Total Quality Management

1.0 Introduction

Total Quality management is defined as a continuous effort by the management as well as

employees of a particular organization to ensure long term customer loyalty and customer
satisfaction. Remember, one happy and satisfied customer brings ten new customers along with
him whereas one disappointed individual will spread bad word of mouth and spoil several of
your existing as well as potential customers.

You need to give something extra to your customers to expect loyalty in return. Quality can be
measured in terms of durability, reliability, usage and so on. Total quality management is a
structured effort by employees to continuously improve the quality of their products and services
through proper feedbacks and research. Ensuring superior quality of a product or service is not
the responsibility of a single member.

Every individual who receives his/her paycheck from the organization has to contribute equally
to design foolproof processes and systems which would eventually ensure superior quality of
products and services. Total Quality management is indeed a joint effort of management, staff
members, workforce, suppliers in order to meet and exceed customer satisfaction level. You
can’t just blame one person for not adhering to quality measures. The responsibility lies on the
shoulder of everyone who is even remotely associated with the organization.

W. Edwards Deming, Joseph M. Juran, and Armand V. Feigenbaum jointly developed the
concept of total quality management. Total Quality management originated in the manufacturing
sector, but can be applied to almost all organizations.

Total quality management ensures that every single employee is working towards the
improvement of work culture, processes, services, systems and so on to ensure long term
success.

Total Quality management can be divided into four categories:

 Plan
 Do
 Check
 Act

Also referred to as PDCA cycle.

1.1 Planning Phase

Planning is the most crucial phase of total quality management. In this phase employees have to
come up with their problems and queries which need to be addressed. They need to come up with
the various challenges they face in their day to day operations and also analyze the problem’s

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root cause. Employees are required to do necessary research and collect relevant data which
would help them find solutions to all the problems.

1.2 Doing Phase

In the doing phase, employees develop a solution for the problems defined in planning phase.
Strategies are devised and implemented to overcome the challenges faced by employees. The
effectiveness of solutions and strategies is also measured in this stage.

1.3 Checking Phase

Checking phase is the stage where people actually do a comparison analysis of before and after
data to confirm the effectiveness of the processes and measure the results.

1.4 Acting Phase

In this phase employees document their results and prepare themselves to address other
problems.

1.5 Importance of Quality Management

Quality management ensures superior quality products and services

Quality of a product can be measured in terms of performance, reliability and durability. Quality
is a crucial parameter which differentiates an organization from its competitors. Quality
management tools ensure changes in the systems and processes which eventually result in
superior quality products and services. Quality management methods such as Total Quality
management or Six Sigma have a common goal - to deliver a high quality product. Quality
management is essential to create superior quality products which not only meet but also exceed
customer satisfaction. Customers need to be satisfied with your brand. Business marketers are
successful only when they emphasize on quality rather than quantity. Quality products ensure
that you survive the cut throat competition with a smile.

Quality management is essential for customer satisfaction which eventually leads to

customer loyalty

How do you think businesses run? Do businesses thrive only on new customers? It is important
for every business to have some loyal customers. You need to have some customers who would
come back to your organization no matter what.

Would you buy a Nokia mobile again if the previous handset was defective? The answer is NO.

Customers would return to your organization only if they are satisfied with your products and
services. Make sure the end-user is happy with your product. Remember, a customer would be
happy and satisfied only when your product meets his expectations and fulfills his needs.
Understand what the customer expects from you? Find out what actually his need is? Collect
relevant data which would give you more insight into customer’s needs and demands. Customer
feedbacks should be collected on a regular basis and carefully monitored. Quality management
ensures high quality products and services by eliminating defects and incorporating continuous

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changes and improvements in the system. High quality products in turn lead to loyal and satisfied
customers who bring ten new customers along with them. Do not forget that you might save
some money by ignoring quality management processes but ultimately lose out on your major
customers, thus incurring huge losses. Quality management ensures that you deliver products as
per promises made to the customers through various modes of promotions. Quality management
tools help an organization to design and create a product which the customer actually wants and
desires.

Quality Management ensures increased revenues and higher productivity for the
organization

Remember, if an organization is earning, employees are also earning. Employees are frustrated
only when their salaries or other payments are not released on time. Yes, money is a strong
motivating factor. Would you feel like working if your organization does not give you salary on
time? Ask yourself. Salaries are released on time only when there is free cash flow.
Implementing Quality management tools ensure high customer loyalty, thus better business,
increased cash flow, satisfied employees, healthy workplace and so on. Quality management
processes make the organization a better place to work.

