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Unit 3 Bailding Blacks of TQM

After reading this unit, you should be able to: o comptehend the cornerstones of TQM; understand the beli$s of TQM; tzplain why TQM has become so popular; observe the stumbling blocks of TQM; + appreciate the key successfactors - that we need to make TQM work; and + examine the two important building blocks1 - PDCA and Kaizen

+ + +

8 3.1 Introduction 3.2 Total Quality Management Cornerstones 3.3 Total Quality Management Beliefs 3.4 What Stumbling Blocks Should the TQM Manager Know About? 3.5 W h y Has TQM Become So.Popular? 3.6 Key.Success Factors What W e Need T o Make TQM Work. 3.7 The PDCA Cycle 3.8 Kaizen 3.9 Conclusion 3.10 Keywords 3.1 1 Self-Assessment Questions 3.12 Further Reading References

3 . 1


Changing an organisation from a functional type to a process improvement one is indeed a significant event. For years,organisations were designed around functions. In fact, as an organisation grdws,more and more functions are created. Organisation structure based on functions leads to a very comfortable work environment where challenges to improve tend to be ignored. Once the functions are outlined, rules are developed, and policies are implemented, there is little need for creative thinking. Attempt to untap the brains of front-line workers is one of the most difficult challenges facing today's organisations. The question is: how do we get people involved in making continual improvements in the processes that they manage on a daily basis? In the first two units of this part we familiarise you with basic concepts and approach of TQM. In this unit, we intend to gutline the foundations, the beliefs, and the key factors that are critical to the successful implementation of TQM. The stumblingblocks to TQM are also identified. Why has TQM become so popular is explored. Later, the two important building blocks of TQM i.e. PDCA and Kaizen principles, are explained.

3 . 8

Total Quality Management Cornerstones

The thoughtful (approach) on total quality management covers the following cornerstones': 1. A TQM system of management must begin and end with its customers. 2. Management decisions should be based on facts. Accurate and meaningful data can lead to appropriate decisions. 3. Thinking about improving processes should become a thing of daily life. 4. Partnerships with suppliers,customers,and other organisations should be encouraged and worked out. 5. Empowerment i.e., the authority to improve the processes, should be granted to the workers. Some organisations may not be willing to focus on meeting or exceeding customer expectations.Some others may not be willing to gather, analyse, and make decisions on accurate data. Some companies may not be recognised to accept process improvement (no matter how small) as something that is important or not willing to develop partnerships and linkages with their processes. They may be willing to empowsr frontline workers to improve the processes. Total QualityManagement will not work in such organisations. On the other hand, there are companies that actord high priority to meeting or exceeding customer expectations. They let data dominate decisions. They believe in making incremental changes, and in developing partnerships with those who in some way are linked with the organisation and its processes. e They further believe in people empowerment? Such companies are most likely to use TQM approach. W shall now examine the managempnt credos that are essential for TQM to take root in an organisation.

3 . 3

Total Quality Management Beliefa

A belief is a habit of mind that implies placing trust or confidence in something. Vital to Total Quality ~anagement is a set of beliefs that should be developed if an organisation decides to adopt and implement

Total QualityManagement. An organisation considering TQM should first examine the fundamental tenets underlying TQM. If management does not embrace these beliefs, then it is difficult to implement a successful TQM initiative. Many organisations that attempt to implement TQM fail because management fails to adopt a new set

of beliefs. It is practically impossible to make TQM work when management hangs on to old top-down, meet-the-quota-or-else mentality, and believes that the best way to make production quotas is to tell everyone what to do and if they dori't do it, find someone who will do what they are told. The TQM initiative is built upon the following beliefs: Belief r O o .1 : People Are Untkpped Beacnmas People who work in an organisation ap the organisation's most valuable resource. Traditional organisations have often stated that people are its grbtest resource,but believe that "If people would just do what they are told to"; the organisation would be effdctive. In the 1950s through the 1970s,many organisations in the West relied on technology for advancement. The goal was to have technology replace the worker. Technology can replace workers who are hired just to 40 one task. For example, there used to be manyebrain dead" jobs i n industry. For eight hours a day, a persoq would move just one part, e.g., a piece of sheet metal or a door handle or a fender, from one place to the other. No thinking was required. Obviously, it would not be long before technology would replace this person because of the simplistic nature of the job. Today, because of the advancement Q f technology and the advancement of modern management systems, workers are seldom hired just to do one specific task. Rather, people are asked to work in teams to use their brains to make improvements in the process. Rather than treating workers like robots, management must find ways to untap their braiqs so that individual abilities and skills can be maximized. TQM is a management system that allows people\to use their brains to improve organisational processes. If managers believe that the utilization of brains belongs only to top management, then they should not adopt TQM. If however, they believe thatlall employees, no matter at what level of the organisation, can make a significant contribution, then TQM is an excellent management system. It is our experience that most workers, even with a lack of financial incentive, appreciate the opportunity to use their brains.
Belief IQo.8: Peopk Who Do the Work Are i n the

Best Poeitdafi to 1 m I ) m organhtioPP1 Processes For years,management thinking was that tHe empioyees were just meant to work. It was management's job to figure out how to improve the system. Coqsequently, managers would spend their time planning, organizing, directing, and controlling their employees. Managers spent most of their time trying to control people. They believed that if they controlled peogle, then they were successful managers. On the other hand, in Total Quality Management, the manager's coocern is supposed to be with the process, and not controlling people. In fact, there is less need for managers' traditional role in a TQM organisation because workers let the data derived from the process control theit actions.Who knows the job better than the individual doing it? Who else sees problems or potential problems better? The workers, and not their supervisors, or top executive far away, are in the best position to iinprove work. If a team, formed with members who are clos* o t and work on the process, are allowed tq meet an hour a week to make improvements, the process would run far more effectively. For a team to be effective, however, they must have accurate data based on the quality indicators that are measured. If managers can tap the brains of the people closest to the wdrk, then the processes will be successful.

Belief Ie. 8: Continual Improaement Traditional management in western culture is largely focussed on innovation, or in today's language, "reengineeringm or "reinvention". ~dvocates of innovation management speak of dramatic large step innovations. In TQM we respect this way of thinking; we believe that the most effective way for an organisation to improve is to make continual improvements. We advocate incremental changes, small steps over time which are rewarding for the organisation.We believe that if an organisation would incorporate its customers as the driving force and focus on continual improvement of its processes to meet or exceed customers' expectations, a quality organisation would evolve. The top management provides the vision, the mission, and the guiding principles. The workers, through continual improvement of their processes, meet or exceed customer expectations. Belief No. 4: Values Drive Behavim Values are what ought to exist in the workplace. Values are concepts that have relative worth and importance to each individual. For society to live cohesivelyltogether, people must share values. When people have conflicts, they often result from a difference in values. We believe that an effective organisation shares similar values. We believe that these values should be published, role-modeled, and used to select people who are entering the organisation. For example, a government organisation values in general diversification of its workforce. If an individual does not value diversification, he should understand that working in a government organisation may not be suitable from the view point of his background and preferences. Values serve to notify all employees of proper behaviour. Therefore, managers themselves have to role model the desired values and not spend their time controlling other people's behaviour by coming up with their own set of values. Traditional management allows the manager to set values as to what is impo~tant so that he may use these to control others. For an organisation to be effective, a set of values must serve as guiding principles. Though the primary set of values adopted by an organisation directs behaviour in the organisation, employee may add their own to this. Some managers reject the concept of organisational values because they like to control people using their personal value system. Organisations should not tolerate such managers who violate the values of the organisation. For "total" quality management, some core values are necessary. Managers should not be allowed to impose their own personal values as those of the organisation. People working in the organisation including everyone from the top executive to the front-line worker are expected to share and respect a common set of values.

