitations of
Quality Circles
Advantages of quality circles:
 Increase Productivity
 Improve Quality
 Boost Employee Morale

Disadvantages/problems with QC
 Inadequate Training
 Unsure of Purpose
 Not truly Voluntary
 Lack of Management Interest
 Quality Circles are not really empowered to make decisions.