Total Quality Management I
Introduction
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Total quality management is a
comprehensive and integrated way of
managing any organization in order to
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Meet the needs of the customer
consistently
Achieve continuous improvement in every
aspect of the organization’s activities
Introduction
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Quality is determined by the customer, use it to your
advantage or ignore it at your peril
Measurement must be used to reflect
progress/improvement
Measure your service or product the same way as the
customer does
Know what your customer wants, don’t assume you
know. Customers’ needs change, you must change
with them (or slightly ahead of them)
The vision is the starting point for TQM
Why TQM?
Customer Requirement
Fast
Response
Product Variety
Low Cost
Dependable
Delivery
Other Pressures
Profit
Import
Restrictions
Taxes and Duties
Cash
Far East
Competition
Product Alternatives
Definition of Quality
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Which car is a quality car, Mercedes
Benz or a Mini?
Quality is defined by customer
How Can We Measure
Progress?
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Customer satisfaction
Profitability/Performance
Product/Service Quality
Valuing Employees
Recoding, monitoring, and measuring
performance improvement is an essential
feature of any Total Quality drive
Components of the Vision
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Customer satisfaction and company
profitability
Continuous operational improvement
Continuous unit cost reduction
A want to culture instead of a have to
culture
Highly skilled workforce
Measuring Customer Satisfaction
and Company Profitability
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A direct link
If you don’t satisfy your customers, you lose
them and this has an adverse effect on profit
To measure customer satisfaction, find out
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What do they want?
How will they measure you?
How well you are doing and then doing it better
Measuring Continuous
Operation Improvement
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Timed-based competition is rapidly
becoming a critical factor in winning
and retaining customers
The intention with TQM is to
significantly reduce the operating costs
and the response times in accordance
with customer requirements
Measuring Continuous Unit
Cost Reduction
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Manufactured product, average cost per customer in
a service environment
Waste reduction
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Material
Space
Time
Movement/effort
Power
Plant
Cash
Errors, mistakes, and re-work
Measuring Continuous Unit
Cost Reduction
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1. unit cost reduction via day-to-day
routines, processes and procedures
(continuous operational improvement)
2. by involvement of the people in the
business. Get managers to set the
improvement targets collaboratively and
then empower the team members to
find the solutions
Measuring Continuous Unit
Cost Reduction
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3. deliberate quality improvement activities, e.g. clearly defined
projects which are targeted on specific problem/cost areas such
as
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Reduced wasted stationery by
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25% in 6 months
50% in 12 months
90% in 14 months
Increase the productivity of the cutting room by 60% over the next
12 months
In 6 months double the utilization of the desk top publishing facility
and reduce our cash flow to the external printers by 30%
Re-schedule plant maintenance so that the maintenance crew’s
overtime is cut by 60% whilst maintaining plant efficiency
Recognize central administration so that equipment hire charges
are reduced by 15% within 6 months without increasing staff costs
by more than 3%
Measuring ‘Want to’ Culture
Instead of ‘Have to’ Culture
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The most difficult aspect of TQM but
the critical factor
Involving people to measure cultural
change
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Before and after attitude surveys
Management style questionnaires
Interviews
Group discussion
Measuring ‘Want to’ Culture
Instead of ‘Have to’ Culture
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Another useful barometer of cultural change
is fluctuations or changes in level of
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Sickness
Absenteeism
Team performance levels
Number of ideas in the suggestion scheme
Number of people leaving
Number of people applying to join
Number of people requesting appraisals
Level of support for sports and social events
Measuring a Highly Skilled
Workforce
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The ultimate measure of skill is: can the person do
the job to the required standard?
The success achieved by most organizations is
directly proportional to the effectiveness of the work
team
Team effectiveness increases with the flexibility of its
members, i.e. being highly skilled in more than one
task or role
There is a link between skills profiles and job
specifications
With TQM a job specification is a dynamic description
of a job which will change periodically
How Does a Business Achieve
the Vision?
