Total Quality Management

UNIT-2
TQM PRINCIPLES
DEFINITION:

• Leadership is a multifaceted concept, often described in various ways by different authors.

• Burns and Eaton emphasize the role of a leader in inspiring and guiding followers toward shared goals
• Narayana Murthy (Infosys Founder) underscores the importance of vision coupled with diligent execution.
• Ramkrishna Bajaj National Quality Award criteria, rooted in values such as visionary leadership and
organizational learning, further elucidate the traits of effective leadership. In essence, successful leaders exhibit
qualities such as vision, commitment, and a focus on results, which are essential for driving organizational
excellence.
Deming's philosophy:
• Outlined in his 14 points, emphasizing continuous improvement and a shift towards quality-focused management.
• Initially presented to Japanese industry leaders in 1950 and evolved over three decades.
• Key points include defining organizational aims, prioritizing customer satisfaction, promoting defect prevention,
fostering long-term supplier relationships, and empowering employees through training and leadership.
• Advocates for creating a supportive work environment, optimizing teamwork, eliminating productivity quotas, and
promoting pride in workmanship.
• Encourages education and self-improvement for all employees, with management taking responsibility for
implementation.
• Successful transformation requires committed leadership and a cultural shift towards embracing quality
and innovation.
Deming's philosophy:

1. Define organizational aims and involve all stakeholders in the process.

2. Embrace a philosophy of continuous improvement and prioritize customer satisfaction.
3. Use inspection to improve processes, rather than merely detect defects.
4. Choose suppliers based on quality rather than price, aiming for long-term relationships.
5. Continuously improve systems to enhance quality, productivity, and cost-effectiveness.
6. Provide comprehensive training to all employees to foster commitment to improvement.
7. Develop effective leadership at all levels to support the implementation of new practices.
8. Foster a culture of trust, open communication, and innovation by eliminating fear in the workplace.
9. Optimize teamwork and collaboration across all areas of the organization.
10. Avoid setting arbitrary productivity goals and instead focus on long-term success.
11. Eliminate numerical quotas and management by objectives in favor of process improvement.
12. Remove barriers that diminish employees' pride in their workmanship.
13. Encourage ongoing education and self-improvement for all employees.
14. Take proactive steps to implement and sustain the transformation towards a quality-focused organization,
with committed leadership driving the change.
Quality Council
I.Establishment of a Quality Council: The driving force behind integrating quality into the organizational culture and
steering the Total Quality Management (TQM) approach.
II.Composition: Typically includes the CEO, senior managers from various functional areas, and possibly a coordinator
or consultant. Front-line representatives may also be included, as seen in some organizations like Friendly Ice
Cream of Wilbaham, MA.
III.Coordinator's Role: Responsible for building trust, communicating team needs to the council, ensuring team
empowerment, and facilitating team progress updates.
Duties of the Quality Council:
1. Development of core values, vision, mission, and quality policy statements with input from all personnel.
2. Creation of long-term strategic plans and annual quality improvement programs.
3. Designing and implementing education and training plans.
4. Monitoring the cost of poor quality and performance measures.
5. Identifying projects for process improvement, particularly those affecting customer satisfaction.
6. Establishment and oversight of multifunctional project teams.
7. Revision of recognition and reward systems to align with the new business approach.
In large organizations, quality councils exist at lower levels, serving similar purposes tailored to their respective
organizational levels.Integration into Organizational Culture: Over time, quality council activities become
integral parts of executive meetings,eliminating the need for a separate council. Quality assumes
precedence on the executive meeting agenda.
Quality Statements
• Core Components: Quality statements encompass the vision, mission, and quality policy, alongside core values
and concepts.
• Strategic Integration: Integral to strategic planning, these statements guide organizational direction and actions.
• Flexibility: Utilization of these statements varies across organizations, with smaller entities often relying solely on
quality policy.
• Overlap: There may be overlap among the statements, reflecting interconnected organizational goals.
• Vision Statement: A succinct declaration of future aspirations, guiding decision-making and inspiring
organizational culture.
• Mission Statement: Defines organizational purpose, customers, activities, and operational approach, serving as a
compass for stakeholders.
• Quality Policy Statement: Guides all employees on delivering products and services to meet customer needs,
emphasizing continual improvement and adherence to quality standards.
• Leadership Role: Leadership plays a crucial role in articulating and embodying the vision, mission, and quality polic
ensuring alignment throughout the organization.
Examples: Illustrative examples from notable companies demonstrate effective formulation and communication
of these statements.
Strategic Planning

• Integration of Quality and Business Strategies: Many organizations, exemplified by Corning, winner of the
Malcolm Baldrige National Quality Award, intertwine their quality strategy with their business strategy,
demonstrating the intrinsic connection between strategic quality plans and business plans.

• Timeframe Consideration: Strategic planning typically spans a timeframe of three to ten years, while short-
term planning focuses on periods of one year or less.

• Distinguishing Goals from Objectives: While goals and objectives serve similar purposes, they differ in their
timeframe; goals are oriented towards long-term planning, whereas objectives pertain to short-term planning.

• Key Characteristics of Goals: Goals should be grounded in statistical evidence, measurable, specific, definitive,
and achievable within a set timeframe, supported by a clear plan for attainment.

