UNIT – II

TQM PRINCIPLES

LEADERSHIP
“Leadership is lifting of man’s visions to higher sights, the raising of man’s performance
to a higher standard, the building of man’s personality beyond its normal limitations”.
Introduction:
The success of quality management is to a greater extent is influenced by the quality of
the leadership. Peter Drucker, the eminent management thinker and writer quotes:
“Leadership is lifting of man’s visions to higher sights, the raising of man’s performance
to a higher standard, the building of man’s personality beyond its normal limitations”.
Leadership is the process of influencing others towards the accomplishment of goals.
Leader triggers the will to do, show the direction and guide the group members towards
the accomplishment of the company’s goal.
CHARACTERISTICS FOR LEADERSHIP
· The customers first.
· Value people.
· Built supplier partnership.
· Empower people.
· Demonstrate involvement/commitment.
· Strive for excellence.
· Explain and deploy policy.
· Improve communication.
· Promote teamwork.
· Benchmark continuously.
· Establish system.
· Encourage collaboration.
Leadership Roles
1. Producer role.
2. Director role.
3. Coordinator role roles.
4. Checker role.
5. Stimulator role.
6. Mentor role.
7. Innovator role.
8. Negotiator role.
Leaders
➢ Shape the Organization’s value
➢ Promote the Organization’s value
➢ Protect the Organization’s value and
➢ Exemplifies the Organization values
Characteristics Of Quality Leaders
1. They give priority attention to external and internal customers and their needs.
2. They empower, rather than control, subordinates.
3. They emphasis improvement rather than maintenance.
4. They emphasis prevention.
5. They emphasis collaboration rather than competition.
6. They train and coach, rather than direct and supervise.
7. They learn from the problems.
8. They continually try to improve communications.
9. They continually demonstrate their commitment to quality.
10. They choose suppliers on the basis of quality, not price.
11. They establish organizational systems to support the quality effort.
12. They encourage and recognize team effort.
Leadership Concepts
A leader should have the following concepts
1. People, Paradoxically, need security and independence at the same time.
2. People are sensitive to external and punishments and yet are also strongly self -
motivated.
3. People like to hear a kind word of praise. Catch people doing something right, so you
can pat them on the back.
4. People can process only a few facts at a time; thus, a leader needs to keep things simple.
5. People trust their gut reaction more than statistical data.
6. People distrust a leader’s rhetoric if the words are inconsistent with the leader’s
actions.
The 7 Habits of Highly Effective People:
1. Be Proactive
2. Begin with the End in mind
3. Put First Things First
4. Think Win – Win
5. Seek First to Understand, then to Be Understood
6. Synergy
7. Sharpen the Saw (Renewal)

STRATEGIC QUALITY PLANNING

Strategy:
In order to understand the concept of strategic management, first we need to understand
the literal meaning of the word “strategy”. The definition is mentioned below:
1. The science and art of using all the forces of a nation to execute approved plans as
effectively as possible during peace or war. The science and art of military command as
applied to the overall planning and conduct of large-scale combat operations.
2. A plan of action resulting from strategy or intended to accomplish a specific goal.
3. The art or skill of using stratagems in endeavors such as politics and business
Relation of Strategic Planning and Total Quality Management:
When an organizations chooses to make quality a major competitive edge
(differentiation), it becomes the central issue in strategic planning. This is especially
reflected in vision, mission and policy guidelines of an organization.
An essential idea behind strategic quality planning is that the product is customer value
rather than a physical product or service. This feat cannot be achieved unless an
organization creates a culture of quality and no strategy and plan can be worthwhile
unless it is carefully implemented.
What do you understand by the term quality statements? Elaborate them with examples.
Quality statements are part of strategic planning process and once developed, are
occasionally reviewed and updated.
There are three types of quality statements:
1. Vision statement
2. Mission statement
3. Quality policy statement
The utilization of these statements varies from organization to organization. Small
organization may use only the quality policy statement
1. Vision Statement: The vision statement is a short declaration what an organization
aspires to be tomorrow. A vision statement, on the other hand, describes how the future
will look if the organization achieves its mission.
Successful visions are timeless, inspirational, and become deeply shared within the
organization, such as:
IBM’s Service
Apple’s Computing for the masses
Disney theme park’s the happiest place on the earth, and
Polaroid’s instant photography
2. Mission Statement: A mission statement concerns what an organization is all about.
The statement answers the questions such as: who we are, who are our customers, what
do we do and how do we do it. This statement is usually one paragraph or less in length,
easy to understand, and describes the function of the organization. It provides clear
statement of purpose for employees, customers, and suppliers.
An example of mission statement is:
Ford Motor Company is a worldwide leader in automatic and automotive related products
and services as well as the newer industries such as aerospace, communications, and
financial services. Our mission is to improve continually our products and services to
meet our customers’ needs, allowing us to prosper as a business and to provide a
reasonable return on to our shareholders, the owners of our business.
3. Quality Policy Statement: The quality policy is a guide for everyone in the
organization as to how they should provide products and services to the customers. It
should be written by the CEO with feedback from the workforce and be approved by the
quality council. A quality policy is a requirement of ISO 9000.
A simple quality policy is:
Xerox is a quality company. Quality is the basic business principle for Xerox. Quality means
providing our external and internal customers with innovative products and services that
fully satisfy their requirements. Quality is the job of every employee.
How an organization can do strategic quality planning?
The process starts with the principles that quality and customer satisfaction are the
center of an organization’s future. It brings together all the key stakeholders.
The strategic planning can be performed by any organization. It can be highly effective,
allowing the organizations to do the right thing at the right time, every time.
There are seven steps to strategic Quality Planning:
In order to integrate quality with the strategic planning process, a systematic and
sequential procedure has to be adopted. There are seven basic steps to strategic process
planning. They are

1. Customer Needs: The first step is to discover the future needs of the customers. Who
will they be? Will your customer base change? What will they want? How will they want?
How will the organization meet and exceed expectations?
2. Customer Positioning: Next, the planners determine where organization wants to be
in relation to the customers. Do they want to retain, reduce, or expand the customer base.
Product or services with poor quality performance should be targeted for breakthrough
or eliminated. The organization’s needs to concentrate its efforts on areas of excellence.
3. Predict the future: Next planners must look into their crystal balls to predict the future
conditions that will affect their product or service. Demographics, economics forecasts,
and technical assessments or projections are tools that help predict the future.
4. Gap Analysis: This step requires the planner to identify the gaps between the current
state and the future state of the organization. An analysis of the core values and concepts
is an excellent technique for pinpointing gaps.
5. Closing the Gap: The plan can now be developed to close the gap by establishing goals
and responsibilities. All stakeholders should be included in the development of the plan.
6. Alignment: As the plan is developed, it must be aligned with the mission, vision, and
core values and concepts of the organization. Without this alignment, the plan will have
little chance of success.
7. Implementation: This last step is frequently the most difficult. Resources must be
allocated to collecting data, designing changes, and overcoming resistance to change. Also
part of this step is the monitoring activity to ensure that progress is being made. The
planning group should meet at least once a year to assess progress and take any corrective
action.

QUALITY COUNCILS
It is a team to provide overall direction for achieving the total quality culture (TQC). It is
a team formed in the organization with an objective of building quality into the culture of
the organization. Quality council is composed of:
Chief Executive Officer
Senior managers of the functional area
Quality council coordinator or consultant.
OBJECTIVES OF QUALITY COUNCIL
➢ To raise the quality consciousness in the organization through seminars, study
tours & using other forms of promotion.
➢ To ensure effective functioning of the organization on the quality statement & plan.
➢ To encourage basic and applied R&D in the field of quality and dissemination of its
results to the organization.
➢ To raise the level of training of personnel engaged in quality activities.
➢ To facilitate upgradation of testing and calibration facilities and laboratories.
Coordinator: Coordinator’s position should be a bright young person with executive
potential. That person will report to the CEO. Responsibilities:
1. Build two-way trust, propose team needs to the council, share council
expectations with the team, and brief the council on team progress.
2. Ensure that the teams are empowered and know their responsibilities
Activities:
➢ To assist the team leaders,
➢ Share lessons learned among teams,
➢ Have regular leader’s meetings in smaller organization where managers may be
responsible for more than one functional area, the number of members will be
smaller
DUTIES OF QUALITY COUNCIL
✓ To establish core values & quality statements (Vision st., Mission st., Quality Policy
st.)
✓ To establish strategic long-term plan with goals and annual quality improvement
program with objectives.
✓ To plan training & education programme.
✓ To determine & monitor the cost of poor quality.
✓ To perform and monitor the performance measures for each functional areas.
✓ To determine continually those projects that improve the processes particularly
that affect external & internal customer satisfaction.
✓ To establish multifunctional project and departmental teams and monitor the
progress.
✓ To establish/revise the recognition & reward system periodically.

