Total Quality Management Ik

SRI RAMAKRISHNA INSTITUTE OF TECHNOLOGY
[An Autonomous Institution]
[Educational Service : SNR Sons Charitable Trust]
[Accredited by NBA and Accredited by NAAC with ‘A’ Grade]
[Approved by AICTE and Permanently Affiliated to Anna University, Chennai]
DEPARTMENT OF MECHANICAL
ENGINEERING

UMGG003 -TOTAL QUALITY MANAGEMENT

Course Objectives
 To determine the voice of the customer and the impact of quality
on economic performance and long-term business success of an
organization.
 To apply and evaluate best practices for the attainment of total
quality.
 To expose the students to the quality management systems and
standards.

Course Content
 Quality, TQM framework, Customer Focus, Customer retention, Product and
service quality, Quality Cost,, Taguchi techniques, Quality circle, Japanese 5S
principles and 8D methodology.
 Statistical process control, Control charts, Process capability, Six sigma,
Reliability, and Business process re-engineering (BPR). Tools And Techniques for
Quality Management - Quality Functions Deployment (QFD), Failure Mode Effect
Analysis (FMEA), Total Productivity Maintenance (TPM).
 Quality management systems, IS/ISO 9000, Performance improvements, Quality
Audits, TQM culture, Leadership, Quality council, Employee involvement,
Motivation, Empowerment, Recognition and Reward

1. What is TQM ?
 It is the art of managing the whole to achieve excellence,
 TQM is defined both a philosophy and a set of guiding principles
that represent the foundation of a continuously improving
organization.
 TQM is for the most part common sense. Analyzing
the three words, we have
Total—Made up of the whole.
Quality—Degree of excellence a product or service provides.
Management—Act, art, or manner of handling, controlling,
directing, etc.

Total Quality Management
 It is the application of quantitative methods and human
resources to improve all the processes within an organization
and exceed customer needs now and in the future”.
 TQM integrates fundamental management techniques, existing
improvement efforts, and technical tools under a disciplined
approach.

TQM – Defined
 The quality of a product is reflected by the feedback given by
the customer after use.
 Any organization intends to have continuous feedback to
enable product / service improvement.
 All giant size organizations in the manufacturing sector will have
quality in action by efforts in multifarious dimensions.
 “A core definition of total quality management (TQM) describes a
management approach to long-term success through
customer satisfaction. In a TQM effort, all members of an
organization participate in improving processes, products,
services, and the culture in which they work”.

 “The standard of something as measured against other
things of a similar kind; the degree of excellence of
something.”
 “A distinctive attribute or characteristic possessed by
someone or something.”

EVOLUTION OF THE CONCEPT
Quality is defined in several dimensions,
1. Quality is “fit for use”, it is control & it means assurance.
2. Quality is expected to derive greater consumer satisfaction. It will yield
higher returns. Quality reflects reliability & effectiveness – i.e., doing
right thing right. Quality means consistency.
3. Quality will address customer wants & needs at a lower cost.
4. Quality is addressed by change in dimensions such as technology,
society, economic and political. Quality is sure to help predict customer
needs.

6. Quality is a characteristic of a product or service that
satisfies customer needs.
7. A quality product is free of deficiencies. Quality is
“conformation to requirement”.
8. This means that no quality leads to non-performance. Hence
quality is a customer determination based on experience of a
product or service.
9. There are different types of quality problems at different stages
in production and after completing the production of final
product.

 At first quality problems emerge in the design stage. An
assessment has to be made to examine whether the product has
been designed to meet the customer needs – real or perceived or
both.
 The next phase is to examine quality in terms of conformance
i.e.whether the product produced has met the requirements set forth
by the customer.
 Further, the next phase is performance. Customers would examine
whether the product/service is performing as intended or identified by
customer.
 To sum up, there are three types of quality issues at design,
conformance & in performance phases of a product. Quality also
has to be assessed as efficiency in operation with minimum of
resources. The size or volume, cost & lead time of production and
delivery matters here.

Lets get to know
What is Quality ?
 When the expression “quality” is used, we usually think in
terms of an excellent product or service that fulfills or
exceeds our expectations.
 These expectations are based on the intended use and the
selling price. For example,
 a customer expects a different performance from a
plain steel washer than from a chrome-plated steel
washer because they are a different grade.
 When a product surpasses our expectations we
consider that quality. Thus, it is somewhat of an
intangible based on perception. Quality can be
quantified as follows:

Q = P / E
where Q = quality
 P = performance
 E = expectations
 If Q is greater than 1.0, then the customer has a good
feeling about the product or service. Of course, the
determination
 of P and E will most likely be based on perception
with the organization determining performance and
the customer determining expectations.

