What is a Quality Circle?

•work on similar tasks or share an area of work on similar tasks or share an area of responsibilityresponsibility•They agree to meet on a regular basis to They agree to meet on a regular basis to discuss & solve problems related to work.discuss & solve problems related to work.•They operate on the principle that They operate on the principle that employee participation in decision-making employee participation in decision-making and problem-solving improves the quality of and problem-solving improves the quality of workwork

How Do Quality Circles Work?How Do Quality Circles Work?

–CharacteristicsCharacteristics»VolunteersVolunteers»Set Rules and PrioritiesSet Rules and Priorities»Decisions made by ConsensusDecisions made by Consensus»Use of organized approaches to Problem-Use of organized approaches to Problem-SolvingSolving

•All members of a Circle need to All members of a Circle need to receive trainingreceive training•Members need to be empoweredMembers need to be empowered•Members need to have the support of Members need to have the support of Senior ManagementSenior Management

Quality Circles

LEADER / DY LDR

MEMBERS

NON-MEMBERS

FACILATATOR

CO-ORDINATING AGENCY

Top Management

Steering Committee

Quality CirclesAdvantages :-       Quality Improvements       Waste reduction       Attitude Change       Cost reduction       Safety Improvement       Improved Communication       Higher productivity.       Increased Job satisfaction       Team Building.       Improvement in skill.       Increased participation.       Mutual learning.       Problem prevention attitude.       Improved House keeping.

How Can They be Used in an How Can They be Used in an Organization?Organization?

•Increase ProductivityIncrease Productivity•Improve QualityImprove Quality•Boost Employee MoraleBoost Employee Morale

Summary of History and Practices

•Quality Circles were first seen in the Quality Circles were first seen in the United States in the 1950’sUnited States in the 1950’s•Circles were developed by Dr, Kaoru Circles were developed by Dr, Kaoru Ishikawa in Japan in the 1960’sIshikawa in Japan in the 1960’s•Circles were re-exported to the US in Circles were re-exported to the US in the early 1970’sthe early 1970’s

•1980’s brought Total Quality 1980’s brought Total Quality Management and a reduction in the use of Management and a reduction in the use of Quality CirclesQuality Circles•Quality Circles can be a useful tool if Quality Circles can be a useful tool if used properlyused properly

Six SigmaSix Sigma

Six Sigma at many organizations simply Six Sigma at many organizations simply means a measure of quality that strives means a measure of quality that strives for near perfection. Six Sigma is a for near perfection. Six Sigma is a disciplined, data-driven approach and disciplined, data-driven approach and methodology for eliminating defects methodology for eliminating defects "Six Sigma" means a failure rate of 3.4 "Six Sigma" means a failure rate of 3.4 parts per million or 99.9997% perfect parts per million or 99.9997% perfect

Basic Information on Six Sigma

The target for perfection is the The target for perfection is the achievement of no more than 3.4 achievement of no more than 3.4 defects per million opportunitiesdefects per million opportunitiesThe principles can apply to a wide The principles can apply to a wide variety of processesvariety of processesSix Sigma projects normally follow a Six Sigma projects normally follow a five-phase improvement process called five-phase improvement process called DMAICDMAIC

Six Sigma• A Philosophy

• A Statistical Measurement

• A Metric

• A Business Strategy

• make fewer mistakes in all we do

• helps gauge adequacy of product, process and services

• A measuring system

• good quality reduces costA structured Approach to continuous

Improvement6 SIGMA is a simple statistical tool that can be used to measure the quality of your service

As the number of defects or mistakes in the process increases, the number of sigma decreases

In other words the larger the sigma value, the better the service quality

Six Sigma

99.99966% Good (6 Sigma)20,000 lost articles of mail per hour

Unsafe drinking water for almost 15 minutes each day

5,000 incorrect surgical operations per week

Two short or long landings at most major airports each day

200,000 wrong drug prescriptions each year

No electricity for almost seven hours each month

Seven articles lost per hour

One unsafe minute every seven months

1.7 incorrect operations per week

One short or long landing every five years

68 wrong prescriptions per year

One hour without electricity every 34 years

98.930%Good (3.8 Sigma)

Significance

Six Sigma

Wrong drug prescription

Newborn babies dropped by doctors.

