Allama Iqbal Open University.

Submitted By: Rehman Shoukat

Submitted To: Muhammad Irfan

Roll #: 565568

Assignment # 2
Total Quality Management
What is Production Management? Meaning

Production management means planning, organizing, directing and controlling

of production activities.
Production management deals with converting raw materials into finished goods
or products. It brings together the 6M's i.e. men, money, machines, materials,
methods and markets to satisfy the wants of the people.

"Production management deals with decision-making related to

production processes so that the resulting goods or service is
produced according to specification, in the amount and by the
schedule demanded and at minimum cost."
Production management also deals with decision-making regarding the quality, quantity, cost,
etc., of production. It applies management principles to production.
Production management is a part of business management. It is also called "Production
Function." Production management is slowly being replaced by operations management.
The main objective of production management is to produce goods and services of the right
quality, right quantity, at the right time and at minimum cost. It also tries to improve the efficiency.
An efficient organization can face competition effectively. Production management ensures full or
optimum utilization of available production capacity
Importance of Production Management
The importance of production management to the business firm:
Accomplishment of firm's objectives: Production management helps the business firm to achieve
all its objectives. It produces products, which satisfy the customers' needs and wants. So, the firm
will increase its sales. This will help it to achieve its objectives.
Reputation, Goodwill and Image: Production management helps the firm to satisfy its customers.
This increases the firm’s reputation, goodwill and image. A good image helps the firm to expand
and grow.
Helps to introduce new products: Production management helps to introduce new products in the
market. It conducts Research and development (R&D). This helps the firm to develop newer and
better quality products. These products are successful in the market because they give full
satisfaction to the customers.
Supports other functional areas : Production management supports other functional areas in an
organization, such as marketing, finance, and personnel. The marketing department will find it
easier to sell good-quality products, and the finance department will get more funds due to
increase in sales. It will also get more loans and share capital for expansion and modernisation.
The personnel department will be able to manage the human resources effectively due to the
better performance of the production department.
Helps to face competition: Production management helps the firm to face competition in the
market. This is because production management produces products of right quantity, right quality,
right price and at the right time. These products are delivered to the customers as per their
requirements.
Optimum utilization of resources : Production management facilitates optimum utilization of
resources such as manpower, machines, etc. So, the firm can meet its capacity utilization
objective. This will bring higher returns to the organization.
Minimizes cost of production : Production management helps to minimize the cost of production. It
tries to maximize the output and minimize the inputs. This helps the firm to achieve its cost
reduction and efficiency objective.
Expansion of the firm : The Production management helps the firm to expand and grow. This is
because it tries to improve quality and reduce costs. This helps the firm to earn higher profits.
These profits help the firm to expand and grow.
The importance of production management to customers and society:
Higher standard of living : Production management conducts continuous research and
development (R&D). So they produce new and better varieties of products. People use these
products and enjoy a higher standard of living.
Generates employment : Production activities create many different job opportunities in the
country, either directly or indirectly. Direct employment is generated in the production area, and
indirect employment is generated in the supporting areas such as marketing, finance, customer
support, etc.
Improves quality and reduces cost : Production management improves the quality of the products
because of research and development. Because of large-scale production, there are economies
of large scale. This brings down the cost of production. So, consumer prices also reduce.
Spread effect : Because of production, other sectors also expand. Companies making spare parts
will expand. The service sector such as banking, transport, communication, insurance, BPO, etc.
also expand. This spread effect offers more job opportunities and boosts economy.
Creates utility : Production creates Form Utility. Consumers can get form utility in the shape, size
and designs of the product. Production also creates time utility, because goods are available
whenever consumers need it.
Boosts economy : Production management ensures optimum utilisation of resources and effective
production of goods and services. This leads to speedy economic growth and well-being of the
nation.

Meaning of Production Management:

Production Management refers to the application of management principles to the production
function in a factory. In other words, production management involves application of planning,
organizing, directing and controlling the production process.
The application of management to the field of production has been the result of at least three
developments:
(i) First is the development of factory system of production. Until the emergence of the concept of
manufacturing, there was no such thing as management as we know it. It is true that people
operated business of one type or another, but for the most part, these people were owners of
business and did not regard themselves as managers as well,
(ii) Essentially stems from the first, namely, the development of the large corporation with many
owners and the necessity to hire people to operate the business,
(iii) Stems from the work of many of the pioneers of scientific management who were able to
demonstrate the value, from a performance and profit point of view, of some of the techniques
they were developing.
It is observed that one cannot demarcate the beginning and end points of Production
Management in an establishment. The reason is that it is interrelated with many other functional
areas of business, viz., marketing, finance, industrial relation policies etc.
Alternately, Production Management is not independent of marketing, financial and personnel
management due to which it is very difficult to formulate some single appropriate definition of
Production Management.

