semester iii assgn i total quality management

8/9/2019 Semester III Assgn I Total Quality Management

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Assignment 1

TOTAL QUALITYMANAGEMENT

(5575)MBA Executive

ZAHID NAZIRRoll No. AB523655Semester: Autumn 2009


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Question 1a). Explain how each of the following relates

to quality:

Delivery TimeTime to get the product to market

Responsiveness to changes in the

market place

Low cost

(10)

b). What is the quality imperative

(10)


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People define quality in many ways. Some think of quality as superiority orexcellence, others view it as a lack of manufacturing or service defects, still

others think of quality as related to product features or price. Followings are

some of many ways to look at quality.

1. perfection

2. consistency

3. eliminating waste

4. speed of delivery

5. compliance with policies and procedures

6. providing a good, usable product

7. doing it right the first time

8. delighting or pleasing customers

9. total customers service and satisfaction

Today most managers agree that the main reason to pursue quality is to

satisfy customers. The American National Standards Institute (ANSI) and the

American Society for Quality (ASQ) define quality as:

the totality of features and characteristics of a product or service that

bears on its ability to satisfy given needs.

The view of quality as the satisfaction of customer needs is often called

fitness for use. In highly competitive markets, merely satisfying customer

needs will not achieve success. To beat the competition, organizations often

The Concept of Quality


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must exceed customer expectations. Thus, one of the most popular

definitions of quality is meeting or exceeding customer expectations.

Why Focus on Quality?

To understand total quality, one must first understand quality. Customers of

businesses will define quality very clearly using specifications, standards, and

other measures. This makes the point that quality can be defined and

measured. Although few consumers could define quality if asked, all know it

when they see it. This makes the critical point that quality is in the eye of the

beholder. With the total quality approach, customers ultimately define

quality.

People deal with the issue of quality continually in their daily lives. We

concern ourselves with quality when grocery shopping, eating in a

restaurant, and making a major purchase such as an automobile, a home, a

television, or a personal computer. Perceived quality is a major factor by

which people make distinctions in the market place. Whether we articulate

them openly or keep them in the back of our minds. We all apply a number

of criteria when making a purchase. The extent to which a purchase meets

these criteria determines its quality in our eyes.

One way to understand quality as a consumer-driven concept is to consider

the example of eating at a restaurant. How will you judge the quality of the

restaurant? Most people apply such criteria as the following:

Service

Response time

Food preparation


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Environment/atmosphere

Price

Selection

The example gets at one aspect of quality the results aspect. Does the

product or service meet or exceed customer expectations? This is a critical

aspect of quality, but it is not the only one. Total quality is a much broader

concept that encompasses not just the results aspect but also the quality f

people and the quality of processes.

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b).

Cheaper, faster, better and zero defects are todays quality imperatives.

Organizations that use programs such as Six Sigma think in terms of 3.4

defects per one million parts. In north America, we like to think that our

quality is superb and that of other manufacturing countries is lacking. This

was an attitude that existed about Japanese manufactured goods-until theJapanese gained control of many of our markets (bicycles and motorcycles,

electronics, video and audio equipment) and after considerable persuasion,

agreed to use voluntary restraints to keep from over shipping and over

selling automobiles in Canada and the United States. Currently countries

Quality Imperative


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like India are gaining considerable footholds in the computer and data

processing fields. The moral is that if domestic companies are not willing to

provide what the customer wants at a price the customer is willing to pay,

there are many organizations in both the developed and the developing

world that will be glad to sell to those markets and customers instead.

Quality imperatives like cheaper, faster, better and zero defects can be

obtained by following the quality management principles.

Quality Management Principles

A quality management principle is a comprehensive and fundamental

rule / belief, for leading and operating an organisation, aimed at

continually improving performance over the long term by focusing on

customers while addressing the needs of all other stake holders".

The eight principles are:

1. Customer-Focused Organization2. Leadership3. Involvement of People4. Process Approach5. System Approach to Management6. Continual Improvement7. Factual Approach to Decision Making8. Mutually Beneficial Supplier Relationships.

