Module II

MANAGING AND ORGANIZATION FOR QUALITY

Quality policy
“Quality Policy is a mirror, which shows the structure of QMS, which drives implementation. It
monitors effectiveness, it guides working, it allows perceptions, it thinks future, over all quality policy
is management's commitment towards QMS.”

“Quality policy is the top management's expression of its intentions, direction, and aims regarding
quality of its products and processes.”

Quality Policy is a written statement coined by the top management of an organisation with regard to
manufacture or supply of quality product/service that meet the customer's expectations.

The written quality policy is very much helpful to demonstrate that its internal quality controls are
effective and to assure the stakeholders regarding the management of quality.

The written quality policy assures all the stakeholders that the organisation can product and deliver
the desired quality product or services with standard specifications on time and within budget.

In quality management system, a quality policy is a document designed by top management, senior
managers and quality experts to express the quality statement of the organization. It clearly depicts the
acceptable level of quality and the duties of specific departments to ensure consistency of quality
production and delivery. Quality policy management is a long term strategic issue. The quality policy
is thus a commitment from the top management to ensure compliance with the Quality Management
System, and to ensure regularity in customer satisfaction.

ISO 9001 requires the organisation to define and document the Quality Policy and Quality Objectives
for quality and commitment to quality. These must be relevant to the organizational goals and
customer expectations.

It is a brief statement or 6 document that defines the quality goals and objectives, a commitment to
meeting them as well as continuous improvement. It should provide an outline for creating, stating,
and measuring your performance of the quality objectives. The ISO standard requires a written, well
defined quality policy that is communicated and understood within an organization.

Quality objectives
Quality objectives are measurable steps towards achieving the organisational quality policy. Quality
objectives state the answer of what to do to meet the goals fixed in the quality policy? These can be
the best way to spotlight the key elements of the quality policy. The quality objectives can be to
improve on-time deliveries, reduction in internal scrap, lower down the defects in production, cost
reduction through elimination of wastes by 90-95 percent within one year, etc. The objectives must be
controlled by considering them as the part of a procedure and making them part of the quality manual.
The quality policy is created with the customer requirements/needs in mind, then quality objectives
are linked back to the customer requirements/needs through the quality policy. These quality
objectives would then be communicated to each level of the organization. The quality objectives
should be designed to be specific, measurable, achievable, realistic and time-based.

 Decrease of mistakes in all operating areas,

 Early mistake recognition,
 Mistake prevention as a preventive step,
 Avoidance of wastes,
 Reduction of the lead times,
 Increase of the flexibility and profitability,
 Better capture and conversion of the customer's needs,
 Contented position of the customers.

Leadership for Quality

Leadership is the quality to lead others to accomplish the set goals of organization and who occupies
the quality, is leader. Hersey and Blanchard (1988) felt three basic competencies
necessary for leader:
a. Ability to to interaction and understanding the situation
b. Adapting the ability to change behaviour and resources in the light of situation
c. Ability to communicate with other member of the organization to get acceptance and
understanding.
In the four framework approach, Bolman and Deal (1991) suggested that leader display leather ship
behaviour in one of the four types of framework: Structural, Human Resource,
Political or symbolic. This model suggested that leader can be put into one of these four categories
and there are times when one approach is appropriate and time when it would
not be. Plunketted said that leadership is the ability to get work done with and through others while
winning their respect, confidence, loyality and willing cooperation. These definitions clear that
leadership believes in togetherness.

Characteristics of Quality Leaders

The characteristics that successful quality leaders are:-

1. They give priority attention to external and internal Customers and their needs. Leaders place
themselves in the customers’ shoes and service their needs from that perspective. They continually
evaluate the customers’ changing requirements.
2. They empower, rather than control, subordinates. Leaders have trust and confidence in the
performance of their subordinates. They provide the resources, training, and work environment to
help subordinates do their jobs. However, the decision to accept responsibility lies with the individual.
3. They emphasize improvement rather than maintenance. Leaders use the phrase “if it isn’t perfect,
improve it” rather than “if it ain’t broke, don’t fix it.” There is always room for improvement, even if
the improvement is small. Major breakthroughs sometimes happen, but it’s the little ones that keep the
continuous process improvement on a positive track.
4. They emphasize prevention. “An ounce of prevention is worth a pound of cure” is certainly true. It is
also true that perfection can the enemy of creativity. We can’t always wait until we have created the
perfect process or product. There must be a balance between preventing problems and developing
better, but not perfect, processes.
5. They encourage collaboration rather than competition. When functional areas, departments, or work
groups are in competition, they may find subtle ways of working against each other or withholding
information. Instead, there must be collaboration among and within units.
6. They train and coach, rather than direct and supervise. Leaders know that the development of the
human resource is a necessity. As coaches, they help their subordinates learn to do a better job.
7. They learn from problems. When a problem exists, it is treated as an opportunity rather than
something to be minimized or covered up. “What caused it?” and “How can we prevent it in the
future?” are the questions quality leaders ask.
8. They continually try to improve communications. Leaders continually disseminate information about
the TQM effort. They make it evident that TQM is not just a slogan. Communication is two way–
ideas will be generated by people when leaders encourage them and act upon them. For example, on
the eve of Desert Storm, General Colin Powell solicited enlisted men and women for advice on
winning the war. Communication is the glue that holds a TQM organization together.
9. They continually demonstrate their commitment to quality. Leaders walk their talk– their actions,
rather than their words, communicate their level of commitment. They let the quality statements be
their decision-making guide.
10. They choose suppliers on the basis of quality, not price. Suppliers are encouraged to participate on
project teams and become involved. Leaders know that quality begins with quality materials and the
true measure is the life-cycle cost.

