TOTAL QUALITY MANAGEMENT UNIT-2

UNIT - 2

Leadership: Definition, characteristics of quality leaders, leadership concept,

Characteristics of effective people, ethics, the Deming philosophy, role of TQM
leaders, implementation, core values, concepts and framework, strategic planning
communication, decision making,- 06 Hours
QUESTIONS
1. What are the characteristics of quality leaders?[July 2011-10M]/
2. Explain the quality statements. ?[July 2011-10M]
3. Define three quality statements of an organizations [Jan 2011 -6M]
4. Explain briefly the concepts of quality costs. [Jan 2011 -7M]
5. Define strategic planning. Explain briefly the seven steps towards strategic planning. .
[Jan 2011 -7M]
6. Explain the characteristics of quality leaders.[JAN 2010 -6
7. What is strategic planning? Enumerate the steps to strategic planning
[Jan 2010 -6M]
8. Explain briefly quality costs and economics of quality costs.-Jan 2010-8 Marks.
9. Define leadership. Explain the characteristics of quality leaders.
[June 2010-10 Marks]
10. Mention and explain quality statements. [June 2010-10Marks]
11. Explain the 7 habits of highly effective people. [8 Marks]
12. Define ethics. Explain the root causes of unethical behavior. [8 Marks]
13. Explain 14 points of Demings philosophy. [10 Marks]
14. Explain the role of TQM leaders in implementing TQM.

PREPARED BY DR.SHANTHAKUMAR G C, PROF & HEAD, DEPARTMENT OF

MECHANICAL ENGINEERING, TJIT, BANGALORE-83, AUGUST-2013

TOTAL QUALITY MANAGEMENT UNIT-2

Definition of leaders:

According to James Macgregor Burns, a leader is one who instills purposes, not one
who controls by brute force.
A leader strengthens and inspires the followers to accomplish shared goals
Leader shapes the organizations values, protects the organizations values and
exemplifies the organization's values.
Ultimately Burns says, Leaders and followers raise one another to higher levels of
motivation and morality leadership becomes moral in that it raises the human
conduct and ethical aspiration of both the leader and the led, and thus has a
transforming effect on both.
Leadership is we, not me; mission, not my show; vision, not division; and
community, not domicile.

Definition of leader by N R Narayanmurthy, Chief Mentor, Infosys

A great leader is one who is not only good in creating vision, creating the big
picture, but also ensuring that he goes in to the nitty-gritty, into the details of
making sure that his vision is actually translated into reality through excellence of
execution. In other words, great leaders have great vision, great imagination, great
ideas but they also implement these ideas through hard work, commitment and
flawless execution. In doing so they motivate thousands of people

CHARACTERTISTICS OF QUALITY LEADERS:

1.

They give priority attention to external & internal customers and their needs.
Leaders place themselves in the customers shoes and service their needs from that
perspective. They continually evaluate the customers changing requirements.

2. They empower, rather than control, subordinates. Leaders have trust and confidence in
the performance of their subordinates. They should provide resources, training, and work
environment to help subordinates do their jobs. However, the decision to accept
responsibility lies with the individual
3. They emphasize improvement rather than maintenance. Leaders use the Phrase If it is
not perfect, improve it rather than if it isn't broke, dont fix it.There is always room for
improvement, even if the improvement is small. Major breakthrough sometimes happen,
but its the little ones that keep the continuous process improvement on a positive track.
4. They emphasize prevention. An ounce of prevention is worth a pound of cure is
certainly true. It is also true that perfection can be enemy of creativity. We cant always
wait until we have created the perfect process or product .There must be a balance
between preventing problems and developing better, but not perfect, processes.
PREPARED BY DR.SHANTHAKUMAR G C, PROF & HEAD, DEPARTMENT OF
MECHANICAL ENGINEERING, TJIT, BANGALORE-83, AUGUST-2013

TOTAL QUALITY MANAGEMENT UNIT-2

5.

They encourage collaboration rather than competition. When functional areas,

departments, or work groups are in competition, they may find subtle ways of working
against each other or withholding information. instead, there must be collaboration
among and within units.

