LO3 Presented By:

ABILITY TO MONITOR APPROPRIATE Mohamed Majid

SYSTEMS TO IMPROVE ORGANIZATIONAL Maldives Business School,
Malé, Maldives.
PERFORMANCE
 Part A: Manage and monitor quality
standards
LO3: Ability to monitor ❑ Quality Standards
appropriate systems ❑ Total Quality Management (TQM)
❑ Quality Circles
to improve
organizational Part B: Quality Culture
performance ❑ Importance of Quality Culture
❑ Monitoring & Development of Process
Manage and Monitor Quality Standards
 What does
‘Quality’
mean to you?
Definitions of Quality
▪ The “totality of features and characteristics of
a product or service which bears on its ability
to meet stated or implied needs” (Ken Holmes,
1992)
▪ A degree of excellence (Oxford Dictionary)
▪ Fitness for purpose (Juran)
▪ Meet the expectations of the customer
(Feigenbaum)
QUALITY ASPECTS

Quality of Quality of
Quality of design
conformance Availability

Quality of Safety Quality of Field use

 DIMENSIONS OF QUALITY

Conformance to Fitness for use Value for price paid Support services Psychological criteria
specifications •Evaluates how well the •Product or service •The support provided •focuses on judgmental
•How well a product or product performs for usefulness for the after the product or evaluations of what
service meets the its intended use. price paid. service is purchased. constitutes product or
targets and tolerances service excellence
determined by its
designers.
QUALITY IS ATTAINED
Product design
• Assess customer needs
• Design a product to meet those needs at the least cost
• Involve customers, suppliers and manufacturing personnel
• Set product specifications

Process Design
• Design process to meet final product design specification
• Design process while product is being designed
• Set process limits

Process control
• Ensure that the process actually produces specified product
• Keep the process in control
• Keep the process within limits
QUALITY PERSPECTIVE

For the customer

Quality For the producer

View
Point
 WHAT WILL BE DECIDING FACTOR?
Price Quality Service Design Brand
A new mobile phone ?
A pair of jeans ?
A meal in a restaurant ?
A flight to see a friend abroad ?
A new computer ?
Buying online ?
Quality Standards
▪ Detail of the requirements, specifications, the
various guidelines and characteristics to be
able to meet its quality by the product in order
to meet the purpose of the product, process
or the service
PARAMETERS OF QUALITY STANDARDS (SERVICE)
• How long must a • Will a package be • Are all items in the • Do front-line
customer wait? delivered by 10:30 order included? employees greet each
the next morning? customer cheerfully?

Time Timelines Completeness Courtesy

• Are services delivered • Is the service easy to • Is the service • Can service personnel
in the same fashion obtain? performed right the react quickly and
for every customer? first time? resolve unexpected
problems?

Accessibility
Consistency and Accuracy Responsiveness
convenience
QUALITY STANDARDS (SERVICE INDUSTRY)
Design of service quality

• Creating a range of choice for the client.

• Designing the product which is easily accessible to consumer.

Time

• 80% of incoming calls should be answered within 15 seconds after the first ring.
• Customer should be addressed in 10 minutes.
• Order should be fulfilled in 30 minutes.

Consumer satisfaction

• Providing the consumer feel of being at home.

• Consumer should be welcomed with warmness and smile.
• Consumer safety should be the focal point of business.
PHILOSOPHIES OF QUALITY MANAGEMENT
TOTAL QUALITY
MANAGEMENT
(TQM)

QUALITY CIRCLES
Total Quality Management (TQM)
▪ Total Quality Management (TQM) as a
management approach of an organization is
centered on quality, based on the participation
of all its members and aiming at long-term
success (ISO 8402:1994)
▪ Integrated organizational effort designed to
improve quality at every level
▪ Achieved through customer satisfaction and
benefits to all members of organization and to
society
TQM PHILOSOPHY
The basic principles :-

• Satisfy the customer, satisfy the supplier, and continuously improve the business
processes.

Objective :- 'Do the right things, right the first time, every time.’

Principles of TQM:-

• Satisfy the customer

• Satisfy the supplier
• External Customer
• Internal Customer
• Continuous improvement
 IMPLICATIONS OF TQM
- TQM gives employees a say in the process and in getting them to suggest improvements

- TQM implies a greater discipline to the process of production and better coordination

- TQM requires to improve their output quality so that less effort is spent rectifying poor
input

- TQM requires both work standardization and employee commitment

MANAGING AND IMPROVING QUALITY
Set Standards Meet Standards Monitor the Quality
• The quality expected by the • Agree and document • Publish the quality being
customers procedures and methods to achieved
• The cost and benefits of meet the standards • Meet regularly with the staff
delivering different degrees of • Agree and document controls involved to discuss the quality
quality to ensure that the standards being achieved as well as the
• The impact of different degrees will be met weaknesses and priorities and
of quality on: • Agree and document agree specific issues and action
- customers and their needs responsibilities via job points
- contribution to departmental descriptions and terms of • Encourage ideas from the staff
objectives reference about improvements and
- employee attitude and • Plan and implement staff consider introducing short-term
motivation development to ensure they suggestion schemes
are familiar with the standards,
procedures, controls and their
responsibilities
TQM TOOLS
Cause-and-Effect
Diagrams Flowcharts
(Fishbone)

