Download - 2ed technical meeting
1. Fundamentals of Total Quality Management.
2. Total Quality Management Model.
3. Top Management’s Role in Total Quality Management.
4. Strategic Quality Planning.
5. Quality Culture.
PRESENTATION OUTLINE
Total Quality Management is the systematic and integrated approach of attaining customer satisfaction at minimum cost through continuous improvements in all areas of an organization’s operations, products and services.
Ranjit Singh Malhi
WHAT IS TOTAL QUALITY MANAGEMENT?
1. Customer-oriented.
2. Organization-wide.
3. Strategic Focus.
4. Change in Corporate Culture.
5. Process Management.
6. Continuous Improvement.
MAIN FEATURES OF TOTAL QUALITY MANAGEMENT
A Total Quality Organization is one which continuously delights its customers in an efficient manner by integrating its various systems, particularly the management system, social system (people) and the technical system (work processes), into a functional whole.
Ranjit Singh Malhi
WHAT IS A TOTAL QUALITY ORGANIZATION?
1. Quality improvement begins with top management’s visible commitment and explicit involvement.
2. Quality is defined and judged by the customers.
3. Quality involves doing the right things right, first time, every time.
10 FUNDAMENTAL PRINCIPLES OF QUALITY
4. The ultimate creators of quality products and services are people.
5. A Culture of Quality is necessary for creating and sustaining a work environment that is conducive to long-lasting quality improvement.
6. The system for improving quality is prevention of errors and defects, not inspection.
7. Quality is process improvement and Management by Fact.
8. TQM organizations are essentially learning organizations.
9. Quality is teamwork.
10. Quality improvement is a never-ending process.
To compete and win, we must redouble our efforts – not only in the quality of our goods and services, but in the quality of our thinking, in the quality of our response to customers, in the quality of our decision-making, in the quality of everything we do.
E. S. Woolard Ex-CEO E.I. DuPont
THE RACE TO QUALITY IMPROVEMENT
1. Do you know clearly what are your customers’ key requirements?
2. Are your customers’ requirements being met?
3. Do you have a clear mission and verifiable corporate quality goals?
IS YOUR ORGANIZATION QUALITY-DRIVEN?
4. Do you have challenging and verifiable performance standards?
5. Are fellow employees treated as customers?
6. Do you measure performance?
7. Are recognition and reward systems based on quality work or job performance?
8. Are your frontline staff empowered to serve customers well?
9. Is your corporate culture conducive to continuous quality improvement?
10. Are your employees provided with adequate and relevant training?
1. Social System
Corporate culture
Personal Quality
Employee participation and development
Teamwork
Empowerment
Reward and recognition system
Communication
TQM : THE SYSTEM MODEL
2. Technical System
Technology
Work processes
Decision-making processes
Job definition and responsibilities
3. Management System
Strategic quality planning
Leadership
Policies
Organizational structure
Managerial control
TOTAL QUALITY MANAGEMENT MODEL
• ISO 9000
• Process Reengineering
• Technology
• Quality Improvement Projects
• Measurement & Evaluation
• Corrective Action
Human Resource Management
• Personal Quality
• Empowerment
Process Improvement
• Training
• Teamwork
• Reward & Recognition System
• Open & Honest Communication
• SWOT Analysis
• Customer Survey
• Benchmarking • Mission
Statement
Strategic Quality Management
• Corporate Goals
• Corporate Values
• Departmental Purpose Analysis
• Corporate Quality Council
• Allocating Resources for QIPs
• Monitoring Quality
• Role Modelling
Continuous Improvement
Quality Management
System Top Management's
Visible Commitment
SELF-RENEWAL (Physical, Mental, Spiritual, Social) CUSTOMER-ORIENTED
QUALITY CULTURE
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ORGANIZATIONAL QUALITY PLAN
• Mission Statement & Quality Goals • Strategies & Quality Indicators • Quality Improvement Projects
IMPLEMENTATION
• Process Management • Coordination • Communication
REVIEW PROGRESS
• Measurement • Reporting Results • Corrective Action
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GETTING ORGANIZED
• Top Management’s Commitment • Organizational Quality Awareness • Quality Management Structure
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ORGANIZATIONAL DIAGNOSIS
• SWOT Analysis • Key Business Processes • Benchmarking • Quality Improvement Opportunities
