MM ZG522 Total Quality

Management
Rajiv Gupta
BITS Pilani
Live Lecture 4
 Recitation 4
• Module 1
– Personal Quality Checklist
• Module 2
– Topics Covered in Prerecorded Lectures 5 and 6
• Module 3
– Discussion on Prerecorded Lecture 5
• Module 4
– Discussion on Prerecorded Lecture 6
• Module 5
– Brief Summary of Prerecorded Lecture 7
• Module 6
– Brief Summary of Prerecorded Lecture 8
• Module 7
– Discussion Questions for next week

2
 Recitation 4
• Begin Module 1
– Personal Quality Checklist

3
 Personal Quality Checklist
• My personal quality checklist attributes are:
– Replying to emails within 2 days of receipt
– Being in time for class
– Return phone calls that I wish to return within a day unless traveling.
Then within a day of returning to Delhi.
– Maintain weight between 63 and 65 kg. Modified target
– Walk at least 5 days in a week at least 4 kms each day
– Not add salt at the table
– Not raise my voice in a discussion
– Not interrupt someone when he/she is talking. Hear the person out.
 Run Chart for Defects

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 Recitation 4
• End of module 1

8
 Recitation 4
• Begin Module 2
– Topics Covered in Prerecorded Lectures 5 and 6

9
 Prerecorded Lecture 5
• Prerecorded Lecture 5 discusses problem solving. When a
system does not perform as desired, problem solving
needs to be resorted to
• Problem solving should be done using the PDSA
approach to be effective
• Before we can solve a problem, it is important to first
identify what the problem is and also to identify the root
cause of the problem
• Frequently, if the problem is not correctly understood, or
the root cause not identified, the wrong problem may get
solved or we may address symptoms. The problem will
not be solved for good.

10
 Prerecorded Lecture 5
• The purpose of problem solving is not just to address
the immediate need but to prevent the problem
from occurring at any time in the future
• Six Sigma is an approach to dramatically reduce the
variability in products and processes
• Theoretically, Six Sigma implies one error in a million
opportunities. But in practice it is accepted as 3.4
errors in a million
• An organization needs to approach Six Sigma as a
system and not as a fad.

11
 Prerecorded Lecture 6
• Lecture 6 discusses process improvement.
• Process improvement can be of small scale, medium
scale, or large scale depending on the scope and effect.
• Process improvement can be either continual, and in
small steps, or periodic, and breakthrough in nature.
• Both continual and breakthrough improvements are
necessary to stay ahead of the competition.
• There are a number of charting techniques to improve
processes, Process Charts, Flow Diagram, etc.
 Prerecorded Lecture 6
• Managing change is discussed next.
• Resistance to change comes from a variety of
reasons including habits, fear of the unknown, lack of
trust, lack of understanding, etc.
• Three approaches to convince people to change are
discussed; top down, appealing to logic, and
appealing to societal and emotional concerns.
• Next, three categories of people are discussed; those
who support change, those who resist change, and
those who are neutral.
 Prerecorded Lecture 6
• The neutrals are the largest in number of the three
categories.
• When considering bringing about change, we should
focus on the neutrals, because they are easier to
convert than those opposed to change. However, we
should enlist the support of those who favor the
change.
• Finally, four categories of the cost of quality;
Prevention Costs, Appraisal Costs, Costs of Internal
Failure, and Costs of External Failure are discussed
 Recitation 4
• End of module 2

15
 Recitation 4
• Begin Module 3
– Discussion Questions on Prerecorded lecture 5

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 Recitation
• Discussion questions
– Juran’s Trilogy is Planning, Control, and Improvement.
Does your organization ensure control before
improvement?
– How does your organization deal with problems
related to customer complaints? Does management
believe in going to the gemba?
– Have you been involved in root cause analysis? What
method did you use?
– Does your organization use Six Sigma? Is it s real thing
or a fad at your company?
 Recitation 4
• End of Module 3

18
 Recitation 4
• Begin Module 4
– Discussion Questions on Prerecorded lecture 6

19
 Recitation
• Discussion questions
– Suggest an example of continuous/continual
improvement
– How does your company view process
improvement?
– Have you been involved with managing change, or
seen change being managed? How was the
experience?
– How would you suggest change be managed for
better outcomes?
 Recitation 4
• End of module 4

21
 Recitation 4
• Begin Module 5
– Brief Summary of Prerecorded Lecture 7

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 Brief Summary of Lecture 7
• Prerecorded lecture 7 considers the topics of employee
involvement, motivation and appraisal systems.
• More and more companies are understanding the value
of getting employees involved in problem solving and
improvement activities on the shop floor.
• The first thing we need to understand is the meaning of
the term empowerment. Empowerment does not mean
giving permission, or delegating people to do certain
things.
• Empowerment comes from within. A person must feel
empowered. No one else can empower another person.

