Total quality Management

Definition of quality "Quality itself has been defined as fundamentally relational: 'Quality is the ongoing process of building and sustaining relationships by assessing, anticipating, and fulfilling stated and implied needs.' In manufacturing, a measure of excellence or a state of being free from defects, deficiencies, and significant variations, brought about by the strict and consistent adherence to measurable and verifiable standards to achieve uniformity of output that satisfies specific customer or user requirements. ISO 8402-1986 standard defines quality as "the totality of features and characteristics of a product or service that bears its ability to satisfy stated or implied needs." Meaning Quality of design Quality of conformance Quality of performance Quality of design of the product is the tightness of the specification for manufacturing the product Quality of conformance refers to the ability to maintain the specified quality design Or it is concerned with how well the manufactured product conforms to the quality of design Quality of performance how well a manufactured product gives its performance is termed as quality of performance .

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Dimensions of quality 1. Performance 2. Features 3. Conformance 4. Reliability 5. Durability 6. Service 7. Response 8. Aesthetics 9. Durability 10.Service 11.Response
Performance : Its a primary product characteristics It is the extent to which a manufactured product is able to function Features It is the secondary product characteristics Conformance It is the ability to maintain the specific quality of design or industry standards or workmanship Reliability Reliability is the probability of a product to perform adequately for the period intended under the given operation condition Durability Its hard wearing Life of the product

Response The dimension of the quality is concerned with the human to human interface Asthetics It talks about the exterior finish

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COST OF QUALITY Quality affects all aspects of the organization and has dramatic cost implications. The most obvious consequence occurs when poor quality creates dissatisfied customers and eventually leads to loss of business. However, quality has many other costs, which can be divided into two categories. The first category consists of costs necessary for achieving high quality, which are called quality control costs. These are of two types: prevention costs and appraisal costs. The second category consists of the cost consequences of poor quality, which are called quality failure costs. These include external failure costs and internal failure costs. Prevention costs 1. 2. 3. 4. 5. Quality planning and engineering New product review Product /process review Training Quality data acquisition and analysis

Appraisal cost 1. 2. 3. 4. Inspection and testing of incoming material Product inspection and testing Material and services consumed Maintaining accuracy of test equipment

Internal failure cost 1. 2. 3. 4. 5. 6. Scrap Rework Retest Failure analysis Down time Down grading

External failure costs 1. 2. 3. 4. Complaint adjustment Returned product /material Warranty charges Liability costs

Quality

= Performance /Expectation

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Introduction To Total Quality Manangement Basics concepts of TQM

Meaning of TQM The elements of TQM as the name suggested are : Total Quality Management Quality Products and services that totally satisfy the customers needs and expectations in every respect on a continuous basis To satisfy consumer needs .In fact to delight customers A customer may be internal or external External customers are those who buy out products /services . Internal customers are individuals /departments who use our output and we become their supplier

Total -Complete -All Areas And Functions All activates All employees All time always

Management Quality does not happen on its own It requires to be planned and managed It is everybodys responsibility throughout the organization Therefore needs a systematic approach

Definition of TQM

Total quality Management

Total quality management transcends the product quality approach, involves everyone in the organization, and encompasses its every function: administration, communications, distribution, manufacturing, marketing, planning, training,

CONCEPT OF TQM 1. Commitment Commitment from the Top Management TQM concept are to be promoted at all levels and activities of the organization of the organization for success of TQM 2. Customer Satisfaction To understand and satisfy the needs of the customers 3. Participation by all The strength and abilities of each person should be seen /recognized as a link in a chain 4. Process measurements It should be applied to all organizational activities 5. Continuous improvement Improvements to people and process performance should be continuously sought and monitored 6. Problem identification Problems might occur in the future and existing problems .on a continuous basics 7. Personal development For individuals at all levels ,there should be continuous appraisal ,training and development

Quality council A quality council is formed to build quality into culture of an organization The quality council will provide the overall directions The members of the quality council will be -chief executive officer - senior manager of all departments (like production ,finance ) -a coordinator or a consultant (who will report to the CEO) The duties of the Coordinator are: -build trust between management and employees - sharing of the quality council expectations - communicating to the council expectations -Making the teams understand their responsibilities and empowering them -Assisting team leaders ,facilitating the sharing of experience and organizing /conducting meeting of team leader.