1. Customer-Focused Organisation :

"Organisations depend on their customers and therefore should understand

current and future customer needs, meet customer requirements and strive

to exceed customer expectations".
http://www.globalqualityvillage.com/qmprinciples.php#p01http://www.globalqualityvillage.com/qmprinciples.php#p02http://www.globalqualityvillage.com/qmprinciples.php#p03http://www.globalqualityvillage.com/qmprinciples.php#p04http://www.globalqualityvillage.com/qmprinciples.php#p05http://www.globalqualityvillage.com/qmprinciples.php#p06http://www.globalqualityvillage.com/qmprinciples.php#p07http://www.globalqualityvillage.com/qmprinciples.php#p08http://www.globalqualityvillage.com/qmprinciples.php#p08http://www.globalqualityvillage.com/qmprinciples.php#p07http://www.globalqualityvillage.com/qmprinciples.php#p06http://www.globalqualityvillage.com/qmprinciples.php#p05http://www.globalqualityvillage.com/qmprinciples.php#p04http://www.globalqualityvillage.com/qmprinciples.php#p03http://www.globalqualityvillage.com/qmprinciples.php#p02http://www.globalqualityvillage.com/qmprinciples.php#p01


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2. Leadership :

"Leaders establish unity of purpose and direction of the organisation. They

should create and maintain the internal environment in which people can

become fully involved in achieving the organisation's objectives."

3. Involvement of People :"People at all levels are the essence of an organisation and their full

involvement enables their abilities to be used for the organisation's benefit".

4. Process Approach :

"A desired result is achieved more efficiently when related resources andactivities are managed as a process."

5. System Approach to Management :

"Identifying, understanding and managing a system of interrelated processes

for a given objective improves the organisation's effectiveness and

efficiency."

6. Continual Improvement :

"Continual improvement should be a permanent objective of the

organisation."

7. Factual Approach to Decision Making :

"Effective decisions are based on the analysis of data and information."

8. Mutually Beneficial Supplier Relationships :

"An organisation and its suppliers are interdependent, and a mutually

beneficial relationship enhances the ability of both to create value."


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References:

Total Quality Management AIOU

www.mindstool123.com

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http://www.mindstool123.com/http://www.mindstool123.com/


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Question 2a). Mintzbergs research indicates that there

are three categories of roles of leaders, thesecan be described in terms of 10 specific

quality roles. Explain each of them.

(10)

b). Differentiate between Leaders andManagers.

(10)


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a).

Mintzbergs (1971) observations indicated that managers (leaders) behaviors

can be classified into three basic categories i.e.

i. Informational

ii. Interpersonal

iii. Decisional

Mintzbergs Ten Management Roles are a complete set of behaviors or roleswithin a business environment. Each role is different, thus spanning the

variety of all identified management behaviors. When collected together as

an integrated whole (gestalt), the capabilities and competencies of a

manager can be further evaluated in a role-specific way.

The Ten Management Roles

MINTZBERG's RESEARCH


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The ten roles explored in this theory have extensive explanations which arebriefly developed here:

1. Figurehead: All social, inspiration, legal and ceremonial obligations.In this light, the manager is seen as a symbol of status and authority.

2. Leader: Duties are at the heart of the manager-subordinaterelationship and include structuring and motivating subordinates,

overseeing their progress, promoting and encouraging their

development, and balancing effectiveness.

3. Liaison: Describes the information and communication obligations ofa manager. One must network and engage in information exchange to

gain access to knowledge bases.

4.Monitor: Duties include assessing internal operations, a departmentssuccess and the problems and opportunities which may arise. All the

information gained in this capacity must be stored and maintained.

5. Disseminator: Highlights factual or value based external views intothe organisation and to subordinates. This requires both filtering and

delegation skills.

6. Spokesman: Serves in a PR capacity by informing and lobbying othersto keep key stakeholders updated about the operations of the

organisation.

7. Entrepreneur: Roles encourage managers to create improvementprojects and work to delegate, empower and supervise teams in the

development process.


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8. Disturbance handler: A generalist role that takes charge when anorganisation is unexpectedly upset or transformed and requires

calming and support.

9. Resource Allocator: Describes the responsibility of allocating andoverseeing financial, material and personnel resources.

10.Negotiator: Is a specific task which is integral for the spokesman,figurehead and resource allocator roles.

As a secondary filtering, Mintzberg distinguishes these roles by their

responsibilities towards information. Interpersonal roles, categorized as thefigurehead, leader and liaison, provide information. Informational roles link

all managerial work together by processing information. These roles include

the monitor, the disseminator and the spokesperson. All the remaining roles

are decisional, in that they use information and make decisions on how

information is delivered to secondary parties.

