Total quality Management

Definition….

Total Quality Management (TQM) means making a business better by changing how things are done. It
helps a company compete and survive in a tough market. By changing how bosses lead, the whole
company can improve. TQM is mostly just doing things sensibly. It’s about making everything as good as
it can be, from how things are handled to the quality of what’s provided.

Basic Approach

TQM requires six basic concepts:

1. A committed and involved management to provide long-term top-to-bottom organizational

support.
2. An unwavering focus on the customer, both internally and externally.
3. Effective involvement and utilization of the entire work force.
4. Continuous improvement of the business and production process.
5. Treating suppliers as partners.
6. Establish performance measures for the processes.

Gurus of tqm.

Juran.

Joseph M. Juran worked at Western Electric and learned about quality concepts from Shewhart. He went
to Japan in 1954 to teach about quality management. Juran stressed that everyone in management
needs to be dedicated and involved in improving quality. He suggested making changes that give big
results compared to the effort. Juran developed a way called the Juran Trilogy to manage quality using
planning, control, and improvement. In 1951, he published "Juran’s Quality Control Handbook."..

Crosby.

Phillip B. Crosby wrote a book in 1979 called "Quality is Free," which became very popular and changed
how bosses thought about quality. He said it's cheaper to do things right the first time than fixing
mistakes later. In 1984, he wrote another book called "Quality Without Tears." In it, he talked about four
important rules for managing quality: making sure things meet the requirements, preventing mistakes
rather than just finding them, aiming for zero defects, and measuring quality by the cost of mistakes.

Taguchi.

Genichi Taguchi, who had a PhD, came up with a way to measure how much something costs when it
doesn't meet the goal and has too much variation. He also made a way to predict and prevent problems
before they happen. He believed in making things strong and reliable by setting them up well from the
start. He used simpler methods from regular experiments to explain these ideas, which you can find in
Chapter 16.

Deming.
W. Edwards Deming, who learned a lot from Shewhart, taught Japanese business leaders about
controlling processes with statistics and why quality matters in 1950. He's known for helping Japan
become a strong economic force through quality improvements. Deming is famous for his 14 rules that
help managers make things better in terms of quality, productivity, and competition. He wrote books like
"Out of the Crisis" and "Quality, Productivity, and Competitive Position," and did many studies to help
people understand these ideas. You can learn more about his 14 points in Chapter 2.

Chptr 2

Leadership

Defining leadership is tricky because it means different things to different people. Some say a leader is
someone who inspires and guides others toward common goals, not just bossing them around. Leaders
shape, support, and show by example what an organization believes in. According to experts like James
MacGregor Burns and Daimler Chrysler's CEO Bob Eaton, leadership involves lifting everyone's spirits and
abilities to higher levels, making it about teamwork, purpose, vision, and community rather than just one
person's authority. Essentially, leadership is hard to put into simple words—it's about big ideas and
making everyone better.

The 7 Habits of Highly Effective People.

1) be proactive

Being proactive means taking charge of your life by choosing how to react to situations based on your
values, rather than letting emotions control you. Reactive people respond based on how they feel, while
proactive people make thoughtful choices based on their beliefs. It's not what happens to us that
matters most, but how we respond. For instance, instead of saying "There’s nothing I can do," a proactive
approach involves looking at options. It's about controlling our reactions and choices rather than
blaming others or circumstances.

2)begin with the end in mind.

Beginning with the end in mind means thinking about what you want in life before starting anything. It's
like having a plan or picture of where you want to go. Just like you create a blueprint before building a
house, you can create a vision for your whole life. This habit is about making sure what you do matches
what's really important to you. It's about doing the right things first (like leadership) before doing things
right (like managing tasks). To do this, you can create your own personal rules or beliefs, like always
being honest, staying positive, exercising, learning from mistakes, and helping others succeed. When we
focus on these important principles, we build a strong foundation for a good life, with things like security,
wisdom, and guidance. These principles are like strong threads weaving through everything we do.