On\y fi

Belief No. 5: PreventionAs Oppo6eU To Detection In TQM, it is believed that the best investment is the one thatprevents problems rather than detects mistakes. Too many organisationshave quality control divisions whose job is to inspect end-quality. The quality department may send defects back to the'manufacturing department, (which usually complains that if it had been designed right, it could be built right) or the quality department itself repairs the defects. Errors are frequent in organisations. Sometimes customers detect these errors, and sometimes these errors are found out interna1ly.Accordingto Deming and Juran, 85 percent of errors are system errors and percent can be attributed to worker error. The focus of Total Quality Management is on preven81

tiou, and we believe that if an organisation improves its management systems, it can prevent mistakes in the system.

Belief No. 8: Organisation-WideInvolvement and Comdtment

From top to bottom, everyone in the organisation must be involved in Total Quality Management-Not only the top management but everybody should believe in the TQM initiative. It should be everyone's responsibility to work for making contin~~al improvements in the processes of an organisation. In a TQM organisation, you don't leave your brains on the door while you enter the workplace, rather it is brought to work along with you and is required to be used. TQM is not a management method that can be selected for use by specific managers. It is an organisation-wide commitment that is required. For years, managers required loyalty as their primary value. They wanted people who were only loyal to them. Since so many things in organisations were done secretly, loy'alty was required. Managers did not share data, but rather kept it to themselves, interpreted it, and took action. The subordinates were supposed to make the manager look good and, in turn, the manager would give them raises. Managers built their own teams and expected loyalty. The managers in turn worked on similar lines. In a TQM organisation, loyalty is to the organisation and not to a specific manager. Organisation-wide values drive behaviour, and the system is an open system vhere data flows openly and each worker has access to the data. I,eaders must nwalk the talkn and demand that quality be the most important component of all work. Managers and supervisors have to embrace the above six principles of TQM and only then can they persuade employees to accept the TQM techniques or motivate them to actually use them.


Box 3.1: Juran on TQM

Is it likely that the history of not having been forced to compete may have created a mindset in Indian companies that is opposed to embracing quality practices? How significant a hurdle could such a mindset present? Miadset is.a very difficult thing to change. I think the official name is cultural resistance. And that's a very powerful force. It relates to the way people are brought up as children. In a place like India, you have a culture that, in many respects, has sharp differences with the West; to the point where many are absolutely mystified by some of them. They think they are superstitions. But they don't realise that some of the things that they do look like superstitions to people from India. And, in some respects, the superstitions of the West are greater than the superstitions of the East. That applies fully to trying to introduce change in a company where you have numerous cultures. Product development engineers have a culture different from that of the finance people and the like. Each of them has been subjected to brain-washing, if you want to call it that. Each of them develops what anthropologists call a pattern of culture: a selection of beliefs and habits and practices, things they must do - the rituals - and the things they must not do - the taboos. Those elements of a culture are developed fop logical reasons to'create law and order, to explain



mysterious things, to defend society from adverse ideas. And because those elements have value, they are perpetuated. So, the new children born in the village, or the new recruits in this department, are taught that this is the way we do things. And if they don't accommociate them, thing get very unpleasant for them. So, when new ideas are offered to that culture, even those benefits and ideas are going to be examined to see how much damage they do the culture, what price has to be paid in cultural values to accept these benefits. This is not understood well by managers. You see, the school curriculum that managets attend - whether they are engineers to business school graduates or financial graduates - does not expose them to this concept of culture, which they will discover after they get out and try to introduce change in actual people.
What can India do about the perception that the quality of its products are shoddy? The Japanese had exactly that reputation over here prior to World War 11. Japanese products were regarded as shoddy and, of course, our people would not buy them. Actually, their weaponry was competitive with the West's, but their civilian goods, which they exported to the West, were not competitive. So, after the War, when Japanese companies tried to convert to civilian products and tried to sell them, they discovered that they were handicapped because of their national reputation for shoddy goods. When companies cannot sell products, that message goes directly msenior managers. So, they took charge for the purpose of making it possible to sell their products globally.
So, is it possible to change perceptions about quality?

Absolutely. But many Indian companies have already achieved top quality. Yes, several Indian companies have got ISO-9000 certification.. .. Wait a minute. That is an entirely different issue. Certification for ISQ-9000does not mean that a company has become a world-class company.. ..It has merit, but what it tries to do is to define a system for control, not for improvement. Those are two very different things, and you need both. Control is avoiding adverse change and improvement is creating beneficial change.. ..
Are you suggesting that ISO-9000can hamper quality? Is it actually doing that?

It is, it is.. ... That's exactly the danger and not just in India. In Europe, there has been clever selling done by the standards organisations. As I mentioned, ISO-9000 has some benefits to ii. And the system is a sensible system and some very competent people were on the committee that produced that system. But it is limited to control. It has reached the point where as a marketing matter,you have to get certified. You see, there is no legal requirement that you must be certified. It is purely a marketing requirement. So, the Europeans are all going to get certified. But that, by itself, wiil not bring them quality leadership. And I think that by thd end of decade, they are all going to have a big letdown.

at do you tell CEOs about 190-9000? I tell them,okay,go ahead,andget that certification. And now that you have solved that marketing
Adapted from $usiness Today, January 7-211, 1995, pp. 79-81

Activity 1 You arv a supervisor or manager in an industry or service organisation. Examine the beliefs that are missing ambng your colleagues and how it is aqfecting their efficiency. Sl~ggeststeps that should be taken to inculcate them and enumerste the benefits.


What Stumbling Bloeks Should a TQM Manager Know About?

LikeTnost other management approaches, TQM works better in some places than others; it looks right to some people and wrong to others. It has failed C n many organisations. To be realistic, therefore,one should be aware of when and where things can go wrong. The following are the major obstacles to be avoided: Overselling TQM 0 Setting mediocre expectatiow Poorly or inadequately diagnoshs the situation 0 Failing to train personnel I o Making continuous improvement too compldx and unnatural o Failing to recognise and celebrate successes Some other stumbling blocks are also worth keeping in mind: failure to make organized labour a partner in the pursuit of TQM, lack of clarity about why the organisation is going in a particular direction, mixed signals from the top management, failure of some teams to "jell", and many others, some of wh~ch may be out of one's control. We will now briefly examine the more common problems.

OversellingTQM It is easy to get excited about TQM; there are greak stories to tell about how this approach to management has transformed some organisations. When you hear these success stories in a congenial group, it is natural to catch some of the enthusiasm. There is somkthing very appealing about a fresh approach in a work setting that has become dull and routine. When we are enthusiastic and our colleagues or subordinates are skeptical, there is a strong temptation to overseu - to minimize the effort required, to exaggeGte the ben-

efits, and underestimate the time required to get the system working. Even if we succeed in allaying their doubts, we pay a high price in terms of credibility when our predictions fall short.