Leadership Roles and Responsibilities:

A team will definitely perform the best if it is guided by a good leader. Leadership is considered as
one of the most essential aspects of the corporate process. Here we are talking
about leadership in general terms, such as a team lead, a practice head, or anyone from the top
management of the organization. Every leader, depending on his position in the company hierarchy
has a set of business leadership roles and responsibilities. However, there are some very general
responsibilities that a leader has to consider. Few of such roles and responsibilities are providing
motivation to the employee, resolving conflicts and employment discrimination, and similar others.
Following is a general explanation of leadership roles and management functions practiced in the
corporate environment.
1. Leadership Development
2. Planning and Implementation
3. Employee and Process Assessment
4. Employee Motivation
5. Decision Making
6. Conflict Resolution
7. Problem solving
CUSTOMER SATISFACTION
• Customers are important asset to the organization, satisfied customers will buy more, and buy
more frequently, and pay their bill promptly.
• In a manufacturing and service organization, customer satisfaction is considered as a measure
of quality.TQM implies an organizational drive with meeting or exceeding customer needs.
• Understanding the customer's needs and expectations is essential to winning new business.
• To attain this level, the organization should examine their quality system to respond to their
ever changing customer's needs
Characteristics of customer satisfaction:-
1. It is far from simple.
2. It is not an objective statistic, but more of feeling and attitude.
3. Therefore like people's opinion and feeling, it is subjective by nature.
4. Because of this subjective nature, it is difficult to measure.
5. The measurement of customer satisfaction is not precise.
6. The customer satisfaction should not be viewed in vacuum, i.e., it should be compared with
the level of satisfaction they have with competitor's product are service.
CUSTOMER COMPLAINTS
• Unlike the customer's feedback the customer complaints are reactive, and they are important
in gaining data on customer perceptions.
 • A dissatisfied customer can easily become a lost customer because of their frustrations. This
customer dissatisfaction becomes a measure for organizational process improvement
measures.
• Every single complaint should be accepted, analyzed, and acted upon to again win over
customer's confidence. Since more than 50% of the dissatisfied customers will buy again if
they are complaint has been heard and resolved.
• By adopting a positive approach the complaints can be seen as an opportunity to obtain
information and provide a positive service to the customer.
Ways to get customer feedback or complaint
1. Comment Card
• A low cost method of obtaining feedback from customers involves a comment card, which
can be attached to the warranty card and included with the product at the time of purchase.
• The intent of this card is to get simple information such as name, address, age, occupation and
what influenced the customer’s decision to buy the product.
• Generally people respond only if something very good or very bad has happened
2. Customer Questionnaire
• A customer questionnaire is a popular tool for obtaining opinion and perceptions about an
organization and its products and services
• However they can be costly and time consuming.
• Surveys may be administered by mail or telephone.
• In the questionnaire the customer is asked to furnish answers relating to the quality of product
and services.
3. Focus Groups
• Customer focus groups are a popular way to get feedback, but they too can be very expensive.
• These groups are very effective for gathering information on customer expectations and
requirements.
• A group of customers is assembled in a meeting room to answer a series of questions.
• These carefully structured questions are asked by a skilled moderator
4. Toll-Free Telephone Numbers
• Toll-free telephone numbers are an effective technique for receiving complaint & feedback.
• Organizations can respond faster and more cheaply to the complaint.

CUSTOMER RETENTION
• Customer retention represents the activities that produce the necessary customer satisfaction
which in turn creates the customer loyalty.
 • Customer retention moves customer satisfaction to the next level by determining what is truly
important to the customers and making sure that the customer satisfaction system focuses
valuable resources on things that are important to the customer.
• One survey indicates, it requires five times of effort to win a new customer than retaining a
present customer. In this context customer retention is important for organizational success.

EMPLOYEE INVOLVEMENT
• Japanese management emphasizes the need to consider employee as a valuable resources
rather than treating them as a mere tools for production.
• Employee involvement is one approach to improve quality and productivity.
• It is not an replacement for management nor is it the final word in quality improvement, it
aims at better meeting of organizational goals at all levels.

