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PRINCIPLES
2..Leadership
2.1.1.INTRODUCTION
A leader is one who instills purposes, not one who controls by brute force. He
strengthens and inspires the followers to accomplish shared goals.
Leaders
Shape the Organization’s value
Promote the Organization’s value
Protect the Organization’s value and
Exemplifies the Organization values
An organization's senior leaders need to set directions and create a customer
orientation, clear and visible quality values, and high expectations. Values, directions,
and expectations need to address all stakeholders. The leaders need to ensure the
creation of strategies, systems, and methods for achieving excellence. Strategies and
values should help guide all activities and decisions of the organization. The senior
leaders must commit to the development of the entire work force and should
encourage participation, learning, innovation, and creativity by all employees.
2.1.2.CHARACTERISTICS OF LEADERS
There are 12 behaviors or characteristics that successful leaders demonstrate.
1. They give priority attention to external and internal customers and their
needs. Leaders place themselves in the customers' shoes and service their needs
from that perspective.
2. They empower, rather than control, subordinates. Leaders have trust and
confidence in the performance of their subordinates. They provide the resources,
training and work environment to help subordinates to do their jobs.
3. They emphasize improvement rather than maintenance. Leaders use the
phrase "If it isn't perfect, improve it" rather than "If it isn't broke, don't fix it."
4. They emphasize prevention. "An ounce of prevention is worth a pound of
cure" is certainly true.
5. They encourage collaboration rather than competition. When functional
areas, departments, or work groups are in competition, they may find subtle ways
of working against each other or withholding information.
6. They train and coach, rather than direct and supervise. Leaders know that the
development of the human resource is a necessity.
7. They learn from problems. When a problem exists, it is treated as an
opportunity rather than something to be minimized or covered up.
8. They continually try to improve communications. Leaders continually
disseminate information about the TQM effort. They make it evident that TQM is
not just a slogan.
9. They continually demonstrate their commitment to quality. Leaders walk
their talk-their actions, rather than their words, communicate their level of
commitment.
10. They choose suppliers on the basis of quality, not price. Suppliers are
encouraged to participate on project teams and become involved.
11. They establish organizational systems to support the quality effort. At the
senior management level a quality council is provided, and at the first-line
supervisor level.
12. They encourage and recognize team effort. They encourage, provide
recognition, and reward individuals and teams.
2.1.3.LEADERSHIP CONCEPTS
To be effective, a leader needs to know and understand the following
1. People, paradoxically, need security and independence at the same time.
2. People are sensitive to external rewards and punishments and yet are also
strongly self-motivated.
3. People like to hear a kind word of praise.
4. People can process only a few facts at a time; thus, a leader needs to keep
things simple.
5. People trust their gut reaction more than statistical data.
6. People distrust a leader's rhetoric if the words are inconsistent with the
leaders actions.
2.1.4.THE 7 HABITS OF HIGHLY EFFECTIVE PEOPLE
Stephen R. Covey has based his foundation for success on the character ethic
things like integrity, humility, fidelity, temperance, courage, justice, patience,
simplicity, modesty and the Golden Rule. The personality ethic-personality growth,
communication skill training and education in the field of influence strategies and
positive thinking--is secondary to the character ethic. What we are communicates far
more eloquently than what we say or do.
Habit 1: Be Proactive
Habit 2: Begin with the End in Mind
Habit 3: Put First Things First
Habit 4: Think Win-Win
Habit 5: Seek First to Understand, Then to Be Understood
Habit 6: Synergy
Habit 7: Sharpen the Saw (Renewal)
2.1.5. LEADERSHIP SURVEY
In order to evaluate a manager's performance, a survey of the manager's workers
should be taken periodically. To define quality produced several dozen different
responses, including the following.
Perfection
Consistency
Eliminating waste
Speed of delivery
Compliance with policies and procedures
Providing a good, usable product
Doing it right the first time
Delighting or Pleasing Customers
Total Customer service and satisfaction
2.1.6. ROLE OF SENIOR MANAGEMENT
Everyone is responsible for quality, especially senior management and the CEO;
however, only the latter can provide the leadership to achieve results. Senior
management must actively participate in the implementation process. They must also
actively participate in the quality council and all of its duties. These two activities
provide the primary activities of the senior manager's role.