Setting M&ocre Brpeotations This is the other side of the coin: introducing change so gradually that it almost seems like business as usual. If you ask me to increase my productivity by 10 per cent, I can probably do that by working harder. However, if you double my goals, I have to reexamine my procedure and create a new one. One essential objective of TQM is to encourage people to take a fresh look at the systems they are using and to develop better ones. Poorly or inadequately aiagnoeing The Present Situation TQM would not work everywhere and the landscape is littered with what some people euphemisticallycall "false starts". Since TQM is a major cultural change, the decision to go with it should be carefully considered. The most critical element, of course, is the solid commitment of top management. TQM requires vision and the confidence that an initial investment in planning and training will pay off in the long run, if not immediately. In addition to having support from the top, you will want to ask some questions from your own team: How do they react to change? How much confidence do they have in your organisation's leadership?Which aspecis of TQM will make the most sense to them and which will be the most puzzling and threatening? What particular competencies will they have to learn?
Bailing To Train In some organisations TQM has been launched so rapidly that the training programme has been started only after people have experienced failure. If workers are expected to behave differently, they have to be trained.-They have to feel comfortable with new procedures and understand their significance.We all like to feel competent and confident, on top of oar jobs. It is na'ive to assume that even bright workers know how to solve problems systematically, or function effectively in groups.
Making Conthuoue Improvement Too Complex And Unnatural Although continuous improvement (Kaizen) is a new phrase in the management lexicon, in some sense

it just represents a philosophy that good organisations have always followed. The elements of a continuous improvement culture already exist. TQM managers simply highlight and sharpen this process so that it has more power to shape behaviour. They set measurable goals and plot their progress for meeting these goals.

Behaving Inwnsbtently
Most of the TQM wotds and concepts make sense: empowerment, quality, and teamwork. However, people in organisations have heard golden words before and too often they have been disillusioned. Zxecutives sometimes use these words in speeches and newsletters to inspire the employees and glamorize what may be a drab and routine experience. In most organisations, however, those who are not executives take the words with a grain of salt and watch for actions. The slogan "walk your talk" has been popularized in the recent past. Words and deeds must match. Failing to check on whether a target has been reached, ignoring

a worker's sug~estion, or handling a customer's complaiht in a cavalier manner - any of these will undermine confidence in the whole process.

and Celebrate Successes Failing To Beco Few things are more discouraging than to have one four special efforts ignored or taken for granted. If we are responsible employees we do the best job we can. We do not usua!ly expect or demand anything more than a pay check, buf when we da get more recognition, it energizes us, It makes us feel differently abw ourselves and the organisatiqn we serve. On the other hand, if we or our team succeed in solving a problem or setting a new record ofproduaivity and the effort goes unnoticed, we think twice about putting ourselves out again. The disappointment is deepened, of course, if someone else gets the credit for what we have done. Successful TQM managers make a special point of letting their colleagues know how much they appreciate the goals that are met and the breakthraughs that are received. One of the best-tested principles of psychology states: "Behaviour that is reinforced tends to be repeatedl'when people do the right thing, let them know it - and let them also know how valued they are! The biggest reason why the imprbvement techniques developed so far have not readily taken root in the workplace is encapsulated by the comment of one manager, who lamented,"~eunderstand them, but for some reason or other,we can't do them."This mmment arisek from the mistaken notion that if you understand something, you ought to be able to do it. Understanding a technique intellectually, however, is very different from actually being able to apply it. We can understand something by reading about it or listening to a lecture on it, but we must approach it in a totally different way if we actually want to practice it. When we watch a cricket match on TV, we might be able to understand how Tendulkar can score a sixer, but this would not mean that we could immediately go out and do it ourselves. Before we could do it, we would have to put in an awful lot oftpractice. It is the same with manufacturing or service improvement techniques-to cqiablish them in the workplace, you have to get people to practice them as well as understand them.

Activity 8
What ire the obstades to implement~ngTQM in your organisation? How do you propose to tackle them?


W h y has TQM Become so Popular?

New managemeputa;,proac?~esare often greeted with a combination of hope and scepticism. As management becotnes more complex, we are all looking for some system t?lat will suddenly illuminate our confusing world a n d show us t?le way to get things under control. In the early years of the Industrial Revolution~'~scic~~tific management" offered a precise systematic way to increase efficiency and productiv.

ity. Then "human relations" and "democratic leadership"seemed to be the approach to enlist the cooperation of workers. Management by objectives promised to ensure a better understanding between a boss and his subordinates and to elicit greater worker commitment to do the job right. Now it is TQM that is in the spotlight. e executive who does not know about TQM is just not with it. it in front of us. It has highly enthusiastic proponents and Seminars, books, journals, and many vocal critics and cynics. It is regarded by some as the only route to organisational survival and by others as just the latest fad in management. When experienced managers tell us that they are enthusiastic about TQM, they generally cite one or more of these reasons: a It has a proven track in some very successful organisations. a It combines and integrates many management approaches with which we are familiar. a It is consistent with values we admire. Let us examine each of these briefly.
TQM Bas A Rwen Track Record Many Indian companies have adopted TQM as their mode of operat~on - Larsen &Toubro Lt&, Bhilai Steel Plant, WIPRO, ITC, Vikram Cement, TISCO to name just a few. Some of these comyaniesbgan to take TQM seriously when they saw that they would lose significant market share in the European countries unless they go for IS0 9000. The creation of the Rajiv Gandhi National Quality Award in 1992 gave further impetus to the quality movement. In the U.S.A., this had happened in a big way. In May 1991, the U.S. General Accounting OfSce undertook a study of companies using TQM.Their report' conduded,"Companies that adopted quality manage-

cg>L. New /anTJ<-> Leadership

Scientific Management

Fi#um 9.1. Management Theories And Practicer CmMlmti~l To TQW

ment practices experienced an overall improvement in corporate performance. In nearly all cases, companies that used total quality managemebt practices achieved better employee relations, higher productivity, greater customer satisfaction, increase! market share, and improved pr~fitability.~
TQM Combines an?dIntegrates IWmy Manag8meot Approaches The search for the best way to manage ~rganisations has been going on for a long time. Much of the innovation and research has been done in the United States,which has been the major producer of management literature. In India, many management publications have also come out over the last three decades. Because the conceptual innovations occurred at different times, managers tend to adopt and discard them one at a time. TQM brings many of these concfpts and practices together for the first time. Figure 3.1 gives an overview of the mundgement theories abd practices that have contributed to TQM. Here is a quick reminder of what welhave learnt from each of these theories and practices: Scientific management taught us how to seek the best way to do a job by measuring time, motions, and results. Group dynamics taught us how to unleash the mental and emotional power of a group to solve problems. Training and development gave US insights into how people learned and showed us how to design effective learning experiences for adhlts. Achievement motivation theory rhade us aware of how much satisfaction we get from accomplishing something. Employee involvement strategies helped us to learn that workers become more responsible when they can influence the way their organisation works and the way they do their jobs. Linking-pin organisations, a conqpt used by Rensis Likert (1967) that perceives organisations to be a series of overlapping teams in which each manager is a leader of one group and a member of another. Sociotechnical systems made us thibk of organisation as a system in which parts are interdependent Organisational development theor* and practice taught us how to think about change and how to help a whole organisation in identifyjng and diagnosing its problems for learning to improve. Corporate culture literature made u~ aware of the power of beliefs and myths in influencing people to decide on their priorities for doing work. New leadership theory taught us the difference between leading and managing -.and the importance of vision, trust, and empowerment in mobilizing human effort. Strategic planning gave us the tec9ology to map an organisation's environment and to plan its development in a systematic way. An extensive body of organisational and +anagement theory, research, and practice has emerged during the twentieth century. It has provided both the theoretical base and the technology that has made TQM possible. Another interesting perspective on the evolution of quality is depicted in Figure 3.2. This chart reminds us that organisational interest has moved from productivity to quality to Total Quality over a period of about ten years. Following the devastatioc O f World War 1 1 , the world desperately needed to rebuild. It was

