CHAPTER11:

Total Quality
Management
and Quality
Teams
 TQM Concept

LEARNING Type of groups

OBJECTIVE
S:
Group implementation
 Rao et. al (1996)

TQM
Logically, TQM should be the
set of practices that enable an
organization to deliver quality
products or services.
 A model of TQM as follows:
Management Responsibility
ISO
Philosophy 9001
T

TQM Process Quality Quality

System Tools
Q M
Customer
Communication

Training and Education

TQM also defined as …

The way of managing organization to achieve excellence

. Total – everything
. Quality – degree of excellence
. Management – art, act or way of organizing, controlling, planning,
directing to achieve certain goals

Definition by BS4778:1991: A management philosophy embracing all

activities through which the needs and expectations of the
CUSTOMER and COMMUNITY, and the objectives of the organization
are satisfied in the most efficient and cost-effective manner by
maximising the potential of ALL employees in a continuing drive for
improvement.”
TQM Six Basic Concepts

Customer Employee
Leadership
Satisfaction Involvement

Continuous
Supplier Performance
Process
Partnership Measures
Improvement
 Criteria 1 :
Leadership
 Top management must realize importance
of quality
 Quality is responsibility of everybody,
but ultimate responsibility is CEO
 Involvement and commitment to CQI
 Quality excellence becomes part of
business strategy
 Lead in the implementation process
 Empower, not control
Give attention to subordinates. Provide Emphasize
external and internal resources, training, and improvement rather
customers work environment to than maintenance
help them do their jobs

Encourage
Train and coach, not
Emphasize prevention collaboration rather
Characteristics than competition
direct and supervise

of Successful
Leaders Learn from problems –
opportunity for
Continually try to
improve
Continually
demonstrate
improvement communications commitment to quality

Establish
Choose suppliers on
organisational systems
the basis of quality, not
that supports quality
price
efforts
  Customer is always right – in Japan
customer is “King”
 Customer expectations constantly
changing – 10 years ago acceptable, now
not anymore!
 Delighting customers (Kano Model)
Criteria 2 :  Satisfaction is a function of total
experience with organization
Customer  Must give customers a quality product or
Satisfaction service, reasonable price, on-time delivery,
and outstanding service
 Need to continually examine the quality
systems and practices to be responsive to
ever – changing needs, requirements and
expectations – Retain and Win new
customers.
 Who are my customers?

What do they need?

Checklist for
What are their measures and expectations?
both internal
and external Does my product/service exceed their
expectations?
customers:
How do I satisfy their needs?

What corrective action is necessary?

 To focus on customer, an effective feedback
program is necessary, objectives of program
are to:

1. Discover customer dissatisfaction

Customer 2. Discover priorities of quality, price,
Feedback delivery
3. Compare performance with competitors
4. Identify customer’s needs
5. Determine opportunities for improvement
Criteria 3 : Employee Involvement

Deming – 15% operator

People – most important Quality comes from
errors, 85% management
resource/asset people
system

Project teams – Quality Education and training –

Suggestion schemes;
Control Circles (QCC), life long, continuous both
Kaizen, 5S teams
QIT knowledge and skills

Motivational Conducive work culture,

programmes, incentive right attitude,
schemes commitment
 Criteria 4: Continuous Process
Improvement

View all work as process – production and business

Process – purchasing, design, invoicing, etc.
Inputs – PROCESS – outputs
Process improvement – increased customer satisfaction
Improvement – 5 ways; Reduce resources, Reduce errors,
Meet expectations of downstream customers, Make
process safer, make process more satisfying to the person
doing
 40% product cost comes from purchased
materials, therefore Supplier Quality
Management important

Substantial portion quality problems from

Criteria 5 : suppliers

Supplier
Partnership Need partnership to achieve quality
improvement – long-term purchase contract

Supplier Management activities

 Use a baseline, to
identify potential
Managing by fact rather Effective management
projects, to assess
than gut feelings requires measuring
results from
improvement

E.g. Production
Criteria 6 : measures – defects per Service – billing errors,
Customer Satisfaction
million, inventory turns, sales, activity times
Performance on-time delivery

Measures Cost of poor quality

• Internal failure
Methods for measuring • External failure
• Prevention costs
• Appraisal costs
 LEADING TEAMS FOR
QUALITY IMPROVEMENT
 Some important components in
team
Flattening
Employee Team Leader
Hierarchies for
Empowerment and Roles and
Improved
Involvement. Responsibilities
Effectiveness

