Assignement Total Quality Management

AssignmentTOTAL QUALITY MANAGEMENT

Shabzada Rizwan AhmedRegistration No 1052-214004

MBA Project Management4th Winter Quarter 2015

PRESTON UNIVERSITY ISLAMABAD

PRESTON UNIVERSITY

ASSIGNMENTTOTAL QUALITY MANAGEMENT

EMBA Program

DISTANCE LEARNING ASSIGNMENT

TOTAL QUALITY MANAGEMENT

Quarter: Winter 2015, Deadline for Submission of Assignment: February 15, 2015 Solve all problems given below. All pages references pertain to your textbook.

Q.1 Page 19 Question # 1 -7

Q.2 Page 45 Question # 2 – 7








Q.10 Page 319 Question # 10.6

Q.11 Page 344 Question # 11. 3

Q.12 Page 372 Question # 12.2

Book: Total Quantity Management

By: Joel Ross

MBA Project Management Page 2 of 37


Question No 1

Compare the Bald ridge Award criteria to the principles promoted by the Deming and Crosby. What are the similarities and differences?

ANSWER

BALDRIDGE AWARD CRITERIA

The requirements of the Criteria for Performance Excellence are embodied in seven categories, as follows:

1. Leadership:

The Leadership category examines how your organization’s senior leaders’ personal actions guide and sustain your organization. Also examined are your organization’s governance system and how your organization fulfills its legal, ethical, and societal responsibilities and supports its key communities.

2. Strategic Planning:

The Strategic Planning category examines how your organization develops strategic objectives and action plans. Also examined are how your chosen strategic objectives and action plans are implemented and changed if circumstances require, and how progress is measured.

3. Customer Focus:

The Customer Focus category examines how your organization engages its customers for long-term marketplace success. his engagement strategy includes how your organization listens to the voice of its customers, builds customer relationships, and uses customer information to improve and identify opportunities for innovation.

4. Measurement, Analysis, and Knowledge Management:

The Measurement, Analysis, and Knowledge Management category examines how your organization selects, gathers, analyzes, manages, and improves its data, information, and knowledge assets and how it manages its information technology. He category also examines how your organization uses review findings to improve its performance.

5. Workforce Focus:

The Workforce Focus category examines your ability to assess workforce capability and capacity needs and build a workforce environment conducive to high performance. The category also examines how your organization engages, manages, and develops your workforce to utilize its full potential in alignment with your organization’s overall mission, strategy, and action plans.



6. Operations Focus:

The operations focus category examines how your organization designs, manages, and improves its work systems and work processes to deliver customer value and achieve organizational success and sustainability. Also examined is your readiness for emergencies.

7. Results:

The results category examines your organization’s performance and improvement in all key areas—product and process outcomes, customer-focused outcomes, workforce focused outcomes, leadership and governance outcomes, and financial and market outcomes. Performance levels are examined relative to those of competitors and other organizations with similar product offerings.

PRINCIPLES OF DEMING

He set out his 14 points for management, which we have paraphrased here:

1. Create constancy of purpose towards improvement Replace short-term reaction with long-term planning.

2. Adopt the new philosophy The implication is that management should actually adopt his philosophy, rather than merely expect the workforce to do so.

3. Cease dependence on inspection If variation is reduced, there is no need to inspect manufactured items for defects, because there won't be any.

4. Move towards a single supplier for any one item5. Multiple suppliers mean variation between feed stocks6. Improve constantly and forever

Constantly strive to reduce variation. 7. Institute training on the job

If people are inadequately trained, they will not all work the same way, and this will introduce variation.

8. Institute leadership Deming makes a distinction between leadership and mere supervision. The latter is quota and target-based.

9. Drive out fear Deming sees management by fear as counter- productive in the long term, because it prevents workers from acting in the organization’s best interests.

10. Break down barriers between departments Another idea central to TQM is the concept of the 'internal customer', that each department serves not the management, but the other departments that use its outputs.

11. Eliminate slogans12. Another central TQM idea is that it's not people who make most mistakes - it's the

process they are working within. Harassing the workforce without improving the processes they use is counter-productive.

13. Eliminate management by objectives Deming saw production targets as encouraging the delivery of poor-quality goods.



14. Remove barriers to pride of workmanship many of the other problems outlined reduce worker satisfaction.

15. Institute education and self-improvement16. The transformation is everyone's job

Deming has been criticized for putting forward a set of goals without providing any tools for managers to use to reach those goals (just the problem he identified in point 10). His inevitable response to this question was: "You're the manager, you figure it out."

PRINCIPLES OF CROSBY:

Crosby also developed a 14-point program, which is again more practical than philosophical. It provides managers with actual concepts that can help them manage productivity and quality.

1. Management Commitment: Make it clear that management is committed to quality. 2. Quality Improvement: Form quality improvement teams with representatives from each

department.3. Quality Measurement: Determine where current and potential quality problems lie.4. Cost of Quality: Evaluate the cost of quality and explain its use as a management tool. 5. Quality awareness: Raise the quality awareness and personal concern of all employees. 6. Corrective action: Take actions to correct problems identified through previous steps.7. Zero Defect Planning Establish a committee for the zero defects program.8. Supervisor training: Train supervisors to actively carry out their part of the quality

improvement program. 9. Zero Defect day: Hold a ‘zero defects day’ to let all employees realize that there has been

a change. 10. Goal setting: Encourage individuals to establish improvement goals for themselves and

their groups.11. Error-Cause removal: Encourage employees to communicate to management the

obstacles they face in attaining their improvement goals. 12. Recognition: Recognize and appreciate those who participate. 13. Quality Councils Establish quality councils to communicate on a regular basis. 14. Do-it-over-again: Do it all over again to emphasize that the quality improvement

program never ends.

Comparison of the Deming Prize and Baldrige Award

Topic Baldrige Award Deming Prize

Definition of Quality

“customer-driven quality” it views quality as defined by the customer

“conformance to specifications” it views quality as defined by the producers

Primary Focus customer satisfaction and quality statistical quality controlOverall Approach quality of management management of quality

Purposepromote competitiveness through total quality management

promote quality assurance through statistical techniques

Types of Organization

manufacturing, service and small business

essentially private or public manufacturing



Orientation 60% result, 40% process 60% process, 40% resultsScoring Weight different weight for each criteria equal weight in 10 criteria

Consideration less concernconcern in productivity, delivery, safety, and environment

Information Management

heavily concern less concern

Continuous of the award

N/A Japan Quality Control Medal

Winners Maximum of two per category All firms meeting standardScope U.S. firms only Firms for any country

Applications $2500 and 75 pages packet1000 pages and one year working with consultant from the union of Japanese Scientist & Engineers

Grading time six months one year

Grading Criteria1. Leadership of top-ranking managers policy management control system

& quality improvement process

allocation and utilization of resources

responsibility to society unique and creative

leadership technique

1. Policy and Objectives pursued for management

quality & QC method of establishing

quality justifiability and

consistency of policies review of policies and the

result achieved relationship between

policies and long term & short term planning

2. Information and Analysis utilization of analysis

technique or system utilization of information

about product quality and servicing quality

customer data and analysis analysis of quality and data

of subcontractor and distributor or sales agent

2. Organization and its Management

explicitness of the scopes of authority and responsibility

interdivisional cooperation committees and their

activities utilization of staff utilization of QC Circle

activities QC diagnosis

3. Quality of Strategy Planning operation target and strategy

target function of planning quality improvement plan unique and innovative

planning for strategy

3. Education and dissemination education program and

results degrees of understanding

of QC teaching of statistical

concepts and methods



grasp of the effectiveness of QC

QC circle activities system of suggesting ways

of improvements and its actual conditions

4. Utilization of Human Resource control and operation quality consciousness and

participation of employees training and education

concerning quality personnel assessment,

motivation, award system innovative strategy

concerning utilization of human resource

4. Collection, Dissemination and Use of Information on Quality

collection of external information

transmission of information between divisions

speed of information transmission

data processing, statistical analysis of information and utilization of the results

