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Total Quality & Organizational Change

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  • 1. TOTAL QUALITY & ORGANIZATIONAL CHANGE By Zafar Ahmed Khan Ex- Chief Engineer Quality Systems and Development Engineering Pakistan International Airlines
  • 2. TOTAL QUALITY & ORGANIZATIONAL CHANGE • CONCEPT OF QUALITY AND TQM • ORGANIZATIONAL CHANGE – The Importance of Change • CULTURAL CHANGE – Elements of a Total Quality Culture – How Organizational Culture Is Changed – Making the New Culture Permanent – Cultural Change in Action • CONTINUOUS IMPROVEMENT AND LEARNING – How Continuous Improvement Is Practiced • REENGINEERING – Principles of Process Redesign • Case Study of PIA Engineering
  • 3. CONCEPT OF QUALITY AND TQM The total quality of characteristics and features of a product or process, which facilitate realization of given requirements. (German standard DIN 55350) Total Quality management (TQM) is an approach to improving the effectiveness and flexibility of business as a whole. It is essentially a way of organizing and involving the whole organization, every department, every activity and every single person at every level. (Oakland 1989) Integration of two concepts; i.e. Total Quality and Quality Management. Total Quality; The totality of features and characteristics if products or services that bears on its ability to satisfy given needs. Quality Management is the ways of working, that combines the capabilities of all employees for continuous improvement of every process with the dominant objective of increasing customer satisfaction and hence competitiveness.
  • 4. ORGANIZATIONAL CHANGE Four stages of learning: • Unconscious incompetence: You don’t know that you don’t know. • Conscious incompetence: You realize that you don’t know. • Conscious competence: You learn to do, but with conscious effort. • Unconscious competence: Performance comes effortlessly. – When organizations move into stage 2, they tend to shoot the messenger and refuse to accept the state of incompetence. – To move from stage 2 to stage 3, organizations must change. – Types of organizational change necessitated by TQM. • Cultural change, • Continuous improvement • Process change/ Reengineering
  • 5. The Importance of Change • Organizations committed to pursuing Total Quality, change is a way of life. • Organization implementing TQM, establishes a culture based on customer satisfaction, continuous improvement, and teamwork. • Why organization changes necessary? – customer expectations continuously evolve. – Competition continues to raise standard for quality and organizations must keep up. – processes tend to become unnecessarily complicated over a period of time, even when they are initially designed in a sensible manner. • Quality is a race without a finish line.
  • 6. CULTURAL CHANGE • Culture is the set of beliefs and values shared by the people in an organization. It is what binds them together. • Culture is a powerful influence on people’s behavior. because it operates without being talked about, indeed often without even being thought of. • one can learn about an organization’s culture in a number of ways. – How people dress and how they address one another. – the layout of offices, plant floors, and lounges. – Do offices have doors? Are there any private offices? – Culture is expressed in the stories and jokes people tell. – Culture is also reflected by the management policies, actions and company practices.
  • 7. Elements of a Total Quality Culture – Organizations where a focus on customer, continuous improvement, and teamwork are taken for granted have a good chance of succeeding at TQM. – These elements are summarized in Malcolm Baldrige National Quality Award Criteria for Performance Excellence. • Customer-driven quality, • Leadership, • Continuous improvement and learning, • Valuing employees, • Fast response, • Design quality and prevention, • Long-range view of the future, • Management by fact, • Partnership development, • Company responsibility and citizenship, and • Results focus.
  • 8. How Organizational Culture Is Changed • The change a company culture in consistent with quality it begins with leadership. • Leaders set example to employees by setting quality values in their own behavior to show the direction in which they want the company to go. • As a Quality Manager describe: They brought in a people-oriented environment. They make the environment conducive to change and tried to get to the point where employees felt safe to make a change. Before, you did what the boss told you to do, and if you didn’t you’re probably going to get fired. Now we have some coaches in place and facilitators, and they want the ideas from the employees, and its hell of a lot easier with their input. •Employees company-wide must be communicated of the new values and practices desired.
  • 9. • Cultural change is very difficult, takes several years to complete, and often fails. • One reason for the difficulty is resistance by the middle management. Managers resist change because it creates more work for them when they often feel overburdened. • For a change in culture requires managers to acknowledge that the current approach is somehow lacking, They may be afraid that they will not be able to perform effectively in the new culture. • Often reward systems get in the way of cultural change and must be adjusted for the new culture to take hold. How Organizational Culture Is Changed
  • 10. Making the New Culture Permanent – leaders must work to ensure not only that change is initiated, but that the new culture becomes a permanent part of the organization. 1. Make involvement in TQM a required part of people’s responsibilities. Making it voluntary implies that it is less important than things that are mandatory. 2. Use the existing organization to implement TQM. Special task forces and committees can disband; TQM should be part of the permanent organization. 3. Make sure everyone spends at least one hour a week working on quality issues. Enforcing this rule get people used to the idea of devoting time to quality and keeps other priorities from crowding out TQM. 4. Change the measurement and information systems, without appropriate measurements and information system, quality cannot become part of the fabric of the organization.
  • 11. Cultural Change in Action • Boeing is a good example of a company in a difficult competitive situation that has undertaken the task to change their cultures to become more responsive to customer needs. They began a process containing five steps. 1. Identify norms that currently guide behaviors and attitudes. 2. Identify the behaviors necessary to make the organization successful for tomorrow 3. Develop a list of new norms that will move the organization forward. 4. Identify the culture gaps--- the difference between the desired norms and actual norms. 5. Develop and put in place an action plan to implement the new cultural norms. These new norms will replace the old ones, and this transition will be monitored and enforced. • Boeing backed up this commitment to cultural change with a great deal of training, surveying of employees and customers, and executive commitment.