2.1.6.1.CORE VALUES AND CONCEPTS
Core values and concepts foster TQM behavior and define the culture. Each
organization will need to develop its own values. Given here are the core values and
concepts; for the Malcolm Baldrige National Quality Award. They can be used as a
starting point. For any organization as it develops its own.
2.1.6.2.CUSTOMER-DRIVEN QUALITY
Quality is judged by customers. All product and service characteristics that
contribute value to the customer and lead to customer satisfaction, preference, and
retention must be the focus of an organization's management system. Value and
satisfaction may be influenced by many factors throughout the customer's overall
purchase, ownership, and service experiences. These factors include the
organization's relationship with customers that helps build trust, confidence, and
loyalty. Customer-driven quality is thus a strategic concept. It is directed toward
customer retention, market share gain, and growth. It demands constant sensitivity to
changing and emerging customer and market requirements and the factors that drive
customer satisfaction and retention.
2.1.6.3.VALUING EMPLOYEES
An organization's success depends increasingly upon the skills and motivation of
its work force. Employee success depends increasingly upon having opportunities to
learn and to practice new skills. Organizations need to invest in the development of
the work force through education, training, and opportunities for continuing growth.
Such opportunities might include classroom and on-the-job training, job rotation, and
pay for demonstrated knowledge and skills. On-the-job training offers a cost-effective
way to train and to better link training to work processes. Work force education and
training programs may need to use advanced technologies such as satellite broadcasts
and computer aided learning. Increasingly, training, development, and work units
need to be tailored to a more diverse work force and to more flexible, high-
performance work practices.
2.1.6.4. FAST RESPONSE
Success in competitive markets increasingly demands even-shorter cycles for new
or improved product and service introduction. Also, faster and more flexible response
to customers is now a more critical requirement. Major improvement in response time
often requires simplification of work units and work processes. To accomplish such
improvement, the time performance of work processes should be among the key
process measures.
2.1.6.5. DESIGN QUALITY AND PREVENTION
Organizations need to emphasize design quality-problem and waste prevention
achieved through building quality into products and services and efficiency into
production processes. In general, costs of preventing problems at the design stage are
lower than costs of correcting problems that occur "downstream." Design quality
includes the creation of fault-tolerant (robust) or failure-resistant processes and
products. A major success factor in competition is the design-to-introduction (product
generation) cycle time. Meeting the demands of rapidly changing markets requires
that organizations carry out stage-to-stage integration (concurrent engineering) of
activities from basic research to commercialization.
2.1.6.6. LONG-RANGE VIEW OF THE FUTURE
Pursuit of market leadership requires an organization to have a strong future
orientation and a willingness to make long-term commitments to all stakeholders’
customers, employees, suppliers, stockholders, the public, and the community.
Planning needs to anticipate many changes, such as customers’ expectations, new
opportunities, technological developments, new customer and market segments,
evolving regulatory requirements, community/societal expectations and thrusts by
competitors. Plans, strategies and resource allocations need to reflect these
commitments and changes.
2.1.6.7. MANAGEMENT BY FACT
Modern organizations depend upon measurement and analysis of performance.
Measurements must derive from the organization's strategy and provide critical data
and information about key processes, outputs, and results. Data needed for
measurement and improvement are of many types, including customer, product and
service performance operations, market competitive comparisons, supplier,
employee-related, and cost and financial.
2.1.6.8. PARTNERSHIP DEVELOPMENT
Organizations need to build internal and external partnerships to better accomplish
their overall goals. Internal partnerships might include labor-management
cooperation, such as agreements with unions. Agreements might entail employee
development, cross training, or new work organizations, such as high performance
work teams. External partnerships include those with customers, suppliers, and
education organizations. An increasingly important kind of external partnership is the
strategic partnership or alliance. Such partnerships might offer an organization entry
into new markets or a basis for new products or services.
2.3.1. sTRATEGY
The quality council has the overall responsibility for the performance measures. It
ensures that all the measures are integrated into a total system of measures. To
develop the system, the quality council will obtain appropriate information from all of
the stakeholders. They will utilize the core values, goals, mission, and vision
statements as well as the objectives and criteria. With this information, the strategic
measurement system is created.
