Chapter #01

TOTAL QUALITY MANAGEMENT

Quality is excellence that is better than a minimum standard. It is conformance to standards and fitness of purpose ISO 9000:2000 definition of quality - It is the degree to which a set of inherent characteristics fulfills requirements. Quality is a customer determination based on the customers actual experience with the product or service, measured against his or her requirements - stated or unstated, conscious or merely sensed, technically operational or entirely subjective - and always representing a moving target in a competitive market

Definition of cost of Quality

Its a term thats widely used and widely misunderstood. The cost of quality isnt the price of creating a quality product or service. Its the cost of NOT creating a quality product or service. Every time work is redone, the cost of quality increases. Obvious examples include: The reworking of a manufactured item. The retesting of an assembly The rebuilding of a tool The correction of a bank statement

The reworking of a service, such as the reprocessing of a loan operation or the replacement of a food order in a restaurant Prevention cost: Prevention costs are the costs associated with preventing poor quality, such as training, designing a quality product that is easy to manufacture and planning costs. Appraisal Cost: Appraisal costs are the costs of determining the level of quality and finding defects. These costs include inspections, product testing and quality audits. Internal Failure Cost: Internal failure costs are the costs associated with finding and dealing with quality problems discovered before the product or service reaches the customer. Some examples of internal failure costs are rework, scrap and machine

downtime due to quality problems External Failure cost: External failure costs are the costs of poor quality discovered by the customer. Some examples of external failure costs are product returns, lawsuits and repairs.

Basic approach:
It is a way to approach the things, there are six approaches: 1- A committed and involved management to provide long term top to bottom organizational support 2- An unwavering focus on the customer both internally and externally 3- Effective involvement and utilization of entire workforce 4- Continuous improvement of the business and production process 5- Treating supplier as partner 6- Establish performance measures for the processes

Quality and customer expectations: Quality is also defined as excellence in the product or service that fulfills or exceeds the expectations of the customer. There are 9 dimensions of quality that may be found in products that produce customer-satisfaction. Though quality is an abstract perception, it has a quantitative measure- Q= (P / E ) , where Q=quality, P= performance (as measured by the Mfgr.), and E = expectations( of the customer) Quality is not fine-tuning your product at the final stage of manufacturing, before packaging and shipping. Quality is in-built into the product at every stage from conceiving specification & design stages to prototyping testing and manufacturing stages. TQM philosophy and guiding principles continuously improve the Organization processes and result in customer satisfaction. Quality statements Vision statement a short declaration of what the organization hopes to be tomorrow.

Mission statement a statement of purpose who we are, who are our customers, what we do, and how we do it. Quality policy is a guide for everyone in the organization, how they should provide products and services to the customers.

The 9 Dimensions of Quality

1. Performance 2. Features 3. Conformance 4. Reliability
5. Durability

6. Service 7. Response- of Dealer/ Mfgr. to Customer 8. Aesthetics of product 9. Reputation- of Mfgr./Dealer

BENEFITS OF QUALITY
Improvement of quality: TQM promotes quality awareness and participation of all members of the
organization, not just the QA or QC department. It means quality at the source.

Employee participation: The focus on quality leads employee to a proactive work culture aimed
at preventing mistakes rather than correcting mistakes.

Teamwork (Better morale of work force) workers motivated by extra

responsibility, team work and involvement in decisions of TQM

Higher Customer satisfaction: A major long-term benefit of Total Quality

Management relates to customer satisfaction. TQM aims at improving quality, and identifies the best measure of quality as matching customer expectations in terms of service, product, and experience

Employee satisfaction: Among the major benefits of Total Quality Management is

improvement in Organizational Development , TQM heralds a change in the work culture by educating all employees on quality and making quality the concern of everybody and they get rewards by employer

Production increase : its fiscal discipline through elimination of unnecessary steps

and wasteful expenditure which results increase production , extend the range of products , improve existing products

Reliable products/services : faults and problems are spotted and sorted quicker (zero
defects)

