LPM 312 PTQM Reviewed and Corrected Module

Content Developed by: Dr.
Peter Nzuki and Josphat Wakori
UNIVERSITY OF NAIROBI
ODeL CAMPUS
SCHOOL OF OPEN AND DISTANCE LEARNING
DEPARTMENT OF OPEN LEARNING
LPM 312: PROJECT TOTAL QUALITY MANAGEMENT
WRITTEN BY
DR. PETER NZUKI AND JOSPHAT WAKORI KAMAU
©University of Nairobi Page 1 of 115

Content Developed by: Dr. Peter Nzuki and Josphat Wakori
INTRODUCTION
This course unit is on Project Total Quality Management. It involves the application of quality management
principles in carrying out a project. This is important to ensure that the manager meets and exceeds the
customer expectations and all the regulatory and legal requirements. It does not assume prior knowledge on
you. However, background knowledge on management is useful.
The expected learning outcome is to equip you with the knowledge, skills and attitudes so that you can
deliver quality to the customer. This will ensure that you satisfy stated or implied needs of your customer.
The unit contains nine lectures. The first lecture is an introduction to the discipline of quality management.
This is followed by the quality management philosophy contained in lecture two. Lecture three deals with the
total quality management principles and lecture four is on strategic planning. Continuous improvement
strategies are dealt with in lecture five with lecture six dealing with problem solving tools in project work.
The national and international standards on quality in projects are contained in lecture seven whereas the
quality management road map is dealt with in lecture eight. The last lecture is on appraisal and improvement
programmes that a project manager can employ to enhance quality of projects.
The mode of delivery is open, distance and e – learning. Specifically, you will be exposed to the flexible
mode in which you will learn through the learner management system and limited face – to – face tutorials.
You will use the e – learning portal during your home study. Please make use of the Student Handbook to
understand the mode of study. However, note that the unit should take 45 credit hours.
There are three types of evaluations in this course. The first evaluation is assignments or tutor marked
assignments. These are done by individual students and are sent to you through the e-Learning portal. The
assignments must be done and returned through the assignment path to the Department for marking. You
must adhere to the set deadlines for submitting the assignments to enable your tutor to give you feedback in
good time. The second form of assessment is the continuous assessment test. This test is administered to you
during the face – to – face tutorial session and should you one hour to complete. The assignment together
with the one – hour timed test constitute the coursework which carry 30% of the final mark.
The last form of assessment is the end of semester examination which is administered to you at the end of the
semester. It is taken during the last face-to – face tutorial session and takes two hours to complete. This form
of assessment carries 70% of the final mark. Take note that for you to pass in this course unit, you must score
at least 40%.

General
Expected Learning outcomes
At the end of this Course Unit, you should be able to:
 Define quality
 Describe the evolution of quality management.
 Explain the various quality management principles applicable in
projects.
 Describe the process of quality planning for projects.
 Apply various quality improvements strategies in projects.
 Apply quality tools in solving project problems.
 Explain the national and international standards for project quality
management.
 Design a quality management system for a project organization.
 Apply the knowledge of performance appraisal to project management.

LECTURE ONE
INTRODUCTION TO TOTAL QUALITY MANAGEMENT
Introduction
This lecture covers the TQM concept, its elements and the various techniques of measuring products and
service quality
Expected Learning Outcomes
At the end of this lecture, you should be able to:
1. Define a Total quality management(TQM)

2. Highlight various elements of TQM
3. Describe various techniques of measuring quality
4. Explain the main difference between traditional quality management
and total quality management
Total Quality Management
Total Quality Management is a management approach that originated in the 1950s and has steadily become
more popular since the early 1980s. Total Quality is a description of the culture, attitude and organization of
a company that strives to provide customers with products and services that satisfy their needs. The culture
requires quality in all aspects of the company’s operations, with processes being done right the first time and
defects and waste eradicated from operations.
Total Quality Management, TQM, is a method by which management and employees can become involved
in the continuous improvement of the production of goods and services. It is a combination of quality and
management tools aimed at increasing business and reducing losses due to wasteful practices.
Some of the companies who have implemented TQM include Ford Motor Company, Phillips Semiconductor,
SGL Carbon, Motorola and Toyota Motor Company.1
TQM Defined

TQM is a management philosophy that seeks to integrate all organizational functions (marketing, finance,
design, engineering, and production, customer service, etc.) to focus on meeting customer needs and
organizational objectives.
TQM views an organization as a collection of processes. It maintains that organizations must strive to
continuously improve these processes by incorporating the knowledge and experiences of workers. The
simple objective of TQM is “Do the right things, right the first time, every time.” TQM is infinitely variable
and adaptable. Although originally applied to manufacturing operations, and for a number of years only used
in that area, TQM is now becoming recognized as a generic management tool, just as applicable in service
and public sector organizations. There are a number of evolutionary strands, with different sectors creating
their own versions from the common ancestor. TQM is the foundation for activities, which include:
 Commitment by senior management and all employees

 Meeting customer requirements
 Reducing development cycle times
 Just in time/demand flow manufacturing
 Improvement teams
 Reducing product and service costs
 Systems to facilitate improvement
 Line management ownership
 Employee involvement and empowerment
 Recognition and celebration
 Challenging quantified goals and benchmarking
 Focus on processes / improvement plans
 Specific incorporation in strategic planning
Take Note
This shows that TQM must be practiced in all activities, by all personnel, in
manufacturing, marketing, engineering, R&D, sales, purchasing, HR, etc.

Definition and Meaning of Total Quality Management (TQM)
“TQM means that the organization’s culture is defined by and supports the constant attainment of customer
satisfaction through an integrated system of tools, techniques, and training. This involves the continuous
improvement of organizational processes, resulting in high quality products and services”
1. Continuous Improvement (Kaizen)
Continuous improvement, also known as ‘Kaizen’ refers to a philosophy or practises that encourage never-
ending improvements within an organisation across all processes like in manufacturing, engineering,
business development and management. Continuous improvement or Kaizen requires companies to
continuously strive to be better through learning and problem solving. For example, Su-kam continuously
adopted innovative ways of manufacturing inverters plus UPS that earlier required separate UPS system.
Also, they manufactured invertors whose power backup duration lasted to 2 – 3 hours from 10 – 15 minutes.
Deming’s Plan-Do-Study-Act (PDSA) cycle is also a suitable tool used by companies for bringing about
continuous improvement across processes.
2 . Employee empowerment
TQM philosophy in a company also encourages empowerment to their company’s employees. This implies
that employees, as a self-initiative, can seek out problems and correct them. Accordingly, employees are
rewarded for uncovering quality problems and not punished. One of the most common ways of enabling
employee empowerment is to form a “Quality Circle”, which includes a group of employees from different
departments within a company volunteer to solve quality problems (Please refer to notes titled, “Introduction
to Quality” for note on quality circle
3. Use of Quality Tools
To identify quality problems employees require proper training of quality tools. Training of quality tools is
essential towards proper assessment of quality, interpretation of the problems and correction of the problems.
Quality tools can include the “Cause-and-Effect Diagrams” or Ishikawa (Fishbone) diagram (Please refer to
the notes titled, “Introduction to Quality”) that identifies the problem across all processes within a particular
business activity. Other tools include Pareto analysis, checklists (a list of common defects and number of
observed occurrences of these defects), charts like histogram, etc.
4. Product Design
The quality of a product can be built if the product design meets the customers’ expectations. A useful tool
used for determining customers’ expectations is the Quality Function Deployment (QFD) tool. QFD broadly
considers customer requirements by preparing of list of certain characteristics of a product and rating their
importance in accordance to the customers’
5. Process Management
This implies that quality should be built into the process or quality should be maintained right at the source.
If the source of the problem is not identified and corrected, then the problem will continue to be present
further affecting the quality of the final product. For example, if you are baking a cake and you find that a
part of the cake is hard and not as soft as the remaining half, then by simply cutting off that part of the cake
does not solve the problem. Baking a cake would be more effective if you identify the problem that occurred
before and during baking the cake. The problems could be temperature may have been set high, the oven (or
microwave) may not be distributing the heat evenly, etc.
6 Managing Supplier Quality
TQM also extends the concept of quality to the company’s suppliers. Traditionally, companies tend to have
numerous suppliers that are engaged in competitive price bidding. There are pitfalls in selecting a supplier
with the lowest price. Raw materials arriving at the company may be of poor quality leading to additional
costs in quality inspection and delay in production for the searching the right supplier. Companies with few
suppliers have long-term relationships based on trust and business with these suppliers can be continued in
the long-run if the suppliers met preset quality standards that do not require quality inspections. Companies
could also involve suppliers in every stage of business processes right from product design to final
production such that the suppliers are aligned with the companies’ relevant quality needs for producing
quality-based products.

Elements of Total Quality Management

The elements of TQM are the foundations upon which the philosophy is built. Some of the important
elements of total quality management are: (i) Management’s commitment to quality (ii) Customer
satisfaction (iii) Preventing rather than detecting defects (iv) Measurement of Quality (v) Continuous
improvement (vi) Corrective action for root cause (vii) Training (viii) Recognition of high quality (ix)
Involvement of Employees and (x) Benchmarking.
(i) Management’s commitment to quality:
If an organisation is serious about implementing TQM, the lead has to be taken by the top management with
full commitment.
The three levels of management provide a separation between the managerial positions of the organization.
The administrative rank of an organization worker determines the extent of authority, the status enjoyed and
the chain of command that can be controlled by the worker. There are three levels of management found
within an organization, where managers at these levels have different roles to perform for the organization to
have a smooth performance, and the levels are:
1. Top-Level Management
2. Middle-Level Management
3. Low-level Management
The levels of management and their functions are discussed below:
Top Level Management
The Top-Level Management is also referred to as the administrative level. They coordinate services and are
keen on planning. The top-level management is made up of the Board of Directors, the Chief Executive
Officer (CEO), the Chief Financial Officer (CFO) and the Chief Operating Officer (COO) or the President
and the Vice President.
The Top level management controls the management of goals and policies and the ultimate source of
authority of the organization. They apply control and coordination of all the activities of the firm as they
organize the several departments of the enterprise which would include their budget, techniques, and
agendas.
The Top-level management is accountable to the shareholders for the performance of the organization. There
are several functions performed by the top-level management, but three of them are the most important, and
they are:
 To lay down the policies and objective of the organization

 Strategizing the plans of the enterprise and aligning competent managers to the departments or
middle level to carry them out.
 Keeping the communication between the enterprise and the outside world.
The top management must initiate quality improvement programmes. The top management should continue
all the efforts and provide the resources to continue quality improvement programmes. This is provided by
collecting, reporting and use of quality related cost information.
(ii) Customer satisfaction
TQM is designed in such a manner so as to meet the expectations of customers. In the present era, customer
is the king. It must be recognized that customers are the most important persons for any business. The very
existence of an organisation depends on them. They are the life blood of a business and deserve the most
courteous and affectionate treatment.
(iii) Preventing rather than detecting defects
TQM checks the poor quality products or services rather than simply to detect and sort out defects.
“Prevention rather than detection” is the main characteristic of TQM. Some of the important techniques of
TQM which aim at the prevention of defects rather than the detection of the defects are statistical process
control, continuous process improvement and problem solving and system failure analysis etc.
(iv) Measurement of Quality
Quality is a measurable entity and we must know what current quality levels are i.e. where we are or where
we stand in respect of the quality and what quality levels we are aspiring for or where we are going

(v) Continuous improvement:
TQM comprises of a continuous process of improvement covering people, equipment, suppliers, materials
and procedures. It includes every aspect of an operation in an organisation. In Japan the word “Kaizen” is
used to describe the continuous process of improvement. In USA, TQM zero defects and six-sigma are used
to describe such efforts.
(vi) Corrective action for root cause:
TQM aims at preventing repetition of problems by identifying the root causes for their occurrence and
developing means and corrective actions to solve the problems of the root level. Failure analysis and problem
solving skills are very useful techniques in this regard.
(vii) Training:
Proper training programmes have to be undertaken to train the employees for the use of TQM concepts and
techniques. Employees have to be provided regular training for continuous improvement.
(viii) Recognition of high quality:
TQM aims at developing long term relationships with a few high quality suppliers rather than those suppliers
who supply the inferior goods at the low cost.
(ix) Involvement of Employees:
Involvement of employees means that every employee is completely involved at every step of production
process which plays an active role in helping the organisation to meet its targets. Employee involvement and
empowerment can be assured by enlarging the employee’s job so that responsibility and authority is moved
to the lowest level possible in the organisation.
(x) Benchmarking:
Benchmarking is a systematic method by which organizations can measure themselves against the best
industry practices. Benchmarking aims at developing best practices that will lead to better performance. It
helps a company to learn and incorporate the best practices into its own operations. Benchmarking is a
technique of distinguishing an organization’s efforts with the best performance in the field and also to
suggest how the gap between the two performances can be removed. Thus, benchmarking is a technique of
continuous improvement.
The Concept of Continuous Improvement by TQM
TQM is mainly concerned with continuous improvement in all work, from high level strategic planning and
decision-making, to detailed execution of work elements on the shop floor. It stems from the belief that
mistakes can be avoided and defects can be prevented. It leads to continuously improving results, in all
aspects of work, as a result of continuously improving capabilities, people, processes, technology and
machine capabilities.
Continuous improvement must deal not only with improving results, but more importantly with improving
capabilities to produce better results in the future. The five major areas of focus for capability improvement
are demand generation, supply generation, technology, operations and people capability.
A central principle of TQM is that mistakes may be made by people, but most of them are caused, or at least
permitted, by faulty systems and processes. This means that the root cause of such mistakes can be identified
and eliminated, and repetition can be prevented by changing the process.1
There are three major mechanisms of prevention:
1. Preventing mistakes (defects) from occurring (mistake-proofing or poka-yoke).

2. Where mistakes can’t be absolutely prevented, detecting them early to prevent them being passed
down the value-added chain (inspection at source or by the next operation).
3. Where mistakes recur, stopping production until the process can be corrected, to prevent the
production of more defects. (Stop in time).
How to Measure the Quality of a Product by David Garvin
Improving the product quality is one of the most important functions of a leader. However, it is a very
subjective substance for both employees and customers...

Improving the product quality is one of the most important functions of a leader. However, it is a very
subjective substance for both employees and customers. One user may assume that the product fully meets
his needs while the other will complain about the shortcomings. More over, even the teammates may also
have different opinions!
So what is the improvement of product quality, a fundamentally important business goal or the misplaced
perfectionism leading to nothing but the loss of time and money? Where is the balance? Can we treat quality
as something tangible and measurable?
What Do Customers Want?
David Garvin published his model in 1987 when consumers were no longer assured of quality products
created in the United States. He believed that the traditional methods of quality management had not paid off
for a reason they were aimed at protecting consumers from what they don’t want instead of focusing on what
they really want.
Garvin argued that companies always need the approval of customers, but at the same time set individual
quality standards.
Garvin’s model examines the perception of the customer through the prism of high-quality products and
services of the company and its competitors. According to Garvin, "Quality is not just a problem to be solved
but also a competitive advantage."
Eight Criteria of Quality
Although quality is something ephemeral, something that is born in consumer perceptions and is shaped in a
certain way, Gavin managed to identify eight criteria that allow consumers to define the quality of goods and
services:
1. Execution. How good is this product? How good is it compared to the competitor’s one?
2. Features. Features are the minor but surprising criterion. Sometimes consumers appreciate these pleasant
things much more than the actual performance of the product or competent service delivery. Take, for
example, free drinks onboard.

3. Reliability. How long will the product retain its quality and functions? Obviously, the degree of reliability
depends on the goal of the product. For example, car tires must be very reliable for obvious reasons.
4. Compliance with standards. How long will the product or service meet the standards? Garvin referred to
the research of Genichi Taguchi who argued that in many cases it is possible to predict whether the product
or service will be successful in the future For example, sales are falling gradually and follow certain
predictable patterns of behavior while compliance with standards is getting worse. Examples of poor
compliance: labels with spelling errors, delay in delivery, errors in operation, etc. Standards become obsolete
with time, which inevitably leads to the decrease in sales.
5. Durability. This criterion defines how much the consumer will benefit from the product service before it
starts to lose its quality. For example, a piano can outlive its owner while beach shorts may be relevant only
for one season.
6. Service. How fast can you return the good and how long it will take to fix it? This includes both technical
fix and the rate at which the company handles complaints of customers and takes decisions.
7. Aesthetics. Many companies are trying to comply with the six previous criteria, putting aesthetics aside.
Well, the opposite also happens. Sometimes products are aesthetically beautiful but unsuitable for use.
Aesthetics is how the product looks, smells, sounds and feels.
8. Perceived quality. That’s the customer's perception of the overall quality or superiority of a product or
service with respect to its intended purpose, relative to alternatives. Garvin treats reputation as the main
aspect of perceived quality.
How to Apply Garvin’s Model to today.
Garvin claims that you should not follow all eight criteria to be successful. Moreover, sometimes it is even
harmful because it provides too much while clients are interested in simple, understandable product.
Therefore, you should determine which criteria are the most important for your customers.
Some companies believe that they can be trendsetters in business, and intentionally do not analyze the needs
of consumers. However, this can bring success only to the giants like Apple as people listen to them and trust
them. As for the others, they need to study the market along with the needs and demands of potential clients.

Don’t forget that you should follow the perception of your customers, not yours or your employees! I wish
you all the best in your business endeavors!
Practical Methods for Measuring Service Quality
We like to measure stuff. How long we can hold our breath, our weight before and after a workout, the IQ of
our kids... Through measurement we can compare, aim, and improve. But some things are less
straightforward to measure. Like service quality.
But measuring service quality is absolutely crucial. Although it's not the same as customer satisfaction —
which has its own methods — there’s a strong and positive correlation between the two.
Here are practical techniques and metrics for measuring your service quality.
1. Servqual
This is the most common method for measuring the subjective elements of service quality. Through a survey,
you ask your customers to rate the delivered service compared to their expectations.
SERVQUAL is based on five 5 elements of service quality:
RATER.
 Reliability - the ability to deliver the promised service in a consistent and accurate manner.
 Assurance - the knowledge level and politeness of the employees and to what extend they create
trust and confidence.
 Tangibles - the appearance; of e.g. the building, website, equipment, and employees.
 Empathy - to what extend the employees care and give individual attention.
 Responsiveness - how willing the employees are to offer a speedy service.
2. Mystery Shopping
This is a popular technique used for retail stores, hotels, and restaurants, but works for any other service as
well. It consists out of hiring an ‘undercover customer’ to test your service quality – or putting on a fake
moustache and going yourself, of course.

The undercover agent then assesses the service based on a number of criteria, for example those provided by
SERVQUAL. This offers more insights than simply observing how your employees work. Which will
probably be outstanding — as long as their boss is around.
3. Post Service Rating
This is the practice of asking customers to rate the service right after it’s been delivered.
With User like’s live chat, for example, you can set the chat window to change into a service rating view
once it closes. The customers make their rating, perhaps share some explanatory feedback, and close the
chat.
It’s also done in phone support. The service rep asks whether you’re satisfied with her service delivery, or
you’re asked to stay on the line to complete an automatic survey. The latter version is so annoying, though,
that it kind of destroys the entire service experience.
Different scales can be used for the post service rating. Many make use of a number-rating from 1 – 10.
There’s possible ambiguity here, though, because cultures differ in how they rate their experiences.
People from individualistic cultures, for example, tend to choose the extreme sides of the scale much more
often than those from collectivistic cultures. In line with stereotypes, Americans are more likely to rate a
service as “amazing” or "terrible", while the Japanese will hardly ever go beyond “fine” or "not so good".
Important to be aware of when you have an international audience.
Simpler scales are more robust to cultural differences and more suited for capturing service quality.
Customers don’t generally make a sophisticated estimation of service quality.
“Was it a 7 or an 8...? Well... I did get my answer quickly... On the other hand, the service agent did sound a
bit hurried…” No. They think the service was “Fine”, “Great!”, or “Crap!”
4. Follow-Up Survey
With this method you ask your customers to rate your service quality through an email survey – for example
via Google Forms. It has a couple advantages over the post-service rating.