“Production Management is the process of effective planning

and regulating the operations of that section of an enterprise
which is responsible for the actual transformation of materials
into finished products.”
This definition limits the scope of production management to those activities of an enterprise
which are associated with the transformation process of inputs into outputs. & the definition does
not include the human factors involved in a production process. It lays stress on materialistic
features only.
(ii) Production Management deals with decision-making related to production process. So that the
resulting goods and services are produced in accordance with the quantitative specifications and
demand schedule with minimum cost.
According to this definition design and control of the production system are two main functions of
production management.
(iii) Production Management is a set of general principles for production economies, facility
design, job design, schedule design, quality control, inventory control, work study and cost and
budgetary control. This definition explains the main areas of an enterprise where the principles of
production management can be applied. This definition clearly points out that production
management is not a set of techniques.
It is evident from above definitions that production planning and its control are the main
characteristics of production management. In the case of poor planning and control of production
activities the organization may not be able to attain its objectives and may result in loss of
customer’s confidence and retardation in the progress of the establishment.
In short, the main activities of production management can be listed as:
(i) Specification and procurement of input resources namely management, material, and land,
labour, equipment and capital.
(ii) Product design and development to determine the production process for transforming the
input factors into output of goods and services.
(iii) Supervision and control of transformation process for efficient production of goods and
services.

Functions of Production Management:

The definitions discussed above clearly shows that the concept of production management is
related mainly to the organizations engaged in production of goods and services. Earlier these
organizations were mostly in the form of one man shops having insignificant problems of
managing the productions.
But with development and expansion of production organizations in the shape of factories more
complicated problems like location and lay out, inventory control, quality control, routing and
scheduling of the production process etc. came into existence which required more detailed
analysis and study of the whole phenomenon.
This resulted in the development of production management in the area of factory management.
In the beginning the main function of production management was to control labour costs which at
that time constituted the major proportion of costs associated with production.
But with development of factory system towards mechanization and automation the indirect labour
costs increased tremendously in comparison to direct labour costs, e.g., designing and packing of
the products, production and inventory control, plant layout and location, transportation of raw
materials and finished products etc. The planning and control of all these activities required more
expertise and special techniques.
In modern times production management has to perform a variety of functions, namely:
(i) Design and development of production process.
(ii) Production planning and control.
(iii) Implementation of the plan and related activities to produce the desired output.
(iv) Administration and co-ordination of the activities of various components and departments
responsible for producing the necessary goods and services.
However, the responsibility of determining the output characteristics and the distribution strategy
followed by an organization including pricing and selling policies are normally outside the scope of
Production Management.

Scope of Production Management:

The scope of production management is indeed vast. Commencing with the selection of location,
production management covers such activities as acquisition of land, constructing building,
procuring and installing machinery, purchasing and storing raw materials and converting them into
saleable products. Added to the above are other related topics such as quality management,
maintenance management, production planning and control, methods improvement and work
simplification and other related areas.
Operations management is chiefly concerned with planning, organizing and supervising in the
contexts of production, manufacturing or the provision of services. As such, it is delivery-focused,
ensuring that an organization successfully turns inputs to outputs in an efficient manner. The
inputs themselves could represent anything from materials, equipment and technology to human
resources such as staff or workers.
Examples of the types of duties or specialist positions this encompasses are procurement
(acquiring goods or services from external sources), managing relations with those involved in
processes and improving a company’s sustainability with regard to their use of resources.
There are two key terms that can help answer the question of what operations management is
more precisely: supply chain management and logistics. Operations management has firm
foundations in both areas. For example, understanding global trends in supply chain management
in order to meet client demand is often critical. With logistics the careful and considered use of
resources, as well as cost-effectiveness, has become increasingly important in an era in which
resources can often be in short supply and customer expectations have skyrocketed.

Skills required of an operations manager

There are strong parallels between the skills required for effective operations management and
those needed in both logistics and supply chain management. Excellent organizational ability is
crucial in successfully enhancing efficiency and driving productivity as an operations manager.

One must be able to understand the series of processes within a company to get them to
flow seamlessly, and in this sense the role is directly related to supply chain management.
Meanwhile, the coordination involved in setting up these processes in practice represents
logistics; the combination of understanding and coordinating the work of a company are
central to becoming a successful operations manager.