• Inclusivity and Challenge: The involvement of stakeholders impacted by goals in their development is crucial,
and goals should be both challenging and feasible, potentially encompassing stretch goals based on
benchmark data.
Seven Steps to Strategic Planning
1. Customer Needs Analysis: Identify anticipated future customer needs and expectations.
2. Positioning with Customers: Define the organization's desired position concerning its customers.
3. Forecasting: Predict potential future conditions that may influence products or services.
4. Gap Identification: Pinpoint discrepancies between the current organizational state and the envisioned
future state.
5. Strategies for Bridging Gaps: Develop a comprehensive plan to bridge identified gaps, setting clear goals and
assigning responsibilities.
6. Alignment: Ensure that the strategic plan aligns harmoniously with the organization's mission, vision, and core
values.
7. Execution: Allocate resources, closely monitor progress, and make necessary adjustments to ensure the
realization of strategic objectives.

Significance of Strategic Planning: Effective strategic planning empowers organizations to anticipate future needs,
allocate resources efficiently, and implement necessary changes to secure long-term success.
Customer Satisfaction
• Customer-Centric Focus: The success of any organization hinges on its customers' satisfaction, which impacts
factors like customer retention, purchase frequency, and prompt bill payments, crucial for maintaining healthy
cash flow.
• Quality Measurement: Increasingly, organizations gauge their quality based on customer satisfaction, a metric
emphasized in prestigious quality awards like the Malcolm Baldrige National Quality Award and woven
throughout ISO standards.
• Total Quality Management (TQM): TQM underscores an organization's commitment to meeting or surpassing
customer expectations, necessitating a deep understanding of customer needs and a relentless pursuit of quality
improvement.
• Defining Quality from the Customer's Perspective: Effective TQM initiatives start by defining quality from the
customer's viewpoint, with an emphasis on exceeding customer expectations and anticipating future needs.
• Complexity of Customer Satisfaction: Customer satisfaction is multi-faceted, subjective, and challenging to measu
accurately due to its emotional nature and the variability among individuals.
• Measurement Challenges: Measuring customer satisfaction involves capturing subjective feelings and opinions
accurately, often necessitating strategies beyond mere logical customer opinions to encompass emotional aspects
of purchases.
• Importance of Customer Loyalty: Understanding customer satisfaction extends beyond individual products or
services; it involves assessing customers' perceptions of competitors' offerings and fostering loyalty through
favorable comparisons.
Customer Perception of Quality
• Changing Customer Demands: The TQM philosophy emphasizes continuous improvement to address evolving
customer needs, values, and expectations, highlighting the importance of adapting to changing customer
preferences.
• Factors Influencing Purchase Decisions: Studies show that product quality and service surpass price as primary
factors influencing purchasing decisions, with performance, features, service, warranty, and reputation ranking
high among end users' priorities.
• Performance: Refers to the product or service's fitness for use, encompassing availability, reliability, and
maintainability to meet customer needs effectively.
• Features: Secondary attributes of a product or service that enhance its value, such as technological
advancements or additional functionalities.
• Service: Customer service, an intangible aspect, adds value by enhancing customer experience and
satisfaction through personalized attention and proactive measures.
• Warranty: Represents an organization's commitment to quality and customer satisfaction, serving as a
feedback mechanism, driving corrective actions, and building customer loyalty.
• Price: While customers prioritize value over price, their perception of value varies, necessitating ongoing
efforts to understand and meet individual customer expectations.
• Reputation: Total customer satisfaction stems from the overall experience with an organization, influencing
brand loyalty and customer retention, which is often more economically beneficial than acquiring new
customers.
Customer Feedback Methods

• Continuous Feedback: Customer feedback is an ongoing process crucial for understanding evolving preferences
and needs, driving continuous improvement.
• Benefits of Feedback: Feedback enables organizations to identify dissatisfaction, prioritize quality aspects,
assess performance against competitors, understand customer needs, and identify improvement opportunities.
• Role in Service Industries: Feedback drives new product development in service sectors like insurance and
banking, enhancing customer experience and satisfaction.
• Listening to Customers: Effective organizations actively listen to customer feedback and incorporate it into
decision-making processes, leading to innovative solutions and improved customer service.
Feedback Collection Tools:
 Comment Cards: Low-cost method attached to products for basic feedback, often used in hospitality industries.
 Customer Questionnaires: Gather opinions and perceptions, though costly and time-consuming, typically
administered through mail or telephone surveys.
 Focus Groups: Assemble customers for in-depth discussions, effective for understanding expectations and
requirements.
 Imprint Analysis: Uncover intrinsic feelings associated with products or services, providing insights that
traditional surveys may miss.
 Toll-Free Telephone Numbers: Effective for receiving complaint feedback and responding promptly.
Customer Feedback Methods

 Customer Visits: Proactive monitoring of product performance at customer sites, facilitating direct interaction
and problem identification.
 Internet and Computers: Monitor online discussions and consumer feedback through platforms like newsgroups
and mailing lists, offering timely insights and creative ideas for improvement.

• Effective Survey Design:

Craft questions carefully to avoid bias and obtain specific, actionable information.
Acknowledge customers' time and ensure surveys are designed to meet their expectations.
Focus on client capabilities and desires to avoid raising unrealistic expectations.

• Utilizing Feedback: Transform collected data into actionable insights, driving improvements and
informing strategic decisions based on customer needs and preferences.

Customer Satisfaction Surveys in India:

• Current Practices: In India, comprehensive customer satisfaction measurement systems akin to
ASCI (American Customer Satisfaction Index) are not widespread.