Quality statements Vision statement

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Mission statement Quality policy statement

Vision statement 1. Means futuristic view

2. Vision statement is an open declaration made by an organization stating what it wants to be and look like after a specific period of time in future 3. -it should be noted that the vision statement is to be realistic and achievable 4. The vision statement should be widely (and deeply )shared amongst all in an organization 5. Vision statement are usually short ,that is it is put in a few sentences

Mission statement 1. It refers to what an organization wishes to do and become within and beyond its mandate 2. Mandate is a brief description of what an organization must do and is permitted to do so 3. Mission statements provides answer to the following a) Who the organization is b) The customer of the organization c) What the organization does d) How the organization does it 4. A mission statement consists of four basic elements namely

a) b) c) d) Quality policy statement

Purpose Stakeholders Goals Core values

It is the guide for all working in an organization with respect to how they should provide products and services to the customers

Total quality Management

TQM Tools

Pareto Principle Scatter Plots Control Charts Flow Charts Cause and Effect , Fishbone, Ishikawa Diagram Histogram or Bar Graph Check Lists Check Sheets

Pareto Principle

The Pareto principle suggests that most effects come from relatively few causes. In quantitative terms: 80% of the problems come from 20% of the causes (machines, raw materials, operators etc.); 80% of the wealth is owned by 20% of the people etc. Therefore effort aimed at the right 20% can solve 80% of the problems. Double (back to back) Pareto charts can be used to compare 'before and after' situations. General use, to decide where to apply initial effort for maximum effect.

Scatter Plots

A scatter plot is effectively a line graph with no line - i.e. the point intersections between the two data sets are plotted but no attempt is made to physically draw a line. The Y axis is
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conventionally used for the characteristic whose behaviour we would like to predict. Use, to define the area of relationship between two variables. Warning: There may appear to be a relationship on the plot when in reality there is none, or both variables actually relate independently to a third variable.

TQM Tools
Here follows a brief description of the basic set of Total Quality Management tools. They are:

Pareto Principle Scatter Plots Control Charts Flow Charts Cause and Effect , Fishbone, Ishikawa Diagram Histogram or Bar Graph Check Lists Check Sheets

Pareto Principle

The Pareto principle suggests that most effects come from relatively few causes. In quantitative terms: 80% of the problems come from 20% of the causes (machines, raw materials, operators etc.); 80% of the wealth is owned by 20% of the people etc. Therefore effort aimed at the right 20% can solve 80% of the problems. Double (back to back) Pareto charts can be used to compare 'before and after' situations. General use, to decide where to apply initial effort for maximum effect.

Scatter Plots

Total quality Management

A scatter plot is effectively a line graph with no line - i.e. the point intersections between the two data sets are plotted but no attempt is made to physically draw a line. The Y axis is conventionally used for the characteristic whose behaviour we would like to predict. Use, to define the area of relationship between two variables. Warning: There may appear to be a relationship on the plot when in reality there is none, or both variables actually relate independently to a third variable. Return to TQM Tools index

Control Charts

Total quality Management

Control charts are a method of Statistical Process Control, SPC. (Control system for production processes). They enable the control of distribution of variation rather than attempting to control each individual variation. Upper and lower control and tolerance limits are calculated for a process and sampled measures are regularly plotted about a central line between the two sets of limits. The plotted line corresponds to the stability/trend of the process. Action can be taken based on trend rather than on individual variation. This prevents over-correction/compensation for random variation, which would lead to many reject

Flow Charts

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Pictures, symbols or text coupled with lines, arrows on lines show direction of flow. Enables modelling of processes; problems/opportunities and decision points etc. Develops a common understanding of a process by those involved. No particular standardisation of symbology, so communication to a different audience may require considerable time and explanation.

Cause and Effect , Fishbone, Ishikawa Diagram

The cause-and-effect diagram is a method for analysing process dispersion. The diagram's purpose is to relate causes and effects. Three basic types: Dispersion analysis, Process classification and cause enumeration. Effect = problem to be resolved, opportunity to be grasped, result to be achieved. Excellent for capturing team brainstorming output and for filling in from the 'wide picture'. Helps organise and relate factors, providing a sequential view. Deals with time direction but not quantity. Can become very complex. Can be difficult to identify or demonstrate interrelationships.

Histogram or Bar Graph

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A Histogram is a graphic summary of variation in a set of data. It enables us to see patterns that are difficult to see in a simple table of numbers. Can be analysed to draw conclusions about the data set. A histogram is a graph in which the continuous variable is clustered into categories and the value of each cluster is plotted to give a series of bars as above. The above example reveals the skewed distribution of a set of product measurements that remain nevertheless within specified limits. Without using some form of graphic this kind of problem can be difficult to analyse, recognise or identify.

Check Sheets
A Check Sheet is a data recording form that has been designed to readily interpret results from the form itself. It needs to be designed for the specific data it is to gather. Used for the collection of quantitative or qualitative repetitive data. Adaptable to different data gathering situations. Minimal interpretation of results required. Easy and quick to use. No control for various forms of bias - exclusion, interaction, perception, operational, non-response, estimation.

Check Lists
A Checklist contains items that are important or relevant to a specific issue or situation. Checklists are used under operational conditions to ensure that all important steps or actions have been taken. Their primary purpose is for guiding operations, not for collecting data. Generally used to check that all aspects of a situation have been taken into account before action or decision making. Simple, effective.