Contextualizing the role of the operations manager

The operations manager is able to transcend industries so exact job functions can vary based on
the company you work for. At the base level, the two main streams an operations manager might
belong to can be reduced to companies with a concentration on manufacturing and production, or
those that provide services.
Operations management roles within say, a pharmaceutical company fall under the category of
production. Planning and coordinating the use of resources to ensure products are designed,
created and dispatched to hospitals, chemists and so on, ensure not only that these products are
prepared, but also that they are available to customers.
Meanwhile, an airline company will often see the operations manager focus on services –
transporting passengers and/or cargo from one place to another.
In addition, it is likely that a manufacturing focus on the delivery of a tangible product will involve
less direct contact with customers than a services role.
These examples illustrate the clear distinction between the roles of an operations manager in two
distinct industries.
However, in reality most companies will not fit easily into one category or the other in the entirety
of its operations. A car company doesn’t simply manufacture cars, it also services them. A café
serving coffee might very easily also produce their own coffee. There is also what is known
as quasi-manufacturing organizations, which seem more like manufacturing firms, but are clearly
providing a service, such as an automated warehouse dispatching goods.
The more one analyses the question of what operations management is, the more one sees how
integral the position can be to any given company, be it small or large. There can be strong
overlap with supply chain management, logistics or engineering, but there are many other
industries and areas where operations functions and the skills of an effective operations manager
are strongly tied to an organization’s lasting success.

What is Quality Control

Quality control is a process through which a business seeks to ensure that product quality is
maintained or improved with either reduced or zero errors. Quality control requires the business to
create an environment in which both management and employees strive for perfection. This is
done by training personnel, creating benchmarks for product quality and testing products to check
for statistically significant variations.
A major aspect of quality control is the establishment of well-defined controls. These controls help
standardize both production and reactions to quality issues. Limiting room for error by specifying
which production activities are to be completed by which personnel reduces the chance that
employees will be involved in tasks for which they do not have adequate training
BREAKING DOWN Quality Control
Quality control involves testing of units and determining if they are within the specifications for the
final product. The purpose of the testing is to determine any needs for corrective actions in the
manufacturing process. Good quality control helps companies meet consumer demands for better
products.
Quality testing involves each step of the manufacturing process. Employees often begin with the
testing of raw materials, pull samples from along the manufacturing line and test the finished
product. Testing at the various stages of manufacturing helps identify where a production problem
is occurring and the remedial steps it requires to prevent it in the future.

Quality Control Measures Depend on the Product

The quality control a business uses is highly dependent on the product. In food and drug
manufacturing, quality control includes ensuring the product does not make a consumer sick, so
the company performs chemical and microbiological testing of samples from the production line.
Because the appearance of prepared food affects consumer perception, the manufacturers may
prepare the product according to its package directions for visual inspection. In the automobile
manufacturing, quality control focuses on the way that parts fit together and interact and ensuring
engines operate smoothly and efficiently. In electronics, testing might involve using meters that
measure the flow of electricity.

The Role of Quality Control Inspectors

Quality control inspectors protect the consumer from defective products and the company from
damage to its reputation due to inferior manufacturing processes. If the testing process reveals
issues with the product, the inspector has the option of fixing the problem himself, returning the
product for repairs or tagging the product for rejection. When issues arise, the inspector notifies
supervisors and works with them to correct the problem.

Here is a tendency for individual consultants and organizations to name their own unique
approaches to quality control—a few of these have ended up in widespread use:

Approximate
Terminology year of first Description
use

The application of statistical methods

Statistical quality
1930s (specifically control charts and acceptance sampling)
control (SQC)
to quality control[8]:556

Popularized by Armand V. Feigenbaum in a Harvard

Business Review article[9] and book of the same
Total quality control name.[10]; stresses involvement of departments in
1956
(TQC) addition to production (e.g., accounting, design,
finance, human resources, marketing, purchasing,
sales)
 The use of control charts to monitor an individual
Statistical process industrial process and feed back performance to the
1960s
control (SPC) operators responsible for that process; inspired
by control systems

Company-wide quality
1968 Japanese-style total quality control[10]
control (CWQC)

Quality movement originating in the United States

Total Quality Department of Defense that uses (in part) the
1985
Management (TQM) techniques of statistical quality control to drive
continuous organizational improvement[11]

Statistical quality control applied to business

Six Sigma (6σ) 1986
strategy[12]; originated by Motorola

Six Sigma applied with the principles of lean

Lean Six Sigma(L6σ) 2001 manufacturing and/or lean enterprise; originated by
Wheat et al.[13]

QUALITY CONTROL & QUALITY ASSURANCE

Quality control and quality assurance are two terms that are often used interchangeably. Although
similar, there are distinct differences between the two concepts. Here we are trying to explain the
differences between quality control and quality management, and provide definitions and
examples of each.

 Quality assurance vs. quality control

 Quality Assurance: Definition
 Quality Control: Definition
 Quality history

DIFFERENCES BETWEEN QUALITY ASSURANCE AND QUALITY CONTROL

Quality assurance and quality control are two aspects of quality management. While some quality
assurance and quality control activities are interrelated, the two are defined differently. Below are
definitions from ISO 9000:2015: Quality management systems – Fundamentals and vocabulary.

