TOTAL QUALITY MANAGEMENT

20EME732 TOTAL QUALITY MANAGEMENT

V V K Lakshmi
Asst Professor
Department of Mechanical Engg
GITAM UNIVERSITY
UNIT I INTRODUCTION 9
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 II TQM PRINCIPLES 9
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.
UNIT III TQM TOOLS & TECHNIQUES I 9
The seven traditional tools of quality – New management tools – Six-sigma: Concepts,
methodology, applications to manufacturing, service sector including IT – Bench marking
– Reason to bench mark, Bench marking process – FMEA – Stages, Types.
UNIT IV TQM TOOLS & TECHNIQUES II 9
Quality circles – Quality Function Deployment (QFD) – Taguchi quality loss function –
TPM – Concepts, improvement needs – Cost of Quality – Performance measures.
UNIT V QUALITY SYSTEMS 9
Need for ISO 9000- ISO 9000-2000 Quality System – Elements, Documentation, Quality
auditing- QS 9000 – ISO 14000 – Concepts, Requirements and Benefits – Case studies
of TQM implementation in manufacturing and service sectors including IT.
TOTAL: 45 PERIODS

http://www.notesengine.com/dept/cse/7sem/anna-university-7-sem-cse-notes.html
2. http://www.vidyarthiplus.com/vp/Thread-GE2022-Total-Quality-Management-
Lecture-Notes-
Lonely-Edition
3. http://freshupdates.in/lecture-notes/anna-university-total-quality-management-
lecture-notes/
4. http://www.iannauniversity.com/2012/06/ge2022-total-quality-management-
lecture.html
5. http://www.nprcet.org/e%20content/Misc/e-Learning/ECE/IV%20year-
VIII%20semester/MG1301%20TOTAL%20QUALITY%20MANAGEMENT.pdf
6. www.wsu.edu/~chenbi/mgtop340/lecture/Quality.doc info.psu.edu.sa/psu/cis/.../IS370-
Sameh%20Lecture%20Notes-links.html

1.1.1 PREREQUISITE DISCUSSIONS

Quality is in its essence a way of management of the organization.

Quality is conformance to customer requirements. The requirements have many dimensions.

Thenumber of quality experts also called quality gurus contributed to the evolution of quality.

AN INTRODUCTION:

A name itself is sufficient to describe everything but a bit more clarification will add to a
base for thedescription. Total quality management is a management’s approach towards the
quality, it can be inregard to products, customer satisfaction and employees satisfaction. The
concept of TQM wasdeveloped by an American W. Edwards Deming and i.e. why it is called
as Deming’s concept ofTQM .He introduced this concept for improving the quality of various
products and services. Earlierit was just related with the quality of products which a
organization is producing but now otherconcepts like marketing, finance design, customer
service has also joined the area. Which means thatnow good numbers of things are there to
manage. TQM works on one belief that mistakes can beavoided and defects can be prevented.
And management should believe in watching each and everystep.

TQM is now a day’s called as TPM (total productivity management) and an organization

needs to consider ABCD for the effective application of TQM where A stands for accident
cure , Bstands for breakdown , C stands for cost reduction and D stands for damage. This
policy of ABCD isin relation to product and if TQM needs to be introduced a positive attitude
from the side ofmanagement and employees is required and then a collective effort will come
up. TQM should givechance for unleashing employee’s creativity and potential. The aim of
TQM is to reduce variations inquality of the products as well as in the working of whole
organization. For the successfulimplementation of TQM, an organization must consider the
commitment from all the level oforganization. A concept of Six sigma is a part of TQM. It is
a strategy developed by Motorola and ithelps to detect the defects and to remove them.

TQM talks about the satisfaction of customer, supplier, employees etc. and it
requirescontinuous improvement. If the workers of an organization are efficiently working
then their moralewill go up. TQM works effectively if the organization works in a family
manner. Here management islike a father, employees are the children and manager is like
mother and as father and mother takescare for their home collectively the same way ,
management and managers are supposed to take carefor their organization with the help of
tool called TQM. Total quality management is called totalbecause entire organization is
involved, Quality means degree of excellence. And management inliteral sense means getting
things done by others. In a TQM effort, all members of an organizationparticipate in
improving processes, products, services and the culture in which they work. The
earlierintroduced quality management concept is now taken over by Total quality
management. To haveeffective TQM the first requirement is strong internal motivation and
emotional involvement forimplementation. So the concept of TQM talks about adopting the
new policy, creating qualityproducts, eliminate defects, estimate for breakdown, accidents etc
. Hence TQM should be purposedriven so first the whole organization should be willing to
accept the change then only TQM canactually affect the organization in a positive way.

