Chapter 2: LEADERSHIP
In fact the management is
1. Define TQM
2. Know the Elements of TQM
3. Know the Deming’s 14 points for top
management
4. Understand the tem strategies for top
management.
The most important prerequisite to practice TQM
is that senior management should firmly believe that
TQM is the only way to do business and manage the
organization and that TQM would lead the
organization prosperity in the long run.
The top management should also have faith in the
following to build quality values in the organization:
1. Customers are the only reason for being in
business and hence they should be delighted
2. Zero defects is possible to achieve
3. Teamwork results to a win-win situation
4. CEO has to lead the quality management
5. Proper communication is essential
6. Continuous improvement is needed in
processes.
TOTAL QUALITY MANAGEMENT
 “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” – ISO 9000.
 It is a management approach for the entire
organization led by the CEO, the
involvement of all the employees in the
continuous process improvement is one of its
goals.
 Also referred as Total Quality Control –
(TQC); Company Wide Quality Control
(CWQC).
ELEMENTS OF TQM
1. Constancy of purpose/ long-term
commitment
2. Focus on process
3. Quantitative methods
4. Continuous process improvement
5. Supplier partnership
6. Customer focus
7. Leadership
8. Total employee involvement/team work
9. Training
Leadership for TQM
According to quality gurus, we gather that the
higher echelons of management has an important
role to play for TQM.
solely responsible for the success of TQM as it is
responsible for selecting people, forming teams,
providing resources and establishing the system in
the organization.
DEMING’S 14 Points for Top Management
Edwards Deming
 An American quality expert.
 Considered as father figure of TQM.
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 goals.
 It will infuse constant quest for innovation,
improvement of processes, product and
services.
Adapt the new philosophy
 The new philosophy means elimination of
wastes, delays and radically changing the
work culture.
 The new philosophy means Just-in-time
manufacturing is possible with zero defect.
Cease dependence on mass inspection
 Doing things right and doing it right the first
time would reduce the dependence on
inspection, in fact it would be eliminate.
 TQM is aimed at eliminating inspection in
the long run through prevention.
End the practice of awarding business on the
basis of price tag alone
 This point addresses supplier partnership.
 The supplier should be selected on the basis
of the following 4 parameters:
1. Quality
2. Price
3. Delivery
4. Service
 Therefore price alone should not be the
criterion for the selection of supplier.
Constantly improve the system of production and
services
 TQM is aimed at continuous improvement of
process so that the quality of products and
service improve continuously.
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 Institute Training
 The abilities of employees should be
improved and harnessed only through
training.
 Management needs training to learn about the
organization, all the way from incoming
material to the customer.
Adopt and Institute of Leadership
 The senior management must conduct
themselves as leaders rather that managers.
 Deference between the two:
Leader Manager
Proactive Reactive
Coaches Finds fault
Understand process Doesn’t care to understand
Moves around Sits in his chair
Improves process Maintains process
Communicates frequently Communicates rarely
Seeks suggestions questions
Drive out Fear
 Employees should be encouraged to suggest
improvements and new ideas, ask questions
about the existing process.
 If freedom to express new ideas is curtailed,
then employees will continue to do what they
are doing.
Break down barriers between staff areas
 Quite often, the various teams in the
organization stop communicating with each
other’s. The teams, over the years become
watertight compartment. Every team may
prove that it is the best.
 An organization as a whole may be doing
poorly due to lack of communication.
Eliminate Slogan, Exhortation and targets for
work force.
 They only generate frustration and
resentment among workers. The best strategy
for improvement is to correct defects in the
system, not slogans and poster.
Eliminate numerical Quota for work force and
Eliminate numerical goals for people in the
management.
 Setting a target for production, say producing
1000 units per shift etc., may affect the
quality of workmanship.
 This forces the worker to ignore quality and
concentrate on quantity.
Remove barriers that rob people of pride of
workmanship.
 The organization should establish the right
processes and a proper system for quality
management. This will lead to carried out
jobs correctly.
 If the work is carried out correctly, it gives
pride to those who did.
Encourage education and self-improvement for
every one
 Employees should be encouraged to pursue
higher education and training while service,
for improving the skills or updating
knowledge.
 If an employee undergoes education or
training, I will improve his ability which will
be beneficial to the organization.
Take action to accomplish the transformation
 The top management should understand the
above 13 points and then enable their
employees to understand them. They should
interpret the 13 points properly and educate
their employees appropriately.
 It is about the implementation of the 13
points.