EMPLOYEE INVOLVEMENT
Employee involvement happens when employees participate in key management
meetings. It is the process of keeping employees in line with the values and work ethics
of the organization.
Hiring the best talent is not enough. It is important to form them to your organization’s
needs. Employees’ skills, expertise, and experience add significant value to any
organization. However, in order to bring the best in them, it is important to involve your
employees and create a positive culture.
What is Employee involvement?
Employee involvement is the process of allowing employees to give their opinion on
decisions that affect their work. This could be done through company meetings,
committees, and so on. Employees have more control over their work and workplace
when they participate in decision-making.
This means that employees aren’t just going through the motions of their daily tasks.
They’re also actively involved in the management and decision-making processes of the
company.
Importance of Employee involvement
Any employee benefits greatly from employee engagement. But what does it mean, and
why is it so important? Here are some of the causes why employee engagement is so
important.
Productivity Growth: Productivity growth can be an important component of employee
engagement. Employers want productivity from their employees first and above all. So, it
is important to press the buttons, which can boost productivity.
It’s a scientific fact, that when we dedicate more time and effort to a task or job, we
become more visible in our thought processes. We increase awareness, manage the
situation with comfort, and keep our minds at ease.
Employees make calculated decisions when they are involved. They may plan their work.
They may bring more passion and commitment to their jobs. This enhances the
organization’s productivity and employee growth.
Improved morale: Employee morale refers to an employee’s attitude, mood, and
satisfaction with their employment. Achieving these goals will involve a work culture that
values employee engagement and motivation. Employees who have high morale are more
likely to stay inspired and work hard to achieve the company’s goals. They keep a positive
attitude toward everyone they come into contact with. They work quickly and efficiently
to fulfill their tasks.
Employee engagement improves employee morale and psychological involvement.
Employees that are confident in themselves are more engaged, joyful, and like their jobs.
Good Relationships: Having a positive and friendly relationship with your employees is
one of the most important keys to success. Miscommunications are unavoidable in an
organization without a transparent relationship. As a result, progress toward success is
hampered.
Involvement allows everyone to share their knowledge. This creates a strong bond
between managers and employees. It also introduces the concept of accepting each
other’s ideas. And it improves the working environment.
Employee involvement with the organization: The following are elements of a learning
environment:
➢ Excellent training programs
➢ Branding of employees
➢ Employee advocacy
➢ Employee skill-building modules
However, it also includes an interactive exchange of ideas in the workplace. Employee
feedback is one method for allowing your employees to participate in organizational
decisions. This will assist you in understanding the changes that they require in order to
perform well. They become more loyal and dedicated when you listen to them and
motivate them to work better. And they assist you in creating a bright future.
Innovative Thinking: You will be able to keep your employees informed if they
participate in your executive meetings. It will assist them in keeping them up to date on
developments.
Employee involvement gives employees a sense of belonging to the organization. As a
result, they become more dependable. They accept greater responsibility for their work
and achieve better results. This increases the possibilities for creative thinking and
problem-solving in the workplace.
As an employer, you need to provide freedom and space to the employees. This will assist
in the generation of new ideas, which will keep you competitive. In addition, it will provide
you with new ideas that will have an impact on the organization.
Better adaptation to change management: As an employer, you need to be open to
change and ready to face the challenges that come with it. In today’s competitive and
dynamic environment, you need to be unique to maintain an opportunity, and the
organization that adapts to change is likely to be at the top of the list.
When you involve employees in critical company issues, you open yourself up to new
ideas and perspectives. It assists you in anticipating future changes, and how to deal with
them more effectively when the time comes. You get to know everyone’s points of view. It
extends your vision, which benefits everyone.

MOTIVATION
The word Motivation derives from the Latin word “Movere”. The Latin word “Movere”
means “To move”, “To drive” or “To drive forward” etc. Motivation can be defined as
stimulating, inspiring and inducing the employees to perform to their best capacity.
Motivation is a psychological term which means it cannot be forced on employees. It
comes automatically from inside the employees as it is the willingness to do the work.
Joe Kelly defined Motivation as “Motivation is a process where by needs instigate
behavior directed towards the goals that can satisfy those needs.”
According to W. G. Scot, “Motivation means a process of stimulating people to
action to accomplish the desired goals.”
Process of Motivation
Unsatisfied need: Motivation process begins when there is an unsatisfied need in a
human being.
Tension: The presence of unsatisfied need gives him tension.
Drive: This tension creates an urge of drive in the human being an he starts looking for
various alternatives to satisfy the drive.
Search Behavior: After searching for alternatives, the human being starts behaving
according to chosen option.
Satisfied need: After behaving in a particular manner for a long time then he evaluates
that whether the need is satisfied or not.
Reduction of tension: After fulfilling the need the human being gets satisfied and his
tension gets reduced.
For example, if an employee develops a need to earn more, this need will make him
restless and he will start thinking how to satisfy his need. To satisfy his need he may think
of working hard in organization and get promotion so he will start working hard. After
sometime he will get incentives or increments or promotion which will satisfy his need.
Types of Motivation
Achievement Motivation: It is the drive to pursue and attain goals. An individual with
achievement motivation wishes to achieve objectives and advance up on the ladder of
success. Here, accomplishment is important for its own shake and not for the rewards
that accompany it. It is similar to ‘Kaizen’ approach of Japanese Management.
Affiliation Motivation: It is a drive to relate to people on a social basis. Persons with
affiliation motivation perform work better when they are complimented for their
favorable attitudes and co-operation.
Competence Motivation: It is the drive to be good at something, allowing the individual
to perform high quality work. Competence motivated people seek job mastery, take pride
in developing and using their problem-solving skills and strive to be creative when
confronted with obstacles. They learn from their experience.
Power Motivation: It is the drive to influence people and change situations. Power
motivated people wish to create an impact on their organization and are willing to take
risks to do so.
Attitude Motivation: Attitude motivation is how people think and feel. It is their self
confidence, their belief in themselves, their attitude to life. It is how they feel about the
future and how they react to the past.
Incentive Motivation: It is where a person or a team reaps a reward from an activity. It
is “You do this and you get that”, attitude. It is the types of awards and prizes that drive
people to work a little harder.
Fear Motivation: Fear motivation coercion’s a person to act against will. It is
instantaneous and gets the job done quickly. It is helpful in the short run.
Features of Motivation
Motivation is a psychological phenomenon: Motivation is an internal feeling which
means it cannot be forced on employees. The internal feelings such as need, desire,
aspirations etc. influence human behavior to behave in a particular manner. For example,
desire to have a new house, respect and recognition etc.
Motivation produces goal directed behavior: Motivation induces people to behave in
such a manner so that they can achieve their goal. Motivated person need no supervision
or direction. He will always work in desired manner. For example of a person has a motive
to get promotion so he will work efficiently to get promotion.
Motivation is a complex process: Motivation is a complex and difficult task. In order to
motivate people a manager must understand various types of human need. Human needs
are mental feelings which can be measured accurately. If manager measures them
accurately then also every person uses different approaches to satisfy his need. Some get
satisfied with monetary incentives, some with non-monetary, some with positive and
some with negative motivators. So it is not possible to make generalization in motivation.
Motivation is a dynamic and continuous process: Human beings are ever-changing.
Human needs are unlimited and go on changing continuously. Satisfaction of one need
gives rise to another so managers have to continuously perform the function of
motivation.
Importance of Motivation
Motivation improves performance level of employees: The motivation improves the
efficiency level of employees which means the employees start performing the job to the
best of their ability with minimum wastage of time and resources because motivated
employees always go for best utilization of resources. The motivation bridges the gap
between the ability to work and willingness always improves efficiency.
Help in achieving the organizational goals: The motivated employees always try to
achieve the organizational goal and contribute their best efforts for the realization of
organizational goal as they know with the achievement of organizational goal only they
can achieve their personal goal. All the employees contribute their efforts in one direction
of accomplishment of goal.
Motivation creates supportive work environment: In motivation the relations
between superior and subordinates are always improved. When the employees get their
need satisfied or get the recognition and respect in the organization then they always offer
a supportive hand to superiors. There is more co-operation and co-ordination in the
organization and all the employees work with the team spirit.
Motivation helps the managers to introduce changes: The motivated employees show
less resistance in accepting the changes according to changes in the business
environment because they know if the changes are not implements in the organization,
not only the organization will lose by this but the employees also will find it difficult to
get their needs fulfilled. Motivated employees are always supportive and co-operative in
accepting changes in the organization.
Reduction in Employee Turnover: The motivation creates confidence in the employees
to get their need satisfied in the organization itself. They always select the alternative to
remain in the organization and increase their earning rather than leaving the organization
and increasing their earnings. With motivation employee turnovers are less because the
satisfied employees never leave the job.
Advantages of Motivation
Advantages to Management or Organization:
➢ Increase in the efficiency and productivity of employees. Motivation ensures a high
level performance of employees.
➢ Better co-operation from employees and cordial labor-management relations.
➢ Reduction in the rate of labor absenteeism and turnover.
➢ Reduction in the wastage’s and industrial accidents.
➢ Improvement in the morale of employees.
➢ Quick achievement of business/corporate objectives and favorable corporate
image.
Advantages to Employees or Workers:
➢ Employees get various monetary and non-monetary facilities/benefits which
provide better life and welfare to them.
➢ Security of employment and other benefits due to cordial relations with the
management.
➢ Job attraction and job satisfaction.
➢ Higher status and opportunities of participation in management.
➢ Optimistic approach and outlook of employees towards company, management
and superiors.
➢ Reduction in the rate of labour turnover which is harmful to employees and
management.
➢ Better scope for improvement in knowledge and skills of employees.

EMPOWERMENT
The principles of TQM to take root and yield dividends, there must be a high degree of
employee involvement at every organizational level. For this reason, employee
empowerment is considered one of the core tenets of TQM.
Empowerment means giving people authority to make decisions based on what they feel
is right, have control over their work, take risks and learn from mistakes, and promote
change (Evans and Lindsay, 2008). Empowerment is the process of enabling or
authorizing an individual to think, behaves, take action, and control work and decision
making in autonomous ways. This means leaders and managers relinquishing some of
their powers that they previously held in terms of decision-making. Empowerment
diffuses decision making to employees so that employees make decisions regarding what
they do and how they do it. Empowering employees is giving employees ‘ownership of
their jobs’. Empowered employees are given ownership of the processes they are
responsible for and the products or services generated by those services. Organizations
may empower their employees by encouraging them to set their own goals, judge their
own performance and take responsibility for their actions. Empowerment builds
confidence in workers by showing them that the company has confidence in their ability
to make decision on their own. Empowered employees take pride in their work and the
resulting products or services produced by it. It helps generate a commitment to the
organization and develop a sense of pride. It presents an opportunity to employees to
develop them and advance their careers. It allows employees to use their skills and talents
to the maximum, and hence promotes the spirit of self -determination.
The role of employee empowerment in total quality management:
The basic philosophy of total quality management is to involve every employee in the
organization along with its suppliers and distributers to improve quality and thus
enhance customer satisfaction. Employee involvement is very important in any T.Q.M
initiative, as it is a system wherein employees are encouraged to use their expertise and
knowledge to suggest methods for improvements in their work areas. These suggestions
could relate to improvements in the job, the product, the work atmosphere or the
company as a whole. Many companies have ventured into a participation-style of
management by involving employees in the problem solving and decision-making
processes. While the actual practice of employee empowerment varies across
organizations, empowerment is based on the concept of job enlargement and job
enrichment. Job enrichment involves increasing the depth of the job to include
responsibilities that have traditionally been carried out at higher levels of the
organization.
Benefits of employee empowerment
Some of the benefits of empowering employees include;
Improved morale: Involving employees in decisions and policy changes that directly
affect their job while also empowering employees to be more autonomous greatly
improves company morale at large.
Increased productivity: Quality management practices also translate into increased
productivity
Team cohesion: Employee empowerment fosters better relationships between
employees and with their managers, as employees that are given more independence tend
to form better working relationships.
Innovation: Employee empowerment cultivates innovation as employees that have a
stake in company growth and sustainability will offer more ideas and problem-solving
solutions when solutions arise.
Principles of employee empowerment
1) Demonstrate that you value people- your regard for people shines through in all of your
action and words. Your goal is to ensure and show your appreciation for each person’s
unique value.
2) Share leadership vision- help people feel that they are part of something bigger than
themselves and their individual jobs.
3) Share goals and direction- share the most common and important goals and direction
for your group.
4) Trust people- trust the intention of the people to do the right thing, make the right
decision, and make choices that still work.
5) Provide information for decision making- make certain that you have given people or
made sure that they have access to all of the information they need to make thoughtful
decisions.
6) Delegate authority and impact opportunity, not just more work- don’t just delegate the
drudge work, delegate some of the fun stuff too.
TEAM AND TEAMWORK
A team is defined as a group of people with a common, collective goal. This goal aspect is
very critical in the team. An example of teamwork succeeding over individualism is the
No Name Defence of the Miami Dolphins of the National Football League during the early
years of the franchise. In this team no member stood out above the others. In fact,
although it was arguably the best defences in the league at the time, individual team
members were not well known hence the name No Name Defence.
Teamwork is a fundamental element of total quality because it is organizations not
individuals that produce products and provide services. This consequently makes peak
performance and continual improvements are ground, not individual endeavors.
The Need for Teams
In the above example, the team’s ability was more than the sum of the abilities of
individual members. This is the major reason for advocating teamwork. The rationale for
teamwork therefore is:
➢ Teams satisfy the human social need to belong
➢ It promotes better communication
➢ It multiplies the potential of individual members
➢ It produces positive peer pressure
Team excellence and performance
Teamwork is not a magic cure -all. Poorly run teams can do more damage to an
organizations performance and corresponding competitiveness than having no teams at
all. Thus, excellence is an overriding goal for the organization. This excellence is
attributable to team leaders who possess the following characteristics:
Trust- team leader should build trust among their team members and between
themselves and team members as people will not work well with people they do not trust
Mutual support- individuals depend on each other to get the jobs of the team done.
Members should therefore be supportively willing and able to assist each other in
achieving peak performance.
Accountability- self assessment of team performance is a constant as is continual
improvement
Reinforcement- wise team leaders reinforce team positive behaviors and attitudes by
recognizing and rewarding them.
Building teams and making them work
Part of building a successful team is choosing team members wisely. It involves strategies
for selecting team members, naming officers, creating a mission statement and
developing collegial relations among team members.
Makeup and size of members
Teams should be composed of those people who are most likely to able to satisfy the
team’s mission efficiently and effectively. The appropriate makeup of a team depends in
part on the type of team in question (whether it is departmental improvement, process
improvement, or task force or project oriented). Departmental improvement teams such
as quality circles are made up of employees of a given department. However, process
improvement teams and task forces typically cross departmental lines.
The membership of such teams should be open to any level of employee-management,
supervisors and hourly wage earners. A good rule of thumb is that the greater the mix,
the better.
Choosing team members
When putting together a team, the first step is to identify all potential team members. This
is important because there will often be more potential team members than the number
of members actually needed (12 members maximum). After the list has been compiled,
volunteers can be solicited and actual team members selected from among those who
volunteer, care should be taken to ensure a broad mix.
Developing Collegial Relationships
A team works most effectively when individual team members form positive, mutually
supportive peer relationships. These are collegial relationships, and they can be the
difference between a high-performance team and a mediocre one. The following are
strategies for building collegial relationships among team members:
➢ Help team members understand the importance of honesty, reliability and
trustworthiness
➢ Help team members develop mutual confidence in their work ability
➢ Help them understand pressures to which other team members are subjected
Effective teamwork is built on competence, trust, communication, and mutual support
and resources should be channeled to improve these.
Promoting Diversity in Teams
The workplace today is dominated by women and minorities coming from different
cultures and backgrounds. Consequently, they are likely to have different values and
outlooks. This situation can be good or bad, depending on how it is handled. Dealing with
diversity in a way that makes it a strength is called managing diversity. Diversity in
teamwork can be promoted by applying the following strategies:
Continually assess circumstances: Is communication among diverse team members
positive? Do bias and stereotyping exist among team members? Do minorities and
nonminority with comparable jobs and qualifications earn comparable wages? Factors
that might undermine harmonious teamwork should be anticipated, identified and
handled.
Give team members opportunities to learn: Education and training aimed at
promoting sensitivity to and appreciation of human differences should be provided. Such
training should also help team members overcome the stereotyping assumptions that
society in general seems to promote.
Character traits and team work
Character building is part of a team building program. Participants in each group
contribute to team success or failure. There is a strong correlation between composite
data of a successful group and an unsuccessful group. The traits of teamwork are as
follows.
1. Honesty and integrity-to build trust, team members must be honest to each other.
Honesty is a cornerstone of trust and trust is a cornerstone of teamwork.
2. Selflessness-this character trait means that the people are willing to put the team
interests ahead of their own. A team can move only as fast as the slowest member. This
means that there will always be a member who will get out in front of the pack unless they
rein themselves in.
3. Dependability-people who are dependable consistently do what they are supposed
to do when they are supposed to do it and how they are supposed to do it.
4. Enthusiasm-the concept of team spirit isreal.people that is enthusiastic about their
work typically do it better.
Teams are Coached, Not Bossed
If employees are going to be expected to work together as a team, managers and
supervisors are to realize that teams are coached-they are not bossed.
Bossing in traditional sense involved planning work, giving orders, monitoring programs
and evaluating performances. Coaches on the other hand are facilitators of team
development and continually improved performance. This philosophy is translated into
every day behavior in several ways. These include:
· Coaches give their team a clearly defined character.
· Coaches make team development and team building a constant activity.
· Coaches are mentors.
Mentoring
Good coaches are mentors. This means they establish a helping, caring, nurturing,
relationship, with team members. Developing capabilities of team members, improving
the contribution individuals make to the team and helping team members advance their
career. According to David Cottrell, effective mentors help team members by:
· Developing their job-related competence.
· Building character.
· Teaching them the corporate culture.
· Teaching them how to get things done in the organization.
· Helping them understand other people and their view point.
Mutual Respect
It is important for team members to respect their coach, for the coach to respect his or
her team members, and for the team members to respect each other. Respect is built on
the following factors:
1. Trust made tangible-trust is built by setting the example, sharing information and
explaining personal motives.
2. Appreciation of people as assets-appreciation of people is shown by respecting their
thoughts, feelings, values and fears.
3. Communication that is clear and candid-communication can be made clear and
candid if coaches observe and listen.
Rewarding Team and Individual Performance
Organizations attempt to institutionalize teamwork will fail unless it includes
implementation of an appropriate compensation system: in other words if you want
teamwork to work, make it pay. The most successful compensation systems combine both
individual and team pay.
Components of the Most Successful Compensation System
I. Base individual compensation
II. Individual incentive compensation
III. Team-based incentive compensation.

