ASSIGNMENT No. 1 Course: Total Quality Management (890) Semester: Spring

ASSIGNMENT No. 1

Course: Total Quality Management (890)

Q. 1

Semester: Spring 2009

Eval Evalua uate te the the conc concep eptt of Tota Totall Qu Qual alit ity y mana manage geme ment nt keep keep in view view vari variou ouss organizations. Critically discuss the tools and techniques of Total Quality Management for services organization in detail.

Total Quality Management It is the enhancement to the traditional way of doing business. it is a proven technique to guara guarant ntee ee surv surviv ival al in worl world d clas classs compet competit itio ion. n. Only Only by chan changi ging ng the the acti action onss of  management will the culture and actions of an entire organization be transformed. Total---

Made up of the whole

Quality---

Degree of excellence o product or service.

Mana Manage geme ment nt-----

Act, Act, art, art, or mann manner er of hand handli ling ng,, cont contro roll llin ing, g, dir direc ecti ting ng etc etc..

TMQ is the art of managing the whole to achieve excellence. It is the set of guiding  principles that represent the foundation of a continuously improving organization and application of qualitative methods and human resources to improve all the processes within organization and exceeds needs now and in the future. Its integrates fundamental managem management ent techni technique ques, s, existi existing ng improv improveme ement nt effort efforts, s, and techni technical cal tools tools under under a disciplined approach.

Basic Concept

TMQ have six basic concepts 1. Management Management must must participat participatee in the quality quality program. program. A quality quality council council must must be established to develop a clear vision, set long-term goals, and direct the program. Quality goals are included in the business plan . An annual quality improvement  program is established and involves input from the entire work force. Managers

  participate quality improvement team and also act as coaches to other teams. TQM is a continual activity that must be entrenched in the culture-it is not just a one-shot program. TQM must be communicated to people. 2. The key to to an effectiv effectivee TQM program program is is its focus on the customer customer.. An excellent excellent  place to start is by satisfying internal customers. We must listen to the “voice of  the customer” and emphasize design quality and defect prevention. Do it right the firs firstt time time and ever ever time time,, for for cust custom omer er sati satisf sfac acti tion on is the the most most impor importa tant nt consideration. 3. TQM is an organi organizat zation ion –wide challen challenge ge that that is everyone’ everyone’ss respon responsib sibili ility. ty. All  personnel must be trained in TQM, statistical process control (SPC) , and other  appropriate quality improvement skills so they can effectively participate on  project teams. Including internal customers and, for the matter, internal supplier  on project team is an excellent approach. Those affected by the plan must be involved in its development and implementation. they understand the process  better than everyone else. Changing behavior is the goal. People must come to work not only to do their jobs, but also to think about how to improve their jobs,  people must be empowered at the lowest possible level to perform processes in an optimum level. 4. Ther Theree must must be a cont contin inua uall stri strivi ving ng to impr improv ovee all all busi busines nesss and and prod produc ucti tion on   process. Quality improvement projects, such as on-time delivery, order entry efficiency, billing error rate, customer satisfaction, cycle time, scrap reduction, and supplier management are good places to begin. Technical techniques such as SPC, SPC, benchm benchmark arking ing,, qualit quality y functi function on develo developme pment, nt, ISO ISO 9000, 9000, and design designed ed experiments are excellent for problem solving. 5. On the average average 40 of all all the sales sales is purchased purchased product product or services, services, therefor thereforee the supplier quality must be outstanding. A parenting relationship rather than an adversarial one must be developed. Both parties have as much to gain or lose  based on the success or failure of the product or service. The focus should be on quality quality and life-cycl life-cyclee costs rather than price. Supplies should be few in number  so that true partnering can occur.

6. Perfor Performan mance ce measur measuree such such as uptime uptime percen percentt nonconf nonconform orming ing,, absent absenteei eeism sm and custom customer er satisf satisfact action ion should should be determ determine ine for each functi functional onal area. area. These These measures should be posted for every one to see. Quality data are necessary to measure the continuous quality improvement activity.

Q. 2

Explai Explain n the positio position n of leadersh leadership ip in Total Total Qualit Quality y Managem Management. ent. Criti Critical cally ly discus discusss the characte characteris ristic ticss of an eff effecti ective ve leader leader regardi regarding ng the ensurin ensuring g quality of daily usage products in the present economic circumstances.

