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Quality Way
DMR PandaPMI
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Employees/Aircraft Passenger/EmplIndia 664 153
gapore airlines 341 441France 277 426irates 267 703ish Airway 227 573thansa 185 714ted Air lines 174 953anese Airlines 146 1589
ustry Average 162 986
Source : BW, December 9, 2002
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Why Quality Revolution?
Survival Survival
You may thinking that you are onYou may thinking that you are ona right track, but if you keep ona right track, but if you keep onsitting there some one will oversitting there some one will over
run you.run you. A Japanese saying
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ACHIEVING EXCELLENCE
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History of quality
1450 BC Egypt:1450 BC Egypt: PyramidsPyramids
1750 France:1750 France: Interchangeability ConceptInterchangeability Concept
Upto 1950:Upto 1950: Quality by InspectionQuality by Inspection
1950 65 :1950 65 : Quality assuranceQuality assurance
1965-80:1965-80: Total Quality ControlTotal Quality Control
Beyond 1980s:Beyond 1980s: Total Quality ManagementTotal Quality Management
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What is quality ?
Quality should be aimed at the needs of theconsumer, present and future- Deming
Absenteeism is a function of Poormanagement; if people feel important to a
job, they will come to work Deming
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What is quality ?
Fitness for purpose or use Juran
Quality doesnt happen by accident; ithas to be planned Juran
Defects are Gold in the Mine- Juran
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What is quality ?
Conformance to requirements Crosby
Quality is free - Crosby
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The total composite product and servicecharacteristics of marketing, engineering,manufacture and maintenance throughwhich the product and service in use willmeet the expectation by the customer
Feigenbaum
The Hidden factory-loss to the tune of 40% by not getting it right the first time.
Feigenbaum
What is quality ?
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The totality of features and
characteristics of a product orservice the bear on its ability tosatisfy stated or implied needs
BS 4778, (ISO 8402, 1986) Quality Vocabulary:Part 1
International Terms
What is quality ?
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Quality is Fully meeting agreed requirement
of internal and external customersat a specific cost,
every time,
all the time.
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Basics of TQM
TQM
Customers delight
ContinuousImprovement
Participationby all
ContinuousImprovement-CI is a activelypromoted andencouraged.
Contribution &Participation ispromoted,supportedrecognized and
rewarded
Customer First Thinkingfor customer before anyaction in the organization
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Cause & Effect Diagram for Japanese Products
PoorQuality of
JapaneseProducts
Materials Machine
Methods Man
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TQM by JUSE (1998)
TQM is a set of systematic activities carried out by the entire organization to effectively and efficiently achievecompany objectives so as to provide
products and services with a level of quality that satisfies customers at theappropriate time and price
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What TQM Implies?
TOTAL QUALITY
Participationby allEmployees,in allDepartments,at all
Levels
Using theprocess of build-maintain-improve Quality,thinking in &practicing the
Quality Way
Achieving:
P: PRODUCTIVITY
Q: QUALITY
C: COST
D: DELIVERYS: SAFETY
M: MORALE
MANAGEMENT
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Typical TQM Model
Business Excellence,BSC
Six Sigma, TPM, Benchmarking,ISO
STRATEGIC
OPERATIONAL
PEOPLE INVOLVEMENTKAIZEN
[Quality Circle,Suggestion system, 5 S
]
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I MPRO VEME N T
TIME
KAIFU
KAIZEN
KAIRO
ISO system
DRAM
ISO system
Lean EnterpriseBusiness process re-engineering {BPR}Six sigma
C o r r e
c t i o n
P r e v e n
t i o n
B r e a k t h r
o u g h
i m p r o
v e m e n t s
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Continuous
improvement
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It is a positive attitude through
Existing operation has always a lot of room for improvement
Existing facilities & methods can
always be improved by effortThe accumulated improvementsmakes big difference
Continuous Improvement - KAIZEN
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Worst CompaniesWorst Companies
Top
Middle
Supervisor
Worker M a i n t a i n
Concern
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Breakdown between Maintenance, Kaizen &Improvement
Concern
Improve
Kaizen
Maintenance
Top
Middle
Supervisor
Worker
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Traditional Management Philosophy
GEMBA-The Work Place
CustomersExpectation
CustomersSatisfaction
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GEMBA
ManagementSupport
CustomersExpectatio
n
CustomersSatisfactio
n
Kaizen Philosophy of Gemba Management
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Production
ProductionCapability
Quality Circles
GEMBA
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Quality Circles
Originated in April 1962, by Dr K. Ishikawa
Adopted in India by BHEL-Ramachandrapuram in 1970s.
