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Total Quality Management Definitions

Quality is physical or non-physical characteristics that constitutes basic nature of a thing or is one of its
distinguishing features.
Crosby has defined Quality as “Quality is the conformance to requirements or specifications”
A more general definition of quality is given by Juran as- “Quality is fitness for use.”
Quality is degree of goodness of a product or service as perceived by the customer. It is the way business
organizations perform their business activities that focuses on two things:
i) Meeting the customers’ needs and expectations
ii) Doing it in an efficient manner
Quality is somewhat intangible aspect which is based on perception. It can be quantified as follows:
Q= P / E Q= Quality P=Performance E=Expectations

Six Basic concepts of TQM:

TQM requires six basic concepts which are
1. A committed and involved top management to provide long-term, top to bottom organizational
support.
2. An unwavering focus on the customer, both internally (employees) and externally (buyers).
3. Effective involvement and utilization of the entire work force.
4. Continuous improvement of the business and production processes.
5. Treating suppliers as partners called supplier partnering.
6. Establish performance measures for the processes.

1. A committed and involved top management to provide long-term, top to bottom organizational
support.
The leaders of an organization play a vital role in the development of quality culture in the organization. The
quality culture of an organization is the reflection of the traits of the top management. Top management must
participate in the quality program. A quality council must be established in the organization to develop a
clear vision, set long term goals and direct the program..
2. Focus on internal and external customers:
Managers must listen to the suggestions and recommendations made by the employees to improve
quality. This aspect of listening to the voice of customers leads to the emphasis of design quality and defect
prevention. Every function in an organization should be done right the first time and every time because
customer satisfaction is the most important consideration in TQM.
3. Effective involvement of the entire work force:
TQM is everyone’s responsibility in an organization. All workers in an organization must be oriented
towards TQM and all personnel must be trained in TQM, statistical process control and other
appropriate quality improvement skills so that they can effectively & efficiently participate in TQM
as a team.
4. Continuous improvement of the business and production process:
Continuous improvement refers to constant refinement and improvement of products, services
and organizational systems to yield improved value to consumers. A disciplined improvement that
can hold the gains made through quality orientation is necessary.

Servqual Model
INTRODUCTION
• Service quality is an approach to manage business processes in order to ensure full satisfaction of the
customers & quality in service provided. It works as an pioneer of customer satisfaction.
• If expectations are greater than performance, then perceived quality is less than satisfactory and
hence customer dissatisfaction occurs.
• SERVQUAL is a service quality framework, developed in the 80’s by Zeithaml, Parasuraman &
Berry, aiming at measuring the scale of Quality in the service sectors.
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• SERVQUAL was originally measured on 10 aspects of service quality: reliability, responsiveness,

competence, access, courtesy, communication, credibility, security, understanding the customer, and
tangibles, to measure the gap between customer expectations and experience.

SERVQUAL as a Measuring Tool

• In 1988 the 10 components were collapsed into five dimensions (RATER). Reliability, tangibles and
responsiveness remained distinct, but the remaining seven components collapsed into two aggregate
dimensions, assurance and empathy.
• The instrument is administered twice in different forms, first to measure expectations and second to
measure perceptions.
• Parasuraman et al. developed a 22-scale instrument with which to measure customers’ expectations
and perceptions (E and P) of the five RATER dimensions. Four or five numbered items are used to
measure each dimension.
The five SERVQUAL dimensions are: R-A-T-E-R
1. RESPONSIVENESS - Willingness to help customers and provide prompt service
2. ASSURANCE - Knowledge and courtesy of employees and their ability to convey trust and confidence
3. TANGIBLES - Appearance of physical facilities, equipment, personnel, and communication materials
4. EMPATHY - Caring, individualized attention the firm provides its customers
5. RELIABILITY - Ability to perform the promised service dependably and accurately

Conceptual Model of Service Quality

GAP 1: Not knowing what customers expect

GAP 2: wrong service quality standards
GAP 3: The service performance gap

GAP 4: promises do not match actual delivery

GAP 5: The difference between customer perception and expectation

Right First Time’

‘Right First Time’ design approach embodies our commitment and passion to minimize development time
and costs. It brings together our promise of robust processes and world class capabilities with the attitude to
make it happen ‘Right First Time’. Many people are skeptical about the practicality of achieving Right First
Time. In reality it is a state of mind that recognizes the high cost of design problems and the attitude to
improve oneself, the team and processes to prevent them from occurring and to achieve our goals.
An inherent goal of “First Time Right” theory is to prevent the unnecessary waste of time and
resources associated with detecting and correcting errors. Non-value-add activities such as second and
third reviews are eliminated as errors are reduced and fewer are returned for multiple review cycles.
Zero defects is a way of thinking and doing that reinforces the notion that defects are not acceptable, and
that everyone should "do things right the first time". Zero defects is NOT about being perfect. Zero defects
is about changing your perspective.

It does this by demanding that you:

 Recognize the high cost of quality issues.
 Continuously think of the places where flaws may be introduced.
 Work proactively to address the flaws in your systems and processes, which allow defects to occur.
Customer Focus
Total quality management ensures that employees understand their target customers well before
making any changes in the processes and systems to deliver superior quality products for better customer
satisfaction. In fact, organizations introduce total quality management or any other quality management
process to increase their customer base and levels of customer satisfaction. Total Quality management
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increases an organization’s database of loyal customers who would not go anywhere, no matter what.
without customers a business can’t even exist.
In case of physical products, customers are satisfied when the products are:
• Durable
• Reliable
• Easy to Use
• Adaptable
• Appropriate
In case of service industry customers are satisfied only when:
• Employees are friendly and polite
• Employees are honest and do not make fake promises
• Employees are easy approachable
• Employees are willing to listen and address customer grievances
• Organizations respond to customer requests on time.