TEN STRATEGIES FOR TOP MANAGEMENT
1. Proactive management
2. Adventurous and bold change management
3. Do it right first time (DRIFT)
4. Continuous preventive Action
5. Care for little things and accumulate gains
6. Ensure economic performance
7. Practice manage by walking around
8. Measure success
9. Never rest on laurels, continue to improve
10. Build a virtual organization
Proactive Management
 The leaders should be proactive
 They have to foresee what will happen in the
future and take advance action to prevent the
occurrence of the problems as prevention is
always better than cure.
o Proactive management need proper
system
 The problem can be identified
before occurring, only if there
is a proper system in the
organization
o TQM calls for proactive management
 TQM envisages taking
preventive actions so that
mistakes do no occur.
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Adventurous and bold change management
 Nobody likes change
o Human being by their very nature
resist change.
o Even, if a change is going to make
them much more comfortable, they
may not agree to it straightaway.
 Change is essential
o An organization cannot progress
without change. It has to continuously
change for better
o There should be an ongoing-
rethinking and restructuring of the
organization, so that the organization
is receptive to the need of the
customer.
 Be adventurous
o Successful people are those who have
taken the challenges and grown
beyond expectations
o This calls for adventurous decision –
making and high self-esteem among
the senior management.
 Be bold
o The other prerequisite for change
management are boldness, self-
confidence or self-esteem.
o Boldness is very essential for making
bold decision for improvement, based
upon the study and analysis of current
practices systems in the organization.
 Role of the CEO for adventurous and bold
management
o Lime may other aspects, the
adventurous and bold change
management depends on the
personalities of the CEO.
o The CEO in addition to his own bold
initiatives, should support innovative
change management initiated by his
employees.
 He should motivate and
encourage his colleagues to
change the unproductive
system.
DIRFT - Do It Right First Time
 Making business decision the leaders should
carry pout the following sequence of
activities.
o Plan the decision – Weigh the pros
and cons
o Foresee the impact of the decision on
the organization
o Take opinion of the right people
o Involve the concerned (employess
who will be affected by the decision)
o Implement the decision
o Persist
 Why people don’t do it right the first time?
o The employees does not know what
to do clearly, leave alone how to do
o If he knows how to do, he not
motivated enough to do it right the
first time
o He may not have the right tools to do
a good job
o He does not have the necessary
education or training to know how to
DRIFT.
o Probably his seniors have trained him
to do it the wrong way
o He is not proud of the job he is doing
o He does not get appreciated when he
does it right.
 Problems of not doing it right
o In some cases, not doing it right the
first time may result in not doing it
right ever, thereafter.
o Leads to unnecessary expenditure
o Increases the failure cost
o Demotivates employees
o Causes hassles to employees and
customer
o Bring down the reputation of the
organization
o Leads to schedule slippages
o Increases scraps leading to more cost
on account of storage, accounting,
disposal, etc.
o Forces the organization to buy
additional components to take care of
defects in the process
o The productivity gets affected
 The top management should carry out the
following for DRIFT to become reality
o Define the requirement for each
employees
o Provide the wherewithal to achieve
the requirement
o Keep on motivating and encouraging
the employees.
 Right the first time and every time
o The “it’ refers to every activity in the
origination.
o It is not only in making of the final
product or service, but also, many
things done by employees in their
organization on daily basis.
 They should do only the right
things – right first time and
every time.
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  Set right goals
o It is essential for every organization
to set right objectives towards which
the organization should be moving
 Select right personnel
o The whole process of recruitment
starting from advertisement,
conducting interviews, should aim at
selecting the right personnel for the
right job.
 Establish right process
o Organizations should establish a right
process, which is very essential.
o If the right process is not selected,
how can we expect the right product?
 Therefore the company has to
necessarily invest time,
energy, money and right team
of employees for identifying,
establishing and
commissioning the right
process.
 Choose durable raw material
o Materials can be converted into
product only though right process,
therefore without the proper raw
materials, expecting quality would be
farce.
 Choose right machinery
o The process consist of people,
machinery, materials and methods,
out of which machinery generally is
very expensive.
 Therefore machinery should
be selected properly so that
the production can stat form
day one.
Continuous Preventive Action
 Corrective active is a post-mortem
o Corrective action – when a product or
services is delivered, If the customer
finds defects or faces problems. Then
the deficiencies are registered and
corrected by the organization.
 Prevention is better than cure
o There are two ways of handling a
problem, one is to cure it and the other
is to prevent it.
 One shot prevention is not good enough
o Preventive action have to be
continuous and should cut across all
section in the organization.
Care for little things and accumulate gains
 TQM is continuous process improvement
program and aims at one step at a time. Therefore
management should aims at scaling greater
height through small and continuous
improvement in every process.
 Caring for small things
o While efforts will be made to maintain
sophisticated and expensive machinery
and equipment, the same care may not be
taken of small things such as accessories,
jigs and tools.
 Communicate with junior employees
o No doubt, overall economic performance,
strategies, quality council meeting, visit
of customer are all important, but at the
same time, the junior most employees are
also equally important, hence the senior
management should establish a channel
of communication.
