Total Quality Management

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GE2022 TOTAL QUALITY MANAGEMENT UNIT I - INTRODUCTION
Introduction - Need for quality - Evolution of quality - Definition of quality - Dimensions of manufacturing and service quality - Basic concepts of TQM - Definition of TQM – TQM Framework - Contributions of Deming, , Juran and Crosby – Barriers to TQM.

Unit One -Introduction
A. Quality Concepts B. History of quality C. TQM Concepts D. Quality management Guru‟s Contributions. E. Barriers to TQM

A. Quality Concepts

Synopsis
1. Introduction to Quality 2. Meaning 3. Definition 4. Quantified 5. Characteristics 6. Need for quality 7. Benefits of Quality 8. Dimensions of quality 9. Dimensions of Service quality
1.

Introduction to Quality
Quality concepts are evolving continuously for more than 100 years. Organization need to

adapt quality concepts to gain competitive advantage. Quality is also refers to Excellence. Total Quality Management (TQM) is an enhancement to the traditional way of doing business. Total Quality Management Made up of the whole Degree of Excellence a Product or Service provides. Art of handling, controlling, directing etc.

TQM is the application of quantitative methods and human resources to improve all the processes within an organization and exceed CUSTOMER NEEDS now and in the future. Concept of Quality     Conformance to specifications Fitness for use Value for price Support services

2. Meaning of Quality Quality in modern management means everything that an organization does in the eyes of its customer. “Quality is fitness for use” -Juran Q = Quality for Excellence. U = Understanding Customer Needs A = Action to achieve customer appreciations L = Leadership – Determination to become L = Involving all people T = Team spirit to work for a common goal Y = Yardstick to measure progress 3. Definition of Quality
According to American Society of Quality Control, “Quality is the totality of features and characteristics of a product or services that bear on its ability to satisfy a given need”

4. Quality Quantified as
Q = P/ E Q = Quality P = Performance E = expectations

5. Characteristics of Quality      6. Need for Quality If an a organization aims for a long-term success and growth it has to maintain quality in order to  Satisfy for the customer and  To have competitive advantage. 7. Benefits of Quality  Positive company Image  Increases market share  Reduces cost  Avoids unnecessary costs  Improve Competitive ability both nationally and Technical Psychological Time Base Item Contractual Ethical

internationally.

8. Various Dimensions of Quality? 1) Performance 2) Features 3) Conformance 4) Reliability 5) Durability 6) Service 7) Response 8) Aesthetics 9) Reputation 10) Safety 11) Usability 12) Maintainability 13) Uniformity 14) Compatibility 9. Various Dimensions of service Quality? 1) 2) 3) 4) 5) Tangibles Reliability Responsiveness Assurance Empathy

B. History of Quality

C. TQM Concepts Synopsis
1. TQM Definition and it‟s Characteristics 2. Concepts of TQM 3. Principles of TQM 4. Elements of TQM 5. TQM tools 6. 3 Pillars of TQM 7. 4 „C‟s of TQM 8. Evolution of TQM 1. TQM Definition
“Total Quality Management is a management approach that tries to achieve and sustain long term organizational success by encouraging employee feedback and participation, satisfying customer needs and expectations, respecting societal values and beliefs, and obeying governmental statutes and regulations.”

Characteristics of TQM is a:          2. Concepts of TQM Total Quality management is the management approach of an organization, centered on quality, based on the participation of all its members and aiming at long – term success through customer satisfaction and benefits to all members of the organization and to society.       Top management commitment Focus on the customer Effective employee involvement Continuous improvement Treating suppliers as partners Establishing performance measures. Management philosophy to guide a process of change. Customer – Oriented management system Teamwork Cable for planning Strategy for continuously improving in all levels Achieving results Recognizes internal customer- Supplier relationship Emphasize the importance of measurement Aims at customer need and satisfying the customer.

3. Principles of TQM TQM focuses at two levels firstly an “External “one aimed at identifying customer requirements and secondly an “Internal” one focusing on  Organizational  System and  Procedures to meet those requirements right the first time and every time.              4. TQM Elements (i) TQM Principles and practices  Leadership (People and relationships)  Customer focus  Employee involvement  Supplier partnership  Continuous process improvement  Performance measures ii) TQM Tools and Techniques       5. Pillars of TQM     P1 ------ Satisfying Customer P2 ------- System / Process P3 ------- People P4 ------- Improvement tools. Seven tools of quality Six sigma process capability Benchmarking Failure Mode and Effect Analysis (FMEA) Quality check QFD Leadership Commitment Quality strategy Vision Values Quality culture Customer Orientation Employee Empowerment and Participation Team work Approach Communication Process centered Training Problem solving and TQM Tools Continuous improvement Measurement and Audit

6. 4”C” of TQM     F. Commitment Competence Communication Continues Improvement.

Quality management Guru‟s Contributions.