Steps in applying customer focus includes-

1. Understanding customers’ needs and expectations
2. Balanced approach among customers and other stakeholders
3. Communicating these needs and expectations throughout the company
4. Monitoring customer satisfaction and acting on results

Continuous Improvement
Continuous improvement is an ongoing effort to improve products, services or processes. These efforts can
seek “incremental” improvement over time or “breakthrough” improvement all at once. Also stated as:
Continuous improvement, or Kaizen, is a method for identifying opportunities for streamlining work and
reducing waste.
Among the most widely used tools for continuous improvement is a four-step quality model—the plan-do-
check-act (PDCA) cycle, also known as Deming Cycle or Shewhart Cycle:
Plan: Identify an opportunity and plan for change.
Do: Implement the change on a small scale.
Check: Use data to analyze the results of the change and determine whether it made a difference.
Act: If the change was successful, implement it on a wider scale and continuously assess your results. If the
change did not work, begin the cycle again.
Benefits of Continuous Improvement:
1. Streamline Workflows
2. Reduce Project Costs and Prevent Overages
3. Gain Flexibility

W. Edwards Deming
W Edwards Deming was an American statistician who was credited with the rise of Japan as a
manufacturing nation, and with the invention of Total Quality Management (TQM). Deming went to
Japan just after the War to help set up a census of the Japanese population. While he was there, he
taught ‘statistical process control’ to Japanese engineers – a set of techniques which allowed them to
manufacture high-quality goods without expensive machinery.

Deming returned to the US and spent some years in obscurity before the publication of his book
“Out of the crisis” in 1982. In this book, Deming set out 14 points which, if applied to US
manufacturing industry, would he believed, save the US from industrial doom at the hands of the
Japanese.
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In the 1970s, some of Deming's Japanese proponents summarized his philosophy in a two-part
comparison:

1. Organizations should focus primarily on quality, which is defined by the equation ‘Quality =
Results of work efforts/total costs’. When this occurs, quality improves, and costs plummet,
over time.
2. When organizations' focus is primarily on costs, the costs will rise, but over time the quality
drops.

The Deming Cycle

Also known as the Shewhart Cycle, the Deming Cycle, often called the PDCA , was a result of the
need to link the manufacture of products with the needs of the consumer along with focusing
departmental resources in a collegial effort to meet those needs.

The steps that the cycle follow are:

1. Plan: Design a consumer research methodology which will inform business process
components.
2. Do: Implement the plan to measure its performance.
3. Check: Check the measurements and report the findings to the decision makers
4. Act/Adjust: Draw a conclusion on the changes that need to be made and implement them.

Deming’s other chief contribution came in the form of his 14 Points for Management, which
consists of a set of guidelines for managers looking to transform business effectiveness.

1) Create constancy of purpose for improvement of product and service - Inspire the workers to stay
competitive in the market and remind about the importance of stability in jobs and new opportunities which
may come up in later stages, as inducing a sense of purpose in producing quality products will work as the
inspiration to work efficiently.

2) Adopt the new philosophy - The customer demands and taste change very fast and the competition in the
market grow at a rapid rate today, and we have to accept new philosophies according to the market trends
and technology revolutions.

3) Cease dependence on mass inspection - Instead of inspecting the product for quality after production,
infuse quality at the beginning itself with production quality control, as this will ensure no raw materials are
wasted for the sake of quality.

4) End the practice of awarding business on price tag alone - Instead, minimize total cost - move towards
a single supplier for any item, on trust.

5) Constantly and forever improve the system of production and service - Enterprise systems and
services must keep growing indefinitely in order to catch up with the competitive market.

6) Institute modern methods of training on the job - A trained worker has more productivity and quality
than an untrained one, so giving training sessions will drastically improve the quality of the person and
directly it helps in better product quality performance.

7) Institute modern methods of supervision - A company can display stunning growth if potential leaders
are identified and encouraged.
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8) Drive out fear - Creating a fearful impression in the employees does not give more quality and
productivity to work. If a person is not working willingly with satisfaction then he can never do a work
perfectly even if he has the intention to be perfect in conscious mind, so driving out fear is essential.

9) Break down barriers between staff areas - The workers in design, sales, and production must work
together to face problems and resolve them, which takes the company to better quality assurance
management and also other profit with better planning.

10) Eliminate numerical goals for the work force - Slogans or exhortations call for more quantity in
production than focusing on quality control in manufacturing, which will severely damage the quality
management process. Employees should have a calm and quiet quality atmosphere in the company.

11) Eliminate work standards and numerical quotas - This focuses on quantity rather than quality of
product.

12) Remove barriers that hinder the hourly worker - Supervisor responsibility must be focused on
quality, not numbers. Abolish annual or merit rating and MBO completely.

13) Institute a vigorous program of education and training - A person must grow after joining a
company, and letting them learn new technology and techniques will increase employee longevity.

14) Create a situation in top management that will push every day on the above points - Just like
products and services, every employee in a company must work to accomplish the transformation.

Philip Crosby
Born in 1926, Philip Crosby was an author and businessman who contributed to management theory
and quality management practices. He started his career in quality much later than Deming and
Juran. He founded Philip Crosby and Associates, which was an international consulting firm on
quality improvement.

He wrote the best-seller Quality is free in 1979, at a time when the quality movement was a rising,
innovative force in business and manufacturing. In the 1980s his consultancy company was advising
40% of the Fortune 500 companies on quality management.

Crosby defined Four Absolutes of Quality Management, which are

1. The First Absolute: The definition of quality is conformance to requirements

2. The Next Absolute: The system of quality is prevention
3. The Third Absolute: The performance standard is zero defects
4. The Final Absolute: The measurement of quality is the price of non-conformance

Zero Defects

Crosby's Zero Defects is a performance method and standard that states that people should commit
themselves to closely monitoring details and avoid errors. By doing this, they move closer to the
zero defects goal. According to Crosby, zero defects was not just a manufacturing principle, but was
an all-pervading philosophy that ought to influence every decision that we make.

His approach to quality was laid out in Quality is free and is often summarized as the 14 steps:

1. Management commitment
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First and foremost, management must be committed to improving the quality in a company. This
commitment must also be transparent to all employees so that proper attitudes towards a Zero
Defect product or service line are modeled.

2. Quality improvement team

Representatives from each department or function should be brought together to form a quality
improvement team. These should be people who have sufficient authority to commit the area
they represent to action.