3)put first thing first.

putting first things first means organizing your time wisely by focusing on what's really important, not
just what's urgent. It's like being the boss of your schedule and making sure you spend most of your time
on tasks that help you achieve your goals. This habit helps you plan your week by listing your different
roles (like being a manager, a parent, etc.), setting goals for each role that match your bigger vision,
scheduling time to achieve these goals, and adjusting your daily plans to make sure you're working
toward what truly matters to you.

4) think win win.

Sure, Win-Win is about making deals or agreements where both sides feel good. It's not just about
winning for yourself but making sure everyone benefits. To achieve this, it's important to have integrity,
trust in relationships, clear agreements focusing on what both want, systems that support this way of
thinking, and a problem-solving process. This process involves understanding each other's views, figuring
out the most important things, agreeing on fair results, and finding new ways to reach those goals that
work for everyone involved. It's about finding solutions that make everyone happy and work well in the
long run.

5) seek first to understand then to understood.

Sure, Habit 5 is about changing how we normally communicate. Instead of trying to make others
understand us first, it's about listening to them first. This kind of listening, called Empathic Listening,
means really trying to understand how someone else feels and sees things. It's not about agreeing with
them, but about truly getting their emotions and thoughts. Covey, the author, also talks about being
understood. He uses three words—ethos, pathos, and logos—to explain this. Ethos is about your
character, pathos is about understanding others, and logos is about using logic in what you say. Basically,
it's about listening first and then trying to explain yourself in a way that makes sense to others.

6) synergy

Sure, Habit 6: Synergy means that together, we achieve more than we can alone. It's like how The
Beatles created more music as a group than they did individually. Synergy happens when we work
together, using Win/Win thinking and good communication, to solve tough problems creatively. It's
about understanding each other and finding solutions that are better than what we could do alone.

7) sharpen the saw(renewal)

Habit 7: Sharpen the Saw means taking care of yourself to be better overall. It's about renewing your
physical, spiritual, mental, and social/emotional well-being. This involves good nutrition, exercise, rest,
and relaxation for the physical aspect; prayer, meditation, and sticking to your values for the spiritual
side; learning through reading and seminars for the mental part. And finally, maintaining healthy
relationships for emotional wellness. It's about finding balance and growth in all these areas to be your
best self.

The Deming philosophy.

Deming’s philosophy, outlined in 14 points, was shared with Japanese industry leaders in 1950. These
points evolved over three decades, emphasizing principles for effective management and continuous
improvement.
Here's the 14 points of Deming philosophy

1. **Define Goals:** Clearly state what the organization aims to achieve and involve everyone in
planning for the long term.

2. **Continuous Improvement:** Focus on constant quality improvement, involve everyone, and

prioritize customer satisfaction.

3. **Inspection’s Purpose:** Understand that inspection aims to enhance processes and reduce costs,
relying more on ongoing improvements than mass inspection.

4. **Quality over Price:** Stop choosing suppliers solely based on price; prioritize quality, loyalty, and
trust for long-term relationships.

5. **Perpetual System Enhancement:** Take responsibility for problem-solving, reduce variation, and
constantly improve the system.

6. **Invest in Training:** Train employees thoroughly, emphasizing continuous improvement.

7. **Develop Leadership:** Train supervisors, foster a positive work environment, and ensure clear
communication.

8. **Eliminate Fear, Promote Trust:** Create a supportive environment, eliminate fear, and encourage
innovation.

9. **Team Optimization:** Remove internal and external barriers by optimizing teamwork and
communication.

10. **Avoid Empty Demands:** Don’t demand increased productivity without providing the necessary
tools and methods.

11. **Remove Quotas and Management by Objective:** Focus on improvement methods and
understand processes rather than setting numerical goals.

12. **Restore Pride in Workmanship:** Eliminate factors that diminish pride in work, provide adequate
training and tools, and emphasize employees’ role in the organization.

13. **Encourage Education:** Promote continuous education and training based on the organization’s
mission and principles.

14. **Take Action for Change:** Management needs to lead the transformation, commit to change, and
actively implement the new philosophy.

Service quality.

