1. Chapter 9
Organizing For
Total Quality
Management:
Structure And Teams
THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM 1

2. Organization
The process of creating a structure for the
organization that will enable its people to
work together effectively toward its
objective. Thus the process recognize a
structure as well as a behavioral or “people”
dimension.
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THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM

3. Why Adopt TQ Philosophy?
• Reaction to competitive threat to
profitable survival
• An opportunity to improve
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THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM

4. Selling the TQ Concept
1. Learn to think like top 6. Focus on getting an early
executives win, even if it is small
2. Position quality as a way to 7. Ensure that efforts won’t
address priorities of be undercut by corporate
stakeholders
accounting principles
3. Align objectives with those
of senior management 8. Develop allies, both
4. Make arguments internal and external
quantitative 9. Develop metrics for return
5. Make the first pitch to on quality
someone likely to be 10. Never stop selling quality
sympathetic
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THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM

5. Corporate Culture and Change
• Corporate culture is a company’s
value system and its collection of
guiding principles
• Cultural values often seen in mission
and vision statements
• Culture reflected by management
policies and actions
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THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM

6. Baldrige Core Values
and Concepts
• Visionary leadership • Focus on the future
• Customer-driven • Management by fact
excellence
• Public
• Organizational and
responsibility and
personal learning
citizenship
• Valuing employees and
partners • Focus on results and
• Agility creating value
• Managing for innovation • Systems perspective
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THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM

7. TQ vs. Traditional Management
• Organizational • Union-management
structures relations
• Role of people • Teamwork
• Definition of quality • Supplier relationships
• Goals and objectives • Control
• Knowledge • Customers
• Management systems • Responsibility
• Reward systems • Motivation
• Management’s role • Competition
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THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM

8. 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
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THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM

9. Common Mistakes
in TQ Implementation (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
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THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM

10. Common Mistakes
in TQ Implementation (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
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THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM

11. Common Mistakes
in TQ Implementation (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
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THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM

12. Building on Best Practices
• Universal best practices
– Cycle time analysis
– Process value analysis
– Process simplification
– Strategic planning
– Formal supplier certification programs
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THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM

13. 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
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THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM

14. 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
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THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM

15. Customer
Top Employees
Mgmt. Front-line Quality
supervisor
Council
Middl Functional
e Steering
Mgmt.
Mgmt. Committees
Functional Middle
Mgmt. Cross Functional
Mgmt. Teams
Front-line Top
supervisor. Mgmt. Quality
Employees Improvement Teams
Quality Circles
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THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM

16. Firm infrastructure Margin
Human Resource Management
Technology Development
procurement
In bound Sales Force Sales Force Service
logistics operations Administrat Operations
ion Margin
Sales Sales
Marketing advertising Force Technical
forces Promotion
management administrat operations literature
ion
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THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM

17. People
dimension output
Input
Activities Technical
Money Skills
Objective
Human
Resources
Machines
Technology
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THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM

18. 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
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THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM

19. Self Assessment: Basic Elements
• Management involvement and leadership
• Product and process design
• Product control
• Customer and supplier communications
• Quality improvement
• Employee participation
• Education and training
• Quality information
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THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM

20. Implementing Total Quality:
Key Players
• Senior management
• Middle management
• Workforce
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THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM

21. Sustaining the Quality Organization
• 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
• Share internal best practices (internal benchmarking)
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THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM