Download - Chapter17 total quality control
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Chapter 17
Building and SustainingTotal QualityOrganizations
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.
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Why Adopt TQ Philosophy? Reaction to competitive threat
to profitable survival An opportunity to improve
Selling the TQ Concept• Learn to think like top
executives• Position quality as a
way to address priorities of stakeholders
• Align objectives with those of senior management
• Make arguments quantitative
• Make the first pitch to someone likely to be sympathetic
• Focus on getting an early win, even if it is small
• Ensure that efforts won’t be undercut by corporate accounting principles
• Develop allies, both internal and external
• Develop metrics for return on quality
• Never stop selling quality
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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
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.
Baldrige Core Values and Concepts Visionary
leadership Customer Driven Organizational
and personal learning
Valuing employees and partners
Agility
Focus on the future
Managing for innovation
Management by fact
Social responsibility
Focus on results and creating value
Systems perspective
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
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.
Building on Best Practices Universal best practices
–Cycle time analysis–Process value analysis–Process simplification–Strategic planning–Formal supplier certification
programs
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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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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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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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Implementing Total Quality:Key Players
Senior management Middle management Workforce
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?
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.
Contrasts
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.
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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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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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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
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
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.
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
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
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.
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
Key Idea
Following up requires senior leaders to engage in two types of activities: action planning and subsequently tracking implementation progress.
Leveraging Self-Assessment Findings Prepare to be humbled Talk through the findings Recognize institutional influences Grind out the follow-up
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
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
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.
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.
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.
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.
Quality Guru – ArmandV. 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.
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.”
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.
Quality Circle