7 Important Principles of Total Quality Management

Total Quality Management (TQM) is an approach that organizations use to improve their internal processes and increase customer satisfaction. When it is properly implemented, this style of management can lead to decreased costs related to corrective or preventative maintenance, better overall performance, and an increased number of happy and loyal customers.

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However, TQM is not something that happens overnight. While there are a number of software solutions that will help organizations quickly start to implement a quality management system, there are some underlying philosophies that the company must integrate throughout every department of the company and at every level of management. Whatever other resources you use, you should adopt these seven important principles of Total Quality Management as a foundation for all your activities.
1. Quality can and must be managed

Many companies have wallowed in a repetitive cycle of chaos and customer complaints. They believe that their operations are simply too large to effectively manage the level of quality. The first step in the TQM process, then, is to realize there is a problem and that it can be controlled.
2. Processes, not people, are the problem

If your process is causing problems, it wont matter how many times you hire new employees or how many training sessions you put them through. Correct the process and then train your people on these new procedures.
3. Dont treat symptoms, look for the cure

If you just patch over the underlying problems in the process, you will never be able to fully reach your potential. If, for example, your shipping department is falling behind, you may find that it is because of holdups in manufacturing. Go for the source to correct the problem.
4. Every employee is responsible for quality

Everyone in the company, from the workers on the line to the upper management, must realize that they have an important part to play in ensuring high levels of quality in their products and services. Everyone has a customer to delight, and they must all step up and take responsibility for them.
5. Quality must be measurable

A quality management system is only effective when you can quantify the results. You need to see how the process is implemented and if it is having the desired effect. This will help you set your goals for the future and ensure that every department is working toward the same result.
6. Quality improvements must be continuous

Total Quality Management is not something that can be done once and then forgotten. Its not a management phase that will end after a problem has been corrected. Real improvements must occur frequently and continually in order to increase customer satisfaction and loyalty.

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7. Quality is a long-term investment

Quality management is not a quick fix. You can purchase QMS software that will help you get things started, but you should understand that real results wont occur immediately. TQM is a long-term investment, and it is designed to help you find long-term success. Before you start looking for any kind of quality management software, it is important to make sure you are capable of implementing these fundamental principles throughout the company. This kind of management style can be a huge culture change in some companies, and sometimes the shift can come with some growing pains, but if you build on a foundation of quality principles, you will be equipped to make this change and start working toward real long-term success. Principles Of TQM 1- Be Customer focused: Whatever you do for quality improvement, remember that ONLY customers determine the level of quality. Whatever you do to foster quality improvement, training employees, integrating quality into processes management, ONLY customers determine whether your efforts were worthwhile. 2-Insure Total Employee Involvement: You must remove fear from work place, then empower employee... you provide the proper environment.

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3- Process Centered: Fundamental part of TQM is to focus on process thinking. 4- Integrated system: All employee must know the business mission and vision. An integrated business system may be modeled by MBNQA or ISO 9000 5- Strategic and systematic approach: Strategic plan must integrate quality as core component. 6- Continual Improvement: Using analytical, quality tools, and creative thinking to become more efficient and effective. 7- Fact Based Decision Making: Decision making must be ONLY on data, not personal or situational thinking. 8- Communication: Communication strategy, method and timeliness must be well defined.

ustomer Satisfaction
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Customer Satisfaction: This inverted pyramid is a good way to depict the importance of customers. She is at the top of the pyramid and the CEO is at the bottom. This shows the relative importance of people at the bottom of the hierarchy. A company never makes a product for its top management people, rather it is meant for the customer. As front line employees are in direct contact with people so they are in a better position to understand a customers needs and problems. Every effort should be taken by the organization to seek opinion from front line employees. Even in case of empowerment it is front line employee who should be having more empowerment which will enable him to solve customer problem on the spot.

Customer Perception of Quality

If a particular feature suits a particular customer need then that feature is going to win a customers heart. This diagram shows how the red area is the common juxtaposition of a companys offerings and customers needs. Any product or service falling in this zone will be a surefire recipe for organizations success. Let us take example of Maggi noodles. When it was launched in India in early eighties the taste was not accepted by the Indian taste-bud. Nestle researched properly and came with Masala Tastemaker, which was lapped up by the customer. Now after two decades Maggi can be found in almost every household in India.

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Internal Customers

Internal customers are as important as external customers. The above picture shows how important a cog is internal customer in the grand design of things. Internal customer helps change an input to a product which will be used by the external customer.

Basic Questions Asked from Internal Customers: 1. What do you need from me: Internal customers should be constantly asked what kind of resources they need for functioning properly and for giving the desired result. There is a hypothetical example of a dot com company. The designer was comfortable working with Adobe photoshop, but the top management insisted that he should do with corel draw. As his skills were tasted properly when he was hired, so he was not enjoying and was always asking for the required software. He stayed in the organization for six months without contributing anything. Ultimately out of disgust he left the organization. The top management should have hired people with skill in using Corel in the first place, but if they had hired that guy then he should have been provided with the tool he was comfortable with. This whole episode resulted in huge loss of resources and manhour for the organization and low self-esteem for the concerned designer. At the end of the day there was no output at all. 2. What do you do with my output: Once the management agrees to provide resources then it should ask about how the worker is going to utilize that resource and what would be the result. 3. Are there any gaps between what you need and what you get: Sometimes a worker may not say what he needs because obvious reasons. It becomes top managements duty to always analyse if there is some gap and should try to fill that gap.

