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TQM AND HR III Semester Assignment TQM and HR INDEX 1. Explain the various levels of SEI-CMM in detail.............2 2. Explain the service quality model and various service quality dimensions......................................................6 3. What are the various clauses of ISO 9001:2000? Explain Product Realisation clause in detail...........................10 4. Discuss the importance of leadership and culture for effective TQM implementation in the organisations..............15 5. How should TQM be aligned with the business strategy? Discuss 16 6. What are the various building blocks of TQM................18 7. Explain Juran on Quality in detail? Compare it with Deming’s principles of Quality..........................................20 8. Explain Malcom Baldrige National Quality award and European Quality award..................................................23 9. Explain the role of environmental management system in TQM. 27 10. Explain the role of HR promoting TQM in an organisation....31 Gayathri Shankarram Registration Number: 200308104 1

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III Semester Assignment

TQM and HR


1. Explain the various levels of SEI-CMM in detail....................................................................2

2. Explain the service quality model and various service quality dimensions......................6

3. What are the various clauses of ISO 9001:2000? Explain Product Realisation clause in detail...............................................................................................................................................10

4. Discuss the importance of leadership and culture for effective TQM implementation in the organisations...........................................................................................................................15

5. How should TQM be aligned with the business strategy? Discuss..................................16

6. What are the various building blocks of TQM..................................................................18

7. Explain Juran on Quality in detail? Compare it with Deming’s principles of Quality.20

8. Explain Malcom Baldrige National Quality award and European Quality award.......23

9. Explain the role of environmental management system in TQM....................................27

10. Explain the role of HR promoting TQM in an organisation.....................................................31

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1. Explain the various levels of SEI-CMM in detail.Continuous process improvement is based on many small, evolutionary steps rather than revolutionary innovations. The staged structure of the CMM is based on principles of product quality espoused by Walter Shewart, W. Edwards Deming, Joseph Juran, and Philip Crosby. The CMM provides a framework for organizing these evolutionary steps into five maturity levels that lay successive foundations for continuous process improvement. These five maturity levels define an ordinal scale for measuring the maturity of an organization's software process and for evaluating its software process capability. The levels also help an organization prioritize its improvement efforts.

A maturity level is a well-defined evolutionary plateau toward achieving a mature software process. Each maturity level comprises a set of process goals that, when satisfied, stabilize an important component of the software process. Achieving each level of the maturity framework establishes a different component in the software process, resulting in an increase in the process capability of the organization.

Five Maturity Levels

Organizing the CMM into the five levels shown in Fig. prioritizes improvement actions for increasing software process maturity. The labeled arrows in Fig. indicate the type of process capability being institutionalized by the organization at each step of the maturity framework.

Level 1: InitialThis process is characterized as ad hoc, and occasionally even chaotic. Few processes are defined, and success depends on the individuals’ efforts and heroics.

Understanding the initial maturity level

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Performance driven by the competence and heroics of the people doing the work. Consistency and compliance to standards driven by management priorities – usually schedule

is top priority High quality and exceptional performance possible so long as the best people can be hired. Unpredictability- For good or ill- Characterizes the initial level organisation.

Level 2: Repeatable Basic project management processes are established to track cost, schedule and functionality. The necessary process discipline is in place to repeat earlier successes on projects with similar applications. The KPAs that are adhered to at this level are: Requirement management (RM) – Plan, manage, analyze requirements Software project planning (PP) – Project and increment planning SW project tracking, oversight (PT) – Track production versus plans, targets SW subcontract management (SM) – Select, manage qualified contractors SW quality assurance (QA) – Product verification, certification SW configuration management (CM) – Engineering change

Understanding the repeatable maturity level: Management must “Walk the talk” to initiate an improvement effort. Only with management discipline will good software engineering practices be retained in the

crunch. Management processes establish role models for process improvement. Management – And process – Discipline empowers the engineering processes and the

technical staff.

Key process area

A reasonable software process is: Practiced Documented Enforced Trained Measured Able to improve.

Level 3: DefinedManagement and engineering activities are documented, standardized and integrated into a family of standard software process for the organization. Projects use a tailored version of the organization’s standard software process for developing and maintaining software. The additional KPAs that are in compliance at this level over Level 2 are:

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Software configuration management.Software quality assuranceSoftware subcontract management.Software project tracking and oversight.Software project planningRequirement management

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Organization process focus (PF) – Organization responsibilities identified Organization process definition (PD) – Develop, maintain software assets Training program (TP) – Develop team skills, knowledge Integrated SW management (IM) – Integrate SW and management activities Software product engineering (PE) – Well defined engineering process Intergroup coordination (IC) – Intergroup activities Peer Reviews (PR) – Identifying defects early, objectively

Understanding defined maturity level: To control a process, it must be well understood. Identify the inputs, how they will affect the process and their readiness criteria. Identify the outputs and the completion criteria for the outputs. Establish a shared understanding of how the process works and the role of each participant.

Key Process area:

A well defined process can be characterised by: Readiness criteria Inputs Standards and procedures of performing the work. Verification mechanisms Outputs Complexion criteria

Level 4: ManagedDetailed measures of the software process and product quality are collected. Software processes and products are quantitatively understood and controlled. The KPAs addressed at this level additionally are:

Quantitative process management (QP) –Control process performance Software quality management (QM) – Develop, maintain SW process assets

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Peer reviewsInter group coordination.Software product engineering.Integrated software management.Training program.Organisation process definitionOrganisation process focus

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Understanding the managed maturity levels:

The key process area:

Level 5: OptimizingContinuous process improvement is facilitated by quantitative feedback from the process and from piloting innovative ideas and technologies. The KPAs adhered to at this level are: • Defect prevention (DP) – Identify, track sources of defects • Technology change management (TM) – Identify beneficial new technologies • Process change management (PC) – Continually improving performance

Understanding the Optimizing maturity level

Key process areas:

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Fix the problem in the process

Control chart with special causes


Software quality managementQuantitative process management

New zone of quality control

Quality Improvement

Original zone of quality control

Chronic Waste

Control chart with common cause

Process change managementTechnology change managementDefect prevention

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The CMM represents a "common sense engineering" approach to software process improvement. The maturity levels, key process areas, common features, and key practices have been extensively discussed and reviewed within the software community. While the CMM is not perfect, it does represent a broad consensus of the software community and is a useful tool for guiding software process improvement efforts. The CMM provides a conceptual structure for improving the management and development of software products in a disciplined and consistent way. It does not guarantee that software products will be successfully built or that all problems in software engineering will be adequately resolved. However, current reports from CMM-based improvement programs indicate that it can improve the likelihood with which a software organization can achieve its cost, quality, and productivity goals. The CMM identifies practices for a mature software process and provides examples of the state-of-the-practice (and in some cases, the state-of-the-art), but it is not meant to be either exhaustive or dictatorial. The CMM identifies the characteristics of an effective software process, but the mature organization addresses all issues essential to a successful project, including people and technology, as well as process.

2. Explain the service quality model and various service quality dimensions.Every customer before hiring a particular service or a product has certain expectation levels. These expectation levels are developed mainly due to word of mouth communication from friends and relative, personal needs of the customer and past experience of the customer with the same company. Based on the experience customer forms his perception about service quality which is called “Perceived Service”. If there is a gap between his expectation before hiring the service and perceived service it is called “GAP5”.

