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Chapter 3
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Definition of TQMISO 9000 defines TQM as amanagement approach of anorganization, centered on quality,
based on participation of all itsmembers and aiming at long termsuccess through customer
satisfaction and benefits to themembers of the organization andto the society.
TQM is a management approach
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Definition of TQMBritish Standard Institution (BSI),UK Management philosophy andorganization practices that aim to
harness the human and materialresources of an organization.
Other names to represent TQM
Continuous quality improvementTotal quality
Total business management
Organization wide quality
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Elements of TQM
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ea ers p or
TQMHigher echelons of managementhas an important role to play forTQM to be implemented.
Management is solely responsiblefor the success of TQM as it isresponsible for selecting people,
forming teams, providingresources and establishing thesystem in the organization.
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The Deming WayDr. William Edwards Deming
Born 14 Oct 1900
Sioux City, Iowa,
BSEE-Wyoming 1921
MS-Colorado-1925
PhD-Yale-1928
Mathematical Physics
1900-1993
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Demings 14 Points for TopManagement
1. Create constancy of purpose forImprovement of products andservices.
- constant quest for innovation,improvement of processes,products and services.
2. Adapt new philosophy.- eliminations of wastes, delaysand radically changing the work
culture. i.e. JIT, Demings 14
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Demings 14 Points for TopManagement
3. Cease dependence on MassInspection.
- doing things right and doing it
the first time would reduce thedependence on inspection andwill later on be eliminated. TQM
aims at elimination of inspectionthrough prevention.
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Demings 14 Points for TopManagement
4. End the practice of awardingbusiness on the price tag alone.
- Selection of supplier should be
base on the following: Quality
Price
Delivery Service
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Demings 14 Points for TopManagement
5. Constantly improve the systemof production and services.
- constant improvement of
processes.
- practicing Kaizen philosophy(continuous improvement)
6. Institute training.
- Management needs training to
learn about the organization, all the
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Demings 14 Points for TopManagement
7. Adopt and institute leadership
- Senior employees mustconduct themselves as leaders
rather than managers.Leader ManagerProactive Reactive
Coaches Finds Fault
Understands process Doesnt care to
understandMoves around Sits in his chair
Improves processes Maintains process
Communicates
frequently
Communicates rarely
Seeks suggestions Questions
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Demings 14 Points for TopManagement
8. Drive out fear.
- Encourage employees tosuggest improvements and new
ideas and ask about the existingprocess.
- Fear is detrimental to
improvement of processes.
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Demings 14 Points for TopManagement
9. Breakdown barriers betweenstaff areas.
- Encourage the various teams
to communicate with each other.
10. Eliminate slogans,
exhortations and targets for thework force.
- To improve productivity, the system is to
be improved which is the responsibility of
the management.
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Demings 14 Points for TopManagement
11. (a) Eliminate Numerical Quotafor the work force
- Setting targets may affect the
quality of workmanship.
- It forces the worker to ignorequality and concentrate on
quantity.- Instead, standards for qualityworkmanship could be
prescribed.
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Demings 14 Points for TopManagement
11. (b) Eliminate numerical goalsfor people in the Management
- Setting goals without the
necessary resources does notwork.
12. Remove barriers that robpeople of pride of workmanship.
- Establishing the right processes andproper system for quality
management will lead to carrying out
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Demings 14 Points for TopManagement
13. Encourage education and self-improvement for everyone.
- For improving skills or
updating of knowledge
- will improve an employeesability which will be beneficial to
the organization
0 S i f
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10 Strategies for TopManagement
1. Proactive management.
Proactive Management NeedsProper System
- Orderly system, clear roles andresponsibilities, official organizationstructure, set procedures and laid
out system of recording in order toprevent or identify a problem beforeoccurring.
TQM Calls for ProactiveManagement
10 S i f T
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10 Strategies for TopManagement
2. Adventurous and bold changemanagement.
Nobody likes Change
- People concerned should beconsulted before change andexplained in detail how the proposed
change is going to be beneficial tothem.
- Processes should be changedproactively by the top management
in an adventurous manner.
