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Chapter 7 TQM Principles and Practices

Mr. Mohd Zaizu bin Ilyas

Topics covered

a) Continuous improvement,

b) Employee empowerment,

c) Leadership and change

d) Teamwork in industrial practices.

(a) Continuous Improvement (Kaizen)

A kaizen is any planned action that causes a Current State to become outdated and that causes the productivity to permanently change for good.

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

Continuous Improvement (Kaizen)

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

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

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

Continuous Improvement (Kaizen)

7

Plus Productivity Every Kaizen should have a positive Productivity impact:

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

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

The best Kaizen result is when I can do both.

Continuous Improvement (Kaizen)

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

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

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

remain long in winner’s circle – Same goes to the company

Continuous Improvement (Kaizen)

Essential improvement activities

Continuous Improvement (Kaizen)

• Quality expert recommends 5 activities as a crucial to continuous improvement. There are in Figure 19-1;

Steps of applying Kaizen:

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

scheduling are replaced by smaller experiments

Continuous Improvement (Kaizen)

What are the 3M’S ?

• Muda- • Mura- • Muri -

Continuous Improvement (Kaizen)

What are the 3M’S ?

• Muda- 無駄(useless) • Mura-斑 （unevenness) • Muri –無理(impossible)

Continuous Improvement (Kaizen)

What are the 3M’S ?

• Muda- Any wasteful activity or any obstruction to the smooth flow of an activity.

• Activity = Work + Muda • Expenditure = Cost + waste

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

• Pushed to work • Overburdened

• Kaizen is meant to remove Mura, Muda , Muri

Continuous Improvement (Kaizen)

Standard Process Improvement Strategies Describe

the process

Standardize the process

Eliminate errors

the process

Simplify the process

Reduce sources of

variation

Bring the process under SPC

Improve the design

the process

Continuous Improvement (Kaizen)

Elements of Kaizen

• Figure 19-4

Kaizen implementation tools

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

• Kaizen Tools are; 1. Kaizen checklist 2. Kaizen Five-Step plan (5S) 3. Five W’s and One H 4. Five-M checklist

Kaizen Checklist

• Using checklist that focuses attention of employees on those factors that are most likely in need of improvement. – E.g; work methods, facilities, software tools

etc

• Figure 19-5

Kaizen 5 step plan (5S)

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

– Seiri (Straighten up) – Seiton (Put things in order) – Seiso (Clean up) – Seiketsu (Personal cleanliness) – Shitsuke (Discipline)

Five W’s and One H

WHO WHAT

WHERE WHEN WHY HOW

Kaizen ( 5W’s 1H)

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

Kaizen ( 5W’s 1H)

Man (Operator)

Machine

Material

Methods

Measurement

Kaizen (Five-M checklist)

(b) Employee Empowerment

Employee empowerment

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

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

Rationale; • Best way to increase creative thinking

and initiative on the part of employees. • Can be an outstanding motivator Issues; • Resistance to change

Employee empowerment

• Implementation of employee empowerment has 4 steps;

1. Creating a supportive environments 2. Targeting and overcoming 3. Putting the vehicles in place

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

4. Assessing, adjusting and improving

Employee empowerment

(c) Leadership

Leadership

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

(i) Create a vision and establish a mission for the organization

(ii) Set realistic quality improvement goals (iii) Identify customer requirements (iv) Lead the culture change to a team

environment (v) Active participation on strategic planning

and/or quality committees (vi) Lead the improvement effort

Leadership

i)Create a Vision and Establish a Mission for the Organization.

• The two essential elements of leadership are developing a compelling vision and (more importantly) living it.

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

Leadership

• The foundation for improvement is laid only when the people who do the work learn to solve their own problems instead of passing the buck.

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

ii)Set Realistic Quality Improvement Goals

Leadership

iii) Identify Customer Requirements

• Just providing a product and/or service is not good enough anymore.

• What good leaders do for their organization is to find ways to surprise and delight the customer with their products and/or their service.

Leadership

iv) Lead the Culture Change to a Team Environment

• The key to motivate everyone in the organization for a culture change, is to ensure everyone's involvement in the process.

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

empowering them to make decision. • Positive reinforcement

Leadership

• To unleash the creativity of the organization, leaders must change the organizational culture and structure to encourage innovation and creativity.

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

• By being participative, leaders encourage others to do the same.

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

v) Active Participation on Strategic Planning and/or Quality Committees

Leadership

• To unleash the creativity of the organization, leaders must change the organizational culture and structure to encourage innovation and creativity.

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

• By being participative, leaders encourage others to do the same.

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

v) Active Participation on Strategic Planning and/or Quality Committees

Leadership A) Strategic Planning

Seven Steps to Strategic Planning: (i) Customer Needs: to discover the future needs of

the customers (ii) Customer Positioning: the planners determine

where the organization wants to be in relation to the customers.

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

Leadership (iv) Gap Analysis: identify the gaps between the

current state and the future state of the organization.

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

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

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

Leadership B) Quality Committees • In typical organization, the committees is composed of

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

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

values, vision statement, mission statement, and quality policy statement.

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

Leadership • Create the total education and training plan • Determine and continually monitor the cost of poor

quality • Determine the performance measures for the

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

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

• Establish multifunctional project and work group teams and monitor their progress

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

Leadership vi) Lead the Improvement Effort

Leaders must: • Provide the opportunity to form teams • Recognize the need for both education and

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

effecting their own work • Encourage the employees to participate without

fear • Listen and then listen some more

Leadership

Leaders must (cont): • Provide timely feedback • Support, direct, coach the employees • Communicate with everyone in the organization

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

much as possible in everything within the organization

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

(d) Teamwork In Industrial Practices

Teamwork In Industrial Practices • To become successful in business, teamwork is

also a key element of TQM. • With the use of teams, the business will receive

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

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

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

Teamwork In Industrial Practices

There are mainly three types of teams that TQM organizations adopt: (i) Quality Improvement Teams or Excellence Teams (QITs) (ii) Problem Solving Teams (PST) (iii) Natural Work Teams (NWT)

Teamwork In Industrial Practices

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

• These are temporary teams with the purpose of dealing with specific problems that often re-occur.

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

Teamwork In Industrial Practices

ii) Problem Solving Teams (PST)

• These are temporary teams to solve certain problems and also to identify and overcome causes of the problems.

• They generally last from one week to three months.

Teamwork In Industrial Practices

iii) Natural Work Teams (NWT)

• These teams consist of small groups of skilled workers who shared tasks and responsibilities.

• These teams use concepts such as employee involvement teams, self-managing teams and quality circles.

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

Quality Circle

• Quality circle is a small group of employees in the same work area or doing a similar type of work who voluntarily meet regularly for about an hour every week to identify, analyze and resolve work-related problems, leading to improvement in their performance, and enrichment for their work life.

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

Quality Circle (Basic Aims)

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

development of the enterprise. • To respect humanity and build a better

workshop. • To satisfy the higher human needs of

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

referred to as Quality Circles.

Thank You!!!