CHAPTER 8: FACILITY AND WORK DESIGN Services must consider the volume of

demand, range of the types of services offered,

FACILITY LAYOUT degree of personalization of the service, skills of
employees and cost.
➢ Facility layout refers to the specific arrangement
of physical facilities. DESIGNING PRODUCT LAYOUTS
➢ Facility-layout studies are necessary whenever:
Products layouts in flow shops generally consist
1) a new facility is constructed, of a fixed sequence of workstation. Workstations are
generally separated by buffers to store work waiting for
2) there is a significant change in processing, and are often linked by gravity conveyors
demand or throughput volume, (which cause parts to simply roll to the end and stop) to
allow easy transfer of work.
3) a new good or service is introduced to
the customer benefit package,
2.1 ASSEMBLY LINE BALANCING
4) or different processes, equipment,
and/or technology are installed. Is a technique to group tasks among
workstations so that each workstation has- in the ideal
FIVE MAJOR LAYOUT PATTERNS: case– the same amount of work.
a. Product Layout For example, if it took 90 seconds per unit to
assemble an alarm clock and the work was divided evenly
Is an arrangement based on the among three workstations, then each workstation would
sequence of operations that is performed during be assigned 30 seconds of work content per unit.
the manufacturing of a good or delivery of a
service. 2.2 LINE BALANCING APPROACHES

Product layouts support a smooth and Line balancing is a production strategy that
logical flow where all goods or services move in involves balancing operator and machine time to match
a continuous path from one process stage on the the production rate to the Takt time. ... In other words,
next using the same sequence of work tasks and the quantities of workers and machines assigned to each
activities. task in the line should be rebalanced to meet the optimal
production rate.
b. Process Layout
Consists of a functional grouping of DESIGNING PROCESS LAYOUTS
equipment or activities that do similar work. In designing process layouts, we are concerned
For example, all drill presses or fax with the arrangement of departments or work centers
machines may be grouped together in one relative to each other.
department and all milling or data entry Cost associated with moving materials or the
machines in another. Depending on the inconvenience that customers might experience in
processing they require, tasks may be moved in moving between physical locations are usually the
different sequences among departments. principal design criteria for process layouts.
c. Cellular Layout
In general, work centers with a large number of
In a cellular layout, the design is not moves between the, should be located close to one
according to the functional characteristics of another.
equipment, but rather be self-contained groups
of equipment (called cells) needed for WORKPLACE DESIGN
producing a particular set of goods or services.
The techniques we have described address
d. Fixed Position Layout broad layout issues facilities. However, it is also
important to pay serious attention to design and layout
Consolidates the resources necessary to of individual workstations, not only in factories, but in
manufacture a good or deliver a service, such as every other facility where work is performed, such as
people, materials, and equipment, in one offices, restaurants, and retail stores.
physical location.
JOB DESIGN
Rather than moving work-in process
from one work center to another, it remains Involves determining the specific job tasks and
responsibilities, the work environment, and the methods
 CHAPTER 9: TQM EVOLUTION SERVICE QUALITY:
1. Quality of Customer Service
DEFINITIONS OF QUALITY - Customer service is important in every
business. In a service industry, meeting
Quality means different to different people: customers and finding out their
1. Customer-Based: Fitness for use, meeting requirements is more challenging.
customer expectations.
2. Manufacturing-Based: Conforming to design, - Therefore, ability to satisfy customer
specifications, or requirements. Having no depends on the quality of customer
defects. service. This includes but not limited to:
3. Product-Based: The product has something that • How well the customer is received?
other similar products do not that adds value. • How well the implied requirements
4. Value-Based: The product is the best are elucidated?
combination of price and features. • How well the customer is
5. Transcendent: It is not clear what it is, but it is treated/handled/satisfied?
something good...
2. Quality of Service Design
TOTAL QUALITY MANAGEMENT (TQM)
Is customer-oriented management philosophy - since services are usually made to
and strategy. It is centered on quality so as to result in order, it is important that the service
customer delight. is designed as per the requirements
of the specific customer.
The word “TOTAL” implies that all members of
the organization make consistent efforts to achieve the - quality of service design in turn
objective of customer delight through systematic efforts depends on the quality of customer
for improvement of the organization. service.