Leader Ship The who instills purposes, not one who controls by brute force. A leader strengthens and inspir inspires es the follow followers ers to accomp accomplis lish h shared shared goals. goals. Leader Leaderss shape shape the organi organizat zation ion’s ’s values, promote the organizations vales An organization’s senior leaders should set directions and create a customer focus, clear  and visible values, and high expectations. The directions, values, and expectations should   balanc balancee the needs needs of all your your stakeho stakeholde lders. rs. Leader Leaderss should should ensure ensure the creati creations ons of  strategies, systems and methods for achieving excellence, stimulating innovation and   building knowledge and capabilities. The values and strategies should help guide all activities and knowledge and capabilities. The values and strategies should help guide all activities and decisions of your organization. Senior leaders should inspire and motivate your entire workforce and should encourage all employees to contribute, to develop and learn to be innovative and to be creative. Senior leaders should serve as role models through their ethical behavior and their    personal personal involvement involvement in planning, planning, communicati communication, on, coaching, coaching, development development of future future leader’s review of organizational performance, and employee recognition. As role models manager can reinforce values and expectations while building leadership, commitment and initiative throughout your organization. Characteristics of Quality Leaders

These are the following Characteristics of Quality Leaders

1. They give give priority priority attenti attention on to external external and interna internall customers customers and their their needs. needs. Leaders place themselves in the customers shoes and service their needs from than than pers perspe pect ctiv ive. e. They They cont contin inua uall lly y

eval evalua uate te the the

cust custom omer erss

chan changi ging ng

requirements. 2. Lead Leader erss empow empower er rath rather er than than cont contro rol, l, subo subord rdin inat atee they they have have the the trus trustt and and confi confide denc ncee in the the perfo perform rman ance ce of thei theirr subo subord rdin inat ates es.. They They prov provid idee the the resources, training and work environment to help subordinates to do their jobs. However the decision to accept responsibility lies with in individual. 3. They emphasiz emphasizee improvement improvement rather rather than than maintenance maintenance they they use the phrase phrase “If  “If  it isn’t perfect, improve it” rather than “If it ain’t broke, don’t fix it.” There is always always room for improv improveme ement, nt, even if the improv improveme ement nt is small. small. Major  Major   breakthrough sometimes happen but it’s the little ones that keep the continuous  process improvement on a positive track. 4. They They emphasiz emphasizee preventi prevention. on. “An ounce ounce of prevent prevention ion is a worth worth a pound pound of  cure” is certainly true. It is also true that perfection can be the enemy of  creativity. We can’t always wait until we have created the perfect process or   product.  product. There must be balance balance between between preventing preventing problems problems and developing developing  better, but not perfect process. 5. they they encour encourage age collabor collaborati ation on rather rather than compet competiti ition. on. when when functi functional onal areas, areas, departments, or works groups are in competition, they may find suitable ways of working against each other or withholding information. Instead, there must  be collaboration among and within units. 6. they they train train and coach, coach, rather rather than direct direct and supervi supervise. se. Leaders Leaders know that that the development of the human resource is a necessary. As coaches, they help their  subordinates learn to do better job. 7. They They lear learn n from from prob probllems. ems. When hen a prob probllem exi exists sts it is treat reated ed as an opportu opportunit nity y rather rather than than someth something ing to be minim minimized ized or covered covered up. “what “what caused it?” and “how can we prevent it in the future?” are the questions quality leaders ask.

8. They They cont contin inua uall lly y try try to impr improv ovee comm commun unic icat atio ion. n. Lead Leader erss cont contin inua uall lly y disseminate information about the TQM efforts. 9. They continu continually ally demons demonstrate trate their their commitmen commitmentt to qualit quality. y. 10. They choose suppliers on the basis of quality, not price. 11. they establish organizational system system to support the quality effort. 12. they encourage encourage and recognize recognize team effort. effort.

Q. 3

Explai Explain n the custome customers’ rs’ percep perceptio tion n regardi regarding ng qualit quality. y. Discuss Discuss the the measure measuress to be taken by a manufacturing organization to handle customers’ complaints in order to retain them.

