![Customer types
External and Internal customers
External current, prospective and lost customers
Internal Every person in a process is a customer of
the previous operation.( applies to
design,manufacturing,sales,supplies etc.) [Each
worker should see that the quality meets expectations
of the next person in the supplier-to-customer chain ]
TQM is commitment to customer-focus - internal and
external customers.](https://image.slidesharecdn.com/overallunit2-230627052307-dae3bd32/85/OVERALL-UNIT2-ppt-11-320.jpg)
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OVERALL UNIT2.ppt
- 1. UNIT - 2 TQM PRINCIPLES
- 2. Leadership concepts 12 characteristics of quality leaders(refer pgs 30,31 Besterfield) 7 Habits of highly effective people ( Pgs. 32-39 Besterfield) The Deming philosphy ( Pgs. 39-43 Besterfield)
- 3. 7 Habits of highly effective people ( Stephen Covey) Be pro-active Begin with the end in mind Put first things first (ref.Coveys Time management matrix pg.35) Think win-win Seek first to understand,then to be understood Synergy Sharpen the saw
- 4. Strategic Planning Strategic business planning is similar to strategic quality planning. 7 steps to strategic planning Customer needs Customer positioning Predict the future Gap analysis Closing the gap Alignment Implementation.
- 5. Strategic Quality Goals and Objectives Goals must be focused Goals must be concrete Goals must be based on statistical evidence Goals must have plan or method with resources Goals must have a time-frame Goals must be challenging yet achievable
- 6. Seven steps to Quality Planning Discover customer needs Customer positioning Predict the future Gap analysis Closing the gap - 6 -
- 7. 1. Customer Needs: The first step is to discover the future needs of the customers. Who will they be? Will your customer base change? What will they want? How will they want? How will the organization meet and exceed expectations? 2. Customer Positioning: Next, the planners determine where organization wants to be in relation to the customers. Do they want to retain, reduce, or expand the customer base. Product or services with poor quality performance should be targeted for breakthrough or eliminated. The organizations needs to concentrate its efforts on areas of excellence. 3. Predict the future: Next planners must look into their crystal balls to predict the future conditions that will affect their product or service. Demographics, economics forecasts, and technical assessments or projections are tools that help predict the future. 4. Gap Analysis : This step requires the planner to identify the gaps between the current state and the future state of the organization. An analysis of the core values and concepts is an excellent technique for pinpointing gaps. 5. Closing the Gap: The plan can now be developed to close the gap by establishing goals and responsibilities. All stakeholders should be included in the development of the plan. 6. Alignment: As the plan is developed, it must be aligned with the mission, vision, and core values and concepts of the organization. Without this alignment, the plan will have little chance of success. 7. Implementation: This last step is frequently the most difficult. Resources must be allocated to collecting data, designing changes, and overcoming resistance to change. Also part of this step is the monitoring activity to ensure that progress is being made. The planning group should meet at least once a year to assess progress and take any corrective action. - 7 -
- 8. Quality Council The quality council includes CEO and Senior managers of the functional areas -research,manufacturing,finance,sales ,marketing etc. and one co-ordinator and a union representative. Duties- To develop the Quality statements eg. Vision, Mission, Quality policy statements, Core values etc. To develop strategic long-term plans and annual quality improvement programme. Make a quality training programme Monitor the costs of poor quality. Determine the performance measures for the organisation Always find projects that improve the processes and produce customer satisfaction. Establish work-group teams and measure their progress. Establish and review the recognition and reward system for the TQM system
- 9. Quality Policy The quality policy is a guide for everyone in the organization as to how they should provide products and services to the customers. It should be written by the CEO with feedback from the workforce and be approved by the quality council. A quality policy is a requirement of ISO 9000. - 9 -
- 10. A simple quality policy is: Xerox is a quality company. Quality is the basic business principle for Xerox. Quality means providing our external and internal customers with innovative products and services that fully satisfy their requirements. Quality is the job of every employee.
- 11. Customer types External and Internal customers External current, prospective and lost customers Internal Every person in a process is a customer of the previous operation.( applies to design,manufacturing,sales,supplies etc.) [Each worker should see that the quality meets expectations of the next person in the supplier-to-customer chain ] TQM is commitment to customer-focus - internal and external customers.
- 12. Customer/supplier chain Inputs from external customers Internal customers Outputs to external customers
- 13. Internal customer/Supplier relationships Questions asked by people to their internal customers What do you need from me? What do you do with my output? Are there any gaps between what you need and what you get? Good team-work and inter- Departmental harmony is required. Also the leaders role in supervising the internal customer-supplier chain.