For one, it gives your customer the time and space for more detailed responses. You can send a SERVQUAL
type of survey, with multiple questions instead of one. That’d be terribly annoying in a post-service rating.
It also provides a more holistic overview of your service. Instead of a case-by-case assessment, the follow-up
survey measures your customers’ overall opinion of your service.
It’s also a useful technique if you didn’t have the post service rating in place yet and want a quick overview
of the state of your service quality.
But there are plenty of downsides as well. Such as the fact that the average inbox already looks more like a
jungle than a French garden. Nobody’s waiting for more emails – especially those that demand your time.
With a follow-up survey, the service experience will also be less fresh. Your customers might have forgotten
about it entirely, or they could confuse it with another experience.
And last but not least: to send an email survey, you must first know their emails.
5. In-App Survey
With an in-app survey, the questions are asked while the visitor is on the website or in the app, instead of
after the service or via email. It can be one simple question – e.g. ‘how would you rate our service’ – or it
could be a couple of questions
Convenience and relevance are the main advantages.
6. Customer Effort Score (CES)
This metric was proposed in an influential Harvard Business Review article. In it, they argue that while many
companies aim to ‘delight’ the customer – to exceed service expectations – it’s more likely for a customer to
punish companies for bad service than it is for them to reward companies for good service.
While the costs of exceeding service expectations are high, they show that the payoffs are marginal. Instead
of delighting our customers, so the authors argue, we should make it as easy as possible for them to have
their problems solved.

Looking for better customer relationships?
Test User like for free and chat with your customers on your website, Facebook Messenger, and Telegram.
Don’t ask: “How satisfied are you with this service?” – Its answer could be distorted by many factors, such
as politeness. Ask: “How much effort did it take you to have your questioned answered?”
7. Social Media Monitoring
This method has been gaining momentum with the rise of social media. For many people, social media serve
as an outlet. A place where they can unleash their frustrations and be heard.
And because of that, they are the perfect place to hear the unfiltered opinions of your customers – if you have
the right tools. Facebook and Twitter are obvious choices, but also review platforms like Trip Advisor or
Yelp can be very relevant.
Documentation Analysis
With this qualitative approach you read or listen to your respectively written or recorded service records.
You’ll definitely want to go through the documentation of low-rated service deliveries, but it can also be
interesting to read through the documentation of service agents that always rank high. What are they doing
better than the rest?
The hurdle with the method isn’t in the analysis, but in the documentation. For live chat and email support
it’s rather easy, but for phone support it requires an annoying voice at the start of the call: “This call could be
recorded for quality measurement”.
8. Objective Service Metrics
These stats deliver the objective, quantitative analysis of your service. These metrics aren’t enough to judge
the quality of your service by themselves, but they play a crucial role in showing you the areas you should
improve in;
 Volume per channel.

This tracks the amount of inquiries per channel. When combined with other metrics, like those
covering efficiency or customer satisfaction, it allows you to decide which channels to promote or cut
down.
 First response time.
This metric tracks how quickly a customer receives a response on her inquiry. This doesn’t mean
their issue are solved, but it’s the first sign of life – notifying them that they’ve been heard
 Response time
This is the total average of time between responses. So let’s say your email ticket was resolved with 4
responses, with respective response times of 10, 20, 5, and 7 minutes. Your response time is 10.5
minutes. Concerning reply times, most people reaching out via email expect a response within 24
hours; for social channels it’s 60 minutes. Phone and live chat require an immediate response, under
2 minutes.
 First contact resolution ratio.
Divide the number of issues that's resolved through a single response by the number that required
more responses.
 Replies per ticket
This shows how many replies your service team needs on average to close a ticket. It’s a measure of
efficiency and customer effort.
 Backlog Inflow/Outflow
This is the number of cases submitted compared to the number of cases closed. A growing number
indicates that you’ll have to expand your service team.
 Customer Success Ratio.

A good service doesn’t mean your customers always find what they want. But keeping track of the
number that found what they looked for versus those that didn’t, can show whether your customers
have the right ideas about your offerings.
 ‘Handovers’ per issue.
This tracks how many different service reps are involved per issue. Especially in phone support,
where repeating the issue is necessary, customers hate handovers. HBR identified it as one of the four
most common service complaints.
 Things Gone Wrong.
The number of complaints/failures per customer inquiry. It helps you identify products, departments,
or service agents that need some ‘fixing’.
 Instant Service / Queuing Ratio.
Nobody likes to wait. Instant service is the best service. This metric keeps track of the ratio of
customers that were served instantly versus those that had to wait. The higher the ratio, the better
your service.
 Average Queuing Waiting Time.
The average time those queued customers have to wait to be served.
 Queuing Hang-ups.
How many customers quit the queuing process? These count as a lost service opportunity.
 Problem Resolution Time.
The average time before an issue is resolved.
 Minutes Spent Per Call.
This can give you insight on who are your most efficient operators.

Some of these measures are also financial metrics, such as the minutes spent per call and number of
handovers. You can use them to calculate your service costs per service contact. Winning the award for the
world’s best service won’t get you anywhere if the costs eat up your profits.
Some service tools keep track of these sort of metrics automatically, like Talk desk for phone and User like
for live chat support. If you make use of communication tools that aren’t dedicated to service, tracking them
will be a bit more work.
One word of caution for all above mentioned methods and metrics: beware of averages, they will deceive
you. If your dentist delivers a great service 90% of the time, but has a habit of binge drinking and pulling out
the wrong teeth the rest of the time, you won’t stick around long.
A more realistic image shapes up if you keep track of the outliers and standard deviation as well. Measure
your service, aim for a high average, and improve by diminishing the outliers.
Implementation Principles and Processes
A preliminary step in TQM implementation is to assess the organization’s current reality. Relevant
preconditions have to do with the organization’s history, its current needs, precipitating events leading to
TQM, and the existing employee quality of working life. If the current reality does not include important
preconditions, TQM implementation should be delayed until the organization is in a state in which TQM is
likely to succeed.
If an organization has a track record of effective responsiveness to the environment, and if it has been able to
successfully change the way it operates when needed, TQM will be easier to implement. If an organization
has been historically reactive and has no skill at improving its operating systems, there will be both
employee skepticism and a lack of skilled change agents. If this condition prevails, a comprehensive program
of management and leadership development may be instituted. A management audit is a good assessment
tool to identify current levels of organizational functioning and areas in need of change. An organization
should be basically healthy before beginning TQM. If it has significant problems such as a very unstable
funding base, weak administrative systems, lack of managerial skill, or poor employee morale, TQM would
not be appropriate.5

However, a certain level of stress is probably desirable to initiate TQM. People need to feel a need for a
change. Kanter (1983) addresses this phenomenon be describing building blocks which are present in
effective organizational change. These forces include departures from tradition, a crisis or galvanizing event,
strategic decisions, individual “prime movers,” and action vehicles. Departures from tradition are activities,
usually at lower levels of the organization, which occur when entrepreneurs move outside the normal ways
of operating to solve a problem. A crisis, if it is not too disabling, can also help create a sense of urgency
which can mobilize people to act. In the case of TQM, this may be a funding cut or threat, or demands from
consumers or other stakeholders for improved quality of service. After a crisis, a leader may intervene
strategically by articulating a new vision of the future to help the organization deal with it. A plan to
implement TQM may be such a strategic decision. Such a leader may then become a prime mover, who takes
charge in championing the new idea and showing others how it will help them get where they want to go.
Finally, action vehicles are needed and mechanisms or structures to enable the change to occur and become
institutionalized.8
Steps in Managing the Transition
Beckhard and Pritchard (1992) have outlined the basic steps in managing a transition to a new system such
as TQM: identifying tasks to be done, creating necessary management structures, developing strategies for
building commitment, designing mechanisms to communicate the change, and assigning resources.
Task identification would include a study of present conditions (assessing current reality, as described
above); assessing readiness, such as through a force field analysis; creating a model of the desired state, in
this case, implementation of TQM; announcing the change goals to the organization; and assigning
responsibilities and resources. This final step would include securing outside consultation and training and
assigning someone within the organization to oversee the effort. This should be a responsibility of top
management. In fact, the next step, designing transition management structures, is also a responsibility of top
management. In fact, Cohen and Brand (1993) and Hyde (1992) assert that management must be heavily
involved as leaders rather than relying on a separate staff person or function to shepherd the effort. An
organization wide steering committee to oversee the effort may be appropriate. Developing commitment
strategies was discussed above in the sections on resistance and on visionary leadership.6
To communicate the change, mechanisms beyond existing processes will need to be developed. Special all-
staff meetings attended by executives, sometimes designed as input or dialog sessions, may be used to kick

off the process, and TQM newsletters may be an effective ongoing communication tool to keep employees
aware of activities and accomplishments.
Management of resources for the change effort is important with TQM because outside consultants will
almost always be required. Choose consultants based on their prior relevant experience and their
commitment to adapting the process to fit unique organizational needs. While consultants will be invaluable
with initial training of staff and TQM system design, employees (management and others) should be actively
involved in TQM implementation, perhaps after receiving training in change management which they can
then pass on to other employees. A collaborative relationship with consultants and clear role definitions and
specification of activities must be established.
In summary, first assess preconditions and the current state of the organization to make sure the need for
change is clear and that TQM is an appropriate strategy. Leadership styles and organizational culture must be
congruent with TQM. If they are not, this should be worked on or TQM implementation should be avoided
or delayed until favorable conditions exist.
Remember that this will be a difficult, comprehensive, and long-term process. Leaders will need to maintain
their commitment, keep the process visible, provide necessary support, and hold people accountable for
results. Use input from stakeholder (clients, referring agencies, funding sources, etc.) as possible; and, of
course, maximize employee involvement in design of the system.7
Always keep in mind that TQM should be purpose driven. Be clear on the organization’s vision for the future
and stay focused on it. TQM can be a powerful technique for unleashing employee creativity and potential,
reducing bureaucracy and costs, and improving service to clients and the community.
Take Note
Traditional and total quality management differs in philosophy,

implementation and measurement. In traditional quality management,
supervisors tell employees what to do based on the organization’s short-term

goals and objectives. With total quality management, all members of an

organization – from the lowest employee to the highest executive – pursue
long-term success in terms of customer satisfaction.
The Difference between Traditional and Total Quality Management
1. Quality Defined by Company vs. Customer
With traditional quality management, the company defines its quality standards and determines whether a
particular product is acceptable. In total quality management, customers determine a product’s quality. A
company can change its standards, train employees or revise its processes, but if customers aren’t satisfied,
then the organization isn’t producing a quality product.
2. Emphasizing Short-Term vs. Long-Term Success
Traditional quality management emphasizes the achievement of short-term objectives, such as the number of
products produced or profits earned in a quarter. Total quality management looks at long-term improvements
in how a product is produced and the sustained satisfaction of customers.
3. Improving People vs. Improving Processes
If defects are found through traditional quality management, managers identify who is responsible and hold
them accountable. With total quality management, managers and employees look at how they can improve
quality by changing the processes used to produce a product.
4. Managing With Fear vs. Motivating With Rewards
In traditional quality management, managers rely their on authority as supervisors to tell employees what to
do. They may even use fear to motivate and threaten to discipline or even to fire employees. In total quality
management, employees are given opportunities to improve themselves. They are rewarded for the
achievement of individual, departmental or organizational goals.
5. Accountability of the Few vs. Responsibility of the Many

With traditional management, only the employees who are directly involved in producing a product are
responsible for its quality. With total quality management, everyone in an organization – including the top
executives – are responsible for the quality of each product that the company produces.
6. Acting on Instincts vs. Deciding by Facts
In traditional quality management, supervisors and employees solve problems and act based on their
individual knowledge, skills and instincts. In total quality management, multiple employees, teams or
departments solve problems and make decisions based on substantive data.
7. Isolation vs. Cooperation
Each employee has a specific role that is narrowly defined by a supervisor in traditional quality management.
Total quality management involves managers and employees working together in an integrated capacity that
involves more than one role or responsibility at a time.
8. Correcting Errors vs. Getting It Right the First Time
Traditional quality management requires the reproduction of any product with defects. Total quality
management emphasizes eliminating waste and increasing efficiencies so that a product is produced correctly
the first time.
9. Fighting Fires vs. Continuously Improving
Traditional quality management addresses problems as they arise, resolving them on a case-by-case basis.
Total quality management emphasizes continuous process improvement, resolving issues systematically.
Framework of TQM.
1. “ TQM the set of management processes and systems that create delighted customers through
empowered employees, leading to higher revenue and lower cost” (Juran Institute,Inc).
2. TQM,
 -Everyone should be involved

 Quality-Customers should be provided with a uniform product that meets their
expectations.
3. TQM is the application of quantitative methods and human resources to improve all the
processes within an organization and exceed CUSTOMER NEEDS now and in the future.
4. TQM Introduction has four main sections. These sections are:
 Motivation for TQM is to be identified. It helps to set overall strategic direction of

TQM and influence the Foundation of the framework of TQM is “organizing”
 Two pillars are systems and techniques and measurement
 And feedback changing the culture is considered at all stages and interacts with them
through all the process.
 People both as individuals and group are central to TQM and without their skills
improvement will not occur.
5. Various aspects of TQM fit together and is particularly useful for those organizations who
Are taking first steps on the TQM journey to;
 Have got ISO 9000 series registration and require some guidance and advice on what
to do next.
 Have not less than 3yrs operating experience of TQM and continuous improvement
6. Organizing of TQM:
 Motivation for starting TQM and a process of continuous improvement

 Time to introduce TQM must also be considered
 Communicate across organization what is TQM and why it’s adopted and what is
involved, including the cost and required resources.
 It’s Useful to consider the problem and helps to minimize them.
7. A clear long term strategy for TQM;
 Should be formulated and integrated with other key business strategies, departmental
policies and objectives.
 This also includes the development of a quality policy and quality strategy. The aim
should be to integrate them with the long term plans of the business.( any short term
strategy integrate with long term)
8. The approach of TQM should be decided.(culture of org and should be flexible)
 The organizations and people who can be sources of advice on the approach of TQM
and its introduction and development, should be identified.(advice is also require to
develop quality)
 Stages of improvement activity should be identified at the outset, taking into account
the starting point of the organization, motivation for TQM and tools and techniques
which may be applicable.
 Vision and mission statements. These must be understandable to all employees and
should be developed, displayed and communicated in company unique language. It’s
important that everyone in the organization identified with the vision and mission
statements (vision should be achievable)
9. Communication is a key component of TQM
 management cannot communicate too much on issues relating to TQM and

improvement made(common sense, two way, heart and mind of employees, both
written and verbal mediums)
 A formal program of education and training should be established( tools, techniques)
10. Tools and techniques
 Applicable at each stages of improvement process should be identified.

 The right type of training targeted at the right people should be developed(to stop
misuse of tools and techniques)
 Process analysis and improvement should be a continual part of the organization’s
improvement process.(focus processes rather than functions)
11. Internal and external performance should be;
 identified and defined(2-way flow of information between org and customers and
supplier)

 Discussion with customers about the performance expected( partnership with

customers and develop customer loyalty)
 Means of celebrating and communicating success with TQM should be considered
and methods developed for recognizing the efforts of teams and individuals.(
recognition, rewards and incentives for quality effort)
12. Linking rewards to improvement activities must be considered (financial payments)

13. An assessment for both management and employee
 Perspectives of the current status of the current status of the org culture should be
undertaken before firm plans for change are developed.(senior management must be
prepared for conflicts) Change should be planned and take place in a consistent and
incremental manner.
 Role of people within the organization should be recognized
14. Teamwork is an important facilitator in culture change,
 But organization must ensure that the org infrastructure can adapt to the changes
which teamwork will bring.
15. Review the org adoption of TQM to date(presentation)
 Customize the framework to suit the individual’s organization.

 Present and debate the customized
 Framework (spokesperson will explain) Assess which features of the framework are
already in place.
 Prioritize the features which are not already in place
16. Develop plans to introduce the prioritized features of:
the framework identified in the previous stage(stage 6) (start and finish date)
Communicate the details of the framework
 To suppliers and customers) identify any potential problems in putting the plan
developed at stage 6 into place.
Challenges facing implementation of TQM
There are many challenges that a project organization is likely to face in implementing TQM. These
challenges are as outlined here,
1. Too much theory
Organizations that are striving for perfection often go overboard. In an attempt to implement the “perfect”
Quality Management System, they often focus more on theory than on putting theory into practice.
Lesson 1: The perfect QMS doesn’t exist, but every QMS can and should be improved over time. When
designing a QMS, make sure it is practical for the company. Theory is useless when you don’t put it into
practice. Focus on the theory, but focus even more on the implementation of that theory and the added value
for your organization.
2. Too much documentation
Many organizations create way too many documents; sometimes even to such an extent that the
documentation starts hindering the functioning of the Quality Management System. In such cases, employees
can get lost in the documentation and they may lose interest in the QMS. As a result, the QMS will not yield
the expected results.
Lesson 2: The objective of a QMS is not to create paperwork, but to formalize the right information (to be
more efficient) at the right time. Make sure that your documentation supports the communication of
information, proof of compliance (evidence of results achieved) and knowledge sharing and that it never
hinders your daily operations.
3. Too many details
Organizations often want their documentation to include as many details as possible. Evidently, this takes
time and resources, and will result in a more difficult application of the documentation.
Lesson 3: Make sure that your documentation is compliant with all the laws and regulations and that it
supports (and doesn’t hinder) the different activities of your company. Some documents may require a high
level of detail, others don’t. It is up to you to choose the appropriate level of detail for your situation. Think
lean: include all and only the most important information at the right time.

