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Chapter 4 To 6 (Merge)

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TQM CHAPTER 4

Kaizen is a philosophy that calls for people and their organization to experience ongoing
improvement at every level. Through focusing on small incremental change rather than dramatic
innovation, Kaizen seeks to construct effective and efficient processes and quality outputs.

Kaizen at the workplace means continuing improvement involving everyone, managers


and workers alike. The kaizen business strategy involves everyone in an organization working
together to make improvements without large capital investments.

KAIZEN CONCEPTS
Kaizen is a Japanese word meaning continuous improvement. It is made up of two
characters which are “Kai” meaning “change” and “Zen” which means “Good”. It is used to
describe a company culture where everyone, from the CEO to the front desk clerk, regularly
evaluates his work and thinks of ways to improve it. The concept is the small steps on a
customary basis will lead to large improvements in due course. Kaizen entails relatively little
expense.

Kaizen originated in Japan as a result of World War ll. Ironically, it evolved in part from
american business leaders like Dr. W. Edwards Deming who came to help restore the country. It
was first introduced by a 1951 training film created by the American Economic and Scientific
Section (ESS), Although Dr.Deming is largely credited for instituting the principles of Kaizen in
Japan. Kaizens’s elimination of waste through the maintenance and improvement of processes
became fundamental to japanese management philosophy. It has since stretched around the
world to companies and organizations wishing to follow the success of Japanese business.

Toyota has been known as the initial company that has started Kaizen. The application
that Toyota uses was called “Toyota Production System”. Where all line personnel are expected
to discontinue their moving production line in the case of any irregularity, and suggestions for
improvement are awarded reward. They succeeded in eradicating all the wastes. Kaizen is used
for placing the term as productivity, total quality control (TQC), Zero defects (ZD), and
Just-In-Time (JIT). Therefore, Kaizen is a main concept for all these practices.

A lot of people have misunderstood Kaizen. People have the stereotype that kaizen can
be dramatically changed immediately, and bring the profits right away. however , this is not true.
Improvements under Kaizen are small and incremental, but the kaizen will bring the huge
results overtime. Japanese management and Western management are different from the
concept of the management. For Western management, they are inclined to focus on the
worship of innovation which is pretty much relying on the changes in the technological
breakthroughs. On the other hand, for the Japanese Management, Kaizen is not usually a
remarkable incident. However innovation is one shot improvement, and its consequences are
often problematic. While the kaizen process, which is based on common sense, low
cost-approaches and low risk approach, guarantees gradual progress that pays off overtime.
There are two types of kaizen which are Gemba (actual workplace) kaizen and train
(plan) kaizen. Gemba and teian kaizen both intend to develop higher production and quality
standards. Gemba kaizen is an action-oriented approach and refers to improvement activities
that are carried out in the actual workplace, like on the shop floor or on the manufactucturing
line. Gemba kaizen involves all aspects of daily work that can be improved. The heart of gemba
kaizen lies on small changes that will transform the overall success of the company not
automatically right away but in the long run. Gemba kaizen methods are quality circles and
suggestion systems. In a quality circle, a specialized team develops and designs ideas
concerning how to improve the company’s performance. Suggestion system encourages
employees to submit suggestions for improving work processes and customer satisfaction.
Teian kaizen, on the other hand, represents a theory based on approach and refers to strategic
improvements that are prejudiced by top management. Here, the implementation of latest
processes and practices play the most dominant role. The overall goals of train kaizen are
improved including total quality control and just-in-time management.

Kaizen and Management


It is also essential that management is trained and be behind the effort. Kaizen will result
in many more suggestions for improvement and changes and will take away from a strict focus
on moving items quickly through the existing production process. Management must be
prepared to recognize some time away from current work to focus on changes with longer-range
impact.

Management has two major components which are maintenance, and improvement. The
objective of the maintenance function is to maintain current technological, managerial, and
operating standards. The improvement function is aimed at improving current standards. Under
the maintenance function the management must first establish policies, rules, directives, and
standard operating procedures (SOPs) and then work towards ensuring that everybody follows
SOP. The latter is achieved through a combination of discipline and human resource
development measures.

Under the improvement function, management works constantly towards modifying the
existing standards, once they have been mastered, and establishing higher ones. Improvement
can be broken down between innovation and Kaizen. Innovation involves a drastic improvement
in the existing process and requires large investment and big efforts. Kaizen signifies small
improvements as a result of coordinated continuous efforts by all employees.

Initiating and implementing TQM programs need a great quantity of planning and
research. Managers are required to acquire training in various TQm practices prior to
implementing the same. There are costs involved with the whole process of TQM. It is the
manager’s responsibility to distribute budgets for TQM at the beginning of every financial year.

A manager needs to work closely with the senior management, human resource
professionals to develop perfect implementation strategies. A manager has to act as a bridge
between senior management and the entire workforce.
1. The role of manager is to act as a facilitator at the workplace. It is the duty of a manager
to assist employees in implementing TQM. As a manager, it is also his responsibility to
choose and assign right individuals who can work as line managers and take charge of
the whole project. The employees to be selected managers and take charge of the
whole project. The employees to be selected must be reliable and diligent and capable
as much as necessary to handle a key project like TQM. It is the manager’s
responsibility to allocate resources for TQM, schedule time for different training
programs and be grateful for employees who come up with a variety of improvement
ideas and strategies which would aid the organization bring better quality products.
Further train subordinates to guarantee smooth implementation of TQM without any
obstacles.
2. A manager must communicate the benefits of total quality management to all other
members of the organization. Call employees on a common platform and address the
benefits and importance of TQM. Make them understand how successful implementation
of TQM programs would give way to high quality products which would benefits the
organization and the employees as well

A Manager is always a strong source of inspiration for the other employees. He


needs to practice TQm himself before expecting others to believe in the same principle.
Customer feedback should be cautiously screened and taken into consideration while creating
the company's major strategies. A manager must also provide frequent reports to staff members
stressing scope of improvement.

Process vs Results

Process-oriented mostly centers on how processes are carried out through the
assessment of performance indicators generated by measuring or observing the process flow.
Result-oriented thinking basically disregards how processes flow and work. Instead, process
results/outcomes are obtained, monitored and evaluated systematically. For example, micro
level performance indicators include lead time, cycle time , throughput time, and defective part
ratio. While macro level performance indicators consist of profit or customer satisfaction which
would be monitored in result-oriented thinking.

Kaizen focuses on improving the process rather than achieving certain results. Such
managerial attitudes and process thinking formulate a major difference in the manner an
organization masters change and achieves improvements. This concept of process-oriented
thinking indicates that there must be some problems in a process if the outcomes are not
encouraging the firm.