An example of a system that emphasizes percent improvement might contain the
functions and metrics as given below.
2.3.1.1.QUALITY
Percent reduction in cost of poor quality
Percent reduction in nonconformities
Percent of certified suppliers
Percent reduction in supplier base
Percent reduction in corrective action cycle time
2.3.1.2. cOST
Percent increase in inventory turnover
Percent reduction in data transactions
Percent increase in materials shipped direct to work-in-process by the supplier
Percent increase in output dollars per employee
Percent reduction in floor space utilization
2.3.1.3. fLEXIBILITY
Percent reduction in cycle time
Percent reduction in setup time
Percent reduction in lot/batch size
Percent increase in number of jobs mastered per employee
Percent increase in common materials used per product
2.3.1.4. rELIABILITY
Percent of processes capable of C = 2.0
Percent reduction in down time
Percent reduction in warranty costs
Percent reduction in design changes
Percent increase in on-time delivery
2.3.1.5. iNNOVATION
Percent reduction in new product introduction time
Percent increase in new product sales revenue as a percent of total sales revenue
Percent increase in new patents granted
Customer perception as a leader in innovation
Percent of management time spent on or leading innovation
The above are tracked monthly to show trends, identify problem areas, and
allocate resources.
2.4. EMPLOYEE INVOLVEMENT
Employee involvement is one approach to improving quality and productivity. Its
use is credited for contributing to the success enjoyed by the Japanese in the world
market place. Employee involvement is not a replacement for management nor is it
the final word in quality improvement. It is a means to better meet the organization’s
goals for quality and productivity at all levels of an organization.
2.4.1. BENEFITS OF EMPLOYEE INVOLVEMENT
Involving employees, empowering them, and bringing them into the decision-
making process provide the opportunity for continuous process improvement.
Employee involvement improves quality and increases productivity, because
employees make better decisions using theft expert knowledge of the process.
Employees are more likely to implement and support decisions they had a part
in making.
Employees are better able to spot and pinpoint areas for improvement.
Employees are better able to take immediate corrective action.
Employee involvement reduces labor/management friction by encouraging
more effective communication and cooperation.
Employee involvement increases morale by creating a feeling of belonging to
the organization.
Employees are better able to accept change because they control the work
environment.
Employees have an increased commitment to unit goals because they are
involved.
2.5.motivation
Knowledge of motivation helps us to understand the utilization of employee
involvement to achieve process improvement.
2.5.1. MASLOW’S HIERARCHY OF NEEDS
One of the first and most popular motivational theories was developed by
Abraham Maslow. He stated that motivation could best be explained in terms of a
hierarchy of needs and that there were five levels.
These levels are
Survival
Security
Community
Esteem
Self-actualization
2.8.5.2. lEADER
The quality circle leader is elected by the circle members. Experience proves that
circle activities will have a better chance of success when the supervisor or foreman is
the leader. Leader is like the thread in a garland of flowers. It is the thread which
binds the individual flower into a garland. In a good garland, the thread is unseen.
Flowers are prominent. Similarly, in an effective circle the leader will not be
prominent but the members will be prominent. In other words, the leader is the
binding for the effectiveness of the circle.
The leader –
acquire skills in quality circle techniques
motivate potential members to join circle activities
schedule circle meetings
decide the time frequency and duration of the meeting
ensure effective participation of all members
prepare agenda for effective utilization of meeting
ensure that the problems discussed are work related problems
stimulate group discussion, by giving necessary inputs and inputs and
encouragement
conclude each meeting with the responsibilities and assignments clearly
defined
ensure the minutes of the meeting are properly recorded and distributed
arrange for management presentation
maintain report with the facilitator
plan the agenda to be meaningful and effective
hold discussion with the facilitator before and after the meeting
be responsible for people building
encourage non-members to become members
records the minutes of each meeting
maintain the members attendance long maintain a member training status
record
2.8.5.3. dEPUTY lEADER
Like leader deputy leader is also elected by the circle members.