3. Quality measurement

The status of quality should be determined throughout the company. This means establishing quality
measures for each area of activity that are recorded to show where improvement is possible,
and where corrective action is necessary.

4. Cost of quality evaluation

The cost of quality is not an absolute performance measurement, but an indication of where the
action necessary to correct a defect will result in greater profitability.

5. Quality awareness

This involves, through training and the provision of visible evidence of the concern for quality
improvement, making employees aware of the cost to the company of defects. Crosby
stresses that this sharing process is a - or even the - key step in his view of quality.

6. Corrective action

Discussion about problems will bring solutions to light and also raise other elements for
improvement. People need to see that problems are being resolved on a regular basis.
Corrective action should then become a habit.

7. Establish an ad-hoc committee for the Zero Defects Programme

Zero Defects is not a motivation programme - its purpose is to communicate and impart the notion
that everyone should do things right first time. You need to create a committee to ensure that there
are zero defects in your products and services.

8. Supervisor training

All managers should undergo formal training on the 14 steps before they are implemented. A
manager should understand each of the 14 steps well enough to be able to explain them to his
or her people.

9. Zero Defects Day

It is important that the commitment to Zero Defects as the performance standard of the company
makes an impact, and that everyone gets the same message in the same way. Zero Defects Day,
when supervisors explain the programme to their people, should make a lasting impression as a 'new
attitude' day.
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10. Goal Setting

Each supervisor gets his or her people to establish specific, measurable goals to strive for. Usually,
these comprise 30, 60, and 90-day goals. By bringing everyone in the company in on setting goals
for improvement, you can ensure greater commitment to achieving zero defects.

11. Eliminate Causes of Errors

Employees are asked to describe, on a simple, one-page form, any problems that prevent them from
carrying out error-free work. Problems should be acknowledged within twenty-four hours by
the function or unit to which the problem is addressed.

12. Implement Recognition for Participants

It is important to recognize those who meet their goals or perform outstanding acts with a prize or
award, although this should not be in financial form. The act of recognition is what is
important.

13. Create Quality Councils

The quality professionals and team-leaders should meet regularly to discuss improvements and
upgrades to the quality programme.

14. Do it over again

During the course of a typical programme, lasting from 12 to18 months, turnover and change will
dissipate much of the educational process. It is important to set up a new team of representatives
and begin the programme over again, starting with Zero Defects day. This 'starting over again' helps
quality to become ingrained in the organization .

Dr Joseph M Juran
Dr Joseph M Juran developed the quality trilogy – quality planning, quality control and quality
improvement. Good quality management requires quality actions to be planned out, improved and
controlled. The process achieves control at one level of quality performance, then plans are made to
improve the performance on a project by project basis, using tools and techniques such as Pareto
analysis.
Quality Trilogy:

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  Develop a process which is able to produce the product.
Improvement
 Optimise the process.
Quality Control  Prove that the process can produce the product under operating
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conditions with minimal inspection.

 Transfer the process to Operations.

Juran believed quality is associated with customer satisfaction and dissatisfaction with the product,
and emphasised the necessity for ongoing quality improvement through a succession of small
improvement
projects carried out throughout the organisation. His ten steps to quality improvement are:
• Build awareness of the need and opportunity for improvement
• Set goals for improvement
• Organise to reach the goals
• Provide training
• Carry out projects to solve problems
• Report progress
• Give recognition
• Communicate results
• Keep score of improvements achieved
• Maintain momentum
He concentrated not just on the end customer, but on other external and internal customers. Each
person along the chain, from product designer to final user, is a supplier and a customer. In addition,
the person will be a process, carrying out some transformation or activity.

UNDERSTANDING JAPANESE MANAGEMENT

Japan was carpet bombed in 1945. Despite that, it rose meteorically to become the third largest
economy in the world. How did it achieve that? Yasutak Sai offers the reasons in his book, “Eight
Core Values of Japanese Businessman”.

REASON 1 – Group Orientation:

The Japanese do things in a group; be it eating, playing or working. To them, it’s the team that comes ahead
of the individual. For example, while introducing, they describe themselves as members of a group and then
give their names. Like, “I am from Hitachi. My name is Sato. I am with HRD.” All employees, including the
officers, share one large open office. There are no cubicles and corner rooms. New recruits are hired once
in each April so that they can be given group induction. This is intended to develop a sense of group loyalty.
Across the board, Japanese employers expect the newly hired to stay with them throughout their lifetime.
For most Japanese workers nothings is so important as teamwork in the workplace. Most of the Japanese
labor unions are “company unions” rather than trade unions. Union members are quite cooperative with
management and look upon it as ‘our’ company.
REASON 2 – Diligence:
The Japanese work hard and work long. They value learning, rather intensely. Their education does not
cease even after they get into a job; in-fact, they even learn different aspects of a job. . Most Japanese
continue to put great effort into their studies; nothing will stop their appetite for knowledge. Yes, they are
knowledge hungry. Every Japanese company spends 10% of their expenditure on employee training. Long
hours of work is in the Japanese mindset is a virtue.
Most people who have climbed the top of the corporate ladder have done so by dint of their hard work. This
has inspired a generation of Japanese to follow the precept of work hard. The Japanese have also had a
propensity to overcome calamities with equanimity and speed. Interestingly, the Japanese do not take leave
from work. They do not even take 2 full days off every weekend.
REASON 3 – Aesthetics and perfectionism:
The Japanese love perfectionism. Like, they prepare food and eat it in an attractive manner. Haphazard
eating is not for them. The supreme example is the “Maku-no-uchi” style boxed lunch that consists of small
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portions of space for variety of food items. Also, when they receive a gift they unwrap it neatly so that the
wrapper can be reused. It’s an expression of gratitude to the giver. All the factories have “zero defect” as a
goal to be achieved. They are such perfectionists that they don’t work by the clock. Completion of work is
far more important to them than going home at the allotted time
REASON 4 – Curiosity and emphasis on Innovation:
Japanese look at the minutest of details. Nothing is too small for them. They have an information thirst
syndrome. For the Japanese new is better than old. That is the reason why they rebuild their symbol of
nation, “Ise Shrine” every 20 years. Almost all the companies have “new business development” divisions.
Kaizen, also known as continuous improvement, originated in Japan and is today followed the world
over. For instance, production engineers adopt numerical control devices, flexible manufacturing methods,
etc. to achieve cost reduction, quality improvement and increased productivity. Curiosity may have killed
the cat but not the Japanese. The Japanese have a never ending interest in how their counterparts in foreign
countries do their work, what is their experience and outcomes. They flock to trade fares to scour for new
knowledge. They love to create and recreate things, which are convenient to them. It’s not the same as
innovation. While innovation is dramatic and perhaps a one time phenomenon, Kaizen is subtle and
continuous.
REASON 5 – Respect for form and hana yori dango :
Japanese observe rituals and customs almost to a fault. These range from first time meetings to the
presentation of souvenirs, from employee induction to retirement parties. The businessperson will first bow
instead of shaking hands. Schools stipulate uniform clothing and hair length. Offices demand everyone, the
CEO to the janitor to wear the same work clothes.
REASON 6 – A mind for competition and outlook on rewards:
From barbers to chefs workmen pit their skills against their peers. They tend to be more competitive when in
groups than as individuals. They hold diverse opinions on money and profit. On one hand, they place a high
value not on money, but on other things like honor, trust etc. On the other, they look for rewards. Victory in
competition is still a virtue worthy of great respect. They welcome competition. The belief is that this will
bring out the best in them
REASON 7 – Silence as eloquence:
Japanese generally speak less often. Americans associate silence in a negative context: anxiety, hostility or
awkwardness but in Japan it means respect for the person who has spoken. They place importance on
writing as well. They don’t prepare too much of note; they prefer less notes to elaborate ones. For them
silence is golden.
REASON 8 – Perception of time:
Meetings, private or business, start on schedule. Products are delivered on time, every time. The so-called
“Keiretsu” is an example of companies seeking direct or indirect benefits as a result of business relations of
a long-term nature. Also for them, what is happening at that moment is more important than what may
happen in future. They constantly strive to reduce the production cycle. They are quick on product
development.