~ u d i t of y Works Life



Total Quality

Self-Directed Claims

Quality Cirdes








Figure 9.8: The Quality hroluUon4

natural to place emphasis on production because there seemed to be an endless market. As we have seen in Unit 2, the emphasis shifted to quality with the growing competition of the 1970s. As competition has increased, the requirement for quality has intensified - hence Total Quality as the hallmark of the ~inetTes and beyond. The approach on how workers should be treated has changed in the Western world. The industrial Revolution,with its emphasis on mass production,viewed workers as cogs in the industrial machine. They did what machines could not do. As "hired hands", they were expected to perform like sophisticated machines for good wages. However, the 1970s gave more attention to the feelings, attitudes and commitment of workers. People began talking about the quality of work life - and it was clear that workers were interested in more than a pay check. Quality circles recognized that workers had ideas, that they could identify and solve problems the management sometimes did not even see. Once this was recognized, the natural next step was to involve the employees more fully in the planning process itself. This continued and the growing recognition of employee competence increased until enlightened organisations gave employees as much power a s possible to achieve agreed-upon objectives. As the responsibility and competence of employees has grown, the need for many levels of managers and supervisors has decreased.
TQM I s Consisteat With Values We Admfre

Perhaps one of the most attractive aspects of TQM is that it is based on a very humanistic set of values. It begins with the mandate that our responsibility is to serve the customer as fully as possible. To do that, we must listen to, and understand, the customer's needs.TQM then encourages us to work collaboratively with others - to be good team members. It asks us to set goals and systematically assess our progress toward them, and then to keep on improving! It also transforms problems into learning opportunities. Who can quarrel with any of these? It almost seems as if TQM demands that we behave on the job in an idealistic fashion. We may not always be able to live up to these expectations, but it is hard to argue with them. We believe that these underlying values and beliefs are part of the power that makes TQM so attractive to many executives, managers, and workers.You can argue about its realism and practicality, but you cannot argue with its guiding values!

In this section, we have examined why TQM has become so popular these days in India.The reception of Indian goods and services in world markets is critical to the wellbeing of the Indian industrial enterprise. Process improvement and innovation enhance a positive reception, which are achieved through the improvement of quality. Some Indian industries have already realized considerable success through practising TQM. Many management principles have culminated together in this. In addition, the values we admire are found in TQM practices.

Activity 3
Enumerate the reasons why you are interested in the study of TQM:'

3 . 6

Key Success Factors-,What we need

to make TQ1V)tWork?

W e have outlined the foundations and beliefs that are critical to the successful implementation of Total Quality Management. W e have also examined some of the obstacles in TQM and the reasons for its yopularity. However, TQM does not come with a guarantee. The Rajiv Gandhi National Quality Award for industries and service organisations identifies some of the outstanding successes of TQM. In some organisations where TQM efforts have fallen short of the expectations, it has been abandoned. What factors seem to make the difference? We have dealt with some of them previously in our discussion of stumr are listed below and then discussed briefly: bling blocks. The key success factors f ~TQM Clear Aims and Objectives of TQM Support and Commitment of Top Management Suficient Time to be Devoted to TQM Resources for TQM ,.sonal Qualities. Careful Analysis and Planning A Steering Group to Manage Change Adoption of an Ethical Apptoach

Clear dinu and Qbjeativerof TQM You should know your goal. Why do you need to change? Do you want to empower staff, reduce defects or improve customer loyalty? If you know what you are seeking, you can organize the TQM programme to achieve your aim. Without a goal, your programme will lack direction.

Support and Commitment of Top Management This ia an essential condition for TQM success. TQM is a major strategic process that must come from the top of the organisation. Before people in the middle or at the bottom can be convinced of change, they have to be certain that this is a serious transformation. It is not the kind of programme that the CEO can launch with a single speech and then delegate to a junior, while concentrating on the test of the organisation's bu,' *mess. Senior managers who have risen in the organisation because of their particular style of management are not likely to abandon that style unless the top person makes it absolutely clear that TQM is to be the defining guideline. Where this support from the top is lacking or perceived to be only token, the effort is likely to fail.
mffiolmnt Time to be devoted to TQM

Implementing TQM would take up a lot of managers' time. The time factor has to be considered carefully. When a TQM programme fails, it is often because the management fails to give it enough time. If managers are told to carry out a TQM project in their spare time, it is unlikely to be successful. Not only will senior managers need to spend many hours a week on the programme, but also they will have to wait several years to see any results. There is a danger of losing interest in TQM, if immediate results are not coming. Senior managers should not get disappointed if things are not fast improving.

for If you develop your programme in-house, you will have to pay the sztlary of a full-time TQM coordinator. You may haie to pay for training courses. In addition, there is the time of senior managers and other staff. Employees will be spendkg time in meeting or visiting other companies. You may also print certificates, pens or mugs as give-aways. If you decide to use a consultmcy, you will have-to pay its fees. So before you rush into a TQM programme, you should set aside a budget.

Psrc~orrrrl Qualities

When you have committed the company to TQM,and accepted that it will take energy, timt -rid money,you still need personal qualities to succeed. These are shown in Figure 3.3.

what might be


to become a TOM

To stick to a difficult task


aarefulAnaly8i#mbPlurnfne A careful job of assessing the organisation's r4adiness to accept and embrace TQM is necessary. The top management s M ask itself several quedtiqns before launching the TQM venture. They should begin with very basic questions: What are our values3 What is our mission?Who are our customerk?Who are the stakeholders in our orghnisation, i.e., the people who are affected by what we do and who have an impact upon us? What are our strengths and weaknessts?Who are our competitors?What kind of organisation do we want to become? Careful, thoughtful preparation will significantly increase the chances of building a rota1 Quality Organisation. Btesring QmptoManage-0 Successful TQM change efforts involve a team o( top executives in planning and guidance.The existence of such a steering group will reassure people thrdughout the organisation that this is noi just another yrogramme,but a serious permanent change of direction. It will also be the best vehicle for assessing the pace ~fthe change effort and deciding what resourcds can be devoted to it. With this kind of steady guidance, the chances Mr successful organisational changd are significantly increased. 6ard Member

