F

*- DCASR* 0 BOSTONI-

DTICI ELECTE

OCT 0 6 1989

DDDSTRATEGIC/

TOTAL QUALITY MANAGEMENTMASTER PLAN

USINGMANAGEMENT BY PLANNING

(MBP)

JUNE 1989

=1r ~TON STATEMENT AAptoved foT pubic releatel

Diutnbutuon Uni-~lted

89 10 6 005

& a

IL i m iForm Approved

REPORT DOCUMENTATION PAGE 0Mo No4-o

ulic repoting urden, for thicollection of ,nforat,.on, is estimated to averagei hour Woe response. including the time for reviewing instructions. searching existing data soucs.gathering and maintaining the data needed, and completing and eviewig the cOllection of information. Send comments regarding this burden estimate or any other aspect of this

=oecton of informatOn, including suggestions for reducing this burden, to Washington Headquarters Services. Directorate for information Operations and Reports. 12IM JeffmnonDavis Highway. Suite 1204. Arlington. VA 22202-4302, and to the Office of Managemert and Budget. Paperwork Reduction Project (0704.0188). Washington, DC 20503.

1. AGENCY USE ONLY (Leave blank) 2. REPORT DATE 3. REPORT TYPE AND DATES COVERED

4. TITLE AND SUBTITLE 5. FUNDING NUMBERSDCASR Boston Strategic/Total Quality Management MasterPlan Using Management by Planning (MBP)

6. AUTHOR(S)

7. PERFORMING ORGANIZATION NAME(S) AND ADDRESS(ES) 8. PERFORMING ORGANIZATICNDefense Contract Administration Services Region (DCASR) REPORT NUMBERBoston

Boston, MA

9. SPONSORING / MONITORING AGENCY NAME(S) AND ADDRESS(ES) 10. SPONSORING/ MONITORINGAGENCY REPORT NUMBER

11. SUPPLEMENTARY NOTES

12a. DISTRIBUTION /AVAILABILITY STATEMENT 12b. DISTRIBUTION CODE

Approved for Public Release; D stribution is Unlimited.

13. ABSTRACT (Maximum 200 words)-.This document discusses the DC4SR Boston approach and plan to implement TotalQuality Management (TQM). It includes the DCASR Boston vision, management byplanning, one-year plan, milestones and training plan. Vision elements and manage-ment by planning are discussed in detail. N

\A

1,, 89 10 6, 0 0514. SUBJECT TERMS 15. NUMBER OF PAGES

TQM (Total Quality Management), Continuous Process Improvement,,Contract Administration Services, Management by Planning 16. PRICE CODE

17. SECURITY CLASSIFICATION 18. SECURITY CLASSIFICATION 19. SECURITY CLASSIFICATION 20. LIMITATION OF ABSTRACTOF REPORT OF THIS PAGE OF ABSTRACT

LUNCLASSIFIED UNCLASSIFIED UNCLASSIFIED UL

NSN 7540-01-280-5500 ' Standard Form 298 (Rev. 2-89)Prcribed by ANSI Std 139-19

Ib

FOREWORD

DCASR Boston"s management is committed to providing allmanagers, supervisors and personnel with the tools, trainingand incentives to improve the quality, timeliness andefficiency of the services we provide our customers.

The Strategic/Total Quality Management (TQM) Master Plandeveloped through Management by Planning (MBP) is a living,breathing document to ensure that the directions, targets andobjectives of our organization are well developed anddefined, clearly communicated, monitored, implemented andresponsive (based on system feedback).

To attain our vision, we must have commitment, vision(strategic), principles, communication, organization, targets(tactical), execution, assessment and standardization.

In realizing our vision, I challenge you, "DCASR Boston'sTeam," to work towards improving the systems, functions andprocesses dedicated to supporting our customers.

//JAMES F. CASHMANVColonel, USAFCommander

iN i

STRATEGIC/TOTAL QUALITY MANAGEMENT MASTER PLAN

TABLE OF CONTENTS

Commitment Letter 1

Mission Statement 4

Total Quality Management - Its Definition 6

DCASR Boston Vision Statement 8

Elements of Vision: 10

Management Commitment 11

Employee Involvement 12

Feedback 13

Customer Focus 14

Process Thinking Orientation 15

Measures of Vision Attainment 16

Management By Planning 17

One-Year Plan 23

Milestones 30

Training Plan 31

Annexes 34

Glossary 35

Principles 39

ii

LETTER

DCASR BOS-D

SUBJECT: Total Quality Management - Our Future

TO: All Employees

I am committed to creating an environment involvingmanagement and employees, now and in the Region's future,where essential elements of mission attainment and successare measured in terms of customer satisfaction.

Every DCASR employee must share a common desire to eliminatethe regulatory and bureaucratic obstacles inhibiting thecontinuous improvement of the services we provide ourcustomers. In the Total Quality Management environment, weare all customers. Traditionally, focus has been on theexternal customer--buying commands and industry. TQM expandsthis concept to include us--the individuals within thesystem. The internal customer of this new focus is the nextperson in the process--the user of the product each of usproduces.

