PDF Modul Latihan Berasaskan

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MODUL LATIHAN BERASASKAN INDUSTRI 1 (IBL 1)

FK40112 SEMESTER 1 SESI 2021/2022

PROGRAM

TEKNOLOGI DAN INDUSTRI KAYU

FAKLUTI PERHUTANAN TROPIKA

UNIVERSITI MALAYSIA SABAH

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1 MODUL IBL 1

Program Teknologi dan Industri Kayu Fakulti Perhutanan Tropika

1.0 SINOPSIS KURSUS

NAMA KURSUS : LATIHAN BERASASKAN INDUSTRI (INDUSTRIAL BASED LEARING 1-IBL 1) KOD KURSUS : FK40112

JAM KREDIT : DUA BELAS (12)

Kursus ini memberikan pengetahuan pengurusan operasi yang komprehensif yang merangkumi konsep, prinsip, sistem, strategi, sumber manusia / tenaga kerja, pengurusan kewangan, perakaunan, hubungan industri, pemasaran, penyelidikan dan pembangunan, inovasi dalam produk kayu, bahan mentah, pengurusan kualiti, penyelenggaraan dan pengurusan gudang. Kursus ini pada dasarnya mengajar pelajar pengurusan yang cekap untuk mengubah input menjadi output mengikut spesifikasi pelanggan. Kursus ini juga menekankan pada kemahiran pengurusan, kemahiran insaniah, pengembangan pemikiran analitik dan inovatif pelajar. Dalam kursus ini, pelajar akan diberi penerangan dan pengajaran mengenai sistem pengurusan keseluruhan syarikat yang terpilih dan akan dilatih mengenai sistem / tugas pengurusan di setiap bahagian / jabatan. Dalam kursus ini, pelajar akan ditempatkan, seperti dijadualkan, di semua bahagian / jabatan di syarikat untuk menjalani latihan praktik pengurusan secara langsung. Pelajar akan diberi tugas biasa sebagai tugas pekerja, dan setelah setiap tugas setiap bahagian, pelajar mesti menyediakan laporan praktikal (laporan individu / kumpulan) untuk tujuan penilaian. Pelajar juga akan diberi tugasan / projek mini (kerja individu / berkumpulan) yang berkaitan dengan idea inovatif mengenai pengurusan atau reka bentuk inovatif produk kayu atau seperti yang disarankan oleh penyelia. Pada akhir kursus, pelajar boleh mengemukakan idea / reka bentuk / hasil tugasan mereka dan menyerahkan tugasan bertulis untuk tujuan penilaian. Pengetahuan keseluruhan pelajar mengenai amalan pengurusan syarikat akan dinilai dalam peperiksaan yang disediakan oleh penyelia.

2.0 HASIL PEMBELAJARAN

2.1 Menunjukkan kemampuan komunikasi, kepemimpinan dan kerja berpasukan dalam pengurusan industri berasaskan kayu termasuk:-

i. Kemahiran Interpersonal, ii. Kemahiran Berkomunikasi, dan,

iii. Kepimpinan, Autonomi serta Tanggungjawab

2.2 Mengamalkan etika kerja yang baik terhadap persekitaran kerja yang sebenarnya yang merangkumi Etika dan Profesionalisme.

2.3 Membina konsep inovatif atau reka bentuk produk kayu dalam Kemahiran Praktikal yang berkaitan dengan industri berasaskan kayu

2.4 Mengatur pengambilan dan pengurusan maklumat mengenai pekerjaan untuk pembelajaran sepanjang hayat yang khusus dalam Kemahiran Digital dan Kemahiran Peribadi.

3.0 KANDUNGAN KURSUS

Subtopik kandungan kursus Industrial Based Learning 1 (IBL 1) adalah seperti berikut : 3.1 Pengurusan 1: Pengurusan Operasi Organisasi dan Sumber Manusia (Minggu 1-4) 3.2 Pengurusan 2: Pengurusan Kewangan, Perakaunan dan Pemasaran (Minggu 5-8) 3.3 Pengurusan 3: Perhubungan Industri (Minggu 9-12)

3.4 Pemprosesan Pembangunan Produk (Minggu 13-18)

3.5 Pembangunan Produk dan Pengurusan Kualiti (Minggu 19-24)

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4.0 KEHADIRAN PELAJAR

Sepanjang tempoh pelaksanaan IBL 1, kehadiran pelajar yang berdaftar adalah 100% dan tertakluk di bawah pengurusan organisasi atau syarikat industri.

5.0 TEMPOH LATIHAN BERASASKAN INDUSTRI

Tempoh IBL 1 adalah selama 6 bulan (24 Minggu) iaitu bermula pada 4 Oktober 2021 sehingga 14 Mac 2022.

6.0 PENYELARAS KURSUS

Nama Pensyarah: EN. JANSHAH BIN MOKTAR

BILIK 31 ARAS 2, FAKULTI PERHUTANAN TROPIKA UNIVERSITI MALAYSIA SABAH, JLN. UMS

88400 KOTA KINABALU SABAH

No.Telefon Bimbit: 013-5563791

E-mel : [email protected]

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3 P ENGURUSAN 1: P ENGURUSAN

O PERASI O RGANISASI DAN S UMBER

M ANUSIA

: M INGGU 1-4

DISEDIAKAN OLEH: DR. ISMAWATI BINTI PALLE

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4 HUMAN RESOURCE MANAGEMENT

Human resources is vital to organizations which refers to both the people who work for a company or organization and the department in charge of handling all employee-related issues. Whereas, human resource management (HRM) is refers to how a business manages and develops its people.