WHAT IS QUALITY ASSURANCE?

Quality assurance can be defined as "part of quality management focused on providing

confidence that quality requirements will be fulfilled." The confidence provided by quality
assurance is twofold – internally to management and externally to customers, government
agencies, regulators, certifiers, and third parties. An alternate definition is "all the planned and
systematic activities implemented within the quality system that can be demonstrated to provide
confidence that a product or service will fulfill requirements for quality."

WHAT IS QUALITY CONTROL?

Quality control can be defined as "part of quality management focused on fulfilling quality
requirements." While quality assurance relates to how a process is performed or how a product is
made, quality control is more the inspection aspect of quality management. An alternate definition
is "the operational techniques and activities used to fulfill requirements for quality."

WHAT IS INSPECTION AS IT RELATES TO QUALITY?

Inspection is the process of measuring, examining, and testing to gauge one or more
characteristics of a product or service and the comparison of these with specified requirements to
determine conformity. Products, processes, and various other results can be inspected to make
sure that the object coming off a production line, or the service being provided, is correct and
meets specifications.

INDUSTRY PERSPECTIVES ON ASSURANCE AND CONTROL

For some service organizations, the concept of quality control may be foreign because there is no
tangible product to inspect and control. The quality assurance function in a service organization
may not include quality control of the service but may include quality control of any products
involved in providing the service.

A service may include products that are documents (such as a report, contract, or design) or
tangible products such as a rental car or units of blood. It may be necessary to control product
quality in a service organization to ensure that the service meets customer requirements.

QUALITY ASSURANCE AND AUDIT FUNCTIONS

Auditing is part of the quality assurance function. It is important to ensure quality because it is
used to compare actual conditions with requirements and to report those results to management.

In The Quality Audit: A Management Evaluation Tool (McGraw-Hill, 1988), Charles Mill wrote that
auditing and inspection are not interchangeable: “The auditor may use inspection techniques as
an evaluation tool, but the audit should not be involved in carrying out any verification activities
leading to the actual acceptance or rejection of a product or service. An audit should be involved
with the evaluation of the process and controls covering the production and verification activities.”

Formal management systems have evolved to direct and control organizations. There are quality
management systems (QMSs) as well as environmental or other management systems, and each
of these systems may be audited.

HISTORY OF QUALITY CONTROL AND ASSURANCE

Quality has been defined as fitness for use, conformance to requirements, and the pursuit of
excellence. Even though the concept of quality has existed from early times, the study and
definition of quality have been given prominence only in the last century.

1920s: Quality Control

 Following the Industrial Revolution and the rise of mass production, it became important to better
define and control the quality of products. Originally, the goal of quality was to ensure that
engineering requirements were met in final products. Later, as manufacturing processes became
more complex, quality developed into a discipline for controlling process variation as a means of
producing quality products.

1950s: Quality Assurance and Auditing

The quality profession expanded to include the quality assurance and quality audit functions. The
drivers of independent verification of quality were primarily industries in which public health and
safety were paramount.
Different meaning could be attached to the word quality under different circumstances. The word
quality does not mean the quality of manufactured product only. It may refer to the quality of the
process (i.e., men, material, and machines) and even that of management. Where the quality
manufactured product referred as or defined as

“Quality of product as the degree in which it fulfills the requirement of the

customer. It is not absolute but it judged or realized by comparing it with
some standards”.

Quality in Production and Operations Management

Quality begins with the design of a product in accordance with the customer specification further it
involved the established measurement standards, the use of proper material, selection of suitable
manufacturing process etc., quality is a relative term and it is generally used with reference to the
end use of the product.
Crosby defined as “Quality is conformance to requirement or specifications”.
Juran defined as “Quality is fitness for use”. “The Quality of a product or service is the
fitness of that product or service for meeting or exceeding its intended use as required by the
customer.”

Fundamental factors affecting Quality Control

Fundamental Factors Affecting Quality

The nine fundamental factors (9 M’s), which are affecting the quality of products and services,
are: markets, money, management, men, motivation, materials, machines and mechanization.
Modern information methods and mounting product requirements.