The Dimensions of Quality- Dimension Meaning and Example
1. Performance- Primary product characteristics, such as the brightness
of the picture
2. Features - Secondary characteristics, added features, such as remote
control
3. Conformance -Meeting specifications or industry standards,
workmanship
4. Reliability- Consistency of performance over time, average time for the
unit to fail
5. Durability- Useful life, includes repair
6. Service- Resolution of problems and complaints, ease of repair
7. Response - Human-to-human interface, such as the courtesy of the
dealer

 A more definitive definition of quality is given in ISO
9000: 2000.
“It is defined as the degree to which a set of inherent
characteristics fulfills requirements” .
 Degree means that quality can be used with adjectives such as poor, good, and
excellent.
 Inherent is defined as existing in something, especially as a permanent
characteristic.
 Characteristics can be quantitative or qualitative. Requirement is a need or
expectation that is stated; generally implied by the organization, its customers,
and other interested parties; or obligatory.

 These dimensions are somewhat independent; therefore, a product
can be excellent in one dimension and average or poor in another.
Very few, if any, products excel in all nine dimensions.
 For example, the Japanese were cited for high-quality cars in the
1970s based only on the dimensions of reliability, conformance, and
aesthetics. Therefore, quality products can be determined by using a
few of the dimensions of quality.
 Marketing has the responsibility of identifying the relative importance
of each dimension of quality.
 These dimensions are then translated into the requirements for the
development of a new product or the improvement of an existing one.

TQM requires six basic concepts:
1. A committed and involved management to provide long-term
top-to-bottom organizational support.
2. An unwavering focus on the customer, both internally and
externally.
3. Effective involvement and utilization of the entire work force.
4. Continuous improvement of the business and production
process.
5. Treating suppliers as partners.
6. Establish performance measures for the processes

 These concepts outline an excellent way to run an organization.
A brief paragraph on each of them is given,
1. Management must participate in the quality program. A quality
council must be established to develop a clear vision, set long-term
goals, and direct the program. Quality goals are included in the
business plan.
An annual quality improvement program is established and involves
input from the entire work force.
Managers participate on quality improvement teams and also act as
coaches to other teams. TQM is a continual activity that must be
entrenched in the culture—it is not just a one-shot program. TQM
must be communicated to all people.

2. The key to an effective TQM program is its focus on the customer. An
excellent place to start is by satisfying internal customers.
We must listen to the “voice of the customer” and emphasize design
quality and defect prevention.
Do it right the first time and every time, for customer satisfaction is the
most important consideration.

3. TQM is an organization-wide challenge that is everyone’s
responsibility. All personnel must be trained in TQM, statistical
process control (SPC), and other appropriate quality improvement
skills so they can effectively participate on project teams.
 Including internal customers and, for that matter, internal suppliers on
project teams is an excellent approach.
 Those affected by the plan must be involved in its development and
implementation.
 They understand the process better than anyone else. Changing
behavior is the goal.
 People must come to work not only to do their jobs, but also to think
about how to improve their jobs. People must be empowered at the
lowest possible level to perform processes in an optimum manner.

4. There must be a continual striving to improve all business and
production processes.
 Quality improvement projects, such as on-time delivery, order
entry efficiency, billing error rate, customer satisfaction, cycle
time, scrap reduction, and supplier management, are good
places to begin.
 Technical techniques such as SPC, benchmarking, quality
function deployment, ISO 9000, and designed experiments are
excellent for problem solving.

5. On the average 40% of the sales dollar is purchased product or
service; therefore, the supplier quality must be outstanding.
 A partnering relationship rather than an adversarial one must be
developed.
 Both parties have as much to gain or lose based on the success
or failure of the product or service.
 The focus should be on quality and life-cycle costs rather than
price. Suppliers should be few in number so that true partnering
can occur

6. Performance measures such as uptime, percent nonconforming,
absenteeism, and customer satisfaction should be determined
for each functional area.
 These measures should be posted for everyone to see.
Quantitative data are necessary to measure the continuous
quality improvement activity.

Summarize- Purpose of TQM
 The purpose of TQM is to provide a quality product and/or
service to customers, which will, in turn, increase productivity
and lower cost.
 With a higher quality product and lower price, competitive
position in the marketplace will be enhanced.
 This series of events will allow the organization to achieve the
objectives

Let’s get to know
lead time is the time between the initiation
and delivery of a work item.
cycle time is the time between two successive
deliveries
throughput is the rate at which items are
passing through the system.
WIP – Work in progress; the number of work
items in the system. Work that has been
started, but not yet completed

History of TQM
 The TQM concept was developed by American management
consultants, including W. Edwards Deming, Joeseph Juran, and
A.V. Feigenbaum.
 Originally, Japan embraced the ideas of quality management and
continuous improvement introduced by American consultants
following World War II.
 Toyota adopted these practices and developed strategies unique
to Japanese culture to create the Toyota Production System, the
basis for Lean manufacturing.
 As Japanese electronics and automotive companies boomed,
industries in the United States were struggling to keep up.