3. Quality of Delivery
DIMENSIONS OF QUALITY - quality of delivery is important in
any sector, but more crucial in case
of services. Defects on delivery
PRODUCT QUALITY: should be zero to satisfy the
customers.
A. FUNCTIONALITY
- refers to the core features and characteristics ADDITIONAL ATTRIBUTES OF QUALITY:
of a product.
B. RELIABILITY 1. Timeliness
- the probability of a product performing its - Delivery on schedule as per
intended duty under stated conditions without requirements of the customer is a
failure for a given period of time. must both in the product sector as
well as in service sector.
C. USABILITY - No customer likes waiting. Any
- a product should be easily usable. The customer anticipated delay in schedule should
should be able to use the product easily without be communicated to customer well
the help of experts. in advance.
D. MAINTAINABILITY 2. Aesthetics
- refers to the ease with which a product can be - A product or service should not only
maintained in the original condition. perform well but also appear attractive.
- Products may become defective while in use or - Aesthetics may include but not limited to
in transit. It should be repairable so as to retain the appearance of the product, the
the original quality of the product at the lowest finish, color, etc.
cost at the earliest possible time. 3. Regulatory Requirements
E. EFFICIENCY - Regulatory requirements as stipulated
- being able to accomplish something with the by the local and federal governments
least waste of time and effort. should be fulfilled by the product or
service.
- this is applicable to most products. - For instance, an automobile has to meet
Euro II standards in respect of emission
 - For instance, providing belts for persons Armand V. Feigenbaum
sitting in the front seat in a car is a - was the originator of “total
requirement of the society. Hence, the quality control”, often referred to as total quality.
car manufacturer should provide belts
for the passengers travelling in the front He defined it as:
seat. “An effective system for integrating quality
development, quality maintenance and quality
5. Conformance to Standards
improvement efforts of the various groups within an
- products or service should conform to the stated
organization, so as to enable production and service at
and implied requirements of customers. Where
the most economical levels that allow full customer
applicable, they should conform to applicable
satisfaction”.
standards such as national standards,
international standards and industry standards.
He saw it as a business method and proposed three steps
- For instance, Electro-Magnetic Interference
to quality:
(EMI) from a PC should be within the limits
prescribed by the corresponding standard. • Quality leadership
• Modern quality technology
EVOLUTION OF QUALITY • Organizational commitment