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b).

Leader can be defined as

A leader is a person who guides others toward a common goal,

showing the way by example, and creating an environment in which

other team members feel actively involved in the entire process.

A leader is not the boss of the team but, instead, the person that is

committed to carrying out the mission of the Venture. Below are somequalities a strong leader may possess. Some of the leader qualities are:

Good Listener:

Your teammates may have a great way to improve your idea. By keeping your mindopen to other ideas, you can come up with new ways to accomplish your goals. It is

your job to make sure that everyone in the group is being heard. Listen to theirideas and accept their constructive criticisms.

Focused:

Constantly remind yourself and the group of your Ventures goals and mission. Ifyou stay on track and keep others on track, the team will stay motivated and bemore productive. As leader of the group, it is important that you schedule time tomeet with your Venture Team to establish and check-in about the goals you hopeto achieve.

Organized:

A leader can set the tone for the team. A leader who is organized helps motivateteam members to be organized as well.

Available:As a leader, youre responsible for a lot and youre probably going to be very busyat times. However, you still need to find time to talk with your team. A good wayto do this is to set frequent group meetings, so that no question or concern goestoo long without attention.

LEADERS vs MANAGERS


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Include others:

A leader should not do all the work. Doing everything yourself is a poor use of timeand prevents your Venture from growing. Instead, a leader should work withhis/her teammates and learn how to delegate responsibility while being mindful of

everyones interests, goals, and strengths.Decisive:

Although an important part of being a leader involves listening to the peoplearound you, remember that you are not always going to be able to reach acompromise. When this happens, dont be afraid to make the final decision, even ifsome team members disagree with you.

Confident:

This could be the most important characteristic of a leader. If you dont believe inyourself and the success of your Venture, no one else will. Show others that youare dedicated, intelligent, and proud of what you are doing.

Whereas Manger can be defined as

An individual who is in charge of a certain group of tasks, or a certain

subset of a company.

A manager often has a staff of people who report to him or her. As an

example, a restaurant often have a front of house manager who helps the

patrons and supervises the hosts. In addition, a specific office project can

have a manager, known simply as the project manager. Certain departments

within a company designate their managers to be line managers, while other

known as staff managers depending upon the functionality of the

department.


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Managers and Leaders - Comparison of TraitsDefinition:

Managers . . . Leaders . . .

are analytical, structured,controlled, deliberate and orderly

are experimental, visionary, flexible,unfettered and creative

Primary Problem-Solving Method:Managers . . . Leaders . . .Use the power of the logical mind use the power of intuition

Competitive Strategy/Advantage Focus:

Managers . . . Leaders . . .Concentrate on Strategy Nurture CultureConsider Dangers Sense OpportunityFollow Versions Pursue VisionsIsolate CorrelateDetermine Scope of Problems Search for Alternative SolutionsSeek Markets Serve PeopleThink Rivals / Competition Think Partners / CooperationDesign Incremental Strategies Lay Out Sweeping StrategiesCorrect Strategic Weaknesses Build on Strategic Strengths

Organizational Culture/Capability:

Managers . . . Leaders . . .

Wield Authority Apply InfluenceSeek Uniformity Pursue UnityAdminister Programs Develop PeopleFormulate Policy Set ExamplesInstruct InspireManage by Goals / Objectives Manage by InteractionControl EmpowerEasily Release Employees Would Rather Enhance EmployeesEmploy Consistency Elicit Creativity

External/Internal Change:

Managers . . . Leaders . . .Yearn for Stability Thrive on CrisisDuplicate OriginateFasten Things Down Unfasten ThemDrive Toward Compromise Work to PolarizeSee Complexity See Simplicity

React Proactive


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Plan ExperimentReorganize RedevelopRefine Revolutionize

Individual Effectiveness Style:

Managers . . . Leaders . . .Ask How (Seek Methods) Wonder Why (Seek Motives)Think Logically Think LaterallyPerpetuate Hierarchies Strive for EqualityAre Skeptical Are OptimisticPlan Around ConfrontTake Charge Encourage DelegationLike Formality Prefer InformalityVenerate Science Revere ArtPerform Duties Pursue Dreams

Bottom-Line Performance/Results:

Managers . . . Leaders . . .Scrutinize Performance Search for PotentialAre Dependent Are IndependentCompensate People Satisfy ThemConserve Assets Risk Them

Pursue the Tangible Seek the IntangibleInhabit the Present Reside in the FutureConcentrate on Short-term Results Seek Long-term ResultsWant Good Demand Better

Examples:

Managers . . . Leaders . . .Henry Ford, Ford Motor Company Ray Kroc, McDonald'sHarold Geneen, ITT Walt Disney, Disney StudiosJohn Akers, IBM Ross Perot, EDS and Perot Systems

Tom Landry, Dallas Cowboys Ted Turner, Turner BroadcastingCharles Knight, Emerson Electric Steven Jobs, Apple ComputerGeorge Bush, President of the U.S. Bill Clinton, President of the U.S.

References:

www.genv.net

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http://www.genv.net/http://www.genv.net/http://www.genv.net/


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Question 3a). What is Customer Relationship

Management? Why is the concept important

to two different organizations, one that is a

purchaser and the second a supplier of the

services?

(10)

b). What assistance can a company expectfrom its partners?

(10)


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Customer relationship management (CRM) is a term applied to processes

implemented by a company to handle its contact with its customers. CRM

software is used to support these processes, storing information on current

and prospective customers. Information in the system can be accessed and

entered by employees in different departments, such as sales, marketing,

customer service, training, professional development, performance

management, human resource development, and compensation. Details on

any customer contacts can also be stored in the system. The rationale behind

this approach is to improve services provided directly to customers and to

use the information in the system for targeted marketing.

Customer Relationship Management can be defined as:

Customer relationship management (CRM) is a business strategy toacquire and manage the most valuable customer relationships. CRM

requires a customer-centric business philosophy and culture to support

effective marketing, sales and service processes. CRM applications can

enable effective customer relationship management, provided that an

enterprise has the right leadership, strategy and culture.

As is implicit in the above definition, the purpose of CRM is to improve

marketing productivity. Marketing productivity is achieved by increasingmarketing efficiency and by enhancing marketing effectiveness. In CRM,

marketing efficiency is achieved because cooperative and collaborative

processes help in reducing transaction costs and overall development costs

for the company. Two important processes for CRM include proactive

CUSTOMER RELATIONSHIP MANAGEMENT


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customer business development and building partnering relationship with

most important customers. These lead to superior value creation. The basic

concept is that the customer is not someone outside the organisation, he is a

part of the organization.

Purpose of CRMCRM, in its broadest sense, means managing all interactions and business

with customers. This includes, but is not limited to, improving customer

service. A good CRM program will allow a business to acquire customers,

service the customer, increase the value of the customer to the company,

retain good customers, and determine which customers can be retained or

given a higher level of service. A good CRM program can improve customer

service by facilitating communication in several ways:

Provide product information, product use information, and technical

assistance on web sites that are accessible 24 hours a day, 7 days a week.

Identify how each individual customer defines quality, and then design a

service strategy for each customer based on these individual requirements

and expectations.

Provide a fast mechanism for managing and scheduling follow-up sales calls

to assess post-purchase cognitive dissonance, repurchase probabilities,

repurchase times, and repurchase frequencies.

Provide a mechanism to track all points of contact between a customer and

the company, and do it in an integrated way so that all sources and types of

contact are included, and all users of the system see the same view of thecustomer (reduces confusion).

Help to identify potential problems quickly, before they occur.

Provide a user-friendly mechanism for registering customer complaints

(complaints that are not registered with the company cannot be resolved,

and are a major source of customer dissatisfaction).


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Provide a fast mechanism for handling problems and complaints

(complaints that are resolved quickly can increase customer satisfaction).

Provide a fast mechanism for correcting service deficiencies (correct the

problem before other customers experience the same dissatisfaction).

Use internet cookies to track customer interests and personalize productofferings accordingly.

Use the Internet to engage in collaborative customization or real-time

customization.

Provide a fast mechanism for managing and scheduling maintenance, repair,

and on-going support (improve efficiency and effectiveness).

The CRM program can be integrated into other cross-functional systems and

thereby provide accounting and production information to customers whenthey want it.

Why CRM is necessary?