Kaizen recognizes the connection between outcomes and processes. If the results from
an organization are poor quality, the process used to achieve those results necessitate
concentration. This understanding is a component of the framework of japanese society, even
on the personal level, and explains why Kaizen is so successful there.
The manner in which processes are addressed is a key element of Kaizen. While in the
West, innovation or radical change is often sought, kaizen hunts for constant incremental
change, which generates remarkable results eventually. Since the changes in kaizen are small.
Errors can effortlessly be corrected with no involvement of much risk or expense. This is likely to
make kaizen processes less wasteful than innovation, where error can give tremendous loss
effects.

TABLE 2 THE FEATURES IF PROCESS AND RESULT CRITERIA

Process-oriented criteria Result oriented criteria

Long-term orientation Short-term orientation

Efforts for improvements are important Performance and results are important

It is cared how the processes work and how Degree of goal achievement is important
the results are obtained

Process-oriented indicators are followed Result-oriented indicators are followed

Awards are determined on the basis of how Rewards are generally related to financial
processes flow performance

Rewards are generally based on recognition Rewards are generally related to financial
and honor geared to the effort made performance

Discipline, time, management, skill. The results and reaching goals in designated
Development , participation and involvement, time frame are important
morale and communication are important

A supportive and collaborative role is seen Control-centric behavior is more common


among managers in process-oriented among result-oriented managers
management

Quality gurus strongly note that a combination of process-oriented and result-oriented


management should be implemented throughout the entire operational system instead of
focusing on just one orientation (either process or result) as this heightened focus may not be
enough to generate a successful continuous improvement strategy. Continuous improvement
can be either a team management or top management initiative. In order to be able to utilize
these two management approaches appropriately, the basic features of process-oriented and
result-oriented management should be studied prior to getting on a continuous improvement
journey.

PDCA/SDCA cycles
Central to the philosophy of kaizen are two cycles that involve processes for
improvement and for maintenance: Plan-do-check-act (PDCA) and Standardize-do-check-act
(SDCA). When improving processes the following are the phases

1. Planning phase - planning is the most vital phase of total quality management. In this
phase employees have to come up with their problems and queries which need to be
addressed. They need to come up with the various challenges they face in their day to
day operations and also analyze the problem’s root cause. Employees are required to do
necessary research and collect relevant data which would help them find solutions to all
the problems.
2. Doing phase - In the doing phase, employees develop a solution for the problems
defined in the planning phase. Strategies are devised and implemented to overcome the
challenges faced by employees. The effectiveness of solutions and strategies is also
measured in this stage
3. Checking phase - checking phase is the stage where people actually do a comparison
analysis of before and after data to confirm the effectiveness of the processes and
measure the results.
4. Acting phase - in this phase employees document their results and prepare themselves
to address other problems.

Maintenance cycle, SDCA is invoked when a failure occurs. Standardization


seeks to stabilize processes so they can be improved. Through understanding if a failure
occurred because of a poor or non-existent standard or because an existing standard
wasn’t followed, managers can implement specific actions to correct it. Once a standard
is put into place and put into practice, it can become the focus of the PDCA cycle

The SDCA cycle ensures that the improvements that have been done using
Kaizen works well and improvements do not slide back. SDCA prevents the deterioration
and therefore it is extremely important that both the SDCA and PDCA cycles are well
established. Improvement without standardization is stillborn to say the least
● Action, Modify standard based upon result from checking the standard
● Standard, Standards are created with the employees (data users are
involved)
● Do, Carrying out the standard ( training, practice, experience)
● Check, Compare standard with current situation to verify intended use

Standard is the best, safest and easiest way, to achieve and maintain a defined quality
level.

Standards should be:


1. Be simple,clear and conspicuous
2. Be the best, easiest, safest way- should only have one at a time
3. Preserve know- how
4. Be guide-lines that enable performance
5. Measurement of tasks delegated
6. Assure quality, cost, delivery and safety
7. Show relationship between cause and effect

With standards
1. Management becomes possible
2. There is a basis for training
3. There is a basis for audit or diagnosis
4. Problems are prevented from recurring and control variability

Putting quality first


Kaizen also talks about improving performance in terms of three dimensions which are
quality, cost and delivery (QCD). quality is typically among the most essential criteria customers
use to make the purchase. Quality is usually customer defined and referred to as the perceived
characteristics and features of a product. This includes the quality of processes that go into it.

Kaizen requires that quality is a primary goal. There could be so many goals for the firms
to achieve such as goals of quality, cost, and delivery. However, the firm should always put
quality first priority. Kaizen recognizes that without a quality product, organization will not be
able to compete. If managers make the same changes on delivery to make it cheaper or cut
costs somehow, and it ends up making the quality worse, they risk sacrificing not only quality
but the life of the business as well.

Cost is generally looked at coming from the manufacturer’s viewpoint, as the overall cost
of making and selling a product. An important factor, here, is the elimination of waste in many
aspects of work, such as production, inventory, repair, rejects, motion, processing and so on.

Delivery refers to bringing the necessary quantity of products in the right place at the
right time. The company may offer better prices using reduced cost and attractive delivery
terms. However this does not guarantee competitiveness, if the quality of goods and services
falls short of consumer expectations, some cost-oriented managers do not resist the lure of
cutting costs at expense of quality. This could work well in the short-term, but would likely to
endanger not only profitability, but also reputation and market position of the product in the
long-term

Speak with Data


Kaizen is a problem-solving process. Since kaizen deals with addressing problems or
limitations, every situation must be correctly understood. Kaizen has no room for “seat of the
pants” operations. In order to correct the problems in a process, detecting the problem is the
first thing to do. Sound data must be gathered and evaluated for kaizen to work for
improvement. Without this data the company will be like a flying blind. It will never be able to tell
what is working and what needs to be improved. Data is the lifeblood of kaizen.

The next process is customer


The last concept of kaizen is that the next process is the customer. This means that all
workers think that the next process is the customers. So, all workers in any process on no
account pass on flawed parts or imprecise pieces of information to those in the next process
particularly when the organization has a strong commitment to consumer satisfaction. Id all
workers have to be cautious on what they are doing, the customer gets the high-quality product
and service as a result.

Kaizen promotes the concept of internal and external customers. Through regarding
every process in a series as a customer of the preceding process, every stage of production can
be concentrated for a quality result. If each internal customer is delivered high quality goods, the
external customer will have high quality products to purchase.

