 Leadership  Continuous process

 Quality Statement improvement

 Strategic Quality  PDCA Cycle
planning  5S
 Quality councils
 Kaizen
 Employee involvement
 Supplier partnership
 Motivation
 Empowerment  Partnering

 Team and Teamwork  Supplier Selection

 Recognition and  Supplier Rating
reward
 Performance appraisal
The important underlying principles of TQM are as
follows.
1. Customers requirements must be met the first time,
every time.
2. There must be agreed requirement, for both internal
and external customers.
3. Everybody must be involved, from all level and
across all functions.
4. Regular communication (both formally and
informally) with staff at all levels is must. Two way
communication at all levels must be promoted
5. Identifying training needs and relating then with
individual capabilities and requirement is must.
6. Top Management’s participation and commitment is
must.
7. A culture of continuous improvement must be
established.
8. Emphasis should be placed on purchasing and
supplier management.
9. Every job must add value.
10. Quality improvement must eliminate wastes and
reduce total cost.
11. There must be a focus on the prevention of
problems.
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 vision 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 goal. Leader triggers the will to
do, show the direction and guide the group members
towards the accomplishment of the company goal.
1. The Customers first:
Quality leaders give primary importance to both
internal and external customers and their needs. Leaders
should listen to customers, actively seek their opinion on
the value of the products/services; develop a close link
with customers; seek joint improvement activity; and lead
the handling of complaints.
2. Value people:
Quality leaders take care of the development of
people’s shill and capabilities. They enable people to be
responsible for the result of their work. They monitor,
appraise and recognize people’s performance.
 Quality statement are established by a
quality council to provide overall direction for
achieving the total quality culture.
Three elements of quality statements are:
1. Vision statement,
2. Mission statement, and
3. Quality policy statement.
The following definitions should be understood
before we study about quality statements.
The following definitions about quality statements.
1.Vision :
Vision is a desired future state of the
organization.
> Imagination and inspiration are important
component of a vision.
>Typically, a vision can be viewed as the
ultimate goal of the organization, one that may take 5
or even 10 years to achieve.
2.Mission:
Mission is the purpose or reason for the
organization's existence i.e., what we do and whom
we serve.
3.Strategies:
Strategies are means to achieve the vision.
Strategies define the key success factors such as
prices, value, technology, market share and culture that
the organization must purse.
4.Goals:
Goal are referred as “long term” (2 to 3 years) and
“short term”(1 to 2 years).
Achievement of goals signals the successful
execution of a strategy.
5.Values:
Value are what the organization stands for and
believes in.
3.Policies:
>Policies are a guide to managerial action.
>An organization may have policies in a number
of areas: quality, environment, safety, human
resources, etc.
>These policies guide day-to-day decision
making.