Several companies are turning to customer-relationship management

systems and strategies to gain a better understanding of their customer's

wants and needs. Used in association with data warehousing, data mining,call centers and other intelligence-based applications, CRM "allows

companies to gather and access information about customers' buying

histories, preferences, complaints, and other data so they can better

anticipate what customers will want. The goal is to instill greater customer

loyalty." Other benefits includes:

Faster response to customer inquiries.

Increased efficiency through automation.

Deeper understanding of customers.

Increased marketing and selling opportunities.

Identifying the most profitable customers.


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Receiving customer feedback that leads to new and improved products or

services

Importance of Customer-Supplier Partnerships

In order for partnerships or strategic alliances to persist, both the customer

and supplier must see and obtain benefits. The ideal partnership is one

where partners complement each other, with each one contributing from an

area of strength and receiving support in areas where they are weaker. Some

explicit benefits usually sought in alliances are:

Cost and Time saving: The just in time (JIT) supply arrangements now

common in the automotive industry, where parts are delivered to the

production line just as they are needed for assemblies, is a good example

where a partnership between supplier and customer leads to significant

saving. Committing to an agreed quantity of parts on an agreed JIT schedule

allows for the reduction of inventories, both at the auto plant and at the

parts manufacturer and both gain benefits from reduced investment in

inventory. To be effective, these JIT alliances requires a high degree of

mutual trust, even to the extent of sharing confidential company data on

matters such as production plans.

Improved Products or Services: A strong alliance leads to a sharing of

technology and expertise, which leads to improved products for both the

supplier and, eventually the customer. An extreme example of alliances

where technological advances have changed old patterns is illustrated by

NIKE, the worlds dominant provider of athletic shoes. This company has

evolved to become world class in design of shoes and in marketing and

transfer his technology to other and now NIKE hardly manufacturer any


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shoes itself. Through highly integrated alliances, NIKE outsources all

manufacturing to more specialized and expert suppliers.

Improved Suppliers: Suppliers benefit from strategic alliances through the

support and expertise of their customers, as well as from the pressure for

continuous improvement which inevitably comes from their customers.

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b).

Role of Partners in CRM

From a companys perspective, partners for a company are their suppliers who are

providing products and services to the company. In order for partnerships or

strategic alliances to persist, both the customer and supplier must see and

obtain benefits. The ideal partnership is one where partners complement

each other, with each one contributing from an area of strength and

receiving support in areas where they are weaker. Some of the assistances

which companies expect from their partners are:

Just in Time: Implementation of just in time system at suppliers end is one

of the most important assistance that can provide to companies. The just in

time (JIT) supply arrangements now common in the automotive industry,

where parts are delivered to the production line just as they are needed for

assemblies, is a good example where a partnership between supplier and

customer leads to significant saving. Committing to an agreed quantity of

parts on an agreed JIT schedule allows for the reduction of inventories, both

at the auto plant and at the parts manufacturer and both gain benefits


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from reduced investment in inventory. To be effective, these JIT alliances

requires a high degree of mutual trust, even to the extent of sharing

confidential company data on matters such as production plans.

A strong alliance leads to a sharing of technology and expertise, which leads

to improved products for both the supplier and, eventually the customer. An

extreme example of alliances where technological advances have changed

old patterns is illustrated by NIKE, the worlds dominant provider of athletic

shoes. This company has evolved to become world class in design of shoes

and in marketing and transfer his technology to other and now NIKE hardly

manufacturer any shoes itself. Through highly integrated alliances, NIKE

outsources all manufacturing to more specialized and expert suppliers.

Developing better communication channels.

Some of the mutual benefits which companies and their partners can enjoy

are:

increased sales through better timing due to anticipating needs based

on historic trends.

identifying needs more effectively by understanding specific customer

requirements.

cross-selling of other products by highlighting and suggesting

alternatives or enhancements.

effective targeted marketing communications aimed specifically at

customer needs.

a more personal approach and the development of new or improvedproducts and services in order to win more business in the future.

enhanced customer satisfaction and retention, ensuring that your

good reputation in the marketplace continues to grow.


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increased value from your existing customers and reduced cost

associated with supporting and servicing them, increasing your

overall efficiency and reducing total cost of sales.

Reference:

http://www.is4profit.com

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http://www.is4profit.com/http://www.is4profit.com/http://www.is4profit.com/


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Question 4

What is HOUSE OF QUALITY for Human

Resource? House of Quality consists of four

important elements, explain them in detail.

