Quality Planning and Management:

Endterm Examination Report

Submitted by:
Dinesh Murali Krishna
1401072

Contents
Question-1:......................................................................................................................................3
Role of Six Sigma, Lean and TQM in Quality Management:.........................................................3
Six Sigma and Quality:................................................................................................................3
DMAIC method:......................................................................................................................4
DMADV Method:....................................................................................................................5
How does Six Sigma help in improving quality?........................................................................5
Lean Management System:..........................................................................................................6
Lean Principles:...........................................................................................................................7
How does Lean help in improving Quality?................................................................................8
Total Quality Management:.........................................................................................................9
The Primary Elements of TQM...................................................................................................9
How TQM helps in improving quality?.....................................................................................10
Question-2:.....................................................................................................................................11
Change is a way of Life..............................................................................................................11
Why change is important?.........................................................................................................11
Organizational Change:.............................................................................................................11
Organizational Culture and quality management:.....................................................................11
Is Culture a driver of Performance excellence?.........................................................................12
Best Performance Excellence practices:....................................................................................12
How organizations build PE best practices?..............................................................................13
Change Management and Critical People in implementing PE:...............................................14
Role of Leadership:................................................................................................................15
Role of HR:............................................................................................................................15
Role of Employees:................................................................................................................16
Sustaining Total Quality and Organizational Change:...............................................................16
Conclusion:................................................................................................................................16

Question-1:
Role of Six Sigma, Lean and TQM in Quality Management:
Quality management is the act of overseeing activities and tasks needed to maintain desired level
of excellence and performance. It includes creating and implementing quality planning and
assurance, as well as quality control and quality improvement.
Managing Quality and performance excellence has been worked upon by Japanese
manufacturing companies in 19th century. Toyota has pioneered with Just-intime
manufacturing strategy. It also followed by Lean strategy.
Six Sigma and Quality:
Six Sigma is a business management strategy which aims at improving the quality of processes
by minimizing and eventually removing the errors and variations. Motorola worked on quality
improvement by inventing Six Sigma. It was popularized by Jack Welch of GE, who
standardized six sigma across GE.
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 organizations
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.
Six sigma is implemented in 2-methods. DMAIC and DMADV

DMAIC method:

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.
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.
How does Six Sigma help in improving quality?
Six Sigma ensures identification of proper organization goals and objectives
Alignment of Team with the organization goals
Leadership focus on quality of parts/services is ensured.
Ensuring training, certification and infrastructure for the employees to ensure quality.
A focus on continual improvement, as Six Sigma process assess the process quality from
time to time by conducting regular audits.

 Execution Accountability: Responsibility of people involved with each process is

identified and quantified. This will lead to higher employee engagement with the
organizational goals.
Identification of value adding process and improving them.
Identifying the issues that cause problems through fish-bone and other analysis
frameworks and addressing them.
Innovation culture throughout firm improves when addressing the root-causes.
Improved customer focus.
In conclusion, Six Sigmas approach and deployment makes it distinguishable from other quality
initiatives. The Six Sigma approach involves the use of statistical tools within a structured
methodology for gaining the knowledge needed to achieve better, faster and less expensive
products and services than the competition. The repeated, disciplined application of the master
strategy on project after project, where the projects are selected based on key business objectives,
is what drives dollars to the bottom line, resulting in impressive profits. Moreover, fueled by the
bottom line improvement, top management will continuously be committed to this approach, the
work culture will be constantly nurtured, customers will definitely be satisfied, and Total Quality
will ultimately be achieved.
Lean Management System:
Lean is defined as the systematic removal of waste by all members of the organization from all
areas of the values stream where value stream mapping is mapping and analyzing the activities
in the processes. By introducing a network of key suppliers and being in good relationship with
them will create a sense of shared destiny. This will enable organizations to reduce cost, enable
information sharing better than before and create a strong bond with suppliers. Even though
various supply systems shows different characteristics, lean management provides a competitive
advantage to them. Lean is the manufacturing philosophy of Toyota production system.
Lean helps in identifying the over burden and wastage due to unevenness in work load. This
helps in streamlining the resources and improves efficiency through wastage reduction.