• Industry Surveys: Independent organizations like J. D. Power Asia Pacific conduct surveys, particularly in the
automotive sector.
Customer Feedback Methods

• Maruti's Success: Maruti has consistently ranked highest in automotive customer satisfaction for nine consecutive
years, as per surveys of service quality at dealers.
• Survey Criteria: Satisfaction is measured among vehicle owners visiting authorized dealership service centers for
maintenance or repair work during the warranty period (first 12 to 18 months of ownership).
• Key Metrics: Satisfaction is determined based on seven measures, including problems experienced, service quality,
user-friendly service, service advisor, service initiation, service delivery, and service experience.
• Model Rankings: According to the 2009 J. D. Power Asia Pacific India Vehicle Dependability Study, Ford models
excel in the entry midsize and SUV segments, while Toyota models lead in the premium midsize and MUV/MPV
segments. Honda and Maruti models also achieve top rankings in other categories.
Handling Customer Complaints:
• Importance of Complaints: Complaints, though reactive, are crucial for gathering data on customer perceptions as
dissatisfied customer can easily become lost. Many organizations utilize customer dissatisfaction as a primary
measure for assessing process improvement efforts.
• Low Complaint Rates: A small percentage of dissatisfied customers formally complain to management, while
others express dissatisfaction through interactions with frontline staff or take no action at all. This low complaint
rate can mislead management into thinking that customers are satisfied.
• Opportunity for Improvement: Complaints should be seen as an opportunity to obtain valuable information and
provide positive service to the customer. It's an opportunity for the organization to rectify mistakes and retain
customers.
• Handling Complaints: Organizations can take several actions to effectively handle complaints
 Actively solicit and promptly act on feedback, both positive and negative.
 Develop procedures for complaint resolution empowering frontline personnel.
 Analyze complaints to identify root causes and eliminate them.
 Establish customer satisfaction measures and constantly monitor them.
 Communicate complaint information and resolution results across the organization.
 Train frontline employees to handle complaints efficiently and effectively, empowering them to make decisions to
satisfy customers.
 Employee Satisfaction: Employee satisfaction is as crucial as customer satisfaction. Satisfied employees provide
better service, leading to fewer complaints and increased sales volume.
Key Elements of Service Quality:

• 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.
Key Elements of Service Quality:
• 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 documents 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. Ensure they are adequately trained.
22. Recognize and reward performance.

• Leadership:
23. Lead by example.
24. Listen to the front-line people.
25. Strive for continuous process improvement.
Key Elements of Service Quality:
• The service sector has become increasingly vital to India's economy, contributing about 54% of the GDP.
Industries such as mobile communication, software, hotels, insurance, call centers, healthcare, and retail
have experienced rapid growth, highlighting the growing importance of the service sector in the Indian industry.

The Kano Model: Understanding Customer Requirements

The Kano model, depicted in Figure 3-8, offers insight into three primary domains of customer satisfaction:

1. Explicit Requirements:
- Represented by the diagonal line.
- Easily identifiable and typically performance-related.
- Explicit requirements, whether verbal or written, are anticipated by customers and expected to be met.

2. Innovations:
- Illustrated by the curved line in the upper left corner.
- Stemming from purposely vague initial instructions, innovations introduce unexpected features that excite and deli
- While initially surprising, innovative features quickly become expected by customers.
The Kano Model: Understanding Customer Requirements
3. Unstated or Unspoken Requirements:
- Represented by the curve in the lower right corner.
- Customers may be unaware of these requirements or assume they will be automatically provided.
- These implicit needs are challenging to define but prove costly if neglected.

Understanding and addressing all three types of customer requirements are essential for businesses striving
to satisfy their customer base. As Peter Drucker famously remarked, "Customers don’t buy products,
they buy results." The organization's goal should be to exceed customer expectations, not merely meet them.

Figure 3-9: Voice of the Customer Diagram

- This diagram, summarizing key concepts from the chapter, underscores the importance of understanding and
fulfilling customer needs to drive satisfaction and success.
The Kano Model: Understanding Customer Requirements
The Kano Model: Understanding Customer Requirements
Employee Involvement for Quality Improvement
Employee involvement stands as a pivotal approach for enhancing quality and productivity within organizations,
with its roots traced back to the success of Japanese firms in the global market. However, it's crucial to recognize
that employee involvement is neither a substitute for management nor the ultimate solution for quality enhancement
Instead, it serves as a pathway toward achieving organizational goals related to quality and productivity across all
hierarchical levels.

Motivation: Understanding the Key Driver

Understanding motivation is imperative in comprehending how employee involvement can be harnessed to drive
process improvement. By delving into motivation dynamics, organizations can effectively leverage employee
participation to propel quality enhancement initiatives forward.

Maslow’s Hierarchy of Needs:

Abraham Maslow's theory of motivation revolves around a hierarchy of needs, consisting of five levels.
Each level represents a different set of needs that individuals seek to fulfill:

engaged, and committed to achieving organizational success.

Employee Involvement for Quality Improvement
Maslow’s Hierarchy of Needs:

1. Survival: This level encompasses basic physiological needs like food, clothing, and shelter, which are often
fulfilled through employment. In the workplace, it includes factors such as proper lighting,
heating/air conditioning, and access to necessary tools and resources.

2. Security: This level pertains to the need for a safe and secure work environment and job stability. Employees value
organizations that prioritize their well-being and offer job security along with privacy and safety measures.

3. Social: Human beings are inherently social creatures, and this level addresses the need for belongingness and
acceptance within a group or community. Organizations can foster a sense of belonging by promoting teamwork and
providing formal and informal social spaces for interaction.

4. Esteem: Individuals seek recognition, respect, and self-worth in this level. Employees desire acknowledgment of
their contributions, opportunities for advancement, and a sense of pride in their work.

5. Self-actualization: At the highest level, individuals strive for self-fulfillment and realizing their full potential.
Organizations can support this by offering opportunities for personal and professional growth, such as
promotion from within.
Employee Involvement for Quality Improvement
Maslow's theory suggests that as individuals progress up the hierarchy, their needs at lower levels become less
motivating, and they focus more on fulfilling higher-level needs.
Employee Involvement for Quality Improvement
Herzberg’s Two-Factor Theory:Frederick Herzberg expanded on Maslow's ideas with his Two-Factor Theory,
which distinguishes between motivators and dissatisfiers:

- Motivators: Factors such as recognition, responsibility, achievement, and the nature of the work itself,
which drive job satisfaction and motivation.

