1. CMR IT- JESSY NAIRIV Sem – A & B ‘09 M3: Managing for Quality and high performance

2. CMR IT- JESSY NAIRIV Sem – A & B ‘09 Module No.Topic 3Managing for Quality and High Performance 3.2 Customer involvement and focus 3.3 Designing product and process for quality 3.4 Developing supplier partnership, customer services 3.5 Employee involvement and empowerment 3.6 Quality at the source 3.7 Quality circles, TQM models, quality standards and awards 3.8 ISO 9001 – 2000, ISO 14000, QS 9000 3.9 Deming Prize, Malcolm Baldrige Quality awards 3.10 European quality awards 3.11 Designing high performance work teams, training, team work and cooperation, compensation and recognition 3.12 Overcoming resistance to change, employee motivation and performance 3.13 Appraisal for achieving high quality performance. 3.14 Case

3. CMR IT- JESSY NAIRIV Sem – A & B ‘09 Leadership  James MacGregor Burns One who instills purposes,not one who controls by brute force  Daimler Chrysler’s CEO Bob Eton “….Someone who can take a group of people to a place they don’t think they can go

4. CMR IT- JESSY NAIRIV Sem – A & B ‘09 Total Quality Mgmt Excellence Model TQMEX Model Is an integrated approach for managing quality Used in order to support the transition to systems management Ongoing process of CI Begins when the company commits itself to managing by quality The model illustrates the elements that form the basis of TQM Philosophy Thus the TQMEX model includes universally applicable step-by-step guidelines by including the practices in TQM represented in the block diagram ( Fig3.1)

5. CMR IT- JESSY NAIRIV Sem – A & B ‘09 Total Quality Mgmt Excellence Model 5S TQM BPR QCC QMS ( ISO) TPM Fig 3.1 : TQMEX Model OPERATIONS MANAGEMENT QUALITY MANAGEMENT Japanese 5S Practice Business Process Reengineering Quality Control Circles Quality Mgmt Systems Total Productive Mgmt

6. CMR IT- JESSY NAIRIV Sem – A & B ‘09 Japanese 5S practice Key to Total Quality Environment Technique used to establish and maintain quality environment in an organization Physical environment / Thinking environment JapaneseEnglishMeaning SEIRIStructuriseOrganize SEITONSystemizeNeatness SEISOSanitizeCleaning SEIKETSUStandardizeStds SHITSUKESelf - Discipline Discipline

7. CMR IT- JESSY NAIRIV Sem – A & B ‘09 5S Practice Key to Total Quality environment Technique used to establish and maintain quality environment in an organization Physical environment improves thinking process 1. Seiri: Separating things which are necessary Necessary vs unnecessary Convenient location Areas: Work in process(WIP) Unnecessary tools Unused machinery Defective products Papers and documents Stratify, differentiate between N&W. One is best.

8. CMR IT- JESSY NAIRIV Sem – A & B ‘09 5S Practice…. 2. Seiton: Orderly arrangement ………. To use when required Neatness …… increases efficiency Ways:s Analyse the status quo Decide where things belong Decide how things should be put away Obey the put away rules 3. Seiso : Workplace cleanliness 4. Seiketsu Individual cleanliness and environment Emphasize visual management and standardization

9. CMR IT- JESSY NAIRIV Sem – A & B ‘09 5S practice…. 5. Shitsuke Instill it is a habit Discipline a process of repetition and practice Instill it as a value

10. CMR IT- JESSY NAIRIV Sem – A & B ‘09 Quality Management Systems (QMS) The International Standards Organization – ISO ( class presentation by student group)

11. CMR IT- JESSY NAIRIV Sem – A & B ‘09 Total Productive Management (TPM) Note: This topic will be a separate lecture

12. CMR IT- JESSY NAIRIV Sem – A & B ‘09 Core concepts of TQM Quality for profit Right first time Acceptable Quality Levels Cost of quality : 4 categories 1.Failure Costs 2.Appraisal Costs 3.Prevention Costs 4.Hidden Costs

13. CMR IT- JESSY NAIRIV Sem – A & B ‘09 TQM – 5 Pillars Product Process System People Leadership Fig 3.2 Five Pillars of TQM Hard Aspects Confluence Soft Aspects Suitability Effectiveness

14. CMR IT- JESSY NAIRIV Sem – A & B ‘09 Characteristics of Quality Leaders Priority Attention to External and Internal Customers Empower Subordinates Improvement than maintenance Prevention than Cure Coordination than Competition among Depts Training & Guide than Directing and Controlling Learn from problems Communication –Top to lower Mgt- vice versa Commitment to Quality Suppliers Based Quality not Price Organization Structure – Quality Encourage Team Work

15. CMR IT- JESSY NAIRIV Sem – A & B ‘09 7 Habits of Highly Effective People By Dr. Stephen R.Covey Habit 1 :-Be Proactive (“You are the Creator & In charge) Reactive Proactive There is nothing I can doLet’s Look at our alternatives She makes me so madI control my feelings I have to do that.I will choose proper response I can’tI choose I mustI prefer Things are getting worseWhat initiative can we use ?