 The solution was total quality management, a specific quality
management approach developed in the 1970s and 1980s.
 TQM in the US Federal Government began in 1985 when the
United States Navy adopted Deming’s teachings and named it
Total Quality Management.
 The Department of Defense, United States Army, the Coast
Guard, and the EPA eventually followed by adopting elements of
TQM, setting the stage for companies to begin implementation.

Quality gurus
 Quality has been perceived in several ways by quality gurus.
 The perception of quality was set by post Second World War effects
wherein standards were set for a product depending on requirement
of Defense military standard that came into existence and these set
forth some bench marks of quality.
 The present discussion enumerates perception of quality by leading
quality gurus since 1950.
 The contribution of J.M.Juran, Edward Deming, Philop Crosby,
Thaguchi, Ishikawa, Shewhart and others are examined in
detail.

 Juran (1950) in his quality control hand book perceives
quality in the form of triology – Planning, Improvement &
Control.
 Planning is considered as preparation for the process to meet
the quality goals, planning for inputs will dictate the size, value &
staggered time needs of inputs.
 Quality at the input stage would enable the process perform its
task. In the process stage, meeting of quality goals can be
achieved during operation. The process becomes smoother due
to efforts of quality at the input stage.

 Improvement in the performance of the product to unprecedented
levels can be achieved by inducting efficiency at each phase of the
process.
 The life of the product could be an improvement parameter. Cost
reduction by producing no defects at each phase may result in
improvement of performance.
 Thus improvement on a continuous note would take care of quality
issues concerning the product.
 Juran further concentrates on two other aspects of trilogy. The
external customers and the internal customers form the base of
the expanded trilogy; while the external customers use the
product & provide feedback, internal customer use the feedback
for improvement of the product.

 Thus quality is considered a process of planning, improvement &
control, on a continuous basis (Kaizen).
 Juran underlines steps for quality improvement based on triology and
adherence to feedback of customers.
The steps are:
“1)Building awareness of the need for quality for improvement;
2)Set the goals for improvement;
3)Organize to reach the goals;
4)Provide training throughout the organization;

5)Carrying out projects to solve problems;
6)Report progress;
7)Give recognitions;
8)Communicate results;
9)Keep scores &
10)Maintaining momentum by making actual improvements
apart or regular systems & processes of the company”.
 Juran believed that a change in product towards quality will
increase cost, reduces waste and will lead to better performance.

 Joseph Moses Juran (December
24, 1904 – February 28, 2008)
was a Romanian-
born American engineer and
management consultant.
 He was an evangelist
for quality and quality
management, having written
several books on those subjects.

“Quality is not what happens when what you do
matches your intentions.
It is what happens when what you do matches
your customers' expectations. ”

Customer focus & Retention
 Customer focus is a strategy that puts customers at
the center of business decision-making.
 Customer-focused businesses make decisions based
on how those decisions impact customers — as
opposed to focusing on profits above all else. It’s a
long-term strategy that develops loyalty and builds
trust.
 Customer-focused companies dedicate their efforts to
uncovering and meeting customers’ needs, delivering
excellent customer service, and incorporating
customer feedback into product design and other
business decisions.

 The rewards of customer focus are two-fold:
1. Engaging for your customers: Your customers want to be
listened to. According to research by Salesforce, 62% of
customers expect companies to adapt based on their actions,
feedback, and behaviors. If you aren’t listening, your
customers will find someone who will.
1. Good for your business: Because of the numerous benefits
that customer focus brings to your business, you’ll be more
successful overall. In fact, customer-centric companies
are 60% more profitable than companies that do not make
decisions with a customer focus.
 Making decisions based on your customers’ needs and goals
puts you in a better position to build relationships, help
customers become successful, and adapt to changes in the
market.

 Customer retention refers to the ability of a company or product to
retain its customers over some specified period.
 High customer retention means customers of the product or
business tend to return to, continue to buy or in some other way not
defect to another product or business, or to non-use entirely. Selling
organizations generally attempt to reduce customer defections.
 Customer retention starts with the first contact an organization has
with a customer and continues throughout the entire lifetime of a
relationship and successful retention efforts take this entire lifecycle
into account.
 A company's ability to attract and retain new customers is related not
only to its product or services, but also to the way it services its
existing customers, the value the customers actually perceive as a
result of utilizing the solutions, and the reputation it creates within
and across the marketplace.