Structural Inhibitors Of Teamwork

In an article for Quality Digest, Michael Donovan describes some of the structural
inhibitors to effective teamwork that are commonly found in organizations:
I. Unit structure-teams work best in a cross-functional environment as opposed
to the traditional functional-unit environment.
II. Accountability-in traditional organization employees feel accountable to
management. This perception can undermine teamwork.
III. Unit goals-traditional organizations are task oriented and their unit goals reflect
this orientation.
Resolution strategies for team conflicts
Conflict will occur in even in the best teams, even when all team members agree on a goal
they can still disagree on how best to accomplish it. Team leaders and members can apply
these strategies for preventing and resolving team conflicts;
· Plan and work to establish a culture where individuality and dissent are in balance
with teamwork and cooperation.
· Establish clear criteria for deciding when decisions will be made by individuals and
when they will be made by teams
· Don’t allow individuals to build personal empires or to use organization to advance
personal agenda.

QUALITY CIRCLES
Quality circles play a significant role in Total Quality Management (TQM) practices. These
collaborative groups bring employees together to address and solve work-related
problems. In this article, we will explore the concept of quality circles, their benefits, and
how they contribute to overall organizational excellence.
Definition: A quality circle can be defined as a small group of employees from the same
work area or department who voluntarily come together to identify, analyze, and solve
work-related problems. They aim to enhance product quality, productivity, and workplace
processes.
Meaning: Quality circles hold a fundamental principle that those who perform the work
are best positioned to identify and resolve issues. By tapping into the collective
knowledge and experience of employees, organizations can harness valuable insights and
drive positive change.
Quality Circle in TQM
it is an integral part of Total Quality Management (TQM). TQM emphasizes continuous
improvement and involves all employees in the organization. Qc serves as a platform for
employees to actively contribute to the TQM philosophy by engaging in problem-solving
and quality-enhancement activities.
The 12 Steps of Quality Circle
To ensure a systematic approach, quality circles typically follow a set of 12 steps:
Select a problem: The quality circle identifies a specific problem or issue that needs
attention and improvement. It could be related to quality, productivity, safety, or any other
aspect of the work process.
Collect data and analyze the problem: The quality circle gathers relevant data and
information about the identified problem. This may involve conducting observations,
measurements, surveys, or analyzing historical data. The data is analyzed to gain a deeper
understanding of the problem's root causes.
Identify the root cause: Based on the data analysis, the quality circle determines the
underlying root causes of the problem. It aims to identify the factors or conditions that
contribute to the occurrence of the problem.
Generate possible solutions: The quality circle brainstorms and generates a variety of
potential solutions to address the identified problem. All ideas and suggestions are
welcomed and considered without judgment.
Evaluate and select the best solution: The quality circle evaluates the generated
solutions based on their feasibility, effectiveness, and potential impact. The circle
members discuss and collectively decide on the best solution to implement.
Develop an action plan: Once the best solution is chosen, the quality circle develops a
detailed action plan. The plan outlines the steps, responsibilities, resources, and timeline
required to implement the solution effectively.
Implement the plan: The quality circle puts the action plan into action. The members
work together to execute the planned activities, making sure to follow the established
timeline and allocate resources accordingly.
Monitor the results: During the implementation phase, the quality circle monitors and
tracks the progress and results of the implemented solution. This allows them to assess
whether the desired outcomes are being achieved and identify any deviations or issues.
Assess the effectiveness of the solution: Once the solution has been implemented and
sufficient time has passed, the quality circle assesses its effectiveness. They evaluate
whether the problem has been resolved, improved, or eliminated, and gather feedback
from relevant stakeholders.
Standardize the process: If the implemented solution proves to be effective, the quality
circle standardizes the new process or procedure. This ensures that the improved
practices are consistently followed in the future, minimizing the chances of the problem
reoccurring.
Celebrate success: The quality circle celebrates the successful implementation of the
solution and the positive impact it has brought to the organization. Recognizing and
appreciating the efforts of the members helps motivate and reinforce their commitment
to continuous improvement.
Review and learn from the experience: After completing the project, the team reflects
on the entire process. They review what worked well, what challenges they encountered,
and what lessons they learned. This feedback is used to improve future quality circle
initiatives and refine their problem-solving skills.
These steps provide a structured framework for Qc activities and facilitate a logical
problem-solving approach.
The Concept of Quality Circle
It operates based on certain principles and concepts:
Participation: it encourages active participation and involvement from all members.
Empowerment: Members are empowered to take ownership of problem-solving and
improvement initiatives.
Collaboration: it fosters teamwork, cooperation, and knowledge sharing among
employees.
Continuous improvement: The primary goal of quality circles is to achieve continuous
improvement in processes, quality, and productivity.
Example of a Quality Circle
To better understand how quality circles work, let's consider an example from a
manufacturing company. it is comprised of operators, technicians, and supervisors in the
production department identifies recurring issues related to product defects. They gather
data, analyze the root cause, and propose process modifications to address the problem.
Through collaboration and implementation of their suggested solutions, the qc
successfully reduces defects and improves product quality.
Structure of a Quality Circle
A typical qc consists of:
Facilitator: Guides the group discussions and ensures effective problem-solving.
Leader: Takes responsibility for coordinating and organizing its activities.
Members: Employees from the same work area who actively participate in
problem-solving initiatives.
This structure promotes shared responsibility, accountability, and collective decision-
making.
Benefits of Quality Circle
it is also known as participatory management groups or problem-solving teams, offering
numerous benefits to organizations. Here are some key advantages of implementing these
collaborative initiatives:
Employee empowerment: Participatory management groups empower employees by
involving them in problem-solving and decision-making processes. It gives them a sense
of ownership and responsibility for improving their work environment and processes.
Enhanced problem-solving: By bringing together employees from different levels and
departments, these initiatives facilitate collective problem-solving. This diversity of
perspectives and knowledge leads to more comprehensive problem-solving and
innovative solutions.
Increased employee engagement: Participatory management groups foster a culture of
active participation and collaboration. They provide a platform for employees to voice
their ideas, concerns, and suggestions, which increases their engagement and motivation
at work.
Improved quality and productivity: These collaborative initiatives focus on identifying
and addressing quality-related issues, leading to improved product or service quality. By
involving employees in the process, organizations can tap into their expertise and find
ways to enhance productivity and efficiency.
Cost savings: Participatory management groups aim to eliminate waste, reduce errors,
and optimize processes. By addressing problems at their root causes, organizations can
minimize defects, rework, and inefficiencies, resulting in significant cost savings.
Continuous improvement: These collaborative initiatives promote a culture of
continuous improvement. They encourage employees to constantly seek ways to enhance
processes, products, and services. This proactive approach helps organizations stay
competitive and adapt to changing market conditions.
Enhanced communication and teamwork: Participatory management groups foster
open communication and teamwork among employees. They create opportunities for
cross-functional collaboration, breaking down silos and improving coordination between
departments.
Skill development: Participating in these initiatives allows employees to develop a range
of skills. They gain experience in problem-solving, data analysis, teamwork,
communication, and leadership, which can benefit both their personal and professional
growth.
Increased morale and job satisfaction: Participatory management groups provide
employees with a platform to contribute meaningfully to their work environment. This
recognition and involvement contribute to higher morale, job satisfaction, and overall
employee well-being.
Organizational learning: These collaborative initiatives promote a culture of learning
and knowledge sharing. Through the continuous improvement process, organizations
accumulate valuable insights and best practices that can be applied to future projects and
initiatives.

