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TOTAL QUALITY MANAGEMENT: Principles and Strategies

principle and strategies in TQM

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it tackles about the principles of tqm as well as its strategies in attaining TQM

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Page 1: principle and strategies in TQM

TOTAL QUALITY MANAGEMENT:

Principles and Strategies

Page 2: principle and strategies in TQM

TQM: Principles and Strategies: Customer Satisfaction Employee Involvement Process Approach Continuous Process Improvement

Supplier Partnership Performance Measures

Page 3: principle and strategies in TQM

Customer Satisfaction

Customer• greatest need of any organization• should be satisfy

Page 4: principle and strategies in TQM

Customer Satisfactiona.Service Quality b.Customer Delightc.Kano Methodd.Agreed Customer Requiremente.Customer Perceived Qualityf.Customer Feedback and

Complaints Resolution

Page 5: principle and strategies in TQM

Customer Satisfaction

A. SERVICE QUALITYService (ISO 9000)

“results generated, by activities at the interface between the organization and the customer and by the organization’s interval activities, to meet customer needs”

Page 6: principle and strategies in TQM

Customer Satisfaction

A. Features of Service: Speed Delivery Schedule Care in Handling Each service offering is different Customer requirements are difficult to

comprehend Difficulty in estimating cost Difficulty in measuring performance of

service

Page 7: principle and strategies in TQM

Features of Service

Speed - as fast as possible without compromising on quality

Delivery Schedule - directly delivered to the customer - quite critical in the service industry

Care in handling - extreme care handling of both the deliverables as well as the customer

Page 8: principle and strategies in TQM

Features of Service

Each service offering in different - fulfill the individual needs of customer

Customer requirement are difficult to comprehend - efforts to understand the requirements of each customer correctly

Difficulty in estimating cost - organization must have system (simple & unambiguous) for assuring at charges for each offering

Page 9: principle and strategies in TQM

Features of ServiceDifficulty in measuring performance of service

Menachineethodsaterials

Page 10: principle and strategies in TQM

Features of Service

Difficulty in Marketing Service - straight forward approach (manufacturing) - personal contacts with potential buyers and building credibility of the organization by good services consistently

Psychology of customer

“Better to lose a customer by telling the truth rather than getting a customer by giving false promises”

Page 11: principle and strategies in TQM

Customer Satisfactiona.Service Quality b.Customer Delightc.Kano Methodd.Agreed Customer Requiremente.Customer Perceived Qualityf.Customer Feedback and

Complaints Resolution

Page 12: principle and strategies in TQM

B. Customer Delight

Customer Attrition “if the product is good then customer will come back (again)” “if not, the product will come back (returned)”

According to Tom Power: Customer leave because:

Quality problem (15%)Higher price (15%) Didn’t enjoy business w/ the organization (70%)

Page 13: principle and strategies in TQM

Customer Delight

50 % of problem are due to misunderstood requirement

Contractual and Non-contractual requirement of customer Contractual requirement:

• quality: service/product• time schedule of delivery• price• service• document support• training support

Page 14: principle and strategies in TQM

Customer Delight

Non-contractual requirement:• quality (not document before)• implied requirement• value of the money spent• environment of conducting business• friendliness of the customer service

personnel of the organization

Page 15: principle and strategies in TQM

Customer Delight

Customer Contact Personnel - must be C-O-M-F-O-R-T

C aring

perceived to be very interested in finding out the real needs of the customerO bservantgood observer

Mindfulsensitive to urgency and the expectation of the customer

Page 16: principle and strategies in TQM

Customer Delight Continuation….

F

O

R

T

riendlygreet them with a smile

bliginganswer the customer queries

esponsiblefulfilling the quality requirements

actfulcustomer understand and cooperate in completing the job successfully

Page 17: principle and strategies in TQM

Customer Satisfactiona.Service Quality b.Customer Delightc.Kano Methodd.Agreed Customer Requiremente.Customer Perceived Qualityf.Customer Feedback and

Complaints Resolution

Page 18: principle and strategies in TQM

C. The Kano Method

Page 19: principle and strategies in TQM

The Kano Method1. Basic quality/Threshold

- expects that his requirements will implemented in any case

2. Performance quality - satisfaction proportionate of the product - better the performance, the greater the

satisfaction

3. Excitement Quality - received some feature or attribute that

they did not expect or think of - basic feature must be provided

Page 20: principle and strategies in TQM

Customer Satisfactiona.Service Quality b.Customer Delightc.Kano Methodd.Agreed Customer Requiremente.Customer Perceived Qualityf.Customer Feedback and

Complaints Resolution

Page 21: principle and strategies in TQM

D. Agreed Customer Requirement

1. Invest time for understanding customer requirements2. Find out the right requirement first.3. Checklist for eliminating communication

gap.4. Review the contract/requirements.5. Foresee and provide for amendments6. Documented Policy.7. Code of good customer handling practices.