Human resource management is responsible for controlling all aspects of an organization's human capital management. Therefore, HRM’s focused on a number of major areas including:

➢ Recruiting and staffing

➢ Compensation and benefits

➢ Training and development

➢ Employer and labor relations

➢ Organizational development

➢ Human resource compliance

HRM also engages developing and administering programs that are aimed to increase the efficiency of an organizations. It includes the formation, administration, and cultivation of the employer- employee relationship.

This part of IBL’s will enable students to obtain exposure on human resource management in related industry consequently able to enhance the capabilities of graduates in the human resource management specifically in wood based industry

References

1. Bauer, T., Erdogan, B., Caughlin, D.E. and Truxillo, D.M. 2021. Fundamentals of Human Resource Management: People, Data, and Analytics. 1

^st

eds. SAGE Publications Ltd 2. Dessler, G. 2019. Human Resource Management. 16

^th

eds. New York, Pearson

3. Guenole, N., Ferrar, J, and Feizig, S. 2017. The Power of People: Learn How Successful Organizations Use Workforce Analytics to Improve Business Performance. 1st eds. Pearson 4. Wilton, N. 2019. An Introduction to Human Resource Management. 4

^th

Eds. SAGE Publications

Ltd

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5 P ENGURUSAN 2: P ENGURUSAN

K EWANGAN , P ERAKAUNAN DAN

P EMASARAN

: M INGGU 5-8

DISEDIAKAN OLEH: PN. ROZEILA HANIM ALAMJURI & PN. MELISSA SHARMA GILBERT

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6 PENGURUSAN 2: PENGURUSAN KEWANGAN DAN PERAKAUNAN

1. Kemahiran mengurus

a. Pengurusan masa (proses merancang dan melaksanakan kawalan masa yang digunakan untuk sesuatu aktiviti, terutamanya untuk meningkatkan keberkesanan, kecekapan atau produktiviti)

b. Membuat keputusan (Proses pemilihan kepercayaan atau Tindakan yang perlu daripada beberapa kebarangkalian alternatif)

c. organisasi idea (Menyatakan idea dengan jelas, koheran dan tersusun/teratur.

d. agihan kerja(Agihan tanggungjawab dan kuasa jepada suatu kumpulan untuk melaksanakan aktiviti-aktiviti)

e. motivasi (Bermotivasi dan mendorong rakan-rakan lain untuk menyiapkan setiap tugasan dan aktiviti)

2. Minda keusahawanan

a. Visi (mempunyai wawasan berinovasi bagi menyelesaikan masalah dunia sebenar.

b. Jaringan (mempunyai kesedaran bahawa bagi menjadi seorang usahawan

seseorang memerlukan hubungan keusahawanan melalui pembentukan pasukan, intergriti peribadi, komunikasi dan tawaran yang baik)

c. Keterujaan (mempunyai perasaan seronok atau suka dalam menjalankan sktiviti bidang keusahawanan)

3. Kemahiran keusahawanan

a. Pengalaman keusahawanan (Pembelajaran yang diperolehi melalui penglibatan dalam aktiviti keusahawanan)

b. Pengenalpastian peluang keusahawanan (proses mencari peluang melaksanakan idea keusahawanan mengikut strategi yang telah dirancang hasil daripada kreativiti ialah proses mengumpul menjana idea-idea baharu dan inovasi dalam

mengaplikasikan idea kepada amalan)

c. Toleransi resiko (Sikap dan kesedianan usahawan dalam mengenal pasti dan mengambil langkah menghadapi resiko)

d. Lokus kawalan dalaman (Sikap percaya bahawa asas kejayaan adalah terletak pada kerja sendiri dan mampu mengawal kehidupan)

e. Pencapaian dan ketabahan (Keupayaan meletakkan sasaran yang lebih tinggi dan juga ketabahan dalam menghadapi cabaran)

f. Pengurusan kewangan (keupayaan untuk mengendali komponen kewangan dan sumber)

4. Pengurusan kewangan

Mengendali, mengelola dan mengenalpasti keperluan Latihan, kursus, ceramah seminar,

dan bengkel untuk pegawai dan kakitangan untuk memperkayakan kemahiran dan

pengetahuan dalam bidang berkaitan.

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7 MANAGEMENT 2: MARKETING

INTRODUCTION

The main decider for a profitable manufacturing firm is the sales through marketing. Marketing of the products is not just about selling or pushing the products to potential consumers in the hopes of one eventually buys. Marketing is a lot more complex than selling, where it needs to identify and understand customer needs and giving them what they want. It covers the entire organization efforts including research, planning, pricing, promotion, selling and distribution. The components of a successful marketing concept include customer satisfaction, profitable selling volume, and integrated marketing.