1.2. CONCEPT

1.2.1. Need for quality:

The need for quality was felt, during World War II due to the unprecedented need for
manufacture.

goods. From them on methodologies for assuring quality in products and services evolved

continuously finally lead to TQM.

1.2.2. Evolution of quality (or) GURUS OF TQM:

SHEWHART - Control chart theory

PDCA Cycle

DEMING - Statistical Process Control

JURAN - Concepts of SHEWHART

- Return on Investment (ROI)

FEIGANBAUM - Total Quality Control

- Management involvement

- Employee involvement

- Company wide quality control

ISHIKAWA - Cause and Effect Diagram

- Quality Circle concept

CROSBY - “Quality is Free”

- Conformance to requirements

TAGUCHI - Loss Function concept

- Design of Experiments

1.2.3. DEFINING QUALITY:

Quality is fitness for use

Quality is conformance to requirements

Quality is the totality of features and characteristics of a product or service that bear on its
ability to

satisfy stated and implied needs of customer.

Quality can be quantified as follows

 UNIT – II

2.1. LEADERSHIP

“Leadership is lifting of man’s visions to higher sights, the raising of man’s performance to a

higher standard, the building of man’s personality beyond its normal limitations”.

Introduction:

The success of quality management is to a greater extent is influenced by the quality of the

leadership. Peter Drucker, the eminent management thinker and writer quotes: “Leadership is
lifting.

of man’s visions to higher sights, the raising of man’s performance to a higher standard, the building.

of man’s personality beyond its normal limitations”.

Leadership is the process of influencing others towards the accomplishment of goals. Leader

triggers the will to do, show the direction and guide the group members towards the
accomplishment.

of the company’s goal.

2.2 CHARACTERISTICS FOR LEADERSHIP

[1] The customers first.

[2] Value people.
[3] Built supplier partnership.
[4] Empower people.
[5] Demonstrate involvement/commitment.
[6] Strive for excellence.
[7] Explain and deploy policy.
[8] Improve communication.
[9] Promote teamwork.
[10] Benchmark continuously.
[11] Establish system.
[12] Encourage collaboration.

2.3 LEADERSHIP ROLES

1. Producer role.

2. Director role.

3. Coordinator role roles.

4. Checker role.

5. Stimulator role.

6. Mentor role.

7. Innovator role.
8. Negotiator role.

2.4 LEADERS

  Shape the Organization’s value

  Promote the Organization’s value
  Protect the Organization’s value and
  Exemplifies the Organization values

2.5 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.

2.6 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.

2.7 THE 7 HABITS OF HIGHLY EFFECTIVE PEOPLE:

1. Be Proactive

2. Begin with the End in mind

3. Put First Things First

4. Think Win – Win

5. Seek First to Understand, then to Be Understood

6. Synergy

7. Sharpen the Saw (Renewal)

2.8 ROLE OF SENIOR MANAGEMENT

1. Management by Wandering Around (MBWA).

2. Strategy of problem solving and decision making.

3. Strong information base.

4. Recognition and Reward system.

5. Spending most of the time on Quality.

6. Communication.

7. Identify and encourage potential employee.

8. Accept the responsibility.

9. To play a role model.

10. Remove road blocks.

11. Study TQM and investigate how TQM is implemented elsewhere.

12. Establish policies related to TQM.

13. Establish ‘priority of quality’ and ‘customer satisfaction’ as the basic policy.

14. Assume leadership in bringing about a cultural change.

15. Check whether the quality improvement programmes are conducted as planned.

16. Become coaches and cheer leaders to implement TQM.

17. Generate enthusiasm for TQM activities.

18. Visit other companies to observe TQM functioning.

19. Attend TQM training programme.

20. Teach others for the betterment of society and the surroundings

2.9 QUALITY COUNCIL

A quality council is established to provide overall direction.