Lean Principles:

Identify Value: Value is determined by the end customers and this should be identified.

Map the Value Stream: After the identification of the value, there should map out of how
this value is to be delivered while eliminating the steps that do not add value.

Create Flow: There should be a continuous flow from the beginning to the end of the
value stream.

Establish Pull: Relay information from downstream entity, i.e. customers to upstream
operation about the product/service required, the desired quantity,and when and where it is
needed.

Seek Perfection: Poor quality creates waste. Striving for excellence is an essential part of a lean
supply chain. Once the previous 4 principles are established, the cycle once again begins to
achieve perfection.
According to various lean frameworks, wastage is produced as per the following ways in a
system:
Over Production: Production of more than what is necessary

Waiting: Inactivity in a process because one or more activities has not been delivered in
time.

Transport: Unnecessary movement of materials from one operation to another.

Motion: Unnecessary movement of employees during work.

Extra Processing: Unnecessary processing, rework that doesnt add value to the end
customers.

Defects: Products or Services that do not match the specification or customers

expectation.

This causes rework.

Inventory: Raw materials, end goods, work in progress.

Underutilisation of Staff: Underutilisation of ideas and creative inputs. Staffs waiting for others
to finish the activity they are doing or their work.
These wastages can be reduced by the following solution approaches:
Just In Time (JIT): The purpose of JIT is to respond more quickly to push and pull of
organizations supply chain. JIT is a philosophy which is focused on continuous improvement and
waste elimination in the process. JIT demands on-time delivery, quality, minimal inventories and
cost reduction. Though just in time; cause congestion in the supply chain, leading to delays,
pollution and shortage of workers.
5 Ss: The simplicity of the 5 Ss is its main strength. They are:

Sort Out: Organize the things and eliminate what is unnecessary.

Systematise: Arrange the things in order so that they can are easily accessed whenever
needed.

Scrub: There should be no dirt in the working area. The machines and the working
environment should be clean and tidy.

Standardise: Maintain a pleasant environment.

Sustain: Standardise the previous 4 Ss and constantly improve them.

Continuous Improvement: The concept of continuous improvement came from early quality
guru Jurans work. Juran Trilogy defined Quality control, quality improvement and quality
planning for the improvement in quality (Juran, 1986). Ishikawa developed the basic 7 tools of
quality which also resulted in continuous improvement (Ishikawa, 1989). Continuous
Improvement is characterized by TQM and JIT approaches.
How does Lean help in improving Quality?
Identifies the unevenness in resource allocation. This means some people in an
organization might be over working while someone else is waiting without being utilized
to full scale. The underutilized resources are identified through lean frameworks and thus
workforce and other resources are re-allotted to reduce underutilization.
Better cycle times: By reducing waste processes in a system, overall cycle time of a
process for delivering product/service is reduced. This means the capacity of the
organization is increased by lean approaches.
Improved Customer satisfaction: As discussed above, lesser process time means faster
delivery to customer, which means higher customer satisfaction due to less waiting
periods.
Higher employee satisfaction: Due to reduction in unevenness in workload distribution,
employees across organization have similar workloads, thus eliminating the differences
among workforce and thus higher employee morale.

Total Quality Management:

Total Quality Management (TQM) is a management approach that originated in the 1950s and
has steadily become more popular since the early 1980s. Total quality is a description of the
culture, attitude and organization of a company that strives to provide customers with products
and services that satisfy their needs. The culture requires quality in all aspects of the companys
operations, with processes being done right the first time and defects and waste eradicated from
operations.
The Primary Elements of TQM

Total quality management can be summarized as a management system for a customer-focused

organization that involves all employees in continual improvement. It uses strategy, data, and
effective communications to integrate the quality discipline into the culture and activities of the
organization.

Customer-focused. The customer ultimately determines the level of quality. No matter

what an organization does to foster quality improvementtraining employees,
integrating quality into the design process, upgrading computers or software, or buying
new measuring toolsthe customer determines whether the efforts were worthwhile.

Total employee involvement. All employees participate in working toward common

goals. Total employee commitment can only be obtained after fear has been driven from
the workplace, when empowerment has occurred, and management has provided the
proper environment. High-performance work systems integrate continuous

improvement efforts with normal business operations. Self-managed work teams are
one form of empowerment.