DR. WALTER A. SHEWHART (1891-1967) Philip Crosby

- worked in Western Electric Company and AT&T, - was Vice President of International Telephone
USA. and Telegraph (ITT). His absolutes of Quality are
- he advocated Statistical Quality Control (SQC) very relevant to TQM.
and Acceptable Quality Level (AQL). AQL is the 1. Quality is conformance to requirements, nothing
foundation of today’s Six Sigma. more or nothing less and certainly not goodness
- he is considered to be the father figure of SQC, or elegance.
who developed control charts for quality 2. Quality has to be achieved by prevention and not
assessment and improvement. by appraisal.
- Dr. Shewhartt also developed the PLAN, DO, 3. The performance standard must be zero defect
CHECK, ACT (PDCA) cycle for continuous and not something close to it.
improvement, which is in use even today. 4. The measurement of quality is the price of non-
conformance, i.e., how much the defects in
DEMING W. EDWARDS (1900-1993) design, manufacture, installation and service
- Deming, who had become frustrated with cost the company. It is not indexes, grade one or
American managers when most programs of grade two.
statistical quality control were terminated once
the war and government contracts came to an Dr Kaoru Ishikawa
end, was invited to Japan in 1954 by the Union of - made many contributions to quality, the most
Japanese Scientists and Engineers (JUSE) noteworthy being his total quality viewpoint,
- Deming was the main figure in popularizing companywide quality control, his emphasis on
quality control in Japan and regarded as National the human side of quality, the Ishikawa diagram
Hero in that country. and the assembly and use of the “seven basic
- He believes that quality must be built into the tools of quality”:
product at all stages in order to achieve a high
level of excellence. – Pareto analysis ------ which are the big problems?
- His thoughts were highly influenced by Walter – Cause and effect diagrams ------what causes the
Shewhart who was the proponent of Statistical problems?
Quality Control (SQC). He views statistics as a – Stratification ------ how is the data made up?
management tool and relies on statistical – Check sheets ------ how often it occurs or is done?
process control as means in managing variations – Histograms ------ what do overall variations look like?
in a process. – Scatter charts ------ what are the relationships between
factors?
JOSEPH M. JURAN (1904) – Process control charts ------ which variations to control
- Juran - is a founder of the Juran Institute in and how?
Wilton, Connecticut.
- He promoted the concept known as Business BASIC TERMS RELATED TO QUALITY
Process Quality, which is a technique of Cross- QUALITY CONTROL (QC)
Functional Quality Improvement.
Quality Control or QC may be defined as:
 In simple terms, QC is inspection or appraisal of QUALITY IMPROVEMENT
products and services to ensure that the stated - This process aims at attaining unprecedented
requirements are fulfilled. This was the only technique levels of performance, which are significantly
practiced during World War II. Since it was found that better than the past level.
QC was essential but not sufficient, Quality Assurance
techniques were developed after the war. STRATEGIC PLANNING
- Strategic Planning is important for any business.
QUALITY ASSURANCE (QA) It involves making plans for the following, in
particular:
- All the planned and systematic activities • Business value
implemented within the quality system, and • Investment in machinery and
demonstrated as needed, to provide adequate equipment
confidence that an entity will fulfill the • Manpower to be hired
requirements for quality. • Budget
• Product diversification
- The purpose of QA is to fulfill the quality
• Markets to be served
requirements of an entity, i.e., product or
• Strategies for improving profits, etc.
service, with adequate confidence by the
supplier. This requires implementation of all the
- Strategic planning is carried out generally at
activities planned for building quality into
annual intervals and is carried out using a formal
product.
structured approach. The strategic planning is
kept confidential due to obvious reasons.
Building quality into the products requires the
following:
QUALITY MANAGEMENT (QM)
✓ Quality of Design - it refers to how well the
- According to ISO 9000 standards, Quality
product or service has been designed to meet
Management comprises “all activities of the
the current and future requirements of
overall management function that determine
customers and add value to all the stakeholders.
the quality policy, objectives and
✓ Quality of Conformance - this indicates the responsibilities and implement them by means
consistency in delivering the designed product. such as quality planning, quality control, quality
Product quality in turn depends on the quality of assurance, and quality improvement within the
all processes in the organization. Therefore, it quality system.
involves all activities that will ensure the
- The quality system consists of the organizational
conformance of the products to its requirements
structure, procedures, processed and resources
consistently.
needed to implement quality management.
✓ Quality of Performance - it is an indicator of the
performance of end product. This in turn JUST-IN-TIME (JIT)
depends on the quality of design (including the
- Tai-ichi Ohno of Toyota motors refined an idea
reliability of the product) and quality of
for Just-In-Time. This means that at no stage of
conformance.
manufacturing nobody or nothing waits for
✓ Quality of Service - selling a product is not the anything. This is to ensure that there is no
end of the business. It is the quality of associated wastage of machinery, materials and manpower.
services rendered that adds value to the product. JIT focuses on right scheduling so as to keep
Quality of service involves all activities that will inventory as low as possible. This requires a
enable the customer to procure and use the perfect partnership between supplier and
product without any hassles. customer.

