The document discusses principles of total quality management (TQM) with a focus on leadership and supplier partnership. It outlines key characteristics of good leadership including vision, empowering people, and effective communication. Regarding supplier partnership, it emphasizes the importance of long-term commitment, trust, and shared vision between an organization and its suppliers. It also provides details on supplier selection criteria, certification processes, and strategies for developing strong customer-supplier relationships.

1. UNIT - 2
TQM PRINCIPLES

2. Leadership
The most important and critical issue
for quality system success.

3. Why need good leaders for total
quality management system?

4. What makes a good
leader/leadership?
• Vision
• Cohesion, synergy and collaboration
• Empower people
• Core values
• Shared values
• Ethics
• Proactive and problem prevention
• Communications

5. What leadership? (Core Values)
• Customer-driven quality
• Continuous improvement
• Human assets
• Prompt responses
• Upstream efforts
• Long term planning
• Objective decision making
• Partnership
• Responsibility and citizenship
• Results focus

6. Shared Values
• Truth and Honesty
• Trust
• Unselfishness
• Receptive
• Personal risks
• Credits to others
• Integrity
• Considerate to others

7. Leaders don't create followers,
they create more leaders.
Tom Peters in "Fast Company"

8. Effective Leadership, by David L.
Goetsch, Prentice Hall, 2005
Effective Leadership: Step 1-5
1. Develop a vision and commit to achieving it.
2. Project unquestionable integrity and selflessness.
3. Establish credibility and good stewardship.
4. Develop a can-do attitude and seek responsibility
5. Develop self-discipline, time management and
execution skills.

9. Effective Leadership, by David L.
Goetsch, Prentice Hall, 2005
Effective Leadership: Step 6-10
6. Be a creative problem solver and decision
maker.
7. Be a positive change agent.
8. Be an effective team builder.
9. Empower followers to lead themselves.
10. Be an effective conflict managers and
consensus builder

10. Role of senior management
• TQM implementation
• Quality council
• MBWA
• Decision making
• Strong information base
• Facilities and support
• Communication
• Time on quality
• Encourage
• Role model

11. Vision Statement
• Declaration
• Realistic picture
• Concise

12. Mission Statement
• Who we are?
• Who are the customers?
• What we do?
• How we do it?

13. Quality Policy Statement
• A general guide for everyone
• Approved by the CEO
• Awareness and implemented by everyone
• Required by ISO/QS 9000 standards for
quality systems.

37. +

43. TEAMS
• T- together
• E-each
• A-achieve
• M-more
• S-success

67. 5S
THE SECRET TO
JAPANESE SUCCESS

68. • WHAT PROBLEMS DO U COMMONLY
ENCOUNTER AT YOUR WORKPLACE
• HIGH ABSENTEEISM
• HIGH TURNOVER
• DEMOTIVATED EMPLOYEES
• DISORDERED/ CLUTTERED
ENVIRONMENT
• MISTAKES/ERRORS

69. • THE SOLUTION TO ALL THESE
PROBLEMS IS
5S

70. 5S
HOUSEKEEPING TECHNIQUE
PRODUCTIVITY AND SAFETY
ENHANCEMENT TECHNIQUE

71. IDEA BEHIND 5S
• IN ORDER TO ACHIEVE HIGH
LEVELS OF QUALITY, SAFETY,AND
PRODUCTIVITY, WORKERS MUST
HAVE A CONDUCIVE WORKING
ENVIRONMENT

72. WHAT IS 5S?
• Developed by the Japanese
• Housekeeping System
• Helps Create a Better Working
Environment and a Consistently
High Quality Process

73. THE 5S PRINCIPLES
• SEIRI – Organisation/Sort out
• SEITON – Orderliness/Systemize
• SEISO – The Cleaning/Shining
• SEIKETSU – STANDARDIZE
• SHITSUKE - Sustain/Discipline

74. DISCOVERY OF 5S
• Thirty years ago researchers started
studying the secret of success of
Japanese manufacturing companies
• 5S turned out to be the most
impressive "secret"
• The factories were so well organized
that abnormal situations were readily
apparent

75. DISCOVERY OF 5S
• Equipments were so clean and well
maintained that any problem such
as a loose bolt or leaking oil could
be easily seen
• This passion of cleanliness and
orderliness became a hallmark of
Japanese organizations

76. ADVANTAGES OF 5S
• If tools and materials are conveniently
located in uncluttered work areas
• Operators spend less time looking for
items
• This leads to higher workstation
efficiency, a fundamental goal in mass
production

77. ADVANTAGES OF 5S
• A clean and tidy workplace leads
to greater well being and increased
motivation
• Company image improves

78. ADVANTAGES OF 5S
• Health and Safety is ensured
• Machine maintenance
• Quality
• Productivity
• Lean Manufacturing

79. ADVANTAGES OF 5S
• RESULTS IN A PLACE EASIER TO
MANAGE
• SMOOTH WORKING NO
OBSTRUCTION
• NO DEVIATION, NO PROBLEMS
• B/C EVERYONE KNOWS WHERE THE
THINGS ARE SPPOSEDF TO BE