Kaizen views the whole work in a specific organization as a series of interrelated


processes where each consists of a supplier and a customer. The supplier provides the process
with inputs such as material and/or information. The supplier can be another process within the
organization or someone outside the organization. Same goes to the customer; the customer is
either someone in the organization ( internal organization) or the final customer out in the
market (external customer). The customer receives or deals with the output of the process.
Having this in mind, all individuals within an organization deal with customers either internal or
external ones. That is, the next process is always regarded as a customer. Through this, kaizen
tries to set up a natural commitment to on-going process improvement throughout the
organization to ensure that external customers will always receive high quality products.

KAIZEN SYSTEM
Next, the system of kaizen has to be understood. Kaizen encompasses many of the
components of japanese businesses that have been seen as a part of their success. Total
quality control/ total quality management, just-in-time delivery, total productive maintenance,
suggestion system, policy development, suggestion systems, and small group activities are all
included within the kaizen system of running a business.

KAIZEN SYSTEM
● TQM CONTROL
● JIT production system
● Total productive maintenance
● Policy development
● Suggestion system
● Small-group activities

TQM Control
Total quality control (TQC) and total quality management (TQM) are widely used in
manufacturing, education, government and service industry now. TQC/TQM have been
developed as a strategy to help management in becoming more competitive and profitable
throughout helping it to improve in all phases of business. TQM necessitated that the company
upheld some quality standard in all phases of its business. This needs ensuring that things are
completed right the first time and that defects and waste are removed from operations.

TQC is a management tool for improving total performance. TQC menas organized
kaizen activities involving everyone in the company. Managers and workers alike should be part
of a totally systematic and integrated effort toward improving performance at every level. It is
geared towards increased customer satisfaction through satisfying such corporate
cross-functional goals as quality, cost, scheduling, manpower development, and new product
development.

In japan, TQC activities are not limited to quality control alone. Elaborate system of
Kaizen strategies has been developed as management tools within the TQC approach. TQC is
a movement intended at improvement of managerial performance at all levels.

According to the japan industrial Standards “implementing quality control effectively


necessitates the cooperation of all people in the company, including top management,
managers, supervisors, and workers in all areas of corporate activities such as market research
and development, product planning, design, preparation for production, purchasing, vendor
management, manufacturing inspection, sales and after-sale services, as well as financial
control, personnel administration, and training and education. Quality control carried out in this
manner is called company-wide quality control or total quality control (TQC).”

TQC OF JAPAN VS WEST

JAPAN WEST

Deals with quality of people Deals with quality of products

customer-oriented manufacturer-oriented

upstream downstream

Process-oriented aimed at improving the total Product-oriented, aimed at detecting and


performance eliminating defective parts

Company-wide, everybody’s responsibility Responsibility of quality control managers

JIT production system


Many people have misconstructed just-in-time (JIT) production. In one of most frequent
misunderstandings, a company expects its suppliers to deliver just-in-time. However , JIT
production has something to do with internal processes. JIT is a revolutionary way to trim down
cost while at the same time meeting the customer’s delivery needs. For example, new stocks
will be ordered automatically when stock reaches the reorder point level. So , this system
ensures that the firm can maintain the minimum required number of stock everyday, which
saves a lot of inventory costs. Also the firm can meet the customer’s delivery needs.

Elements of JIT

1. Make stable and level the master production schedule (MPS) with uniform plant loading
to create a uniform load on all work centers through regular daily production and mixed
model assembly.
2. Decrease or eliminate set up times. Aspire for single digit set up times less than 1-
minutes or more touch setup. This is done through better planning, process, redesign,
and product redesign.
3. Trim down lot sizes. Decreasing set up times allows economic production of smaller lots,
close cooperation with suppliers which is necessary to realize reduction.
4. Shrink lead times. Production lead times can be reduced by moving workstations closer
together, applying group technology and cellular manufacturing concepts, reducing
wait-in-line length and improving the coordination and cooperation between successive
processes. Delivery lead times can be decreased through close cooperation with
suppliers, perhaps by including suppliers to be located very near to the factory.
5. Preventive maintenance. Use of machine and worker idle time to preserve equipment
and avoid breakdown
6. Flexible workforce, workers should be trained to work on several machines to carry out
maintenance tasks, and to do quality inspections.
7. Obligate supplier quality assurance and execute a zero defect quality program. Small
lots (single unit) conveyance. Make use of a control system like the kanban system (or
other signaling system) to transport parts between workstations in smaller quantities. In
its better sense, JIT with material requirements planning (MRP) system is used to
transport the parts between workstations.

Reasons for a more from batch mode of Just-in-time (JIT)


1. Batch production systems are the most-inefficient way to make products.
2. Difficult to meet customer requirements which come in varying orders, like varying
volumes in varying time frames and soon.
3. The batch system derives from the agricultural mentality. The batch system, purchase
material and produce in huge batches and there are many processes. At every process,
gather the batch and at the end collect the finished product in a batch, which is stocked
up in the warehouse.
4. This kind of production system based on market projection, is good when there is
demand.
5. End up with a large inventory of unsold products and overload capacity, and then borrow
money to carry that inventory. By the time, I got hold of too many people for every
process.

Total Productive Maintenance


In industry, total productive maintenance (TPM) is a system of maintaining and
improving the integrity of production and quality systems through the machines, equipment,
processes, and employees that add business value to an organization. TPM focuses on
maintaining all equipment in top working condition to avoid breakdown and delays in
manufacturing process

The term total productive maintenance is attributed to Nippondenso, a company that


created parts for Toyota. However, Seiichi Nakajima is regarded as the father of TPM because
of his numerous contributions to TPM.

One of the main objectives of TPM is to increase the productivity of plant and equipment
with a modest investment in maintenance. Total quality management (TQM) and Total
productive maintenance (TPM) are considered as the key operational activities of the quality
management system. In order for TPM to be effective, the full support of the total workforce is
required. This should result in accomplishing the goal of TPM; “Enhance the volume of the
production, employee morale and job satisfaction.”

Total productive maintenance (TPM) is a modern Japanese concept. The origin of tpm can be
traced back to 1951 when preventive maintenance was initiated in japan. However the concept
of preventive maintenance was taken for the USA. Nippondenso was the first company to begin
plant wide preventive maintenance in 1960. Preventive maintenance is the concept wherein,
operators produced goods using machines and the maintenance group was dedicated with work
of maintaining those machines. However with the automation of Nippondenso. Maintenance
became a problem as more maintenance personnel were required. So the management
decided that the routine maintenance of equipment would be carried out by the operators which
are termed as Autonomous maintenance, one of the features of TPM. Maintenance group took
up only essential maintenance works.