16. CMR IT- JESSY NAIRIV Sem – A & B ‘09 Habit-2 Begin with the end in mind Mental creation & Physical creation=Leadership & Management Based on Personal philosophy  Honesty  Positive Attitude  Remember the people  Sense of humor  Do not fear mistakes  Encourage Subordinates  Read Books for leadership Developments

17. CMR IT- JESSY NAIRIV Sem – A & B ‘09 Habits-3 Put first Things First (Self Management) Management of Time Urgent Not Urgent I II IV III Important Not Important Crises,Firefight Pressing Problems Deadline Driven Projects (KEY ROLES) Prevention,Preventive & Corrective actions Relationship Building New Opportunities (YOUR OBJECTIVE) Interruptions,Pressing Matters Some Mails,Calls,Reports Popular Activities Busy Work Time Wasters Pleasant Activities (SCHEDULE TIME)(WEEKLY SCHEDULE)

18. CMR IT- JESSY NAIRIV Sem – A & B ‘09 Habit-4 Think Win Win (Benefit all Human Interactions) Four step process: See the Problem From Others View. Identify Key Issues. Determine and Analyze Results. Seek New Options To Achieve Results.

19. CMR IT- JESSY NAIRIV Sem – A & B ‘09 Habit-5 Seek First to understand, then to be Understood o Empathic Listening to what others SAY o Understand Person’s Emotions and Intellectual, Credit or Character.

20. CMR IT- JESSY NAIRIV Sem – A & B ‘09 Habit-6 Synergy (Whole >Parts) Team Achieves More Than Individual Efforts Habits 5 Integrates towards Habits 6 Coordination & Understanding Reaches Better Solutions.

21. CMR IT- JESSY NAIRIV Sem – A & B ‘09 Habit-7 Sharpen the Saw (Renewal) Four Dimensions personal Nature  Physical –Good nutrition,Rest &Relaxation  Spiritual- Prayer,Meditation &Spiritual Reading  Mental – Reading,seminars, & Writings  Social/Emotional –Our Relationship with others.

22. CMR IT- JESSY NAIRIV Sem – A & B ‘09 Ethics Ethics is body of principles of human conduct that govern the behavior of individuals & organizations. Ethics Means something different to Different People, especially International Workforce & Vary Culture. Causes of unethical behaviour in organization : 1.Favors their own interests 2.Sales – through false advertising 3.Individuals Abuse their position & power 4.Favors short term results 5.Decisions based on Assumptions

23. CMR IT- JESSY NAIRIV Sem – A & B ‘09 Ethics Management Program An ethics management program needs to address pressure, Opportunity and Attitude. Three Steps in EMP: Appraisal -The analysis of the costs associated with unethical behaviour. Prevention - The development of a system that will minimize costs. Promotion - The continuous advertising of ethical behaviour in order to develop an Organizational Culture.

24. CMR IT- JESSY NAIRIV Sem – A & B ‘09 What must organizations do for quality to succeed “Organizations must adopt a cultural change that appreciates the primary need to meet customer requirements, implements a management philosophy that acknowledges this emphasis, encourages employee involvement, and embraces the ethic of continuous improvement.” International Economic Conference Board Report: May 1990

25. CMR IT- JESSY NAIRIV Sem – A & B ‘09 Transition to quality culture at Xerox Transition Team Training Senior Management Behavior Xerox Culture Change Tools and Processes Communication Reward and Recognition

26. CMR IT- JESSY NAIRIV Sem – A & B ‘09

27. CMR IT- JESSY NAIRIV Sem – A & B ‘09 Allaire’s approach

28. CMR IT- JESSY NAIRIV Sem – A & B ‘09 Managing-by-process principles 1. Make all decision and perform all actions within the guidelines of the "what to's" of the core business processes and their impact on other core processes. 2. Establish owners for all core business processes and sub-processes. 3. Designate these owners as responsible for the maintenance and use of that process, with their reward tied to the successful functioning of that process for all Xerox personnel. 4. Empower the owners of the process with the responsibility for continuously improving those core processes, and reengineering them when necessary. 5. Constrain core process and sub-process owners from making changes to their core processes that may affect other core processes that are owned by other managers. 6. Designate responsibility for a change in a core process to the highest-level owner of a core process that is being changed because core sub-processes are being changed by lower-level process owners.