QUALITY PLANNING (QP) CHAPTER 10: Continuous Process

- In order to consistently meet customer
requirements, the quality of 4Ms namely—Man,
Improvement
Machine, Material and Method need to be
ensured. The requirements of 4Ms are to be TQM
identified in the form of quality objectives. - means gradual and continuous improvement of
the process within the organization. TQM consist
- Quality Planning refers to the activities that
of finding new opportunities for improvements
establish the objectives and requirements for
 Juran’s Trilogy The 5’s Practice 5. Call for suggestions from workers
Kaizen Three MUs 6. Enabling team work
Kaizen Blitz The Seven Deadly Waste 7. Improving systems in the organization

JURAN’S TRILOGY THREE BASIC PRINCIPLES OF KAIZEN

- Juran brings out the financial results are I. Work place effectiveness
achieved in an organization through three II. Elimination of waste, strain and
managerial processes namely: discrepancy
III. Standardization
• QUALITY PLANNING
• QUALITY CONTROL
I. Work place effectiveness
• QUALITY IMPROVEMENT
• Japanese have developed the 5S tools for
addressing the work place effectiveness
KAIZEN
- Kaizen is a Japanese word
II. Elimination of waste, strain and discrepancy
- It means gradual, orderly and continuous
• Kaizen is achieved through application of 5S tools
improvement
for workplace effectiveness and elimination of
- Kaizen does not need any capital investment, but
three MU’s
requires time and efforts of every employee in
Muda – Waste
the organization, right from the top
Muri – Strain
management.
Mura – Discrepancy
- Calls for never ending improvements, means
that improvement is not a one-time activity, but
The following are to be reduced and finally eliminated:
a continuous activity.
Kai = Change Zen = Good • Human resources
• Production volumes
TWO ACTIVITIES OF KAIZEN • Inventory (materials)
• Time
MAINTENANCE • Working space
• Machinery
- Involves activities directed at maintaining
• Facilities
current technological, managerial and operating
• Tools and jigs
standards.
• Thinking
IMPROVEMENT
STANDARDIZATION
- Aims at revising the current standards
• Kaizen stresses standardization of processes,
- Kaizen is different from innovation
materials machinery, etc., with the following C
- Innovation aims at dramatic improvement of
objectives:
the existing processes
- Kaizen aims at small incremental improvement 1. Represent the best, easiest and safest
in the existing processes way to carry out a job in the form of
operating procedures and work
KAIZEN ACTIVITIES instructions
2. Represent the best way to preserve
1. Finding new ways or improving the ways in which
know-how and expertise and
the task are currently carried out
standardize the procedures for the same
2. Improving working environment
3. Evolve effective means to measure
3. Improving processes
performance and standardize the same
4. Improving capability of machinery through
4. Standardize all the procedures that are
periodic as well as preventive maintenance
used in the organization for the
5. Improvement usage of tools and fixtures
maintenance and improvement of
6. Improvement of human resources through
process
training and job rotation
5. Standardize the training programs
6. Standardize the audit for diagnosing
Top management have to take keen interest in the
problems
following activities towards kaizen:
7. Standardize the procedures for
preventing occurrence of errors and
1. Maximizing efficiency and productivity of
minimizing variability
 • Kaizen will be successful only when it is process 6. Evaluate the Plan
oriented
• Evaluate the results of the action items
• It is important to recognize that any organization performed in order to verify the actual
will have problems and hence the employees level of improvement
should be encouraged to admit when there is a
• Standardize work practices and follow
problem
up to ensure gains are sustained.
• A suggestion system is an integral part of kaizen.
The management should encourage the 5S Practices
employees to give suggestions and their
involvement in improvement process. - Kaizen is a carefully evolved strategy by
• Kaizen should be prioritized based on the impact Japanese for improved competitiveness of
on the customers. business. It is more than just a tactical weapon.
• Collaboration between the cross- functional It is also a collection of tools 5s practice are:
team, the process owners (those who carry out I. Sort
the job regularly) and the management is II. Set into order
essential for success of kaizen III. Shine
• Quality Circles can become part of kaizen since it IV. Standardize
is a group-oriented suggestion system V. Sustain

