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Quality and Business Performance
One factor above all others-quality-drives market share. And when
superior quality and large market share are both present protability is
virtually guaranteed.
There is no doubt that relative perceived quality and protability are
strongly related. Whether the prot measure is return on sales or
return on investment business with a superior product!service o"ering
clearly outperform those with inferior quality
#ven producers of commodity or near-commodity products seek and
nd ways to distinguish their products through cycle time availability
or other quality attributes. $n addition to protability and market share
quality drives growth .The linkages between these correlates of quality
are shown in gure%-%.
&uality can also reduce costs. This reduction in turn provides an
additional competitive edge. 'igure %-% includes two types of quality.
(ustomer driven quality and conformance or internal specication
quality
Common themes of these three Gurus
$nspection is never the answer to quality improvement nor is )policing*.
$nvolvement of leadership and top management is essential to the necessary
culture of commitment to quality.
A program for quality requires organi+ation-wide e"orts and long term
commitment accompanied by the necessary investment in training.
&uality is rst and schedules are second.
14 Steps of Crosby
1. Commitment of Management
First and foremost, management must be committed to improving thequality in a company. This commitment must also be transparent to all
employees so that proper attitudes toards a !ero "efect product or serviceline are modeled.
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#. Formulate the $uality %mprovement Team
Forming a quality improvement team is the second step to achieving totalquality management. Searchfor team members ho ill model quality
improvement commitment, and ho are not already over&committed toother pro'ects. The quality improvement team should be able to effectivelycommit themselves to improvement of quality.
(. Measure for $uality in Current )ractices
*efore you can establish a plan for improvingquality, you first have to +no
eactly here your products and services lie hen it comes to conformingto requirements. Thus, the third step on Crosby-s list is to measure
quality. "eterminehere there is room for improvement and here potential
for imrpovement eists.
4. hat ill the Cost of $uality *e/
0o much is your cost of nonconformance to standards/ hat is the cost for
quality/ *y ansering these questions, you can demonstrate to all companyemployees that there is a need for a quality improvement system. plain
ho the cost of quality figures into the overall company plan.
2. $uality 3areness is Central to Success
ou ill need to raise employee aareness to the importance of quality
management. *y doing this, and ma+ing quality a central concern toemployees, you ill increase the li+elihood that your quality improvement
efforts ill be reali5ed.
6. 7emember the $uality )roblems/ Ta+e Corrective 3ction
*y no, you ill have determined hat your company-s quality problemsare. %t is no time to ta+e corrective action to eliminate the defects that
have been identified. *e sure that you install a system, using causal analysistechniques, to ensure that these problems don-t reoccur in the future.
8. )lan for !ero "efects
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ou need to create a committee to ensure that there are 5ero defects in yourproducts and services. For Crosby, it-s not enough, remember to have 9as
fe as possible9 defects. %nstead, you really need to have this number at5ero & establish a 5ero&defect tolerance in your company.
:. )ractice ffective Training for Supervisors
nsure that your supervisors can carry out the tas+s required of them for
maintaining quality. *y practicing supervisor training, ith quality in mind;and the four absolutes
0old a quality event, called a 5ero defects day, here all employees aremade aare of the change that has ta+en place. *y holding a 5ero defectsday in your company hen implementing a total quality management
pro'ect, you can be sure that you are increasing aareness for quality inyour or+place.
1?. %nvolve veryone in @oal Setting
3fter implementing a change, you ill need to ensure that you involve
everyone & both employees and supervisors & in the goal setting process. *ybringing everyone in the company in on setting goals for improvement, you
can ensure greater commitment to achieving 5ero defects.
11. liminate Causes of rrors
rror&cause removal is necessary for the successful implementation of any
quality improvement effort. ncourage your employees to come tomanagement ith any obstacles or issues that arrise in attempting to meet
improvement goals. *y having employees communicate obstacles before
they become crises, you can avert many of the dampers for qualityimprovement efforts.