Quality Counci'

for Quality
Quality F q

Top Management

Line Managemefit

Figure 3.4: l@mahue ?or TQUP

Project Teams

You will need a structure like the one shown in(Figure3.4.This has a number of elements,with the quality facilitator being one of the most important. The person will have day-to-day responsibility of TQM. He will not 'manage' it, because each individual must make his own contribution. Above all, the departmental managers must create an atmosphere of total quality in their own areas. So the facilitator (sometimesknown as the coordinator)will simply remind, advise and encourage staff about TQM. He will also guide the project teams. The facilitator needs to have sufficient seniority to persuade others to adopt TQM. A formal job description should be written,outlining his authority. In a small organisation the facilitator will report tovhe chief executive. In larger organisations, he might report to an~ther member of the board. Whoever has responsibility must be committed to the success of the project, and must be at the company's top level of management. Otherwise, the TQM programme will not receive the resources and authority it needs.
Adopt on Ethical Approaah TQM is based on fairness. It requires the firm to satisfy its customers, and to be honest and open with its

employees. That means the firm has to be ethical. Every firm, like every human, has moral failings. Before a TQM programme starts, the company should carry out an ethics audit, and draw up an ethics policy. The ethics audit should cover relationships with the government, customers, suppliers, staff, and the environment. It may relate to tax evasion, bribes, and forming cartels. Policies on offensive advertising and environmental management might need to be formulated. In this section, the eight determinants of success of TQM in an organisation are considered. Top management should have clear objectives. They should give full support with time and resources and have personal qualities, A steering group has to be formed to plan the activities. Above all, TQM is not a tool, but a philosophy of worklife, requiring an ethical approach.

rnfvity 4
You are appointed as the Coordinator of the Steering Committee in your organisation to introduce TQM. What are the factors you should look for succeeding in this new position?

3 . 7

The PDCA Cycle

The basic Plan-Do-Check-Act (PDCA) cycle was developed by Shewhart and then modified by Deming. This is a continuous improvement chart that is widely used in Japan to describe the cycle of control (Figure 3.5). Proper control starts with 'planning', 'does' what is .planned, 'checks' (studies) the results, and then applies any necessary corrective action. The cycle represents these four stages - Plan-Do-Check (Dr.Deming later replaced "Check" with "Studyn)-Act - arranged in circular fashion to show a continuing cycle. Thus a never-ending circular management process is envisioned. The elements of the control cycle are: P: establishing a plan or standard for achieving your goal. D: enacting the plan or doing. C: measuring and analysing the results, i.e., checking. A: implementing the necessary reforms when the results are not as originally planned. rhese four steps - plan, do, check, act (PDCA) - make up the control process. None of these individual steps alone is control, and-control is rather the linking of these steps into a continuous procedure. Each step of the PDCA cycle must be gone through carefully for effective control: 1. First of all, a' reasonable plan for achieving your goal must be set up. This should be done d t h the understanding that your very first plan is unlikely to prove the most effective and will probably have to be revised later. 2. The next step is to carry out the plan. 3. This is followed by a review of what has been done. The important thing here is to clarify what results

Figure 3.5: The Bhewhart/DemfnCt PDCA Cycle

will be measured, how they will be measured, and what standards they will be compared with. These decisions to set up what are called control items are essential for effective control. 4. Finally, changes and improvements ate made based on the results achieved in the preceding step. Improvements should only be made within the limits of the authority (which implies that your job parameters be clearly defined). Any major changes or improvements that can only be made outside your own job. A major change in manufacturing procedure, should be reported to someone who is in a better position to see that this change is implemented. Likewise, failure to implement required changes that are within your authority is a failure to fulfil your own job responsibility. Effective control requires that responsibilities and authority be clearly defined, and that there be enough flexibility to change plans and standards as necessary. Repetition of the PDCA circle leads to more effective planning and more efficient control. Juran further divides the PDCA control steps into seven sub-steps as follows: 1. Choosing the control subject, i.e., selecting what is to be regulated. 2. Choosing a unit of measure. 3. Setting a standard value, i.e., specifying the quality characteristic. 4. Creating a sensing device, which can measure the characteristic in terms of the unit of measure. 5. Conducting actual measurement. 6. Interpreting the difference between actlsal and standard. 7. Decision making and acting on the difference. Juran stresses the need at the planning stage to set standard values and clarify the methodology that will be used to detect and compare these values. It is also important how the CA, control and action, processes are to be carried out. It is always important to clarify which of the 5-Ws and 1-H (who, what, where, when, why, and how) will be the control standards in any specific case. Please see Table No. 3.1. These are called control items and the chart listing them is called a control chart. Control items within each job type are called job-specific control items. In addition to defining the control items peculiar to your job, you should decide which control items yon will use to check on whether your subordinates have understood your directives correctly and are carryihg them out effectively. This is something that should be dis-

cussed in detail with both superiors and subordinates for thorough and effective control. Too often, employees do not know what is expected of them or what they should be reporting on because top management has failed to specify its control items. It is also common for top management to issue directives without having thought them through thoroughly, which can cause confusion and makes it impossible to act in a real emergency. Control standards should be made explicit. The planning in the PDCA cycle is not something abstract that you do in your head. The first step is to identify problems, look for their causes, and devise means of rectifying them. This is planning. In this context, the PDCA circle should more properly be called the CAPD circle, since the first step is that of looking for problems and identifying their causes, in other words, checking. Of course, planning is much more than simply eliminating current problems. It also involves foreseeing likely future problems that mav be created bv a chaneine environment and devising wavs of staving them off before thev occur. The action in the PDCA circle is action to correct causes, not effects. For example, in one plant it was found that a certain synthetic material was abnormally hard. After the problem was traced back to an incorrect combination of raw materials, the correct proportions were restored and the problem solved. This is what is meant by action. In another example, a certain process has maximum and minimum temperatures. Adjustment, in other words control, is required to ensure that the process temperature stays within these limits. It is simple to correct deviations automaticallywith a rheostat or a pressure valve without ever investigating what caused the temperature abnormality in the first place. The ease of this kind of automatic control does not,howevg8

er, mean that control management i$ unnecessary.Even though adjustments are made to keep the temperature within the acceptable limits, the cause of the problem may also cause other problems and it needs to be investigated and corrected. This is the C A of the PDCA circle. From another angle, the PDCA cycl$ can be seen like this: At the requirement stage, the cuqtomer is given priority. The customer asked for his nee&/wants, so that they can be incorporated at this initial stage. A specification is detailed, then designed and finally implemented. There is scope to return constantly to the documented requirements, indeed to the customers themselves, to ensure that the requirements have been met. This focuse, the design by doiag it right-first-tim~so that re-design at a later stage does not become necessary because the organisatlion has become divorced from the actual needs of the customer. The revised lifecycle is shown i4 Figure 3.6.


,// C\Y



verification validation of

1 = specification 2 = design 3 = implementation

INBun,3 . 6 : The Revbed PDCd Cyah'

The PDCA cycle is an invaluable tool for management because it allows attention to be focused on the job in hand and also simultaneouslyon forward planning. The robustness of PDCA cycle means that once each stage has been accomplished, ta$ks are assignable to individuals. This also helps to encourage ownership and responsibility, so that task fdilure is less likely. PDCA is ubiquitous within tt.ie TQM framework. It can be used For data gathering through use of the seven statistical tools (these are already discussed in the earlier unit No. 2). For formulating the best way to implement improvements. To meawe the extent to whibh improvement has occurred. Then to iniroduce a new staddard which provides a reference point for the next phase of improvement.

Building Blocks of TQM

Activity 8
Select one common problem and apply the PDCA cycle to solve it.