4. Too much rigidity
If your Quality Management System is too rigid and inflexible it will be difficult to improve when necessary.
As a result, it may not guarantee the best results for the future.
Lesson 4: Customer requirements and organizations are constantly evolving. Therefore, Quality Management
Systems must evolve as well. They must be improved over time to remain consistent with the changing
circumstances of your business. This will improve your performance and enable you to seize new
opportunities.
5. Not enough implication and communication
From time to time, a Quality Management System is only supported by the Quality Manager(s). In such
cases, colleagues often think that the QMS ‘belongs’ to the people who created it and -as a consequence –
they don’t actively contribute to the quality system. Instead, they just ‘follow’ the QMS whenever necessary.
Lesson 5: Make sure your staff members clearly understand their role and responsibilities in the Quality
Management System. Otherwise they won’t feel part of the system. You need the full support of your entire
organization to get the desired results.
It takes great leadership and communication skills to get the most from a QMS. If you inform your staff
about successes and challenges it will serve as a motivation, and if you share lessons learned it will start
discussions that will prevent you from making the same mistakes again.
6. Not enough motivation
When organizations implement a QMS because of external factors only (e.g. a client demands a certified
QMS, competitors have an advantage because they are certified and you are not), it will be hard to get the
best results from your QMS.
Lesson 6: Top management and staff should be fully on board and intrinsically motivated to get the best
results from your QMS. Everyone must feel responsible for the overall quality of the product(s) or service(s)
you offer and everyone should know his/her role in the .QMS

7. Not suitable enough
Sometimes a Quality Management System is ‘delivered’ as a ‘ready to use’ system. However, if a QMS is
out of sync with the company’s strategy and operations, it will be very difficult to get the results you want.
Lesson 7: Quality Management Systems such as ISO 9001 are based on the obligation of results but not on
the obligation of how to reach them. It is up to the company to choose the way that suits them most, so set up
your Quality Management System in a way that fully supports your staff, processes and business.
8. Not enough attention to customers
We often see that companies are focused on quality but not so much on customer satisfaction.
Lesson 8: Without your customers, there is no business. Never forget that Quality Management Systems such
as ISO 9001 are based on customer satisfaction. The goal is to achieve and maintain customer confidence.
Therefore, it is necessary to know your customers’ requirements and expectations and to measure your
customers’ satisfaction continuously.
How to Successfully Implement a Quality Manageme nt System
The following 8 tips may help you to successfully implement your next Quality Management System:
 Implement a QMS that is practical for your business
 Develop effective document management in line with your activities
 Use a level of detail that is appropriate for your activities
 Stay aware of changes to continually improve your system
 Involve your staff and communicate their roles and responsibilities
 Make sure all stakeholders are intrinsically motivated
 Set up a system that suits you
 Stay focused on customer satisfaction

Self – Assessment Questions.
1. Describe the main classifications of quality costs that organizations have to

meet to satisfy customers.
2. Discuss the evolution of quality management philosophy.
3. Explain various dimensions that organizations can use to evaluate quality.
4. Describe various quality dimensions.
5. Enumerate reasons that make organizations today to view quality

management as an important aspect of strategic planning.
SUMMARY
TQM encourages participation amongst shop floor workers and managers. There is no single theoretical
formalization of total quality, but Deming, Juran and Ishikawa provide the core assumptions, as a
“…discipline and philosophy of management which institutionalizes planned and continuous… improvement
… and assumes that quality is the outcome of all activities that take place within an organization; that all
functions and all employees have to participate in the improvement process; that organizations need both
quality systems and a quality culture.”
References
1. Gilbert, G. (1992). “Quality Improvement in a Defense Organization.” Public Productivity and

Management Review, 16(1), 65-75.
2. Hyde, A. (1992). “The Proverbs of Total Quality Management: Recharting the Path to Quality
Improvement in the Public Sector.” Public Productivity and Management Review, 16(1), 25-37.
3. Martin, L. (1993). “Total Quality Management in the Public Sector,” National Productivity Review, 10,
195-213.
4. Swiss, J. (1992). “Adapting TQM to Government.” Public Administration Review, 52, 356-362.
5. Tichey, N. (1983). Managing Strategic Change. New York: John Wiley & Sons.
6. Hill Stephen, 1991. “Why Quality Circles Failed but Total Quality Management Might Succeed.” British
Journal of Industrial Relations, 29(4), 541-568.
7. Ishikawa, K, 1985.What Is Total Quality Control? The Japanese Way. Englewood Cliffs, New
LECTURE TWO
EVOLUTION OF TOTAL QUALITY MANAGEMENT

Introduction
This section highlights the evolution of the quality concept over time and compare and contrast the various
theories of quality management under different quality gurus.
Expected outcomes.
1. Describe the process of evolution of quality management over time

2. Explain the benefits of TQM in an organization.
3. Compare and contrast theories of various quality management gurus
Definition of TQM
Total quality Management (TQM) is defined as both as philosophy and a set of guiding principles that
represent the foundation of a continuously improving organization.
Basic Approach TQM requires six basic concepts:
1. A commitment and involved management to provide long-term top-to-bottom organizational
support.
2. An unwavering focuses on the customer, both internally and externally.
3. Effective involvement and utilization of the entire work force.
4. Continuous improvement of the business and production process.
5. Treating suppliers as partners.
6. Establish performance measures such as uptime, percent nonconforming, absenteeism and customer
satisfaction should be determined for the process. Quantitative data are necessary to measure the
continuous quality improvement activity
Table 1: GURUS OF TQM:
Shewhart Control chart theory PDCA Cycle

Deming Statistical Process Control
Juran Concepts of Shewhart Return on Investmen

Feiganbaum Total Quality Control

Management involvement
Employee involvement
Company wide quality control
Ishikawa Cause and Effect diagram Quality circle concept
Crosby Quality is Free Conformance to requirement
Taguchi Loss function concept Design of Experiments
Figure 1. Benefits to TQM

A quality management system is a management technique used to communicate to employees what is
required to produce the desired quality of products and services and to influence employee actions to
complete tasks according to the quality specifications .

Figure 2. Purpose of quality management
The concept of quality has existed for many years, though its meaning has changed and evolved over
time. In the early twentieth century, quality management meant inspecting products to ensure that they met
specifications. In the 1940s, during World War II, quality became more statistical in nature. Statistical
sampling techniques were used to evaluate quality, and quality control charts were used to monitor the
production process. In the 1960s, with the help of so-called “quality gurus,” the concept took on a broader
meaning. Quality began to be viewed as something that encompassed the entire organization, not only the
production process. Since all functions were responsible for product quality and all shared the costs of poor
quality, quality was seen as a concept that affected the entire organization. The meaning of quality for
businesses changed dramatically in the late 1970s. Before then quality was still viewed as something that
needed to be inspected and corrected. However, in the 1970s and 1980s many U.S. industries lost market
share to foreign competition. In the auto industry, manufacturers such as Toyota and Honda became major
players. In the consumer goods market, companies such as Toshiba and Sony led the way. These foreign
competitors were producing lower-priced products with considerably higher quality. To survive, companies
had to make major changes in their quality programs. Many hired consultants and instituted quality training
programs for their employees. A new concept of quality was emerging. One result is that quality began to
have a strategic meaning. Today, successful companies understand that quality provides a competitive
advantage. They put the customer first and define quality as meeting or exceeding customer expectations.
Since the 1970s, competition based on quality has grown in importance and has generated tremendous
interest, concern, and enthusiasm. Companies in every line of business are focusing on improving quality in
order to be more competitive. In many industries quality excellence has become a standard for doing
business. Companies that do not meet this standard simply will not survive. As you will see later in the
chapter, the importance of quality is demonstrated by national quality awards and quality certifications that
are coveted by businesses. The term used for today’s new concept of quality is total quality management or
The new concept is proactive, designed to build quality into the product and process design. Next, we look at
the individuals who have shaped our understanding of quality .
To fully understand the TQM movement, we need to look at the philosophies of notable individuals
who have shaped the evolution of TQM. Their philosophies and teachings have contributed to our
knowledge and understanding of quality today. Their individual contributions are summarized in Table 2.

Table 2
Time Focus
Early 1900s Inspection Old Concept of Quality: Inspect for quality
1940s Statistical sampling after production.
1960s Organizational quality focus
1980s and Beyond Customer driven quality New Concept of Quality: Build quality into
the process. Identify and correct causes of
quality problems.
Walter A. Shewhart was a statistician at Bell Labs during the 1920s and 1930s. Shewhart studied
randomness and recognized that variability existed in all manufacturing processes. He developed quality
control charts that are used to identify whether the variability in the process is random or due to an
assignable cause, such as poor workers or miscalibrated machinery. He stressed that eliminating variability
improves quality. His work created the foundation for today’s statistical process control, and he is often
referred to as the “grandfather of quality control” .
W. Edwards Deming is often referred to as the “father of quality control.” He was a statistics professor at
New York University in the 1940s. After World War II he assisted many Japanese companies in improving
quality. The Japanese regarded him so highly that in 1951 they established the Deming Prize, an annual
award given to firms that demonstrate outstanding quality. It was almost 30 years later that American
businesses began adopting Deming’s philosophy. A number of elements of Deming’s philosophy depart
from traditional notions of quality .
Table 3: Evolution of Total Quality Management: TQM Timeline & History of TQM
 Some of the first seeds of quality management were planted as the principles of scientific
management swept through U.S. industry.
 Businesses clearly separated the processes of planning and carrying out the plan, and union
1920s opposition arose as workers were deprived of a voice in the conditions and functions of their work.
 The Hawthorne experiments in the late 1920s showed how worker productivity could be
impacted by participation.

 Walter Shewhart developed the methods for statistical analysis and control of quality.
1930s
 W. Edwards Deming taught methods for statistical analysis and control of quality to
Japanese engineers and executives. This can be considered the origin of TQM.
 Joseph M. Juran taught the concepts of controlling quality and managerial breakthrough.
 Armand V. Feigenbaum’s book Total Quality Control, a forerunner for the present
1950s
understanding of TQM, was published.
 Philip B. Crosby’s promotion of zero defects paved the way for quality improvement in
many companies.
 The Japanese named their approach to total quality companywide quality control. It is
around this time that the term quality management systems arises.
1968  Kaoru Ishikawa’s synthesis of the philosophy contributed to Japan’s ascendancy as a quality
leader.
 TQM is the name for the philosophy of a broad and systemic approach to managing
organizational quality.
 Quality standards such as the ISO 9000 series and quality award programs such as the
Today
Deming Prize and the Malcolm Baldrige National Quality Award specify principles and processes
that comprise TQM.
Adapted from The Certified Manager of Quality/Organizational Excellence Handbook, pages 290-291.
The first is the role management should play in a company’s quality improvement effort. Historically, poor
quality was blamed on workers — on their lack of productivity, laziness, or carelessness. However, Deming
pointed out that only 15 percent of quality problems are actually due to worker error. The remaining 85
percent are caused by processes and systems, including poor management. Deming said that it is up to
management to correct system problems and create an environment that promotes quality and enables
workers to achieve their full potential. He believed that managers should drive out any fear employees have
of identifying quality problems, and that numerical quotas should be eliminated. Proper methods should be
taught, and detecting and eliminating poor quality should be everyone’s responsibility. Deming outlined his
philosophy on quality in his famous “14 Points.” These points are principles that help guide companies in
achieving quality improvement. The principles are founded on the idea that upper management must develop
a commitment to quality and provide a system to support this commitment that involves all employees and
suppliers. Deming stressed that quality improvements cannot happen without organizational change that
comes from upper management.
After W. Edwards Deming, Dr. Joseph Juran is considered to have had the greatest impact on quality
management. Juran originally worked in the quality program at Western Electric. He became better known in
1951, after the publication of his book Quality Control Handbook. In 1954 he went to Japan to work with
manufacturers and teach classes on quality. Though his philosophy is similar to Deming’s, there are some
differences. Whereas Deming stressed the need for an organizational “transformation,” Juran believes that
implementing quality initiatives should not require such a dramatic change and that quality management
should be embedded in the organization. One of Juran’s significant contributions is his focus on the
definition of quality and the cost of quality. Juran is credited with defining quality as fitness for use rather
than simply conformance to specifications. As we have learned in this chapter, defining quality as fitness for
use takes into account customer intentions for use of the product, instead of only focusing on technical
specifications. Juran is also credited with developing the concept of cost of quality, which allows us to
measure quality in dollar terms rather than on the basis of subjective evaluations. Juran is well known for
originating the idea of the quality trilogy: quality planning, quality control, and quality improvement. The
first part of the trilogy, quality planning, is necessary so that companies identify their customers, product
requirements, and overriding business goals. Processes should be set up to ensure that the quality standards
can be met. The second part of the trilogy, quality control, stresses the regular use of statistical control
methods to ensure that quality standards are met and to identify variations from the standards. The third part
of the quality trilogy is quality improvement. According to Juran, quality improvements should be
continuous as well as breakthrough. Together with Deming, Juran stressed that to implement continuous
improvement workers need to have training in proper methods on a regular basis .
Another quality leader is Armand V. Feigenbaum, who introduced the concept of total quality control. In
his 1961 book Total Quality Control, he outlined his quality principles in 40 steps. Feigenbaum took a total
system approach to quality. He promoted the idea of a work environment where quality developments are
integrated throughout the entire organization, where management and employees have a total commitment to
improve quality, and people learn from each other’s successes. This philosophy was adapted by the Japanese
and termed “company-wide quality control”.
Phillip B. Crosby is another recognized guru in the area of TQM. He worked in the area of quality for
many years, first at Martin Marietta and then, in the 1970s, as the vice president for quality at ITT. He
developed the phrase “Do it right the first time” and the notion of zero defects, arguing that no amount of
defects should be considered acceptable. He scorned the idea that a small number of defects is a normal part
of the operating process because systems and workers are imperfect. Instead, he stressed the idea of
prevention. To promote his concepts, Crosby wrote a book titled Quality Is Free, which was published in
1979. He became famous for coining the phrase “quality is free” and for pointing out the many costs of
quality, which include not only the costs of wasted labor, equipment time, scrap, rework, and lost sales, but
also organizational costs that are hard to quantify. Crosby stressed that efforts to improve quality more than
pay for themselves because these costs are prevented. Therefore, quality is free. Like Deming and Juran,
Crosby stressed the role of management in the quality improvement effort and the use of statistical control
tools in measuring and monitoring quality.
Kaoru Ishikawa is best known for the development of quality tools called cause-and-effect diagrams,
also called fishbone or Ishikawa diagrams. These diagrams are used for quality problem solving, and we will
look at them in detail later in the chapter. He was the first quality guru to emphasize the importance of the
“internal customer,” the next person in the production process. He was also one of the first to stress the
importance of total company quality control, rather than just focusing on products and services. Dr. Ishikawa
believed that everyone in the company needed to be united with a shared vision and a common goal. He
stressed that quality initiatives should be pursued at every level of the organization and that all employees
should be involved. Dr. Ishikawa was a proponent of implementation of quality circles, which are small
teams of employees that volunteer to solve quality problems .
Dr. Genichi Taguchi is a Japanese quality expert known for his work in the area of product design. He
estimates that as much as 80 percent of all defective items are caused by poor product design. Taguchi
stresses that companies should focus their quality efforts on the design stage, as it is much cheaper and easier
to make changes during the product design stage than later during the production process. Taguchi is known
for applying a concept called design of experiment to product design. This method is an engineering
approach that is based on developing robust design, a design that results in products that can perform over a
wide range of conditions. Taguchi’s philosophy is based on the idea that it is easier to design a product that
can perform over a wide range of environmental conditions than it is to control the environmental conditions.
Taguchi has also had a large impact on today’s view of the costs of quality. He pointed out that the
traditional view of costs of conformance to specifications is incorrect, and proposed a different way to look
at these costs. Let’s briefly look at Dr. Taguchi’s view of quality costs. According to the traditional view of
conformance to specifications, losses in terms of cost occur if the product dimensions fall outside of the

specified limits. However, Dr. Taguchi noted that from the customer’s view there is little difference whether
a product falls just outside or just inside the control limits. He pointed out that there is a much greater
difference in the quality of the product between making the target and being near the control limit. He also
stated that the smaller the variation around the target, the better the quality. Based on this he proposed the
following: as conformance values move away from the target, loss increases as a quadratic function.
According to the function, smaller differences from the target result in smaller costs: the larger the
differences, the larger the cost. The Taguchi loss function has had a significant impact in changing the view
of quality cost. What characterizes TQM is the focus on identifying root causes of quality problems and
correcting them at the source, as opposed to inspecting the product after it has been made. Not only does
TQM encompass the entire organization, but it stresses that quality is customer driven. TQM attempts to
embed quality in every aspect of the organization. It is concerned with technical aspects of quality as well as
the involvement of people in quality, such as customers, company employees, and suppliers. Here we look at
the specific concepts that make up the philosophy of TQM .
The quality movement and quality systems have had many different names or terms of reference in the
past few decades, and might look like a short-lived business management trend at first glance.
Take Note
With everincreasing competition and consumer expectations, professionals

and business managers cannot ignore quality issues and expect to maintain or
improve their competitive position. Quality systems, time and again, have
been responsible for substantial increases in the bottom line of businesses in
every industry and have given organizations the boost they need to meet
overall goals and objectives. Organizations that do not accept that quality
improvement is going to be ingrained into every part of their business are not
going to be around to see what the future brings.

1. Crosby believes that organizations should prevent defects to reduce

quality cost. Give reasons for this theory.
2. Enumerate Deming’s principle of quality management.
3. Explain the relevance of Juan’s trilogy in quality management.
4. Taguchi emphasizes the importance of the society in quality
management. Explain.
5. Highlight the various believes of different quality gurus.
REFERENCES.
1. Bank J.(1992) Essence of Total Quality Management. Prentice hall (UK).
2. Crosby, P (1884). Quality Without Tears: The Art of Hassle-Free Management. New York: McGraw-
Hill.
3. Crosby P (1979). Quality is free, Mcgraw-H, New York.
4. Evans.R.et al (1999). The Management and Control of Quality. Cincinnati:USA
5. Garvin, David A. Managing Quality. New York: Free Press, 1988
6. Goetsch,et al91995). Implementing Total Quality. Upper Saddle River, N.J.: Prentice-Hall
7. Price F(1990).Right every time.Aldershot(UK)

LECTURE THREE
TOTAL QUALITY MANAGEMENT PRINCIPLES
Introduction
In this lecture, we shall deal with the fundamental rules for operating a project so that the project manager
can continually improve performance over the long term by focusing on customers while addressing the
needs of all other interested parties. The principles can also be used by management to guide organizations
for improved performance.
1. Define a quality principle.

2. Describe the various quality management principles.
3. Apply the principles in project management.
Definition of quality principle
A principle can be defined as a fundamental truth or philosophy. This truth or philosophy is what guides a
project manager in carrying out a project. Thus, a quality principle in the context of projects is the
comprehensive and fundamental rule or belief for leading and operating a project aimed at continually
improving performance over the long term by focusing on customers (persons or organizations that receive
the project and includes consumers, clients, end users and beneficiaries) while addressing the needs of all
other interested parties-- e.g. owners, employees, suppliers, shareholders, other investors, unions, partners
and society. These principles are to be found in the ISO 9001: 2015 standard. There are seven quality
management principles as developed by the ISO/TC/176 members. The principles can be used by a project
manager to guide his/her employees to improve their performance.
In the following sections, we shall deal with the seven quality management principles namely customer
focus, leadership, engagement of people, process approach, improvement, evidence – based decision making
and relationship management. Let us now examine each of the principles.
Customer Focus
This principle states that organizations depend on their customers and therefore should understand current
and future customer needs, meet customer requirements and strive to exceed customer expectations. What
this principle implies is that a project manager should put his/her energy into satisfying customers and
understanding that profitability comes from satisfying customers.
Take Note
Customers have expectations on the kind of project to be done. These

expectations are created by the market place or a dominant supplier. The
project organization should therefore keep an eye on the market or suppliers
(providers) of similar projects.
A project manager can apply this principle in various ways. The first way a project manager can use this
principle is to carry out research to establish and understand current and future customer needs and
expectations. Secondly, he/she can ensure that the objectives of the organization are linked to customer needs
and expectations. The manager can then communicate customer needs and expectations throughout the
organization. He/she can measure customer satisfaction and act on the results. The principle also helps a
project manager to systematically manage customer relationships. Finally, the principle assists a project
manager to ensure a balanced approach between satisfying customers and other interested parties.
The application of customer focus offers certain benefits to a project manager. Some of these benefits
include the following:
a) Improved customer loyalty leading to repeat business
b) Increased revenue and market share obtained through flexible and fast responses to market
opportunities and
c) Increased effectiveness in the use of resources dedicated to enhance customer satisfaction.
Leadership
This second principle holds that leaders establish the unity of purpose and direction of an organization. It
therefore expected of them to create and maintain the internal environment in which people can become fully
involved in achieving the organization's objectives (completion of the project in the expected time and within
the budget). The implication of this principle is that leadership (project manager) should provide role model
behaviours consistent with the values of the organization. Project leaders should demonstrate behaviours that
will deliver the organization’s objectives. This calls for an internal environment that is conducive for people
to work. Such environment is measured by the culture of the organization and management style, trust,
motivation and support.

