UNIT II

TQM PRINCIPLES
PART A
[Link] do you mean by strategic planning?
Strategic planning sets the long-term direction of the organization in which
it wants to proceed in future.
[Link] is meant by reactive and proactive behavior?
Proactive behavior: According to behavioural theory of motivation,
people would get motivated to work for recognition and reward. They
have a like for work Reactive behavior: Some people have a dislike for
work .Punishment only motivate the people
[Link] are the conditions necessary for empowerment?
Everyone must understand the need for
change The system needs to change to the
new paradigm
The organization must provide information, education and still to
its employees.
[Link] four common barriers to team progress.
Insufficient training, incompatible rewards and compensation, lack of
planning and lack of management support.
[Link] is performance appraisal and what is the use of performance
appraisal?
Performance appraisal is a systematic and objective assessment or
evaluation of performance and contribution of an individual.
Uses:To identify employees for salary revision, promotion, transfer,
demotion and lay-off
To provide useful feedback to the employees and allow them to take
corrective measures to improve performance further.
[Link] is 5S’s and list its benefits.
The 5S practice is a house keeping technique used to establish and
maintain a productive and quality environment in an organization.
SEIRI, SEITON, SEISO, SEIKETSU and SHITSUKE
Benefits:
Work place become clean and better organized
Results in good company image and generates more
business Shop floor and office operations become
easier and safer.
Contribute to productivity ,quality and employee morale
7. Explain supplier selection.

Suppliers are selected based on their performance in terms of cost,

quality and delivery reliability

List the characteristics of successful quality leaders.

The customers

first Value people

Buildsupplierpartnership
Empowerpeople
Demonstrate involvement/commitment
Striveforexcellence
Explain and deploy policy
Improve communication
Promote teamwork
Benchmark continuously
Establishsystem
Encouragecollaboration

9. List out any four benefits of employee involvement.

Employee involvement is the backbone of a TQM movement
An effective TQM effort requires the total involvement from
person at all levels in the organization
Employee involvement leads to meet the organization goals and
objectives It also improves the quality and productivity at all levels
of the organization.
10. What are the important habits of quality leader?

What are the traits of successful leaders?

Be proactive, Begin with the end in mind, Put first things first,
Think win/win, seek first to understand..Then to be understand, synergies,
sharpen the saw

11. What do you understand by “supplier rating”?

A supplier rating system, also referred as a scorecard system, is used

to obtain an overall rating of supplier performance.
12. List the benefits of team work.
Teamwork is the cumulative action of the team during which each
member of the team subordinates his individual interest and opinions to
fulfill the objectives or goals of the group
Enhanced performance
Employee benefits
Reduced costs
Organization enhancements
Increase productivity
Employee loyalty

13. What is supplier partnering?

Supplier partnering is defined as a continuing relationship, between a
buying firm and supplying firm, involving a commitment over an extended
time period, an exchange of information and acknowledgement of risks and
rewards of the relationship
14. What is meant by customer retention?
Customer retention is the most difficult job an organization is to
undertake. Any organization can not dispense with this, because it is the
root of business improvement. Customer retention is more powerful and
effective than customer satisfaction. Customer satisfaction surveys ,
interviews with customers and quick redressal of their grievance must be
undertaken as important activities by any organization. In fact customer
retention is the connection between customer satisfaction and the so
called bottom line.
15. List the key elements of supplier partnering.
The three key elements for partnering partnering are
1. Long term commitment
2. Trust
3. Shared Vision

16. How employee involvement can be improved in an organization?

Recognition is a form of employee motivation in which the organization
openly acknowledges the positive contribution an individual or team has
made to the success of the organization. It may be either in oral or
writing praising the deserving employee by presenting certificates or
members .they may also be rewarded by cash awards. Reward is
something tangible such as cash award to promote desirable behaviour.
Reward can be delayed but recognition cannot be delayed & should be
on a timely basis.