I challenge you to work towards improving the systems,functions and processes dedicated to supporting ourcustomers. We need to change the way we think and performour jobs: to continuously improve our processes; to broadenour view of what we do; and to understand the impact of ouractions on each other and on the functional areas of ourorganization. I am committed to providing us with thenecessary tools to make these changes.

We are in the beginning stages of planning to meet thesechallenges by using the TQM philosophy and Management byPlanning techniques. These approaches are neither fads norpet projects. Rather, they are a way of improving everythingwe do to support our customers and enhance our environment.

2

DCASR BOS-D Page 2SUBJECT: Total Quality Management - Our Future

Attaining our shared vision will allow us to:

o know our customers,o provide the proper service to our customers, ando measure continuous improvement of our service.

This is our vision and our challenge for the future ofDCASR Boston.

JAMES F. CASHMANColonel, USAFCommander

3

MISSIO

MISSION STATEMENT

OUR MISSION IS TO ADMINISTER

DELEGATED CONTRACTS AND

PROVIDE QUALITY PRODUCTS

AND SERVICES TIMELY AND

ECONOMICALLY; TO BE RESPONSIVE

TO OUR CUSTOMERS' NEEDS BY BEING

PROACTIVE AND SEEKING

CONTINUOUSLY TO IMPROVE THE

ACQUISITION PROCESS.

wV

EFINITION OFTOTAL QUALITMANAGEMENT

(TQM)

TOTAL QUALITYMANAGEMENT (TQM)

TQM IS BOTH A PHILOSOPHY AND A SET OF

GUIDING PRINCIPLES ANCHORING A

CONTINUOUSLY IMPROVING ORGANIZATION.

TQM IS APPLYING QUANTITATIVE METHODS

AND HUMAN RESOURCES TO IMPROVE THE

MATERIAL AND SERVICES SUPPLIED TO AN

ORGANIZATION, ALL THE PROCESSES WITHIN

AN ORGANIZATION AND HOW CURRENT AND

FUTURE NEEDS OF OUR CUSTOMERS ARE MET.

VISION

STATEMENT

/ , 8

DCASR BOSTON

FIVE-YEAR VISION

CREATE AN ENVIRONMENT

THAT PROMOTES CUSTOMER

SATISFACTION THROUGH

TEAMWORK AND CONTINUOUS

PROCESS IMPROVEMENT.

10

MANAGEMENT COMMITMENT

NARRATIVE

MANAGEMENT COMMITMENT IS A LONG-TERM DEDICATION AND RESPONSIVENESSTO CHANGE CONCURRENTLY WITH DEVELOPING CLEAR POLICIES FORCONTINUOUS IMPROVEMENT. MANAGEMENT COMMITMENT MUST PROVIDE GROWTHOPPORTUNITIES FOR BOTH INDIVIDUALS AND THE ORGANIZATION THROUGHEDUCATION AND TRAINING. IT ALSO INCLUDES INVESTING TIME ANDRESOURCES TO PAVE THE WAY FOR ACHIEVEMENT.

IMPEDIMENTS

- NOT INVENTED HERE- JUST ANOTHER FAD- CRISIS MANAGEMENT- LACK OF PLANNING- LACK OF EDUCATION AND TRAINING- ORGANIZATIONAL CULTURE- LACK OF UNDERSTANDING OF MANAGEMENT PRINCIPLES- PETER PRINCIPLE- STIFLING EMPLOYEE CONTRIBUTIONS- BUREAUCRACY- CONFORMITY- OBTAINING COMMITMENT FROM ALL MANAGEMENT LEVELS- WE'VE ALWAYS DONE IT THIS WAY- RESISTANCE TO CHANGE- BLIND OBEDIENCE

COUNTERMEASURES

- PRACTICE, PRACTICE, PRACTICE- COMMON LANGUAGE; COMMON UNDERSTANDING- EDUCATION AND TRAINING- FEEDBACK MECHANISMS- PUBLICITY- MBP AND TQM- RECOGNITION

11

EMPLOYEE INVOLVEMENT

NARRATIVE

THE ANALYSIS OF EMPLOYEE INVOLVEMENT CONFIRMED THE DEMINGASSERTION: "MANAGEMENT IS RESPONSIBLE FOR 94 PERCENT OF THEPROBLEMS AND EMPLOYEES ARE RESPONSIBLE FOR ONLY 6 PERCENT."

EMPLOYEES MUST BE INVOLVED IN THE DECISION-MAKING PROCESS,MOTIVATED TO CONTRIBUTE THEIR IDEAS AND THOUGHTS ON WHAT ISVALUABLE AND ON WAYS TO EFFECT IMPROVEMENTS. THESE ARE THEPEOPLE DOING THE JOB. MANAGEMENT IS ULTIMATELY RESPONSIBLEFOR MAKING THE DECISIONS, BUT BY INVOLVING EMPLOYEES,MANAGERS CAN MAKE MORE INFORMED DECISIONS.