 Successful customer retention involves more than giving
the customer what they expect.
 Generating loyal advocates of the brand might mean
exceeding customer expectations.
 Creating customer loyalty puts 'customer value rather than
maximizing profits and shareholder value at the center of
business strategy'.
 The key differentiation in a competitive environment is
often the delivery of a consistently high standard
of customer service. Furthermore, in the emerging world
of Customer Success, retention is a major objective

Price your product or service
 The price you charge for your product or service is one of the
most important business decisions you make. Setting a price that
is too high or too low will - at best - limit your business growth.
 At worst, it could cause serious problems for your sales and cash
flow.
 If you're starting a business, carefully consider your pricing
strategy before you start.
 Established businesses can improve their profitability through
regular pricing reviews.
 When setting your prices you must make sure that the price and
sales levels you set will allow your business to be profitable.
 You must also take note of where your product or service stands
when compared with your competition.

The difference between cost and value
 Knowing the difference between cost and value can increase
profitability:
 the cost of your product or service is the amount you spend to
produce it
 the price is your financial reward for providing the product or
service
 the value is what your customer believes the product or service
is worth to them
For example, the cost for a plumber to fix a burst pipe at a
customer's home may be $5 for travel, materials costing $5 and
an hour's labour at $30. However, the value of the service to
the customer - who may have water leaking all over their house
- is far greater than the $40 cost, so the plumber may decide to
charge a total of $100.

 Pricing should be in line with the value of the benefits that your
business provides for its customers, while also bearing in mind
the prices your competitors charge.
 To maximise your profitability, find out:
 what benefits your customers gain from using your product or
service
 the criteria your customers use for buying decisions - for
example, speed of delivery, convenience or reliability
 what value your customers place on receiving the benefits you
provide
 Wherever possible, set prices that reflect the value you provide -
not just the cost.

Covering fixed and variable costs
 Every business needs to cover its costs in order to make a
profit. Working out your costs accurately is an essential part of
working out your pricing.
Divide your costs under two headings:
 fixed costs are those that are always there, regardless of how
much or how little you sell, for example rent, salaries and
business rates
 variable costs are those that rise as your sales increase, such
as additional raw materials, extra labour and transport
 When you set a price, it must be higher than the variable cost of
producing your product or service. Each sale will then make a
contribution towards covering your fixed costs - and making

Product cost refers to the costs incurred to create a product. These costs
include direct labor, direct materials, consumable production supplies, and
factory overhead. Product cost can also be considered the cost of the labor
required to deliver a service to a customer. In the latter case, product cost
should include all costs related to a service, such as compensation, payroll
taxes, and employee benefits.
The cost of a product on a unit basis is typically derived by compiling the
costs associated with a batch of units that were produced as a group, and
dividing by the number of units manufactured. The calculation is:
(Total direct labor + Total direct materials + Consumable supplies + Total
allocated overhead) ÷ Total number of units
= Product unit cost

 For example, a car dealership has variable costs
of $18,000 per car sold and total fixed costs of
$400,000 a year that must be covered.
 If the company sells 80 cars each year, it needs a
contribution towards the fixed costs of at least
$5,000 per car ($400,000 divided by 80) to avoid
making a loss.

lets get to know - William
Edwards Deming

 William Edwards Deming (October 14, 1900 – December
20, 1993) was an American engineer, statistician, professor,
author, lecturer, and management consultant.
 Educated initially as an electrical engineer and later
specializing in mathematical physics, he helped develop
the sampling techniques still used by the U.S. Department
of the Census and the Bureau of Labor Statistics. In his
book The New Economics for Industry, Government,
and Education, Deming championed the work of Walter
Shewhart, including statistical process control, operational
definitions, and what Deming called the "Shewhart Cycle,“
which had evolved into Plan-Do-check-Act (PDCA).

 Deming is best known for his work in Japan after WWII,
particularly his work with the leaders of Japanese industry.
 That work began in July and August 1950, in Tokyo and at
the Hakone Convention Center, when Deming delivered
speeches on what he called "Statistical Product Quality
Administration".
 Many in Japan credit Deming as one of the inspirations for
what has become known as the Japanese post-war
economic miracle of 1950 to 1960, when Japan rose from
the ashes of war on the road to becoming the second-largest
economy in the world through processes partially influenced
by the ideas Deming taught:

 Better design of products to improve service
 Higher level of uniform product quality
 Improvement of product testing in the workplace and in research
centers
 Greater sales through side [global] markets
 Deming is best known in the United States for his 14 Points (Out of
the Crisis, by W. Edwards Deming, preface) and his system of
thought he called the "System of Profound Knowledge". The
system includes four components or "lenses" through which to
view the world simultaneously:
 Appreciating a system
 Understanding variation
 Psychology
 Epistemology, the theory of knowledge[5]