1. Explain Deming Philosophy?
Deming‟s philosophy is given in his 14 points. Most of these points were given in a seminar for 21 presidents of leading Japanese industry in 1950. W. Edwards Deming is often referred to as the ³ father of quality control.´ He was a statistics professor at New York University in the 1940s. After World War II he assisted many Japanese companies in improving quality. The Japanese regarded him so highly that in 1951 they established the Deming Prize. Deming on American was the senior Quality guru. 1928 – 1946 – 1951 1956 1960

Deming Contributions     14 points on route of quality Deming cycle Seven deadly diseases of management System of profound knowledge

14 points on route of quality

1. Create and publish the aim and purpose of the organization 2. Learn the new philosophy  Understand the purpose of inspection  4. Stop awarding business based on price along.  Improve constantly and forever the system.  6. Institute training. 7. Teach an institute leadership.  Dry out fear, create trust and create climate for innovation.  9. Optimize the efforts of teams, group and staff areas. 10. Eliminate exhortations for the work force. 11. Eliminate management by objective (MOB). 12. Remove barriers that rob people of workmanship.
13. Encourage education and self improvement for everyone. 14. Take action to accomplish transformation.

Joseph M Juran Juran born in Romania (1904 ) and emigrated to America in 1912.   1951 “ Published Quality Control Hand book” 1950 Like Deming, travelled to Japan to conduct top and middle level executive seminars on planning organizational issues, management responsibilities for quality and the need to set and monitor improvement target goals.

Juran Books Names:   Quality Planning and Analysis Juran on Leadership for Quality

Juran contributions 1. 2. 3. 4. 5. Internal Customer Cost of Quality Quality trilogy Juran‟s 10 Steps for Quality improvement The breakthrough Concept

Juran Quality Definition  Product performance that results in customer satisfaction.  Freedom from product deficiencies, which avoids customer dissatisfaction, simply summarized as “fitness for use”. Fitness for use 1. Quality of design 2. Quality of Conformance 3. Availability 4. Safety and 5. Field Use 1 Internal Customer Juran realised that the customer was not just the end customer and that each person along the chain has an internal customer that is supplier and a customer. 2 Cost of Quality Juran Classified the cost of quality into 3 classes as Failure Costs: Scrap, Reworks, Corrective actions, Warranty claims Customer Complaints, Loss of cost. Appraisal Cost : Inspection, Compliance auditing and Investigations. Prevention Cost :Training ,Preventive auditing and Process improvement implementation.

3 Juran‟s Quality Trilogy Juran views quality as fitness for use.Juran divides quality Management into 3 parts. 1.Quality Planning : Objectives are to determine quality goals. 1. Determine 2. Thrir 3. Develop 4. Develop 5. 2.Quality Control : Objectives are to monitor performance to Compare objective with achievements and to act reduce the gap. 1. Determine 2. Set 3. Measure 4. Compare 5. Act 3. Quality Improvement : Objectives are to reduce waste, to enhance logistics to improve employee morale. 1. 2. 3. 4. 5. To Reduce Waste To Enhance logistics To Improve employee morale To Improve Profitability To Satisfy Customers

4 Explain Juran‟s 10 Steps to Quality Improvement. 1. Build awareness of the need and opportunity for improvement. 2. Set goals for improvement. 3. Organize to reach the goals (establish a quality council, identify problems, select projects, appoint teams, designate facilitators). 4. Provide training. 5. Carry out projects to solve problems. 6. Report progress. 7. Give recognition. 8. Communicate results. 9. Keep score. 10. Maintain momentum by making annual improvement part of the regular systems and processes of the company. 5. The Breakthrough Concept: Juran‟s breakthrough concerns itself with the product /service Life cycle In essence, this splits it up into two areas.  The “Journey from Symptom to cause.  The “Journey from cause to remedy” 

PHILIP CROSBY    Crosby is an American known for quality gurus. Crosby rose to international fame mainly thanks to his teachings on quality management. He is best known for the concepts of  “Zero Defects” and  “Do it right first time”

 He has authored many book including  “Quality is Free”  “Quality without Tears”  “Let‟s talk Quality and leading . The art of becoming an Executive”. CROBSY CONTRIBUTIONS 1. Four absolutes of quality 2. Fourteen steps to quality Management 3. Crosby quality Vaccine 1. Crosby Absolutes for quality Management. First Absolute: The definition of quality is conformance to requirement, not goodness. Second Absolute: The system foe causing quality is preventive, not appraisal. Third Absolute: The performance standard must be zero defect, not “that‟s close enough”. Fourth Absolute: The measurement of quality is the price of non-conformance not indexes. Explain Crosby‟s 14 Steps to improve Quality. 1. Make it clear that management is committed to quality. 2. Form quality improvement teams with representatives from each department. 3. Determine where current and potential quality problems lie. 4. Evaluate the cost of quality and explain its use as a management tool. 5. Raise the quality awareness and personal concern of all employees. 6. Take actions to correct problems identified through previous steps. 7. Establish a committee for the zero-defects program. 8. Train supervisors to actively carry out their part of the quality improvement program.