IMPEDIMENTS

SEE NEXT PAGE

COUNTERMEASURES

- EDUCATE MANAGERS- DEFINE EMPLOYEE INVOLVEMENT- PUBLICIZE- IMPROVE THE RESPONSIVENESS ON PROGRAM AREAS SUCH AS

BENEFICIAL SUGGESTIONS, MIPS- BEGIN USING TASK TEAMS- REESTABLISH "REAL" QUALITY CIRCLES- DEMONSTRATE THROUGH PRACTICE- ACKNOWLEDGE RESPONSIBILITY - HOW?- RECOGNIZE EMPLOYEES AS CUSTOMERS- CHANGE THE CULTURE- IMPROVE EMPLOYEE ORIENTATION (ALL SUPERVISORY LEVELS)- USE DCAS (VIP) BRIEFING FOR ALL EMPLOYEES- IDENTIFY AN INCENTIVE FOR MANAGERS TO CHANGE- IDENTIFY AN INCENTIVE FOR EMPLOYEES TO CHANGE

12

G-2-

L .3 tn

f... CD

CP3,

LZ 3F-I'm

In I U3

W C>

C, ,

C= Eo21C,

-3 C>C

C,-4

cm C4

*-. cnCC CCF- e , F

F-. mS :.4 9.4 C. - -CCQ s E- C.l -- E- -

E- - CZ-'CW =, CL 2 C:C> ~ =Z C, J=cn A C, =.t

I ~L. mF E-,~ ~ C . C oC.

* C C £ ~CC, c, oF-F C, 3 IC4 g, F-WCIW C C C L F.cL F- L- W L- L F L. W E- E- '- L. -WC=o- Co F-,

E-Ico C3C -

L- C) an CL

cn. I z -a

M~ L.3 cn ::Am .~C

'n C>en E- L.3 C, C'

CoL.2 CL 3 P.-.F .-

En f- L.2 C) -. 1c- F-- m- =M E- -4

-C -- =- C I WoF-

cc C>-F F C, cm ap Co) .9 V28, o CC3C Ca =2 C,. C, C, E- Co QoC o C .).) F.FD L)oCCF , , CoC'

gm - FC . . En-C L.3 L-

1 5CL -E; C, En C:, c::. Co c~- CC/2 C, F- L- b-~CC C,

-. 1 8 R , P-= Co-> = U C C -1 as F-,C 61 V02C.C>-C

CLa2 m --c.) C4~ ~~,CC.. -- E- -2-C tCoF cnw 1

L4 C.- "a C, CW 2F- C * f- - S..Co C, w E-o C, [. oC o - po Co C>.)C

~~* C, ~.. F- C, C, Co C, Co F- wo .- E - C-) tn , ) F . , . O Co F oC , C , C

F cl,C, , , C>)C ~ w- - C . C>,C . C=o,~C2w-. C'o-- . Co -C C >~C wC .... )w CDC=0 nC o t CP F- C C.Co o - C .En W-. CD &a -- C.- C, - 2. oC

bccz Ao , , o ,.)C F 4= =P, f - C, w o C. Co-C Co C, P .) -2 C, 0. E-, - C C, FW Mo - C W .P4 -a C>

12-1

FEEDBACK

NARRATIVE

FEEDBACK IS A TWO-WAY PROCESS. IT ENHANCES COMMUNICATIONS CROSSFUNCTIONALLY, PROMOTES A COMMON LANGUAGE AND SERVES A CONSTANCYOF PURPOSE. FEEDBACK MUST FLOW BOTH WAYS--FROM EMPLOYEES TOMANAGEMENT AND FROM MANAGEMENT TO EMPLOYEES--AND INCLUDEACROSS-THE-BOARD PARTICIPATION.

IMPEDIMENTS

- LACK OF COMMON LANGUAGE- TELLING PEOPLE WHAT THEY WANT TO HEAR RATHER THAN HOW IT IS

(FEAR)- REQUIRES COMMUNICATION- KNOWLEDGE OF TOOLS- WITH WHOM DO I TALK?- IT'S TOUGH TO DO- KNOWLEDGE OF CUSTOMERS- TIMELINESS OF RESPONSE

COUNTERMEASURES

- EDUCATION- TRAINING- PUBLICITY- CROSS-FUNCTIONAL ORIENTATION- RECOGNITION- PRACTICE (TO ELIMINATE FEAR)- TENACITY

13

CUSTOMER FOCUS

NARRATIVE

CUSTOMER FOCUS IS KNOWING YOUR CUSTOMERS, IDENTIFYING THEIR NEEDSAND MEASURING THE SATISFACTION OF THE SERVICES DCASR BOSTONPROVIDES.

THERE ARE EXTERNAL CUSTOMERS (i.e., BUYING COMMANDS) AND INTERNALCUSTOMERS (i.e., THE EMPLOYEE WITHIN THE SYSTEM--THE NEXT PERSONIN THE PROCESS). IDENTIFYING AND ACKNOWLEDGING CUSTOMERS PROVIDESTHE OPPORTUNITY TO PROMOTE CUSTOMER SATISFACTION THROUGH TEAMWORKAND CONTINUOUS PROCESS IMPROVEMENT.