MALAYSIA’S MAJOR TIMBER PRODUCTS

Malaysia in one of the largest exporters of tropical timber in the world, establishing itself as a

major producer of mostly primary wood products such as sawn timber and joineries. Based on

Figure 1 of Malaysia’s Major Timber Products 2020 from the Malaysian Timber Industry Board

(MTIB), there are five (5) major timber products that includes wooden furniture, plywood, sawn

timber, fiberboard, and builder’s joinery and carpentry. However, there is a decrease of export of

timber products in almost all major products except for wooden furniture with RM10,524.9 millions

of exports, most probably due to the pandemic.

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8 Figure 1: Malaysia’s Major Timber Products 2020

Source: Anon, 2021

MARKETING FUNCTIONS

Marketing has a number of functions which follows the product from the producer to the satisfied hands of the consumer. It requires a lot of market research on the consumer behaviour of the potential buyer, with their needs, preferences, and buying capacities are kept in mind, among others. The market function includes;

a. Distribution b. Financing

c. Market-Information Management d. Pricing

e. Product and Service Management f. Promotion

g. Selling MARKETING MIX

Marketing mix is known as the foundation model of businesses, where it is also known as the four (4) Ps. It consists of:

a. Product

Referring to the item or services offered from the firm to be made available to purchase based on the consumers’ needs or wants. Product design and function plays a big part in persuading a purchase, therefore, is one of the main marketing foci. For the forest product industry, examples of primary timber products include sawn timbers, veneer and plywood, particleboard and medium density fiberboard (MDF), meanwhile the secondary processed wood product includes the value-added laminated beams, furniture, and solid doors.

b. Price

The amount of money a customer pays for a product. There are many factors in setting the price, which includes the cost of the product, economic conditions, customer needs and characteristics, competition, as well as the firm’s objectives. Eventually it is the ultimate decider for purchase, as the price should be worthy of the value of the product. Meanwhile the pricing objectives sets the pricing strategy of the product, where the most common objective is based on either to profit through selling more in volume (sales maximization) or higher price (profit maximization).

c. Place (Distribution)

The main objective for distribution is to allow the product to reach its potential customer.

Distribution may cover the medium of transportation for the product to retails mostly, but

it also focuses on the marketing channel. Marketing channel are intermediaries used by

producers to bring their products to the market. The marketing channel includes direct,

retailer, wholesaler, and agent/broker channel such as in Figure 2.

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9 Figure 2: Marketing Channel for Consumer Products

d. Promotion

Promotion is a type of communication by marketers to inform, remind and persuades potential consumers to purchase the firm’s product. The promotional mix includes a set of promotion tools such as advertising, trade fairs, and direct mail to position the brand or product in our daily life. There are two (2) types of promotion, which is the above-the-line and below-the-line promotion, where the former focuses on the purchasing communication with consumer through advertising, and the latter on short-term incentives such as coupons and loyalty cards. A combination of both has shown promising brand positioning and brand loyalty.

NEW NORMAL ADAPTATION

With the current coronavirus pandemic, a number of activities are either halted or improvised to complement the new normal. This heavily impacts the marketing pursuit as most potential consumers are less likely to leave the house for fear of infection. Therefore, a number of adaptation could be implemented in order to maintain the market shares by shifting most of the marketing activities online. Examples of this includes the utilization of e-marketing platform such as Shopee and Lazada to display the firm’s products to reach the mostly stay-at-home potential buyers. Above-the-line promotion could also cater to the ever-growing social media enthusiasts with paid advertisements in between videos in YouTube or demographically targeted potential customers in Facebook and Instagram. On top of it all, purchase payment could also be done online.

REFERENCES

1. Anon. 2021. Timber Export Statistic . Malaysian Timber Industry Board (MTIB).

2. Hill, C. W. L. 2019. International Business: Competing in the Global Marketplace.

McGraw-Hill Education: United States.

3. Baker, M. J. & Hart, S. 2016. The Marketing Book. Routledge: United Kingdom.

4. Strauss, J. & Frost, R. 2016. E-marketing. Routledge: United States.

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10 P ENGURUSAN 3: P ERHUBUNGAN I NDUSTRI

: M INGGU 9-12

DISEDIAKAN OLEH: EN.JANSHAH MOKTAR

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11 INDUSTRIAL RELATION

Industrial relations is basically a process in which communication, consulting consultants are built and negotiated and supported by the high capacity and commitment of all elements in the company. Industrial relations have the purpose that in the process of interacting within the company creates a supportive environment between the workers and the elements within the company. Industrial relations basically emphasize the rights and obligations between workers and employers. The rights and responsibilities of the individual then develop into collective rights and responsibilities. This collective nature is then used as a means of providing protection for workers to receive good service and to obtain their rights. Assigning rights and responsibilities to the parties involved in the collective production process is the essence of the industrial relationship. The most basic relationship occurs at the enterprise level.

This topic gives an introduction, the concept and value of industrial communications within

the organization and discuss about the establishment / development of industrial relations

related to the unity of workers, strategies and processes in industrial relations between

employers and workers. This topic will discuss about the definition, formation, structure,

characteristics, functions, and purposes of the unity of labor regulation, and explain the

contribution of union workers in the management of the organization. The topic also

touches on the process, rules and approaches in the industrial relation relating to the

peace talks and makes decisions collectively, solving squabble and dispute resolution, court

procedures and actions based on rules. The topic also discusses about the causes of

friction within the organization, for example, payment of salaries / wages, discipline,

dissatisfaction to the terms of work and tasks in the work. In addition, this course also

emphasizes on the influence of these factors, for example, economic, social, political and

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12 government function that sets the rules and laws of the market, employment, and justice.