Unsafe drinking water

No TV transmission

Short or long landing at an average airport

Incorrect surgical operations

Articles of mail lost

5400 every year.

40500 per year

2 hours each month

27 mins each week

5 per day

1350 per week

54000 per hour

1 in every 25 years

3 per 100 years

1 second every 16 years.

6 seconds in a year

1 in 10 years

1 in 20 years

35 per year

ErrorFor a 3 Sigma Process

For a 6 Sigma Process

Champion / Sponsor Green Belt / Black Belt

Master Black Belt Six Sigma Team

•Define Project•Select MBB, BB and teammembers•Determine needed resources•Orient teams•Review Progress

•Help champion or guidance team select team members•Plan team meetings•Lead meetings•Handle meeting logistics•Make recommendation or changes

•Help Plan meetings•Observe team performance•Coach the team if required

•Participate in the meeting•Help with administrative tasks•Meet with Champion for reviews•Make recommendations or changes

Six Sigma

• The Business Case

• Problem And Goal Statement

• Project Scope

• Milestones

• Roles

Translate Customer Needs Into Specific Requirements

Methods Of Collecting Customer Information

Process Definitions

Connecting The Customer To Your Process

Business Process Mapping

Benefits And Applications Of Process Mapping

AnalyzeMeasure Improve ControlDefineDefine

Process Process MappingMapping

Customer Customer FocusFocus

Team Team CharteringChartering

Why Measure

Input/Output/Process Measures

Where To Measure

Effectiveness And Efficiency Measures

What Is Data

5-Step Process For Collecting Data

Types Of Data

Developing A Data Collection Plan

Understand Variation

Common Cause/Special Cause And Appropriate Action

Graphical Displays Of Data

Run Charts/Control Charts

Why Sigma Measures

Calculating Process Sigma – Discrete Data

Long- And Short- Term Data

Calculating Process Sigma Continuous Data

Why 1.5 Shift

Other Process Capability Measures

AnalyzeMeasureMeasure Improve ControlDefine

VariationVariationData Data

CollectionCollectionMeasurementMeasurement

Six Sigma &Six Sigma &Process Process

CapabilityCapability

Quantify Quantify OpportunityOpportunity

Quantify Quantify And Verify And Verify

CausesCauses

Identify And Identify And Formulate Formulate

CausesCauses

Define Measure Improve Control

Sub process Mapping

Stratification

Cause & Effect Diagrams

Measurement Worksheets

Scatter Diagrams

Process Map Analysis

Advanced Analytical Tools

Piloting Solutions

Determine Opportunity

Display/Package Opportunity

AnalyzeAnalyze

Control

Generate Ideas

Assumption Busting

Synthesize Solutions

Narrow List Of Solutions

Solution Criteria

Validated Solution

Piloting

Project Planning

Change Management Strategy

Potential Problem Analysis

ImproveImproveDefine Measure Analyze

ImplementationImplementationPlanningPlanning

Select Select SolutionsSolutions

Generate Generate SolutionsSolutions

Define Measure ImproveAnalyze

MonitoringMonitoring Documenting Documenting StandardizingStandardizing

ControlControl

Response PlanResponse Plan

LeadershipDefinitions : There is no universal definition of leadership         In his book Leadership, James Macgregor Burns

describes a leader as one Who instils purposes, not one who controls by brute force.

         A leader strengthens and inspires the followers to

accomplish shared goals.          Leaders shape the organization’s values, promote

the organization’s values, protect the organization’s values and exemplify the organization’s values.

Leadership        Ultimately, Burns says, “Leaders and followers raise

one another to higher levels of motivation and morality… leadership becomes moral in that it raises the level of human conduct and ethical aspiration of both the leader and the led, and thus has a transforming effect on both.”         Similarly, Daimler Chrysler’s CEO Bob Eaton defines a leader as “…someone who can take a group of people to a place they don’t think they can go.”         “Leadership is we, not me; mission, not my show;

vision, not division; and community, not domicile.”