IMPEDIMENTS

- DO THEY KNOW THEY ARE OUR CUSTOMERS?- POOR MARKETING- APATHY- VERTICAL THINKING- CONFLICTING PRIORITIES- POOR DEFINITION OF THE WORD "CUSTOMER"- LACK OF RESPONSIVENESS- POOR PERFORMANCE- CULTURE

COUNTERMEASURES

- EQUITABLE RECOGNITION- EDUCATION- TRAINING- FEEDBACK (CUSTOMER COMPLAINTS/SUGGESTIONS

(INTERNAL/EXTERNAL- PUBLICITY (INTERNAL/EXTERNAL)- CROSS-FUNCTIONAL THINKING- CLEAR DIRECTION ON PRIORITIES- IDENTIFY CUSTOMERS- PERFORMANCE MEASUREMENTS JOINTLY DEFINED

14

PROCESS THINKING ORIENTATION

NARRATIVE

PROCESS-THINKING ORIENTATION IS A METHODOLOGY OF IDENTIFYING THEPROCESS FROM BEGINNING TO END AND DOCUMENTING THAT PROCESS THROUGHSTATISTICAL TOOLS. IT ALSO REQUIRES INVOLVING ALL LEVELS WITHINTHE ORGANIZATION AND IDENTIFYING HOW A CHANGE IN ONE PART OF THESYSTEM AFFECTS OTHER PARTS OF THE ORGANIZATION AND THE PROCESS ASA WHOLE.

IMPEDIMENTS

- HARD TO DEFINE - NO RIGHT OR WRONG; LOT OF GRAY AREAS- EXISTING PRACTICES- GOAL ORIENTATION- HQs DRIVEN GOALS- USE OF STATISTICAL METHODS (FEAR OF USE)- LACK OF PLANNING- INACCURATE INFO. - LOTS OF WHAT'S BUT NO WHY'S- WE MAKE ASSUMPTIONS (DECISIONS) WITHOUT SUPPORTING DATA- VERTICAL ORIENTATION - EVERYTHING IS TOP DOWI- ANOTHER FAD- LACK OF EDUCATION AND TRAINING- PEOPLE WANT TO BE LED RATHER THAN LEAD

COUNTERMEASURES

- EDUCATION (HORIZONTAL THINKING<USE OF VALID MEASUREMENT TOOLS

- TRAINING (DEFINITION- MANAGEMENT COMMITMENT (SHOW ME

<ALLOCATION OF TIME(CREDIBILITY

- FEEDBACK (CONTINUOUS COMMUNICATION<ON SUCCESSES(PROGRESS; CHECKUPS

- PATIENCE- USE (SEEING IS BELIEVING

(BELIEVE IT CAN HAPPEN- PERSEVERANCE- GETTING EMPLOYEES INVOLVED OVER TIME

15

MEASURES OF VISION ATTAINMENT

NARRATIVE

MEASURES OF VISION ATTAINMENT ARE THE COMMON STATISTICAL METHODSWHICH PROVIDE BASE LINE INFORMATION FOR CONTINUOUS PROCESSIMPROVEMENT. MEASURES MUST BE "TIME SENSITIVE," TIED TOGETHERAND ATTAINABLE.

IMPEDIMENTS

- LACK OF UNDERSTANDING- KNOWING WHAT TO MEASURE- KNOWING HOW TO MEASURE- FEAR OF USING QUALITY CONTROL AND MANAGEMENT TOOLS- KNOWING THE CUSTOMERS- CAN'T MEASURE WHAT WE WANT TO; MUST CONTINUE TO MEASURESOMEONE ELSE'S GOALS

COUNTERMEASURES

- EDUCATION AND TRAINING- USE OF THE TOOLS; EXPOSURE AND PRACTICE- FEEDBACK- ABOLISH ARBITRARY GOALS- CULTIVATE CUSTOMER RELATIONSHIPS

16

MANAGEMENT BY PLANNING

SUPPORTING DOCUMENT

DETAILED PLANNING STRUCTURE

17

0 o 0. . "Cl):C))Z

'0

CL C

> 4 -

------- --------------------- a)L C CJ

S 0 0

4. > /

CD " .2 >, ,,._ C:

>.- 0 0>I 4-1

>1m x c -

a - LU wW~a CL0C

CC 0

n 0

a_ jz 0 0 0I O M OF-)

1.8

The Seven Tools for Management and PlanningGeneral Planning

The Affinity Chart (KJ) makes The Interrelationship Digraph iden-sense out of disperate language in- tifies causal relationships betweenformation by placing it on cards and language data and thereby identifiesgrouping the cards. critical items and originating items.

Intermediate Planning

* A

-112 13 1. 1 I 7 8i

. 2, Ci *

211 1 I I 1 1

!',. ! I , 1 '1221 3I It

1 01

2 2 1 ' I I

The Tree Dlagram systematically The Matrix Chart compares one set of The Matrix Data Analysis plotsbreaks items down into details, items against another set and identi- items on an x- and y-axis thus show-

fies the strength of their relationship. ing relationships of individual itemsand groups of items.