More productivity & profit: process efficiency leading to improved profit per product or
service

Less wastage costs

Decrease waste as fewer defective products and no need for separate

Less Inspection costs :elimination of waste costs and reject products Improved process : elimination of repairs and reworks, also reduced warranty and customer
support costs

Disadvantages of Total Quality Management:

1. 2. 3. Initial introduction costs- training workers and disrupting current production whilst being implemented Benefits may not be seen for several years Workers may be resistant to change may feel less secure in jobs

OBSTACLES OF TQM
Lack of a company-wide definition of quality. Lack of a formalized strategic plan for change. Lack of a customer focus. Poor inter-organizational communication. Lack of real employee empowerment. Lack of employee trust in senior management. View of the quality program as a quick fix. Drive for short-term financial results. Politics and turf issues.

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Chapter # 02

ROLE OF TQM LEADERS

All are responsible for quality improvement especially the senior management & CEOs

Senior management must practice MBWA Ensure that the teams decision is in harmony with the quality statements of the organization Senior TQM leaders must read TQM literature and attend conferences to be aware of TQM tools and methods Senior managers must take part in award and recognition ceremonies for celebrating the quality successes of the organization Coaching others and teaching in TQM seminars Senior managers must liaise with internal, external and suppliers through visits, focus groups, surveys They must live and communicate TQM.

7 HABITS F HIGHLY EFFECTIVE PEOPLE

1- Be pro-active: Proactive people recognize that they are "response-able." They don't blame
genetics, circumstances, conditions, or conditioning for their behavior. They know they choose their behavior. They will take decision which they forecasted and analyze the predetermined goals and targets, which can be calculate by visionary power Reactive people, on the other hand, are often affected by their physical environment. if you are reactive then you will not successful ,while, and there must be alternatives

2- Begin with the end in mind : If you are achieving your goals by visualizing the ending results in
mind is based on imagination the ability to envision in your mind what you cannot at present see with your eyes. It is based on the principle that all things are created twice. There is a mental (first) creation, and a physical (second) creation, one of the best ways to incorporate Habit 2 into your life is to develop a Personal Mission Statement. It focuses on what you want to be and do. It is your plan for success.

3- Put first things first : if you think and evaluate the work which are important, but which
are important and urgent you must do these first
E,g Urgent Not Urgent Important

Important

II

Not impt.

III

IV

4- Think win-win : Think Win-Win isn't about being nice, nor is it a quick-fix technique. It is
a character-based code for human interaction and collaboration. you planning projects
appraisals or efforts must lead you to win or successful, diversify your decisions,

5- Seek first to understand, then to be understood: Communication is the most important

skill in life. You spend years learning how to read and write, and years learning how to

speak. But what about listening? What training have you had that enables you to listen so you really, deeply understand another human being? Probably none, right? If you're like most people, you probably seek first to be understood; you want to get your point across.

6- Synergy: To put it simply, synergy means "two heads are better than one." Synergize is
the habit of creative cooperation. It is teamwork, open-mindedness, and the adventure of finding new solutions to old problems. But it doesn't just happen on its own. It's a process, and through that process, people bring all their personal experience and expertise to the table. Together, they can produce far better results that they could individually

7- Sharpen the saw: Sharpen the Saw means preserving and enhancing the greatest asset
you have--you. It means having a balanced program for self-renewal in the four areas of your life: physical, social/emotional, mental, and spiritual. Here are some examples of activities:

Physical: Social/Emotional: Mental: Spiritual:

Beneficial eating, exercising, and resting Making social and meaningful connections with others Learning, reading, writing, and teaching Spending time in nature, expanding spiritual self through meditation, music, art, prayer, or service

DENIM PHILOSOPHY
1.

Create and publish the aims and purposes of the organization: According to Deming, It is easy to

stay bound up in the tangled knots of the problems of today, becoming ever more and more efficient in the future, but no company without a plan for the future will stay in business. A constancy of purpose requires: innovation, e.g., long-term planning for it, investment in research and education, and continuous improvement of products and service. To apply this point, an information technology quality assurance organization can: e.g, Investor , customer , employee , supplier, etc
2.

