3 leadership b.ppt

7/27/2019 3 Leadership b.ppt

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Chapter 3


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Definition of TQMISO 9000 defines TQM as amanagement approach of anorganization, centered on quality,

based on participation of all itsmembers and aiming at long termsuccess through customer

satisfaction and benefits to themembers of the organization andto the society.

TQM is a management approach


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Definition of TQMBritish Standard Institution (BSI),UK Management philosophy andorganization practices that aim to

harness the human and materialresources of an organization.

Other names to represent TQM

Continuous quality improvementTotal quality

Total business management

Organization wide quality


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Elements of TQM


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ea ers p or

TQMHigher echelons of managementhas an important role to play forTQM to be implemented.

Management is solely responsiblefor the success of TQM as it isresponsible for selecting people,

forming teams, providingresources and establishing thesystem in the organization.


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The Deming WayDr. William Edwards Deming

Born 14 Oct 1900

Sioux City, Iowa,

BSEE-Wyoming 1921

MS-Colorado-1925

PhD-Yale-1928

Mathematical Physics

1900-1993


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Demings 14 Points for TopManagement

1. Create constancy of purpose forImprovement of products andservices.

- constant quest for innovation,improvement of processes,products and services.

2. Adapt new philosophy.- eliminations of wastes, delaysand radically changing the work

culture. i.e. JIT, Demings 14


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3. Cease dependence on MassInspection.

- doing things right and doing it

the first time would reduce thedependence on inspection andwill later on be eliminated. TQM

aims at elimination of inspectionthrough prevention.


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4. End the practice of awardingbusiness on the price tag alone.

- Selection of supplier should be

base on the following: Quality

Price

Delivery Service


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5. Constantly improve the systemof production and services.

- constant improvement of

processes.

- practicing Kaizen philosophy(continuous improvement)

6. Institute training.

- Management needs training to

learn about the organization, all the


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7. Adopt and institute leadership

- Senior employees mustconduct themselves as leaders

rather than managers.Leader ManagerProactive Reactive

Coaches Finds Fault

Understands process Doesnt care to

understandMoves around Sits in his chair

Improves processes Maintains process

Communicates

frequently

Communicates rarely

Seeks suggestions Questions


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8. Drive out fear.

- Encourage employees tosuggest improvements and new

ideas and ask about the existingprocess.

- Fear is detrimental to

improvement of processes.


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9. Breakdown barriers betweenstaff areas.

- Encourage the various teams

to communicate with each other.

10. Eliminate slogans,

exhortations and targets for thework force.

- To improve productivity, the system is to

be improved which is the responsibility of

the management.


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11. (a) Eliminate Numerical Quotafor the work force

- Setting targets may affect the

quality of workmanship.

- It forces the worker to ignorequality and concentrate on

quantity.- Instead, standards for qualityworkmanship could be

prescribed.


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11. (b) Eliminate numerical goalsfor people in the Management

- Setting goals without the

necessary resources does notwork.

12. Remove barriers that robpeople of pride of workmanship.

- Establishing the right processes andproper system for quality

management will lead to carrying out


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13. Encourage education and self-improvement for everyone.

- For improving skills or

updating of knowledge

- will improve an employeesability which will be beneficial to

the organization

0 S i f


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10 Strategies for TopManagement

1. Proactive management.

Proactive Management NeedsProper System

- Orderly system, clear roles andresponsibilities, official organizationstructure, set procedures and laid

out system of recording in order toprevent or identify a problem beforeoccurring.

TQM Calls for ProactiveManagement

10 S i f T


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2. Adventurous and bold changemanagement.

Nobody likes Change

- People concerned should beconsulted before change andexplained in detail how the proposed

change is going to be beneficial tothem.

- Processes should be changedproactively by the top management

in an adventurous manner.

