MODULE – 2: MANAGING &

ORGANIZATION FOR
QUALITY
By:
Dr. Manjunatha M,
Asst. Prof. SoT, Department of CE, GITAM – BLR.
 Quality Policy

▪ Quality is a broad term and concept which is central to all companies and anyone who
delivers a product or service.

▪ Quality is the backbone of every business, because quality is what creates reputation,
word of mouth and repeat business. Without quality, it is extremely hard to build a
successful company.

▪ Because of its importance, there is a high level of focus, procedure and documentation
around quality management in all companies.

▪ Many of these procedures and documents are internally focused (quality policies), some
are external focused (quality assurances) while some serve both.

▪ It is one of the tools which companies create and use both internally and externally.
 Quality Policy
▪ Quality policy statements are always used internally as a means of establishing a baseline
for all employees to adhere to, while they are commonly made public and available to
investors, customers, suppliers and regulators.

▪ For example, some companies will incorporate a quality objective directly into an
employee’s annual goals. For being involved in a continual improvement project.

▪ Most companies will post their Quality Policy on their websites and within company
buildings as a visual reminder to employees, customers, and suppliers about their
commitment to quality.

▪ In ISO 9001:2015, Section 5.2 Quality Policy has two subclauses: 5.2.1 Establishing the
Quality Policy and 5.2.2 Communicating the Quality Policy.
Quality Policy
 Quality Policy Example

▪ We will consistently provide products and services that meet or exceed the requirements
and expectations of our customers..

▪ We fulfill our Mission to enable our customers to make the world healthier, cleaner, and
safer by continuously improving the quality of our products and services and by ensuring
global regulatory compliance.

▪ We drive a continuous improvement culture that is enabled by practical process

improvement (PPI) and our company’s quality system.
 Quality Objectives

• Quality objectives are measurable goals & targets established for the
value of services /products to enhance customer satisfaction and
should be consistent with the organization’s quality policy.
• It is a basic quality management process to establish at the corporate
level, relevant departments, processes and functions.
• Quality objectives are established at the planning stages of the
organization’s QMS and reviewed during management review
meetings, during an internal audit.
 Quality objective captured in clause 6.2 of ISO 9001:2015

The organization shall establish quality objectives at relevant levels

and processes needed for QMS. The quality objectives shall:
• be consistent with the quality policy;
• be measurable;
• be relevant to the customer satisfaction;
• be monitored;
• be communicated;
• be updated as appropriate
SMART FRAMEWORK
 SMART FRAMEWORK

• Specific - this means you need to clearly identify what it is you

want to achieve. For example, we want to increase our profit by
30% for the next financial year.
• Measurable - base line data is necessary to measure your
objective against. For example, measure our objective by
comparing it to the previous year’s profit. This helps us understand
whether we are ahead, behind, or on track.
 SMART FRAMEWORK

• Attainable - ask yourself ‘Is this objective achievable?’ and ‘Is it out of
reach?. Example, increasing our revenue by 30% is an attainable goal
as we achieved 5% growth in the previous financial year.
• Realistic - this is the section where many organizations go
wrong. It’s great to dream big but you need to do so realistically. But
at the same time, the objective needs to be challenging. Maintaining
a high growth rate of 30% will be challenging in terms of workload,
pressure, production and marketing.
 SMART FRAMEWORK

• Timely - objectives need to have a timeframe. Saying ‘we

will achieve profits by 30%’ is open-ended to the point of
being useless. To focus staff and resources you need to define
the time period that you will achieve this by. Is it over a quarter? Six
months? Annually?
 Quality Objectives

• Durability Objectives – these may relate to how many hours of use

a product will aim to perform for
• Defect Objectives – refers to the percentage of outputs that have
defects and therefore are non-conforming
• Timeliness Objectives – the percentage of products or services
that arrive at the time they said they would
• Availability Objectives – setting a target for how often your
product or service will be available
• Customer Service Objectives – these may relate to the number of
positive or negative reviews you get, therefore indicating the
customer satisfaction
 Leadership for QUALITY

• The role of leadership in quality management forms the

backbone of any improvement strategy.
• Leaders provide a unity of purpose, while also establishing the
direction of the organization.
• As such, the responsibility of leaders consists of creating and
maintaining the internal environment.
• In this environment, employees can become completely involved
in achieving the organization’s goals and aims.
• In this way, good leadership is essential to improve quality
across the organization, as the leading force that sets objectives
and assists employees to implement these objectives.
Leadership for QUALITY
 Effective ways to Improve Quality Management Leadership

• Be proactive: rather than dictating – true leaders lead in a way that

is active in implementing and following through on actions, rather than
simply dictating actions without leading by example.
• Understand and react to fluctuations in the external environment:
the external environment is every bit as important as the internal
environment, which is why leaders need to fully comprehend and
correctly react to various changes within this environment.
• Consider the stake holders inputs: from customers to owners,
employees, suppliers, local communities and the general public –
these stake holders form a vital part of the quality management
process and can greatly affect the organization’s success if there is no
relationship and understanding from a leadership point of view.
 Effective ways to Improve Quality Management Leadership

