Professional Documents
Culture Documents
Unit 3
Unit 3
Unit 3
Objectives
After reading this unit you should be able to understand to core values of
TQM:
• Compreherd the beliefs of TQM;
• Explain the importance of TQM;
• Understand the role of top Management in TQM;
• Examine the two Major building blocks of TQM : PDCA and Kaizen .
Structure
3.1 Introduction
3.2 Core Values of TQM
3.3 Total Quality Management Beliefs
3.4 Importance of TQM
3.5 Key Success Factors
3.6 Role of top Management in TQM
3.7 Plan-Do-Check-Act (PDCA) cycle
3.8 Kaizen
3.9 Summary
3.10 Key Words
3.11 Self-Assessment Questions
3.12 Further Readings
3.1 INTRODUCTION
It is crucial when an organization transitions from a functional type to a process
improvement type. Organizations have been built around functions for many
years. In reality, an organization develops a growing number of functions. A
functional organizational structure creates a kind of workplace where
opportunities for improvement are ignored. There is minimal need for original
thought after the roles are defined, the rules created, and the policies put into
place. Unlocking the brainpower of front-line employees is one of the most
challenging tasks facing modern enterprises. In this unit we try to explain the
core values of TQM, the reasons for the success of TQM and understand the
two key pillars of TQM, PDCA and Kaizen concepts.
Like other management approaches, TQM works better in some places than
others; it looks right to some people and wrong to others. To be realistic,
therefore, the manager should be aware of when and where things can go
wrong. The following are the major stumbling blocks which need to be
avoided:
• Overselling TQM
• Setting mediocre expectation
• Poorly or inadequate diagnosis of the situation
• Failing to train personnel
• Making continuous improvement too complex and unnatural
• Failing to recognize and celebrate successes
Some other stumbling blocks are also worth keeping in mind and these are
failure to make organized labour a partner in the pursuit of TQM, lack of
clarity about why the organization is going in a particular direction, mixed
signals from the top management, failure of some teams to “jell” etc. We will
now briefly examine the more common stumbling blocks.
• Synergy TQM
It is easy to get excited about TQM; there are great stories to tell about how
this approach to management has transformed some organizations. When you
hear these success stories in a congenial group, it is natural to catch some of
the enthusiasm. When we are enthusiastic and our colleagues or subordinates
are sceptical, there is a strong temptation to oversee to minimize the effort
required, to reap the benefits, and underestimate the time required to get the
system working. Even if we succeed in allaying their doubts, we pay a high
price in terms of credibility when our predictions fall short.
• Setting Average Goals
This is the other side of the coin: introducing change so gradually that it
almost seems like business as usual. If you ask me to increase my productivity
by 10 per cent, I can probably do that by working harder. However, if you
double my goals, I have to re examine my procedure and create a new one.
One essential objective of TQM is to encourage people to take a fresh look at
the systems they are using and to develop better ones. Inadequately diagnosis
of the present situation TQM would not work everywhere and the landscape
is littered with what some people euphemistically call “false starts”. Since
TQM is a major cultural change, the decision to go with it should be carefully
considered.
The most critical element, of course, is the solid commitment of top
management. TQM requires vision and the confidence that an initial
investment in planning and training will pay off in the long run, if not
immediately. In addition to having support from the top, you will want to ask 67
TQM: An Overview some questions from your own team: How do they react to change? How
much confidence do they have in your organization’s leadership? Which
aspects of TQM will make the most sense to them and which will be the most
puzzling and threatening? What particular competencies will they have to
learn?
Lack of Training
In some organizations TQM has been launched so rapidly that the training
programme has been started only after people have experienced failure. If
workers are expected to behave differently, they have to be trained. They
have to feel comfortable with new procedures and understand their
significance. We all like to feel competent and confident, on top of our jobs.
It is naive to assume that even bright workers knowhow to solve problems
systematically, or function effectively in groups.
Making Continuous Improvement Too Complex
Although continuous improvement (Kaizen) is a new phrase in the
management parlance, in some sense it just represents a philosophy that good
organizations have always followed. The elements of a continuous
improvement culture already exist. TQM managers simply highlight and
sharpen this process so that it has more power to shape behaviour. They set
measurable goals and plot their progress for meeting these goals.
Inconsistent Behaviour
Most of the TQM words and concepts make sense: empowerment, quality,
and teamwork. However, people in organizations have heard golden words
before and too often they have been disillusioned. Executives sometimes use
these words in speeches and newsletters to inspire the employees and
glamorize what maybe a drab and routine experience. In most organizations,
however, those who are not executives take the words with a grain of salt and
watch for actions. The slogan “walk your talk” has been popularized in the
recent past. Words and deeds must match. Failing to check on whether a target
has been reached, ignoring worker’s suggestions or handling a customer’s
complaint in a casual manner - any of these will undermine confidence in the
whole process.
