TQM Leadership

Learning Outcomes
 Deming’s 14 Points for Management
 Quality Statements (Vision, Mission and Quality Policy Statements)
 Strategic Planning Process
 Quality Council

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 Deming’s 14 Points for Management
Point 1: Create constancy of purpose for continual improvement of product and
service
Point 2: Adapt the new philosophy
Point 3: Cease dependence on inspection
Point 4: End the practice of awarding business on the basis of price tag alone
Point 5: Improve constantly and forever the system
Point 6: Institute training
Point 7: Institute leadership
Point 8: Drive out fear. Create trust. Create a climate for innovation
Point 9: Break down barriers between departments and individuals
Point 10: Eliminate exhortations for the workforce
Point 11: Eliminate numerical quotas for the workforce
Point 12: Remove barriers that rob people of pride of workmanship
Point 13: Encourage education and self-improvement for everyone
Point 14: Take action to accomplish the transformation

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 Quality Statements
 Quality statements are established by the quality council to provide overall
direction for achieving the total quality culture.
 Three elements of quality statements are:
1. Vision statement,
2. Mission statement, and
3. Quality policy statement.

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 Vision Statement
 The vision statement is a short declaration of what on organisation aspires to be
in the very long-term future.
 Vision statements describes where leadership sees the organisation in the future.
 A vision describes aspirations for the future, without specifying the means that
will be used to achieve those desired ends.
 Examples of vision statements:
1. ““To enhance the wealth generating capability of an enterprise in a globalizing environment,
delivering superior and sustainable stakeholder value.” – ITC Limited
2. “Our mission is to bring healthcare of International standards within the reach of every
individuals. We are committed to the achievement and maintenance of excellence in education,
research and healthcare for the benefit of humanity.” – Apollo Hospitals

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 Mission Statement
 The mission statement, is usually one paragraph, describes the function of the
organisation. It provides a clear statement of purpose for employees, customers,
and suppliers.
 The mission statement answers the following questions: who we are?; who are
the customers?; what we do?; and how we do it?.
 Examples of mission statements:
1. “Sustain ITC’s position as one of India’s most valuable corporations through world class
performance, creating growing value for the Indian economy and the Company’s stakeholders.”
– ITC Limited
2. “Apollo’s vision for the next phase of development is to ‘Touch a Billion Lives’.”
– Apollo Hospitals

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 Quality Policy Statement
 The quality policy is a guide for everyone in the organisation as to how they
provide products and service to the customers.
 It is used as a guide to managerial action.
 ISO 9000, the international standard for quality assurance, requires a quality
policy as a declaration of intent to meet the needs of customers.
 Example of quality policy statement:
“Reliance is committed to meeting customer requirements through continual improvement of its
quality management systems. Reliance shall sustain organization excellence through visionary
leadership and innovative efforts.” –Reliance Industries Limited

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 Strategic Planning

 Strategic planning sets the long-term direction of the organisation in which it

wants to proceed in future.

 Definition: Strategic planning can be defined as the process of deciding on objectives of the
organisation, on changes on these objective, on the resource used to attain these objectives and
on the policies that are to govern the acquisition, use and disposition of these resources.”

 Examples of strategic planning in an organization may be: planned growth rate in sales,
diversification of business into new lines, type of products to be offered, and so on.

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Strategic Planning Process

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 Quality Council

 A quality council is a team to provide overall direction for achieving the total quality
culture (TQC).
 A quality council is a team formed in the organisation with an objective of building
quality into the culture of the organisation.
 The quality council is composed of:
(i) the chief executive officer (CEO);
(ii) the senior managers of the functional areas, such as design, marketing, finance,
production, and quality; and
(iii) a quality council coordinator or consultant.
 Quality councils are the instruments for creating the idea of never-ending quality
improvement. In other words, TQC is the driver for the TQM engine.

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 Duties of Quality Council

1. To establish the core values and quality statements. Quality statements include vision
statement, mission statement, and quality policy statement.
2. To establish the strategic long-term plan with goals and the annual quality
improvement program with objectives.
3. To plan the training and education programmes.
4. To determine and monitor the cost of poor quality.
5. To perform and monitor the performance measures for each functional areas of the
organisation.
6. To determine continually those projects that improve the processes, particularly those
that affect external and internal customer satisfaction.
7. To establish multifunctional project and departmental teams and monitor their
progress.
8. To establish/revise the recognition and reward system periodically.
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Quality Structure

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 Recap
Now you should be able to answer the following questions:
1. Explain the fourteen steps of Deming’s philosophy for improving quality,
productivity and competitiveness.
2. Describe the various quality statements. Give examples.
3. What is strategic planning? Explain the step by step procedure of strategic
quality planning?
4. Discuss the role and contributions of quality council.

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End of Presentation

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