Vision : Desired future state of organization

Mission : What business we are in.
Policy : Commitment to customer.
Vision statement:
 The vision statement is a short declaration of what on
organization aspires to be tomorrow.
 It is the ideal state that might never be reached; nut on which
one will work hard continuously to achieve. Successful vision
provide a brief guideline for decision making.
 Vision statement should define the benefits a customer, an
employee, a shareholder, or society at large can expect from
the organization.
 The vision statement should be coined in such a way that the
leader and the employees working in the organization should
work towards the achievements of the vision statement.
 Successful visions are timeless, inspirational, and become
deeply shared within the organization, such as:
 IBM’s Service
 Apple’s Computing for the masses
 Disney theme park’s the happiest place on the earth
Mission statement:
The mission statement, is usually one paragraph,
describes the function of the organization. It is designed to
address the question, what business(es) are we in?
 A Mission statement should clarify the organization's
purpose or reason for existence.
 A mission statement answers the following questions: who
we are? ; who are the customers?; what we do?; and how we
do it?.
An example of mission statement is:
 “we exist to create, make, and market useful products and
services to satisfy the needs of our customers throughout
the world” -Texas Instruments.
 Together, a vision and mission statements provide a common
agreed-upon direction for the entire organization. This
direction can be used a basis for daily decision making.
Quality policy statement.
The quality policy is a guide for everyone in the
organization as to how they provide products and service
to the customers.
 It is used a guide to managerial action.
 It should be written by the CEO with feedback from the
workforce and be approved by the quality council.
Examples of quality policy statement :
 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. -Xerox Corporation
 A quality policy is a important requirement of ISO 9000
quality systems, ISO 9000, the international standard for
quality assurance, requires a quality policy as a declaration of
intent to meet needs of customers.
 Strategic quality planning is a systematic
approach to quality assurance and improvement plans
at the top levels of an organization and linking them
with business strategy.
In the past, strategic quality planning was viewed
as a separate and distinct activity from strategic
business planning, as quality planning traditionally
took place at low levels of the organization.
As customer-driven quality and operational
performance excellence have become key business
drivers, quality improvement objectives such as
increasing customer satisfaction, reducing defects, and
reducing cycle times began to receive as much
attention as financial and market objectives.
 Strategicplanning sets the long-term
direction of the organisation in which it
wants to proceed in future
 The process of deciding on objectives of the
organisation, on changes on these objective,
on the resource used to attain these
objectives that are to govern the acquisition,
use and disposition of these resources.
present Strategic planning Vision of future
 1. Identification of customer needs
 2. Determination of customer positioning
 3. Predict the future
 4. Gap analysis
 5. Closing the gap
 6. Align the plan with the mission and vision
 7. Implementation of the plan
Customer needs Customer positioning Predict
the future Gap analysis Closing gap
Alignment Implementation Reevaluate and
review
 Goals:
goals are attempts to improve organisation’s
performance by making mission statements concrete.
•The goals could be,
• Improving customer satisfaction target
•Cost reduction targets in a year
• Improving shareholder’s value
• Improving market share
 Objectives
Objectives represent the operational definition of
goals
 Plans:
Typically describe specific tactics, assign
responsibilities, identify how sources can be allotted,
schedule activities and efforts and specify vision targets
 Strategic planning Traditional planning
 Focus on customers  Focus is not defined or
 Focus on process spread among many
considerations
 Improvement activities
are focused on activities  Focus on products
critical to success.  Improvement activities
 Goals and objectives are lack focus
process or results  Goals and objectives are
oriented results oriented
 Leaders determine  Leaders lack
critical success factors understanding of factors
critical to success
What is Quality Council?
A quality council is a team to provide overall direction for
achieving the total quality culture.
The quality council is composed of:
(i) the chief executive officer (CEO)
(ii) the senior managers of the functional areas, such
as design , marketing, finance, production, and quality: and
(iii) a co-ordination or consultant.
Duties of the Quality Council
The duties of the quality council are:
1. To establish the core values and quality statements.
Quality statements include vision statement, mission
statement, and quality policy statement.
Duties of the Quality Council
The duties of the quality council are:
1. To establish the core values and quality statements. Quality
statements include vision statement, mission statement, and
quality policy statement.
2. To establish the strategic long –term plan with goal and the
and the annual quality improvement program with
objectives.
3. To plan the training and education programmes.
4. To determine and monitor the cost of poor quality
5. To perform and monitor the performance measures for each
functional areas of the organization.
6. To establish multifunctional project and departmental teams
and monitor their progress.
7. To establish/revise the recognition and reward system
periodically.
Responsibilities of the Quality Council Coordinator
The responsibilities of the quality control coordinator are:
i. To develop two-way trust.
ii. To propose team requirements to the council;
iii. To share council expectations with the team;
iv. To empower the team; and
v. To brief the council on team progress.
Thus quality council are the instruments for
creating the idea of never- ending quality
improvement. In other words, it is the driver for the
TQM engine.
QUALITY STRUCTURE
Quality structure involving different level of cross-
functional participation by managers.
Introduction
Employee involvement is the backbone of a TQM
movement. An effective TQM effort requires the total
involvement from every person at all levels in the
organization. Employee involvement leads to meet the
organization goals and objectives. It also improves the
quality and productivity at all levels of the organization.
Some of the important aspects of employee
involvement are.
1. Employee motivation,
2. Employee empowerment
3. Recognition and reward scheme,
4. Team and teamwork, and
5. Performance appraisal.
Concept of motivation
Scott defines,
“Motivation means a process of stimulating people to
accomplish desire goals.”
Edward B.Flippo defines,
“Motivation is the process of attempting to influence others
to do your will through the possibility of reward.”