29. CMR IT- JESSY NAIRIV Sem – A & B ‘09 IBM’s market driven quality program Leadership Vision Involvement Policy Management Systems Information Planning Human resource Quality assurance Quality Results Improved quality Lower costs Customer Satisfaction Market Success “Driver”System Measures of Progress Goal

30. CMR IT- JESSY NAIRIV Sem – A & B ‘09 IBM’s “new” CEQ initiative “CEQ aims to instill a commitment in organizations to embrace quality as a guiding principle that touches every phase of the software development and deployment cycle. Organizations must build quality in, not treat it as an afterthought. Every individual in an organization, from the business analyst to the IT operator, can improve application quality through vigilance and a shared sense of responsibility for business and customer success.”

31. CMR IT- JESSY NAIRIV Sem – A & B ‘09 What are some of the steps organizations must take? Effectively develop and communicate quality policy, procedures and requirements across all company functions. Mobilize resources to solve quality-related problems. Effectively coordinate quality requirements with suppliers. (feed forward) Maintain direct contact with customers (feedback).

32. CMR IT- JESSY NAIRIV Sem – A & B ‘09 Communicating quality requirements Examples of formal communication: –Quality Policy Statement –Quality Manuals –ISO 9000 quality standards Examples of informal communication: –Word of mouth –Management actions

33. CMR IT- JESSY NAIRIV Sem – A & B ‘09 Quality - basic beliefs Ford Quality is job one; t here's a Ford in your future Chrysler "If you find a better car, buy it!" (Spoken by Lee Iacocca) Serta “We make the world's best mattress” CaterpillarStrong dealer support; 24-hour spare parts support around the world McDonaldsFast service, consistent quality

34. CMR IT- JESSY NAIRIV Sem – A & B ‘09 Quality policy statement Most companies today have a written quality policy or mission statement –For example, “It is the established policy and intention of this company to provide its customers with products which conform to customer requirements and are delivered on time. This will be ensured through a defined quality program as detailed in the company quality manual.” Some companies rely on verbal quality policies. for example, –“our goal is to ensure customer satisfaction and minimize rejects.”

35. CMR IT- JESSY NAIRIV Sem – A & B ‘09 Other examples Goodyear: “our mission is constant improvement in products and services to meet our customers’ needs. This is the only means to business success for Goodyear and prosperity for its investors and employees.” Motorola - “all employees at Motorola must consistently strive for a six sigma target.” Motorola – “Doing the right thing. Every day. No excuses.” The bottom line: Organizations must demonstrate what Deming termed “ constancy of purpose ”.

36. CMR IT- JESSY NAIRIV Sem – A & B ‘09 Identifying and resolving quality problems Quality problems transcend individual and functional boundaries. Companies need multi- discipline problem solving.

37. CMR IT- JESSY NAIRIV Sem – A & B ‘09 Organizational approaches for multidiscipline problem solving Form cross functional teams. –Quality improvement teams –Quality circles Adopt matrix versus functional organizational structure. Co-locate engineering resources to open communication channels. –Engineering technical centers/Centers of expertise

38. CMR IT- JESSY NAIRIV Sem – A & B ‘09 Coordinating quality requirements with suppliers Importance of supply chain management –Many quality problems are caused by defective purchased material (Crosby 50%). –Suppliers often represent a large % of manufacturing costs.

39. CMR IT- JESSY NAIRIV Sem – A & B ‘09 Strategies for supplier relationships

40. CMR IT- JESSY NAIRIV Sem – A & B ‘09 Quality Improvement Teams: Roles for QI teams In addition to solving quality problems, QI teams help: provide a means of participation for employees in quality decision-making. aid employee development: leadership, problem-solving skills. lead to quality awareness which is essential for organizational culture change.

41. CMR IT- JESSY NAIRIV Sem – A & B ‘09 Types of quality improvement teams Project teams Quality circles

42. CMR IT- JESSY NAIRIV Sem – A & B ‘09 Principle’s of Customer & Supplier Partnership by Dr Kaoru Ishikawa Customer & Supplier are fully Responsible for Control for Quality. Customer & Supplier are Independent of each other. Customer’s must be given full Information about the raw material, semi finished products (or) services required. Clear Contract regarding Quality, Quantity, Price, Delivery Modes, Etc.

43. CMR IT- JESSY NAIRIV Sem – A & B ‘09 Principle’s of Customer & Supplier Partnership by Dr Kaoru Ishikawa Evaluation of Same Quality Standards by Both the Customers & Suppliers Problem Solving By Discussion Exchange Information & Feed Back Both Customer & Supplier do Business transaction w.r.t. END USER.