The council is composed of

[1]  Chief Executive Officer

[2]  Senior Managers
[3]  Coordinator or Consultant
 [4]  A representative from the Union
Duties of the council are

[1]  Develop the core values, vision statement, mission statement and quality policy statement
[2]  Develop the strategic long term plan with goals and Annual Quality Improvement Program
[3] with objectives
[4]  Create the total education and training plan
[5]  Determine and monitor the cost of poor quality
[1]  Determine the performance measures
[2]  Determine projects those improve the process
[3]  Establish multifunctional project and work group teams
[4]  Revise the recognition and rewards system

A typical meeting agenda will have the following items

[1]  Progress report on teams

[2]  Customer satisfaction report
[3]  Progress on meeting goals
[4]  New project teams
[5]  Benchmarking report

Within three to five years, the quality council activities will become ingrained in the culture of the

organization.
USING CUSTOMER COMPLAINTS

Actions an organization can take to handle complaints are as follows

[1]  Investigate customers experiences by actively getting feed back, both positive and
negative,
[2] and then acting on it promptly
[3]  Develop procedures for complaint resolution that include empowering front – line
[4] personnel.
[5]  Analyzecomplaints, but understand that complaints do not always fit into neat categories.
[6]  Work to identify process and material variations and then eliminate the root cause. “More
[7] inspection” is not corrective action.
[8]  When a survey response is received, a senior manager should contact the customer and
[9] strive to resolve the concern.
 [10] Establish customer satisfaction measures and constantly monitor them.
[11] Communicate complaint information, as well as the results of all investigations
andsolutions, to all people in the organization.
[12] Provide a monthly complaint report to the quality council for their evaluation and, if
needed,the assignment of process improvement teams.
[13] Identify customers’ expectations beforehand rather than afterward through
complaintanalysis.

SERVICE QUALITY
Customer service is the set of activities an organization uses to win and retain customer’s

satisfaction. It can be provided before, during, or after the sale of the product or exist on its own.

Elements of customer service are

Organization

1. Identify each market segment.

2. Write down the requirements.

3. Communicate the requirements.

4. Organize processes.

5. Organize physical spaces.

Customer Care

6. Meet the customer’s expectations.

7. Get the customer’s point of view.

8. Deliver what is promised.

9. Make the customer feel valued.

10. Respond to all complaints.

11. Over – respond to the customer.

12. Provide a clean and comfortable customer reception area.

Communication
13. Optimize the trade – off between time and personal attention.

14. Minimize the number of contact points.

15. Provide pleasant, knowledgeable and enthusiastic employees.

16. Write document in customer friendly language.

Front-Line people
17. Hire people who like people.
18. Challenge them to develop better methods.

19. Give them the authority to solve problems.

20. Serve them as internal customers.

21. Be sure they are adequately trained.

22. Recognize and reward performance.

23. Lead by example.

24. Listen to the front-line people.

25. Strive for continuous process improvement.

2.16 CUSTOMER RETENTION

It means “retaining the customer” to support the business. It is more powerful and effective than

customer satisfaction.

For Customer Retention, we need to have both “Customer satisfaction & Customer loyalty”.

The following steps are important for customer retention.

1. Top management commitment to the customer satisfaction.

2. Identify and understand the customers what they like and dislike about the organization.

3. Develop standards of quality service and performance.

4. Recruit, train and reward good staff.

5. Always stay in touch with customer.

6. Work towards continuous improvement of customer service and customer retention.

7. Reward service accomplishments by the front-line staff.

8. Customer Retention moves customer satisfaction to the next level by determining what is truly

important to the customers.

9. Customer satisfaction is the connection between customer satisfaction and bottom line.

2.17 Employee Involvement

 Employee involvement is one approach to improve quality and productivity.

 It is a means to better meet the organization’s goals for quality and productivity.

2.18 MOTIVATION

CONCEPT OF MOTIVATION

a. Scott defines, “Motivation means a process of stimulating people to accomplish desired

goals.”
b. Edwin B. Flippo defines, “Motivation is the process of attempting to influence others to do

your will through the possibility of reward.”

c. In simple words, motivation is the process of inducing people inner drives and action towards

certain goals and committing his energies to achieve these goals.