ISO 9001: 2000 (QMS)

ISO stands for International Organization for Standardization. The ISO 9000 family of quality management
systems standards is designed to help organizations ensure that they meet the needs of customers and other
stakeholders while meeting statutory and regulatory requirements related to a product or service.
ISO 9001 deals with the requirements that organizations wishing to meet the standard must fulfill. The ISO
9000:2000 Standards together form a set of guidelines for implementing and operating an effective and
efficient Quality Management System.
The ISO 9001:2000 Standard contains Quality Management System requirements. This is the only ISO 9000
series Standard against which your Quality Management System can be certified.
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Third-party certification bodies provide independent confirmation that organizations meet the requirements
of ISO 9001.
Objectives of ISO 9000 Standards
1. Achieve, maintain, and improve product quality
2. Improve quality of operations to continually meet customers’ and stakeholders’ needs
3. Provide confidence to management, employees, customers, and stakeholders that quality
requirements are fulfilled
4.

Thus, “ISO 9001 certified” means an organization has met the requirements in ISO9001.

Structure of the ISO 9001:2000 Standard

21 elements organized into five major sections:
1. System Requirements
2. Management Responsibility
3. Resource Management
4. Product Realization
5. Measurement, Analysis, and Improvement
Overview of the Certification Process

Time to complete
The typical certification process may last from six to twelve months.

Factors affecting completion process

The amount of time it takes to complete the certification can depend on several factors, such as
• Commitment of management
• Complexity and size of the organization
• Project management skills of the project team
• Documentation skills of the project team
• Number and complexity of existing processes, and
• Amount and adequacy of existing documentation.

ISO 14001 : 1996 (EMS)

Introduction
Organizations of all kinds are increasingly concerned with achieving and demonstrating sound
environmental performance by controlling the impacts of their activities, products and services on the
environment, consistent with their environmental policy and objectives. They do so in the context of
increasingly stringent legislation, the development of economic policies and other measures that foster
environmental protection, and increased concern expressed by interested parties about environmental
matters and sustainable development.
Many organizations have undertaken environmental “reviews” or “audits” to assess their environmental
performance.
What is ISO – 14001:1996
ISO 14000 is a family of standards related to environmental management that exists to help organizations
(a) Minimize how their operations (processes, etc.) negatively affect the environment (i.e. cause adverse
changes to air, water, or land);
(b) Comply with applicable laws, regulations, and other environmentally oriented requirements; and
(c) Continually improve in the above.

The ISO 14000 series is based on a voluntary approach to environmental regulation. The series includes the
ISO 14001 standard, which provides guidelines for the establishment or improvement of an EMS. The
success of the system depends on commitment from all levels and functions of the organization, and
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especially from top management. A system of this kind enables an organization to develop an environmental
policy, establish objectives and processes to achieve the policy commitments, take action as needed to
improve its performance and demonstrate the conformity of the system to the requirements of this
International Standard

HACCP
Hazard Analysis and Critical Control Point (HACCP) is an internationally recognized system for reducing
the risk of safety hazards in food. A HACCP System requires that potential hazards are identified and
controlled at specific points in the process. This includes biological, chemical or physical hazards. Any
company involved in the manufacturing, processing or handling of food products can use HACCP to
minimize or eliminate food safety hazards in their product.
Building a HACCP System
Implementing a HACCP System requires that both Prerequisite Programs and HACCP Plans are
implemented.
Prerequisite programs are programs that are put in place in the facility to control hazards in the
environment, preventing contamination of the product. Prerequisite programs ensure a hygienic
environment, and good manufacturing processes for personnel that reduce the risk of contamination of the
food product.
HACCP Plans are prepared for each process or product, and identify possible hazards and controls in place
to make sure the hazards are eliminated or controlled to ensure acceptable levels in the food product.

HACCP is based on several principles:

1. Conduct a Hazard Analysis - This is where you evaluate your processes and identify where hazards can
be introduced. Hazards can be physical (i.e. metal contamination), chemical (i.e. can a cleaning product
contaminate the product, are there toxins that could contaminate the product?) or biological (at what points
could bacteria or virus contaminate your product?).

