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Session 2

Recap of Lecture 1

Begin Module 1

Summary

Module 6

Vision and Mission Statements

Module 5

Qualities of a Leader

Module 4

Leadership for Quality

Module 3

Implementing Quality

Module 2

Recap of Lecture 1

Module 1

End of module 1

Session 2

How quality has evolved and is today a way to


conduct business
The contributions of the different gurus of
quality

In lecture 1 we discussed

Recap of Lecture 1

Session 2

Rajiv Gupta
BITS Pilani
August 2014
Lecture 2

The different ways in which quality is


interpreted by people
How quality is now determined by customers
as opposed to design or quality departments
Why quality is the responsibility of top
management, but requires involvement from
everyone in the organization

MMZG 522 Total Quality


Management

In lecture 1 we discussed

Recap of Lecture 1

Lack of management understanding and commitment


Lack of patience and persistence
Lack of training
Fear and lack of trust
Previous experience with similar undertakings
Organizational culture

Past attempts at TQM have had several issues


related to

TQM Implementation

As discussed in Lecture 1, Quality is the


responsibility of top management
It cannot be delegated to a quality department
Unless the top management understands quality
and their role, any effort to implement TQM will
be only a partial success
Quality has to be the way to run the business
and not a function in the organization

Quality and Leadership

Implementing Quality

Begin Module 2

Session 1

Time

Mastering the rhetoric


Grafting programs onto old organization
Knowing enough to be dangerous
The same old premises are at work

Competence

Incompetence

Unconscious

Conscious

The Competency Matrix

Point 3 Real learning begins

The A-ha experience


The beginning of the integration of knowledge and know-how

Point 2 Sufficient understanding to see that we dont


know much

Point 1 The illusion of learning

Introduction of New Approach

Introduction of The New


Approach

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Top Down
Personal understanding and commitment
Learn Use Teach Inspect (LUTI)
Cascading through the organization

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Flint, Michigan was the birthplace of General Motors and


at one time more than 80,000 people in Flint worked for
GM
By the 1990s, GM had closed several plants in Flint and
the total employment with GM had gone down
dramatically. Today it is below 10,000
In the early 1990s we had a movement to implement
TQM on a community-wide basis with participation from
the community leadership
Lack of commitment and persistence saw the effort die
out

Flint in the 1990s

From Prophets in the Dark, by David


Kearns

David Kearns Approach

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Xerox invented the xerographic process and had


more than 90% of the market share
Market share had plummeted to below 20% by
the early 1980s when David Kearns became
CEO
He had to do something dramatic or the
company may have gone bankrupt
He personally led the implementation of TQM in
Xerox and brought it back from the brink of
extinction

Xerox in the 1980s

Provide jobs
and more jobs

Improve
Quality

Stay in
business

Costs decrease because of


less rework, fewer mistakes,
fewer delays, snags, better
use of machine time and
materials

Productivity
improves

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Capture the market


with better quality
and lower prices

The Deming Chain Reaction

Leadership and Quality

Begin Module 3

Session 2

End of module 2

Session 2

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Be proactive
Begin with the end in mind
Put first things first
Think win-win
Seek first to understand, then be understood
Synergy
Sharpen the saw

7 Habits of Highly Effective People

Stephen Covey

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Common causes and special causes


Workers can only have an impact on the
special causes
Only management can make the changes
to remove common causes

Deming

Tests of processes, machines,


methods, costs

Consumer feedback
Suppliers of materials
and equipment
Receipt and test
Consumers
of materials
Production, Assembly, Inspection

Design and
Redesign

Stage 0
Generation of ideas

THE DEMING FLOW DIAGRAM

Phone calls
Meetings

Busy work

Planning
Relationship building
Preparation

Not Urgent

All One
Team

From Fourth Generation Management by Brian Joiner

Scientific
Approach

Quality

Brian Joiners Fourth


Generation Management

Improve the system


Distort the system
Distort the figures

Management by results

Third Generation

Management by direction

Second Generation

Management by doing

First Generation

Brian Joiners Fourth


Generation Management

Not Important

Important

Crisis
Deadlines

Urgent

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Quality Councils are set up to provide


overall organizational framework and
direction for the quality initiative
They usually include the CEO and senior
managers from different functional areas
and may have an internal/external coordinator and a facilitator