Gap Analysis Model: The starting premise for the model is that “perceived service quality (or satisfaction with service) is a function of the difference between expected service levels and delivered (or perceived) service.” If this premise holds, as the authors found it does in field research for several financial and other service companies, then the key to customer satisfaction is managing both customer expectations and actual delivered service. The following diagram, which summarizes how perceived service can diverge from expected service, constitutes the essence of the Gap Analysis Model.

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Word of mouth communications

Personal needs

Perceived Service

Expected service

Past Experience

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Gap1: Between customer expectation and management perception of customer expectationsThis is the first and possibly most critical step in delivering quality service. Organizations who suspect they may be suffering from this gap should ask one simple question: do we know what our customers expect from us with respect to service? Based on interviews, the authors found that executives’ perceptions of superior quality service are largely congruent with customers’ expectations. However, some significant discrepancies did often arise. First, although executives may have a broad understanding of customers’ perceptions of superior quality service, they may not know about certain service features that are critical to meeting customers’ desires. Second, some executives may not know the levels of performance customers expect.

Gap 1 may stem from any combination of the following factors:Key factors: Insufficient market research Inadequate use of market research Lack of interaction between management and customers Insufficient communication between contact employee and managers Too many layers between contact personnel and top management.

Gap2: Between management perception of customer expectation and service quality specificationGap 2 arises when there is a discrepancy between what managers perceive that customers expect and the actual standards that they (the managers) set for service delivery. This gap may occur when management is aware of customers’ expectations but may not be willing or able to put systems in place that meet or exceed those expectations. For example, putting systems in place may require changes in fundamental organizational work processes, acquiring expensive new technology, or refocusing organizational attitudes to understand service from the customer’s point of view.

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Management perception of customer expectation


Management perception of customer expectation

Service Quality Specifications

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Key factors: Inadequate management commitment to service quality Absence of formal process for setting service quality goals Inadequate standardization of task Perception of feasibility – that customer expectation cannot be met.

Gap 3: Between service quality specification and service deliveryOrganizational policies and standards for service levels may be in place, but is front line staff following them? A very common gap in the service industry, Gap 3 is the difference between organizational service specifications and actual levels of service delivery. Organizations specializing in providing highly interactive, labour-intensive services in a number of locations are especially vulnerable to this gap because: Customer interactions are more frequent; Opportunities for variation in service in these high-volume organizations

are greater Quality control (employee assessment) becomes complicated in organizations with multiple layers.

Gap 3 occurs when employees are unable or unwilling to perform to the level of service desired by management. Seven key factors contribute to this unwillingness/inability:

Key factors: Role ambiguity Role conflict Employee job fit Fit between technology and job Supervisory control systems Perceived control Team work

Gap 4: Between service delivery and external communication to customerYour advertisements brag about your organization’s exceptional service, and raise your customers’ expectations. But are you able to deliver on the promise? Customers perceive that organizations are delivering low-quality service when a gap appears between promised levels of service and the service that is actually delivered. This gap is created when advertising, personal selling or public relations over-promise or misrepresent service

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Service Delivery

Service quality Specification


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levels. This gap can also occur when companies do not inform their customers of special “behind-the scenes” efforts that are designed to serve to improve service levels, but are not visible to customers. Making customers aware of these standards or efforts can heighten their service perceptions. If either or both of the following indicators are present, Gap 4 probably exists. Inadequate horizontal communication within and across departments (operations, marketing, and human resources) and branches can be responsible for Gap 4. This problem can be alleviated when customer-contact staff have input in the planning and execution of advertising, and/or are made aware of external communications aimed at customers before it “hits the streets”. Also, when customer service and sales functions are separate and distinct, the sales force must communicate with customer-contact staff to discuss the level of service that can be promised to customers. Another major cause of Gap 4 is a propensity to over promise in external communications. As a result, the company’s promises do not accurately reflect what customers receive in the service encounter. Commonly, a higher degree of discrepancy occurs when there is increasing pressure inside the company to generate new business or when competing organizations over promise to gain new customers.

Key factors: Inadequate communication between sales people and operations. Inadequate communication between advertising and operations Differences in policies and procedures across departments Puffery in advertising. Puffery in personal selling.

Service Quality Model:

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Dimension of service quality modelService has now been shown to be an important part of customer's experience on the web (as it always has been in the offline world). In fact, various research firms are advising all companies to focus on making the most of their customer relationships and managing online and offline sales channels. This means, in short, making sure that customer is not only highly satisfied, but will stay with you for the long term.

Factor analysis of consumer responses resulted in a conclusion that there are 5 key dimensions of service quality.

Reliability - the ability to deliver promised services in a dependable, accurate manner.

Responsiveness - the willingness to help customers and provide prompt service. Empathy - the degree to which customers are treated as individuals. Assurance - the ability to inspire trust and confidence. Tangibles - physical elements of the service such as facilities and equipment.

Dimension Refers to Specific criteria that customers use

RELIABILITYDelivering on promises

Your ability to perform the promised service dependably and accurately


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Word of mouth Personal Needs Past Experience

Perceived Service

Expected service

Service Delivery

Service Quality Specs

Management perception of customer Expectations

External Communication to

customerGap 1

Gap 3

Gap 2

Gap 4

Service Provider

CustomerGap 5


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ASSURANCEInspiring trust and confidence

The knowledge and courtesy of staff; their ability to inspire trust and confidence

Staff competenceRespect for customersCredibilityProbity and confidentialitySafety and security

TANGIBLESRepresenting the service physically

The physical representations or images of your service

Physical facilitiesEquipmentTechnologyEmployeesCommunication materials

EMPATHYTreating customers as individuals

The caring individualised attention you provide your customers

Access (to staff, services, information)Communication (clear, appropriate, timely)Understanding the customerServices appropriate for customers' needsIndividualised attention

RESPONSIVENESSBeing willing to help

Your willingness to help customers and to provide prompt service

Willingness to helpPrompt attention to requests, questionsProblem resolutionComplaint handlingFlexibility

3. What are the various clauses of ISO 9001:2000? Explain Product Realisation clause in detail.

ISO 9001:2000 specifies requirements for a quality management system where an organization

1. Needs to demonstrate its ability to consistently provide product that meets customer and applicable regulatory requirements, and

2. Aims to enhance customer satisfaction through the effective application of the system, including processes for continual improvement of the system and the assurance of conformity to customer and applicable regulatory requirements.

All requirements of this International Standard are generic and are intended to be applicable to all organizations, regardless of type, size and product provided.Where any requirement(s) of this International Standard cannot be applied due to the nature of an organization and its product, this can be considered for exclusion.Where exclusions are made, claims of conformity to this International Standard are not acceptable unless these exclusions are limited to requirements within clause 7, and such exclusions do not affect the organization's ability, or responsibility, to provide product that meets customer and applicable regulatory requirements.ISO 9001:2000 - List of requirement clauses1. Scope2. Normative References3. Terms and Definitions4. Quality management system4.1 General requirements4.2 Documentation requirements

4.2.1 General 4.2.2 Quality manual 4.2.3 Control of documents 4.2.4 Control of records

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5. Management responsibilities5.1 Management commitment5.2 Customer focus5.3 Quality policy5.4 Planning (title only) 5.4.1 Quality objectives 5.4.2 Quality management system planning

5.5 Responsibility, authority and communication 5.5.1 Responsibility and authority 5.5.2 Management representative 5.5.3 Internal communication

5.6 Management review 5.6.1 General 5.6.2 Review input 5.6.3 Review output

6. Resource management 6.1 Provision of resources6.2 Human resources

6.2.1 General 6.2.2 Competence, awareness and training

6.3 Infrastructure6.4 Work environment7. Product realizations 7.1 Planning of product realization7.2 Customer-related processes 7.2.1 Determination of requirements related to the product 7.2.2 Review of requirements related to the product 7.2.3 Customer communication