The deputy leader –
generates enthusiasm for circle activities
takes care for the operation of the circle
meets with the circle once in a week
calls upon the facilitator for assistance
responsible for circle records
creates co-ordination and harmony in the circle
serves as a key link between members and management
attends leadership training
works closely with the foreman
seeks advice and asks for help if required
keeps the meetings on track
enforces a code of conduct
maintains a good attitude about circles
gives assignments
starts and ends meetings on time
helps to get new members for the circle
promotes the quality circle programme
2.8.5.4. fACILITATOR
The facilitator is an important link in the structure that is responsible for
coordinating and conducting quality circle activities. He is a person who should make
things happen through people. He is a combination of a coach, coordinator,
communicator, innovator, promoter, teacher, statistician and catalyst - all in one. The
facilitator should be selected by the steering committee immediately after taking a
definite decision to implement quality circle. In fact, the first task of the steering
committee is to select the facilitator. The facilitator is a senior officer of the
department, where quality circles are working and is nominated by the management.
Because of the crucial role that the facilitator plays in making quality circles
operation a success this selection has to be done carefully.
The Facilitator –
forms the link between the circles and the rest of the organization
works closely with the steering committee
continuously coach the circle leader
trains the circle leader
helps the leader during training of the members
maintains circle records
arranges meeting with outsiders if necessary
publicizes the programme
preparation for presentation – invitations, papers, visuals
prepares training material
organizes meetings
Thus the facilitator forms the link between the teams and rest of the organization
and works closely with steering committee. The facilitator may be assisted by a
number of department coordinator.
2.8.5.5. sTEERING cOMMITTEE
This committee comprises heads of major functions as members and the chief
executive of the organization as the chairman. For the successful implementation of
quality circles, the top management’s support must not only be available but also
visible to all. Steering committee sets goals and objectives for quality circle activities.
It also formulates and establishes operational guidelines and controls the rate of
expansion. The steering committee should be formed immediately after taking a
decision to implement quality circle activities.
The steering committee is policy making group. The success of quality circles
in any organization depends upon how the steering committee can use its expertise
for achieving the primary objectives of the organization. The responsibility of
steering committee is to create successful and harmonious quality circle activities.
The success of quality circle depends on the effectiveness of the frame work of the
five most important principles of management viz. (1) Setting objectives (2) Planning
(3) Staffing and scheduling (4) Directing and (5) Control. In other words, the steering
committee is the Board of Director of the quality circle activities.
The Steering Committee –
takes an overview of the operation of quality circles in the organization as a
whole. On the basis of reports from the coordinator and the facilitators,
problem areas are identified and remedial action suggested.
takes decisions on important recommendations of quality circles falling
outside the competence of other levels of management which are reported
to the steering committee.
gives major policy guidelines and directions for the healthy propagation of
the concept.
Sanctions major programmes and financial support to give thrust to the
promotion of the quality circles
attends management presentations and get together
meets regularly once in two to three months are convened by the
coordinator.
2.8.5.6. CO-ORDINATING aGENCY
While the facilitator nurtures the quality circles in his section/department the
coordinating agency coordinates the activities of circles throughout the organization.
In the coordinating agency depending upon the number of circles in operation, full
time coordinators have to be nominated. The department to be nominated for
coordination depends on the convenience of the organization. The formal naming of
the department for the work of coordination is important for institutionalizing the
movement as, individuals may get shifted, departments normally are permanent in
any organization and therefore continuity of the quality circle’s propagation is assured
by earmarking a particular department for this task.
The Coordinating Agency –
organizes training programmes for members as and when new circles are
formed
convenes the steering committee meeting regularly once in two to three
months and maintains the minutes thereof
organizes top management presentations regularly once in two to three
months centrally registers circles as and when formed and also maintains
records of number of members, frequency of management representations,
etc.
coordinates and evolves a consensus for norms to assess the performance
of different quality circles and of different divisions
coordinates and ensures availability of common facilities to all quality
circles
prepares a budget for the functioning of quality circles and submits the
same to the steering
committee for adoption
organizes social get together, conventions and conferences, etc., from time
to time as decided by the steering committee
coordinates the deputing of quality circle leaders and members to other
organization and programmes
helps in resolving problems that may be encountered in the implementation
of quality circles with the help of the steering committee, if necessary
arranges for publication of the activities of the quality circles in newsletters
and journals
arranges for guest speakers to talk on subjects of interest to quality circles
maintains a library of publications on quality circles for the benefit of those
interested
assists the steering committee in affording adequate level of motivation and
recognition to quality circles in operation so as make the movement a self-
sustained one and help it to grow from strength to strength.