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Training and Retraining
Business Improvement Process
Projects
Management Style and Cultural Change
Effective Personal and Organizational
Communications
Training and Retraining
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Success of any organization depends on
the competence of the employees
Difference between training in TQM and
traditional approach
Policy, managing the learning
experience, who is responsible, how to
gain commitment, how to evaluate it
Business Improvement
Process
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Addresses the structure or system approach
to managing the organization
The aim is to build an internal
supplier/customer chain which is dedicated to
giving the external customer what they want
Cost of Quality: enables teams to breakdown
costs item by item and exercise more control
over them
Projects
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Organizations are judged by:
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Customers
Shareholders
Employees
General public
They are judged on
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How good the product or service is
The way they manage or resolve their problems
Projects
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Projects and project teams represent an
approach to finding permanent solutions to
problems rather than ‘quick fixes’.
Project teams are usually created to address
quality improvement problems, the resolution
of which takes the organization closer to
achieving the vision
Management Style and
Cultural Change
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TQM will not grow in an environment of
autocracy
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Them and us
Employee feel threatened
The only opportunity to speak to their manager is
when they have done something wrong
TQM requires many managers and employees
to behave differently
Effective Personal and
Organizational Communications
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Traditional managerial style emphasizes on
transmitting skills
The TQM manager needs skills to empower
people and to foster creativity
Various communication mechanisms
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Team briefings
Newsletters
Notice boards
Progress charts
Advantages of TQM for an
Organization
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Profitability (by satisfying customers)
Job security (by satisfying customers)
Keep the costs down
Develop innovative approaches
Being the best
People enjoying working here
Good future
Everyone is accountable
Get to learn new things
My ideas get listen to and some get put into practice
I’m not just a number
Capital for re-investment
Quality organization
Implications of TQM for an
Organization
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Invest in training generally but practically in TQM
training
Managers to spend time involved in training
It could be difficult/confusing
It won’t happen overnight
Up-front investment of both money and time in
training and TQM awareness
If you can’t change the people change the people
Managers have to get close to their people
Everyone is going to be held accountable
Total Quality Management II
The Vision
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The vision is the start point for all TQM initiatives
The vision or mission statement describes the goals
of the organizations
It should state as clearly as possible exactly what the
company is trying to achieve
While the vision can be a powerful force for positive
change, unless carefully monitored it can have
negative consequences
To be effective the vision should offer a goal which is
always just out of reach but never that far out of
reach that is not worth striving towards
The Vision
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A quality vision statement will make explicit the
organization’s approach to:
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Customer satisfaction
Organizational performance
Product/service quality
How employees will be treated
Social responsibility
Without full agreement and commitment at the top,
TQM will not work
Once the vision has been created it needs to be
cascaded down to every single employee
Why is the Vision Important?
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Where a company does not have a
guiding vision which is understood by
all employees, then different sections of
the company may pull in different
directions
Gandhi, Martin Luther King and other
great leaders used visionary messages
to change the course of history
What Should the Vision
Include?
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1. Customer Satisfaction: achieving customer
satisfaction continually and consistently is essential.
Customers could be internal or external
2. Organizational Performance: the organization must
remain profitable. In TQM, knowledge about financial
indicators and how the organization is performing
needs to be widely available
3. Product/Service Quality: it’s the cornerstone of
TQM. Quality is achieved through ownership and
personal responsibility rather than giving the
responsibility to a quality control department
What Should the Vision
Include?
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4. Treatment of Employees: the above three
goals can be achieved only through the
cooperation of all employees.
5. Social Responsibility: organizations take
from wider society and must act responsibly.
The more they are prepared to state this in
their vision, the more they will gain in respect
and support from wider society
Example: Morgan State Mission
Who Should Produce the
Vision?
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By the very top group within an organization
Any bottom-up approach is doomed to failure in TQM
The senior group needs to give its whole-hearted
commitment to whatever vision it creates
Reaching agreement on the mission may appear easy
but in practice is often quite a challenge
Next step, cascading:
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Start the process of getting the whole organization to own
the vision
Forewarn everyone that considerable change in every
department will follow in the future
Training and Retraining
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Training process involves 4 stages:
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Stage 1:
Stage 2:
Stage 3:
it stick)
Stage 4:
Diagnosing (Getting it right)
Learning events (Doing it well)
Transferring the learning (Making
Evaluating
How Do We Diagnose Training
Needs
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Make sure that training or learning experience is
focused and contributes to improved performance
Diagnosing training needs is concern with finding
whether people are doing their jobs properly
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Knows what to do (specification)
Knows how to do it (skill and knowledge)
Is equipped to do it (resources)
Knows how well it needs to be done (measurement and
comparison)
Is able to effect it (involvement)
Wants to do it (motivation)
Helpful Questions During
Diagnostic Phase
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Why are we doing this?