Learn the new philosophy: Quality must become the new religion. According to Deming, The cost of

living depends inversely on the goods and services that a given amount of money will buy, e.g., reliable service reduces costs. Delays and mistakes raise costs. Consumers of goods and services end up paying for delays and mistakes, which reduces their standard of living. Tolerance of acceptability levels and defects in systems is the roadblock between quality and productivity
3.

Understand the purpose of inspection: The old way of thinking is to inspect bad quality out. A better

approach is that inspection should be used, like as we take the sample in hypothesis, rather than going through the population which will increase the cost and time,
4.

Stop awarding business based on price alone . Two or more suppliers for the same item will multiply

the evils that are necessarily inherent and bad enough with any one supplier. A buyer will serve his

company best by developing a long-term relationship of loyalty and trust with a single vendor. Rather than using standards manuals by which vendors must qualify for business e.g, price must based on quality of a product
5.

Improve constantly and forever the System: Improvement is not a one-time effort management is

obligated to improve quality continuously. Putting out fires is not improvement. Finding a point out of control, Use statistical techniques such as root cause and effect analysis to uncover the sources of problems and test analysis
6.

Institute training: you must train and encourage ,managers workers and quality staff, to constantly

increase their knowledge of quality and testing techniques by attending seminars and classes Reward staff for creating new seminars and special interest groups
7.

Teach & Institute Leadership: top hierarchy or top managers uses (+ve) approach to motivate the

workers who usually do mistakes ,There is no excuse to offer for putting people on a job that they know not how to do. Most so-called goofing off somebody seems to be lazy, doesnt seem to care that person is almost always in the wrong job, or has very poor management
8.

Drive out Fear, create trust and create a climate for innovation : There is often no incentive for

problem solving. Suggesting new ideas is too risky. People are afraid of losing their raises, promotions, or jobs. Fear takes a horrible toll. Fear is all around e.g, mineral water, biscuits, shampoo manufacturers small packing (sashes) for consumer benefits, and increase the sale of that product
9.

Optimize the efforts of teams, groups, and staff areas: Management must optimize the efforts of

teams, workgroups and staff areas to achieve the aims and purposes of the organization. Barriers exist internally among levels of management, among departments. Within departments,
10. Eliminate exhortations for the work force:

Exhortation that ask for increased productivity without providing improvement methods can handicap an organizations, they do nothing but express managements desires
quotas for the work force: Instead of quotas, management must learn and institute methods for improvement. Quotas and work standards focus on quantity rather than quality

11. Eliminate numerical

12. Eliminate management by objectives :

Instead of management by objective, management must learn the capabilities of the processes and how to improve them, internal goals set by management without a method are a burlesque management by numerical goals is an attempt to manage without knowledge of what to do workers do not know how to relate to the organizations mission, they are being blamed for system problems, poor designs lead to the production of Junk, inadequate training is provided, punitive supervision exist and inadequate or ineffective equipment is provided for performing the required work. what an organization need is people who are improving with education. A long term commitment to continuously train and educate people must be made by management

13. Remove barriers to pride of workmanship :

14. Encourage education and self-improvement for all:

15. Take action to accomplish the transformation:

Top management has the primary responsibility for the never ending improvement of the processes. Every employee, including managers, should acquire a precise idea of how to improve quality continually, but the initiative must come from top management.

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Chapter 03:

TDP Co-ordinary Perfect Competition

TDP : (Telecommunication product division)

Vision Mission Established strategy

Review strategy initiatives and critical success factor

Review TPD Value and Establish key result indicator

Develop short & long term plans

Deploy the plans

Review measures

SEVEN STEPS OF STRATEGIC PLANNING

The process starts with the principles that quality and customer satisfaction are the center of an organizations future. It brings together all the key stakeholders. The strategic planning can be performed by any organization. It can be highly effective, allowing the organizations to do the right thing at the right time, every time.