Take Note
A project manager should be appointed as early as possible. The project manager is the individual
with the defined responsibility and authority for managing the project and ensuring that the project’s
quality management system is established, implemented and maintained
The principle recommends that the top management of both the originating organization and the project
organization should assume leadership in creating a culture for quality. This should include setting the
quality policy and identifying the objectives for the project, providing the infrastructure and resources to
ensure achievement of project objectives, providing an organization structure conducive to meeting project
objectives, making decisions based on data and factual information, empowering and motivating all project
personnel to improve the project processes, and planning for future preventive actions.
Leadership principle is helpful to a project manager in several ways. For example, the project manager can
use the principle to help him/her to consider the needs of all interested parties including customers, owners,
employees, suppliers, financier, local communities and society as a whole. Secondly, the principle helps a
project manager to establish a clear vision of the organization's future. It also helps in setting challenging
goals and targets. A project manager can also create and sustain shared values, fairness and ethical role
model at all levels of the organization. By utilizing leadership principle, the project manager can establish
trust and eliminate fear.
He or she can provide employees with the required resources, training and freedom to act with responsibility
and accountability. He/she can also inspire, encourage and recognize people' contributions.
Leadership principle offers certain benefits to a project manager. One of the benefits is that people get to
understand and become motivated towards the organization's goals and objectives. It is also beneficial as it
ensures that activities are evaluated, aligned and implemented in a unified manner.
Engagement of People
This is the third principle that states that people at all levels are the essence of an organization and their
involvement enables their abilities to be used for the organization’s benefit.

The implication of the principle is that involving people (workers) means sharing knowledge, encouraging
and recognizing their contribution, utilizing their experiences and operating with integrity. The principle is
relevant to a project organization in that it advocates that personnel in the project organization should have
well-defined responsibility and authority for their participation in the project. Secondly, the principle
recommends that authority delegated to the project participants should correspond to their assigned
responsibility. Thirdly, competent personnel should be assigned to the project organization. In order to
improve the performance of the project organization, appropriate tools, techniques, and methods should be
provided to the personnel to enable them to monitor and control the processes. Finally, in the case of multi-
national and multi-cultural projects, joint ventures or consortiums, the implications of cross-cultural
management should be considered. Thus, tact and sensitivity to the implications of the cross-cultural
differences is necessary.
The application of this principle ensures that
(a) People identify constraints to their performance.
(b) People evaluate their performance against personal goals and objectives.
c) People actively seek opportunities to enhance their competence, knowledge and experience
(d) People freely share knowledge and experience
(e) People openly discuss problems and issues.
The benefits that a project manager may derive from this principle are that employees understand and
become motivated towards the organization's goals and objectives. In addition, the activities are evaluated,
aligned and implemented in a unified manner.
Process Approach
The belief of this principle is that a desired result is achieved more efficiently when activities and their
related resources are managed as a process. A process is any activity or a set of activities that uses resources
to transform inputs into outputs. The project processes are therefore the activities that are necessary for
managing the project as well as those that are necessary to realize the project’s product such as planning,
organizing, monitoring, controlling, and reporting and close out.
Take Note
Processes are dynamic in that they cause things to happen

Processes within a project should be structured in order to achieve the project’s objectives in the most
efficient and effective manner. The principle recommends that project processes should be identified and
documented. The originating organization should communicate the experience gained in developing and
using its own processes or those from its other projects, to the project organization. Secondly, the project
organization should take account of this experience when establishing the project’s processes, but it may
need to establish processes that are unique to the project at hand. In this respect, the project organization
should do the following:
 Identify the appropriate processes for the project at hand.
 Identify inputs, outputs and the objectives for the project’s processes.
 Identify the process owners and establish their authority and responsibility.
 Focus on the factors e.g. resources, methods, materials that will improve key activities of the
organization
 Design the project’s processes to anticipate future processes in the life cycle of the project
 Evaluating risks, consequences and impacts of activities on customers, suppliers and other
interested parties and
 Define the interrelations and interactions among the processes.
The benefits that a project manager is likely to gain from applying this principle are:
(a) Lower costs and shorter time cycles through effective use of resources
(b) Systematically defining the necessary activities to achieve the desired result
(c) Focused and prioritized improvement opportunities
Improvement
This principle states that continual improvement of the organization’s overall performance should be a
permanent objective of the organization. This implies that continual improvement is the progressive
improvement in organizational efficiency and effectiveness. The principle recommends that the cycle of
continual improvement is based on the Plan-Do-Check-Act concept. Secondly, the originating organization
and project organization are responsible for continually seeking to improve the effectiveness and efficiency
of the processes for which they are responsible. Thirdly, managing projects should be treated as a process
rather than as an isolated task. Fourthly, a system should be put in place to record and analyze the data
gained during a project for use in a continual improvement process. Finally, self-assessments, internal audits
and external audits may be made to identify opportunities for improvement.

In applying this principle, the project manager is advised to do the following:
(a) Employ a consistent organization - wide approach to continual improvement of the organization's
tools of continual improvement
(b) Provide people (employees) with training in the methods and tools of continual improvement.
(c) Make continual improvement of products, processes and the system an objective for every individual in
the organization.
(d) Establish the goals to guide and measures to track continual improvement.
(e) Recognize and acknowledge improvements by offering rewards to the individuals who have brought
about the improvements.
It is expected that a project manager who applies this principle would get the following benefits:
(a) Performance advantage through improved organizational capabilities.
(b) Alignment of improvement activities at all levels to an organization's strategic intent.
(c) Flexibility to react quickly to opportunities.
Evidence – based Decision Making
This principle holds that effective decisions are based on the analysis of data. The implication is that
information about the project’s progress and performance should be recorded, for example, in a project log.
Thus, qualified people should draw facts from observations as the project is being executed. In applying this
principle, a project organization should:
(a) Ensure that data/information is sufficiently accurate and reliable and that it is collected by qualified
persons using qualified means of measurement.
(b) Make data accessible to those who need it.
(c) Analyzing data and information using valid methods.
(d) Making decisions and taking actions based on factual analysis, balanced with experience and intuition
(e) Performance and progress evaluations should be made at appropriate points in the project’s life cycle
(milestones) to assess the project’s status.
A project manager who utilizes this principle is expected to derive the following benefits:
(a) Making informed decisions since the decisions are based on facts.

(b) Ability to demonstrate the effectiveness of past decisions through reference to factual records.
(c) Increased ability to review, challenge and change opinions and decisions.
Relationship Management
This last principle states that an organization and its interested parties are interdependent and a mutually
beneficial relationship enhances the ability for both to create value. The implication is that beneficial
relationships are those in which both parties are knowledgeable, share vision, values and understanding. For
example, suppliers of materials are not treated as adversaries but rather as a complementary in providing
quality to the customer.
The application of this principle requires that a project manager should do the following:
(a) Understand interested parties. For example, suppliers of raw materials to the project.
(b) Identify their needs and requirements. You may need to identify the supplier’s processes and product
specifications which need to be developed jointly so that as a project manager, you benefit from that
supplier knowledge.
(c) Meet their requirements. For example, you may have to take into account the customer’s preferred
supplier of certain raw materials.
The benefits arising from the application of this principle include completion of a project within the
stipulated time period and meeting shareholder requirements.
Self – Assessment Questions
1. True or False. Quality management is the coordinated activities that

direct and control an organization with regard to quality.
2. You are involved in a project that is constructing houses for a slum

area.
(a) List three interested parties.
(b) Name three risks associated with such a project.

3. State three benefits derived from the use of evidence – based decision
making principle.
References
1. Goetsch,et al(1995). Implementing Total Quality. Upper Saddle River, N.J.: Prentice-Hall
2. Hitchings D (1990).Pursuit of quality. Pitman, London.
3. King L (1992) Quality: Total customer service.Wesly publication,chichester,(UK)
4. Mastenbrok W (1991).Managing for quality in service industry. Oxford press.
5. Price F(1990).Right every time.Aldershot(UK)
6. Townsend P(1986).Commit to quality.esl press, New York
7. Adair J (1990).Challenges of Innovation. Talbot Press,Gilford,UK
8. Ansari A (1990). Just-in- time purchasing.Mackmillan,New York
9. Juran M (1988). Quality control hand book.MacGraw –Hill, New York

LECTURE FOUR.
TQM FOR STRATEGIC PLANNING, STRATEGIC QUALITY PLANNING
Introduction.
This lecture will expose the learned to meaning of a strategy, types of quality statement used in quality
management and the process an organization should follow in its strategic quality planning process.
1. Define a strategy.
2. State the various types of quality statements.
3. Describe the process of strategic quality panning.
Define the term strategy.
Strategy is an action that managers take to attain one or more of the organization’s goals. Strategy can also
be defined as “A general direction set for the company and its various components to achieve a desired state
in the future. Strategy results from the detailed strategic planning process”.
A strategy is all about integrating organizational activities and utilizing and allocating the scarce resources
within the organizational environment so as to meet the present objectives. While planning a strategy it is
essential to consider that decisions are not taken in a vacuum and that any act taken by a firm is likely to be
met by a reaction from those affected, competitors, customers, employees or suppliers.

Strategy can also be defined as knowledge of the goals, the uncertainty of events and the need to take into
consideration the likely or actual behavior of others. Strategy is the blueprint of decisions in an organization
that shows its objectives and goals, reduces the key policies, and plans for achieving these goals, and defines
the business the company is to carry on, the type of economic and human organization it wants to be, and the
contribution it plans to make to its shareholders, customers and society at large.
Features of Strategy of a good strategy.
1. Strategy is Significant because it is not possible to foresee the future. Without a perfect foresight, the
firms must be ready to deal with the uncertain events which constitute the business environment.
2. Strategy deals with long term developments rather than routine operations, i.e. it deals with
probability of innovations or new products, new methods of productions, or new markets to be
developed in future.
3. Strategy is created to take into account the probable behavior of customers and competitors.
Strategies dealing with employees will predict the employee behavior.
Strategy is a well-defined roadmap of an organization. It defines the overall mission, vision and direction
of an organization. The objective of a strategy is to maximize an organization’s strengths and to minimize
the strengths of the competitors.
Strategy, in short, bridges the gap between “where we as an organization are” and “where we want to be”.so
a strategy can be said to be:
1. The science and art of using all the forces of a nation to execute approved plans as effectively as possible during peace or war.
The science and art of military command as applied to the overall planning and conduct of large-scale combat operations.
2. A plan of action resulting from strategy or intended to accomplish a specific goal.
3. The art or skill of using stratagems in endeavors such as politics and business.
Strategic Quality Planning

Strategic quality planning (SQP) is a systematic approach to defining long-term business goals, including
goals to improve quality and the means (i.e., the plans) to achieve them.

Strategic Quality Planning SQP elements are; competitive edge, Customer positioning, customer
satisfaction, customer value, customer needs, definition, differentiation, mission statement, quality
planning, quality policy, strategic planning, strategy, TQM and Strategic Planning, vision statement.
Components of a Strategy Statement
The strategy statement of a firm sets the firm’s long-term strategic direction and broad policy directions. It
gives the firm a clear sense of direction and a blueprint for the firm’s activities for the upcoming years. The
main components of a strategic statement are as follows:
1. Strategic Intent
An organization’s strategic intent is the purpose that it exists and why it will continue to exist,
providing it maintains a competitive advantage. Strategic intent gives a picture about what an
organization must get into immediately in order to achieve the company’s vision. It motivates the
people. It clarifies the vision of the vision of the company.
2. Mission Statement
Mission statement is the statement of the role by which an organization intends to serve its
stakeholders. It describes why an organization is operating and thus provides a framework within
which strategies are formulated. It describes what the organization does (i.e., present capabilities),
who all it serves (i.e., stakeholders) and what makes an organization unique (i.e., reason for
existence)
Features of a Mission
a. Mission must be feasible and attainable. It should be possible to achieve it.

b. Mission should be clear enough so that any action can be taken.
c. It should be inspiring for the management, staff and society at large.
d. It should be precise enough, i.e., it should be neither too broad nor too narrow.
e. It should be unique and distinctive to leave an impact in everyone’s mind.
f. It should be analytical, i.e., it should analyze the key components of the strategy.
g. It should be credible, i.e., all stakeholders should be able to believe it.
3. Vision

A vision statement identifies where the organization wants or intends to be in future or where it
should be to best meet the needs of the stakeholders. It describes dreams and aspirations for future.
An effective vision statement must have following features-
a. It must be unambiguous.
b. It must be clear.
c. It must harmonize with organization’s culture and values.
d. The dreams and aspirations must be rational/realistic.
e. Vision statements should be shorter so that they are easier to memorize.
Take Note
In order to realize the vision, it must be deeply instilled in the organization,

being owned and shared by everyone involved in the organization
4. Goals and Objectives
A goal is a desired future state or objective that an organization tries to achieve. Goals specify in
particular what must be done if an organization is to attain mission or vision. Goals make mission
more prominent and concrete. They co-ordinate and integrate various functional and departmental
areas in an organization.
Effective goals have following features
a. These are precise and measurable.

b. These look after critical and significant issues.
c. These are realistic and challenging.
d. These must be achieved within a specific time frame.
e. These include both financial as well as non-financial components.

Objectives are defined as goals that organization wants to achieve over a period of time. These are
the foundation of planning. Policies are developed in an organization so as to achieve these
objectives. Formulation of objectives is the task of top level management. Effective objectives have
following features-
a. These are not single for an organization, but multiple.

b. Objectives should be both short-term as well as long-term.
c. Objectives must respond and react to changes in environment, i.e., they must be flexible.
d. These must be feasible, realistic and operational.
What is the relationship between of Strategic Planning and Total Quality Management?
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.
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. Vision statement
2. Mission statement
3. Quality policy statement
The utilization of these statements varies from organization to organization. Small organization may use only the quality policy
statement

1. 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.
Successful visions are timeless, inspirational, and become deeply shared within the organization, such as:
 IBM’s Service
 Apple’s Computing for the masses
 Disney theme park’s the happiest place on the earth, and
 Polaroid’s instant photography
2. 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.
3. 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:
Providing our external and internal customers with innovative products and services that fully satisfy their requirements. Quality
is the job of every employee.
How an organization can do strategic quality planning?

The process starts with the principles that quality and customer satisfaction are the center of an organization’s 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. Discover customer needs

2. Customer positioning
3. Predict the future
4. Gap analysis
5. Closing the gap
6. Alignment
7. Implementation
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: 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 organization’s needs to concentrate its efforts on areas of excellence.
3. 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.
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.
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. Strategic Quality
Planning
The Strategic Quality Planning Process
The Strategic Quality Planning process consists of two phases;

1. The Strategy Phase which includes all of the steps required to develop the strategic quality
plan.
2. Research Phase
a) Review the Organizational Strategic Plan
Every quality management initiative can, and must be tied to key business process performance
indicators in order to have any real impact on productivity and the bottom-line. However,
Strategic Plans are rarely translated into the quality strategies needed to ensure overall
performance improvement gains.
The first task of the Strategic Quality Planning team is to examine the Strategic Plan and to identify and
become familiar with all of the identified corporate strategies. They must ensure the quality strategies they
develop align with and support the realization of these corporate strategies.
b) Identify the Organizational Quality Initiatives

The Strategic Quality Planning team will spend time analyzing all of the various quality
initiatives that their organization has used in the past as well as continuing to use in the present.
For example, has the organization used or continuing to use Kaizen? Reengineering? Cost of
Quality? Quality Function Deployment? Six Sigma? Lean? Quality Awards? (Such as Canada
Awards for Excellence, They will often find, through this analysis, that some quality initiatives
were abandoned because it was the wrong time, the wrong culture, the wrong expectations and so
on. It may have had nothing to do with the actual quality initiative. Therefore they may want to
consider using them again. Just because there is a lot of literature on a particular quality endeavor
doesn’t mean that it or isn’t right for them.
c) Understand the Voice of the Customer
Organizational and customer requirements are the factors that will drive Strategic Quality Plans.

The quality strategies must address the organizational needs. They must also address the customer
needs. The Strategic Quality Planning process ensures these two are aligned.
Customer satisfaction results can be used to identify problems and opportunities, measure the performance of
managers, executives and employees and reveal relative competitive performance. These can be obtained
through customer surveys, interviews, etc. The results will help drive the right Quality Strategies which will
in turn help drive new product and service development, manufacturing quality, product and service delivery
and competitive positioning.
Take Note
Customer satisfaction levels are impossible to assess unless customer’s

expectations, priorities and needs have been determined. That is why this
Voice of the Customer process is so critical.
d) They Engage Employees through Feedback.

It is essential to involve employees in the development of the quality strategies. Employee’s input
will:
Provide insight into issues, challenges, concerns, and opportunities which may not have been
known.
Ensure their “buy-in” during the Strategic Implementation Stage which will link the Quality
Strategy Development into Action Plans.
e) Conduct Benchmarking
We often miss the opportunity to go outside our organization to learn what others are doing so
that we can incorporate these lessons learned into the development of our quality strategies.
Benchmarking is highly beneficial and helps provide the Strategic Quality Planning team with
ideas on how to improve their internal quality processes, products, processes, structures, etc.
Strategy Phase
a) Create the Quality Vision

Creating a compelling vision of quality and developing the strategies to achieve it is one of the
Strategic Quality Planning team’s most difficult challenges. In this complex and ever-changing
world, anticipating the future can be very difficult. The problems of organizations are increasingly
complex. There are so many ironies, polarities, dichotomies, dualities, ambivalence, paradoxes,
confusions, contradictions, contraries and messes for organizations to understand and deal with. This
complexity explains why many Strategic Quality Planning teams are more comfortable focusing on
clear, short-term goals than on uncertain, long-term visions.
But failing to anticipate the organization’s and its customer’s future needs could put you at risk of losing
business to competitors who do anticipate these needs and are able to fulfill them. The team must understand
both present needs and future considerations so that they can position their organization, through the
implementation of appropriate quality strategies, to fulfill those needs. This is why the understanding of
customers and employee’s needs, wants and desires is so critical to understand before a vision can be
created. The Benchmarking will have provided ideas on what the “best of the best” have done which will
help shape the future for your organization and department.
b) Develop the Quality Policy

The “ideal future” has been created through the visioning process. Before moving directly into the
development of the Quality Strategies, the Strategic Quality Planning team will develop and/or
update their Quality Policy. This policy will clarify the overall goal, mandate, objective, etc. for
quality.
The quality policy should be a brief statement that shows a commitment to quality. One reason for creating
and deploying a quality policy for the organization is to ensure that all employees are aware of, aligned with
and support the organization’s intent with regard to quality management.
c) Identify the Quality Strategies

The quality policy should be a brief statement that shows a commitment to quality. One reason for
creating and deploying a quality policy for the organization is to ensure that all employees are aware
of, aligned with and support the organization’s intent with regard to quality management.
d) Develop the Operational Effectiveness Plan
The Operational Effectiveness Plan starts with the development of Objectives required to meet each
Quality Strategy. It follows with the development of detailed Action Plans required to meet these
objectives. Performance measures will be added to ensure that it is clear when each strategy and
related objective has been met.

