18ME306/18ENG302/18MBA302

TOTAL QUALITY MANAGEMENT

Prepared by Dr.S.Thamizhmanii
 VISION
• VISION
To perpetually generate quality human resource in mechanical engineering who
can contribute constructively to the Technological and socio-economic
development of the nation.
 MISSION
• Mission
M1:Offering quality graduate and post graduate programmes in mechanical
engineering education and to prepare humanist and rational graduates with
scientific temperament for exceling in their professional career or higher studies.

M2:Promoting excellence in teaching and research through collaborative

activities.
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UNIT 2
TQM principles, strategic quality planning – quality statements – quality focus
– customer orientation – customer satisfaction – customer complaints –
customer retention – employee involvement – motivation – employee
empowerment – team and team work – recognition and reward- performance
appraisal – continuous improvement – supplier partnership – partnering –
supplier selection – supplier rating
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Strategic Quality Planning

When an organizations chooses to make quality a major

competitive edge (differentiation), it becomes the central
issue in strategic planning. This is especially reflected in
vision, mission and policy guidelines of an organization.
An essential idea behind strategic quality planning is that
the product is customer value rather than a physical
product or service. This feat cannot be achieved unless an
organization creates a culture of quality and no strategy
and plan can be worthwhile unless it is carefully
implemented.
 Strategic Quality Planning
Vision 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.
MITS VISION STATEMENT:
Become a globally recognized research and academic
institution and thereby contribute to technological and socio-
economic development of the nation.
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Mission
To foster a culture of excellence in research, innovation,
entrepreneurship, rational thinking and civility by
providing necessary resources for generation,
dissemination and utilization of knowledge and in the
process create an ambience for practice-based learning
to the youth for success in their careers.
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•Quality statements are part of strategic planning
process and once developed, are occasionally
reviewed and updated.
There are three types of quality statements:
1. Vision statement
2. Mission statement
3. Quality policy statement.
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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.
MITS QUALITY POLICY: Madanapalle Institute of Technology & Science
is committed to bring out and nurture the talents and skills of youth in the
fields of Engineering and Management to cater to the challenging needs of
society and industry by
• Contributing to the academic standards and overall knowledge
development of the students
• Providing excellent infrastructure and conducive learning environment.
• Enhancing the competence of faculty and promoting R&D Programs
• Collaborating with institutions and industries.
• Ensuring continual improvement of Quality Management System
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Strategic Quality Planning

QUALITY POLICY OF XEROX:
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.
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Strategic Quality Planning

There are seven steps to strategic Quality

Planning:
1. Discover customer needs
2. Customer positioning
3. Predict the future
4. Gap analysis
5. Closing the gap
6. Alignment
7. Implementation
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Strategic Quality Planning

1. Customer Needs: The first step is to discover the future needs
of the customers. Who will they be? Will your customer base
change? What will they want? How will they want? How will
the organization meet and exceed expectations?
2. Customer Positioning: 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 organization’s needs to
concentrate its efforts on areas of excellence.
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Strategic Quality Planning

3. Predict the future: The 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.
4. 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.
5.Closing the Gap: The plan can now be developed to close the
gap by establishing goals and responsibilities. All stakeholders
should be included in the development of the plan.
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Strategic Quality Planning

6. Alignment: 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. Implementation: This last step is frequently the most
difficult. 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.
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CUSTOMER ORIENTATION
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CUSTOMER SATISFACTION
It is a measure of how products and services
supplied by a company meet or
surpass customer expectation. Customer
satisfaction is defined as "the number
of customers, or percentage of total customers,
whose reported experience with a firm, its
products, or its services (ratings) exceeds
specified satisfaction goals."
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CUSTOMER SATISFACTION
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CUSTOMER SATISFACTION
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CUSTOMER SATISFACTION
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CUSTOMER SATISFACTION
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CUSTOMER SATISFACTION
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CUSTOMER SATISFACTION
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CUSTOMER SATISFACTION
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A consumer complaint or customer

