Dr.

SUMATHY MUNIAMUTHU
ASSOCIATE PROFESSOR
DEPT. OF MECH., ENGG.,
VEL TECH
CHENNAI 600 062.

TOPICS
Leadership -Strategic quality planning Quality statements

TQM Principles
International organisation for standardisation (ISO) had
established eight universally acceptable principles of
TQM.
Customer focussed organisation
Identification of customers (Internal and External)
Understanding stated and implied needs / expectations
Establishing measures of satisfaction customer needs
Determining

how far customers needs are being met at

presents.
Efficient processing of customer complaints
Establishing customer focus down the line including distributors
Seeking customer feedback to improve their satisfaction
Establishing customer supplier quality chain
Involve customers in the design of products / services.

TQM Principles
Leadership
Leadership

establish unity of purpose and direction

of the organisation.
Leadership should create and maintain the internal
environment in which people can become fully
involved in achieving the organisations objectives.
Leadership establish long term vision and strategy
Get support of others in a common vision by
appealing to their values, interest, hopes and dreams.
Search for challenging opportunities to change, grow,
innovate, and improve.
Experiment, take risk and learn from the mistakes

TQM Principles
Leadership (contd.)
Foster collabration by promoting co-operative goals

and buiding trust.

Strengthening others by sharing information and
power and increasing their discretion and visibility
Set an example by behaving in the ways that is
consistent with stated values.
Plan small wins that promote consistent progress and
build commitment.
Recognise individual contribution to the success of
every project
By forging employees into an empowered, highly
motivated team to give direction towards organisation
vision, mission and policy

TQM Principles
Involvement of people
People at all levels are the essence of an organization and their
full involvement enables their abilities to be used for the
organization's benefit.
Employees must be treated with dignity and respect
They must be trained to build competence where required
each employee must know what exactly is required to be done
and where possible must be able to assess the quality of his work
Fear must be totally removed from the organization and
employees must be encouraged to bring out weakness in the
system.
Empower employees to take appropriate action in their area of
work for improvement.
In case of a mistake examine the system rather than the man to
prevent its recurrence.
Involve employees in quality plans and draw upon their intimate
knowledge of processes for improvement.

TQM Principles
Involvement of people (contd.)
Assess employee satisfaction level and take appropriate
measures to improve their morale so that they take pride
in belonging to the company

The greatest contribution to the process of TQM are

made by the people
People share the vision, intellectual, capital and
knowledge
People are the more and more the true assets of any
organization
Total quality refers to the quality of human behaviour,
skills and commitment necessary to accomplish
organisational objectives.

TQM Principles
Process Orientation
A desired result is achieved more effectively when

related resources and activities are managed as a

process.
Planning of processes to meet customer
requirements
Process capability study and qualification of
process
Establishment of mechanism to keep process under
control
Ownership of process with full responsibility of
quality process orientation
Verification of product / service for conformance
Maintenance / calibration of process equipments
and instruments.

TQM Principles
System Approach to Management
Identifying, understanding and managing a system

of interrelated processes for a given objective

improves the organization's effectiveness and
efficiency.
Clear objectives.
Organisational structure with well defined authority
and responsibility
Planning for quality
Control of functions affecting quality
Co-ordinating of interrelated processes
Audit mechanism for self regulated organisation

TQM Principles
Continuous improvement
Continuous improvement should be permanent
objective of the organization
Measurement of quality

Analysis of quality data and investigations for non

confirmities
Seeking opportunities for improvement rather than
reacting to quality problems
Bench Marking
Organization for quality improvement like quality circles,
quality improvement teams for taking up specific projects
Review of quality improvement projects by top
management.
Recognition of significant achievements

TQM Principles
Factual Approach to Decision Making
Effective decisions are based on the analysis of data and
information
Recording of data on:
Quantitative production
Equipment failures
Process conditions
Delivery performance
Customer complaints
Quality costs
Supplier performance
Ensuring the data is accurate, reliable and accessible
Analysis of data to understand the impact on organizational
performance and cost implications and for deciding corrective
actions
Data on results of application of corrective actions