Summary
The Strategic Quality Planning process will move your organization from
making assumptions about quality towards the clear quality directions
founded on well researched quality strategies. This in turn will take your
organization successfully into the future.
PROJECT DESIGN - STEP 1: IDENTIFICATION, SITUATIONAL ANALYSIS
STEP 1 – Project identification
The first step in the design phase (Phase 1 of the PCM cycle) is the identification of your project.
The methodology used is called situation analysis. It consists of a series of tools that allow you to develop your
project idea. It is the most important component of the project cycle because it facilitates the anchoring of the
project activities to needs and priorities of the target group.
At the same time, it is crucial to conduct it in the wider framework of beneficiaries’ priorities and the
programme to which the project aims to contribute in the long term. Analyzing the situation in the framework of
international, national and local priorities:
• helps to identify the nature and magnitude of needs, prioritize them and establish the first criteria for
developing the project idea;
• can be used by the project team as an institutional reference and starting point for the specific project’s
situation analysis;
• helps to map the relationships among all those involved and to create a sense of ownership of the project and
its future development;
• improves the whole project proposal in terms of sustainability, and emphasizes how the project is part of a

wider strategy.
Several tools exist for a situation analysis. To prepare a results-based project, the following will have to be
done:
1. Stakeholder analysis and target group selection
2. Problem analysis
3. Objective analysis
4. Alternative selection.
The order in which to conduct the analysis will vary in line with the situation and the project.
Indeed, stakeholder analysis and problem analysis are closely connected. People’s views on a problem are
essential to understanding its nature and possible solutions. In most cases, an organization already has a broad
idea of the problem they want to tackle through a specific project. A project can also be a way to implement part
of a development strategy, or be part of a business plan. We therefore suggest that you start your situation
analysis once you have set out the core problem. This problem could later be formulated better, during the
problem analysis stage. Moreover, certain aspects of the situation analysis (e.g. the stakeholder analysis) need to
be revised once the project has been approved but before getting into the real implementation phase, in case the
project’s conditions change.
Conducting a stakeholder analysis and selecting your target group.
Starting the project design by analyzing the stakeholders and their context helps ensure that the project is
adapted to the organizations’ needs and capacities. But in many cases it is useful to start with the problem in
order to identify all the stakeholders concerned.
The focus of a results-based project is the target group. Since the project also aims at achieving sustain-
ability, in addition to the target group, other players have to be considered at this stage, by understanding
their potential role in the project and their interests and expectations in terms of benefits. Right at the
beginning, it is therefore necessary to identify all the stakeholders likely to be affected (either positively or
negatively) by the project and analyze their potential involvement in it. The stakeholders are “not only the
people and institutions that carry out the project, but also those structures and organizations that play a role
in the project environment”.
Methodology
The first action in the project design process, people in charge of the project design can get organized into
a group. This group is usually chosen when the first project idea emerges and – if implementation is
confirmed – it could support the identification of the project team (including members of the design team).
The main task of the project team is to coordinate the whole process and the project implementation. This
does not mean that they are alone in carrying out the activities, but that they are accountable for them.
In the ideal case, the project should be designed using participatory planning methods which actively
involve the organisation members. For instance, a project design workshop combined with a series of
brainstorming sessions, individual meetings, focus group discussions are very useful. Indeed, one single
workshop often facilitates the prevailing of dominant positions, based on power, leadership and influence,
whereas small group discussions allow better reflection, better participation by women and more inclusive
plans, and generate stronger ownership by the members. In some cases, the capacities of less experienced
stakeholders need to be reinforced. In other cases, stakeholders may abuse their power, and stakeholders
might not be allowed to speak freely in front of them. This can also be due to a lack of capacity in
participatory and inter-active methods.
Although in practice this variety of participation and ownership rarely happens, due to many different
factors, in the case of organisations, the team can build on consultation and management processes within the
organization’s governing mechanisms (such as for instance the general assembly, supervisory and working
committees) The project team must bear in mind that there is a direct relationship
between participation and sustainability, and should be aware of the risks of exclusive processes.
A series of tools exist for identifying and analyzing the different stakeholders. These tools will be presented
during the training.
Selecting the target group (direct recipients and ultimate beneficiaries)
The target group is a group of people who will benefit from the project. Within the stakeholder analysis, the
target group analysis is of particular relevance and requires special attention.
In most projects, organizations will not deliver direct services to persons, but run services that build the
capacities of organizations so they can provide new or better services to a certain group of people. We
therefore need to distinguish between the direct recipients of project outputs or services and the ultimate
beneficiaries.
The direct recipients are those who are directly affected by the core problem, and who will benefit
from the project outputs and services. The ultimate beneficiaries are those who will benefit from the
project in the long term. During project design, it is particularly important to assess the capacity of the

direct recipients carefully: are they really committed, do they have the resources (time, staff, etc.) to
participate in the project, and do they have the capacity to play their role in the project? Building up the
capacity of the target groups is crucial not only to achieving the project’s objectives and outputs, but also to
ensuring that the benefits are sustained once the project ends.
Target group:
Those benefiting from the project. You can distinguish between:
- direct recipients (or direct beneficiaries): the group/institutions who will be directly affected by the
project at the level of the outputs, e.g. primary organisation, a union or federation;
- ultimate beneficiaries: those who benefit from the project’s development objective (such as local food
security) in the long term, e.g. family of the organisation members, consumers and clients of products and
services provided by the organisation.
Project partners:
Support and participate in the design and implementation of the project. They can be part of the project’s
Steering Committee, e.g. Ministries, organisation apex body, trade unions, employers’ organizations, support
agencies.
Analysing the target group: a SWOT analysis
As a parallel process in the analysis of the situation, a self-diagnosis of the capacity of the direct
recipient to carry out the proposed project needs to be done through the analysis of the organisation’s or
support organization’s strengths and weaknesses, as well as the opportunities and threats in the external
environment (a SWOT analysis). The SWOT analysis is a powerful tool for carrying out a diagnosis of the
target group. It can be used to complement and enrich the stakeholder analysis.
A SWOT analysis examines both the internal and the external situation of the target group and partners.
Therefore it is particularly useful in projects where the target group’s capacities might have a big influence
on the achievement of the objectives, or when there are external elements in the context of the target group’s
capacities that can affect the project.
In a nutshell, a SWOT analysis can reveal the capacity of the target group and the implementation partners to
perform their roles, as well as their comparative advantages. It can also show hidden obstacles to a potential
project.

Strengths and weaknesses
Strengths and weaknesses are internal features of the target group that facilitate or hinder its ability to
achieve certain results. Strengths and weaknesses are always relative to a certain goal. Therefore, when used
for internal analysis of the applicant and partners, strengths and weaknesses analysis must concentrate on
those features that can be positive or negative for participating in the project and providing and sustaining
quality services to the target group.
Take Note
When the SWOT analysis highlights a lack of capacities on the part of the
applicant to perform all the activities listed in the project, the organization
must find other partners among the stakeholders who can fill the capacity
gaps.
Strengths and weaknesses can be modified to some extent by the project. Project designers should include
measures to consolidate the key strengths and overcome critical weaknesses of the stakeholders, particularly
ones that could compromise the sustainability of the project results. A good project strategy takes as much
advantage as possible of stakeholders’ strengths. It is also important to take measures to neutralize the impact
of weaknesses.
Opportunities and threats

Threats and opportunities are factors in the context outside the target group that can trigger events which
affect the organization’s ability to achieve certain results. Unlike strengths and weaknesses, threats and
opportunities cannot be manipulated, since they are beyond the control of the organization. What the
organization can do is develop strategies to maximize its ability to take advantage of the opportunities and to
minimize any impact of the threats.
Threats and opportunities are identified during project design. In this way, the project strategy can include
measures to benefit from the opportunities. In addition, the strategy can include preventive action to lessen
the negative effects of threats. Such measures would help to bring the negative effects down to an acceptable
level at which the success of the project is not compromised.
The problem
Every project aims to help solve a problem that affects the target group or groups.
The problem analysis identifies the negative aspects of an existing situation and establishes the “cause and
effect” relationships among the problems that exist. The core problem of the target group must be clearly
identified. It is essential to understand the root causes of the problem and the effects the problem has on the
beneficiaries. This can be represented diagrammatically by constructing a problem tree. The causes are
structured by clustering similar ones and by developing a hierarchy of causes.
The problem tree has three different components:
The core problem
The core problem must be the starting point for every project. It provides the rationale and gives it meaning,
in that it aims to make a significant contribution to solving a relevant problem for the target group. If the
starting point for the project is a detected opportunity, then it is still important to identify the main problem
(or challenge) hindering the desired situation from becoming reality. So, regardless of our initial positive or
negative considerations when looking at the existing situation, we will always end up identifying the core
problem (or challenge) to tackle.
Building the problem tree

Key actions in building a problem tree:
1) Organise a participatory workshop, discussions and meetings with the target group and all the relevant
stakeholders, paying particular attention to the ability of different groups (e.g. women or youth) to participate
and voice their issues.
2) Starting with the core problem the project team identified at the beginning of the situation analysis,
openly brainstorm on problems and their causes which stakeholders consider to be a priority. Each
participant could write a problem on a card. All the problems will then be posted on a wall or flipchart.
3) Use the problems identified through the brainstorming exercise to reformulate the core problem and then
begin to establish a hierarchy of causes and effects, as illustrated in The Diagram:

4) All other identified problems are sorted in the same way. The guiding question is “WHY?” More causes
can be added
5) Connect the problems with cause-effect arrows
6) Look at the problem tree and verify its cause-effect links ù
Source: European Commission, 2004, Aid Delivery Methods, Volume 1 : Project cycle management
guidelines, EC, Brussels
The exercise of building a problem tree is important as it is an opportunity to discuss openly the problems to
address with all the stakeholders, whilst it is also a learning process.
During the process, remember that not everyone will necessarily feel able to express openly the problems
they have identified. This may be because they feel it may affect their relationships with others or because
they are not used to speaking out in large groups. For example, gender issues might be seen as difficult to
discuss in a large group even if they are affecting the business success of the organisation. In some cases, it
may therefore be useful to set up smaller groups to brainstorm problems. The membership of these groups
might be limited to one stakeholder group, e.g. women members or management board members. It is
therefore important to determine whether the different groups of people perceive the problem in the same
way.
Interviews and anonymous questionnaires may also be used to collect additional points of view. Although
these techniques do not promote open dialogue and active participation, they provide additional data that
might otherwise be inaccessible.
The product of the problem analysis workshop will be a simplified version of the reality without trying to
explain all the complexity of the problems. It is a summary of the existing negative situation. It is the most
important stage of the project design because it will be the basis of the subsequent analysis and decision-
making on the project priorities.
Problems need to be stated as a subject, a verb and an object of the verb. They should not be stated as a
lack of something because this presupposes the solution.
When formulating the problems, it is important to avoid:
• vague concepts such as “lack of infrastructure”: we should specify the type of infrastructure (feeder road,
electricity network, school buildings) and the geographical place;

• interpretation of problems: “too much bureaucracy in local government”: we should specify whether it is a
problem of delays, of adequate support, of computerized system, etc.;
• absence of a solution, such as “lack of money so young people cannot get vocational training”: we should
analyses why they cannot get access to training: “fees are not affordable”
1. Describe the role of SWOT and Situational analysis

in strategic quality planning.
2. Explain the use of “a problem tree” in strategic

quality planning
3. Describe the process of strategic quality planning.
4. Explain the three main types of quality statements
REFERENCES
1. Ansari A( 9190).Just-in time purchasing.Mackmillan ,New York
2. Crosby P (1979). Quality is free, McGraw-H, New York.
3. Evans.R.et al (1999). The Management and Control of Quality. Cincinnati:USA
5. Harrison A (1992).Just-in- time manufacturing.Eaglewood,USA
6. Juran J (1980).Quality planning and analysis.MacGraw-Hill,New York
7. Muhlemann A et al (1992) Production and operation management. Pitman ,London

LECTURE FIVE
CONTINUOUS IMPROVEMENT STRATEGIES
Introduction
This lecture is on the various types of improvement strategies that a project manager can employ to
ensure that the project is delivered on time and within the budget. Some of the strategies aim at
controlling the project in order to stay on course while others are to prevent the occurrence of non –
conforming within the project. The presentation does not specify which strategies are for prevention
or control. However, a closer look of each of the strategies can inform you which strategy aims at.
1. Differentiate between continuous improvements strategies from

continual improvement strategy.
2. Describe the procedure for benchmarking
3. Explain the PDCA cycle
Definitions of terms
8. Continuous improvement strategy refers to those efforts aimed at enhancing an organization’s

ability to meet customers’ demands. It therefore deals with those activities that seek to focus
on linear incremental improvements within an existing process. These activities can seek
“incremental” improvements over time or “breakthrough” improvement all at once.
Continuous improvement is a subset of continual improvement. Continual improvement
strategy Crosby believes that organizations should prevent defects to reduce quality cost. Give
reasons for this theory.
9. Enumerate Deming’s principle of quality management.
10. Explain the relevance of Juan’s trilogy in quality management.
11. Taguchi emphasizes the importance of the society in quality management. Explain.
12. Highlight the various believes of different quality gurus.

is regarded as the everyday activities executed by a company in order to enhance its ability to meet
customers’ demands. Whereas continuous improvement strategy is the everyday activity undertaken to
enhance customer demand, continual improvement strategy refers to those activities carried out at specific
times after a certain period to satisfy the requirements of customers. Continual improvement strategy is
achieved by carrying out internal audits, performing management reviews, analyzing data, and implementing
corrective and preventive actions. Specifically, it is the ability to continuously minimize waste, reduce
response time, simplify the design (of both products/service and processes) and improve quality in order to
meet customer’s needs and wants more proficiently. This is usually done after the project manager has
analyzed data or after an internal audit has been conducted and has revealed that there are certain non-
conformities with the project. The aim therefore is to eliminate or minimize the occurrence of such non-
conformities the next time a similar project is carried out.
Having now differentiated the terms lets us now examine the strategies that a project manager can use to
improve on how he/she executes projects. However, before looking at these strategies, there are certain
questions that a project manger needs to ask. According to Suganthi and Anand (2004), the following
questions should be answered before the implementation of an improvement strategy. These questions are:
 What do the customers require? The project manager must understand how he/she is going to
ensure that output (product or service) is going to meet customer requirements.
 What is the product or service? The project manager must think about the product attributes
(inherent characteristics) that are to be built in the product or service in order to satisfy customer
needs.
 How can he/she generate the product or provide the service? This requires the project manager to
consider the process (es) to be used to provide the product or service.
 What creative improvements should be made? What is the best way to implement the
improvements? Creative improvements must be defined in terms of increased customer as a result
of higher quality products and services. Improvements can be noticed through the following
indicators:
(a) Reduction in the resources used in the production of a product or provision of a service. A
process that uses more resources than necessary is wasteful. For example, reports that are
distributed to more people than necessary wastes copying and distribution time, paper and file
space.

(b) Reduction in errors made by the service provider. Errors are an indication of poor
workmanship and require redoing. An example is a typing error detected after the compute
print; it will require making the corrections (rework) and printing the revised copy.
(c) Meeting or exceeding expectations of downstream customers. This improves the process.
(d) Making a process safer. A safer workplace is a more productive one with fewer lost time due
to accidents and less workers’ compensation claims.
(e) Making the process more satisfying to the employee. A change in the equipment or furniture
can make a substantial change in a person’s attitude towards the work he/she is doing. For
example, an ergonomically correct chair may change the worker’s attitude to like the work
even more.
The improvement strategies that can be used are as follows.
DEMMING WHEEL
This method was suggested by the quality guru Edward Deming. He introduced the Deming cycle which was
one of the crucial quality control tools for assuring continual improvement. Stressing on the importance of
constant interaction among the four stages; design, production, sales and research in order for a company to
arrive at better quality that satisfied customers. Later this concept was extended to all phases of management
and modified as PDCA. PDCA stands for Plan, Do, Check and Act. (Charantimath, 2006)
Diagrammatic illustration of the model is as below.
ACT PLAN
NERVER ENDING IMPROVEMENT

CHECK DO
Figure 6: Diagrammatic representation of PDCA
The plan stages involve selection of a process that needs improvement, document the selected process, set
qualitative goals for improvement and discuss various ways to achieve the goals.
The Do stage involves implementation of the plans and to monitor the progress.
Third stage is Check. Here the team analyses the data collected during the ‘Do’ stage to find out how closely
the results correspond to the goals in the ‘plan’ stage.
The final stage is to Act. If the results are successful, the team documents the revised process so that it
becomes the standard procedure for all who my use it.
1.2.5 ZERO DEFECTS

Zero Defects, pioneered by Philip Crosby, is a business practice which aims to reduce and minimize the
number of defects and errors in a process and to do things right the first time. The ultimate aim will be to
reduce the level of defects to zero.
A focus on zero defects however may be stifling to a discussion of continuous improvement, and may lead to
frustration and non-productivity. To the general workforce, it may be a demoralizing concept. While
everyone understands that continuous defect reduction is critical and necessary, most people understand,
intuitively at least, that true zero is unachievable. Always striving for an unachievable goal may eventually
de-motivate even the most optimistic of employees, particularly if they are frequently told that their defect
level is unacceptable – because it is not zero.
Advantages
Cost reduction caused by a decrease in waste.
Increased customer satisfaction, improved customer retention and increased profitability as a result of
conforming to consumer requirements
Building and delivering a finished article that conforms to consumer requirements at all times will result in
increased customer satisfaction, improved customer retention and increased profitability.
Possible to measure the cost of quality
Disadvantages
A process can be over engineered by an organization in its efforts to create zero defects. Whilst endeavoring
to create a situation of zero defects increasing time and expense may be spent in an attempt to build the
perfect process that delivers the perfect finished product, which in reality may not be possible. For example,
a consumer requirement may be a desire to buy a motor car that is 100% reliable never rusts and maximizes
fuel consumption. However, in this instance, in practice, if an organization doesn’t have some kind of built in
obsolescence it will have a more limited life.
Since the slogan zero defects implies immediate compliance to a defect-free standard, it may not leave time
for the continuous improvement process to occur. In fact, it may even slow down the continuous
improvement process because of the massive resources that inspected-in quality entails.
Take Note
The concept of continuous improvement is intuitive. It makes sense to

always strive for a better process or product, to reduce costs, satisfy
customers and gain market share. Absolute perfection can never be
achieved, but an organization can move closer and closer with good
statistical and engineering practices.
A logical strategy is to employ continuous improvement methodologies everywhere in the business and
manufacturing process to improve quality and yield, and reduce cycle time and costs. Then, at the point of
shipping the final product to the final customer, employ a zero escapes methodology to help ensure that a
randomly defective unit does not reach its final application.
The concept of continuous improvement is intuitive. It makes sense to always strive for a better process or
product, to reduce costs, satisfy customers and gain market share. Absolute perfection can never be achieved,
but an organization can move closer and closer with good statistical and engineering practices.
Explain the meaning of benchmarking then describe the procedure for benchmarking
Benchmarking
What is benchmarking?