RECOGNITION AND REWARD

Recognition - Meaning:
Recognition is a process whereby management shows acknowledgement of an
employee’s outstanding performance. Recognition is a form of employee positive
motivation. Recognition of employees is highly essential as people find themselves in a
accepted and winning role. To sustain employee’s interest and to propel them towards
continuous improvement, it is essential to recognize the people. This acknowledgement
may be of financial, psychological or both in nature.
Ways to recognize people
Send letters to improve team members when they establish a team thanking them for
their involvement.
1. Develop a behind the scenes awards specifically for those whose actions are not
usually in the lime light, make sure such awards are in the lime light.
2. Feature the quality team of the month and put their picture in a prominent place.
3. Honor peers who have helped you by recognizing them at your staff meetings.
4. Let people attend meetings, committees etc; in your place when you are not available.
5. Involve teams with external customers and suppliers, sending them on appropriate
visits to solve problems and look for opportunities.
6. Invite a team for coffee or lunch at any time, not necessarily when you need them for
something.
7. Create a visibility wall to display information, posters, and pictures, thanking
individual employees and their teams, and describing their contributions.
8. When you are discussing an individual or group ideas with other people, peers, or
higher management make sure that you give them credit.
Why Should One Recognise People
1. improve employees morale
2. show the company’s appreciation for better performance
3. create satisfied workplace
4. Create highly motivated workplace.
5. Reinforce behavioral patterns.
Reward - Meaning:
Reward is a tangible one, such as increased salaries, commissions, cash bonus, gain
sharing, etc; to promote desirable behavior.
Types of Rewards:
1. Intrinsic rewards
2. Extrinsic rewards
Intrinsic rewards are related to feelings of accomplishment of self-worth.
Intrinsic Rewards
1. Non-monetary forms of recognition to acknowledge achievement of quality
improvement goals.
2. Celebration to acknowledge achievement of quality improvement goals.
3. Regular expressions of appreciation by managers and leaders to employees to
acknowledge achievement of quality improvement goals.
4. 360-degree performance appraisals feedback from co-workers subordinates to
customers is incorporated into performance appraisals.
Extrinsic Rewards:
1. Profit sharing
2. Gain sharing
3. Employment security
4. Compensation time
5. Individual based performance systems
Recognition is a process by which management shows acknowledgement of an
employee’s outstanding performance.
Various ways for Recognition and Rewards
1. Recognition can be expressed using verbal and written praise.
2. Rewards may be in the form of certificates and plaques.
3. Reward is normally in the form of cinema tickets, dinner for family etc.
4. The financial compensation (for recognition) can be paid in terms of increased
salaries, commissions, gain sharing etc.
5. The efforts of employees can be recognized by promotions, special job assignments
etc.
6. A letter of appreciation from the CEO or the Top Management will increase the
employee’s involvement.
7. Reward may be delayed but recognition should be in a timely basis.
8. Rewards should be appropriate to the improvement level.
9. People like to be recognized than any reward.
10.Special forms of recognition include pictures on the bulletin board, articles in news
letters, letter to families etc.
11.Supervisors can give on-the-spot praise for a job which is done well.
Effects of Recognition and Reward System
1. Recognition and reward go together for letting people know that they are valuable
members for the organization.
2. Employee involvement can be achieved by recognition and reward system.
3. Recognition and reward system reveals that the organization considers quality and
productivity as important.
4. It provides the organization an opportunity to thank high achievers.
5. It provides employees a specific goal to achieve.
6. It motivates employees to improve the process.
7. It increases the morale of the workers.