7.3 Design and development 7.3.1 Design and development planning 7.3.2 Design and development inputs 7.3.3 Design and development outputs 7.3.4 Design and development review 7.3.5 Design and development verification 7.3.6 Design and development validation 7.3.7 Control of design and development changes

7.4 Purchasing 7.4.1 Purchasing process 7.4.2 Purchasing information 7.4.3 Verification of purchased product

7.5 Production and service provision 7.5.1 Control of production and service provision 7.5.2 Validation of processes for production and service provision 7.5.3 Identification and traceability 7.5.4 Customer property 7.5.5 Preservation of product

7.6 Control of monitoring and measuring devices8. Measurement, analysis and improvement 8.1 General8.2 Monitoring and measurement 8.2.1 Customer satisfaction

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8.2.2 Internal audit 8.2.3 Monitoring and measurement of processes 8.2.4 Monitoring and measurement of product

8.3 Control of nonconforming product 8.4 Analysis of data8.5 Improvement 8.5.1 Continual improvement 8.5.2 Corrective action 8.5.3 Preventive action

Product Realisation:Clause 7.1 Planning of Realisation processesProduct realisation is that sequence of processes and sub-processes required achieving the product, and the clause specifies the requirements to be met to achieve this.Clause 7.2 Customer-related processesThis is divided into 3 sub-clauses:7.2.1 Determination of requirements related to the product7.2.2 Review of requirements related to the product7.2.3 Customer communicationThis sub-clause is essentially a new requirement, the organisation being required to implement effective liaison with customers, with the aim of meeting customer requirements.Clause 7.3 Design and/or developmentThis is divided into 7 sub-clauses:7.3.1 Design and development planning7.3.2 Design and development inputs7.3.3 Design and development outputs7.3.4 Design and development review7.3.5 Design and development verification7.3.6 Design and development validation7.3.7 Control of design and development changesClause 7.4 PurchasingThis is divided into 3 sub-clauses:7.4.1 Purchasing process7.4.2 Purchasing information7.4.3 Verification of purchased productClause 7.5 Production and service operationsThis is divided into 4 sub-clauses:7.5.1 Control of production and services7.5.2 Validation of process for production and service provision7.5.3 Identification and traceability7.5.4 Customer property7.5.5 Preservation of productClause 7.6 Control of monitoring and measuring devicesNew requirements for software developed for tests have been added: “Software used for monitoring and measuring of specified requirements shall be validated prior to use.”

Clause Control Meaning7 Product Realisation7.1 Planning of Product Determine the quality objectives and requirements for your products,

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Realization Ensure that you adequately plan all of the processes and sub-processes needed to provide your products/services,

Plan the required inspection/testing activities,

Identify what records must be kept, to prove that the product has been properly produced

7.2 Customer Related Process

7.2.1 Determination of Requirements Related to the


You must find out what your Customer requires from you, with regard to the actual product or service that you supply and also any obligations that arise from it (such as legal requirements, warranties, and support, etc)

7.2.2 Review of Requirements Related to the


You must ensure that customer requirements are defined. If they are not defined in writing, you must identify how you confirm what it is that you thought the Customer wanted. You must ensure you have the resources to supply what has been ordered before you accept the order. You must define how changes in requirements are recorded how the information is circulated around the relevant sections of your organisation.

7.3 Design and Development

You must plan and control all aspects of your design/development work.

7.3.1 Planning You must ensure that you identify the various design / development processes and the related review stages. Also identify all relevant responsibilities

7.3.2 Inputs you must identify what the design inputs are (i.e. what information do you need in order to design or develop your product or service?) Your inputs should include any relevant functional requirements, standards, legal requirements (e.g. mandatory safety requirements, packaging disposal/recycling requirements, CE marking requirements, etc). Where it is relevant, you should

7.3.3 Output You must specify the design outputs (e.g. plans, drawings, schematics, etc) in such a way that they can be checked to ensure that they meet the design requirements. They must be suitable for use by the organisation that receives them. For example, your manufacturing department may require a Bill Of Materials, a "gold" sample, and a full set of engineering drawings, etc. Your design plans should state what is required, after you have discussed and agreed this with the recipient (whether an external Customer or an internal department).

7.3.4 Review You must review the progress of the design activities at appropriate stages. These can include theoretical calculation checks, Beta testing, etc. You must identify and record any problems and propose follow-up actions. Your plans should identify what these stages are and when they occur. You must keep records of these reviews.

7.3.5 Verification You must verify your designs to ensure that the design meets the design input requirements. Your plans should state how and when you plan to do this.

7.3.6 Validation You must ensure that the product or service works correctly in practice. In some cases, validation may include reviews of Customer feedback after release of the product. This may lead to subsequent design changes, or changes in future products.  Your plans should state how you plan to do this.

7.3.7 Changes You must ensure that any changes are reviewed and recorded. You must consider the effect that the changes may have on any sections of the design work already completed or under way.

7.4 Purchasing7.4.1 Purchasing process Documented procedures must be established and maintained in the company in order to

ensure that purchased product or service conforms to specified requirement. The type and extent of control applied to the supplier and the purchased product will be dependant upon the effect of the purchased product on subsequent product realisation or the final product.Evaluation and selection of vendors/suppliers.This must include procedures for evaluating, selecting, and deleting vendors/suppliers

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based on their ability to meet the requirement and for defining the type and degree of control exercised over them.

7.4.2 Purchasing information

Purchase orders (or letters of contract, etc) must clearly state what it is that you want (clever stuff, huh?). These must be reviewed for adequacy before they are sent to the Vendor

7.4.3 Verification of purchased product

This section is concerned with how you verify that the Vendor has supplied the correct items to you (in the 1994 version of the standard, this was usually conducted at "Receiving Inspection", or sometimes after the item was installed in another assembly ("In-process Inspection"). The second part of this section of the standard is relevant when you intend to inspect checks at your Vendor's premises before the goods are released (whether to you or directly to your Customer). In this case, you must specify when they will be checked ("within 10 days of notification by the Vendor", "following installation of sub-assembly 31", etc) and how they will be released ("not to be released until in receipt of our written release instruction", etc). This must be specified in the purchasing documents (this can be included on the purchase order that you send to the Vendor, or included in a "Terms & Conditions" document or "Contract of Supply", etc).

7.5 Production and service provision


7.5.1 Control of production and

service provision

This section is concerned with the process of producing your goods or services. You should consider how you control these processes, including: Information which specifies the characteristics of the product (so that inspections

and functional tests can be properly conducted) Provision of work instructions (or SOPs, Method Statements, etc). This can be by

written instructions, drawings, photographs, samples, etc. Provision of suitable equipment and appropriate maintenance of the equipment Availability and use of suitable monitoring and measuring devices Provision of procedures for release, delivery and (if applicable) post-delivery

activities (e.g. installation, commissioning, servicing, etc)7.5.2 Validation of

process of production and

service provision

This section is concerned with processes which produce items that cannot be tested directly (e.g. specialist welding operations, where the only method is to ensure that properly trained and qualified welders use highly-specified materials and equipment. The resulting welds cannot be internally inspected, so all of the correct conditions must be ensured). Other methods (e.g. for testing of crimped electrical connectors) might include destructive testing of first and last-off items or a sample destructive testing, etc. In this case, you must define how you: Review, approve and revalidate your production/service processes, Approve and revalidate equipment and personnel involved in these activities,You must also define: Which methods or procedures must be followed when producing or servicing

the product/service, What qualifications/experience are required for people involved in the

processes What records must be kept,

7.5.3 Identification and traceability

Where appropriate and to the extent necessary, you must ensure that materials and goods are identified, so as to prevent accidental mix-ups. Labeling is a typical method. Other methods include signs on the wall with a picture of the items. Metal rods can have colored paint put the end. However, if the differences are immediately obvious, there may be no need to label goods. Do not overdo it!Similarly, in some industries it may be necessary to be able to trace exactly which materials from which supplier were used in which goods. This may also extend to knowing which operators were involved. The aerospace industry is a good example of this sort of level of traceability. In the software industry, configuration management fulfils this requirement.

