LEADERSHIP OF TQM

As Crosby says senior management is 100% responsible for the problem of quality and its
continuance. According to Harrington, between 70 and 85% of all errors can only be corrected
by management. Thus, it is important that top management understands TQM and leads the
organization through the TQM journey

DEMING’S 14 POINTS FOR TOP MANAGEMENT

1. Create Constancy of purpose for Improvement of Products and services

The top management must believe that their business will continue for 100 years. They will
invest in research to innovate new products and will train their employees without the fear of
loosing them.

2. Adapt the new philosophy

The new philosophy means elimination of wastes, delays and radically changing the work
culture. The new philosophy means Just-In-Time (JIT) manufacturing is possible with zero
defects.

3. Cease Dependence on Mass Inspection

Doing things right and doing it right the first time would reduce the dependence on inspection, in
fact it would be eliminated. TQM is aimed at eliminating inspection in the long run through
prevention.

4. End the Practice of Awarding Business on the Basis of Price Tag Alone

This point addresses supplier partnership. The supplier should be selected on the basis of the
following 4 parameters:

  Quality
  Price
  Delivery
  Service

Therefore price alone should not be the criterion for selection of supplier.

5. Constantly Improve the System of Production and Services

The processes in the organization need continuous improvement of processes so that

the quality of products and services improve continuously.

6. Institute Training

Management needs training to learn about the organization, all the way from incoming
material to the customer. Today every Japanese employee receives 6 weeks of training
 every year. This is the proof of Deming’s teachings and adoption of his concepts by the
Japanese.

7. Adopt and Institute Leadership

Deming urges that the senior employees must conduct themselves as leaders rather
than managers.

Leader Manager
Proactive Reactive
Coaches Finds fault
Understand Process Moves around Doesn’t care to understand Sits in his chair
Improve process Communicates frequently Maintain process Communicate rarely
Seeks suggestions Question

8. Drive Out Fear

Employees should be encouraged to suggest improvements and new ideas, ask questions
about the existing process, etc. This will stunt improvement. Fear is detrimental to improve on
processes.

9. Break down Barriers between Staff Areas

TQM dictates removal of barriers between the departments.

10. Eliminate Slogans, Exhortations and Targets for the Work Force

Here Deming talks about slogans and targets for increasing productivity. To achieve higher
productivity, the system has to be improved for which, management is responsible. The posters
are directed at the wrong people, family from the workers. They only generated ”frustration and
resentment” among workers. The best strategy for improvement is to correct defects in the
system, not slogan or posters.

11. (a) Eliminate Numerical Quota for the Work Force

(b) Eliminate Numerical Goals for people in Management

12. Remove Barriers that rob People of Pride of Workmanship

The organization should establish the right processes and a proper system for quality
management. This will lead to carrying out jobs correctly. If the work is carried out correctly, it
gives pride to those who did.

13. Encourage Education and Self-improvement for every One

Employees should be encouraged to pursue higher education and training while in service, for
improving the skills or updating knowledge.

14. Take Action to Accomplish the Transformation

The top management should understand the above 13 points and then enable their employees
to understand them. They should interpret the 13 points properly and educate their employees
appropriately.

TEN STRATEGIES FOR TOP MANAGEMENT

1. Proactive Management
o Proactive Management Needs Proper system
o TQM calls for proactive management
2. Adventurous and Bold Change Management
o Nobody likes change
o Change is essential
o Be adventurous
o Be bold
3. DIRFT- Do it Right First Time

-Take Right Decisions

-Why people don’t Do it Right the First Time?

1. The employee does not know what to do clearly, leave alone how to do!
2. If he knows how to do, he is not motivated to do it right
3. He does not have the necessary education or training to know
4. Probably his seniors have trained him the wrong way
5. He is not proud of the job he is doing
6. He does not get appreciated when he does it right

Not doing it right first time is going to cause hassles to every stakeholder. Therefore, it is
important to know how to make DIRFT happen.

Basic Requirements for DIRFT

 Right the First Time and Every Time

 Set Right Goals
 Select Right Personnel
 Establish right Processes Choose Durable Raw Materials
 Choose Right machinery

4. Continuous Preventive Action

o Prevention is Better than Cure
o One Shot Prevention is not Good enough
5. Care for Little things and Accumulate Gains
o Caring for Small Things
o Communicate with Junior Employees
o Keep on accumulating
6. Ensure economic Performance
o Importance of economic Performance
 o Quality should Increase Productivity Also
o Talk about Success in Economic Performance
o Stakeholders will Understand Economics Better

7. Management by walking around

8. Measures for Success

-Measures 3 Ps

Product Process
Personnel

9. Never rest on Past Laurels, Continue to Improve

- The Tail of Tortoise and Rabbit

10. Build a virtual Organization

-Requirements For Virtual Enterprise

1. Identify the most critical part/s

2. Identify the other parts
3. Develop/identify vendors for the other parts
4. Continuously increase sub-contracting