  • 12. CONTINUOUS IMPROVEMENT AND LEARNING – Continuous improvement (kaizen in Japanese) refers to both incremental and breakthrough improvement. It may be of several types; 1. Enhancing value to the customer through new and improved products and services; 2. Developing new business opportunities; 3. Reducing errors defects, and waste; 4. Improving responsiveness and cycle time performance; and 5. Improving productivity and effectiveness in the use of all resources. – The cumulative effect of hundreds or thousands of small improvements creates dramatic change in performance. – Quality-oriented organizations relentlessly improve their processes, products, and services, as well as their people (through training), day by day and month by month, over years and even decades.
  • 13. CONTINUOUS IMPROVEMENT AND LEARNING • “Learning” refers to adaptation to change, leading to new goals or approaches. Improvement in learning need to be embedded in a way an organization operates. • They should be a regular part of a daily work, seek to eliminate problems at their source. • Over the long run, superior performance depends on superior learning. • The concept of organizational learning can be thought of as the process of moving through the four stages of learning that we have described at the very beginning under organizational change (Slide #3)
  • 14. How Continuous Improvement Is Practiced • Given the large number of possible areas in the organization that could be improved, setting priorities is crucial. There are several ways to do this; – Many organizations rely on customer input and feedback, e.g. Reducing customer complaint may be taken on priority. – The Plan-Do-Check-Act (PDCA) cycle provides basic process for continuous improvement. – Quality tools, such as Check sheets and Pareto charts are used to prioritize problems. – Then steps are taken to improve the operation, the results of the change are checked. This leads to further action, and the cycle continues indefinitely.
  • 15. How Continuous Improvement Is Practiced • This technique is somewhat similar to the familiar problem-solving model: 1.Specify the problem, 2.Identify causes of the problem and determine which are most serious, 3.Develop a list of potential solutions, 4.Analyze the potential benefit of the solutions and choose one, 5.Implement the solution. However, with a continuous improvement mindset, step 5 leads directly back to step 1, unless the operation is now flawless. • Persistence is important in pursuing continuous improvement. • Like the cultural change that motivates it, continuous improvement is difficult to sustain. Perhaps the “if it’s not broke, don’t fix it” mentality is too deeply embedded our culture.
  • 16. REENGINEERING • The fundamental rethinking and redesign of operating processes and organizational structure, focused on the organization’s core competence to achieve dramatic improvements in organizational performance---- Lowenthal (1994) • Reengineering is the fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in critical contemporary measures of performance, such as cost, service and speed----Hammer (1994) • Reengineering (also known as process design) is focused on “breakthrough” improvement to dramatically improve the quality and speed of work and to reduce its cost by fundamentally changing the processes by which work gets done.
  • 17. REENGINEERING • Reengineering is often used when the improvements needed are so great that incremental changes to operations will not get the job done. Ten percent improvements can be created by tinkering, but 50 percent improvements call for process redesign. • The irony of reengineering is that, once the new process is in place, people often feel that the new way of operating is so much better, they should have thought of it long ago. • Another common reaction is “Why did we ever do it like that in the first place?” • If a process is driven by an administrative logic such as cost accounting or functional specialization, it is ripe for reengineering.
  • 18. Principles of Process Redesign • Poor processes waste time, money, material, effort, and customer goodwill. Redesigning processes to reduce waste is, at this point at least, more than art and science. • Every process redesign is unique, but the general principles of redesign include. – Reduce and handoffs – Eliminate steps – Perform steps in parallel rather than in sequence – Involve key people early • With a redesign in hand, it will require a pilot program to test feasibility and workability. After a successful pilot test, it will be ready for implementation. • The reengineering leader, (senior executive), has to support the effort at all times, since this effort will be forcing people to undergo dramatic and maybe painful change.
  • 19. CASE STUDY OF PIA ENGINEERING ORGANIZATIONAL CULTURE CHANGE • The project of acquiring JAR 145 (Now known as, EASA Part 145), the Quality Approval of European Union Aviation Authority, for the entire Engineering Department of Pakistan International Airlines was successfully accomplished by the author of this paper, in 2004. • Having a first hand experience, working as Project & Quality Manager and Management Representative, the task of Changing an Organizational Culture to conform TQM, of a public sector, service providing, leading Engineering organization, using above mentioned TQM principles and overcoming the resistances and road blocks, as expected, is a separate and long story by itself. • Those who are interested to read my paper/case study “Implementing JAR 145 in an airline”: can find it in the link of Case Studies on the following website: www.piqc.com.pk
  • 20. References: • John Black “Boeing’s Quality Strategy: A Continuing Evolution. (Quest for Competitiveness. Y. K. Shetty & V. M. Buelher (eds.)) Quorum Books, USA. • 1998 Criteria for Performance Excellence: Malcolm Bolridge National Quality Award • The Quality Manager Primer: Glenn Gee, Wes Richardson & Bill Wortman: Quality Council of Indiana/ASQ Press. USA. • Total Quality: Management, Organization & Strategy: James Evans & James Dean Jr. Thomson College Publishing: Ohio, USA. • Handbook of Total Quality Management: RP Mohantly, RR Lakhe: Jaico Publishing, India. • TQM in the service sector: RP Mohantly & R R Lakhe: Jaico Publishing, India. • Quality: A critical introduction: John Beckford: Routledge, USA