Customer Perception of Quality

American Society for Quality Survey: Factors Influencing Customer Perception:
Performance Features Service 17

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Warranty Price Reputation

Customer Feedback:
Should be continually solicited and monitored: Customer Feedback should be continuously solicited as customer preferences keep on changing. Let us remember those days when the original red Lifebuoy was selling like hot cake. Now peoples preferences have changed. The organization has come up with many variations of Lifebuoy. The basic USP remains the same, health and hygiene but concepts of, beauty and healthy skin is thrown in to satisfy the changed customer needs. Purpose of Feedback: Discover Customer Dissatisfaction: The feedback helps to know how satisfied or dissatisfied the customer is. A customer who does not complain and switches to another brand is more dangerous than a customer who complains. Customer dissatisfaction can be a big eye opener and help discover what more needs to be done for a product or service. Discover Relative Priorities of Quality: Certain parameters of quality are more important than others. Whenever planning for a quality goal the organization should prioritize its goals. Compare Performance With Competition: Watching competitor activity is a good learning tool for any organization. This is a way of benchmarking us vis--vis others. Identify Customers Needs: There is a saying that salesman who discovers a customer need before everyone else is more likely to get the sales. The same logic holds for organizations as well. You can always reap the benefits of first mover advantage. Let us take example of Frooti. Probably Frooti is the first brand to identify the Indian taste and to make an effort to cater to that taste. No matter how many drinks with mango flavour has come Frooti remains the numero uno in its segment. Determine Opportunities for Improvement: Customer feedback also helps an organization in determining about opportunities for improvement.

Tools of Customer Feedback:

Comment Card: This can have simple open questions so that customer can answer it quickly. Customer Questionnaire: Design of questionnaire is of utmost importance to get timely and relevant information. Focus Groups: Focus groups are mostly used in B2B set up. Especially in pharmaceuticals industry, key opinion makers are made part of the trial. Their opinion holds sway over doctors of hinterland. It helps them get a word to mouth publicity as well.
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Toll Free Telephone Numbers Customer Visits Report Cards Social Networking Sites, e.g. quikr.com: There are certain sites where visitors can share good or bad experience with a product or service. These sites give real insight into customers minds. On other social networking sites, like Orkut and Facebook, people share their experiences and sometimes, unknowingly may give opinion about a company. Now certain companies are having devoted teams to analyse these data. Employee Feedback: Mass Customization: Mass customization is another good tool to know about changed preferences. Levis gives a facility on its website which enables a potential customer to choose certain fabric, colour and design. Once the customer places an order Levis gets the jeans stitched and delivered at customers doorstep. How to Use Customer Feedback:
Thank for the feedback. Listen the complaint Solve the complaint Retain by solving the problem Regain lost customers

Service Quality
Organization Level Identify Each Market Segment: Each market segment has its own dynamics, so customer needs tend to vary as per a market segment. For example in a diverse country like India, customers of north India will have different needs compared to those in south India. Write Down The Requirements: A very good example of chalking out requirements of a particular market is shown during recent launch of a dark chocolate brand by Cadburys in India. India is hot country so selling dark chocolates has its own issue of logistics management. Cadburys is supplying these chocolates in insulated boxes to key retailers so that customer can get the right quality of chocolate. Communicate The Requirements: Communicating your quality requirements is a way of convincing the front line people so that they will implement everything as per the original plan. Around 2000 the pharmaceuticals giant Pfizer launched a hepatitis-B vaccine. The product needed to be supplied through cold chain upto the vaccination point. All personnel in sales force were properly educated on this issue to ensure proper implementation of cold
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chain. This ensured that the product reached the end user at right temperature to provide desired efficacy. Organize Processes: Every process should be well organized to ensure optimum output and resultant benefit to the customer. Customer Care
Meet Expectations Get the customers point of view Deliver what is promised Make the Customer feel valued Respond to all complaints Over Respond to the customer Provide a clean and comfortable customer reception area

Communication
Trade off between time and personal attention Minimize the number of contact points Provide pleasant, knowledgeable and enthusiastic employees Write documents in customer friendly language

Front Line People

Hire people who like people Challenge them to develop better methods Give them authority to solve problems Serve them as internal customers Be sure they are adequately trained Recognize and Reward Performance

Leadership
Lead by example Listen to the front line people 20

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Strive for continuous process improvement