2. Identify the Critical Control Points - At what steps in your process can controls be applied to prevent or
eliminate the hazards that have been identified? These are your critical control points.
For each critical control point you will identify the preventive measure. How will you prevent the hazard?
Ex: Use of specific Temperature, pH, time, procedures etc…

3. Establish Critical Limits – The next step is to establish criteria for each critical control point. Establish
the limits for temperature, time, pH, salt level, chlorine level or other processing characteristic that will
control the hazard. This is the critical limit for the critical control point.

4. Establish Monitoring Procedures- What will you measure and how will you measure it? You need to
monitor the process at the critical control point and keep records to show that the critical limits have been
met.
The monitoring program will be made up of physical measurement
5. Establish Corrective Actions - Establish what actions needs to be taken if a critical limit is not met. This
will be identified ahead of time for each CCP. The action must make sure that no unsafe product is released.
There must also be an evaluation of the process to determine the cause of the problem and an elimination of
the cause.

6. Establish Record Keeping Procedures – Determine what records are needed to show that the critical
limits have been met, and the system is in control. Address regulatory requirements and include records from
the development of the system and the operation of the system.
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7. Establish Verification Procedures - The HACCP plan must be validated. Once the plan is in place, make
sure it is effective in preventing the hazards identified. Test the end product, verify that the controls are
working as planned.

STRATEGIC QUALITY PLANNING

Define the term strategy?
In order to understand the concept of strategic management, first we need to understand the literal meaning of the word
“strategy”. The definition is mentioned below:
1. The science and art of using all the forces of a nation to execute approved plans as effectively as possible during peace or war.
The science and art of military command as applied to the overall planning and conduct of large-scale combat operations.
2. A plan of action resulting from strategy or intended to accomplish a specific goal.
3. The art or skill of using stratagems (tricks) in endeavors (activities) such as politics and business

QUALITY STATEMENTS
Quality statements are part of strategic planning process and once developed, are occasionally reviewed and updated.
There are three types of quality statements:
1. Vision statement
2. Mission statement
3. Quality policy statement
Once developed, they are only occasionally reviewed and updated.
 They are the part of the strategic planning process.
 The utilization of the three statements varies considerably from organization to organization.

1. Vision Statement:
 The vision is a short declaration of what an organization aspires to be tomorrow.
 It is the ideal state that might never be reached but which we continually strive to achieve.
 Successful visions are timeless, inspirational and become deeply shared within the organization.
 Successful vision provides a guide line for decision making.
It is important that the leader articulate and act upon the vision and those employees understand the
vision and can connect their work with the well-being of the organization
An example of Vision statement is:
 Apple’s – Computing for the masses
 Disney – theme park’s the happiest place on the earth, and
 Marriott’s – To become the premiere provider and facilitator of leisure & vacation experiences in the world.

2. Mission Statement: Mission Statement

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

An example of mission statement is:

 Ford Motor Company – Our mission is to improve continually our products and services to meet our customers’ needs,
allowing us to prosper as a business and to provide a reasonable return on to our shareholders, the owners of our
business.
 Marriott –To enhance the lives of our customers by creating and enabling unsurpassed vacation and leisure
experiences.
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 Walt Disney Company – Mission is to be one of the world's leading producers and providers of entertainment and
information.

Brainstorming – a collection of ideas

What is it?
The term ‘Brainstorming’ has been used since the 1890's: first to mean a mental disturbance, then by the
1920s to mean a brainwave, then from 1938 in Osborn's sense of group brainstorming. The current use of the
term brainstorming is as a technique that encourages creative thinking and the generation of ideas.
When to use it
 Generating a list of ideas
 Identifying possible data requirements
 Developing objectives for solutions
 Generating possible solutions
 Developing action plans
What does it achieve?
Providing the rules and principles are carefully followed, brainstorming can achieve the following:
 Many ideas are produced in a short timeframe
 Enable participants to both contribute individually and to benefit from the ideas generated by others.
 Encourage the generation of ‘unusual’ ideas
 Encourage deeper thinking about particular problems
 Create the environment that will enhance group activity and teamwork
 Create a more positive environment in which to approach problem solving
Key steps
 Avoid criticism
 Encourage and ideas - freewheel
 Quantity of ideas first
 Record all ideas
 Reflect on ideas – incubate

Variations
Nominal group technique – Open to all and rejection through votes
 The nominal group technique is a type of brainstorming that encourages all participants to have an
equal say in the process. It is also used to generate list of ideas.
 Participants are asked to write their ideas anonymously. Then the moderator collects the ideas and
the group votes on each idea.
 After distillation, the top ranked ideas may be sent back to the group or to subgroups for further
brainstorming. For example, one group may work on the color required in a product. Another group
may work on the size, and so forth. may take a few practice sessions to train the team in the method
before tackling the important ideas.

Group passing technique – Open to all for deep thinking

 Each person in a circular group writes down one idea, and then passes the piece of paper to the next
person, who adds some thoughts..
 The group may also create an "idea book" and post a distribution list or routing slip to the front of
the book. On the first page is a description of the problem. The first person to receive the book lists
his or her ideas and then routes the book to the next person on the distribution list.

Team idea mapping method – Open to all with no rejection of ideas

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 This method of brainstorming works by the method of association. It may improve collaboration and
increase the quantity of ideas, and is designed so that all attendees participate and no ideas are
rejected.
 The process begins with a well-defined topic. Each participant brainstorms individually, then all the
ideas are merged onto one large idea map. During this consolidation phase, participants may discover
a common understanding of the issues as they share the meanings behind their ideas. During this
sharing, new ideas may arise by the association, and they are added to the map as well. Once all the
ideas are captured, the group can prioritize and/or take action.

Electronic brainstorming – Open to all via Electronic mode

 Electronic brainstorming outperforms both regular brainstorming and nominal group brainstorming.
It is a computerized version of the manual brainstorming technique typically supported by an
electronic meeting system (EMS) but simpler forms can also be done via email and may be browser
based, or use peer-to-peer software.
 With an electronic meeting system, participants share a list of ideas over a network. Ideas are entered
independently.
Directed brainstorming – Open to all with restriction of only one idea
 Directed brainstorming is a variation of electronic brainstorming. It can be done manually or with
computers..
 In directed brainstorming, each participant is given one sheet of paper (or electronic form) and told
the brainstorming question.
 In the laboratory, directed brainstorming has been found to almost triple the productivity of groups
over electronic brainstorming.