Thus Nippondenso which already followed preventive maintenance also added


autonomous maintenance made by production operators. The maintenance crew went in the
equipment modification for improving reliability. The modifications were made or incorporated in
new equipment which leads to maintenance prevention. This preventive maintenance along with
maintenance prevention and maintainability improvement gave origin to productive
maintenance. The intention of productive maintenance was to get the most out of plant and
equipment effectiveness to attain optimum life cycle cost of production of equipment.

By then Nippondenso had made quality circles, involving the employees’ input. Thus all
employees took part in implementing productive maintenance. Based on these developments
Nippondenso was awarded the distinguished plant prize for developing and implementing TPM,
by the japanese Institute of Plant Engineers (JIPE). Thus Nippondenso of the Toyota group
became the first company to achieve the TPM certification.
Another objective of Tpm is to increase the overall equipment effectiveness (OEE) of
plant equipment. TPM also addresses the cause for accelerated deterioration while creating the
correct environment between operators and equipment to create ownership

OEE has three factors which are multiplied to give one measure called
OEE performance * Availability * Quality = OEE

Each factor has two associated losses making 6 in total, theses 6 losses are as follows
1. Performance - running at reduced speed and minor tops
2. Availability - breakdowns and product changeover
3. Quality - startup rejects and running rejects

The objective finally is to identify then prioritize and eliminate the causes of the losses.
This is done by self managing teams that problem solve. Employing consultants to create this
culture is common practice.

The eight pillars of TPM are mostly focused on proactive and preventative techniques for
improving equipment reliability:

1. Focused Improvement
2. Autonomous Maintenance
3. Planned Maintenance
4. Quality Maintenance
5. Cost Deployment
6. Early Equipment Management
7. Training and Education
8. Safety Health Environment

Types of Maintenance

1. Breakdown maintenance - it means that people wait until equipment fails and repair it.
Such a thing could be used when the equipment failure does not significantly affect the
operation or production or generate any significant loss other than repair cost.
2. Preventive maintenance - It is a daily maintenance ( cleaning, inspection, oiling and re
tightening), designed to retain the healthy condition of equipment and prevent failure
through the prevention of deterioration, periodic inspection or equipment condition
diagnosis, to measure deterioration. It is further divided into periodic maintenance and
predictive maintenance. Just like human life is extended by preventive medicine, the
equipment service life can be prolonged by doing preventive maintenance.

A. Periodic maintenance ( Time base maintenance - TBM) - Time based


maintenance consists of periodically inspecting, servicing and cleaning
equipment and replacing parts to prevent sudden failure and process
problems
B. Predictive maintenance - This is a method in which the service life of
important parts is predicted based on inspection or diagnosis, in order to
use the parts to the limit of their service life. Compared to periodic
maintenance, predictive maintenance is condition based maintenance. It
manages trend values, by measuring and analyzing data about
deterioration and employs a surveillance system, designed to monitor
conditions through an on-line system.

3. Corrective Maintenance - It improves equipment and its components so that


preventive maintenance can be carried out reliably. Equipment with design
weakness must be redesigned to improve reliability or improve maintainability.

4. Maintenance Prevention - It indicates the design of new equipment. Weakness


of current machines are sufficiently studied ( on site information leading to failure
prevention, easier maintenance and prevents defects, safety and ease of
manufacturing) and are incorporated before commissioning a new equipment.

Policy Development
People follow policies, good or bad. The need, therefore, is for organizations in
developing countries to realize the importance of clear, well-defined policy statements on
quality, reflecting management’s commitment and orientation and to propagate them through
various modes, such as circulation of documents, newsletters, training, meeting, pledge cards
and personal contacts.

It needs to state the level of defect or errors that is acceptable. The policy also needs to
state the relationship between the company and the customer. The policy should be direct and
concise and should clearly define management’s commitment to quality. The policy on quality
has to be a statement that will not be misunderstood. It has to cover conformance to
requirements, time and money.

Once the policy is written, management needs to determine how to explain it to


employees. The best method is for top executives to meet personally with groups of employees
to explain the policy. This also ensures that the commitment and interest of top management is
properly understood by all.

Suggestion system
On the other hand, the suggestion system is regarded as individual-oriented kaizen.
Suggestion system encourages all workers to talk about their suggestions orally with
supervisors and put them into action right away even before submitting suggestion forms.
However all the workers don’t need to expect to get economic benefits from each suggestion.
The process to think and have the idea of each worker is vital. The system is different from
western management which emphasizes the economic benefits and financial incentives of
suggestion systems.
The suggestion system is an integral part of an established management system that
aims at involving employees in kaizen. The number of workers suggestions is regarded as an
important criteria in reviewing the performance of the worker’s supervisor and the manager of
the supervisor. The japanese management encourages employees to generate a great number
of suggestions and works hard to consider and implement these suggestions, often
incorporating them into the overall Kaizen strategy. Management also gives due recognition to
employees’s efforts for improvement. An important aspect of the suggestion system is that each
suggestion, once implemented, leads to an upgraded standard.

Three stages of the suggestion system

A Staff suggestion system is a formalized mechanism which encourages employees to


contribute ideas for improving the organization in which they work. The overall aim is to gather,
analyze and implement ideas in order to create results that have a positive impact on the
business and/or deliver new value to customers. The following are the three stages of
implementing Suggestion system:

1. Encouragement - in the first stage, management should make every effort to help the
workers provide suggestions, no matter how primitive, for the betterment of the worker’s
job and the workshop. This will help the workers look at the way they are doing their
jobs.
2. Education - In the second stage, management should stress employee education so that
the employees can provide better suggestions. In order for the workers to provide better
suggestions, they should be equipped to analyze problems and the environment. This
requires Education
3. Efficiency - Only in the third stage, after the workers are both interested and educated,
management be concerned with the economic impact of the suggestion

Benefits of a suggestion system


Implementing an effective staff suggestion system that generates a sustainable flow of
good quality ideas is not impossible. In Toyota, 700,000 ideas are generated annually with a
99% implementation rate.

Here are the benefits of a suggestion system, namely:


1. Improves one’s own work and the working environment
2. Engages and empowers employees
3. Creates ownership and trust
4. Improves motivation and morale
5. Improves customer satisfaction
6. Improves profitability

Many organizations have made the mistake of putting up suggestion boxes and expect
employees to participate and contribute good quality ideas to improve the products, services
and the working environment without creating a supporting infrastructure to manage the flow of
suggestion

More often than not, these suggestion boxes are either empty or collectors of trash.

