Total Quality Management

Lecture 3 Quality Circles and Leadership and Quality Statements Bilal Ahmad Khan

Quality Circles
First type of team to focus specifically on quality Developed in Japan (1962) and introduced to the UK by Rolls-Royce at Derby. It involves: small groups (5-10 volunteers from a given section or department) regular short meetings identify and select problems propose solutions and monitor progress inclusive of operators, specialists, managers, etc

Implementing Quality Circles

The key stages of implementing quality circles are: i. establish steering committee

ii. select coordinators iii. select circle leader iv. select circle members v. train all members in problem-solving techniques vi. launch circle vii. monitor progress and provide support

Problem Solving Functions of Quality Circles

Problem solving techniques are taught to members of the circles Example: Toyota (1994) 50% of warranty losses due to 120 large problems and 4,000 small problems

ProblemSolving Function of Teams

Implem ent solution and monitor

Develop list of problem s

Pick proble m to tackle

Develop followup plan

Identif y Solve Analyz e

Collect Date

Pick best solution s Develop solution s

Focus attentio n

Find causes

Leadership

What is Leadership?
Leadership is the ability to positively influence people and systems under ones authority to have a meaningful impact and achieve important results

Leaders may seek to motivate employees and develop enthusiasm for quality.

Actions often speak louder than words

Definitions
1. One who instills purposes, not one who controls by brute force. 2. A leader strengthens and inspires the followers to accomplish shared goals. 3. Leaders shape, promote, protect and exemplify the organization values 4. Someone who can take a group of people to a place they dont think . 5. Leadership is we, not me; mission, not my show; vision, not division; and community, not domicile.

THINGS ARE MANAGED, PEOPLE ARE LED.

Leadership for Quality

Leadership is driver of entire quality system. Without leadership, a TQ initiative simply becomes flavor of the month, which is major reason that total quality efforts fail in many org.

Characteristics of Quality Leaders

1. Customer Focus - changing requirements 2. Empowerment - trust, confidence and provision of resources 3. Improvement - if it isnt perfect improve it 4. Prevention - An ounce of prevention is worth a pound of cure 5. Collaboration - rather than competition

6. Training and Coaching - rather than direct and supervise 7. Promote Lesson Learned - problem as an opportunity 8. Strong Communications - TQM is not just a slogan 9. Commitment to quality - actions, rather than their words 10. Efficient supplier selection - on the basis of quality not price 11. Establish Organizational Systems - Framework 12. Encourage and recognize team work - Appreciation and reward

Leadership Concepts
A leader understand that people; 1. Needs security and independence 2. External rewards and self-motivation 3. Like to hear a kind word of praise 4. Can only process only a few facts at a time 5. Trust their gut feeling than statistical data 6. Distrust if words are inconsistent with actions

The 7 Habits of Highly Effective People

Paradigm shift Change in Habit - Knowledge What to do and why - Skill how to do - Desire why to do P/PC Balance

Habit 1: Be Proactive - taking responsibility for your lire -Proactive behavior -reactive behavior Reactive Proactive
There's nothing I can do She makes me so mad I have to do that I can't I must Things are getting worse

values feelings

Let's look at our alternatives I control my own feelings I will choose an approporate response I choose I prefer What initiative can we use

Habit 2: Begin with the End in Mind All things are created twice first creationsecond creation -mental -physical

Personal philosophy Honesty Positive attitude Initiatives

Habit 3: Put First Things First Practicing self-management

Urgent

Time Management Matrix

NotUrgent

Import ant

I Crises, fire-fighting Pressing problems Deadline driven projects

II Prevention Relationship building Recognizing new opportunities Planning

III Not Interruptions, pressing matters Import Some mail, calls, reports ant Some meetings, proximate

IV Trivia, busy work Time wasters Pleasant activities

Habit 4: Think Win-Win Mutual benefit in all human interactions

Win-Win embraces five interdependent dimensions of life 1. Character 2. Relationship 3. Agreements 4. Systems 5. Processes In order to obtain Win-Win, a four step process is followed 1. See the problem from the other viewpoint 2. Identify the key issues and concerns 3. Determine acceptable results 4. Seek possible new options to achieve results

Habit 5: Seek First to Understand, Then to be Understood Understand - Empathic Listening Understood - Ethos Personal credibility - Pathos Empathy you have with others - Logos Logic or reasoning part of your presentation

Habit 6: Synergy The whole is greater than the parts Together we can accomplish more than any of us can accomplish alone Examples??