Process-centered. A fundamental part of TQM is a focus on process thinking. A process

is a series of steps that take inputs from suppliers (internal or external) and transforms
them into outputs that are delivered to customers (again, either internal or external). The
steps required to carry out the process are defined, and performance measures are
continuously monitored in order to detect unexpected variation.

Integrated system. Although an organization may consist of many different functional

specialties often organized into vertically structured departments, it is the horizontal
processes interconnecting these functions that are the focus of TQM.
o

Micro-processes add up to larger processes, and all processes aggregate into

the business processes required for defining and implementing strategy.
Everyone must understand the vision, mission, and guiding principles as well
as the quality policies, objectives, and critical processes of the organization.
Business performance must be monitored and communicated continuously.

An integrated business system may be modeled after the Baldrige National

Quality Program criteria and/or incorporate the ISO 9000 standards. Every
organization has a unique work culture, and it is virtually impossible to
achieve excellence in its products and services unless a good quality culture
has been fostered. Thus, an integrated system connects business improvement
elements in an attempt to continually improve and exceed the expectations of
customers, employees, and other stakeholders.

Strategic and systematic approach. A critical part of the management of quality is the
strategic and systematic approach to achieving an organizations vision, mission, and
goals. This process, called strategic planning or strategic management, includes the
formulation of a strategic plan that integrates quality as a core component.

Continual improvement. A major thrust of TQM is continual process improvement.

Continual improvement drives an organization to be both analytical and creative in
finding ways to become more competitive and more effective at meeting stakeholder
expectations.

Fact-based decision making. In order to know how well an organization is performing,

data on performance measures are necessary. TQM requires that an organization
continually collect and analyze data in order to improve decision making accuracy,
achieve consensus, and allow prediction based on past history.

Communications. During times of organizational change, as well as part of day-to-day

operation, effective communications plays a large part in maintaining morale and in
motivating employees at all levels. Communications involve strategies, method, and
timeliness.

How TQM helps in improving quality?

Improves decision making practices based on facts
Promotes continual improvement similar to lean and si sigma processes
Improves organizational vision, mission and goals through strategic and systematic
approaches
Ensures Leadership commitment to ensuring quality
Involves every employee and empowers them through trainings
Ensures customer satisfaction through customer focused approach

Question-2:
Change is a way of Life
Change is a way of life for organizations pursuing performance excellence.
Why change is important?
Change is important for any organization due to following reasons;
a. Customer needs and preferences change with time
b. New technologies emerge in market
c. Competitors gain cost advantage through new practices
d. Employees get demotivated by doing same routine daily
e. Organizations need to grow, thus making way for newer ideas, markets etc.,
Organizational Change:
Organizational change is both the process in which an organization changes its structure,
strategies, operational methods, technologies, or organizational culture to affect change within
the organization and the effects of these changes on the organization. Organizational change can
be continuous or occur for distinct periods of time.
Organizational Culture and quality management:
Organizational Culture is the set of practices, values and beliefs shared by employees of an
organization. Organizational cultural values are often seen in vision and mission statements.
Competing values framework, CVF can be used to explore the deep structures of organizational
culture about compliance, motives, leadership, decision making, effectiveness, and
organizational forms in the organization.

From a quality management perspective, as firms performing TQM needs to change, Culture
can be called as readiness and responsiveness of an organization to change.
Is Culture a driver of Performance excellence?
Organizational culture defines how responsive and adaptive is an organization to change.
Performance excellence requires constant adaptation to externalities, like change in technology
and market preferences.
For example, Kodak was not adaptive and believed that film cameras will come back, thus lost in
competition. Similarly NOKIA failed to notice the power of Android operating system and thus
had to sell off its mobile phone division.
Organizations that have a change culture imbibed in them survived hard times, like OLA cabs,
which started with car rentals idea quickly understood the market need for cab services and thus
grew rapidly.
Best Performance Excellence practices:
Baldridge criteria for performance excellence states that,

The Criteria for Performance Excellence is a unique leadership and management tool in
that it enables people to actually see the systemic nature of their organization in real time. This
affords them an invaluable opportunity to improve working in the organization's systems while
also working on improving the various systems and the organization as a whole. As shown in the
figure below, from top to bottom, the framework is designed to present, connect, and integrate
each of the basic systems.