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.
1. Motivation improves employee involvement.
2. Motivation promotes job satisfaction and thus
reduces absenteeism and turnover.
3. Motivation helps in securing a high level of
performance and hence enhances efficiency and
productivity.
4. Motivation creates a congenial working
atmosphere in the organization and thus promotes
interpersonal cooperation.
 Though there are many theories of motivation,
 The Maslows’s hierarchy of needs theory and
 Herzberg’s two factor theory are more important from our
subject of view.
1. MASLOW'S HIERARCHY OF NEEDS:
According to Maslow, human motivation is a hierarchy
of five needs. The five basic needs are
(i) Physiological;
(ii) Safety;
(iii) Social
(iv) Esteem; and
(iv) Self- actualization.
 Maslow's hierarchy of needs is a motivational theory in
psychology comprising a five-tier model of human needs,
often depicted as hierarchical levels within a pyramid.
 From the bottom of the hierarchy upwards, the needs are:
physiological (food and clothing), safety (job security),
love and belonging needs (friendship), esteem, and self-
actualization.
 Needs lower down in the hierarchy must be satisfied
before individuals can attend to needs higher up.
The original hierarchy of needs five-stage model includes:
 Maslow (1943, 1954) stated that people are motivated to
achieve certain needs and that some needs take precedence
over others.
 Our most basic need is for physical survival, and this will be
the first thing that motivates our behaviour. Once that level
is fulfilled the next level up is what motivates us, and so on.
1. Physiological needs - these are biological requirements for
human survival, e.g. air, food, drink, shelter, clothing,
warmth, sleep.
If these needs are not satisfied the human body cannot
function optimally. Maslow considered physiological needs
the most important as all the other needs become secondary
until these needs are met.
2. Safety needs - once an individual’s physiological needs
are satisfied, the needs for security and safety become
salient. People want to experience order, predictability
and control in their lives. These needs can be fulfilled by
the family and society (e.g. police, schools, business and
medical care).
For example, emotional security, financial security
(e.g. employment, social welfare), law and order,
freedom from fear, social stability, property, health and
wellbeing (e.g. safety against accidents and injury).
3. Love and belongingness needs - after physiological
and safety needs have been fulfilled, the third level of
human needs is social and involves feelings of
belongingness. Belongingness, refers to a human
emotional need for interpersonal relationships,
affiliating, connectedness, and being part of a group.
4. Esteem needs are the fourth level in Maslow’s hierarchy and
include self-worth, accomplishment and respect. Maslow
classified esteem needs into two categories: (i) esteem for
oneself (dignity, achievement, mastery, independence) and
(ii) the desire for reputation or respect from others (e.g.,
status, prestige).
Maslow indicated that the need for respect or reputation
is most important for children and adolescents and precedes
real self-esteem or dignity.
5. Self-actualization needs are the highest level in Maslow's
hierarchy, and refer to the realization of a person's potential,
self-fullfillment, seeking personal growth and peak
experiences. Maslow (1943) describes this level as the desire
to accomplish everything that one can, to become the most
that one can be.
 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 dissatisfies. Various motivation and hygiene
factors are listed below in table.
MOTIVATION FACTORS HYGIENE FACTORS
Achievement Supervisors
Recognition Working Conditions
The Work itself Interpersonal relationships
Responsibility Pay and security
Advancement and growth Company policy and
administration.

