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Importance Of Leadership, Customer Satisfaction And Benchmarking In Total Quality Management (TQM)

The management’s contribution is crucial in any successful TQM implementation, especially of CEO.
* Next step is to form a quality circle, providing a vision, mission and quality statement. Middle managers are needed to be actively involved in the implementation.
* If there may be any union present in the organization, representatives from it ought to be involved in the process.

Role of senior management:

Senior management must practice the philosophy of Management provided by Wandering Around or MBWA. They must let the workers think themselves. They must be informed of the topics of quality improvement by generating good reading habits. They must celebrate success in the organization. They must organize seminars, coaching etc. Customer listening is another parameter. Good and regular communication with feedback is again required with employees and consumers.

Characteristics of Quality Leaders

* The quality leaders take the matters with respect to customers and work on the changing requirements of the purchasers.
* Quality leaders are such that they’ve total control over the work of their sub-ordinates.
* Quality leaders believe in improvement more than in maintaining the current position.
* These leaders are more likely to stop any mishap rather than waiting for them to happen.
* Quality leaders develop the skill of mutual co-operation rather than mutual competition.
* Quality leaders believe in working with the team, helping them once in a while.
* They believe in the concept of quality after learning from problems. They strive to improve the power of dissemination of knowledge.

Leadership Concepts

* A frontrunner is well acquainted with the actual fact that each one employees need independence along with security.
* Though rewards and punishments matter to a large extent, self-motivation is extremely followed.
* It’s a common tendency that people like to listen to well about themselves. They should be appreciated for his or her achievements.
* A frontrunner can be required to make things easily understandable.
* Self-confidence is more trustworthy than the statistical data.
* People don’t obey a leader if his words contradict.

The 7 Habits of highly Effective People

* The primary of those habits is to be proactive which suggests to have a look at alternatives and take decisions rather than wait for things to happen.
* Secondly, one must begin keeping the end in mind. One must be true to himself in taking any step in life.
* Thirdly, one must put first things first which is an inclusion of self-management.
* Fourthly, one must think win-win. This means that one should always be optimistic.
* Next, one must think such that he can understand what others say rather than seek to be understood by all.
* Sixth, one should believe in synergy such that he can achieve a goal with a feeling of togetherness rather than an individualistic approach.
* Finally, one must sit up for sharpen the saw. This means that one must enhance the four dimensions of nature namely-physical, spiritual, mental and social or emotional.

Quality Council:

Quality council comprises of CEO, senior managers of functional areas like finance, production etc. An everyday meeting must be organized to debate and plan issues like:

* Developing a vision, mission and quality statement,
* Developing a long term goal strategy
* Education and training plan
* Determining performance plan
* Determining processes that improves the current ones
* Establishing multifunctional project and group based work culture, developing a reward system etc.

Core Values and concept:

Some core values in TQM include customer driven quality which considers:

* It’s end user who determines the standard of the product not any manager
* Second is leadership which states that
o Leaders must set directions
o Continuous improvement and learning process within the organization and employees
o Valuing employees
o A more dynamic market response mechanism
o Emphasizing design quality and preventing waste through developing quality within the products
o Long term orientation rather than seeking short term opportunities
o Management by facts
o Developing partnership
o Understanding corporate and citizen responsibility and specializing in end result.

Shared Values:

Shared values process is composed of eight principles. They are:

* Treating others with truth
* plentiful trust on co-workers and associates
* Creating learning atmosphere with unselfish mentoring (employee to management and vice versa)
* Invites new ideas
* Take personal risks for the sake of organizational benefits
* Appreciate people wherever possible
* Honesty
* Put other’s interest before your personal

Ethics:

Organization must leave cause of unethical behaviour and may manage ethical management program.
Quality Statement:

It includes vision statement: It’s what a corporation will seek to achieve in near future, mission statement: mission statement states that what’s the organization is all about, who are the consumer, the way it work etc. and the important one that’s Quality policy statement: it’s a type of guide for everyone in the organization to know the way to provide service and repair to the consumers.
Strategic planning:

Strategic planning is for about three to 10 years. It comprises of

* Goal and objectives: Goals are ultimate aim and objectives are intermediate checkpoints.
* Seven steps of strategic planning including consumer need, positioning, predicting future, gap analysis, alignment, closing the gap and implementation.
* Yearly quality improvement process

Communication:

Interactive form is best when communication is between workforce and immediate supervisor, formal communication includes printed and electronic communication which incorporates graph, posters etc. Feedback adds to the soundness of effective communication.
Decision making:

Here seven habits are highly efficient:

* Being proactive
* Keep the result within the mind
* Prioritizing
* Think “win/win”
* Try to know first than to be understood
* To be in race (sharpen the saw) and
* Synergy.