There are seven steps to strategic Quality Planning:

1. 2. 3. 4. 5. 6. 7. Discover customer needs Predict the future Customer positioning Gap analysis Closing the gap Alignment Implementation Customer Needs: The first step is to discover the future needs of the customers. To achieve the purpose of advertisement by targeting the customer psychologically.

I. II.

Predict the future: Next planners must look into their crystal balls to predict the future conditions that will affect their product or service. Demographics, economics forecasts, and technical assessments or projections are tools that help predict the future.

III.

Customer Positioning: Next, the planners determine where organization wants to be in relation to the customers. Do they want to retain, reduce, or expand the customer base. Product or services with poor quality performance should be targeted for breakthrough or eliminated. The organizations needs to concentrate its efforts on areas of excellence.

IV.

Gap Analysis: This step requires the planner to identify the gaps between the current state and the future state of the organization. An analysis of the core values and concepts is an excellent technique for pinpointing gaps.

V. VI. VII.

Closing the Gap: The plan has to be developed then we have to make stake Holders confidence declining he Gaps by establishing goals and responsibilities and achieve forecasted figures. Alignment: As the plan is developed, it must be aligned with the mission, vision, and other core values and concepts of the organization. Without this alignment, the plan will have little chance of success. Implementation: This last step is frequently the most difficult.
iResource Allocation

Resources must be allocated to collecting data, designing changes, and overcoming resistance to change. Also part of this step is the monitoring activity to ensure that progress is being made. The planning group should meet at least once a year to assess progress and take any corrective action.

Customer satisfaction with organizational diagram

TQM and Customer Satisfaction A major long-term benefit of Total Quality Management relates to customer satisfaction. TQM aims at improving quality, and identifies the best measure of quality as matching customer expectations in terms of service, product, and experience. TQM interventions quantify problems and aim to achieve the best state defined in terms of such customer expectations. Some examples of the application of Total Quality Management to improve customer satisfaction include: Reduction of waiting time by changing the method of appointment scheduling or client handling Making changes to the delivery process so that the product reaches the customer faster Better quality products requiring no repairs improving customer loyalty Customer is the Boss or King Customer dictates the market trends and direction Customer not only has needs to be supplied (basic performance functions) Also he wants what he wants!(Additional features satisfy him and influence his purchase decision) Hence the Suppliers and Manufacturers have to closely follow at the heel of the customer.

Customer Satisfaction Organizational Diagram

Customer________________ Front line Representatives__ Operational Area___

Senior managers CEO Customer (Dr) FLR (Medical Rap) Operational Area (Territory and presented by manager) Senior Manager Chief Executive Officer

Customer:
Internal customer: internal customer involved in selling in your organization and present in the organization, Every person in a process is a customer of the previous operation. ( applies to design ,manufacturing, sales, supplies etc External customer: current, prospective and lost customers Shampoo --- Diversification, Skin ----- Oily , normal, dry Prospectus -- Up coming new

2- What do you need from me? 3- What do you do with my output?

4- Are then any gap between what you need and what you get? If you cant answer all of these questions properly consumer will increase Dealing purchase power of Pepsi this is scenario development.

Customer perception about quality

One of the basic concept of TQM philosophy is continuous process improvement According to Deming, Quality may be defined as an excellent product or services that fulfills or Exceeds our expectations. An American Society for Quality (ASQ) survey on end user perceptions of Important factors that influenced purchases showed the following ranking: 1. Performance 2. Features 3. Service 4. Warranty 5. Price 6. Reputation The above factors are the part of product and service quality; therefore it is evident that product quality and service are more important than price. 1- Performance: Need, Availability, reliability, maintainability If any product fulfill your need and its reliable as well as the quality is maintain of that product thats y you purchase this product, China products: are cheap in Price & contains motivational factor but you compromised /scarify with the quality 2- FEATURE: Identifiable features or attributes of a product or service are psychological, time- oriented, contractual, ethical, and technological. Features are secondary characteristics of a product or service. E,g: Quality Dimensions etc 3- SERVICE: An emphasis on customer service is emerging as a method for organizations to give customer added value. However is an intangible- it is made up of many small things, all geared to changing the customers perception? Providing excellent customer service is different from and more difficult to achieve than excellent product quality

