This chapter discusses building and sustaining total quality organizations. Key points include: - Adopting a total quality philosophy can help companies improve and react to competitive threats. It requires readiness for change, best practices, and an effective organizational structure. - Corporate culture change is difficult and must have full participation at all levels. Changes take time and may not have immediate results. - Implementing total quality requires commitment from senior management, middle management, and the entire workforce. Strategic changes address objectives while process changes improve operations. - Common mistakes are treating quality as a program rather than a focus on customers, setting goals too low, and lack of empowerment or commitment from senior leadership. Sustaining

1. 11
Chapter 7 (Abridged)Chapter 7 (Abridged)
Building andBuilding and
SustainingSustaining
Total QualityTotal Quality
OrganizationsOrganizations
Dr. John V. PaduaDr. John V. Padua
The
Management
& Control of
Quality, 7e

2. Learning ObjectivesLearning Objectives
At the end of the discussion, students are expected to
learn and understand the following:
• Why adopt TQ philosophy
• Corporate Culture and Change
• Best Practices
• Team Players to Total Quality
• Strategic vs. Process Change
• Common Mistakes in TQ Implementation

3. Key IdeaKey Idea
Building and sustaining a TQ organization
requires a readiness for change, the
adoption of sound practices and
implementation strategies, and an
effective organizational infrastructure.

4. 44
Why Adopt TQ Philosophy?Why Adopt TQ Philosophy?
 Reaction to competitive threat toReaction to competitive threat to
profitable survivalprofitable survival
 An opportunity to improveAn opportunity to improve

5. 55
Corporate Culture andCorporate Culture and
ChangeChange
 Corporate cultureCorporate culture is a company’sis a company’s
value system and its collection ofvalue system and its collection of
guiding principlesguiding principles
 Cultural values often seen inCultural values often seen in
mission and vision statementsmission and vision statements

6. Cultural ChangeCultural Change
 Change can be accomplished, but it is difficultChange can be accomplished, but it is difficult
 Imposed change will be resistedImposed change will be resisted
 Full cooperation, commitment, and participationFull cooperation, commitment, and participation
by all levels of management is essentialby all levels of management is essential
 Change takes timeChange takes time
 You might not get positive results at firstYou might not get positive results at first
 Change might go in unintended directionsChange might go in unintended directions

7. Building on Best PracticesBuilding on Best Practices
 Universal best practicesUniversal best practices
– Cycle time analysisCycle time analysis
– Process value analysisProcess value analysis
– Process simplificationProcess simplification
– Strategic planningStrategic planning
– Formal supplier certificationFormal supplier certification
programsprograms

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Implementing Total Quality:Implementing Total Quality:
Key PlayersKey Players
 Senior managementSenior management
 Middle managementMiddle management
 WorkforceWorkforce

9. Key IdeaKey Idea
Organizations contemplating change must answer
some tough questions, such as, Why is the
change necessary? What will it do to my
organization (department, job)? What problems
will I encounter in making the change? and
perhaps the most important one — What’s in it for
me?

10. Strategic vs. ProcessStrategic vs. Process
ChangeChange
 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.

11. 1111
Common Mistakes in TQCommon Mistakes in TQ
ImplementationImplementation (1 of 2)(1 of 2)
 TQ regarded as a “program”TQ regarded as a “program”
 Process not driven by focus on customer,Process not driven by focus on customer,
connection to strategic business issues, andconnection to strategic business issues, and
support from senior managementsupport from senior management
 Goals set too lowGoals set too low
 Management fails to recognize that qualityManagement fails to recognize that quality
improvement is personal responsibilityimprovement is personal responsibility
 Organization does not see itself as collectionOrganization does not see itself as collection
of interrelated processesof interrelated processes

12. Sustaining the QualitySustaining the Quality
OrganizationOrganization
 View quality as a journey (“Race without aView quality as a journey (“Race without a
finish line”)finish line”)
 Recognize that success takes timeRecognize that success takes time
 Create a “learning organization”Create a “learning organization”
– PlanningPlanning
– Execution of plansExecution of plans
– Assessment of progressAssessment of progress
– Revision of plans based on assessment findingsRevision of plans based on assessment findings

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Common Mistakes in TQCommon Mistakes in TQ
ImplementationImplementation (2 of 3)(2 of 3)
 Training not properly addressedTraining not properly addressed
 Focus on products, not processesFocus on products, not processes
 Little real empowerment is givenLittle real empowerment is given
 Organization too successful and complacentOrganization too successful and complacent
 Organization fails to address fundamentalOrganization fails to address fundamental
questionsquestions
 Senior management not personally andSenior management not personally and
visibly committedvisibly committed