Guided brainstorming – open to all with constraints of perspective and time

 A guided brainstorming session is time set aside to brainstorm either individually or as a collective
group about a particular subject under the constraints of perspective and time..
 Participants are asked to adopt different mindsets for pre-defined period of time while contributing
their ideas to a central mind map drawn by a pre-appointed scribe. Having examined a multi-
perspective point of view, participants seemingly see the simple solutions that collectively create
greater growth. Action is assigned individually.

Individual brainstorming – Open to all with individual method

 "Individual brainstorming" is the use of brainstorming in private. It typically includes such
techniques as free writing, free speaking, word association, and drawing a mind map, which is a
visual note taking technique in which people diagram their thoughts
 Research has shown individual brainstorming to be more effective in idea-generation than group
brainstorming.

Question brainstorming – Open to all with no new idea discussion

 This process involves brainstorming the questions, rather than trying to come up with immediate
answers and short term solutions. Theoretically, this technique should not inhibit participation as
there is no need to provide solutions.
 "Questorming" is another phrase for this mode of inquiry

Pareto Analysis
What is a Pareto Chart?
th
 The Pareto Chart is named after Vilfredo Pareto, a 19 century economist who postulated that a
large share of wealth is owned by a small percentage of the population. This basic principle
translates well into quality problems.
 A Pareto Chart is a series of bars whose heights reflect the frequency or impact of problems. The
15

bars are arranged in descending order of height from left to right. This means the categories
represented by the tall bars on the left are relatively more significant than those on the right.
• A Pareto Chart can answer the following questions:
o What are the largest issues facing our team or business?
o What 20% of sources are causing 80% of the problems?
o Where should we focus our efforts to achieve the greatest improvements?

Fishbone Diagram (Ishikawa/cause effect Diagram)

Cause effect diagram (Ishikawa)
Ishikawa diagrams (also called fishbone diagrams, herringbone diagrams, cause-and-effect diagrams,
or Fishikawa) are causal diagrams created by Kaoru Ishikawa (1968) that show the causes of a specific
event and is considered one of the seven basic tools of quality control. Common uses of the Ishikawa
diagram are product design and quality defect prevention, to identify potential factors causing an
overall effect. Each cause or reason for imperfection is a source of variation. Causes are usually grouped
into major categories to identify these sources of variation. The categories typically include:
 People: Anyone involved with the process
 Methods: How the process is performed and the specific requirements for doing it, such as policies,
procedures, rules, regulations and laws
 Machines: Any equipment, computers, tools, etc. required to accomplish the job
 Materials: Raw materials, parts, pens, paper, etc. used to produce the final product
 Measurements: Data generated from the process that are used to evaluate its quality
 Environment: The conditions, such as location, time, temperature, and culture in which the process
operates

The 6 Ms (used in manufacturing industry)

 Machine (technology)
 Method (process)
 Material (Includes Raw Material, Consumables and Information.)
 Man Power (physical work)/Mind Power (brain work): Kaizens, Suggestions
 Measurement (Inspection)
 Milieu/Mother Nature (Environment)
The original 6Ms used by the Toyota Production System have been expanded by some to include the
following and are referred to as the 8Ms. However, this is not globally recognized. It has been suggested to
return to the roots of the tools and to keep the teaching simple while recognizing the original intent; most
programs do not address the 8Ms.
 Management/Money Power
 Maintenance

The 8 Ps (used in marketing industry)

1. Product/Service
2. Price
3. Place
4. Promotion
5. People/personnel
6. Process
7. Physical Evidence
8. Packaging
The 8 Ps are primarily used in product marketing.
The 5 S’s (used in service industry)
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1. Surroundings
2. Suppliers
3. Systems
4. Standard documentation skills
5. Scope of work

Flow Group Concept

FLOW

Csíkszentmihályi outlines his theory that people are happiest when they are in a state of flow—a state of
concentration or complete absorption with the activity at hand and the situation. It is a state in which people
are so involved in an activity that nothing else seems to matter. The idea of flow is identical to the feeling of
being in the zone or in the groove (channel
Csíkszentmihályi describes flow as "being completely involved in an activity for its own sake. The ego falls
away. Time flies. Every action, movement, and thought follows inevitably from the previous one, like
playing music, dancing, playing football etc. Your whole being is involved, and you're using your skills to
the utmost."

Definition - Flow is the mental state of operation in which a person performing an activity is fully immersed
in a feeling of energized focus, full involvement, and enjoyment in the process of the activity. In essence,
flow is characterized by complete absorption in what one does.

Csikszentmihalyi characterized nine component states of achieving flow including:

1. challenge-skill balance
2. merging of action and awareness
3. clarity of goals
4. immediate and unambiguous feedback
5. concentration on the task at hand
6. paradox of control
7. transformation of time
8. loss of self-consciousness
9. autotelic experience
Group flow is notably different from independent flow as it is inherently mutual. Group flow is attainable
when the performance unit is a group, such as a team. When groups cooperate to agree on goals and
patterns, social flow, commonly known as group cohesion, is much more likely to occur. If a group still has
not entered flow, a team-level challenge may stimulate the group to harmonize.