Detailed Planning

X X X

The PDPC (Process Decision Pro- The Arrow Diagram identif! sgram Chart) identifies the various which things can be cone simulate-things that can go wrong in a plan neously. The critical path is theand identifies countermeasures or longest time line from beginning tocontingencies, end of progect.

19

MANAGEMENT BY PLANNING (MBP)

THE MBP SYSTEM BREAKS PLANNING INTO SIX STEPS:

FIVE-YEAR VISION

ONE-YEAR PLAN

DEPLOYMENT TO DEPARTMENTS

EXECUTION

MONTHLY DIAGNOSIS

ANNUAL DIAGNOSIS

20

STEP 1

5 YRVISION

STEP 6 STEP 2

ANNUAL IlYPDIAGNOSIS p

STEP 5 C D STEP 3

MONTHLY DEPLOYMENTXDIAGNOSIS . -_ /

STEP 4

EXECUTION

21

THE SIX MBP STEPS

STEP 1 -- FIVE-YEAR VISION

THE FIVE-YEAR VISION IS COMPRISED OF ELEMENTS WHICH WE WANTTO CHARACTERIZE OUR ORGANIZATION. THIS MUST BE DONE BYSENIOR MANAGEMENT, BUT WHILE STILL IN DRAFT, IT SHOULD BECIRCULATED TO ALL MANAGERS FOR COMMENTS ON WHAT ACTION PlANSIT MIGHT GENERATE.

THIS STEP ENABLES TOP MANAGEMENT TO DEVELOP A VISION WHICHTHEY KNOW TO BE CLEAR AND UNDERSTOOD BY ALL AND WHICH WILLPRODUCE DESIRED ACTION--BASED ON THE BUY-IN OF PARTICIPATION.

STEP 2 -- ONE-YEAR PLAN

THE ONE-YEAR PLAN IS DEVELOPED USING STATISTICAL PROBLEMSOLVING TECHNIQUES. THE ONE-YEAR PLAN FOCUSES ON THEFIVE-YEAR VISION, WHAT'S GOING ON IN THE WORLD AND IN THEORGANIZATION, AND ON LAST YEAR'S SUCCESSES AND FAILURES.

ADVANTAGES OF USING MANAGEMENT BY PLANNING TOOLS FOR THEONE-YEAR PLAN INCLUDE: A HIGH LEVEL OF DETAIL WHICH HELPDETERMINE CAPABILITY POTENTIAL FOR CONTINUITY, e.g.,SOLVING LAST YEAR'S PROBLEMS, THOROUGHNESS AND A SYSTEMATICAPPROACH.

STEP 3 -- DEPLOYMENT

DEPLOYMENT FOCUSES ON THE IDENTIFICATION OF KEYIMPLEMENTATION ITEMS AND A CONSIDERATION OF HOW THEY CANSYSTEMATICALLY ACCOMPLISH THE PLAN.

STEP 4 -- EXECUTION

EXECUTION FOCUSES ON THE POWER OF CONTINGENCY PLANNING. THESTEPS TO ACCOMPLISH THE TASK ARE IDENTIFIED AND ARRANGED INORDER. THE IMPEDIMENTS AND COUNTERMEASURES AT EACH STEP ARELISTED FOR EACH POTENTIAL PROBLEM. THIS THOROUGH APPROACHREDUCES THE LIKELIHOOD OF THINGS FALLING THROUGH THE CRACKS.

STEP 5 -- MONTHLY DIAGNOSIS

THE MONTHLY DIAGNOSIS FOCUSES ATTENTION ON THE PROCESS ANDTHE ROOT CAUSE RATHER THAN THE SYMPTOMS. THE MONTHLYDIAGNOSIS IS TO ASSURE DIRECTION AND CONSTANCY OF PURPOSE.

STEP 6 -- ANNUAL DIAGNOSIS

THE ANNUAL DIAGNOSIS FOCUSES ON THE PROCESSES THAT UNDERLINETHE RESULTS. IT ALLOWS MANAGEMENT TO MAKE SURE THAT EACHSECTOR OF THE ORGANIZATION IS CAPABLE OF MEETING ITS TARGETS.

22

A

R

23

ONE-YEAR PLAN

To realize our vision, we must first identify and rank ourprocesses and then define those key processes analytically.

To achieve our plan, management at all levels must activelydemonstrate its commitment. All managers, supervisors andemployees must receive the education and training to understandthe Total Quality Management (TQM) philosophy.

Identifying, ranking and defining the key processes andestablishing targets will set the stage for the next phase ofManagement By Planning.