5. Quality Assurance of Product and Servicing

reflection of customer’s opinion on product and servicing

design and development of new product and new servicing

measurement, standardization, data system

engineering, audit, recording safety, health and

sanitation, ,environment approach to quality

assurance of product and servicing

5. Analysis selection of key problems

and themes propriety of the analytical

approach utilization of statistical

methods linkage with proper

technology quality analysis, process

analysis utilization of analytical

results assertiveness of

improvement suggestions

6. Result of Quality Assurance of Product and

Servicing reliability and achievement

of product and servicing reduction of scrap, rework,

6. Standardization systematization of

standards method of establishing,

revising, and abolishing standards and their



rejection, concerning product and servicing

reduction of complaint and claim suit concerning quality

innovative index and economic gain for quality improvement

outcome utilization of statistical

methods contents of the standards accumulation of

technology utilization of standards

7. Customer Satisfaction quality of product and

servicing from customer’s viewpoint

comparison of competitiveness of product and servicing

customer servicing and countermeasure for complaint

assurance from customer’s viewpoint

technique to grasp customer satisfaction

7. Controlsystem for the control of quality and related matterscontrol items and control pointsutilization of such statistical control methods as control charts and other statistical conceptscontribution to performance of QC circleactual conditions of control activities

8. Quality Assurance procedure for the

development of new products and services

safety and immunity from product liability

customer satisfaction process design, analysis,

control and improvement process capability instrumentation, gauging,

testing and inspecting equipment maintenance and

control of subcontracting, purchasing, and services

8. Results measurement of results substantive results in

quality, services, delivery time, cost, profits, safety environments

intangible results measures for overcoming

defects

9. Planning for the Future grasp of the present state

of affairs and the concreteness of the plan

measures for overcoming defects

plans for further advances linkage with the long term

plans



Question No 2

Choose a manufacturing company and a service company. Identify a key activity for improving quality?

ANSWER:

A Quality System is the organizational structures, processes, procedures and resources used to manufacture pharmaceutical products in accordance with applicable regulations. This entails quality planning, quality control, quality assurance and quality improvement for achieving consistent product quality. The objective of a Quality System is to achieve product realization, establish and maintain a state of control and facilitate continual improvement across the different lifecycle stages. The major components of a products lifecycle are pharmaceutical development, technology transfer, commercial manufacturing and product discontinuation.

Key Elements to a Quality System in a manufacturing company The elements of a Pharmaceutical Quality System, as described in International

Conference on Harmonization (ICH) Q10 Pharmaceutical Quality System Guideline, outline the effective quality systems for the pharmaceutical industry. The systems are designed to be used throughout each stage of the products lifecycle. The Quality System consists of these four key elements: Process Performance and Product Quality Monitoring, Corrective Action and Preventive Action (CAPA), Change Management, and Management Review of Process Performance and Product Quality.

1. Process Performance and Product Quality Monitoring System A process performance and product quality monitoring system ensures that pharmaceutical companies are operating in a state of control. The system should provide assurance that the processes and controls produce products with safety, efficacy and quality. These systems include risk management, statistical tools, quality control, process excellence tools, supplier/material management, internal/external source review and validation.An example of a process performance and product quality monitoring system are Key Performance Indicators (KPIs). The following case study illustrates how one company benefitted from outsourcing a quality systems assessment to determine the state of their Quality Systems.

2. Corrective Action and Preventive Action System Once a company has a system in place that identifies and monitors gaps in its system, a systematic approach should be taken to handle those issues. This leads us to the next element of the Quality System, Corrective Action and Preventive Actions (CAPAs). CAPAs are the systematic investigation of the root cause of non-conformities in an effort to mitigate the issue or prevent their recurrence. In recent years regulatory agencies have focused heavily on CAPAs during regulatory inspections.A company must have a robust CAPA system to ensure regulatory compliance, organizational effectiveness and operational efficiencies. A CAPA should address areas of nonconformance and strategies to stop issues from recurring. The three critical elements of a successful CAPA system include development of a proper CAPA system, monitoring and analysis to ensure that the CAPA system is compliant and performing appropriately and a continuous improvement plan to eliminate or mitigate nonconformities or the potential of nonconformity. So how does a company develop a CAPA system?



Developing a CAPA SystemAs a regulatory requirement, the CAPA process must consist of the following key

elements: Having documented procedures in place to define how an organization will track the

records; Performing an investigation to determine the root cause once a nonconformance has

been identified; Identifying the corrective and/or preventive actions after the root cause has been

determined; Having an established and approved action plan Implementing the action plan; Having actions that support continuous improvement within the CAPA; Having mechanisms in place to allow monitoring and analyzing of all CAPAs; Completing all documentation and proper notifications; Evaluating the effectiveness of the actions performed after implementation. These steps are vital for a CAPA System to be successful. The content of the CAPA should address the nonconformity; the actions must be documented and recorded; and the actions should be monitored and tracked for common root causes. The goal of the CAPA System is to show continuous improvement within the defined processes that govern the operations of an organization.

Monitoring and AnalysisIn order to assure that the CAPA System is compliant and performing appropriately, the CAPA System must have a monitoring process. To effectively monitor the process, a company must select appropriate measurements to show that the corrective action always addresses the root cause of the problem.

One way to assure that the established CAPAs are appropriate is to have KPIs in place, as noted above in the first element of the Quality System. KPIs will alert management of the effectiveness of the CAPAs and also determine if additional actions are needed. The running of KPIs against the data may be a continuous or periodic process depending on the source/availability of the data. The overall monitoring process should be routinely reviewed to assure continued suitability.There are several tools that can be used for the measurement and analysis of the data against established parameters. The analysis will allow a manufacturer to identify nonconformity (or potential nonconformity), and identify areas that may need further investigation. In this way the manufacturer is able to fully establish a preventive action process, allowing them to address a potential problem before impacting the product. The analysis can be performed using several methods, such as analytical tools, a team of experts or process owners.The use of statistical tools will help the manufacturer to identify any sources of variation, determine if the CAPA has truly remedied the problem, and potentially assist in the decision-making process.

Continuous ImprovementThe purpose of making continuous improvements to a CAPA process is to

eliminate or mitigate nonconformity or the potential of nonconformity. There have been many observations issued by regulatory agencies to manufacturers that state there is a



failure to establish a verification process to show the adequacy of the established CAPAs. Therefore, in order to establish CAPAs that will address nonconformity, a strong investigation process must be established, which includes a strong root cause analysis of the problem.

3. Change Management System. A plausible definition for change management is the act of handling or controlling something that passes from one state to another. Any time a change to a Quality System is being considered, there are certain steps that must be taken in order to determine the risk involved with the change and how it may impact the product. These steps are called the Change Management system, the third element of the Quality System. This system ensures continual improvement is undertaken in a timely and effective manner while providing assurance that the improvement does not adversely affect the quality of the product. When a change is required, the change management system should address the risk of the change, the safety, and the performance. The change management system should include the quality risk assessment, justification for the change and a proper evaluation by appropriate subject matter experts. After implementation, the effectiveness of the change, and its regulatory impact, should be assessed by qualified individuals.

4. IV. Management Review of Process Performance and Product QualityThe fourth element to the Quality System is Management Review of Process Performance and Product Quality. The management review system assures the process performance and product quality are managed properly throughout the products lifecycle and ensure that opportunities for improvement, such as training, are identified. Regulatory inspections and audit result are evaluated in this system as well as product quality reviews, customer complaints and CAPA effectiveness.

Regulatory agencies take a hard approach to assessing the compliance of Quality Systems within a pharmaceutical company to ensure the safety and efficacy of the products being produced. If the FDA determines that a company has a poor quality system in any way, they will inform that company and the public of all the details.

Key Elements to improving Quality in a service companyCustomer experience and fulfillment process

Telling your customers the kind of experience they will get when they do business with you. Providing a friendly environment Making your customers feel welcome and comfortable. Understanding your customers’ needs Helping your customers decide what to buy so they get the best value Managing the sales and purchase transaction well Handling performance problems and customer complaints well Following up to check that customers are happy

Effective staff management Helping staff understand the kind of experience customers are looking for Knowing the type of person you need to hire to deliver that experience Hiring that kind of person



Introducing new staff to your company, products, services and systems Ensuring all staff have the skills and tools to provide a great customer experience Understanding each employee’s strengths and weaknesses Looking after your staff so they are willing and able to look after the customer Ensuring staff understand and meet the needs of their internal customers

Managing results to drive improvement Making customer retention your primary aim Understanding staff performance directly affects customer retention Monitoring the performance of your suppliers Monitoring your company’s financial performance Using results to drive improvement Involving staff in improving the business

Effective leadership Having a vision, strategy and plans for your organization Ensuring everyone in the organization shares your vision Ensuring your policies processes and procedures enable your vision. Keeping abreast of developments in your industry and marketplace

Entering your customers’ world Knowing who you want to do business with and why Entering your customers’ world and learn what they value Identifying opportunities to add value Bringing the world of the customer into the workplace Using what you have learned to change the way you run your business Ensure staff put themselves in the customers’ shoes

Question No 3

How does information Technology affect organizational structure? Give an example of how information Technology can facilitate TQM.

