2ed technical meeting


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2ed technical meeting

  1. 1. PRESENTATION OUTLINE 1. Fundamentals of Total Quality Management. 2. Total Quality Management Model. 3. Top Management’s Role in Total Quality Management. 4. Strategic Quality Planning. 5. Quality Culture.
  2. 2. WHAT IS TOTAL QUALITY MANAGEMENT? Total Quality Management is the systematic and integrated approach of attaining customer satisfaction at minimum cost through continuous improvements in all areas of an organization’s operations, products and services.  Ranjit Singh Malhi
  3. 3. MAIN FEATURES OF TOTAL QUALITY MANAGEMENT 1. Customer-oriented. 2. Organization-wide. 3. Strategic Focus. 4. Change in Corporate Culture. 5. Process Management. 6. Continuous Improvement.
  4. 4. WHAT IS A TOTAL QUALITY ORGANIZATION? A Total Quality Organization is one which continuously delights its customers in an efficient manner by integrating its various systems, particularly the management system, social system (people) and the technical system (work processes), into a functional whole.  Ranjit Singh Malhi
  5. 5. 10 FUNDAMENTAL PRINCIPLES OF QUALITY 1. Quality improvement begins with top management’s visible commitment and explicit involvement. 2. Quality is defined and judged by the customers. 3. Quality involves doing the right things right, first time, every time.
  6. 6. 4. The ultimate creators of quality products and services are people. 5. A Culture of Quality is necessary for creating and sustaining a work environment that is conducive to long-lasting quality improvement. 6. The system for improving quality is prevention of errors and defects, not inspection.
  7. 7. 7. Quality is process improvement and Management by Fact. 8. TQM organizations are essentially learning organizations. 9. Quality is teamwork. 10. Quality improvement is a never-ending process.
  8. 8. THE RACE TO QUALITY IMPROVEMENT To compete and win, we must redouble our efforts – not only in the quality of our goods and services, but in the quality of our thinking, in the quality of our response to customers, in the quality of our decision-making, in the quality of everything we do.  E. S. Woolard Ex-CEO E.I. DuPont
  9. 9. IS YOUR ORGANIZATION QUALITY-DRIVEN? 1. Do you know clearly what are your customers’ key requirements? 2. Are your customers’ requirements being met? 3. Do you have a clear mission and verifiable corporate quality goals?
  10. 10. 4. Do you have challenging and verifiable performance standards? 5. Are fellow employees treated as customers? 6. Do you measure performance? 7. Are recognition and reward systems based on quality work or job performance?
  11. 11. 8. Are your frontline staff empowered to serve customers well? 9. Is your corporate culture conducive to continuous quality improvement? 10. Are your employees provided with adequate and relevant training?
  12. 12. TQM : THE SYSTEM MODEL 1. Social System    Corporate culture     Teamwork Personal Quality Employee participation and development Empowerment Reward and recognition system Communication
  13. 13. 2. Technical System     Technology Work processes Decision-making processes Job definition and responsibilities 3. Management System      Strategic quality planning Leadership Policies Organizational structure Managerial control
  14. 14. TOTAL QUALITY MANAGEMENT MODEL Process Improvement • • • • Quality Management System Strategic Quality Management SWOT Analysis • Corporate Goals Customer Survey • Corporate Values • Departmental Purpose Benchmarking Analysis Mission Statement • ISO 9000 • Process Reengineering Top Management's Visible Commitment • • • • Corporate Quality Council Allocating Resources for QIPs Monitoring Quality Role Modelling • Technology • Quality Improvement • Personal Quality • Empowerment • Training • Teamwork Projects • Measurement & Human Resource Management • Open & Honest Communication Evaluation • Corrective Action • Reward & Recognition System Continuous Improvement
  15. 15. TOTAL QUALITY MANAGEMENT MODEL CUSTOMER-ORIENTED SELF-RENEWAL (Physical, Mental, Spiritual, Social) C O N T I N U O U S I M P R O V E M E N T GETTING ORGANIZED • Top Management’s Commitment • Organizational Quality Awareness • Quality Management Structure • • • • ORGANIZATIONAL DIAGNOSIS SWOT Analysis Key Business Processes Benchmarking Quality Improvement Opportunities ORGANIZATIONAL QUALITY PLAN • Mission Statement & Quality Goals • Strategies & Quality Indicators • Quality Improvement Projects IMPLEMENTATION • Process Management • Coordination • Communication REVIEW PROGRESS • Measurement • Reporting Results • Corrective Action QUALITY CULTURE T R A I N I N G & T E A M W O R K R E S I L I E N C E
  16. 16. IMPORTANCE OF TOTAL QUALITY LEADERSHIP 1. Management is responsible for 80-85% of all quality problems. 2. Actions of employees greatly depend on top management’s attitude towards quality. 3. Top management determines the various systems in which people work.