Made famous in 1982 by Sh ND Tiwari
In 1983, Seminar and training programme was carried out in Vigyan Bhawan for CMDs and Sr. officials..
GEMBA
Lower Mgmt
Middle Mgmt
Top Mgmt
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Quality CirclesQC Circle is a small group, consisting of
Gemba people-First line work place people,work towards improving and maintaining thework place.
GEMBA
Lower MgmtMiddle Mgmt
Top Mgmt
They display creativity, make self development and promoteself-actualization.
Enhance Customer Satisfaction, Safety, reduce fatigue,promote productivity.
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Quality CirclesHigher officials, must necessarily, engagethemselves in a noticeable TQM activity,relevant to other employees like Kaizen, 5S.
GEMBA
Lower MgmtMiddle Mgmt
Top Mgmt
Give Guidance and Support..
Enhance participation of everybody.
Make it evident that QC is not an addendum, butprimary responsibility like other jobs.
We make People before we make it products. M. Matsushita, National Panasonic
GEMBA
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Quality Circles
QC Circle is a Group Oriented Kaizen activity.
Behind every suspenseful QC circle, there is a (an exhausted) Manager, playing invisible but Vital supporting role.
Suggestion system, QC circle shows that employees areactively involved in Kaizen.
QC activities should be made Visually seen by makingbanners, posters---, so that employees are motivated.
GEMBA
Lower Mgmt
Middle Mgmt
Top Mgmt
GEMBA
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Quality Circles
What QC Circle is Not??
It contributed to Japans success alone.
QC is TQM.
QC is for money saving!!
Effectiveness of any Organisation adopting QCC ismeasured by number of QCs.
GEMBA
Lower Mgmt
Middle Mgmt
Top Mgmt
GEMBA
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Quality Circles- The ProcessGEMBA
Lower Mgmt
Middle Mgmt
Top Mgmt
Orientation of all Executives, regardless of hierarchicalposition ( in batches, if not possible at one go )
Orientation of all potential QCC members and solicitingvolunteers.
Each QCC must not have more than 6-8 members.
There is to be facilitator for each QCC and one overall co-ordinator (who has a penchant for Quality, enthusiastic).
Training of QCCs along with the Facilitators, spread over 4-5months.
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Improvement Ideas
Japan: 24 improvement ideas in writingper employee each year
U.S. : Average less than one
United Kingdom: one idea every six years
India: Average 2-3 ideas per employeeper annum (Nestle)
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Improvement Ideas
24/72 Rule in Florida Power & Light, In 24 hours, suggestion is acknowledged
by supervisor
In 72 hours, employees gets a feedbackon status
Lunch with Head-Power Station who gives morethan 10 suggestions that are considered forimplementation
Employees can track their suggestions and gets toknow POINTS accumulated
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Six Honest
Serving Man
Rudyard Kipling , 1865 -1936 from "The Elephant's Child" in Just So Stories
I keep six honest serving men(They taught me all I knew );
Their names are What and Why and WhenAnd How and Where and Who.
I send them over land and sea,
I send them east and west;But after they have worked for me,
I give them all a rest.
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Who is the Customer
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Cost of Quality
1.Cost of Conformance
2.Cost of NonConformance
Cost Of Quality
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Cost Of Quality
Cost of Conformance
Cost of Prevention; eg Training, Planning, design, analysis
Cost of Appraisal, eg Inspecting, checking, auditing, expe
Cost of non Conformance
Cost of Internal Failure, eg prior to delivery, Scrap & rewo Cost of External Failure; eg after delivery, warranty, adju
Good
Bad Ugly
Cost Of Q alit
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Cost Of Quality
Time
Prevention cost
Appraisal cost
Totalcost of Quality
L o s t o p p o r t u n i t y
E x c e e d i n g r e q u i r e m e n t
Internal +External Failure
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Cost of Quality%
TOTAL SALES
Appraisal
Prevention
InternalFailures
ExternalFailures
C O Q
Cost of uality
Cost of Quality
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Cost of Quality
Operating Cost
Profit Cost of Quality, 20-
30 %
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http://www.statgraphics.com/quality_assessment.htm
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Cost of Quality
http://www.pickprints.com/redirect.asp?item=826960&AID=1192851031&PSTID=1<ID=17/31/2019 TQM Overview
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Cost of Quality traditional view
cost
defects
Time
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cost
defects
Time
Cost of Quality TQM View
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1-10-100 Rule
Prevention:Correction:Failure
= 1:10:100
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ity doesnt happen by AcciIt has to be Planned
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TQM Ways
Eastern ways
Western ways
Through Quality Awards
l d
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Quality paradigms
Junk Desired Quality
Bad Business Small, selected market
Quality HighLow
Cost
Low
High
Q lit dig
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Quality paradigms
Low quality at low cost amounts to producing junk for which there is no place in a competitiveworld.