24

IDEV. POLICY FOR

QUALITY FOCUS

ESTABLISH TQMORGANIZATION- DE MON STRAT E -

PUBLICITY

L ACTION

MANAGEMENT MBP, TQM, ETC.COMMITMENT EDUCATION/

PRACTICE

FEEDBACK MECHANISMS

25

PARTICIPATIVEMANAGEMENT

DEFINE MANAGEMENTSY'STEM CHANGES

REORGANIZATION

EDUCATE

E M P L O Y E E _ T E A M _P O J E C T

NVOLVEMENT -CHANGE CULTURE TEAM PROJECTS

LISTENING

ACCEPT AND JOINTLY DEFINEDACKNOWLEDGE PERFORMANCE

RESPONSIBILITIES MEASUREMENTS

26

CREATE INFORMALPERSON TO PERSON

SYSTEM

CUSNTMER CUSTOMER SURVEYING-- RECOGNITION

~CROSS

-- 1FUNCTIONAL

EDUCATION/ ORIENTATIONTRAINING

t UNDERSTAND THECULTURE OF THE ORG.

FOCUS PUBLICITY

ESTABLISH CLEARSPECIFICATIONS

CLEARDIRECTION JOINTLY

DEFINEDPERFORMANCE

MEASUREMENTS

FEEDBACK INTERNAL/EXTERNAL

27

METHODOLOGIES

PRACTICE.EDUCATION/

TRAINING CONTINUOUSUPDATE

DATA COLLECTION

PROCESS DEDICATION

THINKING MANAGEMENTORIENTATION COMMITMENT CREATE CLEAR

OPERATIONALDEFINITIONS

ACHIEVING EMPLOYEEFEEDBACK INVOLVEMENT

28

COMMUNICATIONS

APPLICATION EXPOSURE/METHODS PRACTICE

CONTINUOUSLYUPDATE

CULTIVATE CUSTOMER

MEASURES RELATIONSHIPS

O~F VISION FEEDBACK CREATE SYSTEMS TO

ATTAINMENT CHECK RESULTS

CREATE OBJECTIVEMEASUREMENTS

ABOLISH IDENTIFY CROSSARBITRARY PURPOSES

GOALS TREAT THE CAUSENOT THE SYMPTOMS

29REWARD IMPROVEMENT

29

DCASR BOSTON'S MILESTONES FOR I I I I IIISTRATEGIC/TOM EXECUTION PLAN I CT 1989 ICT 1990 CY 1991 jCY 1992 CY 1993

.................................... 1 2 3 4 1 23 4 1 2 34 1 23 4 1 2 3 411. ESTABLISH STEERING COMMITTEE I + IIII---------------------------------------------------------------------------------- I

a. ESTABLISH WORKING GROUP I + I I I II---------------------------------------------------------------------------------- I

b. ESTABLISH TOM ORGANIZATION I + I I I I---------------------------------------------------------------------------------- I

12. PUBLISH STRATEGIC/TQM MASTER PLAN I < I I I II --------------------------------------------------------------------------------- I113. TRAININGI IIII---------------------------------------------------------------------------------- I

a. DEVELOP TRAINING REQUIREMENTS I * -- I-------- I-------- I-------- I--------I---------------------------------------------------------------------------------- I

b. IDENTIFY COURSE AVAILABILITY I * -I------ I-------- I-------- I--------I

I c. CONDUCT TRAINING I * ------------- I-------- I-------- I--------I

14. ONE-YEAR PLAN IMPLEMENTATION I I I I I---------------------------------------------------------------------------------- I

a. IDENTIFY PROCESSES I * I-------- I-------- I-------- I--------I------------------------------------------------------------------------------ I

b. PRIORITIZE PROCESSES I * - I----------I--------J- ------- I-------------------------------------------------------------------------------------- I

c. DEFINE KEY PROCESSES I * - I ---- I-- --- )------- I----------------------------------------------------------------------------------------- 1

15. SELECT INITIAL TOM PROJECTS I I I III------------------------------------------------------------------------------ I

a. MANAGEMENT BY PLANNING I * - I-------- I-------- I-------- I--------I---------------------------------------------------------------------------------

b. DEFECT REDUCTION CONTROL PROG.1 * - I-------- I-------- I-------- I------------------------------------------------------------------------------------------ II C. INVOICE COUNTING I .- I-------- I-------- I-------- I--------I

---------------------------------------------------------------------------------- Id. CONTRACT DATA BASE I *- I-------- I-------- I-------- I--------I

---------------------------------------------------------------------------------- Ie. MONTHLY MANAGEMENT INDICATORS I >- I-------- I-------- I-------- I--------I

------------------------------------------------------------------------------ II f. MANAGEMENT BY CONTRACTOR I >- I-------- I-------- I-------- I--------I