The characteristics of such a group include:

 Creative spatial arrangements: Chairs, pin walls, charts, but no tables; thus work is primarily
standing and moving.
 Playground design: Charts for information inputs, flow graphs, project summary, craziness (here also
craziness has a place), safe place (here all may say what is otherwise only thought), result wall, open
topics etc.
 Parallel, organized working
 Target group focus
 Advancement of existing one (prototyping)
 Increase in efficiency through visualization
 Using differences among participants as an opportunity, rather than an obstacle

KAIZEN
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kaizen, is the Japanese word for "improvement". In business, kaizen refers to activities that continuously
improve all functions and involve all employees from the CEO to the assembly line workers. It also applies
to processes, such as purchasing and logistics, that cross organizational boundaries into the supply chain. It
has been applied in healthcare, psychotherapy, life-coaching, government, banking, and other industries..
The key features of Kaizen include:
 Improvements are based on many, small changes rather than the radical changes that might arise
from Research and Development
 As the ideas come from the workers themselves, they are less likely to be radically different, and
therefore easier to implement
 Small improvements are less likely to require major capital investment than major process changes
 The ideas come from the talents of the existing workforce, as opposed to using R&D, consultants or
equipment – any of which could be very expensive
 All employees should continually be seeking ways to improve their own performance
5S Methodology
5S represents Japanese words that describe the steps of a workplace organization process.
 Seiri (Sort)
 Seiton (Straighten, Set)
 Seiso (Shine, Sweep)
 Seiketsu (Standardize)
 Shitsuke (Sustain)

In simple terms, the five S methodology helps a workplace

1. remove items that are no longer needed (sort),
Distinguishing between necessary and unnecessary things, and getting rid of what you do not need
2. organize the items to optimize efficiency and flow (straighten),
The practice of orderly storage so the right item can be picked efficiently (without waste) at the right time,
easy to access for everyone, a place for everything and everything in its place
3. clean the area in order to more easily identify problems (shine),
Create a clean worksite without garbage, dirt and dust, so problems can be more easily identified (leaks,
spills, excess, damage, etc)
4. implement color coding and labels to stay consistent with other areas
(standardize)
Setting up standards for a neat, clean, workplace
5. Develop behaviors that keep the workplace organized over the long term
(sustain).
Implementing behaviors and habits to maintain the established standards over the long term, and making the
workplace organization the key to managing the process for success

Process Mapping & Improvement (5 W & 1 H)

5W1H (who, what, where, when, why, how) is a method of asking questions about a process or a problem
taken up for improvement. Four of the W’s (who, what, where, when) and the one H is used to comprehend
for details, analyze inferences and judgment to get to the fundamental facts and guide statements to get to
the abstraction.

A STEP BY STEP APPROACH USING 5W & 1H

1. This involves approaching a problem by developing a problem statement developed using
the following;
What, When, Where, Which, Who & How.
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2. Each of the 5Ws & 1H above relate to the following questions to ask relating to the
problems being investigated

3. Using the 5W & 1H questioning technique above, it is possible to develop a problem

statement which will lead to a better understanding of the problem and hence a solution.
4. Once a problem statement has been developed it is necessary to determine the potential
causes of the problem.
5. To aid this process, write the problem statement on a flip chart then undertake to carry out
a brainstorming exercise and hence produce a list of possible causes.
6. Once a list of possible causes has been produced, it is necessary to cluster them into one of four main
categories as described under the “Fishbone Diagram or 4M Chart” as shown, where the major cause can be
Manpower, Machines, Methods and Material.
7. With each major cause identified, now as a group determine what factors influence the major causes.
8. Using the “Fishbone or 4M Chart as above, progress to transfer all the data onto it.
9. At this stage, it would be necessary to evaluate all the causes so as to determine which are directly
influencing the problem statement. However, it is at this stage that we wish to introduce the “FOG Factor”
10. The “FOG Factor” is a method used to identify data and its influence on the problem statement, were
FOG stands for Facts, Opinions and Guesses.

Customer Satisfaction?
Customer satisfaction is the state of mind that customers have about a company when their expectations
have been met or exceeded over the lifetime of the product or service. The achievement of customer
satisfaction leads to company loyalty and product repurchase.

DETERMINANTS OF CUSTOMER SATISFACTION

Key Indicators for Physical Products
• Reliability
• Aesthetics
• Adaptability
• Usability
• Functionality
• Appropriateness
Key Indicators for Services
• Friendliness/courteousness of employees
• Safety/risk of service
• Billing/invoicing procedure
• Responsiveness to requests
• Appearance of physical facilities
• Approachability of the service provider
• Willingness to listen to customer
• Honesty and an ability to communicate in clear language
SATISFACTION = PERCEPTION - EXPECTIATIONS
Ex: 1: Perception is 8/10
Expectation is 3/10
Customer is Satisfied 
Ex: 2: Perception is 5/10
Expectation is 8/10
Customer is Dissatisfied 

Basic steps in measuring and managing customer satisfaction

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The following sections outline a sound and simple approach for measuring and managing customer
satisfaction:
1. Know who your customers are;
2. Understand your customers’ needs;
3. Measure your customer service performance;
4. Focus on priorities;
5. Improve your processes.

Purpose
to set a context in which you can produce reliable and useful measures of service performance

Process
1. identify all your current customers
2. gather all the relevant information you have to describe the relationship of each customer to your business
3. use this information to define market segments that group similar customers together

Outcomes
• a clear segmentation of your customer base
• a ‘customer frame’ or list of customers from which to select a representative sample (or census) for
research
Understand your customers’ needs:

Purpose

to determine how customers define ‘quality of service’ and therefore what you should be measuring to
monitor your quality of service

Process

1. enlist the help of qualified researchers (to ensure reliability and validity of the information obtained)

2. choose an appropriate method for exploring what customers feel are the most important attributes of
the type of service you provide to them

3. select a small number of customers from each market segment and invite them to participate in this
research

Outcomes

• a list of approximately 10 key service attributes (which together constitute how customers define quality of
service)

Measure your customer service performance:

Purpose

to determine what are the priority areas you need to focus on to improve your quality of service (and
therefore business performance)

Process

1. enlist the help of qualified researchers (to ensure reliability and validity of the measures)
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2. choose an appropriate method for obtaining measures from your customers (eg telephone interviews, face
to face interviews, self-completion questionnaires, etc...)