PERFORMANCE APPRAISAL
Performance appraisal is defined as a process that systematically measures an employee’s
personality and performance, usually by managers or immediate supervisors, against
predefined attributes like skillset, knowledge about the role, technical know-how,
attitude, punctuality, and so on.
Performance appraisal has many names across organizations. Some call it performance
evaluation, and some prefer performance review, merit rating, annual performance
review, etc.
This process is carried out to identify the inherent qualities of an employee and the
abilities and level of competency of an employee for their future growth and development
and that of the organization they are associated with. It aims at ascertaining the value of
an employee and his/her offering to the organizational performance.
Performance appraisals help managers and supervisors place the right employee to do
the right job, depending on the skill set they possess. Without an ounce of doubt, every
organization needs a robust performance appraisal process.
There are various methods that managers and supervisors use to evaluate employees
based on objective and subjective factors. However, it can get a bit tricky, but to effectively
evaluate an employee, both factors are essential.
Objectives of performance appraisal
The following are the objectives for conducting performance appraisals year after year:
Employee promotion: This is an essential first step towards promoting an employee
based on subjective and objective factors- performance and competency.
Employee needs: To identify the training and development needs of an employee.
Employee Confirmation: To provide confirmation to those employees who were
recently hired and are on their probation period.
Making decisions about promotions and compensation: To make a concrete decision,
what should be the percentage of a hike in the salary of an employee based on the work
done by them?
Improving communication: To encourage a proper feedback system between the
manager and employees.
Scope of improvement: To help employees understand where they stand in the current
year and what is the scope of improvement.
Performance appraisal process
The performance appraisal process is a key part of how an organization manages the
performance and growth of its employees. It entails assessing an employee’s job
performance and providing feedback on their strengths and weaknesses in order to
improve employee performance evaluation and achieve organizational goals. Here, we
will learn the key steps of the performance appraisal process:
Step 1: Employee Evaluation: In most organizations, the employee performance
appraisal process means evaluating an employee every 6 months or one year for the
period an employee has continually worked with the organization. In modern times, the
Human Resources department sends out an employee survey for them to fill out to collect
data related to their engagement and satisfaction levels.
Step 2: Performance quality evaluation: The employee’s immediate manager or
supervisor will then evaluate the quality of the employee’s performance based on the
work done in the previous year and then meet face-to-face to discuss the facts and figures.
Step 3: Actionable insight: The feedback received from the survey can be kept
anonymous. This feedback can be analyzed in real-time by using QuestionPro’s Workforce
platform, that measures, analyzes, and activates data to get actionable insights.
For probationary employees, the probation period usually lasts between three to six
months. Their evaluation is based on whether they have come at pace with the work and
culture of the organization and if they are ready to take up more responsibilities.
Methods of Performance Appraisals
Performance appraisals come in many forms. Managers and human resources staff
responsible for these appraisals need to choose the best methods based on the size of
their organization and what sorts of responsibilities the employees fulfill.
1. 720-Degree Feedback: You could say that this method doubles what you would get
from the 360-degree feedback! The 720-degree feedback method collects information not
only from within the organization but also from the outside, from customers, investors,
suppliers, and other financial-related groups.
2. The Assessment Center Method: This method consists of exercises conducted at the
company's designated assessment center, including computer simulations, discussions,
role-playing, and other methods. Employees are evaluated based on communication
skills, confidence, emotional intelligence, mental alertness, and administrative abilities.
The rater observes the proceedings and then evaluates the employee's performance at
the end.
3. Behaviorally Anchored Rating Scale (BARS): This appraisal measures the
employee’s performance by comparing it with specific established behavior examples.
Each example has a rating to help collect the data.
4. Checklist Method: This simple method consists of a checklist with a series of questions
that have yes/no answers for different traits.
5. Critical Incidents Method: Critical incidents could be good or bad. In either case, the
supervisor takes the employee’s critical behavior into account.
6. Customer/Client Reviews: This method fits best for employees who offer goods and
services to customers. The manager asks clients and customers for feedback, especially
how they perceive the employee and, by extension, the business.
7. Field Review Method: An HR department or corporate office representative conducts
the employee's performance evaluation.
8. Forced Choice Method: This method is usually a series of prepared True/False
questions.
9. General Performance Appraisal: This method involves continuous interaction
between the manager and the employee, including setting goals and seeing how they are
met.
10. Human Resource Accounting Method: Alternately called the “accounting method”
or “cost accounting method,” this method looks at the monetary value the employee
brings to the company. It also includes the company’s cost to retain the employee.
11. Management By Objective (MBO): This process involves the employee and manager
working as a team to identify goals for the former to work on. Once the goals are
established, both parties discuss the progress the employee is making to meet those goals.
This process concludes with the manager evaluating whether the employee achieved the
goal.
12. Performance Tests and Observations: This method consists of an oral test that
measures employees' skills and knowledge in their respective fields. Sometimes, the
tester poses a challenge to the employee and has them demonstrate their skills in solving
the problem.
13. Project Evaluation Review: This method involves appraising team members at the
end of every project, not the end of the business year.
14. Rating Scales: These ratings measure dependability, initiative, attitude, etc., ranging
from Excellent to Poor or some similar scale. These results are used to calculate the
employee's overall performance.

CONTINUOUS PROCESS IMPROVEMENT

Definition: Continuous improvement is the act of continually looking to improve upon a
process, product, or service through small incremental steps. It is a organized method to
continuous identify, define, implement, measure, and analyze the effectiveness of change.
The Continuous Improvement Process (CIP) is an ongoing effort to enhance the quality of
products, services, or processes through small changes. It involves implementing minor
iterative modifications that accumulate into substantial outcomes by intentionally
examining existing procedures. The six-step systematic approach entails planning,
sequencing, and implementing improvement activities based on data.
Purpose of a Continuous Improvement Process (CIP)
The purpose of the continuous improvement process is to improve the performance,
efficiency, and effectiveness of a company over time. Finding, studying, and putting into
action ways to make processes, products, or services better in order to boost quality,
productivity, and customer satisfaction is what this iterative method is all about.
Benefits of a Continuous Improvement Process (CIP)
Implementing a Continuous Improvement Process in an organization should be standard
practice now. Studies have shown the main benefits of a CIP are:
Increase productivity: Increases productivity by finding and getting rid of waste,
improving processes, and making the best use of resources, which means more work can
be done with the same or fewer resources.
Better teamwork and morale: create an environment where people are willing to work
together and take responsibility. This makes everyone feel valued for their part in
improving processes and reaching shared goals, which leads to better teamwork and
higher morale.
Greater agility: makes businesses more flexible and responsive, which helps them
respond quickly to changing situations. This flexibility lets them quickly adapt to changes
in the market and in what customers want.
Less waste: Using methods for ongoing improvement, like Lean principles, can help
reduce waste by finding and getting rid of activities that don’t add value, cutting down on
unnecessary inventory, and making the best use of resources, which leads to better
resource utilization.
More efficiency: The goal of continuous improvement is to improve and streamline
processes, which makes them more efficient by eliminating bottlenecks, making routines
smoother, and making operations run more smoothly overall.
Increase customer satisfaction: makes sure that goods and services meet or go beyond
what customers expect by constantly improving processes and quickly fixing problems.
This leads to better quality, dependability, and overall customer satisfaction.
Increase in profit: has a good effect on the bottom line by increasing customer
satisfaction, making the business more productive, and reducing waste. This leads to
higher profits and long-term business growth.
The Six (6) Steps of the Continuous Improvement Process (CIP): Organizations use
the dynamic and methodical continuous improvement process to improve productivity,
output, and overall performance. The fundamental components of the approach are the
Six Steps, a methodical framework created to lead teams through the process of finding,
evaluating, and introducing process changes. Most of the CIP methods follow the six basic
steps below in their execution.
Step 1: Identify Improvement Opportunity: Select the appropriate process for
improvement.
Evaluate Process:
Select a challenge/problem
Step 2: Analyze: Identify and verify the root cause(s).
Step 3: Take Action: Plan and implement actions that correct the root cause(s).
Step 4: Study Results: Confirm the actions taken to achieve the target.
Step 5: Standardize Solution: Ensure the improved level of performance is maintained.
Step 6: Plan for the Future:
Plan what is to be done with any remaining problems
Evaluate the team’s effectiveness
Set a target for improvement