6. They train and coach, rather than direct and supervise. Leaders know that the
development of the human resource is a necessity. As coaches, they help their
subordinates learn to do a better job.
7. They learn from problems. When problem exists, it is treated as an opportunity rather
than something to be minimized or covered up. What cause it? And How can we
prevent it in the future? are the questions quality leaders ask.
8. They continually try to improve communications. Leaders continually disseminate
information about the TQM effort. They make it evident that TQM is not just a slogan.
Communication is two way- ideas will be generated by people when leaders encourage
them and act upon them. For example, on the ve Desert Storm, General Colin Powell
solicited enlisted men and women for advice on winning the war. Communication is the
glue that holds a TQM organization together.
9. Leaders continually demonstrate their commitment to quality. Leaders walk their talk
their actions rather their words, communicate their level of commitment. They let the
quality statements for their decision- making guide
10. Leaders choose suppliers on the basis of quality, not price. Suppliers are encouraged to
participate on project teams and become involved. Leaders know that quality begins with
quality materials and the true measure is life cycle cost.
11. They establish organizational systems to support the quality effort. At the senior
management level a quality council is provided, and the first- line supervisor level, work
groups and project teams are organized to improve the process.
12.

Leaders encourage and recognize team effort. They encourage, provide, and reward
individuals and teams. Leaders know that people like to know that their contributions are
appreciated and important. This action is one of the leaders most powerful tools.
Characteristics needed by quality leaders

Vision
Passion(Enthusiasm)-he projects, what inspires others

The leaders love what he does and loves doing it.

Integrity-Self knowledge, candour, maturity

PREPARED BY DR.SHANTHAKUMAR G C, PROF & HEAD, DEPARTMENT OF
MECHANICAL ENGINEERING, TJIT, BANGALORE-83, AUGUST-2013

TOTAL QUALITY MANAGEMENT UNIT-2

Curiosity, wants to learn as much as he can
During, the leader takes risks
Generosity
Communicating and Delegating

Leadership concepts.
In order to become successful, leadership requires an intuitive understanding of human
nature-the basic needs, wants, and abilities of people. To be effective, a leader
understands that:
1. People, paradoxically, need security and independence at the same time.
2. People are sensitive to external rewards and punishments and yet are also strongly
self-motivated.
3. People like to hear a kind word of praise. Catch people doing something right, so
you can pat them on the back.
4. People can process only a few facts at a time; thus a leader needs to keep things
simple.
5. People trust their gut reaction more than statistical data
6. People distrust a leaders rhetoric if the words are inconsistent with the leaders
action
Leader needs to give their employees independence and yet provide a
secure working environment-one that encourages and rewards success. A
working environment must be provided that fosters employee creativity
and risk-taking by not penalizing mistakes
THE SEVEN .HABITS OF HIGHLY EFFECTIVE PEOPLE
[Stephen R Covey]
Be pro-active
Begin with the end in mind
Put first things first (ref.Coveys Time management matrix pg.35)
Think win-win
Seek first to understand, then to be understood
Synergy
PREPARED BY DR.SHANTHAKUMAR G C, PROF & HEAD, DEPARTMENT OF
MECHANICAL ENGINEERING, TJIT, BANGALORE-83, AUGUST-2013

TOTAL QUALITY MANAGEMENT UNIT-2

Sharpen the saw
ETHICS:
Ethics is a body of principles or standards of human conduct that govern the behavior of
individuals and organizations.
The Root Causes of Unethical behavior
Much of the unethical behavior in organizations occurs when
1. Organizations favor their own interests above the well being of their customers,
employees or the public
2. Organizations reward behavior that violates ethical standards, such as increasing
Sales through false advertising
3. Organizations encourage separate standards of behavior at work than at home,
such as secrecy and deceit versus honesty
4. Individuals are willing to abuse their position and power to enhance their
interests, such as taking excessive compensation for themselves off the top before
other stakeholders receive their fair share,
5. Managerial values exist that undermine integrity, such as the pressure managers
exert on employees to cover up mistakes or to do whatever it takes to get the job
done, including cutting corners
6. Organizations and individuals overemphasize the short-term results at the expense
of themselves and others in the long run; for example behavior is good based on
the degree of utility, pleasure, or good received. Regardless of effect on other
7. Organizations and managers believe their knowledge is infallible and miscalculate
the true risks, such as when financial managers invest organizational funds in
high-risk options trading.
ETHICS MANAGEMENT PROGRAM
Ethics management program needs to address pressure, opportunity and attitude.
Managing ethical behavior requires commitment, new policies and procedures,
continuous improvement and investments in appraisal, prevention and promotion.
There are three steps in an ethical management system
1. Appraisal-Analysis of the costs associated with unethical behavior.
2. Prevention-Development of system that will minimize costs
3. Promotion- which is the continuous advertising of ethical behavior in
order to develop an ethical organizational culture that is clear,positive and
effective

