Key IdeaBuilding and sustaining a TQ organizationrequires a readiness for change, theadoption of sound practices andimplementation strategies, and aneffective organizational infrastructure.
Why Adopt TQ Philosophy? Reaction to competitive threat to profitable survival An opportunity to improve 3
Selling the TQ Concept• Learn to think like top • Focus on getting an early executives win, even if it is small• Position quality as a way • Ensure that efforts won’t to address priorities of be undercut by corporate stakeholders accounting principles• Align objectives with those of senior • Develop allies, both management internal and external• Make arguments • Develop metrics for return quantitative on quality• Make the first pitch to • Never stop selling quality someone likely to be sympathetic
Corporate Culture andChange Corporate culture is a company’s value system and its collection of guiding principles Cultural values often seen in mission and vision statements 5
Key IdeaCulture is reflected by the management policiesand actions that a company practices. Therefore,organizations that believe in the principles of totalquality are more likely to implement the practicessuccessfully. Conversely, actions set culture inmotion. As total quality practices are usedroutinely within an organization, its people learnto believe in the principles, and cultural changescan occur.
Baldrige Core Values andConcepts Visionary leadership Focus on the future Customer Driven Managing for Organizational and innovation personal learning Management by fact Valuing employees Social responsibility and partners Focus on results and Agility creating value Systems perspective
Cultural Change Change can be accomplished, but it is difficult Imposed change will be resisted Full cooperation, commitment, and participation by all levels of management is essential Change takes time You might not get positive results at first Change might go in unintended directions
Key IdeaImpatient managers often seek immediatecultural change by adopting off-the-shelf qualityprograms and practices, or by imitating othersuccessful organizations. In most cases, thisapproach is setting themselves up for failure.
Building on Best Practices Universal best practices – Cycle time analysis – Process value analysis – Process simplification – Strategic planning – Formal supplier certification programs
Best Practices:Infrastructure Design (1 of 3) Low performers – process management fundamentals – customer response – training and teamwork – benchmarking competitors – cost reduction – rewards for teamwork and quality 11
Best Practices:Infrastructure Design (2 of 3) Medium performers – use customer input and market research – select suppliers by quality – flexibility and cycle time reduction – compensation tied to quality and teamwork 12
Best Practices:Infrastructure Design (3 of 3) High performers – self-managed and cross-functional teams – strategic partnerships – benchmarking world-class companies – senior management compensation tied to quality – rapid response 13
Key IdeaOrganizations contemplating change must answersome tough questions, such as, Why is thechange necessary? What will it do to myorganization (department, job)? What problemswill I encounter in making the change? andperhaps the most important one — What’s in it forme?
Strategic vs. Process Change Strategic change is broad in scope and stems from strategic objectives, which are generally externally focused and relate to significant customer, market, product/service, or technological opportunities and challenges. Process change is narrow in scope and deals with the operations of an organization. An accumulation of continuously improving process changes can lead to a positive and sustainable culture change.
Key IdeaNumerous barriers exist to successfully transformorganizations to a sustained culture of totalquality. Understanding these barriers can helpsignificantly in managing change processes.Perhaps the most significant failure encounteredin most organizations is a lack of alignmentbetween components of the organizationalsystem.
Common Mistakes in TQImplementation (1 of 3) TQ regarded as a ―program‖ Short-term results are not obtained Process not driven by focus on customer, connection to strategic business issues, and support from senior management Structural elements block change Goals set too low ―Command and control‖ organizational culture 19
Common Mistakes in TQImplementation (2 of 3) Training not properly addressed Focus on products, not processes Little real empowerment is given Organization too successful and complacent Organization fails to address fundamental questions Senior management not personally and visibly committed 20
Common Mistakes in TQImplementation (3 of 3) Overemphasis on teams for cross-functional problems Employees operate under belief that more data are always desirable Management fails to recognize that quality improvement is personal responsibility Organization does not see itself as collection of interrelated processes 21
Sustaining the QualityOrganization View quality as a journey (―Race without a finish line‖) Recognize that success takes time Create a ―learning organization‖ – Planning – Execution of plans – Assessment of progress – Revision of plans based on assessment findings Use Baldrige assessment and feedback
Key IdeaOrganizations are dynamic entities. Managersmust consider the dynamic component in order todeal with instability in the environment, imperfectplans, the need for innovation, and the commonhuman desire for variety and change.