9. Hold a “zero-defects day” to let all employees realize that there has been a change. 10. Encourage individuals to establish improvement goals for themselves and their groups. 11. Encourage employees to communicate to management the obstacles they face in attaining their improvement goals. 12. Recognize and appreciate those who participate. 13. Establish quality councils to communicate on a regular basis. 14. Do it all over again to emphasize that the quality improvement program never ends. CROSBY‟S QUALITY VACCINE The Vaccine is explained as medicine for management to prevent poor quality. Five Sections of Crosby‟s quality Vaccine Section 1Section 2Section 3Section 4Section 5D. Barriers in TQM Implementing  Lack of Top Management Commitment and vision  Inability to change Organization culture and management style  Misunderstanding about the concept of TQM  Improper planning  Lack of employees commitment  Lack of effective communication.  Lack of interest or in competence of leaders  Non-application of proper tools and techniques  Inadequate use of empowerment and team work  Deciding how to start.  Content with certifications or Awards  Inadequate attention to internal and external customers.  Fail to understand relationship  Gaining the involvement of non-manufacturing departments. Integrity System‟s Communication Operations Policies

UNIT II TQM PRINCIPLES
Leadership – Strategic quality planning, Quality statements - Customer focus – Customer orientation, Customer satisfaction, Customer complaints, Customer retention - Employee involvement – Motivation, Empowerment, Team and Teamwork, Recognition and Reward, Performance appraisal - Continuous process improvement – PDSA cycle, 5s, Kaizen Supplier partnership – Partnering, Supplier selection, Supplier Rating. Leadership - Concepts A leader is one who instills purposes, not one who controls by brute force. He strengthens and inspires the followers to accomplish shared goals. Leaders  Shape the Organization‟s value  Promote the Organization‟s value  Protect the Organization‟s value and  Exemplifies the Organization values CHARACTERISTICS OF QUALITY LEADERS: 1. They give priority attention to external and internal customers and their needs. 2. They empower, rather than control, subordinates. 3. They emphasis improvement rather than maintenance. 4. They emphasis prevention. 5. They emphasis collaboration rather than competition. 6. They train and coach, rather than direct and supervise. 7. They learn from the problems. 8. They continually try to improve communications. 9. They continually demonstrate their commitment to quality. 10. They choose suppliers on the basis of quality, not price. 11. They establish organizational systems to support the quality effort. 12. They encourage and recognize team effort. LEADERSHIP CONCEPTS : A leader should have the following concepts 1. People, Paradoxically, need security and independence at the same time. 2. People are sensitive to external and punishments and yet are also strongly self motivated.

3. People like to hear a kind word of praise. Catch people doing something right, so you can pat them on the back. 4. People can process only a few facts at a time; thus, a leader needs to keep things simple. 5. People trust their gut reaction more than statistical data. 6. People distrust a leader‟s rhetoric if the words are inconsistent with the leader‟s actions.
THE 7 HABITS OF HIGHLY EFFECTIVE PEOPLE : Stephen R.Covey has based his foundation for success on the character Ethic Golden Rule- Character Ethic          Integrity Humility Fidelity Temperance Courage Justice Patience Simplicity Modesty

1. Habit – 1 Be Proactive 2. Habit – 2Begin with the End in mind 3. Habit – 3 Put First Things First 4. Habit – 4 Think Win – Win 5. Habit – 5 Seek First to Understand, then to Be Understood 6. Habit – 6 Synergy 7. Habit – 7 Sharpen the Saw (Renewal)
LEADERSHIP ROLES-[Eight ] 1. Producer Role 2. Director Role 3. Coordinator Role 4. Checker Role 5. Stimulator Role 6. Mentor Role 7. Innovator Role 8. Negotiator Role

Quality Planning A. Strategic Quality Planning B. Process Quality Planning C. Product Quality Planning Quality Planning: Quality planning is the pre-determined activities in order to achieve conformation to the requirements. M any organizations are finding that strategic quality plans and business plans are inseparable. The quality planning procedure given by Joseph.A.Juran has the following steps:      Identify the customers Determine their needs Translate those needs into our language. Develop a product that can respond to those needs Optimize the product features to meet our and customer need is far from simple. Quality Costs: All organizations make use of the concept of identifying the costs needed to carry out the various functions –  product development,  marketing,  personnel,  production etc., During the 1950‟s the concept of ³Quality Cost´ emerged. Different people assigned different meanings to the term. Some people equated quality cost with the cost of attaining quality; some people equated the term with the extra incurred due to poor quality. But, the widely accepted thing is ³Quality cost is the extra cost incurred due to poor or bad quality of the product or service´. Categories of Quality Cost: Many companies summarize quality costs into four broad categories. They are, a) Internal failure costs - The cost associated with defects that are found prior to transfer of the product to the customer. b) The cost associated with defects that are found after product is shipped to the customer. c) Appraisal costs - The cost incurred in determining the degree of conformance to quality requirement. d) Prevention costs - The cost incurred in keeping failure and

appraisal costs to a mini mum. Sometimes we can also include the hidden costs i.e., implicit costs.