Leadership
Definition: Leadership has been described as the process of social influence in which one person can enlist the aid and support of others in the accomplishment of a common task.[Chemers MM 2002] Alan Keith: "Leadership is ultimately about creating a way for people to contribute to making something extraordinary happen." Ken "SKC" Ogbonnia: "effective leadership is the ability to successfully integrate and maximize available resources within the internal and external environment for the attainment of organizational or societal goals." Ann Marie E. McSwain: leadership is about capacity: the capacity of leaders to listen and observe, to use their expertise as a starting point to encourage dialogue between all levels of decision-making, to establish processes and transparency in decision-making, to articulate their own values and visions clearly but not impose them. Leadership is about setting and not just reacting to agendas, identifying problems, and initiating change that makes for substantial improvement rather than managing change. These three definitions talk about certain common things. They are resources, utilization of resources, managing constraints and getting extraordinary results. These definitions also talk about motivating people to work in unison to create results.

Concepts of Leadership
Stephen R Covey: The 7 Habits of Highly Successful People 1. Be Proactive: Proactive people think beforehand and are ready to face a situation. Reactive people react as per the situation and react on whims and emotions. A proactive person can plan beforehand for an eventuality. If you are well prepared then you can face a situation or solve a problem more efficiently. 2. Begin with the end in Mind: If you dont know where to go then you will reach nowhere goes an old saying. Start a task with set goals. Goals are important as they tell you where to go. They help in focusing your approach as well. Remember the famous incident from Mahabharata where Guru Dronacharya asks his disciple about what they could see during target practice. Arjuna gives the most perfect answer as he was focusing on the target. Because of his focused approach Arjuna became one of the best archers of his time. 3. Put First Things First: Because of multitude of tasks and assignments one needs to prioritize. This helps in giving more attention to more important things at hand.

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4. Think win-win: Think about mutual benefits rather than your own benefit alone. Everybody wants to have an upper hand in life and in business dealings. But this is practically not possible. So best way is to find is the middle of the road. 5. Seek first to understand, then to be understood: First give other people ample time to express themselves. This will help on many fronts. The other person gets enough opportunity to say what he wants to say. You get an opportunity to understand others perspective. You get enough time to strategize accordingly. 6. Synergy: The best example of team work can be learnt from a pleasant orchestra or jugalbandi in Indian classical music. Especially in Indian classical music you will observe how maestros bury their egos and come out with astounding performances. 7. Sharpen the Saw: Skill building or practice is very important. Nobody is perfect and perfection is a thing which can never be achieved in ones lifetime. Moreover, it always pays to practice as much as you can.
Role of Senior Management

1. Management by wandering around: Recently there was an article in The Times of India about how Mr. Kishore Biyani, the founder of Future group roams around in the market to interact with customers to learn exact consumer needs. Although he has every resource at his command, he can hire the best personnel, or the best marketing research agencies, but still he comes out from the comfort of his air-conditioned office to feel the pulse of the market. Even when the senior management has to deal with internal customers, it should go out and meet people. This will help build the personal relationship which in turn will help achieve better productivity. 2. Delegate authority and responsibility: No matter how talented someone is, one person cannot do all the work which is needed. Additionally, by delegating authority you give a sense of importance to people involved. Authority and responsibility help in fulfilling the social recognition and self-actualization needs of people. At the end you get a more motivated team of your colleagues. 3. Train the employee: Training is important from two perspectives. First issue is of imparting the basic skill to carry out a task. Another point is training to cope with change. Let us take example of the Sales force. The person involved in making sales pitch should be well versed with features and benefits of the concerned product. Apart from that he should be having sufficient peoples skills so that he can make pleased customers. 4. Celebrate the success: Success should always be celebrated, no matter how big or small it is. Celebration is a way of recognizing the efforts and outcomes of people. Most of our festivals are a way to celebrate some achievements. 5. Be visible and accessible 6. Facilitate two way communication 7. Manage change
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Quality Council
Quality council should be made up of the CEO and heads of the relevant functional departments. Duties of Quality Council
1. Develop core values, vision statement, mission statement and quality policy statement. 2. Develop long term and short term quality plan and objective 3. Create total education and training plan 4. Determine and monitor the cost of poor quality 5. Determine performance measures 6. Identify processes that improve quality 7. Establish cross-functional projects and work groups and monitor their progress 8. Chalk out new reward and recognition system

Meeting Agenda:
Progress Report on team: The progress report gives a handy check to assess where the team is compared to where it wanted to reach in terms of performance. Customer satisfaction report: Whatever a company does, the ultimate aim should be to satisfy customers. So, customer satisfaction report tells if a particular quality programme is really useless or just a window dressing. Progress on meeting goals: Gap analysis helps to chalk out further plans to fill the gap in target Vs performance. New Project teams: The meeting can also be about announcing some new projects and who will be in the team to handle that project. Recognition Celebration: Celebration has been an integral part of human civilization since time immemorial. They have morale boosting effect on everyone. Benchmarking report: Benchmarking is a good way to learn from the best practices. If some members are doing exceptionally good then others should try to emulate their ways of working towards a particular assignment. Quality Statements It should be prepared by senior management personnel. Quality statement works as guideline to carry out the quality objective set by the mission and vision statements.