 W.E.Deming developed three basic precepts for quality
outlooks.
 The emphasis was on customer orientation, continuous
improvement and quality as determined by the system.
These precepts have its roots in seven deadly identified
diseases in an organizational setting:
 “1. Lack of constancy of purpose; 2. Emphasizing short
terms profits & immediate dividends; 3. Evaluation of
performance – rating / annual review; 4.Mobility of top
management; 5. Running a company only on visible
figures; 6. Excessive medical cost; & 7. Excessive cost of

 This stay would enable better provision of jobs. Deming, in order to
bring about continuous improvement of quality, introduced Plan-Do-
Check-Act (PDCA) cycle for products.
 Plan-Do-Check-Act would enable spiral growth of the quality as
reflected in the final products delivered.
 Deming envisaged fourteen principles, which would enable an
organization to make TQM a life time effort.

PLAN-DO-CHECK-ACT (PDCA)
CYCLE
 The Plan-do-check-act cycle is a four-step model
for carrying out change.
 Just as a circle has no end, the PDCA cycle
should be repeated again and again
for continuous improvement.
 The PDCA cycle is considered a project planning
tool.

The Plan-do-check-act Procedure
Plan: Recognize an opportunity and plan a
change.
Do: Test the change. Carry out a small-
scale study.
Check: Review the test, analyze the
results, and identify what you’ve learned.
Act: Take action based on what you
learned in the study step. If the change did
not work, go through the cycle again with a
different plan. If you were successful,
incorporate what you learned from the test
into wider changes. Use what you learned
to plan new improvements, beginning the
cycle again.

The Deming principles are:-
 Deming’s philosophy is given in his 14 points. Most of these
points were given in a seminar for 21 Presidents of leading
Japanese industry in 1950. The rest were developed and the
original ones modified over a period of three decades.

1. Create constancy of purpose toward improvement of
product and service- aim to become competitive and to stay
in business, and to provide jobs.
 Management must demonstrate constantly their commitment
to this statement. It must include investors, customers,
suppliers, employees, the community, and a quality
philosophy.
 The statement is a foreverchanging document that requires
input from everyone. Organizations must develop a long-term
view of at least ten years and plan to stay in business by
setting long-range goals. Resources must be allocated for
research, training, and continuing education to achieve the
goals.
 Innovation is promoted to ensure that the product or service
does not become obsolete. A family organizational
philosophy is developed to send the message that everyone
is part of the organization.

2. Learn the New Philosophy
 Top management and everyone must learn the new philosophy.
Organizations must seek never-ending improvement and refuse to
accept nonconformance. Customer satisfaction is the number one
priority, because dissatisfied customers will not continue to
purchase nonconforming products and services.
 The organization must concentrate on defect prevention rather than
defect detection. By improving the process, the quality and
productivity will improve.
 Everyone in the organization, including the union, must be involved
in the quality journey and change his or her attitude about quality.
 The supplier must be helped to improve quality by requiring
statistical evidence of conformance and shared information relative
to customer expectations.

3. Understand the Purpose of Inspection- Cease dependence on
inspection to achieve quality.
Eliminate the need for inspection on a mass basis by building
quality into the product in the first place.
 Management must understand that the purpose of inspection is to
improve the process and reduce its cost.
 For the most part, mass inspection is costly and unreliable. Where
appropriate, it should be replaced by neverending improvement
using statistical techniques.
 Statistical evidence is required of self and supplier. Every effort
should be made to reduce and then eliminate acceptance
sampling. Mass inspection is managing for failure and defect
prevention is managing for success.

Let’s get to know
 Acceptance sampling uses statistical sampling to determine whether
to accept or reject a production lot of material. It has been a
common quality control technique used in industry.
 It is usually done as products leaves the factory, or in some cases even
within the factory. Most often a producer supplies a consumer a number
of items and a decision to accept or reject the items is made by
determining the number of defective items in a sample from the lot. The
lot is accepted if the number of defects falls below where the
acceptance number or otherwise the lot is rejected.
 In general, acceptance sampling is employed when one or several of
the following hold:
 testing is destructive;
 the cost of 100% inspection is very high; and
 100% inspection takes too long.

4. Stop Awarding Business Based on Price Alone
 The organization must stop awarding business based on the low
bid, because price has no meaning without quality.
 The goal is to have single suppliers for each item to develop a
long-term relationship of loyalty and trust, thereby providing
improved products and services. Purchasing agents must be
trained in statistical process control and require it from suppliers.
 They must follow the materials throughout the entire life cycle in
order to examine how customer expectations are affected and
provide feedback to the supplier regarding the quality.