1. Market: Because of technology advancement, we could see many new products to satisfy
customer wants. At the same time, the customer wants are also changing dynamically. So, it is
the role of companies to identify needs and then meet it with existing technologies or by
developing new technologies.
2. Money: The increased global competition necessitates huge outlays for new equipments and
process. This should be rewarded by improved productivity. This is possible by minimizing
quality costs associated with the maintenance and improvements of quality level.
3. Management: Because of the increased complex structure of business organization, the
quality related responsibilities lie with persons at different levels in the organization.
4. Men: The rapid growth in technical knowledge leads to development of human resource with
different specialization. This necessitates some groups like, system engineering group to
integrate the idea of full specialization.
5. Motivation: If we fix the responsibility of achieving quality with each individual in the
organization with proper motivation techniques, there will not be any problem in producing the
designed quality products.
6. Materials: Selection of proper materials to meet the desired tolerance limit is also an
important consideration. Quality attributes like, surface finish, strength, diameter etc., can be
obtained by proper selection of material.
7. Machines and mechanization: In order to have quality products which will lead to higher
productivity of any organization, we need to use advanced machines and mechanize various
operations.
8. Modern information methods: The modern information methods help in storing and
retrieving needed data for manufacturing, marketing and servicing.
Mounting product requirements: Product diversification to meet customers taste leads to
intricacy in design, manufacturing and qualiTotal Quality Management (TQM) is a comprehensive
system for achieving continuous improvement in customer satisfaction. It is a philosophy of total
integration of the business to achieve the required result. The goal is to achieve greater efficiency
and effectiveness, lower operating cost and increased market share

TQM practices focus on satisfying customer needs. This means making the needs of the
customer the priority, expanding the relationship beyond traditional services and incorporating the
customer’s needs in the company’s business plan and corporate strategy.

TQM philosophy is so called because:

- It involves every single piece of work done in the organization

- It involves everybody in the organization

- It requires total commitment.

The aim of TQM is to achieve zero defects in everything done in the organization, i.e. to do error-
free work. To achieve this means everything we do must be right, first time, every time. The
common theme in TQM is "get it right first time, every time’’.

TQM means changing the way people do things so as minimize the potential for defects. The
TQM approach uses statistical methods to find problems that cause errors or defects. The aim is
to achieve 100% in everything done in the organization i.e. we aim at perfection.

Quality systems integration requires that the business looks out for the customer while the
customer looks out for the survival of the business. For, if there is no business, there will be no
product. If there is no product, customers’ needs cannot be met. A simple framework for
highlighting this is the business-customer integration loop developed by Badiru and Ayeni in
their Practitioner’s Guide to Quality and Process Improvement.

We must aim at 100% quality because doing otherwise leads to wastage. To appreciate the
effects of mistakes, consider a process that is 99% perfect. That process will produce 10,000
defects per million parts. The total yield (number of non-defective units) from a process is
determined by a combination of the performance levels of all the steps making up the process.
Total Quality Management is defined as a continuous effort by management to upgrade and
improve the processes and systems to ensure superior quality products. Every organization has
to take care of its customers. Their feedbacks are essential. Total Quality management creates
processes and systems based on customer feedbacks and various researches which eventually
help in the development of organization.

Managers play an important role in Total Quality Management:

Initiating and implementing total quality management programs require great amount of planning
and research. Managers need to get trained in various TQM practices before implementing the
same. There are costs involved with the entire process of total quality management. It is the
manager’s responsibility to allocate budgets for TQM at the beginning of every financial year.
Remember, you can’t crib later on. Read a lot about total Quality management.

You need to be convinced first why quality is such an important parameter in every business. If
you yourself are not convinced, it would be very difficult for you to convince other departments for
implementing TQM. Know who your customers are? Understand your target market carefully. Go
out, meet customers and find out as to what all they expect from your brand. Customer feedbacks
play an important role in formulating strategies for total quality management. As a manager; you
need to work closely with the senior management, human resource professionals to develop
foolproof implementation strategies. Remember, a manager has to act as a bridge between the
senior management and the entire workforce.
The role of a manager is to act as a facilitator at the workplace. It is your duty to assist
employees in implementing TQM. As a manager, it is your responsibility to select and appoint
right individuals who can work as line managers and take charge of the entire project. The
employees, you select ought to be reliable and diligent and should be capable enough to handle a
crucial project like total quality management. It is the manager’s responsibility to assign resources
for total quality management, allocate time for various training programs and appreciate
employees who come up with various improvement ideas and strategies which would help the
organization deliver superior quality products. Further train your subordinates to ensure smooth
implementation of TQM without any obstacles.
A manager must communicate the benefits of total quality management to all other
members of the organization. Call employees on a common platform and address the benefits
and importance of total quality management. Make them understand how successful
implementation of total quality management programs would yield high quality products which
would not only benefit the organization but also the employees associated with the same. Why do
we always think of outsourcing trainers? Why can’t we train employees on our own? Believe me,
as a manager if you train your employees, the results would be better rather than an unknown
face coming and loading them with information. Do not forget, a trainer needs to be prepared for
every question. Do your homework carefully.

Remember, a manager is always a strong source of inspiration for other employees. You need to
practice total quality management yourself before expecting others to believe in the same.
Customer feedbacks should be carefully monitored and taken into consideration while formulating
company’s major strategies. Provide frequent reports to staff members highlighting scope of
improvement.