ANSWER:

Effects of IT on TQM in Organization

Top management support The support of senior management is necessary both for the success of TQM and the

introduction of IT. Zuboff outlines how the introduction of a new IT intervention may generate some uncertainty within the workforce and how the support of senior management is vital in maintaining the continuous improvement process. On some occasions, the introduction of IT has created problems with the workforce and other members of the staff (Wilson, 1994), so top management has to be very cautious in this task and avoid contradictions between the new IT requirements and the TQM policy being followed at the time. If IT increases management control by top management, this needs to be applied without creating undue stress and concerns.



Customer relationship The development of IT may help to improve relationships with customers in several

ways. Bar-coding, product recognition systems and electronic point of sales are in wide use and increase the accuracy and speed of sales and lead to improved customer service. IT will also certainly enable organizations to reach customers who are geographically remote providing opportunities, in particular, for SMEs. Gilmore and Pine outlined how customization is also facilitated by IT. Rathnam et al. have analyzed the utility of IT to increase the coordination amongst customer support teams. Kauffman and Lally have developed a model to measure the benefits of customer access information technologies.

It is important that organizations understand the speed and extent of the shift to electronic commerce conducted between businesses, homes and countries and start to put into place the means of controlling such invisible processes. For example, companies can offer their products through the Internet, including explanations of the characteristics of the products, and clients can procure products and services through this means and feedback opinions about the characteristics of the products/services through the e-mail system (some examples can be found in Chandler, 1998). The results of a study by Stone et al. (1996) indicate that in the future, customers will increasingly seek to manage the relationship themselves; using new technologies and those companies need to prepare themselves for this.

Companies can also use these aspects of IT by undertaking customer surveys to obtain relevant and useful information. This information can be saved in electronic databases and be used for mail shots and targeting at specific products. However, this should not replace the actual systems of selling and collecting of customer information. At the present, there are only a minority of the population who have access to the Internet and amongst those who have such systems the capacity of many of hardware systems is not sufficient to support satisfactory use due to problems such as slowness, system compatibility, keeping the data up to date and lack of financial security. Consequently, the use of IT as a marketing system should be considered as a complement to enrich actual systems, and not as a substitute for existing survey methods. IT can also lead to efficiency in market analysis since the statistical systems required for this are too complex to apply with any degree of efficiency without computer aids. The increase in the capacity of calculation that computers provide should be used in order to develop more complex systems of analysis about consumer’s needs, expectations and behavior.

The information about customer needs and competitor's offerings is facilitated by IT. This should be made available for employees within company databases and in this way help to make improved decisions about new products and processes.

Supplier relationship As is the case with customers, IT systems can help to develop improved communication

links with suppliers through systems of electronic data interchange (EDI). The electronically transmission of data can be used to place orders, send product specifications, design details, etc., along with confirmation of invoices and paying for suppliers. Teague et al. outline how suppliers can be involved earlier in the design process by the use of IT. In some cases, companies can access the inventory systems of their suppliers and place orders automatically and there can also be access to production scheduling systems. Mukhopadhyay et al. report the considerable savings achieved by Chrysler using EDI systems between itself and suppliers. The study of Banerjee and Sriram shows that those organizations that have encouraged their vendors to use EDI, appear to have significantly improved organizational efficiencies. The research of Srinivasan et al Concluded that investments in information technology to support both the sharing of JIT schedules and the establishment of integrated information links are related to



significant reduction in the level of shipment discrepancies. Bakos and Brynjolfsson and Stump and Sriram argue that IT speeds up of the reduction in the number of suppliers used by an organization.

Another issue touched upon in the literature is that electronic transactions and their accompanying systems will re-configure how business organizations function and this, in turn, will impact on the development and advancement of TQM. Consequently, the necessary IT interactions between a company and its supplier should be analyzed in terms of how they can help the communication process between the parties, including access to databases, systems and the necessary integration and software interfaces.

Workforce management This is one of the areas in which IT systems have more controversial implications, in

particular, in terms of the changes in the role of shop floor employees and intermediate managers as a consequence of increased levels of automation. Although some authors (e.g., Business Week, 1984 and Bradley, 1989) claim that the number of levels of organizational hierarchy will decrease with the use of IT, others (Blau et al., 1976 and Pfeffer and Leblebici, 1977) consider that IT may increase the depth of hierarchies by reducing the delays and distortions introduced by the movement of information through the organization levels. Pinsonneault and Kraemer (1997) found that IT was associated with a decrease in the numbers of middle management in organizations with centralized decision authority but in organizations where decision authority was decentralised they increased. According to writers such as Attewell and Rule (1984), Haug (1977), Wilson (1994) and Zuboff (1982), IT may also reduce job satisfaction and diminish skill requirements by: reutilizing work, subdividing work into small, highly specialized and repetitive tasks, subjecting humans to machine control, replacing low-level clerical jobs with high-skill professional jobs and automating the more mundane tasks.

From this there are clear arguments both in favour and against IT applications leading to deskilling. Zuboff (1983) and Attewell and Rule (1984) report both sides of this, and it is difficult to determine which view predominates. There are also arguments (e.g., Walton, 1982) both in favour and against the view that IT increases workers' autonomy. These opposing views lie in two possible applications of IT (Eason, 1988). One of them is focused on the use of IT as an agent to control work processes, an argument defended by Beniger (1986) and Wilson (1994). This kind of application leads to deskilling and monitored jobs, with the usual results of higher productivity, increased control and command, and inflexibility. The other view is focused on the use of IT as an enabling mechanism. In this case, jobs are enriched and job satisfaction increases. The result of this is not necessarily higher productivity (although it would be unlikely to decrease), but it is expected that performance, employee initiative and flexibility will increase. These two kinds of IT implementation are sometimes applied simultaneously in companies, the first type impacts on clerical staff and the second on professional staff.

If the labour required is more intellectual, autonomous and less mechanical controlled as a result of the IT implementation, training become more important, and the content of this should reflect the new knowledge needs. When work becomes more intellectual, the argument put forward by quality management experts is that supervisors should function as coaches rather than giving subordinates' orders. On the other hand, if IT implies less autonomy and intellectual challenging jobs, this conflicts with a number of the TQM principles and practices (e.g. empowerment, trust and discretion, and team working, in particular, self managing workgroups). In any case, IT implies a change in the training requirements of the workforce. How organizations plan for this needs to be examined, in particular, the new roles which will be created should be analyzed with the aim of deciding if it is necessary to design a new organization structure.



Employee attitudes and behavior When new systems are introduced, based on IT, some organizational restructuring is

implied, and the natural resistance of employees to this change may reduce the level of commitment to company goals and objectives. The usual argument that IT applications will lead to a reduction in the number of employees has its protagonists (e.g., Jonscher, 1994 and Brynjolfsson et al., 1994), but there are others (e.g., Osterman, 1986) who claim that this may not be the case. Also, when IT implementation means deskilling and loss of worker autonomy it is likely that motivation will decrease. Wilson (1994) describes a situation where the conflict between the utilization of IT and the TQM program generated some ill-feeling amongst management and staff because the increase of information requirements demanded by top management through the new faster means of communications that IT enabled was contradictory with the demand for improved customer service that TQM implies. On the other hand, when IT is used as an enabler to eliminate boring, dirty and hazardous jobs, job satisfaction increases. In any case, the change in workforce attitudes that may occur after the introduction of IT needs to be considered in order to prevent a decrease in factors such as loyalty to the organization, pride in work, ability to work with employees from other departments, job satisfaction, and stress.