Motivation and Hygiene factors.

 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 employee 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 of presence but
their absence does not cause dissatisfaction.
It can be noted that Herzberg’s dissatisfiers are
roughly equivalent to Maslow’s lower levels, and the
motivators are similar to the Maslow’s upper levels.
Thus the knowledge of motivation is required for
any organization to understand the utilization of
employee involvement.
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 organizational climate, that can either
encourage dependency of foster autonomy.
Empowerment Defines
According to Webster’s Dictionary, the verb empower
means ‘to give the means, ability or authority’. Therefore
empowerment in work setting involves giving people that means,
ability and authority to do something they have not done before.
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 Job empowerment focuses on expanding on
the context of the job such as its interactions and
interdependencies to other functions of the organization.
General Principles for Empowerment
The following general Principles may be used to empower the
employees:
1. Tell people what their responsibilities are,

2. Give them authority equal to the responsibility assigned to

them
3. Set standards of excellence.

4. Provide then with training that will enable then to maintain

standards
5. Give then knowledge and information.

6. Provide them and create trust worthiness in the organization.

7. Trust them and create trust worthiness in the organization.

8. Allow them to fail but guide them and counsel them when
needed.
9. Treat them with dignity and respect.
CONDITION TO CREATE THE EMPOWERED
ENVIRONMENT.
The three conditions required to create the empowered
environment are:
1. Everyone must understand the need for change
2. The system needs to change to the new paradigm
3. The organization must provide information, education, and
skill to its employees.
CHARACTERISTICS OF EMPOWERED EMPLOYEES.
Some important characteristics of empowered employees,
identified by Hubert Rampersad, are that :
 They feel responsible for their own task.
 They are given a free hand in their work.
 They balance their own goals with these of the organisation.
 They are well trained, equipped, creative and customer
oriented.
 They are critical, have self-esteem, and motivated.
 TEAM AND TEAMWORK
Definition:
A team is defined as a group of people of working
together to achieve common objectives or goal.
Teamwork is the cumulative action of the team during
which each member of the team subordinates his individual
interest and opinions to fulfill the objectives or goals of the
group.
Why Team work?
Team work because many heads are more knowledgeable
than one. Each member of the team has special abilities that
can be used to solve problems. The interaction within the
team produces results that exceed the contributions of each
member. Third, team member develop a rapport with each
other allows them do better job. Finally, teams provide the
vehicle for improved communication, thereby increasing the
likelihood of a successful solution.
TYPES OF TEAMS
The four common team types are:
1. Functional/Process improvement team,

2. Cross-Functional team,

3. Virtual team, and

4. Self-directed/ self-managed work teams.

1.FUNCTIONAL/PROCESS IMPROVEMENT TEAM:

The member of a process improvement team represent
each operation of the process or sub-process. The team
something that is related to a function. For example, you
have the design function, purchasing function, etc. People
from these groups when they work together form a
functional team.
1.FUNCTIONAL/PROCESS IMPROVEMENT TEAM: (contiu….)