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Strategic Planning
1. Customer needs: Before starting any long term plan to attain an objective assessment of customer needs is very important. Every activity of an organization should be directed towards satisfying the customer needs. 2. Customer positioning: No two individual is same, so every type of customer should be treated as per his/her profile. You cannot sell a premium product to a price conscious customer. 3. Predict the future: If the top management can foresee the future then it helps enable the organization to prepare for future changes. Let us take example of SONY. With rapid change in technology SONY has changed its product portfolio, so it is now MP3 player instead of Walkman which we get from SONY. 4. Gap analysis: Gap analysis is about the difference between what needs to be done and what are we currently doing. It can give a clue about whether the organization should increase or decrease capacity for a particular product. 5. Closing the gap: If there are gaps then long term plans should be about how to fill that gap. 6. Alignment (with vision and mission): Whatever quality goals an organization is chalking out it should not lose focus from the long term vision and mission of the organization. 7. Implementation: Once every plan about goals is ready then the next step should be to plan about the methodologies of implementation.

Deming
1. Create and publish the aims and purposes of the organization: Once all the goals have been finalized then it should be properly documented and published so that it can be communicated to people down the line. Communication is the only means to educate people about a new paradigm. 2. Learn the new philosophy: Learning the new philosophy is important as it is required for paradigm change. Most of the people show resistance to change. So, peoples education is important to make them amenable towards change. 3. Understand the purpose of inspection: Once frontline people are properly educated about the purpose of inspection they will accept it as an integral part. Otherwise it would be viewed as another method to cross check them and put a vigil on them. 4. Stop awarding business based on price alone: Supplier should be selected on other criteria apart from price. 5. Improve constantly and forever the system: Any system takes time to evolve and can never be a perfect system. So, systems should be continuously improved to gain optimum efficiency.
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6. Institute training: Training is an important tool to impart new skills and to augment older skills. Whenever an organization is trying to chart a new quality goal then everybody should be properly trained to have good understanding of the new way of doing things. 7. Teach and institute leadership: Every employee should be groomed as a leader. Leadership skills help people to solve problems on their own. Moreover, by instilling a sense of leadership the organization can instill a sense of pride towards work among individuals. 8. Drive out fear, Create Trust and Create a climate for innovation: People should never get an impression that the new programme is going to be a tool to keep vigil on them. They should be taken into confidence by showing trust in them. Its a two way relationship and if you trust your people then they will trust you in turn. 9. Optimize the efforts of teams, Groups and Staff areas: The whole is always greater than the some of its parts. So, teams output should be always be optimized to have better results. 10. Eliminate exhortations for the work force: Pressure at the workplace can create havoc for performance. So, no kind of exhortation should be used to get the desired results. The boss should work like a co-worker. 11. Eliminate numerical quota and eliminate management by objective. 12. Remove barriers that rob people of pride of workmanship 13. Encourage education and self improvement for everyone 14. Take action to accomplish the transformation

Quality Planning
1. Set quality objectives and targets 2. Take into account customers wants 3. Plan about marketability of the products. 4. Carry out pre-production process capability or quality deliverability studies. 5. Establish the relative importance of the quality characteristics and specifications. 6. Communicate to the production line people and vendors supplying the raw materials. 7. Establish statistical control techniques, charts and sampling plans. 8. Establish training programmes.

Barriers to TQM Implementation

1. Lack of Management Commitment

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2. Inability to Change Culture 3. Improper Planning 4. Lack of Continuous Training 5. Incompatible Organizational Structure 6. Isolated Individuals and departments 7. Ineffective Measurement Techniques 8. Lack of Access to Data 9. Inadequate Attention to External & Internal Customers 10. Inadequate Empowerment and Teamwork 11. Failure to Continually Improve

What is benchmarking? Benchmarking is a way to go backstage and watch another companys performance from the wings, where all stage tricks and hurried realignments are visible. In Joseph Jurans 1964 book Managerial Breakthrough, he asked the question: What is that organizations do that gets result so much better than ours? The answer to this question opens door to benchmarking, an approach that is accelerating among many firms that have adopted the total quality management (TQM) philosophy.

The Essence of Benchmarking The essence of benchmarking is the continuous process of comparing a companys strategy, products, processes with those of the world leaders and best-in-class organizations.