(20)


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House of Quality is a graphic tool for defining the relationship between

customer desires and the firm/product capabilities. It is a part of the Quality

Function Deployment (QFD) and it utilizes a planning matrix to relate what

the customer wants to how a firm (that produce the products) is going to

meet those wants. It looks like a House with a "correlation matrix" as its roof,

customer wants versus product features as the main part, competitor

evaluation as the porch etc. It is based on "the belief that products should be

designed to reflect customers' desires and tastes". It also is reported to

increase cross functional integration within organizations using it, especially

between marketing, engineering and manufacturing.

House of Quality model that looks specifically at the human resources

function, the cornerstones are four:

The vision and mission of senior leadership.

The organizational culture.

The culture of the country itself.

Servant leadership.

The foundation on which everything else is built is the internal customers

and clients of the unit. It is for them that the department and management

of that function exist.

The four pillars in model are:

HOUSE OF QUALITY FOR HUMAN RESOURCES
http://en.wikipedia.org/wiki/Customerhttp://en.wikipedia.org/wiki/Quality_function_deploymenthttp://en.wikipedia.org/wiki/Quality_function_deploymenthttp://en.wikipedia.org/wiki/Planninghttp://en.wikipedia.org/wiki/Matrixhttp://en.wikipedia.org/wiki/Correlation_matrixhttp://en.wikipedia.org/wiki/Marketinghttp://en.wikipedia.org/wiki/Marketinghttp://en.wikipedia.org/wiki/Correlation_matrixhttp://en.wikipedia.org/wiki/Matrixhttp://en.wikipedia.org/wiki/Planninghttp://en.wikipedia.org/wiki/Quality_function_deploymenthttp://en.wikipedia.org/wiki/Quality_function_deploymenthttp://en.wikipedia.org/wiki/Customer


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Continuous improvement

Product and process quality procedures, tools and measurement.

People development.

Speaking with facts (not opinions or political views) and measurement.

Fig: House of Quality for Human Resources

The roof forms the constraints. There are four identified, but others may

claim there are a fewer or greater number of barriers. The four constraints

are:

Strategy, both short term and long term.

CONTINUOUSIMPROVEMEN

T,

PRODUCT/PROCESSQUALITY

PEOPLE

DEVELOPMENT

FACTSAND

MEASUREMENT

Internal Stakeholders (Customers/Clients

Vision

(Mission)Org.

Culture

National

Culture

Servant

Leadership

Strategy

Rules &

Procedures

(Legal &

Political)

Systems,

Processes,

Structure

Environmental

Constraints


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Rules and procedures. Some of these are internal. Others are forced on the

organization and on human resources management by the legal and

political structure that exists at large and within the organization.

Systems, processes and structure.

Environment.

The mortar is the cement that holds the house together. It is based on:

Respect for the individual.

Ethical and moral behavior.

Respect for authority.

Now we will discuss the four pillar which are the most important in house of

quality for human resources.

1. Pillar One: Continuous ImprovementContinuous improvement is the process of making something better and

doing this over an extended period of time. It often involves

experimentation with processes, systems and structure to find the current

best method that will increase effectiveness and/or efficiency. Generally,

until the technique or replacement part is perfected, organizations prefer

to do this experimentation on a small scale.

Again the human resource department has two sets of responsibilities in

terms of activities that must be implemented before kaizen (a Japanese

word for continuous improvement) can occur. The first is to provide the

organization with the type of support needed to help in the


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implementation of any program or process. The second responsibility is

to implement such a program within its own area.

Petrick and Furr (1995) point out that there are three types of continuous

improvement processes i.e. cost reduction, best in class and breakthrough

dominance. Breakthrough dominance is also a method to outdistance

competitors. For the most part, it involves reengineering.

Cost reduction is more long term, and involves continuous and

incremental patterns. As the term states, it is aimed at greater efficiency

and lowering of costs. It tends to work well in a slow growth economy or

when a product is in the mature growth stage.

Best in class CI, on the other hand, is more short term in orientation.

Because considerable benchmarking is involved, some initial involvement

and commitment of both financial and human resources is required. This

style of CI is best suited to organizations that are on the cutting edge and

interested in fast growth.