Benchmarking is the process of identifying "best practice" in relation to both products (including) and the
processes by which those products are created and delivered. The search for "best practice" can take place
both inside a particular industry, and also in other industries (for example - are there lessons to be learned
from other industries?).
Benchmarking is a systematic method by which organizations can measure themselves against the best
industry practices.
Benchmarking is a systematic search for the best practices, innovative ideas, and highly effective operating
procedures.
The objective of benchmarking is to understand and evaluate the current position of a business or
organization in relation to "best practice" and to identify areas and means of performance improvement.
The Benchmarking Process
Benchmarking involves looking outward (outside a particular business, organization, industry, region or
country) to examine how others achieve their performance levels and to understand the processes they use. In
this way benchmarking helps explain the processes behind excellent performance. When the lessons learnt
from a benchmarking exercise are applied appropriately, they facilitate improved performance in critical
functions within an organization or in key areas of the business environment.
Application of benchmarking involves four key steps:
(1) Understand in detail existing business processes
(2) Analyse the business processes of others
(3) Compare own business performance with that of others analyzed
(4) Implement the steps necessary to close the performance gap
Benchmarking should not be considered a one-off exercise. To be effective, it must become an ongoing,
integral part of an ongoing improvement process with the goal of keeping abreast of ever-improving best
practice.
TYPES OF BENCHMARKING
There are a number of different types of benchmarking, as summarised below:
1. Strategic Benchmarking
Description
 Where businesses need to improve overall performance by examining the long-term strategies and
general approaches that have enabled high-performers to succeed.
 It involves considering high level aspects such as core competencies, developing new products and
services and improving capabilities for dealing with changes in the external environment.
 Changes resulting from this type of benchmarking may be difficult to implement and take a long time
to materialize
Most Appropriate for the Following Purposes
 Re-aligning business strategies that have become inappropriate
2. Performance Or Competitive Benchmarking
Description
 Businesses consider their position in relation to performance characteristics of key products and
services.
 Benchmarking partners are drawn from the same sector.
 This type of analysis is often undertaken through trade associations or third parties to protect
confidentiality.
 Assessing relative level of performance in key areas or activities in comparison with others in the
same sector and finding ways of closing gaps in performance
3. Process Benchmarking
Description
 Focuses on improving specific critical processes and operations.
 Benchmarking partners are sought from best practice organisations that perform similar work or
deliver similar services.
 Process benchmarking invariably involves producing process maps to facilitate comparison and
analysis.
 This type of benchmarking often results in short term benefits.
 Achieving improvements in key processes to obtain quick benefits
4. Functional Benchmarking
Description
 Businesses look to benchmark with partners drawn from different business sectors or areas of activity
to find ways of improving similar functions or work processes.
 This sort of benchmarking can lead to innovation and dramatic improvements.
Improving activities or services for which counterparts do
5. Internal Benchmarking
Description
Involves benchmarking businesses or operations from within the same organisation (e.g. business units in
different countries).
 The main advantages of internal benchmarking are:-
 that access to sensitive data and information is easier; standardised data is often readily available;
 , usually less time and resources are needed.

There may be fewer barriers to implementation as practices may be relatively easy to transfer across the
same organisation. However, real innovation may be lacking and best in class performance is more likely to
be found through external benchmarking.
Several business units within the same organisation exemplify good practice and management want to spread
this expertise quickly, throughout the organisation
6. External Benchmarking
 Involves analysing outside organisations that are known to be best in class.
 External benchmarking provides opportunities of learning from those who are at the "leading edge".
 This type of benchmarking can take up significant time and resource to ensure the comparability of
data and information, the credibility of the findings and the development of sound recommendations.
 Where examples of good practices can be found in other organisations and there is a lack of good
practices within internal business units
7. International Benchmarking
 Best practitioners are identified and analysed elsewhere in the world, perhaps because there are too
few benchmarking partners within the same country to produce valid results.
 Globalisation and advances in information technology are increasing opportunities for international
projects.
 However, these can take more time and resources to set up and implement and the results may need
careful analysis due to national differences

 Where the aim is to achieve world class status or simply because there are insufficient"national"
businesses against which
1. Describe the concept of continuous improvement
2. Enumerate the pro and cons of continuous improvement in an

organization
3. Explain the role of zero defect philosophy in continuous

improvement
References.
1. Camp R (1989).Bench marking.Milwaukee,USA

2. Dales B(1991). Quality improvement through standatrds.Mackmillan,, New York.
3. Dixon R (190). The new performance challenge.Homewood,USA
5. Hall t(1992).The quality manual .Chichester,UK
8. Rothery B(1991). ISO 9000..Gower,UK
9. Stebbing l(1989).Quality assurance. Chichester,UK
10. Zari M (1992).TQM-based performance .Letchworth,Uk

LECTURE EIGHT
QUALITY MANAGEMENT ROAD MAP
Introduction
This lecture will expose the learner to the meaning of a quality management system, the development of a
quality management system, the roadmap to the culture of quality management, managing change to build a
culture of quality and the Organizational Requirements for a Quality Management System.
1. Define a quality management system
2. Describe the Steps in the Change Management Process.

3. Explain the principal element for a successful quality management
system is managerial commitment.
Development of a quality Management system.
Change management
Change management involves the selection of strategies to facilitate the transition of individuals, teams, or
organizations from a current state of operation to the new, desired state. More specifically, it involves a
process and set of techniques to manage the feelings, perceptions, and reactions of the people affected by the
change being introduced. The impetus of any organizational change initiative is to improve some aspect of
operations or longer term outcomes. Change projects result in new policies, processes, protocols, or systems
to which staff must become accustomed, and change management is used to facilitate the transition.
Culture of Quality and Change Management

Change management is essential to sustaining a culture of quality. Quality improvement (QI) is about
designing system and process changes that lead to operational improvements, and an organizational culture
of quality is one in which concepts of quality are ingrained in organizational values, goals, practices, and
processes. In the context of quality, change could be something as discrete as a revised contracts approval
process resulting from a QI project, or it could be something as transformational as a complete shift to an
organizational strategy and culture that embraces quality. In both cases, structural and process changes are
introduced and change management is key to facilitate employee transition to the new state.
The Process and Human Sides of Change

For successful organizational change, attention must be given to both the “process” and “human” sides of
change. The “process” side involves the specific project management related activities required for moving
from the current to desired state (e.g., develop plans, build the infrastructure, change processes or systems,
redefine job roles). In the example of a revised contracts approval process, the “process” side of change may
involve budgeting for new technology, a revised contracting process map, or redefined employee
responsibilities. The “human” side of change involves strategies to help employees impacted by the change
understand and adopt it as a part of their jobs (e.g., alleviate staff resistance, meet training needs, secure buy-
in). In the contracting example, employees engaged in any aspect of contracting must understand the urgency
for a revised process, have input into the new process, and be trained in the new process.
The Roadmap to a Culture of Quality management.

Quality improvement starts by looking at the defects in an organizations products and the cause
of the defects.
What leads to these significant quality defects? Here are three examples:
 Failing to Follow Instructions. At an automotive OEM, superiors and forepersons frequently

considered simple operating instructions to be secondary to the work at hand. Management only
addressed the quality issue when significant quality problems arose, leading to increasing costs to
remedy those problems.
 Pushing for Innovation over Quality. A consumer electronics company focused almost exclusively
on securing innovations within the shortest possible development time. Leaders offered incentives to
R&D employees, but there were no rewards for ensuring sustainable quality. As a result, people

would push products to their limits for the sake of innovation, incurring risks without really
understanding them. Systematic risk assessments were severely lacking, and the result was a growing
number of complaints and a drastic rise in warranty costs.
 Solving Problems on the Surface. Instead of conducting analyses of the systematic root causes of
customer issues, an engineered-products company rewarded the fast, short-term elimination of these
problems. There was no attention paid to the upstream processes, such as development, production,
and procurement. The result was that the same mistakes were repeatedly made, customer satisfaction
dropped, and error costs rose.
To Change Behavior, Change the Context
On the whole, people tend to behave rationally and are influenced by the behavior of others; seldom does
anyone intentionally act to the detriment of corporate goals and values. In order to raise performance and
quality, employee behavior has to change. Leaders are often aware of this, attempting to change employee
attitudes—and therefore behavior—through broad communication programs. But this approach tends to
trigger self-defense mechanisms. People prefer to stay within their established way of working—if they see
no rational reason to change. Simply telling them to change is not enough.
To change the behavior of employees, you have to adjust the context in which they work. This might mean
making change within processes, organizational structures, performance metrics, incentive systems, or the
distribution of roles and tasks. In the medium term, values and attitudes will shift, which then leads to a
sustainable improvement in quality.
It’s crucial to understand how employees are behaving—and why—in order to change their context.
In one example, a company became aware that employees were only following rules and processes when it
was absolutely essential. Project managers monitored quality criteria for full compliance but did not question
the results. Their performance was evaluated more on the basis of adherence to budgets and time schedules
than on long-term quality goals, such as non-quality costs in production or warranty costs.
At another organization, employees placed more weight on costs than quality—behavior that was a direct
result of the fact that their superiors looked primarily at cost metrics and did not emphasize quality metrics.

And at another, cross-divisional cooperation took place in development only sporadically, even though it was
prescribed in the standardized development processes. Employees explained that involving colleagues from
other departments would slow down coordination and decision-making processes when they had ambitious
time-to-market targets to reach.
Such behavior often results in unnecessary costs, delays in launching new products because of elaborate
error correction late in the process, dissatisfied customers, and dissatisfied employees.
Changing the context can correct the root causes of behavior issues. Employees have to see fast decision
making and a focus on sustainable improvements as useful, worthwhile, and rational. And management has
to move employees from having a silo mentality toward embracing a cooperative culture.
Six Ways to Foster Cooperation
Observing six simple rules can help foster cooperation and reduce complexity, often leading to a noticeable
change in behavior within a short period of time.
 Understand what employees do. A crucial first step is to gain a true understanding of the work
those employees and colleagues do and why they do it. Cross-regional and cross-functional
roundtables can be a helpful method for developing a common understanding.
 Reinforce integrators. Cooperation will thrive when the right people from different functions are at
the table, all with clearly defined and understood roles and responsibilities. For example, include
R&D as well as quality-department people within the development process. Flatter hierarchies will
increase the power of individuals and therefore minimize escalations and increase the speed of
quality-related decisions.
 Increase total quantity of power. By creating new power bases, such as operator self-control in
assembly lines—and not just shifting existing power—ownership of quality is spread more broadly.
 Increasing reciprocity. Set rich objectives and eliminate internal monopolies in order to foster
cooperation. Shared incentives among different functions can go a long way.
 Extend the shadow of the future. Leaders can encourage a long-term perspective in employees and
ensure sustainable solutions by, for example, penalizing R&D engineers for warranty costs and
encouraging cradle-to-grave product responsibilities.

 Penalize those who don’t cooperate; reward those who do. Measures such as implementing a
penalty for hiding failures—since failures can be great sources of improvement—can help eliminate
silo-like thinking.
In order to foster cross-functional cooperation, an automotive OEM applied numbers 1 and 2 from this list.
The company implemented a quality council to foster a cross-functional common understanding about
quality issues and required actions. The roles of the quality council, quality management department, and
functions are now clearly defined. This has led to flat hierarchies and fast decisions.
Another automotive OEM leveraged number 5, extending the shadow of the future. R&D engineers had
previously only been incentivized to adhere to budget and timeline. Now the project manager for the
development of a new car has the burden of the warranty cost of the former model, which comes in addition
to cost-saving targets for the new model.
At a toy manufacturer, rewarding those who cooperate—number 6—is an important part of the company’s
values. The CEO has stated that he expects cooperation from his employees—a value that has become
engrained in the culture. No one is blamed for failures, only for not helping others.
Quality Transformation Program
Changing corporate culture requires a holistic transformation program with an end-to-end view. A few
adjustments made here and there will not suffice. Such a program typically addresses a number of issues:
 Governance. It is often necessary to streamline organizational structures and adjust roles and
responsibilities in order to speed up decision-making processes and embed sustainable quality metrics
within evaluation systems.
 Quality Processes. Some less-than-ideal behavior is caused by process and system inefficiencies. It’s
important to make sure that necessary information is shared among divisions and processes are
clearly defined and standardized—avoiding a silo mentality.
 Capabilities. A range of methods that can promote cross-divisional cooperation are available for
preventive quality management, but these are often not used because of insufficient training. Further,
people tend to have negative views of the quality function, thinking of it as an area reserved for
employees coming to the end of their careers. To remedy these issues, group-wide training programs
should include quality-measurement methods as a standard feature. And quality has to be promoted

as an interesting career option, a move that will raise its perceived importance and lead to better
awareness.
 Communication. Strategic communication is an important accompanying measure. Management
needs to find ways to embed the importance of quality in the minds of employees through appropriate
communication, such as email newsletters or staff meetings. It is also a good idea to regularly
communicate positive quality-related news, such as the results of customer satisfaction surveys,
customer quotes, any decline in non-quality costs, or employee prizes awarded for outstanding
quality.
Success with quality transformation requires three far-reaching adjustments within companies.
Corporate management has to show commitment to the cause. Transparency—in this case, a clear
understanding of the work everyone does—begins at management level and trickles down to lower levels.
Top-level management should lead and participate in cross-functional quality meetings and hold regular
discussions of quality status and improvement projects.
Top managers also need to participate in status meetings, such as reviews of quality programs and “quality
gate” meetings. Many of the six abovementioned rules require fundamental changes in reward and incentive
systems, processes, and organizational structures—adjustments for which corporate management support is
absolutely vital.
There has to be cross-functional responsibility for quality transformation. Meaningful change to quality
management needs to be implemented throughout the entire company, with measures rolled out across
functions in order to boost cooperation among the departments from the very beginning.
The quality-management department might, for example, be made responsible for central coordination and
communication. It could also promote governance issues in close cooperation with individual departments,
as well as knowledge management and training. Cross-departmental teams must be made responsible for
improving processes.
A central, systematic project management office is indispensable. This office is responsible for planning
the program timeline and resources and implementing the project in waves in order to avoid disrupting the
company.

It also has to ensure that implementation takes place within the set timeline and budget. A successful project
management office—supported by experts from production, R&D, procurement, and supply chain
management—holds regular review meetings with those responsible for each of the measures.
Managing Change to Build a Culture of Quality
Several change management frameworks exist and specific components of each framework vary but most
models describe the change process along three general phases: (1) preparing for change, (2) transitioning,
and (3) institutionalizing change. Each phase is described in more detail below.
Preparing for Change

Prior to any change initiative, it is important to understand the context (e.g. current culture, readiness,
environment) in which the transition will occur. During this stage of the change process, leaders must define
the vision for the future desired state, conduct assessments, and identify change leaders.
 Define the change – Developing a clear vision of the desired state at the onset will avoid confusion
among employees and help to understand the scope and size of the initiative, and who will be
impacted.
 Conduct assessments – Every organization has a culture, or beliefs and values that shape formal and
informal policies and procedures. An understanding of this culture and the degree to which quality is
already present will inform the progress toward a sustainable culture of quality. It is useful to assess
organizational and employee readiness by collecting data on employee satisfaction, available
resources (e.g. technology, staff), history of change, perceived success rate, degree of resistance,
internal strengths and weakness, and external threats and opportunities. Potential data collection
methods include employee satisfaction or feedback surveys, environmental scanning process (e.g.
SWOT analysis), focus groups or employee interviews, financial data, or other existing assessment
tools. Also consider other change initiatives already occurring as introduction of an additional change
initiative (e.g. relocating physical office space, restructuring organizational hierarchy) can be
disruptive.
 Identify change leaders – Change processes require a range of leadership and support. For
transformational change, it is very important to have a highly visible and fully committed executive
leader. Executive leaders often delegate oversight of change processes to a change management team

(e.g. QI governing body). These leaders can support change by staying visible throughout the
transition, serving as roles models for staff, empowering others to act, and communicating updates to
staff. However, the executive leaders must remain fully engaged, visible, and transparent throughout
the process.
Transitioning
In this phase of the change process, the change leaders will develop the change management plans which
should include key milestones, goals, and objectives; training plans; delegation of responsibilities; resource
allocation; and communication strategies. When developing a culture of quality, the QI plan will be a key
component of the change management planning efforts, as it includes specific objectives related to quality,
including addressing training and communication needs.
It is also very important to assess and manage resistance on an ongoing basis. In the “transitioning” phase of
change, many sources of employee resistance are the result of anxiety around either not having the skills to
implement QI projects or a fear of blame placing or punishment over poor performance.
 Communication & Resistance Management – A strong communications plan is essential to

successful uptake of quality. Employees must know that the change is happening, why it is
happening, the intended outcomes, their role in implementing the change, and how the change will
affect them. Leaders should develop a communication strategy early, employing multiple open
communication channels, reducing misinformation, and disseminating targeted messaging segmented
for particular audiences (e.g. frontline staff, middle managers, executive leaders, governing entity)
based on levels of influence and involvement. Key messaging should be delivered based on the phase
of the change process. For example, in the early stages it is crucial to create a sense of urgency and
awareness for the change to generate buy-in among employees. Initial communications may focus on
consequences of not changing and benefits of adopting the change. Refer to Table 2 below for
communication and change management strategies to address common sources of employee
resistance to QI at each stage of the process.
 Planning & Implementation – To facilitate the change process, the steering team should develop an
implementation plan that includes the budget and step-by-step action plans and timelines. Special
consideration should be given to communication, contingency planning, monitoring, dissemination,
and institutionalization. An essential element of the process is attending to the needs of the staff.

Consider the necessary knowledge, skills, and awareness of your staff. It is especially important to
ensure staff receives the training and support they need to successfully adjust to the change.
 Training & Coaching – Provide employees the knowledge and skills necessary to adopt the change.
Training and resources should be offered to employees based on their level of involvement with
quality. For example, frontline employees may need to be trained in how to use certain QI methods
and tools while those responsible for leading QI projects may need training in how to facilitate a QI
project. Additionally, managers and supervisors are key in the uptake of QI and managing change as
they have the most direct influence over their employees. In addition to training in QI concepts and
methods, they need change management tools to actively gain and maintain buy-in from their direct
supervisees.
Institutionalizing
Once the change management and/or QI plan(s) have been implemented, leaders should evaluate progress,
understand where there are gaps in progress, and determine next steps for sustaining progress and corrective
action. At this stage, the change should become a part of both the formal and informal culture (e.g. adopt
official policies around quality, incorporate into performance appraisal process, hold ongoing events to
celebrate successes).
In this tutorial, we will have a look at the change management process suggested by John Kotter.
Eight-Step Change Management Process
The steps of Kotter's change management approach.
Step 1: Urgency Creation
A change is only successful if the whole company really wants it. If you are planning to make a change, then
you need to make others want it. You can create urgency around what you want to change and create hype.
This will make your idea well received when you start your initiative. Use statistics and visual presentations
to convey why the change should take place and how the company and employees can be at advantage.
Step 2: Build a Team
If your convincing is strong, you will win a lot of people in favour of change. You can now build a team to
carry out the change from the people, who support you. Since changing is your idea, make sure you lead the
team.
Organize your team structure and assign responsibilities to the team members. Make them feel that they are
important within the team.
Step 3: Create a Vision
When a change takes place, having a vision is a must. The vision makes everything clear to everyone. When
you have a clear vision, your team members know why they are working on the change initiative and rest of
the staff know why your team is doing the change.
Step 4: Communication of Vision
Deriving the vision is not just enough for you to implement the change. You need to communicate your
vision across the company.
This communication should take place frequently and at important forums. Get the influential people in the
company to endorse your effort. Use every chance to communicate your vision; this could be a board
meeting or just talking over the lunch.
Step 5: Removing Obstacles
No change takes place without obstacles. Once you communicate your vision, you will only be able to get
the support of a fraction of the staff. Always, there are people, who resist the change.
Sometimes, there are processes and procedures that resist the change too! Always watch out for obstacles
and remove them as soon as they appear. This will increase the morale of your team as well the rest of the
staff.
Step 6: Go for Quick Wins
Quick wins are the best way to keep the momentum going. By quick wins, your team will have a great
satisfaction and the company will immediately see the advantages of your change initiative.
Every now and then, produce a quick win for different stakeholders, who get affected by the change process.
But always remember to keep the eye on the long-term goals as well.
Step 7: Let the Change Mature
Many change initiatives fail due to early declaration of victory. If you haven't implemented the change 100%
by the time you declare the victory, people will be dissatisfied when they see the gaps.
Therefore, complete the change process 100% and let it be there for some time. Let it have its own time to
get integrated to the people's lives and organizational processes before you say it 'over.'
Step 8: Integrate the Change
Use mechanisms to integrate the change into people's daily life and corporate culture. Have a continuous
monitoring mechanism in place in order to monitor whether every aspect of the change taking place in the
organization. When you see noncompliance, act immediately.
Conclusion

In the constantly changing corporate world, the one who welcomes the changes stays ahead of the
competition.
Organization culture and quality
Organizational Requirements for a Quality Management System
Definition
The term organization in the context of a quality management model is used to indicate the management and
the supporting organizational structure of the laboratory. Organization is one of the essential elements of the
quality system, and is intimately related to all the other elements in the model. Characteristics essential to
success
The principal element for a successful quality management system is managerial commitment.
• Management at all levels must fully support, and actively participate in the quality system activities.
• Support should be visible to staff so that there is an understanding of the importance of the effort.
• Without the engagement of management, including the decision-making level of the organization, it will
not be possible to put in place the policies and the resources needed to support a laboratory quality
management system. A second vital element is that the organizational structure must be designed to assure
that the quality goals of the organization are met.
• The laboratory must be a legally structured entity according to local requirements.
• All the organizational elements required to assure a properly functioning quality management system must
be in place. Organization Personnel Equipment Purchasing & Inventory Process Control Information
Management Documents & Records Occurrence Management Assessment Process Improvement Customer
Service Facilities & Safety Organization
Key organizational components.
The important organizational requirements for achieving a successful quality system include the
following.

