CHAPTER 3

LEADERSHIP AND
COMMITMENT
THE TOTAL QUALITY MANAGEMENT APPROACH

 TQM is an approach to improving the competitiveness, effectiveness and flexibility of a whole organization.

 It is essentially a way of planning, organizing and understanding each activity, and depends on each
individual at each level.
 For an organization to be truly effective, each part of it must work properly together towards the same
goals, recognizing that each person and each activity affects and in turn is affected by others.
THE TOTAL QUALITY MANAGEMENT APPROACH

 The managements of many firms may think that their scale of operation is not sufficiently large, that their
resources are too slim or that the need for action is not important enough to justify implementing TQM.
 Before arriving at such a conclusion, however, they should examine their existing performance by asking the
following questions:
 1. Is any attempt made to assess the costs arising from errors, defects, waste, customer complaints, lost sales,
etc.? If so, are these costs minimal or insignificant?
 2. Is the standard of management adequate and are attempts being made to ensure that quality is given
proper consideration at the design stage?
THE TOTAL QUALITY MANAGEMENT APPROACH

 3. Are the organization’s quality management systems – documentation, processes, operations, etc. – in good order?
 4. Have people been trained in how to prevent errors and problems? Do they anticipate and correct potential causes of problems, or do
they find and reject?
 5. Are subcontract suppliers being selected on the basis of the quality of their people and services as well as price?
 6. Do job instructions contain the necessary quality elements, are they kept up to date and are employers doing their work in accordance
with them?
 7. What is being done to motivate and train employees to do work right first time?
 8. How many errors and defects, and how much wastage occurred last year? Is this more or less than the previous year?
COMMITMENT AND POLICY

 Every organization should develop and state its policy on quality, together with arrangements for its
implementation.
 A sound quality policy, together with the organization and facilities to put it into effect, is a fundamental
requirement, if an organization is to fully implement TQM.
THE QUALITY POLICY

 1. Identify the end customer’s needs (including perception).

 2. Assess the ability of the organization to meet these needs economically.

 3. Ensure that any bought-in materials meet the required standards of performance and efficiency.

 4. Ensure that subcontractors or suppliers share your values and process goals.

 5. Concentrate on the prevention rather than detection philosophy.

 6. Educate and train for quality improvement and ensure that your subcontractors do so as well.

 7. Measure customer satisfaction at all levels, the end customer as well as customer satisfaction between the links of the supply chain.

 8. Review the quality management systems to maintain progress.

EFFECTIVE LEADERSHIP

 Effective leadership starts with the chief executive’s and his top team’s vision, capitalizing on market or
service opportunities, continues through a strategy that will give the organization competitive or other
advantage, and leads to business or service success.
 Together, effective leadership and total quality management result in the company or organization doing the
right things, right first time. The five requirements for effective leadership are the following.
EFFECTIVE LEADERSHIP

 1. Developing and publishing clear documented corporate beliefs and purpose – a vision

 2. Develop clear and effective strategies and supporting plans for achieving the vision
 3. Identify the critical success factors and critical processes

 4. Review the management structure

 5. Empowerment – encouraging effective employee participation

CRITICAL SUCCESS FACTORS AND CRITICAL PROCESSES

 organization – and take action on what is communicated; and they should encourage good communications
between all suppliers and customers.
 Particular attention must be paid to the following.
 Attitudes

 Abilities

 Participation
CRITICAL SUCCESS FACTORS AND CRITICAL PROCESSES

 If all employees are to participate in making the company or organization successful (directors and managers
included), then they must also be trained in the basics of disciplined management. They must be trained to:
 E Evaluate – the situation and define their objectives
 P Plan – to achieve those objectives fully

 D Do – implement the plans

 C Check – that the objectives are being achieved.

 A Amend – take corrective action if they are not.