44. CMR IT- JESSY NAIRIV Sem – A & B ‘09 PARTNERING Long Term Commitment Trust Shared Vision SOURCING  Sole  Multiple  Single

45. CMR IT- JESSY NAIRIV Sem – A & B ‘09 SUPPLIER SELECTION BASED ON Quality Philosophy of the Customer Stable Management High Technical Standards With Future Raw materials & Parts Meet Quality Std Delivery as per Schedule Effective Quality System Record of Customer Satisfaction Credibility in Industries

46. CMR IT- JESSY NAIRIV Sem – A & B ‘09 Supplier Rating Quality On Time delivery Service Internal Structure Customer Satisfaction Review Reports

47. CMR IT- JESSY NAIRIV Sem – A & B ‘09 Potential Pitfalls of Partnership Fear of Unknown Concept Starting Early Poor Communication Impatience Mistrust Over dependency Time & Resources

48. CMR IT- JESSY NAIRIV Sem – A & B ‘09 Project team characteristics Teams address key organizational issues concurrent engineering ISO 9000 implementation membership - generally mandatory temporary in nature participation is cross-functional team leaders have varying degrees of authority

49. CMR IT- JESSY NAIRIV Sem – A & B ‘09 Quality circle characteristics Voluntary groups of 6-8 members Quality circle teams are semi-permanent Teams are from single functional department Members have equal status and select their own project Minimum pressure to solve problems with a set time frame

50. CMR IT- JESSY NAIRIV Sem – A & B ‘09 Implementing quality circles Quality circles require top management support Personal characteristics of facilitators are critical Scope of project needs to be small enough to be capably addressed by the team Success of other teams has positive peer pressure effect

51. CMR IT- JESSY NAIRIV Sem – A & B ‘09 Implementation Japan- highly successful –Widely publicized quality circles –Product development teams U.S. - marginal success –Product development teams have succeeded more so than quality circle teams

52. CMR IT- JESSY NAIRIV Sem – A & B ‘09 Concurrent engineering project teams Concurrent engineering teams are having success - examples: Boeing, Chrysler –a concurrent process carried out by a multi- functional product development team. –intended to replace sequential development process. –they avoid potential quality problems by integrating upstream and downstream functions in the preliminary design phase.

53. CMR IT- JESSY NAIRIV Sem – A & B ‘09 Managing Human Resources & TQM Growing research indicates that TQM has not achieved its objectives due to human resource management (HRM) problems. Failures occur when management falls short in their efforts to adopt a corporate culture fully embracing TQM.

54. CMR IT- JESSY NAIRIV Sem – A & B ‘09 What makes TQM an HR problem? TQM requires employee development & employee cooperation. Thus, the task of top management is to: –provide workers with the necessary skills and knowledge. –create a quality-minded culture among employees. A quality culture that: –nurtures high-trust relationships. –has a shared sense of commitment. –believes that continuous improvement is for the common good.

55. CMR IT- JESSY NAIRIV Sem – A & B ‘09 Establishing a quality minded culture Formation of a quality minded culture is a human interaction issue. Therefore, quality management systems must provide: –channels of communication for product-quality information among all concerned employees. –means of participation for employees so employees feel they’re part of the system

56. CMR IT- JESSY NAIRIV Sem – A & B ‘09 Some HR challenges? Is company culture a subset of national culture? Should companies encourage TQM participation via monetary incentives? Do workers want to be involved in the quality management process - –Actually, some want to have input. –many others do not want any increased responsibility.

57. CMR IT- JESSY NAIRIV Sem – A & B ‘09 Organizing for quality ISO 9000/QS 9000 Continuous improvement Six sigma - DMAIC TQM – PDSA ( Plan, Do, Study, Act) Quality circles

58. CMR IT- JESSY NAIRIV Sem – A & B ‘09 KEY ISSUES Communication Cross functional Cooperation Team Work Mutual understanding and trust Customer focus Policies and Procedures (Control) Empowerment Accountability

59. CMR IT- JESSY NAIRIV Sem – A & B ‘09 Continuous Improvement Continuous improvement of processes, people, and product

60. CMR IT- JESSY NAIRIV Sem – A & B ‘09 THE ROAD TO QUALITY MANAGEMENT QC Inspection QA Strategies for Effective QC QM Changing Work Habits to do the Right things Right the First time, Everytime

61. CMR IT- JESSY NAIRIV Sem – A & B ‘09 Principles of TQM The Principles of TQM are as follows: 1.Quality can and must be managed. 2.Everyone has a customer and is a supplier. 3.Processes, not people are the problem. 4.Every employee is responsible for quality. 5.Problems must be prevented, not just fixed. 6.Quality must be measured. 7.Quality improvements must be continuous. 8.The quality standard is defect free. 9.Goals are based on requirements, not negotiated. 10.Life cycle costs, not front end costs. 11.Management must be involved and lead. 12.Plan and organize for quality improvement