PART B
1. Explain the phases of PDSA cycle with suitable illustration.
PDCA is otherwise known as Deming Cycle or Deming Wheel. It is an
effective continuous improvement technique. Deming encouraged a
systematic approach to problem solving and promoted the widely known
Plan, Do, Check, Act(PDCA) cycle. The PDCA cycle is also known as
Deming cycle or Deming wheel.
 PLAN What is needed
DO It
CHECK That it works
ACT To correct problems or
improve performance

It can be used to test ideas for improvement quickly and easily based on
existing ideas, research, feedback, theory, review audit etc..
It encourages starting with small changes, which can build into large
improvements in the service through successive quick cycles of change.
It is a universal improvement methodology ,the idea is to constantly
improve and thereby reduce the difference between the requirements of
the customer and the performance of the process

Phases of PDSA cycle:

Phases Description

Define the problem

the problem

Plan
 experiment to test the proposed improvement.
Collection of data is essential
Do Train all involved employees in the use of quality
improvement methods and techniques

Check Verify whether the improvement has been

successful or not

Act to implement proven [Link] choices

are;introduce the plan,adjust or reject it
Act

procedures so all employees are well-informed on

how to handle the feature.

BENEFITS OF PDSA CYCLE

• Daily routine management for the individual and or the team
• Problem solving process
• Project management
• Continuous development
• Vendor development
• Human resource management
• New product development
• Process trials

2. What is meant by strategic planning? Narrate the seven steps

procedure of strategic planning cycle.
Strategic planning can be defined as the process of deciding on
objectives of the organization, on the resource used to attain these
objectives and on the polices that are to govern the acquisition, use and
disposition of these resources.
Seven steps procedure of strategic planning cycle:
Step 1: Identification of customer needs
The basic steps are the Identification of customer needs and their wants.
An organization must seek its customer‟s requirements, expectations and
assess future trends before developing a strategic plan
Step 2: Determination of customer positioning
The second requires the planners to determine its positioning with
regards to its customers. Various alternatives such as whether the
organization should give up, maintain or expand market position should be
considered. In order to become successful, the organization should
concentrate and consolidate its position in its areas of excellence.
Step 3: Predict the future
The planners must predict future conditions that will affect their product
or service. To help predicting the future, the tools such as demographics,
economic forecasts, and technical assessments or projections may be used.
Step 4: Gap analysis
The planners must identify the gaps between the current state and the
future state of the organization. This is also known as value stream
mapping. for identifying the gaps, an analysis of the core values and
concepts and other

techniques.
Step 5: Closing the gap
Now the planners should develop a specific plan to close the plan. This
is also termed as process improvement. By assessing the relative
importance and relative difficulty of each gap, planners can close the gap.
Step 6: Align the plan with the mission and vision
Now the revised plan should be aligned with the mission and vision and
core values and concepts of the organization. Organization should embrace
quality as an essential ingredient in their vision, mission and objectives.
Step 7: Implementation of the plan
 In order to implement the action plan, resources must be allocated to
collecting data, designing changes and overcoming resistance to change.
Also the planners should monitor and assess the result of the strategic plan.

3. What is a team? Describe the characteristics of a successful team

A team can be defined as a group of people working together to
achieve common objectives or goals Team work is the cumulative actions
of the team during which each member of the team subordinates his
individual interest and opinions for the fulfilling of objectives of the group.
CHARACTERISTICS OF SUCCESSFUL TEAMS
1. Sponsor: In order to have effective liaison with quality council, there
should be sponsor. The sponsor is a person from the quality council; he is
to provide support to the organization

2. Team Charter: A team charter is a document that defines the team„s

mission boundaries, the background of the problem, the team„s authority
and duties and resources. It also identifies the members and their assigned
roles – leader, recorder, time keeper and facilitator.
3. Team Composition: Not exceeding 10 members except natural work
team and self managed teams. Teams should be diverse by having
members with different skills, perspectives and potential
4. Training: The team members should be trained in the problem solving
techniques team dynamics and communication skills
5. Ground Rules: The team should have separate rules of operation and
conduct. Ground rules should be discussed with the members, whenever
needed it should be reviewed and revised
6. Clear objectives :The objective of the team should be stated clearly.
Without the clear objective, the team functions are not to be effective.
7. Accountability: Periodic status report should be submitted to quality
council for review.
8. Well defined decision procedure: The decision should be made clearly
at the right time by the team.
9. Resources: Adequate information should be provided to the team
whenever needed.
10. Trust by the management: Management must trust the team to
perform the task effectively. They must trust the members and belief each
other.