- 14. TQM and customer quality percepts TQM is quality management and management of quality there is no full stop and no break in the chain! Continuous process (quality) improvement is all its about. Why? One important reason is the customer quality level is not static and his expectations keep changing and his demands too! Also plant process dynamics- how to achieve maximum efficiency , optimizing cost and performance in the process operations, minimizing waste etc.
- 15. User purchase perceptions- from survey Performance Features Service Warranty Price Reputation ( refer pgs.72 and 73, Besterfield)
- 16. Service Quality (i )Organisation Identify each market segment Write down the requirements Communicate the requirements Organise processes Organise physical spaces
- 17. Service Quality (ii) Customer Care Meet the customers 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.
- 18. Service Quality (iii) Communication Optimize the trade-off between time and personal attention Minimize the number of contact points Provide pleasant,knowledgable and enthusiastic employees Write documents in customer-friendly language.
- 19. Service Quality (iv) Front-line people Hire people who like people Challenge them to develop better methods Give them the authority to solve problems Serve them as internal customers Be sure they are adequately trained Recognise and reward performance
- 20. Service quality (v)Leadership Lead by example Listen to the front-line people Strive for continuous process improvement (Pgs. 88-93 Besterfield)
- 21. Motivation Maslows Hierarchy of Needs Herzbergs Two-Factor Theory Achieving a motivated task-force (Pgs.104-105 Besterfield) Know thyself,Know your employees, Establish a positive attitude, share the goals,Monitor progress,Develop intersting work,Communicate effectively, Celebrate success.
- 22. Empowerment To invest people with authority to tap the potential in every worker (avoid the wastage of unrealised capacity) People have the ability,confidence and 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 organisational goals.
- 23. Conditions for empowerment Everyone must understand the need for change The system needs to change to the new paradigm The organisation must enable its employees. Teams (Pgs. 109-124 Besterfield)
- 24. Continuous Process Improvement Process refers to business and production activities of an Organisation. Processes for improvement- eg. Design & Manufacturing,Marketing,Stores & Purchase,etc. Inputs of the Process- Manpower,materials,money,data,etc. Outputs- Products,Services,data etc. Outputs need performance measures main outcome being customer satisfaction.(feedback is used to improve the process)
- 25. Continuous Process Improvement Process refers to business and production activities of an organisation Business processes- Manufacturing,Design, Sales,Purchase,Stores etc.are areas where non-conformance can be reduced and processes improved
- 27. Five ways to Improve a Process Reduce resources Reduce errors Meet or exceed expectations of internal/external customers Make the process safer Make the process more satisfying to the person doing it.
- 28. Continuous Process Improvement Jurans Trilogy Shewharts Plan-Do-Study-Act cycle Kaizen- making small incremental improvements to the individual and the organisation. (Pgs. 140-160,Besterfield)
- 29. Jurans Trilogy Three components - PLANNING,CONTROL AND IMPROVEMENT Based on financial processes ,such as budgeting(planning), expense measurement(control), and cost reduction (improvement)
- 30. Quality planning Cost of poor quality Operation region Original zone of Quality control New zone of quality control Quality Control- during Operations 0 0 20 40 Time Sporadic spike Chronic waste Opportunity for improvement. Quality improvement Lessons learned The Juran Trilogy Diagram
- 31. Four Improvement Strategies Repair Refinement Renovation Re-invention
- 32. Five types of Problems Compliance Unstructured Efficiency Process Design Product Design
- 34. PDSA cycle- seven steps or phases Identify the opportunity Analyze the current process Develop the optimal solution(s) Implement changes Study the results Standardise the solution Plan for the future.
- 35. Continuous Process Improvement cycle Phase I Identify the Opportunity Phase 2 Analyze the process Phase 3 Develop the optimal solution(s) Phase 4 Implementation Phae 5 Study the results Phase 7 Plan for the future Phase 6 Standardise the solution Act Plan Do Study Phase I Identify the Opportunity Phase 2 Analyze the process Phase 3 Develop the optimal solution(s) Phase 4 Implementation Phae 5 Study the results Phase 7 Plan for the future Phase 6 Standardise the solution
- 36. TQM principles from the Japanese The 3 K Method Kimerareta Kotoo What has been decided Kimerareta Tori must be followed Kichim to Mamorukoto as per standard.
- 37. The 5S Method Seiko - Sort ( Proper arrangement ) Seiton - Set ( Systematic or Orderliness ) Seiso - Shine ( Sweep or clean- up ) Seiketso - Standard ( Personal
- 38. Kaizen Technique Kaizen- defines the managements role in continuously encouraging and implementing small improvements in the individual & organization. Break the complex process into sub-processes and then improve the sub-processes. Continuous improvements in small increments make the process more efficient ,controllable and adaptable. Does not rely on more expense,or sophisticated equipment and techniques.