2.8.5.7. tOP mANAGEMENT
The top management has an important role to ensure the successful
implementation of quality circles in the organization.
The top management –
must demonstrate unequivocally its understanding and faith in the concept
of quality circle.
must make provision in the annual budget for meeting the expenditure of
operation of quality circles
encourages healthy growth through competition between quality circles by
instituting an award to the division/department which performs best in
propagation on quality circles as well as to the quality circles which makes
the best presentations at any centrally organized convention or conference.
gives necessary guidance to employees at different levels for making the
quality circle movement a self-sustained success.
includes propagation of quality circles as one of corporate objectives.
2.8.5.8. NON-MEMBERS
It would be difficult for the members of the quality circles to implement their own
suggestions without the cooperation of non-members. In fact non-members would be
enthusiazed to participate in quality circle activities and also to witness the
presentations being given by quality circles from time to time. If this were to be done,
non-members would gradually change their attitudes, appreciate what they, as
individuals would get out of participation in circle activities and may then decide to
join the existing circles or form new ones. Under no circumstances should a climate
of conflict be created in any work area between members and non-members. The
lines of communication should be kept open to the non-members. Non-members
should encourage to present ideas to the circle.
2.8.6. OPERATION OF QUALITY CIRCLE
The operation of quality circle takes place in the following way.
a) The initial meeting is held (week 1): Quality circle members meet at the
appointed place and time and choose their leader and deputy leader by consensus.
The facilitator or the coordinator provides the members with the necessary
stationery such as pens, paper, notebooks, black board and any other items useful
and necessary for their activities. Then the group, if it so chooses, gives itself a
name for individual identity. The facilitator makes introductory remarks by way of
reaffirming the management’s support and its best wishes for the success of the
circle activities. Thereafter he withdraws and leaves the floor to the leader for
conducting further proceedings. The leader and the members take the opportunity
to get to know each other better in the new context of the circle activities. The
leader concludes the hour long meeting informing the members that they would be
conducting brainstorming at the second meeting to identify all the problems
coming in the way of better quality, productivity and optimum performance of the
work area.
b) The second /third meeting: When the quality circles start functioning, they
are able to identify a large number of issues affecting their work adversely during
their first few brainstorming sessions. The management, perhaps, may not even be
aware of such problems. Through their own brainstorming efforts and suggestions
from other related agencies, quality circle members compile a list of all the
problems that require to be tackled by them one after the other . It may be so that
circle members are exercising their creativity for the first time and therefore,
problems may not strike their mind easily. They could then be guided to ask
themselves the following questions which would trigger their thinking.
What specific jobs give you the most problems?
What jobs are held up because of delays or bottlenecks?
What jobs are causing a lot of rework?
What reports, form or records require unnecessary information?
Where can an operation be combined with another to save time?
Can any process be made more efficient by new or modification of
fixtures / jigs?
What jobs or procedures take too long?
Where can better use of space be made?
On what jobs are too many mistakes being made or quality and work is
unsatisfactory?
Where can wear and tear or equipment be reduced?
Where can materials, parts or supplies be reduced?
What jobs require a lot of checking?
Can any material be substituted for cost effectiveness?
The problems that may be tackled by quality circles can be classified as:
(a) Those which affect their work-area and implementation of their solutions
is under the purview of the quality circles.
(b) Those which affect their work area but have in interface with other
departments and implementation of recommendations can only be done with the
cooperation of others.
(c) Those which are totally outside the purview of the quality circle. Initially
some guidance from facilitators may be necessary so that quality circles do not
take up problems under category (c) but give priority to problems under
category (a) and thereafter to those under (b).
c) The fourth meeting: The circle members now take up the task of assigning
priorities to the problems that they have identified. The prioritizing of problems
could on the basis of any other three criteria, either simplicity of the problem,
which could be taken up first and resolved so that the members start developing
self confidence in regard to their own capabilities to identify and resolve problems.
