TQM GE 2022 Unit 2
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UNIT – 2TQM
PRINCIPLES
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INTRODUCTION “Leadership is the process of influencing others towards the accomplishment of goals”
Strong leadership from top management – absolute necessity of TQM
Leaders create clear & visible quality values and integrate these values in the organization structure
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CHARACTERISTIC BEHAVIOR OF QUALITY LEADERS
The customer first Value people Build supplier partnership Empower people Demonstrate involvement/commitment
Strive for excellence
Explain & deploy policy Improve communication Promote team work Benchmark continuously Establish system Encourage collaborations
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LEADERSHIP
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MEANING & DEFINITION Definition – “ the art of process of influencing people so that they will strive willingly towards the achievement of group goals”
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LEADERSHIP STYLES1. Autocratic or Dictatorial or Directing
2. Participative or Democratic
3. Lassiez – Faire or Free rein or Delegative
4. Consultative
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1. AUTOCRATIC OR DICTATORIAL
Leader takes full decisions without consulting subordinates Full authority is held by himself Loves power & never delegates authority Subordinates have to follow him without any question Leader uses threats & punishments to get work
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CONTINUEDAppropriate where Subordinates lack knowledge of company goals Subordinates are inexperienced or lack in knowledge Fear & punishment is used as disciplinary techniques Leader prefers to be active & dominant in decision making There is little room for error in accomplishment
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Facilitates quick decision making
Provides strong motivation & satisfaction to leader
Highest productivity Less competent subordinates are needed at lower level
Yields positive outcome under conditions of stress
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Employee morale will be low Absence of leader will affect output
Dissatisfaction will develop among employees
Employee turnover will be more
Full potential & creativity of sub not used
Misunderstood communications
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2. PARTICIPATIVE OR DEMOCRATIC
Subordinates are consulted & feedback is taken into decision making process
Decisions taken after group discussion – authority decentralized
Participative leader attaches high importance to work & people The leader provides freedom of thinking & expression
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Subordinates motivated by participation
Job satisfaction increased Absence of leader does not affect output
labour absenteeism & turn over will be minimum
Quality of decision is improved
Leader multiplies his abilities through contribution of followers
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Time consuming & delay in decision making
If subordinates are lazy & avoid work, then controlling them is difficult
Cannot be applied at lower level management
Some leaders feel uncomfortable – reduction in power & control
Leader requires communication & persuasion skills
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3. LASSIEZ-FAIRE OR FREE REIN LEADERSHP Complete freedom is given to the subordinates They plan, motivate, control & are responsible for their own actions
Leader does not take part in decision making Authority is completely decentralized
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Positive effect on job satisfaction & morale
Creates environment of freedom, individuality & team spirit
Full utilization of potential of subordinates
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Lack of discipline Lowest productivity No control & coordination Tense situation will prevail
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4. CONSULTATIVE Leader seeks input from subordinates
Encourages participation
Leader seeks advice from subs.