Remove unnecessary processes which merely waste employee’s time and do not contribute much
to the organization’s productivity. Quality management enables employees to deliver more work
in less time.

Quality management helps organizations to reduce waste and inventory

It enables employees to work closely with suppliers and incorporate “Just in Time” Philosophy.

Quality management ensures close coordination between employees of an organization. It

inculcates a strong feeling of team work in the employees.

2.0 Elements of Total Quality Management

Quality is an essential parameter which helps organizations outshine their competitors and
survive the fierce competition.

The success of total quality management depends on following eight elements which are further
classified into following four groups.

 Foundation
 Building Bricks
 Binding Mortar
 Roof

2.1 Foundation

Foundation further includes Ethics, Integrity and Trust. The entire process of Total Quality
Management is built on a strong foundation of Ethics, Integrity and Trust. Total Quality

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Management involves every single employee irrespective of his designation and level in the
hierarchy.

2.2 Ethics: Ethics is an individual’s understanding of what is good and bad at the workplace. A
thin line of difference does exist between good and bad, which is for you to decide. Ethics teach
an individual to follow code of conduct of organization and adhere to rules and regulations.

2.3 Integrity: Integrity refers to honesty, values and an individual’s sincerity at workplace. You
need to respect your organization’s policies. Avoid spreading unnecessary rumours about your
fellow workers. Total Quality Management does not work in an environment where employees
criticize and backstab each other.

2.4 Trust: Trust is one of the most important factors necessary for implementation of total
quality management. Employees need to trust each other to ensure participation of each and
every individual. Trust improves relationship among employees and eventually helps in better
decision making which further helps in implementing total quality management successfully.

2.5 Bricks

Bricks are placed on a strong foundation to reach the roof of recognition. The foundation needs
to be strong enough to hold the bricks and support the roof.

2.6 Training: Employees need to be trained on Total Quality Management. Managers need to
make their fellow workers aware of the benefits of total quality management and how would it
make a difference in their product quality and eventually yield profits for their organization.
Employees need to be trained on interpersonal skills, the ability to work as a team member,
technical know-how, decision making skills, problem solving skills and so on. Training enables
employees to implement TQM effectively within their departments and also make them
indispensable resources.

2.7 Teamwork: Team work is a crucial element of total quality management. Rather than
working individually, employees need to work in teams. When individuals work in unison, they
are in a position to brainstorm ideas and come up with various solutions which would improve
existing processes and systems. Team members ought to help each other to find a solution and
put into place.

2.8 Leadership: Leadership provides a direction to the entire process of Total Quality
Management. Total Quality Management needs to have a supervisor who acts as a strong source
of inspiration for other members and can assist them in decision making. A leader himself needs
to believe in the entire process of TQM for others to believe in the same. Proper downloads,
briefs about TQM must be given from to time to employees to help them in its successful
implementation.

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2.9 Binding Mortar

Binding Mortar binds all the elements together.

2.10 Communication - Communication binds employees and extracts the best out of them.
Information needs to be passed on from the sender to the recipient in its desired form. Small
misunderstandings in the beginning lead to major problems later on. Employees need to interact
with each other to come up with problems existing in the system and find their solutions as well.

Three types of Communication takes place between employees:

Downward Communication: Flow of information takes place from the management to the
employees

Upward Communication: Flow of information takes place from the employees to the top level
management

Sideways Communication: Communication also takes place between various departments.

2.11 Roof

2.12 Recognition: Recognition is the final element of Total Quality Management. Recognition is
the most important factor which acts as a catalyst and drives employees to work hard as a team
and deliver their lever best. Every individual is hungry for appreciation and recognition.
Employees who come up with improvement ideas and perform exceptionally well must be
appreciated in front of all. They should be suitably rewarded to expect a brilliant performance
from them even the next time.

3.0 Total Quality Management Models

Total Quality Management is a combined effort of both top level management as well as
employees of an organization to formulate effective strategies and policies to deliver high quality
products which not only meet but also exceed customer satisfaction.

