Organizing for Quality


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Organizing for Quality

  1. 1. Organizing for Quality Munif Ahmad Introduction to Quality
  2. 2. Organizing for quality <ul><li>ISO 9000/QS 9000 </li></ul><ul><li>Continuous improvement </li></ul><ul><li>Six sigma - DMAIC </li></ul><ul><li>TQM - PDSA </li></ul><ul><li>Quality circles </li></ul>Organizing for Quality
  3. 3. Concept of TQM <ul><li>TQM foundation: </li></ul><ul><ul><li>Any product, process, or service can be improved. </li></ul></ul><ul><ul><li>A successful organization is one that consciously seeks and exploits opportunities </li></ul></ul><ul><ul><li>for improvement at all levels. </li></ul></ul><ul><ul><li>The load bearing structure is customer satisfaction. </li></ul></ul><ul><ul><li>The watchword is continuous improvement. </li></ul></ul>Organizing for Quality
  4. 4. What must organizations do for quality to succeed <ul><li>“Organizations must adopt a cultural change that appreciates the primary need to meet customer requirements, implements a management philosophy that acknowledges this emphasis, encourages employee involvement, and embraces the ethic of continuous improvement.” </li></ul>Organizing for Quality International Economic Conference Board Report: May 1990
  5. 5. Transition to quality culture at Xerox Organizing for Quality Transition Team Training Senior Management Behavior Xerox Culture Change Tools and Processes Communication Reward and Recognition
  6. 6. Organizing for Quality
  7. 7. Market driven quality program Organizing for Quality Leadership Vision Involvement Policy Management Systems Information Planning Human resource Quality assurance Quality Results Improved quality Lower costs Customer Satisfaction Market Success “ Driver” System Measures of Progress Goal
  8. 8. IBM’s “new” CEQ initiative <ul><li>“ CEQ aims to instill a commitment in organizations to embrace quality as a guiding principle that touches every phase of the software development and deployment cycle. Organizations must build quality in, not treat it as an afterthought. Every individual in an organization, from the business analyst to the IT operator, can improve application quality through vigilance and a shared sense of responsibility for business and customer success.” </li></ul>Organizing for Quality
  9. 9. What are some of the steps organizations must take? <ul><li>Effectively develop and communicate quality policy, procedures and requirements across all company functions. </li></ul><ul><li>Mobilize resources to solve quality-related problems. </li></ul><ul><li>Effectively coordinate quality requirements with suppliers. (feed forward) </li></ul><ul><li>Maintain direct contact with customers (feedback). </li></ul>Organizing for Quality
  10. 10. Communicating quality requirements <ul><li>Examples of formal communication: </li></ul><ul><ul><li>Quality policy statement </li></ul></ul><ul><ul><li>Quality manuals </li></ul></ul><ul><ul><li>ISO 9000 quality standards </li></ul></ul><ul><li>Examples of informal communication: </li></ul><ul><ul><li>Word of mouth </li></ul></ul><ul><ul><li>Management actions </li></ul></ul>Organizing for Quality
  11. 11. Quality - basic beliefs Organizing for Quality Ford Quality is job one; t here's a Ford in your future Chrysler &quot;If you find a better car, buy it!&quot;  (Spoken by Lee Iacocca) Serta “ We make the world's best mattress” Caterpillar Strong dealer support; 24-hour spare parts support around the world McDonalds Fast service, consistent quality Sprint You can hear a pin drop
  12. 12. Quality - basic beliefs <ul><li>Lion Apparel - Continuous Improvement is a way of life at Lion. </li></ul><ul><li>Sager Electronics - our constant goal is to ensure that the services provided meet or exceed our customers' expectations. </li></ul><ul><li>Williams Advanced Materials - we are dedicated to providing ever improving exceptional products and services, and world-leading technologies. </li></ul>Organizing for Quality
  13. 13. Quality policy statement <ul><li>Most companies today have a written quality policy or mission statement </li></ul><ul><ul><li>For example, “It is the established policy and intention of this company to provide its customers with products which conform to customer requirements and are delivered on time. This will be ensured through a defined quality program as detailed in the company quality manual.” </li></ul></ul><ul><li>Some companies rely on verbal quality policies. for example, </li></ul><ul><ul><li>“ our goal is to ensure customer satisfaction and minimize rejects.” </li></ul></ul>Organizing for Quality
  14. 14. Other examples <ul><li>Goodyear: “our mission is constant improvement in products and services to meet our customers’ needs. This is the only means to business success for Goodyear and prosperity for its investors and employees.” </li></ul>Organizing for Quality
  15. 15. Other examples <ul><li>Motorola - “all employees at Motorola must consistently strive for a six sigma target.” </li></ul><ul><li>Motorola – “Doing the right thing.  Every day.  No excuses.” </li></ul>Organizing for Quality The bottom line: Organizations must demonstrate what Deming termed “constancy of purpose”.
  16. 16. Identifying and resolving quality problems <ul><li>Quality problems transcend individual and functional boundaries. Companies need multi-discipline problem solving. </li></ul>Organizing for Quality
  17. 17. Organizational approaches for multidiscipline problem solving <ul><li>Form cross functional teams. </li></ul><ul><ul><li>Quality improvement teams </li></ul></ul><ul><ul><li>Quality circles </li></ul></ul><ul><li>Adopt matrix versus functional organizational structure. </li></ul><ul><li>Co-locate engineering resources to open communication channels. </li></ul><ul><ul><li>Engineering technical centers/Centers of expertise </li></ul></ul>Organizing for Quality
  18. 18. Coordinating quality requirements with suppliers <ul><li>Importance of supply chain management </li></ul><ul><ul><li>Many quality problems are caused by defective purchased material (Crosby 50%). </li></ul></ul><ul><ul><li>Suppliers often represent a large % of manufacturing costs. </li></ul></ul>Organizing for Quality
  19. 19. Strategies for supplier relationships Organizing for Quality
  20. 20. Managing human resources & TQM <ul><li>Growing research indicates that TQM has not achieved its objectives due to human resource management (HRM) problems. </li></ul><ul><li>Failures occur when management falls short in their efforts to adopt a corporate culture fully embracing TQM. </li></ul>Organizing for Quality
  21. 21. What makes TQM an HR problem? <ul><li>TQM requires employee development & employee cooperation. </li></ul><ul><li>Thus, the task of top management is to: </li></ul><ul><ul><li>provide workers with the necessary skills and knowledge. </li></ul></ul><ul><ul><li>create a quality-minded culture among employees. </li></ul></ul><ul><li>A quality culture that: </li></ul><ul><ul><li>nurtures high-trust relationships. </li></ul></ul><ul><ul><li>has a shared sense of commitment. </li></ul></ul><ul><ul><li>believes that continuous improvement is for the common good. </li></ul></ul>Organizing for Quality
  22. 22. Establishing a quality minded culture <ul><li>Formation of a quality minded culture is a human interaction issue. </li></ul><ul><li>Therefore, quality management systems must provide: </li></ul><ul><ul><li>channels of communication for product-quality information among all concerned employees. </li></ul></ul><ul><ul><li>means of participation for employees so employees feel they’re part of the system </li></ul></ul>Organizing for Quality
  23. 23. Some HR challenges? <ul><li>Is company culture a subset of national culture? </li></ul><ul><li>Should companies encourage TQM participation via monetary incentives? </li></ul><ul><li>Do workers want to be involved in the quality management process - </li></ul><ul><ul><li>Actually, some want to have input. </li></ul></ul><ul><ul><li>many others do not want any increased responsibility. </li></ul></ul>Organizing for Quality