Functional teams are permanent and

include members of the same department with
different responsibilities. A manager is responsible for
everything and everyone reports to them. This is the
typical top-down management approach that you’ll
see in most organisations. Across all organisational
teams, it’s important to prioritise workplace culture;
the foundations of which are communication and trust.
2.CROSS-FUNCTIONAL TEAM:
Cross-functional teams are made up of individuals from
various departments. These teams tackle specific tasks that
require different inputs and expertise. This can happen when
various teams need to work on a project together to get the
best outcome. This can be a difficult dynamic to navigate if
teams have been operating in a ‘silo’ approach up until the
point of collaboration. It’s crucial that the different
personalities and perspectives are embraced, and that
everyone in the cross-functional team are working to their
strengths.
3. VIRTUAL TEAM:
Virtual teams are made up of individuals who work in
different physical locations and who use technology and
collaboration tools to achieve a common goal. With more
employees looking for work from home opportunities, virtual teams
will become much more common in the future of work. You may
even have a few remote team members in your organisation right
now who need to collaborate within a functional or cross-functional
team.
It’s important for virtual team members to be involved from a
cultural perspective within your organisation. Having face to
face video calls and giving your team members the opportunity to
connect on a personal relationship level will help to improve
rapport and moral. We’ve already shared a bunch of info
on creating a strong remote team culture so give that a look when
you have a moment.
4. SELF-DIRECTED/ SELF-MANAGED WORK TEAMS:
Generally, individuals in self-managed teams are employees of the
same organisation who work together. Even though they may have a
wide array of objectives, their aim is to reach a common goal. They
operate without managers and are relatively autonomous, sharing
responsibility and leadership. High-performing teams can often fall into
this category.
People working in start-ups or small businesses may also find
themselves in this type of team dynamic. It can be difficult for people
who have worked in other types of teams for most of their career to
adjust to this way of working, so there will likely be an adjustment
period of sorts. It’s crucial that self-managed teams know how to deliver
feedback and have tough conversations with tact. Without high levels of
communication, trust, autonomy and mutual respect, self-managed teams
will find it difficult to thrive.
 RECOGNITION AND REWARD
What is meant by Recognition?
Recognition is a process whereby management shows
acknowledgement of an employee's outstanding performance.
Recognition is a form of employee positive motivation.
Recognition of employee 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 acknowledge may be of financial, psychological or
both in nature. Reward is a tangible one, such as increased
salaries, commissions, cash bonus, gain sharing, etc., to
promote desirable behavior.
WHY SHOULD ONE RECOGNIZE THE EMPLOYEES?
The employees effort toward the improvement should be
recognized for many reasons. Recognition is essential to:
 Improve employees morale.

 Show the company’s appreciation for better performance.

 Create satisfied workplace.

 Create highly motivated workplace

 Reinforce behavioral patterns.

 Stimulate creative efforts.

Types of Rewards.
Broadly, one can classify the rewarding systems into two groups.
They are:
1.Intrinic rewards: The are related to feeling of accomplishment
or self-worth.
2.Extrinsic rewards: These are related to pay or compensation
issues.
 Richard S. Allen and Ralph H.Kilmann have tabulated the different intrinsic
and extrinsic rewards
Intrinsic Rewards Extrinsic Rewards
1. Non- monetary forms of 1. Profit sharing
recognition to acknowledge
2. Gain sharing
achievement of quality
improvement goals. 3. Employment security
2. Celebrations to acknowledge 4. Compensation time
achievement of quality 5. Individual based performance
improvement goals.
systems.
3. Regular expressions of
appreciation by managers and 6. Quality based performance
leaders to employee to appraisals.
acknowledge achievement of
quality improvement goals.
4. 360 performance appraisals-
feedback from co-workers(other
than the immediate
supervisor).etc
5. Formal suggestion system
available for individual to make
quality improvement suggestions.
 Ways to Recognize people

Steve Smith have identified twenty different ways to recognize the

employees. His 20 ways are listed below.

1. Send thank letter whenever possible

2. Develop behind the scenes award
3. Create the best ideas of the year booklet
4. Feature the quality team of the month and put their picture in prominent
place
5. Honour peers by recognizing them
6. Allow people to attend meetings in your name when you are not
available
7. Involve teams with external customers and suppliers by visiting them
8. Invite a team for coffee or lunch whenever possible
9. Create a visibility will displaying posters, pictures, to thank the
contributions of employee
10. Credit the team to higher authorities when their ideas are accepted
11. Take interest in employee‘s development
12. Get the team picture in company newspaper
13. Mention the ideas of others during your meetings, so that they
are recognized
14. Write a letter of praise to contributed team member and copy
to boss
15. Ask people to help you with the project which is difficult but
challenging
16. Send a team to special seminars, workshops to cover topics
they are really interested in
17. Ask your boss to send a letter of acknowledgement and thanks
18. Honour outstanding contribution with awards
19. Have a stock of small gifts to give to people on the spot whom
you catch doing things right
20. Promote or nominate for promotion, those people who
contribute most
 PERFORMANCE APPRAISAL.
It is a systematic and objective assessment or evaluation of
performance and contribution of individual
Needs Identifying employees for salary revision,
promotion, transfer, demotion, layoff .
 To determine training needs of employee