7.5.4 Customer property If you receive goods from your Customer which you then build into the items that you

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supply back to the Customer, then this clause of the standard applies to you. Also, if your activities involve items belonging to the Customer (e.g. if you service household electronic items, etc), you must take care of them, etc.In that case, you must record the goods upon receipt, and check that they are suitable for use. If any problems are discovered, or it is damaged or lost whilst under your control, you must report this back to the Customer.Customer data can be included under this heading (e.g. you provide an analytical service and you analyse the data, or you are an architect and you receive plans, property deeds, etc from the Customer. Also, if you receive confidential information from your Customer, etc). 

7.5.5 Preservation of product

You must have procedures in place which ensure that all materials, subassemblies and finished goods, etc are stored and handled so as to prevent them from damage or deterioration.However, this is not just limited to your stores or warehouse. It includes all areas where materials are handled, processed or moved. (The clause might have been more illuminating if had been entitled "Materials Handling"!)Also included in this section are the steps that you take to ensure that goods are not damaged following your final inspection. If it is your responsibility to deliver goods to your Client (that is, they do not arrange for the collection of the goods), then you must also choose you method of carriage appropriately. (If you use a carrier/courier, then they should be included in your supplier selection methods.

7.6 Control and monitoring of


You must identify what measurements need to be made, and what equipment must be used. Where measuring equipment is used to inspect or set up the goods that you manufacture, you must ensure that they are accurate enough for the purpose. You should have then regularly checked (calibrated). You must be able to prove that the equipment is calibrated, so keep records of it!If you find that the equipment is faulty, you must consider the effect of that fault on the measurements taken using the equipment since the last time you knew it was OK. This may mean that you have to recall goods (e.g. if a braking system on a motor vehicle could have been adversely affected), or it may mean that no action is required (e.g. if the inaccuracy is not enough to cause any adverse consequences). Either way, you must formally consider the matter and record the consideration and the decision. 

4. Discuss the importance of leadership and culture for effective TQM implementation in the organisations.

Culture:The key success factor in reaching business vision is to have in place a totally supportive Culture. Way of working and behaving is based on: Core values: Generally following core values are considered as important by most

organisations. Excellence: We will be best especially in satisfying all our customers’ needs and we will

empower our employees to continuously improve the process that serve them Innovation and Creativity: We are unconventional and unlimited in our thinking. We apply

creative mans to issues in order to discover possibilities for new solutions. We are prepared with the entrepreneurial spirit to take calculated risks and do things differently if it helps us to meet the needs of our customers.

Integrity: We are true to our word. All our actions are consistent with our word and we are always honest about our capabilities and intensions. We are reliable trustworthy and operate with integrity. We communicate openly, honestly and with responsibility. We respect each other and speak openly and honestly without fear of reprisal and regardless of our position. We listen carefully to what others have to say.

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Team work: We recognize that only by working in teams we will produce excellent results. Taking full advantage of the unique contribution can ensure success through teamwork

Leadership: Uncompromising about their value systems. Care deeply about people Demand that each person be innovative contributor. Tough on values, tender in support of the people Speak constantly of vision. Obsessive attention to detail.

Leadership is a key element in successful implementation of large scale change: The leader shows the need and sets the vision, defining the basic purpose, goals, and parameters or requirements of TQM. The leader needs to take a long term perspective, and must be able to motivate others to stick with the process during early stages when resistance and obstacles may seem insurmountable. The preferred leadership style would be a participative one, so that staff may be involved in the design of the specific system elements. This may seem in contradiction to the earlier stated preference for an "intervention" approach as opposed to traditional participative decision making. In the former, the leader is, in fact directive regarding the big picture and overall goals, i.e., establishing PDM. Once that strategic direction has been determined, a participative style may be used on implementation details. Prior to this decision, of course, the manger should study TQM, talk to others who have used it, and perhaps attend a preliminary training session. This is important in order for the manager to accurately assess the fit between TQM and her/his style. This will be necessary in establishing an organizational culture which is compatible with TQM, nurturing and reinforcing continuous quality improvement.In designing a comprehensive change process, the leader must acknowledge the existing organizational culture (norms and values, managers' leadership philosophies and styles at all levels) to ensure a good fit. TQM also needs to be congruent with or aligned with other organizational processes, including reward systems, financial & information systems, and training systems. Implementing TQM essentially involves organizational transformation: beginning to operate in new ways, developing a new culture. This also includes redesigning other systems, as has been described above. Such change, while difficult, is possible in the public sector, in spite of Swiss's (1992) reservations (Packard and Reid, 1990).

5. How should TQM be aligned with the business strategy? Discuss.

Business Strategy:It refers to the managerial game plan for single business. Business strategy concerns the actions and the approaches crafted by management to produce successful performance in one specific line of business. Business strategy is powerful if it produces sizable and sustainable competitive advantage. It is weak if it results in competitive disadvantage. Functional strategy concerns the game plan for running a major functional activity or process within business. Effective strategy making begins with a vision of where the organisational needs to head.

Business Vision:

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Business vision involves coming up with mission statement that defines what business the company is presently in and conveys the essence of “Who we are?, What we do?, and where we are now?”

We shall be recognised as the best by every single customer as being the best in sustained total customer satisfaction, in pursuit of our business.

Business Objective:

Customer satisfaction : To exceed customers’ satisfaction, to delight our customers. Employee Satisfaction : To Enhance motivation and personal growth of all employees Market Share : To beat competition and increase the market share. Profit and Return on assets : To increase profits and provide shareholders with a satisfactory

return on their investments

TQM:TQM is a philosophy of managing a set of business practices that emphasizes continuous improvement in all phases of operations, 100 percent accuracy in performing activities, involvement and empowerment of employees at all levels, team based work design, benchmarking and fully satisfying customer expectations. Quality improvement processes have now become a globally pervasive part of the fabric of implementing strategies keyed to defect free manufacture, superior product quality, superior customer service and total customer satisfaction. TQM entails creating a total quality culture bent on continuously improving the performance of every task and value chain activity.

Aligning business processes with business objectives In any TQM philosophy aligning business processes to fulfill business objectives is the major exercise. Functions/Activities are performed to achieve business objectives. Departmental objectives are derived from business objectives. Activities are performed in the department to achieve departmental objectives. For each activity there is immediate internal or external customer and supplier.

It is necessary for every process owner to think about “My Customer” and “What I provide to them” and about “My Suppliers” and “What they provide to me”. It is necessary to identify major business processes in the organisation and measurement of process performance. Following are some commonly identified as major business processes in the industry:

Major business processes identified:

Customer Service and Supply chain Forecasting customer orders Scheduling parts on our suppliers Planning our factory production Making product in our factory and delivering to distribution centers Customer ordering, delivering and invoicing

New product Interviewing end users and understanding their needs

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New product planning New product design and manufacturing New product marketing plans

Sales marketing Market research Stimulation of end users interest Excellent marketing execution with our customers Developing customer partnerships Acquiring new customers

People Hiring, appraising, training and development Communicating Reward and recognition Developing organisation to meet customer’s needs

ConclusionTQM plays a vital role in successfully implementing business strategy. When TQM is not a part of a wider effort to improve strategy execution and business performance they deteriorate into strategy-blind efforts to manage better.