5. Improve Constantly and Forever the
System of Production and Service
 Management must take more
responsibility for problems by actively
finding and correcting problems so that
quality and productivity are continually
and permanently improved and costs are
reduced.
 The focus is on preventing problems
before they happen. Variation is
expected, but there must be a continual
striving for its reduction using control
charts.
 Responsibilities are assigned to teams to
remove the causes of problems and
continually improve the process.

6. Institute of training
 Train for consistency to help reduce variation.
 Build a foundation of common knowledge.
 Allow workers to understand their roles in the "big picture."
 Encourage staff to learn from one another, and provide a culture and
environment for effective teamwork.
7. Teach and Institute Leadership
 Improving supervision is management’s responsibility. They must provide
supervisors with training in statistical methods and these 14 points so the
new philosophy can be implemented.
 Instead of focusing on a negative, fault-finding atmosphere, supervisors
should create a positive, supportive one where pride in workmanship can
flourish.
 All communication must be clear from top management to supervisors to
operators

8. Drive Out Fear, Create Trust, and Create a Climate for Innovation
 Management must encourage open, effective communication and
teamwork. Fear is caused by a general feeling of being powerless to
control important aspects of one’s life.
 It is caused by a lack of job security, possible physical harm,
performance appraisals, ignorance of organization goals, poor
supervision, and not knowing the job. Driving fear out of the workplace
involves managing for success. Management can begin by providing
workers with adequate training, good supervision, and proper tools to do
the job, as well as removing physical dangers.
 When people are treated with dignity, fear can be eliminated and people
will work for the general good of the organization. In this climate, they
will provide ideas for improvement.

9. Optimize the Efforts of Teams, Groups, and Staff Areas
 Management must optimize the efforts of teams, work groups, and staff
areas to achieve the aims and purposes of the organization. Barriers
exist internally among levels of management, among departments,
within departments, and among shifts. Externally, they exist between the
organization and its customers and suppliers.
 These barriers exist because of poor communication, ignorance of the
organization’s mission, competition, fear, and personal grudges or
jealousies. To break down the barriers, management will need a long-
term perspective.
 All the different areas must work together. Attitudes need to be changed;
communication channels opened; project teams organized; and training
in teamwork implemented. Multifunctional teams, such as used in
concurrent engineering, are an excellent method.

10. Eliminate Exhortations for the Work Force
 Eliminate slogans, exhortations, and targets for the work
force asking for zero defects and new levels of productivity.
 Such exhortations only create adversarial relationships, as
the bulk of the causes of low quality and low productivity
belong to the system and thus lie beyond the power of the
work force.
 Exhortations that ask for increased productivity without providing
specific improvement methods can handicap an organization. They
do nothing but express management’s desires. They do not
produce a better product or service, because the workers are
limited by the system.
 Goals should be set that are achievable and are committed to the
long-term success of the organization. Improvements in the
process cannot be made unless the tools and methods are
available.

11a. Eliminate Numerical Quotas for the Work Force
 Instead of quotas, management must learn and institute methods for
improvement. Quotas and work standards focus on quantity rather than
quality. They encourage poor workmanship in order to meet their quotas.
Quotas should be replaced with statistical methods of process control.
Management must provide and implement a strategy for never-ending
improvements and work with the work force to reflect the new policies.
11b. Eliminate Management by Objective
 Instead of management by objective, management must learn the
capabilities of the processes and how to improve them. Internal goals set
by management, without a method, are a burlesque. Management by
numerical goal is an attempt to manage without knowledge of what to do.
An excellent analysis supporting this point is given by Castellano and
Roehm.*
 *Joseph F. Castellano and Harper A. Roehm, “The Problems With
Managing By Objectives and Results.” Quality Progress (March 2001): 39–
46.

12. Remove Barriers That Rob People of Pride of
Workmanship
 Loss of pride in workmanship exists throughout
organizations because (1) workers do not know how to
relate to the organization’s mission, (2) they are being
blamed for system problems, (3) poor designs lead to the
production of “junk,” (4) inadequate training is provided, (5)
punitive supervision exists, and (6) inadequate or
ineffective equipment is provided for performing the
required work. Restoring pride will require a long-term
commitment by management.

 When workers are proud of their work, they will grow to the
fullest extent of their job.
 Management must give employees operational job
descriptions, provide the proper tools and materials, and
stress the workers’ understanding of their role in the total
process.
 By restoring pride, everyone in the organization will be
working for the common good. A barrier for people on
salary is the annual rating of performance.