For a suggestion system to be successful and effective, the following factors have to be
considered:

1. Formation of a suggestions committee to plan and manage the suggestions system


2. Defining the suggestion process, including a feedback system
3. Promoting the suggestions system
4. Evaluation system
5. Award system
6. Sustaining the suggestion system

THE SUGGESTION CYCLE


Encouraging people → Improvement Proposal → review, evaluation and guidance → awards
and recognition → Encouraging people (CIRCLE)

Why suggestion system stumbles and how to avoid them


Most suggestion remain to be suggestion because of:
1. Delays in approving ideas - Respond within the day to team member ideas whenever
possible. The approval may be a “go do it” or to give cochin to ideas that require further
thought and development. For complex or large ideas, respond within a week, or
encourage the idea generator (person) to break the problem down into several smaller
parts.
2. Complex approval process ( committees) - the approval process should undergo
observation, discussion and approval by the team leader or supervisor. It’s better to go
see the actual issue in the actual place than to discuss the issue in a conference room
based on ideas written on a piece of paper.
3. Backlog of suggestions needing approval or implementation - Ironically, asking for
quantity over quality will force the identification of smaller problems that are easier to
solve. This reduces the backlog as more of them are “just do it” ideas. The increase the
skill and confidence of people to go through the problem solving process ( thinking) as
well as the action itself ( experimentation)
4. Less than 90% of ideas implemented - An idea should be nurtured and the idea
generator (person) should be coached so that basically every idea is approved. Provide
guidelines on which is a good kaizen. Track approval rating visually and gave a
management team problem to solve the gap between current condition and 99%
implemented.
5. Inappropriate kaizen suggestions - once again, clear guidelines for what is a good
kaizen idea. Focus on the customer, improve own work and keep environmental targets
from management policies in mind. Process focus, not people issues is appropriate.
6. Allowing anonymous suggestions - This defeats the purpose of kaizen as a people
development tool since the idea generator cannot be coached. It's alright to allow
anonymous suggestions where people feel the need to “blow the whistle”. Except that
this indicates that the workplace is not safe professionally, emotionally or physically and
is not a stable environment for kaizen. Fix that condition before launching the suggestion
system and anonymous suggestions would not be an issue.
7. Unfair rewards - every idea should receive a small reward. Larger awards may be given
based on several categories like effort, creativity and impact of the kaizen idea.
Encouraging kaizen idea generation, development and implementation by teams, and
giving tema rewards also lessens the possibility of unfair rewards being given to
individuals.
8. Motivation by cash only - since humans are at the heart of kaizen and humans need
both extrinsic (cash) and intrinsic motivation. Sustained kaizen needs intrinsic motivation
like recognition, self-actualization, skill development, feeling fulfilled, or saving the
environment through kaizen suggestions. Management attention and leadership is
required.
9. Lack of promotion and support of the kaizen suggestion program - Endorse kaizen in all
its forms in a variety of ways. Take a long-term view of kaizen of people development
and communication strategy. Start by encouraging the idea of generation by teams, and
aiming for quantity over quality. Hold periodic “championships” or promotional events
based on themes
10. Lack of timely implementation - companies can do these entirely well and still not get the
ideas put in place quickly enough if resources. Meaning time, money, materials, skills
are not enough for the number of great ideas team members are generating. The skill
matrix is a great enable for suggestion systems. Once again, the management should
evaluate the gaps in the 4Ms ( manpower, material, machine, method) resources to keep
suggestions moving smoothly.

Small group activities


A kaizen includes small-group activities-informal and voluntary groups organized to carry
out specific tasks in a workshop environment. The quality circles are the most popular type.
Quality circles are designed to address not only quality issues but also such issues as cost,
safety, and productivity. Quality circles are regarded as group-oriented kaizen activities

Small group activity (SGA) is also known as focused or continuous improvement in


english. SGA finds its origin in the Japanese industry where it is called quality circles (QC). SGA
is a method for problem solving in teams by structurally searching for the root cause and
eliminating them. After standardization of the solution of reoccurrence of the problem is
prevented. The feeling of ownership is intensified because those who are directly involved solve
the problem in a multifunctional team.

The members of the team learn to use techniques (cause and effect diagram,
fishbone-diagram) to ding and eliminate root cause. The team is also taught communication
skills, working in teams and decision making, in order to use each other’s knowledge and
experience (PIE CHART, P.105)

1. Choose a subject (it may be preceded by brainstorming) – it is simply the presentation of the
problem.
2. Set a target – the objective should be determined by the team or the manager, objective
should be measured in the same units what problem was, it should be made a specific
execution date for (“as soon as possible" it is not correct). The objective should be: Specified
and saved Measurable, Acceptable, and Realistic, Timely and ambitious.
3. Problem analysis – the purpose of this step is to identify all current or possible causes of the
problem. Problem analysis investigates a situation/problem in order to allow the researcher to
understand more fully the problem, in order to recommend practical solutions for solving it. In
addition, a problem analysis determines the degree of the problem and if the problem is
genuinely related to the specific site under investigation.
4. Invent solutions – involve the team in collecting facts and listen to everyone. Search solutions
for the SGA should be based on facts, not opinions. The study and interpretation of the data
needed are appropriate tools.
5. Make a plan – the action plans are prepared by the team.
6. Execute the solutions – this stage is a bridge between theoretical activities in solving
problems and bringing to the actual operation. Objective: Convincing decision makers for their
solutions. The implementation of solutions requires the following: planning, training (if needed),
communications, establishing a timetable for implementation (to establish deadlines for the
review).
7. Check if it works – it should be established: How actions or results will be monitored and how
often? Watch the results for some time to see if actions bring expected results. Is the objective
set by the team has been achieved? If not, the team should decide to return to step 1.
8. Standardise – it occurs when the team finds a satisfactory solution. Standard in this case
means: the best, safest and easiest way, to achieve and maintain a defined quality level.

The structure of an SGA project is derived from the PDCA circle from Dr. W. Edward
Deming and exists on 8 steps on the basis of the SGA circle. The SGA team works
independently and reports the progress by means of communication boards.

The introduction of SGA leads to following results:


1. Team-building
2. Improved communication
3. Higher involvement
4. Learn how to analyze and solve problems
TQM chapter 5

A dirty workplace cannot produce quality products. A chaotic workplace with mess
around everywhere is bound to produce poor quality products.

Everyone and all types of business benefit from having a well constructed ts program. It
is usually manufacturing that comes to mind but any type of business from hospitals to
professionals service and every area or department within the organization will benefit from
implementing a 5s program

THE 5S
5s which is a japanese system to reduce costs, control inventory and reduce
breakdowns and accidents drastically resulting in increased profits. It is the starting point for any
company who wants to make improvements at the workplace by reducing waste and create
better environment for its employees to work in.