A positive effect of IT is that they help to share information among different departments and functions. However, the implementation of IT does not mean that people will be more disposed to share information; if they think that they have reasons to believe that this will not be in their best interests then this will not happen. A strong emphasis in the need for the sharing of information should be made if an organization wishes to make the best use of shared databases.

Product design process The capacity to innovate increases with the use of IT, CAD technologies are a

fundamental aid in the design process because, using CAD the design of products, according to consumers’ needs, is faster and the innovation can be greater. Moreover, an effective new product design and development process requires information from different departments (production, marketing and R&D) and IT may aid the effective and speedy transmission of this information. Hameri and Nihtila (1997) report a case study in which the design projects involved numerous teams from various locations. Those Web-based applications in new-product development efforts provided the effective media for communicating and disseminating information.

IT is also useful in Design of Experiments (Mezgar et al., 1997), Failure Mode and Effects Analysis (Webber, 1990) and QFD (Rangaswamy and Lilien, 1997 and Zhang et al. 1996). In all these cases, IT does not change the way to apply these quality tools and techniques, but it helps to facilitate a more complete use of all their possibilities and eases their application.

Process flow management IT has been found useful in the task of process flow management. They assist the

maintenance function through the use of automated systems to detect the need for machine maintenance and diagnose what needs to be done; this can be carried out at allocation remote from the machine (Dilger, 1997; Krouzek, 1987). Automation helps to reduce process variance, because machines usually demonstrate less variability than workers and increases the speed of production processes with a significant quality enhancement (Freund et al., 1997). However, this does not mean that the need for quality management disappears; on the contrary, automated machines only work with quality products (Karatsu, 1988). Both electronic detection and signaling devices also help to reduce process variance. These types of applications lead to the reduction and eventual elimination of a number of inspection type activities (Litsikas, 1997).



SPC may be facilitated, through the automated measurement of product and process parameters and the registration and processing of data (Kendrick, 1995 and Papadakis, 1990). IT can also be useful in bridging the gap between SPC and Statistical Problem Solving (SPS) as described by Layden and Pearson (1992). For example, Gong et al. (1997) proposed a procedure for combining an on-line sensor and a control chart to improve statistical process control decisions.

Those companies involved in a process of quality management systems certification, such as ISO 9000 and QS-9000, now have access to a variety of software to assist them in the process of implementation and self assessment (Ward, 1998).

These three different types of application are a clear indication of the way in which IT can help to improve quality at a shop floor level. On the other hand, automation can imply less flexibility and this is not in line with the TQM principles (Schonberger, 1986).

The design of processes to ensure that outcomes conform to quality requirements is a key issue along with the control of processes in which transactions are conducted on-line. It could be that new generations of quality control and improvement tools are required in this type of environment. Patterson et al. (1997) provide an example of the need of new quality control and improvement tools created as a consequence of the use of CNC machinery. In relation to this there is a need to develop appropriate algorithms and software interfaces to evaluate the effects of process interfaces and changes to processes and systems, prior to their implementation.

IT also enables companies to run all their global businesses on one system. They can operate the same processes in every country and have real time data such that executives know the current state of the business anywhere in the world (see, for example, Palvia et al., 1996 and Paxton, 1997).

Quality data and reporting The use of IT is a fundamental skill to work with data, access to different databases is

made easier and the subsequent analysis is faster and more accurate. Organizations have to consider how to apply IT to facilitate the interchange of information between different departments (Lawler, 1991). Some IT applications provide an automated means to gather, record, and act on ideas during meetings of workgroups (Jackson et al., 1995). Information from newsgroups and listservers provided in the Internet can also be useful aids to improve product quality (Finch and Luebbe, 1997). The manner in which IT can help in different tasks, such as the determination and use of quality costs, feedback of quality data to employees and managers for problem solving, providing timely quality measurements, and improving the availability of quality-related data is an issue which has started to surface in the literature but needs further explanation.

Role of the quality department The role of the quality department does not have to change with the introduction of IT. It

needs the same autonomy, same access to top management and has to work with other departments in a facilitating role. Nevertheless, its work will be made easier because these technologies assist in the collection and analysis of data and transferring information to other departments. The quality department in conjunction with senior management will be responsible to provide answers to questions which arise from the implementation of IT in a TQM environment.

Benchmarking



IT can aid the Benchmarking process in a number of ways: communication with partners is made easier, identifying best in class companies is facilitated, simulation of performance measures and gap analysis is made available, and the internal communication of data gathered from benchmarking and of the resulting action plans is made faster. All these new possibilities of benchmarking development that IT facilitates should be explored.

EXAMPLE:

HR MANAGEMENT INFORMATION SYSTEM (HRMIS) Benefits of HRMIS

Larger companies are integrating their separate HR systems (HRIS). An HRIS may be defined as interrelated components working together to collect, process, store, and disseminate information to support decision making, coordination, control, analysis, and visualization of an organization’s human resources management activities. There are many reasons for installing such a system:

1. Competitiveness, HRIS can significantly improve the efficiency of the HR operation and therefore a

company’s bottom line, even for mid-size Firms. 2. Improve transaction processing.

HRIS packages provide computerized processing of a wider range of the firm’s HR transactions than would be possible if individual systems for each HR task had to be used.

3. On-line processing making the company’s employee literally part of the HRIS.

4. Improved reporting capability. The HRIS can bump the firm up to a new plateau in terms of the number and variety of HR-related reports it can produce.

5. HR system integration. Because its software components are integrated, a true HRIS enables an employer to reengineer its entire HR function by having the IS take over and integrate many of the tasks formally carried out by HR employees.

HRMIS and the Internet / Intranet technology As we’ve seen there is a wealth of information available on the Internet that employer

and employees can use to help them carry out their HR tasks. Many employees find that the Internet is especially useful for searching for and finding jobs. Firms are reporting extraordinary results with their recruitment Websites. Synchronous and asynchronous Internet-based training are two other examples of how forms make the Internet part of their HR systems today.



Question NO 4How can quality be reflected in the following:

1. Distribution Policy2. Human Resources3. Sales4. Suppliers

ANSWER:

Distribution Policy:To make sure the implementation of quality in distribution policy, select the distributors

that complement organization’s quality edge. To select and manage the appropriate distributors following points should be considered:

Choosing a Distributor:In choosing a distributor, the following are a number of key steps that will help guide you.

1. Select your target market Be very clear on which market you want to target. When doing so, take into account the strengths of your own company. Go to understanding the market for market research tips.

2. Do your homework They say to fail to prepare is to prepare to fail. The more homework you do and the more information you gather, the better the chance you have of successfully choosing the right partner.

3. Talk to the trade The experiences of others can help you in making the right choices. Talk to other manufacturers, buyers and store managers.

4. Market research The best way to see how a distributor handles products in the market place is to look at their overall performance. This will also give you an idea of how your own products could fit in with their portfolio.

5. The checklist

Asking key questions will help you gather relevant information. Checklist:

Years in business Sectors serviced Coverage Facility Sales structure Trade feedback Payment terms



Sales information Deliveries

6. Be confident Emphasize what your company can bring to the table when in discussion with any prospective distributor. Remember it is a partnership; so while you need a good distributor, the distributor equally needs a good supplier.

7. Compare and contrast In order for you to decide on your ideal partner, you need to compare the qualities of all prospective distribution companies. A good way of doing this is a distributor comparison matrix, which lists the key qualities of each operator.

8. Deciding on your distributor The decision on which you should choose could be complex as some distributors will have certain qualities that others don’t have and vice versa. One company may not have everything on your wish list. It may be necessary for you to prioritise and make a decision on who can provide the best offering, even if they are lacking in certain areas.

Very often, there will be very little difference between distributors and your decision will come down to a “gut feel” as to who can best do the job for you.

9. The contract This document will form the foundation of your relationship and should incorporate all the elements required to successfully drive your business forward. It should also be a clear agreement between both parties detailing the responsibilities and directives that each party must carry out. Go to the manufacturer & distributor contract. Finally as in all aspects of life including business there will always be change. It is important to continually review your business model and adjust your goals accordingly.