A. Strategic quality planning Strategy refers to the large –scale future oriented plans for interacting with the competitive environment to optimize achievement of org. objectives” Strategic planning SP sets the long-term direction of the organization in which it wants to proceed in future. Definition SP “The process of deciding on objectives of the organization, on changes, on these objective on the resource used to attain these objectives and on the policies that to govern the acquisition, use and disposition of these of these resources”. Definition of quality “Fitness for use and purpose at the most economical level” Strategic Planning Process-Seven Step In order to integrate quality with the strategic planning process, a systematic and sequential procedure has to be adopted. Strategic Planning: There are seven basic steps to strategic quality planning. a) Customer needs: The basic step is the identification of customer and their needs and wants An.Org must seek its customer‟s requirement, expectations and assess future trends before developing ASP. b) Customer positioning Second step requires the planners to determine its customer, in order to become successful, the org should concentrate and consolidate its position in its areas of excellence. Eg: Colgate past. c) Predict the future Because it will effect product /services Tools as Demographic Technical assessments

d) Gap analysis Identify the gab between the current state and the future state of the org. This concept is also known as ”value stream mapping ” e) Closing the gap Now the planners should develop a specific plan to close the gaps. This process is also termed as “process improvement”.

f) Alignment Now the revised plan should be aligned with the mission vision and core values and concepts of the org. g) Implementation Strategic planning can be performed by any organization. It can be highly effective, allowing organizations to do the right thing at the right time, every time. QUALIT STATEMENTS The quality statement include the    Vision Statement Mission statement and Quality statement

Once developed, they are only occasionally reviewed and updated. They are part of the strategic planning process. The utililaisation of the 3 statements varies considerably from organization. In fact, small organization may use the quality policy statement. (1) Vision Statement The vision statement is a short declaration of what an organization aspires to be tomorrow. It is the ideal state that might never be reached but which you continually strive to achieve. Successful visions are  Timeless  Inspirational and  Become deeply shared within the organization Example:

(2) Mission statement The mission statement answers the following questions.  Who we are?  Who are the customers?  What we do? and  How w do it? This statement is usually one paragraph, it is easy to understand, and describe the function of the organization . It provides a clear statement of purpose for employees  Customer and Suppliers (3) Quality Policy Statement The quality policy is a guide for everyone in the organization as to how they should provide products and service to the customers. It should be written by the CEO with feedback from the work force and be approved by the quality council. Characteristics of QPS  Quality is first among equals  Meet the needs of the internal and external customer  Equal or exceed the competition  Continually improve the quality  Include business and production practices  Utilise the entire work force  A quality policy is a requirement ISO/QS 9000. Introduction to Quality Planning [Designing the desired and deliverable quality Std is the job quality planning.] Quality planning is a strategic planning process in which quality is embedded in each and every step. Quality planning is needed  To set quality objective and target  To take into account the customer needs and wants  To take into account of product marketability  To carry out pre-production process capability  To establish the relative importance of the quality characteristics and specifications

 To communicate it to the production live people as well as to the vendors supplying the raw materials.  To look after various under quality control aspects.  To establish statistical control techniques charts and sampling plans.  To establish training programmes. C. Product Quality planning Process Quality Planning - Building quality into various Processes such as        Design Purchase Store Issue Production Packing and Dispatch

If the quality is build into process that delivers product, it helps in preventing defects and delays. For this quality need to be planned at process in all levels that is explain      Product Quality Planning PQP is for building product quality with a specific end product for each end product there is a specific product quality plan which precisely indicate how each product should be manufacture by using which machines . What test should be conducted by using which test set ups, what should be the acceptance criteria for each component and finished product and so on. Product Quality Planning Should Address        Capability and qualification of equipment Operating conditions for the product Use or application of product Disposal of the product Product life cycle Environment impact of the product Impact of the use of natural resources including materials and energy. Inputs Outputs Review Validation and Changes

Strategic quality planning    Understand existing product and process Identify potential customers Identify potential customer needs in their language by using QFD

Product quality planning     Process quality planning     Establish process stability by measuring process performance Complete process capability by considering specification and process performance. Transfer process to operations. Process ready to produce Translate customer needs in the form of product features Develop specification for product features Optimize product design to set product goals Develop process to meet product goals

Customer
Definition of customer A customer can be defined as ”One who purchases a product or service”. Six Basic Requirements of Internal and External customer       High levels of quality A high degree of flexibility High levels of services Low costs Quick response Consistency

Hierarchy of Customer Requirement    Delight Added Values Core Needs

Customer Focus
Factors Influencing Customer Purchases          Price Company in brand Name Customer Need Past Experience Prior Relationship with supplier Peer Recommendation Information on Company website Trade show demonstration Prior Relationship with sales person

1.Customer Orientation     1. Develop  Product development should be doen keeping customer needs into mind.  Product should be customer oriented  The Product development cycle time should be minimal. 2. Manufacture  Manufacture should be such that it gives a best products to customer  Quality should not be compromised  Manufacturing cycle time should be reduced 3. Market  Indentifying and Targeting the right customer  Analyzing the demand as early as possible  Customization of the product for the market Develop Manufacture Market Deliver

4. Deliver  Deliver to the target customer  Reduce delivery time  Value for money products 2. Customer Orientation Strategy    Price Sensitive Orientation Quality Sensitive Orientation Niche Strategy

Customer Orientation Strategy COS is the way that a business focuses its product or service to customers. There are many specific ways of doing this ,but in general there are 3 ways (A) Price sensitive Orientation The price sensitive orientation involves targeting customers who are mainly focused price. This orients a company towards a potentially large market segments. In this strategy  Company has to reduce its overheads.  If helps discounting price and offers. (B) Quality Sensitive Orientation-Market leaders This strategy can allow a company to achieve market leadership in an industry where quality is considered more important than price.To become a market leader means that it is the preferred choice of most consumers. (C) Niche Strategy The strategy involves finding a small audience and aiming a particular product at the audience. This means that the product is not necessarily the best or the cheapest but it is the best fits the needs of a particular consumer. CUSTOMER SATISFACTION CS a business term is a measure of how product and services supplied by a company meet its customer expectation .

