This document provides an overview of key concepts for building and sustaining a total quality organization, including: - Adopting sound practices and implementation strategies and having an effective organizational infrastructure are required. - Cultural changes take time and full participation from all management levels is essential for successful implementation of total quality principles. - Common mistakes include not obtaining short-term results, lack of focus on customers and processes, and failure to address fundamental questions.

1. Chapter 17
Building and
Sustaining
Total Quality
Organizations
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2. Key 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.

3. Why Adopt TQ Philosophy?
 Reaction to competitive threat to
profitable survival
 An opportunity to improve
3

4. Selling the TQ Concept
• Learn to think like top • Focus on getting an early
executives win, even if it is small
• Position quality as a way • Ensure that efforts won’t
to address priorities of be undercut by corporate
stakeholders
accounting principles
• Align objectives with
those of senior • Develop allies, both
management internal and external
• Make arguments • Develop metrics for return
quantitative on quality
• Make the first pitch to • Never stop selling quality
someone likely to be
sympathetic

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
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6. Key Idea
Culture is reflected by the management policies
and actions that a company practices. Therefore,
organizations that believe in the principles of total
quality are more likely to implement the practices
successfully. Conversely, actions set culture in
motion. As total quality practices are used
routinely within an organization, its people learn
to believe in the principles, and cultural changes
can occur.

7. Baldrige Core Values and
Concepts
 Visionary leadership  Focus on the future
 Customer Driven  Managing for
 Organizational and innovation
personal learning  Management by fact
 Valuing employees  Social responsibility
and partners  Focus on results and
 Agility creating value
 Systems perspective

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

9. Key Idea
Impatient managers often seek immediate
cultural change by adopting off-the-shelf quality
programs and practices, or by imitating other
successful organizations. In most cases, this
approach is setting themselves up for failure.

10. Building on Best Practices
 Universal best practices
– Cycle time analysis
– Process value analysis
– Process simplification
– Strategic planning
– Formal supplier certification
programs

11. 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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12. 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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13. 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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14. Implementing Total Quality:
Key Players
 Senior management
 Middle management
 Workforce
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15. Key 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?

16. Strategic vs. Process Change
 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.

17. Contrasts

18. Key Idea
Numerous barriers exist to successfully transform
organizations to a sustained culture of total
quality. Understanding these barriers can help
significantly in managing change processes.
Perhaps the most significant failure encountered
in most organizations is a lack of alignment
between components of the organizational
system.

19. 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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20. 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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21. 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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22. 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

23. Key Idea
Organizations are dynamic entities. Managers
must consider the dynamic component in order to
deal with instability in the environment, imperfect
plans, the need for innovation, and the common
human desire for variety and change.

24. Key Activities of Learning
Organizations
 Systematic problem solving
 Experimentation with new approaches
 Learning from their own experiences
and history
 Learning from the experiences and
best practices of others
 Transferring knowledge quickly and
efficiently throughout the organization

25. 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

26. Key Idea
Self-assessment should identify both strengths
and opportunities for improvement, creating a
basis for evolving toward higher levels of
performance. Thus, a major objective of most
self-assessment projects is the improvement of
organizational processes based on opportunities
identified by the evaluation.

27. Importance of Follow-Up of
Self-Assessment Results
 Many organizations derive little benefit from
conducting self-assessment and achieve few
of the process improvements suggested by
self-study
 Reasons:
– Managers do not sense a problem
– Managers react negatively or by denial
– Managers don’t know what to do with the
information

28. Key Idea
Following up requires senior leaders to engage in
two types of activities: action planning and
subsequently tracking implementation progress.

29. Leveraging Self-Assessment
Findings
 Prepare to be humbled
 Talk through the findings
 Recognize institutional influences
 Grind out the follow-up

30. Implementing ISO 9000
 Start with a quality policy that
identifies key objectives and basic
procedures
 Develop a quality manual to document
the procedures
 Use internal audits to maintain
procedures
 Provide adequate resources

31. Implementing Six Sigma
 Committed leadership
 Integration with existing initiatives, business
strategy, and performance measurement
 Process thinking
 Disciplined customer and market intelligence
gathering
 A bottom line orientation
 Leadership in the trenches
 Training
 Continuous reinforcement and rewards

32. THE EVOLUTION OF QUALITY
MANAGEMENT
 W. Edwards Deming has been the
most prominent.
 In the 1940s Deming worked at the
Census Bureau, where he introduced
the use of statistical process control to
monitor the mammoth operation.
 In 1950 Deming began teaching
statistical quality control to Japanese
companies.

33. Quality Guru – Walter
Shewaht
 Working at Bell Laboratories in the
1920s, he developed the technical tools
such as control charts that formed the
basis of statistical quality control;
 He and his colleagues at Bell Labs
introduced the term quality assurance for
their program to improve quality through
the use of statistical control methods.

34. Quality Guru – W. Edwards
Deming
 A disciple of Shewart, he developed courses
during World War II to teach statistical
quality-control techniques to engineers and
executives of companies that were military
suppliers;
 after the war he began teaching statistical
quality control to Japanese companies,
initiating their quality movement.

35. Quality Guru – Joseph M.
Juran
 An author and consultant, he followed
Deming to Japan in 1954;
 He focused on strategic quality planning
within an annual quality program, setting
goals for product quality and designing
processes to achieve those goals;
 Quality improvement is achieved by focusing
on projects to solve problems and securing
breakthrough solutions.

36. Quality Guru – Armand
V. Feigenbaum
 In his 1951 book, Quality Control:
Principles, Practices and Administration, he
introduced the concept of total quality
control and continuous quality improvement
as a companywide strategic commitment
requiring the involvement of all functions in
the quality process, not just manufacturing;
 From 1958 to 1968 he was director of
manufacturing operations and quality
control at GE.

37. Quality Guru – Philip Crosby
 In his 1979 book, Quality Is Free, he emphasized
that the costs of poor quality (including lost labor
and equipment time, scrap, downtime and lost
sales) far outweigh the cost of preventing poor
quality;
 In his 1984 book, Quality Without Tears, he defined
absolutes of quality management—quality is
defined as conformance to requirements, quality
results from prevention, the performance standard
is ―zero defects.‖

38. Quality Guru – Kaoru
Ishikawa
 This Tokyo University professor promoted use
of quality circles and developed the ―fishbone‖
(cause and effect) diagram to diagnose
quality problems;
 He emphasized the importance of the internal
customer, that is, that a quality organization
is first necessary in order to produce quality
products or services.

39. Quality Circle