- Dissatisfiers: Also known as hygiene factors, these include aspects like salary, benefits, working conditions, and
organizational policies, which, if absent or inadequate, can lead to dissatisfaction.

Herzberg's theory emphasizes the importance of addressing both motivators and dissatisfiers in the workplace
to enhance employee satisfaction and performance.

Employee Wants:

Studies have shown that employee wants align closely with Maslow's and Herzberg's theories of motivation.
While managers often perceive good pay as the primary motivator, employees prioritize factors such as interesting wo
Employee Involvement for Quality Improvement
Achieving a Motivated Workforce:

To foster a motivated workforce, managers can implement various strategies:

1. Self-awareness: Managers should understand their own motivations and strengths, seeking feedback from peers
and employees to improve self-awareness.

2. Understanding employees: By listening to employees and understanding their interests and goals, managers
can align individual aspirations with organizational objectives.

3. Promoting a positive attitude: Managers should cultivate a positive work environment through constructive
feedback, respect, and sensitivity towards employees.

4. Setting clear goals: Well-defined goals that address both individual and organizational needs provide direction and
purpose for employees.

5. Monitoring progress: Regularly reviewing performance and providing feedback helps employees stay on track
towards their goals.
Employee Involvement for Quality Improvement
Achieving a Motivated Workforce:

6. Offering interesting work: Job rotation, enlargement, and enrichment can provide employees with challenging
and meaningful tasks that contribute to their growth and development.

7. Effective communication: Open and transparent communication channels keep employees informed and
engaged, reducing reliance on rumors and grapevine communication.

8. Celebrating success: Recognizing and rewarding employee achievements reinforces positive behavior and
encourages continued motivation.

By embracing these concepts, managers can create an environment where employees are motivated, , appreciation,
involvement, and job security.
Employee Involvement for Quality Improvement
Achieving a Motivated Workforce:
Empowerment

Empowering employees is a crucial aspect of enhancing productivity and innovation within organizations.
The Manufacturers' Alliance for Productivity and Innovation highlights that empowering employees doubles
the likelihood of significant product or service improvement. Empowerment entails investing individuals with
authority and creating an environment where they have the ability, confidence, and commitment to take o
wnership of their work processes and contribute to organizational goals.

Conditions Necessary for Empowerment:

Three key conditions are necessary to create an empowered environment:

1. Understanding the Need for Change: Effective communication about the reasons for organizational change is
essential. Employees must understand their role in the change process, and management should recognize that
individuals change for personal reasons rather than organizational ones. Factors such as age, education, skills, and
perceived internal control influence employees' receptiveness to empowerment.

2. System Change: Organizational systems should be aligned with the new paradigm of empowerment. This involves
reinforcing and motivating individual and group accomplishments, encouraging freedom to act
(and sometimes to fail), and providing necessary resources and tools for change. Contextual factors
such as union involvement and industry type also impact the success of empowerment initiatives.
Empowerment
3. Strategy and Technology: Companies with a focus on customization in their business strategy and technology are
more likely to embrace empowerment. It's essential to consider strategic alignment and technological
capabilities when determining an organization's readiness for employee empowerment.

Benefits of Empowerment:

Empowerment enables employees to:

- Stop work in progress

- Intervene on behalf of customers
- Make exceptions to procedures
- Rework products or services
- Replace merchandise
- Refund money or authorize credit

These actions demonstrate the confidence and authority employees have to make decisions and take ownership
of their work processes.
Empowerment
Recognition and Reward:
Recognition involves publicly acknowledging the positive contributions of individuals or teams to the organization's
success, often through verbal and written praise and symbolic items like certificates or plaques. On the other hand,
rewards are tangible incentives such as tickets to events, dinners, or cash awards aimed at promoting desirable
behavior. These two components form a system that communicates the value of employees within the organization.

Employee Involvement in Recognition and Reward Programs:It's essential to involve employees in planning and
implementing recognition and reward programs.

Cross-functional teams representing various areas of the organization can develop systems that are more likely to
succeed. These systems should be clearly understood by employees, reviewed periodically for improvement, and
incorporate input from managers, customers, and suppliers in the nomination and selection process.

Recognition criteria must be transparent and consistently applied throughout the organization.
Recognition and Reward:
Effective Recognition and Reward Systems:

An effective recognition and reward system should:

1. Serve as a continual reminder of the organization's focus on quality and productivity.

2. Provide visible appreciation to high achievers for outstanding performance.
3. Motivate employees by giving them specific goals to work towards.
4. Boost morale by fostering healthy competition among individuals and teams seeking recognition.

Gainsharing:

Gainsharing is a financial reward system based on improved organizational performance. Unlike profit-sharing,
which distributes a portion of year-end profits, gainsharing emphasizes teamwork and productivity gains.
It involves calculations based on potential sales income, labor costs, and actual team performance, with rewards
distributed periodically based on performance metrics. Gainsharing reinforces the idea that organizational success is
dependent on collective effort and provides a mechanism for sharing productivity gains among employees.
Recognition and Reward:
Performance Appraisals:

1. Informative Feedback: Performance appraisals provide employees with valuable feedback regarding their
performance, highlighting areas of strength and areas needing improvement.

2. Basis for Promotions and Salary Increases: These appraisals serve as a foundation for decisions regarding
promotions and salary adjustments, ensuring that employees are recognized and rewarded appropriately for their
contributions.