11. Effective problems solving: Problems solving methods is used to

make effective decisions.
12. Open communication: Open communication should be encouraged ie,
everyone feels free to speak in the team whatever they are thinking ,
without any interruptions.
13. Appropriate Leadership: Leader is important in every team. Leader is
a person who leads the team, motivate the team and guides the team in a
proper direction.

14. Balanced participation: Everyone in the team should involve in team

activities by voicing their opinions, lending their knowledge and
encouraging other members to take part.

15. Cohesiveness: Members should be comfortable in working with each

other and act as a single unit, not as individuals or group.

4. Discuss different types of team and stages of team

development TYPES OF TEAMS
Process improvement team: Involved in improvement of sub processes or
processes. Usually has 6-10 members. Disbanded when the objective is
reached. May include the local supplied and customer depending on the
location
Cross functional teams: 6-10 members temporary team. Members are Top
management level from various functional areas of management. Discuss
complex problems and break down into smaller parts to refer it to various
departmental teams for further solution.
Natural work teams: Not voluntary and the total work unit is part of the
team. Manager also a part of the team and the management selects the
projects to be improved. Managers must also ensure that the entire team is
comfortable with each other.
Self directed / self managed work team: Extension of natural work teams
but here the group of individuals is empowered not only to do work but
manage it. No manger will present but a coordinator (Which will be
normally rotated among members) will be appointed.
STAGES OF TEAM DEVELOPMENT
• Forming stage- Initial stage with only group of individuals and no

team work. Team purpose, roles are created.

• Storming Stage -Initial agreement roles are challenged. Hostilities,

emerge which may be resolved

• Norming Stage-Formal informal relations get established.
• Performing Stage -Team operates in a successful manner with trust,

openness, healthy conflict and decisiveness among the members.

• Maintenance stage – Functioning should not deteriorate with time

Evaluating Stage – Evaluating team performance

5. What is 5S?Explain all the elements of 5S principle in detail.

This is a house keeping technique used to establish and maintain a

productive and quality environment in an organization. This method is

invented in Japan which will give safer, more efficient and more
productive operation results in boosting the morale of workers, job
involvement and satisfaction and ownership of their responsibilities.
 Japanese English Equivalent Meaning
Term
SEIRI Sorting out Cleaning – Throw away all rubbish
unrelated materials in the work place
SEITON Systematic Arranging – Set everything in proper
arrangement(Straighten) Place for quick retrieval and storage
SEISO Spic and span(scrub Sweeping – Clean the work place, every
,shrine, sweep) thing with out fail
SEIKETSU Standardizing Maintaining Cleanliness – Standardizing
the way of maintaining cleanliness
SHISUKE Self-discipline(sustain) Self Discipline – Practice 5S„ daily.
Make it a way or life. This also means
commitment

OBJECTIVES OF 5S
i. Create a neat and clean work place
ii. Create systemize day to day working
iii. Improve work efficiency
iv. Standardize work practice
v. Improve work discipline
vi. Improve the quality of work and products
SEIRI: SORTING
It denotes to identify and sort out all items into necessary and
unnecessary items and discard all unnecessary items.
SEITON: SYSTEMATIZE
It means to arrange everything in proper order so that it can be
easily picked up for use. A place for everything and everything in its
place.
SEISO: SHINE
It means to clean the workplace thoroughly so that there is no
dust/dirt/scrap anywhere.