Total Quality management enables employees to focus on quality than quantity and strive hard to
excel in whatever they do. According to total quality management, customer feedbacks and
expectations are most essential when it comes to formulating and implementing new strategies to
deliver superior products than competitors and eventually yield higher revenues and profits for
the organization.

Credits for the process of total quality management go to many philosophers and their teachings.
Drucker, Juran, Deming, Ishikawa, Crosby, Feigenbaum and many other individuals who have in
due course of time studied organizational management have contributed effectively to the
process of total quality management.

There are many models of total quality management and it is really not necessary that every
organization should select and implement the same model.

Following are the various models of total quality management:

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  Deming Application Prize
 Malcolm Baldrige Criteria for Performance Excellence
 European Foundation for Quality Management, and
 ISO quality management standards

Customers and their feedbacks are the foundation of every Total Quality Management model. In
simpler words, Total Quality Management begins with understanding customers, their needs and
what they expect from the organization. Design foolproof processes and systems to collect
customer data, information to further study, analyze and act accordingly. Such activities not only
help you understand your target customers but also predict customer behaviour.

As a business marketer, you need to know the age group of your target customers, their
preferences and needs. Employees need to know how their products or services can fulfil
customer needs and demands.

Total Quality Management model requires meticulous planning and research. Every total quality
management model integrates customer feedbacks with relevant information and plans
accordingly to design effective strategies to achieve high quality products.

Strategies formulated to yield better quality products need to be evaluated and reviewed from
time to time. Remember, customers are satisfied only when products meet their expectations,
fulfil their needs and are value for money. Their overall experience with the organization needs
to be pleasant for them to be happy and return to the organization even the next time.

Continuous improvements, changes and modifications in the existing processes according to

customer expectations are necessary to yield higher profits. Processes can’t be same always. If a
customer complaints about a particular product of yours, find out the root cause of problem.
Understand and implement necessary total quality management models to rectify the problem,
remove the defect for a high quality product.

The successful implementation of Total quality Management model needs extensive planning
and most importantly participation of every single member who is benefitted out of the
organization(Management, suppliers, clients and even customers). Without the participation of
each and every employee, total quality management model would be a complete failure.

Total Quality Management model begins with research and collecting information about end-
users followed by planning and full participation of employees for successful implementation.
Top level Management needs to make other team members aware of the benefits of total quality
management process, importance of quality to survive in the long run and how they can
implement various TQM models by prioritizing their customers and their feedbacks.

3.1 Quality Management Tools

Quality Management tools help organization collect and analyze data for employees to easily
understand and interpret information. Quality Management models require extensive planning
and collecting relevant information about end-users. Customer feedbacks and expectations need
to be carefully monitored and evaluated to deliver superior quality products.

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Quality Management tools help employees identify the common problems which are occurring
repeatedly and also their root causes. Quality Management tools play a crucial role in improving
the quality of products and services. With the help of Quality Management tools employees can
easily collect the data as well as organize the collected data which would further help in
analyzing the same and eventually come to concrete solutions for better quality products.

Quality Management tools make the data easy to understand and enable employees to identify
processes to rectify defects and find solutions to specific problems.

Following are the quality management tools:

 Check List - Check lists are useful in collecting data and information easily .Check list
also helps employees to identify problems which prevent an organization to deliver
quality products which would meet and exceed customer expectations. Check lists are
nothing but a long list of identified problems which need to be addressed. Once you find
a solution to a particular problem, tick it immediately. Employees refer to check list to
understand whether the changes incorporated in the system have brought permanent
improvement in the organization or not?
 Pareto Chart - The credit for Pareto Chart goes to Italian Economist - Wilfredo Pareto.
Pareto Chart helps employees to identify the problems, prioritize them and also determine
their frequency in the system. Pareto Chart often represented by both bars and a line
graph identifies the most common causes of problems and the most frequently occurring
defects. Pareto Chart records the reasons which lead to maximum customer complaints
and eventually enables employees to formulate relevant strategies to rectify the most
common defects.
 The Cause and Effect Diagram - Also referred to as “Fishbone Chart” (because of its
shape which resembles the side view of a fish skeleton)and Ishikawa diagrams after its
creator Kaoru Ishikawa, Cause and Effect Diagram records causes of a particular and
specific problem .The cause and effect diagram plays a crucial role in identifying the root
cause of a particular problem and also potential factors which give rise to a common
problem at the workplace.
 Histogram - Histogram, introduced by Karl Pearson is nothing but a graphical
representation showing intensity of a particular problem. Histogram helps identify the
cause of problems in the system by the shape as well as width of the distribution.
 Scatter Diagram - Scatter Diagram is a quality management tool which helps to analyze
relationship between two variables. In a scatter chart, data is represented as points, where
each point denotes a value on the horizontal axis and vertical axis.