  17. 17. FIVE PRACTICES OF EXEMPLARY LEADERSHIP 1. Model the Way   Find your voice by clarifying your personal values Set the example by aligning actions with shared values 2. Inspire a Shared Vision   Envision the future by imagining exciting and ennobling possibilities Enlist others in a common vision by appealing to shared aspirations
  18. 18. 3. Challenge the Process  Search for opportunities by seeking innovative ways to change, grow, and improve  Experiment and take risks by constantly generating small wins and learning from mistakes 4. Enable Others to Act  Foster collaboration by promoting cooperative goals and building trust  Strengthen others by sharing power and discretion
  19. 19. 5. Encourage the Heart  Recognize contributions by showing appreciation for individual excellence  Celebrate the values and victories by creating a spirit of community  J. M. Kouzes & B. Z. Posner
  20. 20. TOP MANAGEMENT’S ROLE IN TQM 1. Top Management’s Visible Commitment  Form high-powered steering committee to lead the quality initiative  Establish quality improvement as a major corporate goal   Benchmark world-class quality companies  Proper quality management structure Conceive and communicate the strategic quality plan
  21. 21.  Allocate adequate resources for quality improvement projects  Undergo quality training and cascade it down the organization    Walk the talk  Federal Express, Rank Xerox, Honda Motor Company Monitor quality performance Recognize and reward superior quality performance
  22. 22. 2. Strategic Quality Planning  SWOT Analysis  Clear, compelling and shared vision  Specific and verifiable key quality goals  Strategies for attaining vision and quality goals   Improving key business processes General Electric, Sony, Philip Morris
  23. 23. 3. Customer-Driven Organization  Undertake market research (opinion surveys and focus groups) to determine customers’ requirements  Prioritize needs and expectations of customers  Create customer-friendly and hassle-free service delivery systems
  24. 24.  Act quickly on customers’ complaints  Continuously listen to customers  Nordstrom, Rubbermaid, Walt Disney, Marriott
  25. 25. 4. Excellent Work Processes  Identify and improve major work processes  Eliminate unnecessary work procedures  Build quality into work processes  3M, Dell Computer, Motorola, Duke Power
  26. 26. 5. Quality Culture  Customer-focus  Doing the right things right the first time and every time  Open and honest communication  Teamwork  Basing rewards on performance  Procter & Gamble, Hewlett-Packard, General Electric, Nordstrom
  27. 27. 6. Teamwork  Break down departmental barriers  Establish cross-functional quality improvement teams  Quality Circles  Ford, Saturn Corporation, General Electric, Boeing, 3M
  28. 28. 7. Motivating and Empowering People  Hire the right people  Provide relevant and adequate training  Encourage employee participation (Quality Circles and Quality Improvement Teams)  Push decision making to the lowest practical level  Employee suggestion schemes
  29. 29.  Challenging jobs  Regard employees as internal customers  Provide specific and timely performance feedback  Federal Express, Dana Corporation, Toyota, Milliken, General Electric, Wal-Mart, Johnson & Johnson
  30. 30. 8. Performance Management System  Establish customer-oriented, challenging and verifiable performance standards  Mutually agreed upon by management and employees  Measure performance  Take corrective action  General Electric, Federal Express, Motorola
  31. 31. 9. Rewards and Recognition  Clear recognition and criteria  Link rewards directly with performance  Catch people doing things right  Recognize both individual and team achievements reward