What tasks cause difficulty?
What objectives are met/not met?
What will it look like when the problem no longer exists
What changes can be envisaged in the next year or so?
What is likely to challenge the person in the near future?
Are there going to be any changes in responsibilities or
circumstances which you know about? If so, what?
Any special events? If so, what?
What is the person’s next development step or promotion likely
to be? What are the key tasks? Which of these tasks could
cause difficulty?
What succession planning do you have?
Helpful Questions During
Diagnostic Phase (Cont’d)
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What are the strategic strengths of your organization? What is
the evidence?
What are the strategic weaknesses of your organization? What
threat do these present now/in the future?
What do you want the future to look like? How do you want
people to operate in the future?
What will happen if we do nothing?
How will we know if any training or development action is
successful?
What are your competitors doing?
Who are your customers and how do they measure you? How
well do you meet your customers’ requirements?
What are your improvement targets for this year?
Who are your best people? What do they do?
Training
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Asking the above questions can help us to
identify three types of training needs:
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Reactive: where the problem exists and training is
required to remove the problem
Flexibility based: where training is needed to
enable people to undertake a range of new tasks
as well as their existing ones.
Developmental: involves training people over a
period of time in readiness for a future
requirement or opportunity
Example
GOAL
What is this agreement about? What’s the title?
IMPROVING MY LEADERSHIP SKILLS
OBJECTIVES/COMPETENCES
What knowledge do you wish to develop?
What skills do you intend to develop?
1. HOW TO GIVE INSTRUCTIONS WITHOUT
CAUSING OFFENCE
2. IMPROVE MY DELEGATION SKILLS
3. HOW TO HANDLE LOW PERFORMERS
LEARNING PROCESS
How will you achieve the objectives?
What activities/exercises will you carry out?
ATTEND A COURSE ON LEADERSHIP
SELF-ASSESMENT QUESTIONNAIRS
RESOURCES AND SUPPORT
What resources could you use (books, videos,…)
What other support could be useful?
WORK THROUGH SITUATIONAL
LEADERSHIP II SELF STUDY PACKAGE
READ THE ‘1 MINUTE MANAGER’
EVALUATION
What will be the evidence to demonstrate what
you have learned
1. BEFORE AND AFTER FEEDBACK FROM MY
MANAGER AND TEAM
2. TEAM MEMBERS UNDERTAKING NEW
ESPONSIBILITIES
3. MEASURABLE IMPROVED PERFORMANCE
SUCCESS CRITERIA
What measures will be used to ensure the
learning has been successful
NOTICABLE IMPROVEMENT IN TEAM
RELATIONS OVER NEXT THREE MONTHS
MY SPENDING MORE TIME PLANNING, LESS
FIRE FIGHTING
15% PERFORMANCE IMPROVEMENT FROM
LOW PERFORMERS
How to Convert Training
Needs into Learning Events?
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Attending a formal training course
Additional duties (horizontal loading)
Extra responsibilities (vertical loading)
Self-study material- distance learning
Shadowing-mentoring
Action learning
Passing on the skills we’ve learnrd
Special projects
On-the-job training
How to Convert Training
Needs into Learning Events?
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Learning events must be underpinned by a model of
how people learn.
Kolb cycle (learning cycle):
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Concrete experience: The cycle suggests that it is best to
start with an experience
Observation and reflection: encourage the manager to
reflect and discuss how they had acted
Formation of abstract concepts and generalization: allow
managers to generalize about alternative management
styles together with options they could try out. Planning new
behavior
Testing implications of concepts in new situations
How to Ensure that Learning
Sticks?
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Learning would be useless unless the learning
is applied back in the workplace
Where possible use the workplace as the
center of learning problems
Where this is not possible, take this into
account and help with the transfer of learning
and/or skills back to the workplace (RSG
example)
5-Stage Effective Debriefing
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1) Preparation: Manager formalizes the event, prepares the
learner and let them know
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2) Introduction: ask icebreaking questions aimed at getting the
learner to feel comfortable
3) Gathering information
4) Application
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Why/where/when the meeting takes place
How do you intend to use the new knowledge/skill?