6. What are the various building blocks of TQM?The building blocks of TQM: processes, people, management systems and performanceMeasurement:Everything we do is a Process, which is the transformation of a set of inputs, which can include action, methods and operations, into the desired outputs, which satisfy the customers’ needs and expectations. In each area or function within an organisation there will be many processes taking place, and each can be analysed by an examination of the inputs and outputs to determine the action necessary to improve quality. In every organisation there are some very large processes, which are groups of smaller processes, called key or core business processes. These must be carried out well if an organisation is to achieve its mission and objectives. The section on Processes discusses processes and how to improve them, and Implementation covers how to prioritise and select the right process for improvement.

Total Quality Management:Total: Encompasses all functions, all activities, all employees, all subcontractors/Vendors/

Suppliers, complete all the time.Quality: Measure of customer satisfaction and delight with the product and service.Management: Leadership, Organisational structure, Working systems, Procedures and Processes

to make it happen and people.

Building Blocks of TQM:

Strategic Quality Planning


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Quality in Daily Work Continuous Improvement

Strategic Quality planning:The purpose of Strategic Quality Planning is to develop and achieve the organization's vision in a manner that is consistent with its mission and values.  SQP involves every member of the organization in developing a common understanding of:

The organization's customers and their needs and expectations

How customer's expectations is measured

How customer's needs are met through purposeful activity or systems

the values, mission, and vision or desired future state of theorganization

The goals of the organization

How to link plans to systems for organization-wide design,improvement, alignment, and implementation activities

How to execute annual plans

How to review the process and results of annual plans and how to act upon the knowledge gained


People are a fundamental building block of any TQM organisation. The only point at which true responsibility for quality can lie is with the people actually doing the job or carrying out the process. The complexity of most processes in an organisation places them beyond the control of any one individual, so the only efficient way to tackle process improvement or re-design is through teamwork.  

When properly managed and developed, teamwork improves processes and produces results quickly and economically through the free exchange of ideas, information, knowledge and data. It is an essential component of a total quality organisation, building trust, improving communication and developing a culture of interdependence, rather than one of independence.  

The only point at which true responsibility for performance and quality can lie is with the People who actually do the job or carry out the process, each of which has one or several suppliers and customers. An efficient and effective way to tackle process or quality improvement is through teamwork. However, people will not engage in improvement activities without commitment and recognition from the organisation’s leaders, a climate for improvement and a strategy that is implemented thoughtfully and effectively. The section on People expands on these issues, covering roles within teams, team selection and development and models for successful teamwork.

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Quality in Daily work:Because of the time we have invested in awareness and skill training, many of the quality tools and concepts have become integrated into the way we do business, either transforming or reinforcing staff behaviors and attitudes.

Below are a few examples of quality tools and principles that we now see incorporated into daily activities:-

Self-Directed Work Teams: The development of Self-Directed Work Teams is growing expression of teamwork, flattening the organization, and empowerment principles. Team members will tell us that is a lot of work, but that the end result produces efficiency and better service for the customer.

Customers as Partners: In a quality environment you begin to see your customers as partners. We have instituted several formal partnership programs with Schools and Colleges to plan for the effective use of information technology resources and deliver those services. As well, we strive for a sense of partnering with customers in developing and delivering our products and services.

General Meeting Effectiveness: One of the most significant changes we have noticed from the application of quality principles and tools is in the increased effectiveness of our meetings.

Continuous Improvement:

The Continuous Improvement component allows organizations to examine their current business environment relative to their diversity strategy and make changes based on current challenges in their workforce, workplace and marketplace. It extends current diversity learning through continued reinforcement.

Complacency is to be avoided, as it is a major hurdle in improvements. Widely supported incremental improvement programs in every area of the organisation are a sure way of achieving this objective. It is believed that that getting 1% improvement in all areas is better for the organisation than 100% improvement in one area. Therefore small projects initiated by the employees themselves – taken up in all areas give a boost and strength to this movement and also help in developing potential of the people.

Continuous Improvement Objectives: Identify New Challenges/Opportunities Review Strategic Plan Follow-up Assessment

7. Explain Juran on Quality in detail? Compare it with Deming’s principles of Quality.His TQM message is built around following 10 steps: Create awareness of the need and opportunity for quality improvement. Set goals for continuous improvement. Build an organisation to achieve goals by establishing a quality council, identifying and

prioritizing the problems, selecting a project, appointing teams to take responsibility of actions and choosing facilitators.

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Give everyone training. Carry out projects to solve problems. Report progress. Show recognition Communicate results Keep a record of success. Incorporate the annual improvements in the company’s regular systems and processes and

thereby maintain momentum.

Concept of Juran Juran has felt that managing for quality requires the same attention that other functions

obtain. Juran sees the trilogy as the key to success. Top management can follow this sequence just as

they would use one for financial budgeting, cost control, and profit improvement. For any project, quality planning is used to create the process that will enable one to meet the

desired goals. Quality control is used to monitor and adjust the proc

Juran defines Quality as “Fitness for use or purpose”. Instead of conformance to specifications in Juran’s

Quality Trilogy: Juran’s Quality Trilogy consists of quality planning, quality control, and quality improvement.Quality Planning provides a system that is capable of meeting quality standards. Quality Control is used to determine when corrective action is required. Quality Improvement seeks better ways of doing things.

Quality Planning

Identify who are the customers. Determine the needs of those customers. Translate those needs into our language. Develop a product that can respond to those needs.

Optimise the product features so as to meet our needs and customer needs.

Quality Improvement

Develop a process which is able to produce the product.

Optimise the process.

Quality Control

Prove that the process can produce the product under operating conditions with minimal inspection.

Transfer the process to Operations.

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Deming’s Principles on Quality:Deming’s approach is revolutionary--not evolutionary. Throw out your old system of management--implement the 14 points. Not just some of them, all of them. And the points go far beyond what is considered to be quality control. They affect all areas of management.

Deming’s 14 Points:1. Create constancy of purpose toward improvement of product and service, with the aim to

become competitive and to stay in business, and to provide jobs.2. Adopt the new philosophy. We are in a new economic age. Western management must awaken

to the challenge, must learn the irresponsibility’s, and take on leadership for change.3. Cease dependence on inspection to achieve quality. Eliminate the need for inspection on a

mass basis by building quality into the product in the first place.4. End the practice of awarding business on the basis of price tag. Instead, minimize total cost.

Move toward a single supplier for any one item, on a long-term relationship of loyalty and trust.

5. Improve constantly and forever the system of production and service, to improve quality and productivity, and constantly decrease costs.

6. Institute training on the job.7. Institute leadership (see Point 12). The aim of supervision should be to help people and

machines and gadgets to do a better job. Supervision of management is in need of overhaul, as well as supervision of production workers.

8. Drive out fear, so everyone may work effectively for the company,9. Break down barriers between departments. People in research, design, sales, and production

must work as a team, to foresee problems of production and in use that may be encountered.10. Eliminate slogans, exhortations, and targets of the work force asking for zero defects and new

levels of productivity. Such exhortations only create adversarial relationships, as the bulk of the causes of low quality and low productivity belong to the system and thus fie beyond the power of the workforce.

