TOTAL QUALITY MANAGEMENT UNIT-2

UNIT - 2Leadership: Definition, characteristics of quality leaders, leadership concept, Characteristics of effective people, ethics, the Deming philosophy, role of TQM leaders, implementation, core values, concepts and framework, strategic planning communication, decision making,- 06 Hours

QUESTIONS1. What are the characteristics of quality leaders?[July 2011-10M]/2. Explain the quality statements. ?[July 2011-10M]3. Define three quality statements of an organizations [Jan 2011 -6M] 4. Explain briefly the concepts of quality costs. [Jan 2011 -7M]5. Define strategic planning. Explain briefly the seven steps towards strategic planning. . [Jan 2011 -7M]6. Explain the characteristics of quality leaders.[JAN 2010 -67. What is strategic planning? Enumerate the steps to strategic planning [Jan 2010 -6M] 8. Explain briefly quality costs and economics of quality costs.-Jan 2010-8 Marks. 9. Define leadership. Explain the characteristics of quality leaders. [June 2010-10 Marks] 10. Mention and explain quality statements. [June 2010-10Marks] 11. Explain the 7 habits of highly effective people. [8 Marks] 12. Define ethics. Explain the root causes of unethical behavior. [8 Marks] 13. Explain 14 points of Demings philosophy. [10 Marks] 14. Explain the role of TQM leaders in implementing TQM.

Definition of leaders: According to James Macgregor Burns, a leader is one who instills purposes, not one who controls by brute force. A leader strengthens and inspires the followers to accomplish shared goals Leader shapes the organizations values, protects the organizations values and exemplifies the organization's values. Ultimately Burns says, Leaders and followers raise one another to higher levels of motivation and morality leadership becomes moral in that it raises the human conduct and ethical aspiration of both the leader and the led, and thus has a transforming effect on both. Leadership is we, not me; mission, not my show; vision, not division; and community, not domicile. Definition of leader by N R Narayanmurthy, Chief Mentor, Infosys A great leader is one who is not only good in creating vision, creating the big picture, but also ensuring that he goes in to the nitty-gritty, into the details of making sure that his vision is actually translated into reality through excellence of execution. In other words, great leaders have great vision, great imagination, great ideas but they also implement these ideas through hard work, commitment and flawless execution. In doing so they motivate thousands of people CHARACTERTISTICS OF QUALITY LEADERS:1. They give priority attention to external & internal customers and their needs. Leaders place themselves in the customers shoes and service their needs from that perspective. They continually evaluate the customers changing requirements.2. They empower, rather than control, subordinates. Leaders have trust and confidence in the performance of their subordinates. They should provide resources, training, and work environment to help subordinates do their jobs. However, the decision to accept responsibility lies with the individual 3. They emphasize improvement rather than maintenance. Leaders use the Phrase If it is not perfect, improve it rather than if it isn't broke, dont fix it.There is always room for improvement, even if the improvement is small. Major breakthrough sometimes happen, but its the little ones that keep the continuous process improvement on a positive track.4. They emphasize prevention. An ounce of prevention is worth a pound of cure is certainly true. It is also true that perfection can be enemy of creativity. We cant always wait until we have created the perfect process or product .There must be a balance between preventing problems and developing better, but not perfect, processes.5. They encourage collaboration rather than competition. When functional areas, departments, or work groups are in competition, they may find subtle ways of working against each other or withholding information. instead, there must be collaboration among and within units.6. They train and coach, rather than direct and supervise. Leaders know that the development of the human resource is a necessity. As coaches, they help their subordinates learn to do a better job.7. They learn from problems. When problem exists, it is treated as an opportunity rather than something to be minimized or covered up. What cause it? And How can we prevent it in the future? are the questions quality leaders ask.8. They continually try to improve communications. Leaders continually disseminate information about the TQM effort. They make it evident that TQM is not just a slogan. Communication is two way- ideas will be generated by people when leaders encourage them and act upon them. For example, on the ve Desert Storm, General Colin Powell solicited enlisted men and women for advice on winning the war. Communication is the glue that holds a TQM organization together. 9. Leaders continually demonstrate their commitment to quality. Leaders walk their talk their actions rather their words, communicate their level of commitment. They let the quality statements for their decision- making guide10. Leaders choose suppliers on the basis of quality, not price. Suppliers are encouraged to participate on project teams and become involved. Leaders know that quality begins with quality materials and the true measure is life cycle cost.11. They establish organizational systems to support the quality effort. At the senior management level a quality council is provided, and the first- line supervisor level, work groups and project teams are organized to improve the process.12. Leaders encourage and recognize team effort. They encourage, provide, and reward individuals and teams. Leaders know that people like to know that their contributions are appreciated and important. This action is one of the leaders most powerful tools. Characteristics needed by quality leaders Vision Passion(Enthusiasm)-he projects, what inspires others The leaders love what he does and loves doing it. Integrity-Self knowledge, candour, maturity Curiosity, wants to learn as much as he can During, the leader takes risks Generosity Communicating and DelegatingLeadership concepts.In order to become successful, leadership requires an intuitive understanding of human nature-the basic needs, wants, and abilities of people. To be effective, a leader understands that:1. People, paradoxically, need security and independence at the same time.2. People are sensitive to external rewards and punishments and yet are also strongly self-motivated.3. People like to hear a kind word 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.5. People trust their gut reaction more than statistical data6. People distrust a leaders rhetoric if the words are inconsistent with the leaders actionLeader needs to give their employees independence and yet provide a secure working environment-one that encourages and rewards success. A working environment must be provided that fosters employee creativity and risk-taking by not penalizing mistakesTHE SEVEN .HABITS OF HIGHLY EFFECTIVE PEOPLE