LeadershipCharacteristics of Quality Leaders:-

 

1. They give priority attention to external and internal customers and their needs2. They empower, rather than control, subordinates3. They emphasize improvement rather than maintenance4. They emphasize prevention5. They encourage collaboration rather than competition6. They train and coach, rather than direct and supervise7. They learn from problems8. They continually try to improve communications9. They continually demonstrate their commitment to quality.10. They choose suppliers on the basis of quality, not price11. They establish organizational systems to support the quality effort. 12. They encourage and recognize team effort

LeadershipLeadership Concepts:. To be effective, a leader understands that:People, paradoxically, need security and

independence at the same time. People are sensitive to external rewards and

punishments and yet are also strongly self- motivated.

People like to hear a kind work of praise. Catch people doing something right, so you can

pat them on the back.4. People can process only a few facts at a time; thus,

a leader needs to keep things simple. People trust their gut reaction more than statistical

data. People district a leader’s rhetoric if the words are

inconsistent with the Leader’s actions.

LeadershipThe 7 Habits of Highly Effective People:

Knowledge Skill

Desire

HABIT

LeadershipHabit 1: Be Proactive

Reactive

There’s nothing I can do

She makes me so mad

I have to do that

I can’t

I must

Things are getting worse.

Proactive

Let’s look at our alternativesI control my own feelingsI will choose an appropriate response.I choose

I prefer.

What initiative can we use?

LeadershipHabit 2: Begin with the End in MindHabit 3: Put First Things First  

Urgent Not UrgentImp

ortan

t

ICrises, fire-fighting

Pressing Problems

Deadline driven projects

IIPrevention, PC

Relationship building

Recognizing new opportunities

Planning, recreation.

No

t Imp

ortan

t

III

Interruptions, pressing matters

Some mail, calls, report

Some meetings, proximate

Popular activities.

IV

Trivia, busy work

Time wasters

Pleasant activities.

LeadershipHabit 4: Thing Win-Win 

In order to obtain win-Win, a four-step process is needed: (1) see the problem from the other viewpoint, (2) identify the key issues and concerns, (3) determine acceptable results, and (4) seek possible new options to achieve those results.

Habit 5 : Seek First to Understand, (Emphatic) The to Be Understood.(ethos(your personal

credibility or character , pathos(empathy u’have) and logos(logic or reasoning part of your presentation.

Habit 6: Synergy. Habit 7: Sharpen the Saw (Renewal).

Leadershipthe four dimensions of your nature—physical, spiritual, mental, and social/emotional. All four dimensions of your nature must be used regularly in wise and balanced ways. Renewing the physical dimension means following good nutrition, rest and relaxation ,and regular exercise. The spiritual dimension is your commitment to your value system. Renewal comes from prayer, meditation, and spiritual reading. The mental dimension is continuing to develop your intellect through reading, seminars, and writing. These three dimensions require that time be set aside

LeadershipThe seven habits are a highly integrated approach that moves from dependency (you take care of me) to independence (I take care of myself) to interdependence (we can do something better together). The first three habits deal with independence-- the essence of character growth. Habits four, five and six deal with interdependence-- teamwork, cooperation and communication. Habit seven is the habit of renewal.

LeadershipEthicsEthics is a body of principles or standards of human conduct that govern the behaviour of individuals and organizations. It is knowing what is the right thing to do and is learned when one is growing up, or at a later date during an organization’s ethics training program.

The Root Causes of Unethical Behavior:

 Much of the unethical behaviour in organizations occurs when:

1. Organizations favour their own interests above the well-being of their customers, employees, or the public.

 2. Organizations reward behaviour that violates ethical standards, such as increasing sales through false advertising.

3. Organizations encourage separate standards of behaviour at work than at home, such as secrecy and deceit versus honesty.

Leadership4 Individuals are willing to abuse their position and power to

enhance their interests, such as taking excessive compensation for themselves off the top before other stakeholder5s receive their fair share.

 5 Managerial values exist that undermine integrity, such as the

pressure managers exert on employees to cover up mistakes or to do whatever it takes to get the job done, including cutting corners.

