CHAPTER 7 :TQM Principles & Practices

ContentsContents

• Continuous improvement

• Employee empowerment

• Leadership and change

• Teamwork in industrial practices

Continuous ImprovementContinuous Improvement

A kaizen is any planned action that causes a Current State to become outdated and that causes the productivity to permanently change for good.

Continuous ImprovementContinuous Improvement

for good.

Kaizen activities can be implemented by a team or an individual, depending on the priority and size of the event.

• Kaizen literally means gradual, continuous improvement, mainly in small matters, in all aspects of working life.

• Kaizen begins with the recognition that any corporation can have problems and improvements corporation can have problems and improvements can be made as long as perfection is lacking.

• The Kaizen approach can help towards the continuous improvement movement by contributing small changes through out the organization.

Every Kaizen should have a positive Productivity impact:

Doing more; Using less. When a Kaizen is finished, you should be able to point to something real and say:

Plus ProductivityPlus Productivity

real and say:• This is what I am doing today that I couldn't do yesterday (doing more). • Alternatively, you should be able to identify a resource that you don't use today but that you thought you needed yesterday (using less).

The best Kaizen result is when I can do both.

• Kaizen is a fundamental of Total Quality• “Competing in a global marketplace is like

running in an Olympics” – must keep running and last year record is – must keep running and last year record is

to be broken this year.– Athletes who don’t improve continually will

not remain long in winner’s circle– Same goes to the company

Essential improvement activitiesEssential improvement activities• Quality expert recommends 5 activities as a crucial to

continuous improvement. There are in Figure 19-1;

Steps of applying KaizenSteps of applying Kaizen

1. Finding out the pain areas (problem areas)2. Analyses the pain (problems)3. Large scale preplanning and extensive

project scheduling are replaced by smaller project scheduling are replaced by smaller experiments

What are the 3M’S ?What are the 3M’S ?

• Kaizen is meant to remove Mura, Muda , Muri (3M)•• MudaMuda - Any wasteful activity or any obstruction to the

smooth flow of an activity.• Activity = Work + Muda• Expenditure = Cost + waste • Expenditure = Cost + waste

•• Mura Mura - Inconsistencies in the system•• MuriMuri - Physical Strain

• Pushed to work• Overburdened

• Kaizen is meant to remove Mura, Muda , Muri

Standard Process Improvement StrategiesStandard Process Improvement Strategies

Reduce sources of

variation

Bringthe process under SPC

Improve the design

the process

Describethe process

Standardizethe process

Eliminate errors

the process

Simplifythe process

Elements of KaizenElements of Kaizen

• Figure 19-4

Kaizen implementation toolsKaizen implementation tools

• Some additional tools instead of quality tools explained in this course.

• Kaizen Tools are;1.1. Kaizen checklistKaizen checklist1.1. Kaizen checklistKaizen checklist2.2. Kaizen FiveKaizen Five--Step plan (5S)Step plan (5S)3.3. Five W’s and One HFive W’s and One H4.4. FiveFive--M checklistM checklist

1. Kaizen Checklist1. Kaizen Checklist

• Using checklist that focuses attention of employees on those factors that are most likely in need of improvement.

– E.g; work methods, facilities, software tools – E.g; work methods, facilities, software tools etc

• Figure 19-5

2. Kaizen 52. Kaizen 5--step plan (5S)step plan (5S)

• Japanese approach to implement kaizen• Using posters on the walls with the word 5S

•• Seiri Seiri (Straighten up) or sort- Clearly distinguish needed items from unneeded

(remove what is not needed and keep what is needed)

•• SeitonSeiton (Put things in order) or set•• SeitonSeiton (Put things in order) or set- Keep needed items in the correct place. Place

things in such a way that they are easy accessible whenever they are needed

•• SeisoSeiso (Clean up) or shine- Keep the workplace neat and clean

•• SeiketsuSeiketsu (Personal cleanliness) or standardize- Establish schedules and methods of performing

cleaning and sorting•• ShitsukeShitsuke (Discipline) or sustain

- Maintain established procedures. Commitment - Maintain established procedures. Commitment and self-discipline