IMPORTANCE OF MOTIVATION

a. Motivation improves employee involvement.

b. Motivation promotes job satisfaction and thus reduces absenteeism and turnover.

c. Motivation helps in securing a high level of performance and hence enhances efficiency and

productivity.

d. Motivation creates a congenial working atmosphere in the organization and thus promotes

interpersonal cooperation.

THEORIES OF MOTIVATION

Though there are many theories of motivation, the Maslow’s hierarchy of needs theory and

Herzberg’s two factor theory are more important from our subject of view.

MASLOW’S HIERARCHY OF NEEDS

2.20 Herzberg’s Two Factor Theory

This theory is also called motivation-hygiene theory. This theory is based on two factors: 1.

Motivation factors or satisfiers, and 2. Hygiene factors or dissatisfiers. Various motivation and

hygiene factors are listed in Table.

According to Herzberg, maintenance or hygiene factors are necessary to maintain a reasonable

level of satisfaction among employees. These factors do not provide satisfaction to the employees
but

their absence will dissatisfy them. Therefore these factors are called dissatisfiers.On the other hand,
motivational factors creates satisfaction to the workers at the time ofpresence but their absence
does not cause dissatisfaction. It can be noted that Herzberg’s dissatisfiersare roughly equivalent to
Maslow’s lower levels, and the motivators are similar to the Maslow’supper levels.

ACHIEVING A MOTIVATED WORK FORCE

The building of a motivated work force if for the most part an indirect process. Concepts to

achieve a motivated work force are as follows:

1. Know thyself.

2. Know your employees.

3. Establish a positive attitude.

4. Share the goals.

5. Monitor progress.

6. Develop interesting work.

 Job rotation

 Job enlargement

 Job enrichment

7. Communicate effectively

8. Celebrate success

EMPLOYEE SURVEYS

Employee surveys help managers assess the current state of employee relations, identify trends,

measure the effectiveness of program implementation, identify needed improvements, and increase

communication effectiveness.

STEP 1 The Quality Council to create a multifunctional team

STEP 2 The Team will develop survey instrument

STEP 3 Administer the survey

STEP 4 Results are compiled and analyzed

STEP 5 Determine areas for improvement

Employee involvement is creating an environment in which people have an impact on

decisions and actions that affect their jobs

Tell: the supervisor makes the decision and announces it to staff. The supervisor provides

complete direction.

Sell: the supervisor makes the decision and then 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: the supervisor invites employees to make the decision with the supervisor. The

supervisor considers her voice equal in the decision process.

Delegate: the supervisor turns the decision over to another party.

Seven Rules of Motivation

#1 Set a major goal, but follow a path. The path has mini goals that go in manydirections. When you
learn to succeed

#2 Finish what you start. A half-finished project is of no use to anyone. Quitting isa habit. Develop
the habit of finishing self-motivated projectsed at mini goals, you will be motivated tochallenge
grand goals

#3 Socialize with others of similar interest. Mutual support is motivating. We willdevelop the
attitudes of our five best friends. If they are losers, we will be a loser. Ifthey are winners, we will be a
winner. To be a cowboy we must associate withcowboys.

#4 Learn how to learn. Dependency on others for knowledge supports the habit ofprocrastination.
Man has the ability to learn without instructors. In fact, when welearn the art of self-education we
will find, if not create, opportunity to find successbeyond our wildest dreams.

#5 Harmonize natural talent with interest that motivates. Natural talent createsmotivation,
motivation creates persistence and persistence gets the job done.

#6 Increase knowledge of subjects that inspires. The more we know about asubject, the more we
want to learn about it. A self-propelled upward spiral develops.

#7 Take risk. Failure and bouncing back are elements of motivation. Failure isalearning tool. No one
has ever succeeded at anything worthwhile without a string offailures.
CONCEPT OF EMPOWERMENT

Empowerment is the opposite of helplessness or dependency. An empowered person does not

feel incapable of doing the things that he considers important for the well-being of his organization.