• Establish a clear view of the organization’s prospects: a clear view of

the organization’s future is essential in order to accurately plan, by
continuously changing goals and milestones in the future.
• Establish common values and ethical role models throughout the
organization: leaders instill a sense of values and ethics that are
entrenched in the organization’s mission statement, acting as role
models to inspire employees to be a part of quality management
initiatives based on these common values.
• Develop trust and eradicate fear: a good company relies on effective
leadership to develop trust across internal and external environments,
without the need to use fear as a motivating factor.
 Effective ways to Improve Quality Management Leadership
• Equip employees with the needed resources and freedom: with a well-
developed range of strategies that include all levels within the
organization, along with resources that equip employees to meet the
organization’s goals, the entire organization can be involved in improving
quality across the board.
• Inspire, motivate and recognize contributions from all levels of
employees – the ability to inspire and motivate staff across all levels
allows employees to be actively involved and invested in quality
management initiatives.
•Honest communication – communication is essential for all levels within
the organization to work together to implement improvement strategies,
and as leader, the role is to foster open communication from all
employees.
 Effective ways to Improve Quality Management Leadership
• Teach, train and coach employees: through learning and coaching on
various improvement strategies and other initiatives, employees are able
to grab a better understanding not only on what they are doing, but why
they are performing their tasks.
• Develop challenging objectives and targets: through goal setting,
leaders can foster constant growth and development across the
organisation, by continually improving the standards of goals within each
department.
Essential leadership qualities
Essential leadership qualities
Essential leadership qualities
Essential leadership qualities
Essential leadership qualities
Essential leadership qualities
 Quality Culture

• Quality culture is a working behavior or collection of behaviors

encompassing every employee within a company.
• It is a way of working where employees strive for the best at every level.
Having a strong structure in place is essential for creating quality culture.
Being flexible within that structure is equally important.
• Creating quality culture within your organization is a great way to enhance
any business. Quality culture helps to make employees feel happier in
their work and to feel more like an integral part of the company. It can
drive performance, improve results, and create a better working
environment.
• Most importantly, quality culture can have a direct impact on customer
satisfaction. That’s something that all business leaders should fully
understand.
 7 ways to create quality culture in organization

1. Establish a system that promotes quality culture

• At the heart of any successful organization is a strong and clear
structure. Company processes should be easy to understand and
applicable across different departments. A strong governance will
help to establish a quality culture. A flat hierarchy helps to empower
employees and drive quality initiatives.
• To establish a quality culture, some initial research is required.
Carrying out performance analyses can help to identify any areas of
strengths and weaknesses. Data can then be analyzed and reported
upon to be used to improve the system. Carefully collated data can
be a strong tool to improve performance and create quality culture.
 7 ways to create quality culture in organization

2. Lead by example
• A dedicated leadership team can be instrumental in creating quality
culture. When a company leader is engaged, supportive, and
dedicated to their staff, these qualities will be passed down and
emulated by their team members. Proactive leadership is often cited
as the most effective way of creating a sustainable quality culture.
• A good leader will clearly articulate a company’s vision. They will
seek to empower their workers through incentivization and people
development. Any new employees will be quickly and
comprehensively immersed into a company’s culture so that they are
immediately part of the system. The quality culture will then become
an organic part of the company as it grows and develops.
 7 ways to create quality culture in organization

3. Focus on customer centricity

• Your customers should be at the center of any company decisions. Your
customers, after all, are your raison d’être. Routine activities should be
carried out with a focus on customer satisfaction by all employees. All
employees within an organization should also believe that customer
centricity is an unwritten law within the company structure.
• Understanding what a customer wants involves running functional tests to
ensure that your products are as user-friendly as possible. Functional
testing will often involve many members of your team. It can also include
customer interaction in the form of surveys, questionnaires, and even
promotional product testing using virtual reality interfaces. A truly
customer-centric company will seek to exceed customer expectations to
garner new customers.
 7 ways to create quality culture in organization

4. Encourage collaboration
• Workplace collaboration can help to strengthen quality culture across an
organization. Regular cross-functional working is a great way to generate
ideas through brainstorming sessions and working groups. Inter-
departmental working has been proven to boost team morale and solidify
a company’s culture by creating a unified vision.
• Team leaders are instrumental in encouraging and developing workplace
collaboration. Project leads must always be willing to share knowledge
and promote learning across a company. They should also have a
shared set of values which they apply to all areas of the business to help
to nurture quality culture.
 7 ways to create quality culture in organization