Ignoring the efforts
Few things are more discouraging than to have our special efforts ignored or
taken for granted. If we are responsible employees we do the best job we can.
We do not usually expect or demand anything more than a pay check, but
when we get more recognition, it energizes us. It makes us feel differently
about ourselves and the organization we serve. On the other hand, if we or
our team succeed in solving a problem or setting a new record of productivity
and the effort goes unnoticed, we think twice about putting ourselves out
again. The disappointment is deepened, of course, if someone else gets the
credit for what we have done. Successful TQM managers make a special point
of letting their colleagues know how much they appreciate the goals that are
met and the break through that are received. One of the best-tested principles
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of psychology states: “Behaviour that is reinforced tends to be repeated” when Building Blocks of
TQM
people do the right thing, let them know it - and let them also know how
valued they are.
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Table 3.1 : The Five Ws and the One H Building Blocks of
TQM
WHO WHAT WHERE
4. Who else can do it? 4. What else can be done? 4. Where else can it
be done?
6. Are there any time 6. Is there waste checking 6. Is there any waste
wastes being in the way of thinking? checking in the
checked? method?
Too often, employees do not know what is expected of them or what they
should be reporting on because top management has failed to specify its control
items. It is also common for top management to issue directives without having
thought them through thoroughly, which can cause confusion and makes it
impossible to act in a real emergency. Control standards should be made
explicit.
The planning in the PDCA cycle is not something abstract that you do in your
head. The first step is to identify problems, look for their causes, and devise
means of rectifying them. This is planning.
The action in the PDCA circle is action to correct causes, not effects. For
example, in one plant it is found that a certain synthetic material is abnormally
71
TQM: An Overview hard. After the problem was traced back to an in correct combination of raw
materials, the correct proportions were restored and the problem was solved.
This is what is meant by action.
In another example, a certain process has maximum and minimum
temperatures. Adjustment, in other words control, is required to ensure that
the process temperature stays within these limits. It is simple to correct
deviations automatically with a rheostat or a pressure valve without ever
investigating what caused the temperature abnormality in the first place. The
ease of this kind of automatic control does not, however, mean that control
management is unnecessary. Even though adjustments are made to keep the
temperature within the acceptable limits, the cause of the problem may also
cause other problems and it needs to be investigated and corrected. This is
the CA of the PDCA circle.
From another angle, the PDCA cycle can be seen like this:
• The customer is given priority at the requirement stage.
• The customer asks for her/his needs/wants, so that they can be incorporated
at this initial stage.
• A specification is detailed, then designed and finally implemented. There
is scope to return constantly to the documented requirements, indeed to
the customers themselves, to ensure that the requirements have been met.
• This focus i.e., the design by doing it right-first-time so that re-design at
a later stage does not become necessary because the organization has
become alienated from the actual needs of the customer.
• The revised PDCA cycle is shown in Figure 3.4.
3.8 KAIZEN
Kaizen (meaning literally ‘continuous improvement’) is a Japanese word for
the philosophy that defines management’s role in continuously encouraging
and implementing small improvements involving everyone. It is the process
of continuous improvements in small increments that make the process more
efficient, effective, controllable, and adequate. Improvements are usually
accomplished at little or no expense without sophisticated techniques or
expensive equipment. It focuses on simplification by breaking down complex
processes into their sub-processes and then improving them.
The three main objectives of Kaizen are:
• Management practices, which must broaden its perspectives, while
increasing its involvement.
• Shifting values which are socially and culturally adrift as far as quality is
concerned.
• Organizational effectiveness: the agenda of leadership, motivation and
goal setting. Quality means a major transformation of attitudes. The
learning experience associated with attitudinal changes is painful, because
it means upturning established patterns of behaviour. Working towards
introducing quality has to be a rational decision adopted by each employee.
This can therefore be seen as a collective consciousness raising exercise
advocating the benefits, whilst highlighting the losses that lack of quality
can bring. Figure 3.5 shows the various aspects of the Kaizen principle.
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TQM: An Overview
INNOVATION KAIZEN
(characteristics) (characteristics)
Creativity Adaptability
3.9 SUMMARY
In this unit we concentrated on the building blocks of TQM, and focussed on
key success factors for TQM to work. We dealt in detail about the PDCA
cycle and the use and application of Kaizen. Kaizen can work across a diversity
of industries as well as a diversity of cultures. It does work, once it has been
fully understood and accepted. It requires full participation. In most
organizations, TQM represents a major cultural change - a change in the way
the organization defines itself, its priorities and values, and the way it deals
with its personnel, its customers and its suppliers. It embraces many long-
standing management concepts and strategies, which in combination produce
a very different way of operating an organization. Finally, TQM is not a
substitute for good management. TQM is a radically new way of managing
business, a way that challenges management’s traditional role, and demands
leadership and commitment. For many managers, that challenge may be too
difficult, and they may continue to look for the easy way out.