There are no constraints that he perceives to be externally imposed. In other words, being
empowered

implies that the person acts from a state of autonomy, doing what he knows is the right thing to do

under a given set of circumstances.It is understood that empowerment is dependent upon two
factors:

(i) An individual’s personal choices; and

(ii) The organization climate, that can either encourage dependency or foster autonomy.

DEFINITION

1. According to Webster’s Dictionary, the verb empower means ‘to give the means, ability or
authority’. Therefore empowerment in work setting involves giving people the means, ability and
authority to do something they have not done before.

2. An operation definition of empowerment: “Empowerment is an environment in which people

have the ability, the confidence, 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.”

Job Enrichment Vs Job Empowerment

Job enrichment is aimed at expanding the content of an individual’s job. But jobempowerment
focuses on expanding on the context of the job such as its interactions andinterdependencies to
other functions of the organization.

Empowerment is investing people with authority. It’s purpose is to tap the enormous reservoir

of potential contribution that lies within every worker.

The two steps to empowerment are

1. To arm people to be successful through coaching, guidance and training.

2. Letting people do by themselves

The principles of empowering people are given below.

1. Tell people what their responsibilities are.

2. Give authority.

3. Set standards for excellence.

 4. Render training.

5. Provide knowledge and information.

6. Trust them.

7. Allow them to commit mistakes.

8. Treat them with dignity and respect

Three dimensions of empowerment are

Capability

Alignment and

Trust

CHARACTERISTICS OF EMPOWERED EMPLOYEES

Some important characteristics of empowered employees, identified by Hubert Ram, are that:

a. They feel responsible for their own task.

b. They are given a free hand in their work.
c. They balance their own goals with those of the organization.
d. They are well trained, equipped, creative, and customer oriented.
e. They are critical, have self-esteem, and are motivated.
f. They are challenged and encouraged.
g. They monitor and improve their work continuously.
h. They find new goals and change challenges.

TEAMS
Employee involvement is optimized by the use of teams.
A team is defined as a group of people working together to achieve
common objectives orgoals.
Teamwork is the cumulative actions of the team during which each member
of the teamsubordinates his individual interests and opinions to fulfill the
objectives or goals of the group.

WHY TEAMS WORK

1. Many heads are more knowledgeable than one.
2. The whole is greater than the sum of its members.
3. Team members develop a rapport which each other.
4. Teams provide the vehicle for improved communication.
2.24 TYPES OF TEAMS
1. Process improvement team.
2. Cross – functional team.
3. Natural work teams.
4. Self – Directed / Self – Managed work teams.
2.25 CHARACTERISTICS OF SUCCESSFUL TEAMS:
1. Sponsor 2. Team Charter
3. Team Composition 4. Training
5. Ground Rules 6. Clear Objectives
7. Accountability 8.Well-Defined decision procedure
9. Resources 10. Trust
11.Effective Problem Solving 12. Open Communication
13. Appropriate Leadership 14. Balanced Participation
15. Cohesiveness
The effective team should have certain characteristics. These are :

1. Sponsor : In order to have effective liason with the quality council, there should be a sponsor. The

sponsor is a person from the quality council, he is to provide support to the organization.

2. Team Charter : A team charter is a document that defines the team’s mission, boundaries, the

background of the problem, the team’s authority and duties, and resources. It also identifies the

members and their assigned roles – leader, recorder, time keeper and facilitator.

3. Team Composition : The size of the team should not exceed ten members except in the case of

natural work teams or self-directed teams. Teams should be diversed by having members with

different skills, perspective and potential. Wherever needed, the internal and external customers
and

suppliers should be included as a team member.

4. Training : The team members should be trained in the problem-solving techniques, team dynamics

and communication skills.

5. Ground Rules : The team should have separate rules of operation and conduct. Ground rules

should be discussed with the members, whenever needed it should be reviewed and revised.

6. Clear Objectives: The objective of the team should be stated clearly. Without the clear objective,

the team functions is not to be effective.

7. Accountability: The team performance is accountable. Periodic status report of the team should
be

given to the quality council. The team should review its performance to determine possible team

process weaknesses and make improvements.

8. Well-defined Decision Procedures: The decision should be made clearly at the right time by the

team.

9. Resources: The adequate information should be given to the team wherever needed. The team

cannot be expected to perform successfully without the necessary tools.