5. Strive for continual development

• An organization is a constantly evolving entity. It should be adaptable,
flexible, and ready to embrace change. This commitment to continual
development should seep down into every area of the business.
Employees should be encouraged by management to “think outside the
box.” Senior employees should strive to create a culture where creativity
is rewarded, and success is continuously developing.
• Examples of continual development include embracing new ways of
working and new technologies. If a company has been using a traditional
CMS to manage its website, but would like a more collective approach, it
may wish to try a headless CMS. A headless CMS will allow a company to
create an omnichannel experience, which could help to improve business
development through enhanced customer experience.
 Cross-Functional Teams
• Cross functional teams are groups of people from various departments in
an organization—such as marketing, product development, quality
assurance, sales and finance—who work together to achieve a common
goal.
• Many companies have ineffective CFTs. Harvard Business Review found
that 75% of CFTs are dysfunctional, failing in at least three of five
criteria:
1. Meeting a planned budget
2. Staying on schedule
3. Adhering to specifications
4. Meeting customer expectations
5. Alignment with the company’s corporate goals
 Cross-Functional Teams

• Cross functional teams help organizations put their customers first, by

encouraging effective communication across teams.
• Bringing people together with different perspectives can improve problem
solving and lead to smarter, more sustainable decision making.
• Instead of competing for resources, cross functional teams collaborate to
optimize use of time, money, and effort to improve customer satisfaction
while helping to meet organizational goals.
 Cross-Functional Teams

Factors affecting cross-functional teams to succeed:

• Team members must be open-minded and highly motivated.
• Team members must come from the correct functional areas.
• A strong team leader with excellent communication skills and a position
of authority is needed.
• The team must have both the authority and the accountability to
accomplish the mission it has been given.
• Management must provide adequate resources and support for the team,
both moral and financial.
• Adequate communications must exist.
 Cross-Functional Teams

The advantages of cross functional teams can include:

• High-level insight
• Innovation and experimentation
• Learn new tools
• Foster stronger work relationships
• Alignment to the company goals & mission
 Cross-Functional Teams

Where Should CFTs Be Used in Quality

1. New Product Introduction (NPI) Projects

2. Risk Management and Failure Mode Effects Analysis (FMEA)
3. Corrective Action Requests
4. Continuous Improvement
5. Innovation
 Cross-Functional Teams

Steps to improve cross-functional team collaboration:

1. Have regular meetings to review the progress of each team’s tasks.

2. Hold a meeting to discuss the vision and mission of the company, then have
each department do an update on their progress each month to ensure they’re
aligned with the company’s overall goals.
3. Set up weekly meetings to keep the communication open.
4. If a key task is not completed by the deadline, educate your employees on how
to manage time and tasks better to meet deadlines in the future.
5. Create a “”collaboration binder”” for every employee in your company so
everyone can easily access the other departments and how it positively
impacts their work.
6. Create a personal development plan for each employee so they know how they
can continuously improve their work and advance within your organization.
 Importance of Cross-Functional Teams

Improved coordination across functional areas

• In many organizations, coordination (or lack thereof) between marketing, sales, and
product teams can make or break the business. Often, this is an issue of conflicting
interests: If marketing is focused on landing enterprise customers to drive
sustainable growth, while sales reps are motivated to win small sales quickly, the
product team can’t create a product that will meet the needs of all of its customers.
• Cross functional teams can help teams stay focused on corporate goals, so if the
organization is trying to position itself as an enterprise tool, marketers can work
with sales reps to identify ways to effectively market to enterprise executives. The
product team can use insights gathered from sales performance and marketing
research to prioritize features most valued by their target customer. A cross
functional team of marketing, sales, product, and customer success representatives
can work together on assigned accounts to provide enterprise customers with a
customized, cohesive customer experience.
 Importance of Cross-Functional Teams
Increased innovation in process and product
• When organizations operate in silos, it’s difficult to identify and implement
improvements across the value stream. Cross functional teams can work to
identify best practices for different processes, then cross-train other cross
functional groups to promote cohesion and efficiency across the organization.
Working together to find solutions for common problems, cross functional teams
can find more innovative, more comprehensive solutions than each functional
group could develop on its own.
• Cross functional teams don’t only promote process innovation; they also
promote more innovative products. Imagine if every product decision your
company made included insights gleaned from marketing campaign data, UX
focus groups, sales conversations, product usage data, and other rich sources of
customer information from across the company. This is the power of cross
functional teams – creating a forum where learnings from across the company
can inform smarter decision making.
 Importance of Cross-Functional Teams

Reducing cycle times

• Think again of the phone call example above, where a simple request
took 20 minutes to resolve, not because of the complexity of the request,
but because of the inefficiency of the company trying to resolve it.
• Cross functional teams help organizations identify their inefficiencies,
while improving their ability to find solutions that work. In this way, using
cross functional teams can drastically reduce cycle times for any
recurring pain point.
• So instead of passing a customer request from silo to silo, the team can
work together to resolve the request as quickly as possible, providing a
far better customer experience. This is true of something small, like a
customer request, as well as far larger projects, such as developing a new
feature to meet customer demands.
Assignment
Topic • Explain the relationship between customer and
supplier in any organization?
Thank You