Reengineering is not really CI because the attempt is to make quantum

leaps to outpace the competition. It usually involves a tearing down of

what exists and a complete restructuring (including downsizing and

delayering) often in very new directions. The process is seldom

incremental; instead it is revolutionary. By its very nature, a large initialinvestment is required and considerable funds are necessary to maintain

product dominance.


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2. Pillar Two: Product/Process QualityThe second pillar is process improvement. It is different from continuous

improvement. The two are closely related but our emphasis are different.

Considerable disagreement existed in the past as to whether quality

improvement was a process or a program. Diehards did not like the

thought of a program, arguing that a program had a beginning and an

ending date. Processes, however, were, at least in definition, continuous.

In the recent years, the discussions appear to have decreased and the two

words are used inter changeably. Others, to the extent possible, avoid

their use entirely. In any event, the difference is more semantic than real.

One way that HR can be at the forefront is to ensure that its own database

is current and tied to other organizational software programs and

systems. This database must be more than just an employee information

system that gives the qualifications and experience of all employees; it

must provide HR with the heart and pulse of the organization.

The HRM database includes:

Internal rules and procedures.

The process improvement cycle.

Special problems and concerns.

Job redesign and reengineering.

Recognition systems.

Zero service ineffectiveness, reducing response time, privacy protection.


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3.Pillar Three People DevelopmentThe third pillar is people development. HR has a special responsibility to

the rest of the organization to ensure that the right types of people areavailable at the right time, in the right place, in the right quantity. This

also applies to quality management, in that employees have to be selected

and trained. For a successful QM program, employees need to understand

what the organization expects and what it will offer in exchange for

services, loyalty and commitment (psychological contract), and that a

change in their attitude may be required. They must also be able to solveproblem and work in teams. These last two activities require interaction

skills.

Psychological Contract: An employees work life starts with a

psychological contract. When a new employee is hired, that individual

has certain perceptions of what she will do for the company and what the

company will do for her. Part of that expectation will be career

progression and possible career paths. At the same time, the company or

organization has expectations of what it will do for employees in general,

and the new person in particular. It also knows how it plans to reward

the employees, what benefits and pre-requisites of office it plans or

giving. If the two psychological perceptions are in alignment, all is well

and good.

Change of Attitude: Effective QM usually requires a flat organization.

Flat organizations require different attitudes and ways of looking at

relationships. Employees must be willing to be their own bosses and

inspectors. This means that they have to be prepared to accept


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responsibility for ensuring that work is done in accordance with quality

expectations.

Problem Solving Skills: HR has a responsibility to ensure that all

employees receive the training that they need to perform to the

expectations of the organizations. Trainings that should be offered to

employees, from a problem solving point of view, includes the following:

The new quality understanding- conformance to requirements,

prevention, zero defects and conformance to customer

expectations.

Collecting data

Charts and graphs histograms, scatter diagrams.

Cause and effect and process diagrams.

Check sheets

Pareto diagrams

Control charts

Sampling, sampling inspection and control

Manufacturing vs service requirements

Quality in profit vs non-profit organizations

Measuring performance.

Employee involvement and team building: A crucial role of HRM is

the selection and training of people for employee involvement and for

teams. The first thing that must be understood is that a group of people

who are working together are not a team; nor all members of that groupinvolved. Considerable preparation must occur before a group begins to

function as a team and before there is a true employee involvement.

Team leaders and facilitators also need development. Additionally if


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teams are to function properly, senior and middle management must be

trained in their new roles.

4.Pillar Four: Facts and MeasurementsThe fourth pillar involves gathering data so that discussion and analysis

can begin with what exists (the reality). We look at speaking with facts

and measurement.

Speaking with Facts: Speaking with facts means that required

resources and methods are available to determine what is actually

true within an organization. The process used to collect or obtain thefacts is as important as the data itself. A variety of tools, techniques

and instruments are used to obtain factual data. Every attempt is

made to eliminate barriers to fact finding in an accurate and honest

manner.

Measurement: Measurement is an important part in speaking with

facts. It ensure that everyone understands the situation that is being

discussed in the same way. It also invites questioning of those facts.

What does measurement means? It is the establishment and use of

performance indicators that evaluate what has been done through the

use of some type of assessment instruments. Measurements include

internal performance assessments and external stakeholder related

evaluations.