10 S i f T


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Change is Essential

-Rethinking and restructuring of theorganization in order for them to be

receptive to the needs of the customers.- Change management is important in aTQM environment and is crucial forcontinuous process improvement ofprocesses and the organization.

a. Be adventurous adventurous decision-

making and high self-esteem among thesenior management is required

b. Be bold Boldness, self-confidence orself-esteem to fi ht lethar amon the

10 St t i f T


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Roles of CEO for Adventurousand Bold Change Management

-The primary responsibility for

adventurous and bold managementlies with the CEO.

- He should have his own boldinitiatives and also supportinnovative change managementinitiated by his employees.

- Confidence bestowed by the CEO

will help them in achieving

10 St t i f T


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3. DIRFT Do it right the first time

Taking Right Decision

Plan the decision weigh the pros

and cons

Foresee the impact of the decisionon the organization

Take the opinion of the rightpeople

Involve the concerned (employeeswho will be affected by thedecision)

10 St t i f T


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Basic requirements of DIRFT

According to Crosby, topmanagement should:

1. Define the requirement for eachemployees

2. Provide wherewithal (resources) to

achieve the requirement3. Keep on motivating and

encouraging the employees.

10 St t i f T


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According to Deming:

a. Right the first time every time

every activity in the organizationshould always incorporatepreventing errors, defects,hassles, demotivation ofemployees, etc.

b. Set right goals Vision, missionand goals of an organization

c. Select right personnel personnel

10 St t i f T


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d. Establish right processes establishment of proper guidelines

and train the employees toperform accordingly.

e. Choose durable raw materials good quality raw materials whichdoesnt call for an inspection.

f. Choose right machinery sincemachinery is expensive, it should

be selected carefully through a

10 St t i f T


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4. Continuous PreventiveAction

Corrective Action is a Post-Mortem

Prevention is better than

cure One shot prevention is not

good enough.

10 St t i f T


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5. Care for Little Things andAccumulate Gains

Caring for small things Communicate with Junior

Employees

Keep on accumulating

10 St t i f T


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6. Ensure EconomicPerformance

Importance of EconomicPerformance

Quality should Increase

Productivity also Talk about success in

Economic Performance

Stakeholders will understand

10 St t i f T


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7. Management by WalkingAround (MBWA)

MBWA was postulated by TomPeters. It can be defined asthe unannounced visit of theCEO to the various work spots

for getting direct and firsthand information from theemployees, the customers and

the suppliers.

10 Strategies for Top


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3 Major Activities duringMBWA

1.Listening

2.Teaching

3.Facilitating

Barriers to PracticingMBWA

- it appears to violate the



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Advantages of MBWA- helps the organization toconsolidate talents, wisdom of

the employees, customer andsuppliers.

- helps the CEO remain intouch with the people,

customers and suppliers andalso make them feel importantwhich results to attracting

more business, improvingualit of su liers



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8. Measure for Success Measure 3 Ps: Process,

Personnel and Product

Pro

duct

Pro

duct

Proc

ess

Proc

ess

PersonnelPersonnel



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PDSA for Measurement popularized by Deming:

PPlan for Measuring SuccessDDo Phase of Measuring

SStudy Phase of Measurement

AAct Phase of Measurement



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Some common measures forthe service industries are:

1. Planned delivery and actual

delivery time2. Repeat customers

3. Perception of the customers

about quality4. Perception amongst

customers about competitors

5. Productivity



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6. Revenue generated peremployee

7. Revenue vs. Expenditure

ratio8. Return on Investment

9. Customer Complaints

10. Rejects in process

11. Rejects at customer site



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9. Never Rest on PastLaurels, Continue to

Improve The Tale of the Tortoise

and Rabbit

The need to ImproveContinuously

1. Cutting costs by doing

things right, the first time



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10. Build a VirtualOrganization

Virtual Integration whatever sub-units,components / materials,

fixtures, etc. needed forthe manufacturing aproduct are all

manufactured by the same



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Requirement for VirtualEnterprise:a. Identify the most critical part/s

b. Identify the other parts

c. Develop / Identity vendors forthe other parts

d. Continuously increase sub-contracting

3 leadership b.ppt

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