Leadership survey:

It is a tool to evaluate the leader’s performance.

Customer Satisfaction

Who are customers?

A person who employs the service or buys the product is commonly termed as consumer or customer. Two types of customers are identified by the purchasers: External and Internal.

* Internal customers are those lying inside the organization like engineering, order processing etc and
* The external customers are those who’re outside the organization and buy services and products of the organization.

Consumer perception of quality:

As the shopper’s need, expectation and values keep on changing, there isn’t any such picture of customer’s quality need. As in accordance with ASQ, survey, important factors for purchase for the client are:

* Features
* Performance
* Price
* Service
* Reputation and
* Warranty

Feedback:

TQM requires customer feedback to be continuously monitored. It’s required to identify costumer dissatisfaction, needs, opportunities for enhancement and comparison with substitute available in the market.

Methodology for feedback involves comment card, survey, focus group, toll free numbers, report card, internet, customer visits, employee feedback and using standard indexes like ACSI of “American Customer Satisfaction Index”. ASCI allow contrast in between company and industry averages.

Using customer Complaints:

Studies suggest that the client who didn’t complain is most prone to switch to another product. Every individual complaint is needed to be entertained. Results also suggest that half of the dissatisfied-customers will buy again in the event that they feel that their complaint had been addressed.

Service Quality:

Research means that elements of customer service are:

* Customer care: A firm must revolve around the purchasers.
* Communication: Communication with customers is crucial.
* Organization: Such that very same level of quality will be delivered to everyone.
* Front-line people: Only the very best employees needs to be allowed to speak with the purchasers.
* Leadership: Involvement of management is essential in any quality management process.

Translating needs into requirements:

Kano model is essentially the most basic conceptualization of customer requirement. There are three lines-red, blue and green to elucidate its ideology. The red line shows innovation, blue shows spoken and expected requirement and green line shows unspoken and expected requirements.

Kano model relies on an assumption that a customer buys when he needs something, however is it not completely true, a corporation must overflow the client needs. This can be understood by “Voice of the customer” concept.

Customer Retention:

It’s more powerful and efficient in company’s viewpoint as with customer satisfaction. It is involved with the activities which basically are related to customer satisfaction so as to increase the loyalty of the customers towards the company.

It moves customer satisfaction to next level by determining what is actually important for the customer.

Quality Management Systems

Quality Management Systems like the ISO are required to facilitate the exchange of products between customers and sellers across different nations worldwide.

Benefits of ISO Registration

* After the inclusion of ISO within the products, it was observed that a lot of the attributes of internal quality like scrap were measured to be better.
* The reliability of the production also increases as a matter of fact.
* Even the external qualities that were measured by customers were highly improved after the inclusion of ISO standards.
* The time performance of the system also increased vastly as a result of this.
* The price of producing poor quality also decreased after including ISO standards.

ISO 9001 Requirements

* Scope: ISO 9001 is crucial to meet the customer’s requirements such that customer satisfaction is attainable.
* Normative Reference: The basics and vocabulary provide the normative references.
* Terms and Definitions: Along with the usual terms and definition, the chain starting from supply to organization to customer is required within the terms and conditions.
* Quality Management Systems (QMS): The organizations should look to establish, document, implement, and maintain a QMS for effectiveness.
* Management Responsibility: ISO 9001 guarantees management control, customer focus, quality policy, planning, responsibility, and a review by the management at the overall level.
* Resource Management: This includes provision of resources, human resources, infrastructure, and a correct work environment in order to attain the goals.
* Product Realization: This section of ISO 9001 secures planning of product realization in response to the requirements of the QMS, customer related process, design and development, purchasing, production and repair provision, control and monitoring and measuring devices.
* Measurement, Analysis and Improvement: In general, the statistical technique and the extent of use should even be reasonable by the concept of ISO 9001. Under the monitoring and control there needs to be customer satisfaction, an internal audit, monitoring and measurement of processes and in addition products and services. This also includes control of nonconforming products, analysis of information, and improvement continuously by taking corrective and preventive action.

Implementation

The following important factor to grasp on this context is the implementation of the quality management system. This may be done in the following steps:

* Top Management Commitment: It is very essential that there is total support of the higher level authority of the organization.
* Appoint the Management Representative: After the highest management is contented with the procedure, it is vital that the proper representative is appointed in order to follow the standard system with care.
* Awareness: It is usually required at this point of time that the organization spreads awareness of the standard systems because it effects all who’re attached with the organization.
* Appoint an Implementation Team: Once the degrees are all made aware of the standard systems, the organization should form an implementation team such that it is kept visible to all the staff sooner or later.
* Training: All the above mentioned teams needs to be trained so as to provide the best results.
* Time Schedule: There ought to be a time schedule such that the activity is followed in the right time sequence and the outcomes expected of the implementation of the standard systems are achieved as desired.