4- WARRANTY: The product warranty represents an organizations public promise of a quality product backed up by a guarantee of customer satisfaction. Warranty builds marketing muscle as it encourages customer to buy a service by reducing the risk of the purchase decision and it generates more sales fro/m existing customer by enhancing loyalty 5- PRICE: Todays customer is willing to pay a higher price to obtain value. Customer constantly evaluating one organizations products and services against those of its competitors to determine who provides the greatest value. 6- REPUTATION: Today customer satisfaction is based on the entire experience with the organization, not just the product. Good experiences are repeated to six people and bad experiences are repeated to 15 people; therefore it is more difficult to create a favorable reputation. Customers are willing to pay a premium for a known or trusted brand name and often become customers for life.
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Chapter #4

Maslow Hierarchy of Need

Maslow's hierarchy of needs is a theory in psychology, proposed by Abraham Maslow in his 1943 paper "A Theory of Human Motivation." ]Maslow subsequently extended the idea to include his observations of humans' innate curiosity. His theories parallel many other theories of human developmental psychology, all of which focus on describing the stages of growth in humans. Maslow use the terms Physiological, Safety, Belongingness and Love, Esteem, and Self-Actualization needs to describe the pattern that human motivations generally move through

Physiological needs:
Physiological needs are obvious; they are the literal requirements for human survival. If these requirements are not met, the human body simply cannot continue to function. Physiological needs are the most proponents of all the other needs. Therefore, the human that lacks food, love, esteem, or safety would consider the greatest of his/her needs to be food.

Safety needs
With their physical needs relatively satisfied, the individual's safety needs take precedence and dominate behavior. In the absence of physical safety due to war, natural disaster, or, in cases of family violence, childhood abuse, etc Personal security Financial security Health and well-being Safety net against accidents/illness and their adverse impacts

Love and belonging

After physiological and safety needs are fulfilled, the third layer of human needs is interpersonal and involves feelings of belongingness. The need is especially strong in childhood and can over-ride the need for safety as witnessed in children who cling to abusive parents e.g, Friendship Intimacy

Family

Esteem
All humans have a need to be respected and to have self-esteem and self-respect. Esteem presents the normal human desire to be accepted and valued by others. People need to engage themselves to gain recognition and have an activity or activities that give the person a sense of contribution, to feel self-valued, be it in a profession or hobby.

Self-actualization
What a man can be, he must be. This forms the basis of the perceived need for selfactualization. This level of need pertains to what a person's full potential is and realizing that potential. Maslow describes this desire as the desire to become more and more what one is, to become everything that one is capable of becoming

Achieving a motivation workforce

Achieving a motivated workforce 1. Know thyself 2. Know your employees 3. Establisha+veattitude 4. Share goals 5. Monitor progress 6. Develop interesting work 7. Communicate effectively 8. Celebrate success
Hiring people who are motivated to do what employers need remains one of the biggest challenges in business today. Often, employers think that the best motivators for employees are reasonably good pay or good fringe benefits. Some employers think that employees are motivated by perks such as bonuses, parties, gifts or outings. Dr. Frederick Herzberg discovered through research that such things do not motivate employees. They merely prevent workers from becoming unhappy. Current research continues to validate his findings. What motivates people, Dr. Herzberg found, is the work itself. When the work is meaningful, it provides opportunities for learning, recognition and responsibility. That is when employees will be motivated to make full use of their abilities. This is a somewhat radical idea for employers who think its all about money.The truth is, according to Dr. Herzberg, that both Meaningful work and adequate money and benefit sare necessary. Provide both, he said, and you can get a person to do what you need to have done. Actually, its a bit more complicated than that. Dr. Herzberg recognized that an employer could not take any applicant and get them to do any job in the Company. His PSP research showed that peoples aptitudes, interests and personalities also have great Impact on vocational success. He concluded that motivation occurs when an individuals personal qualities match the rewards available on the job