10. Trust : Management must trust the team to perform the task effectively. There must also be
trust

among the members and a belief in each other

11. Effective Problem-Solving : Problem-solving methods are used to make the effective decision.

12. Open Communication : Open communication should be encouraged i.e., everyone feels free to

speak in the team whatever they are thinking, without any interruptions

13. Appropriate Leadership: Leadership is important in all the team. Leader is a person who leads

the team, motivates the team and guides the team in a proper direction.

14. Balanced Participation : Everyone in a team should be involved in the team’s activities by

voicing their opinions, lending their knowledge and encouraging other members to take part.

15. Cohesiveness: Members should be comfortable working with each other and act as a single unit,

not as individuals or subgroups.

(i) STAGES OF TEAM DEVELOPMENT

Each term takes sometime to start functioning effectively towards problem solving. Each team

goes through six distinct stages in its development. These are farming, storming, norming,

performing maintenance and evaluating.

1. Farming stage : When a team is created, it consist of group of individuals and team work does not

exist at this stage. Team’s purpose, members’ roles, acceptance of roles, authority and process of

functioning are learnt in the formation process.

2. Storming stage : Initial agreements and role allocations are challenged and re-established at this

stage of team development. At this stage, hostilities and personal needs often emerge which may be

resolved.

3. Norming stage : During norming stage of team development, formal and informal relationships get

established among team members. Openness and cooperation have been observed as signs of
team’s

behaviour.

4. Performing stage : At this stage, the team starts operating in successful manner. Trust, openness,

healthy conflict and decisiveness of a group’s performance can be reached at this stage.

TEAM MEMBER ROLES

TEAM LEADER

 Ensures the smooth and effective operation of the team.

 Facilitates the team process.

 Serves as a Contact Point.

 Organizes the implementation of changes.

 Prepares the meeting agenda.

FACILITATOR

 Supports the leader.

 Focuses on the team process.

 Acts as a resource to the team.

 Provides feedback to the team.

 RECORDER

 Documents the main ideas of the team’s discussion, the issues raise, decisions made, action

items etc.

 Presents the documents and distributes the MOM.

 Participates as a team member.

TIMEKEEPER

 Ensures that the team maintains the schedule.

 Participates as a team member.

TEAM MEMBER

 Contributes best, without reservation.

 Respects other people’s contributions.

 Listens carefully and asks questions.

Works for consensus on decisions.

 Supports the decision of the team.

 Understands and is committed to the team objectives.

 Respects and is tolerant of individual differences.

 Acknowledges and works through conflict openly.

 Carries out assignments.

DECISION MAKING METHODS

1. Non-decision.

2. Unilateral decision.

3. Handclasp decision.

4. Minority-rule decision.

5. Majority-rule decision.

6. Consensus.

COMMON BARRIERS TO TEAM PROGRESS

 Insufficient training.

 Incompatible rewards and compensation.

 First-line supervisor resistance.

 Lack of planning.

 Lack of management support.

 Access to information systems.

 Lack of Union support.

 Project scope too large.

 Project objectives are not significant.

 No clear measures of success.

 No time to do improvement work.

RECOGNITION AND REWARD

MEANING:

Recognition is a process whereby management shows acknowledgement of an employee’s

outstanding performance. Recognition is a form of employee positive motivation. Recognition of

employees is highly essential as people find themselves in a accepted and winning role. To sustain

employee’s interest and to propel them towards continuous improvement, it is essential to

recognize

the people. This acknowledgement may be of financial, psychological or both in nature.

Ways to recognize people

Send letters to improve team members when they establish a team thanking them for their

involvement.

1. Develop a behind the scenes awards specifically for those whose actions are not usually in
the lime light, make sure such awards are in the lime light.

2. Create best ideas of the year booklet and include everyone’s picture name and description of

their best ideas.

3. Feature the quality team of the month and put their picture in a prominent place.

4. Honor peers who have helped you by recognizing them at your staff meetings.

5. Let people attend meetings, committees etc; in your place when you are not available.

6. Involve teams with external customers and suppliers, sending them on appropriate visits to

solve problems and look for opportunities.

7. Invite a team for coffee or lunch at any time, not necessarily when you need them for

something.