13. Encourage Education and Self-Improvement for
Everyone
 What an organization needs is people who are improving
with education. A long-term commitment to continuously
train and educate people must be made by management.
 Deming’s 14 points and the organization’s mission should
be the foundation of the education program. Everyone
should be retrained as the organization requirements
change to meet the changing environment.

14. Take Action to Accomplish the Transformation
 Management has to accept the primary responsibility for
the never-ending improvement of the process.
 It has to create a corporate structure to implement the
philosophy. A cultural change is required from the previous
“business as usual” attitude. Management must be
committed, involved, and accessible if the organization is
to succeed in implementing the new philosophy. Hillerich &
Bradsby Co., the makers of the Louisville Slugger baseball
bat, have used Deming’s 14 points since 1985 and now
have 70% of the professional baseball bat market.

Abraham Maslow
 His theory rested on these assumptions.
 Physiological needs;
 Safety or security needs
 Belongingness or social needs;
 Esteem or status needs
 Self actualization or self-fulfillment needs.
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 Abraham Harold Maslow (April 1, 1908 – June 8, 1970)
was an American psychologist who was best known for
creating Maslow's hierarchy of needs, a theory of
psychological health predicated on fulfilling innate
human needs in priority, culminating in self-actualization.
 Maslow was a psychology professor at Alliant
International University, Brandeis University, Brooklyn
College, New School for Social Research, and Columbia
University.
 He stressed the importance of focusing on the positive
qualities in people, as opposed to treating them as a
"bag of symptoms.“
 A Review of General Psychology survey, published in
2002, ranked Maslow as the tenth most cited
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 Maslow wanted to understand what motivates
people. He believed that people possess a set of
motivation systems unrelated
to rewards or unconscious desires.
 Maslow (1943) stated that people are motivated to
achieve certain needs, and that some needs take
precedence over others. Our most basic need is for
physical survival, and this will be the first thing that
motivates our behaviour. Once that level is fulfilled
the next level up is what motivates us, and so on.
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Maslow’s Need Hierarchy
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 Douglas Murray McGregor (1906 – 1 October
1964) was a management professor at the MIT
Sloan School of Management and president
of Antioch College from 1948 to 1954.
 He also taught at the Indian Institute of
Management Calcutta.
 His 1960 book The Human Side of Enterprise had
a profound influence on education practices.
 Douglas McGregor is a contemporary of Abraham
Maslow. Likewise, he also contributed much to the
development of the management and motivational
theory.
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 He is best known for his Theory X and Theory Y as
presented in his book ‘The Human Side of
Enterprise’ (1960), which proposed that
manager’s individual assumptions about human
nature and behaviour determined how individual
manages their employees
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Douglas Mcgregor
Theory X Theory Y
Most People dislike work Work is a natural activity like play.
Most People must be coerced
and threatened before they
work.
People are capable of self
direction and self control
Most people prefer to be
directed. They avoid
responsibility and have little
ambition.
People become committed to
organizational objectives if they
are rewarded in doing so.
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 McGregor's ideas suggest that there are two
fundamental approaches to managing people. Many
managers tend towards theory x, and generally get poor
results.
 Enlightened managers use theory y, which produces
better performance and results, and allows people to
grow and develop.
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Theory x ('authoritarian management' style)
 The average person dislikes work and will avoid it he/she
can.
 Therefore most people must be forced with the threat of
punishment to work towards organisational objectives.
 The average person prefers to be directed; to avoid
responsibility; is relatively unambitious, and wants
security above all else.
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Theory y ('participative management' style)
 Effort in work is as natural as work and play.
 People will apply self-control and self-direction in the
pursuit of organisational objectives, without external
control or the threat of punishment.
 Commitment to objectives is a function of rewards
associated with their achievement.
 People usually accept and often seek responsibility.
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 The capacity to use a high degree of imagination,
ingenuity and creativity in solving organisational
problems is widely, not narrowly, distributed in the
population.
 In industry the intellectual potential of the average
person is only partly utilised
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Herzberg’s Motivation Theory – Two
Factor Theory

 Herzberg’s Motivation Theory model goes by a number of
different names, including Two Factor Theory, Herzberg’s
Motivation-Hygiene Theory, and Duel Structure Theory.
 Frederick Herzberg developed the model in 1959. He did this by
interviewing over 200 professionals. The interviews delved into
when the interviewees were at their most and least happiest with
their jobs.