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11. a. Eliminate work standards (quotas) on the factory floor. Substitute leadership.b. Eliminate management by objective. Eliminate management by numbers, numerical goals. Substitute leadership.

12. a. Remove barriers that rob the hourly worker of his right to pride of workmanship. The responsibility of supervisors must change from numbers to quality.b. Remove barriers that rob people in management and in engineering of their right to pride of workmanship. This means abolishment of the annual or merit rating and of management by objective.

13. Institute a vigorous program of education and self-improvement.14. Put everybody in the company to work to accomplish the transformation.

According to Deming’s Theory, A production system in composed of many interacting sub systems. Management’s job is to set the purpose for the system and to optimize the system. Variation is an inherent part of any system. Common causes of variation account for 80-90% of the total variation; assignable causes account for the rest. Only management can address common causes of variation. Knowledge is not possible without theory. Experience alone does not establish a theory. Copying an example of someone else’s success without understanding it with theory can lead to disaster.

By practice of using only visible and measurable figures to judge performance, company creates another roadblock to implement Deming’s approach. He acknowledges the usefulness of figures, but states that focusing on the visible figures alone is quick route to failure. The end of quarter or year panic leads the management to manipulate everything to get the right numbers. Other important things like quality, research, education, are pushed aside by the numbers game.

It can be seen from the Deming’s theory that he has thought out the matter in great depth and shows practical wisdom which can be used by the companies worldwide.

8. Explain Malcom Baldrige National Quality award and European Quality award.

Malcolm Baldrige National Quality Award:The Malcolm Baldrige National Quality Award is one of three global quality awards coveted by companies all over the world. While the award is largely US-centric, the basic parameters for selection of companies have been adapted by several organisations across the globe to evaluate quality.

The award has been instituted in the memory of Malcolm Baldrige, who served as the US secretary of commerce for seven years in the Ronald Reagan administration. Baldrige's award-winning managerial excellence contributed to long-term improvement in the US economy, and efficiency and effectiveness in the government. Prior to entering government service, he served as chairman and chief executive officer of Scovill Inc, where he is credited with leading its transformation from a financially troubled brass mill to a highly diversified manufacturer of consumer, housing and industrial goods.

The award is traditionally presented by the president of the United States at a special ceremony in Washington, D.C., to companies in five categories:

Manufacturing companies Service companies Small business Health care Organisations Educational institutions.

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The evaluation criteria:The award is based on an evaluation of companies on various parameters, for which a scoring system has been devised. These are:

1. Leadership (125 points):The leadership category examines how an organisation’s senior leaders address values and performance expectations, as well as a focus on customers and other stakeholders, empowerment, innovation, learning, and organisational directions. Also examined is how the organisation addresses its responsibilities to the public and supports its key communities.

2. Strategic planning (85 points):The strategic planning category examines the organisation’s strategy development process, including how it develops strategic objectives, action plans, and related human resource plans. Also examined are how plans are deployed and how performance is tracked.

3. Customer and market focus (85 points):The customer and market focus category examines how the organisation determines requirements, expectations, and preferences of customers and markets. Also examined is how it builds relationships with customers and determines their satisfaction.

4. Information and analysis (85 points):The information and analysis category examines the organization’s performance measurement system and how it analyses performance data and information.

5. Human resources (85 points):The human resource focus category examines how the organization enables employees to develop and utilise their full potential, aligned with the organisation’s objectives. Also examined are the organisation’s efforts to build and maintain a work environment and an employee support climate conducive to performance excellence, full participation, and personal and organizational growth.

6. Process management (85 points):The process management category examines the key aspects of the organisation’s process management, including customer-focused design, product and service delivery, support, and supplier and partnering processes involving all work units.

7. Business results (450 points):The business results category examines the organisation’s performance and improvement in key business areas -- customer satisfaction, product and service performance, financial and marketplace performance, human resource results, supplier and partner results, and operational performance. Also examined are performance levels relative to competitors.

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Malcom Baldrige Award Criteria

European Quality Award:

The European Quality Award is Europe's most prestigious Award for organisational Excellence and is the top level of the EFQM Levels of Excellence. 2004 marks the thirteenth running of the European Quality Award. It is open to every high performing organisation in Europe and focuses on recognizing Excellence and providing detailed, independent feedback to all Applicants to help them on their continuing journey to Excellence.

Award Assessors are all practicing senior managers or, in a few cases, academics who bring their years of experience and judgement to provide valuable feedback and the evidence on which the different levels of recognition are based.

The European Quality Award sits at the pinnacle of dozens of regional and national quality awards and Applicants have often been successful in these before applying for European recognition.

The award is presented annually to the organisations judged to be the most successful exponent of TQM in Europe. The winners are chosen from four categories:

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Customer and Market focused Strategy and action plans

4Information and Analysis


7Business Results

2Strategic Planning




and Market Focus


Resource Focus


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1. Whole companies2. Operational units of companies3. Small and medium sized companies4. Public sector organisations.

There are four levels of recognition in each category available to Applicants for the European Quality Award. They are shown below in descending order.

Award WinnerThe European Quality Award is presented annually to the organisation judged to be the best in each of the Award categories providing also they meet all the requirements set annually by the Award jurors.

Award winners are exceptional organisations - they are European or global role models in their approaches and the results they achieve. As these are exceptional organisations, the independent jury does not always identify an Award winner in each category, further increasing the prestige for those who reach this level.

Every Award winner will be entitled to retain the trophy for a full year and at the end of this time receive a smaller replica. They are also entitled to use the European Quality Award winner logo on letterheads, business cards, advertisements, etc.

Prize WinnersPrizes are presented annually to organisations that excel in one or more of the eight fundamental concepts of Excellence. The new definition of Prizes based on the fundamental concepts of the EFQM Excellence Model was introduced for five of them for the fist time in 2003. Now, in 2004, they are extending the recognition at Prize winner level to cover all of the fundamental concepts in each category in the following areas:

Leadership and constancy of purpose Customer focus Corporate social responsibility People development and involvement Results orientation Management by processes and facts Continuous learning, innovation and improvement Partnership development

These Prizes will allow us to identify and celebrate more role models and should be readily understood by managers in general and the press. It will be possible for an organisation to win more than one Prize, and for there to be more than one winner of a Prize where the jury decide there is more than one role model organisation.

FinalistsEach year, several Finalists may be declared in each category. Finalists are organisations that demonstrate a high degree of Excellence in the management of quality as their fundamental process for continuous improvement. Finalists receive a framed certificate and are also entitled to use the European Quality Award Finalist logo on letterheads, business cards, advertisements etc.

Recognised for ExcellenceAll Applicants for the Award are asked if they are interested in being recognised at this level which is the middle level of EFQM Levels of Excellence. Those who achieve a score in excess of

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400 points after site visit are recognised for Excellence. This indicates that the organisation is well managed and aspires to achieve role model status.