If a process consists of 20 steps and each step is 98 percent perfect, then the performance of the
overall process will be 66.7608%. Thus, the process will produce 332,392 defects per million
parts.

Excellent organizations allow for no more than 3.4 defects per million parts in manufactured
goods or 3.4 mistakes per million activities in a service operation. A process will need to be
99.99966% perfect in order to produce only 3.4 defects per million. This is called the six sigma
approach to TQM.

Achievement of excellence requires totally committed leadership. It is the role of top management
to communicate the vision of the organization, its mission and philosophy, and channel the
energies of their people towards the achievement of set goals. Achievement of excellence
therefore is rooted in having a clear vision, mission and philosophy.
Vision is a total concept of what an organization is trying to become. It seeks to focus the
organization on the future. Vision must give focus and a sense of direction. Peter Drucker has
said, "The definition of vision must be rooted in providing answers to probing questions such as
‘‘What is our business? What will it be? What should it be?’’

Mission seeks to answer the question "What are we here to do?’’ It is an umbrella statement.
Anything that falls within that umbrella is what the company does, anything that does not fall
within it the company does not do.

Peter Drucker has said "a business is not defined by the company’s name, statutes, or articles of
incorporation. It is defined by the want the customer satisfies when he buys a product or service.
To satisfy the customer is the mission and purpose of every business.’’ The question "what is our
business?" can therefore be answered only by looking at the business from the outside, from the
point of view of the customer and market. What the customer sees, thinks, believes, and wants, at
any given time must be accepted by management as an objective fact. To the customer, no
product or service, and certainly no company is of much importance. The customer only wants to
know what the product or service will do for him tomorrow. All he is interested in are his own
values, his own wants, and his own reality. For this reason alone, any serious attempt to answer,
"what our business is" must start with the customer, his realities, his situation, his behaviour, his
expectations, and his values.’’

Corporate values are the underlying beliefs about what the organization
considers important in its everyday endeavor. The sum of these beliefs in an
organization constitutes the organizations shared values. This is sometimes
called the corporate culture and is expressed by the statement, "the way we do
things around here". A management guru once said "values are the heart and
soul themes around which an organization rallies, they define its main beliefs
and aspirations, its guiding concept of "who we are, what we do, where we are
headed and what principles we will stand for in getting there." They drive the
corporate culture.

To build an excellent organization there must be a "goodness of fit" among the key variables that
make the whole organization. One enduring framework you can use is the McKinsey 7S
framework, once dubbed the happy atom, with shared values at the heart of the atom.

So how does all this tie in with managing your various type of businesses? Every business is a
creative business. Every business is an art, not a science. We are engaged in the art of making
money on the basis of grossly insufficient information. We must therefore learn to blend scientific
efforts with creative skills.

Organizations pass through different growth phases. As the firm grows it should strive to preserve
its original guiding principles. It should develop deeply held convictions and a simple and
intelligent business philosophy. This philosophy should be guiding, but is should not be inflexible.

The organization should be outwardly focused on its clients but should be selective in choosing
them. It should target its markets and control its growth. Above all, it should not try to be all things
to all people.

As Marvin Bower of McKinsey once said, "a successful organization usually consists of a group of
talented people who like and respect one another. The firm nurtures in its members the ambition
and the determination to be outstanding at what they do. The firm encourages intellectual
disagreement and interaction among its members but insists upon mutual respect. The firm tries
to enable outstanding people to flourish by leveraging their skills and providing a creative
environment. It never permits any relaxation of professionalism or of high standard.’’ As J. P.
Morgan put it, "the goal is to do a first-class business in a first-class way."
 An organization is strategy built around people, and their talents. Each person should strive to
concentrate on what he or she can do best, or at least do well. This reality calls for constant
communication both within and outside of the organization, relative to the goals of the
organization.

A successful firm is willing to invest in technology to remain on the leading edge, and its members
reflect a willingness to learn and an urge to tinker.

The list of primary goals of a successful firm does not include profit. Generally, this objective
should be subordinated. If you do it well, the profits will come. Marvin Bower of Mckinsey & Co.
was quoted as saying that "any service business that gives a higher priority to profit deserves to
fail."

No firm can succeed without a good leader. David Ogilvy viewed the leader’s primary role as
"providing an environment in which creative people can do useful work." Max Dupree in his book
on leadership said that the function of the leader is "to give others the space to be what they can
be." If they approach their individual potential, so will the organization.’’ He also said that "the first
responsibility of the leader is to define reality, while the last is to say thank you." Warren Bennis
has said that what is pivotal for the leader is "to have an overreaching vision, to set an example of
passion, curiosity, integrity, and daring for the others in the organization."