 6 Organizations and individuals overemphasize the short-term

results at the expense of themselves and other in the long run; for example behaviour is good based on the degree of utility, pleasure, or good received, regardless of the effect on others.

7.Organizations and managers believe their knowledge is infallible and miscalculate the true risks, such as when financial managers invest organizational funds in high-risk options trading.

LeadershipEthics Management Program. The first step is appraisal The second step is prevention The third step is promotion.

Role of TQM Leaders.Everyone is responsible for quality, especially senior management and the CEO; however, only the latter can provide the leadership system to achieve results.

Senior management has numerous responsibilities • practice the philosophy of Management by Wandering Around • make sure the team’s decision is aligned with the quality statements of the organization.(no self final decision)

Leadership• stay informed on the topic of quality improvement.

• must find time to celebrate the success of their organization’s quality efforts.(Books , Seminar etc )

•must be visible and actively engaged in the quality effort

• listening to internal and external customers and suppliers through visits, focus groups, and surveys

• very important role is communication.

Implementation 

commitment. involvement is required

needs to be educated in the TQM concepts

Timing of the implementation process can be very important

 Formation of the quality council-- The development of core values, a vision statement, a mission statement, and a quality policy statement, with input from all personnel, should be completed first.

LeadershipThe active involvement of middle managers and first-line supervisors is essential to the success of the TQM effort. to communicate TQM to the entire organization. Everyone needs to be trained in quality awareness and problem solving Customer, employee, and supplier surveys must be conducted to benchmark the attitudes of these three stakeholders. Information from these surveys provides ideas for quality improvement projects.

Quality Council In general, the duties of the quality council are to: 1. Develop, with input from all personnel, the core values, vision statement, mission statement, and quality policy statement.

2. Develop the strategic long-term plan with goals and the annual quality improvement program with objectives.

3.Create the total education and training plan

4. Determine the performance measures for the organization, approve those for the functional areas, and monitor them

5. Determine the performance measures for the organization, approve those for the functional areas, and monitor them .

6. Continually determine those projects that improve the processes, particularly those that affect external and internal customer satisfaction

7. Establish multifunctional project and departmental or work group teams and monitor their progress

8. Establish or revise the recognition and reward system to account for the new way of doing business .

Leadership

LeadershipCore Values, Concepts, and Framework.Core Values, Concepts, and Framework.  Customer-Driven Excellence Organizational and Personal Learning

Organizational learning refers to both continuous improvement of existing approaches and adaptation to change, leading to new goals and approaches. Organizational learning can result in (1) enhancing value to customers through new and improved products and services; (2) developing new opportunities; (3) reducing errors, defects, waste, and related costs; (4) improving responsiveness and cycle time performance; (5) increasing productivity and effectiveness in the use of all resources; and (6) enhancing your organization's performance in fulfilling its public responsibilities and service as a good citizen. Personal learning can result in (1) more satisfied and versatile employees who stay with the organization, (2) organizational cross-functional learning, and (3) an improved environment for innovation

LeadershipValuing Employees and Partners 

Valuing employees means committing to their satisfaction, development, and well-being. Increasingly, this involves more flexible, high- performance work practices tailored to employees with diverse workplace and home life needs. For example, Southwest Airlines always puts customers second, and employees first. Organizations need to build internal and external partnerships to better accomplish overall goals. Internal partnerships might involve creating network relationships among your work units to improve flexibility, responsiveness, and knowledge sharing.External partnerships might be with customers, suppliers, and education organizations .

LeadershipAgility Focus on the Future

A focus on the future includes developing employees and suppliers, creating opportunities for innovation, and anticipating public responsibilities. Managing for Innovation . Management by Fact Public Responsibility and Citizenship Focus on Results and Creating Value Systems Perspective

LeadershipQuality Statements Vision Statement.

short declaration of what an organization aspires to be tomorrow.

Successful visions provide a succinct guideline for decision-making. An example of a simple, one-sentence vision statement is We will be the preferred provider of safe, reliable, and cost-effective products and service that satisfy the electric-related needs of all customer segments.