• Leadership—Laboratory leaders must be fully committed to implementation of the system, and these
leaders also will need vision, team-building and motivational skills, good communication techniques, and the
ability to use resources responsibly.
• Organizational structure—The structure of the organization should be clearly defined, and this should be
reflected by a functional organizational chart with clear assignment of responsibility.
• Planning process—Skills for planning are needed, and planning should address a time frame, responsibility
for conducting the activities, the availability and use of human resources, management of workflow, and
financial resources.
• Implementation—Implementation requires that a number of issues must be addressed by the management

staff. These include management of projects and activities, directing resources to accomplish plans, and
assuring that timelines are met and goals achieved.
• Monitoring—As components of the quality management system are put in place, processes for monitoring
will be needed to assure that the system is working, that benchmarks and standards are being met. This
element is essential to the primary goal of a quality system, which is continuous improvement. Organization
Management Role providing leadership can be defined in many ways, but it is an important factor in the
success of any organization’s efforts for improvement. A good leader will exercise responsible authority.
Important roles for a leader include:
• providing vision;
• giving a direction for goal-setting;
• motivating staff;
• providing encouragement. A strong leader will help staff understand the importance of the task at hand.
Responsibilities of managers “Laboratory management shall have responsibility for the design,
implementation, maintenance, and improvement of the quality management system.” ISO 15189 [4.1.5] A
quality management system outlines specific responsibilities of managers. Management must be responsible
for:
• establishing the policies and processes of the quality system;

• assuring all policies, processes, procedures, and instructions are documented;
• making sure that all personnel understand documents, instructions, and their duties and responsibilities;
• providing personnel with the appropriate authority and resources to carry out their duties. Management is
charged with providing a quality manual which describes the quality management system. The quality
manual is the means by which the policies are established and communicated to the staff and the users of the
laboratory.
Quality Managers assist in developing policies, planning, and implementing the quality management
system. They are usually responsible for many of the implementing and monitoring processes, and must
communicate all aspects of the quality management system processes to the laboratory director or head of
the laboratory.
Importance of Vision and Mission Statements in quality management
One of the first things that any observer of quality management thought and practice asks is whether a
particular organization has a vision and mission statement.
A vision statement is sometimes called a picture of your company in the future but it’s so much more than
that. Your vision statement is your inspiration, the framework for all your strategic planning.
What you are doing when creating a vision statement is articulating your dreams and hopes for your
business. It describes what you are trying to build and serves as a touchstone for your future actions.
A vision statement may apply to an entire company or to a single division of that company. Whether for all
or part of an organization, the vision statement answers the question, "Where do we want to go?"
Vision Statement and road map
Don’t confuse a vision statement with a road map for your business’s future success; it's not. What Bill
The vision statement is not tied to the details.
That's why it's important when crafting one to let your imagination go and dare to dream - and why it's
important that a vision statement captures your passion. The vision statement is about soaring; the poring
over ways and means to accomplish the vision comes after.
How Does a Vision Statement Differ From a Mission Statement?

Unlike the mission statement, a vision statement is for you and the other members of your company,
not for your customers or clients.
When writing one, your mission statement and your core competencies can be a valuable starting point for
articulating your values. Be sure when you're creating a vision not to fall into the trap of only thinking ahead
a year or two. Once you have one, your vision statement will have a huge influence on decision making and
the way you allocate resources.
Why Having a Vision Statement is So Important for Your Small Business
But while a vision statement doesn't tell you how you're going to get there, it does set the direction for
your business planning. That makes creating one especially compelling for small businesses because the
main reason businesses fail is because of poor planning.
And having and being able to articulate and share a vision is one of the hallmarks of a strong business leader
Some of the benefits of having a vision and mission statement are discussed below:
 Above everything else, vision and mission statements provide unanimity of purpose to organizations
and imbue the employees with a sense of belonging and identity. Indeed, vision and mission
statements are embodiments of organizational identity and carry the organizations creed and motto.
For this purpose, they are also called as statements of creed.
 Vision and mission statements spell out the context in which the organization operates and provides
the employees with a tone that is to be followed in the organizational climate. Since they define the
reason for existence of the organization, they are indicators of the direction in which the organization
must move to actualize the goals in the vision and mission statements.
 The vision and mission statements serve as focal points for individuals to identify themselves with
the organizational processes and to give them a sense of direction while at the same time deterring
those who do not wish to follow them from participating in the organization’s activities.
 The vision and mission statements help to translate the objectives of the organization into work
structures and to assign tasks to the elements in the organization that are responsible for actualizing
them in practice.
 To specify the core structure on which the organizational edifice stands and to help in the translation
of objectives into actionable cost, performance, and time related measures.

 Finally, vision and mission statements provide a philosophy of existence to the employees, which is
very crucial because as humans, we need meaning from the work to do and the vision and mission
statements provide the necessary meaning for working in a particular organization.
Transforming Vision into Reality
After countless hours of discussion, working with the key stakeholders within the organization, your team
has determined the organization’s vision, supporting core values and strategy.
You’ve defined the company’s vision statement as “To be number one in the market we serve.” Your team is
feeling confident about the work they’ve done to date, but they may not realize that the real work has only
just begun.
Take Note
It isn’t enough for plan to do leaders to define the vision of an

organization. Today’s leaders need to actively participate in the effort to
make their vision a reality. Before implementation can begin, it’s
important for a leader, to understand his or her role
Steps in transforming vision to reality.

1. Communicate
Executing strategy takes commitment from people at all levels. Leaders who can break down corporate
strategy across the organization so it is directly relevant at each level—corporate, department, team and
individual—help everyone to focus on the organization’s key activities. Companies that recognize and
embrace this level of collaboration strengthen their chances of success.
Leaders need to clearly articulate the company’s vision in a way that motivates, inspires and excites
employees to commit to their individual work. The key to success is to communicate the vision through
multiple channels:
 Via hard copy
 Via the company’s intranet

 In speeches, interviews and press releases
It’s important to remember that leaders don’t communicate with words alone. Their actions speak volumes.
For example:
One high-tech company we know took some powerful action to showcase its vision. The president and CEO
and his senior leadership team visited each location within the organization to conduct quarterly town
meetings where they met with employees to share the vision, solicit ideas and celebrate successes.
In addition, the president and his team periodically spent a day assuming different roles within the
organization—working the help desk, taking customer calls, going on sales calls, etc.—to better understand
the challenges and opportunities employees faced on a day-to-day basis.
As upper management walked the talk, they strengthened their connections with employees at all levels.
They fostered a sense of camaraderie and accessibility and enhanced the company’s ability to make its vision
a reality.
2. Embrace Change
Business strategies and processes have lifecycles. In the wake of change, success can quickly turn to failure.
The need for change can come from many different avenues—from a competitor, a new market requirement
or a significant environmental shift outside of your business model.
Even the best leaders can’t predict every change, but the best organizations are able to adapt rapidly.
For example, a main market leader company employees continually ask, “How can we do better?” To that
end, they consistently look at their customer processes from a cross-functional and customer perspective,
making improvements that keep them number one in the market.
3. Plan for Implementation

implementing the organization’s strategies requires a detailed, prioritized action plan. Change takes time. To
successfully implement change, you need to do the following:

 Establish priorities. Once you’ve established the organization’s objectives, prioritize them. Trying
to do everything at once sets you up for failure.
 Develop detailed action plans with accountabilities for each objective. Translate your strategy
into operational terms through specific action plans, programs, budgets and procedures.
Implementation involves successfully identifying and allocating the required capital and human
resources and executing the necessary organizational changes. People will be more successful if they
understand the objective and their accountabilities, deliverables and timeframes.
 Identify risks and develop contingency plans. Every change has risk associated with it. As soon as
you identify a risk, develop a sound contingency plan to deal with it. Then don’t be afraid to execute
the contingencies.
 Conduct stakeholder analysis. Proactively seek the opinions of those affected by the change.
 Measure, monitor and control. Establish appropriate metrics. Whether the news is good or bad,
measure the performance and results and act accordingly. Weigh the project priorities, regularly
evaluate the risks and implement contingency plans when necessary.
4. Develop an Operating Model
An operating model is a tool used to define how the organization will implement its strategic or tactical plan
into its operating environment. It encompasses all core work, competencies, tools and technologies,
organizational structure and processes needed to execute the organization’s strategies. It:
 Helps build capabilities and commitments to new ways of managing both change and operations
work
 Helps align business objectives
 Helps an organization manage change that is vital to the enterprise, division or department
 Creates a well-defined, structured organization that achieves its objectives by aligning human capital
and business needs to stated goals
 Allows the organization to be proactive and adapt to changes in technologies, in the marketplace, etc.
 Creates a framework that serves as an enabler of process-centric, customer- focused and information-
driven business models

 Links organizational change with performance to create a framework for making change work
For example:
The management of a healthcare firm adopted a strategy to grow the business through acquisitions. The
company’s Information Technology group recognized the need for a solid integration plan and execution
process and developed an operating model that identified M&A integration as a component of their core
work. They then identified the competencies needed to support the work, identified an optimal organizational
structure and hired and trained accordingly.
Another component of their model development was to acquire tools and technology and create an
integration process that enabled them to ingrate new businesses efficiently. Poor integration of the acquired
organizations could have been fatal to the company’s strategy and existence.
Summary
By communicating successfully, embracing change, developing implementation plans and creating operating
models that make sense, your organization can take the loftiest of visions and transform them into a
profitable, fulfilling reality.
QMS strategic initiative.
Take Note
Successful organizations have figured out that customer satisfaction has a direct
impact on the bottom line. Creating an environment which supports a quality
culture requires a structured, systematic process. Following are steps to
implementing a quality management system that will help to bring the process full
circle.
Let’s begin by defining the word quality.

Quality Defined:
“A subjective term for which each person has his or her own definition. In technical usage, quality can have
two meanings: (1) the characteristics of a product or service that bear on its ability to satisfy stated or implied
needs and (2) a product or service free of deficiencies.” A Quality Management System is “The
organizational structure, processes, procedures and resources needed to implement, maintain and continually
improve the management of quality.” Total Quality Management (TQM) is a management approach to long-
term success through customer satisfaction. TQM focuses on the development of products and services
that meet the needs and exceed the expectations of key customer groups.
This is accomplished by creating an integrated “system” that is process centered, has total employee
involvement and is completely customer focused. Creating a culture that is customer focused and
collecting and studying data that supports efforts for the customer are critical components to the system.
Steps to Creating a Total Quality Management System
1. Clarify Vision, Mission and Values
Employees need to know how what they do is tied to organizational strategy and objectives.
All employees need to understand where the organization is headed (its vision), what it hopes to accomplish
(mission) and the operational principles (values) that will steer its priorities and decision making.
Develop a process to educate employees during new employee orientation and communicate the mission,
vision and values as a first step.
2. Identify Critical Success Factors (CSF)
Critical success factors help an organization focus on those things that help it meet objectives and move a
little closer to achieving its mission. These performance based measures provide a gauge for determining
how well the organization is meeting objectives.
Some example CSF:

 Financial Performance
 Customer Satisfaction
 Process Improvement
 Market Share
 Employee Satisfaction
 Product Quality
3. Develop Measures and Metrics to Track CSF Data
Once critical success factors are identified, there needs to be measurements put in place to monitor and track
progress. This can be done through a reporting process that is used to collect specified data and share
information with senior leaders. For example, if a goal is to increase customer satisfaction survey scores,
there should be a goal and a measure to demonstrate achievement of the goal.
4. Identify Key Customer Group
Identifying key customer groups are is important so that products and services can be developed based on
customer requirements. The mistake a lot of organizations make is not acknowledging employees as a key
customer group.
Example Key Customer Groups:
 Employees
 Customers
 Suppliers
 Vendors
 Volunteers
5. Solicit Customer Feedback
The only way for an organization to know how well they are meeting customer requirements is by simply
asking the question. There should be a structured process to solicit feedback from each customer group in an
effort to identify what is important to them. Organizations often make the mistake of thinking they know

what is important to customers and ask the wrong survey questions. This this type of feedback is obtained
through customer focus groups.
6. Develop Survey Tool
Next develop a customer satisfaction survey tool that is based on finding out what is important to customers.
For example, customers might care more about quality than cost but if you are developing a product and
trying to keep the cost down and skimping on the quality, you are creating a product that might not meet the
needs of the customer.
There are lots of survey software available. These include Survey Gizmo which is an easy to use online
survey tool. You can play with it and try it for free to see if its something that would benefit your
organization.
7. Survey Each Customer Group
Each customer group should have a survey customized to their particular requirements and they should be
surveyed to establish baseline data on the customers’ perception of current practice. This provides a starting
point for improvements and demonstrates progress as improvement plans are implemented.
8. Develop Improvement Plan
Once the baseline is established you should develop an improvement plan based on customer feedback from
each group. Improvement plans should be written in SMART goals format with assignments to specific staff
for follow through.
Goals May Include Some of the Following:
 Process improvement initiatives, such as: customer call hold times

 Leadership Development: Walk-the-Talk
 Management Training/Development: How to manage employees in a quality environment
 Staff Training/Development: Customer Service
 Performance Management: Setting expectations, descriptions creating job descriptions that support
the vision and holding staff accountable.

9. Resurvey
After a period of time (12-18 months), resurvey key customers to see if scores have improved. Customer
needs and expectations change over time so being in-tune to changing needs and expectations is critical to
long-term success.
10. Monitor CSF
It is important to monitor CSF monthly to ensure there is consistent progress toward goals. This also allows
for course correction should priorities and objectives change during the review period.
11. Incorporate Satisfaction Data into Marketing Plans
Once you’ve achieved some positive results with your satisfaction data, use it as a marketing tool! A lot of
successful organizations miss the boat by not letting others know what they do well. Customers want to
know how an organizations internal processes work especially if those process help to deliver an outstanding
product or service!
12. Technology
Make sure technology is user-friendly and supports targeted improvements. For example, a website should
be easy to navigate as well as easy to find (SEO) and the content should be easy to understand.
Bridge the gap between strategy, operations, structure and people - with a focus on execution
Collaborate with your clients to build a blueprint for the organisation and help bring the design to life. help
your clients to ‘decode’ their strategies, clarify their business and operating models and identify the
organisation design requirements – structures, governance and management systems, processes, jobs, culture
and people capabilities – that will be required to make the organisation work.
Have a clear understanding of what motivates people and how work is most successfully designed. Using
this knowledge help clients build an effective organisation that engages leadership and energises employees,
driving performance and delivery.
The issue
clients range from small, single-product companies to global conglomerates, family-owned businesses to

state-owned enterprises, high-growth start-ups to mature businesses. Help clients with a wide range of
business issues:
 aligning organizations with new strategies
 designing organisations to support expansion into new markets
 clarifying governance and accountability within rapidly changing organizations
 helping businesses make their matrix structure work
 changing structure and culture to respond to privatisation or deregulation
 integrating organisations intangible assets in mergers and acquisitions.
The common denominator in all these issues is the challenge facing the business leader:
‘How do I organise my business to execute my strategy effectively?’
Clarity about strategic goals and a commitment to them is essential.
Developing both the ability at an individual and team level to deliver and sustain an organisation’s
performance is vitally important.
Often we find that executives jump straight from strategy into putting people in boxes, placing employees in
jobs that are ill defined and organisation structures that are poorly constructed.
Clients need a better way to link strategy and structure and we help them by providing senior executives
with a disciplined approach to building effective organisations.
The organization needs expertise in translating strategy into operating models and organisation design
requirements.
The organization should have a proven understanding of people and a breadth of experience that cuts across
organizations and industries globally.
We work in partnership with our clients to address their specific needs and focus on real-world
implementation. We don’t just leave behind a
.
Therefore approach includes the following steps:
 Strategy clarification
 Clarifying the business model
 A ‘fit for purpose’ operating model
 Organization design
 Culture transformation
 Implementation.
1. Describe the process of turning quality strategy into reality

2. Explain the Steps to Creating a Total Quality Management System
3. Compare the Importance of Vision and Mission Statements in quality

management.
4. Enumerate the process of Identify Critical Success Factors (CSF) in an

organization
REFERENCES.

LECTURE NINE.
APPRAISAL AND IMPROVEMENT PROGRAMMES.
Introduction
This section will enlighten the learner on meaning of performance appraisal conducting employee
performance appraisal, Overcoming Negativity around the Performance Appraisal and the role of
performance appraisal in TQM.

1. Define performance appraisal.
2. Explain the key Guidelines to Conduct Employee Performance Appraisals
3. Describe various methods 0f Overcoming Negativity around the Performance

Appraisal?
4. Explain the role of project appraisal in project quality management
Meaning of performance appraisal
The process by which a manager or consultant (1) examines and evaluates an employee's work behavior by
comparing it with preset standards, (2) documents the results of the comparison, and (3) uses the results to
provide feedback to the employee to show where improvements are needed and why.
Performance appraisals are employed to determine who needs what training, and who will be promoted, how
much a person should be paid, demoted, retained, or fired.
Guidelines to Conduct Employee Performance Appraisals
Yearly performance reviews are critical. Organization's are hard pressed to find good reasons why they can't
dedicate an hour-long meeting once a year to ensure the mutual needs of the employee and organization are
being met. Performance reviews help supervisors feel more honest in their relationships with their
subordinates and feel better about themselves in their supervisorial roles. Subordinates are assured clear
understanding of what's expected from them, their own personal strengths and areas for development and a
solid sense of their relationship with their supervisor. Avoiding performance issues ultimately decreases
morale, decreases credibility of management, decreases the organization's overall effectiveness and wastes
more of management's time to do what isn't being done properly. Conduct the following activities.