10 S i f T
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10 Strategies for TopManagement
Change is Essential
-Rethinking and restructuring of theorganization in order for them to be
receptive to the needs of the customers.- Change management is important in aTQM environment and is crucial forcontinuous process improvement ofprocesses and the organization.
a. Be adventurous adventurous decision-
making and high self-esteem among thesenior management is required
b. Be bold Boldness, self-confidence orself-esteem to fi ht lethar amon the
10 St t i f T
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10 Strategies for TopManagement
Roles of CEO for Adventurousand Bold Change Management
-The primary responsibility for
adventurous and bold managementlies with the CEO.
- He should have his own boldinitiatives and also supportinnovative change managementinitiated by his employees.
- Confidence bestowed by the CEO
will help them in achieving
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10 Strategies for TopManagement
3. DIRFT Do it right the first time
Taking Right Decision
Plan the decision weigh the pros
and cons
Foresee the impact of the decisionon the organization
Take the opinion of the rightpeople
Involve the concerned (employeeswho will be affected by thedecision)
10 St t i f T
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10 Strategies for TopManagement
Basic requirements of DIRFT
According to Crosby, topmanagement should:
1. Define the requirement for eachemployees
2. Provide wherewithal (resources) to
achieve the requirement3. Keep on motivating and
encouraging the employees.
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10 Strategies for TopManagement
Basic requirements of DIRFT
According to Deming:
a. Right the first time every time
every activity in the organizationshould always incorporatepreventing errors, defects,hassles, demotivation ofemployees, etc.
b. Set right goals Vision, missionand goals of an organization
c. Select right personnel personnel
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10 Strategies for TopManagement
Basic requirements of DIRFT
d. Establish right processes establishment of proper guidelines
and train the employees toperform accordingly.
e. Choose durable raw materials good quality raw materials whichdoesnt call for an inspection.
f. Choose right machinery sincemachinery is expensive, it should
be selected carefully through a
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10 Strategies for TopManagement
4. Continuous PreventiveAction
Corrective Action is a Post-Mortem
Prevention is better than
cure One shot prevention is not
good enough.
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10 Strategies for TopManagement
5. Care for Little Things andAccumulate Gains
Caring for small things Communicate with Junior
Employees
Keep on accumulating
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10 Strategies for TopManagement
6. Ensure EconomicPerformance
Importance of EconomicPerformance
Quality should Increase
Productivity also Talk about success in
Economic Performance
Stakeholders will understand
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10 Strategies for TopManagement
7. Management by WalkingAround (MBWA)
MBWA was postulated by TomPeters. It can be defined asthe unannounced visit of theCEO to the various work spots
for getting direct and firsthand information from theemployees, the customers and
the suppliers.
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10 Strategies for TopManagement
3 Major Activities duringMBWA
1.Listening
2.Teaching
3.Facilitating
Barriers to PracticingMBWA
- it appears to violate the
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10 Strategies for TopManagement
Advantages of MBWA- helps the organization toconsolidate talents, wisdom of
the employees, customer andsuppliers.
- helps the CEO remain intouch with the people,
customers and suppliers andalso make them feel importantwhich results to attracting
more business, improvingualit of su liers
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10 Strategies for TopManagement
8. Measure for Success Measure 3 Ps: Process,
Personnel and Product
Pro
duct
Pro
duct
Proc
ess
Proc
ess
PersonnelPersonnel
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10 Strategies for TopManagement
PDSA for Measurement popularized by Deming:
PPlan for Measuring SuccessDDo Phase of Measuring
SStudy Phase of Measurement
AAct Phase of Measurement
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10 Strategies for TopManagement
Some common measures forthe service industries are:
1. Planned delivery and actual
delivery time2. Repeat customers
3. Perception of the customers
about quality4. Perception amongst
customers about competitors
5. Productivity
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10 Strategies for TopManagement
6. Revenue generated peremployee
7. Revenue vs. Expenditure
ratio8. Return on Investment
9. Customer Complaints
10. Rejects in process
11. Rejects at customer site
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10 Strategies for TopManagement
9. Never Rest on PastLaurels, Continue to
Improve The Tale of the Tortoise
and Rabbit
The need to ImproveContinuously
1. Cutting costs by doing
things right, the first time
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10 Strategies for TopManagement
10. Build a VirtualOrganization
Virtual Integration whatever sub-units,components / materials,
fixtures, etc. needed forthe manufacturing aproduct are all
manufactured by the same
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10 Strategies for TopManagement
Requirement for VirtualEnterprise:a. Identify the most critical part/s
b. Identify the other parts
c. Develop / Identity vendors forthe other parts
d. Continuously increase sub-contracting