For sustained success, a business must stay entrepreneurial. Often, the tendencies that come
with growth are to turn inward, away from customers, to set up a hierarchy and a lot of
committees, and frequently to encumber the skilled managers with too many other duties. Really
good people do not wish to be actively managed. Both Peter Drucker and Joseph Schumpeter
said that retaining the spirit of entrepreneurship is accomplished primarily by defying tradition,
challenging orthodoxy, breaking up the old, selecting niches, and recognizing that bureaucracy
and success are irreconcilable. Jack Welch said the "best way to deal with bureaucracy is to kill
it."

In summary, Quality (with capital Q) is the key to business growth and success. Aim
unequivocally to be the best, focus single-mindedly on your customers, hire and retain talented
people and create an environment that will engender their creativity. Avoid bureaucracy, have a
clear vision, develop a coherent business philosophy and stay lean. In effect strive for excellence.

Doing business in a competitive and dynamic environment requires companies to continually

improve and enhance their business performance and capabilities. One of the key determinants of
the survival of the company in such circumstances is the application of total quality management.
In recent years, the company management is more focused on total quality management, which
leads to maximizing customer satisfaction and loyalty. The aim of this study is focused at
examining the attitudes of corporate clients on a variety of elements implemented TQM process,
provided by bank. For the study, data were collected using the survey method and the statistical
analysis such as correlation and multiple regression analysis. Results of the research point out
that top management commitment, courtesy and responsibility towards our customers as
significant factors of satisfaction. Study results help bank managers to identify quality elements
that need to be improved, to increase the level of customer satisfaction and enhance their
business.

Quality Manager Responsibilities

Include:

 Understanding customer needs and requirements to develop effective quality control processes
 Devising and reviewing specifications for products or processes
 Setting requirements for raw material or intermediate products for suppliers and monitoring
their compliance

Job brief
We are looking for an experienced Quality Manager to ensure that our products and services
meet all necessary requirements before they reach the consumer.

The Quality Manager, or Quality Assurance Manager, will inspect the final product to make sure it
has been built with compliance to legal standards and meets customer expectations. A great
quality manager is thorough and observant with an eye for detail.

They must fully understand the requirements for the product or service and have a sense of
responsibility towards our potential and existing customers as well as the competition.

The goal is to help preserve our reputation by ensuring that our products and services are
capable to drive sustainable growth.

Responsibilities

 Understand customer needs and requirements to develop effective quality control processes
 Devise and review specifications for products or processes
 Set requirements for raw material or intermediate products for suppliers and monitor their
compliance
 Ensure adherence to health and safety guidelines as well as legal obligations
 Supervise inspectors, technicians and other staff and provide guidance and feedback
 Oversee all product development procedures to identify deviations from quality standards
 Inspect final output and compare properties to requirements
 Approve the right products or reject defectives
 Keep accurate documentation and perform statistical analysis
 Solicit feedback from customers to assess whether their requirements are met
 Submit detailed reports to appropriate executives
 Be on the lookout for opportunities for improvement and develop new efficient procedures

Total Quality Manager Responsibilities In Automobile Industry

He is responsible for the inspection of all incoming parts from supply chain companies and
internally produced components/vehicles to meet the quality standards and systems required.

He will have people and budgetary management responsibility.

Overall Purpose of the Role:

Provide clear leadership for the development of an environment focused on Quality. Develop
quality-process links with customers inline with the Quality Management system (including:
TS16949, ISO14001 / ISO 9001 / OHAS 18001) Production Part Approval Process (PPAP),
Advanced Product Quality Planning (APQP), Controls Plans, Failure Mode and Effect Analysis
(FMEA) and Supplier Quality Assurance (SQA) processes and oversee continued compliance
and embedding across the business. Responsible for maintaining relationships with customers
and suppliers to maximise profit potential and ensure efficiency. Manage the audit programme
as well as supplier development and improvement and play a key role in ensuring project
deliveries. Work proactively with all Directors, Managers, Supervisors and Employees, to
maintain a programme of continual improvement within their areas of responsibility. Lead a
 ‘correct at source’ and problem solving methodology (Lean). Lead the team to achieve quality
targets for customers and business goals.