3. Opportunities for Counseling and Development: Performance appraisals offer a platform for discussions on
career development, identifying areas where employees may need additional support or training to enhance
their skills.

4. Employee Involvement: Successful performance appraisals involve employees in the process, allowing them to
contribute their perspectives and goals, fostering a sense of ownership and commitment.

5. Clear Standards Establishment: Setting clear and measurable performance standards is crucial for effective
performance appraisals, ensuring that expectations are transparent and consistent across the organization.
Recognition and Reward:
Performance Appraisals:

6. Focus on Continuous Improvement: Performance appraisals should not be viewed as mere evaluations but rather
as opportunities for ongoing growth and development, encouraging employees to strive for continuous improvement.

7. Critiques of Traditional Appraisal Systems: Traditional appraisal systems have faced criticism for their tendency to
prioritize short-term performance outcomes over long-term objectives, potentially undermining the collaborative
spirit within teams, and relying heavily on subjective evaluations.

8. Suggestions for Improvement: To address these shortcomings, suggestions include simplifying rating scales to
make evaluations more straightforward, emphasizing team-based evaluations to foster collaboration, conducting
more frequent reviews to keep performance discussions current, and integrating customer and process improvement
metrics to provide a holistic view of performance.

By incorporating these points into performance appraisal systems, organizations can enhance their effectiveness in
evaluating and developing their workforce, ultimately driving better overall performance and achieving long-term
success.
Recognition and Reward:
Performance Appraisals:

6. Focus on Continuous Improvement: Performance appraisals should not be viewed as mere evaluations but rather
as opportunities for ongoing growth and development, encouraging employees to strive for continuous improvement.

7. Critiques of Traditional Appraisal Systems: Traditional appraisal systems have faced criticism for their tendency to
prioritize short-term performance outcomes over long-term objectives, potentially undermining the collaborative
spirit within teams, and relying heavily on subjective evaluations.

8. Suggestions for Improvement: To address these shortcomings, suggestions include simplifying rating scales to
make evaluations more straightforward, emphasizing team-based evaluations to foster collaboration, conducting
more frequent reviews to keep performance discussions current, and integrating customer and process improvement
metrics to provide a holistic view of performance.

By incorporating these points into performance appraisal systems, organizations can enhance their effectiveness in
evaluating and developing their workforce, ultimately driving better overall performance and achieving long-term
success.
Continuous Process Improvement

Continuous improvement is a fundamental principle for quality-based organizations striving for perfection in their
business and production processes. While achieving absolute perfection may be impossible, the pursuit of continual
improvement is essential for staying competitive and meeting evolving customer needs. Here are key strategies for
driving continuous improvement:

1. Viewing all work as a process: Recognizing that every task, whether related to production or business activities,
is part of a larger process helps identify areas for improvement and optimization.

2. Making processes effective, efficient, and adaptable: Striving to optimize processes to deliver quality outputs
efficiently while remaining flexible enough to adapt to changing circumstances and customer requirements.

3. Anticipating changing customer needs: Proactively anticipating and responding to shifts in customer preferences
and market trends ensures that products and services remain relevant and valuable.

4. Controlling in-process performance: Monitoring and managing key performance indicators such as scrap
reduction, cycle time, and control charts help ensure consistent quality and identify areas for improvement.
Continuous Process Improvement

5. Maintaining constructive dissatisfaction: Encouraging a mindset of continual dissatisfaction with the current
level of performance motivates individuals and teams to seek ongoing improvement.

6. Eliminating waste and rework: Identifying and eliminating inefficiencies, redundancies, and unnecessary
activities in processes reduces waste and improves productivity.

7. Investigating activities that do not add value: Examining all aspects of work to identify and eliminate
non-value-added activities helps streamline processes and improve efficiency.

8. Eliminating nonconformities: Addressing and rectifying deviations from quality standards in all phases of work,
no matter how small, prevents issues from escalating and ensures consistent quality.

9. Using benchmarking: Studying industry best practices and benchmarks helps identify opportunities for
improvement and enhances competitive advantage.
Continuous Process Improvement

10. Innovating to achieve breakthroughs: Encouraging creativity and innovation fosters breakthrough improvements
and drives organizational growth and success.

11. Incorporating lessons learned: Learning from past experiences and incorporating insights into future activities
helps prevent recurring issues and promotes continuous learning and improvement.

12. Using technical tools: Leveraging tools such as statistical process control (SPC), experimental design, quality
function deployment (QFD), and other analytical methods enhances decision-making and problem-solving
capabilities.

By fostering a quality-driven culture where individuals are empowered to analyze and improve their work and
processes continuously, organizations can achieve sustainable growth and success in today's competitive landscape.
Continuous Process Improvement

The concept of a process encompasses all business and production activities within an organization,
including areas such as purchasing, engineering, accounting, and marketing. Nonconformance within these
processes presents opportunities for significant improvement. Here is an overview of the key aspects of processes:

1. Inputs and Outputs: Processes receive inputs, which may include materials, money, information, or data, and
produce outputs, such as products, services, or further information. Outputs often require performance measures
to ensure they meet desired outcomes, such as customer satisfaction.

2. Interaction of Elements: A process involves the interaction of various elements, including people, materials,
equipment, methods, measurements, and the environment, to produce an outcome. This outcome could be a
product, service, or input to another process.

3. Value-Added Activities and Repeatability: A process must include value-added activities, meaning activities
that contribute directly to meeting customer needs or requirements. Additionally, processes should be repeatable,
meaning they can be consistently executed to produce consistent results.

