Leadership

Total Quality Management is a way of

managing an organization with the
objective of carrying out right jobs right –
the first time and every time. In quality
management, there is a thumb rule called
85/15 Rule. It means that the root causes
of 85% of the problems in the
organization are due to faulty systems and
15% are a result of the behavior of the
employee.
The International Standard, ISO 9000, defines Total
Quality Management (TQM) as “a management approach
of an organization, centered on quality, based on the
participation of all its members and aiming at long term
success through customer satisfaction and benefits to
the members of the organization and to the society.
The standard also says that there are so many other
names, which are used essentially to represent TQM as
given below:
• Continuous Quality Improvement
• Total Quality
• Total Business Management
• Organization Wide Quality Management
• Cost Effective Quality Management
Elements of TQM
Constancy of
Purpose
Focus on
Training
Process

Total
Quantitative
Employee
Methods
Involvement
TQM

Continuous
Leadership Process
Improvement

Customer Supplier
Focus Partnership
Deming’s 14 Points
for
Top Management
Deming Point 1 – Create Constancy
of Purpose for Improvement of
Products and Services
• The top management must believe that
their business will continue for 100
years. Such confidence will motivate
them to aim long-term success. It will
infuse a constant quest for innovation,
improvement of processes, products and
services.
 Deming Point 2 – Adopt the
New Philosophy

The new philosophy means

elimination of wastes, delays
and radically changing the work
culture. The new philosophy
means, Just-In-Time (JIT)
manufacturing is possible with
zero defects.
 Deming Point 3 – Cease Dependence on
Mass Inspection

Quality comes not from inspection

but from improvements of the
process.
Doing thins right and doing it right
the first time would reduce the
dependence on inspection, in fact it
would be eliminated.
 Deming Point 4 – End Practice
of Awarding Business on the
Basis of Price Tag Alone
The supplier should be
selected on the basis of the
following 4 parameters:
1. Quality
2. Price
3. Delivery
4. Service
 Deming Point 5 – Constantly
Improve the System of Production
and Services

The process in the organization need

continuous improvement, Kaizen in
Japanese.
 Deming Point 6 –
Institute Training

The abilities of employees

should be improved and
harnessed only through
training.
 Deming Point 7 – Adopt and Institute
Leadership

The need for a style of leadership that

is, for the most part, not found in the
current exisitng industry. This is called
Lead Management – managing without
coercion.
Deming urges that the senior
employees must conduct themselves as
leaders rather than managers.
Deming Point 8 – Drive out Fear
Employees should be encouraged to
suggest improvements and new ideas, ask
question about the existing process, Etc.
if the freedom to express new ideas is
curtailed, then the employees will
continue to do what they are doing. Fear
is detrimental to improvement of
processes.
Deming Point 9 – Breakdown
Barriers Between Staff Areas

Quite often, the various teams

in the organization stop
communicating with each other.
TQM dictates removal of
barriers between the
departments.
Deming Point 10 – Eliminate slogans,
exhortations, and targets for the work
force.
•For Deming, it only generate
“frustration and resentment”
among workers. The best
strategy for improvement is to
correct defects in the system,
not slogans or posters.
 Deming Point 11 – (a ) Eliminate
Numerical Quota for the Work Force
•This forces the worker to ignore
quality and concentrate on
quantity.
(b)Eliminate Numerical Goals for
People in Management
• Setting goals without the necessary
wherewithal does not work.
Deming Point 12 – Remove Barriers that
Rob People of Pride of Workmanship

•If the work is carried out

necessarily, it gives pride to
those who did. Any barrier that
robs the managers or workers
their pride of workmanship
should be removed.
Deming Point 13 – Encourage Education
and Self-improvement for Every One

•If an employee undergoes

education or training, it will
improve his ability, which will
be beneficial to the
organization.
 Deming Point 14 – Take Action to
Accomplish the Transformation

•The top management should

understand the above 13
points and then enable their
employees to understand
them.
Ten Strategies for
Top Management
1. Proactive Management – foresee what will
happen in the future and take advance
action to prevent the occurrence of the
problem as prevention is always better than
cure.
• Proactive management needs proper system
• TQM calls for proactive management
2. Adventurous and Bold Change Management
• Change is essential
• Be adventurous
• Be bold
3. DIRFT – Do It Right The First Time
• Basic Requirements for DIRFT
Right the first time and every time
Set right goals
Select right personnel
Establish right processes
Choose durable raw materials
Choose right machinery
3. DIRFT – Do It Right The First Time
• Basic Requirements for DIRFT
Right the first time and every time
Set right goals
Select right personnel
Establish right processes
Choose durable raw materials
Choose right machinery
4. Continuous Preventive Action
• Corrective action is a Post Mortem
• Prevention is better than cure
• One shot prevention is not good enough
5. Care for Little Things and Accumulate
Gains
• Caring for small things
• Communicate with junior employees
• Keep on accumulating
6. Ensure Economic Performance – it is a clear
indicator of the health of the organization.
• Importance of economic performance
• Quality should increase productivity
• Talk about success in economic performance
7. Management By Walking Around (MBWA) –
postulated by Tom Peters. Defined as the
unannounced visit of the CEO to the various work
spots for getting direct and first hand information
from the employees, the customers, and the
suppliers. State visit is the announced visit. Three (3)
major activities done together simultaneously during
MBWA are listening, teaching and facilitating.
8. Measure for Success– involves looking for,
measuring, and analyzing the feedback from
customers, either internal or external.
• Measure3 P’s: Process, Personnel and
Product
• PDSA for Measurement
• Plan for Measuring Success
9. Never Rest on Past Laurels– Slow and
steady wins the race and over-confidence can
lead to failure.
10. Build a Virtual Organization– core part is
manufactures and the rest bought from qualified
vendors.
• Vertical Integration – means that whatever sub-
units, components/materials, fixtures, etc. needed
for manufacturing product are all manufactured by
the same organization.
• Requirements for Virtual Enterprise
Identify the most critical parts
Identify the other parts
Develop/identify vendors for the other parts
Continuously increase sub-contracting