---------------------------------------------------------------------------------- ILEGEND:I

> SCHEDULED START < SCHEDULED COMPLETION * STARTED + COMPLETED - -- ONGOINGI

---------------------------------------------------------------------------------- I

30

l I I

---- TRAINING

PLAN

31

CO5:5 - :0 0

o 0 0 LLon -j ( .) 00L M C

__ __ LL c 0 Im< a.

2 Cyr)<U

H -,

z > > F >>CO~O0 H

0 0~H H: w-

D O0 Wi> 0 -0 = >-~0 H2 pm-=

0E )I O 0 O Q 00

~~L 0 0- 0H 060 F- C/ U)~ 0 -F C)a

D z o im > = :0 c 5crc -J u L<Jn04

0~ ~ ~ u-5 C -0L.j 0 wWWJ 0 z L LU W 0

__-_< F- CC<- 0 00 <

U z 00

(, 0- ZZ FZ C

mr a 00 0 )c yc

0 z/2 0

M 332

ILd LLU LdIU LUI LU

Ii En In M U U)Iz c C C xr c c

Iz D 1-H H - E E xcc: -~- - -lo0 C CA -)- H1 <1 CA11 0 C C*H -)--a

LD~ LO 0io -. 2 c 0 O aiC GC -1 cl: CJ -H z L IZ CC L2 - '-4 -j r-z zr Zi C- JC3 -ZI - Z I I1 Iu u I I " 0 r C-)E ! u411x c c ED) <I:C CT ULh ciy: LCU) c E C Lf LU)<ICLI W 2 co CLL L COW UJ L x0 Ci CLL"IW ciJ m m m LMw LI odL 0 m m"I1 U3 : CC cic cci- 0ci CC O ncu CC 0 cic L"oI-I En LOU ) (flU) O "U -W U)- " LrU) -CI Z int C C cr- nC CCc E ci C I ICC- 1-

-I

WI

I .

I C HCrC~Ii Ci: C:c c Qi:1Ii 0D LL LOCO cOI UJ Q: U) : Z O U3

CI: C CC C

HZ C: -1 2 -1 CLzMIC z C 0 w C 0

-IH z -m -i M

I-4Enf E C- - l mr E

I ZI i Qc: >

I Hr H HL0eI C- WUu

I CC H -C L1 1- 2-~ <T c_3 1 :3 21 I3r :a_

I H -4 CL w CDI- 0 >-Z 0c

CI it- CLE UtCiI w w >LL ( -n wL

1111> ci > Of: H D2110 LU oc II -0 C x)"W CL CL C C1> LU LL zH-I > cE Z -4 D I: >

I H- Ill cw -UzWHI M EC -4 U H z(niD Z) - zU) H 0 D 0 c1:10 0 u = U 0 ZC 0 -1DI W C 0L c -Z w 1-HCL01lx Cc: CD C " X0lW II CL -iz CL 0~i cc wzC

I LU"- C:) IllzIC C >HF C CLC0 CL CL >C<I L Lit III L T m m LUI

C-4 CO CA E

r- co co o- , Dr,0

I I I I I I I IWi: C - CA a,- CAi - OI-I -' 1 c -C 4-

CIN N NN NQlci UI -c a ,a - 01

33

ANNXE

34

GLOSSARY

Affinity Diagram: (Also known as KJ Diagram) One of sevenmanagement tools which assists general planning. It makessense out of disparate language information by placing it oncards and grouping the cards that go together in somecreative way. "Header" cards are used to summarize eachgroup of cards.

Annual Diagnosis: Review focusing on process, successes andfailures in planning, execution, and monthly diagnosis to getbetter processes and results for the following year.

Arrow Diagram: One of the seven management tools which likethe PERT (Program Evaluation Review Technique) and CPM chart(Critical Path Method), assists detailed planning by plottingthe sequence of steps for doing parts of a job, indicatingthe jobs that can be done simultaneously, and the "critical"or longest path from beginning to end.

Catch Ball: A term that refers to the fact thatcommunication up, down, and horizontally across theorganization must sometimes go from person to person severaltimes to be clearly understood.

Continuous Improvement: A system in which individuals in anorganization look for ways to do things better, usually basedon understanding and control of variation.

Control Item: Something measured to determine to what extenta target or means (measure) is met.

Daily Control: The system by which each worker identifiessimply and clearly what they must do to fulfill their jobfunction in a way that will enable the organization to runsmoothly. Also the system by which these required actionsare monitored by the employee himself.

Fishbone Chart: A cause and effect diagram for analyzingproblems and the factors that contribute to those problems.

Flag System: A method of displaying the interrelationshipsof different organizational run charts in such a way thatplanned and actual results are clear as well as relationshipsbetween various units. The combination of lines and runcharts has the appearance of flags, hence the name.

Histogram: A chart which takes measurement data (e.g.,temperature, dimensions) and displays its distribution. Ahistogram reveals the amount of variation that any processhas within it.

35

Interrelationship Digraph: One of the seven management toolswhich assist general planning by showing with arrows thecause and effect relationship between items. Important itemsare recognized by the high number of arrows going in andcoming out. Items with arrows only going out are usuallygood places to initiate action.

Manager nt by Planning (MBP): MBP is the strategic planningsystem that uses all improvement efforts. It was started in1965 and has been fine tuned over the last twenty years.

Matrix Data Analysis: One of the seven management toolswhich assists intermediate planning by plotting items onx- and y- axes to show relationships between individual itemsand groups of items.

Matrix Diagram: One of the seven management tools whichassists intermediate planning by comparing one set of itemsagainst another set and identifies the strength of theirrelationship.

Means: (or Measure) A way to accomplish a target.

Monthly Diacrnosis: The self evaluation of performanceagainst targets, an examination of things that helped orhindered in meeting the targets, and the corrective actionsthat will be taken.