Habit 7: Sharpen the Saw (Renewal) Sharpen the saw so it will cut faster Reviewing the four dimensions of you nature 1. Physical 2. Spiritual 3. Mental 4. Social/Emotional

Difference between Leader and Manager

1. 2. 3. 4. The manager administers; the leader innovates. The manager is a copy; the leader is an original. The manager maintains; the leader develops. The manager focuses on systems and structure; the leader focuses on people. 5. The manager relies on control; the leader inspires trust. 6. The manager has a short-range view; the leader has a long-range perspective. 7. The manager asks how and when; the leader asks what and why. 8. The manager does things right; the leader does the right thing 9. The manager imitates; the leader originates. 10.The manager accepts the status quo; the leader challenges it.

Role of TQM Leaders

1. Provide Training
- Jack Welch (1980s), CEO of General Electric 2. Management by Wandering Around (MBWA) 3. Be Informed 4. Award and Recognition - Thank you for a job well done 8. Allocate Time 9. Listen to customers - Focus groups 12.Communication - Sell the Idea of TQM

Quality Council
- To build quality culture - Driver for the TQM engine - Framework

Senior Managers Functional Heads Quality Coordinator/Consultant

The duties of quality council are to; 1. Develop the core values, vision statement, mission statement, and quality policy statement. 2. Develop the strategic long-term plans with goals 3. Annual improvement programs with objectives 4. Create the total education and training plan 5. Determine and continually monitor the cost of poor quality 6. Determine the performance measures 7. Continuously determine the quality improvement projects 8. Establish and revise the recognition and reward system

Core Values, Concepts, and Framework

Unity of Purpose
Malcolm Baldrige National Quality Award 1. Visionary Leadership 2. Customer-Driven Excellence 3. Organizational and Personal Learning 4. Valuing Employees and Partners 5. Agility 6. Focus on the Future

7. Managing for Innovation 8. Management by Fact 9. Public Responsibility and Citizenship 10. Focus on Results and Creating Value 11. Systems Perspective - Synthesis - Alignment

Quality Statements
Vision Statement What an organization aspires to be tomorrow An Ideal state that might never be achieved but you continuously strive to achieve it Vision without Action is a Dream Action Without Vision is an Activity

A Good Vision
Serves three important purposes
1) Clarifying general direction for change/improvement

2) Motivates people to take action in right direction, even if initial steps are personally painful. 3) Helps coordinate action of different people, in a remarkably fast & efficient way.

Why Vision is Essential

- Vision refers to a picture of future with some implicit or explicit commentary on why leadership should strive to create that future. - Articulates basic characteristics that shape organizations strategy.

Mission Statement
A mission statement is a statement of the purpose of a company and organization Who we are Who are the customers What we do How we do it

Ford Motor Company

Ford Motor Company is a worldwide leader in automatic and automotive-related products and services as well as the newer industries such as aerospace, communications, and financial service. Our mission is to improve continually our products and services to meet our customers needs. Allowing us to prosper as a business and to provide a reasonable return to our shareholders, the owners of our business.

Quality Policy Statement

Expresses the quality objective of the organization Quality is first among equals Meet the needs of internal and external customers Equal of exceed the competition Continually improve the quality Include business and production practices Utilize the entire work force A quality policy is a requirement of ISO 9000

Xerox Quality Policy

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.

Strategic Planning
Strategy - a pattern or plan that integrates an organizations major goals, policies, & action sequences into a cohesive whole In todays business environment, quality is a key element of strategic planning Strategic Quality Planning -- Systematic approach to setting quality goals has been viewed as inseparable from Strategic Business Planning (SBP).

Seven Steps of Strategic Planning

1. Customer Needs - current and future 2. Customer Positioning - retain, reduce or expand 3.Predict the Future - Demographics, technical assessment 5.Gap Analysis 6.Closing the Gap 7.Alignment 8.Implementation

Goals and Objectives

A goal or objective is a desired result a person or a system envisions, plans and commits to achieve Goal: for long-term planning Objectives: for short-term planning Provide a focus Based on statistical evidence Must have a plan or method SMART

Letter S M A R T E R

Major Minor Terms Term Specific Significant, Stretching, Simple Measurab Meaningful, Motivational, Manageable le Attainabl Appropriate, Achievable, Agreed, Assignable, e Actionable, Ambitious, Aligned, Aspirational Relevant Timebound Evaluate Realistic, Resourced, Resonant Time-oriented, Time framed, Timed, Timebased, Timeboxed, Timely, Time-Specific, Timetabled, Time limited, Trackable, Tangible

Ethical, Excitable, Enjoyable, Engaging, Ecological Reevaluat Rewarded, Reassess, Revisit, Recordable, e Rewarding, Reaching

Case Study of Xerox Business System

Discuss the concepts, core values and framework of Leadership