The European Quality award is used as a self assessment tool. It has nine elements that have been identified as the key components of business excellence:

9. Explain the role of environmental management system in TQM

EnvironmentEnvironment is defined as 'surroundings in which an Organisation operates including air, water, land, natural resources, flora, fauna, humans and their interrelation. Surroundings in this context extend from within individual households to organisations and then to the entire global system. Keeping the environment fit for living is the duty of every citizen and Organisation, because a clean environment enhances the 'quality of life' of all species on the earth. There is an increasing awareness by individuals and organisations to achieve and demonstrate sound environmental performance by controlling the impact of their activities on the environment.Causes of environmental degradationThere are many causes that have contributed for the degradation in the environment. Some of them are population increase, ozone depletion, global warming, air pollution, water pollution and ecosystem disturbance.Population increaseThe World population is increasing rapidly. Current population is around 6 billion and will increase to 12 to 15 billion by year 2100. There will be great demands on resources such as space, water and food. There will be serious pollution problems as a result of population growth.Ozone depletionCFC's and other gases are responsible for attacking and reducing the thin layer of high-level of ozone 15 km up in the troposphere. Ozone, the three atom form of oxygen is destroyed by the

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Leadership 10%

Business Results



People Management


Policy & Strategy


Customer Satisfaction


People Satisfaction


Impact on Society



Enablers 50% Results 50%


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CFC's and other similar chemicals which release chlorine when exposed to sun light. The chlorine then attacks the ozone converting it into oxygen. During turbulence at this height the ozone thins out, creating a hole which allows ultra violet light from the sun to the surface of the earth. Ultra violet radiation has widespread effects on human health, crops, photo synthesis and ecosystems.Global WarmingThe mean temperature on the earth over the past 140 years has gone up by about 0.5 degrees Celsius. The green house gases that contribute to the global warming are as follows:Air PollutionAir pollution is caused by several factors. Some of the major causes of air pollution are - smog, emissions from vehicle exhausts, release of hydrocarbons from industries. Nitrogen dioxide, Carbon monoxide, solvents and complex hydrocarbons cause air pollution. Many different concerns manifest themselves as 'acid rain'. Acid rain, particularly caused by sulfur-dioxide causes extensive damage to ecosystems. Low level ozone generation from the release of hydrocarbons from industry and vehicles is a problem, particularly during summer when sunlight creates a photochemical smog. Air pollution is cause for many disorders like asthma, bronchitis, eye infections and headaches.Water PollutionWater pollution is caused by nitrates from agricultural operations, discharges from factories either directly or through water treatment plants, sewage discharges, spillage of chemicals, run-off from mining and quarrying operations and ground water contamination due to landfill sites. Classification scheme for river and canal water is as follows: Ecosystem DegradationIn pursuit of industrialisation, large scale destruction of geographical regions is causing massive degradation of the ecosystem. Inadequate planning and poor management of the resources are resulting in destruction of rain forests and upland regions. Exploitation of forests for wood (as industrial raw material, fuel and construction material), mineral extraction and construction of dams for irrigation and power generation are creating imbalance in the ecosystem.Environmental concernsManagements of Business organisations are under constant pressure from various groups like Legislation, Customers, Markets, Insurance, Public and Media to achieve and demonstrate sound environmental performance.LegislationOrganisations need to adhere to the statutory and regulatory requirements applicable to the country to be in business. There is no equal pressure in all the countries. In developed and advanced countries, the legislation for protection of environment has become a high priority. Environmental regulatory bodies, like the Pollution Control Board play, a significant role in the implementation and monitoring of the legislative requirements.CustomersIndividual customers and corporate customers would like to purchase products from manufacturers who are committed to environmental protection. Eco-Label award or certification to ISO 14000 EMS standards provides confidence to the customers that the suppliers are committed to environmental protection and improvement.Market TrendsEnvironmental issues have influenced the consumption patterns of many products. Manufacturers need to study the market trends to prepare the business plans. Some examples of this changing trend are• Usage pattern of pesticides, refrigerants and solvents• Reduction in the use of solvents due to water based alternatives• Alternatives to wood being developed• Usage of sodium hexafluoride as insulating gas under threat

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InsuranceInsurance companies are creating pressure on the industry to institute an EMS by providing tailored insurance policies than general policies. Pollution liability is restricted to sudden and accidental and no cover for gradual pollution incidents.Sudden and accidental-Bhopal, Chernobyl etc.,Gradual - Disposal of toxic waste by burial - Leakage of pipes, tanks or pits - Discharge into streams or rivers - Release of fumes into atmospherePublic and MediaPublic consisting of local residents, organisation's workforce, investors and insurers, customers and environmental interest groups like Greenpeace and Friends of the Earth are creating awareness on environmental issues. Wide usage of the Internet and government regulations will lead organisations to provide information on the environmental performance.

Environmental Management Systems - NeedOrganisations of all kinds are increasingly concerned to achieve and demonstrate sound environmental performance by controlling the impact of their activities, products and services on the environment taking into consideration their environmental policy and objectives. The Environmental Management System of an organisation is expected to meet the following needs:Meet the regulatory, and legislative requirements1.Improve the control of the environmental impact2.Provide confidence to the customers that the products and services are manufactured with the aim of reducing the negative impact on the environment3.Suitably accommodate changing market trends and gain competitive edge4.Reduce the costs associated with environmental liabilities and Insurance Gain public and media support

Environmental Management Systems - ScopeThe Environmental Management System enables an Organisation to formulate policy and objectives taking into consideration legislative requirements and significant environmental impacts and specifies the environmental performance criteria. The scope of the Environmental Management System of an organisation consists of :* Implement. Maintain and improve EMS.* Conformance to the stated policies and objectives.* Demonstrate conformance to the EMS through certification.Environment Management System of an organisation shall consider the following issues:* Improvement to the Quality of life* Benefits to society* Commitment to the future generations* Minimizations of environment risk* Prevention of pollution* Environment care and continuous improvements* Save resources

Environmental Management Systems - BenefitsEnvironmental Management System benefits the organisation as well as the society. Significant benefits of the EMS are

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* Assurance of policy implementation.- Forces organisations to link policy to objectives and targets.- Policy linked to operations and activities.- Management involvement.- Compliance with the regulatory requirements.- Continuous environmental improvement.- Spot and correct potential problems.* Technology tie-ups.- Multi-national companies (MNCs) would like to provide technology to companies which have implemented EMS.* Benefits to stakeholders-employees, customers, society, government and interested parties.* Reduction in costs.- Reduction in expenditure on raw materials.- Savings from waste reduction or elimination.- Decrease in costs of waste disposal.- Reduction of insurance costs and elimination of penalties.

Key elements of Environment Management Systems:

Environmental policy — Develop a statement of your plant’s commitment to the environment. Use this policy as a framework for planning and action. The policy is a direct reflection of the fundamental values of the organization.Environmental aspects — Identify environmental attributes of your products, activities and services. Determine those that could have significant impacts on the environment. Legal and other requirements — Identify and ensure access to relevant laws and regulations, as well as other requirements to which your plant adheres.Objectives and targets — Establish environmental goals for your plant, in line with your policy, environmental impacts, the views of interested parties and other factors.Environmental management program — Plan actions necessary to achieve your objectives and targets.

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Structure and responsibility — Establish roles and responsibilities for environmental management and provide appropriate resources.Training, awareness and competence — Ensure that your plant’s employees are trained and capable of carrying out their environmental responsibilities.Communication — Establish processes for internal and external communications on environmental management issues.EMS documentation — Maintain information on your plant’s EMS and related documents. Document control — Ensure effective management of procedures and other system documents. Operational control — Identify, plan and manage your plant’s operations and activities in line with your plant’s policy, objectives and targets.Emergency preparedness and response — Identify potential emergencies and develop procedures for preventing and responding to them.Monitoring and measurement — Monitor key activities and track performance. Conduct periodic assessments of compliance with legal requirements.Nonconformance and corrective and preventive action — Identify and correct problems and prevent their recurrence.Records — Maintain and manage records of EMS performance.EMS audit — Periodically verify that your plant’s EMS is operating as intended.Management review — Periodically review your plant’s EMS with an eye to continual improvement.