[Stephen R Covey] Be pro-active Begin with the end in mind Put first things first (ref.Coveys Time management matrix pg.35) Think win-win Seek first to understand, then to be understood Synergy Sharpen the sawETHICS:Ethics is a body of principles or standards of human conduct that govern the behavior of individuals and organizations.The Root Causes of Unethical behaviorMuch of the unethical behavior in organizations occurs when1. Organizations favor their own interests above the well being of their customers, employees or the public2. Organizations reward behavior that violates ethical standards, such as increasing Sales through false advertising3. Organizations encourage separate standards of behavior at work than at home, such as secrecy and deceit versus honesty4. 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 stakeholders 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 corners6. Organizations and individuals overemphasize the short-term results at the expense of themselves and others in the long run; for example behavior is good based on the degree of utility, pleasure, or good received. Regardless of effect on other7. 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.ETHICS MANAGEMENT PROGRAMEthics management program needs to address pressure, opportunity and attitude. Managing ethical behavior requires commitment, new policies and procedures, continuous improvement and investments in appraisal, prevention and promotion.There are three steps in an ethical management system1. Appraisal-Analysis of the costs associated with unethical behavior.2. Prevention-Development of system that will minimize costs3. Promotion- which is the continuous advertising of ethical behavior in order to develop an ethical organizational culture that is clear,positive and effective

1. Appraisal: It is the Analysis of the costs associated with unethical behavior. These costs can be divided into the three root causes of pressure, opportunity and attitude. Costs from pressure are those costs from well intended but unethical decisions made under pressure. They include but are not limited to errors, waste, rework, lost customer and warranties. Costs from opportunity are those costs from intentional wrong doing. They include but are not limited to theft, overstated expenses, excessive compensation and nepotism. Costs from attitudes are those costs from mistaken beliefs in unethical forms of behavior. They include but are not limited to errors, waste, rework, lost customer and healthcare.2. PEVENTION: It is the development of a system that will minimize costs. Pressure can be addressed by being involved in the development of goals and values and developing policies that allow for individual diversity, dissent and decision making input. Opportunity can be addressed by developing policies that encourage and protect whistleblowers and require the existence of ombudsmen who can work confidentially with people to solve ethical problems internally Attitude can be addressed by requiring ethics training for all personnel, recognizing ethical conduct in the workplace, requiring performance appraisals to include ethics, and encouraging open discussions concerning ethical behavior issues.3. PROMOTION: This is the continuous advertising of ethical behavior in order to develop an ethical organizational culture that is clear, positive and effective. To be clear the philosophy need to be written, with input from all personnel, and posted. Standardised ethics training should be given everyone to 1) teach them how to clarify ethical issues 2)encourage them to get the facts before acting 3) encourage them to consider all the consequences before acting 4)show them how to test their actions in advance. To be positive, the culture should be about doing what is right, encouraging principled organizational dissent and rewarding ethical behavior. To be effective, the philosophy must be set and adopted by senior management, with input from all personnel. Senior management should act as they would want others to act and make no exceptions.