PDCA CYCLE
PDCA or the Deming cycle is a management methodology that aims to continually
improve processes. This cycle is based on four stages: plan, do, check, and act.
To adapt to market changes, improve efficiency, boost productivity, and meet the needs of
your customers, having a method is required. Already known among managers for about
a century, the PDCA cycle is still widely used, and can strongly contribute to optimizing
your company's processes.
Want to learn more about the stages of this cycle and how it can be applied in your
business? Read on to find out!
What is the PDCA cycle?
Accordingly, the concept of PDCA is related to a process of continuous improvement that
must be applied in these four stages, performed cyclically, with the aim of making
products or processes better and faster.
Is PDCA a tool?
Also called the Deming Cycle or Shewhart Cycle, PDCA is a methodology that can be
applied in any business process (or even in personal life) that needs ongoing
improvement.
The PDCA method was developed in the ‘20s and gained visibility in the ‘50s, when
William Edwards Deming, the father of quality management, implemented the logic of
planning, executing, analyzing, and enhancing a large project: to rebuild Japanese
industrial infrastructure after World War II.
How did PDCA originate?
What we know today as the PDCA Cycle began to be developed in the 1920s. At that time,
engineer Walter Shewhart created Statistical Process Control (SPC), a quality tool to
prevent and detect defects.
In 1950, this type of control became more popular. American professor and
mathematician William Deming, considered a master in quality management, improved
SPC.
That's why PDCA is also called the Shewhart Method or the Deming Method, in honor of
its originators.
The PDCA methodology was initially applied to quality management but was soon
expanded. Today, it is used for continuous improvement in a variety of organized
processes, promoting continuous improvement in companies of all sectors.
What are the stages of the PDCA cycle?
But how do you create a PDCA step by step? The PDCA cycle includes this sequence of
stages that must be followed without omitting any:
P: Plan
The first step when trying to optimize a process and improve a product or service is to
plan. The company's strategic goals, as well as the customer's expectations, must be
aligned in order to fulfill the next stages.
First, it's necessary to conduct a diagnosis to identify existing problems, define priorities
of what needs to be improved, or even detect new opportunities.
After defining the goal, you must break it down into realistic and tangible objectives. At
this point, it's important to survey data and information to define the scope of work.
Once the team gets together, it's time to put pen to paper: create an action plan with the
tasks that must be performed in order to achieve objectives. Define deadlines, a schedule,
and the people responsible.
You must also define key performance indicators (KPIs), which are metrics to be analysed
in the next stage.
D: Do
Now it's time to put your plan in action. It's important for the team to receive particular
training to execute what's laid out in the plan.
During execution, you should also try to collect data so you can monitor processes and
measure results. Record them whether they're positive or negative.
C: Check
Now, analyze the results. In this stage, having objective and quantitative parameters are
needed in order to properly assess process improvement and quality standards and to
compare them to previous cycles.
In this stage, you can identify problems or failures in the process, which can be adjusted
later.
A: Act
As well, the “A” in PDCA also stands for “adjust”, and it represents the actions to be
implemented to correct the failures detected in the previous stage. At this point, you can
point out solutions to problems and then amend planning according to the new results.
In this stage, there are two different outcomes:
If the expected result was achieved, it can serve as a reference for other processes and
departments, or other units of the company, for example.
If the result was below expectations, it should be analyzed in order to find new solutions.
It's important to mention that the market is very dynamic, technological innovations are
created all the time, and it's difficult to consider a pattern that worked to be definitive.
Even if a strategy worked, it's likely it can be improved going through the PDCA cycle
again.
Objectives of PDCA
The objective of PDCA is to simplify management routines and facilitate the
implementation of positive changes. To do this, it works based on some key aspects:
Problem-solving: The PDCA cycle can be applied to solve any type of problem in a
company, not only in businesses but also in personal contexts.
Its four-stage execution model allows for planning a solution that is continuously checked,
minimizing the impacts of the initial problem.
Decision-making: This working methodology is based on concrete information and
continuous data checking, which improves decision-making. Thus, business directions
are defined based on comprehensive and relevant analyses.
Moreover, managers are always alert to potential problems, taking preventive action.
Innovation: PDCA facilitates the organization of new ideas, allowing for the
implementation of new and innovative solutions to everyday problems.
Flexibility and agility: Through PDCA, companies can adapt more quickly to the constant
changes in the market, developing a more flexible and dynamic profile - essential for
contemporary businesses.
Quality improvement: PDCA is directly related to Quality Management, promoting
continuous improvement in all organization processes.
When should you use PDCA?
This method can be used in any process to put your company always in a cycle of
continuous improvement in order to implement standards and increase efficiency.
The more you repeat the cycle, the more you increase gains in quality and improve
customer service, increasing your advantage.
You can use PDCA for:
Managing routines: standardize your company's day-to-day processes and define a
quality level for activities.
Managing improvements: ensures a certain quality level, and always seeks to adapt to
external instabilities and find ways to stand out in the market.

5S
There can be no TQM without 5-S. A dirty factory cannot produce quality products. Clutter
hides problems. A neat workplace promotes easy discovery of abnormalities.
The 5S Method is a standardized process that when properly implemented creates and
maintains an organized, safe, clean and efficient workplace. Improved visual controls are
implemented as part of 5S to make any process non-conformance’s obvious and easily
detectable. 5S is often one element of a larger Lean initiative and promotes continuous
improvement. The 5S list is as follows:
Seiri / Sort: Separating of the essential from the nonessential items
Seiton / Straighten: Organizing the essential materials where everything has its place
Seiso / Shine: Cleaning the work area
Seiketsu / Standardize: Establishing a system to maintain and make 5S a habit
Shitsuke / Sustain: Establishing a safe and sanitary work environment (Safety)
The 5S Principles are recognized in many industries as effective tools for improving
workplace organization, reducing waste and increasing efficiency. Organizations should
be careful to not allow the 5S Principles to become viewed as the whole of the company’s
improvement efforts. Otherwise it could become the end goal of your company’s
improvement process instead of a key part of a larger continuous improvement journey.
The greatest benefit from using 5S is realized when it is part of a larger initiative and the
entire organization has adopted its principles. 5S is more than a system; it is a business
philosophy and should be integrated into the organization’s culture.
Why Implement 5S?
There are many benefits to implementing the 5S Methods into a work area on the
production line or in the business office. To not only survive but thrive in business today,
cost must be controlled and waste must be avoided or eliminated. The 5S steps, when
implemented properly, can identify and reduce many forms of waste in any process or
workstation. An organized work area reduces excessive motion and wasted time looking
for the right tool. The visual aspect of the 5S Methodology is also very effective. When
everything has a place, it is easier to spot something missing or misplaced. A clean work
area helps draw attention to possible problems or safety hazards. A clean floor helps spot
any leaks or spills could indicate machine maintenance and prevent slips and falls.
Furthermore, encouraging people to watch for and address problems can result in a
positive change to an organizations culture. Therefore, the 5S Principles implemented as
part of a larger Lean initiative or as a standalone tool can reduce waste, improve quality,
promote safety and drive continuous improvement.
How to Implement 5S
Sort: The first step in 5S is sorting. During sorting the team should go through all items
in the work area including any tools, supplies, bulk storage parts, etc. The 5S team leader
should review and evaluate every item with the group. This will help to identify which
items are essential for getting the job done effectively and efficiently. If the item is
essential for everyday operations it should be tagged and cataloged. If the item is not
essential, determine how often it is used in the performance of work in that area. If it is a
bulk item, decide the proper amount to be kept in the area and move the remaining
quantity to storage. Excess inventory is one form of waste and should be eliminated
during the 5S activities.
Straighten: Designate a place for all items that remain in the work area. Put all items in
their designated location. An often-referenced quote is “A place for everything and
everything in its place”. During the straighten step, look for ways to reduce or eliminate
waste. One form of waste in a process is unnecessary operator motion or movement.
Therefore, frequently used tools and supplies should be stored in the immediate work
area close to the operator. One effective method commonly used to avoid wasted time
searching for the correct tool is constructing shadow boards for all essential tools. Items
that are not used as often should be stored based on their frequency of use. All parts bins
should be properly labeled. The label should include part number, part description,
storage location and the recommended min / max quantities. A properly straightened
work area allows the operator to quickly review and verify that they have everything they
need to successfully perform their task at hand.
Shine: The next step is to clean everything in the area and remove any trash. To be
effective we must keep the area and any related equipment clean. Dirty process
equipment can actually increase the potential for process variability and lead to
equipment failure. Lost time due to equipment failure is considered waste and non-value-
added time. A dirty area can also contribute to safety issues that have the potential to
cause a worker to be injured. Operators should clean their areas at the end of each shift.
By doing this they will likely notice anything out of the ordinary such as oil or lubricant
leaks, worn lift cables, burnt out bulbs, dirty sensors, etc. The purpose is to reduce waste
and improve operator safety and efficiency.
Standardize: The fourth step has been called the most important step in the 5S Process.
In this step we must develop the standards for the 5S system. They will be the standards
by which the previous 5S steps are measured and maintained. In this step, work
instructions, checklists, standard work and other documentation are developed. Without
work instructions or standard work, operators tend to gradually just do things their own
way instead of what was determined by the team. The use of visual management is very
valuable in this phase. Color coding and standard colors for the surroundings are
sometimes used. Photos of the area in the standard 5S configuration are often posted for
easier identification of non-conformances. The operators are trained to detect non-
conforming conditions and correct them immediately. Schedules should also be
developed for regular maintenance activities in each area.
Sustain: This step in the 5S Process can sometimes become the most challenging of all
the five steps. Sustaining is the continuation of the Sort, Straighten, Shine and Standardize
steps. It is the most important step in that it addresses the need to perform 5S on a
consistent and systematic basis. During this step a standard audit system is usually
developed and implemented. The goal of the sustain step is to ingrain the 5S process into
the company culture. The company must strive to make 5S a way of life so the benefits
gained through the exercise can be maintained. 5S is not a one-time exercise. Following
the 5S Process must become a habit.