80. ADVANTAGES OF 5S
• TIME SAVING
• QUICK RETRIEVAL
• ACCIDENTS & MISTAKES
MINIMIZED
• INCREASES SPACE
• CREATES WORKPLACE
OWNERSHIP

81. ADVANTAGES OF 5S
• FOUNDATION OF ALL QC TOOLS
• CONTINUOUS QUALITY
IMPROVEMENT
• LEAN MANUFACTURING
• KINDERGARTEN OF QUALITY
TOOLS & TECHNIQUES

82. ADVANTAGES OF 5S
• VISUAL MANAGEMENT SYSTEM
• VISUAL CONTROL TO SEE THE
ABNORMALITIES
• SIMPLE SIGNALS THAT PROVIDE AN
UNDERSTANDING OF THE CONDITION(
NORMAL/ ABNORMAL)
• A LOOK AT THE PROCESS REVEALS ITS
DIRECTION (RIGHT/WRONG)

83. KINERGARTEN OF ALL THE QC
TOOLS
• 5S IS THE STARTING POINT OF
ALL THE QC TOOLS
• COULD BE SAID AS THE PRE-
REQUISITE OF ALL QC TOOLS

84. METHODOLOGY
OF 5S

85. 1. ORGANISATION(SEIRI)
• Decide what you need
• Remove unnecessary clutter
• All tools, gauges, materials, classified
and then stored
• Remove items which are broken,
unusable or only occasionally used

86. 2. ORDERLINESS(SEITON)
• ONCE YOU HAVE ELIMINATED ALL
THE UNNEEDED ITEMS
• NOW TURN TO THE LEFT OVER
ITEMS

87. ORDERLINESS(SEITON)
Organise layout of tools and
equipment
–Designated locations
–Use tapes and labels
–Ensure everything is
available as it is needed and
at the “point of use”

88. ORDERLINESS(SEITON)
Workplace Checkpoints:-
• Positions of aisles and storage places
clearly marked?
• Tools classified and stored by frequency
of use?
• Pallets stacked correctly?
• Safety equipment easily accessible?
• Floors in good condition?

89. 3. SEISO (CLEAN/SHINE)
• Create a spotless workplace
• Identify and eliminate causes of
dirt and grime – remove the need
to clean
• Sweep, dust, polish and paint

90. SEISO (CLEAN/SHINE)
• Divide areas into zones
• Define responsibilities for cleaning
• Tools and equipment must be owned by
an individual
• Focus on removing the need to clean

91. 4. SEIKETSU (STANDARDISE)
• Generate a maintenance system for the
first three
• Develop procedures, schedules,
practices
• Continue to assess the use and disposal
of items
• Regularly audit using checklists and
measures of housekeeping
• Real challenge is to keep it clean

92. 5. SHITSUKE (SUSTAIN /
DISCIPLINE)
• Means inoculate courtesy & good habits
• Driving force behind all 5S
• Deming’s point number 1: Constancy of
purpose
• Make it a way of life
• Part of health and safety
• Involve the whole workforce*
• Develop and keep good habits

93. SUPPLIER PARTNERSHIP

94. Organization and suppliers have the same goal – to satisfy
the end user.
 Working with supplier in a partnering atmosphere will yield high
quality product and services.
 In the 1980s procurement decisions were based on price,
awarding contracts to the lowest bidder, sacrificing the quality
and timely delivery
 Deming suggested that long term relationship of loyalty and trust
should be developed with the supplier to ensure improved
products & services.
 Just-in-Time (JIT) concept calls for raw materials and
components to be delivered in small quantities only when they
are required and not before.
INTRODUCTION

95. Partnering is a long-term commitment between two or more
organizations for the purpose of achieving specific business goals
& objectives.
 The relationship is based upon trust, dedication to common goals
and objectives.
 Benefits include:
o Improved Quality,
o Increased efficiency,
o Lower cost,
o Increased opportunity for innovation, &
o Continuous improvement of products and services
 The three key elements of partnering are:
o Long-term commitment.
o Trust.
o Shared vision.
PARTNERING

96.  Long-term commitment provides the needed environment
for both parties to work toward continuous improvement.
 Total organization involvement is necessary, CEO to the
workers.
 Each party contributes its unique strengths to the process.
 A supplier may only take risks in a long-term commitment.
 Dependency appears as a national consequence in a long
term commitment, it is not a sign of weakness, but a sign of
strength of the relationship and is necessary for competitive
advantage.
Long-term commitment

97. Trust
 The strength of Partnering is based on fairness and parity.
 Trust enables the resources and knowledge of each
partner to be combined to eliminate an adversarial
relationship.
 Mutual trust forms the basis for a strong working
relationship.
 Open and frequent communication avoids misdirection,
disputes and strengthens the relationship.
 The parties may share or integrate resources such as
training activities, administrative systems and equipment.