The Deming Philosophy Create and publish the aims and purposes of the organization Learn the new philosophy Understand the purpose of inspection Stop awarding business based on price alone. Improve constantly and forever the System Institute training Teach and institute leadership Drive out fear, create trust, and create a climate for innovation Optimize the efforts of teams, groups, and staff areas Eliminate exhortations for the work force Eliminate numerical quotas for the work force Eliminate management by objectives Remove barriers to pride of workmanship Encourage education and self-improvement for all Take action to accomplish the transformationRole of TQM leaders All are responsible for quality improvement especially the senior management & CEOs Senior management must practice MBWA[Management by Wandering Around] 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.TQM implementation: Begins with Sr. Managers and CEOs Timing of the implementation process Formation of Quality council Union leaders must be involved with TQM plans implementation Everyone in the organization needs to be trained in quality awareness and problem solving Quality council decides QIP projects.Quality Council: The quality council includes CEO and senior managers of the functional areas -research, manufacturing, finance, sales, marketing etc. and one co-ordinator and a union representative.Duties- of quality council are To develop the Quality statements eg. Vision, Mission, Quality policy statements, Core values etc. To develop strategic long-term plans and annual quality improvement programme. Make a quality training programme Monitor the costs of poor quality. Determine the performance measures for the organization Always find projects that improve the processes and produce customer satisfaction. Establish work-group teams and measure their progress. Establish and review the recognition and reward system for the TQM system