Students will be given a case study as an exposure and the student can better understand and analyze the process and cases in the industrial relation.

REFERENCES

1. Aminudin, M. 2016. Malaysian Industrial Realtion & Employment Law. McGraw-Hill.

2. Bogg, A. & Novitz, T. (eds.) 2014. Voices at Work: Continuity and Change in the Common Law World. Oxford University Press.

3. Chen, Voon Shian. 2007. Industrial Relations Skills for Managers: Featuring Employment Laws, Trade Unions and Industrial relations. CCH Asia Pte Limited.

Singapore.

4. Colling, T. & Terry, M. (eds.). 2010. Industrial Relations: Theory & Practice. 3rd ed.

Wiley-Blackwell. West Sussex. 608pp.

5. Kelly, M.A. 2007. Labor and Industrial Relations: Terms, Laws, Court Decisions, and Arbitration Standards. Johns Hopkins University Press.

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13 P EMPROSESAN

P EMBANGUNAN

P RODUK

:M INGGU 13-18

DISEDIAKAN OLEH: PROF. MADYA TS. DR. LIEW KANG CHIANG

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14 PRODUCT PROCESSING

Objectives:

1. Able to apply the methods and techniques for wood processing.

2. Able to explain and maintenance of equipment used in wood processing.

3. Able to plan product processing

Topics:

1. Timber machining 2. Timber grading

3. Component measurement 4. Component assembling 5. Product sanding

6. Product finishing 7. Machine maintenance 8. Product quality control 9. Waste management

References:

1. Anon. 2010. Wood Handbook: Wood as an Engineering Material. USDA Forest Service. Madison.

2. Bowyer, J.L., R. Shmulsky & J.G. Haygreen. 2007. Forest Products and Wood Science: An Introduction. 5th edition. Blackwell Pub.

3. Csanády, E. and Magoss, E. 2013. Mechanics of Wood Machining. Springer. 202pp.

4. Davim, J. P. 2011. Wood Machining. Wiley-ISTE. 288pp.

5. Hough, R.B. and Sargent, C.S. 2007. The Woodbook. Taschen GmbH. Cologne.

6. Walker, J.C.F. 2009. Primary Wood Processing: Principles and Practice. 2nd

edition. Springer. Netherlands.

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15 P EMBANGUNAN

P RODUK DAN

P ENGURUSAN

K UALITI

:M INGGU 19-24

DISEDIAKAN OLEH: PN. SHIRLEY MARYLINDA BAKANSING

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16 Introduction

Aim

This quality management course is essential for student to learn fundamental knowledge as well as practical skills, to understand the principles to manage an organization/company and the operation management to maintain a good and continuous improvement of the management. This course aims to provide students with lifelong learning practical skill, thus to provide them opportunity to apply the principles in the working environment.

Objectives

Through this course students will be able to apply their knowledge and practical skill, as well as acquire lifelong learning skill in quality management (and total quality management) in their working environment.

Contents of Module

This module contains:

1. Lecture notes 2. Instructions 3. Learning Exercise

Definition

Quality management (QM) is the act of overseeing all activities and tasks needed to maintain a desired level of excellence. Quality management includes the determination of a quality policy, creating and implementing quality planning and assurance, and quality control and quality improvement.

Quality Management according to ISO

The ISO 9000 family of quality management systems (QMS) is a set of standards that helps organizations ensure they meet customer and other stakeholder needs within statutory and regulatory requirements related to a product or service.

Quality definition according to ISO

"The totality of features and characteristics of a product or service that bear on its ability to satisfy stated or implied needs".

Total Quality Management (TQM)

Total Quality Management (TQM) is a management framework based on the belief that an organization can build long-term success by having all its members, from low-level workers to its highest ranking executives, focus on improving quality and, thus, delivering customer satisfaction.

TQM requires organizations to focus on continuous improvement, or kaizen. It focuses on process improvements over the long term, rather than simply emphasizing short-term financial gains.

Importance of Quality Management

“Quality management” ensures superior quality products and services. Quality of a product can be measured in terms of performance, reliability and durability. Quality is a crucial parameter which differentiates an organization from its competitors. Quality management tools ensure changes in the systems and

QUALITY MANAGEMENT AND TOTAL QUALITY MANAGEMENT

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processes which eventually result in superior quality products and services. Quality management methods such as Total Quality management or Six Sigma have a common goal - to deliver a high quality product.

Quality management is essential to create superior quality products which not only meet but also exceed customer satisfaction. Customers need to be satisfied with the brand. Business marketers are successful only when they emphasize on quality rather than quantity. Quality products ensure that the company survive the competition with satisfaction.

*Six Sigma is a quality-control methodology developed in 1986 by Motorola, Inc. Six Sigma emphasizes cycle-time improvement while at the same time reducing manufacturing defects to a level of no more than 3.4 occurrences per million units or events.

Quality management is essential for customer satisfaction which eventually leads to customer loyalty. It is important for every business to have some loyal customers who would come back to the organization for the products or services.