- 39. Kaizen Value and non-value added work activities Muda-seven classes of waste Principles of motion study and work-cell use Principles of materials handling and use of one-piece flow Documentation of standard operating procedures The 5Ss Visual displays for communicating to factory personnel JIT- to produce right quantities at right time and with right resources Poka-yoke to prevent or detect errors Team dynamics problem solving ,comm.,conflict resoln.
- 40. Kaizen Technique- change for good Kaizen Heijunka Kairetsu Kokusunka
- 41. Non-conformance rate when Process is centred -6 sigma Mean +6 sigma +3 sigma -3 sigma USL LSL
- 42. Employee Involvement Employee Involvement is one approach to improving quality and productivity. Motivation:- By Needs, Desire, Monetary Benefits, Incentives, Promotions, Facilities, Recognition, Etc. Need For Employee Involvement To take Right Decision Making Full Knowledge & Skill to be used Solve Problems Morale & Commitment Leadership Creativity & Innovation
- 43. Maslows Need Theory SURVIVAL SECURITY SOCIAL ESTEEM SELF -ACTUALISATION
- 44. HERZBERGS TWO-FACTOR THEORY MOTIVATORS Recognition, Responsibility Achievement Promotion Work Environment HYGIENE or DISSATISFIERS FACTORS Low Salary Minimum Benefits Poor Working Conditions, I ll Defined Organization Policies Partiality Perks
- 45. Motivated Work Force Know Thyself Know your Employees Establish a Positive Attitude Share the goal Monitor Progress Develop Interesting Work-Job Rotation, Enlargement & Enrichment. Communicate & Celebrate Success
- 46. TEAMS DEFINITION A Team is defined as a group of people working together to achieve common Objectives or Goals. WHY TEAMS WORK More Knowledgeable Special Abilities Pool Together More Interaction More Cordial Relationship & Better Job Better Communication TYPES OF TEAMS Process Improvement Team Cross-Functional Team Self Directed Teams Natural Work Teams
- 47. DECISION-MAKING METHOD No Decision Unilateral Decision Hand Clasp Decision Minority- Rule Decision Majority- Rule Decision Consensus
- 48. Barriers to Team Progress Insufficient Training Incompatible Compensation First Line Supervisor Resistance Lack of Planning Lack of Management Support Lack Union Support Project Scope Too Large No Clear Measure of Success No Sufficient Time Given
- 49. Benefits of Employee Involvement Empowering Better Decisions Better improvement Corrective Action Effective Cooperation &Communication Loyalty Increases & Floating Population Reduces More Money to Share
- 50. SUPPLIER PARTNERSHIP An efficient SCM , built on strong partnerships will create high levels of people satisfaction and customer satisfaction. Ensuring the partnership processes for an organization is use of QMS Audits, reviews and action plans. Partnership are Planned and managed must be in line with overall policies and strategies and support the operation of the processes.
- 51. Principles of Customer & Supplier Partnership by Dr Kaoru Ishikawa Customer & Supplier are fully Responsible for Control for Quality. Customer & Supplier are Independent of each other. Customers must be given full Information about the raw material, semi finished products (or) services required. Clear Contract regarding Quality, Quantity, Price, Delivery Modes, Etc.
- 52. Principles of Customer & Supplier Partnership by Dr Kaoru Ishikawa Evaluation of Same Quality Standards by Both the Customers & Suppliers Problem Solving By Discussion Exchange Information & Feed Back Both Customer & Supplier do Business transaction w.r.t. END USER.
- 53. PARTNERING Long Term Commitment Trust Shared Vision SOURCING Sole Multiple Single
- 54. SUPPLIER SELECTION BASED ON Quality Philosophy of the Customer Stable Management High Technical Standards With Future Raw materials & Parts Meet Quality Std Delivery as per Schedule Effective Quality System Record of Customer Satisfaction Credibility in Industries
- 55. Supplier Rating Quality On Time delivery Service Internal Structure Customer Satisfaction Review Reports
- 56. Potential Pitfalls of Partnership Fear of Unknown Concept Starting Early Poor Communication Impatience Mistrust Over dependency Time & Resources
- 58. PERFORMANCE MEASURE IN TQM Performance can be expressed in Financial & Non Financial Terms. Performance Measure Provides the right direction. Performance Based on Quality, Product, Service, Process, Sales, Customer Satisfaction, Cost Reduction. Performance Shows Whether the Organization makes Profit (or) Loss
- 59. Performance Based On Objectives Customers Suppliers Production Human Resources R & D Marketing / Sales
- 60. Strategic Measurement System Quality Cost Flexibility Innovation Reliability Graphs, Bar Diagram, Control Charts Taguchi Loss Function
- 61. End of Unit-2