Or by collecting or generating data as the case may be and subsequently using the
spare to analysis to identify which problem is hurting the work area performance
the most. Or the members may also be asked by the leader to give their individual
preferences for the selection of the priority problem. Which ever gets the highest
number of preferences is taken up for resolving first and others subsequently in
order of number of votes received. The circle leader or members may seek the
guidance of other executives or the facilitator before coming to any conclusions in
this respect.
d) The next two or three meetings: Having decided the priority of problems, and
the first one to be tackled, the circle starts systematically analyzing the data
relating to it. The necessary data is gathered from the concerned agencies or may
be generated by observation, if it is not readily available. The data required could
be on the frequency of occurrence, quantum of rejections or non-conformances
etc., which could indicate the depth of the problem. All the factors identified as
responsible for the problems are listed out again by brainstorming. The important
ones are segregated from the trivial ones by the use of pareto analysis. Cause and
effect diagrams are drawn to analyze the factors. This enables the members to
ensure that no probable reason for the problem is overlooked.
e) The factors which are identified as being responsible for the problems are
then individually taken up and solutions acceptable to all are arrived at. In order to
ensure that solutions which are beneficial to the work area where circles are
operating do not pose fresh problems in other related sections, members are
advised to involve representatives of other areas which are likely to be affected by
the decision at the discussions stage itself. Circle members usually try out the
validity of their recommendation in their free time before it is finally adopted. A
quality circle in a workshop decided to incorporate a new fixture in the method of
machining, but before declaring the solution arrived at, they, in their own free
time, went to the scrap yard, collected the necessary materials, manufactured a
prototype outside the working hours and proved the advantages and feasibility of
their suggestion before recommending it for adoption in technological documents.
In the case of recommendations by quality circles which require the sanction of the
highest authorities in the organization, they may be considered by the steering
committee at its periodical meetings. Alternately, at the management presentations
in the presence of the steering committee, the circle members give the required
clarifications and a final decision on the practicality of the recommendation is
given.
f) Implementation: After arriving at a solution by consensus the circle members
ensure that it is also implemented. If it is falling within their own purview, they
may consult the local executives or managers and proceed to execute it. If
implementation of their solution has to be followed up by some other agencies or
by other higher levels of management, it could be passed on to them through the
facilitator. However, even in such cases, the group pressure catalyses prompt
action by the concerned agency to implement the circle’s recommendations. Thus
the operation cycle for each problem taken up by quality circles is completed.
2.9. recognition and reward
Recognition is a form of employee motivation in which the organization publicly
acknowledges the positive contributions an individual or team has made to the
success of the organization. Various ways for Recognition and Rewards are
Reward is something tangible such as theater tickets, dinner
behavior.
Recognition and reward go together to form a system for letting
people know they are valuable members of the organization.
Employees should be involved in the planning and
implementation of the recognition and reward program. This activity should
be performed by a cross-functional team that represents all areas of the
organization.
Recognition should be valid, genuine, and meaningful for the
giver and the recipient; it should not be used to manipulate people.
The organization should recognize effort as well as easy-to-
measure results
Recognition should not be based primarily on chance, which
frequently occurs in employee-of-the-month programs.
People like to be recognized, either as a team or individually.
2.9.1. EFFECTS OF RECOGNITION AND REWARD SYSTEM
Recognition and reward go together for letting people know that they are
valuable members for the organization.
Recognition and reward system reveals that the organization considers quality
and productivity as important.
PROCESS
People,
Equipment,
Method,
Procedures,
Environment,
Materials
OUTPUT
Information,
Data,
Product,
Service, etc.
INPUT
Materials,
Money,
Information,
Data, etc.
OUTCOMES
CONDITIONS
Because customer needs are stated from their viewpoint, they should be translated
to requirements that are understandable to the organization and its suppliers.
The next step in the planning process is to develop product and service features
that respond to customer needs, meet the needs of the organization and its suppliers,
are competitive, and optimize the costs of all stakeholders.
2.11.2.2. cONTROL
Control is used by operating forces to help meet the product, process, and service
requirements. It uses the feedback loop and consists of the following steps:
Determine items/subjects to be controlled and their units of measure.
Set goals for the controls and determine what sensors need to be put in place
to measure the product, process, or service.
Statistical process control is the primary technique for achieving control.