PREPARED BY DR.SHANTHAKUMAR G C, PROF & HEAD, DEPARTMENT OF

MECHANICAL ENGINEERING, TJIT, BANGALORE-83, AUGUST-2013

TOTAL QUALITY MANAGEMENT UNIT-2

1. Appraisal: It is the Analysis of the costs associated with unethical behavior. These

costs can be divided into the three root causes of pressure, opportunity and attitude.
Costs from pressure are those costs from well intended but unethical decisions made
under pressure. They include but are not limited to errors, waste, rework, lost customer
and warranties.
Costs from opportunity are those costs from intentional wrong doing. They include but
are not limited to theft, overstated expenses, excessive compensation and nepotism.
Costs from attitudes are those costs from mistaken beliefs in unethical forms of behavior.
They include but are not limited to errors, waste, rework, lost customer and healthcare.
2. PEVENTION: It is the development of a system that will minimize costs.
Pressure can be addressed by being involved in the development of goals and
values and developing policies that allow for individual diversity, dissent and
decision making input.
Opportunity can be addressed by developing policies that encourage and protect
whistleblowers and require the existence of ombudsmen who can work
confidentially with people to solve ethical problems internally
Attitude can be addressed by requiring ethics training for all personnel,
recognizing ethical conduct in the workplace, requiring performance appraisals to
include ethics, and encouraging open discussions concerning ethical behavior
issues.
3. PROMOTION: This is the continuous advertising of ethical behavior in order to
develop an ethical organizational culture that is clear, positive and effective.

To be clear the philosophy need to be written, with input from all personnel,
and posted. Standardised ethics training should be given everyone to 1) teach
them how to clarify ethical issues 2)encourage them to get the facts before
acting 3) encourage them to consider all the consequences before acting
4)show them how to test their actions in advance.
To be positive, the culture should be about doing what is right, encouraging
principled organizational dissent and rewarding ethical behavior.
To be effective, the philosophy must be set and adopted by senior
management, with input from all personnel. Senior management should act as
they would want others to act and make no exceptions.

The Deming Philosophy

PREPARED BY DR.SHANTHAKUMAR G C, PROF & HEAD, DEPARTMENT OF
MECHANICAL ENGINEERING, TJIT, BANGALORE-83, AUGUST-2013

TOTAL QUALITY MANAGEMENT UNIT-2

Create and publish the aims and purposes of the organization

Learn the new philosophy

Understand the purpose of inspection

Stop awarding business based on price alone.

Improve constantly and forever the System

Institute training

Teach and institute leadership

Drive out fear, create trust, and create a climate for innovation

Optimize the efforts of teams, groups, and staff areas

Eliminate exhortations for the work force

Eliminate numerical quotas for the work force

Eliminate management by objectives

Remove barriers to pride of workmanship

Encourage education and self-improvement for all

Take action to accomplish the transformation

Role of TQM leaders

All are responsible for quality improvement especially the senior management & CEOs
Senior management must practice MBWA[Management by Wandering Around]
Ensure that the teams decision is in harmony with the quality statements of the
organization
Senior TQM leaders must read TQM literature and attend conferences to be aware of
TQM tools and methods
Senior managers must take part in award and recognition ceremonies for celebrating the
quality successes of the organization
Coaching others and teaching in TQM seminars
PREPARED BY DR.SHANTHAKUMAR G C, PROF & HEAD, DEPARTMENT OF
MECHANICAL ENGINEERING, TJIT, BANGALORE-83, AUGUST-2013

TOTAL QUALITY MANAGEMENT UNIT-2

Senior managers must liaise with internal ,external and suppliers through visits,focus
groups, surveys
They must live and communicate TQM.

TQM implementation:

Begins with Sr. Managers and CEOs

Timing of the implementation process
Formation of Quality council
Union leaders must be involved with TQM plans implementation
Everyone in the organization needs to be trained in quality awareness and problem
solving
Quality council decides QIP projects.