  32. 32.  Monetary benefits (bonuses, pay increase, sharing) profit  Non-monetary recognition (congratulatory notes, mementos, special lunches or dinners)  Exxon Chemicals Ltd. UK, Rank Xerox
  33. 33. 10. Learning Organization  Training and retraining  Start with senior management and cascade down the organization  Encourage risk-taking and toleration of mistakes  Promote rapid sharing of information  Federal Express, Singapore Airlines, Motorola
  34. 34. 11. Being Innovative, Responsive and Adaptive  Anticipate and adapt quickly to changing situations  Encourage employees to challenge the status quo  Treat information as the main strategic advantage  Southwest Airlines, IBM, 3M, Samsung
  35. 35. 12. Modelling the Way  Honest, competent and inspiring  Walk your talk  Open to constructive criticism  Agent of change  Lifelong learner  Herb Kelleher, Sam Walton, Jack Welch
  36. 36. STRATEGIC QUALITY PLANNING  Organizational Vision and Mission Statement  Key Quality Goals  Strategies for attaining Vision and Quality Goals  Serving customers’ real needs
  37. 37. EXAMPLE OF AN EFFECTIVE VISION STATEMENT McDonald’s vision is to be the world’s best quick service restaurant experience. Being the best means providing outstanding quality, service, cleanliness, and value, so that we make every customer in every restaurant smile.  McDonald
  38. 38. EXAMPLE OF AN EFFECTIVE VISION STATEMENT Our vision is to be earth’s most customer centric company; to build a place where people can come to find and discover anything they might want to buy online.  Amazon
  39. 39. EXAMPLES OF MISSION STATEMENTS Our mission is to provide any customer a means of moving people and things up, down, and sideways over short distances with higher reliability than any similar enterprise in the world.  Otis Elevator To deliver a high-quality pizza, hot, within 30 minutes, at a fair price.  Domino’s Pizza
  40. 40. WHAT IS A QUALITY CULTURE? A Quality Culture is a system of shared values, beliefs and norms that are conducive for creating a Total Quality Organization.
  41. 41. CORE VALUES OF A QUALITY CULTURE  Customer focus  Doing the right things right the first time  Open and honest communication  Teamwork  Employee involvement and empowerment
  42. 42.  Creative and fact-based problem solving  Continuous improvement  Building quality into work processes  Basing rewards and promotions on quality work  Responding positively to change
  43. 43. STEPS IN CREATING AND SUSTAINING A QUALITY CULTURE 1. Recognizing the need for change  Compelling reasons for culture change  Broad desired outcomes  Leaders should create a sense of urgency  Formulate a compelling and clear organizational vision
  44. 44. 2. Diagnosing existing organizational culture  How is quality viewed?  Current values, beliefs and norms to be retained  Current values, beliefs and norms to be changed  Involve all stakeholder groups (managers, employees, customers)
  45. 45. 3. Determining the desired culture which supports organizational vision and strategy  Specify acceptable and unacceptable behaviours  Close gaps between current and desired organizational culture  Ensure new culture is aligned with organizational vision and strategy
  46. 46. 4. Communicating the desired culture to all organizational members  Few and compelling messages  Centred upon organizational vision, goals and core values 5. Modelling of desired behaviour by leaders  Leaders model desired behaviour in what they say and do
  47. 47. 6. Conducting appropriate training to imbibe new culture  Start with top management and cascade down the organization  Related to actual work performed by employees and desired culture 7. Reinforcing the desired behaviour  Recognition and reward systems
  48. 48. 8. Evaluating progress towards desired culture  Continually monitor and evaluate cultural change efforts  Take corrective action (if necessary)