KAIZEN IMPLEMENTATION Seiri (sort)

The organizations embrace kaizen in 2 ways as - Separate out all unnecessary things and
given below: eliminate them.
I. Gradual improvement of processes - Separate tools, machinery, products,
II. Kaizen blitz inspection, work in progress and documentation
into necessary and discard unnecessary items.
KAIZEN BLITZ
Seiri means “separating the things which are
• Is a quick improvement methodology necessary for the job from those that are not and keeping
• To unleash employee creativity and dramatically the number of the necessary ones as low as
improve operation overnight possible and at convenient locations”.
• Usually completed in a single week
• The solution are implemented quickly Seiton (Straighten/Set in order)

SIX STEPS OF KAIZEN • To arrange necessary items in a neat, proper

manner so they can be easily retrieved for use
1. Discover Improvement Potential and to return them to their proper locations
• Learn to see waste or improvement after use.
potential around the work areas. Steps for enabling neatness in the organization:
• Develop mindset and attitude required
Step 1: Plan to arrange neatly
for people to be successful in process
Step 2: Decide where things should be
improvement.
stored.
2. Analyze the Current Methods Step 3: Be consistent in the following rules.
• Analyze current methods of various
work-related processes. Seiso (Scrub/Shine)
• Examples of analytical methods include
• To clean and inspect respective work places
work analysis, motion analysis, time
thoroughly, so that there is no dust on the floor,
study, standardized work, machine loss
machinery and equipment. Keep machinery and
analysis, and material flow analysis
work environment clean.
3. Generate Original Ideas
• Apply techniques for stimulating original Seiketsu (Standardize)
ideas and synthesizing solutions.
• Standardize systematizes everything that just
4. Develop an Implementation Plan happened and turns one-time efforts into habits.
• Create effective plan for Standardize assigns regular tasks, creates
implementation, including schedules, and posts instructions so these
communication and tracking purposes. activities become routines.
When possible, make changes quickly
EIGHT TYPES OF WASTE 3. Cease Dependence on Mass Inspection
• Doing things right and doing it right the
• Over-production
first time would reduce the dependence
• Producing more than what the customer on inspection, in fact it would be
needs eliminated. TQM is aimed at eliminating
• Waiting inspection in the long run through
• Employees waiting for another process prevention.
or a machine/tool
• Motion 4. End the Practice of Awarding Business on the
• Extra physical/mental motion that Basis of Price Tag Alone
doesn’t add value
• Transportation • This point addresses supplier
• Moving product from once place to partnership. The supplier should be
another selected on the basis of the following 4
• Inventory parameters:
❖ Quality
• Building and storing extra products the
❖ Price
customer has not ordered
❖ Delivery
• Defects
❖ Service
• Reprocessing or correcting work
• Over-processing 5. Constantly Improve the System of Production
• Adding excess value when the customer and Services
does not require it • the processes in the organization need
• Intellect continuous improvement. TQM is aimed
• Not using employee’s full intellectual at continuous improvement of processes
contribution so that the quality of products and
services improve continuously. The very
CHAPTER 11: LEADERSHIP purpose of TQM is the constant
improvement of the system for
ELEMENTS OF TQM production and services.
• TQM is application of a number of activities with
6. Institute Training
perfect synergy. The various elements of TQM
are illustrated below: • The abilities of employees should be
• Commitment & Leadership of Top improved and harnessed only through
Management training. Deming advocates,
• Planning & Organization “Management needs training to learn
• Tools & Training about the organization, all the way from
• Education & Training incoming material to the customer.”
• Involvement Today every Japanese employee
• Teamwork receives six weeks of training every year.
• Measuring & Feedback This is the proof of Deming’s teachings
• Working Together and the adoption of his concepts by the
Japanese.
DEMING’S 14 POINTS FOR TOP MANAGEMENT
7. Adopt and Institute Leadership
DEMING’S 14 POINTS • Deming urges that the senior employees
1. Create Constancy of Purpose for Improvement must conduct themselves as leaders
of Products and Services rather than managers. The difference
between the characteristics of managers
• The top management must believe that and leaders are given as follows:
their business will continue for 100
years. Such a confidence will motivate LEADER MANAGER
them to aim long-term success. It will • Proactive -Reactive
infuse a constant quest for innovation, • Coaches -Finds fault
improvement of processes, products • Understands process -Doesn’t care
and services. . to understand
• Moves around -Sits in his chair
8. Drive Out Fear 12. Remove Barriers that Rob People of Pride of
Workmanship
• Employees should be encouraged to
suggest improvements and new ideas, • The organization should establish the
ask questions about the existing process, right processes and proper system for
etc. if freedom to express new ideas is quality management. This will lead to
curtailed, then the employees will carrying out jobs correctly. If the work is
continue to do what they are doing. This carried out correctly, it gives pride to
will stunt improvement. those who did. Any barrier that robs the
managers or workers their pride of
9. Break Down Barriers Between Staff Areas workmanship should be removed. Every
