Agenda
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Review homework
Desksides
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Organizing for Quality
Lecture/discussion
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Chapter 1 Organizing for
Quality
Chapter 1 TQM
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Week 3
Week 4 Assignments
• Read - Ch 2
• Presentations:
• Deming
• Crosby
• Taguchi
• Juran
• Shewhart
• Ishikawa
• Feigenbaum
• Tom Peters
• Shigeo Shingo
Organizing for Quality
Organizing for Quality
Chapter One
Organizing for Quality
Organizing for quality
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ISO 9000/QS 9000
Continuous improvement
Six sigma - DMAIC
TQM - PDSA
Quality circles
Organizing for Quality
Concept of TQM
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TQM foundation:
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Any product, process, or service can be
improved.
A successful organization is one that
consciously seeks and exploits opportunities
for improvement at all levels.
The load bearing structure is customer
satisfaction.
The watchword is continuous improvement.
Organizing for Quality
What must organizations do
for quality to succeed
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“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.”
International Economic Conference Board
Report: May 1990
Organizing for Quality
Transition to quality culture
at Xerox
Transition
Team
Training
Senior
Management
Behavior
Xerox
Culture
Change
Tools and
Processes
Communication
Reward and
Recognition
Organizing for Quality
Organizing for Quality
Allaire’s approach
Organizing for Quality
Managing-by-process principles
1. Make
all decision and perform all actions within the guidelines of the
"what to's" of the core business processes and their impact on
other core processes.
2. Establish owners for all core business processes and subprocesses.
3. Designate these owners as responsible for the maintenance and
use of that process, with their reward tied to the successful
functioning of that process for all Xerox personnel.
4. Empower the owners of the process with the responsibility for
continuously improving those core processes, and reengineering
them when necessary.
5. Constrain core process and sub-process owners from making
changes to their core processes that may affect other core
processes that are owned by other managers.
6. Designate responsibility for a change in a core process to the
highest-level owner of a core process that is being changed
because core sub-processes are being changed by lower-level
process owners.
Organizing for Quality
IBM’s market driven quality
program
System
Leadership
Systems
Vision
Involvement
Policy
Management
Information
Planning
Human resource
Quality
assurance
Quality
Results
Improved quality
Lower costs
Market
Success
Organizing for Quality
Goal
Customer
Satisfaction
“Driver”
Measures
of Progress
IBM’s “new” CEQ initiative
“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.”
Organizing for Quality
What are some of the steps
organizations must take?
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Effectively develop and communicate quality
policy, procedures and requirements across all
company functions.
Mobilize resources to solve quality-related
problems.
Effectively coordinate quality requirements with
suppliers. (feed forward)
Maintain direct contact with customers
(feedback).
Organizing for Quality
Communicating quality
requirements
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Examples of formal communication:
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Quality policy statement
Quality manuals
ISO 9000 quality standards
Examples of informal communication:
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Word of mouth
Management actions
Organizing for Quality
Quality - basic beliefs
Ford
Chrysler
Serta
Quality is job one; there's a Ford in
your future
"If you find a better car, buy it!"
(Spoken by Lee Iacocca)
“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
Organizing for Quality
Quality - basic beliefs
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Lion Apparel - Continuous Improvement
is a way of life at Lion.
Sager Electronics - our constant goal is
to ensure that the services provided meet
or exceed our customers' expectations.
Williams Advanced Materials - we are
dedicated to providing ever improving
exceptional products and services, and
world-leading technologies.
Organizing for Quality
Quality policy statement
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Most companies today have a written quality policy or
mission statement
• 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.”
Some companies rely on verbal quality policies. for
example,
• “our goal is to ensure customer satisfaction and
minimize rejects.”
Organizing for Quality
Other examples
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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.”
Organizing for Quality
Other examples
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Motorola - “all employees at Motorola
must consistently strive for a six sigma
target.”
Motorola – “Doing the right thing. Every
day. No excuses.”
