1. Fundamentals of Total Quality Management.

2. Total Quality Management Model.

3. Top Management’s Role in Total Quality Management.

4. Strategic Quality Planning.

5. Quality Culture.

PRESENTATION OUTLINE

Total Quality Management is the systematic and integrated approach of attaining customer satisfaction at minimum cost through continuous improvements in all areas of an organization’s operations, products and services.

Ranjit Singh Malhi

WHAT IS TOTAL QUALITY MANAGEMENT?

1. Customer-oriented.

2. Organization-wide.

3. Strategic Focus.

4. Change in Corporate Culture.

5. Process Management.

6. Continuous Improvement.

MAIN FEATURES OF TOTAL QUALITY MANAGEMENT

A Total Quality Organization is one which continuously delights its customers in an efficient manner by integrating its various systems, particularly the management system, social system (people) and the technical system (work processes), into a functional whole.

Ranjit Singh Malhi

WHAT IS A TOTAL QUALITY ORGANIZATION?

1. Quality improvement begins with top management’s visible commitment and explicit involvement.

2. Quality is defined and judged by the customers.

3. Quality involves doing the right things right, first time, every time.

10 FUNDAMENTAL PRINCIPLES OF QUALITY

4. The ultimate creators of quality products and services are people.

5. A Culture of Quality is necessary for creating and sustaining a work environment that is conducive to long-lasting quality improvement.

6. The system for improving quality is prevention of errors and defects, not inspection.

7. Quality is process improvement and Management by Fact.

8. TQM organizations are essentially learning organizations.

9. Quality is teamwork.

10. Quality improvement is a never-ending process.

To compete and win, we must redouble our efforts – not only in the quality of our goods and services, but in the quality of our thinking, in the quality of our response to customers, in the quality of our decision-making, in the quality of everything we do.

E. S. Woolard Ex-CEO E.I. DuPont

THE RACE TO QUALITY IMPROVEMENT

1. Do you know clearly what are your customers’ key requirements?

2. Are your customers’ requirements being met?

3. Do you have a clear mission and verifiable corporate quality goals?

IS YOUR ORGANIZATION QUALITY-DRIVEN?

4. Do you have challenging and verifiable performance standards?

5. Are fellow employees treated as customers?

6. Do you measure performance?

7. Are recognition and reward systems based on quality work or job performance?

8. Are your frontline staff empowered to serve customers well?

9. Is your corporate culture conducive to continuous quality improvement?

10. Are your employees provided with adequate and relevant training?

1. Social System

Corporate culture

Personal Quality

Employee participation and development

Teamwork

Empowerment

Reward and recognition system

Communication

TQM : THE SYSTEM MODEL

2. Technical System

Technology

Work processes

Decision-making processes

Job definition and responsibilities

3. Management System

Strategic quality planning

Leadership

Policies

Organizational structure

Managerial control

TOTAL QUALITY MANAGEMENT MODEL

• ISO 9000

• Process Reengineering

• Technology

• Quality Improvement Projects

• Measurement & Evaluation

• Corrective Action

Human Resource Management

• Personal Quality

• Empowerment

Process Improvement

• Training

• Teamwork

• Reward & Recognition System

• Open & Honest Communication

• SWOT Analysis

• Customer Survey

• Benchmarking • Mission

Statement

Strategic Quality Management

• Corporate Goals

• Corporate Values

• Departmental Purpose Analysis

• Corporate Quality Council

• Allocating Resources for QIPs

• Monitoring Quality

• Role Modelling

Continuous Improvement

Quality Management

System Top Management's

Visible Commitment

SELF-RENEWAL (Physical, Mental, Spiritual, Social) CUSTOMER-ORIENTED

QUALITY CULTURE

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ORGANIZATIONAL QUALITY PLAN

• Mission Statement & Quality Goals • Strategies & Quality Indicators • Quality Improvement Projects

IMPLEMENTATION

• Process Management • Coordination • Communication

REVIEW PROGRESS

• Measurement • Reporting Results • Corrective Action

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GETTING ORGANIZED

• Top Management’s Commitment • Organizational Quality Awareness • Quality Management Structure

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ORGANIZATIONAL DIAGNOSIS

• SWOT Analysis • Key Business Processes • Benchmarking • Quality Improvement Opportunities

TOTAL QUALITY MANAGEMENT MODEL

1. Management is responsible for 80-85% of all quality problems.

2. Actions of employees greatly depend on top management’s attitude towards quality.

3. Top management determines the various systems in which people work.

IMPORTANCE OF TOTAL QUALITY LEADERSHIP

1. Model the Way

Find your voice by clarifying your personal values

Set the example by aligning actions with shared values

2. Inspire a Shared Vision

Envision the future by imagining exciting and ennobling possibilities

Enlist others in a common vision by appealing to shared aspirations

FIVE PRACTICES OF EXEMPLARY LEADERSHIP

3. Challenge the Process

Search for opportunities by seeking innovative ways to change, grow, and improve

Experiment and take risks by constantly generating small wins and learning from mistakes