References:

Total Quality Management AIOU

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Question 5A recent research over a question that

whether or not Voice of Customer is killingoff innovation because paying such close

attention to the VOC prevents the company

from being more creative. Do you think that

VOC is really killing off innovation?

(20)


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Because QFD concentrates on customer expectations and needs, a

considerable amount of efforts is put into research to determine customer

expectations. This process increases the initial planning stage of the project

definition phase in the development cycle. But the result is a total reduction

of the overall cycle time in bringing to the market a product that satisfies the

customer.

The driving force behind QFD is that the customer dictates the attributes of

a product. Customer satisfaction like quality is defined as meeting or

exceeding customer expectations. Words used by the customer to describe

their expectations are often referred to as the Voice of the Customer.

Sources for determining customer expectations are focus groups, surveys,

complaints, consultants, standards and federal regulations. Frequently,

customer expectations are vague and general in nature. It is the job of the

QFD team to analyze these customer expectations into more specific

customer requirements. Customer requirements must be taken literally and

not incorrectly translated into what organization officials desire.

Is VOC Killing Innovation?

This is the much debated topic that whether voice of the customer is killing

innovation or not. Different peoples have different thoughts but most of the

experts have consensus on that VOC is the driver of innovation not the

killer. Below are the some opinions from experts:

VOICE OF THE CUSTOMER


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No way, VOC must help you to understand the needs of your customers,

you are not going to invent a need for your customer only because you are

to creative. Once you have understood what you customer requires, you use

your innovation process to find the more creative solution that satisfy your

customer in the best way. What it is possible is that your customer had not

identified some need, and then you could have a restricted answer, but

inclusive in this case, you have to be very creative to understand what your

customer have not identified.

VOC never substitutes Creativity and Innovation, Instead, Creativity

and Innovation are used to give answers to VOC.

VOC does not kill innovation but it helps in bringing about clear focus in

your directing your resources. First of all why organizations of any kind

exist? It is only to meet the aspirations and requirements of their Customers

and hence VOC is the logical means for staying on course.

Six Sigma process ensures that we meet our customer needs profitably

and VOC is the best way of understanding what the customers want. Being

innovative is good, but if the customer is not ready to pay for it, it doesnt

mean anything for a business. Innovation may delight the customer but only

when his most essential needs are met and a good VOC process ensures that

we do the right things.

VOC is for capturing the requirements of a product which the customer

thinks as the minimum wants. This will help u in streamlining your

thoughts to think in that direction and will not kill your creativity. You can

be innovative in the following ways after capturing the VOC,

1. Innovative ways of achieving the specified wants of the customer

compared to the existing products in the market.


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2. Innovative extra features in the product which the customer didn't even

dream of, apart from all the features the customer needs, to bring out

a product that can create waves in the market (customer WOW) and be a

'Game Changer' for the company's business.

To achieve the above said things you need lots of research and 'out of the

box' thinking. So I can assure you that by doing VOC you can be more

innovative and your product will be more successful in the market as you

will get a direction to think, a direction in which you need to be innovative.

I think we need to make a distinction between innovation and invention.

VOC is a very important input for working on innovations as this helps inaligning the resources in the right direction.

Inventions like the walkman could depend on the perceived needs which

may not be stated explicitly by customers as they are not yet aware that

such a thing would be possible.

VOC is the driver of innovation, not the killer. Any confusion is over the

meaning of VOC. Unfortunately, a conventional view of VOC is finding outwhat the potential customer wants. That doesn't work because, as you say,

that limits the supplier to the customer's level of creativity. Savvy

implementation of DFSS defines VOC as identifying and understanding

customer needs. The solution to those needs is the seller's responsibility.

The most creative solution wins the business - so innovation remains the

basis of competitive advantage.

Conclusion:

VOC enables the producer to prioritize the customer's needs, and to cope

with tradeoffs in existing products and services. That neither encourages nor


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discourages innovation in and of itself. That simply configures existing

offerings to maximize the benefit.

If that is as far as you go with VOC, then there is no opportunity forinnovation.

However, the best VOC efforts consider features in context with what

OUTCOMES the customers ultimately want. Couple that with the right

creativity tools and you have an environment ripe for high-power

innovation.

Once again, it all boils down to how VOC is managed, rather than the

technicalities or the methods.

Reference:

http://www.isixsigma.com

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semester iii assgn i total quality management

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