Control charts
Checklist
(SPO)

Scatter Diagrams Pareto Analysis

TQM FAILURE
▪ Allowing external forces and events to drive a
TQM initiative
▪ An overwhelming desire for quality awards and
certificates
▪ Organizing and perceiving TQM activities as
separate from day-to-day work responsibilities
▪ Treating TQM as an add-on with little attention
given to the required changes in organization and
culture
▪ Senior management underestimating the
Quality Circles
▪ A group of employees who perform similar duties
and meet at periodic intervals, often with
management, to discuss work-related issues and
to offer suggestions and ideas for improvements,
as in production methods or quality control.
OR
▪ A small, voluntary group of employees and their
supervisor(s), comprising a team of about 8 to 10
members from the same work area or department
group of staff that meets regularly to solve
problems relating to their job scope or workplace.
 KEY CHARACTERISITICS

Usually consisting of Members meet Members specially

Membership is
6-8 members, from regularly, ideally trained in problem
voluntary.
the same section once in a week. solving and analysis.

Circle works on a Management must Management must

regular basis to ensure that solutions give appropriate and
identify and solve are implemented proper recognition to
work. quickly. solution.
CONCEPTS OF QUALITY OF CIRCLES

Form of Human resource

Problem solving
participation development
technique
management technique
OBJECTIVES OF QUALITY CIRLCES
Development of Team Improved Organizational
Change in Attitude Self Development
Spirit Culture

• From "I don’t care" to • Bring out “hidden • Individual vs. team-- • Positive working
"I do care" . potential” of people "I could not do but environment
• Continuous • People get to learn we did it" • Total involvement of
improvement in additional skills. • Eliminate inter- people at all levels
quality of work life departmental • Higher motivational
through conflicts. level
humanization of • Participate in
work. management process
 BENEFITS OF QUALITY CIRLCES

Improved
quality leading Greater
Improved
to greater motivation of
productivity.
customer employees.
satisfaction.

Shop floor
understand and A spirit of
Training in
share seeking
areas outside
management/c improvements
quality circle.
ustomers is generated.
problems.
Quality Culture
What is
quality
culture?
Quality Culture
▪ Culture is manifested in collective behaviors
and is the set of shared beliefs, attitudes,
values, goals and practices that characterizes
an institution or organization
▪ An organizational value system that results in
an environment that is conducive to the
establishment and continual improvement of
Quality.
▪ A quality culture is one in which employees
“live” quality in all their actions. No defects
are passed to the next person.
MAINTAINING A QUALITY CULTURE
Establishing Quality Culture is a challenging undertaking for any
organization. It is even more challenging to maintain it over time.

In order to maintain Quality Culture, organizations must foster the

following behaviors:
• Maintain an awareness of Quality as a key cultural issue.
• Make sure that there is plenty of evidence of Management’s leadership.
• Empower Employees and encourage self-development and self-initiative.
• Recognize and reward the behaviors that tend to nurture and maintain Quality
Culture.
VALUES OF QUALITY CULTURE
We're all in this
Open, honest
together: company, No subordinates or
communication is
suppliers, superiors allowed.
vital.
customers.

Everyone has There are no

access to all the Focus on successes or
information they processes. failures, just
need. learning experience
MANAGING AND MONITORING QUALITY
Giving employees a say in the process and in getting them to
suggest improvements.
A greater discipline to the process of production and the
establishment of better linkages between the business
functions.
New relationships with suppliers, improve their output quality
so that less effort is spent rectifying poor input.

Work standardization and employee commitment.

CONTINUAL IMPROVEMENT CULTURE
Continual improvement:-
• Change focused on increasing the effectiveness and/or efficiency of an organization to fulfil its policy and
objectives.

Requires :-
• The commitment of the organization's leaders.
• Direct commitment and involvement of the leadership.

Focused:-
• Enhancing customer and stakeholder value.

Encourage people:-
• Share their knowledge and experience

One aspect of a TQM philosophy.

STEPS FOR CONTINUAL IMPROVEMENT
Produce improvement
plans which specify how Identify and overcome
Determine Current
and by whom the any resistance to the
performance
changes will be change
implemented

Establish a need to
improve and obtain Define and test solutions
commitment and define that will accomplish the Implement the change
the improvement improvement objective
objective

Carry out research and Put in place controls to

Organize the diagnostic analysis to discover the hold new levels of
resources cause of current performance and repeat
performance step one
EFFECTIVENESS OF QUALITY CULTURE
Monitoring of the process
• Keep the process under control.
• Make sure all standards are followed.
• No disruptions.
• Damage/wastage reduction.
• Identifying loopholes or weaknesses.

Development of the process

• Continuous improvement.
• Setting higher benchmarks.
• Striving for excellence
• Willingness to challenge status quo.
• Removing blockage/shortcomings.
• Increasing efficiency and effectiveness.
Thank you
QUESTIONS?