Importance of Customer Satisfaction 1. Customer satisfaction provides a leading indicator of consumer purchase intentions and loyalty. 2. Customer satisfaction data are among the most frequently collected as it indicates the market share. 3. It helps in determining how the organization providing it product and services to the customer. 4. It is important to get customer loyalty. 5. Satisfied customer advertise the product or service at free of cost. 6. Every satisfied customer tells four other persons but every dissatisfied customer tells to 16 persons. Measuring Customer Satisfaction Customer Satisfaction measured at the individual level, but it is almost always reported at an aggregate level. It can be measured along various dimensions such as          Performance or fitness for use Availability and on time delivery Reliability and Maintainability Features of Product and services offered After sales Service Warranty and guarantee given bProduct and services offered After sales Service Warranty and guarantee given by seller Price which represents value for money concept

Customer satisfaction is generally measured on a five –point scale      Very satisfied Satisfied Neutral Dissatisfied Very dissatisfied

Customer Satisfaction Model The importance of customer satisfaction four goals of any business are  To satisfy its customer  To achieve higher customer satisfaction than its competitors  To retain customers in the long run  To gain market share Customer satisfaction Index American Society for quality control released the first American customer satisfaction Index (ACSI). A new economic indicator that measures customer satisfaction at the national level. The ACSI is based on customer evaluation of the quality of goals and services purchased in the us and produced by both domestic and foreign firms with a substantial us market share. Customer Retention   Meaning of customer Retention Customer Retention Rate

JOEL E.ROSS-CUSTOMER RETENTION MODEL  He stresses that CR will improve profit  In order to retain customer it is necessary that system and human components be kept in order. Customer Retention Model show that  Employ satisfaction in the company is the driver for the whole exercise.  If the employees are not satisfied customer retention will be impossible In Customer Retention Model we have     Human System Driver and Out come

Customer Retention - It is a ability of a company to attract and retain new customer. Customer retention is more than giving the customer what they accept it‟s about exceeding their expectation so what they loyal advocates for your brand. Customer retention rate It refers to the number of customer lost over a period of time Calculated as % Of lost customer /existing customer

Top Five Customer retention tactics 1. Regular communication with customized content and special offers 2. Customer service 3. Listen (and then talk) 4. Loyalty programs, appreciation awards and customer referral rewards. 5. Bring your customer together –social networks Customer Retention- is more powerful than customer satisfaction because of the following findings in customer focus related researches     Over 70% of an organization future revenue will come from existing customer A 3% increase in customer retentio0n has an equivalent impact upon profitability as a 12%reduction in operating costs. 90% of the unhappy customer will never purchase goods and services from you again. It costs 5 times as much to attract a new customer as it costs to keep an old one.

How Companies lose their customers      Dissatisfied customer -15% Influenced by friends-5% Trued away by competitors-9% Customer death -1% Poor customer service-70%

Customer Complaints
Meaning A customer complaints is any communication a customer has with your company in which „displeasure‟ is expressed. But every customer complaint is valid. Definition from ISO 10002:2004 “A complaint is an expression of dissatisfaction made to an organization , related to its product, or the complaints handling process itself, where a response or resolution is explicitly or implicitly expected”.Customer complaint is a measure of customer dissatisfaction Customer complaints can be received        Feedback from Survey questionnaire Complaint register Toll-free telephone number Service report cards Company website Company hotline number

Seven Steps of Resolving Customer Complaints   Do not waste time with your avoidance and make thinks worse Approach the customer as soon as you near they are unhappy 1.Listen Intently 2. Thank them 3. Apologize 4.Seek the best solution 5. Reach Agreement 6.Take quick Action 7.follow-up Employee Involvement Employee involvement is creating an environment in which people have an impact on decisions and actions that affect their jobs. Employee involvement is to involve people as much as possible in all aspect of work decision and planning. How to involve employee in decision making and continuous improvement activities is the strategic aspect of involvement and can include such methods as suggestion system.        Employee Involvement Model      Tell : the supervisor makes the decision and announces it to staff. Sell : supervisor attempts to gain commitment from staff by “selling” the positive aspects of the decision. Consult: The supervisor invites input into a decision while retaining authority to make the final decision herself. Join: supervisor invites employees to make the decision with the supervisor Delegate: The supervisor turns the decision over to another party. Suggestion system Manufacturing cells Work teams Continuous improvement meeting Kaizen (continuous improvement) Corrective action processes events and Periodic discussions with the supervisor

Employee Motivation According to behavioral theory of motivation BTOM Proactive Behaviour Proactive Behaviour : Some people would get motivated to work for recognition and likes work. Reactive Behaviour: Some people dislike for work. Punishment behavior is known as reactive behavior . Employee have to be grouped into individual human beings and this is known as “working partners” we must acknowledge the with individuals      Motivation Knowledge of motivation is necessary to understand the utilization of man power (employee) involvement to achieve the organization goals and objective .    “Capacity to work” and “willingness to work” are two different things. An a employee be physically mentally and technical fit to work but may not be interested or willing to work. When a employee is not willing to work then only these is need for motivation. Need Drives Characteristics Personalities Aspirations Reactive Behaviour