3 . 8


Kaizen (meaning literally 'continuous improvement') is a Japanese word for the philosophy that. defines management's role in continuously encouraging and implementing small improvements involving everyone. It is the process of continuous improvements in small increments that make the process more efficient,effective, controllable, and adequate. Improvements are usually accomplished at little or no expense without sophisticated techniques or expensive equipment. It focuses on simplification by breaking down complex processes into their sub-processes and then improving them. The three main objectives of Kaizen are: A4an,1gcri;ll practices, which must broaden its perspectives, whilst increasing its involvement. Shifting values which are socially and culturally adrift as far as quality is concerned. Organisational effectiveness - the agenda of leadership, motivation and goalsetting. Quality means a major rehaul of attitudes. The learning experience associated with attitudinal changes is painful, because it means upturning established patterns of behaviour. Working towards introducing qualProcess driven Quality awareness, quality control

KAIZEN lcontinuous

Total employee involvement (quality circles, suggestion systems, teamwork)




Good labourmanagement relations


leadership, crosscommunication Customer orientation

Reducing waste

adaptability to changing environment

Visibility and control

ity has to be a rational decision adopted by each employee. This can therefore be seen as a collective consclcusness-raising exercise advocating the benefits, whilst highlighting the losses that lack of quality can bring. When the going gets tough, juq think of the ultimate rewards! Figure 3.7 shows the various aspects bf the Kaizen principle. The Kaizen improvement focusses on the use of: 1. Value-added and non-value-added work activities. 2 Muda, which refers to the seven classes of waste - over production, delay, tr'an~~ortation, processing, inventory, wasted motion, and defective parts. 3. Principles of motion study. 4. Principles of material handling. 5. Documentation of standard operating procedures. 6. The five S's for workplace organis~tion, which are five Japanese words that mean proper arrangement (Seiko), orderliness (Seiton), Persanal cleanliness (Seiketso),Clean up (Seiso), and discipline (Shitsuke). 7. Visual management by means of visual displays that everyone in the plant can use for better communication. 8. Just-in-time principles to produce only the units in the right quantities,at the right time, and with the right resources. 9. Poka-yoke to prevent or detect errors. 10. Team dynamics that indude problem solving, communication skills, and conflict resolution. Kaizen relies heaviiy on a culture that encourages suggestions by operators who continually try to incrementally improve their jobs or processcs.An example of a Kaizen-type improvement would be the change in colour of a welding booth from black to white to improve visibility. This change results in a small improvement in weld quality and a sGbstantial improvement in operator satisfaction. The PDCA cycle described earlier may be used to implefnent Kaizen concepts.

Continuous Improvement rather ihanfnnovation Innovation is equivalent to the great-leap forward. It is abrupt, challenging, and dramatic. It is rarely long lasting. The ephemeral nature of innovation is comparable to bullding a sandcastle - glorious for the moment, greatly applauded, but unable to stand the ravages of time and tide. Kaizen,in comparison,thrives on an atmosphere of stability,because of the strong inherent foundations that already exist and which can be relid upon as a basis for improvement. Innovation is a creative experience because it can inject freshness into stagnant.areas, but by itself, it becomes a bunch of straw. Vast injections of cash and technology are no substitute to altering behaviour and ideals in the minds of the employee. Only the latter can ensure long-term growth, because they can maintain the momentum for change. Inhovation steadily deteriorates over time unless the implication of change is amended, maintained, improved. There is no such thing as static constant. Thus innovation must be succeeded by a Kaizen strategy, if the effects of that great-leap-forward are to be compounded into some solid long-term objectives. Please see Figure 3.8, which compares Kaizen and innovation over time.


o f -


Table 3.2 presents a comparison of innovation and Kaizen.

Process-driven,not results driven By focusing on processes, effort is rewarded as much as the ultimate outcome.A further by-product of this is that in getting the process under control, results are automatically improved. Obsession with results, the 'get-rich-quick? and 'I want it done yesterday, I don't care how!' philosophy are alien to the Kaizen culture. Management loses sight of establishing good working practices of employee motivation and the value of each individual's contribution. Let us see the outcome of results-driven criteria: 8 Short-term focus on profit 8 Unhappy employees responding to carrot-and-stick mentality 8 Lack of individual motivation, therefore frustration with the job 8 Absenteeism and high rates of staff turnover

e Tense workplace atmosphere, breakdown'in communication between management and employees e Only achievement is rewarded

How CIUI.process-driwn cribria contribute to condnwue hprowment?

e It can restore pride in work e The processes (i.e., what is adtually happening to produce the end-result) are subjected to in-depth analysis. Improving the process automatically ensures that results will be improved e Working standards are present e It invokes discipline,participation, involvement, morale, communicati~n e The effect and achievement are both rewarded
The next process is Ure cusWmer This was a phrase coined by Kaoru Ishikawa to pave the way for breaking down departmental barriers and promoting cross-functional management. If quality is to be maintained and improved in the production process, there must be smooth communication between the various people involved in the stages cf production and consumption. Thus, the customer can be either the internal customer or the external one, but the principle remains the same, that is:

Don't P w en Defeave wrk to the next person clown the line

This is an absolute criterion of dontinuous improvement, because a person cannot endlessly firefight against the incompetence or negligence of others. The result would be chaos of wastage - in time, in money and in people - ultimately in the pkoduct itself. Kaizen cannot accommodatewaste. Thus refocusing one's objectives so that sectiondism is reduced within an organisation means that cohesion can be fostered. Where the external customer is concerned, the concept of 'market-in' not 'product-out' is introduced. This n~eans that it is the influence bf the external customer and his perspectives, which drive the change, rather than the company creating a product, which moulds inadequately to customer needs. The customer becomes the focus for initiating improvement, which is a fundamental axiom for introducing quality into the organisation (Figure 3.9).

Figure S . Q : Customer Fooucr

You have read about standardisation in Unit 1. Standardisation is an important part of Kaizen activity because unless standards have been set, there will be no focus on improvement. Following the PDCA cycle, the SDCA (Standardise - Do - Check - Action) cycle is brought into play to create a precise form of measurement against which the individual can compare his work. At the same time, if he has a set of rules to follow it will challenge his imagination to improve upon those sta~~dards and provide the database upon which measurements can proceed. The outcomes of standardisation include: Enforcement of discipline on the workforce Greater conformity of output Establishment of a performance measure which, when compared with the PDCA cycle, allows evaluation of how effective any improvement has been. One of the chief merits of initiating a Kaizen programme is that it prompts management to ponder over whether current standards are relevant, when they were last appraised and revised, how to challenge them further, even to question why they are needed. Current practices can be scrutinised for shortfdl. How does one go about creating standards? In Kaizen, the way forward is to: First discover your processes, that is, find out just what it is that you are doing Find cut performance measures, i.e., outputs and inputs, the level at which things are currently being If no standards are in place, then use these as your current levels Find out ways in which the output can be improved Initiate Improvements and achieve higher standards, which can then be used as the next point of reference for further improvements.