The bottom line:
Organizations must demonstrate
what Deming termed “constancy of
purpose”.
Organizing for Quality
Identifying and resolving
quality problems
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Quality problems transcend individual
and functional boundaries. Companies
need multi-discipline problem solving.
Organizing for Quality
Organizational approaches for
multidiscipline problem solving
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Form cross functional teams.
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Quality improvement teams
Quality circles
Adopt matrix versus functional
organizational structure.
Co-locate engineering resources to open
communication channels.
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Engineering technical centers/Centers of
expertise
Organizing for Quality
Coordinating quality
requirements with suppliers
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Importance of supply chain management
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Many quality problems are caused by
defective purchased material (Crosby 50%).
Suppliers often represent a large % of
manufacturing costs.
Organizing for Quality
Strategies for supplier
relationships
Criteria
Traditional
Approach
Long Term
Partnership
Philosophy
"keep suppliers on their toes"
"mutual dependence"
Supply base
Large supply base
Contract length
Often short term contracts
Few suppliers - "single
sourcing"
Often long term contracts
Awarding
contracts
Supplier costs
Low cost bid
Negotiated
Either company or supplier
wins
Cooperation as needed;
company protects knowledge
Share cost savings (win-win)
Cooperation
Frequent joint problem solving
Organizing for Quality
Managing human resources
& TQM
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Growing research indicates that TQM
has not achieved its objectives due to
human resource management (HRM)
problems.
Failures occur when management falls
short in their efforts to adopt a corporate
culture fully embracing TQM.
Organizing for Quality
What makes TQM an HR
problem?
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TQM requires employee development &
employee cooperation.
Thus, the task of top management is to:
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provide workers with the necessary skills and
knowledge.
create a quality-minded culture among employees.
A quality culture that:
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nurtures high-trust relationships.
has a shared sense of commitment.
believes that continuous improvement is for the
common good.
Organizing for Quality
Establishing a quality minded
culture
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Formation of a quality minded culture is a
human interaction issue.
Therefore, quality management systems
must provide:
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channels of communication for productquality information among all concerned
employees.
means of participation for employees so
employees feel they’re part of the system
Organizing for Quality
Some HR challenges?
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Is company culture a subset of national
culture?
Should companies encourage TQM
participation via monetary incentives?
Do workers want to be involved in the
quality management process •
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Actually, some want to have input.
many others do not want any increased
responsibility.
Organizing for Quality
Quality Improvement
Teams
Organizing for Quality
Organizing for Quality
Roles for QI teams
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In addition to solving quality problems, QI
teams help:
provide a means of participation for
employees in quality decision-making.
aid employee development: leadership,
problem-solving skills.
lead to quality awareness which is
essential for organizational culture
change.
Organizing for Quality
Types of quality improvement
teams
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Project teams
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Quality circles
Organizing for Quality
Project team characteristics
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Teams address key organizational issues
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concurrent engineering
ISO 9000 implementation
membership - generally mandatory
temporary in nature
participation is cross-functional
team leaders have varying degrees of
authority
Organizing for Quality
Quality circle
characteristics
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Voluntary groups of 6-8 members
Quality circle teams are semi-permanent
Teams are from single functional
department
Members have equal status and select
their own project
Minimum pressure to solve problems with
a set time frame
Organizing for Quality
Implementing quality circles
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Quality circles require top management
support
Personal characteristics of facilitators are
critical
Scope of project needs to be small
enough to be capably addressed by the
team
Success of other teams has positive peer
pressure effect
Organizing for Quality
Implementation
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Japan- highly successful
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Widely publicized quality circles
Product development teams
U.S. - marginal success
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Product development teams have
succeeded more so than quality circle teams
Organizing for Quality
Concurrent engineering
project teams
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Concurrent engineering teams are having
success - examples: Boeing Chrysler
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a concurrent process carried out by a multifunctional product development team.
intended to replace sequential development
process.
they avoid potential quality problems by
integrating upstream and downstream
functions in the preliminary design phase.
Organizing for Quality