Ans The basic concept of the TQM philosophy is continuous process of improvement. This concept implies that there is no acceptable quality level because the customers needs values and expectation are constantly changing and becoming more demanding. The customers have following perception regarding quality. 1. Perf erform ormance ance.. 2. Features 3. Service. 4. Warranty. 5. Price. 6. Reputation. on. Performance: Its involves fitness for use a phrase that indicates that the product and service is ready for  the customer’s use at the time if sale. Other considerations are 1) availability which is the  probability that a product will operate when needed. 2) reliability is freedom from failure over time 3) maintainability is the ease in keeping and operating product.

Features: Identifiable features or attributes of a product or service are psychological time oriented contrac contractua tuall ethica ethicall and techno technolog logica ical. l. Featur Features es are seconda secondary ry charac character terist istics ics of the

 product or service. For example the primary function of an automobile is transportation whereas a car stereo system is a feature of an automobile.

Service: An emphasis on customer service is emerging as a method for organizations to give the customer added value. However, customer service is an intangible-it is made up of many small things. All geared to changing the customer’s perception. Intangible characteristics are those traits that are not quantifiable, yet contribute greatly to customer satisfaction,  providing excellent customers service is different from the more difficult to achieve than excellent product quality. Organizations that emphasize service never stop looking for  and find findin ing g ways ways to serv servee thei theirr cust custom omer erss bett better er,, even even if thei theirr custo custome mers rs are are not not complaining.

Warranty: The product represents an organization’s public promise of a quality product backed up  by a guarantee of customer satisfactions. A warranty forces the organization has to focus on the characteristics of product and service quality and the importance the customer attaches to each of those characteristics.

Price: Customers are willing to pay higher price to obtain value. Costumers are constantly evaluating one organization’s products and services against those of its competitors to determine who provides the greatest value.

Reputation:

Most of us find ourselves rating organizations by our overall experience with them. Total customer satisfaction is based on the entire experience with the organization not just the  product. Good experience are repeated to six people and bad experience are repeated to 15 people therefore it is more difficult to create a favorable reputation.

Q. 4

Explai Explain n the concep conceptt of proble problem m in contin continuou uouss process process improv improveme ement. nt. Discus Discusss

the different methods of problem solving in detail. Which one is better in your view? Explain with examples.

Quality based organization should strive to achieve perfection by continuously improving the business and production process. And this improving is possible if the organization management learn from the problems and identify the opportunity from the problem. The  process of improvement achieves the greatest result when it operates with in the frame work of the problem solving method. In the initial stages of a program, quick results a frequently obtained because the solutions are obvious or an individual has a brilliant idea. However in the long term a systematic approach will yield the greatest benefits. There are the following phases in problem solving. 1. Identify Identify the Opportunity Opportunity.. The objective objective of this phase is to identify identify and prioritize prioritize opportunities for improvements. It consist of three parts: identify the problem, form the team and define the scope. 2. Analyz Analyzee the current current Process Process.. The objecti objective ve of this phase is to underst understand and the  process and how it is currently performed. Key activities are to define process  boundaries, outputs and customers, inputs and supplies, and process flow; gather  data: and identify root causes. 3. Develo Develop p the optimal optimal Soluti Solution: on: this phase has the objectiv objectivee of establ establis ishin hing g and feasible solutions and recommending the best solution to improve the process. Once Once all the inform informati ation on is availa available ble the project project team team begins begins its search search for   possible solutions. 4. Implement Implement the changes: changes: Once the best solution solution is selected, selected, it can be implemente implemented d this phase has the objective of preparing the implementation plan, obtaining approval, and implementing the process of improvement. 5. Study the the result: result: This phase has the objective objective of monitoring monitoring and evaluatin evaluating g the change by tracking and studying the effectiveness of the improvement efforts thro throug ugh h data data thro throug ugh h data data coll collec ecti tion on and and revi review ew of prog progre ress ss.. It is in inst instit itut utio ional naliz izee mean meanin ingf gful ul chang changee and and ensu ensure re ongoi ongoing ng meas measur urem ement ent and and evaluation effort to achieve continues improvement.