TOTAL QUALITY MANAGEMENT MODEL
1. Management is responsible for 80-85% of all quality problems.
2. Actions of employees greatly depend on top management’s attitude towards quality.
3. Top management determines the various systems in which people work.
IMPORTANCE OF TOTAL QUALITY LEADERSHIP
1. Model the Way
Find your voice by clarifying your personal values
Set the example by aligning actions with shared values
2. Inspire a Shared Vision
Envision the future by imagining exciting and ennobling possibilities
Enlist others in a common vision by appealing to shared aspirations
FIVE PRACTICES OF EXEMPLARY LEADERSHIP
3. Challenge the Process
Search for opportunities by seeking innovative ways to change, grow, and improve
Experiment and take risks by constantly generating small wins and learning from mistakes
4. Enable Others to Act
Foster collaboration by promoting cooperative goals and building trust
Strengthen others by sharing power and discretion
J. M. Kouzes & B. Z. Posner
5. Encourage the Heart
Recognize contributions by showing appreciation for individual excellence
Celebrate the values and victories by creating a spirit of community
1. Top Management’s Visible Commitment
Form high-powered steering committee to lead the quality initiative
Establish quality improvement as a major corporate goal
Benchmark world-class quality companies
Conceive and communicate the strategic quality plan
Proper quality management structure
TOP MANAGEMENT’S ROLE IN TQM
Allocate adequate resources for quality improvement projects
Undergo quality training and cascade it down the organization
Walk the talk
Monitor quality performance
Recognize and reward superior quality performance
Federal Express, Rank Xerox, Honda Motor Company
2. Strategic Quality Planning
SWOT Analysis
Clear, compelling and shared vision
Specific and verifiable key quality goals
Strategies for attaining vision and quality goals
Improving key business processes
General Electric, Sony, Philip Morris
3. Customer-Driven Organization
Undertake market research (opinion surveys and focus groups) to determine customers’ requirements
Prioritize needs and expectations of customers
Create customer-friendly and hassle-free service delivery systems
Act quickly on customers’ complaints
Continuously listen to customers
Nordstrom, Rubbermaid, Walt Disney, Marriott
4. Excellent Work Processes
Identify and improve major work processes
Eliminate unnecessary work procedures
Build quality into work processes
3M, Dell Computer, Motorola, Duke Power
5. Quality Culture
Customer-focus
Doing the right things right the first time and every time
Open and honest communication
Teamwork
Basing rewards on performance
Procter & Gamble, Hewlett-Packard, General Electric, Nordstrom
6. Teamwork
Break down departmental barriers
Establish cross-functional quality improvement teams
Quality Circles
Ford, Saturn Corporation, General Electric, Boeing, 3M
7. Motivating and Empowering People
Hire the right people
Provide relevant and adequate training
Encourage employee participation (Quality Circles and Quality Improvement Teams)
Push decision making to the lowest practical level
Employee suggestion schemes
Challenging jobs
Regard employees as internal customers
Provide specific and timely performance feedback
Federal Express, Dana Corporation, Toyota, Milliken, General Electric, Wal-Mart, Johnson & Johnson
8. Performance Management System
Establish customer-oriented, challenging and verifiable performance standards
Mutually agreed upon by management and employees
Measure performance
Take corrective action
General Electric, Federal Express, Motorola
9. Rewards and Recognition
Clear recognition and reward criteria
Link rewards directly with performance
Catch people doing things right
Recognize both individual and team achievements
Monetary benefits (bonuses, pay increase, profit sharing)
Non-monetary recognition (congratulatory notes, mementos, special lunches or dinners)
Exxon Chemicals Ltd. UK, Rank Xerox
10. Learning Organization
Training and retraining
Start with senior management and cascade down the organization
Encourage risk-taking and toleration of mistakes
Promote rapid sharing of information
Federal Express, Singapore Airlines, Motorola
11. Being Innovative, Responsive and Adaptive
Anticipate and adapt quickly to changing situations
Encourage employees to challenge the status quo
Treat information as the main strategic advantage
Southwest Airlines, IBM, 3M, Samsung
12. Modelling the Way
Honest, competent and inspiring
Walk your talk
Open to constructive criticism
Agent of change
Lifelong learner
Herb Kelleher, Sam Walton, Jack Welch
Organizational Vision and Mission Statement
Key Quality Goals
Strategies for attaining Vision and Quality Goals
Serving customers’ real needs
STRATEGIC QUALITY PLANNING
McDonald’s vision is to be the
world’s best quick service restaurant
experience. Being the best means
providing outstanding quality,
service, cleanliness, and value, so
that we make every customer in
every restaurant smile.
McDonald
EXAMPLE OF AN EFFECTIVE VISION STATEMENT
Our vision is to be earth’s most
customer centric company; to
build a place where people can
come to find and discover
anything they might want to buy
online.
Amazon
EXAMPLE OF AN EFFECTIVE VISION STATEMENT
Our mission is to provide any customer a means of moving people and things up, down, and sideways over short distances with higher reliability than any similar enterprise in the world. Otis Elevator To deliver a high-quality pizza, hot, within 30 minutes, at a fair price.
Domino’s Pizza
EXAMPLES OF MISSION STATEMENTS
A Quality Culture is a system
of shared values, beliefs and
norms that are conducive for
creating a Total Quality
Organization.
WHAT IS A QUALITY CULTURE?
Customer focus
Doing the right things right the first time
Open and honest communication
Teamwork
Employee involvement and empowerment
CORE VALUES OF A QUALITY CULTURE
Creative and fact-based problem solving
Continuous improvement
Building quality into work processes
Basing rewards and promotions on quality work
Responding positively to change
1. Recognizing the need for change
Compelling reasons for culture change
Broad desired outcomes
Leaders should create a sense of urgency
Formulate a compelling and clear organizational vision
STEPS IN CREATING AND SUSTAINING A QUALITY CULTURE
2. Diagnosing existing organizational culture
How is quality viewed?
Current values, beliefs and norms to be retained
Current values, beliefs and norms to be changed
Involve all stakeholder groups (managers, employees, customers)
3. Determining the desired culture which supports organizational vision and strategy
Specify acceptable and unacceptable behaviours
Close gaps between current and desired organizational culture
Ensure new culture is aligned with organizational vision and strategy
4. Communicating the desired culture to all organizational members
Few and compelling messages
Centred upon organizational vision, goals and core values
5. Modelling of desired behaviour by leaders
Leaders model desired behaviour in what they say and do
6. Conducting appropriate training to imbibe new culture
Start with top management and cascade down the organization
Related to actual work performed by employees and desired culture
7. Reinforcing the desired behaviour
Recognition and reward systems
8. Evaluating progress towards desired culture
Continually monitor and evaluate cultural change efforts
Take corrective action (if necessary)