The basic statistical process control (SPC) tools are Pareto diagrams, flow
diagrams, cause and effect diagrams, check sheets, histograms; control charts, and
scatter diagrams.
2.11.2.3. iMPROVEMENT
Process improvements begin with the establishment of an effective infrastructure
such as the quality council. Two of the duties of the council are to identify the
improvement projects and establish the project teams with a project owner. In
addition, the quality council needs to provide the teams with the resources to
determine the causes, create solutions, and establish controls to hold the gains.
Using the knowledge learned, develop an improved plan and repeat the cycle.
Fig.2.3. PDCA cycle
CLEARING
SEITON
ARRANGING
SEISO
SEIKETSU
SWEEPING
SHITSUKE
CLEANLINESS
DISCIPLINE
5-S
CONTRIBUTES
TO
QUALITY
PRODUCTIVITY
VISUAL CONTROL
5-S
FACILITATES
No use
Repair
Arrange everything in proper order so that it can be easily picked up for use.
parts, R.Mtls.
3. Dirty jigs, fixtures 3. Littered floor
4. Dirty walls, roofs 4. Dirty windows
5. Littered floor
2.13.3.1. CONSEQUENCES OF NOT PRACTICING SEISO
Most machines are affected by dust & dirt and hence their performance may
go down.
Dust and dirt on products, materials, packing boxes etc. will affect either their
performance quality or their aesthetic look.
Unpleasant to work in.
2.13.4. THE FOURTH S: SEIKETSU: CLEANLINESS
Washing with a strong overtone of keeping things disinfected as well as free of
hazardous chemicals.
2.18.1.1. INSPECTION
The goal of inspection is to eliminate, substantially reduce, or automate the
inspection activity.
There are four phases of inspection:
100% inspection,
Sampling,
Audit
Identity check.
In the initial phase, 100% inspection of the critical quality characteristics by both
the customer and the supplier is recommended. As the customer gains confidence in
the supplier’s quality performance, a change to sampling is initiated. As the supplier
gains confidence in its quality performance, a change to sampling is recommended,
provided there is statistical control of the process using control charts and process
capability At this point, the customer changes to auditing the supplier’s performance
using a ship-lot scheme or some type of random sampling of the submitted lots.
2.18.1.2. tRAINING
In small organizations, the senior managers perform many different
functions.Frequently no one has expertise in quality or the ability to train the work
force.Therefore, the customer or a consultant must start the training process.Larger
organizations may invite the supplier to attend their courses or present thecourse at
the supplier’s plant.Such training and the types of courses may be a requirement for
partnership.Training should be viewed as an investment, not an expense.
2.18.1.3. TEAM APPROACH
Customer/supplier teams are established in a number of areas, such as product
design, process design, and the quality system. It is a good idea to involve suppliers
when the team is first assembled rather than at the end of its activities. Team meetings
should occur at both parties’ so they obtain a greater understanding of the processes.
2.18.1.4. RECOGNITION
Creating incentives for suppliers are one way to ensure that they remain committed
to a quality improvement strategy. Incentives may be in the form of a preferred
supplier category with its rewards.
2.18.1.5. PERFORMANCE MEASURES
The final concept of Total Quality Measurement (TQM) is performance measures.
One of the Malcolm Baldrige National Quality Award core values is managing by fact
rather than by gut feeling. Performance measures are used to achieve one or more of
the following seven objectives:
Establish baseline measures and reveal trends.
Determine which processes need to be improved.
Indicate process gains and losses.
Compare goals with actual performance.
Provide information for individual and team evaluation.
Provide information to make informed decisions.
Determine the overall performance of the organization.
2.18.1.6. TYPICAL MEASUREMENTS
What should be measured is frequently asked by managers and teams.
The information below suggests some items that can be measured.
2.18.1.7. HUMAN RESOURCES
Lost time due to accidents, absenteeism, turnover, employee satisfaction index,
number of suggestions for improvement, number of suggestions implemented,
number of training hours per employee, training cost per employee, number of active
teams, and number of grievances.
1. Customers
Number of complaints, number of on-time deliveries, warranty data such as
parts replacement, customer satisfaction index, time to resolve complaints, telephone
data such as response time, mean time to repair, dealer satisfaction, report cards.