What will you be doing differently?
What support do you want to apply the training successfully?
How will you recognize change/improvement?
5) Measurement
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How will you demonstrate that the training has been successful?
Timescale for change? The effect of training?
How to Evaluate Training?
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The learner’s valuation: clarify the expectations
before training, in the training process, and after
training
The manager’s evaluation
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Improvement in response time
Ability to carryout new tasks
Reduction in material wastage
Reduction in sickness/absenteeism
Reduction in machine downtime
Improved staff retention
Improved unit/individual efficiency level
Improvement in the quality of product
Improved financial performance
The business Improvement
Process (BIP)
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BIP is the framework on which the TQM organization
develops
BIP is the organizational structure on which TQM is
built
In traditional organization the chart is a pyramid with
the chief executive at the top, the board members
underneath then the senior managers, ….
Advantages:
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Everyone knows who their boss is and accountability is clear
The structure facilitates quick communication from top to
bottom and vice versa
The structure provides a sense of security- everyone knows
their location
The Disadvantages of the
Pyramid Structure
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TQM emphasizes on customers, they are not
represented in the pyramid
The pyramid does not show how work flows
through the organization
It does not show how one department
supports or service others
The emphasis is on who is in charge of whom
It does not encourage people to give
feedback
It reinforces sluggish transfer of information
What Is Process Management?
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Is a way of looking at how a business is managed.
Business management chart:
BIP Stage 1a: confirm that you have a customer(s)
for your products. Then determine which function or
department is responsible for working closely with
customers. (sales)
BIP Stage 1b: sales department passes the orders
to the production planning department
BIP Stage 1c: production planning coordinates
purchasing of raw material and synchronize material
deliveries with manufacturing. Purchasing,
production, and warehouse depatment
Business Management Chart
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BIP Stage 1d: the purchasing department then need to order
and receive all raw material from external suppliers
BIP Stage 1e: the production department then makes the
products and hands them onto the warehouse and distribution
departments
BIP Stage 1f: a number of services provides continuous
support for this process
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Personnel: recruitment, employee welfare,…
Information Technology: computer system maintenance and
development
Finance: wages, cost control, and financing
Industrial Engineering: setting operational values and assisting in
organizing workflow
chart p.94
Projects
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Projects are important method for insuring
continuous improvement by involving
everyone in the business
Projects require substantial training activity
For projects to be successful they need to be
supported by a formal structure of quality
teams at both company and department level
A project team is not a permanent group
A quality improvement project follows six
stages
The Structure of Quality
Improvement Projects
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Stage 1: Defining the symptoms: carried out
by the team leader
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How is the customer affected by the problem? All
internal and external customers should be asked
for their views
How can the scale of the problem be measured?
What does the problem cost? Financial terms,
time, loss of production, reduce customer
satisfaction, damage to company or brand image
The Structure of Quality
Improvement Projects
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Stage 2: Making a project proposal
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The project title
Source of problem
Statement of problem
The objective
Means of measurement
Plan of action
Name of the project leader
The project team
The Structure of Quality
Improvement Projects
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Stage 3: Data collection, interpretation and
problem analysis: the cause of the problem
and the appropriate solution
Stage 4: Submitting proposals for the
solution, planning implementation (for
approval)
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What barriers exist to implementation (resistance
to change)
What actions need to be taken to get things
moving
How will the new system be maintained
The Structure of Quality
Improvement Projects
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Stage 5: Communicating and training:
informing everyone who needs to know
and offering appropriate training
Stage 6: Implementation and
documentation
Management Style and Culture
Change
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Successful introduction of TQM requires a lot of
energy to be placed in cultural change: changing the
way people in the organization manage their
relationships with each other
TQM requires people to have a commitment to
quality and to the company
It requires a very different management style from
the traditional one (empowering people rather than
controlling people)
Personal change workshops are a way of helping
people understand the culture of the organization
Communication
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Communication is fundamental to the success of TQM
Everyone in the organization requires a high level of
communication skills
It is important to regularly audit the communication
process to identify where barrier exist
There is a wide range of communication media
available. These not only transfer information but can
also convey subtle messages about the management
style of the organization.
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