Team Roles and Team Formation

Team Rules
Responsibilities and Evaluation
1. Employee Empowerment and Involvement

Means giving power

to team members
Is a series of promises Please refer to 8
who perhaps had
to employees. QMPs.
little control over
their jobs.
 Clear authority Participation in
and planning at all
accountability levels

Preconditions
for Adequate
empowerment communication
and Responsibility
information for with authority
decision
making
 Top managers have eliminated
layers of bureaucratic managers in
order to improve communication
2. Flattening and simplify work.
Hierarchies
for Improved Having many layers of management
Effectiveness can have the effect of increasing the
time required to perform job, can
impede creativity, stifle initiative,
and make empowerment impossible.
 3. Team Leader Roles and
Responsibilities
S t ro n g l e a d e r s h i p i s a k e y f a c t o r t o b e
successful in achieving teamwork and
participation.
 It is about individual roles, and
also as a functionally (inter-
department) roles.

4. Team Roles Key stages of team activity:

and
Responsibilities •
•
Identifying needs
Finding ideas
• Formulating plans
• Making contacts
• Establishing the organization
• Following through
5. Team Formation and Evaluation
 The way a team is formed depends on the objectives or goals
of the team.
 Stages team development
 Forming
 Storming
 Norming
 Performing
 Mourning
Forming - the team is composed, and the objective is set.

Storming – the team members begin to get to know each other, and agreements
have not yet been made that facilitate smooth interaction between team
members.
Norming - the team becomes a cohesive unit, and interdependence, trust, and
corporation develop.

Performing - a mutually supportive, steady state is achieved.

Mourning - team members regret the ending of the project and the breaking up
of the team.
 6. Team Rules
 During the norming stage, teams
develop ground rules.
 Sample of the ground rules
elements
TYPES OF TEAMS
 1. Process Improvement Teams

 Work to improve processes and customer service.

 Activities – identifying opportunities for
improvement, prioritizing opportunities, selecting
projects, gathering data, analyzing data, making
recommendations, implementing change, and
conducting post implementation reviews.
 2. Cross-Functional Team

 Enlistpeople from a variety of functional

groups (multiple department) within the firm.
 Usually work on higher-level strategic issues.
 Often work on macro-level, quality-related
problems such as communication or redesigning
company-wide process.
 3. Tiger Teams
 Is a high-powered team assigned to work
on a specific problem or a limited amount
of time.
 These teams are often used in
reengineering efforts or in projects where
a specific problem needs to be solved in
very short period of time.
 4. Self-Directed Work Teams

 Is chartered to work on projects identified by

team members themselves.
 Are identified as either little ‘s’ or big ‘S’
teams.
 Little ‘s’ - teams are made up of employees
empowered to identify opportunities for
improvement, select improvement project, and
complete implementation.
Big ‘S’ - teams are involved in managing
the difference functions of the company
without a traditional management
structure.
•Big S contain totally self-directed
employees who make decisions
concerning benefits, finances, pay,
processes, customers, and all the other
aspects of running the business
•Big S usually hold partial ownership of
the companies.
 5. Virtual Teams
 Is emerging as more companies become ‘virtual
organizations’
 They are rarely or never physically meet, accept in
electronic meetings.
 Example :
i. Navy SEALs
ii. Massachusetts General Hospital Emergency Room
iii.The Children NASCAR Team
IMPLEMENTIN
G TEAMS
 • Helping or aiding teams by maintaining a
Facilitation process orientation.

Team • Follows a process that identifies rules for

team members and helps them become
building competent.
 Meeting Management

Steps required to planning a

meeting
• Defining an agenda
• Developing meeting objectives
• Designing the agenda activity outline
• Using process techniques - Parking lot
 • Team leaders and project
managers spend 20% of their
time resolving conflict.
Conflict • There are 4 stages in the conflict
resolution process:
resolution 1. Frustration
in teams 2. Conceptualization and
orientation
3. Interaction
4. Outcome
1. Passive conflict
resolution
2. Win-win Leaders
3. Structured problem resolve
solving
conflict in
4. Confronting conflict
5. Choosing a winner
different
6. Selecting a better
ways:
alternative
7. Preventing Conflict
THE END