2. Production
Inventory turns, SPC charts, C amount of scrap/rework, nonconformities per
million units, software errors per 1000 lines of code, percent of flights that arrive on
time, process yield, machine downtime, actual performance to goal, number of
products retuned, cost per unit.
3. Research and Development
New product time to market, design change orders, R & D spending to sales,
average time, to process proposal, recall data, cost estimating errors.
4. Suppliers
SPC charts, Cp/Cpk, on-time delivery, service rating, quality performance,
billing accuracy, average lead time, percent of suppliers that are error free, just-in-
time delivery target.
5. Marketing/Sales
Sales expense to revenue, order accuracy, introduction cost to development
cost, new product sales to total sales, new customers, gained or lost accounts, sales
income to number of sales people, number of successful calls per week.
6. Administration
Revenue per employee, expense to revenue, cost of poor quality, percent of
payroll distributed on time, number of days accounts receivable past due, number of
accounts payable past due, office equipment up-time, purchase order errors, vehicle
fleet data, and order entry/billing accuracy. A good metric compares the measurement
of interest to the total possible outcomes, such as rework hours to total hours.
7. Criteria
All organizations have some measurements in place that can be adapted for
TQM. However, some measurements may need to be added. In order to evaluate the
existing measures or add new ones, the following ten criteria are recommended
Simple
Measures should be understandable by those who will use them.
Few in number
Developed by users
Relevance to customer
Improvement
Cost
Timely Visible
Aligned
Result
TWO MARKS QUESTIONS AND ANSWERS
Creating incentives for suppliers is one way to ensure that they remain committed
to a quality improvement strategy. Incentives may be in the form of a preferred
supplier category with its rewards. Recognition may be in the form of publication of
outstanding contributions in the customer’s newsletter, a letter of commendation, or a
plaque. The Quality Circle framework supports motivating people with both
recognition and rewards (cash prizes)
3. What is the importance of customer focus for an organization?
Evaluation
measurement
reporting
reviewing
5. Mention some benefits of implementing 5S principles.
6. Explain Kaizen.
[A.U. Nov/Dec 11]
Kaizen, which is a Japanese word that means gradual and orderly continuous
improvement, is a philosophy that covers all business activities and everyone in an
organization. In the kaizen philosophy, improvement in all areas of business – cost,
meeting delivery schedules, employee safety and skill development, supplier
relations, new product development, and productivity – serve to improve the quality
of the firm. Thus, any activity directed towards improvement falls under the kaizen
umbrella.
7. Explain Supplier Rating.
[A.U. Apr/May 2015]
Customer needs
Customer positioning
Predict the future
Gap analysis
Closing the gap
Alignment
Implementation
15. What is meant by recognition in an organization?
The performance appraisal means to let employees know how they are doing, and
provide a basis for promotions, salary increases, counseling and other purposes
related to an employee’s future.
18. List the tools used for feedback?
Comment cards
Surveys
Focus groups
Toll-free telephone lines
Customer visits
Report cards
The internet
Employee feedback
1. Reduce resources
2. Reduce errors
3. Meet or exceed expectations of downstream customers
1. Planning
2. Control
3. Improvement
24. What are the steps in the PDCA cycle?
Kaizen is a Japanese word for the philosophy that defines management’s role in
continuously encouraging and implementing small improvements involving everyone.
It is the process of continuous improvement in small increments that make the
process more efficient, effective, under control and adaptable.
REVIEW QUESTIONS
1. What are the benefits of the employee involvement?
[Nov/Dec 2014]
4. What are the factors that KAIZEN focuses for continuous improvement?
[Nov/Dec 2014]
8. Explain the seven phases of PDCA cycle for problem solving. [May/June 2012]
[May/June 2009]
12. Discuss the roles to be played by the employees for an effective implementation
of KAIZEN.
[May/June 2013]
13. Explain the key elements of customer supplier partnership. [May/June 2013]
17. What are the types of teams formed in industries? Discuss the functions of any
four of them.
[April/May 2014]
18. How is PDSA cycle used? Discuss with a case study.
[April/May 2014]
b) Explain the steps informing a performance appraisal system. What are the
benefits?
[April 2014]