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REQUIREMENTS OF EFFECTIVE LEADERSHIP
Vision Empowerment Intuition Self Understanding & Value congruence
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LEADERSHIP ROLES1. Producer
2. Director
3. Coordinator
4. Checker
5. Stimulator
6. Mentor
7. Innovator
8. Negotiator
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ROLE OF SENIOR MANAGEMENT (TQM
LEADERS) Study & investigate TQM concepts Set clear quality policies & provide challenging tasks Establish ‘Priority of Quality’ & ‘Customer Satisfaction’ as basic policy and determine long term goals
Bring cultural change required for TQM effort Establish TQM vision for future and communicate to all involved Become coaches & cheerleaders for managers in transition period
Simulate the employees to be involved
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CONTINUED To teach employees realize that organizational interest & individual interest are geared into one another
To uphold norms & values and let it be known To attend TQM training programs To create coordination & harmony among departments To monitor quality improvement programs To create a basic of trust, respect & open communication
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LEADING PRACTICES FOR LEADERSHIP
1. Focusing on creating & balancing value for customers and other stakeholders
2. Create & sustain environment to sustain leadership system & environment for empowerment, innovation, agility and learning
3. Set high expectations & demonstrate substantial personal commitment
4. Integrate quality into daily leadership & management
5. Review organizational performance
6. Foster legal & ethical behavior
7. Integrate public support & community support into their business practices
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QUALITY STATEMENTS
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INTRODUCTION Established by Quality Council (QC) to provide directions for achieving total quality culture
Three elements of Quality Statement are:
1. Vision Statement
2. Mission Statement
3. Quality Policy Statement
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1. VISION STATEMENT A short declaration of what the organization aspires to be tomorrow (long term)
Ideal state that one might not reach but strive to work towards it
Describes where the leadership sees the organization in future Describes aspiration for future without specifying the means of achieving it
Leaders & employees should work towards achieving the vision statement
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CONTINUED A vision statement should be:Easy to be understood by all stakeholdersBriefly stated yet clear & comprehensiveChallenging yet attainableLofty yet tangibleCapable of stirring excitementCreate unity of purposeNot concerned with numbersSets the tone for employees
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EXAMPLES “To be the leading consumer battery company in the world” – Duracell
“We create elevating experiences for the people we touch and significantly impact the world we work in” - Titan
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2. MISSION STATEMENT One paragraph that describes the function of the organization Provides a clear statement of purpose for the employees, customer & suppliers
Answers questions like who are we? Who are our customers? What we do? How we do it?
Key elements:
i. Obligation to stakeholders
ii. Scope of the business
iii. Sources of competitive advantage
iv. View of the future
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EXAMPLES “We will do this through a pioneering spirit and a caring, value-driven
culture that fosters innovation, drives performance and ensures the highest global standards in everything we do” – Titan
“ The Ritz-Carlton Hotel is a place where the genuine care and comfort of our guests is the highest mission”
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STRATEGIC PLANNING
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INTRODUCTION Sets long term direction of the organization in which it wants to proceed
Process of envisioning goals, objectives and action plans
1/3/5/10 year plan
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PROCESS
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CUSTOMER SATISFACTION
“The single most important thing to remember about any enterprise is that there are no results inside its walls. The result of a business is a satisfied customer” – Peter Drucker
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INTRODUCTION “Customer is king” “Quality is what customer wants”
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CUSTOMER SATISFACTION MODEL
Teboul’s model Companies should strive to increase the intersecting region
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WHO ARE CUSTOMERS? Most important people in business Not dependent on the organization but organization depends on them
Not an interruption but purpose of business Part of business not outsiders Life blood of business Deserve the most courteous & attentive treatment
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TYPES OF CUSTOMERSinternal
Employees Supervisors, etc
external
Purchaser End user Merchants Processors Suppliers Potential customers Hidden customers
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CUSTOMER SUPPLIER CHAIN
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CUSTOMER PERCEPTION OF QUALITY
1. Performance
2. Features
3. Service
4. Warranty
5. Price and