5s is a procedure that organizes individual workstations or departments and


consequently enhances efficiency at the micro-level by keeping the workplace neat, orderly and
accessible and it is for this reason that it is considered as the foundation of quality initiative in
any organization.

The 5s is a systematic approach and the key to total quality environment, a philosophy
most japanese factories endorse and practice. It leads to foolproof systems, standar policies,
rules and regulation to give rise to a healthy work culture at the organizations. Japanese
factories are well known for their cleanliness and orderliness. 5s is the philosophy that simplifies
the work environment and reduces waste and non-value activity while improving quality
efficiency and safety.

Hardly anyone can find an individual representing a japanese company unhappy or


dissatisfied. Japanese employees never speak ill about their organization. The process of
Kaizen plays an important role in employee satisfaction and customer satisfaction through small
continuous changes and elimination defects. Kaizen tools give rise to a well organized
workplace which results in better productivity and yield better results. It also leads to employees
who strongly feel attached towards the organization. Kaizen focuses on continuous small
improvements and thus gives immediate results. The name stands for five japanese words, seiri
(sort), seiton (set in order), seiso (shine), seiketsu (systematize) and shitsuke (standardize).

5s adoption is different in every facility, depending on the needs, processes, and culture
of any given workforce. However, no matter how it’s done, business large and small enjoy
numerous benefits from adopting the 5s methodology which includes:

1. IMPROVED PROFITABILITY - companies can save labor hours, money, and


other resources
2. MORE EFFICIENT WORKFORCE - with standards procedure in place,
personnel can center on what’s important
3. BETTER SERVICE - with a more organized, cleaner, streamlined workplace,
employees can use more time providing exceptional service
4. SAFER WORKPLACE - employees are at less hazard and can feel protected in
clean, organized workspaces.

5s process can increase morale, create positive impressions on customers, and increase
efficiency and organization. Not only will employees feel better about where they work, the
effect on continuous improvement can lead to less waste, better quality and faster lead times.
5s should become part of the culture of the business of everyone in the organization.

Thes steps in 5s (circle chart)


SORT→ SET IN ORDER→ SHINE→ STANDARDIZE→ SUSTAIN→ SORT

SORT ​(Seiri)
In the first stage, sort, all tools and materials used in the work process are taken care of.
Sort refers to the sorting of the clutter from the other items within the work area that are actually
needed. Sort connotes tidiness and structured organization.

During the sort process, all material and tools are sorted, and only necessary ones are
kept for continued use. In other words, this stage requires the team to remove all items that
clearly do not belong in the working area and only leave those that are required for the process
in question. Simply keep the necessary in the work area, dispose or keep in a distant storage
area less frequently used items, discard unneeded items. This process leads to fewer hazards
and less clutter that might interfere with productive work.

Since sort focuses on eliminating unnecessary items from the workplace employees
should sort out and organize things well. Label the item as “Necessary”, “critical”, “most
important”, “not needed now”, “useless and so on. Throw what all is useless. Keep Aside what
all is not needed at the moment. Items which are critical and most should be kept a safe place.

Sorting unnecessary Items

FACTORY FLOOR OFFICE HOME

Machines to be scrapped used/broken pens Broken toys

Rejected material Useless paper Old clothes

Expired goods Old diaries Broken suitcases

Trolleys
Old notices

Consequences of not practicing sorting :


1. The unnecessary messes the place and the necessary are hard to find
2. Everyplace can only contain so much
3. Mess sometimes causes misidentification.

Figure 14 flowchart of separating the wanted and unwanted (page 122)

This stage has the following steps:


1. Separate needed items from unneeded items. Do red tagging activity. It is a means of
implementing organization by labeling all unneeded items with conspicuous red tags.
2. Store the needed item in the following storage sites :
A. Ready-access storage ( needed in 1-6 months )
B. Remote storage ( needed in more than 6 months )

In this step, it is important to determine the storage periods in advance and


should also have labels and descriptions on all storage sites/containers.

3. Discard / dispose the red-tagged (unneeded items)


4. Discard remote storage items by the box load at the end of the storage period

SET IN ORDER ​( Seiton)


Set in order refers to straightening and orderliness. It is the process of taking the
required items that are remaining after the removal of clutter and arranging them in an efficient
manner through the use of ergonomic principles.

In this phase, all the materials and tools selected for the production process are
organized. The focus is on efficient and effective storage and the requirement for a tidy
workplace. In addition the process should be arranged in an order that makes best use of
efficiency.

Research says that employees waste half of their precious time looking for items and
vital documents. There should be a place for everything, and everything should be in its proper
place. This is also known as “demarcation and labeling of place.” keeping things in order plays
an important role in the efficient use of items, which will contribute to time saving, the place for
each item should be visibly labeled or segregated.

Items should be arranged in a manner that support systematic workflow; with equipment
used most often being the most easily accessible. For instance tools, equipment and parts
should be reserved where they will be used in order to straighten the flow path. Workers should
not have to bend repetitively to access materials using ergonomics.

Table5 Setting items in order


FACTORY FLOOR OFFICE HOME

Unlabelled tool crib Unlabelled file cabinet clutter

Clutter shelves, lockers etc. Clutter No orderly arrangement in


drawer,shelves,bookcases, the rooms
tables

Stores- no clear location Records and documents not


system arrange well

Things on the floor File heaps and papers

For the items that have been sorted as needed, they must be kept in the correct place to
allow for easy immediate retrieval. The targets for orderliness could include any of the following

1. SPACES - floors, walkways, operation areas, walls, shelves, warehouses


2. PRODUCTS - raw materials, produced parts, parts for machinery, in-process inventory,
assembly parts, semi-finished products, finished products
3. EQUIPMENTS - machines, tools, jigs, gauges, carts , conveyance tools, work tables,
cabinets, chairs

In this stage, the company may want to employ signboards and painting as a form of
visual methods of orderliness.

1. The signboard strategy - the signboard strategy is a method for clearly indicating where,
what, and how many necessary items go where, to make the facility more orderly. The
signboards should include the following information:
A. Specific places - “where things go” via location indicators
B. Specific items - “what things” via item indication
C. Specific amounts - “how many things” via amount indicators

2. The painting strategy - this strategy involves marking of the factory’s walking areas
(“walkways”) from its working areas (“operation areas”) using any of the following:
A. Divider lines
B. Door range lines
C. Markers for inventory, carts, worktables, and
D. Tiger marks (yellow and black striped lines)

Consequences for not practicing setting in order:


● Things are rarely obtainable when needed
● Items are misplaced in stores
● Items that are defectives and good ones get mixed up
● Accidents or near-accidents take place due to mess
● Visual control of the shop floor is not feasible
● At times, production is lost because an item necessary is available but cannot be seen
● In some officers, important records may not be traceable. This can lead to loss and
embarrassment.