Reducing waste Waste can be a subtle form of lnss or it can be a major haemorrhage depending on how inefficiently an organisation is run. Even before continuous improvement can begin, the problem of waste has to be addressed. Factors such as quality, cost and scheduling are all areas in which waste can occur, but the human factor is no less important. Waste of resources, of talent, is probably the most self-destructive of all. In order to reduce waste, one must first identify it. The most common checkpoints a 6 listed below: 1. Waste of work force through inadequate training and development (MAN). 2. Waste in the way that things are done: non-value-adding tasks (METHODS). 3. Waste in unused or underutilised machinery; waste of the machinery if it is not properly maintained (MACHINES). 4. Waste in materials, from paper and other stationery, to waste of raw materials through inventory and stockpiling. Waste when goods have to be warehoused,waste when these deteriorate over time (MATERIALS). 5. General waste through lack of measurements, thus being unaware whether targets are arbitrary or not (MEASUREMENT). 6 . Finally,waste in each phase of the work-in-progress, when quality has not been built in, but relies on

~BlookeofTQM Poka-Yoke and Zero defects Inspections are customary in many areas of industry. They are costly and painstaking. Eventually, they do not contribute greatly to reducing the error rate in production. The problem is addressed after it has arisen - even 100 percent inspection will not mean that defectives are rooted out from the system. The real way to address the problem of erro;- and error will a the outset. Hence the concept ofpoku -yoke, or y i idea is to identify areas in which errors are likely to occur, then introduce a number of devices that are a fail-safe mechanism for preventing the error in the first place. This ties with the theme of Kaizrri that advocates prevention rather than cure. Defects are not tolerated, nor are defectiks passed down to the next person dealing with the product. Thus, instead of sampling and all its itinerant inaccuracies, self-inspection is promoted, and following that. the person next in the-receiving line also checks the item before working on it. This is a dualmethod of eliminating the inspection role from people who are not directly responsible forthe manufacture of the item, and passing on the responsibility and ownership of it to the people concerned. zerodefects are achieved via a multiplicity of means: Source inspection, concentrating on the cause of error, not the effect. e Hundred percent inspection using mistake-proofing devices. e Immediate action to stop the mi~fake from continuing further into the system.

Forgetfulness Misunderstanding Wrong identification Inexperience Absent-mindedness Ignoring rules


Standads unavailable Surprises due to malfunction Sabotage

5. INFORMATION (or l a d of it)

The usefulness of Poka-Yoke lies in that it reduces waste in time due to less rework in materials due to less scrap being produced, and in manpower as more time is spent productively.


Errors and defects


Errors cause defects. Errors can be of two types: 1. Errors about to occur 2. Errors already occurred. Of course, the logical beginning would be to question why errors arise in the first place. Figure 3.11 lists some common causes. The majority of errors can be traced to human fallibility. In order to remove the defect, there has to be a warning, for example a bell or a buzzer, followed by shutdown of the process which caused the error. This gives a uniform control to the process and allows the error to be dealt with at source. Some machines shutdown automatically in the event of defect. Others require manual control. All require vigilance on the part of the operator, who is the lynchpin for the process. It must be pointed out that Poka-Bke, as with all the other Kaizen techniques, cannot function in isolation. It requires the participation of all the employees within the company.The will to succeed to prevent errors and therefore the defects that they cause must be adopted unanimously. The benefits, as usual, are potentially enolindus.

Iidohka or autonomation is a method initiated by Taichii Ohno at Toyota regarding defects. In order to reduce the amount of waste that occurred, machines were designed to stop automatically with a problem (Figure 3.12). Recurrence of the same mistake is then prevented by a thorough check of components, asking the question'Why?'enough times to be able to treat the real problem and not the symptoms masking it. In this way one employee can look after many machines. Furthermore, it reduces checking and maintenance of machines be6ause they function only when they produce correct items.



1 C


Figure 8.18: Autonomation?"

duet-in-time(JIT) Consider a factory, for argument's sake, although the discussion is universally applicable. What are the steps that occur when manufacturing an itemlproduct a good? Purchase and storage 1. Raw materials (stock) are ordered. 2. Additional buffer stock is ordered (just-in-case). 3. Items have to be stored, accounted for, delivered as and when necessary.
Production 4. Raw materials join the assembly line 5. Activities to use the materials pre scheduled 6. Goods may or may not be produced right first time 7. Finished products must be stored, during which time they may be damaged or deterioration in some way may occur making them unusuable. Delivery 8. Goods eventually are delivered to the consumers 9. Goods may or may not be the correct items reordered. The lust-in-Time philosophy revolves around the elimination of waste" (Figure 3.13) and seeks to: lot Reduce inventory Reduce scrap and rework.

JIT approach
JIT approach is achieved Firstly, by tightening the processes that go into making a product. Secondly,by streamlining the flow along the assembly line so that there is neither too much nor too little being produced at each step along the way. The employees and the processes are not idle, but they are also not overwhelmed. Thirdly, by overlapping operations Fourthly, by minimising set-up times Fifthly, by actively involving the employees. The end result is Piece-For-Piece Processing. No storage, no buffer stocks,no damage, no waste. No worries.
What are the costs? The greatest cost of Kaizen is TIME. Time is needed for all the different ideas to be explained, to adopt, then to establish them as normal practice in the workplace. Management needs time to teach itself and then to sell the idea of continuous improvement to its employees. A Kaizen programme must not have definable time limits set on it from the beginning. The other cost of Kaizen is commitment. Without the drive, the ambition to improve, any effort will ultimately become half-hearted. People must be shown the benefits that can be derived from the Kaizen way of thinking by putting it in sharp juxtaposition to the practices

currently in vogue. The potential costs of not using b i z e n are varied and far-reaching. They affect such internal aspects of job failure as rework. External cost$are connected to repair and guarantee claims; the useless expenditure on inspections and audits which still fail to ensure quality at the beginning of the manufacturingprocess, not at the end of it; the use of unqqalified personnel through lack of training. We shall now discuss advantagqs and disadvantages of using Kaizen


Mgars 5.13: The Coat Of ProdwtionAnd Olrsr-Pmdu&ion Without JI!C

The adv8atpBea Kaizen can be useful in any ind@try, whether it is ailing or not. Its advantages are: Primarily it puts peoplefirst. It concentrates attention on the processes and activity is centered on getting the process right. a It rewards effort as well as achievement. It is a method for active problem solving. It delegates responsibility to d l participants. It gives employees a sense of purpose. It acts as a motivator,for budging quality into a product. It eliminates the need for inspection. a It harbours group-centered activity and therefore encourages teamwork. It helps to breakdown departmental barriers. a The focus for improvement is returned to the needs of the customer. a It aims to reduce waste and iuperfluous activity which are non-valueadding to the company. It reduces operation costs b$ making reasons for high costs visible to management. It helps to establish long-terh goals for the company so that it can keep abreast of change.

The above are only some of thk more obvious reasons for starting down the path to continuous improvement. The list is limited only by the imagination of tke observer. In any activity, there are endless opportunities to do things better, thlen to do better again. B y adopting the philosophy whole-heatedly, people

can be inspired to achieve levels of quality and artisanship hitherto thought impossible. The human mind is limitless in its ability to achieve.Al1 that is required is a believing heart, and a strong will. The desire tc improve, once caught, will be self-perpetuating when the benefits of that improvement become visible. People must believe in themselves and their ability to do better. Of course, it is frightening to change, to break out of a humdrum state of affairs. However, if one does not try, chances are that the rut merely grows deeper and more difficult to get out of.

Disadvantage8 Kaizen is not a new idea - it has been in practice, both in parts and in toto for good many years now. However the Indian industries are still shy of exploiting its full potential. The reasons are: The difficulties in getting started. Just where does one start? (The unequivocal answer to that would be
with management!) The difficulties in understanding the concept as a whole from an Indian point of view.