Low quality at High cost amounts to theexploitation of the market and will flourish onlyin a protected market a phenomenon that wascommon before the liberalisation of the
economy in many countries. It also indicatesinefficiency in production.
Q li di
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Quality paradigms
High quality at High cost has a very smalland select market catering only to the smalland affluent section of society.
High quality at low cost is the mostdesirable combination of attributes and the bestmanufacturers aspire to occupy space in thefourth quadrant.
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Some Facts
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Some Facts
1. Its estimated that 80% of lost customer stopdoing business with a company because of Quality problems.
2. It costs five times as much to attract a new
customer as it does to keep a current one.3. A Harvard Business School study found that a
5% decrease in customer defections resulted inprofit increases ranging from 25-85% of
operating earnings.
A S
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A Story
Captain Eddie Rickenbacker was president of EasternAirlines, he demonstrated to top management the impactof poor service. Baggage handling had deteriorated badlyat Eastern, and nothing he had done had improved it. SoRickenbacker called a meeting of his top managers in a
hot Miami hotel with no air conditioning.
When the managers checked in, Rickenbacker had thedesk clerks tell them their bags would be brought to theirrooms. But the bags were locked in a storage areainstead. The managers arrived for the next morningsmeeting mostly unshaved and in dirty clothes.
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Western ways for ensuring Quality
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2. The system for causing Quality is prevention
Western ways for ensuring Quality
Western ways for ensuring Quality
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3. Performance standard is zero defect.
Western ways for ensuring Quality
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Control: Cost of Quality
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Control: Cost of Quality
Case Study: Cost of Poor Quality
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Sunshine Co, a leading manufacturer of tyres in India, was set upat Kota by Sanghi Group in 1970 in technical collaboration withTranstyre Inc of USA. The company has a manufacturing capacityof 1.2 million tyres per year. In view of the strong competition,Sunshine decided to examine its cost of quality.The following data was collected for the financial year 2003-04-
1. Production for the year 512500 nos2. Sales Rs 41 crores3. Scrap tyres: Rs 187. 4 lakh4. Transport of warranty tyres: Rs 2.2 lakh
5. Old stock scrapped : Rs 3.2 lakh6. Incoming inspection: Rs 32. 6 lakh7. QA, Engg: Rs 7.8 lakh
8. Rework: Rs 73.3 lakh9. In process inspection: 32.5 lak10. Process Engg: 30.0 lakh11. Final Inspection:65.9 lakh
12. Warranty returns:408.2 lakh13. Audit insp: 25.2 lakh14. Sold as seconds: 22.8 lakh
Calculate the following:1.Prevention cost, 2. Appraisal cost,3. Failure(Internal/External) costWhat is your comment about the various costs ?What would you recommend ?
y y
P fil f P bl i O i i
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Profile of an Problematic Organisation
1. Outgoing services normally contain deviations fromagreed upon requirement.
2. Organisation has experienced (qualified) personnelfor reworking /rectifying (to keep customers happy)
3. Management doesn't provide a clear performancestandard or defined quality level so employeedevelop their own .
4. Management doesn't know/appreciate price of non
conformance.5. Management denies that it is the cause of the
problem
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ki g S i g
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aking a Swing
aking a Swing
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aking a Swing
aking a Swing
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aking a Swing
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king a Swing
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king a Swing
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Product Quality & Business Quality
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Product Quality & Business Quality
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5 S IN EFFECT
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Shitshuke[Sustain /discipline]
Make a habit of maintainingestablishedprocedures
Seiri[Sorting/organising]
Seiton[Set in order/systematizing/orderliness]
Keeping neededitems in the correctplace to allow foreasy and immediateretrieval
Seiso[Shine/Spic & Span/Clean with inspection]
Keeping theworkplace clean;
the human touch isan essentialprerequisite
Seiketsu[Standardization]
Integrating 3S intoroutine job
Distinguish neededitems from unneeded
items and eliminatethe latter
Problems in Workplace
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Problems in Workplace
Unnecessary stock isoccupying the space of workplace and use of thespace becomesinconvenient.