Scatter Diagram shows many points which show a relation between two variables.

 Graphs - Graphs are the simplest and most commonly used quality management tools.
Graphs help to identify whether processes and systems are as per the expected level or
not and if not also record the level of deviation from the standard specifications.

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4.0 Six Sigma and Quality Management
Six Sigma is a business management strategy which aims at improving the quality of processes
by minimizing and eventually removing the errors and variations. The concept of Six Sigma was
introduced by Motorola in 1986, but was popularized by Jack Welch who incorporated the
strategy in his business processes at General Electric. The concept of Six Sigma came into
existence when one of Motorola’s senior executives complained of Motorola’s bad quality. Bill
Smith eventually formulated the methodology in 1986.

Quality plays an important role in the success and failure of an organization. Neglecting an
important aspect like quality, will not let you survive in the long run.

Six Sigma ensures superior quality of products by removing the defects in the processes and
systems. Six sigma is a process which helps in improving the overall processes and systems by
identifying and eventually removing the hurdles which might stop the organization to reach the
levels of perfection. According to sigma, any sort of challenge which comes across in an
organization’s processes is considered to be a defect and needs to be eliminated.

Organizations practicing Six Sigma create special levels for employees within the organization.
Such levels are called as: “Green belts”, “Black belts” and so on. Individuals certified with any
of these belts are often experts in six sigma process. According to Six Sigma any process which
does not lead to customer satisfaction is referred to as a defect and has to be eliminated from the
system to ensure superior quality of products and services. Every organization strives hard to
maintain excellent quality of its brand and the process of six sigma ensures the same by
removing various defects and errors which come in the way of customer satisfaction.

The process of Six Sigma originated in manufacturing processes but now it finds its use in other
businesses as well. Proper budgets and resources need to be allocated for the implementation of
Six Sigma in organizations.

Following are the two Six Sigma methods:

 DMAIC
 DMADV

DMAIC focuses on improving existing business practices. DMADV, on the other hand focuses
on creating new strategies and policies.

DMAIC has Five Phases

D - Define the Problem. In the first phase, various problems which need to be addressed to are
clearly defined. Feedbacks are taken from customers as to what they feel about a particular
product or service. Feedbacks are carefully monitored to understand problem areas and their root
causes.

M - Measure and find out the key points of the current process. Once the problem is
identified, employees collect relevant data which would give an insight into current processes.

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A - Analyze the data. The information collected in the second stage is thoroughly verified. The
root cause of the defects are carefully studied and investigated as to find out how they are
affecting the entire process.

I - Improve the current processes based on the research and analysis done in the previous
stage. Efforts are made to create new projects which would ensure superior quality.

C - Control the processes so that they do not lead to defects.

DMADV Method

D - Design strategies and processes which ensure hundred percent customer satisfaction.

M - Measure and identify parameters that are important for quality.

A - Analyze and develop high level alternatives to ensure superior quality.

D - Design details and processes.

V - Verify various processes and finally implement the same.

What is Kaizen ? - Five S of Kaizen

“Kaizen” refers to a Japanese word which means “improvement” or “change for the
better”. Kaizen is defined as a continuous effort by each and every employee (from the CEO
to field staff) to ensure improvement of all processes and systems of a particular
organization. Work for a Japanese company and you would soon realize how much importance
they give to the process of Kaizen. The process of Kaizen helps Japanese companies to outshine
all other competitors by adhering to certain set policies and rules to eliminate defects and ensure
long term superior quality and eventually customer satisfaction.

Kaizen works on the following basic principle.

“Change is for good”.

Kaizen means “continuous improvement of processes and functions of an organization

through change”. In a layman’s language, Kaizen brings continuous small improvements in the
overall processes and eventually aims towards organization’s success. Japanese feel that many
small continuous changes in the systems and policies bring effective results than few major
changes.