6. Stand Standar ardi dize ze the the solu soluti tion on:: Once Once the the team team is sati satisf sfie ied d with with chang changee it must must be institut institutionali ionalized zed by positive positive control control of the process, process, process process certificat certification, ion, and operator certification. Positive change assure that important variables are kept under control. It specifies the what, who, how, where and when of the process and is an updating of the monitoring activity. Standardizing the solution prevents  backsliding.

Q. 5

Disc Discus usss the the conc concep eptt of ethi ethics cs in Tota Totall Qu Qual alit ity y Mana Manage geme ment nt.. Crit Critic ical ally ly evaluate the relationship and differences between Total Quality Management and Re-engineering in detail.

Ethics Ethics is no a precept that is mutually exclusive from quality. Indeed quality and ethics have a common care premise which is to do right things right.

Its is the body of principles of human conduct that govern the behavior of individuals and organization organizations. s. It is knowing knowing what is the right thing thing to do and is learned when one is growing up, or at later date during an organization’s ethics training program. Ethics is different to different people, especially given an organizations international workforce and the verifying cultural norms. Because individuals have different concepts of what is right, the organization will need to develop the standards or code of ethics for the organization. An ethical management program needs to address pressure, opportunity and attitude mana managi ging ng ethi ethical cal requ requir ires es comm commit itme ment nt,, new polic policie iess and and proc proced edur ures es cont contin inues ues improvement and investments in appraisal, prevention and promotion. The 1st step step is apprais appraisal, al, which which is the analysis analysis of the costs costs associ associate ated d with with unethical behavior. These costs can be divided into the three root causes of pressure opportunity and attitude.

1. Cost of pressure pressure are those costs from well-inten well-intended ded but unethical decisions decisions made under pressure. They include but are not limited to errors, waste, rework, lost customers and warranties. 2. Cost from opportunit opportunity y are those costs from intentio intentional nal wrongdoing. wrongdoing. They include   but are not limited to theft, overstated expenses, excessive compensation and nepotism. 3. Cost Cost from from attitu attitude de are those costs costs from from mistak mistaken en belief beliefss in unethical unethical forms of   behavior. They include but are not limited to error, waste, rework lost customers and health care. The 2nd step is prevention, which is the development of a system that will minimize the costs. Because management has a good idea of the appraisal costs the step can proceed concurrently. 1. Pressure Pressure can can be address address by being involved involved in the developm development ent of goals goals and values values and developing policies that allow for individual diversity, dissent and decision making input. 2. Oppor Opportu tuni nity ty can can be addre address ssed ed by devel developi oping ng polic policie iess that that enco encour urag agee prot protec ectt whis whistl tleb eblo lowe wers rs and and requ requir iree the the exis existe tenc ncee of ombu ombuds dsme men n who who can can work  work  confidentially with people to solve ethical problems internally. 3. Atti Attitu tude de can can be addr addres esse sed d by requ requir irin ing g ethi ethics cs trai traini ning ng for for all all pers person onne nel, l, recognizing ethical conduct in the workplace, requiring performance appraisals to includ includee ethics ethics,, and encoura encouragin ging g open open discus discussio sion n concer concernin ning g ethica ethicall behavi behavior  or  issues. The 3rd step is promotion which is the continuous advertising of ethical behavior in order  to develop on ethical organizational culture that is clear, positive and effective. 1. To be clear the philos philosophy ophy needs needs to be written written,, with input input from all person personnel nel and posted. Standardize ethical training should be given to everyone, to teach then how to clarify ethical issue, encourage them to get the facts before acting, encourage encourage them to consider all the consequences consequences before acting and show them how to test their actions in advance. This testing can be accomplished by asking. It is legal? is it right? Is it beneficial for all involved? And how would I feel if it was published on the front page p age of the newspaper?

2. To be positive positive,, the culture culture should should be about doing doing what is right, right, encouragi encouraging ng  principled organizational dissent, and rewarding ethical behavior. 3. To be effecti effective ve the philosoph philosophy y must be set and and adopted adopted by senior senior manageme management, nt, with input from all personnel senior management should act as they would want others to act and make no exceptions.

The relationship between Total Quality Management and Re-engineering in detail. Re-engineering is the fundamental rethinking and radical redesign process to achieve dramatic improvements in critical measures to performance. Many practitioners believe that TQM is associated with only incremental improvements.