Key Responsibilities:

Strategy and Development

 Contribute to the creation and implementation of best practice quality vision, strategy,
policies, processes and procedures to aid and improve operational performance
 Contribute to new business initiatives and projects and review and communicate the
impact on Quality activities

General and Task Management

 Implement all relevant procedures described in the Quality Management System (QMS)
and ensure compliance
 Ensure that all in-house systems and procedures are updated, revised and modified to
meet the needs of external certification bodies
 Respond to customer complaints putting in containment actions, full analysis, poka-yokes
(error proofing), and implementing short-term and long-term countermeasures
 Champion a program for the implementation and sustainment of a continuous improvement
culture
 Act as a point of contact for warranty issues
 Update quality documentation and communicate to carry forward lessons learned from
quality concerns in new customer contracts
 Ensure that all necessary systems and procedures are in place to satisfy all customer
requirements and audits
 Introduce new systems and procedures where appropriate
 Train others in all aspects of the quality system and application of procedures
 Undertake internal and process audits of the Quality Management System (QMS)
 Management of the Quality Engineers and Technicians in the sign-off of parts and the
resolution of internal/external quality concerns
 Establish and refine quality sign-off instructions, standards and
documentation
 Report against agreed quality metrics on a monthly basis
 Lead regular inspection meetings with representatives from appropriate departments to
establish an action plan for improving build quality
 In conjunction with the Supplier Quality Assurance function, reduce the effect of non-
conforming supplier materials on the production area quality
 Attend various meetings and action/communicate instructions
 Produce written reports and make presentations
 Undertake continuous training and development
 Perform root cause analysis and resolve problems
 Stay current and up to date on any changes that may affect the supply and demand of
needed products and materials and advise others of any impact
 Identify business improvement opportunities within the organisation
 Identify and deploy the technical skill sets, resource levels and systems to deliver projects,
including the engagement of external resources as required
 Develop, implement and manage key performance indicators (KPIs) for each area of
 responsibility
 Set department objectives/KPIs and review and assess ongoing
performance of direct reports
 Ensure KPIs are met by working to the overall plan, including management of, and
reporting
 Report on achievement of targets and identify any actions required
 Ensure that the function operates in accordance with any health, safety and environmental
policies and procedures to ensure the safety and wellbeing of staff and visitors
 Conduct risk assessments of processes and tasks in the department

People Management

 Ensure the delivery of the People Strategy within area of accountability

 Manage, coach and develop a high performing Quality Operations team that meets agreed
objectives and which delivers best practice results, added value and continuous
improvements
 Manage and lead the team, ensuring adequate staffing levels
 Motivate and coach the team to operational success
 Monitor the completion of tasks and ensure good performance and record on appropriate
systems
 Consistently promote high standards through personal example and roll out through the
team so that each member of the team understands the standards and behaviours
expected of them
 Review, implement and update company records e.g. training matrices, performance
reviews, risk assessments
 Communicate KPIs from the strategic annual plan so that each employee is aware
 Provide technical expertise to the team
 Manage contractors on site to ensure they meet legal and company requirements

Financial and Budget Control

 Input and hold responsibility for Quality budgets

 Responsible for achieving budget and forecast
 Prepare the annual Quality budget and forecasts and all Capital Expenditure proposals as
well as ensuring compliance with legal standards. Manage the budget from identification to
completion of projects

Relationship Management

 Develop and maintain strong relationships with internal and external stakeholders to
ensure optimal performance
 Work collaboratively, negotiate and engage with key stakeholders to facilitate delivery and
compliance with the Quality strategy
 Communicate with stakeholders the impact of market change and potential effects on
engineering design and development. Recommend solutions without compromising quality
or service while optimising cost
 Liaise with suppliers to resolve quality issues
 Liaise and communicate with other departments, customers, suppliers and other service
providers
 Work as part of the Management team to share ideas and improve operation,
recommending, supporting and implementing continuous improvement activities and
process and procedure improvements to optimise results and improve quality of delivery, in
line with quality
 standards requirements delivery in line with Company and Customer requirements
 Communicate with personnel at all levels, internally and externally to the Company, in relation
to Quality matters

Self Management
 Comply with the Health, Safety and Environmental Policies
 Support encourage and develop team
 Proactively contribute to creating a good team atmosphere
 Anticipates and overcomes obstacles
 Makes useful links to arrive at insightful plans and solutions
 Embraces personal challenge
 Confident, rounded thinking
 Takes ownership for team cohesion
 Is self aware
 Is resilient, optimistic and open to change
 Has an Adult:Adult, collaborative approach to others
 A self-starter, motivated and able to positively motivate others
 Focused, target driven with a positive, can-do attitude

Skills and Attributes:

 Excellent leadership and man- management skills

 Excellent interpersonal skills
 Ability to manage a variety of cross-functional team members
 Excellent written, verbal and presentation skills
 Excellent organisational and follow-up skills
 Competent in problem solving, team building, planning and decision making
 Commercially aware

Qualifications and Experience Levels:

 Relevant manufacturing/engineering degree is preferred, or HND, BTec Professional Level 5

Award or equivalent NVQ Level 5 qualifications.
 Membership of an industry related professional body would be advantageous
 Significant experience in a high volume manufacturing environment, preferably automotive
 Experience of working in Quality Assurance
 Six Sigma/Lean Manufacturing skills
 Experience of dealing with customers and suppliers