1#. %mplement 7ecognition for )articipants
The telfth step of Crosby-s 14 Steps is the implementation of employeerecognition. *y regularly recogni5ing those ho participate in quality
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improvement efforts, employees ill be much more li+ely to continue toparticipate.
1(. Create $uality Councils
*y bringing together specialists and employees, you can create a focused
effort toards creating lasting quality improvement implementations. Ma+esure your qualitycouncils meet on a regular basis.
14. Aather...7inse...7)3T>>>
$uality improvement doesn-t end because you have run out of the 14 Steps
of Crosby> %n order to really ma+e improvements in the quality of yourproducts and services, you ill need to do it over again...and again...and
again. Bo go get started on your quality improvement pro'ects>
The advantages of total quality management (TQM) include:
Cost reduction.hen applied consistently over time, T$M can reduce
costs throughout an organi5ation, especially in the areas of scrap, reor+,
field service, and arranty cost reduction. Since these cost reductions flo
straight through to bottom&line profits ithout any additional costs being
incurred, there can be a startling increase in profitability.
Customer satisfaction.Since the company has better products and
services, and its interactions ith customers are relatively error&free, there
should be feer customer complaints. Feer complaints may also mean that
the resources devoted to customer service can be reduced. 3 higher level of
customer satisfaction may also lead to increased mar+et share, as eisting
customers act on the company-s behalf to bring in more customers.
Defect reduction. T$M has a strong emphasis on improving quality
ithin a process, rather than inspecting quality into a process. This not onlyreduces the time needed to fi errors, but ma+es it less necessary to employ
a team of quality assurance personnel.
Morale.The ongoing and proven success of T$M, and in particular the
participation of employees in that success can lead to a noticeable
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improvement in employee morale, hich in turn reduces employee turnover,
and therefore reduces the cost of hiring and training ne employees.
Quality 101: W. Edwads !eming "1# $oints" E%&lained
The need for a or+ing understanding of basic quality management
systemstatistical principles is at the heart of "eming-s teaching. hile
accepting the 3S$-s Shehart Medal in 1=22, he commented that 9Statistical
theory has changed practice in almost everything. Statistical techniques, in
their ability to aid the discovery of causes, are creating a science of
management and a science of administration.9 0is quality process message,
directed primarily at management, is stated succinctly in his famous 1#
$oints fo Management
1)'eateconstancy of &u&ose fo im&ovement of &oduct andsevice.%nspire the or+ers to stay competitive in the mar+et and remind
about the importance of stability in 'obs and ne opportunities hich may
come up in later stages, as inducing a sense of purpose in producing quality
products ill or+ as the inspiration to or+ efficiently.
) do&tthe new &hiloso&hy.The customer demands and taste change
very fast and the competition in the mar+et gro at a rapid rate today, and
e have to accept ne philosophies according to the mar+et trends and
technology revolutions.
*) 'easede&endence on mass ins&ection. %nstead of inspecting the
product for quality after production, infuse quality at the beginning itself
ithproduction quality control, as this ill ensure no ra materials are
asted for the sa+e of quality.
#) Endthe &actice of awading +usiness on &ice tag alone. %nstead,
minimi5e total cost & move toards a single supplier for any item, on trust.
,) 'onstantly and foeve im&ovethe system of &oduction and
sevice.nterprise systems and services must +eep groing indefinitely in
order to catch up ith the competitive mar+et.
-) nstitutemoden methods of taining on the /o+.3 trained or+er
has more productivity and quality than an untrained one, so giving training
sessions ill drastically improve the quality of the person and directly it
helps in better product quality performance.
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) nstitutemoden methods of su&evision.3 company can display
stunning groth if potential leaders are identified and encouraged.
) !iveout fea.Creating a fearful impression in the employees does not
give more quality and productivity to or+. %f a person is not or+ing
illingly ith satisfaction then he can never do a or+ perfectly even if he
has the intention to be perfect in conscious mind, so driving out fear is
essential.