employee should be encouraged to work
• Quite often, the various teams in the
as much as he can. Removing the
organization stop communicating with
obstacles to this pursuit is the
each other. The teams, over the years
responsibility of the top management.
become watertight compartments.
Every team may prove that it is the best.
13. Encourage Education and Self-improvement for
But organization as a whole may be
Every One
doing poorly due to lack of
communications between the teams! • Employees should be encouraged to
TQM dictates removal of barriers pursue higher education and training
between the departments. while in service, for improving the skills
or updating knowledge. If an employee
10. Eliminate Slogans, Exhortations and Targets for undergoes education or training, it will
the Work Force improve his ability, which will be
beneficial to the organization. Hence,
• Here, Deming talks about slogan and
employees should be motivated and
targets for increasing productivity. He
encouraged to improve their knowledge
says that barriers to quality and
and skills through various channels.
productivity exist within the
organization itself. Hence, to achieve
14. Take Action to Accomplish the Transformation
higher productivity, the system has to be
improved for which, management is • The top management should understand
responsible. the above 13 points and then enable
their employees to understand them.
• The posters are directed at the wrong
They should interpret the 13 points
people namely the workers. They only
properly and educate their employees
generate “frustration and resentment”
appropriately. They should have the
among workers. The best strategy for
courage to break the status quo and
improvement is to correct defects in the
improvement their employees,
system, not slogan or posters.
processes, system and thereby their
products continually.
11. (a) Eliminate Numerical Quota for the Work
Force TEN STRATEGIES FOR TOP MANAGEMENT
• Setting a target for production, say 1. Proactive Management
producing 1000 chairs per shift, may • The leaders have to be proactive. They
affect the quality of workmanship. This
have to foresee what will happen in the
forces the workers to ignore quality and future and take advance action to
concentrate on quantity. This is prevent the occurrence of the problems
detrimental to the organization. On the as prevention is always better than cure.
contrary, standards for quality
workmanship, etc. could be prescribed. 2. Adventurous and Bold Change Management
Numeric quota is given assuming that • Be Adventurous: Successful people are
the worker may be just sitting around. those who have taken the challenges
This is not the right approach. and grown beyond expectations. This
calls for adventurous decision-making
11. (b) Eliminate Numerical Goals for People in and high self-esteem among the senior
Management management persons. They should
• Setting goals without the necessary visualize the improvements needed and
 3. Do It Right First Time (DIRFT) 5. Care for little things and accumulate gains
• TQM is a continuous process
• Take Right Decisions: In every
improvement program and aims at one
organization a number of decisions have
step at a time. Therefore, the
to be taken by the CEOs, managers and
management should aim at scaling
supervisors. They are the leaders in the
greater heights through small and
organizations. Before making every
continuous improvement in every
business decision, the leaders should
process.
carry out the following sequence of
activities:
6. Ensure economic performance
• Plan the decision- weigh the
✓ Importance of Economic Performance:
pros and cons
• While marching on the TQM path, the
• Foresee the impact of the
CEO should not lose track of economic
decision on the organization
performance of the organization. All
• Take opinion of the right people
TQM activities should lead to better
• Involve the concerned
economic performance in the long run. If
(employees who will be affected
an organization is implementing TQM
by the decision) correctly, then the bottom line will
• Implement the decision improve automatically.
• Persist
✓ Quality should Increase Productivity Also:
Why People don’t Do it Right the First Time? • The objective of continuous quality
• Do It Right First Time (DIRFT) concept was improvements is to satisfy the
advocated by Philip Crosby. This is a time-tested customers. Improving quality for
concept and employees and organizations customer satisfaction should definitely
should adopt DIRFT. The question is why people lead to increase in overall productivity.
do things wrong and do it and over again? It This is not only satisfies external
could be due to some of the reasons as given customers, but also the internal
below: customers.
Why Things are Done Wrong?
7. Management by Walking Around (MBWA)
a. The employee does not know what to do clearly,
• The concept of Management by Walking
leave alone how to do!
Around was postulated by Tom Peters.
b. If he knows how to do, he is not motivated
In the author’s opinion Management by
enough to do it right the first time
Walking Around is one of the most
c. He may not have the right tools to do a good job.
effective tools of management and
d. He does not have the necessary education or
leadership for the growth of the
training to know how to DIRFT.
organization. But the supervisors have to
e. Probably his seniors have trained him to do the
be convinced that MBWA will not affect
wrong way.
their authority. They will be convinced
f. He is not proud of the job he is doing.
only when their authority has not
g. He does not get appreciated when he does it
eroded in reality. Their apprehension
right.
has to be removed to make MBWA
4. Continuous Preventive Action successful.