3. Five W’s and One H3. Five W’s and One H

WHOWHOWHATWHAT

WHEREWHEREWHEREWHEREWHENWHENWHYWHYHOWHOW

• Using this tool encourages employees to look at a process and ask questions;– Who is doing it?– Who should do it?– What is being done?– What should be done?– What should be done?– Where is it being done?– Where should it be done?– Why is it being done?– Why is it that way?– When is it being done?– When should it be done?– How it is being done?– How should it be done?

4. Five4. Five--M checklistM checklist

Methods

Measurement

Man(Operator)

Machine

Material

Employee EmpowermentEmployee Empowerment

Employee empowermentEmployee empowerment

• Empowerment means engaging employees in thinking processes of an organization in ways that matter.

• Also means having input that is heard and • Also means having input that is heard and used – giving ownership of the job.

Rationale :• Best way to increase creative thinking and

initiative on the part of employees.• Can be an outstanding motivator

Employee empowermentEmployee empowerment

• Can be an outstanding motivator

Issues :• Resistance to change

Implementation of employee empowerment has 4 steps;

1. Creating a supportive environments2. Targeting and overcoming

Employee empowermentEmployee empowerment

2. Targeting and overcoming3. Putting the vehicles in place

(Vehicles = brainstorming, quality circles, suggestion boxes etc)

4. Assessing, adjusting and improving

Leadership and ChangeLeadership and Change

The foundation for TQM is indeed leadership, and leadership has several functions:

1. Create a vision and establish a mission for the organization

2. Set realistic quality improvement goals

Leadership and changeLeadership and change

2. Set realistic quality improvement goals 3. Identify customer requirements 4. Lead the culture change to a team environment 5. Active participation on strategic planning and/or

quality committees 6. Lead the improvement effort

1.1. Create a Vision and Establish a Mission for Create a Vision and Establish a Mission for the Organization the Organization • The two essential elements of leadership are

developing a compelling vision and (more developing a compelling vision and (more importantly) living it

• It is the job of a leader to instill confidence and build self-esteem of every employee

2.2. Set Realistic Quality Improvement Goals Set Realistic Quality Improvement Goals • The foundation for improvement is laid only

when the people who do the work learn to solve their own problems instead of passing the bucktheir own problems instead of passing the buck

• To get that ownership, however, the leader must set goals that are realistic (i.e. attainable, doable, and within the constraints of both the individuals involved and the organization)

3.3. Identify Customer Requirements Identify Customer Requirements • Just providing a product and/or service is not

good enough anymore• What good leaders do for their organization is to • What good leaders do for their organization is to

find ways to surprise and delight the customer with their products and/or their service

4.4. Lead the Culture Change to a Team Lead the Culture Change to a Team Environment Environment • The key to motivate everyone in the organization

for a culture change, is to ensure everyone's for a culture change, is to ensure everyone's involvement in the process.

• How do we do this? • By giving them a sense of ownership and

empowering them to make decision. • Positive reinforcement

5.5. Active Participation on Active Participation on Strategic Planning Strategic Planning and/or and/or Quality Committees Quality Committees – To unleash the creativity of the organization,

leaders must change the organizational culture and structure to encourage innovation and creativitystructure to encourage innovation and creativity

– They must actively participate on everything that has to do with quality and/or improvement

– By being participative, leaders encourage others to do the same

– As a consequence, the results of this participation will be more diverse ideas, more discussion of ideas

A.A. Strategic Planning Strategic Planning Seven Steps to Strategic Planning:

1. Customer Needs: to discover the future needs of the customers of the customers

2. Customer Positioning: the planners determine where the organization wants to be in relation to the customers

3. Predict the Future: to predict future conditions that will affect their product or service

4. Gap Analysis: identify the gaps between the current state and the future state of the organization

5. Closing the Gap: by establishing goals and and responsibilities. All stakeholders should be responsibilities. All stakeholders should be included in the development of the plan