4. Effectiveness, Efficiency, Control, and Adaptability: Processes should be effective in achieving their intended
outcomes, efficient in their use of resources, under control to ensure consistency and predictability, and
adaptable to changes in requirements or conditions.
Continuous Process Improvement

5. Compliance with Policies and Constraints: Processes must adhere to certain conditions imposed by policies,
regulations, or constraints. These could include union-based job descriptions, environmental regulations, or
ethical policies.

6. Customer Focus: Process definition should begin with a clear understanding of internal and external customers.
Improvements to processes should ultimately aim to increase customer satisfaction by delivering higher
quality products and services.

7. Process Ownership: Every process should have at least one owner responsible for its execution and improvement.
Ownership may span multiple organizational boundaries, requiring collaboration among individuals from different
areas.

8. Approaches to Improvement: There are several ways to improve processes, including reducing resources,
reducing errors, meeting or exceeding customer expectations, enhancing safety, and increasing satisfaction
for those performing the process.
Continuous Process Improvement
Juran’s Trilogy

Juran’s Trilogy :A cost-oriented approach to quality improvement focusing on quality planning, quality control, and
quality improvement.

Shewhart’s Plan-Do-Study-Act (PDSA) Cycle: A systematic approach involving planning a change, implementing it,
studying the results, and acting based on the findings.

Kaizen: A Japanese approach emphasizing small, incremental improvements to both individuals and the organization
as a whole.

Reengineering and Six Sigma: These approaches involve radical redesign of processes and the application of
statistical methods to achieve significant improvements in quality and efficiency.

Each approach offers distinct methodologies and techniques for achieving continuous improvement in processes and
organizational performance.
Juran’s Trilogy

Juran’s Trilogy :A cost-oriented approach to quality improvement focusing on quality planning, quality control, and
quality improvement.

Planning:
1. Determining Customers and Needs: This step involves identifying both external and internal customers and
understanding their needs, which may not always be explicitly stated.
2. Developing Product/Service Features: Once customer needs are identified, a multifunctional team works to
develop product or service features that address these needs while optimizing costs.
3. Developing Processes: A multifunctional team designs processes to produce the desired product or service
features, ensuring scalability from prototype to full-scale production and evaluating process capability.
4. Transferring Plans to Operations: This step involves implementing the plans developed by the multifunctional
teams, ensuring proper training, process validation, and validation of consistency in meeting requirements.

Control:
1. Determining Control Items and Measures: Control involves identifying what needs to be monitored and
establishing measurable goals.
2. Measurement and Comparison: Actual performance is measured against established goals, using techniques
like statistical process control (SPC) tools.
Juran’s Trilogy

Improvement:
1.Establishing Infrastructure: An effective infrastructure, such as a quality council, is established to identify
improvement projects and provide resources to project teams.
2.Identifying Improvement Projects: Improvement projects are identified and teams are formed with designated
project owners.
3.Implementing Solutions: Project teams work to identify root causes, develop solutions, and establish controls to
sustain improvements.
4.Continuous Improvement: Improvement efforts can be incremental or breakthrough, with a focus on continuous
learning and applying lessons from past improvements to set new goals.

These three components are interconnected, with planning setting the foundation for control and improvement
efforts. Control ensures that processes remain in alignment with goals, while improvement initiatives aim to raise
performance levels continuously. By integrating these components, organizations can effectively manage quality and
drive ongoing improvement.
Juran’s Trilogy

The four primary improvement strategies—repair, refinement, renovation, and reinvention—offer different
approaches to addressing various challenges within an organization. Here's an overview of each strategy:

1. Repair:
- Objective: Fix anything that is broken to restore it to its original functionality.
- Levels:
- Quick fixes for immediate problems (short-term).
- Identifying and eliminating root causes for permanent solutions (long-term).
- Note: Repair does not enhance the process beyond its original design.

2. Refinement:
- Objective: Continuously improve processes, products, and services incrementally, even if they are not broken.
- Approach: Incremental improvements in efficiency and effectiveness.
- Execution:
- Individuals and teams can participate.
- Changes may be so gradual that they are barely noticeable.
- Challenges:
- Lack of recognition and reward for gradual changes.
- Documentation and communication of minor changes may be neglected.
Juran’s Trilogy

3. Renovation:
- Objective: Achieve major or breakthrough improvements in products, services, processes, or activities.
- Characteristics:
- Resulting output may seem different from the original but is essentially the same.
- Relies on innovation and technological advancements.
- Examples:
- Transition from manual to electric drills.
- Evolution of products due to technological advancements.
- Execution: Typically undertaken by teams rather than individuals.

4. Reinvention:
- Objective: Develop entirely new products, services, processes, or activities to meet customer requirements.
- Approach: Starting from scratch without considering existing solutions.
- Characteristics:
- Preceded by the belief that current approaches cannot meet customer needs.
- Based on a thorough understanding of customer requirements and expectations.
- Examples:
- Introduction of laser or water jet drilling processes.
Juran’s Trilogy
PDSA Cycle
PDSA Cycle

The problem-solving method, also known as the scientific method, is a systematic approach used to
achieve continuous improvement. It consists of seven phases, each dependent on the previous one:

Phase 1: Identify the Opportunity

- Objective: Identify and prioritize improvement opportunities.
- Steps:
1. Identify the problem using various sources such as Pareto analysis, proposals, surveys, and brainstorming.
2. Form a team to address the problem, if necessary.
3. Define the scope of the problem clearly and objectively.

Phase 2: Analyze the Current Process

- Objective: Understand the current process and its performance.
- Steps:
1. Develop a process flow diagram to visualize the workflow.
2. Define target performance measures and gather relevant data.
3. Identify customers, inputs, outputs, and interfaces of the process.
4. Analyze causes using tools like cause-and-effect diagrams and simulation modeling.
PDSA Cycle

Phase 3: Develop the Optimal Solution(s)

- Objective: Establish potential solutions and recommend the best one.
- Steps:
1. Brainstorm possible solutions using creativity and innovation.
2. Consider three types of creativity: creating new processes, combining processes, or modifying existing processes.
3. Evaluate solutions based on criteria such as cost, feasibility, and effectiveness.