Making a detour becauseof unnecessary things arekept on the workshop.
It takes some time to findnecessary thing sincemany unnecessary thingsare kept together withnecessary things.
Before After
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Problems in Workplace
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The location of materialis only known by incharge person.
Paper/documentslocation is only knownby in charge person.
The key of a tool box
cannot be found.
Problems in Workplace
5S Level 1 & Level 2
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5S Level 1 & Level 2
Level 1 Good looking working environment
The location of goods are decided Things are kept in order People are following rules Working area is clean
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I S : SEIRI - SORT
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"Sorting" is going through
everything in work area. Keeping only what is necessary.
Moving less frequently useditems to a separate, commonstorage area.
Items not in use to be discarded .
Don't keep things around just because they
might be used, someday, by some body.
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Show no mercy disposing useless items
Mess is like gas, it takes all available space.
SOME ADVANTAGES OF SEIRI SOME ADVANTAGES OF SEIRI
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Eliminates unnecessary items from workplace,frees up space .
Enhances flexibility , because once unnecessary
items have been discarded, only what is neededremains.
Time is saved and productivity is improved.
Saves costs in terms of moving items to theirrightful places (other depts.. Where they areactually needed).
Action Plan for SEIRI
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Define your objectives:Why are you doing Seiri?
Decide where will you do Seiri, andWhere will you store things.
When will you do Seiri?Decide the time plan. Who will do Seiri?
Decide the group members & leader
How will you do Seiri,Decide on the method you will use.
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With all the office paperworknow easy to find, in labelledareas, and on the wall for ease of
Team access, the results weredramatic!
Within 4 weeks SOLAS recordedNO misplaced pieces of paperwork.
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Success Stories at Milton Plastics
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Success Stories at Milton Plastics
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1. Each item traced easily. 1. Unwanted items
removed through SEIRI.1. Missing items detected
immediately.1. 15% search time
eliminated, thus networking time increased.
1. Prevents frustration &distress.
nged drawer ensures easy visibility & simpler mon
Success Stories at Milton Plastics
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Before After / BeforeToilet Workers
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Before After / Before
Before After / BeforeToilet Staff
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Before After / Before
Before After / BeforeLocker Room
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Before After / Before
2S - Seiton (Arranging)
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Easy toStore
Easy toIdentify
Easy toPick up
FIFO Easy toReplenish
Easy to Return toOriginal Location
( g g)Concept - To Arrange Parts for Ease of Use
- To Arrange According to a Rational and Methodical Way
Determine where to locate
Determine where to Store
AS-IS STATE LAYOUTMDs Cabin
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15
14
13
12 10
9
8
7
6
5
4
32 1
In such scenario, the harder employees work, the least productivethey become,.
If such indications are at our office, this is the right time to go for
5s and best opportunity to improve productivity of employees.
Secretarys Desk
DESIRED LAYOUT
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13 12
MDs Cabin
10 9
8
7654321
Desired layout to be made using all visuals, alternatives can bebrainstormed with colleagues
11SecretarysDesk
Filing Cabinets in U-Shape to havefaster and easy accessibility
MAKE A DESIRED LAYOUT BASED ON SEITON GUIDELINES
Eliminating 3 Biggest Culprits
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3 M" MUDA(Waste) " MURI ( Strain )" MURA(Irregularity)
Eliminating 3 Biggest Culprits
Success & Happiness Equations
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Average Organization= Great Organization + MUDA
Great Organization = Average Organization - MUDA
Humans= God + MUDA
God = Humans - MUDA
Good to Great Journey
Happiness Journey
Waste Elimination
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Value Added time : What thecustomer is willing to pay for
37%37%
13%13%
TPM activities, breaks, lunches5S time, team meeting
50%50%
n Valueded time :nnecessary
motionaterial handlingaiting time
ework/ scrapennecessary part
processingxcess inventoryver Production
13%13%
89%89%
7 Seven wastes
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1. Unnecessary Motions1. W aiting for work and materials
2. T ransportations
3.O verproduction4.P rocessing5.Inventories6.C orrective operation
Other Tools
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Suggestion schemesQuality circlesJust in timeTotal Productive MaintenanceTeam Effort
Benchmarking
Process ReengineeringSix Sigma
Golden Rules of TQM
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Golden Rules of TQM
Find Root cause
Ask WHY as many times?
