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Chapter 9                         Organizing For                          Total Quality                         Management...
Organization          The process of creating a structure for the          organization that will enable its people to    ...
Why Adopt TQ Philosophy?      • Reaction to competitive threat to        profitable survival      • An opportunity to impr...
Selling the TQ Concept  1. Learn to think like top                           6.  Focus on getting an early     executives ...
Corporate Culture and Change      • Corporate culture is a company’s        value system and its collection of        guid...
Baldrige Core Values                          and Concepts  • Visionary leadership                                    • Fo...
TQ vs. Traditional Management      • Organizational                                 • Union-management        structures  ...
Cultural Change    • Change can be accomplished, but it is difficult    • Imposed change will be resisted    • Full cooper...
Common Mistakes               in TQ Implementation (1 of 3)     • TQ regarded as a “program”     • Short-term results are ...
Common Mistakes               in TQ Implementation (2 of 3)     • Training not properly addressed     • Focus on products,...
Common Mistakes                in TQ Implementation (3 of 3)     • Overemphasis on teams for cross-functional       proble...
Building on Best Practices      • Universal best practices           – Cycle time analysis           – Process value analy...
Best Practices:                 Infrastructure Design (1 of 3)      • Low performers           – process management fundam...
Best Practices:                 Infrastructure Design (2 of 3)     • Medium performers          – use customer input and m...
Customer                 Top                   Employees                Mgmt.                   Front-line                ...
Firm infrastructure                                        Margin                Human Resource Management                ...
People                                             dimension                                 output          Input        ...
Best Practices:                 Infrastructure Design (3 of 3)     • High performers          – self-managed and cross-fun...
Self Assessment: Basic Elements      •   Management involvement and leadership      •   Product and process design      • ...
Implementing Total Quality:                    Key Players      • Senior management      • Middle management      • Workfo...
Sustaining the Quality Organization      • View quality as a journey (“Race without a finish        line”)      • Recogniz...
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Tqm ch 09

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  1. 1. Chapter 9 Organizing For Total Quality Management: Structure And TeamsTHE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM 1
  2. 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. 2THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
  3. 3. Why Adopt TQ Philosophy? • Reaction to competitive threat to profitable survival • An opportunity to improve 3THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
  4. 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 4THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
  5. 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 5THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
  6. 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 6THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
  7. 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 7THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
  8. 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 8THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
  9. 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 9THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
  10. 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 10THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
  11. 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 11THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
  12. 12. Building on Best Practices • Universal best practices – Cycle time analysis – Process value analysis – Process simplification – Strategic planning – Formal supplier certification programs 12THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
  13. 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 13THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
  14. 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 14THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
  15. 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 15THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
  16. 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 16THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
  17. 17. People dimension output Input Activities Technical Money Skills Objective Human Resources Machines Technology 17THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
  18. 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 18THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
  19. 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 19THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
  20. 20. Implementing Total Quality: Key Players • Senior management • Middle management • Workforce 20THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
  21. 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) 21THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
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