SEIKETSU: STANDARDISE
It means maintaining a high standard of workplace organization
and house keepinh at all times.
SHISUKESELF-DISCIPLINE
It denotes self-discipline ,especially with regard to safety rules
and punctuality
5S means everything in its place. People must also be in their
place, at the right time, in the right attire.
It is management duty to train people to practice 5S with
discipline ,to acquire the habit and to keep it.
BENEFITS IN IMPLEMENTING 5S
• Work place becomes proud place to work
• Results in good image and- generates business
• Operations become easier and safer in work place
• Disciplined people

6. What are seven habits of highly effective people? Discuss in detail.

Habit 1: Be Proactive
Being proactive means taking responsibility for your life-the ability
to choose the response to situation. You can't keep blaming everything on
your parents or grandparents.
Proactive people recognize that they are "response-able." They don't
blame genetics, circumstances, conditions, or conditioning for their
behavior. They know they choose their behavior.
Reactive people, on the other hand, are often affected by their physical
environment. They find external sources to blame for their behavior. If the
weather is good, they feel good. If it isn't, it affects their attitude and
performance, and they blame the weather. All of these external forces act
as stimuli that we respond to.
A proactive person uses proactive language--I can, I will, I prefer, etc.
A reactive person uses reactive language--I can't, I have to, if only.
Reactive people believe they are not responsible for what they say
and do-- they have no choice.
 Instead of reacting to or worrying about conditions over which they have little
or no control, proactive people focus their time and energy on things
they can control. The problems, challenges, and opportunities we
face fall into two areas-- Circle of Concern and Circle of Influence.
Proactive people focus their efforts on their Circle of Influence. They
work on the things they can do something about: health, children,
problems at work. Reactive people focus their efforts in the Circle of
Concern--things over which they have little or no control: the
national debt, terrorism, the weather. Gaining an awareness of the
areas in which we expend our energies in is a giant step in becoming
proactive.
Habit 2: Begin with the End In Mind
Habit 2 is based on imagination--the ability to envision in your mind
what you cannot at present see with your eyes.
It is based on the principle that all things are created twice. There is a
mental (first) creation, and a physical (second) creation.
The physical creation follows the mental, just as a building follows a
blueprint. If you don't make a conscious effort to visualize who you
are and what you want in life, then you empower other people and
circumstances to shape you and your life by default.
It's about connecting again with your own uniqueness and then
defining the personal, moral, and ethical guidelines within which
you can most happily express and fulfill yourself.
Begin with the End in Mind means to begin each day, task, or project
with a clear vision of your desired direction and destination, and then
continue by flexing your proactive muscles to make things happen.
Habit 3: Put First Things First
Habit 1 says, "You're in charge. You're the creator." Being proactive
is about choice. Habit 2 is the first, or mental, creation. Beginning with the
End in Mind is about vision. Habit 3 is the second creation, the physical
creation. This habit is where Habits 1 and 2 come together. It happens day
in and day out, moment-by- moment. It deals with many of the questions
addressed in the field of time management. But that's not all it's about.
Habit 3 is about life management as well-- your purpose, values, roles, and
priorities

Habit 4: Think Win-Win

Win –Win is a frame of mind and heart that constantly seeks mutual
benefit in all human interactions. Both sides come out ahead; in fact
the end result is usually a better way. If Win-win is not possible, and
then the alternative is no deal. It takes great courage as well as
consideration to create mutual benefits, especially if the other party
is thinking Win-Lose.
Win-Win embraces five independent dimensions of life-character,
relationships, agreements, systems and processes. Character
involves: integrity and maturity which is a balance between being
considerate of others and the courage to express feelings.
Habit 5: Seek First To Understand, Then To Be Understood
Empathic Listening is the key to effective communication. It focuses
on listening how the other person sees the world. Empathic Listening
is not that you agree with someone; it‟s that you fully, deeply
understand that person, emotionally as well as intellectually.
The second of the habit is to be understood. Covey uses three
sequentially arranged Greek word: Ethos, pathos and logos. Ethos is
your personal character, pathos is the empathy you have with the
other person‟s communication and logos is the logic or reasoning
part of your presentation.
Habit 6: Synergize
Synergy means whole is greater than the parts. To put it simply,
synergy means "two heads are better than one." Synergize is the habit of
creative cooperation. It is teamwork, open-mindedness, and the adventure
of finding new solutions to old problems. But it doesn't just happen on its
own. It's a process, and through that process, people bring all their personal
experience and expertise to the table. Together, they can produce far better
results that they could individually. Synergy lets us discover jointly things
we are much less likely to discover by ourselves.
Habit 7: Sharpen the Saw
Habit 7 is taking time to sharpen the saw so it will cut faster.
Sharpen the Saw means preserving and enhancing the greatest asset you
have-- you. It means having a balanced program for self-renewal in the
four areas of your life:
physical, social/emotional, mental, and spiritual. Here are some examples
of activities:
Physical: Beneficial eating, exercising, and resting
Social/Emotional: Making social and meaningful connections
with others Mental: Learning, reading, writing, and teaching
Spiritual: Spending time in nature, expanding
spiritual self through meditation, music, art, prayer, or service