 To take organizational inventory of people

 To know personal strength and weakness of individuals

 To validate the selection procedure

APPRAISAL FORMATS
 Ranking (From highest to lowest),

 Narrative (Telling strength and weakness),

 Graphics (Graphical display of duties by rating),

 Forced choice (Placing each employee with a predetermined

% like Good 25%, Poor 10% etc)
 BENEFITS OF PERFORMANCE APPRAISAL

1. Provides a feedback to identify employees for salary revision,

transfer, lay-off
2. Helps in determining training needs of employee
3. Provides organization inventory of people
4. Helps to evaluate personal strength and weakness of
individuals
5. To validate the selection procedure.
6. Provide the basis for promotion, demotion etc
7. May provide some information on external factors like family
circumstances, health, financial or personal matters that may
be affecting the performance
CONTINUOUS PROCESS IMPROVEMENT (CPI)
TQM has been defined as a philosophy based on
quest for progress and continual improvement in the
areas of cost, reliability, quality, innovation,
efficiency and business effectiveness
It is a continuous learning process which never
stops and is cyclic and iterative
To do CPI, we have different approaches such as
Juran Trilogy, PDSA cycle, Kaizen and 5S concept
 INPUT / OUTPUT PROCESS MODEL
The process refers to business and production activities of an
organization. Example Purchasing, Engineering, Marketing and
Accounting.
 PDCA/PDSA CYCLE
It is also called as Deming Cycle or Deming Wheel. Developed
by Walter A. Shewart and popularized by Edward Deming
PLAN
• Identify the problem, plan and opportunities
• Observe and analyze
• Isolate the real causes
• Determine corrective actions
DO
• Prepare
• Apply
• Check application
STUDY / CHECK
• Check results
• Compare with goals
ACT
• Standardize and consolidate
• Prepare next stage of planning
 BENEFITS OF PDSA CYCLE
• Daily routine management for the individual and or
the team
• Problem solving process
• Project management
• Continuous development
• Vendor development
• Human resource management
• New product development
• Process trials
 5S
What is 5S?
The 5S practice is a house keeping techniques used to establish
and maintain a productive and quality environment in an
organisation.
5S was invented in Japan. It Stands for five Japanese words that
start with the letter “s” :
1. SEIRI

2. SEITON

3. SEISO

4. SEIKETSU

5. SHITSUKE
Japanese Translated English Definition
Seiri Tidiness sort Eliminate whatever is
not needed by
separating needed
tools, parts, and
instructions from
unneeded materials.

Seiton Orderliness set in order Organize whatever

remains by neatly
arranging and
identifying parts and
tools for ease of use.

Seiso Cleanliness shine Clean the work area

by conducting a
cleanup campaign.

Seiketsu Standardize Standardize Schedule regular

cleaning and
maintenance by
conducting seiri, seito
n, and seiso daily.

Shitsuke Discipline Sustain Make 5S a way of life

by forming the habit
of always following
the first four S’s.
Objective of ‘5S’
The objectives of ‘5S’ are:
1. To create a neat and clean work place.

