2. PeopleCustomersSuppliers 2. Approach

3. Organization wide approach “Employing a consistent organization- wide approach to continual improvement of the organization’s performance.”

4. This requires organizations to take steps in the following areas: I. People II. Customers III. Suppliers

5. PeopleCustomersSuppliers I. People This requires the organizations to take the following steps:- Having motivated & committed employees, Attracting and retaining people and Building right attitudes.

6. PeopleCustomersSuppliers Having motivated and committed employees

7. PeopleCustomersSuppliers Activities helpful in motivating people Define the outcome you want from managers and insist that they find their own way there. This practice encourages creativity and makes people empowered enough to innovate their way to achieving goals.

8. PeopleCustomersSuppliers Identify strengths of the employees and make efforts to develop and use their strengths by assigning suitable jobs to them. The best way to motivate a person is to offer him the job which he / she likes the most. Activities helpful in motivating people

9. PeopleCustomersSuppliers The seniors must genuinely share the joys and sorrows of the individuals. Treat every employee as a distinctive individual. Every individual is a unique bundle of needs, insecurities, ambitions, spirit and genius. This must be translated into specific action in managing every individual’s growth, training, rewards etc. In majority of cases the employees do not leave companies - they leave their seniors and supervisors. Activities helpful in motivating people

10. PeopleCustomersSuppliers To motivate a person to give his best to your organization, demonstrate to him how his best will make the organization a better performer. Their opinions must be considered during the decision making process. Assist employees in translating organization’s mission into personal mission. Activities helpful in motivating people

11. PeopleCustomersSuppliers Get teams to initiate continuous improvement process and recognize their achievements. Only then you will find every one committed to quality. Encourage team based rewards rather than individual rewards. Encourage people to develop healthier relationships with others at the work place instead of only encouraging professional relationships.

12. PeopleCustomersSuppliers Create a work culture that is transparent, open to new ideas and promotes lot of creativity and innovation. Activities helpful in motivating people

13. PeopleCustomersSuppliers It must be remembered that good pay and perks can always be matched and even bettered by your competitors - it is only the great work places that will make significant difference to the quality of the organization. Activities helpful in motivating people

14. PeopleCustomersSuppliers Attracting and retaining people

15. PeopleCustomersSuppliers Attracting and retaining people Continuous improvement requires organizations to attract, manage and nurture talent. This calls for pro-active measures on three fronts.

16. PeopleCustomersSuppliers Attracting and retaining people 1. Organizations will have to create an ambience where talent can bloom. 2. They have to put in place systems that will help unleash the potential of their employees. 3. They have to build a reward and recognition mechanism that provides value for people.

17. PeopleCustomersSuppliers Attracting and retaining people Today’s dynamic market environment will give rise to lot many entrepreneurial opportunities, which will take away talent from even the best organizations. Thus the take home pay cheque will seize to be a major motivator. Exciting opportunities and meaningful work with a sense of fun will be the preferred choice for employees.

18. PeopleCustomersSuppliers Attracting and retaining people Organizations will have to create small entrepreneurial islands, where they can house their best talents to pursue experiments, innovate, develop cutting edge products, dream up new and better ways of doing business and create value in an unrestricted manner.

19. PeopleCustomersSuppliers Building right attitude

20. PeopleCustomersSuppliers While considerable attention has been given to the technical side of quality, there is an increasing need of the importance of the human side to total quality. The human side of quality

21. PeopleCustomersSuppliers The greatest contributions to the process of TQM are made by the people who make the organization. People - who share the vision. Intellectual capital and knowledge are more and more the true assets of any organization.

22. PeopleCustomersSuppliers Quality of human behavior In its original Japanese context, Total Quality refers not only to the quality of management which ultimately produces quality goods and services, but to the quality of human behavior, skills, commitment and the winning instinct necessary to accomplish our business objectives.