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The purpose is to learn how the achieved excellence, and then setting out to match and even surpass it.The justification lies partly in the question: Why reinvent the wheel if I can learn from someone who has already done it? However, Benchmarking is not a panacea that can replace all other quality efforts or management processes. The Evolution of Benchmarking The method may have evolved in the early 1950s, when W. Edward Deming taught the Japanese the idea of quality control. Other American management innovations followed. . The best example is Toyota Motor Corporations following the footsteps of Ford Motor Corporation albeit with the adaptation of the Fords Just-in-case system into Toyotas Just-intime system. The term benchmarking, however, was not coined by that time. The term benchmarking emerged when the idea took ground in US during 1980s when Xerox, Ford and Motorola became the pioneers of benchmarking in USA. Robert Camp, the logistics engineer who initiated Xeroxs benchmarking program and who is generally regarded as the guru of the benchmarking movement, defines it: Benchmarking is the search for industry best practices that lead to superior performance Definition of Customer There are two distinct types of customers i.e. external and internal. Internal customers are within the company-the colleagues working together for delivering a service or product for the external customer. We will, however, remain restricted to the external customers here. An external customer may be an individual or an enterprise that hires or purchases the product(s) or service(s) from another person or business in exchange of money. One of the most important factors for the success of an enterprise is its customers. Without them, a business cannot exist. But to capture customers, a business must try to find out what people want, how much and how often they will buy and how their post-purchase satisfaction will be ensured. What is the relation of a process vs its customer? The process is defined as a set of interconnected activities that result in a product or a service to be offered to a customer. Thus, their relation is of critical importance. The result of one activity (the process) directly affects the other entity (the customer). For example, all the customer complaints are analogous to process variation. If variation that is non-conformance to the quality standards occurs, it will ultimately affect the quality of the end product or service. Therefore it important to keep a strong check on this aspect. Define customer satisfaction? Customer satisfaction is not an objective statistics but more of a feeling or attitude. If a customer is happy with a product or a service it has hired or purchase they will pay their bills
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promptly, which greatly improves cash flow-the lifeblood of any organization. Customers that are satisfied will increase in number, buy more, and buy more frequently. How would you define quality with respect to customer satisfaction process? Many companies approach customer satisfaction in a narrow way by confining quality considerations to the product alone. Whereas, service connected with the product are frequently over looked, such as packaging, timely and accurate shipping and ability to meet deadline matters. Customer define quality in terms of their overall experience with the company

Service quality Is the customers perception of how well a service meets or exceeds their expectations [Customer satisfaction]= [quality of the product] + [service quality]

Customer retention:
Employee satisfaction External service quality Customer satisfaction Internal service quality Employee retention Customer retention

Profit

The PDCA Cycle is a checklist of the four stages which you must go through to get from `problem-faced' to `problem solved'. The four stages are Plan-Do-CheckAct, and they are carried out in the cycle illustrated below.

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The concept of the PDCA Cycle was originally developed by Walter Shewhart, the pioneering statistician who developed statistical process control in the Bell Laboratories in the US during the 1930's. It is often referred to as `the Shewhart Cycle'. It was taken up and promoted very effectively from the 1950s on by the famous Quality Management authority, W. Edwards Deming, and is consequently known by many as `the Deming Wheel'. Use the PDCA Cycle to coordinate your continuous improvement efforts. It both emphasises and demonstrates that improvement programs must start with careful planning, must result in effective action, and must move on again to careful planning in a continuous cycle. Also use the PDCA Cycle diagram in team meetings to take stock of what stage improvement initiatives are at, and to choose the appropriate tools to see each stage through to successful completion. How to use the PDCA Cycle diagram to choose the appropriate tool is explained in detail in the `How to use it' section below.

Plan-Do-Check-Act
Here is what you do for each stage of the Cycle: Plan to improve your operations first by finding out what things are going wrong (that is identify the problems faced), and come up with ideas for solving these problems. Do changes designed to solve the problems on a small or experimental scale first. This minimises disruption to routine activity while testing whether the changes will work or not. Check whether the small scale or experimental changes are achieving the desired result or not. Also, continuously Check nominated key activities (regardless of any experimentation going on) to ensure that you know what the quality of the output is at all times to identify any new problems when they crop up. Act to implement changes on a larger scale if the experiment is successful. This means making the changes a routine part of your activity. Also Act to involve other persons (other departments, suppliers, or customers) affected by the changes and whose cooperation you need to implement them on a larger scale, or those who may simply benefit from what you have learned (you may, of course, already have involved these people in the Do or trial stage).

You have now completed the cycle to arrive at `problem solved'. Go back to the Plan stage to identify the next `problem faced'. If the experiment was not successful, skip the Act stage and go back to the Plan stage to come up with some new ideas for solving the problem and go through the cycle again. Plan-Do-Check-Act

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describes the overall stages of improvement activity, but how is each stage carried out? This is where other specific quality management, or continuous improvement, tools and techniques come into play. The diagram below lists the tools and techniques which can be used to complete each stage of the PDCA Cycle.

This classification of tools into sections of the PDCA Cycle is not meant to be strictly applied, but it is a useful prompt to help you choose what to do at each critical stage of your improvement efforts.