Phase 4: Implement Changes

- Objective: Prepare and implement the selected solution.
- Steps:
1. Obtain approval for the implementation plan, including why, how, when, who, and where.
2. Present the plan to relevant stakeholders for feedback and support.
3. Monitor the implementation process using measurement tools like run charts and control charts.

Phase 5: Study the Results

- Objective: Monitor and evaluate the effectiveness of the implemented changes.
- Steps:
1. Meet periodically to evaluate the results and identify any unforeseen problems.
2. Determine if the problem has been solved satisfactorily or if further adjustments are needed.
PDSA Cycle

Phase 6: Standardize the Solution

- Objective: Institutionalize the change to ensure ongoing improvement.
- Steps:
1. Implement positive control of the process to keep important variables under control.
2. Certify the quality peripherals (system, environment, supervision) to meet or exceed customer requirements.
3. Certify operators to ensure they are trained and competent in executing the process.

Phase 7: Share Learning

- Objective: Share the lessons learned from the problem-solving process.
- Steps:
1. Document the entire problem-solving process, including successes and failures.
2. Share the findings and best practices with relevant stakeholders to facilitate organizational learning and
continuous improvement.
PDSA Cycle
Kaizen

Kaizen, a Japanese term meaning "continuous improvement," is a philosophy that emphasizes management's
role in encouraging and implementing small improvements involving everyone in an organization.
It focuses on making continuous, incremental improvements to processes, products, and services,
aiming to enhance efficiency, effectiveness, control, and adaptability.

Here are key components of the Kaizen approach:

1. Value-added and Non-value-added Work Activities: Identifying and distinguishing between activities t
hat add value to the end product or service and those that do not.

2. Muda (Waste): Recognizing and eliminating seven types of waste: over-production, delay, transportation,
processing, inventory, wasted motion, and defective parts.

3. Motion Study and Cell Technology: Applying principles of motion study to optimize workflow and using
cell technology to organize work processes into efficient units.

4. Materials Handling and One-piece Flow: Optimizing materials handling processes and adopting a one-piece
flow approach to minimize inventory and improve efficiency.
Kaizen

5. Standard Operating Procedures: Documenting and standardizing procedures to ensure consistency and efficiency
in operations.

6. The Five S's: Implementing workplace organization practices focused on proper arrangement, orderliness,
personal cleanliness, cleanup, and discipline.

7. Visual Management: Using visual displays and tools to enhance communication and transparency in operations.

8. Just-in-Time (JIT) Principles: Adopting JIT principles to produce only what is needed, when it is needed, and
in the right quantities, minimizing waste and improving efficiency.

9. Poka-yoke: Implementing error-proofing techniques to prevent or detect errors before they occur.

10. Team Dynamics: Fostering a culture of teamwork, problem-solving, effective communication, and
conflict resolution among employees.

Kaizen encourages a culture where operators are empowered to suggest and implement incremental
improvements to their work processes continually. These improvements are often simple and inexpensive
but can lead to significant enhancements in efficiency and quality.
Kaizen

The Plan-Do-Study-Act (PDSA) cycle is commonly used to implement Kaizen concepts, facilitating iterative
improvement efforts.

While traditional Kaizen involves slow, incremental improvements, influenced by concepts from lean
manufacturing and the Toyota Production System, organizations can implement Kaizen principles more rapidly.
For example, companies like Zydus Cadila India have successfully applied Kaizen principles to optimize their
operations, resulting in substantial improvements in productivity, cycle time, and waste reduction across various
manufacturing units. This demonstrates the effectiveness of Kaizen in driving continuous improvement and achieving
tangible results.
5S Principles:
The 5S framework was originally developed by just-in-time expert and international consultant Hiroyuki Hirano. The
5S framework is an extension of Hirano's earlier works on justin-time production systems. The 5Ss represent a
simple "good housekeeping" approach to improving the work environment consistent with the tenets of Lean
Manufacturing System. It promotes daily activity for continuous improvement. It fosters efficiency and productivity
while improving work flow. It encourages a proactive approach that prevents problems and waste
before they occur. It provides a practical method for dealing with the real problems that workers face every day.
SEIRI / SORT / CLEANUP:
The first step of the "5S" process, Seiri, refers to the act of throwing away all unwanted, unnecessary, and unrelated
materials in the workplace. People involved in Seiri must not feel sorry about having to throw away things. The idea
is to ensure that everything left in the workplace is related to work. Even the number of necessary items in the
workplace must be kept to its absolute minimum.
In performing SEIRI, this simple guideline is a must:
1. Separate needed items from unneeded items.
2. Remove unneeded items from working areas.
3. Discard the items never used.
4. Store items not Item not needed now.
5. Remove all excess items from working areas, including work pieces, supplies, personal items, tools, instruments,
and equipment.
5S Principles:
SEIRI / SORT / CLEANUP:

6. Use red tag to get rid of unneeded items.

7. Store items needed by most people in a common storage area.
8. Store items only needed by each individual in his/her own working area.
9. Organize working / storage area.