Kaizen process aims at continuous improvement of processes not only in manufacturing

sector but all other departments as well. Implementing Kaizen tools is not the responsibility of
a single individual but involves every member who is directly associated with the organization.
Every individual, irrespective of his/her designation or level in the hierarchy needs to contribute
by incorporating small improvements and changes in the system

Following are the main elements of Six Sigma:

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  Teamwork
 Personal Discipline
 Improved Morale
 Quality Circles
 Suggestions for Improvement

4.1 Five S of Kaizen

“Five S” of Kaizen is a systematic approach which leads to foolproof systems, standard policies,
rules and regulations to give rise to a healthy work culture at the organization. You would hardly
find an individual representing a Japanese company unhappy or dissatisfied. Japanese employees
never speak ill about their organization. Yes, the process of Kaizen plays an important role in
employee satisfaction and customer satisfaction through small continuous changes and
eliminating defects. Kaizen tools give rise to a well-organized workplace which results in better
productivity and yield better results. It also leads to employees who strongly feel attached
towards the organization.

Let us understand the five S in Detail:

1. SEIRI - SEIRI stands for Sort Out. According to Seiri, employees should sort out and
organize things well. Label the items as “Necessary”, ”Critical”, ”Most Important”, “Not
needed now”, “Useless and so on. Throw what all is useless. Keep aside what all is not
needed at the moment. Items which are critical and most important should be kept at a
safe place.
2. SEITION - Seition means to Organize. Research says that employees waste half of their
precious time searching for items and important documents. Every item should have its
own space and must be kept at its place only.
3. SEISO - The word “SEISO” means shine the workplace. The workplace ought to be kept
clean. De-clutter your workstation. Necessary documents should be kept in proper folders
and files. Use cabinets and drawers to store your items.
4. SEIKETSU-SEIKETSU refers to Standardization. Every organization needs to have
certain standard rules and set policies to ensure superior quality.
5. SHITSUKE or Self Discipline - Employees need to respect organization’s policies and
adhere to rules and regulations. Self-discipline is essential. Do not attend office in
casuals. Follow work procedures and do not forget to carry your identity cards to work. It
gives you a sense of pride and respect for the organization.

Kaizen focuses on continuous small improvements and thus gives immediate results.

4.2 Role of Managers in Total Quality Management

Total Quality Management is defined as a continuous effort by management to upgrade and
improve the processes and systems to ensure superior quality products. Every organization has to
take care of its customers. Their feedbacks are essential. Total Quality management creates
processes and systems based on customer feedbacks and various researches which eventually
help in the development of organization.

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4.2.1 Managers play an important role in Total Quality Management:

Initiating and implementing total quality management programs require great amount of
planning and research. Managers need to get trained in various TQM practices before
implementing the same. There are costs involved with the entire process of total quality
management. It is the manager’s responsibility to allocate budgets for TQM at the beginning of
every financial year. Remember, you can’t crib later on. Read a lot about total Quality
management.

You need to be convinced first why quality is such an important parameter in every business. If
you yourself are not convinced, it would be very difficult for you to convince other departments
for implementing TQM. Know who your customers are? Understand your target market
carefully. Go out, meet customers and find out as to what all they expect from your brand.
Customer feedbacks play an important role in formulating strategies for total quality
management. As a manager; you need to work closely with the senior management, human
resource professionals to develop foolproof implementation strategies. Remember, a manager
has to act as a bridge between the senior management and the entire workforce.

4.2.2 The role of a manager is to act as a facilitator at the workplace. It is your duty to
assist employees in implementing TQM.

As a manager, it is your responsibility to select and appoint right individuals who can work as
line managers and take charge of the entire project. The employees, you select ought to be
reliable and diligent and should be capable enough to handle a crucial project like total quality
management. It is the manager’s responsibility to assign resources for total quality management,
allocate time for various training programs and appreciate employees who come up with various
improvement ideas and strategies which would help the organization deliver superior quality
products. Further train your subordinates to ensure smooth implementation of TQM without any
obstacles.

4.2.3 A manager must communicate the benefits of total quality management to all other
members of the organization.

Call employees on a common platform and address the benefits and importance of total quality
management. Make them understand how successful implementation of total quality
management programs would yield high quality products which would not only benefit the
organization but also the employees associated with the same. Why do we always think of
outsourcing trainers? Why can’t we train employees on our own? Believe me, as a manager if
you train your employees, the results would be better rather than an unknown face coming and
loading them with information. Do not forget, a trainer needs to be prepared for every question.
Do your homework carefully.