P(PLAN ) D (DO) S(STUDY) A(ACT)

Determine What Is To Be Done Carry Out The Activities As Planned Study The Result Carefully Now As The Result Is Know ,Act On The Result And Find What Worked And What Did Not Work As Per Plan

STEP 1 STEP 2 STEP3 STEP 4 STEP 5

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:Identify improvement opportunity : Evaluate the current process : Analyze : Take Action : Study Result

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STEP 6 STEP 7 : Standardize solution : Plan for the future

Use the following links to learn more about 5 S

Sort - the first step in making things cleaned up and organized Set In Order - organize, identify and arrange everything in a work area Shine - regular cleaning and maintenance Standardize - make it easy to maintain - simplify and standardize Sustain -maintaining what has been accomplished

"Sorting" means to sort through everything in each work area. Keep only what is necessary. Materials, tools, equipment and supplies that are not frequently used should be moved to a separate, common storage area. Items that are not used should be discarded. Don't keep things around just because they might be used, someday. Sorting is the first step in making a work area tidy. It makes it easier to find the things you need and frees up additional space. As a result of the sorting process you will eliminate (or repair) broken equipment and tools. Obsolete fixtures, molds, jigs, scrap material, waste and other unused items and materials are disposed of. The objective of this step is to clean up the work area. Cleaning up not only makes things look nice, it makes it easier to spot maintenance needs such as an oil leak. It improves safety. It eliminates clutter and confusion. It removes tools, equipment, supplies and waste that interferes with getting the job

Set In Order (Organize)

This is step 2 in a Five S program: Step two is to organize, arrange and identify everything in a work area for the most efficient and effective retrieval and return to its proper place. Commonly used tools should be readily available. Storage areas, cabinets and shelves should be properly labeled. Clean and paint floors to make it easier to spot dirt, waste materials and dropped parts and tools. Outline areas on the floor to identify work areas, movement lanes, storage areas, finished product areas, etc. Put shadows on tool boards, making it easy to quickly see where each tool belongs.

In an office, provide bookshelves for frequently used manuals, books and catalogs. Labels the shelves and books so that they are easy to identify and return to their proper place. The objective in this step is: A place for everything and everything in it's place, with everything properly identified and labeled. This means there are two important parts to Systematic Organization - putting everything in its proper place and setting up a system so that it is easy to return each item to its proper place. The second part is where good labeling and identification practices are important. Both the equipment/tools and materials you use, as well as their proper storage locations, need to be clearly identified and labeled.
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Information about label and sign making equipment. Systematic organization not only refers to individual work areas. Your overall facility should also be systematically organized, including the proper placement of easy-to-understand labels and signs. Piping, valves, control panels, major equipment, doorways, minor equipment, instruments, storage areas, offices and files should all be clearly identified.

Shine (Regular Cleaning)

Step Three: Once you have everything, from each individual work area up to your entire facility, sorted (cleaned up) and organized, you need to keep it that way. This requires regular cleaning, or to go along with our third S, "shining" things up. Regular, usually daily, cleaning is needed or everything will return to the way it was. This could also be thought of as inspecting. While cleaning it's easy to also inspect the machines, tools, equipment and supplies you work with. Regular cleaning and inspection makes it easy to spot lubricant leaks, equipment misalignment, breakage, missing tools and low levels of supplies. Problems can be identified and fixed when they are small. If these minor problems are not addressed while small, they could lead to equipment failure, unplanned outages or long - unproductive - waits while new supplies are delivered. When done on a regular, frequent basis, cleaning and inspecting generally will not take a lot of time, and in the long run will most likely save time.

Standardize (Simplify)
Step Four: To ensure that the first three steps in your Five S program continue to be effective, the fourth step is to simplify and standardize. The good practices developed in steps 1 through 3 should be standardized and made easy to accomplish. Develop a work structure that will support the new practices and make them into habits. As you learn more, update and modify the standards to make the process simpler and easier. One of the hardest steps is avoiding old work habits. It's easy to slip back into what you've been doing for years. That's what everyone is familiar with. It feels comfortable. Use standards to help people work into new habits that are a part of your Five S program. Any easy way to make people aware of, and remind them about the standards is to use labels, signs, posters and banners.
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Sustain
Step Five: The final step is to continue training and maintaining the standards. Have a formal system for monitoring the results of your Five S program. Don't expect that you can clean up, get things organized and labeled, and ask people to clean and inspect their areas every day and then have everything continue to happen without any follow-up. Continue to educate people about maintaining standards. When there are changes - such as new equipment, new products, new work rules - that will effect your Five S program, and adjustments to accommodate those changes, make any needed changes in the standards and provide training that addresses those changes. Using 5s Posters and Signs: A good way to continue educating employees, and for maintain standards, is to use 5s posters and signs. You can create your own custom 5S posters, allowing you to communicate the specific information that needs to be communicated at each location. Changing work habits can be difficult, and it is easy to slip back into doing things the old, comfortable way. Use custom 5S posters to remind employees of the proper procedures, and of the benefits that come from following a 5s plan.

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