23. PeopleCustomersSuppliers This not only makes good business sense, it also reflects a deeper yearning of the human spirit to be of service, to build loving, caring relationships, to affirm our interdependence, and to bring value, beauty, and benefit into the world.

24. PeopleCustomersSuppliers Quality begins with me. If we are to take Total Quality to heart, we too must come to look at our own lives in a more multidimensional, interrelated and holistic manner. Taking the theme of Total Quality personally has the potential to tap us into the flow of life giving forces and ways of living and working that are ultimately most rewarding and productive.

25. PeopleCustomersSuppliers II. Customers This requires organizations to maximize value for their customers.

26. PeopleCustomersSuppliers Maximizing customer value In this fiercely competitive market, today’s breakthrough product or service is tomorrow’s undifferentiated commodity. One absolute certainty about the customer behavior is that our customers will continue to demand more for less.

27. PeopleCustomersSuppliers Customer value... They will have to be given more quality, more service, more choice and most importantly more innovation in times to come. And for getting all this, the customers will continuously want to spend less time getting it, take less risk while buying and would want to pay less for it.

28. PeopleCustomersSuppliers No matter how effectively a company meets the needs of its customers, it must remain constantly alert and responsive to the dynamic competitive environment and continuously changing needs and expectations of the customers. In order to continuously improve, the organization must carry out an effective program for determining the present and future needs of the customer.

29. PeopleCustomersSuppliers Customer expectation determination Customer expectation determination is the first step towards increasing customer satisfaction. This can be through :- Market research Customer surveys Competitive analysis Environmental scan New products / emerging market research

30. PeopleCustomersSuppliers Customer satisfaction Customer satisfaction is determined by the value-to-price ratio Customer Satisfaction = Value the customer gets Price the customer pays

31. PeopleCustomersSuppliers Components of customer value Product Performance Reliability Durability Serviceability Aesthetics Perceived quality

32. PeopleCustomersSuppliers Components of customer value Service Security Reliability Accessibility Timeliness Responsiveness Empathy Assurance

33. PeopleCustomersSuppliers III. Suppliers This requires organizations to build effective supplier quality program.

34. PeopleCustomersSuppliers Objective of supplier quality program Right quality materials Right quantity Right time Right price

35. PeopleCustomersSuppliers Potential quality drivers Develop new materials and equipment which seem likely to reduce costs and improve performance. Develop supply capacity through the identification of additional suppliers. Reduce the number of suppliers and develop a closer working relationship with those few who are expected to provide the most productive link in the organization’s supply chain.

36. PeopleCustomersSuppliers Potential quality drivers Reduce inspection of incoming materials and stress on vendor certification of quality. Allocate business to more than one supplier to preserve competition.

37. PeopleCustomersSuppliers Methods of Supplier Evaluation Evaluation of product samples Past history with the similar product Test results of similar products Third party certification or registration with major customers On-site evaluation assessment

38. PeopleCustomersSuppliers Supplier evaluation - Questionnaires Can the supplier’s plant and machinery produce at the required rate? Are the machines capable of maintaining quality parameters within acceptable limits? Does the supplier have well staffed quality organization and quality control program? Does the supplier use a considerable number of components obtained from trade or from subcontractors? If so how do they control the quality of these components?

39. PeopleCustomersSuppliers Supplier evaluation -Questionnaires What are the supplier’s source of raw materials? Does the supplier maintain adequate reserve stock of raw materials to safeguard itself from interruptions in the supply of materials? How is the supply of raw materials quality inspected for quality? Does the supplier have complete testing facilities for the product in question? If not what alternative arrangement can be made if pre-shipment inspection is to be carried out?

40. PeopleCustomersSuppliers Supplier evaluation -Questionnaires Has the supplier executed an order for the product similar to the one being considered? If so the details of the order should be obtained? What is the financial standing of the supplier? What is the general attitude of the supplier’s management to the quality of its products? Are they confident to comply with the order? Does the supplier have proper quality system in place?