Quality Council

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Mid-level management is the conduit to


communicate the vision of top
management to the entire organization
Mid-level management is responsible for
the achievement of goals set out by top
management
Mid-level management also is a conduit to
communicate feedback from the line
workers to upper management

Role of Mid-Level Management

Provide commitment and direction


Be educated and provide for adequate
training
Be personally involved quality efforts
cannot be delegated
Provide resources
Provide encouragement
Do course correction, when needed

Role of the Top Leadership

Qualities of a Leader

Begin Module 4

Session 2

End of module 3

Session 2

Ensure that the vision, mission and quality policy are


defined
Develop long term quality objectives and goals
Create education and training plan
Establish projects, project teams, and performance
measures
Monitor progress and make course corrections, as
required

The role of the council is to

Quality Council

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Vision

Vision
Passion
Courage to fail and learn from failures
Be a role model
Ethical behavior
Strong customer focus

A leaders passion can and should be


contagious
Passion cannot be faked
Passion provides energy for the
organization
Passion is not mere cheerleading, but
cheerleading helps

Passion

A dream of the organizations future


Vision has to be inspirational but, at the
same time grounded in reality
Vision is nothing if not shared

Qualities of a Leader

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Moral strength is necessary as it


determines the work culture in the
organization
If the leader says, Do this, I dont care
how then the others in the organization
will develop methods that could be
unethical
The leader needs to walk the talk

Ethics

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The people in the organization should look


up to the leader
Most people gain from a role model. It is
better that the leader be that role model.
In some organizations, promotion to the
top levels is contingent on the person
being a role model

Be a Role Model

Courage to take risks and to encourage


others to take risks
Ability to learn from mistakes
Courage is not freedom from fear rather
it is carrying on despite being afraid
because it is the right thing to do
Courage to take unpopular decisions

Courage

End of module 4

Session 2

Henry Ford I, in My Life and My Work

Instead of giving attention to competitors or to demand,


our prices are based on an estimate of what the largest
possible number of people will want to pay, or can pay,
for what we have to sell.

The leader should reflect a strong


customer focus so that the organization
also becomes customer-centric
Customer focus is necessary in todays
competitive market

Strong Customer Focus

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"PepsiCo's responsibility is to continually improve all aspects of the


world in which we operate - environment, social, economic - creating a
better tomorrow than today. Our vision is put into action through
programs and a focus on environmental stewardship, activities to
benefit society, and a commitment to build shareholder value by
making PepsiCo a truly sustainable company."

PepsiCo

"Our [Amazon's] vision is to be earth's most customer centric company;


to build a place where people can come to find and discover anything
they might want to buy online.

Amazon

Vision Statements

Henry Ford I, in My Life and My Work

Gods great open spaces

I will build a motor car for the great multitude. It will be large enough for
the family but small enough for the individual to run and care for. It will
be constructed of the best materials, by the best men to be hired, after
the simplest designs that modern engineering can devise. But it will be
so low in price that no man making a good salary will be unable to own
one and enjoy with his family the blessings of hours of pleasure in

Vision What an organizations aspires to


be in the future

Vision

Vision and Mission Statements

Begin Module 5

Session 2

End of module 5

Session 2

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Top management alone can bring about


systemic changes required to bring about
improvement in common causes. Exhortation of
workers will not yield results
Vision is a very key ingredient in organizations.
However, most companies tend to have vision
statements as opposed to shared visions

Summary of Lecture 2

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Shared values
Shared future

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Summary of Lecture 2

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Implementing Quality and other initiatives


requires clear understanding and commitment
from the top leadership of the organization
Quality is not, and should not be treated as,
another fad. Otherwise people lose faith in other
initiatives as well
The role of leadership is to facilitate and lead the
process, not be mere cheerleaders quality is a
business imperative and cannot be delegated

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Summary

Begin Module 6

Session 2

What is the difference between a vision an


a vision statement?
Whose vision hangs in the company
lobby?
Vision vs. Shared Vision

What does a Vision or Mission


Statement Mean

To meet customers transportation and distribution needs by being the best


at moving their goods on time, safely and damage free Canadian National
Railway

"Our Roadmap starts with our mission, which is enduring. It declares our
purpose as a company and serves as the standard against which we
weigh our actions and decisions.
To refresh the world...
To inspire moments of optimism and happiness...
To create value and make a difference." From the Coca-Cola corporation

Mission describes the purpose and the


reason for existence of an organization

Mission

End of module 6

Session 2

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