HOW TO SELECT MOTIVATED TEAM

One way to assess motivation is to take an inventory of what an individual already has achieved. People who are internally motivated usually have an established track record of results. Depending on age and experience, these results could be in the workplace, in school, in competitive events, or in other activities that demonstrate continuous improvement. Motivated people have a history of mastery. Another way to identify motivated people is with psychological tests. Industrial psychologists are able to assess a variety of internal drivers, including such things as work energy, results orientation, desire for continuous improvement, need for recognition, competitiveness, desire for responsibility, ambition for advancement and desire for intellectual stimulation. In the hands of well-trained professionals, validated and reliable psychological tests can identify job applicants who are motivated by the kind of rewards a particular employer has to offer. Assuming the individual has the necessary skills and aptitudes, matching a persons desired rewards with the incentives available for a particular job is the best way to hire a motivated and highly productive employee.

Types of teams
Teams are groups of two or more people who interact and influence each other, are mutually accountable for achieving common objectives and perceive themselves as social entity within an organization. All teams exist to fulfill some purposes, such as assembling a product, providing a service, operating a submarine or making an important decision. Team members are held together by their interdependence and need for collaboration to achieve a common goal. The development of teams and teamwork has grown dramatically in all types of organizations for one simple reason: No one person has the ability to deliver the kinds of products and services required in today's highly competitive marketplace. Organizations must depend on the cooperative nature of many teams to create successful ventures and outcomes. Quality improvement teams or excellence teams Problem solving teams (PSTS) Natural work teams (NWTS) Functional teams Cross-functional teams Self-directed work teams

QUALITY IMPROVEMENT TEAMS OR EXCELLENCE TEAMS (QITS): These are temporary teams with the purpose of dealing with specific problems that often re-occur. These teams are set up for period of three to twelve months.

PROBLEM SOLVING TEAMS (PSTS) : These are temporary teams to solve certain problems and also to identify and overcome causes of problems. They generally last from one week to three months.

NATURAL WORK TEAMS (NWTS) : These teams consist of small groups of skilled workers who share tasks and responsibilities. These teams use concepts such as employee

involvement teams, self-managing teams and quality circles. These teams generally work for one to two hours a week. FUNCTIONAL TEAMS perform specific organizational functions and include members from several vertical levels of the hierarchy. In other words, a functional team is composed of a manager and his or her subordinates for a particular functional area. Accounting, personnel, and purchasing departments are examples of functional teams. CROSS-FUNCTIONAL TEAMS are made up of experts in various specialties (or functions) working together on various organizational tasks. Team members come from such departments as research and development, design, engineering, marketing, and distribution. These teams are often empowered to make decisions without the approval of management SELF-DIRECTED WORK TEAMS, or self-managed teams, operate without managers and are responsible for complete work processes or segments that deliver products or services to external or internal customers. Self-directed work teams (SDWTs) are designed to give employees a feeling of ownership of a whole job

CHARACTERISTICS OF SUCCESSFUL TEAM

1- Sponsor: 2- Team charter: 3- Team composition; 4- Training: 5- Ground rules: 6- Clear Objective: 7- Accountability: 8- Well define decision : (Sequence and serial) 9- Resources : (accurate and relevant) 10- Trust :( 100% trust on all team members) 11- Effective problem solving: 12- Balance participation :( all the members should be active) 13- Cohesiveness:

What are the needs of a team?

Each member of the team has special abilities that can be used to solve problems. Many processes are so complex that one person cannot be knowledgeable concerning the entire

process. Second produces results that exceed the contributions of each member. Third team members develop a relationship with each other that allows them to do a better job. Finally teams provide the vehicle for improved communication, thereby increasing the likelihood of successful solution. 1.Teams are created when the performance demanded is challenging. The hunger for performance is the basic motivator. 2. A disciplined outlook is necessary. Basics include size, purpose, goals, skills, approach and accountability for successful application.