3. decide on any supplementary information that you might need from customers to interpret their
satisfaction (eg industry, geographical location, size)

Outcomes

• overall satisfaction with service

Focus on priorities

Purpose

to avoid wasting valuable resources and instead focus those resources on improvements and changes that
will generate the greatest improvement in overall customer satisfaction

Process

1. follow up with customers, if necessary, to get a deeper insight

Outcomes

• clear direction for improvement

Improve your processes

Purpose

to translate the customer satisfaction priorities into action that results in future increases in customer
satisfaction

Process

1. identify which of your core processes impact on the customer satisfaction priorities

2. establish improvement teams to map and analyze those processes to find out specifically where to make
improvements

Outcomes

• processes that are better aligned to serving customers

• increased customer satisfaction

Top 5 Ways to Measure Customer Satisfaction

• Survey Customers

• Understand Expectation

• Find Out Where You’re Failing

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• Pinpoint Specifics

• Assess the Competition

Waste Management

Much of the waste created in hotels is generated from within the kitchen (organic food waste, packaging,
aluminum cans, glass bottles, corks and cooking oils), or from the housekeeping department (cleaning
materials and plastic packaging). Waste is not only created in guest rooms but also in public areas, hotel
gardens (engine oils, pesticides, paints and preservatives to grass and hedge trimmings) and offices (toner
cartridges, paper and cardboard waste). And refurbishment and renovation projects undertaken at the hotel
contribute further to the waste generated by the property.
Hotel waste comprises of two components, Biodegradable (Wet) waste and Non-biodegradable (Dry) waste.
The wet waste comprises of food, vegetable and non-veg waste whereas the dry waste comprises of plastic
bottles, papers, plastic wrappers, bags etc.

Cost of Quality
Quality costs are defined are those costs associated with the non-achievement of product or service quality
as defined by the requirements established by the organization and its contracts with customers and society.
Simply stated, quality cost is the cost of poor products or services.
Cost of Quality = Cost of Prevention + Cost of Appraisal +Cost of Failure

CATEGORIES & ELEMENTS OF QUALITY COST

I. Preventive Cost Category
 Marketing/Consumer/User:
Costs are incurred in the accumulation and continued evaluation of customer and user quality needs and
perceptions affecting user satisfaction with the organizations product or service.
 Product/Service/Design Development:
Costs are incurred to translate customer and user needs in to reliable quality standards and requirements and
to manage the quality of new product or service.
 Purchasing:
Costs are incurred to assure conformance requirements of supplier parts, materials or processes and to
minimize the impact of supplier non conformance on the quality of delivered products or services.
 Operations (Manufacturing or service):
Costs are incurred in assuring the capability and readiness of operations to meet quality standards and
requirements and to impart quality education to operating personnel.
 Quality Administration:
Costs are incurred in the overall administration of the quality management function.
II. Appraisal Cost Category
 Purchasing Appraisal Costs:
Purchasing appraisal costs can generally be considered the costs incurred for the inspection and test of
purchased supplies or service to determine acceptability to use.
 Operations (Manufacturing or service) Appraisal Costs:
Operations appraisal costs can generally be considered the costs incurred for the test or audit required to
determine and assure the acceptability of product or service.
 External Appraisal Costs:
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External appraisal costs are incurred for field set up or installation and check out for the acceptance of
customers.
 Review of Test & Inspection:
Costs are incurred for regular reviewing inspection and test data, prior to release of the product for shipment.
 Miscellaneous Quality Evaluations:
Costs involved in quality audits to assure continued ability to provide acceptable support to the production
process.
III. Internal Failure Cost Category
• 1. Product or Service Design Failure Costs (Internal):
• Design failure costs are the unplanned costs that are incurred because of inherent design
inadequacies.
• 2. Purchasing Failure Costs:
IV. External Failure Cost Category
 Complaint Investigations of Customer or User Service:
It includes the total cost of investigating, resolving and responding to individual customer and user
complaints.
 Returned Goods:
Costs incurred in evaluating, repairing and replacing goods.
 Retrofit and Recall costs
Retrofit and recall costs are those costs required to modify or update products or field service facilities to a
new design change level, based on major redesign due to design deficiencies.
 Warranty Claims
Warranty costs include the total costs of claims paid to the customer or user after acceptance to cover
expenses, including repair costs, chemical service accident.

Reengineering Definition
“Reengineering is the fundamental rethinking and radical redesign of business processes to achieve
dramatic improvements in critical, contemporary measures of performance such as cost, quality, service,
and speed.”
Where:
1. Radical– thorough
2. Dramatic – when need arises
BPR derives its existence from different disciplines, and four major areas can be identified as being
subjected to change in BPR – organization, technology, strategy, and people – where a process view is
used as common framework for considering these dimensions.

Overview
• Business process re-engineering (BPR) originally pioneered in the early 1990s
• BPR began as a private sector technique to help organizations fundamentally rethink how they do
their work in order to dramatically improve customer service, cut operational costs, and become
world-class competitors.
• In the mid-1990s, as many as 60% of the Fortune 500 companies claimed to either have initiated
reengineering efforts, or to have plans to do so.
• A key stimulus for re-engineering has been the continuing development and deployment of
sophisticated information systems and networks. Leading organizations are becoming bolder in
using this technology to support innovative business processes, rather than refining current ways of
doing work.
• BPR seeks to help companies radically restructure their organizations by focusing on the ground-up
design of their business processes.
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• According to Davenport (1990) a business process is a set of logically related tasks performed to
achieve a defined business outcome.
• Re-engineering emphasized a holistic focus on business objectives and how processes related to
them, encouraging full-scale recreation of processes rather than repeating optimization of sub-
processes.
• Reengineering starts with a high-level assessment of the organization's mission, strategic goals, and
customer needs.
• Basic questions are asked, such as "Does our mission need to be redefined? Are our strategic
goals aligned with our mission? Who are our customers?"
• An organization may find that it is operating on questionable assumptions, particularly in terms of
the wants and needs of its customers. Only after the organization rethinks what it should be doing,
does it go on to decide how best to do it

Companies use Business Process Reengineering to:

Companies use Business Process Reengineering to improve performance substantially on key processes
that impact customers. Business Process Reengineering can:
1. Reduce costs and cycle time. Business Process Reengineering reduces costs and cycle times by
eliminating unproductive activities and the employees who perform them. Reorganization by teams
decreases the need for management layers, accelerates information flows, and eliminates the errors
and rework caused by multiple handoffs.
2. Improve quality. Business Process Reengineering improves quality by reducing the fragmentation
of work and establishing clear ownership of processes. Workers gain responsibility for their output
and can measure their performance based on prompt feedback.