6. Reputation
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FACTORS INFLUENCING CUSTOMER PERCEPTION OF
QUALITY
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KANO’S MODEL OF CUSTOMER SATISFACTION
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CONTINUED Useful tool in understanding customer needs Classifies product attributes based on how they are perceived by the customer
Customer needs categorized as 3:
1. Basic needs,
2. Performance needs and
3. Excitement needs
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CUSTOMER COMPLAINTS(FEEDBACK)
“An expression of dissatisfaction with a product/service, either orally or in writing from an internal or external customer”
Complaint may be genuine or may arise due to misunderstanding
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NEED To discover customer dissatisfaction To identify customer needs To discover relative priorities of quality To compare performance with the competition Determine opportunities for improvement
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SOURCES FOR CUSTOMER COMPLAINT
1. Complaints related to product itself
2. Complaints related to After-Sales-Service
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TOOLS FOR COLLECTING CUSTOMER FEEDBACK
1. Comment cards
2. Questionnaires
3. Post transaction surveys
4. Report cards
5. Focus group
6. Social media
7. Toll free telephone numbers
8. Customer visits
9. Employee feedback
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CUSTOMER COMPLAINTS FLOWCHART
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SERVICE QUALITY OR CUSTOMER SERVICE
Set of activities that an organization uses to satisfy its customers
Service can be provided before, during & after sale
Elements of customer service:
1. Organization
2. Customer care
3. Communication
4. Frontline people
5. Leadership
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CUSTOMER RETENTION Process of retaining the existing customers Important because attracting a new customer is 10 times expensive than retaining existing customer
60% of revenue comes from existing customer 2% increase in retention = 10% reduction in operation costs 96% unhappy customers don't complain rather they share the unhappy experience with others
Customer retention takes customer satisfaction to next level – Customer Delight
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EMPLOYEE INVOLVEMENT
“Treat your employees exactly as you want them to treat your best customers” – Stephen Covey
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INTRODUCTION “Employee Involvement is the backbone of a TQM movement: Effective involvement from every person is necessary for success
Important aspects of employee involvement are:
1. Motivation
2. Empowerment
3. Teams & Teamwork
4. Recognition & Rewards
5. Performance Appraisal
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1. EMPLOYEE MOTIVATION “The process of simulating people to accomplish desired goals”
Why?Improves employee involvementPromotes job satisfactionSecures high level of performanceCreates a positive work atmoshpere
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THEORIES OF MOTIVATION Maslow’s Hierarchy of Needs Herzberg’s Two Factor Theory
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1.MASLOW’S HIERARCHY OF NEEDS
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2. HERZBERG’S TWO FACTOR THEORY
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EMPOWERMENT
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2.EMPLOYEE EMPOWERMENT
The opposite of helplessness or dependency Being empowered implies that person acts from a state of autonomy doing what he knows is the right thing
Defined : “Empowerment is an environment in which people have the ability, the confidence and the commitment to take the responsibility & ownership to improve the process and initiate the necessary steps to satisfy customer requirements within well defined boundaries in order to achieve organizational values & goals”
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PRINCIPLES OF EMPOWERMENT
Tell people what their responsibilities are Give them authority equal to the responsibility Set standards of excellence Provide training Give knowledge & information Provide feedback on performance Build trust Allow them to fail & counsel them Treat them with dignity & respect
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CONDITIONS FOR EMPOWERMENT
1. Everyone must understand the need for change
2. The system needs to change
3. Organization must provide information, education and skill to its employees
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CHARACTERISTICS OF EMPOWERED EMPLOYEES
They feel responsible for their workGiven a free hand in their workBalance their own goals with those of the organizationAre well trained, equipped, creative & customer orientedAre challenged & encouragedMonitor & improve work continuouslyFind new goals & challenges daily
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TEAMS & TEAM WORK
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INTRODUCTIONTeam – “Group of people working together to achieve common goals”
Teamwork – “cumulative actions of the team during which each member of the team subordinates his individual interests & opinions to fulfil the objectives or goals of the group”
Essential element of TQM
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BENEFITS OF TEAM WORKImproved solutions to quality problemImproved ownership of solutionsImproved communicationsImproved integration