Objective: The means to meet a one-year plan at the top ofthe organization or to support the base strategy at a lowerlevel of organization.

One-Year Plan: A statement of objectives of anorganizational event for a year.

Pareto Analysis: A vertical bar graph showing the bars inorder of size from left to right. Named after the 19thcentury economist Wilfredo Pareto (who discerned that wealthwas not evenly distributed). Helps focus work on the vitalfew problems rather that the trivial many.

PERT Chart: (Program Evaluation and Review Technique) Thischart aids the reduction of over-all project time by showingwhat can be done simultaneously and enabling a reduction ofdelays between things which are done sequentially.

PDCA Cycle: (Plan-Do-Check-Act) The plan-do-check-actsystem, sometimes referred to as the Deming or Shewhartcycle, is the scientific methodology in which improvementsare planned, tried, and checked to see if they deserve to beimplemented or abandoned.

36

Plan: The means to achieve a target.

Policy: The objectives that are to be achieved through thecooperation of all levels of managers and employees. Apolicy consists of targets, plans, and target values.

Policy Deployment: One English translation for hoshin kanri.(Others are management by policy and hoshin planning.)Policy deployment orchestrates continuous improvement in away that fosters individual initiative and alignment.

Process Decision Program Chart: (PDPC) A tool for detailedplanning that identifies the various things that can go wrong4-n a plan and identifies the countermeasures orcontingencies.

Project Teams: Ad hoc groups whereby the problem defines theteam.

Run Chart: This chart visually represents data. It is usedto monitor a system to see whether or not the long rangeaverage is changing.

Ouality Function Deployment: (Also QFD or Quality FactorDevelopment) A system that identifies the needs of thecustomer and gets it to all the right people so that theorganization can effectively exceed competition in meetingthe customers' most important needs, thereby increasingmarket share.

Quality Management: Those systems, organizations, and toolswhich make it possible to plan, fabricate and serve aquality product or service.

SDCA Cycle: (Set standard, Do it, Check it, Activate orAdjust it) This is the system by which standard proceduresare implemented or changed.

Seven New Tools for Management and Planning: (Also calledthe Seven Management Tools or Seven New Tools) It includesAffinity Diagram (kJ), Interrelationship Digraph, TreeDiagram, Matrix chart, Matrix data analysis, PDPC (ProcessDecision Program Chart) and Arrow Diagram. They are usedheavily in Management by Policy, Quality Function Deploymentand Total Productive Maintenance.)

Standardization: The system of documenting and updatingprocedures to make sure everyone knows clearly and simplywhat is expected of them (measured by daily control).

Statistical Quality Control: (SQC) The use of knowledge andcontrol of variation in improving and maintaining theorganizational processes.

37

Storyboarding: A system developed and popularized by WaltDisney in which characters and plots and locations (etc.)were put on cards and reorganized to create new story lines.It is now used to describe any use of cards to arrangeinformation.

Strateqy: A means to meet an objective.

Systems Flow/Tree Diagram: One of the seven management toolsthat helps intermediate planning by systematically breakingdown plans into component parts.

Target: The desired goal that serves as a yardstick toevaluate the degree to which a "policy" is achieved. It isalso referred to as a "control point," "control'item," or"target item."

TarQet Value: Normally a numerical definition of successfultarget attainment. This is not always possible. You mustnever separate the target from the plan.

Total Quality Management: (TQM) is the application ofquantitative methods and human resources to improve thematerial and services supplied to an organization, all theprocesses within an organization and the degree to which theneeds of the customer are met, now and in the future.

Vision: A five-year plan of direction.

38

PRINCIPLES

1. EVERYONE MANAGES A PROCESS.

2. THE ORGANIZATION IS A NETWORK OF INTERDEPENDENT PROCESSINGSYSTEMS LINKED IN SUPPLIER/CUSTOMER RELATIONSHIPS.

3. SYSTEMS CAN BE DEFINED FROM MACRO TO MICRO LEVELS FOR

ANALYSIS.

4. BOUNDARIES ARE DEFINED BY PROCESS FLOW.

5. RESPONSIBILITIES MAY CROSS FUNCTIONAL BOUNDARIES. THEREFORE,PROCESSING SYSTEM OWNERSHIP MUST BE MADE EXPLICIT.

6. PROCESS CONTROL REQUIRES MEASUREMENT AND FEEDBACK TO THEPROCESS MANAGER.

7. TARGETS, OBJECTIVES, AND MEASURES SHOULD HELP THE PROCESSMANAGER (SUPPLIER) MEET CUSTOMER REQUIREMENTS.

8. PROCESS IMPROVEMENT REQUIRES COMMUNICATION BETWEEN CUSTOMERAND SUPPLIER.

9. IMPROVEMENT IS PROCESS, NOT OUTCOME ORIENTED; OUTCOMES AREMEASURED OVER TIME TO UNDERSTAND PERFORMANCE PATTERNS INORDER TO IMPROVE THE PROCESS.

10. VALUE IS ADDED WHEN THE CUSTOMER IS HELPED.

39