(Source: Prachi Juneja. https://www.managementstudyguide.com/importance-of-quality-management.htm)

Importance and Benefits of Total Quality Management

TQM can have an important and beneficial effect on employee and organizational development. By having all employees focus on quality management and continuous improvement, companies can establish and uphold cultural values that create long-term success to both customers and the organization itself.

Who are the key players in TQM?

The Key Players in Total Quality Management: Customers, Suppliers, and Employees. To achieve success with a total quality management program or any other improvement methodology, managers must understand the quality goals for their product or company.

Management and Application of QM/TQM in management

Top management should act as the main driver for TQM and create an environment that ensures its success.

Training: Employees should receive regular training on the methods and concepts of quality. Customer Focus: Improvements in quality should improve customer satisfaction.

Total quality management uses a PDCA cycle (Plan, Do, Check, Act) for continuous control and improvement of business outcomes.

Strategies of Approach to Quality Management

Five (5) Strategies to Improve the Approach to Quality Management:

1. Build a company culture that emphasizes quality improvement.

2. Design a robust training program.

3. Develop a detailed quality inspection program.

4. Ensure that equipment is regularly maintained.

5. Schedule periodic internal audits.

Who are the founders of Total Quality Management (TQM)?

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18 QUALITY MANAGEMENT PRINCIPLES

TQM was developed by William Edward Deming, a management consultant whose work had a great impact on Japanese manufacturing in 1950’s. W. Edwards Deming taught the methods of using statistical analysis and control of quality to Japanese engineers and executives. This is the origin of TQM. W. Edwards Deming was joint by Armand V. Feigenbaum and Joseph M. Juran to develop the TQM concept. The universal management framework they developed had provided benefits to all kinds of businesses and for everybody involved (the organization, its employees and the customers/clients).

These notes introduce seven quality management principles (QMPs). ISO 9000, ISO 9001 and related ISO quality management standards are based on these seven QMPs.

(Source: E-book Quality Management: Principles. By ISO.

https://www.iso.org/files/live/sites/isoorg/files/store/en/PUB100080.pdf)

One of the definitions of a “principle” is that it is a basic belief, theory or rule that has a major influence on the way in which something is done. “Quality management principles” are a set of fundamental beliefs, norms, rules and values that are accepted as true and can be used as a basis for quality management.

The QMPs can be used as a foundation to guide an organization’s performance improvement. They were developed and updated by international experts of ISO, which is responsible for developing and maintaining ISO’s quality management standards.

These notes provide the information for each QMP.

• Statement: Description of the principle

• Rationale: Explanation of why the principle is important for the organization

• Key benefits: Examples of benefits associated with the principle

• Actions that can be applied: Examples of typical actions to improve the organization’s performance when applying the principle

The seven (7) Quality Management Principles (QMP) are:

QMP 1 Customer focus

QMP 2 Leadership

QMP 3 Engagement of people

QMP 4 Process approach

QMP 5 Improvement

QMP 6 Evidence-based decision making

QMP 7 Relationship management

These principles are not listed in priority order. The relative importance of each principle will vary from organization to organization and can be expected to change over time.

Quality Management Principle 1

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19 Customer Focus

1. Statement

The primary focus of quality management is to meet customer requirements and to strive to exceed customer expectations.

2. Rationale

Sustained success is achieved when an organization attracts and retains the confidence of customers and other interested parties. Every aspect of customer interaction provides an opportunity to create more value for the customer.

Understanding current and future needs of customers and other interested parties contributes to sustained success of the organization.

3. Key benefits

• Increased customer value

• Increased customer satisfaction

• Improved customer loyalty

• Enhanced repeat business

•Enhanced reputation of the organization

• Expanded customer base

• Increased revenue and market share.

4. Action that can be applied

• Recognize direct and indirect customers as those who receive value from the organization.

• Understand customers’ current and future needs and expectations.

• Link the organization’s objectives to customer needs and expectations.

• Communicate customer needs and expectations throughout the organization.

• Plan, design, develop, produce, deliver and support goods and services to meet customer needs and expectations.

• Measure and monitor customer satisfaction and take appropriate actions.

• Determine and take actions on interested parties’ needs and expectations that can affect customer satisfaction.

• Actively manage relationships with customers to achieve sustained success.

Quality Management Principle 2 Leadership

1. Statement

Leaders at all levels establish unity of purpose and direction and create conditions in which people are engaged in achieving the organization’s quality objectives.

2. Rationale

Creation of unity of purpose and direction and engagement of people enable an organization to align its strategies, policies, processes and resources to achieve its objectives

3. Key benefits 4. Actions that can be applied

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• Increased effectiveness and efficiency in meeting the organization’s quality objectives.

• Better coordination of the organization’s processes.

• Improved communication between levels and functions of the organization.

• Development and improvement of the capability of the organization and its people to deliver desired results.

• Communicate the organization’s mission, vision, strategy, policies and processes throughout the organization.

• Create and sustain shared values, fairness and ethical models for behaviour at all levels of the organization.

• Establish a culture of trust and integrity.

• Encourage an organization-wide commitment to quality.

• Ensure that leaders at all levels are positive examples to people in the organization.

• Provide people with the required resources, training and authority to act with accountability.

• Inspire, encourage and recognize people’s contribution.

Quality Management Principle 3 Engagement of People

1. Statement

Competent, empowered and engaged people at all levels throughout the organization are essential to enhance its capability to create and deliver value.