KAIZEN
Kaizen is a Japanese term that translates to “improvement” or “change for the better”. It
is a philosophy and a set of practices that focus on continuous improvement of processes,
products and services within an organization. The goal of Kaizen is to make small,
incremental improvements on a regular basis, rather than making major changes
infrequently.

How to get started with Kaizen in quality management

Here are some pointers to help you get started with Kaizen in quality management −
Identify the areas that need improvement − Examine your processes and products to
identify areas for improvement. Customer feedback, employee suggestions, or data
analysis can all be used to accomplish this.
Set goals − Once you've identified the areas that require improvement, set goals for what
you want to accomplish. Ensure that the objectives are specific, measurable, achievable,
relevant, and time-bound (SMART).
Form a Kaizen team − Create a team of employees who will be in charge of implementing
Kaizen. This team should include representatives from various departments who have an
interes in the process or product.
Analyze the process − Analyze the process to identify the underlying causes of problems.
This can be accomplished with tools such as flowcharts, cause-and-effect diagrams, and
Pareto charts.
Implement improvements − Once you've identified the root causes of problems, make
changes to address them. These enhancements can take the form of small, incremental
changes or larger process changes.
Monitor progress − Progress should be tracked to ensure that the improvements are
effective. Track the impact of the changes with data and adjust the process as needed.
Continuously improve − Finally, keep in mind that Kaizen is a process that is ongoing.
Always strive to improve your processes and products, and involve your employees in the
process. By doing so, you can foster a culture of continuous improvement that will aid
your organization's long-term ability to compete.

SUPPLIER PARTNERSHIP
Partnering is a 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 the risks and rewards of the relationship. The relationship
between customer and
supplier should be based upon trust, dedication to common goals and objectives, and an
understanding of each party’s expectations and values.
Benefits of Partnering
The benefits of partnering include:
(i) Improved quality;
(ii) Reduced cost;
(iii) Increased productivity;
(iv) Increased efficiency;
(v) Increased market share;
(vi) Increased opportunity for innovation; and
(vii) Continuous improvement of products / services.
Key Elements to Partnering
The three important elements to achieve the customer / supplier partnering relationship
are:
1. Long-term commitment: Long-term commitment provides both customer and
supplier the much-needed environment to achieve the planned objectives. Because to set
up and solve the problem of continuous improvement, both parties may require the
sufficient time.
2. Trust: Mutual trust between two parties forms the basis for a strong working
relationship. Trust enables the partners to effectively combine their resources and
knowledge. It results in a ‘win-win’ situation for both partners.
3. Shared vision: Both the customers and suppliers have the common goal i.e., to satisfy
the end user. In order to ensure this goal, both particles should share and understand
their goals and objectives.
Three types of supplier sourcing are:
Sole sourcing;
Multiple sourcing, and
Single sourcing.
1. Sole Sourcing: Sole sourcing is the use of only one supplier for the organization. The
organization does not have any choice. It is forced to use only one supplier. This forced
situation is because of the following factors: patents, technical specifications, raw
material location, only one organization producing the item, etc.
2. Multiple Sourcing: Multiple sourcing is the use of two or more suppliers for an item.
The basic concept of multiple sourcing is that competition will result in better quality,
lower costs, and better service. (The selection of suppliers from various alternatives is
based on their performance in terms of prices, quality and delivery.
3. Single Sourcing: Single sourcing is the use of one supplier for an item when several
sources are available. It leads to long-term partnering relationship. The suppliers should
be treated as partners to achieve the same quality level as attained within the
organization.
The following forces need Supplier Partnership to improve quality, reduce costs and
increase market share.
➢ Deming Philosophy (Deming’s 4th point)
➢ Just-in-time
➢ Continuous process improvement
Customer – Supplier Relations
Dr. Kaoru Ishikawa has given ten principles of customer-supplier relations. They are
1. Both the customer and supplier are fully responsible for the control of quality.
2. Both the customer and supplier should be independent of each other.
3. The customer is responsible for providing the supplier with clear and sufficient
requirements so that the customer can know precisely what to produce.
4. Both the customer and supplier should enter into a non-adversarial contract.
5. The supplier is responsible for providing the quality that will satisfy the customer.
6. Both the customer and supplier should decide the method to evaluate the quality of
the product or services.
7. Both the customer and supplier should establish in the contract the method by which
they can reach an amicable settlement in case of any dispute.
8. Both the customers and supplier should continually exchange information.
9. Both the customer and supplier should perform business activities.
10. Both the customer and supplier should have the best interest of the end user in mind.

PARTNERING
Partnering is a relationship between two or more parties based upon trust, dedication to
common goals.
The benefits of partnering are
✓ Improved quality
✓ Increased efficiency
✓ Lower cost
✓ Increased opportunity for innovation
✓ Continuous improvement
The three key elements to a partnership relationship are
➢ Long term commitment
➢ Trust
➢ Shared Vision
Sourcing: The three types of sourcing are
Sole sourcing
Multiple sourcing
Single sourcing
What is Supplier Partnering?
Partnering is a 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 the risks and rewards of the relationship. The relationship
between customer and supplier should be based upon trust, dedication to common goals
and objectives, and an understanding of each party’s expectations and values.
Benefits of Partnering
✓ The benefits of partnering include:
✓ Improved quality;
✓ Reduced cost;
✓ Increased productivity;
✓ Increased efficiency;
✓ Increased market share;
✓ Increased opportunity for innovation; and
✓ Continuous improvement of products / services.

SUPPLIER SELECTION
The suppliers should be selected with the following ten conditions
1. The supplier should understand clearly the management philosophy of the
organization.
2. The supplier should have stable management system.
3. The supplier should maintain high technical standards.
4. The supplier should provide the raw materials and parts which meet quality
specifications required by the purchaser.
5. The supplier should have the required capability in terms of production.
6. The supplier should not leak out the corporate secrets.
7. The supplier should quote right price and should meet the delivery schedule. The
supplier should be accessible with respect to transportation and communication.
8. The supplier should be sincere in implementing the contract provisions.
9. The supplier should have an effective quality system such as ISO / QS 9000.
10.The supplier should be renowned for customer satisfaction.
Supplier Certification
A certified supplier is one which, after extensive investigation, is found to supply material
of such quality that is not necessary to perform routine testing.
The Eight criteria for supplier certification are
1. No product related lot rejections for at least 1 year.
2. No non-product related rejections for at least 6 months.
3. No production related negative incidents for at least 6 months.
4. Should have passed a recent on-site quality system evaluation.
5. Having a fully agreed specification.
6. Fully documented process and quality system.
7. Timely copies of inspection and test data.
8. Process that is stable and in control

SUPPLIER RATING
Supplier Rating is done
➢ To obtain an overall rating of supplier performance.
➢ To communicate with suppliers regarding their performance.
➢ To provide each supplier with a detailed and true record of problems for corrective
action.
➢ To enhance the relationship between the buyer and the supplier.

Relationship Development
For establishment of supplier relationship, the following are necessary.
✓ Partnering
✓ Supplier selection
✓ Principles of customer / supplier relations
✓ Certification
✓ Periodic rating
For relationship development, the following are necessary.
(a) Inspection
100% inspection
Sampling
Audit
Identity check
(b) Training
(c) Teams
(d) Recognition and Reward