Changing people's attitude to accept something different and by implicationforeign (the answer to that again would be to remove theforeignness by emphasising the points ofsimilarity. Human beings are similar enough in the most basic elements wherever they happen to live). Maintaining momentum once the initial fizz has gone out of the proceedings.Al1 too often, introductions are gimmicky and full of razzmatazz, but they fail to have substance and therefore inevitably fail.

Getting people to think in the long term. Convincing people that quality is not costly, but actually saves money, time and effort. Getting away from 'inspection' culture, which admits failure even before it occurs. Diehard managerial practice which thrives on territoriality and the big- brother syndrome. The time investment of starting and keeping going any continuous improvement initiative. People are desperate about time, but how effectively is it managed? Too much involvement needed from management. It is hard work, but managers work hard already. They are just not working on the right things, that is all!

Will I U h n work for us? No one recipe will guarantee success. Neither is it doomed to failure. Below are a few guidelines for achieving that first crucial step towards Kaizen: 1. Start simple 2. Start small 3. Choose something which can be achieved 4. Choose people who are committed to the project 5. Give it a high profile 6. Give it priority 7. Give it a short time scale


9. 10. 11. 12.

Give it a chance - something which has a high probability of success Involve high command Publish and publicise the results (especially internally!) Adopt it as company standard if appnopriate Start again on another small project, either with the same group or a different one.

We have considered various aspects of Kaizen.Its three main objectives are stated. How Kaizen improvement is brought out through techniques such as SS, JIT, Poka-Yoke, etc. are also discussed. The most vital determinant in achieving lasting and continuous improvement is the attitude and behaviour of people, and Kaizen strategies cannot work without the commitment of the people putting it into practice. Although most organisations may know this theoretically, their human resource practices, their leadership styles and their attitudes to customers by no means always reflect this. This IGNOU course aims to help bridge this gap between theory and practice.

Activity 8 Select some wasteful practices in your organisation and apply Kaizen techniques to improve them.

3 . 9


In this unit we concentrated on the building blocks of TQM, and focussed on key success factors for TQM to work. We dealt in detail about the PDCA cycle and the use and application of Kaizen. Kaizen can work across a diversity of industries as well as a diversity of cultures. It does work, once it has been fully understood and accepted. It requires full participation. In most organisations, TQM represents a major cultural change - a change in the way the organisation defines itself, its priorities and values, and the way it deals with its personnel, its customers and its suppliers. It embraces many long-standing rnarlagement concepts and strategies, which in combination produce a very different way of operating an orgahisation. Finally, TQM is not a substitute for good management. TQM is a radically new way of managing business, a way that challenges management's traditional role, and demands leadership and commitment. For many managers, that challenge may be too difficult,and they may continue to look for the easy way out.



Commitment: A responsibility or promise to follow certain beliefs or a certain course of action. Commitment to quality has to begin at th$ very top of the organisation.

Continuous iniprovement: The principle of continually seeking an improved performance. Cross-functional teams: Teams similar to quality teams but whose members are from several work units that interface with one another. These teams are particularly useful when work units are dependent upon one another for materials, information, etc. Empowerment: Giving staff the power to make decisoins. Goal: A statement of attainmentlachievement that one proposes to accomplish or attain with an implication of sustained effort and energy directed to it over a long term. Input: Materials, energy, or information required to complete the activities necessary to produce a specified output (work product). Measurement: The act or process of measuring and comparing results with requirements. A quantitative estimate of performance. Mission: The particular work which one believes is one's duty. It clearly establishes the course of an organisation - its reason for existing. Need: A lack of something required, desired, or useful; a condition requiring provision or relief. Usually expressed by users and customers. Objective: A statement of the desired result to be achieved within a specified time. By definition, an objective always has an associated schedule. Output: The .specifiedend result. Required by the recipient. Outputs Material or information provided to others (internal or external customers). Process control: The set of activities employed to detect and remove special causes of variation in order to maintain or restore stability (statistical control). Process improvement: The set of activities employed to detect and remove common cases of variation in order to improve process capability. Process improvement leads to quality improvement. Process management: Management approach comprising quality management and process optimization. Process owner: A designated person within the process, who has authority to manage the process and responsibiity for its overall performance. Process review: A n objective assessment of how well the methodology has been applied to your pbcess. Emphasizes the potential for long-term process results rather than the actual results achieved.
Quality teams Also referred to as Performance Action Teams or Quality Improvement Teams, may be composed of volunteers who meet regularly to review progress toward goal attainment for planning for change for deciding upon corrective actions, etc. Members are usually from the same work unit. Requirement: A formal statement of a need, and the expected manner in which it is to be met. Requirements: What is expected in providing a product or service. The "it? in "do it right the first timesn Specific and measurable customer needs with an associated performance standard. Sample: A finite number of items taken from a population.

Strategy:A broad course of action, ch~sen from a number of alternatives, to accomplish a stated goal in the face of uncertainty.

Variable: A data item which takes 04 value within some range with a certain frequency or pattern. Variables may be discrete, that is, limited ia value to integer quantities (for example, the number of bolts produced in a manufacturing process). Discrqte variables relate to attribute data.Variables may also be continuous, that is, measured to any desired deg*e of accuracy (for example, the diameter of a shaft). Continuous variables relate to variable data.

3 . 11 . Self-Assessment @ I

2. 3. 4. 5.

What are the Total Quality Management cornerstones? List the set of beliefs that a TQM practitioner must have. What are the key success factors that make TQM work? What are the obstacles to implementing TQM? Give an example of the use of the POCA cycle in your personal life. What are the advantages of Kaizen? List various techniques for continuous improvement. Why are Indian industries not adopting Kaizen principles?

3 . 1 8 . Further Readings
Conti,Tito (1993) Building Total ~ u a l i t ~Guide : h for Management; London: Chapman & Hall. Koehler, @rgW. & Pankowski, Joseph M. (1996) Qualify Government: Designing, Developing and Implementing TQM;Florida: St. Lucie PresS. Sadgrove, Kit (1995) Making TQM Work;London: Kogan Press. Besterfleld, Dale H. et al(1999) Total Qulolity Management, N e w Jersey: Prentice Hall Inc.

1. Kochler, JerryW. & Pankowski, JogephM. (1996) Quality Government: Designing Developing and Implementing TQM. Florida: St. Lucie V s s , p. 24. 2. U. S. General Accounting Office (1991) Management Practices: US. Companies Improve Peformances through Quality Efforts. I 3. Schmidt, W a r r e n H. & Finnigan, JetbmeR (1993) TQ Manager A Practical Guidefor Managing in a Total Qualify Organisation.San Franci$co: Jossey-Ban Publishers, p. 23. 4. lbid. p. 25. 5. Sadgrove, Kit (1995) Making TQM Work.London: Kogan Page, p.29. 6. Ibid, p. 30.

7 . Huda, F . (1994)Kaizen: The Understanding and Application of Contitruous Improvement. U.K.: Stanley Thornes, p. 8 . 8 Ibid,p. 8. 9. Ibid, p. l o . 1 0 . Imai,Massaki (1986)Kaizen. Tokyo: The Kaizen Institute. 11 . Imai, Massaki (1991)Kaizen: The K e y to Japan'sCompetitive Success. New York McGraw-Hill Inc. 1 2 . Huda, F . op. cit. p. 17. 1 3 . Ibid p. 1 8 . 1 4 . Ibid p. 20.