DECISION MAKING METHODS

Benefits of employee involvement

1. Make better decisions using expert knowledge of process 2. More likely to implement and support decisions they had a part in making /better able to accept changes 3. Better able to spot pin point areas for improvement 4. Better able to take immediate corrective action 5. EIincreases morale, improves industrial relations and increases commitment to unit goals

COMMON BARRIERS TO TEAM PROGRESS

(i) Lack of management support.
(ii) Trapped in group thing. (iii) No clear measures of success Insufficient trainingTeams cannot be expected to perform unless they are trained in problem-solving techniques, group dynamics, and communication skills. Incompatible rewards and compensation-In general, organizations make little effort to reward team performance. Because of a strong focus on individual rewards it is difficult for individuals of buy into the team concept. Similarly, performance appraisals do not accept input from peers or team members. First-line supervisor resistanceSupervisors are reluctant to give up power, confident that they can do the work better and faster, are concerned about job security, and are ultimately held responsible. Lack of planningA lack of common direction or alignment on the use of collaborative efforts, internal competition, redundancy, and fragmented work processes all prevent team progress.

 Lack of management support-Management must provide the resources and buy into the quality council/sponsor system. Access to information systemsTeams need access to organizational information such as business performance competitive performance, financial data, and so forth. Lack of union support-Organizations need union support for the team to be successful. Project scope too largeThe team and organization are not clear on what is reasonable, or management is abdicating its responsibility to guide the team. Project objectives are not significantManagement has not defined what role the team will play in the organization. No clear measures of successThe team is not clear about its charter and goals.

No time to do improvement work-Values and beliefs of the organization are not compatible with the teams work. Individual departmental politics interfere with the teams progress. Management has not given the team proper resources. Team is too large-The organization lacks methods for involving people in ways other than team membership. Trapped in groupthink-Team members all have a mind-set that no actions are taken until everyone agrees with every decision.
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Chapter 05

Improvement strategies? What are the types of problems?

Production problem-The problems assorted with the production and inventories are known as production probli1s. These are of three types (i) Zero problems (ii) Decrease problems, (iii) Increase problems. (i) Zero problemsDefects, complaints, missed appointments; incorrect answers are examples of zero problems that require elimination. (ii) Decrease problemsIt involves cost consideration and time of reduction of production costs, reduction of design time and reduction of delivery time are common examples of decrease problems.

(iii) Increase problemsSometimes a quality problem does not involve defects, rejects, complaints, costs or time but these are problems in sales, increasing production etc.

OBSTACLES TO IMPLEMENTING TQM

Lack of a company-wide definition of quality. Lack of a formalized strategic plan for change. Lack of a customer focus. Poor inter-organizational communication. Lack of real employee empowerment. Lack of employee trust in senior management. View of the quality program as a quick fix. Drive for short-term financial results. Politics and turf issues.

Explain Herzbergs two factor theory.

Frederick Herzberg extended the general work of Maslow by using empirical research to develop his theory on employee motivation. He found that people were motivated by recognition responsibility, advancement, and achievement and work it. These factors were labeled motivators. In addition, his research showed that bad feelings were associated with low salary, minimal, fringe benefits, poor working conditions, ill defined organization policies and Medicare technical supervision.

Effects of poor Quality

Low customer satisfaction Low productivity, sales & profit Low morale of workforce More re-work, material & labor costs High inspection costs Delay in shipping High repair costs Higher inventory costs Greater waste of material

Define problem solving

A problem is a deviation between what should be happening and what actually is happening. That is important enough to make someone think how the deviation to be corrected. An unanticipated change produces this unwanted effect in place of the desired and expected effect. Before this unknown change occurred, things were going as expected; afterwards they are out of plan and out of control.