Conclusion:Any TQM model expects that organisation is socially responsible, fulfilling the environment management systems as per ISO 14001 any organisation demonstrate their concern for the environment.

10. Explain the role of HR promoting TQM in an organisation.

TQM is primarily an organizational strategy considered as a change programme to achieve excellence and therefore HR has an important role to play in designing the interventions to prepare the people and the organizations for the desired change.

The role of the HR Department in improving quality can be considerable. Broadly, it can: Assist in the formulation of the firm's strategic direction and needs. Identify the human resource philosophies or culture consistent with the business needs. Develop and implement policies and activities consistent with the culture. Ensure that the quality improvement process is consistent with the other human resource


The HR department can play a significant role in the change process by establishing a specific programme that is responsible for dealing with the change. This programme can involve :

Establishing a senior HR council and executive operating committee Naming a major initiative that rallies all employees to the change Developing a leadership programme that ensures that the change clearly includes the top

management [ a senior management development programme].

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Additionally, within the HR department there can be further division of roles and responsibilities. This often involves clarifying the relationship between the corporate-level HR department and the business unit - level departments. Taking a proactive stance, the corporate-level department can13:

Assist senior managers in formulating change Become a model of change Develop and guide divisional human resource departments Change organisational structure Serve as a clearinghouse Serve as trainer for other HR staff Do benchmark analysis Develop HRIS [Human Resource Information System] capacity Audit competencies

Development of Total Quality People:The first pillar of TQM is internal customer satisfaction. People involved in each process have to treat those next in the process as their customer. In addition to the external customer, every activity in the factory has an internal customer. The service to the internal customer is the one which will help gear up the organization to deliver finally the required service to the customer. For example if Marketing dept. deals with external customer, its commitments are to bebacked up by other departments for whom the marketing dept. itself becomes a customer. Therefore, all the departments and the people are to be oriented towards achieving total quality and the attitude of " Help us to help you better " must be developed on the philosophy of internal customers. Here lies the importance of HR in developing total quality people i.e. people with positive attitude, values in consonance with organizational mission and change the mindset so that the foundation becomes very strong. The HR effort should be to bring in/foster real spirit of TQM i.e. spirit of reciprocity in interactions and not merely the mechanics of it. The HR initiative in TQM activity should be oriented to demonstrate theefficacy of Win-Win relationships as contrasted to Win-Lose or Lose-Lose relationships and thereby enabling effective spirit of team work.

TrainingHR has also to undertake intensive training of personnel in understanding the application of TQM methods & its tools. In Japan, this part of applying TQM methods & tools are very much wide spread & people at all levels starting from top to bottom are very much conversant with this and apply in all spheres of their activity. HR initiatives in this context have toaddress in training of personnel in becoming "data minded than opinion minded". The mindset of " What is wrong" than " Who is wrong" to be generated & built up. Though it is a formidable task, HR has to trigger this thinking in an organization to realise thought revolution of TQM dimension.

Employee Involvement:Further, HR has to initiate employee involvement in TQM activity. Ultimately, quality is physically produced by the operator on the shop floor. It is therefore very important that he understands the quality requirements of his job. This is possible provided his involvement in the job is very high and he is a very committed and empowered worker. It is in this context that Japanese have introduced Quality Circles which have generated high level of commitment of workers and finally helped Japan to become as world leader in the business. Quality circles are based on the fundamental principles of collaboration,involvement & empowerment. HR has to facilitate the culture of team work either in the form of

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Quality Circles, Quality Teams, Task force, CFT, Suggestion schemes or any such others innovative employee involvement schemes for TQM activity.Education and communication:Companies place great emphasis on this, through a variety of vehicles – videos, briefing, magazines, newsletters, notice – boards, story boards and so on, so as to promulgate and reinforce the quality message. However its inadequate for senior management to express their commitment solely through communicating vision and mission statements.

Recruitment and Selection:TQM has an effect on selection procedures. Some companies have sophisticated recruitment and selection techniques, including psychometric and aptitude tests and assessment centers to identify team workers or problem solvers appropriate to quality culture.

Appraisal:Performance appraisal is seen playing an important role as a tool to communicate to managers whether quality standards are being met, given the importance of the customer evaluation of managerial performance in the overall appraisal.

Communication and recognition: Placing so much emphasis on training requires that the company communicate regularly with employees about the developmental opportunities being offered. These are more than just communication vehicles. They serve as a means of worker recognition, which the company takes seriously. Other ways of recognizing employees include:

Recognition Day—An annual celebration at each location in which individual employees and teams are recognized publicly for their accomplishments

Incentive Recognition Awards—An annual monetary award for excellence above and beyond normal job duties

Seniority Recognition Program—A program in which every employee receives a card and small gift on the anniversary of his or her date of hire.

Labor relations: One of the distinctive features of human resources program is that the program makes no distinctions between exempt and nonexempt employees. The organization surveys union members about their opinions right along with salaried employees. Union members participate in the employee-suggestion program, and they can attend the Front-Line Leadership Training regardless of whether or not they have any supervisory responsibility.

Job design:Employees are more likely to show commitment when jobs are meaningful and involve significant responsibility and where employees are able to get direct feedback on their performance. TQM emphasis on flexibility and teamwork may also require a move away from detailed fixed job descriptions.

Finally HR has to create TQM mindset by focusing following three main orientations:-1) The customer orientation2) The process orientation3) The people orientation.

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There are five phases of HR intervention for TQM:

Formulation: Hr professional could play a role in shaping TQM initiatives at the formulation stage. They may be able to play a creative role in terms of philosophy behind TQM and its degree of interaction with current organisational practice and ethics.Example:1. Preparing and synthesizing reports from other organisations that have experience of TQM2. Assisting with choices about TQM approaches.3. Designing and delivering senior management development courses that create the right

climate for TQM.

Implementation Stage:At this stage, HR professionals can play a facilitating role in ensuring the TQM is introduced in most appropriate way. The following activities may be undertaken:1. Training of middle managers and supervisors in how to develop TQM process within staff2. Training facilitators mentors and team members in interpersonal skills and how to manage

TQM3. Coaching managers on behaviour 4. Designing communication events to publicize TQM.

Maintenance Stage:Having shaped and implemented the TQM initiative, HR personal function can play an effective part in attempting to maintain and reinforce its position within the organisation. Interventions in the third area are designed to ensure TQM continue to attract a high profile and does not lose impetus. Contribution can be in following areas:1. Introducing or upgrading the TQM component with induction courses.2. Ensuring that training in tools, techniques, systems and processes continues to be provided

within the organisation.3. assisting quality improvement teams4. Ensuring the methods of rewarding success are established.

Review Stage:HR may also be able to make contribution to TQM at the review level either on regular basis or part of ongoing procedure for evaluating progress. Such intervention could include:1. Contributing to leading the preparation of annual TQM reports.2. Assuring effectiveness of TQM infrastructure3. Preparing and administrating employee attitude surveys on TQM

Application Stage:Finally and to some extent in conjunction with each of these stages, HR function can apply to TQM to review their own activities along the lines of the undertaken by the internal contractors as analysed earlier. The precise list of practices depends on organisation and function involved. Some of them may be:1. Preparing offer and contract letters within a specified time.2. Advising staff on their terms and condition of employment3. Evaluating Training provision on annual basis.4. Continual review of its activities using the people related criteria in EFQM model and


Gayathri Shankarram Registration Number: 200308104


Page 36: TQM & HR


Gayathri Shankarram Registration Number: 200308104