1. Design a legally valid performance review process
Patricia King, in her book, Performance Planning and Appraisal, states that the law requires that
performance appraisals be: job-related and valid; based on a thorough analysis of the job; standardized for all
employees; not biased against any race, color, sex, religion, or nationality; and performed by people who
have adequate knowledge of the person or job. Be sure to build in the process, a route for recourse if an
employee feels he or she has been dealt with unfairly in an appraisal process, e.g., that the employee can go
to his or her supervisor's supervisor. The process should be clearly described in a personnel policy.
2. Design a standard form for performance appraisals
Include the name of the employee, date the performance form was completed, dates specifying the time
interval over which the employee is being evaluated, performance dimensions (include responsibilities from
the job description, any assigned goals from the strategic plan, along with needed skills, such as
communications, administration, etc.), a rating system (e.g., poor, average, good, excellent), space for
commentary for each dimension, a final section for overall commentary, a final section for action plans to
address improvements, and lines for signatures of the supervisor and employee. Signatures may either
specify that the employee accepts the appraisal or has seen it, depending on wording on the form.
3. Schedule the first performance review for six months after the employee starts employment
Schedule another six months later, and then every year on the employee's anniversary date.
4. Initiate the performance review process and upcoming meeting
Tell the employee that you're initiating a scheduled performance review. Remind them of what's involved in
the process. Schedule a meeting about two weeks out.
5. Have the employee suggest any updates to the job description and provide written input to the
appraisal
Have them record their input concurrent to the your recording theirs. Have them record their input on their
own sheets (their feedback will be combined on the official form later on in the process). You and the
employee can exchange each of your written feedback in the upcoming review meeting. (Note that by now,

employees should have received the job descriptions and goals well in advance of the review, i.e., a year
before. The employee should also be familiar with the performance appraisal procedure and form.)
6. Document your input -- reference the job description and performance goals
Be sure you are familiar with the job requirements and have sufficient contact with the employee to be
making valid judgments. Don't comment on the employee's race, sex, religion, nationality, or a handicap or
veteran status. Record major accomplishments, exhibited strengths and weaknesses according to the
dimensions on the appraisal form, and suggest actions and training or development to improve performance.
Use examples of behaviors wherever you can in the appraisal to help avoid counting on hearsay. Always
address behaviors, not characteristics of personalities. The best way to follow this guideline is to consider
what you saw with your eyes. Be sure to address only the behaviors of that employee, rather than behaviors
of other employees.
7. Hold the performance appraisal meeting
State the meeting's goals of exchanging feedback and coming to action plans, where necessary. In the
meeting, let the employee speak first and give their input. Respond with your own input. Then discuss areas
where you disagree. Attempt to avoid defensiveness; admitting how you feel at the present time, helps a
great deal. Discuss behaviors, not personalities. Avoid final terms such as "always," "never," etc. Encourage
participation and be supportive. Come to terms on actions, where possible. Try to end the meeting on a
positive note.
8. Update and finalize the performance appraisal form
Add agreed-to commentary on to the form. Note that if the employee wants to add attach written input to the
final form, he or she should be able to do so. The supervisor signs the form and asks the employee to sign it.
The form and its action plans are reviewed every few months, usually during one-on-one meetings with the
employee.
9. Nothing should be surprising to the employee during the appraisal meeting
Any performance issues should have been addressed as soon as those issues occurred. So nothing should be a
surprise to the employee later on in the actual performance appraisal meeting. Surprises will appear to the

employee as if the supervisor has not been doing his/her job and/or that the supervisor is not being fair. It is
OK to mention the issues in the meeting, but the employee should have heard about them before.
Why We Hate the Performance Review
Most employees in companies today are all too familiar with the concept of the performance review. Just the
mention of this often dreaded occurrence of discussion with one’s supervisor where they get to critique every
move you’ve made during the year while you sit ideally by is sure to send negative feelings throughout the
minds of employees everywhere. The performance review generally has a similar effect on managers and
supervisors as well. So why is this performance review so dreaded and loathed by many? A few of the
reasons are listed below.
Employees - Why They Hate the Performance Review Process
They have no control in the situation. Managers get to provide ratings and comments on multiple areas of
performance that are most often subjective in nature. If an employee disagrees, they might get a small
“employee comments” area to provide their rebuttal all the while knowing that if they push too much the
person controlling their future still has control.
Reviews sheets are completed before the actual discussion occurs. Therefore bringing up comments has little
effect on the actual rating which is most often tied to their annual increase which is usually only a few cents
different from the person with the next highest or lowest rating.
Why Managers Hate the Performance Review Process.
Managers often dread the discussion of the employee performance review assuming the discussion will turn
into a battle with the manager left to convince the employee that their ratings are accurate. Managers usually
assume employees think they perform better than they actually do.
Managers are busy with tasks and goals of their own . Taking the time to thoroughly review a whole year’s
worth of performance is time consuming. They often rush through the forms because the HR department has
a deadline they are struggling to meet?

The forms are too complicated, long, short or don’t cover what is really important to success in this
department.
Overcoming Negativity around the Performance Appraisal?
Here are a few tips to get you started:
1. Set clear expectations. Provide them on the first day of employment.

2. Provide feedback all year. Create a culture where performance discussions are a regular part of the
work day and review meetings are held at frequent intervals such as monthly.
3. Ask first, tell later. Begin a performance discussion by asking the employee to rate their
performance. Have them provide examples of where they have met and exceeded the expectations.
4. Do not complete the form until you have the discussions. Do monitor performance all year and
have examples ready to discuss.
5. Guarantee no surprises at the annual meeting. If you are waiting for annual meeting to discuss
performance, you lost your chance to be effective
What is Project Appraisal?
Definition
Project Appraisal is a consistent process of reviewing a given project and evaluating its content to
approve or reject this project, through analyzing the problem or need to be addressed by the project,
generating solution options (alternatives) for solving the problem, selecting the most feasible option,
conducting a feasibility analysis of that option, creating the solution statement, and identifying all
people and organizations concerned with or affected by the project and its expected outcomes. It is an
attempt to justify the project through analysis, which is a way to determine project feasibility and cost-
effectiveness.
Appraising a project means evaluating the proposed solution against its ability to solve the identified
problem or need. Some PM methodologies and guides (e.g. PMBOK) regards the technical and
financial project appraisal as a component of the initiation or pre-planning phase. PRINCE2 suggests
developing the business case which is a form of project appraisal. The Method 123 (MPMM, which is
based on PMI and PRINCE2 standards) also uses the business case for preparing a proposed project for
feasibility analysis and assessment.

Project appraisal management is an essential stage of any project, regardless of its nature, type and size.
This stage represents the first point of the pre-planning or initiation phase. Without having appraised a
project, it is financial and technically unreasonable to proceed with further planning and development.
No matter whether you are going to purchase a new car (e.g. my neighbor’s project), constructing a
building, improving a business process, updating a network system, conducting a marketing campaign,
building a garage, or any other initiative, you should make a preliminary assessment and appraisal of
your undertaking in order to be sure that that you will do a required and necessary change to your
environment.
Key Steps in project appraisal
Various PM methodologies use various approaches and techniques for developing a project appraisal. In my
practice we use some method that regards the appraisal process as a series of 4 steps that have a range of sub-
steps and tasks. In this checklist you can view the entire hierarchy with the details. I am going to give an
overview of the steps. If you want to get deeper, please read the checklist.
Step 1. Concept Analysis
The first step requires you (as a project appraiser or analyst) to conduct a range of analyses in order to
determine the concept of the future project and provide the Decision Package for the senior management
(project sponsors) for approval. It means you need to carry out the problem-solution analysis that determines
the problem/need to be addressed and the solution to be used to handle the problem. The solution should
analyzed by cost-effectiveness and feasibility (various project appraisal methods and techniques can be
used). Also you will need to identify stakeholders (those people and organizations involved in or affected by
the problem and/or solution) and analyze their needs (how they relate to the problem and/or solution). After
all, you must develop a decision package that includes the problem statement, the solution proposal, the
stakeholder list, and the funding request. This package will then be submitted to the sponsor for approval (or
rejection). If the sponsor approves the project concept then you can proceed to the next step.
Step 2. Concept Brief
At this step you must develop a summary of the project concept to define the goals, objectives, broad scope,
time duration and projected costs. All this data will be used to develop the Concept Brief. You need to
develop a project statement document that specifies the project mission, goals, objectives and vision. Then
you create a broad scope statement that specifies the boundaries, deliverables ad requirements of your

endeavor. Finally you make a preliminary schedule template that determines an estimated duration of the
project, and then develop a cost projection document based on cost estimates and calculations.
Step 3. Project Organization
You use the Concept Brief to determine an organizational structure of your project. This structure should be
developed and explained in the Project Organizational Chart. The document covers such issues as
governance structure (roles and responsibilities), team requirements and composition, implementation
approach, performance measures, other info. The idea behind the Project Organizational Chart is to create a
visual representation of the roles, responsibilities and their relationships and what people/organizations are
assigned to what roles and duties within the project.
Step 4. Project Approval
The final stage requires you to review all the previous steps and gather them into a single document called
the Project Appraisal. This document summarizes all the estimations and evaluations made, to justify the
project concept and verify that the proposed solution addresses the identified problem. The financial, the
cost-effectiveness and the feasibility analyses will serve as the methods of project appraisal to approve the
project. The document is to be submitted to the snooper stakeholders (the customer, the sponsor) for review
and approval. If the appraisal is approved, then the project steps to the next phase, the planning.
Successful organizations have figured out that customer satisfaction has a direct impact on the bottom line.
Creating an environment which supports a quality culture requires a structured, systematic process.
Following are steps to implementing a quality management system that will help to bring the process full
circle.
There are two types of project appraisals;

•Economic appraisal; which consists of Cost-benefit analysis, Cost-
effectiveness analysis andScoring and weighting
•Multi-criteria analysis. (An example of where an economic appraisal is that written for the World Bank
Which) sites three areas critical for proper project appraisal.
These are;(1). Counterfactual private sector supply response. Any type of cost-benefit analysis requires the
project evaluator to specify the counterfactual: what would the world have looked like in the
absence of the project?

(2). Fiscal impact. Applying the private sector counterfactual would lead the Bank to undertake projects with
a reasonable case for public intervention, such as basic infrastructure, primary education, and rural health.
(3). Lending. Project-specific appraisal can at best assess only the rate of return and the acceptability of the
project being appraised.
ROLE OF PROJECT APPRAISAL IN PROJECT MANAGEMENT
Roles of project appraisal;
There are two types of project appraisals;

•Economic appraisal; which consists of Cost-benefit analysis, Cost-
effectiveness analysis andScoring and weighting
•Multi-criteria analysis. An example of where an economic appraisal is that written for the World Bank
(which sites three areas critical for proper project appraisal.
These are;
(1). Counterfactual private sector supply response. Any type of cost-benefit analysis requires the project
evaluator to specify the counterfactual: what would the world have looked like in the absence
of the project?
(2). Fiscal impact. Applying the private sector counterfactual would lead the Bank to undertake projects with
a reasonable case for public intervention, such as basic infrastructure, primary education, and rural health.
(3). Lending. Project-specific appraisal can at best assess only the rate of return and the acceptability of the
project being appraised.
4. Projectappraisalhelpspartnershipto;
•Be consistent and objective in choosing projects
•Make sure its programme benefits all sections of the community, including those from ethnic
groups who have been left out in the past
•Provide documentation to meet financial and audit requirements and to explain decisions to local people.
5. Appraisal justifies spending money on a project.
Appraisal asks fundamental questions about whether funding is required and whether a project offers good
value for money. It can give confidence that public money is being put to good use, and help identify other
funding to support a project. Getting it right may help a partnership make its resources go further in meeting
local need.
6. Appraisal is an important decision making tool.

Appraisal involves the comprehensive analysis of a wide range of data, judgments and assumptions, all of
which need adequate evidence. This helps ensure that projects selected for funding:
•Will help a partnership achieve its objectives for its area
•Are deliverable
•Involve local people and take proper account of the needs of people from ethnic minorities and other
minority groups
•Are sustainable
•Have sensible ways of managing risk.
7. Appraisal lays the foundations for delivery
.Appraisal helps ensure that projects will be properly managed, by ensuring appropriate financial and
monitoring systems are in place, that there are contingency plans to deal with risks and setting
milestones against which progress can be judged.
8. Projectappraisalhelpsapartnership’smanagementto;
•Be consistent and objective in choosing projects
•Make sure its programme benefits all sections of the community, including those from ethnic
groups who have been left out in the past
•Provide documentation to meet financial and audit requirements and to explain decisions to local people.
9. Appraisal justifies spending money on a project.
Appraisal asks fundamental questions about whether funding is required and whether a project offers good
value for money. It can give confidence that public money is being put to good use, and help identify other
funding to support a project. Getting it right may help a partnership make its resources go further in meeting
local need.
10. Appraisal is an important decision making tool.
Appraisal involves the comprehensive analysis of a wide range of data, judgments and assumptions, all of
which need adequate evidence. This helps ensure that projects selected for funding:
•Will help a partnership achieve its objectives for its area
•Are deliverable
•Involve local people and take proper account of the needs of people from ethnic minorities and other
minority groups
•Are sustainable
•Have sensible ways of managing risk.
11. Appraisal lays the foundations for delivery

.Appraisal helps ensure that projects will be properly managed, by ensuring appropriate financial and
monitoring systems are in place, that there are contingency plans to deal with risks and setting
milestones against which progress can be judged
Performance appraisal and TQM.
Performance appraisals and assessments are just one piece of the talent management puzzle. In order to build
an empowered and skilled workforce, companies need do more than audit employee achievements.
Organization should work towards a management cycle where judgment isn’t the sole focus— ongoing
support and improvement should be just as important, if not more.
So what exactly does “ongoing performance management” look like?
It’s a series of continuous events that include the following processes and benefits:
 Goal setting and revising: Every employee needs a clear understanding of expectations for their
work. They also need context, which includes an understanding of where they fit into the company and how
they contribute to the overall success of the organization. This starts with company and executive goal setting,
which cascades into manager, team, and individual goal setting. Aligning your entire workforce with higher
arching business goals sets clear priorities and direction, which ensures individuals, can feel ownership in the
business through individual objectives.
 Management and coaching: Though some goals may need adjusting, other times employees just
may not have the skills to reach them— yet. Performance appraisals were intended to identify gaps in
employee skill sets. But it’s self-defeating to identify the gaps without offering any type of solution. Improved
employee performance and engagement is a result of consistent feedback and coaching. It’s common to hire for
potential and not experience, so providing the proper training and development programs that address
performance and skill gaps is necessary.
 Development planning:‰ Employees need regular, quality feedback on their performance and
specific details on how they can improve. Once skill gaps are identified, employees have clear insight into the
skills they need to develop if they wish to progress in their career. Be sure that your workforce knows the
purpose of performance management is to aid in their development and give them control over their career
progression. Organizations that assign learning based on performance reviews see 38 percent better
engagement and 61 percent greater amount of positions with a ready and willing successor identified.
 Rewards and recognition: Recognition helps employees receive a balance of positive to negative
feedback. A little unexpected appreciation can go a long way. It satisfies our fundamental need for praise,
reinforces the right behaviors and culture, and leverages social engagement. Rewards and recognition can
improve employee retention and engagement, which creates ambassadors of your organization and its culture.
Performance management doesn’t end once a performance appraisal is delivered. Managers should take an
integrated approach to employee learning. This means creating development plans that support an
employee’s goals, career interests, and potential, as well as the organization’s business and talent needs.
Evaluation is only effective when used as a tool for growth and success.
To recap, ongoing performance management should produce
 Increased focus on driving business results. Since all goals are aligned, an employee’s day to day
work supports the company’s mission. This promotes year-round focus on key business results and driving
profitability.
 An empowered and engaged workforce. Companies can deepen employee engagement by creating
a culture of shared accountability for career growth and development.
 Foundational knowledge of talent. With insight into your workforce’s skills and abilities, you can
ensure all employees are getting the direction, feedback, and development they need to succeed. You can
identify high and low performers, and track and evaluate the effectiveness of employee development activities
Performance appraisal systems.
What are the different types of Performance Appraisal System?
Performance appraisal deals with how organizations evaluate and measures its employees achievements and
behaviors. It is an employee review by his manager where his work performance is evaluated and strengths
and weaknesses are identified so that the employee knows his improvement areas. Performance appraisal is
the right time to set new goals and objectives for the employees.

Before we look into the types of Performance appraisal system, let us check out the purpose of it.
What is the purpose of a performance appraisal system?
Take Note
Performance appraisal system allows the management categorize employees into

performers and non-performers. It is primarily done to estimate the employees’
worth.
There are different variations of performance appraisal systems. Let us list them down and see a bit of what
they are:
1. Behavioral checklist: Behavioral checklist has a list of criteria that an employee should workup to
be a diligent worker. The behaviors differ according to the type of job been assessed. This method is
considered favorable as the evaluation is done on the basis of individual employee performance
without comparisons.
2. 360 degree appraisal: 360 degree appraisal involves feedback of the manager, supervisor, team
members and any direct reports. In this method of appraisal, employees complete profile has to be
collected and assessed. In addition to evaluating the employees work performance and technical skill
set, an appraiser collects an in-depth feedback of the employee.
3. Management by objective: This is an objective type of evaluation which falls under modern
approach of performance appraisal. In MBO method of performance appraisal, manager and the
employee agree upon specific and obtainable goals with a set deadline. With this method, the
appraiser can define success and failure easily.
4. Psychological appraisals: This appraisal method evaluates the employees intellect, emotional
stability, analytical skills and other psychological traits. This method makes it easy for the manager in
placing the employees in appropriate teams.

1. Describe the various types of performance appraisals

2. Explain the concept of “ongoing performance management”
3. Analyze the importance of performance appraisal in a project
4. Highlight five Guidelines to Conduct Employee Performance
Appraisals
5. Explain the main outputs of an effective performance appraisal
REFERENCES


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Content Developed by: Dr.

Peter Nzuki and Josphat Wakori

SCHOOL OF OPEN AND DISTANCE LEARNING

DEPARTMENT OF OPEN LEARNING

LPM 312: PROJECT TOTAL QUALITY MANAGEMENT

DR. PETER NZUKI AND JOSPHAT WAKORI KAMAU

©University of Nairobi Page 1 of 115

©University of Nairobi Page 2 of 115

Expected Learning outcomes

At the end of this Course Unit, you should be able to:

©University of Nairobi Page 3 of 115

INTRODUCTION TO TOTAL QUALITY MANAGEMENT

Expected Learning Outcomes

At the end of this lecture, you should be able to:

1. Define a Total quality management(TQM)

Total Quality Management

©University of Nairobi Page 4 of 115

 Commitment by senior management and all employees

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Definition and Meaning of Total Quality Management (TQM)

1. Continuous Improvement (Kaizen)

3. Use of Quality Tools

6 Managing Supplier Quality

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Elements of Total Quality Management

(i) Management’s commitment to quality:

The levels of management and their functions are discussed below:

Top Level Management

 To lay down the policies and objective of the organization

(ii) Customer satisfaction

(iii) Preventing rather than detecting defects

(iv) Measurement of Quality

©University of Nairobi Page 9 of 115

(v) Continuous improvement:

(vi) Corrective action for root cause:

(viii) Recognition of high quality:

(ix) Involvement of Employees:

The Concept of Continuous Improvement by TQM

There are three major mechanisms of prevention:

1. Preventing mistakes (defects) from occurring (mistake-proofing or poka-yoke).

How to Measure the Quality of a Product by David Garvin

©University of Nairobi Page 11 of 115

What Do Customers Want?

Eight Criteria of Quality

©University of Nairobi Page 12 of 115

How to Apply Garvin’s Model to today.

©University of Nairobi Page 13 of 115

Practical Methods for Measuring Service Quality

SERVQUAL is based on five 5 elements of service quality:

©University of Nairobi Page 14 of 115

3. Post Service Rating

©University of Nairobi Page 15 of 115

Convenience and relevance are the main advantages.

6. Customer Effort Score (CES)

©University of Nairobi Page 16 of 115

Looking for better customer relationships?

7. Social Media Monitoring

8. Objective Service Metrics