Page 22: principle and strategies in TQM

Customer Satisfactiona.Service Quality b.Customer Delightc.Kano Methodd.Agreed Customer Requiremente.Customer Perceived Qualityf.Customer Feedback and

Complaints Resolution

Page 23: principle and strategies in TQM

E. Customer Perceived Quality

1. No hard and fast rule for identifying measures

2. Identify vital few measures3. Arrive at quantitative indices4. Measure for customer satisfaction

a. Customer perceived qualityb. Response timec. Errors in documentationd. Errors in deliverye. Delay in executionf. Delay in delivery

Page 24: principle and strategies in TQM

Customer Satisfactiona.Service Quality b.Customer Delightc.Kano Methodd.Agreed Customer Requiremente.Customer Perceived Qualityf.Customer Feedback and Complaint

s Resolution

Page 25: principle and strategies in TQM

F. Customer Feedback and complaints resolution

Customer FeedbacksComplaints resolutionComplaints Recovery process

Page 26: principle and strategies in TQM

Customer Feedbacksa.Feedback form

- giving a response sheet- simplified to enable the customer to fill up

with the least difficulty.b. Confidentiality - assure the customer that the feedback will be kept confidential.

- customer will five a free and frank feedback.c. Display Results

Benefits: Customer; know that feedback where seriously by the organization. Employee; know where they really stand.

Page 27: principle and strategies in TQM

F. Customer Feedback and complaints resolution

Customer FeedbacksComplaints resolutionComplaints Recovery process

Page 28: principle and strategies in TQM

Complaints resolution

1. Register of complaints Reasons:

a. keep track of the complaintsb. carry out root cause analysis and

take corrective action immediatelyc. take preventive actiond. find out the cost of poor quality and

other statistical purposes.2. Analyze Independently

- open mind and try to analyze3. Give benefits of doubt to customer

- doesn’t mean that the organization always yields to the customer.

Page 29: principle and strategies in TQM

4. Satisfy annoying customer- diplomatic handling the annoying

customers and send them back as early

as possible.Compliant Recovery process - process for recovering complaints, process them, communicating to customer and resolving the issues. - aimed at satisfying customers, resolving problem and taking preventive actions.

Page 30: principle and strategies in TQM

TQM: Principles and Strategies: Customer Satisfaction Employee Involvement Process Approach Continuous Process Improvement

Supplier Partnership Performance Measures

Page 31: principle and strategies in TQM

EMPLOYEE INVOLVEMENT

“Employee is the strength of an organization, prime contributors to its success and the only expandable resource in the organization”

TQM principles pertaining to Employee involvement:

Employee motivationTeamworkTraining & mentoringRecognition and rewardFeedback and performance appraisalEmpowerment

Page 32: principle and strategies in TQM

EMPLOYEE MOTIVATION

• Continue to do their bestTop Notch 5-

10%

• Motivation levels depend on management strategies

Fence sitters 80-90%

• Do want to get motivatedDifficult to

improve 5-10%

Page 33: principle and strategies in TQM

TEAMWORK working together fulfill the basic expectation of employees

1. Teamwork is not a natural human function - effort should be made to put together compatible person

2. Management’s Role - giving a clear definition of the following:

a. responsibilityb. authorityc. wherewithal for accomplishing the taskd. criteria of measurement of the work

output

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3.Effective communication Communications in Three Way Process: employee is working for supervisor or manager

person working for him – subordinate person one work with peer, counterparts, customer and suppliers.

Page 35: principle and strategies in TQM

TRAINING AND MENTORING Necessity for orientation training is to understand: objective of the organization requirement and expectation from his team his role and responsibilities his authority know-how and know-why-jobs to undertaken

on day to day basis. familiarity and skill in operating the

tool/machinery MENTORING - continuously coaching about the job to understand the organization policy, objective and goals

Page 36: principle and strategies in TQM

RECOGNITION AND REWARD- aim at transforming each employee as performer and an achiever.

Attributes for selection of best performing (ETDC, Chennai):

Commitment Creativity Flexibility Adaptability Determination Responsibility

Page 37: principle and strategies in TQM

FEEDBACK & PERFORMANCE APPRAISALs

Feedback essential both employee & management more humane to be curious to know about the

result of an action employees from management, vice versa analyze to be a good input for the next

decision to be taken

Page 38: principle and strategies in TQM

FEEDBACK & PERFORMANCE APPRAISAL

Strategies:a. Management by walking around concept (MBWA)

- talk to employees and get feedback both from verbal communication as well as their body language.

- direct feedback in the action taken - informal discussions and put the employee at

ease

b. Quality council - encourage the member to talk freely

Page 39: principle and strategies in TQM

FEEDBACK & PERFORMANCE APPRAISAL

Performance Appraisal - used for the development of the employee - used for:

a. promotionb. granting additional incrementc. training of employeed. reallocation of duties etc.