Remember, a manager is always a strong source of inspiration for other employees. You need to
practice total quality management yourself before expecting others to believe in the same.
Customer feedbacks should be carefully monitored and taken into consideration while
formulating company’s major strategies. Provide frequent reports to staff members highlighting
scope of improvement.

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4.2.4 Role of Customers in Total Quality Management
Total Quality management refers to a continuous effort of management along with the
employees of a particular organization to improve the quality of products and services.
Businesses need to emphasize on quality of their products rather than quantity to survive the
fierce competition. Remember in today’s scenario, there is no dearth of competitors in the
market. Why would a customer return to your organization if you do not deliver what you had
promised him initially? You can fool someone once but not twice. Quality is an important
parameter for every business and should not be ignored at any cost.

Total Quality management works on a very simple principle:

The responsibility of delivering quality products and services to customers lies on the shoulders
of every single individual who is even remotely associated with the organization. It is not only
the management but also employees irrespective of their designation, suppliers, clients,
customers who need to come up with improvement ideas to make foolproof systems and
processes to deliver quality products which meet and exceed the expectations of end- users.

4.2.5 Customers play an important role in total quality management.

What is the basic difference between a successful and an unsuccessful business?

A business is successful only when its products and services have enough buyers in the market.
Yes there are several other parameters also but customers play a crucial role in deciding the
success and failure of an organization. Business marketers need to focus on their end-users and
what exactly they expect from their organization. Customer feedbacks should be regularly and
carefully monitored before formulating any major business strategy. How can you ignore your
customers who pay for your products which eventually bring revenues to your organization and
yield higher profits? Understand the needs and demands of the customers.

Total quality management ensures that employees understand their target customers well before
making any changes in the processes and systems to deliver superior quality products for better
customer satisfaction. Infact, organizations introduce total quality management or any other
quality management process to increase their customer base and levels of customer satisfaction.
Total Quality management increases an organization’s database of loyal customers who would
not go anywhere, no matter what. Believe me, without customers a business can’t even exist.

Quality of a product is not defined only in terms of its durability, packaging, reliability, timely
delivery and so on but also a customer’s overall experience with the organization. Remember
customer dissatisfaction leads to loss of business.

In service industry, employees need to interact with the customers sensibly and with utmost care
and professionalism to expect happy and loyal customers. Design various feedback forms for the
customers for them to share what they feel about your products and services. The feedbacks may
be in favour of your organization, may not be in favour of your business.

Negative comments or feedbacks of the customers should not be ignored. As a part of total
quality management, employees should sit on a common platform, brainstorm ideas and come to

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concrete solutions which would improve the systems and processes to eventually delivery what
the customer expects. No amount of total quality management would help if you ignore your
customers.

In case of physical products, customers are satisfied when the products are:

 Durable
 Reliable
 Easy to Use
 Adaptable
 Appropriate

In case of service industry customers are satisfied only when:

 Employees are friendly and polite

 Employees are honest and do not make fake promises
 Employees are easy approachable
 Employees are willing to listen and address customer grievances
 Organizations respond to customer requests on time.

4.3 Similarities and Differences in Implementation of Quality Frameworks in

Manufacturing and Service Sector

4.3.1 Introduction

A production defect in a company like GE (General Electric) might result in that specific product
or the part being removed from the assembly line and not sent out as finished product.

However, in the service sector, a process error might prove to be costly as in the case of the
JPMC or Citigroup (banking or financial services company that have adopted Six Sigma) where
the “leverage” for each transaction is more and hence an error in a process can be magnified
several times.

A literature review of the differences between adopting Six Sigma for manufacturing and
services yields the finding that there are four things to consider before service organizations
adopt Six Sigma as a way of life in their organizations.

4.3.2 Key Similarities and Differences between Manufacturing and Service Sectors

1. First, managers in the service sector must realize that unlike in the manufacturing sector,
there are a number of processes in the banking and financial services companies (service
sector) that are of varying complexity and different levels of customization. For instance,
an assembly line in a manufacturing industry is an example of a highly standard process
that can adopt a quality framework.

However, in the banking sector, there are some processes that are highly complex and do
not lend themselves to standardization in the same way that a process in the

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 manufacturing sector does. Hence, the challenge for the service sector is to consider
which process can be mass-customized meaning that the process is the same for all
customers and in all conditions and then apply the quality frameworks to achieve process
excellence.