2) 3ea4down+aies +etween staff aeas.The or+ers in design,
sales, and production must or+ together to face problems and resolve
them, hich ta+es the company to better quality assurance
managementand also other profit ith better planning.
10) Eliminatenumeical goals fo the wo4 foce. Slogans orehortations call for more quantity in production than focusing on quality
control in manufacturing, hich ill severely damage the quality
management process. mployees should have a calm and quiet quality
atmosphere in the company.
11) Eliminate wo4 standads and numeical quotas.This focuses on
quantity rather than quality of product.
1) 5emove+aies that hinde the houly wo4e. Supervisor
responsibility must be focused on quality, not numbers. 3bolish annual ormerit rating and M*D completely.
1*) nstitutea vigoous &ogam of education and taining.3 person
must gro after 'oining a company, and letting them learn ne technology
and techniques ill increase employee longevity.
1#) 'eatea situation in to& management that will &ush evey day
on the a+ove &oints.Eust li+e products and services, every employee in a
company must or+ to accomplish the transformation.
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$ualities and traits of great leaders that you can learn and practice
o 6elf7assessment:ffective leaders periodically ta+e stoc+ of their
personal strengths and shortcomings. They as+ hat do % li+e to do/ hat
am % really good at/G hat are my areas of ea+ness, and hat do % disli+e
doing/G
Hnoing your areas of ea+ness does not ma+e you ea+I on the contrary,it allos you to delegate to others ho have those abilities, in order to
achieve the common goal. 7ather than clinging to the false belief that they
can do it all, great leaders hire people ho complement, rather thansupplement, their s+ills. or+ing on your areas of ea+nesses ill improve
your leadership ability J and recogni5ing them ma+es you more human.
o 6ha& &ece&tion:"o you +no ho people really perceive you/
ffective leaders do. They have an easy level of honest communication iththeir teams and their peers, and a thorough understanding of ho they areperceived. Testing othersK perception of you can be as simple as observing
their behavior. 3re your co&or+ers and team members relaed around you/
"oes all conversation stop hen you enter the room/
%f you really ant to +no hat people thin+, 'ust as+ them. ou mayreceive feedbac+ that youKre not listening or shoing appreciation as ell as
you could be. %f youKve established an environment of honest and opencommunication, you should be able to as+ about your good qualities and the
areas you need to improve on. our staff ill appreciate your effort.
o 5es&onsive to the gou&8s needs:*eing perceptive can also help a
leader be more effective in +noing the needs of the team. Some teamsvalue trust over creativityI others prefer a clear communicator to a great
organi5er. *uilding a strong team is easier hen you +no the values and
goals of each individual, as ell as hat they need from you as their leader.
o 9nowing the oganiation:ffective leaders +no the organi5ationKs
overall purpose and goals, and the agreed&upon strategies to achieve these
goalsI they also +no ho their team fits into the big picture, and the part
they play in helping the organi5ation gro and thrive. Full +noledge of yourorgani5ation J inside and out J is vital to becoming an effective leader.
o 'ommunicationJ @ood communication s+ills are required at every
level of business, but leaders must possess outstanding communications+ills. Auc+ily, this is a s+ill that can be learned.
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o Motivating teamsJ %nspiring others is the mar+ of an effective
leader. Motivation is best done by eample and guidance, not by issuingcommands.
o Team +uildingJ )utting together strong teams that or+ ell is
another trait of great leaders. The opposite is also true if a team is ea+and dysfunctional, it is generally a failure in leadership.
o 5is4 ta4ingJ ou can learn ho to assess ris+ and run scenarios that
ill help you ma+e better decisions. @reat leaders ta+e the right ris+s at the
right time.
o ;ision and goal settingJ 3 team depends on its leader to tell them
here they are going, hy they are going, and ho theyKre going to get
there. )eople are more motivated hen a leader articulates his or her vision
for a pro'ect or for the organi5ation, along ith the steps J or goals Jneeded to achieve it.