 Keep on accumulating
o Small grains accrued due to conscious
initiatives by the management should be
accumulated.
o These small rewards will be more
permanent than the bigger gains attained
all of a sudden.
Ensure economic performance
 While marching on the TQM path, the CEO
should not lose track of the economic
performance of the organization.
 All TQM activities should lead to better
economic performance in the long run
 The goals of an organization should be higher
Return of Investment (ROI), as economic
performance is one key measures of success
of every organization on their journey
towards TQM.
 Quality should increase productivity also
o Improving quality for customer
satisfaction should definitely lead to
increase in overall productivity.
 Talk about success in economic performance
o There is no harm I manager taking
about their achievement and feeling
proud.
 Stakeholder will understand economics
better
o The motivation of employees depend
many factors like personal
development, happiness, sense of
fulfillment, security and
achievement.
o Economic performance is clear
indicator of the health of the
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 organization, thus it motivate the
customers to do business with the
organization
o The suppliers too would like to
supply only those firms which are
economically sound.
Management by walking around (MBWA)
 It is an unannounced visit of the CEO to
various work spots for getting direct and
firsthand information, from the employees,
the customers and suppliers.
 MBWA is not “State visit” – is an announced
visit by the CEO accompanied by all the
deputies in line and is a formal visit.
 this had to be carried out in random
 The CEO goes to various work spots and talk
to the employees about what they are doing,
how they are doing, what are their problems,
what help they require and so on.
 What is done during MBWA?]
o Thee major activities
 Listening
 Teaching
 Facilitating
 Barriers to practicing MBWA
o The problem mainly occurs because
MBWA appears to violate the chain
of command. The first line
supervisors feel agitated about the
idea that information direct reaches
the CEO.
Measure Success
 Measuring success primarily involves,
looking for, measuring and analyzing the
feedback form the customer, either internal or
external.
 The measurement should cut across 3P
o Process
o Personnel
o Products
 Plan for measuring success
o In the planning stage, the
organization should identify the
various measure for success.
o Some of the common measure for
service industries are:
 Planned delivery time and
actual delivery time
 Repeat customers
 Productivity
 Return of investment
 Customer complaints
 The Do Phase of measuring
o At this stage, the identified
measurements should be carried out
on trial basis with direction form the
quality council
 Study phase of measuring
o The organization should experiment
with the proposed measures for about
two to three months after they should
discuss and see whether they need to
carry out any changes in the
measures.
 The act phase of measurement
o In this phase the measure and
methods of measurements are
confirmed
o The organization starts making
measurements. Measure for success is
a continuing activity.
Never rest on past laurels, continue to improve
 The tale of tortoise and rabbit. - Slow and
steady wins the race and over-confidence can
lead to failure.
 The need to improve continuously
o An organization should aim at
doubling the every two years, without
additional manpower or machinery.
o Such growth rate is achievable
primarily due to two factors:
 Cutting down the costs by
doing right things, right the
first time
 A higher output of motivated
employees though extensive
training.
Build virtual organization
 Gone are days when vertical integration was
preferred strategy, but the situation has
changed now. A smarter way of doing
business is to create a near virtual
corporation
o Here, the core part is manufactured
and the rest bought from qualified
vendors. This has been found to be
highly effective and profitable.
 Vertical integration
o These are two extremes of
manufacturing.
 Everything, from the raw
materials to final is
manufactured under one roof.
 The other extreme is buying
everything from others and
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 putting them together and
selling the assembled product.
o It means that whatever sub-unit,
components/ materials, fixtures, etc.
Needed for manufacturing a product
are all manufactured by the same
organization.
 Requirement of Virtual Enterprise
o Identify the most critical parts
o Identify the other parts
o Develop/identify vendors for the
other parts
o Continuously increase sub-
contracting.
 Identify the most critical parts
o The critical pats should be vital few
from the many trivial parts, which are
the core or nucleus for the product of
services.
o The strength of the organization
should lie in developing and
manufacturing the critical parts, in the
most competitive manner.
 Identify other parts
o The company should do a market
survey and identify all those suppliers
who can deliver them with a quality
and competitive prices and schedules
 Develop/identify vendors for the other parts
o It is very important to concentrate on
developing good vendors, rather than
trying to carrying out vertical
integration.
o The task of the organization is to
identify good vendors and enter into
an agreements or contract, so they
will be able to get the materials of the
right specification just in time and
with zero defects.
 Continuously increase sub-contracting
o The organization should try sub-
contract more and more items,
retaining the core of the system for its
own manufacturing.
o The aim is to sub-contract as possible
 This will reduce the time,
energy, money, and
infrastructure to do better in
business day to day
 The goal of virtual corporation is to shed the
unnecessary manufacturing activity for
earning more profits.

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