SHINE ​(seiso)
Shine, stands for sweeping and cleanliness. It means to clean all items used at work and
all materials used during a manufacturing process. The workplace, for example, has to be clean
and tidy all the time. At the end of each shift, a work area is cleaned up and everything is
restored to its place. This makes it easy to know what goes where and to have confidence that
everything is where it should be a component of daily work. It must not be a special activity that
is initiated only when things get too cluttered. It means clean everything, removing stains, spots
and debris and eradicating sources of dirt. The workplace ought to be kept clean. Workstation
should be decluttered. Necessary documents should be kept in proper folders and files. Use
cabinets and drawers to store items.

Shine is the comprehensive cleaning of the area, tools, machines and other equipment
and other equipment to make certain that everything is returned to a “nearly new” status. This
will ensure that any non-conformity stands out like an oil leak from a machine onto a bright,
newly painted clean floor.

Clean the workspace and all equipment, and keep it clean, tidy and organized. After the
first thorough cleaning when implementing 5s, everyday follow-up cleaning is compulsory in
order to maintain this improvement. A “shining” work environment will lead to great efficiency
gains.

TABLE6 Maintaining shine items

FACTORY FLOOr OFFICE HOME

Dirty machines Dirty tables and furnitures Dirty furniture, floor, window,
grills, bookshelves

Dust on product parts,raw Dirty office equipments


material

Dirty jigs, furnitures Littered floor

Dirty walls,roofs Dirty windows

Littered floor
Shine should be integrated into daily maintenance tasks to combine cleaning
checkpoints with maintenance checkpoints. It involves the following phases

1. Daily cleanliness
A. Determine cleanliness targets
B. Determine cleanliness assignments
C. Determine cleanliness methods and tools
D. Implement cleanliness
2. Cleanliness inspection
3. Maintenance

STANDARDIZE ​(seiketsu)
Seiketsu, translates as “standards.” A standard refers to making all the cleaning, control,
and improvement processes a customary activity in the workplace, allowing for control and
consistency. Fundamental housekeeping standards apply everywhere in the facility. Everybody
knows precisely what his responsibilities are. Housekeeping duties are an ingredient of normal
work routines.

Standardize means keeping one’s person clean, like wearing proper working clothes,
safety glasses, gloves, and shoes, as well as maintaining a clean, healthy working environment.
In addition standardize can be interpreted as continuing to work on the first three 5s continually
and everyday

Employees need to respect the organization's policies and adhere to rules and
regulations. Self discipline is indispensable. Do not report to the office in casuals. Follow work
procedures and do not fail to remember to carry ones identity cards to work. It gives an
employee a sense of pride and respect for the organization.

Work practices should be consistent and standardized. Workstations for a particular job
should be the same. All employees doing identical jobs should be able to work in any station
with similar tools that are in the same location in every situation.

TABLE 7 standardizing of items

FACTORY FLOOR OFFICE HOME

Handling hazardous chemical Free if pests Pest control


Controls of fumes, hazardous Personal hygiene Personal hygiene
dust
Disinfecting, personal
hygiene
Consequences of not practicing standardizing:
1. Good health and safety need the practice of standardizing
2. Harmful chemicals, dusty chemicals, fumes and the likes can make it an unsafe place to
work in.
3. Washing thoroughly and cleaning a place makes the workplace enjoyable
4. Personal hygiene is indispensable for a healthy workforce.

SUSTAIN ​(shitsuke)
Shitsuke means maintaining the process to retain long-term kaizen goals and to
retaining and reviewing standards. This is to ensure that the firm has common standards and
ways of working. As soon as the previous four phases have been established, they become the
latest way of operating the organization. Maintaining a focus on this new way of operating is
indispensable, and a gradual turn down back to the old ways of operating should not be
permitted. Except if an issue arises about improvements in working, a new way of doing things,
or a new requirement concerning output, it typically leads to an evaluation of the first four
commandments.

Sustain makes certain that the company continues to continually improve using the
previous stages of 5s, maintain housekeeping, and conduct audits and so forth.

Consequences of not practicing standardizing


1. If standardizing is not practiced, then the first 4-S would backslide
2. Lack of standards will affect all activities related to safety and quality.

Sustain involves the habit of maintaining and following specified and standardized
procedures. This stage is best taught by example, and therefore, the person ultimately
responsible for any 5s backsliding is not the individual worker but the manager/ owner
himself. Given the critical role, the manger/ owner of the business may employ the
following measures:

1. The CEO must take ultimate responsibility in 5s adoption and implementation.


2. Explain the 5S’s until everyone understands them. Emphasizes that 5s is the
company’s road to survival due to its practical approach in minimizing wastes and
generating savings.
3. Promote company-wide participation such as but no limited to the following:
A. 5s poster making contest
B. 5s badge making contest
C. 5s slogan making contest
D. 5s ideas contes
E. 5s Day
F. Plant tour of a 5s practicing company
G. 5s Snapshots
4. Make organization and orderliness activities as visual as possible. Be persistent,
meticulous, quick and ruthless when red-tagging and making sign boards.
5. Manage people’s resistance to 5s
A. Provide encouragement at every opportunity.
B. Give and receive criticism carefully. Be polite
C. Immediately correct and slacking off on 5s conditions
D. Stick to hands-on, here-and-now approach
E. Improvement requires effort and effort requires enthusiasm.
Phases in TQM Implementation

OBJECTIVES: After reading this chapter, the student should be


able to: Recognize the different phases in TQM implementation.
Identify some of the methods in generating ideas for the planning
phase. Name the barriers in TQM implementation.

Jablonski offers a five-phase instruction for implementing total


quality management namely preparation, planning, assessment,
implementation, and diversification. Each phase is intended to be
implemented as component of a long-term goal of continually
increasing quality and productivity. Jablonski's approach is one of
many that have been applied to reach TQM, but contains the key
elements commonly connected with other accepted total quality
systems.

PREPARATION

It is during preparation when management decides whether


or not to pursue a TQM program. They undergo initial training,
identify needs for outside consultants, develop a specific vision and
goals, draft a corporate policy, commit the necessary resources,
and communicate the goals throughout the organization.

PLANNING

In the planning stage, a detailed plan of implementation is


drafted (including budget and schedule), the infrastructure that will
support the program is established, and the resources necessary
to begin the plan are earmarked and secured.