complaint is "an expression of
dissatisfaction on a consumer's behalf
to a responsible party“. It can also be
described in a positive sense as a report
from a consumer providing
documentation about a problem with a
product or service.
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Customer complaint
5 ways to handle customer complaints:
01.Listen and understand:
Always listen to your customers. They have
complained for a reason and it is important to
understand why they are complaining. Research
has shown that customers care more about
quality than a fast response – Take time to listen
and understand what their problem is. To
maintain quality from all support personnel, use
a customer service knowledge base
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Customer complaint
2. Apologize:
Don’t be afraid to apologize for a mistake. Many customers are simply
looking for an apology and acknowledgement of their complaint, yet so
many businesses are hesitant to admit when a mistake has been made.
Don’t underestimate the importance of an apology.
• 3. Find a solution: When your customer has a legitimate complaint, it
needs to be solved. Give your customer service team the authority to
handle the majority of customer complaints to avoid passing your
customer onto a series of people and managers. If the issue has been
or can be repeated, make the necessary changes so you do not receive
another complaint.
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4. Follow up with the customer
Follow up with your customers to make sure they are satisfied with the solution.
This can be in the form of a follow up email or survey asking for feedback on
how the complaint was handled. Almost 70% of customers leave a
company because they believe you don’t care about them.
5. Exceed Expectations
You have acknowledged the mistake, fixed the problem and followed up.
Now, it’s your chance to go one step further and exceed customer expectations,
whether this is to send a hand-written thank you note or to give the customer
early access to your new product features. In doing so, the next time your
customer talks about your business, this will be the message they communicate
most!
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Customer Retention
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Customer Retention
• Customer retention refers to the ability of a company or
product to retain its customers over some specified period. High
customer retention means customers of the product or business
tend to return to, continue to buy or in some other way not
defect to another product or business, or to non-use entirely.
• The goal of customer retention programs is to help companies
retain as many customers as possible, often through customer
loyalty and brand loyalty initiatives. It is important to
remember that customer retention begins with the first contact
a customer has with a company and continues throughout the
entire lifetime of the relationship.
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Customer Retention
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Companies that shift their focus to customer retention often
find it to be a more efficient process because they
are marketing to customers who already have expressed an
interest in the products and are engaged with the brand,
making it easier to capitalize on their experiences with the
company. In fact, retention is a more sustainable business
model that is a key to sustainable growth. The proof is in
the numbers: according to studies done by Bain &
Company, increasing customer retention by 5% can lead to
an increase in profits of 25% – 95%, and the likelihood of
converting an existing customer into a repeat customer is
60% – 70%, while the probability of converting a new lead is
5% – 20%, at best.
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Customer Retention Strategies and Techniques

1. Set customer expectations – Set customer expectations early
and a little lower than you can provide to eliminate
uncertainty about the level of your service and ensure you
always deliver on your promises.
2. Become the customers’ trusted advisor – You need to be the
expert in your particular field, so that you can gain
customers’ trust and build customer loyalty.
3. Use relationships to build trust – Build relationships with
customers in a way that fosters trust. Do this through shared
values and fostering customer relationships.
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Customer Retention Strategies and Techniques
04. Take a proactive approach to customer service – Implement
anticipatory service so that you can eliminate problems before
they occur.
05. Use social media to build relationships – Use LinkedIn,
Twitter, and Facebook to connect and communicate with
customers and give them a space for sharing experiences with
your company, so they can become brand ambassadors.
06. Go the extra mile – Going above and beyond will build strong
relationships with customers and build long-term loyalty by
paying attention to their needs and issues.
07. Make it personal – Personalized service improves customer
experience and is something customers are expecting and
demanding. Make their experience personal to strengthen the
bond with your brand.
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What is employee involvement?
It is effective technique to improve the quality.
Employee involvement is an activity by which
employee participants in work related decisions and
quality improvement activities. It is an activity for
productivity. It is personal commitment by each
employee on quality. Those who come work should
think how each one contribute to improve
management goal instead of attending work. TQM
demands employee involvement.
Four key elements affecting employee involvement

Power-empower employees to make work related

decisions
Information-employees to have enough
information to make meaningful decisions
Knowledge and skills- organization to provide
training and development to improve skills
Rewards- to motivate; provide feelings of self-
worthy and accomplishment (Performance
bonuses)
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Motivation is the relation between need of a