23
 Brief Summary of Lecture 7
• Small group activity and suggestion schemes are
methods for employee involvement.
• Several suggestion schemes tend to be started with
good intentions, but do not last due to a variety of
reasons, including focus on rewards, only taking large
benefits suggestions into account, jealousy, etc.
• Next the topic of motivation is covered.
Management usually does not understand what
motivates people and focuses too much on financial
incentives.

24
 Brief Summary of Lecture 7
• Maslow suggested a hierarchy of needs that reveals itself
in layers as a person moves from satisfying basic needs to
self actualization. It is believed that Maslow mentioned
self-transcendence as the final level.
• McGregor has propounded what is known as Theory X
and Theory Y. Managers subscribing to Theory X believe
that people are inherently lazy and do not want to work.
A Theory Y manager however, believes that people are
self motivated and will do a good job if given an
opportunity. Each of the 2 types of managers behaves in
a manner that evokes a response which reinforces the
manger’s belief further.

25
 Brief Summary of Lecture 7
• Hertzberg discusses Hygiene Factors and Motivator
Factors.
• Hygiene factors are those factors, the absence of
which, acts as a demotivator. However, the presence
of hygiene factors are not motivating in themselves.
They are the minimum conditions required.
• Examples are status, work conditions, salary, etc.
• Motivator factors are those that actually motivate
people to do a better job. These include
achievement, recognition, the work itself, etc.

26
 Brief Summary of Lecture 7
• Deming talks about extrinsic and intrinsic motivation.
• Extrinsic motivation can motivate in the short run,
but the true motivation comes from intrinsic
motivation, which represents an inner desire to do a
good job.
• Next we discuss performance appraisals.
• Although most companies tend to have a
performance appraisal system, the reason for the
appraisal seems to be misplaced.

27
 Brief Summary of Lecture 7
• The purpose of appraisal ought to be to provide
feedback and course correction.
• Unfortunately, appraisal systems have degenerated
into ways for rewarding and punishing people based
on arbitrary and subjective criteria and assessment.
• Typical appraisals result in few winners and many
losers. This has the effect of lowering the
organizational morale.

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 Recitation 4
• End of module 5

29
 Recitation 4
• Begin Module 6
– Brief Summary of Prerecorded Lecture 8

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 Brief Summary of Lecture 8
• Lecture 8 is about benchmarking.
• Benchmarking is the process of comparing your
performance against the best in the industry to see how
well you are doing .
• Increased global competition has made benchmarking a
very important tool in modern management.
• However, benchmarking is not a solution to a specific
problem, or a one-off effort.
• It needs to be led by the top management and can be a
key method to facilitate continual improvement.
 Brief Summary of Lecture 8
• Benchmarking creates an atmosphere of learning and
forces the people to understand their own processes and
systems better.
• Benchmarking can be either product benchmarking,
process benchmarking, or strategic benchmarking. Also,
we can benchmark internally, externally, or against the
best in class.
• Internal benchmarking is easier than external
benchmarking, but leads to fewer new ideas.
• In order to conduct process benchmarking, we need to
first identify core processes that are critical to our
business success.
 Brief Summary of Lecture 8
• The steps in benchmarking require that we first
spend time understanding our processes, then plan
against whom we are going to benchmark, then
conduct the benchmarking, identify gaps, and work
on the gaps.
• Benchmarking has to be an ongoing activity.
• One of the problems with benchmarking is that we
consider it is like stealing ideas from someone.
However, it is not just seeing a solution and blindly
copying it. We need to intelligently adapt what
makes sense for our organization.
 Recitation 4
• End of module 6

34
 Recitation 4
• Begin Module 7
– Discussion Questions for next week
– Based on Prerecorded Lectures 7 and 8

35
 Recitation Next Week
• Discussion questions
– What initiatives does your company use for
employee involvement? How successful are they?
Why?
– Do you feel empowered ? What makes you feel
so?
– What is motivation? Is money a motivator?
– What is the difference between intrinsic and
extrinsic motivation?
– How does your company’s appraisal system work?
 Recitation Next Week
• Discussion questions
– Does your company do benchmarking? Who is
involved in it?
– Have you been involved in any benchmarking
exercise?
– Why do you think benchmarking is important to
your company? Is it an ongoing process?
– What are some of the difficulties your company
faces in benchmarking?
Questions?