Planning for quality starts with setting quantifiable and


measurable targets. While doing this the organization needs to
keep customer's wants in mind. Once the quality objective is
decided it is important to think about the market feasibility of the
product. Once everything is planned the organization needs to
assess its capability to deliver the target quality. If there is gap in
capability then the organization needs to fill that gap by upgrading
to the required technology and skill sets.

A ranking chart should be developed to finalize the most


important aspect of quality planning and more focus should be
given to that aspect. Communicating the target and plan to frontline
people is important because they are the people who will
implement everything in the real life situation. They should be
properly convinced before starting the new course. Plan to monitor
the progress of quality program is important. This can be done by
devising ways and means to monitor progress and finding and
correcting deviations.

The following are some of the methods in generating ideas for


the planning phase, which are:

1. The '5 Whys' - asking 'Why?' at least five times to unearth


the core cause of problem.

2. Benchmarking is a technique that measures a company's


performance against the best in industry. This technique can help
in determining how the best companies achieve high performance
and quality levels. The following are types of benchmarking:

a. Internal benchmarking is a comparison between operations


or parts of operations which are within the same total organization.
For example, a large motor vehicle manufacturer with several
factories might choose to benchmark each factory against the
others.

b. External benchmarking is a comparison between an


operation and other operations which are part of a different
organization.

c. Non-competitive benchmarking is benchmarking against


external organizations which do not compete directly in the same
markets.
d. Competitive benchmarking is a comparison directly
between competitors in the same, or similar, markets.

e. Performance benchmarking is a comparison between the


levels of achieved performance in different operations. For
example, an operation might compare its own performance in
terms of some or all of our performance objectives such as quality,
speed, dependability, flexibility and cost against other
organizations' performance in the same dimensions.

f. Practice benchmarking is a comparison between an


organization's operations practices, or way of doing things, and
those adopted by another operation. For example, a large retail
store might compare its systems and procedures for controlling
stock levels with those used by another department store.

3. Brainstorming is a technique in which a group of people share


ideas and thoughts in a relaxed atmosphere on various problems
in order to stimulate unrestrained collective thinking.

ASSESSMENT

This process requires a thorough self-assessment both from


management and customers or clients. The assessment will be on
the qualities and characteristics of members of the company as
well as the company itself.
There are three methods that can be used in making an
assessment which are discussion group methods, survey methods
and award type. Each assessment method has advantages as well
as disadvantages. Discussion group method can yield some useful
insights and facilitate effective improvement activities. However,
the scoring process is open to greater subjectivity and care should
be exercised when analyzing scores.

Survey method is excellent for measuring employee


perceptions of TQM in an organization. However, perceptions may
or may not coincide with reality. Improvement activities should be
based on facts, not opinions. Perception studies require further
verification through research.

Award type self-assessment is the most effective form. The


organization gathers information, generates a list of strengths and
improvement opportunities and scores it. This process can be
facilitated by external experts who will generally speed up the
process and help eliminate scoring bias.

IMPLEMENTFITION

At this point, the organization can already begin to determine


its return on its investment in TQM. It is during this phase that
support personnel are chosen and trained, and managers and the
workforce are trained. Training entails raising workers' awareness
of exactly what TQM involves and how it can help them and the
company. It also explains each worker's role in the program and
explains what is expected of all the workers.

The Barriers to TQM Implementation

1. Lack of management commitment - In order for any


organizational effort to succeed, there must be a substantial
management commitment of management time and organizational
resources. The purpose must be clearly and continuously
communicated to all personnel. Management must consistently
apply the principles of TQM.

2. Inability to change organizational culture - Changing


organization's culture is difficult and will require as much as five
years. Management must understand and utilize the basic
concepts of change. They are:

a. People change when they want to and to meet their own


needs.

b. Never expect anyone to engage in behavior that serves the


organization's values unless adequate reason has been given.
c. For change to be accepted, people must be moved from a
state of fear to trust.

d. Improper planning: All constituents of the organization must


be involved in the development of the implementation plan and any
modifications thai occur as the plan evolves.

3. Lack of continuous training and education - Training and


education is an ongoing process for everyone in the organization.
Needs must be determined and a plan developed to achieve those
needs. Training and education are most effective when senior
management conducts the training on the principles of TQM.

4. Incompatible organizational structure and isolated individuals


and departments -Differences between departments and
individuals can create implementation problems. The use of
multifunctional teams will help to break down long. standing
barriers.

5. Ineffective measurement techniques and lack of access to data


and results - Key characteristics of the organization should be
measured so that effective decisions can be made.

6. Paying inadequate attention to internal and external customer -


Organizations need to understand the changing needs and
expectations of their customers. Effective feedback mechanisms
that provide data for decision making are necessary for this
understanding.

7. Inadequate use of empowerment and teamwork - Teams need


to have the proper training and, at least in the beginning, a
facilitator, whenever possible, the ,team's recommendation should
be followed. Individuals should be empowered to make decisions
that affect the efficiency of their process or the customer
satisfaction.

8. Failure to continually improve - It is tempting to sit back and rest


on laurels. However, a lack of continuous improvement of the
processes, product, and/ or service will even leave the leader of
the pack in the dust.

If the top management takes quality as a form of window


dressing then the organization is not going to attain the desired
goal. Companies which maintain quality only during the time of
inspection by ISO personnel can't achieve quality goals. It is difficult
but important to change the culture of the organization. Paradigm
change is needed to force people to strive for the new quality goal.
The way Jack Welch managed change in GE is a very good
example of people involvement in change management. As quality
is a continuous and never ending process, so is the training. Even
the whole lifetime is not enough for complete learning. So training
should go on forever. This is important because customer's
preferences keep on changing. Sony can be a good example of an
organization keeping pace with customer's preference change.

Sony tape-recorder made the gramophone an obsolete


product. Later on Walkman changed the way for portable music. At
present even Walkman is an obsolete product and Sony sells MP3
players by the same brand name. People should not live in silos.
They should come out to facilitate better interactions to share
knowledge. People should be empowered to sort out issues. This
will reduce the throughput time. Obviously accountability is
important along with empowerment. If a frontline personnel is
empowered to sort out customer's problems then it will save
precious time of the top management.

DIVERSIFICATION

In this stage, managers utilize their TQM experiences and


successes to bring groups outside the organization (suppliers,
distributors, and other companies that have an impact on the
business's overall health) into the quality process. Diversification
activities include training, rewarding, supporting, and partnering
with groups that are embraced by the organization's TQM
initiatives. These are all things that will help in being successful with
total quality management.

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