TQM Principles
Mutually beneficial supplier relationships
An organization and its suppliers are inter-dependent,
and a mutually beneficial relationship enhances the
ability of both to create value.
Consideration of quality capability while selective
vendors.
Specification of quality on purchase documents
Clear understanding of supplier needs

Mutual
trust
and
share
responsibility
and
accountability
Clear and open communication
Mutual commitment for continuous improvement

LEADERSHIP

Dr.SUMATHY MUNIAMUTHU
ASSOCIATE PROFESSOR
DEPT. OF MECH., ENGG.,
VEL TECH
CHENNAI 600 062.

Thinking through the organizations mission,

defining it and establishing it, clearly and visibly.

- Peter Drucker, 1966

Defining Leadership

Who is a Leader?
A Leader is a person, others opt to follow to a

place they would not have gone by themselves

- Joel Barker
A Leader as one who instills purposes, not one

who controls by brute force.

A leader strengths and inspires the followers to

accomplish shared goals.

-James MacGregor Burns

Role of a Leader in the

context of TQM:
Provide unquestioned leadership
Focus on customer results
Train all employees
Achieve and recognize employee participation
Communicate about quality both internally and

externally
Provide a quality process and quality tools.

Characteristics of Quality
Leaders
They give priority attention to external and

internal customers and their needs.

They empower, rather than control, subordinates.
They emphasize improvement rather than
maintenance.
They emphasize prevention.
They encourage collaboration rather than
competition.
They train and coach, rather than direct and
supervise.

Characteristics of Quality
Leaders
They learn from problems.
They continually try to improve

communication.
They continually demonstrate their
commitment to quality.
They choose suppliers on the basis of quality,
not price.
They establish organizational systems to
support the quality effort.
They encourage and recognize team effort.

Leadership Concepts
A leader understands that:
People need security and independence at the same
time.
People are sensitive to external rewards and
punishments and yet are also strongly self motivated.
People like to hear a kind word of praise. Catch people
doing something right so you can pat them on the back.
People can process only a few facts at a time; thus a
leader needs to keep things simple.
People trust their gut reaction more than statistical
data.
People distrust a leaders rhetoric if the words are
inconsistent with the leaders actions.

Senior management should practice the philosophy of

Management By Wandering Around (MBWA).
Delegate problem solving and decision making to the
lowest appropriate level and make the employees think for
themselves.
They should update the knowledge of quality concepts
by reading books and articles and attending seminars and
discussing with other TQM leaders. They should provide a
clear solution to the subordinates if they have any
difficulty in solving problems.

They should provide necessary resources to train the employees

in TQM tools and techniques, the technical requirements of the job
and safety.
They should establish the reward and recognition system and
should personally participate in the reward and recognition
ceremonies. This activity is an excellent opportunity to reinforce the
importance of the effort and promote TQM.
Senior managers should be visibly and actively engaged in the
quality improvement efforts. They should lead by demonstrating,
communicating and reinforcing the quality statements. In general
they should spend about one-third of their time on quality.

Role of Senior
They should listen to internal and external customers
Management
and suppliers through visits, focus groups and surveys.
Communication is an important role played by the

senior managers. They should create awareness of the

importance of TQM by selling themselves, in addition
to the internal efforts, there must be external activities
with customers, suppliers, the media, advertising in
trade magazines, and interaction with the quality
community.
By following the above suggestions, the senior
managers should be able to drive out fear out of the
organization, breakdown barriers, remove system road
blocks anticipate and minimize resistance to change
and in general change the culture.

STRATEGIC PLANNING

Dr.SUMATHY MUNIAMUTHU
ASSOCIATE PROFESSOR
DEPT. OF MECH., ENGG.,
VEL TECH
CHENNAI 600 062.