Theories of Motivation   Maslow‟s Hierarchy of Needs Herzberg‟s Two factor Theory

Maslow‟s Hierarchy of Needs  He belived that a persons motivational needs can be arranged in a hierarchical manner  Once a level of hierarch is reached by an a individual it no longer serves as motivation.  The next higher level of need has to be activated in order to motivate on a individual. HERZBERG‟S TWO FACTOR THEORY Determinants of job dissatisfaction (A) Hygiene factor (B)Motivator factor

(A) Hygiene factor Pay benefits Working conditions Quality of supervision Interpersonal relationship (B) Motivator Factors; Work itself Advancement Recongnition

Employee Empowerment Definition “Employee empowerment is defired as giving employee authority and responsibility to make decisions about their work without superriosy approval”.  Authority and responsibility are the two saids of a coin.  These decision are to be within well defined boundaries and should necessarily be directed towards achievement of organization goals and values.  Employee empowerment should not be confused with delegation and job enrichment  Delegation refers to distributing and entrusting work to other employees  Employee empowerment is an individual is held responsible for accomplishing a whole task.  The employee becomes the process owner Thus the individual is not only responsible but also accountable .‟‟‟  Job enrichment is aimed at expanding the content of an individuals job. In order to create on empowered environment 3 conditions are to be necessarly implemented

(1) everyone must understand the need for change People fear change People should accept change

(2) The system in the organization is to be changed for the new concept For motivation reward and reconginization For freedom to act (3) The organization must enable its employee

To provide them information and skill.

Team

Meaning : Team comprises a group of people linked in a comm. On purpose. Teams are especially appropriate for conducting tasks are high in complexity and have many interdependent subtasks.

Characteristics of Effective Team             Clear goal and objective Results-driven structure Competent team members Unified commitment A collaborative climate High standards that are understood by all Receive external support and encouragement Principled leadership Cohesiveness Balanced participation Open communication Account ability

Stages of team Growth A team just not start perform immediately ,there are stages in which a team grow and a team should be given time to work . A team can growth can be separated into four stage. Stage 1: Forming Stage 2: Storming Stage 3: Norming Stage 4: Performing



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CUSTOMER SATISFACTION Customers are important asset to the organization, satisfied customers will buy more, and buy more frequently, and pay their bill promptly. In a manufacturing and service organization, customer satisfaction is considered as a measure of quality.TQM implies an organizational drive with meeting or exceeding customer needs. Understanding the customer's needs and expectations is essential to winning new business. To attain this level, the organization should examine their quality system to respond to their ever changing customer's needs.

A simple definition of customer satisfaction is illustrated below Teboul model Characteristics of customer satisfaction and feeling, it is subjective by nature. 1. because of this subjective nature, it is difficult to measure. 2. the measurement of customer satisfaction is not precise. 3. the customer satisfaction should not be viewed in vacuum, i.e., it should be compared with the level of satisfaction they have with competitor's product are service.

Types of customerq1

s.

1. Internal customers - each of them receives a product or service and in exchange, providers a product or service. 2. external customers - one who uses the product or service, the one who purchase the product, or the who influences the sale of the product. One basic concept of TQM is focus on customers, both internal and external.

CUSTOMER RETENTION

Customer retention represents the activities that produces the necessary customer satisfaction which in turn creates the customer loyalty. customer retention moves customer satisfaction to the next level by determining what is truly important to the customers and making sure that the customer satisfaction system focuses valuable resources on things that are important to the customer. Customer retention is the connection between customer satisfaction and the bottom line. World-class companies that continuous improvement and customer satisfaction should go hand-inhand. Improved service to the customer is a costlier affair, so an organization must determine its return on the service investment. For this the important service elements that significantly improve revenues and market share should be determined. One survey indicates, it requires five times of effort to win a new customer than retaining a present customer. In this context customer retention is important for organizational success.

CUSTOM ER COM PLA I NTS Unlike the customer's feedback the customer complaints are reactive, and they are important in gaining data on customer perceptions. A dissatisfied customer can easily become a lost customer because of their frustrations. This customer dissatisfaction become a measure for organizational process improvement measures. Every single complaint should be accepted, analyzed, and acted upon to again win over customer's confidence. Since more than 50% of the dissatisfied customers will buy again if they are complaint has been heard and resolved. By adopting a positive approach the complaints can be seen as an opportunity to obtain information and provide a positive service to the customer. Handling the customer complaints

Quality is ³a predictable degree of uniformity and dependability, at low cost and suited to the

1 .investigate customer's experiences by actively receiving the customer feedback and then acting promptly. 2. develop procedures for complaint resolution that include empowering front-line employee. 3. analyze complaints, try to put them in a category for speedy response. 4. Work to identify process and material variations and then eliminate the root cause. 'more inspection' is not a corrective action. 5. After receiving the response, a senior manager should contact the customer and strive top resolve the concern 6. Establish customer satisfaction measures and constantly monitor them 7. Communicate complaint information, as well as the results of all inquiries and solutions, to all people in the organization. 8. provide a monthly complaint report to the quality council for their evaluation and if needed, the assignment of process improvement teams. 9. identify customer's expectations in advance rather than afterward through complaint analysis. Three key elements to a partnering relationship i. Long-term commitment ii. Trust iii. Shared vision a) Sole sourcing b) Multiple sourcing c) Single sourcing Ten conditions for the selection and evaluation of suppliers I. The supplier understands and appreciates the management philosophy of the organization. II. The supplier has a stable management system. III. The supplier maintains high technical standards and has the capability of dealing with future

technological innovations. IV. Thesuppliercansupplypreciselythoserawmaterialsandpartsrequiredbythepurchaser, andthosesuppliedmeetthequalityspecifications. V. The supplier has the capability to produce the amount of production needed or can attain that capability. Quality is ³a predictable degree of uniformity and dependability, at low cost and suited to the