 Frederick Irving Herzberg (April 18, 1923 –
January 19, 2000) was an
American psychologist who became one of
the most influential names in business
management.
 He is most famous for introducing job
enrichment and the Motivator-Hygiene
theory. His 1968 publication "One More
Time, How Do You Motivate
Employees?" had sold 1.2 million reprints
by 1987 and was the most requested article
from the Harvard Business Review

 Herzberg’s Theory of Motivation tries to get to the root of
motivation in the workplace. You can leverage this theory
to help you get the best performance from your team.
1. Motivating Factors
 The presence of motivators causes employees to work
harder. They are found within the actual job itself.
2. Hygiene Factors
 The absence of hygiene factors will cause employees to
work less hard. Hygiene factors are not present in the
actual job itself but surround the job.

 The impact of motivating and hygiene factors is
summarized in the following diagram. .
 Note that you will often see motivators referred to as
factors for satisfaction, and hygiene factors referred to as
factors for dissatisfaction

Motivating factors include:
 Achievement: A job must give an employee a sense of
achievement. This will provide a proud feeling of having done
something difficult but worthwhile.
 Recognition: A job must provide an employee with praise and
recognition of their successes. This recognition should come from
both their superiors and their peers.
 The work itself: The job itself must be interesting, varied, and
provide enough of a challenge to keep employees motivated.
 Responsibility: Employees should “own” their work. They should
hold themselves responsible for this completion and not feel as
though they are being micromanaged.
 Advancement: Promotion opportunities should exist for the
employee.
 Growth: The job should give employees the opportunity to learn
new skills. This can happen either on the job or through more
formal training.

 Hygiene factors include:
 Company policies: These should be fair and clear to every employee.
They must also be equivalent to those of competitors.
 Supervision: Supervision must be fair and appropriate. The employee
should be given as much autonomy as is reasonable.
 Relationships: There should be no tolerance for bullying or cliques. A
healthy, amiable, and appropriate relationship should exist between peers,
superiors, and subordinates.
 Work conditions: Equipment and the working environment should be safe,
fit for purpose, and hygienic.
 Salary: The pay structure should be fair and reasonable. It should also be
competitive with other organizations in the same industry.
 Status: The organization should maintain the status of all employees within
the organization. Performing meaningful work can provide a sense of
status.
 Security: It is important that employees feel that their job is secure and they
are not under the constant threat of being laid-off

 Herzberg added a new dimension to this theory by
proposing a two-factor model of motivation, based on the
notion that the presence of one set of job characteristics
or incentives leads to worker satisfaction at work, while
another and separate set of job characteristics leads
to dissatisfaction at work.
 Thus, satisfaction and dissatisfaction are not on a
continuum with one increasing as the other diminishes,
but are independent phenomena.
 This theory suggests that to improve job
attitudes and productivity, administrators must recognize
and attend to both sets of characteristics and not assume
that an increase in satisfaction leads to decrease in

The Four Stats
 In a general sense, there are four states an organization or team
can find themselves in when it comes to Two Factor Theory.
1. High Hygiene and High Motivation
 This is the ideal situation and the one which every manager
should strive for. Here, all employees are motivated and have
very few grievances.
2. High Hygiene and Low Motivation
 In this situation, employees have few grievances but they are not
highly motivated. An example of this situation is where pay and
working conditions are competitive but the work isn’t very
interesting. Employees are simply there to collect their salary.
3. Low Hygiene and High Motivation
In this situation, employees are highly motivated but they have a
lot of grievances. A typical example of this situation is where the
work is exciting and really interesting but the pay and conditions
are behind competitors in the same industry.

 4. Low Hygiene and Low Motivation
 This is obviously a bad situation for an organization or team to
find itself in. Here, employees aren’t motivated and the hygiene
factors are not up to scratch.
 There is a two-step process to use the Two Factor Theory model
to increase the motivation of your team.
 Eliminate job hygiene stressors.
 Boost job satisfaction.

Examples of Stressors
 Rectify petty and bureaucratic company policies.
 Ensure each team member feels supported without feeling
micromanaged. You can do this by using servant leadership or
a democratic leadership style.
 Ensure the day to day working culture is supportive. No bullying.
No cliques. Everyone treated with equal respect.
 Ensure that salaries are competitive within the industry. Ensure
there are no major salary disparities between employees doing
similar jobs.
 To increase job satisfaction and status, aim to construct jobs in
such a way that each team member finds their job meaningful.

Boost Job Satisfaction
a. Job Enrichment
 Job enrichment means enriching a team member’s job by giving them
more challenging or complex tasks to perform. These more complex
tasks should make the job more interesting.
b. Job Enlargement
 Job enlargement means giving a team member a greater variety of
tasks to perform. This variety can also make a job more interesting.
 Note that with job enlargement the variety of tasks is increased, but not
the difficulty of those tasks. If difficulty increased then that would be job
enrichment.
c. Employee Empowerment
 Employee empowerment means deligating increasing responsibility to
each team member. This can be done by slowly increasing the amount
of responsibility you delegate to an employee.

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