Quality Council:
The quality council includes CEO and senior managers of the functional areas -research,
manufacturing, finance, sales, marketing etc. and one co-ordinator and a union
representative.
Duties- of quality council are
To develop the Quality statements eg. Vision, Mission, Quality policy statements, Core
values etc.
To develop strategic long-term plans and annual quality improvement programme.
Make a quality training programme
Monitor the costs of poor quality.
Determine the performance measures for the organization
Always find projects that improve the processes and produce customer satisfaction.
Establish work-group teams and measure their progress.
Establish and review the recognition and reward system for the TQM system

Core values, concepts and framework

PREPARED BY DR.SHANTHAKUMAR G C, PROF & HEAD, DEPARTMENT OF
MECHANICAL ENGINEERING, TJIT, BANGALORE-83, AUGUST-2013

TOTAL QUALITY MANAGEMENT UNIT-2

What do you understand by the term quality statements? Elaborate them with
examples.
Quality statements are part of strategic planning process and once developed, are
occasionally reviewed and updated.
There are three types of quality statements:
1. Visionstatement
2. Missionstatement
3. Quality policy statement
The utilization of these statements varies from organization to organization. Small
organization may use only the quality policy statement
Vision Statement
The vision statement is a short declaration what an organization aspires to be tomorrow.
A vision statement, on the other hand, describes how the future will look if the
organization achieves its mission.
Successful visions are timeless, inspirational, and become deeply shared within the
organization, such as:
IBMs Service
Apples Computing for the masses
Disney theme parks the happiest place on the earth, and
Polaroids instant photography
An example of vision statement
To be world- class enterprise in professional electronics BEL
L&T shall be professionally managed Indian multinational, committed to total customer
satisfaction and enhancing shareholders value.
L&T is innovative, entrepreneurial and empowered team constantly creating value and
attaining global benchmarks.
L&T shall foster culture of caring, trust and continuous learning while meeting
expectations of employees, stakeholders and society.---------------------------LARSEN &
TOUBRO
PREPARED BY DR.SHANTHAKUMAR G C, PROF & HEAD, DEPARTMENT OF
MECHANICAL ENGINEERING, TJIT, BANGALORE-83, AUGUST-2013

TOTAL QUALITY MANAGEMENT UNIT-2

Mission Statement:

A mission statement concerns what an organization is all about. The statement

answers the questions such as: who we are, who are our customers, what do we do and
how do we do it. This statement is usually one paragraph or less in length, easy to
understand, and describes the function of the organization. It provides clear statement of
purpose for employees, customers, and suppliers.
An example of mission statement is:

Ford Motor Company is a worldwide leader in automatic and automotive related products
and services as well as the newer industries such as aerospace, communications, and
financial services. Our mission is to improve continually our products and services to
meet our customers needs, allowing us to prosper as a business and to provide a
reasonable return on to our shareholders, the owners of our business.
An example of simpler mission statement
Our mission is to help our customers achieve their business goals through excellence in
global product realisation. We will enable this through solutions based on innovative
technologies, efficient processes and world class competencies in our people---Geometric software
Quality Policy Statement
The quality policy is a guide for everyone in the organization as to how they should
provide products and services to the customers. It should be written by the CEO with
feedback from the workforce and be approved by the quality council. A quality policy is a
requirement of ISO 9000.
A simple quality policy is:
Xerox is a quality company. Quality is the basic business principle for Xerox. Quality
means providing our external and internal customers with innovative products and
services that fully satisfy their requirements. Quality is the job of every employee.
Quality Policy Statement of Tata Motors
Tata Motors is committed to maximizing customer satisfaction and strives to achieve the
goal of excellence, by continual improvement, through ongoing design and development,
manufacture and sale of reliable,safe,cost- effective, quality products and services of
international standards, using environmentally sustainable technologies, for improving
levels of efficiency productivity within its plants and ancillaries.

PREPARED BY DR.SHANTHAKUMAR G C, PROF & HEAD, DEPARTMENT OF

MECHANICAL ENGINEERING, TJIT, BANGALORE-83, AUGUST-2013

TOTAL QUALITY MANAGEMENT UNIT-2

Tata Motors also has commitment towards improving the quality-----RATAN N
TATA,CHAIRAMAN
In summary, the quality statements consist of the core values and concepts, the vision
statement, the mission statement, and the quality policy statement. The core values and
concepts should be condensed considerably for simplicity and publication

An example of a statement that includes vision, mission, quality policy,

and core value is
Geon has a clear corporate vision..To be the benchmark company in the
polymer industry through superior performance, demonstrated by:
Living up to its established principles of excellence in environmental
protection, health and safety
Fully satisfying the expectations of its customers
Developing and commercializing innovative polymers technology
Utilizing all resources productively
Continually improving processes and products
Generating sustained value for customers,employees,suppliers and investors
Creating an environment of Trust ,Respect, Openness and Integrity
------------------------------------------------------THE GEON COMPANY
STRATEGIC PLANNING
What is Strategic Planning?

Process to establish priorities on what you will accomplish in the future Forces you
to make choices on what you will do and what you will not do

Pulls the entire organization together around a single game plan for execution

Broad outline on where resources will get allocated

A process that charts out an institutions broad direction forward.