Key Activities of LearningOrganizations Systematic problem solving Experimentation with new approaches Learning from their own experiences and history Learning from the experiences and best practices of others Transferring knowledge quickly and efficiently throughout the organization
Self Assessment: BasicElements Management involvement and leadership Product and process design Product control Customer and supplier communications Quality improvement Employee participation Education and training Quality information
Key IdeaSelf-assessment should identify both strengthsand opportunities for improvement, creating abasis for evolving toward higher levels ofperformance. Thus, a major objective of mostself-assessment projects is the improvement oforganizational processes based on opportunitiesidentified by the evaluation.
Importance of Follow-Up ofSelf-Assessment Results Many organizations derive little benefit from conducting self-assessment and achieve few of the process improvements suggested by self-study Reasons: – Managers do not sense a problem – Managers react negatively or by denial – Managers don’t know what to do with the information
Key IdeaFollowing up requires senior leaders to engage intwo types of activities: action planning andsubsequently tracking implementation progress.
Leveraging Self-AssessmentFindings Prepare to be humbled Talk through the findings Recognize institutional influences Grind out the follow-up
Implementing ISO 9000 Start with a quality policy that identifies key objectives and basic procedures Develop a quality manual to document the procedures Use internal audits to maintain procedures Provide adequate resources
Implementing Six Sigma Committed leadership Integration with existing initiatives, business strategy, and performance measurement Process thinking Disciplined customer and market intelligence gathering A bottom line orientation Leadership in the trenches Training Continuous reinforcement and rewards
THE EVOLUTION OF QUALITYMANAGEMENT W. Edwards Deming has been the most prominent. In the 1940s Deming worked at the Census Bureau, where he introduced the use of statistical process control to monitor the mammoth operation. In 1950 Deming began teaching statistical quality control to Japanese companies.
Quality Guru – WalterShewaht Working at Bell Laboratories in the 1920s, he developed the technical tools such as control charts that formed the basis of statistical quality control; He and his colleagues at Bell Labs introduced the term quality assurance for their program to improve quality through the use of statistical control methods.
Quality Guru – W. EdwardsDeming A disciple of Shewart, he developed courses during World War II to teach statistical quality-control techniques to engineers and executives of companies that were military suppliers; after the war he began teaching statistical quality control to Japanese companies, initiating their quality movement.
Quality Guru – Joseph M.Juran An author and consultant, he followed Deming to Japan in 1954; He focused on strategic quality planning within an annual quality program, setting goals for product quality and designing processes to achieve those goals; Quality improvement is achieved by focusing on projects to solve problems and securing breakthrough solutions.
Quality Guru – ArmandV. Feigenbaum In his 1951 book, Quality Control: Principles, Practices and Administration, he introduced the concept of total quality control and continuous quality improvement as a companywide strategic commitment requiring the involvement of all functions in the quality process, not just manufacturing; From 1958 to 1968 he was director of manufacturing operations and quality control at GE.
Quality Guru – Philip Crosby In his 1979 book, Quality Is Free, he emphasized that the costs of poor quality (including lost labor and equipment time, scrap, downtime and lost sales) far outweigh the cost of preventing poor quality; In his 1984 book, Quality Without Tears, he defined absolutes of quality management—quality is defined as conformance to requirements, quality results from prevention, the performance standard is ―zero defects.‖
Quality Guru – KaoruIshikawa This Tokyo University professor promoted use of quality circles and developed the ―fishbone‖ (cause and effect) diagram to diagnose quality problems; He emphasized the importance of the internal customer, that is, that a quality organization is first necessary in order to produce quality products or services.