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TYPES OF TEAMS1. Process improvement team
2. Cross-functional team
3. Natural work teams
4. Self-directed/Self-managed Work Teams
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CHARACTERISTICS OF SUCCESSFUL TEAMS1. Sponsor
2. Team charter
3. Team composition
4. Training
5. Ground rules
6. Clear objectives
7. Accountability
8. Well defined decision procedures
9. Resources
10. Trust
11. Effective problem solving
12. Open communication
13. Appropriate leadership
14. Balanced participation
15. Cohesiveness
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ELEMENTS OF EFFECTIVE TEAM WORK
1. Purpose
2. Roles & responsibilities
3. Activities
4. Effectiveness
5. Decisions
6. Results
7. Recognition
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ACTIVITIES OF TEAM MANAGEMENT
1. Advising
2. Innovating
3. Promoting
4. Developing
5. Organizing
6. Producing
7. Inspecting
8. Maintaining
9. Linking
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ROLE OF TEAM MEMBERS Devote to common goals Feel responsible & equal Be interested & motivated Accept Appreciate & Respect Priority to continuous improvement
Participate actively Offer opinions, views & ideas
Trust, support & understand Attend training Abide by the decisions Be responsible for actions of team
Be aware of responsibility Make personal improvement routine
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STAGES OF TEAM DEVELOPMENT
FormingStormingNormingPerformingMaintenanceEvaluating
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BARRIERS TO TEAM PROGRESS
Insufficient training Incompatible rewards & compensation
First line supervisor resistance
Lack of planning Lack of management support
Access to information systems
Lack of union support Project scope too large Objectives not significant No clear measures of success
No time to improvement
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RECOGNITION & REWARD
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INTRODUCTIONRecognition – “ a process by which management shows acknowledgement of an employee’s outstanding performance”
Form of positive motivationEssential to sustain employee’s interestReward is tangible such as increments, commissions, cash bonus, etc
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NEED FOR RECOGNITION Improved employee morale Shows company’s appreciation for better performance Creates satisfied workplace Create highly motivated workplace Reinforce behavioral patterns Stimulate creative efforts
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TYPES OF REWARDS1. Intrinsic rewards
2. Extrinsic rewards
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PERFORMANCE APPRAISAL
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INTRODUCTION Performance appraisal – “A systematic and objective assessment or evaluation of performance and contribution of individual”
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NEED FOR PERFORMANCE APPRAISAL
Identify employees for promotions, salary revisions, transfer, demotion, etc.
Take an inventory of people, skills & potential and compare it with needs
Determine training & development needs Motivate employees by providing feedback Guide to an individual to plan for his career Validate selection process Improve communication
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PROCESS
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BENEFITS Provides feedback to employees Helps in determining pay assistance Basis for employee promotions, etc Determining TNA Career planning Evaluating staffs Pressure for better performance
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SUPPLIER PARTNERSHIP
“Deviate an inch, lose a thousand miles” – Chinese Proverb
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INTRODUCTION In today’s competitive world, to meet high quality demands, organizations have recognized the importance of suppliers
Focus on quality has changed supplier relationship
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PRINCIPLES OF SUPPLIER-CUSTOMER RELATIONS -
ISHIKAWA Both customer & supplier responsible for quality
Both should be independent of each other
Customer is responsible for providing the supplier with clear requirements
Both should enter into non-adversarial contract
Supplier responsible for providing quality to satisfy customer & provide necessary data on request
Both should decide in measuring quality of the product
Mutual contract for settling disputes
Continually exchange information, teams to improve quality
Both should perform business activities
Both should have best interest of end user in mind
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SUPPLIER PARTNERING “A continuing relationship between a buying firm and a supplying firm, involving a commitment over an extended period, an exchange of information and acknowledgement of risks and rewards of the relationships”
Based on trust, common goals & objectives and understanding of each party’s expectation and values
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BENEFITS OF PARTNERING Improved quality Reduced cost Increased productivity Increased efficiency Increased market share Increased opportunity for innovation Continuous improvement of products/services
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JAPANESE VIEW - KEIRESTU Develop long term relationship with a key supplier rather than having short term relationships with many suppliers