FLORIDA POWER & LIGHT

COMPANY

LeadershipSuccessful visions are timeless, inspirational and become deeply shared within the organization, such as IBM’s service, Apple’s computing for the masses, Disney theme park is the happiest place on earth and Polaroid’s instant photography.

Mission StatementThe mission statement answers the following questions: who we are, who are the customers, what we do, and how we do it. describes the function of the organization.An example of a mission statement is  Ford Motor Company is a worldwide leader in automatic and automotive-related products and services as well as the newer industries such as aerospace, communications, and financial services. Our mission is to improve continually our products and services to meet our customers' needs, allowing us to prosper as a business and to provide a reasonable re- o turn to our shareholders, the owners of our business. FORD MOTOR COMPANY

LeadershipA simpler mission statement isTo meet customers' transportation and distribution needs by being the best at moving their goods on time, safely and damage free. CANADIAN NATIONAL RAILWAYS.

Quality Policy Statement The quality policy is a guide for everyone in the organization as to how they should provide products and service to the customers.

A simple quality policy isXerox is a quality company. Quality is the basic business principle for Xerox. Quality means providing our external and internal customers with innovative products and services that fully satisfy their requirements. Quality is the job of every employee.

XEROX CORPORATION

LeadershipGoals and Objectives They have basically the same meaningGoals are for long-term planning Objectives for short-term planning. The goal is to win the war; the objective is to capture the bridge.

Concrete goals are needed to provide a focus, such as improve customer satisfaction, employee satisfaction, and processes. Goals can force changes in leadership style from reward and

punishment to identifying and improving system problems. Goals must be based on statistical evidence The most important characteristic of goals is that they be measurable. Only measurable goals can be evaluated.Goals must be challenging yet achievable Objectives. are operational approaches to attain the goals.

LeadershipSeven Steps to Strategic Planning 

Customer NeedsCustomer PositioningPredict the FutureGap AnalysisClosing the GapAlignment.Implementation

 Annual Quality Improvement ProgramCommunicationsInteractiveFormalDecision Making

CUSTOMER SATISFACTION

CUSTOMER SATISFACTION

Customer

Front-line representative

Functional operational areas

Senior managers

CEO

Customer

Front-line representative

Functional operational areas

Senior managers

CEO

CUSTOMER SATISFACTION

Customer satisfaction model

CUSTOMER SATISFACTION

Inputs from

External Customers

Internal Customers

Outputs to

external Customer

s

(ASQ) survey on end user perceptions of important factors that influenced purchases showed the following ranking:

 1.      Performance2.      Features.3. Service4. Warranty5. Price6. Reputation.

CUSTOMER SATISFACTIONFeedbackCustomer feedback must be continually solicited and monitored. Feedback enables the organization to :Discover customer dissatisfaction.Discover relative priorities of qualityCompare performance with the competition.Identify customer’s needs. Determine opportunities for improvement.HOW ?Comment Card ,Customer Questionnaire , Focus Groups ,Toll-Free Telephone Numbers,Customer Visits, The Internet and Computers,Employee Feedback,Mass Customisation.

CUSTOMER SATISFACTIONTo make surveys more useful, it is best to remember eight points.1.                Clients and customers are not the same.2.                Survey raise customers’ expectations.3.                How you ask a question will determine how the question Is answered.4.                The more specific the question, the better the answer.5.                You have only one chance and only 15 minutes.6.                The more time you spend in survey development, the less time you will spend in data analysis and interpretation.7.                Who you ask is as important as what you ask.8.                Before the data are collected, you should know how you want to analyse and use the data.

Customer Satisfaction Index :-American Satisfaction IndexSatisfaction Index developed by self.

CUSTOMER SATISFACTIONService QualityElements of customer service are:OrganizationCustomer Care CommunicationFront-line people Leadership

Characteristic ExpectationDelivery Delivered on schedule in undamaged conditionInstallation Proper instructions on set-up, or technicians supplied for

complicated productsUse Clearly-written training manuals or instructions provided on proper

useField repair Properly-trained technicians to promptly make quality repairs

Customer service Friendly service representatives to answer questions

Warranty Clearly stated with prompt service on claims