4. Enable Others to Act

Foster collaboration by promoting cooperative goals and building trust

Strengthen others by sharing power and discretion

J. M. Kouzes & B. Z. Posner

5. Encourage the Heart

Recognize contributions by showing appreciation for individual excellence

Celebrate the values and victories by creating a spirit of community

1. Top Management’s Visible Commitment

Form high-powered steering committee to lead the quality initiative

Establish quality improvement as a major corporate goal

Benchmark world-class quality companies

Conceive and communicate the strategic quality plan

Proper quality management structure

TOP MANAGEMENT’S ROLE IN TQM

Allocate adequate resources for quality improvement projects

Undergo quality training and cascade it down the organization

Walk the talk

Monitor quality performance

Recognize and reward superior quality performance

Federal Express, Rank Xerox, Honda Motor Company

2. Strategic Quality Planning

SWOT Analysis

Clear, compelling and shared vision

Specific and verifiable key quality goals

Strategies for attaining vision and quality goals

Improving key business processes

General Electric, Sony, Philip Morris

3. Customer-Driven Organization

Undertake market research (opinion surveys and focus groups) to determine customers’ requirements

Prioritize needs and expectations of customers

Create customer-friendly and hassle-free service delivery systems

Act quickly on customers’ complaints

Continuously listen to customers

Nordstrom, Rubbermaid, Walt Disney, Marriott

4. Excellent Work Processes

Identify and improve major work processes

Eliminate unnecessary work procedures

Build quality into work processes

3M, Dell Computer, Motorola, Duke Power

5. Quality Culture

Customer-focus

Doing the right things right the first time and every time

Open and honest communication

Teamwork

Basing rewards on performance

Procter & Gamble, Hewlett-Packard, General Electric, Nordstrom

6. Teamwork

Break down departmental barriers

Establish cross-functional quality improvement teams

Quality Circles

Ford, Saturn Corporation, General Electric, Boeing, 3M

7. Motivating and Empowering People

Hire the right people

Provide relevant and adequate training

Encourage employee participation (Quality Circles and Quality Improvement Teams)

Push decision making to the lowest practical level

Employee suggestion schemes

Challenging jobs

Regard employees as internal customers

Provide specific and timely performance feedback

Federal Express, Dana Corporation, Toyota, Milliken, General Electric, Wal-Mart, Johnson & Johnson

8. Performance Management System

Establish customer-oriented, challenging and verifiable performance standards

Mutually agreed upon by management and employees

Measure performance

Take corrective action

General Electric, Federal Express, Motorola

9. Rewards and Recognition

Clear recognition and reward criteria

Link rewards directly with performance

Catch people doing things right

Recognize both individual and team achievements

Monetary benefits (bonuses, pay increase, profit sharing)

Non-monetary recognition (congratulatory notes, mementos, special lunches or dinners)

Exxon Chemicals Ltd. UK, Rank Xerox

10. Learning Organization

Training and retraining

Start with senior management and cascade down the organization

Encourage risk-taking and toleration of mistakes

Promote rapid sharing of information

Federal Express, Singapore Airlines, Motorola

11. Being Innovative, Responsive and Adaptive

Anticipate and adapt quickly to changing situations

Encourage employees to challenge the status quo

Treat information as the main strategic advantage

Southwest Airlines, IBM, 3M, Samsung

12. Modelling the Way

Honest, competent and inspiring

Walk your talk

Open to constructive criticism

Agent of change

Lifelong learner

Herb Kelleher, Sam Walton, Jack Welch

Organizational Vision and Mission Statement

Key Quality Goals

Strategies for attaining Vision and Quality Goals

Serving customers’ real needs

STRATEGIC QUALITY PLANNING

McDonald’s vision is to be the

world’s best quick service restaurant

experience. Being the best means

providing outstanding quality,

service, cleanliness, and value, so

that we make every customer in

every restaurant smile.

McDonald

EXAMPLE OF AN EFFECTIVE 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.

Amazon

EXAMPLE OF AN EFFECTIVE VISION STATEMENT

Our mission is to provide any customer a means of moving people and things up, down, and sideways over short distances with higher reliability than any similar enterprise in the world. Otis Elevator To deliver a high-quality pizza, hot, within 30 minutes, at a fair price.

Domino’s Pizza

EXAMPLES OF MISSION STATEMENTS

A Quality Culture is a system

of shared values, beliefs and

norms that are conducive for

creating a Total Quality

Organization.

WHAT IS A QUALITY CULTURE?

Customer focus

Doing the right things right the first time

Open and honest communication

Teamwork

Employee involvement and empowerment

CORE VALUES OF A QUALITY CULTURE

Creative and fact-based problem solving

Continuous improvement

Building quality into work processes

Basing rewards and promotions on quality work

Responding positively to change

1. Recognizing the need for change

Compelling reasons for culture change

Broad desired outcomes

Leaders should create a sense of urgency

Formulate a compelling and clear organizational vision

STEPS IN CREATING AND SUSTAINING A QUALITY CULTURE

2. Diagnosing existing organizational culture

How is quality viewed?

Current values, beliefs and norms to be retained

Current values, beliefs and norms to be changed

Involve all stakeholder groups (managers, employees, customers)

3. Determining the desired culture which supports organizational vision and strategy

Specify acceptable and unacceptable behaviours

Close gaps between current and desired organizational culture

Ensure new culture is aligned with organizational vision and strategy

4. Communicating the desired culture to all organizational members

Few and compelling messages

Centred upon organizational vision, goals and core values

5. Modelling of desired behaviour by leaders

Leaders model desired behaviour in what they say and do

6. Conducting appropriate training to imbibe new culture

Start with top management and cascade down the organization

Related to actual work performed by employees and desired culture

7. Reinforcing the desired behaviour

Recognition and reward systems

8. Evaluating progress towards desired culture

Continually monitor and evaluate cultural change efforts

Take corrective action (if necessary)