✓ Corrective Action is Post-mortem 8. Measuring for success primarily involves,

• what is corrective action? When a looking for, measuring and analyzing the
product or service is delivered, if the feedback from customers, either internal or
customer finds defects or faces external. An organization marching towards
problems. Then the deficiencies are Total Quality Management (TQM) has to make
registered and corrected by the efforts to measure how well the organization is
organization. It would only be a post- performing in terms of fulfilling the customers’
mortem of the process. It does not needs and expectations.
satisfy the customer; in fact, the
customer is frustrated. 9. Never rest on laurels, continue to improve.
• The tale of tortoise and rabbit teaches us
✓ Prevention is better than cure: the lesson that one should never rest on
 10. Build a Virtual Organization ACT
• Gone are the days when vertical • Standardize the procedure that met or exceeded
integration was a preferred strategy. But the goal
the situation has changed now. A • If there were gaps, improve the plan and carry
smarter way of doing business is to out PDSA again
create a near virtual corporation. Here,
GETTING THINGS DONE:
the core part is manufactured and the
rest bought from qualified vendors. This TQM has to be implemented by the employees.
has been found to be highly effective In every organization, management has the
and profitable. responsibility to ensure that the employees do their
duty. Some of the points, which will help in getting things
Chapter 12: TQM IMPLEMENTATION done by employees so as to result in TQM, are briefly
discussed below:
INTRODUCTION…
The top management always leads the 1. RECOGNITION
implementation of TQM. TQM is based on self-control, - Recognition of the contributors, both
which should be embedded in each employee, team, employees and suppliers, will lead to
divisions, etc. The real initiative for improvement comes accelerate implementation of TQM.
from the top management. Therefore, the CEO has to Recognition is a must in order to
commit not only the organization’s resources for making motivate the employees to bring out
TQM happen, but also be prepared to invest his own time solutions to the problems in the
for making things happen. organization. It may also be required to
Let’s get started! distinguish between the performers and
the non-performers. The idea is to make
➢ Shewhart developed Plan, Do, Check, Act the non-performers to perform and the
(PDCA) cycle for improvement of processes. performers to perform still better.
➢ Deming modified it as PDSA cycle. There are four
phases—Plan, Do, Study and Act. 2. PRAISE AND PUNISH
- There are 4 types of management
PDSA CYCLE techniques as given below:
a) Authoritative
➢ The “PLANNING” phase is the preparation phase b) Authoritative and Benevolent
where the actions proposed to be taken for c) Consultative
implementation of TQM are determined and d) Participative
documented after a detailed analysis.
➢ AUTHORITATIVE
➢ The “DO” phase involved implementation of the - refers to a management style where the
actions on a pilot basis. leader is in complete control. An
➢ The “STUDY” phase is where the results of pilot authoritative leader is one who sets the
implementation are measured and analyzed to goals, determines the processes and
see whether there is a real improvement. During oversees all steps it takes to reach those
this phase one has to understand which plan goals with little or no input from team
worked and which did not. This may either lead members.