In addition to Baldridge framework, the following are some of the best practices in performance
excellence.

Focus on customers to listen and anticipate their needs, to build relationships and
engage customers so that they are committed to your organization, are loyal, and are willing to
advocate for and recommend your organization to others.
Engage your workforce so that they are satisfied, capable, and fully motivated to reach
high performance, to serve customers, and to achieve organization objectives.
Focus on your processes so that you can optimize your resources and deliver products,
services, and programs that satisfy fully satisfy customer needs and create value for the
enterprise.
Measure performance, both at the day-to-day operating level as well as the strategic level
ensuring that facts (rather than intuition) become the basis for organizational decision making
and improvement.
Set and deploy strategy to set a course for the future, a grand vision for the
organization.
Have effective leadership that sets vision; aligns, guides, and manages the organization;
focuses on workforce, customers, and partners; communicates effectively; and ensures
accountability, transparency, ethical behavior, support of key communities.
How organizations build PE best practices?
Organizations can build their own PE practices by following similar lines of Baldridge
framework etc.,

Organizations start this by conducting studies and documenting the best outputs and also
conducting periodic audits to measure the performance is upto the desired level.
Knowledge Management: Taking my previous organization, GE Aviation (aircraft engine design
department) as example, incentive is given in form of additional points during appraisal based on
number of design reviews a employee has written. A design review contains best practices and
other documentation which was learning from the current project.
External Focus: In addition, employees require external focus to understand the market needs.
Facebook lost in the race by not having external focus and developing messenger app earlier
and had to buy Whatsapp for $17 Billion.
Thus, organizations can build PE best practices by imbibing documentation of best practices,
also known as Knowledge Management and having incentives for having external focus.
Change Management and Critical People in implementing PE:

Any change in an organization is built around People, Tools and Processes. Once a process is
established, it is then taken through 5 steps and further change action is planned based on the
same. The 5 steps are
1) Assess
2) Design
3) Implement
4) Manage Change

5) Evaluate
By following these 5 steps, change is managed in an organization.
Though every employee plays role in organizational change, Leadership and HR play key role in
implementing a change in organizational culture.
Role of Leadership:
Leadership role is to identify the right vision and mission for the organization and
formulate a vision statement for the organization.
Then, Leadership team, along with senior managers understand the change required in
terms of people, tools and processes required in implementing the change
Once this is done, planning is done for implementation of the same
Role of HR:
Every employee resists change. The following graph shows stages of reactions for a change in
employee.

Role of HR is to take the employee from Resistance to Exploration.

HR is part of formulating the change and planning the implementation of it
Major work of HR starts under change implementation stage

 Every change begins with resistance from employees

HR needs to work with employees in understanding their needs and the reason for their
resistance and try to take steps in implementing the change along with senior managers
Role of Employees:
Employees must understand the reason behind the change and try to fit into the new
organizational culture at the earliest possible time. They must also ensure that low resistance is
faced by the organization from their colleagues.
Sustaining Total Quality and Organizational Change:
In 21st century, where technology changes every year, Total Quality and Effectiveness are not
absolute terms, but are relative compared to industry and technology standards. To sustain Total
quality in 21st century also means to sustain competitive position in terms of cost and processes
advantage. TQ can be sustained in an organization using the following steps.
Thus, quality should be viewed as a constant journey with industry and organizational
culture should facilitate this.
Create a learning organization
o Planning
o Execution of plans
o Assessment of progress
o Revision of plans based on assessment findings
TATA Motors in India can be said as example for sustaining quality and yet changing
organizational culture for a long period of time. TATA Motors started as a truck assembling
company, entered painting of cars and started designing low cost automobiles and hybrid
vehicles now. They have changed constantly with change and maintained quality across their
products and people. This was done using a top-down approach, where a change is
communicated from Mr. Ratan Tata himself for every major organizational change required in
terms of product or process.
Conclusion:
Thus, Total quality can be maintained in a firm by making change a constant journey and
imbibing adaptation as a part of organizational culture.