MOTIVATION
 Knowledge of motivation helps us to understand the utilization of employee involvement to
achieve process improvement
 He found that people were motivated by the motivators (intrinsic factors) like recognition,
responsibility, achievement, advancement and the work itself.
 In addition he found that bad feelings were associated with preventable dissatisfiers or
hygiene factors (extrinsic factors) like low salary, minimal fringe benefits, poor working
conditions, ill-defined organizational policies and mediocre (ordinary) supervision.

TEAMS
• Teams are very effective in solving all quality and productivity problems.
• Team is defined as a group of people working together to achieve common objectives or
goals.
• Teamwork is the cumulative actions of the team during which each member of the team
subordinates his interests and opinions to fulfill the objectives or goals of the group
• Many heads are better than one, especially in meeting ever-changing customer needs.
• Each member of the team have special ability that can be used for the problem. Many
processes are so complex that one person cannot able solve completely.
• Based on the synergic effect, whole is greater than sum of its parts. Team work is better than
sum of its member contribution.
• Team builds a rapport with each other that allows everyone to do a better job
Types of teams
1. Process improvement teams
2. Cross-functional teams
 3. Natural work teams
4. Self-directed/ self managed teams
Characteristics of successful teams
• Sponsor
• Team charter
• Team competition
• Training
• Clear objectives
• Accountability
• Well-defined decision procedures
• Resources
• Trust
• Effective problem solving
• Open communication
• Appropriate leadership
• Balanced participation
• Cohesiveness.
RECOGNITION AND REWARD
• Recognition is a form of employee motivation in which the organization publicly
acknowledges the positive contributions an individual has made to the success of the
organization.
• This acknowledgement is delivered using verbal and written praise and may include symbolic
items such as certificates and plaques.
Reward is something tangible such as theater tickets, dinner for two, or a cash award to
promote desirable behaviour.
Recognition and reward go together to form a system for letting people know they are valuable
members of the organization
• People like to be recognized, either as a team or individually.
• A persons feeling of achievement, value to the organization, knowing the organization cares
and having peer recognition may be more important than any reward.
Recognition Includes
• Pictures on the bulletin board
• Articles in newsletters or newspapers
• Letters to families
• Passing along compliments from others
• Personal phone calls or notes
• Placing positive notes in folders
 • Increased responsibility
Rewards
 Individual Rewards
• Dinner out
• Gift certificates
• Gift to charity in the name of the recipient
• Trips
• Event tickets
CONTINUOUS PROCESS IMPROVEMENT
• The concept was first given by Deming and later it was developed by Shewhart.
• It is also known as Deming cycle or PDCA cycle.

CROSS-FUNCTIONAL TEAM

• A cross-functional team is a group of people with different functional expertise working

toward a common goal.

• It may include people from finance, marketing, operations, and human resources
departments. Typically, it includes employees from all levels of an organization. Members
 may also come from outside an organization (in particular, from suppliers, key customers, or
consultants).

• Cross-functional teams often function as self-directed teams assigned to a specific task which
calls for the input and expertise of numerous departments

• Cross-functional teams are similar to conventional work teams, but they differ in several
important ways.
• First, they are usually composed of members who have competing loyalties and obligations to
their primary subunit within the company (for example, a marketing person serving on a
cross-functional team has strong ties to his or her home department that may conflict with the
role he or she is being asked to play on the CFT).
• Second, in companies where CFTs are being used on a part-time basis as opposed to a
permanent organizational structure, they are often temporary groups organized for one
important purpose, which means group members are often under considerable pressure.
For cross-functional teams to succeed, several factors have been identified that are imperative
• Team members must be open-minded and highly motivated.
• Team members must come from the correct functional areas.
• A strong team leader with excellent communication skills and a position of authority is
needed.
• The team must have both the authority and the accountability to accomplish the mission it has
been given.
• Management must provide adequate resources and support for the team, both moral and
financial.
• Adequate communications must exist.
SUPPLIER PARTNERSHIP

• Both the customer and the supplier are fully responsible for the control of quality.

• Both the customer and the supplier should be independent of each other and respect each
other’s independence.

• The customer is responsible for providing the supplier with clear and sufficient requirements,
so that the supplier can know precisely what to produce

• Both the customer and the supplier should enter in to a non-adversarial contract with respect
to quality, quantity, price, delivery method and terms of payments.

• The supplier is responsible for providing the quality that will satisfy the customer and
submitting necessary data upon the customer’s request.

• Both the customer and the supplier should decide the method to evaluate the quality of
product or service to the satisfaction of both parties.
 • Both the customer and the supplier should establish in the contract the method by which they
can reach an amicable settlement of any disputes that may arise.

Supplier Selection is based on

• Management philosophy of the organization

• Stable management of the supplier

• High technical standards with future technological innovations

• Raw materials and parts required by the purchaser meet the quality specifications

• Price is right and the delivery dates can be met

• Supplier has an effective quality system

• When supplier has a track record of customer satisfaction and organization credibility

• Example: General Motors uses the traffic light to rate their suppliers

• Red- Problem

• Yellow- Potential Problem

• Green - Ok