to confirming the new process in the “ACT” ➢ BENEVOLENT AUTHORITATIVE
phase or modifying the plan and revising the - -Superiors have more trust in their
cycle again. The PDSA cycle repeats itself for employees than do managers in an
each improvement action proposed. Exploitative Authoritative system, and
therefore are more willing to reward
The important actions taken during each individuals for good performance.
phase of PDSA are given below:
➢ CONSULTATIVE
PLAN - in this style, managers ask for the
opinions and thoughts of their team,
• Establish objectives
consulting the viewpoints of every
• Establish a plan that will facilitate achieving the
member of their team. The manager will
goal
make the final decision, but they will
• Establish a measurement system
consider all of the information given by
team members before they do so.
DO
 3. 80 PERCENT OF SUCCESS WILL BE DUE TO • Non-cooperation of first line managers and
PERSONAL CONTACT middle managers
- The improvement teams alone cannot • Lack of clarity in vision
cause improvement. The empowered • Losing track of business performance
teams also may not cause improvement • Not involving customers and supplier
by themselves. It is the support of the QC • Belief that training leads to employee attrition
members and the CEO, which would • Resistance to change at all levels
help the process owners to cross the • Ineffective TQM facilitator
barriers and improve the process, since • Wrong consultant
resistance to change is a universal • Lack of consistency and persistence by the
phenomenon. management
• Haste and thereby waste
4. ACCUMULATE SMALL GAINS
• Looking for immediate gains
- Continual improvement means
• Not investing adequate resources
incremental improvements. One
• Quick obsolescence of products
improvement at a time can lead to a big
success over time. But such small • Losing confidence in the middle of the journey
improvements should follow each other, due to various reasons
and the management should • Working harder than smarter
accumulate these improvements. Even • Tough competition leading to frequent price war
after business process re-engineering, • Unable to find champions within the
continuous improvements are to be organization
made. Management should realize that • Not properly staffed—to many or too less
many small improvements would only numbers of employees
lead to bigger improvements and should
encourage and appreciate small The barriers can be overcome by dedicated work
improvements made in the organization. force with a strong and committed leadership.

5. BUILD CREDIBILITY-INSIDE AND OUTSIDE

- TQM will help the organizations to
improve their reputation and credibility
not only within the organization but also
amongst its customers. This should be
harnessed by adopting appropriate
strategies. One of the strategies should
be to talk about success on account of
TQM within the organization and the
public forums. The image building
exercise is crucial for the success of TQM
in the organization and CEO and the
senior executives have the responsibility
to do so.

6. PERSIST
- The QC members and the CEO should be
consistent. They should take decisions
based on detailed analysis. They should
weigh the pros and cons before taking
any decision. They can consult as many
employees as possible, but once a
decision is taken, they should not look
back and should be consistent. Once an
action is taken for improvement and if
that is found to be effective, they should
persist.

BARRIERS TO TQM IMPLEMENTATION