2. Rationale

To manage an organization effectively and efficiently, it is important to involve all people at all levels and to respect them as individuals. Recognition, empowerment and enhancement of competence facilitate the engagement of people in achieving the organization’s quality objectives.

3. Key benefits

• Improved understanding of the organization’s quality objectives by people in the organization and increased motivation to achieve them.

• Enhanced involvement of people in improvement activities.

• Enhanced personal development, initiatives and creativity.

• Enhanced people satisfaction

• Enhanced trust and collaboration throughout the organization.

• Increased attention to shared values and culture throughout the organization.

4. Actions that can be applied

• Communicate with people to promote understanding of the importance of their individual contribution.

• Promote collaboration throughout the organization.

• Facilitate open discussion and sharing of knowledge and experience.

• Empower people to determine constraints to performance and to take initiatives without fear.

• Recognize and acknowledge people’s contribution, learning and improvement.

• Enable self-evaluation of performance against personal objectives.

• Conduct surveys to assess people’s satisfaction, communicate the results, and take appropriate actions.

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21 Quality Management Principle 4 Process Approach

1. Statement

Consistent and predictable results are achieved more effectively and efficiently when activities are understood and managed as interrelated processes that function as a coherent system.

2. Rationale

The quality management system consists of interrelated processes. Understanding how results are produced by this system enables an organization to optimize the system and its performance.

3. Key benefits

• Enhanced ability to focus effort on key processes and opportunities for improvement

• Consistent and predictable outcomes through a system of aligned processes

• Optimized performance through effective process management, efficient use of resources, and reduced cross-functional barriers

• Enabling the organization to provide confidence to interested parties as to its consistency, effectiveness and efficiency.

• Define objectives of the system and processes necessary to achieve them.

• Establish authority, responsibility and accountability for managing processes.

• Understand the organization’s capabilities and determine resource constraints prior to action.

• Determine process interdependencies and analyse the effect of modifications to individual processes on the system as a whole.

• Manage processes and their interrelations as a system to achieve the organization’s quality objectives effectively and efficiently.

• Ensure the necessary information is available to operate and improve the processes and to monitor, analyse and evaluate the performance of the overall system.

• Manage risks that can affect outputs of the processes and overall outcomes of the quality management system.

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22 Quality Management Principle 5 Improvement

1. Statement

Successful organizations have an ongoing focus on improvement.

2. Rationale

Improvement is essential for an organization to maintain current levels of performance, to react to changes in its internal and external conditions and to create new opportunities.

3. Key benefits

• Improved process performance, organizational capabilities and customer satisfaction.

• Enhanced focus on root-cause investigation and determination, followed by prevention and corrective actions.

• Enhanced ability to anticipate and react to internal and external risks and opportunities.

• Enhanced consideration of both incremental and breakthrough improvement.

• Improved use of learning for improvement.

• Enhanced drive for innovation.

• Promote establishment of improvement objectives at all levels of the organization.

• Educate and train people at all levels on how to apply basic tools and methodologies to achieve improvement objectives.

• Ensure people are competent to successfully promote and complete improvement projects.

• Develop and deploy processes to implement improvement projects throughout the organization.

• Track, review and audit the planning, implementation, completion and results of improvement projects.

• Integrate improvement considerations into the development of new or modified goods, services and processes.

• Recognize and acknowledge improvement.

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23 Quality Management Principle 6 Evidence-based Decision Making

1. Statement

Decisions based on the analysis and evaluation of data and information are more likely to produce desired results.

2. Rationale

Decision making can be a complex process, and it always involves some uncertainty. It often involves multiple types and sources of inputs, as well as their interpretation, which can be subjective. It is important to understand cause-and-effect relationships and potential unintended consequences. Facts, evidence and data analysis lead to greater objectivity and confidence in decision making.

3. Key benefits

• Improved decision-making processes.

• Improved assessment of process performance and ability to achieve objectives.

• Improved operational effectiveness and efficiency.

• Increased ability to review, challenge and change opinions and decisions.

• Increased ability to demonstrate the effectiveness of past decisions.

• Determine, measure and monitor key indicators to demonstrate the organization’s performance.

• Make all data needed available to the relevant people.

• Ensure that data and information are sufficiently accurate, reliable and secure.

• Analyse and evaluate data and information using suitable methods.

• Ensure people are competent to analyse and evaluate data as needed.

• Make decisions and take actions based on evidence, balanced with experience and intuition.

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24 TOTAL QUALITY MANAGEMENT

TQM is a management philosophy that seeks to integrate all organizational functions (marketing, finance, design, engineering, and production, customer service, etc.) to focus on meeting customer needs and organizational objectives.

In total quality management a PDCA cycle (Plan, Do, Check, Act) method is used for continuous control and improvement of business outcomes.

TQM views an organization as a collection of processes. It maintains that organizations must strive to continuously improve these processes by incorporating the knowledge and experiences of workers. The simple objective of TQM is “Do the right things, right the first time, every time.” TQM is infinitely variable and adaptable. Although originally applied to manufacturing operations, and for a number of years only used in that area, TQM is now becoming recognized as a generic management tool, just as applicable in service

Quality Management Principle 7 Relationship Management

1. Statement

For sustained success, an organization manages its relationships with interested parties, such as suppliers.