Managing a Distributor:Now that you have chosen your distributor, the work really begins! For the purposes of achieving maximum commercial success, both you and your distributor will need to work hard at developing and advancing the relationship.Some tips that will help:

Targets: For an effective business partnership with your distributor, some form of measurement will need to be in place with regard to sales. Having a defined set of targets is the best way of doing this. These targets should be in agreement with the distributor and will need to be reviewed on a regular basis. All of this should be in the contract.

Keeping control: It is important to remember that although your distributor is your representative, you should maintain the relationship at key account level (with the buyer). This ensures that you do not have an over-reliance on any one distributor.



Relationship with your distributor: Any healthy relationship requires the parties concerned to talk in order to successfully work together as a team. It is important to keep the doors of communication open at all times, thus allowing you to raise any issues of concern.

Weekly phone contact with distributor: Contact should be ongoing and the development of a focused relationship with your distribution company’s account manager will help you to grow and develop your business. Ideally, contact should be made on a weekly basis.

Weekly sales reports: Your distributor should be providing you with weekly sales reports showing sales performance versus targets. This report should list all the retail/foodservice outlets where your product is currently stocked.

Quarterly review meeting: It is vital that you review progress with your distributor once per quarter, at a formal review meeting where sales performance and targets are compared. The objective of this meeting is to review progress based on results achieved and to alter targets as well as overall strategy if necessary.

Annual senior review meeting: Equally important is the need to draw a line in the sand once per year to assess how the joint business is progressing and to identify potential business opportunities. You will need to be commercially minded about the partnership thus necessitating an in-depth performance review annually.

Minimum of two full sales force meetings per year: Your distributor’s sales force is effectively your sales team on the ground. You need to put considerable effort into educating them and providing them with relevant information relating to your product range. This will equip them to grow sales in the marketplace. Briefings and product tastings for reps and telesales staff can reap enormous benefits.

Minimum of one price review per year: You must review your pricing annually as there are certain increasing costs. You will have no choice but to pass these through to your distributor or retailer/foodservice outlet. On the other hand, you must be perceived as efficient and be able to demonstrate to your distributor that you have cost reduction strategies in place. These will absorb/deflect many of the increases you get from your own suppliers creating a sense of confidence that you are only passing on those costs that are absolutely necessary. Remember, if you accept price increases from your own suppliers and service providers and you do not pass these on to your distributor, you are reducing your own business profits.

Review strategy:



Despite the best efforts of both you and your distributor, sometimes sales do not materialize as planned. You need to recognize this, and react rapidly with a new sales strategy for the product. Additional promotions, new listings, sales force reviews, fast track NPD, etc. should all be harnessed to re-energize the relationship and drive sales forward.

Management by walking about: A simple policy of visiting stores and calling into a number of customers to see how your product is performing is a great way to stay in touch and measure your distributor’s performance. It also sends a strong message to the distributor’s team that you are fully in touch at trade level.

Human resource for Quality: The TQM is defined as “ a management approach of an organization, centered on quality, based on participation of all members and aiming at long-term success through customer satisfaction, and benefits to all members of the organization and the society ”(Rao, Ashok & et al, (6)). TQM is a continuous process of improvement for individuals, and whole organization.

To reflect the quality from Human resource following points should be considered:

1- HR planning, recruitment, and selection 2- HR development & training 3- Compensation and benefits 4- Safety and health 5- Employee and labor relations 6- HR research

Human resources functions refer to “those tasks and duties performed in both large and small organizations to provide for the coordinate human resources. The Society of Human Resources Management identified above mentioned six main functions.

Performing an HR audit which is the first step of a strategic human resource function. The audit examines every major aspect of HR management and identifies strengths, weaknesses and necessary corrective actions. Designing the interventions to prepare the people and the organization for the proposed change. Providing intensive training of personnel programs in the topic of TQM methods and tools and initiating employee involvement in TQM activity.

Creating TQM mindset through the following orientations:

The customer orientation The process orientation The people orientation HR AND INFORMATION SYSTEMS

Impact of information systems on HR strategic management Automating the paper work to save time and effort and to avoid the use of additional

staff. Storing data about applicants facilitates searching and selecting tasks.



Administrating of risk management by monitoring licenses, safety training, physical exams and report deviation.

Managing the training activities to specify the organization training needs. Upgrading expertise and skills to provide training development. Planning and simulating the financial impact and recommending strategy changes. Analyzing turnover causes. Elaborating iterative planning processes by identifying a logical path and monitoring its

steps Administrating flexible-benefits that save money. Tracking and analyzing attendance reports. Supporting the HR planning using IS capabilities in making projection. Analyzing accident reports that help to prevent them. Providing all regular calculations and statistical reports that assist managers. Supporting the strategic, tactical, and operational use of the HR of an organization.

Sales:To reflect the quality from sales, sale forces should be:

Effective sales representatives have a style unique to their personalities, interests and experiences. Moreover, different types of sales teams--executives, telemarketers, door-to-door representatives--will typically have different characteristics. At the same time, however, all high-performance sales teams tend to share a few fundamental traits. Some are developed over years of experience in a variety of social, academic and professional environments; others can be taught and learned in quality sales workshops.

ConfidentMembers of an effective sales force are confident in their abilities as salesmen and in the value of their product or service. Their confidence is evident in body language, direct eye contact, enthusiasm and assumption of the sale. Potential clients will tend to feel persuaded to believe in the quality and value of a product when they see the sales representative is genuinely sold on the product.

OrganizedOrganizational skills are extremely important in sales, especially when dealing with dozens of clients with different personalities, needs and timetables. An organized sales force is punctual, prepared for anything and on top of all accounts, goals and targets. Disorganization can result in lost leads and sales opportunities; it can also cause a lack of preparation for sales meetings which can offend clients and result in higher stress.

MotivatedEffective sales representatives are motivated to sell. This is due to many factors like commission incentives; respect and recognition at the office; loyalty to the company they represent; and perhaps most importantly, a sincere belief they are providing their clients with a product that will benefit them in some way. Motivation and drive will help representatives maintain their energy and enthusiasm levels, and focus their will on reaching their sales targets and professional goals.



ProfessionalIn sales, professionalism can relate to the way you dress and take care of yourself (hygiene), the caliber of your language, the timing of your sales calls and your ethics when dealing with clients. An effective sales force is sharply dressed, polite and courteous, considerate of a client’s time and honest and forthright in all dealings. To hire sales representatives not exemplifying these attributes is to do your product and company a complete disservice.

Solution-OrientedEffective sales representatives see challenges, not problems, and never let a challenge stop them from reaching a professional goal. When they run into a challenge, they are motivated to look for solutions instead of getting discouraged and frustrated. This characteristic is especially important for sales leaders who are looked to for support and guidance.

EnthusiasticHigh-performance sales teams are enthusiastic. They exhibit positive energy that is infectious; this helps them disarm tough customers and increase their sales numbers

Suppliers:

The new age mantras of any business today are “the customer knows best” and “the customer is always right”. Businesses have grown and fallen because of the all important customer. While the customer is king, and businesses are geared towards serving their customers in every way possible, without a good supplier or supplier chain to sustain the business, the customer base will fast disappear.

Hence the key to running and managing a business successfully means that you have a strong customer base and a stronger supplier base. So how do you decide if a supplier is good and trustworthy?

Before answering that, let us begin with first understanding what defines a good supplier.

A good supplier is one who can meet all customer expectations, with respect to delivery time, quality of goods and dependability.

Therefore it is logical to infer then that a good supplier is one who meets theses qualities. However while the laws of commerce have remained relatively simple, the demands and expectations of the customer keeps evolving. And hence the role of the supplier has changed as well. Keeping in mind the expectations of the customer, the following list contains seven key characteristics of a good supplier:

Timely delivery:

A good supplier is someone who keeps up to timely delivery of goods and supplies. Delayed supplies leads to business losses to the immediate customer and in turn delayed delivery to the end customer. This also opens up avenues for other secondary systems like buffer inventories to keep the chain going in addition to increasing overall costs.



Constant frequency of delivery (daily basis):

If a supplier can keep to supplying goods at constant and smaller frequencies, then the cost advantage is supplemented. Meaning, if a product or part is found to be defective, then the time spent in replacing it is minimal as opposed to having to replace a whole carton or shipment of that item since the delivery is frequent and the supply chain is actively functioning. This is not only cost effective but is also a time and space saver.