Page 40: principle and strategies in TQM

EMPOWERMENT an organizational state, where people are

aligned with business direction and understand their performance boundaries, thus enabling them to take responsibility and ownership while seeking improvements, identifying requirement.

Page 41: principle and strategies in TQM

EMPOWERMENT

Steps involved in empowerment:I. Agree on what they will produce or carry

outII. Decide how to organize the team.III.Decide on the responsibility within the

team.IV.Decide on flow of work.V. Audit the process.VI. Decide on improvement and restart

Page 42: principle and strategies in TQM

TQM: Principles and Strategies: Customer Satisfaction Employee Involvement Process Approach Continuous Process Improvement

Supplier Partnership Performance Measures

Page 43: principle and strategies in TQM

PROCESS APPROACH - right strategy to be adopted for practicing quality as well as management of organization.

Process - repeatable sequence of events

Page 44: principle and strategies in TQM

PROCESS APPROACH

Input/s to the process

Outputs of the process

Process/Task

Page 45: principle and strategies in TQM

PROCESS APPROACH

Input of process: Bill of materials Specification-

materials Requirement for

inspection Procedure for

receipt of materials

Output of processProduct/service-deliverDocumentsSpecificationMethods of measurementCriteria for acceptance

Value addition in the process - machinery, infrastructure or techniques for achieving the desired value addition.

Page 46: principle and strategies in TQM

PROCESS APPROACH

Input Entry Task Exit Output

EXT Model

Condition to be satisfied before the task is undertaken

Condition to be fulfill before the task is considered as completed

Page 47: principle and strategies in TQM

PROCESS APPROACH

Subburaj’s 6S model for process improvement

Study

Streamline

Simplify

Standardize

Synergy

Strengthen

Process of Improvement

Page 48: principle and strategies in TQM

TQM: Principles and Strategies: Customer Satisfaction Employee Involvement Process Approach Continuous Process Improvement Supplier Partnership Performance Measures

Page 49: principle and strategies in TQM

Continuous Process Improvement Juran’s Trilogy Kaizen Kaizen blitz 5S Practice Three MU’s The Seven Deadly Wastes Business Process Reengineering

Page 50: principle and strategies in TQM

Juran’s TrilogyQuality PlanningQuality ControlQuality Improvement

Kaizen - gradual, orderly and continuous improvement - activities: maintenance and improvement - principles:

a. workplace effectiveness (5S tools)b. elimination of waste, strain and

discrepancy (The Three MUs)c.Standardization

Page 51: principle and strategies in TQM

5S Tools

Japanese English

Seiri SortSeparate out all unnecessary things

Seiton Straighten Arrange the essential things in order

Seison ScrubKeeping machinery and working environment clean

Seiketsu SystematizeMake cleaning and checking as routine practice

Shitsake StandardizeStandardize the previous four steps

Page 52: principle and strategies in TQM

Three MUsMuda WasteMuri StrainMura Discrepancy

Page 53: principle and strategies in TQM

THE SEVEN DEADLY WASTE1. Overproduction waste2. Waste due to waiting3. Transportation4. Processing Waste5. Inventory waste6. Waste of motion7. Product Defects

Business Process Reengineering - fundamental rethinking and radical redesign of business processes to achieve dramatic improvement in critical contemporary measures of performance.

Page 54: principle and strategies in TQM

TQM: Principles and Strategies: Customer Satisfaction Employee Involvement Process Approach Continuous Process Improvement

Supplier Partnership Performance Measures

Page 55: principle and strategies in TQM

Supplier Partnershipa. Importance of supplier - quality raw materials= quality finish products.b. Supplier Selection - ISO 9000 or similar standardsc. Supplier standardsd. Involvement of supplier in developmente. Product Auditf. Vendor Rating systemg. Price Ratingh. Delivery rating

Page 56: principle and strategies in TQM

TQM: Principles and Strategies: Customer Satisfaction Employee Involvement Process Approach Continuous Process Improvement

Supplier Partnership Performance Measures

Page 57: principle and strategies in TQM

Performance Measures 1. PDCA for measurement 2. Balanced Scorecard 3. Performance Based management system

Page 58: principle and strategies in TQM

Plan

Do

Check

Act

Possible measures are identified

What will be measured?Who will measure?When it will be measuresHow?

Results are counter check through other means

Adaptation

PDCA for measurement

Page 59: principle and strategies in TQM

Objective Measure Target Initiatives

Financial

Customer

Initial business process

Learning & Growth

What strategy must be achieved & what is critical to its success?

How success will be measured and tracked?

Performance expectation

Key initiative required to achieve objective

Performance Based Management System

Page 60: principle and strategies in TQM

Thank you