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2ed technical meeting
1. PRESENTATION OUTLINE
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.
2. WHAT IS TOTAL QUALITY
MANAGEMENT?
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
3. MAIN FEATURES OF
TOTAL QUALITY MANAGEMENT
1. Customer-oriented.
2. Organization-wide.
3. Strategic Focus.
4. Change in Corporate Culture.
5. Process Management.
6. Continuous Improvement.
4. WHAT IS A TOTAL QUALITY
ORGANIZATION?
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
5. 10 FUNDAMENTAL
PRINCIPLES OF QUALITY
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.
6. 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. 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.
8. THE RACE TO
QUALITY IMPROVEMENT
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
9. IS YOUR ORGANIZATION
QUALITY-DRIVEN?
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?
10. 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?
11. 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?
12. TQM : THE SYSTEM MODEL
1. Social System
Corporate culture
Teamwork
Personal Quality
Employee participation and
development
Empowerment
Reward and recognition system
Communication
13. 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
14. TOTAL QUALITY MANAGEMENT MODEL
Process Improvement
•
•
•
•
Quality
Management
System
Strategic Quality Management
SWOT Analysis
• Corporate Goals
Customer Survey
• Corporate Values
• Departmental Purpose
Benchmarking
Analysis
Mission
Statement
• ISO 9000
• Process
Reengineering
Top Management's
Visible Commitment
•
•
•
•
Corporate Quality Council
Allocating Resources for QIPs
Monitoring Quality
Role Modelling
• Technology
• Quality Improvement
• Personal Quality
• Empowerment
• Training
• Teamwork
Projects
• Measurement &
Human Resource
Management
• Open & Honest
Communication
Evaluation
• Corrective Action
• Reward & Recognition
System
Continuous Improvement
15. TOTAL QUALITY MANAGEMENT MODEL
CUSTOMER-ORIENTED
SELF-RENEWAL (Physical, Mental, Spiritual, Social)
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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
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
QUALITY CULTURE
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16. IMPORTANCE OF
TOTAL QUALITY LEADERSHIP
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.
17. FIVE PRACTICES OF
EXEMPLARY 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
18. 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
19. 5. Encourage the Heart
Recognize contributions by
showing appreciation for
individual excellence
Celebrate the values and victories
by creating a spirit of community
J. M. Kouzes & B. Z. Posner
20. TOP MANAGEMENT’S ROLE IN TQM
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
Proper quality management structure
Conceive and communicate the
strategic quality plan
21.
Allocate adequate resources for quality
improvement projects
Undergo quality training and cascade
it down the organization
Walk the talk
Federal Express, Rank Xerox, Honda
Motor Company
Monitor quality performance
Recognize and reward superior quality
performance
22. 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
23. 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
24.
Act quickly on customers’
complaints
Continuously listen to
customers
Nordstrom, Rubbermaid, Walt
Disney, Marriott
25. 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
26. 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
27. 6. Teamwork
Break down departmental
barriers
Establish cross-functional quality
improvement teams
Quality Circles
Ford, Saturn Corporation, General
Electric, Boeing, 3M
28. 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
29. 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
30. 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
31. 9. Rewards and Recognition
Clear recognition and
criteria
Link rewards directly with
performance
Catch people doing things right
Recognize both individual and
team achievements
reward
33. 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
34. 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
35. 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
36. STRATEGIC QUALITY PLANNING
Organizational Vision and
Mission Statement
Key Quality Goals
Strategies for attaining
Vision and Quality Goals
Serving customers’ real needs
37. EXAMPLE OF AN
EFFECTIVE VISION STATEMENT
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
38. 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
39. EXAMPLES OF MISSION STATEMENTS
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
40. WHAT IS A QUALITY CULTURE?
A Quality Culture is a system
of shared values, beliefs and
norms that are conducive for
creating a Total Quality
Organization.
41. CORE VALUES OF
A QUALITY CULTURE
Customer focus
Doing the right things right the
first time
Open and honest communication
Teamwork
Employee involvement
and empowerment
42. Creative and fact-based problem
solving
Continuous improvement
Building quality into work processes
Basing rewards and promotions
on quality work
Responding positively to change
43. STEPS IN CREATING AND
SUSTAINING A QUALITY CULTURE
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
44. 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)
45. 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
46. 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
47. 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
48. 8. Evaluating progress towards
desired culture
Continually monitor and evaluate
cultural change efforts
Take corrective action
(if necessary)