7. Briefly explain employee motivation with its theories .

Employee motivation
Motivation means a process of stimulating people to accomplish
desired goals.
Motivation is the process of attempting to influence others to do
your will through the possibility of reward.
Importance of motivation
Motivation improves employee involvement
Motivation promotes job satisfaction and thus reduce
absenteeism and turnover
 Motivation helps in securing high level of performance and hhence
enchance efficiency and productivity.
Theories of motivation:
a) Maslow’s need hierarchy theory
One of the most widely mentioned theories of motivation is the
hierarchy of needs theory put forth by psychologist Abraham Maslow.
Maslow saw human needs in the form of a hierarchy, ascending from the
lowest to the highest, and he concluded that when one set of needs is
satisfied, this kind of need ceases to be a motivator.

As per his theory these needs are:

(i) Physiological needs:
These are important needs for sustaining the human life. Food,
water, warmth, shelter, sleep, medicine and education are the basic
physiological needs which fall in the primary list of need satisfaction.
Maslow was of an opinion that until these needs were satisfied to a degree
to maintain life, no other motivating factors can work.
(ii) Security or Safety needs:
These are the needs to be free of physical danger (fire,accident) and
of the fear of losing a job, property, food or shelter. It also includes
protection against any emotional harm.
(iii) Social needs:
Since people are social beings, they need to belong and be accepted
by others. People try to satisfy their need for affection, acceptance and
friendship.
(iv) Esteem needs:
According to Maslow, once people begin to satisfy their need to
belong, they tend to want to be held in esteem both by themselves
and by others. This kind of need produces such satisfaction as power,
prestige status and self- confidence. It includes both internal esteem
factors like self-respect, autonomy and achievements and external
esteem factors such as states, recognition and attention.
(v) Need for self-actualization:
 Maslow regards this as the highest need in his hierarchy. It is the
drive to become what one is capable of becoming; it includes growth,
achieving one‟s potential and self-fulfillment. It is to maximize one‟s
potential and to accomplish something.
b) Herzberg’s motivation-hygiene theory:
Herzberg‟s studies concentrated on satisfaction at work. 200 engineers
and accountants were asked to recall when they had experienced
satisfactory and unsatisfactory feelings about their jobs.
Common motivators or satisfiers
Achievement
Recognition
Advancement
Personal growth
The work it self

Challenging work
Common dissatisfies:
Salary
Working conditions
Company policy and
administration Job
security Status
Interpersonal relationship
According to Herzberg‟s, maintenance or hygiene factors are necessary to
maintain a reasonable level of satisfaction among employees. These factors
do not provide satisfaction among employees but their absence will
dissatisfy them. Therefore these factors are called dissatisfies.
Motivational factors create satisfaction to the workers at the presence but
their absence does not cause dissatisfaction.
 8. Portray the characteristics of empowered employees.
Empowerment is an environment in which people have the ability , the
confidence and the commitment to take the responsibility and
ownership to improve the process and initiate the necessary steps to
satisfy customer requirements within well defined boundaries in order
to achieve organizational values and goals.

The word empowerment is not to be confused with delegation or job

[Link] is distribution and entrusting work to
[Link] empowerment requires the individual to be held
responsible for accomplishing a whole [Link] the employee by
having been empowered becomes accountable for the [Link] following
conditions are necessary for employee empowerment.
[Link] must understand the need for the change.
[Link] system needs to change to create a new scenario.
[Link] organization must enable its employees.

People fear change that is why the resist [Link] is always

considered as something impost on them without their full [Link]
organization needs an effective communication with their [Link]
should be convinced that the change would benefit [Link] in the
system is a must to reinforce and motivate the individual and group
[Link] the employees means providing
information,education and [Link] want normally want to be more
incharge of their jobs and [Link] appreciate the value of trust and
responsibility in an environment supporting people and their actions.