Improving service quality is trickier than improving production quality. Deming, Juran, and others have
helped manufacturing, but service industries are slower to adopt these changes. Customer service
includes activities that aim to satisfy customers before, during, or after a sale.

*Organization
*Customer care

*Communication

*Front line people

*Leadership.

**Employee involvement** means letting employees share their ideas, be part of making decisions, and
join in different parts of the company. When they’re involved, they feel connected to the company’s
goals and work harder to help it succeed.

**Customer satisfaction** is when customers are really happy with what they buy or the services they
get. It’s about understanding what they want, giving them great products or services, being helpful
before, during, and after their purchase, and making them feel good about choosing your company.
Happy customers often come back and tell others about their good experiences.

**Employee satisfaction** is about how happy and content employees are at work. It’s influenced by
things like being treated fairly, getting recognized for their work, having chances to grow, having a good
balance between work and personal life, being in a positive work environment, and feeling valued by the
company. When employees are happy, they tend to work better, are more productive, and help make
customers happy too.

**Maslow’s Hierarchy of Needs:**

This theory by Abraham Maslow suggests that people have five levels of needs – survival, security,
social, esteem, and self-actualization. It starts with basic things like food and safety, moves on to social
belongingness, then self-esteem, and finally reaching one’s full potential. When one level is satisfied, it
no longer motivates a person. For example, a safe workplace and feeling valued at work help motivate
employees.

**Herzberg’s Two-Factor Theory:**

Frederick Herzberg’s theory found that certain things at work motivate (like recognition, responsibility,
and achievement), labeled as motivators. He also found that bad feelings at work (like low salary and
poor working conditions) cause dissatisfaction, called dissatisfiers or hygiene factors. Fixing dissatisfiers
prevents unhappiness, while motivators lead to strong motivation and good performance. Fixing
dissatisfiers is important before motivators can truly boost motivation.

*Empowerment
Empowerment means giving people the authority and confidence to take responsibility for improving
processes, meeting customer needs, and achieving organizational goals. It’s about providing an
environment where individuals have the ability, confidence, and commitment to make decisions and
take ownership within specific boundaries.

To create an empowered environment, three things are crucial:

1. **Understanding the Need for Change:** People fear change, so explaining why change is necessary
and their role in it is crucial. Experienced and educated individuals are more likely to accept increased
responsibilities.

2. **Changing the System:** The system must support individual and group achievements, allowing
freedom to act and sometimes fail, while also considering contextual factors like union involvement and
industry type.

3. **Enabling Employees:** Providing information, education, and skills is essential. Without the tools
for change, resistance increases. Companies focusing on customization are more likely to embrace
empowerment compared to those aiming for low-cost, high-volume strategies.

Empowerment isn’t mysterious; people generally want more control in their jobs, just like they do in
their personal lives. When provided with the necessary information, education, and skills, along with
understanding their empowerment boundaries and the need for change, resistance to change decreases.

A survey showed that empowered employees feel confident to stop work, intervene for customers, make
exceptions to procedures, rework products, and sometimes even refund money or authorize credits.

**Teams**

are groups of people working together toward common goals. Teamwork involves individuals putting
aside personal interests to achieve shared objectives, like solving problems, improving processes, or
satisfying customers. To succeed, teams need clear objectives, resources, a systematic approach,
effective communication, and creative conflict resolution.

**Why Teams Work:**

- **Collective Knowledge:** Many heads are better than one, each team member contributes unique
abilities to solve complex problems.

- **Synergy:** Together, teams achieve more than individual contributions.

- **Rapport:** Team interaction fosters better job performance.

- **Communication:** Teams improve communication, leading to better solutions.

**Types of Teams:**

1. **Process Improvement Team:** Focuses on improving a specific process, usually with members from
that work unit.

2. **Cross-Functional Team:** Includes members from different departments or functions, tackling

broader issues.

3. **Natural Work Teams:** Consists of all members of a work unit, not voluntary, and selected projects
are managed by the team and chosen by management.

4. **Self-Directed/Self-Managed Work Teams:** Similar to natural teams but without a supervisor,

responsible for managing their work and decisions through consensus.