INTRODUCTION
Strategic Planning sets the long term

direction of the organization in which it

wants to proceed in future.

Present

Strategic Plan

Vision
of
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 acquistion, use and disposition of
these resources.
Ex., planned growth rate in sales,

diversification of business into new lines, type

of products to be offered.

STRATEGIC PLANNING PROCESS

(SEVEN STEPS TO STRATEGIC PLANNING)
In order to integrate quality with the strategic planning
process, a systematic and sequential procedure has to
be adopted.
Step 1
Customer Needs
The basic step is the identification of customers and their wants
and needs.
An organization must seek its customers requirements,
expectations and assess future trends before developing a
strategic plan.

STRATEGIC PLANNING PROCESS

Step 2
Customer position
The second step requires the planners to determine
its positioning with regards to its customers.
Various alternatives such as whether the
organisation should give up, maintain or expand
market position should be considered.
In order to become successful, the organisation
should concerntrate and consolidate its position in its
areas of excellence.

STRATEGIC PLANNING PROCESS

Step 3.
Predict the future
Next, the planners must predict future conditions that will
affect their product or service.
To help predicting the future, the tools such as
demographics, economic forecasts and technical
assessment or projections may be used.
Step 4.
Gap Analysis
The planners must identify the gaps between the current
state and the future state of the organisation.
This concept is also known as value stream mapping.
For identifying the gaps, an analysis of the core values
and concepts and other techniques may be used.

STRATEGIC PLANNING PROCESS

Step 5.
Closing the gaps
Now the planners should develop a specific plan to
close the gaps.
This process is also termed as process improvement.
By assessing the relative importance and relative
difficulty of each gap, planners can close the gaps.

STRATEGIC PLANNING PROCESS

STEP 6.
ALIGNMENT
Now the revised plan should be aligned with the mission,
vision and core values and concepts of the organization.
Organisation should embrace quality as an essential
ingredient in their vision, mission and objectives.

STEP 7.
IMPLEMENTATION
In order to implement the action plan, resources must be
allocated to collecting data, designing changes and
overcoming resistance to change.
Also the planners should monitor and assess the result of
the strategic plan.
Since quality is a continuous improvement process, one has
to reassess and renew the strategic plans periodically.
So, it is a cyclic process.

Customer needs
Customer positioning
Predict the future
Gap analysis
Closing the gap

Alignment
Implementation
Reevaluate and review

Strategic Planning Cycle

Quality Council

Develop, with input from all personnel, the core values,

vision statement, mission statement, and quality policy

statement.
Develop the strategic long term plan with goals and the
annual quality improvement program with objectives.
Create the total education and training plan.
Determine and continually monitor the cost of poor quality
Determine the performance measures for the organization,
approve those for the functional areas, and monitor them.
Continually determine those projects that improve the
processes, particularly those that affect external and internal
customer satisfaction.
Establish multifunctional project and department or work
group teams and monitor their progress.
Establish or revise the recognition and reward system to
account for the new way of doing business.

Quality statements
Part of strategic planning process

1.

Vision statement
-short declaration of what an organization
aspires to be tomorrow.
-guidelines for decision making
We will be the the preferred provider of safe, reliable
and cost effective products ans services that satisfy the
electric related needs of all customer segments.

Florida power and light

company

Quality statements
2. Mission statement
Answers the questions who we are, who are
the customers, what we do, and how we do it.
Provides clear statement of purpose for
employees, customers and suppliers.
To meet customers transportation and
distribution needs by being the best at moving
their goods on time, safely and damage free.
Canadian National Railways.

Quality statements
3. Quality policy statements
Guide for everyone in the organization as to how they
should provide products and service to the customers.
Written by CEO with feedback from the workforce and
be approved by the quality council.
Xerox is a quality company. Quality is the basic

business principle for Xerox. Quality means providing

our external and internal customers with innovative
products and services that fully satisfy their
requirements. Quality is the job of every employee.
Xerox Corporation