An example of a mass customized process in the banking industry or for that matter any
service sector company would be the payroll and the credit card accounting processes
that lend themselves to standardization. Similarly, in a fast food chain, the processes lend
themselves to a high degree of standardization and hence these can selected for
application of the quality frameworks.

2. The second point to be considered is one of the cardinal principles of quality control: To
define what is a defect and how is one going to measure it? In manufacturing industries it
is often easier to spot defects as visual inspection or even advanced quality control
processes can often spot defects as they relate to the quality of the product manufactured.

However, in service companies, defining a defect is a challenge as the conflict between

quality as demanded by the customer and the quality of the service as offered by the
service provider are two different things. Owing to the perceptual nature of arriving at an
understanding of what a defect is, it is often helpful to define the defects in terms of
customers lost, customer satisfaction ratings and service turnaround times.

What these three parameters mean is that the concept of quality in the service sector is
often dictated by the customer. Hence, efforts must be made to understand the customer
point of view by using skilled researchers and service representatives to implement a
“feedback loop” that feeds into the system prevalent in the service industry and self
corrects (in the ideal case) or is prodded to do so.

3. The third point relates to the way in which quality slippages are analyzed within the
service sector company. Continuing the same point made in the preceding paragraph, it is
important to find out the “root cause” behind the defect or the deficiency in service and
then act accordingly. It might be the case that complex processes with numerous rules
governing each step of the process (that is the hallmark of banking and financial service
companies) might need to be analyzed minutely for possible root causes for the defect.

4.3.3 Leadership Practices

The leadership and management practices that have been found to have contributed to the
successful implementation of the quality frameworks would be analyzed in this section. As the
case study pertaining to the Dow Chemical implementation of Six Sigma framework shows,
there needs to be sustained focus on the goals and objectives that have been set for the Six Sigma
implementation.

The analysis of the Case Study of Dow Chemical shows how the leadership implemented a
“Staircase of Change Leadership” model that has the ten attributes progressing from each step
starting with the enunciation of “vision” and culminating in the success step of the staircase that
represents the pinnacle of achievement for Dow.

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4.3.4 Case Study of Dow Chemical

The Dow Staircase of Change Leadership consists of the following steps: Vision, Values,
Attitude, Language, Behaviours, Best Practices, Articulated Strategy, Implementation, Culture
Change and Success. The emphasis at each step of the model is to have a coherent strategy to
implement Six Sigma and ensure that it is driven from the top as well as embraced by the
bottom.

In short a combination of top driven and bottom-up strategies that enunciate a clear vision to be
the leader in achieving Six Sigma compliance is the focus of the model as followed by Dow
Chemicals.

The key points about this model are the emphasis on “terminology” that is unique to the
framework and its implementation (the language step), the necessary “behaviours” that are
needed to be followed by each employee and which were communicated as part of “road shows”
and the adoption of best practices from across the industry and customizing them to the specific
case of Dow Chemicals.

4.3.5 Case Study of Doosan Company

The other case study that is being analyzed for Leadership practices is the one that has been
followed by the Doosan Company in South Korea. Under the six-sigma framework adopted by
Doosan, there are five elements in the model that are aligned with each other in pursuit of the
objective of quality excellence.

The five elements that Doosan incorporates in its model are

1. top-level management commitment,

2. stakeholder involvement,
3. training schemes,
4. project team activities, and
5. measurement system

An analysis of the elements reveals the fact that each of them cannot function without the
cooperation and collaboration of the other and a coordinated and synchronous approach towards
pursuing the Six Sigma framework is what gives Doosan the edge over its competitors.

The PDSA (Plan-Do-Study-Act) Technique for Quality Improvement

4.4 What is the PDSA Technique ?

The PDSA or the Plan-Do-Study-Act technique is a famous QI or Quality Improvement Tool or

Initiative that helps organizations enhance the quality of their products and services. The PDSA
technique hinges on the iterative process wherein each cycle begins with planning the quality
improvement, actualizing the method or the process for QI, studying the results to determine
whether the QI was successful or not, and then acting upon the feedback for the next cycle to
incorporate such feedback.