9. What is supplier partnering? Indicate its important benefits.

Successful supplier partnerships require commitment and continual nurturing. The
following points as mandatory requirements of supplier partnerships;
Ø Supplier personnel should meet with buyer personnel beyond those in the purchasing
office. It is particularly important for them to meet with personnel who actually use
their products so that needed improvements can be identified and made.
Ø The price-only approach to buyer –supplier negotiations should be eliminated. Product
features, quality, and delivery concerns should also be part of the negotiations. The goal
of the negotiations should be to achieve the optimum deal when price, feature, quality,
and delivery issues are all factored in.
Ø The quality of supplier products should be guaranteed by the supplier’s quality processes.
The buyer should have no need to inspect the supplier’s products.
Ø Both partners should be capable of sharing information electronically so that the
relationship is not inhibited by paperwork. Electronic data exchange is particularly
important for successful Just in Time (JIT).
Ø The supplier should fully understand and be able to practice just-in time (JIT).
Buyers should not need to maintain inventories.
ROLE OF SUPPLIER PARTNERSHIP
1. Timeliness
The suppliers should ensured that they deliver the required inputs on time while in
return the customer (organization) should pay for the supplied inputs on time hence
saving time and creating a good relationship.

2. Information
The customer (organization) is responsible for providing the supplier with clear and
sufficient information of requirements so that the supplier can know precisely what to
produce. Both the customer and the supplier should continually exchange information,
sometimes using multifunctional teams, in order to improve the product and service
quality.
3. Product evaluation
Both the customer (organization) and the supplier should decide the method to evaluate
the quality of the products or services to the satisfaction of both parties. This will
enhance their relationship which may lead to better provision of services to
organization’s customers.
4. Monitor customer complaints
When dealing with business transactions, both the customer and the supplier should
always have the best interest of the end user in mind. Having a complaints handling
system in place will help you pick up on any adverse incidents and trends relating to
your products. For example, the Australian Standard AS/ISO 10002:2006 Customer
Satisfaction—Guidelines for complaints handling in organizations provides advice on
the complaints handling process, including planning, design, operation, maintenance
and improvement.
5. Awareness of product liability laws
Both customer and supplier should ensure that their products comply with the safety
 standards. If end user suffer serious injury or death from problems with your products,
you and your business could be liable under the product liability provisions of the
Consumer Law or at common law.
6. Ensure necessary tests are done
Many products need testing to ensure they are safe and free of faults and consistently
meet any mandatory standards that apply. If you are supplying products covered by
mandatory standards or bans, every item must comply. If you claim that all your goods
comply, you must be able to support this with evidence. Having an effective compliance
program helps you to gather this evidence.

7. Provide dependable products

In supplier partnership it’s the role of the supplier to ensure the quality and reliability of
the products they supply. The supplier must be reliable at all time. The quality of the
products should not be compromised hence quality improvement.
8. Anticipate changing needs and acting on them
The customer (Organization) should be aware of changing needs of the end user and
therefore adjust accordingly. On the other hand, the supplier should adjust according the
needs of the consumer.
9. Commitment
Long-term commitment to the partnership provides the needed environment for both
parties to work towards continuous satisfaction of end users needs. Each party
contributes its unique strengths to the process hence product quality improvement.
10. Compliance with mandatory standards
Any products subject to mandatory product safety regulations must comply before you
can sell them. Mandatory standards and bans are law. For instance, In Kenya the
products should bear the Diamond Standardization mark of Quality from Kenya Bureau
of Standards (KEBS).
11. Communication
Any arising needs in product by the management should be communicated to the
supplier on time. This will ensure that no delays are experienced on both parties which
could lead to inefficiencies and delays in production therefore compromising quality.
Suppliers that do not maintain a policy of open communication- or even worse, actively
practice deception- should be avoided at all costs.
12. Plan ahead for recalls
A company that has a set of recall roles and procedures in place will save time and
money, and will help protect their reputation, in the event that a recall is necessary. It is
in everybody’s interests to act quickly and surely to remove unsafe products as soon as
they have been found.