98. Shared Vision
 Each of the partnering organizations must understand the
need to satisfy the final customer.
 There should be an open and candid exchange of needs and
expectations.
 Shared objectives and goals ensure a common direction
aligned with each parties’ mission.
 Partners must understand each other’s business so that
equitable decisions are made.
 These decisions must be formulated and implemented as a
team.

99. SOURCING
There are three types of sourcing:
 Sole sourcing
o Organization is forced to use only one supplier.
o Technical specifications, patents, raw material location, etc.
cause this kind of sourcing.
o Partnering is a natural consequence, to benefit the end user.
 Multiple sourcing
o Two or more suppliers for an item are used.
o Competition will result in better quality, lower costs and
better service.
o It eliminates disruption of supply due to strikes etc.

100. SOURCING cont’d...
 Single sourcing
o A planned decision by the organization to select one
supplier for an item when several sources are available.
o Advantages for the organizations include reduced cost,
complete accountability, supplier loyalty, partnering and a
better end product with less variability.
o Advantages for the supplier include new business from the
customer, reduced cost of the business and production
processes.
o It has allowed organization to reduce their supplier base.

101. SUPPLIER SELECTION
Following are the conditions for the selection and evaluation of
suppliers:
1. Supplier knows management policy of the organization.
2. Stable management system of supplier , respected by others.
3. Supplier has the capability of dealing with technological
innovations.
4. Supplier can supply material meeting quality specifications.
5. Supplier has capability to meet the amount of production.
6. Supplier not to breach corporate secrets.

102. SUPPLIER SELECTION cont’d….
7. The supplier is easily accessible in terms of
transpiration and communication.
8. The supplier is sincere in implementing the contract
provisions.
9. The supplier has an effective quality system and
improvement program.
10. The supplier has a track record of customer
satisfaction and organization credibility.
These conditions go beyond evaluating a supplier on
the basis of quality, price and delivery.

103. Stages
• Survey
• Enquiry
• Negotiate
• Selection
• Evaluation or Experience

104. PRINCIPLES OF
CUSTOMER/SUPPLIER RELATIONS
Dr. Kaoru Ishikawa has suggested ten principles:
1. Customer and supplier are fully responsible for Quality
control.
2. Customer and supplier should respect each others
independence.
3. Supplier is entitled to complete information from the
customer.
4. Non-adversarial contract between customer and
supplier is needed for quality, quantity, price, delivery
method & payments.
5. Supplier should provide quality to meet customers
satisfaction.

105. PRINCIPLES OF
CUSTOMER/SUPPLIER RELATIONS
6. Product quality evaluation methods should be
decided by the mutual consent of both the parties.
7. Amicable settlement of disputes between customer
and supplier should be established in the contract.
8. Continuous information exchange will improve the
product or service quality.
9. To maintain an amicable relationship, both the
parties should do procurement, production, and
inventory planning.
10. Best interest of the end user should be considered
while doing business transactions.

106. SUPPLIER CERTIFICATION
ASQC has developed the following certification
criteria:
1. Customer and supplier shall have agreed on specifications
which are mutually developed, justifiable, and not
ambiguous.
2. Supplier shall have no product-related lot rejection for a
significant period of time.
3. Supplier shall have no non-product related rejections for a
stated period of time.
4. Supplier shall have no negative non-product related
incidents for a stated period of time.
5. Supplier shall have a fully documented quality system.
(ISO 9000)

107. SUPPLIER CERTIFICATION
6. Supplier shall have successfully passed an on-site system
evaluation.
7. Supplier must make inspections and tests. (Laboratory
results & SPC are used)
8. Supplier shall have the ability to timely provide inspection
and test data.
Occasionally it may be necessary to decertify a supplier as
a result of a major problem.
Benefits of certification include customer/supplier
partnership, direct shipment to stock and reduction of
supplier numbers to a manageable level.

108. SUPPLIER RATING
Supplier rating system is based on quality,
delivery and other added services.
The objectives of a rating system are:
o To obtain an overall rating of supplier performance.
o To ensure communication with suppliers in the areas of
quality, service, delivery and other desired measures.
o To provide supplier with a detailed and factual record of
problems for corrective action.
o To enhance the relationship between the customer and the
supplier.

109. RELATIONSHIP DEVELOPMENT
All the previously discussed issues contribute to
the development of the relationship. It includes:
1. Inspection
The goal is to eliminate or automate the inspection
process. It has four phases:
o 100% inspection,
o Sampling,
o Audit, and
o Identity check.

110. RELATIONSHIP DEVELOPMENT
2. Training
All personnel should receive quality awareness and
problem solving, technical and safety training.
 Team approach
Customer/supplier teams are established in areas such as
product design, process design and quality system.
4. Recognition and Award
Incentives/recognition in the form of newsletters, letter of
accommodation, ensures that suppliers remain committed
to a quality improvement strategy.