2. Rationale

Interested parties influence the performance of an organization.

Sustained success is more likely to be achieved when the organization manages relationships with all the interested parties to optimize their impact on its performance. Relationship management with its supplier and partner networks is of particular importance.

3. Key benefits

• Enhanced performance of the organization and its interested parties through responding to the opportunities and constraints related to each interested party.

• Common understanding of goals and values among interested parties.

• Increased capability to create value for interested parties by sharing resources and competence and managing quality-related risks.

• A well-managed supply chain that provides a stable f low of goods and services.

• Determine relevant interested parties (such as suppliers, partners, customers, investors, employees, and society as a whole) and their relationship with the organization.

• Determine and prioritize interested party relationships that need to be managed.

• Establish relationships that balance short-term gains with long-term considerations.

• Pool and share information, expertise and resources with relevant interested parties.

• Measure performance and provide performance feedback to interested parties, as appropriate, to enhance improvement initiatives.

• Establish collaborative development and improvement activities with suppliers, partners and other interested parties.

• Encourage and recognize improvements and achievements by suppliers and partners.

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and public sector organizations. There are a number of evolutionary strands, with different sectors creating their own versions from the common ancestor. TQM is the foundation for activities, which include:

1. Commitment by senior management and all employees 2. Meeting customer requirements

3. Reducing development cycle times 4. Just in time/demand flow manufacturing 5. Improvement teams

6. Reducing product and service costs 7. Systems to facilitate improvement 8. Line management ownership

9. Employee involvement and empowerment 10. Recognition and celebration

11. Challenging quantified goals and benchmarking 12. Focus on processes / improvement plans 13. Specific incorporation in strategic planning

This shows that TQM must be practiced in all activities, by all personnel, in manufacturing, marketing, engineering, R&D, sales, purchasing, HR, etc.

(Source: Khurram Hashmi. https://www.isixsigma.com/methodology/total-quality-management- tqm/introduction-and-implementation-total-quality-management-tqm/)

The 8 Total Quality Management Principles to Improve Processes

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(Source: Lucid Content Team. https://www.lucidchart.com/blog/8-total-quality-management-principles)

What is Total Quality Management?

According to the definitive text, Total Quality: A User’s Guide for Implementation, Total Quality Management (TQM) is a management technique based on the idea that all “employees continuously improve their ability to provide on-demand products and services that customers will find of particular value.”

The concept of Total Quality Management can be found right in its name: The word “total” implies that all employees in the organization, from development to production to fulfillment, are obligated to improve operations. And “management” insinuates that this methodology should be a focused effort. Leadership should provide funding, training, staffing, and clearly defined goals to actively manage product and service quality on an ongoing basis.

The 8 principles of Total Quality Management

As with most management methods and techniques, implementation and success will vary from one company to another. While there is not a single agreed-upon approach, the most common TQM definition includes the following eight principles.

Total Quality Management Principle 1 Customer Focus

Statement Implementation of TQM Benefits

The first of the Total Quality Management principles puts the focus back on the people buying your product or service. The customers determine the quality of the product. If the product fulfills a need and lasts as long or longer than expected, customers know that they have spent their money on a quality product.

When the company understand what the customer wants or needs, the company has a better chance of figuring out how to get the right materials, people, and processes in place to meet and exceed their expectations.

To implement this TQM principle:

1. Research and understand the customers’ needs and expectations.

2. Align the organization’s or company’s objectives with customer needs.

3. Communicate with customers, measure satisfaction, and use the results to find ways to improve processes.

4. Manage the customer relationships.

5. Find a balance for satisfying customers and other interested parties (such as owners, employees, suppliers, and investors).

The benefits of being customer- focused include:

1. More sales, increased revenue, market share, and mindshare

2. Strong customer loyalty leading to repeat business 3. Increased possibility that satisfied customers will tell others about your products and services

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27 Total Quality Management Principle 2 Total Employee Commitment

A company cannot increase productivity, processes, or sales without the total commitment of all employees. They need to understand the vision and goals that have been communicated.

They must be sufficiently trained and given the proper resources to complete tasks in order to be committed to reaching goals on time.

1. Clearly communicate and acknowledge the importance of each individual contribution to the completed product.

2. Stress that each team or individual accepts ownership and give them the responsibility and opportunity to solve problems when they arise.

3. Encourage employees to self- evaluate performance against personal goals and objectives, and make modifications as necessary to improve work-flow.

4. Acknowledge successes and optimized performance to build confidence in your employees and your stakeholders.

5. Make responsibilities clear, provide adequate training, and make sure the resources are used as efficiently as possible.

6. Encourage people to continually seek opportunities to learn and move into other roles to increase their knowledge, competence, and experience.

7. Create an environment where employees can openly discuss problems and suggest ways to solve them.

The key benefits of total employee commitment include:

1. Increased employee retention because employees are motivated, committed, and actively involved in working toward customer satisfaction 2. Individual and team innovation and creativity in problem-solving and process improvement

3. Employees who take pride and accountability for their own work.

4. Enthusiasm for active participation and contribution to continual improvement

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28 Total Quality Management Principle 3 Process Approach

Statement Implementation of TQM Benefits

Adhering to processes is critical in quality management.