2. To systemise day to day working.

3. To improve work efficiency.

4. To standardize work practices

5. To improve work discipline.

6. To improve the quality of work and product.

The First S : SEIRI : CLEARING
Factory Floor Office Home
Machines to be Used / Broken Broken toys
scrapped pens
Rejected material Useless paper Old clothes
Expired goods Old diaries Broken suitcases
Broken tools, Broken furniture’s
pallets, bins,
trolleys.
Old notices
Factors in implanting 5S
The following factors are required for any organization to
implement 5S concept successfully.
1. Participation by all: 5S programme should be understood and
practiced by all employees. Linkage with productivity, quality
cost, delivery, safety and customer satisfaction should be clear
to everyone.
2. Top management commitment: The CEO along with seminar
management team needs personally committed practice and
supervise the programme. Without their deep commitment 5S
can be successful.
3. Should be self sustaining: Banners, slogan posters and new
tutors should be fully utilized to draw attention of everyone in
the company. Basic in-house training and introduction to model
companies would provide them the necessary skill.
4. Review the programme: Every month, a group of people
selected from different areas of responsibility should tour the
plant, evaluate each zone according to certain criteria of house
keeping principles.
BENEFITS IN IMPLEMENTING 5S
The benefits in implementing 5s are as follows.
1. Work place becomes clean and better organized. It becomes
proud place to work.
2. Result in good company image and generates more business.

3. Shop floor and office operation becomes easier and safer.

4. People become disciplined.

5. Contribute to productivity, quality and employee moral.

6. Better quality awareness.

7. More usable floor space.

8. Lesser time wasted in material handling.

9. Lower cost of production

10. Better preventive maintenance.
11. High employee involvement.
12. Lesser accidents.
13. More time for improvement activities.
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.
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, 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.
 A commitment to continuous quality improvement cannot
be translated into reality without treating supplier as partner
PRINCIPLES OF CUSTOMER / SUPPLIER RELATION
• Both the customer and the supplier are fully responsible for the
control 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 into an non
adversarial contract with respect to quality, quality, 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
What is Supplier Partnering?
Partnering is a defined as a continuing relationship, between
a buying firm and supplying firm, involving a commitment over an
extended time period, an exchange of information, and
acknowledgement of the risks and rewards of the relationship. The
relationship between customer and supplier should be based upon trust,
dedication to common goals and objectives, and an understanding of
each party’s expectations and values.
Benefits of Partnering
The benefits of partnering include:
(i) Improved quality;
(ii) reduced cost;
(iii) Increased productivity;
(iv) Increased efficiency;
(v) Increased market share;
(vi) Increased opportunity for innovation; and
(vii) Continuous improvement of products / services.
 It is defined as a continuing relationship, between a buying firm and
supplying firm, involving a commitment over an extended time period, an
exchange of information, and acknowledgement of the risks end rewards of
the relationship.
JAPANES REVIEW OF PARTNERING
 The Japanese partnering concept is KELRESTU – developing long term
relationships with a few key suppliers rather than having short term
relationship with many suppliers.
Key elements to Partnering
 Long term Commitment :
Long-term commitment provides both customer and supplier the
much needed environment to achieve the planned objectives. Because to set
up and solve the problem of continuous improvement, both parties may
require the sufficient time.
 Trust :
Mutual trust between two parties forms the basis for a strong
working relationship. Trust enables the partners to effectively combine their
resources and knowledge. It results in a ‘win-win’ situation for both
partners
3. Shared vision : Both the customers and suppliers have the common goal
i.e., to satisfy the end user. In order to ensure this goal, both particles should
share and understand their goals and objectives.
Three types of supplier sourcing are:
 Sole sourcing;
 Multiple sourcing, and
 Single sourcing.
1. Sole Sourcing
 Sole sourcing is the use of only one supplier for the organization. The
organization does not have any choice. It is forced to use only one supplier.
 This forced situation is because of the following factors : patents, technical
specifications, raw material location, only one organization producing the
item, etc.
 2. Multiple Sourcing
 Multiple sourcing is the use of two or more suppliers for an item.
 The basic concept of multiple sourcing is that competition will result in better
quality, lower costs, and better service. (The selection of suppliers from
various alternatives is based on their performance in terms of prices, quality
and delivery.
3. Single Sourcing
 Single sourcing is the use of one supplier for an item when several
sources are available. It leads to long-term partnering relationship.
 The suppliers should be treated as partners to achieve the same quality
level as attained within the organization.
 The following forces need Supplier Partnership to improve quality,
reduce costs and increase market share.
 Deming Philosophy (Deming’s 4th point)
 Just-in-time
 Continuous process improvement
 ISO 9000
• 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 methods to evaluate
the quality of the 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
• Both the customer and the supplier should continually exchange
information, sometimes using multifunctional teams, in order to improve
the product or service quality
• Both the customer and the supplier should perform business activities
such as procurement, production and inventory planning, clerical work
and system so that an amicable and satisfactory relationship is
maintained
• When dealing with business transactions both the customer and the
supplier should always have the best interest of the end user in mind
 SUPPLIER SELECTION