Core values, concepts and framework What do you understand by the term quality statements? Elaborate them with examples. Quality statements are part of strategic planning process and once developed, are occasionally reviewed and updated. There are three types of quality statements: 1.Visionstatement2.Missionstatement3. Quality policy statement The utilization of these statements varies from organization to organization. Small organization may use only the quality policy statementVision Statement The vision statement is a short declaration what an organization aspires to be tomorrow. A vision statement, on the other hand, describes how the future will look if the organization achieves its mission. Successful visions are timeless, inspirational, and become deeply shared within the organization, such as: IBMs Service Apples Computing for the masses Disney theme parks the happiest place on the earth, and Polaroids instant photographyAn example of vision statement To be world- class enterprise in professional electronics BEL L&T shall be professionally managed Indian multinational, committed to total customer satisfaction and enhancing shareholders value. L&T is innovative, entrepreneurial and empowered team constantly creating value and attaining global benchmarks. L&T shall foster culture of caring, trust and continuous learning while meeting expectations of employees, stakeholders and society.---------------------------LARSEN & TOUBRO Mission Statement: A mission statement concerns what an organization is all about. The statement answers the questions such as: who we are, who are our customers, what do we do and how do we do it. This statement is usually one paragraph or less in length, easy to understand, and describes the function of the organization. It provides clear statement of purpose for employees, customers, and suppliers.An example of 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 return on to our shareholders, the owners of our business.An example of simpler mission statement Our mission is to help our customers achieve their business goals through excellence in global product realisation. We will enable this through solutions based on innovative technologies, efficient processes and world class competencies in our people----Geometric software Quality Policy Statement The quality policy is a guide for everyone in the organization as to how they should provide products and services to the customers. It should be written by the CEO with feedback from the workforce and be approved by the quality council. A quality policy is a requirement of ISO 9000.A simple quality policy is: Xerox 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.Quality Policy Statement of Tata Motors Tata Motors is committed to maximizing customer satisfaction and strives to achieve the goal of excellence, by continual improvement, through ongoing design and development, manufacture and sale of reliable,safe,cost- effective, quality products and services of international standards, using environmentally sustainable technologies, for improving levels of efficiency productivity within its plants and ancillaries. Tata Motors also has commitment towards improving the quality-----RATAN N TATA,CHAIRAMAN In summary, the quality statements consist of the core values and concepts, the vision statement, the mission statement, and the quality policy statement. The core values and concepts should be condensed considerably for simplicity and publication An example of a statement that includes vision, mission, quality policy, and core value is Geon has a clear corporate vision..To be the benchmark company in the polymer industry through superior performance, demonstrated by: Living up to its established principles of excellence in environmental protection, health and safety Fully satisfying the expectations of its customers Developing and commercializing innovative polymers technology Utilizing all resources productively Continually improving processes and products Generating sustained value for customers,employees,suppliers and investors Creating an environment of Trust ,Respect, Openness and Integrity------------------------------------------------------THE GEON COMPANY STRATEGIC PLANNINGWhat is Strategic Planning? Process to establish priorities on what you will accomplish in the future Forces you to make choices on what you will do and what you will not do Pulls the entire organization together around a single game plan for execution Broad outline on where resources will get allocated A process that charts out an institutions broad direction forward. It helps an institution to decide what to achieve and actions to be undertaken in the future. A collective and participatory process, involving senior management, employees, and other stakeholders. It looks at the big picture from a longer-term perspective. It clarifies Institutional priorities. It provides an opportunity to address fundamental questions, to focus away from day to day operations, and take initiatives to improve performance. Definition of Strategy/Strategic A careful plan or method The art of devising or employing plans or stratagems toward a goal Of great importance within an integrated whole or to a planned effect Necessary to or important in the initiation, conduct, or completion of a strategic plan What Strategic Planning is Not Strategic planning is not forecasting Strategic planning is not the simple application of quantitative techniques to business planning. Strategic planning is concerned with making decisions today that will affect the organization (product line) and its future. Strategic planning does not eliminate risk, it helps managers access the risks they must take by gaining a better understanding of the parameters involved in their decisions.Benefits of Strategic Planning Defines mission, vision & values Establishes realistic goals, objectives & strategies Ensures effective use of resources Provides base to measure progress Develops consensus on future direction Builds strong teams Solves major problems Why do Strategic Planning? If you fail to plan, then you plan to fail be proactive about the future Strategic planning improves performance Counter excessive inward and short-term thinking Solve major issues at a macro level Communicate to everyone what is most importantReasons for Strategic PlanningChange, Renewal, Funding requirement, Financial forecasting, Mandate , Build consensus, Improve staff and board relations, Develop ownership, Build community support, Other (discussion)SEVEN STEPS TO STRATEGIC PLANNING There are seven basic steps to strategic planning. The process starts with the principle that quality and customer satisfaction are the center of an organizations future. It brings together all the key stake holders.1. CUSTOMER NEEDS: The first step to discover the future customers. Who will they be? Will your customer base change? What will they want? How will the organization meet and exceed expectations?2. CUSTOMER POSITIONING: Next the planners determine where the organization wants to be in relation to the customers. Do they want to retain, reduce, or expand the customer base? Products or services with poor quality performances should be targeted for breakthrough or eliminated. The organization needs to concentrate its efforts on areas of excellence.3. PREDICT THE FUTURE: Next the planners must look into their crystal balls to predict future conditions that will affect their product or service.Demographics,economic forecasts, and technical assessments or projections are tools that help predict the future. More than one organizations product or service has become obsolete because it failed to foresee the changing technology. Not e that the rate of change is continually increasing.4. GAP ANALYSIS: This step requires the planners 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 the gaps

5. CLOSING THE GAP: The plan can now be developed to close the gaps between the current state and the future state of the organizational stakeholders should be included in the developmental plan.6. ALLIGNMENT: As the plan is developed, it must be aligned with the mission, vision and core values and concepts of the organization. without this alignment, the plan will have little chance of success.7. IMPLIMENTATION: This last step is frequently the most difficult. Resources must be allocated to collecting data, designing changes and over coming 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 the progress and take any corrective action.Strategic planning can be performed by any organization. It can be highly effective, allowing organizations to do the right thing at the right time, every time.CommunicationAll

PREPARED BY DR.SHANTHAKUMAR G C, PROF & HEAD, DEPARTMENT OF MECHANICAL ENGINEERING, TJIT, BANGALORE-83, AUGUST-2013