T
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'haacteistics ?f Effective 'ommunication
The real meaning of communication is getting the receiver and the sender
tuned together for a particular message. Communication ta+es place hen
one person transfers some understandable data to another person. %t also
includes the echange of thoughts, opinions, sentiments, facts, and
information beteen to or more persons. Feedbac+ is very important as itassures that your message should be properly conveyed to the receiver.
The essential features of an effective communication system are +eys for
productive communication. The chief principles or characteristics of an
effective communication system are as follos &
& Clearness and integrity of message to be conveyed.
& 3dequate briefing of the recipient.
& 3ccurate plan of ob'ectives.
& 7eliability and uniformity of the message.& To +no the main purpose of the message.
& )roper response or feedbac+.
& Correct timing.
& Lse of proper medium to convey the message properly.
& Lse of informal communication.
The folloing are some important guidelines to ma+e communication
effective &
& Try to simplify your thoughts before communicating your message.& ou must analy5e the intent of each and every message.
& Consider the overall physical setting henever you communicate.
& ou must discuss ith others, here appropriate, in planning
communication.
& *e careful hile communicating, of the overtone as ell as basic content of
your message.
& Ta+e the opportunity to suggest something of help or value of the receiver.
& Follo&up your communication.
& )repare yourself for transmitting the message in a proper ay.
& *e sure your actions support your communication.
& See+ not only to be understood but understand.
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Characteristics of @ood Communication
Completeness;conteteed+ac4 @ood communication often ill +eep this supply involving
feedbac+. Feedbac+ helps to ensure that this concept offers reached
toards meaning receiver.
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1?. Mutual inteest 3s soon as communication loo+s at the eye
involving equally sender and receiver, it can be dealt ith of the same
quality of good communication. Should the concept ignore the eye of
the receiverI communication may possibly donKt obtain its target.
11. @se of coect language @ood communication often uses
correct language. )roper language avoids uncertain as ell as comple
tet, misleading non&verbal cues, speciali5ed 'argons, poetic tet etc.
1#. 'onsideing the eceive 3 good communicator ponders the
receiverKs understanding, poer, aareness, origin etc. That greater
the poer as ell as acceptability associated ith communication.
1(. @se of coect media Selecting ideal media is etremely
needed for productive communication. This sender needs to choosethe ritten or perhaps common communication depending on the
characteristics as ell as the importance of the concept, availability of
the moment, price, receiverKs poer etc.
14. Em&hasiing on infomal elationshi& This communicator
demand to help give attention to determine laid&bac+ interactions ith
the radio along ith communication romantic relationship mainly
because it guarantees good results associated ith communication.
12. Effective listening This communicator can be a greataudience. She has to concentrate constantly the result on the receiver.
Therefore, the sender needs to possess the opportunity to find out the
receiverKs result constantly having because of endurance.
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6tatistical $ocess 'ontol (6$')
Stat ist ica l methods are analyt ica l too ls used to evaluate men,
ma te ri al s , Machi ne s, or pro ce ss es .valuations obtained by these
methods assist in maintaining desired result by using past history to predict
capabilities or trends. Such analytical methods are management
tools hich furnish data to all levels supervision for appropriate action.
uses s imple but poerfu l graphica l too ls to monitor the
process to improve qual i ty by decreas ing product var iabi l i ty.
This narroing of the l imits of var iabi l i ty does not stop h en
the product meets speci f icat ions, but cont inues thereafter for
cont inuous improvement to ma+e more uni form p roduct. The
ob'ect ive in the use of S)C fundamentals is process
improvement, to f ind and so lve problems and to reduce
var iat ion.
Some advantages of statistical techniques in interpreting engineering data
and controlling manufactured products are
N More uniform at a higher level.
N Aess aste by reduction of reor+ and scrap
N %mproved inspection by better planning and better eecution.
N 0igher production of good parts per man per machine hour.
N %mproved design tolerance.
N *etter plant relations through coordinated effort
6tatistical $ocess 'ontol E%&lained
Statistical )rocess Control ;S)C