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Definitions

As the literature mentions, “The PDSA Cycle is a systematic series of steps for gaining valuable
learning and knowledge for the continual improvement of a product or process. Also known as
the Deming Wheel, or Deming Cycle, the concept and application was first introduced to Dr.
Deming by his mentor, Walter Shewhart of the famous Bell Laboratories in New York”
(Deming.org).

This means that the emphasis on continuous improvement of products and services through
iterative cycles starting with planning and then performing the steps needed to enhance the
quality, studying the results to determine what went right and what went wrong, and lastly,
incorporating the feedback into the next cycle to make the process better lies at the heart of the
PDSA technique.

(Source: https://www.deming.org/theman/theories/pdsacycle)

4.5 Components of the PDSA Technique

As the figure above demonstrates, the PDSA Cycle starts with the Plan step that entails
identifying a goal or an objective and then formulating a plan of action wherein the success
metrics or the measures that indicate the determination of the success of the plan are defined
followed by a well thought-out strategy to put the plan into action.

Next is the Do Step wherein the actual implementation of the strategies of the plan is done.

After that is the Study Step wherein the outcomes of the implementation are monitored and
measured and the determination of the success or otherwise of the plan is made.

The final step is the Act phase wherein the feedback from the previous step is integrated into the
learning from the entire process and then based on the same, the goals are adjusted as well as the

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methods changed to ensure the success of the next iteration and this can also include
reformulation or recalibration of the strategy altogether.

4.6 What Each Step in the PDSA Technique Means and How Each Step Manifests

To explain in plain words, the first step in the PDSA cycle is the planning phase where the
needed process improvements are finalized in line with the overall goals and objectives for
which the process improvement or Quality Improvement is needed.

Usually, this step is the phase when organizations recognize the need for Quality Improvement
and determine the parameters or the measurements that are required to achieve the objectives.

The next step is the Doing phase where the planned improvements are put in place, and the
process for the manufacture of the product or the service is modified and enhanced according to
the desired goals.

For instance, if the purpose of the Quality Improvement initiative is to decrease the number of
defects as measured by percentages to less than 3%, the planning phase determines this measure
as well as formulates the needed improvements to the process to ensure that defects are kept
within the range.

The Do step is the phase when the manufacturing process is enhanced by actualizing the process
improvements that are needed to keep the defects within the range. This step is the meat of the
PDSA cycle wherein it is the phase where the actual work to enhance quality is done. This is
followed by the Study step wherein the results from the QI are measured to determine whether
the process improvement yielded the necessary results.

4.7 Taking a Real World Example and Applying Theory to Practice

For instance, in our example, once the process improvement has been put in place, the Study
Phase reviews the feedback in terms of whether the goals of keeping the percentage of defects to
less than 3% have been met. In case such measures are found to have not been met, then the
possible reasons for failure as well as the corrective steps and measures needed to achieve the
goals in the next step are the determined.

This can take the form of studying the process to see how it can be improved the next time. The
Study step is also the step where the entire cycle is matched from beginning to end and the
determination of success or failure are done accordingly. Indeed, if the QI meets its objectives,
then there is no need to repeat the cycle and the final step, which is the Act Phase, can then close
out the changes and make them permanent.

However, in case it is found that the QI did not meet its objectives, the “Act” step provides the
opportunity to put corrective measures in place by studying the feedback about what went wrong
and then acting upon the feedback by starting the next iteration again from the Planning Step all
the way to the end step which is the Acting on the feedback step.

4.8 Conclusion: How Implementing the PDSA Technique can help Organizations

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In this way, the PDSA technique is an iterative or cyclical process that repeats itself until the
desired results are actualized. Since each iteration improves upon the previous cycle, the end
result of successive iterations is that the Quality of the Product or Service is significantly
enhanced to the point where more enhancements are not needed and the process for making the
product or service is deemed to be of the highest quality.

In this way, the PDSA technique offers a good way to put in place quality improvement
initiatives that yield the desired results and ensure that the process is free from defects.

4.9 References

Butcher, K.S.(1993). TQM: the Oregon state university library’s experience. Journal of library
administration, 10(1/2), 1993,45-56.

Butternick, Nigel B.(1993). Total quality management in the university library. Library
management, 14(3), 1993, 28-31.

Clack, M.E. (1993). Organizational development and TQM: The Harvard college library’s
experience. Journal of library administration, 18(1/2),1993,29-43.

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