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KEY ELEMENTS OF PARTNERING
i. Long-Term commitment
ii. Trust
iii. Shared vision
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SUPPLIER SOURCINGi. Sole sourcing – only one supplier for the organization when
organization does not have a choice
ii. Multiple sourcing – use of two or more suppliers for an item
iii. Single sourcing – use of one supplier for an item when several sources are available
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SUPPLIER SELECTIONStages:
i. Survey stage
ii. Enquiry stage
iii. Negotiation and selection stage
iv. Experience stage
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CONDITIONS FOR SELECTION & EVALUATION
Supplier should appreciate & understand management philosophy of organization
Should have a stable management system Should maintain high technical standards Provide raw materials & parts required by purchaser Supplier should have the capacity to produce Should not breach corporate secrets Easy access to supplier by transportation & communication Sincerity in implementing contract provisions Have effective quality systems such as ISO/QS 9000 Should have a track record of customer satisfaction & credibility
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SUPPLIER CERTIFICATION - CRITERIA
Agreed specifications No product related lot rejection for a period of time No non product related rejections for a stated period of time No negative non product related incidents for a stated period of time
Fully documented QS Successfully pass on-site evaluation system Must conduct inspection & tests Ability provide inspection and test data
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SUPPLIER RATING SYSTEM
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RELATIONSHIP DEVELOPMENT
i. Inspection
ii. Training
iii. Team Approach
iv. Recognition
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CONTINUOUS PROCESS IMPROVEMENT “Don’t bother just to be better than your contemporaries or predecessors. Try to be better than yourself” – William Faulkner
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INTRODUCTION TQM – philosophy based on the quest for progress & continual improvement
A cyclic learning process A continuous improvement of quality of services & goods with participation from all
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INPUT/OUTPUT PROCESS MODEL
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JURAN’S TRIOLOGY Joseph M. Juran –Quality Control handbook Divides QM into 4 parts:
1. Quality Planning
2. Quality Control and
3. Quality Improvement
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1. QUALITY PLANNING
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2. QUALITY CONTROL
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3. QUALITY IMPROVEMENT
1. Build awareness on need for quality
2. Set goals for improvement
3. Organize to reach goals
4. Provide training
5. Carry out projects to solve problems
6. Report progress
7. Give recognition
8. Communicate results
9. Keep score
10. Maintain momentum by making annual improvement part of system
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JURAN’S TRIOLOGY DIAGRAM
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TYPES OF QUALITY PROBLEMS
1. Compliance problems
2. Unstructured problems
3. Efficiency problems
4. Process-Design problems
5. Product-Design problems
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IMPROVEMENT STRATEGIES (4 R’S OF TOTAL IMPROVEMENT)
1. Repair strategy
2. Refinement strategy
3. Renovation strategy
4. Reinvention strategy
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PDSA CYCLE (DEMING WHEEL/CYCLE)
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CONTINUOUS PROCESS IMPROVEMENT THROUGH DEMING’S CYCLE USING
PDCA
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BENEFITS OF PDSA CYCLEBenefits of PDSA Cycle can be experienced in the following areas Daily routine management Problem-solving process Project management Continuous development Vendor development Human resources development New product development Process trials
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5W2H METHOD
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5S HOUSE KEEPING 5S is a practice of housekeeping used to establish and maintain a productive and quality environment
Well organized workplace – safer, efficient & more productive environment
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OBJECTIVES OF 5S To create a clean & neat working place To systematize day to day work To improve work efficiency To standardize work practices To improve work discipline To improve quality of work & products
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FACTORS IN IMPLEMENTING 5S
1. Participation by all
2. Top management commitment
3. Should be self sustaining
4. Review the program
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BENEFITS?
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KAIZEN Kaizen is a Japanese word meaning continuous improvement or improvement over improvement
Kaizen vs Kairyo
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ELEMENTS OF KAIZEN
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FEATURES OF KAIZEN
Value added & non value added activities
Muda (7wastes) – over production, delay, transportation, processing, inventory, waste motion & defective parts
Principles of motion study Principles of material handling
Documentation of SOP
5S for work place Visual management JIT Poka-Yoke Team dynamics