SEITON / SET IN ORDER / ARRANGING:

SEITON, or orderliness, is all about efficiency. This step consists of putting everything in an assigned place so that it
can be accessed or retrieved quickly, as well as returned in that same place quickly. If everyone has quick access to
an item or materials, work flow becomes efficient, and the worker becomes productive. Every single item must be
allocated its own place for safekeeping, and each location must be labelled for easy identification of what it's for. Its
objective includes; the needed items can be easily found, stored and retrieved, supports efficiency and productivity,
First-in first-out (FIFO), and save space and time.
In performing SEITON, follow these guidelines:
1. A place for everything and everything in its place.
2. Place tools and instructional manual close to the point of use.
3. Store similar items together. Different items in separate rows.
4. Don't stack items together. Use rack or shelf if possible.
5. Use small bins to organize small items.
5S Principles:
SEITON / SET IN ORDER / ARRANGING:
6. Use color for quickly identifying items.
7. Clearly label each item and its storage areas (lead to visibility).
8. Use see-through cover or door for visibility.
9. Use special designed cart to organize tools, jigs, measuring devices, etc., that are needed for each particular
machine.

SEISO / SHINE / NEATNESS

SEISO, the third step in "5S", says that 'everyone is a janitor.' SEISO consists of cleaning up the workplace and giving it
a 'shine'. Cleaning must be done by everyone in the organization, from operators to managers. It would be a
good idea to have every area of the workplace assigned to a person or group of persons for cleaning. SEISO is not
just cleaning, but a whole attitude that includes ensuring everything is in perfect condition. Everyone should see the
'workplace' through the eyes of a visitor - always thinking if it is clean enough to make a good impression. Its
objective includes; cleanliness ensures a more comfortable and safe working place, cleanliness will lead to visibility
so as to reduce search time and cleanliness ensures a higher quality of work and products. Follow these guidelines in
performing SEISO:
1. Use dust collecting covers or devices to prevent possible dirt or reduce the amount of dirt.
2. Investigating the causes of dirtiness and implement a plan to eliminate the sources of dirt.
3. Cover around cords, legs of machines and tables such that dirt can be easily and quickly removed.
5S Principles:
SEISO / SHINE / NEATNESS
4. Operators clean their own equipment and working area and perform basic
preventive maintenance.
5. Keep everything clean for a constant state of readiness.

SEIKETSU / SYSTEMIZE / DISCIPLINE

The fourth step of "5S", or SEIKETSU, more or less translates to 'standardized clean-up'. It consists of defining the
standards by which personnel must measure and maintain 'cleanliness'. SEIKETSU encompasses both personal
and environmental cleanliness. Personnel must therefore practice 'SEIKETSU' starting with their personal tidiness.
Visual management is an important ingredient of SEIKETSU. Color-coding and standardized coloration of
surroundings are used for easier visual identification of anomalies in the surroundings. Personnel are trained to
detect abnormalities using their five senses and to correct such abnormalities immediately.

The guidelines include:

1. Removing used, broken, or surplus items from the work area
2. Making safety a prime requirement by paying attention to noise, fumes, lighting, cables, spills, and other aspects
of the workplace environment
3. Checking that items are where they should be
4. Listening to the "voice" of the process and being alert to things such as unusual noises
5S Principles:

The guidelines include:

4. Ensuring that there is a place for everything and that everything is in its place
5. Wearing safe working apparel and using safe equipment
6. Minimizing all waste and the use of valuable resources such as oil, air, steam, water, and electricity

SHITSUKE / SUSTAIN / ON-GOING IMPROVEMENT:

The last step of "5S", SHITSUKE, means 'Discipline.' It denotes commitment to maintam orderliness and to practice
the first 4 S as a way of life. The emphasis of SHITSUKE is elimination of bad habits and constant practice of
good ones. Once true SHITSUKE is achieved, personnel voluntarily observe cleanliness and orderliness at all times,
without having to be reminded by management. The characteristic of 5S tends to overlap significantly rather than
cover very different subjects. Rather than worry about what fits into SEIRI and what fits into Seiton,
use them to reinforce each other and implement the whole thing.
5S Principles:
5S Principles:
KAIZEN: IKAI -CHANGE, ZEN = GOODI Kaizen is the practice of continuous improvement. Kaizen was originally
introduced to the West by Masaaki Imai in his book Kaizen: The Key to Japan's Competitive Success in 1986.
Kaizen is continuous improvement that is based on certain guiding principles:
1.Good processes bring good results
2.Go see for yourself to grasp the current situation
3.Speak with data, manage by facts
4.Take action to contain and correct root causes of problems
5.Work as a team
6. Kaizen is everybody's business
5S Principles:
The Kaizen improvement focuses on the use of :
1.Value — added and non — value work activities.
2.Muda, which refers to the seven classes of waste — over-production, delay,
transportation, processing, inventory, wasted motion, and defective parts.
3.Principles of materials handling and use of one — piece flow.
4.Documentation of standard operating procedures.
5.The five S's for workplace organization.
6.Visual management.
7.Just — in — time principles.
8.Principles of motion study and the use of cell technology.
9.Poka — Yoke.
10. Team dynamics.
Supplier Partnership

SUPPLIER PARTNERSHIP:
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:
a. Improved quality;
b. reduced cost;
c. Increased productivity;
d. Increased efficiency;
e. Increased market share;
f. Increased opportunity for innovation; and
g. Continuous improvement of products / services.
The three key elements to a partnership relationship are
1. Long term commitment
2. Trust
3. Shared Vision
Supplier Partnership
SOURCING:
The three types of sourcing are
1. Sole sourcing
2. Multiple sourcing
3. Single sourcing
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 Partnership
SUPPLIER CERTIFICATION:
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 atleast 6 months.
3. No production related negative incidents for atleast 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 is done
1. To obtain an overall rating of supplier performance.
2. To communicate with suppliers regarding their performance.
3. To provide each supplier with a detailed and true record of problems for corrective action.
4. To enhance the relationship between the buyer and the supplier.