Reasonable price:

Business owners and suppliers add the cost of purchasing materials for a product into its retail price making it costlier. A reduction in this cost will lead to a reduction in the cost of the product as well.

Minimal paper work:

From the placing of an order to the actual buying of an order involves a ton of paper work. A good supplier will find ways of reducing the amount of paper work involved.

Quick response/ turnaround time:

The world of business is highly unstable, and often the gap between demand and supply can be hard to predict. A good supplier will always be prepared to meet such a contingency. Again a frequent and smaller quantity of supplies is the key to eliminating this gap.

Inspection of goods:

Inspection of goods is a time consuming activity for both the supplier and the buyer. However quality assurance of the goods can again reduce the time spent on inspecting the goods.

Taking care of wear and tear and transport damage:

Transportation and delivery often involves a lot of wear and tear and a good supplier is someone who recognizes these limitations and takes proactive steps to help reduce or avoid the damage involved.

The importance of a good supplier cannot be undermined and it can be said then that a business is as good as its suppliers.

Question No 5



Would a quality improvement program based on process control be more appropriate for employee involvement than a system based on traditional production methods? If so, Explain why.

ANSWER:

Employee involvement is very important in any TQM initiative and quality improvement program, as it is a system wherein employees are encouraged to use their expertise and knowledge to suggest methods for improvements in their work areas. These suggestions could relate to improvements in the job, the product, the work atmosphere or the company as a whole. Many companies have ventured into a participation-style of management by involving employees in the problem solving and decision making processes.

Some of the most successful companies are those that have achieved a close relationship between workers and the managers. The policies in these companies fostered teamwork, participation, continuous learning and flexibility.

Changing an organization from a strict top-down hierarchy to one that engages employees at all levels to make decisions is not an easy thing to do- it involves not only structure and policy changes but also cultural change, which takes time, effort, and expertise. That being said, organizations from every industry are applying the concepts of employee involvement to drive the continual improvement of their processes and performance.

The most important differences between the traditional approach and Systems Approach relate to the following components:

establishing program goals,

employee involvement,

use of quality management tools, and

Implementing and integrating solutions.

Typically, the traditional approach to process improvement considers a particular option for each project based on the results of a feasibility study that considers only a few alternative solutions. By contrast, the Systems Approach typically considers more than 20 alternative solutions that are generated by using the quality management tools. It is root cause analysis that makes this possible—and root cause analysis is rarely used in the traditional approach.The Systems Approach uses “systems thinking” to link the process improvement projects that are selected, and to leverage their lessons learned to every other aspect of the system that can use this information. This differs from the traditional approach, which tends to be project-



focused: Once one project has been completed, the next project is started—typically with little attempt to apply the lessons learned from the previous project.Typically, the traditional approach operates with a determined top-down style. Employees are rarely involved in the selection and planning of process improvement projects.In the Systems Approach, employees are directly involved in verifying the validity of hierarchical process maps and in identifying opportunities for improving the process. Management then selects the particular opportunities that are consistent with current business conditions and assigns employee teams to each project.The employee teams then use quality management tools to prepare draft action plans that management approves for implementation.Once management agrees to provide resources for a process improvement project, the employees will be held accountable for its success. If management does not provide the resources or fails to provide proper oversight, employees are not held accountable. This provides a proper balance of bottom-up and top-down management that should help the program to be more successful.

Question No 6Explain the benefits of Just-in-Time (JIT).

ANSWER:

Just in time (JIT)

JIT is a production strategy that strives to improve a business return on investment by reducing in-process inventory and associated carrying costs. To meet JIT objectives, the process relies on signals or Kanban between different points in the process, which tell production when to make the next part. Kanban are usually 'tickets' but can be simple visual signals, such as the presence or absence of a part on a shelf. Implemented correctly, JIT focuses on continuous improvement and can improve a manufacturing organization’s return, quality, and efficiency. To achieve continuous improvement key areas of focus could be flow, employee involvement and quality.

Benefits;

Reduction of direct and indirect labor cost by eliminating extraneous activities Reduction of floor space and warehouse space per unit of output Reduction of setup time and schedule delays as the factory becomes a continuous

production process Reduction of waste, rejects, and rework by detecting errors at the source Reduction of lead time due to small lot sizes, so that downstream work centers

provide feedback on quality problems Better utilization of machines and facilities Better relation with suppliers JIT Allows Customization and Increase Customer Satisfaction Better plant layout



Better integration of and communication between functions such as marketing, purchasing, and production

Quality control built into process

Question No 7

How would you establish a system to measure customer satisfaction?

ANSWER:

There are two basic steps in a measuring system:

1. Develop key indicators that drive customer satisfaction2. Collect data regarding the perceptions of quality received by customers

Key Indicators

Key indicators of customer’s satisfaction are what the company has chosen to represent quality in its products and services and the way in which these are delivered. The building blocks that the system designed to track key indicators are expectations of customers and company perceptions of customer’s expectations.

The range of key indicators depends of services or products provided by the company. Some important key indicators suggested are as under;

Outcome Timeliness of service Satisfaction Dependability Reputation of the provider Friendliness / Courteousness of employees Safety / Risk of the service Billing / invoicing procedure Responsiveness to requests Competence Appearance of the physical facilities Approachability of the service provider Location and access Respect for customer feelings / rights Willingness to listen the customer Honesty Ability to communicate in clear language

These indicators, if appreciate and addressable, are converted to action items that reflect specific delivery systems where product or service meets the customers.

For example, in a bank customer needs and systems would combine to deliver short teller lines, friendly and courteous staff, ATMs that work, and low fees on account.



Data Collection

Data collection is required in order to identify the needs of customers and the related problems of process delivery. The data gathering process surveys both customers and employees. By including employees, customer’s needs and barriers to service can be identified, as well as the recommendations for process improvement. Different orientations are emphasized for customers and employees;

The former are asked for their expectations and latter are asked what they think customer expects.

Question No 8

Select an industry and list three or four key success factors (e.g., Advertising, Distribution, Engineering and Sales) for that industry. Which firm in your opinion, would be appropriate to benchmark?

ANSWER:

Success in the fast food industry requires mastery of different parameters than fine dining. Customers who go to a fast food business are looking for speed, convenience and predictability rather than a memorable dining experience. Fast food entrepreneurs who understand this can master these elements of the business and perhaps make a profit.

Branding

McDonald's, Burger King, Wendy's and KFC are examples of extremely successful fast-food branding. Their signs, logos and slogans are recognizable around the world. Fans of fast food like predictability, and they want to know exactly what they are going to get before they go through the doors, according to the website Customer Service Zone. By providing consistent, easily recognizable and simple branding, a business reassures customers that nothing has changed. Simple slogans that lodge themselves in the brain are repeated endlessly on television and radio commercials, ensuring that when customers see the fast food outlet, they are primed to respond because the brand is already "inside" of them.

Location:

Fast food is about convenience, so to be successful a fast food outlet should be located in a high-traffic area, according to the website Biplanes. Fast food isn't considered a destination; customers won't travel into the countryside for a bag of fries in the same way that they would for a special restaurant experience. By locating outlets in shopping malls and on busy commercial strips, fast food companies gain business and impulse purchases from customers who had no preplanned patronage of the restaurant.



Speed:

Fast food that lives up to its name gains more business than fast food that is actually slow. Many people grab fast food on the way to work or to another destination. The reason that drive-through windows are popular is that people don't even want to take the time to get out of the car. The faster a restaurant can deliver the ordered food, the happier the customer is. Setting up efficient and standardized kitchens and focusing on foods that can be cooked quickly are two of the ways that McDonald's became so successful in this competitive industry, according to Business Week.

Efficiency:

Fast food restaurants run on thin profit margins and make their money by selling lots of product, according to the website Street Directory. In this commercial environment, functioning efficiently is critical. This means minimizing food waste, hiring help at minimum wage and benefiting from economies of scale when purchasing supplies. Every dollar that is unnecessarily spent on operations is a dollar subtracted from profits. Because of high employee turnover in the industry, training regimens for new employees need to be standardized, rapid and effective.