8. Create a visibility wall to display information, posters, and pictures, thanking individual

employees and their teams, and describing their contributions.

WHY SHOULD ONE RECOGNISE PEOPLE

1. improve employees morale

2. show the company’s appreciation for better performance

3. create satisfied workplace

4. Create highly motivated workplace.

5. Reinforce behavioral patterns.

6. Stimulate creative efforts.

REWARD

MEANING:

Reward is a tangible one, such as increased salaries, commissions, cash bonus, gain sharing,

etc; to promote desirable behavior.

TYPES OF REWARDS:

1. Intrinsic rewards

2. Extrinsic rewards

Intrinsic rewards are related to feelings of accomplishment of self-worth.

Extrinsic reward are related to pay or compensation issues.

INTRINSIC REWARDS
1. Non-monetary forms of recognition to acknowledge achievement of quality improvement goals.

2. Celebration to acknowledge achievement of quality improvement goals.

3. Regular expressions of appreciation by managers and leaders to employees to acknowledge

achievement of quality improvement goals.

4. 360 degree performance appraisals feedback from co-workers subordinates to customers is

incorporated into performance appraisals

EXTRINSIC REWARDS:

1. Profit sharing

2. gain sharing

3. employment security

4. compensation time

5. individual based performance systems

6. quality based performance appraisals

EFFECTS OF RECOGNITION AND REWARD SYSTEM

1. Recognition and reward go together for letting people know that they are valuable members for

the organization.

2. Employee involvement can be achieved by recognition and reward system.

3. Recognition and reward system reveals that the organization considers quality and productivity

as important.

4. It provides the organization an opportunity to thank high achievers.

5. It provides employees a specific goal to achieve.

6. It motivates employees to improve the process.

7. It increases the morale of the workers.

2.28 PERFORMANCE APPRAISAL

The performance appraisal is used to let employees know how they are performing. The
performance

appraisal becomes a basis for promotions, increase in salaries, counseling and other purposes
related

to an employee’s future.

IMPORTANCE OF PERFORMANCE APPRAISALS

IMPORTANCE OF PERFORMANCE APPRAISALS

1. It is necessary to prevail a good relationship between the employee and the appraiser.

2. Employee should be informed about how they are performing on a continuous basis, not just at

appraisal time.

3. The appraisal should highlight strength and weakness and how to improve the performance.

4. Employee should be allowed to comment on the evaluation and protest if necessary.

5. Everyone should understand that the purpose of performance appraisal is to have employee

involvement.

6. Errors in performance evaluations should be avoided.

7. Unfair and biased evaluation will render poor rating and hence should be eliminated.

2.29 BENEFITS OF EMPLOYEE INVOLVEMENT

Employee involvement improves quality and increases productivity because

 Employees make better decisions using their expert knowledge of the process

 Employees are better able to spot and pin-point areas for improvement.

 Employees are better able to take immediate corrective action.

 Employee involvement reduces labour / management friction.

 Employee involvement increases morale.

 Employees have an increased commitment to goals because they are involved.

CONTINUOUS PROCESS IMPROVEMENT

Continuous process improvement is designed to utilize the resources of the organization to

achieve a quality-driven culture.

Improvement is made by

 Viewing all work as process.

 Making all process effective, efficient and adaptable.

 Anticipating changing customer needs.

 Controlling in-process performance using measures such as scrap reduction, control charts

etc.

 Eliminating waste and re-work.

 Eliminating non-value added activities.

 Eliminating non-conformities.

 Using Benchmarking.

 Incorporating learned lessons into future activities.

 Using technical tools such as SPC, benchmarking, experimental design, QFD et

PDCA CYCLE
Criteria for a good problem statement is as follows

 It clearly describes the problem.

 It states the effect.

 It focuses on what is known, unknown etc.

 It emphasizes the impact on the customer.

2. ANALYZE THE CURRENT PROCESS

The objective is to understand the process and how it is currently performed.

Step 1 : The team to develop a process flow diagram.

Step 2 : The target performance measures are defined.

Step 3 : Collection of all available data and informationCommon items of data and information are

1. Customer information 2. Design information

3. Process information 4. Statistical information

5. Quality information 6. Supplier information

3. DEVELOP THE OPTIMAL SOLUTION(S)

This phase has the objective of establishing potential and feasible solutions and recommending the

best solution to improve the process.