Processes ensure that the proper steps are taken at the right time to ensure consistency and speed up production.

1. Use Total Quality Management tools such as process flowcharts to define and delineate clear roles and responsibilities so everybody knows who does what at certain times.

2. Create a visual action plan so everybody can easily see the specific activities that need to be completed to achieve the desired result.

3. Analyze and measure current activities to see where improvements can be made or where steps in the process are creating bottlenecks.

4. Evaluate the impact the processes and activities may have on your customers, suppliers, and all stakeholders.

Benefits of a process approach include:

1. Faster development and production cycles, lower costs, and increased revenue

2. More consistency and predictable outcomes

3. Focus on continued improvements and success

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29 Total Quality Management Principle 4 Integrated System

Typically a business has many different departments, each with their own specific functions and purposes. These departments and functions should be interconnected with horizontal processes that should be the focus of Total Quality Management. But sometimes these departments and functions operate in isolated silos.

In an integrated system, everybody in every department should have a thorough understanding of policies, standards, objectives, and processes. Integrated systems help the company to look for continual improvement in order to achieve an edge over the competition

1. Promote a work culture focused on quality.

2. Use flowcharts and other visual aids to help employees understand how their functions fit in with the rest of the company.

3. Use as-is process analysis to see where improvements can be made.

4. Make training available for employees who need to learn new processes and who want to explore opportunities for advancement.

Benefits include:

Focus on quality that will help your business achieve excellence and meet or exceed customer expectations

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30 Total Quality Management Principle 5 Strategic and Systematic Approach

The International Organization for Standardization (ISO) describes this principle as:

“Identifying, understanding and managing interrelated processes as a system contributes to the organization’s effectiveness and efficiency in achieving its objectives.”

Multiple processes within a development or production cycle are managed as a system of processes in an effort to increase efficiency.

1. Provide the employees with the proper training and resources that will help them complete their individual steps in the process.

2. Continually improve processes and products, and upgrade equipment as necessary to reach goals.

3. Make continual improvement a measurable objective for all employees.

4. Recognize, acknowledge, and reward innovations and process improvements.

Benefits include:

1. An ability to quickly identify, react, and fix process bottlenecks or breakdowns

2. Overall improved

organizational capabilities and improved performance

Total Quality Management Principle 6 Continual Improvement

Optimal efficiency and complete customer satisfaction do not happen in a day—your business should continually find ways to improve processes and adapt your products and services as customer needs shift. As previously stated, the other Total Quality Management principles should help your business keep an eye toward continual improvement.

1. Implement policies to establish product, process, and system improvements as measurable goals for individuals, teams, and departments.

2. Recognize, acknowledge, and encourage innovation to improve processes and development.

3. Encourage employees to participate in available training sessions to learn and take on new and additional roles.

Benefits include:

1. Improved knowledge and capabilities to increase performance

2. Improvement goals strategically aligned with organizational capabilities and goals

3. Quick reaction times to recognize and fix bottlenecks and broken processes

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31 Total Quality Management Principle 7 Fact-based Decision-making

Analysis and data gathering lead to better decisions based on the available information. Making informed decisions leads to a better understanding of customers and the market.

1. Analyze and check data to ensure that it is reliable and accurate.

2. Make relevant data available to stakeholders.

3. Use valid methods to gather and analyze data.

4. Make decisions based on the facts learned from the data in addition to your experience and intuition.

Benefits include:

1. Ability to make informed decisions

2. Ability to analyze and defend past decisions by referencing factual records

3. Ability to change past decisions based on data review.

Total Quality Management Principle 8 Communications

Everybody in your organization needs to be aware of plans, strategies, and methods that will be used to achieve goals. There is a greater risk of failure if a company does not have a good communication plan

1. Establish an official line of communication so that all employees know about updates, policy changes, and new processes.

2. Where possible, involve employees in decision-making.

3. Make sure everybody in every department understands their roles and how they fit in with the rest of the company.

Benefits include:

1. Boost in morale and motivation when employees understand how their contributions help the company achieve its goals.

2. Interdepartmental

coordination and cooperation.

3. Elimination of silos.

4. Ability to more accurately measure the effectiveness of current policies and procedures.

5. Higher motivation from employees to achieve goals because they are part of the decision-making process

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32 INSTRUCTION

LEARNING EXERCISE

Students are required to

1. Study (or involved in) the TQM applied in the organization/company.

2. Study how the company implement the TQM Principles in the organization/company.

3. Study what benefits the organization/company gain by applying TQM.

4. Study what problems the organization/company is facing in implementing the TQM Principles.

5. Study how the organization/company monitors continuous implementation of TQM Principles.

After studying the QM or TQM Principles in the organization/company, answer all these questions in your report.

1. List down all the QM/TQM Principles implemented in the organization/company.

2. In what departments the QM/TQM Principles are implemented?

3. How the organization/company make the QM/TQM Principles known to the employees?

4. How the organization/company implement the QM/TQM Principles in the management system or operation?

5. What are the benefits the organization/company gain when applying the QM/TQM Principles into their management?

6. Explain the method (e.g. statistical analysis) of TQM used in the organization/company to control the products’ quality? Student may give a case study as an example.

7. Give your comments/suggestions of the QM/TQM implementation in the organization/company.