PREPARED BY DR.SHANTHAKUMAR G C, PROF & HEAD, DEPARTMENT OF

MECHANICAL ENGINEERING, TJIT, BANGALORE-83, AUGUST-2013

TOTAL QUALITY MANAGEMENT UNIT-2

It helps an institution to decide what to achieve and actions to be undertaken in the

future.
A collective and participatory process, involving senior management, employees, and
other stakeholders.
It looks at the big picture from a longer-term perspective.
It clarifies Institutional priorities.
It provides an opportunity to address fundamental questions, to focus away from day to
day operations, and take initiatives to improve performance.
Definition of Strategy/Strategic

A careful plan or method

The art of devising or employing plans or stratagems toward a goal
Of great importance within an integrated whole or to a planned effect
Necessary to or important in the initiation, conduct, or completion of a strategic plan
What Strategic Planning is Not
Strategic planning is not forecasting
Strategic planning is not the simple application of quantitative techniques to business
planning.
Strategic planning is concerned with making decisions today that will affect the
organization (product line) and its future.
Strategic planning does not eliminate risk, it helps managers access the risks they must
take by gaining a better understanding of the parameters involved in their decisions.
Benefits of Strategic Planning
Defines mission, vision & values
Establishes realistic goals, objectives & strategies
Ensures effective use of resources
Provides base to measure progress
Develops consensus on future direction
Builds strong teams
PREPARED BY DR.SHANTHAKUMAR G C, PROF & HEAD, DEPARTMENT OF
MECHANICAL ENGINEERING, TJIT, BANGALORE-83, AUGUST-2013

TOTAL QUALITY MANAGEMENT UNIT-2

Solves major problems
Why do Strategic Planning?

If you fail to plan, then you plan to fail be proactive about the future

Strategic planning improves performance

Counter excessive inward and short-term thinking

Solve major issues at a macro level

Communicate to everyone what is most important

Reasons for Strategic Planning
Change, Renewal, Funding requirement, Financial forecasting, Mandate , Build
consensus, Improve staff and board relations, Develop ownership, Build community
support, Other (discussion)

SEVEN STEPS TO STRATEGIC PLANNING

There are seven basic steps to strategic planning. The process starts with the principle that
quality and customer satisfaction are the center of an organizations future. It brings
together all the key stake holders.
1. CUSTOMER NEEDS: The first step to discover the future customers. Who will they be?
Will your customer base change? What will they want? How will the organization meet
and exceed expectations?
2. CUSTOMER POSITIONING: Next the planners determine where the organization wants
to be in relation to the customers. Do they want to retain, reduce, or expand the customer
base? Products or services with poor quality performances should be targeted for
breakthrough or eliminated. The organization needs to concentrate its efforts on areas of
excellence.
3.

PREDICT THE FUTURE: Next the planners must look into their crystal balls to predict
future conditions that will affect their product or service.Demographics,economic
forecasts, and technical assessments or projections are tools that help predict the future.
More than one organizations product or service has become obsolete because it failed to
foresee the changing technology. Not e that the rate of change is continually increasing.

4.

GAP ANALYSIS: This step requires the planners to identify the gaps between the
current state and the future state of the organization. An analysis of the core values and
concepts, is an excellent technique for pinpointing the gaps

PREPARED BY DR.SHANTHAKUMAR G C, PROF & HEAD, DEPARTMENT OF

MECHANICAL ENGINEERING, TJIT, BANGALORE-83, AUGUST-2013

TOTAL QUALITY MANAGEMENT UNIT-2

5. CLOSING THE GAP: The plan can now be developed to close the gaps between the
current state and the future state of the organizational stakeholders should be included in
the developmental plan.
6. ALLIGNMENT: As the plan is developed, it must be aligned with the mission, vision
and core values and concepts of the organization. without this alignment, the plan will
have little chance of success.
7. IMPLIMENTATION: This last step is frequently the most difficult. Resources must be
allocated to collecting data, designing changes and over coming resistance to change.
Also part of this step is the monitoring activity to ensure that progress is being made. The
planning group should meet at least once a year to assess the progress and take any
corrective action.
Strategic planning can be performed by any organization. It can be highly effective,
allowing organizations to do the right thing at the right time, every time.

Communication
All

PREPARED BY DR.SHANTHAKUMAR G C, PROF & HEAD, DEPARTMENT OF

MECHANICAL ENGINEERING, TJIT, BANGALORE-83, AUGUST-2013