The other processes to follow are selecting of the element owners, reviewing the current system, writing the document, installing the new system, internal auditing, and management review, pre-assessment and registration.
Documentation

One must appreciate the truth that the quality systems are meant to be recognized by all. This suggests that it is very important to have simplicity rather than complexity in understanding. It should follow the next four principles:

* Policy: This defines as to what could be done and why would that be so. This needs to be done extremely carefully as it’s the foundation of the documentation on which your entire quality system depends.
* Procedure: Next, one must decide the methods that can be required in order to attain the duty. It includes making decisions related to when the tasks are to be done etc.
* Work instructions: This provides the detail of the documentation. Based on the readings of the work instructions, the readers would come to know of the thought behind the standard systems.
* Records: So as to maintain an account of the actions on a specific product, it is required to keep the record.
* Document Development: In order to offer a correct document, it is required to assemble all of the policies, procedures, work instructions and forms which might be being used presently. This will form the premise of the brand new work.

Internal Audits

The purpose of internal audits may be seen as follows:

* It should compare the actual performance of the standard system with the one which had been documented.
* It will take the corrective measures for the same.
* All those items that were non compliant previously, could be followed
* It would offer continuous improvement through the feedback to the manager.
* It might also create an additional chance of improvement by generating a cause to think.

This internal audit could be done by the auditor by using the techniques of examining the documents and following the procedure of the audit plan.
Registration

If Quality systems are assessed by a third party called as a registrar, it’s known as registration.

A registrar is chosen based on the qualifications and experience, certificate recognition like approval from RAB, the registration process based on the organization’s needs under the time and cost constraints and the auditor’s qualifications.

It is essential to mention at this point that registration will not be a compulsion. It’s rather a provision such that the nonconformities are solved.

Benchmarking

Finally Benchmarking is finished to measure performance as a comparison with those adopted by the best organization in the industry.

Reason for benchmarking:

It is a tool to achieve competition and corporate goals. It’s a tool for organizations to scale back its weakness and to enhance its strengths. Benchmarking requires external orientation as it greatly reduces the uncertainty offered by global and external competition.

It is time and price efficient and provides working model of a better process.

The first weakness of benchmarking is attaining the most effective practices is just like catching a moving target. Key threat is continuously improving technology.
Process:

Organization that adopts benchmarking, take the method to adjust with the current culture and wishes. Six steps which might be crucial are as follows:

* Estimate present performance
* Decide what the organization can benchmark
* Apply a study on others
* Try to grasp form the info collected
* Plan
* And utilize the findings

Two famous industrial standards are those of Xerox and AT&T’s 12 step process. Let’s have a close discussion on the above headings.
Deciding what to benchmark:

Most organization has a technique to decide that which benchmarking strategy to adopt. This is mainly highlighted when it comes to vision and mission statement. These statements determine the “critical success factors”. Thus when deciding what to benchmark, it’s best to start with analyzing vision statement and demanding factors.
Understanding present performance:

To use benchmarking that requires applying outside policies in organization, it is essential to investigate own policies and performance first. Current performance might be understood by various methods similar to cause and effect diagram and flow diagram.

Exceptions must be identified. Units of measure must be determined and proper documentation is required here.
Planning:

After identification of process and documentation, next step is to plan the method to conduct the study. A team referred to as benchmarking team is needed to be selected. It’s the responsibility of the team to decide what kind of benchmarking is to be carried out. The team also prepares time-line for the method to decide the specified result from the study carried out.
Studying others:

Studies related to benchmarking concept seek two types of data. They’re details of best practices and results that can be measured from these practices. Information needed form others in benchmarking could also be present publicly and should not must research down. But there remain few things which might be tough to analyze form open sources. For these kinds of data, team can conduct site visits; questionnaire and might apply the focus group etc to find out the specified information.
Learning form data:

Benchmarking studies can reveal 3 basic sorts of outcomes like

* The results of external process’s supremacy over the interior process
* They could also be equal
* Internal process could be better than the founded and explored external process

On this analysis, important thing is parameters of judgement of the process.
Using the findings:

If the study of benchmarking standards reveal the gap between the interior process and the observed process in negative, the following task to bridge the duty by appropriate steps.
Pitfall and criticisms:

Most important pitfall is benchmarking is like copying others. Question here is how can a corporation become the perfect if it copies from the most effective? Innovation is lagging in benchmarking.

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