Best Practices Companies which can be selected for benchmarking

Company Function

American Airlines Information system (long time)American Express (Travel Services)

Billing

AMP Supplier ManagementBenetton AdvertisingDisney World Optimum Customer ExperienceDow Chemical SafetyEmerson Electric Asset ManagementFederal Express Delivery TimeGeneral Electric Management ProcessHP Order fulfillmentHonda New Product DevelopmentGTE Fleet ManagementIBM Productivity3M Technology Transfer

Question No 9

Define the concept of synergism. How does organization around the principles of TQM tend to integrate the organization and achieve synergism?



ANSWER:

Synergism:

A synergy is where different entities cooperate advantageously for a final outcome. Simply defined, it means that the effect of the whole is greater than the sum of the effects of the individual parts. Although the whole will be greater than each individual part, this is not the concept of synergy. If used in a business application it means that teamwork will produce an overall better result than if each person was working toward the same goal individually.

How does organization around the principles of TQM tend to integrate the organization and achieve synergism?

In any product design quality and quality management process, the main driving factor is the engineers with their experience, inherent faults-mistakes and competence. The quality management system is called forth to help them to find a way to avoid human shortcomings. At first sight it seems that in case of quality assurance we have to choose between two classical ways--either the prescriptive/ administrative or the descriptive/case-based approach. In fact, there should be an interactive and adaptive environment between them. The successful separation of human and technical aspects at the design and application of systems atomization opens up new possibilities to move ahead on the way of the synergy-based approach to quality assurance in the framework of TQM. By integrating the technology of Dependency (Design) Structure Matrixes (DSM) and the Theory of Domains it is possible to include time and competence dimensions in quality assurance. In other words, it is possible to develop a family of adaptive tools based on the level of competence and expert knowledge of the team and to synthesize their own roadmap algorithm to move ahead on the way of synergy-based quality assurance [3]. The proposed model makes it possible to take into account both "soft" parameters of integration--market conditions and human aspects. In the business environment, synergy occurs when two or more businesses or resources come together to make a greater impact than they would separately. In his "The 7 Habits of Highly Effective People," author Stephen R. Covey lists synergy as one of them and notes that "two heads are better than one." As a small business owner, you can use synergy in your workplace to enhance your business.

Integrate Writer and Designer Teams:

Creative agencies help businesses create messages that inform, persuade or remind potential or existing customers about the products and services they offer. These messages typically involves the use of words and images, which ensure the message is appropriately delivered to the target market. Agencies pair writers and designers, and encourage them to work closely to to create cohesive marketing messages that resonate with the company's target market. They may create a website, brochure, sales sheet or poster. Synergy exists as the pair merges talents to create a final piece.

Send Email Cross-Promotions

Businesses use email marketing to connect with their customers. They send information on product launches, announce sales and introduce customers to new employees. Businesses can leverage their email marketing efforts by doing cross-promotions with non-competing firms that



share similar target markets. For example, a tutoring company can promote a school supply stores' products, while the school supply company can promote the tutoring company. Businesses can cross-promote through email marketing, print advertising, social media, commercials, their websites and company signage.

Display Products In-Store

A business owner who doesn't have a storefront might form a strategic partnership with another business with a similar target market that does have a storefront. For example, a handbag designer might feature her merchandise inside a purse boutique, while area artists may commission their artwork to local restaurants that need decor. In these situations, both parties work together to promote each others' products and services.

Co-Host Events Together:

As a small business owner, you can partner with other small businesses that offer complementary services. Both businesses benefit since you share a similar target market and understand the buying behaviors of that market. For example, a bridal consultant can co-host a bridal showcase for area brides by teaming up with a wedding cake decorator or popular wedding venue. Both hosts can use their resources to plan and promote the event, potentially attracting a larger audience.

Schedule Brainstorming Meetings:

Employers gather employees for brainstorming meetings to solicit ideas on everything from proposed colors or flavors for a product to devising creative ways to promote products and services through social media. By working as a team, the employees can produce a longer list of diverse ideas.

Participate in Co-Blogging:

Employers and their employees use blogging to communicate and connect with their customers, but they also can use blogs to connect with potential hires. Summer interns can co-blog discussing their experiences at a company. By working together to create posts and ideas for the blog, the blogging team is using synergy that would not exist if members established individual blogs. The combination of the two or more individuals' ideas paints a broader picture of the organization for which they are working.

Question No 10:List three of the five ways to improve the productivity rate of input to output, and identify a specific action that could be taken to achieve the improvement.

ANSWER:

1. Managing Growth

It is more positive approach but growth without productivity improvement is fat. The improvement may suggest an investment or cost addition, but the investment must return more than the cost, thus increasing the ratio. Capital and technological improvements, system design, training, organization design, and the development are among the many ways to manage growth while improving productivity and quality. The approach does not



necessarily mean additional investment in capital improvement. It can also mean reducing the amount of input per unit of output during the growth period. This may be termed cost avoidance.

2. Working Smarter

Working smarter means more output from the same input, thus allowing increase in sales or production with the same gross input and lower unit cost. Many companies think that working smarter means putting a freeze on budgets while expecting a higher level of output. Although this may be necessary as a stopgap measure, it is hardly a rational course of action to improve productivity over the longer term. Better ways of improving this ratio might be getting more output by reducing manufacturing cost through product design, improving processes, or getting more production from the same level of raw materials by increasing inventory turnover.

3. Paring Down

It is similar to cost reduction, expect that as sales or production is off, input should be reduced by a proportionately larger amount, thus increasing the ratio. This productivity improvement can frequently be achieved through sloughing off. In many organizations there are many more opportunities that are generally realized to reduce marginal or unproductive facilities, employees, customers , products or activities.

Specific action that can improve productivity

Improve assembly output by 30 percent by reducing the excessive number and types of fasteners

Reduce repetitive downtime of machines by problem solving Set material standards and reduce rework by 10 percent Improve clerical costs from by 30 percent by avoiding duplication with adequate

work procedures Reduce labor cost by training technicians to replace engineers

Question No 11

What is the justification for Philip Crosby’s claim that “Quality is Free”?

ANSWER:

The essence of Crosby's quality philosophy is embodied in what he calls the Absolutes of Quality Management and the Basic Elements of Improvement.

Crosby's Absolutes of Quality Management are as follows:

Quality means conformance to requirements not elegance.

Crosby dispels the myth that quality is simply a feeling of "excellence." Requirements must be clearly stated so that they cannot be misunderstood. Requirements are communication devices and are ironclad. Once a task is done, one can take measurements to determine conformance to requirements. The nonconformance detected is the absence of quality. Quality problems



become nonconformance problems ¬ that is, variation in output. Setting requirements is the responsibility of management.

There is no such thing as a quality problem.

Problems must be identified by the individuals or departments that cause them. There are accounting problems, manufacturing problems, design problems, front-desk problems, and so on. Quality originates in functional departments, not in the quality department, and the burden of responsibility for such problems lies with the functional departments. The quality department should measure conformance, report results, and lead the drive to develop a positive attitude toward quality improvement. This is similar to number 3 of Deming's Points.

There is no such thing as the economics of quality:

It is always cheaper to do the job right the first time. Crosby supports the premise that "economics of quality" has no meaning. Quality is free. What costs money are all the actions that involve not doing jobs right the first time. The Deming Chain Reaction provides a similar message

Quality is free. It's not a gift, but it is free. What costs money are the unquality things - all the actions that involve not doing jobs right the first time."

The naive view of quality is that you can sacrifice it as one of the Four Variables to achieve more of one of the others -- time, cost, or scope. In reality, improving quality up to some threshold typically results in less time, less cost, and more scope. Beyond that, it begins costing again. Maybe there is a Quality Elbow?

"Quality is Free" stands in contrast to the conventional wisdom that you achieve quality by testing and throwing out or fixing defects. With that model, you achieve quality by testing, fixing and discarding more -- at higher cost. The newer model is to do it right the first time: If you don't put the defects in, then you don't have to pay to find and remove them.

One tactic for achieving this level of quality is to Code Unit Test First.

This is a possibility, but that is assuming you are using testing as the determination that a piece of code or a system meets requirements. For designs, documentation, and code I far prefer the Fagan Defect Free Process to testing of any kind. – MARTY SCHRADER.