VI. VII.

There is no danger of the supplier breaching corporate secrets. The price is right and the delivery dates can be met. In addition, the supplier is easily

accessible in terms of transportation and communication. VIII. IX. 9000. X. The supplier has a track record of customer satisfaction and organization credibility. Definition of Quality: The dictionary has many definitions of ³quality´. A short definition that has achieved acceptance is:
³

The supplier is si ncere i n implementing the contract provisions. The supplier has an effective quality system and improvement program such as ISO/QS

Quality is Customer Satisfaction´. ³Fitness for use´ is an alternative short definition. Here, customer

means anyone who is impacted by the product or process.

Quality is ³a predictable degree of uniformity and dependability, at low cost and suited to the

market´. Quality is a relative term, generally used with reference to the end-use of a product. Quality should be aimed at the needs of the consumer, present and future. According to ISO 8402, quality is ³the totality of features and characteristics of a product or service that bear on its ability to satisfy stated or implied needs´. Broadly quality is: a) Fitness for use b) Grade c) Degree of preference d) Degree of excellence e) Conformity to requirements Dimensions of Quality : The following are the components reveal the dimensions of quality.

Manufacturing Industries Service Industries Product Features Accuracy Performance Ti mel i ness Reliability Completeness Durability Friendliness and courtesy Ease of use Anticipating customer needs Serviceability Knowledge of server Esthetics Availability Reputation Reputation

EMPLOYEE INVOLVEMENT Japanese management emphasizes the need to consider employee as a val uble resources rather than treating them as a mere tools for production. Employee involvement is one approach to improve quality and productivity. It is not an replacement for management nor is it the final word in quality improvement, it aims at better meeting of organizational goals at all levels. Motivation Knowledge fo motivation helps us to understand the utilization fo employee involvement to achieve process improvement. THEORIES OF MOTIVATION He explained the motivation in terms of a hierarchy of needs and that there were five levels. These are survival, security, social, esteem, and self-actualization.

It is important to note that as employees move up the hierarchy, they will immediately revert back to the previous level if they feel threatened.

HERZBERG'S TWO FACTOR THEORY Herzberg extends the Maslow's theory by using empirical researcho in employee motivation. He found that people were motivated by the motivators ( intrinsic factors) like recognition, responsibility, achievement, advancement and the work itself. In addition he found that bad feelings were associated with preventable dissatisfies or hygiene factors (extrinsic factors) like low salary, minimal fringe benefits, poor working conditions, ill-defined organizational policies and mediocre(ordinary) supervision. He also explained that the presence of extrinsic factors ( for example good working condition) does not produce any motivation but their absence will create dissatisfaction among employees.

In a same manner the absence of intrinsic factors (for example advancement) does not produce any dissatisfaction but their presence will provide strong level of motivation. McGregor's Theory X and Theory Y How to motivate work force 1. Know thyself 2. Know your employees 3. Establish a positive attitude 4. Share the goals 5. Monitor progress 6. Develop interesting work 7. Communicate 8. Celebrate success EM POW ERM ENT The dictionary meaning of the term empowerment is to invest people with authority. Its purpose is to tap the enormous potential that lies within every worker.

An operational definition is as follows: Empowerment is an environment in which people have the ability, the conf idence, and the commitment to take the responsibility and ownership to improve the process and initiate the necessary steps to satisfy customer requirements within well defined boundaries in order to achieve organizational values and goals. Empowerment is nothing unusual, people generally want to be more in charge of their own jobs and carriers. after all, they do that successfully in their personal lives every day. Most people appreciate and value the trust and responsibility. This empowerment helps greatly in eliminating resistance to changes.

Empowerment is different from delegation or job enrichment, which means distributing or entrusting work to others. In empowerment employee is held responsible for accomplishing a whole task. i.e., employee becomes process owner, thus not only responsible but also accountable. Three conditions are necessary for empowering employees 1. Everyone must understand the need for change 2. The system needs to change to the new paradigm( model/standard) 3. The organization must enable its employees. TEAMS Teams are very effective in solving all quality and productivity problems.