5 W & 1 H
(why, where, when, what, who, how)
Why Why diagram
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Excessive time spentOn correspondence
Too Many Errors Too Many Reviews
Typists NeedMore Training
Need Better Equipment
Standards Not Clear
Fear of Top Boss
The Five Ws and The One H
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Who What Where1. Who does it?
2. Who is doing it?3. Who should be doing it?4. Who else can do it?5. Who else should do it?6. Who is doing 3-Mus?
1. What to do?
2. What is being done?3. What should be done?4. What else can be done?5. What else should be done?6. What 3-MUs are being
done?
1. Where to do it?
2. Where is it done?3. Where should it be done?4. Where else can it be done?5. Where else should it be
done ?6. Where are 3- MU s being
done?
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Quality thruSix Sigma
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Sources:Eero E. Karjalainen: Laatuviesti 4/99, s.26-29Thomas Pyzdek: The Six Sigma Handbookhttp://www.qualitas-fennica.fi/artikkelit/sixsigma.html
Six Sigma Process Improvement Roadmap TheDEMAIC Methodology
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What isimportant?
How arewe doing?
What iswrong?
Whatneeds tobe done?
How do weguarantee
performance?
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BIG Q AND LITTLE q
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All costs that would disappear if everything were perfect.
Costs associated withdeficient manufacturedgoods
COST OF POOR QUALITY
All industries, manufacturingservice, government, etc.,whether for profit or not
ManufacturingINDUSTRIES
All who are affected, externaland internal
Clients who buy theproduct
CUSTOMER
All processes; manufacturingsupport, business etc.
Processes directly relatedto manufacture of goods
PROCESSES
All products, goods and services,whether for sale or not
Manufactured goodsPRODUCTS
Source: Juran on Leadership on Quality
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Assessment Process
CommendationsCommendations for for StrongStrong Commitment to ExcelCommitment to Excel
Commendations for SignificantCommendations for Significant
Achievement Achievement
PrizesPrizes
Award Award (600) + & Role Modal(600) + & Role Modal
((600) + & Best in600) + & Best inthe categorythe categ ory
501 to 600501 to 600
401 to 500401 to 500
CII EXIM BE AWARD Strategic QM
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STRONGCOMMITTMENT
SIGNIFICANT
ACHIEVMENT
PRIZES
CII EXIMAWARD
>> FOUR LEVELS OF RECOGNITION
20052002
TATA MotorsInfosys
2000 TATA Steel
1998 Maruti1997 HP India
CII EXIM Winners
DADRI
Mahindra & Mahindra
Sona Koyo
Sundaram Brake liningsBirla Cellulosic
Hi tech Carbon
DEMING WinnersDEMING Winners
400-500
500-600
600 +
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BUSINESS EXCELLENCE
Broad Improvement Framework
3-4 years journey for WORLD CLASS performance
Dual Strategy of Internal & External Assessment
Assessors Comprehensive Feedback- basis for ImprovementFramework besides organizational Inputs
Time bound improvement plans & implementation
Developing pool of Internal Assessors
Continuous Education & Training on Business Excellence
Sharing & Exchange of experience with external Organizations
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Mission-Vision-Values-Strategy-Outcomes/Results
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MISSIONWhy we exist
VALUES
Whats important to usVISION
What we want to be
STRATEGYOur game plan
BALANCED SCORECARDTranslate, Focus and Align
STRATEGIC INITIATIVESSet priorities for actions necessary to succeed
EMPOWERMENT / PERSONAL OBJECTIVESMotivate employees
STRATEGIC OUTCOMES
SatisfiedSHAREHOLDERS
DelightedCUSTOMERS
Efficient and effectivePROCESSES
Motivated & PreparedWORKFORCE
TOTAL QUALITY MANAGEMENTImprove local processes
Typical Business Excellence Model
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What capabilities, support, direction & tools do ouremployees require, to help them execute ourstrategy
Who are our targeted customers & what isour value proposition in serving them?
To satisfy our customers & share holders, atwhat processes must we excel ?
How we should appear to our stake holders?
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Thank You
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Thank you