I believe that quality, for all practical purposes, never takes longer or costs more than non-quality. Working without the quality-generating behaviors will hurt us in a matter of weeks or days, not a matter of months. RON JEFFRIES

Generally speaking, I think good code takes longer to "write" (read that literally as "type into the editor"!) than crummy code, but you get that time back quickly because testing goes faster, and there's less debugging. This is more obvious with the continual testing of XP, while in a waterfall scene, it's easy to miss. BCHAMBLESS

So low quality will in general come back to hurt you before the release. That is, before you get the pay-off from any time saved. -- JOHANNESBRODWALL

8"Quality is not only free, it is an honest-to-everything profit maker. Every penny you don't spend on doing things wrong, over, or instead becomes half a penny right on the bottom line. In these days of 'who knows what is going to happen to our business tomorrow' there aren't many


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ways left to make a profit improvement. If you concentrate on making quality certain, you can probably increase your profit by an amount equal to 5 to 10 percent of your sales. That is a lot of money for free."

Question No 12

Compare the standards of ISO 9000 with those of the Baldrige Award.

ANWER:

Similarities

First, it should be said that there are generally more similarities than differences between ISO 9001 and Baldrige. They are aligned with generally similar objectives for the organizations that employ them, and we could find no areas where implementation of requirements from one document would conflict with implementation of actions that are responsive to criteria in the other document. Additionally, systems based on either document will tend to ensure that organizations identify and meet their customers’ requirements and expectations.

Additionally, both the ISO 9001 requirements and the Baldrige criteria are accompanied by a significant amount of elaborative and guidance information that can help the users of the documents understand the underlying concepts, integrate their implementation, and move beyond basic compliance. This guidance is provided in portions of the Baldrige Criteria for Performance Excellence booklet other than the specific criteria enumeration, such as the Core Values, Concepts, and Framework; Category and Item Descriptions; and Criteria Response Guidelines. For the ISO 9000 system, such guidance appears in ISO 9004:2000, “Quality management systems – Guidelines for performance improvements”.

Very strong alignment is seen between Baldrige Category 6 (Process Management) and the requirements portion (clauses 4 through 8) of ISO 9001. Conversely, aspects of ISO 9001 clauses 7 and 8 (Product Realization and Measurement/Analysis/Improvement, respectively) are reflected throughout the Baldrige criteria.. Areas of strong overlap include product, service, and support process design, delivery, measurement, and continuous improvement. Although approaches to supply chain management differ, both documents address this subject as well.

Systems based on either document will involve internal, self-assessments against the criteria or requirements, a key component of a culture of continual improvement.

Finally, both documents specify their requirements or state their criteria in terms of what should be achieved or what conditions should be established, without dictating how to do so, leaving detailed implementation to the using organization.

Differences

Several of the observable differences in the two systems arise from the fact that they exist for different purposes. The Baldrige criteria are primarily intended to guide an organization in preparing a written application to be considered for the Malcolm Baldrige National Quality Award, while ISO 9001 is a standard against which an organization’s quality management system is assessed for certification purposes. These differences create some notable contrasts.



One of the most apparent differences between the two documents, arising from their differing purposes (and related evaluation processes), can be seen in the Baldrige category calling for results to be enumerated and reported in a specific portion of an award application. ISO has no comparable content, but does not need such a stand-alone requirement for reporting results. Because applications for the Baldrige award are evaluated, at least initially, by examiners who do not visit the applicant’s location, there is a need for qualitative and quantitative results from the applicant’s business system to be included in their application.

However, since ISO conformance is evaluated by assessors who visit an organization’s location to directly observe the functioning of the organization’s quality system, levels and trends in metrics (results) used to monitor the organization’s performance can be observed in real time. Therefore, no separate, written enumeration of those outcomes is needed for ISO. So, even though this distinct difference exists (as illustrated in Figure 5 by the lack of correlation of Baldrige Category 7 with ISO 9001), there is no real significance to this difference.

Another difference arises from the differing purposes of the two documents and can be seen in the style of the two documents. The Baldrige criteria, being criteria for an award, are phrased in the form of questions to be considered and answered. ISO 9001, as a certification standard, states specific requirements to be met, thereby aligning more strongly with other requirements-based, conformance-oriented systems such as Department of Energy Order 414.1A and ANSI/ASME NQA-1.

Individual, topical contrasts between Baldrige and ISO include the following: In ISO 9001, the role of senior leaders in crafting, implementing, and supporting

the quality management system is clearly established, but ISO has few other leadershipspecific criteria. Baldrige calls for leadership actions in directing all of an organization’s systems, including setting its vision, values, and objectives, developing strategic plans, and supporting an ethos of social responsibility.

Regarding customer knowledge and satisfaction, ISO focuses very strongly on knowing customer requirements for the product/service, with clear focus on achieving customer satisfaction. Baldrige also stresses knowledge of customer requirements and is concerned with a wider range of customer satisfaction information, including means for customer access to the organization, complaint management, and segmentation of customer information for analysis, as well as with customer relationship development. Additionally, Baldrige addresses using information about both competitors and comparable organizations.

Regarding management use of information and data, ISO emphasizes the quality assurance functions of process monitoring, verification of product/service characteristics, and tracking customer satisfaction, plus use of data for improvement. Baldrige addresses those uses of data, and includes criteria about ensuring the integrity, accuracy, and availability of data, as well as the capture, consolidation, and dissemination of organizational knowledge.

In the area of Human Resources, ISO is concerned with adequacy of employee competency in their work functions; Baldrige is concerned with that plus future



development of employees and their well-being and satisfaction, as well as the organization and management of work systems in general.

Although it is not apparent from the content of ISO 9001 and the Baldrige criteria, a notable difference between the two documents appears in the respective processes by which organizations’ quality systems are evaluated and the sustainability of the resulting quality management systems.

Both processes involve internal, self-assessments against the criteria or requirements; the Baldrige evaluation then includes a critical review of the descriptive content of a written award application by a group of independent examiners, while ISO certification involves an in-depth on-site audit of an organization’s quality management system.

The education, experience, and training required of Baldrige examiners and ISO assessors, while demanding and rigorous in both cases, differ in detail.

The Baldrige award process includes a site visit for a few award finalists each year; every organization that seeks ISO certification experiences an on-site audit conducted by rigorously accredited auditors.

Additionally, ISO certification evaluation is periodically and systematically repeated over time for maintenance of certification; a Baldrige award evaluation is a one-time event.

As a result, the gains achieved in pursuing ISO certification are inherently more sustainable than those for a Baldrige application, unless the organization is highly disciplined in maintaining their quality system.

Table, below, summarizes the similarities and differences described above

Table Summary Comparison of ISO 9001-2000 and the Baldrige Criteria for Performance Excellence

Characteristic or Area of Comparison

ISO 9001 Baldrige

Effective as precursor for ISO Certification?

N/A Not very effective

Effective as precursor for Baldrige levels of performance?

Yes N/A

Explanatory, elaborativeinformation beyond basicdocument

ISO 9004:2000, “Qualitymanagement systems –Guidelines for performanceimprovements”

Other portions of the BaldrigeCriteria booklet

Internal self-assessment RequiredImplicit, for applicationpreparation

Basic purpose A standard for certificationA guide for preparation of anaward application

ObjectiveIncreased customer confidencein your product/service

Organizational/businessperformance excellence

StyleSpecifies requirements to bemet

Poses questions to beconsidered and answered

Type of external evaluation On-site audit by qualified Evaluation of a written



assessorsapplication by selected,trained examiners

On-site evaluationFor every organization,repeated semi-annually

For a very few awardcandidates, once

Role of organization leadersFocused on establishing andSupporting the quality mgmt.system

Emphasizes directing andleading all aspects of theorganization

Customer focusStrongly oriented on meetingcustomer requirements and oncustomer satisfaction

Similar orientation on knowledge of customer requirements, Customer relationship management, Analysis of customer information

Use of data and information

For production monitoring,product characteristicsverification, customersatisfaction, supplierperformance

The ISO uses, plus businessresults, organization effectiveness results, and management of “org. knowledge”

Human resource focus Employee competencyEmployee competency,development, and well-being

Sustainability of performanceexcellence

Implicit, due to semi-annualassessments

No inherent mechanism

Most appropriate level ofapplication

Either at corporate level or atlower levels

Corporate level or major operating-element level


Documents

Assignement Total Quality Management