person, incentives and drive them to
achieve. Persons are in need of so many
things in their life expected to fetch through
their earnings. Organization should make
use of their needs and motive to perform
more intelligent in working and effectively.
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EMPLOYEE INVOLVEMENT:
No resource is more valuable to an organization than its own people.
Many organizations view quality problems in terms of operating
personnel. Dr. Deming has estimated that only 15% of the quality
problems of an organization are due to local faults (operators and first-
line supervisors). The rest (85%) are due to the system (management).
Involving people in a quality-improvement program is an effective
technique to improve the quality. Management commitment, annual
quality improvement, education and training, project teams / Quality
Control Circle (QCC), suggestion system and so forth, are all effective in
utilizing the human resources of an organization.
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•Motivation:
• Motivation is a process of psychological deficiency or need
that activates behaviour aimed at goal or incentive.
Motivation is the relation between need of a person,
incentives and drive them to achieve. Persons are in need of
so many things in their life and expected to fetch through
their earnings. An organization should make use of these
needs of person and motivate them to perform more
effectively. Incentive is the end of motivation cycle. It is
defined as anything that will alleviate a need and reduce a
drive. Attaining an incentive tend to restore physiological and
psychological balance
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TQM managers are expected to gain employer’s trust, encourage

employee’s problem solving and promote co-operation among departments.
Dealing with people. team work in participating management, creativity,
innovation, reward, extensive training, high level of communications,
reduction of fear of losing jobs.
Empower teams and not individuals-
Individual empowerment comes from teams.
Team should work in a democratic way.
Solve problems within team itself.
Management will not take part in day to day affair.
It is a processing of equipping the teams and motivating and encouraging
them to carry out the assigned tasks.
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Benefits of empowerment:
It builds confidence in workers by showing them that
the company has confidence in their ability and to
make decision on their own. It gives each employee a
sense of pride and commitment. It gives employees
better experience and opportunity to advance their
careers. It makes them feel part of the company and
committed to the well being of the company.
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Awards and rewards:

Awards:
An Award is conferred in front of the mass public for excellence.
Rewards:
Rewards:
Reward may or may not be given in public, it is a kind
of compensation given to a person for their good work.
Awards should be in the entire organization.
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CONTINUOS PROCESS IMPROVEMENT:
Continuous process improvement (CPI) ensures that your business
survives and strives in the long-term. By constantly re-evaluating and
improving business processes, your organization will be more efficient,
innovative and agile. Continuous process improvement (CPI) is the act
of implementing improvements to a product, service or process. These
changes can either be incremental (over time) or breakthrough (all at
once).
BUSINESS PROCESS IMPROVEMENT:
BPI is the act of improving a process. Continuous process improvement
involves carrying out a BPI initiative whenever it’s needed.
BUSINESS PROCESS MANAGEMENT: It that helps you manage
processes.
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SUPPLIER PARTNERSHIP:
An organization spends about 50 % of the sales value on
purchase of raw materials, components, and services.
Supplier quality is helpful in overall cost of the product or
service. High quality product and services is for the
consumer to work with suppliers in a partnership
atmosphere to achieve the same quality level as attained
within the organization. Customers and suppliers should
have the same level of goal to satisfy the end user.
Customer and suppliers should work together as partners
to maximize their return on investment. Supplier to one
organization is customer for another organization.
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SUPPLIER SELECTION:
• The supplier understands and appreciates the management philosophy of the
organization.
• Supplier must have stable management system.
• The supplier maintains high technical standards and has the capability of dealing with
future technological innovations.
• The supplier can supply precisely as required in term of quantity and time and can
meet the quality specifications.
• The supplier has the capability to produce the quality of production needed or can
attain the capability.
• There is no danger of the supplier breaching corporate secrets.
• The prices are right and the delivery dates can be met.
• The supplier is sincere in implementing the contract provisions.
• The supplier has effective quality systems like ISO 9000, QS 9000 and environmental
ISO 14000.
• The supplier must have record of customer satisfaction and organization credibility.
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SUPPLIER RATING:
The selection of supplier for an organization should be based rating
systems and continuously it should be monitored. The supplier rating is
usually based on quality of the product supplied, timely delivery and
attending the complaints in case of fault. Customer can have
understanding with supplier in developing this rating process so that
supplier will honor it. Numerical scores can be given for each category.
Customers can engaged in an agreement with supplier about rating
process that the supplier stick to the quality specified should be made
known. The rating can be done for each product or overall supplies.
Normally over all supplies by a supplier will always play role on long term
relationship. Managing supplier is one of the important processes that
will ensure successful supplier rating.
PERFORMANCE MEASURES
The objectives of performance measures are:
• Establish baseline measures.
• Determine the process to be improved.
• Indicate the gains and losses of the process.
• Compare the actual performance with goals.
• Provide information for individual and team evaluations.
• Provide information to make informed decisions.
• Determine the overall performance of the organizations