The suppliers should be selected with the following ten conditions

1. The supplier should understand clearly the management philosophy of
the organization.
2. The supplier should have stable management system.
3. The supplier should maintain high technical standards. 4. The supplier
should provide the raw materials and parts which meet quality
specifications
required by the purchaser.
5. The supplier should have the required capability in terms of production.
6. The supplier should not leak out the corporate secrets.
7. The supplier should quote right price and should meet the delivery
schedule. The supplier
should be accessible with respect to transportation and communication.
8. The supplier should be sincere in implementing the contract provisions.
9. The supplier should have an effective quality system such as ISO / QS
9000.
10. The supplier should be renowned for customer satisfaction.
 SUPPLIER SELECTION
Supplier selection is the process by which firms identify, evaluate,
and contract with suppliers. The supplier selection process deploys an
enormous amount of a firm’s financial resources and plays crucial role for
the success of any organization. The main objective of supplier selection
process is to reduce purchase risk, maximize overall value to the purchaser,
and develop closeness and long-term relationships between buyers and
suppliers.
The literature on supplier selection criteria and methods is full of various
analytical approaches. Some researchers have developed hybrid models by
combining more than one type of selection methods. The current paper
provides an overall picture of research on supply chain management,
supplier selection criteria and supplier selection evaluation methods (multi-
criteria decision making).
A summary of the process of supplier selection can be helpful for
companies to have a clear understanding of the concept in order to improve
their success and competitiveness. The results show that the application of
a structured decision-making technique is vital, especially under the
complex conditions that include both qualitative and quantitative criteria.
 A certified supplier is one which, after extensive
investigation, is found to supply material of such quality that is
not necessary to perform routine testing.
The Eight criteria for supplier certification are
1. No product related lot rejections for at least 1 year.
2. No non-product related rejections for at least 6 months.
3. No production related negative incidents for at least 6 months.
4. Should have passed a recent on-site quality system evaluation.
5. Having a fully agreed specifications.
6. Fully documented process and quality system.
7. Timely copies of inspection and test data.
8. Process that is stable and in control
 SUPPLIER RATING

Supplier Rating System enables companies to make

informed supply decisions that are optimal for the entire
business. These decisions can include identifying the best
supplier to select for a specific contract or determining
entirely new supply strategies, such as which product areas
would benefit from an expanded supplier base or
consolidation of existing suppliers.
Supplier Rating is done
 To obtain an overall rating of supplier performance.

 To communicate with suppliers regarding their performance.

 To provide each supplier with a detailed and true record of

problems for corrective action.
 To enhance the relationship between the buyer and the
supplier.
 For establishment of supplier relationship, the following are
necessary.
(a) Partnering
(b) Supplier selection
(c) Principles of customer / supplier relations
(d) Certification
(e) Periodic rating
For relationship development, the following are necessary.
(a) Inspection
 100% inspection
 Sampling
 Audit
 Identity check
 (b) Training
 (c) Teams
 (d) Recognition and Reward
Thank you….