6. Alignment: it must be aligned with the mission, vision, and core values of the organization

7. Implementation: resources must be allocated to collecting data, designing changes, and overcoming resistance to change. Also part of this step is the monitoring activity to ensure that progress is being madeprogress is being made

B.B. Quality Committees Quality Committees • In typical organization, the committees is

composed of the CEO; senior managers of the functional areas: such as design, marketing, finance, production, and quality; and a coordinator finance, production, and quality; and a coordinator or consultant

• In general, the duties of the committees are to: 1. Develop, with input from all personnel, the core values,

vision statement, mission statement, and quality policy statement

2. Develop the strategic long-term plan with goals and the annual quality improvement program with objectives

3. Create the total education and training plan 4. Determine and continually monitor the cost of poor

quality 5. Determine the performance measures for the

organization, approve those for the functional areas, and monitor them. monitor them.

6. Continually determine those projects that improve the processes, particularly those that affect external and internal customer satisfaction.

7. Establish multifunctional project and work group teams and monitor their progress

8. Establish or revise the recognition and reward system to account for the new way of doing business.

6.6. Lead the Improvement Effort Lead the Improvement Effort Leaders must: • provide the opportunity to form teams • recognize the need for both education and • recognize the need for both education and

training, and provide both to the employees • empower the employees to resolve issues

effecting their own work • encourage the employees to participate

without fear • listen and then listen some more

• provide timely feedback • support, direct, coach the employees • communicate with everyone in the organization

(vertically and horizontally) (vertically and horizontally) • apply the Plan-Do-Check (Study)-Act model as

much as possible in everything within the organization

• reward and recognize the employees for teamwork, improvement, performance, and contribution to quality

Teamwork in Industrial

Practices

• To become successful in business, teamwork is also a key element of TQM

• With the use of teams, the business will receive quicker and better solutions to problems

Teamwork in Industrial PracticesTeamwork in Industrial Practices

quicker and better solutions to problems• Teams also provide more permanent

improvements in processes and operations. • In teams, people are more comfortable bringing

up problems that may occur, and can get help from other workers to find solutions and put into place.

There are mainly three types of teams that TQM organizations adopt:

• Quality Improvement Teams or Excellence Teams (QITs) (QITs)

• Problem Solving Teams (PST) • Natural Work Teams (NWT)

1.1. Quality Improvement Teams or Excellence Quality Improvement Teams or Excellence Teams (QITs) Teams (QITs) • These are temporary teams with the purpose

of dealing with specific problems that often re-of dealing with specific problems that often re-occur

• These teams are set up for period of three to twelve months

2.2. Problem Solving Teams (PST) Problem Solving Teams (PST) • These are temporary teams to solve certain

problems and also to identify and overcome causes of the problems.

• They generally last from one week to three months.

3.3. Natural Work Teams (NWT)Natural Work Teams (NWT)• These teams consist of small groups of skilled

workers who shared tasks and responsibilities• These teams use concepts such as employee • These teams use concepts such as employee

involvement teams, self-managing teams and quality circles

• These teams generally work for one to two hours a week

Quality Circle Quality Circle • Quality circle is a small group of employees in the

same work area or doing a similar type of work who voluntarily meet regularly for about an hour every week to identify, analyze and resolve work-related week to identify, analyze and resolve work-related problems, leading to improvement in their performance, and enrichment for their work life

• It can be seen that the concept of quality circles is just one segment of TQM. TQM is not complete without quality circles

The basic aims of quality circles are : • To contribute to the improvement and

development of the enterprise• To respect humanity and build a better workshop. • To respect humanity and build a better workshop. • To satisfy the higher human needs of recognition

and self-development• Natural Work Team ( NWT ) is sometimes referred

to as Quality Circles

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