1. The Transition to TQM throughout
the Manufacturing Value Stream
Martin K. Hutchison
www.LeanOperator.com
LeanOperator Consulting

2. The Manufacturing Value Stream (MVS)
Every Solid Block Below has an Input, Processes, and Outputs. Therefore they ALL have Quality Deliverables. If
your internal customers aren’t helping set your Quality Metrics, then you do not practice Total Quality
Management (TQM) in a realistic sense, and you are not as responsive as you could be.
Engineering
Warranty Servicing
Sales Production Customer
Purchasing /
Materials
Management Field Services
Linear Flow of Functional Responsibility
Support Functions
Accounting Quality Information Systems Human Resources
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3. Sales
• Sales needs to transition from a “Making the Cash
Register Ring” mentality to that of a value adding
part of the Value Stream.
• The processes of making and managing sales
need to be addressed just as seriously as any
production process.
• The Sales output, in terms of specification
definition, delivery time, customer data, change
order management is key to the efficiency of
every department in the MVS.
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4. Purchasing and Materials
Management
• Deming was clear that purchasing must move
from a price focused approach to a value added,
long term relationship approach, as purchase
price only benefits one part of the MVS.
• Decisions to change vendors or materials need to
be made in conjunction with all stakeholders who
may have to make up for missing value later.
• Materials Management is not a subset of
Purchasing, despite reporting obligations (and
slide organization). The internal customers,
suppliers and quality factors are different.
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5. Engineering
• Keeping design processes close to the chest until
the designs are done are a thing of the past. As
parts are designed, the design processes must be
designed to add maximum value and quality.
• Cross functional input throughout the design
process is mandatory for competitiveness.
• Engineering workflow needs to be a process in
constant evolution as technology and best
practices evolve. Engineering tools also need to
be routinely evaluated for efficiency and quality
with the same attention as production tools.
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6. Production
• Doing things how it has always been done is the surest
way to lose competitiveness, but change needs to
planned.
• “Just Do It” is a shoe commercial, not a wise way to
lead. Do you have processes in place to handle
problems, or are more and more jobs expedited when
there are bumps or when the end of the month
approaches? Is your expediting process auditable?
• Quality parts are made with sound processes- get the
processes in place and follow them and product quality
will be the normal output.
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7. Warranty Servicing
• Warranty issues are not just fires to be fought
today, they generate data that must be used to
back-feed process improvements through the
MVS.
• Warranty failures will happen- so plan for them
and don’t treat each one like a special event with
the rules thrown out the window.
• A well running warranty and corrective action
process can drive customer satisfaction and
product reputation through the roof.
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8. Field Services
• Field Service groups should be treated as a valued
member of the product and service quality
improvement effort.
• They see the look on the customers face when
they are using the product and can provide
another angle on customer expectations.
• In many Industries, Warranty and Field Services,
when working well and together, will have a
bigger impact on the customers decision to make
repeat purchases than anyone else in the
company.
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9. Support Functions
ALL support functions should have ALL MVS Departments involved in setting
their quality metrics. If they take their metrics from the front office or
Corporate HQ, they will hinder as much as they will help.
• Accounting- Is the data coming in what is needed, and are the
processes creating useful data to internal customers (not just
Corporate)?
• Quality- Should be verifying quality processes and procedures in
every department in the company, not just production.
• IS/IT- Should be making communications technology part of
productivity improvements and waste elimination in all MVS
Departments.
• HR- Is HR reducing the hiring workload for supervisors or increasing
it with red tape and delays?
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10. Summary
• All Managers need to see their departments as
producers of product, with internal customers and
suppliers who should participate in setting their quality
metrics.
• The quality metrics of all internal products should be
defined. The documented and controlled processes
used to produce those products need to be audited
against those metrics.
• LeanOperator Consulting can help you establish the
culture, the metrics, processes and audit plans using
Best Practices customized to fit your needs.
www.LeanOperator.com