 Creativity plays the major role, and brainstorming is the principal technique.

 There are three types of creativity:

 Create new processes

 Combine different processes

 Modify the existing process

4. IMPLEMENT CHANGES

This phase has the objective of preparing the implementation plan, obtaining approval and

implementing the process improvements.

 Approval of the quality council.

 Obtain the advice and consent of departments, functional areas, teams, individuals etc.

 Monitor the activity.

5. STUDY THE RESULTS

This phase has the objective of monitoring and evaluating the change by tracking and studying the

effectiveness of the improvement efforts.

6. STANDARDIZE THE SOLUTION

 Institutionalize by positive control of the process.

 The quality peripherals – the system, environment and supervision must be certified.

 Operators must be certified.

7. PLAN FOR THE FUTURE

The objective is to achieve improved level of process performance.

 Regularly conduct reviews of progress by the quality council.

 Establish the systems to identify area for future improvements.

 Track performance with respective internal & external customers.

 TQM tools and techniques are used to improve quality, delivery and cost
PDSA CYCLE (OR DEMINGWHEEL)

The basic Plan – Do – Study – Act cycle was originally developed by Walter A. Shewart. But

it was popularized by Edward Deming and that’s why it is often called the Deming Cycle or Deming

Wheel. It is an effective continuous improvement technique.

 What is PDSA Cycle?

 PDSA stands for Plan, Do, Study, and Act. It is a model for testing ideas that you think may

create improvement.

 It is an extremely practical, common sense based approach that is easy to understand.

 It can be used to test ideas for improvement quickly and easily based on existing ideas,

research, feedback, theory, review, audit, etc.

 It encourages starting with small changes, which can build into large improvements in the

service through successive quick cycles of change.

 Illustrates the PDSA cycle.

Phases of PDSA Cycle

The four phases of PDSA cycle and their descriptions are presented in Table.

Phases of PDSA Cycle

Phases Description

1. Plan
 Define the problem

 Analyze the causes and draft an action plan for solving the problem.

 Determine the quality objectives and the critical factors.

 Define the performance indicators.

 Collect and analyze the necessary process data.

 Generate possible solutions

 Select the most feasible solution; and work it out.

2. Do
 First, implement the plan on a limited scale or conduct an experiment to test the proposed

improvement. Collection data is hereby essential.

 Train all involved employees in the use of quality improvement methods and techniques.

 Describe the process which is considered for improvement and form project teams to lead
the process.

3. Check
 Evaluate the trial project with the performance indicators.

 Verify whether the improvement has been successful or not.

4. Act
 Act to implement proven improvements. The choices are:
introduce the plan, adjust orreject it.

 The improvements are documented in standard procedures so all employees are wellinformed

on how to handle in future.

 Usually, the cycle will be repeated under the different circumstances and conditions to test

how consistent the results are.

Continuous Process Improvement Cycle Using PDCA

The relationship between the PDSA cycle and eleven steps to continuous process

improvement are illustrated in figure.

Each phase of the PDCA cycle must undergo its own PDCA cycle for further improvements,

as shown in figure

Benefits of the PDSA Cycle

The benefits of the PDSA cycle can be experienced in the following areas:

 Daily routine management – for the individual and / or the team.

 Problem-solving process.

 Project management
 Continuous development

 Vendor development

 Human resources development

 New product development

 Process trials

Kaizen is a Japanese word for the philosophy that defines management’s roles in continuously

encouraging and implementing small improvements involving everyone.

It focuses on simplification by breaking down complex progress into their sub – processes and then

improving them.

2.35 KAIZEN WHEEL

The Kaizen improvement focuses on the use of :

 Value – added and non – value work activities.

 Muda, which refers to the seven classes of waste – over-production, delay, transportation,

processing, inventory, wasted motion, and defective parts.

 Principles of motion study and the use of cell technology.

 Principles of materials handling and use of one – piece flow.

 Documentation of standard operating procedures.

 The five S’s for workplace organization.

 Visual management.

 Just – in – time principles.

 Poka – Yoke.
 Team dynamics.