Team is defined as a group of people working together to achieve common objectives or goals. Teamwork is the cumulative actions of the team during which each member of the team subordinates his interests and opinions to fulfill the objectives or goals of the group. Many heads are better than one, especially in meeting ever-changing customer needs. Each member of the team have special ability that can be used for the problem. Many processes are so complex that one person cannot able solve completely. Based on the synergic effect, whole is greater than sum of its parts. Team work is better than sum of its member contribution. Team builds a rapport with each other that allows everyone to do a better job. Teams provide the vehicle for improved communication. Types of teams  Process improvement teams  cross-functional teams  natural work teams  self-directed/ self managed teams

CONTINUOUS PROCESS Characteristics of successful teams Sponsor Team charter Team competition training ground rules clear objectives accountability resources trust well-defined decision procedures effective problem solving open communication appropriate leadership balanced participation cohesiveness. educe errors eet or exceed expectations of downstream customers ake the process safer ake the process more satisfying to the person doing it. Phases of a Continuous Process Improvement Cycle are a) Identify the opportunity b) Analyze the process c) Develop the optimal solutions d) Implement IMPROVEMENT The basic ways for a continuous process improvement are educe resources

e) Study the results f) Standardize the solution g) Plan for the future JURAN TRILOGY Three components of the Juran Trilogy are i. Planning ii. Control iii. Improvement PDSA CYCLE The steps in the PDSA cycle are T h eb a s i cP l an D o S t ud y A c ti sane fe c t i v ei m p r o v e m e n tt e c h n iq u e .1st. Plan carefully what is to be done 2nd. Carry out the plan 3rd. Study the results 4th. Act on the results by identifying what worked as planned and what didn’t. The Deming’s PDSA cycle is a well-known model for continual process improvement. It teaches organizations to plan an action, do it, study to see how it conforms to the plan and act on what has been learned. The terms are defined below. Step 1: Plan Recognize an opportunity, and plan the change. Step 2: Do Implement the change. Step 3: Study Review the implementation, analyze the results and identify learnings. Step 4: Act Take action based on what you learned in the step 3. If the change was successful, incorporate the learni ngs from the test into wider changes. If not, go through the cycle again. The PDSA cycle for sustainable development of TQM shown in Fig. 1 is made up of four steps. Step 1: Plan for TQM

Quality having become one of the twentieth century’s most important management ideas, has exorcised – driven out – the traditional business as well as graduate management school notion that a company’s success means making products and offering services quicker and cheaper, selling them hard, and providing a product service net to try to catch those that do not work well (Feigenbaum, 1999). TQM has replaced this notion with the business principle that making products better is the best way to make them quicker and cheaper and that what you do to make quality better anywhere in an organization makes it better everywhere in the organization. The evolution of TQM into and a full blown

management took shape through the works of Crosby (1979), Deming (1986), Feigenbaum (1983) and Juran (1986). The primary focus of TQM philosophy is on the hands and minds that employ the tools and techniques rather than the tools and techniques themselves (Antony et al., 2002). ISO 9000: 2000 versions adopt TQM philosophy with stronger focus on customer satisfaction and an effective process-oriented approach emphasizing on continual performance improvement. Clearly the new revised standard is a step forward towards TQM, customer satisfaction and does not just achieve product quality assurance (Magd et al., 2003). Those companies wishing to remain competitive and improve their quality systems are recommended the use of ISO 9000 as a foundation for a much broader system of TQM. This is based on the fact that ISO 9000 is an important part of TQM, and the implementation of both the approaches will lead to organizational success and competitive advantage. Rao et al. (1997) conducted a four nation study (US, China, India and Mexico) and concluded that ISO 9000 registered companies have better quality management practices and enjoy better quality results than companies that are planning to get registered and are not interested in registration. The adoption of TQM in an organization has to start from a strategy for implementation involving the planning and preparation of document detailing the way forward (Yusof & Aspinwall 2000a). The preparation of such a document may constitute: 1. Creation of a co-ordination body; 2. Development of a vision, mission and policy statements; 3. Education for the top management and coordinating body members on total quality principles and philosophy; 4. Selection and trial run of the first improvement project; Appraising the company’s current level of quality management Implementation Step 2: Implement TQM Taylor and Wright (2003) conducted a longitudinal study of TQM implementation for a cohort of 109 firms in UK over a 5-year period and found that 42 firms, predominantly small in size, had discontinued with TQM, while the remaining 67 firms reported varying degree of success. The study concluded that the size of the firm, the nature of the customer base and the holding of ISO 9000 series certification has

had no significant effect on TQM outcomes for this cohort. The research has highlighted some necessary antecedents for TQM success. In particular, managers need to understand the nature and purpose of TQM, its relationship to ISO 9000, and the potential benefits that can accrue from its implementation. Antony et al. (2002) conducted an empirical study in Hong Kong and developed an instrument by using the perceptions and experiences of TQM based companies. The authors concluded that the training and education is the most critical success factor for the successful implementation of TQM in Hong Kong organizations. Step 3: Study and measure the level of TQM implementation

Regardless of which TQM model is adopted, the CSFs must be operationalized for effective TQM implementation. Manifestation of CSFs results in generation of Quality-related Action Programs (QA Ps). The measurement of TQM involves selecting a list of QAPs to measure each CSF, providing a measurement scale for the QA Ps, and then testing the instrument for reliability and validity. For each CSF the actual level of TQM practice is represented by the average of the QA Ps ratings for that CSF. A vector of the averages for all the CSFs represents the level of TQM implementation for the organization as a whole (Saraph et al., 1989). Saraph et al. (1989) study was replicated by Badri et al. (1995) in United Arab Emirates and Quazi et al. (1998) in Singapore. The TQM implementation level in Singapore organizations was at a medium level and in the organizations in the United Arab Emirates was found to below.

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